1.1                          A bill for an act 
  1.2             relating to public administration; authorizing the 
  1.3             Minnesota state retirement system, the public 
  1.4             employees retirement association, and the teachers 
  1.5             retirement association to purchase or construct an 
  1.6             administrative building; authorizing the issuance of 
  1.7             certain revenue bonds; amending Minnesota Statutes 
  1.8             1998, sections 353.03, subdivision 4; and 354.06, 
  1.9             subdivision 7; proposing coding for new law in 
  1.10            Minnesota Statutes, chapter 356.  
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1998, section 353.03, 
  1.13  subdivision 4, is amended to read: 
  1.14     Subd. 4.  [OFFICES.] The commissioner of 
  1.15  administration shall may make provision for suitable office 
  1.16  space in the state capitol or other state office buildings, or 
  1.17  at such other location in St. Paul as is determined by the 
  1.18  commissioner for the use of the board of trustees and its 
  1.19  executive director.  The commissioner shall give the board at 
  1.20  least four months notice for any proposed removal from their 
  1.21  present location.  Any and all rental charges shall be paid by 
  1.22  the trustees from the public employees retirement fund. 
  1.23     Sec. 2.  Minnesota Statutes 1998, section 354.06, 
  1.24  subdivision 7, is amended to read: 
  1.25     Subd. 7.  [OFFICES.] A suitable office shall may be 
  1.26  provided by the state through the proper officer for the use of 
  1.27  the board and its executive director. 
  1.28     Sec. 3.  [356.89] [PUBLIC PENSION FACILITIES.] 
  2.1      Subdivision 1.  [BUILDING; RELATED FACILITIES.] The board 
  2.2   of directors of the Minnesota state retirement system, the board 
  2.3   of trustees of the public employees retirement association, and 
  2.4   the board of trustees of the teachers retirement association are 
  2.5   authorized to expend or otherwise pledge pension funds or the 
  2.6   proceeds of revenue bonds as provided in subdivision 3 for the 
  2.7   common ownership, operation, and improvement of a building and 
  2.8   related facilities for the administration of their public 
  2.9   pension systems.  This authority includes the authority to 
  2.10  purchase or lease land and facilities and the authority to 
  2.11  design, construct, furnish, improve, and equip a building and 
  2.12  related parking facilities to accommodate employees and 
  2.13  visitors.  The boards' planning, selection, design, and building 
  2.14  of facilities are not subject to approval by the capitol area 
  2.15  architectural and planning board under section 15.50, 
  2.16  subdivision 2, paragraph (c), competitive design planning under 
  2.17  section 15.50, subdivision 2, paragraph (e), and the capital 
  2.18  improvements provisions of sections 16B.30 to 16B.33.  The 
  2.19  competitive acquisition process set forth in chapter 16C does 
  2.20  not apply provided the process set forth in subdivision 2 is 
  2.21  followed. 
  2.22     Subd. 2.  [CONTRACTING PROCEDURES.] (a) The boards may 
  2.23  enter into a contract for facilities with a contractor to 
  2.24  furnish the architectural, engineering, and related services as 
  2.25  well as the labor, materials, supplies, equipment, and related 
  2.26  construction services on the basis of a request for 
  2.27  qualifications and competitive responses received through a 
  2.28  request for proposals process which must include the items 
  2.29  listed in paragraphs (b) to (i). 
  2.30     (b) Prior to issuing a request for qualifications and a 
  2.31  request for proposals, the boards, with the assistance of the 
  2.32  department of administration, shall prepare performance criteria 
  2.33  and specifications which shall include: 
  2.34     (1) a general floor plan or layout indicating the general 
  2.35  dimensions of the public building and space requirements; 
  2.36     (2) design criteria for the exterior and site area; 
  3.1      (3) performance specifications for all building systems and 
  3.2   components to assure quality and cost efficiencies; 
  3.3      (4) conceptual floor plans for systems space; 
  3.4      (5) preferred types of interior finishes, styles of 
  3.5   windows, lighting and outlets, doors and features such as 
  3.6   built-in counters and telephone wiring; 
  3.7      (6) mechanical and electrical requirements; 
  3.8      (7) special interior features required; and 
  3.9      (8) completion schedule. 
  3.10     (c) The boards shall first solicit statements of 
  3.11  qualifications from eligible contractors and select more than 
  3.12  one qualified contractor based upon experience, technical 
  3.13  competence, past performance, capability to perform, and other 
  3.14  appropriate facts.  Contractors selected under this process 
  3.15  shall be, employ, or have as a partner, member, coventurer, or 
  3.16  subcontractor, persons licensed and registered under chapter 326 
  3.17  to provide the services required to design and complete the 
  3.18  project.  The boards do not have to select any of the 
  3.19  respondents if none reasonably fulfill the criteria set forth 
  3.20  within. 
  3.21     (d) The contractors selected shall be asked to respond to a 
  3.22  request for proposals.  Responses must include site plans, 
  3.23  design concept, elevation, statement of material to be used, 
  3.24  floor layouts, a detailed development budget, and a total cost 
  3.25  to complete the project.  The proposal must indicate that the 
  3.26  contractor obtained at least two proposals from subcontractors 
  3.27  for each item of work and must set forth how the subcontractors 
  3.28  were selected.  The boards shall evaluate the proposals based 
  3.29  upon design, cost, quality, aesthetics, and the best overall 
  3.30  value to the state pension funds.  The board need not select any 
  3.31  of the proposals submitted and reserves the right to reject any 
  3.32  and all proposals, and may terminate the process or revise the 
  3.33  request for proposals and solicit new proposals if the boards 
  3.34  determine that the best interests of the pension funds would be 
  3.35  better served by doing so.  Proposals submitted shall constitute 
  3.36  nonpublic data until the contract is awarded. 
  4.1      (e) The contract selected must comply with sections 574.26 
  4.2   to 574.261.  Prior to the execution of a final contract, the 
  4.3   contractor selected shall certify a firm construction price and 
  4.4   completion date. 
  4.5      (f) The boards may consider building sites in the city of 
  4.6   St. Paul and surrounding suburbs. 
  4.7      (g) Any land, building, or facility leased, constructed, or 
  4.8   acquired and any leasehold interest acquired under this section 
  4.9   shall be held in common ownership in the name of the three 
  4.10  retirement systems as tenants in common.  Each retirement system 
  4.11  fund shall consider its interest as a fixed asset of its pension 
  4.12  fund in accordance with governmental accounting standards. 
  4.13     (h) The boards may lease to another governmental 
  4.14  subdivision any portion of the funds' building and lands which 
  4.15  is not required for their direct use upon such terms and 
  4.16  conditions as they deem to be in the best interest of the 
  4.17  pension funds.  Any income accruing from such rentals shall be 
  4.18  separately accounted for and utilized to offset ongoing 
  4.19  administrative expenses and any excess shall be carried forward 
  4.20  for future administrative expenses.  The boards are also 
  4.21  authorized to enter into lease agreements for the establishment 
  4.22  of satellite offices should the boards find such offices to be 
  4.23  necessary in order to assure their members reasonable access to 
  4.24  their services.  The boards also have the authority to request 
  4.25  the commissioner of administration to lease any portion of their 
  4.26  building not required for their direct use pursuant to the 
  4.27  commissioner's authorities under section 16B.24. 
  4.28     (i) The boards shall formulate and adopt a written working 
  4.29  agreement which shall set forth the nature of each retirement 
  4.30  system's ownership interest, the duties and obligations of each 
  4.31  system towards the construction, operation, and maintenance 
  4.32  costs of their facilities, and the identification of one 
  4.33  retirement fund to serve as manager for operating and 
  4.34  maintenance purposes.  The boards may contract with independent 
  4.35  third parties for maintenance-related activities, services, and 
  4.36  supplies, and may utilize the services of the department of 
  5.1   administration where economically feasible to do so.  In the 
  5.2   event the boards cannot agree or resolve a dispute which relates 
  5.3   to operations or maintenance of the facilities, they may request 
  5.4   the commissioner of administration to appoint a representative 
  5.5   from the department's real estate management division to serve 
  5.6   as arbitrator of the dispute with authority to issue a written 
  5.7   resolution of the dispute. 
  5.8      Subd. 3.  [REVENUE BONDS AUTHORIZED.] The boards, or any of 
  5.9   them, may issue revenue bonds in the principal amount necessary, 
  5.10  in the opinion of the boards, to achieve the purposes described 
  5.11  in subdivisions 1 and 2; to pay issuance costs and interest 
  5.12  costs; and to establish necessary reserves to secure the bonds.  
  5.13  The boards may issue bonds for the purpose of refunding bonds 
  5.14  issued under this subdivision. 
  5.15     Subd. 4.  [PROCEDURE.] The bonds authorized in subdivision 
  5.16  3 must be sold, issued, and secured in the manner provided in 
  5.17  chapter 475 for bonds payable solely from revenues, and the 
  5.18  boards have the same powers and duties as a municipality and its 
  5.19  governing body in issuing bonds under that chapter.  The bonds 
  5.20  may be sold at any price and at public or private sale as 
  5.21  determined by the boards.  The bonds may be sold in one or more 
  5.22  series.  Different series may be backed by different revenue 
  5.23  sources.  No election is required. 
  5.24     Subd. 5.  [NONLIABILITY OF STATE.] The state of Minnesota 
  5.25  is not liable on bonds of the boards and the bonds are not a 
  5.26  general or moral obligation of the state. 
  5.27     Subd. 6.  [NONLIABILITY OF INDIVIDUALS.] Neither the 
  5.28  members of the boards nor any person executing the bonds on 
  5.29  behalf of the boards shall be personally liable on the bonds or 
  5.30  subject to any personal liability or accountability by reason of 
  5.31  executing them.