HF 13

as introduced - 88th Legislature, 2013 1st Special Session (2013 - 2013) Posted on 09/10/2013 10:04am

A bill for an act
relating to stadiums; eliminating certain not public data classifications related to
the Minnesota Sports Facilities Authority; amending Minnesota Statutes 2012,
sections 473J.09, subdivision 4; 473J.11, subdivision 1; 473J.15, subdivisions
6, 9.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 473J.09, subdivision 4, is amended to read:

Subd. 4.

Data practices; open meetings.

deleted text begin Except as otherwise provided in this
chapter, deleted text end The authority is subject to chapters 13 and 13D.

Sec. 2.

Minnesota Statutes 2012, section 473J.11, subdivision 1, is amended to read:

Subdivision 1.

Contracts.

(a) The design, development, and construction of the
stadium shall be a collaborative process between the authority and the NFL team. The
authority and the NFL team shall establish a process to reach consensus on key elements
of the stadium program and design, development, and construction.

(b) Unless the authority and the NFL team agree otherwise:

(1) the authority shall create a stadium design and construction group, including
representatives of the authority and the NFL team, to manage the design of the stadium
and oversee construction;

(2) this group shall engage an owner's representative to act on behalf of the group.
The cost of the owner's representative shall be a stadium cost; and

(3) the authority and the NFL team shall enter into a development administration
agreement providing for rights and responsibilities of the authority and the NFL team, the
design and construction group, and the owner's representative for design and construction
of the stadium, including, but not limited to, establishment of minimum design standards.
This development administration agreement shall provide for binding arbitration in
the event that the authority and the NFL team are unable to agree on minimum design
standards or other material aspects of the design.

(c) The authority may enter into an agreement with the NFL team and any other
entity relating to the design, construction, financing, operation, maintenance, and use of
the stadium and related facilities and stadium infrastructure. The authority may contract
for materials, supplies, and equipment in accordance with section 471.345, except that
the authority may employ or contract with persons, firms, or corporations to perform one
or more or all of the functions of architect, engineer, construction manager, or program
manager with respect to all or any part of the design, construction, financing, operation,
maintenance, and use of the stadium and stadium infrastructure under the traditional
separate design and build, integrated design-build, construction manager at risk, or
public/private partnership (P3) structures, or a combination thereof.

To the extent practicable, the agreement must provide that at least 25 percent of the
materials, supplies, and equipment used in the construction, operation, maintenance, and
use of the stadium and related facilities and stadium infrastructure, other than the material
subject to section 473J.15, subdivision 11, paragraph (c), must be made or produced
by Minnesota businesses.

(d) The authority and the NFL team shall prepare a request for proposals for one or
more of the functions described in paragraph (c). The request must be published in the
State Register and shall include, at a minimum, such requirements that are agreed to by
the authority and the NFL team. The authority and the NFL team may prequalify offerors
by issuing a request for qualifications, in advance of the request for proposals, and select a
short list of responsible offerors prior to discussions and evaluations.

(e) As provided in the request for proposals, the authority, and the NFL team, may
conduct discussions and negotiations with responsible offerors in order to determine
which proposal is most advantageous to the authority and the NFL team and to negotiate
the terms of an agreement. In conducting discussions, there shall be no disclosure of any
information derived from proposals submitted by competing offerors deleted text begin and the content of all
proposals is nonpublic data under chapter 13 until such time as a notice to award a contract
is given by the authority deleted text end . The agreement shall be subject to the approval of the NFL team.

(f) Prior to the time the authority enters into a construction contract with a
construction manager or program manager certifying a maximum price and a completion
date as provided in paragraph (h), at the request of the NFL team, the authority may
authorize, such authorization not to be unreasonably withheld or delayed, the NFL team
to provide for management of the construction of the stadium and related stadium
infrastructure, in which event the NFL team must assume the role and responsibilities
of the authority for completion of construction in a manner consistent with the agreed
minimum design standards and design documents, subject to the terms of Laws 2012,
chapter 299, including responsibility for cost overruns.

(g) For each contract for supplies, materials, labor, equipment, or services for
the construction of the stadium or infrastructure, the construction manager or program
manager shall require: (1) that the contract specify a guaranteed maximum price; and (2)
if the amount charged under the contract is less than the guaranteed maximum price, the
authority shall pay as follows: (i) one-half of the difference to the contract holder; and (ii)
one-half of the difference to the state for transfer to the authority for capital reserves.

(h) The construction manager or program manager may enter into contracts with
contractors for labor, materials, supplies, and equipment for the construction of the
stadium and related stadium infrastructure through the process of public bidding, except
that the construction manager or program manager may, with the consent of the authority
or the NFL team if the NFL team has assumed responsibility for construction:

(1) narrow the listing of eligible bidders to those which the construction manager
or program manager determines to possess sufficient expertise to perform the intended
functions;

(2) award contracts to the contractors that the construction manager or program
manager determines provide the best value under a request for proposals as described in
section 16C.28, subdivision 1, paragraphs (a), clause (2), and (c), which are not required
to be the lowest responsible bidder; and

(3) for work the construction manager or program manager determines to be critical
to the completion schedule, award contracts on the basis of competitive proposals, or
perform work with its own forces without soliciting competitive bids if the construction
manager or program manager provides evidence of competitive pricing.

(i) The authority and the NFL team shall require that the construction manager
or program manager certify, before the contract is signed, a guaranteed maximum
construction price and completion date to the authority and post a performance bond in an
amount at least equal to 100 percent of the certified price or such other security satisfactory
to the authority, to cover any costs which may be incurred in excess of the certified price
including, but not limited to, costs incurred by the authority or loss of revenues resulting
from incomplete construction on the completion date. The authority may secure surety
bonds as provided in section 574.26, securing payment of just claims in connection with
all public work undertaken by the authority. Persons entitled to the protection of the
bonds may enforce them as provided in sections 574.28 to 574.32 and are not entitled to a
lien on any property of the authority under the provisions of sections 514.01 to 514.16.
The construction of the stadium is a project as that term is defined in section 177.42,
subdivision 2, and is subject to the prevailing wage law under sections 177.41 to 177.43.
The authority's contract with the construction manager or program manager shall provide
that if the construction manager's or program manager's fees charged under the contract
are less than the guaranteed maximum price, the authority shall pay: (1) one-half of the
difference to the contract holder; and (2) one-half of the difference to the state for transfer
to the authority for capital reserves. Costs or fees above the agreed guaranteed maximum
price shall be the responsibility of the construction manager or program manager.

Sec. 3.

Minnesota Statutes 2012, section 473J.15, subdivision 6, is amended to read:

Subd. 6.

Enforceable financial commitments.

The authority must determine before
stadium construction begins that all public and private funding sources for construction,
operating expenses, and capital improvements and repairs of the stadium are included in
written agreements. The committed funds must be adequate to design, construct, furnish,
and equip the stadium, and pay projected operating expenses and the costs of capital
improvements and repairs during the term of the lease or use agreement with the NFL
team. The NFL team must provide the authority access to NFL team financial or other
information, which the authority deems necessary for such determination. deleted text begin Any financial
information obtained by the authority under this subdivision is nonpublic data under
section 13.02, subdivision 9.
deleted text end

Sec. 4.

Minnesota Statutes 2012, section 473J.15, subdivision 9, is amended to read:

Subd. 9.

Authority's access to NFL team financial information.

A notice
provision for a material breach shall be agreed to between the authority and the NFL team.
In the event there is a material breach by the NFL team under the lease or use agreement,
the lease or use agreement must provide the authority access to audited financial statements
of the NFL team and other financial information that the authority deems necessary to
enforce the terms of any lease or use agreements. deleted text begin Any financial information obtained by
the authority under this subdivision is nonpublic data under section 13.02, subdivision 9.
deleted text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective the day following final enactment.
new text end