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    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.
(b) "Boards" mean the Board of Directors of the Minnesota State Retirement System, the
board of trustees of the Public Employees Retirement Association, and the board of trustees of the
Teachers Retirement Association.
(c) "Commissioner" means the commissioner of administration.
    Subd. 2. Building; related facilities. (a) The commissioner of administration may provide a
building and related facilities to be jointly occupied by the board of directors of the Minnesota
State Retirement System, the board of trustees of the Public Employees Retirement Association,
and the board of trustees of the Teachers Retirement Association for the administration of their
public pension systems.
(b) Design of the facilities is not subject to section 16B.33. The competitive acquisition
process set forth in chapter 16C does not apply if the process set forth in subdivision 3 is followed.
(c) The boards and the commissioner must submit the plans for a public pension facility
under this section to the chair of the house Ways and Means Committee and to the chair of the
senate State Government Finance Committee for their approval before the plans are implemented.
    Subd. 3. Contracting procedures. (a) The commissioner may enter into a contract for
facilities with a contractor to furnish the architectural, engineering, and related services as well
as the labor, materials, supplies, equipment, and related construction services on the basis of a
request for qualifications and competitive responses received through a request for proposals
process that must include the items listed in paragraphs (b) to (i).
(b) Before issuing a request for qualifications and a request for proposals, the commissioner,
with the assistance of the boards, shall prepare performance criteria and specifications that include:
(1) a general floor plan or layout indicating the general dimensions of the public building and
space requirements;
(2) design criteria for the exterior and site area;
(3) performance specifications for all building systems and components to ensure quality
and cost efficiencies;
(4) conceptual floor plans for systems space;
(5) preferred types of interior finishes, styles of windows, lighting and outlets, doors, and
features such as built-in counters and telephone wiring;
(6) mechanical and electrical requirements;
(7) special interior features required; and
(8) a completion schedule.
(c) The commissioner shall first solicit statements of qualifications from eligible contractors
and select more than one qualified contractor based upon experience, technical competence, past
performance, capability to perform, and other appropriate facts. Contractors selected under this
process must be, employ, or have as a partner, member, coventurer, or subcontractor, persons
licensed and registered under chapter 326 to provide the services required to design and complete
the project. The commissioner does not have to select any of the respondents if none reasonably
fulfill the criteria set forth in this paragraph.
(d) The contractors selected shall be asked to respond to a request for proposals. Responses
must include site plans, design concept, elevation, statement of material to be used, floor layouts, a
detailed development budget, and a total cost to complete the project. The proposal must indicate
that the contractor obtained at least two proposals from subcontractors for each item of work and
must set forth how the subcontractors were selected. The commissioner, with the assistance of
the boards, shall evaluate the proposals based upon design, cost, quality, aesthetics, and the best
overall value to the state pension funds. The commissioner need not select any of the proposals
submitted and reserves the right to reject any and all proposals, and may terminate the process or
revise the request for proposals and solicit new proposals if the commissioner determines that the
best interests of the pension funds would be better served by doing so. Proposals submitted are
nonpublic data until the contract is awarded.
(e) The contractor selected must comply with sections 574.26 to 574.261. Before executing a
final contract, the contractor selected shall certify a firm construction price and completion date.
(f) The commissioner may consider building sites in the city of St. Paul and surrounding
(g) Any land, building, or facility leased, constructed, or acquired and any leasehold interest
acquired under this section must be held by the state in trust for the three retirement systems as
tenants in common. Each retirement system fund must consider its interest as a fixed asset of its
pension fund in accordance with governmental accounting standards.
(h) The commissioner may lease to another governmental subdivision, to a private
company under contract with the State Board of Investment, or with the Board of Directors of
the Minnesota State Retirement System, whichever applies, to provide deferred compensation
services under section 352.96, any portion of the funds' building and lands that is not required
for their direct use upon terms and conditions they deem to be in the best interest of the
pension funds. Any income accruing from the rentals must be separately accounted for and
utilized to offset ongoing administrative expenses and any excess must be carried forward for
future administrative expenses. The commissioner may also enter into lease agreements for the
establishment of satellite offices should the boards find them to be necessary in order to assure
their members reasonable access to their services. The commissioner may lease under section
16B.24 any portion of the facilities not required for the direct use of the boards.
(i) The boards shall formulate and adopt a written working agreement that sets forth the
nature of each retirement system's ownership interest, the duties and obligations of each system
toward the construction, operation, and maintenance costs of its facilities, and identifies one
retirement fund to serve as manager for operating and maintenance purposes. The boards may
contract with independent third parties for maintenance-related activities, services, and supplies,
and may use the services of the Department of Administration where economically feasible
to do so. If the boards cannot agree or resolve a dispute about operations or maintenance of
the facilities, they may request the commissioner of administration to appoint a representative
from the department's real estate management division to serve as arbitrator of the dispute with
authority to issue a written resolution of the dispute.
    Subd. 4. Revenue bonds. The commissioner of finance, on request of the governor, may
sell and issue revenue bonds in an aggregate principal amount up to $38,000,000 to achieve the
purposes described in subdivisions 1 and 2, plus the amount needed to pay issuance costs and
interest costs and to establish necessary reserves to secure the bonds. The commissioner of finance
may issue bonds for the purpose of refunding bonds issued under this subdivision. The bonds may
be sold and issued on terms and in a manner the commissioner of finance determines to be in the
best interests of the state. The proceeds of the bonds must be credited to a bond proceeds account
in the pension building fund which the commissioner of finance must create in the state treasury.
    Subd. 5. Security. The boards may pledge any or all assets of the boards as security for the
bonds. The bonds and the interest on them must be paid solely from and secured by all assets
of the boards pledged and appropriated for these purposes to the debt service fund created
in subdivision 6 and any investment income on the fund and any reserve established for this
purpose. The bonds are not public debt, and the full faith, credit, and taxing powers of the state
are not pledged for their payment. The bonds and the interest on them must not be paid, directly
or indirectly, in whole or in part, from a tax of statewide application on any class of property,
income, transaction, or privilege.
    Subd. 6. Debt service fund. There is established in the state treasury a separate and special
pension building debt service fund. Money in the funds managed by the boards is appropriated
to the boards for transfer to the pension building debt service fund. Money appropriated and
transferred to the fund and investment income on it on hand or required to be transferred to the
fund must be used and is irrevocably appropriated to pay when due the principal of and interest on
the bonds authorized in subdivision 4.
    Subd. 7. Covenants; agreements. The commissioner of finance may, for and on behalf of
the state, enter into covenants and agreements not inconsistent with subdivisions 1 to 6 as may
be necessary or desirable to facilitate the sale and issuance of the bonds on terms favorable to
the state, including, but not limited to, covenants and agreements relating to the payment of and
security for the bonds, tax exemption, and disclosure of information required by federal and state
securities laws. The covenants and agreements of the commissioner of finance constitute an
enforceable contract of the state and the state pledges and agrees with the holders of any bonds
that the state will not limit or alter the rights vested in the commissioner of finance to fulfill the
terms of the covenants or agreements made with the holders of the bonds, or in any way impair the
rights and remedies of the holders until the bonds, together with the interest on them, with interest
on any unpaid installments of interest, and all costs and expenses in connection with any action or
proceeding by or on behalf of the holders, are fully met and discharged. The commissioner of
finance may include this pledge and agreement of the state in any covenant or agreement with the
holders of the bonds. Sections 16A.672 and 16A.675 apply to the bonds.
History: 2002 c 392 art 11 s 51

Official Publication of the State of Minnesota
Revisor of Statutes