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279511A WMITE - CITY CLERK .�J'� /�� PINK - FINANCE COUflCll N� al CANARY - DEPARTMENT G I T Y O F S A I N T PA U L - BLUE - 1NAYOR . Flle N O. r /,Council Resolution �Presented By �°%'�'�� Referred To Committee: Date Out of Committee By Date WHEREAS , Section 103(k) of the Internal Revenue Code of 1954, as amended (the "Code") , requires that all industrial revenue bonds issued after December 31 , 1982 satisi`y certain public approval requirements prior to th�ir issuance; and WHEREAS, the Port Authority of the City of Saint Paul (the "Authority") is seeking a curative legislative amendment to the Code or regulation or ruling of the Internal Revenue Service to provide that approval by the Mayor or the City Council of �he City of Saint Paul of any industrial development bonds issued by the Port Authority after December 31 , 1982 will satisfy said public approval requirements; and "WHEREAS, Laws of Minnesota, 1976, Chapter 234, currently requires that the City Council approve all revenue bonds of the Authority prior to their issuance, and for purposes of giving such approval the City Council has relied upon the Authori�y to conduct a public hearing on the proposed financing and to file with the City a repor� before �he City Council takes action to approve or disapprove of the bond issue; and it would be in the best interests of the City and the Port Authority �hat this procedure continue to be followed on behalf of the Mayor and the Ci�y Council whether or not the approval of the Mayor or the City Council is secured for purposes of' satisfying the public approval requirements of Section 103(k) of the Code; and "L�JHEREAS, the Authority is a political subdivision created by the State of Minnesota, Minesota Statutes Chapter 458, effective in 1932 upon adoption of an ordinance by the City of Saint Paul appointing the first members of the Board of Commissioners of the Port Authority, and from and af�er its creation in 1932, all Commissioners of the Port Au��hority have been appointed by the �ayor with the approval of the City Counci1 and two of �he Commission�rs have at all times been members of �che City Council , a11 as required by Minnesota Statutes Chap�er - 458; and pursuant to Laws of flinneso�a, 1976, Chapter 234, all revenue bonds of the PorL Au�hority issued from and after Apri1 9, 1976 have prior to their issuance been approved �y �h� City Council . �, NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul , as follows: ° COUNCILMEN Yeas Nays Requestgd by Department of: Hunt Levine In Favo[ Maddox McMahon B snowaiter __ Against Y — Tedesco Wilson Form Approved by City Attorney Adopted by Council: Date — Certified Passed by Council Secretary BY By. Approved by ;Vlayor: Date _ Approved by Mayor for Submission to Council BY - – — By WMITE - CITY CLERK 2'79511 �! PINK - FINANCE COU[ICII CANARY - DEPARTMENT G I TY OF SA I NT PA LT L BLUE - �MAYOR � FlI@ N O. a- Council Resolution Presented By m'�f; ��' Referred To Committee: Date Out of Committee By Date a. For purposes of conducting the public hearing required under Section 103(k) of the Code, the appointment of the Authority to act as agent of the City of Saint Paul at such time as -the Authority conducts the public hearing undertaken by the Authority under Minnesota Statutes , Chapter 474 with respect to all revenue bonds which are "industrial development bonds" within the meaning of Section 103(b) of the Code and which may hereafter be issued after December 31 , 1982, is hereby ratified and affirmed in all respects. ' b. The Mayor and the Director of the Department of Finance and Man��ement Services are hereby authorized and directed to execute on behalf of the City an Agency Agreemen�, a form of which has heretofore been presented to the City Council and is hereby approved. c. The power of the (�ayor to appoint and of the City Council to approve all members �of the govern�ng body of the Port Authority and the requirement that two such members also be members o� the City Council and that the City Council approve prior to their issuance all revenue bonds issued by the Port Authority provides a reasonab1e basis for concluding, and it is hereby determined that, solely for purposes of satisfying the public approval requirement set forth in Section 103(k) of the Code, a71 industrial development bonds hereafter issued by the Authority are issued "on behalf of" the City of Saint Paul within the meaning of Section 103(k) (2) (A)(i ) (II) of the Code and that the public hearing conducted_on the bond issue by the Port Au�thority on beha1f of the City as herein provided and -�he approva1 of the bond issue by the City Council of after the public hearing and before issuance of the bonds satisfies the pub1ic approval requirements of Section 103�k) of the Code. COUNCILMEN Yeas Nays Requestgd by Department of: Hu t � �ev� e � In Favor Mad �8Y1� McM n MassrR � Against BY Sho I r - T esco Nicosia dson � T�� 3 Q ,9a2 Form App City Attorney Adopted by Council:W{� Date � Certified P : Counc� . BY gy Y��— � Approved by Vlay . Da e DEC 1981 APP� d by Mayor for S i io Council By - IG.o I ��1 � PORT AUTNORITY OF THE CITY OF SAINT PAUL 25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN. 55102 • PHONE (612) 224-5686 October 19, 1982 The Honorable George Latimer Mayor City of St. Paul and Members of the Ci ty Counci 1 City Hall and Court House St. Paul , Minnesota 55102 RE: PORT AUTHORITY OF THE CITY OF SAINT PAUL - PUBLIC APPROVAL REQUIREMENT OF INTERNAL REVENUE CODE OF 1954, AS AMENDED Dear Mayor Latimer and Members of the City Council : Section 103(k) of the Internal Revenue Code of 1954, as amended (the "Code") , requires that all industrial revenue bonds issued b�► �he Port Authority after December 31, 1982, satisfy certain public approval requirements prior to their issuance. The Port Authority islseeking a curative legis1ative amendment to the Code or regulation or ruling of the Interna1 Revenue Service to provide that approval by �he Mayor or the City Council of the City af Saint Pau1 of any such industrial revenue bonds will satisfy said public approval requirements. Such an approach is consistent with Laws of Minnesota, 1976, Chapter 234, which currently requires that the City Council approve all revenue bonds of the Authority prior to their issuance. We respectfully r�quest your support in securing relief which we think is most consistentiwith existing practice. As bond counsel to the City and to the Port Authority, Briggs and Morgan has advised us that the Port Authority's efforts would be best served if the City Council adopted the enclosed proposed Resolution and approved the enclosed proposed Agency Agreement referred to tlherein. The Resolution and Agency Agreement are intended to give support to the Port Authority's position that the current practice followed by the Port Authority under existing law should satisfy the public approval require- ments of Section 103(k) of the Code. If the City Council adopts the Resolution, the Port Authority will , of course, adhere in any event to its current practice of securing from the City Council �pproval of a11 Port Authority bonds prior to their issuance. ROBERT F. SPRAFKA EUGENE A KRAUT,C.I.D. DONALD G. DUNSHEE, C.I.D. CLIFFORD E. RAMSTED RONALD O. SCHETfLE EXECIJ�NE VICE PRESIDENT GENERALMANAGERAND DIRECTOR,INDUSTRIAL DEVELOPMENT CHIEF ENGMEER CHIEF ACCOUNTANT ASST.ExEC.VICE PRESIDENT COMMISSIONERS GEORGE W.WINTER WILLIAM WILSON ARTHUR N. GOODMAN VICTOR P. REIM JEAN M. WEST CHRIS NICOSIA WILLIAM J. SEIFERT PRESIDEM VICEPRESIDENT SECRETARV TREASURER C,I.D, Certified Industrial Developer lG�l �� /`! o0y�1TY�. ,y CITY OF SAINT PAUL � OFFICE OF THE CITY ATTORNEY m iitt�ll��li r � „ EDWARD P. STARR, CITY ATTORNEY �ed. 647 City Hall,Saint Paul,Minnesota 55102 612-298-5121 GEORGE LATIMER MAYOR November 1, 1982 ' '�� . " ��'"�'�Z �4,�.� Y L 6 �v, . r.��2 W.''..... MEMORANDUM TO: Greg H p , Director of Management FROM: , Assistant City Attorney RE: ort Authority IDB Issues Council Resolution and City Agency Agreement The 1982 amendment adding �103k to the Internal Revenue Code of 1954 requires public approval of tax exempt IDB issues by an elected representative-legislative body or chief executive officer of�the issuing and jurisdictional govern- mental unit or units, and where a governmental unit has no applicable elected representative, approval by an elected representative of the next higher governmental unit, and that from which the authority of the governmental unit with no representative is derived. Port Authority bond counsel has submitted an Agency Agreement whereby in substance the Authority public hearing required under Chapter 474, Minnesota Statutes , and City Council approval under Chapter 234, Laws of Minnesota 1976, would constitute the public hearing and public approval requirements under Section 103k. As the Housing and Redevelopment Authority Board is the elected City Council, bond counsel considers that the applicable elected representative require- ment of �103k is met in the case of HRA IDB issues. JH:db �.�;,�.��»; 2'79511� �``�`�- c��.�,��> �� C�a-�,,+�� 1Y--=--,�.,.-� 6 ��. PORT AUTHORITY OF TNE CITY OF SAINT PAUL 25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN. 55102 • PHONE (612) 224-5686 October 26, 1982 ____..�_ __ _ _ ..t, F m.. . . . ll :,J a . . .�. ..�� The Honorable George Latimer :_�:�:.�'�::. _, Mayor Ci ty of St. Paul City Hall and Court House St. Paul , Minnesota 55102 Dear Mayor Latimer: The language that was incorporated in the new enabling 1egislation also impacts numerous other significant authorities throughout the United States. It is our understanding that it would include the Metropolitan Airports Corr�nission, the Port Authority of Duluth, the New York Port Authority, and others. We anticipate that because of this impact on several large issues of bonds that appropriate steps will be taken to correct the error. We would appreciate your assistance in this matter to provide us with the necessary authority to continue to operate as we have been under present Minnesota 1egislation. �`��Yours truly, � .`�..�.�..�.,� Eugene A. Kraut General Manager EAK:jmo ROBERT F. SPRAfl(A EUGENE A. KRAUT,C.I.D. DONALD G. DUNSHEE, C.I.D. CLIFFORD E. RAMSTED RONALD O. SCHEffLE EXECUfNE VICE PRESIDEM GENERA�MANAGERAND DIRECTOR.INDUSfRIA1 DEVEIOPMENi CHIEF ENGINEER CHIEF ACCWMANT ASST.EXEC.VICE PRESIDEM COMMISSIONERS GEORGE W.WINTER WILLIAM WILSON ARTHUR N. GOODMAN VICTOR P. REIM JEAN M.WEST CHRIS NICOSIA WILLIAM J. SEIFERT PRESIDENT VICE PRESIDENT �a�T�V TRFASURER C.I.D, Certified Industrial Developer �"19511 ,q The Honorable Albert H. Quie October 19, 1982 Page -2- Until such curative action is taken, however, our bond counsel has advised that as a stop-gap all Port Authority industrial development bonds that may be issued after December 31 , 1982, should , prior to their issuance, be approved by either you, the Attorney General or any other state elected official designated by you and that for purposes of giving such approval , you should by executive order designate the Port Authority of the City of Saint Paul to act as an aqent of the State for purposes of conducting the public hearing on the projects. To remain consistent with the procedures already set forth under Ftinnesota law, we propose that approval of the bond isse by you or your designee only be requested if and after the Commissioner of Energy, Planning and Development of the State of Minnesota has approved the project to be financed by the bonds , in accordance with Minnesota Statute 474. Our bond counsel , Briggs and Morgan, Professional Association , has drafted a proposed executive order and agency agreement to be entered into between the State of Minnesota and the Port Authority, designed to implement this stop-qap measure. The Port Authority of the City of Saint Paul is currently in the process of scheduling public hearings for revenue bonds which may not be issued before the end of this year. In order to avoid duplication of effort and any untimely disruption of the Port Authority's financing program, we respectfully request that you take action on this �matter at your earliest convenience. We will , of course, be more than happy to have our representatives discuss this matter with you and your counsel at any time which is convenient to you. 1 , � Very �ruly you�s, � J / • / /i _ �i � // � - -1 �r �� :�---_ / George W. Winter President � 2'79511 �}- � PORT AUTHORITY OF THE CITY OF SAINT PAUL 25 WEST FOURTH STREET • SUITE 1305 • ST. PAUL, MINN. 55102 • PHONE (612) 224-5686 ^-�-�-- ,,, ,,,�., ^+�rJ��1 � The Honorable George Latimer and Members of the City Council October 19, 1982 Page -2- We will be more than happy to have representatives of the Port Authority further discuss this matter with representatives of the City at any appropriate time. Very��y yo rs � ` `C� �' �c� �g W. Winter Pre dent � . �� /D�3�,� � - � 2'7951 �- (9) which is recuirec (by wri�tzn agr�emezt) by t:�e political su�divisicn to f�.:rnish fir�=ignt- • ing servic�s in such ar�a. (j ) Obligations must be in r�glste*ed form to oe tax- exempt. -- tl) In general . --. Votning in subsection (a) or in any other provision of 1aw shall be constzuea tc provide an exemption from Federal income �3x for in*_�:est cn anv registraticn-reuuirea obligacion unless t:�e obligation is ia registeres3 fcrm. (2� Registration-required ob].igation. -- T:�e ter�n "registered-required obligativn" means any obl.igation other than an obligation which -- ' i (A) is net of a ty�e offered to the publ c1 �! (B) has a m�atur i ty (at issue} o� not mor� t!�an I 1 year , or ' 1 . (C) is described i.z section 163 (f) (2) (3) . � - � ( i 3) Special rul.es . -- i � (A) Book entries cer:nitted. -- For ��rr_�oses of � paragrana (Z) , a bcok �ntry obligation shal� be . treated as in regis�er�d :orm if the richt �o the ; arincipal of , and stated int��est on , such obligativn may be tr�nsze�rea onl� throucn a booic ; entry consistent wit:� :egulations �resc�ibe� by the , Secretary. � (3) Neminees . -- T`�e Sec:et3r•� s;�all cresc:ibe � such regulations as may �e �ec�ssary te carrv cut t:�e pur:ose of oaragra�n (1) wnere taere :�s a nomi:�ee or c:�ain oi ncmi�e�s . . .�—... (k) Punlic approval for indus:.riai deveio_ment �onds . � (1) In General . -- Votwit'�stancing subsection !b} , an i^dustria:. cev.e�ccr�ent :or.d shal? �e treatec as an obliga�ion zot c�esc�ibea in sucszc�ion (cZj 11�°SS _z� ' r�eui_�mencs of �aracra_n (2; of �ais sucsec:.:c.. are sacis�:ec. � 2_ • \ _ , (2) Publ.ic agprova? ==_cuirement. -- � � (A) In general . -- an obligation shal?. satisiy � the recuire:nents or t:zis paragra�h iL sc:c!� �, iobligation is issued as a ?art oi an issue wnic:� ' , has been acnroved by - (i) the gove:��aentai u^it -- (I) whic:: issued suc:: obli,ation, or (II) on behalf of �ahic:: suc:� obligation was issued, anc (ii) eac:� gove�nmental u:zit having jurisdiction over the area in wnicz any facility , with respect to whica financing is ; to be provided From the proce�ds of suc:� issue, is locat�d (except t:�at if more tban 1 govesr.mental uni t ��i thin a S ta�z zas jur is- diction over the e:�tire area wi�hin suca ' ' State in whica suc:z facility is iocated, onl� _ � \ � 1 sueh unit need anprove such issue. � � (B) Apnroval by a gover:unental uni t. -- r or purgoses og subparagrapn (�1 , an issue sha.L�. be treated as havizg heen aporovec �y any gover�uaental. unit if suc� issue is approvec -- {i) by the agalicable eZect�d repre- ; sentacive o= sucn goverzL*aental uni� aft�r a public nearing _allowiag :easonable public notice , or - (ii) bv vot�r referendc:m ef s�c: � gover:uaenta? uni t. • � (C) Spec-al �sles fer ap�rova: oz :acili_y. -- I� the_e has been oubl?c aonrova� 1AC@* Sl2DC3�a- grape (a) o= tae plan oi zir.ancin� a �acil:cy, suc:� accroval szall c�r.s�ics�� ac�rcval ur.cer : sucparagrapn (a) �cr any issue -- ; . . � (i) waicz :s issued pursuant to suc:. � �I.an .ait^ia 3 years a��r �:�e CdL? o= �:e � � I •`i:s� issue :u:suar.t _o _`.:e ap�rova? , and � 4_ r . , , i � , (ii) all or substaztiai�yr al.l of tne proceeds ot� whiciz 3re to �e used to Financ� such facility or to re:unci orevious �inancing under such plan. 1 (D) Refunaing obligations . -- No acorova? I under subparagraph (a) shall be necessary with ` respect to any obligation whic:� is issued to , refund an obligation approvea unde= subparagraph { (a) (or treated as approved under subparagraph ! (C) ) unless the macurity date of suca obligation � is later than the :natur i�y date of the obl.igatio� � to be r ef unded. f � (E) Applicabl.e elected representative . -- Fcr I purposes of this paragraph -- � I (i) In general. -- The term "aFFlicable elected representative" means with respect to any gvverr�ental sni t -- ( I) an elected legislative body of � such unit, or �_ - (IZ) the c!�ief elected executive � � of f icer , t::e chi ei electec S tate Iegal. cfficer of the executive branc:� , or any other e?ec�ed official of suc�i unit designat_d for �ur�oses of t:�is garagraph � by such caie� electeo execsti��e offic�r � or by State law. i � (ii) Yo applicable elected representative . � -- If (but for �his clause) a governmental � unit has no applicable e?ec�ec re�- f resentative , the apcl�caole e?ec�ed repre- � ssntative for purpcses oz clause (i) sna11 oe ::�e applicable elec��d rerresentative oz t�e ' go ve r:uaen�al :u�i t -- � ( I) whic"� is t:�e ^ext hic�:er governmental �1nit witz s�:c^ a rep- resentati�Je , �nc (II) �rcm �aica t::e ac:�^cri. _•� ot �1e gcver-±nen��. �sni� ��i�� ^o suc:: � r�prese^�at:ve :s derivec. i � � �� 4 � R , 2'��511 �- I (iI'1`Y U�� ,� �7 �i'P �1�.U L .., �� ± ,: - OF'FiC� �F '1H� CITY COUNCIL «.,,,.:: , , 'Q""_'�'' D o t e : " November 19, 1982 � COMM (TT � E RE PORT TO � Saint Pau l City Councit F R� � = C o m t�n i t t e e O[1 Finance, Management F, Personne 1 _ C H A I R James Scheibel . � . . � _- 2. Reso2ution enabling the 2ibraries o spend additional revenue received in 1982. � (Community Services) '. . - • - i 3: Resolutioh allowing the libraries to spend 198I f'vnd balance and increased 1982 � interest income� for needed books and materials_ (Community Services '� �' � 4. Resolution adopting the Revenue Sharing Budget under tYhich we operate entered � on the City's financial records. (Finance Dept.) --= ��-.- . � � 5. Resolution authorizing additions to the 1982 Speciat Projects - Police � _ _ _ Rudoet. (Police Dept.) - , � '-��-�� 6. Re�olution adopting the Severance Pay Budget urcder which we operate entered on- ' � . the City's financial records. (Finance Dept.) � ��.�i�� • . � 7. Resolution adopting the Revenue Sharing Budget under �rhich we are oper.ating entered � on the 4ity�s financial records. (Finance Dept.) �"�[i� : . . �`�w :::� ,?�� . � 8. Resolution enabling the Iibraries to spend roney received in 1982 and 1983 from ' the Friends of the Library for specified projects. (Community Services) ��"�� ► 9. Resolution enabling the Libraries to spend the 1981 Fund Balances and 1982 ' Grants on the specific projects for which the money was received. (Comr�unity Ser��Y:�� , 1Q. Resolution abolishing numerous vacant titles in Sections of the Civil Service Rules. � (Personnel) �:��-��' . �.��._� -� lI. Resolution establishing the Salary Plan and.Rates of Co ensation Resolution for � ' -- the new title of Clinic Dentist. (Personnel.) _ . __ ` .. _2. Resolution establishing the title of Clinic Dentist�.and a class specification Ferson c . �� `�3 � 13. Resolution making the certification process more flexible (Personnel)� �_;�=�U ' ��--- . -. � 14. P.esolution replacing the class specification for Fire Equipment Operator (Personnel.)(9�a O 15. Resolution approving Special Intermediate School District No. 916 as a full contributing participant of our Joint Purchasing Office. (Finance/Purchasing�-•a�� ' CIE./ Fesolution approying current Port Authority practices in holdinjR� iblic hearinos � reouired by law in the issuance of bonds. _ � (Finance) __ '--, _- ��, 17. Resolution approving an agreement�with ISD �625 providing various police servic� for the elementary school patrol program (Police Dept.) ��.��-fl� 18. Resolution approving two budgetar�actions for the Housing 7nformation Office (Housing Information Office)�:�"= `�--�.-��