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276881 Vy` E - CITY CLERK ��j�� P •� FINANCE COUflC1I ��'-�- - C ARY - DEPARTMENT G I T Y O F S A I N T PA U L BLUE - MAYOR File N O. Council Resolution Presented By - –��-� Referred To Committee: Date Out of Committee By Date WHEREAS, the City of Saint Paul (the "City") is a leader in developing programs to encourage and achieve maximum energy conservation by its businesses and residences, and WHEREAS, the City recognizes the concerns of the Committee of One-Hundred, which was established in August of 1979 by the Mayor to identify methods by which the City could reduce its dependence on non-renewable energy resources, and WHEREAS, staff of the City's Energy Office and the Department of Planning and Economic Development, Housing Division, have cooperatively developed a low-cost home improvement loan program to assist city residents and owners of rental property to undertake energy conserving home improvements, and WHEREAS, Minnesota Laws 1980, Chapter 579, and an order of the Minnesota Public Utilities Commission dated December 31, 1980, requires Northern States Power Company to provide assistance to its customers to encourage conservation of non-renewable energy resources, and WHEREAS, the Saint Paul City Council, in recognition of the City's stated energy conservation goals, authorized City staff on January 27, 1981, to submit an Urban Development Action Grant ("UDAG") to the U. S. Department of Housing and Urban Development ("HUD") to secure supplemental funding for the newly developed low-cost energy home improvement loan program, and WHEREAS, on December 17, 1980, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") appointed Briggs and Morgan to act as bond counsel for the Saint Paul Energy and Housing Rehabilitation Program (the "Program") and further directed the staff to negotiate the parameters of the Program, and WHEREAS, on January 28, 1981, the HRA appointed Evensen-Dodge to act as fiscal consultant for the Program, and COUNCILMEN Yeas Nays Requestgd by Department of: Hunt _evine In Favor daddox McMahon B snowaiter __ Against Y — �– wi�son Form Approved by City Attorney Adopted by Council: Date Certified Va,secl-by Coue�� Se��Ptayy BY B;� _ ' _-- --- �— A �� •�y_:Navor: Approved by Mayor for Submission to Council PF'�`- By. BY , �..; � , Page Two - ,��"�� WHEREAS, the HRA staff entered into negotiations with Northern States Power Company to coordinate energy conservation home loan programs to achieve maximum use of available funds, and WHEREAS, the HRA's participation in the Program will maximize assistance to the City's residents and provide special assistance to residents with low and moderate incomes, and WHEREAS, the Minnesota Public Utilities Commission, by order of April 3, 1981, authorized NSP to participate with the City to establish a joint energy conservation residential loan program, and WHEREAS, the order of the Public Utilities Commission, dated April 3, 1981, authorized the joint program contingent upon, 1) the City receiving legal authority under Minnesota law to issue tax exempt revenue bonds for the stated program, 2) the City receiving a commitment from HUD to fund the UDAG or some other source of supplemental funding and, 3) authorization from the Saint Paul City Council to enter into an agreement with Northern States Power Company; all to be secured before the adjournment of the 1981 session of the Legislature, and WHEREAS, HUD has notified the City that consideration of the UDAG has been delayed until the second quarter of 1981, which ends June 30, 1981, and WHEREAS, the City Council by its previous actions (Council File 276404 adopted February 19, 1981) conditioned the City's participation in the joint program on receipt of the UDAG grant or some other source of supplemental financing and receipt of legal authority under state law to issue tax exempt revenue bonds to finance the program, and WHEREAS, special legislation has been enacted by the Legislature and which is expected to be signed into law by the Governor which grants the City legal authority to issue tax exempt revenue bonds for the Program, and WHEREAS, staff has recommended to the City Council a revised Program based on the delay in consideration of the UDAG grant application, and WHEREAS, staff has recommended that the HRA enter into a two-phased joint program, whereby the HRA would authorize its participation with NSP of up to $1 million in tax exempt bonds, and at such time as the UDAG is approved or rejected, enter into the remainder of the program of up to $4 million in additional tax exempt financing for the single-family, owner-occupied portion of the program and of up to $7 million in tax exempt financing for the multi-family, rental portion of the program, and WHEREAS, Northern States Power Company has requested from the City a commitment to proceed with the joint program even without current approval of the UDAG application, and WHEREAS, the two-phased, modified program will allow the Program to remain on schedule with respect to the delay in UDAG consideration, while maintaining the maximum coordination of City, HRA and NSP resources, , ��.,�� r , ... Page Three - 'THEREFORE, BE IT RESOLVED, that the City Council of the City of Saint Paul, 1) Grants preliminary authorization for the issuance of $1,000,000 of revenue bonds (the "Bonds"), which may be in the form of a single debt instrument, to be issued by the HRA to finance, in part, the Program, subject to the following conditions: ' a) Passage, approval and acceptance of the special legislation (Senate File No. 763 as amended) which grants the City legal authority to issue the Bonds to finance, in part, the Program. b) Passage of the Ordinance required to be adopted by the City pursuant to the terms of the special legislation. c) Final approval by the HRA and Northern States Company as to the ultimate details of the financing of the Program and as to its ultimate qualification under applicable state and federal laws. 2) Directs staff to actively pursue the UDAG grant and to examine all other sources of program revenue and assistance, and 3) Directs the staff of the HRA, which shall have the primary responsibility (with assistance from the staff of the Energy Office and the City Attorney's Office) to negotiate the parameters of the Program and/or of the energy retrofitting program with the various interested parties and to present the Program proposals to the HRA Board for its consideration and approval as they are completed. 4) Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues of the Program or such other revenue granted to the HRA for this purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the HRA or the City except the revenue and proceeds pledged to the payment thereof, nor shall the HRA or the City be subject to any liability thereon. The holder of the Bonds shall never have the right to compel any exercise of the taxing power of the HRA or the City to pay the outstanding principal on the Bonds or the interest thereon, or to enforce payment thereof against any property of the HRA or the City. The Bonds shall recite in substance that the Bonds, including interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The Bonds shall not constitute a debt of the HRA or the City within the meaning of any constitutional or statutory limitation. WHITE - CITY CLERK ((('''�� /� P�NK , .- FINANCE ��y� C NARY - DEPARTMENT G I T Y O F S A I N T PA U L COUIICII �J BLUE - MAYOR File N . Council Resolution Presented By Referred To Committee: Date Out of Committee By Date Page Four - 5) Nothing in this resolution shall be construed to require that the City accept the special legislation, if and when passed and approved, or require that the City pass the Ordinance required thereunder, or require that the HRA give its final approval to the issuance of its tax exempt revenue bonds. COUKCILMEN Yeas Nays Requestgd by Department of: �unt �� Levine J [n Favor � Maddox �McMahon B `snowaiter __ Against Y — r•acl�ed Wilson/ �� 9 �� Form Approve by C� ne Adopted by Council: Date - - Certified Yass by Council Secre r� B ` �" �£� /'' �� B -- App v by :Navor: t Y 2 6 �� Approved by Mayor for Submission to Coun il � By BY PUBLISHED M AY 3 0� -- - - r--- - -- - - - _ _ - - --- --- -- - - - _ WMIT6 - CiTY CL6RK r11�K - FINqNCE CANARY - DEPARTMENT COIIlICII ewc - MwroR GITY OF SAINT �AUL ,� � . File N0. �� _ Council Resolut�on . Presented By _ ��-,� ,r Referred To Committee: Date Out of Committee By Date WHEREAS, the City of Saint Paul (the "City") is a leader in developing programs to encourage and achieve maximum energy consecvation by its businesses and residences, and WHEREAS, the City recognizes the concerns of the Committee of One-Hundred, which was established in August of 1979 by the Mayor to identify methods by which the City could reduce its dependence on non-renewable energy resources, and WHEREAS, staff of the City's Energy Office and the Department of Planning and Economic Development, Housing Division, have cooperatively developed a low-cost home improvement loan program to assist city residents and owners of rental property to undertake energy conserving home improvements, and WHEREAS, Minnesota Laws 1980, Chapter 579, and an order of the Minnesota Public Utilities Commission dated December 31, 1980, requires Northern States Power Company to provide assistance to its customers to encourage conservatian of non-renewable energy resources, and WHEREAS, the Saint Paul City Council, in recognition of the City's stated energy conservation goals, authorized City staff on January 27, 1981, to submit an Urban Development Action Grant ("UDAG") to the U. S. Depactment of Housing and Ur6an Development ("HUD") to secure supplemental funding for the newly developed low-cost energy home improvement loan program, and WHEREAS, on December 17, 1980, the Housing and Redevelopm�nt Authority of the City of Saint Paul, Minnesota (the "HRA") appointed Briggs and Morgan to act as bond counsel for the Saint Paul Energy and Housing Rehabilitation Program (the "Program") and further directed the staff to negotiate the parameters of the Program, and WHEREAS, on January 28, 1981, the HRA appointed Evensen-Dodge to act as fiscal c�nsultant for the Program, and COUNCILMEN Requestgd by Department of: - Yeas Nays Hunt ��e In Favor nneadox - �;�� Against BY Tedesco �laon Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY By Approved by 1Nayor. Date Approved by Mayor for Submission to Council Bv Bv � � � � �� ' Page Two - WHEREAS, the HRA staff entered into negotiations with Northern States Power Company to coordinate energy conservation home loan programs to achieve maximum use of available funds, and WHEREAS, the HRA's participation in the Program will maximize assistance to the City's residents and provide special assistance to residents with low and moderate incomes, and WHEREAS, the Minnesota Public Utilities Commission, by order of April 3, 1981, authorized NSP to participate with the City to establish a joint energy conservation residential loan program, and WHEREAS, the order of the Public Utilities Commission, dated April 3, 1981, authorized the joint program contingent upon, 1) the.City receiving legal authority under Minnesota law to issue tax exempt revenue bonds for the stated program, 2) the City receiving a commitment from HUD to fund the UDAG or some other source of supplemental funding and, 3) authorization from the Saint Paul City Council to enter into an agreement with Northern States Power Company; all to be secured before the adjournment of the 1981 session of the Legislature, and WHEREAS, HUD has notified the City that consideration of the UDAG has been delayed until the second quarter of 1981, which ends June 30, 1981, and. WHEREAS, the City Council by its previous actions (Council File 276404 adopted February 19, 1981) conditioned the City's participation in the joint program on receipt of the UDAG grant or some other source of supplemental financing and receipt of legal authority under state law to issue tax exempt revenue bonds to finance the program, and WHEREAS, special legislation has been enacted by the Legislature and which is expected to be signed into law by the Governor which grants the City legal authority to issue tax exempt revenue bonds for the Program, and WHEREAS, staff has recommended to the City Council a revised Program based on the delay in consideration of the UDAG grant application, and WHEREAS, staff has recommended that the HRA enter into a two-phased joint program, whereby the HRA would authorize its participation with NSP of up to $1 million in tax exempt bonds, and at such time as the UDAG is approved or rejected, enter into the remainder of the program of up to $4 million in additional tax exempt financing for the single-family, owner-occupied portion of the program and of up to $7 million in tax exempt financing for the multi-family, rental portion of the program, and WHEREAS, Northern States Power Compa�y has requested from the City a commitment to proceed with the joint program even without current approval of the UDAG application, and WHEREAS, the two-phased, modified program will allow the Program to remain on schedule with respect to the delay in UDAG consideration, while maintaining the maximum coordination of City, HRA and NSP resources, �: _� ,� � � �1 � Page Three - `� THEREFORE, BE IT RESOLVED, that the City Council of the City of Sa.int Paul, 1) Grants preliminary authorization for the issuance of $1,000,000 of revenue bonds (the "Bonds"), which may be in the form of a single debt instrument, to be issued by the HRA to finance, in part, the Program, subject to the following conditions: - � a) Passage, approval and acceptance of the special legislation (Senate File No. 763 as amended) which grants the City legal authority to issue the Bonds to finance, in part, the Program. b) Passage of the Ordinance required to be adopted by the City pursuant to the terms of the special legislation. c) Final approval by the HRA and•Northern States Company as to the ultimate details of the financing of the Program and as to its ultimate qualification under applicable state and federal laws. 2) Directs staff to actively pursue the UDAG grant and to examine all other sources of program revenue and assistance, and 3) Directs the staff of the HRA, which shall have the primary responsibility (with assistance from the staff of the Energy Office and the City Attorney's Office) to negotiate the parameters of the Program and/or of the energy retrofitting program with the various interested parties and to present the Program proposals to the HRA Board for its consideration and approval as they are completed. 4) Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Projeet other than the revenues of the Program or such other revenue granted to the HRA for this purpose. The Bonds shall not �onstitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the HRA or the City except the revenue and proceeds pledged to the payment thereof, nor shall the HRA or the City be subject to any liability thereon. The holder of the Bonds shall never have the right to compel any exercise of the taxing power of the HRA or the City to pay the ;� , outstanding principal on the Bonds or the interest thereon, or to enforce payment thereof against any property of the HRA or the City. The Bonds shall recite in substance that the Bonds, including interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The Bonds shal! not constitute a debt of the HRA or the City within the meaning of any constitutional or statutory limitation. WHITE - CITY CLERK . � . PINK - FINANCE ' C�NARY - DBPARTMENT G I TY O F S A I N T PA IT L Council �} � Q" BLU6 - MAYOR O( G1 File N 0. Council Resolution Presented By Referred To Committee: Date Out of Committee By Date Page Four - S) Nothing in this resolution shall be construed to require that the City accept the special legislation, if and when passed and approved, or require that the City pass the Ordinance required thereunder, or require that the HRA give its final approval to the issuance of its tax exempt revenue bonds. . � ' COU[�iCILMEN Requestgd by Department of: Yeas Nays Hunt t..e�rne In Favor Madaox - McMshon B �,o,,,�� Against Y Tedesco Wilson Adopted by Council: Date Form Approve by ne . Certified Passed by Council Secretary B \ " By Approved by lilayor: Date Approved by Mayor fot Submiss' n to Coun il , � By gY � - - • ' . O� �� l Northem States Power Company 414 Nicollet Mall Min�eapoFs;Minnesota 55401 Telephone(612)330-5500 May 14, 1981 . .r ° Ms. Joann�e Showalter St. Paul City Council Energy Committee Room 713, St. Paul City Hall Kellogg Boulevard � St. Paul, Minnesota 55101 Dear Ms. Showalter: NSP, per order of the Minnesota Public Utilities Commission (MPUC) dated April 3, 1981, will be allowed to recover all costs associated with the St. Paul Energy Resources Center (ERC) including the $800, 000 to be provided and the carrying charge (interest) on the outstanding balance of unrecovered Company-provided funds. The costs will be isolated and accumulated in a deferred debit account and held intact until a general rate increase when an appropriate amortization � tization period for these costs will be determined. The order also requires collection of these charges through a separately stated surcharge which would be visible on all affected customers' bills. The surcharge would remain on customers' . bills only until total recoverable costs had been collected. The order does not address the assignment of costs � to a specific gas system (Northern Natural or Midwestern) or specific customer class or classes. These items will be determined as a contested issue at the first general rate increase. It is the Company's current intention that the costs of the St. Paul ERC should be borne by only residential customers on the Northern Natural system. Hypothetically, assuming a one year amortization beginning January 1, 1982, the total costs for the Energy Resources Center to be recovered in the test year (1982) would be $877, 404. This would cost each average residential gas customer in Minnesota, who is supplied by the Northern Natural system, approximately $4.57 or 38¢ per month. If a two year amortization were adopted, the annual cost would be approximately one-half of these amounts. The Company is obligated by'Commission order to provide the deferred principal and interest loans through either the joint NSP/St. Paul program or as an NSP-only program. � a �� / Ms. Joanne Showalter Page 2 May 14, 1981 �a�:. St. Paul customers will be affected by either of these � programs. Th� revenue requirements and cost to the customers for the two programs ( joint NSP/St. Paul program vs. NSP-only program) are approximately equal under tlze conditions that (1) the $625,000 is lent under deferred principal �nd interest repayment and (2) the loans are repaid ori an amortization schedule based on 13 years. If the loans are repaid e�rlier than 13 years, the Company is better off financially to administer the program themselves; conversely, any repayment longer than 13 years would cost the customers and the Company more than joint participation. (See attached schedule. ) , In addition to these costs for the Energy Resources Center, Minnesota residential gas customers on the Northern Natural system, including St. Paul ratepayers, would also be subject to the costs associated with deferred payment loans made to outstate Minnesota customers. It is estimated that these costs would be approximately one-third of the interest expense shown for the NSP-only version of the St. Paul program. Costs for the applicance rebate demonstration progam will be . recovered from NSP' s Minnesota electric custamers including St. Paul ratepayers. If you have any questions, please feel free to call be at . 330-6225. Sincerely, /��l . J. McIntyre Manager, Electric Revenue Requirements bb Attachment -..�....:..�,...�.a.. _ .�...�...�.-�,....��.,��..�..�,.,.,�.,.a _ . . . c� 7(� � �f Northern States Power Company Attachment State of Minnesota Public Utility Conservation Investment Program (PUCIP) � Revenue Requirement Comparisons `�� Interest Adminstrative Total NSP-Only Program Expense (1) Expense Expense Deferred Principal and Interest Loans 10 year repay $ 493, 572 $175, 000 $ 668, 572 _ 13 year repay 683, 463 1T5, 000 858,463 15 year repay 818, 254 175, 000 993,254 20 year repay 1, 176, 895 175, 000 1, 351,895 St. Paul Participation - Funds Provided $ 800,000 Carrying Charges 77,404(2) Total $ 877,404 (1) Net of 5.25$ individual customer responsibility for total loans of $625,000. (2) Assumes 1 year amortization period. ,, EJM 05/14/81 �� - � f...y � � . . J� 76 �� :�-� . CITY OF SAlNT PAUL • IN7ERDEPARTMENTAL MEMORANDUM DATE: May 13, 1981 � TO: Members of the City Council . FROM: Terry McNellis�� SUBJECT: UPDATE ON ENERGY RESOURCE CENTER (ERC) � In February, the City Council authorized City participation in a joint St. Pau!/NSP Energy Resource Center (ERC) as outlined below: � Program: NSP and City coordinate services and loan origination activity from ERC. � Loan Capita! � • Units to be Assisted $625,000 deferred principal and interest loans 310 units - NSP capital � . � � - loans lent at 4�6 below tax-exempt note rate {approximately 8� in today's market) • $1,000,000 installment loans {10 years) 500 units - tax-exempt city note - Loans Ient at 4% below tax-exempt note rate (approximately 896). This would be accom lished � � by NSP subsidizing from repayment of its $625,000 in loans after the tenth year. - $1,000,000 principal repayment guaranteed by NSP ;` $4,000,000 installment loans (10 years) 2,000 units � - tax-exempt city note � � , : - loans lent at 8.596 interest with subsidy from UDAG funds $7,000,000 muiti-family installment loans . 1,750 units . - tax-exempt city note • - loans lent at 1196 to building owners to comply with � � 1983 rental property weatherizatian code Admin. Cost: 175,000 - NSP �l75,000 - City/UDAG . ?Page -2- . . . . ' �. � ,�� .�� This authorization was contingent upon: 1) passage of appropriate bonding legislation and 2) receipt of a UDAG or other source of funding. A bonding bill empowering the City to issue bonds for the Energy Resource Center has been passed in both Houses of the State Legislature . and has been sent to the Governor. A UDAG application was submitted and has been�heid over for further consideration this quarter ending �une 30, 1981. The City will be notified in early �uly whether the applieation will be approved. � In March, the Public Utilities Commission approved the joint St. Paul/NSP proposal contingent upon: 1) the City securing legislative authority to issue bonds, 2) a commitment of a UDAG or other source of funds, and 3) authority to enter into a legally binding business agreement establishing the ERC; all to be secured by thg close of the legislative session. In order to meet this timetable, the Council must amend the ERC program. Outiined below are two alternatives � for your consideration. O tion 1 Program: 1) NSP conducts its own separate Energy Loan' Program Loan Capital Units to be Assisted $800,000 deferred principa! and interest � � 400 units • (NSP) loans from NSP offices. . � , OPtion 2 . Program: Begin loan program with a first phase with City and NSP starting loan activity from $1,625,000 ($1 million in HRA issued tax-exempt notes and $625,000 NSP fvnds) capital fund. Begin second phase with $4,000,000 single family capltal fund and $7,000,000 multi-family capital fund. Phase 1: Begin �uly 15, 1981 - op�rate from NSP oi.f:ce� Loan Capital Units to be Assisted $625,000 deferred principa! and interest loans 310 units - NSP cap'rtal . - loans lent at 496 below tax-exempt note rate (approximately 8%) $1,000,000 installment loans (10 years) 550 units. - tax-exempt city note - loans lent at 49b below tax-exempt loan rate (approximately 8°b subsidized by NSP) . - princiQal repayment guaranteed by NSP� Admin. Cost: $50,000 - $75,000 (NSP) . possible staffing contribution (banks) � utilize existing staff (City) � $175,000 LVSP funds - option remains available to City . , '. -Page -3- . �7 � �� Phase 2: Begin fall '81 - move to permanent ERC (Learning Center) site. Loan Capital Units to be Assisted � $4,000,000 installment loans (10 years) 2,000 units - tax-exempt note - loans lent at 8.596 interest with subsidy from UDAG � - if UDAG is unavailable $1,000,000 to $2,000,000 � � installment loans provided through CDBG and/or M HFA fund . $7,000,000 multi-family installment loans , 1,750 units - tax-exempt note , - loans lent at 11� to building owners to comply with � �� 1983 rental�property weatherization code � � $2,500,000 to $3,000,000 if UDAG is unavailable 625-750 units - s�bsidy provided through CDBG and/or MHFA funds Admin. Cost: UDAG, if available, if not, possible CDBG or MHFA funds . $175,000 - NSP funds � Option 1 effectively ends the joint program bet�veen St. Paul and NSP. If the City proceeds with a separate loan program, it will duplicate some administrative costs that NSP will be incurring. Also, St. Paul residents would not be as adequately or efficiently served because the various loan programs would not be coordinated through one office. Option 2 expands the loan fund NSP originally proposed to the PUC and provides an interest � subsidy on the additional $1,000,000 plus $175,000 in administrative costs. This provides for a joint operation between the City and NSP which allows direct referrals to other existing programs. , , Given these considerations, staff recommends the Couneit approve Option 2. This will require: 1) The Council to agree to issue $1,Q00,000 in tax-exempt notes to the ERC, regardless of � the outcome of the UDAG application and 2) the Council to authorize staff to negotiate a business agreement for the operation of the ERC. These alternatives will be discussed before the Energy, Utilities and Environment Committee on May 15. If you have any questions, pelase call John Sprangers (6736), Mary Schweiger (6251), or Rick Beeson (6193). - .. ";` ;� , !y1'A�YI a' ., v��(v C�<� �. - S.F. No. 763 CHAPTER Na �� - ' � � � . .'�� NOT� �.1 , Th;s is i�e tiral Versiot� � �±j;;;, f�iE� that��itl ba ` . . t;�^,:-,:it;ed to th3 QUV2iFFOT S � (=�Si;. C.hi:f•k HQUSS�(SCZe'h�E� � • �tr��datad siatas(2g6•6G4$) I 2 relating to the cities of Minneapolis a�d St. Paul; � 3 - ` authorizing the impleinentation of' energy conservation � 4 programs; authorizing the financing of residential � 5 energy conservation prograins; authorizing the issuance - 6 of qualified mortgage bonds; requiring a report to the � ? legislature. 8 � � - - 9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: ' 10 Section 1. [MI2�Il�IEAPOLIS AND ST. PAUL; RESIDENTIAL ENERGY 11 CONSERVATION PROGRAM; PURPOSE. ) � ��`� • - . . �:�,�:. 12 � The legislature finds and declares that �he state faces r '� . , . ------------------------------------------..______------ . � . 13 potential serious shortages in energy resources and that -� -------------------------------------------------------- 14 implementing energy conservation measures requires expanded � - ------------------------------------�-__------------------- 15 authority and technical capability in order to minimize the use � --------------------------------------------------------------- 26 of �traditional energy sources in the housing sector; that --------------------------------------------------------- 17 accompYish�ng energy conservation is a public purpose; that it --------------------------------_---------------------------.._- 18 is in the public interest to authorize the city of Minneapolis -------------------------------_..___�--_-__-------------------- 19 and the city of St. PauZ to provide existing single family, ----------------------------------------------------------- • 20 existing multifamily and exist�ng rental housing loans for, --------------------__-----------------------_____-------- 21 energy improvements. ' -------------------- . 22 Sec. 2. [RESIDENTIAL E2JERGY CONSERVATION PROGRAM. J . 23 Notwithstanding any provision of law or charter to the ' ------------------------------------------------------ 24 contrary the city of Minneapo�.is and the city of St. Paul', -----------�---------------------�___________.•_______----- . 25 individually or jointly are authorized to develop and administer ---------------------------------------------------------------- 2b a program or programs for the making or purchasing of energy ------------------------------------------------------------ � ' 1 . � . . . � � __ -__. . _ _ _ . . _ _ . T_ ._...,,,. .. .....�.�. - . . �..:,.:. ; .;, _ _ , _�.,.. . � � ..;�. ..,�:�. ... .s:,:��..» _..�..ir,• _ -:_.:,�..rr-�.'°' s+�v.�,.a�=.'++�.ya+qri�� :a�•.�+,i.�,t'w'%'�i��^'��,�," _ ^ �.r � lY C). /�,3.- + . . . � • �,.1,<; �- � 6 � � �� f� , 1 improvement .or energy rehabilitation 2oans with respect to 2 housing locatec} anywhere within thei.r respective boundaries� on ---=---------------------------------------------------------- �' 3 such terms and conditions as set forth in tlzis act �and an � --------------------------------------------------------- - 4 ordinance which shall be adopted by the governing body or bodies ..____..-----------------------..----------- - --.,-----____---_____ 5 of the municipality or municipalities establishing the program. --------------------------------------------------------------- 6 At least 75 percent of the proceeds of each energy impravement 7 or energy rehabilitation laan shall be used for housing repairs ---------------------------------------------------�------------- 8 and improvements (1) which the city determines are (a) used or . --------------------------------------------------------------- 9 useful to conserve energy or (b) to convert or retrofit an ---------------------------------------- ---------�-____--__ - 10 existing .structure for the purpose of using an energy source ----------------------------------------=------------------•--- 11 which does riot depend ox� nuclear or nonrenewable petroleura based ....------�----��^-�-----------�---........------'-------------..-�,-�....---� . 12 resources, and (2) wYi3ch, . when installed or completed, will wit3z ---------------------------------------------------------------- 13 respect to each housing unit directly result in a cost effective ------------------- ------------------------------------------- 14 reduction_of energy use from nuclear or nonrenewable petroleum _ ��w��r��r��i��r��r��r�r�� 15 based resources. The ordinance establishing the program shall ---------------------------___------------------------_________ 16 establish the manner of determining whether the housing repairs -------------------------------------------------- ------------ 17 and improvements will directly result in the required cost -------------------------•-------_____--____---------------- 18 effective reduction of energy use. Loans may be made without -----------------------------------------------------___----- 19 z`egard to income level of the loan recipient, shall bear ---------------..____----------___--___-----------_______ 20 interest at a rate or rates as are established by the city or� ------------------------------------------------------------- 21 cities, shall be for a term of not to exceed 20 years, and may . ------------- --�-------------------___---------------------- 22 be secured by a mortgage or other security interest. The powers ---------------------------- ----------------------------------- 23 granted to each city by sections 1 to 5 of this act are , ------------------------------------------------------- 24 supplemental and in addition to those granted by Minnesota ---------------------------------------------------------- 25 Statutes, Chapter 462C and any other law or charter. � �..��.��.�r�a..�..��.�w.�.��.�r��r��..��.�.�......�w�.��.....�.��. � . 26' � Sec. , 3. �LIMITATIONS. j 27 A program may be established gursuant to this act only 28 after the city establishing the �program determines that: • ----------------------------------------------------�--- � 29 (1) There is a continued need to reduce consumption of ------------------------------------------------------ 30 er�.ergy from nonrenewable petroleum based resources. ' ------------------------------------..----___------- 31 (2j There are housing units within the jurisdiction of the • . ..--------------------------------------------------------- 32 city which are in need of energy improvements and enerqy - - ----- -------------------------------------- - 33 rehabi2itation. ' . �� --------------- � • ' 34 (3) Private sources of financing are not reasonably - - -----------------------..____----------------------� 35 available to provide the needed loans far energy xmprovements -----------------=---------�---------------------------------- •: 36 and energy rehabilitation. 2 . . ' . . � . � . �� ' � � . � .ra� - . � �_..... . :.,....�.. .,, _ --.._. .... .. .... .. . __._.. ...._..._ _....... .. ._ . - - -- �r�rt.�. . -• - , ° ° ... . . ..»c�,�.w,x.:, �. . . . . . ..sa •. 2�V• . IV.7 �, . . ,- � r ' � � . . . . .. . � � � ' .� . . . � � � f ' . � ' 1 (4) The types of energy improvements and energy �? "; � - �- ------------------------------------------------- 2 rehabilitation will reduce the consumption of energy from - ---------------------------�----_____--------------------- 3 nonrenewable petroleum based resources or from nuclgar sources. ------:�-------------------..___---_-_-_-__--___-----_.._-------- 4 Findings made by the city pursuant to this section shall be ______________�_____-------------____________-------------- S conclusive and final. 6 Sec. 4. [REVENUE BONDS. � 7 � Subdivision 1. [RESOLUTION. J To finance the program or . _______....----- ------------------------- 8 " •programs authorized by sections 1 to 5, the city council of the --------------------------------------------------------------- 9 city of Minneapolis and the city council of the city of St. Paul �r��r��.`��..�..�r��r��w.�r��r.��.`��o.r��..�.��.�.��.��.r�.��.�.��...�rr��.r� 10 individually or jointly may, by resolution, authorize, issue, ------------------------------------------------------------- 11 arid sell revenue bonds or obligations, which are paya.ble from ----------------------------�------___________---------------- � 12 the revenues of the programs authorized by sections 1 to 5. , :...__ :..---------------------------------------____--------------- . ...� . .. ._ _ _. :; :':13 _`._' - �.'Su1'�d.- "2. ` [BONDING AND EINANCIAL AUTHORITY. j _ . _ : .. . . , . . . ... -------- . 14 Notwithstanding the provisions of any other law, qeneral .or •� . . • 15 special to the contrary, and in addition to the authority 16 contained in any other law, the city of Minneapolis and the cityi -----------------------------------------------------------------� . 17 of St. Paul individually or jointly may exercise any and aIl o£ � ------------------------- ------------------____-___________.._:,._..� . 18 the same powers in relatian to the making or purchasing of loans � . 19 or other securities and in the issuing of revenue bonds or ---------------------------------------------------------- 20 obligations in furtherance of the programs authorized by � 21 sections 1 to 5 as the Minnesota 2zousing finance agency is ' - 22 authorized to exercise under the provisions of Minriesota _____--�------------------------------------------------- 23 Statu��s, Chapter 462A, without regard to any of the limitations • ---__--__--------------------------------------------------------- 24 set forth in Minnesota Statutes, Chapters 462C or 475. The ----------------------------------------------------------- 25 revenue bonds or obligations shall be payable from revenues from --=------------------------------------------------------------- 26 the prograxa and other city housing programs. The revenue bonds ; ..--------=----------------------------------------------------- 27 or obligations may be payable from other sources of city revenue ---------------------------------------------------------------- 28 which are derived from federal sources other than gen�ral -------------------------------------------------------____ 29 revenue sharing, or pri'vate grant sources. The city shall not ---------------------------------------------�_-----___------- _ 30 levy or pledge to levy any ad va].orem tax: upon real property for ----------- -----....--------------___________________---______....� 31 the purpose of paying principal of or interest on .revenue bonds . -----------------------------.,-------____________.:___----___--- 32 or obligations. . • 33 Sec. 5. [EXERCISE OF POWERS. j 34 Either. or both cities may by ordinance authorize the � ----- -- - ----------------�----------------------- ' 35 housing and redevelopment authority or the port authority for • -------------------------------------------------------------- 36 their respective city to exercise any� or all of the powers _ _ ---------------------------------------------------------- . 3 ' � ; . . � .��-� - ._. _ . . .. . . . - - " _... _ _ �si - _, . ...... . ..�....-� .� ..,. . , . .. ,..:..-.._ . . . > �..�.. '-.�':., . � _ . ,rl,v . ' �. � . a°c" .: �. ..... ., .�°�"l'Y'�y's'Ls'.-�'�°�:.�a�,. ' � • S . F. :do. T63_�,:w � �j G ��s f�-, � .:.1 granted to each city by the. act, iri which event the sources of -------------------------------------------------------------- w2 city revenue that may be pledged to the payment of revenue bonds -----------------------�--------------------------------------___ 3 or obligations shall include any revenues of the housing anci ------------------------------------------------------------ 4 redevelopment authori.ty or port authority. • - ------------------------------------------ 5 Sec. 6. [QUALIFIED MORTGAGE BONDS. ] � � � 6 Subdivision 1. [MINNEAPOLIS. ) In accordance with Section 7 103A(g) (6) (A) of the Internal Revenue Code of 1954, as amended, -------------------------------------------..-----------_T______ 8 the city of Minrieapolis is authorized to issue qualified -------------------------------------------------------- 9 mortgage bonds as that term is defined in and as the bon�s are 10 governed by Section 103A of the Internal Revenue Code of 1954, 11 as amended, during any calendar year in an amount not to �exceed ----------------------------------------�----,----------------- 12 $16,000,000. Bonds shall be issued pursuant to authority � ---------------------------------------------------------- _ . 13 contained in a special or general law. � , _----------g-------------------------- . , � 14 Nothin contained within this subdivision shall authorize � -----_----------------------------------------------------- i 15 the issuance of qualified mortgage bonds for a program which 16 would otherwise be subject to Minnesota Statutes, Chapter 462C, l7 without compliance with that chapter. 18 Subd. 2 . jST. PAUL. ] In accordance with Section 19 103 (g) (6) (A) of the Interrial Revenue Code of 1954, as amended, ---------------------.._.. --------------_______-----__________.. . 20 the city of St. Paul is authorized to issue qualified mortgage -------------------------------------------------------------- 21 bonds as that term is defined and as the bonds are governed by -------------------------------------------------------------- 22 in Section 103A of the Internal Revenue Code of 1954, as 23 amended, during any calendar year in an amount not to exceed ------------------------------------------------------------ 24 $8,SOQ,000. Bonds shall be. issued pursuant to authority ____---- ---------------------------------�------------ 25 contained in a special or general law. _�---- ----------�----------- ------- 26 Nothing contained within this subdivision shall authorize --------------- _ ---------------------------___---------- 27 the issuance of qualified mortgage bonds for a p'rogram which 28 would othen,tise be subject to Minnesota Statutes, Chapter 462C, . . ------------------------------_____------------------------------ 29 without compliance with that chapter. 30 Sec. 7. (REPORT. j 31 By January 1, 1982, the cities of St. Paul and Minneapolis ----------------------------------------------..----------- 32 shall report to the appropriate committees of the leqislature on ---------------------------------------------------------------- 33 the implementation of the program created in sections 1 to S, ---------------------------------- -- ___-------- ---------- 34 The report shall include but is not limited to information on �= 35 the amountrof bonds issued and the number and types of dwelling --------------------------------------------------------------- 36 un�ts served, whether single family, multifamily of four units -------------------------------------------------------------- 4 . � . ''�i ��s.e, - _a.,rJ;r _ �,..x.�;��z�,x�-•%' _ •� - - S .F. N�o. 763 � . . . . , . .. �v y � y r�..A� • -1 or less, or multifamil.y of more than four units. "`� �`�` f - - ----- --______..____ , 2 Sec. 8. [EFFECTIVE DATE. j i 3 Sections 1 to 5 are effective with respect to each city 4 upon compliance with Miruzesota Statutes, Section 645.021, � 5 Subdivision 3 . Section 6 is effective tYie day following final -------------------------------------------------------------- 6 enactment.� . I ; , � I t � , . . � . , : 5 . � . . i _ _ _ • : :: �, $-�:fi�,�:`� _ . : . ._ . . . = S . F. No. 7b3 •, - � . . ' / �'`�/ � • � • • • 1 or less, or multi�amily of more than four units. ��' � 2 Sec. 8. (EFFECTIVE DATE. J 3 Sections 1 to 5 are effective with respect to each czty ------------------------------------------------------- 4 upon compliance with Minnesota Statutes, Section 645.021, � --------------------____--------------------_________-..-- 5 Subdivision 3 . Section 6 is effective the day following final -------------------------------------------------------------- 6 enactment.� � t - � • � 5 � " . j • °_ _ .._ _ ._ . .....,�u - - �'��r�� - � • - -� .,� �