91-2028 p'�������� Council File ,# '�'���`�
V �fQ�
Green Sheet ,� V Q
RESOLUTION � .
,� CI�F SAINT PAUL, MINNESOTA � ,;
esented By /�
� °�'� ' -
�
- v
I Referred To �� �`� �l �:/��-� �vvi.�,n.� ,i%f-e-� committee: Date (c�-3l��7 �
WHEREAS, the City of Saint Paul placed the PED Operations Fund 1991
professional services of $398,250 into a contingency budget line
item; and
WHEREAS, these professional services are necessary to carry out the
programs, function and objectives of the Department of Planning and
Economic Development; and
WHEREAS, PED's Economic Development and Housing Divisions will
regain the National Development Council to provide training and
technical assistance in SBA 504 and 7 (a) loan underwriting and
packaging, and assistance in new program design and development
(Lease-Purchase Housing Program) ; and
WHEREAS, the Mayor, pursuant to Section 10.07.4 of the City
Charter, recommends the following change to� the 1991 budget:
Current � �§mar7ed
Budget Changes �t
SPENDING PLAN
126 PED Operations Fund
36001 Director's Office
GL-126-36001-0548 Contingency 39,416 (4,500) 34,916
36045 Economic Development Division
GL-126-36045-0548 Contingency 18, 160 (4,500) 13,660
GL-126-36045-0219 Fees-Other 142,919 9,000 151,919
TOTAL SPENDING PLAN 200,495 -0- 200,495
RESOLVED, that the City Council approves these changes to the 1991
budget.
Yeae Navs Absent Requeated by Department of:
mon �
osw 2 -"�� �I /Gl'(�ht �, � �Ll)�C�,�� �V��,pi��
OlI �_r�' � ,
SCC @ ✓
e m n .�— s �: ,� ,,�� .
une ✓ � �. �7; a
S sOA f By' ,. " , � u ��+ pryf,�
— ,a
Adopted by Council: Date , �—� �— � Form Appr ed by Cit f orriey
Adoption Cert d b , Council r ary gy;
;`
By� Approved by Mayor for Submission to
��� 2 q� 1991 Council
Approved by �ior. Date * �
��;��;/ ��1��� _ / By: d��%u"U
By� _ � 2
�:
9i- �aa� .
DEPARTMENT/OFFICE/COUNCIL (3 E2O!91 R E EN , T N� _13 6 0 8
• PED
CONTACT PERSON&PHONE � TE INITIAUDATE
PARTMENT DIRECT �CITY COUNCIL
Lisa Clemens 228=3352 ASSIGN CITYATfORNEY CITVCLERK
MUST BE ON COUNCIL AGENDA BY(DATE) ROUTINGFO GET DIRECTOR :. �FIN.&MQT.SERVICES DIR.
lO—],-91 ORDER MAYOR(OR ASSISTANT) � TQIR MQy2Y /
TOTAL#OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGTIATURE)
ACTION REQUESTED:
Approval of Council Resolution to release 1991 Consultant Funds from contingency for
Economic Development a.nd Housing Divisions.
RECOMMENDATIONS:Approve(A)or ReJect(R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING�UESTIONS:
_ PLANNINCi COMMISSION _ CIVIL SERVICE COMMISSION 1• Has this erson/firm ever worked under a contract for this department?
_CIB COMMITTEE _ �'E NO
2. Has this personHirm ever been a city employee4
_STAFF — YES �
_DiSTRICT COURT — 3. Does this person/firm possess a skill not normally possessed by any current city employee?
SUPPORTS WHICH COUNCIL 08JECTIVE7 YE NO
INITIATINO PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Where,Why):
PED's Economic Development and Housing Divisions contract with the National Development
Council (NDC) to provide training and technical assistance in SBA 504 and 7(a) loan under-
writing and packaging, and assistance in new program design and development (Lease-Purchase
Housing Program) .
ADVANTAOES IF APPROVED:
Contract with NDC is extended three months (through year-end 1991) .
��
0
cF�L
�j�. ��'�8 FQ
� ,
DISADVANTAGES IFAPPROVED: �
none ��^L
���.�:��`+.��f C/
�cr � 3 � -
���� �r�...[.�-'-.�<
D18ADVANTACiES IF NOT APPROVED:
Inability to complete small business staff training and marketing, initiative, plus loss of
assistance in completing the design and operationalization of the Lease-Purchase Program.
C��E��t� ����?rch Center
OCT t �1991
TOTAL AMOUNT OF TRANSACTION S 9'��� COST/REVENUE BUDGETEp(CIRCLE ONE) � YES NO ____.....
FUNDING SOURCE 126 PED Operations Fund ACTIVITY NUMBER 36045 �nd 36001
FINANCIAL INFORMATION:(EXPLAIN) ��
". .
NOTE: COMPLETE DIRECTIONS ARE INCLUDED IN THE GREEN SHEET INSTRUCTIONAL -
MANUAL AVAILABLE IN THE PURCHASING OFFICE(PHONE NO. 298-4225).
ROUTING ORDER:
Below are correct routings for the five most frequent types of documents:
CONTRACTS(assumes suthorized budget exists) COUNCIL RESOLUTION(Amend Budgets/Accept. Grants)
1. Outside Agency 1. Qepartment Director
2. Department Director 2. City Attorney
3. Ciry Attorney 3. Budget Director
4. Mayor(for contracts over$15,000) 4. Mayor/Assistant
5. Human Rights(for contracts over$50,000) 5. Ciry Council
6. Finance and Management Services Director 6. Chief Accountant, Finance and Management Services
7. Finance Accounting
ADMINISTRATIVE ORDERS(Budget Revision) COUNCIL RESOLUTION (all others,and Ordinances)
1. Activiry Manager 1. Department Director
2. Department Accountant 2. City Attorney
3. Department Director 3. Mayor Assistant
4. Budget Director 4. Ciry Council
5. City Clerk
6. Chief Accountant, Finance and Management Services
ADMINISTRATIVE ORDERS(all others)
1. Department Director
2. City Attorney
3. Finance and Management Services Director
4. City Clerk
TOTAL NUMBER OF SIGNATURE PAGES
Indicate the#of pages on which signatures are required and paperclip or flag
each of these pages.
ACTION REQUESTED
Describe what the projecUrequest seeks to accomplish in either chronologi-
cal order or order of importance,whichever is most appropriate for the
- issue. Do not write complete sentences. Begin each item in your list with
a verb. .
RECOMMENDATIONS
Complete if the issue in question has been presented before any body, public
or private.
SUPPORTS WHICH COUNCIL OBJECTiVE?
Indicate which Council objective(s)your project/request supports by listing
the key word(s)(HOUSING, RECREATION, NEIGHBORHOODS, ECONOMIC DEVELOPMENT,
BUDGET, SEWER SEPARATION). (SEE COMPLETE LIST IN INSTRUCTIONAL MANUAL.)
PERSONAL SERVICE CONTRACTS:
This information will be used to determine the city's liability for workers compensation claims,taxes and proper civil service hiring rules.
INITIATING PROBLEM, ISSUE,OPPORTUNITY
Explain the situation or conditions that created a need for your project
�.- or request
ADVANTAGES IF APPROVED
Indicate whether this is simply an annual budget procedure required by law/
charter or whether there are specific ways in which the City of Saint Paul
and its citizens will benefit from this projecUaction.
DISADVANTAGES IF APPROVED
What negative effects or major changes to existing or past processes might
this projecUrequest produce if it is passed (e.g.,traffic delays, noise,
tax increases or assessments)?To Whom?When?For how long?
DISADVANTAGES IF NOT APPROVED
What will be the negative consequences if the promised action is not
approved? Inability to deliver service?Continued high traffic, noise,
axident rate?Loss of revenue?
FINANCIAL IMPACT
Although you must tailor the information you provide here to the issue you
are addressing,in general you must answer two questions:How much is it
going to cost?Who is going to pay?
. � -
- �/�Oo�
Irrterdepartmental Memorandum
CITY OF SAINT PAUL
i
December 17, 1991
TO: Chair Janice Rettman
Members, Finance Committee
Members, City Council
FR: Lisa R. Clemens �,�-
Deputy Director �
RE: FOR COUNCIL CONSIDERATION ON THURSDAY. DECEMBER 19
Resolution 91-2028: Amending the 1991 Budaet bv transferrinct
$9 000 to the Financincr and Spending Plans of PED-Economic
Development and Housing Divisions from Continctencv Funds
At the Finance Committee meeting of December 16, 1991, I understand
the following questions arose:
1. Does this contract represent a quarterly payment?
2. Annualized, is this a $36, 000 contract?
Clarification is as follows:
Ouestion #1
In December, 1990, PED entered into a $27, 000 contract with the
National Development Council for the period January 1, 1991 through
September 30, 1991. The scope of services, subsequently provided,
was as follows:
a. Provide training and technical assistance to PED staff in SBA
504 and 7 (a) loan underwriting and packaging.
b. Provide training and technical assistance to PED staff
analyzing and structuring commercial real estate projects.
c. Provide assistance to neighborhood development organizations,
as requested by PED.
d. Assist in other types of financing utilizing federal agencies
and other non-profit vehicles.
c x
Councilmember Rettman
December 17, 1991
page 2
e. Assist in new program development and design.
Resolution 91-2028 would extend the contract through year-end
1991. In a strict sense, this is not a quarterly payment on
an annual contract; however, it does cover a three-month
period.
Question #2
This expenditure will bring the contract amount on an annual basis
in 1991 to $36,000. The important question is, what value have we
received for this expenditure? I believe this has been a very
worthwhile use of our contracting dollars with visible results, as
follows:
a. Our contract is serviced by NDC's Gary Fields, a Saint Paul
resident and an experienced professional in small business
financing and real estate development.
b. Gary's assistance in credit analysis, loan structuring, and
loan packaging has been instrumental in many of our 1991
accomplishments. For example:
1. Mr. Fields played a major role in structuring the City's
loan to Minnesota Brewing Company (and its two
unsuccessful predecessors) , and most recently,
documenting our due diligence process for the entire debt
and equity package to the Minnesota Department of Trade
and Economic Development.
2 . Assisted in structuring the financing package for the
East Side Montessori House of Children, an extremely
complex financing which blended Vacant Commercial
Building, Commercial Rehabilitation and Enterprise
Leverage Fund loans. This financing permitted a former
neighborhood nuisance property to be transformed into a
quality child care center for 90 toddlers and
preschoolers.
3. Assisted staff in structuring SBA 504, 7 (a) and
Enterprise Leverage Loans for the Saint Anthony Park
Nursing Home, which permitted this 106-bed nursing home
facility to successfully emerge from bankruptcy with new
local ownership.
. � .
.. <j/-�D��
Councilmember Rettman
December 17, 1991
page 3
4. Assisted staff in securing approval from the SBA for the
expansion of SPEDCO's certification area to include
Ramsey, Washington and Dakota Counties (with marketing
and loan packaging services to be performed by the Metro
East Development Partnership) .
5. Played an instrumental role in helping the Downtown
Project Management staff to research and design a new
business recruitment financing program--the Strategic
Investment Fund. Mr. Fields was able to bring us the
best efforts of other cities, and help design a business
recruitment program that is innovative, responsible and
accountable--a clear departure from the "throw money"
approach that is so often used to attract new businesses.
6. Played an important shaping role in developing the new
Lease-to-Own housing program with the Housing Division,
particularly through his ability to bring in experience
from cities across the country with respect to program
operation, private partner participation and bond
structuring issues.
Mr. Fields' staff training sessions (on the topics outlined above,
per his contract) , have elevated the expertise and deal structuring
ability of both the Small Business Finance, Project Management
(both downtown and neighborhood) and Housing staffs. He has worked
closely with our employees on both a one-on-one and group basis,
and has always been available on very short notice.
Through our NDC contract, PED is also able to obtain valuable and
detailed information from other cities across the nation,
benefitting from learning of their successful practices and
avoiding their pitfalls.
I urqe your support of this results-oriented contract.
LRC:kh
� ��� ,�Q��
Committee Report
Finance, Management, and Personnel Committee
December 16, 1991 - Page 3
10. R ution 91-2122 amending the 1991 Budget by adding 529,400 to the 1991
Cap� ��n�r��ms.n-t�Program - Hillcrest Lighting Project. (Referred from
Council 11/21/91) �
Approved 3-0
�.a�,�� ;x- i�-��
11. R s ution 91-2028 - amending the 1991 Budget by transferring $9,000 to the
Fi a '-r�-�a-�d-&�e �ng Plans of PED - Economic Development and Housing
Division from Contingencv funds. (Referred from Council 10/31/91)
Approved 3-0
Councilmember Maccabee requested that the Committee be provided with information
from PED on the total amount that has been spent with this NDC contract. Written
informati ' 1 be provided at a Council meeting.
12. esolution 91-2202 - amending the 1991 Budget by adding $40,000 to the Financing
an of Community Services - Nuisance Abatement Fund. (Referred
from Council 12/03/91)
Approved - � :
13. solution 91-2204 - mending the 1991 Budget by transferring $24,978 to the
s of Public Health Special Projects for Native American
Health ProQram. {Referred from Council 12/02/91�
Approved 3-0
The Committee requested that the Division of Public Health provide quarterly
audit reports on the Native American Health Program at the Board of Health
meetings. The Division will provide an official resQl�ution if necessary.
i�
=� 14. Resol�tion 91-2121 - amending the 1991 Budget by transferring $6,315 from
�� Cont-ingent reserve to City Attorney Budget for payment of legal bills
associated with ballot recount for the November, 1989 General Election.
-- Referred from Council 11 21 91
Committee recommended sending this resolution to Council without recommen-
dation and requested that Councilmember Long, the author of the resolution,
- identify the factUal basis for paying the attorney fees. ,
15. Administrative Orders: ,, �
D-11663 - Budget revision in Executive Administration to amend the 1991 General -
Fund. (Referred from Council 10/10/91) -
Councilmember Goswitz requested that the Mayor's Office provide a breakdown
of all items listed in the administrative order by Thursday, December 19.
Councilmember Maccabee requested details on where the money is coming from.
. . . , .
, , _
.
,_, : -
. ,
..:. :. ,, t . ; . . :;. _:
. ; .:
. _ .
. __ . . _
. � ; . :
. , _. . . . .. . -
. : .
. _.. ,. _ . :_ _:. .:
. . .
:.
._ . . ,. ...: . :
.
,. ._ . .�,.... . ..; ,.. .
;-, .
�. ;. ,, ;..,... . ., .. ,_ .
,_ . ._. , . , . . . . . ..
. . . ... ,. , . . , .. :. .
. .
. . ,:., . ,.. ,.. . _
. _. . :
.: ._ ,. - : - :- . _ . _ ..
f;
i ls�< 6r L ...�. ' _ � 2nd �� ,` ��
- - � ',
3rd � �' �.� ' 1 � Adopted / �- j�- � �
_. � -
3
- : Yeas Nays
; q
; DIMOND �ICy/—o?O�/
' �dd 7
x
`' . GOSfn1�TZ `
_ y h �
rz
� t d.. r
> '=� LOI�TG
� ,
,` �j '
MACCABEE
, �=i ;
� l ��'� L<L.1111�1CfLV �
- _ � ,_: ' _ . � .
- `"� THtJN�
- , -I �
MR. PRESIDENT, �++1ILSON
- >,
_ -
. , , = -- -
.,
-�:�. � ��.r -,- ,.�,: -,�' �-'+ -
..: � � _. �.. . �-
.... . :� . -.. . -
.;.. . _,.. _. . .,' �� '�� -
.
.,�-. - .. ...
' ... .--� - - �° . • -
_
.,.... .. .: � ... ...:.. ... _
' ��... . .>,.� .:. . .:_;. `. -,,.�. .._.:
,
-
. .. . _ . . .� . . .,�. � •-, ' -
. ':.. .� .. ., . .._. ...:- . . �... .. .:. -
,
.,._ . -.., . _-. .---�, . _..: .,.. -
+c�.� - - _ - z �
.x ,:; r =
- ,, r
•' -i - — _
. �.. � . ,+ � ' _
._ .,� .. .. . - �
'�.�'� -� r ..� ..' •�.�. 'a _
. . .� . .. '.. .,..._.. � �� - ...��' ."_ . .,
_ � _
i
.; .: . ..,... . ,... . . ,� . .. .. .. ...-_. . -
_ � _ _- _- '.}._ _ � _
.... ,., r. ,i ... -� -
.
-.' �.:. ..�. ,: �: . '��� ' '
.�.i .. ;- ,.. ��.,._ : .
. . , ._ �- .i',
� - 5
`t - -