96-1512 ! Council File# �� - 1 � i a
` Green Sheet#
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
Presented by `
Refened To Committee Date
RESOL UTION ACCEPTING AND ADOI'TING THE POLICY RECOMMENDATIONS OF THE
JOINT SAINT PAUL MINNEAPOLIS LIVING WAGE POLICY TASK FORCE
1 WHEREAS, according to the 1990 census, 17%of the City of Saint Paul's residents and 19%of Minneapolis's residents live in
2 poverty; and
3 WHEREAS,the City investment in local economic development provides many benefits for citizens of Saint Paul, one of
4 which could be the availability of living wage jobs for the community; and
5 WHEREAS,the Saint Paul and Minneapolis City Councils established the Joint Saint Paul/Minneapolis Living Wage Jobs
6 Task Force with the purpose of developing and recommending living wage jobs policy for the two cities;and
7 WHEREAS,the Task Force was comprised of inembers representing businesses, economic development specialists,labor and
8 community organizations and was co-chaired by MaryAnn Sudieth,Vice President of Community Reinvestment at
9 FIRSTAR in downtown Saint Paul and Rebecca Yanisch,Executive Director of the Minneapolis Community Development
10 Agency (MCDA); and
11 WHEREAS, the Joint Saint Paul/Minneapolis Living Wage Jobs Task Force met every two weeks from April through
12 November of this year,alternating meeting locations between Saint Paul and Minneapolis; and
13 WHEREAS, the Task Force dedicated itself to the develop of its policy recommendations by 1) hearing from the Cities of
14 Minneapolis and Saint Paul, the Minneapolis Community Development Agency, and the Saint Paul Port Authority on current
15 job and development policies in the two Cities;2) conducting public hearings at the Minnehaha Recreation Center in Saint
16 Paul and the Peavey Neighborhood Center in Minneapolis in order to understand fully community concerns and ideas for
17 living wage jobs policies for Minneapolis and Saint Paul; and 3) deliberating on specific policy recommendations to go
18 forward to the Saint Paul and Minneapolis City Councils—finalizing its policy recommendations on November 26, 1996; now,
19 therefore, be it
20 RESOLVED, that the Saint Paul City Council accepts the policy recommendations developed by the Joint Saint Paul
21 Minneapolis Living Wage Jobs Task Force and adopts the recommendations as policy;and be it finally resolved that the Saint
22 Paul City Council forwards to the Saint Paul Housing and Redevelopment Authority (HRA) those policy
23 recommendations pertaining to HRA operations.
Yeas Na s Absent Requested by Department o£
Blakey ,/
Bostrom ,/
Guerin ✓
Harris ,i By'
Megard ,�
Rettman r Form Approved by City Attorney
Thune ,i
By:
d
Adopted by Council: e Approved by Mayor for Submission to Council
�'
Adoption Certi ed by Council Secre
By:
By:
Approved by Mayor: ate i
By' .���
� ' `�.
A �,,���. � � - �`C����: s � � ,
_
�t�-�Sta-
oe �Kr � a►�e�mx�o N° �9 8 5 9
cit coun�ii , GREEN SI#EET
ACT R 8 �DEPARTMENT DIRECTWi �� �CITY COUNCIL ��IwQATE
Dave Thune 266-8620 � �cirrn�r�v �cmc��c
MU B ON IL NDA ( �� �BUDOET DtfiECTOR �FlN.8 MOT.SERVICES ONi.
�� �MAYOR(OR�a8313TlWT) �
TOTAL#�OF SIGNATtlRE f311GES (CUP ALL LOCATIONS FOA SICC,iNATURE)
�craN neou�s�o: :
Resolution aceeptfng and adopting the policy rec.Qmmendations of the Joint Siant Paul-
Minneapolis Living Wage Task Force.
���'����°��(R� PER80NAL SERVICE CONTRACTS MUST Af(SWER TNE POLLOWING QtiEST10NS:
_PLANNINO COI�MdIS310N _CIVIL SERVICE COMMISSION 1. Haa thie personRkm ever worked undsr a oontnct for this dspertmeM4
_CIB COMMITTEE _ YES NO
2. Has this penoNfirm ever beon a dty employea?
—�� — YES NO
_Di3rRicr coURr _ $: Does mis p�/fi►m aatea s skiH not normaufr voseessed bv any a,r►ene cny emp�oyes?
SUPPORTB WHICH COUNCIL OBJECTIVE4 YES NO
Explaln atl yy ensw�n on�►�b sM�t aM�tt�ch to qrwn sh�st
INITUTINO PROBLEM.IS8UE.OPPmR7'UNITY(Who.Whet.Wh�n,WhKe,Whyl:
The City cur.rently has no targeting strategy for bringing iiving wage�'�oba to 3afnt. Pau1.
ADVANTAQES IF ItPPR01lED:
The City will have a focus and direction for attracting businesses to Saint Paul.
DISADVANTAOE8 IF APPROVEO:
None.
D18ADVANTAOE8IF NOT APPRQVED:
Lack of direction will continue.
TOTAL AMOUNT OF TRAN8ACTION : COST/REVENUE SUDGBTED(CIRCIE ONE) YE$ t!�
FUNDIWG SdURCE ACTIVITY NUMdER
FINANCIAL INFORMATION:(EXPLAIN)
�'�-/�/�
JOINT MINNEAPOLIS SAINT PAUL LIVING WAGE JOBS TASK FORCE
POLICY RECOMMENDATIONS TO THE
MINNEAPOLIS AND SAINT PAUL CITY COUNCILS
.� As Adopted by the Saint Paul City Council January 2, 1997.�.,
1. In any City economic development project in which jobs are created or retained, the City
assistance should require the creation or retention of full time jobs with a living wage except
when any of the following conditions are met:
a) the cumulative assistance package totals less than $100,000 in any one fiscal year; or
b) the business receiving the assistance is a small business as defined by Minnesota Statute
645.445; or
c) the recipient is an intermediary, such as a community development corporation or
community bank, which serves as a pass-through agency for the granting of assistance; or
d) the recipient is a business in its first year of existence in which case the exception will last
for one year.
For purposes of this provision, assistance should be broadly defined as loans, bonds, grants and
City tax incentives, excluding conduit bonds.
2. Redevelopment projects whose only public assistance is site remediation, investigation, and
assembly will be exempt from monitoring and sanctions requirements.
3. A living wage must be paid by all businesses covered by this policy after an employee has been
on the job for one year and a living wage will be defined and indexed as 110% of the federal
poverty level for a family of four, or 100% of the federal poverty level for a family of four for
businesses that provide employer-paid basic health insurance coverage. Any business unable to
pay all or part of the living wage must provide a detailed explanation to the Department of
Planning and Economic Development, which may recommend to the City Council and/or the
Housing and Redevelopment Authority Board of Commissioners a waiver to this requirement
which waiver may be granted by resolution.
4. 60% of new jobs created must be held by City residents. These jobs should be advertised to the
entire community including low-income people through community-sponsored organizations
or job linkage programs.
5. The City of Saint Paul will focus its job creation and retention assistance at businesses which
demonstrate a commitment to the community by providing living wage jobs to their
employees and to residents by giving priority to these businesses over businesses which have
not traditionally paid living wages.
6. All other things being equal, and to the extent legally possible, the City of Saint Paul will give
preferential status for job creation and retention assistance to businesses that engage in
responsible labor relations.
q�-�s��
JOINT MINNEAPOLIS/SAINT PAUL LIVING WAGE JOBS TASK FORCE
POLICY RECOMMENDATIONS TO THE
MINNEAPOLIS AND SAINT PAUL CITY COUNCILS
PAGE#2of2
7. The City of Saint Paul and the Saint Paul Port Authority will impose sanctions for non-
compliance with these requirements.
8. The Saint Paul City Councils designates the Department of Planning and Economic
Development to monitor and prepare an annual report on compliance with these requirements,
possibly as a part of its annual report to the City Council on the job impacts of the precious
year's projects.
9. The City of Saint Paul exempts organizations whose primary mission is to provide job
readiness and training services, and whose sole purpose of requesting funding is to provide
those services.
10. The City of Saint Paul will work with the Metropolitan Council and other appropriate state
and regional agencies and the legislature to promote common standards consistent along these
guidelines for job creation and retention assistance by public development agencies throughout
the region.
11. The City of Saint Paul will commit to assist area businesses to obtain trained and work-ready
employees and to facilitate access to child care and public transportation systems.
12. Administrative guidelines should be developed by the City's Department of Planning and
Economic Development and HRA staff and brought before the City Council and HRA Board
of Commissioners for review and adoption. These guidelines should explain in detail how each
of the policy recommendations will be implemented.
13. Because job readiness is a primary challenge to the success of any wage initiative, and because it
is of importance to the residents of Saint Paul as well as to business that develops here, the Saint
Paul City Council and the Housing and Redevelopment Authority Board of Commissioners
directs the City's Department of Planning and Economic Development and HRA staff to
develop a job readiness, training and apprenticeship proposal for City residents. This proposal
should include cost estimates and possible resources from public and private sources, and
should be developed in partnership with local job training, placement and apprenticeship
agencies. Funds for monitoring and compliance shall include funds for staff costs to work with
other public and private entities to prepare City residents for jobs in new development.
��-�si�-
JOINT MINNEAPOLIS SAINT PAUL LIVING WAGE JOBS TASK FORCE
POLICY RECOMMENDATIONS TO THE
MINNEAPOLIS AND SAINT PAUL CITY COUNCILS
For Consideration as City,Minneapolis Community Development Agency and
Saint Paul Housing and Redevelopment Authority Policy
Preamble: The following recommendations are made in order to assure that whenever Minneapolis and
Saint Paul invest public funds in economic development projects, those projects create the greatest number
of living wage jobs possible for Saint Paul and Minneapolis residents. In addition to these specific
recommendations, we urge our City policy makers to keep the critical need for living wage jobs before
them whenever they consider investing public dollars in development projects.
1. City economic development assistance should require the creation or retention of full time jobs
with a living wage except when any of the following conditions are met:
a) the cumulative assistance package totals less than $100,000 in any one fiscal year; or
b) the business receiving the assistance is a small business as defined by Minnesota Statute
645.445; or
c) the recipient is an intermediary, such as a community development corporation or
community bank, which serves as a pass-through agency for the granting of assistance.
For purposes of this provision, assistance should be broadly defined as loans, bonds, grants and
City tax incentives.
2. Redevelopment projects whose only public assistance is site remediation, investigation, and
assembly, and that pay fair market value for the site will be reviewed according to Principle
Number 6 of this report and will be exempt from monitoring and sanctions requirements.
3. Assistance packages above $100,000 to non-exempted businesses will have to create or retain a
fixed ratio of jobs per $100,000.
4. A living wage will be defined and indexed as 110% of the federal poverty level for a family of
four.
5. A goal of 60% of jobs created must be held by City residents. These jobs should be advertised
to the entire community including low-income people through a community-sponsored
organization and/or a job linkage program.
6. The Cities of Minneapolis and Saint Paul will focus their job creation and retention assistance
at businesses that demonstrate a clear and ongoing commitment to providing living wage jobs
to their employees and to residents when applicable. �
CONTINUED
��-� s ��-.
JOINT MINNEAPOLIS/SAINT PAUL LIVING WAGE JOBS TASK FORCE
POLICY RECOMMENDATIONS TO THE
MINNEAPOLIS AND SAINT PAUL CITY COUNCILS
PAGE#2of2
7. All other things being equal, the Cities of Minneapolis and Saint Paul will give preferential
status for job creation and retention assistance to businesses that engage in responsible labor
relations. Responsible labor relations are defined as neutrality on union organizing, providing
a complete and accurate list of names and addresses of employees, reasonable access to
employees and facilities during non-working periods, voluntary recognition based on a card
check demonstrating that a union represents a majority of employees in a bargaining unit, and
binding arbitration on the first contract.
8. The Cities and Port Authority will impose sanctions for non-compliance with these
requirements.
9. Minneapolis and Saint Paul City Councils shall designate staff to monitor and prepare an
annual report on compliance with these requirements.
10. Work presently being performed by City employees may not be contracted out unless the
contractor pays employees performing that work a living wage or the current City wage,
whichever is higher.
11. To the extent legally possible, City contracts awarded for services will, within four years,
beginning in 1997, be awarded to contractors who pay, at a minimum, a living wage for
employees performing that contract service.
12. Minneapolis and Saint Paul City Councils shall direct purchasing staff to develop by August
1997, policies and practices for contracting and purchasing of goods and services to encourage
the creation of living wage jobs using the Cities of Baltimore and Milwaukee as references.
13. The Task Force acknowledges the need for job readiness services for some City residents who
face serious social and economic barriers to employability. Many of these residents need to
establish a stable work history before they are able to move on to living wage jobs. The Task
Force policies exempt organizations whose primary mission is to provide job readiness and
training services, and whose sole purpose of requesting funding is to provide those services.
14. Saint Paul and Minneapolis will work with the Metropolitan Council and other appropriate
state and regional agencies and the legislature to promote common standards consistent along
these guidelines for job creation and retention assistance by public development agencies
throughout the region.
15. Although our primary focus is on the creation of living wage jobs where public assistance is
received, the Twin Cities cannot achieve their economic development goals without a trained
and work ready workforce and adequate day care. The Cities will commit to assist area
businesses to obtain trained and work-ready employees and to facilitate access to child care.
ADDENDUM TO THE q(o—�S 1 a—
JOINT MINNEAPOLIS SAINT PAUL
LIVING WAGE TASK FORCE POLICY RECOMMENDATIONS
The recommendations of the Living Wage Task Force establish the important principle that
public subsidies should require the creation or retention of living wage jobs, but the
recommendations cover only a portion of current public subsidies. We, the undersigned members of
the Living Wage Task Force, believe that the recommendations must go further in order to realize
the full value of public investments in our Cities. We are especially concerned with the conditions
of public subsidy for sports facilities, convention facilities, and large-scale commercial and retail
developments that consume enormous t�payers subsidies. These investments are usually justified in
terms of increasing the number of downtown visitors and improving retail business. However,
given the large sums spent on these projects, we recommend that these investments be subject to
living wage requirements as a condition of public finance. Such a policy would provide a better
return for our public investment and, in fact, will more effectively develop a community where
people have incomes sufficient to support retail businesses and will generate true and lasting
community vitality.
We also believe that it is appropriate to make stronger provisions to ensure that an appropriate
number of jobs created through taxpayers subsidy actually go to City residents.
We therefore make the following recommendations to extend the common ground
recommendations of the Task Force:
A. Living wage policy requirements, in addition to applying to economic development projects,
should apply to all public financial assistance to businesses and to City financing of all
development projects and facilities such as convention centers and stadiums. Exemptions to the
policy should include, in addition to the three conditions listed in provision #1 of the Task
Force recommendations, the following condition for exemption:
the recipient is a neighborhood-based community-development project (such as the
Chicago Crossings Neighborhood Retail Project) that involves a non-profit community
development group and would be eligible for Community Development Block Grant
Assistance.
B. For purposes of the provisions of living wage policies, assistance should be defined so as to
include tax increment financing along with the other forms of assistance included in provision
#1 of the Task Force report.
C. 60% of the jobs created or retained must be held by City residents as a requirement of City
subsidy.
D. If and when an assisted business fails to comply with the terms of an assistance agreement, then
the business shall return the assistance.
Sunday Alabi Bernie Hesse Dale Means
Alton L. Bennett Kristine Jacobs Evelyn Mil�s
Alexa Bradley Mary Jo Maynes Deborah Schlick
Martin Goff John McCarty Bill Turner
� � - � s � �.
CITY OF SAINT PAUL 390 Ciry xall Telephone: 612-266-8510
Norm Coleman, Mayor 15 West Kellogg Boulevard Facsimile: 612-266-8513
Saint Paul, MN 55102
January 10, 1997 �
�-�.. � _ ,;a _ ��--j
C�=-�>_.r-�_� h���---r-.�..�`
Council President Dave Thune and �s=-��'`-
Members of the City Council
3rd Floor City Hall
Saint Paul, MN 55102
Dear Council President Dave Thune and
Members of the City Council:
I strongly believe that public t�dollars must be maximized in terms of creating jobs which
provide for a good quality of life for our residents, as well as ensuring that accountability in
the use of those tax dollars is maintained.
These are laudable goals, however, I am troubled by some aspects of the Council's
resolution regarding the"Living Wage Jobs Policy" to move beyond job creation and
accountability into areas unrelated to these goals. It sends the wrong message that job
creation in Saint Paul may be hindered by more unnecessary bureaucracy. It's a decision
that I believe is fundamentally unsound on basis economic principles.
However, after having reviewed this legislation with staff from the Department of Planning
and Economic Development, as well as the City Attorney's Office, it appears that this
language does not now, and should not in the future, have any negative impact on our
City's ability to create or retain jobs in Saint Paul. Accordingly, I have chosen to allow the
City Council's"Living Wage Jobs Policy" which passed on a 7-0 vote to be approved
without my signature.
Given that there are several situations in which waivers can be granted to businesses
seeking to do business in Saint Paul, I believe that there are enough safeguards in place to
ensure that these policy recommendations will do no harm to our continuing efforts to
work with the private sector to create jobs and expand our economy.
However, if this language does become in any way, shape, or form, an impediment to
the creation or retention of one single job in Saint Paul, I will immediately request
that the City Council amend those provisions of the resolution which jeopardize
economic growth -- or that the Council considering repealing this resolution and
start over again.
�
� � � � ts ia-
Council President Dave Thune and
Members of the City Council
Page Two
January 10, 1997
I will listen very closely to those in the private sector who have experience in job creation
and retention as the weeks and months pass and we continue to work hard to bring more
high-paying jobs to our City. If they can provide clear evidence that the Council's
decision to pass this language has a detrimental impact on our economic development
efforts, I will not hesitate to come before you immediately for decisive action on your part
to keep our economy moving forward.
As always, we will continue to perform the necessary oversight throughout our lending
process in the use of public tax dollars and maximize the economic impact of those dollars.
Sincerely,
°� .�l�l
Norm Coleman
Mayor
cc: St. Paul Area Chamber of Chamber
John Labosky
Steve Holupchinsky
�L-��i�
Minnesota ACORN
Association of Community Organizations for Reform Now
757 Raymond Avenue Suite 200 St. Paul, MN 55114
Telephone: (612) 642-9639 Facsimile: (612) 642-0060
Press Statement
Contact: Alton Bennet
Michael Slater
MN ACORN Supports Living Wage Task Force
Recommendations
St. Paul,MN--The 2500 member families of Minnesota ACORN support the recommendations
of the Twin Cities Living Wage Task Force. The Task Force has worked hard over the past
eight months to carefully deliberate on the best ways to assure public benefit and
accountability when investing tax dollars in private businesses. Their careful work on
contentious issues is reflected in a vote of 23 to 1 in support of the recommendations. We urge
the St. Paul City Council and the St. Paul City HRA to make thse recommendations public
policy.
We know the Task Force did not arrive easily at these recommendations. As a representative
of an organization which helped lead the fight on the St. Paul Jobs Ordinance,I know we
compromised on several key points. We now support exempting businesses that receive
under$100,000 in city aid from living wage requirements. We have dropped residency and
hiring requirements in favor of a 60% residency goal. We support exemptions for pass-
through agencies such as community development corporations. Yet I believe that we have
created a better, and more realistic set of policies through the task force process.
The issues of corporate behavior and living wages is much more advanced that it was a year
ago. Recent studies have demonstrated that, despite all the fears,minimum wage and living
wage laws do not put a damper on the economy. A study of Baltimore's living wage law has
l�_ �Siz
demonstrated that: the real cost of city contracts has decreased significantly,no companies
report reducing staff as a result of Ehe law, and overall economic investment in the city has
risen since passage of Baltimore's law.
The Wall Street Journal recently reported that businesses have survived the recent minimum
wage hike with little change in their operations. These results fly in the face of the gloom and
doom warning of the business lobby. There have been no dramatic disinvestment in Baltimore
as a result of a living wage law and there have been no dramatic changes in unemployment
since the new minimum wage was enacted.
Yet there has been a dramatic upswing in the public demand for corporate accountabiliy to
citizens. A recent poll of 800 registered voters reveals strong support for government action.
67% of Caucasions and 83% of African-Americans surveyed favor government action to insure
corporations act more responsibly. On the matter of wages, Americans were clearly concerned
about corporate pay. 76% of those surveyed were strongly concerned that "Corporations were
not paying employees enough so that they and their families can keep up with the cost of
living. " These feelings are bipartisan: 79% of democrats are concerned about corporate
treatment of their employees,64% of Republicans, and 71% of ticket-splitting voters.
The recommendations brought to you today by the Living Wage Task Force are sound
measures to ensure that the city receives a measurable benefit when investing public money in
private enterprise. The ideas have been debated and approved by a body of individuals
representing a wide range of stakeholders in the city. We urge you to vote in favor of them.
Thank you.
2
'� � �l � - lS� �,
CITY OF SAINT PAUL 390 Ciry HaU Te[ephone: 612-266-8510 �
Norm Coleman, Mayor IS West Kellogg Boulevard Facsimile: 612-266-8513
Saint Paul, MN 55102
�� January 10, 1997
Council President Dave Thune and
Members of the City Council
3rd Floor City Hall
Saint Paul, MN 55102
Dear Council President Dave Thune and
Members of the City Council:
I strongly believe that public tax dollars must be maximized in terms of creating jobs which
provide for a good quality of life for our residents, as well as ensuring that accountability in
the use of those ta� dollars is maintained.
These are laudable goals, however, I am troubled by some aspects of the Council's
resolution regarding the"Living Wage Jobs Policy" to move beyond job creation and
accountability into areas unrelated to these goals. It sends the wrong message that job
creation in Saint Paul may be hindered by more unnecessary bureaucracy. It's a decision
that I believe is fundamentally unsound on basis economic principles.
However, after having reviewed this legislation with staff from the Department of Planning
and Economic Development, as well as the City Attorney's Office, it appears that this
language does not now, and should not in the future, have any negative impact on our
City's ability to create or retain jobs in Saint Paul. Accordingly, I have chosen to allow the
City Council's"Living Wage Jobs Policy" which passed on a 7-0 vote to be approved
without my signature.
Given that there are several situations in which waivers can be granted to businesses
seeking to do business in Saint Paul, I believe that there are enough safeguards in place to
ensure that these policy recommendations will do no harm to our continuing efforts to
� work with the private sector to create jobs and expand our economy.
However, if this language does become in any way, shape, or form, an impediment to
the creation or retention of one single job in Saint Paul, I will immediately request
that the City Council amend those provisions of the resolution which jeopardize
economic growth -- or that the Council considering repealing this resolution and
start over again. .
�
. . . �i � - ls � �
Council President Dave Thune and
Members of the City Council
Page Two
January 10, 1997
I will listen very closely to those in the private sector who have experience in job creation
and retention as the weeks and months pass and we continue to work hard to bring more
high-paying jobs to our City. If they can provide clear evidence that the Council's
decision to pass this language has a detrimental impact on our economic development
efforts, I will not hesitate to come before you immediately for decisive action on your part
to keep our economy moving forward.
As always, we will continue to perform the necessary oversight throughout our lending
process in the use of public tax dollars and maximize the economic impact of those dollars.
Sincerely,
b� �l�
Norm Coleman
Mayor
cc: St. Paul Area Chamber of Chamber
John Labosky
Steve Holupchinsky
�� �����-
This resolution will be brought in Council File#
by Councilmember Harris
Green Sheet#
RESOLUTION
CI Y OF SAINT PAUL, MINNESOTA ,
Presented b � ' v ' `—' �Y � ��
Y
Referred To Committee Date
1 WHEREAS, the importance of economic development growth for the future economic vitality of Saint
2 Paul households is recognized; and
3 WHEREAS, the public policy objective of the City of Saint Paul is to assist in the creation and/or the
4 retention of the maximum number of living wage jobs possible; and
5 WHEREAS, the City of Saint Paul recognizes that the City does provide from time to time public financial
6 participation in economic development projects in order to create and retain living wage jobs; and
7 WHEREAS, the creation and retention of living wage jobs in an economic development project is one
8 of the public purpose objectives to be achieved;
9 NOW, THEREFORE BE IT RESOLVED:
10 1) Job creation or retention assistance should require the creation or retention of full time jobs
11 with a living wage except when any of the following conditions are met:
12 a) the cumulative assistance package totals less than $100,000 in any one fiscal year;
13 or
14 b) the business receiving the assistance is a small business as defined by Minnesota
15 Statute 645/445; or
16 c) the recipient is an intermediary, such as a community development corporation or
17 the community bank, which serves as a pass-through agency for the granting of
18 assistance;
19 d) The recipient is a business in its first year of existence.
20 For purposes of this provision, assistance should be broadly defined as loans, bonds,
21 grants and City tax incentives, excluding conduit bonds;
22 2) That redevelopment projects whose only public assistance is site remediation, investigation
23 and assembly will be exempt from monitoring and sanctions requirements;
24 3) That a living wage will be defined and indexed as 110 percent of the federal poverty level
25 for a family of four, or, 100% of the federal poverty level for a family of four for businesses
26 that provide basic health insurance coverage. Any business unable to pay all or part of the
27 living wage, must provide a detailed explanation to the Department of Planning and
28 Economic Development.
1
�`� --/S/�-
1 4) That the City have a goal that 60 percent of jobs created should be held by Saint Paul
2 residents; in addition to existing advertizing efforts, these jobs should also be advertised
3 to the community through a community-sponsored organization and/or job linkage
4 program;
5 5) That the City of Saint Paul will focus its job creation and retention assistance at businesses
6 that demonstrate a commitment to providing living wage jobs to their employees and it
7 residents when applicable;
8 6) That the City of Saint Paul and the Saint Paul Port Authority will impose sanctions for non-
9 compliance with these requirements;
10 7) That the Saint Paul City Council shall designate staff to monitor and prepare an annual
11 report on compliance with these requirements;
12 8) That the City of Saint Paul exempt organizations whose primary mission is to provide job
13 readiness and training services, and whose sole purpose of requesting funding is to
14 provide those services;
15 9) That the City of Saint Paul will work with the Metropolitan Council and other appropriate
16 state and regional agencies and the legislature to promote common standards consistent
17 along these guidelines for job creation and retention assistance by public development
18 agencies throughout the region;
19 10) That the City of Saint Paul will commit to assist area businesses to obtain trained and
20 work-ready employees and to facilitate access to child care, as well as public transportation
21 systems.
Yeas Na s Absent Requested by Department of:
Blakey
Bostrom
Guerin
Harris
Megard By:
Rettrnan �
Thune Form Approved by City Attorney
By:
Adopted by Council: Date
Adoption Certified by Council Secretary Approved by Mayor for Submission to Council
By: By:
Approved by Mayor: Date
By:
Joint Minneapolis Saint Paul Living Wage Jobs Task Force � �`�S��'
Saint Paul Delegation Members in Favor of the Task Force Recommendations:
CO-CHAIR Mary Ann Sudeith,Vice President Community Reinvestment,FIRSTAR
Dick Anfang, Executive Secretary, Saint Paul Building Trades
Gene Goddard,MN Dept. of Trade and Econ. Dev't, Business and Comm. Dev't Div.
Bernie Hesse, United Food and Commercial Workers, Local#789
Kristine Jacobs, Executive Director,JOBS NOW Coalition
Mary Jo Maynes, Steering Committee, Progressive Minnesota
John McCarty, CEO, Saint Paul Development Corporation
Mara O'Neill,Program Coordinator, Neighborhood Development Center
Deborah Schlick, Saint Paul Citizen
Bill Turner, Career Counselor,UAW Dislocated Worker Program
Saint Paul Delegation Members Opposed to the Task Force Recommendations:
Steve Holupchinski, President, Midway Chamber of Commerce
Saint Paul Delegation Members Not Votina on the Task Force Recommendations:
James Battle,Pastor, Mount Olivet Baptist
Tim Rogers,Former President, Saint Paul Chamber of Commerce
Minneapolis Delegation Members in Favor of the Task Force Recommendations:
CO-CHAIR Rebecca Yanisch, Executive Director,Minneapolis Community Development Agency
Sunday Alabi,Association of Community Organizations for Reform Now (ACORN�
Alton L. Bennett,Association of Community Organizations for Reform Now (ACORN)
Alexa Bradley,Associate Director, Minnesota Alliance for Progressive Action (MAPA)
Tom Burke, Vice Pres., Commercial Banking,Norwest Bank Minnesota, NA
Steve Cramer, CEO,Project for Pride in Living (PPL)
Denny Donaldson, CEO, Nico Plating
Martin Goff,Vice President/Field Representative, Hotel and Restaurant Workers Local#17
Bill Lahr^, CEO, Buxnper to Bumper Auto Parts
Dale Means, Director,American Indian OIC, Community Job Training Center
Evelyn Miks, International Union Area Director,AFSCME
Tom Palmer, President, Franklin National Bank and University National Bank
Ray Waldron,President, Minnesota Building Trades Council
Minneapolis Delegation Members Were Opposed to the Task Force Recommendations:
None
Professional Staff to the Task Force:
Marcia Moermond, Policy Analyst,Saint Paul City Council Research Center
Iric Nathanson, Finance Coordinator,Minneapolis Community Development Agency
Clerical Support to the Task Force:
Racquel Naylor, Saint Paul City Council Research Center
Virginia Parent,Minneapolis Community Development Agency
'�Please see Mr.Lahr's letter where he notes that he endorses all the recommendations except numbers 10, 11 and 12.
12-04-1996+12:40 16126447204 Midwest Auto Parts Dist. P.01
� �� �S �a-
WILLIAM V. LAHR
2566 KASOTA AVENUE
SAYNT PAUI.� MINNESOTA 55108
Talephone 812 644-8498
12/4/96
Ms Rebecca Yaniach, uireator
Minneapolis Conumunity Develogment Agency
�05 5th Avenue South, i1200
Minneapolia MN 55401
DeaY Rebecca,
I was unable to �ttend the laat meeting of the Joint Livinq Wege
• Task Force but wiah to votd in favor of the final draft report with
the following exceptiona:
- by way of clazl�ication, I, and I beleive th� Task Force members,
conaider point 5 to be a goal aot a mandate.
- I consider points 10,11 and 12 to be Taak Fosce recommendationa
�, within our charge. Theee point� attempt to make labor
relntiona or contxacting out policy zecommendations, areas of
concern I beleive not contained in the two City council
Reaolutions.
3lncerely,
�'\/
i
i
�
�
� �
I �
i
. ; I � I
: j I
I,i
i�
' I i
,
I
�1 c�—\S\ �.
S �,
December 11, 1996
��. . �l � �a°l�
St. Paul City Council Members
Third Floor
City Hall
St. Paul MN 55102
Dear Council Members:
On behalf of the members of the Minnesota Retail Merchants Association and the Minnesota Chamber of
Commerce,we would like to provide comment on the proposed"living wage" proposal and urge you to reject this
wage mandate. Our associations have positions which oppose one size fits all mandates such as this.
We do,however, support efforts to achieve accountability and oversight for state and local economic development
programs. We agree that economic development funds should be used wisely and should pursue a variety of
jobs. In addition, the city should establish a clear policy regarding its efforts to create jobs. However, there are
many aspects of this wage mandate which would be counterproductive to your stated goals.
We encourage you to oppose the wage mandate for the following reasons:
*The wage mandate harms opportunities for entry level employment and ignores the
value of all jobs - This proposal will discourage the development of valuable entry level employment--
particularly within businesses which have a wide range of job opportunities available. This is because the
proposal applies the wage requirement to all employees witYun the facility receiving the economic development
funds. As a result,badly needed entry level jobs - - which hold opportunities for advancement and increased
wages - -will be lost to cities without a mandate. Individuals needing the supervision, training, and skills
provided by entry level jobs will be prevented from this opportunity in St. Paul. The availability of entry-level
' jobs are crucial as the state implements welfare reform.
*The wage mandate resolution is inflexible - The proposal is an inflexible standard by which the
city economic development agency must abide. It does not allow for adaptation to changing economic conditions.
Nor does it recognize wage differences between regions of the state or industries.
*The mandated wage is indexed -Each year the US Department of Health and Human Services
updates the federal poveRy guideline to reflect the previous years price change. By setting the state mandated
wage equal to the federal poverty guideline for a family of four, the city is automatically increasing wages without
subsequent productivity gains for impacted businesses.
*The wage mandate resolution will make it difficult for St. Paul to compete - Businesses
will find St. Paul unattractive out of concern for the wage mandate and other requirements. If the goal is to bring
good jobs to St. Paul, this will surely be counterproductive. Businesses would have a strong incentive to go
elsewhere because competition is fierce among cities and St. Paul would be a loser more often with such a
mandated wage requirement.
We should also remind you that the voters of St. Paul have rejected the mandated wage approach. Again, we
encourage efforts to set a clear policy for economic development and to require accountability in your economic
development agreements. These goals can be achieved without an unproductive wage mandate.
Sincerely,
ry�►G,D�f
9 � ���/
G� ' -���
�
vudy . Cook Thomas A. Hesse
Pres ent Director,Fiscal and Workforce Policy