03-1144Council File # ���
Green Sheet # ��g'�
RESOLUTION
OF SAINT PAUL, MINNESOTA Z9
Presented
Referred To
Coxnmittee Date
Resolution Establishing a Working Group on Equal Access to Ciry Contracts and Setting a Deadline of January
19, 2004, for a Final Report on Recammended Actions for City Council Consideration
1 4VHEREAS, the City Council conducted a policy session and public hearing on promoting "Equal Access to City
2 Contracts" on November 12, 2003, and
3 WHEREAS, the City Council directed Council Research to prepare a follow up report on the policy session and
a public hearing summarizing the tesrimony and information provided and the potential actions that the City Council
5 should consider to promote the City's efforts to provide equal access to City contracts for minority owned and
6 women owned businesses, and
7 WHEREAS, the City Council discussed the report presented by Council Research at iYs regular meeting on
s December 17, 2003, and
9 WIIEREAS, the City Council wants to move fonvard swiftly on this important community issue to promote and
to expand equal access to City contracts for women owned and minority owned businesses, now therefore, be it
11 RESOLVED, that the City Council hereby requests the Mayor's cooperation to establish a worldng group to be made
1z up of representatives from the Administration, Council Research, and several community organizations, and be it
13 FURTHER RESOLVED, tk�zt the City Council requests that the following City staff, or appropriate alternates, be
ta assigned to the working goup: Martha Fuller, Readus Fletcher, Tyrone Terrill, Linda Camp, and Bob Haimner
15 together with Council Research and Ward staff, and representatives from community organizations such as the
t 6 National Association of Minority Contractors, Women Venture, and the Neighborhood DeveIopment Corporation,
17 and be it,
18 FURTHER RESOLVED, that the working group shall prepare, in consultation with the City Attorney's Office, three
19 to five top priority recommendations for action based on the report of Council Research submitted the City Council
20 on December 17, 2003, which report is attached hereto, and be it
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1 FINALLY RESOLVED, that the recommendafions developed by the worldng group be completed by January 19,
z 2004, and presented to the City Council for consideration at a policy session on January 21, 2004, in the form of
3 separate City Council Resolutions which each contain specific acrions that will effecrively promote and expand the
a City's efforts to provide equal access to City contracts for women owned and minority owned businesses
5 commensurate with Twin Ciries market availability of such businesses.
Requested by Department of:
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Form Approved by City Attorney
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Approved by Mayor for Submission to Councfl
Adoption Certified by CouncIl Secretary
By:
By:
Approved by Ma Date l` �; � � �
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!/
Adopted by Council: Date ��-'�`'�� -13 � ODJ
o3
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet
DepartmeMloffice/council: Date Initiated:
co ���, 1&DEG03 Green Sheet NO: 3009375
Contad Person 8 Phone:
Deoartmenf Sent To Person InitiaUDafe
Councilmember Blakey 0 ooucil
26G8610 pssign 1 ouncit
Must Be on Council Agenda by (Date): Number Z � Clerk
23DEC-03 For
Routing 3
Order 4
5
Total # of Signature Pages _(Clip AII Locations for Signature)
Action Requested:
Establisbing a Working Crroup on Equal Access to City Contracts and setting a deadline of January 19, 2004, for a final report on
recommended acrions for City CouncIl consideration.
Recommendalions: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Followiqq Questions:
Planning Commission �, Has this person/firm ever worked under a contract for this departmenY?
CIB Committee Yes No
Civil Service Commission 2. Has this persoNfirtn ever been a city employee?
Yes No
3. Does this persoNfirtn possess a skill not normally possessed by any
current city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
AdvantageslfApproved:
DisadvanWAes If Approved:
Disadvantages If Not Approved:
ToWI Amount of CosURevenue Budgeted:
Transaction:
Funding Source: Activily Number:
Fi nancial Information:
(Explain)
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CITY OF SAINT PAUL
OFFICE OF THE CITY COUNCIL
A7EMORANDUM
DATE:
TO:
COPY:
December 17, 2003
Council President Daniel Bostrom
Councilmember Jay Benanav
Councilmember Jerry Blakey
Councilmember Chris Coleman
Counciimember Patrick Harris
Councilmember Lee Helgen
Counciimember Kathy Lantry
Councilmember-Elect Deborah Montgomery
Councilmember-Elect Dave Thune
Martha Fuller, Planning and Economic Development Department Director
Matt Smith, Financial Services Director
Tyrone Terrill, E3uman Rights Department Director
Linda Camp, Contract and Analysis Services, Purchasing System Manager
FROM: Marcia Moermond, Policy and Research Lead Mp�,�.�
Bob Kessler, FinanciaU Policy Analyst.
�
RE: Follow Up to Policy Session on `Bqual Access" in City Contracting
03
The policy session held on November 12, 2003, raised a number of questions about the City's
role in promoting equal access to City Contracts. The foilowing is a summary ofpotential
actions the City can take. These aze based on the issues touched on in the testimony at the public
hearing, the background report, and other information provided by Councii Reseazch prior to the
session in the Council's meeting packet. Some of the actions mentioned relate directly to
testimony and the materials, while others aze logical courses of action based on the testimony and
materials. We have conducted only the mosY rudimentary analysis of these, expecting thai we
will prepaze work programs for those azeas where the Council specifically directs action.
✓ Explore the potential Council requirement of department annual reports on vendor
and contract usage. The reports would indicate which vendors were used for purchasing
and contracting activities, the proportion of certified vendors/contractors used, the overall
dollars spent on outside vendorslcantractors, and those dollazs expended using certified
vendors/contractors. Ideally, ihis information could be compared to mazketplace/
community information and the availability of certified vendors/contractors for the
affected areas. Tlvs annual report could possibly be integrated into the City's annual
budget process.
2. ✓ The City's marketplace data used for City's Vendor Outreach Program needs to
be updated. It is important for the program information to be based on the number of
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Equal Access Policy Session Follow Up
Page 2 �/�_����
currently available minority and women owned firms in Saint Paul and the Twin Cities
region — so appropriate program goal numbers can be established. The City is currently
using numbers developed in 1996, as a part of the Disparity Study. We know there has
been rapid growth in the minority popularion in the State of Minnesota as indicated by the
2000 census and data compiled by the Metropolitan Council. But the growth in minority
and women owned firms does not necessarily parallel the growth of population numbers.
A current assessment of the availability of minority owned and women owned firms
could be conducted based on the 2002 US Census Business Survey, and other data
sources, in cooperation with the three other jurisdictions that make up the Vendor
Outreach Program, Ramsey County, Hennepin County, Minneapolis and Saint Paul
Schools.
3. ✓ A current assessment of the minority and female workforce also needs to be done
based on census information, other demographic factors, and union data. The current
"monitoring figures" used by Human Rights are: 143% skilled minority, 15.4% unskiiled
minority and 9.4% women (both skilled and unskilled). In particular, Tyrone Terrill
indicated that the figures had not been updated in about ten years, and that he believes the
the figure used for skilied minorities could be increased to from 143 to 24%
(approximately a 70% increase).
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Conduct a study of certified vendors/contractors which splits out data by race/
ethnicity to determine if race/ethnicity-specific goals should be used.
Conduct a study of �i�orkforce availability and usage by race/ ethnicity to determine if
race/ethnicity-specific monitoring figures should be used by Human Rights.
6. Conduct an in-depth review of certified vendors/contractors to determine if and what
proportion of these aze on the City's list and should not be, because they are not qualified
to be certified (minority or woman-owned, or small business).
Contrary to some of the testimony provided by many in attendance at the policy session,
the results of the City's efforts under the requirements of Chapter 84 in awarding
contracts to women owned and minority owned firms aze closely aligned with the
marketplace data established for the program, as is shown in the "On TargeY' reports.
Some of the testimony received on November 12, 2003, called for the City to "conduct an
independent audit to see what is happening with contracts" from the Department of
Planning and Economic Development and other City agencies. However, the data
provided to the City Council for the Policy Session identifies the total number of
contracts and dollars expended by the City and the number and amount of contracts
provided to minority owned, women owned, and small businesses. These reports indicate
there is no missing information.
7. Conduct an in-depth review of the workforce data provided by vendors/contractors
to the City's Department of Human Rights to determine if the actual employee
information matches the information provided for monitoring purposes.
Equai Access Policy Session Follow Up
Page 3 O J' ����
8. Conduct a"disparity stud�' specifically addressing potential inclusion into the Vendor
Outreach Prograin ofvendors/contractors who are disabled. An abbreviated version of
the 1996 Disparity Study may be possible, based on the amount of information and
analysis conducted at that rime.
9. ✓ Conduct a policy and legal analysis to determine if disabled workforce monitoring
"goals" should be added for monitoring by the Department of Human Rights.
10. Conduct a policy and tegal analysis to determine if City policies should be changed
beyond �i�hat the Croson decision suggests; e.g. eliminate smail businesses from
Vendor Outreach Program, or increase expected minority and woman-owned business
participation in contracts to a levei above what wouid be considered proportionate to the
mazketplace.
11. ✓ Make existing City reports on certified vendor/contractor usage more broadly
available, perhaps by posting "On TazgeY' reports on the City's web site or creating a
mailing list inclusive of interested community organizations.
12. ✓ Make existing City reports on contractor workforce usage (women and skilled
and unskilled minority employees) more broadly available, perhaps by posting Human
Rights monthly "Department Updates" memorandum on the City's web site or creating a
mailing list inclusive of interested community organizations.
13. ✓ Make cleazer the appropriate procedures for alerting the City about potential
misrepresentation of 1) vendors/contractors as being eligible for the certified vendor list;
and 2) contractor emp]oyee/workforce data indicating (more) women and minority
employees than (aze believed to) exist. There were concerns expressed in the testimony
that certain minority or women owned firms aze "fronts" for the actual ownership of firms
by majority individuals. There aze no specific allegations with regard to firms that aze
alleged to be "fronts" for majority owned businesses. The Vendor Outreach Program has
a process for investigating complaints. Moreover, the City's program is reviewed and
audited by the state and federal government.
14. ✓ Make information on how to become a certified vendor more broadly available, e.g.
website and other outreach activities.
15. ✓ Pursue addirional outreach efforts to broaden the base of certified vendors/
contractors. This could take the form of regulaz informational and outreach meetings
with minority and women owned businesses, and organizations that represent and serve
minority owned and women owned businesses, to provide assistance to eligible
businesses to become a certified minority or women owned business.
16. ✓ Continue and expand efforts of lYlinority Business Development and Retention
(MBDR) Initiarive; the goals of this program being: 1) increased participation in contracts
and development; 2) increased employment of women and minorities on City contracts;
and 3) increased support and assistance to sma11 businesses, especially those owned by
women and minorities.
Equal Access Policy Session Follow Up
17.
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✓ Pursue efforts to bolster the diversity of tHe City's «•orkforce.
Page 4 ��~ `���
✓ Pursue efforts to encourage "posifive attitudes" in City workforce about
encouraging participation of nontraditional vendors and contractors on City (funded)
projects.
19. ✓ Modify the Housing and Redevelopment Agency (HRA) Board Reports, or associated
materials, to include and explicit discussion of the measurable public purpose goals to
be addressed by a project. These goals could include items such as the number of
housing units to be produced, whether those units aze affordable and to whom. It could
also include information on the job crearion and/or retention associated with the project
and if the jobs created pay living wages and prevailing wages. Finally, there could also
be an explicit accounting of certified vendor/contractor participarion. Notably, the
department believes that while in some cases this information may be available by the
time a project needs to be brought forward Yo the Board, in other cases, the informaYion
may not be available, as planning has not progressed that far. Therefore, a second level of
accountability is suggested in the next item.
20. ✓ Quarterly reports to the Council/HRA Board could be developed which provide an
explicit statement of the public pwpose goals to be addressed by all "active" PED/HRA
projects. Monitoring information on progress towards reaching these goals could aiso be
provided. These reports could be prepared to address just PED/HRA projects, or they
couid be Citywide in nature (but with department-specific informarion), as is the case
with the "On TargeY' report.
Conclusion
There aze several points which should be made in conciusion. First, many of the items listed
above fall reasonably under the Council's budget, legislative oversight and policy-making
responsibilities. Some aze cleazly the responsibiliry of the Administration, and other items aze
both. There has been no attempt to divide the items on this basis, although the kind of action the
Council may take wiil be tempered by this type of consideration.
Second, our main goal was to sunmiarize the issues and potential action items. We made a
significant effort to focus on the issues presented, rather than the type of foliow-up which should
occur, and who should be responsible. An example of what this means is that the Council may
have received testimony about having an outside audit of certified vendors/contractors, with a
goal of ferreting out those which may not be eligible for participation ("fronts"). Our effort was
to talk about this as a potential area for study or enquiry, and we didn't suggest a potential agency
or consultant to conduct the work. Relatedly, many of the areas being discussed are akeady
covered by several layers of oversight. Consequently, some of the concems raised may be
addressed (in part or in whole) already in existing oversight measures. In generai; we
recommend choosing the level of government responsible for oversight to conduct "audiY' type
activities. A reference grid is attached. Based on how the Council frames its questions and
concerns, we plan to develop appropriate strategies.
Equal Access Policy Session Follow Up
Page 5 ��' �`��
Thirdly, we endeavored to provide the Council with some of our thoughts on areas which we
think should be pursued sooner than later. These items have a check mark (.� before them.
Finally, we ask that the Council continue its discussion of follow-up activities in order to get
additional feedback from those individuals and organizarions who participated in the policy
session. We, in Council Reseazch, aze currently experiencing high volume of work related to the
elections, inauguration, budget and other important policy issues. Therefore, we have only been
able to get very rudimentary feedback from City deparhnents, and none from other affected
stakeholders.
Please let us know if you have any quesrions regarding this matter.
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