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97-1242Council File # {� �,Zy�+ Green Sheet # �s0 �oZ,Q RESOLUTION CITY OF 2 0 6 7 Presented sy Referred To Committee: Date RESOLUTION ACKNOWLEDGING RECEIPT OF AND ACCEPTING A REPORT FROM THE DEPARTMENT OF PLANNING AND ECONONIIC DEVELOPMENT ON THE IMPLEMENTATION OF THE LIVING WAGE POLICY a� WHEREAS, on Januaty 2, 1997, the City Council passed resolufion 96-1512 Accepting and Adopting the Policy Recommendations ofthe Joint Saint Paul-Minneapolis Living Wage Policy Task Force; and 8 WHEREAS, the Department of Plauning and Economic Development was designated to develop 9 administrative guidelines for the implementation of ttus policy; and 10 11 WHEREAS, the Department of Planning and Economic Development returned to the Council on 12 Februaz•y 5, 1997 with both Short-term Administrative Guidelines that could be implemented by March I S 13 and Long-Term Guidelines that would require more work prior to implementation; and 14 15 WHEREAS, City Council reviewed and accepted those Guidelines; and 16 17 WHEREAS, the Deparlment of Planning and Economic Development was also designated to monitor 18 and report on compliance with these Administrative Guidelines now, therefore be it 19 � � 20 RESOLVED, that the Saint Paul City Council acknowledges receipt of and accepts this report from the 21 Department of Planning and Economic Development on the implementation to date of the Living Wage 22 policy for the City of Saint Pau1. ?3 ?4 Requested by Department of: By: Form Approved by City Attorney Adoption Certified by Council Secretary By: Approved by Mayor: Date ! c�l ( i. �_jc� �c //1 Hy: // PAUL, MINNESOTA By: Apprwed by Mayor £or Submission to Council By: GREEN SHEET Councilmember �$S�GN NUYBER f-0R TOTAL # OF SIGNATURE PAGES Acknowledging receipt of & accepting a report from the Department of Planning and Economic Development on the implementation of the living wage policy. vun� ��n approve �a� w rce�ecc � PLANNING COMMISSION CIB CAMMITTEE CiVIL SERVICE COMMISSfON u��� u��- ❑ pfYAT�ORNkY ❑ CRYCLiMIt ❑ RNMqRliF0.VICEfOYI ❑ RMNCMLfE0.Yf�CCT6 ❑wvort�on�smr�nn ❑ (CUP ALL LOCATIONS FOR SIGNATURE) Hastl»a PeBOM�m eder waketl urMer a contract for tltis department4 VES NO Has ihis PeraoNfirtn avM Eeen a citY emPbYee9 YES NO Dcesihie Personlfi�m 0� a slfili not nqrtwlryP� M' �N �urrerrt cilY �PbY� YES td0 IsttHapeisot�nnatargetedvendoYt . YES NO �t? -��.ya- r,o 60728 )TAL AMOUNT OF TRANSAC710N S COST/REYEfiUE BlfD6ETED (CI0.CLE ONE� �L�:L•: N1DIN6 SOURCE ACT1VIiY fiUMBER ANCl4L INFOIiM42iON (DlPWN) 9� - f�.y�- REPORT TO SAINT PAUL CITY COUNCIL ON IMPLEMENTATION OF LIVING WAGE RESOLUTION 96-1512 On January 2, 1497 Ciry Councii passed Resolution 46-1512 establishing a Living Wage Policy for any Economic Development project receiving over $100,000 (cumulative in any one fiscal year) in City assistance in which jobs aze created or retained. City Assistance was broadly defined as loans, bonds, grants, and City t� incentives. The Department of Planning and Economic Development was charged with implementing this resolution and reporting to City Council on the outcomes. In March, 1997 PED staff presented the Administrative Guidelines for implementation of the program. These were divided into Short Term (immediately doable) and Long Term (requiring more coordination and planning). [Copy is attached as Ea�hibit A] These Guidelines were accepted by City Council. PED staff was to return to City Council with the Long Term Guidelines in the suimner. SAORT TERM IMPLEMENTATION � Training session were held for PED Account Officers and subgrantees in March on the Living Wage requirements and reporting. �> Inforniation on Living Wage requirements is included in each Compliance meeting that is held for subgrantees receiving STAR loan or grant money. � Information sheets were prepazed for PED Account Officers to have as a ready reference when they are working with businesses applying for City funding. [E�chibit B] � PED staff is also prepazing a brochure that can be given to businesses to explain the Living Wage requirements. � Account Officers were informed when the Federal Poverty Guidelines were updated with 1997 figures. Hourly wages required without health benefits aze now $8.49. Hourly wages required if health benefits are given employees are $7.72. Staff has located the information on the Internet so that updating of required hourly wages can be done as soon as the Federal Poverry Guidelines are posted by the U.S. Department of Health & Human Services. � Schedule of businesses subject to living wage requirements is shown in the table on the next page. Projects aze added to the table when they go through PED Credit Committee to finalize the financing. a� � 1 zy � LIViNG WAGE REPORT TO SAfNT PAUL C1TY COUNCIL Name i$ Amount � Date of Job Creafion Anticipated Hourly Wages � I Assistance FT PT Inc 1997 $16.85 261 E Sth not not School � $7�� � not closed 10(YR 1 Mazket � $740,220.00 nat close 55 $6-15 ;s Familv Care Ctr*** I $100_000.00� not close 0 OT LONG TERM IMPLEMENTATION � Job Linkage --The City has become an active partner in the Ramsey County Community Parmership for Welfare Reform, which is working to develop a centralized system to allow employers to list their job openings . PED staff are warking with the Partnership because it has broadened its approach from welfare-to-work, to the more important economic development challenge of linking job seekers with jobs. The Partnership has also succeeded in engaging the business community over the issue of workforce development. Short-term, a single telephone number will be up and rutuiing this fall at the Saint Paul Workforce Center, using the NeighborLink electronic job listing system. Long- term, efforts aze underway to create a Community Employment System with two components: a centralized workforce center for employers, and decentralized Work Resource Hubs for job seekers. Link'no the two will be integrated electronic information systems and staff skilled in serving business and job seeker customers. The first couple of Work Resource Hubs aze expected to open this January. � Businesses with Living Wage Jobs -- People take the work readiness skills they learn at entry Ievel jobs and advance to better jobs. For low-income residents seeking to enter the work force, finding a job with a good "job ladder" -- one with room to advance -- is better than starting at a living wage in a job with no oppornuiity for advancement. In Saint Paul, two globaily-competitive industry clusters stand out both for the number of entry- level jobs they create, and the number of jobs that exist for those who want to develop their sldlls and move up the ladder. 9�-��,y� Between them, the printing and health caze industries have hundreds of emry level jobs available, and many other jobs with good cazeer ladders. The printing industry, Uuough the Printing Industry ofMinnesota trade association, has developed its own job traiuing pmgraru and is reaching out to find and develop qualified candidates from non-traditional populations. The Health Care industry, through the Hospitat and Health Care Partnership, is exploring the creation of a pilot program with the City and the Port Authority to develop a customized training program not only for the 500 entry-level jobs they estimate aze available today, but trainiaig programs that will move existing entry- level workers up the job ladder. � Child Care — The City has been involved in increasing the supply of child care primarily by financing improvements through PED's home rehab finance programs. In response to welfare reform, the State has guaranteed fuli funding for welfaze-to-work child care, and the Ramsey Counry Community Partnership for Welfare Reform, with a grant from the McKnight Foundation, is developing a three-pronged strategy for delivering on this guarantee. The first strategy is to develop the capacity of existing child-caze providers to provide more child care and evening child care (the area where our e�sting prograans will be most effective). The second strategy is to streamline the reimbursement process so that providers can get paid more quickly (not an area where we are involved). And the third strategy is to develop a network of neighbarhood-based child-caze providers to provide them with information and support (an area where we will probably be involved as part of the neighborhood-based Work Resource Hubs that aze being developed). s� Transportation -- The State has provided Ramsey County with funding (estimated at $640,000 for two yeazs) for welfare-to-work transportation. A task force of the Ramsey County Community Partnership for Welfare Reform has developed a process for soliciting and awarding welfare-to-work transportation grants by the end of this year. The Ciry has been involved through staff attending task force meetings and by encouraging the Saint Paul Red Cross, probably the lazgest non-profit transportation provider in the Twin Cities, to submit a grant application. � Cooperation with other governmental entifies -- Duluth and Minneapolis haue passed Living Wage Resolutions within the past yeaz. The City of Vadnais Heights has insfituted a policy that a criteria far assistance given through TIF financing will be the ability of the business to provide "quality jobs." PED staff has also talked with city staff in Chicago and Los Angeles and at the National League of Cities about living wage proposals. � Responsible labor relations -- This is not PED's azea of speciality. However, where there are good labor relations in a company, it usually translates into a better project. That situation is considered a plus when a company applies for public assistance. 9� � t a.y �— Eghibit A City/I�2A Living Wage Jobs Policy Administrative Guidelines Implementation Highliglits - Short Term (See Living Wage Jobs Task Force Policy Recommandations attached) PED wi11 create a facdinformation sheet regarding the Living Wage Jobs Policy and PED account officers will provide businesses that are seeking public financing with these requirements. 2. Job creation goals will be defined for each project (in conjunction with state corporate welfare legislation) and will become part of the contracUloan agreement for each project. 60% of new hires will be required to be Saint Paul residents. 3. Any business receiving pubiic fmancing assistance from the CityBRA for the purpose of economic development in which jobs are created or retained, will be required to remit a copy of its Quarterly Wage Detail Report on an annual basis as a function of servicinglmonitoring by PED account officers. The State requires businesses to file this report following each calendu quarter to report unemployment insurance. The Quarterly Wage Detail Report consists of an employee roster, weeks worked and wages earned during the quarter. Currently, I3RA uses this format to verify employment levels and satisfy reporting requirements for the Strategic Investment Fund loan program. In addition to a copy of the report, businesses must provide an affida�it certifying any new hires and whether they reside in the city of Saint Paul. 4. The Public Pwpose form, adopted by Council, with addition of a check-off to report businesses subject to the Living Wage Jobs Policy (as defined by City Council Resolution adopted U2J97), will be used as a controi mechanism for monitoring and reporting. See attached draft. Monitoring will be done by PED account officers and reported by compliance staff to City Council annually on April 1(in conjunction with report requirements for corporate welfaze). 5. Any business unable to pay the living wage must provide a detailed explanation to PED, which, upon review, may tecommend to the City CounciUHRA a waiver to ttris requirement. This waiver may be granted by resolution. Businesses requesring waivers may choose to request a waiver upon initial applicafion review, at time of HRA/Council approval, ar any time after receiving financing if the business finds it is unable to meet established requirements. 6. Language will be added to contracdloan agreement documents for businesses subject to the Living Wage Jobs Policy to provide that failure to comply will result in a default. Options to remedy (sanctions) the default include: A. Accelerate loan (demand note) �'� '� a ' y � B. Increase interest rate to mazket rate PED is prepared to nnplement the Laving Wage 7obs Policy by Mazch 15, 1997, for business that have made inirial contact about PED programs and support after January 2, 1997. PED will identify those businesses as we seek approval from the I�Rt-1 Boazd. DRAFT Impiementation Highlights - Outstanding Long Term Issues (See Livina Wage 3obs Task Force Policy Recommendations attached) More fully develop a process to advertise jobs created to the entire communiry includ'uag low-income people through community-sponsored arganizafions or job linkage progra.tns. Utilization of the NeighborLink Enterprise Community Project will be used as a focus point for the advertising of all new jobs that are created via city economac development projects. 8. More fully define and develop a process to focus job creation and retanfion at businesses which provide living wage jobs to its employees by giving priority over businesses which have not traditionally paid living wages. More cleazly define "tesponsible labor relafions" and preferential status for assistance to businesses that engage in responsible labor relations. 10. The City of Saint Paul Intergovernmental Relations staff will work with the Metropolitan Council and other appropriate state and regional agencies and the legislature to promote standazds consistent with these guidelines for job creation and retenfion assistance by public development agencies throughout the region. 11. Trained and work-ready empioyees and facilitation of access to child care and public transportation should be addressed by building on the existing system and within the development of a comprehensive job readiness program. A proposal will be developed by PED's Workfarce Development Division. PED will draft a proposal addressing implementation of these outstanding long term issues of the Living Wage Jobs Policy by June 10, 1997. EXI�BIT B CITY OF SAINT PAUL LIVING WAGE REGULATIONS �� -1 a�t �- On January 2, 1497 City Council passed Resolution 46-1512 establishing a Living Wage Policy for any Economic Development project receiving over $100,000 (cumulative in any one fiscal year) in City assistance in which jobs are created or retained. City Assistance was broadly defined as loans, bonds, grants,and Citytax incentives. The Resolu6on excluded from these requirements the following: 1. Conduit bonds. 2. Small businesses as defined in MN Statute 645.445. 3. Intermediaries, such as a community development corporation or community bank, which serves as a pass-through agency for the granting of assistance. 4. Business in its first year of existence. {However, regulation will go into effect with the second year of existence. 5. Redevelopment projects whose only public assistance is site remediation, investigation, site assembly_ REQUIREMENTS: 1. Living wage is defined as ll 0% of the Federal poveriy guidelines far a family of four ($8.49 for 199?). If the business provides employer-paid basic health insurance coverage, living wage is defined as 100% of the of the Federal poveriy guidelines for a family of four ($7.72 for 1997). 2. Any business unable to pay the living wage must provide a detailed explanafion to PED, which, upon review, may recommend to the City CounciUHRA a waiver to this requirement. This waiver may be granted by resolution. Businesses requesting waivers may choose to request a waiver upon initial application review, at time of HRA/Council approval, or any time after receiving financing if the business finds it is unable to meet established requirements. 3. Job creation goals will be defined for each project (in conjunction with state corporate welfare legislation) and will become part of the contract/loan agreement for each project. 60% of new hires will be required to be Saint Paul residents. 4. Language will be added to contract/loan agreement documents for businesses subject to the Living Wage 7obs Policy to provide that failure to comply wilt resutt in a default. Options to remedy (sanctions) the default include: A. Accelerate loan (demand note) B. Increase interest rate to market rate 5. Any business receiving pubiic financing assistance will be required to remit a copy of its Quarterly Wage Detail Report on an annual basis as a function of servicinglmonitoring by PED account officers. The State requires businesses to file this report following each calendar quarter to report unemplopment insurance. The Quarterly Wage Detait Report consists of an employee roster, weeks worked and wages eamed during the quarter. In addition to a copy of the report, businesses must provide an affidavit certifying any new hires and whether they reside in the city of SainY Paul. amcvwre sePremner i99� q�-1a.�� EXHIBIT B continued Account Officer Guide Living Wage/Corporate Welfare Process Assistance includes loans, grants, City tax incenrives, bonds (except conduit bonds are e%cluded). Step 1. Apply this matria to the project to determine if eitherlboth Corporate Welfare and Living Wage regulations apply: Criteria Corporate Welfare Living Wage applies applies Assistance is for economic devel'mt in �Y XXX which jobs are created or retained Assistance is more than $25,000 but less X�'Y DOES NOT APPLY than $100,00Q in one fiscal year Assistance is more than $100,000 XXX XXX [cumulat3ve in any one fiscal year] Assistance is for site remedia6on, DOES NOT APPLY DOES NOT APPLY investigation & assembly Assistance is for small business as defined � DOES NOT APPLY by MN Statute 645.445, e.g. 20 or fewer employees; Less than $1,000,000 gross revenues in preceding fiscai year; ar Less than $2,500,000 if a technical or pro- fessional service; Is not an�liate or subsidiary of a business dominant in its field of operation. Recipient serves as a pass-through agency DOES NOT APPLY DOES NOT APPLY for assistance such as CDC, bank, etc. Recipient is a business in its first year of XXX DOES NOT APPLY for existence first yeaz but does apply beginning with second year Recipient is a not-for-profit DOES NOT APPLY �'YX GO TO STEP 2 -i q�.��� �- Step 2. Compliance and Reporting Requirements Work with the recipient of the public financing to detennine: A. what are realistic job goals and wages for this entity to meet? • Sanc6ons will apply if goals are not met within two yeazs of receiving public assistance. • These requirements will be part of the contract/loan agreement. • 60% of new hires must be St Paul residents. B.. Fill out a Public Purpose Sumuiary. • Check if Corporate Welfaze andlor Living Wage applies. • Indicate Job Creation and Wage goals as well as number of jobs retained. C. Include in the HRA/Credit Committee report the average wage the business currently pays its employees D. If assistance is approved by the IIRAICredit Committee, fill out a Corporate Welfare form if it applies and forward to Ann Copeland. E. Be sure proper language regarding Corporate Welfaze/Living Wage compliance and reporting is included in the financing agreement. F. Collect an initial Quarterly Wage Detail Report from the business. G. Annually, as part of the loan/grant servicing, coilect a Quarterly Wage Detail Report and a letter certifying iffhow job creation and wage goals have been met. Council File # {� �,Zy�+ Green Sheet # �s0 �oZ,Q RESOLUTION CITY OF 2 0 6 7 Presented sy Referred To Committee: Date RESOLUTION ACKNOWLEDGING RECEIPT OF AND ACCEPTING A REPORT FROM THE DEPARTMENT OF PLANNING AND ECONONIIC DEVELOPMENT ON THE IMPLEMENTATION OF THE LIVING WAGE POLICY a� WHEREAS, on Januaty 2, 1997, the City Council passed resolufion 96-1512 Accepting and Adopting the Policy Recommendations ofthe Joint Saint Paul-Minneapolis Living Wage Policy Task Force; and 8 WHEREAS, the Department of Plauning and Economic Development was designated to develop 9 administrative guidelines for the implementation of ttus policy; and 10 11 WHEREAS, the Department of Planning and Economic Development returned to the Council on 12 Februaz•y 5, 1997 with both Short-term Administrative Guidelines that could be implemented by March I S 13 and Long-Term Guidelines that would require more work prior to implementation; and 14 15 WHEREAS, City Council reviewed and accepted those Guidelines; and 16 17 WHEREAS, the Deparlment of Planning and Economic Development was also designated to monitor 18 and report on compliance with these Administrative Guidelines now, therefore be it 19 � � 20 RESOLVED, that the Saint Paul City Council acknowledges receipt of and accepts this report from the 21 Department of Planning and Economic Development on the implementation to date of the Living Wage 22 policy for the City of Saint Pau1. ?3 ?4 Requested by Department of: By: Form Approved by City Attorney Adoption Certified by Council Secretary By: Approved by Mayor: Date ! c�l ( i. �_jc� �c //1 Hy: // PAUL, MINNESOTA By: Apprwed by Mayor £or Submission to Council By: GREEN SHEET Councilmember �$S�GN NUYBER f-0R TOTAL # OF SIGNATURE PAGES Acknowledging receipt of & accepting a report from the Department of Planning and Economic Development on the implementation of the living wage policy. vun� ��n approve �a� w rce�ecc � PLANNING COMMISSION CIB CAMMITTEE CiVIL SERVICE COMMISSfON u��� u��- ❑ pfYAT�ORNkY ❑ CRYCLiMIt ❑ RNMqRliF0.VICEfOYI ❑ RMNCMLfE0.Yf�CCT6 ❑wvort�on�smr�nn ❑ (CUP ALL LOCATIONS FOR SIGNATURE) Hastl»a PeBOM�m eder waketl urMer a contract for tltis department4 VES NO Has ihis PeraoNfirtn avM Eeen a citY emPbYee9 YES NO Dcesihie Personlfi�m 0� a slfili not nqrtwlryP� M' �N �urrerrt cilY �PbY� YES td0 IsttHapeisot�nnatargetedvendoYt . YES NO �t? -��.ya- r,o 60728 )TAL AMOUNT OF TRANSAC710N S COST/REYEfiUE BlfD6ETED (CI0.CLE ONE� �L�:L•: N1DIN6 SOURCE ACT1VIiY fiUMBER ANCl4L INFOIiM42iON (DlPWN) 9� - f�.y�- REPORT TO SAINT PAUL CITY COUNCIL ON IMPLEMENTATION OF LIVING WAGE RESOLUTION 96-1512 On January 2, 1497 Ciry Councii passed Resolution 46-1512 establishing a Living Wage Policy for any Economic Development project receiving over $100,000 (cumulative in any one fiscal year) in City assistance in which jobs aze created or retained. City Assistance was broadly defined as loans, bonds, grants, and City t� incentives. The Department of Planning and Economic Development was charged with implementing this resolution and reporting to City Council on the outcomes. In March, 1997 PED staff presented the Administrative Guidelines for implementation of the program. These were divided into Short Term (immediately doable) and Long Term (requiring more coordination and planning). [Copy is attached as Ea�hibit A] These Guidelines were accepted by City Council. PED staff was to return to City Council with the Long Term Guidelines in the suimner. SAORT TERM IMPLEMENTATION � Training session were held for PED Account Officers and subgrantees in March on the Living Wage requirements and reporting. �> Inforniation on Living Wage requirements is included in each Compliance meeting that is held for subgrantees receiving STAR loan or grant money. � Information sheets were prepazed for PED Account Officers to have as a ready reference when they are working with businesses applying for City funding. [E�chibit B] � PED staff is also prepazing a brochure that can be given to businesses to explain the Living Wage requirements. � Account Officers were informed when the Federal Poverty Guidelines were updated with 1997 figures. Hourly wages required without health benefits aze now $8.49. Hourly wages required if health benefits are given employees are $7.72. Staff has located the information on the Internet so that updating of required hourly wages can be done as soon as the Federal Poverry Guidelines are posted by the U.S. Department of Health & Human Services. � Schedule of businesses subject to living wage requirements is shown in the table on the next page. Projects aze added to the table when they go through PED Credit Committee to finalize the financing. a� � 1 zy � LIViNG WAGE REPORT TO SAfNT PAUL C1TY COUNCIL Name i$ Amount � Date of Job Creafion Anticipated Hourly Wages � I Assistance FT PT Inc 1997 $16.85 261 E Sth not not School � $7�� � not closed 10(YR 1 Mazket � $740,220.00 nat close 55 $6-15 ;s Familv Care Ctr*** I $100_000.00� not close 0 OT LONG TERM IMPLEMENTATION � Job Linkage --The City has become an active partner in the Ramsey County Community Parmership for Welfare Reform, which is working to develop a centralized system to allow employers to list their job openings . PED staff are warking with the Partnership because it has broadened its approach from welfare-to-work, to the more important economic development challenge of linking job seekers with jobs. The Partnership has also succeeded in engaging the business community over the issue of workforce development. Short-term, a single telephone number will be up and rutuiing this fall at the Saint Paul Workforce Center, using the NeighborLink electronic job listing system. Long- term, efforts aze underway to create a Community Employment System with two components: a centralized workforce center for employers, and decentralized Work Resource Hubs for job seekers. Link'no the two will be integrated electronic information systems and staff skilled in serving business and job seeker customers. The first couple of Work Resource Hubs aze expected to open this January. � Businesses with Living Wage Jobs -- People take the work readiness skills they learn at entry Ievel jobs and advance to better jobs. For low-income residents seeking to enter the work force, finding a job with a good "job ladder" -- one with room to advance -- is better than starting at a living wage in a job with no oppornuiity for advancement. In Saint Paul, two globaily-competitive industry clusters stand out both for the number of entry- level jobs they create, and the number of jobs that exist for those who want to develop their sldlls and move up the ladder. 9�-��,y� Between them, the printing and health caze industries have hundreds of emry level jobs available, and many other jobs with good cazeer ladders. The printing industry, Uuough the Printing Industry ofMinnesota trade association, has developed its own job traiuing pmgraru and is reaching out to find and develop qualified candidates from non-traditional populations. The Health Care industry, through the Hospitat and Health Care Partnership, is exploring the creation of a pilot program with the City and the Port Authority to develop a customized training program not only for the 500 entry-level jobs they estimate aze available today, but trainiaig programs that will move existing entry- level workers up the job ladder. � Child Care — The City has been involved in increasing the supply of child care primarily by financing improvements through PED's home rehab finance programs. In response to welfare reform, the State has guaranteed fuli funding for welfaze-to-work child care, and the Ramsey Counry Community Partnership for Welfare Reform, with a grant from the McKnight Foundation, is developing a three-pronged strategy for delivering on this guarantee. The first strategy is to develop the capacity of existing child-caze providers to provide more child care and evening child care (the area where our e�sting prograans will be most effective). The second strategy is to streamline the reimbursement process so that providers can get paid more quickly (not an area where we are involved). And the third strategy is to develop a network of neighbarhood-based child-caze providers to provide them with information and support (an area where we will probably be involved as part of the neighborhood-based Work Resource Hubs that aze being developed). s� Transportation -- The State has provided Ramsey County with funding (estimated at $640,000 for two yeazs) for welfare-to-work transportation. A task force of the Ramsey County Community Partnership for Welfare Reform has developed a process for soliciting and awarding welfare-to-work transportation grants by the end of this year. The Ciry has been involved through staff attending task force meetings and by encouraging the Saint Paul Red Cross, probably the lazgest non-profit transportation provider in the Twin Cities, to submit a grant application. � Cooperation with other governmental entifies -- Duluth and Minneapolis haue passed Living Wage Resolutions within the past yeaz. The City of Vadnais Heights has insfituted a policy that a criteria far assistance given through TIF financing will be the ability of the business to provide "quality jobs." PED staff has also talked with city staff in Chicago and Los Angeles and at the National League of Cities about living wage proposals. � Responsible labor relations -- This is not PED's azea of speciality. However, where there are good labor relations in a company, it usually translates into a better project. That situation is considered a plus when a company applies for public assistance. 9� � t a.y �— Eghibit A City/I�2A Living Wage Jobs Policy Administrative Guidelines Implementation Highliglits - Short Term (See Living Wage Jobs Task Force Policy Recommandations attached) PED wi11 create a facdinformation sheet regarding the Living Wage Jobs Policy and PED account officers will provide businesses that are seeking public financing with these requirements. 2. Job creation goals will be defined for each project (in conjunction with state corporate welfare legislation) and will become part of the contracUloan agreement for each project. 60% of new hires will be required to be Saint Paul residents. 3. Any business receiving pubiic fmancing assistance from the CityBRA for the purpose of economic development in which jobs are created or retained, will be required to remit a copy of its Quarterly Wage Detail Report on an annual basis as a function of servicinglmonitoring by PED account officers. The State requires businesses to file this report following each calendu quarter to report unemployment insurance. The Quarterly Wage Detail Report consists of an employee roster, weeks worked and wages earned during the quarter. Currently, I3RA uses this format to verify employment levels and satisfy reporting requirements for the Strategic Investment Fund loan program. In addition to a copy of the report, businesses must provide an affida�it certifying any new hires and whether they reside in the city of Saint Paul. 4. The Public Pwpose form, adopted by Council, with addition of a check-off to report businesses subject to the Living Wage Jobs Policy (as defined by City Council Resolution adopted U2J97), will be used as a controi mechanism for monitoring and reporting. See attached draft. Monitoring will be done by PED account officers and reported by compliance staff to City Council annually on April 1(in conjunction with report requirements for corporate welfaze). 5. Any business unable to pay the living wage must provide a detailed explanation to PED, which, upon review, may tecommend to the City CounciUHRA a waiver to ttris requirement. This waiver may be granted by resolution. Businesses requesring waivers may choose to request a waiver upon initial applicafion review, at time of HRA/Council approval, ar any time after receiving financing if the business finds it is unable to meet established requirements. 6. Language will be added to contracdloan agreement documents for businesses subject to the Living Wage Jobs Policy to provide that failure to comply will result in a default. Options to remedy (sanctions) the default include: A. Accelerate loan (demand note) �'� '� a ' y � B. Increase interest rate to mazket rate PED is prepared to nnplement the Laving Wage 7obs Policy by Mazch 15, 1997, for business that have made inirial contact about PED programs and support after January 2, 1997. PED will identify those businesses as we seek approval from the I�Rt-1 Boazd. DRAFT Impiementation Highlights - Outstanding Long Term Issues (See Livina Wage 3obs Task Force Policy Recommendations attached) More fully develop a process to advertise jobs created to the entire communiry includ'uag low-income people through community-sponsored arganizafions or job linkage progra.tns. Utilization of the NeighborLink Enterprise Community Project will be used as a focus point for the advertising of all new jobs that are created via city economac development projects. 8. More fully define and develop a process to focus job creation and retanfion at businesses which provide living wage jobs to its employees by giving priority over businesses which have not traditionally paid living wages. More cleazly define "tesponsible labor relafions" and preferential status for assistance to businesses that engage in responsible labor relations. 10. The City of Saint Paul Intergovernmental Relations staff will work with the Metropolitan Council and other appropriate state and regional agencies and the legislature to promote standazds consistent with these guidelines for job creation and retenfion assistance by public development agencies throughout the region. 11. Trained and work-ready empioyees and facilitation of access to child care and public transportation should be addressed by building on the existing system and within the development of a comprehensive job readiness program. A proposal will be developed by PED's Workfarce Development Division. PED will draft a proposal addressing implementation of these outstanding long term issues of the Living Wage Jobs Policy by June 10, 1997. EXI�BIT B CITY OF SAINT PAUL LIVING WAGE REGULATIONS �� -1 a�t �- On January 2, 1497 City Council passed Resolution 46-1512 establishing a Living Wage Policy for any Economic Development project receiving over $100,000 (cumulative in any one fiscal year) in City assistance in which jobs are created or retained. City Assistance was broadly defined as loans, bonds, grants,and Citytax incentives. The Resolu6on excluded from these requirements the following: 1. Conduit bonds. 2. Small businesses as defined in MN Statute 645.445. 3. Intermediaries, such as a community development corporation or community bank, which serves as a pass-through agency for the granting of assistance. 4. Business in its first year of existence. {However, regulation will go into effect with the second year of existence. 5. Redevelopment projects whose only public assistance is site remediation, investigation, site assembly_ REQUIREMENTS: 1. Living wage is defined as ll 0% of the Federal poveriy guidelines far a family of four ($8.49 for 199?). If the business provides employer-paid basic health insurance coverage, living wage is defined as 100% of the of the Federal poveriy guidelines for a family of four ($7.72 for 1997). 2. Any business unable to pay the living wage must provide a detailed explanafion to PED, which, upon review, may recommend to the City CounciUHRA a waiver to this requirement. This waiver may be granted by resolution. Businesses requesting waivers may choose to request a waiver upon initial application review, at time of HRA/Council approval, or any time after receiving financing if the business finds it is unable to meet established requirements. 3. Job creation goals will be defined for each project (in conjunction with state corporate welfare legislation) and will become part of the contract/loan agreement for each project. 60% of new hires will be required to be Saint Paul residents. 4. Language will be added to contract/loan agreement documents for businesses subject to the Living Wage 7obs Policy to provide that failure to comply wilt resutt in a default. Options to remedy (sanctions) the default include: A. Accelerate loan (demand note) B. Increase interest rate to market rate 5. Any business receiving pubiic financing assistance will be required to remit a copy of its Quarterly Wage Detail Report on an annual basis as a function of servicinglmonitoring by PED account officers. The State requires businesses to file this report following each calendar quarter to report unemplopment insurance. The Quarterly Wage Detait Report consists of an employee roster, weeks worked and wages eamed during the quarter. In addition to a copy of the report, businesses must provide an affidavit certifying any new hires and whether they reside in the city of SainY Paul. amcvwre sePremner i99� q�-1a.�� EXHIBIT B continued Account Officer Guide Living Wage/Corporate Welfare Process Assistance includes loans, grants, City tax incenrives, bonds (except conduit bonds are e%cluded). Step 1. Apply this matria to the project to determine if eitherlboth Corporate Welfare and Living Wage regulations apply: Criteria Corporate Welfare Living Wage applies applies Assistance is for economic devel'mt in �Y XXX which jobs are created or retained Assistance is more than $25,000 but less X�'Y DOES NOT APPLY than $100,00Q in one fiscal year Assistance is more than $100,000 XXX XXX [cumulat3ve in any one fiscal year] Assistance is for site remedia6on, DOES NOT APPLY DOES NOT APPLY investigation & assembly Assistance is for small business as defined � DOES NOT APPLY by MN Statute 645.445, e.g. 20 or fewer employees; Less than $1,000,000 gross revenues in preceding fiscai year; ar Less than $2,500,000 if a technical or pro- fessional service; Is not an�liate or subsidiary of a business dominant in its field of operation. Recipient serves as a pass-through agency DOES NOT APPLY DOES NOT APPLY for assistance such as CDC, bank, etc. Recipient is a business in its first year of XXX DOES NOT APPLY for existence first yeaz but does apply beginning with second year Recipient is a not-for-profit DOES NOT APPLY �'YX GO TO STEP 2 -i q�.��� �- Step 2. Compliance and Reporting Requirements Work with the recipient of the public financing to detennine: A. what are realistic job goals and wages for this entity to meet? • Sanc6ons will apply if goals are not met within two yeazs of receiving public assistance. • These requirements will be part of the contract/loan agreement. • 60% of new hires must be St Paul residents. B.. Fill out a Public Purpose Sumuiary. • Check if Corporate Welfaze andlor Living Wage applies. • Indicate Job Creation and Wage goals as well as number of jobs retained. C. Include in the HRA/Credit Committee report the average wage the business currently pays its employees D. If assistance is approved by the IIRAICredit Committee, fill out a Corporate Welfare form if it applies and forward to Ann Copeland. E. Be sure proper language regarding Corporate Welfaze/Living Wage compliance and reporting is included in the financing agreement. F. Collect an initial Quarterly Wage Detail Report from the business. G. Annually, as part of the loan/grant servicing, coilect a Quarterly Wage Detail Report and a letter certifying iffhow job creation and wage goals have been met. Council File # {� �,Zy�+ Green Sheet # �s0 �oZ,Q RESOLUTION CITY OF 2 0 6 7 Presented sy Referred To Committee: Date RESOLUTION ACKNOWLEDGING RECEIPT OF AND ACCEPTING A REPORT FROM THE DEPARTMENT OF PLANNING AND ECONONIIC DEVELOPMENT ON THE IMPLEMENTATION OF THE LIVING WAGE POLICY a� WHEREAS, on Januaty 2, 1997, the City Council passed resolufion 96-1512 Accepting and Adopting the Policy Recommendations ofthe Joint Saint Paul-Minneapolis Living Wage Policy Task Force; and 8 WHEREAS, the Department of Plauning and Economic Development was designated to develop 9 administrative guidelines for the implementation of ttus policy; and 10 11 WHEREAS, the Department of Planning and Economic Development returned to the Council on 12 Februaz•y 5, 1997 with both Short-term Administrative Guidelines that could be implemented by March I S 13 and Long-Term Guidelines that would require more work prior to implementation; and 14 15 WHEREAS, City Council reviewed and accepted those Guidelines; and 16 17 WHEREAS, the Deparlment of Planning and Economic Development was also designated to monitor 18 and report on compliance with these Administrative Guidelines now, therefore be it 19 � � 20 RESOLVED, that the Saint Paul City Council acknowledges receipt of and accepts this report from the 21 Department of Planning and Economic Development on the implementation to date of the Living Wage 22 policy for the City of Saint Pau1. ?3 ?4 Requested by Department of: By: Form Approved by City Attorney Adoption Certified by Council Secretary By: Approved by Mayor: Date ! c�l ( i. �_jc� �c //1 Hy: // PAUL, MINNESOTA By: Apprwed by Mayor £or Submission to Council By: GREEN SHEET Councilmember �$S�GN NUYBER f-0R TOTAL # OF SIGNATURE PAGES Acknowledging receipt of & accepting a report from the Department of Planning and Economic Development on the implementation of the living wage policy. vun� ��n approve �a� w rce�ecc � PLANNING COMMISSION CIB CAMMITTEE CiVIL SERVICE COMMISSfON u��� u��- ❑ pfYAT�ORNkY ❑ CRYCLiMIt ❑ RNMqRliF0.VICEfOYI ❑ RMNCMLfE0.Yf�CCT6 ❑wvort�on�smr�nn ❑ (CUP ALL LOCATIONS FOR SIGNATURE) Hastl»a PeBOM�m eder waketl urMer a contract for tltis department4 VES NO Has ihis PeraoNfirtn avM Eeen a citY emPbYee9 YES NO Dcesihie Personlfi�m 0� a slfili not nqrtwlryP� M' �N �urrerrt cilY �PbY� YES td0 IsttHapeisot�nnatargetedvendoYt . YES NO �t? -��.ya- r,o 60728 )TAL AMOUNT OF TRANSAC710N S COST/REYEfiUE BlfD6ETED (CI0.CLE ONE� �L�:L•: N1DIN6 SOURCE ACT1VIiY fiUMBER ANCl4L INFOIiM42iON (DlPWN) 9� - f�.y�- REPORT TO SAINT PAUL CITY COUNCIL ON IMPLEMENTATION OF LIVING WAGE RESOLUTION 96-1512 On January 2, 1497 Ciry Councii passed Resolution 46-1512 establishing a Living Wage Policy for any Economic Development project receiving over $100,000 (cumulative in any one fiscal year) in City assistance in which jobs aze created or retained. City Assistance was broadly defined as loans, bonds, grants, and City t� incentives. The Department of Planning and Economic Development was charged with implementing this resolution and reporting to City Council on the outcomes. In March, 1997 PED staff presented the Administrative Guidelines for implementation of the program. These were divided into Short Term (immediately doable) and Long Term (requiring more coordination and planning). [Copy is attached as Ea�hibit A] These Guidelines were accepted by City Council. PED staff was to return to City Council with the Long Term Guidelines in the suimner. SAORT TERM IMPLEMENTATION � Training session were held for PED Account Officers and subgrantees in March on the Living Wage requirements and reporting. �> Inforniation on Living Wage requirements is included in each Compliance meeting that is held for subgrantees receiving STAR loan or grant money. � Information sheets were prepazed for PED Account Officers to have as a ready reference when they are working with businesses applying for City funding. [E�chibit B] � PED staff is also prepazing a brochure that can be given to businesses to explain the Living Wage requirements. � Account Officers were informed when the Federal Poverty Guidelines were updated with 1997 figures. Hourly wages required without health benefits aze now $8.49. Hourly wages required if health benefits are given employees are $7.72. Staff has located the information on the Internet so that updating of required hourly wages can be done as soon as the Federal Poverry Guidelines are posted by the U.S. Department of Health & Human Services. � Schedule of businesses subject to living wage requirements is shown in the table on the next page. Projects aze added to the table when they go through PED Credit Committee to finalize the financing. a� � 1 zy � LIViNG WAGE REPORT TO SAfNT PAUL C1TY COUNCIL Name i$ Amount � Date of Job Creafion Anticipated Hourly Wages � I Assistance FT PT Inc 1997 $16.85 261 E Sth not not School � $7�� � not closed 10(YR 1 Mazket � $740,220.00 nat close 55 $6-15 ;s Familv Care Ctr*** I $100_000.00� not close 0 OT LONG TERM IMPLEMENTATION � Job Linkage --The City has become an active partner in the Ramsey County Community Parmership for Welfare Reform, which is working to develop a centralized system to allow employers to list their job openings . PED staff are warking with the Partnership because it has broadened its approach from welfare-to-work, to the more important economic development challenge of linking job seekers with jobs. The Partnership has also succeeded in engaging the business community over the issue of workforce development. Short-term, a single telephone number will be up and rutuiing this fall at the Saint Paul Workforce Center, using the NeighborLink electronic job listing system. Long- term, efforts aze underway to create a Community Employment System with two components: a centralized workforce center for employers, and decentralized Work Resource Hubs for job seekers. Link'no the two will be integrated electronic information systems and staff skilled in serving business and job seeker customers. The first couple of Work Resource Hubs aze expected to open this January. � Businesses with Living Wage Jobs -- People take the work readiness skills they learn at entry Ievel jobs and advance to better jobs. For low-income residents seeking to enter the work force, finding a job with a good "job ladder" -- one with room to advance -- is better than starting at a living wage in a job with no oppornuiity for advancement. In Saint Paul, two globaily-competitive industry clusters stand out both for the number of entry- level jobs they create, and the number of jobs that exist for those who want to develop their sldlls and move up the ladder. 9�-��,y� Between them, the printing and health caze industries have hundreds of emry level jobs available, and many other jobs with good cazeer ladders. The printing industry, Uuough the Printing Industry ofMinnesota trade association, has developed its own job traiuing pmgraru and is reaching out to find and develop qualified candidates from non-traditional populations. The Health Care industry, through the Hospitat and Health Care Partnership, is exploring the creation of a pilot program with the City and the Port Authority to develop a customized training program not only for the 500 entry-level jobs they estimate aze available today, but trainiaig programs that will move existing entry- level workers up the job ladder. � Child Care — The City has been involved in increasing the supply of child care primarily by financing improvements through PED's home rehab finance programs. In response to welfare reform, the State has guaranteed fuli funding for welfaze-to-work child care, and the Ramsey Counry Community Partnership for Welfare Reform, with a grant from the McKnight Foundation, is developing a three-pronged strategy for delivering on this guarantee. The first strategy is to develop the capacity of existing child-caze providers to provide more child care and evening child care (the area where our e�sting prograans will be most effective). The second strategy is to streamline the reimbursement process so that providers can get paid more quickly (not an area where we are involved). And the third strategy is to develop a network of neighbarhood-based child-caze providers to provide them with information and support (an area where we will probably be involved as part of the neighborhood-based Work Resource Hubs that aze being developed). s� Transportation -- The State has provided Ramsey County with funding (estimated at $640,000 for two yeazs) for welfare-to-work transportation. A task force of the Ramsey County Community Partnership for Welfare Reform has developed a process for soliciting and awarding welfare-to-work transportation grants by the end of this year. The Ciry has been involved through staff attending task force meetings and by encouraging the Saint Paul Red Cross, probably the lazgest non-profit transportation provider in the Twin Cities, to submit a grant application. � Cooperation with other governmental entifies -- Duluth and Minneapolis haue passed Living Wage Resolutions within the past yeaz. The City of Vadnais Heights has insfituted a policy that a criteria far assistance given through TIF financing will be the ability of the business to provide "quality jobs." PED staff has also talked with city staff in Chicago and Los Angeles and at the National League of Cities about living wage proposals. � Responsible labor relations -- This is not PED's azea of speciality. However, where there are good labor relations in a company, it usually translates into a better project. That situation is considered a plus when a company applies for public assistance. 9� � t a.y �— Eghibit A City/I�2A Living Wage Jobs Policy Administrative Guidelines Implementation Highliglits - Short Term (See Living Wage Jobs Task Force Policy Recommandations attached) PED wi11 create a facdinformation sheet regarding the Living Wage Jobs Policy and PED account officers will provide businesses that are seeking public financing with these requirements. 2. Job creation goals will be defined for each project (in conjunction with state corporate welfare legislation) and will become part of the contracUloan agreement for each project. 60% of new hires will be required to be Saint Paul residents. 3. Any business receiving pubiic fmancing assistance from the CityBRA for the purpose of economic development in which jobs are created or retained, will be required to remit a copy of its Quarterly Wage Detail Report on an annual basis as a function of servicinglmonitoring by PED account officers. The State requires businesses to file this report following each calendu quarter to report unemployment insurance. The Quarterly Wage Detail Report consists of an employee roster, weeks worked and wages earned during the quarter. Currently, I3RA uses this format to verify employment levels and satisfy reporting requirements for the Strategic Investment Fund loan program. In addition to a copy of the report, businesses must provide an affida�it certifying any new hires and whether they reside in the city of Saint Paul. 4. The Public Pwpose form, adopted by Council, with addition of a check-off to report businesses subject to the Living Wage Jobs Policy (as defined by City Council Resolution adopted U2J97), will be used as a controi mechanism for monitoring and reporting. See attached draft. Monitoring will be done by PED account officers and reported by compliance staff to City Council annually on April 1(in conjunction with report requirements for corporate welfaze). 5. Any business unable to pay the living wage must provide a detailed explanation to PED, which, upon review, may tecommend to the City CounciUHRA a waiver to ttris requirement. This waiver may be granted by resolution. Businesses requesring waivers may choose to request a waiver upon initial applicafion review, at time of HRA/Council approval, ar any time after receiving financing if the business finds it is unable to meet established requirements. 6. Language will be added to contracdloan agreement documents for businesses subject to the Living Wage Jobs Policy to provide that failure to comply will result in a default. Options to remedy (sanctions) the default include: A. Accelerate loan (demand note) �'� '� a ' y � B. Increase interest rate to mazket rate PED is prepared to nnplement the Laving Wage 7obs Policy by Mazch 15, 1997, for business that have made inirial contact about PED programs and support after January 2, 1997. PED will identify those businesses as we seek approval from the I�Rt-1 Boazd. DRAFT Impiementation Highlights - Outstanding Long Term Issues (See Livina Wage 3obs Task Force Policy Recommendations attached) More fully develop a process to advertise jobs created to the entire communiry includ'uag low-income people through community-sponsored arganizafions or job linkage progra.tns. Utilization of the NeighborLink Enterprise Community Project will be used as a focus point for the advertising of all new jobs that are created via city economac development projects. 8. More fully define and develop a process to focus job creation and retanfion at businesses which provide living wage jobs to its employees by giving priority over businesses which have not traditionally paid living wages. More cleazly define "tesponsible labor relafions" and preferential status for assistance to businesses that engage in responsible labor relations. 10. The City of Saint Paul Intergovernmental Relations staff will work with the Metropolitan Council and other appropriate state and regional agencies and the legislature to promote standazds consistent with these guidelines for job creation and retenfion assistance by public development agencies throughout the region. 11. Trained and work-ready empioyees and facilitation of access to child care and public transportation should be addressed by building on the existing system and within the development of a comprehensive job readiness program. A proposal will be developed by PED's Workfarce Development Division. PED will draft a proposal addressing implementation of these outstanding long term issues of the Living Wage Jobs Policy by June 10, 1997. EXI�BIT B CITY OF SAINT PAUL LIVING WAGE REGULATIONS �� -1 a�t �- On January 2, 1497 City Council passed Resolution 46-1512 establishing a Living Wage Policy for any Economic Development project receiving over $100,000 (cumulative in any one fiscal year) in City assistance in which jobs are created or retained. City Assistance was broadly defined as loans, bonds, grants,and Citytax incentives. The Resolu6on excluded from these requirements the following: 1. Conduit bonds. 2. Small businesses as defined in MN Statute 645.445. 3. Intermediaries, such as a community development corporation or community bank, which serves as a pass-through agency for the granting of assistance. 4. Business in its first year of existence. {However, regulation will go into effect with the second year of existence. 5. Redevelopment projects whose only public assistance is site remediation, investigation, site assembly_ REQUIREMENTS: 1. Living wage is defined as ll 0% of the Federal poveriy guidelines far a family of four ($8.49 for 199?). If the business provides employer-paid basic health insurance coverage, living wage is defined as 100% of the of the Federal poveriy guidelines for a family of four ($7.72 for 1997). 2. Any business unable to pay the living wage must provide a detailed explanafion to PED, which, upon review, may recommend to the City CounciUHRA a waiver to this requirement. This waiver may be granted by resolution. Businesses requesting waivers may choose to request a waiver upon initial application review, at time of HRA/Council approval, or any time after receiving financing if the business finds it is unable to meet established requirements. 3. Job creation goals will be defined for each project (in conjunction with state corporate welfare legislation) and will become part of the contract/loan agreement for each project. 60% of new hires will be required to be Saint Paul residents. 4. Language will be added to contract/loan agreement documents for businesses subject to the Living Wage 7obs Policy to provide that failure to comply wilt resutt in a default. Options to remedy (sanctions) the default include: A. Accelerate loan (demand note) B. Increase interest rate to market rate 5. Any business receiving pubiic financing assistance will be required to remit a copy of its Quarterly Wage Detail Report on an annual basis as a function of servicinglmonitoring by PED account officers. The State requires businesses to file this report following each calendar quarter to report unemplopment insurance. The Quarterly Wage Detait Report consists of an employee roster, weeks worked and wages eamed during the quarter. In addition to a copy of the report, businesses must provide an affidavit certifying any new hires and whether they reside in the city of SainY Paul. amcvwre sePremner i99� q�-1a.�� EXHIBIT B continued Account Officer Guide Living Wage/Corporate Welfare Process Assistance includes loans, grants, City tax incenrives, bonds (except conduit bonds are e%cluded). Step 1. Apply this matria to the project to determine if eitherlboth Corporate Welfare and Living Wage regulations apply: Criteria Corporate Welfare Living Wage applies applies Assistance is for economic devel'mt in �Y XXX which jobs are created or retained Assistance is more than $25,000 but less X�'Y DOES NOT APPLY than $100,00Q in one fiscal year Assistance is more than $100,000 XXX XXX [cumulat3ve in any one fiscal year] Assistance is for site remedia6on, DOES NOT APPLY DOES NOT APPLY investigation & assembly Assistance is for small business as defined � DOES NOT APPLY by MN Statute 645.445, e.g. 20 or fewer employees; Less than $1,000,000 gross revenues in preceding fiscai year; ar Less than $2,500,000 if a technical or pro- fessional service; Is not an�liate or subsidiary of a business dominant in its field of operation. Recipient serves as a pass-through agency DOES NOT APPLY DOES NOT APPLY for assistance such as CDC, bank, etc. Recipient is a business in its first year of XXX DOES NOT APPLY for existence first yeaz but does apply beginning with second year Recipient is a not-for-profit DOES NOT APPLY �'YX GO TO STEP 2 -i q�.��� �- Step 2. Compliance and Reporting Requirements Work with the recipient of the public financing to detennine: A. what are realistic job goals and wages for this entity to meet? • Sanc6ons will apply if goals are not met within two yeazs of receiving public assistance. • These requirements will be part of the contract/loan agreement. • 60% of new hires must be St Paul residents. B.. Fill out a Public Purpose Sumuiary. • Check if Corporate Welfaze andlor Living Wage applies. • Indicate Job Creation and Wage goals as well as number of jobs retained. C. Include in the HRA/Credit Committee report the average wage the business currently pays its employees D. If assistance is approved by the IIRAICredit Committee, fill out a Corporate Welfare form if it applies and forward to Ann Copeland. E. Be sure proper language regarding Corporate Welfaze/Living Wage compliance and reporting is included in the financing agreement. F. Collect an initial Quarterly Wage Detail Report from the business. G. Annually, as part of the loan/grant servicing, coilect a Quarterly Wage Detail Report and a letter certifying iffhow job creation and wage goals have been met.