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90-230 j � , . . x` l Y ��� �` J _�' . 'i o � I � �"�� . . coun�l File # D-a3 O L �� �Q Ordinance # � �/7� 3 � Green sheet # �,�,3 9 ORDINANCE CIT'Y OF SAINT PAUL, MINNESOTA � � � `' �, ���' ,,t,,.�,-,. �,-�� . Presented By Referred Committee: Date An ordinance ame�ding Chapter 81 of the Saint Paul Administrative Code pertaining to purchasing from set aside busihesses. The Council of the City of Saint Paul Does Ordain: Section 1 That Chapter 81 of the Saint Paul Administrative Code is hereby amended in its entirety to read as follows: Chapter 81. Targeted Vendor Development Program Section 81.01. Declaration of Policy. The council of the City of Saint Paul, pursuant to the authority granted it by virtue of the Uniform Municipal Contracting Law does hereby support the policy of enhancing the viability of the various commercial entities through temporary aid and support to those persons and entities identified herein by facilitating their participation as vendors to the City in its purchase of goods �nd services. Sec. 81.02. Statem�nt of Purpose and Findi.ngs. The City of Saint Paul has undertaken an extensive study of the needs of certain groups of businesses and has evaluated past City efforts to support them. It is the finding of the City that, a) Having a strong �nd varied community of persons and businesses enhances the City's fiscal strength, augments employmjent opportunities for citizens, and fosters the overall health of the Saint Paul community. b) There is a public interest in using public resources to help certain vendors who have been targeted by the City to become viable actors in the local marketplace. These targeted vendors include those who are newly emerging� small, and economically disadvantaged. c) The City has a detnonstrated and continuing commitment to providing equal access to City programs for individuals and businesses. [Draft with amendments as of March 28, 1990] op. � � � , , . ��lo a3 0 ��� a��li¢purpose to be served in procuring goods and services from a wide range of vendors 3 and that the pubh� procurement process is one appropriate mechanism that can be used to support those vendors who have been targeted by the City as candidates for assistance. e) The City has a l�ong and successful track record of supporting certain targeted vendors through the public procuremenrt process, however additional vendors need assistance and there are needs that remain unmet. (� There is a public interest to be served by such programs as this in that there is a promotion of businesses owned by female, minority or handicapped businesses that have historically been under- represented in city'�purchasing. Sec. 81.03. Defini�ions. For purposes of this chapter, the following words and phrases shall have the meanings set forth in this section, except where the context clearly indicates that a different meaning is intended. Economically disa�vantaged small business means a business entity based in Minnesota that has been in existence for o�e year that has been deprived of the opportunity to develop and maintain a competitive positiot� in the economy because of economic conditions and that (a) is not a mature � business; (b) is not�an affiliate or subsidiary of a business dominant in its field of operation; c) is not a non-stocking retailer or wholesaler, a manufacturer's representative, a franchise or a business where the owner is ownerIor part owner of another similar business; and (d) is not a business which grossed more than $1,0OO,ObO in the previous fiscal year or had employees who worked more than a total of 45,000 employee hc�urs in the previous fiscal year. A business is economically disadvantaged if: (1) the owner lack adequate external support necessary to operate a competitive business enterprise as evidenced by the�diminished ability to secure long-term or working capital financing, equipment, raw material, or suppli�r trade credit; bonding and insurance; or if the business has not captured a proportionate share� of the market for its goods or services; or (2) the business fil�d its first annual federal and state income t� returns which reflected its operation as a business withi}n the preceding �ive years or will file its first annual return which reflects its operation as a business within the next 12 months. Eligible goods and �ervices means those items annually determined by the purchasing division to be available from mult�ple sources and not governed by any special requirements that dictate the source or manner in which' they are procured. Goods and servicesl means materials, supplies, equipment, trade, technical, or professional services, construction and dejvelopment projects. Mature business mgans one that has attained the average or close to average performance for a company of its age �nd size as compared with state and national norms, has a demonstrated record of receiving contracts, pr has a demonstrated record of receiving working or long term capital, supplier credit, bonds or ins�rance. Targeted vendor me�ns an economically disadvantaged small business. A targeted vendor may include, but not be limited to� female,minority or handicapped owned businesses, but such businesses must meet all other definitions I set forth in section 81.03. i [Draft with amendments as of March 28, 1990] 2 ORIGINAL � � � � � � �'"�°a3° Sec. 81.04. Goals �or Participation ' (a) The overall go��l of the program shall be to provide temporary support and technical assistance to targeted vendors �o they may achieve a level of maturity and become viable actors in the local marketplace without becoming dependent upon the program for their long term success. (b) It is the goal qf the City to award appro�mately 25% of the funds appropriated each fiscal year for the purchase of eligible goods and services to registered targeted vendors. (c) The purchasinjg division shall establish bid specifications and purchasing decisions necessary to accomplish these ta.rgeted vendor goals. Sec. 81.05. Prograq� Name, Scope, and Administration (a) The program'of providing temporary support and technical assistance to targeted vendors shall be known hereinaf�er as the Targeted Vendor Development Program. (b) The purcha�sing division shall have the responsibility for the ongoing development and administration of the Program. The Division shall also manage any other similar vendor programs for Ramsey County an�i other users of the purchasing services as may be reasonably agreed upon among the parties. (c) The purchasing� division shall annually undertake a range of activities to meet the needs of those vendors registered i� the Program. These activities shall include but not be limited to consulting with targeted vendors, providing information about purchasing procedures, identifying bidding opportunities and targeted vendo�s who may qualify to participate, and consulting with City departments on future projects where targe�ted vendors may be used. The purchasing division shall also meet at least quarterly with representatives of other business assistance programs operated by the city to coordinate activities and shall refer targ�ted vendors to those programs for information and technical assistance. (d) After initial r�gistration in the program, the purchasing division may, in consultation with a targeted vendor, fonmulate a vendor development plan to serve as a guide for the vendor in moving toward achieving m�ture business status. Performance against the plan may be used by the purchasing division in evaluatirig whether the targeted vendor should be permitted to continue in the program. (e) The purchasing�,division shall take affirmative steps to disseminate information about the program to potential applica�lts, including female, minority or handicapped owned economically disadvantaged small businesses, and use recruiting methods that encourage a wide range of eligible vendors to participate in the priogram. (f� The purchasing division is authorized to develop and administer a performance bond fund program to provide performa�ce bonds for qualified targeted vendors as part of the overall Program. Funds for this bond program �ay be received through provisions in City subsidized development projects, fees, or through grants arid donations from private, governmental, and non-profit sources. Sec. 81.06. Applicat�on to Qualify as a Targeted Vendor. Vendors seeking to do business with the City as targeted vendors I shall notify the purchasing division of their intent. Applications establishing eligibility for the pr gram shall be reviewed and an applicant interview conducted by the purchasing division prior to bec�ming eligible to submit bids as a targeted vendor. [Draft with; amendments as of March 28, 1990] 3 0 R I G�I N A L , . � , �-�o-a 3� /77�3 Sec. 81.07. Eligibilliity. � ' (a) Applicants me�ting all requirements of a targeted vendor may be registered in the Program for one (1) year. Program participants may be allowed to renew their registrations annually. (b) Applicants who are certified as economically disadvantaged small businesses in other jurisdictions may paxticipate in the targeted vendor development program without proceeding through the certification proce5s if they can demonstrate that the program guidelines under which they were certified are materially similar to those used by the Purchasing Division. Proof to that effect from the certifying agency wfll be required prior to acceptance. The Purchasing Division has the right to screen any applicant through its standard procedures regardless of certification status in other jurisdictions. (c) The purchasing division may refuse to approve an original or renewal application for participation as a targeted vendar upon the grounds of misrepresentation of material facts, fraud, deceit or bad faith. The purchasing division may also withdraw its acceptance of any application at any time on the basis of ineligibility, a ahange in the composition of a targeted vendor which does not conform to the definitions herein o�r has achieved mature business status. Any rejection or withdrawal may be appealed to the Director of Finance and Management Services, who shall conduct an investigation and make a final deternunationi about the eligibility of the vendor. (d) The purchasin$ division shall review each program participant's record at the time of renewal and may refuse renewal (1) upon a finding that the participant has matured sufficiently so that ongoing technical support is no longer needed, (2) eligibility was obtained by misrepresentation of material facts, by fraud, by deceit �or by bad faith, (3) non-performance on a City contract, or by lack of evidence of good faith efforts to advance the business to mature business status. The purchasing division may use number of City conXracts awarded, and participation in contracts from other jurisdictions as a basis for granting renewal in the Program. (e) In the event tk�at a business is not eligible for registration into the Program but is a bona fide female, minority, o� handicapped owned business as defined by federal law, that business may be registered to partidipate in City projects involving federal funds where the sponsoring federal agency has requirements fo�women, minority, or handicapped business participation. The purchasing division shall have the authmrity to gather such information from applicants as may be necessary to determine the nature and ext�nt of business ownership to comply with the applicable federal statutes, rules, or regulations. When it is determined that an applicant does not meet the requirements of the Program but qualifies for participation in federal projects, the applicant shall be given a "limited registration" in the Program. (� All vendors registered as a "set-aside business" or "small business" under the provisions of the previous chapter 81, at the time of the effective date of this ordinance, shall be grand-fathered in the Program for a periad of up to 12 months from the effective date and may apply for renewal provided that the vendor me�ts the eligibility requirements of this chapter. Sec. 81.08. Method of Award. (a) In accordance with the provisions of Minnesota Statutes 471.345 the purchasing division may, whenever it deems �t feasible, solicit bids that require the lowest responsible bidder to subcontract a portion or percentage of work to a vendor registered in the Program or may solicit bids from among only vendors registe�ed with the Targeted Vendor Program. (b) When deemed necessary to achieve the goals for participation, as provided for in section 81.04, the purchasing division may award a contract to a registered targeted vendor provided that the price [Draft with amendments as of March 28, 1990] q �������, ' . . �-���30 y 5% the purchasing division's estimated price for the goods and services if they were purchased on the mpen market and not under the provisions of this program. �7�,Z 3 Sec. 81.09. Monitoring and Reporting. (a) The purchasin� division is authorized to verify that the targeted vendors specified for City projects, whether as contracltors or subcontractors, are the vendors performing the work. Such verification may be accomplished by on-site inspections, requesting written information, or such other mechanisms that may be reasonable� (b) Each targeted vendor shall, upon request of the purchasing division, permit access during normal business hours to the business work site, record, and files as needed to determine conformance to targeted vendor pr�gram requirements. (c) The purchasing division shall take steps annually to review the overall performance of the program against the stated goals and shall take steps to modify program activities as necessary to accomplish such goals. As part of the annual review process, the purchasing division shall collect information from Program participar�ts, among others. The Division shall also gather information about the race, gender and physical status of targeted vendors to assist the city in determining whether discrimination has occurred in the pulplic contracting process and to pernut the city to comply with federal participation requirements that #nay apply to city projects. (d) The purchasing division shall annually prepare a report on the overall operation of the program. The report shall include, but not be limited to, information on the types and numbers of businesses certified or recertffied in the program; the number and dollar value of contracts awarded to economically disadvantaged businesses who are small, or owned by women, minorities, or handicapped individuals; the percentage of participation of targeted vendors in city projects, reasons for not using targeted vendors in city projects; outreach and recruiting activities, and an overall assessment of the program. It shall bie transmitted the Mayor and City Council and shall be available for inspection by Program participanits and the general public. Sec. 81.10. Discrimunation In the event that a vendor feels that he or she has been discriminated against in the award of a City contract, the vendor shall have the right to file a grievance with the City Human Rights Department and/or the State Human Rights Department. The procedures to be used shall be those speafied in Chapter 183 of the Saint Paul Legislative Code and Chapter 363 of the Minnesota Statutes. Sec. 81.11. Rules,Rlegulations,and Forms. The director of the department of finance and management services shall promplgate such rules, regulations and forms as may be needed to carry out the duties and responsibilities set forth herein. Sec. 81.12. Advisoty Committee. There is hereby created a Targeted Vendor Advisory Committee consisting of seven members appointed by the Mayor and approved by the City Council. Members shall be selected from c�rrent program participants, persons knowledgeable in the fields of finance, law, small business deve�opment and women and minority business development, and other metropolitan business developme�t programs. The committee shall hold meetings at such times as agreed upon by the members. Th$ committee shall monitor the progress and impact of the program and make recommendations to the Purchasing Division in the certifying and servicing of targeted vendors. Sec. 81.13. Penalty for fraud, misrepresentation. It shall be a misdemeanor for any person to furnish or to provide fraud�lent or false information for the purpose of gaining eligibility to or participation in the targeted venc�or development program, and upon conviction the person shall be subject to the penalties set forth in section 1.05 of this code. [Draft with amendments as of March 28, 1990] $ I ORI � � NAL . . . . �"-�°�33 , ,�7� Section 2 This ordinance shal� take effect and be in force thirty days from and after its passage, approval and publication. Sectiqn 81.08 (b) of the Legislative Code, as amended by this ordinance, shall automatically temu�ate one year after the effective date of this ordinance unless the City Council shall elect to re-ena�Ct this provision prior to that date. � �� Na�,�s Absent Requested by Department of: swi z � n � c ee -� e � i son �= BY� � Adopted by Counci�.: �te ppR 2 4 1990 Fo� � ea city Attorn y Adoption Certifie� by Council Secretary �. , / �'� rav by Ma r for Submission to Appraved by Mayor: Date �PR 2 5 1990 � By; �;��.,/����i B�': [D ft witY� amendments as of March 29, 1990] , l�t�IISHED �1AY - 51990 .,_�. i I /��� . �I � , . 177� ' �� ; • � ��� � � ,���i�i�a�� p . CITY OF SAINT PAUL - a�,g g 19 a� � � OFFICE OF THE CITY COUNCIL ', CITY HALL-7th FLOOR-SAIN�'PAUL,MINNESOTA 55102 ' 612-298-5506 TOM DIMOND COUNCILMEMBER Memvers: Yom Dimond, Chai= Dave Thune, Vice-Chair Paula Maccabee �, Date: March 28, 1990 RECEIVED COMMITTEE �EPORT ���� HOUSING AN� ECONOMIC DEVELOPMENT COMMITTEE CI?Y CLERK � 1. Appr�val of the Minutes of the March 14, 1990, Housing and Economic Deve opment Committee meeting. COMMITTEE RE(�OMMENDED APPROVAL, 3-0 ,� i;c, n c.c: � �,�I`e, ,.��-� . Re ' n 90-230 -- An or�i.nance amending Chapter 81 of St. Paul Admi istrative Code pertaining to purchasing from Set Aside businesses (Laid Over in Committee 3-14-90) . ,, ,�� � n._ ' ��. :_� , c, 42.•E..,�°,_,^ COMMITTEE RE�OMMENDED APPROVAL WITH AMENDMENTS, 3-0 3. Reso]lution 90-222 -- Receiving documents collectively referred to as "Purcthasing Policy Report ��1: An Evaluation of Saint Paul' s Set Aside Prog�'am" and making them an official part of the record of Council delilierations on Chapter 81 (Laid Over in Committee 3-14-90) . COMMITTEE RE401�I�fENDED APPROVAL, 3-0 4. Arun�el Street Vacation. COMMITTEE RE�OMMENDED THAT A RESOLUTION BE DRAFTED TO CONTINUE TEMPORARY VACATION AND HAVE THIS IS�UE BROUGHT BEFORE THE ENTIRE COUNCIL AFTER A ONE-YEAR PERIOD, APPROVED, 3-0 5. Low Income Tax Credit Qualified Allocation Plan for Procedural Manual. COMMITTEE RE OMMENDED TWO WEEK LAYOVER, TO THE APRIL 11, 1990, HOUSING AND ECONOMIC DEVELOPMENT OMMITTEE MEETING, 3-0 6. Guid lines for Vacant Building Program. COMMITTEE RE OMMENDED TWO WEEK LAYOVER, TO THE APRIL 11, 1990, HOUSING AND ECONOMIC DEVELOPMENT OMMITTEE MEETING, 3-0 �,, Chair, Housing and Redevelopment Authority, Committees: Public Works; Housing and Economic Development; Finance. � s 100%Recycleable CONIl�iITTEE REPORT HOUSING AND ECONOMIC DEVELOPMENT MARCH 28, 1990 PAGE TWO 7. North End Partnership URAP -- District 6. COMMITTEE RECOI�tENDED APPROVAL TO HRA BOARD, 3-0 8. Neighborhood TIF, Districts 2, 7, 8 and 15. COMMITTEE RECOMMENDED APPROVAL TO THE HRA BOARD, 3-0 9. Resolution 90-376 -- Establishing a legislative advisory committee to be known as the Task Force on Neighborhood Development Capacity Building. COMMITTEE RECOMMENDED APPROVAL WITH AMENDMENTS, 3-0 2 WHITE - CITV CIERK I� ti1NK - FINANCE � COIl/1C11 � CANARY -DEPARTMENT �. G I TY OF SA I NT PAUL ��-07�.� BLUE -MAVOR � F1I@ NO. 1 • � �O rdindnce Ordinance N�. - Presented �� � Ref o I •—t� r Committee: Date � —�� ' 9� Out of mmitt le By Date �4n ordinance amending Chapter 81 of the Saint aul Administrative Code pertaining to p rchasing from set aside businesses. The Counci '�1 o the City of Saint Paul Does Ordain: � Section 1 That IChapter�$1 of the Saint Paul Administrative Gode is hereby amerded in it entirety to read as follows; C�apter 81 . T geted Vendor Development Program , Secti n 81 .01 . Decl ation of Policy. The council of � the C ty of Sai nt Paul , ursuant to the authori ty granted it by virtue of the Un 'form Municipal Contracting Law , does ereby support the p licy of enhancing the viability of th various commercial ntities through temporary aid and �upport to those pers ns and entities identified " � hereih by facilitating their articipation as vendors to the C!ity in its purchase of ods and services. Sec. 81 . 02 . Statement of Purpo e and Findings. The City - of Sa'int Paul has undertaken an extensive study of the needs of certain groups of busine ses a�d has evaluated past i ty efforts to support t!-�em. It i s the f i ndi ng of the C 'ty that, ` � I �� i �� , COUNCIL MEMBERS �. Yeas Nays I Requested by Depattment of: Dimond ' �� � [n Favor Goswitz � x�n'°e° ' �Z3 D � scne;be� A gai ns t BY Sonnen Wilson � � � Ado ted n il: Date Form Appr ed;by ity ney p by Cou c � : � /,-. Certified Passed by Counci Secretary 1 BY �' , � , � BY ; �. .% � Approved by Mayor: Date� Appr�ve�`by ,ayor for ubm;ssion to Council By i BY� ✓ � i . ���-a3d . . . . �; , a) Having a strong and varied community of persons and businesses enhances the City ' s fiscal strength, augm nts emp�loyment opqortunities for citizens, and fost rs the overall heaith of the Saint Paul community. ib) There is a public interest in using public reso rces to help certain vendors who have been targeted by he City to become viable actors in the local mark tplace. These targeted vendors include those who are � newly emerging, small , and economically disa vantaged. c ) The City has a demonstrated and continuing comm tment to praviding equal access to City programs for indi iduals and businesses. d) There is a public purpose ta be served in proc ri ng goods and servi ces f rom a wi de range of vendors and that the public procurement process is one appr priate mechanism that can be used to support those vend rs who have been targeted by the City as candidates for ssistance. e) The City has a long and successfiul track record of s pporting certain targeted vendors through the public proc rement process, however additional vendors need assi tance and there are needs that remain unmet. Sec. 81 .03. Definitions. For purposes of this chapter , the ollowing words and phrases shall have the meanings set orth in this section , except where the context clea ly indicates that a different meaning is intended. Econ mically disadvantaged small business means a busi ess entity based in Minnesota that has been in exis ence for one year that has been deprived ofi the oppo tunity to develop and maintain a competitive posi ion in the economy because of economic conditions and hat (a) is not a mature business; (b) is not an affiliate or subsidiary of a business dominant in its fiel of operation; c ) is not a non-stocking retailer or whol saler, a manufiacturer' s representative, a franchise or a business where the owner is owner or part owner of anot er similar business; or id ) is not a business which gros ed more than $1 , 000,000 in the qrevious fiscal year or h d employees who worked a total ofi 45 ,OOQ employee hour� in the previous f�scal year. A business is _ econ mically disadvantaged if: ( 1j the owner iacks adequate external support necessarY to operate a competitive bus�ness 2 � � - . � � . .� � � � ����3d i � � enterprise as evidenced by the diminished ability to secure long-term or working capital financing, equipment, raw material , or supplier trade credit; bonding and insurance; or if the business has not captured a proqortionate share of the market for its goods or services; or ( 2 ) the business filed its first annual federal and state income tax returns which reflected its operation as a business within the preceding five Years or wiil file its fiirst annual return which reflects its operation as a business within the next 12 , months. Elig�ible goods and services means those items annua1iy dete�Fmined by the purchasinq division to be available from� multiple sources and not governed by any special requ� rements that dictate the source or manner in which they are procured . Good and services means materials, supplies, equipment, trad , technical , or professional services, construction and evelopment projects. Matu e business means one that has attained the average or c ose to average perfiormance for a company of its age and ize as compared with state and national norms, has a de onstrated record of receiving contracts, or has a demo strated record of receiving working or long term capi al , supplier credit, bonds or insurance. Targ ted vendor means an economically disadvantaged sma11 busi ess. Sec. I81 . 04. Goals for Participation. ; ( a) The overai �I goa i ofi the program sha l �I be to qrov de temporary support and technical assistance to targ ted vendors so they may achieve a level of maturity and ecome viable actors in the 1oca1 marketplace without beco ing dependent upon the program for their long term succ ss. ( b) It is the goal of the City to award appr ximately 15% of the funds appropriated each fiscal year for the purchase of eligible goods and services to regi tered targeted vendors. 3 � , . . . . I, �. . ._.- � , � �p_�3D ,I . . (c) The purchasing division shall establish bid spec 'fications and purchasing decisions necessary to acco plish these targeted vendor goals. i Sec. 81 .05. Program Name, Scope, and Administration. (a) The program of providing temporary support and tech ical assistance to targeted vendors shall be known here "nafter as the Targeted Vendor Development Program. ( b) The purchasing division shall have the resp nsibility for the ongoing development and admi istration of the Program. The Division shall also mana e any other similar vendor programs for Ramsey Coun y and other users of the purchasing services as may be r asonably agreed upon among the parties. (c) The purchasing division shall annually unde take a range of activities to meet the needs of thos vendors registered in the Program. These acti ities shall inc7ude but not be limited to consulting with targeted vendors, providing information about purc asing procedures, identifying bidding opportunities and targeted vendors who may qua1ify to participate, and onsulting with City departments on future pro,7ects wher targeted vendors may be used. (d ) After initial registration in the program, the purc asing division may , in consultation with a targeted vend r, formulate a vencior development plan to serve as a gu de for the vendor in moving toward achieving mature busi ess status. Perfiormance aga�nst the pian may be used by the purchasin� division in evaluating whether the argeted vendor should be permitted to continue in the rogram. (e ) The purchasing division shall take steps to diss minate information about the program to potential appl 'cants and use recruiting methods that encourage a wide range of eligible vendors participation. (f) IThe purchasing division is authorized to develop and admi ister a performance bond fund program to provide perf rmance bonds for qual i f i ed targeted vendors as part of t e overall Program. Funds for this bond program may be eceived through provisions in City subsidized deve opment pro�jects, fees, or through grants and dona ions from private, governmental , and non-profit sour es. Sec. 81 .06 . App 1 i cat i on to Qua 1 i f y as a Targeted Vendor. Vend rs seeking to do business with the City as targeted 4 , , i . , . _ . � yo�3� ; . . . , . . � � � vend rs shall notify the purchasing division of their inte t. Applications establishing eligibility for the prog am shall be reviewed and an applicant interview cond cted by the purchasing division prior to becoming elig ' ble to submit bids as a targeted vendor. Sec. I81 .07 . Eligibility. (a> Applicants meeting all requirements of a targ ted vendor may be registered in the Pragram for one ( 1 ) ear. Program participants may be allowed to renew thei registrations annually, but not in excess of five cons cutive years. � (b) Applicants who are certified as economically disa vantaged small businesses in other ,jurisdictions may part 'cipate in the targeted vendor develapment program with ut proceeding through the certification process if they can demonstrate that the program guidelines under whic they were certified are materially similar to those used by the Purchasing Divisian. Proof to that effect from the certifying agency will be required prior to acce tance. The Purchasing Division has the right to scre n any applicant through its standard procedures rega dless of certification status in other juri dictions. � (c) The purchasing division may refuse to approve an o iginal or renewal application for participation as a ta geted vendor upon the grounds of misrepresentation of aterial facts, fraud, deceit or bad faith. The purc asing division may also withdraw its acceptance of any application at any time on the basis of ineligibility , a change in the composition of a targeted vend r which does not conform to the definitions herein or h s achieved mature business status. Any rejection or w 'thdrawal may be appealed to the Director of Finance and Management Services, who shall conduct an inve tigation and make a final determination about the elig,ibility of the vendor. ; ( d ) The purchasing division shall review each program participant' s record at the time of renewal and may refuse renewal ( 1 ) upon a finding that the participant has matured sufficiently so that ongoing tech ical support is no longer � needed, ( 2 ) eligibility was btained by misrepresentation of material facts , by f rau , by decei t or by bad fai th, ( 3 ) non-performance on a Ci ty contract, or by 1 ack of evi dence of good fai th efforts to advance the business to mature business stat s. The purchasing division may use state and nati nal industry averages, number of City contracts 5 � I� � � . � �- � , ��O o?�3� � . 'I awar ed , and participation in contracts firom other juri dictions as a basis for granting renewal in the Prog am. � (e) In the event that a business is not eligible for registration into the Program but is a bona fide fema e, minority, or handicapped owned business as defi ed by federal law, that business may be registered to p rticipate in City projects involving federal funds wher the sponsoring federal agency has requirements for women, minority, or handicapped business part �cipation. The purchasing division shall have the auth rity to gather such information from applicants as may e necessary to determine the nature and extent of busi ess ownership to comply with the applicable federal stat tes, rules, or regulations. When it is determined that an applicant does not meet the requirements of the Prog am but qualifies for participation in federal proj cts, the applicant shall be given a " limited regi tration" in the Program. (f) All vendors registered as a "set-aside busi ess" or "small business" under the provisions of the prev 'ous chapter 81 , at the time of the effective date of t is ordinance, shall be grand-fathered in the Program for period of up to 12 months from the effective date and ay apply for renewal provided that the vendor meets the ligibility requirements of this chapter. Sec. 81 . 08. Method of Award. In accordance with the prov sions of Minnesota Statutes 471 . 345 the purchasing divi ion may, whenever it deems it feasible, solicit bids that require the lowest responsible bidder to subcontract a portion or percentaqe of work to a vendor registered in he Program or may so7icit bids from among only vend rs registered with the Targeted Vendor Program. Sec. 81 .09 . Monitoring and Reporting. (a) The purchasing division is authorized to verify that the targeted vendors specified for City projects, whet er as contractors or subcontractors, are the vendors perf rming the work . Such verification may be acco plished by on-site inspections, requesting written info mation, or such other mechanisms that may be reas nable. ( b) Each targeted vendor shall , upon request of the purc asing division, permit access during normal business hour to the business work site, record, and files as need d to determine conformance to targeted vendor prog am requirements. 6 � I . • .. � ��0'��� i , � � ( c) The purchasing division shall take steps annu lly to review the overall performance of the program agai st the stated goals and shall take steps to modify prog am activities as necessary to accomplish such goals. As art of the annual review process, the purchasing divi�ion shall collect information from Program part 'cipants, among others. The Division shall also gath r information about the race, gender and physical stat s of targeted vendors for projects with federal part 'cipation requirements and to assist in determining whet er discrimination exists. I� (d) The purchasinq division shall annually prepare a re ort on the overall operation of the program. The repo t shall include information on the level of part ' cipation by targeted vendors in City projects, prog am activities , and an overali assessment of the prog am. It shall be transmitted the Mayor and City Coun il and shall be available for inspection by Program participants and the genera� public. Sec. 81 . 10 . Discrimination. In the event that a vendor feel that he or she has been discriminated against in the ward of a City contract, the vendor shall have the righ to file a grievance with the City Human Rights Depa tment and/or the State Human Rights Department. The proc dures to be used shall be those specified in Chapter 183 f the Saint Paul Legislative Code and Chapter 363 of t e Minnesota Statutes. Sec. 81 . 11 . Rules, Regulations, and Forms. The director of he department of finance and management services shall promulgate such rules, regulations and forms as may be needed to carry out the duties and responsibilities set orth herein. Sec. 81 . 12 . Advisory Committee. There is hereby created a Ta geted Vendor Advisory Committee consisting of seven memblers appointed by the Mayor and approved by the City Coun il . Members shall be selected from current program participants, persons knowledgeable in the fields of fin nce, law, small business development and women and min rity business development, and other metropolitan business development programs. The committee shall hold mee ings at such times as agreed upon by the members. The committee shali monitor the progress and impact of the program and make recommendations to the Purchasing Division in the certifying and servicing of targeted ven ors. 7 WHITE - CITV CLERK PINK - FINANCE GITY OF SAINT PAUL Coancil �D��0. CANARV -OEPARTMENT BLUE -MAVOR Flle NO. • Ordin�nce Ordinance NQ. Presented By Referred To Committee: Date Out of Committ e By Date Section 2 This {�rdinance shall take effect and be in force thirty days from and iter its passage, approval and publication. Section 81 . 12 of t e Legislative Code, as amended by this ordinance, shall automatica, ly terminate one year after the effective date of this ordinance lunless the City Council shall elect to re-enact that provision prior to that date. I I �I �, COUNCIL MEMBERS Yeas Nays Requested by Depactment of: n�mo�a 'nance d M na �� ' [n Favor coswitz �� �L3 Scheibel A gai n s t BY Sonnen Wilson A Form Approved b�' y Attorney f� Adopted by Council: Date Certified Passed by Counc 1 Secretary BY , f� :/, B �-' � v ; Y , Approved by Mayor: Datei Approved{'by or for Sub ission to ouncil�' �����i� By BY � � � � � � ���'V o��` 3 DEPARTMENTIOFFICE/COUNCIL ` DRTE INiTL4TED T NO. 7 5 3 9 '��J P u r c h a s�.n g �-2 6 9 o G R E E N S H E E CONTACT PERSOM 8 PFIONE �NIT�AU DATE INITUIUDA7E ��PARTMENT DIRECTOR �GTV COUNdL Jacki e Hicks �� �cm nrronr�er �CITY CLERK MUBT BE ON WUNqL AOENDA BY T� WOUTII�i �BUDOET aF�CTOR �FIN.8 MOT.SERVICES aR. 2-6-90 ❑MAYOR(OR A881STANn � TOTAL N OF 81GNATURE P GES 2 (CLIP ALL LOCATIONS FOR SIONATURE) ACTION RECUESTED: City Council approval of an ordina,nce amending Chapter 81 0£ the Legislative Code. R COMMENDATIONS:App►are W c► (Rl COUNCIL COMMiTTEE/REBEAPICH REPORT OPTIONAL ANALY8T PHONE NO. _PLANNING COMMISSION GVIL SERW�COMMI8810N _dB COMMITTEE COMMENT8: �STAFF _DI8TRICT COURT BUPPORT8 WFHCH COUNdL OBJE 7 INITIATINO PROBLEM,ISBtJE, NITY(WAo,WhN,WMn.Wlrre.Wh»: Recent court de -� ' ' -- �s have raised questions about the need and pu os ice clarifies the city's nolicy and commitment. �� � C.-�.� �;�...�/ a ��,�� ,�' ���.'�..,,.�.,,��r,,.� � � � ��� ADVANTAOES IF APPROVED: ' The ordi�an � and guidelines for the city's set-a-side o� DISADVANTAt�EB IF APPROVED: ��n — — — None. - — ��� CITY CLEh�� DISADYANTAfiE8 IF NOT Many econom cally di,sadvantaged businesses will not be able to compete for city contrac s and a dispx porti,onate share of said contxacts will be awarded to well-established businesses. This is contrary to the city's on-goin� efforts to enhance the viability of small bu inesses. �r�unceo t�esearcn Center. JAN 3 p 1990 ^o^ TOTAL AMOUNT OF TRANSA � COST/l�VENUE SIlDOETED(CIRCLE ONH) YE8 NO FUNDINO SOURCE ACTIVITY NUMOER FlNANCIAI INFOi�AATION:(EXPWN , -. � r , � � ` ..,. - !'" '`' � , ` �. '. . , NOTE: COMPLETE DIRECTIONS ARE INCIUDED IN THE aREEN 8MEET 1NSTRUCTIONAL MANUAL AVAILABLE IN THE PURCHASINt3 OFFICE(PFiONE NO.298�4225). ROUTING ORDER: Bebw are prefened routings for tha Hve rtw�t froquaM types of documerrts: CONTRACTS (setumes authorized COUNGL RE30LUTION (Amend, Bd�ts./ budpet exf�a) Axept.Grants) 1. Outside Agsncy 1. Departmsnt Diroctor 2. Initieting Ds�RmeM 2. Budgst Director 3. City Attomey 3. City Attorney 4. Ma�ror 4. MayorUesistent 5. Financs 3 Mgmt Svcs. Director 5. City Cou�cil 6. Ffnance Axounting 6. (�ief�kx�uMaM, Fln&Mgmt Svcs. ADMINI3TRATIVE ORDER �n, OOUNGL RE30LUTION �a��a)NANCE 1. Activiry Manager 1. In�iatinp DspaRment Director 2. DspartmeM AcoountaM 2• �Y A�Y 3. Department Director 3. MayorMaistaM 4. Budget DirsCtor 4. Gty COUndI 5. dry Gerk 6. Chisf Accountant, Fln&Mpmt Svcs. ADMINISTRATIVE ORDERS (all othsrs) 1. Initiating D�RmeM 2. CttY Attomsy 3. MaycxUaistaM 4. Gly Clerk TOTAL NUMBER OF SIONATURE PA(�1E3 Indicate the#ot pa�es on vrh�h signaturss are required and papercND sach of thsse�s4. ACTION REGIUESTED Dpecribs what the projecf/nqusst aeeks to accomplish in either chronologi- cal vder or oMsr of impoRenos,whichewr is most appropriate for ths issus.Do not write complsts ssritsnces. Begin each item in your list with a verb. ' RECOMMENDATIONS ��, Canplets M the issue in quation has bsen preseMed bsfore any body, public or privab. SUPPORTS YVHIqi�UNGL OBJECTIVE? Indicata which COUndf objsctiva(s)your p►ojacUrequest supports by lisdny the key._wwd(�)(HOUSINC�, RECREATION, NEIf3HBORHOODS, EOONOMIC DEVELOPMENT, BUOOET,3EWER.3E�ARATION). (SEE O�APLETE LI3T IN INSTRUCTIONAL MANUAL.) COUNqL COpAMITT�E/RESEARCH REPORT-OPTIONAL AS REQUESTED BY COUNGL INITIATINCi PROBLEM, ISSUE,OPPORTUNITY Explain the aRwtion or coor�didona that created a need for your proJsct or request. ADVANTACiEB IF APPROVED Indk.ete whmtMr this Is aimpnr an annuel budpst procedure requirod by law/ chartsr or whether thars ero ep�citisc wa in which the Cky of Seirn Paul and its citizsna will bsneflt from this pro�t/action. DISADVANTACiES IF APPROVED What nepative elfects or major changes to existing or past proceeses migM this proj�ct/nquest produce if ft is passed(s.p.,trafHc delays, noise, tax inc�or a�msnts)?To Whom?Whsn? For how bng? DISADVANTACiES IF NOT APPROVED 1Nhat wfll be the negativs con�qwr�cas if the promfaed action is not approvsd?Inabflity to deliver sorvice?Continued high traffic, noise, accident rate?Losa of revenus4 , FINANdAL IMPACT Akhou�h you must taibr the information you provide here to the issue you are�dressing, in�eneral you muat an�two questions: How m�h is it yoing to c�at?Who fs going to pay? , I ' . I�� Council File # - � ordinance # /?7 Z 3 � Green Sheet # ORDINANCE CIT�Y OF SAINT PAUL, MINNESOTA � � ��//�" ,.!1 I��Jr ♦ � �``1!/,�,(i/� � /i_ _ . . Presented By i Referred Committee: Date An ordinance azne�ding Chapter 81 of the Saint Paul Administrative Code pertaining to purchasing from set aside busi#�esses. The Council of the City of Saint Paul Does Ordain: Section 1 That Chapter 81 0�' the Saint Paul Administrative Code is hereby amended in its entirety to read as follows: � I Chapter 81. Targeted Vendor Development Program I Section 81.01. Dedlaration of Policy. The council of the City of Saint Paul, pursuant to the authority granted it by virtu� of the Uniform Municipal Contracting La.w does hereby support the policy of enhancing the viab ity of the various commercial entities through temporary aid and support to those persons and entiti identified herein by facilitating their participation as vendors to the City in its purchase of goods d services. - Sec. 81.02. Statemjent of Purpose and Findings. The City of Saint Paul has undertaken an extensive study of the needs �f certain groups of businesses and has evaluated past City efforts to support them. It is the �nding of ithe City that, a) Having a strong �nd varied community of persons and businesses enhances the City's fiscal strength, augments employn�ent opportunities for citizens, and fosters the overall health of the Saint Paul community. b) There is a publi� interest in using public resources to help certain vendors who have been targeted by the City to become viable actors in the local marketplace. These targeted vendors include those who are newly emergin�, small, and economically disadvantaged. c) The City has a d$monstrated and continuing commitment to providing equal access to City programs for individuals and businesses. [Draft wi�h amendments as of March 28, 1990] . `���Z� d) There is a public jpurpose to be served in procuring goods and services from a wide range of vendors and that the publiclprocurement process is one appropriate mechanism that can be used to support those vendors who �ave been targeted by the City as candidates for assistance. e) The City has a lqng and successful track record of supporting certain targeted vendors through the public procuremenx process, however additional vendors need assistance and there are needs that remain unmet. � � (� There is a publ�c interest to be served by such programs as this in that there is a promotion of businesses owned t#y female, minority or handicapped businesses that have historically been under- represented in city �urchasing. Sec. 81.03. Definit�ons. For purposes of this chapter, the following words and phrases shall have the meanings set forth �n this section, except where the context clearly indicates that a different meaning is intended. Economically disadivantaged small business means a business entity based in Minnesota that has been in existence for one year that has been deprived of the opportunity to develop and maintain a competitive positiop in the economy because of economic conditions and that (a) is not a mature business; (b) is not j an affiliate or subsidiary of a business dominant in its field of operation; c) is not a non-stocking reta�ler or wholesaler, a manufacturer's representative, a franchise or a business where the owner is owner i or part owner of another similar business; and (d) is not a business which grossed more than $1,0OO,OI00 in the previous fiscal year or had employees who worked more than a total of 45,000 employee h�urs in the previous fiscal year. A business is economically disadvantaged if: (1) the owner lack' adequate external support necessary to operate a competitive business enterprise as evidenced by the diminished ability to secure long-term or working capital financing, equipment, raw material, or suppl' r trade credit; bonding and insurance; or if the business has not captured a proportionate shar of the market for its goods or services; or (2) the business fil�d its first annual federal and state income tax returns which reflected its operation as a business with�n the preceding five years or will file its first annual return which reflects its operation as a busi�iess within the next 12 months. Eligible goods andl seivices means those items annually determined by the purchasing division to be available from mul�iple sources and not governed by any special requirements that dictate the source or manner in whiclh they are procured. Goods and service� means materials, supplies, equipment, trade, technical, or professional services, construction and d�velopment projects. Mature business ffieans one that has attained the average or close to average performance for a company of its age and size as compared with state and national norms, has a demonstrated record of receiving contracts„ or has a demonstrated record of receiving working or long term capital, supplier credit, bonds or in$urance. Targeted vendor m�ans an economically disadvantaged small business. A targeted vendor may include, but not be limited to, female,minority or handicapped owned businesses, but such businesses must meet all other definitions set forth in section 81.03. [Draft with amendments as of March 28, 1990] 2 i I . � - ' �� ��� Sec. 81.04. Goals �or Participation (a) The overall go�l of the program shall be to provide temporary support and technical assistance to targeted vendors so they may achieve a level of maturity and become viable actors in the local marketplace without becoming dependent upon the program for their long term success. (b) It is the goal o�the City to award approaumately 25% of the funds appropriated each �scal year for the purchase o eligible goods and services to registered targeted vendors. (c) The purchasin� division shall establish bid specifications and purchasing decisions necessary to accomplish these ta�rgeted vendor goals. Sec. 81.05. PrograIIp Name, Scope, and Administra.tion. (a) The program Iof providing temporary support and technical assistance to targeted vendors shall be known hereinaf�er as the Targeted Vendor Development Program. (b) The purchasing division shall have the responsibility for the ongoing development and administration of tHe Program. The Division shall also manage any other similar vendor programs for Ramsey County an$ other users of the purchasing services as may be reasonably agreed upon among the parties. (c) The purchasin� division shall annually undertake a range of activities to meet the needs of those vendors registered n the Program. These activities shall include but not be limited to consulting with targeted vendors, p oviding information about purchasing procedures, identifying bidding opportunities and targeted vendo s who may qualify to participate, and consulting with City departments on future projects where targ ted vendors may be used. The purchasing division shall also meet at least quarterly with representative of other business assistance programs operated by the city to coordinate activities and shall refer tar eted vendors to those programs for information and technical assistance. (d) After initial negistration in the program, the purchasing division may, in consultation with a targeted vendor, foprmulate a vendor development plan to serve as a guide for the vendor in moving toward achieving mjature business status. Performance against the plan may be used by the purchasing division in evaluati$�g whether the targeted vendor should be permitted to continue in the program. (e) The purchasin� division shall take affirmative steps to disseminate information about the program to potential applicalnts, including female, minority or handicapped owned economically disadvantaged small businesses, alnd use recruiting methods that encourage a wide range of eligible vendors to participate in the p�rogram. (� The purchasing;division is authorized to develop and administer a performance bond fund program to provide perform�nce bonds for qualified targeted vendors as part of the overall Program. Funds for this bond program �nay be received through provisions in City subsidized development projects, fees, or through grants �nd donations from private, governmental, and non-profit sources. Sec. 81.06. A.ppli 'on to Qualify as a Targeted Vendor. Vendors seeking to do business with the City as targeted vendo shall notify the purchasing division of their intent. Applications establishing eligibility for the p ogram shall be reviewed and an applicant interview conducted by the purchasing division prior to b oming eligible to submit bids as a targeted vendor. i [Draft with amendments as of March 28, 1990] 3 , . ,� f�.-o`�� Sec. 81.07. Eligibilpty. (a) Applicants mee�ting all requirements of a targeted vendor may be registered in the Program for one (1) year. Program iparticipants may be allowed to renew their registrations annually. (b) Applicants wh� are certified as economically disadvantaged small businesses in other jurisdictions may participate ui. the targeted vendor development program without proceeding through the certification proce s if they can demonstrate that the program guidelines under which they were certified are mater�ally similar to those used by the Purchasing Division. Proof to that effect from the certifying agency 11 be required prior to acceptance. The Purchasing Division has the right to screen any applicant thro gh its standard procedures regardless of certification status in other jurisdictions. (c) The purchasin� division may refuse to approve an original or renewal application for participation as a targeted venddr upon the grounds of misrepresentation of material facts, fraud, deceit or bad faith. The purchasing di�jision may also withdraw its acceptance of any application at any time on the basis of ineligibility, a �hange in the composition of a targeted vendor which does not conform to the definitions herein qr has achieved mature business status. Any rejection or withdrawal may be appealed to the Director of�inance and Management Services, who shall conduct an investigation and make a final deternunatio� about the eligibility of the vendor. (d) The purchasin� division shall review each program participant's record at the time of renewal and may refuse renew 1 (1) upon a finding that the participant has matured sufficiently so that ongoing technical support i no longer needed, (2) eligibility was obtained by misrepresentation of material facts, by fraud, by decei or by bad faith, (3) non-performance on a City contract, or by lack of evidence of good faith efforts o advance the business to mature business status. The purchasing division may use number of City co tracts awarded, and participation in contracts from other jurisdictions as a basis for granting renewal ' the Program. (e) In the event hat a business is not eligible for registration into the Program but is a bona fide female, minority, r handicapped owned business as defined by federal law, that business may be registered to part�cipate in City projects involving federal funds where the sponsoring federal agency has requirements �1or women, minority, or handicapped business participation. The purchasing division shall have the autl�ority to gather such information from applicants as may be necessary to determine the nature and ex�ent of business ownership to comply with the applicable federal statutes, rules, or regulations. Whe� it is detemuned that an applicant does not meet the requirements of the Program but qualifies for p�articipation in federal projects, the applicant shall be given a "limited registration" in the Program. (f� All vendors rjegistered as a "set-aside business" or "small business" under the provisions of the previous chapter 1, at the time of the effective date of this ordinance, shall be grand-fathered in the Program for a pe od of up to 12 months from the effective date and may apply for renewal provided that the vendor mjeets the eligibility requirements of this chapter. Sec. 81.08. Method of Award. (a) In accordanCe with the provisions of Minnesota Statutes 471.345 the purchasing division may, whenever it deem it feasible, solicit bids that require the lowest responsible bidder to subcontract a portion or percen�age of work to a vendor registered in the Program or may solicit bids from among only vendors regi�tered with the Targeted Vendor Program. (b) When deemtd necessary to achieve the goals for participation, as provided for in section 81.04, the purchasing division may award a contract to a registered targeted vendor provided that the price [Draft wiith amendments as of March 28, 1990] 4 � . . �a.� �shall not exceed by 5% the purchasing division's estimated price for the goods and services if they were purchased on the o�en market and not under the provisions of this program. Sec. 81.09. Monitomng and Reporting. (a) The purchasin�division is authorized to verify that the targeted vendors specified for City projects, whether as contrac�ors or subcontractors, are the vendors performing the work. Such verification may be accomplished by� on-site inspections, requesting written information, or such other mechanisms that may be reasonable: (b) Each targeted vendor shall, upon request of the purchasing division, permit access during normal business hours to �he business work site, record, and files as needed to determine conformance to targeted vendor prpgram requirements. (c) The purchasin� division shall take steps annually to review the overall performance of the program against the stated �oals and shall take steps to modify program activities as necessary to accomplish such goals. As par� of the annual review process, the purchasing division shall collect information from Program participar�ts, among others. The Division shall also gather information about the race, gender and physical status� of targeted vendors to assist the city in determining whether discrimination has occurred in the pu�lic contracting process and to permit the city to comply with federal participation requirements that may apply to city projects. (d) The purchasing division shall annually prepare a report on the overall operation of the program. The report shall i�clude, but not be limited to, information on the types and numbers of businesses certified or recer�ified in the program; the number and dollar value of contracts awarded to economically disadf vantaged businesses who are small, or owned by women, minorities, or handicapped individuals; the pe�centage of participation of targeted vendors in city projects, reasons for not using targeted vendors i city projects; outreach and recruiting activities, and an overall assessment of the program. It shall l�e transmitted the Mayor and City Council and shall be available for inspection by Program participa�ts and the general public. Sec. 81.10. Discri�ination In the event that a vendor feels that he or she has been discriminated against in the awa d of a City contract, the vendor shall have the right to file a grievance with the City Human Rights De artment and/or the State Human Rights Department. The procedures to be used shall be those spe ified in Chapter 183 of the Saint Paul Legislative Code and Chapter 363 of the Minnesota Statute�. Sec. 81.11. Rules,�egulations,and Forms. The director of the department of finance and management services shall pron�ulgate such rules, regulations and forms as may be needed to carry out the duties and responsibilitie� set forth herein. � Sec. 81.12. Advispry Committee. There is hereby created a Targeted Vendor Advisory Committee consisting of sever�members appointed by the Mayor and approved by the City Council. Members shall be selected from �u rrent program participants, persons knowledgeable in the fields of finance, law, small business de�telopment and women and minority business development, and other metropolitan business develop ent programs. The committee shall hold meetings at such times as agreed upon by the members. e committee sha11 monitor the progress and impact of the program and make recommendations;to the Purchasing Division in the certifying and servicing of targeted vendors. Sec. 81.13. Penal� for fraud, misrepresentation. It shall be a misdemeanor for any person to furnish or to provide frau ulent or false information for the purpose of gaining eligibility to or participation in the targeted ve}�dor development program, and upon conviction the person shall be subject to the penalties set fortl� in section 1.05 of this code. [Draft wi;th amendments as of March 28, 1990] 5 . . � � � � �o��3d � Section 2 This ordinance shall�Itake effect and be in force thirty days from and after its passage, approval and publication. Sectiot� 81.08 (b) of the Legislative Code, as amended by this ordinance, shall automatically terminrate one year after the effective date of this ordinance unless the City Council shall elect to re-ena�t this provision prior to that date. I I i I � Yeas Nays Absent g�uested by Departme.nt of: � Goswi z n +- c ee ; e �_ Ai son BY� Adopted by Counci : Date Form App ed City Attorn y Adoption Certifie� by Council Secretary gy. 9 - I �'= A�prav by Ma r for Sukmtission to APProved by Mayor: Date ��. �� �� [Draft witlh amendments as of March 29, 1990]