97-840�L
BE IT ENACTED BY THE COLTNCIL OF THE CITY OF SAINT PAUL:
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ORDINANCE
CITY OF SAINT PAUL, MINNESOTA
Presented
Referred
An ordinance to enact the
2 Vendor Outreach Program
3 as new Ctiapter 84 of the
4 Saint Paul Admiuistrative Code.
Section 1
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The following new Chapter 84 is hereby enacted as part of the Saint Paul
Administrative Code:
Sec. 84.01. Declaration of Policy and Purpose.
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The ordinance is based on and responds to the information and evidence of
discrimuiation against women and minorities documented by the Study submitted by BBC
Research & Consulting, September 1995, to the City of Saint Paul and the Study submitted by
the Insutute on Race and PovertX. February. 1996. to the Ciry of Saint Paul. In doing so, this
ordinance is intended to remedy and correct the effects of past discriminauon in construction,
goods, services and professional services whose effects still burden small and minority-owned
and women-owned basinesses in the City.
This ordinance will help prevent future discrimination against vendors and contractors
who provide goods and services to the City, or engage in the completion of construction
contracts to which the City is or shall be a party. It is intended to further discourage and
prevent discriuiination on account of race or gender.
It is the policy of the Ciry both (a) to attempt to provide a remedy for past
underutilization of qualified minority- and women-owned businesses and economically
disadvantaged small businesses, and (b) to prevent ongoing underutilizarion of such businesses
in the City's conuacting process, bp facilitating their participation as vendors to the City in its
purchase of goods, services, and construction of public buildings and pubiicly-assisted
projects, and its various economic development activities.
The policy of the City is to promote increased participation by qualified, minority-
owned, women-owned, and economically disadvantaged small businesses 3n public contracting �
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that is comparable to their availability in the Saint Paul marketplace. To this end, the Ciry
shall set annual benchmarks or levels of participation for MBE, VJBE, and economically
disadvantaged small business participation in City contracting activiries based upon their
current availability within the marketplace. These levels of participation shall not be quotas.
The levels that are established shall be reviewed every three years, and the participation of
such businesses shall be reviewed every three years, to insure (1) that the program does seek
no more than to remedy the effects of past discrimination and prevent future discrimination,
and (2) that the program does not become over time a race- ar gender-based entiflement or
quota program, nor become a limitation or cap on the participarion of qualified businesses.
Sec. 84.02. Short Title.
This ordinance and the program it enacts shall be cited as the "Vendor Qutreach
Program."
Sec. 84.03. Detinitions.
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.
`Affiliate or subsidiary of a business dominant in its field of operation" means a
business that is at least 20 percent owned by a business douiinant in its field of operation, or by
partners, officers, directors, majority stockholders, or their equivalent, of a business dominant
in that field of operafion.
`Broker"means a business that carries no inventory and that has no written or oral
ongoing agreement with any manufacturer or manufacturer's authorized distributor to sell the
products of the manufacturer. This definition is not intended to include businesses who
actively use just-in-time methods in their normal operation.
32 �usiness, or business entity "means a contractor, developer, vendor, subconuactor,
33 supplier, consultant, or provider of technical, administrative, or physical services, regardless
34 of whether operating as an individual or organized as a sole proprietorship, partnership,joint
35 venture, association, cooperative, corporation, or other entiry which is arganized for profit.
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"City °means the City of Saint Paul, Minnesota.
"Construction and development projects"means (a) construction and development
projects, (b) the construction, alteration, painting or repair of a building ar any struciure on
land, (c) any construction, building, alteration, reconstruction, modernization or improvement
of any structure, and (d) the improvement of, or addition to, any capital asset.
`Developer"means a business which contracts with or seeks to contract with the City
for any construction and development project in which the contractual documents therefor
provide that either the City or the Housing and Redevelopment Authoriry of the City of St.
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Paul, Minnesota, ("HRA") (a) will receive, at any time, legal or equitable tifle to the land, or
any building or strucnue thereon, which is part of such project, excluding fitle or property
interests to or for public rights-of-way for pedestrian or vehicle transit, ingress or egress, or
(b) is obligated to issue general obligarion bonds, or provide financing supported by a full faith
and credit pledge.
`Director"means the Director of the Division of Cornract and Analysis Sezvices in the
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Department of Technology and Management Services of the City, together with such designees
or staff persons as he or she may d'uect to carry out funcuons under this ordinance.
`Dominant in its fzeki of operation" means having more than 20 full-time employees and
more than $1,000,000 in annual gross revenues or $2,500,000 in annual gross revenues if a
technical or professional service.
`�'DB, or Economically-disadvantaged small business "means a business entity whose
principal place of business is in the marketplace and which has been in operation one year or
more that:
(a) is not a business dominant in its field of operation, nor an affiliate or subsidiary
thereof; and
(b) is not a broker, or a manufacturer's representative, does not operate as a franchise
or under a franchise agreement, and is not a business in which the owner is also owner
or part owner of one or more businesses; and
(c) is not a business whose average gross revenues for at least three (3) of the past five
years exceeds 65 percent of the average adjusted gross revenues as shown by its federal
tax returns for the same three-year period for its Standard Industrial Classification (SIC)
code as adjusted by the 3tate of Minnesota pursuant to statute.
`�ranchise, or franchised business"means a business operated under an operating
agreement obtained from a franchiser to conduct a business where the franchiser retains the
right to (1) direct, ar set requirements for, certain elements of the business, or (2) receive
compensation for use of the franchise or the goodwill or business name.
"Goods and services"means and includes (a� materials, supplies, equipment, all things
which are movable, and all tangible personal chattels, whether or not intended or suitable for
becoming a fixture when attached to real properry; @} labor and work; and (c) services of any
kind, including consultant, trade, technical, and professional services.
"Joint venture"means an association of two or more persons or businesses to carry out
a single business enterprise for profit for which purposes they combine their property, capital,
skills, knowledge and management in an agreed-to proportionate share.
"Manufacturer"means a business that makes or processes raw materials into a finished
product.
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`�lanufacturer's representative" means a business that has an agreement with one or
more manufacturers ar manufacturer's authorized distributors to sell the products of the
manufacturer, but that is not an employee of the manufacturer.
"Marketpluce"means the geographical area of the Minnesota counties of Anoka,
Benton, Carver, Chisago, Dakota, Hennepin, Isanri, Rawsey, Scott, Sherbume, Stearns,
Washington, and Wright; and the VJisconsin counties of Pierce and St. Croix.
"Minority"means a citizen of the United States or lawfully admitted permanent resident
who is Asian-American, Native American, African-American, or Hispanic.
"MBE, or minority-owned business enterprise"means a qualified business located in the
marketplace or doing business in the marketplace at the tune of bid opening or solicitation (a)
which is at least 51 percent owned by one or more miuoriry persons, or, in the case of any
publicly owned business, at least 51 percent of the stock is owned by one or more minoriry
persons; and, (b) whose management and daily business operations are controlled by one or
more minoriry persons who own it.
`Prime, or prime contractor"means a business engaging in construction and
development projects by contractual agreement, or in prime contracts, with the City. The terms
also include a developer who or which may enter into a contract with the City for a particular
construction and development project, and which necessarily contemplates that the developer
will also enter into other or fiu�ther contracts for the completion of the said project.
25 `Prime contract"means a contract with a prnne contractor for the completion of a
26 construction and development project, as to which it is reasonably likely that the prnne
27 contractor will use, contract with, or seek bids from, one or more subcontractors. A prime
28 contract also includes a contract with a developer, where such contract or the particular
29 "construction and development projecY' necessarily contemplates that the developer will enter
30 into other or further contracts for the completion of the project.
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"SIC'; or `�'IC Code"means the Standard Industrial Classification code as promulgated
and maintained by one or more agencies or departments of the United States, and includes any
code or system which replaces or succeeds the code in existence on July 1, 1997."SIC' or "5IC
Code" shall also include classification codes promulgated and maintained by the American
Institute of Architects or other arganizations concerned with contracting which, in the
discretion of the Director, are deemed more useful or suitable for carrying out the purposes of
this chapter.
"Vendor"means a business selling goods and services to the City, as well as other
services, including construcuon and development projects for which there will be no
subcontracts.
"[�endor contract"means a contract with a vendor as to which the vendor will not use,
contract with, or seek bids from, subcontractors.
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"WBE, or women-owned busfness enterprise °means a qualified business concern
2 located in the mazketplace or doin$ business in the marketplace at the time of bid opening or
3 solicitation (a) which is at least 51 percent owned by one or more women, or, in the case of
4 any publicly owned business, at least 51 percent of the stock is owned by one or more women;
5 and, (b) whose mauagement and daily business operations are controlled by one or more
6 women who own it.
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Sec. 84.04. Applicability.
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The provisions of this ordinance st�all apply ta all contracts which are awarded or
entered into by the City, including vendor contracts and prune contracts, except as may be
hereinafter specifically exempted, and sha11 be liberally construed for the accomplishment of its
policies and purposes. Any bid, as to which there is or has been a materiallack of compliance
with the requirements of this chapter 84 by any bidder, shall be deemed to be an unresponsive
bid, and such lack of wmpliance shall be a sufficient basis for the rejection of that bid by the
Directar. Every contract covered by this chapter, which is entered into without bidding, shall
include provisions which (a) obligate the prime contractor, developer and vendor to fully
comply with the applicable outreach requirements imposed in this chapter, (b) provide that
failure to so comply is a breach of such contract, and (c) provide remedies for such breach.
Sec. 84.05. Administration.
(a) The Director shall d'uect and administer the Vendor Outreach Program.
(b) The Director may contract with other governmental agencies to administer programs
for such other agencies which are similar to the Vendor Outreach Program, provided that the
City is fully protected from liabiliry and risk of loss arising out of such contract or contracts.
The Director may also contract with nongovernmental agencies far the administrauon of a11 or
part of ffie Vendor Outreach Program.
(c) All departments and o�ces of the Ciry shall share in the responsibility for
accomplishing the policy and purposes of the Vendor Outreach Program. The mayor may by
administrative order provide for additional activities and reports in furtherance of said
Program. In particular, the Director shall work jointly with other city deparrinents and offices
to establish levels of utilization of EDBs, MBEs and WBEs in and for professional services
contracts and any other categories of purchases that may help the City to accomplish the
overall purpose of the program.
Sec. 84.06. Establishment of Desired Leveis of Participation.
(a) Annual Participation. The Director shall establish, as provided in this section, on an
annual basis, the desired levels of participation of EDBs, of MBEs and of WBEs in vendor
contracts and prime contracts for the next fiscal year, expressed as a percentage, for each, of
the reasonably anucipated total dollar amount of all such contracts. Such levels of participation
shall be adjusted, from time to time during the course of the year as may be necessary, based
on changes in the availability of EDBs, MBEs and WBEs in the mazketplace.
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1 (b) Adjustments for individual prime contracts. The D'uectar shall also establish and{or,
2 where appropriate, modify levels of participation by subcontractors, which may be more or
3 less than the annual levels estahlished in subsection (a), for individual prime contracts, taking
4 into account the total dollars of the contract and the dollazs in the contract which may
5 reasonably be expected to be subcontracted. In setting such level of participation, the Director
6 shall also take into account and remove from consideration those amounts and works under the
7 contract and subcontracts which cannot be performed or supplied by subcontractors which are
S certified as eligible for participation in the Vendor Outreach Program. Such levels of
9 participation shall be established by SIC Code where appropriate, and the D'uector shall
1Q indicate which codes included within the definition of SIC Code are being used and for what
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purposes.
(c) Factors. In setting levels of participation of EDBs, MBEs and WBEs, whether
annually under subsection (a) above or for individual prnne contracts under subsection (b)
above, the Director shall endeavor to arrive at the number of such businesses (i) which are
currently available in the marketplace and which are qualified to do ffie particular work
required by the Ciry contract, and (ii) which would reasonably be expected by normal
economic and business operation and market forces to participate in such vendor contracts and
prime contracts, in the absence of present discrnnination or the effects of past discrunination.
The D'uectar shall consider the following factors in establishing levels of participation:
(1) the practical, as opposed to theoretical, availability of EDBs, MBEs and WBEs
("such businesses" in this subsection) in the marketplace;
(2) the particular goods and services, or construction or development projects, for
which such businesses are available;
(3) the past levels of participation of such businesses in City vendor contracts or as
subcontractors in city prime contracts;
(4) the reasonably anticipated number and amount and type of City vendor contracts
and subcontracting opportunities in City prime contracts for the next fiscal year;
(5) whether the reasonably anticipated contracts are for goods or services, or
construction contracts, for which there are few or no such businesses available or
qualified to do the particular work, or to do subcontracts;
(6) whether such businesses will be able to obtain necessary bonds, insurance policies,
and equipment or personnel required to perform such Ciry vendor contracts or
subcontracting on prime contracts;
(7) as to professional services, the levels of participation ffiat are established by other
Ciry departments and offices;
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(8) wheffier the reasonable and necessary requirements of the contract render
subcontracting or other participation of business other than the bidder or proposer
infeasible;
4 (9) whether a public or administrative emergency e�sts which requires the goods or
5 services, or construction or development project, to be delivered or performed with
6 unusual immediacy;
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(10) whether the number of certified EDBs, MBEs or WBEs providing the services
required by the contract are so few as to render them unavailable in practical terms,
despite attempts to locate them; and
(11) whether the application of the provisions of this ordinance will impose an
unwarranted risk on the City or unduly delay acquisition of the goods or services, or
completion of the construction or development project.
��2Zavailabilitv shall be construed as broadly as is lawful and reasonably�ossible in
order to effectuate the goals of this ordinance.
f13) and the Director shall develo.� and administer a�rogram to assist certified
businesses to obtain bondin�and insurance.
Sec. 84.07. Certi�cation of businesses.
(a) Requirement,• two years. Any EDB, MBE, or WBE ("such business" or "such
businesses" for the remainder of this section) which seeks to participate in, or avail itself of the
benefits of, the Vendor Outreach Program, must first be certified. Once certi�ed, the
certification is valid for the following two calendar years, and thereafter, for two-yeaz periods.
(b) Application. Such business sha11 file an application with the Director, and provide
such information on such forms as the Director may reasonably require. The Director may
require information (1) that will establish that such business meets and will continue to meet
the defuution of an EDB, MBE or WBE, as the case may be, for the entire period of
certification, and (2) as to the availability and qualifications of such business, the areas of City
vendor contracts or prime contracts such business seeks, and the number and dollar amount of
past City contracts it has been a parry to or participated as a subcontractor.
(c) Cenifzcation of another jurisdiction. The Director may, in his or her sole discretion,
waive all or part of the application process, and waive the submission of information required
thereunder, as to any such business which has been certiFied under a program substautially
sunilar to the Vendor Outreach Program. The burden is on the applicant to furnish a copy of
the application and supporting information from the other program, and to demonstrate to the
satisfaction of the Director that the guidelines and requirements of the other program are
substantially similar to those required under the Vendor Outreach Program.
(d) Joint applications. The Director may cooperate with any other govemmental entiry
having a program substanfially similar to the Vendor Outreach Program in providing for a joint
or mutually acceptable application process.
(e) No certification. The Director may deternune not to certify an applicant if such
business sells a product or service which ffie City, either itself or for another govermnental
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entiry, (1) has in the past either not purchased or purchases in very limited amounts, or (2) is
not likely to purchase in the foreseeable future.
4 (fl Change in circumstances. If the D'uector determines that any such business no
5 longer meets the flefinition of EDB, MBE or WBE, as the case may be, the Direcior may
6 tenrunate the certification of such business. Each such business, which has been certified is
7 and remains under a continuing obligarion to report to the Director any change in
8 circumstances affecting it that would cause it not to meet the appropriate defuution.
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(g) Material misstatement of fact. If the Director detern�ines that any such business
made a material misstatement of fact in its application for certification or in any information
submitted in support of the application, whether intentional or by mistake, the Director may
determine either not to certify such business for participation in the Vendor Outreach Program,
or to ternunate the certification of such business if already granted.
(h) Appeal. Any such business whose application for certification has not been granted,
or whose certification has been terminated, by the Director may appeal to the Director of the
Office of Technology and Management Services (°TMS Director"). Such appeal shail be
decided on written submission and where appropriate in the discretion of the TMS Director,
with an informal conference of such business with the Director and his or her staff.
(i) Periodic review. The certification for each such business may be reviewed
periodically by the Director to deternune that it continues to be eligible for certification and
meets the definitions of an EDB, MBE or WBE, as the case may be, but such review shall take
place at least every two years after its initial certification. The Director may reguire each such
business which has been certified to submit all information necessary to verify the continued
eligibility of such business, and the failure of such a business shall automatically terminate its
eligibiliry to participate in the Vendor Outreach Program.
(i) Targeted vendor development program. A business which is registered as a"targeted
vendor" pursuant to Sea 81.07, Saint Paul Adi7iinistrative Code, on the effective date of this
ordinance shall be certified as an EDB, MBE, or WBE, as the case may be, and shall be
included in the Vendor Outreach Program far a period of six months following the effective
date of this ordinance. The Director shall norify all such targeted vendors of the provisions of
tlus ordinance. During such six month period, all such targeted vendors which wish to be
fiirther certified shall make request to be further certified in confornuty with the requirements
of this subsection (j). Upon receipt of such a request, the Director shall review any materials
previously filed to determine compliance with certification requirements. Where current
materials are insufficient to determine compliance, additional materials may be requested. Any
targeted vendors failing to submit a request to continue, or failing to submit all additional
materials which may be requested by the Director, will be tenninated and will have to submit
to a new certification process.
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5ec. 84.08. Prime coutract bid requirements.
3 (a) Evidence of compliance with bid documents. Each apparent low bidder on a ciry
4 prime contract is required to submit, before the bid is awarded to it, evidence of its compliance
5 with the requirements of the Vendor Outreach Progtam, on such forms as the Director may
6 prescribe. Such forms may include a certification by the bidder that the bidder will not use anp
7 subcontracts on the particular job. S�ch evidence shall be submitted after the opening of ffie
8 bids, and on or before a date to be established by the Director, but in no case after the tenth
9 day following the opening of such bids.
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@) Compliance with outreach requirements. S�ch a bidder shall submit evidence (1)
that it has complied with the outreach requirements of the Vendor Outreach Program specified
in subsection (c) in this Section 84.08, and (2) that it sought to enter nrto subcontracts with
certified EDBs, MBEs andlor WBEs who aze willing and qualified to do the work required by
the particular subcontract. Such evidence shall be submitted on such forms and meeting such
requirements as the Director may determine necessary to establish that the bidder did comply
fully and completely with such outreach requirements. The presence of fraud,
misrepresentauon, or intenuonal discriinination by the bidder shall negate compliance with
outreach requirements hereunder.
(c) Outreach requirements. The following steps are required for compliance with the
outreach requirements of the Vendor Outreach Program in this SecUOn 84.08.
(1) List each possible subcontract opportuniry in the prime contract, indicating where
possible the SIC Code of such wark, seeking the assistauce of the Director in
ascertaining such subcontract opportunities.
(2) Obtain a current list of certified EDBs, MBEs and WBEs from the Director, which
list shall contain where available the applicable SIC Code ar Codes for such businesses.
(3) Attend all pre-bid conferences to abtain information about the Vendar Outreach
Program, the levels of participation of certified EDBs, MBEs and WBEs, and the
outreach requirements herein.
(4) Request assistance from minarity and women community organizations, minority
and women contractor groups, or other organizations that provide assistance to in the
recruitment and placement of EDBs, MBEs or WBEs.
(5) Obtain a current list of minoriry and women publications from the Director.
(6) Solicit bids from certified EDBs, MBEs and WBEs, which have been idenfified by
the Director in consultauon with the bidder as being available and capable of
performing the necessary work, far the subcontracts within the prime contract at least
ten days prior to bid opening, by ghone, advertisement in a local paper and the relevant
minority publications on the list obtained from the Director, or other means specified
by the Director, by written notice to the bidder. The bidder for the prime conuact must
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soficit bids from a minimum of five such certified businesses for each subcontract
2 withiu the prime contract, by SIC Code where available and applicable. If the
3 applicable cer[ified list, using the SIC Code or Codes where available, is five or fewer,
4 such bidder must contact the entire list.
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6 (7) Provide plans and spe�ifications or information regarding the location of plans and
7 spec�carions to certified EDBs, MBEs or VJBEs.
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(8) Where applicable, advise and make efforts to assist interested EDBs, MBEs and
WBEs to obtain bonds, lines of credit, or insurance required to perform the contract.
(9) Submit documentation if bids from certified EDBs, MBEs or WBEs were rejected,
giving the complete basis for the rejection and evidence that the rejection was justified.
(10) Bidders on prime contracts who continuously list the same certified EDBs, MBEs
and FVBEs as having been contacted and listed as unavailable, when contact has
previously been unsuccessful as a result of disconnected phone numbers or returned
mail, will not be deemed to be in compliance with the outreach requirements.
(d) Alternative compliance. Notwithstanding the foregoing, a bidder on a prime contract
shall be deemed to have complied with the above outreach requirements of the Vendar
Outreach Program, if such a bidder submits evidence with its prime contract bid documents
that it has already entered into binding contracts with certified subcontractors whose contract
dollar amounts meet the levels of participation established for that prime contract. A
subcontractor is certified for the purpose of this subsection if it is certified before the award of
the contract. If such bidder submits the name of a proposed subcontractor to satisfy this
Program, and the subcontractor is not certified before the award of the bid, the dollar amount
of tltat subcontract will not be couuted in determining the level of participation of certified
EDBs, MBEs and WBEs, and the bid may be rejected as being unresponsive if the bidder has
not otherwise complied with the above outreach requirements of the Vendor Outreach Program
as required by this Section 84.08. Bidders shall not count toward the desired level of
participation any agreements with businesses that are not located within the marketplace or
otherwise do not meet the guidelines as set forth in this ordinance. The bidder may include
first and second tier subcontractors and suppliers as meeting the desired levels of participation.
Sec. 84.09. Vendor contract requiremeuts.
(a) Director compliance. The Director shall, consistent with applicable laws and
statutes relating to competitive bidding and awards of contracts to the lowest responsible
bidder, seek where possible and lawful to award a portion of vendor contracts to certified
EDBs, MBEs and WBEs, in accordance with the annual levels of participation for such
businesses established pursuantto Sec. 84.06 above.
(b) Outreach requirements. The D'uector shall engage in one or more of the following
outreach steps in order to achieve the desired level of garticipation for all Ciry vendor
contracts:
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(1) Solicit bids, proposals or quotations from certified EDBs, MBEs and WBEs for ihe
vendor contracts grior to bid opening by phone, advertisement in a local paper, or other
means.
(2) Provide plans and specifications or information regarding the location of plans and
specifications to certified EDBs, MBEs or WBFs.
(3) Request assistance from minority and women community organizations, minority
and women contractor groups, or other organizations that provide assistance to such
minoriry and women contractor groups in the recruitment and placement of EDBs,
MBEs or WBEs.
(4) Where applicable, advise and make efforts to assist interested EDBs, MBEs and
WBEs to obtain bonds, lines of credit, or insurance required to perform the contract.
(5) Prepare and maintain documentation if bids from certified EDBs, MBEs or WBEs
were rejected, giving the complete basis for the rejection and evidence that the rejection
was justified.
(c) Unmet Zevels of participation. In the event that the number and dollar amount of
vendor contracts awarded to EDBs, MBEs and WBEs does not rise to the levels of
participation that were established under Sec. 84.06 of this ordinance, the Director shall re-
examine the procedures ased by the Director and other City o�cials for the processing and
award of contracts. VJhere appropriate, the Director may seek changes in such procedures by
ordinance or administrative order.
Sec. 84.10. Monitoring and Reporting.
(a) Inspection. The Director is hereby authorized to verify that the certified EDBs,
MBEs or WBEs working on any City vendor contract or on any City prime contract are
certified, remain eligible and certified, actually performing the work, and otherwise in
compliance with the Vendor Outreach Program. Such verification may be made by on-site
inspection, requesting written information from the bidder or the subcontractor, or by such
other means as may be reasonable.
(b) Access to records. Each certified EDB, MBE or WBE shall, upon request of the
Director, permit access during normal business hours to its business wark site, records, and
fIles as needed to determine conformance with Program requirements herein.
(c) City reports. Each City department and office shall prepare reports documenting the
levels of participation established for professional service agreements for the particular fiscal
year, and the results of their efforts to meet those goals. The Deparnnent of Planning and
Economic Development shall prepare reports documenting goals established for development
and other grant projects under its jurisdiction, and the results of its efforts to meet those goals.
The Divlsion of Contract and Analysis Services shall prepaze similar reports for those
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contracts under its jurisdiction. These reports shall be filed with the Director of Technolagy
and Management Services in accordance with established schedules.
participants and other interested parties.
(d) Report of the director. The Director shall annually submit a report to the Mayor and
City Council summarizing the information gathered pursuant to this section, including
infarmarion about any other activities undertaken by or on behalf of the City to further the
objectives of the Vendor Outreach Program_ The report shall be available to Program
5ec. 84.11. Business development.
�- -. :: :: , :_ , ;, ; , :� : : : -
-- - :.: :,��� - . := � :: -- . : :: .: :�: •: � :, . .
.: -.� . :.. : - :: .:: . : -
@) Support for EDBs, MBEs and WBEs. The D'arector of the Department of Planning
and Economic Development shall undertake andlor facilitate any other activities to enhance the
viabllity of EDBs, MBEs and WBEs, in the marketplace that are authorized by law or
program. Such activities may include, but are not limited to, mentoring, technical assistance
programs, advocacy efforts, encouraging joint venture formation, collaboration with organized
labor, and providing financial assistance.
Sec. 84.12. Misdemeanor.
It shall be a misdemeanor for any person to furnish or to provide fraudulent or false
information for the purpose of gaining eligibility for, ar participation in, the Vendor Outreach
Program.
Sec. 84.13. Applicability of other laws.
Nothina in this ordinance should be consmzed to amend, modify, affect or repeal any
provision in any other ordinance or statute that would otherwise be applicable to EDBs, MBEs,
WBEs, or to any person, firm or corporation bidding on or garty to any contract with the Ciry
of Saint Paul.
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Secrion 2
The provisions of Chapter 81 of the Saint Paul Administrative Code, the Targeted
Vendor Development Program, are hereby repealed on the effective date of this ordinance.
Section 3
This ordinance shall take effect and be in force thlrty (30) days from and after its
passage, approval and publicarion.
pnR�teurn
SEP 2d 1997
Requested by Department o£:
By:
Fosm ov�d b� C' Attof.ey
B . �c �-��-��
Approved by Mayor for Submission to Council
By:
Apgx
By:
Adopted by Council: Date � _ ,S ., �,���
�—�
Adoption Certified by Covncil Secretasy
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DEPARTMENT FFICHCOUNCIL DATE INRIATED N� 318 8 5
1eG �,61 � �I� Se,�,v�e� �-z5 .g7 GREEN SHEET _ - -
CONTACTPERSON E INITI T INRIAUOA7E
DEPAHTMENT OIRECfOR � CITY CAUNCII
(I�f�fa.�Nt� p�«+N dCIT(ATfORNEY �CRYCLERK
MUST BE ON COUNCIL AGENDA BY (DATE) RUY „R�FOX ❑ BUDGET DIRECTOR FIN. & MGT. SEflVICES OIR.
ORCER Q ypYOR (OR ASSISTANn �
TOTAL # OF SIGtiATURE PAGES (CLIP ALL LOCATIONS FOR SICaNATUR�
ncnON nEOUESrEn:
,Q�,�.ioVC� o�— (�.�&.i.v�a.�CQ k,�o�,Cs�i v� � '�4.�m{' �ud`�1�.�
�,L�e�..�ti a.� v.9.�.� C, . $�-I- c.�- - t� �'t-`�c� `�1�.�v.��is��Q �db .
RECOMMENDn710N5: Approve (A) m Reject (A) pERSONAL SERVICE CONTRACTS MUST ANSWER THE POLLOWING �UE5710NS: N/�
_ PLANNING CAMMISSION _ CIVIL SEflVICE COMMISSION �� Hd51}1i5 pBfSOnfimt eVBt WOrketl untlef a CoMreCt fof thiS tlB(18fM18M? - �
_ CIB COMMITTEE _ YES NO
2. Has this person/firm ever been a city employee?
— ��` — VES NO
_ WSTRIC7 cOURT _ 3. Does Mis person/firm possess a skill not normalty possessed by any curreM city employee?
SUPPORTS WXICN COUNCII O&IECTNEt YES NO
Explain al� yes answers on separate sheet antl attach to green sheet
INITIATING PROBLEM, 1SSUE.OPPORTUNITV (Who. What, When. Where, Why):
ADVANTAGES IFAPPqOVEO:
°' �C� ���
JUN 2 6 i99�
DISADVANTAGESIFAPPROVED: °" � ��
DISADYqNTAGES IF NpT A7PqOVED:
TOTAI AMOUNT OF THANSACTION $ N ( �' COSTlREVENUE BUDGETEO (qRCLE ONE) YES � NO Nl�"
FUNDIHG SOURCE �(� ACTIVITV NUMBEH N � �
FINANCIAL �NFORMATION: (EXPLAIN)
�` � 8��afq;
Sugs��r�
Council File # � �
Ordinance #
Green Sheet 3 ;�
ORDINANCE
CITY OF SA11VT� PAUL, MINNESOTA 3 �
Presented By
Referred TO
An ordinance to enact the
Vendor Outreach Program
as new Chapter 84 of the
Saint Paul Administrative C�
. Date
BE IT ENACTED BY THE COUNCIL OF THE CITY/OF SAINT PAUL:
Section
The followang new Chapter 84 is hereb�nacted as part of the Saint Paul
Administrative Code:
Sec. 84.01. Declaration of Policy and
The ordinance is based on and sponds to the information and evidence of
discrimination against women and m' orities documented by the Study submitted by BBC
Reseazch & Consulting, September 995, to the City of Saint Paul. In doing so, this ordinance
is intended to remedy and correct e effects of past discrimination in construction, goods,
services and professional servic s whose effects sull burden small and minority-owned and
women-owned businesses in e City.
This ordinance wi help prevent future discrunination against vendors and contractors
who provide goods and ervices to the City, ar engage in the completion of construction
cornracts to which the ity is or shall be a party. It is intended to further discourage and
prevent discrnninati on account of race or gender.
It is the 13cy of the City both (a) to attempt to provide a remedy for past
underutilizatio of qualified minority- and women-owned businesses and economically
disadvantag small businesses, and (b) to prevent ongoing underutilization of such businesses
in the City' contracting process, by facilitating their participation as vendors to the City in its
purchase f goods, services, and construcrion of public buildings and publicly-assisted
project , and its various economic development activities.
The policy of the City is to promote 3ncreased participation by qualified, minority-
women-owned, and economically disadvantaged small businesses in public contracting
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(8) whether the reasonable and necessary requirements of the c
subcontracting or offier participation of business other than the
infeasible;
or proposer
(9) whether a public or administrarive emergency exists which equires the goods or
services, or construcuon or development project, to be delive ed or performed with
unusual iminediacy;
(10) whether the number of certified EDBs, MBEs or
required by the contract are so few as to render them
despite attempts to locate them; and /
providing the services
3ble in practical terms,
(11) whether the application of the provisions of s ordinance will impose an
mmwarranted risk on the City or unduly delay a uisition of the goods or services, or
completion of the construction or developmen project.
Sec. 84.07. Certification of businesses.
(a) Requirement,• two years. Any EDB, BE, or WBE ("such business" or "such
businesses" for the remainder of this section) hich seeks to participate in, or avail itself of the
benefits of, the Vendor Outreach Program, ust first be certified. Once certified, the
certification is valid for the following two alendar years, and thereafter, for two-year periods.
(b) Application. Such business 1 file an application with the Director, and provide
such information on such forms as th D'uector may reasonably require. The Director may
require information (1) that will es lish that such business meets and will continue to meet
the defuution of an EDB, MBE or BE, as the case may be, for the entire period of
certification, and (2) as to the av ' ability and qualifications of such business, the azeas of Ciry
vendor contracts or prnne cont cts such business seeks, and the number and dollar amount of
past City contracts it has bee a party to or participated as a subcontractor.
(c) Certification of nother jurisdiction. The Director may, in his or her sole discretion,
waive all or part of the plication process, and waive the submission of information required
thereunder, as to any s ch business which has been certified under a program substanually
similaz to the Vendor treach Program. The burden is on the applicant to furnish a copy of
the applicauon and pporting information from the other program, and to demonstrate to the
satisfaction of the irector that the guidelines and requirements of the other program are
substantially s' ' ar to those required under the Vendor Outreach Program.
(d) Jo' applications. The Director may cooperate with any other governmental entity
having a pr gram substantially similar to the Vendor Outreach Program in providing for a joint
or mutual acceptable application process.
e) No certification. The Director may determine not to certify an applicant if such
bus' ss sells a product ar service which the City, either itself or for another governmental
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comracts under its jurisdiction. These reports shall be filed with the Director of
and Management Services in accordance with established schedules.
(d) Repon of the director. The Director shall annually submit a report to the ayor and
City Council c��mmari�ing the information gathered pursuant to tYus section, incl ing
information about any other acUvities undertaken by or on behalf of the City to er the
objectives of the Vendor Ouueach Program. The report shall be available to ogram
participants and other interested parties.
Sec. 84.11. Business development.
(a) Bond assistance program authorized. The Director is
administer a program to assist certified EDBs, MBEs and WBEs
requirements that may apply to City contracts or projects. ,
(b) Support for EDBs, MBEs and WBEs. The D'u
and Economic Development shall undertake and/or facili
viabiliry of EDBs, MBEs and WBEs, in the marketplace
program. Such activities may include, but are not 1�
programs, advocacy efforts, encouraging joint ventur fc
labor, and providing fmancial assistance.
Sec. 84.12. Misdemeanor.
It shall be a misdemeanor for any
information for the purpose of gaining el
Program. ,
Sec. 84.13. Applicability of other
Nothing in tlus or
provision in any other or
WBEs, or to any person,
of Saint Paul.
to develop and
any bond
cto of ffie Deparhnent of Planning
� any other activities to enhance the
t are authorized by law or
to, mentoring, technical assistance
mation, collaboration with organized
to fiunish or to provide fraudulent or false
for, or participation in, the Vendor Outreach
� should be construed to amend, modify, affect or repeal any
;e or statute that would otherwise be applicable to EDBs, MBEs,
or corporation bidding on or party to any contract with the Ciry
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as,
Council File # � `1- Fr4o
ordinance #
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�������,f��
Presented By _�f�
Referred To l�
MINNESOTA
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SAINT PAUL:
Section 1
The following new Chapter 84 is hereby enacted as part of
the Saint Pau1 Administrative Code:
Sec. 84.01. Declaration of Policy and Purpose.
The ordinance is based on and responds to the information
and evidence of discrimination against women and minorities
documented by the Study submitted by BBC Research & Consulting,
September 1995, to the City of Saint Paul. In doing so, this
ordinance is intended to remedy and correct the effects of past
discrimination in construction, goods, services and professional
services whose effects still burden small and minority-owned and
women-owned businesses in the City of Saint Paul.
This ordinance will help prevent future discrimination
against vendors and contractors who provide goods and services to
the City of Saint Paul, or engage in the completion of
construction contracts to which the City is or shall be a party.
It is intended to further discourage and prevent discrimination
on account of race or gender.
It is the policy of the City of Saint Paul both (1? to
attempt to provide a remedy for past underutilization of
qualified minority- and women-owned businesses and economically
disadvantaged small businesses, and (2) to prevent ongoing
underutilization of such businesses in the City's contracting
process, by facilitating their participation as vendors to the
city in its purchase of goods, services, and construction of
public buildings and publicly-assisted projects, and its various
economic development activities.
Green Sheet # \���
��Iz�l�t
An ordinance to enact the
Vendor Outreach Program
as new Chapter 84 of the
Saint Paul Administrative Code.
ORfGI�V�L
�'1-�y o
The palicy of the City of Saint Paul is to provide a level
of participation by qualified, minority-owned, women-owned, and
economically disadvantaged small businesses in public contracting
that is comparable to their availability in the Saint Paul
marketplace. To this end, the City shall set annual benchmarks
or levels of participation for MBE, WBE, and economically
disadvantaged small business participation in City contracting
activities based upon their current availability within the
marketplace. These levels of participation shall not be quotas.
The levels that are established shall be reviewed every three
years, and the participation of such businesses shall be reviewed
every three years, to insure (1) that the program does seek no
more than to remedy the effects of past discrimination and
prevent future discrimination, and (2) that the program does not
become over time a race- or gender-based entitlement or quota
program.
Sec. 84.02. Short Title.
This ordinance and the program it enacts shall be cited as
the "Vendor Outreach Program."
Sec. 84.03. Definitions.
For purposes of this chapter, the following words and
phrases shall have the meanings set forth in this section, exaept
where the context clearly indicates that a different meaning is
intended.
`AffiZiate or subsidiary of a business dominant in its field
of operation" means a business that is at least twenty (20)
percent owned by a business dominant in its field of operation,
or by partners, officers, directors, majority stockholders, or
their equivalent, of a business dominant in that £ield of
operation.
NBroker° means a business that carries no inventory and that
has no written or oral ongoing agreement with any manufacturer or
manufacturer's authorized distributor to sell the products of the
manufacturer. This definition is not intended to include
businesses who actively use just-in-time methods in their normal
operation.
"Business, or business entity" means a contractor, vendor,
subcontractor, supplier, consultant, or provider of technical,
administrative, or physical services, regardless of whether
operating as an individual or organized as a sole proprietorship,
partnership, joint venture, association, cooperative,
corporation, or other entity which is organized for profit.
"Construction and development projects" means
(1)construction and development projects, (2) the construction,
alteration, painting or repair of a building or any structure on
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9�_��0
land, (3) any erection, building, alteration, reconstruction,
modernization or improvement of any structure, and (4) the
improvement of, or addition to, any capital asset.
'�irector" means the Director of the Division of Contract
and Analysis Services in the Department of Technology and
Management Services of the City of Saint Paul, together with such
designees or staff persons as he or she may direct to carry out
functions under this ordinance.
`yJOminant in its field of operation" means having more than
20 full-time employees and more than $1,000,000 in annual gross
revenues or $2,500,000 in annual gross revenues if a technical or
professional service.
"EDB, or Economically-disadvantaged small business" means a
business entity whose principal place of business is in the
marketplace and which has been in operation one (1) year or more
that:
(a) is not an affiliate or subsidiary of a business dominant
in its field of operation; and
(b) is not a broker, does not operate as a franchise or
under a franchise agreement, and is not a business in which
the owner is also owner or part owner of one or more
businesses; and
(c) is not a business whose average gross revenues for at
least three (3) of the past five (5) years exceeds sixty-
five (65) percent of the average adjusted gross revenues as
shown by its federal tax returns for the same three-year
period for its Standard Industrial Classification (SIC) code
as adjusted by the State of Minnesota pursuant to statute.
"Franchise, or franchised business" means a business
operated under an operating agreement obtained from a franchiser
to conduct a business where the franchiser retains the right to
(1) direct, or set requirements for, certain elements of the
business, or (2) receive compensation for use of the franchise or
the goodwill or business name.
"Goods and services" means and includes(1) materials,
supplies, equipment, all things which are movable, and all
tangible personal chattels, whether or not inCended or suitable
for becoming a fixture when attached to real property; (2) labor
and work; and (3) services of any kind, including consultant,
trade, technical, and professional services.
"Joint venture" means an association of two or more persons
or businesses to carry out a single business enterprise £or
pro£it for which purposes they combine their property, capital,
skills, knowledge and management in an agreed-to proportionate
share.
3 �� ��Z`�/�/
ORfGINAL
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"Manufacturer" means a business that makes or processes raw
materials into a finished product.
`�Ianufacturer's representative" means a business that has an
agreement with one (1) or more manufacturers or manufacturer's
authorized distributors to sell the products of the manufacturer,
but that is not an employee of the manufacturer.
"Marketplace" means the geographical area of the Minnesota
counties of Anoka, Benton, Carver, Chisago, Dakota, Aennepin,
Isanti, Ramsey, Scott, Sherburne, Stearns, Washington, and
Wright; and the Wisconsin counties of Pierce and St. Croix.
"Minority" means a citizen of the United States or lawfully
admitted permanent resident who is Asian-American, Native
American, African-American, or Hispanic.
"MBE, or minority business enterprise° means a qualified
business located in the marketplace or doing business in the
marketplace at the time of bid opening or solicitation a) which
is at least 51 percent owned by one or more minority persons, or,
in the case of any publicly owned business, at least 51 percent
of the stock is owned by one or more minority persons; and, b)
whose management and daily business operations are controlled by
one or more minority persons who own it.
"Prime, or prime contractor" means a business engaging in
construction and development projects by contractual agreement,
or in prime contracts, with the City of Saint Paul.
"Prime contract" means a contract with a prime contractor
for the completion of a construction and development project, as
to which it is reasonably likely that the prime contractor will
use, contract with, or seek bids from, one or more
subcontractors. A"construction and development project" for the
purpose of this definition includes a contract with a developer
or business for any construction and development project where
such developer or business receives public funds or the pledge or
guarantee thereof, or as to which project the City of Saint Paul,
the Housing and Redevelopment Authority of the City of St. Paul,
Minnesota, or other City agency or department, is or will be
obligated to provide financing, issue bonds or other
obligations, or any other assistance of any kind to or for such
project.
"SIC, or SSC Code" means the Standard Industrial
Classification code as promulgated and maintained by one or more
agencies or departments of the United States.
"Vendor" means a business selling goods and services to the
City of Saint Paul, as well as other services, including
construction and development projects for which there will be no
subcontracts.
4 ��3 �������
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"Vendor contract" means a contract with a vendor as to which
the vendor will not use, contract with, or seek bids from,
subcontractors.
"WBE, or women business enterprise" means a qualified
business concern located in the marketplace or doing business in
the marketplace at the time of bid opening or solicitation:
(a) which is at least 51 percent owned by one or more women,
or, in the case of any publicly owned business, at least 51
percent of the stock is owned by one or more women; and,
(b) whose management and daily business operations are
controlled by one or more women who own it.
Sec. 84.04. Applicability.
The provisions of this ordinance shall apply to all
contracts which are awarded by the City of Saint Paul, including
vendor contracts and prime contracts, except as may be
hereinafter specifically exempted, and shall be liberally
construed for the accomplishment of its policies and purposes.
Sec. 84.05. Administration.
(a) The Director shall direct and administer the Vendor
Outreach Program.
(b) The Director may contract with other governmental
agencies to administer programs for such other agencies which are
similar to the Vendor Outreach Program, provided that the City is
fully protected from liability and risk of loss arising out of
such contract or contracts. The Director may also contract with
nongovernmental agencies for the administration of all or part of
the Vendor Outreach Program.
(c) All departments and offices of the CiCy shall share in
the responsibility for accomplishing the policy and purposes of
the Vendor Outreach Program. The mayor may by administrative
order provide for additional activities and reports in
furtherance of said Program. In particular, the Director shall
work jointly with other city departments and offices to establish
levels of utilization of EDB's, MBE's and WBE�s in and for
professional services contracts and any other categories of
purchases that may help the City to accomplish the overall
purpose of the program.
See. 84.06. Establishment of Desired Levels of Participation.
(a) Annual Partici�ation. The Director shall establish, as
provided in this section, on an annual basis, the desired levels
of participation of EDB's, of MBE's and of WBE's in vendor
contracts and prime contracts for the next fiscal year, expressed
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as a percentage, for each, of the reasonably anticipated total
dollar amount of all such contracts. Such levels of participation
shall be adjusted, from time to time during the course of the
year as may be necessary, based on changes in the availability of
EDB's, MBE's and WBE's in the marketplace.
(b) Ad�ustments for individual �rime contracts. The Director
shall also establish andJor, where appropriate, modify levels of
participation by subcontractors, which may be more or less than
the annual levels established in subsection (a), for individual
prime contracts, taking into account the total dollars of the
contract and the dollars in the contract which may reasonably be
e�ected to be subcontracted. In setting such level of
participation, the Director shall also take into account and
remove from consideration those amounts and works under the
contract and subconCracts which cannot be performed or supplied
by subcontractors which are certified as eligible for
participation in the Vendor Outreach Program. Such levels of
participation shall be established by SIC Code where appropriate.
(c) Factors. In setting levels of participation of EDB's,
MBE's and WBE's, whether annually or for individual prime
contracts, the Director shall endeavor to arrive at the number of
such businesses (i) which are presently available in the
marketplace and which are qualified to do the particular work
required by the City contract, and (ii) which would reasonably be
expected by normal economic and business operation and market
forces to participate in such vendor contracts and prime
contracts, in the absence of present discrimination or the
effects of past discrimination.
The Director shall consider the following factors in
establishing levels of participation:
(1) the practical, as opposed to theoretical, availability
of EDB's, MBE's and WBE's ("such businesses" in this
subsection) in the marketplace;
(2) the particular goods and services, or construction or
development projects, for which such businesses are
available;
(3) the past levels of participation of such businesses in
city vendor contracts or as subcontractors in city prime
contracts;
(4) the reasonably anticipated number and amount and type of
city vendor contracts and subcontracting opportunities in
city prime contracts for the next (fiscal)(calendar) year;
(5) whether the reasonably anticipated contracts are for
goods or services, or construction contracts, for which
there are few or no such businesses available or quali£ied
to do the particular work, or to do subcontracts;
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(6) whether such businesses will be able to obtain necessary
bonds, insurance policies, and equipment or personnel
required to perform such city vendor contracts or
subcontracting on prime contracts;
(7) as to professional services, the 1evels of participation
that are established by other city departments and offices;
(8) whether the reasonable and necessary requirements of the
contract render subcontracting or other participation of
business other than the bidder or proposer infeasible;
(9) whether a public or administrative emergency exists
which requires the goods or services, or construction or
development project, to be delivered or performed with
unusual immediacy;
(10) whether the number of certified EDB's, MBE's or WBE's
providing the services required by the contract are so few
as to render them unavailable in practical terms, despite
attempts to locate them; and
(11) whether the application of the provisions of this
ordinance will impose an unwarranted risk on the City or
unduly delay acquisition of the goods or services, or
completion of the construction or development project.
Sec. 84.07. Certification of businesses.
(a) Reauirement: two years. Any EDB, MBE, or WBE ("such
business" or "such businesses" for the remainder of this section)
which seeks to participate in, or avail itself of the benefits
of, the Vendor Outreach Program, must first be certified. Once
certified, the certification is valid for the following two
calendar years, and thereafter for two-year periods.
(b) Abplication. Such business shall file an application
with the Director, and provicle such informaCion on such forms as
the Director may reasonably require. The Director may require
information (i) that will establish that such business meets and
will continue to meet the definition of an EDB, MBE or WBE, as
the case may be, for the entire period of certification, and (ii)
as to the availability and quali£ications of such business, the
areas of city vendor contracts or prime contracts such business
seeks, and the number and dollar amount of past city contracts it
has been a party to or participated as a subcontractor.
(c) Certification of another jurisdiction. The Director may
in his or her sole discretion waive all or part of the
application process, and waive the submission of information
required thereunder, as to any such business which has been
certified under a program substantially similar to the Vendor
Outreach Program. The burden is on the applicant to furnish a
copy of the application and supporting information from the other
program, and to demonstrate to the satisfaction of the Director
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that the guidelines and requirements of the other program are
substantially similar to those required under the Vendor Outreach
Program.
(d) Joint a�plications. The Director may cooperate with any
other governmental entity having a program substantially similar
to the Vendor Outreach Program in providing for a joint or
mutually acceptable application process.
(e) No certification. The Director may determine not to
certify an applicant if such business sells a product or service
which the City, either itself or for another governmental entity,
(i) has in the past either not purchased or purchases in very
limited amounts, or (ii) is not 1ikely to purchase in the
foreseeable future.
(f) Chancre in circumstances. If the Director determines that
any such business no longer meets the definition of EDB, MBE or
WBE, as the case may be, the Director may terminate the
certification of such business. Each such business which has been
certified is and remains under a continuing obligation to report
to the Director any change in circumstances affecting it that
would cause it not to meet the appropriate definition.
(g) Material misstatement of fact. If the Director
detercnines that any such business made a material misstatement of
fact in its application for certification or in any information
submitted in support of the application, wheCher intentional or
by mistake, the Director may determine either not to certify such
business for participation in the Vendor Outreach Program, or to
terminate the certification of such business if already granted.
(h) A� ep a1• Any such business whose application for
certification has not been granted, or whose certification has
been terminated, by the Director may appeal to the Director of
the Office of Technology and Management Services ("TMS
Director"). Such appeal shall be decided on written submission
and where appropriate in the discretion of the TMS Director, with
an informal conference of such business with the Director and his
or her staff.
(i) Rules. The Director may promulgate, without notice or
hearing, rules in conformity with this ordinance to further
provide procedures for certification applications, the specific
information required for applications, and any criteria for
evaluation of the applications.
(j) Periodic review. The certification for each such
business may be reviewed periodically by the Director to
determine that it continues to be eligible for certification and
meets the definitions of an EDB, MBE or WBE, as the case may be,
but such review shall take place at least every three years after
its initial certification. The Director may require each such
business which has been certified to submit all information
necessary to verify the continue eligibility of such business,
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and the failure of such a business shall automatically terminate
its eligibility to participate in the Vendor Outreach Program.
!k) Taraeted vendor develo�ment nroc�ram. A business which is
registered as a"targeted vendor" pursuant to Sec. 81.07, Saint
Paul Administrative Code, on the effective date of this ordinance
shall be certified as an EDB, MBE, or WBE, as the case may be,
and shall be included in the Vendor Outreach Program for a period
of six months following the effective date of this ordinance. The
Director shall notify all such targeted vendors of the provisions
of this ordinance. During such six month period, all such
targeted vendors which wish to be further certified shall make
request to be further certified in conformity with the
requirements of this subsection (j). Upon receipt of such a
request, the Director shall review any materials previously filed
to determine compliance with certification requirements. Where
current materials are insufficient to determine compliance,
additional materials may be requested. Any targeted vendors
failing to submit a request to continue, or failing to submit all
additional materials which may be requested by the Director, will
be terminated and will have to submit to a new certification
process.
Sec. 84.08. Prime contract bid requirements.
(a) Evidence o£ com�liance with bid documents. Each bidder
on a city prime contract is required to submit with its bid
documents evidence of its compliance with the requirements of the
Vendor Outreach Program, on such forms as the Director may
prescribe. Such forms may include a certification by the bidder
that the bidder will not use any subcontracts on the particular
job.
(b) Alternative Compliance. A bidder on a prime contract may
comply with the requirements of this ordinance in either of the
two following ways:
(1) Combliance with levels of partici�ation. If such a
bidder submits evidence with its prime contract bid
documents that it has already entered into binding contracts
with certified subcontractors whose contract dollar amounts
meet the levels of participation established for that prime
contract, it shall be deemed in compliance with such
Program. A subcontractor is certified for the purpose of
this subsection if it is certified before the award of the
contract. If such bidder submits the name of a proposed
subcontractor to satisfy this Program, and the subcontractor
is not certified before the award of the bid, the dollar
amount of that subcontract will not be counted in
determining the level of participation of certified EDB's,
MBE�s and WBE's, and the bid may be rejected as being
unresponsive if the bidder has not otherwise achieved
compliance under Sec. 84.08(b)(2) below. Bidders shall not
count toward the desired level of participation any
agreements with businesses that are not located within the
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marketplace or otherwise do not meet the guidelines as set
forth in this ordinance. The bidder may include £irst and
second tier subcontractors and suppliers as meeting the
desired levels of participation.
(2) Compliance with outreach rec�uirements. Such a
bidder may submit evidence (i) that it has complied with the
outreach requirements of the Vendor Outreach Program, and
(2) that it sought to enter into subcontracts with certified
EDB's, MBE�s and/or WBE�s who are willing and qualified to
do the work required by the particular subcontract. Such
evidence shall be submitted on such forms and meeting such
requirements as the Director may determine necessary to
establish that the bidder did comply fully and completely
with such outreach requirements. The presence of fraud,
misrepresentation, or intentional discrimination by the
bidder shall negate compliance with outreach requirements
hereunder.
(c) Outreach reauirements. The following steps are required
to be followed if the bidder on a prime contract wishes to comply
under the outreach requirements in Sec. 84.08(b)(2) above.
(1) List each possible subcontract opportunity in the prime
contract, indicating where possible the SIC Code of such
work.
(2) Obtain a current list of certified EDB's, MBE's and
WBE's from the Director, which list shall contain where
available the applicable SIC Code or Codes for such
businesses.
(3) Attend all pre-bid conferences to obtain information
about the Vendor Outreach Program, the levels of
participation of certified EDB's, MBE's and WBE's, and the
outreach requirements herein.
(4) Request assistance from minority and women community
organizations, minority and women contractor groups, or
other organizations that provide assistance to in the
recruitment and placement of EDB's, MBE�s or WBE's.
(5) Obtain a current list of minority and women publications
from the Director.
(6) Solicit bids from certified EDB's, MBE's and WBE's for
the subcontracts within the prime contract at least ten days
prior to bid opening by phone, advertisement in a local
paper and the relevant minority publications on the list
obtained from the Director, or other means specified by the
Director by written notice to the bidder. The bidder for the
prime contract must solicit bids from a minimum of 5 such
certified businesses for each subcontract within the prime
contract, by SIC Code where available and applicable. If the
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applicable certified list, using the SIC Code or Codes where
available, is five or fewer, such bidder must contact the
entire list.
(7) Provide plans and specifications or information
regarding the location of plans and specifications to
certified EDB's, MBE's or WBE`s.
(8) Where applicabl.e, advise and make efforts to assist
interested EDB's, MBE's and WBE's to obtain bonds, lines of
credit, or insurance required to perform the contract.
(9) Submit documentation if bids from certified EDB's, MBE's
or WBE's were rejected, giving the complete basis for the
rejection and evidence that the rejection was justified.
(10) Bidders on prime contracts who continuously list the
same certified EDB's, MBE�s and WBE's as having been
contacted and listed as unavailable, when contact has
previously been unsuccessful as a result of disconnected
phone numbers or returned mail, will not be deemed to be in
compliance with the outreach requirements.
Sec. 84.09. Vendor contract requirements.
(a) Director compliance. The Director shall, consistent with
applicable laws and statutes relating to competitive bidding and
awards of contracts to the lowest responsible bic3der, seek where
possible and lawful to award a portion of vendor contracts to
certified EDB's, MBE�s and WBE's, in accordance with the annual
levels of participation for such businesses established pursuant
to Sec. 84.06 above.
(b) Outreach rec�uirements. The Director shall engage in one
or more of the following outreach steps in order to achieve for
all City purchases and contracts that are vendor contracts the
level of participation that is sought herein.
(1) Solicit bids, proposals or quotations from certified
EDB's, MBE's and WBE`s for the vendor contracts prior to bid
opening by phone, advertisement in a local paper, or other
means.
(2) Provide plans and specifications or information
regarding the location of plans and specifications to
certified EDB's, MBE's or WBE's.
(c) Unmet levels of gartici�ation. In the event that the
number and dollar amount of vendor contracts awarded to EDB's,
MBE's and WBE�s does not rise to the levels of participation that
were established under Sec. 84.06 of this ordinance, the Director
shall re-examine the procedures used by the Director and other
city officials for the processing and award of contracts. Where
appropriate the Director may seek changes in such procedures by
ordinance or administrative order.
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Sec. 84.10. Monitoring and Reporting.
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(a) Ins.gection. The Director is hereby authorized to verify
that the certified EDB's, MBE's or WBE's working on any city
vendor contract or on any city prime contract are certified,
remain eligible and certified, actually performing the work, and
otherwise in compliance with the Vendor Outreach Program. Such
verification may be made by on-site inspection, requesting
written information from the bidder or the subcontractor, or by
such other means as may be reasonable.
(b) Access to records. Each certified EDB, MBE or WBE shall,
upon request of the Director, permit access during normal
business hours to its business work site, records, and files as
needed to determine conformance with Program requirements herein.
(c) Citv re�orts. Each city department and office shall
prepare reports documenting the levels of participation
established for professional service agreements for the
particular fiscal year, and the results of their efforts to meet
those goals. The Department of Planning and Economic Development
shall prepare reports documenting goals established for
development and other grant projects under its jurisdiction, and
the results of its efforts to meet those goals. The Division of
Contract and Analysis Services shall prepare similar reports for
those contracts under its jurisdiction. These reports shall be
filed with the Director of Technology and Management Services in
accordance with established schedules.
(d) Report of the director. The Director shall annually
prepare a report summarizing the information gathered pursuant to
this section, including information about any other activities
undertaken by or on behalf of the City to further the objectives
of the Venclor Outreach Program. The report shall be available to
Program participants and other interested parties.
Sec. 84.11. Business development.
(a) Bond assistance �rogram authorized. The Director is
authorized to develop and administer a program to asszst
certified EDB's, MBE�s and WBE's in meeting any bond requirements
that may apply to city contracts or projects.
(b) Sup�ort for ED$'s, MHE�s and wBE�s. The Director of the
Department of Planning and Economic Development shall undertake
and/or facilitate any other activities to enhance the viability
of EDB�s, MBEs and WBEs, in the marketplace that are authorized
by law or program. Such activities may include, but are not
limited to, mentoring, technical assistance programs, advocacy
efforts, encouraging joint venture formation, collaboration with
organized labor, and providing financial assistance.
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Sec. 84.12. Rules for administratioa of program.
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The Director may promulgate, without notice or hearing,
rules in conformity with this ordinance to further provide for
the administration of this Vendor Outreach Program. Such rules
shall not conflict with the provisions of the Program.
Sec. 84.13. Misdemeanor.
It shall be a misdemeanor for any person to furnish or to
provide fraudulent or false information for the purpose of
gaining eligibility to or participation in the Vendor Outreach
Program.
Sec. 84.14. Applicability of other laws.
Nothing in this ordinance should be construed to amend,
modify, affect or repeal any provision in any other ordinance or
statute that would otherwise be applicable to EDB's, MBE,s,
WBE,s, or to any person, firm or corporation bidding on or party
to any contract with the City of Saint Paul.
Section 2
The provisions of Chapter 81 of the Saint Paul
Administrative Code, the Targeted Vendor Development Program, are.
hereby repealed on the effective date of this ordinance.
Section 3
This ordinance shall take effect and be in force thirty (30) days
from and after its passage, approval and publication.
Requested by Department of:
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By:
Adopted by Council: Date
Adoption Certified by Council Secretary
sy:
Approved by Mayor: Date
Foxm Approved hy City Attomey
BY: �t�,Cu� � f�� �/��19�
Appro d by yor tor�sion to Council
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By:
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VENDOR OUTREACH PROGRAM
Summary of Ordinance
There are no major policy or substantive chan�es in the revised ordinance as compared to
the one that was distributed to council members. This ordinance implements the same program
that was described in staffbriefin�s. The latest draft ]ooks different because it has been
rearranged, definitions of terms have been added, and explanatory headin�s inserted where it
would help clarify the intent of the council.
This summary wil] highlight what the ordinance does, and where significant, any areas of
difference from the previous draft. Pa?e numbers refer to the attached revised draft.
0 Deciaration of policy. This has been expanded and makes clear that the Council is using
the support ofthe 1995 BBC Study for this ordinance. (pp. 1-2)
� Definitions. Existin� definitions have been clarified, and new tenns defined where
necessary. For example, the current definition of the Metropolitan Statistical Area as used
by the federai government, and adopted by Hennepin County and the City of Minneapolis
was incorporated in the definition of "marketplace." (p. 4) Also, definitions for "director"
(p. 3), "prime-contract" (p. 4), and - `vendor contracY' (p. 5) were added.
� "Level of participation." Section 84.06 ofthe ordinance uses the phrase `9eve1 of
participation," in )ieu ofthe term "�oals," so that it is clear that what the City seeks is a
desired ievel of participation of qualified and certified minority and �vomen businesses in
the city contracting and procurement processes. (pp. 5-7) Such levels are set on an
annualized basis (pp. 5-6), and also where appropriate for each contract lar�e enough to
have subcontractors (p. 6).
� How to set levels of p�rticipation. Section 84.06(c) lists the factors that must be used to
set the desired levels of participation for certified businesses. (pp. b-7)
� Certi6cation of businesses eligible to p�rticipate in the program. Section 84.07
groups together all the provisions relating to the certification process. (pp. 7-9)
0 Contracts which have subcontractors. This drafr separates the procedures for those
contracts which have or are reasonabiy likely to have subcontractors, from those which
are not likely to have subcontractors. See Section 84.08 (subcontractors) which deals with
"prime contracts" as defined (pp. 9-11); and Section 84.09 (no subcontractors) which are
referred to as "vendor contracts" (p. 11)
� Subcontracts. Contractors which have subs must either submit a bid which has
"certified" bnsinesses in an amount at ]east equal to the level of participation
established for ihem, or, in the aitemative submit evidence that they have fully
comptied with each ofthe procedures in Section 84.08(c). (pp. 10-1 I) The
requirement for the contractors is not a"good faith" effort but actuai and complete
q�.-84
compliance with the procedures listed.
F
� � Outreach requirements Following the "outreach requirements" will result in
obtaining levels of certified businesses that reach the desired level of participation.
(gp. IO-I1)
fl Contracts with no subs. Section 84.09 requires the Director seek the participation of
certified businesses in such contractin�, where that is consistent with existing laws
inciuding competitive bidding laws. Failure to reach those levels woutd require the
Director to re-examine City procedures, and su�est remedial changes. (p. 11)
� Inspection and reporting. Section 84.10 requires the Director to verify compliance, and
to report on how the Pro�ram is ��orkin�. (p. 12)
� Business support. Section 84.11 authorizes programs to support certified businesses in
additionai ways. (p. 12)
� A4iscellaneous. The remainder ofthe ordinance provides for administrative rules,
misdemeanor penalties for fraud, and a provision making ciear that no other ordinances
(other than the Targeted Vendor Program) are repealed or modified by this ordinance.
(p. 13)
0 Targeted vendor progr�m. It is repealed. (p. 13)
`s
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CITY OF SAINT PAUL
No�nn Coleman, Mayor
To:
From:
Date:
Re:
Couneil members
Martha Larson �
June 24, 1997
��
DEPAR7'MENT OF TECHNOLOGY AND
MANAGEMENT SERVICES �
Manha Larsnn, Dirccmr `{ 7 ' ���
290 Ciry HaU Telephone: 612-?66-8797
l5 W. Kellegg Boultvard Fn<similc: 6IZ-?66-8919
Saint Paul, Minnesora SS10?
Revised Ordinance - Vendor Outreach Program
As we have discussed with you in our briefin�s over the last week, attached is a revised
version of the proposed ordinance which wovtd enact the new Vendor Outreach Program
(as a replacement for the current Targeted Vendor Program). This draft of the ordinance
reflects the resvlts of the CAQ's revisions to the draft ori�inatly provided to yau in your
Disparity Study briefing packet as distributed on June 13. To assist in your review of the
new ordinance dra8, we have also attached a summary of the essentiai changes reflected in
the new version, as compared to the ori?inal.
If you have questions prior to the Council's discussion of this in your meeting tomorrow,
please don't hesitate to call me, or Peg Birk in the CAO.
Thaak you.
CC:
Peter Hames
Pe� Birk
Phil Byme
Paui McCioskey
Tyrone Terrill
Bonnie 7eilinek
Pameta t��heelock
Linda Camg
3ackie Hicks
�L
BE IT ENACTED BY THE COLTNCIL OF THE CITY OF SAINT PAUL:
5����r�
v /�� ( � 1 Council File # ��� ���
Ordinance #
A m��1, � -
Green Sheet # � �g � `
ORDINANCE
CITY OF SAINT PAUL, MINNESOTA
Presented
Referred
An ordinance to enact the
2 Vendor Outreach Program
3 as new Ctiapter 84 of the
4 Saint Paul Admiuistrative Code.
Section 1
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The following new Chapter 84 is hereby enacted as part of the Saint Paul
Administrative Code:
Sec. 84.01. Declaration of Policy and Purpose.
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The ordinance is based on and responds to the information and evidence of
discrimuiation against women and minorities documented by the Study submitted by BBC
Research & Consulting, September 1995, to the City of Saint Paul and the Study submitted by
the Insutute on Race and PovertX. February. 1996. to the Ciry of Saint Paul. In doing so, this
ordinance is intended to remedy and correct the effects of past discriminauon in construction,
goods, services and professional services whose effects still burden small and minority-owned
and women-owned basinesses in the City.
This ordinance will help prevent future discrimination against vendors and contractors
who provide goods and services to the City, or engage in the completion of construction
contracts to which the City is or shall be a party. It is intended to further discourage and
prevent discriuiination on account of race or gender.
It is the policy of the Ciry both (a) to attempt to provide a remedy for past
underutilization of qualified minority- and women-owned businesses and economically
disadvantaged small businesses, and (b) to prevent ongoing underutilizarion of such businesses
in the City's conuacting process, bp facilitating their participation as vendors to the City in its
purchase of goods, services, and construction of public buildings and pubiicly-assisted
projects, and its various economic development activities.
The policy of the City is to promote increased participation by qualified, minority-
owned, women-owned, and economically disadvantaged small businesses 3n public contracting �
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that is comparable to their availability in the Saint Paul marketplace. To this end, the Ciry
shall set annual benchmarks or levels of participation for MBE, VJBE, and economically
disadvantaged small business participation in City contracting activiries based upon their
current availability within the marketplace. These levels of participation shall not be quotas.
The levels that are established shall be reviewed every three years, and the participation of
such businesses shall be reviewed every three years, to insure (1) that the program does seek
no more than to remedy the effects of past discrimination and prevent future discrimination,
and (2) that the program does not become over time a race- ar gender-based entiflement or
quota program, nor become a limitation or cap on the participarion of qualified businesses.
Sec. 84.02. Short Title.
This ordinance and the program it enacts shall be cited as the "Vendor Qutreach
Program."
Sec. 84.03. Detinitions.
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.
`Affiliate or subsidiary of a business dominant in its field of operation" means a
business that is at least 20 percent owned by a business douiinant in its field of operation, or by
partners, officers, directors, majority stockholders, or their equivalent, of a business dominant
in that field of operafion.
`Broker"means a business that carries no inventory and that has no written or oral
ongoing agreement with any manufacturer or manufacturer's authorized distributor to sell the
products of the manufacturer. This definition is not intended to include businesses who
actively use just-in-time methods in their normal operation.
32 �usiness, or business entity "means a contractor, developer, vendor, subconuactor,
33 supplier, consultant, or provider of technical, administrative, or physical services, regardless
34 of whether operating as an individual or organized as a sole proprietorship, partnership,joint
35 venture, association, cooperative, corporation, or other entiry which is arganized for profit.
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"City °means the City of Saint Paul, Minnesota.
"Construction and development projects"means (a) construction and development
projects, (b) the construction, alteration, painting or repair of a building ar any struciure on
land, (c) any construction, building, alteration, reconstruction, modernization or improvement
of any structure, and (d) the improvement of, or addition to, any capital asset.
`Developer"means a business which contracts with or seeks to contract with the City
for any construction and development project in which the contractual documents therefor
provide that either the City or the Housing and Redevelopment Authoriry of the City of St.
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Paul, Minnesota, ("HRA") (a) will receive, at any time, legal or equitable tifle to the land, or
any building or strucnue thereon, which is part of such project, excluding fitle or property
interests to or for public rights-of-way for pedestrian or vehicle transit, ingress or egress, or
(b) is obligated to issue general obligarion bonds, or provide financing supported by a full faith
and credit pledge.
`Director"means the Director of the Division of Cornract and Analysis Sezvices in the
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Department of Technology and Management Services of the City, together with such designees
or staff persons as he or she may d'uect to carry out funcuons under this ordinance.
`Dominant in its fzeki of operation" means having more than 20 full-time employees and
more than $1,000,000 in annual gross revenues or $2,500,000 in annual gross revenues if a
technical or professional service.
`�'DB, or Economically-disadvantaged small business "means a business entity whose
principal place of business is in the marketplace and which has been in operation one year or
more that:
(a) is not a business dominant in its field of operation, nor an affiliate or subsidiary
thereof; and
(b) is not a broker, or a manufacturer's representative, does not operate as a franchise
or under a franchise agreement, and is not a business in which the owner is also owner
or part owner of one or more businesses; and
(c) is not a business whose average gross revenues for at least three (3) of the past five
years exceeds 65 percent of the average adjusted gross revenues as shown by its federal
tax returns for the same three-year period for its Standard Industrial Classification (SIC)
code as adjusted by the 3tate of Minnesota pursuant to statute.
`�ranchise, or franchised business"means a business operated under an operating
agreement obtained from a franchiser to conduct a business where the franchiser retains the
right to (1) direct, ar set requirements for, certain elements of the business, or (2) receive
compensation for use of the franchise or the goodwill or business name.
"Goods and services"means and includes (a� materials, supplies, equipment, all things
which are movable, and all tangible personal chattels, whether or not intended or suitable for
becoming a fixture when attached to real properry; @} labor and work; and (c) services of any
kind, including consultant, trade, technical, and professional services.
"Joint venture"means an association of two or more persons or businesses to carry out
a single business enterprise for profit for which purposes they combine their property, capital,
skills, knowledge and management in an agreed-to proportionate share.
"Manufacturer"means a business that makes or processes raw materials into a finished
product.
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`�lanufacturer's representative" means a business that has an agreement with one or
more manufacturers ar manufacturer's authorized distributors to sell the products of the
manufacturer, but that is not an employee of the manufacturer.
"Marketpluce"means the geographical area of the Minnesota counties of Anoka,
Benton, Carver, Chisago, Dakota, Hennepin, Isanri, Rawsey, Scott, Sherbume, Stearns,
Washington, and Wright; and the VJisconsin counties of Pierce and St. Croix.
"Minority"means a citizen of the United States or lawfully admitted permanent resident
who is Asian-American, Native American, African-American, or Hispanic.
"MBE, or minority-owned business enterprise"means a qualified business located in the
marketplace or doing business in the marketplace at the tune of bid opening or solicitation (a)
which is at least 51 percent owned by one or more miuoriry persons, or, in the case of any
publicly owned business, at least 51 percent of the stock is owned by one or more minoriry
persons; and, (b) whose management and daily business operations are controlled by one or
more minoriry persons who own it.
`Prime, or prime contractor"means a business engaging in construction and
development projects by contractual agreement, or in prime contracts, with the City. The terms
also include a developer who or which may enter into a contract with the City for a particular
construction and development project, and which necessarily contemplates that the developer
will also enter into other or fiu�ther contracts for the completion of the said project.
25 `Prime contract"means a contract with a prnne contractor for the completion of a
26 construction and development project, as to which it is reasonably likely that the prnne
27 contractor will use, contract with, or seek bids from, one or more subcontractors. A prime
28 contract also includes a contract with a developer, where such contract or the particular
29 "construction and development projecY' necessarily contemplates that the developer will enter
30 into other or further contracts for the completion of the project.
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"SIC'; or `�'IC Code"means the Standard Industrial Classification code as promulgated
and maintained by one or more agencies or departments of the United States, and includes any
code or system which replaces or succeeds the code in existence on July 1, 1997."SIC' or "5IC
Code" shall also include classification codes promulgated and maintained by the American
Institute of Architects or other arganizations concerned with contracting which, in the
discretion of the Director, are deemed more useful or suitable for carrying out the purposes of
this chapter.
"Vendor"means a business selling goods and services to the City, as well as other
services, including construcuon and development projects for which there will be no
subcontracts.
"[�endor contract"means a contract with a vendor as to which the vendor will not use,
contract with, or seek bids from, subcontractors.
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"WBE, or women-owned busfness enterprise °means a qualified business concern
2 located in the mazketplace or doin$ business in the marketplace at the time of bid opening or
3 solicitation (a) which is at least 51 percent owned by one or more women, or, in the case of
4 any publicly owned business, at least 51 percent of the stock is owned by one or more women;
5 and, (b) whose mauagement and daily business operations are controlled by one or more
6 women who own it.
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Sec. 84.04. Applicability.
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The provisions of this ordinance st�all apply ta all contracts which are awarded or
entered into by the City, including vendor contracts and prune contracts, except as may be
hereinafter specifically exempted, and sha11 be liberally construed for the accomplishment of its
policies and purposes. Any bid, as to which there is or has been a materiallack of compliance
with the requirements of this chapter 84 by any bidder, shall be deemed to be an unresponsive
bid, and such lack of wmpliance shall be a sufficient basis for the rejection of that bid by the
Directar. Every contract covered by this chapter, which is entered into without bidding, shall
include provisions which (a) obligate the prime contractor, developer and vendor to fully
comply with the applicable outreach requirements imposed in this chapter, (b) provide that
failure to so comply is a breach of such contract, and (c) provide remedies for such breach.
Sec. 84.05. Administration.
(a) The Director shall d'uect and administer the Vendor Outreach Program.
(b) The Director may contract with other governmental agencies to administer programs
for such other agencies which are similar to the Vendor Outreach Program, provided that the
City is fully protected from liabiliry and risk of loss arising out of such contract or contracts.
The Director may also contract with nongovernmental agencies far the administrauon of a11 or
part of ffie Vendor Outreach Program.
(c) All departments and o�ces of the Ciry shall share in the responsibility for
accomplishing the policy and purposes of the Vendor Outreach Program. The mayor may by
administrative order provide for additional activities and reports in furtherance of said
Program. In particular, the Director shall work jointly with other city deparrinents and offices
to establish levels of utilization of EDBs, MBEs and WBEs in and for professional services
contracts and any other categories of purchases that may help the City to accomplish the
overall purpose of the program.
Sec. 84.06. Establishment of Desired Leveis of Participation.
(a) Annual Participation. The Director shall establish, as provided in this section, on an
annual basis, the desired levels of participation of EDBs, of MBEs and of WBEs in vendor
contracts and prime contracts for the next fiscal year, expressed as a percentage, for each, of
the reasonably anucipated total dollar amount of all such contracts. Such levels of participation
shall be adjusted, from time to time during the course of the year as may be necessary, based
on changes in the availability of EDBs, MBEs and WBEs in the mazketplace.
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1 (b) Adjustments for individual prime contracts. The D'uectar shall also establish and{or,
2 where appropriate, modify levels of participation by subcontractors, which may be more or
3 less than the annual levels estahlished in subsection (a), for individual prime contracts, taking
4 into account the total dollars of the contract and the dollazs in the contract which may
5 reasonably be expected to be subcontracted. In setting such level of participation, the Director
6 shall also take into account and remove from consideration those amounts and works under the
7 contract and subcontracts which cannot be performed or supplied by subcontractors which are
S certified as eligible for participation in the Vendor Outreach Program. Such levels of
9 participation shall be established by SIC Code where appropriate, and the D'uector shall
1Q indicate which codes included within the definition of SIC Code are being used and for what
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purposes.
(c) Factors. In setting levels of participation of EDBs, MBEs and WBEs, whether
annually under subsection (a) above or for individual prnne contracts under subsection (b)
above, the Director shall endeavor to arrive at the number of such businesses (i) which are
currently available in the marketplace and which are qualified to do ffie particular work
required by the Ciry contract, and (ii) which would reasonably be expected by normal
economic and business operation and market forces to participate in such vendor contracts and
prime contracts, in the absence of present discrnnination or the effects of past discrunination.
The D'uectar shall consider the following factors in establishing levels of participation:
(1) the practical, as opposed to theoretical, availability of EDBs, MBEs and WBEs
("such businesses" in this subsection) in the marketplace;
(2) the particular goods and services, or construction or development projects, for
which such businesses are available;
(3) the past levels of participation of such businesses in City vendor contracts or as
subcontractors in city prime contracts;
(4) the reasonably anticipated number and amount and type of City vendor contracts
and subcontracting opportunities in City prime contracts for the next fiscal year;
(5) whether the reasonably anticipated contracts are for goods or services, or
construction contracts, for which there are few or no such businesses available or
qualified to do the particular work, or to do subcontracts;
(6) whether such businesses will be able to obtain necessary bonds, insurance policies,
and equipment or personnel required to perform such Ciry vendor contracts or
subcontracting on prime contracts;
(7) as to professional services, the levels of participation ffiat are established by other
Ciry departments and offices;
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(8) wheffier the reasonable and necessary requirements of the contract render
subcontracting or other participation of business other than the bidder or proposer
infeasible;
4 (9) whether a public or administrative emergency e�sts which requires the goods or
5 services, or construction or development project, to be delivered or performed with
6 unusual immediacy;
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(10) whether the number of certified EDBs, MBEs or WBEs providing the services
required by the contract are so few as to render them unavailable in practical terms,
despite attempts to locate them; and
(11) whether the application of the provisions of this ordinance will impose an
unwarranted risk on the City or unduly delay acquisition of the goods or services, or
completion of the construction or development project.
��2Zavailabilitv shall be construed as broadly as is lawful and reasonably�ossible in
order to effectuate the goals of this ordinance.
f13) and the Director shall develo.� and administer a�rogram to assist certified
businesses to obtain bondin�and insurance.
Sec. 84.07. Certi�cation of businesses.
(a) Requirement,• two years. Any EDB, MBE, or WBE ("such business" or "such
businesses" for the remainder of this section) which seeks to participate in, or avail itself of the
benefits of, the Vendor Outreach Program, must first be certified. Once certi�ed, the
certification is valid for the following two calendar years, and thereafter, for two-yeaz periods.
(b) Application. Such business sha11 file an application with the Director, and provide
such information on such forms as the Director may reasonably require. The Director may
require information (1) that will establish that such business meets and will continue to meet
the defuution of an EDB, MBE or WBE, as the case may be, for the entire period of
certification, and (2) as to the availability and qualifications of such business, the areas of City
vendor contracts or prime contracts such business seeks, and the number and dollar amount of
past City contracts it has been a parry to or participated as a subcontractor.
(c) Cenifzcation of another jurisdiction. The Director may, in his or her sole discretion,
waive all or part of the application process, and waive the submission of information required
thereunder, as to any such business which has been certiFied under a program substautially
sunilar to the Vendor Outreach Program. The burden is on the applicant to furnish a copy of
the application and supporting information from the other program, and to demonstrate to the
satisfaction of the Director that the guidelines and requirements of the other program are
substantially similar to those required under the Vendor Outreach Program.
(d) Joint applications. The Director may cooperate with any other govemmental entiry
having a program substanfially similar to the Vendor Outreach Program in providing for a joint
or mutually acceptable application process.
(e) No certification. The Director may deternune not to certify an applicant if such
business sells a product or service which ffie City, either itself or for another govermnental
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entiry, (1) has in the past either not purchased or purchases in very limited amounts, or (2) is
not likely to purchase in the foreseeable future.
4 (fl Change in circumstances. If the D'uector determines that any such business no
5 longer meets the flefinition of EDB, MBE or WBE, as the case may be, the Direcior may
6 tenrunate the certification of such business. Each such business, which has been certified is
7 and remains under a continuing obligarion to report to the Director any change in
8 circumstances affecting it that would cause it not to meet the appropriate defuution.
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(g) Material misstatement of fact. If the Director detern�ines that any such business
made a material misstatement of fact in its application for certification or in any information
submitted in support of the application, whether intentional or by mistake, the Director may
determine either not to certify such business for participation in the Vendor Outreach Program,
or to ternunate the certification of such business if already granted.
(h) Appeal. Any such business whose application for certification has not been granted,
or whose certification has been terminated, by the Director may appeal to the Director of the
Office of Technology and Management Services (°TMS Director"). Such appeal shail be
decided on written submission and where appropriate in the discretion of the TMS Director,
with an informal conference of such business with the Director and his or her staff.
(i) Periodic review. The certification for each such business may be reviewed
periodically by the Director to deternune that it continues to be eligible for certification and
meets the definitions of an EDB, MBE or WBE, as the case may be, but such review shall take
place at least every two years after its initial certification. The Director may reguire each such
business which has been certified to submit all information necessary to verify the continued
eligibility of such business, and the failure of such a business shall automatically terminate its
eligibiliry to participate in the Vendor Outreach Program.
(i) Targeted vendor development program. A business which is registered as a"targeted
vendor" pursuant to Sea 81.07, Saint Paul Adi7iinistrative Code, on the effective date of this
ordinance shall be certified as an EDB, MBE, or WBE, as the case may be, and shall be
included in the Vendor Outreach Program far a period of six months following the effective
date of this ordinance. The Director shall norify all such targeted vendors of the provisions of
tlus ordinance. During such six month period, all such targeted vendors which wish to be
fiirther certified shall make request to be further certified in confornuty with the requirements
of this subsection (j). Upon receipt of such a request, the Director shall review any materials
previously filed to determine compliance with certification requirements. Where current
materials are insufficient to determine compliance, additional materials may be requested. Any
targeted vendors failing to submit a request to continue, or failing to submit all additional
materials which may be requested by the Director, will be tenninated and will have to submit
to a new certification process.
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5ec. 84.08. Prime coutract bid requirements.
3 (a) Evidence of compliance with bid documents. Each apparent low bidder on a ciry
4 prime contract is required to submit, before the bid is awarded to it, evidence of its compliance
5 with the requirements of the Vendor Outreach Progtam, on such forms as the Director may
6 prescribe. Such forms may include a certification by the bidder that the bidder will not use anp
7 subcontracts on the particular job. S�ch evidence shall be submitted after the opening of ffie
8 bids, and on or before a date to be established by the Director, but in no case after the tenth
9 day following the opening of such bids.
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@) Compliance with outreach requirements. S�ch a bidder shall submit evidence (1)
that it has complied with the outreach requirements of the Vendor Outreach Program specified
in subsection (c) in this Section 84.08, and (2) that it sought to enter nrto subcontracts with
certified EDBs, MBEs andlor WBEs who aze willing and qualified to do the work required by
the particular subcontract. Such evidence shall be submitted on such forms and meeting such
requirements as the Director may determine necessary to establish that the bidder did comply
fully and completely with such outreach requirements. The presence of fraud,
misrepresentauon, or intenuonal discriinination by the bidder shall negate compliance with
outreach requirements hereunder.
(c) Outreach requirements. The following steps are required for compliance with the
outreach requirements of the Vendor Outreach Program in this SecUOn 84.08.
(1) List each possible subcontract opportuniry in the prime contract, indicating where
possible the SIC Code of such wark, seeking the assistauce of the Director in
ascertaining such subcontract opportunities.
(2) Obtain a current list of certified EDBs, MBEs and WBEs from the Director, which
list shall contain where available the applicable SIC Code ar Codes for such businesses.
(3) Attend all pre-bid conferences to abtain information about the Vendar Outreach
Program, the levels of participation of certified EDBs, MBEs and WBEs, and the
outreach requirements herein.
(4) Request assistance from minarity and women community organizations, minority
and women contractor groups, or other organizations that provide assistance to in the
recruitment and placement of EDBs, MBEs or WBEs.
(5) Obtain a current list of minoriry and women publications from the Director.
(6) Solicit bids from certified EDBs, MBEs and WBEs, which have been idenfified by
the Director in consultauon with the bidder as being available and capable of
performing the necessary work, far the subcontracts within the prime contract at least
ten days prior to bid opening, by ghone, advertisement in a local paper and the relevant
minority publications on the list obtained from the Director, or other means specified
by the Director, by written notice to the bidder. The bidder for the prime conuact must
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soficit bids from a minimum of five such certified businesses for each subcontract
2 withiu the prime contract, by SIC Code where available and applicable. If the
3 applicable cer[ified list, using the SIC Code or Codes where available, is five or fewer,
4 such bidder must contact the entire list.
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6 (7) Provide plans and spe�ifications or information regarding the location of plans and
7 spec�carions to certified EDBs, MBEs or VJBEs.
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(8) Where applicable, advise and make efforts to assist interested EDBs, MBEs and
WBEs to obtain bonds, lines of credit, or insurance required to perform the contract.
(9) Submit documentation if bids from certified EDBs, MBEs or WBEs were rejected,
giving the complete basis for the rejection and evidence that the rejection was justified.
(10) Bidders on prime contracts who continuously list the same certified EDBs, MBEs
and FVBEs as having been contacted and listed as unavailable, when contact has
previously been unsuccessful as a result of disconnected phone numbers or returned
mail, will not be deemed to be in compliance with the outreach requirements.
(d) Alternative compliance. Notwithstanding the foregoing, a bidder on a prime contract
shall be deemed to have complied with the above outreach requirements of the Vendar
Outreach Program, if such a bidder submits evidence with its prime contract bid documents
that it has already entered into binding contracts with certified subcontractors whose contract
dollar amounts meet the levels of participation established for that prime contract. A
subcontractor is certified for the purpose of this subsection if it is certified before the award of
the contract. If such bidder submits the name of a proposed subcontractor to satisfy this
Program, and the subcontractor is not certified before the award of the bid, the dollar amount
of tltat subcontract will not be couuted in determining the level of participation of certified
EDBs, MBEs and WBEs, and the bid may be rejected as being unresponsive if the bidder has
not otherwise complied with the above outreach requirements of the Vendor Outreach Program
as required by this Section 84.08. Bidders shall not count toward the desired level of
participation any agreements with businesses that are not located within the marketplace or
otherwise do not meet the guidelines as set forth in this ordinance. The bidder may include
first and second tier subcontractors and suppliers as meeting the desired levels of participation.
Sec. 84.09. Vendor contract requiremeuts.
(a) Director compliance. The Director shall, consistent with applicable laws and
statutes relating to competitive bidding and awards of contracts to the lowest responsible
bidder, seek where possible and lawful to award a portion of vendor contracts to certified
EDBs, MBEs and WBEs, in accordance with the annual levels of participation for such
businesses established pursuantto Sec. 84.06 above.
(b) Outreach requirements. The D'uector shall engage in one or more of the following
outreach steps in order to achieve the desired level of garticipation for all Ciry vendor
contracts:
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(1) Solicit bids, proposals or quotations from certified EDBs, MBEs and WBEs for ihe
vendor contracts grior to bid opening by phone, advertisement in a local paper, or other
means.
(2) Provide plans and specifications or information regarding the location of plans and
specifications to certified EDBs, MBEs or WBFs.
(3) Request assistance from minority and women community organizations, minority
and women contractor groups, or other organizations that provide assistance to such
minoriry and women contractor groups in the recruitment and placement of EDBs,
MBEs or WBEs.
(4) Where applicable, advise and make efforts to assist interested EDBs, MBEs and
WBEs to obtain bonds, lines of credit, or insurance required to perform the contract.
(5) Prepare and maintain documentation if bids from certified EDBs, MBEs or WBEs
were rejected, giving the complete basis for the rejection and evidence that the rejection
was justified.
(c) Unmet Zevels of participation. In the event that the number and dollar amount of
vendor contracts awarded to EDBs, MBEs and WBEs does not rise to the levels of
participation that were established under Sec. 84.06 of this ordinance, the Director shall re-
examine the procedures ased by the Director and other City o�cials for the processing and
award of contracts. VJhere appropriate, the Director may seek changes in such procedures by
ordinance or administrative order.
Sec. 84.10. Monitoring and Reporting.
(a) Inspection. The Director is hereby authorized to verify that the certified EDBs,
MBEs or WBEs working on any City vendor contract or on any City prime contract are
certified, remain eligible and certified, actually performing the work, and otherwise in
compliance with the Vendor Outreach Program. Such verification may be made by on-site
inspection, requesting written information from the bidder or the subcontractor, or by such
other means as may be reasonable.
(b) Access to records. Each certified EDB, MBE or WBE shall, upon request of the
Director, permit access during normal business hours to its business wark site, records, and
fIles as needed to determine conformance with Program requirements herein.
(c) City reports. Each City department and office shall prepare reports documenting the
levels of participation established for professional service agreements for the particular fiscal
year, and the results of their efforts to meet those goals. The Deparnnent of Planning and
Economic Development shall prepare reports documenting goals established for development
and other grant projects under its jurisdiction, and the results of its efforts to meet those goals.
The Divlsion of Contract and Analysis Services shall prepaze similar reports for those
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contracts under its jurisdiction. These reports shall be filed with the Director of Technolagy
and Management Services in accordance with established schedules.
participants and other interested parties.
(d) Report of the director. The Director shall annually submit a report to the Mayor and
City Council summarizing the information gathered pursuant to this section, including
infarmarion about any other activities undertaken by or on behalf of the City to further the
objectives of the Vendor Outreach Program_ The report shall be available to Program
5ec. 84.11. Business development.
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@) Support for EDBs, MBEs and WBEs. The D'arector of the Department of Planning
and Economic Development shall undertake andlor facilitate any other activities to enhance the
viabllity of EDBs, MBEs and WBEs, in the marketplace that are authorized by law or
program. Such activities may include, but are not limited to, mentoring, technical assistance
programs, advocacy efforts, encouraging joint venture formation, collaboration with organized
labor, and providing financial assistance.
Sec. 84.12. Misdemeanor.
It shall be a misdemeanor for any person to furnish or to provide fraudulent or false
information for the purpose of gaining eligibility for, ar participation in, the Vendor Outreach
Program.
Sec. 84.13. Applicability of other laws.
Nothina in this ordinance should be consmzed to amend, modify, affect or repeal any
provision in any other ordinance or statute that would otherwise be applicable to EDBs, MBEs,
WBEs, or to any person, firm or corporation bidding on or garty to any contract with the Ciry
of Saint Paul.
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Secrion 2
The provisions of Chapter 81 of the Saint Paul Administrative Code, the Targeted
Vendor Development Program, are hereby repealed on the effective date of this ordinance.
Section 3
This ordinance shall take effect and be in force thlrty (30) days from and after its
passage, approval and publicarion.
pnR�teurn
SEP 2d 1997
Requested by Department o£:
By:
Fosm ov�d b� C' Attof.ey
B . �c �-��-��
Approved by Mayor for Submission to Council
By:
Apgx
By:
Adopted by Council: Date � _ ,S ., �,���
�—�
Adoption Certified by Covncil Secretasy
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DEPARTMENT FFICHCOUNCIL DATE INRIATED N� 318 8 5
1eG �,61 � �I� Se,�,v�e� �-z5 .g7 GREEN SHEET _ - -
CONTACTPERSON E INITI T INRIAUOA7E
DEPAHTMENT OIRECfOR � CITY CAUNCII
(I�f�fa.�Nt� p�«+N dCIT(ATfORNEY �CRYCLERK
MUST BE ON COUNCIL AGENDA BY (DATE) RUY „R�FOX ❑ BUDGET DIRECTOR FIN. & MGT. SEflVICES OIR.
ORCER Q ypYOR (OR ASSISTANn �
TOTAL # OF SIGtiATURE PAGES (CLIP ALL LOCATIONS FOR SICaNATUR�
ncnON nEOUESrEn:
,Q�,�.ioVC� o�— (�.�&.i.v�a.�CQ k,�o�,Cs�i v� � '�4.�m{' �ud`�1�.�
�,L�e�..�ti a.� v.9.�.� C, . $�-I- c.�- - t� �'t-`�c� `�1�.�v.��is��Q �db .
RECOMMENDn710N5: Approve (A) m Reject (A) pERSONAL SERVICE CONTRACTS MUST ANSWER THE POLLOWING �UE5710NS: N/�
_ PLANNING CAMMISSION _ CIVIL SEflVICE COMMISSION �� Hd51}1i5 pBfSOnfimt eVBt WOrketl untlef a CoMreCt fof thiS tlB(18fM18M? - �
_ CIB COMMITTEE _ YES NO
2. Has this person/firm ever been a city employee?
— ��` — VES NO
_ WSTRIC7 cOURT _ 3. Does Mis person/firm possess a skill not normalty possessed by any curreM city employee?
SUPPORTS WXICN COUNCII O&IECTNEt YES NO
Explain al� yes answers on separate sheet antl attach to green sheet
INITIATING PROBLEM, 1SSUE.OPPORTUNITV (Who. What, When. Where, Why):
ADVANTAGES IFAPPqOVEO:
°' �C� ���
JUN 2 6 i99�
DISADVANTAGESIFAPPROVED: °" � ��
DISADYqNTAGES IF NpT A7PqOVED:
TOTAI AMOUNT OF THANSACTION $ N ( �' COSTlREVENUE BUDGETEO (qRCLE ONE) YES � NO Nl�"
FUNDIHG SOURCE �(� ACTIVITV NUMBEH N � �
FINANCIAL �NFORMATION: (EXPLAIN)
�` � 8��afq;
Sugs��r�
Council File # � �
Ordinance #
Green Sheet 3 ;�
ORDINANCE
CITY OF SA11VT� PAUL, MINNESOTA 3 �
Presented By
Referred TO
An ordinance to enact the
Vendor Outreach Program
as new Chapter 84 of the
Saint Paul Administrative C�
. Date
BE IT ENACTED BY THE COUNCIL OF THE CITY/OF SAINT PAUL:
Section
The followang new Chapter 84 is hereb�nacted as part of the Saint Paul
Administrative Code:
Sec. 84.01. Declaration of Policy and
The ordinance is based on and sponds to the information and evidence of
discrimination against women and m' orities documented by the Study submitted by BBC
Reseazch & Consulting, September 995, to the City of Saint Paul. In doing so, this ordinance
is intended to remedy and correct e effects of past discrimination in construction, goods,
services and professional servic s whose effects sull burden small and minority-owned and
women-owned businesses in e City.
This ordinance wi help prevent future discrunination against vendors and contractors
who provide goods and ervices to the City, ar engage in the completion of construction
cornracts to which the ity is or shall be a party. It is intended to further discourage and
prevent discrnninati on account of race or gender.
It is the 13cy of the City both (a) to attempt to provide a remedy for past
underutilizatio of qualified minority- and women-owned businesses and economically
disadvantag small businesses, and (b) to prevent ongoing underutilization of such businesses
in the City' contracting process, by facilitating their participation as vendors to the City in its
purchase f goods, services, and construcrion of public buildings and publicly-assisted
project , and its various economic development activities.
The policy of the City is to promote 3ncreased participation by qualified, minority-
women-owned, and economically disadvantaged small businesses in public contracting
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(8) whether the reasonable and necessary requirements of the c
subcontracting or offier participation of business other than the
infeasible;
or proposer
(9) whether a public or administrarive emergency exists which equires the goods or
services, or construcuon or development project, to be delive ed or performed with
unusual iminediacy;
(10) whether the number of certified EDBs, MBEs or
required by the contract are so few as to render them
despite attempts to locate them; and /
providing the services
3ble in practical terms,
(11) whether the application of the provisions of s ordinance will impose an
mmwarranted risk on the City or unduly delay a uisition of the goods or services, or
completion of the construction or developmen project.
Sec. 84.07. Certification of businesses.
(a) Requirement,• two years. Any EDB, BE, or WBE ("such business" or "such
businesses" for the remainder of this section) hich seeks to participate in, or avail itself of the
benefits of, the Vendor Outreach Program, ust first be certified. Once certified, the
certification is valid for the following two alendar years, and thereafter, for two-year periods.
(b) Application. Such business 1 file an application with the Director, and provide
such information on such forms as th D'uector may reasonably require. The Director may
require information (1) that will es lish that such business meets and will continue to meet
the defuution of an EDB, MBE or BE, as the case may be, for the entire period of
certification, and (2) as to the av ' ability and qualifications of such business, the azeas of Ciry
vendor contracts or prnne cont cts such business seeks, and the number and dollar amount of
past City contracts it has bee a party to or participated as a subcontractor.
(c) Certification of nother jurisdiction. The Director may, in his or her sole discretion,
waive all or part of the plication process, and waive the submission of information required
thereunder, as to any s ch business which has been certified under a program substanually
similaz to the Vendor treach Program. The burden is on the applicant to furnish a copy of
the applicauon and pporting information from the other program, and to demonstrate to the
satisfaction of the irector that the guidelines and requirements of the other program are
substantially s' ' ar to those required under the Vendor Outreach Program.
(d) Jo' applications. The Director may cooperate with any other governmental entity
having a pr gram substantially similar to the Vendor Outreach Program in providing for a joint
or mutual acceptable application process.
e) No certification. The Director may determine not to certify an applicant if such
bus' ss sells a product ar service which the City, either itself or for another governmental
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comracts under its jurisdiction. These reports shall be filed with the Director of
and Management Services in accordance with established schedules.
(d) Repon of the director. The Director shall annually submit a report to the ayor and
City Council c��mmari�ing the information gathered pursuant to tYus section, incl ing
information about any other acUvities undertaken by or on behalf of the City to er the
objectives of the Vendor Ouueach Program. The report shall be available to ogram
participants and other interested parties.
Sec. 84.11. Business development.
(a) Bond assistance program authorized. The Director is
administer a program to assist certified EDBs, MBEs and WBEs
requirements that may apply to City contracts or projects. ,
(b) Support for EDBs, MBEs and WBEs. The D'u
and Economic Development shall undertake and/or facili
viabiliry of EDBs, MBEs and WBEs, in the marketplace
program. Such activities may include, but are not 1�
programs, advocacy efforts, encouraging joint ventur fc
labor, and providing fmancial assistance.
Sec. 84.12. Misdemeanor.
It shall be a misdemeanor for any
information for the purpose of gaining el
Program. ,
Sec. 84.13. Applicability of other
Nothing in tlus or
provision in any other or
WBEs, or to any person,
of Saint Paul.
to develop and
any bond
cto of ffie Deparhnent of Planning
� any other activities to enhance the
t are authorized by law or
to, mentoring, technical assistance
mation, collaboration with organized
to fiunish or to provide fraudulent or false
for, or participation in, the Vendor Outreach
� should be construed to amend, modify, affect or repeal any
;e or statute that would otherwise be applicable to EDBs, MBEs,
or corporation bidding on or party to any contract with the Ciry
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ordinance #
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Presented By _�f�
Referred To l�
MINNESOTA
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SAINT PAUL:
Section 1
The following new Chapter 84 is hereby enacted as part of
the Saint Pau1 Administrative Code:
Sec. 84.01. Declaration of Policy and Purpose.
The ordinance is based on and responds to the information
and evidence of discrimination against women and minorities
documented by the Study submitted by BBC Research & Consulting,
September 1995, to the City of Saint Paul. In doing so, this
ordinance is intended to remedy and correct the effects of past
discrimination in construction, goods, services and professional
services whose effects still burden small and minority-owned and
women-owned businesses in the City of Saint Paul.
This ordinance will help prevent future discrimination
against vendors and contractors who provide goods and services to
the City of Saint Paul, or engage in the completion of
construction contracts to which the City is or shall be a party.
It is intended to further discourage and prevent discrimination
on account of race or gender.
It is the policy of the City of Saint Paul both (1? to
attempt to provide a remedy for past underutilization of
qualified minority- and women-owned businesses and economically
disadvantaged small businesses, and (2) to prevent ongoing
underutilization of such businesses in the City's contracting
process, by facilitating their participation as vendors to the
city in its purchase of goods, services, and construction of
public buildings and publicly-assisted projects, and its various
economic development activities.
Green Sheet # \���
��Iz�l�t
An ordinance to enact the
Vendor Outreach Program
as new Chapter 84 of the
Saint Paul Administrative Code.
ORfGI�V�L
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The palicy of the City of Saint Paul is to provide a level
of participation by qualified, minority-owned, women-owned, and
economically disadvantaged small businesses in public contracting
that is comparable to their availability in the Saint Paul
marketplace. To this end, the City shall set annual benchmarks
or levels of participation for MBE, WBE, and economically
disadvantaged small business participation in City contracting
activities based upon their current availability within the
marketplace. These levels of participation shall not be quotas.
The levels that are established shall be reviewed every three
years, and the participation of such businesses shall be reviewed
every three years, to insure (1) that the program does seek no
more than to remedy the effects of past discrimination and
prevent future discrimination, and (2) that the program does not
become over time a race- or gender-based entitlement or quota
program.
Sec. 84.02. Short Title.
This ordinance and the program it enacts shall be cited as
the "Vendor Outreach Program."
Sec. 84.03. Definitions.
For purposes of this chapter, the following words and
phrases shall have the meanings set forth in this section, exaept
where the context clearly indicates that a different meaning is
intended.
`AffiZiate or subsidiary of a business dominant in its field
of operation" means a business that is at least twenty (20)
percent owned by a business dominant in its field of operation,
or by partners, officers, directors, majority stockholders, or
their equivalent, of a business dominant in that £ield of
operation.
NBroker° means a business that carries no inventory and that
has no written or oral ongoing agreement with any manufacturer or
manufacturer's authorized distributor to sell the products of the
manufacturer. This definition is not intended to include
businesses who actively use just-in-time methods in their normal
operation.
"Business, or business entity" means a contractor, vendor,
subcontractor, supplier, consultant, or provider of technical,
administrative, or physical services, regardless of whether
operating as an individual or organized as a sole proprietorship,
partnership, joint venture, association, cooperative,
corporation, or other entity which is organized for profit.
"Construction and development projects" means
(1)construction and development projects, (2) the construction,
alteration, painting or repair of a building or any structure on
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land, (3) any erection, building, alteration, reconstruction,
modernization or improvement of any structure, and (4) the
improvement of, or addition to, any capital asset.
'�irector" means the Director of the Division of Contract
and Analysis Services in the Department of Technology and
Management Services of the City of Saint Paul, together with such
designees or staff persons as he or she may direct to carry out
functions under this ordinance.
`yJOminant in its field of operation" means having more than
20 full-time employees and more than $1,000,000 in annual gross
revenues or $2,500,000 in annual gross revenues if a technical or
professional service.
"EDB, or Economically-disadvantaged small business" means a
business entity whose principal place of business is in the
marketplace and which has been in operation one (1) year or more
that:
(a) is not an affiliate or subsidiary of a business dominant
in its field of operation; and
(b) is not a broker, does not operate as a franchise or
under a franchise agreement, and is not a business in which
the owner is also owner or part owner of one or more
businesses; and
(c) is not a business whose average gross revenues for at
least three (3) of the past five (5) years exceeds sixty-
five (65) percent of the average adjusted gross revenues as
shown by its federal tax returns for the same three-year
period for its Standard Industrial Classification (SIC) code
as adjusted by the State of Minnesota pursuant to statute.
"Franchise, or franchised business" means a business
operated under an operating agreement obtained from a franchiser
to conduct a business where the franchiser retains the right to
(1) direct, or set requirements for, certain elements of the
business, or (2) receive compensation for use of the franchise or
the goodwill or business name.
"Goods and services" means and includes(1) materials,
supplies, equipment, all things which are movable, and all
tangible personal chattels, whether or not inCended or suitable
for becoming a fixture when attached to real property; (2) labor
and work; and (3) services of any kind, including consultant,
trade, technical, and professional services.
"Joint venture" means an association of two or more persons
or businesses to carry out a single business enterprise £or
pro£it for which purposes they combine their property, capital,
skills, knowledge and management in an agreed-to proportionate
share.
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"Manufacturer" means a business that makes or processes raw
materials into a finished product.
`�Ianufacturer's representative" means a business that has an
agreement with one (1) or more manufacturers or manufacturer's
authorized distributors to sell the products of the manufacturer,
but that is not an employee of the manufacturer.
"Marketplace" means the geographical area of the Minnesota
counties of Anoka, Benton, Carver, Chisago, Dakota, Aennepin,
Isanti, Ramsey, Scott, Sherburne, Stearns, Washington, and
Wright; and the Wisconsin counties of Pierce and St. Croix.
"Minority" means a citizen of the United States or lawfully
admitted permanent resident who is Asian-American, Native
American, African-American, or Hispanic.
"MBE, or minority business enterprise° means a qualified
business located in the marketplace or doing business in the
marketplace at the time of bid opening or solicitation a) which
is at least 51 percent owned by one or more minority persons, or,
in the case of any publicly owned business, at least 51 percent
of the stock is owned by one or more minority persons; and, b)
whose management and daily business operations are controlled by
one or more minority persons who own it.
"Prime, or prime contractor" means a business engaging in
construction and development projects by contractual agreement,
or in prime contracts, with the City of Saint Paul.
"Prime contract" means a contract with a prime contractor
for the completion of a construction and development project, as
to which it is reasonably likely that the prime contractor will
use, contract with, or seek bids from, one or more
subcontractors. A"construction and development project" for the
purpose of this definition includes a contract with a developer
or business for any construction and development project where
such developer or business receives public funds or the pledge or
guarantee thereof, or as to which project the City of Saint Paul,
the Housing and Redevelopment Authority of the City of St. Paul,
Minnesota, or other City agency or department, is or will be
obligated to provide financing, issue bonds or other
obligations, or any other assistance of any kind to or for such
project.
"SIC, or SSC Code" means the Standard Industrial
Classification code as promulgated and maintained by one or more
agencies or departments of the United States.
"Vendor" means a business selling goods and services to the
City of Saint Paul, as well as other services, including
construction and development projects for which there will be no
subcontracts.
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"Vendor contract" means a contract with a vendor as to which
the vendor will not use, contract with, or seek bids from,
subcontractors.
"WBE, or women business enterprise" means a qualified
business concern located in the marketplace or doing business in
the marketplace at the time of bid opening or solicitation:
(a) which is at least 51 percent owned by one or more women,
or, in the case of any publicly owned business, at least 51
percent of the stock is owned by one or more women; and,
(b) whose management and daily business operations are
controlled by one or more women who own it.
Sec. 84.04. Applicability.
The provisions of this ordinance shall apply to all
contracts which are awarded by the City of Saint Paul, including
vendor contracts and prime contracts, except as may be
hereinafter specifically exempted, and shall be liberally
construed for the accomplishment of its policies and purposes.
Sec. 84.05. Administration.
(a) The Director shall direct and administer the Vendor
Outreach Program.
(b) The Director may contract with other governmental
agencies to administer programs for such other agencies which are
similar to the Vendor Outreach Program, provided that the City is
fully protected from liability and risk of loss arising out of
such contract or contracts. The Director may also contract with
nongovernmental agencies for the administration of all or part of
the Vendor Outreach Program.
(c) All departments and offices of the CiCy shall share in
the responsibility for accomplishing the policy and purposes of
the Vendor Outreach Program. The mayor may by administrative
order provide for additional activities and reports in
furtherance of said Program. In particular, the Director shall
work jointly with other city departments and offices to establish
levels of utilization of EDB's, MBE's and WBE�s in and for
professional services contracts and any other categories of
purchases that may help the City to accomplish the overall
purpose of the program.
See. 84.06. Establishment of Desired Levels of Participation.
(a) Annual Partici�ation. The Director shall establish, as
provided in this section, on an annual basis, the desired levels
of participation of EDB's, of MBE's and of WBE's in vendor
contracts and prime contracts for the next fiscal year, expressed
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as a percentage, for each, of the reasonably anticipated total
dollar amount of all such contracts. Such levels of participation
shall be adjusted, from time to time during the course of the
year as may be necessary, based on changes in the availability of
EDB's, MBE's and WBE's in the marketplace.
(b) Ad�ustments for individual �rime contracts. The Director
shall also establish andJor, where appropriate, modify levels of
participation by subcontractors, which may be more or less than
the annual levels established in subsection (a), for individual
prime contracts, taking into account the total dollars of the
contract and the dollars in the contract which may reasonably be
e�ected to be subcontracted. In setting such level of
participation, the Director shall also take into account and
remove from consideration those amounts and works under the
contract and subconCracts which cannot be performed or supplied
by subcontractors which are certified as eligible for
participation in the Vendor Outreach Program. Such levels of
participation shall be established by SIC Code where appropriate.
(c) Factors. In setting levels of participation of EDB's,
MBE's and WBE's, whether annually or for individual prime
contracts, the Director shall endeavor to arrive at the number of
such businesses (i) which are presently available in the
marketplace and which are qualified to do the particular work
required by the City contract, and (ii) which would reasonably be
expected by normal economic and business operation and market
forces to participate in such vendor contracts and prime
contracts, in the absence of present discrimination or the
effects of past discrimination.
The Director shall consider the following factors in
establishing levels of participation:
(1) the practical, as opposed to theoretical, availability
of EDB's, MBE's and WBE's ("such businesses" in this
subsection) in the marketplace;
(2) the particular goods and services, or construction or
development projects, for which such businesses are
available;
(3) the past levels of participation of such businesses in
city vendor contracts or as subcontractors in city prime
contracts;
(4) the reasonably anticipated number and amount and type of
city vendor contracts and subcontracting opportunities in
city prime contracts for the next (fiscal)(calendar) year;
(5) whether the reasonably anticipated contracts are for
goods or services, or construction contracts, for which
there are few or no such businesses available or quali£ied
to do the particular work, or to do subcontracts;
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(6) whether such businesses will be able to obtain necessary
bonds, insurance policies, and equipment or personnel
required to perform such city vendor contracts or
subcontracting on prime contracts;
(7) as to professional services, the 1evels of participation
that are established by other city departments and offices;
(8) whether the reasonable and necessary requirements of the
contract render subcontracting or other participation of
business other than the bidder or proposer infeasible;
(9) whether a public or administrative emergency exists
which requires the goods or services, or construction or
development project, to be delivered or performed with
unusual immediacy;
(10) whether the number of certified EDB's, MBE's or WBE's
providing the services required by the contract are so few
as to render them unavailable in practical terms, despite
attempts to locate them; and
(11) whether the application of the provisions of this
ordinance will impose an unwarranted risk on the City or
unduly delay acquisition of the goods or services, or
completion of the construction or development project.
Sec. 84.07. Certification of businesses.
(a) Reauirement: two years. Any EDB, MBE, or WBE ("such
business" or "such businesses" for the remainder of this section)
which seeks to participate in, or avail itself of the benefits
of, the Vendor Outreach Program, must first be certified. Once
certified, the certification is valid for the following two
calendar years, and thereafter for two-year periods.
(b) Abplication. Such business shall file an application
with the Director, and provicle such informaCion on such forms as
the Director may reasonably require. The Director may require
information (i) that will establish that such business meets and
will continue to meet the definition of an EDB, MBE or WBE, as
the case may be, for the entire period of certification, and (ii)
as to the availability and quali£ications of such business, the
areas of city vendor contracts or prime contracts such business
seeks, and the number and dollar amount of past city contracts it
has been a party to or participated as a subcontractor.
(c) Certification of another jurisdiction. The Director may
in his or her sole discretion waive all or part of the
application process, and waive the submission of information
required thereunder, as to any such business which has been
certified under a program substantially similar to the Vendor
Outreach Program. The burden is on the applicant to furnish a
copy of the application and supporting information from the other
program, and to demonstrate to the satisfaction of the Director
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that the guidelines and requirements of the other program are
substantially similar to those required under the Vendor Outreach
Program.
(d) Joint a�plications. The Director may cooperate with any
other governmental entity having a program substantially similar
to the Vendor Outreach Program in providing for a joint or
mutually acceptable application process.
(e) No certification. The Director may determine not to
certify an applicant if such business sells a product or service
which the City, either itself or for another governmental entity,
(i) has in the past either not purchased or purchases in very
limited amounts, or (ii) is not 1ikely to purchase in the
foreseeable future.
(f) Chancre in circumstances. If the Director determines that
any such business no longer meets the definition of EDB, MBE or
WBE, as the case may be, the Director may terminate the
certification of such business. Each such business which has been
certified is and remains under a continuing obligation to report
to the Director any change in circumstances affecting it that
would cause it not to meet the appropriate definition.
(g) Material misstatement of fact. If the Director
detercnines that any such business made a material misstatement of
fact in its application for certification or in any information
submitted in support of the application, wheCher intentional or
by mistake, the Director may determine either not to certify such
business for participation in the Vendor Outreach Program, or to
terminate the certification of such business if already granted.
(h) A� ep a1• Any such business whose application for
certification has not been granted, or whose certification has
been terminated, by the Director may appeal to the Director of
the Office of Technology and Management Services ("TMS
Director"). Such appeal shall be decided on written submission
and where appropriate in the discretion of the TMS Director, with
an informal conference of such business with the Director and his
or her staff.
(i) Rules. The Director may promulgate, without notice or
hearing, rules in conformity with this ordinance to further
provide procedures for certification applications, the specific
information required for applications, and any criteria for
evaluation of the applications.
(j) Periodic review. The certification for each such
business may be reviewed periodically by the Director to
determine that it continues to be eligible for certification and
meets the definitions of an EDB, MBE or WBE, as the case may be,
but such review shall take place at least every three years after
its initial certification. The Director may require each such
business which has been certified to submit all information
necessary to verify the continue eligibility of such business,
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and the failure of such a business shall automatically terminate
its eligibility to participate in the Vendor Outreach Program.
!k) Taraeted vendor develo�ment nroc�ram. A business which is
registered as a"targeted vendor" pursuant to Sec. 81.07, Saint
Paul Administrative Code, on the effective date of this ordinance
shall be certified as an EDB, MBE, or WBE, as the case may be,
and shall be included in the Vendor Outreach Program for a period
of six months following the effective date of this ordinance. The
Director shall notify all such targeted vendors of the provisions
of this ordinance. During such six month period, all such
targeted vendors which wish to be further certified shall make
request to be further certified in conformity with the
requirements of this subsection (j). Upon receipt of such a
request, the Director shall review any materials previously filed
to determine compliance with certification requirements. Where
current materials are insufficient to determine compliance,
additional materials may be requested. Any targeted vendors
failing to submit a request to continue, or failing to submit all
additional materials which may be requested by the Director, will
be terminated and will have to submit to a new certification
process.
Sec. 84.08. Prime contract bid requirements.
(a) Evidence o£ com�liance with bid documents. Each bidder
on a city prime contract is required to submit with its bid
documents evidence of its compliance with the requirements of the
Vendor Outreach Program, on such forms as the Director may
prescribe. Such forms may include a certification by the bidder
that the bidder will not use any subcontracts on the particular
job.
(b) Alternative Compliance. A bidder on a prime contract may
comply with the requirements of this ordinance in either of the
two following ways:
(1) Combliance with levels of partici�ation. If such a
bidder submits evidence with its prime contract bid
documents that it has already entered into binding contracts
with certified subcontractors whose contract dollar amounts
meet the levels of participation established for that prime
contract, it shall be deemed in compliance with such
Program. A subcontractor is certified for the purpose of
this subsection if it is certified before the award of the
contract. If such bidder submits the name of a proposed
subcontractor to satisfy this Program, and the subcontractor
is not certified before the award of the bid, the dollar
amount of that subcontract will not be counted in
determining the level of participation of certified EDB's,
MBE�s and WBE's, and the bid may be rejected as being
unresponsive if the bidder has not otherwise achieved
compliance under Sec. 84.08(b)(2) below. Bidders shall not
count toward the desired level of participation any
agreements with businesses that are not located within the
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marketplace or otherwise do not meet the guidelines as set
forth in this ordinance. The bidder may include £irst and
second tier subcontractors and suppliers as meeting the
desired levels of participation.
(2) Compliance with outreach rec�uirements. Such a
bidder may submit evidence (i) that it has complied with the
outreach requirements of the Vendor Outreach Program, and
(2) that it sought to enter into subcontracts with certified
EDB's, MBE�s and/or WBE�s who are willing and qualified to
do the work required by the particular subcontract. Such
evidence shall be submitted on such forms and meeting such
requirements as the Director may determine necessary to
establish that the bidder did comply fully and completely
with such outreach requirements. The presence of fraud,
misrepresentation, or intentional discrimination by the
bidder shall negate compliance with outreach requirements
hereunder.
(c) Outreach reauirements. The following steps are required
to be followed if the bidder on a prime contract wishes to comply
under the outreach requirements in Sec. 84.08(b)(2) above.
(1) List each possible subcontract opportunity in the prime
contract, indicating where possible the SIC Code of such
work.
(2) Obtain a current list of certified EDB's, MBE's and
WBE's from the Director, which list shall contain where
available the applicable SIC Code or Codes for such
businesses.
(3) Attend all pre-bid conferences to obtain information
about the Vendor Outreach Program, the levels of
participation of certified EDB's, MBE's and WBE's, and the
outreach requirements herein.
(4) Request assistance from minority and women community
organizations, minority and women contractor groups, or
other organizations that provide assistance to in the
recruitment and placement of EDB's, MBE�s or WBE's.
(5) Obtain a current list of minority and women publications
from the Director.
(6) Solicit bids from certified EDB's, MBE's and WBE's for
the subcontracts within the prime contract at least ten days
prior to bid opening by phone, advertisement in a local
paper and the relevant minority publications on the list
obtained from the Director, or other means specified by the
Director by written notice to the bidder. The bidder for the
prime contract must solicit bids from a minimum of 5 such
certified businesses for each subcontract within the prime
contract, by SIC Code where available and applicable. If the
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applicable certified list, using the SIC Code or Codes where
available, is five or fewer, such bidder must contact the
entire list.
(7) Provide plans and specifications or information
regarding the location of plans and specifications to
certified EDB's, MBE's or WBE`s.
(8) Where applicabl.e, advise and make efforts to assist
interested EDB's, MBE's and WBE's to obtain bonds, lines of
credit, or insurance required to perform the contract.
(9) Submit documentation if bids from certified EDB's, MBE's
or WBE's were rejected, giving the complete basis for the
rejection and evidence that the rejection was justified.
(10) Bidders on prime contracts who continuously list the
same certified EDB's, MBE�s and WBE's as having been
contacted and listed as unavailable, when contact has
previously been unsuccessful as a result of disconnected
phone numbers or returned mail, will not be deemed to be in
compliance with the outreach requirements.
Sec. 84.09. Vendor contract requirements.
(a) Director compliance. The Director shall, consistent with
applicable laws and statutes relating to competitive bidding and
awards of contracts to the lowest responsible bic3der, seek where
possible and lawful to award a portion of vendor contracts to
certified EDB's, MBE�s and WBE's, in accordance with the annual
levels of participation for such businesses established pursuant
to Sec. 84.06 above.
(b) Outreach rec�uirements. The Director shall engage in one
or more of the following outreach steps in order to achieve for
all City purchases and contracts that are vendor contracts the
level of participation that is sought herein.
(1) Solicit bids, proposals or quotations from certified
EDB's, MBE's and WBE`s for the vendor contracts prior to bid
opening by phone, advertisement in a local paper, or other
means.
(2) Provide plans and specifications or information
regarding the location of plans and specifications to
certified EDB's, MBE's or WBE's.
(c) Unmet levels of gartici�ation. In the event that the
number and dollar amount of vendor contracts awarded to EDB's,
MBE's and WBE�s does not rise to the levels of participation that
were established under Sec. 84.06 of this ordinance, the Director
shall re-examine the procedures used by the Director and other
city officials for the processing and award of contracts. Where
appropriate the Director may seek changes in such procedures by
ordinance or administrative order.
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Sec. 84.10. Monitoring and Reporting.
°I'l - �y o
(a) Ins.gection. The Director is hereby authorized to verify
that the certified EDB's, MBE's or WBE's working on any city
vendor contract or on any city prime contract are certified,
remain eligible and certified, actually performing the work, and
otherwise in compliance with the Vendor Outreach Program. Such
verification may be made by on-site inspection, requesting
written information from the bidder or the subcontractor, or by
such other means as may be reasonable.
(b) Access to records. Each certified EDB, MBE or WBE shall,
upon request of the Director, permit access during normal
business hours to its business work site, records, and files as
needed to determine conformance with Program requirements herein.
(c) Citv re�orts. Each city department and office shall
prepare reports documenting the levels of participation
established for professional service agreements for the
particular fiscal year, and the results of their efforts to meet
those goals. The Department of Planning and Economic Development
shall prepare reports documenting goals established for
development and other grant projects under its jurisdiction, and
the results of its efforts to meet those goals. The Division of
Contract and Analysis Services shall prepare similar reports for
those contracts under its jurisdiction. These reports shall be
filed with the Director of Technology and Management Services in
accordance with established schedules.
(d) Report of the director. The Director shall annually
prepare a report summarizing the information gathered pursuant to
this section, including information about any other activities
undertaken by or on behalf of the City to further the objectives
of the Venclor Outreach Program. The report shall be available to
Program participants and other interested parties.
Sec. 84.11. Business development.
(a) Bond assistance �rogram authorized. The Director is
authorized to develop and administer a program to asszst
certified EDB's, MBE�s and WBE's in meeting any bond requirements
that may apply to city contracts or projects.
(b) Sup�ort for ED$'s, MHE�s and wBE�s. The Director of the
Department of Planning and Economic Development shall undertake
and/or facilitate any other activities to enhance the viability
of EDB�s, MBEs and WBEs, in the marketplace that are authorized
by law or program. Such activities may include, but are not
limited to, mentoring, technical assistance programs, advocacy
efforts, encouraging joint venture formation, collaboration with
organized labor, and providing financial assistance.
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Sec. 84.12. Rules for administratioa of program.
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The Director may promulgate, without notice or hearing,
rules in conformity with this ordinance to further provide for
the administration of this Vendor Outreach Program. Such rules
shall not conflict with the provisions of the Program.
Sec. 84.13. Misdemeanor.
It shall be a misdemeanor for any person to furnish or to
provide fraudulent or false information for the purpose of
gaining eligibility to or participation in the Vendor Outreach
Program.
Sec. 84.14. Applicability of other laws.
Nothing in this ordinance should be construed to amend,
modify, affect or repeal any provision in any other ordinance or
statute that would otherwise be applicable to EDB's, MBE,s,
WBE,s, or to any person, firm or corporation bidding on or party
to any contract with the City of Saint Paul.
Section 2
The provisions of Chapter 81 of the Saint Paul
Administrative Code, the Targeted Vendor Development Program, are.
hereby repealed on the effective date of this ordinance.
Section 3
This ordinance shall take effect and be in force thirty (30) days
from and after its passage, approval and publication.
Requested by Department of:
1 �c�,_.u.nlC1-'1M ? ��9 ���'�-QQ
By:
Adopted by Council: Date
Adoption Certified by Council Secretary
sy:
Approved by Mayor: Date
Foxm Approved hy City Attomey
BY: �t�,Cu� � f�� �/��19�
Appro d by yor tor�sion to Council
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By:
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VENDOR OUTREACH PROGRAM
Summary of Ordinance
There are no major policy or substantive chan�es in the revised ordinance as compared to
the one that was distributed to council members. This ordinance implements the same program
that was described in staffbriefin�s. The latest draft ]ooks different because it has been
rearranged, definitions of terms have been added, and explanatory headin�s inserted where it
would help clarify the intent of the council.
This summary wil] highlight what the ordinance does, and where significant, any areas of
difference from the previous draft. Pa?e numbers refer to the attached revised draft.
0 Deciaration of policy. This has been expanded and makes clear that the Council is using
the support ofthe 1995 BBC Study for this ordinance. (pp. 1-2)
� Definitions. Existin� definitions have been clarified, and new tenns defined where
necessary. For example, the current definition of the Metropolitan Statistical Area as used
by the federai government, and adopted by Hennepin County and the City of Minneapolis
was incorporated in the definition of "marketplace." (p. 4) Also, definitions for "director"
(p. 3), "prime-contract" (p. 4), and - `vendor contracY' (p. 5) were added.
� "Level of participation." Section 84.06 ofthe ordinance uses the phrase `9eve1 of
participation," in )ieu ofthe term "�oals," so that it is clear that what the City seeks is a
desired ievel of participation of qualified and certified minority and �vomen businesses in
the city contracting and procurement processes. (pp. 5-7) Such levels are set on an
annualized basis (pp. 5-6), and also where appropriate for each contract lar�e enough to
have subcontractors (p. 6).
� How to set levels of p�rticipation. Section 84.06(c) lists the factors that must be used to
set the desired levels of participation for certified businesses. (pp. b-7)
� Certi6cation of businesses eligible to p�rticipate in the program. Section 84.07
groups together all the provisions relating to the certification process. (pp. 7-9)
0 Contracts which have subcontractors. This drafr separates the procedures for those
contracts which have or are reasonabiy likely to have subcontractors, from those which
are not likely to have subcontractors. See Section 84.08 (subcontractors) which deals with
"prime contracts" as defined (pp. 9-11); and Section 84.09 (no subcontractors) which are
referred to as "vendor contracts" (p. 11)
� Subcontracts. Contractors which have subs must either submit a bid which has
"certified" bnsinesses in an amount at ]east equal to the level of participation
established for ihem, or, in the aitemative submit evidence that they have fully
comptied with each ofthe procedures in Section 84.08(c). (pp. 10-1 I) The
requirement for the contractors is not a"good faith" effort but actuai and complete
q�.-84
compliance with the procedures listed.
F
� � Outreach requirements Following the "outreach requirements" will result in
obtaining levels of certified businesses that reach the desired level of participation.
(gp. IO-I1)
fl Contracts with no subs. Section 84.09 requires the Director seek the participation of
certified businesses in such contractin�, where that is consistent with existing laws
inciuding competitive bidding laws. Failure to reach those levels woutd require the
Director to re-examine City procedures, and su�est remedial changes. (p. 11)
� Inspection and reporting. Section 84.10 requires the Director to verify compliance, and
to report on how the Pro�ram is ��orkin�. (p. 12)
� Business support. Section 84.11 authorizes programs to support certified businesses in
additionai ways. (p. 12)
� A4iscellaneous. The remainder ofthe ordinance provides for administrative rules,
misdemeanor penalties for fraud, and a provision making ciear that no other ordinances
(other than the Targeted Vendor Program) are repealed or modified by this ordinance.
(p. 13)
0 Targeted vendor progr�m. It is repealed. (p. 13)
`s
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�\�
CITY OF SAINT PAUL
No�nn Coleman, Mayor
To:
From:
Date:
Re:
Couneil members
Martha Larson �
June 24, 1997
��
DEPAR7'MENT OF TECHNOLOGY AND
MANAGEMENT SERVICES �
Manha Larsnn, Dirccmr `{ 7 ' ���
290 Ciry HaU Telephone: 612-?66-8797
l5 W. Kellegg Boultvard Fn<similc: 6IZ-?66-8919
Saint Paul, Minnesora SS10?
Revised Ordinance - Vendor Outreach Program
As we have discussed with you in our briefin�s over the last week, attached is a revised
version of the proposed ordinance which wovtd enact the new Vendor Outreach Program
(as a replacement for the current Targeted Vendor Program). This draft of the ordinance
reflects the resvlts of the CAQ's revisions to the draft ori�inatly provided to yau in your
Disparity Study briefing packet as distributed on June 13. To assist in your review of the
new ordinance dra8, we have also attached a summary of the essentiai changes reflected in
the new version, as compared to the ori?inal.
If you have questions prior to the Council's discussion of this in your meeting tomorrow,
please don't hesitate to call me, or Peg Birk in the CAO.
Thaak you.
CC:
Peter Hames
Pe� Birk
Phil Byme
Paui McCioskey
Tyrone Terrill
Bonnie 7eilinek
Pameta t��heelock
Linda Camg
3ackie Hicks
�L
BE IT ENACTED BY THE COLTNCIL OF THE CITY OF SAINT PAUL:
5����r�
v /�� ( � 1 Council File # ��� ���
Ordinance #
A m��1, � -
Green Sheet # � �g � `
ORDINANCE
CITY OF SAINT PAUL, MINNESOTA
Presented
Referred
An ordinance to enact the
2 Vendor Outreach Program
3 as new Ctiapter 84 of the
4 Saint Paul Admiuistrative Code.
Section 1
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The following new Chapter 84 is hereby enacted as part of the Saint Paul
Administrative Code:
Sec. 84.01. Declaration of Policy and Purpose.
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The ordinance is based on and responds to the information and evidence of
discrimuiation against women and minorities documented by the Study submitted by BBC
Research & Consulting, September 1995, to the City of Saint Paul and the Study submitted by
the Insutute on Race and PovertX. February. 1996. to the Ciry of Saint Paul. In doing so, this
ordinance is intended to remedy and correct the effects of past discriminauon in construction,
goods, services and professional services whose effects still burden small and minority-owned
and women-owned basinesses in the City.
This ordinance will help prevent future discrimination against vendors and contractors
who provide goods and services to the City, or engage in the completion of construction
contracts to which the City is or shall be a party. It is intended to further discourage and
prevent discriuiination on account of race or gender.
It is the policy of the Ciry both (a) to attempt to provide a remedy for past
underutilization of qualified minority- and women-owned businesses and economically
disadvantaged small businesses, and (b) to prevent ongoing underutilizarion of such businesses
in the City's conuacting process, bp facilitating their participation as vendors to the City in its
purchase of goods, services, and construction of public buildings and pubiicly-assisted
projects, and its various economic development activities.
The policy of the City is to promote increased participation by qualified, minority-
owned, women-owned, and economically disadvantaged small businesses 3n public contracting �
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that is comparable to their availability in the Saint Paul marketplace. To this end, the Ciry
shall set annual benchmarks or levels of participation for MBE, VJBE, and economically
disadvantaged small business participation in City contracting activiries based upon their
current availability within the marketplace. These levels of participation shall not be quotas.
The levels that are established shall be reviewed every three years, and the participation of
such businesses shall be reviewed every three years, to insure (1) that the program does seek
no more than to remedy the effects of past discrimination and prevent future discrimination,
and (2) that the program does not become over time a race- ar gender-based entiflement or
quota program, nor become a limitation or cap on the participarion of qualified businesses.
Sec. 84.02. Short Title.
This ordinance and the program it enacts shall be cited as the "Vendor Qutreach
Program."
Sec. 84.03. Detinitions.
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.
`Affiliate or subsidiary of a business dominant in its field of operation" means a
business that is at least 20 percent owned by a business douiinant in its field of operation, or by
partners, officers, directors, majority stockholders, or their equivalent, of a business dominant
in that field of operafion.
`Broker"means a business that carries no inventory and that has no written or oral
ongoing agreement with any manufacturer or manufacturer's authorized distributor to sell the
products of the manufacturer. This definition is not intended to include businesses who
actively use just-in-time methods in their normal operation.
32 �usiness, or business entity "means a contractor, developer, vendor, subconuactor,
33 supplier, consultant, or provider of technical, administrative, or physical services, regardless
34 of whether operating as an individual or organized as a sole proprietorship, partnership,joint
35 venture, association, cooperative, corporation, or other entiry which is arganized for profit.
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"City °means the City of Saint Paul, Minnesota.
"Construction and development projects"means (a) construction and development
projects, (b) the construction, alteration, painting or repair of a building ar any struciure on
land, (c) any construction, building, alteration, reconstruction, modernization or improvement
of any structure, and (d) the improvement of, or addition to, any capital asset.
`Developer"means a business which contracts with or seeks to contract with the City
for any construction and development project in which the contractual documents therefor
provide that either the City or the Housing and Redevelopment Authoriry of the City of St.
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Paul, Minnesota, ("HRA") (a) will receive, at any time, legal or equitable tifle to the land, or
any building or strucnue thereon, which is part of such project, excluding fitle or property
interests to or for public rights-of-way for pedestrian or vehicle transit, ingress or egress, or
(b) is obligated to issue general obligarion bonds, or provide financing supported by a full faith
and credit pledge.
`Director"means the Director of the Division of Cornract and Analysis Sezvices in the
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Department of Technology and Management Services of the City, together with such designees
or staff persons as he or she may d'uect to carry out funcuons under this ordinance.
`Dominant in its fzeki of operation" means having more than 20 full-time employees and
more than $1,000,000 in annual gross revenues or $2,500,000 in annual gross revenues if a
technical or professional service.
`�'DB, or Economically-disadvantaged small business "means a business entity whose
principal place of business is in the marketplace and which has been in operation one year or
more that:
(a) is not a business dominant in its field of operation, nor an affiliate or subsidiary
thereof; and
(b) is not a broker, or a manufacturer's representative, does not operate as a franchise
or under a franchise agreement, and is not a business in which the owner is also owner
or part owner of one or more businesses; and
(c) is not a business whose average gross revenues for at least three (3) of the past five
years exceeds 65 percent of the average adjusted gross revenues as shown by its federal
tax returns for the same three-year period for its Standard Industrial Classification (SIC)
code as adjusted by the 3tate of Minnesota pursuant to statute.
`�ranchise, or franchised business"means a business operated under an operating
agreement obtained from a franchiser to conduct a business where the franchiser retains the
right to (1) direct, ar set requirements for, certain elements of the business, or (2) receive
compensation for use of the franchise or the goodwill or business name.
"Goods and services"means and includes (a� materials, supplies, equipment, all things
which are movable, and all tangible personal chattels, whether or not intended or suitable for
becoming a fixture when attached to real properry; @} labor and work; and (c) services of any
kind, including consultant, trade, technical, and professional services.
"Joint venture"means an association of two or more persons or businesses to carry out
a single business enterprise for profit for which purposes they combine their property, capital,
skills, knowledge and management in an agreed-to proportionate share.
"Manufacturer"means a business that makes or processes raw materials into a finished
product.
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`�lanufacturer's representative" means a business that has an agreement with one or
more manufacturers ar manufacturer's authorized distributors to sell the products of the
manufacturer, but that is not an employee of the manufacturer.
"Marketpluce"means the geographical area of the Minnesota counties of Anoka,
Benton, Carver, Chisago, Dakota, Hennepin, Isanri, Rawsey, Scott, Sherbume, Stearns,
Washington, and Wright; and the VJisconsin counties of Pierce and St. Croix.
"Minority"means a citizen of the United States or lawfully admitted permanent resident
who is Asian-American, Native American, African-American, or Hispanic.
"MBE, or minority-owned business enterprise"means a qualified business located in the
marketplace or doing business in the marketplace at the tune of bid opening or solicitation (a)
which is at least 51 percent owned by one or more miuoriry persons, or, in the case of any
publicly owned business, at least 51 percent of the stock is owned by one or more minoriry
persons; and, (b) whose management and daily business operations are controlled by one or
more minoriry persons who own it.
`Prime, or prime contractor"means a business engaging in construction and
development projects by contractual agreement, or in prime contracts, with the City. The terms
also include a developer who or which may enter into a contract with the City for a particular
construction and development project, and which necessarily contemplates that the developer
will also enter into other or fiu�ther contracts for the completion of the said project.
25 `Prime contract"means a contract with a prnne contractor for the completion of a
26 construction and development project, as to which it is reasonably likely that the prnne
27 contractor will use, contract with, or seek bids from, one or more subcontractors. A prime
28 contract also includes a contract with a developer, where such contract or the particular
29 "construction and development projecY' necessarily contemplates that the developer will enter
30 into other or further contracts for the completion of the project.
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"SIC'; or `�'IC Code"means the Standard Industrial Classification code as promulgated
and maintained by one or more agencies or departments of the United States, and includes any
code or system which replaces or succeeds the code in existence on July 1, 1997."SIC' or "5IC
Code" shall also include classification codes promulgated and maintained by the American
Institute of Architects or other arganizations concerned with contracting which, in the
discretion of the Director, are deemed more useful or suitable for carrying out the purposes of
this chapter.
"Vendor"means a business selling goods and services to the City, as well as other
services, including construcuon and development projects for which there will be no
subcontracts.
"[�endor contract"means a contract with a vendor as to which the vendor will not use,
contract with, or seek bids from, subcontractors.
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"WBE, or women-owned busfness enterprise °means a qualified business concern
2 located in the mazketplace or doin$ business in the marketplace at the time of bid opening or
3 solicitation (a) which is at least 51 percent owned by one or more women, or, in the case of
4 any publicly owned business, at least 51 percent of the stock is owned by one or more women;
5 and, (b) whose mauagement and daily business operations are controlled by one or more
6 women who own it.
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Sec. 84.04. Applicability.
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The provisions of this ordinance st�all apply ta all contracts which are awarded or
entered into by the City, including vendor contracts and prune contracts, except as may be
hereinafter specifically exempted, and sha11 be liberally construed for the accomplishment of its
policies and purposes. Any bid, as to which there is or has been a materiallack of compliance
with the requirements of this chapter 84 by any bidder, shall be deemed to be an unresponsive
bid, and such lack of wmpliance shall be a sufficient basis for the rejection of that bid by the
Directar. Every contract covered by this chapter, which is entered into without bidding, shall
include provisions which (a) obligate the prime contractor, developer and vendor to fully
comply with the applicable outreach requirements imposed in this chapter, (b) provide that
failure to so comply is a breach of such contract, and (c) provide remedies for such breach.
Sec. 84.05. Administration.
(a) The Director shall d'uect and administer the Vendor Outreach Program.
(b) The Director may contract with other governmental agencies to administer programs
for such other agencies which are similar to the Vendor Outreach Program, provided that the
City is fully protected from liabiliry and risk of loss arising out of such contract or contracts.
The Director may also contract with nongovernmental agencies far the administrauon of a11 or
part of ffie Vendor Outreach Program.
(c) All departments and o�ces of the Ciry shall share in the responsibility for
accomplishing the policy and purposes of the Vendor Outreach Program. The mayor may by
administrative order provide for additional activities and reports in furtherance of said
Program. In particular, the Director shall work jointly with other city deparrinents and offices
to establish levels of utilization of EDBs, MBEs and WBEs in and for professional services
contracts and any other categories of purchases that may help the City to accomplish the
overall purpose of the program.
Sec. 84.06. Establishment of Desired Leveis of Participation.
(a) Annual Participation. The Director shall establish, as provided in this section, on an
annual basis, the desired levels of participation of EDBs, of MBEs and of WBEs in vendor
contracts and prime contracts for the next fiscal year, expressed as a percentage, for each, of
the reasonably anucipated total dollar amount of all such contracts. Such levels of participation
shall be adjusted, from time to time during the course of the year as may be necessary, based
on changes in the availability of EDBs, MBEs and WBEs in the mazketplace.
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1 (b) Adjustments for individual prime contracts. The D'uectar shall also establish and{or,
2 where appropriate, modify levels of participation by subcontractors, which may be more or
3 less than the annual levels estahlished in subsection (a), for individual prime contracts, taking
4 into account the total dollars of the contract and the dollazs in the contract which may
5 reasonably be expected to be subcontracted. In setting such level of participation, the Director
6 shall also take into account and remove from consideration those amounts and works under the
7 contract and subcontracts which cannot be performed or supplied by subcontractors which are
S certified as eligible for participation in the Vendor Outreach Program. Such levels of
9 participation shall be established by SIC Code where appropriate, and the D'uector shall
1Q indicate which codes included within the definition of SIC Code are being used and for what
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purposes.
(c) Factors. In setting levels of participation of EDBs, MBEs and WBEs, whether
annually under subsection (a) above or for individual prnne contracts under subsection (b)
above, the Director shall endeavor to arrive at the number of such businesses (i) which are
currently available in the marketplace and which are qualified to do ffie particular work
required by the Ciry contract, and (ii) which would reasonably be expected by normal
economic and business operation and market forces to participate in such vendor contracts and
prime contracts, in the absence of present discrnnination or the effects of past discrunination.
The D'uectar shall consider the following factors in establishing levels of participation:
(1) the practical, as opposed to theoretical, availability of EDBs, MBEs and WBEs
("such businesses" in this subsection) in the marketplace;
(2) the particular goods and services, or construction or development projects, for
which such businesses are available;
(3) the past levels of participation of such businesses in City vendor contracts or as
subcontractors in city prime contracts;
(4) the reasonably anticipated number and amount and type of City vendor contracts
and subcontracting opportunities in City prime contracts for the next fiscal year;
(5) whether the reasonably anticipated contracts are for goods or services, or
construction contracts, for which there are few or no such businesses available or
qualified to do the particular work, or to do subcontracts;
(6) whether such businesses will be able to obtain necessary bonds, insurance policies,
and equipment or personnel required to perform such Ciry vendor contracts or
subcontracting on prime contracts;
(7) as to professional services, the levels of participation ffiat are established by other
Ciry departments and offices;
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(8) wheffier the reasonable and necessary requirements of the contract render
subcontracting or other participation of business other than the bidder or proposer
infeasible;
4 (9) whether a public or administrative emergency e�sts which requires the goods or
5 services, or construction or development project, to be delivered or performed with
6 unusual immediacy;
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(10) whether the number of certified EDBs, MBEs or WBEs providing the services
required by the contract are so few as to render them unavailable in practical terms,
despite attempts to locate them; and
(11) whether the application of the provisions of this ordinance will impose an
unwarranted risk on the City or unduly delay acquisition of the goods or services, or
completion of the construction or development project.
��2Zavailabilitv shall be construed as broadly as is lawful and reasonably�ossible in
order to effectuate the goals of this ordinance.
f13) and the Director shall develo.� and administer a�rogram to assist certified
businesses to obtain bondin�and insurance.
Sec. 84.07. Certi�cation of businesses.
(a) Requirement,• two years. Any EDB, MBE, or WBE ("such business" or "such
businesses" for the remainder of this section) which seeks to participate in, or avail itself of the
benefits of, the Vendor Outreach Program, must first be certified. Once certi�ed, the
certification is valid for the following two calendar years, and thereafter, for two-yeaz periods.
(b) Application. Such business sha11 file an application with the Director, and provide
such information on such forms as the Director may reasonably require. The Director may
require information (1) that will establish that such business meets and will continue to meet
the defuution of an EDB, MBE or WBE, as the case may be, for the entire period of
certification, and (2) as to the availability and qualifications of such business, the areas of City
vendor contracts or prime contracts such business seeks, and the number and dollar amount of
past City contracts it has been a parry to or participated as a subcontractor.
(c) Cenifzcation of another jurisdiction. The Director may, in his or her sole discretion,
waive all or part of the application process, and waive the submission of information required
thereunder, as to any such business which has been certiFied under a program substautially
sunilar to the Vendor Outreach Program. The burden is on the applicant to furnish a copy of
the application and supporting information from the other program, and to demonstrate to the
satisfaction of the Director that the guidelines and requirements of the other program are
substantially similar to those required under the Vendor Outreach Program.
(d) Joint applications. The Director may cooperate with any other govemmental entiry
having a program substanfially similar to the Vendor Outreach Program in providing for a joint
or mutually acceptable application process.
(e) No certification. The Director may deternune not to certify an applicant if such
business sells a product or service which ffie City, either itself or for another govermnental
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entiry, (1) has in the past either not purchased or purchases in very limited amounts, or (2) is
not likely to purchase in the foreseeable future.
4 (fl Change in circumstances. If the D'uector determines that any such business no
5 longer meets the flefinition of EDB, MBE or WBE, as the case may be, the Direcior may
6 tenrunate the certification of such business. Each such business, which has been certified is
7 and remains under a continuing obligarion to report to the Director any change in
8 circumstances affecting it that would cause it not to meet the appropriate defuution.
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(g) Material misstatement of fact. If the Director detern�ines that any such business
made a material misstatement of fact in its application for certification or in any information
submitted in support of the application, whether intentional or by mistake, the Director may
determine either not to certify such business for participation in the Vendor Outreach Program,
or to ternunate the certification of such business if already granted.
(h) Appeal. Any such business whose application for certification has not been granted,
or whose certification has been terminated, by the Director may appeal to the Director of the
Office of Technology and Management Services (°TMS Director"). Such appeal shail be
decided on written submission and where appropriate in the discretion of the TMS Director,
with an informal conference of such business with the Director and his or her staff.
(i) Periodic review. The certification for each such business may be reviewed
periodically by the Director to deternune that it continues to be eligible for certification and
meets the definitions of an EDB, MBE or WBE, as the case may be, but such review shall take
place at least every two years after its initial certification. The Director may reguire each such
business which has been certified to submit all information necessary to verify the continued
eligibility of such business, and the failure of such a business shall automatically terminate its
eligibiliry to participate in the Vendor Outreach Program.
(i) Targeted vendor development program. A business which is registered as a"targeted
vendor" pursuant to Sea 81.07, Saint Paul Adi7iinistrative Code, on the effective date of this
ordinance shall be certified as an EDB, MBE, or WBE, as the case may be, and shall be
included in the Vendor Outreach Program far a period of six months following the effective
date of this ordinance. The Director shall norify all such targeted vendors of the provisions of
tlus ordinance. During such six month period, all such targeted vendors which wish to be
fiirther certified shall make request to be further certified in confornuty with the requirements
of this subsection (j). Upon receipt of such a request, the Director shall review any materials
previously filed to determine compliance with certification requirements. Where current
materials are insufficient to determine compliance, additional materials may be requested. Any
targeted vendors failing to submit a request to continue, or failing to submit all additional
materials which may be requested by the Director, will be tenninated and will have to submit
to a new certification process.
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5ec. 84.08. Prime coutract bid requirements.
3 (a) Evidence of compliance with bid documents. Each apparent low bidder on a ciry
4 prime contract is required to submit, before the bid is awarded to it, evidence of its compliance
5 with the requirements of the Vendor Outreach Progtam, on such forms as the Director may
6 prescribe. Such forms may include a certification by the bidder that the bidder will not use anp
7 subcontracts on the particular job. S�ch evidence shall be submitted after the opening of ffie
8 bids, and on or before a date to be established by the Director, but in no case after the tenth
9 day following the opening of such bids.
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@) Compliance with outreach requirements. S�ch a bidder shall submit evidence (1)
that it has complied with the outreach requirements of the Vendor Outreach Program specified
in subsection (c) in this Section 84.08, and (2) that it sought to enter nrto subcontracts with
certified EDBs, MBEs andlor WBEs who aze willing and qualified to do the work required by
the particular subcontract. Such evidence shall be submitted on such forms and meeting such
requirements as the Director may determine necessary to establish that the bidder did comply
fully and completely with such outreach requirements. The presence of fraud,
misrepresentauon, or intenuonal discriinination by the bidder shall negate compliance with
outreach requirements hereunder.
(c) Outreach requirements. The following steps are required for compliance with the
outreach requirements of the Vendor Outreach Program in this SecUOn 84.08.
(1) List each possible subcontract opportuniry in the prime contract, indicating where
possible the SIC Code of such wark, seeking the assistauce of the Director in
ascertaining such subcontract opportunities.
(2) Obtain a current list of certified EDBs, MBEs and WBEs from the Director, which
list shall contain where available the applicable SIC Code ar Codes for such businesses.
(3) Attend all pre-bid conferences to abtain information about the Vendar Outreach
Program, the levels of participation of certified EDBs, MBEs and WBEs, and the
outreach requirements herein.
(4) Request assistance from minarity and women community organizations, minority
and women contractor groups, or other organizations that provide assistance to in the
recruitment and placement of EDBs, MBEs or WBEs.
(5) Obtain a current list of minoriry and women publications from the Director.
(6) Solicit bids from certified EDBs, MBEs and WBEs, which have been idenfified by
the Director in consultauon with the bidder as being available and capable of
performing the necessary work, far the subcontracts within the prime contract at least
ten days prior to bid opening, by ghone, advertisement in a local paper and the relevant
minority publications on the list obtained from the Director, or other means specified
by the Director, by written notice to the bidder. The bidder for the prime conuact must
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soficit bids from a minimum of five such certified businesses for each subcontract
2 withiu the prime contract, by SIC Code where available and applicable. If the
3 applicable cer[ified list, using the SIC Code or Codes where available, is five or fewer,
4 such bidder must contact the entire list.
5
6 (7) Provide plans and spe�ifications or information regarding the location of plans and
7 spec�carions to certified EDBs, MBEs or VJBEs.
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(8) Where applicable, advise and make efforts to assist interested EDBs, MBEs and
WBEs to obtain bonds, lines of credit, or insurance required to perform the contract.
(9) Submit documentation if bids from certified EDBs, MBEs or WBEs were rejected,
giving the complete basis for the rejection and evidence that the rejection was justified.
(10) Bidders on prime contracts who continuously list the same certified EDBs, MBEs
and FVBEs as having been contacted and listed as unavailable, when contact has
previously been unsuccessful as a result of disconnected phone numbers or returned
mail, will not be deemed to be in compliance with the outreach requirements.
(d) Alternative compliance. Notwithstanding the foregoing, a bidder on a prime contract
shall be deemed to have complied with the above outreach requirements of the Vendar
Outreach Program, if such a bidder submits evidence with its prime contract bid documents
that it has already entered into binding contracts with certified subcontractors whose contract
dollar amounts meet the levels of participation established for that prime contract. A
subcontractor is certified for the purpose of this subsection if it is certified before the award of
the contract. If such bidder submits the name of a proposed subcontractor to satisfy this
Program, and the subcontractor is not certified before the award of the bid, the dollar amount
of tltat subcontract will not be couuted in determining the level of participation of certified
EDBs, MBEs and WBEs, and the bid may be rejected as being unresponsive if the bidder has
not otherwise complied with the above outreach requirements of the Vendor Outreach Program
as required by this Section 84.08. Bidders shall not count toward the desired level of
participation any agreements with businesses that are not located within the marketplace or
otherwise do not meet the guidelines as set forth in this ordinance. The bidder may include
first and second tier subcontractors and suppliers as meeting the desired levels of participation.
Sec. 84.09. Vendor contract requiremeuts.
(a) Director compliance. The Director shall, consistent with applicable laws and
statutes relating to competitive bidding and awards of contracts to the lowest responsible
bidder, seek where possible and lawful to award a portion of vendor contracts to certified
EDBs, MBEs and WBEs, in accordance with the annual levels of participation for such
businesses established pursuantto Sec. 84.06 above.
(b) Outreach requirements. The D'uector shall engage in one or more of the following
outreach steps in order to achieve the desired level of garticipation for all Ciry vendor
contracts:
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(1) Solicit bids, proposals or quotations from certified EDBs, MBEs and WBEs for ihe
vendor contracts grior to bid opening by phone, advertisement in a local paper, or other
means.
(2) Provide plans and specifications or information regarding the location of plans and
specifications to certified EDBs, MBEs or WBFs.
(3) Request assistance from minority and women community organizations, minority
and women contractor groups, or other organizations that provide assistance to such
minoriry and women contractor groups in the recruitment and placement of EDBs,
MBEs or WBEs.
(4) Where applicable, advise and make efforts to assist interested EDBs, MBEs and
WBEs to obtain bonds, lines of credit, or insurance required to perform the contract.
(5) Prepare and maintain documentation if bids from certified EDBs, MBEs or WBEs
were rejected, giving the complete basis for the rejection and evidence that the rejection
was justified.
(c) Unmet Zevels of participation. In the event that the number and dollar amount of
vendor contracts awarded to EDBs, MBEs and WBEs does not rise to the levels of
participation that were established under Sec. 84.06 of this ordinance, the Director shall re-
examine the procedures ased by the Director and other City o�cials for the processing and
award of contracts. VJhere appropriate, the Director may seek changes in such procedures by
ordinance or administrative order.
Sec. 84.10. Monitoring and Reporting.
(a) Inspection. The Director is hereby authorized to verify that the certified EDBs,
MBEs or WBEs working on any City vendor contract or on any City prime contract are
certified, remain eligible and certified, actually performing the work, and otherwise in
compliance with the Vendor Outreach Program. Such verification may be made by on-site
inspection, requesting written information from the bidder or the subcontractor, or by such
other means as may be reasonable.
(b) Access to records. Each certified EDB, MBE or WBE shall, upon request of the
Director, permit access during normal business hours to its business wark site, records, and
fIles as needed to determine conformance with Program requirements herein.
(c) City reports. Each City department and office shall prepare reports documenting the
levels of participation established for professional service agreements for the particular fiscal
year, and the results of their efforts to meet those goals. The Deparnnent of Planning and
Economic Development shall prepare reports documenting goals established for development
and other grant projects under its jurisdiction, and the results of its efforts to meet those goals.
The Divlsion of Contract and Analysis Services shall prepaze similar reports for those
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contracts under its jurisdiction. These reports shall be filed with the Director of Technolagy
and Management Services in accordance with established schedules.
participants and other interested parties.
(d) Report of the director. The Director shall annually submit a report to the Mayor and
City Council summarizing the information gathered pursuant to this section, including
infarmarion about any other activities undertaken by or on behalf of the City to further the
objectives of the Vendor Outreach Program_ The report shall be available to Program
5ec. 84.11. Business development.
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-- - :.: :,��� - . := � :: -- . : :: .: :�: •: � :, . .
.: -.� . :.. : - :: .:: . : -
@) Support for EDBs, MBEs and WBEs. The D'arector of the Department of Planning
and Economic Development shall undertake andlor facilitate any other activities to enhance the
viabllity of EDBs, MBEs and WBEs, in the marketplace that are authorized by law or
program. Such activities may include, but are not limited to, mentoring, technical assistance
programs, advocacy efforts, encouraging joint venture formation, collaboration with organized
labor, and providing financial assistance.
Sec. 84.12. Misdemeanor.
It shall be a misdemeanor for any person to furnish or to provide fraudulent or false
information for the purpose of gaining eligibility for, ar participation in, the Vendor Outreach
Program.
Sec. 84.13. Applicability of other laws.
Nothina in this ordinance should be consmzed to amend, modify, affect or repeal any
provision in any other ordinance or statute that would otherwise be applicable to EDBs, MBEs,
WBEs, or to any person, firm or corporation bidding on or garty to any contract with the Ciry
of Saint Paul.
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Secrion 2
The provisions of Chapter 81 of the Saint Paul Administrative Code, the Targeted
Vendor Development Program, are hereby repealed on the effective date of this ordinance.
Section 3
This ordinance shall take effect and be in force thlrty (30) days from and after its
passage, approval and publicarion.
pnR�teurn
SEP 2d 1997
Requested by Department o£:
By:
Fosm ov�d b� C' Attof.ey
B . �c �-��-��
Approved by Mayor for Submission to Council
By:
Apgx
By:
Adopted by Council: Date � _ ,S ., �,���
�—�
Adoption Certified by Covncil Secretasy
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DEPARTMENT FFICHCOUNCIL DATE INRIATED N� 318 8 5
1eG �,61 � �I� Se,�,v�e� �-z5 .g7 GREEN SHEET _ - -
CONTACTPERSON E INITI T INRIAUOA7E
DEPAHTMENT OIRECfOR � CITY CAUNCII
(I�f�fa.�Nt� p�«+N dCIT(ATfORNEY �CRYCLERK
MUST BE ON COUNCIL AGENDA BY (DATE) RUY „R�FOX ❑ BUDGET DIRECTOR FIN. & MGT. SEflVICES OIR.
ORCER Q ypYOR (OR ASSISTANn �
TOTAL # OF SIGtiATURE PAGES (CLIP ALL LOCATIONS FOR SICaNATUR�
ncnON nEOUESrEn:
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�,L�e�..�ti a.� v.9.�.� C, . $�-I- c.�- - t� �'t-`�c� `�1�.�v.��is��Q �db .
RECOMMENDn710N5: Approve (A) m Reject (A) pERSONAL SERVICE CONTRACTS MUST ANSWER THE POLLOWING �UE5710NS: N/�
_ PLANNING CAMMISSION _ CIVIL SEflVICE COMMISSION �� Hd51}1i5 pBfSOnfimt eVBt WOrketl untlef a CoMreCt fof thiS tlB(18fM18M? - �
_ CIB COMMITTEE _ YES NO
2. Has this person/firm ever been a city employee?
— ��` — VES NO
_ WSTRIC7 cOURT _ 3. Does Mis person/firm possess a skill not normalty possessed by any curreM city employee?
SUPPORTS WXICN COUNCII O&IECTNEt YES NO
Explain al� yes answers on separate sheet antl attach to green sheet
INITIATING PROBLEM, 1SSUE.OPPORTUNITV (Who. What, When. Where, Why):
ADVANTAGES IFAPPqOVEO:
°' �C� ���
JUN 2 6 i99�
DISADVANTAGESIFAPPROVED: °" � ��
DISADYqNTAGES IF NpT A7PqOVED:
TOTAI AMOUNT OF THANSACTION $ N ( �' COSTlREVENUE BUDGETEO (qRCLE ONE) YES � NO Nl�"
FUNDIHG SOURCE �(� ACTIVITV NUMBEH N � �
FINANCIAL �NFORMATION: (EXPLAIN)
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Sugs��r�
Council File # � �
Ordinance #
Green Sheet 3 ;�
ORDINANCE
CITY OF SA11VT� PAUL, MINNESOTA 3 �
Presented By
Referred TO
An ordinance to enact the
Vendor Outreach Program
as new Chapter 84 of the
Saint Paul Administrative C�
. Date
BE IT ENACTED BY THE COUNCIL OF THE CITY/OF SAINT PAUL:
Section
The followang new Chapter 84 is hereb�nacted as part of the Saint Paul
Administrative Code:
Sec. 84.01. Declaration of Policy and
The ordinance is based on and sponds to the information and evidence of
discrimination against women and m' orities documented by the Study submitted by BBC
Reseazch & Consulting, September 995, to the City of Saint Paul. In doing so, this ordinance
is intended to remedy and correct e effects of past discrimination in construction, goods,
services and professional servic s whose effects sull burden small and minority-owned and
women-owned businesses in e City.
This ordinance wi help prevent future discrunination against vendors and contractors
who provide goods and ervices to the City, ar engage in the completion of construction
cornracts to which the ity is or shall be a party. It is intended to further discourage and
prevent discrnninati on account of race or gender.
It is the 13cy of the City both (a) to attempt to provide a remedy for past
underutilizatio of qualified minority- and women-owned businesses and economically
disadvantag small businesses, and (b) to prevent ongoing underutilization of such businesses
in the City' contracting process, by facilitating their participation as vendors to the City in its
purchase f goods, services, and construcrion of public buildings and publicly-assisted
project , and its various economic development activities.
The policy of the City is to promote 3ncreased participation by qualified, minority-
women-owned, and economically disadvantaged small businesses in public contracting
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(8) whether the reasonable and necessary requirements of the c
subcontracting or offier participation of business other than the
infeasible;
or proposer
(9) whether a public or administrarive emergency exists which equires the goods or
services, or construcuon or development project, to be delive ed or performed with
unusual iminediacy;
(10) whether the number of certified EDBs, MBEs or
required by the contract are so few as to render them
despite attempts to locate them; and /
providing the services
3ble in practical terms,
(11) whether the application of the provisions of s ordinance will impose an
mmwarranted risk on the City or unduly delay a uisition of the goods or services, or
completion of the construction or developmen project.
Sec. 84.07. Certification of businesses.
(a) Requirement,• two years. Any EDB, BE, or WBE ("such business" or "such
businesses" for the remainder of this section) hich seeks to participate in, or avail itself of the
benefits of, the Vendor Outreach Program, ust first be certified. Once certified, the
certification is valid for the following two alendar years, and thereafter, for two-year periods.
(b) Application. Such business 1 file an application with the Director, and provide
such information on such forms as th D'uector may reasonably require. The Director may
require information (1) that will es lish that such business meets and will continue to meet
the defuution of an EDB, MBE or BE, as the case may be, for the entire period of
certification, and (2) as to the av ' ability and qualifications of such business, the azeas of Ciry
vendor contracts or prnne cont cts such business seeks, and the number and dollar amount of
past City contracts it has bee a party to or participated as a subcontractor.
(c) Certification of nother jurisdiction. The Director may, in his or her sole discretion,
waive all or part of the plication process, and waive the submission of information required
thereunder, as to any s ch business which has been certified under a program substanually
similaz to the Vendor treach Program. The burden is on the applicant to furnish a copy of
the applicauon and pporting information from the other program, and to demonstrate to the
satisfaction of the irector that the guidelines and requirements of the other program are
substantially s' ' ar to those required under the Vendor Outreach Program.
(d) Jo' applications. The Director may cooperate with any other governmental entity
having a pr gram substantially similar to the Vendor Outreach Program in providing for a joint
or mutual acceptable application process.
e) No certification. The Director may determine not to certify an applicant if such
bus' ss sells a product ar service which the City, either itself or for another governmental
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comracts under its jurisdiction. These reports shall be filed with the Director of
and Management Services in accordance with established schedules.
(d) Repon of the director. The Director shall annually submit a report to the ayor and
City Council c��mmari�ing the information gathered pursuant to tYus section, incl ing
information about any other acUvities undertaken by or on behalf of the City to er the
objectives of the Vendor Ouueach Program. The report shall be available to ogram
participants and other interested parties.
Sec. 84.11. Business development.
(a) Bond assistance program authorized. The Director is
administer a program to assist certified EDBs, MBEs and WBEs
requirements that may apply to City contracts or projects. ,
(b) Support for EDBs, MBEs and WBEs. The D'u
and Economic Development shall undertake and/or facili
viabiliry of EDBs, MBEs and WBEs, in the marketplace
program. Such activities may include, but are not 1�
programs, advocacy efforts, encouraging joint ventur fc
labor, and providing fmancial assistance.
Sec. 84.12. Misdemeanor.
It shall be a misdemeanor for any
information for the purpose of gaining el
Program. ,
Sec. 84.13. Applicability of other
Nothing in tlus or
provision in any other or
WBEs, or to any person,
of Saint Paul.
to develop and
any bond
cto of ffie Deparhnent of Planning
� any other activities to enhance the
t are authorized by law or
to, mentoring, technical assistance
mation, collaboration with organized
to fiunish or to provide fraudulent or false
for, or participation in, the Vendor Outreach
� should be construed to amend, modify, affect or repeal any
;e or statute that would otherwise be applicable to EDBs, MBEs,
or corporation bidding on or party to any contract with the Ciry
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as,
Council File # � `1- Fr4o
ordinance #
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�������,f��
Presented By _�f�
Referred To l�
MINNESOTA
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SAINT PAUL:
Section 1
The following new Chapter 84 is hereby enacted as part of
the Saint Pau1 Administrative Code:
Sec. 84.01. Declaration of Policy and Purpose.
The ordinance is based on and responds to the information
and evidence of discrimination against women and minorities
documented by the Study submitted by BBC Research & Consulting,
September 1995, to the City of Saint Paul. In doing so, this
ordinance is intended to remedy and correct the effects of past
discrimination in construction, goods, services and professional
services whose effects still burden small and minority-owned and
women-owned businesses in the City of Saint Paul.
This ordinance will help prevent future discrimination
against vendors and contractors who provide goods and services to
the City of Saint Paul, or engage in the completion of
construction contracts to which the City is or shall be a party.
It is intended to further discourage and prevent discrimination
on account of race or gender.
It is the policy of the City of Saint Paul both (1? to
attempt to provide a remedy for past underutilization of
qualified minority- and women-owned businesses and economically
disadvantaged small businesses, and (2) to prevent ongoing
underutilization of such businesses in the City's contracting
process, by facilitating their participation as vendors to the
city in its purchase of goods, services, and construction of
public buildings and publicly-assisted projects, and its various
economic development activities.
Green Sheet # \���
��Iz�l�t
An ordinance to enact the
Vendor Outreach Program
as new Chapter 84 of the
Saint Paul Administrative Code.
ORfGI�V�L
�'1-�y o
The palicy of the City of Saint Paul is to provide a level
of participation by qualified, minority-owned, women-owned, and
economically disadvantaged small businesses in public contracting
that is comparable to their availability in the Saint Paul
marketplace. To this end, the City shall set annual benchmarks
or levels of participation for MBE, WBE, and economically
disadvantaged small business participation in City contracting
activities based upon their current availability within the
marketplace. These levels of participation shall not be quotas.
The levels that are established shall be reviewed every three
years, and the participation of such businesses shall be reviewed
every three years, to insure (1) that the program does seek no
more than to remedy the effects of past discrimination and
prevent future discrimination, and (2) that the program does not
become over time a race- or gender-based entitlement or quota
program.
Sec. 84.02. Short Title.
This ordinance and the program it enacts shall be cited as
the "Vendor Outreach Program."
Sec. 84.03. Definitions.
For purposes of this chapter, the following words and
phrases shall have the meanings set forth in this section, exaept
where the context clearly indicates that a different meaning is
intended.
`AffiZiate or subsidiary of a business dominant in its field
of operation" means a business that is at least twenty (20)
percent owned by a business dominant in its field of operation,
or by partners, officers, directors, majority stockholders, or
their equivalent, of a business dominant in that £ield of
operation.
NBroker° means a business that carries no inventory and that
has no written or oral ongoing agreement with any manufacturer or
manufacturer's authorized distributor to sell the products of the
manufacturer. This definition is not intended to include
businesses who actively use just-in-time methods in their normal
operation.
"Business, or business entity" means a contractor, vendor,
subcontractor, supplier, consultant, or provider of technical,
administrative, or physical services, regardless of whether
operating as an individual or organized as a sole proprietorship,
partnership, joint venture, association, cooperative,
corporation, or other entity which is organized for profit.
"Construction and development projects" means
(1)construction and development projects, (2) the construction,
alteration, painting or repair of a building or any structure on
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9�_��0
land, (3) any erection, building, alteration, reconstruction,
modernization or improvement of any structure, and (4) the
improvement of, or addition to, any capital asset.
'�irector" means the Director of the Division of Contract
and Analysis Services in the Department of Technology and
Management Services of the City of Saint Paul, together with such
designees or staff persons as he or she may direct to carry out
functions under this ordinance.
`yJOminant in its field of operation" means having more than
20 full-time employees and more than $1,000,000 in annual gross
revenues or $2,500,000 in annual gross revenues if a technical or
professional service.
"EDB, or Economically-disadvantaged small business" means a
business entity whose principal place of business is in the
marketplace and which has been in operation one (1) year or more
that:
(a) is not an affiliate or subsidiary of a business dominant
in its field of operation; and
(b) is not a broker, does not operate as a franchise or
under a franchise agreement, and is not a business in which
the owner is also owner or part owner of one or more
businesses; and
(c) is not a business whose average gross revenues for at
least three (3) of the past five (5) years exceeds sixty-
five (65) percent of the average adjusted gross revenues as
shown by its federal tax returns for the same three-year
period for its Standard Industrial Classification (SIC) code
as adjusted by the State of Minnesota pursuant to statute.
"Franchise, or franchised business" means a business
operated under an operating agreement obtained from a franchiser
to conduct a business where the franchiser retains the right to
(1) direct, or set requirements for, certain elements of the
business, or (2) receive compensation for use of the franchise or
the goodwill or business name.
"Goods and services" means and includes(1) materials,
supplies, equipment, all things which are movable, and all
tangible personal chattels, whether or not inCended or suitable
for becoming a fixture when attached to real property; (2) labor
and work; and (3) services of any kind, including consultant,
trade, technical, and professional services.
"Joint venture" means an association of two or more persons
or businesses to carry out a single business enterprise £or
pro£it for which purposes they combine their property, capital,
skills, knowledge and management in an agreed-to proportionate
share.
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"Manufacturer" means a business that makes or processes raw
materials into a finished product.
`�Ianufacturer's representative" means a business that has an
agreement with one (1) or more manufacturers or manufacturer's
authorized distributors to sell the products of the manufacturer,
but that is not an employee of the manufacturer.
"Marketplace" means the geographical area of the Minnesota
counties of Anoka, Benton, Carver, Chisago, Dakota, Aennepin,
Isanti, Ramsey, Scott, Sherburne, Stearns, Washington, and
Wright; and the Wisconsin counties of Pierce and St. Croix.
"Minority" means a citizen of the United States or lawfully
admitted permanent resident who is Asian-American, Native
American, African-American, or Hispanic.
"MBE, or minority business enterprise° means a qualified
business located in the marketplace or doing business in the
marketplace at the time of bid opening or solicitation a) which
is at least 51 percent owned by one or more minority persons, or,
in the case of any publicly owned business, at least 51 percent
of the stock is owned by one or more minority persons; and, b)
whose management and daily business operations are controlled by
one or more minority persons who own it.
"Prime, or prime contractor" means a business engaging in
construction and development projects by contractual agreement,
or in prime contracts, with the City of Saint Paul.
"Prime contract" means a contract with a prime contractor
for the completion of a construction and development project, as
to which it is reasonably likely that the prime contractor will
use, contract with, or seek bids from, one or more
subcontractors. A"construction and development project" for the
purpose of this definition includes a contract with a developer
or business for any construction and development project where
such developer or business receives public funds or the pledge or
guarantee thereof, or as to which project the City of Saint Paul,
the Housing and Redevelopment Authority of the City of St. Paul,
Minnesota, or other City agency or department, is or will be
obligated to provide financing, issue bonds or other
obligations, or any other assistance of any kind to or for such
project.
"SIC, or SSC Code" means the Standard Industrial
Classification code as promulgated and maintained by one or more
agencies or departments of the United States.
"Vendor" means a business selling goods and services to the
City of Saint Paul, as well as other services, including
construction and development projects for which there will be no
subcontracts.
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"Vendor contract" means a contract with a vendor as to which
the vendor will not use, contract with, or seek bids from,
subcontractors.
"WBE, or women business enterprise" means a qualified
business concern located in the marketplace or doing business in
the marketplace at the time of bid opening or solicitation:
(a) which is at least 51 percent owned by one or more women,
or, in the case of any publicly owned business, at least 51
percent of the stock is owned by one or more women; and,
(b) whose management and daily business operations are
controlled by one or more women who own it.
Sec. 84.04. Applicability.
The provisions of this ordinance shall apply to all
contracts which are awarded by the City of Saint Paul, including
vendor contracts and prime contracts, except as may be
hereinafter specifically exempted, and shall be liberally
construed for the accomplishment of its policies and purposes.
Sec. 84.05. Administration.
(a) The Director shall direct and administer the Vendor
Outreach Program.
(b) The Director may contract with other governmental
agencies to administer programs for such other agencies which are
similar to the Vendor Outreach Program, provided that the City is
fully protected from liability and risk of loss arising out of
such contract or contracts. The Director may also contract with
nongovernmental agencies for the administration of all or part of
the Vendor Outreach Program.
(c) All departments and offices of the CiCy shall share in
the responsibility for accomplishing the policy and purposes of
the Vendor Outreach Program. The mayor may by administrative
order provide for additional activities and reports in
furtherance of said Program. In particular, the Director shall
work jointly with other city departments and offices to establish
levels of utilization of EDB's, MBE's and WBE�s in and for
professional services contracts and any other categories of
purchases that may help the City to accomplish the overall
purpose of the program.
See. 84.06. Establishment of Desired Levels of Participation.
(a) Annual Partici�ation. The Director shall establish, as
provided in this section, on an annual basis, the desired levels
of participation of EDB's, of MBE's and of WBE's in vendor
contracts and prime contracts for the next fiscal year, expressed
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as a percentage, for each, of the reasonably anticipated total
dollar amount of all such contracts. Such levels of participation
shall be adjusted, from time to time during the course of the
year as may be necessary, based on changes in the availability of
EDB's, MBE's and WBE's in the marketplace.
(b) Ad�ustments for individual �rime contracts. The Director
shall also establish andJor, where appropriate, modify levels of
participation by subcontractors, which may be more or less than
the annual levels established in subsection (a), for individual
prime contracts, taking into account the total dollars of the
contract and the dollars in the contract which may reasonably be
e�ected to be subcontracted. In setting such level of
participation, the Director shall also take into account and
remove from consideration those amounts and works under the
contract and subconCracts which cannot be performed or supplied
by subcontractors which are certified as eligible for
participation in the Vendor Outreach Program. Such levels of
participation shall be established by SIC Code where appropriate.
(c) Factors. In setting levels of participation of EDB's,
MBE's and WBE's, whether annually or for individual prime
contracts, the Director shall endeavor to arrive at the number of
such businesses (i) which are presently available in the
marketplace and which are qualified to do the particular work
required by the City contract, and (ii) which would reasonably be
expected by normal economic and business operation and market
forces to participate in such vendor contracts and prime
contracts, in the absence of present discrimination or the
effects of past discrimination.
The Director shall consider the following factors in
establishing levels of participation:
(1) the practical, as opposed to theoretical, availability
of EDB's, MBE's and WBE's ("such businesses" in this
subsection) in the marketplace;
(2) the particular goods and services, or construction or
development projects, for which such businesses are
available;
(3) the past levels of participation of such businesses in
city vendor contracts or as subcontractors in city prime
contracts;
(4) the reasonably anticipated number and amount and type of
city vendor contracts and subcontracting opportunities in
city prime contracts for the next (fiscal)(calendar) year;
(5) whether the reasonably anticipated contracts are for
goods or services, or construction contracts, for which
there are few or no such businesses available or quali£ied
to do the particular work, or to do subcontracts;
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(6) whether such businesses will be able to obtain necessary
bonds, insurance policies, and equipment or personnel
required to perform such city vendor contracts or
subcontracting on prime contracts;
(7) as to professional services, the 1evels of participation
that are established by other city departments and offices;
(8) whether the reasonable and necessary requirements of the
contract render subcontracting or other participation of
business other than the bidder or proposer infeasible;
(9) whether a public or administrative emergency exists
which requires the goods or services, or construction or
development project, to be delivered or performed with
unusual immediacy;
(10) whether the number of certified EDB's, MBE's or WBE's
providing the services required by the contract are so few
as to render them unavailable in practical terms, despite
attempts to locate them; and
(11) whether the application of the provisions of this
ordinance will impose an unwarranted risk on the City or
unduly delay acquisition of the goods or services, or
completion of the construction or development project.
Sec. 84.07. Certification of businesses.
(a) Reauirement: two years. Any EDB, MBE, or WBE ("such
business" or "such businesses" for the remainder of this section)
which seeks to participate in, or avail itself of the benefits
of, the Vendor Outreach Program, must first be certified. Once
certified, the certification is valid for the following two
calendar years, and thereafter for two-year periods.
(b) Abplication. Such business shall file an application
with the Director, and provicle such informaCion on such forms as
the Director may reasonably require. The Director may require
information (i) that will establish that such business meets and
will continue to meet the definition of an EDB, MBE or WBE, as
the case may be, for the entire period of certification, and (ii)
as to the availability and quali£ications of such business, the
areas of city vendor contracts or prime contracts such business
seeks, and the number and dollar amount of past city contracts it
has been a party to or participated as a subcontractor.
(c) Certification of another jurisdiction. The Director may
in his or her sole discretion waive all or part of the
application process, and waive the submission of information
required thereunder, as to any such business which has been
certified under a program substantially similar to the Vendor
Outreach Program. The burden is on the applicant to furnish a
copy of the application and supporting information from the other
program, and to demonstrate to the satisfaction of the Director
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that the guidelines and requirements of the other program are
substantially similar to those required under the Vendor Outreach
Program.
(d) Joint a�plications. The Director may cooperate with any
other governmental entity having a program substantially similar
to the Vendor Outreach Program in providing for a joint or
mutually acceptable application process.
(e) No certification. The Director may determine not to
certify an applicant if such business sells a product or service
which the City, either itself or for another governmental entity,
(i) has in the past either not purchased or purchases in very
limited amounts, or (ii) is not 1ikely to purchase in the
foreseeable future.
(f) Chancre in circumstances. If the Director determines that
any such business no longer meets the definition of EDB, MBE or
WBE, as the case may be, the Director may terminate the
certification of such business. Each such business which has been
certified is and remains under a continuing obligation to report
to the Director any change in circumstances affecting it that
would cause it not to meet the appropriate definition.
(g) Material misstatement of fact. If the Director
detercnines that any such business made a material misstatement of
fact in its application for certification or in any information
submitted in support of the application, wheCher intentional or
by mistake, the Director may determine either not to certify such
business for participation in the Vendor Outreach Program, or to
terminate the certification of such business if already granted.
(h) A� ep a1• Any such business whose application for
certification has not been granted, or whose certification has
been terminated, by the Director may appeal to the Director of
the Office of Technology and Management Services ("TMS
Director"). Such appeal shall be decided on written submission
and where appropriate in the discretion of the TMS Director, with
an informal conference of such business with the Director and his
or her staff.
(i) Rules. The Director may promulgate, without notice or
hearing, rules in conformity with this ordinance to further
provide procedures for certification applications, the specific
information required for applications, and any criteria for
evaluation of the applications.
(j) Periodic review. The certification for each such
business may be reviewed periodically by the Director to
determine that it continues to be eligible for certification and
meets the definitions of an EDB, MBE or WBE, as the case may be,
but such review shall take place at least every three years after
its initial certification. The Director may require each such
business which has been certified to submit all information
necessary to verify the continue eligibility of such business,
$ �� �/z�l��
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and the failure of such a business shall automatically terminate
its eligibility to participate in the Vendor Outreach Program.
!k) Taraeted vendor develo�ment nroc�ram. A business which is
registered as a"targeted vendor" pursuant to Sec. 81.07, Saint
Paul Administrative Code, on the effective date of this ordinance
shall be certified as an EDB, MBE, or WBE, as the case may be,
and shall be included in the Vendor Outreach Program for a period
of six months following the effective date of this ordinance. The
Director shall notify all such targeted vendors of the provisions
of this ordinance. During such six month period, all such
targeted vendors which wish to be further certified shall make
request to be further certified in conformity with the
requirements of this subsection (j). Upon receipt of such a
request, the Director shall review any materials previously filed
to determine compliance with certification requirements. Where
current materials are insufficient to determine compliance,
additional materials may be requested. Any targeted vendors
failing to submit a request to continue, or failing to submit all
additional materials which may be requested by the Director, will
be terminated and will have to submit to a new certification
process.
Sec. 84.08. Prime contract bid requirements.
(a) Evidence o£ com�liance with bid documents. Each bidder
on a city prime contract is required to submit with its bid
documents evidence of its compliance with the requirements of the
Vendor Outreach Program, on such forms as the Director may
prescribe. Such forms may include a certification by the bidder
that the bidder will not use any subcontracts on the particular
job.
(b) Alternative Compliance. A bidder on a prime contract may
comply with the requirements of this ordinance in either of the
two following ways:
(1) Combliance with levels of partici�ation. If such a
bidder submits evidence with its prime contract bid
documents that it has already entered into binding contracts
with certified subcontractors whose contract dollar amounts
meet the levels of participation established for that prime
contract, it shall be deemed in compliance with such
Program. A subcontractor is certified for the purpose of
this subsection if it is certified before the award of the
contract. If such bidder submits the name of a proposed
subcontractor to satisfy this Program, and the subcontractor
is not certified before the award of the bid, the dollar
amount of that subcontract will not be counted in
determining the level of participation of certified EDB's,
MBE�s and WBE's, and the bid may be rejected as being
unresponsive if the bidder has not otherwise achieved
compliance under Sec. 84.08(b)(2) below. Bidders shall not
count toward the desired level of participation any
agreements with businesses that are not located within the
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marketplace or otherwise do not meet the guidelines as set
forth in this ordinance. The bidder may include £irst and
second tier subcontractors and suppliers as meeting the
desired levels of participation.
(2) Compliance with outreach rec�uirements. Such a
bidder may submit evidence (i) that it has complied with the
outreach requirements of the Vendor Outreach Program, and
(2) that it sought to enter into subcontracts with certified
EDB's, MBE�s and/or WBE�s who are willing and qualified to
do the work required by the particular subcontract. Such
evidence shall be submitted on such forms and meeting such
requirements as the Director may determine necessary to
establish that the bidder did comply fully and completely
with such outreach requirements. The presence of fraud,
misrepresentation, or intentional discrimination by the
bidder shall negate compliance with outreach requirements
hereunder.
(c) Outreach reauirements. The following steps are required
to be followed if the bidder on a prime contract wishes to comply
under the outreach requirements in Sec. 84.08(b)(2) above.
(1) List each possible subcontract opportunity in the prime
contract, indicating where possible the SIC Code of such
work.
(2) Obtain a current list of certified EDB's, MBE's and
WBE's from the Director, which list shall contain where
available the applicable SIC Code or Codes for such
businesses.
(3) Attend all pre-bid conferences to obtain information
about the Vendor Outreach Program, the levels of
participation of certified EDB's, MBE's and WBE's, and the
outreach requirements herein.
(4) Request assistance from minority and women community
organizations, minority and women contractor groups, or
other organizations that provide assistance to in the
recruitment and placement of EDB's, MBE�s or WBE's.
(5) Obtain a current list of minority and women publications
from the Director.
(6) Solicit bids from certified EDB's, MBE's and WBE's for
the subcontracts within the prime contract at least ten days
prior to bid opening by phone, advertisement in a local
paper and the relevant minority publications on the list
obtained from the Director, or other means specified by the
Director by written notice to the bidder. The bidder for the
prime contract must solicit bids from a minimum of 5 such
certified businesses for each subcontract within the prime
contract, by SIC Code where available and applicable. If the
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applicable certified list, using the SIC Code or Codes where
available, is five or fewer, such bidder must contact the
entire list.
(7) Provide plans and specifications or information
regarding the location of plans and specifications to
certified EDB's, MBE's or WBE`s.
(8) Where applicabl.e, advise and make efforts to assist
interested EDB's, MBE's and WBE's to obtain bonds, lines of
credit, or insurance required to perform the contract.
(9) Submit documentation if bids from certified EDB's, MBE's
or WBE's were rejected, giving the complete basis for the
rejection and evidence that the rejection was justified.
(10) Bidders on prime contracts who continuously list the
same certified EDB's, MBE�s and WBE's as having been
contacted and listed as unavailable, when contact has
previously been unsuccessful as a result of disconnected
phone numbers or returned mail, will not be deemed to be in
compliance with the outreach requirements.
Sec. 84.09. Vendor contract requirements.
(a) Director compliance. The Director shall, consistent with
applicable laws and statutes relating to competitive bidding and
awards of contracts to the lowest responsible bic3der, seek where
possible and lawful to award a portion of vendor contracts to
certified EDB's, MBE�s and WBE's, in accordance with the annual
levels of participation for such businesses established pursuant
to Sec. 84.06 above.
(b) Outreach rec�uirements. The Director shall engage in one
or more of the following outreach steps in order to achieve for
all City purchases and contracts that are vendor contracts the
level of participation that is sought herein.
(1) Solicit bids, proposals or quotations from certified
EDB's, MBE's and WBE`s for the vendor contracts prior to bid
opening by phone, advertisement in a local paper, or other
means.
(2) Provide plans and specifications or information
regarding the location of plans and specifications to
certified EDB's, MBE's or WBE's.
(c) Unmet levels of gartici�ation. In the event that the
number and dollar amount of vendor contracts awarded to EDB's,
MBE's and WBE�s does not rise to the levels of participation that
were established under Sec. 84.06 of this ordinance, the Director
shall re-examine the procedures used by the Director and other
city officials for the processing and award of contracts. Where
appropriate the Director may seek changes in such procedures by
ordinance or administrative order.
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Sec. 84.10. Monitoring and Reporting.
°I'l - �y o
(a) Ins.gection. The Director is hereby authorized to verify
that the certified EDB's, MBE's or WBE's working on any city
vendor contract or on any city prime contract are certified,
remain eligible and certified, actually performing the work, and
otherwise in compliance with the Vendor Outreach Program. Such
verification may be made by on-site inspection, requesting
written information from the bidder or the subcontractor, or by
such other means as may be reasonable.
(b) Access to records. Each certified EDB, MBE or WBE shall,
upon request of the Director, permit access during normal
business hours to its business work site, records, and files as
needed to determine conformance with Program requirements herein.
(c) Citv re�orts. Each city department and office shall
prepare reports documenting the levels of participation
established for professional service agreements for the
particular fiscal year, and the results of their efforts to meet
those goals. The Department of Planning and Economic Development
shall prepare reports documenting goals established for
development and other grant projects under its jurisdiction, and
the results of its efforts to meet those goals. The Division of
Contract and Analysis Services shall prepare similar reports for
those contracts under its jurisdiction. These reports shall be
filed with the Director of Technology and Management Services in
accordance with established schedules.
(d) Report of the director. The Director shall annually
prepare a report summarizing the information gathered pursuant to
this section, including information about any other activities
undertaken by or on behalf of the City to further the objectives
of the Venclor Outreach Program. The report shall be available to
Program participants and other interested parties.
Sec. 84.11. Business development.
(a) Bond assistance �rogram authorized. The Director is
authorized to develop and administer a program to asszst
certified EDB's, MBE�s and WBE's in meeting any bond requirements
that may apply to city contracts or projects.
(b) Sup�ort for ED$'s, MHE�s and wBE�s. The Director of the
Department of Planning and Economic Development shall undertake
and/or facilitate any other activities to enhance the viability
of EDB�s, MBEs and WBEs, in the marketplace that are authorized
by law or program. Such activities may include, but are not
limited to, mentoring, technical assistance programs, advocacy
efforts, encouraging joint venture formation, collaboration with
organized labor, and providing financial assistance.
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Sec. 84.12. Rules for administratioa of program.
`��t-��10
The Director may promulgate, without notice or hearing,
rules in conformity with this ordinance to further provide for
the administration of this Vendor Outreach Program. Such rules
shall not conflict with the provisions of the Program.
Sec. 84.13. Misdemeanor.
It shall be a misdemeanor for any person to furnish or to
provide fraudulent or false information for the purpose of
gaining eligibility to or participation in the Vendor Outreach
Program.
Sec. 84.14. Applicability of other laws.
Nothing in this ordinance should be construed to amend,
modify, affect or repeal any provision in any other ordinance or
statute that would otherwise be applicable to EDB's, MBE,s,
WBE,s, or to any person, firm or corporation bidding on or party
to any contract with the City of Saint Paul.
Section 2
The provisions of Chapter 81 of the Saint Paul
Administrative Code, the Targeted Vendor Development Program, are.
hereby repealed on the effective date of this ordinance.
Section 3
This ordinance shall take effect and be in force thirty (30) days
from and after its passage, approval and publication.
Requested by Department of:
1 �c�,_.u.nlC1-'1M ? ��9 ���'�-QQ
By:
Adopted by Council: Date
Adoption Certified by Council Secretary
sy:
Approved by Mayor: Date
Foxm Approved hy City Attomey
BY: �t�,Cu� � f�� �/��19�
Appro d by yor tor�sion to Council
7
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By:
d�� 8 `� D
�
VENDOR OUTREACH PROGRAM
Summary of Ordinance
There are no major policy or substantive chan�es in the revised ordinance as compared to
the one that was distributed to council members. This ordinance implements the same program
that was described in staffbriefin�s. The latest draft ]ooks different because it has been
rearranged, definitions of terms have been added, and explanatory headin�s inserted where it
would help clarify the intent of the council.
This summary wil] highlight what the ordinance does, and where significant, any areas of
difference from the previous draft. Pa?e numbers refer to the attached revised draft.
0 Deciaration of policy. This has been expanded and makes clear that the Council is using
the support ofthe 1995 BBC Study for this ordinance. (pp. 1-2)
� Definitions. Existin� definitions have been clarified, and new tenns defined where
necessary. For example, the current definition of the Metropolitan Statistical Area as used
by the federai government, and adopted by Hennepin County and the City of Minneapolis
was incorporated in the definition of "marketplace." (p. 4) Also, definitions for "director"
(p. 3), "prime-contract" (p. 4), and - `vendor contracY' (p. 5) were added.
� "Level of participation." Section 84.06 ofthe ordinance uses the phrase `9eve1 of
participation," in )ieu ofthe term "�oals," so that it is clear that what the City seeks is a
desired ievel of participation of qualified and certified minority and �vomen businesses in
the city contracting and procurement processes. (pp. 5-7) Such levels are set on an
annualized basis (pp. 5-6), and also where appropriate for each contract lar�e enough to
have subcontractors (p. 6).
� How to set levels of p�rticipation. Section 84.06(c) lists the factors that must be used to
set the desired levels of participation for certified businesses. (pp. b-7)
� Certi6cation of businesses eligible to p�rticipate in the program. Section 84.07
groups together all the provisions relating to the certification process. (pp. 7-9)
0 Contracts which have subcontractors. This drafr separates the procedures for those
contracts which have or are reasonabiy likely to have subcontractors, from those which
are not likely to have subcontractors. See Section 84.08 (subcontractors) which deals with
"prime contracts" as defined (pp. 9-11); and Section 84.09 (no subcontractors) which are
referred to as "vendor contracts" (p. 11)
� Subcontracts. Contractors which have subs must either submit a bid which has
"certified" bnsinesses in an amount at ]east equal to the level of participation
established for ihem, or, in the aitemative submit evidence that they have fully
comptied with each ofthe procedures in Section 84.08(c). (pp. 10-1 I) The
requirement for the contractors is not a"good faith" effort but actuai and complete
q�.-84
compliance with the procedures listed.
F
� � Outreach requirements Following the "outreach requirements" will result in
obtaining levels of certified businesses that reach the desired level of participation.
(gp. IO-I1)
fl Contracts with no subs. Section 84.09 requires the Director seek the participation of
certified businesses in such contractin�, where that is consistent with existing laws
inciuding competitive bidding laws. Failure to reach those levels woutd require the
Director to re-examine City procedures, and su�est remedial changes. (p. 11)
� Inspection and reporting. Section 84.10 requires the Director to verify compliance, and
to report on how the Pro�ram is ��orkin�. (p. 12)
� Business support. Section 84.11 authorizes programs to support certified businesses in
additionai ways. (p. 12)
� A4iscellaneous. The remainder ofthe ordinance provides for administrative rules,
misdemeanor penalties for fraud, and a provision making ciear that no other ordinances
(other than the Targeted Vendor Program) are repealed or modified by this ordinance.
(p. 13)
0 Targeted vendor progr�m. It is repealed. (p. 13)
`s
�
�\�
CITY OF SAINT PAUL
No�nn Coleman, Mayor
To:
From:
Date:
Re:
Couneil members
Martha Larson �
June 24, 1997
��
DEPAR7'MENT OF TECHNOLOGY AND
MANAGEMENT SERVICES �
Manha Larsnn, Dirccmr `{ 7 ' ���
290 Ciry HaU Telephone: 612-?66-8797
l5 W. Kellegg Boultvard Fn<similc: 6IZ-?66-8919
Saint Paul, Minnesora SS10?
Revised Ordinance - Vendor Outreach Program
As we have discussed with you in our briefin�s over the last week, attached is a revised
version of the proposed ordinance which wovtd enact the new Vendor Outreach Program
(as a replacement for the current Targeted Vendor Program). This draft of the ordinance
reflects the resvlts of the CAQ's revisions to the draft ori�inatly provided to yau in your
Disparity Study briefing packet as distributed on June 13. To assist in your review of the
new ordinance dra8, we have also attached a summary of the essentiai changes reflected in
the new version, as compared to the ori?inal.
If you have questions prior to the Council's discussion of this in your meeting tomorrow,
please don't hesitate to call me, or Peg Birk in the CAO.
Thaak you.
CC:
Peter Hames
Pe� Birk
Phil Byme
Paui McCioskey
Tyrone Terrill
Bonnie 7eilinek
Pameta t��heelock
Linda Camg
3ackie Hicks