Rules and Procedures for Employee Performance Plans and Managed Competition Contracts

Saint Paul Administrative Code tit. IV, ch. 85

in effect

Saint Paul Administrative Code § 85.01 Statement of purpose.

Sec. 85.01. - Statement of purpose. Managed competition is a process that enables city employees to achieve greater efficiency and productivity in performing various city services by competing with private vendors for the delivery of those services. It is intended to facilitate city employee participation in a process that will result in employee-formulated performance plans to achieve gains in productivity and efficiency. It may lead to the negotiation of managed competition contracts between the city and private contractors. This chapter is intended to set forth requirements and procedures to be followed when opening a city service to the managed competition proposal process. (C.F. No. 99-694, § 1, 11-3-99)

Saint Paul Administrative Code § 85.02 Definitions.

Sec. 85.02. - Definitions. (a) Board. The Compete Saint Paul Board. (b) Business unit. A group of employees submitting a proposed performance plan under the managed competition program. (c) City department. Any department, board, commission, office, or division of the city. (d) City service. A function performed by employees of the city. (e) Contract and analysis services section manager. The manager of the contract and analysis services section in the office of financial services, or his/her successor or designee. (f) Finance director. The director of the office of financial services, and his/her successor or designee. (g) Managed competition request for proposal. A proposal for the solicitation of a responsive proposal or proposals (i) from one (1) or more private parties who seek the award of a contract for the provision of city services, or (ii) for contracting or subcontracting out any city service or services. (h) Operating department. The city department in which the employees in a business unit have been requested to prepare or have prepared a performance plan, or have carried out in whole or in part such a performance plan, or whose city services may be contracted out to private parties. (i) Performance plan. A plan, strategy or program by which city employees seek to perform or deliver city services. (C.F. No. 99-694, § 1, 11-3-99; C.F. No. 04-138, § 1, 3-3-04)

Saint Paul Administrative Code § 85.03 Compete Saint Paul Board.

Sec. 85.03. - Compete Saint Paul Board. The board is hereby created. Its membership shall be representative of a diverse range of citizen viewpoints regarding the implementation and administration of the city's activities in relation to managed competition. The board shall consist of seven (7) voting members, who shall be appointed by the mayor and approved by the city council. Initially, three (3) members shall be appointed for a term of three (3) years each, two (2) members shall be appointed for a term of two (2) years each, and two (2) members shall each be appointed for a term of one year. Thereafter, the terms of members shall be for three (3) years and until their successors are appointed and approved. (C.F. No. 99-694, § 1, 11-3-99)

Saint Paul Administrative Code § 85.04 Board powers and duties.

Sec. 85.04. - Board powers and duties. (a) Advice to mayor and city council. The board shall advise the mayor and city council on matters relating to the selection of city services for performance plans and managed competition requests for proposals, including but not limited to planning, promotion, training, contract development and contractor qualifications for such activities. (b) Review of performance plans and managed competition requests for proposals. All performance plans and managed competition requests for proposals shall be submitted to the board for its review and recommendations. No performance plan, managed competition request for proposal, or proposal relating to such a plan shall be sent to private parties for responses or implemented without prior board review and consideration of its recommendations. The board shall review and make written recommendations to the mayor and city council on all performance plans and managed competition requests for proposals. The board may recommend changes in such plans or proposals. The board shall provide the office of financial services director and contract and analysis services section manager with an opportunity to make recommendations on such performance plans and managed competition requests for proposals, and shall include those recommendations in their transmittal to the mayor and city council. (c) Initiation of performance plans. The board may on its own initiative identify and recommend city services for incorporation in performance plans or in the managed competition request for proposal process, and shall submit its recommendations therefor in writing to the mayor and city council. Any proposals for performance plans or managed competition that result from the board initiative are subject to board review and recommendation under subsection (b) above. (d) Board staff. The board shall be staffed by an employee of the mayor's office and an employee of the city council's investigation and research center. Such staff shall advise the board on a monthly basis of activities related to the development of performance plans or managed competition request for proposals. (e) Board meetings. The board shall meet at least quarterly and at other times at the discretion of the board. Notice of the time, place and purpose of a board meeting shall be given as required by law. (f) Board organization. The board shall elect officers and make rules for the conduct of its business. (g) Delegation of powers. The board may by rule provide for the delegation of one (1) or more board duties, responsibilities and powers to the office of financial services director or the contract and analysis services section manager. Such rules and amendments thereto are not effective until consented to by the mayor or his or her designee, and filed with the city clerk. (C.F. No. 99-694, § 1, 11-3-99; C.F. No. 04-138, § 2, 3-3-04)

Saint Paul Administrative Code § 85.05 Budget of the board.

Sec. 85.05. - Budget of the board. The board shall submit an annual budget proposal to the appropriate officials for inclusion in the city's budget, which proposal may contain, but is not be limited to, funds for travel, training, per diem, postage, copying and supplies. This budget shall be included within the budget of an appropriate city department or office. (C.F. No. 99-694, § 1, 11-3-99)

Saint Paul Administrative Code § 85.06 Regulations and procedures for performance plans.

Sec. 85.06. - Regulations and procedures for performance plans. (a) Initiation and preparation. Performance plans may be initiated by the head of the operating department or business unit either on his or her own initiative, at the request of the employees involved, or in response to a suggestion by the board. The affected employees and their bargaining unit representatives shall be given a reasonable opportunity to participate fully in the preparation and drafting of a performance plan, and shall be given training which can be used in such preparation and drafting. Such training shall include, but not be limited to, how to measure and cost their services, and methods by which such services may be more efficiently delivered or productivity increased. Except as otherwise provided by the Minnesota Public Employees Labor Relations Act (PELRA), the participation of the bargaining unit representatives in the preparation of the performance plan shall be limited to a "meet and confer" basis as defined in PELRA. (b) The first performance plan. The first performance plan shall be effective for a period of two (2) years, during which period of time and for sixty (60) days after the expiration of such plan, no part of the city services subject to such plan shall be contracted out pursuant to or resulting from a managed competition request for proposal. (c) Decision on whether to continue under a performance plan. The board shall recommend, at least forty-five (45) days before the ending date of a performance plan, to the mayor and city council whether the business unit involved shall continue operating under the same or a revised performance plan, or the city services involved shall be considered for competitive proposals resulting from a managed competition request for proposals. The mayor and city council may continue with the same performance plan, provide for a revised performance plan, require that either the same or a revised plan shall be compared with outside competitive bids, or that the city services shall be performed by outside bidders. The decision on the foregoing four (4) options shall be made by the mayor and city council by resolution, which resolution shall be considered and acted on by the council. Such resolution or resolutions shall be sponsored by the council president as a courtesy in order to place it or them before the council, at the request of the mayor or any council member. Such resolution may also decide, in addition to the said four (4) options, whether (1) the scope and content of the managed competition request for proposal is adequate, and (2) the affected city services shall be performed under a performance plan or the lowest responsible bid received pursuant to or resulting from the managed competition request for proposal. If such resolution does not decide the last two issues, those issues shall be decided by the mayor and the council in one or more other resolutions as the case may be, which resolutions shall similarly be sponsored by the council president in order to place them before the council. (d) Term of subsequent performance plans. Any performance plan after the first one shall continue for a period of two years, subject to continuation or not as provided above. (e) Internal competitive proposal. A performance plan or any revision thereof which is prepared for the purpose of, or will be reasonably likely to be used for, competing with proposals from private parties in response to a city managed competition request for proposal shall be deemed to be an internal competitive proposal for the purposes of Minnesota Statutes, Section 13.37, relating to general nonpublic data. (C.F. No. 99-694, § 1, 11-3-99)

Saint Paul Administrative Code § 85.07 Regulations and procedures for managed competition request for proposals.

Sec. 85.07. - Regulations and procedures for managed competition request for proposals. (a) Initiation and preparation. Managed competition requests for proposals may be initiated by the head of the operating department or business unit either on his or her own initiative, at the request of the employees involved, or in response to a suggestion by the board. No managed competition request for proposals shall be sent to private parties for response until completion of the first performance plan under section 85.06(b) and until approval thereafter by the mayor and council pursuant to the procedures in section 85.06(c). (b) Two years internal operation. The board may review or make recommendations on a managed competition request for proposal at any time, but no action may be taken by the mayor or city council on such proposal except as provided in section 85.06 above. (c) Existence of private providers. A managed competition request for proposal shall not be considered by the board, mayor or city council unless there are at least three (3) private parties or entities which currently provide the particular service or services in such proposal, or unless it can be reasonably foreseen that a request for proposals or bids will result in at least three (3) responsible competitive proposals or bids for the service or services involved. (d) City must retain capacity to provide service. No city service shall be contracted out to private parties in its entirety. The city shall retain in every case the provision of twenty-five (25) percent of (1) the service or (2) the capacity to provide the service. (e) Outside contractors. (1) Disqualification. A private party responding to a managed competition request for proposal, together with its supervisory employees while in the employ of said contractor, shall be disqualified from bidding on or responding to such proposal, if such party or such employees have a record of material or repeated noncompliance with any relevant federal or state regulatory statute including, but not limited to, statutes concerning labor relations, occupational safety and health, nondiscrimination and affirmative action, environmental protection and conflicts of interest. (2) Financial and background information. Each such private party shall submit, in its response to a managed competition request for proposal, such financial and background information as the board may recommend to allow the mayor and the city council to make an informed decision on the financial viability of the party and its ability to carry out and deliver the city services in question. Such information may include, but is not limited to, financial and business references, financial records and past contracts or delivery of municipal services. (3) Employment of city employees. Each such private party shall offer any available employee positions, and any positions created as a result of the contract, to city employees who are subject to layoff due to the elimination of positions because of the competition contract and who satisfy the hiring criteria of the contractor. (f) Specifications. Each managed competition request for proposal shall contain bid specifications and such other instructions to prospective bidders as may be necessary, including clear advice to prospective bidders on or responders to any managed competition request for proposal that the city is not obligated to enter into any managed competition contract, and reserves the right to continue with the same or revised performance plan, whether in existence or prepared thereafter by the employees involved. Each such managed competition contract shall also contain all of the contract requirements in section 85.09. (C.F. No. 99-694, § 1, 11-3-99)

Saint Paul Administrative Code § 85.08 Ethics requirements.

Sec. 85.08. - Ethics requirements. Nothing in this chapter is intended to amend or modify or supersede the provisions of section 24.03(A) of the Saint Paul Administrative Code. In addition thereto, no city employee whose position in the city enables such an employee to influence the selection of a contractor, shall be employed in any capacity by a private party submitting a bid in response to a managed competition request for proposal, or have any other direct or indirect financial interest in the selection of a contractor. Any city employee involved in preparing the request for a managed competition request for proposal may not later submit a bid for or response to that same matter or contract. The private party responsible for the response to the management competition request for proposals shall not have been an employee in the business unit or business units covered by the said request for proposals during the six-month period before the response was submitted by the said private party. (C.F. No. 99-694, § 1, 11-3-99)

Saint Paul Administrative Code § 85.09 Contract requirements.

Sec. 85.09. - Contract requirements. The following provisions shall be contained in any competitive contract awarded to a private entity chosen to deliver city services according to a managed competition request for proposal: (1) Specified minimum wage rates. All contractors and their subcontractors under a managed competition contract shall conform to all applicable labor laws of the state and all other applicable laws, ordinances and legal requirements affecting the contracted work in the city. All contracts and subcontracts entered into under a managed competition contract shall provide that the wages paid and benefits paid or provided to the occupational groups utilized in such managed competition contract shall not be less than the wages paid and benefits paid or provided to comparable positions in the classified civil service system. If no comparable job class exists, the contractors and subcontractors shall pay at least the state prevailing wage rate for the occupation. If there is no state prevailing wage rate for the occupation involved, the federal prevailing wage rate shall be paid. (2) Standards. Each managed competition contract shall contain specified service and performance standards that shall be met by the contractor. (3) Contract length. No managed competition contract shall be for a term longer than two (2) years. (4) Termination. Each such managed competition contract shall provide for termination in the event of failure to meet established service standards or any other violation of the contract requirements. (C.F. No. 99-694, § 1, 11-3-99)

Saint Paul Administrative Code § 85.10 Cost savings distribution.

Sec. 85.10. - Cost savings distribution. Up to one-half of the cost savings resulting from delivery of city services under performance plans by city employees may be used by the city for bonuses to the employees performing under the managed competition arrangement and to improve workplace conditions of the operating department. The city and bargaining units may negotiate amendments to existing collective bargaining agreements if and as necessary to implement the intent of this section. No distribution of cost savings to an operating department shall be made until all the terms of the performance plan or contract have been met. (C.F. No. 99-694, § 1, 11-3-99)

Saint Paul Administrative Code § 85.11 Reports.

Sec. 85.11. - Reports. Any city department that implements managed competition through a contract or has a performance plan in place with city employees shall present an annual status report on the implementation of the program and the performance of the contractor or the city employees, as applicable, to the city council. (C.F. No. 99-694, § 1, 11-3-99)

Saint Paul Administrative Code § 85.12 Collective bargaining; statutory provisions.

Sec. 85.12. - Collective bargaining; statutory provisions. Nothing in this chapter shall abrogate or modify any rights or obligations (1) to bargain collectively about any terms or conditions of employment, or (2) existing under the Minnesota Public Employment Labor Relations Act. (C.F. No. 99-694, § 1, 11-3-99)

Saint Paul Administrative Code § 85.13 Waivers for certain contracts.

Sec. 85.13. - Waivers for certain contracts. (a) Waivers. Upon request of the mayor, the council may by resolution waive one or more of the requirements of this Chapter 85 for invitations to bid, requests for proposals and contracts for city services resulting from such invitations or requests (hereafter collectively referred to as "contracts"). Such waivers may be granted (i) where appropriate to prevent the imposition of unnecessary regulations and procedures on contracts which are useful and necessary for the orderly functioning of the city, and which are not a part of the managed competition process involving performance plans, requests for proposals, and contracts, and (ii) where the city does not have and cannot reasonably develop on a timely basis the capacity or expertise to perform the city service or services proposed to be contracted out. In granting waivers hereunder, the council may place reasonable conditions on any such waiver, which conditions may include, but are not limited to, requirements that: (1) No city employee or employees will be laid off, reduced in hours, benefits or pay, demoted, or transferred involuntarily as a result of such contracts; and/or (2) The position of any city employee or employees who, within the six (6) months preceding the request for the waiver (i) had been performing the city service or services which are to be performed under the contracts and (ii) were laid off, reduced in hours, benefits or pay, demoted, or transferred involuntarily, shall be filled before the contract services are to be performed. (b) Waivers for water utility contracts. Upon request of the general manager, the board of water commissioners may by resolution waive one or more of the requirements of this chapter for contracts relating to the operations and functions of the water utility in the same manner and upon the same grounds and criteria as provided in subsection (a) above, including the imposition of reasonable conditions on such waivers. (c) Exemption. Notwithstanding the foregoing, a contract for the performance of a city service otherwise covered by this chapter is exempt from its requirements, and does not need a waiver, if: (1) No city employee who had been performing all or any part of the city service which is to be provided under such contract will be laid off, reduced in hours, benefits or pay, demoted, or transferred involuntarily as a result of such contract; and (2) Before the contract services are to be performed, the position of any city employee who, within the six months preceding the provision of service under the contract, (i) had been performing the city service which is to be performed under the contract and (ii) was laid off, reduced in hours, benefits or pay, demoted, or transferred involuntarily, shall be refilled in accordance with applicable civil service rules and collective bargaining contract provisions; and (3) The city does not have and cannot reasonable develop on a timely basis the capacity or expertise to perform the city service proposed to be contracted out; and (4) The contract is necessary for the orderly and efficient functioning of the city, and its execution will not impair the policies and goals of this chapter. SUBTITLE G. MISCELLANEOUS POLICIES AND PROCEDURES (C.F. No. 99-1036, § 1, 11-10-99)

Source: City of Saint Paul, Minnesota, City Charter, Legislative Code and Administrative Code (Municode Library, library.municode.com)URL: https://library.municode.com/mn/st._paul/codes/code_of_ordinances?nodeId=PTIIIADCO_TITIVPOPR_CH85RUPREMPEPLMACOCOFetched: 11/1/2026