Contract Compliance

Saint Paul Legislative Code tit. XVIII, ch. 185

in effect

Saint Paul Legislative Code § 185.01 Definitions.

Sec. 185.01. - Definitions. For the 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: Persons are affiliates of each other if, directly or indirectly, either one controls or has the power to control the other, or a third person controls or has the power to control both. Evidence of control includes, but is not limited to, interlocking management or ownership; identity of interests among family members; shared facilities and equipment; common use of employees; or a business entity organized following the suspension or debarment of a person which has the same or similar management, ownership or principal employees as the suspended or debarred person. City means the City of Saint Paul and the housing and redevelopment authority of the City of Saint Paul, Minnesota. Covered transactions shall mean and include any contract under city procurement programs to which the city is a party for the performance of construction, repair or the furnishing of goods and shall further include those contracts for professional services and labor. "Covered transactions" include contracts between a contractor and a subcontractor even if the subcontractor has no formal agreement with the city. "Covered transactions" shall also include those transactions specifically designated by the U.S. Department of Housing and Urban Development in such agency's regulation governing debarment and suspension and other construction projects not handled through a city procurement program but which are financed or economically supported in whole or in part by city funds or property. Debarment shall mean an action taken by the city in accordance with this chapter to exclude a person from participating in covered transactions. A person so excluded is "debarred." Debarment proceeding shall mean an action taken that could lead to debarment, whether or not debarment is the sanction imposed by the city. Department shall mean the department of human rights and equal economic opportunity. Hearing examiner shall mean an individual or panel appointed by the director to preside as a neutral factfinder at hearings requested by a participant to challenge proposed debarments. Notice shall mean a written communication served in person or sent by first-class mail to the last-known address of party, its identified counsel, its agent for service of process, or any partner, officer, director, owner or joint venturer of the party. Notice, if undeliverable, shall be considered to have been received by the addressee five (5) days after being properly sent to the last address known by the city. Participant: Any person who submits a proposal for, enters into, or reasonably may be expected to enter into a covered transaction. This term also includes any person who acts on behalf of or is authorized to commit a participant in a covered transaction as an agent or representative of another participant. This term includes a subcontractor who is not a party to the original contract but is hired as part of a covered transaction. Person: Any individual, corporation, partnership, association, unit of government or legal entity, however organized, except foreign governments or foreign governmental entities, public international organizations, foreign government-owned or controlled entities, and entities consisting wholly or partially of foreign governments or foreign government entities. Preponderance of evidence: Proof by information or testimony that, compared with that opposing it, leads to the conclusion that the fact at issue is more probably true than not. Principal: Officer, director, owner, partner, key employee or other person within a participant with primary management or supervisory responsibilities, or a person who has a critical influence on or substantive control over a covered transaction, regardless of whether the principal is employed by the participant. Proposal: A solicited or unsolicited bid, application, request, invitation to consider or similar communication by or on behalf of a person seeking to participate or to receive a benefit directly or indirectly, in or under a covered transaction. Respondent: A person against whom a debarment or suspension action has been initiated. Suspension: An action taken in accordance with these regulations that immediately excludes a person from participating in covered transactions for a temporary period, pending completion of an investigation and such legal or debarment proceedings as may ensue. A person so excluded is "suspended." (C.F. No. 08-894, § 1, 10-1-08; Ord. No. 11-120, § 1, 1-11-12)

Saint Paul Legislative Code § 185.02 Applicability.

Sec. 185.02. - Applicability. This chapter applies to all persons who have participated, are currently participating or may reasonably be expected to participate in "covered transactions." (C.F. No. 08-894, § 1, 10-1-08; Ord. No. 11-120, § 1, 1-11-12)

Saint Paul Legislative Code § 185.03 Effect of action.

Sec. 185.03. - Effect of action. (a) Except to the extent prohibited by law, persons who are debarred or suspended shall be excluded from covered transactions as either participants or principals throughout the operations of the city for the period of their debarment or suspension. Accordingly, no employee or agent of the city shall enter into covered transactions with such debarred or suspended person during such period, except as permitted pursuant to section 185.03(b). (b) Notwithstanding the debarment or suspension of any person, city and participants may continue covered transactions in existence at the time the person was debarred or suspended. A decision as to the type of termination action, if any, to be taken of an existing covered transaction should be made only after thorough review to ensure the propriety of the proposed action. (c) The city shall not enter into, renew or extend covered transactions with any person or affiliate who is debarred or suspended. (d) No affiliate, participant, person, principal or respondent who has been debarred or suspended in accordance with this chapter may receive the benefits from any contract where the city is a funding source for the contract through an intermediary so long as the period of debarment or suspension is in effect. The department shall cause language to be inserted in the bids or contract forms to reflect this provision. (e) No affiliate, participant, person, principal or respondent shall be awarded any contract if, after being debarred or suspended and within six (6) months thereafter, it reconstitutes itself in such a way as to avoid the effect of debarment or suspension. Such a determination will be made by the department applying the standards set forth concerning evidence of control as set forth in the definition of affiliate. (C.F. No. 08-894, § 1, 10-1-08; Ord. No. 11-120, § 1, 1-11-12)

Saint Paul Legislative Code § 185.04 Causes for debarment.

Sec. 185.04. - Causes for debarment. (a) Debarment or suspension may be imposed upon any person or participant in accordance with the provisions of this chapter for the actions or inaction of the person or participant or for the actions or inaction of a subcontractor in connection with a covered transaction. Debarment or suspension may also be imposed upon a subcontractor regardless of whether they are in a direct contractual relationship with the city. Debarment or suspension may be imposed for: (1) Conviction of or civil judgment for: the commission of fraud or a criminal offense in connection with obtaining, attempting to obtain or performing a public or private agreement or transaction; violation of federal or state antitrust statutes, including those proscribing price fixing between competitors, allocation of customers between competitors, and bid rigging; embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, receiving stolen property, making false claims, or obstruction of justice; violation of Minnesota consumer protection statutes, or any other civil or criminal violation indicating a lack of business integrity or business honesty, including loss or lack of required licensure, that seriously and directly affects the present responsibility of a person. (2) Material violation of the terms of a covered transaction, public agreement or other transaction, such as a willful failure to perform in accordance with the terms of one (1) or more public agreements or transactions; a history of failure to perform or of unsatisfactory performance of one (1) or more public agreements or transactions; or a willful violation of a statutory or regulatory provision or requirement applicable to a public agreement or transaction. (3) A procurement or nonprocurement debarment by any federal, state or local agency. (4) Knowingly doing business with a debarred or suspended person in connection with a covered transaction, except as permitted in section 185.03(b). (5) Violation of a material provision of a voluntary exclusion agreement entered into or of any settlement of a debarment or suspension action. (6) Violation of any federal or state law or city ordinance regulating hours of labor and wages including but not limited to: minimum wage standards, chapter 82 of the Saint Paul Administrative Code and any other prevailing wage standards, chapter 98 of the Saint Paul Administrative Code and any other living wage standards, the Federal Davis Bacon Act, Minnesota Statute § 116J (relating to business subsidies), discrimination in wages standards, or child labor standards. (7) Violation of: a. Chapter 183 of the Saint Paul Legislative Code; b. Chapter 84 of the Saint Paul Administrative Code; or c. Any federal, state or local rules, regulations, laws or agreements regarding discrimination in employment, vendor outreach goals, civil rights, affirmative action, equal employment opportunity, conflict of interest, or nondiscrimination. (8) Violation of a labor peace agreement or project labor agreement. (9) Any serious or compelling causes that are related to a person or participant's fitness to enter into or successfully perform a covered transaction with the city. (b) Suspension may be applied for any of the causes identified in this section when immediate action is necessary to protect the public interest. (C.F. No. 08-894, § 1, 10-1-08; Ord. No. 11-120, § 1, 1-11-12)

Saint Paul Legislative Code § 185.05 Debarment proceeding process.

Sec. 185.05. - Debarment proceeding process. (a) Notice and hearing requirements. In any case where the city intends to consider a debarment, the person or participant having a covered transaction with the city shall be given notice and an opportunity to be heard as provided herein. (b) Notice: If the department determines that cause exists to commence a debarment under section 185.04, the department, or the city attorney's office on behalf of the department, shall issue a notice of the proposed proceedings to the person or participant having a covered transaction with the city. The notice shall advise the person or participant of the following: (1) That a debarment is being considered; (2) The reasons or causes for proposed action in terms sufficient to put the person or participant on notice of the conduct or transaction(s) upon which it is based; (3) The proposed sanction; (4) That the person or participant is entitled to a hearing before action is taken by the department; (5) That the person or participant can choose to admit or deny the allegations giving rise to the debarment proceeding. a. If the person or participant wishes to admit the allegations but contest the proposed sanction, he/she may submit information to mitigate the penalty to the department and the director or his/her designee shall respond within seven (7) calendar days as to whether the information has changed the proposed sanction. b. If the person or participant wishes to deny the allegations giving rise to the debarment proceeding, then the person must request a hearing before a hearing examiner. c. Failure to respond in writing within fifteen (15) working days of the notice of proposed debarment shall be deemed an admission of the allegations and acceptance of the proposed penalty. (c) Upon receipt of a written request from a person or participant (respondent), the department shall arrange a hearing before a hearing examiner. The person or participant shall be provided an opportunity to present evidence and argument as well as meet adverse testimony or evidence by reasonable cross-examination and rebuttal evidence. The hearing examiner may in his/her discretion permit other interested persons the opportunity to present testimony or evidence or otherwise participate in such hearing. (C.F. No. 08-894, § 1, 10-1-08; Ord. No. 11-120, § 1, 1-11-12)

Saint Paul Legislative Code § 185.06 Hearing before hearing examiner.

Sec. 185.06. - Hearing before hearing examiner. (a) The hearing examiner shall hear all evidence as may be presented on behalf of the city and the respondent, and shall present to the department written findings of fact and conclusions of law together with a recommendation regarding the appropriate sanction. (b) The respondent may represent himself or herself or choose to be represented by another. (c) Record; evidence. The hearing examiner shall receive and keep record of such proceedings, including testimony and exhibits, and shall receive and give weight to evidence, including hearsay evidence, which possesses probative value commonly accepted by reasonable and prudent persons in the conduct of their affairs. (d) The city must prove the cause for a debarment by a preponderance of the evidence. If the action is based upon a criminal conviction, a civil judgment arising out of respondent's normal business affairs or debarment by a federal or state agency or another municipality, the standard shall be deemed to have been met through introduction of evidence of the conviction, judgment or debarment. The respondent has the burden of proof for establishing mitigating circumstances. (C.F. No. 08-894, § 1, 10-1-08; Ord. No. 11-120, § 1, 1-11-12)

Saint Paul Legislative Code § 185.07 Final determination by department.

Sec. 185.07. - Final determination by department. (a) The department shall consider the evidence contained in the record, the hearing examiner's recommended findings of fact and conclusions, and shall not consider any factual testimony not previously submitted to and considered by the hearing examiner. The department may accept, reject or modify the findings, conclusions and recommendations of the hearing examiner. (b) Department action. Where the department orders debarment or other sanction with respect to a person or participant, the department director or his/her designee shall issue an order which shall contain its findings and determination. The order may adopt all or part of the findings, conclusions and recommendations of the hearing examiner, and incorporate the same in its order but must make findings and conclusions to support modification or rejection. (c) Imposition of costs. The department may impose upon any respondent some or all of the costs of a contested hearing before an independent hearing examiner. The costs of a contested hearing include, but are not limited to, the costs of the hearing examiner, stenographic and recording costs, copying costs, city staff and attorney time for which adequate records have been kept, rental of rooms and equipment necessary for the hearing, and the cost of expert witnesses. The department may impose all or part of such costs in any given case if the position, claim or defense of the respondent was frivolous, arbitrary or capricious, made in bad faith, or made for the purpose of delay or harassment. (Ord. No. 11-120, § 1, 1-11-12)

Saint Paul Legislative Code § 185.08 Debarment period; other sanction.

Sec. 185.08. - Debarment period; other sanction. (a) Debarment shall be for a period commensurate with the seriousness of the cause(s). A debarment shall not exceed three (3) years. If a suspension precedes a debarment, the suspension period shall be considered in determining the debarment period. The department shall recommend a sanction based upon appropriate aggravating and mitigating circumstances such as: (1) The potential for harm or imminent threat to public health; (2) The extent of deviation from contractual or regulatory requirements; (3) The degree of willfulness or negligence; (4) The history of noncompliance or compliance; (5) The demonstration of good faith efforts to correct a violation; (b) All suspensions shall be for a temporary period pending the completion of an investigation and such legal or debarment proceedings as may ensue. A suspension shall become effective immediately upon issuance of the notice specified in section 185.06(c) including notice that a suspension is required to protect the public interest. (C.F. No. 08-894, § 1, 10-1-08; Ord. No. 11-120, § 1, 1-11-12)

Saint Paul Legislative Code § 185.09 Debarment records.

Sec. 185.09. - Debarment records. All documents and other data assembled pursuant to this chapter shall be handled and retained by the department or city clerk in accordance with applicable local and state data retention policies. (C.F. No. 08-894, § 1, 10-1-08; Ord. No. 11-120, § 1, 1-11-12)

Saint Paul Legislative Code § 185.10 Business licensing.

Sec. 185.10. - Business licensing. (a) Whenever a debarment action is completed against a participant who is also a holder of a business license from the city, the department shall transmit a copy of the written debarment decision along with copies of the debarment record to the city license inspector. Within ten (10) working days of receipt of the decision and the materials, the license inspector shall determine whether to commence an adverse license hearing. Any such adverse hearing initiated shall be handled in accordance with section 310.05 of the Legislative Code. (b) Any adverse action taken by the city concerning the license of any person based on the breach of contractual responsibilities shall be referred to the department for a determination as to whether debarment proceedings hereunder should be commenced. (C.F. No. 08-894, § 1, 10-1-08; Ord. No. 11-120, § 1, 1-11-12)

Saint Paul Legislative Code § 185.11 List of records of debarred contractors.

Sec. 185.11. - List of records of debarred contractors. (1) List: The department shall compile, maintain and publish a current consolidated list of all debarred contractors to ensure that the city does not solicit or accept bids from, negotiate with, award contracts to, and approve or allow subcontracts with listed contractors. Persons or participants with contracts awarded by the city shall ensure that no subcontracts are issued to debarred contractors. (2) Records: The department shall maintain records relating to each debarred contractor. These records shall contain the name and address, cause for debarment and the date each cause occurred, any limitations or deviations from the normal effect of the debarment, and the effective and termination dates of the debarment. (C.F. No. 08-894, § 1, 10-1-08; Ord. No. 11-120, § 1, 1-11-12)

Saint Paul Legislative Code § 185.12 Additional penalties.

Sec. 185.12. - Additional penalties. Nothing in this section shall preclude the enforcement of provisions of this chapter in any court of competent jurisdiction by any appropriate form of civil action, including seeking to enjoin any continued violation and seeking to compel obedience by issuing an order to correct violations. (C.F. No. 08-894, § 1, 10-1-08)

Saint Paul Legislative Code § 185.13 Severability.

Sec. 185.13. - Severability. If any section or any portion of a section of this chapter shall be declared unconstitutional, invalid or inoperative, in whole or in part, by any court of competent jurisdiction, the remaining sections and all portions thereof not declared unconstitutional, invalid or inoperative shall remain in full force and effect, and no such determination shall invalidate the remaining sections or portions of sections of this chapter. (C.F. No. 08-894, § 1, 10-1-08)

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=PTIILECO_TITXVIIIHURI_CH185COCOFetched: 11/1/2026