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2016-4030 Ordinance ORDINANCE NO. 2016-4030 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA AMENDING CHAPTER 31 OF THE CODE OF THE CITY OF MIAMI BEACH, ENTITLED "PURCHASING," BY CREATING ARTICLE III, TO BE ENTITLED "LOCAL WORKFORCE PARTICIPATION PROGRAM FOR CITY CONSTRUCTION CONTRACTS," TO ESTABLISH WORKFORCE PARTICIPATION GOALS AND REPORTING REQUIREMENTS FOR CITY CONSTRUCTION CONTRACTS IN EXCESS OF $1,000,000 FOR THE CONSTRUCTION, DEMOLITION, ALTERATION AND/OR REPAIR OF CITY BUILDINGS, CITY PUBLIC WORKS, AND BUILDINGS OR IMPROVEMENTS LOCATED ON CITY-OWNED LAND; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. WHEREAS, in order to encourage the hiring of Miami Beach and Miami-Dade County residents for construction projects in excess of $1,000,000 for City buildings, City public works, and buildings or improvements located on City land, the hiring goals and reporting requirements set forth in this Ordinance should be adopted. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. That Article III of Chapter 31 of the Code of the City of Miami Beach, Florida, is hereby created as follows: CHAPTER 31 PURCHASING * * * Sec. 31-32 — 31-39. Reserved. ARTICLE III. LOCAL WORKFORCE PARTICIPATION PROGRAM FOR CITY CONSTRUCTION CONTRACTS. Sec. 31-40. Local Workforce Participation Goals and Reporting Requirements for City Construction Contracts. (1) Definitions. The following words, terms, and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: (a) City construction contract means (i) a city contract valued in excess of $1,000,000 for the construction, demolition, alteration and/or repair of city buildings or city public works, or (ii) a contract valued in excess of $1,000,000 which provides for privately-funded construction, demolition, alteration and/or repair of buildings or improvements located on city—owned land. (b) Department means the department responsible for managing the awarded city construction contract as designated by the city manager. Lcj Contractor means any person or entity providing construction services pursuant to subsection (1)(a). (2) Implementation. The provisions of this article shall apply to city construction contracts that: a) are subject to section 31-27 of article II of this chapter; and b) are awarded pursuant to an Invitation to Bid (ITB) or Request for Proposals (RFP) issued by the city on or after April 1, 2017. (3) General requirements. (a) Except where state, county or federal laws or regulations, or other approved granting agencies, mandate to the contrary, all contractors and subcontractors of any tier performing on a city construction contract shall satisfy the requirements of this article. (b) As a condition of submitting a bid or proposal for a city construction contract, a general contractor, construction manager, or other contractor seeking award of a contract, shall submit a responsible contractor affidavit, as provided in subsection (4), with its bid or proposal. The city shall provide notice to any contractor who fails to submit a responsible contractor affidavit that said contractor has forty-eight (48) hours from the time of notification to submit a responsible contractor affidavit or its bid or proposal will be deemed nonresponsive and disqualified from consideration. (c) The responsible contractor affidavit shall be completed on a standard form authorized by the Procurement Director and shall reference the city construction contract for which a bid or proposal is being submitted by name and contract or project number. Any city agency, department, or other party responsible for administering a city construction contract shall require contractors to use the standard form authorized by the Procurement Director. A city construction contract shall not be executed until all requirements of this section have been fulfilled. Lei No contractor shall receive final payment for completion of a city construction contract until the city receives a completed workforce performance report submitted pursuant to subsection (4)(b). (4) Responsible contractor affidavit and workforce performance reporting requirements; contractor past performance. Responsible contractor affidavit. A construction manager, general contractor, or other contractor submitting a bid or proposal for a city construction contract shall verify the following information on its responsible contractor affidavit form: (1) The contractor will make its best reasonable efforts to promote employment opportunities for Miami-Dade County residents by seeking to achieve a project goal of having thirty percent (30%) of all construction labor hours performed by Miami-Dade County residents. The contractor shall also make its best reasonable efforts to promote employment opportunities for Miami Beach residents. To verify workers' residency, contractors shall provide the residence address of each worker. (2) The responsible contractor affidavit shall specify the total number of persons that will be used by the contractor (and by all subcontractors) to perform all of the construction trades and labor work of the contract, broken down by trade and labor category, minimum qualifications for each category, and the number of persons to be utilized in each category. The name, address, and trade category of all persons proposed to perform work under the contract currently on the contractor's (or on any proposed subcontractor's) payroll who reside in Miami Beach and Miami-Dade County shall be provided. The responsible contractor affidavit shall also indicate the number of positions shown on the work, trade categories, and minimum qualifications therefore, to be. hired by the contractor (or by any proposed subcontractors) to perform the construction trades and labor work under the contract. (b) Workforce performance report. Before its final application for payment of a city construction contract, the contractor responsible for the project shall submit a workforce performance report to the city which shall include the following information on the workforce employed in the execution of the contract: (1) The total number of construction labor work hours performed on the project, and the number and percentage of such work hours performed by Miami Beach and Miami-Dade County residents; (2) Supporting documentation verifying construction labor work hours performed by Miami Beach and Miami-Dade County residents; (3) Supporting documentation verifying reasonable efforts to promote employment opportunities for Miami Beach and Miami-Dade County residents if the project goal of thirty percent (30%) of all construction labor hours to be performed by Miami-Dade County residents is not met. (c) When evaluating a prospective contractor's bids or proposals for future city construction contracts, in addition to those factors identified in Section 2-369 of the City Code for determination of award, the contractor's past record of meeting local workforce goals and complying with reporting requirements of this article shall be considered. SECTION 2. REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 3. SEVERABILITY. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 4. CODIFICATION. It is the intention of the Mayor and City Commission of the city of Miami Beach, and it is hereby ordained that the provisions of this ordinance shall become and be made part of the Miami Beach City Code. The sections of this ordinance may be renumbered or relettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or other appropriate word. SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect on the VI day of S*p4.t moo( , 2016. PASSED AND ADOPTED this 14 day of 5,P4e Mber , 2016. Philip e/% ayor ATTEST: ........... .0.; APPROVED AS TO R_ ael " ranado City Jerk • .r T= ;� ORM & LANGUAGE�^ , ;, F.• TION •Underline denotes additions 'NOOK/ IOR TLD, Strikethrough denotes deletions �- ''> �'%� a6 („ • .:_.....• a City Attorney ate y (Sponsored by Commissioner Micky Steinber T:\AGENDA\2016\July\Procurement\Workforce Ordinance\Workforce Requirements Contruction Contracts 20160607.docx Ordinances - R5 J MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: September 14, 2016 10:45 a.m. Second Reading Public Hearing SUBJECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA AMENDING CHAPTER 31 OF THE CODE OF THE CITY OF MIAMI BEACH, ENTITLED "PURCHASING," BY CREATING ARTICLE III, TO BE ENTITLED "LOCAL WORKFORCE PARTICIPATION PROGRAM FOR CITY CONSTRUCTION CONTRACTS," TO ESTABLISH WORKFORCE PARTICIPATION GOALS AND REPORTING REQUIREMENTS FOR CITY CONSTRUCTION CONTRACTS IN EXCESS OF $1,000,000 FOR THE CONSTRUCTION, DEMOLITION, ALTERATION AND/OR REPAIR OF CITY BUILDINGS, CITY PUBLIC WORKS, AND BUILDINGS OR IMPROVEMENTS LOCATED ON CITY-OWNED LAND; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION,AND AN EFFECTIVE DATE. ANALYSIS BACKGROUND Pursuant to a request received from Commissioner Steinberg, the Administration and the City Attorney's Office have drafted an ordinance establishing a Local Workforce Participation Program for City Construction Contracts. The ordinance establishes a goal of 30% local workforce for City construction contracts in excess $1,000,000. Local is defined as Miami-Dade County. Although there is no specific goal for City residents, contractors are encouraged to promote recruitment for City of Miami Beach residents. The ordinance requires contractors to submit reports documenting the residency of project workers and efforts in recruiting both City of Miami Beach and County residents for the project. Local hire ordinances are laws passed by counties and municipalities to promote the hiring of residents from the applicable area by contractors awarded public projects. As a background to this ordinance, Matthew Land, of the Southeast Laborers' District Council, has provided the following informational bullets. 1. Why Do Municipalities Pass Local Hire Policies? • In its most simple form, local governments see the need to address high levels of unemployment throughout their city, county or municipality by passing local hire initiatives. By requiring that contractors aspire to or mandate that they give the first shot at jobs on taxpayer funded infrastructure projects, this is a way to address unemployment levels as well as provide for a career for those that are unemployed. Page 845 of 2277 When taxpayer funds are used, government bodies feel that those jobs should first go to the taxpayers themselves while discouraging contractors from being in out- of-state or out of the country crews of workers to complete those projects, which sometimes can be at lower levels of pay than what the market in their community dictates.Local governments know what is best for their community and feel that they can best address those needs through local hire, training and wage ordinances for the construction industry on those projects that are funded with taxpayer dollars. Additionally, when local hire initiatives are successful and local people are put to work, they put their earnings back into the community. 2. Some of the Municipalities in Miami-Dade County and in Florida that have Local Hire Ordinances The City of Miami passed a local hire ordinance in 2012 that was later updated in 2015. It sets out a percentage of Miami-Dade County residents that must be hired based on the dollar amount of the construction contract starting at $250,000 and 10% local hire and going up to contracts valued at more than $4 million and 40% local hire. It also states that 50% of those residents should strive to come from the City Commission district where the project is located. Miami-Dade County has two local hire ordinances: Community Workforce Program and the Residents First Training and Employment Program: o The Community Workforce Program (CWP) is designed to provide job opportunities to local residents of traditionally underserved and underdeveloped neighborhoods. Not less than 10% of the labor force must come from the Designated Target Area (DTA) in which the public improvement is located. Designated Target Areas (DTA) are any geographic area of Miami- Dade County designated as an Empowerment/Enterprise Zone, a Targeted Urban Area (TUA), Community Development Block Grant (CDBG) Eligible Block Group or Focus Area. o Miami-Dade County Residents First Training and Employment Program sets out that contractors and subcontractors on County construction contracts valued in excess of $1,000,000 shall make their best reasonable efforts to have fifty-one (51%) of all construction labor hours performed by Miami-Dade County residents and require all persons employed on the project to perform construction to have completed the OSHA 10-hour safety training. • The City of North Miami recently passed an ordinance addressing local hiring in March 2016. It does not specifically set the local hire requirement on the project, but contractors must detail proposed local hiring and training efforts as part of their bid proposal where local residents are considered those residing in the City of North Miami. It applies to City projects over$250,000. Additionally, Broward County has some ordinances addressing those that are considered "hard-to-hire" or economically disadvantaged by ensuring hiring of those individuals through CareerSource Broward, Additionally, the St. Petersburg City Commission has draft legislation that deals with local hire initiatives. 3. Miami Beach Convention Center Expansion The Miami Beach Convention Center renovation and expansion is the first time that the City of Miami Beach has placed an emphasis on hiring local residents to work on the project. Page 846 of 2277 As of the most recent LTC on the Miami Beach Convention Center from June 2016, the project has achieved 61.4% local hire of Miami-Dade County residents. CONCLUSION City staff hereby submits for your review the ordinance establishing a Local Workforce Participation Program. FINANCIAL INFORMATION The ordinance requires monitoring of contractor compliance and collection of workforce participation data with respect to reporting requirements established in the ordinance. In lieu of a staffing request, if adopted, the Administration is proposing to utilize one of several contractor compliance software packages utilized by local, state and federal agencies. Funding for the software licenses will be included in the budget for fiscal year 2017. Legislative Tracking Procurement/City Attorney Sponsor Commissioner Micky Steinberg ATTACHMENTS: Description ❑ Ordinance Page 847 of 2277