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HomeMy WebLinkAboutG13-13 Ordinance No. G13-13 AN ORDINANCE AMENDING TITLE 5 OF THE ELGIN MUNICIPAL CODE, 1976, AS AMENDED, ENTITLED "PROCUREMENTS" TO PROVIDE FOR A REQUIRED MINIMUM PERCENTAGE OF ELGIN RESIDENT WORKERS ON CITY CONSTRUCTION CONTRACTS AND TO PROVIDE FOR BID INCENTIVES FOR THE UTILIZATION OF APPRENTICES WHO ARE ELGIN RESIDENTS WHEREAS,the City of Elgin is a home rule municipality as defined in Article 7,Section 6A of the 1970 Constitution of the State of Illinois; and WHEREAS,a home rule unit may exercise any power and perform any function pertaining to its government and affairs; and WHEREAS,an ordinance providing for the regulation,procedures and requirements for the procurement of supplies, services and construction by the City of Elgin pertains to the government and affairs of the City of Elgin; and WHEREAS,unemployment levels within the City of Elgin have been and continue to remain at a higher level than unemployment levels in the State of Illinois and nationwide; and WHEREAS, a requirement in the City's procurement ordinance requiring that a certain minimum percentage of city residents be employed on specified city construction contracts and a provision providing for a bid incentive for contractors who utilize apprentices who are residents of Elgin will assist in reducing unemployment levels within the City of Elgin and will assist in providing employments opportunities and employment training to Elgin residents. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1. That Chapter 5.08 of the Elgin Municipal Code, 1976, as amended, entitled "Source Selection; Competitive Sealed Bidding"be and is hereby further amended by adding a new Section 5.08.170 thereto entitled "Construction Contracts-Percentage of City Resident Worker Hours",to read as follows: "5.08.170 Construction Contracts-Percentage of City Resident Worker Hours: A. For any city construction contract advertised,or if not advertised, awarded after the effective date of this ordinance having an estimated contract value of$100,000.00 or more, and where not otherwise prohibited by federal, state or local law,the total hours worked by persons on the site of the construction project by employees of the contractor and subcontractors shall be performed at least ten percent (10%) by actual residents of the City of Elgin. rik This minimal percentage of Elgin residents shall not be understood as limiting or deterring the fuller utilization of Elgin residents beyond this level, but is intended instead as a minimal requirement. Contractors shall make good faith efforts to utilize qualified residents of the City of Elgin in unskilled and skilled labor positions. The purchasing director shall separately monitor the utilization of residents of the city in skilled and unskilled positions, and shall report his or her findings to the city manager and the city council when substantially all of the construction contracts for each construction season have been closed.The purchasing director shall also report whether he or she has determined that separate minimum percentages of Elgin residents are warranted for skilled and unskilled labor positions. The purchasing director shall develop standards and procedures for reducing or waiving this minimum percentage level of Elgin residents when a bidder or contractor can demonstrate the impracticality or excessive cost of complying with this percentage level for particular contracts or classes of employees. Except as otherwise provided in the purchasing director's standards and procedures, a waiver or reduction shall be deemed appropriate if a contractor or subcontractor has unsuccessfully solicited a sufficient number of residents of the City of Elgin to perform the work identified in the bid solicitation and has documented such effort to the satisfaction of the purchasing director. In addition, such standards and procedures shall require that a contractor seeking a waiver or reduction shall have provided timely notice of the need for qualified residents of the City of Elgin to an appropriate source of referrals, which source shall be entitled to comment on any waiver or reduction application. If the purchasing director determines that a lesser percentage standard is appropriate with respect to a particular contract subject to competitive bidding prior to the bid solicitations for such contract, such bid solicitations shall include a statement of such revised standards. The purchasing director shall file annual reports of his or her determinations on all reduction or waiver requests made pursuant to this paragraph with the city manager and the city council. B. Implementation of the requirements established in subsection A of this section will be achieved by including in contracts and subcontracts described therein the following language: The contractor and all subcontractors that perform work on the site on the construction project undertaken pursuant to this contract shall comply with the minimum percentage of total worker hours performed by actual residents of the City of Elgin as specified in Section 5.08.170 of the Elgin Municipal Code. "Actual residents of the City of Elgin"shall mean persons domiciled within the corporate city limits of the City of Elgin. The domicile is an individual's one and only true, fixed and permanent home and principal residence which has not been adopted with the intention of again taking up or claiming a previous residence outside the corporate city limits of the City of Elgin. The contractor shall provide for the maintenance of adequate employee residency records to ensure that actual Elgin residents are employed on the project. The contractor and subcontractors C - 2 - shall maintain copies of personal documents supportive of every Elgin employee's actual record of residence. Weekly certified payroll reports (U.S. Department of Labor Form WH-347 or equivalent) submitted to the head of the using department in triplicate,shall identify clearly the actual residence of every employee on each submitted certified payroll. The first time that an employee's name appears on a payroll, the date that the company hired the employee should be written in after the employee's name. Full access to the contractor's and subcontractors'employment record shall be granted to the purchasing director, the head of the using department, the corporation counsel, the professional standards officer, or any duly authorized representative thereof. The contractor and subcontractors shall maintain all relevant personnel data in records for a period of at least three years after final acceptance of the work. At the direction of the using department,affidavits and other supporting documentation will be required of the contractor to verify or clarify an employee's actual address when doubt or lack of clarity has arisen. Good faith efforts on the part of the contractor to provide utilization of actual Elgin residents shall not suffice to replace the actual, verified achievement of the requirements of this section concerning the worker hours performed by actual Elgin residents. When work is completed,in the event that the city has determined that the contractor failed to ensure the fulfillment of the requirement of this section concerning the worker hours performed by actual Elgin residents or has failed to report in the manner as indicated above,the city will thereby be damaged in the failure to provide the benefit of demonstrable employment to Elgin residents to the degree stipulated in this section.Therefore,in such a case of non-compliance it is agreed that 1/10 of 1 percent(.01%),0.001,of the approved contract value for the subject contract shall be surrendered by the contractor to the city in payment for each percentage of shortfall toward the stipulated residency requirement.Failure to report the residency of employees entirely and correctly shall result in the surrender of the entire liquidated damages as if no Elgin residents were employed in either of the categories.The willful falsification of statements and the certification of payroll date may subject the contractor or subcontractors or employee to prosecution. Any retainage to cover contract performance that may become due to the contractor may be withheld by the city pending the purchasing director's determination whether the contractor must surrender damages as provided in this paragraph. Nothing herein provided shall be construed to be a limitation upon the "Notice of Requirements for Affirmative Action to Ensure Equal Employment Opportunity, Executive Order 11246" and "Standard Federal Equal Employment Opportunity, Executive Order 11246", or other affirmative action required for equal opportunity under the provisions of the subject contract. "' - 3 - C. In addition to assessing the monetary damages stipulated in subsection B hereof,the purchasing director may, in lieu of declaring the contractor to be a non-responsible bidder,require the contractor to post a surety bond or other appropriate security in an amount representing ten percent of the approved contract value for subsequent contracts on which the contractor bids,which the contractor shall agree to forfeit in its entirety in the event that full compliance with the requirements of this section is not achieved during the performance of any future contract that the contractor enters with the City of Elgin. D. Any person who is employed in a construction project subject to the provisions of this section who knowingly supplies false information concerning his or her residence shall be subject to a fine of not less than$500.00 for each offense. Any person found to have violated this section shall also be barred from employment on any construction project subject to this section for a period of five years." Section 2. That Chapter 5.08 of the Elgin Municipal Code, 1976, as amended, entitled "Source Selection;Competitive Sealed Bidding"be and is hereby further amended by adding a new Section 5.08.180 thereto entitled"Construction Contracts-Apprentice Utilization",to read as follows: "5.08.180: Construction Contracts-Bid Incentive For Apprentice Utilization: A. For purposes of this section only the following definitions apply: "Apprentice"means any person who is sponsored into an apprenticeship training program by a contractor and who is an actual resident of the City of Elgin as defined in Section 5.08.170. The contractor's apprenticeship training program must be approved by and registered with the United States Department of Labor, Office of Apprenticeship and Training Programs, or be reasonably equivalent to such programs. "Bid incentive"means an amount deducted,for bid evaluation purposes only,from the total bid price that is attributable to labor costs, in order to calculate the bid price to be used to evaluate the bid on a competitively bid construction project. "Earned credit" means the amount of the bid incentive allocated to a contractor upon completion of a construction project in which the contractor met or exceeded his or her goals for the utilization of apprentices in performance of the total labor hours performed under the contract. "Earned credit certificate" means a certificate issued by the purchasing director evidencing the amount of earned credit a contractor has been awarded. "Labor hours" means the total hours of workers receiving an hourly wage who are directly employed at the work site. "Labor hours"shall include hours performed by workers employed by the contractor and all subcontractors working at the work site. "Labor hours" shall not include hours r - 4 - worked by non-working foremen, superintendents, owners and workers who are not subject to prevailing wage requirements. B. 1. For any city construction contract advertised after the effective date of this ordinance having an estimated contract value of$100,000.00 or more, and where not otherwise prohibited by federal,state or local law,the purchasing director shall allocate to any qualified bidder the following bid incentive for utilization of apprentices in performance of the total labor hours performed under contract. Total Labor Hours Performed by Apprentices Bid Incentive 5 to 10% 1/2% of bid price 11 to 15% 1% of bid price The bid incentive shall be calculated and applied in accordance with the provisions of subsection B2. The bid incentive is used only to calculate an amount to be used in evaluating the bid. The bid incentive does not affect the contract price. 2. Upon the completion of a contract subject to this section, a contractor may apply to the purchasing director for earned credits if the contractor met or exceeded his or her apprentice utilization goals established in the contract. If the purchasing director determines that the contractor has successfully met his or her apprentice utilization goals,the purchasing director shall issue an earned credit certificate that evidences the amount of earned credits allocated to the contractor. The contractor may apply the earned credits as the bid incentive for any future construction project, contract bid of equal or greater dollar value. The earned credit certificate is valid for twelve months from the date of issuance and shall not be applied towards any future contract bid after the expiration of that period. C. The contractor shall maintain accurate and detailed books and records necessary to monitor compliance with this section and shall submit such reports as required by the purchasing director or the head of the using department. Full access to the contractor's and subcontractor's records shall be granted to the purchasing director, the head of the using department, the corporation counsel, the professional standards officer, or any duly authorized representative thereof. The contractor and subcontractors shall maintain all relevant records for a period of at least three years after final acceptance of the work. D. The purchasing director is authorized to adopt, promulgate and enforce reasonable rules and regulations pertaining to the administration and enforcement of this section." r - 5 - • . Section 3. That all ordinances or parts of ordinances in conflict with the provisions of this ordinance be and are hereby repealed to the extent of any such conflict. Section 4. That this ordinance shall be in full force and effect upon its passage and publication from and after April 1, 2013. David J. ■lryor Presented: February 27, 2013 Passed: February 27, 2013 Omnibus Vote: Yeas: 6 Nays: 0 y"C„„ ECG Recorded: February 27, 2013 Published: February 29, 2013 • to• Attest: _ s ";ef - ; ° -LGiAti .,, Kimberly Dewis, Ci Clerk _ 6 - r