HomeMy WebLinkAboutAgenda Report - January 19, 2011 I-01*1
AGENDA ITEM
•. CITY OF LODI
COUNCIL COMMUNICATION
•' TM
AGENDA TITLE: Provide Staff Direction Regarding Drafting Local Hiring Ordinance
MEETING DATE: January 19,2011
PREPARED BY:, City Attorney's Office
RECOMMENDED ACTION: Provide staff direction regarding drafting local hiring ordinance.
BACKGROUND INFORMATION: The City Attorney's office was asked by Mayor Pro Tempore
Mounce to research and present initial options for a local hiring
ordinance. It is important to recognize at the outset however, that
there are a number of legal impediments to the most direct form of a local hiring program: simply
requiring contracts to be awarded only to businesses located in the city, or businesses that have a
specified percentage of employees residing in the city.
There are a number of legal obstacles to such ordinances. Public Contracts Code Section 20162
requires General Law cities such as Lodi to award Public Works contracts (generally meaning the
construction, repair, or improvement of a public building, or public infrastructure) to the lowest bidder.
The Code makes no exception based on a preference for local residents. Moreover, a number of courts
have concluded that local hiring ordinances may violate the Equal Protection Clause, the Commerce
Clause of the U. S. Constitution, and the California Constitution's right to work and travel. (UnitedBldg &
Construction Trades v. City of Camden 79 L.Ed 2d 249 (1984) and Cooperrider v. Civil Service
Commission 97 Cal App 3d 495 (1979).)
The Charter City of San Francisco's local hiring ordinance survived constitutional challenge however,
because it was allegedly designed to remedy the competitive disadvantages faced by businesses housed
in San Francisco (namely high cost) and not by a general desire to favor local residents over those
outside the City and County of San Francisco. (Associated General Contractors v. City and County of
San Francisco 813 F. 2d 922 (9th Cir. 1987).
To address these ehaiienges some cities Rave adopted ordinances that require good -faith efforts by
contractors to hire workers who reside locally. Typically these ordinances do not require a quota, but
instead operate similarly to the Disadvantaged Business Outreach requirements frequently imposed as a
condition of federal funding and familiar to many large-scale contractors. Simply put, a contractor and its
subcontractors are required to advertise locally in an effort to hire local workers for the public project, and
are required to supply evidence that it has done so. Examples of such programs from Pasadena and
Stockton are attached as exhibits A and B.
Given Lodi's smaller population, staff requests direction regarding both the goal percentage for local hires
and the definition of local residents. It may be unrealistic to assume that Lodi alone has a sufficient
supply of plumbers, framers, masons and other trades to supply 50 -percent of the work force for a major
public project. It is unknown whether a number of contractors that would commonly be considered local,
such as A.M. Stephens, F&H Construction, Ford, DSS, and Diede Construction, employ a sizeable
number of local workers. One alternative is to broaden the definition of local resident to San Joaquin
APPROVED:
Konradt Bartlam, City Manager
County, or another geographic area. Informal discussions with employees of these firms suggest that
between 20 and 40 percent of their workers actually reside in Lodi and most felt they would have a hard
time finding sufficient workers residing in Lodi to meet a 50 -percent goal. At this stage, staff suggests
that Council first give direction regarding whether it desires to pursue a local hiring preference. If Council
does want to pursue the ordinance, staff recommends Council direct Public Works, Electric Utility, and
the City Attorney's office to conduct open meetings with the construction industry. The meetings will be
intended to explore concerns regarding the ordinance to insure that however it is ultimately crafted it
operates effectively. Staff will then return with further recommendations if Council desires to pursue the
ordinance.
FISCAL IMPACT: Not applicable.
FUNDING AVAILABLE: Not applicable.
EXHIBIT A
ARTICLE 15 LOCAL WORKFORCE UTILIZATION PLAN
§ 15.1 Objective
§ 15.1.1 The Pasadena community is funding the City Hall Seismic Retrofit Project and the City
wishes to provide all local subcontractors, businesses and residents the opportunity to
participate in the renovation of the City Hall building. The purpose of the Local Workforce
Utilization Plan is to communicate the objectives that the Contractor is expected to achieve and
procedural requirements which are considered a minimum. The Contractor is to develop and
coordinate proactive outreach programs to ensure that local residents, subcontractors and
businesses are informed and involved in the ongoing procurement, employment and
construction opportunities on the Project. The Local Workforce Utilization Plan focuses on three
program goals: 1) local hiring, 2) local business participation through supplying goods and
services, and 3) local workforce development. The Contractor and the City will mutually
establish goals for local hiring which the contractor shall make every good faith effort to meet.
§ 15.1.2 Local Workforce Utilization and Hiring
GOAL: Compile a workforce that hires from the tremendously talented and diverse Pasadena
community. The City and the Contractorshall establish a goal for local hiring that is based upon
the types of skills needed to complete the project.
.1 Program Requirements: Local Workforce Utilization Plan work efforts are to
include, but are not limited to:
a. Contractor/subcontractor will prepare a monthly workforce utilization
showing the employees' name, hours worked, trade, and residence.
Contractor will prepare a monthly summary report for cumulative
workforce for entire project.
b. Contractor/subcontractor will notify, in writing, local unions and/or
employment organizations, as appropriate, of available positions and
request referral of local applicants.
c. Contractor/subcontractor will maintain a list of all applicants, their address
and interview result.
.2 The distribution of outreach information shall include, but not be limited to the
following locations/groups:
a. Chamber of Commerce
b. African American Chamber of Commerce
c. NAACP
d. Urban League
e. Latinos for Economic Awareness and Development
f. Career Services One Stop Center
g. Neighborhood Connections
h. Church Network
i. Libraries/Community Centers
j. Local Construction Material Stores
k. Pasadena Women at Work
L. Pasadena Armenian Community Center
§ 15.1.3 Local Business Participation
GOAL: Purchase goods and materials from local suppliers where available and utilize local
subcontractors in the performance of the work. City and Contractor to establish a target goal
Attachment A, Page 1 City Attorneys Department Annual Conference
Special Topics in PublicWorks Contracting: League of California Cities
Local Hiring, Living Wages and Public Works Labor issues September6-8, 2006
based upon a review of goods and services utilized on the project for which local companies
and suppliers exist.
.1 Program Requirements: Local Workforce Utilization Plan work efforts are to
include, but are not limited to:
.1 A minimum of three (3) Business Opportunities Fairs (BOF) are to be
conducted from the date of the Notice to Proceed through the duration of the
project. The first BOF is to be initiated within two weeks following the date of
the Notice to Proceed and shall include, but not be limited to the following:
a. The BOF will be held at a convenient community facility.
b. The BOF will provide information to businesses on subcontract scopes of
work and bid requirementsthat will be available at the Project.
c. The Contractor will provide pre-bid forms to be completed and returned to
the Contractor for input into the database.
e. Require attendance of all major subcontractors, project staff, and
members of the Contractor estimating and purchasing teams.
f. Contractor staff attending the BOF will be prepared to have one-on-one
discussions with individuals regarding scopes of work, proposal
requirements, bonding information and financing information.
g. The BOF is to be advertised in local newspapers, local radio stations,
trade and focus publications and the Project website. Information
advertised will include but is not limited to Project website, brief
information about the Project, direct phone number, mailing address and
fax number for solicitation of bids. Advertisements will be completed prior
to each major construction activity (e.g., excavation, foundation,
mechanical, electrical, plumbing).
.2 The Contractor will work in conjunction with local community organizations,
including MBENVBEIDBEILBEIOBE to identify local subcontractors with
interest in the Project. Local contractors identified are to be added to the
Contractors master database.
.3 Contractor will develop a list of work under $100,000 for work that
subcontractors and businesses in the local database could be competitive.
.4 Using the City's outreach data as a starting point, Contractor is to create and
maintain a master database of qualified individuals, subcontractors and
businesses throughout the duration of the Project. The database is to include
current information regarding local Pasadena individuals, subcontractors
bidding the Project, contact names, phone and fax numbers, addresses and
other information collected on the Subcontractor Information Form and the
Construction Outreach Contact Sheet.
.5 The Contractor is to provide a Subcontractor's Handbook for all interested
subcontractors and suppliers. The handbook should include, but not be limited
to:
a. Descriptions of subcontractor requirements
b. Calendar of local outreach program dates
c. Local Business certification process
d. Anticipated bid and purchase schedules
e. Requisition/payment procedures
f. Bonding seminars
g. Regional resources for business assistance
h. Contractors'associations
6 The CONTRACTOR will provide assistance to local Pasadena companies,
including MBENVBEIDBEILBEIOBE firms, relative to obtaining plans and
Attachment A, Page 2 City Attorneys Department Annual Conference
Special Topics in Public Works Contracting: League of California Cities
Local Hiring, Living Wages and Public Works Labor Issues September6-8, 2006
specifications, reviewing sub -bid requirements, and referrals for bonding and
insurance requirements.
§ 15.1.4 Local Workforce Development
GOAL: Provide an opportunity for interested Pasadena residents to learn how to obtain
positions in the construction trades.
.1 Program Requirements: Local Workforce Utilization Plan work efforts are to
include, but are not limited, to conducting seminars which include representatives
from groups such as construction trade organizations, California Department of
Apprenticeship Standards, subcontractors, trade schools, etc. as a means of
informing interested residents as to how to begin a career in construction.
§ 15.1.5 Outreach Coordinator
Contractor shall provide a full-time, onsite Outreach Coordinator (Coordinator) for the Project,
whose principal duty is to facilitate local community participation in the Project and to provide
public outreach. The job shall commence within thirty (30) days of Notice to Proceed, and shall
last for the duration of the Project. The duties and responsibilities of the Coordinator shall
include, but not be limited to, the following:
.1 Be responsible for monitoring and coordinating overall compliance of the
Contractor, subcontractors and suppliers, including, but not limited to:
.1 Attendance at construction meetings and at local outreach events.
.2 Liaison with the City staff and designated City representatives contracted to
document compliance to outreach efforts.
.3 Facilitationof meetingswith Contractorand subcontractors.
.4 Conducting site surveys and inspections.
.2 Perform evaluating and reporting duties:
.1 Review and evaluate the current and projected work force for the Project.
Prepare reports on said current and projected staffing data to be filed monthly,
in a timely manner, to City staff.
.2 Work with the Contractor and subcontractors to resolve complaints of
employment discrimination, including sexual harassment. If said complaints
cannot be resolved at this level, prepare written report for submission to
appropriate governmental agencies.
.3 Should the coordinator not be female, he will designate a female
ombudsperson on the Contractor's staff to receive reports of sexual
harassment by female employees.
.3 Work with Contractor, subcontractors, unions, apprenticeship groups, and locally
based minority and female groups in recruitment of potential employees.
.1 Coordinator shall try to ensure that public noticing of job referrals and
opportunities is announced to locally based groups at least 24 hours in
advance of intended hiring.
.2 The distribution of flyers and noticing information shall include, but not be
limited to the following locations/groups:
a. Chamber of Commerce
b. African American Chamber of Commerce
c. NAACP
d. Urban League
e. Latinos for Economic Awareness and Development
f. Career Services One Stop Center
g. Neighborhood Connections
h. Church Network
Attachment A, Page 3 City Attorneys Department Annual Conference
Special Topics in Public Works Contracting: League of California Cities
Local Hiring, Living Wages and Public Works Labor Issues September6-8,2006
i. Libraries/Community Centers
j. Local Construction Material Stores
k. Pasadena Women at Work
L. Pasadena Armenian Community Center
.4 Maintain records of all walk-in referral applications.
.5 Develop and implement equal opportunity training programs that meet State
apprenticeship/trainee requirement for number of trainees versus journeypersons
for each trade which relate to the Project
.6 Review and report on changes of subcontractors.
.7 Coordinate with City staff and designated City representatives for provision to
Contractor and subcontractors training and information regarding discrimination and
sexual harassment.
.8 Coordinate with City staff and designated City representatives on corrective action
deemed necessary for complaints of discrimination and sexual harassment related
to the Project.
.9 Coordinate monthly submittal to City staff and designated City representatives of
invoices for progress payments to local Pasadena business.
.10 Compile and maintain accurate records of meetings, solicitations, advertisements,
and awards so that upon request these will be provided to Owner.
.11 Prepare a final report for the Project, containing:
,1 A summary of efforts made by Contractor and subcontractors during the
Project in support of equal opportunity.
.2 An evaluation of the successes and failures of those efforts toward compliance
with meeting stated goals.
.3 Submit this report to City staff and designated City representatives by the end
of the Project.
.12 Represent the Contractor at governmental meetings to discuss outreach activities,
evaluations, and results of the Local Workforce Utilization Plan.
.13 Qualifications of the Outreach Coordinator shall be as follows:
.1 Possession of a baccalaureate degree from an accredited university or
college, preferably with main course work in personnel, public, or business
administration, social sciences, or a closely related field.
.2 At least three years of professional experience, within the past five years, in an
equal opportunity program with major duties in at least three of the following
activities.
a. Preparingwork force studies and utilization plans.
b. Preparing employment-related outreach recruitmentof targeted groups.
c. Coordinating training programs for managers and employees in the areas
of Equal Opportunity Employment.
d. Coordinating training programs for managers and employees in the areas
of local hiring, discrimination and/or sexual harassment.
e. Investigating, evaluating, and reporting on findings of employment
discrimination and complaints of sexual harassment, as well as mediating
corrections of identified valid complaints.
.3 Be familiar with and credible to a majority of locally based representative
groups.
.4 Additional experience as described above may be substituted for the degree
on a year -for -year basis.
.5 Fluency in other languages is desirable but not necessary.
.6 Application is made by written statements which contain the following:
Attachment A, Page 4 City Attorneys Department Annual Conference
Special Topics in Public Works Contracting: League of California Cities
Local Hiring, Living Wages and Public Works Labor Issues September 6-8,2006
a. Identifying information such as full legal name, current address, date of
birth, driver's license number and state of issue, or California Identification
Card number.
b. Specific details of the qualifying experience, including names and current
telephone numbers of reference individuals.
c. Copies of all above -indicated degrees.
d. Coordinating training programs for managers and employees in the areas
of discrimination and/or sexual harassment.
e. Investigating, evaluating, and reporting on findings of employment
discrimination and complaints of sexual harassment, as well as mediating
corrections of identified valid complaints.
f. Resume shall be submitted to City staff.
§ 15.1 .6 Local WorMbrce Utilization Plan
Contractor shall, at a minimum, do the following:
.1 Contractor to develop a Local Workforce Utilization Plan which incorporates the
detailed elements referenced in items A. through D. mentioned above.
.2 Contractor to prepare and submit such work plan to the City and or City
Representative for comment and approval.
.3 Local Workforce Utilization Plan should be submitted to the City within 30 days after
the Notice to Proceed.
.4 Contractor is to prepare monthly status reports which outline the results of the
outreach work effort to date, with detailed information on the programs and level of
attendance at each.
.5 Contractor to acknowledge that modifications to the outreach work plan will be
required as the Project progresses and until target goals are achieved.
AttachmentA, Page 5 CityAttomeys DepartmentAnnual Conference
Special Topics in Public Works Contracting: League of California Cities
Local Hiring, Living Wages and Public Works Labor Issues September6-8, 2006
3.68.095<em class="hit">Local</em> employment—Public works contractors. Page 1 of 4
EXHIBIT B
Stockton Municipal Code, Charter, and Civil Service Rules
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Title 3 REVENUEAND FINANCE
Chapter 3.68 BIDDING, CONTRACTING AND PURCHASING PROCEDURES
Article 1. General Provisions
remove hightightingd
3.68.095 Local employment—Public works contractors.
A. Findings. The City Council of the City of Stockton hereby finds that:
1. Unemployment rates in Stockton have been consistently higher than in California as a whole.
Statistics indicate that the higher unemployment level in Stockton correlates to a higher number of families
living in poverty and to a higher crime rate.
2. Due to the lack of local jobs, much of the work force residing in Stockton is forced to commute long
distances to find work, causing increased traffic on state highways, increased pollution, increased use of gas and
other fuels and other serious environmental impacts.
3. Because of the shortage of localjobs, many residents of Stockton must leave for work very early in
the morning and return late in the evening, often leaving children and teenagers alone and unsupervised during
the hours between school and the parents return from work outside the area.
4. Absentee parents and unsupervised youth can result in increased problems for families, communities
and the City as a whole, including, but not limited to, increased crime, more frequent and more serious injuries,
poor homework accomplishments, failing grades and increased high school drop out rates.
5. The City Council of the City of Stockton has concluded that the City needs an expanding
employment base and that a policy that encourages contractors who receive City contracts or subsidies to hire
residents of Stockton will benefit the City as a whole.
6. Such policy will provide job opportunities to Stockton residents, expand the City's employment
base, lessen the drain on public assistance resources and reduce the impacts on the environment caused by high
unemployment and long commuting times to jobs outside the area.
B. Declaration of Policy and Purpose.
1. It is the policy of the City of Stockton to ensure full and equitable opportunities for Stockton
residents to participate in the employment opportunities that arise from public works contracts.
2. It is also the policy of the City of Stockton to increase the number of employed persons living in the
City of Stockton in an attempt to counteract the grave economic and social ills associated with the higher
unemployment levels that exist within the City.
3. In furtherance of this policy the City of Stockton has established a local hiring program to
encourage the hiring and retention of Stockton residents for the work to be performed under public works
contracts.
C. Scope and Goals.
1. Unless such a provision would conflict with a State or Federal law or regulation applicable to a
particular contract for public works or improvements, all City contracts for public works or improvements of
estimated value or City subsidy of $100,000.00 or more shall contain provisions pursuant to which the contractor
promises to make a good faith effort, with the assistance of local labor union hiring halls or community
organizations designated by the City to employ qualified individuals who are, and have been for one year prior to
the effective date of the contract, residents of Stockton in sufficient numbers so that no less than 50 percent of
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the contractor's total construction work force, including any subcontractor work force, measured in labor work
hours, is comprised of Stockton residents.
2. Unless such provision would conflict with a State or Federal law or regulation applicable to a
particular contract for a public works project, all City contracts for a public works project referenced in
subsection (1) shall contain provisions pursuant to which each contractor or subcontractor shall make a good
faith effort to employ apprentices who are enrolled in and participating in a viable apprenticeship program
serving the San Joaquin Valley and approved by the State Department of Apprenticeship Standards. This
apprenticeship requirement shall apply for each apprenticable craft or trade in which the contractor employs
workers in performing any of the work under the contract.
(3) If, in response to a written request made at least 48 hours (excluding Saturday, Sunday and holidays)
before the date on which one (1) or more apprentices are required, an apprenticeship program(s) does not
dispatch any apprentice or dispatches fewer apprentices than requested to a contractor (that has agreed to employ
and train apprentices in accordance with California LaborLode Section 1777.5) within 72 hours of such request
(excluding Saturday, Sunday and holidays), that contractor shall be considered in compliance with the apprentice
employment requirement for that trade or craft for a 90 -day period from the request date, provided the contractor
employs those apprentices who are dispatched. Where there is more than one (1) viable apprenticeship program
for that trade or craft serving the San Joaquin Valley, a contractor, that is not a participant in or an affiliate of an
apprenticeship program and receives fewer apprentices dispatched than requested, shall not be considered in
compliance with the apprentice employment requirement unless the contractor has made a written request for the
dispatch of apprentices from at least two (2) viable apprenticeship programs. A contractor, that is a participant in
or an affiliate of an apprenticeship program, shall make dispatch requests to the program in which it is affiliated
or participating.
4. In the event that no viable apprenticeship program exists for a particular craft or trade, the contractor
shall be exempt from the requirements of this section with regard to that craft or trade.
5. A contractor employing apprentices pursuant to this section shall employ apprentices in a ratio of
not less than one (1) apprentice for each five (5) j ourneymen in the apprenticeship craft or trade classification
that are employed on the public work contract unless to do so would result in apprentice employment in ratios
below the minimum ratios prescribed by California Labor..C.ode Section 1777.5 in which case apprentice
employment shall be at least in the ratios prescribed by California Labor ..Code Section 1777.5.
6. This section shall not be construed so as to exempt a contractor from any otherwise applicable
requirement imposed upon the contractor by the California Labor Code.
D. Good Faith Effort. A bidder or contractor who fails to meet the goal of having 50 percent of its work
force be residents of Stockton shall, nevertheless, be deemed to have made a "good faith effort" to hire sufficient
numbers of residents of Stockton if, prior to execution of the contract with the City, six (6) or more of the
following employee recruitment activities have been undertaken and documented:
1. Placing a valid j ob order for existing and projected position vacancies with the local office of the
State Employment Development Department, for no less than 10 consecutive calendar days;
2. Placing a valid j ob order for existing and projected position vacancies with Worknet of San Joaquin
County, for no less than 10 consecutive calendar days;
3. Advertising existing and projected position vacancies, j ob informational meetings, j ob application
workshops, j ob application centers and j ob interviews by posting notices which identify the positions to be filled,
the qualifications required, and where to obtain additional information about the application process, in
conspicuous local authorized public places, including but not limited to the City Hall, schools, post offices,
libraries, and senior citizens' centers;
4. Conducting a j ob informational meeting to inform the community of employment opportunities of
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the contractor, to be held at a City or other public facility (may be combined with other contractors);
5. Providing ongoing assistance to Stockton residents in completing job application forms;
6, Conducting a j ob application workshop to assist the community in applying and interviewing for
jobs in the contracting industry, to be held at a City or other public facility (may be combined with other
contractors);
7. Establishing a j ob application center located in the City of Stockton, where j ob applications may be
obtained, delivered to and collected;
8. Conducting j ob interviews within 10 miles of the location designated for contract performance;
9. Advertising valid existing and projected position vacancies through the local media, such as
community television network, local newspapers of general circulation, and trade papers or minority focus
newspapers;
10. Telephone solicitation of known potential local subcontractors or employees;
11. Any other means of obtaining employees who are residents of Stockton that are reasonably
calculated to comply with the goals of this section.
E. Required Documentation.
1. The contractor shall keep, and provide to the City, on standardized forms acceptable to the City, an
accurate record showing the name, place of residence, hours employed and per diem wages and benefits of each
person employed by the contractor, and the contractor's subcontractors, on the specific public works project,
including full-time, part-time, permanent and temporary employees.
2. The contractor shall keep, and provide to the City, on forms acceptable to the City, an accurate
record documenting the contractor's good faith efforts to comply with the local resident employment and
apprentice employment provisions of this section. Said records shall include: a listing by name and address of all
local recruitment sources contacted by the contractor; the date of the local recruitment contact and the identity of
the person contacted; the trade and classification and number of employment referrals requested; the number of
local residents employed as a result of the contact; and the identity and address of the person(s) employed
pursuant to the contact.
F. Forms Submitted Under Penalty of Perjury. All forms required under this section shall attest to the
veracity of the information set forth therein and shall be submitted under penalty of perjury.
G. Irresponsible Bidder Declaration. Should any contractor or subcontractor fail to abide by the good
faith local resident employment and apprentice employment provisions of this section, the contractor or
subcontractor may be declared by the City to be an irresponsible bidder on future projects pursuant to Section
3.72. 010 of this code.
H. Binding on Subcontractors. The good faith local resident employment and apprentice employment
provisions of this section shall bind the contractor both with respect to persons employed directly by the
contractor and to all persons employed by the contractor's subcontractors. The contractor shall be responsible for
assuring that all subcontractors document said compliance by submitting, and making available to the City, the
forms required by this section.
I. Definitions. As used in this section, the following terms shall have the following definitions:
"Contract for public works or improvement" means any contract with the City for construction, alteration,
demolition or repair work.
"Qualified individual" means an individual who is in a certified State or Federally approved apprenticeship
program in an applicable trade or has become ajourneyperson in his or her applicable trade.
"Resident of Stockton" means an individual who has been domiciled, as defined by Section 200(b) of the
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California Electians.C.ode., within the boundaries of Stockton for at least one (1) year immediately preceding the
date of the award of contract by the City and who can verify his or her domicile upon request of the contractor or
City by producing documentation such as a rent/lease agreement, telephone and utility bills or payment receipts,
a valid California driver's license or identification card, and/or any other similar, reliable evidence that verifies
that the individual is domiciled within Stockton. For the purposes of this section, the following Zip Code areas
are considered to be within Stockton: 95202,95203,95204,95205,95206,95207,95209,95210,95212,95215
and 95219.
"Viable apprenticeship program" means an apprenticeship program approved by the California
Department of Apprenticeship Standards that has graduated apprentices annually for at least the past five (5)
years. Any apprenticeship program that has been approved for less than 10 years shall be deemed a viable
apprenticeship program provided that, following the fifth anniversary of its approval by the California
Department of Apprenticeship Standards, it graduates apprentices each subsequent year.
I Contracts — Bid Documents — Subcontracts.
Contracts and bid documents shall incorporate this section by reference and shall provide that the
failure of any contractor or subcontractor to comply with any of its requirements shall be deemed a material
breach of the contract or subcontract.
2. All subcontracts shall expressly acknowledge the City's status as a third party beneficiary to that
subcontract and further expressly acknowledge that the City, as a third party beneficiary, shall have the right to
enforce the provisions of this section with regard to that subcontract or seek remedies available under this section
should a party to the subcontract fail to comply with any of the provisions of this section that apply to the
subcontract.
3. Contracts and bid documents shall require bidders, contractors and subcontractors to maintain
records necessary for monitoring their compliance with this section.
K. Exceptions. The provisions of this section shall not apply:
1. Where the City determines that the contract is necessary to respond to a declared emergency which
endangers the public health, welfare or safety and there is no time to apply the provisions of this section.
2. To City construction contracts or portions thereof, wherein the work is of a highly specialized nature
as determined by the City Council when the contract specifications are approved. (Ord. 011-09 § 1 , eff. 10-01-
09)
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J.0
f
Randi Johl
From: Randi Johl
Sent: Wednesday, January 19,20111:11 PM
To: Randi Johl
Subject:SRBX-Item 1-01- Strongly Opposed
From: Scott Whyte [mailto:scott@sacregionbx.com]
Sent: Wednesday, January 19,2011 12:38 PM
To: Alan Nakanishi; Phil Katzakian; Larry Hansen; JoAnne Mounce; Bob Johnson; Randi Johl
Subject: SRBX Item I-01- Strongly Opposed
TO: Honorable Mayor Johnson and Councilmembers
FROM: Sacramento Regional Builders Exchange
DATE: January 19,2011
RE: Item 1-01- Strongly Opposed
The Sacramento Regional Builders Exchange (SRBX), a commercial construction trade association representing over
3,000 member businesses, strongly opposes the drafting of a 'local hire Ordinance" in the City of Lodi.
We agree that hiring local people is a noble goal, and an objective our organization works towards every day.
However, trying to accomplish this goal i n this manner has many drastic and serious flaws, which City Staff
acknowledges within its report. Mandating construction companies to hire 50% of their workers locally is a high public
safety risk. I n a City of relatively small population, companies will be forced to hire residents who do not have the
qualifications or safety trainingjust to meet a city imposed quota.
The employing of people based on their residence and not the content of their character/qualifications is of violation of
the United States Constitution (Equal Protection Clause, Commerce Clause). Not only will this practice invite a plethora
of expensive law suits, but it will also drive up costs on projects because construction firms will be strictly limited from
hiring the best available workforce. The outreach City Staff did with local construction companies underlines this
concern.
We suggest a strong alternative that accomplishesthe same goal, a "Regional Bid Preference". Regional Bid Preference
is based on 'local regional companies" na 'local individual workers". Secondly, it broadens the region to include
multiple counties to ensure the City obtains enough qualified companies and workers for all biddingjobs. This will
eliminate the public safety risk, cost less and keep tax dollars/wages local, and help employ workers within the region.
We urge Honorable Councilmembersto reject the formation of a restrictive local hire ordinance. However, see the
pursuit of a "regional bid preference" as a favorable alternative.
Thank you for your time and consideration.
Sincerely,
Scott Whyte
Political Director
Sacramento Regional Builders Exchange
P: (916) 442-8991
F: (916) 446-3117
01/19/2011