Legislative Matter

Miami-Dade Legislative Item
File Number: 140423

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Clerk's Official Copy

File Number: 140423

File Type: Ordinance

Status: Adopted

Version: 0

Reference: 14-26

Control: Board of County Commissioners

File Name: LOCAL HIRING GOAL FOR CONSTRUCTION PROJECTS

Introduced: 2/25/2014

Requester: NONE

Cost:

Final Action: 3/4/2014

Agenda Date: 3/4/2014

Agenda Item Number: 7E

Notes:

Title:

ORDINANCE AMENDING CHAPTER 2, ARTICLE I, SECTION 2-11.17 OF THE CODE OF MIAMI-DADE COUNTY FLORIDA; ESTABLISHING RESIDENTS FIRST TRAINING AND EMPLOYMENT PROGRAM TO EXPAND SKILLS TRAINING AND EMPLOYMENT OPPORTUNITIES FOR COUNTY RESIDENTS ON BUILDINGS OR PUBLIC WORKS PROJECTS FUNDED COMPLETELY OR PARTIALLY BY MIAMI-DADE COUNTY, OR PRIVATELY FUNDED PROJECTS ON COUNTY OWNED LAND; REQUIRING GREATER ACCOUNTABILITY OF PUBLIC CONTRACTORS AND SUBCONTRACTORS REGARDING EFFORTS TO PROMOTE LOCAL HIRING AND TRAINING; PROVIDING SEVERABILITY, INCLUSION IN THE CODE, AND AN EFFECTIVE DATE [SEE ORIGINAL ITEM UNDER FILE NO. 140303]

Indexes:	CONSTRUCTION
	PROJECT

Sponsors:	Jean Monestime, Prime Sponsor
	Barbara J. Jordan, Co-Sponsor

Sunset Provision: No

Effective Date:

Expiration Date:

Registered Lobbyist:

None Listed

Legislative History
Acting Body	Date	Agenda Item	Action	Sent To	Due Date	Returned	Pass/Fail

Board of County Commissioners	3/4/2014	7E	Adopted				P
REPORT:	First Assistant County Attorney Abigail Price-Williams read into the record the title of the foregoing proposed ordinance. Chairwoman Sosa noted although this was not a public hearing, she would allow the persons who requested to be heard on the foregoing proposed ordinance to speak. She called the following names, but the persons were no longer present: - Mr. Damien Gregory; - Mr. Oran Lindquist; and - Ms. Rossana Castro. Mr. Domingo Dominguez, 19931 Kingston Drive, Cutler Bay, appeared before the Board members to speak in support of the foregoing proposed ordinance. Commissioner Monestime noted for clarification that the purpose of this proposed ordinance was to establish a goal for local hiring on projects supported by the County. He clarified that there was no substitute item or amendment related to this proposal, other than the removal of the apprenticeship at the committee level. Hearing no further question or comments, the Board members proceeded to vote on the foregoing proposed ordinance, as presented.

County Attorney	2/25/2014		Assigned	David S. Hope		2/25/2014

Economic Development & Port Miami Committee	2/13/2014	1F2 Substitute Amended	Forwarded to BCC with a favorable recommendation with committee amendment(s)				P
REPORT:	Chair Bell opened the public hearing; the following persons appeared in support of the foregoing ordinance: Roseanna Castro 6800 Bird Road #116, Miami Florida Dr. Waldo Castro 6800 Bird Road #116 Miami Florida, representing Together We Can initiative (Director) and Community Relations Director of Communities in Action. Matthew Land, 14 NE 1st Avenue, Miami Florida Carlos Marie 12208 SW 194TH Drive, Miami Florida Oren Lidquist 9387 SW 185th Street, Cutler Bay Florida, representing The Grey Panthers. Sharon Rolle 590 NE 96th Street, Miami Florida Cynthia Hernandez 11200 SW 8th Street, Miami Florida, representing Florida International University Research Institute on Social and Economic policy (Senior Researcher). Willie Newkirk 1141 NW 55th Terrace, Miami Florida Ken Knight 7501 NW 7th Avenue, Miami Florida Christopher Hodgkins 1717 N Bayshore Drive, Miami Florida Carolyn Howard 211 NE 51st Street Apt. 1, Miami Florida Richard Love 20625 NW 33rd Court, Miami Florida Theresa Brown 4929 NW 17th Avenue, Miami Florida Winnie Tang 8401 SW 107th Avenue, Miami Florida Eufaula Frazier 4929 NW 17th Avenue, Miami Florida Melissa Sturgis 419 NW 8th Street, Miami Florida Manuel Gutierrez 12310 SW 259th Street, Miami Florida Roy Oscar Toman 618 Minorca Avenue, Miami Florida Jeff Green 20902 SW 118th Court, Miami Florida Richi Fernandez 1801 SW 23rd Street, Miami Florida Henry Brown 1751 NW 166th Street, Miami Florida Larry Young 821 NW 54th Street, Miami Florida Bill Riley 1657 NW 17th Avenue, Miami Florida Madame Renita Holmes 5800 NW 7TH AVE The following person(s) appeared and spoke in opposition to the foregoing proposed ordinance: Cara Bowen, Vice President, Government Affairs Associated Builders and Contractors Florida East Coast Chapter 3730 Coconut Creek Parkway, Coconut Creek Florida, noted she was opposed to this ordinance in its current version. She inquired whether the training mandate had been removed and whether companies would be expected to hire local workforce and provide training out of their pockets. Ms. Bowen noted that this ordinance would mean increased costs to the county and the supplement speaks to that as well as an increase to the companies; the companies would incur more paperwork in order to conduct searches and locate employees, screen them and get them on the job will cost additional staff time and man hours, which will be worked into the cost of the projects. She asked Committee members to consider these additional costs. Ms. Bowen inquired why this was being applied to general contractors because the majority of general contractor firms in the state were construction management firms; and does not apply to people that actually work on the construction site such as laborers, skilled tradesmen; these are management positions and office staff personnel as well as engineers and architects. Ms. Bowen asked if the county was asking the companies to now look at internal office staff and replace or hire additional people if the General Contractor does not meet the 51% of the project goal. She further inquired as to why this ordinance would apply to individual companies and not the projects as a whole. Truly Burton, Executive Vice President, Florida Atlantic Building Association noted that she had the same questions that Ms. Bowen had raised. She noted that she was glad the substitute of the ordinance was revised because the first ordinance was not clear as to what the role of the General Contractor is. Ms. Burton noted inquired about the consequences for someone that was not truthful about their credentials or did not perform well on the job and whether the contractor would be penalized for dropping below 51% for these reasons. Ms. Burton suggested that the county commission make a joint effort with the Dade County School Board to review or Construction Arts High School and other types of job training. Chair Bell closed the Public Hearing. Commissioner Monestime appeared before the Committee, he explained the intent of the foregoing proposed ordinance, noting this ordinance establishes a goal for hiring residents of Miami-Dade County (MDC) for projects valued over $1 million. This would be a supplement to the Community Workforce Program known as CWP not a replacement, Commissioner Monestime pointed out that CWP would still apply for projects within the Targeted Urban Areas. He noted the intent was to ensure that when starting the most significant structural projects that the greatest beneficiaries are the residents of MDC. The larger projects were most likely to attract the attention of construction companies from outside of the county. He noted this ordinance did not in any way interfere with company’s ability to generate greater revenue or increase their profitability. Commissioner Monestime pointed out that the original version of this ordinance included provisions for developing an apprenticeship opportunity, however after reviewing the ordinance, this portion was removed. Commissioner Monestime expressed appreciation to the members of the community that came to today’s meeting to show support for this ordinance and he urged the Committee to support the foregoing ordinance. Commissioner Jordan asked the Assistant County Attorney David Hope to explain the differences between this proposed ordinance and the First Source program. She noted First Source had a 51 percent hiring goal of people from the community on county funded projects, and that the South Florida Workforce was the entity for clearance. She expressed concern that the apprenticeship portion was removed from this ordinance, noting she felt it made a difference in having the employment opportunity that people would be looking for. Assistant County Attorney David Hope noted the intent of Residents First and First Source were the same; they both were designed to provide greater opportunities to residents of MDC, requiring companies doing work within the county to hire residents. Mr. Hope explained the differences between the First Source and the Residents First programs, noting that as First Source was currently structured it only pertained to goods and services contracts, whereas Residents First impacted construction and construction related contracts or projects. Mr. Hope further explained the First Source program and the Residents First programs differences, pointing out that Community Workforce still focused on the designated target areas Commissioner Jordan noted that she was fully supportive of the foregoing proposed ordinance and requested that Commissioner Monestime look into adding an apprenticeship portion to this ordinance. She noted that she was happy to be a co-sponsor to the ordinance. Commissioner Monestime ensured Commissioner Jordan that he had not totally abandoned the apprenticeship idea and that he would eventually incorporate apprenticeship into the foregoing ordinance. Commissioner Diaz noted that he was supportive of this ordinance and inquired about the number of Community Based Organizations (CBO) in Miami-Dade County that specialized in training and job assistance. Assistant County Attorney Hope explained that the mayor was required within 90 days of the ordinance being passed to submit an implementing order for the ordinances approval. He noted the implementing order would deal with the terms of the aspirational goals, enforcement, possible sanctions, and all of the details of this ordinance. Mr. Hope pointed out that requiring a percentage of county residents has to be by law best efforts, he noted it was unconstitutional and unlawful to mandate that someone working on a county contract or on county land have a specific percentage of people. Mr. Hope said the verifiable documentation was written into the ordinance to show best efforts to enhance employment opportunities. Commissioner Diaz noted with regard to local preference this had happened before and asked Deputy Mayor Alina Hudak to find out whether the $70,000 impact fees would be absorbed by the department. Commissioner Zapata noted although this ordinance was created with good intentions, he expressed concern regarding the potential of this ordinance creating unintended consequences and not addressing the root of the problem. He noted the problem was training and the best way to approach training individuals for the workforce. Commissioner Zapata pointed out no one from Workforce Florida, or the school system was in attendance at today’s (2/13) meeting, those were the people that had the resources to work in conjunction to conduct training. He also pointed out this could be create additional costs to the county and he was not in support of the foregoing proposed ordinance. Chair Bell concurred with Commissioner Zapata’s comments regarding the ordinance creating unintended consequences. She pointed out that currently 17 layers of useless regulations existed regarding construction contracts, and expressed her concern with this ordinance creating yet another layer of paperwork and bureaucracy. Chair Bell inquired about the $70,000 cost to the county to hire someone to monitor the compliance portion of this ordinance. Responding to Chair Bell’s inquiry Deputy Mayor Jack Osterholt noted that the aforementioned figure amount of $75,000 was calculated by Office of Management and Budget (OMB) and noted that he would research this further and return with an answer to her inquiry. Chair Bell commended Commissioner Monestime and Jordan for their efforts and working with the construction industry. She noted that she would support the foregoing proposed resolution to move forward. Commissioner Jordan noted that based on her experience with First Source the contract language that was utilized originally did not include the information regarding First Source and in an effort to protect the ordinance she recommended that the Administrative Order (AO) includes contract language within the contract from the beginning so the information could be tracked. Commissioner Jordan suggested amending the foregoing proposed ordinance to incorporate language into future County Construction Contracts information regarding the requirements of the Residents First Training and Employment Program. Commissioner Monestime noted that it was not his intention to do anything that would interfere with the growth of businesses within the construction industry. He pointed out that the intent was to work with the construction industry to bring forth the best policies. Chair Bell noted that she hoped this resolution would increase job opportunities in Miami-Dade County (MDC) overall. She inquired whether the administration was aware of how many companies held County contracts but did not hire at least 51% of MDC residents. Responding to Chair Bell’s inquiry, Deputy Mayor Osterholt noted that he was unsure whether local preference hiring percentages were tracked. Commissioner Jordan explained that First Source was supposed to track local preference hiring percentages. She pointed out the reason she suggested the amendment because this was not within the contract language previously. Chair Bell noted that so many organizations received millions in federal and state funding for job training and job placement; she stated and these organizations needed to be monitored to make sure the funds were being used to provide these services. Commissioner Jordan amended the foregoing proposed ordinance to incorporate language into future County Construction Contracts information regarding the requirements of the Residents First Training and Employment Program. Hearing no further questions or comments the Committee proceeded to vote.

Legislative Text

TITLE
ORDINANCE AMENDING CHAPTER 2, ARTICLE I, SECTION 2-11.17 OF THE CODE OF MIAMI-DADE COUNTY FLORIDA; ESTABLISHING RESIDENTS FIRST TRAINING AND EMPLOYMENT PROGRAM TO EXPAND SKILLS TRAINING AND EMPLOYMENT OPPORTUNITIES FOR COUNTY RESIDENTS ON BUILDINGS OR PUBLIC WORKS PROJECTS FUNDED COMPLETELY OR PARTIALLY BY MIAMI-DADE COUNTY, OR PRIVATELY FUNDED PROJECTS ON COUNTY OWNED LAND; REQUIRING GREATER ACCOUNTABILITY OF PUBLIC CONTRACTORS AND SUBCONTRACTORS REGARDING EFFORTS TO PROMOTE LOCAL HIRING AND TRAINING; PROVIDING SEVERABILITY, INCLUSION IN THE CODE, AND AN EFFECTIVE DATE

BODY
WHEREAS, Section 2-11.16 of the Code of Miami-Dade County establishes the requirements for construction contractors bidding on public projects or private projects located on Miami-Dade County (the ''County'') owned land (collectively referred to as ''>>County<< [[Capital]] Construction Contracts''); and
WHEREAS, the County has a strong interest in promoting employment and skill training opportunities for County residents through ''>>County<< [[Capital]] Construction Contracts as such efforts help ensure a reliable source of local labor, provide economic benefits to residents and local communities, and stimulate future revenue for the County from residents through the payment of local taxes; and
WHEREAS, Miami-Dade County also has a vested interest in ensuring that >>County<< [[Capital]] Construction Contracts are successfully executed and that work on such projects is performed in a timely, safe and cost-effective manner; and
WHEREAS, major >>County<< [[Capital]] Construction Contracts require large pools of craft labor who require skill and safety training in multiple construction crafts to ensure the successful execution and delivery of such projects,
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA:
Section 1. Section 2-11.17 of the Code of Miami-Dade County, Florida, is hereby amended to read as follows:1
Sec. 2-11.17. [[Reserved.]]>>Residents First Training and Employment Program.

(1) Title. This section shall be referred to as the Miami-Dade County Residents First Training and Employment Program.

(2) Definitions. For purposes of this section the following definitions shall be effective:

(a) County<< [[Capital]]>>Construction Contracts means (i) a County contract valued in excess of $1,000,000 for the construction, demolition, alteration and/or repair of public buildings or public works, or (ii) a contract or lease valued in excess of $1,000,000 which provides for privately funded construction, demolition, alteration or repair of buildings or improvements located on County-owned land.

(b) Department means the department, agency or other party responsible for awarding a County<< [[Capital]] >>Construction Contract as designated by the County.

(c) Implementing Order (''IO'') means the implementing order developed by the Mayor or Mayor's designee and approved by this Board of County Commissioners (the ''Board'') to give effect to the provisions of this section.

(3) Program Scope:

(a) The provisions of this ordinance shall apply to County<< [[Capital]]>>Construction Contracts which are subject to Section 2-11.16 of the Code of Miami-Dade County, Florida (the ''Code''), entered into after the effective date of the ordinance by the County, and its Departments.

(b) The provisions of this Section shall be applied to reinforce and complement the provisions of Sections 2-11.16 and 2-1701 of the Code.

(4) General Program Requirements:

(a) Except where state or federal laws or regulations mandate to the contrary, all contractors and subcontractors of any tier performing on a County<< [[Capital]]>>Construction Contract shall satisfy the requirements of this Section.

(b) As a condition of submitting a bid or proposal for a County<< [[Capital]]>>Construction Contract, a general contractor, construction manager or other contractor seeking award of a contract shall submit a Responsible Contractor Affidavit with its bid or proposal.

(c) The Responsible Contractor Affidavit shall be completed on a standard form prepared by the County and shall reference the County<< [[Capital]]>>Construction Contract for which a bid or proposal is being submitted by name and contract or project number. Any agency, department, or other party responsible for awarding a County<< [[Capital]]>>Construction Contract shall require contractors to use the standard form prepared by the County.

(d) A County<< [[Capital]]>>Construction Contract shall not be executed until all requirements of this Section have been fulfilled.

(e) Prior to awarding or approving future County<< [[Capital]]>>Construction Contracts, the County shall review prior work performed by proposed contractors and subcontractors, including their compliance with the terms of the Responsible Contractor Affidavit.

(f) The County 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.

(5) Responsible Contractor Affidavit:

(a) Required Affidavit: A construction manager, general contractor or other contractor submitting a bid or proposal for a County<< [[Capital]] >>Construction Contract shall verify the following information on its Responsible Contractor Affidavit form:

(i) Prior to working on the project, all persons employed by the contractor to perform construction shall have completed, the OSHA 10 Hour safety training course established by the Occupational Safety & Health Administration of the United States Department of Labor. Such training does not need to be completed at the time of bidding but shall be completed prior to the date persons are employed on the project.
(ii) The contractor will make its best reasonable efforts to promote employment opportunities for local residents and seek to achieve a project goal of having fifty-one percent (51%) of all Construction Labor hours performed by Miami-Dade County residents. To verify workers� residency, firms shall require each worker to produce a valid driver�s license or other form of government-issued identification. County residents employed in furtherance of the goal set forth in the County�s Community Workforce Program shall be counted towards the fifty-one percent (51%) goal.

(b) Subcontractor Affidavits. After the contractor has received the Notice of Award of the contract but prior to the issuance by the County of the Notice to Proceed, the contractor shall also submit (i) a list of all subcontractors that will be used on the project, and (ii) provide Responsible Subcontractor Affidavits for all such subcontractors to the County. Responsible Subcontractor Affidavits shall be executed by the respective subcontractors on forms prepared by the County and shall contain the same information required in Responsible Contractor Affidavits.

(c) Construction Workforce Plan. Documentation regarding a contractor�s construction workforce plan (the ''Plan'') shall be provided. The Plan shall specify the total number of persons that will be used by the contractor (as well as 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 Plan shall identify by 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-Dade County. The Plan shall also indicate the number of positions shown on the work, trade categories and minimum qualifications therefore of the positions to be hired by the contractor (or by any proposed subcontractors) to perform the construction trades and labor work under the contract.

(6) Workforce Performance Reports:

(a) Within thirty (30) days of completion of a County<<[[Capital]] >>Construction Contract, the contractor responsible for the project shall submit a Workforce Performance Report to the County, which shall include the following information on the workforce employed in the execution of the contract:

(i) the total number of Construction Labor work hours performed on the project, and the number and percentage of such work hours performed by Miami-Dade County residents;

(ii) supporting documentation verifying Construction Labor work hours performed by Miami-Dade County Residents;
(iii) the total amount of funds the contractor expended during the course of the project on other related skill and safety training programs; and
(iv) supporting documentation verifying reasonable efforts to promote employment opportunities for local residents.

(b) No contractor shall receive final payment for completion of a County<<[[Capital]] >>Construction Contract until the County receives a completed workforce performance report submitted pursuant to this Section.

(c) When evaluating a prospective contractor�s bids or proposals for future County<<[[Capital]] >>Construction Contracts, the Department shall review past Contractor�s Workforce Reports, as well as other performance evaluations and reports on the contractor�s work, to ensure it meets appropriate qualification and contractor responsibility standards.

(7) Implementation. The Mayor or Mayor's designee shall prepare and submit to the Board for approval, an Implementing Order within ninety (90) days of the effective date of this ordinance, which shall at a minimum:
(a) Set forth procedures to determine contractor compliance with the requirement to make its best reasonable efforts to promote employment opportunities for local residents and seek to achieve a project goal of having fifty-one percent (51%) of all Construction Labor hours performed by Miami-Dade County residents.

(b) Establish a procedure for review and investigation of allegations of noncompliance with the provisions of this ordinance and IO.

(c) Establish a procedure to determine appropriate sanctions for failure to comply with the terms of this ordinance and IO.<<

>>(d) Require that all solicitations for County Construction Contracts and the resulting contracts, include the requirements of the Residents First Training and Employment Program.<<2

Section 2. If any section, subsection, sentence, clause or provision of this ordinance is held invalid, the remainder of this ordinance shall not be affected by such invalidity.
Section 3. It is the intention of the Board of County Commissioners, and it is hereby ordained that the provisions of this ordinance, including any sunset provision, shall become and be made a part of the Code of Miami-Dade County, Florida. 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 4. This ordinance shall become effective ten (10) days after the date of enactment unless vetoed by the Mayor, and if vetoed, shall become effective only upon an override by this Board.

1 Words stricken through and/or [[double bracketed]] shall be deleted. Words underscored and/or >>double arrowed<< constitute the amendment proposed. Remaining provisions are now in effect and remain unchanged.
2 Committee amendments are indicated as follows: Words double stricken through and/or [[double bracketed]] are deleted, words double underlined and/or >>double arrowed<< are added.

This item was amended at the Economic Development & Port Miami Committee on February 13, 2014 to require that all solicitations for County Construction Contracts and the resulting contracts include the requirements of the Residents First Training and Employment Program.