ORDINANCE. AN ORDINANCE to ordain Division 3 of Article IV, Chapter 70 of the Code of the City of New

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1 ORDINANCE CITY OF NEW ORLEANS CITY HALL: September 3, 2015 CALENDAR NO. 30,925 NO. MAYOR COUNCIL SERIES BY: COUNCILMEMBER GRAY (BY REQUEST) AN ORDINANCE to ordain Division 3 of Article IV, Chapter 70 of the Code of the City of New Orleans, to establish a local hiring ordinance to increase opportunities for local workers on City construction projects; to establish participation goals for local workers on certain City projects; to designate enforcement, monitoring and oversight authority; to establish an effective date; and otherwise to provide with respect thereto. WHEREAS, it is in the interest of the City of New Orleans to maximize employment opportunities created by City contracts to provide consistent and high quality opportunities to local workers; and WHEREAS, it is in the interest of the City to provide increased economy in the City s procurement activities and maximize purchasing value to the fullest extent possible; and WHEREAS, only 21% of the total work hours on current City projects are completed by local workers; and WHEREAS, a local hiring ordinance is the appropriate tool to advance the City s workforce and economic development goals, thereby removing obstacles that may have historically limited the full participation of local workers on a wide array of opportunities created by the City funded public works and improvement projects; NOW, THEREFORE SECTION 1. THE COUNCIL OF THE CITY OF NEW ORLEANS HEREBY ORDAINS That Division 3 of Article IV, Chapter 70 of the Code of the City of New Orleans is hereby ordained to read as follows: Division 3. Local Worker Participation. Sec Program Created.

2 A program is established in the Office of Workforce Development for the advancement of Local Workers on City-funded projects, to be known as HireNOLA. Sec Purpose. The purpose of HireNOLA is to link quality employment opportunities created by City construction contracts and economic development projects with Local Workers. Sec Definitions. Apprenticeship Program means a union or merit-based program recognized by the State and Federal government that is in good standing and not within a probationary period. Covered Project means (a) any contract to which the City is a party for construction, alteration, or demolition of public buildings or public works of the City of New Orleans in excess of $150,000 executed on or after this law becomes effective, or (b) any cooperative endeavor agreement to which the City is a party and through which the City provides tax incentives for economic development projects in excess of $150,000 executed on or after this law becomes effective. For the purpose of this definition, the City shall include the City of New Orleans and any of its boards, commissions, or public benefit corporations. Craft Employee Request Form means the form used by prime contractors and their subcontractors to request dispatch or referral of craft workers who are Local Workers or Disadvantaged Local Work from the City or apprenticeship program. Disadvantaged Local Worker means a local worker, as defined below, who (i) at the time of commencing work on a covered project has a household income of less than 80% of Area Median Income (AMI), adjusted for household size, of Orleans Parish or (ii) faces at least one of the following barriers to employment: (1) being homeless; (2) being a custodial single parent; (3) is eligible to receive public assistance; (4) having a prior arrest or conviction; (5) suffering from chronic unemployment; (6) having been emancipated from the foster care system; or (7) being a veteran of the U.S. military. Domicile means the place at which a person has been physically present and that the person regards as home; a person s true, fixed, principal, and permanent home, to which that person intends to return and remain even though currently residing elsewhere. Local Worker means any person domiciled in Orleans Parish. Prime Contractor means any person, firm, partnership, owner operator, limited liability company, corporation, joint venture, proprietorship, trust, association, or other entity selected to perform an applicable contract. 2

3 Project Work means construction work performed in the construction of a Covered Project. Subcontractor means any person, firm, partnership, owner operator, limited liability company, corporation, joint venture, proprietorship, trust, association, or other entity that subcontracts directly with a prime contractor or another contractor to fulfill an applicable contract. Sec Local Participation Goals. 44 (a) Prime contractors and their subcontractors shall (a) demonstrate good faith efforts to cause at least thirty percent (30%) of all work hours performed by Louisiana workers on Covered Projects to be performed by Local Workers; (b) demonstrate good faith efforts to cause at least ten percent (10%) of all work hours performed by Louisiana workers on Covered Projects to be performed by Disadvantaged Local Workers; (c) demonstrate good faith efforts in the utilization of Apprenticeship Programs to employ the maximum number of apprentices allowed by law to ensure that ten percent (10%) of all work hours performed by Louisiana apprentices are performed by Disadvantaged Local Workers; and (d) use the City of New Orleans as its first source for recruitment, referral and placement of all new hires for employment opportunities created by an applicable contract. 53 (b) The initial participation goals are that thirty percent (30%) of all work hours performed by Louisiana workers in a Covered Project be performed by Local Workers, with no less than ten percent (10%) of all project hours performed by Louisiana workers on Covered Projects being performed by Disadvantaged Local Workers; and that ten percent (10%) of all work hours performed by Louisiana apprentices are performed by Disadvantaged Local Workers. Subject to a periodic review process, the participation goals shall increase by five percent (5%) annually over five (5) years up to participation goals of fifty percent (50%) of all project hours being performed by Local Workers, with no less than thirty percent (30%) of all project hours being performed by Disadvantaged Local Workers; and that no less than thirty percent (30%) of all work hours performed by Louisiana apprentices are performed by Disadvantaged Local Workers. 3

4 Year Effective Date That Contract Is Advertised for Bid Participation Goals (in %) Local Workers/Disadvantaged Local Workers 66 Year 1 30/10/10 67 Year 2 35/15/15 68 Year 3 40/20/20 69 Year 4 45/25/25 70 Year 5 50/30/ Sec Compliance. The City shall not enter into any applicable contract subject to this Division that is not supported by documentation establishing that the Prime Contractor (1) has met the Local Hiring Goal or commits to demonstrate good faith efforts to meet the Local Hiring Goals; and (2) commits to implement the First Source provisions, as set forth below. (a) Good Faith Efforts. Demonstrated good faith efforts by Prime Contractors and their Subcontractors shall include, but are not limited to: (1) Solicitation of qualified local workforce candidates through the City of New Orleans via Craft Employee Request Form; (2) Other methods used to solicit local workforce, such as advertising vacancies at the work site, in daily or weekly newspapers or other publications, or using internet sources. Advertisements must include, at a minimum, the position description, desired candidate qualifications, application deadline, and contact information. Contractors are to provide evidence of such publications concerning employment opportunities; (3) Documented records of interested local workforce candidates solicited who are deemed unqualified and the reason why they failed to qualify; (4) Providing names of individuals that have been contacted in an effort to recruit and place Local Workers and Disadvantaged Local Workers; or (5) Otherwise complying with the First Source requirements provided herein. 4

5 90 (b) First Source. Prime Contractors and their Subcontractors shall utilize the City of New Orleans as its first source for recruitment, referral, and placement of all new hires for employment opportunities created by an applicable contract. Prime Contractors and their Subcontractors must notify the City of New Orleans of its specific need for new employees, through the use of the Craft Employee Request Form, at least five (5) business days before advertising the employment opportunity to the general public. Sec Waiver of Goals. The City of New Orleans shall have the discretion to provide a written waiver of specific local participation goals, either in the RFP/bid stage or after the actual award of the contract if the contractor can establish that despite its best efforts, as determined by the City of New Orleans, the contractor was unable to meet the local hiring participation goals established for such contract. Sec Enforcement. The Office of Workforce Development shall have primary responsibility for general oversight, administration, compliance, monitoring and enforcement of this Division. The Office of Workforce Development shall provide employee recruitment, referral, and placement services to Prime Contractors and their Subcontractors in fulfillment of an applicable contract. Sec Regulations. Pursuant to Section of the City Code, the Office of Workforce Development shall promulgate rules and regulations in accordance with the provisions contained in this Division and such other rules and regulations as may be necessary for the purpose of implementing and carrying out the provisions contained herein. 5

6 1 2 SECTION 2. That the provisions of the HireNOLA program shall become effective upon the promulgation of rules and regulations provided for herein. ADOPTED BY THE COUNCIL OF THE CITY OF NEW ORLEANS PRESIDENT OF THE COUNCIL DELIVERED TO THE MAYOR ON APPROVED: DISAPPROVED: MAYOR RETURNED BY THE MAYOR ON AT ROLL CALL VOTE: YEAS: NAYS: ABSENT: CLERK OF COUNCIL 6