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File #: 080218    Version:
Type: Ordinance Status: Passed
File created: 5/20/2008 In control: FINANCE & PERSONNEL COMMITTEE
On agenda: Final action: 3/25/2009
Effective date: 8/8/2009    
Title: A substitute ordinance relating to participation of city residents in public works contracts, requirements for developers receiving direct financial assistance from the city, and local business enterprise contracting standards.
Sponsors: ALD. HAMILTON, ALD. WADE, ALD. KOVAC, ALD. COGGS, ALD. DAVIS, ALD. BAUMAN
Indexes: EMERGING BUSINESS ENTERPRISES
Attachments: 1. Proposed Sub D motion with list of amendments to Substitute 1, 2. 3-18-09 Letter from Comptroller, 3. 3-19-09 DPW Infrastructure Sevices regarding fiscal impact, 4. 3-19-09 Dept. of Admin. letter exhibits regarding fiscal impact including revised fiscal note, 5. 3-18-09 Letter from Dept of Public Work re fiscal impact and revised fiscal note, 6. 3-18-09 Revised Dept of Public Works fiscal note, 7. 2-26-09 Dept of Public Works fiscal Note Construction Cost, 8. 6-18-08 Fiscal Note Dept. of City Development, 9. 3-13-09 City Atty letter regarding fiscal impact, 10. 3-3-09 Letter to Ald. Murphy from Dept of Admin Re Fiscal impact, 11. 3-3-09 Fiscal note Dept. of Admin., 12. City Atty letter 3-2-09, 13. Proposed Substitute A, 14. Proposed Substitute B, 15. 9-9-08 News release, 16. City Attorney letter to Ald. Hamilton, 17. 11-11-2008 City Attorney letter to Mayor Barrett, 18. Hearing Notice List, 19. Letter from Kathleen Mulligan-Hansel, Director of The Partnership for Working Families, 20. E-mail from Walgreens 3-2-09, 21. Ald. Hamilton press release 3-2-09, 22. Non Speakers - Support, 23. Non Speakers - Opposed, 24. Speakers - Support, 25. Speakers - Opposed, 26. African American Chamber of Commerce of Greater Milwaukee, 27. Good Jobs and Livable Neighborhoods, 28. Mandel Group, 29. Wisconsin Underground Contractors' Association Inc., 30. Metropolitan Milwaukee Association of Commerce, 31. Professor Dale L. Baleman - review, 32. Letter handed out by Ald Witkowski at 3-3-09 CC meeting, 33. Hearing notice list, 34. 3-20-09 Statement of WI Underground Contractors Association, 35. 3-20-09 Chart of TID, 36. Cross Management Services, Inc., 37. 3-20-09 Commercial Association of REARLTORS WI, 38. 3-20-09 Greater Milwaukee Association of Realtors, 39. 3-20-09 Dept of Adm Intergovernmental Relations Divison, 40. 3-20-09 Dept of Adm Intergovernmental Relations Division, 41. 3/20/09 Letter from Pam Fendt to Common Council members and Mayor Barrett, 42. 3-20-09 Speakers in favor Non Speakers, 43. 3-20-09 Non Speakers Opposed, 44. 3/25/09 news release, 45. Notice Published on 4-9-09, 46. 3/15/10 Ald. Hamilton news release
Date Ver.Action ByActionResultTallyAction DetailsMeeting DetailsVideo
4/9/20094 CITY CLERK PUBLISHED   Action details Meeting details Not available
4/2/20094 MAYOR SIGNED   Action details Meeting details Not available
3/25/20093 COMMON COUNCIL AMENDED

Minutes note: Ald. Witkowski moved to amend this file as follows: Change Section 355-13-3 by deleting PREVAILING WAGE and replacing it with LIVING WAGE REQUIREMENT and by deleting "the prevailing wage rate, as defined in s. 66.0903, Wis. Stats. and adding "an amount not less than the amount required to produce, for 2,080 hours worked, an annual income equal to 150% of the U.S. department of health and human services' most recent poverty guideline for a family of 3..." Per Ald. Witkowski, if the measure is passed it will increase costs to the taxpayer subsidy and cause building projects to not be carried out. During this debate, President Hines yielded the chair to Ald. Puente. Ald. Witkowski called for the previous question.
Fail7:8 Action details Meeting details Video Video
3/25/20093 COMMON COUNCIL AMENDED

Minutes note: Ald. Murphy moved to amend Section 355-15 of this file by deleting "Reporting" and replacing it with "Annual Report" and by adding: "2. Annually, but no later than April 30th, the comptroller shall submit a report to the common council documenting the financial impact of the prevailing wage rate provisions of s. 355-13-3 on all development projects subject to s. 355-13-3 and completed during the prior calendar year. This financial impact analysis will include city of Milwaukee direct costs and indirect benefits as well as those costs incurred by private entities subject to s. 355-13-3."
Pass15:0 Action details Meeting details Video Video
3/25/20093 COMMON COUNCIL AMENDED

Minutes note: Ald. Hamilton and Ald. Kovac offered a motion to amend Section 355-7-1 and 2. This motion will accomplish the following: 1. The section is reorganized to more accurately reflect the current process of administration of RPP requirements. 2. States that the recipient of direct financial assistance shall “ensure compliance with aspects of the development agreement,” in lieu of “require that the 40% of worker hours” be performed by RPP-certified persons. 3. The Department of City Development is added to the administration of RPP requirements, so that the department may work with the EBE administration to plan, implement and enforce this section, including working with the EBE administration and the Milwaukee Area Workforce Investment Board to establish appropriate levels of RPP participation. 4. It inserts a clause that states that “RPP-credit” may not be applied to more than 30% of the resident worker hours requirement. Substitute 3 of this file did not include a maximum percentage level. 5. It removes the ability to require a RPP requirement beyond the 40% level. This motion will amend Section 355-7-1 and 2 to read as follows: Section 355-7-1 and 2are repealed and recreated to read: 355-7. Participation of City Residents. 1. REQUIREMENTS. Recipients of direct financial assistance shall: a. Ensure compliance with aspects of the development agreement regarding the use of unemployed and underemployed residents for construction of the project. For the purpose of this section, "worker hours" includes work performed by persons filling apprenticeship and on-the-job training programs and excludes the number of hours of work performed by all non-Wisconsin residents. b. Ensure that all of the recipients’ contracts with contractors and sub-contractors for the project include a provision in which such contractor or subcontractor certifies that it knows of the provisions of this section, intends to comply with them and authorizes the city to enforce its terms. c. Require that contractors and subcontractors maintain personnel records listing the name, address, race, and gender of all employes utilized for each construction contract, and any records demonstrating that the employes utilized by the contractors and subcontractors in meeting the requirements of this section are residents of the city. These records shall be maintained for 7 years after the contractor or subcontractor has received final payment under its construction contract, and shall be made available to the emerging business enterprise administration for inspection upon reasonable notice. 2. ADMINISTRATION. The department of city development and emerging business enterprise administration shall be responsible for the planning, implementation and enforcement of this section. a. Prior to submitting a proposed term sheet for a project, the commissioner of city development, in consultation with the emerging business enterprise administration or such other entity as may be designated by the city from time to time, shall determine the appropriate level of participation of unemployed and underemployed residents of the city for the project to reflect the job or trade categories required for the project and the pool of available certified and qualified workers within each job or trade category. The total appropriate level of participation shall be presumed to be 40%, unless the commissioner determines there is sufficient reason to impose a lesser requirement. The recipient of direct financial assistance shall submit a city resident utilization plan detailing how the level of required participation will be achieved. Up to one-third of required worker hours may be achieved by documenting the use of unemployed or underemployed residents on projects undertaken by the developer where such compliance is not required, or by hiring unemployed or underemployed residents on a full-time permanent basis for non-construction job categories connected to the project. Such adjustments must be proposed in an affidavit on a form provided by the department setting forth the facts upon which the request for adjustment is based. b. Prior to the release of funds, the commissioner shall confirm that all contractors and subcontractors, prior to commencement of their work, have submitted an affidavit in the form supplied by the department from employes utilized to meet the requirements of this section, stating that the employe is unemployed or underemployed and is a resident of the city. c. During the construction of any project covered by this section, the emerging business enterprise administration shall: b-1. Monitor compliance with the provisions of this section. b-2. Confirm that all contractors and subcontractors have submitted construction contract time reports listing workers by name, residential address, work classification and hours worked at least once every 3 months during the course of their work and within 10 days following completion of their work. b-3. Arrange for an independent audit with respect to the residents preference program, to be performed every 3 years, by a certified accounting firm licensed to perform audits in the state of Wisconsin, or by the city comptroller.
Pass14:1 Action details Meeting details Video Video
3/25/20093 COMMON COUNCIL AMENDED

Minutes note: Ald. Hamilton and Ald. Kovac moved to amend Section 309-41-3-a-2 of this file to as follows: 3. ADMINISTRATION. a-2. Determine the appropriate level of participation of unemployed >>or underemployed<< residents of the [[CDBG area]] >>city<< for inclusion in the contract specifications. The appropriate level of participation shall be presumed to be [[25%]] >>40%<<, unless the department determines there is sufficient reason to impose a lesser requirement. However, the commissioner of public works may require greater levels of participation if the commissioner finds that such levels may be warranted for certain contracts. >>Up to one-third of required worker hours may be achieved by documenting the use of unemployed or underemployed residents on projects undertaken by the contractor where such compliance is not required, or by hiring unemployed or underemployed residents on a full-time permanent basis for non-construction job categories connected to the project. Such adjustments must be proposed in an affidavit on a form provided by the department setting forth the facts upon which the request for adjustment is based.<<
Pass14:1 Action details Meeting details Video Video
3/25/20094 COMMON COUNCIL PASSEDPass8:7 Action details Meeting details Not available
3/20/20093 FINANCE & PERSONNEL COMMITTEE AMENDED

Minutes note: Ald. Murphy moved to amend Section 365-3-2-b by changing 6 months to 1 year and by amending Section 365-7-1-e by changing $50,000 to $25,000.
Pass4:0 Action details Meeting details Not available
3/20/20093 FINANCE & PERSONNEL COMMITTEE RECONSIDEREDPass4:0 Action details Meeting details Not available
3/20/20093 FINANCE & PERSONNEL COMMITTEE RECOMMENDED FOR PASSAGE

Minutes note: As amended.
Pass4:0 Action details Meeting details Not available
3/20/20092 FINANCE & PERSONNEL COMMITTEE AMENDED

Minutes note: Ald. Hamilton asked that this file be amended by deleting the following under section 355-1-2. DIRECT FINANCIAL ASSISTANCE: "Money allocated for environmental remediation, money allocated of the purchase of public access easements, money allocated of the construction of riverwalks, dockwalls, walkways, plazas, parks, private roadways open to the pubic or similar improvements or money allocated for public infrastructure improvements shall to be included in any calculation made pursuant to this definition." ; and, by adding the following under section 335-13-3. PREVAILING WAGE: "For purposes of this section, direct financial assistance shall not include money allocated for environmental remediation, money allocated for the purchase of public access easements, money allocated for the construction of riverwalks, dockwalls, walkways, plazas, parks, private roadways open to the public or similar improvements or money allocated for public infrastructure improvements. Individual present: Ms. Martha Brown, Dept. of City Development
Pass5:0 Action details Meeting details Not available
3/20/20091 FINANCE & PERSONNEL COMMITTEE SUBSTITUTED

Minutes note: Individual present: Ald. Hamilton, 1st Aldermanic Dist. Ald. Hamilton offered a Proposed Substitute D.
Pass5:0 Action details Meeting details Video Video
3/20/20093 FINANCE & PERSONNEL COMMITTEE RECOMMENDED FOR PASSAGE

Minutes note: Individuals present: Rhonda Kelsey, City Purchasing Director Mark Nicolini, Director, Dept. of Admin., Budget & Management Div. Linda Burke, Deputy City Attorney Steve Kwaterski, Dept. of Admin., Intergovernmental Relations Rocky Marcoux, Commissioner of Dept. of City Development Wally Morics, Comptroller Jeff Mantes, Commissioner of Public Works Ald. Wade, 7th Aldermanic Dist. Assist. City Attorney Tom Miller Ald. Murphy said he will work with Mr. Morics to put together a tracking mechanism on the cost impact of the prevailing wage requirement and then may have an amendment prepared and may offer it at the March 25, 2009 Common Council meeting. Speakers - In Support: Max Bodenbach, Member of MICAH, Jobs, etc. Nick Trisari, Milwaukee Area Tech. College, Apprenticship program Ralph Hollmon, President, Milw. Urban League Rev. Ken Wheeler, Cross Lutheran Church and MICAH Non-Speakers - In Support: Jerry Knapp, LECET John J. Schmidt, Union Local 113 Kwabena Robert Falson Mary Devitt, MICAH Dennis Lowder, Good Jobs & Livable Neighborhoods Ellen Talavera, IBEW Local 494/GJLN Rose Stietz, MICAH, St. Martin De Porres Catholic Church Tom Niebler, MICAH Pam Fendt, Good Jobs & Livable Neighborhood Coalition Speakers - Opposed: Mike Fardy, Inland Companies Richard Lincoln, Mandel Group Barry Mandel Philip Schultz, Horizon Development Group - opposed to prevailing wage requirement Steve Bass, MMAC Lamont Harris - opposed to prevailing wage requirement Richard Wanta, Wisconsin Underground Contractors Francisco Sanchez, Business owner Carla Cross, Cross Management, Inc. - opposed to EBE and prevailing wage requirements Non-Speakers - Opposed: Jim Villa, Commercial Realtors Association Marne Stuck, Greater Milwaukee Assoc. of Realtors Stewart Wangard, Wangard Partners, Representing NAIOP Randy Nass, Next Development Blair Williams, WIRED Properties Mr. Karan R. Haywood, Vangard Charles Trainer, TMB Develop Co. - PBH Redevelopment LLC Bob Sheehy, ICSC - International Council of Shopping Centers Philip Schultz, Horizon Development
Pass4:0 Action details Meeting details Not available
3/11/20091 FINANCE & PERSONNEL COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
3/3/20090 COMMON COUNCIL ASSIGNED TOPass12:3 Action details Meeting details Video Video
3/2/20091 CITY CLERK Sponsor added

Minutes note: Ald. Davis added as co-sponsor.
   Action details Meeting details Not available
3/2/20090 COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE SUBSTITUTED

Minutes note: Individuals present: Ald. Hamilton, 1st Aldermanic Dist. appeared and gave a PowePoint presentation. Ald. Kovac, 3rd Aldermanic Dist. Proposed Substitute C offered. Ald. Davis asked to be added as a co-sponsor. Speakers - Opposed Richard W. Wanta, The Wisconsin Underground Contractors Association Carla Cross, 1815 N. 4th St., Cross Management Chris Korjenek, NAIOP Richard Lincoln, Mandel Group, Inc. Berry Mandel, Mandel Group, Inc. Greg Uhen, Eppstein Uhen Architects Stewart Wangard, Wangard Partners, Representing NAIOP Jim Villa, CARW Mike Ruzicka, Greater Milwaukee Realtors Labrant Pikalek, L.A. Drywall & Painting Dan Jessup, Commerical Assoc. of Realtors Scott Langlois, Quarles & Brady LLP Sheldon Opperman, Compass Properties Bruce Westling, MLG Commercial Non-speakers - Opposed Marne Struck, Greater Milwaukee Assoc. Realtors Mark Schnoll, Inland Companies Bruck Stern, Inland Companies Schott Welsh, Inland Companies Mike Fardy, Inland Companies Tom Shepherd, Inland Companies Speakers - In support Rev. Kenneth W. Wheeler, MICAH Sheila Cochran, Milwaukee Labor Council Dale Belman, Michigan State University Marvin Pratt Rev. Louis E. Sibley III, President of MICAH Jennifer Epps, Good Jobs & Livable Neigbhorhoods Coalition Ralph Hollmon Lyle Balistreri, Milwaukee Construction, Buildings and Trades Council Max Bodenbach, Jobs/Jobs Clarence Johnson, Executive Director, Justice 2000 Nacarci Feaster, Laborers Union Local #113 Pam Fendt, Good Jobs & Livable Neighborhoods Coalition Nichole Yunk, Justice 2000 Ray Curtis, Community Warehouse Wallace White, Chairman, African American Chambers of Commerce Ruth Zubresnsky Non-speakers - In support Val Kyles, MICAH Malcolm Kyles Jim Carpenter, MATC Instructor James Ito Sherman Jackson, Good Jobs & Livable Neighborhoods Coalition Kirsten Thompson, MICAH John Goldstein Kathleen Mulligan-Hansel, Partnership for Working Families Matthew Brusky, Citizen Action of WI Rev. Andrew Warner, Plymouth UCC/MICAH Cathy Olive Eric Gunderson Helga Gueguierre Denis Guequierre Marvin Walker, Marvin L. Walker & Associates, Inc. Mary Devitt, MICAH Carol Pawlak, MICAH Zachary Devitt, MICAH Kalan Haywood, Vangard Sandra Chapman, Cross Lutheran Church
Pass5:0 Action details Meeting details Video Video
3/2/20091 COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE RECOMMENDED FOR PASSAGEPass3:2 Action details Meeting details Not available
2/13/20090 COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
2/13/20090 COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
2/13/20090 COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
9/10/20080 CITY CLERK Sponsor added

Minutes note: Ald. Wade, Kovac and Coggs added as co-sponsors.
   Action details Meeting details Not available
5/20/20080 COMMON COUNCIL ASSIGNED TO   Action details Meeting details Not available
Number
080218

Version
SUBSTITUTE 4

Reference

Sponsor
ALD. HAMILTON, WADE, KOVAC, COGGS, DAVIS AND BAUMAN

Title
A substitute ordinance relating to participation of city residents in public works contracts, requirements for developers receiving direct financial assistance from the city, and local business enterprise contracting standards.

Sections
309-38-0 am
309-38-3-a rn
309-38-3-a cr
309-38-3-b rn
309-41-1-a rp
309-41-1-b rn
309-41-1-c rn
309-41-1-d rn
309-41-1-e ra
309-41-1-f rn
309-41-1-f rc
309-41-1-g rn
309-41-1-g cr
309-41-2-a am
309-41-2-c am
309-41-2-d rp
309-41-3-a-2 am
309-41-3-b-2 am
309-41-4 am
309-41-5-c am
309-41-5-f am
309-41-5-g am
309-41-5-h am
355 cr
360-06-1 am
365 cr

Analysis

This ordinance makes several changes relating to the requirements of the participation of city residents in public works contracts, requirements for developers receiving direct financial assistance from the city, local business enterprise contracting standards and sanction and penalty provisions for these matters.

Participation of City Residents in Public Works Contracts

This ordinance makes several changes to the requirements under participation of city residents in public works contracts. The changes include:
1.) The definition of resident is changed to include all persons who maintain their place of permanent abode within the entire city, not just the CDBG area.
2.) Worker hours is defined and excludes all hours performed by non-Wisconsin residents.
3.) The definition of unemployed or underemployed is changed to include low-income individuals regardless of employment status.
4.) It is required that 40% of the worker hours, unless the department of public works determines there is sufficient reason to impose a lesser requirement, shall be performed by unemployed or underemployed residents and that the contractor give fair consideration to all segments of the population including women and minorities. The number of hours subject to the 40% re...

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