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HomeMy WebLinkAbout2/6/2019 - STAFF REPORTS - 00 • • • • • • • A NEW DEAL • • • • • • FOR • • • • PALM SPRINGS RESIDENT • • • • AND • • • • THE BUSINESS COMMUNITY • • • A PLAN TO PUT PALM SPRINGS • FIRST • • • • • • SUBMITTED BY DARYL TERRELL ON FEBRUARY 6, 2019 AT THE PALM SPRINGS • CITY COUNCIL MEETING • • • • • • • HIRE PALM SPRINGS FIRST PLAN • • • CONTENTS • • • • • EXECUTIVE SUMMARY 3 • • • • • • HIRE PALM SPRINGS FIRST ORDINANCE 6 • • • • • • • FIRST SOURCE HIRING AGREEMENT 30 • • • • • • • • FIRST SOURCE HIRING DEVELOPMENT AGREEMENT 35 • • • • • 2 • • • • • THE HIRE PALM SPRINGS' RESIDENTS FIRST PLAN EXECUTIVE SUMMARY PURPOSE To put Palm Springs residents back to work now by ensuring that our residents are not only first in line for the jobs their tax dollars created through this city's direct or indirect assistance to an individual or to a business that materially benefited from and incurred a • material cost to this city, but be part of the workforce. BACKGROUND Many of the hard-working men and women of Palm Springs cannot find a family long- term sustainable job. However, the city has an obligation to help out with the things they can control — namely city contracts and this city's direct or indirect assistance, which an • individual or to a business that materially benefited from and incurred a material cost to this city, used to attract companies to Palm Springs. Many Palm Springs residents continue to face the daunting task of finding a job. Due to • the lack of local jobs, many residents of the city 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. It is vital that the residents' tax dollars and the city's direct or indirect assistance, which an • individual or to a business materially benefited from and incurred a material cost, are • spent to create jobs for the city's residents. • It's more important than ever that the city ensure the residents' tax dollars are creating . jobs for Palm Springs residents. This city needs to do everything it can to help our residents get back on their feet and back to work in a long-term family sustainable job. . That's why I am putting forth A New Deal For Palm Springs Residents And The • Business Community: The Hire Palm Springs First Ordinance, an aggressive job- creation package, that not only will put the residents back to work now by ensuring they are first in line for jobs their tax dollars created through the city's direct or indirect • assistance to an individual or a business materially benefited from and incurred a • material cost to the city, but qualified residents would be part of the workforce. • Residents' tax dollars should work for them; that's what The New Deal For Palm • Springs Residents is all about: ensuring that the residents not only first in line, but part of the workforce their tax dollars created. This plan will help ensure that when businesses or individuals accept tax dollars or receives direct or indirect • 3 assistance, which they materially benefited from and incurred a material cost to this city, the residents should benefit. ACTION ADOPT THE HIRE PALM SPRINGS FIRST ORDINANCE • HIGHLIGHTS AND SUMMARY • Requires all agreements, city contracts for public works or improvements . exceeding $100,000 or any private projects receiving direct or indirect assistance • by this city that they materially benefited from and incurred a material cost to this city would contain provisions to which the individual or the business is required to make a good faith effort to hire you, who are qualified, so that no less than 50% of the total workforce, including any subcontractor work force be comprised of • Palm Springs residents. • Requires that an individual or a business that receives subsides or direct or • indirect assistance by this city that materially benefited from and incurred a cost • to the city to enter into a First Source Hiring Agreement, which requires them to use Palm Springs residents as their "first source" for job interviews and in a good faith effort to hire qualified residents in sufficient numbers so, no less than 40% of • the total construction and non construction workforce is comprised of qualified . Palm Springs residents. • Requires as condition of the issuance of use permits, for any new commercial . building of 25,000 square feet or industrial building of 50,000 square feet or more • along with the construction and non construction jobs, which may arise after the construction is completed to enter into a first source hiring agreement, which requires them to use our Palm Springs residents as their "first source" for job . interviews and in a good faith effort to hire qualified residents in sufficient • numbers so, no less than 30% of the total construction and retail workforce is comprised of qualified Palm Springs residents. t♦ • Establish an exclusivity period, when an on-site job become available, an employer would notify the first source referral system. And promptly refer qualified residents for each available job. For a 10-day period (six weeks for initial store opening), employer should only consider applicants referred by • the First Source Hiring Referral System and should make a good faith effort • to hire these applicants, but, if an employer cannot find no qualified residents, they are free to hire anyone outside our city. 4 . • Requires if after making a good faith effort, a developers, employer, contractor or subcontractor is unable to comply to meet 50% goal of • qualified Palm Springs residents, employment of qualified individuals from • neighboring municipalities may be counted so that no less than 40% of the work force, is comprised of residents of Palm Springs and residents of neighboring municipalities. • Requires in the event that two or more bids are the same and the lowest, the city would award the contract to the bidder that made the most significant effort to . employ local residents. • Any contractor or direct subcontractor declared to be irresponsible would be disqualified from eligibility for providing goods, labor, materials or services to the • city for a period of one year for the first violation and three years for a second, with a right of review and reconsideration by the city council after two years upon a showing of corrective action indicating violations are not likely to recur. • Before awarding a construction contract worth more than $250,000, the developer would ensure that the contractor either has arranged to subcontract no less than 40% of the work to local small local businesses, or has made good faith • efforts to do so. • When awarding service contracts, supply contracts, or small construction contracts, developers should make good faith efforts to award contracts to small • local businesses. • When employers award contracts such as service contracts or supply contracts, employers should make good faith efforts to utilize small local businesses. • Construction contractors that award subcontracts should either award 30% of subcontracts to small local businesses, or make good faith efforts to do so. Provide bringing much-needed accountability and transparency to the way the city gives individuals or businesses direct or indirect assistance that materially benefits from and incured a material cost to the city in creating jobs. CONCLUSION • The Hire Palm Springs First Ordinance would ensure out of residents are given a fair shot at getting Palm Springs jobs. This plan would bring much-needed accountability and transparency to the way the city gives direct or indirect assistance to an individual or a business materially benefited from and incured a material cost to the city and the • residents' tax dollars are issued to ensure the residents are getting a proper return on • 5 their investment. The Hire Palm Springs First Ordinance would not only boost the local economy and get families back to work, but it would translate into a reinvestment in our city that will help pay for city services. This plan would generate new jobs for the residents every year and would infuse our general fund. This plan would ensure that the city continues to invest in Palm Springs jobs and present qualified residents the opportunity to work building their own communities. The residents need is the chance to earn an honest day's pay for an honest day's work • and this plan will help ensure that their tax dollars and city's direct or indirect assistance • are used to create those opportunities. That's what the Hire Palm Springs First Plan is all about standing up for our working families. a ORDINANCE NO AN ORDINANCE OF THE CITY OF CITY COUNCIL OF THE CITY OF THE PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 7.01.040 AND 7.09.040 OF TO THE CITY OF PALM SPRINGS MUNICIPAL CODE, ESTABLISHING THE HIRE PALM • SPRINGS FIRST PROGRAM. • THE CITY COUNCIL OF PALM SPRINGS, CALIFORNIA ORDAINS: SECTION 1. Section 7.01.040 is amended by adding the following definitions: • "City" shall mean the City of Palm Springs, its agencies, departments. "City Council" shall mean the City Council of the City. "Construction Contractor" shall mean an individual, partnership, corporation, joint venture or other legal entity entering into a Public Works Contract with the City, or • performing construction work on a Subsidized Project. • "Covered Entity" shall mean any entity that enters into a contractual commitment to comply with this Policy. . "Designated Local Publication" shall mean a publication designated by the City as likely to reach Small Local Businesses. • "Developer" shall mean a person, firm, partnership, Limited Liability Company, corporation, joint venture, proprietorship, trust, association, or other entity entering into a disposition and development agreement, an owner participation agreement, a loan • 6 • f agreement, a development agreement, or a similar agreement with the City. "Employer" shall mean a Subsidy Recipient, for-profit business or a nonprofit entity that conducts any or any business, which occupies and conducts it business on any portion of the site of any Subsidized Project within ten years after completion of the • Project. "Employer" does not include Construction Contractors or businesses performing work pursuant to short-term contracts. Short-term contracts are one-time, nonrenewable contracts to be completed in less than six months time. "Exclusivity Period" is defined as the period of time commencing with the Pre- Hiring Notification by the Employer during which time the Employer may not take any • actions to fill a position, including but not limited to advertising, announcing, recruiting, or interviewing. The length of the exclusivity period shall be determined after S consultation with the Employer, but in no event shall be less than thirty (30) days. "First Source Hiring Agreement" shall mean as written binding agreement between a Subsidy Recipient and the City, wherein the Subsidy Recipient or any new Employer, who obtains certificate of occupancy for any industrial buildings of 50,000 • square feet or more or any commercial buildings of 25,000 square feet or more agrees to make a good faith effort to hire qualified individuals who resides in the City of Palm Springs and to establish the hiring process to be followed and containing, at least, the Employer's: (1) commitment to abide by the responsibilities of an Employer under this • Ordinance, and (2) agreement that the specified hiring process shall be followed in order to maximize the number of Palm Springs residents employed. Unless the City Council directs otherwise, First Source Hiring Agreements shall contain the terms set forth in the sample documents considered by the City Council in approval of this • Ordinance. "First Source Hiring Referral System" shall mean the system that would be • established by the City to provide referrals of Residents to Employers for employment . covered by this Ordinance. "Long Term Job" is defined as those positions 90 days or more in duration. • Positions created as a result of internal promotions, terminations, or expansions within • the Subsidy Recipient's work force, which are to be filled by new employees, are included. However, positions filled through promotion from within the Subsidy Recipient's existing work force are not covered positions under this agreement. "New Hire" shall mean any employee of a Contractor or Subcontractor who is not listed on the Contractor or Subcontractor's last quarterly tax statement for the period S prior to the commencement of work. "Policy" shall mean this Hire Palm Springs First Program, in its entirety. 7 "Public Works Contract" shall mean any contract with the City for construction, alteration, demolition, or repair work. "Resident" shall mean any person whose primary residence is in the City of Palm Springs. "Service Contract" shall mean a contract with the City for performance of services, not including Public Works Contracts. "Service Contractor' shall mean any recipient of a Service Contract, and any subcontractor performing work in furtherance of that Service Contract. • "Small Local Business" shall mean any business that employs the equivalent of . ten or fewer full-time employees in its total workforce. A business that maintains its primary office at an established commercial or residential address in the City (not including temporary offices, movable offices, or Post Office Boxes); A business that maintains a current City business license tax certificate; A business that has been in • existence for at least six months; and (4) for the previous complete fiscal year had gross revenues of less than $5,000,000 for construction contractors, or less than $500,000 for businesses other than construction contractors (revenue thresholds shall be annually adjusted for inflation). • "Subcontractor" shall mean any and all parties with whom a Subsidy Recipient, Construction Contractor or other Subcontractor enters into a contract to perform a portion of any construction, alteration, demolition, or repair work. • "Subsidized Project" shall mean a development project for which a Subsidy Recipient received one or more Subsidies with s total cost to the City of $100,000 or • more. "Subsidy" shall mean direct or indirect assistance by the City that materially • benefits that person or entity, including, but not limited to: grants or loans of funds • administered by the City or zone changes; tax abatements or deferrals; infrastructure improvements made for the purpose of facilitating or supporting a development project; land sale at below market value; a ground lease at below market value. Any economic • benefit including Federal, State, County approved by the City Council of the City of • Palm Springs for a person or entity "Subsidy Recipient" shall mean 1) a person or entity that in any twelve month . period receives Subsidies with a total cost to the City of $100,000 or more including • Federal, State, County, City approved by the City Council Of the City of Palm Springs for a person or entity; and/or 2) a person or entity that receives written notice that in exchange for the City's grant or subsidy to that person or entity, such person or entity . must abide by the provisions of this Ordinance. . "Viable apprenticeship program" means an apprenticeship program approved by 8 • the California Department of Apprenticeship Standards that has graduated apprentices annually for at least the past five years. Any apprenticeship program that has been • approved for less than ten 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. SECTION 2. Section 7.09.050 is added to the Palm Springs Municipal code to read: 7.09.50 Hire Palm Springs First Program: • j1) Findings. Due to the lack of local jobs, much of the work force residing in • Palm Springs 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. Because of the shortage of local jobs, many residents of • Palm Springs 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. The City of Palm Springs offers direct or indirect assistance that materially benefits that person or entity to locate or relocate their businesses or for the purpose of facilitating or supporting a development project and the City of Palm Springs also awards many contracts to private firms to provide services to the public and to the City of Palm . Springs. 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 dropout rates. It is in the best interest of the City of Palm Springs to have a healthy local business community. Palm Springs businesses often encounter obstacles to obtaining financing, credit, bonding, and insurance to maintain their economic vitality. Policies and . programs that enhance the opportunities of Palm Springs businesses will best serve the • public interest. The growth and development of such businesses in Palm Springs need to be encouraged. • It is critical to the residents of the City of Palm Springs that public work projects provide employment opportunities for residents of the City of Palm Springs and increase business opportunities for all local businesses. The City Council of the City of Palm Springs needs an expanding employment base and provide the opportunities for local • businesses to participate in public work projects and a policy that encourages • contractors, who receive City contracts or subsidies to hire residents of Palm Springs will benefit the City as a whole. Such policy will provide job opportunities to Palm Springs residents, expand the City's employment base, lessen the drain on public • 9 assistance resources and reduce the impacts on the environment caused by high unemployment and long commuting times to jobs outside the area. The City Council of the City of Palm Springs finds that requiring the Subsidy Recipients of such subsidies and contracts to make a good faith effort to hire qualified Palm Springs residents will help to alleviate unemployment and expand Small Local • Businesses opportunities. The City Council of the City of Palm Springs finds hiring Palm Springs Residents contributes to the economic vitality of the community by reducing unemployment and poverty. r 2. Declaration of Policy and Purpose. It is the policy of the City of Palm • Springs to ensure full and equitable opportunities for Palm Springs residents to . participate in the employment opportunities that arise from Public Works Contracts, Service Contracts, and Subsidized Projects. It is the policy of the City of Palm Springs to ensure that Palm Springs Residents have the opportunity to work on Subsidized or . publicly funded projects or Long-Term Jobs whether there are public works • construction, construction, retail, office, administrative, and other employment in their own community. It is, also, the policy of the City of Palm Springs to increase the number of employed persons living in the City of Palm Springs in an attempt to counteract the economic and social ills associated with unemployment. Furthermore, it is the policy of the City of • Palm Springs to provide all local businesses with the opportunities and increases to participate in Subsidized or publicly funded projects by the City Palm Springs. • In furtherance of this policy the City of Palm Springs would established a Hire Palm • Springs First Program to facilitate and encourage private sector employment • opportunities to qualified Palm Springs Residents And Small Local Businesses for the work to be performed under Public Works contracts, Service Contracts, and Subsidized Projects by requiring the Subsidy Recipient to execute a First Source Agreement and • make a good faith effort to hire qualified Palm Springs residents for all Long Term Jobs and expand small local businesses opportunities through contracting and subcontracting. . 3. Scope and Goals A. 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 or more shall contain provisions pursuant to which the contractor is required to make a good- faith effort, with the assistance of the City of Palm Springs, local workforce development . center, local employment agencies, local labor union hiring halls or other local • organizations designated by the City to hire qualified individuals who are, and have been for one year prior to the effective date of the contract, residents of Palm Springs in sufficient numbers so that no less than 50% of the contractor's total construction work • 10 . force, including any subcontractor work force, measured in labor work hours, is comprised of Palm Springs residents. B. 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 Section 3(A) shall contain provisions pursuant to . which each contractor that awards any contract covered by this section is subject to a 40% subcontracting goal for Small Local Businesses. Under this requirement, each contractor shall either meet this goal or demonstrate that it made good faith efforts to do • so. In order to demonstrate good faith efforts, contractors shall prepare and forward to the Community and Economic Development Department a summary of outreach and assistance efforts to Small Local Businesses, including each of the requirements listed in Section 7.01.040. If a contractor awards only one contract covered by this section, the contractor shall either award that contract to a Small Local Business or make good faith efforts to do so. The 40% subcontracting goal does not apply to any contractor that does not award any . contracts covered by this section. D. For any Public Works or Service Contract with the City that has a value of $100,000 or more, or a Subsidized Project with a Subsidy from the City of $100,000 or more, there is hereby established the following goals for employment of Palm Springs residents and Small Local Businesses: • 1. Public Works (Construction) Employment: that a minimum fifty percent (50%) of the total workforce shall be performed by Palm Springs residents, that a minimum of fifty percent (50%) of all New Hires for the contract or project shall be Palm Springs residents for the duration of the contract or • project, that a minimum fifty percent (50%) of subcontracts shall be awarded or make good faith effort to do so to Palm Springs Small Local Businesses 2. Retail Employment: that a minimum fifty percent (50%) of the total workforce shall be Residents, and that a minimum of fifty percent (50%) of all New Hires shall be Residents. 3. Office, Administrative, and Other Employment: that a minimum fifty percent (50%) of the total workforce shall be Residents, and that a minimum of fifty percent (50%) of all New Hires shall be Residents. 4. Industrial Employment: that a minimum fifty percent (50%) of the total workforce shall be Residents, and that a minimum of fifty percent (50%) of . all New Hires shall be Residents. An Employer must achieve these goals or document a good faith effort to achieve these goals. • 11 D. For any new Employer, who obtains certificate of occupancy, which resulted from any new commercial building of 25,000 square feet or more and/or industrial developments 50,000 or more square feet, there is hereby established the following • goals for employment of Palm Springs residents: w 1. Retail Employment: that a minimum fifty percent (50%) of the total workforce shall be Residents, and that a minimum of fifty percent (40%) of • all New Hires shall be Residents. 2. Industrial Employment: that a minimum fifty percent (50%) of the total • workforce shall be Residents, and that a minimum of fifty percent (50%) of all New Hires shall be Residents. E. With respect to Retail Employment and Office, Administrative, and Other Employment and Industrial Employment, any Employer that occupies any portion of the Project site and employs more than ten full time equivalent employees at the site shall have the employment goals as provided for in Section 3(A) or Section 15. The term of this obligation shall be calculated at a rate of one-year for every $100,000 of subsidy . provided by the City to the Project. In no event, however, shall the term of this obligation be less than three (3) years or more than ten (10) years after the completion of any Subsidized Project. F. 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 Section 3(A) 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 Riverside/San Bernardino area 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. G. If, in response to a written request made at least 48 hours (excluding Saturdays, • Sundays and holidays) before the date on which one 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 Labor Code section 1777.5) within 72 hours of • such request (excluding Saturdays, Sundays 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 viable apprenticeship program for that trade or craft serving the Riverside/San Bernardino, 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 S 12 . for the dispatch of apprentices from at least two 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. H. 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. I. A contractor employing apprentices pursuant to this Section shall employ apprentices in a ratio of not less than one apprentice for each five journeymen 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 Code section 1777.5 in which case apprentice employment shall be • at least in the ratios prescribed by California Labor Code section 1777.5. An Employer • must achieve these goals or document a good faith effort to achieve these goals. J. 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. K. Ongoing participation in a state certified apprenticeship, where apprentices, who are residents of Palm Springs or if there no qualified Palm Springs residents, than residents, who resides 15 miles outside the City of Palm Springs's city limits, are utilized in the performance of the city contract will satisfy the "good faith effort" requirement as follows: Credit for three of the above listed employment recruitment activities will be allotted for • each apprentice or trainee who is a resident of Palm Springs and is utilized throughout • the entire city contract. • L. In the event that two or more bids are the same and the lowest, the City shall award the contract to the bidder that made the most significant effort to employ Residents. M. Any business that is a Small Local Business is exempt from the requirements of this . Ordinance. N. If after making a good faith effort, a developers, employer, contractor or • subcontractor is unable to comply to meet 40% goal of qualified Palm Springs residents, employment of qualified individuals from neighboring municipalities may be counted so that no less than 40% of the work force, is comprised of residents of Palm Springs and residents of neighboring municipalities. O. The employer retains authority in making individual hiring decisions. 13 4. Coverage. This Policy shall cover any new commercial building of 25,000 square feet or more and/or buildings of 50,000 square feet or more along with any construction and non-construction jobs, which may arise after the construction is • completed, public works or service contract with the City that has a value of$100,000 or • more, or receiving a Subsidy from the City, as described below: A "Subsidy" is direct or indirect assistance by the City to a Developer that materially benefits the Developer and incurs a material cost to the City including, but not limited to, grants or loans of funds administered by the City, tax abatements or deferrals, issuance of bonds, zone changes, infrastructure improvements made for the purpose of facilitating or supporting a city project, land sale, a ground lease, or other project. To the extent possible, this Policy shall operate in a similar manner in all projects in Palm Springs. The entirety of this Policy shall therefore be included in all disposition • and development agreements, owner participation agreements, and other contracts . entered into by the City, so long as the project to which a particular contract relates has received or will receive a Subsidy. Because this Policy covers a wide range of projects, not every provision of this Policy shall be applicable to any single contractor or employer. This Policy clearly describes which parts are applicable to which entities. Provisions of this Policy that are not • designated as applicable to a particular type of entity are instead applicable to all • entities that agree to the terms of this Policy. Where the application of this policy would violate federal or state law, or would be inconsistent with the terms or conditions of a grant or a contract with an agency of the United States or the State of California, the City department receiving the grant or contract shall, where administratively feasible, segregate federal or state funds from City funds, and/or segregated project administration and contracts, so as to maximize application of this policy to City-funded construction work. • Where the provision of this Policy would by federal or state law, or where the application • of this Policy would violate or be inconsistent with the terms or conditions of a grant or a contract with an agency of the United States or the State of California, and where segregation of funds is not administratively feasible with regard to some or all of the project in question, then The City of Palm Springs Community and Economic • Department, in consultation with the awarding department shall adopt requirements of • this Policy into a set of contract provisions that advance the purposes of this Policy to the maximum extent feasible without conflicting with federal or state law or with terms or conditions of the state or federal grant or contract in question. The awarding . department shall include this set of contract provisions in the public works or improvement contract with regard to the project or portions of the project for which this Policy would conflict with federal or state requirement. Project hours work performed by residents of states other than California shall not be 14 • considered in the calculation of the number of project work hours to which the local hiring requirements apply. Contractors and subcontractors shall report to awarding departments and The City of Palm Springs Community and Economic Department the • number of project work hours performed by residents of states other than California. 5. Responsibilities of Developers. A. Within thirty days of having entered into a disposition and development agreement, an owner participation agreement, or a similar agreement with the City, each Developer • shall designate a contact person for all matters related to implementation of this Policy. The Developer shall forward the name, address and phone number of the designated individual to the City. If the contact person changes, the Developer shall immediately notify the City. B. Each Developer entering into any deed, lease, or contract relating to the construction, rental, sale, lease, use, maintenance, or operation of a City project shall include compliance with the entirety of this Policy as a material term of such deed, . lease, or contract and enter into a First Source Hiring Agreement. The First Source • Hiring Agreement shall establish the hiring process to be followed by the Employer for construction and non-construction hiring to achieve the goals of this Ordinance. It is an operational document, and a model First Source Hiring Agreement is attached hereto to • guide City staff on the necessary provisions for such Agreements. C. Each Developer shall make available to the City all requested records and • information relevant to monitoring and enforcement of this policy, including contracts • between the Developer and other entities. The City shall not use such records or information for any purpose other than monitoring or enforcement of this Policy, and shall not release trade secrets. Each Developer shall allow the City access to job sites . and files during normal business hours, as the City deems necessary to monitor • compliance with this Policy. Each Developer agrees to the provisions regarding monitoring and enforcement of this Policy. . 6. Responsibilities of Developers regarding Award of Construction. Service or • Supply Contracts • A. Developers shall not award any contract covered by this section to any business or • other entity that does not agree to comply with this Policy. Each Developer shall include compliance with the entirety of this Policy as a material term of any contract covered by this section. B. Before a Developer enters into a contract covered by this section and worth over $250,000, the Construction Contractor to whom the contract may be awarded shall prepare and submit to the Developer a list of subcontractors it intends to use and shall • submit documentation to prove that either (i) the 40% subcontracting goal for Small • Local Businesses has been met, or (ii) good faith efforts have been taken to meet this 15 goal. The Developer shall then submit this list and documentation to the City for determination as to whether the local subcontracting goal has been met or whether good faith efforts have been taken. Each Developer agrees not to award a contract . covered by this provision to a contractor that the City determines has not met the local subcontracting goal or the good faith efforts specified in 12(C). Developers may work with the contractor in question and with the City to increase participation by Small Local Businesses if necessary. C. When a Developer awards a contract for services, a contract for supplies, or a small construction contract, the Developer shall make good faith efforts to award the contract • to a Small Local Business. A small construction contract is a construction contract valued at $250,000 or less. For purposes of this section, good faith efforts include: (1) At least two weeks before award of the contract in question, providing notification • of the contracting opportunity, and the procedure for bidding on the contract, to • Small Local Businesses on a list provided by the City; (2) At least two weeks before award of the contract in question, advertising the opportunity to bid in a Designated Local Publication; (3) Where feasible, breaking down the contract into smaller contracts where doing • so would not increase the total cost of the contract by more than 10%; and • (4) Working closely and cooperatively with the City to ensure that Small Local • Businesses are aware of the contracting opportunity and are given an opportunity . to bid. D. Within three days of the award of any contract covered by this section, the awarding i Developer shall provide to the City the following information: the name, address, and telephone number of the business to whom the contract was awarded, whether that business is a Small Local Business, and the projected dollar amount of the contract. The City may assist Construction Contractors by preparing forms to be completed for • this purpose. 7. Responsibilities of EmNovers A. Within thirty days of having entered into a contract related to operations within the • City, each Employer shall designate a contact person for all matters related to implementation of this Policy. Each Employer shall forward the name, address and phone number of the designated individual to the City. If the contact person changes, the Employer shall immediately notify the City. • B. Each Employer entering into any deed, lease, or contract relating to the rental, sale, r♦ lease, use, maintenance, or operation of a City Project shall include compliance with the • 16 • entirety of this Policy as a material term of such deed, lease, or contract and enter into a First Source Hiring Agreement. The First Source Hiring Agreement shall establish the • hiring process to be followed by the Employer for construction and non-construction hiring to achieve the goals of this Ordinance. It is an operational document, and a model First Source Hiring Agreement is attached hereto to guide City staff on the necessary provisions for such Agreements. C. Each Employer shall make available to the City records and information that are relevant to monitoring and enforcement of this Ordinance, including contracts with other entities. The City shall not use such records or information for any purpose other than • monitoring or enforcement of this Ordinance. Each Employer shall cooperate fully and promptly with any inquiry or investigation the City deems necessary in order to monitor compliance with this Ordinance, including allowing access to job sites and employees. • Employers may remove names and social security numbers from requested records to protect the privacy of individual employees, however, the City may require that an Employer provide addresses of individual employees if their actual place of residence is at issue. • 8. Employment by Employers A. As soon as the information is available, each Employer shall provide to the City information regarding the approximate number and type of jobs that will need to be filled • and the basic qualifications necessary. B. Initial Hiring Process. i 1. Good Faith Effort For purposes of this section, good faith efforts shall mean diligent efforts to locate • and employ qualified Residents. Good faith efforts include: i. At least thirty days prior to advertising for any employees and an • Employer commencing operations in the City, the Employer shall notify the City of • available Long Term job openings and provide a clear and complete description of job responsibilities and qualifications, including expectations, salary, work schedule, duration of employment, required standard of appearance, and any special requirements (e.g. language skills, drivers' license, etc.). Job qualifications shall be • limited to skills directly related to performance of job duties. ii. The Employer shall use normal hiring practices, including interviews, to consider all applicants referred by the First Source Referral System during Exclusivity Period after initial notification, or until all open positions are filled, whichever is sooner. The First Source Hiring Referral System shall, as quickly as possible, refer qualified . applicants for available jobs. The Employer shall make good faith efforts to fill all 17 available positions with applicants referred by the First Source Referral System. During this period, the employer shall adhere to the requirements of Exclusivity period. If at the conclusion of the thirty-day period the Employer has been unable to fill all available • positions with applicants referred by the First Source Referral System, the Employer may use other recruitment methods, although the Employer shall continue make good faith efforts to hire applicants later referred by the First Source Referral System. iii. Provisions of this subsection B are not applicable to an Employer that is closing a facility located outside Palm Springs and is transferring the entire staff to a new facility within Palm Springs. Upon commencing operation in the new facility, such an Employer is covered by 8(C), below. • Provisions of this 8(B) are applicable to Employers who hire for positions in facilities located outside Palm Springs with the intention of transferring such hires to a new • facility within Palm Springs upon commencement of operations for the new facility. All such hires shall be made under the provisions of this 8(B). iv. If any of the information submitted to the Palm Springs Community and Economic Development Department (PSCEDD) relating to the number or qualifications of prospective employees or the description of the job to be filled is modified, the employer shall re file a Pre-hiring Notification shall re-commerce. For positions not • covered by this Agreement, the Employer may notify PSCEDD when such positions become available so PSCEDD can notify the community that such opportunities exist C. Ongoing hiring process. (1) After an Employer has commenced operations in the City, it shall continue to use the First Source Hiring Referral System to fill positions that become available. i When an Employer has positions available, the Employer shall notify the First • Source Hiring Referral System of available Long-Term job openings and provide a clear and complete description of job responsibilities and qualifications, including expectations, salary, work schedule, duration of employment, required • standard of appearance, and any special requirements (e.g. language skills, , drivers' license, etc.). Job qualifications shall be limited to skills directly related to performance of job duties. (2) The Employer shall then use standard hiring practices, including interviews, to consider all applicants referred by the First Source Hiring Referral System during a ten-day period after initial notification, or until all open positions are filled, whichever is sooner. The First Source Hiring Referral System shall, as quickly as . possible, refer qualified applicants for available jobs. The Employer shall make • good faith efforts to fill all available positions with applicants referred through the First Source Hiring Referral System. If at the conclusion of the ten-day period the Employer has been unable to fill all available positions with applicants referred by the First Source Hiring Referral System, the Employer may use other recruitment • 18 of commercial disputes. Each party shall bear its own costs of such arbitration and the parties shall equally split the cost of the arbitrator. The arbitrator, upon hearing the • matter, may provide for specific enforcement of this Policy, injunctive relief against the Covered Entity, and/or liquidated damages as described below. 2. The City may file a legal action in a court of law to enforce this Policy. The court may provide for specific enforcement of this Policy, injunctive relief against the Covered Entity, and/or liquidated damages as described below. The court may award reasonable attorneys' fees and costs to the City if it prevails in such an action. 3. The City may suspend or terminate for cause any contract or other agreement between the City and the Covered Entity. 4. If the City owes to the Covered Entity any monetary payments pursuant to a contract or debt, the City may withhold funds in an amount specified below as liquidated damages. If the Covered Entity is a subcontractor on a City-funded construction project, • the City may withhold progress payments to the prime contractor on that project. 5. If the Covered Entity is performing work requiring a construction permit or similar permit issued by the City, the City may suspend or revoke the construction permit or similar permit or may issue a stop work order. 6. If the Covered Entity is engaging in activities requiring a use or occupancy • permit or similar permit issued by the City, the City may suspend or revoke the use or • occupancy permit or similar permit. 7. The City may declare the Covered Entity ineligible for participation in future City public works contracts and or City projects for a period of three years or until • liquidated damages and other restitution have been paid in full, whichever is longer. . C. Because the City actual damages for breach of the terms of this Policy would be • extremely difficult to determine, the City and Covered Entities designate the following pre-estimates of damages for noncompliance with this Policy, to function as liquidated damages. 1. Employer an employee without having followed the procedures specified in this Policy: $1000. 2. Covered Entity awarding a contract without having followed the procedures specified in this Policy: 10% of the value of the contract. 3. Contractor failure to comply with 12, subsection A (subcontracting goal / good • faith efforts): 10% of the value of all subcontracts awarded. Liquidated damages imposed under this subsection shall not be passed on to subcontractors by a Contractor. • 33 4. Contractor failure to comply with 11, subsection A (resident workforce goal / good faith efforts): $500 per day of noncompliance. 5. Failure to comply with any other provision of this Policy: $500 per day of noncompliance. 6. The City reserves any other remedies it may have at law or equity, including but not limited to the termination of the Subsidy or require the Covered Entity to pay back their Subsidy, if appropriate, for a material breach of the Covered Entity's obligation to make a Good Faith Effort to expand Small Local Businesses opportunity or • hire qualified individuals who reside in the City of Palm Springs. • D. If a Covered Entity fails to comply with any provision of this Policy requiring inclusion of this Policy in any deed, lease, or contract, that Covered Entity shall be, jointly and • severally, strictly liable for any damages or attorney's fees incurred due to, or equitable relief made necessary by, that failure of compliance. For purposes of this subsection, the liquidated damages provisions of subsection C., above, shall apply when calculating damages incurred by the City. • Executed this day of 2014. Employer By: CITY OF PALM SPRINGS • By: Approved as to form: City Attorney 34 • FIRST SOURCE HIRING DEVELOPMENT AGREEMENT • BETWEEN THE CITY OF PALM SPRINGS And THIS AGREEMENT is made and entered into this by and between the CITY OF PALM SPRINGS, a municipal corporation represented by the City Manager, acting through the Community and Economic Development Department • (hereinafter referred to as the CITY) and (hereinafter referred to as the • DEVELOPER). Under this agreement, the DEVELOPER agrees to make a good-faith effort defined in the Hire Palm Springs First Ordinance with the assistance of the Palm Springs Workforce Development Center, local workforce development center, local . employment agencies, local labor union hiring halls or other local organizations designated by the City to hire qualified Palm Springs residents into "covered positions" in sufficient numbers so that no less than 40% of the contractor's total construction work force, including any subcontractor work force, measured in labor work hours, is • comprised of Palm Springs residents for the site located at WHEREAS, the City wishes to promote sustainable practices within the business . community by encouraging the hiring of Palm Springs residents in order to reduce . commutes and thereby reduce environmental impacts; and WHEREAS, First Source Hiring policies assist employers in meeting training and employment commitments subject to the limitations set forth in this agreement; and WHEREAS, the DEVELOPER shall make a Good Faith Effort as defined in the Hire • Palm Springs First Ordinance to hire qualified Palm Springs residents and to expand . Small Local Business opportunity through contracting and subcontracting; and WHEREAS, the parties to this Agreement intend to work together in the fulfillment of its terms, thereby ensuring that this project will be an economic asset to the community at • large. NOW THEREFORE, in consideration of the mutual promises and covenants hereinafter • set forth, the parties hereto agree to the following: SECTION I. GENERAL TERMS A. The DEVELOPER and CITY may mutually agree to modify this Agreement in order to improve the working relationship described herein. • 35 B. Employer will comply with the terms of Chapter 7.09.040 of the Palm Springs Municipal Code, Hire Palm Springs First Program (Ordinance), copy attached hereto and incorporated by reference. . C. If this Agreement conflicts with any Federal, State or local laws or regulations, the laws or regulations shall prevail. • D. The DEVELOPER will provide the City with written documentation that the DEVELOPER has provided the representative of any involved collective bargaining • unit, if applicable, with a copy of this Agreement and has requested comments; the DEVELOPER will provide these comments to the CITY. E. First Source Hiring applies to those employees hired specifically for employment resulting from this agreement, and does not apply to for other jobs, or for their company generally. However, contractors are encouraged to hire local residents for other projects they may have in Palm Springs. • SECTION Il. CONSTRUCTION EMPLOYMENT A. DEVELOPER RESPONSIBILITIES It is agreed that the DEVELOPER, and the CITY will carry out the following responsibilities in the implementation of local hiring into construction jobs: • 1. The DEVELOPER is responsible for the performance of the general CONTRACTOR and all SUBCONTRACTORS in complying with the terms of this agreement. 2. The DEVELOPER will include in his/her contract with the General Contractor that all CONTRACTORS must comply with the terms of this agreement, including, but not limited to the terms set forth below. The CONTRACTOR will: a. Utilize local workforce development programs for recruitment and referral of applicants for new and replacement employment. b. Interview and consider qualified Palm Springs residents including those applicants referred by local workforce development programs, in addition to Palm Springs residents that may apply without the assistance of local employment and training programs. • c. Have the sole discretion to make all final hiring decisions. d. Ensure that job specifications/requirements accurately reflect job functions, and do . not constitute intentional or inadvertent discrimination against protected categories. • 36 • . e. Fully document the reason(s) when Palm Springs residents are not hired. f. Provide to the City, upon request, information on the employment status of Palm Springs residents hired as a result of the First Source Hiring Agreement. g. Formally notify all applicable labor unions of the existence of this Agreement with the CITY, and of the company's commitment to be an Equal Opportunity Employer. CONTRACTOR agrees to request labor unions' cooperation in implementing this Agreement. h. Treat all workers employed through this agreement in a manner that is equal to all other employees with comparable employment status with respect to • wages, hours of employment, working conditions, disciplinary action, and in • all other respects. i. Provide payroll records upon request for purposes of First Source • compliance. • SECTION III. NON-CONSTRUCTION EMPLOYMENT A. The CITY and DEVELOPER agree that for purposes of the AGREEMENT, "covered positions" include job openings of employers ("EMPLOYER") as defined in this • section, created as a result of internal promotions, terminations, and expansion of • their workforce. B. EMPLOYERS are defined as the DEVELOPER, building owner, management or ' maintenance company and all commercial tenants of five (5) full time equivalent • (FTE) or more employees, and the successors of each. f C. If this agreement conflicts with a collective bargaining agreement to which the . EMPLOYER is a parry, the bargaining agreement shall prevail. D. DEVELOPERIBUILDING OWNER RESPONSIBILITIES 1. Notify tenants and prospective tenants of the DEVELOPER First-Source Hiring Agreement and of City policies encouraging businesses located in Palm Springs • to make a good faith effort to employ Palm Springs residents. 2. If, during the term of this Agreement, the DEVELOPER, building owner, building management or maintenance company, or any tenant or successor of any of • these should transfer possession or ownership of all or a portion of its business . concerns affected by this Agreement, to any other party by lease, sale, assignment or otherwise, the DEVELOPER shall: a. Advise the CITY within seven (7) days after the signing of the lease, deed, or other documentation of the transfer. The name of the party taking i 37 possession, and/or ownership, and the name and telephone number of that party's representative will be provided to the CITY. b. Advise the party taking possession including tenants and owners of businesses with five (5) FTE or more employees that they shall enter into a • First Source Hiring Agreement with the CITY. c. Include the following lease language in all leases with its tenants of five (5) . FTE or more employees: • "Tenant supports the Equal Opportunity Program set forth in the First Source Hiring Developer Agreement between the Landlord and the City of Palm • Springs (City) regarding employment of City residents and will pursue such goals in their employment practices. Tenant agrees to enter into a First- Source Hiring Employer Agreement with the CITY and to make use of the City's First Source Hiring Referral System as the first source for job • applicants." • E. EMPLOYER RESPONSIBILITIES EMPLOYER responsibilities cover the DEVELOPER, building owner, and the management and/or maintenance company and all tenants of five (5) full time equivalent (FTE) or more employees, and the successors of each. The EMPLOYER • agrees to: 1. Prior to hiring, Employer shall notify the designated City staff, by email or fax, of available job openings and provide a description of job responsibilities and qualifications, including expectations, salary, work schedule, duration of employment, required standard • of appearance, and any special requirements, e.g., language skills, • driver's license, etc. Job qualifications shall be limited to skills directly related to performance of job duties. 2. Interview qualified Palm Springs residents, so long as consistent with applicable local, state and federal fair hiring laws. Employer agrees that Palm Springs residents will receive first consideration for jobs. • 3. Prior to announcing or advertising in any form and by any means (except for compliance with internal posting procedures) the availability of an employment position covered by the Ordinance, • and prior to hiring for such a position, the Employer shall utilize the dual notification process to notify the pertinent union, if appropriate, and the City in writing of such position, including a general • description of the position and Employer's minimum requirements • 38 s for qualified applicants, and shall request any pertinent union and the City to refer qualified applicants for such position to the Employer, the Employer's trade union and/or personnel • representative, as appropriate. The Employer shall refrain from any • general announcement or advertisement of the availability of such position, and shall refrain from hiring anyone other than a qualified Palm Springs resident for such position, for a period of no less than • thirty(30) business days after notification to the City. This thirty-day • period shall be known as the "Exclusivity Period." During this period, Employer shall interview and consider in good faith Palm Springs residents referred by the City or any other source. 4. In the event that any persons seek employment with the Employer at the job site, the Employer shall have the person complete a Job Site Application consisting of name, address, telephone number, . social security number and trade. The Employer will then submit this information to the City. • 5. Nothing contained herein shall prevent the Employer from filling job vacancies or newly created positions without compliance with the foregoing procedures by transfer or promotion from its existing staff. 6. On a monthly basis, furnish certified payroll sheets to City. Failure to provide the City with this information shall result in delay of • progress payments for that portion which is deemed not in • compliance with the provisions of this Agreement, or in other enforcement action. 7. Prepare quarterly reports detailing the number of hires for . employment covered by the Ordinance during the quarter and stating what percentage of such hires were Residents, and what percentage of total workforce was Residents. The Designated City • staff shall assist Employers by preparing forms to be completed for this purpose. Reports shall be filed with the City within thirty days after the completion of each quarter. Reports may include a description of any difficulties the Employer is having with obtaining . qualified referrals through the Designated City staff. 8. Not discriminate against any applicant for employment because of . race, color, religion, ancestry, national origin, age, sex, marital • status, disability, sexual orientation or AIDS. 9. Make good faith efforts comply with the terms of Chapter 7.09.040 . of the Palm Springs Municipal Code, Hire Palm Springs First • Program (Ordinance), copy attached hereto and incorporated by 39 reference to carry out outreach and recruitment of Palm Springs residents 10. Provide to the CITY, upon request, information on the employment . status of First Source-eligible placements. • SECTION III. CITY RESPONSIBILITIES The CITY will: • 1. Ensure that Palm Springs Workforce Development Center, local workforce development center, local employment agencies, local labor union hiring halls or other local organizations designated by the City are notified that the First Source • Agreement is in place. • 2. Work with Palm Springs Workforce Development Center, local workforce development center, local employment agencies, local labor union hiring halls or • other local organizations designated by the City to ensure that they thoroughly screen applicants' experience/qualifications for jobs. 3. Follow up with Palm Springs Workforce Development Center, local workforce development center, local employment agencies, local labor union hiring halls or other local organizations designated by the City and employers on outcome of applicants referred for employment and will initiate corrective actions necessary for an effective employment/training delivery system. • 4. At its discretion, be responsible for monitoring and, where necessary, enforcing compliance with this Agreement. This will be accomplished through periodic • reviews, investigations of grievances and dispute resolution through administrative hearings. Pending conclusion of the hearings, the EMPLOYER can continue normal operations and hiring. 5. At its discretion, review certified payroll or other relevant reports to determine whether the EMPLOYER has maintained good faith efforts to hire and provide opportunities for Palm Springs residents. 6. Coordinate with CITY employment/training agencies to ensure referral of applicants and training in accordance with CITY commitment. 40 • Approval: Dated this day of , 2019_ DEVELOPER (Authorized Signature) . Please Print City Manager 41 S