All contracts awarded by the city, a political subdivision of the city or any department of the city shall be on forms prescribed and approved by the City Council and by the Law Department of the city. Such forms may be periodically revised by the Law Department to ensure compliance with city, state, and federal law and regulations, and city policy.
(A) Forms. The forms shall include the following but not limited to language which shall govern the local hiring provision:
(1) Contractors shall comply with the 50% local hiring requirement on contracts as designated by the city; and
(2) Monitoring of compliance with the local hiring ordinance will be done by the Compliance Officer.
(B) Compliance and reporting.
(1) The contractor shall provide for the maintenance of adequate employee residency records to ensure that actual city residents are employed on the designated construction project. The contractor and its subcontractors shall maintain copies of personnel documents supportive of every city employee’s record of actual residence. The documentation may include but not be limited to the following items: a copy of the employee driver’s license; a valid state ID, a copy of a current utility bill; and/or a copy of the individual voter’s registration card.
(2) (a) Reporting requirements. The contractor shall submit, and shall ensure that all of its subcontractors working on the site submit two copies of certified payrolls for the payment period to the city or its designated representative every week to the city, through its Compliance Officer each week from the start of the project until the project is 100% completed, and the project is closed out.
(b) Duty to submit. The contractor shall have a duty to submit said form on a weekly basis, without demand by the city or its Compliance Officer, but if a demand for said forms are made by the city or its Compliance Officer, the contractor shall certify and submit its certified payroll forms within three days of the demand.
(c) Certified payrolls. Certified payrolls shall be submitted to the city through its Compliance Officer on United States Department of Labor Form WH-347, with supporting documentation. The method of submission (i.e., hard copy or electronic format) shall be determined by the city. Labor classifications, definitions and exemptions contained in 29 C.F.R. § 5 shall apply. The contractor and subcontractors must submit the identical WH-347 form certified and submitted to the U.S. Department of Labor. Where the contractor for any reason fails to submit Form WH-347 or its equivalent to the United States Department of Labor, the Contractor shall still complete and certify the Form WH-347 Certified Payroll Form to the City Compliance Officer within the deadlines provided in this chapter.
(d) Supporting documentation to be submitted with the certified payroll. In addition to Certified Payroll Form WH-347, the contractor and all of its subcontractors shall identify clearly the actual residence of every employee on each submitted certified payroll, the first time that an employee’s name appears on a payroll, the date that the company hired the employee should be written in after the employee’s name. Whereby contractor has identified an employee as a city resident, at least two of the following forms of documentation shall accompany the certified payroll whereby the employee’s name first occurs:
1. A copy of the employee driver’s license;
2. A valid state ID, or other valid government issued identification card;
3. A copy of a current utility bill in the employee’s name.
4. A copy of the individual voter’s registration card.
(e) Identification. All payrolls must be identified with the Contractor and/or subcontractor’s name and contract name and number, and must be sequentially numbered. The contractor shall ensure that its payrolls and its subcontractor’s payrolls are submitted until all work by the contractor and/or subcontractor is completed. If there are periods of no work by the contractor and/or subcontractor, a payroll labeled “no work” shall be submitted. The final payroll shall be labeled “final.” Certified payrolls are required to assure workforce hiring compliance as well as wage compliance. Race, ethnicity, worker classification, Social Security number and gender must be clearly marked for each employee on the certified payroll along with all additional information required by the city. An employee’s address should appear every time his or her name appears on the payroll. The contractor must submit the certified payrolls and additional information regarding workforce hiring and wage compliance by providing a payroll summary report in the form required by the city. The payroll summary report form required by the city and the United States Department of Labor must be submitted by contractor and each subcontractor, reflecting fully the periods of work covered by the partial payment request.
(3) Full access to the contractor and its subcontractors’ employment records shall be granted to the city, or any duly authorized representative thereof. The contractor and subcontractors shall maintain all relevant personnel data for a period of at least three years after final acceptance of the work.
(4) At the direction of the city, affidavits and other supporting documentation will be required of the contractor to verify or clarify an employee’s actual address or change of actual address when doubt or lack of clarity has arisen.
(C) Noncompliance.
(1) Good faith efforts on the part of the contractor to provide utilization of actual city residents shall not suffice to replace the actual, verified achievement of the requirement concerning the worker hours performed by actual city residents.
(2) The city may impose the following remedies if the contractor is found to be in noncompliance in achieving the workforce-hiring requirement as cited in this subchapter:
(a) Stop work on contract until compliance is reached;
(b) Suspension of payments; and
(c) Termination of the contract.
(3) If the contractor is permitted to complete the work and when work is completed, and the city has determined that the contractor failed to ensure the fulfillment of the requirement of this subchapter concerning the worker hours performed by actual city residents, or has failed to report in the manner indicated above under division (B) above, the city will thereby be damaged in the failure to provide the benefit of demonstrable employment to city residents to the degree stipulated in this supplementary condition. Therefore, in that case of noncompliance it is agreed that one-tenth of 1%, of the adjusted contract price (approved contract value) shall be withheld by the city in payment for each full one percentage of shortfall toward the stipulated residency requirements. Failure to report the residency and hours of all employees entirely and correctly shall result in the surrender of the entire liquidated damages as if no city residents were employed. The formula shall be calculated as such:
.0010 x Adjusted Base Amount = Sum x Net Deficiency = Potential Damage Amount
(4) The willful falsification of statements and the certification of payroll data may subject the contractor, subcontractors, or employee to prosecution.
(5) Liquidated damages, if any, will be calculated on completion of the work and submission of the contractor’s final pay request together with all attendant certified payrolls, schedules of values, lien releases, and other required documentation of workforce hiring.
(6) Nothing herein provided shall be construed to be a limitation upon or exemption from any other affirmative action requirements under the regulations promulgated by applicable federal, state, or local authorities.
(7) (a) The monetary damages stipulated in division (B) above may be adjusted by the city to represent a larger fraction of the adjusted contract price, if the city determines after a review of contractor’s compliance with this section that the damages are insufficient to secure compliance herewith.
(b) In no event may damages be adjusted to a lower fraction.
(c) In addition to assessing the monetary damages stipulated in division (B) above, the city may, in lieu of declaring the contractor to be a non-responsible bidder, require the contractor to post a surety bond or other appropriate security in an amount representing 10% of the contract price for subsequent contracts on which the contractor bids, which the contractor shall agree to forfeit in its entirety in the event that full compliance with the requirements of this section is not achieved during the performance of any future contract that the contractor enters with the city.
(Prior Code, § 39.07) (Ord. 0-04-0005, passed 2-20-2004; Ord. 0-05-0020, passed 6-13-2005; Ord. 15-0030, passed 12-28-2015)