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HomeMy Public PortalAbout015-1985- DIRECTING THE RICHMOND ECONOMIC DEVELOPMENT COMMISSION OR THE COMMUNITY AND ECONOMIC DEVELOPMENT LOAN FUND BOARDAMENDED ORDINANCE NO. 15-1985 AN ORDINANCE ➢IRECTING THE RICHMOND ECONOMIC DEVELOPMENT COMMISSION OR THE COMMUNITY AND ECONOMIC DEVELOPMENT LOAN FUND BOARD TO RECOMMEND THAT CONTRACTORS FOR APPROVED ECONOMIC DEVELOPMENT AND INVESTMENT INCENTIVE PROJECTS TO SET AS A GOAL THE EMPLOYMENT OF WAYNE COUNTY RESIDENTS AND TO PAY PREVAILING WAGES TO ALL WORKERS EMPLOYED ON APPROVED PROJECT. WHEREAS, the City of Richmond, Indiana ("City") is a municipal corporation and political subdivison of the State of Indiana and by virtue of Indiana Code Section 36-7-12--1 et seq., as amended (the "Act") is authorized and empowered to adopt this Ordinance (the 'Ordinance") and to carry out its provisions; and WHEREAS, there is a high rate of unemployment among residents of the City of Richmond and of Wayne County and such high rate of unemployment constitutes substantial reason for this ordinance; and WHEREAS, there is a particularly high rate of unemployment among residents of the City of Richmond and Wayne County who have worked or seek work in the construction industry; and WHEREAS, under the laws of the State of Indiana, the Economic Development Commission of the City of Richmond has authority to approve projects found to promote local economic development and to issue tax-free bonds and otherwise assist in financing such projects; and WHEREAS, under city ordinance the Community and Economic Development Loan Fund Board has authority to loan money for Investment Incentive Projects; and WHEREAS, the Economic Development Commission and the Community and Economic Development Loan Fund Board have a duty to exercise its authority in a manner which will promote local economic development and will also serve the interests of the City of Richmond and Wayne County in the continued economic vitality of the area and in the enhancement of local employment opportunities; and WHEREAS, payment of prevailing wages on projects approved and financed by the Richmond Economic Development Commission or Investment Incentive Projects approved by the Community and Economic Development Loan Board will protect local workers from substandard wages, will assure quality workmanship on such projects, and will promote the economic vitality of the area; NOW, THEREFORE BE IT ORDAINED by the Common Council of the City of Richmond, Indiana, that the following be added as Chapter 6, Economic Development to the Richmond City Code: SECTION 6.01 On any construction project approved by the Richmond Economic Development Commission or the Community and Economic Development Loan Fund Board and financed in whole or in part by proceeds from sale of Economic Development Bonds or approved by or financed through any City Agency, Board, Committed or Commission, pursuant to an Investment Incentive Program, the Economic Development Commission or the Community and Economic Development Loan Fund Board shall recommend that the contractor set as a goal the employment of at least 50% of the worker hours on a craft -by -craft basis, to be performed by bona fide residents of the City of Richmond or Wayne County, and the employment of at least 10% minorities on a craft -by -craft basis. SECTION 6.02 On any construction project approved by the Richmond Economic Development Commission or the Community and Economic Development Loan Fund Board, and financed in whole or in part by proceeds from sale of Economic Development Bonds, or approved by or financed through any City Agency, Board, Committee or Commission, pursuant to an Investment Incentive Program, contractors retained to complete the project shall be required to pay the employed on the project wages equal to the prevailing wage customarily paid to each class of workmen engaged in similar work in Richmond and surrounding area. SECTION 6.03 For purposes of determining the prevailing wages to be paid under this Ordinance, determination in accordance with Indiana State and Local Administration 5-16-7-1, shall be controlling. ovnmTnW c ni For purposes of defining minorities in Section 6.01, those minorities shall consist of a pool of females, Hispanics, blacks, Asians and Native Americans. c L'nm- L AC This Ordinance shall be in full force and effect immediately upon its adoption by the Common Council and approved by the Mayor. PASSED AND ADOPTED by the Common Council of the City of Richmond, Indiana, this _L�'� day off1985. Pretsident of Common Council ATTEST:�Zaiw City Cl rk PRESENTED by me to the Mayor of the City of Richmond, Indiana, this %g day of `p�ci..�B.V. 1985. APPROVED by me, Frank H. Waltermann, Mayor of the City of Richmond, Indiana, this�_9 ZZ day of S?9,6u1985. Mayor ATTEST: I 4s4 City Clerk/ PROCEEDINGS OF A Vff9MM OF THE COMMON COUNCIL OF_THE _CITY OF RIC ID,INDIANA MMTING AS A CMff= OF THE WHOLE MAY 23, 1985 1 The Common Council of the City of Richmond, Indiana met in special session as 2 a Committee of the Whole on May 23, 1985 at 7:00 P.M. in the Board of Works Roan 3 in the Municipal Building in said City. President Pro-tem Lemoine presided with 4 the following members present: Councilmembers Elstro, Williams, Brookbank, 5 Parker, Hankinson and Morris. Absent: Whitesell and Bodiker. The following 6 business was had to -wit: 7 8 ORDINANCES NO. 11, 12 and 13-1985 9 10 Councilmember Morris moved to return Ordinances No. 11, 12 and 13-1985 from the 11 Committee of the Whole to their proper place on the Agenda at the June 3, 1985 12 meeting of the Common Council, seconded by Councilmember Brookbank and on 13 unanimous voice vote the motion was carried. 14 15 CRDINANCE NO. 15-1985 - AN ORDINANCE DIRECTING THE RICHMOND ECONOMIC DEVELOPMENT 16 COMMISSION TO REQUIRE CONTRACTORS FOR APPROVED ECONOMIC DEVELOPMENT AND INVESTMENT 17 INCENTIVE PROJECTS TO SET AS A GOAL THE EMPLOYMENT OF WAYNE COUNTY RESIDENTS AND 18 TO PAY PREVAILING WAGES TO ALL WORKERS EMPLOYED ON APPROVED PROJECTS. 19 20 President Pro-tem Lemoine opened the hearing of the Council Committee of the Whole 21 on Ordinance No. 15-1985. She requested those speaking in support of the Ordinance 22 make their presentations. 23 24 Speaking for Ordinance No. 15-1985 was Mr. Ed Brumbaugh, representing Carpenter's 25 & Milwrights's Eastern Indiana District Council. Mr. Brumbaugh told the Council 26 that with the current unemployment rates members of the building trades are not 27 insured in the area of wages or hiring locally. The unemployment rates 28 among the building trades is as high as 60%. He said that they are employed by 29 multi -employer situations and the employer is not always an area contractor. 30 Mr. Brumbaugh told the Council that such projects as Wayne Bank & Trust and Heritage 31 Regency were predominately out of town contractors and labor. 32 33 Mr. Brumbaugh stated that the low morab of the community is directly related 34 to the unemployment problems within the community. He said that this ordinance 35 will bolster and show support for the laborer's of the community. 36 37 Also speaking in support of Ordinance No. 15-1985 was Mr. Jeff Laughner, Secretary- 38 Treasurer of the Indiana State Building Trades. Mr. Laughner stated that he supports 39 this ordinance and that the context translates into econanic fairness. He said 40 that when taxes are used to support private enterprise, wages should go into the 41 pockets of the people and contractors in the local community. The funds should 42 be kept within the community and not carried out of the area. 43 44 Mr. Laughner stated that the prevailing wage should be included to protect the 45 small businesses. 46 47 Councilmember Morris asked if other cities have ordinances like this and he 48 stated that other cities have it for consideration, but have not adopted it yet. 49 50 Also speaking for Ordinance No. 15-1985 was Mr. Ed Brubeck, representing Central Committee of the Whole Minutes Cont'd May 23, 1985 Page 2 1 and West Indiana District Council of Carpenters. 2 3 Mr. Brubeck stated that the prevailing wage law was felt necessary because it 4 creates a better class and more competant workmen. If they are more competant 5 they are able to do jobs better and cheaper. 6 7 Mr. Brubeck stated that out of town contractors bringing in their own crews create 8 other problems for communities such as fights, etc and also perform shoddy 9 workmanship. He stated that Mayors around the State such as Mayor Hatcher and 10 Mayor Hudnut endorse the use of prevailing wage. He also said that contractors 11 using prevailing wage have good workers and safety programs. 12 13 Councilmember Morris asked what formula is used to figure prevailing wage and 14 Mr. Brubeck explained it is figured by a survey of wages on similar projects 15 in Richmond. 16 17 Councilmember Williams commented that he was in support of the ordinance and has 18 19 opppsed bond issues not hiring mi-poritips,_apd paying lath issues. 20 21 Also speaking in support of Ordinance No. 15-1985 was Mr. Jim Bryant, President 22 of Eastern Indiana AFL-CIO Central Labor Council. Mr. Bryant stated that he was 23 not associated with the Building Trades, but trying to encourage a means by which 24 local people might obtain work within this area. He said there is high 25 unemployment with the entire community and the City has a method of promoting 26 the use of local labor. He asked the support of the Caumon Council as an obligation 27 to the local people. 28 29 Also speaking in favor of Ordinance No. 15-1985 was Max Duke, 105 South 15th Street. 30 Mr. Duke told the Council that the ordinance is a step in the right direction 31 for the community. He carnmented on the recent Needs Assessment showing the 32 problem of unemployment being the number one concern. Mr. Duke said the 33 ordinance speaks to that problem by promoting local jobs at decent pay for the 34 betterment of the community. 35 36 Also speaking was Mr. Steve Geier, President of Eastern Indiana District Council 37 of Carpenters. Mr. Geier stated that he has worked construction in the area the 38 last ten (10) to twelve (12) years and he has lived with the travel and it is 39 hard to see out of towners in your community doing work when unemployment is high 40 in the community. He said there is a lot of mental stress involved and many 41 people leave the caimlunity to find other employment. 42 43 Councilmember Brookbank asked why businesses go out of town for contractors and 44 Mr. Brumbaugh stated that they seek bids outside of the community for 45 comparison factors and that this is not the issue. He said that a lot of time 46 the prevailing wage issue is used to get the bid by being able to bid lower on 47 lower labor rates. Mr. Brumbaugh stated they are not asking for only local 48 contractors just hiring of local workers and prevailing wages being paid. 49 50 Councilmember Morris asked about the meaning of investment incentive projects 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Ccaimiittee of the Whole Minutes Cont' d May 23, 1985 Page 3 as referred to in the ordinance and stated that the Economic Development Commission has no authority over projects financed by such funds as Revolving Loan Fund or Economic Development Administration. Councilmember Elstro stated that all have read the ordinance and he would appreciate being informed prior to the council meeting of discrepencies in the ordinance. City Attorney Ken Barden told the Council they need to address certain requirements when considering this ordinance_ He said the Council will need to have a factual basis set forth supporting the need for the ordinance, hard facts will be needed. Mr. Barden asked Mr. Brumbaugh to furnish actual figures for the Council and also that the minutes of this meeting be transcribed and adopted by reference as a part of the ordinance for future reference. Also speaking for the ordinance was Mr. Frank DeGraw. Mr. DeGraw told the Council that he was not representing unions, just laborers and was in support of the ordinance. Councilmember Parker stated that Section 6.01 should be nailed down closer with reference to surrounding area since surrounding area could possibly include Indianapolis. Mr. Brumbaugh informed the Council that Union edicts differ and not all locals in the building trades are out of Richmond and they might not be able to limit it to only Wayne County. Councilmember Parker said that he felt it was still watered down and that it could be nailed down to a mile radius. He said that when the local is out of town they would still have to provide the local labor if it was a part of the ordinance. ADJOURNMENT There being no further business the meeting was adjourned by concensus of the Council. ATTEST: Mary Merchanthouse, City Clerk Joan Apple Lemoine, President Pro -term Common Council of the City of Richmond, Indiana NOTICE OF HEARING ON OFtDIMNCE NO. 15-1985, AS AMMMED Notice is hereby given that the Cannon Council of the City of Richmond, Wayne County, Indiana, will hold a public hearing on the 1st day of July, 1985 at 7:30 P.M. in the Council Chambers of the Richmond Municipal Building on Ordinance No. 15-1985 - AN ORDINANCE DIRECTING THE RICHMOND ECONCKIC DEVELOPMENT' COMMISSION TO REQUIRE CONTRACTORS FOR APPROVED ECONOMIC DEVELOPMENT AND INVFSTMEU INCENTIVE PROJECTS TO SET AS A GOAL THE EMPLOYMENT OF'WAYNE COUNPY RESIDENTS AND TO PAY PREVAILING WAGES TO ALL WO=S EMPLOYED ON APPROVED PROJECTS. All parties interested in or affected by this Ordinance are invited to attend the public hearing to speak in favor of or opposition to said Ordinance. Publish Date: June 22, 1985 Mary Merchanthouse City Clerk Received by/ Date Received ORDINANCE NO. 15-1985 AN ORDINANCE DIRECTING THE RICHMOND ECONOMIC DEVELOPMENT COMMISSION TO REQUIRE CONTRACTORS FOR APPROVED ECONOMIC DEVELOPMENT AND INVESTMENT INCENTIVE PROJECTS TO SET AS A GOAL THE EMPLOYMENT OF WAYNE COUNTY RESIDENTS AND TO PAY PREVAILING WAGES TO ALL WORKERS EMPLOYED ON APPROVE➢ PROJECT. WHEREAS, the City of Richmond, Indiana ("City") is a municipal corporation and political subdivison of the State of Indiana and by virtue of Indiana Code Section 36-7-12-1 et seq., as amended (the "Act") is authorized and empowered to adopt this Ordinance (the "Ordinance") and to carry out its provisions; and WHEREAS, there is a high rate of unemployment among residents of the City of Richmond and of the surrounding areas of Wayne County and such high rate of unemployment constitutes substantial reason for this ordinance; and WHEREAS, there is a particularly high rate of unemployment among residents of the City of Richmond and the surrounding areas of Wayne County who have worked or seek work in the construction industry; and WHEREAS, under the laws of the State of Indiana, the Economic Development Commission of the City of Richmond has authority to approve projects found to promote local economic development and to issue tax-free bonds and otherwise assist in financing such projects; and WHEREAS, the Economic Development Commission has a duty to exercise its authority in a manner which will promote local economic development and will also serve the interests of the City of Richmond and the surrounding areas of Wayne County in the continued economic vitality of the area and in the enhancement of local employment opportunities; and WHEREAS, payment of prevailing wages on projects approved and financed by the Richmond Economic Development Commission will protect local workers from substandard wages, will assure quality workmanship on such projects, and will promote the economic vitality of the area; NOW, THEREFORE BE IT ORDAINED by the Common Council of the City of Richmond, Indiana, that the following be added as Chapter 6, Economic Development to the Richmond City Code: SECTION 6.01 On any construction project approved by the Richmond Economic Development Commission and financed in whole or in part by proceeds from sale of Economic Development Bonds or financed pursuant to an Investment Incentive Program, the Economic Development Commission shall require the contractor to set as a goal the employment of at least 50% of the worker hours on a craft -by -craft basis, to be performed by bona fide residents of the City of Richmond or surrounding areas of Wayne County, and the employment of at least 10% minorities on a craft -by -craft basis. SECTION 6.02 On any construction project approved by the Richmond Economic Development Commission and financed in whole or in part by proceeds from sale of Economic Development Bonds, or financed pursuant to an Investment Incentive Program, contractors retained to complete the project shall be required to pay the workmen employed on the project wages equal to the prevailing wage customarily paid to each class of workmen engaged in similar work in Richmond and the surrounding area. SECTION 6.03 For purposes of determining the prevailing wages to be paid under this Ordinance, determination of the United States Secretary of Labor pursuant to 40 U.S.C. Section 276(a) shall be controlling. Where no applicable determination by the Secretary of Labor with respect to a job or class of jobs has been made, the prevailing wage shall be set by the Secretary of Labor for similar or related work in a comparable geographical area as determined by the Economic Development Commission. SECTION 6.04 For purposes of defining minorities in Section 6.01, those minorities shall consist of a pool of females, Hispanics, blacks, Asians and Native Americans. SECTION 6.05 This Ordinance shall be in full force and effect immediately upon its adoption by the Common Council and approved by the Mayor. PASSED AN➢ ADOPTED by the Common Council of the City of Richmond, Indiana, this day of _, 1985. President of Common Council ATTEST: City Clerk PRESENTED by me to the Mayor of the City of Richmond, Indiana, this day of . 1985. City Clerk APPROVED by me, Frank H. Waltermann, Mayor of the City of Richmond, Indiana, this day of , 1985. Mayor ATTEST: City Clerk