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HomeMy WebLinkAboutReso 96-154 - Approving Adoption of the New Section 3 Plan for Increased Economic Opportunities in Federally-Funded Programs . ' ' � � RESOLUTION NO. �G-/.S� A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING ADOPTION OF THE NEW SECTION 3 PLAN FOR INCREASED ECONOMIC OPPORTUNITIES IN FEDERALLY-FUNDED PROGRAMS WHEREAS, the CITY has received ongoing federal assistance from the Department of Housing and Community Development (HUD) since 1975; and WHEREAS, HUD requires that the City of Redding comply with the regulations of Title 24, Part 135, Employment Opportunities for Businesses and Lower-Income Persons in Connection with Assisted Project, which implement Section 3; and WHEREAS, the City Council has studied the attached Section 3 Plan required by HUD in connection with current and.future federally-funded programs and has agreed to same; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding that the Section 3 Plan, attached hereto as Exhibit "C," is hereby approved and adopted as the Section 3 Plan to be used by HUD-funded programs under the direction of the City of Redding. I HEREBY CERTIFY that the foregoing resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 20th day of August 1996, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: P. Anderson, R. Anderson, Kehoe, Murray and McGeorge NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None , C DAVID . EO , Ma City of Redding AT�EST: CONNIE STROF-�MAYE ity Clerk FORM APPROVED: ,�� � �� � � `l���L .�,�� � W. LEONARD WINGA'T , City Attorney � 1 \. � ` � CITY OF REDDING � SECTION 3 PLAN Section 3 is a provision of the Housing and Urban Development Act. of 1968 which requires that programs of direct financial assistance administered by the U.S. Department of Housing and Urban Development (HUD) provide, to the greatest extent feasible, opportunities for job training and employment to lower-income residents in connection with projects in their neighborhoods. Further, to the greatest extent feasible, contracts in connection with these projects are to be awarded to local businesses. Section 3 is a tool for fostering local economic development, neighborhood economic improvement and individual self-sufficiency. Statute: Section 3 of the HUD Act of 1968, as amended Regulation: 24 CFR Part 135, "Empioyment Opportunities for Businesses and Lower-Income Persons in Connection with Assisted Projects" (Reserved) " � This project is funded through the Housing and Urban Development Act of 1968. Section 3 of that Act requires contractors and subcontractors (this includes Housing Authorities) to assure that: • Lower-income project area residents have the maximum opportunity for employment and training on this project; and • Small businesses located in the project area, or owned in substantial part by persons residing in the project area, will be utilized to the fullest extent possible as recipients of contracts. To compiy with this requirement, the lowest responsible bidder and applicable subcontractors must either adopt and file the attached approved Section 3 Affirmative Action Plan or develop and file their own Section 3 Affirmative Action Plan with the City of Redding. A Section 3 Plan shall be required for all contract awards. The Section 3 Plan shall be submitted from the prime contractor and each applicable subcontractor prior to the award of the contract. Compliance with Section 3 regulations shall be required of all contractors and subcontractors receiving direct or indirect federal funding under HUD programs. Failure to adopt the Section 3 Plan is considered to be non-responsive and shall be grounds for rejection of the bid. Master Section 3 Plans are based upon federal guideiines. Contractors and/or subcontractors who wish to develop their own Section 3 Affirmative Action Plan may obtain the applicable federal guideiines f�om the City of Redding Housing Division. All contractors and subcontractors must sign the Section 3 Assurance which is included in the bid package, regardless of the amount of the contract or subcontract award. Failure to sign the Section 3 Assurance is considered to be non-responsive and shall be grounds for �ejection of the bid. Exhibit C , ' ' � • I. SECTION 3 PLAN , A. PREFERENCE FOR SECTION 3 RESIDENTS IN TRAINING AND EMPLOYMENT OPPORTUNITIES 1 . Order of providing preference. The City of Redding, contractors, and subcontractors shall direct their efforts to provide, to the greatest extent feasible, training, and employment opportunities generated from the expenditure o# Section 3 covered assistance to Section 3 residents in the order of priority provided below: Housing and Community Deve%pment P�ograms. In housing and community development programs, priority consideration shall be given, where feasible, to: a. Section 3 residents in the City of Redding (collectively, referred to as category 1 residents); and b. Participants in HUD Youthbuild programs (category 2 residents); c. Where the Section 3 project is assisted under the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11301 et seq). homeless persons residing in the City of Redding shall be given the highest priority; d. Participants in the Section 8 Certificate or Voucher Program; e. Other Section 3 residents. 2. Eligibility of Preference. A Section 3 resident seeking preference in training and employment shall certify, or submit evidence to the City of Redding, the contractor or subcontractor, if requested, that the person is a Section 3 resident. (An example of evidence of eligibility for the preference is evidence of receipt of public assistance, or evidence of participation in a public assistance program.) 3. Eligibility for Employment. Nothing in this Section shall be construed to require the employment of a Section 3 resident who does not meet the qualifications of the position to be filled. B. PREFERENCE FOR SECTION 3 BUSINESS CONCERNS IN CONTRACTING OPPORTUNITIES 1 . Order of Providing Preference. The City of Redding, contractors, and subcontractors shall direct their efforts to award Section 3 covered contracts, to the greatest extend feasible, to Section 3 business concerns in the order of priority provided below:.: -:: �:�--� - -� - -� - - Section 3 Plan Paqe 1 .. • • a. Housing and Comrriunity Deve%pment Programs. In housing and community development programs, priority consideration shall be given where feasible, to: (1) Section 3 business concerns that provide economic opportunities for Section 3 residents in the service area or neighborhood in which the Section 3 covered project is located (category 1 businesses); and (2) Applicants (as this term is defined in 42 U.S.C. 12899) selected to carry out HUD Youthbuild programs (category 2 businesses); (3) Other Section 3 business concerns. 2. Etigibility for Preference. A business concern seeking to qualify for a Section 3 contracting preference shall certify or submit evidence, if requested, that the business concern is a Section 3 business concern as defined above. 3. Ability to Comp/ete Contract. A Section 3 business concern seeking a contract or a subcontract shall submit evidence to the City of Redding, the contractor, or subcontractor (as applicable), if requested, sufficient to demonstrate to the satisfaction of the City of Redding that the business concern is responsible and has the ability to perform successfully under the terms and conditions of the proposed contract. (The ability to perform successfully under the terms and conditions of the proposed contract is required of all contractors and subcontractors subject to the procurement standards of 24 CFR 85.36 (see 24 CFR 85.36(b)(8).) This regulation requires consideration of, among other factors, the potentiat contractor's record in complying with public policy requirements. Section 3 compliance is a matter properly considered as part of this determination. C. AWARD OF CONTRACTS 1 . Bids shall be solicited from ail interested businesses (Section 3 business concerns, and non-Section 3 business concerns). An award shall be made to the qualified Section 3 business concern with the highest priority ranking and with the lowest responsible bid if that bid: a. Is within the maximum total contract price established in the City of Redding's budget for the specific project for which bids are being taken, and b. Is not more than "X" higher than the total bid price of the lowest responsibfe bid from any respon.sible...bidder...... "X" .is......... ... .. ..: ...... . .. ....:..:. ... determined as follows: .. .. ... ... ... ... ... ::: ... Section 3 P/an Page 2 . ' ' � � When the lowest responsive bid is: less than 5100,000 . . . . . . . . . . . . . . . . . . . 10% of that bid or 59,000 When the lowest responsive bid is: at least $100,000, but less than 5200,000 . . . 9% of that bid, or 516,000 at least $200,000, but less than 5300,000 . . . 8% of that bid, or $21,000 at least 5300,000, but less than S400,000 . . . 7% of that bid, or $24,000 at least S400,000, but less than 5500,000 . . . 6% of that bid, or 525,000 at least S 500,000, but less than S 1 million . . . 5% of that bid, or 540,000 at least S 1 million, but less than S2 million . . . . 4% of that bid, or 560,000 at least S2 million, but less than S4 million . . . . 3% of that bid, or $80,000 at least 54 million, but less than $7 million . . . 2% of that bid, or $105,000 S7 million, or more . . . . . . . . . . . . 1-1 '/Z% of the lowest responsive bid, with no doflar limit 2. If no responsible bid by a Section 3 business concern meets the requirements of Paragraph 1 above, the contract shall be awarded to a non-Section 3 bidder with the lowest responsible bid. 3. If the contract is to be awarded based on a factor other than price, such as a contract for architectural services, the contract shail be awarded to the most qualified firm based upon a rating system which assigns points to evaluate the merits of each proposal. The rating system shall provide for a range of 15-25 percent of the number of available rating points to be set aside for the provision of preference for Section 3 businesses. Section 3 Plan Paqe 3 . ' � ' . • DEFINITIONS � Housing Deve%pment: Low-income housing, owned, developed, or operated by Public Housing Agencies. New Hires: Full-time empioyees for permanent, temporary, or seasonat employment opportunities. Section 3 Business Concern: Business concern; 1) that is 51 % or more owned by Section 3 residents; or 2) whose permanent full-time employees include persons, at least 30% of whom are currently Section 3 residents, but within three years of the date of first employment with the business concern for Section 3 residents; or 3) that provides evidence of a commitment to be subcontracted in excess of 25% of the doilar award of all contracts to be awarded to business concerns that meet the qualification set forth in "Section 3 business concern." Section 3 Covered Contract: A contract or subcontract (including a professional service contract) awarded by a recipient or contractor for work generated by the expenditure of Section 3 covered assistance or for work arising in connection with Section 3 covered assistance. 1 . Section 3 covered contracts do not include contracts for the purchase of supplies and materials unless installation of those materials is called for. In that case it becomes a Section 3 covered contract. Section 3 Covered Project: Construction, reconstruction, conversion or rehabilitation of housing (including reduction and abatement of lead-based paint hazards) or public construction which includes buildings or improvements (regardless of ownership) assisted with housing or community development assistance. Section 3 Resident: A recipient of HUD-assisted housing; or an individual who resides in the metro area in which the Section 3 covered assistance is expended and who is: 1 . A low-income person, i.e., families (including single persons) whose incomes do not exceed 80% of the median income for the area, as determined by HUD, or; 2. A very low-income person, i.e., meaning families (including single persons) whose income does not exceed 50% of the median family income for the area, and; 3. A person seeking the training and employment preference provided by Section 3 bears a responsibility of providing evidence (if requested) that the person is eligible for the preference. Subcontractor: Any entity (other than a person who is an employee of the contractor) that has a contract with a contractor to undertake a portion of the contractor's obligation for the performance of work generated by the expenditure of Section 3 covered .. .... ........: .._._............ .. .... .... .... .. ... assistance. _ . ... ... _... ,.... .. . Section 3 Plan PaaP a . ' ' . • ClTY OF REDDING SECTION 3 IMPLEMENTATION STRATEGY The City of Redding has adopted the following Section 3 implementation strategy in an effort to meet its responsibilities under Section 3 of the Housing and Community Development Act. A. Strategies for Expanding Contracting Opportunities for Section 3 Businesses and Low-income Persons • The City shall participate in local workshops which may be attended by eligible Section 3 businesses. • The City shall consult the Regional HUD Office of FHEO to obtain a listing of local businesses which qualify as Section 3 businesses. Section 3 businesses identified will be placed on the City's contractor bid list and be provided with bid and RFP announcements. • The City will explore contracting with residents or resident owned businesses for work contracted out by the City. • The City will include the Section 3 clause in all contracts and encourage general contractors to consider contracting with Section 3 businesses for subcontract work. The City will, as part of its bid documents, include the following: • The City's Section 3 goals for jobs, training, and Section 3 businesses. • If avaiiable, a list of Section 3 businesses and subcontractors interested in work related to the contract being bid. • A Section 3 Affirmative Action Plan is to be submitted by all contractors submitting bids. The Section 3 plan will.serve as the key mechanism for insuring that contractors make an affirmative effort in meeting the contracting employment, and training requirements under Section 3. The Plan will also serve as one basis for monitoring performance and evaluating the City's Section 3 effort. • The City's Section 3 Plan requirements will be discussed as part of the pre-bid meetings for these contracts. The City will divide contract work up to allow greater opportunities for participation by Section 3 businesses. The City will conduct outreach activities as part of its effort to notify Section 3 area businesses of construction, purchasing, and service contract opportunities. ,_ .... .... _.. ... ............. . These outreach activities will include advertising in the local°meciia;��sending�notices � �� to local organizations, businesses, builders, and contractor associations/plan rooms. . ' " • � • B. Strategies for Expanding Training Opportunities for Section 3 Area Residents • The City will establish a Skill Level Training Registry to aid in identifying residents of public housing interested in training. • The City will alert residents to local training opportunities. • The City will coordinate training efforts with local PIC programs. • The City will offer its work sites as job training sites for PIC, Gain, and other job training programs. • The City shall encourage contractors and subcontractors to provide on-the-job training opportunities for residents. (See Section 3 Plan under A above.) C. Strategies for Expanding Job Opportunities for Section 3 Area Residents • The City will establish an Employment Interest Registry to aid in identifying residents interested in employment opportunities. • The City will announce City job opportunities to residents through its registry and encourage resident applications for these opportunities. • The City will refer residents identified th�ough its Employment Interest Registry to possible job opportunities with contractors and subcontractors under contract to complete work for the City. (See Section 3 Plan under A above.) D. Annual Goals • The City will affirmatively pursue meeting the Department of Housing and Urban Development's Section 3 training, employment, and contract goals for fiscal year 1995, 1996, and 1997. The City's progress towards meeting these goals shall be reviewed annually and based on that review, the City shall revise and/or adjust its efforts as may be necessary. . , � • � • SECTION 3 COMPLAINT ANp COMPLIANCE REVIEW Complaints may be filed by any Section 3 resident on behalf of himself or herself, or a representative who is not a Section 3 resident but represents one or more Section 3 residents or any Section 3 business concern on behalf of itself or as a representative of other Section 3 business concerns, or by an individual representative of Section 3 business concerns. The complaint is to be filed with the Assistant Secretary for Fair Housing and Equal Opportunity of the U.S. Department of Housing and Urban Deveiopment and should be received by the Assistant Secretary not later than 180 days from the date of the action or omission upon which the compfaint is based. The complaint is to be in writing, signed by the complainant and must include the complainant's name and address; the name and address of the respondent; and a description of the acts or omissions by the respondent that is sufficient to inform the Assistant Secretary of the nature and date of the alleged noncompliance. A. Complaint Resoiution Within 10 days of timely filing of a compiaint, the Assistant Secretary shafl determine whether the alleged action constitutes noncompiiance with Section 3. If the Assistant Secretary so determines, the complaint shall be sent to the recipient for resolution. If the recipient believes the complaint lacks merit, the recipient must notify the Assistant Secretary in writing with supporting reasons within 30 days of receipt of the complaint. If the recipient determines there is merit, the recipient will have 60 days from receipt of the complaint to resolve the matter with the complainant. At the end of that 60 day period, the recipient must notify the Assistant Secretary in writing if resolution has been reached and the terms of the resoiution. If extensions are requested, a statement explaining the need for the extension must be included. lf the complaint is unable to be resolved within the 60 day period or extensions, the complaint shall be referred to the Assistant Secretary for disposition. B. Informal Resolution by Assistant Secretary Upon receipt of the recipient's written recommendation that there is no merit, the Assistant Secretary will review the complaint to determine whether it represents a valid atlegation of noncompliance with Section 3. Should the Assistant Secretary determine the allegations are not valid, the Assistant Secretary will dismiss the complaint without further action. Where the allegations present a valid incident of noncompliance with Section 3, the Assistant Secretary will, through informal methods, obtain voluntary resolution of . .... ._..... t e complaint. If voluntary resolution fails, the Assistant.:S:ecr:etary::�may impose �� -� = resolution on the recipient and complainant. That resolution may be in the form of sanction or resolution as set forth in the regulations governing the HUD program under which the covered assistance was provided. . ' + • � • The imposed resoiution will become effective and binding at the expiration of 15 days following notification to the recipient and the complainant. Any appeals shall be in writing to the Assistant Secretary and shall include the basis for appeal. Sanctions may take the form of debarment, suspension, and limited denial of participation in HUD programs.