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CITY OF EAST PALO ALTO
FIRST SOURCE AGREEMENT
CONSTRUCTION CONTRACTS
THIS AGREEMENT is entered into on the date stated below by and between the CITY OF EAST PALO ALTO, a municipal corporation (“City”), and MP 965 Weeks Street Associates, LP, a California limited partnership, (“Contractor”).
WHEREAS, the Contractor and the City have entered into a Disposition, Development, and Loan Agreement whereby the City has agreed to lease the property located at 965 Weeks Street (“Property”) to the Contractor and to provide a below market rate interest loan to the Contractor to facilitate the development of an affordable housing development on the Property (”Project”); WHEREAS, the City has adopted First Source Hiring requirements with respect to certain projects subsidized by the City or subject to a lease with the City codified at the East Palo Alto Municipal Code Chapter 5.11 which establishes goals that (i) a minimum of 20% of the total work hours for the construction project subsidized by the City be performed by East Palo Alto residents, (ii) a minimum of 20% of all new hires for the construction contract be East Palo Alto residents, of which 5% will be disadvantaged workers who are East Palo Alto residents, as those terms are defined in the Municipal Code;
WHEREAS, in accordance with the City’s First Source Hiring requirements, the Contractor is required to enter into this First Source Agreement (“FSA”) with the City; NOW, THEREFORE, the parties hereto mutually agree as follows:
1. Contractor will comply with the terms of Chapter 5.11 of the East Palo Alto Municipal Code, First Source Hiring Program (“Ordinance”), a copy of which is attached hereto and incorporated by reference, and shall require that all of Contractors subcontractors comply with the Ordinance, including but not limited to Contractor’s General Contractor for construction of the Project. Contractor shall incorporate into any contracts it enters into with the General Contractor or others performing work on the Property or the Project the terms of this Agreement and the Ordinance.
2. Liaison. Contractor shall designate a liaison for issues related to the Ordinance and this FSA. The liaison shall work with designated City staff to facilitate effective implementation of the Ordinance and this FSA.
3. First Source Hiring Process. Contractor shall take the following steps regarding hiring covered by the Ordinance:
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(a) Long-Range Planning. Contractor shall, prior to hiring covered by the Ordinance, and as soon as practicable, provide to the designated City staff or other entity designated by the City the approximate number and type of hires that it will make for employment, the basic qualifications necessary for each projected hire, the dates of expected hiring and any other information requested by the City regarding the hires. (b) Dual Notification Process. Where the Contractor or its subcontractor has entered into a signatory agreement with a local union and the associated craft, Contractor shall work with the local union and the City to fill those positions. The Contractor shall forward to the City a copy of all personnel requests made to the trade unions, specifying the residency of personnel requested. In the dual notification process, the Contractor shall utilize the "name call," "rehires," “transfers,” "sponsorship," and other available options in maximizing the participation of Richmond residents.
(c) Notification of job opportunities. Where the Contractor has not entered into a signatory agreement with a local union, then prior to hiring covered by the Ordinance, Contractor shall notify the designated City staff, by email, 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.
(d) Filling of job opportunities. Where the Contractor has not entered into a signatory agreement with a local union, then 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 Contractor shall notify the City in writing of such position, including a general description of the position and Contractor's minimum requirements for qualified applicants, and shall request the City to refer qualified applicants for such position to Contractor. The Contractor shall refrain from any general announcement or advertisement of the availability of such position, and shall refrain from hiring anyone other than an East Palo Alto resident for such position, for a period of forty eight (48) hours after notification to the City. This forty-eight (48) hour period shall be known as the "Advance Notice Period.”
(e) Job Site Applications. In the event that any persons seek employment with the Contractor at the job site, the Contractor shall have the person complete a Job Site Application consisting of name, address, telephone number, social security number and trade.
The Contractor will then submit this information to the City.
4. Quarterly Reports. Contractor shall, on a quarterly basis until the Certificate of Completion is issued for the Project, furnish certified payroll sheets to the City. Failure to provide the City with this information may result in delay in disbursement of loan funds or a finding that the Contractor is noncompliant with the terms of this Agreement and/or the 551\01\3548026.1
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Ordinance.
5. Quarterly Reports. Each Contractor shall 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 which were disadvantaged workers. Contractor may provide the requested information in a format proposed by Contractor unless the City provides a form for such information. Reports shall be filed with the City within thirty (30) days after the completion of each quarter. Reports may include a description of any difficulties the Contractor is having with obtaining qualified referrals through the Designated City staff.
6. Non-compliance Procedure. In the event the City believes the Contractor may not be in compliance with the requirements of this FSA, the following procedure will be followed:
(a) The City Manager or his or her designee shall cause to be delivered to the Contractor a written “Notice of Non-Compliance.” This Notice shall specify the matters which constitute the non-compliance; the specific action required to correct the non-compliance; and the time period during which such correction shall occur. In no event shall this time period be more than thirty (30) days after receipt of the Notice of Non-Compliance by the Contractor. If the Notice of NonCompliance is mailed, it will be deemed received five (5) days after the date of mailing. (b) If the Contractor disagrees with the Notice of Non-Compliance, the Contractor shall have the burden of proving compliance with the provisions of the Ordinance and shall submit any evidence and argument to the City Manager or designee to establish compliance no more than thirty (30) days after receipt of the Notice of Non-Compliance by the Contractor.
(c) In the event the City Manager or designee subsequently agrees that compliance has occurred, the City Manager or designee shall cause to be delivered promptly to the Contractor a written “Notice of Correction of Non-Compliance,” specifying the original non- compliance which has been corrected.
(d) In the event the City Manager or designee does not agree that compliance has occurred, the City Manager or designee shall promptly notify the Contractor by a written “Notice of Failure to Correct Non-Compliance,” describing the facts constituting the non-compliance. (e) After the issuance of a written Notice of Failure to Correct NonCompliance, the Contractor shall have the right to request a hearing before the City Council, or a mutually agreed upon arbitrator who shall make the final determination. The request for a hearing must be made within ten (10) working days after receipt of the Notice of Failure to Correct Non-Compliance. If the Notice of Failure to Correct Non-Compliance is mailed, it will be deemed received five (5) days after the date of mailing. The hearing shall be held no sooner than twenty (20) and no later than thirty (30) days after receipt by the City of the Request for 551\01\3548026.1
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Hearing, unless otherwise agreed to by the parties. At the hearing, the Contractor will be allowed to present any evidence and argument it believes proves compliance The City Council or neutral arbitrator shall issue their final determination no later than ten (10) business days after the hearing. The Contractor must exhaust this administrative remedy prior to commencing further legal action.
(f) In the event no Request for Hearing is timely made, the determination of failure to correct non-compliance shall be deemed to be final. (g) Should the Contractor fail to comply with the Notice of Non-Compliance as specified above, and a final determination of non-compliance is made, the City may exercise any of its powers as specified in §5.11.080 of the Ordinance.
Executed this day of , .
Contractor
By:
CITY OF EAST PALO ALTO
By:
Melvin E. Gaines, City Manager
Approved as to form:
_________________
John D. Lê,
City Attorney