Chapter 11.25
LOCAL EMPLOYMENT PREFERENCE PROGRAM

Sections:

11.25.010    Declaration of policy and purpose.

11.25.020    Local employment preference program generally.

11.25.030    Definition – Resident of the Ketchikan Gateway Borough.

11.25.040    Definition – Manager.

11.25.050    Local employment preference standards.

11.25.060    Reporting procedures and requirements.

11.25.070    Computation of bonus payment.

11.25.080    Maintenance and inspection of records.

11.25.090    Posting.

11.25.100    Rules and regulations.

11.25.110    Incorporation in contracts.

11.25.120    Nonapplicability and limitations of chapter.

11.25.010 Declaration of policy and purpose.

It is the policy and purpose of the assembly of the Ketchikan Gateway Borough to promote and preserve the economic and social well-being of the residents of Ketchikan Gateway Borough through the enactment of a local resident employment preference program which establishes an incentive for maximizing the employment of residents of the Ketchikan Gateway Borough in the performance of certain contracts for public construction by providing for a bonus payment to contractors that comply with the local resident employment preference standards, procedures, reporting and other requirements set forth in this chapter. [Ord. No. 588, §1, 1-5-87. Code 1974 §41.35.005.]

11.25.020 Local employment preference program generally.

(a)    Applicability. This chapter shall apply to contracts for public construction, as defined in AS 36.95.010(3), awarded by the borough:

(1)    That have an estimated contract value, determined as of the time of advertisement, of four hundred thousand dollars ($400,000) or more;

(2)    For which competitive bidding or quotations are required pursuant to Chapter 11.20 KGBC;

(3)    To which the borough is a signatory; and

(4)    Which are funded at least fifty (50) percent by borough funds.

Notwithstanding any other provisions herein, the assembly may, at its discretion, prior to advertising for bids, exempt any contract from application of the provisions of this chapter or determine that the provisions of this chapter shall apply to a contract for public construction with an estimated contract value of less than four hundred thousand dollars ($400,000) or to a contract which does not otherwise meet the requirements of subsection (a)(4) of this section.

(b)    Bonus Payment. A contractor for a contract to which this chapter is applicable shall, upon compliance with all of the local resident employment preference standards, procedures, reporting and other requirements set forth in this chapter, and upon approval of payment thereof by the manager, be paid a bonus payment for employment of residents of the Ketchikan Gateway Borough as provided for herein. A contractor may pay all or any part of a bonus payment received to a subcontractor. [Ord. No. 588, §1, 1-5-87. Code 1974 §41.35.010.]

11.25.030 Definition – Resident of the Ketchikan Gateway Borough.

For purposes of this chapter a “resident of the Ketchikan Gateway Borough” shall mean a person who:

(a)    Maintains a domicile within the Ketchikan Gateway Borough; domicile is a person’s true, fixed, established, principal and permanent home;

(b)    Has established bona fide residency within the Ketchikan Gateway Borough sufficient to qualify for voting, whether or not such person is registered to vote in borough elections;

(c)    Has no claim of residency elsewhere; and

(d)    Intends to remain in the Ketchikan Gateway Borough indefinitely. [Ord. No. 588, §1, 1-5-87. Code 1974 §41.35.020.]

11.25.040 Definition – Manager.

For purposes of this chapter, the term “manager” shall mean the borough manager of the Ketchikan Gateway Borough, or designee. [Ord. No. 588, §1, 1-5-87. Code 1974 §41.35.030.]

11.25.050 Local employment preference standards.

(a)    Generally. A contractor for a contract to which this chapter applies shall be entitled to a bonus payment as provided for in this chapter if:

(1)    85 percent or more of the total nonexempt worker hours expended by employees of the contractor, and by the employees of all of the contractor’s subcontractors, in the categories of trades that are set forth in the most current edition of the Pamphlet No. 600 entitled “Laborers’ and Mechanics’ Minimum Rates of Pay” published by the State of Alaska Department of Labor, in performing the contract, were expended by persons who were, both at the time of their initial hire for the project and at the time they performed the work on the project, bona fide residents of the Ketchikan Gateway Borough as defined in KGBC 11.25.030;

(2)    The contractor has fully complied with all of the reporting and other requirements and procedures set forth in this chapter; and

(3)    The bonus is approved for payment by the manager.

(b)    Exemption for Unavailability of Resident Workers. In the event there is no available and qualified resident of the Ketchikan Gateway Borough for a specific position, vacancy or job classification, sought to be filled by the contractor, or by a subcontractor of the contractor, the contractor may request an exemption for the worker hours performed by a person who fills such position, vacancy or job classification in computing the percentage of total worker hours performed by residents of the Ketchikan Gateway Borough for purposes of determining qualification of the bonus payment. A contractor seeking such an exemption shall file a written application therefor with the manager on a form provided by the manager not later than 10 days after the position, vacancy or job classification for which the exemption is sought is filled by a nonresident of the Ketchikan Gateway Borough. Such application shall include a detailed written statement under oath describing the efforts and actions taken by the contractor, or the contractor’s subcontractor, in attempting to hire a resident of the Ketchikan Gateway Borough for the position, vacancy or job classification for which the exemption is sought, and such further and additional information as may be requested by the manager.

(1)    “Qualified” shall mean having the job related education, training, experience and licensing necessary to demonstrate the individual’s ability and willingness to satisfy the terms and conditions which are usual for the industry or profession with respect to the position, vacancy or job classification being filled.

(2)    For purposes of this chapter it shall be conclusively presumed that there are no qualified and available residents of the Ketchikan Gateway Borough for a given position, vacancy or job classification if the contractor demonstrates to the satisfaction of the manager that:

a.    None are listed in any state or private employment or placement agency within the Ketchikan Gateway Borough;

b.    There are no responses from, or referrals by, any state or private employment agency or other employment organization within 15 work days after the date of written inquiry; and

c.    No applications are received within 15 days after publication of a help wanted advertisement.

Provided, however, in the event the required 15-day publication has previously been given regarding employment for performance of the work by that particular trade or speciality as required in subsection (b)(2)(c) of this section, subsequent periodic job vacancies in such trades or specialties which occur or arise because of employee dismissals, or other job terminations, may be filled without giving a further and additional 15-day publication and the referral response time shall be 72 hours. [Ord. No. 1827, §12, 4-3-17; Ord. No. 588, §1, 1-5-87. Code 1974 §41.35.040.]

11.25.060 Reporting procedures and requirements.

(a)    Notice of Intent to Apply for Bonus Payment. A contractor who intends to apply for a bonus payment shall submit with the contractor’s bid proposal, on a form required by the borough, a notice of the contractor’s intent to apply for the bonus payment. In the event the contractor fails to timely submit such written notice of intent to apply for the bonus payment as required in this section, the contractor shall be deemed to have waived any right to apply for such bonus payment and shall not be eligible to thereafter apply for or to receive a bonus payment.

(b)    Information Required to Be Submitted Weekly. A contractor seeking the bonus payment shall, not later than the close of borough business on Friday of each week, submit to the manager, or designee, all of the following:

(1)    A copy of the contractor’s, and all of the contractor’s subcontractors’, weekly certified payroll report for the preceding week required to be filed with the Alaska Department of Labor;

(2)    A sworn statement signed by each employee of the contractor, and by each employee of each of the contractor’s subcontractors, who performed any work on the project during the preceding week, declaring the employee’s residency status and the employee’s date of initial hire for the project; provided, however, a sworn statement by an employee shall not be required to be filed more than once unless the residence of the employee changes, in which event a new employee sworn statement shall be filed not later than 10 days after the date of the change of residency. The sworn statements shall be on a form provided by the manager and shall contain such information, and be accompanied by such documentation and verification, as may be required by the manager; and

(3)    Such further affidavits and other supporting documentation and information as deemed necessary by the manager to verify an employee’s residency status.

(c)    Information Required to Be Submitted Monthly. A contractor seeking the bonus payment shall, on or before the tenth day of each calendar month, prepare and file with the manager on a form provided by the manager, a monthly resident hire compliance report for the preceding calendar month setting forth such information and accompanied by such documentation as may be required by the manager.

(d)    Certification of Compliance. A contractor seeking the resident hire bonus payment shall, at the time of filing a request for final payment, submit a sworn statement certifying full compliance with the bonus payment entitlement provisions and requirements of this chapter by the contractor, and by all of the contractor’s subcontractors. Such statement shall be on a form provided by the manager and shall contain such information, and be accompanied by such documentation, as may be required by the manager. The manager may require submittal of further and additional affidavits or other supporting documentation and information as deemed necessary to verify full compliance with all of the provisions and requirements of this chapter and to determine the eligibility and amount of the bonus payment due, if any.

(e)    Information from Subcontractors. It shall be the responsibility of the contractor to assure compliance by its subcontractors with all of the provisions of this chapter and to obtain from such subcontractors, and their employees, all of the reports, information, sworn statements, affidavits, documentation and other verification as may be required to be submitted by the contractor, and failure by the contractor to do so shall constitute sufficient grounds to determine that the contractor is ineligible to receive a bonus payment and to deny payment thereof.

(f)    Failure to Submit Information. Failure of the contractor to submit any of the required reports, information, sworn statements, affidavits, documentation, or other verification, or the failure to submit such information in a timely manner, shall constitute sufficient grounds to determine that the contractor is ineligible to receive a bonus payment and to deny payment thereof. [Ord. No. 588, §1, 1-5-87. Code 1974 §41.35.050.]

11.25.070 Computation of bonus payment.

In the event the contractor qualifies for the resident employment bonus payment provided for in this chapter, the amount of such payment shall be computed as follows:

The total number of worker hours that were expended on the project under the contract by employees of the contractor, and by employees of subcontractors of the contractor, in the categories of trades set forth in the most current edition of Pamphlet No. 600, entitled “Laborers’ and Mechanics’ Minimum Rates of Pay,” published by the State of Alaska Department of Labor, who, both at the time of their initial hire for the project and at the time they performed the work, were residents of the Ketchikan Gateway Borough, as defined in KGBC 11.25.030, shall be multiplied by the applicable bonus rate according to the following schedule, and the result thereof is the amount of the bonus payment:

If Percentage of Nonexempt Worker Hours Expended on the Project by Local Residents (KGBC 11.25.030) Is:

Applicable Bonus Rate Is:

85, but less than 87

$0.20

87, but less than 89

$0.30

89, but less than 91

$0.45

91, but less than 93

$0.60

93, but less than 95

$0.75

95 or more

$0.90

Provided however, in no event shall the total amount of a bonus payable as to any contract exceed the maximum of fifty thousand dollars ($50,000). [Ord. No. 588, §1, 1-5-87. Code 1974 §41.35.060.]

11.25.080 Maintenance and inspection of records.

A contractor to whom a bonus payment is paid, or is to be paid, shall obtain and cause to be prepared and shall maintain, for a period of three (3) years after completion of the contract, such information and documentation as to the residency status of each employee of the contractor, and as to each employee of any subcontractor of the contractor, that performs any work under the contract, in such manner, and in such form, as is deemed necessary or appropriate by the manager. The manager shall have the right to review, audit, inspect and copy all such information and documentation at any time during normal business hours for the purpose of verifying, determining and auditing whether the contractor, and its subcontractors, fully complied with all of the resident employment preference requirements and provisions set forth in this chapter, and to verify and compute the amount of bonus payment, if any, to be paid to the contractor. Failure to prepare, obtain and maintain such employee residency information, or failure to allow inspection and copying of such information, shall constitute sufficient grounds to determine that the contractor is ineligible to receive a bonus payment and to deny payment thereof. In the event a bonus payment is made, and it is later determined that the amount thereof was excessive, or that the contractor was not entitled to such payment, the contractor shall repay the entire amount thereof, plus interest thereon at the rate of ten and one-half (10.5) percent per annum from the time of payment by the borough until repaid. [Ord. No. 588, §1, 1-5-87. Code 1974 §41.35.070.]

11.25.090 Posting.

A contractor who intends to apply for a bonus payment shall post a copy of this chapter in a public and easily accessible place at or near the job site during the entire term of performance of the contract, and failure to do so may result in a determination that the contractor is ineligible to receive the bonus payment and to deny payment thereof. [Ord. No. 588, §1, 1-5-87. Code 1974 §41.35.080.]

11.25.100 Rules and regulations.

The manager may formulate such rules and regulations as are reasonably necessary to effectuate and implement the provisions of this chapter including, but not limited to, providing for the time for filing, and contents of reports, and other documents to be made and filed by contractors and their subcontractors, and by their employees, and upon approval and adoption thereof by the assembly by resolution, such rules and regulations shall be filed and maintained in the office of the borough clerk and shall be available for public inspection and copying. [Ord. No. 588, §1, 1-5-87. Code 1974 §41.35.090.]

11.25.110 Incorporation in contracts.

The provisions of this chapter and any rules and regulations adopted pursuant thereto shall be binding on each contractor that makes application for a bonus payment, and shall be deemed to be incorporated by reference into and to be a part of every contract for public construction to which this chapter is applicable. [Ord. No. 588, §1, 1-5-87. Code 1974 §41.35.100.]

11.25.120 Nonapplicability and limitations of chapter.

The provisions of this chapter shall not apply to any contract for public construction involving state or federal funds where the terms of the grant or funding source would prohibit such a bonus payment. Nothing herein provided shall be construed to be a limitation upon any equal employment opportunity or affirmative action requirements of any contract for public construction. [Ord. No. 588, §1, 1-5-87. Code 1974 §41.35.110.]