MITA has been consistently opposed to cities applying local hiring preferences and will continue to strongly oppose those types of local ordinances. The following is an update on recent local preference issues in Detroit and Lansing.
City of Detroit
On November 1, 2007, executive order 2007-1, “Utilization of Detroit Residents on Publicly-Funded Construction Projects” will take effect. This executive order directs the city departments and agencies to implement specific residency requirements on all construction projects funded, in whole or in part, by the city. To the extent permitted by law, the executive order could also apply to projects funded with state or federal funds. Click here to view and print a copy of the ordinance.
Per the executive order, all city of Detroit construction project contracts shall provide that at least 51% of the workforce must be bona-fide Detroit residents. In addition, Detroit residents shall perform 51% of the hours worked on the project.
Failure to meet the Detroit resident workforce requirement, including project hours, will result in monthly financial penalties. In addition, failure to meet the requirements of the executive order will constitute a breach of contract and may result in immediate termination of the contract with the contractor barred from doing business with the city of Detroit for one year.
City of Lansing
The City of Lansing is currently considering an ordinance that would guarantee a preference for Lansing-based contractors over out-of-town contractors and establish a local prevailing wage for city-assisted construction projects. It is anticipated that the proposed ordinance language will be available for its official introduction at the October 15th City council meeting.
A hearing for this proposal is tentatively set for October 29th.
This ordinance would apply whenever the city offers financial assistance such as tax credits, deferrals and abatements for improvement projects worth more than $50,000.
MITA will keep you posted on further developments.