PROGRAM FOR CONTRACTORS SUBCONTRACTORS DEVELOPERS DEMYSTIFYING MILWAUKEES RESIDENT

PROGRAM FOR CONTRACTORS, SUBCONTRACTORS & DEVELOPERS DEMYSTIFYING MILWAUKEE’S RESIDENT PREFERENCE PROGRAM (RPP) FEBRUARY 17, 2017 RPP 101 Carla Y. Cross President & CEO 1

US News & World Report: Milwaukee Up and Coming City to Live 2

PRESENTATION Why RPP? RPP Certification RPP Requirements RPP Incentives RPP Reporting (LCPtracker) 3

WHY RPP? Residents Preference Program Reduce unemployed and/or underemployed City of Milwaukee residents Designed to promote the employment of city residents Increase per capital income of the City of Milwaukee 4

HISTORY OF RPP 1991 City of Milwaukee establishes RPP 1997 City of Milwaukee expands hours 2009 2016 2017 14% of hours worked on public work contracts were RPP workers 14% - 25% / 21% of total project hours Milwaukee Opportunities for Restoring Employment (M. O. R. E) Ordinance Opened the program to private development projects receiving more than $1 million of direct financial assistance from the City of Milwaukee 25% to 40% Creation of Workforce Organization Reform Committee (WORC) Improves the procedures and practice of CWD and economic participation initiatives Recommendations by WORC have been implemented to support Special Impact Area Zip Codes 5

RPP MANAGEMENT City Departments The following City departments are responsible for administering RPP: Department Contract Types Department of Public Works Public works projects Office of Small Business Development / Department of City Development Private development projects Department of City Development Department of Neighborhood Services Environmental Collaboration Office Housing Infrastructure Program and Tenant Transition to Ownership Program Deconstruction and DPW Demolition Support (Cityowned property) Me 2 and PACE projects Legislation Milwaukee Code of Ordinances (MCO) CH 309 -41 MCO CH 355 applies to projects with >$1 M City assistance) MCO CH 7 -22 (5), CH 309 -41 MCO CH 309 -41 Community Workforce Agreement (Common Council File Number: 131139) 6

RPP AFFIDAVIT 7

RPP CERTIFICATION CRITERIA City of Milwaukee Resident 8

RPP CERTIFICATION CRITERIA Unemployed Worked less than 1, 200 hours in the preceding 12 month Not worked in the preceding 15 days OR 9

RPP CERTIFICATION CRITERIA Underemployed Meet the Income Eligibility Guidelines 10

RPP CERTIFICATION CRITERIA Income Eligibility Guidelines July 1, 2016 to June 30, 2017 Eligibility determination is based on household size and income. Total income must be at or below the amounts in this table. Household Size Yearly Monthly 1 2 3 4 5 6 7 8 21, 978 29, 637 37, 296 44, 955 52, 614 60, 273 67, 951 75, 647 1, 832 2, 470 3, 108 3, 747 4, 385 5, 023 5, 663 6, 304 Twice per month 916 1, 235 1, 554 1, 874 2, 193 2, 512 2, 832 3, 152 For Each Additional Household Member Add 7, 696 642 321 Every 2 Weekly weeks 846 1, 140 1, 435 1, 730 2, 024 2, 319 2, 614 2, 910 423 570 718 865 1, 012 1, 160 1, 307 1, 455 296 148 Source: Wisconsin Department of Public Instruction School Nutrition Programs 11

RPP CERTIFYING AGENCIES DPW – Contracts Administration 841 N. Broadway, Milwaukee, WI (414) 286 -3309 3841 W. Wisconsin Avenue Milwaukee, WI 53208 http: //www. wrtp. org/ (414) 342 -9787 Riverworks 526 E. Concordia Ave. Milwaukee, WI 53212 http: //www. riverworksmke. org/ (414) 906 -9650 12

SUBMITTING RPP AFFIDAVIT Fax or Email RPP Affidavit and supporting documentation to DPW Celeste Jantz Nichole Smith Phone: 414 286 3309 Phone: 414 286 3204 Fax: 414 286 8110 Email: cjantz@milwaukee. gov Email: nsmith@milwaukee. gov 13

RPP REQUIREMENTS 40% RPP hours 25% of required RPP hours must be worked by residents of the Special Impact Area zip codes 25% of Apprentice hours must be worked by RPP certified Apprentices 40% of Apprentice hours must be worked by RPP certified Apprentices residing in Special Impact Area zip codes 14

SPECIAL IMPACT ZIP CODES 53204 53205 53210 53212 53215 53206 53218 53208 53233 15

EXAMPLE – REQUIRED RPP HOURS A construction contract with 1, 000 total work hours and 100 Apprentice hours 400 RPP Hours 100 RPP Hours from SIA employees 25 RPP certified Apprentice hours 10 RPP/SIA Apprentice hours 16

RPP INCENTIVES – SPECIAL IMPACT AREA Any hours worked by SIA/RPP employees greater than the required hours will be credited 1. 5 hours for each extra hour worked 17

RPP INCENTIVES – SPECIAL IMPACT AREA Special Impact Area Incentive Example A contract required 40 SIA/RPP hours. The contractor has 80 SIA/RPP hours. The SIA/RPP Incentive hours = 20 80 SIA/RPP Hours -40 SIA/RPP Hours Required 40 extra SIA/RPP Hours x. 5 = 20 SIA/RPP Hours Total SIA/RPP Hours = 100 (80 Worked + 20 Incentive) 18

RPP INCENTIVES – RPP CREDIT RPP-certified workers working on a concurrent non-City project within the State of Wisconsin Up to one-third of the required RPP hours on any given City contract can be comprised of RPP credit hours 19

REPORTING RPP HOURS – LCP TRACKER Each contractor must use to report each Wisconsin worker hours (non-Wisconsin hours are excluded). Enter employee identification, labor classification, total hours worked on the project, and wage and benefits rates paid Upload each RPP worker’s RPP Affidavit LCPtracker can be accessed online at https: //www. lcptracker. net. Each contractor and subcontractor will be given a User ID and password to access the LCPtracker system. 20

REPORTING RPP HOURS – LCPTRACKER Guides Contractor Entry Guide Employee Set-Up Guide Payroll Entry Guide 21

LCPTRACKER PAYROLL INTERFACES 22

PENALTIES Minimum fine of $2, 000. 00 for knowingly providing fraudulent RPP data Contracts let/executed agreements with RPP requirements require compliance – Failure to comply may result in held payments or penalties 23

SUMMARY Proactively forecast participation RPP Certify all eligible employees Keep record of RPP worker hours on non -city project Use RPP Incentives as competitive advantage 24

RPP SEMINAR Q&A 25

Carla Y. Cross President & CEO 414 449 4920 x 107 ccross@cross-management. com 26