Other/Miscellaneous Request Template (Appointments; ROW; Code Changes; Zoning Action, etc.)
Date Submitted: 4-10-2023
Requesting Agency: DEDO
Division:
Subject Matter Expert Name: Derrick Watson
Email Address: derrick.watson@denvergov.org
Phone Number:
Item Title & Description:
(Do not delete the following instructions)
These appear on the Council meeting agenda. Initially, the requesting agency will enter a 2-3 sentence description. Upon bill filling, the City Attorney’s Office should enter the title above the description (the title should be in bold font).
Both the title and description must be entered between the red “title” and “body” below. Do not at any time delete the red “title” or “body” markers from this template.
title
A bill for an ordinance enacting Article XI of Chapter 28 to create the Denver Construction Careers Program.
Amends Chapter 28 of the Denver Revised Municipal Code by adding a new Article XI Workforce Development Requirements in City Construction to create the Denver Construction Careers Program to address construction labor shortages through apprenticeship training requirements and employment opportunities for people living in economically disadvantaged areas or experiencing economic disadvantage. The Committee approved filing this item at its meeting on 4-12-2023.
body
Affected Council District(s) or citywide? Citywide
Executive Summary with Rationale and Impact:
Detailed description of the item and why we are doing it. This can be a separate attachment.
EXECUTIVE SUMMARY
After a three-year pilot phase and many months of stakeholder outreach, Denver Economic Development & Opportunity (DEDO) is excited to present the proposed ordinance for the Denver Construction Careers Program (DCCP). The purpose of the DCCP is to develop and enforce programs that expand the local skilled construction workforce. This expansion takes several forms, including:
• encouraging Denver residents, including women and minorities, to consider the span of opportunities in the construction industry,
• promoting the creation and availability of registered apprenticeships as well as other approved training programs
• monitoring the rate at which registered apprentices are working on public construction contracts, and
• requiring contractors on these contracts to hire workers living in priority areas of economic need or who otherwise meet defined target criteria.
Dual challenges facing Denver make this program necessary: a troubling shortage of current and future construction labor, which most definitely places the city’s ambitious investments in infrastructure at risk, and the disparity of economic opportunity that has prevented some residents from benefiting from Denver’s overall economic growth. Broadly, the primary factors defining the DCCP’s establishment, operations, and goals include:
• The existence and availability of approved apprenticeship programs in the metro area, particularly with regard to industry classification, which varies widely; and pre-apprenticeship programs that DCCP has approved;
• How the ordinance accounts for differences in horizontal versus vertical construction activities;
• Encouraging the utilization of first-year apprentices with special consideration of graduates of DCCP approved pre-apprentice programs;
• Construction contracts that fall under the purview of the DCCP, either by size or by nature of the work to be performed, or through the city’s determination;
• How, either by graduating from a DCCP-approved pre-apprenticeship program, through residing in a priority neighborhood of economic need, or having veteran status, a hired worker can be counted toward meeting DCCP compliance criteria in one or more targeted categories;
• The measurable rates by which a contractor hires target category workers in the contract’s first, second, and third and subsequent years; and
• Other compliance guidelines set forth in the DCCP ordinance against which contractors’ participation will be measured.
Requirements and measurement
Approved apprenticeship or pre-apprenticeship programs. An approved or registered construction-related apprenticeship program must meet the requirements of the Colorado State Apprenticeship Agency or the U.S. Department of Labor. Because the need for approved apprenticeships is so great, DCCP has helped fund and establish pre-apprenticeship programs locally and also works with employers to explore the benefits of establishing an approved program.
Horizontal versus vertical construction. Horizontal construction refers to demolition, excavation, site preparation, utility/sewer, and wastewater work; road, curb and gutter, sidewalk, bridge and tunnel construction; runway or taxiway construction; drainage and flood control work; and landscaping. Horizontal work on public contracts larger than $10M are generally covered by the DCCP. However, the subset of horizontal work that is paving--asphalt or concrete on streets, alleys, parking lots, curbs, curb cuts, curb ramps, driveways, etc., and thus includes no vertical work--is not covered by the DCCP. Vertical construction refers to any building, structure, or improvement that is predominantly vertical, including above-ground improvements and remodeling; such work on public contracts larger than $10M are covered by the DCCP.
First-year and experienced apprentices.
For vertical construction:
• 15% of the total construction hours must be performed by registered apprentices
• 3.75% of the total construction hours must be performed by first-year registered apprentices
• Hours worked will count in all applicable categories
• 3.75% of the total construction hours must be performed by registered apprentices who are in target categories-either by residing in a priority area of economic need, by being in a DCCP-approved pre-apprenticeship
program, or as a veteran
For horizontal construction,
• 3% of the total construction hours must be performed by registered apprentices in the first contract year
• The second contract year requirement is 4%
• The third and subsequent contract year requirement is 5%
Contracts under the purview of the DCCP. Public construction contracts of more than $10M, both vertical and the horizontal work described above, fall under the DCCP purview. Contracts for emergency work and paving contracts (that include no vertical work) are excluded from the DCCP.
Workers meeting DCCP compliance criteria. Several status categories dictate whether and how a particular worker can be counted by a contractor toward meeting DCCP requirements. One or more target categories may apply simultaneously to an individual, and they include:
• whether the worker resides in a priority area of economic need as defined by the DCCP
• whether the worker has graduated from a DCCP-approved pre-apprenticeship program
• whether the worker is participating in a registered apprenticeship program
• whether the worker is in his/her first year of the apprenticeship, or a subsequent year
• whether the worker has served in any branch of the U.S. Armed Forces and can claim veteran status
Targeted hire goals. In the initial year of a contract, a minimum of 15% of the total construction hours must be performed by workers from the target categories. In the second year, the requirement is 17%, and in the third and subsequent years, the requirement is 20%. DCCP requires that this data be reflected in a software platform (LCPtracker is the platform currently being used by DCCP). It is possible that goals for apprenticeship use or targeted hire can be adjusted by DEDO if a particular contract has disproportionately larger levels of work in trades with fewer registered apprenticeships or insufficient access to individuals from target categories. The lack of registered apprenticeships in our area in certain trades is also being addressed by DCCP with their outreach and partnership work, including the funding of pre-apprentice programs.
Measuring contractors’ participation. In addition to the guidelines noted above, the prime contractor on a contract under the DCCP is required to
• submit for approval a workforce development plan outlining how the
DCCP requirements will be met,
• establish a point person for DCCP reporting and communications,
• participate in outreach and recruitment events, and
• gather and report data demonstrating compliance on apprentice
utilization and target hire goals.
Address/Location (if applicable):
Legal Description (if applicable):
Denver Revised Municipal Code (D.R.M.C.) Citation (if applicable): Chapter 28 of the Denver Revised Municipal Code
Draft Bill Attached?