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Consideration of request by Finance Director for approval of a six-year intergovernmental agreement with the City of Milwaukee for utilization of their workforce tracking software for economic development inclusion projects
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Submitted by:
John Ruggini
Department:
Finance
A. Issue
The Procurement Equity Policy requires Tax Increment Financing projects include required Distressed Zip Code hiring inclusion goals. Specialized software is necessary to track the workforce information necessary to determine whether developers have met this goal. The City has previously used a private cloud-based software provider. However, the City of Milwaukee has developed its own software program and is willing to make it available to the City of Wauwatosa for approximately a 25-50% savings.
B. Background/Options
Early in 2022, the City of Wauwatosa instituted and managed an Equity and Inclusion initiative for commercial developers seeking Tax Incremental Financing (TIF)to supplement their development projects. The inclusion program includes two major initiatives:
A. Developers seeking TIF support for commercial development projects are to make a Good Faith Effort (GFE) to utilize Disadvantaged businesses as follows.
(1) 25% of Professional Service expenditures
(2) 25% of Construction Goods and Service expenditures
B. Additionally, the program requires best efforts to have 25% of onsite labor hours for any
newly hired workforce to come from residents living in the 12 most Distressed Milwaukee County Zip codes.
The workforce development goal requires specialize software so that contractor and sub-contractor can upload payroll information that can be then verified. For the three projects completed to date, we have used a private cloud-based software solution and the average cost has been $10,200. Staff felt this was excessive given this made up 10-15% of the total project cost and in comparison, to other cloud-based solutions the City uses for other purposes....
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