NEW ORLEANS – Today, Mayor Mitch Landrieu provided an end of the year recap on accomplishments achieved as part of the Mayor’s Economic Opportunity Strategy to connect disadvantaged job seekers and businesses to new opportunities.
“This year, we continued our commitment to recruit, train and connect the hardest to employ to real jobs and match local businesses to strategic opportunities,” said Mayor Mitch Landrieu. “With policy improvements and implementation, we have made significant enhancements in creating pathways to prosperity and look forward to 2016 to be even better. As we continue to make New Orleans the city we’ve always dreamed of, we cannot and will not leave anyone behind, and we will continue our aggressive efforts to close the income gap and create equity for all New Orleanians.”
Ashleigh Gardere, Senior Advisor to the Mayor for Economic Opportunity and Executive Director of the Network for Economic Opportunity, said, “This year we have made great strides in creating pathways to prosperity so that all residents can participate in our city’s growth. In 2016, we look forward to building on our success and working with all of our committed partners who stand shoulder-to-shoulder with us in this effort. I am proud of the work we have done – and continue to do – to improve the quality of life for all New Orleanians.”
Successes Achieved in 2015
Living Wage Ordinance Requires City Contractors Pay Employees a Minimum $10.55 per hour
Mayor Mitch Landrieu signed into law an ordinance requiring City contractors and recipients of grants be paid a “living wage” of $10.55 per hour and provide a minimum of seven paid sick days. On Aug. 6, 2015, the New Orleans City Council unanimously adopted Ordinance Calendar No. 30,550, the “Living Wage Ordinance,” authored by District D Councilmember Jared Brossett. City officials said the higher wages will lead to increased levels of business investment, better employee training, higher worker productivity, and lower employee absenteeism and turnover.
This ordinance applies to contractors with $25,000 or more in annual City contracts as well as recipients of City financial assistance of $100,000 or more over any 12-month period.
On January 1 of each year, the "Living Wage" will be adjusted in accordance with the consumer price index, but will never be adjusted downward. Employers that pay their lowest paid employee 30 percent above the required living wage will be exempt from the sick leave requirement.
The ordinance will go into effect January 1, 2016.
Instituted ‘Hire NOLA’ Policy to link employment opportunities created by City contracts to local and disadvantaged workers
The New Orleans City Council passed Mayor Landrieu’s proposed ‘HireNOLA’ policy that requires certain contractors to prioritize Orleans Parish residents when hiring and to demonstrate good-faith efforts to hire local and disadvantaged workers.
The overall goal of the HireNOLA policy is for at least 50 percent of all work hours on City projects to be completed by local workers, of which 30 percent are to be completed by disadvantaged local workers. Given the current state of the local workforce, the local hiring goals set in 2015 will increase annually by five percent with full implementation in 2020.
HireNOLA will require contractors to use the City as its first source for recruitment, referrals and placement of new hires on applicable contracts. It will also require contractors working on applicable projects to demonstrate good faith efforts to hire local and disadvantaged workers.
Applicable contracts include any contract to which the City is a party for construction, alteration, or demolition of public buildings or public works of the City of New Orleans in excess of $150,000, and any Cooperative Endeavor Agreement to which the City is a party and through which the City provides tax incentives for economic development projects in excess of $150,000.
Phased implementation of the ordinance will begin in January 2016.
Mayor Landrieu and Wells Fargo Hosted Five STRIVE NOLA Graduations
Mayor Mitch Landrieu along with Wells Fargo hosted five STRIVE New Orleans (STRIVE NOLA) graduation ceremonies. Launched in March 2015, STRIVE NOLA seeks to connect disadvantaged jobseekers to employment opportunities through anchor institutions by providing workforce case management, foundational skills training and supportive services. To date, the program has prepared 105 men and women to confidently return to the workforce.
STRIVE NOLA prepares and connects local job seekers; specifically African American males to career pathways through local anchor institutions. During the four week job readiness training program, participants arrive to work daily dressed professionally from 9 am until 4 pm. The STRIVE employment model ensures that every client is not only ready to find a job, but also ready to keep it through five components: CORE Attitudinal and Job Readiness, Skills Training, Workforce Case Management, Job Placement, and Job Retention and Ongoing Follow-up.
Established New Rules Governing the City’s DBE Policy
The New Orleans City Council unanimously passed Mayor Landrieu’s proposed DBE rules strengthening the City’s policy to ensure participation of disadvantaged business enterprises (DBE) in City contracts.
The new rules reform the DBE program bringing it in line with best practices from around the country. It is the product of collaborative work with stakeholders from the DBE and prime contractor community. Revisions include:
• Restrictions on DBE subcontracting and modification of DBE firms,
• Strengthened Good Faith Effort requirements throughout the life of the contract, and
• Establishes penalties for non-compliance.
Launched ‘Build NOLA’ Training Program for Small and Disadvantaged Businesses
Mayor Mitch Landrieu launched "BuildNOLA", a training program to prepare local small and disadvantaged businesses to more effectively compete for public and private contracts. The program expands the city’s pool of competitive and qualified bidders and maximize contracting opportunities for Disadvantaged Business Enterprises (DBE).
In 2015, the first cohort completed the program, preparing 23 local small and disadvantaged businesses to more effectively compete for public and private contracts.
BuildNOLA is a project-specific capacity building program that prepares local firms and DBE’s to:
• Perform a detailed estimate for a specific project;
• Prepare relevant forms for bidding work based on the estimate;
• Develop a site-specific safety plan appropriate to the scope of work their company would undertake; and,
• Create a set of comprehensive contract documents.
The BuildNOLA program consists of two key elements including a training series and one-on-one technical assistance.
The training series is free to all participants. Training consists of a six-week curriculum that provides contractors and/or professional services firms with the necessary tools to increase their organizational and competitive capacity, including:
• Overview of the featured project;
• Introduction to the project owners and key project managers;
• Guidance on the bid process; and,
• Mock bidding and/or proposal evaluation exercises.
There are separate tracks for construction projects and professional services. All trainings are hosted at Delgado Community College’s Small Business Center.
Looking Forward to 2016
In early 2016:
• The City will continue to strengthen monitoring and enforcement of Disadvantaged Business Enterprise (DBE) Policy and introduce a new certification process in January.
• The City Council, at the Mayor’s request, has committed $500,000 to conduct a legally defensible Disparity Study in 2016. The City has hosted two community meetings to gain feedback on considerations of the study. The anticipated length of the study is 12 months.
• The City will host trainings for local contractors and city departments focusing on Hire NOLA and new DBE program rules and monitoring systems.
• The Economic Opportunity Strategy will continue collaboration with some of the region’s largest employers and anchor institutions of the healthcare, infrastructure and information technology industries. In 2016, the collaboration will expand to the hospitality and tourism industry.
• Through the coordination of 5 Opportunity Centers – STRIVE NOLA, Urban League of Greater New Orleans, Total Community Action, Goodwill Industries and Job 1 – the City will continue to connect the hardest to employ to career pathways. In 2016, the STRIVE NOLA program will continue with 6 scheduled cohorts.
