ACTION REQUESTED:
TITLE
Communication from the City Manager and Corporation Counsel with a Request for the following:
A. APPROVE a RESOLUTION Pertaining to the Hiring of City Employees by City Contractors; and
B. ADOPT an ORDINANCE Amending CHAPTER 2 of the CODE of the City of Peoria Pertaining to OFFICERS’ AND EMPLOYEES’ ETHICS.
BODY
BACKGROUND: In 2005, the City Council was concerned with the hiring away of City employees by City contractors. At that time, on June 28, 2005, the City Council adopted a two-pronged approach. The first approach was to direct the City Manager to include the following clause in its contracts with vendors and service providers:
“Vendor agrees, as a condition of accepting this contract with the City of Peoria, that for a period of one year following completion of this contract, that it shall be prohibited from hiring, directly or indirectly, any City employee or official who was involved, directly or indirectly, in (1) the selection and/or recommendation to select the vendor for performance of this contract (2) coordination efforts of the vendor in the consummation or completion of this contract; (3) monitoring or determining the performance of the vendor. The vendor further acknowledges and agrees that upon the City’s determination that a violation of this provision has occurred, the penalty imposed, at the sole discretion of the City, may include one or more of the following: (1) cancellation of any other contract(s) between the City of Peoria and the vendor; (2) disqualification of the vendor from bidding or being awarded future contracts with the City of Peoria for a period of 2 years; and/or (2) payment of liquidated damages to the City of Peoria in the amount of $25,000.00.”
The above language is directed at the City’s contractors and vendors.
The Resolution is to provide notice to employers that those City employees affected by the reduction in force, those City employees taking the Early Retirement Incentive, and those City employees affected by furloughs may be hired by those employers.
The proposed Ordinance creates an exemption from penalty for any employee who is subject to separation due to reduction in force, furlough or an early retirement incentive. This is identical to an exemption created in 2018 when a reduction in force and furlough was necessary.
FINANCIAL IMPACT: No direct financial impact to the City.
NEIGHBORHOOD CONCERNS: None
IMPACT IF APPROVED: Businesses would be put on notice that they could hire City employees affected by the reduction in force or Early Retirement Incentive. Employees would not be subject to penalty if they went to work for a City contractor following their separation from the City.
IMPACT IF DENIED: Existence of the contract clause may inhibit firms doing business with the City and from considering the City employees for employment. Employees would need to go through the appeals process in order to obtain an exemption before they could go to work for a City contractor without being subject to potential penalty.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2022 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Not applicable.
2. Choose an item.
3. Choose an item.
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Choose an item.
3. Choose an item.
DEPARTMENT: Legal