HomeMy WebLinkAbout20080804 - VIII-C-1VIII-C-1
MEMORANDUM
TO: Honorable Mayor and City Councilmembers
FROM: Dave Osberg, City Administrator
DATE: July 31, 2008
SUBJECT: Resolution-Establishing a Prevailing Wage Policy
RECOMMENDED CITY COUNCIL ACTION
Members of the Finance Committee are asking the full City Council to take action
considering the adoption of the attached Resolution establishing a prevailing wage policy
for the City of Hastings.
BACKGROUND
The Federal Davis-Bacon Act requires the payment of prevailing wages on any project
that receives federal funding. Similar requirements exist for projects that receive funding
from the State and the County. Currently, the City of Hastings does not have a prevailing
wage requirement for projects funding strictly by the City of Hastings.
Throughout the last several months, members of the Finance Committee have been
addressing the possible contents of a prevailing wage policy, after having received
direction at the full meeting of the City Council on January 7, 2008. As a result of their
deliberation, the attached Resolution, outlining a policy on the requirements relating to
the payment of prevailing wage is included for your consideration. Key components of
the policy are as follows:
l.) The prevailing wage provision will be required on any contract involving City
facilities and public improvements in an amount greater than $100,000, which is
the amount that coincides with the State law requiring competitive bids.
2.) The City will obtain from the Minnesota Department of Labor and Industry the
certified prevailing wages for those employees expected to work on the project.
3.) The prevailing wage policy must be included in the plans and specifications for
each project, indicating the City's requirement that prevailing wages be paid on
the project.
4.) The apparent low bidder will be required to submit the listing of wages and fringe
benefits it expects to pay on the project, illustrating their commitment to pay the
prevailing wage.
5.) Those bidders who choose not to comply with the prevailing wage provision shall
not be considered as responsible bidder and thus ineligible for contract award.
6.) Contractors shall be required to submit to the City their payroll records for
inspection to assure compliance with the prevailing wage policy.
7.) The policy includes a description of what would be considered a violation and the
subsequent action available to the City to enforce compliance.
8.) The City will retain a listing of those contractors considered in non compliance
with the prevailing wage policy, thus precluding them from the opportunity to be
considered further for contract awards.
The prevailing wage policy does not apply to the City's economic development programs
such as the land subsidy, tax increment financing or bonding authority. While those
provisions were once discussed, it was agreed the policy should include contracts the City
has entered into for various public facilities and public improvements.
David M. Osberg
City Administratc
RESOLUTION #
Resolution of the City of Hastings
Establishing a Prevailing Wage Policy
WHEREAS, The City of Hastings determines that it is in the public interest that
projects involving City facilities and City public improvement projects be constructed by
the best means and highest quality of labor reasonably available, and that persons
working on such projects be compensated according to the fair value of services they
perform; and
WHEREAS, The City Council of the City of Hastings determines that wages for
laborers and employees on projects, whether financed in whole or in part by City funds
shall be comparable to wages paid for similar work in the City; and
WHEREAS, The establishment of a prevailing wage rate to accomplish these
objectives is authorized by Minnesota State Statute and the Minnesota Department of
Labor and Industry conducts studies and certifies annually the prevailing wage for State
funded construction projects in commercial construction in Dakota County for all classes
of labor commonly or customarily used in such construction projects; and
WHERAS, The City of Hastings wishes to provide general guidance to the
contractors, the general public and others who are seeking to conduct business with the
City of Hastings on how it expects its policy to be implemented with the City contracts
governed by this policy; and
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF HASTINGS, THIS 4th DAY OF AUGUST, 2008 that it hereby adopts the
following policy concerning all contracts involving City facilities or City improvements
in an amount greater than $100,000:
a.) The language included in this policy shall be incorporated in all plans,
specifications, bids and contracts, and that this same language shall operate as
the ongoing policy of the City of Hastings with respect to any such plans,
specifications, bids and contracts.
b.) The Prevailing wage is the rate of wages and benefits certified as prevailing
by the Minnesota Department of Labor and Industry under Minnesota Rules
Section 5200.1010 and Minnesota Statutes Section 177.42, Subdivision 6 for
the area where the project is located. Prior to entering into any contract
expecting to be in an amount greater than $100,000 the City shall request and
obtain from the Minnesota Department of Labor and industry as provided in
Minnesota Rules 5200.1018 the certified prevailing wage rates for each
classification of employees expected to work on the Project. Copies of
certified prevailing wage rates shall be kept on file with the City for the life of
the Project.
c.) All invitations for bids and all contracts entered into for construction,
alteration or repair of public buildings, bikeways, trails, roads and bridges in
amounts over $100,000 shall include a statement indicating that the City
expects the current prevailing wage rate, as of the date of the issuance of the
initial plans and specifications shall apply to the contract for construction as if
fully set forth therein and all contractors and subcontractors shall be expected
to fully comply with the prevailing wage during the entire contract term.
d.) After bid opening and prior to contract award, the apparent low bidder shall
submit to the City a list of all anticipated subcontractors and the various
classes of laborers to be employed on the contract work by the contractor or
any subcontractor, together with a schedule of wage rates and fringe benefits
to be provided such employees. It is required that such wage rates and fringe
benefits shall be at least the required prevailing wage rate.
e.) Only those contractors who have submitted bids that clearly indicate that they
will comply completely with the City's prevailing wage policy will be given
consideration for award of the contract. Failure to indicated compliance with
the City's prevailing wage policy shall result in the contractor being
disqualified from further consideration and characterized as anon-responsible
bidder, and thus ineligible for consideration of contract award.
£) Each contractor and subcontractor performing any work subject to the
provisions of this policy shall furnish to the City copies of all Project payroll
records not later than 14 days after the end of each pay period. The City shall
examine and retain copies of said payroll records for a period of at least three
years to ensure compliance with the Prevailing Wage obligation. Upon
request, the City shall make copies of payroll records available to members of
the public, subject to the requirements of the Minnesota Government Data
Practices Act, Minnesota Statutes Section 13.01, et seq.
g.) A contractor who or subcontractor working on a Project will be considered to
have materially breached its contract or subcontract if it: (1.) fails to pay the
Prevailing Wage Rate as defined herein and set forth in the contract or
subcontract; (2.) misclassifies employees to avoid paying the appropriate rate
certified by the Department of Labor and Industry; or (3.) fails to furnish
payroll records to the City.
h.) The City shall ensure compliance with this Policy and shall designate an
individual to hear and investigate any complaints and ensure that appropriate
action is taken. The City may take any action necessary to enforce
compliance, including but not limited to, withholding contract payments until
such time as the contractor and/or subcontractor makes aggrieved employees
whole for all lost wages or benefits and/or instituting a civil action for
liquidated damages, rescission of the contract or subcontract or an injunction
or specific performance of the contract or subcontract.
i.) The City shall prepare and maintain a list of all persons, firms and contractors
who have failed to comply with the prevailing wage policy of the City of
Hastings or otherwise indicated they have no interest or intention of
complying with the prevailing wage policy of the City of Hastings. No further
contracts shall be awarded to any person, firms or contractors who fail to
comply or refuse to comply with the Prevailing wage policy of the City of
Hastings.
ADOPTED BY THE HASTINGS CITY COUNCIL THIS
4th Day of August, 2008.
Ayes:
Nays:
Paul J. Hicks
Mayor
Melanie Mesko Lee
City Clerk
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