HomeMy WebLinkAboutX-A-01 Resolution Approve Amendments to Resolution No. 8-09-08 Regarding Prevailing Wage on City Projects City Council Memorandum
To: Mayor Fasbender & City Council Members
From: Ryan Stempski – Public Works Director/City Engineer
Date: January 11, 2022
Item: Approve Amendments to Resolution No. 8-09-08 – Prevailing Wage Policy on City Projects
Council Action Requested:
The Council is requested to approve amendments to Resolution No. 8-09-08 (Prevailing Wage Policy on
City Projects) (1) to increase the project amount for the Policy to apply and (2) to allow the City Council
to give an exception to the Policy for unique projects.
Background Information:
(1) The Prevailing Wage Policy on City Projects was approved in 2008, and due to inflation, there is a
need to update the minimum dollar amount that applies to the Policy. Staff is recommending the Policy
increase the current minimum amount from $100,000 to $175,000. The recommended amount of
$175,000 is a consistent threshold with the Minnesota Competitive Bidding Requirements in Cities. The
Competitive bidding law typically involves the solicitation of sealed bids and the award of the contract to
the “lowest responsible bidder”. (2) To accommodate unique and specialized projects, the proposed
amendments would provide City Council with the ability to allow an exception to the Prevailing Wage
Policy.
Committee Discussion: $175K threshold recommended by Finance Committee 12/21/2021; $175K
threshold and unique project exception recommended by Operations Committee 1/4/2022.
Financial Impact:
Prevailing Wage is required when Federal or State Funds are used on any portion of a City Project,
therefore many projects are subject to prevailing wage. Most municipalities do not have a prevailing
wage requirement unless receiving funding from these sources.
Attachments:
Original Resolution No. 8-09-08
Amended Resolution (showing minor redline changes)
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RESOLUTION #
AMENDING RESOLUTION #8-09-08
of the City of Hastings
Establishing a Prevailing Wage Policy
WHEREAS, the City Council adopted Resolution 8-09-08 on August 4, 2008, that implemented a
Prevailing Wage Policy on all contracts involving City facilities or City property, if the project exceeded
$100,000; and
WHEREAS, The City Council recognizes that some special projects may need to be given an
exception to the requirements of Resolution 8-09-08 if there are unique circumstances involved such as
specialized labor, or there will be no substantial benefit to the City if Resolution 8-09-08 were applied to
the project; and
WHEREAS, the City Council also recognizes that Minn. Stat. Section 471.345 has a requirement for
publicly bidding projects over $175,000, while Resolution 8-09-08 applies to projects over $100,000; and
WHEREAS, the City Council desires to amend Resolution 8-09-08 to allow the Council to approve
special exceptions to Resolution 8-09-08 and to increase the threshold of its applicability from $100,000
to $175,000.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS, that it hereby
adopts the following policy concerning contracts involving City facilities of City improvements in an
amount greater than $175,000, unless excepted by the City Council:
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$175,000 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.) Unless a project is excepted from this Resolution by the City Council, Aall 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$175,000 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 full
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.
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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 a non-
responsible bidder, and thus ineligible for consideration of contract award.
f.) 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 Date Practices Act, Minnesota
Statutes Section 13.01, et seq.
g.) A contractor who or subcontractor working on a Project who is subject to the provisions of
this policy 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 of 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 on_____, 2022, by the following vote:
Ayes:
Nays:
Absent:
Mary Fasbender, Mayor
ATTEST:
Kelly Murtaugh, City Clerk (City Seal)
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