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AN ORDINANCE AMENDING CHAPTER 2, ARTICLE IV, SECTION 2-26 OF THE DULUTH CITY CODE TO EXEMPT CERTAIN CITY SINGLE-FAMILY HOUSING PROJECTS FROM CITY PREVAILING WAGE REQUIREMENTS.
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CITY PROPOSAL:
The city of Duluth does ordain:
Section 1: That Chapter 2, Article IV, Section 2-26, paragraph (g) of the Duluth City Code is amended as follows:
Sec. 2-26. Wage rates and hours for city projects.
(a) Any covered project shall contain a stipulation that no laborer, mechanic or apprentice-trainee employed directly upon the project work site by the contractor or any subcontractor shall be permitted or required to work at a rate of pay less than the prevailing wage rate; nor shall any such employee be permitted or required to work more than eight hours in any work day or 40 hours in any work week unless he is paid at a rate of at least 1-1/2 times the basic hourly rate for all hours in excess of eight per day or 40 per week and unless he receives fringe benefits that are at least equal to those in the prevailing wage rate; provided that whenever employer and employee organizations employing and representing a majority of a class of workers in a particular industry within the city jointly certify that the maximum number of hours that such persons may work under existing labor agreements before overtime wages must be paid differs from the hours specified in this paragraph, the maximum number of hours specified in such labor agreements shall be substituted for those specified above in applying the provisions of this paragraph to such workers;
(b) All contracts for covered projects shall have applicable schedules of prevailing wage rates set forth in the contract. Schedules of applicable prevailing wage rates shall be present on all project job sites and shall either be posted on the site or be on the person of any supervisor in charge of the job site;
(c) Employees on covered projects shall be paid at least weekly. Fringe benefits shall be paid either in cash or to an employee benefit plan that has been approved by the U.S. department of labor;
(d) Any contractor or subcontractor working on a covered project shall furnish the city with a copy of all payrolls relating to the project. Such payroll reports shall be submitted weekly on U.S. department of labor standard forms or their equivalent to the employee of the city in charge of supervising contract performance;
(e) No contractor or subcontractor working on covered a project shall evade or attempt to evade the provisions of this Section through the use of nonrecognized training programs. The only employees involved in training programs that shall be allowed to work on projects covered by this Section shall be apprentice-trainees as defined by this Article;
(f) Any person violating the provisions of this Section shall be guilty of a misdemeanor with each day of violation constituting a separate offense. In addition, if the prevailing wage rate is not paid to employees working on a project, the city of Duluth may withhold contract payments to the contractor until such deficiencies are corrected;
(g) This Section shall not apply to: (1) projects that do not meet the definition of a covered project; (2)nor to materialmen who do no more than deliver materials to the work site, except that this Section shall apply to employees who deliver asphalt, concrete or mineral aggregate such as sand, gravel or stone where such material is incorporated into the project by depositing the material substantially in place, either directly or through spreaders, from the transporting vehicle; or (3) covered projects for the new construction or rehabilitation of fully detached single-family affordable homeownership units for which the city investment or financial support covers no more than ten fully detached single-family affordable homeownership units. For purposes of this paragraph, "affordable homeownership" means housing targeted at households with incomes, at initial occupancy, at or below 115 percent of the state or area median income, whichever is greater, as determined by the United States Department of Housing and Urban Development.
Section 2: That this ordinance shall take effect and be in force 30 days from and after its passage and publication.
Statement of Purpose
STATEMENT OF PURPOSE: This ordinance amends Chapter 2 of the City’s Legislative Code which establishes prevailing wage requirements for certain covered construction projects. These requirements also include a threshold for projects receiving funding of $2,000 or more from the City. The proposed amendment aligns with state prevailing wage requirements governing single-family affordable home construction and rehabilitation projects, by exempting such projects that involve city financial assistance covering up to 10 housing units.