ORD 35699 - Amend chapter 10 of municipal code pertaining to living wage ordinance 2.
Af
��o` �,s� RECEIVED Law Department
tv" rtr Omaha/Douglas Civic Center
�W q r^, I1 t AUG C _q 1819 Famam Street,Suite 804
r w 1J! H U Omaha,Nebraska 68183 0804
° ry (402)444 5115
A�ren FESRU�'e Telefax(402)444-5125
City of Omaha OMAHA, NE3RAS)(A Paul D.Kratz
Mike Fahey,Mayor City Attorney
Honorable President
and Members of the City Council,
e of the attached Ordinance, prepared at the request of the Mayor, is to revise Section
XHI of Chapter maha Municipal Code, the Omaha Living Wage Ordinance, to
exempt the City of Omaha from its pro 's•a nddtto change the effective date for annual updates
to this wage. The changes are to exempt the City fr` rt e p ovisions of this ordinance and to
change the effective date for annual updates to January 1 are requeste a3Jor to aid in the
budgeting process.
Your favorable consideration of the attached Ordinance is hereby requested. 4:12'G a 1 4
p-S e/.--d'/D/, "--
Respectfully submitted, ,
a/4/i' .
•
Rosemarie B. Lee
Assistant City Attorney
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ORDINANCE NO. 3 5(' q c/
.1 AN ORDINANCE to repeal Article XIII. of Chapter 10 of the Omaha Municipal Code,
2 consisting of Sections 10-310 through 10-328, pertaining to the Omaha Living Wage
3 Ordinance; and to provide an effective date.
4 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
5 Section 1. That Article XIII. of Chapter 10 of the Omaha Municipal Code, consisting of
6 Sections 10-310 through Section 10-328 is hereby amended to read as follows:
7 "ARTICLE XIII. OMAHA LIVING WAGE ORDINANCE
8 Sec. 10 310. Purpose and title.
9
10 (b) The City of Omaha employs many individuals, awards many contracts to private
11 firms to provide services to the public and to city government and provides financial
12 assistance for the g economic development and job growth. Such
13 expenditures of public money are intended t o ublic " e b,. ^ eating jab,
14 expanding the city's economic base, promoting economic security for all citizens, and
15 providing public services. Such public expenditures should be spent only with deliberate
16
17 families with dignity. Sub poverty level es do not se e the public purpose and pllace
18
19 employers who pay sub poverty wages by providing their employees health care,
20
21
22 Sec 9-34n��icle app1icahle to new contracts and city financial assistance.
23 The provisions of this article shall apply to: (a) a contract entere
24 ,
25
26
27 a the eff ct„ e date ft,,; article .hich-itself meets the re ._,menu cf
28 this article. Any contract that results fromrequest f r „ a WP-)—er ^ eguest er
29 bid announced prior to the effective date of this article is exempt.
30
31 Sec. 10 312. Definitions.
32 For the purpose of this chapter the following definitions shall apply:
33 " -- -J eans th t __b_rdin^te --, m„ ,
s„b t rtit loo fp th,Ne caltl�s (U
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34 i i ; bids ra
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35
ORDINANCE NO. 3 5-6 9 9 ,• v,
PAGE 2
1 City means the City of Omaha and all city agencies, departments and offices.
2 City financial assistance recipient (CFAR)m ans any person or legal entity who receives
3 from the city financial assistance in an amount of$75,000.00 or more in any 12 month
4 period.
5 Categories of such financial assistance include, but are not limited to, grants, rent
6 subsidies, financial planning, the sale of land for less than its fair market value, land
7 writedewnsand-tax-eredits,Bend-finaneing-and-tw&-ineferftent-financing shall not be
8 regarded as financial assistance for purposes of this article. City staff assistance shall not
9 be regarded as financial assistance for purposes of this article. The forgiveness of a loan
10 ,
11 shall be regarded as financial assistance to the extent of any differential between the
12 amount of the loan and the present value of the payments thereunder, discounted over the
13 life of the loan by the applicable federal rate as used in 26 U.S.C. §§ 1274(d), 7872(f).
14 A tenant or leaseholder of a CFAR who occupies property or uses equipment or property
15
16 will employ at least 20 employees on this contract for each working day in each of 20 or
17 more calendar weeks in the 12 months after occupying or using said property, shall be
18 considered a "city financial assistance recipient" for the purposes of this article and shall
19 _o.erea fo th_ sam ..cd as the G A D cf..'hi_h tho a__ a ten nt or leaseholde .
20 "Contractor" means any person that enters into a service contract with the city in an
21 amount equal to or greater than $75,000.00, or more in any 12 month period.
22 Employee means any person who is employed (1) as a service employee of a contractor
23 or subcontractor under the authority of one ^ e „tracts an who rds
24 any of his or her time there^„, ; cludi„g b„t „ot l united to: hotel_employees, restau,,,Wit,
25 food service or banquet employees; janitorial employees; security guards; parking
26 attendants; health care employees; gardeners; waste management employees; and clerical
27 employees; or(2)by a CFAR; or(3)by a service contractor of a CFAR and who expends
28 at least half of his or her time on the premises of the CFAR and is directly involved with
29 ,
30 or(4)by the City of Omaha. Any person who is a managerial, supervisory or confidential
31
32 a, „de ndent „t, ct r,, o „ds at lest half of h; her time en the
33 contract that qualifies for CFAR.
34 Employer means any person who is a city financial assistance recipient, contractor,
35 subcontractor or the City of Omaha.
36 Person means any individual, proprietorship, partnership, joint venture, corporation,
37 limited liability company, trust, association, or other entity that may employ individuals
38 or enter into contracts.
39 Service contract means (1) a contract let to a contractor by the city for the furnishing of
40 services, to or for the city, except contracts where services are incidental to the delivery
41
42 greater than $75,000.00, or more in any 12 month period, or (2) a lease or license under
43 which services contracts are let by the lessee or licensee. A contract for the purchase or
44 lease of goods, products, equipment, supplies or other property is not a "service contract"
45 for the purpose of this definition.
ORDINANCE NO. 5(0 0/ = •.
PAGE 3
1 S„b. ntr ete e -h^ nte nt^ contract • ith (1) a contractor to assist
2 the contractor in performing a service contract or (2) a CFAR to assist the recipient in
3 performing the work for which the assistance is being given or to perform services on the
4
5 shall not be regarded as subcontractors except to the extent provided in subsection(e)(3).
6 T inee ---e- - person lle.1 i- ob train- g - ;ob-readi„ess pr m ee ducted b+
-r- n J- r O ^r J- - 1-^V
7 .
8
9 Sec. 10 313. Payment of minimum compensation to employees.
10 (a) Wages. Employers shall pay a wage to each employee of no less than the hourly
11 ,
12 d f ,l b l t 1 t 1 1 n f the f de.a1 rt le e1 for K family f four o f
acririccrncivv�vrzcrr�-a�rrr�Fcr�cnrvrcna. ,.1.. t..,......, �.,. .».�..�, .,� �.,...-
13 the contract that qualifies for CFAR. Except for uncompleted work on contracts
14 previously approved by the city, the hourly wage shall be adjusted on July 1 of each year
15
16 Sta to s D rt -e-t ef•re---- ---e Bu e the Census. Ho rl. g shalllbe based
17 a 40 hour work week and a 52 week year. Employers that provide their full timc
18 employees basic health insurance benefits, as defined in subsection 10 313(b) of this
19 chapter, shall pay an initial rate hourly ate of at lest 100 „ rcent-of-the f derall ert
Y" >
20 level for a family of four.
21 ('b) D healt-11--ifistir-ancebenef}tsHealth benefits-requir-edb3-this-afticl l
22 consist of the payment of at least $1.25 per-hourt as the „ of health care
23 b f f 1 „a their .le„ende„ts Proof„{the_prov;sion e f s,.c1, be„ef:ts must
24 be submitted by the city to qualify for the wage rate in subsection 10 313(a) for
25employees, .itt, 1,e.,lth benefits_
26
27 Sec. 10 314. Duration of requirements.
28 For CFARs, assistance given in an-ameunt- to ester than $7c 000 nn 12
29 th ,l h ll a pl; a ,itt, th; article r the life eftb.e ct e five
30 years in the case of assistance given to purchaseible property or
31 construct facilities, including but not limited to materials, equipment, fixtures,
32 ere and; t l l
33 A service contractor and subcontractor shall be required to comply with this article for
34 the term of the contract.
35
36 Sec. 10 315. Notifying employees of their potential right to the federal earned income
37 credit.
38 Employers shall inform employees making less than $12.00 per hour of their possible
39 right to the federal Earned Income Credit ("EIC") under § 32 of the Internal Revenue
40 Code of 1954, 26 U.S.C. § 32, and shall make available to employees forms from the
41 federal government informing them about the EIC and forms from the federal
42 government required to secure advance EIC pa
43 ,
44 b f th Y l > th 3ny das of am >plo..ment , „der tl,e terms o f this article
45 and as required by the Internal Revenue Code.
46
ORDINANCE NO. 5(o q
PAGE 4
1 Sec. 10 316. Contract review process and city reporting and record keeping.
2 ! he fin e de art„ nt shall ,lgate r„les-nn,l a ,l..tiorso„b•uv�w w seet toiev ie 3
4 preparations for contract negotiations subject to this article. Contract documents shall
5 insure that relevant language and information are included in cit„ ,,`room. is a„a other
6 relevant de „t,
7 (b) The finance department shall submit periodic reports t„ the t„ ee ncil which
8 shall ;n l„de the f flowing i f,«n tion:
9 (1) A listing and the status of all requests for proposals, service contracts and 1 se
10 agreements executed and financial assistance awarded, to which this article applies
11 ;
12
13 (2 a scriptienofevery-scan,. „ho ptio o nted b.
14 action of the city council.
15 (c) The finance department shall develop an administrative procedure and appeal
16 process subject to review and adoption by the city council for determining compliance
17 with this article.
18 (1) Such an appeal process shall be available to every bidder, proposer or applicant
19 who i been-deeme onto mpl rt witl��icle „h a; ,te +he dote ,+; ,
20 of applicability of this article to its business operation which will be involved it the
21
22 not be executed until there is resolution of the relevant appeal.
23 (2) Appeals shall be filed with the finance department within 21 calendar days of the
24 te-o t e-n t ce-o t cit tten e erminat on of no o p an reasons
25
26 (3) The finance department shall maintain recor ,
27 hearings, determinations and findings, and shall submit a regular report on compliance
28 with this article no less than annually to the city council. Special reports and
29 recommendations on significant issues of interest to the council will be submitted as
30 deem
31
32 Sec. 10 317. Noncompliance review and appeal.
33 Contractors, subcontractors and CFARs who fail to submit documents, declarations or
34 information required to demonstrate compliance with this article shall be deemed
35 0 0 „a s„bjeet t„ d;sgualifcation-
36
37 Sec. 10 318. Waivers.
38 (a) A CFAR who contends it is unable
39 previd -detailed-ex ation i r-w g- tetre-finanee-dep ent „hie
40
41 ility-to co with the-pro ions of tli --apt e4� �c ling-a-re plete--cos
42 ,
43 including wages and benefits to be paid all employees, as well as an itemization of the
44
45 CFAR must also demonstrate that the waiver= ' rther-the ta-sts-Qfthe-
46
ORDINANCE NO. 3 6L q GI
PAGE 5
1 wage jobs or better and will not be used to replace or displace-existing positions or
2
3 (b) The city council will grant a waiver only upon finding and determining that the
4 CFAR has demonstrated economic hardship and that a waiver will further the interests of
5 the city in providing training positions which will enable employees to advance into
6 permanent living wage jobs or better. However, no waiver will be granted if the effect of
7 the waiver is to replace or displace existing positions or employees or to lower the wages
8 of current employees.
9 ( e�=ers-€rein-th e—antic e dis . ^r a nd—�� l e-g ted only�� ere e
10 balance of competing interests weighs clearly in favor of granting the waiver. If waivers
11 are to be granted, partial waivers are favored over blanket waivers. Moreover, any waiver
12
13 for a new waiver which may be granted subject to the same criteria for granting the initial
14 waiter,
15 (d) The city council reserves the right to waive the requirements of this article upon a
16 finding and determination of the city council that waiver is in the best interests of the
17 city, e.g. when the city has declared an emergency due to natural disasters and needs
18immediate
19
20 Sec. 10 319. Exemptions.
21 (a) An employer shall be exempted from application of this article if(1) it employs
22 fewer than ten employees for each working day in each of 20 or more calendar weeks in
23 the current or preceding calendar year; (2) it obtains a waiver as provided herein; or(3) it
24 is an intermediary, such as a communitydevelopment ratio„ ^ n;ty bank,
25 which serves solely as a pass through agency for the granting of assistance to the
26 iedeyer
27 (b) A trainee shall be exempted for the period of training of not longer than 90 days
28
29 0 s for wh;ct, the fnancial istanee; „tended t^ ort
30 (c) Nonprofit 501(C)(3)organizations.
31 (d) Other governmental or quasi governmental agencies or political subdivisions until
32 their next budgetary year but not later than January 1, 2001.
33 (e) Recipients of community development block grant funds received by the city
34 from the United States Department of Housing and Urban Development. This exemption
35 tends to tenants or leaseholders of recipients of community development block grant
36 funds notwithstanding such inclusion in section 10 312(c) of this article.
37
38 Sec. 10 320. RFP, contract and financial assistance agreement language.
39 ,
40 this article shall contain the following two paragraphs or substantially equivalent
41 language:
42 (a) This contract is subject to the Living Wage Ordinance, of the Omaha Municipal
43 Code. The ordinance requires that, unless specific exemptions apply or a waiver is
44 ,
45 ,
ORDINANCE NO. 3 S(/ q r
PAGE 6
1
2 Ordinance, of the Omaha Municipal Code.
3 (b) Under the provisions of the Omaha Living Wage Ordinance, the city shall have
4 the authority, under appropriate circumstances, to terminate this contract and to seek
5 other remedies as set forth therein, for violations of the ordinance.
6
7 Sec. 10 321. Obligations of contractors and financial assistance recipients.
8
9 submit a completed declaration of compliance form, signed by an authorized
10 representative, along with each proposal. The completed declaration of compliance form
11 shall be made a part of the executed contract and, in addition, copies will be made
12 availt bl ,,b,ic as ection a n•� duri g;ts 1 g,,a:b s ness hou s.
�.,�t..,.�.. � `:mot... .. :t.j:nb.. nb�. r�C». .., .,.,
13 (b) Contractors and CFARs shall require their subcontractors and tenants/leaseholders
14 '
15 tenants/leaseholders agreement to comply shall be included in the contract between the
16 contractor and subcontractor or any agreement between a CFAR and
17
18submitted t„ the ty
19 (c) Contractors, subcontractors and CFARs shall maintain payrolls for all employees
20 and basic records relating thereto and shall preserve them for a period of three years after
21 termination of their contracts or city financial assistance.
22 (d) Contractors, subcontractors and CFARs shall give written notification to each
23 euFFent-a ew employee t time of h;re, of h;s or her rights to receive the benefits
24 ,
25
26 posted prominently in communal areas at the work site. A copy of said notification shall
27 be forwarded to the city which must include the following:
28 (1) Minimum compensation. The initial living wage rates of $8.19 per hour with
29
30 a a stme„ts i f , E �t pleted.: on .,nt:ac s evi sl
31
32 July 1 in proportion to the increase in the federal poverty level calculated by the United
33 States Department of Commerce applicable to the City of Omaha.
34 (2) Health benefits. Proof of the provision of such benefits shall be submitted to the
35 city not later than 30 days after execution of the contract to qualify for the wage rate in
36 section 10 313. Health benefits shall be provided to full time employees.
37 (3) Federal Earned Income Credit (EIC). Forms to inform employees earning less
38 than [$12.00] per hour of their possible right to EIC and forms to secure advance EIC
39 payments from the employer shall be provided to the eligible employees in English,
40
41 days f em»Ρlo.,.,,e„t un er the sub;eet ag. .en t.
42 (e) Contractors, subcontractors and CFARs shall permit aces—to work cites a„d
43 relevant payroll records for authorized city representatives for the purpose of monitoring
44 ,
45
ORDINANCE NO. 3 Sb 9 °J
PAGE 7
1 and-copying-vfT -0ll records f all f its employees€orthei-teri of trhe
2 contract or for five years whichever period of compliance is applicable.
3
4 Sec. 10 322. Retaliation and discrimination barred.
5 Contractors, subcontractors and CFARs shall not discharge, reduce the compensation of
6 or otherwise discriminate against any employee f r makin^ plaint- t„ the cit„
7 participating ; of its eedi„gs,=sing any civil des to enforce his er her
8 rights, or otherwise asserting his or her rights under this article. Contractors,
9 subcontractors and CFARs shall also be in compliance with federal law proscribing
10retaliation „g.
11
12 Sec. 10 323. Monitoring, investigation and compliance.
13 '
14
15 fellows:
16 (a) The finance department subject to the review and approval of the city council
17 i, l ,� of . ,les ,,, l reg l +: ns +l,e monit ri„rt„f the +; ns .f the coat , tors
18
19 review, investigation and resolution of specific concerns or complaints about the
20 employment practices of a contractor, subcontractor or CFAR relative to this article. In
21 such cases, the city ill ttempt t„ r olve the problem within 30-d�
22 (b) Where a violation of any provision of this article has been determined, the
23
24 ,
25
26 relief:
27
28 agreement for cause;
29 (2)---Pa543aek f a all-of the contracter-financial-assis.nee a..ardea by the City
30 of Omaha;
31 (3) Deem the contractor or CFAR ineligible for future city contracts and/or financial
32 assistance until all penalties and restitution have been paid in full;
33 (4) n bl to the City of Omah., it the „f$50 00 f each , eek for each
34 employee found not to have been paid in accordance with this article;
35 (5) Wage restitution for each affected employee.
36 (c) The city attorney shall promulgate procedures for legal enforcement of the
37 requirements of this article.
38
39 Sec. 10 324. Employee complaint process.
40
41 to the city and, at the employee's discretion, exhaust available employer internal
42 medies. Th `o. plaint to the city shall be ha„dled as follows_
43 (a) The employee shall submit to the city a completed complaint form and copies of
44 all documents supporting the allegation. The city shall provide the com„lain+ fe in
45 English and Spanish.
ORDINANCE NO. 3 6-6 9 °/
PAGE 8
1 (b) The city shall notify the agency and the employer of the complaint and seek
2 resolution within 21 days°from receipt of the complaint form. If resolution is not
3 accomplished, the city shall initiate an investigation and seek legal remedies, if
4 ppprep
5 (c) An employee claiming retaliation (such ass-termination, reduction in wages or
6 benefits or adverse changes in working conditions) for alleging noncompliance with this
7
8 (d) Trhe-co plaina turic or-itnesi enti � ill-not be-di'b lged to the employer
9
10
11 Sec. 10 325. Collective bargaining agreement supersession.
12 All of the provisions of this article, or any part hereof, may be waived in a bona fidc
13 collective bargaining agreement, but only if the waiver is explicitly set forth in such
14 agreement in clear and unambiguous terms.
15
16 Sec. 10 326. Expenditures covered by this article.
17 This article shall apply to the expenditure whether through aid to financial assistance
18 recipients, service contracts let by its financial assistance recipients of funds entirely
19 within the city's control and to other funds, such as federal or state grant funds, where the
20
21 Winds,
22
23 Sec. 10 327. Implementing regulations.
24 All implementing rules, regulations, and procedures promulgated by the finance
25 d to the city council for approval not later than August 8,
26 2000.
27
28 Sec. 10 328. Severability.
29 In the event that any provision of this article shall be held invalid or unenforceable by any
30 ,
31 "
32
33 Section 2. That Article XIII. of Chapter 10 of the Omaha Municipal Code, consisting of
34 Sections 10-310 through Section 10-328 as heretofore existing is hereby repealed.
35
ORDINANCE NO. 3 510 q 9
PAGE 9
1 Section 3. That this Ordinance shall bein full force and take effect on October 1, 2001.
INTRODUCED UNCILME R
0 APPROVED BY:
VETOED 9,46/
PASSED.
AUG 2 8 viol OLA 5-z MAYOR OF THE CITY OF OMAHA (DATE
&1 a s ; !armor) , K r a f-f SEP 1 1 2001- Y47�✓0/) /J 1' t&
ATTEST: 64Fi---il; QXOI'�S , . d//'/ea d,2
A5; a44l2cg, 7�oin 4, d, �
p �O/ A,thA, 4et,1 �oA
CITY CLERK F TH CITY OF OMAH DtXTE` /tea d% �l'1"4�UJ •��4
AFYROVED AS TO FORM:
•
CITY ATTORNEY DATE
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rw ; RECEIVED
rt11 SEP
Office of the Mayor
® ''tf�•C' T �U i SEP —14 AM 9' 5 1819 Farnam Street,Suite 300
o't .. Omaha,Nebraska 68183-0300
iO04, �rict CITY CL.EFiK (402)444-5000
41'FD FEBR FAX:(402)444-6059
City of Omaha OMAHA, F EBRASKA
Mike Fahey,Mayor September 4, 2001
Honorable President
and Members of the City Council,
I am returning Ordinance 35699 as amended by the City Council on August 28, 2001
with my veto stamp. As you know, the council introduced and passed this measure
sanctioning the outright repeal of the Living Wage.
I supported the Living Wage Ordinance during my campaign for Mayor and continue to
support it because I believe that it is the right thing to do. Although.I realize the majority
of city council members fundamentally disagree with me on this issue, I am disappointed
that the Council did not consider the compromise offered by my administration within the
context of the proposed 2002 city budget.
The amendment of the whole favored by the administration proposed to exempt all part-
time and seasonal employees from the Living Wage Ordinance. In doing so, this
compromise eliminated all costs to the city of implementing the Living Wage and it
provided common ground for all interested parties,helping bring our community
together. In addition, this compromise allowed city department heads ongoing flexibility
to hire valuable part-time and seasonal employees at wage levels needed to attract and
retain quality employees, including the lifeguards who so ably managed our city pools
and safeguarded our children this summer.
I understand that city council members have varying opinions on this issue. In the spirit
of working together, however, it is my hope that this veto will encourage the council to
reconsider the compromise offered by the administration that reduces all cost to the city
while preserving the original intent of the Living Wage. I believe this is the fiscally and
socially responsible thing to do and that it provides common ground for our community
on this issue.
Thank you for your consideration.
Sincerely,
)21.4.72.4
Mike Fahey
.Mayor
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MOTION BY COUNCILMEMBER
•
I hereby move that Council Document No. , Current Series, be amended in the
whole by substituting in lieu thereof the attached Ordinance.
APPROVED AS TO FORM:
- a a,y4-e_ s=-6_,),
TY ATTORNEY DATE
P:\Lawl\6110pjm.doc
ORDINANCE NO.
AN ORDINANCE to amend Chapter 10, Article XIII., Omaha Living Wage Ordinance, to
exempt part-time and seasonal employees of the City of Omaha from its provisions; to
change the effective date for annual updates to this wage; to repeal Section 10-312,
10-313, and 10-321 of the Omaha Municipal Code as heretofore existing; and, to provide
the effective date hereof.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
Section 1. Section 10-312 of the Omaha Municipal Code is hereby amended to read as
follows:
Sec. 10-312. Definitions.
(a) "Agency" means that subordinate or component entity or
person of the City (such as a department, office, or agency)
that is responsible for solicitation of proposals or bids and
responsible for he administration of service contracts or
financial assistance agreements.
(b) "City" means the City of Omaha and all City agencies,
departments and offices.
(c) "City financial assistance recipient" (CFAR) means any
person or legal entity who received from the City financial
assistance in an amount of$75,000 or more in a 12 month
period.
Categories of such financial assistance include, but are not
limited to, grants, rent subsidies, financial planning, the sale of
land for less than its fair market value, land writedowns, and tax
credits. Bond financing and tax increment financing shall not be
regarded as financial assistance for purposes of this article. City
staff assistance shall not be regarded as financial assistance for
purposes of this article. The forgiveness of a loan shall be
regarded as financial assistance to the extent of any differential
between the amount of the loan and the present value of the
payments thereunder, discounted over the life of the loan by the
applicable federal rate as used in 26 U.S.C. §§ 1274(d), 7872 (f).
•
•
5
ORDINANCE NO.
Page 2
A tenant or leaseholder of a CFAR who occupies property
or uses equipment or property that is improved or
developed as a result of the assistance awarded to the
CFAR and who will employ at least twenty employees on
this contract for each working day in each of twenty or
more calendar weeks in the twelve months after occupying
or using said property, shall be considered a"City financial
assistance recipient" for the purposes of this Ordinance and
shall be covered for the same period as the CFAR of which
they are a tenant or leaseholder.
(d) "Contractor" means any person that enters into a service
contract with the City in an amount equal to or greater than
$75,000.00.
(e) "Employee" means any person who is employed (1) as a
service employee of a contractor or subcontractor under the
authority of one or more service contracts and who expends
any of his or her time thereon, including but not limited to,
hotel employees, restaurant, food service or banquet
employees; janitorial employees; security guards; parking
attendants; health care employees; gardeners; waste
management employees; and clerical employees; or (2) by
a CFAR; or (3) by a service contractor of a CFAR and who
expends at least half of his or her time on the premises of
the CFAR and is directly involved with the funded project,
program or property which is the subject of city financial
assistance; or (4) by the City of Omaha as a full-time
employee except that aAny person who is a managerial,
supervisor or confidential employee or a part-time or
seasonal employee of the City is not an employee for
purposes of this definition; (5) any person who is not a
principal or independent contractor and expends at last half
of his or her time on the contract that qualifies for CFAR.
(f) "Employer" means any person who is a City financial
assistance recipient contractor, subcontractor or the City of
Omaha.
(g) "Person" means any individual, proprietorship, partnership,
joint venture, corporation, limited liability company, trust,
association, or other entity that may employ individuals or
enter into contracts.
ORDINANCE NO.
Page 3
(h) "Service contract" means (1) a contract let to a contractor
by the City for the furnishing of services, to or for the City,
except contracts where services are incidental to the
delivery of products, equipment or commodities, and that
involves an expenditure equal to or greater than seventy-
five thousand dollars ($75,000.00), or (2) a lease or license
under which services contracts are let by the lessee or
licensee. A contract for the purchase or lease of goods,
products, equipment, supplies or other property is not a
"service contract" for the purpose of this definition.
(i) "Subcontractor" means any person who enters into a
contract with (1) a contractor to assist the contractor in
performing a service contract or (2) a CFAR to assist the
recipient in performing the work for which the assistance is
being given or to perform services on the property which is
the subject of city financial assistance. Service contractors
of CFARs shall not be regarded as subcontractors except to
the extent provided in Subsection (e)(3).
(j) "Trainee" means a person enrolled in a job training or job
readiness program conducted by an organization whose
primary mission is to provide such services.
Section 2. Section 10-313 of the Omaha Municipal Code is hereby amended to read as
follows:
Sec. 10-313. Payment of Minimum Compensation to Employees
(a) Wages
Employers shall pay a wage to each employee of no less
than the hourly rates set under the authority of this Ordinance. The
initial rate shall be an hourly wage, defined below of at least 110%
of the federal poverty level for a family of four of the contract that
qualifies for CFAR. Except for uncompleted work on contracts
previously approved by the City, the hourly wage shall be adjusted
on July January 1 of each year subsequent to the issuance of annual
updates of the federal poverty level by the United States
Department of Commerce, Bureau of the Census. Hourly wages
shall be based on a forty-1 (40) hour work week and a fifty-two
(52) week year. Employers that provide their full-time employees
basic health insurance benefits, as defined in Section 10-313(b) of
ORDINANCE NO.
Page 4
this chapter, shall pay an initial rate hourly of at least 100% of the
federal poverty level for a family of four.
(b) Basic Health Insurance Benefits
Health Benefits required by this article shall consist of the
payment of at least one dollar and twenty-five cents ($1.25)
per hour towards the provision of health care benefits for
employees and their dependents. Proof of the provision of
such benefits must be submitted by the City to qualify for
the wage rate in 10-313(a) for employees with health
benefits.
Section 3. Section 10-321 of the Omaha Municipal Code is hereby amended to read as
follows:
Sec. 10-321. Obligations of Contractors and Financial Assistance
Recipients
(a) All proposed contractors and CFARs subject to the
provisions of this Ordinance shall submit a completed
Declaration of Compliance form, signed by an authorized
representative, along with each proposal. The completed
Declaration of Compliance form shall be made a part of the
executed contract and, in addition, copies will be made
available for public inspection and copying during its
regular business hours.
(b) Contractors and CFARs shall require their subcontractors
and tenants/leaseholders to comply with the provisions of
this Ordinance. Language indicating the subcontractor's or
tenants/leaseholders agreement to comply shall be included
in the contract between the contractor and subcontractor or
any agreement between a CFAR and tenants/leaseholders.
A copy of such subcontracts or other such agreements shall
be submitted to the City.
(c) Contractors, subcontractors and CFARs shall maintain
payrolls for all employers and basic records relating thereto
and shall preserve them for a period of three years after
termination of their contracts or city financial assistance.
A.
ORDINANCE NO.
Page 5
(d) Contractors, subcontractors and CFARs shall give written
notification to each current and new employee, at time of
hire, of his or her rights to receive the benefits under the
provisions of this Ordinance. The notification shall be
provided in English, Spanish and other languages spoken
by a significant number of the employees, and shall be
posted prominently in communal areas at the work site. A
copy of said notification shall be forwarded to the City
which must include the following:
(1) Minimum compensation — The initial living wage
rates of$8.19 per hour with health benefits or $9.01
per hour without health benefits will be adjusted
annually to correspond to adjustments, if any.
Except for uncompleted work on contracts
previously approved by the City, the living wage
shall be upwardly adjusted each year no later than
July on January 1 in proportion to the increase in
the federal poverty level calculated by the United
States Department of Commerce for the previous
year, and applicable to the City of Omaha.
(2) Health benefits — Proof of the provision of such
benefits shall be submitted to the City no later than
30 days after execution of the contract to qualify for
the wage rate in Section 10-313. Health benefits
shall be provided to full-time employees.
(3) Federal Earned Income Credit (EIC) — Forms to
inform employees earning less than [$12] pr hour of
their possible right to EIC and forms to secure
advance EIC payments from the employer shall be
provided to the eligible employees in English,
Spanish and other languages spoken by a significant
number of the employees within 30 days of
employment under the subject agreement.
d
ORDINANCE NO.
Page 6
(e) Contractors, subcontractors and CFARs shall permit access
to work sites and relevant payroll records for authorized
City representatives for the purpose of monitoring
compliance with this Ordinance, investigating employee
complaints of non-compliance and evaluating the operation
and effects of this ordinance, including the production for
inspection and copying of its payroll records for any or all
of its employees for the term of the contract or for five
years whichever period of compliance is applicable.
Section 4. Sections 10-312, 10-313, and 10-321 of the Omaha Municipal Code as
existing, are hereby repealed.
Section 5. This Ordinance shall be in full force and take effect fifteen days from and
after its passage.
INTRODUCED BY COUNCILMEMBER
APPROVED BY:
MAYOR OF THE CITY OF OMAHA DATE
PASSED
ATTEST:
CITY CLERK OF THE CITY OF OMAHA DATE
APPROVED AS TO FORM:
/3
CITY ATTORNEY DATE
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MOTION BY COUNCILMEMBER - s +
•
I hereby move that Council Document No. oZ UN, Current Series, be amended in the
whole by deleting the Ordinance in its entirety and substituting in lieu thereof the attached
Ordinance.
APPROVED AS TO FORM:
a
ASSI.T T CITY ATTORNEY DATE
P:\Lawl\12251Z.doc
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at
ORDINANCE NO.
1 AN ORDINANCE to repeal Article XIII. of Chapter 10 of the Omaha Municipal Code,.
2 consisting of Sections 10-310 through 10-328, pertaining to the Omaha Living Wage
3 Ordinance; and to provide an effective date.
4 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
5 Section 1. That Article XIII. of Chapter 10 of the Omaha Municipal Code, consisting of
6 Sections 10-310 through Section 10-328 is hereby amended to read as follows:
7 "ARTICLE XIII. OMAHA LIVING WAGE ORDINANCE
8 Sec. 10 310. Purpose and title.
9 (a) This article shall be known as the "Omaha Living Wage Ordinance."
10 (b) The City of Omaha employs man ,
11 firms to provide seFvices to the publie-and-te-eit-y-gevemfnent-and-prevides-finaneiat
12 assistance for the purpose of promoting economic development and job growth. Such
13 expenditures of public money arc intended to serve a public purpose by creating jobs,
14
15
16 purpose to promote the creation of jobs that alloweitizens-te-suppeFt-themsePies-and-theif
17 families t1, di +. Sub ert y le el V
esdo
v n;,+ CIN e the public purpose and pace
18 an undue burden on taxpayersa the nity which must further subsidize public
19 employers who pay sub poverty wages by providing their employees health care,
20 housing, nutrition, energy assistance, and other government provided services.
21
22 See.10-31 n,-t 1 l ble te ntr_ + d t f 1 +
23 1ovisie „to
.r ua u
24 assistance provided after the effective date of this article [January 1, 2001]; (b) a e-mart
25 e
26 financial threshold requirement of this articled ) ��YY ,,,f lee.,tal-fina cia' ;stance
27 _ 'd d � fi tl•. f f ti .1 t f th article :tic is . eet tl•. --ents of
28
29 b•a d r + the eff cti e date ftl, r
`� cauu�clieeti pt
r m...
30
31 Sec. 10 312. Definitions.
32 . For the purpose of this chaptert'' f " d f nitions hall apply :
33 ^rr of the city (such as a
34 d
35 t&
ORDINANCE NO.
PAGE 2 I
1 City means the City of Omaha and all city agencies, departments and offices.
2 City financial assistance recipient (CFAR) means any person or legal entity who receive&
3 ,
4 period.
5 b , b
6 subsidies, financial planning, the sale of land for less than its fair market value, land.
7 writedowns, and tax credits. Bond financing and tax increment financing shall not be
8 regarded as financial as sta---- f-_ r _ _ e f th; article C;tf ff + shall 11ot
r,-r^ .Tom�ulav� la al �
9 be regarded as financial assistance for purposes of this article. The forgiveness of a loan
10 shall be regarded as financial assistance, and a loan provided at below market interest rate
11 shall be regarded as financial + t + t of a ' diff,-e„tia' be vee +he
12 amount of the loan and the present value-of the payments thereunder, discounted over the
13 t ' b the ppl cable-€ode to as-used-i 26�1.S.r� c i �n(d)�7872 �_
14 A tenant or leaseholder of a CFAR who occupies property or uses equipment or property
15
16 will employ at 1 ast 20-employees on this contract for ach working day in each of 20 or
17 more calendar weeks in the 12 months after occupying or using said property, shall be
18 considered a "city financial assistance recipient" for the purposes of this article and shall
19 be covered for the same period as the CFAR of which they are a tenant or leaseholder.
20 "Contractor" means any person that enters into a service contract with the city in an
21
22
23 or subcontractor under the authority of one or-mere-seriiee-centracts-and-whe-expends
24 any of his or her time thereon, including but ___t l_i itea to: hotel_ -mp loyee to,rant r .�LQAl-all�.
25 food service or banquet employees; janitorial employees;ss r.uri+" ""ar ; parv'ng
26 , ; b
27 ,
28 at-least-half-ef-hie-er-her-time-en-theprernises-ef-thend4s-directly-invelved-with
29 the funded project, progra
31 employee is not an employee for purposes of this definition; or (5) any person who is not
32 a principal or independent contractor and expends at least half of his or her time on the
33 contract that qualifies for CFAR.
34 Employer m ans any person whe is a city financial assistance recipient, contractor,
35 subcontractor or the City of Omaha.
36 ,
37 ,. .+ a �• bil + + + do the o tit +, + , a ,;a, als
38 or enter into contracts.
39 Service contract means (1) a contract let to a contractor*the t„ f r the f;rnoshing-of
40 eli-ver y
41 ,
42 greater than $-75,000.00, er more in any 12 month riod e R le -" nde
43 which services tracts are le
44 lease of goods, products, equipment, supplies er ether property is not a "service contract"
45 for the purpose of this definition.
• ORDINANCE NO.
•
PAGE 3
1 Subcontractor means any person who enters into a contract with (1) a contractor to assist
2 the contractor in performing a service contract er (2) „ C>~nn to art therecipient, i n
3 performing the work for which the assistance is being given or to perform services on the
4 property which i.Tthe-eubject-e€-cit3{-fnaneial--assistence. Ser• nt_acters of CF n s
5 shall not be regarded as subcontractors except to the extent provided in subsection (e)(3).
6 Trainee m ans a person enrolled in a job training by
7 an organization whose primary mission is to provide such services.
8
9 Sec. 1-8-3-13. P. „t fm „ensatio le es.
10 (a) Wages. Employers shall pay a wage to each employee of no less than the hourly
11 ,
12 defined below, of at lust 110 percent of the federal ert~' level for ^ family of f urtiiour f
13 the contract that qualifies for CFAR. Except for uncompleted work on contracts
14 ,
15 subsequent to the--issuance of a
16 States Department of Commerce, Bureau of the Census. Heurly wages shall be based on.
17 a 40 hour work week and a 52 week year. Employers that provide their full time
18 employees basic h alth insurance benefits, as defined in subsection 10 313(b) of this
19 chapter, shall pay an initial rate hourly rate of at least 100 percent of the federal poverty
20 level for a family of four.
21 (b) B sic health urance benefits. Health h f+ red by this article shall
22 + f th + f' + l t $1 25 ., ho to Ards th •sio of health e
Y , r Iry a. av„
23 benefits for employees and t" a p a + D of o f the p vis; e ch be efts st
24 be submitted by the city to- qualify fer bsectio 10 313(.,) _for
25 employees with-health benefits.
26
27 Sec. 10 314. Duration of requirements.
28 > C ^n + n + l + ater th.,,, $7c 000 00 rn any 12
, � rnrr-arr-arrro crrrti-c--..i--- a ,
29 m th rl h 11 li :th thi .,r i 1 f th life „f +he ct f, e
`1 Y
30 years in the case of assistance given to p b
31 construct facilities, including but not limited to materials, equipment, fixtures,
32 merchandise, machinery or the like.
33 A service contractor and subcontractor shall be required to comply with this article for
34 the term of the contract.
35
36 nee. 10 3 5 N +•
! �7 r � zrcrui rr
37 credit.
38 E 1 h ll f 1 a l than$1 7 00 h f tho sible
�t t 7 rrFrc�s rrrurr—�T—vv }�. r Y,
39 r ight to + fed ral Earned Itt f l'+ ("EI!"'If e 32 f+h T + 1 Revenue
u
40 cede-e 9-54,26 U S.C. § 32, 7 t, ll l lab + l ,,,,s—iom-thee
r re
41 federal government informing them abeut the EIC and forms from the federal
42 gevernment required to secure advance BIC payments. These forms shall be provided-to
43 the eligible employees in English Spanish and ether languages spoken by a significant
44 to f-t
h f +l- Y1 the 2(1 �ix�'i cif critiviv�zxxtira�czrau�a tll ie e
45 and as required by the Internal Revenue Code.
46
. ORDINANCE NO.
PAGE 4
1 Sec. 10 316. Contract review process and city reporting and record keeping.
2 (a) The finance department shall promulgate rules and regulatio
3 ,
4 preparations for centract negotiations subject to this article. Contract documents shall.
5 insure that relevant language and information arc included in city agreements and other
6 relevant documents.
7
8 shall include the following information:
9 (1) A listing and the status of all requests fer proposals, service contracts and lease
10 agreements executed and financial assistance awarded, to which this article applies
11 including the term, dollar amount and the service performed or assistance provided;
12
13 (2) A description of every instance where an exemption or waiver was granted by
14 • action of the city council.
15
16 process subject to review and adoption by the city council for determining compliance
17 with this article.
18 (1) Such an appeal process shall be available to every bidder, proposer or applicant
19 who has been deemed noncompliant with this article, or who disputes the determination
20 of applicability of this article to its business operation-which will be i nvelve e
21 proposed contract. A contract or other documents regarding-the-cmaneial-assistaiiee-shall
ll
22 not be executed until there is resolution of the relevant appeal.
23 (2) Appeals shall be filed with the finance department with", 2 ale„dar days of the
24 '
25 therefor, or written determination of the applicability of this article.
26 (3) The finance department shall maintain records pertaining to all complaints,
27 hearings, determinations and findings, and shall submit a regular report on compliance
28 with this article no less than annually to the city council. Special reports and
29
30 deemed appropriate.
31
32 Sec. 10 317. Noncompliance review and appeal.
33 Contractors, subcontractors and CFARs who fail to submit documents, declarations or
34 information required to demonstrate-compliance— tlh -this—article hal��e d
35 nonresponsive and subject to disqualification.
36 •
37 Sec. 10 318. Waivers.
38 a
39 provide a detailed explanation in writing to the finance 4lepertment whie-h--nay
40 send ^ w iver to the city council. The explanation must set forth the reasons for its
41 inability to comply with- the provisions of this- article, including a complete cost
42
43 including wages and benefits te-be paid all employees, as well as an itemization of the
44
45
46 creating training positions which will enable employees to
ORDINANCE NO.
PAGE 5
1 g
2 employees or to lower the wages of current employees.
3 (b) The city council will grant a waiver only upon finding and determining that the
4 CFAR has demonstrated economic hardship and that a waiver will further the interests of
5 the city in pr E g t. „g p siti „h;ch fill e able 1 , e s to adva„ce .,t
�lravzvy��.r cv uu ull��
6 b e effect of
7 g
8 of current employees.
9 (c) Waivers from the article are disfavored, and will be granted only where the
10
11 ,
12 h l t ,a th n+ the e„d of th the CF n D l
ay Yearrppy
13 b
14 waiver.
15 (d) The city council reserves the right to waivethe Ye nts of this_articlle ' e
16 a• a d + t• f th •+yzlus ci t� + tt, m best e ests f' l,„ te
17 city, e.g. when the city has declared an emergencyt, natural disaste, and „ eds
18 immediate services.
19
20 Sec. 10 319. Exemptions.
21 (a) An employer shall be exempted from application of this article if(1) it employs
22
23
24 is an intermediary, such as a community development corporation or community bank,
25 which serves solely as a pass through agency for the granting of assistance to the
26 intended employer.
27 (b) A trainee shall bee Y* a f r .�t� ^ ofa trai„ing t to ger than 90 days
28
D Y J Y r rr
29 services for which the financial assistance is intended to support.
30 (c) Nonprofit 501(C)(3) organizations.
31 (d) Ot + i
C � 1 lliul Y
32 theirt i a tar, r but not l terthan January 1, 200
33 (e) Recipients of community
34 from the United States Department of Housing and Urban Development. This exemption
35
36 funds notwithstanding such inclusion in section 10 312(c) of this article.
37
38 Seer
39 g 3bjec-t-to
40 ivelent
41 language:
42 (a) This contract is s
43 ,
44 • ,n + a + +s nancial
b 1 JV1 r >
45 g
• ORDINANCE NO.
PAGE 6
1 Such rate shall-be--adjusted--annually-puf&uant--te--the--terms-ef-the--Omeha--Living-Wage
2 Ordinance, of the Omaha Municipal Code.
3 (b) Under the provisions of the Omaha Living Wage Ordinance, the city shall have
4 the authority, under appropriate circumstances, th + d + t
5 other remedies as set forth therein, for violations of the ordinance.
6
7 S'ec'. 10 32 Oblignt_ons of contractors-andfnancial ssistaln ee recipients
8 ( ) n t t a tr + r a CF n v n „b; et t„the o f this .,..title sha l
/ r r "i1;T yl culti aal
9 submit a completed declaration of compliance form, signed by an authorized
10 representative, along ,itt, each proposal The completed declaration of compliance form
11It+ VVlll 1V{.L
11 � of e-exec ed-con ct a d, in ad e„� ill be ,r de
12
13 (b) Contractors and CFARs shall require their subcontractors and tenants/leaseholders
14
15 tenants/leaseholders agreement to comply shall be included in the contract between the
16 contractor and subcontractor or any agreement between a CFAR and
17 tenants/leaseholders. A copy of such subcontracts or other such agreements shall be
18 submitted to the city.
19 (c) Contractors, subcontractors and CFARs shall mai
20 and basic records relating thereto and shall preserve them f er;oa (three y rs µf`
21 termination of their contracts or city financial assistance.
22 (d) Contractors, subcontractors and CFARs shall give written notification to each
23
24 under the provisions of this article. The notification shall be provided in English, Spanish
25 and other languages spoken by a significant number of the employees, and shall be
26 + d tt ee nal- eas--at--the-work-site n of n ;a tificatie shalt
27 be forwarded to the city which must include the following:
28 (1) Minimum compensation. The initial living wage rates of $8.19 per hour with
29 health benefits or $9.01 per h •th t h lth b ft l b adjusted-annually to
30 correspond to adjustments, if any. Except for uncompleted work on contracts previously
31 ,
32 July 1 in proportion to the increase in the federal poverty level calculated by the United
33
34 (2) u ltl, b fit f f+t, he
r '
35 city not later than 30 da o -ate in
36 seet• t 0 3 t u ltL. b fit h It br de t fill time o pte yeen
37
38 + [$t not hour-fie fie- hts -to ET a + a err
z o aucc s=rc
39 �' dish,
40 Spanish a th lb bin n pok_a t,J A a signific nt r mber-ef the employees within-30
41 days of employment under the subject agreement.
42 ,
43 relevant payroll records for authorized city representat-iv er-- e rpose-ef-monitoring
44 Ee ce-�oio'+t, +t, r+ t + + t nd
� b b r J r
45 on
• • ORDINANCE NO.
PAGE 7
1 and copying of it payroll records for any or all of i
2 contract or for five years whichever period of compliance is applicable.
3
4 Sec. 10 322. Retaliation and discrimination barred.
5 Contractors, subcontractors and CFARs shall not discharge, reduce the compensation of
6 or otherwise discriminate against any employee for making a complaint te-the-eit3y
7 participating in any of its proceedings, using any civil remedies to enforce his or her
8 rights, or otherwise asserting his or her rights under this article. Contractors,
9 subcontractors and CFARs shall also be in compliance with federal law proscribing
10 retaliation for union organizing.
11
12 Sec. 10 323. Monitoring, investigation and compliance.
13 The provisions of this article will augment th yls a' and customa.-y p} edere for
14
15 follows:
16 (a) The finance department subject to the review and approval of the city council
17 b
18
19 • ig
20 employment practices of a contractor, subcontractor „r _l_t: _ t_ thi rticle In
21
Y Y
22 (b) Where a violation of a
23 contractor will be given a written notice by the city per the rules and regulatiensShetild
24 >
25
26 relief:
27 (1) Suspension and/or termination of the contract, subcontract e fna ci_ll :=sistane
28 agreement for cause;
29 (2) Payback of any or all of the contract or financial assistance awarded by the City
30 of Omaha;
31 (3) Deem the contractor or CFAR ineligible for future city contracts and/or financial
32 ti „ It n stitut , n ha b e r i full•
33 (1) A fine payable to the City of Omaha in--the--siarri-ef--$-54.430-fer-eaeh-weelE-fer-eaeh
34 employee found not to have been paid in accordance with this article;
35 (5) Wage restitution for each affected employee.
36 (c) The city attorney shall promulgate procedures for lei l
37 requirements of this article.
38
39 Sec. 1-9- . pl yeecomp ain+
40 An employee who alley ' t of this rt resort sue-h-act:&
41 to the city and, at the employee's discreti —internal
42 remedies. The complaint to the city sh ll be-handled as follows:
43 (a) The employee shall submit + tt •+ Q eerro=c+ ,l ompl a==t f "" .d-c piess of
44 „ a + „ + T,, + ,, �, d the ompinint-€orms in
63�H'g-the-�c�yiitte > Y r
45 English and Spanish.
• , • ORDINANCE NO.
PAGE 8
1 (b) The city shall notify the agency and the employer of the complaint and seek
2 resolution within 21 days from receipt of the complaint form. If resolution is not
3 accomplished, the city shall initiate an investigation and seek legal remedies, if
4 appropriate.
5
6 benefits or adverse chang_ king ^ d_iti_ons) f« lleging noncompliance with th s
� �COiIQI[i�if�� IO[ QIIC�IZIv ZZOSICOTZIZJZZ"LLTiCZ 'Y1LI�LZZZ
7 article-- ^;«er-rt the ge alled taliat_,n i +he __ine manner as the initi .
po -a---
8 (d) The complainant's or witness' identity will not be divulged to the employer
9
10
11 Sec. 10 325. Collective bargaining agreement supersession.
12 All of the provisions of this article, or any part—here f be waived i„ ' bona fide
13 ,
14 agreement in clear and unambiguous terms.
15
16 Sec. 10 326. Expenditures covered by this article.
17 b
18 recipients, service contracts let by its financial assistance recipients of funds entirely
19 ' T b r
20 b
21 other funds.
22
23 Sec. 10 327. Implementing regulations.
24 All implementing rules, regulations, and procedures promulgated by the finance
25 •tm h It b „tea to to city c.unci? for approval not later than August 8,
26 2000.
27
28 Sec. 10 328. Severability.
29 In the event that any pre scion of this article shall be held invalid or unenforceable by any
30 court of competent jurisdiction, such '' ld It .,ot , "liaate nde oH TVSircL.LLle
eabV
31 any other provisions hereof."
32
33 Section 2. That Article XIII. of Chapter 10 of the Omaha Municipal Code, consisting of
34 Sections 10-310 through Section 10-328 as heretofore existing is hereby repealed.
35
• ORDINANCE NO.
PAGE 9
1 Section 3. That this Ordinance shall be in full force and take effect on October 1, 2001.
INTRODUCED BY COUNCILMEMBER
APPROVED BY:
MAYOR OF THE CITY OF OMAHA DATE
PASSED
ATTEST:
CITY CLERK OF THE CITY OF OMAHA DATE
APPROVED AS TO FORM:
-• (?'
CITY ATTORNEY DATE
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REQUEST TO LAW
LAW DEPARTMENT USE ONLY:
.;`.'.;'' ,,G l�, w ,1. LOG BOOK# 196-01 = CITY COUNCIL
TO: Paul D. Kratz, City Atto , -ey{,9, *v .fin DATE ASSIGNED 8/14/01
��\ 4 `: ASSIGNED TO LEE
DATE: August 14, 2001 �`` `• ;,;
S' ;'' ANSWERED/SENT OUT
WITHDRAWN
REQUEST BEING A D E BY: on behalf of Council Vice President Franklin Thompson
Sharon Arnold City Council 5519
(NAME) "�N (DEPARTMENT) (PHONE)
TIME LINE: (Due Date)._August 14, 2001 City Council Meeting
(12 WORKING DAYS FROM DATE RECEIVED BY LAW DEPARTMENT)
REQUEST FOR: Amendment-Living Wage Ordinance
(State Specifically What You Are Requesting)
DETAILS: (Do Not State"See Attached")
Council Vice President Franklin Thompson requests an amendment be prepared to the
attached ordinance for second reading and public hearing on the August 21, 2001 City
Council Agenda. The amendment should delete the living wage, in its entirety, from the
Omaha Municipal Code.
Please contact Lou Andersen(ext. 5518) or Sharon Arnold(ext. 5519) if you have
questions concerning this request.
INFORMATION ATTACHED: YES X NO NONE AVAILABLE
c: Councilmembers, Buster Brown, Stan Timm, Pete Festerson, Council Staff
sja REVISED: 10/96 /i
• '•.QNAi{A..Vp
/.J W
�► ,, Law Department
Omaha/Douglas Civic Center
C® a �
° 1319 famam Street,Suite 304
_.
/91.0" 'OR Omaha. iebraska 63133-0804
(402) 444-5115
1 TED PE9FJ Telefax(402)444-5125
City of Omaha Paul D. Krarz
Mike Fahey,Mayor • Ciry Attorney
•
Honorable President
and Members of the City Council,
The purpose of the attached Ordinance, prepared at the request of the Mayor, is to revise Section
XIII of Chapter 10 .of•the-inaha Municipal Code, the Omaha Living Wage Ordinance, to
exempt the City of Omaha from its provisions and to change the effective date for annual updates
to this wage. The changes are to exempt the City from the provisions of this ordinance and to
change the effective date for annual updates to January l are requested by the Mayor to aid in the
budgeting process.
Your favorable consideration of the attached Ordinance is hereby requested.
Respectfully submitted,
�12' /61/
Rosemarie B. Lee
Assistant City Attorney
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ORDLliANCE NO.
1 AN ORDINANCE to amend Chapter 10, Article XIII., Omaha Living Wage Ordinance, to exempt.
2 the City of Omaha from its provisions; to change the effective date for annual updates to this
3 wage; to repeal Section 10-310, 10-312, 10-313, 10-319, and 10-321 of the Omaha
4 Municipal Code as heretofore existing; and, to provide the effective date hereof.
•
5 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
6 Section' 1. Section 10-310.of the Omaha Municipal Code is hereby amended to read as
7 follows:
8 Sec. 10-310. -FiTrpose and Title.
9
10 • (a) This Article shall be known as the "Omaha Living Wage
11 Ordinance."
12
1=1- (b) The City of Omaha employ:,many individuals, awards many
14 contracts to private firms to provide services to the public and
15 to City Government and provides financial assistance for the
16 purpose of promoting economic development and job growth.
17 Such expenditures of public money are intended to serve a
18 public purpose by creating jobs, expanding the City's
19 economic base, promoting economic security for all citizens,
20 and providing services. Such public expenditures should be
21 spent only with deliberate purpose to promote the creation of
22 jobs that allow citizens to support themselves and their
23 families with dignity. Sub-poverty level wages do not serve
24 the public purpose and place an undue burden on taxpayers
25 and the community which must further subsidize public
26 employers who pay sub-poverty wages by providing their
27 employees health care, housing, nutrition, energy assistance,
28 and other government provided services.
29
30 Section 2. Section 10-312 of the Omaha Municipal Code is hereby amended to read as
31 follows:
CCT
r �
ORDLNTA__iCE NO.
PAGE 2 •
1 Sec. 10-312. Definitions.
7
3 (a) "Agency' means that subordinate or component entity or
4 person of the City (such as a depaihhient, office, or agency)
5 that is responsible for solicitation of proposals or bids and
6 responsible for he administration of service contracts or
7 financial assistance agreements.
8
9 (b) "City" means the City of Omaha and all City agencies,
10 departments and offices.
11
12 (c) "City financial assistance recipient" (CFAR) means any
13 - person t legal entity who received from the City financial
14 assistance in an amount of 375,000 or more in a 12 month
15 period.
16
17 Categories of such financial assistance include, but are not
18 limited to, grants, rent subsidies, financial planning, the sale
19 of land for less than its fair market value, land writedowns,
20 and tax credits. Bond financing and tax increment financing
21 shall not be regarded as financial assistance for purposes of
22 this article. City staff assistance shall not be regarded as
23 financial assistance for purposes of this article. The
24 forgiveness of a loan shall be regarded as financial assistance
25 to the extent of any differential between the amount of the
26 loan and the present value of the payments thereunder,
27 discounted over the life of the loan by the applicable federal
28 rate as used in 26 U.S.C. §§ 1274(d), 7872 (f).
29 .
30 A tenant or leaseholder of a CFAR who occupies property or
31 uses equipment or property that is improved or developed as a
32 result of the assistance awarded to the CFAR and who will
33 employ at least twenty employees on this contract for each
34 working day in each of twenty or more calendar weeks in the
35 twelve months after occupying or using said property,shall be
36 considered a "City financial assistance recipient" for the
37 purposes of this Ordinance and shall be covered for the same
38 period as the CFAR ofwhich they are a tenant or leaseholder.
39
40 (d) "Contractor" means any person that enters into a service
ORDNANCE NO.
PAGE 3
1 contract with the City in an amount equal to or greater than
2 $75,000.00.
3
4 (e) "Employee" means any person who is employed (1) as a
5 service employee of a contractor or subcontractor under the
6 .authority of one or more service contracts and who expends
7 any of his or her time thereon, including but not limited to,
8 hotel employees, restaurant, food service or banquet
9 employees; janitorial employees; security guards; parking
10 attendants; health care employees; gardeners; waste
11 management employees; and clerical employees; or(2) by a
12 CFAR; or (3) by a service contractor of a CFAR and who
13 expends at least half of his or her time on the premises of the
14 •CFAR-and is directly involved with the funded project,
15 program or property which is the subject of city financial
16 assistance; or(4)by the City of Om
17 managerial, supervisor or confidential employee is not an
18 cmploycc for purposes of this definition; (54)any person who
19 is not a principal or independent contractor and expends at
20 last half of his or her time on the contract that qualifies for
21 CFAR.
22
23 (f) "Employer" means any person who is a City financial
24 assistance recipient contractor,or subcontractor,or the City of
25 Omaha.
26
27 (g) "Person" means any individual, proprietorship, partnership,
28 joint venture, corporation, limited liability company, trust,
29 association, or other entity that may employ individuals or
30 enter into contracts.
31
32 (h) "Service contract"means (1) a contract let to a contractor by
33 the City for the furnishing of services, to or for the City,
34 except contracts where services are incidental to the delivery
35 of products, equipment or commodities, and that involves an
36 expenditure equal to or greater than seventy-five thousand
37 dollars ($75,000.00), or (2) a lease or license under which
38 services contracts are let by the lessee or licensee. A contract
39 for the purchase or lease of goods, products, equipment,
40 supplies or other property is not a "service contract" for the
41 . purpose of this definition.
L -
s 1
ORDLNiANCE NO.
PAGE 4
1 (i) "Subcontractor"means any person who enters into a contract
with (1) a contractor to assist the contractor in performing a
3 service contract or (2) a CFAR to assist the recipient in
4 performing the work for which the assistance is being given
5 or to perform services on the property which is the subject of
6 city financial assistance. Service contractors of CFARs shall
7 not be regarded as subcontractors except to the extent
8 provided in Subsection (e)(3).
9
10 (j) "Trainee" means a person enrolled in a job training or job
11 readiness program conducted by an organization whose
12 primary mission is to provide such services.
13
14 Section 3. Section 1�-3 13 of the Omaha Municipal Code is hereby amended to read as
15 follows: •
16 Sec. 10-313. Payment of Minimum Compensation to Employees
17
18 (a) Wages
19
20 Employers shall pay a wage to each employee of no less than -
21 the hourly rates set under the authority of this Ordinance.The
22 initial rate shall be an hourly wage, defined below of at least
23 110% of the federal poverty level for a family of four of the
24 contract that qualifies for CFAR. Except for uncompleted
25 work on contracts previously approved by the City,the hourly
26 wage shall be adjusted on July January 1 of each year
27 subsequent to the issuance of annual updates of the federal
28 poverty level by the United States Department of Commerce,
29 Bureau of the Census.Hourly wages shall be based on a forty-
30 hour (40) hour work week and a fifty-two (52) week year.
31 Employers that provide their full-time employees basic health
32 insurance benefits, as defined in Section 10-313(b) of this
33 chapter,shall pay an initial rate hourly of at least 100%of the
34 federal poverty level for a family of four.
35
36 (b) Basic Health Insurance Benefits
37
38 Health Benefits required by this article shall consist of the
39 payment of at least one dollar and twenty-five cents (31.25)
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ORDNANCE NO.
PAGE 5
1 per hour towards the provision of health care benefits for
2 employees and their dependents. Proof of the provision of
3 such benefits must be submitted by the City to qualify for the
4 wage rate in 10-313(a) for employees with health benefits.
5
6 Section 4. Section 10-319 of the Omaha Municipal Code is hereby amended to read as
7 follows:
8 Sec. 10-319. Exemptions
9
10 (a) An employer shall be exempted from application of this
11 article'if(1) it employs fewer than ten employees for each
12 workirday in each of twenty or more calendar weeks in the
13 current or preceding calendar year; (2) it obtains a waiver as
14 provided herein: or (3) it is an intermediary, such as a
15 community development corporation or community bank,
16 which serves solely as a pass-through agency for the wanting
17 of assistance to the intended employer. '
18
19 (b) A trainee shall be exempted for the period of training of not
20 longer than 90 days in a job readiness or job training program
21 whose primary purpose is to provide such services and for
22 which the financial assistance is intended to support.
'3
24 (c) Nonprofit 501(C)(3) organizations
25
26 (d) per go efameetel—or quasi govefathental--ag reies er
27 political subdivisions rn-ri-1 their Eext budgetary year but not
28 later ',NIB, January 1, 2001. City of Omaha.
29
30 Section 5. Section 10-321 of the Omaha Municipal Code is hereby amended to read as
31 follows:
32 Sec. 10-321. Obligations of Contractors and Financial Assistance
33 Recipients
34
35 (a) All proposed contractors and CFARs subject to the provisions
36 of this Ordinance shall submit a completed Declaration of
37 Compliance form, sided by an authorized representative,
ORDLNANCE NO.
PAGE 6
1 along with each proposal. The completed Declaration of
2 Compliance form shall be made a part of the executed
3 contract and, in addition, copies will be made available for
4 public inspection and copying during its regular business
5 hours.
6
7 (b) Contractors and CFARs shall require their subcontractors and
8 tenants/leaseholders to comply with the provisions of this
9 Ordinance. Language indicating the subcontractor's or
10 tenants/leaseholders ageement to comply shall be included in
11 the contract between the contractor and subcontractor or any
12 agreement between a CFAR and tenants/leaseholders.A copy
13 of such subcontracts or other such agreements shall be
14 :.submit:
s1 to the City.
15
16 (c) Contractors, subcontractors and CFARs shall maintain
17 payrolls for all employers and basic records relating thereto
18 and shall preserve them for a period of three years after
19 termination of their contracts or city financial assistance.
20
21 (d) Contractors, subcontractors and CFARs shall give written
22 notification to each current and new employee, at time ofhire,
23 of his or her rights to receive the benefits under the provisions
24 of this Ordinance. The notification shall be provided in
25 English, Spanish and other languages spoken by a significant
26 number of the employees, and shall be posted prominently in
27 communal areas at the work site. A copy of said notification
28 shall be forwarded to the City which must include the •
29 following:
30 •
31 (1) Minimum compensation — The initial living wage
32 rates of 58.19 per hour with health benefits or 59.01
33 per hour without health benefits will be adjusted
34 annually to correspond to adjustments, if any.Except
35 for uncompleted work on contracts previously
36 approved by the City, the living wage shall be
37 upwardly adjusted each year no later than July on
38 January 1 in proportion to the increase in the federal
39 poverty level calculated by the United States
40 Department of Commerce for the previous year. and
41 •applicable to the City of Omaha.
ORDLNfANCE NO.
PAGE 7
1
2 (2) Health benefits — Proof of the provision of such
3 benefits shall be submitted to the City no later than 30
4 days after execution of the contract to qualify for the
5 wage rate in Section 10-313. Health benefits shall be
6 provided to full-time employees.
7
8 (3) Federal Earned Income Credit (EIC) — Forms to
9 inform employees earning less than [312] pr hour of
10 their possible right to EIC and forms to secure
11 • advance EIC payments from the employer shall be 12 provided to the eligible employees in English,Spanish
13 and other languages spoken by a significant number of
14 - - _ —the employees within 30 days of employment under
15 the subject ageement.
16
17 (e) Contractors,subcontractors and CFARs shall permit access to
18 work sites and relevant payroll records for authorized City
19 representatives for the purpose of monitoring compliance with
20 this Ordinance, investigating employee complaints of non-
21 compliance and evaluating the operation and effects of this
22 ordinance, including the production for inspection and
23 copying of its payroll records for any or all of its employees
24 for the term of the contract or for five years whichever period
25 of compliance is applicable.
26
27 Section 6. Sections 10-310, 10-312, 10-313, 10-319, and 10-321 of the Omaha Municipal
28 Code as existing, are hereby repealed.
29
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THE DAILY�R�ECORD
•
"NOTICE TO PUBLIC" OF OMAHA
The following Ordinance has been set for RONALD A. HENNINGSEN, Publisher
City Council hearing on August 21, 2001,
at 2:00 o'clock p.m., in the Legislative PROOF OF PUBLICATION
Chambers, Omaha/Douglas Civic Center,
1819 Farnam Street, at which hearing all
persons interested,may be heard. UNITED STATES OF AMERICA,
A :Lk ANCE to amend Chapter 10,
Art.!. ha Livia..����age}��Ordinance, The
to A .lit'fhe City: ',47,4r 1a"Ca from its District of Nebraska, ss.
provi.9ions;to.chan•;^.z•i'iitf:: ve date for Cbunty of Douglas.
annual updates, t•: •- , r t, '£•. repeal City of Omaha.
Section 10-310, 15 ,.—'Cs .•
, 'sh: 19 and
10-321 of the Om„}., r.; Code as
heretofore existing; •'. ,,''. 'vide the JOHN P. EGLSAER 1
effective date hereof. -` being dul sworn,
BUSTER BROWN, K Y deposes and says that he is
City Clerk
8-17-01
ADVERTISING MANAGER
of THE DAILY RECORD,of Omaha,a legal newspaper,printed and
published daily in the English language, having a bona tide paid
circulation in Douglas County in excess of 300 copies, printed in
Omaha,in said County of Douglas,for more than fifty-two weeks last
past; that the printed notice hereto attached was published in THE
DAILY RECORD,of Omaha,on
August 17 , 2001
That said Newspaper during that time was regularly published and
in general circulation in the County of Douglas, and State of
Nebraska.•
Publi:,- s t. . ...
A,, •••`�' Rt4!°N./.<`,\.,. ribed In my p nee and sworn to
•* •
i total-11014. .
3" 1 before me this 17th
► day of
i*; COMMISSION' i..`y,4 .... gust 20..01
e EXPIRES a i (�
o V..:.l..l�. .... .. ...
i
I4 t fjq 7•425.2O.CS . i Notary Public
Staten feobr
sty.
1 i .k °F NEIWP '
',A.
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_ THE DAILY RECORD
"NOTICE TO PUBLIC" OF OMAHA
AN ORDINANCE
to
ORDINANE NOpeaSArtiicle XIII 99
of RONALD A. HENNINGSEN,Publisher
Chapter 10, of the Omaha Municipal Code, PROOF OF PUBLICATION
consisting of Sections 10-310 through 1-
0328, pertaining to the Omaha Living Wage
Ordinance; and, to provide for an effective UNITED STATES OF AMERICA,
date.
SUMMARY; The State of Nebraska,
AN ORDINANCE to repeal Article XIII of District of Nebraska, sa.
Chapter 10, of the Omaha Municipal Code, �mtyofDoug�.
consisting of Sections 10-310 through 1- City of Omaha,0328, pertaining to the Omaha Living Wage
Ordinance; and, to provide for an effective
date. JOHN P. EGLSAER
PASSED: August 28, 2001, AS AMENDED 7-
0
being duly sworn,deposes and says that he is
VETOED BY:
MIKE FAHEY
MAYOR OF THE 9/4/01 ADVERTISING MANAGER
CITY OF OMAHA
September 11, 2001 - Motion to
override the Mayor's Veto, Carried 5-2 of THE DAILY RECORD,of Omaha,a legal newspaper,printed and
BUSTER BROWN, published daily in the English language, having a bona fide paid
9-19-01 City Clerk circulation in Douglas County in excess of 300 copies, printed in
Omaha,In said County of Douglas,for more than fifty-two weeks last
past; that the printed notice hereto attached was published in THE
DAILY RECORD,of Omaha,on
September 19, 2001
.
Th:, Ad:Agwspaper during that time was regularly published and
i _�gtal...tiltion in the County of Douglas, and State of
' Publisher' Fee $..LES
• ..
iiu VTR ona'ikib lON...I. p�e �d
It EXPIRE ribed in my P 17 tth sworn to
before me this 1 y h day of
".. • •2•0 ,Q "' Septembe 2 1
94OF•
•NEB��S�
Notary 4 bi
f gins-County-
State of Nebraska