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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 P:\Law1\12190z.doc 4.0 c?-tx) . / I(, s Tr/0/ 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 µe a. a 34 i i ; bids ra rcualval vi lv 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 P:\Law1\12250z.doc �� �NtAHA,N�BQ7 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 V )\ , N , a : 'd0 n m l a) tri p n o l o p + Po da c' it ;. . r' u � o % l } 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 P:\Law1\6111pjm.doc 1 rr ? z 1 `� r � C 0 4d5 n a m N o d N...� '1p N o % O p p CN n si O G CD 1 n ro.„, ,,,0 o \ ,..i,,. \ 4:) ,.,-L . ... .?kk 'f- up ' a. �r A 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 ---, c' cr r7 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 P:\Lawl\12250z.doc '1 a II ..t Ah- - '1 , Ki . •-... k .... : IN) c� Ccn ' ' 't t7-- '--v -. \ bs,, . k- . ,) n \ -. td k ' ��4 (-) :8: Su 2 \ . b� ` II x O4. „t, . . ., . . 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 P:\Law I\12190z.doc • • tic KO: tic q 0...,, At. al • .. _...... • 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) • • • 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 0 17 0 -0 .v (D 07 CD Go C s' A 1 a F�1 t n z z 'O 1 l'i O 73 m Z I 1-, z \-J ''\- Z Z � m 1�' _co �° -� o3 oa o eD �% ' . j0 t D • .� (D Q, = 70 so r �C-k L ` `gift •N 1 t ram' 00 lQ OCR co ti, `' o o �• °' �� cn * - C � tinoo � ''� n sflil r• c n ► ca. o o r X `� O O ((DD O 1 • < -rti k ‹., c;\ v,‘. ,,,, ia _ , ... •,. — -,,, 1, ,, ,‘ .. ,.., .. , k_ ._, .....N.N- \.. sk, zt, ri s:„..) % ..,, ,_i',)k, ,X `‘ k 2 Ik. Z - \ )`4 , Ntk.— tzi- k k �� , \ 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. ,_ v _ 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