02-11 Work Session
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
City Council Work Session
February 11, 2020
CALL TO ORDER
The work session was called to order by Mayor Maria Regan Gonzalez at 5:45 p.m. in the
Bartholomew Room.
Council Members Maria Regan Gonzalez, Mayor; Mary Supple; Simon Trautmann;
Present: and Ben Whalen.
Council Members Edwina Garcia
Absent:
Staff Present: Katie Rodriguez, City Manager; Mary Tietjen, City Attorney; Kristin Asher,
Public Works Director; John Stark, Community Development Director; Pam
Dmytrenko, Assistant City Manager; Blanca Martinez Gavina, Executive
Analyst; and Kelly Wynn, Senior Office Assistant
Item #1 PRESENTATION OF PREVAILING WAGES AND LABOR TRAFFICKING
City Manager Rodriguez introduced the item and staff.
Executive Analyst Martinez Gavina gave a description of prevailing wage, current rates and
research done in 2016 by City staff. She included some key points of current research as well as a
study of 140 projects where 122 were using prevailing wage regulations. There was no evidence
found to support the proposition that the absence of prevailing wage regulations attracted more bids.
Executive Analyst Martinez Gavina then listed some concerns of how to enforce prevailing
wage regulations (1) understanding the hours worked by an employee; (2) contractors refusing to pay
fringe benefits; (3) misclassification of employees; and (4) failure to pay overtime rate. She spoke of
most cities do not have the resources or knowledge base to be able to enforce the ordinances.
Executive Analyst Martinez Gavina then gave some enforcement/monitoring practices (1) certified
payroll records; (2) onsite interviews of employees; and (3) inspector check-ins.
Executive Analyst Martinez Gavina stated a recommendation of requiring City projects over
$300,000 are regulated with prevailing wage.
Council Member Whalen asked why is $300,000 the starting point. Director Asher spoke to the
ballpark starting point. There would still be many projects affected but not too many to become
overwhelming while they begin the process.
City Manager Rodriguez added that cities with lower thresholds were not really enforcing and
Richfield would like to enforce the regulations. The City will most likely have to outsource the
enforcement.
Council Work Session -2- February 11, 2020
Council Member Whalen wondered if it is any project or just fully publicly funded projects. City
Manager Rodriguez confirmed it would be City funded projects.
Mayor Regan Gonzalez questioned why other cities were not enforcing these regulations.
Executive Analyst Martinez Gavina explained cities may have the regulations in their contract but are
not tracking them directly.
Mayor Regan Gonzalez also asked if there would be addition legal protection for renters if
developers were accused of not abiding by the regualtions. City Attorney Tietjen confirmed protection
for renters if legal action were to be taken.
Council Member Trautmann wondered if it would be feasible to create an enforcement
prevision to incentivize private attorneys to enforce violations and then attorneys collect the fees from
enforcing a wage violation. City Attorney Tietjen stated they could look into it but usually attorney fees
are contractual.
Council Member Supple believes it is worth having the ordinance to set a standard, even if not
fully enforced.
Mayor Regan Gonzalez asked if there would be a difference in the processing and fees when
working with someone who already includes prevailing wage in their contract versus someone who
does not. Executive Analyst Martinez Gavina stated there would need to be enforcement with any
contractors as well as all subcontractors for the entirety of the project.
Council Member Whalen wondered the City is expected to need another staff person. City
Manager Rodriguez stated it would not be enough work to justify hiring another staff person and
outsourcing the work would be more practical.
Council Member Trautmann asked if it would just be outsourcing the compliance or piece or
shifting in-house contract management to have a general contractor for these projects. City Manager
Rodriguez stated it would depend on the project. Director Asher spoke in that it would be the
compliance piece. Executive Analyst Martinez Gavina believed it would be 10-20 additional hours a
week.
Director Stark spoke on the Redevelopment Contract Agreement to discuss what kind of
controls they would want to have for projects that are not abiding by regulations. He stated they do not
know of anyone that has terminated a project. Director Stark then added what some costs and
limitations might be, including (1) developer unaware of subcontractor and suppliers; (2) staff not
having capacity to conduct site visits; and (3) may set an unrealistic expectation that staff is
monitoring the projects.
Council Member Supple commented on her concern of a developer not knowing of all
subcontractors and suppliers coming into their development. Director Stark explained a developer
versus a contractor knowing due to the volume of employees on a project.
Council Member Whalen echoed his concern but is hoping this would be the change in
enforcing these regulations. He was also concerned about possible punishment to a developer for the
fault of a contractor. Director Stark confirmed that is a possibility but developer may alter the language
in their contracts to protect themselves.
Council Member Trautmann was curious of any potential civil liability for making this item an
ordinance. City Attorney Tietjen replied there would be no liability for adopting the ordinance.
Council Work Session -3- February 11, 2020
Council Member Whalen recognized the representative from the Carpenter’s Union that was
present. He believed it is still worth passing something like this and knowing we have partners in the
community that monitor this problem.
Executive Analyst Martinez Gavina went on to describe prevention of labor trafficking. There is
a state-wide movement to become engaged and an easy way to provide information is signs. She
listed some costs an limitations such as (1) costs for labor trafficking prevention signs; and (2) lack of
resources to investigate human trafficking cases.
Council Member Supple commented as being the Human Rights Commission liaison and how
they would like to be part of the solution and are willing to provide support.
Council Member Trautmann expressed appreciation for bringing this topic into conversation
and wondered if the signs would just be at construction sites or able to proliferate the message.
Executive Analyst Martinez Gavina described how some signs cover multiple forms of labor/human
trafficking. Director Stark explained the inspections division would have to perform a scope and scale
of each project.
Mayor Regan Gonzalez wondered about other types other than signs. Executive Analyst
Martinez Gavina explained the signs are just a first step in labor trafficking prevention. Council
Member Whalen agreed that signs are great but it worth to looking into more options. He also
wondered if the City could require businesses need to have these signs posted. City Attorney Tietjen
stated they could look into the matter but not sure if they could mandate it unless it is required by
some state or federal law.
Council Member Supple asked where the calls would be directed from the signs. Executive
Analyst Martinez Gavina listed a couple options and receiving support from the county.
City Manager Rodriguez stated their research mostly surrounded labor trafficking but they
have found there is a direct relation to metro transit so they would see if it’s possible to place signs at
bus stops and other metro transit areas.
Executive Analyst Martinez Gavina gave a summary of recommendations (1) prevailing wage
requirement on projects over $300,000; (2) redevelopment contractual agreements; and (3) labor
trafficking prevention signs; as well as next steps and suggestions.
Council Member Whalen asked for clarification if the prevailing wage requirement would be
proposed as an ordinance and then come back to Council. City Attorney Tietjen confirmed they are
looking to make an ordinance.
Council Member Supple suggested more research on the feasibility of the redevelopment
agreement provisions. Director Stark believes the HRA would want to include the language on
agreements and contracts.
Council Member Whalen wanted to clarify by researching the feasibility would be to try it in
agreements and contracts. Director Stark confirmed that notion. Council Member Whalen stated his
support in the matter.
Council Member Trautmann thanked staff for all their work and expressed his support in
moving forward.
Mayor Regan Gonzalez stated her support and would like staff to create a baseline of
information to see if the work is effective. She also thanked staff for the presentation.
Council Work Session -4- February 11,2020
City Manager Rodriguez clarified steps moving forward as (1) developing language for an
ordinance of prevailing wage; (2) moving forward with the redevelopment contractual agreement; and
(3) labor trafficking sign distribution.
ADJOURNMENT
The work session was adjourned by unanimous consent at 6:45 p.m.
Date Approved: February 25, 2020
l • 14 , , _
Maria Regan Gonzalez
Mayor
Kelly Wy Katie Rodriguez y
Senior Office Assistant City Manager