Agenda - Council Work Session - 07/28/2026

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City of Brooklyn Park Request for Council Action Agenda Item: 7.1 Meeting Date: May 13, 2024 Originating Agenda Section: General Action Items Department: Administration Resolution: N/A Zach Kramka, Asst to the City Ordinance: SECOND READING Prepared By: Manager Attachments: 1 Presented By: Zach Kramka Item: Second Reading of the Prevailing Wage Ordinance City Manager's Proposed Action: MOTION , SECOND , TO WAIVE THE READING AND ADOPT ON SECOND READING ORDINANCE #2024 ADDING CHAPTER 43 TO THE BROOKLYN PARK CITY CODE, TITLE III: ADMINISTRATION, PERTAINING TO PREVAILING WAGE. MOTION , SECOND , TO APPROVE THE SUMMARY OF ORDINANCE #2024- DETERMINING THAT IT CLEARLY INFORMS THE PUBLIC OF THE INTENT AND EFFECT OF THE ORDINANCE. Overview: During its June 5, 2023, work session, the City Council heard from several representatives from local organized labor organizations who underscored the importance of labor protections as a deterrent to wage theft and exploitation of workers. In response to the presentation, Council directed staff to develop a draft prevailing wage ordinance for consideration. On September 5, 2023, staff had a discussion with the City Council regarding a proposed prevailing wage ordinance. After receiving feedback, it was decided to move the ordinance forward to a first reading. On October 23, 2023, the proposed ordinance was passed unanimously on a first reading. The federal government, State of Minnesota, and several local governments across the region have instituted prevailing wage requirements. Prevailing wage levels are defined at the county level by job class. Prevailing wage regulations establish a price floor for wages in addition to fringe benefits that must be paid by contractors and sub -contractors to their employees who are performing work on behalf of the government entity funding the work. The proposed ordinance would require prevailing wage on capital projects financed, in whole or in part, by City and Economic Development Authority (EDA) funds of $50,000 or greater. This ordinance would institute both criminal and civil penalties on covered persons found to be in violation. Any covered persons in violation of the ordinance could be criminally charged with a misdemeanor offense. Civil penalties for violating this ordinance include an order for restitution to be paid, contract payment withholding to satisfy back wages, contract payment delay, withholding a fee equal to five percent of the entire contract price to the City or the EDA as liquidated damages, or the termination of the contract with the violating party. Recommended changes being proposed to the ordinance between the first and second reading are identified below: • Align the City and EDA spending threshold for triggering prevailing wage to $50,000.