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HomeMy WebLinkAboutResolution No. 2010-62the «y f KENAI, ALASKA ATTEST: Carol L. Freas, City Clerk CITY OF KENAI RESOLUTION NO. 2010 -62 PAT PORTER, MAYOR Suggested by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, QUESTING THE ALASKA LEGISLATURE TO AMEND AS 36.05.070 TO REQUIRE ITTLE DAVIS- BACON ACT COMPLIANCE FOR PUBLIC CONSTRUCTION PROJEC'S IN EXCESS OF $50,000 AND TO PROVIDE A MORE DETAILED DEFINITION OF .INSTRUCTION AND MAINTENANCE. WHEREAS, the Little Davis -Bacon Act (LDBA) was enacted i 1972 with a $2,000 threshold and has not been adjusted for inflation during the subsequent 38 years; and, WHEREAS, public construction projects costing in exc s of 52,000 require payment of LDBA wages, and additional requirements are m. d aced by the Alaska Department of Labor (ADOL); and, WHEREAS, the reporting requirements and fees andated by ADOL are a significant burden to Alaskan small businesses and to the DOL; and, WHEREAS, many small Alaskan businesses oose not to participate in public contracts as a result of LDBA and ADOL reporting and fees; and, WHEREAS, the LDBA and ADOL reporti requirements are burdensome to small municipalities and rural communities; d, WHEREAS, increasing the threshold .r LDBA compliance to 550,000 will increase participation levels of Alaskan small .usinesses in public contracts; and, WHEREAS, the adoption of a higher threshold would be consistent with most other states; and, WHEREAS, there is no clear d:finition for construction contracts and maintenance contracts. NOW, THEREFORE, BE IT 'ESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, the Kenai City C.uncil requests the Alaska Legislature to amend AS 36.05.070 to require Litt. Davis -Bacon Act compliance for public construction projects in excess of S5 000 and to provide a more detailed description of construction and mai enance. PASSED BY THE C• NCIL OF THE CITY OF KENAI, ALASKA, this tenth day of November, 2010. It MEMO T F OM: DATE: the city of/ KE ALASKA SU JECT: Little Davis -Bacon Projects, Initiative to Increase the Minimum Project Value Limit for Projects to $50,000 City Council ick Koch November 3, 2010 The purpose of this correspondence is to request approval from the City Council to submit the attached letter of support from the City Manager to the Alaska Municipal League, requesting the State Legislature increase the threshold requiring payment of Little Davis -Bacon Act wages from $2,000 to $50,000 and eliminate the reporting and fees presently required by the Alaska Department of Labor for public construction projects under $50,000. Attached is the draft letter, a resolution which will be submitted to the Kenai City Council at your regularly scheduled meeting of November 23, 2010, and supporting information. I received this request after the deadline for this Council packet and since the Annual Alaska Municipal League meeting will take place prior to the next meeting I am presenting this request for approval as a lay -down item. Thank you for your attention in this matter. V ile with a Paso Ci with Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907- 283 -7535 FAX: 907 -283 -3014 ilir 1992 he of KENAb ALASKA Kathie Wasserman Alaska Municipal League 217 Second Street, Suite 200 Juneau, Alaska 99801 Dear Ms. Wassermann: Rick R. Koch City Manager with a Futu Viflaye with a Past, Ct 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907- 283 -7535 Fax: 907- 283 -3014 www.ci.kenai.ak.us Subject: Little Davis -Bacon Projects Initiative to Increase the Minimum Project Value Limit for Projects to $50,000 The purpose of this correspondence is to state the City of Kenai's support for an Alaska Municipal League (AML) Resolution which would request the Alaska Legislature amend AS 36.05.070 (Little Davis Bacon Act -LDBA) to increase the minimum project value from $2,000 to in excess of $50,000 prior to requiring LDBA compliance, and to provide a more detailed definition of construction and maintenance. The $2,000 threshold for construction, above which payment of LDBA wages is required, has not been increased since its inception in 1972. Constructions costs have increased many -fold during the past 38 years. The LDBA and requirements mandated by the Alaska Department of Labor discourages participation in public contracts by small Alaskan businesses, and is a burden for small municipalities and rural communities. A threshold of $50,000 would increase participation in public contracting by small Alaskan businesses and provide a more competitive environment for small public contracts. The Kenai City Council will consider a resolution of support on this matter at their November 23, 2010 meeting, a draft is attached. Thank you for your attention in this matter. If you have any questions, please contact me at your convenience. Sincerely, CITY OF KENAI Rick Koch From: Sent: To: Cc: Subject: Attachments: All, My apologies for not keeping you updated on my activities concerning this issue. This change to the LDBA (Little Davis Bacon Act) has been on the AML policy statement for quite sometime and not going anywhere. I have submitted a resolution to AML(attached to this e -mail) to be considered at the November 16th board meeting that would reactivate this issue with the legislature this session. Due to time constraints (AML submission deadlines for resolutions and the KPB Borough Assembly meeting schedules) there was not time to put this resolution in front of the borough assembly and therefore will be considered by the AML board of directors. AML is currently reviewing /rewriting their policy statement as well as defining the top six legislative priorities for this session A resolution or letter of support from your communities goes a long way toward moving this issue forward. If I can answer any questions for you regarding the proposed changes, I can be reached at 252 -4457. Thanks Gary Knopp Subject: Little Davis -Bacon Projects Initiative to increase the minimum limt for projects to $50,000 Date: Wed, 27 Oct 2010 16:48:16 -0800 From: swilcoxeborough.kenai.ak.us To: mavor(almuni.orq; SchubertS@ci.anchoraae.ak.us; poates(ciWofseward.net; wwrede@ci.homer.ak.us; earay(Tmatsugov.us; rkocheci.kenai.ak.us; Isemmens(alci.soldotna.ak.us CC: dcarev(Tborough.kenai.ak.us; CThomnsoneborough .kenai.ak.us; pal2garv©hotmail.com; jblankenship(Thorough. kenai.ak. us Good afternoon all, Gary Knopp [pal2gary @hotmail.com] Saturday, October 30, 2010 10:24 AM swilcox @borough.kenai.ak.us; mayor @muni.org; schuberts @ci.anchorage.ak.us; poates @cityofseward.net; wwrede @ci.homer.ak.us; egray @matsugov.us; Rick Koch; Isemmens@ci.soldotna.ak.us Dave Carey; cthompson @borough.kenai.ak.us; Johni Blankenship RE: Little Davis -Bacon Projects Initiative to increase the minimum limt for projects to $50,000 AMLResolution #2011 -.doc During the legislative session this year in February, we met with Governor Parnell regarding the Little Davis -Bacon Wages. We were directed to work with the law department at that time. We were told that this is a State statute and changes must be made during the legislative session and support for this would be needed, due to the fact that it failed last time is was introduced. So, getting support for passage of this change was paramount. The Kenai Peninsula Borough elected to work with the Alaska Municipal League in getting this language in their 2011 Policy Statement from this organization. We accomplished that during the summer meeting and we are ready to put forward a resolution for support at this time to the Kenai Peninsula Borough Assembly Members and we plan to have this before them at the December 7` Assembly Meeting, During the summer meeting in Kodiak, there was definitely support to move this into the next phase. When we returned from Kodiak, we asked at that time if Mayor Sullivan would be willing to sponsor a resolution of support for this action from his Assembly and he has agreed. Our legal department will be drafting a resolution of support to our legislators to enact this change in the Little Davis -Bacon Wage Act Law, raising the limit from $2,000 to $50,000. If you are interested, I could make sure you get a copy of our draft resolution once it has been completed, just let me know if you would like a copy. Mayor Carey would like to seek your input and support for this change in State Statute regarding the Little Davis -Bacon Wage Act Law. If you are interested and would like to be part of this initiative, we would welcome your support by way of resolution from your legislative governments to support this change. I have attached a copy some information compiled by our Purchasing Director, Mark Fowler, which answers questions and gives an overview of what the Little Davis- Bacon Act is. You can find the AML draft language on page 64 of the 2011 AML Draft Policy Statement, which is available at their website. Let me know if you have any other questions. I look forward to hearing from all of you. Regards, Susan L. Wilcox, Chief of Staff Kenai Peninsula Borough 144 N. Binkley Street Soldotna, AK 99669 Phone: (907)714 -2157 Fax: (907)714 2377 Email: swilcox @borough.kenai.ak.us Visit our website at www.borouqh.kenai.ak.us CONFIDENTIALITY NOTICE: This email, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure, or distribution is prohibited. If you received this email and are not the intended recipient, please inform the sender by email reply and destroy all copies of the original message. 2 A Resolution requesting the Legislature amend. AS 36.05.070 (Little Davis Bacon Act) to require LDBA compliance for public construction projects in excess of 550,000 and to define construction vs maintenance WHEREAS, the AML has supported this change for a considerable amount of time and it is currently listed on the policy statement; and WHEREAS, LDBA was written in 1972 with a $2,000 threshold and has never been adjusted for inflation; and WHEREAS, LDBA is extremel detrimental communities; and WHEREAS, LDBA discourages smaller construction fin is from participating due to the requirements mandated by the Department of Labor and Workforce Development (DOLWD); and WHEREAS, adoption of a higher threshold would be consistent with the experiences of most other states; and NOW, THEREFSRE tE IT RESOLVED THAT the Alaska Municipal League PASSED AND APPROVED BY T E ALASKA MUNICIPAL LEAGUE ON THE DAY OF 2010, Signed: President, Alaska Municipal League Attest: Alaska Municipal League esolution #2011- o small mimic Executive Director, Alaska Municipal League alities and rural Submitted by: Gary Knopp Date Submitted: Oct 22 2010 Contact Name: Contact Phone 907 252 -4457 Implementation Recommendation: Agencies to Contact: Funding Required: Staff/Board/Membership Action: