HomeMy WebLinkAboutIR 7515 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7515
March 5 , 1991
JI TfR, Page 1 of 4
To the Mayor and Members of the City Council
Subject: CITY OF FORT WORTH PREVAILING WAGE RATES
At the February 12, 1991 City Council Meeting, representatives of the Fort Worth
Building Trades Council appeared to request the City Council update the City's
current prevailing wage rates for building construction trades. The current prevailing
wage rates for building construction trades were adopted by the City Council June
19, 1979, and have not been revised since that date (shown on Attachment A).
The City also has established a separate prevailing wage rate for public works
projects that are related to streets, drainage, and utility construction. These rates
have been revised periodically and correspond to the rates published by the
Association of General Contractors (AGC); the AGC conducts an annual survey
of wage rates paid for highway-heavy construction, paving, and utilities incidental
to general building construction. The most current published rates are dated
November 30, 1990 (shown on Attachment B). These rates are not disputed.
State law requires the City to pay the general prevailing rate of per them wages
for work of a similar character engaged in the construction of public works, exclusive
of maintenance work. The State law requires the City to ascertain the prevailing
rate of per them wages for each craft or type of worker or mechanic needed to
execute public works.contracts; it is mandatory upon the contractor to whom a
contract is awarded, and upon any subcontractor, to pay not less than the said
specified rates in the execution of city-awarded public works contracts.
The City Charter (Chapter XXVII, Section 7 and 8) also includes a requirement for
a prevailing wage:
Standard wages shall be paid for all classes of employment in the services
for the City. Every contract for public work entered into by the City of
Fort Worth shall contain the following provisions: "Contractor hereby
agrees that all persons employed in the performance of this contract shall
be paid standard wages."
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7515
�KRTI March 5 , 1991
j To the Mayor and Members of the City Council Page 2 of 4
is x
Subject: CITY OF FORT WORTH PREVAILING WAGE RATES
The wage rates of City employees are established on the basis of surveys of prevailing
wages paid to workers performing comparable tasks in the relevant labor market.
In addition to state and local statutory requirements, the City must adhere to the
provisions of the federal Davis-Bacon Act on federally-funded projects. Under
Davis-Bacon, the Secretary of Labor predetermines minimum wages for laborers
and mechanics employed by contractors and subcontractors on federal and federally
assisted projects. These wage determinations must include the following specific
benefits: medical or hospital care; pensions; life, disability, sickness, and accident
insurance; vacation and holiday pay; unemployment benefits; and apprenticeship
or similar training programs. Employers must match these benefits for prevailing
area standards, as determined by the Secretary of Labor, or pay their cash equivalent.
In 1979, the City was experiencing very limited bidding competition on construction
0 contracts for three fire stations. Contractors bidding City projects were having
difficulty in obtaining quotations from subcontractors, particularly on smaller
projects. It was believed that the City's building wage rates were a factor in the
lack of bidding competition. The prevailing rates being used prior to June 1979
were based on wages being paid by members of the North Texas Contractors
Association (NCTA); NCTA rates are considered to be the "union scale."
The rates adopted in 1979 were based on a combination of the City of Fort Worth
salary rates and the cost of fringe benefits. At the time, it was noted that approval
of the 1979 rates did not preclude contractors from paying higher rates for building
trades classes. The rates approved were established as minimums. Some 'of the
factors affecting the actual rates paid by contractors are competition, profit factor,
and labor market conditions.
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITN ,;OUNCIL MEMBERS No. 515
March 5 , 1991
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hof fORTRXO
o To the Mayor and Members of the City Council Page 3 of 4
A
V Sr, - -Subject: CITY OF FORT WORTH PREVAILING WAGE RATES
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There are differing views on whether or not there should be a mandated prevailing
wage. However, that question is not at issue since the City Council is mandated
by state and local law to establish a prevailing wage rate for the building construction
crafts and trades. The City Council, in contracts with no federal funding, has broad
discretion in specifying wages to be paid by contractors. The standard wage rate
may be set by the City Council on whatever basis the Council deems appropriate.
Union officials believe that maintaining a low prevailing wage rate results in shoddy
construction and the hiring of unskilled workers. They also point out the current
rate is 50 percent less than some current wages on jobs. The opposing argument
is that high prevailing wage rates add unnecessary costs to projects and result in
high bids on construction projects. This argument also would point out that a lower
rate provides a "floor" and that actual wages are significantly higher than the
published prevailing rate.
Union officials also requested the City Council to require contractors to provide
health insurance to their employees. Although the North Texas Contractors
Association's and the Davis-Bacon rates provide a cash equivalent for benefits, union
officials would prefer actual benefits be provided.
Another issue which may arise is the effect of the prevailing wage rate on the
employment of minority workers. There has been criticism of the Davis-Bacon
Act requirements. A Wall Street Journal (June 25, 1990) article stated, "...that
in practice the Labor Department uses local union wage scales as a proxy for the
prevailing wage." Thus, any laborer who does not have the skills to command union
scale is frozen out of those jobs. Typically, those frozen out are Black or Hispanic."
Attachment C contains the results of our recent survey of prevailing wage rates
as established by several different agencies. Attachment D contains the results
of our recent survey of prevailing fringe benefits rates as established by these same
agencies. Attachment E contains the staff's recommendation for revised prevailing
wage rates based on comparable City jobs plus the cash equivalent for fringe benefits.
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS ---
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7515
March 5 , 1991
OJI T I,,, Page 4 of 4
To the Mayor and Members of the City Council
Subject: CITY OF FORT WORTH PREVAILING WAGE RATES
,a T1
Conclusions/Recommendation:
The current prevailing wage rates for building construction trades/crafts need to
be updated. It is the staff's recommendation that the City Council adopt revised
prevailing wage rates which are based on the City's current salary schedule for
comparable City jobs plus the cash equivalent for fringe benefits. The proposed
rates provide a substantial, but reasonable increase in the prevailing wage rates.
This report has been compiled to give the City Council background information on
the City's prevailing wage rate. Should you have any questions or concerns, please
feel free to contact me.
y
raXt
David Ivory
City Manager
DI:cmj
Attachments
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
CITY OF FORT WORTH
APPROVED STANDARD WAGE RATES
BUILDING CONSTRUCTION RATES
FORT WORTH, TEXAS
JUNE 19, 1979
Recommended
Trade/Craft Standard Rates
1. Bricklayers 6 Stone Masons
Bricklayer $ 8.71
Precast Erector 6.27
Helper/Laborer 5.52
2. Carpenters
Acoustical/Drywall $ 8.27
Finish 8.71
Form 8.27
Rough 7.57
Helper/Laborer 5.07
3. Cement Masons
Finish $ 6.88
Rough/Form Setter 5.50
Helper/Laborer 5.07
4. Electricians
Electrician $ 9.59
Helper/Laborer 5.07
5. Elevator Constructors
Mechanic in Charge $ 8.64
Mechanic 7.25
Helper/Laborer 5.52
6. Floor Covering Workers
Journeyman/Craftsman $ a.71
Helper/Laborer 5.07
7. Glaziers
Journeyman/Craftsman $ 7.25
Helper/Laborer 5.07
8. Insulators/Asbestos Workers
Journeyman/Craftsman $ 6.27
Helper/Laborer 5.07
9. Iron Workers
Structural $ 7.25
Rebar 6.27
Helper/Laborer 5.07
Boilermakers 9.59
Helper/Laborer 5.07
ATTACHMENT A
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Recommended
Trade/Craft Standard Rates
10. Laborers
Skilled $ 5.52
Unskilled 5.07
11. Lathers
Journeyman/Craftsmen $ 7.57
Helper/Laborer 5.52
12. L.W. Concrete Roofdeck Workers
Pumpman $ 6.88
Tankman 5.54
Hoseman 5.54
Finisher 6.88
Laborers 5.07
13. Metal Building Assemblers
Journeyman/Craftsmen $ 7.25
Helper/Laborer 5.07
14. Millwrights
Journeyman/Craftsman $ 7.25
Helper/Laborer 5.07
15. Painters
Craftsmen (brush spray) $ 7.57
Craftsmen (tape 6 float) 8.71
Belpet/Laborer 5.52
16. Plasterers
Journeyman/Craftsmen $ 8.71
Helper/Laborer 5.52
17. Plumbers b Pipefitters
Plumbers $ 9.59
Pipefitter 9.59
Welder 8.71
Helper/Laborer 5.07
Air Conditioning Mechanic 9.59
18. Power Equipment Operators
Operator (Crane, Cherry Picker) $ 7.04
Operator (Tampers, Mixers) 6.08
19. Roofers
Journeyman/Craftsmen $ 8.71
Helper/Laborer 5.07
20. Sheet Metal Workers
Journeyman/Craftsmen $ 8.75
Helper/Laborer 5.07
-6- ATTACHMENT A
Recommended
Trade/Craft Standard Rates
21. Sprinkler Fitters
Journeyman/Craftsmen 9.59
Helper/Laborer 5.07
22. Sound/TV & Alarm
Chief Technician 7.97
Sr. Journeyman/Craftsmen 7.25
Journeyman/Craftsmen 6.27
23. Terrazzo Workers
Journeyman/Craftsmen 8.71
24. Tilesetters
Journeyman/Craftsmen 8.71
A'T'TACHMENT A
CITY OF FORT WORTH, TEXAS
Prevailing Wage Rate for
Streets , Drainage. and Utility Construction
November 30 , 1990
Prevailing Prevailing
Classification Ra&e Classification to
POWER EWIPPOM OPERATORS
Asphalt Heater Operator $10 . 25 Asphalt Distributor $ 8 . 00
Asphalt Raker 8 . 40 Asphalt Paving Machine 9 . 05
Asphalt Shoveler 8 . 00 Broom or Sweeper Oper. 7 . 30
Hatching Plant Weigher 8 . 95 Bulldozer , 150 hp & less 8 . 85
Batterboard Setter 6. 15 Bulldozer, over 150 hp. 9.05
Carpenter 8 . 90 Concrete Paving Curing Mach 8 . 75
Carpenter, Helper 7 . 30 Concrete Pav Finishing Mach 9. 25
Concrete Finisher (Pav) 9. 05 Concrete Paving Form Grader 9. 00
Concrete Finisher Hlpr (Pav) 7 . 85 Concrete Paving Joint Mach 7 . 00
Concrete Finisher (Strs) 8 . 80 Concrete Paving Joint Sealr 6. 85
Concrete Finisher Hlpr(Strs) 7. 20 Concrete Paving Float 8 . 40
Concrete Rubber 7 . 50 Concrete Paving Saw 8 . 95
Electrician 15. 10 Concrete Paving Spreader 9. 35
ObIT,lectrician Helper 10 . 00 Slipform Machine 8 . 00
21agger 5. 65 Crane, Clamshell , Backhole
Form Builder (Strs ) 8 . 50 Derrick, Dragline, Shovel
Form Builder Hlpr (Strs) 7 . 30 ( less than 1 112 cy) 9. 25
Form Liner 8 . 00 Crane, Clamshell , Backhole
Form Setter (Pav & Curb) 8 . 65 Derrick, Dragline , Shovel
Form Setter Hlpr(Pav & Curb) 7 . 90 ( 1 1/2 cy & over) 10 - 40
Form Setter (Strs ) 8 . 40 Crushing or Scrng Plt Opr. 6. 15
Form Setter (Hlpr) (Strs) 6 . 90 Elevating Grader 8 . 30
Laborer, Common 6. 15 Foundation Drill Operator
Laborer, Utility 7 . 55 (Crawler Mounted) 9. 50
Mechanic 10. 85 Foundation ff"I Opelrator
Mechanic Helper 8 . 50 (Truck Mounted) 10. 90
Oiler 8 . 75 Foundation Drill Opr Hlpr 8 . 60
Servicer 7 . 90 Front End Loader
Piledriver 7 . 40 (2 112 cy & less ) 8 . 45
Pipelayer 7 . 75 Front End Loader
Pipelayer Hlpr 6. 40 (over 2 1/2 cy) 9. 35
Blaster 8 . 00 Hoist (Double Drum & Less ) 9. 00
Blaster Helper 7. 75
ATTACHMENT B
-8-
CITY OF FORT WORTH, TEXAS
Prevailing Wage Rate for
Streets , Drainage, and Utility Construction
November 30 , 1990
Prevailing Prevailing
Classification Rate Classification Rate
POWER EQUIPMENT OPERATORS POWER EQUIPMENT OPERATORS CONT.
Mixer ( 16 Cf & Less ) $ 8 . 15 Reinforcing Steel Setter
Mixer (Concrete Paving ) 9. 20 (Paving) $ 9 . 60
Motor Grader Operator Reinforcing Steel Setter
(Fine Grade) 10 . 15 ( Streets ) 10 . 70
Motor Grader Operator 9. 65 Reinforcing Steel Setter
Planer Operator 9 . 10 (Helper ) 8 . 45
Pump Crete 8 . 00 Steel Worker *(Strs ) 9 . 00
Roller Steel Wheel Sign Erector 9 . 45
(Plant Mix Pavement) 8 . 30 Sign Erector Helper 7 . 60
Roller Steel Wheel Spreader Box Operator 8 . 00
%(Other Flat Wheel & Tamping) 8 . 10
oller Pneumatic Truck Drivers
(Self Propelled) 7 . 10
Scrapers ( 17 cy & less ) 7 . 50 Single Axle, Light 7 . 25
Scrapers (over 17 cy) 8 . 35 Single Axle, Heavy 7 . 45
Self Propelled Hammer 7 . 00 Tandem Axle or Semitrailer 7 . 50
Side Boom 6. 70 Lowboy-Float 9. 10
Tractor (Crawler Type) Transit-Mix T. 35
( 150 hp or less) 8 . 50 Winch 7 . 00
Tractor (Crawler Type)
(over 150 hp ) 8 . 50 Vibrator Oper . (Hand type) 7 . 00
Tractor (Pneumatic ) Welder 9 . 05
(80 hp or less ) 7 . 75 Welder Helper 7 . 50
Tractor (Pneumatic)
(over 80 hp ) 7 . 75
Traveling Mixer 7 .60
Trenching Machine, Light 7 .00
ATTACHMENT B
SALARY SURVEY - PREVAILING WAGE RATES IN NORTH TEXAS AREA
Listed below is a description of the various prevailing rates in the Fort Worth and Dallas
area; the actual rates for the various trades/crafts are shown in this Attachment. The
numbers in parentheses correspond to the columns on the attached survey.
(1) Fort Worth (June 1979). This is the current prevailing rate established in June 1979
by the City Council and described previously. Tarrant County also has adopted this
rate as the prevailing wage rate for County public works projects. A fringe benefit
factor based on City benefits, which includes retirement and group insurance, is
calculated and applied to the base rate to produce the final total hourly rate; in 1979,
the fringe benefit factor was calculated as 21.7%.
(2) DFW Board. These rates are used by the Dallas/Fort Worth Airport Board and do not
include fringe benefit costs.
(3) City of Dallas. These rates are used by the City of Dallas and do not include fringe
benefit costs.
(4) Dallas County. These rates are used by the Dallas County and do not include fringe
benefits.
(5) Association of General Contractors (AGC). These rates are based on a survey of
members of the Association of General Contractors. Their survey primarily addresses
"highway heavy" trades and crafts, but does include rates for five (5) of the listed
trades/crafts. The AGC survey does not include fringe benefits information or a cash
equivalent.
(6) North Texas Contractors Association (NTCA). These rates are provided by the North
Texas Contractors Association and are considered to be the "union scale." The NTCA
rates do provide a cash equivalent for fringe benefits and is shown on Attachment D.
(7) Davis-Bacon. The rates under Davis-Bacon were based on a January 1990 survey
conducted by the Department of Labor for the Fort Worth Metropolitan Statistical
Area, which includes Johnson, Parker and Tarrant counties. The survey does include
a cash equivalent for fringe benefits, which is shown on Attachment D. "This survey
indicates that union rates now prevail for bricklayers, electricians, structural
ironworkers, millwrights, and sprinkler fitters. Open shop rates now prevail for the
remaining classifications."
(8) City of Fort Worth (Revised 1991). These rates are based on using the current City
of Fort Worth pay schedule and are an update of the 1979 wage rates. A cash
equivalent for fringe benefits has been computed and is shown on Attachment D.
Wage data from participating governmental entities was averaged and shown under column
(9). The data shown averages the data from DFW Airport Board, the City of Dallas, Dallas
County, and the City of Fort Worth (Revised 1991).
Wage data from participating governmental entities and the wage rates provided by the
Department of Labor, NTCA, and AGC were averaged to provide the rates shown under
column (10).
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ATTACHMENT D
BUILDING & CONSTRUCTION TRADES - STANDARD WAGE RATES
,XRADE/CRAFT BASE FRINGE GROUP TOTAL HR
RATE BENEFIT INSUR RATE
BRICKLAYERS & STONE MASONS
BRICKLAYER 9 . 91 1 . 87 . 70 12 . 48
PRECAST ERECTOR 8 . 14 1 . 54 . 70 10 . 38
HELPER/LABORER 6 . 86 1. 29 . 70 8 . 85
CARPENTERS
ACOUSTICAL/DRYWALL 9. 91 1. 87 . 70 12 . 48
FINISH 11. 47 2 . 16 . 70 14 . 33
FORM 7 . 56 1. 43 . 70 9. 69
ROUGH 7. 56 1. 43 . 70 9. 69
HELPER/LABORER 5. 48 1 .03 . 70 7 . 21
CEMENT MASONS
FINISH 9. 91 1 . 87 . 70 12 . 48
ROUGH/FORM SETTER 5. 48 1. 03 . 70 7 . 21
HELPER/LABORER 6 . 86 1 . 29 . 70 8 . 85
ELECTRICIANS
ELECTRICIAN 12 . 96 2 . 44 . 70 16. 10
HELPER/LABORER 6. 86 1. 29 . 70 8 . 85
ELEVATOR CONSTRUCTORS
MECHANIC-IN-CHARGE 12 .05 2 . 27 . 70 15 . 02
MECHANIC 7 . 56 1. 43 . 70 9 . 69
HELPER/LABORER 6 . 86 1 . 29 . 70 8 . 85
FLOOR COVERING WORKERS
JOURNEYMAN/CRAFTSMAN 8 . 14 1. 54 . 70 10 . 38
HELPER/LABORER 5. 48 1. 03 . 70 7 . 21
GLAZIERS
JOURNEYMAN/CRAFTSMAN 9. 44 1 . 78 . 70 11. 92
HELPER/LABORER 5. 48 1. 03 . 70 7 . 21
INSULATOR/ASBESTOS WORKERS
JOURNEYMAN/CRAFTSMAN 8 . 14 1. 54 . 70 10 . 38
HELPER/LABORER 6 . 86 1. 29 . 70 8 . 85
IRON WORKERS
STRUCTURAL 9. 44 1. 78 . 70 11. 92
REBAR 6. 86 1. 29 . 70 8 . 85
HELPER/LABORER 5. 48 1 . 03 . 70 7 . 21
LABORERS
SKILLED 7 . 57 1. 43 . 70 9. 70
SKILLED 6 . 86 1. 29 . 70 8 . 85
SEMI-SKILLED 5. 48 1. 03 . 70 7 . 21
UNSKILLED 4 . 25 . 80 -. 70 5. 75
eLATHERS
SKILLED 9. 91 1. 87 . 70 12 . 48
UNSKILLED 5. 48 1 . 03 . 70 7 . 21
PERSONNEL 2/26/91
ATTACHMENT E
BUILDING & CONSTRUCTION TRADES - STANDARD WAGE RATES
00*' W. CONCRETE ROOFDECK
PUMPMAN 5 . 48 1. 03 . 70 7 . 21
TANK OPERATOR 4. 25 . 80 . 70 5. 75
ROSEMAN 4 . 25 . 80 . 70 5. 75
FINISHER 5. 48 1 . 03 . 70 7 . 21
LABORERS 4 . 25 1 . 03 . 70 5 . 98
METAL BUILDING ASSEMBLERS
JOURNEYMAN/CRAFTSMAN 5. 48 1 . 03 . 70 7 . 21
HELPER/LABORER 4 . 25 1. 03 . 70 5. 98
MILLWRIGHTS
JOURNEYMAN/CRAFTSMAN 9. 44 1. 78 . 70 11 . 92
HELPER/LABORER 6. 86 1. 29 . 70 8 . 85
PAINTERS
CRAFTSMAN (BRUSH/SPRAY) 11 . 47 2 . 16 . 70 14 . 33
CRAFTSMAN (TAPE/FLOAT) 9. 91 1. 87 . 70 12 . 48
HELPER/LABORER 4 . 25 . 80 . 70 5 . 75
PLASTERERS
JOURNEYMAN/CRAFTSMAN 9 . 91 1 . 87 . 70 12 . 48
HELPER/LABORER 4 . 25 . 80 . 70 5. 75
PLUMBERS & PIPEFITTERS
PLUMBERS 12 . 66 2 . 39 . 70 15. 75
PIPEFITTERS 12 . 66 2 . 39 . 70 15. 75
WELDER 11. 47 2 . 16 . 70 14 . 33
AIR COND. MECHANIC 12 . 66 2 . 39 . 70 15 . 75
HELPER/LABORER 5. 48 1. 03 . 70 7 . 21
POWER EQUIPMENT OPERATORS
- OPERATOR (CRANE, CHERRY 9. 67 1. 82 . 70 12 . 19
PICKER) . 70 . 70
OPERATOR (TAMPERS, 8 . 35 1. 57 . 70 10 . 62
MIXERS) . 70 . 70
ROOFERS
CRAFTSMAN/JOURNEYMAN 11.47 2 . 16 . 70 14 . 33
HELPER/LABORER 5. 48 1. 03 . 70 7. 21
SHEET METAL WORKERS
JOURNEYMAN/CRAFTSMAN 9. 44 1. 78 . 70 11 . 92
HELPER/LABORER 5. 48 1. 03 . 70 7 . 21
SPRINKLER FITTERS
JOURNEYMAN/CRAFTSMAN 10 . 39 1 . 96 . 70 13. 05
HELPER/LABORER 4 . 25 . 80 . 70 5. 75
SOUND/TV & ALARM
CHIEF TECHNICIAN 9. 44 1 . 78 . 70 11. 92
SR. JOURNEYMAN/CRAFTSMAN 8 . 14 1. 54 . 70 10 . 38
JOURNEYMAN/CRAFTSMAN 6. 51 1. 22 . 70 8 . 43
PERSONNEL 2/26/91
ATTACHMENT E
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BUILDING & CONSTRUCTION TRADES STANDARD WAGE RATES
00WERRAZZO WORKERS
JOURNEYMAN/CRAFTSMAN 11 . 47 2 . 16 . 70 14 . 33
TILESETTERS
JOURNEYMAN/CRAFTSMAN 9. 91 1 . 87 . 70 12 . 48
CITY OF FORT WORTH COMPARABLE WAGE RATE MID-POINT OF PAY RANGE
FRINGE BENEFITS AS % OF PAY RANGE
VACATION 3 . 8%
SICK/FAMILY LEAVE 3 . 1%
HOLIDAY 3. 46%
RETIREMENT 11 . 5%
TOTAL 18 . 86%
GROUP INSURANCE - $1, 463 PER YEAR PER EMPLOYEE. THIS COST REPRESENTS
AN ADDED $0 . 70 PER HOUR TO ALL WAGES.
PERSONNEL 2/26/91
ATTACHMENT E
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