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Resolution authorizing and directing the Pittsburgh City Controller to perform an audit of the City of Pittsburgh and related intergovernmental authorities’ compliance with the Service Worker Prevailing Wage Ordinance.
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WHEREAS, in 2010, the City of Pittsburgh enacted the Service Worker Prevailing Wage Ordinance to require private development projects subsidized by public monies to pay wage levels that reflect the local wage scale; and,
WHEREAS, development projects covered by this ordinance include (1) those that receive at least $100,000 in public subsidy, (2) commercial office buildings of at least 100,000 square feet or commercial office complexes totaling at least 100,000 square feet, (3) residential buildings of at least 50 units, (4) hotels or motels of at least 100,000 square feet, (5) grocery stores with retail space of at least 30,000 square feet, (6) shopping malls of at least 100,000 square feet, and (7) sports stadiums; and,
WHEREAS, this ordinance was enacted in response to the concern that private developers in the City of Pittsburgh were using public money to underwrite private businesses that were paying wages substantially lower than wages paid in similar non-publicly financed projects in the rest of the City; and,
WHEREAS, the City of Pittsburgh and related intergovernmental authorities do not possess or maintain a comprehensive list of contracts and/or projects covered by this ordinance; and,
WHEREAS, the City of Pittsburgh and related intergovernmental authorities neither inform employers about the requirements of this ordinance nor consistently enforce the payment of prevailing wages to service workers covered by this ordinance; and,
WHEREAS, the City of Pittsburgh and related intergovernmental authorities do not compel covered employers to provide annual payroll data, as required by this ordinance; and,
WHEREAS, the City of Pittsburgh and related intergovernmental authorities do not provide any ongoing reporting on the number of service workers who have benefited from the existence and/or enforcement of this ordinance, and,
WHEREAS, the City of Pittsburgh and related intergovernmental authorities do not track job creation/job quality data for publicly subsidized developments; and,
WHEREAS, in accordance with the Pittsburgh City Code, Title I (Administrative), Article VII (Procedures), Chapter 161 (Contracts): Sections 161.16 and 161.38, and the Davis-Bacon Act, the Controller’s Office is charged with monitoring whether contractors who provide building services and food services to the City of Pittsburgh are paying prevailing wages to service workers employed pursuant to such covered contracts; and,
WHEREAS, in accordance with the aforementioned statutes, the Controller’s Office is also charged with monitoring whether building service, food service, and grocery and hotel employees employed on projects receiving City subsidies are being paid prevailing wages; and,
WHEREAS, prevailing wages for grocery and hotel employees in the City of Pittsburgh have not been updated in years; and,
WHEREAS, the Council of the City of Pittsburgh has grave concerns about the degree and nature of the City of Pittsburgh and related intergovernmental authorities’ compliance with the Service Worker Prevailing Wage Ordinance; and,
WHEREAS, per Article 4, Chapter 404: “Powers and Duties,” Section (c) of the City’s Home Rule Charter, the Pittsburgh City Controller has the authority “to conduct performance audits of all agencies, trusts, council and units of government whenever the Controller decides it is necessary or is directed to conduct such an audit either by the Mayor or by Council, but in any event no less than once every four years.”
Be it resolved by the Council of the City of Pittsburgh as follows:
Section 1: AUDIT.
A. The Pittsburgh City Controller is hereby authorized and instructed to perform an audit of the City of Pittsburgh and related intergovernmental authorities’ compliance with the Service Worker Prevailing Wage Ordinance.
B. The scope of this audit shall be from the effective date of passage of the Service Worker Prevailing Wage Ordinance to the present time.
The City Controller shall present the findings of this audit to the Council of the City of Pittsburgh upon completion.