Public Housing Authorities MAINTENANCE PROGRAM UPDATE November 15, 2006 1 HUD REGION VI – FT WORTH Nancy Oakley Labor Relations Specialist ARKANSAS…LOUISIANA…NEW MEXICO…OKLAHOMA…TEXAS OFFICE OF LABOR RELATIONS www.hud.gov/offices/olr Region VI Office 801 Cherry Street Fort Worth,TX 76102 Tel. 817.978.5617 Fax 817.978.5565 Office Jurisdiction Arkansas Louisiana New Mexico OklahomaTexas 3 Office of Labor Relations Staff Jerlinda D. Banks, Labor Relations Officer -----(817) 978-5619 Deborah G. Parker, Secretary------------------------(817) 978-5617 ________________________________________ Labor Relations Specialist(s)/ Territory Covered Nancy L. Oakley ----------(Dallas/Houston east)-(817) 978-5620 Joyce F. Ingram ------(New Mexico/Lubbock/Fort Worth) (817) 978-5622 Tamara Greiner ------------(Oklahoma)--------------(405) 609-8534 Barbara Van Cleve-------(Arkansas)----------------(501)324-5305 Virginia Cockerham ------(Louisiana)--------------(504)589-7204 Karen R. Clark------------(San Antonio)-------------(210) 475-6818 4 PUBLIC HOUSING Orchard Park, Chicago 5 APPLICABILITY FACTORS Public Housing APPLICABILITY FACTORS For properties subject to an Annual Contributions Contract, Construction, rehabilitation, and maintenance work are covered by some type of prevailing wage requirement . . . . 7 APPLICABILITY FACTORS OPERATIONS / DEVELOPMENT • Character of work as ‘operations’ or ‘development’ determines application of either Davis-Bacon or HUD-Determined wage rates • Not tied to a funding source or specific use of funds • Volunteers are exempt 8 APPLICABILITY FACTORS DEVELOPMENT Any contract for loans, contributions, sale, or lease pursuant to this Act....shall also contain a provision that not less than [Davis-Bacon prevailing wages] shall be paid to all laborers and mechanics employed in the development of the project. 9 APPLICABILITY FACTORS OPERATIONS Section 12(a) of the USHA also mandates the payment of HUD-determined prevailing wage rates to all maintenance laborers and mechanics engaged in the operation of PHA low-income projects. 10 APPLICABILITY FACTORS LABOR RELATIONS LETTER LR 2004-01 • Identifies requirements concerning PHA employees or contractors for maintenance work • Payroll, record keeping, deductions, contract clauses, payment frequency 11 OPERATIONS / MAINTENANCE MAINTENANCE work that involves the regular upkeep and preservation of buildings, grounds, and facilities. 12 OPERATIONS / MAINTENANCE MAINTENANCE WAGE RATES • Are determined or adopted by HUD • May be based upon data & recommendation submitted by the PHA • Applicable to all laborers and mechanics engaged in covered work, including force account, contractors, temporary personnel, or residents 13 OPERATIONS / MAINTENANCE DETERMINING WAGE RATES • Adopt Collective Bargaining Agreement • Wage survey • Adopt local government rates • % Increase based on local comparable rates • % Increase based on CPI • Provide other reasoning of prevailing wage rates in locality 14 OPERATIONS / MAINTENANCE POSITION DESCRIPTIONS & JOB COMPARABILITY • PD must reflect current, actual duties • PD comparability with survey, other data • Transmit copy to Labor Relations • Standard / specialty trade classifications • Additional classifications 15 OPERATIONS / MAINTENANCE MAINTENANCE OVERTIME REQUIREMENTS Maintenance employees may receive compensatory time or overtime for hours worked in excess of 40 per week • Labor Relations Letter LR 2004-02, 9/8/04 16 OPERATIONS / MAINTENANCE CONTRACT WORK LR 2004-01 (Rev. 1) • • • • • • Labor standards clauses required in contract Applicable wage decision required in contract Contractor to maintain certain records Records to be made available to PHA/HUD Payrolls not required PHA to perform compliance monitoring 17 OPERATIONS / MAINTENANCE CONTRACT ADMINISTRATION Certain professional services are excluded from HUD-determined wage requirements Periodic inspections or testing of equipment – Testing for lead-based paint – Warranty inspections – Installation, service or maintenance of leased equipment, fixtures or appliances – Inspections, maintenance or service on equipment or fixtures owned by a utility 18 DEVELOPMENT • Reconstruction; • A substantial improvement in the quality or kind of original equipment and materials; • Or remodeling that alters the nature or type of housing units falls within the purview of "development“. 19 DEVELOPMENT WORK CONTRACT REQUIREMENTS • Labor standards clauses: Form HUD-5370 DEVELOPMENT for contracts between $2,000 - $100,000 use 5370 EZ for contracts over $100,000 use 5370 • Davis-Bacon wages, determined by DOL • Applicable to all laborers and mechanics engaged in covered work, including force account, contractors, temporaries, residents 20 NON ROUTINE MAINTENANCE NON-ROUTINE MAINTENANCE Work ordinarily performed regularly to maintain the property, but has become substantial in scope because the work was not completed • Financial considerations • Replacement materials considerations (see 7485.1, Rev.4, Appendix 14) 21 NON ROUTINE MAINTENANCE “CONTINUUM OF SUBSTANTIALITY” Routine--Non-Routine--Development 22 NON ROUTINE MAINTENANCE CONTRACT REQUIREMENTS • Labor standards clauses: Form HUD-5370C • PHA may make amendments consistent with LR2004-01 • HUD-determined wage rates • Applicable to all laborers and mechanics engaged in covered work, including force account, contractors, temporaries, and residents 23 THANK YOU! 24