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Many City-affiliated projects are also subject to the City's Living Wage Ordinance (San Leandro <br />Municipal Code, Title 1, Article 6) which sets a minimum hourly wage for workers. Generally, <br />state mandated prevailing wage rates exceed the City's living wage, often by a substantial <br />amount. <br />Given the applicability of the prevailing wage and living wage requirements, if the sole or <br />primary purpose of a labor policy is to ensure fair compensation for laborers, new policies may <br />be unnecessary. In these cases, City efforts might be more effectively focused on working with <br />developers, contractors, and trade unions to ensure that applicable laws are being followed. <br />SUMMARY <br />The ultimate goal of a City policy on project labor is to facilitate labor peace and quality working <br />conditions for laborers, while minimizing negative financial impacts to developers that could <br />threaten the viability of development activity. With that goal in mind, staff believes the following <br />are import elements and options to keep in mind: <br />1. A labor policy that articulates City support for fair labor without specific requirements <br />sends a positive message to developers and unions but is nevertheless at risk of being <br />ineffective. If crafted carefully, specific mandates can be imposed to ensure better <br />results, without substantially harming the City's development-friendly culture. <br />2. Requirements imposed on developers may be most effective if made clear as early as <br />possible in the development process, eliminating confusion and uncertainly. Ideally, a <br />labor policy would be adopted through ordinance or resolution and then re-stated in <br />project-specific agreements. RFQs and ENRAs, for example, can detail requirements to <br />meet and/or negotiate with labor. Once project details have been defined, DDAs may <br />outline more specific requirements on a case-by-case basis. <br />3. Requirements to meet with labor, negotiate in good faith, and clearly and publically <br />assess the impacts of a PLA, may be just as effective as a requirement to fully execute a <br />PLA. This type of review could also assess the project's impact on other policy <br />objectives such as economic development, affordable housing and local hiring. This <br />approach provides an option for the project to proceed if negotiations break down, <br />whereas the project might otherwise be canceled. <br />4. Certain types of projects can be considered for exemptions and/or adjusted policies to <br />facilitate other City policy objectives. Affordable housing, for example, is commonly <br />exempted for labor regulations because prevailing wage requirements might make some <br />projects infeasible. Small projects might also qualify for exemptions for the same reason. <br />5. Development of a City labor policy also provides an opportunity to articulate related <br />City objectives. Local sourcing preferences for both labor and materials could be <br />included in a labor policy. A labor policy also provides an opportunity to reaffirm that <br />City's nondiscrimination policies. <br />5 <br />