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City of San Leandro <br />Meeting Date: October 20, 2014 <br />Staff Report <br />Agenda Section:File Number:14-436 CONSENT CALENDAR <br />Agenda Number:8.D. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:Rich Pio Roda <br />City Attorney <br />FINANCE REVIEW:Not Applicable <br />TITLE:Staff Report for an Ordinance Amending San Leandro Municipal Code Section <br />1-5-400 to Eliminate Provisions Exempting Certain Public Works Contracts <br />from Payment of Prevailing Wages and to Add a Provision Requiring <br />Compliance with California Labor Code Section 1782 <br />RECOMMENDATIONS <br />Staff recommends that the City Council adopt the attached Ordinance amending San Leandro <br />Municipal Code Section 1-5-400 to eliminate provisions of the municipal code that exempt <br />certain public works contracts from paying prevailing wage and to add a provision requiring <br />compliance with California Labor Code Section 1782. <br />BACKGROUND AND SUMMARY <br />The City’s existing municipal code generally requires payment of prevailing wages for City <br />contracts for the performance of public works in excess of five thousand dollars ($5,000) and <br />for certain contracts between private persons for the performance of construction work. <br />However, the municipal code currently exempts the prevailing wage requirement from <br />contracts on: public works performed by City employees; on maintenance contracts; on <br />private contracts for construction work on property owned by the City and subject to a ground <br />lease in effect prior to the effective date of the prevailing wage provision of the municipal <br />code; for any public work performed following the declaration of an emergency. <br />In 2013, Governor Brown signed Senate Bill 7 into law which added Section 1782 to the <br />California Labor Code. California Labor Code Section 1782 restricts state funding or financial <br />assistance to cities that are not in compliance with California’s prevailing wage laws. <br />Specifically, California Labor Code Section 1782 prohibits charter cities from receiving or <br />using state funding or financial assistance for a construction project unless contractors are <br />required to comply with state law prevailing wage requirements on all City public works <br />contracts. <br />Page 1 City of San Leandro Printed on 10/14/2014