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File Number: 14-436 <br />Charter cities are not prohibited from receiving state funding or financial assistance where the <br />local prevailing wage ordinance includes requirements that are equal to or greater than state <br />prevailing wage requirements. Additionally, California Labor Code Section 1782 excludes <br />contracts for projects that are twenty five thousand dollars ($25,000) or less for construction <br />work or projects that are fifteen thousand dollars ($15,000) or less for alteration, demolition, <br />repair or maintenance work. <br />The California Department of Industrial Relations is required to maintain a list of charter cities <br />that comply with California Labor Code Section 1782 and are eligible to use state funding or <br />financial assistance for construction projects. Upon adoption of this Ordinance, staff will <br />forward the revised municipal code section to the California Department of Industrial <br />Relations. <br />Staff has indicated that it currently complies with California state law prevailing wage <br />requirements despite the provisions in the municipal code. Thus, staff does not anticipate that <br />the elimination of the exemptions under the existing municipal code and the explicit <br />requirement that the City comply with California Labor Code Section 1782 will have a <br />significant impact. <br />This Ordinance eliminates the provisions of the municipal code that exempt public works <br />projects which are: performed by City employees; for maintenance contracts; for private <br />contracts for construction work on property owned by the City and subject to a ground lease in <br />effect prior to the effective date of the prevailing wage provision of the municipal code; for <br />public works performed following the declaration of an emergency. This Ordinance also <br />amends the municipal code to explicitly require the City to comply with California Labor Code <br />Section 1782 when awarding public works contracts. <br />PREPARED BY: Richard D. Pio Roda, City Attorney, City Attorney’s Office <br />2325101.1 <br />Page 2 City of San Leandro Printed on 10/14/2014