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File Number: 15-347 <br />only if those workers are San Leandro residents and an equal number of union workers are <br />also retained by the contractor. This is known as the “Core Worker” provision. Non-union <br />“core” workers hired under this provision would still be required to register with the union hiring <br />hall and the non-union contractor would be required to pay into the union trust fund, covering <br />health and pension benefits for these workers. <br />In 2014, the City Council adopted a Local Inclusion Policy that gives San Leandro businesses <br />an advantage in competing for City contracts. As discussed at the February 10, 2015 Work <br />Session, some stakeholders raised concerns that the CWA could create challenges for <br />non-union contractors, including some San Leandro businesses. If San Leandro businesses <br />opt not to bid on City projects because of a CWA, they would be unable to realize the benefits <br />of the Local Inclusion Policy, especially the bid preference granted by ordinance. At the <br />February 10, 2015 Work Session, this issue was referred to the City Council Finance <br />Committee for further discussion. <br />Finance Committee Recommendation: At its March 17, 2015 meeting, the Finance Committee <br />indicated that it was comfortable moving forward with the “Core Worker” provision as written. <br />Local Hire and Apprentices: The CWA sets a goal of 30% participation by San Leandro <br />residents in construction projects that are covered by the CWA. Contractors would make good <br />faith efforts to reach this goal through the utilization of the Unions' hiring hall procedures. The <br />agreement also requires contractors to hire one San Leandro resident as a New Apprentice <br />for the first $1 million of the bid amount. Thereafter, for every $5 million of project monies, the <br />contractor would be required to hire one additional New Apprentice. The intent of the clause is <br />to increase pathways for San Leandro residents into the building trades. <br />Funding for Outreach, Implementation, and Oversight: Adoption of a CWA will substantially <br />change certain procedures related to the bidding process, award, and delivery of large <br />construction projects. Accordingly, staff believes that, should the City Council approve the <br />CWA, an outreach process would be necessary to ensure that potential bidders are aware of <br />the new policies and have sufficient information so that they can comply. <br />Additionally, staff costs for implementation will include monitoring payroll and other records to <br />oversee and track the impact of the local hiring goal, staffing a Joint Administrative <br />Committee, updating bid documents, and participating in the resolution of disputes if any <br />should arise. For comparison, the City of Berkeley devotes a significant share of one full-time <br />position in its Health, Housing, and Community Services Department for implementation and <br />monitoring of the program. Berkeley estimates the annual cost to be $61,000. San Leandro <br />does not have a comparable position on staff and will need to determine the most appropriate <br />means of providing these functions. <br />Subsequent City Council Action to Fund Outreach and Implementation: At its meeting on April <br />20, 2015, the City Council adopted Resolution No. 2015-086, appropriating $100,000 in <br />one-time funding for outreach and implementation of a CWA. <br />Effective Date and Term <br />Staff recommends that the CWA, if approved, have an effective date of January 1, 2016 and <br />run for a term of three years. The effective date will allow adequate time to initiate an outreach <br />Page 4 City of San Leandro Printed on 6/9/2015