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RESOLUTION NO. ______
A RESOLUTION OF THE CITY OF RICHMOND TO ADOPT A LABOR STANDARDS
POLICY FOR CERTAIN CONSTRUCTION PROJECTS
WHEREAS, it furthers the interests of the City of Richmond and the public it serves to ensure that construction projects in the City are built safely, efficiently and timely; and
WHEREAS, the City has a proprietary interest to promote efficient project construction and invest City funds prudently for the construction of local projects, and the timely and successful completion of such projects is of the utmost importance to the City and the general public; and
WHEREAS, the proprietary interests of the City will be advanced by avoiding labor disputes, misunderstandings or grievances on construction projects in the City through access to and use of dispute resolution procedures, thus promoting cost efficient and timely project construction and completion; and
WHEREAS, it is in the interest of the City and the public it serves for proprietary construction projects to proceed without labor disruptions that can cause delay, and to create an effective mechanism to minimize the possibility of any such disruptions, thereby promoting cost containment and timely completion of projects; and
WHEREAS, City objectives on construction projects will be advanced, and the proprietary interests of the City will be protected, by providing a consistent source of skilled construction workers, developing the local pool of available construction workers, requiring contractors to bid on a level playing field, and avoiding labor conflicts; and
WHEREAS, robust labor standards, including those established by project stabilization agreements, advance the aforesaid objectives; and
WHEREAS, the construction industry provides a path to middle-class careers for individuals without advanced degrees or facing barriers to quality employment, and is therefore a crucial component of the effort to build economic opportunities for local residents, local high school graduates, veterans and re-entry populations; and
WHEREAS, establishing a labor standards floor and requiring the use of project stabilization agreements on certain projects will effectuate the City’s objective of completing proprietary construction projects consistent with the goals and purposes set forth above; and WHEREAS, the City seeks to implement labor standards in a manner that both advances high- quality construction jobs and maintains a supportive environment for economic development, housing production, and private investment; and
WHEREAS, it is the intent of the City that the requirements of this Resolution be applied in a manner that is transparent, predictable, and feasible, while continuing to promote equitable access to construction careers for Richmond residents.
NOW THEREFORE BE IT RESOLVED, that the City and all City of Richmond agencies, departments and offices, including the Richmond Housing Authority and the Port of Richmond (“City”) shall require as a term of development agreement, lease or similar agreement governing the following construction projects, whether commercial or residential or otherwise, that the development proponent, together with its contractors, comply with the labor standards set forth in this Resolution (“Affected Projects”):
1. A construction project on public land owned by the City and leased to a tenant where the City’s Valuation of the total project cost exceeds five million dollars ($5,000,000); or
2. A construction project on a parcel sold by the City at below market rate where the City’s Valuation of the total project cost exceeds five million dollars ($5,000,000); or
3. A construction project on a parcel sold by the City where the City and the development proponent is entering into a development agreement or similar agreement and the City’s Valuation of the total project cost exceeds five million dollars ($5,000,000); or
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4. A construction project receiving a City Subsidy(ies) that exceeds five million dollars ($5,000,000), whether the subsidy(ies) is in cash or kind; and
“City’s Valuation” means the estimated hard and soft construction costs accepted by the City during entitlement processing, as adjusted before issuance of building permits.
“City Subsidy” means any financial assistance provided directly by the City to a construction project that reduces the development proponent's project costs, including grants, forgivable loans, direct loans made on below-market terms, cash contributions, below-market conveyances of City-owned real property, infrastructure improvements funded by the City that are provided primarily for the benefit of the project, fee waivers or reimbursements, tax increment assistance, reductions or rebates of City-imposed fees, or other financial assistance having a quantifiable monetary value. The value of a City Subsidy shall be the fair market value of the assistance. "City Subsidy" does not include:
1. Routine municipal services provided generally to the public;
2. Granting regulatory approvals or permits;
3. Expedited permit processing;
4. Utility service provided at generally applicable rates;
5. Tax credits, grants, or incentives provided exclusively by another governmental entity where the City acts as a pass-through and does not contribute any City funds; or
6. Public infrastructure improvements (such as utilities and roadways) that primarily serve the general public rather than a specific development project; and
BE IT FURTHER RESOLVED, that the City shall require as a term of development agreement, lease or similar agreement governing the Affected Projects that the development proponent shall negotiate in good faith with the Contra Costa County Building and Construction Trades Council (“BCTC”); its affiliated unions: Asbestos Workers Local 16, Boilermakers Local 549, Bricklayers Local 3, Cement Masons Local 300, District Council 16 of the International Union of Painters and Allied Trades, Elevator Constructors Local 8, International Brotherhood of Electrical Workers Local 302, Iron Workers Local 378, Northern California District Council of Laborers, Operating Engineers Local 3, Plasterers Local 300, Roofers and Waterproofers Local 81, Sheet Metal Workers Local 104, Sprinklerfitters Local 483, Teamsters Local 315, United Association Local 159, United Association Local 342, and United Association Local 355; and the North Coast States Carpenters Union (“Carpenters”), and enter into a Project Stabilization Agreement (“PSA”) that is substantially consistent with PSAs utilized for similar construction projects in the San Francisco Bay Area. Such agreement shall apply to all work covered under the Master Labor Agreements of the craft unions that execute the PSA (collectively, "Unions").
Good faith negotiations include timely meetings, exchange of written proposals, reasonable consideration of counterproposals, and participation by representatives with authority to negotiate.
BE IT FURTHER RESOLVED, that the development proponent shall contact the BCTC and the Carpenters to commence negotiation of the PSA upon submission of a complete application for an Affected Project, or at such later time as mutually agreed by the parties.
BE IT FURTHER RESOLVED, that such PSA shall provide that (a) all contractors shall recognize the Unions as the exclusive bargaining representatives of the craft workers employed on the project; (b) all contractors shall, as a condition of performing work on the project, be or become signatory to the applicable Master Labor Agreement for the duration of their work on the project, and shall use the hiring halls to satisfy all project craft needs; (c) the wages, benefits and working conditions of craft workers shall be governed by the applicable Master Labor Agreement; (d) all contractors shall employ apprentices indentured in a State-approved joint labor-management apprenticeship training program for the applicable craft or trade, in accordance with the ratios contained in California Labor Code Section 1777.5; (e) there shall be no strikes or lockouts on the project and an expedited dispute resolution mechanism shall govern any conflicts; (f) the “Helmets to Hardhats” program shall be used to assist Veterans in obtaining employment and training opportunities; (g) the contractors are bound by terms that enable and facilitate contractor’s compliance with the City’s local hire and workforce development policies; (h) contractors shall coordinate recruitment and hiring efforts with City-recognized workforce development and pre-apprenticeship programs, including but not limited to RichmondBUILD and YouthBUILD; and (i) contractors shall request dispatch of qualified workers from the union
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hiring halls with priority given to residents of the City of Richmond, including graduates of City- recognized pre-apprenticeship programs such as RichmondBUILD and YouthBUILD.
BE IT FURTHER RESOLVED, that prior to commencement of construction, the development proponent shall submit to the City a Workforce Outreach Plan describing efforts to recruit Richmond residents, graduates of RichmondBUILD and YouthBUILD, veterans, apprenticeship candidates, and other disadvantaged workers, together with outreach efforts directed toward Richmond-based businesses and certified small businesses.
BE IT FURTHER RESOLVED, that prior to commencement of construction of any Affected Project, the City shall call a meeting of the development proponent, prime contractor (and major subcontractors if necessary), the Council and the Carpenters, to participate in a preconstruction compliance meeting with the City to review the labor standards, reporting requirements, workforce goals, and local contracting objectives applicable to the Affected Project.
BE IT FURTHER RESOLVED, that for Affected Projects that are residential developments having between fifty (50) and sixty-nine (69) residential units, the development proponent will not be required to execute a PSA, but will be required to comply with the following labor standards, proof of which shall be certified to the City pursuant to applicable development agreement, lease or similar agreement governing the Affected Project: (a) all construction workers employed in the execution of the project shall be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the California Labor Code, except that apprentices registered in State-approved apprenticeship programs may be paid at least the applicable apprentice prevailing rate; (b) the prevailing wage rate requirement shall be included in all contracts for the performance of craft work; (c) all contractors shall either participate in a State-approved apprenticeship program or request dispatch of apprentices from a State-approved apprenticeship program under the terms and conditions set forth in Section 1777.5 of the California Labor Code; and (d) all contractors shall make health care expenditures for all craft workers in an amount per hour equivalent to at least the hourly pro rata cost of a Covered California Platinum level plan for two 40-year-old adults and two dependents 0 to 14 years of age for the Covered California rating area in which the project is located. A contractor that does not employ construction craft workers shall show a contractual obligation that its subcontractors comply with the requirements of this paragraph. Qualifying expenditures under this provision shall be credited toward compliance with prevailing wage rate requirement in subsection (a) above. A contractor will be deemed in compliance with subsections (c) and (d) above if it is signatory to a valid collective bargaining agreement that requires utilization of registered apprentices and health care expenditures for craft workers and dependents. This paragraph shall be deemed satisfied if the development proponent executes a PSA that is consistent with PSAs for similar projects in the San Francisco Bay Area and that applies to all work covered under the Master Labor Agreements of the craft unions that execute the PSA.
BE IT FURTHER RESOLVED, that for Affected Projects that are residential developments having between eleven (11) and forty-nine (49) residential units, the development proponent will not be required to execute a PSA, but will be required to comply with the following labor standards, proof of which shall be certified to the City as a condition of final approval: (a) all construction workers employed in the execution of the project shall be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the California Labor Code, except that apprentices registered in State-approved apprenticeship programs may be paid at least the applicable apprentice prevailing rate; (b) the prevailing wage rate requirement shall be included in all contracts for the performance of craft work. This paragraph shall be deemed satisfied if the development proponent executes a PSA that is consistent with PSAs for similar projects in the San Francisco Bay Area and that applies to all work covered under the Master Labor Agreements of the craft unions that execute the PSA.
BE IT FURTHER RESOLVED, that on Affected Projects that are not subject to a PSA, a construction worker employed to perform craft work on an Affected Project (“Covered Construction Worker”), or a joint labor-management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. sec. 175a) on a Covered Construction Worker’s behalf, may bring a civil action in a court of competent jurisdiction against the contractor for violating the applicable prevailing wage rate and health care
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expenditure requirements above, and shall be entitled to such legal or equitable relief as may be appropriate to remedy the violation. If the Covered Construction Worker or joint labor- management committee prevails, they shall be awarded reasonable attorneys’ fees and costs.
Nothing in this Resolution creates a private right of action or otherwise authorizes legal action against the City or its officers, agents, or employees for failure to enforce these provisions.
BE IT FURTHER RESOLVED, that on Affected Projects that are residential developments having 50 units or greater, liability under provisions of Sections 218.8 and 218.9 of the California Labor Code will be extended to the development proponent for any debt owed to a wage claimant or third party on the wage claimant’s behalf.
BE IT FURTHER RESOLVED, that the term “Affected Projects” shall not include residential developments having ten (10) or fewer residential units.
BE IT FURTHER RESOLVED, that if the development proponent for an Affected Project is required to execute a PSA, and the Affected Project receives financial assistance from the U.S.
Department of Housing and Urban Development (HUD), or is undertaken by or in partnership with the Richmond Housing Authority or any other entity subject to federal housing regulations, in the event the Affected Project is required to comply with Section 3 of the Housing and Urban Development Act of 1968, as amended, and its implementing regulations at 24 CFR Part 75,the parties to the PSA shall facilitate and ensure compliance, including by implementing the City’s local hire and workforce development requirements in a manner that aligns and complies with Section 3 requirements without conflict.
BE IT FURTHER RESOLVED, that in the event an Affected Project is planned to receive substantial funding from a federal, state, or other public agency that potentially prohibits the application of all or portions of this Resolution to the Affected Project, the development proponent must make reasonable efforts to request leave to comply with this Resolution, including by submitting a request in writing to the funding source and by providing a copy of the request to the Council and the Carpenters. If after such reasonable efforts, the funding source prohibits all or portions of the application of this Resolution, the impacted requirements of this Resolution may be waived by the City Council for the Affected Project.
BE IT FURTHER RESOLVED, that nothing in this Resolution shall be interpreted to conflict with applicable federal or state law, and where such laws apply, including 24 CFR Part 75, the Affected Project shall comply with the most restrictive or controlling requirements while advancing the City’s local hire objectives to the greatest extent feasible.
BE IT FURTHER RESOLVED, that any PSA shall state that in circumstances involving a manufacturer’s warranty or guarantee, or requiring specialized knowledge of a particular item, work may be performed by persons not covered by the PSA provided that the contractor responsible for such work demonstrates by an enumeration of specific tasks that the work cannot be performed by craft workers covered by a PSA. Any such work shall be discussed at the preconstruction compliance meeting convened by the City. The contractor shall give notice to City staff and the relevant Union(s) of such work during PSA negotiations.
BE IT FURTHER RESOLVED, that if the development proponent for an Affected Project is required to execute a PSA, and the development proponent and the BCTC fail to come to an agreement on the terms of a PSA by forty-five (45) calendar days from the date of the final entitlement approval from the City date, then the City Council may determine either (i) that the Community Workforce & Project Stabilization Agreement for the City of Richmond, in a form approved by the City, shall apply to the Affected Project; or (ii) the development proponent must continue to engage with the BCTC and finalize an agreement.
BE IT FURTHER RESOLVED, that the City shall monitor the implementation of this Resolution to evaluate its effectiveness in achieving the following outcomes:
(a) Increased employment of City of Richmond residents on construction projects; (b) Expanded utilization of City-recognized workforce development and pre-apprenticeship programs, including RichmondBUILD and YouthBUILD;
(c) Placement of City of Richmond residents into state-certified apprenticeship programs and construction careers; and
(d) Timely and cost-effective completion of Affected Projects.
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The City Manager, or designee, shall periodically report to the City Council on these outcomes and may recommend adjustments to this policy to ensure alignment with the City’s economic development and workforce goals.
BE IT FURTHER RESOLVED, that this Resolution shall not apply to any project for which the City has executed an Exclusive Negotiating Agreement, Development Agreement, Disposition and Development Agreement, ground lease, or any other project with vested rights with the approved developer prior to the date of adoption of this Resolution.
BE IT FURTHER RESOLVED, that the City Council must approve by majority vote any modifications regarding the terms or applicability of this Resolution.
BE IT FINALLY RESOLVED, that if any provision of this Resolution, or the application thereof to any person or circumstances, is held invalid, the invalidity would not affect other provisions or applications of this Resolution that can remain effective without the invalid provision or application, and to this end the provisions of this Resolution are severable.
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***THE CLERK’S OFFICE WILL COMPLETE THE INFORMATION BELOW****
I certify that the foregoing resolution was passed and adopted by the City Council of the City of Richmond at a regular meeting thereof held on Mmmm dd, yyyy, by the following vote:
AYES: AYES:
NOES:
ABSTENTIONS:
ABSENT:
CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:
Mayor
Approved as to form:
City Attorney
State of California }
County of Contra Costa : ss.
City of Richmond }
I certify that the foregoing is a true copy of Resolution No. _____, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on Mmmm dd, yyyy.
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_______________________________________
Pamela Christian, Clerk of the City of Richmond