City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01128 6/18/2024 Discussion Item 33.
Ordinance Amending Section 3.56.070, Relating to Janitorial and Security Guard Services Contracts [In Lieu of Pass for Publication Ordinance to be Published in its Entirety] File ID: 2024-01128
Location: Citywide
Recommendation: 1) Pass a Motion pursuant to Rule 13.B.1.b.ii of the Council Rules of Procedure to bypass the Law and Legislation Committee; 2) consideration of an Ordinance amending section
3.56.070 of the Sacramento City Code (SCC), relating to janitorial and security guard services contracts; and 3) publish the ordinance in full in the official newspaper of the City within ten days should the council adopt the ordinance, consistent with City Charter section 32(d).
Contact: Pete Coletto, Finance Director, (916) 808-5416, [email protected]; Dayana Reyes Zanaska, Procurement Manager, (916) 808-5524, [email protected]; Ashley Petralli, Program Manager, (916) 808-5749, [email protected]; Finance Department
Presenter: Dayana Reyes Zanaska, Procurement Manager, (916) 808-5524, [email protected]
Attachments:
1-Description/Analysis
2-Ordinance (redline)
3-Ordinance (clean)
4-California Labor Code 238.5
5-Public Utility Code: Prevailing Wage for Private Sector Janitors 6-2024 Janitorial Living Wage Memo
7-2010 Staff Report to Council - Ordinance Amendment: Living Wage and Prevailing Wage Description/Analysis
Issue Detail: On April 30, 2024, staff brought forward a procurement modernization proposal to the Law & Legislation Committee (Committee) to modernize procurement practices, reorganize and clarify the Procurement sections within SCC, adopt policies that will support local businesses, and increase staff efficiencies by revising procurement thresholds to align with Federal standards and
File ID: 2024-01128 6/18/2024 Discussion Item 33.
similar cities. The Committee advanced the proposal to Council with seven requested amendments.
On May 14, 2024, the revised procurement modernization proposal, adopting five of the seven requested amendments, was approved by Council. One of the requested amendments, suggested by Council Member Valenzuela, that was not incorporated into the original ordinance was to:
Add a new section including language, consistent with Council direction from June 2020 Memorandum: "Property services contractors providing services to the City must comply with the requirements of California Labor Code Section 238.5, subsections (c) and (d), concerning wage theft disclosure and liability, and that all contractors be required to provide a sworn affidavit assuring that the City will not be subject to joint and several liability for unpaid wages." Further in that section, please add that those contractors shall follow the public utilities code prevailing wage for private sector janitors.
Staff did not incorporate that requested amendment into the modernization proposal as staff had concerns about the potential financial impact of this amendment as well as the impact on small and local businesses that contract with the City. The language originally requested would apply to all property services contracts including janitorial, security guards, parking, landscaping, and gardening.
Staff recommended a more thorough analysis of the impact of this policy change be conducted.
At the May 14, 2024, Council meeting, Council directed staff to conduct an analysis of a revised requested amendment, limited to janitorial and security services instead of all property services contracts, and return to Council with the analysis and an Ordinance amendment for Council’s consideration.
Impact of Labor Code 238.5 Compliance
To comply with this labor code provision, only union contractors who already have a collective bargaining agreement with their employees would be able to provide janitorial and security services to the City, and specifically those collective bargaining agreements would need to contain provisions regarding joint and several liability for unpaid wages. This would limit service to a subset of contractors with collective bargaining agreements in place at the time of bidding. This requirement will limit the pool of potential providers for janitorial and security services.
The City currently has four active contracts for security services with three different companies for citywide unarmed security services, armed security services, and on-call high end security services.
Currently, none of the security guards working on these existing contracts are represented by a union and at least one contractor would be unable to bid on future opportunities with the City if Council chooses to adopt the proposed ordinance change. Compliance with Labor Code 238.5 (Attachment 4) would also significantly limit the pool of available high-end security professionals that contractors could pull from for emergency on-call contracts, which are staffed primarily by retired law enforcement officers.
File ID: 2024-01128 6/18/2024 Discussion Item 33.
The City currently has three contracts for janitorial services. One of the three contractors, Lincoln Training Center, which employs adults with disabilities and service-disabled veterans, is not unionized and has no future plans to engage with union representatives. The addition of these requirements to the city code would prevent them from bidding on future contract opportunities with the City. Based on the last two formal solicitations for these services, at least 50% of potential bidders will no longer be able to bid on upcoming janitorial services contracts for the City unless their employees unionize.
Impact of Prevailing Wage
Council expressed concern that janitorial workers were undercompensated and asked staff to update the Ordinance to require that janitorial workers be paid a prevailing wage in accordance with Public Utilities Code section 465 (Attachment 5). As explained below, this change results in a lower wage to workers than that which is required under the City’s living wage ordinance.
The City’s citywide janitorial contracts would not normally be subject to the prevailing wage rate, as the City is not contracting for these services in the capacity of a “public utility.” However, based on Council’s direction, staff performed an analysis of the wages paid under the Public Utility Code prevailing wage for janitors as compared to the City’s Living Wage for janitors, which is the current basis for wage determinations on the City’s janitorial contracts. The City’s Living Wage for janitors includes an hourly rate and a mandated minimum employer contribution for health benefits. The Public Utility Code prevailing wage includes an hourly rate as well as allowances for health benefits, paid holidays, paid vacation, pension, training, and other payments based upon the employee’s length of employment. To compare the two rates, staff has calculated the range of possible hourly benefits paid under the Public Utility Code prevailing wage (the lowest representing new employees, and the highest representing workers who have been employed for six years) and compared the aggregate to the living wage ordinance, which includes an hourly rate as well as a minimum health benefit contribution required upon the first day of employment under a City contract. Below is a comparison of the Public Utility Code prevailing wage for janitors and the City’s Living Wage for janitors:
The City’s Living Wage rate for janitors offers a greater total hourly rate when both the worker’s hourly rate plus total health benefit contributions is considered. Repealing the City’s Living Wage for janitors and utilizing the Public Utility Code prevailing wage rate for this trade would result in an overall reduction in pay to these workers. Staff does not feel that this change is in alignment with
File ID: 2024-01128 6/18/2024 Discussion Item 33.
Council’s desire to ensure adequate compensation for workers and recommends that the City continue paying the Living Wage for janitorial services (Attachment 6). Under the City’s Living Wage ordinance, both the hourly rate for workers as well as the minimum employer contribution increases annually and is based on the Consumer Price Index for all Urban Consumers for the San Francisco- Oakland-Hayward, California and Metropolitan Area. Given this, staff recommends keeping Living Wage provisions for janitorial and security services instead of using the Public Utility Code prevailing wage rate so that existing employees may maintain current pay rates.
Considerations for Janitorial Vacation Entitlement Seniority Council expressed concerns at the May meeting regarding vacation accrual rates and the impacts on janitorial employees when the City’s contracts are awarded to new contractors. By amending the ordinance to require compliance with California Labor Code 238.5, janitorial employees’ accrual rates for vacation time would not be affected (provided the contractors are signatories to the Northern California Maintenance Contractors Agreement). That collective bargaining agreement outlines that vacation and sick leave seniority dates from the prior employer must be honored when contracts are awarded to new contractors and workers are transitioned from one union-represented employer to another.
Policy Considerations: By limiting contracting to firms that have collective bargaining agreements with the provisions set forth in Labor Code 238.5, the City is providing an economic incentive for firms to have collective bargaining agreements with their workers. As explained below, in the financial considerations section, it is expected the City will pay higher prices to procure these services as a result.
Economic Impacts: In addition to financial impacts to the City, the incorporation of the language and the requirements of the California Labor Code being considered would limit competition on janitorial and security contracts to only those contractors with a unionized labor force. Many small and local businesses are not unionized and are unable to afford the costs associated with unionization of employees, thus, would be unable to bid on future opportunities with the City for the provision of these services.
Environmental Considerations:
California Environmental Quality Act (CEQA): This report concerns administrative activities and governmental fiscal activities that do not constitute a “project” as defined by the CEQA Guidelines Sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA (CEQA Guidelines Section 15060(c)(3)).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
File ID: 2024-01128 6/18/2024 Discussion Item 33.
Rationale for Recommendation: The changes to the Procurement Code in this item were requested by Council. Staff recommends Council review the analysis of the impacts of these proposed changes in consideration of a formal policy decision. In addition, staff recommends keeping Living Wage provisions for janitorial and security services instead of using the Public Utility Code prevailing wage rate so that existing employees may maintain current pay rates.
Financial Considerations: The City can expect to pay higher rates for janitorial and security services with the incorporation of the California Labor Code language into the Ordinance. With limited competition, there would be fewer vendors to submit proposals or bids on these services and less competition typically drives higher prices. Staff research has determined that a contract with a union requirement is typically seven percent (7%) higher than a contract without a union requirement.
An analysis of affected janitorial and standard security contracts held by the City estimates that the City’s cost for these services would increase by between $500,000 and $650,000 annually or $2.5 million to $3.35 million over the course of a standard 5-year contract. That annual amount is expected to experience additional increases with the reduction of competition in these categories and the standard increase for cost-of-living year over year.
The City currently utilizes two on-call contracts for high-end and/or armed emergency security services as well. One emergency security contractor will be unable to comply with these new requirements and the other will require advanced notice to staff requests as the pool of security professionals they can enlist for services will be greatly reduced. If a contractor is not available, the City will respond to emergency security situations by staffing them with City Police Officers, the cost of which is 300-400% greater than rate for contracted security officers and also includes indirect operational expenses, potential overtime costs, and reassigning on-duty officers from regular patrols during emergency situations or times of unrest in the City.
Local Business Enterprise (LBE): Not applicable.
Background: On February 26, 2010, Council voted to amend the Ordinance pertaining to the payment of prevailing wages and to establish a single authority for regulating the wage rates and optional health benefit standards for employees of contractors performing services as non- professional services and to extend the 60-day transition employment period for janitors to 90 days.
This established the Living Wage provisions in the Sacramento City Code (SCC) (Attachment 7).
Under California law, Prevailing Wage applies to public works projects, and janitorial contractors and security guards are not subject to prevailing wage models. Prior to the ordinance update in 2010, SCC also applied the payment of prevailing wage to window washers, janitors, and laundry service workers, however, since these services are not outlined in Prevailing Wage rate models, the SCC allowed the City Manager to set the rates for each after a reasonable survey of business establishments performing these services was conducted. The City’s current Living Wage ordinance
File ID: 2024-01128 6/18/2024 Discussion Item 33.
requires a City contractor to provide health benefits or their equivalent in pay, based on a statutorily established hourly wage rate and applies to non-professional services contracts valued at $250,000 or more. In the 2010 report approving this ordinance, staff explained that it was the Council’s desire to ensure access to adequate health care and other employment protections for covered janitorial employees; this was the basis for Council to repeal then-existing prevailing wage requirements for specified services and to instead cover those contractors under the Living Wage ordinance.
1 ORDINANCE NO.
Adopted by the Sacramento City Council
[Date Adopted]
AN ORDINANCE AMENDING SECTION 3.56.070 OF THE SACRAMENTO CITY
CODE, RELATING TO JANITORIAL AND SECURITY-GUARD SERVICES CONTRACTS BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
SECTION 1.
Section 3.56.070 of the Sacramento City Code is hereby amended to read as follows:
3.56.070 Transition employment period for displaced janitors.Janitorial and security- guard services contracts.
A. No contract for janitorial or security-guard services may be awarded by the city to a prospective contractor unless the employees who will provide services under the contract are covered by a collective bargaining agreement that meets the criteria set forth in California Labor Code section 238.5.
B. Before being awarded a city contract for janitorial or security-guard services, the prospective contractor for those services shall—
1. Attest in writing, under penalty of perjury, that the employees who will be working under the contract are covered by a bona fide collective bargaining agreement that meets the criteria set forth in California Labor Code section 238.5, subdivision (b);
2. Attest in writing, under penalty of perjury, that the city, pursuant to the collective bargaining agreement, will not be subject to joint and several liability for unpaid wages owed to employees who will be working under the contract; and
3. Provide a copy of the collective bargaining agreement to the city if requested.
C. The 60-day transition employment period for displaced janitors set forth in California Labor Code section 1061 is extended to 90 days. 1 ORDINANCE NO.
Adopted by the Sacramento City Council
[Date Adopted]
AN ORDINANCE AMENDING SECTION 3.56.070 OF THE SACRAMENTO CITY
CODE, RELATING TO JANITORIAL AND SECURITY-GUARD SERVICES CONTRACTS
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
SECTION 1.
Section 3.56.070 of the Sacramento City Code is hereby amended to read as follows:
3.56.070 Janitorial and security-guard services contracts.
A. No contract for janitorial or security-guard services may be awarded by the city to a prospective contractor unless the employees who will provide services under the contract are covered by a collective bargaining agreement that meets the criteria set forth in California Labor Code section 238.5.
B. Before being awarded a city contract for janitorial or security-guard services, the prospective contractor for those services shall—
1. Attest in writing, under penalty of perjury, that the employees who will be working under the contract are covered by a bona fide collective bargaining agreement that meets the criteria set forth in California Labor Code section 238.5, subdivision (b);
2. Attest in writing, under penalty of perjury, that the city, pursuant to the collective bargaining agreement, will not be subject to joint and several liability for unpaid wages owed to employees who will be working under the contract; and
3. Provide a copy of the collective bargaining agreement to the city if requested.
C. The 60-day transition employment period for displaced janitors set forth in California Labor Code section 1061 is extended to 90 days.
GENERAL PREVAILING WAGE DETERMINATION MADE BY THE DIRECTOR OF INDUSTRIAL RELATIONS PURSUANT TO CALIFORNIA PUBLIC UTILITIES CODE, SECTIONS 465, 466 AND 467
Determination: SAC-2023-1 Reference: 22-1877-2 Issue Date of Determination: December 22, 2023 Supersedes Det: SAC-2022-1
Expiration Date of Determination: April 30, 2024*. Effective until superseded by a new determination issued by the Director of Industrial Relations. Contact the Office of the Director – Research Unit at (415) 703-4774 for the new rates after ten days from the expiration date if no subsequent determination is issued.
Locality: Sacramento County
Craft: Janitor/Cleaner
Wage Rates: Classification Basic Hourly Rate Janitor $16.80
Employer Payments: (Public Utilities Code Section 465)
Health & Welfare: $6.43 per hour after 30 months of service. $2.81 per hour after 12 months of service.
Paid Holidays: Five (5) holidays per year or $0.32 per hour after 60 days of service.
Effective 1/1/2024 Six (6) holidays per year or $0.39 per hour after 60 days of service.
Paid Vacation: Five (5) days after 1 year of service or $0.32 per hour Ten (10) days after 4 years of service or $0.65 per hour Fifteen (15) days after 6 years of service or $0.97 per hour
Pension: $0.16 per hour after 90 days of service.
Training: $0.025 per hour.
Other Payment: $0.05 per hour to Industry Investigation Fund.
Bereavement Leave: Three (3) days paid leave and covers immediate family members (mother, father, spouse, son, daughter, brother, sister, grandmother, grandfather, grandson, granddaughter, and registered domestic partner).
Recognized Holidays: New Year’s Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Any holiday falling on either a Sunday or Monday may be observed either on Sunday or Monday, at the option of the Employer. A holiday falling on a Friday or Saturday may be observed on Friday or Sunday. Effective 2024, add Presidents’ Day.
Straight-time Hours: Eight (8) hours within not more than a period of nine (9) hours shall constitute a day’s work.
Overtime Rate: Time and a half (1½) shall be paid to all employees working in excess of eight (8) hours per day. All work performed over eight (8) hours per day, forty (40) hours per week, on the sixth consecutive day in any work week, shall be paid at the rate of time and one-half (1½) the regular rate of pay. One and one-half (1½) the Basic Hourly Rate shall be paid in addition to regular day’s pay for all work on a holiday.
Travel and Subsistence: Employees required to furnish own vehicle between locations shall be reimbursed at the rate of the standard IRS mileage rate.
Howard Chan City Manager City Hall915 I Street, Fifth FloorSacramento, CA 95814-2604916-808-5704 MEMORANDUM DATE: January 31, 2024 TO: Janitorial Service Contractors FROM: Howard Chan, City Manager SUBJECT: 2024 LIVING WAGE RATES Janitorial Service Contracts The Living Wage Ordinance, City Code Chapter 3.58, provides for the City Manager to determine the appropriate yearly Living Wage rate for employees of City Nonprofessional Services contractors who are covered by the ordinance. The Living Wage rate is based on the San Francisco-Oakland-Hayward, CA. metropolitan area Consumer Price Index for All Urban Consumers (CPI-U) for the end of 2023. The annual CPI-U increase of 2.6% for 2024 is effective as of Sunday, February 25, 2024. Accordingly, the rates have been set as follows: If health benefits are provided is at least $7.47 for each hour of work. Therefore, the living wage rate shall be at least $25.97 per hour (a minimum rate of pay of $18.50 per hour plus a minimum of $7.47 per hour in health benefits). If health benefits are not provided living wage rate shall be at least $18.50 per hour. The Living Wage Ordinance does not apply to covered employees whose terms and conditions of employment are governed by a bona fide collective bargaining agreement containing an express waiver of Chapter 3.58. (Ord. 2003-082) For more information on the Living Wage Ordinance, please refer to the Procurement Services page at https://www.cityofsacramento.org/Finance/Procurement/Contract-Ordinances.
REPORT TO COUNCIL
- City of Sacramento
915 I Street, Sacramento, CA 95814-267.1
CityofSacramento.org
CONSENT
February 16, 2010
Honorable Mayor and
Members of the City Council
Title: Pass for Publication: Ordinance Amendment: Living Wage and Prevailing Wage
Location/Council District: Citywide
Recommendation: 1) Review an Ordinance a) amending City Code section 3.58.030 pertaining to the payment of a living wage and repealing City Code section
3.56.070 pertaining to the payment of prevailing wages, to establish a single authority for regulating the wage rates and optional health benefit standards for employees of contractors performing services classified as non-professional services, and b) adding section 3.56.070 to extend the 60 day transition employment period for janitors set forth in Labor Code §1061 to 90 days; and 2) pass for publication the Ordinance title as required by Sacramento City Charter Section 32(c) to be adopted February 23, 2010.
Contact: Reina J. Schwartz, Director of General Services, 808-7195 Presenter: Christopher Stewart, Procurement Services Manager, 808-6202 Department: General Services
Division: Procurement Services
Organization No: 13001061
Description/Analysis
Issue: On July 21, 2009, City Council rejected all bids for a janitorial services contract. In rejecting all bids, the Council expressed concern that the proposed contract language and the City's existing prevailing wage ordinance lacked provisions to ensure access to adequate health care and other employment protections for covered janitorial employees. In reviewing options relative to this issue, staff reviewed existing ordinances that might affect future contracts, wage rates, health benefits and other employment rights that may be extended to contractor employees performing services classified as non-professional services for the City of Sacramento.
8 PFP: Ordinance Amending City Code Chapters 3.56.070 and 3.58 February 16, 2010 In order to address Council's concerns, staff considered the primary purpose of the living and prevailing wage provisions, similar wage ordinances of other local agencies, the current economic climate, and other relevant data. After reviewing the pertinent information, it appears both sections of the code were intended to improve the wage rates and living standard of workers whom traditionally receive benefits and wages below the local standard.
Though the primary purpose of the two provisions is similar, there are two factors that distinguish the two code sections. First, section 3.58.030 (living wage) requires a city contractor to provide health benefits or their equivalent in pay, based on a statutorily established hourly wage rate. In contrast, section 3.56.070 (prevailing wage) regulates wages only; it does not address benefits. Second, section 3.58.030 (living wage) applies to all occupational classifications defined as non-professional services while section 3.56.070 (prevailing wage) regulates only window washers, janitors and laundry service workers. However, these occupational specialties all fall within the definition of non-professional services for purposes of section 3.58.030.
A survey of several local and State jurisdictions with similar living wage ordinances indicates that the City's existing living wage rate with or without the health benefit provision is reasonable in comparison.
Agency Hourly wage without
health benefit
Hourly wage with
health benefit
Value of hourly
health benefit
City of Berkeley $14.12 $12.11 $2.01
Port of Oakland $12.45 $10.83 $1.62
City of Sacramento $12.25 $10.65 $1.60
Los Angeles County $11.84 $9.64 $2.20
State of CA (DIR) $11.83 $8.50 $3.33
City of San Francisco* $11.54 $2.00
City of San Jose $10.75 $9.50 $1.25
* The health benefit in the City of San Francisco is governed by a healthcare ordinance rather than a living wage ordinance. The health benefit will change to $2,80 per hour on May 10, 2010.
During the past few years, the City of Sacramento has made wage determinations for both the living wage and prevailing wage regulations. Both wage rates were reasonably close. Currently, with the exception of the $13.58 per hour rate for window washers, the rates for all other classifications subject to either regulation have a minimum rate of $12.25 per hour if the employer is not paying for health insurance directly as a benefit. The health care provision of the Living Wage mandates that contractors provide a value equivalent to $1.60 per hour when health benefits are offered as an option.
2 PFP: Ordinance Amending City Code Chapters 3.56.070 and 3.58 February 16, 2010 Staff also considered the option of increasing the current living wage rate.
However, when using the value of $1 per hour as a basis for comparison and evaluation of current living wage contracts, it is estimated that the City's cost for existing contracts would increase over $400,000 annually. While this is an option to consider, it is not financially feasible in our current economic environment.
Based on the forgoing, staff recommends that existing City Code section
3.56.070 (Prevailing Wages for Certain Services) be repealed. This would establish a single authority regulating wage rates and requirements for covered employee health benefits, and reduce confusion.
In addition to recommending repeal of the existing prevailing wage requirements for specified services, staff recommends amending section 3.58.030(A)(3) to revise the time period for advising covered contractors of annual living wage rate changes from January to February. This will allow adequate time to receive, calculate and disseminate Consumer Price Index (CPI) data for future rate determinations; and maintain the existing methodology for calculating the living wage rates, and contributions for health benefits until the economic outlook and financial conditions improve.
Finally, staff recommends adding section 3.56.070 to extend the 60 day transition employment period for janitors set forth in section 1061 of the Labor Code, to a period of 90 days. In general, section 1061 provides for the retention of janitorial employees of a terminated contractor by a successor contractor for a period of 60 days. Adding section 3.56.070 to extend the transition employment period to 90 days would provide increased protection to displaced janitors.
Policy Considerations: The intent of Chapter 3.58 (Living Wage Ordinance) is to improve the circumstances of low wage workers performing non-professional contractual services under city contract. The CPI for All Urban Consumers, San Francisco/Oakland/San Jose area is used to adjust the minimum living wage rate annually. Health benefits are included in this rate. The wage provisions and requirements contained in Section 3.56.070 will be incorporated in Chapter 3.58 and include health benefits.
This recommendation to amend the City Code will not affect the general intent of the current policy contained in Chapter sections 3.56 or 3.58.
Environmental Considerations:
California Environmental Quality Act (CEQA): This report concerns administrative activities that will not have a significant effect on the environment, and does not constitute a "project" as defined by the CEQA Sections 15061(b)(3), and 15378(b)(2).
Sustainability Considerations: None
Committee/Commission Action: This item was heard by the Law and Legislation Committee on February 2, 2010 and is now being forwarded to City Council for approval.
3 PFP: Ordinance Amending City Code Chapters 3.56.070 and 3.58 February 16, 2010 Rationale for Recommendation: The proposed amendment of City Code Section 3.58.030 (living wages) and repeal of section 3.56.070 (prevailing wages) address the Mayor and City Council's desire to ensure that all covered employees performing contractual services classified as non-professional services under city contracts, receive adequate wages relative to occupational classification, regional wages, and health benefits. These recommendations will also diminish the confusion between what is regulated under the living wage and prevailing wage provisions, and minimize staff time required to administer two distinct programs for similar occupational classifications.
If approved, existing contracts will continue to be governed by existing living wage and prevailing wage requirements until such contracts expire or are terminated. Contracts entered into subsequent to the effective date of these revisions will be regulated by the new requirements existing at the time of contract execution. This recommendation is consistent with the intent of the existing Living Wage Ordinance.
The proposed addition of section 3.56.070 to extend the 60 day transition employment period for janitors set forth in Labor Code §1061 to 90 days addresses City Council's recommendation that 60 days is not adequate.
Financial Considerations: There is no change to the existing living wage minimum hourly compensation of $12.25 per hour as a result of this report. Based on this analysis, it would be reasonable to presume that the cost of existing contracts governed under the proposed recommendation would remain unchanged and the merging of two similar regulations will conceivably reduce overall staff time required to monitor non- professional contracts resulting in an indirect cost savings to the City.
Emerging Small Business Development (ESBD): No goods or services are being purchased as a result of this report.
Approved by:
Reiha-J-Schwartz
Director, Department of General Services
Recommendation Approved:
4 PFP: Ordinance Amending City Code Chapters 3.56.070 and 3.58 February 16, 2010 Table of Contents:
Report Pg 1
Attachments:
1 Proposed Ordinance - Red Line Version Pg 6
2 Ordinance Pg 9
5 PFP: Ordinance Amending City Code Chapters 3.56.070 and 3.58 February 16, 2010 Attachment 1
ORDINANCE NO.
Adopted by the Sacramento City Council
Date Adopted
AN ORDINANCE AMENDING SECTION 3.58.030 OF THE SACRAMENTO CITY CODE RELATING TO THE PAYMENT OF A LIVING WAGE; REPEALING SECTION
3.56.070 OF THE SACRAMENTO CITY CODE RELATING TO THE PAYMENT OF PREVAILING WAGES AND ADDING SECTION 3.56.070 TO THE SACRAMENTO
CITY CODE RELATING TO THE EMPLOYMENT TRANSITION PERIOD FOR
DISPLACED JANITORS
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
SECTION 1.
Section 3.58.030 of the Sacramento City Code is amended to read as follows:
3.58.030 Living wage and health benefits.
A. Except as provided in subsection B of this section, a covered employer must pay its covered employees no less than the following rates for all hours worked for the city or while performing under a city contract:
1. If health benefits are provided to covered employees and the covered employer's contribution for the benefits is at least one dollar and fifty cents for each hour the covered employee is.entitled by this chapter to a living wage, then the rates are as follows:
a. During 2007, the greater of ten dollars ($10.00) an hour or nine dollars adjusted by the increase in the Consumer Price Index for all Urban Consumers, San Francisco/Oakland/San Jose area (1982-1984=100) from January 1, 2004, through December 31, 2006.
b. For each year after 2007, the rate shall be based on the rate from the immediately preceding year adjusted by the increase in the Consumer Price Index for all Urban Consumers, San Francisco/Oakland/San Jose area (1982-1984=100) from January 1st through December 31st of the immediately preceding year.
2. If health benefits are not provided to covered employees or if health benefits are provided but the covered employer's contribution for the benefits is less than one dollar and fifty cents for each hour a covered employee is entitled by this chapter to a living wage, then the rates are as follows:
Ordinance No.2010 Adopted on 6
Back to Table of Contents
PFP: Ordinance Amending City Code Chapters 3.56.070 and 3.58 February 16, 2010 a. During 2007, the greater of eleven dollars and fifty cents ($11.50) an hour or ten dollars and fifty cents ($10.50) adjusted by the increase in the Consumer Price Index for all Urban Consumers, San Francisco/Oakland/ San Jose area (1982- 1984=100) from January 1, 2004, through December 31, 2006. b. For each year after 2007, the rate shall be based on the rate from the immediately preceding year adjusted by the increase in the Consumer Price Index for all Urban Consumers, San Francisco/Oakland/San Jose area (1982-1984=100) from January 1st through December 31st of the immediately preceding year.
3. In January February of each year, the city manager shall determine the appropriate rate as practicable. Each city department that has city contracts shall give written notice of the rate so determined to the covered employers.
B. Notwithstanding subsection A of this section, the city council may waive, modify or alter the requirements of this chapter when amending a contract that has a remaining term of ten (10) years or more. (Ord. 2007-087 § 1: Ord. 2003-082 (part)) SECTION 2.
Section3.56.070 of the SacramentoCity Code is repealed.
3.56.070
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Ordinance No.2010 Adopted on 7
PFP: Ordinance Amending City Code Chapters 3.56.070 and 3.58 February 16, 2010 severally liable to the oity in the amount of ten dollars ($10.00) peF dayf0FeaGh IaboFeF or woFk
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Section 3.56.070 is added to read as follows:
3.56.070 Transition employment period for displaced janitors The 60 day transition employment period set forth in section Labor Code section 1061 is extended to 90 days.
Adopted by the City of SacramentoCity Council on by the following vote:
Ayes:
Noes:
Abstain:
Absent:
Attest:
City Clerk
Passed for Publication:
Published:
Effective:
MAYOR
Ordinance No.2010 Adopted on 8
PFP: Ordinance Amending City Code Chapters 3.56.070 and 3.58 February 16, 2010 Attachment 2
ORDINANCE NO.
Adopted by the Sacramento City Council
Date Adopted
AN ORDINANCE AMENDING SECTION 3.58.030 OF THE SACRAMENTO CITY CODE RELATING TO THE PAYMENT OF A LIVING WAGE; REPEALING SECTION
3.56.070 OF THE SACRAMENTO CITY CODE RELATING TO THE PAYMENT OF PREVAILING WAGES AND ADDING SECTION 3.56.070 TO THE SACRAMENTO
CITY CODE RELATING TO THE EMPLOYMENT TRANSITION PERIOD FOR
DISPLACED JANITORS
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
SECTION 1.
Section 3.58.030 of the Sacramento City Code is amended to read as follows:
3.58.030 Living wage and health benefits.
A. Except as provided in subsection B of this section, a covered employer must pay its covered employees no less than the following rates for all hours worked for the city or while performing under a city contract:
1. If health benefits are provided to covered employees and the covered employer's contribution for the benefits is at least one dollar and fifty cents for each hour the covered employee is entitled by this chapter to a living wage, then the rates are as follows:
a. During 2007, the greater of ten dollars ($10.00) an hour or nine dollars adjusted by the increase in the Consumer Price Index for all Urban Consumers, San Francisco/Oakland/San Jose area (1982-1984=100) from January 1, 2004, through December 31, 2006.
b. For each year after 2007, the rate shall be based on the rate from the immediately preceding year adjusted by the increase in the Consumer Price Index for all Urban Consumers, San Francisco/Oakland/San Jose area (1982-1984=100) from January 1st through December 31st of the immediately preceding year.
2. If health benefits are not provided to covered employees or if health benefits are provided but the covered employer's contribution for the benefits is less than one dollar and fifty cents for each hour a covered employee is entitled by this chapter to a living wage, then the rates are as follows:
Ordinance No.2010 Adopted on 9
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PFP: Ordinance Amending City Code Chapters 3.56.070 and 3.58 February 16, 2010 a. During 2007, the greater of eleven dollars and fifty cents ($11.50) an hour or ten dollars and fifty cents ($10.50) adjusted by the increase in the Consumer Price Index for all Urban Consumers, San Francisco/Oakland/ San Jose area (1982- 1984=100) from January 1, 2004, through December 31, 2006. b. For each year after 2007, the rate shall be based on the rate from the immediately preceding year adjusted by the increase in the Consumer Price Index for all Urban Consumers, San Francisco/Oakland/San Jose area (1982-1984=100) from January 1st through December 31st of the immediately preceding year.
3. In February of each year, the city manager shall determine the appropriate rate as practicable. Each city department that has city contracts shall give written notice of the rate so determined to the covered employers.
B. Notwithstanding subsection A of this section, the city council may waive, modify or alter the requirements of this chapter when amending a contract that has a remaining term of ten (10) years or more. (Ord. 2007-087 § 1: Ord. 2003-082 (part)) SECTION 2
Section 3.56.070 of the SacramentoCity Code is repealed.
SECTION 3
Section 3.56.070 is added to read as follows:
3.56.070 Transition Employment Period for Displaced Janitors ,The 60 day transition employment period set forth in section Labor Code section 1061 is extended to 90 days.
Adopted by the City of Sacramento City Council on by the following vote:
Ayes:
Noes:
Abstain:
Absent:
Attest:
MAYOR
Ordinance No.2010 Adopted on 10
PFP: Ordinance Amending City Code Chapters 3.56.070 and 3.58 February 16, 2010 City Clerk
Passed for Publication:
Published:
Effective:
Ordinance No.2010 Adopted on 11