City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01128 6/25/2024 Discussion Item 20.
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) adopt 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: None
Attachments:
1-Description/Analysis
2-Policy Direction provided by Council (June 18, 2024)
3-Ordinance (redline) -TBD
4-Ordinance (clean) - TBD
Description/Analysis
Issue Detail:
On May 14, 2024, Council directed staff to conduct an analysis of an amendment to the SCC incorporating the requirements of California Labor Code Section 238.5, subsections (c) and (d), concerning wage theft disclosure and liability, requiring contractors to provide a sworn affidavit assuring that the City will not be subject to joint and several liability for unpaid wages, and utilizing the Public Utilities Code prevailing wage for private sector janitors in lieu of the City’s Living Wage Ordinance. Council specified that this language apply to janitorial and security services instead of all
File ID: 2024-01128 6/25/2024 Discussion Item 20.
property services contracts as written in the labor code.
On June 18, 2024, Council directed staff to incorporate revisions to the SCC amendment that are reflected in Attachment 2, and directed staff to bring an Ordinance to Council for approval on June 25, 2024. The Ordinance will protect the City against wage theft liability, ensure that contracts for janitorial and security services (with the exception of emergency security services) are performed by contractors with a collective bargaining agreement or “letter of intent” in place, and will utilize the Public Utility Code prevailing wage for janitorial workers.
Policy Considerations: Council determined it was in the best interest of the City to proceed with Ordinance updates to incorporate these requirements for new, amended, and extended janitorial and security contracts.
Economic Impacts: By incorporating these changes, the City is providing an economic incentive for firms to have collective bargaining agreements with their workers.
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.
Rationale for Recommendation: This item fulfills Council direction to bring this Ordinance for approval.
Financial Considerations: Staff estimates that a requirement for these services to be provided by contractors with collective bargaining agreements in place would increase costs by between $500,000 and $650,000 annually.
Local Business Enterprise (LBE): Not applicable.
Background: None.
Item 33 – Ordinance Amending Section 3.56.070
Relating to Janitorial and Security Guard Services Contracts Proposed Motion:
1. Allow a signed letter of intent OR a collective bargaining agreement:
3.56.070 A. No new, amended or extended 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. or if the contractor provides a signed letter of intent with a union whose collective bargaining agreement includes the required California Labor Code Section 238.5 waiver.
1. If the contractor opts for a letter of intent, that letter shall commit the contractor to honor that regional agreement if awarded the service contract for which they are bidding.
2. Adopt staff recommendation to implement California Labor Code Section 238.5, subdivision (b), as amended:
3.56.070 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 or letter of intent required in subsection (A) to the city if requested.
3. Add language to exempt emergency on-call contracts from the proposed ordinance changes:
3.56.070 A. 2. Contracts for on-call emergency services are exempt from this section.
4. Add language to require contractors to follow the public utilities code prevailing wage for private sector janitors:
3.56.070 D. Any contractor awarded a contract for janitorial services pursuant to this section shall follow the California Public Utilities Code prevailing wage for private sector janitors.
5. Add language to require janitorial contractors pay the top step of the most current prevailing wage determination from the first day of employment:
3.56.070 D. 1. The contractor shall pay employees at the top of the most current prevailing wage determination from the first day of employment under the contract.