City of Sunnyvale
Agenda Item
18-1124 Agenda Date: 3/7/2019
2019 COUNCIL STUDY ISSUE
NUMBER
OCM 19-02
TITLE Responsible Construction Ordinance
BACKGROUND
Lead Department: Office of the City Manager
Support Departments: Office of the City Attorney
Community Development
Sponsor(s): Councilmembers Melton, Hendricks, Smith, Klein, Griffith, Larsson, Goldman
History: 1 year ago: N/A
2 years ago: N/A
SCOPE OF THE STUDY
What precipitated this study?
At the November 27, 2018 City Council meeting, Councilmember Melton and the entire Council sponsored a study issue to consider adopting a responsible construction ordinance.
The Director of Santa Clara County for Residents for Responsible Development urged the Council to adopt a responsible construction ordinance. The ordinance would require private developers involved in the construction/alteration and/or demolition work, valued at more than $500,000 in the City of Sunnyvale to file disclosure forms with the City confirming their contractors and subcontractors have no unpaid judgments or outstanding violations. The disclosure forms must include information regarding:
· Unpaid wage judgements
· Citations or penalties imposed by the U.S. Department of Labor, California Department of Industrial Relations, California Labor Commissioner or California Division of Occupational Safety and Health
· Citations for failure to maintain worker’s compensation insurance · Outstanding violations from the Department of Fair Employment and/or the Housing and Equal Employment Opportunity Commission
· Outstanding citations for failure to pay payroll taxes · Outstanding violations relating to human trafficking
What are the key elements of the study?
The study will:
· Define the scope of a responsible construction ordinance · Determine any legal implications/issues of implementing a responsible construction ordinance
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18-1124 Agenda Date: 3/7/2019
for purely private development without City a financial contribution · Review the merits of a responsible construction ordinance and whether one is appropriate for the City of Sunnyvale
· Determine how a responsible construction ordinance would be implemented in the City of Sunnyvale
· Identify additional resources (staff and funds) needed to implement a responsible construction ordinance
· Engage the newly created Santa Clara County Office of Labor Standards and Enforcement (OLSE) to identify other resources for guidance and support in preventing wage theft Estimated years to complete study: 1 year
FISCAL IMPACT
Cost to Conduct Study
Level of staff effort required (opportunity cost): Moderate Funding Required for Non-Budgeted Costs: $25,000
Funding Source: General Fund
Cost to Implement Study Results
Estimated funding needs are for outside legal services to analyze and/or prepare a draft ordinance.
Implementation costs are unknown. Study would include assessment of potential costs, including capital and operating.
EXPECTED CITY COUNCIL, BOARD OR COMMISSION PARTICIPATION Council-Approved Work Plan: No
Council Study Session: Yes
Reviewed by Boards/Commissions: No
STAFF RECOMMENDATION
Support. This policy issue merits discussion at the 2019 Study Issues Workshop.
Per Working Partnerships USA March 2018, Construction Crisis in San Jose: Crisis and Opportunity report, construction is one of the highest-growth industries with potential to produce jobs for working- class residents. Over the next decade, construction jobs in Silicon Valley are projected to increase by
23.7%; almost twice as fast as total employment, which is projected to grow by only 13.5%.
Discussion on additional options to prevent wage theft in the construction industry is timely.
Prepared by: Connie Verceles, Economic Development Manager Reviewed by: John Nagel, City Attorney
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
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