HomeMy WebLinkAbout2003-10-28 - AGENDA REPORTS - LABOR COMPLIANCE PGM (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item: 7
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
October 28, 2003
Christopher Price
RESOLUTION AUTHORIZING INSTITUTION OF A LABOR
COMPLIANCE PROGRAM
Transportation and Engineering Services
RECOMMENDED ACTION
City Council adopt a resolution instituting a Labor Compliance Program (LCP); and authorize
the City Manager or designee to execute all documents, subject to City Attorney approval.
BACKGROUND
The Transportation and Engineering Services Department is pursuing a design -build contract for
the Compressed Natural Gas (CNG) Fuel Station at the Transit Maintenance Facility. When
cities seek to use design -build contracts for public works projects, the California Contract Code
20209.7(c) requires cities to establish and enforce a Labor Compliance Program (LCP), as
outlined in the California Labor Code, Section 1771.5. This agenda item seeks City Council
approval of Santa Clarita's LCP. In addition to City Council's approval, the City's LCP shall also
be approved by the California Department of Industrial Relations.
For more than 60 years, the California Labor Code has required that workers employed by
contractors or subcontractors in the execution of public works contracts be paid the
state -determined prevailing wage. The public works chapter of the California Labor Code details
the prevailing wage system, explains whom the law protects, what contractors must do to comply
with the law, what constitutes the prevailing wage, how it is determined, and how the prevailing
wage requirements are enforced.
LCPs effectively shift the enforcement mechanism of the prevailing wage requirements from the
state to the City. This creates local enforcement and relieves the state of the burden of managing
all labor programs involving public works.
Without a Labor Compliance Program, any public works project of $1,000 or more undertaken
by the City must include the payment of prevailing wage rates. With a Labor Compliance
Program in place, the California Labor Code does not require the payment of prevailing wage
rate for public works construction projects of $25,000 or less, or for any alteration, demolition,
repair, or maintenance project of $15,000 or less.
The California Labor Code states that a LCP shall include certain requirements that the City must
meet for public works projects. Many of these requirements are familiar to staff, and include
such elements as:
• Bid invitations and public works contracts shall contain appropriate language concerning the
requirements of the California Labor Code.
• Pre -job conferences shall be conducted with the contractor and subcontractors to discuss
federal and state labor law requirements applicable to the contract.
• Project contractors and subcontractors shall maintain and furnish a certified copy of each
weekly payroll, containing a statement of compliance signed under penalty of perjury.
• The City shall review, and, if appropriate, audit payroll records.
• The City shall withhold contract payments when payroll records are delinquent or inadequate.
The presence of a LCP in Santa Clarita would extend to other public works projects undertaken
by the City. Should staff find any negative impacts to the management of public contracts
utilizing an established LCP, the City has the option to cancel the LCP upon completion of the
CNG design -build contract.
ALTERNATIVE ACTIONS
Other action as determined by the City Council.
FISCAL IMPACT
No fiscal impact by this action. However, any additional administrative hours required in
enforcing the LCP would be an eligible charge to the project.
ATTACHMENTS
Resolution
Labor Compliance Program Report (Available in the City Clerk's Reading File)