0077

County of Santa CruzGENERAL SERVICES DEPARTMENT

701 OCEAN STREET, SUITE 330. SANTA CRUZ, CA 95060-073

(831)4542210 FAX: (831)4542710 TDD: (831)4542123

NANCY GORDON, DIRECTOR

May 8,2013 Agenda: May 21, 2013

Board of SupervisorsCounty of Santa Cruz701 Ocean StreetSanta Cruz, CA 95060

LIVING WAGE PROGRAM - ANNUAL REPORT AND CONSIDERATIONOF LIVING WAGE INCREASE AND PROPOSED ORDINANCE CHANGES

Dear Members of the Board:

Effective January 11, 2002, your Board adopted the Living Wage program for private sectoremployers (Ordinance 4646; County Code Chapter 2.122). The General Services Departmenthas been the lead County agency in administering and overseeing the Living Wage Program,with the assistance of County Counsel, the County Administrative Ofce, and Countydepartments.

This report addresses three areas: (1) the annual report on the status of the private sectorprogram; (2) consideration of an increase to the living wage as addressed in the ordinance; and(3) proposed changes to the definition of "covered employee" to align with the definitions of thecities of Watsonvile and Santa Cruz.

Background

Section 2.122.110 of the Living Wage Ordinance requires an annual report be provided to theBoard of Supervisors on the status of the living wage program containing a summary ofactivities conducted by General Services, including statistical information, certification process,cost impact and contract monitoring (Attachment A).

Section 2.122. 020 (b) of the Ordinance stipulates that the living wage paid to coveredemployees shall be set by resolution of the Board after consideration of the annual cost of livingincrease as measured by the San Francisco-Oakland-San Jose area Consumer Price Index(CPI) by the percent change for the period from October to October. This section goes on torequire that the Chairperson of the Board, or designee, meet with representatives appointed byeach of the other jurisdictions in Santa Cruz County to recommend a uniform Living Wage indexbased on the CPI.

Living Wage ordinances have ben adopted by the County of Santa Cruz, the City of SantaCruz, and Watsonvile. The intention of the County's Ordinance was to promote a uniform wagerate among the participating local jurisdictions, and initially the Living Wage jurisdictions in theCounty utilized a uniform living wage rate. However, the Santa Cruz City Ordinance requires

~z

Board Agenda: May 21,2013Living Wage Annual Report

0078

the Living Wage to be increased by the amount of the annual CPI index. The ordinancesadopted by Watsonvile and the County allow more flexibility in adopting the wage rate, whichhas resulted in the diferent rates among the three jurisdictions.

In February 2013, the City of Santa Cruz approved an increase to the rate effective July 1,2013. The City of Watsonvile has informed County staff that they wil not support increasing theLiving Wage rate in 2013-14, but may consider bringing their Living Wage rate in line with theother jurisdictions in the future. It should be noted that this is the fourth year that Watsonvilehas declined an increase in the Living Wage rate.

County Rate Change Recommendation

The recommended Cost of Living Adjustment (COLA) increase for the October to Octoberperiod from the prior year is 3.7% (Attachment B). General Services staff is recommending thatyour Board adopt the attached resolution (Attachment C) adjusting the County living wage rateby the identified 3.7% COLA. This adjustment wil increase the living wage paid to coveredemployees receiving benefits as descrbed in the ordinance from $14.26 per hour to $14.79 perhour, and from $15.55 per hour to $16.13 per hour if employer benefits are not provided. Staffis recommending that the increase be effective July 1, 2013 for consistency with the ordinance'spurpose and the rate adopted by the City of Santa Cruz.

Ten Year Program Review

Over the past year, staff conducted a Ten Year Review of the Ordinance. We are pleased toreport to your Board that overall the Living Wage Ordinance had been generally succssful, withfew problems. On an annual basis, General Services staff spends a minimum of 250 workhours associated with setting up the Living Wage database, including mailng out forms,tracking compliance statements and entering Living Wage applicable purchase orders andcontracts on a daily basis. These due dilgence efforts include minimally 50 hours of recertifyingapplicable vendors, checking payroll of all covered employees and preparing the informationalreports for your Board and the City Selec Committee, We are pleased to report that nosignificant issues or problems have been identified over the past ten years. Consequently, in FY2013/14 staff will implement a self certification process of compliance for participatingcontractors, similar to the process used by the cities.

Inconsistencies among the various local annual living Wage rates and ordinances wereidentified during the review process. As mentioned earlier in this letter, both the City and theCounty of Santa Cruz have continued with the increased rates based on CPI changes. The cityof Watsonvile has not implemented any Living Wage rate increases over the past four years(Attachment D). Additionally. staff determined that the County Ordinance's definition of"covered employee" differed from that of both of the cities of Watsonvile and Santa Cruz. TheCounty's definition was much broader in that all employees of a contractor, including those notspecifically working on the contracted County work, must be paid the current Living Wage rateor better. The two cities' respective ordinances limited the "covered employee" definition tothose contractor employees directly working on city contracted services, not all employees, Indiscussion with labor representatives, it has been determined that the initial intent of the livingWage Coalition ten years ago in establishing the ordinances was the definition of "coveredemployees" as utilized by the cities. Also another noted difference between the ordinances isthat city of Santa Cruz allows for employer exemptions for workers under the age of seventeen.Staff recommends changing the existing County ordinance to the same covered employeedefinition and age exemption under California's child labor protection law to bring more

21

Board Agenda: May 21,2013Living Wage Annual Report

0079

consistency to the Living Wage program among the local jurisdictions as originally envisionedand intended.

General Services proposes changing Section 2.122.30 Defnitions (E) "Covered employee" tothose persons hired by contractors or subcontractors to work on county contracts on a full-time,part-time, temporary, seasonal or regular basis for wages or salary. Other minor changeseliminate reference to the former Redevelopment Agency (Section 2.122.030 (F), update of jobtitles (Sections 2.122.030 (F) and 2.122.050 (F)) and additional language pertaining toCalifornia's child labor protection law (Section 2.122.030 (F).

A clean and strikeout version of the proposed ordinance changes are attached (Attachment E).

It is therefore RECOMMENDED that your Board take the following actions:

1. Accept and file the Annual Report on the status of the private sector living wage program;

2. Adopt the resolution setting the living wage at $14.79 per hour for those employees receivingbenefits and at $16.13 per hour for those employees not receiving benefits, efective July 1,2013;

3. Schedule a public hearing on June 11, 2013 at 9:00 am or thereafter to consider adoption ofan ordinance amending Santa Cruz County Code Chapter 2.122.030 (E) changing the definitionof "covered employee"; 2.122.030 (F) removing reference to the former Redevelopment Agencyand adding language pertaining to California's child labor protection law; and 2.122.030 (F) and2.122.050 (F) updating a job title; and

4. Direct the Clerk of the Board to advertise a Notice of Public Hearing once a week for twoweeks prior to the hearing in a newspaper of general circulation.

Very truly yours,

~Director,

S IAN A. MAURIELLOCounty Administrative Officer

NCG/aa

Attchments:A - Living Wage Annual Report,a - October 2012 Consumer Price IndicesC - Resolution for Living Wage rate increase in FY 2013/14o - Ten Year Table of Local Living Wage RatesE - Propose ordinance changes (clean and strikeout)

cc; County CounselAll Departent HeadsCity Manager Carlos Palacios, City of WatsonvileCity Manager Martin Bernal, Cit of Santa Cruz

~2

0080 Attachment A

County of Santa CruzGENERAL SERVICES DEPARTMENT

701 OCEAN STREET, SUITE 330, SANTA CRUZ, CA 95060-4073

(831) 454-2210 FAX: (831) 454-2710 Too: (831) 454-2123

NANCY GORDON, DIRECTOR

Fiscal Year 2012/13 Living Wage Annual Status Report(Completed April 22, 2013)

Overview:

During the current fiscal year, General Services' staff conducted the following Living Wageactivities:

. Reviewed all FY 2012/13 County services contracts.

. Implemented an adjustment approved by resolution as required by the Ordinance toprovide for a 3.6% wage increase, effective July 1, 2012.

. Revised all Living Wage certification and informational documents and intranet

information to reflect the increase in the Ordinance, effective July 1, 2012.. Established a new Living Wage database for FY 12/13.

. Assisted departments in obtaining new Living Wage Compliance Statements from

service providers for FY 12/13.. Reviewed incoming departmental requisitions for qualified services on a daily basis

and updated Living Wage database as Purchase Orders were established.. Reviewed weekly Board of Supervisor Agendas for qualifying contracts and

continuing annual agreements and updated database weekly.. Reviewed all Section i - Continuing Contracts for qualified services and acquired

compliance forms from Contractors required to comply with the Living WageOrdinance.

. Audited the payroll of all non-exempt service providers covered under the Ordinance

providing qualified services to the County in excess of $15,000.. Recertified exempt service vendors providing qualified services to the County in

excess of $15,000.. Surveyed all non-compliant vendors as to why they did not meet Living Wage

requirements.

Current Statistics (July 1,2012 through April 3, 2013):

General Services logs all Living Wage covered services, even if the service provider has lessthan the $15,000 threshold cumulative value of all contracts. Exempt service providers includethose with less than six employees or who have collective bargaining agreements in place orproviders granted an exemption by the Board of Supervisors.

As service providers reach the $10,000 threshold, staff begins the certification process bymailing compliance forms to the vendor.

There are currently 301 vendors providing services to the County of Santa Cruz in the coveredservice categories. Of these vendors, 40 have contracts with a cumulative value of over$15,000; 20 vendors that have certified compliance and 20 claiming exempt status for the entire

21

0081 Attachment A

fiscal year. Of these exempt providers, 15 have less than 6 affected employees and 5 havecollective bargaining agreements. Of the 20 vendors that have certified compliance, the LivingWage Ordinance covers a total of 283 employees. The following chart breaks out by coveredservice category the 40 service providers with contracts in excess of the $15,000 threshold.

Automotive repair and maintenanceDocument DestructionEquipment maintenance

Facility and building maintenanceJanitorial and custodialLandscapingSecurityTransportation and shuttleWaste Management/recycling

Total

* 6 vendors provide more than one service

Total42

1452423

1046*

Certified21

92o21

3222

Exempt21

53221

o8

24

In addition to the above data, 37 vendors have been certified to be in compliance with the livingwage requirements and another 34 vendors are exempt. Of the 37 vendors that have certifiedcompliance, the Living Wage Ordinance covers approximately 1,225 employees. The balanceof the vendors providing Living Wage covered services did not provide services in excess of$10,000 and therefore were not required to submit a Living Wage Compliance form thatcontained the number of employees.

The following chart provides the service category detail for the 301 vendors providing a livingwage covered service including those that have not reached the $15,000 threshold.

COVERED SERVICESAutomotive repair and maintenanceDisposal and Recycling Services

Equipment maintenance

Facility and building maintenanceFurniture moving and installationJanitorial and custodialLandscaping & Tree ServiceLaundryOffice and clericalPest Control

Recreation Services

SecurityTowingTransportation and shutte

Total

* 22 vendors provide more than one service

4823

13446

31217

334258

1.

323*

222

0082 Attachment A

Living Wage Certification Process for FY 2012/13

During FY 12/13, service providers were notified of changes in the Ordinance that raised thehourly wage rate from $13.76 per hour to $14.36 per hour with benefits and $15.01 to $15.55per hour without benefits.

The process of renewing certifications at the new wage rates consists of notifying serviceproviders of the change in the Ordinance, summarizing the changes and obtaining new LivingWage Compliance Statements from all service providers previously certified and any newservice providers identified as providing qualified services defined in the Ordinance.

As in prior years, General Services' staff monitors all new incoming requisitions for purchaseorders for continuing and new service requests from departments on a daily basis to identifypotential living wage vendors. In addition, staff monitors continuing contract agreements,previously approved by the Board during Budget hearings, and new service agreementssubmitted by departments for Board approval during the year. County Counsel and the CountyAdministrative Office also review services contracts over $15,000 for compliance with theprogram.

All information is logged on the General Services Living Wage database to ensure compliancewith the Ordinance, once the aggregate value of various County agreements with a particularvendor reaches $15,000.

This same database is available on the General Services intranet website along with theOrdinance, an Ordinance summary, and the Living Wage Compliance Statement to assistdepartments by giving them immediate access to Living Wage information to help them in theircontract negotiations and in the certification of service providers.

In some instances, service providers fail to comply with the Ordinance. Once the $15,000 levelis approached, staff notifies the provider to rectify the circumstances or General Servicesprovides departments with the names of alternate service providers who are in compliance withthe Ordinance.

Contractor Monitoring:

As authorized in the Ordinance under section 2.122.120 Third Tier Review, General Services'staff has reviewed certified payroll submitted by the 20 vendors certifying compliance andproviding services to the County in excess of $15,000. Three additional covered vendorsrefused to participate in the Living Wage Program; consequently, staff has capped theirbusiness to $15,000 and is monitoring their contracts to confirm the ordinance is not violated.The 20 vendors with spend over $15,000 and claiming exempt status have submitted currentcompliance forms to confirm their exempt status.

Cost Impact:

General Services surveyed all vendors in compliance with the Living Wage Ordinance withcontracts for services exceeding $15,000. Vendors were asked if compliance with the CountyOrdinance has had an impact on their business and/or the cost of doing business with theCounty. Out of the 20 returned surveys, two vendors stated that there had been an impact byimposing the Living Wage Ordinance. However, this number excludes all those non compliantvendors who no longer qualified for business with the County over $15,000 and were asked to

12 3

0083 Attachment A

indicate their reasons on a separate survey. Eight vendors were asked to participate, andseven responded with a completed survey. All indicated that the local economy did not sustainthe increase in costs resulting from the County Living Wage rates.

General Services performed a cost comparison study of selected vendors covered under theOrdinance. There were noted price increases from fiscal year 11/12, which appeared in linewith the Cost Price Index, increased energy costs, and the Living Wage Ordinance. Nodecreases in costs were found.

Living Wage Countywide:

Staff contacted the Cities of Santa Cruz and Watsonville to confirm their participation in the nextfiscal year Living Wage increase. The City of Santa Cruz has raised their rates for the nextfiscal year 13/14 by 3.7% at their February 12, 2013 Council Meeting. In the previous threeyears, the City of Watsonville froze their rates at the FY 08/09 leveL. The City of Watsonvilleintends has scheduled their Living Wage rates discussion for their May 14, 2013 City CouncilMeeting. General Services' staff is proposing that the new County Living Wage rate for FY13/14 increase by the 3.7% CPI, continuing to match that of the approved City of Santa Cruzrate.

During this past year, the City Select Committee addressed the growing gap in the localagencies' Living Wage (LW) rates. Staff understands that the City of Santa Cruz offered toaddress changing their LW Ordinance to allow for more flexibility in the future by holding therate increases in certain economic times, instead of being tied to all CPI increases stated in theshared CPI index. This action has not yet taken place but is expected to occur during the FY13/14.

Living Wage Ordinance Ten Year Review:

Since the Living Wage Ordinance has been in effect since January 11, 2002, staff performed aten year review of the Living Wage and polled the participating Local Vendors as to the effectsthis Ordinance has had on their business. Over the past years, the Living Wage Ordinance hasbeen very successfuL. Not once had a vendor requested an official exemption. Overall, effortsproved there were increased wages for those who were required to receive Living Wage rates.In the last year, an increase number of non-compliant vendors appeared which may be a resultof the current economic environment. Under the ten year review, staff surveyed these vendorsto determine the nature of non-compliance. Eleven vendors were identified as non-compliant;two proved to be compliant, two vendors reside outside the County and had an exempt numberof employees living and working in the County and one declined to participate. The remainingsix vendors responded overwhelmingly that the economy and the number of unskilled workersneeded to provide their services would provide a financial hardship to their business.

Business ServiceAuto RepairFurniture movingLaundry

Nos.41

1

Service provider

Car wash serviceUnskilled workersPart time workers

No. Not Paid LW43

811

All the above businesses reside within the County of Santa Cruz and therefore are required topay .ê their employees the current Living Wage rates to be compliant with the CountyOrdinance. All Living Wage covered businesses that reside outside the County but provideLiving Wage services to the County are only required to pay those employees who live and work

421

0084 Attachment A

within the County of Santa Cruz the Living Wage Rate. The vendors above stated that thisappears to be unfair competition and ultimately hurts local businesses. It appears to be time toaddress certain issues within the Ordinance that have become a burden to the local vendors.

Upon researching the two cities' Living Wage Ordinances, staff found a discrepancy among thedefinitions of covered employees. Watsonville and Santa Cruz only require those coveredemployees to be working on their city contracts. All other local employees are not affected bythe Living Wage requirements.

A meeting was held on April 18, 2013 including the Committee for the Alliance for a Living Wageand a representative from the City of Santa Cruz. The Alliance claimed that it was never theirintention to maintain Living Wage rates for any local businesses' entire employee pool but onlyfor those employees that were assigned to County or city projects.

Ten Year Review Suggested Changes to the Ordinance

. Continue next fiscal year to match the Living Wage rate with that of the City of SantaCruz

. Match the County's definition of 'covered employees' to that of both the cities of SantaCruz and Watsonville

. Change the certification process to be one of self certification and abbreviate the annualdetail reporting to the Board on the Living Wage

Living Wage for Nonprofit Agencies:

Effective July 1, 2003 the Living Wage Ordinance was amended to include specific living wagerequirements for nonprofit service providers. The Human Services Department (HSD) monitorsall nonprofit contractors covered by the Living Wage Ordinance. General Services has includedliving wage information for nonprofits on the General Services' intranet site. This site allowsinformation and certification forms regarding compliance with the Santa Cruz County LivingWage Ordinance to be readily available to County staff.

Due to HSD budget constraints, Living Wage reporting for nonprofit agencies has beensuspended for the past several years and during FY 12/13. However, nonprofit agencies werestill required to submit self-certification forms to HSD indicating if all of their workers were paid aliving wage. Nonprofit agencies with workers earning less than the county's living wagestandard were not required to submit wage data reports to the County for 12/13.

Conclusions:

. In FY 12/13, the County increased the hourly wage rate for the Living Wage program

by the allowed Consumer Price Index continuing common wage requirements withthe City of Santa Cruz. The City of Watsonville held their rates the same as FY08/09.

. The Living Wage database continues to be effective in monitoring the cumulativevalue of vendor contracts toward the $15,000 threshold called for in the Ordinance.Logging of in-coming requisitions requires daily review and data entry, which is beingdone by General Services' staff.

21 5

0085

Attachment A

. The findings from the payroll and certification audit conducted by General Services'

staff demonstrate that the self-certification procedure is a valid method of compliancecertification.

. Implementation of the Living Wage Ordinance this year has had some impact on

vendors providing services to the County. With the current economic downturn,increased wages impact vendors' bottom line. Complaints were consistent withyears past, however more non-compliant vendors surfaced. These vendors could nolonger do business with the County in excess of $15,000.

. Watsonville's April 23, 2012 Council Meeting decision to continue their Living Wage

rate at the 2008/09 level continues to reduce continuity in maintaining a county-widesustainable wage. Staff is recommending this topic continue to be discussed atfuture City Selection Meetings for possible action.

. Santa Cruz County and the City of Santa Cruz's 2012/13 Living Wage Ordinances

provide for a Living Wage that is comparable to or higher than other living wage ratesin the Central Coast region at $14.26 per hour with benefits and $15.55 per hourwithout benefits.

. Santa Cruz County should amend its Living Wage Ordinance to more closely matchthose Ordinances of the City of Santa Cruz and Watsonville. This will alleviateconfusion among local vendors and allow for more overall compliance in thecommunity.

6 ~I r.

Attachment B

'000oaA

ll Urban C

onsumers (C

PI-U

)U

rban Wage E

arners and Clerical W

orkers (CP

I-W)

Percent C

hangePercent C

hange

MO

NT

HL

Y D

AT

AIndexes

Year

1 Month

IndexesY

ear1 M

onth-,._-

endingending

endingending

Oct

SepO

ctSep

Oct

Oct

Oct

SepO

ctSep

Oct

Oct

20112012

20122012

20122012

20112012

20122012

20122012

U. S

. City A

verage................................226.421

231.407231.317

2.02.2

0.0223.043

228.184227.974

2.02.2

-0.1

(1967=100)...........................................

678.258693.192

692.923-

--

664.376679.690

679.066-

--

Los Angeles-R

iverside-Orange C

o......233.049

238.104240.111

2.23.0

0.8226.116

231.085233.431

2.23.2

1.0

(1967=100)...........................................

688.530703.465

709.396-

--

668.242682.927

689.861-

--

West .....................................................

229.195234.083

234.9662.2

2.50.4

224.268228.798

229.8492.0

2.50.5

(Dec. 1977 =

100) ................ ......... .......370.481

378.382379.809

--

-360.835

368.123369.815

--

-

West - A

*..............................................233.259

238.684239.901

2.32.8

0.5226.759

232.024233.516

2.33.0

0.6

(Dec. 1977 =

= 100) ........... .....................

380.361389.208

391.192-

--

367.078375.601

378.017-

--

West - B

/C**(D

ec. 1996==

100)..............138.696

140.600140.847

1.51.6

0.2138.884

140.649140.914

1.41.5

0.2

All U

rban Consum

ers (CP

I-U)

Urban W

age Earners and C

lerical Workers (C

PI-W

)

Percent Change

Percent Change

Bl-M

ON

TH

LY D

AT

AIndexes

Year

2 Months

IndexesY

ear2 M

onths

endingending

endingending

Oct

Aug

Oct

Aug

Oct

Oct

Oct

Aug

Oct

Aug

Oct

Oct

20112012

20122012

20122012

20112012

20122012

20122012

San Francisco-Oakland-San Jose........

235.331241.170

242.8342.8

3.20.7

232.371238.445

240.8643.0

~i1.0

(1967=100)...........................................

723.474741.425

746.538-

--

707.590726.085

733.451-

--

Seatte- T

acoma-B

remerton........ ...........

235.916240.213

241.3552.7

2.30.5

232.697236.750

237.9472.7

2.30.5

(1967=100)...........................................

719.163732.261

735.743-

--

690.178702.199

705.750-

--

CO

NS

UM

ER

PR

ICE

IND

EX

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PA

CIF

IC C

ITIE

S A

ND

U. S

. CIT

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October 2012

AL

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(1982-84=100 unless otherwise noted)

* A =

1,500,000 population and o~er** B

IC =

less than 1,500,000 populationD

ash (-) = N

ot A~

ailable.

Release date Nov 15, 2012. The next

monthly releases are scheduled for D

ec. 14, 2012. The next bi-m

onthly releases are scheduled for Jan. 16, 2013.

Please note: A

s of October 1,2009 all hotline num

bers were discontinued w

ith the exception of San F

rancisco's. Custom

ers can continue to receive information by callng the

BL

S West R

egion Information O

ffce: (415) 625-2270.

This card is available on the day of release by electronic distribution. Just go to w

w.bls.gov/blsllst.htm

and sign up for the free on-line delivery service. For

questions, please contact us at BLS

infoSF

@B

LS.G

OV

or (415) 625.2270.O

l~

0087

Attachment CBEFORE THE BOARD OF SUPERVISORS

OF THE COUNTY OF SANTA CRUZ, STATE OF CALIFORNIA

RESOLUTION NO.

On the motion of the Supervisorduly seconded by the Supervisor

the following reslution is adopted

A RESOLUTION SETTING THE LIVING WAGE

WHEREAS, the Board of Supervisors has adopted Ordinance No. 4646 adding Chapter 2.122 tothe Santa Cruz County Code relating to a living wage; and

WHEREAS, Section 2.122.020 (b) provides that the living wage to be paid to employees pursuantto the requirements of the Living Wage Ordinance shall be a minimum hourly wage set by resolution ofthe Board of Supervisors after consideration of the annual cost of living increase as measured by theSan Francisco-Oakland-San Jose area Consumer Price Index, Consumer Price Index for Urban WageEarners and Clerical Workers, per cent change for the period October to October; and

WHEREAS, the annual cost of living increase as determined from the above index is 3.7%.

NOW, THEREFORE, BE IT RESOLVED AND ORDERED by the Board of Supervisors thateffective July 1, 2013:

1. The living wage to be paid to employees when said employees receive theminimum level of benefits as described in Section 2.122.020 (c) of the Ordinanceshall be $14.79 per hour; and

2. The living wage to be paid to employees when said employees do not receive the

minimum level of benefits as described in Section 2.122.020 (c) of the Ordinanceshall be $16.13 per hour which wil match the City of Santa Cruz approved

amount.

PASSED AND ADOPTED by the Board of Supervisors of the County of Santa Cruz, State ofCalifornia, this 21st day of May, 2013 by the following vote:

AYES:NOES:ABSENT:

SUPERVISORSUPERVISORSUPERVISOR

Chairperson of the Board of SupervisorsATTEST:

Clerk of the Board

APPROVED AS TO FORM:

lJ ''-l~-c~eiDistribution: All County Departments

P:\Board Letter\20 12-20 13\Living Wage\attchment C 2013-14 Living Wage Resolution.doc ~a

0088

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:e ~;: ....:: II0 :: ("i: :i ::.. 0 II 30- i: ..

1I Ctif if tf tf tf V) if if if if if if Ct :i 0 ::-' -' -' -' .. -' .. -' .. -' -' :: "" :: ...¡ .¡ .¡ .¡ .¡ .¡ ~ w ~ N N N Z Z Ct ., c: 0N :: IIN N N N N cx c. -' cx -. c. j; ); .. ..

eD-. -. -. -. -. -. a (j .¡ .¡ .. c. 1I Ct

c.--w--Na-'w

21

0089

Attachment E (Proposed - Clean)

Chapter 2.122

PAYMENT OF LIVING WAGE

Sections:

2.122.010 Findings and purpose.2.122.020 Living wage requirement.

2.122030 Definitions.2.122.040 Exemptions.

2.122.050 Nonprofit and other agencies.

2.122060 Assignees/successors in interest.2.122070 Contract provision.

2.122.080 Certification by contractor.

2.122.090 Application of chapter.

2.122.100 Notification of employees.

2.122.110 Monitoring and enforcement.

2.122.120 Third tier review.

2.122.130 Labor relation neutrality.

2.122.140 Employee retention.

2.122.150 Severability.

2.122.010 Findings and purpose.

In enacting this chapter the Board of Supervisors makes the following findings and articulates the

following purposes for the promulgation of the living wage regulations set forth herein:

(A) The health and welfare of all Santa Cruz County residents is benefited and advances when SantaCruz County workers are paid a living wage;

(B) The County awards many contracts to private sector employers to provide services to the County inaccordance with those contracts;

(C) Many workers in Santa Cruz County and their families live at or below the poverty line. The paymentof inadequate wages to those workers tends to negatively affect the quality of services provided to the

County and its residents by fostering high turnover and instability in the workplace;

(D) The payment of a living wage will increase the ability of low wage workers to attain sustenance,decrease the amount of poverty and reduce the amount of taxpayer funded services provided in the

County of Santa Cruz;

(E) Some employers who provide contract services to the County do not provide health insurancebenefits to their employees. This factor negatively affects worker performance and the quality of services

~I

0090

delivered to the County and its residents, results in unwarranted employee absenteeism and negatively

impacts local and State health programs. These problems can be favorably impacted if employers provide

reasonable health insurance benefits to their employees; and

(F) Living wage jobs will decrease poverty, increase consumer income and invigorate neighborhood

businesses. (Ord. 4647 § 1, 2001).

2.122.020 Living wage requirement.

(A) Covered employees shall be paid a living wage.

(B) The "living wage" to be paid to employees pursuant to the requirements of this chapter shall be aminimum hourly wage set by resolution of the Board of Supervisors after consideration of the annual cost

of living increase as measured by the San Francisco-Oakland-San Jose Area Consumer Price Index,

Table 6-Consumer Price Index for Urban Wage Earners and Clerical Workers, percent change for the

period October to October. The Chairperson of the Board of Supervisors, or his/her designee, shall meet

once a year with representatives appointed by each of the other jurisdictions in Santa Cruz County who

have adopted living wage ordinances to recommend a uniform living wage index, based on the Consumer

Price Index. Any adjustments made to the minimum hourly wage shall become effective the following July

1 st, or on such other date as specified in the resolution setting the wage.

(C) "Benefits" as used in this section means all of the following at a minimum, provided by employer: 12days compensated sick and vacation leave (combined) annually for full-time employees, prorated for

employees working less than full time; payment of at least $1.00 per hour toward health insurance for the

employee. No covered employer will fund wage increases required by this chapter, or otherwise respond

to the provisions of this chapter, by reducing the health insurance, pension, vacation or other non-wage

benefits of any of its employees.

(0) Amendments to this chapter concerning the definition of living wage shall apply to contracts enteredinto or extended following the effective date of such amendments. (Ord. 4676 § 1,2002; Ord. 4647 § 1,

2001).

2.122.030 Definitions.

The following words and phrases, whenever used in this chapter, shall be given the following definitions:

(A) "Contract for private sector services" shall refer to any contract for profit between the County and aprivate sector contractor for the following services:

Automotive repair and maintenance;

Equipment maintenance service;

Facility and building maintenance;

Furniture moving and installation/maintenance services;

Janitorial and custodial services;

Landscaping services;

~I

0091

Laundry services;

Office and clerical services;

Pest control services;

Recreation services;

Security services;

Transportation and shuttle services;

Towing services;

Tree trimming and removaL.

(8) "Contract for private sector services" does not refer to: contracts for commodities, goods or supplies;

contracts for public works; contracts for public projects subject to prevailing wage requirements; contracts

for professional services including but not limited to the services of architects, engineers, landscape

architects, land surveyors, construction managers, scientists, physicians, attorneys, financial advisers or

consultants; nor leases.

(C) "Contractor for private sector services" shall refer to any private sector contractor/employer whoenters into a contract or contracts for private sector services with the County, with the cumulative

compensation amount in one County fiscal year greater than $15,000.

(D) "Subcontractor" shall refer to any subcontractor who enters into a subcontract with a contractor forprivate sector services.

(E) "Covered employee" shall refer to any employee of a contractor for private sector services, or to anyemployee of a subcontractor who lives or works in Santa Cruz County. In the foregoing context, "covered

employees" are those persons hired by contractors or subcontractors to work on county contracts on a

full-time, part-time, temporary, seasonal or regular basis for wages or salary.

"Covered employee" shall not include persons who are: subject to California child labor protections under

the California Labor Law sections 1171 et seq.; in positions that are designated for "trainees" that are part

of an employer's bona fide time-limited training program, which training program enables the employee to

advance into a permanent position; in positions of employment that require student status as a

prerequisite to being employed in that position; volunteers; recipients of income support such as but not

limited to supplemental security income who would become ineligible for such benefits by virtue of

receiving a living wage as described herein, who waive in writing their entitlement to a living wage; or

workers in licensed, sheltered workshops or supported employment; recipients of public funds who have

been placed in a work experience, on-the-job training position, summer employment position or wage-

based community service position as defined by the Human Serv~ces Department Director or Health

Services Agency Administrator.

"Covered employee" shall not include those employees who are represented by a bargaining unit or labor

union pursuant to rights conferred by State or Federal law and for whom a collective bargaining labor

agreement is in effect governing their terms and conditions of employment.

~&

0092

(F) "County" shall refer to the County of Santa Cruz including all County departments, related Countyentities governed by the Board of Supervisors excluding the Public Authority. lOrd. 4647 § 1, 2001).

2.122.040 Exemptions.

(A) Exempted from the requirements of this chapter are contractors with five or fewer employees.

(B) The Board of Supervisors in its sole discretion, or its designee, may grant an exemption foradditional grounds upon making a finding and determination either that compliance with the living wage

will cause economic hardship, or that the exemption is necessary for the best interests of the County and

is due to unusual circumstances (e.g., following a declared natural disaster) or where the County is

required to award a contract for services to a sole source contractor for services. For all exemption

requests, the exemption applicant must provide a written statement that includes complete details in

support of the request for exemption and describe alternative solutions pursued. Exemptions will apply

only to the contract for which they are granted. lOrd. 4647 § 1,2001).

2.122.050 Nonprofit and other agencies.

This section shall apply to nonprofit agencies as follows:

(A) All nonprofit contractors shall be exempt from the living wage rate requirement of this chapter.

(B) Nonprofit contractors shall be required to comply with the "non-wage" related requirements of this

chapter as set forth in SCCC 2.122.100, 2.122.130, and 2.122.140.

(C) Nonprofit contractors shall be required to provide wage data as required by the County for all

employees compensated at a rate less than the living wage standard.

(0) All exemptions set forth in SCCC 2.122.040 shall apply to nonprofit contractors, includingcontractors with five or fewer employees and contractors granted an economic hardship exemption based

on a determination of the Board of Supervisors in its sole discretion. An additional exemption to the

requirements of this chapter shall be programs operated by nonprofit contractors that do not receive any

County funds.

(E) All monitoring and enforcement of "non-wage" related requirements set forth in SCCC 2.122.110shall apply to nonprofit contractors.

(F) The following definitions shall apply to nonprofit contractors:

(1) "Contractor for nonprofit services" means any nonprofit contractor/employer who enters into

a contract or contracts for nonprofit services with the County, with the cumulative compensation

in one County fiscal year greater than $15,000.

(2) "Covered employee" means any employee of a nonprofit contractor for service who lives orworks in Santa Cruz County. "Covered employee" shall not include persons designated as

"trainees" in an employer's bona fide time-limited training program, positions that require student

21

0093

status, volunteers, recipients of income support such as but not limited to supplemental security

income who would become ineligible for such benefits by virtue of receiving a living wage and

who waive in writing their entitlement to a living wage, workers in licensed, sheltered workshops

or supported employment; recipients of public funds who have been placed in work experience,

on-the-job training positions, summer employment positions, or wage-based community service

positions as defined by the Human Services Department Director or Health Services Agency

Administrator; nor those employees who are represented by a bargaining unit or labor union

pursuant to rights conferred by State or Federal law and for whom a collective bargaining

agreement is in effect governing their terms and conditions of employment.

(G) Applicability of this chapter to for-profit health and human service agencies shall be considered bythe Board of Supervisors at a later date. (Ord. 4721 § 1,2003; Ord. 4647 § 1,2001).

2.122.060 Assignees/successors in interest.

The living wage requirement imposed by this chapter shall be binding upon the assignees and

successors in interest of any contractor or subcontractor to which this chapter applies. (Ord. 4647 § 1,

2001 j.

2.122.070 Contract provision.

County departments and officers shall place in contracts for services and related requests for proposals

or bid documents language in substantially the following form: "This contract is subject to the provisions of

Chapter 2.122 SCCC, requiring payment of a living wage to covered employees. Noncompliance during

the term of the contract will be considered a material breach and may result in termination of the contract

or pursuit of other legal or administrative remedies." (Ord. 4647 § 1, 2001).

2.122.080 Certification by contractor.Prior to commencement of the contract's term or execution by the County, the contractor will certify to the

satisfaction of the County that its employees are paid a living wage as provided by this chapter. (Ord.

4647 § 1,2001).

2.122.090 Application of chapter.The living wage requirement imposed by this chapter shall apply to all contracts for services and related

subcontracts made or entered into, or extended, on or after the effective date of the ordinance enacting

this chapter. (Ord. 4647 § 1,2001).

2.122.100 Notification of employees.Contractors for services and subcontractors shall notify all employees subject to the provisions of this

chapter of the requirement to pay a living wage, the current minimum living wage rates, the minimum

vacation leave and sick leave that must be provided and the minimum amount paid toward health

insurance to qualify for the lower minimum living wage Contractors for services and subcontractors shall

post a copy of this chapter and the approved complaint procedure in the workplace, and provide this

information to employees upon request. (Ord. 4647 § 1,2001).

:¿I

0094

2.122.110 Monitoring and enforcement.

Monitoring of compliance with the requirements of this chapter shall occur under the same monitoring

program as applicable to the County's prevailing wage requirements. An annual report shall be provided

to the Board of Supervisors or its designee concerning the status of the program.

The County Administrative Officer shall be the compliance officer for the purpose of enforcing the

provisions of this chapter. Complaints concerning contractors' compliance with this chapter shall be made

to the compliance officer, who shall follow the complaint procedure established by the Board of

Supervisors.

Any employee claiming violation of this chapter may report such acts to the County and may bring an

action in the appropriate court of the State of California or other appropriate administrative agency,

against an employer to enforce his or her rights. Nothing in this chapter shall preclude an employee from

seeking any or all forms of relief and damages.

Contractors or subcontractors shall not discharge, reduce the compensation of, discriminate or otherwise

retaliate against or intimidate any person for making a complaint to the County concerning noncompliance

with obligations under this chapter. Contractors for services and subcontractors shall also comply with

Federal, State and all other applicable law proscribing retaliation for union organizing. (Ord. 4647 § 1,

2001).

2.122.120 Third tier review.Prior to commencement of the contract's term or execution by the County, the contractor and/or

subcontractor will certify to the satisfaction of the County that its employees are paid a living wage as

provided by this chapter. Contractors and subcontractors must include a statement of findings of any

violations found against the contractor and/or subcontractor over the past five years and how these

violations were addressed, with the National Employees Relations Board, the Occupational Safety and

Health Agency, the California Labor Commission, the Equal Employment Opportunity Commission and/or

the Department of Fair Employment and Housing.

Prior to final approval of contracts procured pursuant to SCCC 2.37.040, pertaining to Board of

Supervisors approval of services agreements, the County would consider the history of the proposer as

an employer and the working conditions of the employer's employees as deemed appropriate by the

Board of Supervisors. The County shall be authorized to access and review the employer's employee

turnover, wages paid, benefits and employee grievances or complaints and consider references from

entities engaged in prior contracts with the contractor or subcontractor. Any proprietary information, or

personnel and employee information, shall be kept confidentiaL. This information would be taken into

account as part of consideration of the contract and may be used by the Board as the basis for contract

deniaL. (Ord. 4647 § 1,2001).

2.122.130 Labor relation neutrality.

~I

0095

Contractors for services and subcontractors shall not hinder or further collective bargaining organization

or other collective bargaining activities by or on behalf of an employer's employees. However, this

restriction shall not apply to any expenditure made in the course of good faith collective bargaining, or to

any expenditure made pursuant to obligations incurred under a bona fide collective bargaining

agreement. (Ord. 4647 § 1, 2001).

2.122.140 Employee retention.In the event that any contract for services for an amount greater than $50,000 is terminated by the County

prior to its expiration, any new contract with a subsequent contractor for those same services shall

include the following term:

Contractor shall make best efforts to offer employment to qualified employees of the prior contractor for

the performance of this contract. Such efforts shall not be required in regard to employees who are (A)

exempt under the Fair Labor Standards Act, (B) family members of prior contractor, (C) employed by prior

contractor for less than six months or (D) convicted of a job-related or workplace crime. Upon request by

the County, the contractor shall demonstrate to the County that good faith efforts have been made to

comply with this provision. (Ord. 4747 § 1,2001).

2.122.150 Severability.If any section, subdivision, paragraph, sentence, clause or phrase of the ordinance codified in this chapter

is for any reason held to be unconstitutional or invalid, such a decision shall not affect the validity of the

remaining portion of the ordinance. The Board of Supervisors hereby declares that it would have passed

each section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance

irrespective of the unconstitutionality or invalidity of any section, subdivision, subsection, paragraph,

sentence, clause or phrase of the ordinance codified in this chapter. (Ord. 4647 § 1,2001).

;¿a

Sections:

2.122.010

2.122.020

2.122.030

2.122.040

2.122.050

2.122.060

2.122.070

2.122.080

2.122.090

2.122.100

2.122.110

2.122.120

2.122.130

2.122.140

2.122.150

0096

Attachment E - (Proposed Strikeout)

Chapter 2.122

PAYMENT OF LIVING WAGE

Findings and purpose.

Living wage requirement.

Definitions.

Exemptions.

Nonprofit and other agencies.

Assignees/successors in interest.

Contract provision.

Certification by contractor.

Application of chapter.

Notification of employees.

Monitoring and enforcement.

Third tier review.

Labor relation neutrality.

Employee retention.

Severability.

2.122.010 Findings and purpose.

In enacting this chapter the Board of Supervisors makes the following findings and articulates the

following purposes for the promulgation of the living wage regulations set forth herein:

(A) The health and welfare of all Santa Cruz County residents is benefited and advances when SantaCruz County workers are paid a living wage;

(B) The County awards many contracts to private sector employers to provide services to the County inaccordance with those contracts;

(C) Many workers in Santa Cruz County and their families live at or below the poverty line. The paymentof inadequate wages to those workers tends to negatively affect the quality of services provided to the

County and its residents by fostering high turnover and instability in the workplace;

(D) The payment of a living wage will increase the ability of low wage workers to attain sustenance,decrease the amount of poverty and reduce the amount of taxpayer funded services provided in the

County of Santa Cruz;

(E) Some employers who provide contract services to the County do not provide health insurancebenefits to their employees. This factor negatively affects worker performance and the quality of services

21

0097

delivered to the County and its residents, results in unwarranted employee absenteeism and negatively

impacts local and State health programs. These problems can be favorably impacted if employers provide

reasonable health insurance benefits to their employees; and

(F) Living wage jobs will decrease poverty, increase consumer income and invigorate neighborhood

businesses. (Ord. 4647 § 1,2001).

2.122.020 Living wage requirement.

(A) Covered employees shall be paid a living wage.

(B) The "living wage" to be paid to employees pursuant to the requirements of this chapter shall be aminimum hourly wage set by resolution of the Board of Supervisors after consideration of the annual cost

of living increase as measured by the San Francisco-Oakland-San Jose Area Consumer Price Index,

Table 6-Consumer Price Index for Urban Wage Earners and Clerical Workers, percent change for the

period October to October. The Chairperson of the Board of Supervisors, or his/her designee, shall meet

once a year with representatives appointed by each of the other jurisdictions in Santa Cruz County who

have adopted living wage ordinances to recommend a uniform living wage index, based on the Consumer

Price Index. Any adjustments made to the minimum hourly wage shall become effective the following July

1 st, or on such other date as specified in the resolution setting the wage.

(C) "Benefits" as used in this section means all of the following at a minimum, provided by employer: 12days compensated sick and vacation leave (combined) annually for full-time employees, prorated for

employees working less than full time; payment of at least $1.00 per hour toward health insurance for the

employee. No covered employer will fund wage increases required by this chapter, or otherwise respond

to the provisions of this chapter, by reducing the health insurance, pension, vacation or other non-wage

benefits of any of its employees.

(D) Amendments to this chapter concerning the definition of living wage shall apply to contracts enteredinto or extended following the effective date of such amendments. (Ord. 4676 § 1,2002; Ord. 4647 § 1,

2001 ).

2.122.030 Definitions.The following words and phrases, whenever used in this chapter, shall be given the following definitions:

(A) "Contract for private sector services" shall refer to any contract for profit between the County and aprivate sector contractor for the following services:

Automotive repair and maintenance;

Equipment maintenance service;

Facility and building maintenance;

Furniture moving and installation/maintenance services;

Janitorial and custodial services;

Landscaping services;

21

0098

Laundry services;

Office and clerical services;

Pest control services;

Recreation services;

Security services;

Transportation and shutte services;Towing services;

Tree trimming and removaL.

(8) "Contract for private sector services" does not refer to: contracts for commodities, goods or supplies;

contracts for public works; contracts for public projects subject to prevailing wage requirements; contracts

for professional services including but not limited to the services of architects, engineers, landscape

architects, land surveyors, construction managers, scientists, physicians, attorneys, financial advisers or

consultants; nor leases.

(C) "Contractor for private sector services" shall refer to any private sector contractor/employer whoenters into a contract or contracts for private sector services with the County, with the cumulative

compensation amount in one County fiscal year greater than $15,000.

(D) "Subcontractor" shall refer to any subcontractor who enters into a subcontract with a contractor forprivate sector services.

(E) "Covered employee" shall refer to any employee of a contractor for private sector services, or to anyemployee of a subcontractor who lives or works in Santa Cruz County. In the foregoing context, "covered

employees" are those persons hired by contractors or subcontractors to work on county contracts on a

full-time, part-time, temporary, seasonal or regular basis for wages or salary.

"Covered employee" shall not include persons who are: subject to California child labor protections under

the California Labor Law sections 1171 et seq.; in positions that are designated for "trainees" that are part

of an employer's bona fide time-limited training program, which training program enables the employee to

advance into a permanent position; in positions of employment that require student status as a

prerequisite to being employed in that position; volunteers; recipients of income support such as but not

limited to supplemental security income who would become ineligible for such benefits by virtue of

receiving a living wage as described herein, who waive in writing their entitlement to a living wage; or

workers in licensed, sheltered workshops or supported employment; recipients of public funds who have

been placed in a work experience, on-the-job training position, summer employment position or wage-

based community service position as defined by the Human Resources Agency Administrator Services

Department Director or Health Services Agency Administrator.

"Covered employee" shall not include those employees who are represented by a bargaining unit or labor

union pursuant to rights conferred by State or Federal law and for whom a collective bargaining labor

agreement is in effect governing their terms and conditions of employment.

21

0099

(F) "County" shall refer to the County of Santa Cruz including all County departments, related County

entities governed by the Board of Supervisors, such as the Redevelopment Agency, excluding the Public

Authority. (Ord. 4647 § 1, 2001).

2.122.040 Exemptions.

(A) Exempted from the requirements of this chapter are contractors with five or fewer employees.

(B) The Board of Supervisors in its sole discretion, or its designee, may grant an exemption foradditional grounds upon making a finding and determination either that compliance with the living wage

will cause economic hardship, or that the exemption is necessary for the best interests of the County and

is due to unusual circumstances (e.g., following a declared natural disaster) or where the County is

required to award a contract for services to a sole source contractor for services. For all exemption

requests, the exemption applicant must provide a written statement that includes complete details in

support of the request for exemption and describe alternative solutions pursued. Exemptions will apply

only to the contract for which they are granted. (Ord. 4647 § 1, 2001).

2.122.050 Nonprofit and other agencies.

This section shall apply to nonprofit agencies as follows:

(A) All nonprofit contractors shall be exempt from the living wage rate requirement of this chapter.

(B) Nonprofit contractors shall be required to comply with the "non-wage" related requirements of this

chapter as set forth in SCCC 2.122.100,2.122.130, and 2.122.140.

(C) Nonprofit contractors shall be required to provide wage data as required by the County for all

employees compensated at a rate less than the living wage standard.

(D) All exemptions set forth in SCCC 2.122.040 shall apply to nonprofit contractors, includingcontractors with five or fewer employees and contractors granted an economic hardship exemption based

on a determination of the Board of Supervisors in its sole discretion. An additional exemption to the

requirements of this chapter shall be programs operated by nonprofit contractors that do not receive any

County funds.

(E) All monitoring and enforcement of "non-wage" related requirements set forth in SCCC 2.122.110shall apply to nonprofit contractors.

(F) The following definitions shall apply to nonprofit contractors:

(1) "Contractor for nonprofit services" means any nonprofit contractor/employer who enters into

a contract or contracts for nonprofit services with the County, with the cumulative compensation

in one County fiscal year greater than $15,000.

(2) "Covered employee" means any employee of a nonprofit contractor for service who lives orworks in Santa Cruz County. "Covered employee" shall not include persons designated as

~2

0100

"trainees" in an employer's bona fide time-limited training program, positions that require student

status, volunteers, recipients of income support such as but not limited to supplemental security

income who would become ineligible for such benefits by virtue of receiving a living wage and

who waive in writing their entitlement to a living wage, workers in licensed, sheltered workshops

or supported employment; recipients of public funds who have been placed in work experience,

on-the-job training positions, summer employment positions, or wage-based community service

positions as defined by the Human Resources Agency Services Department Director or Health

Services Agency Director; Administrator nor those employees who are represented by a

bargaining unit or labor union pursuant to rights conferred by State or Federal law and for whom

a collective bargaining agreement is in effect governing their terms and conditions of

employment.

(G) Applicability of this chapter to for-profit health and human service agencies shall be considered bythe Board of Supervisors at a later date. (Ord. 4721 § 1,2003; Ord. 4647 § 1,2001).

2.122.060 Assignees/successors in interest.

The living wage requirement imposed by this chapter shall be binding upon the assignees and

successors in interest of any contractor or subcontractor to which this chapter applies. (Ord. 4647 § 1,

2001 ).

2.122.070 Contract provision.County departments and officers shall place in contracts for services and related requests for proposals

or bid documents language in substantially the following form: "This contract is subject to the provisions of

Chapter 2.122 SCCC, requiring payment of a living wage to covered employees. Noncompliance during

the term of the contract will be considered a material breach and may result in termination of the contract

or pursuit of other legal or administrative remedies." (Ord. 4647 § 1, 2001).

2.122.080 Certification by contractor.Prior to commencement of the contract's term or execution by the County, the contractor will certify to the

satisfaction of the County that its employees are paid a living wage as provided by this chapter. (Ord.

4647 § 1, 2001).

2.122.090 Application of chapter.

The living wage requirement imposed by this chapter shall apply to all contracts for services and related

subcontracts made or entered into, or extended, on or after the effective date of the ordinance enacting

this chapter. (Ord. 4647 § 1,2001).

2.122.100 Notification of employees.Contractors for services and subcontractors shall notify all employees subject to the provisions of this

chapter of the requirement to pay a living wage, the current minimum living wage rates, the minimum

vacation leave and sick leave that must be provided and the minimum amount paid toward health

insurance to qualify for the lower minimum living wage. Contractors for services and subcontractors shall

12

0101

post a copy of this chapter and the approved complaint procedure in the workplace, and provide this

information to employees upon request (Ord. 4647 § 1,2001).

2.122.110 Monitoring and enforcement.Monitoring of compliance with the requirements of this chapter shall occur under the same monitoring

program as applicable to the County's prevailing wage requirements. An annual report shall be provided

to the Board of Supervisors or its designee concerning the status of the program.

The County Administrative Officer shall be the compliance officer for the purpose of enforcing the

provisions of this chapter. Complaints concerning contractors' compliance with this chapter shall be made

to the compliance offcer, who shall follow the complaint procedure established by the Board of

Supervisors.

Any employee claiming violation of this chapter may report such acts to the County and may bring an

action in the appropriate court of the State of California or other appropriate administrative agency,

against an employer to enforce his or her rights. Nothing in this chapter shall preclude an employee from

seeking any or all forms of relief and damages.

Contractors or subcontractors shall not discharge, reduce the compensation of, discriminate or otherwise

retaliate against or intimidate any person for making a complaint to the County concerning noncompliance

with obligations under this chapter. Contractors for services and subcontractors shall also comply with

Federal, State and all other applicable law proscribing retaliation for union organizing. (Ord. 4647 § 1,

2001).

2.122.120 Third tier review.Prior to commencement of the contract's term or execution by the County, the contractor and/or

subcontractor will certify to the satisfaction of the County that its employees are paid a living wage as

provided by this chapter. Contractors and subcontractors must include a statement of findings of any

violations found against the contractor and/or subcontractor over the past five years and how these

violations were addressed, with the National Employees Relations Board, the Occupational Safety and

Health Agency, the California Labor Commission, the Equal Employment Opportunity Commission and/or

the Department of Fair Employment and Housing.

Prior to final approval of contracts procured pursuant to SCCC 2.37.040, pertaining to Board of

Supervisors approval of services agreements, the County would consider the history of the proposer as

an employer and the working conditions of the employer's employees as deemed appropriate by the

Board of Supervisors. The County shall be authorized to access and review the employer's employee

turnover, wages paid, benefits and employee grievances or complaints and consider references from

entities engaged in prior contracts with the contractor or subcontractor. Any proprietary information, or

personnel and employee information, shall be kept confidentiaL. This information would be taken into

account as part of consideration of the contract and may be used by the Board as the basis for contract

deniaL. (Ord. 4647 § 1,2001).

22

0102

2.122.130 Labor relation neutrality.

Contractors for services and subcontractors shall not hinder or further collective bargaining organization

or other collective bargaining activities by or on behalf of an employer's employees. However, this

restriction shall not apply to any expenditure made in the course of good faith collective bargaining, or to

any expenditure made pursuant to obligations incurred under a bona fide collective bargaining

agreement. (Ord. 4647 § 1, 2001).

2.122.140 Employee retention.In the event that any contract for services for an amount greater than $50,000 is terminated by the County

prior to its expiration, any new contract with a subsequent contractor for those same services shall

include the following term:

Contractor shall make best efforts to offer employment to qualified employees of the prior contractor for

the performance of this contract. Such efforts shall not be required in regard to employees who are (A)

exempt under the Fair Labor Standards Act, (B) family members of prior contractor, (C) employed by prior

contractor for less than six months or (0) convicted of a job-related or workplace crime. Upon request by

the County, the contractor shall demonstrate to the County that good faith efforts have been made to

comply with this provision. (Ord. 4747 § 1, 2001).

2.122.150 Severability.

If any section, subdivision, paragraph, sentence, clause or phrase of the ordinance codified in this chapter

is for any reason held to be unconstitutional or invalid, such a decision shall not affect the validity of the

remaining portion of the ordinance. The Board of Supervisors hereby declares that it would have passed

each section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance

irrespective of the unconstitutionality or invalidity of any section, subdivision, subsection, paragraph,

sentence, clause or phrase of the ordinance codified in this chapter. (Ord. 4647 § 1, 2001).

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