HomeMy WebLinkAboutReso - CC - 076-2017RESOLUTION NO. 76-2017
RESOLUTION OF THE CITY OF BURLINGAME ESTABLISHING AN AREA
STANDARD WAGE POLICY FOR NEW COMMERCIAL DEVELOPMENTS SUBJECT
TO THE IMPOSITION OF LINKAGE FEES UNDER CHAPTER 25.81 OF THE
MUNICIPAL CODE
WHEREAS, California Government Code Section 65580(d) states that all cities have a
responsibility to use the powers vested in them to facilitate the improvement and development of
housing and to make adequate provision for the housing needs of all economic segments of the
community; and
WHEREAS, the City Council of the City of Burlingame has determined that the development
of an area standard wage policy, in addition to the City's commitment to enforcing prevailing wage
requirements as to public works projects, as such projects are defined in California Labor Code
Section 1720 et seq., is necessary to protect local job opportunities and to increase wages of
workers and residents in the city; and
WHEREAS, the City Council has adopted a commercial linkage fee ordinance (Municipal
Code Section 25.81) that authorizes the imposition of commercial linkage fees for certain
commercial development projects to mitigate the impact of such projects on the need for
affordable housing in the city (the "Commercial Linkage Fee Ordinance"); and
WHEREAS, in connection with its Commercial Linkage Fee Ordinance, the City has received
and considered reports from the Commercial Linkage Fee Nexus Study dated November 2015,
prepared by Strategic Economics and Vernazza Wolfe Associates, Inc.; and
WHEREAS, the Nexus Study demonstrates that commercial development projects create a
need for affordable housing in the city by creating many jobs paying such low wages that workers
cannot afford market rate housing in the city; and
WHEREAS, the City has determined that the payment by commercial development projects of
"Area Standard Wages," which shall be defined as the general prevailing wage determinations for
San Mateo County as made by the State of California Director of the Department of Industrial
Relations, will increase certain households' ability to afford housing in the city, thereby reducing
the impact of those commercial development projects on the need for affordable housing in the
city; and
WHEREAS, in recognition of the reduced impact of projects paying Area Standard Wages,
the City Council now desires to adopt an Area Standard Wage Policy that will reduce the
Commercial Linkage Fee for all commercial development projects that voluntarily enter into an
agreement with the City to pay Area Standard Wages consistent with this Resolution; and
RESOLUTION NO. 76-2017
WHEREAS, the staff report accompanying this Resolution and referenced documents have
been presented to and considered by the City Council in support of the findings and approvals set
forth in this Resolution; are hereby incorporated by reference to this Resolution; and, together with
the above recitals any public testimony received, form the evidentiary basis and establish the
analytical route for reaching the ultimate findings and conclusions contained in this Resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Burlingame as
follows:
The foregoing recitals are true and correct and incorporated into this Resolution by this
reference.
2. The provisions of this Resolution shall apply to all commercial development projects, as
such terms are defined in the Commercial Linkage Fee Ordinance, where the developer
voluntarily enters into an "Area Standard Wage Participation Agreement" (an
"Agreement") with the City. The Agreement shall apply to construction of the
development project and related public works that are within the customary jurisdiction
of the construction trades and crafts, whether performed on or off-site, but need not
include off-site work performed by materialmen, as defined under California law.
3. Upon execution of an Agreement that conforms to the requirements of this Resolution,
initial fees shall be imposed on new commercial development projects as follows:
$5.00 per square foot for retail development (includes restaurant and service uses),
$10.00 per square foot for hotel, $15.00 per square feet for office of 50,000 square feet
or less, and $20.00 per square feet for office greater than 50,000 square feet. If the
developer commits a material breach of such Agreement, the difference in commercial
linkage fees between the adopted fees and the reduced amount under this Resolution
shall become due and payable to the City, in addition to all other remedies set forth
herein.
4. All employees performing construction work for a project subject to an Agreement
shall be paid not less than the Area Standard Wage or the highest prevailing rate of per
diem wages as determined and published by the California Department of Industrial
Relations subject to California Labor Code Section 1733 from the commencement of
construction until the issuance of the latter of either a final certificate of occupancy or a
final inspection. Nothing in this Resolution shall be construed to prohibit payment of
more than Area Standard Wages.
5. The Agreement shall apply to the employees of any employer, including the developer,
any general contractor or subcontractor, or other contractor engaged in construction
including their successors or assignees (collectively, the "employer"), but it shall not
apply to supervisory or managerial personnel or to persons employed in the rental,
operation, or maintenance of the nonresidential development project.
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RESOLUTION NO. 76-2017
6. The initial Area Standard Wage for each of the employer's employees shall be the
published wage rate as of the date the employee commences work on the nonresidential
development project. The employer shall be responsible for checking on a quarterly
basis whether the Area Standard Wage has been adjusted. In the event that the Area
Standard Wage has been adjusted, the employer shall pay such adjusted Area Standard
Wage; provided, however, that in no event shall the employer pay less than the initial
Area Standard Wage.
7. The employer shall keep an accurate payroll record as specified in California Labor
Code Section 1776(a). Certified copies of the payroll records shall be available for
inspection at all reasonable hours at a local office of the employer. Copies of the Area
Standard Wage Participation Agreement and the records granting the permits
authorizing the nonresidential development project shall be provided upon request of a
City representative. Any employee, his or her designee, or the public may also request
copies of the payroll records from the City. The addresses and social security numbers
of the employees may be masked or deleted so as to prevent disclosure in copies
furnished to the public. The failure of an employer to comply with the requirements of
this section shall create a presumption that Area Standard Wages have not been paid.
8. Nothing in this Resolution shall prevent the employment of any number of properly
registered apprentices, as defined in Chapter 4, Division 3 of the California Labor
Code. Every such apprentice shall be paid not less than the Area Standard Wage paid to
apprentices under the regulations of the crafts or trade at which he or she is employed
and shall be employed only at the work of the craft or trade to which he or she is
registered. The employment and training of each apprentice shall be in accordance with
the provisions of the apprenticeship standards and apprentice agreements under which
he or she is in training.
9. The provisions of this Resolution shall be incorporated into the Agreement for all
commercial development projects where the developer voluntarily agrees to enter into
an Agreement. The developer shall also cause the provisions of this requirement to be
incorporated into each contract and subcontract which would be subject to this
requirement. In the event the provisions are not so incorporated, the developer shall be
liable to the worker in any action or proceeding for the difference between the Area
Standard Wage rate required to be paid and the amount actually paid to the worker,
including costs and attorney fees, as if the developer were the actual employer.
10. The Community Development Director, or his or her designee, shall maintain for public
inspection the current Area Standard Wages. All bid specifications and contracts
subject to the provisions of this Resolution shall reference the obligations imposed
under this Resolution. A copy of the applicable wage rates together with a copy of a
"Notice to Employees," which notice shall be prepared by the developer and approved
by City staff, shall be given to any employer subject to the provisions of this
Resolution, and all such employers shall post a copy of the Area Standard Wages
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RESOLUTION NO. 76-2017
applicable to the work to be done at the job site in a prominent, visible place readily
accessible to the workers employed in the construction of the improvements.
11. No laborer or employee to whom the wage, salary, or other labor standards of this
Resolution are applicable shall be discharged or in any other manner discriminated
against by the employer because such employee has filed any complaint or instituted,
or caused to be instituted, any proceeding or has testified or is about to testify in any
proceeding under or relating to the provisions of this Resolution.
12. In the event of a breach of this Resolution or an Area Standard Wage Participation
Agreement, the employer shall be liable to the employee for any unpaid wages
overtime wages, and benefits established by this Resolution.
13. In the event of failure to pay any employee, laborer, or mechanic (including any
apprentice, trainee, or helper) employed in the construction of a residential or
nonresidential development project subject to this Resolution all or part of the wages
required by this Resolution, the developer shall, upon written demand of the
Community Development Director, withhold or cause to be withheld from any moneys
payable on account of work performed by a contractor an amount as may be considered
necessary to pay laborers and mechanics employed by such contractor or subcontractor
the full amount of wages, overtime wages, and benefits required by these labor
standards after providing 10 -days written notice of such intent to the contractor or
subcontractor who has failed to pay the applicable Area Standard Wages to any worker.
The developer shall, after such written notice to the contractor, disburse such amounts
withheld for and on account of the contractor to the respective employees to whom they
are due. If the employee cannot be found to satisfy the unpaid wages, unpaid overtime
wages, and benefits, all such sums shall be remitted to the City's general fund,
including a credit for applicable accrued penalties.
14. Nothing in this Resolution shall preclude enforcement by the California Division of
Labor Standards Enforcement for any matter over which the Division has jurisdiction.
15. The Community Development Director shall have the authority to issue guidelines,
rules or regulations from time to time in furtherance of this Resolution.
16. Adoption of this Resolution is exempt from the California Environmental Quality Act
(CEQA) because the adoption of this Resolution is not a project, in that it is related to a
government funding mechanism which does not involve any commitment to any
specific project (CEQA Guidelines Section 15378(b)(4)), and because it can be seen
with certainty that there is no possibility that the Area Standard Wages provisions may
have a significant effect on the environment, in that this Resolution contains no
provisions modifying the physical design, development, or construction of residences
or nonresidential structures (CEQA Guidelines Section 15061(b)(3)).
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RESOLUTION NO. 76-2017
17. This Resolution shall take effect on September 1, 2017 but only if the Commercial
Linkage Fee Ordinance is adopted and effective prior to that date.
I, Meaghan Hassel -Shearer, City Clerk of the City of Burlingame, do hereby certify that the
foregoing Resolution was adopted by the City Council at its regular meeting on the 3`d day of
Judy, 2017 by the following vote:
AYES: COUNCILMEMBERS: BEACH, BROWNRIGG, COLSON, KEIGHRAN, ORTIZ
NOES: COUNCILMEMBERS: NONE
ABSENT:COUNCILMEMBERS: NONE
Meaghan Hassel -Shearer, City Clerk
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