To: HONORABLE MAYOR AND From: Kay Winer

CITY COUNCIL

Subject: CONVENTION CENTER RFP Date: September 26, 2003

TIMELINE

REASON FOR SUPPLEMENTAL

To respond to questions raised by the Rules Committee at its September 24, 2003 meeting regarding the City’s Wage Policies as they may relate to the RFP for the Convention Center and other cultural facilities.

BACKGROUND

The information below is an overview of the City’s Living and Prevailing Wage Policies and how these apply to the RFP for the management of the Convention Center and other cultural facilities.

City Council Wage Policies

Living Wage Policy – City Council Resolution 68900

Living Wage means the wages paid under a collective bargaining agreement or the then current Living Wage Rate set by the City, whichever is higher, unless the collective bargaining agreement expressly provides that the agreement shall supercede the requirements of the Living Wage Policy. The current Living Wage Rate is:

1. If health insurance benefits are provided, a wage of not less than $10.31/hour.

2. If health benefits are not provided, a wage of not less than $11.56/hour.

Prevailing Wage – City Council Resolution 61144

Prevailing Wage means the wages paid under a collective bargaining agreement between the Contractor and a recognized union representing workers who perform services pursuant to the agreement. If there is no collective bargaining agreement, not less than the prevailing rate of per diem wages for the employee craft/classification as determined by the City’s Office of Equality Assurance.

It is the policy of the City that in any contract entered into under the circumstances set forth that not less than the general prevailing wage of per diem wages as defined in the California Labor Code shall be required to be paid for the following contracts:

1. City public works construction projects funded in whole or in part by City funds, where work is performed pursuant to any public works construction contract to which the City is a party;

2. City maintenance projects of a routine, recurring or usual nature for the preservation, protection and keeping of City owned buildings, structures and ground facilities, where work is performed pursuant to contracts to which the City is a party and which exceed the contractual amount of $1,000; and

3. Direct services which are provided under contract to the City – residential street sweeping; food services; parking lot management services; and janitorial or custodial services.

Living Wage Policy Provisions

The living wage policy mandates the following provisions:

Wage Requirements - A minimum level of compensation for workers employed by contractors and subcontractors who are awarded certain City service and labor contracts with an expenditure in excess of $20,000 and recipients who receive direct monetary financial assistance from the City in the amount of $100,000 or more in any twelve month period, and excluding non-profit corporations. These service include the following categories: automotive repair and maintenance; facility and building maintenance; food services; janitorial and custodial; landscaping; laundry services; office and clerical (courier, mailing, photographic, printing, collections); parking lot management; pest control; operation, programming and maintenance of recreational facilities; security; shuttle transportation; street sweeping; towing; moving services; fabrication and installation of City signs; maintenance of City owned equipment; and any other service or labor determined by the Director of the Office of Equality Assurance to meet the intent of the policy.

Employee Retention - Employee retention requirements apply to contracts over $50,000, and require the new contractor to retain workers who have been performing the City services under the previous contractor. Employee retention applies to the Operator and Subcontractors, and provides for the continuation of the following services/contract: food services; janitorial and custodial services; shuttle transportation; parking lot management; City wide street sweeping; operation, programming and maintenance of recreational facilities; and any other service or labor determined by the Director of the Office of Equality Assurance to meet the intent of the Policy.

Third Tier Review - All service or labors contracts subject to this policy are required to undergo what is commonly referred to as “Third Tier Review.” This is the process under which the City considers the proposer’s history as an employer and working condition commitments by evaluating an Employee Work Environment Questionnaire. If the questionnaire is not returned, the proposal will be deemed to be non-responsive.

Labor Peace - Labor peace requirements apply to contracts subject to this policy when the Office of Equality Assurance determines the level of vulnerability of the proposed contract to service or labor disputes and the degree to which labor peace is essential to the proprietary interests of the City. Proposers will need to include in their proposals how they will assure that no labor dispute or unrest will occur during the term of the City contract. Failure to address this topic in the proposal will deem the proposal non-responsive.

ANALYSIS

Council policy direction may require the operation and management of the Convention Center and other cultural facilities to occur pursuant to the City’s wage requirements and policies. As noted in the original RFP Timeline Memo dated September 20, 2003, the timeline assumes the retention of current Council policies and service contracts as they relate to the Convention Center and other cultural facilities. These include the Theater Booking Guidelines; Convention Center Booking Policy; Rates Resolutions as well as the Living/Prevailing Wage Policies. In addition, the Concessionaire Contract, Network Services Contract, and the Parking Garage Contract will be retained until the expiration of the contracts at which time an extension to the contracts may be negotiated. Currently employees who fall under the Concessionaire Contract as well as the Parking Contracts are subject to Prevailing Wage requirements. When the RFP is issued, prevailing and living wage requirements will be included along with the applicable wage rates for those covered work classifications performed by the operator and any of its subcontractors as prepared by the Office of Equality Assurance.

PUBLIC OUTREACH

N/A

COORDINATION

This memorandum has been coordinated with the Department of Cultural Arts and Entertainment, the Department of Public Works/Office of Equality Assurance, and the City Attorney’s Office.

CEQA

Not a Project

Kay Winer

Deputy City Manager