Thursday, August 26, 2021

The San Diego County Board of Supervisors has proposed a new building trades requirement for San Diego County projects--Fair Employment Standards on County Construction Projects, and County-Owned Leased Property.

On July 13, 2021, the San Diego County Board of Supervisors discussed a new building trades encouraged requirement on County construction projects called the Fair Employment Standards on County Construction Projects, and County-Owned Leased Property. The Board directed the County’s Chief Administrative Officer (CAO) to return to the Board in 90 days with a draft “Working Families Ordinance,” prequalification policy, proposed amendments to existing policies, and a report on the estimated impact of implementing the Working Families Ordinance on County construction projects and County-owned leased property.
 
If adopted by the Board, the proposed ordinance would impact prospective contractors and subcontractors on County public works contracts. Essential items of note in the proposed ordinance include:

Any contractor and its subcontractors (at any level) performing construction under a contract that is greater than $500,000 that the County awards following the Public Contract Code (“County Construction Contracts”) shall:
 
·        Pay employees the higher of any prevailing wage rates set by the California Department of Industrial Relations, minimum wage, living wage or similar wage rates set by the County by ordinance, and local, State, or federal minimum or similar wage rates if applicable to the work.

 Utilize a skilled and trained workforce to complete County Construction Contracts as outlined in Public Contract Code 2600.

·        Provide employees working on County Construction Contracts with paid sick leave, which will minimally accumulate up to 56 hours per year.

If adopted by the Board, the proposed ordinance will impact parties that lease, sublease, license, or conduct business on County-owned property. Essential items of note in the proposed ordinance include:
 
·        Employees and contractors working on or from County-owned property shall be paid the higher of any prevailing wage rates set by the California Department of Industrial Relations; minimum wage, a living wage, or similar wage rates that the County may establish by ordinance; and local, State, or federal minimum or similar wage rates if applicable to the work.

Lessee Parties (as defined in the draft of the proposed ordinance) will provide their employees working on or from County-owned property with paid sick leave, which will minimally accumulate up to 56 hours per year.
 
The Board also directed the CAO to return to the Board with a prequalification policy for prospective bidders and proposers on public works contracts in alignment with the model questionnaire developed by the State Department of Industrial Relations

The meeting date for the Board’s consideration and approval of the Working Families Ordinance is Tuesday, October 5, 2021.

To gauge how the proposed ordinance would impact business, county staff is seeking input before August 31, 2021, from parties that lease and conduct business on County-owned property. Contractor participation would assist in determining the estimated impact of implementing the Working Families Ordinance in the County staff response to the Board.

 
Attached is a copy of the San Diego County Board of Supervisors Board Letter and draft ordinance that the Board is considering. Before the Board meeting on October 5, 2021, there are multiple ways that you can provide input regarding the proposed ordinance and how the ordinance might impact your business.
 
Virtual Roundtable

In advance of the October 5, 2021 meeting, the County has scheduled a virtual “Contractor Roundtable Discussion” on Friday, August 27, 2021, from 2 pm to 3 pm. WECA members are encouraged to attend this virtual roundtable, and the Zoom link is provided below. During this meeting, the County staff seek verbal comments from contractors regarding how the proposed ordinance might impact your business.
 
Please use this Zoom link or phone number to access the virtual meeting:
 
Join Zoom Meeting:
https://us06web.zoom.us/j/82167129827?pwd=ZmhwSVdpVWNDTDgyZEJ6QTB5NDlXQT09
Meeting ID: 821 6712 9827
Passcode: 503910
 
Phone:
+1 669 900 6833 US (San Jose)
Meeting ID: 821 6712 9827
Passcode: 503910

In September, we will be following up with additional steps contractors can take to engage the Board on this proposal.

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