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Contracts for public projects are subject to the requirements of this chapter, in addition to the requirements of chapter 3.56 and the city's administrative policies. (Ord. 2024-0010 § 6)
A. Intent. Senate Bill 974, Chapter 832 of Statutes, 2001, added section 1100.7 to the California Public Contract Code, which provides that all provisions of the California Public Contract Code apply to charter cities unless a particular city's charter or ordinances expressly exempt the city from those provisions. In enacting this section, the city specifically declares itself exempt from any and all provisions of the California Public Contract Code except as specified in this section.
B. Declaration of general exemption. The city declares that it is exempt from all provisions of the California Public Contract Code including those provisions specified in subsection C, except for:
1. Those California Public Contract Code provisions that have been judicially declared to be matters of statewide concern in a final appellate court decision;
2. Those provisions specified in subsection D;
3. Those provisions that are specifically and expressly included in and made applicable to the city by a contract;
4. Those provisions that the city specifically and expressly agrees are applicable to the city as a condition to receipt of state funding or a required state approval; and
5. Those provisions that are made expressly applicable to the city by resolution adopted by the city council.
C. Specific exemptions from California Public Contract Code. The city is exempt from the following provisions of the California Public Contract Code:
1. Division 2, part 1, chapter 6, sections 6100 through 6108, inclusive;
2. Section 7102;
3. Section 7103;
4. Section 7104;
5. Section 9203;
6. Division 2, part 2, sections 10100 et seq.;
7. Division 2, part 3, chapter 1, sections 20100 et seq., except as set forth in subsection D;
8. Division 2, part 3, chapter 1.5, sections 20930 et seq.;
9. Division 2, part 3, chapter 2, sections 22000 et seq.;
10. Division 2, part 3, chapter 2.5, sections 22050 et seq.;
11. Division 2, part 3, chapter 3, sections 22101 et seq.
D. Applicable provisions. The city is subject to the following provisions of division 2, part 3, chapter 1 of the California Public Contract Code:
1. Section 20103.5;
2. Section 20103.8;
3. Section 20104.50;
4. Section 20104.70;
5. Article 27;
6. Article 29;
7. Article 30;
8. Article 31;
9. Article 32;
10. Article 54;
11. Article 56;
12. Article 57;
13. Article 58;
14. Article 59. (Ord. 2024-0010 § 6)
The city council shall, from time to time, adopt standard specifications setting forth terms and controls for public project contracts and the bidding and award thereof. The standard specifications must conform to the purposes and intent of this chapter, and must include the following:
A. Bid forms and requirements governing the proper completion thereof by the bidder;
B. Bid security forms and requirements for the use thereof, including forfeiture in certain cases and return to unsuccessful bidders;
C. Faithful performance bond forms and requirements;
D. Payment bond forms and requirements;
E. Labor and material bond forms and requirements;
F. Terms governing the time to complete the contract, extending the time to complete the contract, and liquidated damages; and
G. Terms governing a failure of completion by the contractor, payment of the contractor for work performed in the event of failure, and the completion of the contract in such instance. (Ord. 2024-0010 § 6)
Every contract for any construction project, as defined in Section 1782 of the California Labor Code, to be performed within the state at the expense of the city, or paid out of city moneys, whether such work be done directly under contract award, or indirectly by or under subcontract or by any other arrangement whatsoever, must provide, in addition to other provisions required by law, that any person performing labor in the state in performance of such contracts, subcontracts, or any other arrangement, shall be paid not less than the general prevailing rate of wages; provided, however, that the requirement to pay the general prevailing rate of wages shall not apply to: (a) contracts for any construction project originally awarded or executed in an amount of $25,000 or less; (b) contracts for any alteration, demolition, repair, or maintenance work originally awarded or executed in an amount of $15,000 or less; (c) materials for which no manufacturing plant exists in the city; or (d) standard materials or commodities carried in stock by dealers or manufacturers generally.
The general prevailing rate of wages shall be the general prevailing rate of wages for the area in which the city is located as determined by the director of the department of industrial relations pursuant to California Labor Code section 1773. Every contract for which the payment of the general prevailing rate of wages is required shall provide that the determination of the director of the department of industrial relations in force at the time the notice to bidders is published with respect to the general prevailing rate of wages in private employment in the city for similar work shall be binding upon the parties any contract awarded as a result of such notice. If any worker is paid less than the general prevailing rate of wages for the work or craft in which the worker is employed by the contractor or any subcontractor for any work done under the contract, the city may withhold contract payments equal to the amount of underpayment. In addition, the contractor shall forfeit as a penalty to the city not more than $50 for each calendar day, or portion thereof, for each worker paid less than the general prevailing rate of wages, as determined by the director of the department of industrial relations, for the work or craft in which the worker is employed by the contractor or any subcontractor for any work done under the contract, and every contract shall have inserted therein a clause to that effect.
In the performance of the contract, eight hours shall be the maximum hours of labor on any calendar day, and 40 hours shall be the maximum hours of labor during any one calendar week. Work performed by employees of contractors in excess of eight hours per day, and 40 hours during any one week, is permitted upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay. The contractor shall as a penalty forfeit $25 for each worker employed in the execution of the contract by the contractor or by any subcontractor for each calendar day during which the worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this section.
To the extent that there is insufficient money due a contractor to cover all penalties forfeited and amounts due in accordance with this section, and in all cases where the contract does not provide for a money payment by the city to the contractor, the city shall provide notice of the violation to the director of industrial relations, division of labor standards enforcement, for commencement an enforcement action pursuant to California Labor Code, section 1775.
Out of any money withheld or recovered, pursuant to this section, there shall first be paid the amount due each worker, and if insufficient funds are withheld, recovered, or both to pay each worker in full, the money shall be prorated among all workers. At the expiration of 90 days after the completion of the contract and the formal acceptance of the project, all penalties or forfeitures withheld or recovered pursuant to this section shall be deposited in the city's general fund.
Every contractor or subcontractor, or any firm, corporation, partnership or association in which the contractor or subcontractor has a substantial interest who is found by the city manager to be in willful violation of the provisions of this chapter with intent to defraud shall be ineligible to bid on or receive a contract paid out of moneys deposited in the city's treasury for a period of not more than five years from the date such determination is made by the city manager.
The specifications for any contract that requires the payment of the general prevailing rate of wages under this section shall include a statement that a copy of the current director of industrial relations prevailing wage determination will be made available to any interested party on request.
Every contract falling under the terms of this section shall contain a provision that requires the contractor to insert into every subcontract or subagreement entered into, provisions identical with the provisions set forth in the contract pursuant to this chapter regarding compliance with the requirements for wage rates, hours of labor, and requirements for the employment of apprentices. The stipulations shall fix the responsibility of compliance with sections 3.60.040 and 3.60.050 of this chapter with the prime contractor. (Ord. 2024-0010 § 6)
A. All public project contractors and subcontractors shall comply with Sections 1777.5, 1777.6, and 1777.7 of the California Labor Code and city policies governing the employment of apprentices. This subsection does not apply to construction contracts and subcontracts that are advertised for bid or awarded before December 25, 2014, including, contracts and subcontracts for the construction of public improvements that are to be funded in whole or part through a community facilities district.
B. Contractors and subcontractors shall not discriminate among otherwise qualified employees as apprentices on the ground of age, ancestry, color, disability, genetic information, gender (including gender identity and gender expression), marital status, medical condition, national origin, race, religion, sex, or sexual orientation. The prime contractor is responsible for complying with these provisions for all apprenticeable occupations.
C. If a public project contractor or subcontractor fails to comply with this section, the city may report the contractor or subcontractor to the Department of Industrial Relations and the California Apprenticeship Council for action as necessary under Section 1777.7 of the California Labor Code.
D. All public improvements within a private development project that are constructed in compliance with this section and section 3.60.040 are eligible for public funding, including, funding through a community facilities district, so long as all other relevant requirements have been satisfied or waived in accordance with law. (Ord. 2024-0010 § 6)
If a contractor requests substitution of securities for withheld funds pursuant to section 22300 of the California Public Contract Code, the contractor shall pay any and all costs, fees, or other charges that are authorized or required. (Ord. 2024-0010 § 6)