SR 12-15-2020 3E
City Council Report
City Council Meeting: December 15, 2020
Agenda Item: 3.E
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Procurement
Subject: Approval of Third Modification to Gafcon Contract to Provide Citywide State
and Federal Labor Compliance and Payroll Monitoring
Recommended Action
Staff recommends that the City Council authorize the Interim City Manager to negotiate
and execute a third modification to agreement #10435 with Gafcon, Inc. that would
extend the contract by two years and add $600,000 to provide citywide State and
Federal labor compliance and certified payroll monitoring on an as-needed basis. This
will result in a seven-year agreement with a new total amount not to exceed $1,500,000,
with future year funding contingent on Council budget approval.
Summary
In May of 2016, staff executed an agreement #10435 with Gafcon Inc. to provide
certified payroll monitoring services that were subject to the State and Federal
prevailing wage requirements mandated for all Public Works projects by State law.
Gafcon is currently monitoring 142 active projects citywide. Their services consist of job
classification selection at time of solicitation, on-site interviews of workers, certified
payroll compliance monitoring and, if needed, enforcement. Gafcon has extensive
experience and knowledge of labor laws, apprentice program requirements, and other
requirements to ensure compliance with State and Federal regulations. Staff
recommends a third modification to extend agreement #10435 for two additional years
with up to $600,000 in additional funding to provide citywide State and Federal labor
compliance and certified payroll monitoring on an as-needed basis for a new not to
exceed $1,500,000 seven-year agreement. The two-year term extension would ensure
that staff has ample time to go through the RFP process and continue its labor
compliance and reporting, activities disrupted this year by the COVID pandemic.
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Discussion
Two 2014 California laws (SB 7 and SB 854) define prevailing wage requirements and
establish responsibilities for prevailing wage payment. City prevailing wage projects
include construction and maintenance of public buildings, housing, public work
infrastructure and similar facilities, and could include projects funded in part or in
whole by Federal or State grants. The City must: 1) award public works bids in
compliance with the law and report these bid awards to the California Department of
Industrial Relations (DIR); and 2) ensure contractors/ subcontractors register with the
DIR and provide certified payroll records to the Labor Commissioner.
The laws require prevailing wage payment to certain labor categories identified in the
State of California Labor Code (commencing in Section 1770 et seq.) when employed
for any work on or in the execution of a Public Works project. Gafcon ensures that the
Prime Contractor and Subcontractors comply with all California Labor Codes as
outlined by the DIR. During the span of a project, Gafcon assists with the following:
• Audit of certified payroll records to assure compliance with laws/regulations;
• Compliance with apprenticeship laws/regulations and training fund contributions;
• Identifies labor compliance violations and resolves issues and calculates
applicable penalties/fines;
• Conducts on-site inspections and worker interviews;
• Provides the City progress payment and withhold recommendations based on
the contractor's compliance with labor laws/regulations through project close-out.
Gafcon has agreed to honor their pricing for the two additional years. The modification
amount is based on a monthly spending average of $25,000 by Departments and
Divisions for a number of City prevailing wage projects. The recommended contract
modifications would enable the City to continue prevailing wage and labor compliance
for current Public Works projects and COVID-19 related projects throughout the City.
Past Council Actions
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Meeting Date Description
03/27/18
(attachment A)
Second Modification to Gafcon Contract for Citywide Prevailing
Wage and Labor Compliance in the amount of $600,000
02/28/17
(attachment B)
First Modification to Gafcon Contract for Citywide Prevailing
Wage and Labor Compliance in the amount of $220,000
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from various funds to increase the amount of
agreement #10435 with Gafcon Inc. by $600,000 to provide citywide State and Federal
labor compliance and certified payroll monitoring on an as-needed basis. Funds are
available within existing budgets and would be charged to the appropriate Division or
project account based on request for oversight and labor compliance services. Future
year funding is contingent on Council budget approval.
Contract/Agreement/Purchase Order Modification Request
Agreement #
Current Authorized
Amount
FY 2020-21 Budget Modified
Request Amount
Dept/CIP
Account #
Total Revised
Contract Amount
10435 $900,000 $600,000 Various $1,500,000
Prepared By: Araceli Esparza, Purchasing Services Manager
Approved
Forwarded to Council
Attachments:
A. 2nd Modification to Gafcon Contract (Weblink)
B. 1st Modification to Gafcon Contract (Weblink)
C. Gafcon Oaks Initiative
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CITY OF SANTA MONICA
OAKS INITIATIVE NOTICE
NOTICE TO APPLICANTS, BIDDERS, PROPOSERS
AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS,
OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA
Santa Monica’s voters adopted a City Charter amendment commonly known as
the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and
information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s
text from the City Clerk.
This information is required by City Charter Article XXII—Taxpayer Protection. It
prohibits a public official from receiving, and a person or entity from conferring, specified
personal benefits or campaign advantages from a person or entity after the official votes,
or otherwise takes official action, to award a “public benefit” to that person or entity. The
prohibition applies within and outside of the geographical boundaries of Santa Monica.
All persons or entities applying or receiving public benefits from the City of Santa
Monica shall provide the names of trustees, directors, partners, and officers, and names
of persons with more than a 10% equity, participation or revenue interest. An exception
exists for persons serving in those capacities as volunteers, without compensation, for
organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the
Internal Revenue Code. However, this exception does not apply if the organization is a
political committee or controls political committees. Examples of a “public benefit” include
public contracts to provide goods or services worth more than $25,000 or a land use
approval worth more than $25,000 over a 12-month period.
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an
entity, rather than an individual person, the information includes the name of every person
who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent
interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks
Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This
information must be updated and supplied every 12 months.
DocuSign Envelope ID: 2407E7E4-7C93-446A-85D9-237C6FF1AE19
3.E.c
Packet Pg. 166 Attachment: Gafcon Oaks Initiative (4337 : 3rd Modification to Gafcon Contract)
CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1.Personal services contracts in excess of $25,000 over any 12-month period;
2.Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3.Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4.Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5.Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6.Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7.Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
James Baum Chief Financial Officer
jbaum@gafcon.com 858-8750010
GAFCON, INC.
Robin Duveen-President & COO, Yehudi Gaffen-CEO, James Baum-CFO,
Paul Najar-VP&General Council, Pam Gaffen-Director.
Yehudi A. Gaffen & Pamela S. Gaffen, Trustees of the Gaffen Family Trust;
Pamela S. Gaffen, Trustee of the Pam Gaffen 2012 Exempt Trust
DocuSign Envelope ID: 2407E7E4-7C93-446A-85D9-237C6FF1AE19
11/16/2020
3.E.c
Packet Pg. 167 Attachment: Gafcon Oaks Initiative (4337 : 3rd Modification to Gafcon Contract)