HomeMy WebLinkAboutStaff Report 3.C 05/15/2017Agenda Item #3.0
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DATE: May 15, 2017
TO:
FROM:
SUBJECT:
Honorable Mayor and Members of the City Council
John C. Brown, City Manager
Resolution Opposing AB 1250
RECOMMENDATION
It is recommended the City Council adopt the attached Resolution Opposing, and authorizing the
Mayor to execute a letter opposing, Assembly Bill 1250 (Jones -Sawyer).
BACKGROUND
Assembly Bill 1250 (Attachment 3), was authored by Assemblymember Jones -Sawyer and
introduced on February 17, 2017. The bill was amended as recently April 25, 2017. AB 1250
allows counties, cities, and county and city agencies to contract for personal services currently or
customarily performed by county or city employees only when specified conditions are met.
DISCUSSION
Petaluma, like the majority of California cities, is a member of the League of California Cities
and takes advantage of its various services, including legislative analysis and advocacy. Our
League representative recently contacted us to warn of the negative effects of AB 1250 that
would impair a city's ability to contract for professional services, and to encourage Petaluma to
oppose the bill. Among the most burdensome provisions of the measure, AB 1250 would:
• Require a city or county to perform a full cost -benefit analysis of the potential impacts
of outsourcing, before entering into or renewing a contract.
• Mandate a city to conduct a full cost -benefit analysis and environmental impact
analysis caused by contracting for the services.
• Require a city to conduct an annual performance audit of each contract.
• Eliminate local agency hiring discretion by limiting a local agencies' ability to utilize a
contract for the sole purpose of cost savings through salaries and benefits.
• Require that the agency provide an orientation to contract non -city employees.
• Require a city to create a new, fully searchable, database that must be posted on the city
website for certain contracts. This database must include:
o The names, job titles, salary of each contracted non -city employee and
subcontractors.
o The services of the contract, the name of the agency department or division of
the city who manages the contract.
o The amount paid to the contract including the total projected cost of the
contract for all fiscal years and the funding source.
o The total number of "full time equivalent" employees being contracted out.
Based on factors including increased workload, costs, and reporting requirements; privacy
concerns; and potential for litigation created by the measure, the League indicates AB 1250
would place a significant burden on the City and create a de facto ban on virtually all contracting
services. For those reasons, Council is respectfully requested to adopt the attached resolution
opposing AB 1250 and authorizing the Mayor to execute a letter to Assemblymember Jones -
Sawyer. A draft letter has been composed and is also attached for your review and approval.
Joining the League of California Cities in opposing this Bill are the California Contract Cities
Association and over 100 individuals cities and organizations.
FINANCIAL IMPACT
Because the City contracts for a variety of services and will want to do so in the future, AB 1250
would have a significant fiscal impact. That impact is not quantifiable at this time.
ATTACHMENTS
1. Resolution
2. Draft Letter of Opposition
3. AB 1250, as amended
2
ATTACHMENT 1
RESOLUTION OPPOSING ASSEMBLY BILL 1250
WHEREAS, Assembly Bill 1250 (Jones -Sawyer) was introduced in the Assembly on
February 17, 2017, and most recently amended on April 25, 2017; and
WHEREAS, the Bill requires a city, before entering a contract or renewing a contract,
to perform a frill cost -benefit analysis of the potential impacts of outsourcing, including the
impact on local businesses if consumer spending power is reduced; and
WHEREAS, the Bill mandates a city to conduct a full cost -benefit analysis and
environmental impact analysis caused by contracting for the services; and
WHEREAS, the Bill forces a city to conduct an annual audit of each contract; and
WHEREAS, the Bill eliminates local agency hiring discretion by limiting a local
agencies' ability to utilize a contract for the sole purpose of cost savings through salaries and
benefits; and
WHEREAS, the Bill requires a city to provide an orientation to contract non -city
employees; and
WHEREAS, the Bill requires a city to create a new, fully searchable database that must
be posted on the city website for certain contracts, creating privacy concerns about posting full
names, job titles, and salaries of non -city employees and subjecting the City to liability from
associated lawsuits; and
WHEREAS, the Bill places substantial burdens on local government by adding onerous,
over -prescriptive, costly and unnecessary requirements, and which infringe on local control; and
WHEREAS, AB1250, if enacted, will effectively eliminate almost all contracting
services for cities and counties, and would threaten the mission of local governments to provide
vital local services efficiently and economically; and
WHEREAS, all California cities need to retain flexibility in how we deliver quality
services to residents.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma opposes AB 1250, and authorizes the Mayor to execute a letter expressing that
opposition.
ATTACHMENT 2
May 16, 2017
The Honorable Reginald Jones -Sawyer, Sr.
California State Assembly
State Capitol Building, Room 2117
Sacramento, CA 95814
VIA FAX: 916-319-2159
RE: OPPOSE AB 1250. Counties and Cities: Contracts for Personal Services
Dear Assembly Member Jones -Sawyer:
At its regular meeting of May 15, 2017, the Petaluma City Council adopted the attached
resolution, opposing Assembly Bill 1250. The Bill, if enacted, would effectively eliminate
almost all contracting services for cities and counties, and would threaten the mission of local
governments to provide vital local services in an efficient and economical way.
In Petaluma, deep budget cuts during the recession forced changes to our service delivery
models. These were done mainly for the cost savings they provided and were one very effective
way in which we were able to preserve core services. Whereas we provided virtually all our city
services with City employees in 2008, in the four years that followed we contracted out several
functions. The most prominent of those include Current Planning, Animal Services, aquatics and
recreation programs, and custodial services, although the areas in which we contract for
professional services are far more extensive. Despite economic recovery, Petaluma's General
Fund budget is still 10 percent less than it was in 2008 and we can no more afford today to re-
establish, in-house, the services that were contracted than we were able to preserve them in-
house a decade ago.
As amended, AB 1250 places substantial burdens on local agencies by adding onerous, over
prescriptive, unnecessary, and costly requirements that impede on local control and have
significant impacts on local governance. For example, AB 1250 would require a city, before
entering a contract or renewing a contract, to perform a full economic analysis of the potential
impacts of outsourcing, including the impact on local businesses if consumer spending power
(among other factors is reduced). AB 1250 also mandates a city to conduct a full environmental
impact analysis caused by contracting for the services. Further, the measure forces a city to
conduct an annual audit of each contract and prohibits a city from renewing or granting a new
contract before the report is released and considered by the council.
AB 1250 requires an agency to provide an orientation to contracted employees. Requiring a local
agency to provide an orientation to non -city employees create significant cost, logistical
concerns. It also works to blur the lines between contracted and regular city employees, creating
potentials for additional PERS liability at a time when local agencies are already straining under
the costs of that system.
4
As well, AB 1250 would require a city to create a new, fully searchable database that must be
posted on the city website which will include substantive and sensitive information including the
names, job titles, salary of each contracted employee (and subcontractors) and services of the
contract, the name of the agency department or division of the city who manages the contract.
There are significant privacy concerns with these posting requirements for non -city employees,
including litigation from those private citizens who don't want their information made public.
Finally, AB 1250 applies joint and several liabilities for employment law violations arising from
performance of the contractor, and for torts committed by the contractor or any of its
subcontractors in the course of providing services under the contract. This would place overly
restrictive requirements on cities and potentially open that agency up to litigation.
Petaluma, like many cities, continues to face difficult budget conditions, compounded by State
takeaways including the loss of redevelopment and expanding pension and retiree health care
obligations. This measure dog -piles onto that problem and moves us several steps nearer to the
brink of fiscal insolvency
In the aggregate, the workload, privacy, cost, and liability concerns created by this measure place
an overwhelming and significant burden on Cities, and would create a de facto ban on
contracting virtually any services.
For these reasons the City Council of the City of Petaluma must oppose Assembly Bill 1250.
Sincerely,
David Glass
Mayor
cc: Assemblymember Marc Levine
Senator Bill Dodd
Nancy Hall Bennett, League of California Cities, nbennett@cacities.org
Michael Bolden, Chief Consultant, Assembly Committee Public Employees, Retirement, and Social
Security
Joshua White, Consultant, Assembly Republican Caucus
Camille Wagner, Legislative Secretary, Office of Governor Edmund G. Brown Jr.
Meg Desmond, League of California Cities, mdesmond@cacities.org
Today's Law As Amended
ATTACHMENT 3
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A13-1250 Counties and cities: contracts for personal services. (2017-2018)
SECTION 1. Section 31000.10 is added to the Government Code, to read:
31000.10. The purpose of this section and Section 31000.11 is to establish standards for the use of personal
services contracts by counties.
(a) If otherwise permitted by law, a county or county agency may contract for personal services currently or
customarily performed by county employees when all the following conditions are met:
(1) The board of supervisors or county agency clearly demonstrates that the proposed contract will result in
actual overall cost savings to the county for the duration of the entire contract as compared with the county's
actual costs of providing the same services, provided that:
(A) In comparing costs, there shall be included the county's additional cost of providing the same service as
proposed by a contractor. These additional costs shall include the salaries and benefits of additional staff that
would be needed and the cost of additional space, equipment, and materials needed to perform the function.
(e) In comparing costs, there shall not be included the county's indirect overhead costs unless these costs can be
attributed solely to the function in question and would not exist if that function was not performed in county
service. Indirect overhead costs shall mean the pro rata share of existing administrative salaries and benefits,
rent, equipment costs, utilities, and materials.
(C) In comparing costs, there shall be included in the cost of a contractor providing a service any continuing
county costs that would be directly associated with the contracted function. These continuing county costs shall
include, but not be limited to, those for inspection, supervision, and monitoring.
(2) Proposals to contract out work shall not be approved solely on the basis that savings will result from lower
contractor pay rates or benefits. Proposals to contract out work shall be eligible for approval if the contractor's
wages are at the industry's level and do not significantly undercut county pay rates.
(3) The contract does not cause the displacement of county employees. "Displacement" includes layoff, demotion,
involuntary transfer to a new class, involuntary transfer to a new location requiring a change of residence, and
time base reductions. "Displacement" does not include changes in shifts or days off or reassignment to other
positions within the same class and general location.
(4) The contract does not cause vacant positions in county employment to remain unfilled.
(5) The contract does not adversely affect the county's affirmative action efforts.
(6) The savings shall be large enough to ensure that they will not be eliminated by private sector and county cost
fluctuations that could normally be expected during the contracting period.
(7) The amount of savings clearly justifies the size and duration of the contracting agreement.
(8) The contract is awarded through a publicized, competitive bidding process. The county shall reserve the right
to reject any and all bids or proposals.
(9) The contract includes specific provisions pertaining to the qualifications of the staff that will perform the work
under the contract, as well as assurance that the contractor's hiring practices meet applicable nondiscrimination,
affirmative action standards.
(10) The potential for future economic risk to the county from potential contractor rate increases is minimal.
(11) The contract is with a firm. "Firm" means a corporation, partnership, nonprofit organization, or sole
proprietorship,
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(12) The potential economic advantage of contracting is not outweighed by the public's interest in having a
particular function performed directly by county government. Before executing a contract for personal services
under this section, the county shall demonstrate that outsourcing the particular functions at issue is in the public
interest, addressing the cost of the contract, the cost of administering the contract, the effect on the quality of
services provided to the public, and any other relevant circumstances.
(13) The contract shall provide that it may be terminated at any time by the county without penalty if there is a
material breach of the contract and notice is provided at least 30 days before termination.
(14) The county shall provide an orientation to employees of the contractor who will perform services pursuant to
the contract. The orientation shall include, but is not limited to, all of the following:
(A) A description of the services to be provided pursuant to the contract.
(B) A description of the function and goals of the public agency responsible for providing the services in the
absence of the contract.
(C) Any applicable rules governing provision of the services and how the employee may report violations of
applicable rules or contractual requirements.
(15) If the contract is for personal services in excess of one hundred thousand dollars ($100,000) annually, all of
the following shall occur:
(A) The county shall require the contractor to disclose all of the following information as part of its bid,
application, or answer to a request for proposal:
(i) A description of all charges, claims, or complaints filed against the contractor with any federal, state, or local
administrative agency during the prior 10 years.
(ii) A description of all civil complaints filed against the contractor in any state or federal court during the prior 10
years.
(iii) A description of all state or federal criminal complaints or indictments filed against the contractor, or any of
its officers, directors, or managers, at any time.
(iv) A description of any debarments of the contractor by any public agency or licensing body at any time.
(v) The total compensation, including salaries and benefits, the contractor provides to workers performing work
similar to that to be provided under the contract.
(vi) The total compensation, including salaries, benefits, options, and any other form of compensation, provided
to the five highest compensated officers, directors, executives, or employees of the contractor.
(vii) Any other information the county deems necessary to ensure compliance with this section.
(B) Prior to entering into the contract, the county shall conduct, and make public, a cost -benefit analysis
considering the potential impact of outsourcing the work covered by the contract. The analysis shall include:
(i) The potential loss of employment opportunities within the county and resultant loss of income to workers.
(ii) The impact on local businesses if consumer spending power is reduced as a result of reduced wages under the
contract.
(iii) The impact on the county's ability to provide social services and the effect of any reduction in social services
on county residents.
(iv) Potential impacts on the environment, if any.
(C) Prospective contractors shall reimburse the county for the cost of the cost -benefit analysis.
(D) The contract shall provide that the county is entitled to receive a copy of any records related to the
contractor's or any subcontractor's performance of the contract, and that any of those records shall be subject to
the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1). In
furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance
of the contract that ordinarily would be maintained by the county in performing the same functions.
(E) The county shall include in the contract specific, measurable performance standards and provisions for a
performance audit by the county, or an independent auditor approved by the county, to determine whether the
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performance standards are being met and whether the contractor is in compliance with applicable laws and
regulations. The county shall not renew or extend the contract prior to receiving and considering the audit report.
(F) (1) The contract shall include provisions for an audit by the county, or an independent auditor approved by
the county, to determine whether and to what extent the anticipated cost savings have actually been realized.
The county shall not renew or extend the contract before receiving and considering the audit report.
(2) The contractor shall reimburse the county for the cost of the audit.
(b) This section does not preclude a county from adopting more restrictive rules regarding the contracting of
public services.
(c) When otherwise permitted by law, the absence of any requirement of subdivision (a) shall not prevent
personal services contracting when any of the following conditions are met:
(1) The contract is for a new county function and the Legislature has specifically mandated or authorized the
performance of the work by independent contractors.
(2) The contract is between the county and another government entity for services to be performed by employees
of the other government entity.
(3) The services contracted cannot be performed satisfactorily by county employees, or are of such a highly
specialized or technical nature that the necessary expert knowledge, experience, and ability are not available
among county employees.
(4) The services are incidental to a contract for the purchase or lease of real or personal property. Contracts
under this criterion, known as "service agreements," shall include, but not be limited to, agreements to service or
maintain office equipment or computers that are leased or rented.
(5) The legislative, administrative, or legal goals and purposes cannot be accomplished through the utilization of
county employees. Contracts are permissible under this criterion to protect against a conflict of interest or to
ensure independent and unbiased findings in cases where there is a clear need for a different, outside
perspective. These contracts shall include, but not be limited to, obtaining expert witnesses in litigation.
(6) The nature of the work is such that the standards of this part for emergency appointments apply. These
contracts shall conform with Section 31000.4.
(7) Public entities or officials need private counsel because a conflict of interest on the part of the county
counsel's office prevents it from representing the public entity or official without compromising its position. These
contracts shall require the written consent of the county counsel.
(8) The contractor will provide equipment, materials, facilities, or support services that could not feasibly be
provided by the county in the location where the services are to be performed.
(9) The contractor will conduct training courses for which appropriately qualified county employee instructors are
not available, provided that permanent instructor positions in academies or similar settings shall be filled by
county employees.
(10) The services are of such an urgent, temporary, or occasional nature that the delay incumbent in their
implementation by county employees would frustrate their very purpose.
(d) All persons who provide services to a county under conditions constituting an employment relationship shall
be employed directly by the county.
(e) (1) Except as provided in paragraph (2), this section shall apply to all counties, including counties that have
adopted a merit or civil service system.
(2) This section does not apply to a charter county formed pursuant to Section 3 of Article XI of the California
Constitution.
(f) (1) This section does not apply to any contract for services described in Section 4525 or 4529.10.
(2) This section does not apply to any contract that is subject to Chapter 1 (commencing with Section 1720) of
Part 7 of Division 2 of the Labor Code.
(3) This section does not apply to a contact for public transit services, including paratransit services, if the
county's transit services are fully funded by Federal Transit Administration assistance and the county is thereby
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subject to the guidelines established in FTA Circular 4220.1F or any subsequent guidelines or revisions issued by
the Federal Transit Administration.
(g) This section shall apply to personal services contracts entered into, renewed, or extended on or after January
1, 2018.
SEC. 2. Section 31000.11 is added to the Government Code, to read:
31000.11. (a) Each county shall maintain on its Internet Web site a searchable database of all contracts of an
annual value in excess of five million dollars ($5,000,000) entered into pursuant to Section 31000.10. The
database shall include, but is not limited to, the following:
(1) A description of the services provided under the contract.
(2) The name of the agency, department, or division responsible for providing the service in the absence of the
contract.
(3) The name of the contractor and any subcontractors providing services under the contract.
(4) The effective and expiration dates of the contract.
(5) The annual amount paid pursuant to the contract to the contractor in the past three fiscal years and the
current fiscal year, including the funding source for all amounts paid.
(6) The annual amount expected to be paid pursuant to the contract to the contractor in the next three fiscal
years.
(7) The total projected cost of the contract for all fiscal years and the funding source for all amounts to be paid.
(8) The names of the employees of the contractor and any subcontractors providing services pursuant to the
contract and their hourly pay rates, and the total number of full-time equivalent positions involved in performing
the services under the contract.
(9) The names of any workers providing services pursuant to the contract as independent contractors and the
compensation rates for such workers.
(b) The information identified in subdivision (a) shall be compiled in an annual service contractor expenditure
budget accompanying the county budget, reflecting all spending on personal services contracts by the county.
SEC. 3. Section 37103.1 is added to the Government Code, to read:
37103.1. The purpose of this section and Section 37103.2 is to establish standards for the use of personal services
contracts by cities.
(a) If otherwise permitted by law, a city or city agency may contract for personal services currently or customarily
performed by city employees when all the following conditions are met:
(1) The city council or city agency clearly demonstrates that the proposed contract will result in actual overall cost
savings to the city for the duration of the entire contract as compared with the city's actual costs of providing the
same services, provided that:
(A) In comparing costs, there shall be included the city's additional cost of providing the same service as
proposed by a contractor. These additional costs shall include the salaries and benefits of additional staff that
would be needed and the cost of additional space, equipment, and materials needed to perform the function.
(B) In comparing costs, there shall not be included the city's indirect overhead costs unless these costs can be
attributed solely to the function in question and would not exist if that function was not performed in city service.
Indirect overhead costs shall mean the pro rata share of existing administrative salaries and benefits, rent,
equipment costs, utilities, and materials.
(C) In comparing costs, there shall be included in the cost of a contractor providing a service any continuing city
costs that would be directly associated with the contracted function. These continuing city costs shall include, but
not be limited to, those for inspection, supervision, and monitoring.
(2) Proposals to contract out work shall not be approved solely on the basis that savings will result from lower
contractor pay rates or benefits. Proposals to contract out work shall be eligible for approval if the contractor's
wages are at the industry's level and do not significantly undercut city pay rates.
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(3) The contract does not cause the displacement of city employees. "Displacement" includes layoff, demotion,
involuntary transfer to a new class, involuntary transfer to a new location requiring a change of residence, and
time base reductions. "Displacement' does not include changes in shifts or days off or reassignment to other
positions within the same class and general location.
(4) The contract does not cause vacant positions in city employment to remain unfilled.
j(5) The contract does not adversely affect the city's affirmative action efforts.
I (6) The savings shall be large enough to ensure that they will not be eliminated by private sector and city cost
Fluctuations that could normally be expected during the contracting period.
(7) The amount of savings clearly justifies the size and duration of the contracting agreement.
(8) The contract is awarded through a publicized, competitive bidding process. The city shall reserve the right to
reject any and all bids or proposals.
i
(9) The contract includes specific provisions pertaining to the qualifications of the staff that will perform the work
under the contract, as well as assurance that the contractor's hiring practices meet applicable nondiscrimination,
affirmative action standards.
1
(10) The potential for future economic risk to the city from potential contractor rate increases is minimal.
(11) The contract is with a firm. "Firm" means a corporation, partnership, nonprofit organization, or sole
proprietorship.
(12) The potential economic advantage of contracting is not outweighed by the public's interest in having a
particular function performed directly by city government. Before executing a contract for personal services under
this section, the city shall demonstrate that outsourcing the particular functions at issue is in the public interest,
addressing the cost of the contract, the cost of administering the contract, the effect on the quality of services
provided to the public, and any other relevant circumstances.
(13) The contract shall provide that it may be terminated at any time by the city without penalty if there is a
material breach of the contract and notice is provided at least 30 days before termination.
(14) The city shall provide an orientation to employees of the contractor who will perform services pursuant to
the contract. The orientation shall include, but is not limited to, all of the following:
(A) A description of the services to be provided pursuant to the contract.
I
(B) A description of the function and goals of the public agency responsible for providing the services in the
absence of the contract.
(C) Any applicable rules governing provision of the services and how the employee may report violations of
applicable rules or contractual requirements,
! (15) If the contract is for personal services in excess of one hundred thousand dollars ($100,000) annually, all of
the following shall occur:
j(A) The city shall require the contractor to disclose all of the following information as part of its bid, application,
or answer to a request for proposal:
(i) A description of all charges, claims, or complaints filed against the contractor with any federal, state, or local
administrative agency during the prior 10 years.
(ii) A description of all civil complaints filed against the contractor in any state or federal court during the prior 10
years.
(iii) A description of all state or federal criminal complaints or indictments filed against the contractor, or any of
its officers, directors, or managers, at any time.
(iv) A description of any debarments of the contractor by any public agency or licensing body at any time.
(v) The total compensation, including salaries and benefits, the contractor provides to workers performing work
similar to that to be provided under the contract.
(vi) The total compensation, including salaries, benefits, options, and any other form of compensation, provided
to the five highest compensated officers, directors, executives, or employees of the contractor.
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(vii) Any other information the city deems necessary to ensure compliance with this section,
(B) Prior to entering into the contract, the city shall conduct, and make public, a cost -benefit analysis considering
the potential impact of outsourcing the work covered by the contract. The analysis shall include:
(i) The potential loss of employment opportunities within the city and resultant loss of income to workers,
(ii) The impact on local businesses if consumer spending power is reduced as a result of reduced wages under the
contract,
(iii) The impact on the city's ability to provide social services and the effect of any reduction in social services on
city residents.
(iv) Potential impacts on the environment, if any.
(C) Prospective contractors shall reimburse the city for the cost of the cost -benefit analysis.
(D) The contract shall provide that the city is entitled to receive a copy of any records related to the contractor's
or any subcontractor's performance of the contract, and that any such records shall be subject to the California
Public Records Act (Chapter 5 (commencing with Section 6250) of Division 7 of Title 1). In furtherance of this
subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that
ordinarily would be maintained by the city in performing the same functions.
(E) (1) The city shall include in the contract specific, measurable performance standards and provisions for a
performance audit by the city, or an independent auditor approved by the city, to determine whether the
performance standards are being met and whether the contractor is in compliance with applicable laws and
regulations. The legislative body shall not renew or extend the contract prior to receiving and considering the
audit report.
(2) The contractor shall reimburse the city for the cost of the audit.
(F) The contract shall include provisions for an audit by the city, or an independent auditor approved by the city,
to determine whether and to what extent the anticipated cost savings have actually been realized. The city shall
not renew or extend the contract before receiving and considering the audit report.
(b) This section does not preclude a city from adopting more restrictive rules regarding the contracting of public
services.
(c) When otherwise permitted by law, the absence of any requirement of subdivision (a) shall not prevent
personal services contracting when any of the following conditions are met:
(1) The contract is for a new city function and the Legislature has specifically mandated or authorized the
performance of the work by independent contractors.
(2) The services contracted cannot be performed satisfactorily by city employees, or are of such a highly
specialized or technical nature that the necessary expert knowledge, experience, and ability are not available
among city employees.
(3) The services are incidental to a contract for the purchase or lease of real or personal property. Contracts
under this criterion, known as 'service agreements, " shall include, but not be limited to, agreements to service or
maintain office equipment or computers that are leased or rented.
(4) The legislative, administrative, or legal goals and purposes cannot be accomplished through the utilization of
city employees. Contracts are permissible under this criterion to protect against a conflict of interest or to ensure
independent and unbiased findings in cases where there is a clear need for a different, outside perspective. These
contracts shall include, but not be limited to, obtaining expert witnesses in litigation.
(5) The nature of the work is such that the standards of this title for emergency appointments apply. These
contracts shall conform with Section 45080.
(6) Public entities or officials need private counsel because a conflict of interest on the part of the city attorney's
office prevents it from representing the public entity or official without compromising its position. These contracts
shall require the written consent of the city attorney.
(7) The contractor will provide equipment, materials, facilities, or support services that could not feasibly be
provided by the city in the location where the services are to be performed.
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(8) The contractor will conduct training courses for which appropriately qualified city employee instructors are not
available, provided that permanent instructor positions in academies or similar settings shall be filled by city
employees.
(9) The services are of such an urgent, temporary, or occasional nature that the delay incumbent in their
implementation by city employees would frustrate their very purpose.
(d) All persons who provide services to a city under conditions constituting an employment relationship shall be
employed directly by the city.
(e) (1) Except as provided in paragraph (2), this section shall apply to all cities, including cities that have adopted
a merit or civil service system.
(2) This section does not apply to a charter city formed pursuant to Section 3 of Article XI of the California
Constitution.
(f) (1) This section does not apply to any contract for services described in Section 4525 or 4529.10.
(2) This section does not apply to any contract that is subject to Chapter 1 (commencing with Section 1720) of
Part 7 of Division 2 of the Labor Code.
(3) This section does not apply to a contract for public transit services, including paratransit services, if the
county's transit services are fully funded by Federal Transit Administration assistance and the county is thereby
subject to the guidelines established in FTA Circular 4220.1F or any subsequent guidelines or revisions issued by
the Federal Transit Administration.
(g) This section shall apply to personal services contracts entered into, renewed, or extended on or after January
1, 2018.
SEC. 4. Section 37103.2 is added to the Government Code, to read:
37103.2. (a) Each city shall maintain on its Internet Web site a searchable database of all contracts of an annual
value in excess of five million dollars ($5,000,000) entered into pursuant to Section 37103.1. The database shall
include, but is not limited to, the following:
(1) A description of the services provided under the contract.
(2) The name of the agency, department, or division responsible for providing the service in the absence of the
contract.
(3) The name of the contractor and any subcontractors providing services under the contract.
(4) The effective and expiration dates of the contract.
(5) The annual amount paid pursuant to the contract to the contractor in the past three fiscal years and the
current fiscal year, including the funding source for all amounts paid.
(6) The annual amount expected to be paid pursuant to the contract to the contractor in the next three fiscal
years.
(7) The total projected cost of the contract for all fiscal years and the funding source for all amounts to be paid.
(8) The names of the employees of the contractor and any subcontractors providing services pursuant to the
contract and their hourly pay rates, and the total number of full-time equivalent positions involved in performing
the services under the contract.
(9) The names of any workers providing services pursuant to the contract as independent contractors and the
compensation rates for such workers.
(b) The information identified in subdivision (a) shall be compiled in an annual service contractor expenditure
budget accompanying the county budget, reflecting all spending on personal services contracts by the county.
SEC. 5. The provisions of this act are severable. If any provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or
application.
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Today's Law As Amended
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SEC. 6. If the Commission on State Mandates determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
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