Loading...
SR-703-007 . ?-()5.- O{)? . 8-8 WR 2" 1981 CA:RMM:lamr002/hpw City ~ouncil Meeting 03-24-87 , Santa Monical California STAFF REPORT TO: Mayor and City Council SUBJECT: city Attorney Ordinance Adding Chapter 4A of Article VII Of the Santa Monica Municipal Code Establishing A Prevailing Wage and Apprenticeship Law. FROM: This Staff Report transmits the accompanying ordinance for introduction and first reading adding Chapter 4A to Article VII of the santa Monica Municipal Code pertaining to the applicability of requirements for payment of prevailing wages and apprenticeship programs for specified rehabilitation and new construction projects. BACKGROUND This proposed Ordinance would establish thresholds pursuant to which certain rehabilitation and new construction proj ects within the City of Santa Monica would be required to pay prevailing wages and satisfy apprenticeship program requirements as defined in such ordinance. On August 12 I 1986 , the City council requested Staff to provide information regarding the background and potential implications of a City policy regarding the payment of prevailing wages and the operation of apprenticeship programs as proposed by Local 1400 of the United Brotherhood of carpenters and Joiners of America. Local 1400 had - 1. - 8,,6 Wit 2'" 1961 presented a reSOl~on for Council conSidera~on proposing that all construction employers be required to pay the state established prevailing wage rates on projects involving City property regardless of the source of financing. Such proposed resolution also required payment of prevailing wages to all projects financed in whole or in part with City funds. Additionally, the union had proposed that the resolution include a requirement that all projects performed on city property provide proof of participation as a signatory to a recognized apprenticeship and/or training program. At its meeting on October 28, 1986, following a staff report by city staff, the city council directed the city Attorney to prepare an ordinance relating to prevailing wages and apprenticeship programs. Following discussions with union representatives and City Staff, the proposed ordinance was drafted and is now presented for your consideration. The proposed ordinance would establish prevailing wage and apprenticeship requirements for specified construction projects within the city. Rehabilitation or new construction proj ects which receive any Federal, state or city financial assistance or which are located on land leased by the city to private parties would be subject to the prevailing wage and apprenticeship requirements provided such projects satisfied the size or dollar thresholds set forth in the ordinance. However, the City may exempt a particular project from requirements of the Ordinance if a project developer provides satisfactory evidence to the city that he has been unable to - 2 - obtain bids from at responsible contractors , that compliance with the requirements would increase construction costs of the project by more than 20% over and above the normally reasonable cost of at least three comparable projects so that the particular project would not be financially feasible to develop. Determination for an exemption would be on a case-by-case basis and subject to the City's sole discretion. SECTION-BY-SECTION ANALYSIS The ordinance adds Chapter 4A of Article VII of the Santa Monica Municipal Code, entitled "Prevailing Wage and Apprenticeship Law." section 7420. Name, Purpose and Scope. The ordinance is entitled "Prevailing Wage and Apprenticeship Law." It is intended to establish project size and financing cost thresholds which would trigger requirements for the payment of prevailing wages and/or participation in apprenticeship programs for construction of projects receiving Federal, state or city financial assistance or proj ects located on land leased by the city of Santa Monica to private parties. SECTION 7421. Definitions. This section defines the following key terms: "prevailing wages," "apprenticeship program requirements," "qualifying construction project" and "City." The term "prevailing wages" is tied to the source of funds received for a particular project. Thus if Federal financial assistance is received, the qualifying project must comply with Federal Davis-Bacon prevailing wage requirements. Construction projects - 3 - projects which relve State or City finanl.l assistance or which are located on land leased by the City would require compliance with the state of California Prevailing Wage Requirements as determined by the Director of the California Department of Industrial Relations for each construction, craft, classification or type of worker needed to execute the construction contract. The Apprenticeship Program requirements would require that certification of approval be obtained from the joint apprenticeship committee (s) nearest to the site of the project for employment and training of apprentices for each craft or trade pursuant to the California Labor code requirements and the contribution of an amount established by the joint apprenticeship committee(s) for each trade in question, either to a recognized trade specific training or apprenticeship program sponsored by each union for administration of such apprenticeship programs or to the California Apprenticeship Council. "Qualifying construction proj ectl1 includes any rehabilitation or new construction project within the City of santa Monica which receives Federal, state or City financial assistance or is located on land leased by the City to private parties and which satisfies the minimum threshold for proj ect size or cost established by the ordinance. "Qualifying construction project" does not include projects undertaken by any public agency other than the City as defined in the ordinance. - 4 - "City" inclul the City of Santa Monica~its Redevelopment Agency, Housing Authority and Parking Authority. SECTION 7422. Applicability of prevailinq Waqe Requirements. This section describes particular qualifying construction projects which are subject to prevailing wage requirements set by either Federal or state law. All public works projects as defined in the California Labor Code are required to comply with the applicable Federal or state prevailing wage requirements in accordance with the sources of funding provided for such projects. PUblic Housing projects constructed under the Federal Housing Act of 1937 must comply with applicable Federal prevailing wage requirements. Housing projects financed in whole or part by either Federal Housing and urban Development and/or state Housing and Community Development financial assistance must comply with applicable Federal or state prevail ing wage requirements in accordance with requirements of the sources of funding provided for the projects. Qualifying construction projects which receive public financial assistance solely from the city of Santa Monica would be required to satisfy state prevailing wage requirements if such project also satisfies the minimum project size or construction contract cost thresholds set by the ordinance. The thresholds for rehabilitation projects would be either a minimum project size of 20 housing units or a minimum total construction contract cost of $250,000.00. The minimum thresholds for a new construction project would be either a minimum project size of 20 housing units or a minimum total construction contract cost of - 5 - $1,000,000. The ~culation of the total co~truction contract cost excludes all expenses and costs associated with site acquisition, architectural and other preconstruct ion development cost, financing charges, bonding and insurance requirements and any fees, permits or I icenses required in connection with the project. Subsection (e) of Section 7422 applies the same minimum project thresholds to any qualifying construction project located on land leased by the City of Santa Monica to private parties. SECTION 7423. Applicability of Apprenticeship proqram Requirements. This section describes the applicabilty of apprenticeship program requirements to the various types of qualifying construction projects. All public works projects must satisfy the apprenticeship program requirements as defined in Section 7421(b) of the ordinance. Public Housing Projects financed in whole or in part by Federal financial assistance are required to comply with sponsorship of training or apprenticeship programs under applicable Federal law. Housing projects financed in whole or part by either Federal Housing and Urban Development or State Housing and Community Development financial assistance must comply with the applicable Federal or State requirements for sponsorship or contribution to training or apprenticeship programs. Qualifying construction projects receiving public financial assistance solely from the city of Santa Monica or which are located on land leased by the City to private parties must adhere - 6 - to the apprentice!p program requirements tined in section 7421 (b) of the ordinance provided that the minimum thresholds established by the ordinance are satisfied. For rehabilitation projects a minimum threshold for triggering of the apprenticeship program requirements is either a project size of 20 housing units, or a minimum total construction contract cost of $250,000. For a new construction proj ect, minimum threshold triggering requirements are either a minimum project size of 20 housing units or a minimum total construction contract cost of $1,000,000. It should be noted that any construction project located on land leased by the City to private parties is not subject to either the prevailing wage requirements or apprenticeship program requirements unless the lease is executed after the effective date of the ordinance and the project satisfies the minimum thresholds established therein. SECTION 7424. Ad;ustment to Dollar Amount Thresholds. This section provides a means to adjust the dollar amount thresholds to reflect an inflation factor. The minimum dollar amount thresholds on construction contracts would be adjusted annually commencing July 1, 1988, for inflation based upon the percentage change in the Consumer Price Index for the previous calendar year. SECTION 7425. Procedures for Determination of Applicabilitv Reauirements or Exemption Therefrom. This section provides that the City Manager shall develop appropriate procedures for the review and determination of the applicability of the ordinance's requirements to the particular projects. - 7 - Additionally, thi~ection allows the ci ty 'nager to make a case-by-case determination for exemption of a particular project from the prevailing wage and apprenticeship program requirements of the ordinance upon satisfactory evidence that either (1) the project developer has been unable to obtain bids from responsible contractors or (2) compliance with the requirements of the ordinance would increase construction costs of the qualifying project by more than 20% over and above the normal and reasonable costs of at least 3 other comparable proj ects such that the project would be financially infeasible to develop. The determination of whether a particular project would be exempt from the requirements of the ordinance would be made in the city Manager's sole discretion. RECOMMENDATION It is respectfully recommended that the accompanying ordinance be introduced for first reading. PREPARED BY: Robert M. Myers, city Attorney Linda A. Moxon, Deputy city Attorney Julia Griffin, Sr. Management Analyst - 8 - . . CA:RMM:lamo028/hpw city Council Meeting 3-24-87 Santa Monica, California ORDINANCE NUMBER (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING CHAPTER 4A TO ARTICLE VII OF THE SANTA MONICA MUNICIPAL CODE ESTABLISHING A PREVAILING WAGE AND APPRENTICESHIP LAW THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter 4A is added to Article VII of the Santa Monica Municipal Code to read as follows: Chapter 4A. PREVAILING WAGE AND APPRENTICESHIP LAW. section 7420. Name, Purpose and Scope. This Chapter shall be called the "Prevailing Wage and Apprenticeship Law". It is intended to establish proj ect size and financing cost thresholds which will trigger requirements for payment of prevailing wages and/or participation in apprenticeship programs for construction projects receiving Federal, state or city financial assistance, or projects located - 1 - on land~ased by the City of santa~onica to private parties. section 7421. Definitions. The following words and phrases as used in this Chapter shall have the following meanings: (a) Prevailinq Waqes. (1) For construction projects receiving Federal financial assistance, the minimum wages established pursuant to Federal law for each construction trade or craft. (2) For construction pro- jects receiving only state or City finan- cial assistance, or qualifying projects located on land leased by City to private parties, minimum wages as determined by the Director of the California Department of Industrial Relations for each construc- tion, craft, classification or type of worker needed to execute the construction contract. (b) Apprenticeship Program Requirements. Contractor compliance with the following California Labor Code requirements concerning apprenticeable construction crafts or trades: - 2 - . (1) t'f' t'. f Cer ~ ~ca lon 0 approval from the joint apprenticeship committee or committees nearest the site of the project for the employment and training of apprentices for each craft or trade as required by California Labor Code Section 1777.5. (2) contribution of an amount establ ished by the joint appren- ticeship committee or committees for each trade in question either to (i) a recog- nized trade-specific training or appren- ticeship program sponsored by each union for the administration of such apprentice- Ship programs, or (ii) the California Apprenticeship Councilor any successor agency thereto. (c) Qualifyinq Construction Pro- ject. Any rehabilitation or new construc- tion proj ect within the Ci ty which fulfills both the following requirements: (1 ) Receives either Federal, state or City financial assistance or is located on land leased by the city to private parties. (2) Satisfies the minimum thresholds for project size or cost establ ished in this Chapter. Qualifying - 3 - construton project does . not 1nclude proj ects undertaken by any publ ic agency other than the city as defined herein. (d) City. The use of the term city herein shall include only the city of Santa Monica, and its Redevelopment Agency, Housing Authority and parking Authority. section 7422. Applicability of Prevailing Waqe Requirements. Prevailing wages shall be paid by contractors of the following projects: qualifying construction (a) Publ ic works proj ects as defined in the California Labor Code shall comply with the applicable Federal or state prevailing wage requirements in accordance with the sources of funding provided for such projects. (b) Public housing projects constructed pursuant to the Federal Housing Act of 1937 shall comply with applicable Federal prevailing wage requirements. (c) Housing projects financed in whole or part by either Federal Housing and Urban Development and/or state Housing - 4 - and . 't Commun1. y Development f,. . 1 l.nanC1.a assistance shall comply with the applicable Federal or state prevailing wage requirements in accordance with the requirements of the sources of funding provided for such projects. (d) Qualifying construction pro- jects receiving pUblic financial assis- tance solely from the city shall comply with state prevailing wage requirements if the following minimum thresholds are satisfied: (1) For a rehabilitation project, either a minimum project size of 20 housing units, or a minimum total construction contract cost of $250,000.00, exclusive of expenses associated with site acquisition, architectural and other pre- construction development costs, financing charges, bonding and insurance require- ments, and fees, permits or licenses required in connection with the project. (2) For a new construction project either a minimum project size of 20 housing units or a minimum total con- struction contract cost of $1,000,000.00, exclusive of expenses associated with site acquisition, architectural and other - 5 - pre-con~uction development . costs, financing charges f bonding and insurance requirements, and fees, permits or licenses required in connection with the project. (e) Qualifying construction pro- jects on land leased by the City to private parties which do not receive any direct financial assistance from the City, state or Federal governments shall be subject to payment of prevailing wages if the lease is executed after the effective date of this Chapter and if the following minimum thresholds are satisfied: (1) For a rehabilitation project, either a minimum project size of 20 housing units or a minimum total con- struction contract cost of $250,000.00, exclusive of expenses associated with site acquisition, architectural and other pre- construction development costs, financing charges, bonding and insurance require- ments, and fees, permits or licenses required in connection with the project. (2 ) For a new construction project, either a minimum project size of 20 housing units or a minimum total con- struction contract cost of $1,000,000.00, - 6 - exclusi~ of expenses associated w~ site acquisition, architectural and other pre- construction development costs, financing charges, bonding and insurance require- ments and fees , permits or licenses required in connection with the project. Section 7423. Applicability o~ Apprenticeship proqram Requirements. Contractors shall comply with the appren- ticeship program requirements in connec- tion with the following qualifying con- struction projects: (a) Public works projects as defined in the California Labor Code shall comply with one of the apprenticeship program requirements set forth in section 742l(b) of this Chapter. (b) Public housing projects financed in whole or in part by Federal financial assistance shall comply with the sponsorship of training or apprenticeship programs as required by applicable Federal law. (c) Housing projects financed in whole or part by either Federal Housing and Urban Development and/or state Housing and community Development financial - 7 - . t . ass1S ance shall comply wi t' the applicable Federal or state threshold requirements for sponsorship of or contribution to training or apprenticeship programs. (d) Qualifying construction pro- jects receiving public financial assis- tance solely from the City shall adhere to the apprenticeship program requirements set forth in Section 7421(b) of this Chapter if the following minimum thresholds are satisfied: (1) For a rehabilitation project, either a minimum project size of 20 housing units, or a minimum total con- struction contract cost of $250,000.00, exclusive of expenses associated with site acquisition, architectural and other pre- construction development costs, financing charges, bonding and insurance require- me.nts and fees, permits or licenses required in connection with the project. (2) For a new construction project, either a minimum project size of 20 housing units or a minimum total con- struction contract cost of $1,000,000.00 exclusive of expenses associated with site acquisition, architectural and other pre- - 8 - constru~on development costs, f. . l.nancl.ng charges, bonding and insurance require- ments, and fees, permits or licenses required in connection with the project. (e) Qualifying construction proj ects on land leased by the city to private parties which do not receive any direct financial assistance from the City, state or Federal governments shall be subject to the apprenticeship program requirements stated in this Chapter if the lease is executed after the effective date of this Chapter and if the following minimum thresholds are satisfied: (1) For a rehabilitation project, either a minimum project size of 20 housing units or a minimum total construction contract cost of $250,000.00, exclusive of expenses associated with site acquisition, architectural and other pre-construction development costs, financing charges, bonding and insurance requirements, and fees, permits or licenses required in connection with the project. (2) For a new construction project, either a minimum project size of 20 housing units or a minimum total con- - 9 - structit contract cost of $1,00010.00, exclusive of expenses associated with site acquisition, architectural and other pre- construction development costs, financing charges, bonding and insurance require- ments, and fees, permits or licenses required in conection with the project. Section 7424. Adjustment to Dollar Amount Thresholds. Commencing on July I, 1988, and on each July 1 thereafter, any dollar amount threshold set forth in this Chapter shall be adjusted upward or downward by the percentage change in the Consumer Price Index for the previous calendar year. For purposes of this Chapter, the Consumer Price Index shall mean the index for Urban Wage Earners and Clerical Workers for the Los Angeles/Long Beach statistical area, as published by the United states Department of Labor, Bureau of Labor statistics, or any successor agency. section 7425. Procedures for Determination of Applicability of Require- ments or Ex~mption Therefrom. (a) The City Manager shall develop appropriate procedures for the review and - 10 - determi!ion of the apPlicability' this Chapter's requirements to the particular projects. (b) The City Manager may exempt a particular proj ect from the requirements of this Chapter upon satisfactory evidence that either: (1) The has not been able to responsible contractors. (2) Compliance with the requirements of this Chapter would increase the construction costs of the qualifying project by more than twenty percent (20%) over and above the normal and reasonable costs of at least three (3) other comparable proj ects such that the project would be financially infeasible to develop. The determination of whether a particular project is exempt from the requirements of this Chapter shall be in the sole discretion of the City Manager. project developer obtain bids from SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this ordinance, to the extent of such inconsistencies and no - 11 - further, are hereb~epealed or modified to th~ extent necessary to affect the provisions of this ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council hereby declares that it would have passed this ordinance and each and every section, subsection, sentence, clause or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. The ordinance shall become effective 30 days after the date of its adoption. APPROVED AS TO FORM: ~ \.....-. '- ROBERT M. MYERS City Attorney "0. - 12 -