SR-703-007
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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
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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
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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
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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.
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"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
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$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
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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.
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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
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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
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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:
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.
(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
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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
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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
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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,
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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
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. 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-
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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-
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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
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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
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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:
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ROBERT M. MYERS
City Attorney
"0.
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