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SR-604-002 ... . 1 ,~ . . t? to ~ ~(}!) Z- City Clerk:CEJ:jj(fin) City Council Meeting: 1/10/89 Santa Monica, TO: Mayor and Councilmembers FROM: Councilmember Finkel SUBJECT: Amending Ordinance No. 1408 (CCS) Regarding Prevailing Wage and Apprenticeship Requirements It is requested that on January 10, 1989, Council discuss the feasability and desirability of reviewing and amending Ordinance Number 1408 (CCS) to address a concern recently voiced by George Zurow of the Carpenters Union, concerning the non-applicability of the ordinance to subcontractors, licensees and assignees of persons/companies with whom the City has leases. Ordinance No. 1408 {CCS) requires prevailing wage and apprenticeship requirements to be met by public lessees. There is a question about retroactive application of the ordinance to the subcontractors etc., of lessees who entered into leases with the City prior to the effective date of the ordinance but who entered into subleases etc., after the effective date of the ordinance. Apparently public lessees have been entering into subcontracts and subleases and some sublessees and subcontractors have not complied with the prevailing wage and apprenticeship ordinance. Apparently there are legal questions surrounding the application of our ordinance to those sublessees and subcontractors whose contracts pre date our ordinance. Our ordinance does apply to subcontractors and sublessees whose contracts post date the ordinance. tit ,~ ~ I already have been advised that the Attorney General is lookit 24 into the question of the legality of applying such ordinances to 5'-1;3 - 1 - FEe 1 4 1!89 '.- ~. . . private leases entered into by private parties. Our ordinance applies only to leases between the City and private persons. It is possible that amending our ordinance to cover existing subleases (entered into by our lessees) would be vulnerable to legal attack in the absence of the City I S right to apply its prevailing wage and apprenticeship ordinance to leases between private parties also. In light of the above, I request that council instruct the City Attorney to investigate the legality of the City's amending its ordinance (i.e, expanding its scope to reach purely private leases). I also request that the city Manager be instructed to address policy considerations underlying such a proposed expansion of our ordinance. I ask that both the City Manager and City Attorney report back to the Council with appropriate recommendations, concerning this issue. - 2 -