O2477City Council Meeting: January 13, 2015 Santa Monica, California
ORDINANCE NUMBER 2477 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA REVISING CERTAIN PROVISIONS
OF CHAPTER 7.28 OF THE SANTA MONICA MUNICIPAL CODE
WHEREAS, pursuant to Senate Bill No. 7 (Stats. 2013, chapter 794)( "SB 7 "),
effective January 1, 2014, a charter city is prohibited from receiving or using state
funding or financial assistance for a construction project if the city has a charter
provision or ordinance that authorizes contractor non - compliance with the State's
prevailing wage provisions on any public works contract, even if the contract is funded
solely with local funds, subject only to limited exemptions; and
WHEREAS, SB 7 has been codified as Labor Code section 1782; and
WHEREAS, SB 7 exempts projects of twenty -five thousand dollars ($25,000) or
less when the project is for new construction, or projects of fifteen thousand dollars
($15,000) or less when the project is for alteration, demolition, repair or maintenance
work; and
WHEREAS, the City's prevailing wage ordinance, codified as Chapter 7.28 of the
Santa Monica Municipal Code ( "Chapter 7.28 "), exempts payment of prevailing wages
for (i) rehabilitation projects that cost less than $250,000, excluding soft costs, or 20
housing units, and (ii) new construction projects that cost less than $1,000,000,
excluding soft costs, or 20 housing units; and
WHEREAS, the City Council desires to amend Chapter 7.28 to match the lower
exemption thresholds in Labor Code section 1782, which apply to new construction
projects of twenty -five thousand dollars ($25,000) or less and projects of fifteen
thousand dollars ($15,000) or less for alterations, demolition, repair or maintenance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA .
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 7.28 of Santa Monica Municipal Code is hereby amended,
as follows:
Chapter 7.28 PREVAILING WAGE AND APPRENTICESHIP LAW
7.28.010 Name, Purpose and Scope.
This Chapter shall be called the "Prevailing Wage and Apprenticeship Law ". It is
intended to establish project size and financing cost thresholds which will trigger
requirements for payment of prevailing wages and /or participation in apprenticeship
programs for public works projects receiving Federal, State or City financial assistance,
or projects located on land leased by the City of Santa Monica to private parties.
7.28.020 Definitions.
The following words and phrases as used in this Chapter shall have the following
meanings:
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(a) Prevailing Wages.
(1) For public works projects receiving federal financial assistance, the
minimum wages established pursuant to Federal law for each construction trade or
craft.
(2) For public works projects receiving only State or City financial
assistance, the minimum wages 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 public works contract.
(3) For purposes herein, "public works" has the same meaning as set
forth in California Labor Code section 1720(a), as amended from time to time.
(4) For purposes herein, "paid for in whole or in part with public funds'
has the same meaning as set forth in California Labor Code section 1720(b), as
amended from time to time.
(b) Apprenticeship Program Requirements. Contractor compliance with the
following California Labor Code requirements concerning apprenticeable construction
crafts or trades:
(1) Certification of 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.
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(2) Contribution of an amount established by the joint apprenticeship
committee or committees for each trade in question either to (i) a recognized trade-
specific training or apprenticeship program sponsored by each union for the
administration of such apprenticeship programs, or (ii) the California Apprenticeship
Council or any successor agency thereto.
(c) Public Works Project. Any public works project within the City which
fulfills both the following requirements:
(1) Is paid for in whole or in part with public funds or is a privately
funded project located on land leased by the City to private parties; and
(2) Satisfies the minimum thresholds for project size or cost
established in this Chapter. Public works project does not include projects undertaken
by any public 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, Housing Authority and Parking Authority.
7.28.030 Applicability of Prevailing Wage Requirements.
Prevailing wages shall be paid by contractors on public works projects, as
follows:
(a) Public works projects subject to applicable Federal or State prevailing
wage requirements in accordance with the sources of funding provided for such
projects.
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(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 and Community Development financial
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) Public works projects paid for in whole or in part out of public funds solely
from the City shall be subject to State prevailing wage requirements if the following
minimum thresholds are satisfied:
(1) The public works contract is for construction work over twenty -five
thousand dollars ($25,000.00) or unless and to the extent that said threshold amount is
increased in the California Labor Code.
(2) The public works contract is for alteration, demolition, repair, or
maintenance work over fifteen thousand dollars ($15,000) or unless and to the extent
that said threshold amount is increased in the California Labor Code.
(e) Privately funded projects on land leased by the City to private parties,
which are not public works projects, 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:
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(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 construction contract cost of $1,000,000.00, 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.
7.28.040 Applicability of Apprenticeship Program Requirements.
Contractors shall comply with the apprenticeship program requirements in
connection with the following public works projects:
(a) Public works projects shall comply with one of the apprenticeship program
requirements set forth in Section 7.28.020(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 in part by either Federal Housing
and Urban Development and /or State Housing and Community Development financial
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assistance shall comply with the applicable Federal or State threshold requirements for
sponsorship of or contribution to training or apprenticeship programs.
(d) Public works projects paid for in whole or in part out of public funds solely
from the City shall adhere to the apprenticeship program requirements set forth in
Section 7.28.020(b) of this Chapter if the following minimum thresholds are satisfied:
(1) The public works contract is for construction work over twenty -five
thousand dollars ($25,000.00) or unless and to the extent that said threshold amount is
increased in the California Labor Code.
(2) The public works contract is for alteration, demolition, repair, or
maintenance work over fifteen thousand dollars ($15,000) or unless and to the extent
that said threshold amount is increased in the California Labor Code.
(e) Privately funded projects on land leased by the City to private parties,
which are not public works projects, 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.
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(2) For a new construction project, either a minimum project size of 20
housing units or a minimum total construction contract cost of $1,000,000.00, exclusive
of expenses associated with site acquisition, architectural and other preconstruction
development costs, financing charges, bonding and insurance requirements and fees,
permits or licenses required in connection with the projects.
7.28.050 Adjustment to Dollar Amount Thresholds.
Commencing on July 1, 1988, and on each July 1 thereafter, any dollar amount
threshold set forth in Sections 7.28.030(e) and 7.28.040(e) of 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.
7.28.060 Procedures for Determination of Applicability of Requirements or
Exemption Therefrom.
(a) The City Manager shall develop appropriate procedures for the review and
determination of the applicability of this Chapter's requirements to the particular
projects.
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(b) The City Manager may exempt any privately funded project on land leased
by the City to private parties, which is not a public works project, from the requirements
of this Chapter upon satisfactory evidence that either:
(1) The project developer has not been able to obtain bids from
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
projects 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.
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 further, is hereby repealed or modified to that extent necessary
to effect 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 competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would
have passed this Ordinance and each and every section, subsection, sentence, clause,
R,
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. This Ordinance shall become
effective 30 days from its adoption.
APPROVED AS TO FORM:
MA S A JQN S MOUT IE
City tt( 'y
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Approved and adopted this 13th day of January, 2015.
Kevin McKeown, Mayor
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Ordinance No. 2477 (CCS) had its introduction on December 16,
2014, and was adopted at the Santa Monica City Council meeting held on
January 13, 2015, by the following vote:
Ayes: Councilmembers: Davis, Himmelrich, O'Connor, O'Day, Winterer
Mayor McKeown, Mayor Pro Tern Vazquez
Noes: Councilmembers: None
Absent: Councilmembers: None
A summary of Ordinance No. 2477 (CCS) was duly published pursuant to
California Government Code Section 40806 .
ATTEST:
Sarah P. Gorman, City Clerk