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SR 08-08-2017 3H City Council Report City Council Meeting: August 8, 2017 Agenda Item: 3.H 1 of 5 To: Mayor and City Council From: Andy Agle, Director, Housing and Economic Development, Economic Development Division Gigi Decavalles-Hughes, Director, Finance Department Subject: Santa Monica Minimum Wage Education and Outreach Services Recommended Action Staff recommends that the City Council authorize the City Manager to: 1) Negotiate and execute a first modification to agreement #3191 with Koreatown Immigrant Workers Alliance, a California-based company, for employee outreach and education services, in the amount of $20,000 for one year, with two- additional one-year renewal options to extend on the same terms and conditions. This will result in a four-year amended agreement with a new total amount not to exceed $92,400, with future-year funding contingent on Council budget approval. 2) Negotiate and execute a first modification to agreement #3187 with Restaurant Opportunities Center - Los Angeles, a California-based company, for employee outreach and education services, in the amount of $20,000 for one year, with two additional one-year renewal options to extend on the same terms and conditions. This will result in a four-year amended agreement with a new total amount not to exceed $85,000, with future-year funding contingent on Council budget approval. 3) Negotiate and execute a first modification to agreement #3190 with Lee Andrews Group, a California-based company, for business outreach and education services, in the amount of $30,000 for one year, with two additional one-year renewal options to extend on the same terms and conditions. This will result in a four-year amended agreement with a new total amount not to exceed $130,000, with future-year funding contingent on Council budget approval. Executive Summary In 2016, Council adopted an ordinance setting a minimum wage in Santa Monica. To assist in helping educate workers and businesses regarding the law and its requirements, the City entered into one-year agreements with three organizations: Koreatown Immigrant Workers Alliance (KIWA), and Restaurant Opportunities Center - Los Angeles (ROC-LA) and Lee Andrews Group. Staff recommends extending outreach efforts to help ensure compliance and to promote continued awareness of the 2 of 5 law’s provisions as it moves into the second year of stepped increases in the wage and other provisions. Staff recommends Council authorize one-year contract extensions with two, one-year renewal options and associated funding increases of $20,000 annually for KIWA for a total not to exceed $92,400; $20,000 increase annually for ROC-LA for a total not to exceed of $85,000; and $30,000 increase annually for Lee Andrews Group for a total not to exceed $130,000. Background Council adopted an ordinance setting a minimum wage in Santa Monica on January 12, 2016 (Attachment A). On April 26, 2016, Council adopted amendments to the minimum wage ordinance following feedback and recommendations from a Santa Monica Minimum Wage Working Group. As part of its actions approving the minimum wage, Council authorized staff to issue a Request for Proposals (RFP) to provide education outreach to Santa Monica businesses and workers on the new minimum wage law and its provisions (Attachment B). On September 26, 2016, the City entered into professional service agreements to provide minimum wage outreach and education services to the City’s workforce and businesses with Koreatown Immigrant Workers Alliance (KIWA), Restaurant Opportunities Center - Los Angeles (ROC-LA), and Lee Andrews Group. KIWA is contracted to provide support to Santa Monica workers and minority-owned or operated businesses, ROC-LA is contracted to provide outreach to Santa Monica restaurant workers, and Lee Andrews Group is contracted to provide outreach to Santa Monica business owners and managers. Staff holds monthly discussions with each provider to discuss strategy and lessons learned, address questions or concerns, and review outreach efforts. Staff also encourages information sharing and collaboration among the groups to maximize effectiveness and mitigate against duplicative or conflicting efforts. Collectively, the organizations have provided direct support to nearly 1,000 Santa Monica businesses and over 800 workers. The organizations’ efforts complement the City’s communication 3 of 5 efforts, which have helped to reach approximately 15,000 City business license holders and over 110,000 local workers and community members, as measured by social media impressions, website engagement, and minimum wage hotline calls. Staff will provide additional information to Council later in the year as part of the one-year review of minimum wage law implementation. All three contracts expire at the end of September 2017. Discussion Multi-year efforts to educate employees and businesses regarding minimum wages and associated requirements is a recognized best practice that other jurisdictions with similar minimum wage laws have employed. For example, the City and County of Los Angeles have similar agreements with these and comparable community-based groups. The initial feedback from Santa Monica businesses regarding the City’s minimum wage ordinance was that they had heard of the law but did not know the specific requirements or provisions. Santa Monica employees initially reported a limited general awareness of the law, though they knew very little of the law’s specifics or its applicability to them. Feedback received throughout the year shows an increasing awareness among all parties, though information gaps still exist and could be narrowed by additional communication efforts. Work with outreach groups is one part of the City’s outreach plan. City staff has concurrently implemented a series of communication and marketing efforts related to each milestone of the increase in the minimum wage and paid sick leave benefits, as well as producing a variety of collateral materials and public service announcements. Supplemental efforts to reach Santa Monica's minimum wage workers through posters on Big Blue Bus and Expo Light Rail have also helped raise overall awareness. The minimum wage law includes three additional annual increases in the hourly wage. The hotel living wage also increased significantly on July 1, 2017, to align with the City of Los Angeles. Ensuring that Santa Monica businesses are both aware of, and in full compliance with, the new law is extremely important. Providing educational outreach and multi-lingual support to Santa Monica’s minimum wage workers is also critical in 4 of 5 ensuring that workers know their rights under the new law and in overall efforts to help prevent wage-theft challenges. Additional outreach support is also needed to continue to inform and educate both businesses and their employees of the paid sick-leave provisions of the law. Paid sick leave is a new labor law requirement and employee benefit in both Santa Monica and in the State of California. Many local workers continue to be unsure of or unaware of their entitled sick-leave benefits under the minimum wage law. Additional outreach to employers, paired with education materials to help them understand the legal requirements, helps ensure compliance. The Lee Andrews Group has been working closely with Economic Development, Finance, and the Office of Communications to develop outreach materials specific to the local minimum wage ordinance requirements. KIWA and ROC-LA are also exploring additional communication efforts, including videos and targeted social media, to help both workers and employers understand the minimum wage law and its requirements. Staff recommends extending the contracts with all three firms for one year each, with two, one-year renewal options, in order to continue providing essential minimum wage ordinance education and outreach support to the community. Financial Impacts and Budget Actions The contract modification to be awarded to KIWA is $60,000, for an amended agreement total not to exceed $92,400. The contract modification to be awarded to ROC-LA is $60,000, for an amended agreement total not to exceed $85,000. Finally, the contract modification to be awarded to Lee Andrews Group is $90,000 annually, for an amended agreement total not to exceed $130,000. Funds of $70,000 are available in the FY 2017-18 budget in the Finance Department. The agreements will be charged to account S010130.589000, subledger 92021 W. Future-year funding is contingent on Council budget approval. 5 of 5 Prepared By: Jennifer Taylor, Economic Development Adminstrator Approved Forwarded to Council Attachments: A. Jan. 12, 2016 Council Report (weblink) B. April 26, 2016 Council Report (weblink) C. KIWA - Oaks Initiative 2017 D. Lee Andrews Group - Oaks Initiative 2017 E. Hunter Hall - Oaks Initiative 2017 F. ROC-LA - Oaks Initiative 2017 CITY OF SANTA MONICA OAKS INITIATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months. CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ FOR CITY USE ONLY: Bid/PO/Contract # ____________________________ Permit # ___________________________ CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM  In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity.  Public benefits include:  1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period.   Name(s) of persons or entities receiving public benefit:   Name(s) of trustees, directors, partners, and officers:  Name(s) of persons with more than a 10% equity, participation, or revenue interest:  Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________  FOR CITY USE ONLY: Bid/PO/Contract # ____________________________ Permit # ___________________________  Kathy Hoang Director 7/15/17 kathy@rocunited.org 213-380-1020 Restaurant Opportunities Center of Los Angeles Saru Jayaraman, Co-Director Fekkak Mamdouh, Co-Director Please see attached Board of Directors list. Paul Schwalb UNITE HERE 275 Seventh Ave. New York, NY 10001 Board Member Steven Pitts Center for Labor Research and Education 2521 Channing Way #5555 Berkeley, CA 94720‐5555 Board Member Morgan Simon 350 7th Ave., Suite 1504 New York, NY 10001 Board Co‐Chair Jessica Wynter Martin 1100 Florida Ave NW Washington DC 20009 Board Member Jorge Jimenez 1730 W Olympic Blvd #300 Los Angeles CA 90015 Board Member Victoria Bruton 1329 Buttonwood St. 3rd Fl. Philadelphia, PA 19123 Board Member Kelly Ditson 1329 Buttonwood St. 3rd Fl. Philadelphia, PA 19123 Board Member Nataki Rhodes 77 W Washington St Chicago, IL 60602 Board Member Saru Jayaraman 350 7th Ave Suite 1504 New York NY 10001 Co‐Director Mamdouh Fekkak 350 7th Ave Suite 1504 New York NY 10001 Co‐Director Abel Valenzuela UCLA Cesar E. Chavez Dept of Chicano/a studies Box 951557 7365 Bunche Hall Los Angeles CA 90065 Board Chair Jennifer Herman 437 W 16th St Lower Level New York NY 10011 Board Vice Chair Woong Chang 1326 9th St NW Washington DC 20001 Board Member Dayna Cunningham 77 Massachusetts Ave Building/Room 7-307 Cambridge MA 02139 Board Member REFERENCE:    AGREEMENT NOS. 10519,  10520 & 10521  (CCS)