SR 08-08-2017 3H
City Council Report
City Council Meeting: August 8, 2017
Agenda Item: 3.H
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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
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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
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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
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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.
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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)