IMPARTIAL ANALYSIS BY THE CITY ATTORNEY OF PROPOSITION KK

     The wage and benefit standards would apply to employees working on City service contracts costing over $25,000 and lasting at least three months and to all service contracts covered by the City's competitive bidding requirements.  Smaller contracts could also be covered by regulation.  The standards would also cover workers employed by City financial assistance recipients who receive "discrete and direct financial assistance for economic development or job growth expressly articulated and identified by the City."  If financial assistance exceeded $100,000 in twelve months, the recipient would have to comply with the minimum wage and benefit requirements for five years; if the grant was between $25,000 and $100,000, the recipient would have to comply for one year.  In the case of non-City funding, such as federal or state funding, the requirements would apply if consistent with applicable restrictions as determined by the funding source or a court.

     The measure provides that its minimum wage and benefit requirements could be superceded by collective bargaining agreements.  Also, there are exemptions for governmental employment, tax exempt employers, and local wage requirements in construction contracts.

     The measure excludes managers, supervisors, and occupational licensees from the definition of covered employees.  As to City contracts, the definition includes workers who spend any time on the contract work.  As to grants, the definition of a covered employee includes those who spend half their time on the funded project and on the premises of the grantee directly involved in the City-funded activities.

     The minimum wage established by the measure is $8.32 per hour with health care benefits or $9.46 per hour without them.  Rates would be adjusted annually to reflect changes in a designated price index unless the City Council approved a lower adjustment.  The required benefits are twelve paid and ten unpaid days off each year and $1.14 per hour towards health care benefits for employees and dependents if wages are at the lower of the two specified hourly rates.

     This measure contains a significant "exclusivity" clause.  It would operate as a limitation upon any local legislative power to establish minimum wage and benefits requirements applicable to private employers.  This clause specifies that only the voters of Santa Monica could adopt a measure modifying minimum wages or benefits for people employed in Santa Monica.  The clause would effectively prohibit the City Council from adopting any ordinance, rule or regulation modifying minimum wages or benefits for people employed in the City.  Additionally, the measure includes language which would repeal any existing local ordinance, rule or regulation establishing minimum wages or benefits for people working in the City.

PREPARED BY:  Marsha Jones Moutrie, City Attorney
                               Joseph Lawrence, Assistant City Attorney

Notice of Intent to Circulate Petition

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