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CC - ACTION ITEM: Discussion and Direction of a Potential Transparency Ordinance Requiring Construction Contractors and Subcontractor Disclosures.
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Meeting Date: October 28, 2024
Contact Person/Dept.: Tim Koutsouros/Planning & Development Department
Phone Number: (310) 253-5802
Fiscal Impact: Yes [] No [x] General Fund: Yes [] No [x]
Attachments: Yes [x] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (10/23/2024)
Department Approval: Mark Muenzer Planning & Development Director (10/1/2024) _____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council discuss and provide direction for a potential transparency ordinance requiring contractors and subcontractor disclosures, and to consider the City of Carson's ordinance as a model ordinance.
BACKGROUND
On April 8, 2024, the City Council reached a consensus to agendize a discussion on transparency disclosures in construction permitting. Staff has further reviewed and is providing the following information for discussion purposes.
In the construction industry, wage and hourly violations are pervasive issues. In fiscal year 2023, the U.S. Labor Department secured over $35.5 million in back wages for nearly 18,000 construction employees, more funds than any other U.S. industry. Wage and hour violations can manifest in various ways, such as the misclassification of employees or employees not reported by their employer. Such violations frequently lead to the denial of benefits and unpaid overtime, which adversely impact workers' livelihoods and undermine their right to fair compensation. The construction industry is labor intensive, paying workers with lower wages than properly classified and reported employees is an impetus for some contractors to gain an unfair bidding edge.
The California cities of Carson, San Diego, Irvine, Riverside, Santa Ana, and San Diego County have adopted ord...
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