Ventura Municipal Code Art. 1 General Provisions

This chapter is adopted pursuant to the municipal affairs provision of the City Charter for the purpose of establishing minimum levels of compensation and benefits to be received by certain employees of the city of San Buenaventura, employees of contractors, subcontractors, and city financial aid recipients (CFAR) who work on contracts, projects, and programs funded by the city of San Buenaventura. (Ord. No. 2006-010, § 1, 6-5-06)

The city council finds as follows:

A. That minimum wage laws promote the general welfare by ensuring that workers can support and care for their families through their own efforts and without governmental assistance. However, workers who do not receive adequate wages must rely upon federal, state and local social services funded by local taxpayers.

B. The state of California has exercised its power to set a minimum wage higher than the minimum set by federal law in part because the cost of living in California is higher than in most states. The California State Legislature has recognized that localities may need to set more stringent labor standards for contracts relating to local expenditures than those set by state law and has therefore specifically authorized the adoption of such standards in Labor Code Section 1205. A number of California cities have exercised their power to establish laws requiring the payment of minimum wages for certain city services and contracts.

C. The city council recognizes that the California minimum wage is inadequate to meet the needs of workers in the city of San Buenaventura where the cost of living is higher than in many parts of the state. Through the provisions of this chapter, the city council intends to ameliorate the economic conditions of its workers and to improve on health benefits available for them and their families. (Ord. No. 2006-010, § 1, 6-5-06)

The definitions hereinafter set forth in this section shall govern the meaning and construction of the words and phrases used in this chapter except where the context of such words and phrases clearly indicates a different meaning or construction.

“City contractor” means a person or entity that enters into a service contract as defined under this chapter, with the city.

“City financial assistance recipient (CFAR)” means any person who receives financial assistance from the city, or a tenant or leaseholder of the city with rent below market rates as determined by the city.

“City representative” means the city manager or their designee.

“Covered employee” means an individual, other than a managerial, supervisory or confidential employee, who is permanently or temporarily employed (i) by the city; or (ii) by a contractor or subcontractor who has one or more service contracts with the city as defined by this chapter; or (iii) by a CFAR. “Covered employee” does not include the following:

1. An individual employed by the city that is under the age of 18.

2. An individual employed subject to a union collective bargaining agreement.

3. An individual providing volunteer services.

4. Trainees as defined under this chapter.

5. Individuals earning academic credits in exchange for services they provide the city.

“Covered employer” means the city, the San Buenaventura redevelopment agency, a CFAR, a service contractor, or subcontractor, and their assignees and successors in interest.

“Financial assistance,” for the purposes of this chapter, includes rent subsidies; rental or lease agreements below market rates; bond financing; tax increment financing by the San Buenaventura redevelopment agency; land write-downs; forgiveness of loans; and loans provided at below market rates. “Financial assistance” does not include any of the following:

1. Any grant award to any person or entity pursuant to any grant program run by the city including but not limited to the cultural funding program and the community partnership grant program.

2. City staff assistance.

“Medical benefits” means the health and/or dental benefits offered by covered employers to covered employees that the covered employer pays at least $2.75 per hour worked by the covered employees. For the purposes of this chapter, medical benefit providers and insurers shall be licensed and/or registered by the state of California.

“Service contract” means a contract, including any amendment thereto, between a person or entity and the city for the provision of services to the city or its citizens. “Service contract” does not include the following:

1. A contract awarded to an individual or entity under any grant program administered by the city including, but not limited to, the cultural funding program and the community partnership grant program.

2. A contract for the purchase or lease of goods, products or equipment, including delivery and installation which is incidental to the purchase or lease of such goods, products or equipment.

3. A contract subject to federal or state laws or regulations that would preclude application of the minimum wages listed in this chapter.

4. A contract between the city and another governmental entity.

5. A contract between the city and another financial or banking institution for financial or banking services.

6. A city franchise agreement that authorizes the use of the public right-of-way and other public easements for public utilities that benefit the city and its citizens and for other commercial purposes.

“Service subcontractor” means a person or entity, other than a covered employee, that enters into a contract with a contractor to assist the contractor in the performance of a service contract for the city.

“Trainee” means a person enrolled in a bona fide job-training program consistent with federal and state laws and designed to enable the employee to advance into a permanent position. For the purposes of this chapter a person cannot be considered a trainee for more than a total of one year.

“Union” means a bona fide labor organization whose primary purpose is the enhancement of employees’ working conditions, including wages, hours, and other terms and conditions of employment. (Ord. No. 2006-010, § 1, 6-5-06)

This chapter shall apply to:

A. All service contracts entered into or financial assistance provided after the effective date of this chapter whose combined total exceeds $25,000 during any fiscal year beginning July 1, 2006; or

B. Financial assistance provided after the effective date of this chapter which assistance meets the $25,000 threshold requirements above; or

C. Assignees and successors in interest of any contractor for services or related subcontractor or CFAR to which this chapter applies; or

D. City employees working greater than 1,000 hours in a calendar year after the effective date of this chapter. (Ord. No. 2006-010, § 1, 6-5-06)

The city council may grant whole or partial exemptions from the requirements of this chapter to a contractor, subcontractor or CFAR, at the time of approval of the agreement, if it determines that imposition of the requirements of this chapter would violate state or federal laws, would pose a significant risk to human health or the environment, or would result in undue economic hardship to the contractor, subcontractor, CFAR, or the city. A contractor, subcontractor or CFAR that desires a determination by the city council that it will be exempted from the requirements of this chapter must provide the city, along with the bid, proposed contract, application or proposed agreement, the following in writing:

A. A request that it desires to be exempted from the requirements of this chapter;

B. The specific state or federal laws, if applicable, that would be violated if the city imposed the requirements of this chapter;

C. A detailed explanation, of the reasons why, and supporting documents therefor, of the significant risk to human health or the environment, or the undue economic hardship the contractor, subcontractor or CFAR would suffer if subjected to the requirements of this chapter. (Ord. No. 2006-010, § 1, 6-5-06)

Covered employers shall pay covered employees a living wage of no less than the hourly rates set out in this chapter.

A. Minimum Hourly Rate Without Medical Benefits. If a covered employer does not pay its covered employees medical benefits as defined in this chapter, the initial rate of pay for a covered employee is $12.50 per hour.

B. Minimum Hourly Rate With Medical Benefits. The initial rate of pay of a covered employee shall be $9.75 per hour provided the covered employer pays its covered employees a minimum of $2.75 per hour worked, toward qualifying medical benefits for covered employees and their dependents. (Ord. No. 2006-010, § 1, 6-5-06)

The contract and financial assistance applicability limits set in Section 2.525.130 and the living wages provided for in Section 2.525.150 shall be adjusted by the city representative each July 1st beginning in 2007, by an amount corresponding to the previous year change (January to January) in the Consumer Price Index for Urban Wage Earners and Clerical Workers 1967=100 for Los Angeles-Riverside-Orange County, California. (Ord. No. 2006-010, § 1, 6-5-06)

A. Notice to Covered Employees.

1. Covered employers shall post, in a conspicuous place for their covered employees, the provisions of this chapter. The city representative shall determine the content, size and location of the posting for all covered employers.

2. Covered employers shall notify each affected covered employee in writing of the provisions of this chapter and the effect on the covered employees’ wages and benefits.

3. Documentation of notification shall be maintained in the covered employer’s records as described in subsection D of this section.

B. Medical Benefits. Proof that medical benefits are being paid toward covered employee medical benefits is required and must be submitted to the city at the time of execution of the contract or agreement subject to this chapter. Failure to comply with any part of this provision will subject the covered employer to the higher rate of pay in Section 2.525.150(A).

C. Earned Income Credit. Covered employers shall inform their covered employees that they may be entitled to the federal Earned Income Credit (EIC) under the Internal Revenue Code of 1954, 26 U.S.C. Section 32 and shall make available to covered employees forms or other appropriate documents to assist in securing the advance EIC payment.

D. Records. Covered employers shall maintain all documents pertaining to contracts that must comply with this chapter for a minimum of two years following completion or termination of the subject contract. City representative shall be permitted to review and make copies of such documentation at all reasonable times during performance or following completion or termination of contracts. (Ord. No. 2006-010, § 1, 6-5-06)

Neither the city, the San Buenaventura redevelopment agency, covered employer, nor CFARs shall discharge, reduce the compensation of or otherwise discriminate against any covered employee for (A) making a complaint to the city, participating in any of its proceedings, using civil remedies to enforce their rights, or otherwise asserting their rights under this chapter or (B) testifying as a witness or otherwise submitting evidence in support of another covered employee’s complaint. (Ord. No. 2006-010, § 1, 6-5-06)