Attachment D -
February 27, 2020
Staff Report
City Council Staff Report
Date: February 27, 2020 NEW BUSINESS
Subject: DISCUSSION REGARDING COMMUNITY WORKFORCE
AGREEMENTS AND LABOR PEACE AGREEMENTS
From: David H. Ready, City Manager
Initiated by: Jeffrey S. Ballinger, City Attorney
SUMMARY
At the January 13, 2020 Business Retention Standing Subcommittee, the Subcommittee heard a presentation regarding Community Workforce Agreements (CWA) and Labor Peace Agreements. The Subcommittee also heard from various stakeholders, including representatives of labor groups and the business community.
Based on that discussion, the Subcommittee recommended that the City Council conduct a discussion of CWAs and Labor Peace Agreements, in order to possibly provide direction to City staff to bring back policies that would require such agreements for City projects.
RECOMMENDATION:
Provide direction to staff regarding the applicability of CWAs and/or Labor Peace Agreements.
BACKGROUND:
In the public sector, a Community Workforce Agreement is a variation of a Project Labor Agreement (PLA). A PLA is pre-hire, collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project or class of projects. A Community Workforce Agreement (CWA) is a PLA that includes a targeted hire provision designed to create local jobs and/or achieve other social welfare goals through the construction projects they apply to. Such social welfare goals can include targeted hiring of low-income individuals, veterans, former offenders, residents of low-income neighborhoods, at-risk youth, and (for projects with federal funds) percentage goals for racial minorities and women.
ITEM NO. S P,.
2 City
Council
Staff
Report
February
27,
2020 -
Page
2 Community
Workforce
Agreements
and
Labor
Peace
Agreements
A
Labor
Peace
Agreement,
at
least
as
defined
by
California
cannabis
law,
is
defined
as
an
agreement
between
a
cannabis
licensee
and
any
bona
fide
labor
organization
that,
at
a
minimum,
prohibits
labor
organizations
and
members
from
engaging
in
picketing,
work
stoppages,
boycotts,
and
any
other
economic
interference
with
the
applicant's
business.
(Bus.
&
Prof.
Code,
§
26001
(x).)
This
agreement
must
include
a
provision
that
the
cannabis
business
has
agreed
not
to
disrupt
efforts
by
the
bona
fide
labor
organization
to
communicate
with,
and
attempt
to
organize
and
represent,
the
business'
employees.
The
agreement
must
also
provide
a
bona
fide
labor
organization
access
at
reasonable
times
to
areas
in
which
the
business'
employees
work,
for
the
purpose
of
meeting
with
employees
to
discuss
their
right
to
representation,
employment
rights
under
state
law,
and
terms
and
conditions
of
employment.
Finally,
under
state
law,
the
agreement
need
not
mandate
any
particular
method
of
election
or
certification
of
the
bona
fide
labor
organization.
This
staff
report
discusses
each
of
these
types
of
agreements
and
the
social,
fiscal
and
legal
issues
involved
with
each
of
them.
STAFF
ANALYSIS:
Community
Workforce
Agreements
As
mentioned
above,
a
Community
Workforce
Agreement
is
a
pre-hire,
collective
bargaining
agreement
with
one
or
more
labor
organizations
that
is
designed
to
achieve
one
or
more
social
welfare
goals.
The
predecessors
of
these
agreements,
PLAs,
have
been
in
use
in
the
United
States
since
the
1930s.
PLAs
first
became
the
subject
of
significant
public
debate
in
the
1980s.
In
these
instances,
government
entities
made
signing
PLAs
a
condition
of
working
on
taxpayer
funded
projects.
This
type
of
PLA,
also
known
as
a
government-mandated
PLA,
is
technically
distinct
from
a
PLA
that
is
voluntarily
entered
into
by
contractors
on
public
works
project.
However,
for
purposes
of
this
discussion,
all
references
to
CWA
or
PLA
will
refer
to
CWAs
or
PLAs
that
are
required
by
a
city
program.
The
use
of
CWAs
is
supported
by
many
construction
unions,
and
some
policymakers,
who
posit
that
CWAs
are
needed
to
ensure
that
large,
complex
projects
are
completed
on
time
and
on
schedule.
According
to
those
who
support
the
use
of
such
agreements,
CWAs
enable
project
owners
to
control
costs
and
ensure
that
there
are
no
disruptions
to
the
construction
schedule,
for
example
from
strikes.
In
particular,
proponents
of
CWAs
point
to
the
inclusion
of
clauses
in
the
agreement
that
agree
to
establish
labor
management
problem-solving
committees
that
deal
with
scheduling,
quality
control,
health
and
safety,
and
productivity
problems
during
the
project.
They
also
argue
that
CWAs
ensure
that
the
workforce
hired
has
received
training
and
is
of
high
quality.
In
addition
to
the
stated
benefits
to
project
owners,
supporters
of
CWAs
also
argue
that
CWA
use
has
a
positive
impact
on
local
communities,
through
set
goals
for
local
hiring
and
provision
of
education.
One
issue
that
frequently
arises
during
discussions
of
CWAs
is
cost.
Those
who
oppose
CWAs
argue
that
CWAs
impact
competition
for
project
bids,
reducing
the
3 City
Council
Staff
Report
February
27,
2020
-Page
3 Community
Workforce
Agreements
and
Labor
Peace
Agreements
number
of
potential
bidders
as
non-union
contractors,
they
argue,
are
less
likely
to
bid
due
to
the
potential
restrictions
a
CWA
would
pose.
According
to
opponents
of
CWAs,
the
requced
competition
leads
to
higher
bids
and
a
higher
cost
for
the
project
owner.
For
example,
according
to
Max
Lyons
of
the
Employee
Policy
Foundation,
the
cost
of
a
project
under
a
CWA
is
increased
up
to
7%,
since
in
many
cases
contractors
are
required
to
pay
their
employees
the
union
wage,
rather
than
the
government
determined
prevailing
wage.
(Tuerck,
David
G.
(Winter
2010)
"Why
Project
Labor
Agreements
Are
Not
In
The
Public
Interest".
Cato
Journal.)
Other
studies
out
of
Massachusetts,
Connecticut
and
New
York
concluded
that
PLA
increase
construction
costs
by
as
much
as
20%.
(Beacon
Hill
Study
Finds
PLAs
Increase
Cost
of
School
Projects
in
New
York
(May
2006).)
In
response,
supporters
of
CWAs
point
out
that,
by
including
requirements
for targeted
hiring
or
a
certain
proportion
of
local
workers
to
enter
union
apprenticeship
programs
working
on
the
construction
program,
CWAs
can
be
used
to
help
local
workers
gain
employment
and
trade
skills.
This,
proponents
point
out,
re-injects
the
tax
dollars
paying
for
these
infrastructure
projects
back
to
the
communities.
(UCLA
Labor
Center,
"Construction
Careers
for
our
Communities."
p.
5,
46";
Cornejo,
Jackie.
Building
Opportunity:
Investing
in
Our
Future
through
a
Port
Construction
Careers
Policy.
Los
Angeles
Alliance
for
a
New
Economy
(2009)";
Project
Labor
Agreements
in
Iowa:
An
Important
Tool
for
Managing
Complex
Public
Construction
Projects,
Ralph
Scharnau
&
Michael
F.
Sheehan,
The
Iowa
Policy
Project
(2004)".)
Results
of
studies
addressing
the
cost
impact
of
CWAs
on
construction
projects
have
varied.
For
instance,
one
such
study
found
that
they
may
not
lead
to
greater
costs,
such
as
a
2002
paper
by
the
Harvard
University
Joint
Center
for
Housing
Studies,
which
states
that
the
increased
costs
cited
by
opponents
of
CWAs
is
based
on
bids
rather
than
end
costs.
According
to
the
paper,
a
project's
end
costs
would
usually
be
higher
than
bid
costs
due
to
expenses
that
arise
during
construction.
(Project
Labor
Agreements.
John
T.
Dunlop,
Harvard
University
Joint
Center for
Housing
Studies
(2002).)
In
addition,
a
2004
report
by
the
Director
of
General
Services
for
Contra
Costa
County,
California
reported
that
bids
for
five
of
eight
projects
subject
to
a
CWA
were
lower
than
the
architect/engineer
cost
estimate.
A
2009
paper
concluded
that
there
was
difficulty
in
identifying
the
effect
of
CWAs
on
cost
in
construction
of
schools,
due
to
the
differences
between
schools
built
with
CWAs
and
those
built
without
them.
The
report
stated
that
there
was
not
any
statistically
significant
evidence
for
an
increase
in
costs
for
school
construction.
(Project
Labor
Agreements'
Effect
on
School
Construction
Costs
in
Massachusetts.)
Likewise,
in
1998
the
Government
Accountability
Office
produced
a
report
on
CWAs
that
noted
an
overall
lack
of
data
but
reported
that
both
"proponents
and
opponents
of
the
use
of
[CWAs]
said
it would
be
difficult
to
compare
contractor
performance
on
federal
projects
with
and
without
[CWAs]
because
it
is
highly
unlikely
that
two
such
projects
could
be
found
that
were
sufficiently
similar
in
cost,
size,
scope,
and
timing."
The
GAO
report
concluded
that
it
would
be
difficult
to
draw
"any
definitive
conclusions"
on
the
impact
of
PLAs
on
performance.
(Project
Labor
Agreements:
The
Extent
of
Their
Use
and
Related
Information.
U.S.
General
Accounting
Office,
GAO/GGD-98-82,
May
1998.)
4 City Council Staff Report
February 27, 2020 -Page 4
Community Workforce Agreements and Labor Peace Agreements Finally, recent discussions with several local contractors have suggested that costs to City public works projects would not increase appreciably, since contractors and subcontractors are already required to pay State or federal prevailing wages, and in many cases, contractors are already using union labor.
Staff was able to perform research and found examples of CWAs in other jurisdictions.
Among the examples are:
Jurisdiction Year
Long Beach C~y 2016
College
Community 2008
Redevelopment
Agency of Los
Angeles
Los Angeles 2001
Community College
District
San Francisco 2003
Public Utilities
Commission Water
System
Improvement
Program
City of Los Angeles 2001
Type of Project
Specified College
building projects,
including buildings, a
parking structure, an
aquatics center, and
security systems.
Public works projects of
$500,000 or more.
Projects on CRA land.
Private projects
receiving $1,000,000 or
more from CRA.
General construction
projects receiving at
least $225,000 in school
bond funds.
Specialty construction
projects receiving at
least $25,000 in school
bond funds.
All construction work on
the Hetch Hetchy Water
System upgrade.
Any work on certain,
specific City public
works projects-North
East Sewer Interceptor,
Fire Station 64, Harbor
Community Benefit
40% goal for veterans' and local
residents' employment, which
includes a goal of 15% for local
residents within district boundaries.
5% goal for Small Business and
Minority/Women-owned Enterprises
to participate as contractors or
suppliers.
30% of all work hours under the
agreement to be performed by
residents of law-income
neighborhoods.
10% of the total work hours are
reserved for at-risk and hard-to
employ workers.
Apprentice work hours by
Community Area and Local
Residents.
30% of work hours on covered
construction to be performed by
workers that live in the same zip
code as the project, with further
targeting of some jobs at-risk job
seekers.
30% of work hours should be
performed by apprentices, and half of
all apprentices that work on these
jobs in their first year
Contractors must exercise "good
faith efforts" to employ apprentices in
amounts consistent with State
standards.
30-40% of new construction jobs
created be filled by residents of
neighborhoods adjacent to the
project.
10-15% of construction work hours
5 City Council Staff Report
February 27, 2020 -Page 5
Community Workforce Agreements and Labor Peace Agreements Los Angeles Unified 2003
School District
Port of Oakland 2001
City of Santa Ana 2017
San Francisco 2007
Station/Jail, Metro
Detention Center, Police
Administration Building,
etc.
New or Rehabbed
School Construction
funded by local school
bonds.
All work under the Port's
5 Year capital program,
as well as unplanned
projects of $50,000 or
more
Construction or
demolition work on City
public works projects,
over $250,000 for
specialty work or
$500,000 for general
work.
Construction work on
be performed by at-risk workers,
including workers from poor
households and workers with a
history of incarceration or receipt of
public assistance, among other
things.
50% of the work hours be performed
by residents of zip codes served by
one of the 8 school districts that
make up the unified district.
30% of the work be completed by
apprentices.
The school district also operates a
pre-apprenticeship program, We
Build, overseen by a joint labor
management board. Program
delivers a 10-week skills and safety
training curriculum developed in
conjunction with the Building Trades.
There is no requirement that
contractors hire their workforce
through We Build. However, the pre
apprenticeship program provides a
pipeline of trained and oriented
workers, many of whom meet the
targeting requirements established
by the CWA. We Build's training
model enables its graduates to better
compete with other aspiring
apprentices. The program boasts a
90% placement rate.
50% of all construction hours be
worked by residents of the Port's
local impact area, which includes the
neighboring communities of
Alameda, Emeryville, Oakland and
San Leandro.
20% of all hours worked be
performed by apprentices from the
local impact area, providing an entry
point into construction careers for
new and aspiring construction
workers.
30% of the total works hours to be
performed from workers residing
within the City, and Veterans
regardless of where they reside.
Apprentices with certain
requirements generally to constitute
up to 30% of each craft's workforce.
Goal that 20% of work hours be
6 City Council Staff Report
February 27, 2020 -Page 6
Community Workforce Agreements and Labor Peace Agreements Public Utilities
Commission
City of New York 2009
City of Perris 2018
Cleveland
Hospital
University performed by Cleveland residents.
Renovation and
rehabilitation of city
owned buildings;
Eleven large-scale new
construction projects,
including the Police
Academy and a branch
library, among others;
Funding for renovation
and rehabilitation of
New York Public
Schools, overseen by
the New York City
School Construction
Authority;
Renovation and
rehabilitation of water
systems facilities
controlled by the New
York City Department of
Environmental
Protection.
City public works
projects of $1,000,000
or more.
Additionally, the agreement
formalizes the existing relationship
between the local Trades Council
and the pre-apprenticeship
curriculum offered to 9-12 grade
students at Max S. Hayes Vocational
High School. The unions agree to
participate in development of the
curriculum at Max Hayes, and to use
reasonable efforts to require
contractors and unions to provide
jobs to Max Hayes building trades
graduates. The trades agree to
devote one class of the joint labor
management pre-apprenticeship
program to Max Hayes building
trades graduates. Graduates receive
direct entry into union construction
apprenticeships. Those graduates
who get into the program by virtue of
graduation from Max Hayes high
school are to be employed on
University Hospital construction
projects that are covered by the
CWA.
45% of new apprentice slots be filled
by New York City residents including
public high school graduates,
veterans, women, housing authority
and Section 8 residents, and adults
in need of economic opportunity.
A commitment that affiliated unions
will reserve apprenticeship slots for
direct entry of these groups, meaning
that qualified apprenticeship
candidates who are also a member
of one of these named groups have
an easier time getting into an
apprenticeship program.
30% of the labor and craft positions
be workers residing within the City
and local zip codes
7 City Council Staff Report
February 27, 2020 -Page 7
Community Workforce Agreements and Labor Peace Agreements 10% be disadvantaged workers
and/or veterans residing within the
City or County.
Goal that 30% of total worked hours
be by workers residing within the City
and local areas, as well as veterans,
regardless of residence.
Therefore, should the City Council wish to proceed with implementing a CWA program, the first issue to be resolved is, what one or more types of community benefits does the City Council wish to achieve? Is it local hires, veteran hires, lower income hires, apprenticeship opportunities? These are all legitimate social welfare benefits that can accrue to a community as a result of a CWA program.
The next issue to be resolved is what size of City projects (usually measured in dollars) does the City Council wish to be subject to CWAs. Some, but not all, of the above referenced projects include a dollar threshold, i.e., $250,000, $1,000,000, $100,000,000. While such a threshold is not necessary, the City Council may want to consider such a threshold, if the Council wishes to proceed incrementally.
Labor Peace Agreements
Unlike Community Workforce Agreements, Labor Peace Agreements do not specifically require the use of union labor. Instead, Labor Peace Agreements set out general parameters of a workplace environment within which unionization can be fostered (though not required). So, for example, under California's cannabis statutes, cannabis operators with 20 or more employees must provide a notarized statement that the operator will enter into, or has already entered into, and will abide by a Labor Peace Agreement. The state definition of a Labor Peace Agreement is an agreement between a cannabis licensee and any bona fide labor organization that, at a minimum, prohibits labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicant's business. (Bus. & Prof. Code, § 26001 (x).)
The agreement must include a provision that the cannabis business has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the business' employees. In addition, the agreement must also provide a bona fide labor organization access at reasonable times to areas in which the business' employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. Finally, the Labor Peace Agreement need not mandate any particular method of election or certification of the bona fide labor organization.
Some cities have recently adopted ordinances that reduce the minimum number of employees of cannabis businesses from 20, to a lower number. For instance, Cathedral City recently adopted an ordinance that requires cannabis operators with 10 or more employees to enter into a Labor Peace Agreement. See Attachment 1.
Likewise, the City of Pomona has adopted an ordinance that requires cannabis 8 City Council Staff Report
February 27, 2020 -Page 8
Community Workforce Agreements and Labor Peace Agreements permittees with 5 or more employees to enter into, and abide by, a labor peace agreement. See Attachment 2. A proposed draft ordinance similar to Cathedral City's is attached, for discussion purposes, as Attachment 3.
Like PLAs or CWAs, Labor Peace Agreements have withstood legal challenges when the public agency imposing them is doing so to protect a proprietary, as opposed to a regulatory interest. At the state level, the State of California is asserting a proprietary interest in the significant sums of tax revenue that are expected to be received from the cannabis industry. Again, as with the PLAs/CWAs, as the application of Labor Peace Agreements moves away from the City's proprietary interests and towards its regulatory interests, the legal issues become less clear.
Therefore, the City Council is being asked to consider whether to extend the application of the State's Labor Peace Agreement requirement to those cannabis businesses that employ fewer than 20 employees.
ENVIRONMENTAL IMPACT:
The requested City Council action is not a "Project" as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (2) "Continuing administrative or maintenance activities, such as purchases for supplies, personnel related actions, general policy and procedure making .... " Should the City Council provide direction to bring back a program to implements CWAs and/or labor peace agreements, such action would constitute general policy and procedure making. 9 City Council Staff Report
February 27, 2020 -Page 9
Community Workforce Agreements and Labor Peace Agreements FISCAL IMPACT:
As discussed above, there is conflicting information regarding the fiscal impacts of Community Workforce Agreements and Labor Peace Agreements. Some reports estimate that Community Workforce Agreements may increase the cost of public works projects anywhere from 7% to 20%. On the other hand, conversations with local contractors have indicated that there may be only insignificant increases. Finally, no studies have been found that account for the secondary impacts of CWAs, in terms of the benefits to the community resulting from increased employment and apprentice opportunities. As such, it is not possible to say definitively what the fiscal impacts of these agreement programs are.
SUBMITTED:
~~
Marcus L. Fuller, MPA, P.E., P.L.S.
Assistant City Manager/City Engineer
City Attorney
ATTACHMENTS:
<
J2~ -:&..-----~ ,,
David H. Ready, E.
City Manager
1. Cathedral City Cannabis Labor Peace Agreement
2. Pomona Cannabis Labor Peace Agreement
3. Draft City of Palm Springs Cannabis Labor Peace Agreement 10 ATTACHMENT 1
11 ORDINANCE
NO.
817
AN
ORDINANCE
OF
THE
CllY
COUNCIL
OF
THE
CITY
OF
CATHEDRAL
CITY
CALIFORNIA
AMENDING
CHAPTER
5.88 OF
THE
CATHEDRAL
CITY
MUNICIPAL
CODE
TO
REQUIRE
CANNABIS
BUSINESSES
TO
ENTER
INTO
LABOR
PEACE
AGREEMENTS
AS
A
CONDITION
OF
LICENSURE
RENEWAL
WHEREAS,
Business
and
Professions
Code
section
26051.5
requires
every
cannabis
business
with
20 or
more
employees
seeking
a license
to
operate
from
the
State
to
enter
into
a
labor
peace
agreement;
and
WHEREAS,
the
City
Council
desires
to
make
a labor
peace
agreement
a requirement
of
obtaining
a City
cannabis
business
license
renewal
for
all
cannabis
businesses
with
1 O
or
more
employees.
THE
CITY
COUNCIL
OF
THE
CITY
OF
CATHEDRAL
CITY
DOES
ORDAIN
AS
FOLLOWS: SECTION
1. Amendment
of
Chapter
5.88. Chapter
5.88 (Cannabis
Businesses)
of
the
Cathedral
City
Municipal
Code
is
amended
as
follows: A.
Section
5.88.055(&)
Is
amendment
to
add
a
new
subparagraph
4 and
renumber
the
existing
subparagraph
4 to
5. •4.
For
licensees
that
have
10 or
more
full-time
equivalent
non-supervisorial
employees,
proof
that
the
licensee
has
entered
into
and
abided
by
the
terms
of
a
labor
peace
agreement.• B.
Section
5.88.025
Is
amended
to
insert
the
following
definition
in
alphabetical
order.
"Non-supervisorial
employee•
means
an
individual
employed
by
the
licensee
that
does
n9t
have
the
authority
to
hire,
fire,
transfer,
suspend,
lay
off,
recall,
promote,
discharge,
assign,
reward,
or
discipline
other
employees,
or
responsibility
to
direct
them
orto
adjust
their
grievances,
or
effectively
to
recommend
such
action,
if,
in
connection
with
the
foregoing,
the
exercise
of
that
authority
is
not
of
a
merely
routine
or
clerical
nature,
but
requires
the
use
of
independent
judgment
For
the
purposes
of
this
definition,
an
individual
shall
not
be
considered
an
employee
of
a
licensee
if
the
individual
is
working
for
the
licensee
pursuant
to
a
written
agreement
that
expressly
states
the
individual
is
an
independent
contractor.•
SECTION
2. CEQA.
The
City
Council
hereby
finds
that
this
Ordinance
is
exempt
from
the
California
Environmental
Quality
Act
(CEQA)
under
Section
15061(b)(3)
of
the
State
CEQA
Guidelines
because
it can
be
seen
with
certainty
that
this
Ordinance
does
not
have
the
potential
to
cause
a
significant
effect
on
the
environment.
SECTION
3. Effective
Date.
This
Ordinance
shall
be
effective
30 days
from
and
after
its
final
passage.
Notwithstanding
the
foregoing,
the
City
Council
hereby
mandates
a
grace
period
of
ninety
(90)
days
from
the
effective
date
of
this
Ordinance
to
educate
beverage
vendors
of
the
terms
of
this
Ordinance,
during
which
time
no
action
shaU
be
taken
by
the
City
to
enforce
this
Ordinance.
12 SECTION 4. Severability.
If any. section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, then such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Cathedral City hereby declare they would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that anyone or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstit~onal.
SECTION 5. Publlcatlon.
The City clerk is authorized and directed to cause this Ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Section 36933(a) or, to cause this Ordinance to be published in the manner required by law using the alternative summary and pasting procedure authorized under Government Code Section 39633(c).
INTRODUCED at the regular meeting of Cathedral City City Council on the 14th day of November, 2018.
APPROVED AND ADOPTED this 28th day of November, 2018.
---·
ATTEST: APPROVED AS TO FORM:
' Eric S. Vail, City Attorney
13 I, TRACEY
R.
MARTINEZ,
CITY
CLERK
of
the
City
of
Cathedral
City,
do
hereby
certify
that
the
foregoing
Ordinance
was
introduced
on
the
14 th
day
of
November
201
a.
and
adopted
at
a regular
meeting
of
the
City
Council
of
the
City
of
Cathedral
City
held
on
the
12 th
day
of
December,
2018
by
the
following
vote:
AYES:
Councilmembers
Gutierrez,
Gregory
and
Aguilar;
Mayor
Pro
Tem
Carnevale
and
Mayor
Prttis
NOES:
None
ABSENT:
None
ABSTAIN:
None
14 ATTACHMENT 2
15 ORDINANCE NO. 4257
AN ORDINANCE OF THE CITY OF POMONA, CALIFORNIA, AMENDING THE POMONA CITY CODE BY ADDING CHAPTER 68, "COMMERCIAL
CANNABIS BUSINESSES"
WHEREAS, on February 4, 2008, the City Council adopted Ordinance No. 4096 to prohibit the establishment and operation of medical marijuana dispensaries citywide and on January 11, 2016 City Council adopted Ordinance No. 4215, amending the Pomona Zoning Ordinance to prohibit marijuana cultivation citywide;
WHEREAS, on February 22, 2016 City Council adopted Ordinance No. 4217, amending Chapter 34 of the Pomona City Code to add Article IX relating to the prohibition of marijuana deliveries citywide;
WHEREAS, on November 8, 2016, California voters approved Proposition 64, titled the "Adult Use of Marijuana Act" (the "AUMA") and enacted a state statutory scheme legalizing, controlling, and regulating the cultivation, processing, manufacturing, distribution, testing, and sale of nonmedical ("adult-use" or "recreational") cannabis, including cannabis products, for use by adults twenty-one (21) years of age and older;
WHEREAS, the following percentages of the populations for the respective jurisdictions voted affirmatively to pass AUMA: 57.40 percent statewide; 59.5 percent in Los Angeles County; and 57 percent in City of Pomona;
WHEREAS, on June 27, 2017, Governor Brown signed Senate Bill 94, the "Medicinal and Adult-Use Cannabis Regulation and Safety Act" ("SB 94" or the "MAUCRSA"). SB 94 creates one state regulatory structure for medical and adult-use commercial cannabis activities, reconciling AUMA, with the Compassionate Use Act of 1996 (Proposition 215) and MCRSA (collectively referred to as ''the Act"). SB 94 provided that a state license will not be approved for a business to engage in Commercial Cannabis Activity if the business activity violates any local ordinance or regulation;
WHEREAS, in preparation for the implementation of MAUCRSA, in November 2017, the three State licensing authorities charged with licensing and regulating commercial cannabis activities in California, the Bureau of Cannabis Control ("BCC"), the California Department of Food and Agriculture ("CDF A"), and the California Department of Public Health ("CDPW'), commenced releasing emergency regulations, outlining the standards and licensing procedures for both medicinal and adult-use commercial cannabis, and began issuing licenses for such activities on January 1, 2018;
WHEREAS, on November 6, 2017, City Council passed Ordinance 4241, to explicitly prohibit Commercial Cannabis Activity citywide, and Ordinance 4242, which established a -1-
16 e.
Testing
Laboratories
(only):
For
applicants
seeking
to
operate
a
testing
laboratory,
describe
operating
procedures
as
required
by
the
applicable
state
law
and
regulations,
with
references
to
the
applicable
state
law
or
regulation
requiring
same.
(1
t)
For
applicants
with
five
or
more
employees,
the
applicant
shall
attest
that
the
applicant
will
enter
into
a labor
peace
agreement
and
will
abide
by
the
terms
of
the
agreement,
and
the applicant
shall
provide
a copy
thereof
to
the City.
For
applicants
that
have
not
yet
entered
into
a labor
peace
agreement,
the
applicant
shall
provide
a
notariz.ed
statement
indicating
that
within
30-days
of
licensure
the
applicant
will
enter
into
and
abide
by
the
labor
peace
agreement.
( 12)
All
applicants
shall
submit
a workforce
plan
that
includes
at
least
the
following
provisions:
(1)
commitment
for
300/4
of
employees
to
be
local
hires;
this
local
hires
requirement
is
satisfied
when
a
business
shows
that
it
has
either
hired
or
made
a
good
faith
effort
to
hire
bona
fide
residents
of
Pomona
who
have
not
established
residency
after
application
for
employment
with the
pennittee;
(2)
commitment
to
offer
apprenticeships
and/or
compensation
for
continuing
education
in
the field;
and
(3)
pay
a living
wage
to
its
employees.
(13)
Collective
Bargaining
Agreement:
If
applicable,
the
applicant
shall
submit
current
collective
bargaining
agreement
with
labor
organization
that
currently
represents
cannabis
workers
in
the
United
States.
( 14)
Seller's
Permit:
The
applicant
shall
provide
a
valid
seller's
pennit
number
issued
by
the
California
Department
of
Tax
and
Fee
Administration,
if
applicable.
If
the
applicant
has
not
yet
received
a seller's
permit,
the
applicant
shall
attest
that
the
applicant
is
or
will
before
commencing
operations,
apply
for
a seller's
permit.
( 15)
Indemnification
Agreement:
To
the
fullest
extent
permitted
by
local,
state
and
federal
law,
the
City
shall
not
assume
any
liability
whatsoever
with
respect
to
having
issued
a
Commercial
Cannabis
Pennit
or
otherwise
approving
the
operation
of
any
commercial
cannabis
business.
As
a condition
to
the
approval
of
any
Commercial
Cannabis
Pennit,
the
applicant
is
to
execute
a
separate
Indemnification
Agreement
prepared
by
the
City
that
fully
indemnifies
the
City
for
all
liabilities
associated
with
the
Commercial
Cannabis
Permit,
the
Commercial
Cannabis
Pennittee's
Commercial
Cannabis
Activities,
and
any
action
taken
by
the
Cannabis
Permittee.
The
Indemnification
Agreement
shall
include
the
defense
of
the
City
and
reimbursement
of
all
fees,
costs
and
expenses
incurred
by
the
City
related
to
any
action
arising
from
the
Agreement.
(16)
Payment
of
Application
Fee:
Each
applicant
shall
pay
the
applicable
fee(s)
pursuant
to
this
Chapter.
(b)
Background
Check.
Pursuant
to
California
Penal
Code
Sections
111
OS(b
)( 11)
and
13300(b
)(1
t ),
which
authorizes
City
authorities
to
access
state
and
local
summary
criminal
-19-
17 ATTACHMENT
3 18
ORDINANCE
NO.
AN
ORDINANCE
OF
THE
CITY
COUNCIL
OF
THE
CITY
OF
PALM
SPRINGS,
CALIFORNIA,
ADDING
PALM
SPRINGS MUNICIPAL
CODE
SECTION
5.55.115
TO
REQUIRE
CANNABIS
BUSINESSES
TO
ENTER
INTO
LABOR
PEACE
AGREEMENTS
AS
A
CONDITION
OF
CANNABIS
BUSINESS
LICENSURE,
TRANSFER
OR
RENEWAL
City
Attorney's
Summary
This
ordinance
amends
the
City
of
Palm
Springs
Municipal
Code
requirements
for
cannabis
businesses
by
requiring
those
cannabis
businesses
with
five
(5)
or
more
employees
to
enter
into
a
labor
peace
agreement.
WHEREAS,
Business
and
Professions
Code
section
26051.5
requires
every
cannabis
business
with
20 or
more
employees
seeking
a
license
to
operate
from
the
State
to
enter
into
a
labor
peace
agreement;
and
WHEREAS,
the
City
Council
desires
to
make
a
labor
peace
agreement
a
requirement
of
obtaining
a
City
cannabis
business
license
issuance,
renewal
or
transfer
for
all
cannabis
businesses
with
five
(5)
or
more
employees.
NOW,
THEREFORE,
THE
CITY
COUNCIL
OF
THE
CITY
OF
PALM
SPRINGS
DOES
ORDAIN
AS
FOLLOWS:
SECTION
1. Findings.
That
the
findings
and
determinations
reflected
above
are
true
and
correct,
and
are
incorporated
by
this
reference
herein
as
the
cause
and
foundation
for
the
action
taken
by
the
and
through
this
Ordinance.
SECTION
2. Code
Amendment.
Section
5.55.115
of
the
Palm
Springs
Municipal
Code
is
hereby
added
to
read
as
follows:
"5.55.115
Labor
Peace
Agreements.
A.
For
applicants
or
permittees
that
have
five
(5)
or
more
full-time
equivalent
non-supervisorial
employees,
the
applicant
for
a
new
permit,
or
for
a
renewal
or
transfer,
shall
provide
proof,
satisfactory
to
the
City,
that
the
applicant
or
permittee
has
entered
into
and
will
abide
by
the
terms
of
a
labor
peace
agreement.
B.
For
purposes
of
this
section,
"non-supervisorial
employee"
means
an
individual
employed
by
the
licensee/permittee
that
does not
have
the
authority
to
hire,
fire,
transfer,
suspend,
lay
off,
recall,
promote,
discharge,
assign,
reward,
or
discipline
other
employees,
or
responsibility
to
direct
them
or
to
adjust
their
grievances,
or
effectively
to
recommend
such
55575.18000\32616353
. l
19 Ordinance
No.
Page2
action,
if,
in
connection
with
the
foregoing,
the
exercise
of
that
authority
is
not
of
a
merely
routine
or
clerical
nature,
but
requires
the
use
of
independent
judgment.
For
the
purposes
of
this
definition,
an
individual
shall
not
be
considered
an
employee
of
a
licensee/permittee
if
the
individual
is
working
for
the
licensee
pursuant
to
a
written
agreement
that
expressly
states
the
individual
is
an
independent
contractor."
SECTION
3. Effective
Date.
This
ordinance
shall
become
effective
30 days
after
its
adoption.
SECTION
4. Certification.
The
Mayor
shall
sign
and
the
City
Clerk
shall
certify
to
the
passage
and
adoption
of
this
Ordinance
and
shall
cause
the
same,
or
the
summary
thereof,
to
be
published
and
posted
pursuant
to
the
provisions
of
law.
SECTION
5. Severability.
If
any
section
or
provision
of
this
Ordinance
is
for
any
reason
held
to
be
invalid
or
unconstitutional
by
any
court
of
competent
jurisdiction,
or
contravened
by
reason
of
any
preemptive
legislation,
the
remaining
sections
and/or
provisions
of
this
ordinance
shall
remain
valid.
The
City
Council
hereby
declares
that
it
would
have adopted
this
Ordinance,
and
each
section
or
provision
thereof,
regardless
of
the
fact
that
any
one
or
more
section(s)
or
provision(s)
may
be
declared
invalid
or
unconstitutional
or
contravened
via
legislation.
PASSED,
APPROVED
BY
THE
PALM
SPRINGS
CITY
COUNCIL
THIS
DAY
OF
_______
, 2020.
ATTEST: ANTHONY
J.
MEJIA,
MMC
CITY
CLERK
GEOFF
KORS
MAYOR
CERTIFICATION
STATE
OF
CALIFORNIA
)
COUNTY
OF
RIVERSIDE
)
ss.
CITY
OF
PALM
SPRINGS
)
I,
ANTHONY
J.
MEJIA,
City
Clerk
of
the
City
of
Palm
Springs,
do
hereby
certify
that
Ordinance
No.
_
is
a
full,
true,
and
correct
copy,
and
was
introduced
by
the
City
Council
at
a
regular
meeting
held
on
the
_
day
of
______
, 2020,
and
adopted
at
a
regular
meeting
of
the
City
Council
held
on
the
_
day
of
______
, 2020,
by
the
following
vote:
55575.18000\32616353.l
20 Ordinance
No.
Page
3 AYES: NOES: ABSENT: ABSTAIN:
IN
WITNESS
WHEREOF,
I have
hereunto
set
my
hand
and
affixed
the
official
seal
of
the
City
of
Palm
Springs,
California,
this
___
day
of--=--;...;;.._
____
, 2020.
ANTHONY
J.
MEJIA,
MMC
CITY
CLERK
55575.18000\32616353.
l