Add Article XXIV to the Charter of the City of Santa Monica Section 2400 - Purposes
The purposes of this Article are to: preserve and protect the character of housing, neighborhoods, and the community; maintain social and economic diversity; protect the health and safety of Santa Monica residents; encourage the development of affordable housing within the limitations and capacity of Santa Monica's infrastructure and geography; and ensure the payment of living wages to the construction workers working on large projects in the City so they may live where they work. This Article will thereby preserve the public health, safety and welfare.
As a charter city, the City of Santa Monica has the authority to control its own housing plans and to establish minimum wages for various classes of workers. The residents of Santa Monica know what is best for their unique coastal city.
Section 2401 - Recitals
WHEREAS, the City of Santa Monica is experiencing serious traffic, transportation, pedestrian and vehicle safety, parking and density problems, which in a number of locations are unacceptable;
WHEREAS, in recent years there has been a sharp increase in the planning and construction of major developments in Santa Monica;
WHEREAS, real property value in Santa Monica has increased at a rate far exceeding market wages in the construction industry; and
WHEREAS, the Regional Housing Needs Allocation for Santa Monica for 2021-2029 is 8,895 units, with 6,168 of those units being affordable to low-income and/or very-low-income households.
Section 2402 - Definitions and Effect on Other Laws
"Affordable Housing Unit" shall mean any housing unit that is subject to a deed restriction, enforceable by the City of Santa Monica, requiring that the rent charged for the unit may not exceed twenty-four percent (24%) of the Area Median Income for Los Angeles County “Prevailing Wage” shall mean the prevailing wage determined by the Director of the California Department of Industrial Relations, according to the type of work and location of the Project. “Project” shall mean any construction, erection, addition to or structural alteration of any building or structure, on a lot located in whole or in part within the City of Santa Monica which requires the issuance of any building permit, foundation permit or grading permit.
Notwithstanding the definition above, “Project” shall not include:
a) any construction, addition or structural alteration that does not result, in combination with any continuing existing uses, in more than 2,500 square feet of floor area. b) any construction, erection, addition to or structural alteration of any building or structure, on a single lot that is no greater than 7,500 square feet Wherever this Article contains provisions which may conflict with the Santa Monica Municipal Code, and any other relevant ordinances, this Article shall prevail and supersede the applicable provisions of that Code.
Section 2403 – Standards for Construction and Improvements The City shall adopt ordinances and regulations that ensure sufficient parking, open and recreational space, and building heights consistent with the community and neighborhood character of Santa Monica’s diverse communities.
The City shall also adopt ordinances and regulations that encourage the ratification of Project Labor Agreements and Community Workforce Agreeements.
Section 2404 – Prevailing Wages
All workers employed on any Project in the City of Santa Monica, which includes commercial space, mixed-use, or more than ten (10) residential units on any single parcel, must be paid at least the applicable wage set forth in the tables below:
For Projects that include 10-50 residential units:
Percentage Affordable Housing Units Minimum Wage
At least 70% 0.8 times the Prevailing Wage
At least 50%, but less than 70% 0.9 times the Prevailing Wage At least 30%, but less than 50% Prevailing Wage
At least 10%, but less than 30% 1.2 times the Prevailing Wage Less than 10% 1.5 times the Prevailing Wage
For Projects that include 51-150 residential units:
Percentage Affordable Housing Units Minimum Wage
At least 70% 0.9 times the Prevailing Wage
At least 50%, but less than 70% Prevailing Wage
At least 30%, but less than 50% 1.2 times the Prevailing Wage At least 10%, but less than 30% 1.6 times the Prevailing Wage Less than 10% 2 times the Prevailing Wage
For Projects that include 151-500 residential units:
Percentage Affordable Housing Units Minimum Wage
At least 70% Prevailing Wage
At least 50%, but less than 70% 1.2 times the Prevailing Wage At least 30%, but less than 50% 1.6 times the Prevailing Wage At least 10%, but less than 30% 2 times the Prevailing Wage Less than 10% 2.5 times the Prevailing Wage
For Projects that include more than 500 residential units:
Percentage Affordable Housing Units Minimum Wage
At least 70% Prevailing Wage
At least 50%, but less than 70% 1.4 times the Prevailing Wage At least 30%, but less than 50% 1.8 times the Prevailing Wage At least 10%, but less than 30% 2.4 times the Prevailing Wage Less than 10% 2.7 times the Prevailing Wage
For Projects which include only commercial space or are mixed-use, workers employed on such Projects in the City of Santa Monica must be paid at least 1.5 times the Prevailing Wage, or the applicable amount set forth in the tables above, whichever is greater.
A Project may not be split up into several sub-projects in order to reduce the minimum wages required as set forth above.
The City Attorney is authorized to enforce the minimum wages set forth in this Section on behalf of any underpaid workers, as are any underpaid workers themselves, through an action in the Los Angeles Superior Court.
Section 2405 – Severability
If any provision of this Article or the application thereof to any person or circumstance is held to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other provisions, clauses or applications thereof which can be implemented without the invalid provisions, clause or application, and, to this end, the provisions and clauses of this ordinance are declared to be severable.