Item 20 - Amending Subcontractor Disclosure Ordinance

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City Council www.santa-ana.org/city-council Item # 20 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report March 7, 2023 TOPIC: Amending Subcontractor Disclosure Ordinance AGENDA TITLE: Discuss and Consider Directing the City Manager and City Attorney to Direct Staff to Prepare an Ordinance Amending Section 8-6 of the Santa Ana Municipal Code to Increase Transparency and Accountability Regarding Contractor and Subcontractor Disclosures RECOMMENDED ACTION Direct staff to prepare Ordinance 23-___ An Ordinance of the City Council of the City of Santa Ana, Amending Section 8-6 of Chapter 8 of Article 1 of the Santa Ana Municipal Code Relating to Disclosure of License and Insurance Requirements of Contractors and Subcontractors for adoption at the first regularly scheduled City Council meeting in April 2023. DISCUSSION Construction workers are often exploited by contractors doing business in Santa Ana, often in the form of wage theft, fraudulent business practices, and unsafe working conditions. The City’s Municipal Code currently requires contractors to disclose information regarding their subcontractors, including insurance and license information. However, such disclosures do not include information on pending and/or prior enforcement actions for any state or federal labor violations. Amending the City’s Code to ensure such disclosures occur—and enforcing existing fines and imposing stop work orders for failure to comply with disclosure requirements—helps to ensure safe working conditions and transparent and fair contracting without slowing down construction or making it harder to build in Santa Ana. Fines collected by the City shall go to offset any administrative and enforcement costs relating to the existing and amended ordinance. EXHIBIT(S) 1. Draft Ordinance Submitted By: Councilmember Thai Viet Phan