CC SR 20180717 04 - Hospitality Initiative Calling for ElectionRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 07/17/2018
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Consider certifying initiative measure which would adopt Chapter 5.40 (“Hospitality
Working Conditions”) to Rancho Palos Verdes Municipal Code, adding new regulations,
protections, and procedures concerning wages, hours, work, transit, panic buttons,
responses to threatening conduct, and records for employees of large hotels, golf
courses, and amusement parks; and consider taking action to either adopt the ordinance
or order an election for the voters to decide whether to adopt the ordinance.
RECOMMENDED COUNCIL ACTION:
(1) Adopt Resolution accepting Certificate of Sufficiency; AND
(2) Receive and file the Fiscal Impact Analysis Report prepared by Kosmont
Companies; AND
(3) Option A - Adopt the Ordinance, without alteration; OR
(4) Option B - Submit the Ordinance, without alteration, to the voters at a Special
election occurring on either October 16, 2018, or October 23, 2018, pursuant to
California Elections Code § 1405(b); and
a. Adopt Resolution calling election and ordering the submission of a proposed
Ordinance to voters; and
b. Adopt Resolution requesting County services for the Special election; and
c. Adopt a Resolution setting priorities for filing written Argument(s) and
directing the City Attorney to prepare an Impartial Analysis; and
d. (optional) Adopt a Resolution authorizing Rebuttal Arguments; OR
(5) Option C - Submit the Ordinance, without alteration, to the voters at the next
Regular election occurring on November 5, 2019, pursuant to California Elections
Code § 1405(a), through Adoption of Resolution ordering the submission of a
proposed Ordinance to voters.
FISCAL IMPACT: Cost for a Special election to be held on October 16, 2018, or October
23, 2018, is estimated to be $200,000. Cost for including the measure on the ballot for
the regular election scheduled for November 5, 2019, is estimated at $5,000 and is
currently available in the City Clerk’s FY18-19 Budget.
Amount Budgeted: $75,000
Additional Appropriation: N/A
Account Number(s): 101-400-1311-5101
ORIGINATED BY: Emily Colborn, MMC, City Clerk/Elections Official
Bill Wynder, City Attorney
REVIEWED BY: Gabriella Yap, Deputy City Manager
APPROVED BY: Doug Willmore, City Manager
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ATTACHED SUPPORTING DOCUMENTS:
A. Resolution (Certificate of Sufficiency) (page A-1)
B. Fiscal Impact Analysis Report prepared by Kosmont (page B-1)
C. Ordinance (Option A - Adopting Initiative Measure) (page C-1)
D. Resolution (Option B - Calling election and ordering submission of initiative
measure to voters at a special election on either October 16, 2018 or October
23, 2018) (page D-1)
E. Resolution (Option B - Requesting election services from Los Angeles BOS)
(page E-1)
F. Resolution (Option B - Setting priorities for writing and filing argument(s) and
directing the City Attorney to prepare an impartial analysis) (page F-1)
G. Resolution (Option B - Authorize Rebuttal Arguments) (page G-1)
H. Resolution (Option C – Ordering submission of initiative measure to voters at
regular election scheduled for November 5, 2019) (page H-1)
EXECUTIVE SUMMARY:
The City Clerk’s Office received an initiative petition on May 2, 2018, to adopt for
employees of large hotels, golf courses, and amusement parks new regulations,
protections, and procedures concerning wages, hours, work, transit, panic buttons,
responses to threatening conduct, and records. Pursuant to California Elections Code §
9215, the initiative is found to be sufficient. Accordingly, State law provides the Council
shall either “adopt the ordinance” or “submit the ordinance, without alteration, to the
voters.”
Pursuant to Elections Code § 1405 if the Council orders the ordinance submitted to the
voters, then the election date, at the discretion of the Council, shall be either the City’s
next regular election “not less than 88 days after the order of the election,” which is
November 5, 2019; or, a Special election “held not less than 88 days nor more than 103
days after the order of the election” which provides a special election window (from the
July 17, 2018, Council meeting) of October 13, 2018, through October 28, 2018. The
available special election dates during that window of time are either Tuesday, October
16, 2018, or Tuesday, October 23, 2018.
In addition, at the June 19, 2018, City Council meeting Staff was directed to conduct a
Fiscal Impact Analysis Report on the proposed Ordinance as allowed by California
Elections Code § 9212.
BACKGROUND AND DISCUSSION:
Sufficiency of Initiative Petition
The City Clerk’s Office received an initiative petition on May 2, 2018, and officially filed
said petition on May 7, 2018, after a prima facie review was conducted pursuant to the
provisions of California Elections Code § 9210(b). Said petition was then forwarded to the
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Los Angeles County Register-Recorder for signature verification. The results of the
signature verification are as follows:
Number of signatures filed: 4,335
Numbers of signatures verified: 3,825
Number of signatures found sufficient: 3,000
Number of signatures found not sufficient: 825
Not sufficient because duplicate 20
Pursuant to California Elections Code § 9215, the required number of signatures to qualify
an initiative petition for submittal at a municipal election is not less than 10 percent of
registered voters of the City last reported by the county elections official to the Secretary
of State. It was determined that the Los Angeles County Register-Recorder last official
Statement of Registration to the Secretary of State, at the time the Notice of Intent to
Circulate an Initiative Petition was published, was 27,776 registered voters as of January
2, 2018. (Elections Code § 2187.)
Therefore 2,778 (10%) valid signatures are required to qualify the initiative petition. The
City Clerk/Election Official, subsequent to review of the findings by the Los Angeles
County Register-Recorder, has found the petition to be sufficient and is certifying the
results to the City Council per Elections Code § 9215.
Report on the Impacts of the Proposed Initiative Measure
On June 19, 2018, the City Council directed Staff, with the assistance of an expert
consultant, to prepare a report pursuant to California Elections Code § 9212 on the
impacts of the initiative if implemented. It is recommended that the City Council invite a
presentation of this report, ask such questions regarding the same as the City Council
deems appropriate, and then receive and file the report.
Take Action on the Proposed Initiative Measure
Following Council action to certify the sufficiency to the proposed initiative, the City
Council should then take one of the following optional actions: (1) adopt the Ordinance,
unaltered, putting into local law the regulations proposed in the initiative measure; or (2)
submit the ordinance, without alteration, to the voters at a special election on either
October 16 or 23, 2018 (pursuant to California Elections Code §§ 9215 and 1405); or (3)
submit the ordinance, without alteration, to the voters at the next regular election which
is to be held on November 5, 2019 .
A discussion of each of these options is provided hereinafter.
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•Option A - Adopt the Ordinance, as presented
Pursuant to California Elections Code § 9215(a) the City Council “may adopt the
ordinance, without alteration, at the regular meeting at which the certification of the
petition is presented, or within 10 days after it is presented.”
If the City Council chooses this option, the adoption of the Ordinance will take place at
tonight’s meeting (July 17, 2018). The Ordinance shall take effect at 12:01 AM on the
31st day after its passage.
Attachment C is an Ordinance adopting the proposed initiative measure in the event the
City Council selections Option A.
•Options B or C – Submit the Ordinance to the Voters, as presented
Pursuant to California Elections Code § 9215(b)1 the City Council may “submit the
Ordinance, without alteration, to the voters pursuant to [Elections Code] Section 1405.”
If a majority of the voters voting on the proposed Ordinance vote in its favor, the
Ordinance shall become a valid and binding Ordinance of the City. The ordinance shall
be considered as adopted upon the date that the vote is declared by the City Council, and
shall go into effect 10 days after that date.
1 Election Code § 9215(b) was recently amended (effective January 1, 2018) by
Assembly Bill 765 (“Local Initiative measures: submission to the voters”) so as to require
that the election for a municipal initiative measure that qualifies for the ballot be the next
municipal regular election, unless a city council calls a special election. If a city council
calls a special election, it must be within 88 to 103 days from the call of the special
election. According to the author of AB 765, “[a]llowing the proponents of an initiative to
force a local government to adopt the measure outright or schedule a special election
gives those proponents excessive leverage over local elected officials. Even when they
are faced with a measure that is broadly opposed by their constituents, local elected
officials nonetheless have to choose between adopting that measure, or spending limited
public funds to hold a special election. Proponents should not be able to use the threat
of a costly special election to coerce local elected officials into adopting their proposals.
AB 765 simply applies the same rules to local initiatives that currently apply to state
initiatives and local referenda—namely, that measures that qualify for the ballot will be
voted on at the next regularly scheduled election for which the measure can feasibly be
added to the ballot. For time sensitive matters, the local jurisdiction would have the ability
to call a special election to vote on the initiative prior to the next regularly scheduled
election.” (AB 765 Senate Floor Analyses, pp. 5-6, 6/22/17, @
https://leginfo.legislature.ca.gov/faces/billAnalysisClient.xhtml?bill_id=201720180AB765#.)
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Subsequently, no Ordinance that is either proposed by initiative petition and adopted by
the vote of the legislative body of the City without submission to the voters, or adopted by
the voters, shall be repealed or amended except by a vote of the people, unless provision
is otherwise made in the original Ordinance. (California Elections Code § 9217.)
Elections Code § 1405 2 provides two options for the election date when the ordinance
may be submitted to the voters.
The first option pursuant to Elections Code § 1405(a) provides “The election for a
municipal or district initiative that qualifies pursuant to Section 9215 or 9310 shall be held
at the jurisdiction's next regular election occurring not less than 88 days after the date
of the order of election.” (Emphasis added.) The City’s next regular election is scheduled
for November 5, 2019.
A regular election is defined as “an election, the specific time for the holding of which is
prescribed by law.” (Election Code Section 348.) The City of Rancho Palos Verdes
traditionally by law has held its regular local election every November of odd-numbered
years. Ordinance No. 591, adopted November 15, 2016, changed the City’s regular
election date to November of even-numbered years starting in November, 2020.
However, before 2020, the City’s next regular election is scheduled to be held on
November 5, 2019.3
The second option pursuant to Elections Code § 1405(b) provides that the City Council
“may call a special election for the purpose of submitting an initiative measure to the
voters before the date on which the initiative measure would appear on the ballot pursuant
to subdivision (a). If the governing body calls a special election pursuant to this
subdivision, the election shall be held not less than 88 days nor more than 103 days
after the order of the election.” The two dates available by law – given the 88 to 103
day window from the July 17, 2018, Council meeting date - to hold a special election for
the ordinance are October 16 or October 23, 2018.
Election Code § 1100 provides that elections must be held on Tuesdays (but not on state
holidays, or the day before or after a state holiday). This leaves the two dates within the
short window from October 13 – October 28 (respectively 88 to 103 days from July 17
Council meeting) of Tuesday, October 16, or Tuesday, October 23, 2018, upon which to
hold a special election for the ordinance.
2 Note that Election Code § 1405 was also recently amended (effective January 1,
2018) by AB 765.
3 While the State of California is holding a General Statewide Election on November
6, 2018, that election date is not a regular election date for the City of Rancho Palos
Verdes. The City at present has no regular scheduled local election that coincides with
the upcoming State of California General Statewide Election date of November 6, 2018.
Any local election held in the City on November 6, 2018, for consideration of a City matter
such as a City ballot measure would by law be a special local election.
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There are no scheduled elections for either of those October dates being conducted by
Los Angeles County. Thus, if the City held a special election on either of those dates in
October then the City would need to hold a “stand-alone” election which is not
consolidated with Los Angeles County.
• Option B - Submit the Ordinance to the voters at a Special Municipal Election
to be held on either Tuesday, October 16, 2018, or Tuesday, October 23, 2018.
In the event the City Council selects Option B, attachments D, E, F and G are resolutions
for consideration: (1) calling an election and ordering submission of the Initiative Measure;
(2) requesting services from the Board of Supervisors; (3) setting priorities for writing and
filing Argument(s) and directing the City Attorney to prepare an Impartial Analysis; and
(4) authorizing Rebuttal Arguments.
It is important to note that the County may not be able to render specified services to the
City relating to the conduct of a special municipal in October 2018, let alone an all-mail
election since October is the month immediately before the General Election. Therefore,
the City Clerk Staff, which is currently short-staffed due to a vacancy in the department,
will need to conduct all operations of the election on their own. Printing and mailing will
need to be outsourced to Martin & Chapman and limited election consultant support will
be available through Martin & Chapman as well.
Also, another note to consider is that the October special election will coincide with the
November general election mailings of ballots which is sure to cause voter confusion.
This option is estimated to cost the City $200,000.
ACTION ITEMS IF OPTION B SELECTED
If Option B is selected, the Council will need to decide whether to hold the special election
on Tuesday, October 16, 2018, or Tuesday, October 23, 2018.
Attachment F authorizes one or two councilmembers to, if desired, write a con argument
concerning the ballot measure. If three or more Councilmembers jointly write a ballot
argument then the Brown Act will require the collaboration to occur at a noticed public
meeting. As such, Staff suggests the Council appoint only one or two councilmembers
to, if desired, write an authorized con argument.
Rebuttal arguments are optional under state law and are allowed at the discretion of the
City Council. If the City Council does not desire to authorize rebuttal arguments then
Council should not approve the resolution attached as attachment G.
• Option C – Submit the Ordinance to the voters at the City’s next Regular
Election which is scheduled for November 5, 2019
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In the event the City Council selects Option C, attachment H is a resolution for
consideration which orders the submission of the ordinance to the voters at the
jurisdiction’s next regular election which is to be held on November 5, 2019.
If the City Council chooses this option, no further action (other than ordering the ordinance
be sent to the voters on November 5, 2019) is required at this time except to adopt the
Resolution accepting the Sufficiency of Initiative Petition. Adoption of further required
November 5, 2019, election Resolutions will follow at a later time according to the 2019
election calendar.
According to the County, this option would cost the City an additional $3,000 to $5,000 to
add the measure to the already scheduled regular election.
ALTERNATIVES:
None. State law provides that when a lawful initiative is certified to a city council as a
sufficient petition (and an Election Code § 9212 report has already been received as is
the present case) then a city council shall either adopt the ordinance or submit the
ordinance to the voters. (Elections Code §§ 9215, 9211, 9114, 1405.)
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Resolution No. 2018-XX
Certification of Sufficiency
Page 1 of 3
RESOLUTION NO. 2018-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, ACCEPTING THE CERTIFICATION OF SUFFICIENCY FOR
THE INITIATIVE PETITION ENTITLED “AN INITIATIVE MEASURE TO ADOPT FOR
EMPLOYEES OF LARGE HOTELS, GOLF COURSES, AND AMUSEMENT PARKS
NEW REGULATIONS, PROTECTIONS, AND PROCEDURES CONCERNING
WAGES, HOURS, WORK, TRANSIT, PANIC BUTTONS, RESPONSES TO
THREATENING CONDUCT, AND RECORDS”
WHEREAS, on February 27, 2018, the proponents of an initiative measure
entitled “An initiative measure to adopt for employees of large hotels, golf courses, and
amusement parks new regulations, protections, and procedures concerning wages,
hours, work, transit, panic buttons, responses to threatening conduct, and records”
submitted a Notice of Intent and written text of the measure and requested that a title
and summary be prepared by the City Attorney for the measure in order to circulate the
petition; and,
WHEREAS, on March 14, 2018, the City Attorney prepared and provided an
official ballot title and summary for the proposed initiative for use by the proponents for
publication and circulation of the petition; and,
WHEREAS, the Los Angeles County Register-Recorder last official Statement of
Registration to the Secretary of State pursuant to Section 2187 of the Election Code, at
the time the Notice of Intent was published, was 27,776 registered voters for the City of
Rancho Palos Verdes, California as of January 2, 2018; and,
WHEREAS, the initiative petition would require at least 2,778 (10%) valid
signatures to be sufficient to qualify for a regular election; and,
WHEREAS, the petition regarding the initiative was submitted to the City Clerk
on May 2, 2018, and said petition was officially filed on May 7, 2018 after a prima facie
review was conducted pursuant to the provisions of Election Code Section 9210(b), and
the petition was then submitted to the Los Angeles County Register-Recorder on May 8,
2018, for signature verification; and,
WHEREAS, the Los Angeles County Register-Recorder has prepared the “Letter
of Findings” attached as Exhibit “A”; and,
WHEREAS, the findings of the signature verification conducted by the Los
Angeles County Register-Recorder established that 4,335 signatures were filed, 3,825
signatures were verified, and 3,000 signatures were found sufficient/valid; and,
WHEREAS, subsequent to review of the findings, the City Clerk/Election Official
has determined that 2,778 (10%) valid signatures were submitted in the petition initiative
and thereby deems the petition to be sufficient to qualify for an election pursuant to
A-1
Resolution No. 2018-XX
Certification of Sufficiency
Page 2 of 3
Election Code Sections 9215 and 1405.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
Section 1: The City Council hereby accepts the certification of sufficiency for the
initiative petition.
PASSED, APPROVED, and ADOPTED this 17th day of July 2018.
/s/ Susan Brooks
Mayor
ATTEST:
/s/ Emily Colborn
City Clerk
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, Emily Colborn, City Clerk of The City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2018- was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof held on July 17, 2018.
__________________________
City Clerk
A-2
Resolution No. 2018-XX
Certification of Sufficiency
Page 3 of 3
EXHIBIT “A”
A-3
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
MEMORANDUM
Date: July 10, 2018
To: Douglas Willmore, City Manager
From: Larry Kosmont CRE®, President & CEO
Thomas Jirovsky, Sr. Consultant
Subject: Preliminary Analysis of Hospitality Working Conditions Initiative
______________________________________________________________________
Kosmont & Associates, Inc., doing business as Kosmont Companies (“Consultant” or
“Kosmont”) is pleased to present our preliminary analysis and findings to the City of
Rancho Palos Verdes (“Client”) as related to the Hospitality Working Conditions ballot
initiative.
Kosmont Companies, a certified Minority Business Enterprise (MBE) and certified Small
Business Enterprise (SBE), is a real estate, finance and economic development services
firm offering a full range of advisory services including: fiscal/economic impacts evaluation,
project finance, real estate and financial transaction structuring, development
negotiations, market analysis, special financing district analysis, retail strategies, digital
community outreach, and project implementation services for both the public and private
sectors.
Kosmont Companies, founded in 1986, is a nationally recognized leader in economic
development with decades of advisory services experience. Kosmont has assisted
hundreds of public agencies in their quest for improved local services and successful
public-private projects. What sets Kosmont apart is our understanding of project
economics as related to land use/policy considerations based on our longstanding public
and private sector experience. Kosmont staff includes financial and land use
professionals, real estate brokers and licensed public finance advisors, along with former
real estate developers and city and community development officials that collectively
provide an in-depth understanding of the California economy, local real estate markets,
land use and tax implications, and project financing options to effectively respond to our
Clients policy and transaction needs.
BACKGROUND
Certain individuals and organizations have circulated a ballot initiative measure, titled
Hospitality Working Conditions initiative (“Initiative”), to institute a City ordinance
(“Ordinance”) that would impact labor rates, hours, working conditions, and record keeping
for operators of hotels, golf courses or amusement parks with 50+ employees. This ballot
measure is similar to numerous initiatives pursued by various labor centric organizations,
some of which been adopted throughout the United States (see Appendix B: Review of
Comparable Ballot Initiatives, Ordinances, Legislation).
B-1
City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
Page 2 of 15
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
The Initiative, if approved by 50.1% of the voters, would add a new Ordinance as Section
5.40 Hospitality Working Conditions to the City of Rancho Palos Verdes Municipal Code.
Among other requirements, the Initiative/Ordinance would establish the following:
• Set a wage floor of $15 per hour beginning January 1, 2019, increasing by $1 per
hour until 2022 1.
• Limit the daily square footage hotel room cleaners may clean at larger hotels to
4,000 square feet per eight-hour workday. If more cleaning area is required, then
the employer must pay double the normal hourly rate for the entire shift.
• Impose certain other workplace employment conditions including the provision of
panic buttons 2 (Note: State Assembly Bill AB1761 is currently being considered
and, if adopted by the State Legislature and approved by the Governor, would
address this issue on a statewide basis).
• Require employers to provide monthly transit passes or rideshare cost credit for
all employees upon individual request.
• Impose daily record keeping requirements on employers for all room cleaning
employees (See Appendix A: Summary of Proposed Hospitality Workers Initiative
for detailed discussion of the provisions).
To understand the potential impacts of the Initiative on a preliminary basis, the City
requested that Kosmont provide an independent initial analysis of the impacts the
proposed Initiative/Ordinance would have on the Terranea Resort, Trump National Golf
Club, Los Verdes Golf Course, as well as the potential impacts on attracting future new
hospitality developments or expansions.
EXISTING CONDITIONS
In Rancho Palos Verdes, hotel, retail and golf course operations currently generate
approximately 30% of the City’s $30 million annual general fund revenue.
If the Initiative is approved, there are three existing operations within the City that could
be impacted:3
1With the 2016 passage of California SB 3, the State Labor Code Section 245.5 has been amended to schedule several
minimum wage increases for employees throughout the State. As of January 1, 2018, employers with 26 or more
employees are required to pay a minimum of $11.00 an hour. The rate is scheduled to increase to $15 an hour by January
1, 2022, meeting the 2019 wage floor in the proposed City ordinance.
2State law currently sets various safety and minimum wage requirements for employers. California State Labor Code
Section 6402 stipulates that employers within the State are currently prohibited from requiring “any employee to go or be in
any employment or place of employment which is not safe and healthful.” The Labor Code does not currently require
hospitality employers provide panic buttons to their employees. As of July 2018, several State Assembly and Senate bills
are proposed and drafted, which would require these and other protections for hospitality industry workers.
3Los Verdes is a public agency owned golf course that is operated by a private sector entity. The definitions of “Golf course”
and “Large hospitality employer” can be interpreted such that all or various provisions of the Initiative could apply to Los
Verdes. Accordingly, in abundance of caution, Kosmont included Los Verdes Golf Course in the analysis. America Best
Value Inn would be exempt from the Initiative which applies to hospitality venues with 50 or more employees.
B-2
City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
Page 3 of 15
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
1) Terranea Resort is by far the City’s largest taxpayer, generating over 20% of
general fund tax revenues. Terranea Resort contains 582 guest rooms,
restaurants and banquet facilities, a 9-hole golf course, and employs
approximately 1,200 hourly workers. Kosmont’s review of current payroll records
indicates that over 500 Terranea Resort employees earn less than $15 per hour
and approximately 1,000 earn less than $18 per hour. Less than 100 work in hotel
room cleaning operations.
2) Trump National Golf Club is an 18-hole golf course with restaurants and banquet
facilities. It employs approximately 150 hourly workers, none of whom provide
hotel room service. No information on company payroll was provided for research.
3) Los Verdes Golf Course is a privately managed, County-owned golf course with
a small restaurant facility. Based on Kosmont’s interview with the management
company, Los Verdes has approximately 70-80 hourly workers, 75% of whom earn
less than $15 per hour. None of the employees provide hotel room service.
METHODOLOGY
To understand the potential impacts of the Initiative to the City of Rancho Palos Verdes
as well as certain segments of the business community, Kosmont performed the following
tasks:
1. Reviewed the terms of the proposed Hospitality Working Conditions ballot
initiative.
2. Researched similar ballot initiatives in California and across the United States.
3. To the extent available, interviewed managers/representatives of the Terranea
Resort, Los Verdes Golf Course, and Trump National Golf Club to gain an
understanding of their current operating departments, staffing levels, parking
issues, and relevant employment practices or policies.
4. Researched average fixed and variable percentage costs for room cleaning, food
and beverage, grounds/maintenance, and other hospitality departments.
5. Examined local transit systems routes, timetables, and costs.
6. Analyzed the potential impact of the Initiative to certain other existing business
operations in the community.
7. Analyzed on a preliminary basis, the expected impact of the Initiatives provisions
on costs of operating departments in various hotel types, to determine the
Initiative’s potential impact on the financial feasibility of new hotel development.
B-3
City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
Page 4 of 15
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
SUMMARY OF IMPACTS
If passed, the Initiative will have a significant financial impact on large hospitality and golf
course operations located in Rancho Palos Verdes; specifically, the Terranea Resort,
Trump National Golf Club and the Los Verdes Golf Course. The Initiative is also expected
to have a detrimental long-term impact on the City of Rancho Palos Verdes and numerous
businesses in the community.
The following summarizes these projected impacts:
Terranea Resort
Kosmont analyzed detailed work classification and wage data for Terranea hourly
positions. Based on this analysis, Kosmont estimates the Initiative would be projected to
have the following financial impacts on the Terranea Resort:
1. Initiative would require Terranea to hire approximately 40 new housekeeping
employees at an estimated annual cost of $1.2 million in 2019; increasing to $1.5
million by 2022.
2. Initiative would require Terranea to provide transit passes or ridesharing credits
for up to 1,200 employees at an estimated annual cost of up to $1.4 million.
3. The 36% initial increase in minimum wage ($15 vs. $11) could result in an
estimated $2.9 million in annual labor cost increases in 2019 for the Resort’s
approximately 1,000 waiters, waitresses, bartenders, valet car parkers, and
bellhops (these workers also currently earn tip income which can be significant).
4. Additional wage increases to $18 per hour by 2022 could result in a $5.3 million
annual cost impact.
5. Initiative would require panic buttons for hundreds of foods service and other
employees who work in public spaces – no estimated cost available.
6. Initiative would require extensive recordkeeping on the daily activities of over 100
room cleaning personnel – no estimated cost available.
Based on the foregoing, Kosmont estimates the Initiative could generate higher labor
costs, benefits, and related administrative and compliance costs for Terranea Resort of
over $8 million per year by 2022. Based on current practices, several of these costs may
not be entirely necessary. For example, Kosmont’s research confirms that at Terranea:
• Hotel workers have panic button systems in place as a function of the iPads
utilized for tracking workers’ daily schedules.
• Hotel room cleaning staff currently receive hourly pay in excess of $15 per hour.
• During peak parking demand periods (primarily summer weekends) when
employees parking is acknowledged as being in short supply, Terranea provides
employees a free shuttle service from the Civic Center parking lot every 15-20
minutes.
B-4
City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
Page 5 of 15
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
Further, certain portions of the Initiative’s requirements are likely to have cost impacts with
limited employee benefits. For example, requiring payment of $100 per month to all
employees for transit pass or credit for ridesharing services (Uber/Lyft) is a significant
operating cost. Yet a majority of employees will likely maintain preference of personal
vehicles, particularly those working late night shifts as available transit systems do not
operate at convenient times and generate safety concerns for employees waiting for bus
service after dark. While the flexibility of ride sharing services may improve the efficacy
of this proposed benefit, it remains costly for employers at an estimated $1.4 million per
year for Terranea alone and underscores the merit of a more focused approach (see
Appendix C for discussion of Transit Service).
Trump National Golf Club
Due to a lack of requested information, Kosmont is not able to quantify the Intiative’s
financial impact to Trump National Golf beyond an estimated $200,000 in annual costs of
transit/rideshare credits for their 150 to 170 non-hotel employees. Discussions with Trump
National Golf managers indicated that there are no employee parking shortages.
Los Verdes Golf Course
Kosmont estimates an increased cost of $300,000 to $500,000 per year for higher wages,
benefits, and transit subsidies for the 70-80 maintenance, grounds keeping, and food
service employees at the facility.
OTHER POTENTIAL PRIVATE SECTOR BUSINESS IMPACTS
• Although the minimum wage levels apply solely to the three affected businesses,
there will likely be noteworthy indirect operational impacts on employee retention
for restaurants and other commercial businesses in the City, as key and/or
preferred employees will likely gravitate to employers such as Terranea and Trump
National Golf.
• Golden Cove Center and other businesses in the community may be forced to
increase salaries to retain certain employees. To address the higher costs,
business owners would likely also consider cost saving measures such as a
reduction in operating hours and/or price increases.
• To cope with the Initiative’s imposed ~36% increase in wage rates to tipped
staff, restaurant/ bar prices would likely need to increase.
• Terranea may need to limit hours of some of its restaurant operations due to the
increased costs, which could result in less sales tax dollars (or slower growth in
future sales).
• Due to overall operating cost impacts of the Initiative, Terranea may seek to reduce
summer jobs (i.e.; pool and servers) which are typically available to local residents.
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City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
Page 6 of 15
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
POTENTIAL PUBLIC SECTOR IMPACTS
City of Rancho Palos Verdes
Based on the experience of other cities with similar ordinances, such as Chicago and
Seattle, the initiative, if passed, is likely to result in increased City staffing costs, legal
services, and management time to adopt rules and regulations required in implementing
the Ordinance. This would include, but would not be limited to: announcing and informing
employees of their rights by posting/providing notices, the posting of bulletins and posters
of Ordinance regulations, and the subsequent handling/responses to violation and
appeals processes.
It is difficult to quantify any near term financial impact to the City General Fund based on
the operating costs imposed by the Initiative. It is more likely that hospitality owners will
not invest (or invest less) in expanding operations, and potentially may even be forced to
reduce operations. Ultimately, this would result in potentially reduced levels of growth in
future TOT and/or sales tax revenue to the City.
More significant is the potential negative impact on future hospitality business
development that the private sector might consider submitting for city approval; due
primarily to the likelihood of the Initiative making construction of new hospitality business
financially infeasible and/or significantly riskier (see discussion below).
POTENTIAL IMPACT ON NEW HOTEL DEVELOPMENT
Based on Kosmont’s experience with financial feasibility analyses for hotel development
projects throughout California, to the extent that the community would support a new
hospitality project or expansion, the Initiative will likely have a significant impact on the
feasibility of new hotel developments in Rancho Palos Verdes for years to come.
Utilizing 2017 nationwide hotel operating data, as published by CBRE Hotel Advisory
Group, Kosmont developed an illustrative pro forma for hypothetical development and
operation of a 75-room economy hotel, and a 250-rooom business hotel, with and without
the estimated cost impact from the Initiative. Each demonstrate the impact the Ordinance
would have on hotel financial operating costs and resulting return on investment. The
following summarize the results of this pro forma analysis:
• A typical 75-room economy hotel would likely cost $12 million to build. It would
need to earn a 9% return on investment, and could generate $256,000 in annual
TOT revenue.
• Based on the labor and related operating requirements of the Initiative/Ordinance,
Kosmont estimates that such a hotel would see annual operating costs increase
by approximately $325,000, or 25%, as compared to current operating estimates
without the Ordinance.
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City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
Page 7 of 15
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
• The estimated impact of a $325,000 reduction in net operating income would result
in a $3.3 million financial feasibility gap, which would require an annual subsidy
greater than the $256,000 in annual TOT revenue expected. This indicates that
development of new economy hotels in RPV would be infeasible.
A summary of the analysis of financial returns from an illustrative 250-room business hotel
is as follows:
• A typical 250-room business hotel would likely cost $83 million to build. It would be
expected to earn a 9.5% return on investment and could generate an estimated
$1,600,000 in annual TOT revenue.
• Based on the Initiative/Ordinance labor and related operating requirements,
Kosmont estimates that such a hotel could see annual operating costs increase by
almost $2.1 million, or 20%, as compared to operating estimates without the
Ordinance.
• The estimated impact of a $2,100,000 reduction in net operating income would
result in approximately a $22 million financial feasibility gap, which would require
an annual subsidy greater than the $1,600,000 in annual TOT revenue expected;
indicating that development of new business hotels in RPV would be infeasible.
CONCLUSION
Private Sector
This Initiative if enacted in its entirety, would likely represent a significant financial burden
on the City’s major taxpaying hospitality and golf operations/entities. It is important to note
that most of financial benefits of the Initiative goes to non-hotel room service employees,
primarily the 500 to 700 waiters, waitresses, bartenders, valets, who receive significant tip
income in addition to the State minimum wage.
By requiring Terranea, Trump National Golf and Los Verdes Golf Course to pay
substantially higher wages for food servers and other minimum wage “tip earning” jobs, it
will likely increase operating costs for businesses across the City, yielding greater
likelihood of future increased prices to customers and/or reduced service.
Our analysis has also identified that Terranea has already addressed panic button related
issues/solutions with hotel cleaning staff.
Public Sector
The State Legislature is currently considering legislation to address hotel worker safety
issues and various other labor requirements statewide. Relying on statutory direction from
the State on these matters would likely reduce local administrative and compliance cost.
Kosmont’s financial feasibility analysis indicates that the Initiative could make new hotel
development/expansion infeasible, potentially impacting future tax revenues.
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City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
Page 8 of 15
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
APPENDIX A
SUMMARY OF PROPOSED HOSPITALITY WORKERS INITIATIVE
On February 27, 2018, the Rancho Palos Verdes City Clerk’s Office received a notice of
intent to circulate an initiative to “improve worker safety and improve working conditions
at large hospitality employers in the City.” The proposed Hospitality Worker Initiative (the
Initiative) would affect any large hospitality employers (50+ employees) within the City;
including its privately owned and operated hotels, golf courses, and amusement parks.
As proposed, the Initiative would primarily affect three major employers within the City.
The Terranea Resort, Trump National Golf Club, and Los Verdes Golf Course.4 Other
hospitality employers queried did not meet the threshold of 50+ employees.
The impetus behind the Initiative was cited by its proponents from the following issues:
• Employee’s vulnerability to crimes and threatening behavior, including sexual
assault
• The lack of pay compensation that is sufficient for workers to meet their basic
needs
• Overly burdensome room cleaning quotas and unexpected overtime
• A shortage of available parking at hospitality employer locations.
To resolve these issues, the Initiative proposes the following measures.
Protection from Threatening Behavior
Employers would be required to provide their workers with panic buttons which they may
use to report threatening conduct or emergencies. These buttons would be provided to
employees working as room cleaners, food servers, or any other employee upon request.
Should their use be required, the employee would be able to remove themselves from the
situation without discipline for ceasing work. Additionally, no employee would be
disciplined for using the panic button absent clear and convincing evidence of a false claim
of emergency.
Should violent or threatening behavior, including but not limited to indecent exposure,
solicitation, assault, or coercive sexual conduct be brought to the attention of the
employer, the employer would be required to provide the affected employee paid time to
contact and work with police and consult with a counselor. Additionally, the employer
would be required to cooperate with any police investigations of reported incidents.
Large Hospitality Employer Minimum Wage
By January 1, 2019, large hospitality employers would be required to pay an hourly
minimum wage of $15 to all hospitality employees. Minimum wage would rise an additional
dollar per hour on each January 1 thereafter until January 1, 2022; bringing the minimum
wage to $18 an hour.
4 There remains some question as to whether the initiative would affect the Los Verdes Golf Course as the site is part of
the Los Angeles County System managed by a private entity, America Golfs.
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City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
Page 9 of 15
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
On January 1, 2023, and annually thereafter, the minimum wage would then continue to
increase to reflect the cost of living by applying the greater of (1) a 2% percentage increase
or (2) the percentage increase of the Consumer Price Index for Urban Wage Earners and
Clerical Workers for the Los Angeles Metro Area. If passed the City would be responsible
for announcing and informing employees of their rights via a bulletin and posters.
Humane Workload
Under the Initiative, room cleaners would not be required to clean more than 4,000 square
feet of floorspace in any one 8-hour workday unless the employer pays the employee
twice their regular rate during the entirety of that workday. Employees working less than
eight hours a day would have this maximum floor space reduced on a prorated basis. For
instance, if an employee was assigned to clean seven or more checkout and/or additional-
bed rooms during a workday, the maximum floorspace of 4,000 would be reduced by 500
square feet for each such room over six.
Hospitality workers would also not be required to work more than 10 hours in a single
workday without their consent. Consent would be expressed in a written document signed
by the employee, or electronically via an account or number particular to the employee.
Consent would not be valid if the employer advised the employee less than 30 days
preceding the consent. Exceptions could be made due to any emergency which caused
“an immediate threat to public safety or of substantial risk of property loss or destruction”.
Support for Alternative Transportation
Hospitality employers would also be required to provide one of the following transit
alternatives to their employees: 1) a monthly transit pass for an individually requested
public transit system, or, 2) a credit towards a vanpool or ridesharing service at least equal
in value to the purchase price of the monthly transit pass. The pass would be required to
be at minimum equal to the cost of a non-discounted adult LA Metro Pass. Alternatively,
the employer may offer the employee transportation from the workers residence to and
from the worksite at no cost to the employee.
Preservation of Records
For three years, each large hospitality employer would be required to maintain a record of
each employee’s hours worked, pay rate, and proof of offer for alternative transportation.
They will also be required to maintain written consents received from hospitality
employees to work more than ten hours during a shift, as well as a record of all the rooms
and square footage an employee has cleaned on each workday. this information will be
made available to the employee upon request failure to do which will result in a penalty of
$100 to $1000 per day.
Waiver and Enforcement
Provisions of the Initiative would not be eligible to be waived by an individual or hospitality
employer unless in a collective bargaining agreement. Workers would be entitled to bring
action to the Superior Court any claims of violation of the proposed Initiative.
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City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
Page 10 of 15
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
APPENDIX B
REVIEW OF COMPARABLE BALLOT INITIATIVES, ORDINANCES, LEGISLATION
Kosmont researched similar ballot initiatives across the country to identify potential
impacts and issues that passage of the proposed Initiative might have upon the City of
Ranchos Palos Verdes. We were able to identify seven similar enacted or proposed City
initiatives as well as current State legislation. An overview of these initiatives, their history,
requirements, and current status are summarized below:
Exhibit 1 – Comparison of Current/Proposed Hotel Worker Ordinances
Proposed Initiatives within the State of California
City of Anaheim – Initiative 18750
On June 19th, 2018, the Anaheim City Council voted to place Initiative 18750 on the City’s
November ballot. The proposed measure would raise the minimum wage “no less than
$15 per hour” for those employers which benefit from City subsidies. The minimum wage
would rise by one dollar per hour at the outset of each calendar year beginning January
1, 2019 through 2022. On January 1, 2023 and annually thereafter the wage would again
rise based on the greater of (1) two percent (2%) or (2) the percentage increase of the
CPI-W for the Los Angeles Metro areas. Additionally, service charges under the ordinance
are not to be retained by the employer but paid in their entirety to the employees
performing services for the customers from whom the service charges are collected.
Minimum
Wage
Panic
Buttons
Workload
Limitations
Transport
Alternative
Time Off/
Sick Leave
Medical
Care
Worker
Retention
Approved
Anaheim
California
Chicago
Los Angeles
Long Beach
Rancho Palos
Verdes
Santa Monica
Seattle
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City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
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KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
Proposed Legislation within the State of California
State of California – AB 1761
California Assembly Bill 1761 was introduced on January 4th, 2018 by Assemblyman Al
Murasaki. The Bill would add a section to the State Labor Code requiring, among other
things, that a hotel employer provide its employees with a panic button in order to summon
immediate assistance.
If passed, AB 1761 would also require a hotel employer to provide paid time off to an
employee who is the victim of assault; provide reasonable accommodations to the
employee who has been subjected to an act of violence, sexual assault, or sexual
harassment by a guest; post a specified notice in each guestroom regarding provisions;
contact law enforcement to report an act constituting a crime and cooperate in the
investigation; and prohibit discrimination or retaliation against an employee who
reasonably used any measure of the provision.
The Assembly Bill is one of several proposed legislation that have been introduced in 2018
in the wake of high profile cases of sexual misconduct and harassment. For example, AB
1870, AB 3080, SB 820, SB 1038, and SB1300 have been introduced to change a
perceived culture of workplace harassment and update a host of general employment laws
which can provide protection and/or processes for redress of violations.
If passed, these bills would supersede current panic button provisions required under the
proposed Initiative in Rancho Palos Verdes.
Approved Ordinances in California
City of Los Angeles – Ordinance 183241
In 2007, Los Angeles City Council passed a living wage ordinance for workers employed
in hotels near Los Angeles International Airport, followed by an additional ordinance in
2009 for all airport employees. Initially these requirements stipulated a minimum wage of
$7.25 an hour for employees with health benefits, and $8.50 per hour for those without.
These rates were raised in 2009 to $10.30 and $11.55 respectively.
In 2014, the City of Los Angeles passed Ordinance No. 183241, expanding wage
requirements for hotel workers Citywide. In accordance with Section 186.02 of the
Ordinance, hotel workers were required to be paid a minimum of $15.37 per hour not
including gratuities, service charge distributions, or bonuses. Starting July 1, 2017, this
rate was thereafter adjustable pursuant to Section 10.37.2(a) of the Administrative Code
which requires rates to be “adjusted annually to correspond with adjustments, if any, to
retirement benefits paid to members of the Los Angeles City Employees Retirement
System (LACERS)”. Additional stipulations in the ordinance demanded: a minimum
required amount of compensated time off; a minimum required amount of uncompensated
time off; and the prevention of retaining service charges by the employer.
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City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
Page 12 of 15
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
City of Long Beach – Measure N
In 2013, the Measure N Initiative Ordinance 5.48.020 was passed by the citizens of Long
Beach requiring that each hotel employer pay hotel workers a minimum wage of $13.00
per hour. Annual rate increases, included within the language of the ordinance, have
subsequently raised this minimum wage and as of July 1, 2017 it had risen to $14.35 an
hour.
In addition to the minimum wage and subsequent raises it included, the ordinance required
employers to: pay all service charges collected by the employer to employees performing
said services; pay hotel workers a minimum of five compensated sick days per calendar
year; and set additional sick time accrual requirements.
In 2017, an additional recommendation was put before City Council to require the
provision of panic buttons to hotel employees within the City. Additional stipulations set
limited workloads similar to the language used in the Rancho Palos Verdes initiative.
Council ultimately decided not to direct the City Attorney to draft legislation on workloads,
and instead passed a recommendation reaffirming the City’s commitment to the protection
of hospitality workers.
City of Santa Monica – Ordinance 2509
in January 2016, the City Council of Santa Monica passed Ordinance 2509, setting new
minimum wages for individuals employed by businesses within the City. The wages for
hotel workers within the City were raised to an initial rate of $13.25 in 2016, before aligning
to the City of Los Angeles’ minimum hotel wage of $15.37 in 2017 onwards. Hotel
employers were also required to provide workers with at least 40 hours of sick leave as of
January 1, 2017, and at least 72 hours of accrued paid sick leave as of January 1, 2018.
In addition, employees upon passage would accrue on hour of paid sick leave for every
30 hours worked.
Additional stipulations of the Ordinance required workers to be informed of their right to
the Earned Income Credit, and the distribution of all service charges in their entirety to the
employees who performed said services. This included service charges collected for hotel
banquets and catered meetings, room service, and porterage service. Employers were
also required to “disclose in writing to each employee [their] plan of distribution”.
The City has partnered with the Los Angeles County Department of Consumer and
Business Affairs to enforce its minimum wage law. Workers are invited to file wage claims
with the County and have access to the County’s dedicated wage enforcement unit. The
City has also partnered with three community groups (KIWA, Lee Andrews Group, and
Restaurant Opportunities Center LA) for dedicated outreach and training to Santa
Monica’s businesses and workers.
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City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
Page 13 of 15
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
Approved Ordinances outside of California (representative examples)
City of Seattle, Washington – Measure 124
In November 2016, Seattle voters passed Initiative Measure 124 which established a
number of minimum health and safety standards for hotel employees in the City of Seattle.
The initiative required all hotel employers to provide panic buttons to employees “assigned
to work in a guest room without other employees present”.
The initiative also provided employees with a number of protections from violent or
harassing hotel guests, including a ban of accused guests for 3 to 5 years. Additional
provisions of the ordinance require increased safety provisions for hotel employees,
improved access to affordable family medical care, and mandated worker retention for up
to 90 days following a change in hotel management. The placement of signs within the
hotel detailing the ordinance is also required.
Despite its passage almost two years ago, the Ordinance has seen limited implementation
and administration by the City. On January 2018, the Office of Labor Standards held
several stakeholder meetings to identify provisions in the ordinance that required
clarification to create administrative rules. As of July 1, 2018, the “administrative rules that
clarify key pieces of the ordinance took effect”. This has limited some of the financial and
administrative impacts felt by the City and has caused implementation by Seattle hotels
to move slowly.
In addition to the stipulations set by Measure 124, the City has adopted a separate
minimum wage ordinance, which gradually increased the minimum wage within City
boundaries to $15 an hour. This rate continues to be phased-in conditional upon
employer’s size and differentiation for employers who receive tips or health benefits.
City of Chicago – Hotel Workers Sexual Harassment Ordinance
In October 2017, the Chicago City Council passed the “Hotel Workers Sexual Harassment
Ordinance” to provide new protections for hotel workers from sexual harassment. The
ordinance requires hotels to comply with three major duties: 1) the provision of panic
buttons or similar notification devices to employees who have to enter guest rooms or
restrooms alone, 2) develop, maintain, and comply with anti-sexual harassment policies,
and 3) provide all employees with a copy of the policy and post it in conspicuous places
within the hotel.
Prior to taking full force and effect the Illinois state hotel association request an extension
of the compliance deadline, citing concerns that implementation of the ordinances
requirements was proving more costly and complicated than anticipated. A request which
was denied by City.
The Ordinance took effect as of July 1, 2018 and will be enforced by the City’s Department
of Business Affairs and Consumer Protection.
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City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
Page 14 of 15
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
APPENDIX C
SUMMARY OF CURRENT TRANSIT AVAILABITY IN RANCHOS PALOS VERDES
Initiative proponents have cited a shortage of available parking as the reasoning behind
inclusion of certain transportation and parking provisions in the Initiative. To determine
whether or not hospitality workers would be likely to utilize proposed passes for transit
alternatives, Kosmont conducted a preliminary review of the availability and frequency of
current public transit systems within the Rancho Palos Verdes peninsula. A summary of
this research follows.
Exhibit 2 – Public Transit Alternatives
Source: ESRI 2018, LA County Metro Maps and Timetables, PVPTA Routes and Timetables
Kosmont identified the closest public transit sites available to each of the three hospitality
employers that would be affected by the proposed Initiative. Two public transit systems
provide the closest service to these sites: the LA Metro 344 Bus and the Palos Verdes
Peninsula Transit Authority (PVPTA) Gold Line. Affected employers are within a half mile
of public transit alternatives, which is estimated to be 15 minutes of walking distance.
Service times varied significantly amongst the selected sites. LA Metro Bus 344 has a
posted service frequency time of 15 minutes during peak hours and 50 minutes during
non-peak. On Sunday, service is hourly. Weekday service starts at 5:10 am and ends at
B-14
City of Rancho Palos Verdes
Analysis of Hotel Initiative
July 10, 2018
Page 15 of 15
KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.297.1070 I www.kosmont.com
9:23 pm, while weekend service starts at 5:45 am and ends at 9:45 pm, making the system
unavailable to most evening shift employees. The PVPTA Gold Line provided a severely
limited schedule, running 2-3 times daily during the summer, and 5 times daily during the
rest of the year.
While geographically convenient, Kosmont’s initial review of current public transit
availability to the affected sites raises concerns over expected utilization as low service
frequency to each of the closest service stops could serve as a deterrent for employees
to utilize public transit alternatives.
B-15
Ordinance No.
Adopting Hospitality Initiative Measure
Page 1 of 4
ORDINANCE NO. 2018-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, ADOPTING AN INITIATIVE MEASURE TO ADOPT FOR
EMPLOYEES OF LARGE HOTELS, GOLF COURSES, AND AMUSEMENT PARKS
NEW REGULATIONS, PROTECTIONS, AND PROCEDURES CONCERNING
WAGES, HOURS, WORK, TRANSIT, PANIC BUTTONS, RESPONSES TO
THREATENING CONDUCT, AND RECORDS THROUGH ADDING A NEW CHAPTER
5.40 (“HOSPITALITY WORKING CONDITIONS”) TO THE MUNICIPAL CODE OF
THE CITY OF RANCHO PALOS VERDES.
WHEREAS, pursuant to Section 9215 of the California Elections Code, the City
Council of the City of Rancho Palos Verdes has received a duly signed and certified
initiative petition containing the signatures of not less than ten percent (10%) of the
registered voters of the City according to the last report of registration by the county
elections official to the Secretary of State pursuant to Section 2187 of the California
Elections Code, which initiative petition proposes a City Ordinance that would add
Chapter 5.40, Hospitality Working Conditions, to the City of Rancho Palos Verdes
Municipal Code, and applies to “large hospitality employers,” being owners or operators
of a hotel (50+ rooms), golf course, or amusement park, with 50+ hospitality employees
(“Employers”); and
WHEREAS, the City Council is required pursuant to Section 9215 of the
California Elections Code to either adopt the initiative measure, without amendment, or
submit the initiative measure, without amendment, to a vote of the electorate of the City
pursuant to Section 1405 of the California Elections Code; and
WHEREAS, the City Council desires to adopt the initiative measure in
accordance with the provisions and requirements of Section 9215 of the California
Elections Code.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The forgoing recitals are true and correct and incorporated herein
by this reference.
SECTION 2. That pursuant to Section 9215 of the California Elections Code, the
initiative measure attached hereto, marked Exhibit A hereof, and incorporated herein by
this reference as if fully set forth, is hereby adopted in its entirety.
SECTION 3. That the provisions of this ordinance hereby adopted shall not be
repealed or amended except by a vote of the electorate of the City of Rancho Palos
Verdes in accordance with the requirements of Section 9217 of the California Elections
Code.
C-1
Ordinance No.
Adopting Hospitality Initiative Measure
Page 2 of 4
SECTION 4. That the City Clerk shall certify to the passage and adoption of this
ordinance.
SECTION 5. Certification and Posting. The City Clerk shall cause this Ordinance
to be posted in three (3) public places in the City within fifteen (15) days after its
passage, in accordance with the provisions of Section 36933 of the Government Code.
The City Clerk shall further certify to the adoption and posting of this Ordinance, and
shall cause this Ordinance and its certification, together with proof of posting, to be
entered in the Book of Ordinances of the Council of this City.
SECTION 6. Effective Date. This Ordinance shall go into effect at 12:01 AM on
the 31st day after its passage.
PASSED, APPROVED, and ADOPTED this 17th day of July 2018.
/s/ Susan Brooks
Mayor
ATTEST:
/s/ Emily Colborn
City Clerk
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, Emily Colborn, City Clerk of The City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2018- was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof held on July 17, 2018.
__________________________
City Clerk
C-2
Ordinance No.
Adopting Hospitality Initiative Measure
Page 3 of 4
I, Emily Colborn, City Clerk of the City of Rancho Palos Verdes, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Ordinance No. passed first reading on July 17, 2018, was duly and regularly
adopted by the City Council of said City at a regular meeting thereof held on August 7,
2018, and that the same was passed and adopted by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
C-3
Ordinance No.
Adopting Hospitality Initiative Measure
Page 4 of 4
EXHIBIT “A”
C-4
I:: (., I:: v
.A TY OF RANCHO PALOS VERDE
The People of the Rancho Palos Verdes do hereby ordain:
Section 1. A new Chapter 5.40, entitled "Hospitality Working Conditions,"i
of Rancho Palos Verdes Municipal Code, as follows:
5.40.010 -Definitions.
FEB 2 'l 2018
"Additional-bed rooms" means a room with additional beds such as cots or rollaways.
"Amusement park" means any grounds or enclosure wherein concessions and adult rides
of a permanent nature and having a fixed location are situated.
"Checkout" means a room where the guests are ending their stay.
"Emergency" means an immediate threat to public safety or of substantial risk of property loss or
destruction.
"Food server" means a person whose principal duties are to serve or deliver food or beverages to
guests, regardless of who employs the person.
"Golf course" means any large, landscaped area having a series of holes spaced considerably
apart designed for the playing of the game of golf. For the purpose of this Chapter, a golf course
does not include a driving range, a miniature golf course, or a property whose principal owner or
operator is a government entity.
"Guest" means a patron of a hotel, golf course, or amusement park, as defined herein, including
without limitation, registered guests and visitors invited by registered guests.
"Guest room" means a room made available by a hotel for transient occupancy.
"Hotel" means a facility that is designated or used for lodging and other related services
for the public, and containing 50 or more guest rooms, or suites of rooms (adjoining
rooms do not constitute a suite of rooms). "Hotel" also includes any contracted, leased
or sublet premises connected to or oper ated in conjunction with the facility's purpose , or
providing services at the facility.
"Large hospitality employer'' means a person who owns, controls, and/or operates a
hotel, golf cour~e, or amusement park in the City of Rancho Palos Verdes, and employs
or exercises control over the wages, hours, or working conditions of 50 or more
employees at such hotel, golf course, or amusement park, directly or through an agent
or any other person, including through the services of a temporary service or staffing
agency or similar entity. The term "large hospitality employer" also includes any
contracted, leased or sublet prem ises connected to or operated in conjunction with such
hotel 's, golf course's, o r amusement park's purpose, or a person, other than a
hospitality employee, who provides services at such hotel , golf course, or amusement
park in conjunction with the hotel's, golf course's, or amusement park's purpose .
"Hospitality employee" means any individual who (1) is employed b y a large hospitality
employer; and (2) was hired to or did work an average 5 hours/week for 4 weeks at one or more
hotels, golf courses, or amusement parks.
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C-5
"Panic button" means an emergency electronic contact device carried by a hospitality employee
which allows him or her in the event of an ongoing crime, threat, or other emergency to alert a
security guard responsible for providing immediate on-scene assistance.
"Person" means an individual, corporation, partnership, limited partnership, limited liability
partnership, limited liability company, business trust, estate, trust, association, joint venture,
agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign .
"Ridesharing service" means a dynamic, on -demand, fee-based service that supports real-time
ridesharing or carpooling through short-term arrangements enabled by GPS , wireless service, or
other technologies.
"Room cleaner" means a person whose principal duties are to clean and put in order residential
guest rooms in a hotel, regardless of who employs the person.
"Transit Pass" means any pass, token, fare card, voucher or similar item entitling a person to
transportation on public transit within the meaning of 26 U.S.C. § 132(f)(5)(A), as the federal
law may be amended from time to time, including but not limited to , travel by bus, light rail or
train.
"Vanpool" means a "commuter highway vehicle" within the meaning of 26 U .S.C. §
132(f)(5)(B), as the federal law may be amended from time to time, which currently means any
highway vehicle:
(A) the seating capacity of which is at least 6 adults (not including the driver), and
(B) at least 80% of the mileage use o f which can reasonably be expected to be (i) for the
purpose of transporting employees in connection with travel between their residences
and their place of employment; and (ii) on trips during which the number of
employees transported for such p urposes is at least 1/2 of the seating capacity of such
vehicle (not including the driver).
"Workday" means a 24-hour period beginning at 12:00 a.m. and ending at 11 :59 p .m .
5.40.020 -Measures to protect hospitality employees from threatening behavior.
A. Purpose . Hospitality employees who work by themselves in guest rooms, restrooms, or
in isolated locations are vulnerable to crimes and other threatening behavior, including sexual
assault. This Section enables hospitality employees to protect their safety by, among other
measures, requiring that large hospitality employers provide workers with panic buttons which
they may use to report threatening conduct or other emergencies. Many instances of sexual
assault go unreported to the police. This Section also includes provisions that support
employees' ability to report criminal and threatening behavior to the proper authorities.
B . A large hospitality employer shall provide to each hospitality employee who works as a
room cleaner, food server, or any other hosp itality employee who so requests, at no cost to the
hospitality employee, a panic button.
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(1) If a hospitality employee encounters a situation necessitating his or her use of the
panic button as described above, the hospitality employee may cease working and remove
him/herself from the situation to await the arrival of the security guard responsible for providing
immediate assistance . No hospitality employee may be disciplined for ceasing work under the se
circumstances .
(2) No hospitality employee may be discip lined for use of a panic button absent clear
and convincing evidence the hospitality emp loyee knowingly and intentionally made a false
claim of emergency.
C. A hospitality employee who brings. to the attention of a large hospitality employer the
occurrence of violence or threatening behavior, including but not limited to indecent exposure,
solicitation, assault, or coercive sexual conduct by a guest or other person shall be afforded the
following rights.
(1) The large hospitality employer shall immediately allow the affected hospitality
employee sufficient paid time to contact the police and provide a police statement and to consult
with a counselor or advisor of the hospitality employee's choosing; the large hospitality
employer will permit, but may never require, the complaining hospitality employee to report an
incident involving alleged criminal conduct to the law enforcement agency with jurisdiction ; and
(2) The large hospitality employer shall cooperate with any investigation into the
incident undertaken by the law enforcement agency and /or any attorney for the complaining
hospitality employee .
D. Each large hospitality employer sh all p lace a sign on the back of the entrance door of
each public restroom and, where app licable, on the back of each entrance door of a guest room ,
written in a font size of no less than 18 points, that includes the heading "The Law Protects
Hospitality Employees From Threatening Behavior," a citation to this Chapter of the Rancho
Palos Verdes Municipal Code, and notice of the fact that the large hospitality employer is
providing panic buttons to employees .
5.40.030-Large H ospitality E mployer M inimum W age
A. On and after January 1, 2019, large hospitality employers shall pay a wage of no less than
Fifteen Dollars per hour, which shall increase by One Dollar per hour on each January 1
thereafter through January 1, 2022 .
B . On January 1, 2023 , and annually thereafter, the minimum wage will increase annually to
reflect increases in the cost of living . The cost ofliving increase shall be the greater of (1) two
percent (2 %) or (2) the percentage increase as of September 30, 2022 , and as of September 30 in
any subsequent year for further annual adjustments, over the level as of September 30 of the
preceding year of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-
W) for the Los Angeles Metropolitan Area (Los Ange les-Riverside-Orange County, CA), which
is published by the Bureau of Labor Statistics, U .S . Department of Labor or the successor index
or federal agency. The C ity Manager shall publish a bulletin by November 1 of each year
announcing the adjusted rates, which shall take effect the following January 1. Such bulletin will
be made available to all Employers and to any other person who has filed with the City Manager
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a request to receive such notice, but lack of notice shall not excuse noncompliance with this
Section . The City Manager shall prescribe a poster advising Employees of their rights under this
article and distribute it to all Employers. An Employer shall post the notice in a prominent place
where it will be seen by Emp loyees . An Employer shall provide written notification of the rate
adjustments to each of its Employees and make the necessary payroll adjustments by January I
following the publication of the bulletin.
5.40.04 0 - H uman e w orkload.
A. Purpose. Hospitality employees who clean guest rooms are frequently assigned overly
burdensome room cleaning quotas and unexpected overtime, which undermines the public
interest in ensuring that room cleaners can perfonn their work in a manner that adequately
protects public health and interferes with their ability to meet family and personal obligations .
This provision assures that workers receive fair compensation when their workload assignments
exceed proscribed limits and prohibits hospitality employers from assigning employees overtime
work when their shifts exceed 10 hours in a day, except in emergency situations , without
obtaining workers' informed consent.
B. A large hospitality employer that owns, controls, and/or operates a hotel shall not require
a room cleaner to clean rooms amounting to more than 4 ,000 square feet of floorspace, or more
than the maximum floor space otherwise specified in this Section, in any one, eight-hour
workday unless the large hospitality employer pays the room cleaner twice his or her regular rate
of pay for all hours worked by the room cleaner during the workday . If a room cleaner works
fewer than eight hours in a workday, the maximum floor space shall be reduced on a prorated
basis . When a room cleaner during a workday is assigned to clean any combination of seven or
more checkout rooms or additional-bed rooms, the maximum floorspace to be cleaned shall be
reduced by 500 square feet for each such checkout or additional-bed room over six . The
limitations contained herein apply to any combination of spaces, including guest rooms and
suites , meeting rooms or hospitality rooms , and apply regardless of the furniture , equipment or
amenities in any rooms .
C. A large hospitality employer shall not suffer or permit a hospitality employee to work
more than 10 hours in any workday unless t he hospitality employee consents. Consents must be
written and signed by the hospitality employee or communicated electronically through an
account or number particular to the hospitality employee . No consent is valid unless the large
hospitality employer has advised the hospitality employee in writing not more than 30 days
preceding the consent that the hospitality employee may decline to work more than 10 hours in
any workday and that the hospitality emp loyer will not subject the hospitality employee to any
adverse action for declining. An assignment in excess of 10 hours in a workday due to an
emergency shall not violate this Section.
5.4 0 .0 5 0 - Sup p ort for A lte rnative Tran sportati o n
As to each hospitality employee, a large hospitality employer shall take one of the following
actions:
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(1) Offer to the hospitality employee each month a transit pass for the public transit
system requested by the hospitality employee or credit toward vanpool or ridesharing service
charges at least equal in value to the purchase price of the monthly transit pass, which shall at a
minimum be equal to the cost of a non-discounted adult Los Angeles Metro Pass enabling u s e at
no additional charge of all Metro services and which may be used by the hospitality employee
for the purpose of commuting to and from work for the large hospitality employer.
(2) Offer the hospitality employee transportation from the hospitality employee's
residence to and from the large hospitality employer's worksite at no cost to the hospitality
employee in a vanpool or bus, or similar multi-passenger vehicle operated by or for the large
hospitality employer.
5.40.060 Preservation of records.
A. Each large hospitality employer shall maintain for at least three (3) years:
(1) for each hospitality employee, a record of his or her name, hours worked, pay rate,
and proof of offer to provide a transit pass, credit toward vanpool or ridesharing service, or direct
transportation consistent with Section 5.40.050; and
(2) a record of the written consents it received from hospitality employees to work more
than ten hours during a shift consistent with Section 5.40.040(C).
B. Each large hospitality employer that owns, controls, and/or operates a hotel shall
additionally maintain for at least three (3) years for each room cleaner a record of his or her
name, pay rates received, and the rooms (or at the large hospitality employer's option, total
amount of square footage) each room cleaner has cleaned on each workday.
C . The large hospitality employer shall make the records specified in Subsections A and B
of this Section available to employees of the large hospitality employer or their representativ e s
for inspection and copying except the hospitality employees ' names (and any addresses and
social security numbers) shall be redacted unless the requester is a hospitality employee
requesting records concerning herself. Failure of the large hospitality employ er to provide a copy
of such records will result in a penalty of at least one hundred dollars ($100.00) per day up to one
thousand dollars ($1 ,000.00) per day, the amount to be set b y the court.
5.40.070 -No retaliation.
No person shall discharge, reduce in compensation, increase workload, impose fees or charges,
change duties or otherwise take adverse action against any hospitality employee for opposing
any practice proscribed by this Chapter, for participating in proceedings related to this Chapter,
for seeking to enforce his or her rights under this article b y any lawful means, or for otherwise
asserting rights under this Chapter. A person terminating or taking any other adverse action
against any hospitality employee who has engaged in any of the foregoing activities within one
year preceding the termination or other adverse action shall provide to the hospitality employee
at or before the time of the termination or other adverse action a detailed written statement of the
reason or reasons for the termination or other adverse action including all the facts substantiating
the reason or reasons and all facts known to the person that contradict the substantiating facts.
5
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5.40.080 -Waiver.
The provisions of this Chapter may not be waived by agreement between an individual
hospitality employee and a large hospitality employer. All of the provisions of Section 5 .40.030
or Section 5.40.040, or any part thereof, may be waived in a bona fide collective bargaining
agreement but only if the waiver is explicitly set forth in such agreement in clear and
unambiguous terms . Unilateral implementat ion of terms and conditions of employment by either
party to a collective bargaining relationship shall not constitute, or be permitted , as a waiver of
all or any part of the provisions of this Chapter.
5.40.090 -Enforcement.
A. A hospitality employee or representative of hospitality employees claiming violation of
this Chapter may bring an action in the Superior Court and shall be entitled to all remedies
available under the law or in equity appropriate to remedy any such violation , including but not
limited to injunctive relief or other equitable relief, including reinstatement, and compensatory
damages and other relief provided in this subsection. In addition to any other remedy to which a
hospitality employee is entitled under this Chapter, a large hospitality employer that violates
Section 5.40.030 shall be liable to each affected hospitality employee for statutory damages in
the amount of fifty dollars ($50) for each day on which a violation occurred; and a large
hospitality employer that violates Section 5.40 .040 shall be liable to each affected hospitality
employee for statutory damages in the amount of fifty dollars ($50) for each day on which a
violation occurred . In the event of a willful violation of Section 5.40.070, the amount of
damages attributable to lost income due to the violation shall be trebled. If a hospitality
employee is the prevailing party in any legal action taken pursuant to this Chapter, the court shall
award reasonable attorney's fees and costs as part of the costs recoverable.
B . Each hospitality employer shall give written notification to each current hospitality
employee, and to each new hospitality employee at time of hire, of his or her rights under this
Chapter. The notification shall be in each language spoken by more than ten (10) hospitality
employees .
C. A large hospitality employer that contracts with another person, including, without
limitation, another large hospitality employer, a temporary staffing agency, employee leasing
agency or professional employer organization, to obtain the services of hospitality employees
shall share all civil legal responsibility and civil liability for violations of this Chapter by that
person for hospitality employees performing work pursuant to the contract. For the purposes of
this subsection, the term "person" shall not include : (1) A bona fide nonprofit, community-based
organization that provides services to workers; (2) A bona fide labor organization or
apprenticeship program or hiring hall operated pursuant to a collective bargaining agreement.
5.40.100 -Severability.
If any provision or application of this Chapter is declared illegal, invalid or inoperative, in whole
or in part, by any court of competent jurisdiction, the remaining provisions and portions thereof
6
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shall remain in full force or effect. The courts are hereby authorized to reform the provisions of
this Chapter in order to preserve its maximum permissible effect.
5.40.110 -No Preemption of Higher Standards.
This Chapter does not preempt or prevent the establishment of superior standards or the
expansion of coverage by ordinance, resolution, contract, or any other action of the City of
Rancho Palos Verdes . This Chapter shall not be construed to limit a discharged hospitality
employee's right to bring a common law cause of action for wrongful termination.
5.40.120 -Regulations.
The City shall have authority to adopt rules and regulations consistent with and necessary for the
implementation of this Chapter. Such rules and regulations shall have the force and effect of
law , and may be relied upon by large hospitality employers, hospitality employ ees and other
parties to determine their rights and respons ibilities under this Chapter.
Section 2. Conflicting Measures.
Consistent with California Elections Code § 9221 , should another ordinance containing
provisions that conflict w ith this ordinance be adopted by voters at the same election as thi s
ordinance is adopted, the terms of the ordinance that receives the higher number of affinnative
votes shall control.
Section 3. Effective Date.
The proposed ordinance that is the subject of this initiative, once approved by the voters at
the Nov ember 6, 2018 election, or such other election as authorized by law, shall be deemed
adopted upon the date that the vote is declar ed by the City Council, and shall go into effect 10
day s after that date .
7
C-11
Resolution No. 2018-XX
Calling Special Election for Measure
Page 1 of 5
RESOLUTION NO. 2018-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A
SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY,
_____________________, 2018, AND ORDERING THE SUBMISSION TO THE
VOTERS AN INITIATIVE MEASURE TO ADOPT FOR EMPLOYEES OF LARGE
HOTELS, GOLF COURSES, AND AMUSEMENT PARKS NEW REGULATIONS,
PROTECTIONS, AND PROCEDURES CONCERNING WAGES, HOURS, WORK,
TRANSIT, PANIC BUTTONS, RESPONSES TO THREATENING CONDUCT, AND
RECORDS
WHEREAS, under the provisions of the laws relating to general law cities in the
State of California, a Special Municipal Election shall be held on Tuesday,
_________________, 2018, for the purpose of submitting an initiative measure to the
qualified voters of the City; and
WHEREAS, pursuant to Section 9215 of the Elections Code of the State of
California, the City Council has received a duly signed and certified initiative petition
containing the signatures of not less than ten percent (10%) of the registered voters of
the City according to the last report of registration by the county elections official to the
Secretary of State pursuant to Section 2187 of the Elections Code of the State of
California, which initiative petition proposes a City Ordinance that would add Chapter
5.40, Hospitality Working Conditions, to the City of Rancho Palos Verdes Municipal
Code, and applies to “large hospitality employers,” being owners or operators of a hotel
(50+ rooms), golf course, or amusement park, with 50+ hospitality employees
(“Employers”); and,
WHEREAS, Section 9215 of the Elections Code requires the City Council to
either adopt the initiative measure, without alteration, or submit the initiative measure to
a vote of the electorate of the City at an election; and,
WHEREAS, the City Council has not adopted the initiative measure in
accordance with Elections Code Section 9215(a) and, therefore, is required to submit
the ordinance to the voters of the City of Rancho Palos Verdes; and
WHEREAS, the City Council desires pursuant to Elections Code Sections
9215(b) and 1405(b) to submit the initiative measure to the voters of the City of Rancho
Palos Verdes at a Special Municipal Election to be held on Tuesday,
______________________, which is not less than 88 days nor more than 103 days
after the order of the election; and,
WHEREAS, pursuant to the provisions of Section 1405(b) of the Elections Code,
the City Council is authorized to set and hold a special election regarding the initiative
measure on the date of the Special Municipal Election herein set forth.
D-1
Resolution No. 2018-XX Call Election for Measure
Page 2 of 5
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. That pursuant to the requirements of the laws of the State of
California relating to General Law Cities, there is called and ordered to be held in the
City of Rancho Palos Verdes, California, on Tuesday, _______________________,
2018, a Special Municipal Election for the purpose of proposing a Hotel Workplace
Requirements and Restrictions Ordinance to the qualified voters of the City. As required
by Elections Code Section 13247, the abbreviated form of the measure to appear on the
ballot is specified below in Section 2 of this Resolution. The City Clerk is hereby
authorized and directed to make any changes to the text of the proposition or this
resolution as required to conform to any requirements of law. The full text of the
proposed initiative Ordinance to be submitted to the voters is set forth in Exhibit “A”,
attached hereto and incorporated herein by this reference as if set forth in full.
SECTION 2. That the City Council, pursuant to its right and authority, does order
submitted to the voters at the Special Municipal Election the following question:
Shall the measure, known as the HOSPITALITY
WORKING CONDITIONS ORDINANCE, placed
on the ballot by initiative petition, applicable to large
hotels, golf courses and amusement parks, and which
enacts a wage floor of $15/hour (CPI adjustments),
limits daily work hours, limits daily square footage of
rooms cleaned, requires panic-buttons for employees,
requires maintenance of detailed compliance records,
prohibits employer retaliation against employees,
requires employee notices, and imposes fines and
attorneys’ fees for violation, be adopted?
YES
NO
SECTION 3. That the vote requirement for the measure to pass is a majority
(50%+1) of the votes.
SECTION 4. That the ballots to be used at the election shall be in form and
content as required by law, and that the election shall be held and conducted in the
manner prescribed by law.
SECTION 5. That the City Clerk is authorized, instructed and directed to procure
and furnish any and all official ballots, notices, printed matter and all supplies,
equipment and paraphernalia that may be necessary in order to properly and lawfully
conduct the election, and to coordinate with the County of Los Angeles Registrar-
Recorder/County Clerk as available.
D-2
Resolution No. 2018-XX Call Election for Measure
Page 3 of 5
SECTION 6. That the polls for the election shall be open at seven o’clock a.m. of
the day of the election and shall remain open continuously from that time until eight
o’clock p.m. of the same day when the polls shall be closed, pursuant to Election Code
Section 10242, except as provided in Section 14401 of the Elections Code of the State
of California.
SECTION 7. That in all particulars not recited in this resolution, the election shall
be held and conducted as provided by law for holding municipal elections.
SECTION 8. That pursuant to Elections Code § 12310, a stipend for services for
the persons named as precinct board members is fixed at the sum of $___ for each
Inspector with $__ for attending a training class, $__ for picking up election supplies and
$__ for returning supplies and $__ for each Clerk for the election plus an additional $__
to attend a training class. The rental for each of polling place, where a charge is made,
shall be the sum of $__ for government owned public facility or $__ for a private
residence or business for the election. When required, the compensation of the
Custodian of a building shall be $__ for the election.
SECTION 9. That notice of the time and place of holding the election is given
and the City Clerk is authorized, instructed and directed to give further or additional
notice of the election, in time, form and manner as required by law.
SECTION 10. That the City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolutions.
SECTION 11. The City Council authorizes the City Clerk to administer said
election and all reasonable and actual election expenses shall be paid by the City upon
presentation of a properly submitted bill.
PASSED, APPROVED, and ADOPTED this 17th day of July 2018.
/s/ Susan Brooks
Mayor
ATTEST:
/s/ Emily Colborn
City Clerk
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Resolution No. 2018-XX Call Election for Measure
Page 4 of 5
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, Emily Colborn, City Clerk of The City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2018- was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof held on July 17, 2018.
__________________________
City Clerk
D-4
Resolution No. 2018-XX Call Election for Measure
Page 5 of 5
EXHIBIT “A”
D-5
I:: (., I:: v
.A TY OF RANCHO PALOS VERDE
The People of the Rancho Palos Verdes do hereby ordain:
Section 1. A new Chapter 5.40, entitled "Hospitality Working Conditions,"i
of Rancho Palos Verdes Municipal Code, as follows:
5.40.010 -Definitions.
FEB 2 'l 2018
"Additional-bed rooms" means a room with additional beds such as cots or rollaways.
"Amusement park" means any grounds or enclosure wherein concessions and adult rides
of a permanent nature and having a fixed location are situated.
"Checkout" means a room where the guests are ending their stay.
"Emergency" means an immediate threat to public safety or of substantial risk of property loss or
destruction.
"Food server" means a person whose principal duties are to serve or deliver food or beverages to
guests, regardless of who employs the person.
"Golf course" means any large, landscaped area having a series of holes spaced considerably
apart designed for the playing of the game of golf. For the purpose of this Chapter, a golf course
does not include a driving range, a miniature golf course, or a property whose principal owner or
operator is a government entity.
"Guest" means a patron of a hotel, golf course, or amusement park, as defined herein, including
without limitation, registered guests and visitors invited by registered guests.
"Guest room" means a room made available by a hotel for transient occupancy.
"Hotel" means a facility that is designated or used for lodging and other related services
for the public, and containing 50 or more guest rooms, or suites of rooms (adjoining
rooms do not constitute a suite of rooms). "Hotel" also includes any contracted, leased
or sublet premises connected to or oper ated in conjunction with the facility's purpose , or
providing services at the facility.
"Large hospitality employer'' means a person who owns, controls, and/or operates a
hotel, golf cour~e, or amusement park in the City of Rancho Palos Verdes, and employs
or exercises control over the wages, hours, or working conditions of 50 or more
employees at such hotel, golf course, or amusement park, directly or through an agent
or any other person, including through the services of a temporary service or staffing
agency or similar entity. The term "large hospitality employer" also includes any
contracted, leased or sublet prem ises connected to or operated in conjunction with such
hotel 's, golf course's, o r amusement park's purpose, or a person, other than a
hospitality employee, who provides services at such hotel , golf course, or amusement
park in conjunction with the hotel's, golf course's, or amusement park's purpose .
"Hospitality employee" means any individual who (1) is employed b y a large hospitality
employer; and (2) was hired to or did work an average 5 hours/week for 4 weeks at one or more
hotels, golf courses, or amusement parks.
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"Panic button" means an emergency electronic contact device carried by a hospitality employee
which allows him or her in the event of an ongoing crime, threat, or other emergency to alert a
security guard responsible for providing immediate on-scene assistance.
"Person" means an individual, corporation, partnership, limited partnership, limited liability
partnership, limited liability company, business trust, estate, trust, association, joint venture,
agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign .
"Ridesharing service" means a dynamic, on -demand, fee-based service that supports real-time
ridesharing or carpooling through short-term arrangements enabled by GPS , wireless service, or
other technologies.
"Room cleaner" means a person whose principal duties are to clean and put in order residential
guest rooms in a hotel, regardless of who employs the person.
"Transit Pass" means any pass, token, fare card, voucher or similar item entitling a person to
transportation on public transit within the meaning of 26 U.S.C. § 132(f)(5)(A), as the federal
law may be amended from time to time, including but not limited to , travel by bus, light rail or
train.
"Vanpool" means a "commuter highway vehicle" within the meaning of 26 U .S.C. §
132(f)(5)(B), as the federal law may be amended from time to time, which currently means any
highway vehicle:
(A) the seating capacity of which is at least 6 adults (not including the driver), and
(B) at least 80% of the mileage use o f which can reasonably be expected to be (i) for the
purpose of transporting employees in connection with travel between their residences
and their place of employment; and (ii) on trips during which the number of
employees transported for such p urposes is at least 1/2 of the seating capacity of such
vehicle (not including the driver).
"Workday" means a 24-hour period beginning at 12:00 a.m. and ending at 11 :59 p .m .
5.40.020 -Measures to protect hospitality employees from threatening behavior.
A. Purpose . Hospitality employees who work by themselves in guest rooms, restrooms, or
in isolated locations are vulnerable to crimes and other threatening behavior, including sexual
assault. This Section enables hospitality employees to protect their safety by, among other
measures, requiring that large hospitality employers provide workers with panic buttons which
they may use to report threatening conduct or other emergencies. Many instances of sexual
assault go unreported to the police. This Section also includes provisions that support
employees' ability to report criminal and threatening behavior to the proper authorities.
B . A large hospitality employer shall provide to each hospitality employee who works as a
room cleaner, food server, or any other hosp itality employee who so requests, at no cost to the
hospitality employee, a panic button.
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(1) If a hospitality employee encounters a situation necessitating his or her use of the
panic button as described above, the hospitality employee may cease working and remove
him/herself from the situation to await the arrival of the security guard responsible for providing
immediate assistance . No hospitality employee may be disciplined for ceasing work under the se
circumstances .
(2) No hospitality employee may be discip lined for use of a panic button absent clear
and convincing evidence the hospitality emp loyee knowingly and intentionally made a false
claim of emergency.
C. A hospitality employee who brings. to the attention of a large hospitality employer the
occurrence of violence or threatening behavior, including but not limited to indecent exposure,
solicitation, assault, or coercive sexual conduct by a guest or other person shall be afforded the
following rights.
(1) The large hospitality employer shall immediately allow the affected hospitality
employee sufficient paid time to contact the police and provide a police statement and to consult
with a counselor or advisor of the hospitality employee's choosing; the large hospitality
employer will permit, but may never require, the complaining hospitality employee to report an
incident involving alleged criminal conduct to the law enforcement agency with jurisdiction ; and
(2) The large hospitality employer shall cooperate with any investigation into the
incident undertaken by the law enforcement agency and /or any attorney for the complaining
hospitality employee .
D. Each large hospitality employer sh all p lace a sign on the back of the entrance door of
each public restroom and, where app licable, on the back of each entrance door of a guest room ,
written in a font size of no less than 18 points, that includes the heading "The Law Protects
Hospitality Employees From Threatening Behavior," a citation to this Chapter of the Rancho
Palos Verdes Municipal Code, and notice of the fact that the large hospitality employer is
providing panic buttons to employees .
5.40.030-Large H ospitality E mployer M inimum W age
A. On and after January 1, 2019, large hospitality employers shall pay a wage of no less than
Fifteen Dollars per hour, which shall increase by One Dollar per hour on each January 1
thereafter through January 1, 2022 .
B . On January 1, 2023 , and annually thereafter, the minimum wage will increase annually to
reflect increases in the cost of living . The cost ofliving increase shall be the greater of (1) two
percent (2 %) or (2) the percentage increase as of September 30, 2022 , and as of September 30 in
any subsequent year for further annual adjustments, over the level as of September 30 of the
preceding year of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-
W) for the Los Angeles Metropolitan Area (Los Ange les-Riverside-Orange County, CA), which
is published by the Bureau of Labor Statistics, U .S . Department of Labor or the successor index
or federal agency. The C ity Manager shall publish a bulletin by November 1 of each year
announcing the adjusted rates, which shall take effect the following January 1. Such bulletin will
be made available to all Employers and to any other person who has filed with the City Manager
3
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a request to receive such notice, but lack of notice shall not excuse noncompliance with this
Section . The City Manager shall prescribe a poster advising Employees of their rights under this
article and distribute it to all Employers. An Employer shall post the notice in a prominent place
where it will be seen by Emp loyees . An Employer shall provide written notification of the rate
adjustments to each of its Employees and make the necessary payroll adjustments by January I
following the publication of the bulletin.
5.40.04 0 - H uman e w orkload.
A. Purpose. Hospitality employees who clean guest rooms are frequently assigned overly
burdensome room cleaning quotas and unexpected overtime, which undermines the public
interest in ensuring that room cleaners can perfonn their work in a manner that adequately
protects public health and interferes with their ability to meet family and personal obligations .
This provision assures that workers receive fair compensation when their workload assignments
exceed proscribed limits and prohibits hospitality employers from assigning employees overtime
work when their shifts exceed 10 hours in a day, except in emergency situations , without
obtaining workers' informed consent.
B. A large hospitality employer that owns, controls, and/or operates a hotel shall not require
a room cleaner to clean rooms amounting to more than 4 ,000 square feet of floorspace, or more
than the maximum floor space otherwise specified in this Section, in any one, eight-hour
workday unless the large hospitality employer pays the room cleaner twice his or her regular rate
of pay for all hours worked by the room cleaner during the workday . If a room cleaner works
fewer than eight hours in a workday, the maximum floor space shall be reduced on a prorated
basis . When a room cleaner during a workday is assigned to clean any combination of seven or
more checkout rooms or additional-bed rooms, the maximum floorspace to be cleaned shall be
reduced by 500 square feet for each such checkout or additional-bed room over six . The
limitations contained herein apply to any combination of spaces, including guest rooms and
suites , meeting rooms or hospitality rooms , and apply regardless of the furniture , equipment or
amenities in any rooms .
C. A large hospitality employer shall not suffer or permit a hospitality employee to work
more than 10 hours in any workday unless t he hospitality employee consents. Consents must be
written and signed by the hospitality employee or communicated electronically through an
account or number particular to the hospitality employee . No consent is valid unless the large
hospitality employer has advised the hospitality employee in writing not more than 30 days
preceding the consent that the hospitality employee may decline to work more than 10 hours in
any workday and that the hospitality emp loyer will not subject the hospitality employee to any
adverse action for declining. An assignment in excess of 10 hours in a workday due to an
emergency shall not violate this Section.
5.4 0 .0 5 0 - Sup p ort for A lte rnative Tran sportati o n
As to each hospitality employee, a large hospitality employer shall take one of the following
actions:
4
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(1) Offer to the hospitality employee each month a transit pass for the public transit
system requested by the hospitality employee or credit toward vanpool or ridesharing service
charges at least equal in value to the purchase price of the monthly transit pass, which shall at a
minimum be equal to the cost of a non-discounted adult Los Angeles Metro Pass enabling u s e at
no additional charge of all Metro services and which may be used by the hospitality employee
for the purpose of commuting to and from work for the large hospitality employer.
(2) Offer the hospitality employee transportation from the hospitality employee's
residence to and from the large hospitality employer's worksite at no cost to the hospitality
employee in a vanpool or bus, or similar multi-passenger vehicle operated by or for the large
hospitality employer.
5.40.060 Preservation of records.
A. Each large hospitality employer shall maintain for at least three (3) years:
(1) for each hospitality employee, a record of his or her name, hours worked, pay rate,
and proof of offer to provide a transit pass, credit toward vanpool or ridesharing service, or direct
transportation consistent with Section 5.40.050; and
(2) a record of the written consents it received from hospitality employees to work more
than ten hours during a shift consistent with Section 5.40.040(C).
B. Each large hospitality employer that owns, controls, and/or operates a hotel shall
additionally maintain for at least three (3) years for each room cleaner a record of his or her
name, pay rates received, and the rooms (or at the large hospitality employer's option, total
amount of square footage) each room cleaner has cleaned on each workday.
C . The large hospitality employer shall make the records specified in Subsections A and B
of this Section available to employees of the large hospitality employer or their representativ e s
for inspection and copying except the hospitality employees ' names (and any addresses and
social security numbers) shall be redacted unless the requester is a hospitality employee
requesting records concerning herself. Failure of the large hospitality employ er to provide a copy
of such records will result in a penalty of at least one hundred dollars ($100.00) per day up to one
thousand dollars ($1 ,000.00) per day, the amount to be set b y the court.
5.40.070 -No retaliation.
No person shall discharge, reduce in compensation, increase workload, impose fees or charges,
change duties or otherwise take adverse action against any hospitality employee for opposing
any practice proscribed by this Chapter, for participating in proceedings related to this Chapter,
for seeking to enforce his or her rights under this article b y any lawful means, or for otherwise
asserting rights under this Chapter. A person terminating or taking any other adverse action
against any hospitality employee who has engaged in any of the foregoing activities within one
year preceding the termination or other adverse action shall provide to the hospitality employee
at or before the time of the termination or other adverse action a detailed written statement of the
reason or reasons for the termination or other adverse action including all the facts substantiating
the reason or reasons and all facts known to the person that contradict the substantiating facts.
5
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5.40.080 -Waiver.
The provisions of this Chapter may not be waived by agreement between an individual
hospitality employee and a large hospitality employer. All of the provisions of Section 5 .40.030
or Section 5.40.040, or any part thereof, may be waived in a bona fide collective bargaining
agreement but only if the waiver is explicitly set forth in such agreement in clear and
unambiguous terms . Unilateral implementat ion of terms and conditions of employment by either
party to a collective bargaining relationship shall not constitute, or be permitted , as a waiver of
all or any part of the provisions of this Chapter.
5.40.090 -Enforcement.
A. A hospitality employee or representative of hospitality employees claiming violation of
this Chapter may bring an action in the Superior Court and shall be entitled to all remedies
available under the law or in equity appropriate to remedy any such violation , including but not
limited to injunctive relief or other equitable relief, including reinstatement, and compensatory
damages and other relief provided in this subsection. In addition to any other remedy to which a
hospitality employee is entitled under this Chapter, a large hospitality employer that violates
Section 5.40.030 shall be liable to each affected hospitality employee for statutory damages in
the amount of fifty dollars ($50) for each day on which a violation occurred; and a large
hospitality employer that violates Section 5.40 .040 shall be liable to each affected hospitality
employee for statutory damages in the amount of fifty dollars ($50) for each day on which a
violation occurred . In the event of a willful violation of Section 5.40.070, the amount of
damages attributable to lost income due to the violation shall be trebled. If a hospitality
employee is the prevailing party in any legal action taken pursuant to this Chapter, the court shall
award reasonable attorney's fees and costs as part of the costs recoverable.
B . Each hospitality employer shall give written notification to each current hospitality
employee, and to each new hospitality employee at time of hire, of his or her rights under this
Chapter. The notification shall be in each language spoken by more than ten (10) hospitality
employees .
C. A large hospitality employer that contracts with another person, including, without
limitation, another large hospitality employer, a temporary staffing agency, employee leasing
agency or professional employer organization, to obtain the services of hospitality employees
shall share all civil legal responsibility and civil liability for violations of this Chapter by that
person for hospitality employees performing work pursuant to the contract. For the purposes of
this subsection, the term "person" shall not include : (1) A bona fide nonprofit, community-based
organization that provides services to workers; (2) A bona fide labor organization or
apprenticeship program or hiring hall operated pursuant to a collective bargaining agreement.
5.40.100 -Severability.
If any provision or application of this Chapter is declared illegal, invalid or inoperative, in whole
or in part, by any court of competent jurisdiction, the remaining provisions and portions thereof
6
D-11
shall remain in full force or effect. The courts are hereby authorized to reform the provisions of
this Chapter in order to preserve its maximum permissible effect.
5.40.110 -No Preemption of Higher Standards.
This Chapter does not preempt or prevent the establishment of superior standards or the
expansion of coverage by ordinance, resolution, contract, or any other action of the City of
Rancho Palos Verdes . This Chapter shall not be construed to limit a discharged hospitality
employee's right to bring a common law cause of action for wrongful termination.
5.40.120 -Regulations.
The City shall have authority to adopt rules and regulations consistent with and necessary for the
implementation of this Chapter. Such rules and regulations shall have the force and effect of
law , and may be relied upon by large hospitality employers, hospitality employ ees and other
parties to determine their rights and respons ibilities under this Chapter.
Section 2. Conflicting Measures.
Consistent with California Elections Code § 9221 , should another ordinance containing
provisions that conflict w ith this ordinance be adopted by voters at the same election as thi s
ordinance is adopted, the terms of the ordinance that receives the higher number of affinnative
votes shall control.
Section 3. Effective Date.
The proposed ordinance that is the subject of this initiative, once approved by the voters at
the Nov ember 6, 2018 election, or such other election as authorized by law, shall be deemed
adopted upon the date that the vote is declar ed by the City Council, and shall go into effect 10
day s after that date .
7
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Resolution No. 2018-XX
Request for County Services
Page 1 of 2
RESOLUTION NO. 2018-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE
COUNTY OF LOS ANGELES TO RENDER SPECIFIED SERVICES TO THE CITY
RELATING TO THE CONDUCT OF A SPECIAL MUNICIPAL ELECTION TO BE HELD
ON TUESDAY, ______________________, 2018
WHEREAS, the City Council of the City of Rancho Palos Verdes called a Special
Municipal Election to be held on Tuesday, ___________________, 2018, for the purpose
of proposing a City Ordinance that would add Chapter 5.40, Hospitality Working
Conditions, to the City of Rancho Palos Verdes Municipal Code to the qualified voters of
the City; and
WHEREAS, in the course of conduct of the election it is necessary for the City to
request services of the County; and
WHEREAS, all necessary expenses in performing these services shall be paid by
the City of Rancho Palos Verdes;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. That pursuant to the provisions of Section 10002 of the Elections Code of
the State of California, this City Council requests the Board of Supervisors of the County
to permit the County Election Department to prepare and furnish the following for use in
conducting the election:
1. A listing of county precincts with number of registered voters in each, so city may
consolidate election precincts into city voting precincts, and maps of the voting
precincts.
2. A list of polling places and poll workers the county uses for their elections.
3. The voter record of the names and addresses of all eligible registered voters in the
City in order that the City’s consultant may:
a. Produce labels for vote-by-mail voters;
b. Produce labels for sample ballot pamphlets and/or voter information guides;
c. Print Rosters of Voters and Street Indexes;
4. Voter signature verification services as needed; and
5. Make available to the City election equipment and assistance as needed according
to state law.
SECTION 2. That the City shall reimburse the County for services performed when the
E-1
Resolution No. 2018-XX
Request Election Services from County
Page 2 of 2
work is completed and upon presentation to the City of a properly approved bill.
SECTION 3. That the City Clerk is directed to forward without delay to the Board of
Supervisors and to the County Election Department, each a certified copy of this
resolution.
SECTION 4. That the City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED, and ADOPTED this 17th day of July 2018.
/s/ Susan Brooks
Mayor
ATTEST:
/s/ Emily Colborn
City Clerk
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, Emily Colborn, City Clerk of The City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2018- was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof held on July 17, 2018.
__________________________
City Clerk
E-2
Resolution No. 2018-XX
Authorize Arguments & Impartial Analysis
Page 1 of 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, SETTING PRIORITIES FOR FILING A WRITTEN
ARGUMENTS AND DIRECTING THE CITY ATTORNEY TO PREPARE AN
IMPARTIAL ANALYSIS REGARDING A CITY MEASURE TO BE SUBMITTED AT
THE SPECIAL MUNICIPAL ELECTION HELD ON TUESDAY,
______________________, 2018.
WHEREAS, a Special Municipal Election is to be held in the City of Rancho
Palos Verdes, California, on Tuesday, _______________________, 2018, at which
there will be submitted to the voters a ballot measure to consider adopting a proposed
City Ordinance that would add Chapter 5.40, Hospitality Working Conditions, to the City
of Rancho Palos Verdes Municipal Code;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. Pursuant to California Elections Code Section 9282(a) the persons
filing an initiative petition may file a written argument in favor of the Ordinance, and the
legislative body may submit an argument against the Ordinance. An argument shall
not exceed 300 words in length.
SECTION 2. That the City Council authorizes the following member(s) of its
body: ________________, ________________, to file, if desired, a written argument
not exceeding 300 words regarding the initiative measure as specified above,
accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in
accordance with Article 4, Chapter 3, Division 9 of the California Elections Code.
SECTION 3. All arguments may be changed or withdrawn until Tuesday, July
31, 2018 by 5:30 P.M., after which no arguments for or against the City measure may
be submitted to the City Clerk.
SECTION 4. The arguments shall be filed with the City Clerk, signed, with the
printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf
of an organization, the name of the organization, and the printed name and signature of
at least one of its principal officers who is the author of the argument. The arguments
shall be accompanied by the Form of Statement to be Filed by Author(s) of Argument as
provided for in California Elections Code Section 9600.
SECTION 5. That the City Clerk/Elections Official is directed to follow the format
for ballot arguments provided in subsections (d), (e), and (f) of Section 9282 of the
California Elections Code.
F-1
Resolution No. 2018-XX
Authorize Arguments & Impartial Analysis
Page 2 of 3
SECTION 6. That if more than one argument for or against the measure is
submitted to the City Clerk/Elections Official within the time prescribed, she shall give
preference and priority first, to “arguments against” submitted by member(s) of the City
Council and “arguments in favor of” submitted by bona fide sponsors or proponents of
the measure, as authorized by this Resolution, and second, to individual voters, bona
fide associations, or a combination thereof, in the order set forth in California Elections
Code Section 9287.
SECTION 7. That the City Council directs the City Clerk to transmit a copy of the
initiative measure to the City Attorney, unless the organization or salaries of the office of
the City Attorney are affected. In accordance with California Elections Code Section
9280, the City Attorney is hereby directed as follows:
a. Prepare an impartial analysis of the initiative measure showing the effect of
the measure on the existing law and the operation of the measure.
b. The analysis shall include a statement indicating whether the measure was
placed on the ballot by a petition signed by the requisite number of voters or
by the governing body of the city. If the measure affects the organization or
salaries of the office of the City Attorney, the City Council may direct the City
Clerk to prepare the impartial analysis.
c. The analysis shall be printed preceding the arguments for and against the
measure. The analysis shall not exceed 500 words in length.
d. If the entire text of the measure is not printed on the ballot, nor in the voter
information guide, there shall be printed immediately below the impartial
analysis, in no less than 10-point bold type, a legend substantially as follows:
“The above statement is an impartial analysis of Ordinance or Measure
[TBD]. If you desire a copy of the ordinance or measure, please call the City
Clerk/Elections Official’s office at (310) 544-5217 and a copy will be mailed at
no cost to you.”
e. The impartial analysis shall be filed by the date set by the City Clerk/Elections
Official for the filing of primary arguments, Tuesday, July 31, 2018 by 5:30
P.M.
SECTION 8. That the City Clerk/Elections Official shall cause the City Attorney’s
Impartial Analysis, and duly selected arguments, to be printed and distributed to voters
in accordance with State law regarding same.
SECTION 9. That the City Clerk shall certify to the passage and adoption of this
resolution and enter it into the book of original resolutions.
F-2
Resolution No. 2018-XX
Authorize Arguments & Impartial Analysis
Page 3 of 3
PASSED, APPROVED, and ADOPTED this 17th day of July 2018.
/s/ Susan Brooks
Mayor
ATTEST:
/s/ Emily Colborn
City Clerk
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, Emily Colborn, City Clerk of The City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2018- was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof held on July 17, 2018.
__________________________
City Clerk
F-3
Resolution No. 2018-XX
Authorize Rebuttal Arguments
Page 1 of 2
RESOLUTION NO. 2018-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, PROVIDING FOR THE FILING OF REBUTTAL
ARGUMENTS FOR A VOTER-SPONSORED MEASURE SUBMITTED AT A
SPECIAL MUNICIPAL ELECTION ON ___________________________, 2018.
WHEREAS, a Special Municipal Election is to be held in the City of Rancho
Palos Verdes, California, on Tuesday, _______________________, 2018, at which
there will be submitted to the voters a ballot measure to consider adopting a proposed
City Ordinance that would add Chapter 5.40, Hospitality Working Conditions, to the City
of Rancho Palos Verdes Municipal Code;
WHEREAS, Section 9282 of the California Elections Code provides for written
arguments to be filed in favor of or against city measures not to exceed 300 words in
length; and
WHEREAS, Section 9285 of the California Elections Code authorizes the City
Council, by majority vote, to adopt provisions to provide for the filing of rebuttal
arguments for city measures submitted at municipal elections.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. That pursuant to Section 9285(a)(1) of the California Elections
Code, when the City Clerk/Elections Official has selected an argument in favor and an
argument against a measure to be printed in the voter information guide, the City
Clerk/Elections Official shall send a copy of the argument in favor of the measure to the
authors of the argument against the measure and a copy of an argument against the
measure to the authors of the argument in favor of the measure.
SECTION 2. That pursuant to Section 9285(a)(2) of the California Elections
Code, the author or a majority of the authors of an argument relating to a city measure
may prepare and submit a rebuttal argument or may authorize in writing another person
or persons to prepare, submit, or sign the rebuttal argument.
SECTION 3. That pursuant to Section 9285(a)(3) of the California Elections
Code, a rebuttal argument shall not exceed 250 words.
SECTION 4. That pursuant to Section 9285(a)(4) of the California Elections
Code, A rebuttal argument relating to a city measure shall be filed with the City
Clerk/Elections Official no later than 10 days after the final filing date for primary
arguments, setting the deadline for rebuttals as Friday, August 10, 2018 by 4:30 P.M.
The rebuttal argument shall be accompanied by the Form of Statement to be Filed by
Author(s) of Argument as provided for in California Elections Code Section 9600.
G-1
01203.0001/487632.3 Resolution No. 2018-XX
Authorize Rebuttal Arguments
Page 2 of 2
SECTION 5. That pursuant to Section 9285(a)(5) of the California Elections
Code, a rebuttal argument relating to a city measure shall not be signed by more than
five persons, shall be printed in the same manner as a direct argument, and shall
immediately follow the direct argument which it seeks to rebut.
SECTION 6. That all previous resolutions providing for the filing of rebuttal
arguments for city measures are repealed.
SECTION 7. That the provisions of Sections 1-5 of this Resolution shall apply
only to the Special Municipal Election to be held on __________________, 2018, and
shall then be repealed.
SECTION 8. That the City Clerk shall certify to the passage and adoption of
this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED, and ADOPTED this 17th day of July 2018.
/s/ Susan Brooks
Mayor
ATTEST:
/s/ Emily Colborn
City Clerk
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, Emily Colborn, City Clerk of The City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2018- was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof held on July 17, 2018.
__________________________
City Clerk
G-2
Resolution No. 2018-XX
Call 2019 Election for Measure
Page 1 of 4
RESOLUTION NO. 2018-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, ORDERING THE SUBMISSION TO THE VOTERS AT THE
GENERAL MUNICIPAL ELECTION SCHEDULED BY LAW TO BE HELD ON
TUESDAY, NOVEMBER 5, 2019 AN INITIATIVE MEASURE TO ADOPT FOR
EMPLOYEES OF LARGE HOTELS, GOLF COURSES, AND AMUSEMENT PARKS
NEW REGULATIONS, PROTECTIONS, AND PROCEDURES CONCERNING WAGES,
HOURS, WORK, TRANSIT, PANIC BUTTONS, RESPONSES TO THREATENING
CONDUCT, AND RECORDS
WHEREAS, pursuant to Section 9215 of the Elections Code of the State of
California, the City Council has received a duly signed and certified initiative petition
containing the signatures of not less than ten percent (10%) of the registered voters of
the City according to the last report of registration by the county elections official to the
Secretary of State pursuant to Section 2187 of the Elections Code of the State of
California, which initiative petition proposes a City Ordinance that would add Chapter
5.40, Hospitality Working Conditions, to the City of Rancho Palos Verdes Municipal Code,
and applies to “large hospitality employers,” being owners or operators of a hotel (50+
rooms), golf course, or amusement park, with 50+ hospitality employees (“Employers”);
and
WHEREAS, Section 9215 of the Elections Code requires the City Council to either
adopt the initiative measure, without alteration, or submit the initiative measure to a vote
of the electorate of the City at an election; and
WHEREAS, the City Council has not adopted the initiative measure in accordance
with Elections Code Section 9215(a) and, therefore, is required to submit the ordinance
to the voters of the City of Rancho Palos Verdes; and
WHEREAS, under the provisions of the laws relating to general law cities in the
State of California and the Rancho Palos Verdes Municipal Code, a General Municipal
Election shall be held on Tuesday, November 5, 2019 (which as of July 17, 2018 is the
City’s next regular election); and
WHEREAS, the City Council desires pursuant to Elections Code Sections 9215(b)
and 1405(a) to submit the initiative measure to the voters of the City of Rancho Palos
Verdes at the City’s next regular election which will be the General Municipal Election to
be held on Tuesday, November 5, 2019, pursuant to Section 1 of City of Rancho Palos
Verdes Ordinance No. 591 adopted on November 15, 2016, which reads in part that the
“City of Rancho Palos Verdes general municipal elections for years 2017 and 2019 shall
take place as currently scheduled on the first Tuesday after the first Monday of November
2017 and 2019 respectively.”
H-1
Resolution No. 2018-XX
Call 2019 Election for Measure
Page 2 of 4
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. That the City Council, pursuant to its right and authority, does order
submitted to the voters at the General Municipal Election scheduled by law to be held on
Tuesday, November 5, 2019 (and which will subsequently be timely called and ordered)
the following question:
Shall the measure, known as the HOSPITALITY
WORKING CONDITIONS ORDINANCE, placed
on the ballot by initiative petition, applicable to large
hotels, golf courses and amusement parks, and which
enacts a wage floor of $15/hour (CPI adjustments),
limits daily work hours, limits daily square footage of
rooms cleaned, requires panic-buttons for employees,
requires maintenance of detailed compliance records,
prohibits employer retaliation against employees,
requires employee notices, and imposes fines and
attorneys’ fees for violation, be adopted?
YES
NO
SECTION 2. That the full text of the proposed initiative Ordinance to be submitted
to the voters is set forth in Exhibit “A”, attached hereto and incorporated herein by this
reference as if set forth in full.
SECTION 3. That the vote requirement for the measure to pass is a majority
(50%+1) of the votes.
SECTION 4. That the ballots to be used at the election shall be in form and content
as required by law, and that the election shall be held and conducted in the manner
prescribed by law.
SECTION 5. That the City Clerk is authorized, instructed and directed to
coordinate with the County of Los Angeles Registrar-Recorder/County Clerk to procure
and furnish any and all official ballots, notices, printed matter and all supplies, equipment
and paraphernalia that may be necessary in order to properly and lawfully conduct the
election.
SECTION 6. That the polls for the election shall be open at seven o’clock a.m. of
the day of the election and shall remain open continuously from that time until eight o’clock
p.m. of the same day when the polls shall be closed, pursuant to Election Code Section
10242, except as provided in Section 14401 of the Elections Code of the State of
California.
SECTION 7. That in all particulars not recited in this resolution, the election shall
be held and conducted as provided by law for holding municipal elections.
H-2
Resolution No. 2018-XX
Call 2019 Election for Measure
Page 3 of 4
SECTION 8. That notice of the time and place of holding the election is given and
the City Clerk is authorized, instructed and directed to give further or additional notice of
the election, in time, form and manner as required by law.
SECTION 9. That the City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolutions.
SECTION 10. The City Council authorizes the City Clerk to administer said election
and all reasonable and actual election expenses shall be paid by the City upon
presentation of a properly submitted bill.
PASSED, APPROVED, and ADOPTED this 17th day of July 2018.
/s/ Susan Brooks
Mayor
ATTEST:
/s/ Emily Colborn
City Clerk
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, Emily Colborn, City Clerk of The City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2018- was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof held on July 17, 2018.
__________________________
City Clerk
H-3
Resolution No. 2018-XX
Call 2019 Election for Measure
Page 4 of 4
EXHIBIT “A”
H-4
I:: (., I:: v
.A TY OF RANCHO PALOS VERDE
The People of the Rancho Palos Verdes do hereby ordain:
Section 1. A new Chapter 5.40, entitled "Hospitality Working Conditions,"i
of Rancho Palos Verdes Municipal Code, as follows:
5.40.010 -Definitions.
FEB 2 'l 2018
"Additional-bed rooms" means a room with additional beds such as cots or rollaways.
"Amusement park" means any grounds or enclosure wherein concessions and adult rides
of a permanent nature and having a fixed location are situated.
"Checkout" means a room where the guests are ending their stay.
"Emergency" means an immediate threat to public safety or of substantial risk of property loss or
destruction.
"Food server" means a person whose principal duties are to serve or deliver food or beverages to
guests, regardless of who employs the person.
"Golf course" means any large, landscaped area having a series of holes spaced considerably
apart designed for the playing of the game of golf. For the purpose of this Chapter, a golf course
does not include a driving range, a miniature golf course, or a property whose principal owner or
operator is a government entity.
"Guest" means a patron of a hotel, golf course, or amusement park, as defined herein, including
without limitation, registered guests and visitors invited by registered guests.
"Guest room" means a room made available by a hotel for transient occupancy.
"Hotel" means a facility that is designated or used for lodging and other related services
for the public, and containing 50 or more guest rooms, or suites of rooms (adjoining
rooms do not constitute a suite of rooms). "Hotel" also includes any contracted, leased
or sublet premises connected to or oper ated in conjunction with the facility's purpose , or
providing services at the facility.
"Large hospitality employer'' means a person who owns, controls, and/or operates a
hotel, golf cour~e, or amusement park in the City of Rancho Palos Verdes, and employs
or exercises control over the wages, hours, or working conditions of 50 or more
employees at such hotel, golf course, or amusement park, directly or through an agent
or any other person, including through the services of a temporary service or staffing
agency or similar entity. The term "large hospitality employer" also includes any
contracted, leased or sublet prem ises connected to or operated in conjunction with such
hotel 's, golf course's, o r amusement park's purpose, or a person, other than a
hospitality employee, who provides services at such hotel , golf course, or amusement
park in conjunction with the hotel's, golf course's, or amusement park's purpose .
"Hospitality employee" means any individual who (1) is employed b y a large hospitality
employer; and (2) was hired to or did work an average 5 hours/week for 4 weeks at one or more
hotels, golf courses, or amusement parks.
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"Panic button" means an emergency electronic contact device carried by a hospitality employee
which allows him or her in the event of an ongoing crime, threat, or other emergency to alert a
security guard responsible for providing immediate on-scene assistance.
"Person" means an individual, corporation, partnership, limited partnership, limited liability
partnership, limited liability company, business trust, estate, trust, association, joint venture,
agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign .
"Ridesharing service" means a dynamic, on -demand, fee-based service that supports real-time
ridesharing or carpooling through short-term arrangements enabled by GPS , wireless service, or
other technologies.
"Room cleaner" means a person whose principal duties are to clean and put in order residential
guest rooms in a hotel, regardless of who employs the person.
"Transit Pass" means any pass, token, fare card, voucher or similar item entitling a person to
transportation on public transit within the meaning of 26 U.S.C. § 132(f)(5)(A), as the federal
law may be amended from time to time, including but not limited to , travel by bus, light rail or
train.
"Vanpool" means a "commuter highway vehicle" within the meaning of 26 U .S.C. §
132(f)(5)(B), as the federal law may be amended from time to time, which currently means any
highway vehicle:
(A) the seating capacity of which is at least 6 adults (not including the driver), and
(B) at least 80% of the mileage use o f which can reasonably be expected to be (i) for the
purpose of transporting employees in connection with travel between their residences
and their place of employment; and (ii) on trips during which the number of
employees transported for such p urposes is at least 1/2 of the seating capacity of such
vehicle (not including the driver).
"Workday" means a 24-hour period beginning at 12:00 a.m. and ending at 11 :59 p .m .
5.40.020 -Measures to protect hospitality employees from threatening behavior.
A. Purpose . Hospitality employees who work by themselves in guest rooms, restrooms, or
in isolated locations are vulnerable to crimes and other threatening behavior, including sexual
assault. This Section enables hospitality employees to protect their safety by, among other
measures, requiring that large hospitality employers provide workers with panic buttons which
they may use to report threatening conduct or other emergencies. Many instances of sexual
assault go unreported to the police. This Section also includes provisions that support
employees' ability to report criminal and threatening behavior to the proper authorities.
B . A large hospitality employer shall provide to each hospitality employee who works as a
room cleaner, food server, or any other hosp itality employee who so requests, at no cost to the
hospitality employee, a panic button.
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(1) If a hospitality employee encounters a situation necessitating his or her use of the
panic button as described above, the hospitality employee may cease working and remove
him/herself from the situation to await the arrival of the security guard responsible for providing
immediate assistance . No hospitality employee may be disciplined for ceasing work under the se
circumstances .
(2) No hospitality employee may be discip lined for use of a panic button absent clear
and convincing evidence the hospitality emp loyee knowingly and intentionally made a false
claim of emergency.
C. A hospitality employee who brings. to the attention of a large hospitality employer the
occurrence of violence or threatening behavior, including but not limited to indecent exposure,
solicitation, assault, or coercive sexual conduct by a guest or other person shall be afforded the
following rights.
(1) The large hospitality employer shall immediately allow the affected hospitality
employee sufficient paid time to contact the police and provide a police statement and to consult
with a counselor or advisor of the hospitality employee's choosing; the large hospitality
employer will permit, but may never require, the complaining hospitality employee to report an
incident involving alleged criminal conduct to the law enforcement agency with jurisdiction ; and
(2) The large hospitality employer shall cooperate with any investigation into the
incident undertaken by the law enforcement agency and /or any attorney for the complaining
hospitality employee .
D. Each large hospitality employer sh all p lace a sign on the back of the entrance door of
each public restroom and, where app licable, on the back of each entrance door of a guest room ,
written in a font size of no less than 18 points, that includes the heading "The Law Protects
Hospitality Employees From Threatening Behavior," a citation to this Chapter of the Rancho
Palos Verdes Municipal Code, and notice of the fact that the large hospitality employer is
providing panic buttons to employees .
5.40.030-Large H ospitality E mployer M inimum W age
A. On and after January 1, 2019, large hospitality employers shall pay a wage of no less than
Fifteen Dollars per hour, which shall increase by One Dollar per hour on each January 1
thereafter through January 1, 2022 .
B . On January 1, 2023 , and annually thereafter, the minimum wage will increase annually to
reflect increases in the cost of living . The cost ofliving increase shall be the greater of (1) two
percent (2 %) or (2) the percentage increase as of September 30, 2022 , and as of September 30 in
any subsequent year for further annual adjustments, over the level as of September 30 of the
preceding year of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-
W) for the Los Angeles Metropolitan Area (Los Ange les-Riverside-Orange County, CA), which
is published by the Bureau of Labor Statistics, U .S . Department of Labor or the successor index
or federal agency. The C ity Manager shall publish a bulletin by November 1 of each year
announcing the adjusted rates, which shall take effect the following January 1. Such bulletin will
be made available to all Employers and to any other person who has filed with the City Manager
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a request to receive such notice, but lack of notice shall not excuse noncompliance with this
Section . The City Manager shall prescribe a poster advising Employees of their rights under this
article and distribute it to all Employers. An Employer shall post the notice in a prominent place
where it will be seen by Emp loyees . An Employer shall provide written notification of the rate
adjustments to each of its Employees and make the necessary payroll adjustments by January I
following the publication of the bulletin.
5.40.04 0 - H uman e w orkload.
A. Purpose. Hospitality employees who clean guest rooms are frequently assigned overly
burdensome room cleaning quotas and unexpected overtime, which undermines the public
interest in ensuring that room cleaners can perfonn their work in a manner that adequately
protects public health and interferes with their ability to meet family and personal obligations .
This provision assures that workers receive fair compensation when their workload assignments
exceed proscribed limits and prohibits hospitality employers from assigning employees overtime
work when their shifts exceed 10 hours in a day, except in emergency situations , without
obtaining workers' informed consent.
B. A large hospitality employer that owns, controls, and/or operates a hotel shall not require
a room cleaner to clean rooms amounting to more than 4 ,000 square feet of floorspace, or more
than the maximum floor space otherwise specified in this Section, in any one, eight-hour
workday unless the large hospitality employer pays the room cleaner twice his or her regular rate
of pay for all hours worked by the room cleaner during the workday . If a room cleaner works
fewer than eight hours in a workday, the maximum floor space shall be reduced on a prorated
basis . When a room cleaner during a workday is assigned to clean any combination of seven or
more checkout rooms or additional-bed rooms, the maximum floorspace to be cleaned shall be
reduced by 500 square feet for each such checkout or additional-bed room over six . The
limitations contained herein apply to any combination of spaces, including guest rooms and
suites , meeting rooms or hospitality rooms , and apply regardless of the furniture , equipment or
amenities in any rooms .
C. A large hospitality employer shall not suffer or permit a hospitality employee to work
more than 10 hours in any workday unless t he hospitality employee consents. Consents must be
written and signed by the hospitality employee or communicated electronically through an
account or number particular to the hospitality employee . No consent is valid unless the large
hospitality employer has advised the hospitality employee in writing not more than 30 days
preceding the consent that the hospitality employee may decline to work more than 10 hours in
any workday and that the hospitality emp loyer will not subject the hospitality employee to any
adverse action for declining. An assignment in excess of 10 hours in a workday due to an
emergency shall not violate this Section.
5.4 0 .0 5 0 - Sup p ort for A lte rnative Tran sportati o n
As to each hospitality employee, a large hospitality employer shall take one of the following
actions:
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(1) Offer to the hospitality employee each month a transit pass for the public transit
system requested by the hospitality employee or credit toward vanpool or ridesharing service
charges at least equal in value to the purchase price of the monthly transit pass, which shall at a
minimum be equal to the cost of a non-discounted adult Los Angeles Metro Pass enabling u s e at
no additional charge of all Metro services and which may be used by the hospitality employee
for the purpose of commuting to and from work for the large hospitality employer.
(2) Offer the hospitality employee transportation from the hospitality employee's
residence to and from the large hospitality employer's worksite at no cost to the hospitality
employee in a vanpool or bus, or similar multi-passenger vehicle operated by or for the large
hospitality employer.
5.40.060 Preservation of records.
A. Each large hospitality employer shall maintain for at least three (3) years:
(1) for each hospitality employee, a record of his or her name, hours worked, pay rate,
and proof of offer to provide a transit pass, credit toward vanpool or ridesharing service, or direct
transportation consistent with Section 5.40.050; and
(2) a record of the written consents it received from hospitality employees to work more
than ten hours during a shift consistent with Section 5.40.040(C).
B. Each large hospitality employer that owns, controls, and/or operates a hotel shall
additionally maintain for at least three (3) years for each room cleaner a record of his or her
name, pay rates received, and the rooms (or at the large hospitality employer's option, total
amount of square footage) each room cleaner has cleaned on each workday.
C . The large hospitality employer shall make the records specified in Subsections A and B
of this Section available to employees of the large hospitality employer or their representativ e s
for inspection and copying except the hospitality employees ' names (and any addresses and
social security numbers) shall be redacted unless the requester is a hospitality employee
requesting records concerning herself. Failure of the large hospitality employ er to provide a copy
of such records will result in a penalty of at least one hundred dollars ($100.00) per day up to one
thousand dollars ($1 ,000.00) per day, the amount to be set b y the court.
5.40.070 -No retaliation.
No person shall discharge, reduce in compensation, increase workload, impose fees or charges,
change duties or otherwise take adverse action against any hospitality employee for opposing
any practice proscribed by this Chapter, for participating in proceedings related to this Chapter,
for seeking to enforce his or her rights under this article b y any lawful means, or for otherwise
asserting rights under this Chapter. A person terminating or taking any other adverse action
against any hospitality employee who has engaged in any of the foregoing activities within one
year preceding the termination or other adverse action shall provide to the hospitality employee
at or before the time of the termination or other adverse action a detailed written statement of the
reason or reasons for the termination or other adverse action including all the facts substantiating
the reason or reasons and all facts known to the person that contradict the substantiating facts.
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5.40.080 -Waiver.
The provisions of this Chapter may not be waived by agreement between an individual
hospitality employee and a large hospitality employer. All of the provisions of Section 5 .40.030
or Section 5.40.040, or any part thereof, may be waived in a bona fide collective bargaining
agreement but only if the waiver is explicitly set forth in such agreement in clear and
unambiguous terms . Unilateral implementat ion of terms and conditions of employment by either
party to a collective bargaining relationship shall not constitute, or be permitted , as a waiver of
all or any part of the provisions of this Chapter.
5.40.090 -Enforcement.
A. A hospitality employee or representative of hospitality employees claiming violation of
this Chapter may bring an action in the Superior Court and shall be entitled to all remedies
available under the law or in equity appropriate to remedy any such violation , including but not
limited to injunctive relief or other equitable relief, including reinstatement, and compensatory
damages and other relief provided in this subsection. In addition to any other remedy to which a
hospitality employee is entitled under this Chapter, a large hospitality employer that violates
Section 5.40.030 shall be liable to each affected hospitality employee for statutory damages in
the amount of fifty dollars ($50) for each day on which a violation occurred; and a large
hospitality employer that violates Section 5.40 .040 shall be liable to each affected hospitality
employee for statutory damages in the amount of fifty dollars ($50) for each day on which a
violation occurred . In the event of a willful violation of Section 5.40.070, the amount of
damages attributable to lost income due to the violation shall be trebled. If a hospitality
employee is the prevailing party in any legal action taken pursuant to this Chapter, the court shall
award reasonable attorney's fees and costs as part of the costs recoverable.
B . Each hospitality employer shall give written notification to each current hospitality
employee, and to each new hospitality employee at time of hire, of his or her rights under this
Chapter. The notification shall be in each language spoken by more than ten (10) hospitality
employees .
C. A large hospitality employer that contracts with another person, including, without
limitation, another large hospitality employer, a temporary staffing agency, employee leasing
agency or professional employer organization, to obtain the services of hospitality employees
shall share all civil legal responsibility and civil liability for violations of this Chapter by that
person for hospitality employees performing work pursuant to the contract. For the purposes of
this subsection, the term "person" shall not include : (1) A bona fide nonprofit, community-based
organization that provides services to workers; (2) A bona fide labor organization or
apprenticeship program or hiring hall operated pursuant to a collective bargaining agreement.
5.40.100 -Severability.
If any provision or application of this Chapter is declared illegal, invalid or inoperative, in whole
or in part, by any court of competent jurisdiction, the remaining provisions and portions thereof
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shall remain in full force or effect. The courts are hereby authorized to reform the provisions of
this Chapter in order to preserve its maximum permissible effect.
5.40.110 -No Preemption of Higher Standards.
This Chapter does not preempt or prevent the establishment of superior standards or the
expansion of coverage by ordinance, resolution, contract, or any other action of the City of
Rancho Palos Verdes . This Chapter shall not be construed to limit a discharged hospitality
employee's right to bring a common law cause of action for wrongful termination.
5.40.120 -Regulations.
The City shall have authority to adopt rules and regulations consistent with and necessary for the
implementation of this Chapter. Such rules and regulations shall have the force and effect of
law , and may be relied upon by large hospitality employers, hospitality employ ees and other
parties to determine their rights and respons ibilities under this Chapter.
Section 2. Conflicting Measures.
Consistent with California Elections Code § 9221 , should another ordinance containing
provisions that conflict w ith this ordinance be adopted by voters at the same election as thi s
ordinance is adopted, the terms of the ordinance that receives the higher number of affinnative
votes shall control.
Section 3. Effective Date.
The proposed ordinance that is the subject of this initiative, once approved by the voters at
the Nov ember 6, 2018 election, or such other election as authorized by law, shall be deemed
adopted upon the date that the vote is declar ed by the City Council, and shall go into effect 10
day s after that date .
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