Los Angeles Municipal Code Art. 1 Contracts Requirements

Section

• 10.1 Right and Power of City to Make Contracts.

• 10.1.1 Departments’ Authorization of Contracts.

• 10.2 Formalities.

• 10.2.1 Contracts Required to Be in Writing.

• 10.3 Submission of Terms to Council.

• 10.4 Notices Inviting Bids or Requesting Proposals.

• 10.5 Limitation and Power to Make Contracts.

10.5.2 Authority of the Board of Water and Power Commissioners to Enter into Contracts for the Purchase of Local Renewable Energy and Related Interconnection Agreements

10.5.3 Authority of the Board of Water and Power Commissioners to Enter into Contracts for Natural Gas and Biogas and Financial Transactions for Natural Gas and the Delegation of Such Authority to the General Manager.

10.5.4 Authority of The General Manager of The Department of General Services to Negotiate And Execute Leases, Subleases, And Licenses of Specified Durations For The Placement of Telecommunications Equipment on City Property.

• 10.5.5 Emergency Waiver of Contracting Limitations.

• 10.7 “Prevailing Wage” Provisions.

• 10.7.1 Enforcement of Prevailing Wage Requirements.

10.8 Mandatory Provisions Pertaining to Non-discrimination in Employment in the Performance of City Contracts.

• 10.8.1 Definitions.

• 10.8.1.1 Summary of Thresholds.

• 10.8.2 All Contracts: Non-discrimination Clause.

• 10.8.2.1 Equal Benefits Ordinance.

• 10.8.3 Equal Employment Practices Provisions.

• 10.8.4 Affirmative Action Program Provisions.

• 10.8.5 Notice of Bid Announcement.

• 10.8.6 Exemptions.

• 10.8.7 Interpretation of “Disability” and “Medical Condition.”

10.9 Contracts Exempt from Mandatory Provisions Pertaining to Non-discrimination in Employment.

10.10 Child Support Assignment Orders.

10.11 Notice to Prospective Contractors and Suppliers Pertaining to Non-discrimination in Employment.

10.12 Power of City Attorney to Withhold Endorsement.

10.13 Mandatory Provisions Pertaining to Non-discrimination in Employment and Affirmative Action in Hiring Employees in the Performance of Work on Certain City Construction Contracts.

10.14 Provisions Pertaining to Listing of Subcontractors.

10.14.1 Sale of Animals from the Los Angeles City Zoo.

The City of Los Angeles, in addition to any other rights and powers now held by it, or that hereafter may be granted to it under the constitution or laws of the State, shall have the right and power, subject to the restrictions in the Charter to make contracts.

SECTION HISTORY

Based on Charter, Sec. 2(11)(k).

(a) Any action by any of the departments named in Sections 500 and 600 of the Charter approving a contract which obligates the City for a longer period of time than one year or which involves consideration reasonably valued in excess of $25,000 shall be taken by the head of the department by order or resolution. However, the Board of Commissioners of the Departments of Airports, Harbor, and Water and Power may each authorize its General Manager to contract on behalf of its department if the contract does not involve consideration reasonably valued in excess of $150,000. In determining the reasonable value of consideration under this article, the awarding authority shall aggregate the amount payable under the original action with the amounts payable under all renewals, extensions, and amendments.

(b) Notwithstanding the foregoing, the Board of Commissioners of the Department of Water and Power may delegate authority to its General Manager to enter into contracts which are not speculative for the purchase, sale or exchange of natural gas for a period not to exceed one year in duration and up to a limit of 350 MMCFD not to exceed twenty dollars ($20) per MMBtu per transaction. Such price cap shall not apply to contracts that are not speculative for the purchase of natural gas for a period not to exceed 15 days in duration and up to a limit of 100 MMCFD per transaction that are necessary to provide a reliable power supply to the retail customers of the Department of Water and Power at the least cost as determined by the General Manager. The General Manager or a designee shall provide notice (manual or electronic) of such purchase within two (2) business days to: the Associate Director, Infrastructure Services of the Office of the Mayor; the Chair of the Energy and Environment Committee of the City Council; the Chief Administrative Analyst of the City Administrative Officer; the Policy Advisor, Energy and Environment of the Chief Legislative Analyst; the Ratepayer Advocate of the Office of Public Accountability; the Commission Secretary of the Board of Water and Power Commissioners; or similar position of the aforementioned City representatives. Financial instruments and other option contracts shall not be included in this delegation of authority.

(c) Notwithstanding the provisions of Subsection (a) of this section, the Boards of the Los Angeles Departments of Harbor Commissioners and Airports Commissioners may authorize the respective General Managers of those Departments to enter into contracts on behalf of the Department that satisfy all of the following:

(1) The contract is not for personal services; and

(2) The contract does not obligate the City for a term of longer than three years including all extensions, renewals and amendments; and

(3) The contract does not involve consideration reasonably valued in excess of One Hundred Fifty Thousand Dollars ($150,000) annually.

The Harbor Department and the Department of Airports shall each submit a report quarterly to their respective Boards identifying all contracts, including the dollar value involved in each contract, authorized by the General Manager of the respective Department pursuant to the provisions of this subsection.

Three years after the last effective date of this subsection, the Harbor Department, and the Department of Airports shall each submit a report to the Mayor and the City Council evaluating the effects and benefits of the authority granted by the provisions of this subsection, and include a recommendation regarding whether to continue the provisions of this subsection.

(d) Notwithstanding the provisions of Subsection (a) of this section, the Board of Water and Power Commissioners may authorize its General Manager to enter into contracts on behalf of the Department that satisfy all of the following:

(1) The contract is not for personal services;

(2) The contract does not obligate the City for a term of longer than three years, including all extensions, renewals and amendments; and

(3) The contract does not involve consideration reasonably valued in excess of Five Million Dollars ($5,000,000) annually.

(e) The DWP will report quarterly to the Board and the City Council with respect to contracts pending, approved, or terminated by the General Manager or the Board. The report shall also set forth the status of any pending requests for the use of independent contractors pursuant to Charter Section 1022. The DWP will post on its website a listing of all contracts awarded by the DWP within 60 days of the end of each calendar year.

(f) During any time in which the Mayor has declared the existence of a local emergency or at any time a disaster or local emergency has been declared by the President of the United States or the Governor of California that includes or encompasses the City of Los Angeles, the City Council, by resolution approved by the Mayor, may delegate to the Chief Administrative Officers of any City Department, including the Proprietary Departments, the authority to contract for the procurement of goods and services that safeguard life, health, safety, and property, or continue City services. The resolution shall establish the consideration and maximum period of time for any contract authorized by the Chief Administrative Office and may specify any other limits applicable to the delegation. The resolution may apply to all City Departments or may specify which Departments are encompassed by the resolution. The resolution may specify the duration of the delegation but, in no event, shall the delegation extend beyond the period of the declared local disaster or emergency.

SECTION HISTORY

Added by Ord. No. 170,313, Eff. 3-3-95, Oper. 4-25-95.

Amended by: Ord. No. 173186, Eff. 5-22-00; Ord. No. 173,285, Eff. 6-26-00, Oper 7-1-00; Ord. No. 174,377, Eff. 1-26-02; Subsec. (c) added, Ord. No. 181,967, Eff. 1-22-12; Subsec. (c), Ord. No. 182,594, Eff. 6-29-13; Subsec. (c), Ord. No. 183,115, Eff. 7-24-14; Subsec. (c), Ord. No. 183,518, Eff. 6-9-15; Subsec. (b), Ord. No. 183,949, Eff. 12-5-15; Subsec. (c) amended and Subsecs. (d) and (e) added, Ord. No. 185,471, Eff. 4-23-18; Subsec. (f) added, Ord. No. 186,637, Eff. 5-29-20; Subsec. (a), Ord. No. 187,995, Eff. 11-6-23.

The City shall not be, and is not, bound by any contract unless the contract complies with the requirements of this section and all other applicable requirements of the Charter:

(a) Writing. Except in case of urgent necessity for the preservation of life, health, or property as provided in Section 371(e) of the Charter, the following contracts must be in writing:

(1) Contracts for the sale, purchase, or other transfer of any interest in real property;

(2) Contracts for the lease of real property for one year or longer;

(3) Contracts for the sale or purchase of goods with consideration exceeding $500 that, by the contract terms, cannot be performed within one year; and

(4) Contracts with consideration reasonably valued at more than $25,000, annually or in the aggregate.

(b) Approval. Any contract expending City funds, whether or not in writing, must be approved by the board, officer, or employee authorized to make the contract. The contract, if in writing, shall be signed on behalf of the City by

(1) The Mayor;

(2) The General Manager, board, officer, or employee authorized to enter into the contract. The approval shall include a certification attesting that the signatory has no personal, financial, beneficial, or familial interest in the contract; or

(3) In the case of a contract authorized by the City Council, the person authorized by the City Council to enter into the contract. The approval shall include a certification attesting that the signatory has no personal, financial, beneficial, or familial interest in the contract.

(c) Approval as to Form. Every contract must be approved by the City Attorney as to form, except the following:

(1) Contracts, including, but not limited to, those of the Departments of Airports, Harbor, and Water and Power, involving a sum of $100,000 or less for the purchase of materials, supplies, and equipment, and the rental, repair, or maintenance thereof;

(2) Contracts of the Departments of Airports, Water and Power, Recreation and Parks, Harbor, and Library involving a sum of $25,000 or less for professional or personal services;

(3) Contracts involving a sum of $125,000 or less for the payment of City membership dues for non-profit, inter-government, or government- support organizations as budgeted in the General City Purposes section of the City budget;

(4) Contracts involving a sum of $25,000 or less for the payment of subscriptions for newspapers, professional journals, online information, or research services; and

(5) Contracts not required to be made in writing or other manner as provided by ordinance that by their terms restrict the amount that is payable or can be paid to $25,000 or less in total consideration annually or in the aggregate.

SECTION HISTORY

Based on Charter, Sec. 385.

Amended by: Ord. No. 154,252, Eff. 9-11-80; Ord. No. 158,965, Eff. 6-30-84; In Entirety, Ord. No. 170,313, Eff. 3-3-95, Oper. 4-25-95; Ord. No. 173,186, Eff. 5-22-00; Ord. No. 173,285, Eff. 6-26-00, Oper 7-1-00; In Entirety, Ord. No. 185,268, Eff. 1-10-18; In Entirety, Ord. No. 187,995, Eff. 11-6-23.

Section 10.2 notwithstanding, the following contracts are required to be in writing:

(a) Contracts awarding funds from the Council District Community Service account, the Neighborhood and Community Improvement Services account, and the Cultural, Art, and City Events account of the General City Purposes Fund to nonprofit agencies and community service groups in amounts that are more than $25,000.

(b) Contracts awarding funds by neighborhood councils, as authorized under Section 22.817 of this Code, from the Department of Neighborhood Empowerment Fund to nonprofit corporations and public schools in amounts that are more than $5,000.

(c) Contracts awarding funds from the 53P - State AB 1290 City Fund account of the Special Revenue Fund to nonprofit agencies and community service groups in amounts that are more than $25,000 annually or in the aggregate.

(d) During the period of a national, state, or local emergency declared in accordance with federal, state, or local law, the City Council by resolution may, to the extent permitted by California Civil Code Section 1624 and California Commercial Code Section 2201, waive the writing requirement of Section 10.2 of this Code for amounts up to $100,000 for contracts awarding funds as provided in Subsections (a) and (c) that are necessary to address the declared emergency. The resolution may establish a termination date for the waiver that is prior to the termination of the declared emergency.

SECTION HISTORY

Added by Ord. No. 172,751, Eff. 9-17-99.

Amended by: In Entirety, Ord. No. 174,662, Eff. 8-11-02; Ord. No. 180,155, Eff. 9-26-08; Subsec. (a) amended and Subsec. (c) added, Ord. No. 182,719, Eff. 10-30-13; Subsec. (d) added, Ord. No. 186,588, Eff. 4-6-20; Subsec. (d), Ord. No. 187,554, Eff. 8-6-22; In Entirety, Ord. No. 187,995, Eff. 11-6-23.

Whenever any contract with the City of Los Angeles must be approved or authorized by the City Council, the head of the department, or other officer of the City, entering into such contract shall submit to the City Council for its consideration and recommendation the specifications for the work, services and materials to be furnished the City under such contract.

SECTION HISTORY

Based on Ord. No. 85,837.

Notices inviting bids or requests for proposals for the performance of any such contract shall not be given or published until a period of ten days has passed after the submission of said specifications to the City Council as provided in Section 10.3 hereof.

SECTION HISTORY

Based on Ord. No. 85,837.

Amended by: Title and Section, Ord. No. 173,186, Eff. 5-22-00.

(a) Except as otherwise provided in the Charter or this Code, no board, officer or employee of the City shall make any contract, obligating the City, or any department of the City, to make or receive payments of money or other valuable consideration for a period longer than three (3) years, unless such contract shall have been first approved by the Council. The Council shall have 60 days from the date the contract is transmitted by the board, officer or employee and received by the City Clerk, to approve it. The contract shall be deemed approved if the Council does not disapprove it within this period. If the Council disapproves the contract, the Council shall not modify the contract, but shall return it to the contracting authority for reconsideration and resubmission to the Council.

This section shall not apply to:

1. Contracts entered into with the United States government, or other governmental agencies; and

2. Contracts for purchases awarded by the Purchasing Agent of the City or jointly by the Purchasing Agent and one or more of the proprietary departments (Water and Power, Harbor, Airport and/or Library), for purchases of materials, supplies, equipment or equipment rental, or of repair and maintenance services therefor; and

3. Contracts awarded by the Board of Public Works for construction work or for design consultants, project or construction management services, or other personal services directly related to construction work for the City’s capital improvement projects, unless they are for a term of more than five (5) years as defined in Subsection (c) of this Section; and

4. Cooperative agreements where no financial or staff commitment is required.

5. Contracts entered into by the Board of Deferred Compensation Administration for investment management services related to the City of Los Angeles Deferred Compensation Plan, unless they are for a term of more than five years, as defined in Subsection (c) of this section.

6. Contracts entered into by the Personnel Department with service providers for the City’s Civilian Flex Benefits Program unless they are for a term of more than five years, as defined in Subsection (c) of this section.

7. Contracts entered into by the Board of Deferred Compensation Administration with service providers for the Deferred Compensation Plan unless they are for a term of more than five years, as defined in Subsection (c) of this section.

8. Contracts entered into during any time in which the Mayor has declared the existence of a local emergency or at any time a disaster or local emergency has been declared by the President of the United States or the Governor of California that includes or encompasses the City of Los Angeles, when the City Council, by resolution approved by the Mayor, authorizes the head of a City Department, or a Chief Administrative Officer specified in a resolution approved pursuant to Section 10.1.1(f), to approve a contract extension of up to one year for a contract that is scheduled to expire within one year from the earliest date upon which the emergency was declared. The resolution approved hereunder:

(i) Shall establish the consideration limitation for any contract extension approved by the Chief Administrative Officer;

(ii) May apply to all City Departments or may specify which Departments are encompassed by the resolution; and

(iii) May specify any other applicable limitations.

9. Contracts entered into by the Harbor Department, as Foreign Trade Zone (FTZ) No. 202 Grantee, with Developers or Operators of Foreign Trade Zone Sites in FTZ No. 202, pursuant to the federal regulations of the Foreign-Trade Zones Board, 15 C.F.R. Part 400.

(b) For the purpose of this section a contract obligating the City, or any department of the City, to make or receive payments or other valuable consideration for a period longer than three (3) years, shall include:

1. A contract which contains a provision, such as, but not limited to, an option clause, which allows for a cumulative period longer than three (3) years, said period calculated as of the date of execution of the contract; or

2. A contract replacing an expiring or expired contract or an amendment to a contract involving the same party or parties with no new competitive process having been utilized with a resulting cumulative period of longer than three (3) years, said period calculated as of the date of execution of the initial contract, and it is anticipated that the estimated or actual annual payments to or by the City under such contract shall exceed One Hundred Thousand Dollars ($100,000), adjusted annually in accordance with the Consumer Price Index.

(c) For the purposes of Charter Section 606 and any franchise, concession, permit, license, or lease, authorized under Sections 605 and 606, a term of more than five (5) years shall mean:

1. A contract which contains a provision, such as, but not limited to, an option clause, which allows for a cumulative period longer than five (5) years, said period calculated as of the date of execution of the contract;

2. A contract replacing an expiring or expired contract or an amendment to a contract involving the same party or parties with no new competitive process having been utilized with a resulting cumulative period of longer than five (5) years, said period calculated as of the date of execution of the initial contract, and it is anticipated that the estimated or actual annual payments to or by the City under such contract shall exceed One Hundred Thousand Dollars ($100,000), adjusted annually in accordance with the Consumer Price Index.

(d) Any franchise, concession, permit, license or lease proposed to be entered into by the Department of Airports, Harbor or Water and Power for a term of five years or less consistent with the definition in Subsection (c), above, shall not require approval by Council.

(e) The Department of Water and Power and the Department of Airports shall not enter into any contract to make or receive payments of money or other valuable consideration for a period longer than five years, unless such contract shall have been first approved by the City Council. This subsection shall not apply to contracts exempted by Subsection (a). Any contracts requiring City Council approval shall be subject to the timeline and process for City Council action set forth in Subsection (a). For the purposes of this Subsection (e), a term of longer than five years shall include:

1. A contract which contains a provision, such as, but not limited to, an option clause, which allows for a cumulative period longer than five years, said period calculated as of the date of execution of the contract;

2. A contract replacing an expiring or expired contract or an amendment to a contract involving the same party or parties with no new competitive process having been utilized with a resulting cumulative period of longer than five years, said period calculated as of the date of the execution of the initial contract, and it is anticipated that the estimated or actual annual payments to or by the City under such contract shall exceed $100,000, adjusted annually in accordance with the Consumer Price Index and an amount that is the same as Subsection (b)2.

(f) Any contract proposed to be entered into by the DWP for specialized construction equipment or software that is only offered by one vendor shall not require approval by Council unless it is for a term of longer than ten (10) years.

SECTION HISTORY

Based on Charter, Sec. 390.

Amended by: Ord. No. 170,313, Eff. 3-3-95, Oper. 4-25-95; First unnumbered para, Ord. No. 171,274, Eff. 10-20-96; Ord. No. 173,186, Eff. 5-22-00; Ord. No. 173,270, Eff. 6-25-00, Oper. 7-1-00; Subsec. (a)5. added, Ord. No. 179,162, Eff. 10-15-07; Subsec. (a)6. added, Ord. No. 183,853, Eff. 10-25-15; Subsec. (a)7. added, Ord. No. 184,129, Eff. 4-13-16; Subsecs. (e) and (f) added, Ord. No. 185,471, Eff. 4-23-18; Subsec. (a)8. added, Ord. No. 186,636, Eff. 5-29-20; Subsec. (a)9. added, Ord. No. 188,415, Eff. 12-29-24; Subsec. (e), Ord. No. 188,742, Eff. 11-3-25.

SECTION HISTORY

Added by Ord. No. 170,725, Eff. 11-16-95.

Repealed by Ord. No. 173,236, Eff. 6-19-00, Oper. 7-1-00.

(1) Pursuant to Charter Section 373, the Board of Water and Power Commissioners shall have authority to enter into contracts for the purchase of local renewable energy from renewable electric generating facilities (as defined below) and related interconnection agreements, subject to all the following limitations:

(a) Contracts for the purchase of local renewable energy and associated capacity rights and environmental attributes and related interconnection agreements shall be for a period not to exceed 25 years from the date of execution.

(b) The size of the local renewable energy purchase program authorized herein shall not exceed 450 megawatts cumulative rated generation capacity.

(c) The purchase price set forth in every contract shall not exceed an average of $250.00 per megawatt-hour.

(d) A renewable electric generation facility subject to such contracts shall meet all the following criteria:

(i) be located within the electric service territory of the Department of Water and Power;

(ii) have an effective capacity of not more than ten megawatts;

(iii) be interconnected and operate in parallel with the electrical distribution grid of the Department of Water and Power;

(iv) be located and interconnected to the electrical distribution grid in a manner that optimizes the deliverability of electricity generated at the facility to load centers;

(v) comply with all applicable laws and building standards, and utility interconnection requirements;

(vi) all energy generated by such renewable electric generation facility and associated environmental attributes (including Renewable Energy Certificates (RECs)) shall be eligible to be credited against the renewables portfolio standard implemented by the Department of Water and Power pursuant to Section 399.30 of the California Public Utilities Code or any successor; and

(vii) the renewable electric generation facility shall demonstrate site control for the term of the contract.

(e) No renewable electric generation facility subject to such contract may also participate in any net metering program.

(f) No renewable electric generation facility subject to such contract may receive or have received Los Angeles Department of Water and Power ratepayer-funded on-site generation incentives. Notwithstanding the preceding, a renewable electric generation facility receiving incentives under the Comprehensive Affordable Multifamily Retrofits Program is eligible to enter agreements pursuant to this Section. A renewable electric generation facility combined with an electric energy storage system shall not be prohibited from receiving incentives provided pursuant to a local agency, state, or federal program, including grant programs from such entities administered by the Los Angeles Department of Water and Power.

(g) All RECs and other credits, benefits, emissions reductions, offsets and allowances that are recognized under current or future laws, regulations or policies and associated with the electricity purchased and its displacement of conventional energy generation shall belong to the Department of Water and Power.

(h) Every contract shall contain the payment, interconnection, security, default, remedy and other terms and conditions, as authorized by the Board of Water and Power Commissioners.

(i) Prior to entering into contracts pursuant to this authority, the Board of Water and Power Commissioners by resolution shall establish the program under which the purchase of local renewable energy is made.

(j) Notwithstanding Section 10.5.2(d), contracts for the purchase of local renewable energy from facilities combined with an electric energy storage system may allow for the use of energy generated by such renewable electric generation facilities to serve customer load directly (i) during a grid outage when standard electric service from the Los Angeles Department of Water and Power is not available and (ii) to reduce customer energy consumption from the grid as determined by the Los Angeles Department of Water and Power. In no event shall any contracts for the purchase of local renewable energy permit a third- party sale of energy generated by such renewable electric generation facility, or any proxy for the sale of energy associated with the facility and energy storage system, to any person other than the Los Angeles Department of Water and Power.

(2) The Board of Water and Power Commissioners, under the authority of Charter Section 604(c), is authorized to delegate to the General Manager of the Department of Water and Power the authority to enter into contracts pursuant to this section.

SECTION HISTORY

Former Section Added by Ord. No. 170,725, Eff. 11-16-95.

Former Section Repealed by Ord. No. 173,236, Eff. 6-19-00, Oper. 7-1-00.

Added by Ord. No. 182,108, Eff. 5-17-12.

Amended by: Subsecs. (1)(b), (1)(c), and (1)(d)(ii), Ord. No. 186,467, Eff. 1-23-20; Subsec. (1)(f) amended and Subsec. (1)(j) added, Ord. No. 186,943, Eff. 4-29-21; Subsec. (1)(f), Ord. No. 188,748, Eff. 11-17-25.

(1) Notwithstanding any other ordinance, rule or law of the City of Los Angeles to the contrary, the Board of Water and Power Commissioners shall have the authority to enter into contracts for natural gas and biogas (including landfill gas, digester gas and like gases) (together, “Gas”) and financial transactions for natural gas subject to all the following limitations:

(a) This section shall not apply to contracts for the purchase of natural gas for a period of one year or less. Contracts for the purchase of natural gas for a period of one year or less shall comply with the terms and conditions of Section 10.1.1(b) of the Los Angeles Administrative Code.

(b) This section applies only to the purchase of Gas for delivery and to financial transactions relating to natural gas to be used by the Department of Water and Power in its production of electricity to serve its retail customers.

(c) Contracts for the purchase of natural gas entered into pursuant to this section shall be for a period of greater than one year, but not to exceed five years from the date of execution. Contracts for the purchase of biogas entered into pursuant to this Section shall be for a period not to exceed ten years from the date of execution.

(d) Financial transactions entered into pursuant to this section shall be for a period not to exceed ten years in duration from the date of execution.

(e) Financial transactions allowed under this section are described as follows:

(i) Variable to Fixed Price Swaps: Fixing the price of natural gas at a specified delivery point.

(ii) Delivery Point Swaps: Fixing the price of transporting natural gas from one delivery point to another delivery point.

(iii) Price Ceilings: Establishing a maximum price of natural gas by purchasing, but not selling, a ceiling or call option.

(iv) Price Collars: Buying a ceiling or call option to establish a maximum price of natural gas, and simultaneously selling a put option to establish a floor price for the same quantity of natural gas.

(f) The total purchase price for financial transactions in each fiscal year, including broker’s fees, if any, shall not exceed fifteen million dollars.

(g) Prior to entering into any contract or financial transaction, the Board of Water and Power Commissioners by resolution shall do the following:

(i) Establish a risk management program to reduce volatility of the net amount payable for Gas used for the production of electricity to serve the Department of Water and Power’s retail customers and to establish risk management controls to protect the Department of Water and Power’s assets; and

(ii) Establish an Energy Services Executive Risk Policy Committee. The Committee shall, at a minimum, be composed of five key management personnel including the functional business equivalent of the Chief Operating Officer, Chief Financial Officer, Assistant General Manager-Power Services, Director of Planning and Projects, and Director of Power Supply Operations; and

(iii) Approve a budget that sets forth the expenditure for and volume of Gas each fiscal year for the production of electricity for the Department of Water and Power’s retail customers.

(h) Every contract and financial transaction shall contain the payment, security, default, remedy and other terms and conditions, as authorized by the Board of Water and Power Commissioners.

(i) The purchase price for natural gas set forth in every contract and the delivered price of natural gas set forth in a financial transaction shall not exceed $10 per million British Thermal Units including broker’s fees, if any. The purchase price for biogas set forth in every contract shall not exceed $18 per million British Thermal Units including broker's fees, if any.

(j) The aggregate volume of Gas for delivery and natural gas subject to financial transactions shall not exceed seventy five percent (75%) of the volume of Gas as set forth in the budget established pursuant to Subsection (1), paragraph (g)(iii) and subject to the following limitations:

(i) The aggregate volume of Gas purchased for delivery shall not exceed fifty percent (50%) of the volume of Gas as set forth in the budget established pursuant to Subsection (1), paragraph (g)(iii).

(ii) The aggregate volume of natural gas subject to financial transactions shall not exceed seventy five percent (75%) of the volume of Gas as set forth in the budget established pursuant to Subsection (1), paragraph (g)(iii).

(2) The Board of Water and Power Commissioners under the authority of Charter Section 604(c) is authorized to delegate to the General Manager of the Department of Water and Power the authority to enter into contracts and financial transactions pursuant to this section with the following limitations:

(i) No contract or financial transaction shall be entered into until the Energy Services Executive Risk Policy Committee has met, reviewed, and approved a written recommendation to the General Manager; and

(ii) The General Manager’s delegated authority to enter into financial contracts shall not exceed a total purchase price of fifteen million dollars in any fiscal year with an aggregate not to exceed seventy-five million dollars over any five year period.

(3) The Department of Water and Power shall retain an outside auditor or a comparable third party approved by the Board of Water and Power Commissioners to annually audit and prepare a report relating to the activities authorized under this section. The audit report shall provide, but is not limited to, an assessment of the adequacy of risk management controls and compliance with the provisions set forth in this section. Within five days after receipt of the audit, the audit shall be distributed by personal delivery or first class mail to the Board of Water and Power Commissioners, the City Council, and the Mayor.

SECTION HISTORY

Former Section Added by Ord. No. 172,129, Eff. 9-4-98.

Former Section Repealed by Ord. No. 173,236, Eff. 6-19-00, Oper. 7-1-00.

Added by Ord. No. 174,755, Eff. 9-30-02.

Amended by: Subsecs. (1)(d) and (1)(i), Ord. No. 177,405, Eff. 4-17-06; Title and Subsecs. (1), (1)(b), (1)(c), (1)(i) and (1)(j), Ord. No. 181,931, Eff. 12-11-11.

Notwithstanding any other ordinance, rule, or law of the City of Los Angeles to the contrary, the General Manager of the Department of General Services shall have the authority to negotiate and execute leases, subleases, and licenses with private and public entities (“Telecommunications Providers”) for the purpose of placing towers, antennae, repeaters, and/or similar telecommunications equipment (together with requisite ancillary utilities, structures, and equipment) on City property under the jurisdiction of the Department of General Services without separate approval of each agreement by the City Council where all of the following conditions are met:

(a) There shall be the payment of a fair market fee or rent, as reasonably determined by the Department of General Services, to the City for the use of City property;

(b) The term shall be for a period of five (5) years, with, at the discretion of the General Manager, up to three (3) options to extend the term for additional five (5) years for each option. Under no circumstance may the cumulative length of the term exceed twenty (20) years;

(c) The Telecommunications Provider shall be required to install and operate all equipment in compliance with all city, state, and federal regulations regarding safety, power, seismic, aesthetic, and environmental issues and shall obtain all permits and licenses required by law;

(d) Each lease, sublease, or license shall be approved by the Municipal Facilities Committee of the City of Los Angeles and shall be approved as to form and legality by the City Attorney;

(e) Each lease, sublease, or license shall be approved by the City Council member in whose District the applicable site is located, prior to its approval by the Municipal Facilities Committee of the City of Los Angeles.

SECTION HISTORY

Added by Ord. No. 175,602, Eff. 12-7-03.

Except as required by state or federal law, during any time in which the Mayor has declared the existence of a local emergency or at any time a disaster or local emergency has been declared by the President of the United States or the Governor of California that includes or encompasses the City of Los Angeles, the City Council may, by resolution adopted by a two-thirds vote and approved by the Mayor, temporarily during the emergency, suspend any or all of the sections within Division 10 of the Los Angeles Administrative Code, beginning with Section 10.7, for contracts:

(a) That contain terms mandated by federal or state law or to which other governmental entities are parties;

(b) That provide for the continuation of City services; or

(c) That safeguard life, health, safety or property.

SECTION HISTORY

Added by Ord. No. 186,636, Eff. 5-29-20.

The provisions of that certain Act of the Legislature of the State of California entitled, “An act to provide for the payment of not less than the general prevailing rate of wages on public works, and not less than the general prevailing rate of wages for legal holiday and overtime work or public works, provided for the ascertainment of such general prevailing rate by the public body awarding the contract and its insertion in the contract and call for bids for the contract, providing for the keeping of records of the wages paid all workers engaged in public work and the inspection of such records by the proper public officials, providing for a forfeiture for each calendar day, or portion thereof, any worker is paid less than the said rate and for a stipulation to this effect in the contract, and providing other penalties for violation of the provisions thereof” (approved May 25, 1931, Statutes, 1931, Chapter 397), as amended or as hereafter shall be amended, are hereby accepted and made applicable to the City of Los Angeles, its departments, boards, officers, agents and employees notwithstanding the exemption of said City therefrom created by Section 5 of Article XI of the Constitution of the State of California with respect to municipal affairs.

SECTION HISTORY

Based on Charter Sec. 425.

Amended by: Ord. No. 154,252, Eff. 9-11-80; First unnumbered para. repealed, Ord. No. 158,965, Eff. 6-30-84.

In accordance with Division 22, Chapter 13, Article 10, of this Code, the Board of Public Works, Office of Contract Compliance is responsible for the enforcement of the prevailing wage requirements, as referenced in Section 10.7 of this Code, or as otherwise required, of all City contracts. In enforcing this requirement, the Office of Contract Compliance will monitor, inspect, and investigate to insure that the contractor is acting in compliance with the prevailing wage requirements of such City contracts. Each awarding authority shall cooperate to the fullest extent with the Office of Contract Compliance in their enforcement activities.

SECTION HISTORY

Added by Ord. No. 160,668, Eff. 2-21-86.

The City of Los Angeles, in letting and awarding contracts for the provision to it or on its behalf of goods or services of any kind or nature, intends to contract only with those contractors that comply with the non-discrimination and affirmative action provisions of the laws of the United States of America, the State of California and the City of Los Angeles. The City and each of its awarding authorities shall therefore require that any person, firm, corporation, partnership or combination thereof that contracts with the City for services, materials or supplies, shall not discriminate in any of its hiring or employment practices, shall comply with all provisions pertaining to non- discrimination in hiring and employment, and shall require Affirmative Action Programs in contracts in accordance with the provisions of this Code. The awarding authority and/or Office of Contract Compliance of the Department of Public Works shall monitor and inspect the activities of each contractor to determine that they are in compliance with the provisions of this chapter.

Although in accordance with Section 22.359 of this Code, the Board of Public Works, Office of Contract Compliance, is responsible for the administration of the City’s Contract Compliance Program, accomplishing the intent of the City in contract compliance and achieving non- discrimination in contractor employment shall be the continuing responsibility of each awarding authority. Each awarding authority shall use only the rules, regulations and forms provided by the Office of Contract Compliance to monitor, inspect or investigate contractor compliance with the provisions of this chapter.

Each awarding authority shall provide immediate notification upon award of each contract by that awarding authority to the Office of Contract Compliance. Each awarding authority shall call upon the Office of Contract Compliance to review, evaluate and recommend on any contractual dispute or issue of noncompliance under the provisions of this chapter. The Office of Contract Compliance shall be notified by each awarding authority of any imminent announcement to bid, to allow the Office of Contract Compliance the opportunity to participate with the awarding authority in the monitoring, review, evaluation, investigation, audit and enforcement of the provisions of this chapter in accordance with the rules, regulations and forms promulgated to implement the City's Contract Compliance, Equal Employment Practices Program.

SECTION HISTORY

Based on Ord. No. 132,533, Eff. 7-25-66.

Amended by: Ord. No. 147,030, Eff. 4-28-75; Ord. No. 173,186, Eff. 5-22-00; In Entirety, Ord. No. 184,292, Eff. 6-27-16.

Except for Section 10.8.2.1, the following definitions shall apply to the following terms used in this article:

“Awarding Authority” means any Board or Commission of the City of Los Angeles, or any authorized employee or officer of the City of Los Angeles, including the Purchasing Agent of the City of Los Angeles, who makes or enters into any contract or agreement for the provision of any goods or services of any kind or nature whatsoever for, or on behalf of, the City of Los Angeles.

“Contract” means any agreement, franchise, lease or concession, including agreements for any occasional professional or technical personal services, for the performance of any work or service, the provision of any materials or supplies, or the rendition of any service to the City of Los Angeles or to the public, which is let, awarded or entered into with, or on behalf of, the City of Los Angeles or any Awarding Authority thereof. Contracts where the provisions of this article would conflict with federal or state grant funded contracts, or conflict with the terms of the grant or subvention, as determined by the DAA, are exempt.

“Contractor” means any person, firm, corporation, partnership or any combination thereof, who enters into a contract with any Awarding Authority of the City of Los Angeles.

“Designated Administrative Agency (DAA)” means the Department of Public Works, Office of Contract Compliance created by Article X of Chapter 13 of Division 22 of the Los Angeles Administrative Code. That office is also known as the Department of Public Works, Bureau of Contract Administration.

“Domestic Partners” means, for purposes of this article, any two adults, of the same or different sex, who have registered with a governmental entity pursuant to state or local law authorizing this registration or with an internal registry maintained by an employer of at least one of the domestic partners.

“Employment Practices” means any solicitation of, or advertisement for, employees, employment, change in grade or work assignment, assignment or change in place or location of work, layoff, suspension or termination of employees, rate of pay or other form of compensation including vacation, sick and compensatory time, selection for training, including apprenticeship programs, any and all employee benefits and activities, promotion and upgrading, and any and all actions taken to discipline employees for infractions of work rules or employer requirements.

“Minority” is defined to mean “minority person” as the phrase is defined in Subsection (f) of Section 2000 of the California Public Contract Code, as amended from time to time.

“Subcontractor” means any person, firm or corporation or partnership, or any combination thereof, who enters into a contract with a Contractor to perform or provide a portion or part of any Contract with the City.

SECTION HISTORY

Amended by: Ord. No. 147,030, Eff. 4-28-75; “Affirmative Action,” Ord. No. 164,516, Eff. 4-13-89; “Affirmative Action,” Ord. No. 168,244, Eff. 10-18-92; “Domestic partners” added, Ord. No. 172,909, Eff. 1-9-00; first two definitions deleted, Ord. No. 173,186, Eff. 5-22-00; “Domestic partners,” Ord. No. 175,115, Eff. 4-12-03; In Entirety, Ord. No. 184,292, Eff. 6-27-16.

The following thresholds will be used to determine the non-discrimination and affirmative action requirements set forth in this chapter for each type of contract.

Non-discrimination Practices as outlined in Section 10.8.2 of this Code apply to all contracts.

Equal Employment Practices as outlined in Section 10.8.3 of this Code apply to all construction contracts of $1,000 or more and all non-construction contracts of $1,000 or more.

Affirmative Action Program as outlined in Sections 10.8.4 and 10.13 of this Code applies to all Construction Contracts of $25,000 or more and all non-Construction Contracts of $25,000 or more.

SECTION HISTORY

Added by Ord. No. 173,186, Eff. 5-22-00.

Amended by: In Entirety, Ord. No. 184,292, Eff. 6-27-16.

Notwithstanding any other provision of any ordinance of the City of Los Angeles to the contrary, every Contract which is let, awarded or entered into with or on behalf of the City of Los Angeles, shall contain by insertion therein a provision obligating the Contractor in the performance of such Contract not to discriminate in the Contractor’s Employment Practices against any employee or applicant for employment because of the applicant’s race, color, religion, national origin, ancestry, sex, sexual orientation, age, disability, marital status, domestic partner status or medical condition. All Contractors who enter into such Contracts with the City shall include a like provision in all subcontracts awarded for work to be performed under the Contract with the City. Failure of the Contractor to comply with this requirement or to obtain the compliance of its Subcontractors with such obligations shall subject the Contractor to the imposition of any and all sanctions allowed by law, including, but not limited to, termination of the Contractor’s Contract with the City. Nothing contained in this Contract shall be construed in any manner so as to require or permit any act which is prohibited by law.

SECTION HISTORY

Amended by: Ord. No. 147,030, Eff. 4-28-75; Ord. No. 164,516, Eff. 4-13-89; Ord. No. 168,244, Eff. 10-18-92; Title and Sec., Ord. No. 172,910, Eff. 1-9-00; Title and Section, Ord. No. 173,186, Eff. 5-22-00; In Entirety, Ord. No. 184,292, Eff. 6-27-16.

(a) Legislative Findings. The City awards many contracts to private firms to provide services to the public and to City government. Many City contractors and subcontractors perform services that affect the proprietary interests of City government in that their performance impacts the success of City operations. The City holds a proprietary interest in the work performed by many employees employed by City contractors and subcontractors. In a very real sense, the success or failure of City operations may turn on the success or failure of these enterprises, for the City has a genuine stake in how the public perceives the services rendered for them by these businesses.

Discrimination in the provision of employee benefits between employees with domestic partners and employees with spouses results in unequal pay for equal work. Los Angeles law prohibits entities doing business with the City from discriminating in employment practices based on marital status and/or sexual orientation. The City’s departments and contracting agents are required to place in all City contracts a provision that the company choosing to do business with the City agrees to comply with the City’s nondiscrimination laws.

It is the City’s intent, through the contracting practices outlined in this Ordinance, to assure that those companies wanting to do business with the City will equalize the total compensation between similarly situated employees with spouses and with domestic partners. The provisions of this Ordinance are designed to ensure that the City’s contractors will maintain a competitive advantage in recruiting and retaining capable employees, thereby improving the quality of the goods and services the City and its people receive, and ensuring protection of the City’s property.

(b) Definitions. For purposes of the Equal Benefits Ordinance only, the following shall apply.

(1) Awarding Authority means any Board or Commission of the City, or any employee or officer of the City, that is authorized to award or enter into any Contract, as defined in this ordinance, on behalf of the City, and shall include departments having control of their own funds and which adopt policies consonant with the provisions of the Equal Benefits Ordinance.

(2) Benefits means any plan, program or policy provided or offered by a Contractor to its employees as part of the employer’s total compensation package. This includes but is not limited to the following types of benefits: bereavement leave, family medical leave, health benefits, membership or membership discounts, moving expenses, pension and retirement benefits, and travel benefits.

(3) Cash Equivalent means the amount of money paid to an employee with a Domestic Partner (or spouse, if applicable) in lieu of providing Benefits to the employee’s Domestic Partner (or spouse, if applicable). The Cash Equivalent is equal to the direct expense to the employer of providing Benefits to an employee for the employee’s Domestic Partner (or spouse, if applicable) or the direct expense to the employer of providing Benefits for the dependents and family members of an employee with a Domestic Partner (or spouse, if applicable).

(4) City means the City of Los Angeles.

(5) Contract means an agreement the value of which exceeds $25,000. It includes agreements for work or services to or for the City; for public works or improvements to be performed; agreements for the purchase of goods, equipment, materials, or supplies; or grants to be provided, at the expense of the City or to be paid out of monies under the control of the City. The term also includes a Lease or License, as defined in the Equal Benefits Ordinance.

(6) Contractor means any person or persons, firm, partnership, corporation, joint venture, or any combination of these, or any governmental entity acting in its proprietary capacity, that enters into a Contract with any Awarding Authority of the City. The term does not include Subcontractors.

(7) Designated Administrative Agency (DAA) means the Department of Public Works, Bureau of Contract Administration.

(8) Domestic Partner means any two adults, of the same or different sex, who have registered as domestic partners with a governmental entity pursuant to state or local law authorizing this registration or with an internal registry maintained by the employer of at least one of the domestic partners.

(9) Equal Benefits Ordinance means Los Angeles Administrative Code Section 10.8.2.1, et seq., as amended from time to time.

(10) Equal Benefits means the equality of bene- fits between employees with spouses and employees with Domestic Partners, between spouses of employees and Domestic Partners of employees, and between dependents and family members of spouses and dependents and family members of Domestic Partners.

(11) Lease or License means any agreement allowing others to use property owned or controlled by the City, any agreement allowing others the use of City property in order to provide services to or for the City, such as for concession agreements, and any agreement allowing the City to use property owned or controlled by others.

(12) Subcontractor means any person or persons, firm, partnership, corporation, joint venture, or any combination of these, and any governmental entity, that assists the Contractor in performing or fulfilling the terms of the Contract. Subcontractors are not subject to the requirements of the Equal Benefits Ordinance unless they otherwise have a Contract directly with the City.

(c) Equal Benefits Requirements.

(1) No Awarding Authority of the City shall execute or amend any Contract with any Contractor that discriminates in the provision of Benefits between employees with spouses and employees with Domestic Partners, between spouses of employees and Domestic Partners of employees, and between dependents and family members of spouses and dependents and family members of Domestic Partners.

(2) A Contractor must permit access to, and upon request, must provide certified copies of all of its records pertaining to its Benefits policies and its employment policies and practices to the DAA, for the purpose of investigation or to ascertain compliance with the Equal Benefits Ordinance.

(3) A Contractor must post a copy of the following statement in conspicuous places at its place of business available to employees and applicants for employment: “During the performance of a Contract with the City of Los Angeles, the Contractor will provide equal benefits to its employees with spouses and its employees with domestic partners.” The posted statement must also include a City contact telephone number which will be provided each Contractor when the Contract is executed.

(4) A Contractor must not set up or use its contracting entity for the purpose of evading the requirements imposed by the Equal Benefits Ordinance.

(d) Other Options for Compliance. Provided that the Contractor does not discriminate in the provision of Benefits, a Contractor may also comply with the Equal Benefits Ordinance in the following ways:

(1) A Contractor may provide an employee with the Cash Equivalent only if the DAA determines that either:

a. The Contractor has made a reasonable, yet unsuccessful effort to provide Equal Benefits; or

b. Under the circumstances, it would be unreasonable to require the Contractor to provide Benefits to the Domestic Partner (or spouse, if applicable).

(2) Allow each employee to designate a legally domiciled member of the employee’s household as being eligible for spousal equivalent Benefits.

(3) Provide Benefits neither to employees’ spouses nor to employees’ Domestic Partners.

(e) Applicability.

(1) Unless otherwise exempt, a Contractor is subject to and shall comply with all applicable provisions of the Equal Benefits Ordinance.

(2) The requirements of the Equal Benefits Ordinance shall apply to a Contractor’s operations as follows:

a. A Contractor’s operations located within the City limits, regardless of whether there are employees at those locations performing work on the Contract.

b. A Contractor’s operations on real property located outside of the City limits if the property is owned by the City or the City has a right to occupy the property, and if the Contractor’s presence at or on that property is connected to a Contract with the City.

c. The Contractor’s employees located elsewhere in the United States but outside of the City limits if those employees are performing work on the City Contract.

(3) The requirements of the Equal Benefits Ordinance do not apply to collective bargaining agreements (“CBA”) in effect prior to January 1, 2000. The Contractor must agree to propose to its union that the requirements of the Equal Benefits Ordinance be incorporated into its CBA upon amendment, extension, or other modification of a CBA occurring after January 1, 2000.

(f) Mandatory Contract Provisions Pertaining to Equal Benefits. Unless otherwise exempted, every Contract shall contain language that obligates the Contractor to comply with the applicable provisions of the Equal Benefits Ordinance. The language shall include provisions for the following:

(1) During the performance of the Contract, the Contractor certifies and represents that the Contractor will comply with the Equal Benefits Ordinance.

(2) The failure of the Contractor to comply with the Equal Benefits Ordinance will be deemed to be a material breach of the Contract by the Awarding Authority.

(3) If the Contractor fails to comply with the Equal Benefits Ordinance the Awarding Authority may cancel, terminate or suspend the Contract, in whole or in part, and all monies due or to become due under the Contract may be retained by the City. The City may also pursue any and all other remedies at law or in equity for any breach.

(4) Failure to comply with the Equal Benefits Ordinance may be used as evidence against the Contractor in actions taken pursuant to the provisions of Los Angeles Administrative Code Section 10.40, et seq., Contractor Responsibility Ordinance.

(5) If the DAA determines that a Contractor has set up or used its Contracting entity for the purpose of evading the intent of the Equal Benefits Ordinance, the Awarding Authority may terminate the Contract on behalf of the City. Violation of this provision may be used as evidence against the Contractor in actions taken pursuant to the provisions of Los Angeles Administrative Code Section 10.40, et seq., Contractor Responsibility Ordinance.

(g) Administration.

(1) The DAA is responsible for the enforcement of the Equal Benefits Ordinance for all City Contracts. Each Awarding Authority shall cooperate to the fullest extent with the DAA in its enforcement activities.

(2) In enforcing the requirements of the Equal Benefits Ordinance, the DAA may monitor, inspect, and investigate to ensure that the Contractor is acting in compliance with the Equal Benefits Ordinance. Contractor’s failure to cooperate with the DAA may result in a determination by the DAA that the Contractor is not in compliance with the Equal Benefits Ordinance, which may subject the Contractor to enforcement measures set forth in Section 10.8.2.1(h).

(3) The DAA shall promulgate rules and regulations and forms for the implementation of the Equal Benefits Ordinance. No other rules, regulations or forms may be used by an Awarding Authority of the City to accomplish this contract compliance program.

(h) Enforcement.

(1) If the Contractor fails to comply with the Equal Benefits Ordinance:

a. The failure to comply may be deemed to be a material breach of the Contract by the Awarding Authority; or

b. The Awarding Authority may cancel, terminate or suspend, in whole or in part, the contract; or

c. Monies due or to become due under the Contract may be retained by the City until compliance is achieved;

d. The City may also pursue any and all other remedies at law or in equity for any breach.

e. The City may use failure to comply with the Equal Benefits Ordinance as evidence against the Contractor in actions taken pursuant to the provisions of Los Angeles Administrative Code Section 10.40, et seq., Contractor Responsibility Ordinance.

(i) Non-applicability, Exceptions and Waivers.

(1) Upon request of the Awarding Authority, the DAA may waive compliance with the Equal Benefits Ordinance under the following circumstances:

a. The Contract is for the use of City property, and there is only one prospective Contractor willing to enter into the Contract; or

b. The Contract is for needed goods, services, construction of a public work or improvement, or interest in or right to use real property that is available only from a single prospective Contractor, and that prospective Contractor is otherwise qualified and acceptable to the City; or

c. The Contract is necessary to respond to an emergency that endangers the public health or safety, and no entity which complies with the requirements of the Equal Benefits Ordinance capable of responding to the emergency is immediately available; or

d. The City Attorney certifies in writing that the Contract involves specialized litigation requirements such that it would be in the best interests of the City to waive the requirements of the Equal Benefits Ordinance; or

e. The Contract is (i) with a public entity; (ii) for goods, services, construction of a public work or improvement, or interest in or right to use real property; and (iii) that is either not available from another source, or is necessary to serve a substantial public interest. A Contract for interest in or the right to use real property shall not be considered as not being available from another source unless there is no other site of comparable quality or accessibility available from another source; or

f. The requirements of the Equal Benefits Ordinance will violate or are inconsistent with the terms or conditions of a grant, subvention or agreement with a public agency or the instructions of an authorized representative of the agency with respect to the grant, subvention or agreement, provided that the Awarding Authority has made a good faith attempt to change the terms or conditions of the grant, subvention or agreement to authorize application of the Equal Benefits Ordinance; or

g. The Contract is for goods, a service or a project that is essential to the City or City residents and there are no qualified responsive bidders or prospective Contractors who could be certified as being in compliance with the requirements of the Equal Benefits Ordinance; or

h. The Contract involves bulk purchasing arrangements through City, federal, state or regional entities that actually reduce the City’s purchasing costs and would be in the best interests of the City.

(2) The Equal Benefits Ordinance does not apply to contracts which involve:

a. The investment of trust monies, bond proceeds or agreements relating to the management of these funds, indentures, security enhancement agreements (including, but not limited to, liquidity agreements, letters of credit, bond insurance) for City tax-exempt and taxable financings, deposits of City’s surplus funds in financial institutions, the investment of City monies in competitively bid investment agreements, the investment of City monies in securities permitted under the California State Government Code and/or the City’s investment policy, investment agreements, repurchase agreements, City monies invested in U.S. government securities or pre-existing investment agreements;

b. Contracts involving City monies in which the Treasurer or the City Administrative Officer finds that either:

(i) No person, entity or financial institution doing business in the City, which is in compliance with the Equal Benefits Ordinance, is capable of performing the desired transaction(s); or

(ii) The City will incur a financial loss or forego a financial benefit which in the opinion of the Treasurer or City Administrative Officer would violate the Treasurer’s or City Administrative Officer’s fiduciary duties.

(3) The Equal Benefits Ordinance does not apply to contracts for gifts to the City.

(4) Nothing in this Subsection shall limit the right of the City to waive the provisions of the Equal Benefits Ordinance.

(5) The provisions of this Subsection shall apply to the Equal Benefits Ordinance only. The Equal Benefits Ordinance is not subject to the exemptions provided in Section 10.9 of this Code.

(j) Consistency with Federal or State Law. The provisions of the Equal Benefits Ordinance do not apply where the application of these provisions would violate or be inconsistent with the laws, rules or regulations federal or state law, or where the application would violate or be in- consistent with the terms or conditions of a grant or contract with the United States of America, the State of California, or the instruction of an authorized representative of any of these agencies with respect to any grant or contract.

(k) Severability. If any provision of the Equal Benefits Ordinance is declared legally invalid by any court of competent jurisdiction, the remaining provisions shall remain in full force and effect.

(l) Timing of Application.

(1) The requirements of the Equal Benefits Ordinance shall not apply to Contracts executed or amended prior to January 1, 2000, or to bid packages advertised and made available to the public, or any bids received by the City, prior to January 1, 2000, unless and until those Contracts are amended after January 1, 2000 and would otherwise be subject to the Equal Benefits Ordinance.

(2) The requirements of the Equal Benefits Ordinance shall apply to competitively bid Contracts that are amended after April 1, 2003, and to competitively bid Contracts that result from bid packages advertised and made available to the public after May 1, 2003.

(3) Unless otherwise exempt, the Equal Benefits Ordinance applies to any agreement executed or amended after January 1, 2000, that meets the definition of a Contract as defined within Subsection 10.8.2.1(b).

SECTION HISTORY

Added by Ord. No. 172,908, Eff. 1-9-00.

Amended by: Ord. No. 173,054, Eff. 2-27-00; Ord. No. 173,058, Eff. 3-4-00; Ord. No. 173,142, Eff. 3-30-00; Ord. No. 173,285, Eff. 6-26-00, Oper. 7-1-00; In Entirety, Ord. No. 175,115, Eff. 4-12-03; Subsec. (b)(7), Ord. No. 176,155, Eff. 9-22-04; Subsecs. (b)(5) and (g)(2), Ord. No. 184,294, Eff. 6-27-16.

Every non-construction and construction Contract with, or on behalf of, the City of Los Angeles for which the consideration is $1,000 or more shall contain the following provisions, which shall be designated as the EQUAL EMPLOYMENT PRACTICES provision of such contract:

A. During the performance of this Contract, the Contractor agrees and represents that it will provide Equal Employment Practices and the Contractor and each Subcontractor hereunder will ensure that in their Employment Practices persons are employed and employees are treated equally and without regard to, or because of, race, color, religion, national origin, ancestry, sex, sexual orientation, age, disability, marital status or medical condition.

1. This provision applies to work or service performed or materials manufactured or assembled in the United States.

2. Nothing in this section shall require or prohibit the establishment of new classifications of employees in any given craft, work or service category.

3. The Contractor agrees to post a copy of Paragraph A., hereof, in conspicuous places at its place of business available to employees and applicants for employment.

B. The Contractor will, in all solicitations or advertisements for employees placed by, or on behalf of, the Contractor, state that all qualified applicants will receive consideration for employment without regard to their race, color, religion, national origin, ancestry, sex, sexual orientation, age, disability, marital status or medical condition.

C. At the request of the Awarding Authority or the DAA, the Contractor shall certify in the specified format that the Contractor has not discriminated in the performance of City Contracts against any employee or applicant for employment on the basis or because of race, color, religion, national origin, ancestry, sex, sexual orientation, age, disability, marital status or medical condition.

D. The Contractor shall permit access to, and may be required to provide certified copies of, all of the Contractor’s records pertaining to employment and to employment practices by the awarding authority or the DAA for the purpose of investigation to ascertain compliance with the Equal Employment Practices provisions of City Contracts. Upon request, the Contractor shall provide evidence that the Contractor has or will comply therewith.

E. The failure of any Contractor to comply with the Equal Employment Practices provisions of this contract may be deemed to be a material breach of City Contracts. The failure shall only be established upon a finding to that effect by the Awarding Authority, on the basis of its own investigation or that of the DAA. No such finding shall be made or penalties assessed except upon a full and fair hearing after notice and an opportunity to be heard has been given to the Contractor.

F. Upon a finding duly made that the Contractor has failed to comply with the Equal Employment Practices provisions of a City Contract, the Contract may be forthwith cancelled, terminated or suspended, in whole or in part, by the Awarding Authority, and all monies due or to become due hereunder may be forwarded to, and retained by, the City of Los Angeles. In addition thereto, the failure to comply may be the basis for a determination by the Awarding Authority or the DAA that the said Contractor is a non-responsible bidder or proposer pursuant to the provisions of Section 10.40 of this Code. In the event of such a determination, the Contractor shall be disqualified from being awarded a Contract with the City of Los Angeles for a period of two years, or until the Contractor shall establish and carry out a program in conformance with the provisions hereof.

G. Notwithstanding any other provision of this contract, the City of Los Angeles shall have any and all other remedies at law or in equity for any breach hereof.

H. The Board of Public Works shall promulgate rules and regulations through the DAA, and provide necessary forms and required language to the Awarding Authorities to be included in City Request for Bids or Request for Proposal packages or in supplier registration requirements for the implementation of the Equal Employment Practices provisions of this Contract, and such rules and regulations and forms shall, so far as practicable, be similar to those adopted in applicable Federal Executive orders. No other rules, regulations or forms may be used by an Awarding Authority of the City to accomplish the contract compliance program.

I. Nothing contained in this Contract shall be construed in any manner so as to require or permit any act which is prohibited by law.

J. By affixing its signature on a Contract that is subject to this article, the Contractor shall agree to adhere to the Equal Employment Practices specified herein during the performance or conduct of City Contracts.

K. Equal Employment Practices shall, without limitation as to the subject or nature of employment activity, be concerned with employment practices, including, but not limited to:

1. hiring practices;

2. apprenticeships where approved programs are functioning and other on-the-job training for non-apprenticeable occupations;

3. training and promotional opportunities; and

4. reasonable accommodations for persons with disabilities.

L. All Contractors subject to the provisions of this section shall include a similar provision in all subcontracts awarded for work to be performed under the Contract with the City, and shall impose the same obligations including, but not limited to, filing and reporting obligations, on the Subcontractors as are applicable to the Contractor. Subcontracts shall follow the same thresholds specified in Section 10.8.1.1. Failure of the Contractor to comply with this requirement or to obtain the compliance of its Subcontractors with all such obligations shall subject the Contractor to the imposition of any and all sanctions allowed by law, including, but not limited to, termination of the Contractor’s Contract with the City.

SECTION HISTORY

Amended by: Ord. No. 147,030, Eff. 4-28-75; Subsecs. A., B., C., Ord. No. 164,516, Eff. 4-13-89; Subsec. C., Ord. No. 168,244, Eff. 10-18-92; Ord. No. 173,186, Eff. 5-22-00; Subsec. F., Ord. No. 173,285, Eff. 6-26-00, Oper. 7-1-00; In Entirety, Ord. No. 184,292, Eff. 6-27-16.

Every non-construction and construction Contract with, or on behalf of, the City of Los Angeles for which the consideration is $25,000 or more shall contain the following provisions which shall be designated as the AFFIRMATIVE ACTION PROGRAM provisions of such Contract:

A. During the performance of a City Contract, the Contractor certifies and represents that the Contractor and each Subcontractor hereunder will adhere to an Affirmative Action Program to ensure that in its employment practices, persons are employed and employees are treated equally and without regard to or because of race, color, religion, national origin, ancestry, sex, sexual orientation, age, disability, marital status, domestic partner status or medical condition.

1. This section applies to work or services performed or materials manufactured or assembled in the United States.

2. Nothing in this section shall require or prohibit the establishment of new classifications of employees in any given craft, work or service category.

3. The Contractor shall post a copy of Paragraph A., hereof, in conspicuous places at its place of business available to employees and applicants for employment.

B. The Contractor shall, in all solicitations or advertisements for employees placed, by or on behalf of, the Contractor, state that all qualified applicants will receive consideration for employment without regard to their race, color, religion, national origin, ancestry, sex, sexual orientation, age, disability, marital status, domestic partner status or medical condition.

C. At the request of the Awarding Authority or the DAA, the Contractor shall certify on an electronic or hard copy form to be supplied, that the Contractor has not discriminated in the performance of City Contracts against any employee or applicant for employment on the basis or because of race, color, religion, national origin, ancestry, sex, sexual orientation, age, disability, marital status, domestic partner status or medical condition.

D. The Contractor shall permit access to, and may be required to provide certified copies of, all of its records pertaining to employment and to its employment practices by the Awarding Authority or the DAA for the purpose of investigation to ascertain compliance with the Affirmative Action Program provisions of City Contracts and, upon request, to provide evidence that it has or will comply therewith.

E. The failure of any Contractor to comply with the Affirmative Action Program provisions of City Contracts may be deemed to be a material breach of a City Contract. The failure shall only be established upon a finding to that effect by the Awarding Authority, on the basis of its own investigation or that of the DAA. No finding shall be made except upon a full and fair hearing after notice and an opportunity to be heard has been given to the Contractor.

F. Upon a finding duly made that the Contractor has breached the Affirmative Action Program provisions of a City Contract, the Contract may be forthwith cancelled, terminated or suspended, in whole or in part, by the Awarding Authority, and all monies due or to become due hereunder may be forwarded to and retained by the City of Los Angeles. In addition thereto, the breach may be the basis for a determination by the Awarding Authority or the Board of Public Works that the Contractor is a non- responsible bidder or proposer pursuant to the provisions of Section 10.40 of this Code. In the event of such determination, the Contractor shall be disqualified from being awarded a contract with the City of Los Angeles for a period of two years, or until the Contractor shall establish and carry out a program in conformance with the provisions hereof.

G. In the event of a finding by the Fair Employment and Housing Commission of the State of California, or the Board of Public Works of the City of Los Angeles, or any court of competent jurisdiction, that the Contractor has been guilty of a willful violation of the California Fair Employment and Housing Act, or the Affirmative Action Program provisions of a City Contract, there may be deducted from the amount payable to the Contractor by the City of Los Angeles under the contract, a penalty of ten dollars for each person for each calendar day on which the person was discriminated against in violation of the provisions of a City Contract.

H. Notwithstanding any other provisions of a City Contract, the City of Los Angeles shall have any and all other remedies at law or in equity for any breach hereof.

I. The Public Works Board of Commissioners shall promulgate rules and regulations through the DAA and provide to the Awarding Authorities electronic and hard copy forms for the implementation of the Affirmative Action Program provisions of City contracts, and rules and regulations and forms shall, so far as practicable, be similar to those adopted in applicable Federal Executive Orders. No other rules, regulations or forms may be used by an Awarding Authority of the City to accomplish this contract compliance program.

J. Nothing contained in City Contracts shall be construed in any manner so as to require or permit any act which is prohibited by law.

K. By affixing its signature to a Contract that is subject to this article, the Contractor shall agree to adhere to the provisions in this article for the duration of the Contract. The Awarding Authority may also require Contractors and suppliers to take part in a pre-registration, pre-bid, pre-proposal, or pre-award conference in order to develop, improve or implement a qualifying Affirmative Action Program.

1. The Contractor certifies and agrees to immediately implement good faith effort measures to recruit and employ minority, women and other potential employees in a non- discriminatory manner including, but not limited to, the following actions as appropriate and available to the Contractor’s field of work. The Contractor shall:

(a) Recruit and make efforts to obtain employees through:

(i) Advertising employment opportunities in minority and other community news media or other publications.

(ii) Notifying minority, women and other community organizations of employment opportunities.

(iii) Maintaining contact with schools with diverse populations of students to notify them of employment opportunities.

(iv) Encouraging existing employees, including minorities and women, to refer their friends and relatives.

(v) Promoting after school and vacation employment opportunities for minority, women and other youth.

(vi) Validating all job specifications, selection requirements, tests, etc.

(vii) Maintaining a file of the names and addresses of each worker referred to the Contractor and what action was taken concerning the worker.

(viii) Notifying the appropriate Awarding Authority and the DAA in writing when a union, with whom the Contractor has a collective bargaining agreement, has failed to refer a minority, woman or other worker.

(b) Continually evaluate personnel practices to assure that hiring, upgrading, promotions, transfers, demotions and layoffs are made in a non-discriminatory manner so as to achieve and maintain a diverse work force.

(c) Utilize training programs and assist minority, women and other employees in locating, qualifying for and engaging in the training programs to enhance their skills and advancement.

(d) Secure cooperation or compliance from the labor referral agency to the Contractor’s contractual Affirmative Action Program obligations.

(e) Establish a person at the management level of the Contractor to be the Equal Employment Practices officer. Such individual shall have the authority to disseminate and enforce the Contractor’s Equal Employment and Affirmative Action Program policies.

(f) Maintain records as are necessary to determine compliance with Equal Employment Practices and Affirmative Action Program obligations and make the records available to City, State and Federal authorities upon request.

(g) Establish written company policies, rules and procedures which shall be encompassed in a company-wide Affirmative Action Program for all its operations and Contracts. The policies shall be provided to all employees, Subcontractors, vendors, unions and all others with whom the Contractor may become involved in fulfilling any of its Contracts.

(h) Document its good faith efforts to correct any deficiencies when problems are experienced by the Contractor in complying with its obligations pursuant to this article. The Contractor shall state:

(i) What steps were taken, how and on what date.

(ii) To whom those efforts were directed.

(iii) The responses received, from whom and when.

(iv) What other steps were taken or will be taken to comply and when.

(v) Why the Contractor has been or will be unable to comply.

2. Every contract of $25,000 or more which may provide construction, demolition, renovation, conservation or major maintenance of any kind shall also comply with the requirements of Section 10.13 of the Los Angeles Administrative Code.

L. The Affirmative Action Program required to be submitted hereunder and the pre-registration, pre-bid, pre-proposal or pre-award conference which may be required by the Awarding Authority shall, without limitation as to the subject or nature of employment activity, be concerned with such employment practices as:

1. Apprenticeship where approved programs are functioning, and other on-the-job training for non-apprenticeable occupations;

• 2. Classroom preparation for the job when not apprenticeable;
• 3. Pre-apprenticeship education and preparation;
• 4. Upgrading training and opportunities;

5. Encouraging the use of Contractors, Subcontractors and suppliers of all racial and ethnic groups; provided, however, that any contract subject to this ordinance shall require the Contractor, Subcontractor or supplier to provide not less than the prevailing wage, working conditions and practices generally observed in private industries in the Contractor’s, Subcontractor’s or supplier’s geographical area for such work;

6. The entry of qualified women, minority and all other journey-level persons into the industry; and

7. The provision of needed supplies or job conditions to permit persons with disabilities to be employed, and minimize the impact of any disability.

M. Any adjustments which may be made in the Contractor’s work force to achieve the requirements of the City’s Affirmative Action Program in purchasing and construction shall be accomplished by either an increase in the size of the work force or replacement of those employees who leave the work force by reason of resignation, retirement or death and not by termination, layoff, demotion or change in grade.

N. This ordinance shall not confer upon the City of Los Angeles or any Agency, Board or Commission thereof any power not otherwise provided by law to determine the legality of any existing collective bargaining agreement and shall have application only to discriminatory employment practices by Contractors engaged in the performance of City Contracts.

O. All Contractors subject to the provisions of this article shall include a similar provision in all subcontracts awarded for work to be performed under the Contract with the City and shall impose the same obligations including, but not limited to, filing and reporting obligations, on the Subcontractors as are applicable to the Contractor. Failure of the Contractor to comply with this requirement or to obtain the compliance of its Subcontractors with all such obligations shall subject the Contractor to the imposition of any and all sanctions allowed by law, including, but not limited to, termination of the Contractor’s Contract with the City.

SECTION HISTORY

Amended by Ord. No. 147,030, Eff. 4-28-75; Subsecs. A., B., C., Ord. No. 164,516, Eff. 4-13-89; Subsecs. B. and C., Ord. No. 168,244, Eff. 10-18-92; Title and Section, Ord. No. 173,186, Eff. 5-22-00; Subsec. F., Ord. No. 173,285, Eff. 6-26-00, Oper. 7-1-00; In Entirety, Ord. No. 184,292, Eff. 6-27-16.

Each awarding authority shall be responsible for giving notice to all prospective bidders of the requirements of this section and when requested by the Office of Contract Compliance, to give the Office of Contract Compliance notice of each contract proposed to be put to public bid or otherwise awarded and if requested shall provide a copy of the bid package to the Office of Contract Compliance for approval. The Office of Contract Compliance shall have a maximum of fifteen (15) calendar days after receipt of notice of imminent announcement for bid to approve the bid package and to advise the awarding authority of its participation in the contract. Lack of response by the Office of Contract Compliance shall not remove any responsibility of the awarding authority to comply with the requirements of this division.

SECTION HISTORY

Amended by Ord. No. 147,030, Eff. 4-28-75.

Exempt from application of Section 10.8 through 10.8.4 of this article are cases of urgent necessity, as provided in Section 371 of the Charter of the City of Los Angeles, and as provided in Section 10.9 (a), (b), and (d) of this article.

SECTION HISTORY

Added by Ord. No. 147,030, Eff. 4-28-75.

Amended by: Ord. No. 173,285, Eff. 6-26-00, Oper. 7-1-00.

The terms “disability” and “medical condition” as used in this chapter shall be interpreted and construed as they are by federal and State law.

SECTION HISTORY

Added by Ord. No. 168,244, Eff. 10-18-92.

Amended by: Title and Section, Ord. No. 173,186, Eff. 5-22-00.

A contract otherwise subject to the provisions of Section 10.8 hereof for the performance of work or the furnishing of materials, supplies, equipment, or of repair and maintenance service, is exempt from said section if it meets any of the following conditions:

(a) The party to the contract, other than the City, is a governmental entity such as the United States, the State of California, a county, city or public agency of such entities, or a public or quasi-public corporation located therein and declared by law to have such public status.

(b) The contract is made in whole or in part incident to a proceeding authorized and being conducted pursuant to or otherwise controlled by the laws of the United States, the State of California, or other authority paramount to the City; or

(c) (None)

(d) The Council, board, officer or employee authorized to contract on behalf of the City exempts either such contract or the class of contracts in which such contract is included by a determination in writing that special circumstances in the City’s interest so require and provided that such circumstances are set forth in said writing which shall be affixed to and made a part of the contract concerned. The awarding authority shall provide a copy of this writing to the Office of Contract Compliance. Any exemption to be provided under this subparagraph shall be included as part of the announcement inviting bids and in accordance with Section 10.11 of this Code.

SECTION HISTORY

Based on Ord. No. 132,553, Eff. 7-25-66.

Amended by: Ord. No. 139,315, Eff. 11-29-69; Ord. No. 147,030 repeals Subsec. (c) and amends Subsec. (d), Eff. 4-28-75.

a. Definitions.

1. Awarding Authority means a subordinate or component entity or person of the City (such as a City department or Board of Commissioners) that has the authority to enter into a contract or agreement for the provision of goods or services on behalf of the City of Los Angeles.

2. Contract means any agreement, franchise, lease or concession including an agreement for any occasional professional or technical personal services, the performance of any work or service, the provision of any materials or supplies, or the rendering of any service to the City of Los Angeles or to the public which is let, awarded or entered into with, or on behalf of, the City of Los Angeles or any awarding authority thereof.

3. Contractor means any person, firm, corporation, partnership or any combination thereof which submits a bid or proposal or enters into a contract with any awarding authority of the City of Los Angeles.

4. Subcontractor means any person, firm, corporation, partnership or any combination thereof who enters into a contract with a contractor to perform or provide a portion of any contract with the City.

5. Principal Owner means any person who owns an interest of 10 percent or more in a contractor or subcontractor as defined herein.

b. Mandatory Contract Provisions. Every contract that is let, awarded or entered into with or on behalf of the City of Los Angeles shall contain a provision obligating the contractor or subcontractor to fully comply with all applicable State and Federal employment reporting requirements for the contractor or subcontractor’s employees. The contractor or subcontractor will also be required to certify that the principal owner(s) thereof are in compliance with any Wage and Earnings Assignment Orders and Notices of Assignment applicable to them personally, that the contractor or subcontractor will fully comply with all lawfully served Wage and Earnings Assignment Orders and Notices of Assignments in accordance with California Family Code §§5230 et seq. and that the contractor or subcontractor will maintain such compliance throughout the term of the contract.

Failure of a contractor or subcontractor to comply with all applicable reporting requirements or to implement lawfully served Wage and Earnings Assignments or Notices of Assignment or failure of the principal owner(s) to comply with any Wage and Earnings Assignments or Notices of Assignment applicable to them personally shall constitute a default under the contract. Failure of the contractor or subcontractor or principal owner thereof to cure the default within 90 days of notice of such default by the City shall subject the contract to termination.

c. Notice to Bidders. Each awarding authority shall be responsible for giving notice of the provisions of this ordinance to those who bid on, or submit proposals for, prospective contracts with the City.

d. Current Contractor Compliance. Within 30 days of the operative date of this ordinance, the City, through its operating departments, shall serve upon existing contractors a written request that they and their subcontractors (if any) comply with all applicable State and Federal employment reporting requirements for the contractor and subcontractor’s employees, that they certify that the principal owner(s) of the contractor and any subcontractor are in compliance with any Wage and Earnings Assignment Orders and Notices of Assignment applicable to them personally, that the contractor and subcontractor will fully comply with all lawfully served Wage and Earnings Assignment Orders and Notices of Assignments in accordance with California Family Code §§ 5230 et seq. and that the contractor and subcontractor will maintain such compliance throughout the term of the contract.

e. City’s Compliance with California Family Code. The City shall maintain its compliance with the provisions of California Family Code §§5230 et seq. and all other applicable law regarding its obligations as an employer to implement lawfully served Wage and Earnings Assignments and Notices of Assignment.

f. Report of Employees’ Names to District Attorney.

1. The City shall maintain its current practice of assisting the District Attorney’s support enforcement activities by annually reporting to the Los Angeles County District Attorney the names of all of its employees and retirees so that the District Attorney may identify those employees and retirees subject to Wage and Earnings Assignment Orders and Notices of Assignment and may establish court orders for support, where appropriate. Should the District Attorney so request it, the City will provide such information on a more frequent basis.

2. All applicants for employment with the City of Los Angeles will be asked to acknowledge their responsibility to comply with any court-ordered support obligations and will be advised of the City’s practice of assisting the District Attorney as described in the provisions of Subsection f.1., above.

SECTION HISTORY

Added by Ord. No. 172,401, Eff.2-13-99.

Subject to the foregoing sections, the Council, board, officer or employee authorized to contract on behalf of the City shall give notice to prospective contractors and suppliers of the provisions of this article in the following manner:

A. In contractual proceedings where a notice inviting bids or proposals for the work services, information or property required to be furnished or supplied to the City or to be sold to the City is published either in accordance with Sections 371 or 372 of the Charter or is otherwise published, such notice shall specify that the provisions of Section 10.8 through 10.8.7 hereof applicable to any such notice will be part of any contract awarded by the City pursuant to such notice;

B. In contractual proceedings where a notice is not published as provided in Subsection A, the contractor or contractors will be advised at the outset of negotiations that the provisions of Subsection 10.8 through 10.8.7 hereof will be a part of any contract entered into by the City as a result of such negotiations;

C. As part of the Supplier Registration Process, suppliers will be advised that the provisions of Subsection 10.8 through 10.8.7 hereof will be part of any contract entered into by the City.

SECTION HISTORY

Based on Ord. No. 132,533, Eff. 7-25-66.

Amended by: Ord. No. 139,315, Eff. 11-29-69; Ord. No. 147,030, Eff. 4-28-75; Title and Section, Ord. No. 173,186, Eff. 5-22-00; Ord. No. 173,285, Eff. 6-26-00, Oper. 7-1-00.

In any instance in which approval of a contract by the City Attorney is required by the Charter, by this Code, or by other applicable law, the City Attorney is hereby authorized to withhold endorsement of approval as to form or as to form and legality if the contract does not comply with the provisions of this article, of the Charter, or of other applicable law.

SECTION HISTORY

Based on Ord. No. 132,533, Eff. 7-25-66.

Amended by: Ord. No. 133,065, Eff. 10-29-66; Ord. No. 173,186, Eff. 5-22-00.

A. Notwithstanding any other provision of this division to the contrary, every construction Contract involving an expenditure of $25,000 or more of City funds, except in cases of urgent necessity, as provided in Section 371 of the Charter of the City of Los Angeles and except as provided in Section 10.9 of this Code, shall contain these provisions as part of the Contract. By affixing its signature on a Contract, the Contractor shall agree to adhere to these provisions for the duration of the Contract.

B. Anticipated Utilization. At the request of the Awarding Authority or DAA, the Contractor must set forth anticipated minority, women, and all other staffing utilization by the Contractor and all Subcontractors on each project constructed by the City using those trades within the area of jurisdiction of the Los Angeles Building and Construction Trades Council within the City of Los Angeles in each work class and at all levels in terms of staff hours. The anticipated levels of minority, women and other staffing utilization shall be the levels at which each of those groups are represented in the relevant work force in the Greater Los Angeles Area as determined by the U.S. Bureau of the Census and made available by the DAA. Attainment of the anticipated levels of utilization may only be used as an indicia of whether the Contractor has complied with the requirements of this section and has applied its Affirmative Action Program in good faith and in a non-discriminatory manner. Failure to attain the anticipated levels of utilization shall not, by itself, disqualify the Contractor for award of a Contract or subject the Contractor to any sanctions or penalties.

In no event may a Contractor utilize the requirements of this section in such a manner as to cause or result in discrimination against any person on account of race, color, religion, national origin, ancestry, sex, sexual orientation, age, disability, marital status, domestic partner status or medical condition.

C. The Contractor shall make a good faith effort with respect to apprenticeship and training programs to:

1. Recruit and refer minority, women and other employees to such programs;

2. Establish training programs within the company and/or its affiliates that will prepare minority, women and other employees for advancement opportunities; and

3. Abide by the requirements of the Labor Code of the State of California with respect to the provision of apprenticeship job opportunities.

D. No contract shall be executed until the appropriate Awarding Authority of the City of Los Angeles, and the Federal funding agency (if Federal funds are involved), has determined in writing that the Contractor has executed and filed with the Awarding Authority and the DAA any federal or state requirements.

E. It shall be no excuse that the union with which the Contractor has a collective bargaining agreement providing for referral, exclusive or otherwise, failed to refer minority, women or other employees.

F. Subject to this subsection, the Contractor shall execute further forms and documentation at times and as may be required by the appropriate Awarding Authority.

G. Where the Contractor has failed to comply with the requirements contained in this section, any and all sanctions allowed by law may be imposed upon the Contractor.

H. The DAA shall be responsible for administering the City’s Contract Compliance Program in the manner described in Sections 22.359 through 22.359.2 of this Code.

I. All Contractors subject to the provisions of this section shall include a similar provision in all subcontracts awarded for work to be performed under the Contract with the City and shall impose the same obligations, including, but not limited to, filing and reporting obligations, on the Subcontractors as are applicable to the Contractor. Failure of the Contractor to comply with this requirement or to obtain the compliance of its Subcontractors with all such obligations shall subject the Contractor to the imposition of any and all sanctions allowed by law including, but not limited to, termination of the Contractor’s Contract with the City.

SECTION HISTORY

Added by Ord. No. 143,429, Eff. 6-29-72.

Amended by: Second unnumbered para., No. 2, Ord. No. 164,516, Eff. 4-13-89; Ord. No. 173,186, Eff. 5-22-00; Ord. No. 173,285, Eff. 6-26-00, Oper. 7-1-00; In Entirety, Ord. No. 184,292, Eff. 6-27-16.

1. Definitions. For the purposes of this section the definitions of “contractor” and “subcontractor” contained in Section 10.8.1 of this article shall be applicable.

2. Listing of Subcontractors. Each officer, department, board or commission awarding contracts for the construction of any public work or improvement within the City of Los Angeles shall provide in the bid documents

prepared for such work or improvement that every person making a bid or offering to perform the work shall state therein:

(a) The name and address of each subcontractor who will perform work or labor or render service to the bidder in or about the construction of the work or improvement in an amount in excess of one-half of one percent (1/2%) of the prime contractor’s total bid or $10,000.00, whichever is greater.

(b) That portion of the work which will be done by each subcontractor.

The prime contractor shall list only the subcontractor for each such portion as is defined by the prime contractor in its bid. Failure of prime contractor to specify a subcontractor for any portion of the work shall constitute agreement by said contractor that it is fully qualified to perform that work and shall perform with its own forces.

3. Substitution. No prime contractor whose bid is accepted may substitute any person as subcontractor in place of the subcontractor listed in the original bid or offer except in the following instances:

(a) When the subcontractor listed in the bid after a reasonable opportunity to do so fails or refuses to execute a written contract when such contract, based upon the general terms, conditions, plans and specifications for the project involved or the terms of such subcontractor’s written bid, is presented to it by the prime contractor.

(b) When the listed subcontractor becomes bankrupt or insolvent.

(c) When the listed subcontractor fails or refuses to perform its subcontract.

(d) When the listed subcontractor fails or refuses to meet the bond requirements of the prime contractor as set forth in Subsection 4 of this section.

(e) When the contractor demonstrates to the satisfaction of the awarding authority that the subcontractor was listed by inadvertent clerical error.

(f) When the awarding authority determines that work being performed by the listed subcontractor is substantially unsatisfactory and not in substantial accordance with the plans and specifications, or the listed subcontractor is substantially delaying or disrupting the progress of the work.

(g) When the listed subcontractor fails to submit an Affirmative Action Plan acceptable to the awarding authority.

The prime contractor, as a condition of asserting a claim of inadvertent clerical error in a listing of a subcontractor, shall within two working days after the time of the prime bid opening by the awarding authority given written notice to the awarding authority and copies of such notice to both the subcontractor it claims to have listed in error and the intended subcontractor who had bid to the prime contractor prior to bid opening. Any listed subcontractor who has been notified by the prime contractor in accordance with the provisions of this section as to an inadvertent clerical error shall be allowed six working days from the time of the prime bid opening within which to submit to the awarding authority and to the prime contractor written objection to the prime contractor’s claim of inadvertent clerical error.

In all other cases, the prime contractor must make a request in writing to the awarding authority for the substitution of subcontractors, giving reasons therefor. The awarding authority shall mail a written notice to the listed subcontractor giving reasons for the proposed substitution. The listed subcontractor shall have five working days from the date of such notice within which to file with the awarding authority written objections to the substitution.

Failure to file written objections pursuant to the provisions of this section within the times specified herein shall constitute a waiver of objection to the substitution by the listed subcontractor and, where the ground for substitution is an inadvertent clerical error, an agreement by the listed subcontractor that an inadvertent clerical error was made.

If written objections are filed, the awarding authority shall give five days’ notice to the prime contractor and to the listed subcontractor of a hearing by the awarding authority on the prime contractor’s request for substitution. The determination by the awarding authority shall be final.

4. Subcontractor’s Performance Bonds. In the event any subcontractor submitting a bid to a prime contractor does not, upon the request of the prime contractor and at the expense of the prime contractor at the established charge or premium therefor, furnish to such prime contractor a bond or bonds issued by an admitted surety wherein the prime contractor shall be named the obligee, guaranteeing prompt and faithful performance of such subcontract and the payment of all claims for labor and materials furnished or used in and about the work to be performed and performed under such subcontract, the prime contractor may reject such bid and make a substitution of another subcontractor subject to the provisions of Subsection 3 of this section. Such bond or bonds may be required at the expense of the subcontractor only if the prime contractor in its written or published request for sub-bids (1) specifies that the expense of such bond or bonds shall be borne by the subcontractor and (2) clearly specifies the amount and requirements of such bond or bonds.

5. Assignment. No contractor shall permit any subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed on the original bid without the consent of the awarding authority or its duly authorized officer.

6. Penalties. A contractor violating any provisions of this section shall be deemed in violation of the contract and the City may at its discretion:

(a) Cancel the contract.

(b) Assess the contractor a penalty of not more than 10% of the amount of the subcontract involved.

7. Notwithstanding the requirements of this section, Council may, by ordinance, waive the requirements in Subsections 2. and 5. for specific projects involving the competitive sealed proposal process under Los Angeles City Charter Section 371(b) and provide in the ordinance alternative requirements.

In any proceeding under this section the prime contractor shall be entitled to a public hearing and to five days’ notice of the time and place thereof.

SECTION HISTORY

Added by Ord. No. 150,595, Eff. 4-2-78.

Amended by: Subsec. 2.(a), Subsec. 3.(f) deleted, Subsecs. (g) and (h) relettered Subsecs. (f) and (g) respectively, Ord. No. 150,786, Eff. 4-24-78; Para. 2, Ord. No. 170,882, Eff. 3-1-96; Subsec. 7. added, Ord. No. 184,936, Eff. 7-11-17.

(a) Animals from the Los Angeles City Zoo shall be sold only in compliance with the requirements of Section 53.80 of the Municipal Code of the City of Los Angeles. Every contract providing for the sale of animals from the Zoo shall include, as a material condition thereof, a requirement that such animals are not to be used for any Inhumane Purpose, as that term is defined in Section 53.80 of said Municipal Code. The contract shall incorporate therein by reference a written statement of the purpose or purposes for which the animals are being purchased, the actual user or recipient of the animals, and a certification that the animals are not being purchased for any Inhumane Purpose. Such statement and certification shall be provided by the purchaser as part of the purchaser’s offer to purchase. In addition, the contract for sale of such animals shall require that the purchaser provided a written certification, by the stated actual user or recipient of such animals, that the animals have been received and that they will be used in accordance with the purposes stated in the corresponding offer to purchase.

(b) No sale of animals from the Los Angeles City Zoo shall be made to any animal dealer or broker before the Zoo Director has established and implemented a procedure whereby the use or delivery of the animals to be sold to any such animal dealer or broker, as represented in the dealer’s or broker’s written offer to purchase, can be verified with the stated actual user or recipient of such animals.

(c) The Director of the Los Angeles City Zoo shall create and maintain a list of animal breeders, brokers and dealers recognized by the Director as being legitimately engaged in those activities. No breeder, broker or dealer of animals shall be placed on, or allowed to remain on, said list who is found to have purchased, sold or used any animals for any Inhumane Purpose, as that term is defined in Section 53.80 of said Municipal Code, within the preceding five years.

(d) Each breeder, broker or dealer of animals found by the Zoo Director to have purchased, sold or used any animals for any Inhumane Purposes within the preceding five years shall be deemed to be a non-responsible party for purposes of doing business with the City Zoo, and no contract for the transportation of animals or for any other services shall be entered into with that party during the five year period of time subsequent to such purchase, sale or use.

SECTION HISTORY

Added by Ord. No. 165,764, Eff. 5-19-90.