Chapter 5.74
PROTECTION OF REVENUE

Sections:

5.74.005    Findings and purposes.

5.74.010    Labor activity pledges required.

5.74.020    Definitions.

5.74.005 Findings and purposes.

A. When the city has a financial or proprietary interest in a project that includes hospitality operations such as hotels, including restaurants, bars, clubs, and food and beverage operations that are located within the hotel or hotel complex, and when the revenues generated by such operations are necessary to defray the public costs incurred in the construction or maintenance of such projects, or when such revenues are necessary to fund lease, rental or license payments to the city, it is essential to the public fiscal welfare that the revenue stream to so defray or fund not be interrupted or in any manner be affected by labor disputes.

B. The city has found that the effective way to avoid such disputes is to require employers and others receiving public funding or revenue to be signatory to a collective bargaining agreement or a labor peace agreement with unions representing or seeking to represent employees who will staff the hospitality operations described hereinabove. A collective bargaining agreement generally prohibits a union and all employees covered by such an agreement from engaging in picketing, work stoppages, boycotts or other economic interference with the business of the employers, for the duration of the collective bargaining agreement, and provides instead for arbitration of all employment disputes arising under the collective bargaining agreement. A labor peace agreement allows a union to organize a property through a card check with the employer taking a neutral stance toward the card check process in exchange for which the union agrees to forbear picketing, work stoppages, boycotts or other economic interference with the business of the employers for the duration of the labor peace agreement and to provide instead for arbitration only for any disputes relating to the interpretation of the labor peace agreement.

C. It is the purpose of this chapter to require a collective bargaining or labor peace agreement, as described above, to ensure continuous provision of employee services and consequent assurance that the city will continue to receive agreed upon revenue to defray financial obligations and to fund public services. (Ord. 933 (Exh. A § 1), 2004)

5.74.010 Labor activity pledges required.

A. All contractors shall be or become signatory to a collective bargaining agreement or a labor peace agreement with any labor organization representing or seeking to represent hospitality workers employed in contractor’s hospitality operations in a capital project or under a revenue producing contract as a condition precedent to its contract or subcontract with city.

B. Each collective bargaining agreement shall include a provision prohibiting the labor organization and its members from engaging in any picketing, work stoppages, boycotts or any other economic interference with the hospitality operations of contractor for the duration of the collective bargaining agreement. Each collective bargaining agreement must provide that, during the term of the agreement, all disputes relating to the collective bargaining agreement shall be submitted to final and binding arbitration. A labor peace agreement shall include a provision requiring the union to forbear picketing, work stoppages, boycotts or other economic interference with the business of the employers for the duration of the labor peace agreement. This agreement shall also provide for arbitration only for any disputes relating to the interpretation of the labor peace agreement.

C. All contractors shall require that any work under contract or contracts with city to be done by contractors’ contractors, subcontractors, tenants or subtenants, licensees or sublicensees shall be done under labor peace agreements or collective bargaining agreements containing the same provisions as specified above in this section.

D. A contractor shall be relieved of the obligations of this section with respect to a labor organization if the labor organization places conditions upon its strike and/or labor activity pledge that the council finds, after notice and hearing, to be arbitrary or capricious, or for other good and sufficient reasons. (Ord. 933 (Exh. A § 2), 2004; Ord. 922 § 2, 2004)

5.74.020 Definitions.

The following words and phrases, whenever used in this section, shall be construed as defined in this section unless from the context a different meaning is intended or unless a different meaning is specifically defined and more particularly directed to the use of such words or phrases:

“Capital project” means a project financed by debt or by other funds and which meets all of the following:

1. Is an undertaking to construct, repair, renovate, improve, equip, furnish or acquire any:

a. Building, structure, facility or other physical public improvement;

b. Land or rights in land; or

c. Furnishings, machinery, apparatus or equipment for a building, structure, facility or other physical public improvement.

2. Has an estimated useful life in excess of five years.

3. Has an estimated financial cost in excess of one hundred thousand dollars. This definition does not apply to original equipment or furnishings for previously authorized public improvement projects.

“Collective bargaining agreement” means a collective bargaining agreement entered into between the person contracting or subcontracting to provide services and a labor organization lawfully serving as the exclusive collective bargaining representative for the employees who provide or will provide services pursuant to such a contract.

“Contract” means (1) any contract, lease or license from city to use any city property for hospitality operations; (2) any contract, lease or license pursuant to which city is entitled to receive as rents, royalties, payments in connection with financing provided by or through city, or other income, a percentage of the revenues of an enterprise of which hospitality operations are any part, including, but not limited to, a contract for all or part of a capital project or revenue producing contract; or (3) any subcontract, sublease, sublicense, management agreement or other transfer or assignment or any right, title or interest received from city pursuant to any of the foregoing contracts, leases or licenses.

“Contract,” under 29 U.S.C. 185(a), means a contract to which 29 U.S.C. 185(a) applies, as that provision has been interpreted by the courts of competent jurisdiction.

“Contractor” means any person party to a contract.

“Hospitality operations” means hotels or motels, providing lodging and other guest accommodations, including restaurants, bars, clubs, cafeterias and food and beverage operations located within the hotel or hotel complex, but does not include sport stadium operations.

“Hospitality workers” means all full-time or part-time employees in a hospitality operation, except supervisors, managers, guards, administrative, sales, marketing, accounting, human resources, concierge, and front desk personnel, as well as any other categories of employees which the union and employer agree shall be exempted from the bargaining unit.

“Labor peace agreement” means a contract which allows a union to organize a property through a card check and with the employer taking a neutral stance toward the card check process in exchange for which the union agrees to forbear picketing, work stoppages, boycotts or other economic interference with the business of the employers for the duration of the labor peace agreement and to provide instead for arbitration only for any disputes relating to the interpretation of the labor peace agreement.

“Revenue producing contracts” means all contracts that produce revenue for city or involve payment of money or monies to city other than taxes. (Ord. 933 (Exh. A § 2), 2004; Ord. 922 § 2, 2004)