REPORT TO COUNCIL
SUBJECT
Title
Report on a Written Petition (Council Policy 030) Submitted by Councilmember Anthony Becker Regarding Letter Sent by Mayor Gillmor to Governor Newsom Regarding Department of Industrial Relations Investigation on Prevailing Wage Claims on the Related Santa Clara Project
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
On September 21, 2022, the City Clerk’s Office received a Written Petition from Councilmember Anthony Becker requesting an item be placed on a future Council agenda to discuss Mayor Lisa Gillmor’s request concerning the “Related Company and prevailing wages issue as well as a report on the claim from the Union of Painters made with the Department of Industrial Relations and that [the] discussion happen at the Council meeting of October 4th, 2022.” (Attachment 1)
On September 27, 2022, the Council approved the petition to be heard by the full Council. This report is in response to the 030 Council Petition.
DISCUSSION
On September 15, 2020, the State of California Department of Industrial Relations (DIR) advised Related Santa Clara and the City of Santa Clara that it had received a request from District Council 16 of the International Union of Painters and Allied Trades (Union) to determine if the Related Santa Clara (RSC) development was a public works project and therefore required to pay prevailing wages for all aspects of construction. Since that time, DIR has made four comprehensive information requests to RSC and the City, with the most recent request in June 2022. To date, a determination has not been made by DIR and the investigation remains open.
The status and issues related to the investigation will be discussed with Council in closed session. This report focuses on the March 4, 2022 letter sent to Governor Newsom by Mayor Gillmor (Attachment 2).
For context, since 2013 the City and RSC have been working together on a public-private partnership development on the City-owned former Santa Clara Golf and Tennis site. In June 2016, the Council approved a series of actions on the Related Santa Clara project authorizing both the public-private partnership transaction as well as the entitlements necessary for development of the project.
On March 4, 2022, Mayor Gillmor sent a letter to Governor Newsom expressing concern that “the length of time the DIR is taking to conduct its investigation and render a decision on this project could delay this project and set a major precedent for public-private partnerships in California…I respectfully request your thoughtful consideration of this matter and look forward to your response.”
As background, the City Manager’s office and the City Attorney’s office reviewed the content of the Mayor’s letter for accuracy of the statements made in the letter prior to its release and determined that the statements on behalf of the City were factually correct.
Section 704.3 of the City Charter provides the Mayor with the authority to inform the community on matters of policy or program which the Mayor believes “on his/her account” is necessary for the benefit of the community. The request to the Governor for assistance to secure a response from DIR to allow the RSC development to proceed without further delay is consistent with the policy actions and record of the full Council and the executed agreements with RSC on the project.
COORDINATION
This report was coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
There is no staff recommendation.
Staff
Reviewed by: Ruth Mizobe Shikada, Office of the City Manager
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Councilmember Becker’s September 21, 2022 030 Petition
2. March 4, 2022 Letter from Mayor Gillmor