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Recommendation to request City Attorney to draft an ordinance that would require the City receive documentation from a hotelier that can include, but is not limited to, a labor peace agreement as a condition of approval for any new lease, lease amendment or lease assignment for all hotels located on City-owned property.
DISCUSSION
In recent years, throughout the state of California, there has been an increase in
labor disputes in the hotel industry. Often times cities are caught in the middle,
loosing essential revenue by clients who refuse to cross the picket line and turn
to neighboring cities to accommodate their needs. Such moves are extremely
disruptive and can potentially tarnish a city's reputation, thereby impacting future
considerations as a host city.
The San Francisco Chronicle published an article last summer that indicated that
the City of San Francisco lost $1.8 million in projected revenue when the
Organization of American Historians decided not to cross a hotel labor dispute
picket line. The City of Los Angeles faced similar losses earlier this year when a
number of events had to be relocated due to similar strikes at high profile L.A.
hotels.
The City of Long Beach currently has 4 hotels that are situated on City-owned
property, for which the City has a contracted lease agreement with each
respective entity. The City of Long Beach has an overwhelming interest in
reducing the risk that such labor disputes have a negative impact on our City.
Comparable cities in the State of California, including Los Angeles, have enacted
labor peace ordinances that are designed to protect its revenue by ensuring that
any future labor disputes will not adversely impact its sources of revenue.
TIMING CONSIDERATIONS
[Timing Considerations]
FISCAL IMPACT
[Fiscal Impact]
SUGGESTED ACTION
Approve recommendation.
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Respectfully Submitted,
[Respectfully Submitted,]