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Council directs review of long-term contracts, including living-wage pass-throughs
Summary
The council approved a motion to study and tighten processes for long-term contract extensions, asking departments to report whether living-wage and similar compliance costs were absorbed by contractors or passed through to the city.
The Los Angeles City Council voted to advance a motion directing a review of city contracting and extension practices intended to strengthen oversight of long-term contracts and ensure taxpayer value, the council said.
Councilmember Jackie Chick presented the motion to require departments to review whether contract extensions and renewals properly account for compliance with local labor rules such as the Living Wage and Equal Benefits ordinances, and whether departments are re‑bidding contracts rather than automatically extending them when the contractor seeks pass-through of compliance costs. Chick said the motion aims to protect taxpayer dollars and preserve fairness for city employees and bidders.
Councilmember Janice Goldberg urged staff to examine whether departments have been passing living-wage costs dollar-for-dollar to the city rather than requiring contractors to absorb them, and to bring contract extensions to bid when appropriate. Councilmember Joel Wachs and others cautioned that some incumbent contractors perform well and that re-bidding should be balanced against continuity and service quality.
The council approved the motion by roll call (11 ayes). Departments were instructed to report on contract-extension practices and the extent to which compliance costs are absorbed or passed through, and to return the item to the committee with recommendations.
