HomeMy WebLinkAboutCC AG PKT 2014-04-28 #M AGENDA STAFF REPORT
OF0
DATE: April 28, 2014
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Sean P. Crumby P.E., Director of Public Works
SUBJECT: PREVAILING WAGE REQUIREMENT OF SB 7
SUMMARY OF REQUEST:
That the City Council introduce for First Reading Ordinance No. 1640, which
adds Chapter 9.75 to the Sea[ Beach Municipal Code regarding Prevailing
Wages.
BACKGROUND AND ANALYSIS:
On October 13, 2013, the State of California passed Senate Bill 7 ("SB 7")
thereby adding Labor Code 1782 to state law, which requires charter cities to
require payment of prevailing wages as a condition to receiving or using state
funding or financial assistance for construction projects. The attached ordinance
brings the Seal Beach Municipal Code into compliance with the requirements of
SB 7.
ENVIRONMENTAL IMPACT:
There is no environmental impact related to this item.
LEGAL ANALYSIS:
The City Attorney has reviewed the proposed ordinance, and has approved it as
to form.
FINANCIAL IMPACT:
There is no financial impact.
Agenda Item — M
RECOMMENDATION:
That the City Council introduce for First Reading of Ordinance No. 1640 which
adds Chapter 9.75 to the Seal Beach Municipal Code regarding Prevailing
Wages.
SUBMITTED BY: NOTED AND APPROVED:
Sean P. Crumby, P.E. IF J". Ingram, City ager
Director of Public Works
Attachment:
A. Ordinance No. 1640
Page 2
ORDINANCE NUMBER 1640
AN ORDINANCE OF THE CITY OF SEAL BEACH ADDING
CHAPTER 9.75 TO TITLE 9 OF THE SEAL BEACH MUNICIPAL
CODE REGARDING THE PAYMENT OF PREVAILING WAGES
WHEREAS, in 2012, the California Supreme Court decided the case of
State Building and Construction Trades Council v. City of Vista and held that the
payment of prevailing wages is a municipal affair, and thus a charter city may opt
to require its contractors to pay prevailing wages or not; and
WHEREAS, in reaction, the State Legislature recently passed Senate Bill
7, thereby adding Labor Code section 1782, which provides that a charter city
shall not receive or use state funding or financial assistance for a construction
project if the city has awarded, within the prior two years, a public works contract
without requiring the contractor to pay prevailing wages;and
WHEREAS, Labor Code section 1782 further provides that the harsh
penalty of not receiving or using state funding or financial assistance does not
apply if the charter city's failure to include the prevailing wage requirement in a
particular contract was inadvertent and contrary to a city charter provision or
ordinance that otherwise requires compliance with the Labor Code; and
WHEREAS, several charter cities have filed a challenge to Senate Bill 7,
asserting that the Labor Code section 1782 is unconstitutional; and
WHEREAS, the City Council of the City of Seal Beach ("City") intends to
pass this Ordinance requiring the payment of prevailing wages such that an
inadvertent error in a particular contract does not jeopardize any state funding or
financial assistance; and
WHEREAS, by passing this Ordinance, the City Council does not concede
that Senate Bill 7 is permissible, and the City Council continues to believe that
require
ing the payment of prevailing wages is a municipal affair; and
WHEREAS, the City Council intends this Ordinance to be effective only
insofar as Senate Bill 7 is in effect, and otherwise the Ordinance shall be
automatically repealed.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL
BEACH DOES ORDAIN AS FOLLOWS:
Section 1. Chapter 9.75 is hereby added to the Seal Beach Municipal
Code to read as follows:
"9.75 Prevailing Wages
9.75.005 Requirement to Pay Prevailing Wages
The provisions of California Labor Code section 1720 et seq.
regarding prevailing wages on public works and related regulations
as now existing and as may be amended are accepted and made
applicable to the City, its departments, boards, officers, agents, and
employees.
9.75.010 Automatic Repeal of Chapter 9.75 if Labor Code
Section 1782 is not in effect
If California Labor Code section 1782 is held by a court of
competent jurisdiction to be unconstitutional or otherwise
impermissible, and no further appeals of that decision are available
Ordinance Number 1640
or pandinQ. this chapter ohmU be automatically repealed without
further action of the Qty.^
Section 2. If any moodun, aubaeoUon, mubdiviakzn, paragnaph, sentenoe,
o|auoo or phrase of this Ordinance or any part thereof is for any naosnn held to
be invu|id, such invalidity shall not affect the validity of the remaining portions of
this Ordinance or any part hereof. The City Council of the City of Seal Beach
hereby declares that it would have passed each section, subsection, subdivision,
paragmph, aanhonce, clause or phneaa honaof, irrespective of the fact that any
one or more sections, subsections, subdivisions, paragraphs, sentences, clauses
or phrases be declared invalid.
Section 3. The Qh/ Clerk nho|| certify to the passage and adoption of
this Ordinance and shall cause the same or summary thereof to be published
and posted in the manner required bylaw.
PASSED. APPROVED AND ADOPTED by the Seal Beach City Council at
regular meeting held Vn the_day nf2U14.
Mayor
ATTEST:
City Clerk
STATE OFCALIFORNIA �
COUNTY OFORANGE )S8
CITY OF SEAL BEACH )
|. Linda Devine, City Clerk of the City of Seal Baaoh, do hereby certify that the
foregoing Ordinance was introduced for first reading at a regular meeting held on
the_28th day of_Ar)jl _. 2O14 and was passed, approved and adopted bythe
City Council ota regular meeting held on the day of________. 2014 by
the following vote:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
And do hereby further certify that Ordinance Number 1640 has been published
pursuant to the Seal Beach City Charter and Resolution Number 283G.
City Clerk