HomeMy WebLinkAboutCC AG PKT 2014-12-08 #N AGENDA STAFF REPORT
DATE: December 8, 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. 1644, adding
Chapter 9.75 to the Seal 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:
No environmental impact with this item.
LEGAL ANALYSIS:
The City Attorney has reviewed the proposed as to form..
FINANCIAL IMPACT:
No financial impact with this item.
Agenda Item N
RECOMMENDATION:
That the City Council introduce for first reading Ordinance No. 1644, adding
Chapter 9.75 to the Seal Beach Municipal Code regarding Prevailing Wages.
SUBMITTED BY: NOTED AND APPROVED:
Sean P. Crumby, P.E. J".. Ingram, City Mar#ge
Director of Public Works
Attachment:
A. Ordinance No. 1644
Page 2
ORDINANCE NO. 1644
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
RECITALS
A. In 2012, the California Supreme Court held in the case of State Building
and Construction Trades Council v. City of Vista that the payment of prevailing wages is
a municipal affair and that a charter city has the discretion whether or not to require its
contractors to pay prevailing wages.
B. In reaction to that decision, the State Legislature 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, effective January 1, 2015.
C. Labor Code section 1782 further provides that the penalty of not receiving
or using state funding or financial assistance does not apply if a 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.
D. Several charter cities have filed a challenge to Senate Bill 7, asserting that
the Labor Code section 1782 is unconstitutional, but the trial court has issued an
unfavorable ruling.
E. The City Council of the City of Seal Beach ("City") intends to pass this
Ordinance requiring the payment of prevailing wages so that an inadvertent error in a
particular contract does not jeopardize any state funding or financial assistance.
F. By passing this Ordinance, the City Council does not concede that Senate
Bill 7 is permissible or that the decision to require payment of prevailing wages is not a
municipal affair. 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 or pending, this chapter shall
be automatically repealed without further action of the City."
Section 2. If any section, subsection, subdivision, paragraph, sentence, clause
or phrase of this Ordinance or any part thereof is for any reason held to be invalid, such
1
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, paragraph, sentence, clause or
phrase hereof, irrespective of the fact that any one or more sections, subsections,
subdivisions, paragraphs, sentences, clauses or phrases be declared invalid.
Section 3. The City Clerk shall certify to the passage and adoption of this
Ordinance and shall cause the same or a summary thereof to be published and posted
in the manner required by law.
Mayor
ATTEST
City Clerk
APPROVED AS TO FORM:
City Attorney
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss
CITY OF SEAL BEACH }
I, —_ City Clerk of the City of Seal Beach, do hereby certify that
the foregoing Ordinance was introduced for first reading at a regular meeting held on
December 10, 2014 and was passed, approved, and adopted by the City Council at a
regular meeting held on 2014 by the following vote:
AYES: Council Member(s) .
NOES: Council Member(s)
ABSENT: Council Member(s)
ABSTAIN: Council Member(s)
and do hereby further certify that Ordinance Number 1644 has been published pursuant
to the Seal Beach City Charter and Resolution Number 2836.
City Clerk
2