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RESOLUTION NO. 2014-230 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PAYMENT OF PREVAILING WAGES ON CITY PUBLIC WORKS CONTRACTS AND OTHER MEASURES REQUIRED TO REMAIN ELIGIBLE FOR STATE FUNDING AND FINANCIAL ASSISTANCE FOR CITY CONSTRUCTION PROJECTS UNDER CALIFORNIA LABOR CODE SECTION 1782 (ALSO KNOWN AS SB 7) UNLESS AND UNTIL SB 7 IS ENJOINED OR INVALIDATED
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
Starting January 1, 2015, recently enacted state law requires Charter cities to pay prevailing wages on all (but very minor) local public works projects, regardless of whether or not state funding is involved, as a condition to receiving state funding for any such project. The legal validity of this law (SB 7) has been challenged, appropriately, as a violation of charter city "home rule" authority. Unfortunately, in August 2014 a local trial court upheld the state law. This holding has been appealed, but a final ruling (more than likely to come from the California Supreme Court), is not expected for some time.
Until now, the City's longstanding policy has been to bid and award public works contracts with prevailing wages required only where federal or state funding sources imposed such a requirement. Pending a final ruling on the legal validity of SB 7, in order to avoid the loss of state funding for local public works, staff is now recommending that the City Council change this policy, at least temporarily, in order to comply with SB 7.
Staff will monitor and keep the Council apprised of the progress of the SB 7 litigation, the additional costs incurred as result of this change in policy, and other factors relating to the amount and availability of state funding for City projects. If another change in prevailing wage policy becomes appropriate, staff will come back to Council and present such change for Council consideration.
ENVIRONMENTAL REVIEW
The City Attorney's of...
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