HomeMy WebLinkAboutReso 2014-230 RESOLUTIO\' NO. 2014-230
RESOLUTION OF THE CITI' COLT?vCIL OF THE CITY OF
CHULA VISTA APPROVIIvG THE PA1'MENT OF
PRE\%AILI?�G A�.4GES ON CIT1' PUBLIC WORKS
CO?�TRACTS A�TD OTHER A4EASURES REQtiIRED TO
RENIAIi�' ELIGIBLE FOR STATE FLTNDI?�TG AND
FII�'A\CIAL ASSISTANCE FOR CITY CONSTRUCTION
PROJECTS UI�'DER CALIFORNI.4 LABOR CODE SECTION
1782 (ALSO KNOW1' AS SB 7) L�LESS A\iD UTTTIL SB 7 IS
ENJOII�7ED OR IIvVALIDATED
VIHEREAS, the City of Chula Vista is a Charter Cit�� protected from State legislati�=e
interference in its municipal affairs b�� the Culifornia Cons�rlu�ion. .9rticle,l7. Sec .i(o); and
�'�'HEREAS, in Srme Burldrn� and Construction Trades Councr! of California. .4FL-C/O
r. i%ista (2012) �� Cal.�`" �47 (the `Vista Case `), the Califomia Supreme Court determined that
the subject of prevailing waee rates for locally funded public ���orks projects is a municipal affair,
and that Charter cities are not subject to the state law requirement to pay pre��ailing wases;
instead; Charter cities ha��e the independent authoritv to determine ��fiether and N�hen to pay
pre��ailing waees as the�� deem appropriate; and
IUHEREAS. in response to the Vista Case. ���ith the intent of imposine the state's
pre��ailing N�aee requirements on Charter cities H�ith an indirect approach, the California
Leeislature adopted and the Govemor signed Senate Bill 7 (SB 7), addine Section 1782 to the
Califomia Labor Code. B}� its terms. SB 7 disqualifies a charter cit}� from recei�ing state
funding for any construction project if that cin� has awarded ��ithin the prior rn�o �=ears a public
works contract ��°ithout requiring the contractor to pay prevailino ���age rates; and
W'HEREAS, in Ciry of EI Cenn-o er ul v. Lonier (Cal. Court of Appeal, Fourth District.
Case I�'o. D-0667»), a 2roup of charter cities filed suit to invalidate SB 7 on the grounds that it
violates the Constitutional prohibition on interference in the municipal affairs of charter cities;
and
WHEREAS, the Lunier case is pendine before the Court of Appeal, and no injunction has
been issued sta}�ing the effect of SB 7; and
V�7HEREAS: pursuant to Chula Vista Municipal Code Section 258.070, the polic}� of the
Cirv is to not pay pre��ailin2 �rages on City contracts unless (A) The prevailing ���aQe is leealh�
required: and constimtionall}� permitted to be imposed, b}� federal or state erants; or (B) 7�he
project is considered by the Cit}� Council not to be a municipal affair of the city; or (C) Pa}�ment
of the prevailin� ���age is authorized by resolution of the Cit}� Council; and
Resolution No. 20]4-230
Pa�e No. 2
WHERE.AS. the Citv of Chula Vista desires to maintain its authoritv to determine on a
local level whether and when to pay pre��ailing wages on locall}� funded projects, but is
constrained by the prospect of losins state funds on all construction projects, a si�nificant
financial impact that H�ould make it infeasible for the City to undertake certain critical
infrastructure maintenance and improvement projects on which local residents depend; and
WHEREAS; in order to avoid the significant negative financial impact of losing state
funding as a result of SB 7, the Cit�� Council has found and determined that it is in the best
interests of the City to modify Cit}� policy regarding the payment of prevailing wage to require
the pa��ment of prevailine ��ages to the e�tent necessary to comph� with SB 7 unless and until SB
7 is enjoined or im�alidated; and
V✓HEREAS, such Council action is expressly authorized by CVMC Section 2.58.070.C:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it hereby authorize and direct City staff to: (a) advertise, bid and award public works
contracts (as defined in Labor Code section 1782(d)(1)) in conformance with the Public
Contractina Code requirements regardine pati�ment of prevailing wages; and (b) take such other
measures required by SB 7 to remain eligible for state funding and financia] assistance for Cit��
construction projects, including, without limitation, the development and implementation of
appropriate administrative procedures.
BE IT FURTHER RESOLVED that this Resolution shall expire and be of no further
force or effect immediately on the issuance of a preliminary or permanent injunction enjoinine
the state from enforcin¢ SB 7, or the entry of any other court order that im�alidates or suspends
the operation of SB 7.
Presented by Approved as to form bv
Richard . opki GI n R. Go gins ,
Director of Public W rks Cit� tto ey
Resolution No. 2014-230
PaQe No. 3
P.ASSED. APPROVED. and ADOPTED bv the Cit�� Council of the Cit� of Chula Vista.
Califomia. this 2nd da�= of December 2014 b� the fo1loH�ina vote:
A1'ES: Councilmembers: Bensoussan. Ramirez. Salas and Cox
?�'.4I'S: Councilmembers: None
ABSENT: Councilmembers: Aeuilaz
Patricia Aguil , eputy Ma}�or
ATTEST:
Donna R. Norris. MC. Citv Clerk
STATE OF CALIFORI�'I.A )
COUT'Tl' OF SAN DIEGO )
CITY OF CHLJL.A VISTA )
I. Donna R. Norris. Cit�� Clerh of Chula Vista. Califomia, do herebvi certifi� that the foreaoin�
Resolution No. 2014-230 H�as dulv passed; appro��ed, and adopted by the Citv Council at a
reeular meetine of the Chula Vista Citv Council held on the 2nd dav of December 2014.
Executed this 2nd da�� of December 2014.
Donna R. Noms. CMC. Cm� Clerk