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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 16, 2014 <br />CLERK OF COUNCIL USE ONLY: <br />TITLE: APPROVED <br />EMERGENCY ORDINANCE AMENDING SAMC <br />❑ <br />As Recommended <br />SEC 33 -202 AND ADDING 33 -206 RELATING TO <br />El <br />E] <br />As Amended <br />Ordinance Reading <br />PAYMENT OF PREVAILING WAGES <br />[I <br />on <br />Ordinance on 2 2n nd Reading <br />(STRATEGIC PLAN NO. 1, 3; 7,4) <br />❑ <br />Implementing Resolution <br />❑ <br />Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />CITY MANAGER <br />RECOMMENDED ACTION <br />Adopt an emergency ordinance amending Santa Ana Municipal Code Section 33 -202 and adding 33- <br />206 to the Santa Ana Municipal Code relating to payment of prevailing wages. The California <br />legislature passed Senate Bill (SB) 7 which requires cities to have a prevailing wage ordinance in place <br />by January 1, 2015 to continue to receive state funding. <br />DISCUSSION <br />In 1931, the California Legislature enacted the State's prevailing wage law. The law requires <br />contractors on public works projects to be paid the general prevailing rate of per diem wages for <br />work of a similar character in the locality in which the work is performed. In 2012, the California <br />Supreme Court upheld charter city authority to exempt locally- funded public works projects from <br />prevailing wage (State Bldg. & Const. Trades Council of Cal., AFL -CIO v. City of Vista (2012) 54 <br />Cal. 4th 547). <br />In response to the California Supreme Court's holding, the California Legislature passed SB 7. <br />Under the guise of advancing a "skilled construction workforce," SB 7 prohibits charter cities from <br />receiving or using State funding for locally- funded construction projects if the charter city has a <br />resolution or ordinance exempting projects from the State prevailing wage requirements. As a <br />result, to receive State funds for a public works contract, SB 7 requires charter cities to comply with <br />prevailing wage law on all of its public works contracts, even those that are funded exclusively with <br />charter city funds. <br />The City believes that compliance with SB 7 is in the best interest of our community, supports the <br />City's strategic plan goals, and will allow the city to continue to receive State funding by amending <br />SAMC Sec. 33 -202 and adding Sec. 33 -206. <br />50A -1 <br />