REPORT TO THE CITY COUNCIL
DATE: November 6, 2014
FROM: STEVE BRANDAU, Council President
District 2
SUBJECT
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BILL - (For Introduction) - Amending Section 4-401 of the Fresno Municipal Code and repealing Sections 4-402, 4-403 and 4-404 of the Fresno Municipal Code relating to prevailing wages for public works
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RECOMMENDATION
Staff recommends that City Council approve the amending Section 4-401 of the Fresno Municipal Code ("FMC") and repealing Sections 4-402, 4-403 and 4-404 of the FMC relating to prevailing wages for public works. The recommended action will allow the City to remain eligible to receive state grant and loan funding and other financial assistance for public utilities and public works capital projects after December 31, 2014.
EXECUTIVE SUMMARY
The proposed ordinance repeals Sections 4-402, 4-403 and 4-404 relating to the determination of prevailing wages, reference to prevailing wages in notice of contract and exemption from payment of prevailing wages, and amends FMC section 4-401 to state the City shall pay prevailing wage consistent with Labor Code Sections 1770 et seq The proposed ordinance is intended to comply with state law so that the City will remain eligible for state grant and loan funding and other financial assistance for public utilities, public works, or public transportation related capital projects after December 31, 2014.
BACKGROUND
General-law cities are required to follow state law and pay prevailing wages for public works projects; however charter cities have "home rule" governing powers that enable them to decide whether prevailing wage is required if the project is financed solely out of local revenues. Fresno is one of ten charter cities with a "partial exemption" to state prevailing wage requirements, and there are 41 charter cities with full exemption.
Senate Bill 7 ("SB 7") adds Labor Code section 1782, which prevents a city from receiving state funding or financial as...
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