Ordinance 2014-16ORDINANCE NO. 2014-16
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GILROY ADDING A NEW SECTION 2 ENTITLED "PREVAILING
WAGES REQUIRED" TO CHAPTER 1 OF THE GILROY CITY
CODE TO REQUIRE THE PAYMENT OF PREVAILING WAGES
FOR LOCALLY FUNDED PUBLIC WORKS PROJECTS
WHEREAS, this ordinance is not subject to the California Environmental Quality Act
( "CEQA ") pursuant to Section 15060(c)(2) of the CEQA Guidelines (Title 14, Chapter 3 of the
California Code of Regulations) because the activity will not result in a direct or reasonable
foreseeable indirect physical change in the environment, and Section 15060(c)(3) because the
activity is not a project as defined in Section 15378 of the CEQA Guidelines because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION I
Chapter 1 of the Gilroy City Code, entitled "General Provisions" is hereby amended to
add a new Section 2, entitled "Prevailing Wages Required" to read as follows:
"PREVAILING WAGES REQUIRED"
Sec. 2.1 Purpose and findings.
The state prevailing wage law requires contractors on public works projects to be paid the
general prevailing rate of per diem wages for work of a similar character in the locality in which
the work is performed. Under California Constitution, Article XI, Section 5, the laws of charter
cities supersede state law with respect to municipal affairs of the city. The City of Gilroy is a
charter city duly organized and validly existing under the laws of the State of California, and
thus the City may exempt itself from prevailing wage requirements.
California Senate Bill No. 7 ( "SB 7 "), approved October 13, 2013, provides that the state
has limited financial resources and resolves only to extend financial assistance to construction
projects of those charter cities that require compliance with the prevailing wage law on all their
municipal construction projects. Effective January 1, 2015, unless the contract was advertised
for bid prior to that date, charter cities are additionally disqualified under SB 7 if the city has
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awarded, within the prior two (2) years, a public works contract without requiring the contractor
to comply with prevailing wage requirements. Charter cities that have charter provisions
exempting city projects from prevailing wage requirements may adopt a local prevailing wage
ordinance with requirements equal to or greater than state prevailing wage law in order to avoid
disqualification.
The City Council in 1993 approved a policy directing staff to require prevailing wages to
be paid on all capital improvement projects in the city. Compliance with SB 7, however,
requires the payment of prevailing wages beyond capital improvement projects to include
maintenance and repair work. Notwithstanding the City's constitutional right to exempt locally
funded projects from prevailing wage, the City finds its financial interests are best served by
complying with California's prevailing wage law as delineated in California SB 7 until such time
as that law is modified to respect the City's constitutional rights as a charter city or is otherwise
invalidated by a court of competent jurisdiction.
Sec. 2.2. Compliance
The City will comply with California's prevailing wage law to continue to receive state
funding for construction projects pursuant to SB 7.
Sec. 2.3. Prevailing wage requirements.
The City hereby requires prevailing wages to be paid on all public works contracts
awarded by the City within the meaning of SB 7. Public works contracts do not include
contracts for projects of twenty -five thousand dollars ($25,000) or less when the project is for
construction work, or projects of fifteen thousand dollars ($15,000) or less when the project is
for alteration, demolition, repair or maintenance work.
Sec. 2.4. State funding.
The provisions of this ordinance do not restrict the city from receiving or using state
funding or financial assistance awarded prior to January 1, 2015, or from receiving or using state
funding or financial assistance to complete a contract awarded prior to January 1, 2015. . Further,
this ordinance does not disqualify or amend any contracts awarded prior to January 1, 2015.
Sec. 2.5. SB 7 status.
If SB 7 is, for any reason, held to be invalid or inapplicable to charter cities by any court
of competent jurisdiction or is otherwise repealed, this ordinance shall automatically be void
without further action of the City Council and be of no further effect immediately thereafter.
SECTION II
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If any section, subsection, subdivision, sentence, clause, or phrase of this Ordinance is for
any reason held to be unconstitutional or otherwise void or invalid by any court of competent
jurisdiction, the validity of the remaining portion of this Ordinance shall not be affected thereby.
SECTION III
This Ordinance shall be in full force and effect on December 31, 2014, rather than 30 days
after adoption, for ease of administration.
PASSED AND ADOPTED this 17`h day of November, 2014 by the following roll call vote:
AYES: COUNCILMEMBERS: ARELLANO, AULMAN, BRACCO, LEROE-
MUNOZ, TUCKER, WOODWARD and GAGE
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
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ORDINANCE NO. 2014 -16
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Ordinance No. 2014 -16 is an original ordinance, or true and correct copy of a City
ordinance, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council
held on the 17'h day of November, 2014, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 19'h day of November, 2014.
City Clerk of the City of Gilroy
(Seal)