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Resolution 12743 and Staff ReportCITY OF ALAMEDA RESOLUTION NO. 12743 SUPPORTING PREVAILING WAGE LAWS AND REAFFIRMING COMMITMENT TO UPHOLD PREVAILING WAGE REQUIREMENTS ON CITY PUBLIC WORK PROJECTS WHEREAS, the construction industry plays a vital and important part in the economic well -being of the City of Alameda by providing jobs and a steady stream of revenue in the community; and WHEREAS, a dynamic and growing industry is dependent on a workforce of highly trained and skilled construction workers; and WHEREAS, the wages determined to prevail in local communities are required to be paid to construction workers on state and local agency public works projects and are responsible for maintaining a stable and skilled work force, providing a living wage to workers and their families, providing health and retirement benefits to workers and their families, and helping to support apprenticeship training programs; and WHEREAS, the University of Utah recently completed an in- depth study of the economic impacts resulting from the repeal of prevailing wage legislation in nine states, which conclusively shows that the wages of all construction workers, union and non- union alike, were significantly reduced, that the states lost substantial income and sales tax revenues which far exceeded any savings realized on the cost of public works projects, that construction workplace injuries skyrocketed because of the use of unskilled workers, that apprenticeship training was reduced by almost half, and that construction projects experienced an increased number of cost overruns and change orders; and WHEREAS, all available evidence conclusively proves that California's prevailing wage requirements do not inflate the cost of public works, but to the contrary, help maintain a highly trained and stable work force who reside in the communities where they are employed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Alameda that the Council recognizes the importance of prevailing wage laws, declares the desire that these laws be continued without change and reaffirms the Council's unwavering commitment to uphold prevailing wage requirements on City public works projects. BE IT FURTHER RESOLVED that the City Clerk transmit a certified copy of this resolution to the Governor and to Dorothy Vuksich, Chief, Division of Labor Statistics and Research, P.O. Box 420603, San Francisco, CA 94142. I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Council of the City of Alameda in regular meeting assembled on the 20th day of February , 1996, by the following vote to wit: AYES: Councilmembers Arnerich, DeWitt, Lucas, Mannix and President Appezzato - 5. NOES: None. ABSENT:. None. ABSENTENTIONS: None. IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said City this 21st day of February , 1996. /4, I Diane Felsch, City Clerk City of Alameda eaddia9 eted eogdoveotio. 7tada &ailed 4 dhimed4 emote/ AFL -CIO 8400 Enterprise Way, #101 Oakland, Ca. 94621 (510) 430 -8664, Fax 430 -8128 January 29, 1996 Council Member Karin Lucas City of Alameda, City Hall 2250 Central Ave. Alameda, Calif. 94501 Dear Council Member Lucas, On February 20, 1996, hearings to meet the necessary procedural requirements to change prevailing wage regulation in California will begin. The Governor is determined to proceed with changes which will dramatically alter prevailing wage in California. The regulations, known as "The Little Davis Bacon Act" have been in place since 1931. It is estimated that there will be a 20% cut in the wages of union construction workers in California. Many, if not all of those who work construction on public works projects will not continue to receive employer contributions for health insurance. The apprenticeship programs which rely on the economic support of union workers will be jeopardized. In short, a system which has insured a firm foundation for all workers will be undermined by these regulatory proposals. These impacts will also be felt within our communities. I am writing on behalf of thirty Local Unions and the 20,000 building trades workers who work and live within Alameda County to request your assistance. We believe that the prevailing wage regulations which have been in place all these years are in no need of change. I would ask that you send the Governor a resolution which affirms your support for that position and send it immediately. It is critically important that representatives of the communities which will be impacted by this regulatory change voice their opposition by the February 27, 1996 cut -off of public comment. Written Communication: Agenda Item #5 -G City Council Meeting 2 -20 -96 I am enclosing a recent editorial from the San Francisco Chronicle which sums up our position on prevailing wage. I have also enclosed a sample resolution and some of the basic information which has accompanied the proposed regulatory change. It would be helpful if all communications which are sent are also copied to our office for our records. Please remember that written comment must be received no later than 5:00 P.M. on February 27, 1996 to: Dorothy Vuksich - Chief Division of Labor Statistics and Research P.O. Box 420603 San Francisco, CA 94142 Thank you very much for your time on this urgent issue. Sincerely, ,45., ../._„4_ Barry Luboviski Secretary - Treasurer Encl. (2) BL:hm opeiu:29 /afl-cio A16 * ** WEDNESDAY, JANUARY 24, 1996 Xfiand5ro ebronidt THE VOICE OF THE WEST EDITORIALS Prevailing Wages Buy An Honest Day's Work 11 N HONEST DAY'S pay for an p honest day's work" is a cliche, but it remains the best advice for sorting through the complex thicket of the so- called "prevailing wage" question, which has rapidly moved to the forefront in the state Legislature, where an Assembly floor vote is possible this week. With Governor Wilson playing cheer- leader, several Re- publican -spon- sored bills to repeal or alter the state's prevailing wage law for con- struction workers on state funded projects — schools, highways, hospi- tals and jails — stand a good chance of passage in the new GOP - dominated Assem- bly. Wilson has proposed an administrative change that would lower prevailing wage rates through- out the state. The appeal of such efforts is simple: Abolishing prevailing wages, say propo- nents, will bring down the cost of public works by as much as 20 percent, saving the state an estimated $200 million a year that is currently lost to the inflated paychecks of construction workers. Simple but deceptive. In the first place, labor costs represent only about 25 percent of heavy construction projects, so workers The average construction worker in California earns only about $28,000 a year would have to be paid close to nothing to realize a 20 percent savings. Even if blue - collar construction wages were slashed by 20 percent, the total savings would be only about $50,000 for every $1 million spent by the state on heavy construction. urthermore, whatever savings might be realized would have to be offset against the potential costs of abolishing prevailing wages, including the inevitable loss of well - trained, skilled workers, who tend to be more productive and to complete work as- signments on a faster timetable. A Federal Highway Administration study comparing high -wage and low -wage states shows that California is among the most cost - efficient states in freeway construction. The cost of one mile of freeway in Virginia, a nonpre- vailing -wage state, for instance, is nearly twice as high as here. And school construc- tion costs in "high- wage" California are in the lowest one -third of all the states. Similarly, states that have abandoned prevailing wages, such as Utah, have found that, due to lower skill levels and poorer quality control, cost overruns on highway projects have tripled and the rate of inju- ries to workers has increased 15 percent. The average construction worker in Cali- fornia today earns only about $28,000 a year, which is below the inflation- adjusted aver- age of 1970. Pushing that honest day's pay down another 20 percent would only render thousands of workers unable to provide for their families, and it would probably not result in an honest day's work. For workers and the public, the prevail- ing wage works. Let's not mess with it. Resolution (Approved 9/95 by Sacramento City Council) WHEREAS, The construction industry plays a vital and important part in the economic well -being of the City of West Sacramento by providing jobs and a steady stream of revenue into the community; and WHEREAS, A dynamic and growing construction industry is dependent on a workforce of highly trained and skilled construction workers; and WHEREAS, The wages determined to prevail in local communities are required to be paid to construction workers on state and local agency public works projects and which are responsible for maintaining a stable and skilled work force, providing a living wage to workers and their families, providing health and retirement benefits to workers and their families, and helping to support apprenticeship training programs; and WHEREAS, The University of Utah recently completed an in -depth study of the economic impacts resulting from the repeal of prevailing wage legislation in nine states and which conclusively shows that the wages of all construction workers, union and non -union alike, were significantly reduced, that the states lost substantial income and sales tax revenues which far exceeded any savings realized on the cost of public works projects, that construction workplace injuries skyrocketed because of the use of unskilled workers, that apprenticeship training was reduced by almost half, and that construction projects experienced an increased number of cost overruns and change orders; and WHEREAS, All available evidence conclusively proves that California's prevailing wage requirements do not inflate the cost of public works, but to the contrary, help maintain a highly trained and stable work force who reside in the communities where they are employed; now, therefore, be it. RESOLVED, by the Council of the City of West Sacramento, that the Council recognizes the important of prevailing wage laws, declare the desire that these laws be continued without change and reaffirm the Council's unwavering commitment to uphold prevailing wage requirements on City public works projects; and be it further RESOLVED, that the City Clerk transmit a copy of this resolution to the Governor, the Director of the Department of Industrial Relations, and appropriate members of the State Legislature. opeiu:29 /afl-cio (c:pre -wage)