CCMIN022096 - Laserfiche WebLink

Item 6i Establishment of a Process to Forward City Commission Recommendations to the City Council. (SR96:56) This item was continued to the meeting of March 5, 1996. Item 6k Status Report on LAVWMA/EBDA Negotiations - Consideration of the revised EBDA proposal dated 1/25/96 and LAVWMA Draft MOU dated 2/6/96. (SR96:53) This item was continued to the meeting of March 5, 1996. 7, MATYERS INITIATED BY COUNCIL Item 7a Review of Proposal by the California Department of Industrial Relations to Modlfv Prevailing Wage Ret, ulations for Public Works Proiects. (SR96:54) Randall Lum presented the staff report. Mr. Tarvet indicated this issue came up at the Mayors Conference and the motion was to approve the resohtion submitted by the union representatives and adopted by the City of Sacramento. Ms. Michelotti referred to the editorial and asked for clarification of the savings of labor costs vs. contract administration. Mr. Lure indicated the issue that is being argued is that you don't save a lot of money because prev3iling wages only apply to blue collar workers and crafts workers and not to administrators, suppliers, etc. For example, that component of a pwject is only 35 % of the total cost. If you decrease the wages, it only saves a fraction of the total cost. The counter argument is that if you increase the wages of seven people based on what only three people are being paid, then you artificially inflate wages. There is then a decrease in competition and an increase in costs for construction projects. Under the proposed scenario, if a majority of workers are not paid the same amount, you would average the salary of all and that would become the prevailing wage. Ms. Acosta illustrated the issue by referring to the fact that private developers can usually improve a park at a lower cost than if the City went to bid for the same project. 02/20/96 -20-