MEETING DATE:
November 10, 2014
SUBJECT:
Title
RESOLUTION NO. 2014-8004 - AUTHORIZING ADDITIONAL FUNDING IN SUPPORT OF THE LEGAL CHALLENGE TO SENATE BILL 7
Body
Recommendation
Recommendation
ADOPT a resolution authorizing additional funding in the amount of $5,000 per appeal to the Senate Bill 7 challenge effort, for a maximum potential additional contribution of $10,000.
Body
Board or Commission Action
Not Applicable
Relevant Council Strategic Theme
Dynamic and Responsive Service Delivery
Good Governance
Relevant Department Goal
Not Applicable
Introduction
Senate Bill (SB) 7, passed by the California Legislature in 2013, prohibits a charter city from receiving or using state funding or financial assistance for a construction project if the city has a charter provision or ordinance that authorizes a contractor to not comply with state prevailing wage requirements on local construction projects. It was passed after the 2012 California Supreme Court decision in State Building and California Trades, AFL-CIO v. City of Vista that ruled charter cities can decide how they want to spend their city tax funds. SB 7 sought to nullify that decision by imposing costly conditions on public works projects that cities help fund with their own tax dollars.
The charter cities of Carlsbad, El Cajon, El Centro, Fresno, Oceanside, and Vista filed a court challenge to SB 7 that was also funded by the League of California Cities and about nine other charter cities, including San Marcos. In August 2014, San Diego Superior Court Judge Joel R. Wohlfeil upheld SB 7. The plaintiffs are appealing the judge's decision.
Discussion
Judge Wohlfeil ruled that SB 7 is legal and does not conflict with cities' charter provisions or ordinances that permit them to not comply with the state's prevailing wage requirements. He also ruled that the state has a right to pursue policy objectives through financial incentives, and that other constitutiona...
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