Reports on New Third Edition: Are Charter Cities Taking Advantage of State-Mandated Construction Wage Rate (“Prevailing Wage”) Exemptions?

Print Friendly, PDF & Email

Local government news site reports today (October 2, 2012) on the release of the third edition of the first and only guide to the status of government-mandated construction wage rates (so-called “prevailing wages”) in California’s 121 charter cities.

The report is Are Charter Cities Taking Advantage of State-Mandated Construction Wage Rate (“Prevailing Wage”) Exemptions? It is published by the California Construction Compliance Group.

As stated in the article “Charter City Report Updated,” covered the release of the original report in 2009 and the first update in 2011. In the three years since the first edition was published, has seen an explosion of proposals to California voters for city charters.

Voters in Costa Mesa, Escondido, and Grover Beach will consider charters on November 6, 2012. Links to the proposed charters are here:

I’m cited in the article:

Kevin Dayton, President and CEO of Labor Issues Solutions, LLC, authored the introduction to the Charter City Report, and made the case for cost savings through charters.

“One way (to save city resources) is to enact policies that allow wage rates for city construction contracts to more accurately reflect economic conditions in the local market region.”

The report was designed to not only educate local officials about charters and cost savings, but Dayton also presents it as a tool to help establish a charter or amend one to include prevailing-wage exemptions.

“This third edition of the guide to the status of government-mandated construction wage rates in California’s charter cities provides all the information necessary for charter cities considering exercising their constitutionally-guaranteed right to determine the government-mandated wage rate policies in their own municipal construction contracts.”

The article also quotes Costa Mesa City Councilman Jim Righeimer talking about cost savings that would result if voters in the City of Costa Mesa approve a proposed charter through Measure V in the November 6, 2012 election. Righeimer wants the City of Costa Mesa to establish its own government-mandated construction wage rate policy for purely municipal projects under the authority of its proposed charter:

Those kinds of savings, and many of the other freedoms afforded to cities, have three cities looking to charter in November. One of the highest profile cases comes from Costa Mesa, where the City Council has been pursuing a charter for the better part of a year.

For Costa Mesa, it’s about controlling local affairs and being able to leverage local solutions to local problems. The most obvious case, as Councilman Jim Righeimer told PublicCEO in the past, is outsourcing and contracting.

Pointing to the city’s jail services, Righeimer said that, “…savings alone on a $1.5 million cost could be $50k a month. That’s just one contract.”

But the city also included language exempting local projects from prevailing wage laws.

“Prevailing wage is clear as day,” said Righeimer. “We want to be able to negotiate with market rate wages like Newport and Huntington. We don’t want to have to have a union wage.”

Here are links to two current examples of charters recently approved by voters:

Also, I have begun a project to create from scratch a new model charter for California cities. See link below; I’ll keep you informed:

Comments are closed.