BURBANK REDEVELOPMENT AGENCY
Tuesday, November 25, 2003
AGENDA
CITY COUNCIL CHAMBER - 275 EAST OLIVE AVENUE
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6:30 P.M.
INVOCATION: Reverend Ron Degges, Little White Chapel.
The Courts have concluded that sectarian prayer as part of City Council meetings is not
permitted under the Constitution.
FLAG SALUTE:
ROLL CALL:
CONSENT CALENDAR: (Item 1)
The following item may be enacted by one motion. There will be no separate discussion on this item unless a Council Member so requests, in which event the item will be removed from the consent calendar and considered in its normal sequence on the agenda. A roll call vote is required for the consent calendar.
Approval of minutes for the regular meetings of August 26 and October 28, 2003.
Recommendation:
Approve as submitted.
END OF CONSENT CALENDAR
REPORT TO THE AGENCY:
2. Burbank Redevelopment Agency�s Prevailing Wage Policy:
On January 14, 1997, the Redevelopment Agency Board (Agency) adopted a prevailing wage policy which requires private developers or owner-participants to pay State prevailing wages on many types of redevelopment activities and projects. To balance the desire of organized labor and others to pay prevailing wages on all projects while not over burdening other more limited projects, the Agency�s policy provided several exemptions for certain types of projects, such as: housing and commercial rehabilitation projects which involve less than $250,000 of net Agency assistance; activities defined as �programs� where general qualifying criteria exist; and, all projects involving non-profit entities. In addition, the Agency retained the right �in its sole discretion� to waive or modify the policy with respect to any project �upon a showing that the interests to be served by this policy and the purposes generally of the Community Redevelopment Law will not be adversely affected by such waiver.�
Subsequently, the State Legislature adopted Senate Bill (SB) 975, which amended California�s prevailing wage law to codify interpretations by the Director of Industrial Relations that prevailing wages are not only applicable to construction of works of improvement for use by the public but also to private works of improvement that receive the benefit of public funds. SB 975 (which became law on January 1, 2002) effectively superceded the Agency�s local prevailing wage policy by defining the term �public funds� very broadly. SB 975 preempts much of the Agency�s policy and provides its own set of exemptions which are very specific and different than those in the Agency�s policy. The penalties that are imposed on developers for non-compliance are similar to the Agency�s policy and were not changed by SB 975.
Because SB 975 supercedes the local policy, there is no longer a need for the Agency policy. The policy was adopted before any law provided guidance to agencies to define which types of private redevelopment activities would be subject to prevailing wages. Over the past year, it has become evident that the differences between the Agency�s and State�s prevailing wage requirements create confusion and some duplication.
Additionally, the Agency�s policy requires monitoring the payment of prevailing wages whereas State law does not require the Agency to conduct such monitoring.
Due to the State�s budget challenges and its potential effects on cities and redevelopment agencies, staff has considered various ways to curtail expenses. Since the new amendments to the State�s prevailing wage law supercedes the Agency�s local prevailing wage policy, and because enforcement penalties are the same, it is recommended that the local policy be repealed.
Staff recommends that the Agency adopt the resolution repealing the Burbank Redevelopment Agency�s Policy on the payment of prevailing wages by private redevelopers or owner-participants for certain redevelopment activities.
Recommendation:
Adoption of proposed resolution entitled:
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK REPEALING THE POLICY ON PAYMENT OF PREVAILING WAGES BY PRIVATE REDEVELOPERS OR OWNER-PARTICIPANTS.
RECESS to conclude the City Council meeting.
ADJOURNMENT.