DATE: January 16, 2019
SUBJECT:
Title
RESOLUTION AMENDING BOARD OF PORT COMMISSIONERS POLICY NO. 356 - LESSEES' WAGE RATES - TO COMFORM WITH EXISTING STATE LAW AND RENAME THE POLICY - PAYMENT OF PREVAILING WAGES
Body
EXECUTIVE SUMMARY:
California State law requires the payment of Prevailing Wages for Public Works projects. Prevailing Wages are the general prevailing rate for per diem wages and the general prevailing rate for holiday and overtime work in the locality in which the public work is to be performed for each craft classification or type of worker.1 Prevailing wages are established by the State Department of Industrial Relations (DIR) for each trade and occupation employed in the performance of Public Works and other areas of employment as determined by the DIR. The Prevailing Wage rates are usually based on rates specified in collective bargaining agreements.2 Public Works is construction, design or repair work done under contract and paid for in whole or in part by public funds.3
Public agency construction projects including those performed by the District and other public agencies are considered Public Works projects, as they are paid for in whole or in part by public funds, and therefore require the payment of Prevailing Wages, pursuant to the California Labor Code (Prevailing Wage Law).
The San Diego Unified Port District's (District) Board of Port Commissioners (BPC) Policy No. 356 - Lessees' Wage Rates for Tenants, which was adopted in 1972 is presently not in conformance with the Prevailing Wage Law. On one hand, the current Policy does not conform with the Prevailing Wage Law, as it limits the payment of Prevailing Wages to persons who are "employed by lessee on the tidelands" which fails to account for independent contractors and other laborers who perform Public Works on tideland leaseholds but are not employed by District tenants. Prevailing Wages must be paid for Public Works on tenant leaseholds, if construction is required u...
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