HomeMy WebLinkAboutAgenda 3.G 04/04/2011A Item # 3.C�
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DATE: April 4, 2011
TO: Honorable Mayor and Members ofile City Council through City Manager
on
FROM: Pamela Tuft, Interim. Director— Department of Water Resources & Conservat
SUBJECT: Resolution Authorizing the Mayor to Sign the Letter of Support for California
Assembly Bill 587 Relating to Legislation that Would Extend the Current
Prevailing' Wage Exemption for Volunteers and Conservation Corps until
January 1, 2017
It is recommended that the City Council adopt the Resolution authorizing the Mayor to sign the
letter of for California Assembly Bill (AB) 587 relatingJo legislation that would extend
the current prevailing wage exemption for volunteers and conservation corps until January 1,
2017.
In 2003, labor laws in effect for the Sfate of California created a significant obstacle to utilizing
volunteer and conservation corps efforts for community based projects that could, by definition,
be classified as public works. The ,state laws; in "effect at that "time, required paying prevailing
wa es to. volunteers for co mmunity active
g y ties that help enhance or,restore,local habitats ,
Volunteer agencies could be subject to fines imposed,on their organization for failure to. pay their
volunteers a prevailing wage for these commun ty'aciivities:,.In 2004 the S.tate.Legislature
passed AB 2690, which added Labor Code Section 1720.4 to exempt certain qualified volunteers
and conservation corps workers °•from the prevailing wages requirement and allow these
volunteers serve.,their communities (unpaid) until' 20
January 1, 09. In 2008, the state Legislature
extended'this exemption to January l; 2012 by passing AB 2537.
DlkU'SS10N
In July, �20
DWR& y ma's. Department of Water .Re-sburees and Conservation '..
( �C) T coor" e Cit , offim unity Work Day. The DWR &C w orked with volunteer
residents', from t d mated ,a Comm
a
he Village Meadows Subdivision to restoretheihabitat to a stretch of'Lynch
Creek. The DWR &C and these volunteers removed non - native species and created a better
habitat for animals :and people. Additional coordination wifli the Y,outh,Ecology Corp, through
Petaluma'People;Services Center, generated two weeks of volunteer work to greatlyreduce the
Agenda Review:
City'Atto� ey Finance Director City Manager 1 — M
blackberry growth. "DWR &C hopes to coordinate additional community work efforts with local
volunteer agencies to plant native understory, plants and trees to this section of Lynch Creek and
initiate similar stewardship programs in other areas. Without the ability to rely on volunteers and
conservation corps, the possibility of implementing these, projects is not reasonable or
foreseeable.
FINANCIAL IMPACTS
There isino direct financial impact to the City of Petaluma with the recommended
action. Failure of State adoption of AB 587 will affect implementation of future creek
restoration projects.
1. Resolution
2. AB 587 Fact Sheet
3. AB 587 — Support letter
4. California Assembly Bill No. 587
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Attachment 1
RESOLUTION AUTHORIZING THE MAYOR TO SIGN THE LETTER OF SUPPORT
F04�CALIFORNIA ASSEMBLY BILL 587 'RkLATING TO LEGISLATION THAT
WOULD EXTEND THE CURRENT PREVAILING WAGE EXEMPTION FOR
VOLUNTEERS AND CONSERVATION 'CORPS UNTIL .JANUARY 1, 2017
WHEREAS, prior to August 30, 2004,the CalforniaLabor Code required that, any work
performed by volunteers and Conservation Corps workers that could be defined as public works
be paid prevailing wages; and
WHEREAS, any community based. volunteer agency that utilized the volunteer services
of any person and failed to pay a prevailing wage was.subject to penalties imposed by the Labor
Code; and
WHEREAS, the State of California passed Assembly.Bil1(AB) 2690 effective August
30, 2004, adding Labor Code Section 1720.4, exempting volunteers working through qualified
tax - exempt non - profit agencies and /or California or Community Conservation Corps workers
from thel.prevailing wages requirement until January 1, 2009; and
,WHEREAS, the State of California passed AB 2537 in,'2008 extending sunset date of
Labor Code Section 1720.4 exception to January 1, 2012; and
WHEREAS, California Assemblymember Furtani Gordon has introduced AB 587 which
would extend the current prevailing: wage, exception for qualified volunteers and conservation
corps workers until January 1, 2017; and
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WHEREAS, the City of Petaluma has worked with volunteer agencies to perform works
which greatly benefit the community, the natural habitats of City creeks and the Petaluma River
environs.* and plans to continue to work with volunteer agencies in the future.
NOW, 'I HEREFORE, BE IT RESOLVED that the City Council of the City hereby:
1. Siupports the adoption of California AB 587.
2. Authorizes the Mayor to sign a letter of Support of AB 587
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Attachment 2
. AB 587 (Gordon, Furutara;i)
j Prevailing Wage Exemption: Volunteers
S UMMARY
AB 587 would extend (for five years =until Jan.
2017) the California public works prevailing
wage exemption for volunteers and conservation
corps members.
THIS RILL
Existing law generally requires all employees
who work.on public works projects10 be * paid the
prevailing rate of per diem wages for the location
where the public work is; to be performed.:
However, until January'1, 2012, the_ exempts
any wo tk performed by volunteers from the
public works wage requirement. AB 587 would
extend that exemption for an additional five
years.. qt a time when California is addressing
very serious fiscal deficits, extending this-sunset
provision will allow California to tap into one of
our greatest and most economical resources -
volunte'erism.
AB - 2537 (Chapter 678 Statutes of 2008)
exempted for three years all California
volunteers defined as individuals who perform
work for civic, charitable, or humanitarian
reasons for a publicagency or a qualified.non-
profit, as well as the California Conservation
Corps and certified Local Conservation Corps
from the public works prevailing wage
requirements.
The public�works prevailing wage exemption for
volunteers'and conservation corps sunsets on
January 1, 2012. AB 587 would extend that
sunset until;January 1, 2017.
• California Council of Land Trusts
' (sponsor)
• California Association of Local
Conservation Corps
• State Building and Construction Trades
Council
Prevailing wages must be paid to all workers
employed on a public works project when the
public works project is more than $1;000.
By exempting volunteers and conservation corps
members, the state is able to preserve
conservation corps and continue`to encourage
and promote volunteerism in'the state.
AB 2690 330,Statutes of 2004)
exempted for fiveyears all California voluriteers,
defined 'as. individuals who perform work for
civic, charitable, orhumanitarian reasons fora
public agency cr�a qualified, non- profit, as well as
the California Conservation Corps and certified
Local Conservation Corps•from the public works
prevailing wage requirements.
OPPOSITION
None received
Lucas Frerichs
Office, of Assemblymember Gordon
(91'6) 319 72021
lucas.frerichs dl asn i.ca.goy
of Assemblymember Rich Gordon
AB 587 FactSheet
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Attachment 3
April 6. 2010
The Honorable Sandre `R..Swanson.
Chair, Committee on Labor and Employment
California State.Assembly
State'Capitol`Room 155
Sacramento California
RE: AB 587(Gordon, .Furutani) SUPPORT
Dear Assemblymemher Swanson,
On behalf of the City of Petaluma, h am writing to ,support,AB 587(Gordon,
Furutani), legislation that would extend the volunteer and conservation corps public
works prevailing wage exemption until January 1, 2017.
State labor laws effective in 2003 had the affect of eliminating volunteer and
conservation corps involvement, on community projects that could be classified as
public works. The laws meant that volunteers that wanted to help enhance their
community through activities such as tree plantings or habitat restoration were
.required to be; paid a prevailing wage. A local °volunteer organization was fined
$33,000 in-2003 for failing to pay volunteers a prevailing wage for their service
restoring a local creek bed„
In 2004 the Legislature sought to correct thisunintended consequence of our
public works prevailing wage: law and. passed AB 2690, which exempted
volunteers and conservation corps from the prevailing wage requirement. As a
result of this legislation, Californians were able to 'serve in their' as
volunteers (that 'is, without being paid)': This bill contained a January 1, 2009
sunset date. In 2008, the Legislature passed AB 2537, which extended the
exempt -ion. sunset until January 1, 2012.
These past legislative efforts recognized the need for an exemption to the
prevailing °wage laws for important civic engagement and environmental
activities. The sunset dates were included to ensure against- abuses of the
exemption and to signal' a cautious and narrowly tai ilored° ap_ proach to providing
prevailing wage exemptions generally.
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AB 587 'would: extend the .exemption until January - 1,1017 to ensure that volunteers and
conservation corps can continue to help: better. their communities.
Thank. �ou for our consideration of this imp ortant issue.
Y,� Y p
'Sincerely,
I
David Glass
Mayor of Petaluma
c: The Honorable Mike Morrell
The Honorable Warren Furutani
The Honorable Mariko Yamada
The Honorable Luis A. Alejo
The Honorable Michael Allen
The Honorable Jeff Gorell
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f Attachment 4
CIALIF,ORNIA LEGISLATURE - 2011 -12 REGULARISESSION
ASSEMBLY BILL No. 587
Introduced by Assembly.Wrnbers Gordon and Furutani
February 16 2011
An act to
mend Section 1720.4•of the Labor Code, relating to public
works.
LEG ISLATIVE,COUNSEL'S DIGEST
AB 587, as introduced, Gordon. Public works: volunteers:
Existing law defines "public works," for purposes ofregplating public
worksl contracts, . as among Other things', construction, alteration ,
demolition, installation, or repair work that is performed under contract
and Paid forlin whole or in.part out of public, funds. Pursuant to existing
law, all workers . employed oft, public .works prejects are required'to be
paid not less than the general prevailing rate of per diem wages for
work, except as specified.
Existing w a volunteer, av coordinator, ol volunteer t
or
ba -membe oft e
p erformed` Y
California Conservdtion Corps 'or .a community conservation corps..
These provisions are effective only until January 1,20 12, and,as of that
date are repealed.
This bill would extend that repeal date to January 1, 2017,and.inake
technical, n`onsubstantive changes to that provision.
Existing. =law also requires the Director of Industrial Relations to
submit a report, to the, Legislature before January 1, 2011., regarding.
volunteers on public projects.
Is also repeal that provision.
This bill would r ,
This' bill. " would :make legislative findings and declarations
regarding the intent of the bill.
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AB 587
Vote: nil jor'ity. Appropriation: no. Fiscal committee : no.
State- mandated local program: no
The p eople -of the State of California do-enact as follows:
1 SECTION 1.. The Legislature finds and declares: all of the
(a) Ing. .
3 follow t is the intent of the Legislature that public works projects
4 ° shouldi never" ^undermine the "wage base in , a community: be
6 paid the. prevailing ate that
per them wages b ensures that th cts a
O i q p. p J
e local a
7 wageliase is not.lowered.
8 (c) It is�the 'intent of the Legislature that this; act shall not apply
9 to the work of state and local public sector employees.
10 SEC: 2. Section'l7.20.4 ofthe Labor .Code isiamended.to read.
11 1720.4. (a) This chapter shall not apply to any of the following
12 work:
13 (1) Any work performed by a volunteer. For purposes of this
an individual who performs work for
15 c vicicharitablee o"r humariitarian` reasoin; for a publie`agency. or
16 corporation qualified under Section 501(c)(3) of the Internal'
17 Revenue Code , as a tax- exempt. organization, without promise,
18 expectation, or receipt of any compensation for work performed.
19 - (A) An individual shal..,be, considered a volunteer only when
20 his or'her services are offered freely and without pressure and
21 coercion, direct. or implied, from an employer.
22 (B) An individual may receive reasonable .meals, lodging,
23 transportation, and incidental expenses or nominal nonmonetary
24 awards without losing volunteer status if, in the entire context of
25 the situation, those benefits and py
a .ments are not a substitute form
26 of compensation for°work performed.
27 (C) An individual shall not be considered a volunteer if the
28 person "Jis otherwise employed for compensation at any time (i) in
29 the construction, alteration,. demolition, installation, repair, or
30 maintenance work on'the same project, or (ii) by`a•contractor;;other
31 than a corporation qualifi ed under Section 561(c)(3) of the Internal ,
32. Revenue Code °a& a tax - exempt organization, that i's; receiving,
33 payment to perform construction, alteration, demolition,
34 installation, . repair, or, maintenance work on the same project.
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3; A&-587
l (2) Any work, performed by a volunteer coordinator: For
-: purposes of this .section, "volunteer coordinator" means an
3 individual paid by'a corporation qualified under Section 50,1(c)(3) .
4 of the Internal Revenue Code as a tax - exempt organizatiori,,to
5 oversee.or supervise volunteers. An mdividual.may be considered
6 a volunteer coordinator even if the individual performs some
.7 . nonsupervisory Work on a project alongside the volunteers, so. -long
8 as the individual's primary responsibility on, the project is to
9 oversee or supervise the, volunteers rather than to perform
O
10 nonsu members pervisory work.
11 3 Any work performed by mbe o,F the California
'12 $f C.onserwation Corps or. ` by Community Conservation .
13 certified by the California Conservation Corps pursuant to Section
14 14507:5 of the Public Resources Code.
15" li `This section., shall apply retroactively o' otherwise covered
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16 work concluded.on or after January 1, 2002, to the extent permitted
N by law.
18 ,
19
20
_
21 v6!ttnt6 an _
24
(9) Dr—ides an estit-Aate of ea6h of. the _ r
i
25
27 or . pvblip Works _. .
28 ,
29 C-eElt—. ,
30
31 merles -PrOl s-
32 - (B) The Post pet year of publieworks
33 tltlieessteese$
34 _
35
,,he, types of work done
36 7 • . S�etl%jll 21490 of the
39 •
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AB 587 h — 4
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This section s
4 (c) T hall remain in effect,only until January 1,�A -�2
5 2017, and as of that date s repealed , unless.a later enacted statute,
6 which_ is enacted before January 1, 2012 2017, deletes or extends
7 that date.
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