California: Prevailing Wage Debate Haults Project
PALO ALTO ONLINE NEWS - With a challenge that could force the City of Palo Alto to begin paying its contractors higher wages, labor leaders are calling for the city to scrap plans to sign a routine contract for a pump-replacement project at the Regional Water Quality Control Plant.
The case has wide-ranging implications that could increase the costs of construction and maintenance projects at some city facilities.
Juan Garza, a senior compliance officer from the Joint Electrical Industry Fund of Santa Clara County, and other labor leaders say the city should reopen the bidding process for the project, this time pledging to pay "prevailing wage," a legal rate that is set by the California Department of Industrial Relations.
The issue split the Palo Alto City Council Monday, so it will be discussed again next week when Mayor Yoriko Kishimoto returns, giving the council an uneven number of votes.
The council had been scheduled Monday to approve an $859,000 contract with Anderson Pacific Engineering Construction, Inc. The project includes replacing recycled-water pumps, installing a storage tank and adding additional pipelines.
