Project on hold over prevailing wage debate

City-funded public works projects ready to go to bid may be put on

hold until the City Council reevaluates the city’s practice of paying its

workers set, premium wages.

The council voted 5-2 Monday night not to begin the bidding process

for the $7.5-million Overmyer reservoir renovation project until it has a

chance to study the prevailing wage issue.

The decision came after Vice Mayor Ralph Bauer called a halt to

discussions on the reservoir project, suggesting that the city could save

a large chunk of taxpayer money by eliminating the need to pay prevailing

wage first.

Prevailing wage rates, which in Orange County range from about $35 to

$41 an hour, are set using a formula that take into account what the

majority of workers in a profession make in an area and bump it up so

they might afford to live comfortably in that area.

The California Labor Code requires the payment of prevailing wages on

public works projects of $1,000 or more.

As a charter city, however, Huntington Beach can opt out of the

prevailing wage law for city-funded projects simply by passing an

ordinance.

Bauer had asked city staff at the last council meeting to prepare a

report on the issue.

Now Bauer has asked that until that report is delivered and a decision

made, any locally funded public works projects within the city --

including the remodeling the first floor of City Hall, drainage

improvements, sewer slip lining and rehabilitation of the Overmyer

Reservoir -- be put on hold.

Council members Shirley Dettloff and Connie Boardman opposed Bauer’s

motion, arguing that they don’t want to see every public works project

put on hold.

Bob Beardsley, the city’s director of public works, urged the council

to make a decision in the next 60 days.

“We can’t let this drag on for a year,” Beardsley said. “That

reservoir needs work and we need to get it established.”

The reservoir is at the southwest corner of Garfield Avenue and

Huntington Street. The project calls for the demolition of two reservoirs

built in the 1960s and the rehabilitation of a third reservoir built in

1971. The reservoirs provide drinking water storage for the city.

Any project that is federally or state funded is subject to prevailing

wage, so those projects could still go forth.