ARIZONA NEWS

Tempe City Council approves new prevailing wage ordinance

May 19, 2024, 7:15 AM

Tempe...

Tempe City Council approved the establishment of a prevailing wage ordinance on May 9 with a 5-1 vote. It ensures wage standards for workers. (KTAR News file photo)

(KTAR News file photo)

PHOENIX — Tempe City Council approved the establishment of a prevailing wage ordinance on May 9 with a 5-1 vote.

The new ordinance ensures that workers involved with City of Tempe construction projects are compensated fairly, according to a press release. The ordinance establishes wage standards for workers on projects valued at more than $4 million.

The release states that the wage for each position is determined by the U.S. Department of Labor under the provision of the Davis-Bacon Act.

The Davis-Bacon Act is a federal law that establishes the requirement for paying the local prevailing wages on public works projects for laborers and mechanics.

It is estimated the new prevailing wage ordinance may increase costs to the city from approximately 2.3 percent to seven percent annually, based on an independent consultant’s report that was included in the release.

Using the 2023-24 fiscal year as an example, the costs to the city would go from $2.4 million to $7.3 million.

“While no one would say that the millions this will cost is a small amount of money, it is a small amount to ensure the equity and fair treatment of the workers who build our city projects,” councilmember Randy Keating said in the release.

The City of Tempe had been evaluating the need for a prevailing wage ordinance since 2019.

Councilmember Doreen Garlid was the lone vote against the ordinance. The release says that she voted against the ordinance because of the additional costs, with Tempe preparing for budget reductions due to the repeal of the $21 million in residential rent tax. She also feels it’s likely a lawsuit that would come with its adoption.

“I support the fair treatment of the men and women who build our community,” she said in the release. “But passing this ordinance will pull our city into an existing lawsuit that will cost hundreds of thousands of dollars. Those legal fees will be 100% borne by the residents of Tempe at a time that I believe we need to be prudent.”

The cities of Phoenix and Tucson are currently being sued over their prevailing wage ordinances.

The ordinance will be located in Chapter 26 A of Tempe City Code, according to the release. Failing to follow the new ordinance could result in the suspension of a contractor from responding to solicitations for all city construction contracts for one year.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

fatal shooting southeast Phoenix one man dead...

Payne Moses

Police investigating fatal shooting that left 1 man dead in southeast Phoenix

Phoenix police are investigating a fatal shooting in southeast Phoenix on Friday that left one man dead. The incident is being viewed as an act of self-defense.

60 minutes ago

Phoenix woman hit killed by car West Phoenix...

Payne Moses

Woman dead after hit by car while crossing street in west Phoenix

An adult woman was struck and killed by a car on Friday while crossing a street in west Phoenix, authorities said.

2 hours ago

I17 Bumble Bee bridge ADOT construction Feb. 10-12 overnight...

Payne Moses

I-17 overnight closures next week to remove old Bumble Bee bridge

The southbound Interstate 17 will be closed overnight from Monday to Wednesday due to scheduled reconstruction of the Bumble Bee bridge.

3 hours ago

asthma GSK Arizona AG Kris Mayes sues for exploiting drug maker...

Payne Moses

Arizona AG accuses asthma drug maker of scheming to avoid Medicaid rebates

Arizona Attorney General Kris Mayes on Thursday sued drug producer GlaxoSmithKline (GSK) for harm done to asthma patients by discontinuing a long-time product.

5 hours ago

According to a recent study, film production in the metro Phoenix area generated $29.1 million in e...

David Veenstra

2024 film projects made $29.1M in economic impact on Phoenix area, new report says

According to a recent study, film production in the metro Phoenix area generated $29.1 million in economic impact in 2024.

7 hours ago

Tucson border patrol...

Roxanne De La Rosa

3 men arrested near Tucson after fleeing from Border Patrol

Tucson Border Patrol agents arrested three men on Tuesday near the southern border, after they tried to flee from law enforcement.

8 hours ago

Sponsored Articles

...

Asset Preservation Wealth & Tax

How to optimize the most money in 2024 tax returns

As tax season begins, getting your financials in order is important to maximize your tax return.

...

Fiesta Bowl Foundation

Join us for the 52nd annual Vrbo Fiesta Bowl Parade

The 52nd annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe returns on Saturday, December 28, at 10 a.m.

...

Bright Wealth Management

How to save money on retirement planning following 2024 election

PHOENIX -- With the 2024 election over, economic changes could impact how people plan for retirement as 2025 is on the horizon.

Tempe City Council approves new prevailing wage ordinance