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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: SEPTEMBER 24, 2024
FROM: PUBLIC WORKS AND PUBLIC UTILITIES DEPARTMENTS
SUBJECT: APPROVAL OF THE SECOND AMENDED AND RESTATED
COMMUNITY WORKFORCE AGREEMENT (CWA)
ATTACHMENT (Y/N): YES ITEM # 18
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1. Determine that certain construction and rehabilitation projects to be performed under the Community Workforce Agreement shall be categorically exempt under the California Environmental Quality Act (CEQA), Sections 15301, 15302, 15303, and/or 15304 of Title 14 of the California Code of Regulations;
2. Approve the Second Amended and Restated Community Workforce Agreement (“Second Amended CWA”) for a ten year term between the City of Anaheim (“City”) and the Los Angeles/Orange Counties Building and Construction Trades Council and the signatory Craft Councils and Local Unions (collectively the “Trades Council”);
3. Authorize the Public Works Director or designee, on behalf of the City, to execute the agreement, periodically update CWA attachments, and take any and all actions as are necessary or advisable to implement and administer the CWA; and,
4. Authorize de minimis changes that do not substantially change the terms and conditions of the CWA, as determined by the City Attorney’s Office.
DISCUSSION:
On December 3, 2019, City Council approved the first Community Workforce Agreement (First CWA) between the Trades Council and the City of Anaheim under a five-year term. The First CWA was then submitted to City Council for amendment on October 5, 2021, to eliminate language on residency requirements with respect to contractor’s core employees, which resulted in the Amended and Restated Community Workforce Agreement (Amended CWA). In advance of the Amended CWA expiration in December 2024, Staff from the Anaheim Public Works Department, Anaheim Public Utilities, and City Attorney’s Office met with the Trades Council to negotiate a new agreement. Following these negotiations, the City is proposing the Second Amended CWA for City Council consideration.
Approval of Second Amended and Restated Community Workforce Agreement (CWA) September 24, 2024
BACKGROUND:
CWAs are intended to increase the use of local workforce to complete construction projects and develop sustainable construction careers for those living within the City and surrounding community. The agreements are used to establish local hiring goals which, while aspirational, are intended to encourage and promote local hiring by private contractors who are bidding on publicly funded projects. While these hiring targets and other related conditions are negotiable, it is noteworthy that wage rates are established according to prevailing wage determinations set by the California Department of Industrial Relations, and not by the CWA.
During negotiations between the City and the Trades Council, the previous agreement was refined to better align with the City and Trade Council’s current goals to encourage hiring of a local workforce. The below table outlines the key changes that were made to develop the Second Amended CWA.
CWA Category Amended CWA
(current term - 2019-2024)
Second Amended CWA
(Proposed term - 2024 - 2034)
Project Minimum
Thresholds
Project list based on Capital
Improvement Program
$500,000 for multi-trade projects
$200,000 for single-trade projects
Duration of the
Agreement
5 years 10 years
Local Hiring
Targets
35% hours from the following
target groups:
Anaheim and Orange
County residents
Veterans, regardless of
residency, primarily
through the Helmets to
Hardhats program
Graduates of high schools
in Anaheim, regardless of
residency
Disadvantaged
individuals, regardless of
residency in Orange
County, including
formerly homeless or
referrals from non-profit
organizations such as
Chrysalis Orange County
or The Salvation Army
40% hours from the following tiered
system:
Tier 1 – Residents of Anaheim,
and veterans regardless of
residency, primarily through the
Helmets to Hardhats program
Tier 2 – Residents of the
surrounding cities of Buena Park,
Yorba Linda, Placentia, Fullerton,
Cypress, Stanton, Garden Grove,
and Orange; graduates of high
schools located in Anaheim,
regardless of residency;
individuals who have completed a
Building Trades pre-apprentice
program, regardless of residency.
Tier 3 – All other residents of
Orange County; Disadvantaged
individuals, regardless of
residency in Orange County,
including formerly homeless or
referrals from non-profit
organizations such as Chrysalis
Orange County or The Salvation
Army
Approval of Second Amended and Restated Community Workforce Agreement (CWA) September 24, 2024
Using a dynamic project list, the current CWA applied to approximately 88% of the City’s total Capital Improvement Program (CIP) construction projects during the FY2019/2020 – FY2023/2024 period. The change in the Second Amended CWA from a project list to minimum dollar thresholds is estimated to increase the number of eligible CWA construction projects to approximately 97% of the City’s CIP. As shown below, the current local hire rate is reported at 30%. Increasing the applicability of the CWA is anticipated to assist the City in reaching or exceeding the new 40% local hire goal.
To assist in administering the Second Amended CWA, the City will continue to utilize its on-call consultants to track labor hours, conduct pre-job conferences, verify certified pay roll, and ensure compliance with the agreement. Administration costs for the City and contractor have averaged about 1% of the total project budget, and these costs are not expected to change for the Second Amended CWA.
During negotiations, the City team sampled corresponding targets and thresholds for similar cities to ensure fair and competitive targets were achieved. Below is a summary of some of the categories that were reviewed.
Agency Project Threshold Local Hire Target Term (years) Santa Ana $750,000 for multi-trade
$100,000 for single-trade
30% 10
Irvine $500,000 for multi-trade
$150,000 for single-trade
30% 5
Moreno
Valley
$1,000,000 for multi-trade
$1,000,000 for single-trade
30% 5
Long Beach* $750,000 for non-street/right of way
$1,000,000 for street/right of way
40% 10
*Note the City of Long Beach uses a Project Labor Agreement (PLA) Approval of Second Amended and Restated Community Workforce Agreement (CWA) September 24, 2024
Conclusion
The proposed CWA will provide opportunities for local residents to gain sustainable employment in the local community. Using project thresholds will ensure that administration costs will remain relatively minor and minimize the impact on smaller construction firms.
ENVIRONMENTAL REVIEW:
Since certain CWA projects will typically consist of construction and rehabilitation work, they fall within one or more of the following CEQA Categorical Exemptions: Section 15301, Section 15302, Section 15303, and/or Section 15304 of Title 14 of the California Code of Regulations.
IMPACT ON BUDGET:
Work awarded to a contractor consistent with the proposed CWA will be included in various departments’ annual budgets, which are subject to City Council approval.
Respectfully submitted, Concurred by, Rudy Emami Dukku Lee Public Works Director Public Utilities General Manager Attachment:
1. Second Amended and Restated Community Workforce Agreement