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April 15, 2025
ITEM TITLE
Agreements: Approving a Project Labor Agreement with the San Diego Building and Construction Trades Council, AFL-CIO, and Signatory Craft Councils and Local Unions Report Number: 24-0264
Location: No specific geographic location
Department: City Manager
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: This activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Adopt a resolution approving a Project Labor Agreement with the San Diego Building an d Construction Trades Council, AFL-CIO, and the signatory craft councils and local unions signing the agreement, applicable to City capital improvement projects with a cost of $1,000,000 or greater.
SUMMARY
On May 9, 2023, the City Council Labor Relat ions Ad Hoc Subcommittee issued a report on findings and recommendations to the City Council, including a recommendation to engage in a process to develop a citywide Project Labor Agreement with input from the San Diego Building and Construction Trades Council.
A Project Labor Agreement has been negotiated per this direction and is recommended for adoption.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with CEQA and has determined that the activity, entering into a Project Labor Agreement, is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
Thus, no environmental review is required.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
On March 28, 2023, the City Council approved the establishment of a Labor Relations Ad Hoc Subcommittee comprised of then Deputy Mayor Jose Preciado and Councilmember Andrea Cardenas (the “Labor Relations Subcommittee”). The Labor Relations Subcommittee held a series of meetings with various stakeholders to discuss issues relating to safety conditions and enhancements for traffic control workers, the potential need for a contractor transparency ordinance, and the process to adopt a citywide project labor agreement (“PLA”). On May 9, 2023, the Labor Relations Subcommittee issued a report and recommended that the City Council refer the following to the City Manager’s Office:
1. Draft a municipal code amendment to address safety conditions and enhancements impacting traffic control workers.
2. Develop a labor transparency ordinance to be consistent with similar policies across the County of San Diego, and identify City needs for ordinance enforcement.
3. Formally engage in the process to develop a citywide Project Labor Agreement (“PLA”) with input from the San Diego Building and Construction Trades Council.
The City Council supported the recommended referral at the May 9, 2023 meeting and directed the City Manager to return with a report on implementation within 90 days. Staff returned on August 8, 2023 with a report on implementation to date and a request for direction. At the August meeting, City Council directed staff to return with the following items on September 12, 2023:
1. A municipal code amendment requiring PLAs for projects that a) have a construction cost at time of contract award of $1,000,000 or more and are constructed on City-owned property; or b) are housing projects receiving $5,000,000 or more in funding from the City.
2. A municipal code amendment addressing labor transparency.
3. A municipal code amendment addressing safety conditions and enhancements by establishing a traffic control worker minimum wage.
4. A municipal code amendment establishing a minimum wage for healthcare workers.
Staff returned pursu ant to the City Council’s direction on September 12 th, and the City Council took the following actions:
1. Placed an ordinance on first reading amending Chapter 2.59 and addition Chapter 2.71 “Project Labor Agreements” of Title 2 of the Chula Vista Municipal Code.
2. Approved Resolution No. 2023 -137 adopting a City Council Policy relating to Project Labor Agreements on City Capital Improvement Projects.
3. Placed an ordinance on first reading adding Chapter 2.72 “Construction Contractor and Subcontractor Reporting” to Title 2 of the Chula Vista Municipal Code.
4. Placed an ordinance on first reading adding Chapter 2.73 “Traffic Control Worker Minimum Wage” to Title 2 of the Chula Vista Municipal Code.
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Second reading and adoption of No. 1 (Project Labor Agreements) and No. 3 (Contractor and Subcontractor Reporting) above occurred on September 19, 2023 (Ordin ance Nos. 3554 and 3555, respectively). No. 4 (Traffic Control Worker Minimum Wage) was modified on September 19th and placed on first reading again, with second reading and adoption occurring on October 3, 2023 (Ordinance No. 3557).
Project Labor Agreement
The final component of the original May 2023 referral is consideration of entering into a citywide PLA with the San Diego Building and Construction Trades Council, consistent with Chula Vista Municipal Code (“CVMC”) Chapter 2.71 (Project Labor Agreements) and City Council Policy 510-01 (Project Labor Agreements for City Capital Improvement Projects) (Attachment 1).
The proposed PLA would apply to all City capital improvement projects with an estimated construction cost at time of award of $1,000,000 or greater. In addition, pursuant to CVMC 2.71.040, Developers of 1) projects constructed on City -Owned Property with a construction cost of $1,000,000 or more at the time of construction contract award or 2) Subsidized Housing Projects receiving $5,000,000 or more in City or Housing Authority fund s shall also be required to enter into a PLA (capitalized terms as defined in CVMC Chapter 2.71). Such Developers shall have the option to negotiate a project -specific PLA or to sign onto a citywide PLA.
Staff recommends approving the PLA as presented, with an effective date of April 15, 2025. An initial term of 5 years and 2 months is proposed (to coincide with the end of the fiscal year) , with an optional 5 -year extension upon mutual agreement of the parties, for a total maximum term of 10 years.
Administering a citywide PLA may require significant staff effort. Initially, staff recommends contracting with a 3 rd party to act as the City’s Project Labor Coordinator , the City’s designee for pur poses of monitoring compliance with the PLA and assisting with developing, implementing, and administering the requirements, policies, and programs referenced therein. An RFP for such services will be issued following City Council approval of a citywide PLA. Staff will closely monitor this effort and may recommend allocating additional resources in the future, as appropriate.
With this action, the May 9, 2023 referral is complete. Staff will continue to implement the new ordinances, policies, and agreements that were adopted as result of the referral.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no quantifiable current -year fiscal impact as a result of approving a citywide PLA. As described in the August 8, 2023 staff report, there is am ple evidence indicating that PLAs contain costs, just as there is ample evidence indicated that PLAs result in higher construction costs. Actual fiscal impacts will likely vary P a g e | 4
based on workforce market conditions. Costs associated with Project Labor Coordinator services will be determined through a competitive procurement process.
ONGOING FISCAL IMPACT
There is no quantifiable ongoing fiscal impact as a result of approving a citywide PLA. As described in the August 8, 2023 staff report, there is ample evidence indicating that PLAs contain costs, just as there is ample evidence indicated that PLAs result in higher construction costs. Actual fiscal impacts will likely vary based on workforce market conditions. Costs associated with P roject Labor Coordinator services will be determined through a competitive procurement process.
ATTACHMENTS
1. City Council Policy 510-01 (Project Labor Agreements for City Capital Improvement Projects)
2. Proposed PLA with San Diego Building and Construction Trades Council Staff Contact: Tiffany Allen, Assistant City Manager