Item 322/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna-Reynosa
Dept:
City Manager Dept: Economic Development and
Housing
Date: 12/9/2025
Subject: Approval of a Successor Community Workforce Agreement with Los Angels and Orange Counties Building and Construction Trades Council and Signatory Craft Council and Local Unions. (Action Item)
OBJECTIVE
To consider approval of a Successor Community Workforce Agreement between the City of Garden Grove, and the Los Angeles and Orange Counties Building and Construction Trades Council (the “Trades Council”), and signatory Craft Councils and Local Unions.
BACKGROUND
On May 12, 2020 , the City Council approved a Community Workforce Agreement (“CWA”) with the intent to promote use of local workforce to complete construction projects and develop a pipeline of construction careers within local communities. The CWA established labor relations policies and procedures for the City and for the craft employees represented by unions engaged in certain public works projects. The CWA obligated the City to contract exclusively to contractors who agree d to execute and be bound by the terms of the CWA.
The City was required to include the requirements of the CWA in the advertisement and specifications for each public works contract, subject to the CWA, awarded by the City.
The City retained the ser vices of T he Solis Group (TSG) to perform CWA ser vices, labor compliance monitoring, and skilled and trained workforce monitoring. TSG provided monthly monitoring reports to the City. Of particular interest to the City, as expressed by the City Council when approving the CWA, were the local hire provis ions. Section 3.5 of the CWA established a local hire goal of 30%. The Local Area is broken up into three tiers as described below:
Tier 1 – Zip codes that make up the City of Garden Grove Tier 2 – Zip codes from any cities adjacent to Garden Grove Tier 3 – All of Orange County plus individuals that meet the following criteria:
o Veterans
o Graduates of high schools located in Garden Grove
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o Graduates of Building Trades Pre-apprenticeship programs o Disadvantaged individuals
The City requested TSG to provide a 5-year summary report (see Attachment 1). The below chart is a summary of performance as it relates to local hire:
DISCUSSION
The CWA was set to expire on July 24, 2025. The Trades Council and City initiated negotiations early in 2025. The term of the CWA was extended for six months until January 31, 2026 to allow additional time to negotiate. The proposed successor CWA (the “Successor CWA”) has a five year term and is generally consistent with the initial CWA.
The main difference between the Successor CWA and its predecessor is the inclusion of additional categories of projects subject to the Successor CWA. Previously, only public works projects included in the City’s Capital Improvement Plan (CIP) for Fiscal Year 2020-21 through 2024-25 under the categories of “Arterial Improvements”, “Residential Improvements”, and “Traffic Improvements” were subject to the CWA . In additio n to those categories, the Successor CWA also includes the following CIP categories; “Park Improvements”, Economic Development & Housing Improvements”, and “Facility Improvements”. Under the “Water Improvements” category the only project subject to the Su ccessor CWA is “Water Main Replacement (services, hydrants, meters, valves, etc.)”. Under the “Sewer Improvements” category the only project subject to the Successor CWA is “Sewer Main Improvements”.
Additional projects that were not previously subject to the CWA will be under the Successor CWA but it excludes the majority of Water and Sewer Improvement projects.
The hiring targets are consistent between the CWA and Successor CWA with the exception of projects funded by Community Development Block Grant (CDBG) funds. There are some explicit federal hiring requirements that have been incorporated into the Successor CWA.
The following exclusions remain consistent between the CWA and Successor CWA:
Professional, office and other non -manual employees (except for construction; and inspectors, field/soils and material testers, and field surveyors) Equipment and machinery operated by the City; and
Item 322/2025
Offsite manufacture and handling of materials; and
Work performed by City employees or by other governmental agencies; and Work with funding or grant restrictions.
FINANCIAL IMPACT
The financial impact of the Successor CWA is the cost for City staff and consultant to administer the CWA, including costs to retain and oversee TSG to monitor compliance with the Successor CWA. The City’s costs for TSG services under the CWA was approximately $35,000 for Fiscal Year 2024-2025. Since additional projects will be subject to the Successor CWA and a more aggressive CIP for Fiscal Years 25/26 – 29/30 has been adopted by the City Council, staff is anticipating a substantial increase in costs for TSG under the Successor CWA.
Staff will initiate the appropriate procurement process and bring a contract to City Council for approval with a term to correspond to the Successor CWA term. For purposes of understanding the potential fiscal impact associated with approving the Successor CWA, staff does not anticipate the TSG costs to exceed $100,000 per year.
RECOMMENDATION
It is recommended that City Council consider the following actions:
Approval of the Successor CWA with the LA/OC Building and Construction Trades Council; and
Authorize and direct the City Manager, or designee, to execute the Successor CWA on behalf of the City, and take any and all actions necessary to implement and administer the Successor CWA.
ATTACHMENT(S)
1. 5 Year Summary of Monitoring Reports
2. Successor Community Workforce Agreement (CWA)