REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of April 9, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Christina Lawrence, Special Counsel
SUBJECT: Resolution of the City Council approving the Project Stabilization Agreement for the City of Hercules and Authorizing the City Manager to Execute the Project Stabilization Agreement with the Contra Costa County Building and Construction Trades Council and Local Unions RECOMMENDED ACTION:
Adopt a resolution approving the Project Stabilization Agreement for the City and Authorizing the City Manager to execute the Project Stabilization Agreement with the Contra Costa County Building and Construction Trades Council and local unions BACKGROUND:
On August 8, 2023, the City Council directed staff to schedule a discussion regarding project labor agreements for City construction projects. On October 3, 2023 and November 14, 2023, the City Attorney and staff provided the Council with a general overview of project labor agreements and responded to the Council’s requests for further information. Following the presentation on November 14, 2023, the City Council authorized the City Manager to begin negotiations on a Project Stabilization Agreement with the Contra Costa County Building and Construction Trades Council, and directed staff to include in the terms of the PSA the following: (1) all City of Hercules construction and maintenance projects with a total value of one million dollars ($1,000,000) or more, (2) no core employees, (3) a term of five years, and (4) a rollover/termination clause option at the end of the five year terms.
City staff has since met with the Contra Costa County Building and Construction Trades Council and negotiated a Project Stabilization Agreement for the City of Hercules that reflects Council’s direction. The proposed Project Stabilization Agreement is attached hereto as Exhibit 1 to Attachment A.
DISCUSSION:
A project labor agreement or project stabilization agreement (collectively referred to herein as a “PSA”) is a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment on construction projects. PSAs are often used on large, complex, long-term, multi-craft construction projects to achieve certain project objectives, such as avoiding labor disruptions, ensuring timely completion of a project, and providing employment opportunities for local residents. Several public agencies around the country, state, and region have adopted project-specific or agency-wide PSAs, including the nearby cities of Martinez, Richmond, El Cerrito, and Pinole.
City staff and the City Attorney’s office have negotiated a PSA with the Contra Costa County Building and Construction Trades Council that includes the following key characteristics:
Applies to City projects, funded in whole or in part with City funds, that have a total project cost of $1,000,000 or more. Maintenance work that is performed for the City’s Landscape and Lighting Assessment Districts that is contracted for on an annual basis and where the contract is for less than $1,000,000 is excluded from the scope of the agreement.
Includes workforce referral and hiring hall procedures that preclude the use of “core employees.” Specifies a five-year term; requires that the parties meet at least six months prior to the five-year anniversary to discuss the agreement, any proposed changes, and whether each desire to extend the agreement; provides that the City will present to the City Council on the status of the agreement; and absent changes or termination, the agreement will roll over for an additional five years.
Provides that it is the objective of the parties that at least 25% of the total hours worked on a project will be performed by residents in the local area, which is defined to include West Contra Costa County.
The PSA also includes the taxpayer protection provisions required by Public Contract Code § 2500, including provisions that prohibit discrimination; guarantee against work stoppages, strikes, lockouts, and similar disruptions on a project; permit all qualified contractors to bid for and be awarded work on a project; include agreed-upon drug testing protocols for workers employed on a project; and provide that disputes arising from the PSA will be resolved by a neutral arbitrator.
CONCLUSION:
Staff and the City Attorney’s office recommend that the City Council approve the Project Stabilization Agreement for the City of Hercules, attached hereto as Exhibit 1 to Attachment A, and authorize the City Manager to execute the agreement with the Contra Costa County Building and Construction Trades Council and local unions.
FISCAL IMPACT:
There is no specific fiscal impact to this action.
ATTACHMENTS:
Attachment A – Draft Resolution
Exhibit 1 – Project Stabilization Agreement for the City of Hercules