CITY OF POMONA
COUNCIL REPORT
February 5, 2024
To: Honorable Mayor and Members of the City Council
From: Anita D. Gutierrez, Acting City Manager
Submitted By: Rene Guerrero, Public Works Director
SUBJECT: CONSIDERATION OF A PROJECT LABOR AGREEMENT BY AND BETWEEN THE CITY OF POMONA AND THE LOS ANGELES/ORANGE COUNTIES BUILDING AND CONSTRUCTION TRADES COUNCIL AND THE SIGNATORY CRAFT COUNCILS AND UNIONS RECOMMENDATION:
It is recommended that the City Council consider directing Staff to meet and confer with the Los Angeles/Orange Counties Building and Construction Trades Council and bring a draft Project Labor Agreement template as well as an implementation strategy for the Council's consideration, within the next 90 days.
EXECUTIVE SUMMARY:
As requested at various City Council meetings in 2023, and after a brief presentation given to the Project Labor Agreement Subcommittee (Subcommittee) on December 11, 2023, the Subcommittee requested that the City Council be provided an opportunity to consider the preparation of the necessary documents and code amendments to require a Project Labor Agreement (PLA) for certain City construction projects. If directed, Staff shall return to City Council within the next 90 days with a standard PLA, the necessary code amendments, and any necessary analysis.
FISCAL IMPACT:
There is no fiscal impact at this time. However, the establishment of a PLA will have a fiscal impact for certain City construction projects in the future. Typically, a PLA will add 10% or more to project costs, and additional City Staff, or consultants, may need to be hired to administer the PLA.
DISCUSSION:
A PLA is a pre-hire collective bargaining agreement negotiated between construction unions and local agencies to establish terms and conditions of employment for construction projects. PLAs can be an effective tool to increase local participation and support equitable workforce development. Once a PLA is in place, a local agency will only hire contactors for City projects who agree to execute and be bound by the terms of the PLA. Essential elements of a PLA include:
Requirement for all contractors and subcontractors to be bound to the PLA, whether they are union or non-union.
Establishment of standard work rules, prevailing wages, hours and fringe benefits payment, and dispute resolution procedures.
Prohibition on strikes, work stoppages, and lockouts.
Promotes workforce development through establishing local hiring and disadvantaged worker employment opportunities.
The PLA, if accepted by the City and the Trade Councils, will become the policy of the City for certain construction projects to be performed on City property or within the public right-of-way. The City has the right to award contracts or subcontracts on projects falling under the PLA to any contractor notwithstanding the existence or non-existence of any agreements between contractor/subcontractor and Union parties, provided that the contractor is willing and able to execute and comply with the PLA if such work is covered by the PLA.
If approved, Staff, together with the City Attorney’s Office, will meet and confer with the Los Angeles/Orange Counties Building and Construction Trades Council over the next 90 days to review a PLA template and conduct any other analysis necessary for City Council’s review. The proposed PLA shall be in compliance with the requirements set forth under Section 2500 of the Public Contact Code to: (a) prohibit discrimination in hiring and dispatching workers for a project; (b) allow all qualified contractors/subcontractors to bid for and be awarded work on a project regardless of being a party to collective bargaining agreements; (c) guarantee against work stoppages, strikes, lockouts, and similar disruptions of work; (d) contain a protocol concerning drug testing for workers; and (e) provide that disputes arising from the PLA will be resolved by a neutral arbitrator. In addition, it is intended that the proposed PLA will be applied to 1-2 projects at a time that meet identified thresholds.
Prepared by:
Rene Guerrero
Public Works Director
Consideration of a Project Labor Agreement