Project Labor Agreements
introduction to policy considerations
February 8, 2022
ECONOMIC DEVELOPMENT SUBCOMMITTEE
Economic Development Division | City Attorney’s Office | Public Works Department 1 Intention
• To encourage the use and development of a local workforce. • To ensure projects are built on time, on budget, and to specification without delays or cost overruns.
• Consistency with existing state and federal law, grant requirements, and in the interest of the public.
2 Policy Research:
market placement & considerations
Models: Agreements, Policies, Approach
• Local
• County of Sonoma (2014)
• Comparable Cities (size and adjacent markets)
• Other Cities (larger cities or other markets)
Other Initial Research
• Federal and State requirements
• Grant funding considerations
3 • Hayward (2017) • Berkeley (2015) • Fairfield (2014) • San Jose (2019) • Goleta (2021)
4 Capital
Improvement
Projects
PW Infrastructure
roads, sidewalks,
public right-of-way
Facilities
city buildings & systems
Water Projects
sewer, treatment
plant, pump stations
Policy
Considerations
5 Project
Labor
Agreement
Project $
Threshold
Types of
Projects &
Method of
delivery
Project Cost &
Delivery
Tolerance
Local Market
Conditions
Contingencies
& Flexibility
Admin Cost &
Capacity
Pilot
Approach
Classes
of
Workers
Constr.
Cost v.
Total
Cost
Worker
Supply &
Training
Constr.
Activity
Project
Type v.
Labor
Resources
Sunset/
Revisit
Date
ROW
Projects
Inflation
Factor
Funding
Source
City CIP Agreements : Existing Provisions
• Prevailing Wages set by CA Labor Code
Hourly wage rate of per diem wages set forth in the prevailing wage rate schedule
• Apprentice Requirements set by CA Labor Code
Ratio not less than 1 hour of apprentice work for each 5 hours of journeyman work
• Liquidated damages
Contractor pays City liquidated damages for each day delay over and above the number of working days prescribed for finishing the work in the amount shown of the Standard Specifications.
6 Discussion & Recommendation
7 • Process and timeline
• Threshold
• Type/Method
• Cost/Delivery
• Pilot Approach
• Key parameters and criteria
• Outreach / engagement
March
April
May
June
July
August
September
Recommendation:
Provide policy direction to staff
on whether to pursue possible
adoption of a PLA requirement for
certain City projects.
• Market Conditions
• Contingencies
• Admin Cost/Capacity