Project Labor Agreements
OCTOBER 25, 2022
CITY COUNCIL
Assistant City Manager, Jason Nutt & City Attorney, Sue Gallagher 1 Recommendation
1.Adopt a Council Policy on Project Labor Agreements.
2.Delegate authority to the City Manager to negotiate,
execute and amend a Project Labor Agreement, in a form
consistent the Policy.
3.Delegate authority to the City Manager to adopt further policies and procedures to ensure efficient operational integration with the City’s CIP program.
2 Primary Objectives
PLA Program
1. Enhance the City’s highly skilled local workforce and increase access to apprenticeship programs to benefit
diversity, equity, and broader inclusion in the workforce;
2. Reduce carbon footprint by keeping local workforce local; and
3. Create positive economic impacts by re-investing capital improvement funds through the local workforce.
3 Key Policy Issues
July 2022 Council Discussion
• Scope of PLA Policy
• Project Threshold for PLA
• Project Type
• Local Labor Definition
• Local Hire Incentives and Definitions
• Inflation or Escalation Factor
• PLA Program Term and Revisit Date
• Options to proceed where PLA Agreement cannot be reached. 4 Key Policy Issues
Proposed Approach
Scope of the PLA Program
- Both Horizontal and Vertical City projects
PLA Project Threshold
-$3M
Project Type
INCLUDE: construction craft work
EXCLUDE: trucking/hauling, CM/inspection/managerial work, certain project categories (slurry seal) where union density or local presence is still developing
5 Key Policy Issues
Proposed Approach
Local Labor Definition
- Sonoma, Marin, Napa, Lake Mendocino
Local Hire Incentives and Definitions
- 30%
Inflation or Escalation Factor
- given revisit date, do not propose inclusion
PLA Program Term and Revisit Date
- Jan 1, 2024 start date, revisit in 3 years
6 Key Policy Issues
Proposed Approach
Options to Proceed where PLA agreement cannot be
reached:
No Blanket Approach, Instead Propose Targeted Policy
Exceptions:
- Federal, State, Other Funding Prohibits PLA
- Grant funding deadlines
- Emergency/exigent circumstances
- Negative Impact on Project Delivery
7 Council Action Today
Adopt Council Policy for PLA Program to guide PLA with any Council recommended adjustments
Makes PLA requirement applicable to City CIP Projects, $3M and over starting 1/1/24, with 30% local requirement
**Excludes Trucking/Hauling, CM/Inspection/Managerial
Work, Certain Project Categories (e.g. Slurry Seal)
8 Council Action Today
Delegate authority to the City Manager for key aspects of PLA Program implementation to prepare for 1/1/24 launch, including:
- Negotiate Master PLA Agreement using SR City Schools Model as Base - Develop any necessary internal policies and procedures to integrate PLA with existing CIP process
- Continue meetings with key internal and external stakeholders to refine PLA Program and return to Council as necessary to update PLA Policy in advance of 1/1/24
9 Recommendation
1.Adopt a Council Policy on Project Labor Agreements.
2.Delegate authority to the City Manager to negotiate,
execute and amend a Project Labor Agreement, in a form
consistent the Policy.
3.Delegate authority to the City Manager to adopt further policies and procedures to ensure efficient operational integration with the City’s CIP program.
10 Questions
11 City Projects
12 PROJECTEDCity Projects
13 Example Projects over $5M July 2023-July 2026
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