TO: Board of Supervisors
FROM: Steven Lederer, Public Works Director
REPORT BY: Steven Lederer, Public Works Director
SUBJECT: Direction on use of a Project Labor Agreement for the Building Four Renovation Project
RECOMMENDATION
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Receive a presentation and provide direction on the possible use of a Project Labor Agreement for the project to renovate South Campus Building Four as part of our Facilities Master Plan. (Fiscal Impact: Indeterminate)
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BACKGROUND
At the Board of Supervisors meeting on July 9, 2024, Supervisors requested a report on the possible use of a Project Labor Agreement (PLA) on a future project, such as the renovation of Building Four at South Campus. The Board received this report on October 15, 2024. At the request of Supervisor Gallagher, staff has returned to the Board for direction as to whether to pursue a PLA for the Building Four project.
Previous Boards and Supervisors have conveyed an interest in the County’s use of PLAs, most significantly prior to construction of the re-entry facility, and then again prior to construction of the replacement jail. Previous Boards ultimately decided not to pursue a PLA due to the potential cost impacts to those projects.
Discussion as to the potential benefits and drawbacks of PLAs has occurred in detail in previous Board items:
Proponents claim that PLAs promote unions, and union labor, and ensure projects are completed on time and in accordance with state labor laws. Unions historically have been leaders in apprentice programs, which train new workers and thereby present a path into the construction field for those that might not otherwise have that path available. PLAs also supports development of the workforce needed for the industry in the future, which benefits the overall economy.
Opponents of PLAs claim that many studies show that PLAs increase project costs from 5%-15% because fewer contractors are willing to submit bids. PLAs often limit contractors’ ability to use their current employees to work on the project, instead requiring them to use workers from union hiring halls. It is not possible to firmly determine the cost of a PLA because the impact of contractors or subcontractors who chose not to participate cannot be analyzed (cannot analyze what did not occur).
Recommendation:
Providing a recommendation is challenging when it is uncertain how much a PLA for a particular project will impact the cost. However, staff believes that a decision to pursue a PLA, or not, are both valid policy directives for the Board’s consideration. If the Board concludes that the benefits to be achieved by a PLA outweigh any increased financial impact, staff recommends the Board direct the CEO, working with the Director of Public Works, to commence negotiations with the Napa Solano Building Trades Council specifically for the upcoming construction project to renovate Building Four at South Campus.
Procedural Requirements:
1. Receive Staff Report
2. Public Comment
3. Provide Direction
Requested Actions:
Provide direction whether to direct the CEO, working with the Director of Public Works, to commence negotiations with the Napa Solano Building Trades Council on a PLA for the construction of the Building Four renovation project at South Campus.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it Mandatory or Discretionary? |
Discretionary |
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Is the general fund affected? |
Yes |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Cod of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.