TO: Board of Supervisors
FROM: Steven Lederer, Public Works Director
REPORT BY: Steven Lederer, Public Works Director
SUBJECT: Presentation of Project Labor Agreement
RECOMMENDATION
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Receive a presentation regarding the possible use of a Project Labor Agreement on a future project. (Unknown Fiscal Impact; Discretionary)
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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 4 at South Campus.
The Board has discussed the use of PLAs in the past, most significantly prior to construction of the re-entry facility, and then again prior to construction of the replacement jail. At the urging of a Supervisor who led the negotiations, the County entered into discussion with the Trade Unions for a PLA. The Board established specific goals for the negotiations, including a focus on local hiring and the use of local companies (many of whom were non-union). After several months of negotiations, the County and the Trade Unions concluded that a deal could not be reached which would meet the Board's goals and that would also be acceptable to the various Trades who would need to also agree. The Supervisor recommended that the Board terminate the negotiations, which they did.
The Board again considered engaging in PLA discussions prior to constructing the replacement jail, and again determined the time was not right for a PLA. The attached staff report from December 7, 2019 describes the discussion and reasoning of the Board at that time.
Additional information in support of and against use of PLAs is attached. On one key point, it is widely believed that PLAs increase cost (estimates range from 5-15%) because fewer contractors are willing to submit bids. Attached is a study that indicates in one case the cost was not higher. Unfortunately, there is no firm data on exactly how much a PLA may or may not incre...
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