Report Prepared by: Craig J. Cornwell City Attorney
Title
SUBJECT: Approval of a Resolution Approving the Project Labor Agreement for the City of Merced and Authorizing the City Manager to Execute the Project Labor Agreement with the Valley Building and Construction Trades Council and Local Unions
REPORT IN BRIEF
Considers approving a Resolution approving the Project Labor Agreement for the City of Merced and authorizing the city manager to execute the Project Labor Agreement with the Valley Building and Construction Trades Council and Local Unions.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving Resolution 2024-101, a Resolution of the City Council of the City of Merced, California, Approving the Project Labor Agreement for the City of Merced and the Valley Building and Construction Trades Council and Local Unions; and,
B. Authorizing the City Manager to Execute the Project Labor Agreement.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than as recommended by staff; or,
3. Deny; or,
4. Continue to a future meeting.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2024-25 Adopted Budget.
DISCUSSION
A Project Labor Agreement (“PLA”), also known as a Project Stabilization Agreement, is a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment on construction projects. The purpose of a PLA is to facilitate the delivery of the project with minimal labor-related disruptions which would adversely impact the public and/or delay the project. PLAs are often used on large, complex, long-term, multi-craft construction projects to achieve certain project objectives, such as avoiding labor disruptions, ensuring timely completion of the project, and providing employment opportunities for local residents.
The PLA between the City of Merced and the Valley Building and Construction Trades Council (“Trades Council”) and Local Unions includes the following key characteristics:
• Applies to City-contracted Public Works where either the engineer’s estimate of the total cost or the cumulative bid amount submitted by the Contractor awarded the Construction Contract exceeds $1,000,000, as well as non-City-contracted Public Works where the City contributes funding in an amount exceeding $1,000,000.
• Applies to and is limited to all Contractors (including subcontractors at any tier) performing Construction Contracts on a Project, the City, the Trades Council and the Unions signatory to the PLA.
• Covers all site preparation, surveying, construction, alteration, demolition, installation, improvement, remediation, retrofit, painting or repair of buildings, structures and other works, and related activities that are within the craft jurisdiction of one of the Unions and that are directly or indirectly part of a Project.
• To the extent allowed by law, and consistent with the Unions’ hiring hall provisions, and if they possession the requisite skills and qualifications, City residents and Merced County residents (including journeypersons and apprentices) shall be referred for the Covered Work as defined in the PLA.
• Utilizes the services of the Center for Military Recruitment, Assessment and Veterans Employment (“Center”) and the Center’s “Helmets to Hardhats” program, with the goal of facilitating the entry into the building and construction trades of veterans who are interested in careers in the building and construction industry.
• Specifies a six-year (6) term that requires the parties meet six (6) months prior to the expiration to discuss the operation of the PLA and whether it should be extended.
It is requested that the City Council authorize the City Manager to execute the Project Labor Agreement with the Valley Building and Construction Trades Council and Local Unions.
IMPACT ON CITY RESOURCES
There is no specific fiscal impact for this action.
ATTACHMENTS
1. Resolution 2024-101
2. Project Labor Agreement