TITLE
Recommendation to receive and file the Project Labor Agreement (PLA) Cumulative Report through February 2019 on the progress of the City’s PLA application and administration. (Citywide)
DISCUSSION
On April 7, 2015, the City Council authorized the City Manager to execute a Citywide Project Labor Agreement (PLA) between the City of Long Beach (City), the Los Angeles/Orange Counties Building and Construction Trades Council, and the signatory Craft Councils and Local Unions, for a period of five years. The PLA applies to all covered projects over the threshold amount of $500,000, subject to State and Federal or other funding restrictions. At that meeting, staff was requested to return to the City Council at the three-year mark to report on progress.
Since its approval and implementation, the PLA has been applied to 25 projects totaling over $146 million in construction value. The PLA to date is performing well, having exceeded both its 40 percent local hire goal and 10 percent disadvantaged/veteran resident goal. Based on current status, a cumulative attainment of 77 percent of total work hours are from workers with Los Angeles and Orange Counties for a total of 180,972 work hours, and 12 percent of work hours is performed by disadvantaged or veteran residents for a total of 28,565 hours of work. Additionally, PLA administration costs are within the original estimate of 1 percent of contract award.
Staff has prepared a written report (Attachment), which includes: an executive summary; overviews of the PLA provisions, covered projects, the administrative process and costs, and certain challenges encountered in the bidding process; and, reporting on compliance with PLA requirements and goals.
This year, management of the PLA will be transitioning from the Department of Financial Management to the Department of Economic Development, Workforce Development Bureau (Pacific Gateway), to enhance outreach to underrepresented workers in the Long Beach community. The work will be led by a Construction Programs Manager who will further integrate PLA contractor compliance monitoring with Pacific Gateway support services that promote a continued focus of outreach to underrepresented workers in the Long Beach community, vocational training, employment placement, and wrap-around support services to promote successful ongoing employment.
This matter was reviewed by Deputy City Attorney Amy R. Webber on March 27, 2018 and by Finance Director John Gross on March 26, 2019.
TIMING CONSIDERATIONS
City Council action on this matter is not time critical.
FISCAL IMPACT
There is no fiscal or local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER