Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute an Agreement to Extend the Term of the Community Workforce Agreement with the Alameda County Building and Construction Trades Council and its Affiliated Local Unions Governing Labor Procedures for City Construction Projects
Staffreport
SUMMARY AND RECOMMENDATIONS
Authorize the City Manager to execute a side agreement to modify and extend the term through January 1, 2026 of the Community Workforce Agreement (CWA) with the Alameda County Building and Construction Trades Council (BTC), which governs labor procedures for City construction projects valued at or above $1,000,000.
BACKGROUND
On June 15, 2015, the City Council approved adoption of the Community Workforce Agreement (CWA) negotiated with the Alameda County Building and Construction Trades Council (BTC) and its affiliated local unions to govern labor procedures for City construction projects valued at or above $1,000,000. Further, the Agreement set in place policies and goals related to the hiring of San Leandro residents to work on City construction projects and the hiring of San Leandro residents into the signatory unions’ apprenticeship programs. The three-year term of the CWA began on January 1, 2016. City Council approved a twelve-month extension on December 17, 2018. On December 16, 2019, City Council approved a two-year extension to December 31, 2021.
The basic provisions of the CWA agreement with the BTC are as follows:
Covered Work: The work covered under the draft CWA includes all on-site construction, demolition, alteration, painting or repair of buildings, structures, landscaping, temporary fencing and other related activities for the projects that is within the craft jurisdictions of one of the signatory unions and that is part of the projects, including, pipelines, site preparation, survey work, and demolition.
The agreement does not apply to projects for which there is a prohibition, exclusion or other limitation imposed because of a grant requirement, funding source agreement, or other agreement that creates a risk to the City of any repayment or return to source of any funds received.
Construction contracts that are governed by the CWA are still subject to competitive bidding laws and prevailing wages; the City is required by law and its own ordinances to select the lowest responsive and responsible bidder.
Minimum Cost Threshold: The CWA applies to City construction projects whose value meets or exceeds $1,000,000.
Labor Peace: For all projects covered by the CWA, BTC agrees that there will be no strikes, sympathy strikes, work stoppages, picketing, hand billing, or slowdowns of any kind, for any reason, on the projects, at a project job site or at any other facility of the City.
Union Hiring Hall and Impact on Non-Union Contractors: Contractors working on covered projects are required, when filling craft job requirements, to utilize and be bound by the registration facilities and referral systems authorized by the signatory unions, commonly referred to as the union hiring hall.
The agreement does not prohibit non-union contractors from bidding on projects. However, the CWA allows non-union contractors to use no more than five of their own employees and only if those workers are San Leandro residents and an equal number of union workers are also retained by the contractor. This is known as the “Core Worker” provision. Non-union “core” workers hired under this provision are still required to register with the union hiring hall and the non-union contractor is required to pay into the union trust fund, covering health and pension benefits for these workers.
Local Hire and Apprentices: The current CWA has a goal of 10% participation by San Leandro residents as apprentices on construction projects that are covered by the CWA. Contractors are required to make good faith efforts to reach this goal through utilization of the BTC affiliated Unions' hiring hall procedures. The agreement also requires contractors to hire one San Leandro resident as a New Apprentice for the first $1 million of the bid amount. A New Apprentice is defined as a San Leandro resident who is indentured in a State of California approved apprenticeship program that is a joint labor-management apprentice program for no more than twenty-four months. Thereafter, for every $5 million of project monies, the contractor would be required to hire one additional New Apprentice. The intent of the clause is to increase pathways for San Leandro residents into the building trades. For San Leandro journeymen-level workers, the CWA sets a 20% goal of total project hours, for a total local hire goal of 30%. After the contractor uses the Unions’ hiring hall procedures and if qualified workers from San Leandro are not available, workers who reside in Alameda County can be hired to meet the apprentice goal of 10% and the journeymen goal of 20%.
Current Agency Policies
• Place San Leandro on a firm foundation for long-term fiscal sustainability
• Advance projects and programs promoting sustainable economic development, including transforming San Leandro into a center for innovation
• Maintain and enhance San Leandro’s infrastructure
Previous Actions
• On February 10, 2015, the City Council held a Work Session to review options related to the adoption of a potential CWA and receive feedback from stakeholders
• On April 20, 2015, the City Council adopted Resolution No. 2015-086, appropriating $100,000 in one-time funding for outreach and implementation of a CWA
• On June 15, 2015, the City Council adopted Resolution No. 2015-104 and approved the Community Workforce Agreement that was negotiated with the Alameda County Building and Construction Trades Council (BTC) and its affiliated local unions to govern labor procedures for City construction projects valued above $1,000,000
• On May 16, 2016, staff provided an update on implementation of the CWA
• On December 5, 2016, staff provided an update on the first year of projects constructed under the CWA
• On December 17, 2018, the City Council adopted Resolution No. 2018-161 and approved a twelve-month extension of the original terms of the CWA
• On December 16, 2019, the City Council adopted Resolution No. 2019-203 and approved a two-year extension of the modified terms of the CWA
Committee Review and Actions
• At meetings on March 17, 2015 and April 21, 2015, the City Council Finance Committee discussed the CWA and indicated support for bringing the item back to the City Council for adoption
• On March 7, 2017, staff updated the City Council Finance Committee on the implementation of the CWA and subsequent impact on City projects
• On December 5, 2018, staff updated the City Council Facilities and Transportation Committee on the ten projects awarded under the first term of the CWA
• On December 4, 2019, staff updated the City Council Facilities and Transportation Committee on the negotiations and recommendations for a potential next term of the CWA. The committee accepted the recommendations and noted that San Leandro Unified School District should be part of the partnership with the BTC, particularly as an integral part of the pipeline to the pre-apprentice programs
Legal Analysis
The City Attorney’s Office reviewed the proposed side letter and approved it as to form.
Fiscal Impacts
No fiscal impact is anticipated.
ATTACHMENTS
• A: Draft Resolution
• B: Draft Agreement
PREPARED BY: Sheila Marquises, Public Works Director, Public Works Department