6a supp
ITEM NO: 6a_supp MEETING DATE: September 27, 2016 Construction Labor Relations Briefing on Proposed Policy Resolution Ralph Graves, Sr. Director Capital Development David Freiboth, Sr. Director Labor Relations Aaron Pritchard, Issues and Policy Manager, Commission Draft Resolution Purpose Clarify Port labor relations policy, including the use of Project Labor Agreements (PLA), on several categories of construction contracts at the Port of Seattle. Commission Resolution proposed 2 PLA Elements Agreement between Owner and/or contractor and building trades unions Prevailing Wages Contribution to trust fund Hiring Goals Apprenticeship utilization Economically under-represented communities Local work forces Policy benefits Ensure labor harmony Promote access to jobs Ensure fair treatment Leverage existing safety practices Areas of interest for a Construction Labor Relations policy 3 PLA Implementation History 1999 Original program-wide PLA 3rd Runway, Terminal Expansion, Rental Car Facility One agreement extended to many contracts 2010 PLA Use Policy and Procedures Analysis on each contract Individual project specific PLAs 28 of 109 Port major construction contracts 80% of dollars and 66% of jobs Apprenticeship and diversity goals on all contracts Practice on Port-administered contracts 4 PLA Decision Criteria Project needs for labor continuity and stability Project complexity, cost and duration Value of having uniform working conditions Potential impact of PLA on small businesses Past labor disputes or issues Potential impact on project cost Specific public safety concerns Value of PLA processes to resolve disputes Staff recommendation subject to Commission approval 5 PLAs on Port Major Projects 2011-2015 26 of 120 Port major construction contracts 78% of dollars and 52% of jobs Larger contracts have used PLAs 6 Three Construction Types A. Port directed contracts for construction B. Port reimbursed tenant-administered construction C. Construction on Port property no reimbursement (e.g. ground lease) Current Port policy addresses only A 7 Policy Proposal A. Port Contracts Largely continues per recent practice Add assumption in favor of using PLA for labor value exceeding $5M Continue apprentice- ship goals and consider locality hiring Continue successful policy on Port contracts 8 Policy Proposal B. Port Reimbursed Encourage PLA per Port practice Require paying and reporting prevailing wages Require hiring goals for apprenticeship and locality as part of a regional program Extends prevailing wage requirement from airport to rest of Port 9 Policy Proposal C. Tenant Funded (Ground Leases) Encourage employing PLA per Port practice Require prevailing wages and hiring goals for apprenticeship and locality as part of a regional program If opportunity fails, then modify and evaluate labor provisions as part of selection process Balancing labor measures with legal and commercial considerations 10 Benefits of Proposed Policy Asserts Commission intent respecting all construction contracts on Port property Advances equal access to construction jobs Smooths path for PLA implementation on upcoming projects: Fueling system modifications T-5 Modernization The Port provides quality jobs while advancing its facilities and commercial objectives 11
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