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Port Commission Regular Meeting of September 27. 2016
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ASSOCIATED GENERAL CONTRACTORS of WASHINGTON

Stall - integrity - Responsibility

Port Commissioners: Creighton, Albro, Bowman, Felleman and Gregoire

AGCWA recently received the "Final Draft" of the Construction Labor Resolution.
Disappointingly. the Resolution doesn't address any of AGCWA's major concerns
communicated to the Commission and staff over the past nine months:

.  including contractors at the table to negotiate the terms and conditions of PLA
projects for which they are held accountable.
.  Creating equal access to Port contracts for all contractors and their workers
regardless of union afliation or not.
0  Using comprehensive criteria to single out projects that may be appropriate for a
PLA rather than relying on an arbitrary threshold that catches too many projects.

Therefore, we request Section Ill be amended by adding a new paragraph C to read as
follows:

C.   If the criteria weigh in favor of a PLA, a PLA template negotiated by the
Port, contractors and the unions will be executed for the project.  (See
athched amended Resolution 3725)

This will allow contractors to advocate for the issues not addressed by the Resolution.
If contractors are not at the table. these issues will not be addressed.

Further the Resolution inadvertently omits the "cost and duration" criteria included in
the staff memo. These important criteria should be added to the Resolution.

I look forward to your consideration of this request and its inclusion of these provisions
in the next draft of the resolution. Thank you.


ny Din dorf
AGCWA Seattle District Manager



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Item Number:
Meeting Date:  September 27, 2016


Draft Resolution No. 3725


A Resolution of the Port of Seattle Commission establishing a Policy Directive for practices for
construction labor for projects located on Port property

WHEREAS, the Washington State Legislature in 1911 authorized local voters to create
publicly owned and managed port districts as independent government bodies run by directly
elected port commissioners with powers to acquire and manage resources that promote trade and
commerce; and

WHEREAS, constructed transportation, industrial and administrative facilities such as
temiinals, roads, berths, runways, warehouses, parking garages and warehouses are critical to
accomplishing the Port's transportation and economic development missions; and

WHEREAS, expanding and diversify'mg operations as well as need for facilities renewal
and replacement drive an ongoing Port program ofcapital development; and

WHEREAS, effective and economical execution of the Port's capital program depends
on a healthy and diverse market ofgnerai contractors, subcontractors and suppliers; and

WHEREAS, to ensure diverse competition and provide fair access to economic
opportunin that nmrket should include small, minority-owned and women-owned businesses
who successfully compete for a share of direct and subcontracted Port construction work; and

WHEREAS, Port capital program success depends also on availability of a
skilled, experienced, capable construction labor workforce; and

WHEREAS, Project Labor Agreements can help ensure construction
workplace safety; and

WHEREAS, to meet labor supply needs and to ensure equality of opportunity the
construction labor workforce should encourage participation by women and minorities; and

WHEREAS, for timely and efcient delivery of construction projects the Port has an
interest in avoiding work stoppages; and

WHEREAS, in helping create economic prosperity across the region, it is important that
thejobs generated by Port activity are quality jobs on which workers can build their
careers and support their families; and

WHEREAS, apprenticeship and pre-apprenticeship programs play a key role both in
providing access for individuals aspiring to good construction jobs and in supplying sufcient
trained and capable labor to meet the construction needs of the Port and other public and private
facilities owners; and

WHEREAS, RCW 39.12 requires the payment of prevailing wages on all public works
contracts of government entities such as the Port; and

WHEREAS, some projects constructed on Port property are contracted for by the Port
under the provisions of RCW 39.04 and other applicable statutes, some projects are contracted
for by Port lease tenants with all or part of the cost reimbursed by the Port and some are
coustructed entirely at the cost of Port tenants; and

WHEREAS, Project Labor Agreements (PLA), also known as Community Workforce
Agreements (CWA), authorized under the National Labor Relations Act (NLRA), 29 U.S.C.,
provide a means for aligning the interests of public owners such as the Port with those of
construction labor unions; and

WHEREAS, The Port of Seattle Commission and the CEO together develop Policy
Directives as stated under Section 1(A)(2) of the General Delegation of Authority, which Policy
Directives, under section (B)(1)(2) and (3), are intended to provide guidance, inform operations,
and deliver standards that support the effective use of irrtemal audit functions to verify
compliance;

NOW, THEREFORE, BE IT RESOLVED by the Port Commission of the
Port of Seattle as follows:


The following Policy Directive related to practices for construction labor for projects located on
Port property is hereby adopted.

Section I. For major construction contracts (excluding small works executed per RCW
39.04.155):
A. The Port shall evaluate the applicability of a project labor agreement (PLA)
for each contract according to the following criteria:
1.  The assumption will be in favor of employing a PLA when projected
construction labor costs are $5 million or greater
2.  Project needs for labor continuity and stability, including analysis of labor
needs by trade
Project complexity, cost and duration
>19???"  Value of having uniform working conditions
Potential impact of PLA on small business opportunities
Past labor disputes or issues indicating risk of delay
Potential PLA impact on project cost

8.  Project presents specic safety concerns to the public
9.  Value  of an  established PLA  grievance  process   to  resolve  labor
management orjurisdictional disputes
10. Other considerations (identify)
The Port shall require the payment and reporting of prevailing wages per
RCW and State Department of Labor and Industries requirements.
C. If the criteria weigh in favor of a PLA, 3 PLA template negotiated by the Port,
contractors and the unions will be executed for the project.
D. Commission approval is needed to employ a PLA.
E. For contracts $1 million in value or greater, as part of a regional cooperative
program:
1.  Establish in contracts and PLAs appropriate apprentice and locality hiring
goals.
2.  Establish in contracts and PLAs appropriate aspirational women and
minority apprentice hiring goals.

Section II. For tenant-administered construction contracts paid for entirely or in part by
the Port through tenant reimbursement or other means, the Port shall:
A. Encourage tenants to examine the applicability of a PLA for each contract
according to the criteria in Section 1(A) above.
B. As a condition of cost reimbursement, require the payment and reporting of
prevailing wages as per RCW and State Department of Labor and Industries
requirements.
For contracts $1 million in value or greater, as part of a regional cooperative
program:
1.  Require the establishment in contracts and PLAs of appropriate apprentice
hiring goals.
2.  Encourage the establishment in contracts and PLAs appropriate locality
hiring and aspirational women and minority apprentice hiring goals.

Section III. For construction contracts performed on Port property at the hill cost of
tenants, the Port shall:
A Encourage tenants to examine the applicability of a PLA for each contract
according to the criteria in Section I(A) above.
B. As a provision of initial requests for proposal or opening negotiations, as
appropriate:
1.  As a lease provision, require the payment and reporting of prevailing
wages as per RCW and State Department of Labor and Industries
requirements.
2.  For contracts $1  million in value or greater, as part of a regional
cooperative program:
a.  Require the establishment in contracts and PLAs of appropriate
apprentice hiring goals.
b.  Encourage the establishment in contracts and PLAs appropriate
locality hiring and aspirational women and minority apprentice hiring
goals.

C. If an advertised or negotiated development opportunity featuring the above
provisions fails to attract proposers, staff shall take the following actions:
I.  Investigate  the  circumstances,  to  include  discussions  with  potential
proposers and labor.
2.  Modify the construction labor provisions to be used in the request for
proposal or lease amendment to include scoring provisions for each
criterion in Section III(B) above.

Section IV. In each case above, the Port will establish reliable, auditable, and disclosable
measures to ensure compliance.

Section 2:
This Policy Directive shall be labeled and codied as appropriate, together with subsequent
Policy Directives, and shall be made readily available for use by Port staff and members of the
public as a governance document of the Port of Seattle.

APOPTED by the Port Commission ofthe Port of Seattle at a duly noticed
meeting thereof, held this __ day of 20l6, and duly authenticated in open
session by the signatures of the Commissioners voting in favor thereof and the seal of the
Commission.




Port Commission