8c. PLA 3725 Redline
Item No. 8c, Attachment A Meeting Date: March 27, 2019 Resolution No. 3725, as amended 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 public 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, the voters of King County established the Port of Seattle as a county-wide port district in 1911; and WHEREAS, constructed transportation, industrial and administrative facilities such as terminals, roads, berths, runways, warehouses, parking garages and warehouses are critical to accomplishing the Port's transportation and economic development missions; and WHEREAS, expanding and diversifying operations as well as need for facilities renewal and replacement drive an ongoing Port program of capital development; and WHEREAS, effective and economical execution of the Port's capital program depends on a healthy and diverse market of general contractors, subcontractors and suppliers; and WHEREAS, to ensure diverse competition and provide fair access to economic opportunity that market 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 efficient delivery of construction projects the Port has an interest in avoiding work stoppages; and 1 Item No. 8c, Attachment A Meeting Date: March 27, 2019 WHEREAS, in helping create economic prosperity across the region, it is important that the jobs 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 fair access for individuals aspiring to good construction jobs and in supplying sufficient 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 by the Port under the provisions of RCW 39.04 and other applicable statutes, some projects are contracted by Port lease tenants with all or part of the cost reimbursed by the Port and some are constructed entirely at the cost of Port tenants , within existing leaseholds or on ground leases at developer risk; and WHEREAS, Project Labor Agreements (PLA), 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 internal audit functions to verify compliance; NOW, THEREFORE, BE IT RESOLVED by the Port Commission of the Port of Seattle as follows: Section 1: 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 The assumption will be in favor of employing a PLA for construction contracts that are anticipated to be in excess of $5 million at the time of bid or, if absent a bid, at the time of the contract award. 2 Item No. 8c, Attachment A Meeting Date: March 27, 2019 2. Project needs for labor continuity and stability, including analysis of labor needs by trade 3. Project complexity, including cost and duration 4. Value of having uniform working conditions 5. Potential impact of PLA on small business opportunities 6. Past labor disputes or issues indicating risk of delay 7. Potential PLA impact on project cost 8. Project presents specific safety concerns to the public 9. Value of an established PLA grievance process to resolve labormanagement or jurisdictional disputes 10. Other considerations particular to individual projects B. The Port shall require the payment and reporting of prevailing wages per RCW and State Department of Labor and Industries requirements. C. Commission approval is needed to employ a PLA. D. For contracts $1 million in value or greater, the Port shall establish: 1. Appropriate apprentice and locality hiring goals. 2. 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 I(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. C. For contracts $1 million in value or greater: 1. Require the establishment of appropriate apprentice hiring goals. 2. Encourage the establishment of appropriate locality hiring and aspirational women and minority apprentice hiring goals. Section III. For construction contracts performed on Port property at the full 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. As a lease provision, require the payment and reporting of prevailing wages as required by Washington statutes and regulations and State Department of Labor and Industries requirements except in the case that the tenant is a small business by U.S. Small Business Administration size standards. 2. For contracts $1 million in value or greater: 3 Item No. 8c, Attachment A Meeting Date: March 27, 2019 a. Require the establishment of appropriate apprentice hiring goals. b. Encourage the establishment of 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 advance staff: 1. Shall investigate the circumstances, to include discussions with potential proposers and labor. 2. Is authorized to incorporate modified construction labor provisions for scoring the solicitation and incorporation in the eventual agreement. Section IV. The Projects and Procurements Committee is hereby chartered to work with staff and stakeholders to develop standard language to be included in Port PLAs unless otherwise authorized by the Commission. Section V. In each case above, the Port will establish reliable, auditable, and disclosable measures to ensure compliance. Section VI. The Port staff will seek in cooperation with regional government agencies, construction trade unions, contractors and tra ining institutions to develop cooperative programs to advance the training and placement of apprentices, with emphasis on expanding opportunity for underrepresented groups. Section 2: This Policy Directive shall be labeled and codified 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 of the Port of Seattle at a duly noticed meeting thereof, held this day of , 2016, and duly authenticated in open session by the signatures of the Commissioners voting in favor thereof and the seal of the Commission. Port Commission 4
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