7c supp

ITEM NO:     7c_supp 
MEETING DATE: January 26, 2016 
Construction Labor Relations
Briefing on Proposed Policy
Resolution 
David Freiboth, Sr. Director
Labor Relations 
Ralph Graves, Sr. Director 
Capital Development

Draft Resolution Purpose 
Commitment to evaluate the use of Project
Labor Agreements (PLA) on Port major
construction contracts 
Commitment to encourage the use of PLAs
on tenant projects 

Currently no Commission Resolution in place.

PLA Elements 
Agreement between Owner and/or contractor
and building trades unions 
Prevailing Wages 
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.

PLA Implementation History 
1999 Original program-wide PLA 
2010 PLA Use Policy and Procedures 
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.

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 
Commission acts on staff recommendation.

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) 

Policy addresses extending Port practice to other types.

Policy Proposal  Port Contracts 
Largely continues per recent practice 
Add presumption of using PLA for contracts
exceeding $10M 
Continue apprenticeship goals and consider
locality hiring 

Continue successful policy on Port contracts.

Policy Proposal  Port Reimbursed 
Encourage employing PLA per Port practice 
Require paying and reporting prevailing
wages 
Encourage hiring goals 

Prevailing wages already a requirement at the airport.

Policy Proposal  Tenant Funded 
Encourage employing PLA per Port practice 
Make construction labor measures an
element of lease competitions and
incorporate proposed measures into leases 
Encourage hiring goals 

Balancing labor measures with legal and commercial considerations.

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