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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