(May 14, 2008) -- City management has told the City Council (and taxpayers) that it's nearly completed drafting a "Project Labor Agreement" with the Building Trades Council (union representing L.A./OC workers on various public works projects) and if that agreement is ultimately approved by the City Council, it would govern major public works construction projects in the City of LB.

The informational update came via a report (no action taken) agendized by Mayor Bob Foster and presented at the May 13 City Council meeting.

Mayor Foster opened by presenting a chronology that began in June 2005, when the Council directed city management to draft a resolution creating a new policy to partner with the Building Trades Council to create a PLA for the City of LB. Mayor Foster said a draft is now being finalized, and will be reviewed by the L.A./OC union reps, then be brought back to the Council for approval or disapproval.

However, City Hall's Business Relations Bureau Manager Larry Triesch indicated that discussion of a PLA actually began years earlier...and stemmed from challenges in connection with construction of Queensway Bay and the "Pike" development regarding compliance with HUD "Section 3" requirements. That agency's rules require that when HUD-funding is used on a project, "best efforts" must be made to see that 10% of all construction dollars go to emerging businesses and 30% of all new hires on a construction project are local low income residents.

"Because of our issues with Queensway Bay, Rainbow Harbor and then the Pike development, we've entered into an agreement with Legal Aid that requires us to apply the provisions of HUD Section 3 to $130 million in non-HUD-funded construction," Mr. Triesch said.

"It was felt that the best career path for a construction worker was through the unions' apprenticeship programs and the best way to access the unions was through a project labor agreement, and that's where the idea really came from"...and the Council's 2005 directive to management followed, Mr. Triesch said.

Mr. Triesch said the City Manager's office has since requested that all departments subject any construction to HUD Section 3...and this affects the Project Labor Agreement since it also has to cover HUD Section 3 as well "at least until we've met the $130 million."

Mr. Triesch said that he views local hiring as the real Section 3 goal and believes that "if we are successful in running new apprentices into the program from our own job training program, and the ACE Academy" [the latter, a favored project of Mayor Foster at NLB's Jordan High] the city would meet its Section 3 goals.

Mr. Triesch said that Mayor Foster recommended retaining outside counsel, a lawyer from Washington, D.C, "who has negotiated many a Project Labor Agreement and knows the west coast scene very, very well," Mr. Triesch said.

"I think that very shortly we'll be able to come back to you with an agreement. We have a draft agreement at this time. There are just a few bugs to be worked out" after which the agreement would be sent to the L.A./OC building trade union...and then to the City Council for approval or disapproval.

Mr. Triesch added that the PLA is not a "prevailing wage" agreement; City Hall is already required to pay the "prevailing wage" on every construction project regardless of whether there's a PLA in place.

Councilwoman Reyes Uranga asked what projects the PLA would include. "That's part of the negotiations," Mr. Triesch said, but added "we're at this point in time talking about all Public Works projects, anything that goes through the City would be subject to Section 3 as I see it at this point in time, but that's really a matter for negotiations."

He later said, "We were talking about simply street work [previously] and I want you to know that's off that table. We're talking much more broadly than that now."

LB Area Chamber of Commerce board chair Matt Kinley then came to the public speaking podium:

Mr. Kinley: ...I'm here on behalf of the Chamber tonight to strongly oppose any agreement negotiations for Project Labor Agreements.

The Chamber believes that any PLA which contains a union mandate would hurt employers, would hurt employees and will ultimate hurt this city.

First: Project Labor Agreements have been shown to add as much as 20% to costs to construction projects. When we can't afford to properly fund fire, health and safety or libraries, we should not be looking to be adding costs to construction projects in the city.

PLAs with a union mandate component have also been shown to actually decrease the number of local bids, as well as limit the number of local workers that a construction company may hire. The problem is that subject to the union seniority rules and it's going to be almost impossible to get around that, and it would be much easier to work with private organizations to get local employees.

These types of PLAs also discriminate against employees and employers, requiring them to be members of a union. They actually harm small businesses which are far less likely to be union shops.

They harm minority businesses and women-owned businesses who are also much less likely to be union shops.

Unions contend that a PLA with a union mandate would guarantee labor peace at a site and timely completion of projects. In fact, studies have shown just the opposite, that PLAs experience serious delays due to work stoppages and projects going over budget.

We urge the City Manager and the City Council and the Mayor to carefully consider Project Labor Agreements and to understand the costs to the city, the employees and the employers in the city.

Councilman Gary DeLong then asked Mr. Triesch, asked how much money was spent on the outside counsel. Mr. Triesch said he didn't know because he didn't have the bill; City Attorney Shannon said he'd be glad to provide the information.

Councilman DeLong then followed up with Mr. Triesch: "When you come back with an update, can you address what the potential is that it might increase costs of capital projects if we have Project Labor Agreements?" Mr. Triesch said he would do so.

Vice Mayor Bonnie Lowenthal said:

Vice Mayor Lowenthal: ...I don't think that cheap is better. I think that having a Project Labor Agreement will guarantee that individuals can become apprentices and learn a trade that is skilled, that will guarantee a quality labor force. And also that labor force hopefully will become members of the middle class, and that's what we need in Long Beach. We don't need people working at minimum wage on projects that are millions of dollars. So I'm very supportive.

The informational item came to the Council one week after Council majorities approved five year contracts carrying multi-million dollar costs -- without specifics on how City Hall proposes to pay for them -- with LB's non-public safety employees (7-2, Gabelich & DeLong dissenting) and LB's Firefighters (8-1, Gabelich dissenting).

Both contracts were backed by Mayor Foster...who has indicated that he plans to ask the City Council to put a measure on the November ballot (specifics still not shared publicly) to fund infrastructure items.