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REPORT TO THE CITY COUNCIL FROM: GEORGEANNE A. WHITE, City Manager Office of the Mayor & City Manager BY: NICHOLAS D. MASCIA, PE, Assistant City Manager Interim Director, Capital Projects Department JASON STARNES, PE, Assistant Director Capital Projects Department, Construction Management Division SUBJECT ..Title ***RESOLUTION – Approving an Amendment to the Project Labor Agreement for Citywide Public Work of Improvement Projects (Subject to Mayor’s Veto) ..Body RECOMMENDATION Staff recommends that City Council approve the Resolution approving an Amendment to the Project Labor Agreement for Citywide Public Work of Improvement Projects between the City of Fresno and the Fresno, Madera, Kings and Tulare Counties Building and Construction Trades Council to extend the term of the Community Workforce Agreement by 4 years and 11 months, to December 31, 2031, and authorize the City Manager or designee to execute the Amendment No. 1 on behalf of the City. EXECUTIVE SUMMARY On September 29, 2021, the City entered into a Community Workforce Agreement (CWA) with the Fresno, Madera, Kings and Tulare Counties Building and Construction Trades Council. The agreement became effective 120 days later on January 27, 2022. The initial agreement covers the period from January 27, 2022 to January 27, 2027. The CWA was established in order to provide employment and training opportunities to local workers, provide pathways into high-quality construction careers, combat unemployment and build a skilled construction labor force for future City construction projects. The proposed Amendment No.1 includes the extension of the agreement 4 years and 11 months, to December 31, 2031, the modification of the Community Workforce Agreement established definitions for “City Resident” and “New Local Apprentice”, increase of the Community Workforce Agreement project threshold, and reducing the target number apprentice hours. BACKGROUND On September 29, 2021, the Council adopted the Community Workforce Agreement (CWA), that was executed on September 29, 2021, becoming effective on January 27, 2022, and will remain in effect until January 27, 2027. The Capital Projects Department (CPD) manages the effectiveness of the CWA for each active project. CPD schedules pre-construction Community Workforce Agreement meetings with the contractor, sub-contractors, and all affected union halls. These meetings are used to announce trade craft assignments and discuss scope of work for each project. In addition, it is a question-and-answer period to address any questions or concerns by the project bidders of the Community Workforce Agreement processes and requirements. CPD provides the required updates to the Trades Council demonstrating concerns or highlights of any specific project. As part of the Community Workforce Agreement, the Joint Administrative Committee (JAC), which is comprised of representatives from the Trades Council and CPD, meets to review the progress of the Community Workforce Agreement in relation to local hiring targets. The Community Workforce Agreement is also referred to as the Project Labor Agreement (PLA), in City documentation, reports, and correspondence. A summary of the changes of the Community Workforce Agreement as incorporated in Amendment No.1 are included below: Amendment No 1. modified language within section 1.4 of the Community Workforce Agreement adds in County Islands within the bounds of the City. Amendment No 1. modified language within section 1.10 of the Community Workforce Agreement removes the graduate requirement of a Trade Council-recognized pre-apprenticeship program. Amendment No 1. modified language within section 1.12 of the Community Workforce Agreement increases the “project” determination threshold from $1,000,000 to $3,500,000. Amendment No 1. modified requirements within section 9.4.2 of the Community Workforce Agreement reduces the requirements of local apprentice hours from 55% to 50%. Amendment No 1. modified language within section 19.3 of the Community Workforce Agreement extends the term of the agreement by 4 years and 11 months, to December 31, 2031. Amendment No 1. modified language within section 19.4 of the Community Workforce Agreement, changes the criteria for extension negotiation of this agreement. Table Summary Amendment No. 1 Changes to Community Workforce Agreement Reference Section: Original CWA Language: Change Within Amendment No. 1: 1.4 "City Resident" means an individual domiciled in the City. "Domiciled" has the meaning set forth in section 349(b) of the California Election Code, which cannot be a post office box. “City Resident” means an individual domiciled in the City or in a County island within the territorial boundaries of the City. “Domiciled” has the meaning set forth in section 349(b) of the California Election Code, which cannot be a post office box. 1.10 "New Local Apprentice" means a City Resident who both (i) is enrolled (or can be immediately enrolled) in a state-approved joint labor-management apprenticeship program and has progressed less than halfway toward the work hours needed to graduate from such program; and (ii) is a graduate of a Trades Council-recognized preapprenticeship program. “New Local Apprentice” means a City Resident who is enrolled (or can be immediately enrolled) in a state-approved joint labor-management apprenticeship program and has progressed less than halfway toward the work hours needed to graduate from such program. and (ii) is a graduate of a Trades Council-recognized preapprenticeship program. 1.12 "Project" means a City awarded public works project as defined in California Labor Code Section 1720, where the engineer's estimate of the total cost of the project exceeds one million dollars ($1,000,000). All Construction Contracts required to complete an integrated Project shall be considered in determining whether this threshold is met. For the purpose of application of this threshold to Job Order Contracts, the threshold shall be applied to each job order, rather than to the job order contract aggregate maximum; any individual job order above the threshold shall require application of this agreement to such individual job order. The City and the Trades Council may mutually agree in writing to add additional projects or components to be covered by this Agreement. “Project” means a City awarded public works project as defined in California Labor Code Section 1720, where the engineer’s estimate of the total cost of the project exceeds three and a half million dollars ($3,500,000). All Construction Contracts required to complete an integrated Project shall be considered in determining whether this threshold is met. For the purpose of application of this threshold to Job Order Contracts, the threshold shall be applied to each job order, rather than to the job order contract aggregate maximum; any individual job order above the threshold shall require application of this Agreement to such individual job order. The City and the Trades Council may mutually agree in writing to add additional projects or components to be covered by this Agreement. 9.4.2 at least 55 percent of all apprentice-level Project work hours performed by City Residents; at least 50 percent of all apprentice-level Project work hours performed by City Residents; 19.3 This Agreement shall become effective 120 days after it is executed by the City and the Trades Council and shall remain in effect until the five (5) year anniversary of the effective date. During this term, the City administration shall prepare annual reports to the City Council on Agreement implementation and results of the Local Hiring Program, which reports shall be provided to the JAC for review and comment prior to submission to the City Council. The Unions, Trades Council, and Contractors shall provide to the administration requested information relevant to such reports, including information regarding referrals from hiring halls for Covered Work on Projects. Upon the two-year anniversary of the effective date, if the Percentage Requirements set forth in the Local Hiring Program are not being met on all Projects in aggregate, the City shall provide the Trades Council with written notice. Upon receipt of such notice, the Trades Council and the City shall meet and confer regarding whether to modify the Local Hiring Program in order to improve outcomes and meet the Percentage Requirements, with any such modifications made upon mutual agreement by the Trades Council and the City. A similar process will take place on the third and fourth anniversaries of the effective date. This Amendment shall become effective 120 days after it is executed by the City and the Trades Council (Amendment Effective Date) and shall remain in effect until December 31, 2031 until the five (5) year anniversary of the effective date. During this term, the City administration shall prepare annual reports to the City Council on Agreement implementation and results of the Local Hiring Program, which reports shall be provided to the JAC for review and comment prior to submission to the City Council. The Unions, Trades Council, and Contractors shall provide to the administration requested information relevant to such reports, including information regarding referrals from hiring halls for Covered Work on Projects. Upon the two-year anniversary of the effective date Two years after the Amendment Effective Date, if the Percentage Requirements set forth in the Local Hiring Program are not being met on all Projects in aggregate, the City shall provide the Trades Council with written notice. Upon receipt of such notice, the Trades Council and the City shall meet and confer regarding whether to modify the Local Hiring Program in order to improve outcomes and meet the Percentage Requirements, with any such modifications made upon mutual agreement by the Trades Council and the City. A similar process will take place on each anniversary of the effective date. 19.4 Approximately ninety (90) days prior to the five (5) year anniversary of the effective date of this Agreement, at the request of either party, the City and Trades Council shall meet to discuss whether to extend this Agreement, and, if so, the proposed terms of such extension including any proposed changes to the Agreement. Approximately ninety (90) days prior to five (5) year anniversary expiration of this Agreement, at the request of either party, the City and Trades Council shall meet to discuss whether to extend this Agreement, and, if so, the proposed terms of such extension including any proposed changes to the Agreement. Paragraph 8 In the event any Union signatory to the Agreement declines to continue to be bound by the Agreement after its original expiration date, and provides such notice, in writing, to the City and the Council within sixty (60) days of execution of this Amendment No. 1, then the Union will no longer be bound by the Agreement after January 27, 2027, and the City’s obligation to such union will cease on the same date. ENVIRONMENTAL FINDINGS This is not a “project” for the purposes of CEQA, pursuant to CEQA Guidelines Section 15378. LOCAL PREFERENCE Local preference was not considered because this is an amendment to the current Community Workforce Agreement. FISCAL IMPACT There is no impact to the general fund regarding the extension of this agreement. Attachments: Resolution and Amendment PLA Resolution 2021-242 with Original Agreement Community Workforce Agreement - Executed Memo- Annual Local Hire Summary Report for February 2026 Memo- Annual Local Hire Summary Report for February 2025 Memo- Annual Local Hire Summary Report for February 2024