HomeMy WebLinkAboutMINUTES - 11142006 - C.137 Contra
TO: BOARD OF SUPERVISORS
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CostaFROM: INTERNAL OPERATIONS COMMITTEE e
nasi - -
DATE: OCTOBER 4, 2006 '' �-� County -
SUBJECT:
`,UP Y' EXPERIENCE WITH THE PROJECT LABOR AGI
UPDATE ON COUNTY'S RE
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
1. ACCEPT report from the County Administrator,General Services Director, and Public Works
Director on recent experience(since the last report in August 2004)with the County's policy
requiring Project Labor Agreements(PLAs)on construction projects costing in excess of$1 million.
2. ACKNOWLEDGE that since August 2004,the PLA policy has been applicable to only one project—
the Parker Avenue Reconstruction Project—managed by the Public Works Department.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND O OF BOARD COMMITTEE
APPROVE OTHER
s
(ABSENT)
SIGNATURE(S): �'� ���
AYLE B.L RKENA,CHAIR MARK DeSAULNIER
ACTION OF BOARD ON—&Q✓ Z q-006 APPROVE AS RECOMMENDED OT R
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT
-�� COPY OF AN ACTION TAKEN AND ENTERED
UNANIMOUS(ABSENT ) ON THE MINUTES OF THE BOARD OF SUPERVISORS
ON THE DATE SHOWN
AYES: NOES: ATTESTED: November 14,2006
ABSENT: ABSTAIN: JOHN CULLEN CLERK OF THE BOARD OF
SUPERVISO AND COUNTY ADMINISTRATOR
CONTACT: JULIE ENEA(925)335-1077 BY
CC: INTERNAL OPERATIONS COMMITTEE STAFF
MICHAEL LANGO,GENERAL SERVICES DIRECTOR
MAURICE SHIU,PUBLIC WORKS DIRECTOR
JASON CRAPO,SENIOR DEPUTY CAO-MUNICIPAL SERVICES
Project Labor Agreement Policy Update October 4, 2006
Internal Operations Committee Page 2
3. With respect to the Parker Avenue Reconstruction Project, FIND that:
■ the County did not experience a noticeable diminishment in the number of bids submitted for
PLA projects as compared to non-PLA projects;
o the final bid price was 7%lower than the architect/engineer cost estimate;
■ the length of time from bid opening to bid award was 85 days, as compared to a 35-day average
turnaround for non-PLA projects;
• no bids from non-union contractors were received on the project; however,this has also been the
case on several non-PLA projects;
■ no payments have yet been made under the contract and so no report can be made as to the
occurrence of wage violations.
4. RECOGNIZE that two pending projects—the District Attorney's new building and the addition to
the Public Works Administration Building—are anticipated to trigger the PLA policy.
5. DIRECT the County Administrator to report back to the IOC in one year with an update on
performance under the PLA policy,and that the report include data on project completion dates and
final project costs for all construction projects since the inception of the PLA policy.
BACKGROUND
In January 2002,the Board of Supervisors adopted a policy requiring the use of Project Labor
Agreements(PLAs)on all County construction projects costing in excess of$1 million. This policy was
modified in August 2003 to incorporate a standardized PLA format and to clarify that the$1 million
threshold applies to the actual construction cost of a project,not simply the estimated cost. The Board of
Supervisors directed the County Administrator(CAO)to report to the Internal Operations Committee
(IOC)in one year regarding the County's experience implementing and administering the PLA policy,
and the CAO has been reporting periodically to the IOC since that time.
At its September 18, 2006 meeting,the IOC met with staff from the County Administrator's Office,and
General Services and Public Works departments to review the construction projects since the August
2004 report to receive an update on the impacts of the policy. Supervisor DeSaulnier was absent.
The departments provided the attached reports and indicated that they have experienced no negative
impacts due to the PLA except for a lengthening in the amount of time between the bid opening date and
award. Since only one project since 2004 has been subject to the PLA policy and two pending projects
are anticipated to trigger the policy,we recommend that the County Administrator be directed to make a
follow-up report to the IOC in one year's time.
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DATE: September 5, 2006
TO: Internal Operations Committee
Supervisor Gayle Uilkema
Supervisor Mark DeSaulnier
l�FROM: Jason Crapo
Capital Facilities Administrator
SUBJECT: PROJECT LABOR AGREEMENT POLICY UPDATE
.B�C)�tOUIIa
On January 15,2002, the Board of Supervisors adopted a policy requiring Project Labor Agreements
(PLAs) on all County construction projects exceeding$1 million. In August 2003, this policy was
revised to clarify that the$1 million threshold applies to the construction contract awarded, not the
estimated cost at the time of bidding.
The Board has directed the County Administrator's Office to provide periodic updates to the
Internal Operations JO) Committee concerning the County's experience implementing and
administering PLAs. The last such update was provided in August 2004. At that time, the County
had entered into PLAs on 6 projects (5 through General Services, 1 though Public Works). As of
August 2004,the County had encountered no noticeable decrease in the number of bidders,nor any
noticeable increase in the price of bids associated with PLAs. There was one wage violation/dispute
on one project that was resolved through the arbitration provisions of the PLA and had no impact
on the completion of the project.
Current Status
Please see the attached reports from the General Services Department(GSD) and the Public Works
Department(PWD) concerning their recent experience with PLAs. The County has awarded only
one new construction project involving a PLA since the last report to the IO Committee in August
2004. This project was awarded by PWD in June 2006. The project received three bids and the
contract awarded was 7%below the engineer's estimate provided prior to biddings. Construction
began in July of this year and no wage violations or disputes have been reported.
PWD has so far completed one project with a PLA since the inception of the PLA policy in 2002.
This project was completed in September 2005. The PLA had no impact on completion of the
project. C'
Since the last report to the IO Committee in August 2004,GSD completed 5 construction projects
involving PLAs. There were no known impacts to these projects resulting from the PLAs. GSD
has not awarded any new construction contracts that reached or exceeded the PLA threshold since
August 2004.
Bids are currently pending for construction of a new building for the District Attorney's Office and
an addition to the existing Public Works Administration Building at 255 Glacier Dr.,Martinez. Both
of these projects are anticipated to exceed the$1 million PLA threshold. As of the writing of this
report,there is no evidence to suggest that the County's PLA policy has had an impact on the
bidding for these two projects.
PUBLIC WORKS DEPARTMENT
CONTRA COSTA COUNTY
DATE: July 20, 2006
To: John Cullen, County Administrator
From: Maurice Shiu, Director of Public Works
Subject: Project Labor Agreement Report (May 2002 — July 2006)
Background
This report summarizes our experience with implementing and administering the
County's Project Labor Agreement(PLA) policy. The policy was initially adopted by
the Board of Supervisors in January 2002 and later revised in August 2003. At the
time of adoption, the Board directed that an annual report of the PLA program be
prepared and presented to the Internal Operations Committee. This is provided to
you for that purpose.
Summary of PLA Projects
During the report period, there were two projects that were under the PLA Program.
The first was Parker Avenue Utility Undergrounding, totaling $1,964,533. The
County received five bids for this project. The bids ranged from a low of$1,964,533
to a high of$2,421,386. The engineers estimate for the project was $2,265,795 or
15% higher than the lowest bidder. The low bidder was a union contractor. The
project was accepted as complete by the Board of Supervisors on September 8,
2005.
The second project is Parker Avenue Reconstruction. This project was awarded
June 20, 2006, for $6,099,497. We received three bids which ranged from
$6,099,497 to $7,863,190. The engineer's estimate was $6,58,401 or 7% higher
that the lowest bidder. The low bidder is a union contractor:
The information on the two projects is summarized in the attached table.
Summary of PLA Project Bid and Contract Awards
The two projects advertised for bid subject to the provisions of the PLA policy and
were awarded to a union contractor. The award of the contract occurred 100 days
and 84 days respectively, after the bid opening. For projects without a PLA
requirement(less than $1,000,000)the average turn around time from bid opening
to award is 35 days.
Reported Wage Violations and Disputes
There was no reported wage violation/dispute relative to the one Project Labor
Agreement. The second project is planned to start construction this month and so
there has not been any payments to have a wage violation/dispute.
Attachment
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G:\G R PDATA\CONST\CORRES\2004\PARKERAVEUNbERGROU NDI NG\M EMO-MC-PROJ ECTLABORAG RE EMENT.DOC
Cc: J.Crapo,CAO
H.Ballenger,Deputy
M.Carlson,Construction
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COSTA COUNTY
el t l es Department Michael J. Lango
SERVICES Director
ty�sikc.r 'r �iTerry Mann
`3':='�a �► Deputy Director
ay
Stephen Silveira
Administrative Services Officer
DATE: July 7, 2006
TO: jWin Cullen, County Administrator
FROlvi: Nuel J. Lango, Director of General Services
SUBJECT: PROJECT LABOR AGREEMENT REPORT (DECEMBER 2003—JUNE 2006)
BACKGROUND '
The County's Project Labor Agreement (PLA) policy was initially adopted by the Board of Supervisors
in January 2002 and later revised in August 2003. The last status report was prepared in July 2004.
This report summarizes our experience with administering the PLA policy for the period noted above.
SUMMARY
Since the last report in July 2004, there have been no new projects requiring a PLA. However, several
existing PLA projects have been completed as listed below:
1. Tenant Improvements at Pittsburg Health Center, 2311 Loveridge Road. — Notice of
Completion September 14, 2004
2. Ironhorse Greenspace/Respite Area Park, Pleasant Hill — Notice of Completion March
15, 2005
3. New Discovery House Facility at 4639 and 4642 Pacheco Boulevard, Martinez—Notice
of Completion April 5, 2005
4. First and Second Floor Remodel and Parking Lot Expansion at 1650 Cavallo Road,
Antioch—Notice of Completion April 19, 2005
5. Remodel and Office Landscape Modifications at 1305 Macdonald Avenue, Richmond -
Notice of Completion July 12, 2005
There have been no known issues or impacts surrounding the PLA that have occurred since July 2004 on
the above projects.
NM:RL:tb
CONTRA COSTA COUNTY
RECENED
cc: Terry Mann, Deputy General Services Director
Rob Lim, Capital Projects Division Manager jUL 11 2006
Jason Crapo, Capital Facilities Administrator
1220 Morello Avenue • rtinez, CA OR
(925) 313-7100 Phone • ( 25 b
H:\ ALPHA\PLA\07060601b.doc