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Home My WebLink AboutMINUTES - 01062009 - C.62 Contra TO: BOARD OF SUPERVISORS FROM: INTERNAL OPERATIONS COMMITTEE e Costa DATE: NOVEMBER 3, 2008 a coux'� County SUBJECT: UPDATE ON COUNTY'S EXPERIENCE WITH THE PROJECT LABOR AGREEMENT SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1. ACCEPT report on the County's experience with its policy requiring Project Labor Agreements (PLAs)on construction projects costing in excess of$1 million. 2. FIND that the use of PLAs has resulted in no identifiable negative impacts on the overall cost or schedule for the delivery of County capital projects, except for some delay in the turnaround time from bid opening to award for Public Works projects and a reported reluctance of some contractors to bid on projects because of the policy. 3. DETERMINE that, as PLAs have become a routine aspect of County capital projects, this referral shall be suspended until interest arises in further examination or amendment of the existing policy. CONTINUED ON ATTACHMENT: YES SIGNATURE: RE MMENDATION OF COUNTY ADMINISTRATOR COMMENDA O OF BOARD COMMITTEE PROVE _OTHER . SIGNATURE(S): GGA/ SUSAN A. BONILLA,CHAIR GAYW. UILKEMA ACTION OF BOARD ONS 1 076'1 k `1_Gt96 APPROVE AS RECOMMENDED /\. 0 — VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED UNANIMOUS(ABSENT yI_ (Tl'J.�-�1 ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN AYES: NOES: ATTESTED: JANUARY 6,2009 ABSENT: ABSTAIN: DAVID J.TWA,,CLERK OF THE BOARD OF SUPERVISO AND COUNTY ADMINISTRATOR CONTACT: JULIE ENEA(925)335-1077 BY DEPUTY CC: INTERNAL OPERATIONS COMMITTEE STAFF MICHAEL LANGO,GENERAL SERVICES DIRECTOR JULIE BUEREN,PUBLIC WORKS DIRECTOR JASON CRAPO,SENIOR DEPUTY CAO–MUNICIPAL SERVICES Project Labor Agreement Policy Update November 3,2008 Internal Operations Committee Page 2 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, eliminate the core workforce provision, and clarify that the $1 million threshold applies to the actual construction cost of a project, not simply the estimated construction cost. The County Administrator's Office(CAO)has been reporting annually to the Internal Operations Committee(IOC)regarding the County's experience implementing and administering the PLA policy. The last update was provided in October 2007. No new construction projects above the $1 million PLA threshold were awarded by the County since the last status report. At its November 3, 2008 meeting, the IOC met with staff from the County Administrator's Office and General Services and Public Works departments to review those construction projects that have met the PLA criteria since inception of the policy.. Since inception of the PLA policy, General Services has utilized PLAs on 10 projects and Public Works has utilized PLAs on 2 projects. Neither department has reported any significant disruptions or negative impacts associated with the use of PLAs. Public Works reports that prior to the award of construction contracts, some additional time has been required to educate contractors on the PLA process if it is new to them. Both Public Works and General Services report that some contractors indicated a reluctance to bid on County construction projects due to PLA requirements. However, the County continues to receive bids for construction projects that are generally consistent with cost estimates prepared prior to the bidding process. No wage violations or disputes were reported on any of the PLAs relating to the 12 projects. We conclude,therefore,that the use of PLAs has resulted in no identifiable negative impacts on the overall cost or schedule for the delivery of County capital projects. Contra Costa County Public Works D e p a r t m e n t Interoffice Memo TO: David Twa, County Administrator DATE: October 23, FROM: . Julia R. Bu ren �IriWorks Director SUBJECT: Project Labor Agreement Report (May 2002 — October 2008) 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 memorandum is intended to provide the latest information from our Department about the PLA policy and its implementation in Public Works. 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, ultimately totaling $2,245,441.68 (final contract price). 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 final contract cost for the project was $2,245,441.68. 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 $6,538,401 or 7% higher than the lowest bidder. The final contract cost for this project was $ 6,635,729.40. The low bidder is a union contractor. The work on this project was completed on 255 Glacier Drive Martinez,CA 94553-4825 TEL: (925)313-2000.FAX: (925)313-2333 www.cccpublicworks.org Contra Costa County Public Works D e p a r t m e n t May 1, 2008 and is currently in a 5-year maintenance period. Upon completion of the maintenance period the project will be accepted as complete. The information on the two projects is summarized in the attached table. Summary of PLA Project Bid and Contract Awards Both projects were advertised for bid subject to the provisions of the PLA policy and were awarded to a union contractor. The award of the contract occurred 112 days and 84 days respectively, after the bid opening. For projects without a PLA requirement (less than $1,000,000) the average turnaround time from bid opening to award is 35 days. Based on this limited data the contract award times for projects with provisions for PLA were delayed in their time to award. Reported Wage Violations and Disputes There were no reported wage violation/disputes relative to the Project Labor Agreements for these projects Attachment JRB;bmb G:\Gtpdata\Admin\Brian\2008\October\PLA rpt memo 2008 Cc: J, Crapo,CAO B.Balbas,Deputy K.Emigh,Construction 255 Glacer Drive Martinez,CA 94553-4825 TEL: (925)313-2000• FAX:(925)313-2333 www.cccpublicworks.org \ � � \! � % \ � � - »` � /\ to . » , \� \ � � \ ja ° � \ � � } t d v o 0 0 0 o v 5 0 � o W -. ❑ o d S' OR m a o C V C U 9 Hi Vi N 2-2 m5n N O 0 N ? oda N VU 6 Ns cNn 6N9 c9 69 V 3 C d c ,$ N o c $y F y a m w 0 0 0 0 0 00 0 .0 E.. O N % u OOi b w w N (� N O 6: 4 ai W W .0 E o - Z Qo G v E G O w cn m in V U �+ o L r o a vi z .8 r1 [" C. U U y O O. 0 Q N O V r o s G W O � J � 0 7 $ O to C4 O ?p 0 O vG A00 O ~✓ yG � Q � N V U ty go o � yG � w1 c N bq /q i G •G 't p. . o 3 or ty r 3 R � dE� .+ +y �P.' O d ✓ � 6 P O O .•I�//�\ m G ai � y N 9 �',� � p u f. 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