A Community Workforce Agreement (“CWA”) is often referred to as a Project Labor Agreement in which the purpose is to promote use of local workforce to complete construction projects and develop a pipeline of construction careers within local communities.  This is achieved through a contract between a public agency and a local/regional building trades unions that governs labor practices for certain public works construction projects. Typically, the CWA includes provisions that establish specific local hiring goals based on community priorities.  It is recognized that the goals are aspirational and designed to encourage and promote local hiring with private contractors who bid publicly-funded projects.

At the October 8, 2019 meeting, the City Council voted to have staff present the following information:

• Evaluate CWAs in Orange County;
• Explore possible options for a CWA in Garden Grove; and,
• Engage discussions with LA/OC Building and Construction Trades Council.  

CWAs in Orange County

There are a number of CWAs existing between public agencies and school districts in California of which three CWAs were identified in Orange County. Through an initial assessment, each agreement has variations in duration, project thresholds and local hire targets which is illustrated in the following tables.

Evaluation of CWAs outside Orange County was included to share additional comparison of a basic CWA structure.

Possible Options for a CWA in Garden Grove

Following the initial CWA evaluation, identifying characteristics that were relevant to Garden Grove’s current Public Works construction activity and local hire targets was important.

Capital Projects Summary

A summary of Public Works Capital Project contracts awarded over a four-year period (Attachment 1) was prepared to provide insight on the potential application of a CWA.  Approximately twenty-four (24) Capital Projects have been identified. Thirteen (13) projects were awarded in excess of $1 million totaling approximately $30.9 million over the past four years.  While the Capital Projects Summary identified potential Project Thresholds ranges, concerns about financial impacts arise pertaining to whether implementation of a CWA will increase bid prices due to the emphasis of hiring union contractors and potentially narrowing the pool of contractors and potential reduction in competition. A suggestion to mitigate small contractor impacts is to increase the Project Threshold range to $1 million or higher. Essentially, the CWA provisions would apply to larger Public Works public bid construction projects in which contractors are familiar with the required reporting and administrative requirements of a CWA. 

 The average duration of a CWA in Orange County is five (5) years. However, the terms with certain School District(s) are project specific and associated with bond funds. In reviewing public agencies with CWAs outside of Orange County, City of San Leandro was the most comprehensive in their 2015 CWA implementation and subsequent CWA Extension in 2018.  The CWA provided for local hire targets of 10% for apprentice, 30% of journeymen, a project threshold of $1 million and an initial three (3) year term with an extension for two (2) additional years.

Local Hiring Targets

Individual CWA have targeted local hiring goals specific to each respective public agency or school district, with the most common being 30% of labor hours worked. While local hiring provisions are aspirational in nature, the CWA does promote inclusion and emphasize local hire, apprenticeship, hiring veterans and hiring disadvantaged individuals. Current data provided by the LA/OC Building Trade Council identified 432 Garden Grove residents are members among 17 trades such as plaster, plumbing, cement, refrigeration, and electricians.  Many CWAs have provisions to connect military veterans through the “Helmets to Hardhats” Program and apprenticeship programs offered in partnership with local schools and colleges. In addition, CWAs normally include “no-strike clauses” that ensure work stoppages do not negatively impact project timelines. Historically, the City’s Public Works Department awarded Capital Projects have not experienced any work stoppage incidents as a result of contractor labor disputes.

LA/OC Building and Construction Trades Council

Preliminary CWA discussions with Ernesto Medrano and Ron Miller have initiated and a brief presentation will be conducted by the LA/OC Building and Construction Trades Council.

The administration requirements of the CWA is uncertain at this time. A CWA Administrator is typically tasked with providing oversight of the bidding process and compliance with CWA terms concurrently with tracking results and performance metrics such as local hire and outreach. Additional budget resources will likely be necessary for the Public Works Department to absorb any future administration of a CWA.

It is recommended that the City Council:

• Provide direction to staff, should the Council wish to study the issue further to engage the OC/LA Building and Construction Trades Council in discussions to potentially develop an agreement.