Title
Consider receiving an update on negotiations for a Project Labor Agreement related to the Interlake Tunnel and Spillway Modification Projects.
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Supervisors:
Receive an update on negotiations for a Project Labor Agreement related to the Interlake Tunnel and Spillway Modification Projects.
SUMMARY/DISCUSSION:
On February 9, 2016, the Monterey County Water Resources Agency (“Agency”) Board of Supervisors committed to having a Project Labor Agreement (“PLA”) for the Interlake Tunnel and Spillway Modification Projects and authorized and directed Staff to enter into negotiations for the PLA with certain conditions. Further, it required bi-weekly progress reports regarding PLA negotiations. This is the first such report.
The PLA negotiation team for the Agency is comprised of the following individuals:
Jesse Avila, Deputy County Counsel: Monterey County;
David Chardavoyne, General Manager: Monterey County Water Resources Agency;
Joan Cox, Partner: Burke, Williams & Sorensen, LLP; and,
Ron Drake, Vice President: EPC Consultants, Inc.
The first PLA negotiating meeting was held on February 12, 2016 to develop a negotiating process plan. At that meeting the following was accomplished:
1. Parties to the PLA were identified as the Agency, Monterey/Santa Cruz Counties Building Trades Council and Tri-Counties Building and Construction Trades Council
(collectively, “Building Trades”).
2. Future meeting dates were established: one per week, starting February 22 and going through March 30.
3. The Agency was asked to identify what agreement it would like to use as a starting point, redline it, if applicable, and provide it to Building Trades representatives 72 hours in advance of the meeting on February 22.
4. Building Trades was asked to research how to manage participation of miners, a trade deemed critical for a tunnel project; but, not one that has an agreement with Building Trades.
The Agency elected to utilize the Sonoma County PLA template as a starting point and made certain revision as follows:
1. Replaced some provisions with the language from the draft provided by Building Trades;
2. Added language to make the PLA more project-specific; and,
3. Added language to address the fact that this Project spans two counties and involves two different Trades Councils.
The proposed PLA was then forwarded to the Building Trades representatives on February 19, 2016.
Other stakeholders, who had previously expressed an interest in the PLA negotiations, were notified on February 19th that negotiations had commenced and a meeting with those stakeholders has tentatively been set for March 3, 2016.
At the February 22nd PLA negotiating meeting, Building Trades insisted that the Sonoma County PLA template not be used as a starting point for negotiations and that a Building Trades document (“Monterey Agreement”) be utilized as a starting point. Consequently, no real negotiations took place. However, the Agency provided to Building Traces an overview of salient features in the document it had prepared.
Also, the issue of participation of miners was not resolved. The Agency learned that a PLA between the Agency and Building Trades will require approval of the National Building and Trades organization located in Washington, D.C.
At the end of the February 22nd negotiating session, the Agency agreed to deliver to Building Trades a redlined Monterey Agreement 72 hours before the next negotiating session on March 2.
OTHER AGENCY INVOLVEMENT:
Office of County Counsel.
Due to the late submission of the report, the CAO Budget and Analysis was not provided adequate time to review for potential fiscal, organizational, policy or other implications to the County of Monterey.
FINANCING:
Outside legal expenses are currently estimated at $134,400, and will be paid from Fund 116, subject to reimbursement from the Third Funding and Reimbursement Agreement Amendment No. 1 (pending).
Prepared &
Approved by:
David E. Chardavoyne, General Manager, (831) 755-4860