Item 51 - Approve Proposed Community Workforce Agreement

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Approve Community Workforce Agreement June 6, 2023 Page 3 3 4 9 5 For projects covered by the CWA, the Unions agree that they shall not incite or encourage, condone, or participate in any strike, walk-out, slow-down, picketing, observing of picket lines, or other activity of any nature, for any cause or dispute whatsoever with respect to or in any way related to covered projects. The Agreement provides for binding arbitration of grievances. Contractors working on projects covered by the CWA must, in filling craft job requirements, utilize and be bound by the registration facilities and referral systems established and authorized by the Unions who are signatory to the CWA. This is commonly referred to as a Union hiring hall. Contractors retain the right to reject any applicant referred to them through the job referral system, determine the competency of all employees, determine the number of employees required, and the duties of such employees. If any Union's registration and referral system does not fulfill the requirements for specific classifications requested by any Contractor within 48 hours, the Contractor may employ applicants meeting such classifications from any other available source. The Unions and Contractors agree, to the extent allowable by law, and as long as they possess the requisite skills and qualifications, to exert their best efforts to refer a sufficient number of skilled Craft local residents, Veterans, and Building Trades Multi- Craft Core Curriculum Pre-Apprenticeship (MC3) Program graduates. The CWA sets forth a goal of 30% of the total work hours shall be performed by local residents with a preference for workers residing within Santa Ana and Veterans regardless of where they reside. If there are not enough Santa Ana residents and Veterans to fulfill the requirements of the employers under the CWA, the Unions shall exert their best efforts to then recruit and identify for referral residents within Orange County and MC3 graduates regardless of where they reside. Administration of the CWA: In accordance with the proposed CWA, the City is the CWA Administrator and is responsible for ensuring contractors comply with the provisions of the CWA. Based on the City’s current and projected CIP, it is estimated that 80% of all dollars spent on CIP projects will be on projects covered by the CWA. To effectively carry out the duties of the CWA Administrator, the City must adequately staff the Construction Management Section and intends to allocate funds for these positions in future budget years. In the interim, the City will engage contractual services to administer the CWA. The estimated annual cost for these contractual services is $150,000. The current fiscal year will not be impacted, and the costs of contractual services will be reflected in future fiscal year budgets. At this time, it is estimated that this CWA will add an additional 10-20% for public works construction project’s construction phase costs. The order of magnitude based on next fiscal year’s proposed CIP is $2.1 million to $4.2 million annually, of which $210,000 to