Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Supervisor Noelia Corzo, District 2
President David Canepa, District 5
Subject: Approval of a Countywide Project Labor Agreement
RECOMMENDATION:
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Adopt a resolution approving a Project Labor Agreement between the County of San Mateo and the San Mateo County Building and Construction Trades Council, along with affiliated unions, which shall apply to all County public works projects awarded over a five-year term, beginning July 1, 2026, with an engineer’s estimate or cumulative bid amount above the monetary thresholds established in the agreement, and authorizing and directing the County Executive, or designee(s), to execute the Project Labor Agreement on behalf of the County and take all steps necessary and appropriate to effectuate and carry-out its terms.
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BACKGROUND:
A Project Labor Agreement (PLA) is a pre-hire collective bargaining agreement that applies to a specific construction project or series of construction projects for the duration of the project(s). It is between the owner of the project(s) and unions representing construction-based trades.
The owner and unions enter into a PLA before the owner solicits bids for construction of the project(s). The PLA is included in the bid documents, and the winning bidder is required to abide by the terms of the PLA. Through the bid documents and the resulting construction contract, the PLA is made applicable to all contractors and subcontractors working on the project(s).
A PLA typically governs the terms, working conditions, and dispute resolution processes for covered projects. This helps to increase the safety and quality of projects and provides for the peaceful settlement of potential labor disputes and grievances without strikes or lockouts, thereby promoting the public interest in assuring the timely and economical completion of projects.
PLAs have been implemented by local governments across the State. The County has historically utilized project-specific PLAs on specific major capital projects, including the Maple Street Correctional Center, County Office Building 3, Parking Structure 2, the San Mateo County Health Campus, South San Francisco Wellness Center, and the Cordilleras Mental Health Facility.
DISCUSSION:
The proposed PLA would apply more broadly to County public works projects awarded over a five-year term, beginning July 1, 2026, with an engineer’s estimate or cumulative bid amount above the following monetary thresholds:
- $3 million or more for projects awarded on or after July 1, 2026
- $2.5 million or more for projects awarded on or after July 1, 2027
- $2 million or more for projects awarded on or after July 1, 2028
- $1 million or more for projects awarded on or after July 1, 2029, with this threshold adjusted annually thereafter based on the California Construction Cost Index
The PLA provides for certain exceptions, including, without limitation, construction work performed by County staff as permitted by the Public Contract Code; maintenance and repair work; emergency work as defined by the Public Contract Code; and where the requirements of the PLA are preempted by law or prohibited by either a lead agency or grant condition.
The PLA, among other things, regulates work stoppages, strikes, and lock outs; helps to guarantee fair wages, benefits, and conditions of employment on projects; and includes provisions for apprenticeship and pre-apprenticeship programs and the hiring of military veterans. Notably, the PLA does not require any employee of a non-union contractor to join a union or to pay dues or fees to a union as a condition of working on a covered project.
The County Attorney has reviewed and approved the PLA and associated Resolution as to form.
COMMUNITY IMPACT:
Approval of the PLA helps to promote the use of skilled labor on County construction projects while providing for the peaceful settlement of labor disputes and grievances without strikes or lockouts, which increases the efficiency of such public projects, encourages labor harmony, improves the safety and quality of work performed, and stabilizes wages, hours, and working conditions for the workers employed.
FISCAL IMPACT:
There is no direct fiscal impact associated with approval of the PLA. However, the fiscal impacts of implementing this PLA cannot be fully determined at this time, as actual costs will depend on future market and labor conditions as well as the number, scope, and timing of projects subject to the PLA.