CITY OF LOS ANGELES JOHN L. REAMER, JR.Inspector of Public Works

BOARD OF PUBLIC WORKS MEMBERS CALIFORNIA

andDirectorKEVIN JAMES

PRESIDENT BUREAU OFCONTRACT ADMINISTRATION

MONICA RODRIGUEZ VICE PRESIDENT

1149 S. BROADWAY, SUITE 300 LOS ANGELES, CA 90015

(213)847-1922HEATHER MARIE REPENNING PRESIDENT PRO TEMPORE

http://bca.lacity.orgMICHAEL R. DAVIS

COMMISSIONERERIC GARCETTI

MAYORJOEL F. JACINTO

COMMISSIONER

FERNANDO CAMPOS EXECUTIVE OFFICER

December 10, 2015Honorable Members of the City Council c/o Holly L. Wolcott, City Clerk 200 N. Spring Street, Room 395 Los Angeles, CA 90012

Honorable Members:

PUBLIC INFRASTRUCTUREBUREAU OF CONTRACT ADMINISTRATION STABILIZATION ORDINANCE AMENDMENTS (COUNCIL FILE 15-1460)

Provided for your consideration is the Bureau of Contract Administration’s suggested amendments for the Public Infrastructure Stabilization Ordinance (PISO).

These amendments will improve the readability of the document while adding clarity, definition, and consistency. Ultimately, these amendments will help to create better understanding among awarding departments and contractors, while eliminating confusion for all parties concerned.

When the original PISO was first approved in 2010 it was a landmark document. Over time it has been used as a model by numerous other agencies in the creation of their own programs. The PISO also successfully contributes to workforce development efforts that facilitate quality project delivery (see attached). The BCA suggests the following amendments:

LIST OF AMENDMENTS

Sec. 10.45. Purpose

Para. 1, Line 1 - Replace opening sentence with: “Each year the City awards hundreds of millions of dollars in public works construction contracts to private contractors.Para. 2, Line 2 - Change: “of the City are achieved, including completion” to “of the City are achieved. These goals include completion”.Para. 2, Line 4 - Change: “with” to “and”.Para. 3, Line 7 - Change: “geographically-concentrated poverty” to “poverty which is geographically concentrated”.Para. 4, Line 1 - Delete: “of improvement” as unnecessary.Para. 4, Line 2 - Modify: “Prevailing Wages Law” to “Prevailing Wage Laws”.Para. 4, Line 2 - Hyphenate: “Davis-Bacon”.Para. 4, Lines 4 and 5 - Change: “with prevailing wage” to “where prevailing wages are paid”.Para. 4, Line 5 - Change: “directly to” to “to directly”.

<7^AN EQUAL EMPLOYMENT OPPORTUNITY EMPLOYER

City Council December 10, 2015 Page 2

Para. 5, Line 6 - Change: “City contractors” to “private contractors who are employed by the City.”Para. 6, Line 10 - Change: “improvement” to “works”.Para. 7, Line 2 - Change: “on” to “titled”.Para. 7, Line 5 - Change: “has” to “had”.Para. 9, Line 4 - Change: “concentrated poverty neighborhoods” to “neighborhoods where poverty is concentrated”.Para. 9, Line 4 - Change: following “pool” toPara. 9, Line 5 - Insert: between “youth” and “by”.Para. 9, Line 5 - Insert: “a” between “earn” and “prevailing”.

Sec. 10.45.1. Definitions

“Area Median Income” (“AMI”) - Delete the definition.“Concentrated Poverty Neighborhood” - Delete the definition.“Contract” - Change: “public work of improvement” to “public works construction project”.Insert: “Construction” means construction, alteration, demolition, installation, or repair work as mandated by Section 1720(a)(1) of the California Labor Code, and including ‘maintenance work’ as mandated by Section 1771 of the Code.“Disadvantaged Worker” - Delete the definition.“Local Resident” - Change to reflect the new criteria: “Local Resident”: (i) means an individual whose primary place of residence is within the City and is within a zip code having at least 2 census tracts (or portions thereof) in which the median annual household income is less than 50% of the Los Angeles County Median Annual Household Income per year, and/or where the rate of unemployment is 200% of the County of Los Angeles’ at the time of application -as reported by the most recent U.S. Census Bureau data; or (ii) means an individual whose primary place of residence is within the City and is within a zip code having at least 2 census tracts (or portions thereof) in which the median annual household income is less than the Median Annual Household Income of the County of Los Angeles and/or the rate of unemployment exceeds 100% of the County of Los Angeles’ at the time of application - unemployment rate as reported by the most recent U.S. Census Bureau data.Insert the definition of Median Annual Household Income.“Project Work” Line 1 - Insert: “by Council controlled departments” between “performed” and “in”.Insert: “Transitional Worker” means an individual whose primary place of residence is within the City of Los Angeles and who prior to commencing work on a Project has been certified as satisfying at least one of the following criteria: (1) having Veteran status; having a documented history of involvement with the criminal justice system; or being homeless. If the Jobs Coordinator or Employer is not able to identify an adequate number of workers using criteria (1), criteria (2) may be used. Criteria (2) is an individual facing two of the following barriers to employment: having a household income less than 50% of the Los Angeles County median annual household income; receiving public assistance; lacking a GED or high school diploma; being a custodial single parent; suffering from long-term unemployment; being emancipated from the

AN EQUAL EMPLOYMENT OPPORTUNITY EMPLOYER

City Council December 10, 2015 Page 3

foster care system; or being an apprentice with less than 15% of the apprenticeship hours required to graduate to journey level in a state (and federal if necessary) approved program.

Sec. 10.45.2 Department-Wide Project Labor Agreement.

• Change: “Department-Wide Project Labor Agreement.” to “City-Wide Project Labor Agreement.”

• Define “City-Wide Project Labor Agreement” as the following: “The Board of Public Works shall approve a Department of Public Works Project Labor Agreement (DPW- PLA) and apply it to qualifying future public works improvement projects in accordance with criteria established by the Board. The DPW-PLA will also serve as the template for all Council-controlled departments to apply on qualifying public improvement projects.”

Sec. 10.45.3 Targeted Hiring.

• Line 3 - Replace “Disadvantaged” with “Transitional”.

The Bureau of Contract Administration believes the potential changes identified in this document will not only strengthen the policy and expand its reach, but they will also provide the potential to achieve an even greater impact and thus better benefits to the people of the City of Los Angeles.

Sincerely,

JOHN DsREAMER, JR., Direct^ J3ureau of Contract Administration

JLR:CJ:bes2015121 Ostabilizationordinanceamendment

Enc.

cc: CJ/chrono/file

ea@as> AN EQUAL EMPLOYMENT OPPORTUNITY EMPLOYER

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Project Labor Agreement

Quarterly ReportDecember 14, 2015

BCA Department of Public Works Bureau of Contract Administration?GjCITY Of 105 ANGELES PWHTMfMT O «*UBl»C WPWC5

iwwm CONTRACT ADMINISTRATIONr JQUALITY - PPORTUNITY • COMPLIANCE

I

Department of Public Works Summary of Projects under Departmental Project labor agreement (PLA)

Total Awarded and Advertised to Bid# of Projects 61

Total $ Amount $714,837,482

Summary of Departmental PLA Projects (2011-present)

Departmental PLA Projects Closed Active Advertised to Bid# of Projects 31 26 4

Total $ Amount $136,033,957 $547,003,525 $31,800,000

Total All Projects (2011-present)

Departmental PLA Goals Closed Active

Local Hire % 43% 40% 41%

Local Apprentice Hire % 75% 62% 67%

Disadvantaged Hire % 24% 21% 22%

2

Active Departmental PLA ProjectsAward

DateContractAmount

Project Status as of 12/2/15Project Prime Contractor

Honeywell 23%$88,600,00002/16/2011 Los Angeles Wastewater Control System Replacement Ftogram (LAWCSRP)

Murray Company 94%$4,422,24301/25/2013 HTP Headworks Screening Handling Improvements and HTF Grit Glassifier Relocation

Murray Company 96%$4,700,00005/17/2013 Hyperion Treatment Plant (HTF) Digester Gas Desulfurization Facility Improvements - (CIF 1027)

Sinanian Development 90%$15,710,00006/26/2013 LAPD Metropolitan Division Police Facility

Bernards Brothers 91%$22,483,90012/13/2013 LAFD New Northeast Area Police Staiton

OHL USA, Inc. 64%$74,800,00001/29/2014 Machado Lake Ecosystem Rehabilitation Project

Constellation Newenergy, Inc. 44%$127,302,00001/21/2014 HTP - Digester Gas Utilization Ftoject (BOS)

Murray Company 59%$5,092,85902/21/2014 HTP - Grit Handling Improvements

Ford, E.C. 54%$5,590,00003/14/2014 HTP - Secondary Clarifiers Upgrade

Kiewit Pacific Company 68%$3,956,00004/11/2014 HTP - Flares Upgrade System CIP 1069

Spinello 87%$15,694,30303/14/2014 NOS Rehab Unit 2 - Western Ave to Vermont Ave & Unit 5 - San F^dro

$34,681,49006/27/2014 LAPD Police Academy Project Replacement Training Facility Kempt Bros. 57%

$4,227,85308/20/2014 West Los Angeles Intercepter Sewer (WLAIS) Rehabilitation - Overland to Kelton Colich & Sons, LP 76%

$7,186,66407/28/2014 COS Rehab - Slauson to Vernon Mladen Buntich Construction Co. 86%

$19,345,50001/28/2015 Slauson Compton Sewer Rehab Colich & Sons, LP 0%

$9,083,00009/22/2014 HTP - Effluent Pumping Plant Header Replacement Kiewit Infrastructure West Co. 75%

$41,560,00004/08/2015 Terminal Island Water Reclamation Plant (TIWRP) Advanced Water Purifcation Facility Walsh Construction Co. 0%

$5,943,68505/06/2015 Terminal Island Water Reclamation Plant (TIWRP) Tertiery Filter Rehabilitation (CIP 5229) J.F. Shea Construction 14%

$5,757,00006/12/2015 Hyperion Treatment Plant (HTP) Truck Loading Facitilty Odor Control Modernization (CIP 2402) Ford, E.C. 3%

$6,236,35805/20/2015 Hawaiian and B, Wilmington, Fries, & San Pedro Pumping Plant Rehabilitation J.F. Shea Construction 0%

$2,703,00005/06/2015 Los Angeles Glendale Water Reclamation Plant (LAGWRP) PPC Construction Inc 0%

$5,859,00007/20/2015 Donald C Tillman Water Reclamation Plant (DCTWRT) Screw Rjmps Installation & Upgrades Kiewit Infrastructure West Co. 0%

$11,975,00009/09/2015 Terminal Island Water Reclamation Plant (TIWRP Aeration System Replacement (CP 5159) Myers & Sons Construction 0%

$5,309,89009/25/2015 HTP Service ^ter Facility South Filter Installation (CIP 2436) J.F. Shea Construction 0%

$7,956,00011/09/2015 Central Los Angeles Recycling and Transfer Station (CLARTS) Stormwater and Safety Improvements Ford, E.C. 0%

$10,827,78011/13/2015 NOS Rehab Unit 3 - Vermont to Trinity Spinello 0%

3

Projects Advertised to Bid with PLA

PLA StatusEstimated

ValueAdvertised toProject Title Type of Project Potential

PLA*BidPIPS List*

✓ ✓$Asphalt Plant Number 1 Municipal Facilities 20,000,000

✓ ✓$Maintenance Yard - South District Facility Municipal Facilities 7,600,000

✓ ✓$Penmar Water Quality Improvement Ph II Stormwater and Water Quality 2,000,000

✓ ✓$Temescal Canyon Park Stormwater BMP Phase II Stormwater and Water Quality 2,200,000

"PIPS PLA" means it was on the originally negotiated Public Infrastructure Project Series (PIPS) list of projects identified for the Department-wide PLA . "Potential PLA" means a project that may potentially have a PLA added to the bid document.

Note: Project and Advertised Information based on "Construction Projects Anticipated to Bid November 2015 through November 2016" (Source: BOE Website)

’i

Active Departmental PLALocal, Local Apprentice, and Disadvantaged Hire Summary(as of December 2015)

Local % Disadvantaged %Apprentice & Local Apprentice %

21%A38% iEBB?62%

79% rLocal

(Goal: 30%)Apprentice (Goal: 20%)

Local Apprentice (Goal: 50%)

Disadvantaged (Goal: 10%)Project Name Total Project Hours

55% 28% 53% 46%Los Angeles Wastewater Control System Replacement Program (LAWCSRP) 36,19836% 16% 75% 24%HTP Headworks Screening Handling Improvements and HTP Grit Glassifier Relocation 15,465

32% 27% 58% 12%Hyperion Treatment Plant (HTP) Digester Gas Desulfurization Facility Improvements - (CIP 1027) 17,598

50% 22% 62% 27%93,530LAPD Metropolitan Division Police Facility

36% 24% 45% 14%LAPD New Northeast Area Police Staiton 116,602

38% 13% 72% 9%Machado Lake Ecosystem Rehabilitation Project 103,014

25% 19% 34% 5%23,656HTP - Digester Gas Utilization Project (BOS)

37% 17% 87% 27%HTP - Grit Handling Improvements 9,765

35% 27% 60% 25%26,361HTP - Secondary Clarifiers Upgrade

62% 26% 97% 45%HTP - Flares Upgrade System CIP 1069 5,087

29% 23% 79% 33%NOS Rehab Unit 2 - Western Ave to Vermont Ave & Unit 5 - San Pedro 33,15146% 28% 66% 24%LAPD Police Academy Project Replacement T raining Facility 142,98329% 13% 85% 21%West Los Angeles Intercepter Sewer (WLAIS) Rehabilitation - Overland to Kelton 7,65634% 31% 95% 18%15,792COS Rehab - Slauson to Vernon

10% 10% 100% 10%83Slauson Compton Sewer Rehab

23% 12% 64% 18%HTP - Effluent Pumping Plant Header Replacement 24,0590% 0% 0% 0%Terminal Island Water Reclamation Plant (TIWRP) Advanced Water Purifcation Facility 032% 39% 80% 1%1,292Terminal Island Water Reclamation Plant (TIWRP) Tertiery Filter Rehabilitation (CIP 5229)

94% 14% 100% 59%812Hyperion T reatment Plant (HTP) T ruck Loading Facitilty Odor Control Modernization (CIP 2402)

0% 0% 0% 0%Hawaiian and B, Wilmington, Fries, & San Pedro Pumping Plant Rehabilitation 00% 0% 0% 0%Los Angeles Glendale Water Reclamation Plant (LAGWRP) 025% 39% 64% 25%452Donald C Tillman Water Reclamation Plant (DCTWRT) Screw Pumps Installation & Upgrades

0% 0% 0% 0%Terminal Island Water Reclamation Plant (TIWRP) Aeration System Replacement (CIP 5159) 00% 0% 0% 0%HTP Service Water Facility South Filter Installation (CIP 2436) 00% 0% 0% 0%Central Los Angeles Recycling and Transfer Station (CLARTS) Stormwater and Safety Improvements 0

0 0% 0% 0% 0%NOS Rehab Unit 3 - Vermont to T rinity

673,555 40% 22% 62% 21%CUMULATIVE for Active Projects

5

Local Hire Worker Summary(as of December 2015)

Count Hours

Local* Non-Local Local* Non-LocalProject Name

Journeyman Apprentice Journeyman Apprentice Journeyman Apprentice Journeyman Apprentice

Los Angeles Wastewater Control System Replacement Program (LAWCSRP) 17 10 46 13 14,382 5,416 11,654 4,746

HTP Headworks Screening Handling Improvements and HTP Grit Glassifier Relocation 18 8 41 10 3,777 1,813 9,277 599

Hyperion Treatment Plant (HTP) Digester Gas Desulfurization Facility Improvements - (CIP 1027) 12 11 48 11 2,835 2,787 9,936 2,040

LAPD Metropolitan Division Police Facility 156 64 389 78 33,948 12,521 39,469 7,591

LAPD New Northeast Area Police Staiton 157 67 539 121 29,910 12,602 58,491 15,600

Machado Lake Ecosystem Rehabilitation Project 107 25 268 30 28,637 9,998 60,518 3,861

HTP - Digester Gas Utilization Project (BOS) 35 17 81 11 4,422 1,506 14,811 2,918

HTP - Grit Handling Improvements 11 4 19 2 2,106 1,469 5,976 215

HTP - Secondary Clarifiers Upgrade 10 12 39 8 4,930 4,221 14,341 2,869

HTP - Flares Upgrade System CIP 1069 10 7 19 2 1,890 1,281 1,882 35

NOS Rehab Unit 2 - Western Ave to Vermont Ave & Unit 5 - San Pedro 17 10 100 18 3,645 5,997 21,876 1,632

LAPD Police Academy Project Replacement Training Facility 172 96 391 94 39,186 26,117 64,046 13,635

West Los Angeles Intercepter Sewer (WLAIS) Rehabilitation - Overland to Kelton 16 4 53 8 1,377 847 5,284 149

COS Rehab - Slauson to Vernon 13 9 74 8 733 4,673 10,116 270

Slauson Compton Sewer Rehab 0 1 5 0 0 8 75 0

HTP - Effluent Pumping Plant Header Replacement 22 11 96 9 3,809 1,819 17,417 1,015

Terminal Island Water Reclamation Plant (TIWRP) Advanced Water Purifcation Facility 0 0 0 0 0 0 0 0

Terminal Island Water Reclamation Plant (TIWRP) Tertiery Filter Rehabilitation (CIP 5229) 1 4 9 2 8 404 777 103

Hyperion Treatment Plant (HTP) Truck Loading Facitilty Odor Control Modernization (CIP 2402) 8 3 1 0 652 112 48 0

Hawaiian and B, Wilmington, Fries, & San Pedro Pumping Plant Rehabilitation 0 0 0 0 0 0 0 0

Los Angeles Glendale Water Reclamation Plant (LAGWRP) 0 0 0 0 0 0 0 0

Donald C Tillman Water Reclamation Plant (DCTWRT) Screw Pumps Installation & Upgrades 0 1 3 1 0 112 276 64

Terminal Island Water Reclamation Plant (TIWRP) Aeration System Replacement (CIP 5159) 0 0 0 0 0 0 0 0

HTP Seivice Water Facility South Filter Installation (CIP 2436) 0 0 0 0 0 0 0 0

Central Los Angeles Recycling and Transfer Station (CLARTS) Stormwater and Safety Improvements 0 0 0 0 0 0 0 0

NOS Rehab Unit 3 - Vermont to Trinity 0 0 0 0 0 0 0 0

782 364 2,221 426 176,247 93,701 346,267 57,340Active PLA Projects Subtotal

741 380 2,142 298 170,415 85,731 309,573 29,077Completed PLA Projects Subtotal

1,523 744 4,363 724 346,662 179,432 655,841 86,416Subtotal

7,354 1,268,351Total* For Departmental PLA Projects, "Local Resident" is defined as "an individual whose primary residence is within Tier 1 or 2 zip code areas."

6

Estimated Wages and Benefits Reinvested into Los Angeles

Total Estimated Wages Reinvested

$17,511,277.12

$14,819,790.67 $2,691,486.45

■ Local Journeyman ■ Local Apprentice

Total Local Journeyman

Hours

Total Local Apprentice

Hours

Estimated Average Hourly Rate: $42.75

Estimated Average Hourly Rate: $15.00

$14,819,790.67 $2,691,486.45346,662 179,432

Data: Records available as of December 2015