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HomeMy WebLinkAbout4BDATE: Subject: From: CITY COUNCIL STAFF REPORT APRIL 8, 2021 UNFINISHED BUSINESS DISCUSSION AND POSSIBLE APPROVAL OF A COMMUNITY WORKFORCE AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND SAN BERNARDINO/RIVERSIDE COUNTIES BUILDING AND CONSTRUCTION TRADES COUNCIL, AFL-CIO AND THE SIGNATORY CRAFT COUNCILS AND UNIONS David H. Ready, Esq., Ph.D, City Manager Initiated by: Jeffrey S. Ballinger, City Attorney SUMMARY Pursuant to direction given by the City Council at the February 27, 2020 City Council meeting, this report proposes a Community Workforce Agreement (CWA), to provide goals for local hiring and training programs by contractors on City of Palm Springs public works projects valued at $1 million or more over the next five years. RECOMMENDATION: Discuss and consider approval of a Community Workforce Agreement by and between the City of Palm Springs and the San Bernardino/Riverside Counties Building and Construction Trades Council, AFL-CIO and the Signatory Craft Councils and Unions, including five deal points that remain at issue, as discussed below. BACKGROUND: At the February 27, 2020 City Council meeting, the City Council directed staff to forge a partnership between the City of Palm Springs and the San Bernardino/Riverside Building and Construction Trades Council ("Building Trades Council") as well as other independent labor groups (i.e. Southwest Regional Council of Carpenters) with a goal to create construction jobs for local residents, veterans and minorities on City public works projects valued at $1 million or more. This relationship is envisioned to expand the City's ongoing job creation efforts for the City's public works projects. The partnership is intended to develop skilled workers in the construction industry by capitalizing on opportunities available on larger City-funded public works projects. ITEM NO. lt (:) 1 City Council Staff Report April 8, 2021 -Page 2 Community Workforce Agreement As outlined in the February 27, 2020 staff report (Attachment 1), a key component of the program would be a CWA. The CWA is applied to eligible City of Palm Springs public works projects, to set a goal of hiring local residents working in skilled crafts and trades, who otherwise travel to worksites outside the City for employment, as well as at- risk youth, low income and under/unemployed residents, women, minorities, LGTBQ+ members of the community, and veterans. For the Council's consideration, attached as Attachment 2 is the proposed CWA. The attached CWA is a result of discussions with the Building Trades Council representative and well as representatives from the Southwest Regional Council of Carpenters. The CWA identifies which types of City public works construction projects would be subject to the agreement. The CWA's term is for a period of five years from the effective date. If approved, the CWA will become effective no later than ninety days from the Council action to allow for signatures from the various Building Trade Council members. Some of the key points of the CWA include the following: • Applies to City public works projects of $1,000,000 or more • 5 year term • A goal of 30%, as recommended by the Building Trades Council initial draft CWA, of the total work hours performed on City public works projects subject to the CWA shall be local residents (those within specified CV zip codes), as well as Veterans, regardless of where they reside • The goal is for the career placement of disadvantaged and at-risk youth, low income and under/unemployed residents, women, minorities, LGTBQ+ members of the community, and veterans. The Unions commit to: • Coordinate and participate in City based Career and Apprenticeship Fairs and Events; • Provide Industry Speakers for City Programs and Outreach Events; • Support Local Events and Programs designed to recruit and develop adequate numbers of competent workers in the Construction Industry; • Work cooperatively with the City and Community groups to provide pre- apprenticeship training utilizing Building Trades and Union Apprenticeship readiness Programs. • Incorporates the City's non-discrimination protections (PSMC 7.09.040) • Promotion of programs describing opportunities available for involvement of local residents, entrance into formal labor/management apprenticeships, and available training for students and graduates of the City wishing to pursue careers in construction with such cost to be the responsibility of the members of the Trade Council/Union and contractors • The Trade Council will identity, establish and maintain, effective programs and procedures for persons interested in entering the construction industry • The use of Apprentices, through a Joint Labor Management Apprenticeship Program, up to 30% of each craft's workforce, resulting in a highly skilled and safety conscious project workforce • The City, Trade Council members, and contractors will mutually promote training opportunities to encourage application from Palm Springs residents 2 City Council Staff Report April 8, 2021 -Page 3 Community Workforce Agreement • The City will designate a "CWA Administrator" (either from City's own staff or an independent contractor) to serve as the City's liaison for Contractors and other persons, monitor compliance with the CWA, assist in implementing the CWA • No work-stoppage and lock-out clause, to avoid project disruptions and delays Outstanding Deal Points The City Council's November 12, 2020 agenda included consideration of the CWA. However, due to the number of items on that agenda that night, the City Council was not able to take up the CWA at that meeting. Nevertheless, the City Council received a number of comments from various stakeholders, including those who supported CWAs as well as those who do not support CWAs. As a result of these comments, City staff, the City Attorney and the City Council's Liaisons for Economic Development & Business Retention have since met and discussed with the representatives from the Trades Council regarding some of the issues that were raised by commenters at the November 12, 2020 Council meeting. As a result of those discussions, some revisions to the proposed CWA have been made. These include strengthening the local hire language (Sections 3.5.1, 3.5.2, 3.6), and providing more specifics with regard to the efforts that the Trades Council will be making to promote apprenticeship and career opportunity outreach within Palm Springs (Section 3.5.4). Despite these improvements to the draft CWA, there were also several deal point issues that could not be agreed upon by the City and Trade Council's representatives. These remaining issues include: • An exemption from the applicability of the CWA for local contractors. • A provision allowing the City to terminate the CWA "without cause". • An opportunity for the City to re-bid a project without the CWA if the City does not receive an adequate number of responsive bids, or the bids received exceed the City's cost estimate. • A provision providing for the payment of benefits or "amounts in lieu of benefits" to non-union workers. • A provision protecting the City from being liable for monetary damages. Because these business deal points have not been resolved, it was thought that the City Council should consider these issues and determine whether, as a policy matter, any one or more of these issues, if left unresolved, would hinder the City's ability to enter into the proposed CWA. As such, each of these deal points is addressed below.1 1 Staff and the City Attorney's Office anticipate that the Trades Council representatives will, at some time prior to the City Council meeting at which this item is heard, provide the City Council with their position on each of these items. City staff and the City Attorney certainly welcome the direct input from the Trades Council on these remaining deal point issues, so that the City Council and public will have the opportunity to hear directly from the Trades Council's positions on these issues. 3 City Council Staff Report April 8, 2021 -Page 4 Community Workforce Agreement Exemption from the applicability of the CWA for local contractors One of the stated goals of the CWA is to encourage and provide for the hiring of local contractors and workers. At least one non-union contractor with an office in the City of Palm Springs, and who has performed construction work on City public works projects in the past, requested an exemption from the applicability of the CWA for local non- union contractors. City staff and the City Attorney's Office agree that this is a reasonable request. As such, the City Attorney's Office have drafted such an exemption, as proposed new section 2.5.11: "2.5.11 Local Contractor. This Agreement shall not apply to work performed by any local contractor. For purposes of this subsection 2.5.11, a contractor shall be deemed to be "local" if that contractor meets any one of the following criteria: (a) the contractor has a principal headquarters or permanently staffed regional office physically located within the City and has held a City of Palm Springs business license for at least six (6) months prior to the date of its bid. For purposes of this subparagraph (a), a post office box alone does not qualify as a physical presence. (b) the owner(s) who hold more than fifty percent (50%) ownership interest in the contracting company reside within Palm Springs; or (c) more than fifty percent (50%) of the employees of the contracting company reside within Palm Springs." The Trade Council's representatives have indicated that they could not agree to such an exemption. According to the Trades Council representatives, local hire goals are but one of the many benefits that arise from a CWA, and exempting a contractor, simply because that contractor is local to Palm Springs would avoid the other benefits of the CWA applying to that contractor. For example, another community benefit of the CWA is the encouragement of the use of union workers on public works projects. Exempting a local contractor from the application of the CWA, simply because the contractor is local, according to the Trades Council, will result in that community benefit potentially not being realized (assuming the local contractor is not a union contractor). An important point here, however, is that if a non-union local contractor (or any non- union local subcontractor of any tier) is not exempted from the CWA and chooses to bid on, and is awarded, a contract subject to the CWA, that non-union local contractor (or non-union local subcontractor of any tier) would be required to alternate hiring of employees for the project, over its 5 core employees, between its own workforce and the union hiring hall (on a 1 to 1 basis up to 10 total employees). Further, the CWA limits such a contractor ( or subcontractor) to retaining a maximum of 5 core employees from its own workforce for the project (after retaining another 5 employees through the union hiring hall's referral system). To the extent more than 1 O employees are required for the project (5 core employees retained by the non-union contractor and 5 referred union employees), all additional employees must be hired by the non-union local 4 City Council Staff Report April 8, 2021 -Page 5 Community Workforce Agreement contractor through the union hiring hall's referral system. The effect of this process will be to reduce the number of core non-union local contractor employees who would otherwise be employed to work on the City's project with members referred to that contractor through the union hiring hall's referral system (see section 3.8). It should also be noted that this section 3.8 also limits who a non-union contractor can define as a "core employee" by requiring (among other things) that a core employee worked 60 of the last 100 working days immediately before award of the contract and were also living in Riverside County for 100 working days immediately prior to award of the contract. Therefore, the Council should consider whether it wishes to exempt local contractors from the application of the proposed CWA. Termination "Without Cause" In municipal government, termination "without cause" provisions are commonplace. In the case of a CWA, City staff and the City Attorney's Office believe that, if (for example) the CWA proves, after some time, to not yield the results that were anticipated, or if the administrative costs and effort required to remain a party to the CWA prove higher than desired by the City, the City should be able to extricate itself from the relationship, without legal or monetary liability. Yet, no CWA entered into by any other local public agency has been found that contains a termination without cause. And, the Trades Council representatives have indicated that they would not be able to agree to the inclusion of such a provision. According to the Trades Council representatives, the Trade Council and its members will be investing time and money into meeting their obligations under the CWA, and they believe that it would be unfair to them to allow the City to exit the Agreement without cause. In addition, they believe that the City would have adequate protections to guard against the Trades Council not meeting its obligations under the CWA. Finally, the Trades Council has provided a summary of nine (9)2 recently bid projects in the City of Perris, which has a CWA. (See Attachment 3). Three (3) of the four (4) CWA projects received bids under the engineer's estimate, while only two (2) of the five (5) non-CWA projects came in with bids under the engineer's estimate. City staff and the City Attorney disagree with the Trades Council's position, and therefore would seek Council direction as to whether the inclusion of such a clause is necessary for the City Council to agree to enter into the CWA. Alternatively, the City Council could consider a shorter-term for the CWA (e.g. 2 years) without a termination clause. A shorter term will give the City an opportunity to competitively bid some of its applicable public works projects and determine if the benefits gained through imposing the CWA on the bids are realized. 2 The summary actually includes ten (10) projects, but because one of those projects (a non-PWA project) apparently did not have an engineer's estimate, it is of doubtful relevance with regard to the relationship to the engineer's estimate. However, that non-PW A project did result in one bid to the City. 5 City Council Staff Report April 8, 2021 -Page 6 Community Workforce Agreement Opportunity to Re-bid if Not Enough Responsive Bids Another clause providing the City with protection against higher than expected costs that might result from the CWA is a clause that provides that the City may proceed with bidding an otherwise covered public project if either of two situations arise: • If the City does not receive bids from at least three (3) responsible contractors; or • If the lowest bid is more than ten percent (10%) of the engineer's estimate. Below is the proposed language: "2.5.12 Lack of Adequate Bids. In the event the City does not receive bona fide bids on otherwise Covered Work on or before the deadline for receiving such bids from at least three (3) responsible Contractors or the lowest responsive and responsible bid on a Covered Project is in excess of ten percent (10%) of the engineer's estimate, the City reserves the right to reject all bids and re-advertise the Project with or without the application of th is Agreement." A provision similar to this was included in a 2016 Project Labor Agreement approved by the Sweetwater Union High School District, in San Diego County. Notwithstanding the fact that another Trades Council has agreed to include this language in another local agency's agreement, the San Bernardino/Riverside Trades Council has indicated that the crafts within this Trade Council would not agree to such language, since it would have the potential effect of limiting the application of the CWA. The Trades Council has also stated that other local cities (Perris and Moreno Valley) have entered into CWAs recently and have not had unexpected cost results. However, those two cities have not had enough projects to determine the effects of a CWA on their project costs. For example, as of November 2020, the City of Perris had contracted for only two projects that were subject to the CWA. Therefore, in the opinion of City staff and the City Attorney, there is not enough experience in the region to proceed with a CWA without this sort of protection for the City. Payment of Benefits/Amount In Lieu of Benefits to Non-Union Workers One issue raised by several stakeholders was the fact that Section 5.2 of the proposed CWA requires non-union contractors to pay into union health and retirement plans, even though those non-union contractors may never receive any benefit from such contributions. The City Attorney's Office has drafted language in Section 5.2, based on language agreed to by Santa Barbara County, which would instead provide that a non-union contractor provide its employees with either compensation in an amount equal to the benefits that would otherwise be paid to the union health/retirement plans or actually contribute to those workers' benefit plans. As a result, non-union workers would receive 6 City Council Staff Report April 8, 2021 -Page 7 Community Workforce Agreement the benefit of those payments. A similar approach was agreed to by a 2010 San Diego Union High School District with the Trades Council in that County. It should be noted that all City public works projects that will otherwise be subject to the CWA are currently subject to state prevailing wage rates. The state prevailing wage rates currently paid to all contractor employees awarded a contract for a City public works project include the minimum wage plus fringe benefits for health, paid leave and other benefits. The applicability of Section 5.2 would be to redirect payment of fringe benefits directly to non-union contractor employees and to pay those to the union health and retirement plans. In order for those same non-union contractor employees to make use of those fringe benefit payments, those employees would be required to become members of the applicable union, work the prescribed minimum number of working days, and otherwise qualify for receipt of the union hall's fringe benefits. There is no guarantee that all or any of the non-union contractor employees employed on the City's public works projects during the term of the CWA will have the opportunity to receive the benefit of the fringe benefit payments previously paid directly to them that have instead pursuant to the CWA been paid directly to the union health and retirement plans for the benefit of the union contractor's employees. The San Bernardino/Riverside Trades Council has indicated that it would not agree to such a provision. According to the Trades Council, one of the community benefits of a CWA is the encouragement of the use of union workers on public works projects. By essentially granting to non-union workers the health/retirement benefits (or payments in lieu thereof) that have been fought for by the unions, this would dis-incentivize workers from forming and/or joining unions, especially younger workers who might find more short-term value in an in-lieu payment over the long-term benefits of a health/retirement plan negotiated by the unions. Again, the City Council is being asked to determine, as a policy matter, whether it wishes to enter into an agreement that requires non-union contractors to pay into union health and retirement plans, even though those non-union contractors may never receive any benefit from such contributions. Or, would the City Council prefer language similar to that provided by the Santa Barbara County Contract, which helps ensure that non-union workers receive the value of these benefits payments. Immunity from Monetary Damages Because the City has never entered into an agreement such as the proposed CWA, City staff and the City Attorney's Office are concerned that there could be unknown monetary liabilities that could arise from a potential breach by the City, even if such breach were inadvertent. As a result, the City Attorney's Office has provided a clause, common in land-use development agreements, which provides that the City will not be liable, monetarily, for any potential breach by the City in the future. The other parties to the CWA would still be able to pursue other legal remedies, such as declaratory relief (when a court decides something) or injunctive relief (where a court orders a party to do/not do something). However, under the proposed language, the City would not have to pay monetary damages. 7 City Council Staff Report April 8, 2021 -Page 8 Community Workforce Agreement The Trades Council has responded that such a provision would give the City cart blanche to disregard the CWA, and would set a precedent for such language to appear in other CWAs. However, as discussed above, the Trades Council would still have other legal remedies, including asking a court to declare a breach and order the City to do something that happens to be called for in the CWA. As such, the City Attorney and City staff believe that this provision adequately protects both parties. Because there is not agreement on this deal point, City Council is being requested to decide whether having this protection in the CWA is important to the City Council. In conclusion, City staff and the City Attorney would request that the City Council consider these five (5) remaining deal point issues, and decide whether one or all of them is necessary for inclusion in any CWA that the City Council could approve. ENVIRONMENTAL IMPACT: The requested City Council action is not a "Project" as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (2) "Continuing administrative or maintenance activities, such as purchases for supplies, personnel- related actions, general policy and procedure making .... " This CWA constitutes such procurement and general policy and procedure making. FISCAL IMPACT: As discussed in the February 27, 2020 staff report, there is conflicting information regarding the fiscal impacts of Community Workforce Agreements and Labor Peace Agreements. Some reports estimate that Community Workforce Agreements may increase the cost of public works projects anywhere from 7% to 20%. On the other hand, conversations with local contractors have indicated that there may be only insignificant increases. Finally, no studies have been found that account for the secondary impacts of CWAs, in terms of the benefits to the community resulting from increased employment and apprentice opportunities. As such, it is not possible to say definitively what the fiscal impacts of these agreement programs are. The CWA includes tasks for an Administrator, which would be the responsibility of the City. Generally, the industry standard costs for monitoring a CWA is between 0.70 percent and 1.33 percent, depending on the size of the project or the cost of construction. Therefore, City staff believes that a midpoint of 1 percent of the project costs would be a reasonable estimate for the administrative staff support costs of the CWA Administrator. These additional costs will be reflected in future City public works project cost estimates and budgets. Finally, while it is difficult to quantify and validate the full impact the CWA may have on construction bids since there are several factors that drive bid amounts, to include the economy, complexity of the project, availability of qualified contractors, over or under 8 City Council Staff Report April 8, 2021 -Page 9 Community Workforce Agreement saturation of work available, etc., by entering into the CWA, there will be indirect economic benefits to the community with the provision for local hire. In addition, the education and workforce training for the City's residents and veterans will allow increase economic prosperity and opportunities for the City's residents and veterans. SUBMITTED: Marcus L. Fuller, MPA, P.E., P.L.S. Assistant City Manager - fig yt{all ~ City Attorney ATTACHMENTS: 1. February 27, 2020 City Council Staff Report ~ ~~ ~ David H. Ready, Esq.~ City Manager 2. Proposed Community Workforce Agreement 3. Summary of City of Perris Projects 9 ATTACHMENT 1 10 ATTACHMENT 2 11 ATTACHMENT 3 12 Citv Council Staff ReQort i. Date: February 27, 2020 NEW BUSINESS Subject: DISCUSSION REGARDING COMMUNITY WORKFORCE AGREEMENTS AND LABOR PEACE AGREEMENTS From: David H. Ready, City Manager Initiated by: Jeffrey S. Ballinger. City Attorney SUMMARY At the January 13, 2020 Business Retention Standing Subcommittee, the Subcommittee heard a presentation regarding Community Workforce Agreements (CWA) and Labor Peace Agreements. The Subcommittee also heard from various stakeholders. including representatives of labor groups and the business community. Based on that discussion. the Subcommittee recommended that the City Council conduct a discussion of CWAs and Labor Peace Agreements, in order to possibly provide direction to City staff to bring back policies that would require such agreements for City projects. RECOMMENDATION: Provide direction to staff regarding the applicability of CWAs and/or Labor Peace Agreements. BACKGROUND: In the public sector, a Community Workforce Agreement is a variation of a Project Labor Agreement (PLA). A PLA is pre-hire, collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project or class of projects. A Community Workforce Agreement (CWA) is a PLA that includes a targeted hire provision designed to create local jobs and/or achieve other social welfare goals through the construction projects they apply to. Such social welfare goals can include targeted hiring of low-income individuals, veterans, former offenders, residents of low-income neighborhoods, at-risk youth, and (for projects with federal funds) percentage goals for racial minorities and women. ITEMNO. 5~ 13 City Council Staff Report February 27, 2020 -Page 2 Community Workforce Agreements and Labor Peace Agreements A Labor Peace Agreement, at least as defined by California cannabis law, is defined as an agreement between a cannabis licensee and any bona fide labor organization that, at a minimum, prohibits labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicant's business. (Bus. & Prof. Code, § 26001{x).) This agreement must include a provision that the cannabis business has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the business' employees. The agreement must also provide a bona fide labor organization access at reasonable times to areas in which the business' employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. Finally, under state law, the agreement need not mandate any particular method of election or certification of the bona fide labor organization. This staff report discusses each of these types of agreements and the social, fiscal and legal issues involved with each of them. STAFF ANALYSIS: Community Workforce Agreements As mentioned above, a Community Workforce Agreement is a pre-hire, collective bargaining agreement with one or more labor organizations that is designed to achieve one or more social welfare goals. The predecessors of these agreements, PLAs, have been in use in the United States since the 1930s. PLAs first became the subject of significant public debate in the 1980s. In these instances, government entities made signing PLAs a condition of working on taxpayer funded projects. This type of PLA, also known as a government-mandated PLA, is technically distinct from a PLA that is voluntarily entered into by contractors on public works project. However, for purposes of this discussion, all references to CWA or PLA will refer to CWAs or PLAs that are required by a city program. The use of CWAs is supported by many construction unions, and some policymakers, who posit that CWAs are needed to ensure that large, complex projects are completed on time and on schedule. According to those who support the use of such agreements, CWAs enable project owners to control costs and ensure that there are no disruptions to the construction schedule, for example from strikes. In particular, proponents of CWAs point to the inclusion of clauses in the agreement that agree to establish labor management problem-solving committees that deal with scheduling, quality control, health and safety, and productivity problems during the project. They also argue that CWAs ensure that the workforce hired has received training and is of high quality. In addition to the stated benefits to project owners, supporters of CWAs also argue that CWA use has a positive impact on local communities, through set goals for local hiring and provision of education. One issue that frequently arises during discussions of CWAs is cost. Those who oppose CWAs argue that CWAs impact competition for project bids, reducing the 2 14 City Council Staff Report February 27, 2020 -Page 3 Community Workforce Agreements and Labor Peace Agreements number of potential bidders as non-union contractors, they argue, are less likely to bid due to the potential restrictions a CWA would pose. According to opponents of CWAs, the re~uced competition leads to higher bids and a higher cost for the project owner. For example, according to Max Lyons of the Employee Policy Foundation, the cost of a project under a CWA is increased up to 7%, since in many cases contractors are required to pay their employees the union wage, rather than the government- determined prevailing wage. (Tuerck, David G. (Winter 2010) "Why Project Labor Agreements Are Not In The Public Interest". Cato Journal.) Other studies out of Massachusetts, Connecticut and New York concluded that PLA increase construction costs by as much as 20%. (Beacon Hill Study Finds PLAs Increase Cost of School Projects in New York (May 2006).) In response, supporters of CWAs point out that, by including requirements for targeted hiring or a certain proportion of local workers to enter union apprenticeship programs working on the construction program, CWAs can be used to help local workers gain employment and trade skills. This, proponents point out, re-injects the tax dollars paying for these infrastructure projects back to the communities. (UCLA Labor Center, "Construction Careers for our Communities." p. 5, 46"; Cornejo, Jackie. Building Opportunity: Investing in Our Future through a Port Construction Careers Policy. Los Angeles Alliance for a New Economy (2009)"; Project Labor Agreements in Iowa: An Important Tool for Managing Complex Public Construction Projects, Ralph Scharnau & Michael F. Sheehan, The Iowa Policy Project (2004)".) Results of studies addressing the cost impact of CWAs on construction projects have varied. For instance, one such study found that they may not lead to greater costs, such as a 2002 paper by the Harvard University Joint Center for Housing Studies, which states that the increased costs cited by opponents of CWAs is based on bids rather than end costs. According to the paper, a project's end costs would usually be higher than bid costs due to expenses that arise during construction. (Project Labor Agreements. John T. Dunlop, Harvard University Joint Center for Housing Studies (2002).) In addition, a 2004 report by the Director of General Services for Contra Costa County, California reported that bids for five of eight projects subject to a CWA were lower than the architect/engineer cost estimate. A 2009 paper concluded that there was difficulty in identifying the effect of CWAs on cost in construction of schools, due to the differences between schools built with CWAs and those built without them. The report stated that there was not any statistically significant evidence for an increase in costs for school construction. (Project Labor Agreements' Effect on School Construction Costs in Massachusetts.) Likewise, in 1998 the Government Accountability Office produced a report on CWAs that noted an overall lack of data but reported that both "proponents and opponents of the use of [CWAs] said it would be difficult to compare contractor performance on federal projects with and without [CWAs] because it is highly unlikely that two such projects could be found that were sufficiently similar in cost, size, scope, and timing." The GAO report concluded that it would be difficult to draw "any definitive conclusions" on the impact of PLAs on performance. (Project Labor Agreements: The Extent of Their Use and Related Information. U.S. General Accounting Office, GAO/GGD-98-82, May 1998.) 3 15 City Council Staff Report February 27, 2020 -Page 4 Community Workforce Agreements and Labor Peace Agreements Finally, recent discussions with several local contractors have suggested that costs to City public works projects would not increase appreciably, since contractors and subcontractors are already required to pay State or federal prevailing wages, and in many cases, contractors are already using union labor. Staff was able to perform research and found examples of CWAs in other jurisdictions. Among the examples are: Jurisdiction Year Long Beach City 2016 College Community 2008 Redevelopment Agency of Los Angeles Los Angeles 2001 Community College District San Francisco 2003 Public Utilities Commission Water System Improvement Proaram City of Los Angeles 2001 Type of Project Specified College building projects, including buildings, a parking structure, an aquatics center, and security systems. Public works projects of $500,000 or more. Projects on CRA land. Private projects receiving $1,000,000 or more from CRA. General construction projects receiving at least $225,000 in school bond funds. Specialty construction projects receiving at least $25,000 in school bond funds. All construction work on the Hetch Hetchy Water System upgrade. Any work on certain, specific City public works projects-North East Sewer Interceptor, Fire Station 64, Harbor Community Benefit 40% goal for veterans' and local residents' employment, which includes a goal of 15% for local residents within district boundaries. 5% goal for Small Business and Minority/Women-owned Enterprises to participate as contractors or SUDDliers. 30% of all work hours under the agreement to be performed by residents of law-income neighborhoods. 10% of the total work hours are reserved for at-risk and hard-to- employ workers. Apprentice work hours by Community Area and Local Residents. 30% of work hours on covered construction to be performed by workers that live in the same zip code as the project, with further targeting of some jobs at-risk job seekers. 30% of work hours should be performed by apprentices, and half of all apprentices that work on these jobs in their first year Contractors must exercise "good faith effortsn to employ apprentices in amounts consistent with State standards. 30-40% of new construction jobs created be filled by residents of neighborhoods adjacent to the project. 10-15% of construction work hours 4 16 City Council Staff Report February 27, 2020 -Page 5 Community Workforce Agreements and Labor Peace Agreements Los Angeles Unified 2003 School District Port of Oakland 2001 City of Santa Ana 2017 San Francisco 2007 Station/Jail, Metro Detention Center, Police Administration Building, etc. New or Rehabbed School Construction funded by local school bonds. All work under the Port's 5 Year capital program, as well as unplanned projeds of $50,000 or more Construdion or demolition work on City public works projects, over $250,000 for specialty work or $500,000 for general work. Construdion work on be performed by at-risk workers, including workers from poor households and workers with a history of incarceration or receipt of public assistance, among other thinas. 50% of the work hours be performed by residents of zip codes served by one of the 8 school districts that make up the unified district. 30% of the work be completed by apprentices. The school district also operates a pre-apprenticeship program, We Build, overseen by a joint labor- management board. Program delivers a 10-week skills and safety training curriculum developed in conjunction with the Building Trades. There is no requirement that contractors hire their workforce through We Build. However, the pre- apprenticeship program provides a pipeline of trained and oriented workers, many of whom meet the targeting requirements established by the CWA. We Build's training model enables its graduates to better compete with other aspiring apprentices. The program boasts a 90% olacement rate. 50% of all construdion hours be worked by residents of the Port's local impact area, which includes the neighboring communities of Alameda, Emeryville, Oakland and San Leandro. 20% of all hours worked be performed by apprentices from the local impact area, providing an entry- point into construction careers for new and aspiring construction workers. 30% of the total works hours to be performed from workers residing within the City, and Veterans regardless of where they reside. Apprentices with certain requirements generally to constitute up to 30% of each craft's workforce. Goal that 20% of work hours be 5 17 City Council Staff Report February 27, 2020 -Page 6 Community Workforce Agreements and Labor Peace Agreements Public Utilities Commission City of New York 2009 City of Perris 2018 Cleveland Hospital University performed by Cleveland residents. Renovation and rehabilitation of city- owned buildings; Eleven large-scale new construction projects, including the Police Academy and a branch library, among others; Funding for renovation and rehabilitation of New York Public Schools, overseen by the New York City School Construction Authority; Renovation and rehabilitation of water systems facilities controlled by the New York City Department of Environmental Protection. City public works projects of $1,000,000 or more. Additionally, the agreement formalizes the existing relationship between the local Trades Council and the pre-apprenticeship curriculum offered to 9-12 grade students at Max S. Hayes Vocational High School. The unions agree to participate in development of the curriculum at Max Hayes, and to use reasonable efforts to require contractors and unions to provide jobs to Max Hayes building trades graduates. The trades agree to devote one class of the joint labor- management pre-apprenticeship program to Max Hayes building trades graduates. Graduates receive direct entry into union construction apprenticeships. Those graduates who get into the program by virtue of graduation from Max Hayes high school are to be employed on University Hospital construction projects that are covered by the CWA. 45% of new apprentice slots be filled by New York City residents including public high school graduates, veterans, women, housing authority and Section 8 residents, and adults in need of economic opportunity. A commitment that affiliated unions will reserve apprenticeship slots for direct entry of these groups, meaning that qualified apprenticeship candidates who are also a member of one of these named groups have an easier time getting into an apprenticeship program. 30% of the labor and craft positions be workers residing within the City and local zip codes 18 City Council Staff Report February 27, 2020 -Page 7 Community Workforce Agreements and Labor Peace Agreements 10% be disadvantaged workers and/or veterans residing within the City or County. Goal that 30% of total worked hours be by workers residing within the City and local areas, as well as veterans, regardless of residence. Therefore, should the City Council wish to proceed with implementing a CWA program, the first issue to be resolved is, what one or more types of community benefits does the City Council wish to achieve? Is it local hires, veteran hires, lower income hires, apprenticeship opportunities? These are all legitimate social welfare benefits that can accrue to a community as a result of a CWA program. The next issue to be resolved is what size of City projects (usually measured in dollars) does the City Council wish to be subject to CWAs. Some, but not all, of the above- referenced projects include a dollar threshold, i.e., $250,000, $1,000,000, $100,000,000. While such a threshold is not necessary, the City Council may want to consider such a threshold, if the Council wishes to proceed incrementally. Labor Peace Agreements Unlike Community Workforce Agreements, Labor Peace Agreements do not specifically require the use of union labor. Instead, Labor Peace Agreements set out general parameters of a workplace environment within which unionization can be fostered (though not required). So, for example, under California's cannabis statutes, cannabis operators with 20 or more employees must provide a notarized statement that the operator will enter into, or has already entered into, and will abide by a Labor Peace Agreement. The state definition of a Labor Peace Agreement is an agreement between a cannabis licensee and any bona fide labor organization that, at a minimum, prohibits labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicant's business. (Bus. & Prof. Code, § 26001(x).) The agreement must include a provision that the cannabis business has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the business' employees. In addition, the agreement must also provide a bona fide labor organization access at reasonable times to areas in which the business' employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. Finally, the Labor Peace Agreement need not mandate any particular method of election or certification of the bona fide labor organization. Some cities have recently adopted ordinances that reduce the minimum number of employees of cannabis businesses from 20, to a lower number. For instance, Cathedral City recently adopted an ordinance that requires cannabis operators with 10 or more employees to enter into a Labor Peace Agreement. See Attachment 1. Likewise, the City of Pomona has adopted an ordinance that requires cannabis 7 19 City Council Staff Report February 27, 2020 -Page 8 Community Workforce Agreements and Labor Peace Agreements permittees with 5 or more employees to enter into, and abide by, a labor peace agreement. See Attachment 2. A proposed draft ordinance similar to Cathedral City's is attached, for discussion purposes, as Attachment 3. Like PLAs or CWAs, Labor Peace Agreements have withstood legal challenges when the public agency imposing them is doing so to protect a proprietary, as opposed to a regulatory interest. At the state level, the State of California is asserting a proprietary interest in the significant sums of tax revenue that are expected to be received from the cannabis industry. Again, as with the PLAs/CWAs, as the application of Labor Peace Agreements moves away from the City's proprietary interests and towards its regulatory interests, the legal issues become less clear. Therefore, the City Council is being asked to consider whether to extend the application of the State's Labor Peace Agreement requirement to those cannabis businesses that employ fewer than 20 employees. ENVIRONMENTAL IMPACT: The requested City Council action is not a "Project" as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (2) "Continuing administrative or maintenance activities, such as purchases for supplies, personnel- related actions, general policy and procedure making .... " Should the City Council provide direction to bring back a program to implements CWAs and/or labor peace agreements, such action would constitute general policy and procedure making. 8 20 City Council Staff Report February 27, 2020 -Page 9 Community Workforce Agreements and Labor Peace Agreements FISCAL IMPACT: As discussed above, there is conflicting information regarding the fiscal impacts of Community Workforce Agreements and Labor Peace Agreements. Some reports estimate that Community Workforce Agreements may increase the cost of public works projects anywhere from 7% to 20%. On the other hand, conversations with local contractors have indicated that there may be only insignificant increases. Finally, no studies have been found that account for the secondary impacts of CWAs, in terms of the benefits to the community resulting from increased employment and apprentice opportunities. As such, it is not possible to say definitively what the fiscal impacts of these agreement programs are. Marcus L. Fuller, MPA, P.E., P.L.S. Assistant City Manager/City Engineer City Attorney ATTACHMENTS: < J-:Z ~ -a.----~ ,, David H. Ready,E. City Manager 1. Cathedral City Cannabis Labor Peace Agreement 2. Pomona Cannabis Labor Peace Agreement 3. Draft City of Palm Springs Cannabis Labor Peace Agreement 9 21 COMMUNITY WORKFORCE AGREEMENT BY AND BETWEEN THE CITY OF PALM SPRINGS AND SAN BERNARDINO/RIVERSIDE COUNTIES BUILDING AND CONSTRUCTION TRADES COUNCIL, AFL-CIO AND THE SIGNATORY CRAFT COUNCILS AND UNIONS City of Palm Springs CWA 55575.18100\33346385.2 1 22 TABLE OF CONTENTS Page ARTICLE 1 DEFINITIONS 3 ARTICLE 2 SCOPE OF THE AGREEMENT 5 ARTICLE 3 UNION RECOGNITION AND EMPLOYMENT 8 ARTICLE 4 UNION ACCESS AND STEWARDS 12 ARTICLE 5 WAGES AND BENEFITS 13 ARTICLE 6 HOURS OF WORK, OVERTIME, SHIFTS AND HOLIDAYS 14 ARTICLE 7 WORK STOPPAGES AND LOCKOUTS 16 ARTICLE 8 WORK ASSIGNMENTS AND JURISDICTIONAL DISPUTES 20 ARTICLE 9 MANAGEMENT RIGHTS 21 ARTICLE 10 SETTLEMENT OF GRIEVANCES AND DISPUTES 23 ARTICLE 11 REGULATORY COMPLIANCE 25 ARTICLE 12 SAFETY AND PROTECTION OF PERSON AND PROPERTY 25 ARTICLE 13 TRAVEL AND SUBSISTENCE 26 ARTICLE 14 APPRENTICES 26 ARTICLE 15 WORKING CONDITIONS 27 ARTICLE 16 PRE-JOB CONFERENCES 28 ARTICLE 17 LABOR/MANAGEMENT COOPERATION 28 ARTICLE 18 SAVINGS AND SEPARABILITY 29 ARTICLE 19 WAIVER 29 ARTICLE 20 AMENDMENTS 29 ARTICLE 21 DURATION OF THE AGREEMENT 30 ATTACHMENT A-LETTER OF ASSENT 33 ATTACHMENT B -ZIP CODES 34 ATTACHMENT C-CRAFT REQUEST FORM 39 ATTACHMENT D -LIST OF NEUTRAL ARBITRATORS 41 City of Palm Springs CWA 55575.18100\33346385.2 2 23 CITY OF PALM SPRINGS COMMUNITY WORKFORCE AGREEMENT This Community Workforce Agreement ("Agreement") is entered into effective as of ____ ., 2020, by and between the City of Palm Springs, a municipal corporation ("City"), the San Bernardino/Riverside Counties Building and Construction Trades Council ("Trades Council"), and the signatory Craft Councils and Local Unions signing this Agreement (collectively, the "Union" or "Unions"). This Agreement establishes the labor relations policies and procedures for the City, the Contractors awarded contracts for Project Work and for the crafts persons employed by the Contractors and represented by the Unions engaged in the Project Work as more fully described below. The City, Trades Council and Unions are hereinafter referred to herein, as the context may require, as "Party" or "Parties." It is understood by the Parties to this Agreement that for the duration of this Agreement, it shall be the policy of the City, to the extent permitted by law, for all Project Work (as defined in Sections 1.9 and 2.2.) to be contracted exclusively to Contractors who agree to execute and be bound by the terms of this Agreement, directly or through the Letter of Assent ( a form of which is attached as "Attachment A"), and to require each of its subcontractors, of whatever tier, to become so bound. The City shall include, directly or by incorporation by reference, the requirements of this Agreement in the advertisement of and/or specifications for each and every contract for Project Work to be awarded by the City. It is further understood that the City shall actively administer and enforce the obligations of this Agreement, again to the extent permitted by law, to ensure that the benefits envisioned from it flow to all Parties, the Contractors and crafts persons working under it, and the residents of the City. The City shall therefore designate a "CW A Administrator," either from its own staff or an independent contractor, to serve as the City's liaison for Contractors and other persons; monitor compliance with this Agreement; assist, as the authorized representative of the City, in developing and implementing the programs referenced herein, all of which are critical to fulfilling the intent and purposes of the Parties and this Agreement; and to otherwise implement and administer this Agreement. ARTICLE 1 DEFINITIONS Section 1.1 "Agreement" or "CWA" means this Community Workforce Agreement. Section 1.2 "Apprentice" means those employees indentured and participating in a Joint Labor/Management Apprenticeship Program approved by the State of California, Department of Industrial Relations, and Division of Apprenticeship Standards. Section 1.3 "Construction Contract" or "Construction Contracts" means any contract entered into by the City, for the construction of Project Work as specified in Section 2.2. Section 1.4 "Contractor" means any individual firm, partnership or corporation, or combination thereof, including joint ventures, which is an independent business enterprise and 3 City of Palm Springs CWA 55575.18100\33346385 .2 24 which has entered into a Construction Contract with the City or any of its contractors or any of the City's or contractor's subcontractors of any tier, with respect to the construction of any part of a Project under contract terms and conditions approved by the City and which incorporate this Agreement. Section 1.5 "City" means the City of Palm Springs. Section 1.6 "Joint Labor/Management Apprenticeship Program" means a joint Union and Contractor administered apprenticeship program certified by the State of California, Department of Industrial Relations, and Division of Apprenticeship Standards. Section 1. 7 "Letter of Assent" means the document that each Contractor ( of any tier) must sign and submit to the City before beginning any Project Work, which formally binds such Contractor( s) to adherence to all the forms, requirements and conditions of this Agreement in the form attached hereto as "Attachment A." Section 1.8 "CW A Administrator" means the City's authorized representative who will be the liaison between the City, Contractors, and the Unions; responds to inquiries about the CWA; charged with monitoring compliance with the CW A, developing and implementing programs set forth in the CW A including but not limited to grievance procedures. Section 1.9 "Project", "Project Work" or "City Project" means the demolition and construction work to be performed on City property or within easements secured by the City consisting of the construction of public works, pursuant to a Construction Contract entered into by the City, that are estimated by the City to exceed One Million Dollars ($1,000,000), as determined by the City. Projects that are estimated by the City not to exceed $1,000,000 shall not be a Project, Project Work or City Project, and shall not be subject to this Agreement. Section 1.10 "Specialty Contracts" means a contract for Project Work with a specialty contractor which is either limited to a particular single trade or craft or limited to a singular scope of work (i.e. installing a toilet.) Section 1.11 "Master Labor Agreements" means the local collective bargaining agreements of the signatory Unions having jurisdiction over the Project Work and which have signed this Agreement. Section 1.12 "Subscription Agreement" means the contract between a Contractor and a Union's Labor/Management Trust Fund(s) that allows the Contractor to make the appropriate fringe benefit contributions in accordance with the terms of the Master Labor Agreements. Section 1.13 The use of masculine or feminine gender or titles in this Agreement should be construed as including both genders and not as gender limitations unless the Agreement clearly requires a different construction. Further, the use of Article titles and/or Section headings are for information only, and carry no legal significance. City of Palm Springs CWA 55575.18100\33346385.2 4 25 ARTICLE2 SCOPE OF THE AGREEMENT Section 2.1 General This Agreement shall apply to all of the City's Project Work, as defined in Section 1. 9, performed by those Contractor( s) of whatever tier that have contracts awarded for such work, for the development of the City's facilities which, jointly, constitute the Project, and have been designated by the City for construction or rehabilitation. Section 2.2 Specific Project Work covered by this Agreement is defined and limited to: 2.2.1 All construction and major rehabilitation work pursuant to "prime multi-trade construction contracts" that exceed one million dollars ($1,000,000) and all subcontracts flowing from these prime multi-trade contracts; and 2.2.2 All prime "Specialty Contracts," as defined in Section 1.10 that exceed one million dollars ($1,000,000) and all subcontracts flowing from these specialty contracts; and 2.2.3 The City may, at any time and at its sole discretion, determine to build additional buildings, facilities, and other projects under this Agreement which is not otherwise covered as Project Work. 2.2.4 This Agreement is not intended to, and shall not apply to any work performed at any time prior to the effective date, or after the expiration or termination of this Agreement, except as otherwise provided herein. This Agreement shall in no way limit the City's right to terminate, modify or rescind any construction contract and/ or any related subcontract or agreement. Should the City remove or terminate any contract or agreement for construction that does not fall within the scope of this Agreement and thereafter authorize that work be commenced on any contract for such construction, the contract for construction shall be performed under the terms of this Agreement. Section 2.3 Bundling of Contracts 2.3.1 The City, in its sole discretion, may seek to group (or "bundle") for bidding, contracts not meeting the threshold of Section 2.2 above. (Small contracts for like types of work, scheduled to be undertaken at the same facility or on the same project site, and within the same timeframe, will be considered for such bundling, consistent with economies of scale, and the purposes of this Agreement); and 2.3.2 Project Work will not be intentionally split, divided or otherwise separated for contract award purposes to avoid application of this Agreement. Section 2.4 Applicability This Agreement shall not apply to any work of any Contractor other than that on Project Work specifically covered by this Agreement. 5 City of Palm Springs CWA 55575.18100\33346385.2 26 Section 2.5 Exclusions Items specifically excluded from the scope of this Agreement includes the following: 2.5.1 Work of non-manual employees, including but not limited to: superintendents; teachers; supervisors ( except those covered by Master Labor Agreements above the level of general foreman); staff engineers; time keepers; mail carriers; clerks; office workers; messengers; guards; safety personnel; emergency medical and first aid technicians; and other professional, engineering, executive, administrative, supervisory and management employees; 2.5.2 Equipment and machinery owned or controlled and operated by the City; 2.5.3 All off-site manufacture and handling of materials, equipment or machinery; provided, however, that lay down or storage areas for equipment or material and manufacturing (prefabrication) sites, dedicated solely to the Project, and the movement of materials or goods between such locations and a Project site are within the scope of this Agreement; 2.5.4 All work performed by City employees, the CWA Administrator, design teams (including, but not limited to architects engineers and master planners), or any other consultants for the City (including, but not limited to, project managers and construction managers and their employees where not engaged in Project Work) and their sub-consultants, and other employees of professional service organizations, not performing manual labor within the scope of this Agreement; provided, however, that it is understood and agreed that Building/Construction Inspector and Field Soils and Materials Testers (Inspectors) are a covered craft under the Agreement. This inclusion applies to the scope of work defined in the State of California Wage Determination for said Craft. This shall also specifically include such work where it is referred to by utilization of such terms as "quality control" or "quality assurance." Every Inspector performing under the wage classification of Building/Construction Inspector and Field Soils and Material Testers under a professional services agreement or a construction contract shall be bound to all applicable requirements of the Community Workforce Agreement (CW A). Covered Work as defined by this Agreement shall be performed pursuant to the terms and conditions of this Agreement regardless of the manner in which the work was awarded; 2.5.5 Any work performed near, or leading to a site of work covered by this Agreement and undertaken by state, county or other governmental bodies, or their Contractors; or by public utilities, or their Contractors; and/or by adjacent third party landowners; and/or by the City or its Contractors (for work which is not within the scope of this Agreement); 2.5.6 Off-site maintenance ofleased equipment and on-site supervision of such work; 2.5.7 Work by employees of a manufacturer or vendor supervising the work of Craft employees under this Agreement, necessary to maintain such manufacturers or vendor's warranties or guaranty; 2.5.8 Non-construction support services contracted by the City, City consultants, the CW A Administrator, or Contractor in connection with a Project; 6 City of Palm Springs CWA 55575.18100\33346385.2 27 2.5.9 Laboratory work for testing. 2.5.10 Coverage Exception This Agreement shall not apply if the City receives funding or assistance from any Federal, State, local or other public entity for the Construction Contract if a requirement, condition or other term of receiving that funding or assistance, at the time of the awarding of the contract, is that the City not require bidders, contractors, or other persons or entities to enter into an agreement with one or more labor organizations. The City agrees that it will make reasonable efforts to establish the enforcement of this Agreement with any governmental agency or granting authority. 2.5.11 Local Contractor. This Agreement shall not awly to work performed by any local contractor. For purposes of this subsection 2.5.11, a contractor shall be deemed to be "local" if that contractor meets any one of the following criteria: (a) the contractor has a principal headquarters or permanently staffed regional office physically located within the City and has held a City of Palm Springs business license for at least six (6) months prior to the date of its bid. For purposes of this subparagraph (a), a post office box alone does not qualify as a physical presence. (b) the owner(s) who hold more than fifty percent (50%) ownership interest in the contracting company reside within Palm Springs; or (c) more than fifty percent (50%) of the employees of the contracting company reside within Palm Springs. 2.5 .12 Lack of Adequate Bids. In the event the City does not receive bona fide bids on otherwise Covered Work on or before the deadline for receiving such bids from at least three (3) responsible Contractors or the lowest responsive and responsible bid on a Covered Project is in excess of ten percent (10%) of the engineer's estimate, the City reserves the right to reject all bids and re-advertise the Project with or without the application of this Agreement. Section 2.6 Awarding of Contracts for Project Work 2.6.1 The City and/or the Contractors, as appropriate, have the absolute right to award contracts or subcontracts on Project Work to any Contractor notwithstanding the existence or non-existence of any agreements between such Contractor and any Union parties, provided only that such Contractor is ready, willing, and able to execute and comply with this Agreement should such Contractor be awarded work covered by this Agreement. 2.6.2 It is agreed that all Contractors of whatever tier, who have been awarded Project Work contracts, shall be required to accept and be bound to the terms and conditions of this Agreement, and shall evidence their acceptance by the execution of the Letter of Assent set forth in "Attachment A" hereto, prior to the commencement of any Project Work. At the time that any Contractor enters into a subcontract with any subcontractor of any tier providing for the performance of the construction contract, the Contractor shall provide a copy of this Agreement to said subcontractor and shall require the subcontractor, as a part of accepting the award of a construction subcontract, to agree in writing in the form of a Letter of Assent to be bound by 7 City of Palm Springs CWA 55575.18100\33346385.2 28 each and every provision of this Agreement prior to the commencement of work on the Project. No Contractor or subcontractor shall commence Project Work without having first provided a copy of the Letter of Assent as executed by it to the CW A Administrator and to the Trades Council before the commencement of Project Work. 2.6.3 Under all circumstances, the City shall retain the absolute right to select the lowest responsive and responsible bidder for the award of contracts on all projects. Section 2. 7 Master Labor Agreements 2. 7 .1 The provisions of this Agreement, including the Master Labor Agreements as such may be changed from time-to-time and which also are incorporated herein by reference, shall apply to Project Work. This Agreement is not intended to supersede such Master Labor Agreements between any of the Employers performing construction work on the Project and a Union signatory thereto except to the extent the provisions of this Agreement are inconsistent with such Master Labor Agreements, in which event the provisions of this Agreement shall apply. However, such does not apply to work performed under the National Cooling Tower Agreement, the National Stack Agreement, the National Transit Division Agreement (NTD), work within the jurisdiction of the International Union of Elevator Constructors, and all instrument calibration and loop checking work performed under the terms of the UA/IBEW Joint National Agreement for Instrument and Control Systems Technicians except that Article 9 dealing with Strikes, Work Stoppages and Lock-Outs, Work Assignments and Jurisdictional Disputes, and Settlement of Grievances and Disputes shall apply to such work. Where a subject is covered by the provisions of a Master Labor Agreement and not in conflict with the provisions of this Agreement, the provisions of the Master Labor Agreement shall apply. It is specifically agreed that no later agreement shall be deemed to have precedence over this Agreement unless signed by all parties signatory hereto who are then currently employed or represented at the Project. Any dispute as to the applicable source between this Agreement and any Master Labor Agreements for determining the wages, hours of working conditions of employees on this Project shall be resolved under the procedures established in Article 10. 2. 7.2 It is understood that this Agreement, together with the referenced Master Labor Agreements, constitutes a self-contained, stand-alone agreement and by virtue of having become bound to this Agreement, the Contractor will not be obligated to sign any other local, area or national collective bargaining agreement as a condition of performing work within the scope of this Agreement (provided, however, that the Contractor may be required to sign a uniformly applied, non-discriminatory Subscription Agreement at the request of the trustees or administrator of a trust fund established pursuant to Section 302 of the Labor Management Relations Act, and to which such Contractor is bound to make contributions under this Agreement, provided that such Subscription Agreement does not purport to bind the Contractor beyond the terms and conditions of this Agreement and/or expand its obligation to make contributions pursuant thereto). It shall be the responsibility of the prime Contractor to have each of its subcontractors sign the appropriate Subscription Agreement, with the appropriate Craft Union prior to the subcontractor beginning work on Project Work. City of Palm Springs CWA 55575.18100\33346385.2 8 29 Section 2.8 Binding Signatories Only This Agreement shall only be binding on the signatory Parties hereto, and shall not apply to the parents, affiliates, subsidiaries, or other ventures of any such Party not performing Project Work. Section 2.9 Other City Work Nothing contained herein shall be interpreted to prohibit, restrict, or interfere with the performance of any other operation, work or function not covered by this Agreement, which may be performed by City employees or contracted for by the City for its own account, on its property or in and around a Project site. Section 2 .10 Separate Liability It is understood that the liability of the Contractor( s) and the liability of the separate Unions under this Agreement shall be several and not joint. The Unions agree that this Agreement does not have the effect of creating any joint employment status between or among the City or CW A Administrator and/or any Contractor. Section 2.11 Completed Project Work As areas of Project Work are accepted by the City, this Agreement shall have no further force or effect on such items or areas except where the Contractor is directed by the City or its representatives to engage in repairs, modification, check- out and/or warranties functions required by its contract(s) with the City under the original contract. ARTICLE 3 UNION RECOGNITION AND EMPLOYMENT Section 3.1 Recognition The Contractor recognizes the Trades Council and the Unions as the sole and exclusive bargaining representative for the employees engaged in Project Work. Contractors further recognize that the Unions shall be the primary source of all craft labor employed on the Projects. In the event that a Contractor has its own core workforce, said Contractor shall follow the procedures outlined below. Section 3 .2 Contractor Selection of Employees The Contractor shall have the right to determine the competency of all employees, the number of employees required, the duties of such employees within their craft jurisdiction, and shall have the sole responsibility for selecting employees to be laid off, consistent with Section 3.3 and Section 4.3, below. The Contractor shall also have the right to reject any applicant referred by a Union for any reason, subject to any reporting pay required by Section 6.6; provided, however, that such right is exercised in good faith and not for the purpose of avoiding the Contractor's commitment to employ qualified workers through the procedures endorsed in this Agreement. Section 3.3 Referral Procedures 3.3.1 For signatory Unions now having a job referral system contained in a Master Labor Agreement, the Contractor agrees to comply with such system and it shall be used exclusively by such Contractor, except as modified by this Agreement. Such job referral system will be operated in a nondiscriminatory manner and in full compliance with federal, state, and local laws and regulations which require equal employment opportunities and non- 9 City of Palm Springs CWA 55575.18100\33346385 .2 30 discrimination. All of the foregoing hiring procedures, including related practices affecting apprenticeship, shall be operated so as to consider the goals of the City to encourage employment of City residents and utilization of small local businesses on the Project, and to facilitate the ability of all Contractors to meet their employment needs. 3.3.2 The local Unions will exert their best efforts to recruit and refer sufficient numbers of skilled craft workers to fulfill the labor requirements of the Contractor, including specific employment obligations to which the Contractor may be legally and/or contractually obligated; and to refer apprentices as requested to develop a larger, skilled workforce. The Unions will work with their affiliated regional and national unions, and jointly with the CW A Administrator and others designated by the City, to identify and refer competent craft persons as needed for Project Work, and to identify and hire individuals, particularly residents of the City, for entrance into joint labor/management apprenticeship programs, or to participate in other identified programs and procedures to assist individuals in qualifying and becoming eligible for such apprenticeship programs, all maintained to increase the available supply of skilled craft personnel for Project Work and future construction of maintenance work to be undertaken by the City. 3.3.3 The Union shall not knowingly refer an employee currently employed by a Contractor on a covered Project to any other Contractor. Section 3.4 Non-Discrimination in Referral, Employment, and Contracting The Unions and Contractors agree that they will not discriminate against any employee or applicant for employment in hiring and dispatching on the basis of race, color, religion, sex, gender, national origin, age, membership in a labor organization, sexual orientation, political affiliation, marital status, disability or other protected class under Title 7, Section 7.09.040 of the Municipal Code of the City of Palm Springs. Further, it is recognized that the City has certain policies, programs, and goals for the utilization of local small business enterprises. The Parties shall jointly endeavor to assure that these commitments are fully met, and that any provisions of this Agreement which may appear to interfere with local small business enterprises successfully bidding for work within the scope of this Agreement shall be carefully reviewed, and adjustments made as may be appropriate and agreed upon among the Parties, to ensure full compliance with the spirit and letter of the City's policies and commitment to its goals for the significant utilization of local small businesses as direct Contractors or suppliers for Project Work. Section 3 .5 Employment of City Residents 3.5.1 The Unions and Contractors agree that, to the extent allowed by law, and as long as they possess the requisite skills and qualifications, the Unions will exert their best efforts to refer and/or recruit sufficient numbers of skilled craft "Local Residents" as defined herein, as Vlell as VetefftftS, to fulfill the requirements of the Employers. In recognition of the fact that the City and the communities surrounding Project Work will be impacted by the construction of the Project Work, the parties agree to support the hiring of workers from the residents of these surrounding areas, as v,ell as Vetefftlls, for Project Work. Towards that end, the Unions shall exert their best efforts to encourage and provide referrals and utilization of qualified workers residing in those U. S. Postal Service zip codes which overlap all of the City of Palm Springs, as 10 City of Palm Springs CWA 55575.18100\33346385.2 31 set forth in "Attachment B" attached hereto , as v1ell as Vetefans, regaf<:Uess ef 1Nhere taey resiae. If the Unions cannot provide the Contractors in the attainment of a sufficient number of Veterans and Local Residents from within the first tier zip codes, the Unions shall exert their best efforts to then recruit and identify for referral Local Residents residing within Riverside County. 3.5.2 A goal of 30% of the total work hours shall be performed from workers residing within the areas described in Section 3 .5 .1 , as v.rell as Vetef8lls, Fegaf<:Uess ef vihefe tliey Feside . Per Article 3.6, referral of local residents shall be facilitated through the requirement to utilize the "Craft Employee Request Form" (Attachment C). Accountability and monitoring requirements shall be as set forth in Article 17.2. 3.5.3 The Unions agree to support the operation of pre-apprentice referral programs in the City. Further, the Unions agree to place on their referral roles or in their apprentice training programs, as appropriate and needed, qualified persons sent to them by designated City organizations or other organizations working with the City to increase construction industry work opportunities for City residents. 3.5.4 The Parties to this CBA support the development of increased numbers of skilled Construction Workers from among residents of the City of Palm Springs. Towards that end, the Parties agree to cooperatively seek to establish work opportunities for local residents and address Training and Employment needs in the Community. The goal is for the Career placement of disadvantaged and at-risk youth, Low Income and Under/unemployed residents, Women, Minorities, LGTBQ+ members of the community, and Veterans. The Unions commit to: (a) Coordinate and participate in City based Career and Apprenticeship Fairs and Events, including events such as VillageFest, the annual Pride festival, and the ONEPS Picnic; (b) Provide Industry Speakers for City Programs and Outreach Events; ( c) Support Local Events and Programs designed to recruit and develop adequate numbers of competent workers in the Construction Industry; ( d) Work cooperatively with the City and Community groups to provide pre- apprenticeship training utilizing Building Trades and Union Apprenticeship readiness Programs. (e) The Trades Council and Unions shall seek partnerships with the Riverside County Workforce Development Board, Palm Springs Unified School District, Desert Community College District, and non-profit community groups to provide construction career opportunity awareness and outreach throughout the City and greater Coachella Valley. These partnerships will include Apprenticeship Readiness Programs, Career awareness through Job Fairs, and Pre- Apprenticeship Training. Outreach shall include a focus on demographic groups that have been traditionally underrepresented in the Construction Industry, including, but not limited to, Women, Minorities, economically disadvantaged, LGBTO+, and formerly incarcerated individuals. Section 3.6 Requirements on Contractors to facilitate the dispatch of Local Residents ftft6 Vetenms , all Contractors will be required to utilize the Craft Employee Request Form whenever they are requesting the referral of any employee from a Union referral list for any Covered Project, a sample of which is attached as "Attachment C." When Local Residents anEl Vetef8:fls City of Palm Springs CWA 55575.18100\33346385.2 11 32 are requested by the Employers, the Unions will refer such workers regardless of their place in the Unions' hiring halls' list and normal referral procedures. Section 3. 7 Helmets to Hardhats 3.7.1 The Contractors and the Unions recognize a desire to facilitate the entry into the building and construction trades of Veterans who are interested in careers in the building and construction industry. The Contractors and Unions agree to utilize the services of non-profit Veterans support organizations, including but not limited to, the Center for Military Recruitment, Assessment and Veterans Employment (hereinafter "Center") and the Center's "Helmets to Hardhats" program to serve as a resource for preliminary orientation, assessment of construction aptitude, referral to apprenticeship programs or hiring halls, counseling and mentoring, support network, employment opportunities and other needs as identified by the Parties. For purposes of this Agreement the term "Eligible Veteran" shall have the same meaning as the term "veteran" as defined under Title 5, Section 2108(1) of the United States Code as the same may be amended or re-codified from time to time. It shall be the responsibility of each qualified applicant to provide the Unions with proof of his/her status as an Eligible Veteran. 3.7.2 The Unions and Contractors agree to coordinate with non-profit Veteran organizations, including, the Center to create and maintain an integrated database of veterans interested in working on this Project Work and of apprenticeship and employment opportunities for working on Project Work. To the extent permitted by law, the Unions will give credit to such Veterans for bona fide, provable past experience. Section 3 .8 Core Employees 3.8.1 Contractors not currently signatory to a Master Labor Agreement may employ, as needed, first, a member of his core workforce, then an employee through a referral from the appropriate Union hiring hall, then a second core employee, then a second employee through the referral system, and so on until a maximum of five (5) core employees are employed, thereafter, all additional employees in the affected trade or craft shall be requisitioned from the craft hiring hall in accordance with Section 3 .3. In the laying off of employees, the number of core employees shall not exceed one-half plus one of the workforce for an employer with 10 or fewer employees, assuming the remaining employees are qualified to undertake the work available. As part of this process, and in order to facilitate the contract administration procedures, as well as appropriate fringe benefit fund coverage, all Contractors shall require their core employees and any other persons employed other than through the referral process, to register with the appropriate Union hiring hall, if any, prior to their first day of employment at a project site. 3.8.2 The core work force is comprised of those employees whose names appeared on the Contractor's active payroll for sixty (60) of the one hundred (100) working days immediately before award of Project Work to the Contractor; who possess any license required by state or federal law for the Project Work to be performed; who have the ability to safely perform the basic functions of the applicable trade and who have been residing within Riverside County for the one hundred (100) working days immediately prior to the award of Project Work to the Contractor. 12 City of Palm Springs CWA 55575.18100\33346385.2 33 3.8.3 Prior to each Contractor performing any work on the Project, each Contractor shall provide a list of his core employees to the CW A Administrator and the Trades Council. Failure to do so will prohibit the Contractor from using any core employees. Upon request by any Party to this Agreement, the Contractor hiring any core employee shall provide satisfactory proof (i.e., payroll records, quarterly tax records, driver's license, voter registration, postal address and such governmental documentation) evidencing the core employee's qualification as a core employee to the CW A Administrator and the Trades Council. Section 3.9 Time for Referral If any Union's registration and referral system does not fulfill the requirements for specific classifications requested by any Contractor within forty-eight ( 48) hours ( excluding Saturdays, Sundays and holidays), that Contractor may use employment sources other than the Union registration and referral services, and may employ applicants meeting such classification from any other available source. The Contractors shall inform the Union of any applicants hired from other sources and such applicants shall register with the appropriate hiring hall, if any, before commencing work. Section 3.10 Lack of Referral Procedure If a signatory Union does not have a job referral system as set forth in Section 3.3 above, the Contractors shall give the Union equal opportunity to refer applicants. Contractors shall notify the Union of employees so hired, as set forth in Section 3.5. Section 3 .11 Employees are not required to become or remain union members as a condition of performing Covered Work under this Agreement. Employers shall make and transmit all deductions for union dues, fees, and assessments that have been authorized by employees in writing in accordance with the applicable Master Agreement. Nothing in this Section 3 .11 is intended to supersede the requirements of applicable Master Agreements as to those Employers otherwise signatory to such Master Agreements and as to the employees of those Employers who are performing Covered Work. Section 3.12 Individual Seniority Except as provided in Section 4.3, individual seniority shall not be recognized or applied to employees working on Project Work; provided, however, that group and/or classification seniority in a Union's Master Labor Agreement as of the effective date of this Agreement shall be recognized for purposes of layoffs. Section 3.13 Foremen The selection and number of craft foreman and/or general foreman shall be the responsibility of the Contractor. All foremen shall take orders exclusively from the designated Contractor representatives. Craft foreman shall be designated as working foreman at the request of the Contractors. Section 3 .14 Out of State Workers In determining compliance with the targeted hiring goals of Section 3 .5 above, hours of Project Work performed by residents of states other than California will be excluded from the calculation. City of Palm Springs CWA 55575.18100\33346385.2 ARTICLE4 13 34 UNION ACCESS AND STEW ARDS Section 4.1 Access to Project Sites Authorized representatives of the Union shall have access to Project Work, provided that they do not interfere with the work of employees and further provided that such representatives shall notify the person charged with on-site project supervision and fully comply with posted visitor, security and safety rules. Section 4.2 Stewards 4.2.1 Each signatory Union shall have the right to dispatch a working journeyperson as a steward for each shift, and shall notify the Contractor in writing of the identity of the designated steward or stewards prior to the assumption of such person's duties as steward. Such designated steward or stewards shall not exercise any supervisory functions. There will be no non-working stewards. Stewards will receive the regular rate of pay for their respective crafts. 4.2.2 In addition to his/her work as an employee, the steward should have the right to receive, but not to solicit, complaints or grievances and to discuss and assist in the adjustment of the same with the employee's appropriate supervisor. Each steward should be concerned only with the employees of the steward's Contractor and, if applicable, subcontractor(s), and not with the employees of any other Contractor. A Contractor will not discriminate against the steward in the proper performance of his/her Union duties. 4.2.3 When a Contractor has multiple, non-contiguous work locations at one site, the Contractor may request and the Union shall appoint such additional working stewards as the Contractor requests to provide independent coverage of one or more such locations. In such cases, a steward may not service more than one work location without the approval of the Contractor. 4.2.4 The stewards shall not have the right to determine when overtime shall be worked or who shall work overtime. Section 4.3 Steward Layoff/Discharge Contractor agrees to notify the appropriate Union twenty-four (24) hours before the layoff of a steward, except in the case of disciplinary discharge for just cause. If the steward is protected against such layoff by the provisions of the applicable Master Labor Agreement, such provisions shall be recognized when the steward possesses the necessary qualifications to perform the remaining work. In any case in which the steward is discharged or disciplined for just cause, the appropriate Union will be notified immediately by the Contractor, and such discharge or discipline shall not become final (subject to any later filed grievance) until twenty-four (24) hours after such notice has been given. Section 4.4 Employees on Non-Project Work On work where the personnel of the City may be working in close proximity to the construction activities covered by this Agreement, the Union agrees that the Union representatives, stewards, and individual workers will not interfere with the City personnel, or with personnel employed by the any other employer not a Party to this Agreement. City of Palm Springs CWA 55575.18100\33346385.2 14 35 ARTICLES WAGES AND BENEFITS Section 5 .1 Wages All employees covered by this Agreement shall be classified in accordance with work performed and paid by the Contractors the hourly wage rates for those classifications in compliance with the applicable prevailing wage rate determination established pursuant to applicable law. If a prevailing rate increases under law, the Contractor shall pay that rate as of its effective date under the law. This Agreement does not relieve Contractors directly signatory to a Master Labor Agreement with one of the Unions signing this Agreement from paying all of the wages set forth in such Agreements. Section 5 .2 Benefits 5.2.1 Contractors shall, except as provided for in Section 5.2.4, pay contributions to the established employee benefit funds in the amounts designated in the appropriate Master Labor Agreement and make all employee-authorized deductions in the amounts designated in the appropriate Master Labor Agreement; however, such contributions shall not exceed the contribution amounts set forth in the applicable prevailing wage determination. This Agreement does not relieve Contractors directly signatory to one or more of the Master Labor Agreements from making all contributions set forth in those Master Labor Agreements without reference to the foregoing. 5.2.2 The Contractor adopts and agrees to be bound by the written terms of the applicable, legally established, trust agreement( s) specifying the detailed basis on which payments are to be made into, and benefits paid out of, such trust funds for its employees. The Contractor authorizes the Parties to such trust funds to appoint trustees and successor trustees to administer the trust funds and hereby ratifies and accepts the trustees so appointed as if made by the Contractor. 5 .2.3 Each Contractor and subcontractor is required to certify to the CW A Administrator that it has paid all benefit contributions due and owing to the appropriate Trust( s) prior to the receipt of its final payment and/or retention. Further, upon timely notification by a Union to the CW A Administrator, the CW A Administrator shall work with any prime Contractor or subcontractor who is delinquent in payments to assure that proper benefit contributions are made, to the extent of requesting the City or the prime Contractor to withhold payments otherwise due such Contractor, until such contributions have been made or otherwise guaranteed. 5 .2.4 Any non-signatory Contractor/Employer employing a core worker shall, in lieu of the contributions provided for in section 5.2.1 above, compensate the core worker for benefits in excess of the basic hourly wage rate in accordance with the applicable prevailing wage determination established by the Department of Industrial Relations pursuant to the California Labor Code. Contractor/Employer may: (1) directly compensate the core worker, or (2) City of Palm Springs CWA 55575.18100\33346385.2 15 36 contribute to Contractor/Employer's benefit plans on behalf of the core worker, or (3) contribute to the Union's established employee benefit plans on behalf of the core worker. Section 5.3 Wage Premiums Wage premiums, including but not limited to pay based on height of work, hazard pay, scaffold pay and special skills shall not be applicable to work under this Agreement, except to the extent provided for in any applicable prevailing wage determination. ARTICLE6 HOURS OF WORK, OVERTIME, SHIFTS AND HOLIDAYS Section 6.1 Hours of Work Eight (8) hours per day between the hours of 6:00 a.m. and 5 :30 p.m., plus one-half (½) hour unpaid lunch approximately mid-way through the shift, shall constitute the standard work day. Forty (40) hours per week shall constitute a regular week's work. The work week will start on Sunday and conclude on Saturday. The foregoing provisions of this Article are applicable unless otherwise provided in the applicable prevailing wage determination, or unless changes are permitted by law and such are agreed upon by the Parties. Nothing herein shall be construed as guaranteeing any employee eight (8) hours per day or forty ( 40) hours per week, or a Monday through Friday standard work schedule. Section 6.2 Place of Work Employees shall be at their place of work (as designated by the Contractor), at the starting time and shall remain at their place of work, performing their assigned functions, until quitting time. The place of work is defined as the gang or tool box or equipment at the employee's assigned work location or the place where the foreman gives instructions. The Parties reaffirm their policy of a fair day's work for a fair day's wage. Except as provided in Section 6.6, there shall be no pay for time not worked unless the employee is otherwise engaged at the direction of the Contractor. Section 6.3 Overtime Overtime shall be paid in accordance with the requirements of the applicable prevailing wage determination. There shall be no restriction on the Contractor's scheduling of overtime or the nondiscriminatory designation of employees who will work overtime. There shall be no pyramiding of overtime (payment of more than one form of overtime compensation for the same hour) under any circumstances. Section 6.4 Shifts and Alternate Work Schedules 6.4.1 Alternate starting and quitting time and/or shift work may be performed at the option of the Contractor upon three (3) days' prior notice to the affected Union(s), unless a shorter notice period is provided for in the applicable Master Labor Agreement If two shifts are worked, each shall consist of eight (8) hours of continuous work exclusive of a one-half(½) hour non-paid lunch period, for eight (8) hours pay. The last shift shall start on or before 6:00 p.m. The first shift starting at or after 6:00 a.m. is designated as the first shift, with the second shift following. City of Palm Springs CWA 55575.18100\33346385.2 16 37 6.4.2 Contractors, the Trades Council and the Union recognize the economic impact upon the City and City residents of the Project being undertaken by the City and agree that all Parties to this Agreement desire and intend Project Work to be undertaken in a cost efficient and effective manner to the highest standard of quality and craftsmanship. Recognizing the economic conditions, the Parties agree that, except to the extent permitted by law, employees performing Project Work shall not be entitled to any differentials or additional pay based upon the shift or work schedule of the employees. Instead, all employees working on Project Work shall be paid at the same base rate regardless of shift or work schedule worked. 6.4.3 Because of operational necessities, the second shift may, at the City's direction, be scheduled without the preceding shift having been worked. It is recognized that the City's operations and/or mitigation obligations may require restructuring of normal work schedules. Except in an emergency or when specified in the City's bid specification, the Contractor shall give affected Union(s) at least three (3) days' notice of such schedule changes. Section 6.5 Holidays Recognized holidays for Project Work shall be those set forth and governed by the prevailing wage determination(s) applicable to such Project Work. Section 6.6 Show-up Pay 6.6.1 Except as otherwise required by State law, Employees reporting for work and for whom no work is provided, except when given prior notification not to report to work, shall receive two (2) hours pay at the regular straight time hourly rate. Employees who are directed to start work shall receive four ( 4) hours of pay at the regular straight time hourly rate. Employees who work beyond four ( 4) hours shall be paid for actual hours worked. Whenever reporting pay is provided for employees, they will be required to remain at the Project Site and available for work for such time as they receive pay, unless released earlier by the principal supervisor of the Contractor( s) or his/her designated representative. Each employee shall furnish his/her Contractor with his/her current address and telephone number, and shall promptly report any changes to the Contractor. 6.6.2 An employee called out to work outside of his/her shift shall receive a minimum of two (2) hours pay at the appropriate rate. This does not apply to time worked as an extension of (before or after) the employee's normal shift. 6.6.3 When an employee leaves the job or work location of his/her own volition, or is discharged for cause or is not working as a result of the Contractor's invocation of Section 12.3, the employee shall only be paid for actual time worked. Section 6. 7 Meal Periods The Contractor will schedule a meal period of no more than one- half hour duration at the work location at approximately mid-point of the schedule shift; provided, however, that the Contractor may, for efficiency of the operation, establish a schedule which coordinates the meal periods of two or more crafts. An employee may be required to work through his meal period because of an emergency or a threat to life or property, or for such other reasons as are in the applicable Master Labor Agreement, and if he is so required, he shall be compensated in the manner established in the applicable Master Labor Agreement. 17 City of Palm Springs CWA 55575.18100\33346385 .2 38 Section 6.8 Make-up Days To the extent permitted by the applicable Master Labor Agreement (MLA) determination, when an employee has been prevented from working for reasons beyond the control of the employer, including, but not limited to inclement weather or other natural causes, during the regularly scheduled work week, a make-up day may be worked on a non-regularly scheduled work day for which an employee shall receive eight (8) hours pay at the straight time rate of pay or any premium rate required for such hours under the state prevailing wage law. ARTICLE 7 WORK STOPPAGES AND LOCK-OUTS Section 7 .1 No Work Stoppages or Disruptive Activity The Trades Council and the Unions signatory hereto agree that neither they, and each of them, nor their respective officers or agents or representatives, shall incite or encourage, condone or participate in any strike, walk-out, slow- down, picketing, observing picket lines or other activity of any nature or kind whatsoever, for any cause or dispute whatsoever with respect to or in any way related to Project Work, or which interferes with or otherwise disrupts, Project Work, or with respect to or related to the City or Contractors, including, but not limited to, economic strikes, unfair labor practice strikes, safety strikes, sympathy strikes and jurisdictional strikes whether or not the underlying dispute is arbitrable. Any such actions by the Trades Council, or Unions, or their members, agents, representatives or the employees they represent shall constitute a violation of this Agreement. The Trades Council and the Union shall take all steps necessary to obtain compliance with this Article and neither should be held liable for conduct for which it is not responsible. Section 7 .2 Employee Violations The Contractor may discharge any employee violating Section 7 .1 above and any such employee will not be eligible for rehire under this Agreement. Section 7.3 Standing to Enforce The City, the CWA Administrator, or any Contractor affected by an alleged violation of Section 7 .1 shall have standing and the right to enforce the obligations established therein. Section 7.4 Expiration of Master Labor Agreement If the Master Labor Agreement, or any local, regional, and other applicable collective bargaining agreements expire during the term of the Project, the Union(s) agree that there shall be no work disruption of any kind as described in Section 7.1 above as a result of the expiration of any such agreement(s) having application on this Project and/or failure of the involved Parties to that agreement to reach a new contract. Terms and conditions of employment established and set at the time of bid shall remain established and set. Otherwise to the extent that such agreement does expire and the Parties to that agreement have failed to reach concurrence on a new contract, work will continue on the Project on one of the following two (2) options, both of which will be offered by the Unions involved to the Contractors affected: 7.4.1 Each of the Unions with a contract expiring must offer to continue working on the Project under interim agreements that retain all the terms of the expiring contract, except that the Unions involved in such expiring contract may each propose wage rates and employer 18 City of Palm Springs CWA 55575.18100\33346385.2 39 contribution rates to employee benefit funds under the prior contract different from what those wage rates and employer contributions rates were under the expiring contracts. The terms of the Union's interim agreement offered to Contractors will be no less favorable than the terms offered by the Union to any other employer or group of employers covering the same type of construction work in Riverside County. 7.4.2 Each of the Unions with a contract expiring must offer to continue working on the Project under all the terms of the expiring contract, including the wage rates and employer contribution rates to the employee benefit funds, if the Contractor affected by that expiring contract agrees to the following retroactive provisions: if a new Master Labor Agreement, local, regional or other applicable labor agreement for the industry having application at the Project is ratified and signed during the term of this Agreement and if such new labor agreement provides for retroactive wage increases, then each affected Contractor shall pay to its employees who performed work covered by this Agreement at the Project during the hiatus between the effective dates of such expired and new labor agreements, an amount equal to any such retroactive wage increase established by such new labor agreement, retroactive to whatever date is provided by the new labor agreement for such increase to go into effect, for each employee's hours worked on the Project during the retroactive period. All Parties agree that such affected Contractors shall be solely responsible for any retroactive payment to its employees. 7.4.3 Some Contractors may elect to continue to work on the Project under the terms of the interim agreement option offered under paragraph 7.4.1 and other Contractors may elect to continue to work on the Project under the retroactivity option offered under paragraph 7.4.2. To decide between the two options, Contractors will be given one week after the particular labor agreement has expired or one week after the Union has personally delivered to the Contractors in writing its specific offer of terms of the interim agreement pursuant to paragraph 7.4.1, whichever is the later date. If the Contractor fails to timely select one of the two options, the Contractor shall be deemed to have selected the provisions of 7.4.2. Section 7.5 No Lockouts Contractors shall not cause, incite, encourage, condone or participate in any lock-out of employees with respect to Project Work during the term of this Agreement. The term "lock-out" refers only to a Contractor's exclusion of employees in order to secure collective bargaining advantage, and does not refer to the discharge, termination or layoff of employees by the Contractor for any reason in the exercise of rights pursuant to any provision of this Agreement, or any other agreement, nor does "lock-out" include the City's decision to stop, suspend or discontinue any Project Work or any portion thereof for any reason. Section 7 .6 Best Efforts to End Violations 7.6.1 If a Contractor contends that there is any violation of this Article or Section 8.3, it shall notify, in writing, the Executive Secretary of the Trades Council, the Senior Executive of the involved Union(s) and the CWA Administrator. The Executive Secretary and the leadership of the involved Union(s) will immediately instruct, order and use their best efforts to cause the cessation of any violation of the relevant Article. City of Palm Springs CWA 55575.18100\33346385.2 19 40 7.6.2 If the Union contends that any Contractor has violated this Article, it will notify that the Contractor and the CW A Administrator, setting forth the facts which the Union contends violate the Agreement, at least twenty-four (24) hours prior to invoking the procedures of Section 7.8. The CWA Administrator shall promptly order the involved Contractor(s) to cease any violation of the Article. Section 7. 7 Withholding of services for failure to pay wages and fringe benefits 7.7.1 Notwithstanding any provision of this Agreement to the contrary, it shall not be a violation of this Agreement for any Union to withhold the services of its members (but not the right to picket) from a particular Contractor who: (a) Fails to timely pay its weekly payroll; or (b) Fails to make timely payments to the Union's Joint Labor/Management Trust Funds in accordance with the provisions of the applicable Master Labor Agreements. Prior to withholding its members' services for the Contractor's failure to make timely payments to the Union's Joint Labor/Management Trust Funds, the Union shall give at least ten (10) days (unless a lesser period of time is provided in the Union's Master Labor Agreement, but in no event less than forty-eight ( 48) hours) written notice of such failure to pay by registered or certified mail, return receipt requested, and by facsimile transmission to the involved Contractor and to the City. Union will meet within the ten (10) day period to attempt to resolve the dispute. 7.7.2 Upon the payment of the delinquent Contractor of all monies due and then owing for wages and/or fringe benefit contributions, the Union shall direct its members to return to work and the Contractor shall return all such members back to work. Section 7.8 Expedited Enforcement Procedure Any party, including the City, which the Parties agree is a Party to the Agreement for purposes of this Article and an intended beneficiary of this Article, or the CW A Administrator, may institute the following procedures, in lieu of or in addition to any other action at law or equity, when a breach of Section 7.1 or 7.5, above, or Section 8.3 is alleged. 7 .8.1 The Party invoking this procedure shall notify Fred Horowitz, or Louis Zigman, [Subject to Confirmation] who have been selected by the negotiating Parties, and whom the Parties agree shall be the permanent arbitrators under this procedure. If the permanent arbitrators are unavailable at any time, any one of the permanent Arbitrators who is notified shall appoint his alternate to hear the matter. Expenses incurred in arbitration shall be borne equally by the Parties involved in the arbitration and the decision of the arbitrator shall be final and binding on the Parties, provided, however, that the arbitrator shall not have the authority to alter or amend or add to or delete from the provisions of this Agreement in any way. Notice to the arbitrator shall be by the most expeditious means available, with notices to the Parties alleged to be in violation, and to the Trades Council if it is a Union alleged to be in violation. For purposes of this Article, 20 City of Palm Springs CWA 55575.18100\33346385.2 41 written notice may be given by telegram, facsimile, hand delivery or overnight mail and will be deemed effective upon receipt. 7.8.2 Upon receipt of said notice, the arbitrator named above or his/her alternate shall sit and hold a hearing within twenty-four (24) hours if it is contended that the violation still exists, but not sooner than twenty-four (24) hours after notice has been dispatched to the Executive Secretary and the Senior Official(s) as required by Section 7.6, as above. 7.8.3 The arbitrator shall notify the Parties of the place and time chosen for this hearing. Said hearing shall be completed in one session, which, with appropriate recesses at the arbitrator's discretion, shall not exceed 24 hours unless otherwise agreed upon by all Parties. A failure of any Party or Parties to attend said hearings shall not delay the hearing of evidence or the issuance of any award by the arbitrator. 7 .8.4 The sole issue at the hearing shall be whether or not a violation of Sections 7 .1 or 7.5, above, or Section 8.3 has in fact occurred. The arbitrator shall have no authority to consider any matter in justification, explanation or mitigation of such violation. The award shall be issued in writing within three (3) hours after the close of the hearing, and may be issued without an opinion. If any Party desires a written opinion, one shall be issued within fifteen ( 15) days, but its issuance shall not delay compliance with, or enforcement of, the Award. The arbitrator may order cessation of the violation of the Article and other appropriate relief, and such award shall be served on all Parties by hand or registered mail upon issuance. 7 .8.5 Such award shall be final and binding on all Parties and may be enforced by any court of competent jurisdiction upon the filing of this Agreement and all other relevant documents referred to herein above in the following manner. Written notice of the filing of such enforcement proceedings shall be given to the other Party. In any judicial proceeding to obtain a temporary order enforcing the arbitrator's award as issued under this Article, all Parties waive the right to a hearing and agree that such proceedings may be ex parte. Such agreement does not waive any Party's right to participate in a hearing for a final order of enforcement. The court's order or orders enforcing the arbitrator's award shall be served on all Parties by hand or by delivery to their address as shown on this Agreement (for a Union), as shown on their business contract for work under this Agreement ( for a Contractor) and to the representing Union ( for an employee), by certified mail by the Party or Parties first alleging the violation. 7.8.6 Any rights created by statute or law governing arbitration proceedings inconsistent with the above procedure or which interfere with compliance hereto are hereby waived by the Parties to whom they accrue. 7.8.7 The fees and expenses of the arbitrator shall be equally divided between the Party or Parties initiating this procedure and the respondent Party or Parties. ARTICLE 8 WORK ASSIGNMENTS AND JURISDICTIONAL DISPUTES City of Palm Springs CWA 55575.18100\33346385.2 21 42 Section 8.1 Assignment of Work The assignment of Project Work will be solely the responsibility of the Employer performing the work involved; and such work assignments will be in accordance with the Plan for the Settlement of Jurisdictional Disputes in the Construction Industry (the "Plan") or any successor Plan. Section 8.2 The Plan 8.2.1 All jurisdictional disputes on Project Work between or among the building and construction trades Unions and the Employers parties to this Agreement, shall be settled and adjusted according to the present Plan established by the Building and Construction Trades Department or any other plan or method of procedure that may be adopted in the future by the Building and Construction Trades Department. Decisions rendered shall be final, binding and conclusive on the Employers and Unions parties to this Agreement. 8.2.2 If a dispute arising under this Article involves the Southwest Regional Council of Carpenters or any of its subordinate bodies, an Arbitrator shall be chosen by the procedures specified in Article V, Section 5, of the Plan from a list composed of John Kagel, Thomas Angelo, Robert Hirsch, and Thomas Pagan, [Subject to Confirmation] and the Arbitrator's hearing on the dispute shall be held at the offices of the Trades Council within 14 days of the selection of the Arbitrator. All other procedures shall be as specified in the Plan. Section 8.3 No Work Disruption Over Jurisdiction All jurisdictional disputes shall be resolved without the occurrence of any strike, work stoppage, or slow-down of any nature, and the Employer's assignment shall be adhered to until the dispute is resolved. Individuals violating this section shall be subject to immediate discharge. Section 8.4 Pre-Job Conferences As provided in Article 16, each Contractor will conduct a pre-job conference with the appropriate affected Union(s) prior to commencing work. The Trades Council and the CW A Administrator shall be advised in advance of all such conferences and may participate if they wish. Section 8.5 Resolution of Jurisdictional Disputes If any actual or threatened strike, sympathy strike, work stoppage, slow down, picketing, hand-billing or otherwise advising the public that a labor dispute exists, or interference with the progress of Project Work by reason of a jurisdictional dispute or disputes occurs, the Parties shall exhaust the expedited procedures set forth in the Plan, if such procedures are in the plan then currently in effect, or otherwise as in Article 7 above. ARTICLE9 MANAGEMENT RIGHTS Section 9 .1 Contractor and City Rights The Contractors and the City have the sole and exclusive right and authority to oversee and manage construction operations on Project Work without any limitations unless expressly limited or required by a specific provision of this Agreement or an MLA. In addition to the following and other rights of the Contractors enumerated in this Agreement, the Contractors expressly reserve their management rights and all 22 City of Palm Springs CWA 55575.18100\33346385.2 43 the rights conferred upon them by law. The Contractor's rights include, but are not limited to, the right to: (a) Plan, direct and control operations of all work in the manner required by, and in compliance with, the contract document, including but not limited to, plans, specifications, and scope of work under contract; (b) Hire, promote, transfer and layoff their own employees, respectively, as deemed appropriate to satisfy work and/ or skill requirements; ( c) Promulgate and require all employees to observe reasonable job rules and security and safety regulations; ( d) Discharge, suspend or discipline their own employees for just cause; ( e) Utilize, in accordance with City approval, any work methods, procedures or techniques, and select, use and install any types or kinds of materials, apparatus or equipment, regardless of source of manufacture or construction; assign and schedule work at their discretion; and (f) Assign overtime, determine when it will be worked and the number and identity of employees engaged in such work, subject to such provisions in the applicable Master Labor Agreement ( s) requiring such assignments be equalized or otherwise made in a nondiscriminatory manner. Section 9 .2 Specific City Rights In addition to the following and other rights of the City enumerated in this Agreement, the City expressly reserves its management rights and all the rights conferred on it by law. The City's rights (and those of the Contract Administrator on its behalf) include but are not limited to the right to: (a) Inspect any construction site or facility to ensure that the Contractor follows the applicable safety and other work requirements, and to insure compliance with contract documents, including but not limited to, plans, specifications, and scope of work under contract; (b) Require Contractors to establish a different work week or shift schedule for particular employees as required to meet the operational needs of the Project Work at a particular location; (c) At its sole option, terminate, delay and/or suspend any and all portions of the covered work at any time; prohibit some or all work on certain days or during certain hours of the day to accommodate the ongoing operations of the City's Facilities and/or to mitigate the effect of ongoing Project Work on businesses and residents in the neighborhood of the Project site; and/or require such other operational or schedule changes it deems necessary, in its sole judgment, to effectively maintain its primary mission and remain a good neighbor to those in the area of its facilities. (In order to permit the Contractors and Unions to make 23 City of Palm Springs CWA 55575.18100\33346385 .2 44 appropriate scheduling plans, the City will provide the CWA Administrator, and the affected Contractor(s) and Union(s) with reasonable notice of any changes it requires pursuant to this section; provided, however, that if notice is not provided in time to advise employees not to report for work, show-up pay shall be due pursuant to the provision of Article 6, Section 6.6); ( d) Approve any work methods, procedures and techniques used by Contractors whether or not these methods, procedures or techniques are part of industry practices or customs; and (e) Investigate and process complaints, through the CWA Administrator, in the matter set forth in Articles 7 and 10. Section 9.3 Use of Materials There should be no limitations or restriction by Union upon a Contractor's choice of materials or design, nor, regardless of source or location, upon the full use and utilization, of equipment, machinery, packaging, precast, prefabricated, prefinished, or preassembled materials, tools or other labor saving devices, subject to the application of the State Public Contracts and Labor Codes as required by law. The onsite installation or application of such items shall be performed by the craft having jurisdiction over such work. Section 9 .4 Special Equipment, Warranties and Guaranties 9.4.1 It is recognized that certain equipment of a highly technical and specialized nature may be installed at Project Work sites. The nature of the equipment, together with the requirements for manufacturer's warranties, may dictate that it be prefabricated pre-piped and/or pre-wired and that it be installed under the supervision and direction of the City's and/or manufacturer's personnel. The Unions agree to install such equipment without incident to insure compliance with the specifications for the equipment being installed and to insure compliance with contract documents, including but not limited to, plans, specifications, and scope of work under contract. 9.4.2 The Parties recognize that the Contractor will initiate from time to time the use of new technology, equipment, machinery, tools, and other labor-savings devices and methods of performing Project Work. The Union agrees that they will not restrict the implementation of such devices or work methods. The Unions will accept and will not refuse to handle, install or work with any standardized and/or catalogue: parts, assemblies, accessories, prefabricated items, preassembled items, partially assembled items, or materials whatever their source of manufacture or construction. 9.4.3 If any disagreement between the Contractor and the Unions concerning the methods of implementation or installation of any equipment, or device or item, or method of work, arises, or whether a particular part or pre-assembled item is a standardized or catalog part or item, the work will precede as directed by the Contractor and the Parties shall immediately consult over the matter. If the disagreement is not resolved, the affected Union(s) shall have the right to proceed through the procedures set forth in Article 10. City of Palm Springs CWA 55575.18100\33346385 .2 24 45 Section 9 .5 No Less Favorable Treatment The parties agree that Project Work will not receive less favorable treatment than that on any other project which the Unions, Contractors and employees work. ARTICLE 10 SETTLEMENT OF GRIEVANCES AND DISPUTES Section 10.1 Cooperation and Harmony on Site 10.1.1 This Agreement is intended to establish and foster continued close cooperation between management and labor. The Trades Council shall assign a representative to this Project for the purpose of assisting the local Unions, and working with the CWA Administrator, together with the Contractors, to complete the construction of the Project economically, efficiently, continuously and without any interruption, delays or work stoppages. 10.1.2 The CW A Administrator, the Contractors, Unions, and employees collectively and individually, realize the importance to all Parties of maintaining continuous and uninterrupted performance of the Project Work, and agree to resolve disputes in accordance with the grievance provisions set forth in this Article or, as appropriate, those of Article 7 or 8. 10.1.3 The CW A Administrator shall oversee the processing of grievances under this Article and Articles 7 and 8, including the scheduling and arrangements of facilities for meetings, selection of the arbitrator from the agreed-upon panel to hear the case, and any other administrative matters necessary to facilitate the timely resolution of any dispute; provided, however, it is the responsibility of the principal parties to any pending grievance to insure the time limits and deadlines are met. Section 10.2 Processing Grievances Any questions arising out of and during the term of this Agreement involving its interpretation and application, which includes applicable provisions of the Master Labor Agreement, but not jurisdictional disputes or alleged violations of Section 7 .1 and 7.4 and similar provisions, shall be considered a grievance and subject to resolution under the following procedures. Step 1. City of Palm Springs CWA 55575.18100\33346385 .2 Employee Grievances When any employee subject to the provisions of this Agreement feels aggrieved by an alleged violation of this Agreement, the employee shall, through his local Union business representative or, job steward, within ten (10) working days after the occurrence of the violation, give notice to the work site representative of the involved Contractor stating the provision(s) alleged to have been violated. A business representative of the local Union or the job steward and the work site representative of the involved Contractor shall meet and endeavor to resolve the matter within ten (10) working days after timely notice has been given. If they fail to resolve the matter within the prescribed period, the grieving party may, within ten (10) working days thereafter, pursue Step 2 of this grievance procedure provided the grievance is reduced to writing, setting forth the relevant information, including a short 25 46 description thereof, the date on which the alleged violation occurred, and the provision(s) of the Agreement alleged to have been violated. Grievances and disputes settled at Step 1 shall be non-precedential except as to the parties directly involved. Union or Contractor Grievances Should the Union(s) or any Contractor have a dispute with the other Party(ies) and, if after conferring within ten (10) working days after the disputing Party knew or should have known of the facts or occurrence giving rise to the dispute, a settlement is not reached within five (5) working days, the dispute shall be reduced to writing and processed to Step 2 in the same manner as outlined in Step 1 above for the adjustment of an employee complaint. Step 2. Step 3. City of Palm Springs CWA 55575.18100\33346385 .2 The business manager of the involved Union or his designee, together with the site representative of the involved Contractor, and the labor relations representative of the CWA Administrator, shall meet within seven (7) working days of the referral of the dispute to this second step to arrive at a satisfactory settlement thereof. If the Parties fail to reach an agreement, the dispute may be appealed in writing in accordance with the provisions of Step 3 within seven (7) calendar days after the initial meeting at Step 2. (a) If the grievance shall have been submitted but not resolved under Step 2, either the Union of Contractor Party may request in writing to the CWA Administrator (with copy(ies) to the other Party(ies) within seven (7) calendar days after the initial Step 2 meeting, that the grievance be submitted to an arbitrator selected from the agreed upon list in "Attachment (D)" attached hereto, on a rotational basis in the order listed. The CW A Administrator shall notify the parties to the grievance of the date, time and location of the hearing. The failure of any party to attend said hearing shall not delay the hearing of evidence or the issuance of any decision by the arbitrator. The decision of the arbitrator shall be final and binding on all parties. Should any party seek confirmation of the award made by the arbitrator, the prevailing party shall be entitled to receive its reasonable attorney fees and costs. (b) Failure of the grieving Party to adhere to the time limits established herein shall render the grievance null and void. The time limits established herein may be extended only by consent of the Parties involved at the particular step where the extension is agreed upon. The arbitrator shall have the authority to make decisions only on issues presented and shall not have the authority to change, amend, add to or detract from any of the provisions of this Agreement. ( c) The fees and expenses incurred by the arbitrator, as well as those jointly utilized by the Parties (i.e. conference room, court reporter, 26 47 etc.) in arbitration, shall be divided equally by the Parties to the arbitration, including Union(s) and Contractor(s) involved. Section 10.3 Limit on Use of Procedures The procedures contained in this Article shall not be applicable to any alleged violation of Articles 7 or 8, with a single exception that any employee discharged for violation of Section 7.2, or Section 8.3, may resort to the procedures of this Article to determine only if he/she was, in fact, engaged in that violation. Section 10.4 Notice The CWA Administrator (and the City, in the case of any grievance regarding the Scope of this Agreement), shall be notified by the involved Contractor of all actions at Steps 2 and 3, and further, the CWA Administrator shall, upon its own request, be permitted to participate fully as a party in all proceedings at such steps. ARTICLE 11 REGULATORY COMPLIANCE Section 11.1 Compliance with All Laws The Trades Council and all Unions, Contractors, and their employees shall comply with all applicable federal and state laws, ordinances and regulations including, but not limited to, those relating to safety and health, employment and applications for employment. All employees shall comply with the safety regulations established by the City, the CWA Administrator or the Contractor. Employees must promptly report any injuries or accidents to a supervisor. Section 11.2 Prevailing Wage Compliance All Contractors shall comply with the state laws and regulations. Compliance with this obligation may be enforced by the appropriate parties through Article 10 above, or by pursing the remedies available under state law through the Labor Commissioner or the Department of Industrial Relations. Section 11.3 Violations of Law Should there be a finding by the City or a Court or administrative tribunal of competent jurisdiction that a Contractor has violated federal and/or state law or regulation, the City, upon notice to the Contractor that it or its subcontractors is in such violation (including any finding of non-compliance with the California prevailing wage obligations as enforced pursuant to DIR regulations), and in the absence of the Contractor or subcontractor remedying such violation, may take such action as it is permitted by law or contract to encourage that Contractor to come into compliance, including, but not limited to, assessing fines and penalties and/or removing the offending Contractor from Project Work. Additionally, in accordance with the Agreement between the City and the Contractor, the City may cause the Contractor to remove from Project work any subcontractor who is in violation of state or federal law. ARTICLE 12 SAFETY AND PROTECTION OF PERSON AND PROPERTY City of Palm Springs CWA 55575.18100\33346385.2 27 48 Section 12.1 Safety 12.1.1 It shall be the responsibility of each Contractor to ensure safe working conditions and employee compliance with any safety rules contained herein or established by the City or the Contractor, whichever is most restrictive shall apply. It is understood that employees have an individual obligation to use diligent care to perform their work in a safe manner and to protect themselves and the property of the Contractor and the City. 12.1.2 Employees shall be bound by the safety, security and visitor rules established by the Contractor and/or the City. These rules will be published and posted. An employee's failure to satisfy his/her obligations under this section will subject him/her to discipline, up to and including discharge. 12.1.3 The Parties shall adopt the Substance Abuse Policy attached hereto as Attachment "E," which shall be the policy and procedure utilized under this Agreement. Section 12.2 Suspension of Work for Safety A Contractor may suspend all or a portion of the job to protect the life and safety of employees. In such cases, employees will be compensated only for the actual time worked; provided, however, that where the Contractor requests employees to remain at the site and be available for work, the employees will be compensated for stand-by time at their basic hourly rate of pay. Section 12.3 Water and Sanitary Facilities The Contractor shall provide adequate supplies of drinking water and sanitary facilities for all employees as required by state law or regulation. ARTICLE 13 TRAVEL AND SUBSISTENCE Travel expenses, travel time, subsistence allowances, zone rates and parking reimbursements shall be paid in accordance with the applicable Master Labor Agreement unless superseded by the applicable prevailing wage determination. ARTICLE 14 APPRENTICES Section 14.1 Importance of Training The Parties recognize the need to maintain continuing support of the programs designed to develop adequate numbers of competent workers in the construction industry, the obligation to capitalize on the availability of the local work force in the area served by the City, and the opportunities to provide continuing work under the construction program. To these ends, the Parties will facilitate, encourage, and assist local residents to commence and progress in Labor/Management Apprenticeship and/or training Programs in the construction industry leading to participation in such apprenticeship programs. The City and the Trades Council, will work cooperatively to identify, or establish and maintain, effective programs and procedures for persons interested in entering the construction industry City of Palm Springs CWA 55575.18100\33346385.2 28 49 and which will help prepare them for the formal joint labor/management apprenticeship programs maintained by the signatory Unions. Section 14.2 Use of Apprentices 14.2.1 Apprentices used on Projects under this Agreement shall be registered in Joint Labor Management Apprenticeship Programs approved by the State of California. Apprentices may comprise up to thirty percent (30%) of each craft's work force (calculated by hours worked) at any time, unless the standards of the applicable joint apprenticeship committee confirmed by the Division of Apprenticeship Standards ("DAS"), establish a lower or higher maximum percentage. Where the standards permit a higher percentage, such percentage shall apply on Project Work. Where the applicable standards establish a lower percentage, the applicable Union will use its best efforts with the Joint Labor Management apprenticeship committee and, if necessary, the DAS to permit up to thirty percent (30%) apprentices on the Project. 14.2.2 The Unions agree to cooperate with the Contractor in furnishing apprentices as requested up to the maximum percentage. The apprentice ratio for each craft shall be in compliance, at a minimum, with the applicable provisions of the Labor Code relating to utilization of apprentices. The City shall encourage such utilization, and, both as to apprentices and the overall supply of experienced workers, the CW A Administrator will work with the Trades Council to assure appropriate and maximum utilization of apprentices and the continuing availability of both apprentices and journey persons. 14.2.3 The Parties agree that apprentices will not be dispatched to Contractors working under this Agreement unless there is a journeymen working on the project where the apprentice is to be employed who is qualified to assist and oversee the apprentice's progress through the program in which he is participating. 14.2.4 All apprentices shall work under the direct supervision of a journeyman from the trade in which the apprentice is indentured. A journeyman shall be defined as set forth in the California Code of Regulations, Title 8 [apprenticeship] section 205, which defines a journeyman as a person who has either completed an accredited apprenticeship in his or her craft, or has completed the equivalent of an apprenticeship in length and content of work experience and all other requirements in the craft which has workers classified as journeyman in the apprenticeable occupation. Should a question arise as to a journeyman's qualification under this subsection, the Contractor shall provide adequate proof evidencing the worker's qualification as a journeyman to the Trades Council. Section 14.3 Identification and Retention of Skilled Labor and Employment of Local Residents The Project Work will require large numbers of craft personnel and other supporting employees. It is therefore the understanding and intention of the Parties to use the opportunities provided by the extensive amount of work to be covered on these Projects to promote, through cooperative efforts, programs and procedures ( which may include, for example, programs to prepare persons for entrance into formal labor/management apprenticeship and/or training programs) to the community describing opportunities available as a result of the Project Work, for involvement of Local Residents in the construction industry, to assist them in entering the construction trades, 29 City of Palm Springs CWA 55575.18100\33346385.2 50 and, through utilization of labor/management apprenticeship and/or training programs, to provide training opportunities for Local Residents and students and graduates of the City wishing to pursue a career in construction. Such cost for programs and training will be the responsibility of the Union and contractors. The City will work with the Unions, trade groups, and Contractors, in marketing such potential job and training opportunities to encourage application from residents of the City of Palm Springs. Further, with concurrence from the CWA Administrator, the Contractors and the Unions will work together to promptly develop and implement procedures for the identification of craft needs, the scheduling of work to facilitate the utilization of available craft employees, and the securing of services of craft employees in sufficient numbers to meet the demand of the Project Work to be undertaken. The City will work with the Contractors and Unions in promoting said opportunities to encourage application from residents of the City of Palm Springs. ARTICLE 15 WORKING CONDITIONS Section 15.1 Meal and Rest Periods There will be no non-working times established during working hours except as may be required by applicable state law or regulations. Meal periods and Rest periods shall be as provided for in Wage Order 16. Individual coffee containers will be permitted at the employees' work location; however, there will be no organized coffee breaks. Section 15.2 Work Rules The City, the CWA Administrator, and/or relevant Contractor shall establish such reasonable work rules as they deem appropriate and not inconsistent with this Agreement. These rules will be posted at the work sites by the Contractor and may be amended thereafter as necessary. Failure to observe these rules and regulations by employees may be grounds for discipline up to and including discharge. Section 15.3 Emergency Use of Tools and Equipment There should be no restrictions on the emergency use of any tools by any qualified employee or supervisor, or on the use of any tools or equipment for the performance of work within the jurisdiction, provided the employee can safely use the tools and/or equipment involved and is compliance with applicable governmental rules and regulations. Section 15 .4 Access Restrictions for Cars Recognizing the nature of the work being conducted on the site, employee access by a private automobile may be limited to certain roads and/or parking areas. ARTICLE 16 PRE-JOB CONFERENCES Section 16.1 Each Primary Contractor which is awarded a Construction Contract by the City for Project Work shall conduct a Pre-Job conference with the appropriate affected Union(s) prior to commencing work. All Contractors who have been awarded contracts by the Primary Contractor shall attend the Pre-Job conference. The Trades Council and the CW A Administrator 30 City of Palm Springs CWA 55575.18100\33346385.2 51 shall be advised in advance of all such conferences and may participate if they wish. All work assignments shall be disclosed by the Primary Contractor and all Contractors at the Pre-Job conference in accordance with industry practice. Should there be any formal jurisdictional dispute raised under Article 8, the CW A Administrator shall be promptly notified. Primary Contractor shall have available at the Pre-Job conference the plans and drawing for the work to be performed on the Project. Should additional Project Work not previously included within the scope of the Project Work be added, the Contractors performing such work will conduct a separate pre-job for such newly included work. ARTICLE 17 LABOR/MANAGEMENT COOPERATION Section 17 .1 Joint Committee The Parties to this Agreement may establish a six ( 6) person Joint Administrative Committee (JAC). This JAC shall be comprised of three (3) representatives selected by the City and three (3) representatives selected by the Trades Council to monitor compliance with the terms and conditions of this Agreement and to recommend amendments to this Agreement, with the exception of the dollar threshold specified in Section 2.2(a) and the term of this Agreement under Section 22.1, when doing so would be to the mutual benefit of the Parties. Each representative shall designate an alternate who shall serve in his or her absence for any purpose contemplated by this Agreement. A quorum will consist of at least two (2) representatives selected by the City and at least two (2) representatives selected by the Trades Council. For voting purposes, only an equal number of City and Union representatives present may constitute a voting quorum. Section 1 7 .2 Functions of Joint Committee The Committee shall meet on a schedule to be determined by the Committee or at the call of the joint chairs, to discuss the administration of the Agreement, the progress of the Project, general labor management problems that may arise, and any other matters consistent with this Agreement. Substantive grievances or disputes arising under Articles 7, 8 or 10 shall not be reviewed or discussed by this Committee, but shall be processed pursuant to the provisions of the appropriate Article. The CW A Administrator shall be responsible for the scheduling of the meetings, the preparation of the agenda topics for the meetings, with input from the Unions the Contractors and the City. Notice of the date, time and place of meetings, shall be given to the Committee members at least three (3) days prior to the meeting. The CW A Administrator shall prepare quarterly reports on apprentice utilization and the training and employment of City residents, and a schedule of Project Work and estimated number of craft workers needed. The Committee or an appropriate subcommittee, may review such reports and make any recommendations for improvement, if necessary, including increasing the availability of skilled trades, and the employment of local residents or other individuals who should be assisted with appropriate training to qualify for apprenticeship programs. ARTICLE 18 SA VIN GS AND SEP ARABILITY Section 18.1 Savings Clause It is not the intention of the City, the CW A Administrator, Contractor or the Union parties to violate any laws governing the subject matter of this Agreement. The Parties hereto agree that in the event any provision of this Agreement is finally 31 City of Palm Springs CWA 55575.18100\33346385.2 52 held or determined to be illegal or void as being in contravention of any applicable law or regulation, the remainder of the Agreement shall remain in full force and effect unless the part or parts so found to be void are wholly inseparable from the remaining portions of this Agreement. Further, the Parties agree that if and when any provision(s) of this Agreement is finally held or determined to be illegal or void by a court of competent jurisdiction, the Parties will promptly enter into negotiations concerning the substantive effect of such decision for the purposes of achieving conformity with the requirements of any applicable laws and the intent of the Parties hereto. If the legality of this Agreement is challenged and any form of injunctive relief is granted by any court, suspending temporarily or permanently the implementation of this Agreement, then the Parties agree that all Project Work that would otherwise be covered by this Agreement should be continued to be bid and constructed without application of this Agreement so that there is no delay or interference with the ongoing planning, bidding and construction of any Project Work. Section 18.2 Effect of Injunctions or Other Court Orders The Parties recognize the right of the City to withdraw, at its absolute discretion, the utilization of the Agreement as part of any bid specification should a Court of competent jurisdiction issue any order, or any applicable statute which could result, temporarily or permanently in delay of the bidding, awarding and/or construction on the Project. Notwithstanding such an action by the City, or such court order or statutory provision, the Parties agree that the Agreement shall remain in full force and effect on covered Project Work to the maximum extent legally possible. ARTICLE 19 WAIVER A waiver of or a failure to assert any provisions of this Agreement by any or all of the Parties hereto shall not constitute a waiver of such provision for the future. Any such waiver shall not constitute a modification of the Agreement or change in the terms and conditions of the Agreement and shall not relieve, excuse or release any of the Parties from any of their rights, duties or obligations hereunder. ARTICLE20 AMENDMENTS The provisions of this Agreement can be renegotiated, supplemented, rescinded or otherwise altered only by mutual agreement in writing, hereafter signed by the negotiating Parties hereto. In the event of any conflict or ambiguity between this Agreement and any Attachment or exhibit, the provisions of this Agreement shall govern. City of Palm Springs CWA 55575.18100\33346385.2 ARTICLE21 32 53 DURATION OF THE AGREEMENT Section 21.1 Duration 21.1.1 This Agreement shall be effective from the date signed by all Parties and shall remain in effect for an initial period of five (5) years. Any covered Project Work awarded during the term of this Agreement shall continue to be covered hereunder, until completion of the Project Work, notwithstanding the expiration date of this Agreement. 21.1.2 This Agreement may be extended by written mutual consent of the City, as directed by the City Council and the signatory Unions for such further periods as the Parties shall agree to. Section 21.2 Turnover and Final Acceptance of Completed Work 21.2.1 Construction of any phase, portion, section, or segment of Project Work shall be deemed complete when such phase, portion, section or segment has been turned over to the City by the Contractor and the City has accepted such phase, portion, section, or segment. As areas and systems of the Project are inspected and construction-tested and/or approved and accepted by the City or third parties with the approval of the City, the Agreement shall have no further force or effect on such items or areas, except when the Contractor is directed by the City to engage and repairs or modifications required by its contract( s) with the City. 21.2.2 Notice of each final acceptance received by the Contractor will be provided to the Trades Council with the description of what portion, segment, etc. has been accepted. Final acceptance may be subject to a "punch" list, and in such case, the Agreement will continue to apply to each such item on the list until it is completed to the satisfaction of the City and Notice of Completion is issued by the City or its representative to the Contractor. At the request of the Union, complete information describing any "punch" list work, as well as any additional work required of a Contractor at the direction of the City pursuant to Section 22.2.1 above, involving otherwise turned-over and completed facilities which have been accepted by the City, will be available from the CW A Administrator. 21.1.3 This Agreement may be terminated, without cause, and without any liability, by either party at any time; provided, however, that if this Agreement is so terminated, the provisions of this Agreement shall continue to apply to any contract for which the notice inviting bids has been published prior to the effective date of any such termination. ARTICLE22 WAIVER OF RIGHT TO MONETARY DAMAGES The parties agree that the City would not have entered into this Agreement if it were to be liable for monetary damages under this Agreement. In general, and subject to those procedural prerequisites required under this Agreement, the Trades Council or any Union may pursue any remedy at law or equity available for the breach of this Agreement. However, City will not be liable in monetary damages to Trades Council, any Union, or to any other person, including, 33 City of Palm Springs CWA 55575.18100\33346385.2 54 without limitation, any Contractor, subcontractor or worker. Trades Council, Unions and any Contractor further covenants not to sue the City, or its officials, officers, employees or agents for monetary damages or claim any monetary damages related to any of the following: (A) Agreement; or Any breach of this Agreement or for any cause of action that arises out of this (B) Any taking, impairment, or restriction of any right or interest arising under this Agreement; or ( C) Any dispute regarding the application or inter_pretation of this Agreement. Nothing in this Article 22 shall affect or restrict the rights of the parties to pursue declaratory or injunctive (whether mandatory or prohibitive) relief from any court of appropriate jurisdiction. City of Palm Springs CWA 55575.18100\33346385.2 [This section intentionally left blank] [Signatures on Next Page] 34 55 IN WITNESS whereof the Parties have caused this Community Workforce Agreement to be executed as of the date and year above stated. CITY OF PALM SPRINGS By: ---------- City Manager ATTEST: By: ___________ _ City Clerk City of Palm Springs CWA 55575.18100\33346385.2 35 SAN BERNARDINO/RIVERSIDE COUNTIES BUILDING & CONSTRUCTION TRADES COUNCIL, AFL-CIO By:-------------- William J. Perez Executive Secretary/Business Manager 56 APPROVED AS TO FORM: City Attorney City of Palm Springs CWA 55575.18100\33346385.2 36 57 SAN BERNARDINO/RIVERSIDE COUNTIES BUILDING AND CONSTRUCTION TRADES COUNCIL, AFL-CIO CRAFT UNIONS AND DISTRICT COUNCILS Signatory Unions: Page 1 of2 Boilermakers Local 92: Bricklayers Local 4: Cement Masons Local 500: District Council #36 (Painters, Drywall Finishers, Glaziers, Resilient Floor): Electrical Workers Local 440: Elevator Constructors Local 18: ------------------ Heat & Frost Insulators Local 5: ------------------ Iron Workers Local 416: --------------------- Iron Workers Local 43 3: --------------------- Laborers Local 300: ----------------------- Laborers Local 1184: ---------------------- Operating Engineers Local 12: __________________ _ Plasterers Local 200: ---------------------- Plater Tenders 1414: _____________________ _ U.A. Local 345: ------------------------ U.A. Local 364: ------------------------ City of Palm Springs CWA 55575.18100\33346385.2 37 58 Signatory Unions - Page 2 of2 Roofers & Waterproofers Local 220: Sheet Metal Local 105: Road Sprinkler Fitters Local 669: Teamsters Local 166: ----------------------- Southwest Regional Council of Carpenters: City of Palm Springs CWA 55575.18100\33346385.2 38 59 ATTACHMENT A-LETTER OF ASSENT To be signed by all contractors awarded work covered by the City of Palm Springs Community Workforce Agreement prior to commencing work. CW A Administrator City of Palm Springs 101 North D Street Palm Springs, CA 9 __ Attn: -------- [Contractor's Letterhead] Re: Community Workforce Agreement -Letter of Assent Dear Sir/Madame: This is to confirm that [ name of company] agrees to be party to and bound by the City of Palm Springs Community Workforce Agreement effective __ _... 2019, as such Agreement may, from time to time, be amended by the negotiating parties or interpreted pursuant to its terms. Such obligation to be a party and bound by this Agreement shall extend to all work covered by the agreement undertaken by this Company on the project and this Company shall require all of its contractors and subcontractors of whatever tier to be similarly bound for all work within the scope of the Agreement by signing and furnishing to you an identical letter of assent prior to their commencement of work. Sincerely, [Name of Construction Company] By: .___ ________ __. Name and Title of Authorized Executive Contractor State License No.: ------------- Business Address: ------------------- Business Phone: --------------------- [Copies of this letter must be submitted to the CWA Administrator and to the Trades Council Consistent with Section 2.6 (b).] 39 City of Palm Springs CWA 55575.18100\33346385.2 60 ATTACHMENT B FIRST TIER ZIP CODES (CITY BOUNDARY including 20 MILE RADIUS) *Some Zip Codes shared with neighboring cities (https://www.zip-codes.com/county/ca-riverside.asp) 92201 92203 92210 92211 92220 92223 92230 92234 City of Palm Springs CW A 55575.18100\33346385.2 92236 92240 92241 92253 92260 92262 92264 92270 92276 92282 40 61 SECOND TIER ZIP CODES REMAINDER OF RIVERSIDE COUNTY, (https://www.zip-codes.com/county/ca-riverside.asp) ,i. ~ City of Palm Springs CW A 55575.18100\33346385.2 Zip Code 91752 92201 92225 92226 92235 92254 92274 92320 92501 92503 92504 92505 92506 92507 92508 92509 92518 92530 92532 92536 92539 92543 92544 92545 92548 92551 92553 92555 92571* 92557 92561 92562 92563 92570* 92567 92582 92583 92584 92585 92586 City Mecca Thermal Calimesa Riverside Riverside Riverside Riverside Riverside Riverside Riverside Jurupa Valley March Air Reserve Base Lake Elsinore Lake Elsinor Aguanga Hemet Homeland Moreno Valley Moreno Valley Moreno Valley Moreno Valley Mountain Center Murrieta Murrieta 41 Nuevo San Jacinto San Jacinto Menifee Menifee Menifee 62 92587 92590 92591 92592 92595 92596 92860 92879 92880 92881 92882 92883 Menifee Temecula Temecula Temecula Wildomar Winchester Norco Corona Corona Corona Corona Corona ~:":!c::.:!:::~-,!!:::=..!!u', ~~~~~~~~~!litiiM.1 _.,.--.. I I ... -I ' . ·-'.it'. ~, I ~ -I! . ~.:.~::~ ..... SliMIFdll City of Palm Springs CW A 55575.18100\33346385.2 t •.~ ; 1.• .ii • • ::: r -i., • • L ~• I' -• :,_• 7 'I' • .-r .. •-. -• • --- .~. ~·~""l'rl""'-1•,11 r •• ._ ....... 42 63 ATTACHMENT C CITY OF PALM SPRINGS CRAFT REQUEST FORM TO THE CONTRACTOR: Please complete and fax this form to the applicable union to request craft workers that fulfill the hiring requirements for this project. After faxing your request, please call the Local to verify receipt and substantiate their capacity to furnish workers as specified below. Please print your Fax Transmission Verification Reports and keep copies for your records. The City of Palm Springs Community Workforce Agreement establishes a goal that 30% of the total work hours shall be from Local ResidentsVeteFaBs, Feg&Faless ef vmeFe they Fesiae, aBa weFleeFS FesiaiRg : first, in those first tier zip codes which overlap all of the City of Palm Springs, as attached hereto, second, residing within Riverside County. For Dispatch purposes, employees residing within either of these two (2) areas, as well as \leteRms , Feg&Faless ehmeFe tlte~· Fesiae, shall be referred to as Local Residents. TO THE UNION: Please complete the "Union Use Only" section on the next page and fax this form back to the requesting Contractor. Be sure to retain a copy of this form for your records. CONTRACTOR USE ONLY To: Union Local # ____ _ Fax#...,__.,_ _____ _ Date: _________ _ Cc: CW A Administrator From: Company: ____________ _ Issued By: ____________ _ Contact Phone :...,______.. _______ _ Contact Fax: ..,____. __________ _ PLEASE PROVIDE ME WITH THE FOLLOWING UNION CRAFT WORKERS. Local Resident, Number Craft Classification Journeyman Veteran of (i.e., plumber, painter, or or workers Report Date Report Time etc.) Apprentice General Dispatch needed TOTAL WORKERS REQUESTED= Please have worker(s) report to the following work address indicated below: Project Name: __________ Site: _________ Address: _________ _ Report to: On-site Tel: On-site Fax: _______ _ Comment or Special Instructions: City of Palm Springs CW A 55575.18100\33346385.2 43 64 UNION USE ONLY Date dispatch request received: Dispatch received by: Classification of worker requested: Classification of worker dispatched: WORKER REFERRED Name: Date worker was dispatched: Is the worker referred a: JOURNEYMAN APPRENTICE LOCAL RESIDENT VETERAN GENERAL DISPATCH FROM OUT OF WORK LIST City of Palm Springs CW A 55575.18100\33346385.2 44 (check all that apply) Yes No -- -- Yes No ---- Yes No ---- Yes No ---- Yes No ---- 65 City of Palm Springs CW A 55575.18100\33346385.2 ATTACHMENT D List of Neutral Arbitrators [Subject to Confirmation] Mark Burstein Walter Daugherty Fred Horowitz Michael Prihar Louis Zigman 45 66 ATTACHMENT "E" SUBSTANCE ABUSE POLICY The Parties recognize the problems which drug and alcohol abuse have created in the construction industry and the need to develop drug and alcohol abuse prevention programs. Accordingly, the Parties agree that in order to enhance the safety of the work place and to maintain a drug and alcohol free work environment, individual Employers may require applicants or employees to undergo drug and alcohol testing. 1. It is understood that the use, possession, transfer or sale of illegal drugs, narcotics, or other unlawful substances, as well as being under the influence of alcohol and the possession or consuming alcohol is absolutely prohibited while employees are on the Employer's job premises or while working on any jobsite in connection with work performed under the Community Workforce Agreement ("CW A"). 2. No Employer may implement a drug testing program which does not conform in all respects to the provisions of this Policy. 3. No Employer may implement drug testing at any jobsite unless written notice is given to the Union setting forth the location of the jobsite, a description of the project under construction, and the name and telephone number of the Project Work Supervisor. Said notice shall be addressed to the office of each Union signing the Community Workforce Agreement. Said notice shall be delivered in person or by registered mail before the implementation of drug testing. Failure to give such notice shall make any drug testing engaged in by the Employer a violation of the CW A, and the Employer may not implement any form of drug testing at such jobsite for the following six months. 4. An employer who elects to implement drug testing pursuant to this Agreement shall require all employees on the Project Work to be tested. With respect to individuals who become employed on the Project Work subsequent to the proper implementation of this drug testing program, such test shall be administered upon the commencement of employment on the project, whether by referral from a Union Dispatch Office, transfer from another project, or another method. Individuals who were employed on the project prior to the proper implementation of this drug testing program may only be subjected to testing for the reasons set forth in Paragraph 5(f) (1) through 5(f) (3) of this Policy. Refusal to undergo such testing shall be considered sufficient grounds to deny employment on the project. 5. The following procedure shall apply to all drug testing: a. The Employer may request urine samples only. The applicant or employee shall not be observed when the urine specimen is given. An applicant or employee, at his or her sole option, shall, upon request, receive a blood test in lieu of a urine test. No employee of the Employer shall draw blood from a bargaining unit employee, touch or handle urine specimens, or in any way become involved in the chain of custody of urine or blood specimens. A Union Business Representative, subject to the approval of the individual applicant or employee, shall be 46 City of Palm Springs CW A 55575.18100\33346385.2 67 permitted to accompany the applicant or employee to the collection facility to observe the collection, bottling, and sealing of the specimen. b. The testing shall be done by a laboratory approved by the Substance Abuse & Mental Health Services Administration (SAMHSA), which is chosen by the Employer and the Union. c. An initial test shall be performed using the Enzyme Multiplied Immunoassay Technique (EMZT). In the event a question or positive result arises from the initial test, a confirmation test must be utilized before action can be taken against the applicant or employee. The confirmation test will be by Gas Chromatography Mass Spectrometry (GC/MS). Cutoff levels for both the initial test and confirmation test will be those established by the SAMHSA. Should these SAMHSA levels be changed during the course of this agreement or new testing procedures are approved, then these new regulations will be deemed as part of this existing agreement. Confirmed positive samples will be retained by the testing laboratory in secured long-term frozen storage for a minimum of one year. Handling and transportation of each sample must be documented through strict chain of custody procedures. d. In the event of a confirmed positive test result the applicant or employee may request, within forty-eight (48) hours, a sample of his/her specimen from the testing laboratory for purposes of a second test to be performed at a second laboratory, designated by the Union and approved by SAMHSA. The retest must be performed within ten (10) days of the request. Chain of custody for this sample shall be maintained by the Employer between the original testing laboratory and the Union's designated laboratory. Retesting shall be performed at the applicant's or employee's expense. In the event of conflicting test results the Employer may require a third test. e. If, as a result of the above testing procedure, it is determined that an applicant or employee has tested positive, this shall be considered sufficient grounds to deny the applicant or employee his/her employment on the Project Work. f. No individual who tests negative for drugs or alcohol pursuant to the above procedure and becomes employed on the Project Work shall again be subjected to drug testing with the following exceptions: 1. Employees who are involved in industrial accidents resulting in damage to plant, property or equipment or injury to him/her or others may be tested pursuant to the procedures stated hereinabove. 2. The Employer may test employees following thirty (30) days advance written notice to the employee(s) to be tested and to the applicable Union. Notice to the applicable Union shall be as set forth in Paragraph 3 above and such testing shall be pursuant to the procedures stated hereinabove. 3. The Employer may test an employee where the Employer has reasonable cause to believe that the employee is impaired from performing his/her job. 47 City of Palm Springs CW A 55575.18100\33346385.2 68 Reasonable cause shall be defined as exhibiting aberrant or unusual behavior, the type of which is a recognized and accepted symptom of impairment (i.e., slurred speech, unusual lack of muscular coordination, etc.). Such behavior must be actually observed by at least two persons, one of whom shall be a Supervisor who has been trained to recognize the symptoms of drug abuse or impairment and the other of whom shall be the job steward. If the job steward is unavailable or there is no job steward on the project the other person shall be a member of the applicable Union's bargaining unit. Testing shall be pursuant to the procedures stated hereinabove. Employees who are tested pursuant to the exceptions set forth in this paragraph and who test positive will be removed from the Employer's payroll. g. Applicants or employees who do not test positive shall be paid for all time lost while undergoing drug testing. Payment shall be at the applicable wage and benefit rates set forth in the applicable Union's Master Labor Agreement. Applicants who have been dispatched from the Union and who are not put to work pending the results of a test will be paid waiting time until such time as they are put to work. It is understood that an applicant must pass the test as a condition of employment. Applicants who are put to work pending the results of a test will be considered probationary employees. 6. The employers will be allowed to conduct periodic job site drug testing on the Project under the following conditions: a. The entire jobsite must be tested, including any employee or subcontractor's employee who worked on that project three (3) working days before or after the date of the test; b. Jobsite testing cannot commence sooner than thirty (30) days after start of the work on the Project; c. Prior to start of periodic testing, a business representative will be allowed to conduct an educational period on company time to explain periodic jobsite testing program to affected employees; d. Testing shall be conducted by a SAMHSA certified laboratory, pursuant to the provisions set forth in Paragraph 5 hereinabove. e. Only two periodic tests may be performed in a twelve month period. 7. It is understood that the unsafe use of prescribed medication, or where the use of prescribed medication impairs the employee's ability to perform work, is a basis for the Employer to remove the employee from the jobsite. 8. Any grievance or dispute which may arise out of the application of this Agreement shall be subject to the grievance and arbitration procedures set forth in the CW A. 9. The establishment or operation of this Policy shall not curtail any right of any employee found in any law, rule or regulation. Should any part of this Agreement be found 48 City of Palm Springs CW A 55575.18100\33346385.2 69 unlawful by a court of competent jurisdiction or a public agency having jurisdiction over the parties, the remaining portions of the Agreement shall be unaffected and the parties shall enter negotiations to replace the affected provision. 10. Present employees, if tested positive, shall have the prerogative for rehabilitation program at the employee 's expense. When such program has been successfully completed the Employer shall not discriminate in any way against the employee. If work for which the employee is qualified exists he/she shall be reinstated. 11. The Employer agrees that results of urine and blood tests performed hereunder will be considered medical records held confidential to the extent permitted or required by law. Such records shall not be released to any persons or entities other than designated Employer representatives and the applicable Union. Such release to the applicable Union shall only be allowed upon the signing of a written release and the information contained therein shall not be used to discourage the employment of the individual applicant or employee on any subsequent occasion. 12. The Employer shall indemnify and hold the Union harmless against any and all claims, demands, suits, or liabilities that may arise out of the application of this Agreement and/or any program permitted hereunder. 13. Employees who seek voluntary assistance for substance abuse may not be disciplined for seeking such assistance. Requests from employees for such assistance shall remain confidential and shall not be revealed to other employees or management personnel without the employee's consent. Employees enrolled in substance abuse programs shall be subject to all Employer rules, regulations and job performance standards with the understanding that an employee enrolled in such a program is receiving treatment for an illness. 14. This Memorandum, of Understanding shall constitute the only Agreement in effect between the parties concerning drug and alcohol abuse, prevention and testing. Any modifications thereto must be accomplished pursuant to collective bargaining negotiations between the parties. City of Palm Springs CW A 55575.18100\33346385 .2 49 70 DRUG ABUSE PREVENTION AND DETECTION APPENDIX A CUTOFF LEVELS SCREENING SCREENING CONFIRMATION DRUG METHOD LEVEL ** METHOD Alcohol EMIT 0.02% CG/MS Amphetamines EMIT 1000 ng/m* CG/MS Barbiturates EMIT 300 ng/ml CG/MS Benzodiazepines EMIT 300 ng/ml CG/MS Cocaine EMIT 300 ng/ml* CG/MS Methadone EMIT 300 ng/ml CG/MS Methaqualone EMIT 300 ng/ml CG/MS Opiates EMIT 2000 ng/ml* CG/MS PCP (Phencyclidine) EMIT 25 ng/ml* CG/MS THC (Marijuana) EMIT 50 ng/ml* CG/MS Propoxyphene EMIT 300 ng/ml CG/MS * SAMHSA specified threshold CONFIRMATION LEVEL 0.02% 500 ng/ml* 200 ng/ml 300 ng/ml 150 ng/ml* 100 ng/ml 300 ng/ml 2000 ng/ml* 25 ng/ml* 15 ng/ml* 100 ng/ml * * A sample reported positive contains the Indicated drug at or above the cutoff level for that drug. A negative sample either contains no drug or contains a drug below the cutoff level. EMIT -Enzyme Immunoassay CC/MS -Gas Chromatography/Mass Spectrometry City of Palm Springs CW A 55575.18100\33346385.2 so 71 SIDE LETTER OF AGREEMENT TESTING POLICY FOR DRUG ABUSE It is hereby agreed between the parties hereto that an Employer who has otherwise properly implemented drug testing, as set forth in the Testing Policy for Drug Abuse, shall have the right to offer an applicant or employee a "quick" drug screening test. This "quick" screen test shall consist either of the "ICUP" urine screen or similar test or an oral screen test. The applicant or employee shall have the absolute right to select either of the two "quick" screen tests, or to reject both and request a full drug test. An applicant or employee who selects one of the quick screen tests, and who passes the test, shall be put to work immediately. An applicant or employee who fails the "quick" screen test, or who rejects the quick screen tests, shall be tested pursuant to the procedures set forth in the Testing Policy for Drug Abuse. The sample used for the "quick" screen test shall be discarded immediately upon conclusion of the test. An applicant or employee shall not be deprived of any rights granted to them by the Testing Policy for Drug Abuse as a result of any occurrence related to the "quick" screen test. City of Palm Springs CW A 55575.18100\33346385.2 51 72 RE: City of Perris Bids -December 2019 thru February 2021 Community Workforce Agreement (CWA) Effective since August 2019 A review of CWA Covered Proiects: 1 ). Nuevo Road Bridge reconstruction and • Engineers estimate -$10 .2 million. Widening • 7 bids - 3 bids below the estimate CW A Covered Project • Lowest bid -$8,649,999 million 2). Morgan Park Phase II • Engineers estimate -$3.475 million. CW A Covered Project • 7 bids -3 bids below estimate • Lowest bid -$3,300,520 million 3). Goetz Road Widening Improvement • Engineers estimate -$6.6 million. Project • 8 bids - 5 below estimate CW A Covered Project • Lowest bid -$6,144,444 million. 4 ). Clearing and Grubbing Work/Enchanted • Estimated value -$150,000.00 Hills Park • 2 bids* CW A Covered Project • Lowest bid -$158,500.00; 5.6% over estimated value. *The background and discussion provided to the Perris City Council referenced the fact that only two (2) bids were received and went on to claim that the specifications included the CW A requirement, "Which may have resulted in a low bid response". A review ofNon-CWA Covered Projects: I). Copper Creek Park • Engineers estimate -$489,103.00. Non-Covered Project • 5 bids -lowest bid, $536,400.00 (non- responsive) • Low awarded bid -$687,255.00; 40% over engineers estimate 2). Civic Center Improvements • Estimated value -$575,000.00 Non-Covered Project • 7 bids-Lowest bid, $557,000.00 • 6 bids exceeded the estimate. • 3). "A" Street at, Nuevo Road ADA Ramps • Engineers estimate -$300,000.00. Non-Covered Project • 7 Bidders -Lowest bid, $284,600 • 5 bids exceeded the estimate 73 4 ). 3rd Street and "C" Street Traffic Calming • Engineers estimate -$90,000.00. Improvements • 4 Bidders -Lowest bid, $151,252.00 Non-Covered Project • 69% over engineers estimates. 5). Civic Center Improvements • Estimate value, $200,000.00. 22 7 North D Street • 2 Bidders -Lowest bid, $313,348.56. Non-Covered Project • * Awarded -56% overestimate. • Note: No commentary on the 2 bidders, as there was on the Enchanted Hills Project; a CW A Covered Project. 6). GEAR Class III Lane Project • Engineers estimate -none. Non-Covered Project • Low and only bidder -$69,981.00. • Note: No commentary regarding "lack of bidders". 74