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CC - ACTION ITEM: Discussion of the Use of Project Labor Agreements and Community Workforce Agreements to Complete Public Works and other City Projects and Direction to the City Manager as Deemed Appropriate.
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Meeting Date: January 26, 2026
Contact Person/Dept.: Yanni Demitri/Public Works
Christopher Evans/Public Works
Phone Number: (310) 253-5630
(310) 253-5621
Fiscal Impact: Yes [X] No [X] General Fund: Yes [ ] No [X]
Attachments: Yes [X] No [ ]
Public Notification: (E-Mail) GovDelivery: Meetings and Agendas - City Council (01/22/2026)
Department Approval: Yanni Demitri, Public Works Director/City Engineer (10/23/2025)
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RECOMMENDATION
Staff recommends the City Council discuss the use of Project Labor Agreements (PLAs) and/or Community Workforce Agreements (CWAs) for Public Works projects and other projects receiving City funds and to direct the City Manager as deemed appropriate.
BACKGROUND/DISCUSSION:
On September 8, 2025, the City Council requested that discussion of PLAs be placed on the agenda for City Council discussion.
Staff reviewed the concept and applicability of PLAs and/or CWAs, as they are sometimes titled, which are summarized below for discussion purposes.
Project Labor Agreements
A PLA and/or CWA is a pre-hire contract or agreement between a public or private agency with a labor union that establishes the terms and conditions of employment for a specific construction project, or range of construction projects that would be performed by contractors. Non-union contractors may bid on PLA required projects; however, they may be required to register with the applicable union, agree to union terms and conditions, and pay union benefits into a union trust fund. The specific provisions of PLAs vary depending on the agency, and individual project goals. Typical provisions include:
1. Striking Prohibited: Provisions to prevent any worker strikes, lockouts, or other work stoppages for the duration of the project.
2. Union Labor: Requirements that employees hired for the project be referred through union hiring halls.
3. Payment of Dues: That nonunion workers pay union dues for the duration of the project, and that the contractor follow union rules regarding pensions, work conditions and dispute resolution.
To use PLAs in California, a public entity, pursuant to Public Contract Code 2500(a) (see Attachment 1), must ensure that the agreement has certain taxpayer protection provisions, including the following:
1. Anti-Discrimination Clause: The PLA prohibits discrimination based on race, national origin, religion, sex, sexual orientation, political affiliation or membership in a labor organization in hiring and dispatching workers for the project.
2. Competition: The PLA permits all qualified contractors and subcontractors to bid for and be awarded work on the project without regard to whether they are otherwise parties to collective bargaining agreements.
3. Drug Testing: The agreement contains an agreed-upon protocol concerning drug testing for workers who will be employed on the project.
4. Arbitration: The agreement provides that disputes arising from the agreement shall be resolved by a neutral arbitrator.
Community Workforce Agreements, a form of PLA, may include in its terms and conditions additional requirements such as hiring local and underrepresented groups, veterans, minorities, low-income individuals, and women. CWAs may also require training, pre-apprenticeship programs, and forming partnerships with disadvantaged businesses and/or community-based organizations.
Neighboring cities with/without PLA and/or CWA requirements are summarized below:
• The City of Santa Monica does not require PLAs for its capital improvement projects
• The City of Inglewood does not require PLAs for all contractors and projects. However, CWAs may be required for specific, large-scale projects such as for the construction of Sofi Stadium.
• The City of Beverly Hills does not require PLAs for its capital improvement projects
Staff also reviewed the PLA requirements for several larger regional cities:
• The City of Long Beach (population 466,742) has a citywide PLA with the Los Angeles Orange County Building and Construction Trades Council that covers most capital improvement projects. The PLA is not applicable to off-street projects under $750,000 and on-street projects under $1,000,000. (see Attachment 2)
• The City of Los Angeles (population 3.88 million) has a citywide PLA with the Los Angeles Orange County Building and Construction Trades Council that covers all projects included in their annual Public Infrastructure Program Series List that are designated by the Board of Public Works for coverage. Projects not covered by the PLA are typically beneath cost thresholds and depend on their category as determined by the Board of Public Works. (see Attachment 3)
In reviewing PLA usage by public entities staff found that they are not typically used for smaller capital improvement projects, even for public agencies that use them. Reasons for not using them by smaller cities, and/or for smaller projects include:
• Administration: Negotiating time and administration costs to establish and then ensure compliance with the PLA for a small project can outweigh the benefits, making it more complex and costly than the project warrants.
• Applicability: Smaller projects are unlikely to experience labor unrest or strikes.
• Reduced Competition: The requirements of a PLA, such as adhering to union contracts and apprenticeship programs, can be too burdensome or costly for smaller, nonunion contractors who in turn, avoid bidding on these projects.
• Limited Benefit: For projects involving a single craft, short duration, or specialized work, the benefits of a PLA are often not significant enough to justify the effort.
• Eligible Population: A smaller city or town may have too few potential construction workers who would benefit from the terms and conditions of a PLA/CWA, making it difficult to achieve pre-determined objectives for hiring local.
Culver City does not currently use PLAs/CWAs, however:
1. All capital improvement projects funded at least partially with State or Federal grants usually trigger the payment of prevailing wages, fair hiring practices, and other labor right requirements as a condition to receiving those funds when selecting contractors to complete those projects.
2. Many large capital improvement projects are performed by union contractors or contractors employing union labor.
3. Per California law, the Culver City Municipal Code requires the payment of prevailing wages for City funded Public Works projects that exceed $25,000.
FISCAL ANALYSIS
There is no fiscal impact to discussing this issue. The fiscal impact will depend on the direction given by the City Council.
ATTACHMENTS
1. 2026-01-26_ATT_California Public Contract Code 2500:
o <https://law.justia.com/codes/california/code-pcc/division-2/part-1/chapter-2-8/section-2500/>
2. 2026-01-26_ATT_City of Long Beach Project Labor Agreement:
o <https://www.longbeach.gov/finance/business-info/compliance/project-labor-agreement/>
3. 2026-01-26_ATT_City of Los Angeles Department of Public Works Project Labor Agreement:
o https://codelibrary.amlegal.com/codes/los_angeles/latest/laac/0-0-0-72175#JD_10.45.2.
recommended action
MOTIONS
That the City Council:
Discuss the use of Project Labor Agreements and Community Workforce Agreements to Complete Public Works and other City projects and direct the City Manager as deemed appropriate.