Los Angeles Municipal Code § 10.45 Purpose

Each year, the City awards hundreds of millions of dollars in public works construction contracts to private contractors. This article, also referred to as the Public Infrastructure Stabilization Ordinance, advances the interests of the City by promoting the use of project labor agreements for those public works construction projects meeting certain criteria.

Project labor agreements are the preferred tool to ensure that important proprietary goals of the City are achieved. These goals include completion of construction projects on time and within budget by minimizing labor misunderstandings, grievances and conflict, and by emphasizing worker safety.

Project labor agreements also advance the City’s interests by ensuring that unemployed and under-employed residents will receive employment opportunities at City public works construction projects. Over the years, project labor agreements have proven to be an excellent mechanism to promote the hiring of unemployed and under-employed City residents. These agreements have proven their effectiveness in targeting construction employment and training opportunities to mitigate the harm caused by poverty which is geographically concentrated.

City public works construction contracts are subject to the State’s prevailing wage laws or, in some instances, the Federal Davis-Bacon wage statute, each of which provides covered workers with substantially greater wages and benefits than otherwise required by law. Increasing access to employment opportunities where prevailing wages are paid is one way for the City to directly combat poverty and stimulate economic reinvestment.

In addition, having the opportunity to work on a City contract affords workers valuable experience which can be used to garner future employment. The City has an interest in expanding the field of competent construction workers to address the problems associated with a significant local unemployed, under-employed and unskilled workforce. The City serves this interest by expanding the opportunities workers have to be referred for employment by private contractors who are employed by the City.

Further, many unemployed and under-employed City residents are interested in getting good work and learning a construction trade. Young people constitute a significant portion of the City’s unemployed and under-employed residents. Experience indicates that unemployment and under-employment contribute to devastating social burdens, including a sustained large population of unskilled workers, increased crime and increased need for costly social services. The City, as a principal provider of social support services, has an interest in promoting an employment environment that protects such limited resources. In creating a program that helps link contractors with potential construction workers, the City serves this interest and provides greater opportunities for employment on public works construction contracts.

In February 2008, the Economic Roundtable released a study commissioned by the Community Development Department titled

“Concentrated Poverty in Los Angeles”. For purposes of the study, concentrated poverty was defined as a census tract with 40 percent or more of households below the poverty level in 2000. The study found that the City of Los Angeles had higher rates of concentrated poverty than the nation and the broader Los Angeles region. In fact, “Nineteen percent or over 238,000 of the 1.3 million households in the City of Los Angeles were living below the federal poverty threshold in 2000. A quarter of the census tracts in the City (216 tracts) have poverty rates of at least 30 percent.”

The City’s areas of concentrated poverty are growing in size and increasing in number. The City desires to address this problem by creating programs that train and employ people living in these areas of concern.

The Public Infrastructure Stabilization Ordinance targets construction employment and training opportunities in ways calculated to mitigate the harm caused by geographically concentrated poverty, to address unemployment and under-employment in neighborhoods where poverty is concentrated, and to advance the skills of the local labor pool, especially the youth, by maximizing opportunities to earn a prevailing wage.

To further serve these interests, the Port of Los Angeles, the Los Angeles World Airports, the Department of Water and Power, and the Housing Authority of the City of Los Angeles are encouraged to adopt policies consistent with this article.

SECTION HISTORY

Added by Ord. No. 181,520, Eff. 2-20-11. Amended by: In Entirety, Ord. No. 184,662, Eff. 1-25-17.

The following definitions shall apply throughout this article:

“Apprentice” means any worker who is indentured in a bona fide construction apprenticeship program registered and approved by the State of California, Division of Apprenticeship Standards (DAS) or, in the case of Projects with federal funding, in a bona fide apprenticeship program approved by the United States Department of Labor (DOL) and California DAS.

“City” means the City of Los Angeles, a municipal corporation.

“Construction” means construction as well as alteration, demolition, installation and repair work as mandated by California Labor Code Section 1720(a)(1), and includes maintenance work as mandated by California Labor Code Section 1771.

“Contract” means a contract for a public works Construction project.

“Contractor/Subcontractor/Employer” means any individual firm, partnership, owner-operator, or corporation, or combination thereof, including joint ventures, which is an independent business enterprise and which has entered into a Contract with Public Works or any of its contractors or subcontractors/ owner-operators of any tier, with respect to the Construction of any part of any Project Work.

“Designated Administrative Agency ” or “DAA” means the Department of Public Works, Bureau of Contract Administration, which shall bear administrative responsibilities under this article, including rule making.

“Local Resident” means either: (i) an individual whose primary place of residence is within the City of Los Angeles and is within a zip code having at least two census tracts (or portions thereof) in which the median annual household income is less than 50 percent of the County of Los Angeles’ median annual household income, and/or at least two census tracts (or portions thereof) where the rate of unemployment exceeds 200 percent of the County of Los Angeles’ unemployment rate as reported by the most recent U.S. Census Bureau Data; or (ii) an individual whose primary place of residence is within the City of Los Angeles and is within a zip code having at least two census tracts (or portions thereof) in which the median annual household income is less than the County of Los Angeles’ median annual household income and/or at least two census tracts (or portions thereof) where the rate of unemployment exceeds 100 percent of the County of Los Angeles’ unemployment rate as reported by the most recent U.S. Census Bureau data; or (iii) any individual whose primary place of residence is within the City of Los Angeles and who is a Transitional Worker.

“Project Work” means work performed by Council-controlled departments in Construction of a public works improvement project subject to the Department of Public Works Project Labor Agreement.

“Public Works” means the Department of Public Works of the City.

“Transitional Worker” means an individual whose primary place of residence is within the City of Los Angeles and who, prior to commencing work on a Project, has been certified as having veteran status; has a documented history of involvement with the criminal justice system; or is a person experiencing homelessness. If a jobs coordinator or employer is not able to identify an adequate number of workers certified as having veteran status, having documented involvement with the criminal justice system, or experiencing homelessness, then a Transitional Worker may be either a graduate of a Los Angeles/Orange Counties Building and Construction Trades Council-approved Multi-Craft Core Curriculum (MC3) pre-apprenticeship program, or an individual facing at least two of the following barriers to employment: having a household income that is less than 50 percent of the Los Angeles County Median annual household income; receiving public assistance; lacking a GED or high school diploma; being a custodial single parent; suffering from long-term unemployment; being emancipated from the foster care system; or being an apprentice with less than 15 percent of the apprenticeship hours required to graduate to journey level in a labor/management construction apprenticeship program approved by the California Division of Apprenticeship Standards (California DAS), or in the case of projects with federal funding, approved by both the United States Department of Labor and the California DAS.

SECTION HISTORY

Added by Ord. No. 181,520, Eff. 2-20-11. Amended by: In Entirety, Ord. No. 184,662, Eff. 1-25-17; Ord. No. 188,277, Eff. 7-28-24.

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

SECTION HISTORY

Added by Ord. No. 181,520, Eff. 2-20-11. Amended by: In Entirety, Ord. No. 184,662, Eff. 1-25-17.

The DPW-PLA shall include provisions that obligate a Contractor to follow targeted hiring procedures to make reasonable efforts to achieve specific hiring opportunities for Local Residents, Apprentices and Transitional Workers:

(a) The Contractor and Subcontractor retain the authority in making individual hiring decisions; and

(b) Hours worked by residents of states other than California shall not be included in the calculations of total hours of Project Work for purposes of determining whether the Contractor and Subcontractor achieved the percentage requirements set forth in the DPW- PLA authorized in this article.

SECTION HISTORY

Added by Ord. No. 181,520, Eff. 2-20-11. Amended by: In Entirety, Ord. No. 184,662, Eff. 1-25-17.

This Article does not prevent a Contractor from filling job vacancies or newly created positions by transfer or promotion of its existing staff.

SECTION HISTORY

Added by Ord. No. 181,520, Eff. 2-20-11.

(a) The DAA shall promulgate rules and regulations to assure efficient implementation and enforcement of this Article.

(b) The DAA may delegate duties to other City departments and provide for the manner in which exemptions from this Article are approved and documented.

(c) The DAA shall develop the forms to be used toward implementing this Article.

(d) The DAA shall investigate alleged violations of this Article and monitor compliance with this Article.

(e) The DAA shall annually report to the Board of Public Works after the ordinance is adopted, or as otherwise instructed by City Council.

SECTION HISTORY

Added by Ord. No. 181,520, Eff. 2-20-11.

If the DAA determines that a Contractor has violated this Article, the DAA may recommend that the Board of Public Works take any of the following actions:

(a) Withhold payments as liquidated damages pursuant to the Contract.

(b) Terminate, suspend or cancel the contract in whole or in part.

(c) Debar the contractor from bidding on City projects for up to a two-year period.

(d) Document the determination in the Contractor Evaluation required under Los Angeles Administrative Code Section 10.39, et
seq.

(e) Require that the Contractor document the determination in each of the Contractor’s subsequent Contractor Responsibility
Questionnaires submitted under Los Angeles Administrative Code Section 10.40, et seq.

(f) The City may pursue any and all rights and remedies available at law or in equity.

SECTION HISTORY

Added by Ord. No. 181,520, Eff. 2-20-11.

The following Contracts are exempt from this Article. The DAA shall develop rules and regulations for the application of these exemptions:

(a) Contracts where the provisions of this Article conflict with federal or state law.

(b) Contracts with another governmental entity.

(c) Contracts where the provisions of this Article would conflict with federal or state grant funded contracts, or conflict with the

terms of the grant or subvention.

(d) Contracts awarded under urgent or emergency circumstances.

SECTION HISTORY

Added by Ord. No. 181,520, Eff. 2-20-11.

This Article is applicable to Contracts entered into after the rules and regulations have been promulgated by the DAA.

SECTION HISTORY

Added by Ord. No. 181,520, Eff. 2-20-11.

This Article does not create beneficial interests in any person who is not a party to the Contract.

SECTION HISTORY

Added by Ord. No. 181,520, Eff. 2-20-11.

Sec. 10.45.10. [Reserved.]

This Article shall not be construed to limit a person’s right to bring legal action for violation of other laws.

SECTION HISTORY

Added by Ord. No. 181,520, Eff. 2-20-11.

If a court of competent jurisdiction finds any provision of this Article invalid, the remaining provisions shall remain in full force and effect.

SECTION HISTORY

Added by Ord. No. 181,520, Eff. 2-20-11.