In November 2016, the voters of the City of Los Angeles approved Proposition HHH. Proposition HHH authorizes the City to issue $1.2 billion in bonds over ten years, the proceeds of which are to be used to provide safe, clean and affordable housing for the homeless and for those in danger of becoming homeless, such as battered women and their children, veterans, seniors, foster youth and the disabled; and to provide facilities to increase access to mental health care, drug and alcohol treatment, and other services.
To achieve its goal of creating up to 10,000 permanent supportive housing units to address citywide homelessness and the homeless housing shortage, the City anticipates providing financial assistance to private firms to construct the housing development and improvement projects authorized by Proposition HHH. As part of the implementation of this program, the City desires to reinvest into its local neighborhoods and residents by training and employing them on Proposition HHH funded projects. This article, also referred to as the Permanent Supportive Housing and Facilities Infrastructure Stabilization Ordinance, advances the interests of the City by promoting the use of project labor agreements for those Proposition HHH funded construction projects that meet certain criteria.
Project labor agreements are the preferred tool to ensure that important proprietary goals of the City are achieved, including completion of construction projects on-time and within budget by minimizing labor misunderstandings, grievances and conflict along with emphasizing worker safety.
Project labor agreements also advance the City's interest by ensuring that unemployed and under-employed residents will receive employment opportunities at construction projects financed in part or whole by the City. 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 geographically concentrated poverty.
Construction contracts financed in part or whole with City funds 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 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 directly to combat poverty and stimulate economic reinvestment.
In addition, having the opportunity to work on a contract or project with City financial assistance 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 receive financial assistance from the City.
Further, many unemployed and under-employed City residents are interested in working in and learning a construction trade. Young people constitute a significant portion of this 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 Proposition HHH funded construction contracts.
In February 2008, the Economic Roundtable released a study commissioned by the Community Development Department titled, "Concentrated poverty in Los Angeles." The study found that the City 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 were living below the federal poverty threshold in 2000." According to U.S. Census Bureau data, by 2015 the number of households living in poverty increased to 23 percent or over 309,000 of the 1.342 million households in the City.
The Permanent Supportive Housing and Facilities 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 underemployment 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.
SECTION HISTORY
Added by Ord. No. 185,523, Eff. 6-12-18.