COMMISSION AGENDA MEMORANDUM ACTION ITEM DATE: June 23, 2025 TO: Stephen P. Metruck, Executive Director FROM: Janice Zahn PE., CCM, Chief Engineer Greg Gauthier, Labor Relations Manager Item No. Date of Meeting 8g July 8, 2025 SUBJECT: Memorandum of Understanding between the Port of Seattle and Seattle/King County Building and Construction Trades Council and Western States Regional Council of Carpenters ACTION REQUESTED Request Commission authorization for the Executive Director to execute a Memorandum of Understanding (MOU) related to the 2018 Project Labor Agreement (PLA) between the Port of Seattle and Seattle/King County Building and Construction Trades Council (SBT) and Western States Regional Council of Carpenters. EXECUTIVE SUMMARY The purpose of this MOU is to standardize the working conditions provisions between the 2019 PLA and the 2024 PLA. In December 2024 the Port and SBT entered into a 5-year Project Labor Agreement to replace the prior version. The 2024 PLA eliminated the Substance Abuse Section which mandated drug testing by the Port and specified the responsibility for drug testing was with the Contractor. The Port will be verifying the Contractor's Drug Free workplace policies. The 2018 PLA included a Substance Abuse Section and drug testing by the Port continues as part of that provision. This MOU will allow the Port to contractually modify the 16 current Port projects operating under the 2018 PLA to match the provisions of the 2024 PLA regarding drug testing responsibility. The Port will then terminate the drug testing contract. JUSTIFICATION One of the primary goals of the Project Labor Agreement is to standardize working conditions on Port of Seattle capital projects. This MOU provides consistent working conditions for all Port including all PLA and non-PLA projects. Currently contractors already have drug-free workplace programs, which include testing. This MOU will remove the duplication of efforts by the Port and contractors saving the Port the cost Template revised September 22, 2016. COMMISSION AGENDA - Action Item No. 8g Meeting Date: July 8, 2025 Page 2 of 2 of its current drug testing program. Finally, the MOU will result in the Port being consistent with all other public owners in the region, none of whom do their own drug testing. DETAILS Currently there are 16 capital projects working under the 2018 PLA that remains in effect until those projects are completed in Q4 2026. Six (6) capital projects under the 2024 PLA are in construction. FINANCIAL IMPLICATIONS From 2019 through 2024 an average of just over 1,520 drug tests per year were administered by the Port. Elimination of Port drug testing will save $152,000 per year for the cost of the testing service. Additional savings will occur by eliminating the labor cost associated with drug testing. Labor savings are estimated to be 2,280 construction labor hours per year and $285,000 per year. In total cost savings are estimated to be $437,000 per year. ATTACHMENTS TO THIS REQUEST (1) Memorandum of Understanding between the Port of Seattle and Seattle/King County Building and Construction Trades Council and Western States Regional Council of Carpenters PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None Template revised September 22, 2016; format updates October 19, 2016.