Irvine’s City Council recently approved a construction deal, known as a Project Labor Agreement (PLA), that critics contend will significantly increase costs for city taxpayers and exclude a large portion of the local construction workforce. The deal, presented at a recent City Council meeting, was described as “secretly negotiated” and faced immediate scrutiny regarding its financial implications and the process leading to its approval.
Concerns center on the potential for higher expenses. If Irvine undertakes $200 million in construction, the PLA could add approximately $30 million to taxpayer costs. Questions about potential cost increases and reduced bidding competition, raised during the meeting and via email, were reportedly not addressed by the City Council. Past examples from Southern California, including Midway City Sanitary District, the City of Long Beach, and the City of Palm Springs, show prior instances of cost increases and fewer bidders in similar situations.
The Western Electrical Contractors Association raised concerns about the deal's negotiation process, noting it bypassed the usual public steps of an initial vote to begin negotiations and a subsequent vote on the final language. Former Attorney General Kamala Harris has stated that PLAs should not be negotiated in secret or closed sessions.
Attention has also turned to Mayor Farrah Khan's political consultant, Melahat Rafiei, whose past activities have been publicly documented. Rafiei was linked to a federal corruption investigation involving the proposed sale of Angel Stadium land in Anaheim, where the LA Times reported accusations of her trying to bribe public officials. FBI investigators indicated that while Rafiei initially cooperated, she “omitted material facts to investigators” and allegedly offered bribes to elected public officials.
Further documented instances include Rafiei pleading guilty to a scheme to bribe two councilmembers in Irvine in 2018, as reported by The Voice of OC. Irvine Councilwoman Tammy Kim claimed Rafiei frequently attempted to intervene in city hall matters on Kim’s behalf and “had access to city staff on the mayor’s behalf.” Additionally, Councilwoman Kathleen Treseder claimed Rafiei admitted to arranging a deal for Farrah Khan regarding the state Coastal Commission.
The new PLA has prompted questions about any role Rafiei may have played in its negotiation, given her history and her client list, which includes officials in cities like Anaheim, Long Beach, Garden Grove, and Los Angeles—cities that also have PLAs. Such agreements are sometimes seen as attempts to gain favor with labor unions, particularly when politicians seek higher office. Mayor Khan is term-limited in 2024.
Ultimately, the Irvine City Council voted on the PLA, with only Republican Councilmember Mike Carroll opposing it. The other four Democrat Councilmembers voted in favor. Critics maintain that the policy will result in a $30 million cost to Irvine taxpayers and will exclude 80% of the city’s construction workers.
