The Irvine City Council recently approved a new Project Labor Agreement (PLA) for city construction projects, a measure critics contend could restrict work opportunities for many local construction workers. Introduced by Irvine Mayor Farrah Khan at a recent meeting, the agreement faced questions regarding its negotiation process and potential financial impact on taxpayers.
Under the newly approved PLA, an estimated 80% of Irvine’s construction workers could be blocked from city construction projects. This agreement is also projected to increase costs for taxpayers. If Irvine completes $200 million in construction, the PLA could add approximately $30 million to expenses. Southern California has seen similar cost increases and reduced bidder participation in other agencies, including Midway City Sanitary District, the City of Long Beach, and the City of Palm Springs.
Concerns were raised about how the agreement reached the City Council. A representative for the Western Electrical Contractors Association questioned the process, noting the absence of separate votes to initiate and then approve final negotiations, suggesting the deal appeared secretive. Former Attorney General Kamala Harris previously stated that PLAs should not be negotiated in secret or closed session. Questions submitted to the City Council about potential cost increases and reduced bidders reportedly went unaddressed.
Mayor Khan’s political consultant, Melahat Rafiei, is referenced in connection with other undisclosed deals. Rafiei was reportedly involved in the federal corruption investigation concerning the proposed sale of Angel Stadium land in Anaheim. As a confidential FBI witness in that probe, federal investigators stated they believed fraud, bribery, obstruction of justice, witness tampering, and other corruption occurred. An FBI affidavit also alleged Rafiei omitted material facts and, on other occasions, offered to pay bribes to elected public officials. Additionally, Rafiei reportedly pleaded guilty in 2018 to a scheme involving bribery of two councilmembers related to Irvine pot dispensaries. Irvine Councilwoman Tammy Kim, who employed Rafiei, claimed Rafiei regularly attempted to influence city hall on Kim’s behalf and had access to city staff through the mayor’s office. Councilwoman Kathleen Treseder also claimed Rafiei admitted to arranging a deal to secure a state Coastal Commission position for Farrah Khan.
During the City Council's vote on the PLA, Republican Councilmember Mike Carroll cast the sole "no" vote. The four other Democratic Councilmembers voted in favor of the agreement. Mayor Farrah Khan is term-limited and cannot seek re-election in 2024. Irvine Vice Mayor Tammy Kim and Veteran Councilman Larry Agran have both announced their candidacies for Mayor of Irvine in the upcoming 2024 election.
