09-584�; �
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Presented
� 1�2ESOLUTION
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CouncilFile# � 1'�O`�
Green Sheet # �
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1 WHEREAS, in undertaking building and construction, pazks and public works projects, the City of Saint
2 Paul has a compelling proprietary and economic interest in ensuring that construction proceeds in a timely,
3 cost-effective manner, with the highest de�ree of quality and with minimal delays and disruption, and with
4 the highest degree of safety for warkers and the public; and
6 WHEREAS, a project labor a�eement ("PLA") is a form of multi-employer, multi-craft pre-hire
7 collective bargaining agreement covering terms and conditions of employment for construction employees
8 on a particular construction proj ect; and
10 WHEREAS, throughout the country, public and private construction owners regularly utilize and require
11 PLAs far billions of dollars worth of construction each year; and
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13 WHEREAS, the City and other public agencies and private owners in the City of Saint Paul have
14 successfully completed projects on time and on budget under PLAs for numerous projects; and
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16 WHEREAS, the Rondo Library PLA entered into by the City of Saint Paul and the Saint Paul Building
17 and Construction Trades Council in December 2004 is one example of a PLA entered into by the City; and
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WHEREAS, the PLAs entered into by the Saint Paul Public Schools, Regions Hospital, HealthEast/St.
Joseph's Hospita?, Concordia University and Upper Landing and the Saint Paul Building and Construction
Trades Council are other examples of PLAs entered into by contractors and labor organizations; and
WHEREAS, the City of Saint Paul wishes to formalize a process in which it reviews building and
construction, parks and public works contracts for the need to include PLAs that establish uniform terms
and condirions of employment for the contractors and craft construction employees warking on a project,
because such have been shown to provide an effective mechanism for overall construction project staffing
and planning because they allow project owners to:
(i)
(ii)
(iii)
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(v)
Predict their labor costs and requirements up-front, and, therefore, more accurately estimate
actual total project costs; and
Promote cost-effective, timely, and safe construction project delivery, by providing access
to a reliable supply of properly trained and skilled construction craft personnel far all
aspects of the project; and
Assure greater productivity and quality from construction craft personnel, thereby yielding
cost-effective proj ects, while also reducing maintenance and repair costs over the life of the
project; and
Integrate wark schedules and standardize work rules for the proj ect, to provide a well-
coordinafed, efficiently functioning conshuction worksite that will minimize delays, foster
labor harmony, promote quality, and maintain proj ect safety; and
Assure that conshuction will proceed without interruptions from staffing shortages, hi;h
employee turnover, safety incidents, and labor disputes, by providing reliable project
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staffing, contractual guarantees against work stoppages, and mutually bindin� procedures
for resolving disputes; and
45 WHEREAS, reFerence to the City of Saint Paul in this resolution also includes the Housing and
46 Redevelopment Authority of the City of Saint Paul, Minnesota.
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48 NOW, THEREFORE, BE IT RESOLVED, that consistent with the City's role as a market participant in
49 purchasing construction services, the City of Saint Paul may require contractors and subcontractors to
50 abide by a PLA as a condition of working on a particular building construction, parks or public works
51 proj ect under the following terms and conditions.
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1. The City shall consider the use of a PLA on all building consriuction, parks or public works
projects involving a City contract with $250,000.00 or more in city money. This requirement does not
apply if the City is a party to a joint powers agreement with another public entity for the project. Any
department or agency of the City that plans to undertake such a project shall timely submit the matter to the
City Council for a decision on whether to use a PLA far the particular proj ect. Any decision on the use of a
PLA must be made before City approval of the project. Interested parties shall be given notice of the matter
and allowed ten days to respond. The City may use a PLA when it determines, in the exercise of its
discretion, that doing so will further its interests in promoting timely, cost-e£fective, and quality
construction with minimal delays and disruptions.
2. Upon request by the Administration, a Councilperson ar an interested party, the City
Council will hold a public hearing at which interested parties may participate. The hearing will be held on
two weeks' notice in the customary manner that notices of City Council meetings are published. At this
hearing evidence may be presented as to the City's need for and interest in a PLA with respect to the
particular project.
3. The City, when considering whether to use a PLA on a particulaz project, shall undertake an
70 evaluation to determine whether doing so would advance its interests as project owner. Relevant criteria
71 for considering whether to use a PLA on a particular project include, but are not limited to, the following:
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a. Size of the job;
b. Cost of the job;
c. Duration of the job;
d. Impact of any delays;
e. Amount of construction projects in the area competing for skilled workers;
£ The number of local collecrive bargaining agreements ("CBAs") that will expire
during the term of the project;
g. Number of crafts and CBAs in the geo�aphic area;
h. Whether a majority of successful bidders on prior projects were union employers;
i. Record of good quality and efficient conshuction under previous PLAs; and
j. Impact on achieving vendar outreach program and warkforce goals.
4. The City may retain a project manager, consultant or assign staff to prepare a report
analyzing whether it would serve the City's interests to use a PLA. If the City decides, based on its
evaluation, to use a PLA on a particular project it shall set forth the basis for its decision in writing. The
a�-�gy
88 City's findings should analyze the particular benefits that a PLA could reasonably be expected to provide
89 to the City as project owner.
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91 5. When the City has deternuned to use a PLA on a particulaz project, the City shall require its
92 general contractar to negotiate and enter into a PLA for the particular project.
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6. When the City has determined to require a PLA on a particular project, the City shall
require execurion of a PLA by the general contractor in the bid specifications and in all relevant bid
documents. The bid specifications shall make clear that bidding is open to union and nonunion
contractors, provided that a contractor that is a successful bidder a� to become a party to and comply
with the PLA while working on the project.
Any such PLA used by the City shall meet the following criteria.
a. The PLA shall be made binding on all contractars and subcontractors working on the
site, and shall establish certain uniform job conditions;
b. The PLA shall set forth binding procedures for resolving any jurisdictional and labor
disputes arising during the constnzction process including disputes pertaining to
alleged violations of the PLA and in particular alleged violations of the prohibition
against strikes, lock-outs, handbilling, leafletting, or other similar disruptive job
actions;
a The PLA shall contain guarantees against strikes, lock-outs, handbilling, leafletting,
and any other similar job actions that would disrupt construction;
d. The PLA shall provide that there shall be no discrimination against any employee or
applicant for employment because of his or her membership or non-membership in a
union or based on race, creed, color, sex, age, religion, or national origin of such
employee or applicant. For all employees not presently members of a union at the
outset of the Project, becoming and remaining a member of the union shall not be a
requirement for employment under the PLA. However, any employee who does not
become a member of the Union shall be required to pay the appropriate
representation fee, not to exceed dues or fees paid by union members. The PLA shall
provide for hiring from the applicable union hiring halls to ensure a steady supply of
highly skilled and trained craft workers. The PLA shall provide that there shall be no
discrimination in refenals or employment against any employee or applicant for
employment because of his or her membership or non-membership in a union or
based on race, creed, color, sex, age, religion or national origin of such employee or
applicant; and
e. The PLA shall not require any contractor to be or become a party to a collective
bargaining agreement on any other construction project in order to qualify to work
under a PLA implemented for a particular project.
f. The PLA shall require parties to make a demonstrable effort to achieving the
following objectives:
(i) Workforce diversity reflective of the region in parinership with capacity
strengthening employment programs such as Minnesota Build, Apprenticeship Opporiunities Program, or
any other local, state, or national efforts that are recognized for achieving workforce diversity;
(ii) Maximum use of local businesses;
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(iii}
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Maximum use of sma11 businesses; and
MaYimum use of minority, women, and low income persons and businesses
in a manner consistent with applicable federal, state, and local laws,
rewlations, policies and �ant requirements.
g. The Department of Human Rights and Equal Economic Qpportunity shall collect
and analyze data on the effectiveness of PLAs on achieving the goals and objectives
stated in this Resolution and report its findings and recommendations to the Mayor
within svc months following the passage of this Resolution and annually thereafter.
BE IT FURTHER RESOLVED, that City staff of the Department of Human Rights and Equal Economic
Opportunity notify potentially interested parties, including but not limited to, Asian American Chamber of
Commerce, Asian American Contractors Association, Associated Builders and Contractors, Associated
General Contractors of Minnesota, Association of Women Contractors, Hispanic Chamber of Commerce
of Minnesota, Minnesota American Indian Chamber of Commerce, National Association of Minority
Contractors Upper Midwest (Saint Paul and Minneapolis), National Black Chamber of Commerce, Saint
Paul Building and Construction Trades Council, Saint Paul Area Labor Federation, USPan Asian American
Chamber of Commerce, of this resolution and request that they indicate whether or not they wish to be
notified of projects with $250,000 or znore in City/HRA money.
Bostrom
Carter
H32IiS
Adopted by Council: Date
Requested by Department of:
✓ —���W h �ll
'� B y�.�cJ�-O✓�iltR�eScl� �
'� Approved by the Office of Falancial Services
✓
✓
Adoption Certified by Counci�Secretary
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By: `,5 . � l.r _. .
Appxo y y : ' ate � �
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By:
Approved C' 9 e
By:
Approved by Mayor foi S�bmission t�Council
BY � s�J/I P .thn�i
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
, M � Ma o�s �Office ����� � Date Initiated: j �� �" /
Y , 2�-�Y-o9 ; Green Sheet NO: 3070817
j ConWct Person & Phone:
'�, Kris Fredson
266-8534
, Must Be on Council Agenda by (Date):
Doc. Type: RESOLUTION
� E-DocumentRequired: Y
Document Contact:
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; Assign '
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Total # of Signature Pages _(Clip All Lowtions for Signature)
Council Resolution establishing a Project Labor Agreement policy requiring the City, upon request by the Administration, a
Councilperson or an interested party, to consider the use of a PLA on all building and construc6on, parks or public works projects
involving a contract over $250,000 or more in City money.
Recommendations: Approve (A) or Reject (R):
Planning Commission
CB Committee
Civil Service Commission
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Personal Service Contracts Must Answer 1he Following Questions:
1. Has this person/firm ever worked under a contract tor this departmeni?
Yes No
2. Has this person�rm ever been a city employee?
Yes No
3. Does this person/firm possess a skill not normally possessed by any
current ciry employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet.
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
Advantages If Approved:
Disadvantages If Approved:
Disadvantages If Not Approved:
Total Amount of
Trensaction:
Funding Source:
Fi nancial Information:
(Explain)
CostlRevenue Budgeted:
Activity Number:
May 27, 2009 12:47 PM Page 1