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Affton School District Project Labor Agreement Early Childhood Education Center Project. Public Hearing September 20, 2011. Section 34.216, Missouri Revised Statutes, sets forth conditions by which a Missouri political subdivision may enter into a union-only project labor agreement (PLA).
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Affton School DistrictProject Labor AgreementEarly Childhood Education Center Project Public Hearing September 20, 2011
Section 34.216, Missouri Revised Statutes, sets forth conditions by which a Missouri political subdivision may enter into a union-only project labor agreement (PLA) Specifically, Affton School District must: • Publish an “Intent to Enter Into a PLA” • Conduct a public hearing prior to a decision • Publish a “Determination to Enter Into a PLA”
Affton School Districthas not employed the use of a PLAin the past. Issues encountered without PLA: • Prevailing wage violations • OSHA violations and fines • Sub-standard workmanship • Code violations • Jurisdictional disputes
PROJECT:Early Childhood Education Center Description: • Educational facilities for pre-K students • Renovation of warehouse building • Located at 9832 Reavis Road • Building size: 20,000 sq ft • Construction cost: $2.6M
PROJECT:Early Childhood Education Center Background Facts: • Funded by bond proceeds • Design work by KRJ Architects • Construction bid solicitation – Oct/Nov • Bid solicitation to General Contractors • Estimated completion June 2012
PROJECT:Early Childhood Education Center Facility Facts: • 7 classrooms + a project classroom • Multi-purpose room + conference room • Rooms for PT, OT, PAT, offices, nurse, workroom • Warming kitchen & dining area • Outdoor learning and play areas
PLA Statutory Standards Rational Basis: • Whether a PLA advances the interests of the government and its citizens • Whether the PLA is appropriate, considering the complexity, size, cost impact and need for project efficiency • Whether the PLA affects the availability of a qualified work force • Whether the scope of the PLA has a business justification for the project
Whether a PLA advances the interests of the government and its citizens: The PLA will: • Provide a reliable, stable supply of trained and skilled construction craft labor • Promote timely, cost-effective project delivery • Help the project reach completion on time and within budget • Minimize the potential for labor disruptions such as strikes, slow-downs, work stoppages, and jurisdictional disputes
Whether the PLA is appropriate, considering the complexity, size, cost impact and need for project efficiency: • Considering the complexity, size, cost impact, and need for efficiency on the $2.6M project, the PLA will not adversely impact costs since prevailing wages are required to be paid on the project • Since craft labor is a major, critical component of any construction project, the quality, productivity and reliability of the craft labor workforce on the project will have a direct and substantial impact on the success of the project
Whether the PLA is appropriate, considering the complexity, size, cost impact and need for project efficiency: (Continuing) • Skilled, trained workers are better able to build a project in accordance with plans and specifications, generally produce quality workmanship, work safely and productively and more cost-effective and cost-efficient than works that lack formal training • A PLA eliminates the potential for a two gate construction entry system on this project
Whether the PLA affects the availability of a qualified work force: A PLA: • Impacts the availability of a qualified work force in that securing a supply of local craft labor that is less susceptible to disruptions is a reliable approach to staffing the construction project and delivering the project on time • Allows the Affton School District to substantially limit risks of schedule delays, deficient workmanship, incidents resulting from unsafe actions and related problems caused by an insufficient number of skilled and qualified workers
Whether the scope of the PLA has a business justification for the project: The scope of the PLA: • Has a business justification for the project as bid in that the use of a Project Labor Agreement secures access to a highly skilled workforce; promotes safe, timely, cost-effective completion of construction projects; avoids prevailing wage violations, and results in economic benefits to project owners and other parties responsible for or dependent upon such projects
Sampling of Reportsand Studies Regarding Use of Project Labor Agreements • Project Labor Agreements in New York State: In the Public Interest, Fred B. Kotler, J.D., Cornell University (2009) • Building Better: A Look at Best Practices for Design of Project Labor Agreements, Economic Policy Institute, Dale Belman, Ph.D. and Matthew Bodah M. Bodah, Ph.D. (2010) • Project Labor Agreements: Reports from Professors of Michigan State, Rhode Island, Utah, ELECTRI International, Dale Belman, Ph.D,, Matthew M. Bodah, Ph.D. and Peter Philips, Ph.D. (2007) • Project Labor Agreements in Iowa:An Important Tool for Managing Complex Public Construction Projects, Ralph Scharnau, Ph.D. and Michael F. Sheehan, Ph.D., J.D. (2004)
Public Hearing Regarding PLA on Early Childhood Education Center Project Hearing Summary: • This hearing meets the requirements of Missouri Revised Statutes Section 34.216 • Board must make a determination to enter or not to enter into a PLA • By statute, the administration will publish the determination of the Board within 30 days of this hearing