HomeMy WebLinkAboutResolution No. 542-09 • RESOLUTION NO. —09I
WHEREAS, the City of Rochester finds that project labor agreements with unions
representing experienced and skilled construction workers have generally proven to be of
economic benefit to property owners, including states and their subdivisions and state and
local governmental agencies, for their major construction, alteration, renovation, demolition,
reconstruction or repair projects, or.for closely-interrelated series of projects particularly those
that extend for a substantial period of time, involve a substantial number of contractors and
subcontractors and/or a substantial number of trades and craft workers, have a substantial
dollar value, and/or have particular construction requirements that must be met; and,
WHEREAS, project labor agreements with such unions facilitate the timely and efficient
completion of such projects by:
• (a) making available a ready and adequate supply of highly trained and skilled craft
workers;
(b) permitting public owners and contractors to accurately determine project labor
costs at the outset and to establish working conditions for all construction crafts
for the duration of the project;
(c) allowing for the negotiation of specialized terms and conditions which, because
of the particular circumstances relating to a specific project, may be required for
the effective and expeditious construction of the project;
(d) providing a negotiated commitment which is a legally enforceable means of
assuring labor stability and labor peace over the life of the project;
(e) avoiding work stoppage following expiration of a collective bargaining agreement
• between a union and an employer performing work on the project; and
i-, •
• (f) facilitating equal employment opportunities on the project; and,
WHEREAS, previous City of Rochester projects of similar size have been performed by .
both union and non-union contractors, and have resulted in actual or potential conflicts
between workers with resultant added administrative costs and project delays; and, .
WHEREAS, in view of the benefits described above, the use of such project labor
agreements generally results in cost savings for the construction of the project; and,
WHEREAS, the development of the Mayo Civic Center Expansion Project at the earliest
possible date and no later than a date certain is in the best interests of the public and the City
of Rochester in order to fulfill the economic development purpose of the project as more fully
outlined in the Mayo Civic Center Director's November 12, 2009, letter, a copy of which is
attached hereto and incorporated herein; and,
• WHEREAS, the City of Rochester finds the use of such a project labor agreement for
construction of the Mayo Civic Center is in the necessary and best interests of the public and
the City of Rochester in order to meet the construction time schedules for the project; to
ensure that the project will be completed with highly qualified workers; to ensure that the
project will meet the highest standards of safety and quality; to ensure that there are peaceful,
orderly, and mutually binding procedures for resolving labor issues; to avoid labor disputes or
conflicts, and to promote overall stability throughout the duration of the project by providing
legally enforceable guarantees that the project will be carried out in an orderly and timely
manner without strikes, lockouts, or slowdowns, all of which allow the City of Rochester to
more accurately predict the cost, and to reduce the cost, of the Mayo Civic Center Expansion
Project.
0
• NOW, THEREFORE, BE IT RESOLVED by the City of Rochester that:
1. For all the foregoing reasons, the City of Rochester designates itself as the
project manager for the Mayo Civic Center Expansion Project.
2. The City of Rochester is authorized and directed to negotiate a mutually-
acceptable project labor agreement.with the appropriate union, group or unions
or trades council, containing the following minimum requirements:
(a) All contractors and subcontractors on the project shall agree to abide by
the terms and conditions of the project labor agreement for this project;
(b) There shall be no strikes; slowdowns or picketing, and no lockouts, during
the project;
(c) Unresolved disputes relating to the terms of the project labor agreement,
• including jurisdictional disputes, shall be resolved by binding arbitration
without resort to strikes, slowdowns, picketing, or lockouts; and
(d) All project work shall conform to the goals for minority business enterprise
and women business enterprise participation in construction contractors
established by applicable provisions of law.
3. The City of Rochester shall, upon the successful negotiation of said project labor
agreement, submit that agreement to the City of Rochester Common Council for
its review and approval.
4. The project labor agreement, if approved, including the requirement that all
successful bidders, and any and all levels of subcontractors, as a condition of
being awarded a contract or subcontract, will agree to abide by the terms of said
• project labor agreement, by and between the City of Rochester and the
• appropriate trades council, and will be bound by the provisions of that
agreement, with respect to the performance of all work on this project, in the
same manner as any other provisions the contract shall be made a part of the bid
specifications for the project.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS ZJsi DAY OF TEGG6�W— , 2009.
PR SIDENT OF S ID COMMON COUNCIL
ATTEST:
CIV CLERK
APPROVED THIS DAY OF 706eEM-aV, , 2009.
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
Res05/Resolu.PLA MCCExpan
•
_ ..,
30 Civic Center Drive SE Rochester,MN 55904-3701 1 V C E N T E R
•
November 12,2009
Mayor Ardell Brede and City of Rochester Common Council
City of Rochester
City Hall
20141h Street S.E.
Rochester, MN 55904
Dear Mayor Brede:
The architectural and design planning process for the proposed expansion of the Mayo Civic Center is
well underway. Construction documents are on schedule and will be completed in May 2010. As the
plans have come together, it is apparent the construction schedule is vital to the overall success of the
project. Because of a unique set of circumstances, it is critical that this project is completed on time and
within budget. Consideration of a project labor agreement resolution could facilitate the process and
create an improved environment for success. Reasoning is as follows:
• • The Civic Center Expansion will be the largest single building project involving State bonding
funds the City of Rochester has undertaken. The funds available are limited and any project
delay will increase costs.
• The estimated annual increase in economic impact for the Rochester and Southeast Minnesota
Area due to this expansion is conservatively estimated at$44 million. A delay in completion of
construction and its impact on contracted events at the MCC for even one month would equal
an economic loss of$3.6 million per month for the Rochester and Southeast Minnesota Area
economy.
• The Mayo Civic Center Expansion will be considered shovel-ready in May 2010. If State bonding
funds are approved by the 2010 Legislature, construction could begin as early as fall 2010.
Completion of the new and remodeled facilities will require a 27 month construction phase with
substantial completion in November 2012. Any project delay could result in the City of
Rochester Mayo Civic Center losing revenue to from facility rental,equipment rental and
concession revenue of up to $120,000-$150,000 per month.
• New construction will connect with 23 year old facilities(Arena and Grand Lobby) on the east
side and on the north side with the 14 year old skyway and 70 year old Presentation Hall. These
connections present many logistical challenges but the Mayo Civic intends to remain fully
operational during the construction and remodeling phases. Close cooperation between the
Civic Center staff,the general contractor and all subcontractors is vital as construction occurs
and the Civic Center maintains operations. Maintaining acceptable access for patrons at various
www,mayociyiccenter.com I info@mayociviccenter.com I Phone 507.328.2220 Toll-Free 800.422.2199 1 Fax 507.328.2221
•
and multiple events will be challenging. Those problems will be magnified if picketing due to
labor issues occurs.
• Conventions and major events are frequently booked two or more years ahead. Potential users
have been informed of the proposed expansion and there is significant interest. Once
construction funding is in place the combined staffs of the Mayo Civic Center and Convention
Bureau will begin booking the new facilities immediately using the targeted construction
completion dates. Any construction or labor related delays would require cancellation of
contracts that are entered into based on the construction completion dates. If we do not have
an assured construction completion date it will impact our ability to book business,and affect
the booking process,potential revenues and the increased area economic impact,the primary
goal of the Civic Center Expansion.
• With the current economy,we anticipate that the summer 2010 bidding climate will.be in the
City's favor and result in bids below the budget. However,any labor related delay or strike
could result in additional expenses and negatively impact any savings gain. We have been
advised that many union contracts will be open for re-negotiation in 2010 and the following
years,creating a concert that labor issues,in the absence of a Project Labor Agreement,could
cause delays for the Expansion project.
• Some MCC users are very sensitive to labor related issues and may elect to cancel their event(s)
or refuse to utilize the MCC in the future rather than cross picket lines. This occurred previously
at the Mayo Civic Center relating to a previous construction project which did not utilize a
project labor agreement. In that instance a Minnesota AFL-CIO Convention cancelled its
convention resulting in lost business and lost economic impact for the community.
It is in the public interest that the project be completed in an expeditious and efficient manner, free of
disruption or delay of any kind. In 1999 the City entered into a project labor agreement to construct the
Mayo Civic Center North Expansion—the Exhibit Hall and North Lobby. A project labor agreement states
there will be no strikes, picketing, work stoppages,slowdowns or other disruptive activities that could
delay the completion of the project. This was successful on the 1999 project and it was completed on
time and under budget. Should the City enter a similar agreement for the Mayo Civic Center Convention
Center Expansion and Remodeling,we should expect the same results.
For reference, attached is a copy of the preliminary construction schedule.
Sincerely,
G�(��7�Ldtst-
Donna Drews
Executive Director
Mayo Civic Center
•