Affton School DistrictProject Labor Agreement

Early Childhood Education Center Project

Public HearingSeptember 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

How The Building Looks Today

The Look Of The Future

How The Building Looks Today

The Look Of The Future

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