07-054-O

ORDINANCE NO. __________


AN ORDINANCE CREATING A NEW SECTION 2-29 OF THE DULUTH CITY CODE, 1959, AS AMENDED, REQUIRING PROJECT LABOR AGREEMENT FOR CITY PROJECTS.

BY COUNCILOR KRAUSE:

The city of Duluth does ordain:

     Section 1. That the Duluth City Code, 1959, as amended, be amended by adding a new Section 2-29 to Chapter 2, Article IV, to read as follows:

Sec. 2-29. Project labor agreements.

     (a)  Policy. The city, as a purchaser of construction services, has a compelling interest in ensuring that city construction contracts proceed in a timely, cost-effective manner with the highest degree of quality and with minimal delays and disruptions. City contracts should be performed with the highest degree of safety for workers and the public, and in a manner that provides meaningful training and employment opportunities for residents. Throughout the state and country, public and private construction owners regularly utilize and require project labor agreements for billions of dollars worth of construction each year. St. Louis County is successfully using project labor agreements on county construction contracts. Project labor agreements that establish uniform terms and conditions of employment for the contractors and other parties working on a project have been shown to provide an effective mechanism for construction management because they allow project owners to:

           (1)  Predict their labor costs and requirements, and, therefore, more accurately estimate actual total project costs;

           (2)  Promote cost-efficient, timely and safe construction project delivery, by providing access to a reliable supply of properly trained and skilled construction craft personnel for all aspects of the project;

           (3)  Assure greater productivity and workmanship quality from construction craft personnel, thereby yielding high quality, cost-efficient projects, while also reducing maintenance and repair costs over the life of the project;

           (4)  Integrate work schedules and standardize work rules for the project to provide a well-coordinated, efficiently functioning construction worksite that will minimize delays, promote quality, and maintain project safety; and

           (5)  Assure that construction will proceed without interruption from staffing shortages, high employee turnover, safety incidents, and labor disputes by providing reliable project staffing, contractual guarantees against work stoppages and mutually binding procedures for resolving disputes;

     (b)  Project labor agreement required. A project labor agreement, in substantially the form adopted by resolution of the council from time to time and kept by the city clerk as a public document, shall be required to be used on each city construction project, as project is defined in Section 2-25, with a total project cost of $150,000 or more. Any project labor agreement entered into by the city shall be made binding on all contractors and subcontractors working on the project. The city shall implement the project labor agreement by requiring adherence to the agreement in the bid specifications in all relevant bid documents. No contractor shall be required to be or become a party to a collective bargaining agreement on any other construction project in order to qualify to work under a project labor agreement implemented for a particular city project.

     Section 2. That this ordinance shall take effect 30 days after its passage and publication.


STATEMENT OF PURPOSE:  This ordinance would require city contractors to enter into an agreement that requires certain terms and conditions of employment be met, including wages, benefits, no strike or lockout, union recognition, grievances.