4.5. SR 05-19-1997 - Laserfiche WebLink

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ity of iver MEMORANDUM Item #4.5. TO: FROM: DATE: SUBJECT: Mayor & City Council Pat Klaers, Cit~strator May 19, 1997 Liquor Store Attached for your review is a list of the sixteen bid packages (plus three subcontracts) the City Council awarded which shows which firms are union and which are nonunion. Councilmembers may or may not have received calls from union business agents and representatives indicating their displeasure with the city in that the entire project was not a union project. The Council can expect union representatives to be at this City Council meeting to express their unhappiness with the city. Please note that the bid award recommendation for Package #7 - Windows and Store Front - is to a union firm. Construction Manager Mike Parsons of Greystone has advised me that if the ten contracts that were awarded to nonunion firms were actually awarded to the lowest responsible union firm bid, then the project would have been $43,000 higher. This $43,000 additional cost would have added 5 percent to the liquor store project. The city has always awarded building contracts based on the low responsible bidder without regard to union representation. This was the case with the City Hall, Fire Hall expansion, Library expansion, Ice Arena, and Liquor Store. One item of note is that the Ice Arena project required a prevailing wage clause as the city received state funds for this project. The City Hall project was awarded to Bor Son as the General Contractor and Bor Son is a union firm. The City Hall project was picketed and two gates were established toward the end of the project. Additionally, Shaw, the major contractor in the Ice Arena project was also a union operation. As far as I know, the city has never authorized a construction project to be bid out only to union firms. XXelkriver\sys\shrdoc\council\unionlst.doc 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425