Title
Authorizing and approving the non-use of a Project Labor Agreement (PLA) on SKD Auto Tek LLC’s Neighborhood STAR project located at 80 Cottage Ave.
Body
WHEREAS, the Saint Paul City Council adopted a policy on the use of Project Labor Agreements (“PLA”) pursuant to Council File #09-584 for projects involving $250,000 or more of City money;
WHEREAS, SKD Auto Tek LLC, a small, minority-owned business with less than 20 employees, will construct a new auto shop facility located at 80 Cottage Ave. (“Project”);
WHEREAS, on July 8, 2026, through RES 26-1077, the Mayor and City Council awarded $300,000.00 through the Neighborhood STAR program to help with the construction work of the Project;
WHEREAS, Planning and Economic Development staff sent written “Notice and Request for Recommendation on the Use of a PLA” to interested parties on August 28, 2026 with only one response received from the Saint Paul Building and Construction Trades Council;
WHEREAS, the Saint Paul Building and Construction Trades Council responded stating “Dollar amount, multi-craft, length of project” as reasons they recommend a PLA for projects identified herein; and
WHEREAS, in considering criteria for evaluating a PLA as outlined in Council File #09-584, a PLA will not benefit the Project for the following reason: (1) the Grantee is a small business with limited administrative capacity and lacks the administrative infrastructure necessary to manage the administrative burden the use of a PLA will create; (2) the substantial increase in overall construction costs that would result from the use of a PLA; and (3) the time required to negotiate, execute, and incorporate PLA terms into the Project’s contracting and bidding documents would result in additional delays to the Project’s construction schedule; now, therefore be it,
RESOLVED, that the City Council of the City of Saint Paul that the City Council hereby authorizes and approves the non-use of a PLA on SKD Auto Tek LLC’s Neighborhood STAR funded project located at 80 Cottage Ave.