DISPUTE ON PREVAILING WAGE ISSUE AT TOWERS CLEARED UP

A prevailing-wage dispute over the Towers renovation project has been resolved, with the Missouri Division of Labor Standards issuing a wage determination that will add an estimated $10,000 to $15,000 to the construction cost.

Ken Dobbins, Southeast Missouri State University's executive vice president, said the exact cost is still being finalized. But he added, "It's not significant."

The dispute, which surfaced in January, centered around the university's decision to scrap the original plans for two new chilled-water-system units in favor of a single, larger chiller as part of the renovation of Towers West and North residence halls. The change resulted in an added cost of $1.5 million to the renovation project being managed by Sverdrup Corp. of St. Louis.

Officials of the university and Sverdrup Corp. argued that there was no need for a separate wage determination because it involved simply a change in the $13 million project and wasn't a completely new construction job.

But a labor union official disagreed. David Zimmermann, business representative of Sheet Metal Workers Local 36 in St. Louis and president of the Southeast Missouri Building and Construction Trades Council, filed a complaint.

He argued that the chiller work should have been treated as separate from the overall renovation project. He contended the university should have requested a separate prevailing wage determination for the chiller project and then have sought bids for that work.

Colleen Baker, the director of the Missouri Division of Labor Standards, said in February that the change in the planned improvements to the cooling system were significant. She requested that Southeast "comply with normal prevailing wage procedures."

In response to the Labor Standards' request, the university applied for a separate prevailing wage determination. Dobbins said.

The state agency issued its determination on Feb. 24. No objections were raised by labor unions or other parties, and the wage determination became final on March 28, Baker said.

"They have complied with getting a determination," she said.

Dobbins said Southeast has always tried to comply with prevailing-wage regulations. "We want to make sure that we do what's required to comply with the (Labor Standards) division and Missouri statutes and we have always wanted to do that," he said.

Dobbins said university officials appreciated the fact that the state agency "expedited the wage determination request."

Dobbins said the added cost is relatively small because "a lot of that (chiller) project is direct material so wages aren't an issue."

The dispute, he said, never held up work on the chilled water system. Even though a wage determination was issued, the university did not have to seek separate bids for that work, Dobbins said.

"I am glad that it is a minimal increase and that the project proceeded and it will not delay the opening of the west Towers," he noted.

The 575-ton chilled water plant with cooling towers will serve Towers West and North and provide a needed backup for the 25-year-old existing chiller that serves the other two high-rise buildings in the Towers complex.

Renovation of Towers West, including the chiller work, should be completed by May 1, Dobbins said. After that, work will begin on renovating Towers North.

Dobbins said it's important to have the cooling system in operation because Towers West will be housing students during summer orientation.