Under heavy pressure from a room full of local union
laborers, New Castle County Council on Tuesday deferred loosening county
bidding rules for those looking to win expensive public construction contracts.
The proposal's intent was to loosen requirements
mandating firms conducting expensive public projects have apprentices. It was
pitched as a way to save the county millions in construction costs and lead to
more local work being done by Delaware firms.
But the dozens of union officials and workers who packed
the usually quiet council chambers for several hours of debate said the change
would punish firms who take on the responsibility of training workers and lead
to shoddy craftsmanship on public projects.
"This is about the public safety," said Joe
Williams, the business agent for a local elevator construction union. "For
my trade alone, you are asking for problems if you are allowing someone to work
on your elevators that are not trained."
For the past nine years, New Castle County has required
contractors who bid on public construction contracts larger than $100,000 to
have apprentices through a state-approved or organized labor programs or
guarantee they will be the time the contract begins.
Construction companies partner with a state program to
train apprentices. Unions also administer apprenticeship programs that train
workers through their member companies.
The changed debated Tuesday would raise the threshold for
jobs that require apprentices from $100,000 for contractors and $50,000 for
subcontractors to $1 million for contractors and $500,000 for subcontractors.
The current law requires apprentices for each of the
trades involved in the contract. The proposed change only requires an
apprentice for one facet of the qualifying job. It also allowed for county
officials to waive the requirement if no bidders meet the criteria.
The apprenticeship requirement was created in 2008 along
with a suite of other licensing and disclosure requirements for potential
contractors. The law was pitched as a way for the county to do its part of
training low skilled workers with the millions of dollars worth of public
contracts executed each year.
But those supporting the change claim the rule has led to
more work being done by out-of-state firms and raised costs by decreased
bidding competition for large public projects.
At the heart of the complaint is that smaller
construction firms are often not fit for apprenticeship programs, which are not
available in-state for all the construction trades classified by the state's
prevailing wage law.
Bob Field, owner of Wilmington construction firm Eastern
Highway Specialists, said his company participates in state apprenticeships and
also provides other training opportunities for his employees. But because some
in his workforce have already completed apprenticeships and he does not have
apprentices in other positions, he is cut out.
"I'm born and raised in Delaware, have an office in
the city, have Delaware employees and I can't bid in New Castle County,"
Field said. "Someone needs to explain to me why that makes sense.
Something needs to change."
Councilman Penrose Hollins, who sponsored the rule
change, said the law has not increased apprenticeships and the change would not
decrease them.
"The (law) only created an advantage to large
businesses that already provide apprenticeships," Hollins said. "It
is that advantage that has resulted in a disadvantage for most small companies
where it is not practical to afford apprenticeships. That includes almost all
minority companies."
County Executive Matt Meyer's administration pushed for
the changes and conducted a study comparing construction bidding trends for
public projects before and after the apprenticeship requirement came into
place, finding that contracts worth some $31 million have gone to out-of-state
firms at least partially due to the apprenticeship requirement.
In addition, since the requirement became law, 35 percent
of county construction spending went to in-state contractors. That figure was
50 percent in the eight years before the law passed, according to Matt Rosen, a
senior adviser in the Meyer administration.
State government has no such requirement and
approximately 80 percent of its contracting work goes to in-state firms.
Councilman Tim Sheldon argued much of that $31 million
was actually due to specialty work that no firm in the state can do.
"The people in the industry were not contacted on both
sides of the street," Sheldon said criticizing the administration's
figures.
The county has received 25 percent fewer bids than before
the requirement became law, Rosen argued. Meyer's administration estimates the
lack of competition is costing between $2 million and $5 million annually.
The debate over the issue evolved into one about minority
participation working on county projects. Councilman Jea Street said the rules
haven't helped put more minorities to work on county projects, so he didn't
mind raising the threshold.
"This has made a bad situation worse," Street
said. "Y'all can argue whatever you want."
As an example using administration figures, Street noted
less than 1 percent of the county's current contractors are black-owned
businesses. That figure was 2.6 percent before the apprenticeship law came into
existence.
In another example, Hollins pointed to the ongoing
construction of the $31 million Route 9 library where 58 percent of builders'
wages are going to out-of-state workers.
At one point, the debate devolved into sniping between
council members and Council President Karen Hartley-Nagle. From the council
floor, Hartley-Nagle accused Meyer of threatening to cut public projects if she
didn't vote for the ordinance, a claim he denied.
Councilman George Smiley asked her to stick to the
subject of the debate. As Hartley-Nagle told him he was out of order and
suggested he could be booted from the meeting, Smiley said she had no
credibility with him and that voters made a mistake by electing her to the
position last year.
Later, after the debate, Councilman Bob Weiner shouted
his displeasure with how Hartley-Nagle presided over the tense discussion of
the apprenticeship ordinance as Hartley-Nagle banged the gavel telling him he
was out of order.
James Maravelias, president of the Delaware Building
Construction Trades Council that represents 24 affiliated local unions, said
the rules are not designed to boost minority workforce and that the County
Council should take other steps to ensure local and minority workforce.
"It is disgusting that we have to play the white
against the black," Maravelias said.
Sheldon argued part of the reason many businesses don't
bid is actually because the apprenticeship program isn't enforced by county
regulators, a point administration officials dispute.
Sheldon said some businesses that go through the expense
and hoops of having apprentices avoid the expense of bidding because they know
they will be undercut by businesses who don't and will get away with it because
the rules are not enforced.
"Minority participation would be higher if you did
enforce the law," said Councilman Ken Woods, echoing Sheldon.
Sheldon said the threshold does need to be changed, but
not in such a drastic way. Councilman Bill Bell said the legislation needs more
input from construction professionals.
The issue was ultimately tabled and Hollins said he
intends to amend the legislation and bring it back for council consideration in
two months.
Source: Delaware
Online
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