Blogger's Note: Allentown City Council has recently adopted a "responsible contractor" ordinance that might actually be irresponsible government. The law, which is sitting on Mayor Tuerk's desk waiting for his signature, limits all city contracts over $100,000 to contractors with Class A apprenticeship programs. Moreover, these programs must have been in existence for several years, This essentially guarantees that the work will be limited to trade unions. Union labor is expensive, I'm told ad high as $85 per hour. This is way beyond a living wage. While the intentions are good, this will limit the number of bidders for city work while driving up cost. Allentown's James Whitney weighs in on this new ordinance.
On February 16, 2022 Allentown City Council passed a Responsible Contractors Ordinance (RCO) in a 4 to 3 vote with CeCe Gerlach, Ed Zucal, Josh Seigel and Natalie Santos all voting in favor of the ordinance. However, Matt Tuerk has indicated that he may be forced to veto the ordinance because parts of the final legislation appear to be copied and pasted from Lehigh County’s Administrative Code, and not revised for application in Allentown. When asked if he agreed that the ordinance was an example of copy and paste legislation, Mayor Tuerk said “It’s so copy and paste that it refers to ‘section 801.2’, which isn’t even a part of the Allentown charter.” He indicated there are other errors in the bill which need to be fixed before it could be implemented in Allentown. “I’m vetoing it” he said.
The portion of the new ordinance that refers to section 801.2 states “Every construction contract shall adhere to the “Required Conditions for all Contracts” outlined in Section 801.2.” When asked what document “section 801.2” is referring to, City Council Member Ed Zucal, who voted for, and co-sponsored the bill, said “I don't know. I'll check that out for you.” Aside from conversations around whether politicians should know what's in the bills they’re voting on, local business owners and some elected officials are also questioning whether now is the right time to be passing legislation that limits the labor pool that Allentown depends on for its public works projects. “I needed time to examine how this ordinance would affect the small business community, but they wouldn't give that to me.”
In the business community, some are concerned that in an already constricted labor environment, limiting the pool of eligible contractors may cause important public works and city infrastructure projects to remain undone and underfunded, or that the Allentown taxpayer could bear the cost of constricted labor supply. Neither potential outcome seems favorable for Allentown’s economy or for residents who are still feeling the effects of a 27% property tax increase levied in 2018.
Community leaders are also concerned how this RCO might affect equitable access to the highly competitive public works bidding process. When asked for comment for this article, Kevin Easterling, CEO of Black Heritage Association of the Lehigh Valley said “This piece of legislation appears to be written for the benefit of the unions, and historically there have been barriers of entry into those unions by both low income contractors as well as companies owned by people of color.”
As Allentown emerges from the pandemic and into an economy strained by inflation, supply chain disruption and a national labor shortage, it remains to be seen how this ordinance could potentially affect Allentown’s small business community, equitable access to the public works bidding process, affordable housing and tax rates. But beyond those issues, another concern is growing within city hall. Three city officials, who agreed to speak only on the condition of anonymity, all said that this feels like a return to the Pawlowski era of Allentown politics. Whether or not that’s true also remains to be seen> Their willingness to speak only with anonymity and the recent resignation of at least one department head implies that perhaps they may be onto something.
24 comments:
Unions spend campaign cash and expect to be paid back by those politicians they bought. Union dough and Citizens United are all the same thing. Voters strongly supported Tuerk, however. Voters strongly support these measures and are apparently willing to absorb the high cost of their choices. God bless America. But it's also why those with the resources to leave choose not to reside in Allentown. Cue the bitching about being racist and wanting to avoid the rotten school district. Don't blame yourselves and your poor electoral decisions for making your city dangerous, expensive, and unappealing. It's racism or something ......
I'm not sure why this article is relevant.
A majority on council approved the measure after the Mayor spoke in favor of the bill, all apparently without any of them reading it. Even if the current bill is vetoed, I'm certain a replacement bill will quickly be prepared and voted on, again with little review or reading, and rubber-stamped in the minimum time needed. Such is the way in Allentown, and in Democrat-dominated cities across the country.
I also don't know why you're attacking the $85 dollar rate for union labor. That's the going rate to buy reliable votes in the city and to cover the things like Election season help (both at the polls on Election Day and canvassing for write-in votes prior) from union leadership and its members, as well as kickbacks to the political campaigns of our politicians.
All that doesn't come cheap. And if you happen to be one of the taxpayers that's paying for all this, well, just shut up and pay the bill.
There is a cost to living in a democrat-run utopia, and this is part of it.
In case you missed it, the Morning Call online has an article about City Council tabling a vote on using 2.7 million federal American Rescue Plan money (or covid-relief funds) for the Little Lehigh Public Housing project. Apparently, the funding was tabled not because of the project itself, but because of the lack of a PROCESS for awarding the money.
Not sure what else council is looking at, but the Morning Call reports that the $2.7 million being requested is part of the larger $26 million project to demolish 56 apartment units and rebuild 50 new ones. The mayor is urging council to act quickly, though council seems concerned about having an applicant jump to the front of the line for this new trough of government money.
Missing from the article is that all of this is our money, or that if you take the $26 million cost of the project and divide it by the 50 apartment units it will build, you come up to a COST OF $520,000 PER APARTMENT UNIT!
I'm sure that's at least partly because of the high union wages built into the cost of the project, as well as the related graft and kickbacks to politicians.
I'm not sure, but I'm guessing that most taxpayers in Allentown aren't living in $520,000 homes, much less $520,000 apartment units, but they're the ones that will ultimately be paying for this.
If I were on city council, I'd be less concerned about process, and more concerned about the actual result of the laws they pass.
It's not so much the union preference (though that's bad enough), it's the fact that, in PA, these are soviet-style, forced-membership unions. If membership were voluntary as in Right-to-Work states, this wouldn't be *as* blatant a mugging of Allentonians.
We need to watch closely whether leftist extremist Matt Tuerk actually steps up to the plate and vetoes it. Given the closely knit cabal of Tuerk and the many leftist extremists on Council, it is difficult to believe this would have come to a vote and passed without Tuerk's tacit approval.
Likely outcome? Tuerk makes a great show of vetoing it, minor cosmetic changes are made, it comes to a vote a second time, and Tuerk gets behind it. Watch...
"Three city officials, who agreed to speak only on the condition of anonymity, all said that this feels like a return to the Pawlowski era of Allentown politics."
The Pawlowski era of Allentown politics never ended.
There was no accountability for ANYONE in City Hall that was part of the culture of corruption beyond those few that were actually charged by the FBI. There were surely many others who were complicit in what happened over that decade, but for whatever reason weren't formally charged. So the corrupt machine remains in place.
I don't see that changing under the new mayor, who was put into the position by the same group of supporters that kept Pawlowski in power.
Expect the "responsible contractor" to be the first of many paybacks to those supporters, and there will be many more. And all to be paid for by the taxpayers.
The RCO is a favor to the unions to squeeze out merit shops from bidding. It is written and pushed by a Washington DC law firm that advertises itself as a leading national union lobbyist firm. One of its attorneys was hired to defend Northampton County in the federal case challenging its RCO. Locally it is pushed by representatives who are owned by the unions and are told what to do and how to do it. They lie when they say it has nothing to do with helping unions. In operation, it removes quality contractors from the process, including many who have excellent long term contracting relationships with the municipality based on work performed on time and within budget with highly qualified labor. Eliminating these contractors results in some jobs receiving no bids and others costing much more. Bottom line: it is a major tax increase wrapped in the misleading title of Responsible Contracting all to serve union labor and eliminate the competition. I hope Mayor Tuerk gets wise to the realities and vetoes the ordinance.
I have no problems with requiring contractors to have apprenticeship programs . I also support the use of union labor, but with caps on the hourly rates paid. Allentown has the lowest incomes in the lehigh Valley and they should not be forced to pay exorbitant wages well beyond the ability to pay. Living wage? Yes. But this is too much for low-income city residents.
Bernie, don't drink the Kool-Aid. If a payoff to the unions must happen, look nationally and you will find that bid credit for having an apprenticeship program is the balanced solution. Competitive bidding is the control on high wages. Statutory prevailing wage assures living wage without the need for further controls. Merit contractors will tell you that public bidding is already overly cumbersome, which understandably protects the public interest. But making the process more onerous and costly by requiring apprentice labor just to favor 10% of the market only assures fewer highly qualified contractors will be willing to participate. That is not in the taxpayers' best interest.
What's the CAP Bernie?
And why $500,000 homes for low income inhabitants?
They should ask the purchasing directors in Norco and Lehigh what their experience has been with the RCO's. Fewer bidders or none on projects, leading to re-bidding or waiving the RCO to get bidders. Definitely decreases competition and raises the project costs. Terrible legislation.
Anon 829am hit the Question of the Day - who in their right mind would support a project to build new apartments that cost $520k per unit to build? Private sector - $175k-ish per unit.
Remove demolition costs on the old units, so say that drops construction costs to $450k/unit. Still more than double private sector costs.
Differences - union labor, project labor agreements, and politicians spending someone else's money so it doesn't matter.
Quality of construction? No different.
Total insanity.
Sounds a lot like the copy and past Ethics Ordinance Olga and Paige tried to push through in Bethlehem a few years ago. Lazy politicians trying to do things without legal counsel.
Politicians are the scum of the earth.
"Never attribute to malice that which can be adequately explained by stupidity." That comes to mind re: that last paragraph on Pawlowski.
Doesn't Northampton County already have a very similar ordinance?
I concur that Turek will veto the bill the first time and probably pass it the second time after the funds are adequately realigned to fill the appropriate pockets.
Pawlowski was just the tip of the iceberg. He got hung out to dry so others would not be touched or our precious little Lehigh valley would have seen upheaval like it has never seen with numerous being indicted and most likely jailed if other from outside the are were
NO one that I am ever aware of has fully investigated the NIZ in Allentown, the organizations which managed it, the tax stamp organization which is one of the largest contributors to the NIZ, and there real estate developers/ investors in Allentown and numerous surrounding areas which made land grabs. To many are involved in the local region for us to ever know the actual facts.
Just listened to President Trump on C-Pac---Bernie he will be back because we need him and you and your left-wing idiots will be put out forever which is good for our country--you people had your chance and look what you did in one year to this country.
Grace Smith tried to slip this garbage into Bethlehem last year until the rest of their council sniffed out the stink. She's a union puppet. Her front row seats at pro sporting events with the bosses and campaign contributions makes you wonder - maybe a grand jury should take a look. Definitely Pawlowski-like behavior. Citizens get screwed. Gutter politics.
Following on 9:56 am, taxpayers may wish to consider GCS was pushing the tax increasing-competition eliminating-union favoring RCO on Bethlehem after receiving $8000 from the unions in April 2021. See her PA Campaign Finance Report May 3, 2021 available on the city website.
Comrade 7:04 and with Trump back we will be within a dictatorship just as bad as Sadam Hussein's sons would create. All monies land and everything else will then belong to High exalted supreme leader. People like you will in the short term be in favor until you say one negative thing then he will have you tortured an executed for not loving him.
Quit following a false idol. You may not like Biden and the democrats but at least they do do not idolize dictatorship and follow the same courses of action and methods as a dictators does. Your orange face looney toon has already committed to destroying our way of life for only one persons gain (HIS). Don't complain when he destroys what you thought was your way of life.
Why don't you move to Russia, North Korea, or China.
The copy and paste legislation is just what Bethlehem is trying to do with Gracie(Union bought) Crampsie Smith is trying to do.
NorCo Does have a responsible contractor ordinance. It survived a court challenge. I believe it only applies to county projects and has resulted in bids awarded to nonunion contractors. I also do not believe that the apprenticeship program must be in place for five years, which does seem designed to limit application to trade unions. So far as I know, the RCO has not interfered with bidding, but I will look into that.
I completely support union labor and believe we need more of them. Where I differ on Allentown's ordinance is that there needs to be a cap on hourly rates paid. ALLENTOWN'S low-income residents shouldn't be shacked to pay the salary of someone living in the burbs and who has a second home at the shore. It is unconscionable. Also, this matter needs more deliberation, but was ruahed.
If it was not for the retreat out of Afghanistan and the killing of our fossil fuel industry Putin would not have attacked the Ukraine. There were other factors such as very weak leadership and a weaken military under this administration.
@11:31 go back and look at how this all starting setting up 5 years ago. Read it with open eyes and there is a different picture of how our democracy was set up and Ukraine was gifted to Russia by the previous administration just like the failure in Afghanistan was set up by the previous administration.
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