Passaic County Commissioner Nicolino Gallo Urges Colleagues to Support Project Labor Agreement for County Jail Demolition & Abatement

For Immediate Release

Statement of Commissioner Nicolino Gallo

At last week’s meeting of the Passaic County Board of Commissioners, members of local union building tradesmen and tradeswomen attended and addressed the board regarding a recent decision to bid the demolition, abatement and site clearing of the Passaic County Jail, without utilizing a Project Labor Agreement, or “PLA” – which ensures that labor is qualified, trained, skilled LOCAL tradesmen and tradeswomen.

In addition to questions from members of the public who were present, I attempted to personally question the administration and my fellow Commissioners regarding this same issue, but unfortunately was ignored.

I am writing this letter in the hopes that my concerns regarding the procurement process for this project will be addressed.

This board unanimously approved a $7 million capital ordinance to fund the redevelopment project on the county jail site in downtown Paterson; starting with the demolition, abatement and site-clearing of the 66-year-old jail facility, in preparation for future use by the County.

This board also passed a resolution, allowing all County projects over $5 million to be performed under a Project Labor Agreement.

This leads to me to question why this project – which includes large-scale demolition, in a densely populated community, including the abatement of asbestos and other potentially hazardous materials – is not an ideal candidate to be bid with a PLA?

PLAs reduce inefficiencies, and lead to time and cost savings, preventing labor disputes, and inconsistent work conditions and standards – more importantly – whether a PLA is in place or not, all work performed will be subject to Prevailing Wage Rates.  This means, under either procurement scenario, the labor cost should be equal, if the contractor is following the law.  PLAs help prevent unscrupulous contractors from misclassifying their workers and ensure that the workforce is qualified, credentialed, and have a local stake in the project and its impact on the community of Paterson and the County at large.

It has been estimated that every $1 of capital project public investment generates $3 in local economic benefit.  A PLA will ensure that these economic benefits created with our Passaic County tax dollars go to residents and businesses here, rather than having our dollars sent out of the county or even out of the state.

Utilizing a PLA will ensure that 88% of labor working on this project will be performed by skilled craft workers who live in Passaic County – and the County can add other  local hire provisions to assist with local workforce development goals. Other safeguards provided by PLAs can be negotiated, protecting the County as the contracting entity.

Considering all of the above, and my position as an elected County Commissioner, I would like County Administration to provide responses in writing to the following questions:

• Can you explain why the County would support a resolution expanding the use of PLAs while not utilizing a PLA on this project?
• Why, unlike nearly every other County in North Jersey, has Passaic County never utilized a PLA for project delivery?
• Will the County be utilizing a PLA on any planned capital public works projects? What is the justification for the difference in procurement practices?
• Have there been other procurement/capital project challenges recently experienced by Passaic County or related entities? If so, please explain.

Thank you in advance for your consideration and cooperation regarding this critical issue that is

important to myself, the thousands of union building trades members who live in Passaic County and all of our taxpayers.