And they say Charters save money….
DC-based lobby groups have long claimed that cities could save implausible amounts of money by chartering in order to eliminate prevailing wage on locally-funded city construction projects.
Because we deal in fact-based reality, we have known from the start that these claimed savings were not in the realm of possibility.
Now it seems that even those who have followed this risky path to charter are seeing the error of their ways.
For the second time in as many years, the City of Costa Mesa is considering placing a charter on the ballot that would eliminate prevailing wage – and the middle class jobs that come with it – on city funded building projects. They are doing this even though 60% of voters rejected this idea at the ballot last November.
As part of their drafting process, Costa Mesa sent questionnaires to other cities inquiring about their local prevailing wage policy and its effects on the bottom line.
The response from the City of Carlsbad says all that cities considering charter really need to know on the subject.
When asked what savings were realized by paying workers less, Carlsbad responded: “We have found savings to be hard to ascertain. Bid prices may be lower on the front end but there is some suspicion that total project costs may impact initial savings (change orders, costly project delays, more labor by city employees, etc.)”
They went on to say that they have not determined an accurate method of calculating savings in the first place.
How could the huge savings claims be real if they aren’t significant enough to be measured?
The fact remains that if cities want to get the job done for a good value, on time and on budget, the safest bet with taxpayers’ money is to go with prevailing wage contractors. Prevailing wage workers are the most skilled in their fields, and the result is a safe and efficient workplace that gets the project done right – on the first try.
Costa Mesa is moving forward with a charter scheme that would eliminate prevailing wage – costing that city countless middle class jobs – even after hearing from Carlsbad and a host of other sources that the potential savings by pursuing this policy are imaginary. They have fallen for the hype from the DC lobbyists, and once again it looks like it is going to be up to local voters to reject the flawed proposal for what it is – a risky scheme that could hurt the city, and only help politicians who want more power.
The verdict is in, and it says that prevailing wage is no more expensive and produces a reliable product at a good value for taxpayers – all while producing middle class jobs that are the backbone of local economies.
The real question is why would politicians choose a path that saves no money, opens the door to lawsuits, deficit spending, and higher taxes, and in some cases like the fiasco in the City of Bell, can lead to financial ruin and rampant corruption.
These are risks that clearly outweigh any perceived reward, and cities should proceed with caution, or they could become the next front page story. – See more at: http://smartcitiesprevail.org/…