| At tonight's legislative session of County Council, Allegheny County Councilman Matt Drozd wants to stop a practice that discriminates against the majority of businesses in Allegheny County by introducing an ordinance that bans the use of PLA's in Allegheny County government contracts and its agencies. When doing so, the Councilman notes that A PLA requires successful bidders to enter into agreements, known generally as "Project Labor Agreements" ("PLAs"). By imposing a PLA on a public works construction project, experienced and responsible contractors who are not otherwise signatory to collective bargaining agreements will decline to submit bids for projects covered by a PLA thereby artificially reducing the pool of potential responsible bidders to the financial detriment of the County, its taxpayers or a County agency; and freedom of contract and employment are among the most basic freedoms enjoyed within our society, and such restriction of these freedoms is unacceptable. County Councilman further notes that PLAs can discriminate against the majority of businesses in Allegheny County seeking these contracts notably, small businesses and women owned businesses (see ordinance below).
When: Tonight, Tuesday, April 2, 2013 at 5:00 PM Where: Court House Gold Room AN ORDINANCE An ordinance of the County of Allegheny, Commonwealth of Pennsylvania, to amend and supplement the Allegheny County Code of Ordinances, Division 1, Chapter 5, entitled "Administrative Code," in order to prohibit the execution of certain service contracts by the County, and enumerated County agencies. WHEREAS, according to published reports, Allegheny County and certain entities designated as County agencies pursuant to the terms of §5-215.01 of the Administrative Code of Allegheny County, have been engaging in the practice of requiring successful bidders to enter into agreements, known generally as "Project Labor Agreements" ("PLAs"); and WHEREAS, a PLA is an agreement the County or a County Agency may enter into which, among other things, may place requirements upon the successful bidder on a public works construction project who is not otherwise signatory to a collective bargaining agreement; and WHEREAS, the Pennsylvania Prevailing Wage Act, 43 P.S. section 165, et. seq., on all County or County agency construction projects having a total project cost in excess of $25,000 mandates that all employees working on any such project, regardless of employee representation, be paid the wages and fringe benefits pre-determined by the Department of Labor & Industry; and WHEREAS, a probable consequence of imposing a PLA on a public works construction project is that experienced and responsible contractors who are not otherwise signatory to collective bargaining agreements will decline to submit bids for projects covered by a PLA thereby artificially reducing the pool of potential responsible bidders to the financial detriment of the County, its taxpayers or a County agency; and WHEREAS, freedom of contract and employment are among the most basic freedoms enjoyed within our society, and it is the judgment of Council that any systematic restriction of these freedoms is undesirable; and WHEREAS, the Administrative Code of Allegheny County at section 5-903.02 requires for all contracts in excess of $30,000 that they be awarded to the lowest responsible responsive bidder; and WHEREAS, the laws of the Commonwealth of Pennsylvania, most notably the Pennsylvania Procurement Code, ("Code") requires that all government agencies, including the County and County agencies, award contracts through competitive sealed bidding to the lowest responsible and responsive bidder. 62 Pa. C.S.A. section 3911; and WHEREAS, the deleterious consequences of restricting, based upon employee representation status, who may be employed to work on County revenue funded projects are even more pronounced in difficult economic times, as they will increase the reliance on unemployment compensation and other publicly financed safety net programs; and WHEREAS, restricting employment on County revenue funded projects runs precisely contrary to the established and stated federal and Commonwealth of Pennsylvania policies of endeavoring to put as many Americans to work in a non-discriminatory manner as possible in order to stimulate the economy; and WHEREAS, it is the judgment of Council that the use of PLAs which have the direct effect of favoring or disfavoring any individual worker based solely upon his or her representation status is both invidious and undesirable; and WHEREAS, although the process of negotiating and signing contracts on behalf of the County proper is expressly reserved to the Chief Executive under the terms of Article V, Section 2(i) of the Home Rule Charter of Allegheny County, neither the Charter nor applicable law prohibits the enactment of federal, state, or local statutes that place limitations on that power; and WHEREAS, existing County law, most notably §5-911.03 of the Administrative Code of Allegheny County and §280-1 of the Allegheny County Code of Ordinances, together with other Commonwealth of Pennsylvania laws, most notably the Code and the Prevailing Wage Act already expressly establishes County contract requirements; and WHEREAS, PLAs can discriminate against the majority of businesses in Allegheny County seeking these contracts notably small businesses and women and minority owned businesses; and WHEREAS, it is accordingly the desire of Council to prohibit the practice of entering into PLAs by the County or any County agency when County revenues will be expended directly or indirectly on public works construction projects; The Council of the County of Allegheny hereby enacts as follows: SECTION 1. The provisions of the preamble to this ordinance are hereby incorporated in their entirety herein. SECTION 2. County Contracts The Allegheny County Code of Ordinances, Division 1, Chapter 5, entitled "Administrative Code," §5-911.03, entitled "Specific contract requirements," is hereby amended as follows:
§5-911.03. Specific contract requirements. A. Except for agreements entered into with any department, bureau, or agency of the United States government or the Commonwealth of Pennsylvania, unless specifically waived by the County Executive with notification to County Council prior to or contemporaneous with the execution of the agreements, the County shall not enter into any agreement that contains a provision requiring the County to indemnify or hold harmless any person, partnership, association, corporation or other entity. B. To the greatest fiscally responsible extent the County shall give preference to American made or American-manufactured products. The Purchasing Officer shall establish guidelines to govern the implementation of a "buy American" policy in the purchase or procurement of materials, supplies, furnishings, equipment or other personal property and nonprofessional services. C. To the greatest fiscally responsible extent, the County shall develop and implement a policy to ensure participation by disadvantaged business enterprises. D. Under no circumstances shall the County enter into any contract, memorandum of understanding, or other agreement substantially similar to a Project Labor Agreement (or PLA) for the performance of labor or other contracted work on any project that is financed to any extent by County revenues if such contract or agreement contains any provision(s) restricting or in any way favoring or disfavoring the employment of individuals, companies, or other entities on the subject project based upon the representation of any individual(s) to be employed to perform work on the subject project by any union or other labor organization. All such contracts shall be awarded to the lowest responsible and responsive bidder . SECTION 3. County Agency Contracts The Allegheny County Code of Ordinances, Division 1, Chapter 5, entitled "Administrative Code," Article 215, entitled "Retained County Agencies," is hereby amended through the addition of a new §5-215.05, comprised as follows: §5-215.05. County agency contracts. Under no circumstances shall any County agency delineated under the terms of §5-215.01 of this Administrative Code enter into any contract, memorandum of understanding, or other agreement for the performance of labor or other contracted work on any project that is financed to any extent by County revenues if such contract or agreement contains any provision(s) restricting or in any way favoring or disfavoring the employment of individuals, companies, or other entities on the subject project based upon the representation of any individual(s) to be employed to perform work on the subject project by a union or other labor organization. All such contracts shall be awarded to the lowest responsible and responsive bidder. All County agencies shall, no later than 30 days after enactment of the within Ordinance, adopt formal written procurement policies incorporating the County's prohibition against the use of Project Labor Agreements as a condition for each such agency's eligibility for further funding or sponsorship by the County. SECTION 4. If any provision of this Ordinance shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of this Ordinance which shall be in full force and effect. SECTION 5. Repealer. Any Resolution or Ordinance or part thereof conflicting with the provisions of this Ordinance is hereby repealed so far as the same affects this Resolution. SECTION 6. Effective Date. This Ordinance shall bcome effective immediately upon its approval by the Allegheny County Counsel and Chief Executive.
PRIMARY SPONSOR: COUNCIL MEMBER DROZD
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