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CONTRACTS THAT WOULD YIELD SAVINGS IN DWSD

FERGUSON ENTERPRISES, WATER SYSTEMS IMPROVEMENTS, AND REPAIRS OF WATER SYSTEMS, WS-671, $ 2,394,573, WS-665 $1,953,795, WS-623 $ 5,278,610, WS-626 $2,989,000, WS-651 $ 720,195, WS-666-$4,000,000, WS-647 $2,000,000, WS-633 $3,000,000, WS-603 $1,500,000, CS-1347 $ 981,835, WS-640 $2,153,378 AND WS-601 $1,600,000.

LAKESHORE ENGINEERING SERVICES, INC. CM-2014 $13,486,655, CM-2015 $16,325,335.

HAYES EXCAVATING CO. WATER SYSTEMS IMPROVEMENTS WS-642 $1,998,482, WS-649 $797,796, WS-632 $2,247,835, WS-597 $6,882,901, WS-667 $2,561,848 , AND WS-616 $3,747,113.

WILLIE MCCORMICK AND ASSOCIATES WATER SYSTEMS IMPROVEMENTS WS-657 $1,591,699, WS-638A $2,104,571.

IMPERIAL CONSTRUCTION WATER SYSTEMS REPAIRS WS-675 $6,855,300.

The preceding contracts are for replacement of water mains and sewers, there are others that are not listed. One of DWSD requirements in these contracts is the payment of prevailing wages to the employees of these contractors. The prevailing wage for Pipefitter is $36.66/hr, a crew leader on a DWSD crew installing, or repairing pipe is a Senior Water Systems Mechanic whose wage is $17.03/hr, only 46.4% of the wage paid to the contractor’s employee. The Prevailing Wage for Laborer is $34.26/hr where the wage of a Water Systems Helper is $14.73, which is only 43% of the wages paid to the equivalent contractor employee. Using the average of 44.7% wage discrepancy DWSD could have saved $38,961,000 by using city workers on these projects over recent years. There are many variable on both sides of the equations in such estimates of savings including the need to spend significant amounts to bid and administer contracts with outside vendors.

INLAND WATERS POLLUTION CONTROL INC. /EXCEL CONSTRUCTION SERVICES INC. JOINT VENTURE, DWS-864 SEWER REPAIRS

This is a $30,000,000 master contract with at least 5 major subcontractors. This work uses similar staff as the water main replacement contracts mentioned above. Using the same 44.7% wage disparity factor the savings to DWSD could be $13,000,000 on this project alone.

WASTEWATER PLANT BIOSOLIDS SUPPLY SERVICE CONTRACT MINERGY DETROIT, LLC ( SYNAGRO )

This contract is one of the city contracts that are being examined by the FBI due to the involvement of ex-Synagro Vice President James Rosendall and the suspected bribery of City Council members affecting the approval of the contract. City Council has been advised by the Law Dept. that rescission of the contract couldn’t go forward on just allegations in the press. Local 207 has a lawsuit pending on this major privatizing (a total of 140 jobs according to Victor Mercado) of city workers jobs. The savings that would be generated by DWSD installing and operating with city workers, its own fluidized bed incinerators has not been fully costed out, though DWSD’s internal study did recommend that as a possible future course of action. Over time that would generate significant savings in staffing and energy consumption. DETROIT METER PARTNERS CM-2007
WEISS CONSTRUCTION SUBURBAN METER AUTOMATION

DWSD Meter Shop workers have superior training and experience and do identical work as the outside contractor including installation, instrumentation work, maintenance, and troubleshooting of the new Radio Read Water Meter System. Keeping the work in house would have benefited Detroit due to increased local hiring and taxes. Note that 95% of Local 207 members live in the 482xx zip code. The financial savings to DWSD would be significant.

DFT SECURITY TEAM DWS-844A

This contract is one of the city contracts that are being examined by the FBI due to the involvement of Ferguson Enterprises. Today at 8:30 am the FBI raided Ferguson’s office on Linwood as part of their criminal investigation of corruption involving DWSD contracting out practices.

DEMARIA MIDWEST JOINT VENTURE SKILLED TRADES ASSISTANCE PC-759

This contract provides skilled trades workers to assist DWSD in day to day work and special projects. Contract PC-759 is $ 19,453,723/yr. The charged price for the highest paid contractor Plumber is $62.58/hr, the highest wage for a city plumber multiplied times the CofD benefit cost multiplier of 49% equal $39.42/hr which is 63% of the wage of the contractor employee. If this cost disparity holds across the entire contract there could be a savings of as much as $7,000,000/yr.

WADE TRIM/SIGMA ASSOCIATES, INC. CS-1392

This contract and others like it are engineering consultant projects related to Mayor Kilpatrick’s Special Administratorship at DWSD and compliance with Judge Feiken’s orders. There is no longer a Special Administratorship and Feikens has championed the end of his oversight of DWSD. This contract cost $2,910,000 and may no longer to be expenditure in the future.

REPAIR SERVICE PARTS AND LABOR CUMMINS AND CATERPILLAR ENGINES: CRANE CARRIER COMPANY AND AUTOCAR VEHICLES

Although the union has yet to receive this contract our General Auto Mechanics can do each and every task that this vendor’s mechanics can do. Note that there still are 7 Auto Mechanics on layoff that if brought back to DWSD could assist in doing the repair and rebuilding that this contract likely includes.

MARTIN CONTROL SERVICES, SUBURBAN SEWAGE BILLING METER AND GDRSS METER MAINTENANCE CS-1413

Union workers can save DWSD money on these contracts because of the built in Profit Markup of 15% for the labor supplied by these companies. The cost savings by using city workers on this contract alone equals $177,000/yr. It should be understood that DWSD is acquiring 12 new Water Systems Instrument Technician Apprentices at this time. This would allow more of this work to be brought in house. Interestingly some of these contractors hire ex-city workers who have been fired for substance abuse or other offences. Also notable is that if the proposed sale of the Oakland-Macomb interceptor System goes through this work will no longer be a cost burden to DWSD.

SERVICE CONTRACT FOR JANITORIAL SERVICES FOR CENTRAL SERVICES FACILITY, T&N SERVICES INC. SERVICE CONTRACT FOR JANITORIAL SERVICES FOR CENTRAL SERVICES FACILITY, ABM JANITORIAL SERVICES

Union workers can do the work the ABM and T&N do, and at a lower cost. The work involved is custodian work at the DWSD Central Service Facility. This work is identical to the work as AFSCME Local 207 Building Attendants, of which 5 are currently on layoff. Understanding that Building Attendants wages range from $8.69/hr – 13.89/hr averaging $11.25/hr and with the CofD benefit cost multiplier of 49% the total cost per worker per year is $34,850. The total yearly cost of the ABM and T&N contracts is $7,944,695 which is equivalent to the salaries of 228 AFSCME Local 207 Building Attendants. These companies currently employ 22 workers at CSF. If DWSD were to employ 22 city workers the cost would be $766,700/yr. Even if the supplies for 22 workers cost $1,000,000/yr the total cost to DWSD would be be $1,766,700. Therefore the savings would be over $6,000,000/yr.

AFSCME LOCAL 207 HAS LISTED HERE A TOTAL OF 65 MILLION DOLLARS IN POTENTIAL SAVINGS AND MUCH MORE FUTURE SAVINGS IF THE CONTRACTED OUT WORK IS DONE BY CITY WORKERS.