Protestors turned out in force to complain that the city awarded the contract for its new water-treatment plant to Cincinnati-based Dugan and Meyers and that the company would not guarantee to use local union employees. Even a mobile billboard truck was deployed.
However, City Manager Sam Sutherland said City Council is obligated to follow state law when it comes to accepting bids and only one company complied with the rules.
According to Sutherland’s office, the estimated cost of the project provided by engineers who designed it was $90,000,000.
Dugan and Meyers came in with a $105,150,000 bid. Westerville-based Kokosing Industrial came in at $110,717,000, and Dayton-based Adams Robinson Enterprises bid $129,417,000.
Sutherland said that Dugan and Meyers was the only company whose bid complied state law that forbids towns from entering into a contract where the bid is more than 20% over the estimated cost.
Though the city passed an ordinance back in 2010 requiring projects over $100,000 to use a local workforce, it was amended in 2016 to comply with a state law that said, “”that if it is not in the best interest of the City the necessity for a PLA can be negated by a recommendation of the City Manager and resolution of City Council.”
Sutherland said the council told contractors that workers on the project were to be paid prevailing wage rates whether or not they belonged to a union and the company would employ local workers on the project.
“After careful evaluation it was determined that a $5.6 million dollar difference and the requirement of the ORC Dugan and Meyers was awarded the contract. The City has been awarded $17.5 million in grant funds of which $7.5 million is Federal dollars. The other $10 million is from the State of Ohio. The remainder of this project is going to be funded by the water customers of the City of Portsmouth. It is the position of the City of Portsmouth that we support union employees and the decision was made solely based on the numbers.”
A final clarification concluded Sutherland’s 526-word statement. “It should also be noted that there will be local workers on this project.”
