MONROE - Too many questions about changes in the state's prevailing wage law still loom for anyone to know exactly how they will affect the costs of public works projects, according to local officials and those in the business community.
The effects of the changes on the city are one reason Monroe Mayor Ron Marsh is calling for a public town hall meeting on May 7, inviting state lawmakers, city officials, business owners, contractors and taxpayers to attend.
Marsh knows the changes will increase the number of projects for which the city will have to file for prevailing wage rates before issuing contracts, he said.
"Right now, (city engineer supervisor) Al Gerber said it's about two to five projects per year, with a potential of 80 to 100 projects," Marsh said.
The increase included in Gov. Jim Doyle's biennial budget proposal will be caused by lowering the limit of project costs which will require prevailing wages to be paid. Currently, Wisconsin prevailing wage laws govern public works projects over $48,000 for single-trade projects and $234,000 for multi-trade projects. The new law would set $2,000 as the estimated completion cost for all state and local public works projects that would fall under state prevailing wage law provisions.
"It'll effect just about everything," Marsh said.
The downtown Square revitalization is one project that could have its price tag impacted. The project is being paid for with tax increment district No. 7 funds.
Another project that might get hit is the new animal shelter, for which the Green County Humane Society is negotiating a contract with the city to purchase a lot in the Honey Creek Industrial Park.
Marsh also expects the extra paperwork involved for the city and contractors to be "labor-intensive just for the forms."
Dr. David Riese, chairman of the Historical Preservation Commission; Alderman Jan Lefevre, chairman of the Public Property Committee; John Bridger, chairman of the Revolving Loan Committee; and Alderman Charles Schuringa, chairman of the Community Improvement Committee, all contacted Monday morning, were not commenting on the new law effects, because they said they just didn't know yet if the change would increase the cost of projects.
Humane Society President Paul Barrett said the animal shelter project was "not even close" to start worrying about prevailing wage issues.
Jerry Gentz, owner of Gentz Electric, Monroe, said the new law wouldn't affect his company.
"Not at all," he said. "You don't have to bid on a prevailing wage job. We do a lot of them."
Gentz said the prevailing wage varies by municipality. "The farther west you go, the cheaper it gets," he said.
Gentz also said contractors "hurt themselves" by not filling out the prevailing wage surveys, collected by the state Department of Workforce Development to determine prevailing wage rates.
"They tell me 'It's none of the government's business what I pay my guys;' but they don't have to sign (the surveys)," he said.
But Gentz also agrees with Marsh and Assemblyman Brett Davis, who is challenging the governor's changes.
"It's not creating more revenue. I don't know where the governor is coming from," he said.
To stimulate the economy, Marsh said the community needs money to "keep rolling and keep multiplying." He believes the law changes would not stimulate the economy, but will increase taxpayers' out-of-pocket costs the most and, in turn, reduce their purchases.
"Is that economic growth?" he asked.
Marsh called the prevailing wage law "a dinosaur," that has outlived its usefulness.
"Back in the 1930s (when the laws were first created), they were probably needed - a lot," he said. "They were needed a lot to protect workers, and plenty of rules and regulations were created to protect workers. It was good in its time."
Today, all government construction projects have to go through close scrutiny of the design, inspections of construction and maintenance.
The city hired Fehr-Graham and Associates to inspect the Walmart project, parts of which will come back to the city as infrastructure - water, sanitary and storm sewers and roads. Those inspection costs are billed back to Walmart. The construction and costs of those public infrastructure are embedded in the Planned Unit Development documents.
Marsh said Rep. Davis, R-Oregon, already is scheduled to attend the Monroe town hall meeting, as is Sen. John Erpenbach, D-Waunakee, or a representative.
But Marsh said the town hall meeting is not for legislators to make long statements. Instead, he is preparing for a long question-and-answer session.
Even Marsh said he doesn't have all the answers yet.
On Monday, he was seeking the answer to what the city would have to go through in the event of an emergency project. Gerber knows of no past emergency provisions in the state Department of Workforce Development prevailing wage rules and regulations, Marsh said.
"For example, a water leak, which could cost $5,000 to fix; do we have to wait to get a prevailing wage rate for that? Five thousand dollars is not a lot of money in this economy," Marsh said.
The effects of the changes on the city are one reason Monroe Mayor Ron Marsh is calling for a public town hall meeting on May 7, inviting state lawmakers, city officials, business owners, contractors and taxpayers to attend.
Marsh knows the changes will increase the number of projects for which the city will have to file for prevailing wage rates before issuing contracts, he said.
"Right now, (city engineer supervisor) Al Gerber said it's about two to five projects per year, with a potential of 80 to 100 projects," Marsh said.
The increase included in Gov. Jim Doyle's biennial budget proposal will be caused by lowering the limit of project costs which will require prevailing wages to be paid. Currently, Wisconsin prevailing wage laws govern public works projects over $48,000 for single-trade projects and $234,000 for multi-trade projects. The new law would set $2,000 as the estimated completion cost for all state and local public works projects that would fall under state prevailing wage law provisions.
"It'll effect just about everything," Marsh said.
The downtown Square revitalization is one project that could have its price tag impacted. The project is being paid for with tax increment district No. 7 funds.
Another project that might get hit is the new animal shelter, for which the Green County Humane Society is negotiating a contract with the city to purchase a lot in the Honey Creek Industrial Park.
Marsh also expects the extra paperwork involved for the city and contractors to be "labor-intensive just for the forms."
Dr. David Riese, chairman of the Historical Preservation Commission; Alderman Jan Lefevre, chairman of the Public Property Committee; John Bridger, chairman of the Revolving Loan Committee; and Alderman Charles Schuringa, chairman of the Community Improvement Committee, all contacted Monday morning, were not commenting on the new law effects, because they said they just didn't know yet if the change would increase the cost of projects.
Humane Society President Paul Barrett said the animal shelter project was "not even close" to start worrying about prevailing wage issues.
Jerry Gentz, owner of Gentz Electric, Monroe, said the new law wouldn't affect his company.
"Not at all," he said. "You don't have to bid on a prevailing wage job. We do a lot of them."
Gentz said the prevailing wage varies by municipality. "The farther west you go, the cheaper it gets," he said.
Gentz also said contractors "hurt themselves" by not filling out the prevailing wage surveys, collected by the state Department of Workforce Development to determine prevailing wage rates.
"They tell me 'It's none of the government's business what I pay my guys;' but they don't have to sign (the surveys)," he said.
But Gentz also agrees with Marsh and Assemblyman Brett Davis, who is challenging the governor's changes.
"It's not creating more revenue. I don't know where the governor is coming from," he said.
To stimulate the economy, Marsh said the community needs money to "keep rolling and keep multiplying." He believes the law changes would not stimulate the economy, but will increase taxpayers' out-of-pocket costs the most and, in turn, reduce their purchases.
"Is that economic growth?" he asked.
Marsh called the prevailing wage law "a dinosaur," that has outlived its usefulness.
"Back in the 1930s (when the laws were first created), they were probably needed - a lot," he said. "They were needed a lot to protect workers, and plenty of rules and regulations were created to protect workers. It was good in its time."
Today, all government construction projects have to go through close scrutiny of the design, inspections of construction and maintenance.
The city hired Fehr-Graham and Associates to inspect the Walmart project, parts of which will come back to the city as infrastructure - water, sanitary and storm sewers and roads. Those inspection costs are billed back to Walmart. The construction and costs of those public infrastructure are embedded in the Planned Unit Development documents.
Marsh said Rep. Davis, R-Oregon, already is scheduled to attend the Monroe town hall meeting, as is Sen. John Erpenbach, D-Waunakee, or a representative.
But Marsh said the town hall meeting is not for legislators to make long statements. Instead, he is preparing for a long question-and-answer session.
Even Marsh said he doesn't have all the answers yet.
On Monday, he was seeking the answer to what the city would have to go through in the event of an emergency project. Gerber knows of no past emergency provisions in the state Department of Workforce Development prevailing wage rules and regulations, Marsh said.
"For example, a water leak, which could cost $5,000 to fix; do we have to wait to get a prevailing wage rate for that? Five thousand dollars is not a lot of money in this economy," Marsh said.