Letter to Mayor and Council Sky Harbor Project Delay October 8th, 2014 The Arizona Builders Alliance and the Associated General Contractors wish to express their objection to the recent actions of the Phoenix City Council delaying the project at Sky Harbor Airport. This action is unprecedented and illegal under Arizona law. Arizona statutes provide a process for the selection of contractors and subcontractors for public works projects. That process protects taxpayers, public agencies and contractors alike. Arizona laws assure that there is an open, fair and predictable system of identifying quality contractor and contracting for their services. The Phoenix City Council has a legal obligation to assure that the spirit and intent of the law are followed. Instead, the actions of the City Council have turned the process into a mockery of the law. For all appearances, this is a thinly disguised attempt at a political payoff to organized labor. During the delay period the Arizona Building Trades Unions are using the pressure created on the contractor to extort more work for union contractors. During the preconstruction process hundreds of subcontractors and suppliers have the opportunity to compete for the work. Union contractors had equal opportunities as well. All contractors have to compete on their proven track record including ability to staff the project, complete work of similar complexity, hold to an agreed budget and provide a quality finished product. Union and open shop firms compete on an equal footing. To force contractors to be selected based on union affiliation is an abuse of Council’s authority. There are certainly union firms who will receive contractor awards based on their ability to perform the work at a price that meets the City’s budget objectives. While the unions are using the delay to leverage work away from one set of Arizona workers to another, the City will increase the cost of the project by $1.9 million dollars. Imagine all that could be done for the citizens of Phoenix if that money were not wasted! The City of Phoenix has won numerous awards over the years including “All American City” and “Best Run City in America”. Phoenix is looked to by other public agencies as a model of how to conduct business. This is especially true in the public works procurement process. The recent improper action of the City Council jeopardizes the historic standing of the Phoenix as a role model and leader. We hope that the City will immediately reverse its decision to delay the Sky Harbor project. Sky Harbor is a huge economic driver for Phoenix and the region. To delay a project of such magnitude for such shallow and improper purposes is unconscionable. Our organizations stand ready to work with the City of Phoenix in the future to assure the public works procurement process is fair, open and equitable to all parties, including taxpayers. Sincerely, David Martin, President Mark Minter, Executive Director Associated General Contractors Arizona Builders Alliance