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Heat put on MCC dorms project MCC dorms plan faces tough scrutiny
Goodman, James. Rochester Democrat and Chronicle [Rochester, N.Y] 26 Mar 2006: .1.

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Abstract
MCC is among the growing number of community colleges that have built on-campus housing with the help of a nonprofit organization because state regulations forbid community colleges from building or running student housing facilities. Typically, any construction project exceeding $20,000 that involves public funds must use a competitive bidding process, with sealed bids and the project going to the lowest responsible responsive bidder, said Monroe County Attorney Daniel M. DeLaus Jr.

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James Goodman Staff writer With as many as 756 Monroe Community College students on the waiting list last year for student housing, the need for more dorms has not been a matter of debate. But the plan to build an $18.4 million housing complex on the Brighton campus is under fire raising questions about accountability and oversight, about labor standards and possible cronyism. MCC proposes additional on-campus housing for 366 students. They would live in three buildings on 6 acres on the north end of campus, just east of the existing dorms. It's how MCC wants to undertake this project that has raised questions questions that are expected to come up again April 11 at a Monroe County Legislature public hearing on the land sale. A vote by the full legislature could come that same day. MCC officials want to buy the land from Monroe County for about $260,400, even though the land could be leased from the county for just $1 a year. They hope to begin construction in June and have the new housing units completed by the fall of 2007. The project has drawn criticism from some county Democratic lawmakers and local unions. The issues they raise go beyond student housing. The project touches on broader questions: What kind of oversight will be exercised and what standards will be expected when a project is for public purposes but is handled by a private organization? In this case, the private entity is the Monroe Community College Association, which would own and operate the dorms. The nonprofit association has close ties to the school. Not only is the association's chairwoman, Susan Salvador, an MCC vice president, but also the other 14 members are

school officials and student representatives. It is described by MCC as part of the campus center team serving students' needs and is responsible for a budget of about $14 million that includes food service and athletic activities. "The association is a nongovernmental corporation," Salvador said. "And it is building a project that is not regulated by the rules of public projects." In addition, the decision to select The DiMarco Group as contractor for the project was not done by competitive bidding, but was the result of ongoing discussions by the association and satisfaction with DiMarco's work designing the existing student housing, Salvador said. Democrats say that, despite the private nature of the association, the project should be put out for competitive bid. They also say that it should not be exempt from paying the prevailing wage just because it's not being called a public works project. "I have some real concerns," said Legislature Minority Leader Carla Palumbo, D-Rochester. "What this really amounts to is a public works project." Brighton officials have also raised concerns, among them that the complex would further stress town fire services. The project still needs approval from the Brighton Planning Board. MCC is among the growing number of community colleges that have built on-campus housing with the help of a nonprofit organization because state regulations forbid community colleges from building or running student housing facilities. The dorms have proved inviting to local students and those from out of town. Carmella Affinito, 20, of Syracuse was on a waiting list for housing last year and was relieved when a room opened up. Carl Ross, 19, of Rochester doesn't want to worry about catching a bus to MCC every day. "I'm now trying to get into the dorms," said Ross, who hopes to be hired as a residence assistant. <b>The deal Under the proposed deal, the association would buy 6 acres from the county and purchase access to about 1.6 acres for the new dorms for about $260,400. The $18.4 million project would be financed by bonds paid off with the fees that students pay to live in the new housing. The existing dorms cost students $2,700 a semester. MCC plans to have tax-free bonds sold with the help of the County of Monroe Industrial Development Agency, which would allow a low interest rate. That financing proposal will be considered by two County Legislature committees this week. Typically, any construction project exceeding $20,000 that involves public funds must use a competitive bidding process, with sealed bids and the project going to the lowest responsible responsive bidder, said Monroe County Attorney Daniel M. DeLaus Jr. But as it is planned, the project is not being considered a public works project and thus is not subject to competitive bidding rules and the state prevailing wage law. Initially, the association, which owns and runs the existing student housing, was just going to lease the land from the county. At Monroe County Executive Maggie Brooks' request, the County Legislature last April approved leasing 10.7 acres for three decades, at $1 a year. The arrangement is similar to

that for the existing dorms. But two weeks after the legislature's approval, state Labor Department senior attorney John D. Charles responded to concerns raised by lawyers for a local labor union and issued a memo that said: "With all due respect to the college president's claim that 'case law supports the conclusion that the project is not public work,' the fact is that case law supports the opposite conclusion." Charles cited a court decision on a different project elsewhere in the state that was primarily for public use and noted that the "public nature" of the MCC project is "stronger." Local union leaders are concerned that the state prevailing wage, not paid for the first MCC housing project, would not be paid for this project. The prevailing wage, required by state law and the state constitution for public works projects, is determined by surveys of area wages, and must include enough to cover health and pension benefits. Without the prevailing wage in effect, a company is bound to pay only the minimum wage. MCC President R. Thomas Flynn has said that paying the prevailing wage would put the cost of the proposed housing at more than $20 million, making it unaffordable. Public works projects also are ineligible for help from COMIDA. In July, Salvador informed the Labor Department that the land for the new dorms would now be bought by the association. That prompted Charles to respond in an Aug. 19 letter that, if this were the case and the project were constructed with private funds, the prevailing wage required of public works projects would not apply. <b>The DiMarco choice The DiMarco Group, based in Brighton, was awarded the first contract, to build housing for 410 students, after other bids were reviewed. That project cost $16.1 million. Although contracts for the new housing have not been finalized, Flynn said there is no need to put the project out for bid and, since it is not considered a public works project, there is no requirement to do so. Flynn said that plans call for using The DiMarco Group again and using the same design for the dorms. "It's cost-effective to do it this way," Flynn said in testimony earlier this month before a legislative committee. But Legislator Paul Haney, D-Rochester, questions how MCC can know it's getting the cheapest price unless it seeks competitive bids. "They are avoiding the public-bidding law. They are handing over a county contract to The DiMarco Group," he said. Haney also questions whether political connections are at play. Campaign finance records show that businesses at the same address as The DiMarco Group including DiMarco Constructors and Admar Supply Co. have contributed extensively to the local Republican committees, giving a total of $43,000 in 2004 and 2005.

State Board of Election records show that, while DiMarco Constructors and DiMarco family members gave frequently and in large sums to Republican candidates and committees in recent years, they also occasionally gave to Democratic candidates. John L. DiMarco, chairman of the board of The DiMarco Group, and his wife, Deborah, recently gave $1 million to Building on Success: The Campaign for Monroe Community College. And MCC's new synthetic turf field for soccer and lacrosse is named for him. MCC officials say that political considerations did not enter into the choice. John L. DiMarco II, president of The DiMarco Group, also said that political contributions had nothing to do with its selection. "They selected us because they were happy with the project we did with them," DiMarco said. Majority Leader Bill Smith, R-Pittsford, said there is nothing inappropriate about the way MCC is handling the new housing arrangement. "This is not a loophole. This is merely structuring it to begin with in the only way the law allows," Smith said. But union leaders are not only urging that MCC submit the housing to a competitive bid process but also asking that prevailing wages be paid. "If it were not for this unusual sale, the project would be considered a public work, and therefore subject to many laws protecting workers," said Daniel Conte, president of the Rochester Building Trades Council. JGOODMAN@DemocratandChronicle.com What's at stake Proper oversight of public projects. A plan to build dorms at Monroe Community College is under fire over how the contractor was selected and whether prevailing wages will be paid.

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Indexing (details)
Subjects Nonprofit organizations, Dormitories, College students, Labor standards, Food service, Colleges&universities, College campuses Heat put on MCC dorms project MCC dorms plan faces tough scrutiny Goodman, James Rochester Democrat and Chronicle A.1 2006 Mar 26, 2006 2006

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