AMP promises to fix labor problems with solar site

AMP CEO Marc Gerken talks to Bowling Green City Council Monday evening about solar project.

By JAN LARSON McLAUGHLIN

BG Independent News

 

Nagging questions surrounding the solar field construction have paid off – literally, for the workers there.

American Municipal Power CEO Marc Gerken stood before Bowling Green City Council Monday evening, apologized and promised to make things right.

Bowling Green officials, who went to bat for the solar project, and the Wood County Commissioners, who approved the project’s tax abatement, have been demanding answers about construction of the site. They suspected that the job was not employing at least 80 percent Ohio labor, and they knew that the contractor wasn’t paying prevailing wage.

Gerken took responsibility for one of those issues – the lack of prevailing wages being paid on the worksite.

“I’m deeply sorry for that,” he said to City Council and a packed council chambers Monday.

Gerken said AMP had planned all along for the project to be a prevailing wage job. However, the size of the 20 megawatt site and the speed at which it needed to be done meant AMP had to go outside for help.

“We can’t pull this off ourselves,” Gerken said it was quickly realized. So AMP picked NextEra as a partner as the developer. NextEra then hired Blattner Energy as the construction contractor.

Somewhere along the line, the prevailing wage standard was dropped. AMP realized the error when Bowling Green officials brought it to the company’s attention.

“I applaud the city for raising it when they did,” Gerken said.

When pressed, NextEra amended its contract with Blattner to require that prevailing wages be paid. The company will also go back and make up for lost wages, Gerken said.

“They owned up to it,” Gerken said. “But we should have been on top of it. We stumbled a little bit here and I take ownership of that.”

As far as the other issue – of 80 percent Ohio labor being required in the tax abatement agreement – Gerken said a law firm has been hired to audit the workforce at the site to make sure Blattner is complying. The audit will certify how many workers are true residents of Ohio.

Last week, the Wood County Commissioners sent a letter to the Ohio Development Services Agency stating the county is prepared to yank the tax abatement agreement with NextEra if proof cannot be presented that the contractor is using enough Ohio labor.

“Over the past few weeks we have received information stating that the prime contractor, Blattner Energy, may be skirting the 80 percent requirement by leasing local rental housing for out-of-state employees and suggesting that they obtain an Ohio driver’s license,” the letter stated. “Meanwhile, many vehicles parked at the project site have out-of-state license plates.”

Gerken said that if Blattner isn’t using enough Ohio labor, that company will be held responsible for the additional costs – not AMP and not Bowling Green.

“This is on them if they don’t meet it,” he said.

Gerken said AMP will get a monthly report on the workforce audit.

Council president Mike Aspacher expressed relief that the issues were being addressed.

“Thank you for coming and providing that explanation,” Aspacher said, adding that he felt Gerken gave “suitable responses” to council’s concerns.

Council member Bruce Jeffers thanked Gerken for taking ownership of the issues and finding solutions.

Gerken said he appreciated city officials helping the project get county approval for the tax abatement. “I know the city went to bat for us.”

He also mentioned the success of the city’s wind turbines, and noted the size of the solar field. “This is a big project that sets us out in the state.”

Aspacher said he felt Gerken’s efforts had helped redeem the “integrity of the project.”