"Operation City Lights" Targets McLaughlin

Channel 4's very well-sourced Jonathan Dienst(the same guy who had last fall's terror warning story) laid out the story behind the Central Labor Council raid just now, which appears to have focused on Council president Brian McLaughlin and a set of electrical contractors who -- Diesnt reports -- allegedly conspired with him to rip off the Department of Transportation.

The FBI's "Operation City Lights," according to the report (and Dienst had cameras in place at three separate raids) targeted McLaughlin's district office as well as the Labor Council's headquarters.

It sounds like an old-time bid-rigging scam: The suggestion is that electrical contractors divvied up neighborhoods, setting "low-bids" in advance, with other contractors deliberately bidding too high on street light contracts. McLaughlin was allegedly compensated with cash, an American Express card, and the installation of his alarm system.

McLaughlin, it's worth noting, came up as an electrical worker.

Also: Another huge black eye for the city's Department of Transportation.

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Comments
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Beadie Markowitz (not verified) says:

This is not a black eye for the DOT. This is ferreting out corruption. If I were a betting woman, I would say that Weinshell cooperated so that her Department could be cleaned out.

LikewiseThrilled (not verified) says:

Now, how can we really think that Andrew Cuomo would put his shoulder behind an investigation of one of his earliest supporters? This is the problem with Albany. Makes Charlie King's scandal look like small potatoes.

Not for Suozzi (not verified) says:

Or Spitzer investigating pols.

Yoda (not verified) says:

If DOT did cooperate, that is ecidence that pols will support investigations of their supporters, since the CLC supported both Mike & Commisioner Weinshall's husband.

Spectaculo (not verified) says:

A big fat crap sandwich this is...

Gatemouth (not verified) says:

But, given the small-time sleaze involved (almost Spiro Agnew level), it's hard to see how this sticks to any other pol; unless someone at DOT was in on it.

Anon (not verified) says:

If Weinshall cooperated, she did what every public servant should. The point is, the buck stops with her. Even if she did the right thing with the investigation, if she'd been doing her job in the first place, it never would have happened.

anon (not verified) says:

Jeez, and this on the very day Chuck voted for the Patriot Act...you'd think they'd have cut him some slack for that.

Comptrollers (not verified) says:

We know Weinshall looks the other way like any normal token booth clerk when a crime is being committeed. But what were the city and state Conptrollers doing.

If they can't pick up a bid-rigging scam. How many more of these games are going on Mayor Thompson.

Anonymous says:

NO MORE GIULIANI APPOINTEES, WEINSHALL MUST GO!

anon4utu (not verified) says:

And, what about the Ferry crash!

T (not verified) says:

Well, there have been a lot of problems with the street lighting system for a little bit over a year. Although part of it may stem with the whole Con Ed issue i.e. stray voltage, etc. there have been many problems with the DOT's current contractor... and this may explain a lot.

Nicolo Macchiavelli (not verified) says:

Maybe it explains, or is caused by the cities reluctance to use the more efficient and safe stop signs to replace the expensive and dangerous traffic signals. This would be a great opportunity for the State Legislature to allow more red light cameras and speed cameras.

kilowhat? (not verified) says:

I always wondered why Petrocelli Electric and Wesbach Electric seem to be the only companies you see when street lights need repairing. DOT is certainly to blame for not encouraging more competition. I smell hearings on this issue.

kilowhat? (not verified) says:

I always wondered why Petrocelli Electric and Wesbach Electric seem to be the only companies you see when street lights need repairing. DOT is certainly to blame for not encouraging more competition. I smell hearings on this issue.

T (not verified) says:

That is if you even see them repairing... they should do an audit on how long it takes for lights to be repaired. Ever since they took over for Hylan, there has been a lot of funny business going on. I bet 311 records would tell a lot.

anonymous (not verified) says:

ain't it time to fire chuck's wife?

Anonymous (not verified) says:

So, Bloomberg says that this is a federal investigaton and that the city has no part of this. Newspapers report that DOI IS involved in the investigation. Funny however, that Bloomberg is distancing himself from this ongoing investigaton. It is equally interesting that the DOI commissioner, who is notorious for taking credit for other agencies work (just ask anyone in law enforcement who ever worked with her)and who issues press releases at the drop of a hat, has not said boo concerning this corruption involving a city agency.

What is Bloomberg worried about? just asking, I really don't know.

Anonymous says:

Liu is actually having hearings on the stray voltage matter today.

Cranky Independent (not verified) says:

(I always wondered why Petrocelli Electric and Wesbach Electric seem to be the only companies you see when street lights need repairing. DOT is certainly to blame for not encouraging more competition.)

Electrical contractors do not exactly queue up for public work in the middle of a construction boom. My guess is that there have been quality problems and over-runs on any job involving electricians. There aren't enough of them who are competent.

New York City has a school system that for 30 years only bothered to educate those who tested "gifted" or had connections, depositing the rest in the social landfill. I guess McDonalds can train on the job, but electrical work is a little more complicated.

I'd expect more bid rigging in a bust than in a boom. Bribes to foregive contractural non-performance are more likely today.

Emma44 (not verified) says:

Actually, Local 3 is hemorraging jobs as more and more electrical work in the city is done by non-union contractors, who are better and cheaper. Most of the current construction jobs are non-union. All of the Local 3 A Division (electricians) are on 22 week furlough. They work for 30 weeks a year. The contractors that employ them are hurting. It makes a lot of sense for the union to try to preserve their cash flow by ensuring that some union contractors get rigged-bid jobs. And the City plays along....

JOSEPH D'INTRONO (not verified) says:

THE DIVISION OF STREETLIGHTING HAD MORE THAN THREE CONTRACTORS FOR MANY YEARS,SOME DID NOT PERFORMED AS WELL AS THE BIG GUYS(WELSBACH AND PETROCELLI). THEY ARE THE BEST TRAINED AND WILL MAKE ANY REPAIRS ON THE CITY ELECTRICAL SYSTEM. THE ITEM PRICES FOR MAINTAINING AND REPAIRING THE 300,000 STREETLIGHTS ARE NOT THAT HIGH. SOME BORO"S MAY HAVE HIGHER ITEM PRICES FOR SOME REPAIRS, BECAUSE OF THE HIGH VANDALISM ON CERTAIN EQUIPTMENT.

JOSEPH D'INTRONO (not verified) says:

THE DIVISION OF STREETLIGHTING HAD MORE THAN THREE CONTRACTORS FOR MANY YEARS,SOME DID NOT PERFORMED AS WELL AS THE BIG GUYS(WELSBACH AND PETROCELLI). THEY ARE THE BEST TRAINED AND WILL MAKE ANY REPAIRS ON THE CITY ELECTRICAL SYSTEM. THE ITEM PRICES FOR MAINTAINING AND REPAIRING THE 300,000 STREETLIGHTS ARE NOT THAT HIGH. SOME BORO"S MAY HAVE HIGHER ITEM PRICES FOR SOME REPAIRS, BECAUSE OF THE HIGH VANDALISM ON CERTAIN EQUIPTMENT.

The Inside Guy (not verified) says:

Web Search turned this up, hence the untimliness of these remarks. I am an inside guy - and here's the REAL scoop and the skinny on all that's been happening with these contracts.

First - Local 3 "A" division is indeed furloughing - but not 22 weeks, it's 10 weeks. Which is just 4 more weeks per year each member must be off more than when there are no furloughs, when they'd all be taking 6 weeks vacation anyway. The added bonus other than another 4 weeks off, is that the State department of Unemployment is paying the members for 10 weeks per year, so the men do not have to dip into their vacation funds.

As for the number of contractors who bid or end up bidding or get awarded the contracts, that's all a dog and pony show and always was. No matter who wins the contract, the SAME MEN do the work and simply move from whichever contractor HAD the contract, to whichever contractor GETS the contract. (The trucks go too, more on that later...) The only thing that changes (sometimes) is which foremen you're working under.

As for the propensity for the same contractors seeming to win the bid each time - that's because not just any Mom & Pop "ABC ELECTRIC" can bid on a 40 million dollar contract, get a performance bond from a bank, and go out and buy 12 bucket trucks, 8 heavy equipment post trucks, polesetters, dump trucks for digging, and have local yard space to keep secure stored city property (millions of dollars worth of poles and traffic signal equipment.)

Further, in order to maintain traffic signals, the DOT requires IMSA (Int'l Municipal Signal Association) certified maintainence electricians, as well as certifications for repairing ASTC controllers. There isn't a nonunion contractor who himself has the capability of learning all that AND getting his men certified as well, purchease all the required equipment, spare stock, parts, all for winning a lowly 2-year contract he may never win a bid on again.

MOST nonunion contractors aren't and never even were electricians - they're mostly investors and businessmen who bought their license by claiming a principle of their corporation is the licenseholder. That principle, who MUST oversee and supervise ALL electrical work done under his license under NYS law, is most likely a silent partner and is most likely found on his boat in Miami, not anywhere near NYC.

As for the poster who mentioned bribes for non-performance forgiveness - you hit the nail on the head. The DOT was paid off well - and now that McLaughin is behind bars and much (but not all) of his lackeys are laying very low, the city is no longer getting it's plain brown envelope. As a result, and anyone can verify this through the DOT - the city has been sending defect tickets to the Queens Traffic contractor to the tune of over 40 defects PER DAY. Their inspectors are looking at every intersectiopn with a fine tooth comb and reporting everything the contractor got away with NOT doing for these past 8 years.

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