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HomeMy WebLinkAboutRS01-City Administrator - - - -- --- -- r C I '1' Y trEGL!,'"" OF SAN BERNARDINO IN'1'EROFFICE MEMORANDUM tfj ~~" 8602-612 In "',..., '''I -......, " p ~ :1 ') ,~ TOr RDA Commissioners FROM: Raymond D. Schweitzer, Deputy City Administrator SUBJECTr Prevailing Wages DATEr February 10, 1986 (6616) COPIES: --------------------------~..~.~------------------------------ At the January 13, 1986 City Council meeting, the staff was requested to make a recommendation on the above subject. BACKGROUND The City of San Bernardino as well as all other governmental entities in the country were required to pay prevailing wages on projects where federal funds were used. This was a basic requirement of the Davis-Bacon Act. Under this legislation, all contractors (sub-contractors) were required to submit certified payroll records to the contracting agency. Further, the City required payment of prevailing wages under the California Health and Safety Code (33423) and the Labor Code (Little Davis-Bacon). The City's Redevelopment Agency subsequently designed all of its -boilerplateft forms to reflect the above requirements. This practice was carried forward through inertia even though there has been a sharp reduction in the amount of federal funds received in the Agency and prevailing wages are not required on locally funded projects. Recently this matter was brought to a full public hearing. ANALYSIS A very recent survey was conducted in the area cities redevelopment agencies with the following results: 1. San Bernardino County Housing Au~hoxjiY: Avoids prevailing wages where legally possible. Claims it adds 15-22% cost to project. e~-J r "".'" INTEROFFICE MEMORANDUM: 8602-612 Prevailing Wages February 10, 1986 . Page 2 ( 2. Riverside: Requires prevailing wages as required by federal and state laws only. 3. Rancho Cucamonga: Same. 4. Ontario: Same. 5. Qpland: Same. 6. Fontana: Same. 7. Colton: Same. The City of San Bernardino does not have a wage determination by the U.S. Department of Labor for this particular S.lSA. Instead, the Los Angeles labor rates are being used. Please see Enclosure I -- Local Wage Survey and Enclosure II -- the LA Wage Determination. Note that there is a large disparity. A random selection of a few examples will serve here to show the difference between a Community Wage Rate Survey for the Inland Empire vs the .Prevailing Wage" determination (of the LA area): Inland* Empire Lift Truck Operator $7.29 - 9.55 (4) $9.43 - 12.97 (5) Heavy Truck Driver Lowest Paid Truck Driver Light Truck Operator $6.72 - 7.81 (5) $6.78 - 8.78 (5) $5.87 - 8.54 (5) Warehouse Material Handler Warehouse Clerk Prevailing** Wage $18.05+ (7) $16.11+ (21) $15.97+ (21) $16.36+ (21) (' ( IRfBROrFICE MEMORANDUM I 8602-612 p~ev.l11ng Wages . February 10, 1986 Page 3 Spray Painter $6.45 - 8.77 (7) $18.62+ (97) *Enc1osure I **Enclosure II ~he prevailing wage in all cases is over double the actual wages being paid in the Inland Empire! In a recent Labor Department legal opinion, contractors would have to pay prevailing federal wages on BUD-assisted commun- ity and economic development projects, even if federal funds are not spent directly on construction. The recent DOL opinion, on applicability of the Davis-Bacon Act to the community development block grant (CDBG) and urban development action grant (CDBG) programs, could substantially increase costs of many projects now planned or under way. It could also jeopardize the financial feasibility of pro- jects which rely on use of CDBG and UDAG money to leverage private investment for construction of new business facili- ties. HUD's position, up to now, is that if the use of CDBG or UDAG funds is restricted to nonconstruction aspects of a project, such as land acquisition or purchase of machinery and equipment. Prevailing wages need not be paid. Various opinions by BUD's general counsel have excluded payment of the higher federal wages where funds were used for activities that were only incidental to construction. In a July 31 reply to Georgine, DOL Deputy Under Secretary Susan Meisinger said that, in Labor's opinion. Davis-Bacon APplj~p.pp~_~ply_~~__i~ndp.~~~. .~P~p_~~~ectly to pay for ~onstruction ~i~_b~jlQin9J-b~t also .when those funds are ~~~.fpA-9~er activities which are iD~~~~lJY~nD-proximate- lY_A~l~t~d. tP.th~t_~pp~t~~ctipnJ_~y~P-if_p~_f~Deral funds are .e1q>-E!I1ili!D..Jli.J".es:tlY. ip~ the cpn..s.t..Illcti on work.. She cites an example where CDBG or UDAG is used to acquire land on which construction is later to take place. Construc- tion should be done with Davis-Bacon wages, she says, even if all UDAG or CDBG dollars had been spent before construction begins. Construction would be impossible without the prior federally financed purchase of the land, she reasons, creating a r ( IIft'BROFFICE MEMORANDUM: 8602-612 Prevailing Wages ,February 10, 1986 Page 4 ~~~~t~-LIlationship- between site acquisition and the construction of the building.- ~his essentially ~eans that such other expenditures trigger- ing the Davis-Bacon Act could include architectural and engineering fees, materials, and equip~ent or machinery to be installed in the building. CONCLUSIONS It appears that the San Bernardino and Riverside do not have a wage determination. And, if they did, the prevailing wages would be considerably less than the current LA prevailing wage determination required by the Davis-Bacon Act. By using the required wage determination, the City's RDA becomes a party to creating a local community short term wage spiral during short-term projects. Since federal funds have been somewhat curtailed and in all probability will dry up, and the City should be developing its public/private partnership~; it is my feeling that San Bernardino should live .within its means.. The City should compete within in the Inland Empire and not require Los Angeles wages! In a short matter of time, San Bernardino will be required to pay the LA Metro wages as the metropolitan area moves slowly to the east. But until that time, the real attraction for industry, business and potential residents is the low cost of land and the plentiful supply of reasonably priced labor. Until the City is completely economically independent, it is advisable to keep as many costs as low as possible in order to continue to attract desired growth. RE.C..QMMENDATION That the Mayor and Council as well as the Community DevelOp- ment Commission pass a policy which would limit the payment of prevailing wages to only those projects and expenditures required by State and/or Federal law. All other funds for capital expenditures should be exempted from the prevailing wage rates. RAYMOND D. SCHWEITZER Acting City Administrator (' ( ...... ...... === ...... c.- ... tlu..... ..... M~I ".\lall .... ....1. ' ...,..... ..... .... ' -.... (' IIAINftNANOI AND __IIANIlM 01 ~IIII'ICA'IIONI . AUftM01..... MlCHANIC .r..... ..... - AIllllllllll.... . . .,... I'ua ..,ua - 1"" , , ..", '<'lJlIIrbt I 1. . . . . t1"lrr~utIeturlIlt . 11 . . . . IIt8Ml1111l1I1e1dtl1Ut11 Ra_ . 11 . . . . "'17 "'11IIlIMd MltllllluIII Rail. . 11 . . . . ,D,84 COMMOlIIIMOl'IIl ....... ..... . A1ll1ll1umle. .. 7 - . ..,. ,1.0, 11.00 - uo ..MlllMurbt 4 . . . . . ...........1tUrlnI . ,.. . . . . IIIIIIIlIlIIlI MlIlIllluIII Ralo. I 7 . . . . '7.14 ....~11IhId MllllllluIII Ralo. I 7 . . . . 1.01 .lAN1TOII Current Raloo . All Induetrll. .. 12 'II . ..,4 . 1.10 . ..72 . 7.11 MI.......r1Il. 11 41 7.2' 1.71 I. . "'. "'~"urIn. .. I '4' UO 1.10 1.71 . 7.11 II10blllhltl Mo"IIIuIII Relll .. 11 ,n 7.11 1.10 "'0 . 7.11 . 7.72 I..o,,".hod Mlnllllum tI"lI .. 11 171 1,43 U! U! - 1.4! !.I' TtlUCK Ol'EIIA Cu...nt IIltll - All InduII. I 74 . ...4 . 7.10 . 7.10 - '1.12 Mlnufl.tu.lng 3 4' + + + + Nonmlnuf..lu.lng 2 13 . + . + till "III hid MIAlmum 11"11 4 41 + + + + . ...! Jeto"llIhod Minimum 11.1.. 4 41 . . + + 7.21 MAINTENANCE CAIII'ENTER Cu...nt Ret.. - All Indull.I.. . 't4 '''''0 "2.14 ..... - 'U! Monufoctu.'n. I . . . . . Nonlllll\ufl..urlnl 'I . . . . . IIIObll.hed M'''IIIum lilt.. 4 '2 . . + + '''.n 11I.,,".hod Minimum lilt.. 4 '2 + + + + '.71 MAINTENANCE ILlCTIIICIAN Currenl Rail. - A1llndu".I.. 12 13 "1A7 l'U7 '10.'2 - 14,4' M.nufactu.lnl 10 31 . '2.72 '2.12 11." - ,4,4, Nonllllnufo.lu.lnl 2 ,2 .. . . + 1"'''"lhod M'Almum 111111 . " + + . + ,,1.1, Iltl"lilhod MInimum ""11 . " . + + + 1.44 MAlNTINANCE MACHINIST Current Ret.. - All Indu'I.11I I 24 "O.l! "0.12 . ...0 - '2.I! M.nuf.ctu.lnl 4 17 + + . + Nonmlnuf..tu.lnl , 7 + . + + l.t'''"lhod MIAlmum lilt.. 2 '1 + + . + "1.20 ....b11a1lecl Mlnllllum Ret.. I '1 . . . . 1.47 j , IIAINTINANCI MICHANIC I ; Currotlt Ilat.. . A1llndu...... I' ,,. .'OJ2 .,o.a2 '10." - '1.17 , , Mlnufoctu.1nl 17 '07 ,OJO 10.12 '0.11 - '1.10 , Nonllllnuf.ctu.lnl 4 11 + + . + 1"lbll.hItI Mulmum 1111.. '4 II 'U7 'U7 10.02 - '4,40 '''''2 I.t.bl.hod Minimum Retl. '4 II . ..... UO 1.10 7.03 .' '.'1 ,- '.'4 , --- . '-- ' " . ~I.,-..... .. _ ._r._t.....~ _W__III.' e~l-r COMMUNITY WAGE RATE 'UIWEY~D 'MPI~ - ,..0 4 r ( ......,,/ ,,--' ...... ..... == _r- c:-- ..... ....... ....... ... QlI1.n......... ..... ....- ..~ ....... .... Al.ra,... C~. MAIN'IINANCI AND 1lA1IIlIAL IIANDUNG a.~'1lPICA1IONI1C nllRutt!) MAINTINANCE. GENEIW. c:.m.nt ..... - NllncIlIItrle. 10 24 IU7 1'.10 I ..,1 .... . ............. .. I 11 '.11 U4 UO - ..10 ...-.....urIntl ... . + + + + 1et8IlI..... Mulmllm 1Ia... ,. '20 t.ll t.l8 ..71 - .... . 1.1' Eat.bli....d Minimum "".. 8 10 7.37 7.17 11.11 - 1.11 1.48 PACICEIl - c:.m.nt "".. - Alllnduatrle. 11 13 .7.13 '7M 11.13 - 1.14 "'nufectu""" 10 10 7.34 7M 1.13 - 7.71 liIonmeIlufMturlnl 1 J . + . + ........hed Maximum lie,.. 8 115 8.DO .7.05 8.71 - 8_ I 1.20 ...........d Minimum lie,.. 8 55 5.12 11.11 4.51 - 1.13 5.70 SHIPPINGlRECEM'NG CLERK Cumnt RII.. - AI' Inllult.... 21 118 18.41 . 7.43 . US - US "'nufec:turinl 11 41 8.06 7.35 US - U4 Nonmenuf.cturl... 2 7 + + + + Eat.bllehed M..lmum R",. 17 49 1.11 1.27 7.04 - 10.37 . 8.60 Eat.bli,hed Minimum R",. 17 49 6.87 5,85 5,07 - 8.07 6,42 STOCK ROOM CLERK (PLANT) Current Ratel - All Industries 7 24 $10,16 $10.99 $ 7,78 - 13.11 Manufacturing 5 15 9,49 7,78 7,78 13.29 Nonmanufacturing 2 9 + + + + Established Maximum Rates 4 16 + + + + $ 8.54 :stabli.hed Minimum Rates 4 16 + + + + 5,87 HEAVY TRUCK DRIVER Current R.tes - All Industries 7 81 $11.96 $11.27 $10,52 - 14.13 Manufacturing .. 5 51 10.92 10.52 10.52 - 11.27 Nonnwnufacturing 2 30 + + + + EIt.bli,h.d M..imum R.t.. 3 44 + + + + $ 1 2.97 bli.hed ates 3 44 + + + + 9.43 UGHT TRUCK DRIVER Currant "'-tel - All Industries ... 6 17 $11.90 $13.88 $ 8.68 - 13.88 Manufacturing 5 5 + + + + Nonmanufacturing 1 12 + + + + .Established Maximum Rates .. 6 17 12.09 13,88 8.68 - 13.88 $ 7.81 Established Minimum R. 6 17 ll,3S 13.88. 6.72. .- 13.88 6.7.2.- WAREHOUSE MATERIAL HANDLER Current Rates - All Industrie. 12 55 7.53 $ 7.00 $ 5,70 - 10.18 Manufacturing 8 28 7.15 6.91 5,90 - 8.35 Nonmanu'acturing 4 27 + + + + Established Maximum Rates 11 52 8.39 7.50 6,89 - 10.18 $ 8.78 Established Minimum Rates 11 52 6.19 4.80 4.05 - 7.97 6.78 " E,IC % L Cout;o. - _, .. ....... .' ....1..... .._ br _ CO.....Y . ......icieft, ..,. COMMUNITY WAGE RATE SUR~NLAND EMPIRE - 1885 ~ & r ( - ~ '<-.... ...... ...... == ....,.. c:-- ..... ..rIIIe ....... .... ~f1I- ........ .... "~..-' All.,. -.,.- .... A.."'I e ftlODUCI1DN a AIIlfICATIONI II.ICTIIONIC ANDIOIIELECTIIDMECHANlCAL ASSEMILER -SEMISICILLED c-... ...... - All........... .. . II .,D.D1 "1.1' IUI - 11.12 ............... .. . II tD.Dl '1.11 .... - tUZ .....1I8heII Mulmum !let. .. . II ".. 11.11 10.74 - tUZ .IAI ....1lIIIMd Minimum !let.. .. . II 7.11 7. 1.44 7.11 U4 MECtlANICAL ASSEMBLER -MINOR IICJUS c-... ...... - All ,,",uet... .. I ISO . 1.20 '1.40 11.41 - 7.21 MenutKturlntl .. . ISO UO UO ..41 - 7.28 .....11...... .....mum lie,. .. . 241 7.IM 7.28 .... - 7.28 . 7.11 ....bIiIhed Minimum Re,.. .. . 241 US 1.70 1.70 - J.70 4.n MECHANICAL ASSEMlLER -SEMISKILLED Current lie,.. - All Indu",l.. .. I 118 111.74 112.82 112.47 - 12.82 .nut.cturinll *. I 118 11.74 12.82 12.47 - 12.82 Eet.bl.....d ....lmum lie,.. 4 105 + + + + "1.45 &teblilhed Minimum R.,.. 4 105 + + + + 7.71 GENERAL MACHINIST CPRODUCTIDNI Current Retel - All Industries .. 10 88 111.85 $12,50 $ 9,77 - 14,12 Menuf.eturing .. 10 88 11.85 12.50 9.77 - 14.12 Eatlblilhed M.ximum Retes .. 9 86 13,84 14.12 13.22 - 14,12 $12,76 EII.blished Minimum Retes ... 9 86 9,31 9.50 9,50 - 9.50 8,77 INSPECTOR. ASSEMBLY ':urrent Rites - All Industries 9 66 $ 9.0S $ 8.31 $ 7.05 - 10.32 , Menuf'eluring 9 66 9.05 8.31 7.05 - 10.32 , Esteblilhed Maximum Rates 7 57 10,05 7.92 7.58 - 14,10 $ 8.80 Esteblished Minimum Retes 7 57 6,69 6,00 4.57 - 9,47 5.91 INSPECTOlI. PRECISIDN MECHANICA1. Current Rate. - All Industries .... 6 35 $ 8.87 $10.63 $ 8.24 - lD.75 Uanuf.cturing .. 6 35 1.67 10.63 8.24 - 10,75 Established Maximum Rates All 6 35 10.64 10,75 10,75 - 12,41 $10.99 Established Minimum Rates ... 6 35 7.10 6,46 6,46 - 8,70 7.74 MACHINING MACHINE OPERATOR CLATHES.MILLSI Current Rlt.. - All Industries 9 69 $ 9.72 $ 8.79 $ 8,13 - 11.59 -Manufacturing 9 -69 9.72 8.79 8,13 - 11.59 Established Maximum Rates .. 7 52 11.97 12.41 11.59 - 13.10 $10.74 Eat.bli...ed Minimum-Retes a* 7 52 9.t4 8.10' 8,10 .~ 11.06 8.14 PRODUCTION MACHINE OPERATOR Current Rates - All Industries 12 197 $ 8,50 $ 7.04 $ 6.51 - 11.07 Manufacturing 11 186 8.67 7.28 6.51 - 11.07 Nonmanufacturing 1 11 + + + + Established Maximum Rates 8 150 8.66 7.04 6.51 - 12.55 $ 7.93 E-ublished Minimum Rite. 8 150 5.25 5.07 3.78 - 6.93 U9 PRODUCTION WORKER Current lie,.. - A1llndult,i.. 12 226 $ 7.33 $ 1.85 $ 1.85 - 8.50 Manufacturing 11 209 7.54 7.39 6.85 - 8.50 Nonmanufacturing 1 17 + + + + Established Maximum Rates .. 7 138 7.45 6,85 6.85 - 8.25 . 8.25 Established Minimum Rates .. 7 138 5.60 5.8S 5.85 - 6.04 5.26 (' '--- .. CeuUon . ....r 40 percent of employee. ..ported by one CO"'Plny . ......6cie..t... COMMUNITY WAGE RATE SURVEY - ~ EM~IRE, - 1880 6 r.".r r C ...... ...... =c" ....,. c-- ..... ...,.. ....... ..... 'Cl'1 ..tIeR ....... .'''1.1__ A\lfllt It..... . ...... ....... c: PIIODUCIIDN C1l1llllrJU.lIIINICC. .11> u.. SPMY PAINTIII ""0DUCTl0N1 c.r- ..... . MllllCluetriN .. . 14 I 1.71 . 1.10 . '.71 - lUI tll f.......... . .1 . . . . .111 JIl.nuta..... 1 I . . . . ....t ".f... .....111 ...... . 12 . . . . . 1.77 bliahad Mildmum Rat 1 12 . . . . 1.41 TOOL otM) DIE MAICElI c:.r- Ratea - All ..duet... 11 18 112.152 "1.10 "0.10 '. 14.12 ..........turInI 11 18 12.152 11.10 10.10 - 14.12 ....Wlahad MaIIImulII Rat.. I 11 12.11 14.12 1UJ - 14.71 "2.11 ......lahed MllllmulII Rat.. I 11 1.16 .1.10 ,. - 11.10 1.30 WEUIEll. ARC AND GAS tv...", Rat.. - All '"du.tri.. .. '10 113 $10.80 $11.12 $10.11 - 11.12 M.......cturill. I H 1.11 1.12 7.155 . 1J.01 N_II....ctu"'" 1 127 + . . . ............d Melll...u... Rat.. .. I 147 11M 11.12 11.12 - 11.12 111.17 Eatebliahed Minimum RIIt.. .. . 147 7.12 7.&2 7.12 - 7.82 7.13 r , '- .. c....... - ewer .-0 ..mftt of ern"OJIMI ..,.rted trr .... .........y . ....1ffI6deft.... z; .-. ~ - COMMUNITY WAGE RATE SUR~NLAND EMPIRE - 'V 7 " - , ItA1I Of CAUfOINA c'-' ......1.... ' ( ....." 0t0lI0I 1t_N. _ ..AlltMINI Of __I .1A1ION5 DIVISION OF LAlOR STATISTICS AND RESEARCH .S GOLDIN GA1I AVlNIll IAN .....NCISCO , , It.t'O.-lOM'''' Off. \9$ fEB \0 ~ 16: 01 ADDllSS 8l'11 TO. '.0, lOX 1103 IAN '8ANCGCO. CA NIOI e !~ - " ": /' . " (415) 557-0561 ';i.. '{ ~ :. i ~.'I '. ", .. /' AugU8t 22, 1985 ~ If :: :, \.. '.'0".: ; : ; . ~'" Dear Public Of Udal: Under California Labor Code Section 1770, the Director of the Department of Indu8trial Relation8 i8 responsible for determining the general prevailing rate of per diem wages for each classification of worker employed on a public works project of $1,000 or more. The Director iasues on a quarterly basis general prevailing wage determinations for those crafts normally associated with public works construction. It is required under Labor Code Section 1773.2 that the body awarding any contract for public work to either specify in the contract, call for bids or bid specifica- tions, the wage rate for each craft, classification or type of worker needed to execute the contract or in lieu of specifying such wage rate, the awarding body may in such call for bids, bid specifications, and contract include a statement that copies of the prevailing rate of per diem wages are on file at its prin- cipal offices, which shall be made available to any interested ~arty on request. Because of these legal requirements, the awarding body must have the appropriate wage rate for each craft, classication or type of worker before the commencement of the call for bids. Please advise potential bidders that any contractor who is awarded a public works project and intends to use a craft or classification not shown on the general prevailing wage determinations, as, be required to pay the wage rate of the craft or classification most closely related to it as shown in the general determinations effective at the time of the call for bids. If you cannot find a job classification needed to execute a contract in the Director's general prevailing wage determinations, please contact the Division of Labor Statistics and Research, Prevailing Wage Unit, P.O. Box 603, San Francisco, CA 94101, (415) 557-0561. Because it may necessitate a wage survey, you should allow 30-45 days prior to the bid advertisement date for such requests. Include in your request, the project name or bid number, the classi- ficatioDs Deeded, job description, if available, "the bid advertisement date, and location of the project(s). If you are not on the mailing list to receive the minations, but want to be included, evailing wage deter- ementioned office. ~ Co los'^-'C ~ 1t. . .. v- -'\l._'......IMW~ MD_....... - ..... _:11.. - ~ Dl~ II .: et.......... - -, .......- ........ .... ...... *Ul...........; ............,......................~......A................A~ .1.... ............,..........__ --..,............ ..1tiA-__-~............ __........ c....t.. DhWon.. ~.................................. ~, __-.....I.Iowo>.-........._.-..._....._ollo.......LWClIIIopo._-....__ -- .........- ........- --- o.utficMion --. - - "_ionl T........ Olho, ....... T..., Dolly -. - UOl J4.,.,.,., -- ... - - -... ... - - - '","' .. ''''" .. - ..,.-7_ , -' .-. ...- '..- .- '.'.10 111.0. "... a.a 11.aD US - - _2 - IAf> ... ,.aD .to -. .. .1'.... - '- ...... '- -, .... .... ... ,.aD .to -. ..17 .... - .... ..... 'D.2I -. ,.... .... ... '.aD .IS -. .," .- ...... .... ....., 'D.Cl -. - .AO US 1.10 .IS -. ..... 'JU2 ....1. .... -..)1 '..... -. ,.... U5 1.35 ,.aD .a -. ..... '15.IIS '6.03 '.- ...13 '''.12 llnIup 7 '1.21 .... US 1.10 .a -. .6.0. cI6.'1S ".77 ...115 -..77 ,.... -. '1.3' US ... 1.10 .a -. ",73 '11.02 ..n '11... -.." '... Gloup' ,..., US ... ,.aD .IS -. .... ...." &37 II..'" ....17 '... ........IPP'.. ., ..........cr-'E. ....1Dr__.&-wIIl...........upon~. . For d...tfationt within Nth group,... foIlowing~. II Where the AWARDING MlD'Y (i.... Cttv, County, s.e, 01' other .o..'"'.~.,tal eoencvl ..-err... in the cella for bid&, the biclaptelfation.. and the conttKI. teN" that the work an onrv be "rformed outaide the Nguler WOftinQ houfw; .. definM!' tn the apPIiclble colleelive blirOlining aorwmertt filed with the DirKlOr of Industrial Rel.rions In KCOrd. .nee with Lebor Code $ectior'l 1"3.1,1he DWrtimt requlrementt fot Seturd...,.... Sundays, and hohdaVlINY be wajyed, HowIwr. thit ..."'phon ah81! no1 NU"' the O\iIeI1ime ~ ~lfted in Labor Code Section 1'15. - ..L4~: '" ~ wfth LIII:lor Code SIction 1m. ~ 1ClO"-..____-.._-....... ....-....-,.,-....--- ........,......... cnft.' ~ ....,.. _..... ~ on .. PftlilciltIhklh.. cn.~" ElRcDcI............... - - . ........ ~-~~ c-........_ Clper'IID (-'-'.....ewa..(I)IDOOAIarIllrv-Wlb.dIIIonaJ __I Dftch M::h.wIIh.-l or...._~ -__I EnaO-llOoI ~U1_ _'__1 -- &er.r.Ior.fVnporCt........_ ,.,.. ~ HlevyDuty fL.,.....nNI..... ~- 89......... 8_1:kI.._. ~. Cloo.-__. ...._ ~- F_ ,.... -- -.CrlloIwo _or__l ~DoII__) .. '.' ~ -..... _ ..,,10.. I'd,.............. __T_ T......_ T-"'Y___ T-..._oo. _.0...00. E,Ic, 11 CIYl. .pplintothe firwt 4lNertirne hours IIRl:t..ppI... 10 the fim 12hou..worbd. . Rate ,1100 ,pp1_ to wort on Sundtlys end the ,.."..inder ofSlturd.v. t Rete .pplies to hDlidevs .nd the fi,., Sltutdly foIbwing the fim Fridev in 1ht monti'll of June.nd December. 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"'''L MIl_ _u un. MC'IMlIID ........ ....... ..... .tnett am, ...n.....IOI...........l -.w,,~ ....LT _ .". .....u. N1D .....U M AU _lW'. Ilr~n' 1M 1111 couleuw ........ .'N'" ""Uuell '" ,. "UCUUI oarl. CloUIlrauQat. . "" . _n ~.. .. ,. fM.IrCT .1011' .. flU .. 1111 "Ie"" . _nUL MLA'_. ...."', aNI _..TICt ...."".. ... c.na1tTlll _UIIIU ft'WL .. ....I"rIC. ......"." IMII....,. ."0'" m:CU1I _ _. AI ILb .....WL .. "'UTlCI ....."'1 All 11"1"0 ... tNl "'I.ICMU "UCTM ........ ......", 'lI.l. ...... _ ...C'T'Itl . ....ltraL ..un.. ... ~I III'" ... &all .en.. 1"'.1. ~ .~ JfII:.. . # ---------,-~,.~-_..-. - - - c '- ""'__ REDEVELOPMENT AGENCY-REQUEST FOR CO_ISSION/COUNCIL ACTION "' 'm: Glenda Saul, Executive Director Subject: PREVAILING WAGES ,-' Dept: Redevelopment Agency Date: February 10, 1986 Synopsis of Pravious Commission/Council ection: 1/13/86 Open Hearing - Directed Agency ataff to seek proposals for study and to ascertain practices of other Redevelopment Agencies. Rscommended motion: COMMUNITY DEVELOPMRNT COMMISSION 1. Receive Data. ~ 2. Decide on Wage Study. ,~M Signature Glenda Saul Contect person: Supporting data atteched: YES Phone: 383-5081 All Ward: N/A All Project : February 17, 1986 FUNDING REQUIREMENTS: Amount: $ No adverse Impact on City: Data: .lcil Notes: 39:Jb/l'll 2/17/86 AnAnrl~ l'tAft'\ Nn R.t:::-I ,ctry OF SAN BERNAR~O - REQUt:$T FOR COUNCIL AC'I10N STAFF REPORT At the Public Hearing on Prevailing Wages, held on January 13, 1986, the Agency staff were instructed to: 1. Question other Redevelopment Agencies in our area concerning their practices, and 2. Contact nationally known consulting companies about a study to determine the economic affect on the City if a prevailing wage clause were included in all agency agreements/contracts. We sent the attached questionnaire to six nearby redevelopment agencies. Five replies are shown. In Colton, the acting City Hanager/RDA Director was vacating the position and did not answer. In an earlier telephone survey on question B, alone, he, like the others, answered MNoM. On the second item, we contacted four of the MBig EightM accounting firms which have government services divisions. Three indicated they could not consider the study until the tax season is over, at lease six months. DeLoitte Haskins & Sells submitted a proposal as well as Ralph Anderson, copies attached. The City Administrator contacted a dozen or so smaller firms. Three expressed interest. We anticipate a proposal from either Arthur Young and Associates ~ (Los Angeles) to date it has not been received. Also attached is the City Administrator's report. The recommended action is the adoption of a policy which would limit the payment of Prevaling Wage Rates to only those required by State and Federal laws. "-' 75-0264 395G/MT 2/17/86 , ,",,, ,~ '--- C I T Y 0 F SAN B ERN A R DIN 0 INTEROFFICE MEMORANDUM 8602-612 TO: RDA Commissioners FROM: Raymond D. Schweitzer, Deputy City Administrator SUBJECT: Prevailing Wages DATE: February 10, 1986 (6616) COPIES: At the January 13, 1986 City Council meeting, the staff was requested to make a recommendation on the above subject. BACKGROUND The City of San Bernardino as well as all other governmental entities in the country were required to pay prevailing wages on projects where federal funds were used. This was a basic requirement of the Davis-Bacon Act. Under this legislation, ~ all contractors (sub-contractors) were required to submit certified payroll records to the contracting agency. Further, the City required payment of prevailing wages under the California Health and Safety Code (33423) and the Labor Code (Little Davis-Bacon). The City's Redevelopment Agency subsequently designed all of its wboilerplateW forms to reflect the above requirements. This practice was carried forward through inertia even though there has been a sharp reduction in the amount of federal funds received in the Agency and prevailing wages are not required on locally funded projects. Recently this matter was brought to a full public hearing. ANALYSIS A very recent survey was conducted in the area cities redevelopment agencies with the following results: 1. San Bernardino County Housing ~~hQrjty: Avoids prevailing wages where legally possible. Claims it adds 15-22% cost to project. ............ ~ ---,,-- - - ,,;,., -- INTEROFFICE MEMORANDUM: 8602-612 Prevailing Wages February 10, 1986 Page 2 '_",J 2. Eiverside: Requires prevailing wages as required by federal and state laws only. 3. Rancho Cncamonga: Same. 4. Ontario: Same. 5. Upland: Same. 6. Fontana: Same. 7. Colton: Same. The City of San Bernardino does not have a wage determination by the U.S. Department of Labor for this particular SMSA. Instead, the Los Angeles labor rates are being used. Please see Enclosure I -- Local Wage Survey and Enclosure II -- the LA Wage Determination. Note that there is a large disparity. ," - A random selection of a few examples will serve here to the difference between a Community Wage Rate Survey for Inland Empire vs the -Prevailing Wage- determination (of LA area): show the the Inland* E111Pire Prevailing** Wage Heavy Truck Driver $7.29 - 9.55 (4) $9.43 - 12.97 (5) $18.05+ (7) Lift Truck Operator Lowest Paid Truck Driver $16.11+ (21) Light Truck Operator $6.72 - 7.81 (5) $6.78 - 8.78 (5) $5.87 - 8.54 (5) $15.97+ (21) $16.36+ (21) Warehouse Material Handler Warehouse Clerk - - ',-' ,# INTEROFFICE MEMORANDUM: 8602-612 Prevailing Wages February 10, 1986 Page 3 Spray Painter $6.45 - 8.77 (7) $18.62+ (97) *Enclosure I **Enclosure II The prevailing wage in all cases is over double the actual wages being paid in the Inland Empire! In a recent Labor Department legal opinion, contractors would have to pay prevailing federal wages on HUD-assisted commun- ity and economic development projects, even if federal funds are not spent directly on construction. The recent DOL opinion, on applicability of the Davis-Bacon Act to the community development block grant (CDBG) and urban development action grant (CDBG) programs, could substantially increase costs of many projects now planned or under way. It could also jeopardize the financial feasibility of pro- jects which rely on use of CDBG and UDAG money to leverage private investment for construction of new business facili- ~ ties. BUD's position, up to now, is that if the use of CDBG or UDAG funds is restricted to nonconstruction aspects of a project, such as land acquisition or purchase of machinery and equipment. Prevailing wages need not be paid. Various opinions by HUD's general counsel have excluded payment of the higher federal wages where funds were used for activities that were only incidental to construction. In a July 31 reply to Georgine, DOL Deputy Under Secretary Susan Meisinger said that, in LAb~~ opinion. Davis-Bacon APplJ.eJ!l. Jl.ot. ~JllY_l!'.n.eJl. , .f.ulUUl. iI~.e. . .u.s.e.cL,.dJ.x:ectly _.t.o pay for ,c.o.ru>trl,lction SJ!J.l>.ujl.QjJl.g.._l>..u.LlUlljL~b.eD.....tbJ)jle funds are J,Ul,etl. f.o.r_o.the.LQ.C.t:j,yjU.es wh i~bJ.rjLJDj;.e.grllJ..lY_i'lls'Lp.J:Dx ima te- ly. ~,elll,t.e.d. .t.o. .t.h.a,t. ~.OI1$t~.ucti ory. .ey.eILJf. JlD. !.et1~l funds are ..exp.ellt1.et1_.Ai~.es:tly. .fPL.t]l~cDDpj;nl.l::.tJ on work.. She cites an example where CDBG or UDAG is used to acquire land on which construction is later to take place. Construc- tion should be done with Davis-Bacon wages, she says, even if all UDAG or CDBG dollars had been spent before construction begins. Construction would be impossible without the prior federally -.. financed purchase of the land, she reasons, creating a \, ;""",,/ INTEROFFICE MEMORANDUM: 8602-612 Prevailing Wages February 10, 1986 '- Page 4 ~p~9~j~1~_x~la~nship. between site acquisition and the construction of the building.. This essentially means that such other expenditures trigger- ing the Davis-Bacon Act could include architectural and engineering fees, materials, and equipment or machinery to be installed in the building. CONCLUSIONS ( It appears that the San Bernardino and Riverside do not have a wage determination. And, if they did, the prevailing wages would be considerably less than the current LA prevailing wage determination required by the Davis-Bacon Act. By using the required wage determination, the City's RDA becomes a party to creating a local community short term wage spiral during short-term projects. Since federal funds have been somewhat curtailed and in all probability will dry up, and the City should be developing its public/private partnerships; it is my feeling that San Bernardino should live .within its means.. The City should compete within in the Inland Empire and not require Los Angeles wages I In a short matter of time, San Bernardino will be required to pay the LA Metro wages as the metropolitan area moves slowly to the east. But until that time, the real attraction for industry, business and potential residents is the low cost of land and the plentiful supply of reasonably priced labor. Until the City is completely economically independent, it is advisable to keep as many costs as low as possible in order to continue to attract desired growth. - ~JlMENDATION That the Mayor and Council as well as the Community Develop- ment Commission pass a policy which would limit the payment of prevailing wages to only those projects and expenditures required by State and/or Federal law. All other funds for capital expenditures should be exempted from the prevailing wage rates. '''ft /<----1 ,~ i. 9f ~,...oJ~ ,"/ ;x:- I {j /,x. tiL-' J RAYMOND D. SCHWEITZER Acting City Administrator _. , ......,...- ,"-,,.. No. of No. of llIlf,toyoo llllor- CoIII- 1m- Wo ,hlod lIIu."11o IIlIlplo ..... CI...ltlutlon "nl.. ....,... Avo,.,. M.lIl.n 110.. ......ro.. ~, '~'...,,"" \ MAINTlNANCI AND IlATlIlIAL IlANDUNO CLAlIIPlCAftONl . AUTOMOTlVl MICHANIC Currant IIot.. - All Inllultrl.. I II '1"" '11.21 '10.11 - 1...1 M.nufHturln, 2 11 . . . . Nonlllllnuf..turln, I I' . . . . Iat.IIU."", M..llIlulll lI.t.. 2 I' . . . . '11.17 Iat.IIU.h.lI Mlnllllulll lI.t.. I I' . . . . 1o.a4 COMMON WOIIIII Currant IIot.. - All 'nllu.trl.. .. 7 101 . '.11 .1.01 . 1.00 - 1.70 M.nuf.lturln, 4 II . . . . Nonlllllnuf..turln, 2 144 . . . . IIl.III1.h.lI M.x1l1lulll lI.t.. 2 7 . . . . . 7.14 Iat.lIl1.hell Mlnllllulll IIot.. 2 7 . . . . 1.02 JANITOII Cu,ront IIotll - All Inllult,I.. .. 21 III . 1.74 . 1.10 . I." - 7.11 M.nuf.lturln, I' 41 7.11 '.7' 1.00 - 7.71 Nonlll.nuf.lturln, .. . 141 1.10 1.10 1.71 - 7.11 IIl.IIU.h.lI M..llIlulll 1111.. .. I' I,. 7.11 1.10 1.10 - 7.11 . 7.71 11I.IIU.h.d Mlnllllulll fllllI .. I' I,. '.41 1.11 I.n - 1.41 ...1 I" TIIUCK OPE~ Cu,ront lI.t.. - AI, IndulI' I 74 . 1.14 . 7.10 . 7.10 - lUI M.nuf.ctu,ln, I 41 . . . . Nonlll.nuf.ltu,ln, I II + . + . -- ,".III1.h.d M..llIlulll 1111.. 4 41 . . + + . 1.11 letollll.h.d Mlnllllulll lI.t.. 4 41 + + + + 7.1. ',~ MAINTINANCI CA PENTIII Cu,ront IIot.. - All Indu.t,I.. . '14 '11.10 'IU4 . .... - 11.71 M.nuf.ctu,'n, I . . + + + Nonlll.nuf.cturln. I . + + . + l.t.lIl1.h.d M..llIlulll II.t.. 4 11 . . + + '11.11 l.t.IIU.hocl Mlnllllulll II.t.. 4 11 . + + + '.7. MAINTINANCE ILICTIIICIAN Cu".nt IIoto. - All Inllu.t,I.. 11 II '11.47 '11.17 '10.11 - lUI M.nuf.ctu,ln, 10 II 11.71 lUI 11.1' - 14041 Nonm.nufacturln, :& .1 + + + + l.taIlU.had M..lmulll IIota. . " + + . + '11.81 l.t.lIl1.h.d Mlnlmulll IIot., . " + + + + 1A4 MAINTENANCE MACHINIST Currant IIota. - All Indu.t,lo' I Z4 'IUI '10.11 . 1.10 - IUI M.nuf.ctur'n, 4 17 + . + + Nonlllonufoctu,ln, I 7 + + + + E.tollll.had Moalmulll II.to. I II + + + + '11.10 lat.IIU.hod Minimum II.to. 2 II + + + + 1A7 MAINTENANCE MECHANIC Currant IIot.. - All Inllult,I.. 21 ". '10.81 '10.12 '10.1' - 11.17 M.nuf.ctu,ln. 17 107 IUD 10.11 10.1' - 11.10 Nonm.nuf.cturln, 4 11 + + + + Eat.IIUah.d M..'mum II.t.. 14 I' 11.17 11.17 10.01 - IUD '11.12 latollU.had Minimum IIotll 14 I' .., 1.10 1.20 7.01 -' '.12 ., '.14 '4__'. ,-. . 'MUff...... tI... .. eoU'leII . _. .. ,....., al a..,.",". ..,..... .. ... _,.., ~ e~~r COMMUNITY WAGE RATE IURVEY ~ND EMPIRE - "I' .. '....),,'~ ........ ",-, No. 01 No. 01 Empl...,.. Int.r- Com- Em- W.i.ht.d quartil. Simple Job CI...ilic.tlon ponloo ploye.. Ave,... M.dion lion.. Ave,... - MAINTENANCE AND MATElIIAL HANDUNG Cl.AIIlI'lCATlONI (ContInuedl MAINTENANCE. GENERAL Curr.nt R.t.. - All Indun,i.. 10 Z4 . 1.17 . '.10 . '.12 - 1.51 Manufacturing -- I ,. '.1' 1.34 1.20 - 1.10 Nonm.nut.cturing 4 I . . . . E.t.bli.h.d M.ll;mum R.t.. .. -ZO 1.21 ua 1.75 - 1.51 . '.1' EIt.bUshed Minimum Ret.. . 20 7.37 7.17 1.11 - '.11 1.41 PACKER Current Rete. - All Indultries 11 83 . 7.83 . 7.05 .123 - 1.114 Manufecturing 10 10 7.34 7.05 1.23 - 7.75 Nonmanut.cturing 1 3 . . . . En.bli.h.d M,"jmum 11811. . 115 ',00 .7.05 1.75 - 1.111 I 1.20 E.t.blilh.d Minimum 118t.. . 115 1.12 5.11 4.51 - 1.113 a.70 SHIPPING/RECEIVING CLERK Cu'rent 118t.. - All Inllun,i.. Zl II . ',41 . 7.43 . a.a5 - '.55 Manufacturing 1. 4. '.06 7.35 US - 1.54 Nonmanufacturing 2 7 . . . . Established MaJCimum R.te. 17 49 1.11 1.27 7.04 - 10.37 1 '.60 Established Minimum Rat.. 17 49 1.17 5.85 5.07 - '.07 1.42 STOCK ROOM CLERK (PLANT) Current Rate. - All Induatries 7 24 '10,11 $10.99 $ 7.7' - 13.11 Manufacturing 5 15 9,49 7.7a 7.7a - 13.29 Nonmanufaeturing 2 9 . . . . Established MaJCimum Rat.s 4 11 . . . . . a.54 'Established Minimum Rates 4 11 . . . . 5.87 HEAVY TRUCK DRIVER Current Rates - All Industri.. 7 al '11.91 111.27 $I 0,52 - 14.13 Manufacturing AA 5 51 10.92 10.52 10.52 - 1 1.27 Nonm.nufacturing 2 30 . . . . Establish.d MaJCim~m R.t.. 3 44 . . . . $12.97 bli.hed ate. 3 44 . . . . 9,43 UGHT TRUCK DRIVER Current Rate. - All Industrie. .. I 17 '11.90 $13.98 $ 8.68 - 13.88 Manufacturing 5 5 . . . . Nonmanuf.cturing 1 12 . . . . .Established Maximum Rates ... 6 17 12.09 13,68 8.68 - 13.88 $ 7.81 Established Minimum R I 17. 11.35 , 13.88. 6.72. .- 13.8a 6.12.. WAREHOUSE MATERIAL HANDLER Current Rates - All Industrie. 12 55 7.53 $ 7.00 $ 5,70 - 10,19 Manufacturing 8 28 7.15 6.91 5,90 - 8.35 Nonmanufacturing 4 27 . + + + Established Maximum Rates 11 52 8,39 7.50 1.89 - 10.19 $ 8.78 Established Minimum Rate. 11 52 1.19 4.80 4.05 - 7.97 1,78 E" c % ~_. C.ution - over CD pe~"1 of ."'plo,.., qported IIy .... compa"y .. I",ufflcient dele COMMUNITY WAGE RATE SURrLAND EMPIRE - 1985 ~ 5 - ""- ....' ,~ .....",/ No. of No, of Employe. Int.... Com- Im- W.i.ht.. "Ullrtlle Slm.... Job CI...ificetion penl.. plo_ A....... .....I.n lien.. A....... -'. --.("..,,- ,. "'DDUCTlON Cl.AISIPlCATIONI ELECTRONIC AND/OR ELECTROMECHANICAl. ASSEMBLER -SEMISI(/LLED Current llet.. - All Industri.. .. 5 51 '10.01 '12.11 .1.1. - 12.12 Manufacturing .. 5 51 10.01 12.'1 1.1. - 12.12 El:tablilhed Maximum Rat.. .. 5 5B 11.25 12.12 10.74- 12.12 . '.4B EltabU,had Minimum Rat.. .. 5 51 7.16 7..6 6.44 - 7.16 1.14 MECHANICAl. ASSEM8LER -MINOR SI(/LLS Cumnt Rat.. - All Induatri.. .. 6 250 . 8.20 . 6.40 S 5.48 - 7.28 Manufacturing .. . 250 8.20 '.40 5.48 - 7.26 EltlbUahed Maximum Rat.. .. 5 248 7.G4 7.2B 6.H - 7.28 . 7.18 EatabUahad Minimum Rat.. .. 5 246 US 3.70 3.70 - 3.70 4.73 MECHANICAl. ASSEMBLER -SEMISKILLED Current Rat.. - All Indultri.. .. 6 118 '11.74 '12.12 '12.47 - 12.12 Manufacturing .. 6 "6 ".74 12.92 12.47 - 12.12 Eltabli.hed MIKimum Rat.. 4 lOS + + + + '10.45 Eltabli,had Minimum RIte. 4 IOS + + + + 7.78 GENERAL MACHINIST IPRODUCTION) Current Rat.. - Afl Indultri.. .- 10 88 $11.85 $12.50 $ '.77 - 14.12 Manufacturing .. 10 88 11.85 12.50 '.77 - 14.12 Established Maximum Rat.. .. 8 86 13.84 14,12 13.22 - 14.12 $12.76 Established Minimum Ratl' .. 8 86 8.31 8.50 8.50 - 8.50 B.77 INSPECTOR. ASSEMBLY '::urrent R.tl. - All Indultrie. 8 66 $ 8,05 $ 8.31 $ 7.05 - 10.32 Manufacturing 8 66 8.OS 8.31 7.05 - 10.32 ""'-'. Eltabliahed Maximum Ratl. 7 57 10,05 7.92 7.58 - 14.10 $ 8.80 Established Minimum R.te. 7 57 6.68 6.00 4.57 - 8.47 5.81 INSPECTOR. PRECISION MECHANICAl. Current Rate. - All Industrie. .. 6 35 $ 8.87 '10.63 $ '.24 - 10.75 Manufacturing .. 6 35 8.87 10.63 8.24 - 10.75 E.tabli.hed Maximum Ratea .. 6 35 10.84 10.75 10.75 - 12.41 $10.99 Eatabli.hed Minimum Rate. .. 6 35 7.10 6.46 6.46 - 8.70 7.74 MACHINING MACHINE OPERATOR (LATHES.MILLSI Current Rate. - All Indu.trie. 8 69 $ 8.72 $ 8.78 S 8.13 - 11.58 Manufacturing 8 69 8,72 8.78 8.13 - 11.59 Eatabli.hed Maximum Rate. .. 7 52 11.87 12.41 11.58 - 13.10 $10.74 Establiehed Minimufft".Aet..,.. 7 52 8.t4 8.10' 8.10 '~ lU6 8.1..- PRODUCTION MACHINE OPERATOR Current Rate. - All Industril' 12 187 $ 8.50 $ 7.04 S 6.51 - ".07 Manufacturing 11 186 6,67 7.26 6.51 - 11.07 Nonmanufacturing 1 11 + + + + Estebli.hed Maximum Rate. 8 150 8.66 7.04 6.51 - 12.55 $ 7.93 Establi.hed Minimum Rate. 6 150 5.25 5.07 3.78 - 6.93 5:18 PRODUCTION WORKER Current Rate. - All Indultrie. 12 226 $ 7.33 $ 8.85 $ 6.85 - 8.50 Manufacturing 11 208 7.54 7.39 8.95 - 8.50 Nonmanufacturing 1 17 + + + + Established Maximum Rate. .. 7 138 7.45 8.85 8.85 - 8.25 $ 8.25 Established Minimum Rate. .. 7 138 5.60 5.8S 5.85 - 6,04 5.26 _. '-, .. Caution . ower 40 perunt of Imployal reponed by 0... COfnPlny . htsuffiCienl.... COMMUNITY WAGE RATE SURVEY - ~ EMPIRE - 1980 6 ~J - "- ,"-,,<>" No. 01 No. 01 IlIIployee_ Int..- Com- 1111- W.i,htocl .....rtl.. IllIIple Job ClonlfiCtltion ponln pl- A...r.,. Modlon !lo- A....... - -'"'-;. PIlODUCTlON CLAlIIPlCATIONI (~uocIl SPRAY PAINTER (PRODUCTION) Curr.nt Rot.. - All Indultrlo. .. . 14 . 1.75 . 1.70 . 7.75 - 10.11 M.nuf.cturln. 5 . + + + + Non....nuf.cturln. 1 I + + + + EIt.bll.h.d M..llllulII Rot.. 5 12 + + + + . 1.77 IIbll.h.d Minilllum Rot 5 12 + + + + 1.45 TOOL AND DIE MAKER Curront Rot.. - All Indu.tri.. 11 31 '12.12 '13.70 '10.10 - 14.12 M.nuf.cturln. 11 31 12.12 13.70 10.10 - 14.12 EIt.bll.hocl M.ximum Rote. I 31 12.81 14.12 12.23 - 14.75 '12.71 EIt.bll.h.d Minimum Rot.. I 31 1.66 UO 7.51 - 11.10 1.30 WELDER. ARC AND GAS Curr.nt Rat.. - All '"duI.ri.. .. -10 163 '10.90 '11.112 110.11 - 11.112 M.nuf.cturln. . 26 1.61 1.12 7.15 - 13.01 Nonm.nut.cturing 1 127 + + + + Eatablilhed Maximum Rat.. .. . 147 11.46 11.12 11.12 - 11.112 111.17 Eatabli,hed Minimum Rat.. .. I 147 7.12 7,&2 7.12 - 7.12 7.13 ( -- --- .. ClutlOft . ....' 40 ...,ant 01 .""10..... NPorted by on. com"'" . ....uffic..nt..... COMMUNITY WAGE RATE SUR 7 ;ML... .".. - "- stAn OF CAllfOllNIA Df'AITMfNT OF 1NDUS1IUAl IElATION5 .....VISION OF LABOR STATISTICS AND RESEARCH GOlDEN GAn AVENUE '....N NANCISCO ,-" GEOIGf DEUKMfJ'AN, ~ " . REC'O. - "0\1.'''' Off. " ~ 01 \99G fE.B \ 0 f @- '"' ~. . " . , . ADOIlESS IE'l Y TO, '.0, lOX 603 UN FIANCISCO. CA 94101 " /, (415) 557-0561 '. ' . ., ':' t : :.. !. ~:; . ., ;, ::. ,. " August 22, 1985 .. ..'..... t.: " Dear Public Official: Under California Labor Code Section 1770, the Director of the Department of Industrial Relations is responsible for determining the general prevailing rate of per diem wages for each classification of worker employed on a public works project of $1,000 or more. -. The Director issues on a quarterly basis general prevailing wage determinations for those crafts normally associated with public works construction. It is required under Labor Code Section 1773.2 that the body awarding any contract for public work to either apecify in the contract, call for bids or bid specifica- tions, the wage rate for each craft, classification or type of worker needed to execute the contract or in lieu of specifying such wage rate, the awarding body may in such call for bids, bid specifications, and contract include a atatement that copies of the prevailing rate of per diem wages are on file at its prin- cipal offices, which sball be made available to any interested ~arty on request. Because of these legal requirements, the awarding body must have the appropriate wage rate for each craft, classication or type of worker before the commencement of the call for bids. Please advise potential bidders that any contractor who is awarded a public works project and intends to use a craft or classification not shown on the general prevailing wage determinations, "7 be required to pay the wage rate of the craft or classification most closely related to it as shown in the general determinations effective at the time of the call for bids. If you cannot find a job classification needed to execute a contract in the Director's general prevailing wage determinations, please contact the Division of Labor Statistics and. Research, Prevailing Wage Unit, P.o. Box 603, San Francisco, CA 94101, (415) 557-0561. Because it may necessitate a wage survey, you ahould allow 30-45 days prior to the bid advertisement date for auch requests. Include in your request, the project name or bid number, the classi- fications needed, job description, if available, the bid advertisement date, and location of the project(s). If you are not on the mailing list to receive the minations, but want to be included, please cont evailing wage deter- ementioned office. - Er C. 'OS~'t'" "'It. """,,., ........'I1ON o...t IV M IlIIIfCTOll I'Ull$UAN'l 10 CAll'O'IN" IAIIOO lXJO[ '. NI'I1CU.J. aCTIONS 1'770. '173 AND lm.l PDR COIAIERCW. NlGMWAY. -..aNG. MlAYV ~ ,.., 1DM0GNi ftIIIDJEC1'S "''-'''' - -, ---- ~ DetemMnM-on; 1C-:rs.a.Ja.Z ....... Ute: AuI,*Z2,'. bpImiOn .. of .....nni'**': JuneJO.1_..".........._..WOfIr:.................,thltdltt..........~...L.... .-'........................... .........,....... ehouId _1no-_.1ll.41ft ____ __......... c.n..ct.. DMeIon of Ubor 1I:ItIirtiCII...................-c.-.. Loc.Ility; All kJceIitiet within mp.n.1.1rPto."-". LoI...... Mono. Cb,... "iwraid.. SIn "rnerdino. SIIn Lull 0tM.p0........,..... _v..ur....... -- ..............- Strelght-time ---- c....ification _.......- -.. - VIalionI Training 00.... Hou.. T..., Dolly -. au_ (Jou".yperwonl ............. .... ......., _nta ........ .... - w..... - 'lOx Ix 'lOx Ix ...... - .L........ ." G..... . ....05 ....5 ''''5 ..... .... . ". 125... c134A25 143.4$ IIIM,as '143.4$ '.1.10 Group 2 'U3 ...5 US u. ... ". 20.8. c".lCS ".0' .14_ ....01 '..... G..... 2 '1.12 "'5 .... u. ... ". 20.87 ',5.2. - ...... ....11 'a.t1 G..... . 11.'78 .... US u. ... ". 11.11 ea,a ...... ...... ....... 'a.13 Group i .... 2," US .... ... ". 21.23 ' ..... ..... ..... -..31 '.... G...... ..... .... .... .... ... ". ..,.. c... ".53 -..- '..53 '''.12 Group 7 '1.21 2M .... .... ... ". 21.1. c..,. ",77 -..,. -..77 '.... Group . ..... .... US .... ... ". ".71 '..A> ..11 ...A2 ....11 '.... -. '1.1' .... US .... ... ". .... c 31.115 ".37 -""5 ....37 '... .lndicM_1In lPCnnlioMbIe cnfl:, .... for ~_4" wllI_ ~ upon........ . For claulfalNma wtthin NCh group.... following pegft. tl Wher.!hI AWARDeNQ IODY Ci.... City. County. SlIt.; Of other ,o.&Jflf'M..b!1 egencyl IPKH"_ in the rails for bids, the bicf apeelfiatiDnl. end the ClOnU'KItlMlf IN! the wort an only be performed outIide the ,"utar working holm _ defined In the lPPIiCllbIe oollKtiw t.rpining Iereernen1 filed with... Dir-=tor of InduttNI "'llItionlln 8CltOfd. enee with LaborCodll s.ction 1773.1.theoYMimetWqul*,*,*forSeturUva.~. end hoIid11va rnev be W8Md. However. thll enmption wll noI MgIte the ov.rtimt proviI.ione apeeifted tn Labor Code Sed:ion 11". ..,....,'.... t" _.L.d MMIp: '" _~...... LIbar Code &.dIon 1m......". ~_..._---_.._-_.. .....-....-,,--.....--- ....to..p.nic:uWcnft.. - ..ar..,.OI.........,..". ..~wNch.on...wIIh.. DirlcDOI~....... - - . ...... ~.~ -, Q........- ClI**w (-.n......... (lJIOD CAI_IIrv-............. -_I DIlch WIIr:tl,...... Dr .,.,........ ---, E_oo.. ~1JII__.__1 -- -,.........~-- -..DuIy-- .......- so.- a_IId.._. - DAOUP . err-__, ""'.... ~- F_ ttt~ --~~ 0Met CruIhtr c....- Dr~.....) -,OOI_lDOlIoldl ~ .....type.ID"',."................ IoIIa F.., TICfnciM 1. Pal r:nn.n T--.-",__ T__OIIo< T_~OIIo< E,Ic, 11 CRete ~_ to the fim" 0WI'time hours. d"-t.apP'_tothefil"ll12houNWOfIIed. . Rlt. .110 appl. to wort on Sundr,I.nClthe ~rof s.turdey. f Rite epplin to hoIid11vs .nd the fil"ll Seturday foUowing 1M firat Fridey tn the monthe of June.nd December. ,..... end -~. _ ..,......:". ~.............. Nt- .-..nee ~ to NCtI...w needId tD....... wa\,........ 1nCl-...... _ PiIY"** aN dIfned.,.. ~ ClIllklIw ~ ~ ...,..,.. DirIICICW 0I1rd...w AIIIeiorlI ~ _~_.... Laber CocIt &eaIan 177:1.1. DAOUP , MrMIe OIWftfl TNdl ap.a Choimwl ~-_l Ford~ 1tIIIlh~1L4.._~) '--- -Canaroooc:u.tno__ _CanaroooSow_ _-Drivon............__ _c.mo._ _I -........W_'CIoonOlg__ GFIOUP . Aaphah Piant Fi....-..n "cthoe OperMOf (Minl-M.. or aimilertypel 1Io<Ing-- 1IoI:man00Mia,",*, ~OI~) .....T..._....__ ~~- Q;pSpod-og-- Cclncnolo......._I....._1 Drur ~ Dr"""'" t~ tD......... to__, --_-I -.....-""-- ....--- _...~...- ~_."""'- --- - RoIer~ (i-.. ...) -_1_"-1 T___ c..'1L1 "."". ..~' "--:VAIIN(; ~E DrtlRMlMA.TtONQE_ _0Tll0I OF J--"'C: ..- . .1M LAIOI'I COOl MIlT . ,. .."au IICT1l1011. ,.m _ .m,' fIDfl tlDfl''ERCll\L -.....G. IDfWAY. ...W CXIICTNJC'nON AND DMDGING PRDJICTI ...: ,- ~ion: 1t.D-.l....... ..... ...: AugllStZZ.ll15 .~ bpirMiOn -.. of~: ~Il.l_..1'M"'''''''''''''''''''''''''''''"",,,,,,,,,,,,, ...... .........................__ ......,...,............. "_.--,J.~ ~_ __.... _. c.-.........~........... ....................-. _ .....Iity; A1llcalit_within~,InwD.Item.LoI.,.....Mono.Dr-........, Sen~, "n~ ~,.................v.....___. - DMIifOtion Uouml'fplrMftJ " A-trefMOf~_.or eimill' 1ypII-.uiprNnt iIIr'MI". Forklift *",-r. Aou eam.t driwr-highway IocJtrNn. c.m.nr diItriI:II.IIDr truc:t,Fu.ltrucldrivef. W...'tNCllO....., Drivel'ofOiI~trucl Driver of trIInslt-mia lruc:1l. undI:r , ydI. DumpcrMe 1ruci. ...."'-n.on___.... ~of"'*-milr1NCl-'... or more, Du"..... tNC:t. 1% yds, ...r a.v.1 Mdowr Lowb..:ldriver ".....or...} PBMdsimi..'1ypII:trudlI...... IN.nd utJlily WQftjng truek Oiwr.indudingwincl'ltNdc.bul: limiledtotNcbaPlJllcabletD pipeline.nC1 utililyWOft,..... ec:ompoalteCIWWiI~"rry truck driYer. tndt II""" MCI ti,."..."fSOcperllaur8ddltioMl fDrtiNrnenlMlftingtrul*......,. EfOIioncontroldriver TraffiC-contfOtpi6cJtca,.ecIud- ing moving ....lIIY eq&Mpnent ............ Tn.d. rnoutUd polftr brDom TI'Udl repeil'nwn,...... pull (.ingle engine). Welder Trudlrepllinn.nhetper Trud.repairmen....... WerehollUfNln We,.housemIn dart Water pull.1win engine (wfth orwithouC enachrnentlJ Wete,pull,lIingleengins (wittl en.ct"....nl.! W.I.rlruci: (3ormore.....) Driver of whitle or combinMiOn of vehicle. of hncludes.1I vernc:.......tNin.tDMl ..... ..... . or more ..tel A1loff.hig'--v..ui~(of'I- highlny combinauon of wht- .. or llQUipnem wfth multiple power IIOUrcM 11.00 per hcMIr ..:IditiDMll Except; Driver of esumptFUCt: of; .... tNin 16 yd5. "e''''''' 16,.os, bu1 aentNin 2$ ydI. water level 2$ yck, 0' more WIlier ""1 - ... .., -_. --.. - .11..7& ..... - .... ..... '7.20 ..... ..... ..,.. ".11 17JlO ..... 17.10 "'" ..... 11.DO 17.10 ..... .US 11.20 l"'S 17JlO ..... 11.10 17JlO - ... -~ -- ..... v..tion/ T..nno - .... .u. ..... 2A2 2A2 .... .02 2A2 2A2 2A2 .... .... 2A2 2A2 '02 .02 2A2 2A2 2A2 IA2 .02 .02 2A2 102 '02 .... '02 .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... . Wher.the AWAItDING 8DDV (i... CIty. Couflty, Slate. or 0Che' ~._,"\__18VI"CY" ~ifiM Ir'IthI mlrtor 1:Iics.. the bid..-clficatiDnl..-dthe DOrIIrer:t ...."met...wort CIIn only be performed DUIIidethe regullirworting houfti. cWrnecllnthl8lllPlc.blel OOIlecti....barf8ini"".gr_mentfiledwlltl...DirIldorOlI~nel..leliof'w,tn~ 8hClIwlthubotCodl s.ct1Dl'l tm.'.h~,.quI...,.fDr~.....,.. ."d "olid...,.. m.\, be....~ Nowewoer." ..ernptiotl wll........ the......... provitiol'll .pecirled in LMor Code SetiOflll'S us US US US US US US US US US US ... ... ... US .,.. .,.. US .,.. ... US US US .,.. '-' A _ ....., ~: ", ....... WltII.IItlor Cadit ...... 1m. ...... 14'0" Ifhlctlh,."..r ~ ~ ....,..... ............. peld INllI .... flDIrdeys ~ In" ~................ ....1D..~cnft.~b...,....,.rI,__.......... .. prgtId wtldr III an....,.. o.r..rrl ~....... e" Co ]I -. -- .... .11 .11 .11 .11 ... .11 ... ... ... ... ... ... ... ... ... ... ... ... ,.. ... ... ... ... ... -- -.. 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"'U"HI ""'UCAlLr "' 'nI' "AItUCUI,M ClUT. CLMllPlC&n... ."" .. ....1. ....UlnD .. 'nit PIOoItCT "101 I' .. PI'" 1Il'hl "1 IlI'ltTCll .. ""'''1&1 "LA,.... .A\l1l MIl "'''TlCI ......""" _ ~ae,. .....U NQ .'WI' AN) __llTlCI .......,.. ,. 1101 ...... ..IID ,. hitun' .... _. .1 aDo ""YIL IltCl ...ltTlOCI '.N..,., "I DIPI..:II It! 'Ill1 ....Llc.&IU CIllUCTlVl ....,... -.uN'" nUll 1Il"lll TIll' ...n. .. 1tOUi"'161 .u.au_ .. ....... m", .... _I .CT'" 1"1.'. ,ff1 '- ,.......- -..."J *' U,,(cu ;+. :, FC.d&". \ ~...""".., woe ...... '-'H .....') 1'5 ~--,t- '~--f Name . . .1fr.,....~',,:. /..J,"ul-.._ Tifle CIty R,,,':n s.o.!. 1138K/def ,,:- .' .....,,"" '","".... ,",../ '- REDEVELOPMENT AGENCY PREVAILING WAGE SURVEY A. Do you Include a D~e~all)ng wage requIrement clause when: , . Yes No 1. You contract for public Improvements? 2. You reImburse a developer who contracts for publIc improvements? 3. You offer an Inducement loan to help a developer wIth a cash flow problem? 4. You offer a developer a loan guarantee? ,/ 'f-lY-1 ~t) NPl v ([e V J'!B S. You aid a developer under the IRB or IDB programs? - -~ 6. You assemble and sell land to a developer? 7. You match a developer's expense in a -beautIfIcatIon program? B. Do you normally include a prevaIling wage clause when it Is not required by federal law or CalIfornIa code? /' -I~ /-~ 7AM/~. Name 6-frl tJdMrJ TItle/CIty r 1138K/def '- "'. ....,... 'J REDEVELOPMENT AGENCY _... PREVAILING WAGE SURVEY A. Do you 'nclude a Dreva'l~ng wage requl~ement clause when: , , , , Yes No l. You contract,for public Improvements? Y 2. You reimburse a developer who contracts V for public Improvements? 3. You offer an Inducement loan to help a ~ developer with a cash flow problem? . ~ 4. You offer a developer a loan guarantee? 5. You aid a developer under the IRB or ~ IDB programs? 6. You assemble and sell land to a developer? ~ 7. You match a developer's expense In a I~ -beautification program? - B. Do you normally include a prevailing wage clause when it Is not required by federal law or ~ California code? ~~~_~ J N e - ~ L2_';";,.~~, C... L~/8 TItle/City v ll38K/def - ~,,; '. REDEVELOPMENT AGENCY .-- PREVAILING HAGE SURVEY A. Do you Include a orevallJng wage requl~ement clause when: Yes No 1. You contract,for publIc Improvements? X 2. You reImburse a developer who contracts X for public Improvements? 3. You offer an Inducement loan to help a "X developer wIth a cash flow problem? . ')( 4. You offer a developer a loan guarantee? 5. You aId a developer under the IRB or X IDB programs? 6. You assemble and sell land to a developer? X 7. You match a developer's expense In a X X -beautIfIcatIon program? ~,. B. Do you normally Include a prevaIlIng wage clause 7 when It Is not requIred by federal law or CalifornIa code? . vi~c/ :..---' TM~ ll3BK/def - "-\."..- "'""...." ~ - - - REDEVELOPMENT AGENCY "'".""". PREVAILING HAGE SURVEY A. Do you Include a prevall~ng wage requl~ement clause when: . . Yes No 1. You contract for public Improvements? r./fIt.. . 2. You reimburse a developer who contracts "/A- for public improvements? 3. You offer an Inducement loan to help a r.(A. developer with a cash flow problem? 4. You offer a developer a loan guarantee? "1~ 5. You aid a developer under the IRB or IDB programs? ,/ 6. You assemble and sell land to a developer? ,/ 7. You match a developer's expense In a Y1.(c-. /' . -beautification program? "',-, B. Do you normally Include a prevailing wage clause when It Is not required by federal law or / CalifornIa code? OkV'.. JO~.i . , Name f&.J.<AJ~~ ~ll- Title/City ~ U~""'fc... t<dwdyNJT +4 113BK/def ~~, Bl.l4(H~ ~ kf~ - r)IL /iu-.- 4IbI;~ ;... ~ ~ Cb<... fLt.(...V rd"<- . 4 tI~ 1tW, ;-/- ~ dvJd.ty~ ~.J. 1Gb tf...t..vf I.. I ~ ~ ,..;...... ~ r kJ -~-,_.- - - - - --------------- - - - '\...- ) ~ '--H ~ Deloitte "","-,,", Haskins+Sells Management Advisory Services , ~ o~ lHE eliI' # 4<- PROPOSAL TO ~~ faElJR'fb \ ~ fEe .7. 1986 i THE CITY OF \ <~~,_ .! ~ ',- ~~ . SAN BERNARDINO ~ REDEVELOPMENT AGENCY "'-- TO' STUDY THE IMPACT 'OF' THE' PREVAILING WAGE CLAUSE ON NON-PUBLIC WORKS CONTRACTS "-' FEBRUARY, 1986 """,,..,., Deloitte\..- Haskins+Sells '" ,,; :,,,,,-, Suite 1 900 701 "B" Street San Diego. California 92101.8198 (619) 232-6500 TWX 910-335-1573 I L Ms. Glenda Saul Executive Director Redevelopment Agency City of San Bernardino 300 North "D" St. San Bernardino, CA 92418 Dear Ms. Saul: Deloitte, Haskins and Sells is pleased to submit this statement of qualifications and proposal to the Redevelopment Agency of San Bernardino for financial impact study on the use of prevailing wage clauses in redevelopment agency contracts. February 6, 1986 '" L [ [. I~ I I l ,. This statement includes our understanding of the study, description of our workplan, background information on Deloitte, Haskins and Sells, the experience our firm has in working with Redevelopment Agencies and with this type of study, and the principal staff who will be working on the project. We have selected a project team who can best assist you in determining the financial impact a "prevailing wafe clause" would have on the Agency's budget and the Agency s activities. We have also provided a work plan that we consider meets your time requirements, yet enables a thorough and professional job to be done. Special attention should be drawn to the qualifications and credentials of our proposed project team and our past experience with local area redevelopment agencies. Our team is confident that no other firm can match the experience, commitment, and sensitivity to your needs that we possess. As a Partner in our firm's Governmental Services Consulting Practice, and as the executive with principal responsibility for this engagement, I am personally committed to directing the services we render. I will make sure the project is executed effectively and that our report addresses the issues that are important to help you make necessary decisions. , "' l, "'-' ,....- .- l_ ," I I I I I ~d ,~ r I ,- - ....'^"., We look forward to this opportunity to serve the Community Redevelopment Agency and to make a significant contribution toward achieving your objectives. 1 would be glad to meet with you to discuss this proposal in greater detail and to make any modifications that would make it more responsive to the needs of this project. We are also prepared to attend the February 17 Council Meeting as requested by your staff to answer questions and receive any direction that is needed. Sincerely, ~~ a4' ~<-H" Frank Panarisi. Project Manager '.. ""..,.' .......'~" "'.., ,~ '",,", TABLE OF CONTENTS Pal?;e I. Our Understanding of the Study 1 ll. General Firm Qualifications 3 "- Ill. Related Experience 7 I' IV. Project Approach 10 A. Work Plan 10 V. Project Organization and Staffing 16 I VI. Resumes 19 Vll. Project Cost Summary 32 - ~ , , I. f , ,- """"""' i . I I L L L [ G -". 1";-". L L I L . ........ j I "",.J I. OUR UNDERSTANDING OF THE STUDY The Redevelopment Agency of the City of San Bernardino (SBRDA) is pursuing management consulting services to provide an economic impact study of the effect that a "prevailing wage clause" would have on the Agency's budget and the Agency's activities. Currently, all major construction jobs that are classified as "public works" projects are mandated by law to include a "prevailing wage" clause. The Agency Board, (i.e. the City Council) is proposing to include this clause in all contracts with the Agency (both public works projects and non-public works projects). The Board and the Staff would like an idependent analysis of the financial impact if a prevailing wage provision is required. We understand that these findings will be presented to the City Council in addition to other groups, as agreed to by the Agency staff and Deloitte, Haskins and Sells. The major work tasks required of Deloitte Haskins and Sells for the Redevelopment Agency would include: Reviewing existing contracts . . Reviewing certain contracts from the past three to five years Reviewing programs and sub-programs of current and past Agency activities, that are not necessarily "contracts" Collecting current prevailing wage information from published studies and other official agencies and comparing this data with wa~es of affected contracts that are not deemed by law as public works" projects and thus exempted from the law . . . Preparing a list of affected activities and contracts per currently used project area categories, and identifying the impact if "prevailing wage" clauses were used Interviewing appropriate persons that may be impacted including: board members, agency staff, and representatives from labor, finance industry, developers, contractors, potential users. . . Identifying the impact (i.e., cost, benefits, activity impact) of using "prevailing wage" clauses in all contracts on the Agency and the community -1- - --- - '1",,- '"'-" # I . ( - It is our understsnding that the deliverables from our study will include: I I . Report identifying the impact on current projects and potential future projects including costs, future activity, and benefits to the Agency and the Community Graphic display for public presentations Recommendations for future course of action . L L [ [ L r~ L E [ I . r i '-' -2- "-, "'..... ".,' , " II. GENERAL FIRM QUALIFICATIONS ~~ L r: L [ r ~~LQlTrE_HASKINS & S~LLS Deloitte Haskins & Sells (DH&S) is one of the largest public accounting and management consulting firms in the world. We have earned an outstanding reputation for serving organizations in all major segments of the economy - government, real estate, health care, transportation, manufacturing, commerce, banking, public utilities, insurance, education, securities and commodities, and service organizations. We are a general partnership formed in the 1890s with executive offices at 1114 Avenue of the Americas in New York City. In the United States, we practice through 101 offices in 38 states, Puerto Rico, and the District of Columbia. Worldwide, we have built a network of 350 offices in 71 countries. Our U.S. professional staff consists of approximately 8,000 highly trained consultants, accountants, tax specialists, and other experts, including 800 partners and 1,100 managers. Our professional staff is supported by approximately 1,500 research, administrative, and other personnel. ~\ . MANAGEMENT ADVISORY SERVICES L I. I r r Consulting services are provided by the firm's Management Advisory Services (MAS) Department. MAS is organized into industry and functional practice groups. This project will be the responsibility of our Regional Government Group, which is composed of professional consultants with extensive experience in public sector consulting. In addition, the talents of our Regional Real Estate Group will be utilized to assist in evaluating the issues of this project. The breadth of skill and talent that Deloitte Haskins & Sells offers is demonstrated by the many consulting engagements for which we have rendered management services in the Pacific Region. We have successful experience analyzing technical and management problems and developing systems associated with the delivery of real estate and government services. These analyses frequently involve preparing feasibility studies, financial analysis reviews, salary and classification studies, conducting operational reviews, developing policy and procedure manuals, providing training to user personnel, and the development and implementation of systems. l"':'" 1"- I I -3- ...' ,,'.. ',-~ . GOVERNMENT SERVICE GROUP - Deloitte Haskins & Sells has a commitment to aid government officials in their efforts to establish effective management practices and systems. Our Firm's work with over 700 Federal agencies, state and local governments and special purpose municipal agencies (i.e., ports, airports, sewer and water districts), has contributed to the solution of many different kinds of problems and innovations in doing work more effectively. The headquarters of our Pacific Region Government Consulting Group is in our San Diego practice office. Directed by Mr. Frank Panarisi, who has over 27 years experience in County administration. The government group is dedicated to assisting public officials in meeting the challenges they face. l r L r: [ '- I: [ I: L This group's approach is to work with decision-makers and their operational teams to build an efficient and effective governmental organization. The group assigns knowledgeable professionals with appropriate public sector experience so that the firm's involvement is productive and least costly to the government. One of the key features of the Government group is the full range of services offered to public sector clients. These services include: . . Efficient - Effective Operations . . Infrastructure Planning and Management Systems . . Financial Reporting . . Data Processing . . Cash Management . . Organization and Human Resources . . Planning and Budgeting . . Financial Management We list in Exhibit 1 the major public sector clients served by our Pacific Region Government Consulting Group. " 1'- I -4- ",., " -- EXHIBIT 1 DELOITTE HASKINS & SELLS PACIFIC REGION PUBLIC SECTOR ENGAGMENTS L r L [ [ Alameda-Contra Costa Transit District Arizona Department of Finance California State Contractors State Licensing Board California State Department of Finance California State Department of Health Services California State Department of Industrial Relations California State Department of Motor Vehicles California State Department of Developmental Services California State Department of Social Services California State Department of Veterans Affairs California State Employment Development Department California State Lands Commission California State Office of the Auditor-General California State Water Resources Control Board California State University and College (CSUC) City of Aberdeen City of Alameda City of Alhambra Redevelopment Agency City of Brentwood City of Carlsbad City of Chula Vista City of Emeryville City of Henderson City of Huntington Beach City of Industry Urban Development Agency City of Irvine City of Los Angeles City of Los Angeles, Department of Airports City of Los Angeles Redevelopment Agency City of Oceanside City of Orange City of Oxnard City of San Diego City of San Francisco City of Scottsdale City of Simi Valley City of Tempe City of Vista City of Walnut Creek Clallam County, Washington Clark County, Nevada Clark County, Washington County of Los Angeles County of Monterey ~.. L [ [ [ r - -5- ~,,'--,----^" ~ - - - ","-"", .-' EXHIBIT 1 (Cont'd) '.,..,,,,,,", ,- County of Orange County of San Benito County of San Bernardino County of San Diego County of San Francisco County of Santa Cruz County of Stanislaus - Scenic General Hospital East Bay Dischargers Authority Golden Gate Bridge, Highway and Transportation District Imperial County Los Angeles County Transportation Commission Maricopa County, Arizona Marin Municipal Water District Metropolitan Transportation Commission Monterey County Napa County Orange County Department of Social Services Orange County Environmental Management Agency Orange County Flood Control District Orange County General Services Agency Real Estate Division Orange County Transportation Commission Pierce County Riverside County San Bernardino County San Diego Association of Governments San Diego Community College District San Diego Community Foundation San Diego Housing Commission San Diego South Bay Union School District San Diego Unified School Districts San Francisco Housing Authority San Joaquin County Santa Clara County Transit District Seattle Schools District Southern California Association of Governments Tucson Airport Authority Washington County, Oregon l I [ [ b r:- L [ [ r , '- -6- =-"------;r---;- L ~- ,,"',>J I. III. RELATED EXPERIENCE ~"..,; L Deloitte, Haskins and Sells is a seasoned firm in ,financial impact studies, wage/salary surveys, salary modeling and is very familiar with Community Redevelopment Agencies. We are currently working with the Community Redevelopment Agency of the City of Los Angeles in a management operations study. We recently concluded a financial and management review study for the Los Angeles County Redevelopment Agency and have done management audits for Redevelopment Agencies for City of Alhambra, City of Industry and the City of Los Angeles. We have also done numerous salary/wage surveys for private and public entities as well as many economic impact studies with some dealing in prevailing wage clauses. We feel eminently qualified to assist the Redevelopment Agency for the City of San Bernardino,and believe we can provide them with outstanding resources to satisfy their needs in this project. DELOITTE HASKINS & SELLS [ [ L I' . Los AnReles County Grand Jury - We were recently engaged by the Los Angeles County Grand Jury to audit three redevelopment agencies and review the contracting process and the budgeting system for the County. The three redevelopment agencies included: The Los Angeles City Redevelopment Agency . 1 r-- . The City of Industry Redevelopment Agency The City of Alhambra Redevelopment Agency L [ [ I . Our review examined the management issues, financial accountability and potential controls, oversights, and legislative actions. Mr. Frank Panarisi had responsibility for directing this engagement. Mr. Mike Ford served as a lead consultant on this engagement. Contact: Audrey Collins, Deputy District Attorney - County of Los Angeles, (213) 974-3993 . Los An eles Count De artment of Communit and Senior Cit zens Servlces - We per orme an assessment 0 t e Private Industry Council, the largest single grant program administered by the Department of Community and Senior Citizens Services. This engagement included an analysis of its: r . . Organization and structure Information system and data base Conformance with JTPA objectives . . . . "...- I I i -7- I- ,",,, '" ..,.'"" : l I . E [ n 'r---.. . I I: r ! .~ ! I - ......,-' ~ . . Linkages with business, service providers, other PICs and the public profram administration Emp oyment training services . . . . We provided findings and recommendations for each of these areas as well as an annual self-assessment process. During this study we spent considerable time analyzing the Department's data systems and capabilities. We identified information and system needs and made recommendations for improvement. Contact: Robert Medina, Director, (213) 738-2611 County of Oran~e - We were recently engaged by the General Services Agency Real Estate Division of the County of Orange to study its entire inventory of real estate to suggest revenue maximization methodologies consistent with the constraints of publicly held assets. Included in the 37,000 acres of real estate are developed and undeveloped properties in urban, suburban, rural, and recreation areas. The County's primary goal is to develop alternative sources of revenue to offset anticipated budget shortfalls through the end of the century. Mr. Robert Reicher is a senior member of this engagement team. Contact: Bert Scott, Director, GSA, County of Orange, (714) 834-2114 County of Oran~e - We are currently performing a feasibility and requirements study for a land information system with the Environment Management Agency in Orange County. Our study includes a survey of the current system, defining system requirements, and providing an overall cost/benefit analysis of the proposed system. Mr. Mike Ford, a lead consultant on this engagement, will act as a consultant in the proposed study. Contact: Bob Yablonski, Manager - EMA Computer Services, County of Orange, (714) 834-3179 . County of San Bernardino - We completed an engagement with the County of San Bernardino to evaluate the financial impact, organizational and procedural implications of transferring the Child Support Billing and Collection function from the County's Probation Accounting Department to the District Attorney's Office. Mr. Frank Panarisi, Ms. Joan Martin, and Mr. Mike Ford were key individuals on the engagement. Contact: Robert Rigney, Chief Administrative Officer, County of San Bernardino, (714) 383-2018 -8- L I ',- - I L [ I. r f' - I l. L [ I r' i-' , , I ....." "..," . County of San Bernardino Grand Jury - We recently completed a revIew of the Child Protective and Placement Services of the Department of Public Social Services. This review included an assessment of the effectiveness of the CPPS operations including personnel and salary issues. Ms. Joan Martin served as Project Manager. Contact: Ms. Marilyn Brunner, Resources Committee, (714) 946-5372 (H), (714) 383-2509 (W) . County of San DieRo - We recently completed a review of over 700 County programs regarding their feasibility for contracting out vs. County provision of the same services. The review included the development of a cost comparison model to identify the fiscal impacts on the County of contracting out particular services. Mr. Panarisi, Ms. Martin, and Mr. Scott Miller performed this engagement. Contact: Mr. David Janssen, Assistant Chief Administrative Officer, County of San Diego, (619) 236-2722 County of San DieRo - We recently completed a comparative cost analysis of three vendors proposing to install a $60 million telephone system for San Diego County. Mr. Panarisi directed this project. Contact: Mr. Richard Jacobsen, Deputy Chief Administrative Officer, County of San Diego, (619) 236-2722 San Die 0 Association of Governments - We developed a job c ass cat on system ase on 0 classes as determined by various levels of skill, effort and responsibility. New job descriptions were developed based on current duties and responsibilities and to reflect the new job classification system. We conducted a survey of local governments and Councils of governments. Based on the survey, we developed a pay plan for the organization that is competetive and designed to retain and motivate staff. Contact: Mr. Richard Huff, Executive Director, or Ms. Stephanie Rose, (619) 236-5300 -9- I- I' "-~ '-..- , IV. PROJECT APPROACH - A. Work Plan L Our workplan includes eight major tasks and additional subtasks which are listed below. We assume the project will be completed within 45 days after the contract is awarded. Recommendations, reports and graphic displays for public presentations will be provided per the requirements set forth in this proposal and the formal contract. Each is discussed briefly on the following pages. L L [ ~ .~ [ [ [ f ~ I' I -10- r "'." ......".... ,,",,.,,,. ,;"",- TASK/SUBTASK DETAIL TASK 1.0 - PROJECT INITIATION AND MANAGEMENT L This task is standard for all DH&S projects and encompasses all administrative and management matters pertaining to the initiation and management of the project. The objective of this task is to establish management responsibility, organize the members of the project team, and establish working guidelines which will ensure efficient administration and effective communication throughout the project. In this task, we will complete the planning and organization of the project and discuss our work program with the Agency staff. We will review the existing RDA information to identify data requirements which will be included in the final work program. Specific task objectives, deliverables, schedules, Agency staff support, staff/firm meetings, project responsibilities and control procedures will be finalized. The introduction of Agency and DH&S personnel will take place. Work space, files and supplies that may be needed will be finalized and discussed with Agency staff. l. [ [ n r"~ [ [ [ r r ; TASK 2.0 - ANALYSIS OF CONTRACTS In this Task, current and past contracts will be reviewed, affected contracts will be separated, and pertinent data will be collected from these for later analysis. Not all contracts will be impacted and analyzed. It is our goal to make the information as useful as possible, thus the most relevant data will be organized per project (both past and present) along the lines of project areas (as is done under the current Agency system). TASK 3.0 - GATHER APPROPRIATE WAGE/SALARY DATA This task deals with the gathering of official wage/salary rates as used by the Agency and other governmental agencies within the area. The firm will use only published data to keep consistency with information already used by the Agency. The Federal Davis Bacon Act, State Davis Bacon Act, and the Contract Work Hours and Safety Standards Act will be reviewed regarding prevailing wage requirements. In this phase, appropriate bench marks will be identified and used for comparison analysis in conjunction with the wage /salary part of the study. "..- -11- --'~-~"- - ~ I I I I I r [ [ [ I~ [ [ IT 1 "". .......,...... ...-F TASK 4.0 - WAGE/SALARY COMPARISON ANALYSIS -- In this task. the actual comparison and cost impact will be studied for selected projects with data obtained from the contractors/developers that were selected for comparison. Bench marts will be compared and subsequent cost data analyzed. Cost impact estimates will then be developed for selected projects. Benefits will also be identified whenever possible. At this stage, a preliminary cost impact figure can be obtained for inclusion in the preliminary draft report. TASK 5.0 - SURVEY DATA COLLECTION As the second part of this study starts, the activity impact and community impact will be assessed and analyzed. To obtain pertinent data, current and past Agency contractors will be contacted and interviewed/surveyed. This data will be obtained to determine if an impact would occur (in the perspective of these individuals) on doing business with the Agency. Also other individuals and groups as suggested by the Agency will be interviewed to obtain the same information. This data will then be converted into a useful format for inclusion in the preliminary report. Also, this data will provide the basis for recommendations regarding future activity impact on the Agency and thus the community at large. TASK 6.0 - REVIEW OTHER ORGANIZATIONS Concurrently with other tasks, a review of other agencies will be done to identify others who have had these questions and to assess the effect their decisions had on their agencies. While other agency experiences could or could not have the same impact on the SBRDA, similar experiences sometimes present similar solutions and similar problems. TASK 7.0 - PREPARE DRAFT REPORT , As the data and recommendations are gathered and analyzed a draft report will be issued for Agency staff review. At this time a meeting with DH&S staff and Agency staff will be held to finalize any previously made arrangements and to formalize presentation schedules. '........ I , -12- L I- ~.-' TASK 8.0 - PREPARE FINAL REPORT ,- This last task will be the last deliverable, with submission of the final report. All display graphics for public presentations will also be given. At this time, our findings and recommendations will be presented. l_ L L [ r r ~ [ [ [ r r ~ I -13- r " TASK/SUBTASK SUMMARY 1.0 PROJECT INITIATION AND MANAGEMENT 1.1 Meet with RDA staff 1.2 Review RDA data files 1.3 Finalize work program 1.4 Meet with RDA staff ~"""'" .- 2.0 ANALYSIS OF CONTRACTS I. [ [ [ 2.1 2.2 2.3 Identify existing "non-public works" contracts Identify past "non-public works" contracts for historical perspective Categorize projects and identify appropriate data needed for study 3.0 GATHER APPROPRIATE WAGE/SALARY DATA 3.1 3.2 3.3 3.4 L [ [ n I Review current salary/wage data used Review legal requirements regarding "prevailing wage" Revise (if necessary) data from appropriate government sources Establish appropriate bench marks to use in analysis compar ison 4.0 WAGE/SALARY COMPARISON ANALYSIS 4.1 4.2 4.3 4.4 4.5 5.0 Identify contracts to be reviewed Prepare questionnaire Interview contractors and other appropriate people to identify wage/salaries used in non-prevailing wage contracts using pre-defined benchmark positions Compare actual contact costs to projected costs using prevailing wage/salary data Prepare fiscal impact for current projects and certain past projects per comparison findings ,- 5.1 SURVEY DATA COLLECTION 5.2 5.3 5.4 - 5.5 Obtain contractors/developers/ and others names and addresses in area and other prospective users of Agency services Prepare survey instrument Interview or Survey above to determine if prevailing wage clauses and possible costs effects would impact them and their relationship with the Redevelopment Agency on current or future projects Interview other ap,propriate people to determine effects if any a 'prevailing wage clause" might have on current and future redevelopment activities. Consolidate data and prepare for final recommendations -14- I- I" """'~" '- ,<Ii 6.0 ,REVIEW OTHER ORGANIZATIONS '''- I I L [ l [ (: 7.0 8.0 . ft- [ [ [ r , l'-' , I I 6.1 6.2 6.3 Prepare questionniare Review other redevelopment studies and/or experience. due to any actions taken. Prepare findings PREPARE DRAFT REPORT 7.1 7.2 agencies for 'similar Assess if impact occurred Prepare draft report with current data for Agency staff to review Meet with Agency staff PREPARE FINAL REPORT 8.1 8.2 8.3 Prepare final report Prepare graphic presentations for public presentations Give public presentations as required by final contract -15- I ' I , '" ....- " v. PROJECT ORGANIZATION AND STAFFING ~~ This section of our proposal presents the organizational sttucture and qualifications of our Project Team. ' Deloitte Haskins & Sells has carefully planned the assignments of our managerial and staff professionals and selected the most qualified technical assistance to ensure that the Team has the skills and required in-depth experience in the areas of government, personnel, contract analysis, program analysis and redevelopment experience. While the detailed resumes for each professional are attached, the following is a brief introduction to our Project Team describing their responsibilities on the project and their professional qualifications for serving the Redevelopment Agency. L L I [ [ l:~' [ [ [; r "- -16- I I . I I L I. [ [ [ r,- '"',.... -...',... , "..... Project Partner Mr. Frank Panarisi is the Partner-in-Charge of Deloitte Haskins & Sells' consulting services to public sector clients in the Pacific South Region. He brings to the engagement over 27 years of experience as a public administrator, including 15 years with the County of Los Angeles and 12 years with the County of San Diego. He has held almost every key administrative position including Assistant Chief Administrative Officer for the County of San Diego. In addition, Mr. Panarisi has directed all of Deloitte Haskins & Sells government consulting engagements in the Pacific Region during his 2 1/2 years with the Firm. Technical Advisor Mr. Robert Reicher is a manager in our Orange County offices. He is our economic impact expert and is also involved in redevelopment agencies from a real estate and land use function. Project Manager Ms. Joan Martin is a manager in our San Diego office and has over sixteen years of experience including government consulting, personnel studies and fiscal impact studies. Ms. Martin was project manager on our engagement for the San Bernardino County Grand Jury. Lead Consultant ,.. Mr. Scott Miller has over seven years of experience in the public sector and has done numerous personnel and financial impact studies. Prior to joining DH&S, Mr. Miller worked for the City of Palm Desert and its Redevelopment Agency. Project Consultant Mr. Mike Ford is our local expert in City and Regional Planning. He has been a city planner for a number of years and has worked with redevelopment agencies in the past. In summary, we believe our proposed project organization and combination of personnel resources is another reason why Deloitte Haskins & Sells is the best qualified consultant to complete this important project for the Redevelopment Agency. L [ I: r ,- I -17- I.- '-' I' I I L I [ [ [ ....,'.'" .,/ PROJECT TEAM ORGANIZATION CHART SAN BERNARDINO REDEVELOPMENT AGENCY I - PROJECT PARTNER TECHNICAL ADVISOR 10- Mr. Frank Panarisi Mr. Robert Reicher T PROJECT MANAGER Ms. Joan Martin CONSULTANT CONSULTANT Mr. Scott Miller Mr. Mike Ford I. L f r i , I r I , -18- " ". . ....-- , , .,......... I L L [ [ [ VI. RESUMES OF PROPOSED STAFF ,/ "-, I I. , r -19- I' '.....,... I ' "- Role in Engagement: Experience: I l l E [ f: I " - I. I I I If' '~ ....,...- FRANK PANARISI Partner Deloitte Haskins & Sells Project Partner Mr. Panarisi is the Firm's Director of the Pacific South Public Sector Consulting Group. Mr. Panarisi joined Deloitte Haskins & Sells in March 1983 after twenty-seven years as a public administrator. His public service included fifteen years with the County of Los Angeles and twelve years with the County of San Diego. Mr. Panarisi has held a unique variety of executive positions which have spanned the full range of county services. He has the direct experience of coping with the many challenges faced by local governments. Mr. Panarisi's background includes experience in the following positions: Assistant Chief Administrator Officer, San Diego County, . Responsibilities included: All appointed departments including: Housing and Community Development, Public Works, Planning, Public Administrator, EDP, Registrar, Purchasing, Social Services, Health Services, Air Pollution Control, Probation, Defender Services, Parks, Coroner, General Services, Library, and Revenue and Recovery, . . . . Coordination of the Sheriff, District Attorney, Superior and Municipal Courts, and all other elected departments. Chairman of the San Diego County Data Processing Policy Committee . . . President of County Health Care Administrator's Association of California . Assistant Chief Probation Officer for Los Angeles County -20- L ",~ r. 1- FRANK PANARISI I l L [ [ o Professional Activities: .- - '",,--, , . Education: [ I' .. , I 1 - - .........,~.. . Assistant Executive Officer of the Board of Supervisors in Los Angeles County President and Board Member of the San Diego Criminal Justice Planning Board Chairman of the San Diego Audit Committee Policy Committee Member on Administrative Justice for County Supervisors Association of California President of the County Health Administrators Association of California . . . . . Facilitator for the National Leadership Institute (2 years) - "Managing diminishing fiscal resources in corrections". California Municipal Treasurer's Association Municipal Finance Officer's Association San Diego Chamber of Commerce, Government Advisory Council San Diego Rotary United Way - Board of Directors Big Brothers of San Diego - President YMCA Board of Directors Graduate Study in Public Administration California State University, Los Angeles Bachelor of Arts Occidental College . -21- /- - I' -' Role in Engagement: Experience: I [ [ [ [ !'-'- I 'H' i. l [; r , -, , I , - - "'...~ , ROBERT N. REICHER Manager Deloitte Haskins & Sells Technical Advisor Mr. Reicher is Manager in charge of real estate consulting in the Management Advisory Services division of the Orange County office of Deloitte Haskins & Sells. Mr. Reicher is Manager in charge of real estate industry in Orange County since 1970, working primarily for real estate developers and major national consulting firms in that period. Most recently, he managed operations of the Orange County office of a nationally-known real estate industry consultant. Mr. Reicher has assisted in the planning, development, construction, marketing and financing of more than 100,000 residential units across the country, in addition to numerous planned community developments, commercial projects, office building developments and industrial parks. In the recent past, he developed programs for projects within the Redevelopment Project Areas of a number of major Orange County communities and has testified as an expert witness before various city and county commissions and public boards. Projects with which Robert Reicher has been associated include the following: Redevelopment of a two square block parcel at a major intersection of downtown Santa Ana. Said parcel, located in the city's Redevelopment Project Area, included office, retail and residential elements. . . A 120,000 square foot commercial office project in the Redevelopment Project Area of Santa Ana. -22- ...." ~ c.,,, ROBERT N. REICHER . An industrial/business park located in Simi Valley. Said project consisted of over 100,000 square feet of buildings developed on land under a long term ground lease from the local school district. . Analysis of four major parcels of L undeveloKed land in Rancho Bernardo to establis development strategies, marketing programs, disposition strategies and land [ residuals. The completed analysis was utilized as the basis for negotiation of a major land sale package. [ . A planned community development on a 1,000 acre ranch in Oceanside which was to include industrial, commercial, and residential [ elements as well as public-serving facilities. . [ . An innovatively-desitned Inglewood residential condomin um project of approximately 400 units in the city's Redevelopment Project Area. ,..,... . A 900-plus unit residential hillside condominium in Laguna Hills. , . . A residential hi~h rise condominium of approximately 50 units, to be built L adjacent to major commercial office and retail centers in Orange. D . A ~Olf course-oriented community featuring a ma or country club facility surrounded by approximately 2,000 residential units, plus neighborhood commercial and public-serving [ facilities in Rancho California. . A townhouse project to be developed adjacent r to major planned communities in Rancho Cucamonga. I . A residential and recreational community of nearly 400 housing units in Santa Ana Canyon, to serve the value-oriented Orange County buyer. ,"-' , I -23- I: " I I '-' ROBERT N. REICHER I r_ u [ c "'-' L Major Clients Served: F. ,- I , I, ; . .' t r-, I " . A 5,000 acre planned community in Denver with elements of residential, commercial, industrial. office, hotel and supporting civic development. Two investment condominium/apartment projects in Fremont to be developed around a series of man-made waterways and lakes, totalling over 500 units. A mobile home subdivision in Hemet which consisted of approximately 300 lots with separate family and adult sections. An evaluation of approximately 3,500 apartment and condominium units in 11 projects in Los Angeles and Orange Counties, for inclusion in an offering package for syndication. A mixed use development in Victorvi11e which included such elements as office buildings, industrial condominiums, mobile home subdivision and residential apartments. Three mixed use developments in St. Louis which included single family, condominium, rental apartment and commercial retail elements. . . . . . Avco Development Co. Home Capital Corp. Harlan Lee & ASBOC. Marine Midland Bank Kaiser Development Co. Bren Co. Grape Development Co. Deane Brothers Coldwell Banker Ring Brothers Mason Group CM Properties Home Savings Laguna Pacific Development co. Federal Projects Incorporated Goldman Sachs & Co. -24- I: .... I' ..",......- I I L r. [ [ 0 'u - ROBERT N. REICHER Professional Activities: Education: , , I l- I '"",' .........J California Association of Realtors National Association of Realtors Building Industry Association of Southern California Orange County Chamber of Commerce M.B.A., Marketing, USC Bachelor of Science, Marketing, UCLA -25- .... ' .'..,,' Role in Engagement: Experience: L [ L [ L r!- r II r: [ , "0'"'''' - - - - '-, ,-,..# JOAN K. HARTIN Manager Deloitte Haskins & Sells Project Manager Ms. Martin has sixteen years' experience consulting and program management for public and private corporations. Her specific responsibilities included: program and operation reviews; market and systems research; feasibility studies; organizational analysis; establishment of management control systems; human resource studies; endowment and grant management; contract negotiations; development of public and community relations; and supervision of professional and clerical personnel. Prior to joining Deloitte Haskins & Sells, Ms. Martin served as Assistant Director with the San Diego Association of Governments for six years. The San Diego Association of Governments (SANDAG) is a joint powers agency representing the sixteen cities and the county within the San Diego Region. SANDAG is responsible for regional planning in the areas of land use, urban development, Transportation, housing, air and water quality, and parks and recreation. As a Director with SANDAG, Ms. Martin was responsible for: Coordination with all federal and state agencies regarding funding sources for urban development and redevelopment projects throughout the San Diego Region. In this capacity, Ms. Martin was responsible for identifying relevant funding and application procedures for city and county development programs. . . Review of proposed major urban development projects to identify the environmental impacts (air and water quality, transportation, energy), fiscal impacts, population impacts, and land use impacts on surrounding areas, and the rest of the region. -26- '" "~~~' I " JOANK. MARTIN "'".........- L L [ [ [ - r ; ;..............- Professional Activities: ,. I Education: ",-" -- - -- -- ----- '~ ,,", . Development projects reviewed included North City West, Centre City Development Projects, Regional Shopping Centers, OTAY MESA, Community Development Block Grant Projects, Gaslamp Quarter Historic District, Fairbanks Ranch, Community Plans, Mt. Hope Redevelopment Plan, San Diego Intercontinental Hotel and Marina. As a Director with SANDAG, Ms. Martin also negotiated and implemented a contract for the sixteen cities of the San Diego Region with the U.S. Department of Defense (DoD). The contract included procedures for coordinated planning between the cities and the DoD for the location and development of DoD capital projects throughout the Region. Prior to her position as a Director with SANDAG, Ms. Martin was a consultant for six years with the Center for Governmental Research in Rochester, New York. In this capacity, Ms. Martin was responsible for consulting to cities and counties throughout New York state in the areas of governmental structure, organizational analysis, land use, assessment of public services, and legislative analysis. . At the current time, Ms. Martin is a manager with DH&S and provides management consulting services to public sector clients. Ms. Martin's clients have included, County of San Bernardino, City of Poway, the County of Los Angeles, Los Angeles County Grand Jury, County of San Diego, San Diego Community Foundation, City of Huntington Beach, Private Industry Council of Los Angeles and City of Oceanside. California Municipal Finance Officer's Assoc. American Management Association United Way Strategic Planning Committee B.A. (Cum Laude) LeMoyne College Syracuse, New York M.A., State University of New York Post Graduate Studies: Data Processing, Information Systems, Accounting -27- r \',,<,,/ .,'.......' Role in Engagement: Experience: L I. t [ r] !~ i I Major Clients Served: r j -, - -~',_.._-~,---~--~-,,~_._,- - --- - '"" MICHAEL R. FORD Consultant Deloitte Haskins & Sells Consultant Mr. Ford joined Deloitte Haskins & Sells in August of 1984 after completing a dual Master's degree program at Ohio State University. While attending graduate school, Mr. Ford worked directly with both state and local governments on a variety of projects. Mr. Ford assisted in performing a computerized cost/benefit analysis on the Midday Fare Structure for the Central Ohio Transit Authority. In addition, he has assisted in developing a public land information system for the City of Columbus, Ohio. Both projects included collecting, tabulating and analyzing data. Mr. Ford has a strong knowledge of the city planning process. In addition to receiving a Master's degree in City and Regional Planning, he has also developed land use and thoroughfare proposals for the General Plan in Marysville, Ohio. With Deloitte Haskins & Sells, Mr. Ford has worked as Lead Consultant on a number of engagements. He most recently completed a management/fiscal review of three Community Redevelopment Agencies for the Los Angeles County Grand Jury, including the City of Los Angeles. City of Huntington Beach Los Angeles County Grand Jury . Community Redevelopment Agency of the City of Los Angeles . City of Alhambra Community Redevelopment Agency . City of Industry Urban Development Agency County of San Bernardino City of Oceanside County of Orange -28- r. " J ..,..... MICHAEL R. FORD Education: , I L L [ [ [J "CoIf:' i i. L I r ~. '.., ,/ ./ Bowling Green State University, Ohio, B.A. Master of Arts in Public Administra~on, Ohio State University Master of City and Regional Planning, Ohio State University -29- r - I "'---- I I l I [" L [- l"'"'"" I L I r [' Role in EnRaRement: Experience: Examples of Clients Served: Professional Activities: r- - ',",..;' SCOTT G. MILLER Consultant Deloitte Haskins & Sells Consultant Prior to joining DH&S, Mr. Miller held several positions within the public sector. His major responsibilities: personnel, training, purchasing, contract administration, public relations, budgeting, program analysis/evaluation, development of information systems, and general management. Mr. Miller also instructed at both the university and community college levels in major public sector issues. Mr. Miller is currently a consultant for DH&S public sector clients. County of San Diego California State University, Long Beach Member, American College Personnel Association, Commission III Life Member, American Psychological Association Honor Society Life Member, Pi Alpha Alpha, Public Administration Honor Society Life Member, Alpha Iota Epsilon Business Management Honor Society Member, Banquet and Awards Committee Member, Municipal Management Assistants of Southern California, 1984-85 Member, International City Managers Association, 1984-85 Member, International Personnel Management Association, 1981-85 Member, Conference Program Committee, American Society of Public Administrators, Region X, 1984-85 Gold Pin Award/Life Member, National Association of College and University Residence Halls, Inc. -30- '- I . Scott G. Miller '- Education: l [ 11 [ n ( I: [ [ I '" -, - ---~,--,_..- - ...,,/ Member, Citrus Belt Regional Champion, Executive Board Member, Municipal Management Assistants of Southern California D.PA., All but dissertation. Arizona State University -- Doctor of Public Administration. M.Ed., University of Georgia B.A., San Diego State University -31- " '."->..... ,-,,,v VI I. PROJECT COST SUMMARY L I l [ [] [ n /' I:'" [ [ [ [ We estimate our total fees for this engagement to be $29,000 plus expenses. Our estimated hours for completing the project are approximately 440 hours. Billings will be for the actual amounts incurred based on our proposed daily rates (which are significantly below our normal commercial rates). Our fees and estimated hours are based on the project scope described in this proposal. If the project scope is changed, we would obtain your approval prior to incurring additional changes. ~ -32- ....,..". "..,,,, A PRlPOSAL TO THE REDEVELlPMENT AGENCY OF THE CITY OF SAN BERNARDINO (~ Prepared By: RALPH ANDERSEN & ASSOCIATES 1446 Ethan Way Suite 101 Sacramento, California 95825 (916) 929-5575 59SO Berkshi re Suite 800 Dallas, Texas 75225 (214) 891-3091 February 10, 1986 ,-;, (~ ,"" "" , '" ';".".. Ralph Andersen & Associates 1446 Ethan Way Suite 101 Sacramento. CA 95825 (916) 929,5575 3880 West Northwest Highway Suite 230 Dallas, TX 75220 (214) 956-7097 February 10, 1986 Ms. Sandra A. Lowder Manager--Redeve1opment Division Redevelopment Agency City of San Bernardino 300 North "D" Street San Bernardino, California 92418 Dear Ms. Lowder: We are pleased to have been requested to submit the enclosed Pro- posal to assist the Redevelopment Agency of the City of San Bernar- dino by conducting an analysis of the economic implications of implementing a prevailing wage requirement for all projects within the Agency I s Redevelopment Project Areas. The enclosed Proposal presents a deta i 1 ed di seussi on of our understandi ng of the ass i gn- ment, our approach to the assi gnment, and the qual i ficati ons of our firm. Our Proposal is based upon: Our telephone conversati ons and meeti ng with Mr. Morse Topper to review the background, objectives, and concerns relative to the assi gnment Our in-depth understanding of the redevelopment process and activities of redevelopment agencies throughout the state. Our extensive experience in analyzing the fiscal and economic impacts of development and redevelopment. We would view our role in this assignment as staff to the City and the Redevelopment Agency. In this capacity, we will conduct the necessary research and analysiS that will result in clearly docu- mented findings and conclusions and provide a factual basis for decision-making. Our consultant staff will work closely with you, your staff, and other interested parties as necessary throughout the ass i gnment. We look forward to an opportunity to be of assi stance to the Rede- velopment Agency and the City on this important analysis. As you may know, Ral ph Andersen & Associates has four separate, but inter- related divisions which inclUde the Financial Management, Personnel Management, Organi zati on and Management, and Executi ve Recruitment ____l--___"'~._~...,__~~~____~_.._'.','_,__~___,_,__ . ...__..~____. , ., (~ "..",,~~' Ms. Sandra A. Lowder San Bernardino Redevelopment Agency Page Two ',,,,,,, Divisions. Our Financial Management Division has extensive experi- ence in evaluating the feasibility and implementation of redevelop- ment. Our finn has a uni que1y comprehensive understanding of the activities and practices of all redevelopment agencies in California as a result of our recently completed study of every redevelopment agency in the state. This study was conducted for the Cal ifornia Debt Advisory Commission pursuant to the Legislature's direction in SB936 , and involved gathering and evaluating infonnation on how redevelopment is being utilized by each of the 273 Redevelopment Agencies in the state. This comprehensive knowledge and understand- ing of redevelopment helps us to better serve our individual clients in achieving practical analyses and results. In addition, our firm has extensive experience in public finance and economics, particularly including analyses of the financial feasi- bility, fiscal impact, and economic impacts of large and small deve 1 opment projects throughout the western states. Secti on II I of the enclosed Proposal includes an extensive 1 isting of our qual ifi- cations and experience in public finance and economics, and the Appendix includes a complete list of clients. The following are illustrative examples of completed assignments involving analyses of redevelopment as well as the financial feasi bil ity and fiscal/eco- nomic impacts of development: CLI ENT REDEVELOPMENT ANALYSES NATURE OF PROJECT City of Chico/Chico Redevelopment Agency Assistance to the City/Agency in providing the overall coordination and specific analyses necessary for the formation of the Central Chico Redevelopment Project. The scope of work included documentation of blight, tax increment revenue fore- casts, preparation of the Preliminary Re- port and Report to Council as required by law, and assistance to the Agency's legal counsel in preparing the Preliminary Plan and Redevelopment Plan, as well as all necessary staff assistance required throughout the formation process. - / (~ Ms. Sandra A. Lowder San Bernardino Redevelopment Agency Page Three CLIENT Redevelopment Agency of the City and County of San Francisco Southern California Executive Directors Association ~~- City of Novato City of Campbell "- NATURE OF PROJECT Continuing financial advisory assistance and specific analyses of financial feasi- bility of projects, including the North Beach/Rincon Point project and util ization of tax increment revenues for the fi rst time in the Agency's history. A comprehensive study of the tax increment fi nanci ng system throughout the State of Cal ifornia to determine the extent of its application and use, identify any problems associated with the use of this financing mechani sm, and to de vel op recommendati ons regarding ways to improve the system. This study was funded on a cooperative basis by essentially every redevelopment agency in the State. The results of the study provided the basi s for 1 egis1 ative amendments that created the framework for the California Community Redevelopment Law. Assi stance in implementi ng a redevelopment plan for a 400 acre area of the City, in- cluding a financial feasibility analysis, assessi ng the impact on other taxi ng agen- cies and preparation of reports required for imp1 ementation of redevelopment, in- cluding particularly the Report to Council required hy Section 33352 of the Health and Safety Code. An assessment of the feasibi1 ity and fiscal imp1 ications of the proposed Campbell Re- development Project, including a forecast of tax increment funds that could be avail- able. A related project concurrently iden- tified feasible financing alternatives for the acquisition of sur'p1us school sites in conjunction with redevelopment. \''-'' ..,' , j (~ .,~ Ms. Sandra A. Lowder San Bernardino Redevelopment Agency Page Four CLI ENT NATURE OF PROJECT City of Rancho Mirage An assessment of the economic feasibility and impact of redevelopment and tax incre- ment financing. This study was followed by two other assignments related to the implementation of redevelopment, including assistance in the sale of tax allocation bonds. City of Pasadena An analysiS of the relationship between school finances and redevelopment, inc1ud- i ng how the use of tax increment fi nanci ng affects the revenue-raising ability of a school di strict, and an ex ami nati on of the impact redevelopment has had on the assessed valuation of adjacent areas. FINANCIAL/ECONOMIC ANALYSES AND FORECASTS ....... League of California Cities Development of a revenue and expenditure forecasti ng manual that has been publ ished and distributed to all Cal ifornia cities. In connecti on with the project, we con- ducted a statewide seminar for local gov- ernment official s on revenue and expendi- ture forecasting. City of Arlington, Texas Development of the computeri zed Ar1 i ngton Economi c Impact Mode 1 (AEIM), whi ch pro- vi des the Ci ty wi th a conti nui ng means of assessi ng the fi sca1 impact on City gov- ernment, as well as the overall economic impacts on the cOlllDuni ty tha tare the re- sult of both existing and new develop- ment. The systems of AEIM determine the cost vs. revenue impact on the City, and economi c impacts such as employment, per- sonal income, and total economic output for individual development proposals, as well as alternative land use plans. Simi- 1 ar systems ha ve been developed for the City of Newport Beach, California and Lake- wood, Colorado. '.--.,...' ~'...~ ,. # (~ Ms. Sandra A. Lowder San Bernardino Redevelopment Agency Page Five CLI ENT NATURE OF PROJECT ~''',- An evaluation of the financial feasibility of planned development of the Freeport Marina complex. The stuqy included an assessment of the market support for 580 berths and related marina services, 54,000 square feet of retail commercial, five restaurants, and an R. V. campground. A 10 year forecast of operating revenues/ costs and debt service requirements was prepared to evaluate the financial feasi- bility of two operating alternatives. An analysis of the fiscal impact of a 286 acre development of residenti al, com- mercial, and industrial uses, including an assessment of the revenue and expenditure impact on the Cities of Anaheim and Yorba Linda if the development were to be annexed to either city. In additi on to the above, we are presently provi di ng assi stance to the Marin County Redevelopment Agency in amending the Redevelopment Plan for the Marin City community and the City of Dixon in adoption of a Redevelopment Plan. We also recently concluded preparation of a fiscal impact analysis and infrastructure financing plan for the recently-approved North Natomas Project in the City of Sacramento, which will be a 9,300 acre development of commercial, industrial, and residential uses, as well as private development of a professional sports stadium and arena which will be the permanent home of the Sacramento Kings basketball franchise. Sacramento County SAVI Development Corporati on We have carefully prepared the enclosed proposal to fully accomp1 ish your Objectives for this assignment. We look forward to an oppor- tunity to be of assistance on this important analysis. If you have any questions or woul d like additional information, please contact Mr. Jim Harrington, Vice President and Manager of the firm's Finan- cial Management Division, in our Sacramento headquarters office. Si ncere1y, -- Ralph Andersen & Associates ............ '"' '" TABLE IF CONTENTS (~ - ","",0" - SECTION I--OUR UNDERSTANDING OF THE ASSIGNMENT (~ -,.,,", The Redevelopment Agency of the City of San Bernardino was estab- lished in 1952, and has established 10 Redevelopment Project Areas which comprise a total of approximately 6,127 acres. In addition a new Uptown Redevelopment Project is currently being established. The Redevelopment Agency has had an active involvement in the economic revitalization with the Project Areas, and as of 1983-84 had approximately $85.0 million in outstanding debt that has been utilized for redevelopment purposes. In addition to this direct involvement, the Redevelopment Agency had extensive direct and indirect invol vement in the revitalization of the community. In addition to these various activities, the Redevelopment Agency has recently been requested to require that prevailing wage rates be payed by all developers and contractors within the Agency's Project Areas. ."",4 The apparent intent of thi s request is to further enhance the econ- omy of the City as a result of the increased wages, and other poten- tial increases in local economic activity that may be a result of the increased personal income of those employed in construction. The Redevelopment Agency is concerned that there may be economic costs as well as benefits which could result from a required payment of prevailing wages. Could the required increase in wages raise the costs of development/redevelopment in San Bernardino to the point of not being feasible, or at least less competitive with other areas? Are there other economic advantages and/or disadvantages which haven't been identified or considered? "- In order to have a factual basis for decision-making on the impor- tant questi on of whether prevail i ng wages should be required for all development in Redevelopment Project Areas, The City/Agency has decided to retain professional consulting assistance. In general, the consultant should assess the economic costs vs. benefits of the 1 ..... ,- ". " (~ "'-"' Redevelopment Agency requiring developers/contractors to pay pre- vailing wage. rates. Among other things, the consultant's analysis should include an evaluation of: Impact on the City's ability to attract new construction Impacts on the local economY, such as: - Increased salaries/personal income _ Economic multiplier impacts on employment, taxes, etc. Impacts of businesses diverted/lost to other cOlllDunities as a result of potentially uncompetitive labor costs Other economic advantages/disadvantages. '~ The foll owi ng secti on of thi s Proposal descri bes a proposed scope of work that will be completed by Ralph Andersen & Associates to address these and other questions relative to the economic implications of a prevailing wage rate requirement. '......- 2 ...." .....' -","", SECTION II--OUR APPROACH TO THE ASSIGNMENT (~ .~ SUIf4ARY OF OUR APPROACH In order to assure that we thoroughly and completely accomplish the objectives for this assignment, we have carefully prepared a work- plan specifically designed for this project. In general, our approach will be to serve as staff to the City and the Redevelopment Agency in providing the analyses and data gathering needed for find- ings and conclusions that will provide a factual basis for deci- sion-making on the question of whether prevail ing wages should be requi red. """- Our workplan involves completion of a series of five major tasks which, in turn consist of a series of sub-tasks. It should be noted that a number of the tasks would be conducted concurrently with the work of other tasks or sub-tasks, but are described separately so as to clearly identify the elements of work. The following provides a summary of our workplan, which is then followed by detailed descrip- tions of each of the phases and tasks. WORKPLAN SUIf4ARY TASK l--REVIEW AND FINALIZE STUDY OBJECTIVES, WORK PROORAM, END-PRODUCTS, AND TIMING -- TASK 2--INITIAL RESEARCH ANO OATA COLLECTION 2.l--Conduct I ntervi ews With Agency Staff, Uni on Repre- sentatives, Developers/Contractors, And Others As Appro- priate 2.2--Gather, Review And Analyze Data On Prevailing Wages And Open Shop Rates 3 - - _...._--_._~>--_._---~. - - "",", ' '-.- (~ 2.3--Survey Other Redevelopment Agencies In The Regi on Regarding Prevailing Wage Rate Requirements 2.4--Gather, Review And Analyze Cata On The Economics Of Deve 1 opment 2.5--Gather Applicable Econometric Data Available On The Impacts Of Development ."""".... TASK 3--ANAL VIE THE OVERALL I""ACTS OF PREVAILING WAGE RATE REQUIREMENTS 3.l--Analyze The Direct Economic Impacts Of Prevailing Wage Rates Vs. Open Shop Rates 3.2--Analyze The Econometric fl\Iltiplier Effects Of Pre- vailing Wage Rates Vs. Open Shop Rates 3.3--Analyze The Impacts On The Economics And/Or Feasi- bility Of Development With Prevailing Wage Rates Vs. Open Shop Rates 3.4--Analyze Potenti al Impacts Of Any Reducti ons In Development That May Result Fran Prevailing Wage Rate Requi rements TASK 4--CONDUCT SPECIFIC CASE STUDIES OF REPRESENTATIVE PROJ- ECTS IN SAN BERNARDINO REDEVELOPMENT PROJECT AREAS 4.l--Identify Representative Case Study Projects Within Redevelopment Project Areas 4.2--Analyze Agency Data On Sel ected Case Study Projects To Assess Impacts On Feasibility If Prevailing Wages Were Requi red 4.3--Identify And Analyze Economic Effects Of Prevail ing Wage Impacts On Case Study Projects '-''''--'. 4 "",~ "',-" (~ ',.--> TASK 5--PREPARE AND PRESENT STUDY FINDINGS AND CONCLUSIONS REGARDING THE ECONOMIC IMPLICATIONS OF PREVAILING WAGE RATE REQUIREMENTS 5.l--Prepare A Comprehensive Draft Final Report For Review Wi th Redevelopment Agency Staff And Others As Appropriate 5.2--Prepare And Present A Comprehensive Final Report The following provides a detailed description of the tasks and sub- tasks that are outlined above. OUR PROPOSED WORKPLAN "- TASK l--REVIEW AND FINALIZE WORK PROORAM AND TIMETABLE In order to assure that the study and its resulting end-products thoroughly address all matters of concern, our project team will initially review the overall work program with the staff of the Redevelopment Agency, and others as appropriate. These meetings will help to initiate the assignment with a complete and mutual understanding of the project's scope, objectives, approach, tim- ing, end-products, and related concerns. Of particular import- ance will be the finalization of a specific timetable for com- pletion of the study which would serve as the overall guide for relating and coordinating the activities of the Agency's staff, and our project team. ',-<""", TASK 2--INITIAL RESEARCH AND DATA COLLECTION This task includes a series of five sub-tasks which are designed to provide the consultants with the necessary background infor- mation and data required for subsequent analytical tasks. This work program anticipates the use of data from available sources 5 ".".... ,. (~ ,- rather than original research (e.g. development of a specific econometric model for San Bernardino). Project consultants will work closely with Redevelopment Agency staff, as well as iden- tify and review available data fran City/Agency records, publi- cations and established econometric models. This will be accom- plished by completion of the following sub-tasks: ....., 2.l--Conduct Interviews With Agency Staff, Union Represen- tatives, Developers/Contractors, And Others As Appropriate Project consultants will conduct a series of interviews with key individuals with an interest or concern relative to the question of a prevailing wage rate requirement. It is anticipated that these will be conducted in one day, and include Redevelopment Agency staff, as well as interested uni on representati ves, de vel opers/contractors and others as appropriate. 2.2--Gather, Review And Analyze Data On Prevail ing Wages And Open Shop Rates Project consultants will research, identify and review available data/publications on prevailing wage rates and open shop rates for constructi on in the San Bernardino area. This data will provide the consultants with informa- tion necessa~ to identify the differences between prevail- ing wage rates and open shop rates, in order to assess the economic impacts of with and without a prevailing wage rate requi rement. b,,~....- 2.3--Survey Other Redevelopment Agencies In The Region Regarding Prevailing Wage Rate Requirements Other redevelopment agencies in the San Bernardino region will be surveyed to identify how many have adopted prevail- ing wage rate requirements as proposed for San Bernardino. 6 ........",.. (~ --' For those that have similar requirements, the survey will include a review of those agencies' experience and any documented or perceived advantages and disadvantages. This survey will be enhanced by Ralph Andersen & Associates' recent experi ence in conduc ti ng the s tatewi de su rvey and analysis of the activities of all redevelopment agencies in California. 2.4--Gather, Review And Analyze Data On The Economics Of Development Project consultants will identify, review and analyze available data on the economics of development and con- struction. As appropriate and available, information will be obtained fran City records, publications, and other resources, as well as Ralph Andersen & Associates' exten- sive experience in analyzi ng the fi scal impact and fi nan- cial feasibility of various development proposals. 2.5--Gather Applicable Econometric Data Available On The Impacts Of Development A number of econometric models have been developed that assess the economic impacts of marginal or incremental changes in the economY, such as changes in employment, per- sonal income, investment, etc. Project consultants will research and identify appropriate econometric data that is available to assist in an analysis of the economic impacts of a prevailing wage rate requirement. This sub-task does not anticipate development of original econometric datal model s specific to the City of San Bernardino, but will utilize data of previous studies and/or publications. - 7 ,"".. (~ TASK 3--ANAL VZE THE OVERALL I""ACTS OF PREVAILING WAGE RATE REQUIREMENTS In general, this task will utilize the information gathered in the precedi ng task to analyze and assess the overall impacts of a prevail i ng wage requi rements. As a resul t, thi s task will provide the basis for findings and conclusions as to the advan- tages and disadvantages of a prevailing wage requirement in terms of the overall economic impacts. This will be accom- plished by completion of the following sub-tasks: '~...,... 3.l--Analyze The Direct Economic Impacts Of Prevailing Wage Rates Vs. Open Shop Rates Utilizing the data gathered in the preceding tasks, project consultants will develop an assessment of the direct eco- nomic impacts of a prevailing wage rate requirement in terms of such indicators as jobs, personal income, economic output, etc. The analysi s will assess these impacts with and without a prevailing wage rate requirement in order to assess the net impact. 3.2--Analyze The Econometric Multiplier Effects Of Prevail- ing Wage Rates Vs. Open Shop Rates Using the data gathered in sub-task 2.3 above, project con- sultants will assess the economic multiplier effects of a prevail ing wage rate requi rement. Thi s analysi s will take into consi derati on potenti al increases in economic acti vity , (such as personal income increases), as well as potential decreases, if any, (such as reduced development) that could occur with and without a prevailing wage rate requirement. ";'""",-,"' 8 ,.., (~ 3.3--Analyze The Impacts On The Economics And/Or Feasi- bility Of Development With Prevailing Wage Rates Vs. Open Shop Rates This sub-task will provide a general assessment of the impacts that a prevail i ng wage rate requi rement coul d have on the economics and/or feasibility of development. This task will permit an evaluation of the potential for dis- couraging or reducing new constructi on in the City as a result of such a requirement. 3.4--Analyze Potenti 81 Impacts Of Any Reducti ons In Devel- opment That May Result Fran Prevailing Wage Rate Require- ments Based upon the information of the preceding sub-task, proj- ect consultants will analyze the potential economic impacts that could result should there be a reduced ability to attract new construction as a result of a prevailing wage rate requi rement. To the extent that the City may become less competitive, consultants will assess the potential one-time and continuing economic impacts that could result from lost construction actiVity. TASK 4--CONDUCT SPECIFIC CASE STUDIES OF REPRESENTATIVE PROJECTS IN SAN BERNARDINO REDEVELOPMENT PROJECT AREAS Thi s task is intended to provi de speci fic examples of how the overall economic impacts of a prevailing wage rate requirement could affect development in San Bernardino. This will be accom- plished by identifying representative case studies which would be actual developments that have occurred recently in the City's Redevelopment Project Areas. Using available data on these case study developments, the effects of a prevailing wage requirement will be identified and evaluated to determine the specific impacts that would apply to these specific actual cases. Thi s 9 '",.' ,", ,... "' (~ case study analysis will be accomplished by completion of the following sub-tasks: 4.l--Identify Representative Case Study Projects Within Redevelopment Project Areas Project consultants will work in concert with staff of the Redevelopment Agency to identify representative projects for which sufficient data is available to permit an ade- quate case study analysis of the effects of a prevailing wage requi rement. Projects selected as case studies should be sufficiently typical so as to permit conclusions and inferences relative to the impacts on other developments in the City. ~",~,,,,' 4.2--Analyze Agency Assess Impacts On Required Data on the selected case studies provided by the Agency and/or developers will be analyzed by the project consul- tants to assess specific impacts had a prevailing wage rate been requi red for those developments. Among other thi ngs, the analysis will include an specific assessment of the effects on project's profitability and/or viability if there had been a prevailing wage requirement. Data On Selected Case Study Feasibil ity If Prevail ing Projects To Wages Were 4.3--Identify And Analyze Economi c Effects Of Prevail i ng Wage Impacts On Case Study Projects Given the preceding analysis of the extent, if any, of impacts on the case studies' viability, this sub-task will assess the economic impacts which would have resulted from a prevailing wage rate requirement. It is anticipated that there would likely be both positive and negative effects of ""-y~' 10 - --~_._----_._-- -.- ---_._---~---~,~ - - - ", .",,/ (~ "--..- such a requirement, and this sub-task will provide specific illustrative examples using the case study development projects. ............... TASK 5--PREPARE AND PRESENT STUDY FINDINGS AND CONCLUSIONS REGARDING THE ECONOMIC IMPLICATIONS OF PREVAILING WAGE RATE REQUIREMENTS This task will result in the documentation of the analysis, findings and conclusions of the preceding tasks of this workplan in a comprehensive report. The report will be prepared initi- ally as a draft for review by the Redevelopment Agency, and others as appropriate; and then as a final report which reflects any comments or suggestions received from those that have reviewed the draft. Both the draft and final reports will be thorough but concise and in a format that facilitates under- standing by the non-technical reader. As appropriate, the report will include tables, charts and graphs to illustrate findings. and conclusions of the analysis of the economic implications of a prevailing wage requirement. The draft and final reports will be the result of the following sub-tasks: 5.l--Prepare A Comprehensive Draft Final Report For Review With Redevelopment Agency Staff And Others As Appropriate The draft report will be complete in every respect and clearly document and present the analysi s, findings and conclusions of the study. However, the report will be pre- sented initially as a draft to permit a review and comments by staff of the Redevelopment Agency, and others as appro- priate. Project consultants will meet with Agency staff to review the report and receive any comments or suggestions. -- 11 , ,. ,,., ~ (~ 5.2--Prepare And Present A Comprehensive Final Report Project consultants will incorporate any changes into the report that may be appropri ate as a resul t of comments received on the draft report, and prepare a final report. Project consultants will then be prepared to make a presen- tation of the report. This workplan anticipates one pre- sentation, however project consultants will be pleased to make additional presentations on the basis applicable bill- ing rates and reimbursement of actual expenses incurred. ...,... The preceding workplan is intended to meet the objectives of the Redevelopment Agency of the City of San Bernardino for a study of the economic implications of a prevailing wage rate requirement. The following sections present the experience and qual ifications of Ralph Andersen & Associates that will ensure a thorough and timely completion of the study workplan. .- 12 "..# ',..... ~_.. SECTION III--CORPORATE QUALIFICATIONS (~ This section of our Proposal describes Ralph Andersen & Associates qual ifications and experience. In addition to the related experi- ence presented in the transmittal letter at the beginning of this Proposal, this section presents other projects indicative of the experience of Ral ph Andersen & Associates in the area of publ ic finance and economics, followed by specific contacts as references in the next section of this Proposal. THE FIRM -- Ralph Andersen & Associates was organized in 1972, and operates as a California corporation. With headquarters in Sacramento, California and a branch office in Dallas, Texas, the firm provides a broad management consulting capacity to state and local public agencies, as well as to the private sector. Areas of expertise encompass organization/management, personnel, economics/public finance, and executive recruitment. Full-time staff are thoroughly famil iar with the operation of government at all levels, and each has had practical administrative experience in government prior to joining the firm as a consultant. Emphasis in all assignments is placed on a thorough and Objective approach, with results that are practical and capable of being implemented. Ral ph Andersen & Associ ates has worked successfully with clients at all levels of government, as well as the private sector. For exam- ple, at the nati onal level, we have assisted the Department of Hous- ing and Urban Development, the Fire Prevention and Control Adminis- tration, and national organizations such as the Municipal Finance Officers Associ ation, National League of Cities, and the Interna- tional City ~lanagement Association. At the state government level, ..,,--- 13 '.." " . / (~ examples include our work with the Oregon State Judicial Department, the Cal ifornia Legi sl ature, Assembly Rul es Commi ttee, Auditor General, Judicial Council, State Personnel Board, Department of Finance, Office of Planning and Research, and various other State Departments and Commi ss ions. From a local government standpoi nt, the firm has worked successfully with cities, counties, school dis- tricts, and special districts in California, Oregon, Washington, Alaska, Kansas, Nevada, Colorado, Iowa, Arizona, and Texas. Private organi zati ons for whi ch assi gnments have been undertaken incl ude major financial, retailing, manufacturing, land development and service corporations. As a firm, Ralph Andersen & Associates serves clients in both the public and private sector through four operating divisions which include: FINANCIAL MANAGEMENT DIVISION--On a continuing basis, the firm provides staff assistance to the California Society of Municipal Finance Officers by analyzing and reporting on legislation in the area of public finance. In cooperation with a number of professional public sector associations, the firm regularly pro- vides staff assistance for statewide and regional conferences on recent developments in public finance for county, city and special district managers and finance officers. -- The Financial Management Divi si on provi des consulti ng assi stance on a wide range of complex and technical assignments. These projects typically include assignments such as: preparing financing plans and revenue/expenditure forecasts; developing and eval uati ng financi al management systems; developing recom- mendations for alternative financing approaches, including vari- ous forms of capital improvement and service financing; assess- ing the fiscal impact of new development, incorporations or 14 ,'.., " .....,,'-. " / (~ annexations; determining the feasibility of redevelopment and preparing redevelopment plans and other necessary analyses and documents for implementation of the redevelopment process; devel opi ng budget rel ated systems and financi al systems; util ity rate studies; and conducting cost recove~ and fee policy analy- sis assignments. - ORGANIZATION AND MANAGEMENT DIVISION--The Organization and Man- agement Division assists public agency clients in identifying methods to improve operations, achieve econonries and deliver services efficiently and effectively. Assignments undertaken in the area of organization and management typically include the responsi bil ity for eval uati ng the total operation of an enti re agency or of a particular department. The firm has also assisted two or more agencies in evaluating organizational questions related to consolidation or the delivery of service on a joint or cooperative basi s. Several major assi gnments have included address i ng the issue of whether to contrac t or provide servi ces directly. In all organization and management assignments under- taken, a thorough review of the current situation, staffing patterns and administrative systems is included. Following a complete analysis and documentation, recommendations for improvement are made and an implementation plan prepared. PERSONNEL MANAGEMENT DIVISION--The firm continues to be a leader in providing small, medium, and large cl ients with results- oriented assistance in a wide variety of personnel-related assignments. Our comprehensive services include position classification and compensation analysis; installation of job evaluation systems; development of complete personnel systems including the preparation of personnel rules, regulations and "'......~ 15 '."",- -~", (~ ordinances; analysi s of management compensati on and development of performance evaluation systems; and conducting analysis of employee benefit plans. EXECUTIVE RECRUITMENT DIVISION--Comprehensive executive recruit- ment services are provided to public and non-profit organizations and public agency associations throughout the Western States. Executive recruitment assignments include both technical and administrative positions. These assignments are typically con- ducted on a nationwide basis and our work in this area has grown to make thi s Di vi si on of Ralph Andersen & Associ ates one of the largest search firms in the nation specializing in public agency executive recruitments. "'-.... RALPH ANDERSEN & ASSOCIATES--EXPERIENCE IN FINANCIAL MANAGEMENT - The Financial Management Division of Ralph Andersen & Associates brings to each assignment a broad range of experience in public finance and economics which is necessa~ to adequately and completely address the variety of concerns and issues relati ve to effecti ve financial management. For over 14 years, the firm has successfully completed assignments in the area of public finance that have pro- vided practical analyses and solutions for large and small public agencies at all levels of government. These assignments have ranged from specific determinations of fiscal impact and financing issues relative to redevelopment, new development, annexations, and incor- porations; to analyzing short-range and long-term revenue needs and financing alternatives, including the development of long-term finan- cial plans and financial management systems. Typical public finance and economics assignments have included: 16 I I ",..._" (~ Evaluation of financial management systems and development of improved systems for managi ng the fi nanci al resources of pub- lic agencies. Preparation of financial feasibility studies and fiscal impact reports for proposed incorporations, annexations, and new development. Determi nations regardi ng the short- term and long-range impact and implementation requirements of changes in laws, such as California's Propositions 13 and 4 Tax limitation initiatives. Review and analysis of local agency operati ng and capital budgets including the development of budgeting systems and procedures. Analysis of local agency revenue needs, including the fore- casting of revenues and expenditures. Analyses for enhancement of local revenues, including the revi- sion of revenue sources such as the business license tax, and development of alternative revenue sources. Analysis of the feasibility of utilizing redevelopment and tax increment financing, and comprehensive assistance in imple- menting the redevelopment process through adoption of a Redevelopment Plan. Analysis of long-term financing alternatives, including various debt financing methods such as revenue bonds, improvement bonds and special assessments, as well as various pay-as-you-go financing methods. 17 , (~ Preparation of long-term financial plans and strategies for infrastructure and service needs, and cost recovery methods and systems. The foll owi ng are examples of the range of projects completed by our Financial Management Division: FINANCING METHODS, AND FINANCIAL FORECASTS AND PLANS NATURE OF PROJECT AGENCY League of California Cities -... Contra Costa County City of Davis ".""", Development of a revenue and expen- diture forecasting manual that has been published and distributed to all California cities. In connec- ti on wi th the proj ec t, we conduc ted a statewide seminar for local govern- ment officials on revenue and expenditure forecasting. Development of a comprehensive financing plan for infrastructure facilities needed to serve the rapidly developing Oakley Community. The Oakley Infrastructure Financing Plan includes roads, parks, fire protection, and school facilities needed to serve this 4,566 acre unincorporated area of the County that will have a population of approximately 40,000 at build-out. Preparation of a complete review of alternatives available for financing a multi-level parking structure in downtown Davis. The report included a review of the legal basis/auth- ori ty, advantages/di sadvantages, and impl ementation of each available fi nanci ng method. 18 '"".'''' ~ > AGENCY San Joaquin County City of Redondo Beach Mono County City of Rancho Palos Verdes -',,-,", (~ NATURE OF PROJECT Preparation of a financing plan for all infrastructure facilities required for the County to develop a 450 acre busi ness park surround1 ng the County-owned Stockton Municipal Airport. The Airport Corporate Center Financi ng Plan provi ded recommended methods and an implemen- tation plan for financing road, water, sewerage, and drainage faci- 1 i ti es to permi t development of the County-owned land. Two separate studies: the first involved a comprehensive review of a $9 milli on improvement program and seven year revenue and expenditure forecast for the City-owned King Harbor Marina facility; a second study encompassed a comprehensive forecast of City revenues and expen- ditures for operati ons, mai ntenance and capital improvements. An assessment of all transportati on financing needs throughout the County relative to projections of current revenue sources, and development of recommended fi nanc1 ng a 1 ternati ves for identified deficiencies. The study encompassed operation and maintenance needs as well as capital construction needs for roads, tran- sit and airport facilities. Preparation of a 10 year long-term financial plan, including a forecast of revenues and expenditures and the development of recommended funding al ternatives and strategies to pro- vide for the City's financing needs through the ti me of buil d-out of the general plan. 19 , AGENCY City of Folsom City of San Jose "...,.....- Pl acer County County of San Diego "- ... ,-< . (~ NATURE OF PROJECT A financing plan for public improve- ments in the Folsom South Study Area, resulting in a comprehensive plan for financing all public improvements necessa~ to serve development of a 3,429 acre area as commercial, residential and indus- trial uses. Facilities to be fi nanced i nc 1 ude roadway, water, sewer, drainage, and fi re stations as well as equipment for police, fire, street maintenance, etc. Development of feasible tax exempt financing methods for the construc- tion of facilities at a City park site to relocate Marine World-Africa U.S.A., a private theme amusement park, from its present site to the City of San Jose. In concert with planning and engine- eri ng fi rms, this study assessed the overall fiscal impact of major high technology industrial development and associ ated resi denti al and commercial development in South Placer County, including the devel- opment of plans for financing the cost of public improvements. A comprehensi ve review and i dentifi- cation of financi ng methods appl i c- able to all current and projected facil ity and equipment needs of the County of San Diego. The resul t was a complete manual of applicable financing methods. 20 , (~ AGENCY REDEVELOPMENT/TAX INCREMENT FINANCING NATURE OF PROJECT City of Novato Provi si on of assi stance to the City of Novato ~n the formation and adop- tion of a ,redevelopment plan for a 400 acre area of the City. Assist- ance i nc 1 uded the fi nanci a 1 feasi - bility analysis of redevelopment, i nc 1 udi ng tax increment forecasts and assessment of fi scal impact on affected taxing agencies; assi stance in meetings with the County Fiscal Revi ew Committee; and preparati on of the Report to Counci 1 requi red by Sec ti on 33352 of the Heal th and Safety Code. California Debt Adviso~ Commission Comprehensive assistance in imple- menting redevelopment in the central/ downtown area of the City. All necessary assistance and coordina- ti on was provi ded (except 1 egal assistance) for establishing the Central Chico Redevelopment Project, including initial feasibility analy- sis, and preparation of necessary documents for adoption of the Redevelopment Plan, including the Prel imi nary Report, tax increment forecasts, blight survey and docu- mentation, and the Report to Council. As directed by the California Legis- lature in passing 58936 in 1983, we conducted a comprehensi ve survey and analysis of the activities of each of the 263 City redevelopment agen- cies and 10 county redevelopment agencies in California. The final report ti tl ed The Use of Redeve 101>.- ment and Tax Increment FlnanCl n Ii' 1 les an oun les, nc u e statls- tics from each agency and statewide, as well as findings and conclusions as to the accompl ishments of rede- velopment throughout the state. City of Chico '4~.<' - 21 ,," AGENCY City of Dixon City of Pasadena City of Porterville Southern California Executive Directors Association .- ~ (~ NATURE OF PROJECT An analysis of the feasibility of usi ng the redevelopment process in the City's downtown area, including an evaluation of the conditions in the area that would justify redevel- opment under legal requirements for blight, determining the assessed value, and forecasting tax increment revenue that would be available for redevel- opment projects. An analysis of the relationship between school finance and tax increment financing including how the use of tax increment financing affects the revenue-raising ability of a school di strict given the pro- vi si ons of 5890 and AB1267, and an examination of the impact redevelop- ment has had on the assessed val ua- tion of adjacent areas. An assessment of the implications of tax increment financi ng and the redevelopment process in the City including specifically a forecast of assessed value and resulting tax increment revenue, and an analysi s of the implications for other local taxi ng agencies i ncludf ng the County, Schools, and Communi ty Co 1- lege District. A comprehensive study of the tax increment financing system throughout the State of Cal i forni a to determi ne the extent of its application and use, identify any problems associ- ated with the use of this financing mechani sm, and to develop recommen- dations regarding ways to improve the system. This stUdy was funded on a cooperative basis by essen- tially every redevelopment agency in the State. The results of the study provided the basi s for 1 egislati ve amendments that created the frame- work for the current Cal ifornia Community Redevelopment Law. 22 ---,~, -- '..-' '- " (~ AGENCY NATURE OF PROJECT Southern California Executive Directors Associ ati on An analysis dealing with the impact of redevelopment activities on hous- ing including an exami nati on of the before and after nature of housing within redevelopment projects in terms of how many housing units have been eliminated, newly constructed or rehabilitated. City of Campbell An analysis providing basic infor- mation concerni ng how the redevel- opment process works, how such activities can be financed, and a step-by-step procedural guide to the redevelopment process. An examina- tion of problems and alternatives for a shoppi ng center project wi thi n the City was also presented. The completion of a fiscal impact analysis of the Campbell Redevel- opment Project including the deter- mination of the magnitude of tax increment funds which may result from implementing the project. A related project identified feasible financi ng al ternatives for the acquisition of surplus school sites in conjunction with redevelopment. City of Turlock FEE POLICY AND COST RECOVERY SYSTEMS Sacramento County As a joint project with the CH2M Hill engineering firm, developed alterna- tive fee policies related to expan- sion of sewerage facilities to accom- modate deve 1 opi ng a reas of the County, inc 1 udi ng the North Natomas area. City of Oakland Working in conjunction with a Citizens Task Force and City staff, development and implementation of a revised business license tax that grows with the economY and improves equity. "." ," 23 AGENCY City of Santa Paula City of Modesto City of Monterey City of Redwood City City of St. Helena '... " (~ NATURE OF PROJECT An analysis of the proposed Santa Paul a Communi ty Servi ces Buil di ng to identify potential uses, and project annual operati ng expenses in order to recommend appropriate fee sched- ules. The analysis also determined what porti on of the Center's expen- ses woul d need to be supported by the City's general fund revenues. An overall review of a joint refuse rate increase proposal, including a recommended rate structure enab 1 i ng the refuse companies to receive an appropriate return on their invest- ment, and a framework for determin- ing whether future rate adjustments are warranted. A detailed analysis of the Monterey Conference Center's rates, i ncl udi ng rental schedules and associated policies. A recommended revised rate structure was developed based upon an analysi s of usage, revenue needs, and policies of other compet- i ng conference center facil ities throughout the state. An ex ami na ti on of the cost and reve- nue implications of a proposed refuse transfer stati on to serve several cities. The study included identification of cost elements, recommendations for an appropriate rate structure, and development of an appropriate financial data reporting system. A review and analysis of the City's existing water rate structure and the impact of a new water treatment plant on costs in order to develop a revi sed water rate structure to include operation and mai ntenance costs of the new treatment plant. 24 ....v "'.,-,," ~ (~ FISCAL II-'PACT AND FINANCIAL FEASIBILITY NATURE OF PROJECT AGENCY Cities of Chico, Martinez, Menlo Park, Monterey, Pl acerville City of Lakewood, Colorado City of Newport Beach, California Sacramento County City of Arlington, Texas '......" Separate studies of the fiscal impact and financial feasibility of proposed annexati ons of area to be added to the City's jurisdiction. Development of a comprehensive fiscal impact analysi s systens for use by City staff in the assessment of the fi scal impact of all future develop- ment in the City. The system is specifically tailored for each city and includes methods and procedures for projecti ng expenditures and rev- enues, including a manual and forms for implementation of the system. An evaluation of the financial feasibility of proposed development of the 580 berth Freeport Marina complex by the County Parks Depart- ment. The study i nc 1 uded an assess- ment of the market support for 580 berths and related ma ri na servi ces, five restaurants, 54,000 square feet of retail commercial, and an R.V. campground. A ten year forecast was prepared of operati ng revenues/costs and debt service to evaluate the fi nanci al feasi bil ity of two operat- ing alternatives. An evaluation of the financial impl ications of expandi ng the City's ai rport to accommodate corporate jets. The evaluation included an assessment of the market for corpor- ate jets, the effect that accanmo- dati ng corporate jets could have on the City's ability to attract major industrial firms, and the resulting fi scal impact on the City and over- all economic impact on the community. 25 -.......... ~ . AGENCY City of Arlington, Texas City of Monterey Mono County Local Agency Formation Commission ","'.. City of Belmont SAVI Development Corporation -",,~..... (~ NATURE OF PROJECT Development of the Arlington Economic Impact Model (AEIM), a system that permits the City to assess the finan- cial impact of individual development proposal s as well as the impact of long-term, city-wide development plans and trends. The model evalu- ates the cost/revenue fi scal impact on the City as well as the economic impact on the community as a whole. A comprehensive fiscal ill1pact analy- sis of proposed development of an 8,200 acre area planned for residen- ti al commerci al and industrial uses wi th an esti mated popul ati on of 14,000 at bull d-out. An evaluation of the financial feasi- bility of the proposed incorporation of the Mammoth Lakes Community. The analysi s al so examined the fi scal impact of the proposed incorporati on on the County of Mono. A fiscal impact analysis of the pro- posed Island Park Development, a 67 acre mixed- used proj ec t i nc 1 udi ng office, commercial, hotel, and resi- dential construction. An analysis of the fiscal ill1pact of a 286 acre development for residen- tial, commercial, and industrial uses, f nc 1 udi ng an assessment of the revenue and expenditure impact on the Cities of Anaheim and Yorba Linda if the development were to be annexed to either city. 26 , ~ (~ AGENCY NATURE OF PROJECT Natomas Company An economi c ana lysi s of the 836 acre Natoma Station Development (later developed as "Gold River"). The stuqy identified the economic impacts of the project on both the private and publ ic sectors duri ng construc- ti on as well as the conti nui ng effects of the new construction and increased population in the area. The project includes both residential and commercial development, and is the largest residential subdivision ever approved by the County. An assessment of the fi scal impact on the City of Folsom and the Folsom- Cordova Unified School District of proposed development of the 765 acre "Lake Natoma" site. Cost and revenue implications of the development were projected and analyzed including 1,647 residential units, 60 acres of commercial, and 176 acres of indus- trial uses. Sacramento County ~"x..._ San Joaquin County An analysis of the fiscal impact of a proposed general plan amendment for development of the 6,600 acre Carnegie Project. Development would include industrial, commercial, and residential land uses. The analysis assessed the fi scal impact for fi ve phases of development over a 30 year peri od, and ex ami ned the impact on the County, the City of Tracy, two school districts, and a fire di strict. AGENCY FINANCIAL ANALYSES AND EVALUATIONS NATURE OF PROOECT California State Judicial Council /Admini strati ve Office of the Courts A two-year assignment to develop and implement a comprehensive system for determining the impact of legislation on the courts. The project included 27 , ".,..;' AGENCY City of Thousand Oaks County of Santa Cruz Associated Building Industry of Northern California Bank of America " (~ NATURE OF PROJECT development of a specific system for tracking legislation and assessing the impact of legisl ati on on court finances and administration. An exami na ti on of the fi nanci ng of library services provided to the City of Thousand Oaks by the County in order to determine whether the City subsidizes services provided in other areas of the County. The study al so provi ded an analysi s of the financial feasibility of the City directly providing its own libra~ service. An exami nati on of financi ng al terna- tives available to the County for constructi on of a proposed 1 aw enforcement complex, including the County Jail. The report included the legal framework, advantages, and disadvantages of each financing al ternati ve. An analysis of resources available to meet local road financing needs in California. The study included a case study analysi s of the gaps be- tween resources and requirements, a summary of current resources avail- able, and practical alternatives to solving road financing needs. An analysis of the impact of Propo- sition 13 on state and local govern- ment, and assistance in developing a program to provide i nformati on and assistance to local agencies in implementing Proposition 13 and deal i ng with management and organi- zational problems. 28 \" "-;.,i AGENCY Bullocks, Broadway, Carter Hawley Hale Store, May Company, Robinsons, and Sears Roebuck Company Department Stores California Builders Council California Debt Adviso~ Commission California Society of Municipal Finance Officers Contra Costa County .' (~ NATURE OF PROJECT In cooperation with the City of Los Angeles, conducted an analysis of a proposed restructuri ng of the Busi- ness License Tax in Los Angeles. The project included an assessment of the impact and equity of proposed changes in the tax and development of a suggested approach to improve the Business License Tax. A report on school finance which identified present sources of reve- nue and indicated types of discre- tionary funds available as well as outlining alternative funding sources for the acquisition of port- able classrooms. A comprehensive analysis of debt financing practices of cities and counties throughout the State of California and development of a tech- ni cal assi stance program for the Cal i fornia Debt Advi sory Commi ssion to utilize in assisting local govern- ments in their debt management. Since 1971, ongoing assistance has been provided to the Society in analyzing pending and adopted legis- 1 ation that affects government finance. In addition, Statewide training sessions have been conduc- ted each Spring and Fall to keep local government fi nance managers apprised of legislative changes affecting government finance. Assistance to the County in develop- ing alternatives for financing law enforcement services and County capital projects. The study included an examination of providing services and facilities on a joint or consol- idated basis. 29 " '''.,J (~ AGENCY NATURE OF PROJECT Stanislaus County City of Modesto City of Ceres An analysis of the cost of providing 1 aw enforcement at existi ng and al- ternative levels of service in Stan- islaus County and the Cities of Modesto and Ceres. City of Inglewood An analysis of the City Parks and Recreation Department to determine the cos t- effec ti veness of contrac ti ng with private parties for services vi s-a-vi s servi ces provi ded by Ci ty personnel. The preceding provide nlustrative examples of projects completed by the Financial Management Division of Ralph Andersen & Associates. We would be pleased to provide references for these or any other projects completed by the firm. The following pages present specific contacts which are suggested as references. A more complete list of cl ients is contained in the Appendix of this Proposa 1. -.,=..- 30 ,,~'" .... ,~. ~,,"" (~ The following provide references for a cross-section of projects which indicate the breadth of experience and skills that will be necessary to provide comprehensive consulting assistance relative to the analysis of the potential economic impacts of a prevailing wage requi rement. AGENCY City of Arlington, Texas City of Newport Beach Mono County League of California Cities - SECTION IV--REFERENCES NATURE OF PROJECT CONTACT Mr. William Studer Director of Manage- ment Servi ces (817) 275-3271 Preparation of the computer- ized Arlington Economic Impact Model for projecting City rev- enues and expenditures, as we 11 as economi c i ndi cators (employment, personal income, etc.) resulting from the City's long term development trends, as well as individual develop- ment proposals. Preparation of a fiscal impact Mr. James D. Hewicker analysi s system that is oper- Di rector of Pl anni ng ated by City staff and projects (714) 640-2261 City revenues and expenditures that will result from develop- ment and annexations. An examination of the econo- mic feasibility of forming a city from the Mammoth Lakes Community, including a proj ec ti on of cos t sand revenues and an assessment of the fi scal impact on the County of Mono should the area incorporate. Development of a revenue and expenditure forecasting man- ual that was published for distribution to all California cities. In connection with the project, we conducted a state- wide senrinar for local govern- ment officials on revenue and expenditure forecasting. 31 Ms. Nancy Tronaas Mono Co. Local Agency Formation Commission (619) 932-7911 or Ms. Marguerite Ivey Executive Officer Mono County Trans- portation Commission (619) 932-7911 Mr. Don Benninghoven Executive Director (916) 444-5790 , AGENCY NATURE OF PROJECT City of Rancho Palos Verdes Preparation of a 10 year long-term financial plan, including a forecast of revenues and expenditures and the development of recommended funding alternatives and strategies. California Debt A comprehensive statewide Advisory Commission studY of all debt financing used by cities and counties. Included was analysis of all debt issued over the past three years and projected uses of debt for the next three years. ',,,..,,';' Analysis and report on the Fiscal impact and financial feasibility of the proposed Carnegie New Town Development. The study included a series of revenue and expenditure fore- casts for financial implica- tions of this 6,600 acre area becoming a new city, annexing to the City of Tracy, or re- maining an unincorporated area. City of Chico Comprehensive assistance and overall coordination for adopti on of the re- development plan for the formation of the Central Chico Redevelopment Pro- ject Area. San Joaquin County State of California A comprehensive, statewide studY of redevelopment, including every redevelop- ment agency in California. ".,-' 32 (~ CONTACT Mr. Don Guluzzy City Manager (213) 377-0306 Ms. Melinda Luedtke Executive Secretary (916) 324-2585 Mr. Chet Davisson Di rector of Planni ng & Building Inspection (209) 944-3722 Mr. Fred Davis City Manager OR Mr. Tom Lando Planning Director (916) 895-4800 Ms. Teresa Molinari Executive Secretary California Debt Advisory Commission (916) 324-2585 - " -- SECTION Y--STAFF QUALIFICATIONS (~ A principal strength of Ralph Andersen & Associates is the firm's practice of assigning full-time staff to each project who are sea- soned and hi ghly qual ified experts. The consultant staff assi gned to any project are professional analysts with the ability to under- stand complex financial problems relative to public finance and economics. All project consultants of the Financial Management Division al so possess a high level of technical and practical exper- tise acquired as operational managers in government prior to joining the firm. This combination of analytical skill s and practical experience provides the consultants with the understanding necessary to develop solutions that are technically sound and workable. ~- The followi ng pages briefly summari ze the qual ifications of staff that would be available for assignment to this project. In addi- tion, other staff of the firm would be made available as appropriate to assure the timely completion of all tasks of the workplan, or provide any needed additional expertise in the areas of organization and management, personnel management, and executive recruitment. Mr. James Harrington who is Vice President and Manager of the firm's Financial Management Divi si on would serve as Project Manager and primary consultant. Mr. Jere Kersnar is a Senior Consultant with the firm and would assist Mr. Harrington as necessary in areas of research, analysis, and development of findings and conclusions. - 33 - - ,--_._----.__._-~--"..._- -- -------;------- ~ JIM HARRINGTON (~ Mr. Harrington is Vice-President and Manager of the Financial Man- agement Division and has managed and conducted major studies for cities, counties, special districts, and state government as well as private sector cl ients. Prior to joining the firm, Mr. Harrington gained considerable practical financial management and analytical experience while serving over 14 years in county and city government. '-' As a practicing manager, he has been responsible for the conduct of detailed studies involving organization and financing issues in county and city government. He has served in key financial manage- ment and analytical positions for Los Angel es County and Orange County, as well as Director of Admi ni strative Servi ces/Di rector of Finance for the City of Irvine. Mr. Harrington's experience includes budget development and analysis, revenue projecti on, and vari ous organization and management studies invol vi ng essentially all city and county servi ce areas. As Di rector of Admi ni strative Servi ces/ Director of Finance for the City of Irvine, he was directly respon- sible for developing the administrative and financial management systems for this new and rapidly growing City. Particularly related to this assignment is his experience in developing a computerized revenue and expenditure forecasting model for the City of Irvine. In addition to his practical experience in local government, Mr. Harrington has conducted a variety of organization and finance studies as a consultant, including: Long-range and short-term revenue and expenditure forecasts, financial analyses, and financing plans for public and private sector clients. - Organi zati on and management studies for improved efficiency and effecti veness for city, county, and state governments throughout the Western States. 34 - " -~., ' (~ .~.-"'"... Assessments of the fiscal/economic impact of all types of development proposals/plans, as well as the development of computerized fiscal/economic forecasting systems tailored specifically for each city or county to use on a continuing basis. Feasi bil ity studies rangi ng from speci fic programs or servi ces and market analyses, to assessments of the overall financi al feasibility of redevelopment, municipal incorporations and annexations. ,",,,,",,,,, Mr. Harrington's experience with the firm includes a number of sig- nificant financial analyses. For the City of Arlington Texas, he prepared the computerized Arl ington Economic Impact Model (AEIM) which provides revenue and expenditure forecasts for an analysis of the impacts of long-term development trends and plans on the City's financial condition, as well as a projection of economic impacts on the local community and region. He also prepared a revenue and expenditure projection system for the City of Newport Beach. -~. For the City of Rancho Palos Verdes, he prepared a long-range finan- cial plan that provided long-range revenue and expenditure forecasts, and an analysis of needs and financing methods for the City's devel- opment over a 20-year build-out of the general plan. For the City of Folsom, he prepared a cost/revenue projection and financing plan for infrastructure requirements for development of a 3,400 acre area of the City of Folsom. He prepared simil ar infrastructure financi ng plans for the Counties of San Joaquin, San Diego, and Contra Costa, as well as a number of private developers. Mr. Harrington al so prepared a comprehensive analysis of transportation needs in the County of Mono which included a multi-year forecast of revenues and expenditures to identify funding deficiencies, and the development of recommended financing alternatives for identified needs. 35 \, - / (~ .....-. He assi sted the City of San Jose in identi fying feasible tax exempt financing methods for the relocation of Marine World - Africa U.S.A. to the City of San Jose; and for Sacramento County he evaluated the market support for and financial feasibility of the 580 berth Freeport Marina, including on-shore restaurant and retail development. For the California Debt Advisory Commission, he conducted a study of the purposes and types of debt financing util- ized by cities and counties throughout the State of Cal ifornia and developed a recommended technical assi stance program for the Commission to utilize in meeting the needs of local government. "-' In addition, Mr. Harrington has conducted analyses of the financial feasibility of incorporation of the Mammoth Lakes, and Mission Viejo communities; and has conducted numerous fiscal impact analyses of large and small development proposals, including, among others, projects for the Counties of Monterey, Sacramento, San Joaquin, and Yolo, and the Cities of Anaheim, Belmont, Galt, Los Banos, Monterey, and Yorba Linda. All of these assignments have required a detailed understanding of all types of development and forecasts of fi scal /economi c impact. Mr. Harri ngton al so authored a Revenue and Expenditure Forecasti ng Guidebook for the League of Cal ifornia Cities, which was publ ished for distribution to all California cities. He is a frequent speaker on topics related to publiC finance and economics, and taught a course on public finance at the University of California at Irvine's Graduate School of Administration. Mr. Harrington received his Bachelor's Degree (cum laude) in Economics from the California State University, Long Beach, and his graduate work was in Public Administration at the California State University, Fullerton. -. 36 ,. . ,,,..~ JERE ICERSNAR (~ '-' Mr. Kersnar is a Senior Consultant with the Firm and specializes in consulting assignments in the areas of public finance, economics, organi zati on and management. Pri or to joi ni ng Ralph Andersen & Associates, Mr. Kersnar gained considerable practical experience in analytical and management positions in local government. Mr. Kersnar's local government experience includes both line manage- ment and staff analytical positions. He served as Assistant City Manager for the City of Lakewood, Colorado, where he participated in the development of a fiscal impact model for the City. As Assistant Director of Community Development, he was responsible for the plan- ning and economic development activities of this rapidly growing COlllDunity. In addition, Mr. Kersnar served as Housing Authority Executive Director and Housing Manager, and Assistant to the City Admini strator. -- Mr. Kersnar is assigned to major consulting assignnents involving: analysis and projection of local government revenues and expendi- tures; analysis of financial feasibility; assessment of fiscal impact of development, redevelopment and annexations; and studies to improve the organi zati on and del i very of publi c servi ces and facil iti es. Recent projects include a fiscal and financial feasibility analysis, including development of a financial plan, for the proposed develop- ment of approximately 22 square miles in Sacramento, and development of a fiscal and economic impact analysis model for the. City of Arlington, Texas. Mr. Kersnar received his Bachelor's Degree in Economics and Political Science, with an emphasis on public finance, from the University of Oregon. City management was the focus of his studies for his Master of Public Administration degree from the University of Kansas. - 37 - . .......... - y SECTION YI--PROJECT TIMING AND COST (~ Ralph Andersen & Associates is prepared to begin work immediately. As indicated in Section II of this Proposal, the first task of our work plan will be to finalize a timetable with specific milestones for completion of all tasks of the workplan. We will work expe- ditiously to assure accomplishment of all phases of work within the agreed-upon timetabl e. In general, we would expect to be able to complete all work within eight weeks of receiving your authorization to proceed. ""-- The total cost for all professional services would be $11,200. The only cost in addition to this amount for which the Redevelopment Agency of the City of San Bernardino would be responsible, would be reimbursement for out-of-pocket expenses incurred by Ral ph Andersen & Associates for such items as travel, long-distance telephone, data processing, clerical, printing, and postage. Payment would be on a monthly basis upon receipt of an invoice from Ralph Andersen & Associ ates. Our cost estimate has been carefully prepared and is related to the proposed work plan contained in Section II of this Proposal. The work plan is comprehensive and will effectively meet your objectives for this assignment. However, if we have overlooked anything, or if the work plan or budget creates practical problems in any way, we are prepared to review both the work plan and budget and modify them as appropriate. -- 38 - . ","",/ . / . (~ APPENDIX--lIST OF CLIENTS --- 39 . r (1=\ RaJ.ph Andersen & Associates . -' Clients '- City of Aiamedo Alameoa County Training and Employment Board! Associated Community Action Program Ala~-Contra Costa Transit District City of Anaheim Aaociated BuUding Industry Auditor General'. Dffice--State of California City of Bakersfield City of Baldwin Park Bank of America City of Barstow Bay Area Air QualIty Manage..-t District City of Bellevue (Washington) City of Belmont City of BenlcIa City of Beverly Hills Bode:g8 Harbour I tomeowner'l A..x:iat1on Bullock1 City of Burbank CH:zM Hill CalIfornia Bullden CoI.r1cU CalIfornia CouncU of ClvU E~ Callfomla Journal California MunlcIpaI UUUtles AaocIatlon California Park and Recreation SocIety CalIfornia _ California Roundtable California SChool Boards Aaoclatlon CaUfornla Society of Municipal Finance OffIcers CalIfornia State Legi.lature (Senate one! _y) City of CamarUlo City of CampbeU City of Carilbad City of C... Grande (Arizona) City of Chandler (Arizona) City of Chico City of Chino City of Claremont City of CIovi. City of Colusa Colusa County Commission on Peace Officer Standards one! Tralnlng-- State of CalIfornia Conejo Park one! Racreatlon District Contra Costa County Contra Costa County Water DIstrict City of Coronado City of Costa Mesa City of Covlna county SupervilO1'S AlSOClation of CalIfornia Crocker Lone! Company City of Davi. Department of Finance--State of California City of Downey East Bay Dischargers Authority East Bay Regional Park District .........." -.--;;-- - East Yolo Community Services District City of EI Cerrito EI Dorado county City of EI Monte City of EI Segundo Erlac- Lu~ Company City of Escondido City of Eugene (Oregon) City of Eureka City of Fairfield City of Foster City City of Fremont Fresno County Fresno City one! County Housing Authority City of Galt City of Gilbert (Arizona) Glendale UnIfied School District City of Gras Valley City of Hayward City of Hemet incline VUIage General Improvement District (Nevada) City of lng1ewood Imperial County City of irvine J ones one! Stokes, Inc. Judicial councU--State of CaUfornia Justice one! Associates City of KenaI (Alaska) City of KIng City City of Lafayette Lake county City of LoIce Elsinore Loke Tahoe UnIfied School District City of Lancaster City of La Puente City of Lawndale League of California Cities League of Oregon CIties Leisure World--Laguna Hills UncoIn Property Company City of Llvwmore Uvwmore--Arnador Valley Water Management Agency City of Lorna UncIa City of Loa Cato. Loa Medanos Community Hospital DiBtrlct Lucky Stores City of Lynwood City of Madera Madera County City of MartInez City of MarysvUle May Company McDonnell Douglu City of Menlo Park Menlo Park SanItary District Mission Viejo Company '-' '-" , City of_ Mono County City of Monrovia City of Monte Sereno City of MontJJbe1lo MontJJbe1lo _veIopment Agency City of Monterey Monterey Conference Center Monterey County Housing Authority City of Monterey Pmk MLltnomll1 County eor-) MunIcipa1 Finance Officers A_ National L_ of CltieJ National Fire Pre.....tIon one! Conll'ol AdmlnIItratlon Natomu Comp8ny George S. Nolte one! I'aod.t... City of Norco Northern CalIfornia Power Agency City of Oakland Oaldone! Port Authority City of ~ City of 0>cn8rd City of Pacific Grove City of Pacifica City of Palm ee-t City of Palo Alto City of_ _ -.eIopmentAgency Pebble _ CorporatIon CIty of PhoonIx (Arizona) City of Piedmont City of P1tuburg P1tuburg UnIfied sa-! 0IItrIct Placer County City of PlocervWe Plamed Puenthood of Soerament.o City of PI_ City of __ City of Portland (~) City of RIncho MIrage City of RIncho PlIIos V_ City of Red Bluff City of Redondo _ City of Redwood City ReImer one! Aaociateo City of RIchmond City of R1Vtll'1ide City of _vWe The Runyon Agency City of Soerament.o s.cranwrto Clwter Cornmllllon Soc:ramento County Sacramento Housing one! Redevelopment Agency s.cranwrto Municipal UWIty Olotrlct Sacramento RegIonal Area Planning Commlalon s.cranwrto. VoiD Employment one! Training Ageney City of San Carlot City of San Clemente San Olego Regional Employment Training ConoortIum City one! County of San FrancIoco City of San Jacinto City of San Jooe San J _ Community Col. Olstrlct City of San Lull ~ City of San Mateo San Mateo County "',,,~..' "",-' , ..>~' - '--" City of San Pablo City of San Rafael Santa Ana Valley irrigation Company Santa II8rbara County City of Santa Clara Santa Clara Valley Water Oiltrict City of Santa Cruz Santa Cruz County Santa Fe SprIngs Redevelopment Agency City of Santa Paula City of Santa Rosa Santa Rosa Redevelopment Agency City of Saratoga City of Sausallto SIskiyou County City of Snohomilh (Washington) Solano County City of South EI Monte City of South Gate City of South Lake Tahoe City of South San Francisco Southern California Executive Olrectorl AlIllCiatlon Southern California Aaoclatlon of Governments 5pademan ~ Systems City of 5parl<1 (Nevada) SpecIal Olltrict Aaociatlon of CalIfornia The Splnlc Corporation City of Springfield (~) City of St. He1ena Stanilla... County Stone one! Youngberg City of Sunnyvale sutter County _water Authority City of Tacoma (Washington) City of Thousand 0aklI City of Tracy City of Turlock Turlock irrigation Oiltrict City of Tustin City of UIclah City of Union City UnIted Way of CalIfornia Unlvenlty of Callfornia--Berkeler, Cavia Unlvenlty of Southern CalIfornia City of VlCtlvUle City of VaU.jo City of Ventura City of VUIa Pmk Vilalla UnIfied sa-! Oiltrict City of Vlata Wainwright one! Ramsey Waldorf sa-! City of Walla Walla (Washington) Washington County (Ol'egon) Washlngton State Flnonce Officers Aaociation WlIIt Contra Costa SanItation Oiltrict WhItaker one! Baxter City of WhIttier City of WInten City of Woodland Yolo County VOiD County Housing Authority Yolo County PubUc Agency RIsk Management Authority City of Yuba City Yuba County ., PAIGE ELECTRIC COMPANY ELECTRICAL CONTRACTORS Est 1926 CA ST lie, NO 21025~i 380 West Athol St. P.O. Box 659 San Bernardino, Calif, 92402 Phone (714)884.8268 . . . February 17, 1986 CITY COUNCIL CITY OF SAN BERNARDINO 300 North "D" Street San Bernardino, Ca. 92418 RE: Prevailing Wages Dear City Council Members: On February 8, 1986, I had the opportunity to listen to Mr. Robert Simpson, Labor Commissioner for the State of California. Mr. Simpson told us of his r'esponsibilities to see that the State of Califor'nia Prevailing Wage Laws wer'e enforced. He specifically stated that many Public Agencies were in deed trying to circumvent these laws. He particularly mentioned School Districts throughout the State. He also told us of third party arrangements between Cities, Counties, Re- development Agencies and Assessment Districts to get around the Public Works requirements and the Prevailing Wages that must be paid on such Public Works. He emphasized that Public Works are Public Works and all the arrange- ments, lease backs, etc does not change that. Mr. Simpson spoke at some length about the undergr'ound economy. About the unscrupulous businesses and wor'kers who wer'e dealing strictly in cash payments; who paid no social secur'ity taxes; who paid no income taxes; who paid no workers compensation; who paid wages below prevail- ing rates. He also told us his office was receiving the cooperation of the State Franchise Tax Boar'd, the Social Security Administration, the IRS, the FBI and any other public agency whose duty and responsibi- lity it is to collect taxes. Mr. Simpson said there are far too many Public Works projects being perfor'med today where the Prevailing Wages are not being paid. He emphasized that the law stipulates that it is the City Attorney's responsibility to see that on all City Pr'ojects, including Redevelopment Agency Projects, that are advertised for' bids must also publish the Prevailing Wages for such projects. Mr. Simpson told us that if these Prevailing Wages were not published, were not in agreement with the latest rates published by the Dir'ector of Industrial Relations pursuant to California Labor Code, we should notify his of- fice. Upon such notification, it becomes the Director's responsibility to contact the City or other agency and require such agency to postpone the bid date by at least twenty days. Mr. Simpson stated it is the Cities Of' ot.her' Pulllic Agency's responsibility t.o see that the Pr'evai]- ing Wages are paid. It is my opinion, that if the City Council has in mind to award con- tracts where less than the prevailing wages are permitted to be paid, /!s~ I -e. (/ , LETTER TO: CIT~UNCIL OF SAN B~RDINO February 17, 1986 Page 2 . the Council is making a mistake and is in violation of the law. Such action would lessen the City's and the State's capability to police the payments to workers. It would, in my opinion, weaken existing laws and encourage further, the underground economy. As an owner and representative of Paige Electric Company, a business in the City since 1926, and as a citizen of this City since 1952, I urge you not to enter into any agreements nor to take any action that will flaunt the laws of our State. Sincerely, ~ '1 / ( /td~G.1I-ha.l~ J'~es E. Henehan, President PAIGE ELECTRIC COMPANY JEH: pjm . . . COMPANY PLU"/? 1501 SEVENTH STREET, SUITE E RIVERSIDE, CALIFORNIA 92507 E . PHOhT:: 683-87":4 . RIVERSIDE, CALlFOR~~IA 9:::'-;' January 30, 1986 Mayor and Common Council Ci ty of San Bernardino 300 N. D Street San Bernardino, CA Dear Sirs: I am writing to express my concern over the proposed elimination of the prevailing wage requirement for work in connection with the Cities redevelopment projects. While the short term savings resulting from the abandonment of long standing requirements of decent wages for city projects may look appealing, the long term effects should be considered. They include project delays, lowered quality of finished products, loss of business for local contractors and a lowered standard of living for the average citizen. Two old adages seem pertinent to this discussion; "You can't get something for nothing" and "You get what you pay for". Trying to get construction on the cheap will catch up with the city in the long run. Sincerely, c~ ~ ;: Chris Taber President CT: ew (25---( C' \ !JJanjen 111ech an i! t 3n c. . 180 E, Central Avenue San Bernardino, California 92408 714/889-9507 . P!lI1nhin;.;: c- H ('ating H Palm Springs, California 92262 619/345-5344 Contractors Ko, 274616 January 30, 1986 Mayor and Common Council City Hall 300 North "D" Street San Bernardino, Calif. 92401 Dear Madam and Gentlemen: We wish to voice our strong objection to your pending decision to do away with the prevailing wage rate for all development work in the City of San Bernardino. In the 45 years our company has been in business, we have always felt that for the benefit of our customers, and to ourselves, that competent workmen were essential and as such deserves a proper wage. The workmen we hire start as apprentices, work for five years until they become journeymen. During these five years of training they are taught, besides the mechanics of the trade, that they will also become responsible for the health and safety of the ones that they are working for. These five years of training are comparable to a college education in the field they have chosen. This investment of time and the responsibility to the public that it entails is certainly worth a fair compensation. Your decision to do away with prevailing wage can only result in the hiring of incompetent workmen, a lowering of the standard of quality of the work performed, a danger to the health of the public and a possible threat to the safety of us all. We ask you to reconsider your decision on this matter. At least until you have weighed all the facts and accessed all the reper- cussions. After all you also have a responsibility to the public. Sincerely, HANSEN MECHANICAL, INC. By' R. W. Russell, President RWR/pmm ;2 5-- / .,,,w':-. ,~,,(,;;...;.~,~' ,:'"...~ . . . . January 30, 1986 Dear Sirs; City of San Bernardino Mayor San Bernardino, California . ' . ,',,:, ':'i,:, ,',' .':' It has come to our attention that.consideration is being given to deleting the prevailing wage rate as relates to City Redevelopment Projects. As a local cori~ractor, I must express my concern for this considered action. Some of these concerns include the following: 1. The prevailing wage rate provides a base where all con- tractors may bid fairly and competitively against others, particularly those who are from outside the local area. 2. Without this equalizer, cut rate contractors and workers often come into the area, thus depriving local employment and then move on without concern for the local community. 3. It is our opinion that removal of prevailing wage rates often results in a sub-standard building, while the prevail- ing wage rates assures that the municipality and the tax payer can demand quality workmanship. 4. Many cities and states who have abandoned the prevailing wage rate have experienced a deterioration in life style for local wage earners (i.e. tax payer). 5. Local employees who earn a fair wage invariably spend it in their communities, which in turn supports continued local growth. While there are other reasons for our concern regarding this matter, we strongly urge that you set aside this consideration rapidly, thereby continuing to adequately represent your constituents. Sincerely, ./II "...-~ ,<, ,J, ~---!.. ' ..._~_~ / __ . _.,__.....t . W. A. Gemeinhardt President, GEMS.MECHANICAL CORPORATION WAG/cmg , ~~ ""~,. ~,#~~':,~-~ G;t ,,'. ff{"i)""'. n' l't,,;;'~ >:~;.. It ,~\~) ,...Jl....'" I t t,