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OF SAN BERNARDINO
IN'1'EROFFICE MEMORANDUM tfj ~~"
8602-612 In
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TOr RDA Commissioners
FROM: Raymond D. Schweitzer, Deputy City Administrator
SUBJECTr Prevailing Wages
DATEr
February 10, 1986
(6616)
COPIES:
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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.
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INTEROFFICE MEMORANDUM: 8602-612
Prevailing Wages
February 10, 1986
. Page 2
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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)
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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
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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
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IIAINftNANOI AND __IIANIlM 01 ~IIII'ICA'IIONI
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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
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, IIAINTINANCI MICHANIC
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; Currotlt Ilat.. . A1llndu...... I' ,,. .'OJ2 .,o.a2 '10." - '1.17
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, Mlnufoctu.1nl 17 '07 ,OJO 10.12 '0.11 - '1.10
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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
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e~l-r COMMUNITY WAGE RATE 'UIWEY~D 'MPI~ - ,..0 4
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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
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COMMUNITY WAGE RATE SUR~NLAND EMPIRE - 1885
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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
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.. CeuUon . ....r 40 percent of employee. ..ported by one CO"'Plny
. ......6cie..t... COMMUNITY WAGE RATE SURVEY - ~ EM~IRE, - 1880
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..... '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
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COMMUNITY WAGE RATE SUR~NLAND EMPIRE - 'V
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, ItA1I Of CAUfOINA
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0t0lI0I 1t_N. _
..AlltMINI Of __I .1A1ION5
DIVISION OF LAlOR STATISTICS AND RESEARCH
.S GOLDIN GA1I AVlNIll
IAN .....NCISCO
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It.t'O.-lOM'''' Off.
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ADDllSS 8l'11 TO.
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IAN '8ANCGCO. CA NIOI
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(415) 557-0561
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AugU8t 22, 1985
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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.
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-, .... .... ... ,.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. ~
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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..
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--
-,.........~--
-..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
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IN.nd utJlily WQftjng truek
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ec:ompoalteCIWWiI~"rry
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highlny combinauon of wht-
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11.00 per hcMIr ..:IditiDMll
Except; Driver of esumptFUCt: of;
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Tifle CIty R,,,':n s.o.!.
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'-
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
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'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
-
"-\."..-
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REDEVELOPMENT AGENCY
"'".""". PREVAILING HAGE SURVEY
A. Do you Include a prevall~ng wage requl~ement clause when:
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Yes No
1. You contract for public Improvements? r./fIt..
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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?
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Name
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Deloitte
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Management Advisory Services
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PROPOSAL TO ~~ faElJR'fb \
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THE CITY OF \ <~~,_ .!
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REDEVELOPMENT AGENCY
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TO' STUDY THE IMPACT
'OF' THE' PREVAILING
WAGE CLAUSE ON
NON-PUBLIC WORKS
CONTRACTS
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FEBRUARY, 1986
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Deloitte\..-
Haskins+Sells
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Suite 1 900
701 "B" Street
San Diego. California 92101.8198
(619) 232-6500
TWX 910-335-1573
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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
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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.
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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,
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Frank Panarisi.
Project Manager
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TABLE OF CONTENTS
Pal?;e
I. Our Understanding of the Study 1
ll. General Firm Qualifications 3
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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
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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
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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
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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.
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Identifying the impact (i.e., cost, benefits, activity
impact) of using "prevailing wage" clauses in all contracts
on the Agency and the community
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It is our understsnding that the deliverables from our study
will include:
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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
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II. GENERAL FIRM QUALIFICATIONS
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~~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.
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MANAGEMENT ADVISORY SERVICES
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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.
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GOVERNMENT SERVICE GROUP
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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.
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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.
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EXHIBIT 1
DELOITTE HASKINS & SELLS
PACIFIC REGION
PUBLIC SECTOR ENGAGMENTS
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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
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EXHIBIT 1 (Cont'd)
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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
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III. RELATED EXPERIENCE
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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
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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
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The City of Industry Redevelopment Agency
The City of Alhambra Redevelopment Agency
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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
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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:
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Organization and structure
Information system and data base
Conformance with JTPA objectives
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Linkages with business, service providers, other PICs
and the public
profram administration
Emp oyment training services
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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
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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
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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)
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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
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IV. PROJECT APPROACH
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A. Work Plan
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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.
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TASK/SUBTASK DETAIL
TASK 1.0 - PROJECT INITIATION AND MANAGEMENT
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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.
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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.
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TASK 4.0 - WAGE/SALARY COMPARISON ANALYSIS
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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
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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.
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TASK 8.0 - PREPARE FINAL REPORT
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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.
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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
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2.0 ANALYSIS OF CONTRACTS
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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
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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
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SURVEY DATA COLLECTION
5.2
5.3
5.4
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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
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6.0 ,REVIEW OTHER ORGANIZATIONS
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7.0
8.0
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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
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v. PROJECT ORGANIZATION AND STAFFING
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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.
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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.
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PROJECT TEAM ORGANIZATION CHART
SAN BERNARDINO
REDEVELOPMENT AGENCY
I -
PROJECT PARTNER TECHNICAL ADVISOR
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Mr. Frank Panarisi Mr. Robert Reicher
T
PROJECT MANAGER
Ms. Joan Martin
CONSULTANT
CONSULTANT
Mr. Scott Miller
Mr. Mike Ford
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VI. RESUMES OF PROPOSED STAFF
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Role in
Engagement:
Experience:
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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
. .
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President of County Health Care
Administrator's Association of California
.
Assistant Chief Probation Officer for Los
Angeles County
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FRANK PANARISI
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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
.
.
.
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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
.
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Role in
Engagement:
Experience:
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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.
.
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A 120,000 square foot commercial office
project in the Redevelopment Project Area of
Santa Ana.
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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.
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. A residential and recreational community of
nearly 400 housing units in Santa Ana
Canyon, to serve the value-oriented Orange
County buyer.
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Served:
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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.
.
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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.
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Professional
Activities:
Education:
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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
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Role in
Engagement:
Experience:
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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.
.
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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.
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JOANK. MARTIN
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Activities:
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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
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Experience:
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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
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MICHAEL R. FORD
Education:
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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
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EnRaRement:
Experience:
Examples of
Clients Served:
Professional
Activities:
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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.
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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
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VI I. PROJECT COST SUMMARY
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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.
~
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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
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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--___"'~._~...,__~~~____~_.._'.','_,__~___,_,__ . ...__..~____.
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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.
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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
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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.
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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.
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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
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TABLE IF CONTENTS
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SECTION I--OUR UNDERSTANDING OF THE ASSIGNMENT
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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.
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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
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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.
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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.
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SECTION II--OUR APPROACH TO THE ASSIGNMENT
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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.
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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
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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
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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
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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.
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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
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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.
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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.
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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.
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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.
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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
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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
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such a requirement, and this sub-task will provide specific
illustrative examples using the case study development
projects.
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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.
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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.
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SECTION III--CORPORATE QUALIFICATIONS
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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,
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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
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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
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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
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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.
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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
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Contra Costa County
City of Davis
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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.
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AGENCY
San Joaquin County
City of Redondo Beach
Mono County
City of Rancho Palos Verdes
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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.
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AGENCY
City of Folsom
City of San Jose
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Pl acer County
County of San Diego
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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.
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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~.<'
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21
,,"
AGENCY
City of Dixon
City of Pasadena
City of Porterville
Southern California
Executive Directors
Association
.-
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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
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--
'..-'
'-
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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
"'.,-,,"
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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
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AGENCY
City of Arlington, Texas
City of Monterey
Mono County Local Agency
Formation Commission
","'..
City of Belmont
SAVI Development Corporation
-",,~.....
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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
"
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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
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"-;.,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
.'
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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
"
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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
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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
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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
- - ,--_._----.__._-~--"..._-
--
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~
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
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"
-~., '
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.~.-"'"...
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
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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.
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37
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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
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. /
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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 _
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.,
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
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