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HomeMy WebLinkAbout2010 Charter Review Commission - Agendas - Historical Refere AGENDA Tuesday., March 25, 2010, 6:00 PM City Hall, B-8 I. Roll Call: Jerry Bame, Ralph Bauer, Mark Bixby, Patrick Brenden, Shirley Dettloff, Dick Harlow, Gregory Hartnett, Marijo Johnson, Gary Kutscher, Joe Shaw, Ray Silver, Shane Sneddon, Tim Stuart, Dave Sullivan, Shane Whiteside II. Public Comments: _ An opportunity for the public to comment on any item of interest, either in general or specific to this agenda, that is within the subject matter or jurisdiction of the Commission. Comments will be limited to no more than 3 minutes. Speakers are encouraged to submit their comments in writing. Each Commission Member will receive a coin of all the submitted comments. III. Approval of the Commission minutes from the March 16 meeting. IV. Final Review of the Proposed Revised City Charter and Potential Language Changes, Correction, or other Modifications including: • 500(c) Publication of Ordinance Y 612 - Public Utilities & Parks and Beaches • 617 — Infrastructure Fund V. Discussion and action on a preamble to the City Charter _ VI. Final Vote on the Charter Revisions as a whole. VII. Commissioner's Comments Vill. Adjournment: No future meetings are scheduled. The Commission Chair and Vice Chair will present the Proposed Revised City Charter to the City Council at 4 PM on April 19. Commission Members are encouraged to attend. Attachments: * 1. Minutes from the March 16 Commission Meeting 2. Legislative Draft of the Proposed Charter Revisions 3. The Proposed Revised City-Charter 4. Preamble Suggestions from the Commissioners * Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. !rr lull'��el,-,-:,-: rim - ACTION MINUTES Tuesday., March 16, 2010, 6:00 PM City Hall, B-8 1. Roll Call: Jerry Bame, Ralph Bauer, Mark Bixby, Patrick Brenden, Shirley Dettloff, Dick Harlow, Gregory Hartnett, Marijo Johnson, Gary Kutscher, Joe Shaw,.Ray Silver, Shane Sneddon, Tim Stuart, Dave Sullivan, Shane Whiteside All present. II. Public Comments: An opportunity for the public to comment on any item of interest, either in general or specific to this agenda, that is within the subject matter or jurisdiction of the Commission. Comments will be limited to no more than 3 minutes. Speakers are encouraged to submit their comments in writing Each Commission Member will receive a copy of all the-.submitted comments. Ill. Approval of the Commission minutes from the March 2 meeting. Motion by Dettloff, second by Shaw to approve the March 2 minutes with as amended to correct action taken on Charter Section 617(b). IV. Review and Amend Section 311: City Treasurer Powers and [duties Following some discussion, a motion was made by Commissioner Bauer, seconded by Commissioner Sneddon to approve the qualifications for the City Treasurer as follows: To become and remain eligible for City Treasurer, the person elected or appointed shall have a minimum of five (5)years of financial and treasury experience with three (3)years of management experience and either a Master's.degree in accounting, finance, business, or public administration; or a Bachelor's degree in accounting, finance, business, or public administration and Certification by the California Municipal Treasurer's Association or their successor within three (3)years of election or appointment. A substitute motion was made by Commissioner Bame, seconded by Commissioner Whiteside to approve the above language without the requirement for certification by the California Municipal Treasurer's Association. The motion failed 3-12 (Bame, Stuart, & Whiteside Ayes) The original motion was approved 14-1 (Brenden No) following a discussion about the management responsibilities of all three elected department heads, Commissioner Dettloff made a motion, seconded by Commissioner Bauer to add Charter Section 309 three,(3)years of management experience as a qualification "to become and remain eligible for City Attorney." The motion carried 11-4 (Bame, Silver, Shaw, & Brenden No) Commission Dettloff made a motion, seconded by Commissioner Sneddon to add to Charter Section 310 three (3)years of management experience as a qualification "to become and remain eligible for City Clerk." The motion carried 12-3 (Bame, Brenden, Silver No) V. Continue Review of Proposed City Charter Amendments * Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. Charter Review Commission March 16, 2010 2 City Staff noted that Police Chief Small expressed a concern that the draft language in Charter Section 312 (c) Forfeiture was too broad. A motion was made by Commissioner Hartnett, seconded by Commissioner Sullivan to amend the language to read: If a member of the City Council is absent from all regular meetings of the City Council for a period of thirty consecutive days from and after the last regular City Council meeting attended by such member, unless by permission of the City Council expressed in its official minutes, the office shall become vacant. If an elected City officer pleads guilty or no contest to or is convicted of a felony or any crime involving moral turpitude or ceases to be an elector of the City, the office shall become vacant. The City Council shall declare the existence of such vacancy. Any elective officer of the City who shall accept or retain any other elective public office, except as provided in this Charter, shall be deemed thereby to have vacated the office under the City Government. The motion carried 13-2(Bame, Brenden No) No changes were made in draft Charter Section 313 thru 401(a-i) Under draft Charter Section 401,a motion was made by Commissioner Shaw, seconded by Commissioner Sneddon to delete Section 401(j)and move it to:draft Charter Section 403 of the Charter. A follow up motion was made by Commissioner Bixby, seconded by Commissioner Brenden to amend draft Sections 3090}, 3100), & 311(f)to read: "Assist and cooperate with the city manager consistent with Section 403 of the Charter[as amended above]. No changes were made in draft Charter Section 404 or 405. Under draft Charter Section 500 a motion was made by Commissioner Sneddon, seconded by Commissioner Bixby to change the wording under 500(c) by ending the first sentence after the word "purpose," and beginning a new sentence to read: "Current technology should be used to ensure the widest possible dissemination." The motion was approved 15-0. Under draft Charter Section 503 on motion by Commissioner Sneddon and second by Commissioner Dettloff, the word "via"was changed to the word "using." The motion carried 15-0 No changes were made to draft Charter Sections 600 through 611. Under draft Charter Section 612(b), Commissioner Bixby made a motion, seconded by Commissioner Shaw to add the word "cost" in the second to last sentence before the words "conceptual estimate_" The motion carried 14-1. (Silver abstained) Under draft Charter Section 612(c)(4) Commissioner Bixby made a motion seconded by Commissioner Shaw to change the wording to read: "to public works underground utility structure if park or beach use is not impeded." The motion carried 15-0. Under draft Charter Section 612(c)(5) Commisition Bixby made a motion, seconded by Commissioner Sullivan to change the wording to read: to any public works construction, Charter Review Commission, March 16,2010 3 maintenance, or repair mandated by state or federal law that does not negatively impact recreational opportunities, or" The motion carried 13-2 (Stuart, Kutscher No) Under draft Charter Section 612(c)(6) Commissioner Dettloff made a motion, seconded by Commissioner Sneddon to change the wording to read: "to renewable energy projects that do not negatively impact recreational opportunities." The motioned carried 13-1-1 (Shaw No, Silver abstained.) Under draft Charter Section 614 the words "by ordinance" should follow"amount set." No changes were made on draft Charter Section 615 and 616. Under draft Charter Section 617(b)a motion was made by Commissioner Shaw and seconded by Commissioner Stuart to accept the additional language in the first paragraph of 617(b)and the additional 2"d paragraph without the additional third paragraph. A substitute motion was made by Commissioner Brenden, seconded by Commissioner Sneddon to accept only the additional language in the first paragraph of draft Charter Section 617(b)without the accepting the addition of the new second and third paragraphs of draft Charter Section 617(b). The substitute motion carried 11-4(Sullivan, Kutscher, Stuart, Silver No) Under draft Charter Section 617(c)Commissioner Brenden made a motion, seconded by Commissioner Whiteside to amend the language to read: The City Council shall by ordinance establish a Citizens Infrastructure Advisory Board with the sole responsibility to conduct an annual review and performance audit of the Infrastructure Fund and infrastructure expenditures and present a report of its finding to the City Council at a noticed public hearing prior to the adoption of the following fiscal-year budget. The motion carried15-0. No changes were made to draft Charter Section 700-803 Under the new draft Charter Section 804, Commissioner Brenden made a motion, seconded by Commissioner Dettloff to amend the wording to read as follows: The City Council shall convene a citizens Charter Review Commission to review the City Charter no less frequently than every ten years. The motion carried 15-0. Commissioner Dettloff asked the Commission to consider adding a new duty under the City Attorney in draft Charter Section 310 to read as follows: Provide advice related to compliance with the City Charter to all elected and appointed officials of the city. A motion was made by Commissioner Brenden, seconded by Commissioner Dettloff, to add this duty to the City Attorney's powers and duties. The motion carried 15-0_ VI. Discuss and take action on the wording for a preamble to the City Charter- Sonenshein No action was taken. Commissioners are to submit their recommendations for a preamble. Vll. Discuss and take action on Non-Charter Recommendations to the City Council. Charter Review Commission March 16,2010 4 A motion was made by Commissioner Silver, seconded by Commissioner Sullivan to forward the following non-charter recommendations to the city Council related to Charter Section 612 (Measure C): There be a process to verify the cost of improvements covered under Measure C by: ® the Public Works Dept. retaining an as-needed professional estimating consultant ® Requiring project applicants to submit their construction cost estimates to Public Works for review and pay an associated fee ® The city developing a procedure for an independent cost estimate to determine if a public or private project would require a Measure C vote • The city developing a process for notifying the public whenever there is a city-owned or city- operated park or beach development project with a cost of over$10,000 and less than $161,000(not requiring a Measure C vote). ® Utilizing a notification process similar to that currently used by the Community Services and Planning Departments (mail public notice to property owners w/in 300' of site and public notice in newspaper. Vlll. Commissioner's Requests: Questions, comments. or suggestions for discussion at a subsequent meeting of the Commission 1X. Adjournment: Commission to determine whether to schedule an additional meeting date_ The Commission adjourned to 6 PM on March 25, location to be determined. Attachments: 1. Minutes from the March 2 Commission Meeting 2. Earlier Memos from the City Treasurer and City Clerk regarding qualifications for their office. 3. Updated Legislative Draft of Proposed;Charter Amendments 4. Examples of other city's charter preambles 5. List of Non-Charter Recommendation to the City Council 6. Memo from Joan Flynn, City Clerk, regarding the calendar and cost for the November ballot AT Ti4CFIMENT #2 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS c*.._k, ' Proposed Charter Language - March 17, 2010 ARTICLE I INCORPORATION AND POWERS OF THE CITY Section 100. NAME. The municipal corporation now existing and known as the City of Huntington Beach shall remain and continue to exist as a municipal corporation under its present name of"City of Huntington Beach." Section 101. SEAL. The City shall have an official seal which may be changed from time to time by ordinance. The present official seal shall continue to be the official seal of the City until changed in the manner stated. Section 102. BOUNDARIES. The boundaries of the City shall continue as now established until changed in the manner authorized by law. Section 103. POWERS OF CITY. The City shall have the power to make and enforce all laws and regulations in respect to municipal affairs, subject only to such restrictions and limitations as may be provided in this Charter or in the Constitution of the State of California. Section 104. CONSTRUCTION. The general grant of power to the City under this Charter shall be construed broadly in favor of the City. The specific provisions enumerated in this Charter are intended to be andshall be interpreted as limitations upon the general grant of power and shall be construed narrowly. If any provisions of this Charter, or the application thereof to any person or circumstance is held invalid, the remainder of the Charter and the application of such provision to other persons or circumstances, shall not be affected thereby. Section 105. INTERGOVERNMENTAL RELATIONS. The City may exercise any of its powers or perform any of its functions and may participate in the financing thereof, jointly or in cooperation, by contract or otherwise, with any one or more states or civil divisions or agencies thereof, or the United States or any agency thereof. ARTICLE II FORM OF GOVERNMENT Section 200. COUNCIL-ADMINISTRATOR MANAGER FORM OF GOVERNMENT. The municipal government provided by this Charter shall be known as the Council- Ma�form of government. Proposed Charter Revisions March 17-Dapkus Notes(2) 1 KEY INSERTIONS: Bold 14 pt. font, Double un erli DELETIONS Silk Proposed Charter Language - March 17, 2010 ARTICLE III ELECTIVE OFFICES Section 300. CITY COUNCIL, ATTORNEY, CLERK AND TREASURER. TERMS. The elective officers of the City shall consist of a City Council of seven members, a City Clerk, a City Treasurer and a City Attorney, all to be elected from the City at large at the times and in the manner provided in this Charter and who shall serve for terms of four years and until their respective successors qualify. Subject to the provisions of this Charter, the members of the City Council in office at the time this Charter takes effect shall continue in office until the expiration of their respective terms and until their successors are elected and qualified. Four members of the City Council shall be elected at the general municipal election held in 1966, and each fourth year thereafter. Three members of the City Council shall be elected at the general municipal election held in 1968, and each fourth year thereafter. No person shall be elected as a member of the City Council for more than two consecutive terms and no person who has been a member for more than two years of a term to which some other person was elected a member shall be elected to the City Council more than one further consecutive term. Subject to the provisions of this Charter, the City Clerk, City Treasurer and City Attorney in office at the time this Charter takes effect shall continue in office until the expiration of their respective terms and the qualification of their successors. A City Clerk and City Treasurer shall be elected at the general municipal election held in 1968, and each fourth year thereafter. A City Attorney shall be elected in 1966, and each fourth year thereafter. The term of each member of the City Council, the City Clerk, the City Treasurer and the City Attorney shall commence on the first Monday following the certification of the his election. Ties in voting among candidates for office shall be settled by the casting of lots. If no candidate meets the qualifications for office of the City Clerk, City Treasurer. or City Attorney, the City Council shall fill that position by appointment until the next municipal general election in which a qualified candidate is elected. Section 301. POWERS VESTED IN CITY COUNCIL. All powers of the City shall be vested in the City Council except as otherwise provided in this Charter. Section 302. COMPENSATION. The members of the City Council including the Mayor shall receive as compensation for their services as such a monthly salary in the sum of One Hundred Seventy-five Dollars per month. In addition, each member of the City Council shall receive reimbursement on order of the City Council for Council authorized traveling and other expenses when on official duty upon submission of itemized expense accounts therefor. In addition, members shall receive such reasonable and adequate amounts as may be established by ordinance, which Proposed Charter Revisions March 17-Dapkus Notes(2) 2 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS Sifikethfeu.,A Proposed Charter Language - March 17, 2010 amounts shall be deemed to be reimbursement to them of other routine and ordinary expenses, losses and costs imposed upon them by virtue of their serving as City Councilpersons. Section 303. MEETINGS AND LOCATION. (a) Regular Meetings. The City Council shall hold regular meetings at least twice each month at such time as it shall fix by ordinance or resolution and may adjourn or re-adjourn any regular meeting to a date and hour certain which shall be specified in the order of adjournment and when so adjourned each adjourned meeting shall be a regular meeting for all purposes. If the hour to which a meeting is adjourned is not stated in the order of adjournment, such meeting shall be held at the hour for holding regular meetings. If at any time any regular meeting falls on a holiday such regular meeting shall be held on the next business day. (b) Special Meetings. A special meeting may be called at any time by the Mayor; or by a majority of the members of the City Council, by written notice to each member of the City Council and to each local newspaper of general circulation, radio or television station requesting notice in writing. Such notice must be delivered personally or by mail at least twenty-four hours before the time of such meeting as specified in the notice. The call and notice shall specify the time and place of the special meeting and the business to be transacted. No other business shall be considered at such meeting. If any person entitled to such written notice files a written waiver of notice with the City Clerk, it may be dispensed with. This notice requirement shall be considered fulfilled as to any person who is actually present at the meeting at the time it convenes. In the event of an emergency affecting the public peace,health or safety, a special meeting may be called as provided in this section with less than twenty-four hours written notice by the Mayor Pro Tem in the Mayor's absence or by any member of the City Council in the absence of both the Mayor and Mayor Pro Tem provided that the nature of the emergency is set forth in the minutes of the meeting. (c)_ Place of Meetings. All regular meetings shall be held in the Council Chambers of the City or in such place within the City to which any such meeting may be adjourned. If, by reason of fire, flood or other,emergency, it shall be unsafe to meet in the place designated, the meetings may be held for the duration of the emergency at such place within the City as is designated by the Mayor, or, if he should fail to act,by a majority of the members of the City Council. (d) ®pen Meetings. All regular and special meetings of the City Council shall be open and public, and all persons shall be permitted to attend such meetings, except that the provisions of this section shall not apply to executive sessions. Subject to the rules governing the conduct of City Council meetings, no person shall be denied the right to be heard by the City Council. Proposed Charter Revisions March17-Dapkus Notes(2) 3 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS S*"i'_�"= Proposed Charter Language - March 17, 2010 e)Dissemination of information. City Council shall adopt rules to ensure thorough and timely dissemination of information via current technolo�v by resolution. Section 304. QUORUMS,PROCEEDINGS AND RULES OF ORDER. (a) Quorum. A majority of the members of the City Council shall constitute a quorum to do business but a lesser number may adjourn from time to time. In the absence of all the members of the City Council from any regular meeting or adjourned regular meeting, the City Clerk may declare the same adjourned to a stated day and hour. The City Clerk shall cause written notice of a meeting adjourned by less than a quorum or by the City Clerk to be delivered personally or by mail to each Council member at Ieast twenty-four hours before the time to which the meeting is adjourned, or such notice may be dispensed with in the same manner as specified in this Charter for dispensing with notice of special meetings of the City Council. (b) Proceedings. The City Council shall judge the qualification of its members as set forth by the Charter. It shall judge all election returns. Each member of the City Council shall have the power to administer oaths and affirmations in any investigation or proceeding pending before the City Council. The City Council shall have the power and authority to compel the attendance of witnesses, to examine them under oath and to compel the production of evidence before it. Subpoenas shall be issued in the name of the City and be attested by the City Clerk. They shall be served and complied with in the same manner as subpoenas in civil actions. Disobedience of such subpoenas, or the refusal to testify (upon other than constitutional grounds), shall constitute a misdemeanor, and shall be punishable in the same manner as violations of this Charter are punishable. The City Council shall have control of all legal business and proceedings and all property of the legal department, and may employ other attorneys to take charge of or may contract for any prosecution,litigation or other legal matter or business. (c) Rules of Order. The City Council shall establish rules for the conduct of its proceedings and evict or prosecute any member or other person for disorderly conduct at any of its meetings. Upon adoption of any ordinance, resolution, or order for payment of money, or upon the demand of any member, the City Clerk shall call the roll and shall cause the ayes and noes taken on the question to be entered in the minutes of the meeting. Section 305. PRESIDING OFFICER. At the Council meeting at which any Council member is installed following any general or special municipal election, and at any time when there is a vacancy in the office of Mayor, the City Council shall meet and shall elect one of its members as its presiding officer, who shall have the title of Mayor. The Mayor may make and second motions and shall have a voice and vote in all its proceedings. The Mayor shall be the official head of the City for all ceremonial purposes; shall have the primary but not the exclusive responsibility for Proposed Charter Revisions March 17-Dapkus Notes(2) 4 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS S4iket4fetto Proposed Charter Language - March 17, 2010 interpreting the policies,programs and needs of the City govermnent to the people, and as occasion requires, may inform the people of any major change in policy or program; and shall perforin such other duties consistent with the office as may be prescribed by this Charter or as may be imposed by the City Council. The Mayor shall serve in such capacity at the pleasure of the City Council. Section 306. MAYOR PRO TEMPORE. The City Cetiii it shall also designates ofie of its Eetineil. The Mayor Pro Tempore shall perform the duties of the Mayor during the Mayor's absence or disability or at the Mayor's request. (a) At the City Council meeting following any general or special municipal election at which any council member is installed, or as soon thereafter as the results of the election are certified, the City Council shall elect a Mayor Pro Tempore. In non-election years, the selection of Mayor Pro Tempore shall be made at the City Council meeting date closest to the anniversary date of the selections in the election years. The Mayor Pro Tem_ pore shall serve..a term of one year. The Mayor Pro Tempore shall then become Mayor the following year. (b)The member of the City Council having the longest consecutive City Council service shall become the Mayor Pro tempore. (I) In the event that two City Council Members have the same length of service, then the member who received the greatest number of votes in the last Council election in which such member was elected shall become Mayor Pro Tempore. (2) If any member declines their term as it arises in rotation, that member shall remain in the same place in the rotation cycle as if they had served. (3) Any City Council member who has served as Mayor within the last five years will not be eligible for election as Mayor Pro Tempore. Section 307. NON-INTERFERENCE WITH ADMINISTRATION. Except as otherwise provided in this Charter, no member of the City Council shall order, directly or indirectly, the appointment by the City ^dfninistfate Manager, or by any of the department heads in administrative service of the City, of any person to any office or employment, or removal therefrom. Except for the purpose of investigation and inquiry, the members of the City Council shall deal with the administrative service under the jurisdiction of the City Admiflistfatef Proposed Charter Revisions March 17-Dapkus Notes(2) 5 KEY INSERTIONS: Bold 14 pt. font, Doub]e underline DELETIONS 84i Proposed Charter Language - March 17, 2010 Manager solely through the C ty ^dministf to- Manager and no member of the City Council shall give orders to any subordinate of the City dfflinistfate.- =Managet, either publicly or privately. No elected department head or staff of the Office of the elected department head shall be a member of the management negotiation team for the purposes of negotiations of memorandums of understanding with the employee bargaining units. Section 308. OFFICIAL. BONDS. The City Council shall fix by ordinance or resolution the amounts and terms of the official bonds of all officials or employees who are required by this Charter or by ordinance to give such bonds. All bonds shall be executed by responsible corporate surety, shall be approved as to form by the City Attorney, and shall be filed with the City Clerk. Premiums on official bonds shall be paid by the City. A blanket bond may be used if it provides the same protection as the required separate bond would provide. In all cases wherein an employee of the City is required to furnish a faithful performance bond, there shall be no personal liability upon, or any right to recover against, the employee's superior officer or other officer or employee or the bond of the latter, unless such superior officer, or other officer or employee is a party to the act or omission, or has-conspired in the wrongful act directly or indirectly causing the loss. Section 309. CITY ATTORNEY. POWERS AND DUTIES. To become and remain eligible for City Attorney the person elected or appointed shall, have graduated from a law school accredited by the American Bar Association, be an attorney at law, duly licensed as such gander the laws of the State of California, aM shall have been engaged in the practice of law in this State for at least three fire years prior to their election or appointment, and hay e three years management experience.. The City Attorney shall have the power and may be required to: (a) Represent and advise the City Council and all City officers in all matters of law pertaining to their offices. (b) Prosecute on behalf of the people any or all criminal cases arising from violation of the provisions of this Charter or of City ordinances and such state misdemeanors as the City has the power to prosecute,unless otherwise provided by the City Council. (c) Represent and appear for the City in any or all actions or proceedings in which the City is concerned or is a party, and represent and appear for any City officer or employee, or former Proposed Charter Revisions March 17-Dapkus Notes(2) 6 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS c._ n Proposed Charter Language - March 17, 2010 City officer or employee, in any or all civil actions or proceedings in which such officer or employee is concerned or is a party for any act arising out of their employment or by reason of their official capacity. (d) Attend all regular meetings of the City Council, unless excused, and give their advice or opinion orally or in.writing whenever requested to do so by the City Council or by any of the boards or officers of the City. (e) Approve in writing the form of all contracts made by and all bonds and insurance given to the City. (f) Prepare any and all proposed ordinances and City Council resolutions and amendments thereto. g) Devote such time to the duties of their office and at such place as may be specified by the City Council. (h) Perform such legal functions and duties incident to the execution of the foregoing powers as may be necessary. (1) Surrender to their successor all books, papers, files, and documents pertaining to the City's affairs. Assist a1 d coopel tc vjfll tile city 1-nanager consistent with Section 40.3 of thecliv Charter. -). (k)Provide advice related to compliance with the City Charter to all elected and appointed officials of the City. Section 310. CITY CLERK. POWERS AND DUTIES. To become and remain eligible for City Clerk the person elected or appointed shall have a bachelors degree in business, public administration, or a related field, have three years management experience, and hold a certification as a Municipal Clerk or obtain such certification within the first three years in office.. The City Clerk shall have the power and shall be required to: Proposed Charter Revisions March 17-Dapkus Motes(2) 7 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS c'~'�ik� Proposed Charter Language - March 17, 2010 (a) Attend all meetings of the City Council, unless excused, and be responsible for the recording and maintaining of a full and true record of all of the proceedings of the City Council in beeks records that shall bear appropriate titles and be devoted to such purpose. (b) Maintain separate books records, in which shall be recorded respectively all ordinances and resolutions, with the certificate of the Clerk annexed to each thereof stating the same to be the original or a correct copy, and as to an ordinance requiring publication, stating that the same has been published or posted in accordance with this Charter. (c) Maintain separate records of all written contracts and official bonds. (d) Keep all books and records in their possession properly indexed and open to public inspection when not in actual use. (e) Be the custodian of the seal of the City. (f) Administer oaths or affirmations, take affidavits and depositions pertaining to the affairs and business of the City and certify copies of official records. (g) Be ex officio Assessor, unless the City Council, has availed itself, or does in the future avail itself, of the provisions of the general laws of the State relative to the assessment of property and the collection of City taxes by county officers, or unless the City Council by ordinance provides otherwise. (h) Have charge of all City elections. (i) Perform such other duties consistent with this Charter as may be required by ordinance or resolution of the City Council. U Assist and cooperate with the city manager- consistent with Section 403 of the City Charter. The City Clerk may, subject to the approval of the City Council, appoint such deputy or deputies to assist them or act for them, at such salaries or compensation as the Council may by ordinance or resolution prescribe. Proposed Charter Revisions March 17-Dapkus Notes(2) 8 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS S44(-e� Proposed Charter Language - March 17, 2010 (1244 ) Section 311. CITY TREASURER. POWERS AND DUTIES. To become and remain eligible for City Treasurer, the person elected or appointed shall have 3g� � � tl � � �� � 1 a ITIIIlil�lil _... . _.._... of five rears of financial and/or treasury experience and at least ears management experience and have either*- A Master's Degree in accounting, finance, business, or public administration: or A Bachelor's Degree in accounting, finance business or public administration i. --,-__with certification by the California Municipal Treasurer's Association, or their successor, within three years of election or appointment. The City Treasurer shall have the power and shall be required to: (a) Receive on behalf of the City all taxes, assessments, license fees and other revenues of the City, or for the collection of which the City is responsible, and receive all taxes or other money receivable by the City from the County, State or Federal governments, or from any court, or from any office, department or agency of the City. (b) Have and keep custody of all public funds belonging to or under control of the City or any office, department or agency of the City government and deposit or cause to be deposited all funds coming into their hands in such depository as may be designated by resolution of the City Council, or, if no such resolution be adopted, then in such depository designated in writing by the City Administrator Manager, and in compliance with all of the provisions of the State Constitution and laws of the State governing the handling; depositing and securing of public funds. (c) Pay out moneys only on proper orders or warrants in the manner provided for in this Charter. (d) Prepare and submit to the Director of Finance monthly written reports of all receipts, disbursements and fund balances, and shall file copies of such reports with the City Administrator Manager and City Council. Proposed Charter Revisions March 17-Dapkus Notes(2) 9 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS Swik� Proposed Charter Language - March.17, 2010 (e) Perform such other duties consistent with this Charter as may be required by ordinance or resolution of the City Council. fir s4z t and oot etatc %ith the city any t e c � 4i4teiit w idi `ection 40' of the City_ Charter. 44. .. The City Treasurer may, subject to the approval of the City Council, appoint such deputy or deputies to assist them or act for them, at such salaries or compensation as the Council may by ordinance or resolution prescribe. Section 312.VACANCIES, FORFEITURES AND REPLACEMENT. (a) Vacancies. A vacancy in the City Council or in any other office designated as elective by this Charter, from whatever cause arising, shall be filled by appointment by the City Council. (b) Forfeiture. If a member of the City Council is absent from all regular meetings of the City Council for a period of thirty consecutive days from and after the last regular City Council meeting attended by such member, unless by permission of the City Council expressed in its official minutes, the office shall become vacant. If an elected City officer pleads guilty or no contest to, or is convicted of a felony or ally crime invoking -i moral turpitude, or ceases to be an elector of the City, the office shall become vacant. The City Council shall declare the existence of such vacancy. Any elective officer of the City who shall accept or retain any other elective public office, except as provided in this Charter, shall be deemed thereby to have vacated the office under the City Government. (c) Replacement. In the event it shall fail to fill a vacancy by appointment within sixty days after such office shall become vacant, the City Council shall forthwith cause an election to be held to fill such vacancy for the remainder of the unexpired term. Section 313. CONFLICT OF INTEREST,NEPOTISM. (a) Conflict of Interest. The City Council shall adopt or approve rules and regulations regulating conflicts of interest and promoting fair dealing in all City business. Proposed Charter Revisions March]7-Dapkus Notes(2) 10 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS Stfik a ti Proposed Charter Language - March 17, 2010 (b) Nepotism. The City Council shall not appoint to a salaried position under the City government any person who is a relative by blood or marriage within the third degree of any one or more of the members of such City Council, nor shall the City ^dministf to.. Manager or any department head or other officer having appointive power appoint any relative of such person or of any Council member within such degree to any such position. This provision shall not affect the employment or promotional status of a person who has attained a salaried position with the City prior to the existence of a situation contemplated by this provision; however, Council members or officers with appointive powers in such a situation shall disqualify themselves from all decisions affecting the employment and promotional status of such person. ARTICLE IV APPOINTIVE OFFICES AND PERSONNEL Section 400. CITY MANAGER. COMPOSITION, TERM, ELIGIBILITY, REMOVAL. (a) Composition. There shall be a City Adffiinistfatef Manager who shall be the chief administrative officer of the City. (b) Term. The Admiflistfa City Manager shall be appointed by the affirmative vote of at least a majority of the members of the City Council and shall serve at the pleasure of the City Council; provided, however, that the person occupying the office shall not be removed from office except as herein provided. (c) Eligibility. The Administfatef City Manager shall be chosen on the basis of executive and administrative qualifications, with special reference to actual experience in and knowledge of accepted practice as regards the duties of the office as herein set forth. No person shall be eligible to be appointed City Manager or Acting City Adfflinistfatef Manager while serving as a member of the City Council nor within one year following the termination of membership on the City Council. (d) Removal. The City AdministfaiefManager shall not be removed from office during or within a period of ninety days next succeeding any municipal election at which a member of the City Council is elected. At any other time the City AdffiinistfatafManager may be removed only at a regular meeting of the City Council and upon the affirmative vote of a majority of the members of the City Council. At least thirty days prior to the effective date of removal, the City Manager shall be furnished with a written notice stating the Council's Proposed Charter Revisions March 17-Dapkus Notes(2) 11 KEY INSERTIONS: Bold 14 pt. font,Double underline DELETIONS S4i-k� Proposed Charter Language - March 17, 2010 intentions and, if requested by the City ^a,, mist,.., Manager, the reasons therefor. Within seven days after receipt of such notice, the City Adfflinisifatef Manager may by written notification to the City Clerk request a public hearing before the City Council, in which event the Council shall fix a time for a public hearing which shall be held at its regular meeting place before the expiration of the thirty-day period above referred to. The City water Manager shall appear and be heard at such hearing. After furnishing the City Administfaief Manager with written notice of the intended removal, the City Council may suspend the Adminisifatef City Manager from duty,but his compensation shall continue until removal as herein provided. In removing the City ^dministf t Manager, the City Council shall use its uncontrolled discretion and its action shall be final and shall not depend upon any particular showing or degree of proof at the hearing, the purpose of which is to allow the City Council and the City Manager to present to each other and to the public all pertinent facts prior to the final action of removal. Section 401. POWERS AND DUTIES. Except as otherwise provided in this Charter, the City AdfflifiiStF Manager shall be responsible to the City Council for the proper administration of all affairs of the City. Without limiting.this general grant of powers and responsibilities, the City Manager shall have the power and be required to: (a) Appoint, promote, demote, suspend or remove department heads, officers and employees of the City except elective officers. 14owe„e e depa.tm t head shall be appeinted of femoved A die I-'--'r Administfatof shall fifst have feviewed sueh appeiiitmefit of Femoval with!he City n,n ci-' >I-etineil �r Yrcrr (b) Prepare the budget annually, submit it to the City Council, and be responsible for its administration upon adoption. (c) Prepare and submit to the City Council as of the end of each fiscal year, a complete report on the finances of the City, and annually or more frequently, a current report of the principal administrative activities of the City. (d) Keep the City Council advised of the financial condition and future needs of the City and make such recommendations as may seem desirable. (e) Maintain a centralized purchasing system for all City offices, departments and agencies. (f) Prepare, administer and enforce rules and regulations recommended to and adopted by the City Council governing the contracting for,purchase, inspection, storage, inventory, distribution Proposed Charter Revisions March 17-Dapkus Notes(2) 12 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS c.... �, Proposed Charter Language - March 17, 2010 and disposal of all supplies, materials and equipment required by any office, department or agency of the City government. (g) Be responsible for the compliance by the City with the laws of the State pertaining to the City, the provisions of this Charter and the ordinances, franchises and rights of the City. (h) Subject to policy established by the City Council, exercise control of all administrative offices and departments of the City and of all appointive officers and employees except those directly appointed by the City Council and prescribe such general rules and regulations as he may deem necessary or proper for the general conduct of the administrative offices and departments of the City under his jurisdiction. (1) Perform such other duties consistent with this Charter as may be required by the City Council. Section 402. ACTING CITY MANAGER. During any temporary absence or disability of the City Administfa4of 1VIa>rnager t'he c!: , NWministfatof shall sefve as Aefing City Adffliiiistfaiof. Dufing any tefflpet:a� absenee of disability of both the City Administfate ra the A-,", : nt Cit., ^a,,, isif to the City ^dminisif too NIaH&aLer shall appoint one of the other officers or department heads of the City to serve as Acting City .h..... >a e.-Manager. In the event the City fails to make such appointment, such appointment may be made by the City Council. Section 403. PERSONNEL. In addition to the City Council, a City Clerk, a City Treasurer, a City Attorney and City ^dffli„istf:ate-Alanage>r, the officers and employees of the City shall consist of such other officers, assistants, deputies and employees as the City Council may provide by ordinance or resolution. The City Council shall establish such reasonable compensation and fringe benefits as are appropriate by ordinance or resolution for such offices, officials and employees except as herein provided. The City Council shall maintain by ordinance a comprehensive personnel system for the City. The City 1Vla>rnager , �' and any officers designated as elective by the Charter shall be exempt. The system shall consist of the establishment of minimum standards of employment and qualifications for the various classes of employment and procedures to be followed in advancement, demotion, suspension and discharge of employees included within the system, as the City Council shall determine to be for the best interest of the public service. The ordinance shall designate the appointive officers and employees who shall be included within the system. By subsequent ordinances the City Council may amend the system or the list of appointive officers and employees included within the system_, provided, howevef, the system, ne offieef of eWlayee sha-1-1 b-P 1;,4hd__4;_Rwn theizeffem (unless the office of position is Proposed Charter Revisions March]7-Dapkus Notes(2) 13 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS C*�T 'T^_�="T«� Proposed Charter Language - March 17, 2010 e-leetien by a majefity of the V otefs v etiflg on eh pfopositiefl. The system shall comply with all other provisions of this Charter. It shall be the duty of all department beads, whether appointed or elected, to assist.and cooperate with the City Manager in administering the affairs of the City in the most efficient fiscally responsible and harmonious manner consistent with the duties as prescribed by law. City Charter,or by ordinance. Section 404.RETIREMENT SYSTEM. The City shall participate in a retirement system. Section 405. BOARDS, COMMISSIONS AND COMMITTEES. The City Council shall establish such boards, commissions and committees as are deemed necessary for the orderly functioning of the City. All such boards, commissions and committees shall report directly to the City Council. ARTICLE V ORDINANCES AND RESOLUTIONS Section 500. REGULAR ORDINANCES. ENACTMENT, ADOPTION, PUBLICATION, AMENDMENT, WHEN EFFECTIVE AND CODIFICATION. (a) Enactment. In addition to such other acts of the City Council as are required by this Charter to be taken by ordinance, every act of the City Council establishing a fine or other penalty, or granting a franchise, shall be by ordinance. The enacting clause of all ordinances shall be substantially as follows: "The City Council of the City of Huntington Beach does ordain as follows:." No order for the payment of money shall be adopted or made at other than a regular or adjourned regular meeting. Upon introduction and seeend feadifig, an ordinance shall be read by title only. Unless a higher vote is required by other provisions of this Charter, the affirmative vote of at least four of the City Council shall be required for the enactment of any ordinance or for the making or approving of any order for the payment of money. All ordinances shall be signed by the Mayor and attested by the City Clerk. (b) Adoption. A regular ordinance shall be adopted only at a regular or adjourned regular meeting held no less than five days after its introduction. In the event that any ordinance is altered after its introduction, it shall be finally adopted only at a regular or adjourned regular Proposed Charter Revisions March 17-Dapkus Notes(2) 14 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS c..-� _ Proposed Charter Language - March 17, 2010 meeting held no less than five days after the date it was so altered. The correction of typographical or clerical errors shall not constitute the making of an alteration within the meaning of the foregoing sentence. (c) Publication. The City Clerk shall cause each ordinance to be posted in three places designated by the City Council within the City and to be published by title with a brief summary at least once within fifteen days after its adoption in a daily. semiweekly or weekly newspaper, published in the County or the City and circulated in the City, which is selected by the City Council for that purpose _, Current t chnoloov should be used tt g t t ;to ensure the widest possible dissemination. (d) Amendment. The amendment of any section or subsection of an ordinance may be accomplished solely by the re-enactment of such section or subsection at length, as amended. (e) When Effective. Every ordinance shall become effective thirty days from and after the date of its adoption, except the following, which shall take effect upon adoption: (1) An ordinance calling or otherwise relating to an election; (2) An improvement proceeding ordinance adopted under some special law or procedural ordinance relating thereto; (3) An ordinance declaring the amount of money necessary to be raised by taxation, or fixing the rate of property taxation, or levying the annual tax upon property. (4) An emergency ordinance adopted in the manner provided in this Charter. (f) Codification. Detailed regulations pertaining to any subject and comprehensive codifications of valid ordinances may be adopted by reference, with the same effect as an ordinance, in the manner set forth herein; however, such regulations and codifications need not be published in the manner required for other ordinances, but not less than three copies thereof shall be filed for use and examination by the public in the office of the City Clerk prior to adoption. Ordinances codified shall be repealed as of the effective date of the codification. Amendments to the code shall be enacted by ordinance. Section 501. EMERGENCY ORDINANCES. Any ordinance declared by the City Council to be necessary as an emergency measure for the immediate preservation of the public peace, health, or safety, and containing a statement of the reasons for its urgency, may be adopted in the manner provided in Section 500 except that such emergency ordinance may be introduced; enacted and adopted at one and the same regular or special meeting and shall take effect immediately upon adoption if passed by at least five affirmative votes. An emergency ordinance shall repeal automatically alter 120 days. Proposed Charter Revisions March 17-Dapkus Notes(2) 15 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS Swik- "=van Proposed Charter Language - March 17, 2010 Section 502. RESOLUTIONS. The City Council may act by resolution or minute order in all actions not required by this Charter to be taken by ordinance. Section 503. PUBLISHING OF LEGAL NOTICES. The City Council shall cause to be published all legal notices and other matters required to be published by law in a daily, semiweekly or weekly newspaper published in the County or the City and circulated in the City which is selected by the City Council for that purpose and using current technology. No defect or irregularity_ in proceedings taken under this section shall invalidate any publication where it is otherwise in conformity with this Charter or law or ordinance. ARTICLE VI FISCAL ADMINISTRATION Section 600. FISCAL YEAR. The fiscal year of the City shall be ffem ittly 1 to june zn ,,,,10 etheFwise established by efdinanee as set forth by resolution of the City Council. Section 601. ANNUAL BUDGET, PREPARATION BY THE CITY ADMINISTRATOR MANAGER. At such date as the City Administr-atof Manager shall determine, each board or commission and each department head shall furnish to the City Administfatof Manager, personally, or through the Director of Finance, estimates of the department's, board's or commission's revenue and expenditures for the ensuing fiscal year, detailed in such manner as may be prescribed by the City Administfatof Manager. In preparing the proposed budget, the City "dfflirist shall review the estimates, hold conferences thereon with the respective department heads, boards or commissions as necessary, and may revise the estimates as may be deemed advisable. Section 602. ANNUAL BUDGET. SUBMISSION TO THE CITY COUNCIL. The City A1Biri�tor- 1Vlanager shall submit the proposed budget to the City Council at least sixty thirty days prior to the beginning of each fiscal year. After reviewing the proposed budget and making such revisions as it may deem advisable, the City Council shall hold a public hearing thereon at least fifteen days prior to the beginning of each fiscal year and shall cause to be published a notice thereof not less than ten days prior to said hearing. Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least ten days prior to said hearing. Section 603. ANNUAL BUDGET. PUBLIC HEARING. At the time so advertised or at any time to which such public hearing shall from time to time be adjourned, the City Council shall hold a public hearing on the proposed budget, at which interested persons desiring to be heard shall be given such opportunity. Proposed Charter Revisions March 17-Dapkus Notes(2) 16 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS S*r' t-t� Proposed Charter Language - March 17, 2010 Section 604. ANNUAL BUDGET. FURTHER CONSIDERATION ANDADOPTION. At the conclusion of the public hearing the City Council shall further consider the proposed budget and make any revisions thereof that it may deem advisable and on or before the last day of the fiscal year it shall adopt the budget with revisions, if any, by the affirmative vote of at least a majority of the total members of the Council. Upon final adoption, the budget shall be in effect for the ensuing fiscal year. Copies thereof, certified by the City Clerk, shall be filed with the City ^dmini.,t fatef Manager, Director of Finance, City Treasurer and the person retained by the City Council to perform the post audit function, and a further copy shall be placed, and shall remain on file in the office of the City Clerk where it shall be available for public inspection. The budget so certified shall be reproduced and copies made available for the use of the public and of departments, offices and agencies of the City. Section 605. ANNUAL BUDGET APPROPRIATIONS. From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several departments, offices and agencies for the respective objects and purposes therein named; provided, however, that the City may transfer funds from one object or purpose to another within the same department, office or agency. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered. At any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative vote of at least a majority of the total members of the City Council. Section 606. DETERMINATION OF CITE' TAX RATE. The City Council shall prescribe by ordinance for the assessment, levy and collection of taxes upon property which is taxable for municipal purposes. If the City Council fails to fix the rate and levy taxes on or before August 31 in any year, the rate for the next preceding fiscal year shall thereupon be automatically adopted and a Tax. at such rate shall be deemed to have been levied on all taxable property in the City for the current fiscal year. Section 607. TAX LIMITS. (a) The City Council shall not levy a property tax for municipal purposes in excess of One Dollar annually on each One Hundred Dollars of the assessed value of taxable property in the City, except as otherwise provided in this section, unless authorized by the affirmative vote of a . majority of the electors voting on a proposition to increase such levy at any election at which the question of such additional levy for municipal purposes is submitted to the electors. The number of years that such additional levy is to be made shall be specified in such proposition. Proposed Charter Revisions March 17-Dapkus Notes(2) 17 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS Stf�g" Proposed Charter Language - March 17, 2010 (b) There shall be levied and collected at the same time and in the same manner as other property taxes for municipal purposes are levied and collected, as additional taxes not subject to the above limitation, if no other provision for payment thereof is made: 1. A tax sufficient to meet all liabilities of the City of principal and interest of all bonds and judgments due and unpaid, or to become due during the ensuing fiscal year, which constitute general obligations of the City; and 2. A tax sufficient to meet all obligations of the City for the retirement-system in which the City participates, due and unpaid or to become due during the ensuing fiscal year. (c) Special levies, in addition to the above and not subject to the above limitation, may be made annually,based on City Council approved estimates, for the following specific purposes,but not to exceed the following respective limits for those purposes for which limits are herein set forth, to wit: parks and recreation and human services not to exceed $0.20 per One Hundred Dollars; Libraries not to exceed $0.15 per One Hundred Dollars; promotional interests and cultural affairs not to exceed $0.07 per One Hundred Dollars; and civil defense and disaster preparedness not to exceed $0.03 per One Hundred Dollars. The proceeds of any special levy shall be used for no other purpose than that specified. Section 608. VOTE REQUIRED FOR TAX MEASURES. No tax, property tax, or other measure whose principal purpose is the raising of revenue, or any increase in the amount thereof, shall be levied, enacted or established except by ordinance adopted by the affirmative vote of at least five (5) members of the City Council; provided, however, that any tax levied or collected pursuant to Section 607(b) of this Charter shall be exempt from the minimum voting requirement of this section. This section shall not apply to any license, permit, or any other fee or charge whose principal purpose is to pay or reimburse the City for the cost of performing any regulatory function of the City under its police power in connection with the City's duty to preserve or maintain the public peace,health, safety and welfare. This section shall not apply to any user or service fee or charge provided such fee or charge is directly related to such use or service, is charged to the user or person receiving such service, and is to pay or reimburse the City for the costs of providing such use or service. This section shall not apply to any fee or charge relating to any franchise or proprietary function of the City. Section 609. REAL, ESTATE TRANSFER TAX. The City Council shall not levy a tax on the transfer or conveyance of any interest in real property unless authorized by the affirmative vote of a Proposed Charter Revisions March 17-Dapkus Notes(2) 1 g KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS c4ik-e "r Proposed Charter Language - March 17, 2010 majority of the electors voting on a proposition submitted to the electors to authorize_ such tax at a general or special election. Section 610. BONDED DEBT LIMIT. The City shall not incur an indebtedness evidenced by general obligation bonds which shall in the aggregate exceed the sum of 12 percent of the total assessed valuation, for purposes of City taxation, of all the real and personal property within the City. No bonded indebtedness which shall constitute a general obligation of the City may be created unless authorized by the affirmative vote of the majority required by law of the electors voting on such proposition at any election at which the question is submitted to the electors. Section 611. REVENUE BONDS. Bonds which are payable only out of such revenues, other than taxes, as may be specified in such bonds, may be issued when the City Council by ordinance shall have established a procedure for the issuance of such bonds. Such bonds, payable only out of revenues; shall not constitute an indebtedness or general obligation of the City. No such bonds payable out of revenues shall be issued without the assent of the majority of the voters voting upon the proposition for issuing the same at an election at which such proposition shall have been duly submitted to the registered voters of the City. It shall be competent for the City to make contracts and covenants for the benefit of the holders of any such bonds payable only from revenues and which shall not constitute a general obligation of the City for the establishment of a fund or funds, for the maintaining of adequate rates or charges, for restrictions upon further indebtedness payable out of the same fund or revenues, for restrictions upon transfer out of such fund, and other appropriate covenants. Money placed in any such special fund for the payment of principal and/or interest on any issue of such bonds or to assure .the application thereof to a specific purpose shall not be expended for any other purpose whatever except for the purpose for which such special funds were established and shall be deemed segregated from all other funds of the City and reserved exclusively for the purpose for which such special fund was established until the purpose of its establishment shall have been fully accomplished. Section 612. PUBLIC UTILITIES AND PARKS AND BEACHES. (a) No public utility or park or beach or portion thereof now or hereafter owned or operated by the City shall be sold, leased, exchanged or otherwise transferred or disposed of unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted. Proposed Charter Revisions March 17-Dapkus Notes(2) 19 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS c*"' "r Proposed Charter Language - March 17, 2010 (b) No golf course, driving range, road, building over three thousand square feet in floor area nor structure costing more than $100,000.00 $161,000.00 may be built on or in any park or beach or portion thereof now or hereafter owned or operated by the City unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted after the appropriate environmental assessment. conceptual cost estimate. and reasonable project description has been completed and widely disseminated to the public. Effective January 1. 2011. and each year thereafter, the maximum cost will be adjusted by the Consumer Price Index for the a Los Angeles-Riverside- Orange County area. (c) Section 612(a) and 612(b) shall not apply; (1) to libraries or piers; (2) to any lease, franchise, concession agreement or other contract where; - the contract is to perform an act or provide a service in a public park or beach AND - such act was being performed or service provided at the same location prior to January 1, 1989 AND the proposed lease, franchise, concession agreement or other contract would not increase the amount of parkland or beach dedicated to or used by the party performing such act or providing such service. (3) to above ground public works utiljty structures under 3,000 square feet• (4) to public works t ° -y—underground utiliti- structures if park or beach use is not jmpeded• (5) to any public works construction,maintenance or repair mandated by state or federal law that does not negatively impact recreational opportunities: or (6) to renewable energy projects that do not negatively impact recreational opportunities. (d) If any section, subsection, part, subpart, paragraph, clause or phrase of this amendment, or any amendment or revision of this amendment, is for any reason held to be invalid or unconstitutional, the remaining sections, subsections, parts, subparts, paragraphs, clauses or phrases shall not be affected but shall remain in full force and effect. (12/7/90) Proposed Charter Revisions March 17-Dapkus Notes(2) 20 KEY INSERTIONS: Bold 14 pt. font,Double underline DELETIONS Sttil� Proposed Charter Language - March 17, 2010 Section 613. EXECUTION OF CONTRACTS. Except as hereinafter provided, the City shall be bound by a contract only if it is made in writing, approved by the City Council and signed on behalf of the City by the Mayor and City Clerk or by a City officer designated by the City Council and only upon the direction of the City Council. Exceptions to this procedure are as follows: (a) By ordinance or resolution the City Council may authorize the City Adfiiiflistfatef Manager or other officer to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services or other items included within the budget approved by the City Council, and may impose a monetary limit upon such authority. (b) By ordinance or resolution, the City Council may provide a method for the sale or exchange of personal property not needed in the City service or not fit for the purpose for which intended, and for the conveyance of title thereto. (c) Contracts for the sale of the products, commodities or services of any public utility owned, controlled or operated by the City may be made by the manager of such utility or by the head of the department or City Adfninistfatof1Vianaer upon forms approved by the City Manager and at rates fixed by the City Council. Section 614. CONTRACTS ON PUBLIC WORKS. Except as hereinafter expressly provided, every contract involving an expenditure of fflore-than Twenty five "T'hOUSara D011afs ($25 nnm as set forth by ordinance of the City Council for the construction or improvement (excluding maintenance and repair) of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds, and each separate purchase of materials or supplies for the same, where the expenditure required for such purchase shall exceed the slim of Twenty five Thousand Do!! ($25,000) amount set by ordinance, shall be let to the lowest responsible bidder after notice by publication in accordance with Section 503 by two or more insertions, the first of which shall be at least ten days before the time for opening bids. The City Council may reject any and all bids presented and may readvertise in its discretion. After rejecting bids, or if no bids are received, or without advertising for bids if the total amount of the contract or project is less than Twenty five Thousand Dellafs ($25,900 is below the amount set by ordinance, the City Council may declare and determine that in its opinion, the work in question may be performed better or more economically by the City with its own employees, or that the materials or supplies may be purchased at lower price in the open market, and after the adoption of a resolution to this effect by the affirmative vote of a majority of the total members of the City Council, it may proceed to have said work done or such materials or supplies purchased in the manner stated without further observance of the provisions of this section. Proposed Charter Revisions March 17-Dapkus Notes(2) 21 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS S4ike,"TTaAgt� Proposed Charter Language - March 17, 2010 All public works contracts exceeding the sum of Twewy five Thousand Dellafs (S25 nnn) the amount set by ordinance may be let and purchases exceeding the s of Twenty fiv-e Thottsaiid Dollars (e25 nnn) the amount set by ordinance-may be made without advertising for bids if such work or the purchase of such materials or supplies shall be deemed by the City Council to be of urgent necessity for the preservation of life, health, or property and shall be authorized by at least five affirmative votes of the City Council. Projects for the extension, replacement or expansion of the transmission or distribution system of any existing public utility operated by the City or for the purchase of supplies or equipment for any such project or any such utility may be excepted from the requirements of this section by the affirmative vote of a majority of the total members of the City Council. Section 615. GRANTING OF FRANCHISES. The City Council shall by ordinance regulate the granting of franchises for the City. Section 616. INDEPENDENT AUDIT. The City Council shall provide for an independent annual audit of all City accounts and may provide for such more frequent audits as it deems necessary. Such audits shall be made by a certified public accountant or firm of such accountants who have no personal interest, direct or indirect, in the fiscal affairs of the City government or any of its officers. The Council may, without requiring competitive bids, designate such accountant or firm annually provided that the designation for any particular fiscal year shall be made no later than thirty days after the beginning of such fiscal year. As soon as practicable after the end of the fiscal year, a final audit and report shall be submitted by such accountant to the City Council, one copy thereof to be distributed to each member. Additional copies of the audit shall be placed on file in the office of the City Clerk where they shall be available for inspection by the general public, and a copy of the financial statement as of the close of the fiscal year shall be published in the official newspaper. Section 617. INFRASTRUCTURE FUND. (a) All revenue raised by vote of the electors or imposed by vote of the City Council on or after March 5, 2002, by a measure which states that the revenue to be raised is for the purpose of infrastructure, as said term is defined in this paragraph, shall be placed in a separate fund entitled "Infrastructure Fund." The term "Infrastructure" shall mean long-lived capital assets that normally are stationary in nature and normally can be preserved for significantly greater number of years. They include storm drains, storm water pump stations, alleys, streets, highways, curbs and gutters, sidewalks, bridges, street trees, landscaped medians, parks, beach facilities, playgrounds, traffic signals, streetlights, block walls along arterial highways, and all public buildings and public ways. Interest earned on monies in the Infrastructure Fund shall accrue to that account. Monies in said Fund shall be utilized only for direct costs relating to infrastructure improvements or maintenance, including construction, design, engineering, Proposed Charter Revisions March]7-Dapkus Notes(2) 22 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS C'Y' 4+ Proposed Charter Language - March 17, 2010 project management, inspection, contract administration and property acquisition. Monies in said Fund shall not be transferred,loaned or otherwise encumbered for any other purpose. (b) Revenues placed in the Infrastructure Fund shall not supplant existing infrastructure funding. The average percentage of general fund revenues utilized for infrastructure improvements and maintenance, for the five- (5) year period of 1996 to 2001, is and was 14.95%. Upon adoption of the 2015/2016 budget, e€xpenditures for infrastructure improvements and maintenance,__excluding debt service �„1-se ent to 2001, shall not be reduced below 15% of general fund revenues based on a five- (5) year rolling average. (c) The City Council shall by ordinance establish a Citizens Infrastructure Advisory Board with the sole responsibility to conduct an annual review and performance audit of the Infrastructure Fund and infrastructure expenditures and which shall present a report of its findings to the City Council at a noticed public hearing prior to adoption of the following fiscal-year budget. ARTICLE VII ELECTIONS Section 700. GENERAL MUNICIPAL ELECTIONS. General municipal elections shall be held in the city on the first Tuesday after the first Monday in November in each even-numbered year. (12/9/82) Section 701. SPECIAL MUNICIPAL ELECTIONS. All other municipal elections that may be held by authority of this Charter, or of any law, shall be known as special municipal elections. Section 702. PROCEDURE FOR HOLDING ELECTIONS. All elections shall be held in accordance with the provisions of the Elections Code of the State of California, as the same now exists or hereafter may be amended, for the holding of municipal elections, so far as the same are not in conflict with this Charter. Section 703. INITIATIVE, REFERENDUM AND RECALL. There are hereby reserved to the electors of the City the powers of the initiative and referendum and of the recall of municipal elective officers. The provisions of the Elections Code of the State of California, as the same now exists or hereafter may be amended, governing the initiative and referendum and the recall of municipal officers, shall apply to the use thereof in the City so far as such provisions of the Elections Code are not in conflict with the provisions of this Charter. Section 704. NOMINATION PAPERS. Nomination papers for candidates for elective municipal office must be signed by not less than twenty nor more than thirty electors of the City. Proposed Charter Revisions March 17-Dapkus Notes(2) 23 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS c* ik i Proposed Charter Language - March 17, 2010 ARTICLE VII1 MISCELLANEOUS Section 800. TRANSITION. Elective officers and elective officers whose offices are made appointive of the City shall continue to hold such offices until the completion of their current terms and the election or appointment and qualification of their respective_successors under this Charter. All boards, commissions and committees presently in existence shall continue to act in accordance with their original grant of authority until such time as the City Council adopts appropriate ordinances pertaining to their activities or for one year, whichever occurs first. All lawful ordinances, resolutions, rules and regulations, and portions thereof, in force at the time this Charter takes effect and not in conflict or inconsistent herewith, are hereby continued in force until the same shall have been duly repealed, amended, changed or superseded by proper authority. Section 801. DEFINITIONS. -Unless the provisions or the context otherwise requires, as used in this Charter: (a) "Shall" is mandatory, and "may" is permissive. (b) "City" is the City of Huntington Beach and "department," "board," "commission," "agency," "officer," or "employee" is a department, board, commission, agency, officer or employee, as the case may be,of the City of Huntington Beach. (c) "County" is the County of Orange. (d) "State"is the State of California. (e) The masculine includes the feminine and the feminine includes the masculine. (f) The singular includes the plural and the plural the singular. (g) "Person" includes firm and corporation. Section 802. VIOLATIONS. The violation of any provision of this Charter shall be a misdemeanor and shall be punishable by a fine not exeeeding Five Hundfed Section 803.PROPERTY RIGHTS PROTECTION MEASURE. Proposed Charter Revisions March 17-Dapkus Notes(2) 24 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS S4i Proposed Charter Language - March 17, 2010 (a) The City shall not enact or enforce any measure which mandates the price or other consideration payable to the owner in connection with the sale, lease, rent. exchange or other transfer by the owner of real property. Any such measure is hereby repealed. (b) The word "mandates" as used in subsection (a) includes any measure taken by ordinance, resolution, administrative regulation or other action of the City to establish, continue, implement or enforce any control or system of controls on the price or other terns on which real property in the city may be offered, sold, leased, rented, exchanged or otherwise transferred by its owner. The words "real property" as used in subsection (a) refer to any parcel of land or site, either improved or unimproved, on which a dwelling unit or residential accommodation is or may be situated for use as a home, residence or sleeping place. (c) This Section 803 shall not apply to: (1) any real property which contains serious health, safety, fire or building code violations, excluding those caused by disasters, for which a civil or criminal.citation has been issued by the City and remains unabated for six months or longer; (2) any real property owned by a public entity, and real property where the owner has agreed by contract with the public entity, including the City and any of its related agencies, to accept a financial contribution or other tangible benefit including without limitation, assistance under the Community Redevelopment Law; (3)any planning or zoning power of the City as relates to the use, occupancy or improvement of real property and to any real property which the City or any of its related agencies may acquire by eminent domain,purchase, grant or donation; (4) any power of the City to require a business license for the sale or rental of real property, whether for regulation Or general revenue purposes; (5) any dwelling unit or accommodation in any hotel, motel or other facility when the transient occupancy of that dwelling unit or accommodation is subject to a transient occupancy tax; or (6) to impair the obligation of any contract entered into prior to the enactment of this Section 803 or otherwise required by State law. Swim 804. CHARTER REVIEW. The City Council shall convene a citizen's Charier Review Commission to conduct a review of the City Charter_ no less fre uently than every ten years. Proposed Charter Revisions March 17-Dapkus Notes(2) 25 KEY INSERTIONS: Bold 14 pt. font,Double underline DELETIONS �tfiil� Proposed Charter Language - March 17, 2010 Proposed Charter Revisions March 17-Dapkus Notes(2) 26 AL 'M� CITY OF HUNTINGTON BEACH CITY CHARTER t• COUNme r Incorporated,February 17, 1909 (Election February 9, 1909; 94 votes cast for incorporation and 25 votes against) CHARTER AMENDMENTS Effective Dates Charter Election Certified-Res. 773 Results 5/3/37....................5/17/37 Amendments...................................................................2/2/40 Amendments.................................................................I/29/47 Amendments.................................................................1/27/49 Amendments...................................................................5/9/49 Revised..................................................................................5/1/50 NewCharter..................................................................2/10/66 Amendments.................................................................1/18/71 Amendments...................................................................6/5/75 Amendments................................................................12/10/7 6 Amendments.................................................................7/17/78 Amendments..(Consolidation November)................................12/9/82 Amendments.................................................................12/7/84 Amendments.................................................................12/7/90 Amendments..................................................................4/22/02 Revised..................................................................................4/ 110 09-2312/Proposed Revised City Chatter CITY CHARTER TABLE OF CONTENTS ARTICLE 1. INCORPORATION AND POWERS OF THE CITY Section 100. Name Section 101. Seal Section 102. Boundaries Section 103.Powers of City_ Section 104. Construction Section 105. Intergovernmental Relations ARTICLE 11.FORM OF GOVERNMENT Section 200. Council-Manager Form of Government ARTICLE III.ELECTIVE OFFICES Section 300. City Council,Attorney,Clerk and Treasurer. Terms Section 301.Powers Vested in City Council Section 302.Compensation Section 303.Meetings and Location Section 304. Quorums,Proceedings and Rules of Order Section 305. Presiding Officer Section 306.Mayor Pro Tempore Section 307.Non-interference with Administration Section 308.Official Bonds Section 309.City Attorney.Powers and Duties Section 310.City Clerk.Powers and Duties Section 311. City Treasurer.Powers and Duties Section 312.Vacancies,Forfeitures and Replacement Section 313.Conflict of Interest,Nepotism ARTICLE IV.APPOINTIVE OFFICES AND PERSONNEL Section 400. City Manager. Composition,Term,Eligibility,Removal Section 401.Powers and Duties Section 402.Acting City Manager Section 403.Personnel Section 404. Retirement System Section 405.Boards,Commissions and Committees ARTICLE V.ORDINANCES AND RESOLUTIONS Section 500.Regular Ordinances. Enactment,Adoption,Publication,Amendment, When Effective and Codification Section 501.Emergency'Ordinances Section 502.Resolutions Section 503.Publishing of Legal Notices ARTICLE VI.FISCAL ADMINISTRATION Section 600. Fiscal Year Proposed Revised City Charter C-1 jm/ke Section 601.Annual Budget, Preparation by the City Manager Section 602.Annual Budget. Submission to the City Council Section 603. Annual Budget.Public Hearing Section 604.Annual Budget.Further Consideration and Adoption Section 605. Annual Budget Appropriations Section 606. Determination of City Tax Rate Section 607.Tax Limits Section 608.Vote Required for Tax Measures_ Section 609. Real Estate Transfer Tax Section 610. Bonded Debt Limit Section 611. Revenue Bonds *Section 612.Public Utilities and Parks and Beaches* Section 613. Execution of Contracts Section 614. Contracts on Public Works Section 615. Granting of Franchises Section 616. Independent Audit Section 617. Infrastructure Fund ARTICLE VII.ELECTIONS Section 700.General Municipal Elections ;Section 701. Special Municipal Elections Section 702.Procedure for Holding Elections Section 703. Initiative,Referendum and Recall Section 704.Nomination Papers ARTICLE VIII.MISCELLANE®US Section 800. Transition Section 801.Definitions Section 802. Violations Section 803. Property Rights Protection Measure Section 804. Charter Review O Following is a motion adopted by the City Council on July 11, 1994. Inclusion of this motion on this page of the Charter is for recordkeeping purposes. Should the City Council rescind this motion, reference to it on this page of the Charter must be removed: It is the intent of Charter Section 612, the Measure "C" amendment, that a vote of the people be the final approval of projects approved by the city for construction on park land or beaches. Therefore, all projects.falling under the criteria of Charter Section 612 must obtain all city approvals prior to being submitted to a vote of the people. The cost for the ballot measure shall be borne by the applicant for the project. If the project requires a lease or other financial consideration, the terms and conditions of the lease and/or financial aspect of the project shall be included in the information provided for the Charter Section 612 vote. (City Council Minute Action of Julv 11, 1994) Proposed Revised City Charter C-2 jm/kc CHARTER We, the people of the City of Huntington Beach, State of California, do ordain and establish this Charter as the fundamental law of the City of Huntington Beach under the Constitution of the State of California. ARTICLE I INCORPORATION AND POWERS OF TIME CITY Section 100. NAME. The municipal corporation now existing and known as the City of Huntington Beach shall remain and continue to exist as a municipal corporation under its present name of"City of Huntington Beach." Section 101. SEAL. The City shall have an official- seal which may be changed from time to time by ordinance. The present official seal shall continue to be the official seal of the City until changed in the manner stated. Section 102. BOUNDARIES. The boundaries of the City shall continue as now established until changed in the manner authorized by law. Section 103. POWERS OF CITY. The City shall have the power to make and enforce all laws and regulations in respect to municipal affairs, subject only to such restrictions and limitations as may be provided in this Charter or in the Constitution of the State of California. Section 104. CONSTRUCTION. The general grant of power to the City under this Charter shall be construed broadly in favor of the City. The specific provisions enumerated in this Charter are intended to be and shall be interpreted as limitations upon the general grant of power and shall be construed narrowly. If any provisions of this Charter, or the application thereof to any person or circumstance is held invalid, the remainder of the Charter and the application of such provision to other persons or circumstances, shall not be affected thereby. Section 105. INTERGOVERNMENTAL RELATIONS. The City may exercise any of its powers or perform any of its functions and may participate in the financing thereof, jointly or in cooperation, by contract or otherwise, with any one or more states or civil divisions or agencies thereof, or the United States or any agency thereof ARTICLE II FORM OF GOVERNMENT Section 200. COUNCIL MANAGER FORM OF GOVERNMENT. The municipal government provided by this Charter shall be known as the Council Manager form of government. Proposed Revised City Charter C-3 lm/kc ARTICLE III ELECTIVE OFFICES Section 300. CITY COUNCIL, ATTORNEY, CLERK AND TREASURER. TERMS. The elective officers of the City shall consist of a City Council of seven members, a City Clerk, a City Treasurer and a City Attorney, all to be elected from the City at large at the times and in the manner provided in this Charter and who shall serve for terms of four years and until their respective successors qualify. Subject to the provisions of this Charter, the members of the City Council in office at the time this Charter takes effect shall continue in office until the expiration of their respective terms and until_their successors are elected and qualified. Four members of the City Council shall be elected at the general municipal election held in 1966, and each fourth year thereafter. Three members of the City Council shall be elected at the general municipal election held in 1968, and each fourth year thereafter. No person shall be elected as a member of the City Council for more than two consecutive terms and no person who has been a member for more than two years of a term to which some other person was elected a member shall be elected to the City Council more than one further consecutive teen. Subject to the provisions of this Charter, the City Clerk, City Treasurer and City Attorney in office at the time this Charter takes effect shall continue in office until the expiration of their respective terms and the qualification of their successors. A City Clerk and City Treasurer shall be elected at the general municipal election held in 1968, and each fourth year thereafter. A City Attorney shall be elected in 1966, and each fourth year thereafter. The term of each member of the City Council, the City Clerk, the City Treasurer and the City Attorney shall commence on the first Monday following the certification of the election. Ties in voting among candidates for office shall be settled by the casting of lots. If no candidate meets the qualifications for office of the City Clerk, City Treasurer, or City Attorney, the City Council shall fill that position by appointment until the next municipal general election in which a qualified candidate is elected. Section 301. POWERS VESTED IN CITY COUNCIL. All powers of the City shall be vested in the City Council except as otherwise provided in this Charter. Section 302. COMPENSATION. The members of the City Council including the Mayor shall receive as compensation for their services as such a monthly salary in the sure of One Hundred Seventy-five Dollars per month. In addition, each member of the City Council shall receive reimbursement on order of.the City Council for Council authorized traveling and other expenses when on official duty upon submission of itemized expense accounts therefor. In addition, members shall receive such reasonable and adequate amounts as may be established by ordinance, which amounts shall be deemed to be reimbursement to them of other routine and ordinary expenses, losses and costs imposed upon them by virtue of their serving as City Councilpersons. Section 303.MEETINGS AND LOCATION. (a) Regular Meetings. The City Council shall hold regular meetings at least twice each month at such time as it shall fix by ordinance or resolution and may adjourn or re-adjourn any regular meeting to a date and hour certain which shall be specified in the order of adjournment and Proposed Revised City Charter C-4 jm/kc when so adjourned each adjourned meeting shall be a regular meeting for all purposes. If the hour to which a meeting is adjourned is not stated in the order of adjournment, such meeting shall be held at the hour for holding regular meetings. If at any time any regular meeting falls on a holiday such regular meeting shall be held on the next business day. (b) Special Meetings. A special meeting may be called at any time by the Mayor, or by a majority of the members.of the City_Council, by written notice to each member of the City Council and to each local newspaper of general circulation, radio or television station requesting notice in writing. Such notice must be delivered personally or by mail at least twenty-four hours before the time of such meeting as specified in the notice. The call and notice shall specify the time and place of the special meeting and the business to be transacted. No other business shall be considered at such meeting. If any person entitled to such written notice files a written waiver of notice with the City Clerk, it may be dispensed with. This notice requirement shall be considered fulfilled as to any person who is actually present at the meeting at the time it convenes. In the event of an emergency affecting the public peace,health or safety, a special meeting may be called as provided in this section with less than twenty-four hours written notice by the Mayor Pro Tem in the Mayor's absence or by any member of the City Council in the absence of both the Mayor and Mayor Pro Tern provided that the nature of the emergency is set forth in the minutes of the meeting. (c) Place of Meetings. All regular meetings shall be held in the Council Chambers of the City or in such place within the City to which any such meeting may be adjourned. If, by reason of fire, flood or other emergency, it shall be unsafe to meet in the place designated, the meetings may be held for the duration of the emergency at such place within the City as is designated by the Mayor, or, if he should fail to act,by a majority of the members of the City Council. (d) Open Meetings. All regular and special meetings of the City Council shall be open and public, and all persons shall be pennitted to attend such meetings, except that the provisions of this section shall not apply to executive sessions. Subject to the rules governing the conduct of City Council meetings,no person shall be denied the right to be heard by the City Council. (e) Dissemination of Information. City Council shall adopt rules to ensure thorough and timely dissemination of information via current technology by resolution. Section 304. QUORUMS,PROCEEDINGS AND RULES OF ORDER. (a) Quorum. A majority of the members of the City Council shall constitute a quorum to do business but a lesser number may adjourn from time to time. In the absence of all the members of the City Council from any regular meeting or adjourned regular meeting, the City Clerk may declare the same adjourned to a stated day and hour. The City Clerk shall cause written notice of a meeting adjourned by less than a quorum or by the City Clerk to be delivered personally or by mail to each Council member at least twenty-four hours before the time to which the meeting is adjourned, or such notice may be dispensed with in the same manner as specified in this Charter for dispensing with notice of special meetings of the City Council. (b) Proceedings. The City Council shall judge the qualification of its members as set forth by the Charter. It shall judge all election returns. Each member of the City Council shall have the Proposed Revised City Charter C-5 jm/kc power to administer oaths and affirmations in any investigation or proceeding pending before the City Council. The City Council shall have the power and authority to compel the attendance of witnesses, to examine them under oath and to compel the production of evidence before it_ Subpoenas shall be issued in the name of the City and be attested by the City Clerk. They shall be served and complied with in the same manner as subpoenas in civil actions. Disobedience of such subpoenas,or the refusal to testify(upon other than constitutional grounds), shall constitute a misdemeanor, and shall be.punishable in the same manner- as violations of this Charter are - punishable. The City Council shall have control of all legal business and proceedings and all property of the legal department, and may employ other attorneys to take charge of or may contract for any prosecution, litigation or other legal matter or business. (c) Rules of Order. The City Council shall establish rules for the conduct of its proceedings and evict or prosecute any member or other-person for disorderly conduct at any of its meetings. Upon adoption of any ordinance, resolution, or order for payment of money, or upon the demand of any member, the City Clerk shall call the roll and shall cause the ayes and noes taken on the question to be entered in the minutes of the meeting. Section 305. PRESIDING OFFICER. At the Council meeting at which any Council member is installed following any general or special municipal election, and at any time when there is a vacancy in the office of Mayor, the City Council shall meet and shall elect one of its members as its presiding officer, who shall have the title of Mayor. The Mayor may make and second motions and shall have a voice and vote in all its proceedings. The Mayor shall be the official bead of the City for all ceremonial purposes; shall have the primary but not the exclusive responsibility for interpreting the policies, programs and needs of the City government to the people, and as occasion requires, may inform the people of any major change in policy or program; and shall perform such other duties consistent with the office as may be prescribed by this Charter or as may be imposed by the City Council. The Mayor shall serve in such capacity at the pleasure of the City Council. Section 306. MAYOR PRO TEMPORE. The Mayor Pro Tempore shall perform the duties of the Mayor during the Mayor's absence or disability or at the Mayor's request. (a) At the City Council meeting following any general or special municipal election at which any council member is installed, or as soon thereafter as the results of the election are certified, the City Council shall elect a Mayor Pro Tempore. In non-election years, the selection of Mayor Pro Tempore shall be made at the City Council meeting date closest to the anniversary date of the selections in the election years. The Mayor Pro Tempore shall serve a term of one year. The Mayor Pro Tempore shall then become Mayor the following year. (b) The member of the City Council having the longest consecutive City Council service shall become the Mayor Pro tempore. (1) In the event that two City Council Members have the same length of service, then the member who received the greatest number of votes in the last Council election in which such member was elected shall become Mayor Pro Tempore. (2) If any member declines their term as it arises in rotation, that member shall remain in the same place in the rotation cycle as if they had served. Proposed Revised City Charter C-6 im/kc (3) Any,City Council member who has served as Mayor within the last five years will not be eligible for election as Mayor Pro Tempore. Section 307. NON-INTERFERENCE WITH ADMINISTRATION. Except as otherwise provided in this Charter, no member of the City Council shall order, directly or indirectly, the appointment by the City Manager, or by any of the department heads in administrative service of the City, of any person to any office or employment, or removal therefrom. Except for the.purpose of investigation and inquiry, the members of the City Council shall deal with the administrative service under the jurisdiction of the City Manager solely through the City Manager, and no member of the City Council shall give orders to any subordinate of the City Manager, either publicly or privately. No elected department head or staff of the Office of the elected department head shall be a member of the management negotiation team for the purposes of negotiations of memorandums of understanding with the employee bargaining units. Section 308. OFFICIAL BONDS. The City Council shall fix by ordinance or resolution the amounts and terms of the official bonds of all officials or employees who are required by this Charter or by ordinance to give such bonds. All bonds shall be executed by responsible corporate surety, shall be approved as to form by the City Attorney, and shall be filed with the City Clerk. Premiums on official bonds shall be paid by the City. A blanket bond may be used if it provides the same protection as the required separate bond would provide. In all cases wherein an employee of the City is required to furnish a faithful performance bond, there shall be no personal liability upon, or any right to recover against, the employee's superior officer or other officer or employee or the bond of the latter, unless such superior officer; or other officer or employee is a party to the act or omission, or has conspired in the wrongful act directly or indirectly causing the loss. Section 309. CITY ATTORNEY. POWERS AND DUTIES. To become and remain eligible for City Attorney the person elected or appointed shall, have graduated from a law school accredited by the American Bar Association, be an attorney at law, duly licensed as such under the laws of the State of California, shall have been engaged in the practice of law in this State for at least five years prior to their election or appointment, and have three years management experience. The City Attorney shall have the power and may be required to: (a) Represent and advise the City Council and all City officers in all matters of law pertaining to their offices. (b) Prosecute on behalf of the people any or all criminal cases arising from violation of the provisions of this Charter or of City ordinances and such state misdemeanors as the City has the power to prosecute,unless otherwise provided by the City Council. (c) Represent and appear for the City in any or all actions or proceedings in which the City is concerned or is a party, and represent and appear for any City officer or employee, or former City officer or employee, in any or all civil actions or proceedings in which such officer or employee is concerned or is a party for any act arising out of their employment or by reason of their official capacity. Proposed Revised City Charter C-7 Jm/kc (d) Attend all regular meetings of the City Council, unless excused, and give their advice or opinion orally or in writing whenever requested to do so by the City Council or by any of the boards or officers of the City. (e) Approve in writing the form of all contracts made by and all bonds and insurance given to the City: - (f) Prepare any and all proposed ordinances and City Council resolutions and amendments thereto. (g) Devote such time to the duties of their office and at such place as may be specified by the City Council. (h) Perform such legal functions and duties incident to the execution of the foregoing powers as may be necessary. (1) Surrender to their successor all books, papers, files, and documents pertaining to the City's affairs. (j) Assist and cooperate with the City Manager consistent with Section 403 of the City Charter. (k) Provide advice related to compliance with the City Charter to all elected and appointed officials of the City. Section 310. CITY CLERK. POWERS AND DUTIES. To become and remain eligible for City Clerk, the person elected or appointed shall have a bachelors degree in business, public administration, or a related field, have three years management experience, and hold a certification as a Municipal Clerk or obtain such certification within the first three years in office. The City Clerk shall have the power and shall be required to: (a) Attend all meetings of the City Council, unless excused, and be responsible for the recording and maintaining of a full and true record of all of the proceedings of the City Council in records that shall bear appropriate titles and be devoted to such purpose. (b) Maintain separate records, in which shall be recorded respectively all ordinances and resolutions, with the certificate of the Clerk annexed to each thereof stating the same to be the original or a correct copy, and as to an ordinance requiring publication, stating that the same has been published or posted in accordance with this Charter. (c) Maintain separate records of all written contracts and official bonds. (d) Keep all records in their possession properly indexed and open to public inspection when not in actual use. (e) Be the custodian of the seal of the City. Proposed Revised City Charter C-8 jm/kc (f) Administer oaths or affinnations, take affidavits and depositions pertaining to the affairs and business of the City and certify copies of official records. (g) Be ex officio Assessor, unless the City Council, has availed itself, or does in the future avail itself, of the provisions of the general laws of the State relative to the assessment of property and the collection of City taxes by county officers, or unless the City Council by ordinance provides otherwise. -- (h) Have charge of all City elections. (1) Perform such other duties consistent with this Charter as may be required by ordinance or resolution of the City Council. 0) Assist and cooperate with the City Manager consistent with Section 403 of the City Charter. The City Clerk may, subject to the approval of the City Council, appoint such deputy or deputies to assist them or act for them, at such salaries or compensation as the Council may by ordinance or resolution prescribe. Section 311. CITY TREASURER. POWERS AND DUTIES. To become and remain eligible for City Treasurer, the person elected or appointed shall have a minimum of five years of financial and/or treasury experience and at least three years management experience, and have either a: Master's Degree in accounting, finance, business, or public administration; or Bachelor's Degree with certification by the California Municipal Treasurer's Association or their successor with three years of election or appointment. The City Treasurer shall have the power and shall be required to: (a) Receive on behalf of the City all taxes, assessments, license fees and other revenues of the City, or for the collection-of which the City is responsible, and receive all taxes or other money receivable by the City from the County, State or Federal govermnents, or from any court, or from any office, department or agency of the City. (b) Have and keep custody of all public funds belonging to or under control of the City or any office, department or agency of the City government and deposit or cause to be deposited all funds coming into their hands in such depository as may be designated by resolution of the City Council, or, if no such resolution be adopted, then in such depository designated in writing by the City Administrator Manager, and in compliance with all of the provisions of the State Constitution and laws of the State governing the handling, depositing and securing of public funds. (c) Pay out moneys only on proper orders or warrants in the manner provided for in this Charter. Proposed Revised City Charter C-4 jm/kc (d) Prepare and submit to the Director of Finance monthly written reports of all receipts, disbursements and fund balances, and shall file copies of such reports with the City Administrator Manager and City Council. (e) Perform such other duties consistent with this Charter as may be required by ordinance or resolution of the City Council. (f) Assist and cooperate with the City Manager consistent with Section 403 of the City Charter. The City Treasurer may, subject to the approval of the City Council, appoint such deputy or deputies to assist them or act for them. at such salaries or compensation as the Council may by ordinance or resolution prescribe. Section 312. VACANCIES, FORFEITURES AND REPLACEMENT. (a) Vacancies. A vacancy in the City Council or in any other office designated as elective by this Charter, from whatever cause arising, shall be filled by appointment by the City Council. (b) Forfeiture. If a member of the City Council is absent from all regular meetings of the City Council for a period of thirty consecutive days from and after the last regular City Council meeting attended by such member, unless by permission of the City Council expressed in its official minutes, the office shall become vacant. If an elected City officer pleads guilty or no contest to or is convicted of a felony or any crime of moral turpitude, or ceases to be an elector of the City, the office shall become vacant. The City Council shall declare the existence of such vacancy. Any elective officer of the City who shall accept or retain any other elective public office, except as provided in this Charter, shall be deemed thereby to have vacated the office under the City Government. (c) Replacement. In the event it shall fail to fill a vacancy by appointment within sixty days after such office shall become vacant, the City Council shall forthwith cause an election to be held to fill such vacancy for the remainder of the unexpired term. Section 313. CONFLICT OF INTEREST, NEPOTISM. (a) Conflict of Interest. The City Council shall adopt or approve rules and regulations regulating conflicts of interest and promoting fair dealing in all City business. (b) Nepotism. The City Council shall not appoint to a salaried position under the City government any person who.is a relative by blood or marriage within the third degree of any one or more of the members of such City Council, nor shall the City Manager or any department head or other officer having appointive power appoint any relative of such person or of any Council member within such degree to any such position. This provision shall not affect the employment or promotional status of a person who has attained a salaried position with the City prior to the existence of a situation contemplated by this provision; however, Council members or officers with appointive powers in such a situation shall disqualify themselves from all decisions affecting the employment and promotional status of such person. Proposed Revised City Charter C-]o jm/kc ARTICLE IV APPOINTIVE OFFICES AND PERSONNEL Section 400. CITY MANAGER. COMPOSITION,TERM, ELIGIBILITY,REMOVAL. (a) Composition. There shall be a City Manager who shall be the chief administrative officer of the City. (b) Term. The City Manager shall be appointed by the affirmative vote of at least a majority of the members of the City Council and shall serve at the pleasure of the City Council; provided, however, that the person occupying the office shall not be removed from office except as herein provided. (c) Eligibility. The City Manager shall be chosen on the basis of executive and administrative qualifications, with special reference to actual experience in and knowledge of accepted practice as regards the duties of the office as herein set forth. No person shall be eligible to be appointed City Manager or Acting City Manager while serving as a member of the City Council nor within one year following the termination of membership on the City Council. (d) Removal. The City Manager shall not be removed from office during or within a period of ninety days next succeeding any municipal election at which a member of the City Council is elected. At any other time the City Manager may be removed only at a regular meeting of the City Council and upon the affirmative vote of a majority of the members of the City Council. At least thirty days prior to the effective date of removal, the City Manager shall be furnished with a written notice stating the Council's intentions and, if requested by the City Manager, the reasons therefor. Within seven days after receipt of such notice, the City Manager may by written notification to the City Clerk request a public hearing before the City Council, in which event the Council shall fix a time for a public hearing which shall be held at its regular meeting place before the expiration of the thirty-day period above referred to. The City Manager shall appear and be heard at such hearing. After furnishing the City Manager with written notice of the intended removal, the City Council may suspend the City Manager from duty, but his compensation shall continue until removal as herein provided. In removing the City Manager, the City Council shall use its uncontrolled discretion and its action shall be final and shall not depend upon any particular showing or degree of proof at the hearing, the purpose of which is to allow the City Council and the City Manager to present to each other and to the public all pertinent facts prior to the final action of removal. Section 401._POWERS AND DUTIES. Except as otherwise provided in this Charter, the City Manager shall be responsible to the City Council for the proper administration of all affairs of the City.Without limiting this general grant of powers and responsibilities, the City Manager shall have the power and be required to: (a) Appoint, promote, demote, suspend or remove department heads, officers and employees of the City except elective officers. Proposed Revised City Charter- C-1 1 jm/kc (b) Prepare the budget annually, submit it to the City Council, and be responsible for its administration upon adoption. (c) Prepare and submit to the City Council as of the end of each fiscal year, a complete report on the finances of the City, and annually or more frequently, a current report of the principal administrative activities of the City. (d) Keep the City Council advised of the financial condition and future needs of the City and make such recommendations as may seem desirable. (e) Maintain a centralized purchasing system for all City offices, departments and agencies. (f) Prepare, administer and enforce rules and regulations recommended to and adopted by the City Council governing the contracting for,purchase, inspection, storage, inventory, distribution and disposal of all supplies, materials and equipment required by any office, department or agency of the City government. (g) Be responsible for the compliance by the City with the laws of the State pertaining to the City, the provisions of this Charter and the ordinances, franchises and rights of the City. (h) Subject to policy established by the City Council, exercise control of all administrative offices and departments of the City and of all appointive officers and employees except those directly appointed by the City Council and prescribe such general rules and regulations as he may deem necessary or proper for the general conduct of the administrative offices and departments of the City under his jurisdiction. (i) Perform such other duties consistent with this Charter as may be required by the City Council. Section 402. ACTING CITE' MANAGER. During any temporary ,absence or disability of the City Manager, the City Manager shall appoint one of the other officers or department heads of the City to serve as Acting City Manager. In the event the City Manager fails to make such appointment, such appointment may be made by the City Council. Section 403. PERSONNEL.. In addition to the City Council, a City Clerk, a City Treasurer, a City Attorney and City Manager, the officers and employees of the City shall consist of such other officers, assistants, deputies and employees as the City Council may provide by ordinance or resolution. The City Council shall establish such reasonable compensation and fringe benefits as are appropriate by ordinance or resolution for such offices, officials and employees except as herein provided. The City Council shall maintain by ordinance a comprehensive personnel system for the City. The City Manager and any officers designated as elective by the Charter shall be exempt. The system shall consist of the establishment of minimum standards of employment and qualifications for the various classes of employment and procedures to be followed in advancement, demotion, suspension and discharge of employees included within the system, as the City Council shall determine to be for the best interest of the public service. The ordinance shall designate the appointive officers and employees who shall be included within the system. By subsequent Proposed Revised City Charter C-12 jm/kc ordinances the City Council may amend the system or the list of appointive officers and employees included within the system. The system shall comply with all other provisions of this Charter. It shall be the duty of all department heads, whether appointed or elected, to assist and cooperate with the City Manager in administering the affairs of the City in the most efficient, fiscally responsible, and harmonious manner consistent with the duties as prescribed by law, City Charter, or by ordinance. Section 404. RETIREMENT SYSTEM. The City shall participate in a retirement system. Section 405. BOARDS, COMMISSIONS AND COMMITTEES. The City Council shall establish such boards, commissions and committees as are deemed necessary for the orderly functioning of the City. All such boards, commissions and committees shall report directly to the City Council. ARTICLE V ORDINANCES AND RESOLUTIONS Section 500. REGULAR ORDINANCES. ENACTMENT, ADOPTION, PUBLICATION, AMENDMENT,WHEN EFFECTIVE AND CODIFICATION. (a) Enactment. In addition to such other acts of the City Council as are required by this Charter to be taken by ordinance, every act of the City Council establishing a fine or other penalty, or granting a franchise, shall be by ordinance. The enacting clause of all ordinances shall be substantially as follows: "The City Council of the City of Huntington Beach does ordain as follows:." No order for the payment of money shall be adopted or made at other than a regular or adjourned regular meeting. Upon introduction, an ordinance shall be read by title only. Unless a higher vote is required by other provisions of this Charter, the affirmative vote of at least four of the City Council shall be required for the enactment of any ordinance or for the making or approving of any order for the payment of money. All ordinances shall be signed by the Mayor and attested by the City Clerk. (b) Adoption. A regular ordinance shall be adopted only at a regular or adjourned regular meeting held no less than five days after its introduction. In the event that any ordinance is altered after its introduction, it shall be finally adopted only at a regular or adjourned regular meeting held no less than five days after the date it was so altered. The correction of typographical or clerical errors shall not constitute the making of an alteration within the meaning of the foregoing sentence. (c) Publication. The City Clerk shall cause each ordinance to be posted in three places designated by the City Council within the City and to be published by title with brief summary at least once within fifteen days after its adoption in a daily, semiweekly or weekly newspaper, published in the County or the City and circulated in the City, which is selected by the City Council for that purpose. City council shall, by resolution, adopt rules to ensure thorough and timely dissemination of information,using current technology. Proposed Revised City Charter C-1 3 jn1,/kc (d) Amendment. The amendment of any section or subsection of an ordinance may be accomplished solely by the re-enactment of such section or subsection at length, as amended. (e) When Effective. Every ordinance shall become effective thirty days from and after the date of its adoption, except the following,which shall take effect upon adoption: (1) An ordinance calling or otherwise relating to an election; (2) An improvement proceeding ordinance adopted under some special law or procedural ordinance relating thereto; (3) An ordinance declaring the amount of money necessary to be raised by taxation, or fixing the rate of property taxation, or levying the annual tax upon property. (4) An emergency ordinance adopted in the manner provided in this Charter. (f) Codification. Detailed regulations pertaining to any subject and comprehensive codifications of valid ordinances may be adopted by reference, with the same effect as an ordinance, in the manner set forth herein; however, such regulations and codifications need not be published in the manner required for other ordinances, but not less than three copies thereof shall be filed for use and examination by the public in the office of the City Clerk prior to adoption. Ordinances codified shall be repealed as of the effective date of the codification. Amendments to the code shall be enacted by ordinance. Section 501. EMERGENCY ORDINANCES. Any ordinance declared by the City Council to be necessary as an emergency measure for the immediate preservation of the public peace, health, or safety, and containing a statement of the reasons for its urgency, may be adopted in the manner provided in Section 500 except that such emergency ordinance may be introduced, enacted and adopted at one and the same regular or special meeting and shall take effect immediately upon adoption if passed by at least five affirmative votes. An emergency ordinance shall repeal automatically after 120 days. Section 502. RESOLUTIONS. The City Council may act by resolution or minute order in all actions not required by this Charter to be taken by ordinance. Section 503. PUBLISHING OF LEGAL NOTICES. The City Council shall cause to be published all legal notices and other matters required to be published by law in a daily, semiweekly or weekly newspaper published in the County or the City and circulated in the City which is selected by the City Council for that purpose and using current technology.No defect or irregularity in. proceedings taken under this section shall invalidate any publication where it is otherwise in conformity with this Charter or law or ordinance. ARTICLE VI FISCAL ADMINISTRATION Section 600. FISCAL YEAR. The fiscal year of the City shall be as set forth by resolution of the City Council. Proposed Revised City Charter C-14 Jm/kc Section 601. ANNUAL BUDGET, PREPARATION BY THE CITY MANAGER. At such date as the City Manager shall determine, each board or commission and each department head shall furnish to the City Manager, personally, or through the Director of Finance, estimates of the department's, board's or commission's revenue and expenditures for the ensuing fiscal year, detailed in such manner as may be prescribed by the City Manager. In preparing the proposed budget, the City Manager shall review the estimates, hold conferences thereon with the respective department- - heads, boards or commissions as necessary, and may revise the estimates as may be deemed advisable. Section 602. ANNUAL BUDGET. SUBMISSION TO THE CITY COUNCIL. The City Manager shall submit the proposed budget to the City Council at least thirty days prior to the beginning of each fiscal year. After reviewing the proposed budget and making such revisions as it may deem advisable, the City Council shall hold a public hearing thereon at least fifteen days prior to the beginning of each fiscal year and shall cause to be published a notice thereof not less than ten days prior to said hearing. Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least ten days prior to said hearing. Section 603. ANNUAL BUDGET. PUBLIC HEARING. At the time so advertised or at any time to which such public hearing shall from time to time be adjourned, the City Council shall hold a public hearing on the proposed budget, at which interested persons desiring to be heard shall be given such opportunity. Section 604. ANNUAL BUDGET. FURTHER CONSIDERATION AND ADOPTION. At the conclusion of the public hearing the City Council shall further consider the proposed budget and make any revisions thereof that it may deem advisable and on or before the last day of the fiscal year it shall adopt the budget with revisions, if any, by the affirmative vote of at least a majority of the total members of the Council. Upon final adoption, the budget shall be in effect for the ensuing fiscal year. Copies thereof, certified by the City Clerk, shall be filed with the City Manager, Director of Finance, City Treasurer and the person retained by the City Council to perform the post audit function, and a further copy shall be placed, and shall remain on file in the office of the City Clerk where it shall be available for public inspection. The budget so certified shall be reproduced and copies made available for the use of the public and of departments, offices and agencies of the City. Section 605. ANNUAL BUDGET APPROPRIATIONS. From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several departments, offices and agencies for the respective objects and purposes therein named; provided, however, that the City Manager may transfer funds from one object or purpose to another within the same department, office or agency. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered. At any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative vote of at least a majority of the total members of the City Council. Section 606. DETERMINATION OF CITY TAX RATE. The City Council shall prescribe by ordinance for the assessment, levy and collection of taxes upon property which is taxable for Proposed Revised City Charter C-15 jm/kc municipal purposes. If the City Council fails to fix the rate and levy taxes on or before August 31 in any year, the rate for the next preceding fiscal year shall thereupon be automatically adopted and a tax at such rate shall be deemed to have been levied on all taxable property in the City for the current fiscal year. Section 607. TAX LIMITS. (a) The City Council shall not levy a property tax for municipal purposes in excess of One Dollar annually on each One Hundred Dollars of the assessed value of taxable property in the City, except as otherwise provided in this section, unless authorized by the affirmative vote of a majority of the electors voting on a proposition to increase such levy at any election at which the question of such additional levy for municipal purposes is submitted to the electors. The number of years that such additional levy is to be made shall be specified in such proposition. (b) There shall be levied and collected at the same time and in the same manner as other property taxes for municipal purposes are levied and collected, as additional taxes not subject to the above limitation, if no other provision for payment thereof is made: l. A tax sufficient to meet all liabilities of the City of principal and interest of all bonds and judgments due and unpaid, or to become due during the ensuing fiscal year, which constitute general obligations of the City; and 2. A tax sufficient to meet all obligations of City for the retirement system in which the City participates, due and unpaid or to become due during the ensuing fiscal year. (c) Special levies, in addition to the above and not subject to the above limitation, may be made annually, based on City Council approved estimates, for the following specific purposes, but not to exceed the following respective limits for those purposes for which limits are herein set forth, to wit: parks and recreation and human services not to exceed $0.20 per One Hundred Dollars; Libraries not to exceed $0.15 per One Hundred Dollars; promotional interests and cultural affairs not to exceed $0.07 per One Hundred Dollars; and civil defense and disaster preparedness not to exceed $0.03 per One Hundred Dollars. The proceeds of any special levy shall be used for no other purpose than that specified. Section 608. VOTE REQUIRED FOR TAX MEASURES. No tax, property tax, or other measure whose principal purpose is the raising of revenue, or any increase in the amount thereof, shall be levied, enacted or established except by ordinance adopted by the affirmative vote of at least five (5) members of the City Council; provided, however, that any tax levied or collected pursuant to Section 607(b) of this Charter shall be exempt from the minimum voting requirement of this section. This section shall not apply to any license, permit, or any other fee or charge whose principal purpose is to pay or reimburse the City for the cost of performing any regulatory function of the City under its police power in connection with the City's duty to preserve or maintain the public peace, health, safety and welfare. Proposed Revised City Charter C-16 jm/kc This section shall not apply to any user or service fee or charge provided such fee or charge is directly related to such use or service, is charged to the user or person receiving such service, and is to pay or reimburse the City for the costs of providing such use or service. This section shall not apply to any fee or charge relating to any franchise or proprietary function of the City. Section 609. REAL ESTATE TRANSFER TAX. The City Council shall not levy a tax on the transfer or conveyance of any interest in real property unless authorized by the affirmative vote of a majority of the electors voting on a proposition submitted to the electors to authorize such tax at a general or special election. Section 610. BONDED DEBT LIMIT. The City shall not incur an indebtedness evidenced by general obligation bonds which shall in the aggregate exceed the sum of 12 percent of the total assessed valuation, for purposes of City taxation, of all the real and personal property within the City. No bonded indebtedness which shall constitute a general obligation of the City may be created unless authorized by the affirmative vote of the majority required by law of the electors voting on such proposition at any election at which the question is submitted to the electors. Section 611. REVENUE BONDS. Bonds which are payable only out of such revenues, other than taxes, as may be specified in such bonds, may be issued when the City Council by ordinance shall have established a procedure for the issuance of such bonds. Such bonds, payable only out of revenues, shall not constitute an indebtedness or general obligation of the City. No such bonds payable out of revenues shall be issued without the assent of the majority of the voters voting upon the proposition for issuing the same at an election at which such proposition shall have been duly submitted to the registered voters of the City. It shall be competent for the City to make contracts and covenants for the benefit of the holders of any such bonds payable only from revenues and which shall not constitute a general obligation of the City for the establishment of a fund or funds, for the maintaining of adequate rates or charges, for restrictions upon further indebtedness payable out of the same fund or revenues, for restrictions upon transfer out of such fund, and other appropriate covenants. Money placed in any such special fund for the payment of principal and/or interest on any issue of such bonds or to assure the application thereof to a specific purpose shall not be expended for any other purpose whatever except for the purpose for which such special funds were established and shall be deemed segregated from all other funds of the City and reserved exclusively for the purpose for which such special fund was established until the purpose of its establishment shall have been fully accomplished. Section 612.PUBLIC UTILITIES AND PARKS AND BEACHES. (a) No public utility or park or beach or portion thereof now or hereafter owned or operated by the City shall be sold, leased, exchanged or otherwise transferred or disposed of unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted. Proposed Revised City Charter G 17 jm/kc (b) No golf course, driving range, road, building over three thousand square feet in floor area nor structure costing more than $161,000.00 may be built on or in any park or beach or portion thereof now or hereafter owned or operated by the City unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted.after the appropriate enviromnentat assessment, -- conceptual cost estimate, and reasonable project description has been completed and widely disseminated to the public. Effective January 1, 2011, and each year thereafter, the maximum cost will be adjusted by the Consumer Price Index for the Los Angeles-Riverside-Orange County area. (c) Section 612(a) and 612(b) shall not apply; (1) to libraries or piers; (2) to any lease, franchise, concession agreement or other contract where; - the contract is to perform an act or provide a service in a public park or beach AND - such act was being performed or service provided at the same location prior to January 1, 1989 AND - the proposed lease, franchise, concession agreement or other contract would not increase the amount of parkland or beach dedicated to or used by the party performing such act or providing such service. (3) to above ground public works utility structures under 3,000 square feet; (4) to public works utility underground structures if park or beach use is not impeded; (5) to any public works construction, maintenance or repair mandated by state or federal law that does not negatively impact recreational opportunities; or (6) to renewable energy projects that do not negatively impact recreational opportunities. (d) If any section, subsection, part, subpart, paragraph, clause or phrase of this amendment, or any amendment or revision of this amendment, is for any reason held to be invalid or unconstitutional, the remaining sections, subsections, parts, subparts, paragraphs, clauses or phrases shall not be affected but shall remain in full force and effect. (12/7/90) Section 613. EXECUTION OF CONTRACTS. Except as hereinafter provided, the City shall be bound by a contract only if it is made in writing, approved by the City Council and signed on behalf of the City by the Mayor and City Clerk or by a City officer designated by the City Council and only upon the direction of the City Council. Exceptions to this procedure are as follows: (a) By ordinance or resolution the City Council may authorize the City Manager or other officer to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services or other items included within the budget approved by the City Council, and may impose a monetary limit upon such authority. Proposed Revised City Charter C-18 Jm/kc (b) By ordinance or resolution, the City Council may provide a method for the sale or exchange of personal property not needed in the City service or not fit for the purpose for which intended, and for the conveyance of title thereto. (c) Contracts for the sale of the products, commodities or services of any public utility owned, controlled or operated by the City may be made by the manager of such utility or by the head of the department or City Manager upon forins approved by the City Manager and at rates fixed by the City Council. Section 614. CONTRACTS ON PUBLIC WORKS. Except as hereinafter expressly provided, every contract involving an expenditure as set forth by ordinance of the City Council for the construction or improvement (excluding maintenance and repair) of public buildings,works, streets, drains, sewers, utilities, parks and playgrounds, and each separate purchase of materials or supplies for the same, where the expenditure required for such purchase shall exceed the amount. set by ordinance, shall be let to the lowest responsible bidder after notice by publication in accordance with Section 503 by two or more insertions, the first of which shall be at least ten days before the time for opening bids. The City Council may reject any and all bids presented and may readvertise in its discretion. After rejecting bids, or if no bids are received, or without advertising for bids if the total amount of the contract or project is below the amount set by ordinance, the City Council may declare and determine that in its opinion, the work in question may be performed better or more economically by the City with its own employees, or that the materials or supplies may be purchased at lower price in the open market, and after the adoption of a resolution to this effect by the affirmative vote of a majority of the total members of the City Council, it may proceed to have said work done or such materials or supplies purchased in the manner stated without further observance of the provisions of this section. All public works contracts exceeding the amount set by ordinance may be let and purchases exceeding the amount set by ordinance may be made without advertising for bids if such work or the purchase of such materials or supplies shall be deemed by the City Council to be of urgent necessity for the preservation of life, health, or property and shall be authorized by at least five affirmative votes of the City Council. Projects for the extension, replacement or expansion of the transmission or distribution system of any existing public utility operated by the City or for the purchase of supplies or equipment for any such project or any such utility may be excepted from the requirements of this section by the affirmative vote of a majority of the total members of the City Council. Section 615. GRANTING OF FRANCHISES. The City Council shall by ordinance regulate the granting of franchises for the City. Section 616. INDEPENDENT AUDIT. The City Council shall provide for an independent annual audit of all City accounts and may provide for such more frequent audits as it deems necessary. Such audits shall be made by a certified public accountant or firm of such accountants who have no personal interest, direct or indirect, in the fiscal affairs of the City government or any of its officers. The Council may, without requiring competitive bids, designate such accountant or firm annually provided that the designation for any particular fiscal year shall be made no later than thirty days Proposed Revised City Charter C-19 Jm/kc after the beginning of such fiscal year. As soon as practicable after the end of the fiscal year, a final audit and report shall be submitted by such accountant to the City Council, one copy thereof to be distributed to each member. Additional copies of the audit shall be placed on file in the office of the City Clerk where they shall be available for inspection by the general public, and a copy of the financial statement as of the close of the fiscal year shall be published in the official newspaper. -- Section 617. INFRASTRUCTURE FUND. (a) All revenue raised by vote of the electors or imposed by vote of the City Council on or after March 5, 2002, by a measure which states that the revenue to be raised is for the purpose of infrastructure, as said term is defined in this paragraph, shall be placed in a separate fund entitled "Infrastructure Fund." The term "Infrastructure" shall mean long-lived capital assets that normally are stationary in nature and normally can be preserved for significantly greater number of years. They include storin drains, storm water pump stations, alleys, streets, highways, curbs and gutters, sidewalks, bridges, street trees, landscaped medians, parks, beach facilities, playgrounds, traffic signals, streetlights, block walls along arterial highways, and all public buildings and public ways. Interest earned on monies in the Infrastructure Fund shall accrue to that account. Monies in said Fund shall be utilized only for direct costs relating to infrastructure improvements or maintenance, including construction, design, engineering, project management, inspection, contract administration and property acquisition. Monies in said Fund shall not be transferred, loaned or otherwise encumbered for any other purpose. (b) Revenues placed in the Infrastructure Fund shall not supplant existing infrastructure funding. The average percentage of general fund revenues utilized for infrastructure improvements and maintenance, for the five- (5) year period of 1996 to 2001, is and was 14.95%. Upon adoption of the 2015/2016 budget, expenditures for infrastructure improvements and maintenance, excluding debt service, shall not be reduced below 15% of general fund revenues based on a five- (5) year rolling average. (c) The City Council shall by ordinance establish a Citizens Infrastructure Advisory Board with the sole responsibility to conduct an annual review and perfonnance audit of the Infrastructure Fund and infrastructure expenditures and which shall present a report of its findings to the City Council at a noticed public hearing prior to adoption of the following fiscal-year budget. ARTICLE VII ELECTIONS Section 700. GENERAL MUNICIPAL ELECTIONS. General municipal elections shall be held in the city on the first Tuesday after the first Monday in November in each even-numbered year. (r 2/9/82) Section 701. SPECIAL MUNICIPAL ELECTIONS. All other municipal elections that may be held by authority of this Charter, or of any law, shall be known as special municipal elections. Section 702. PROCEDURE FOR HOLDING ELECTIONS. All elections shall be held in accordance with the provisions of the Elections Code of the State of California, as the same now Proposed Revised City Charter C-20 jm/kc exists or hereafter may be amended, for the holding of municipal elections, so far as the same are not in conflict with this Charter. Section 703. INITIATIVE, REFERENDUM AND RECALL. There are hereby reserved to the electors of the City the powers of the initiative and referendum and of the recall of municipal elective officers. The provisions of the Elections Code of the State of California, as the same now exists or hereafter may be amended, governing the initiative and referendum and the recall_of municipal officers, shall apply to the use thereof in the City so far as such provisions of the Elections Code are not in conflict with the provisions of this Charter. Section 704. NOMINATION PAPERS. Nomination papers for candidates for elective municipal office must be signed by not less than twenty nor more than thirty electors of the City. ARTICLE VIII MISCELLANEOUS Section 800. TRANSITION. Elective officers and elective officers whose offices are made appointive of the City shall continue to hold such offices until the completion of their current terms and the election or appointment and qualification of their respective successors under this Charter. All boards, commissions and committees presently in existence shall continue to act in accordance with their original grant of authority until such time as the City Council adopts appropriate ordinances pertaining to their activities or for one year, whichever occurs first. All lawful ordinances, resolutions, rules and regulations, and portions thereof, in force at the time this Charter takes effect and not in conflict or inconsistent herewith, are hereby continued in force until the same shall have been duly repealed, amended, changed or superseded by proper authority. Section 801. DEFINITIONS. Unless the provisions or the context otherwise requires, as used in this Charter: (a) "Shall" is mandatory, and "may" is permissive. (b) "City" is the City of Huntington Beach and "department," "board," "commission," "agency," "officer," or "employee" is a department, board, commission, agency, officer or employee, as the case may be, of the City of Huntington Beach. (c) "County" is the County of Orange. (d) "State" is the State of California. (e) The masculine includes the feminine and the feminine includes the masculine. (f) The singular includes the plural and the plural the singular. (g) "Person" includes firm and corporation. Section 802. VIOLATIONS. The violation of any provision of this Charter shall be a misdemeanor. Proposed Revised City Charter C-21 jm/kc Section 803. PROPERTY RIGHTS PROTECTION MEASURE. (a) The City shall not enact or enforce any measure which mandates the price or other consideration payable to the owner in connection with the sale, lease, rent, exchange or other transfer by the owner of real property. Any such measure is hereby repealed. (b) The word "mandates" as used in subsection (a) includes any measure taken by ordinance, resolution, administrative regulation or other action of the City to establish, continue, implement or enforce any control or system of controls on the price or other terms on which real property in the city may be offered, sold, leased, rented, exchanged or otherwise transferred by its owner. The words "real property" as used in subsection (a) refer to any parcel of land or site, either unproved or unimproved, on which a dwelling unit or residential accommodation is or may be situated for use as a home, residence or sleeping place. (c) This Section 803 shall not apply to: (1) any real property which contains serious health, safety, fire or building code violations, excluding those caused by disasters, for which a civil or criminal citation has been issued by the City and remains unabated for six months or longer; (2) any real property owned by a public entity, and real property where the owner has agreed by contract with the public entity, including the City and any of its related agencies, to accept a financial contribution or other tangible benefit including without limitation, assistance under the Community Redevelopment Law; (3)any planning or zoning power of the City as relates to the use, occupancy or improvement of real property and to any real property which the City or any of its related agencies may acquire by eminent domain,purchase, grant or donation; (4) any power of the City to require a business license for the sale or rental of real property, whether for regulation or general revenue purposes; (5) any dwelling unit or accommodation in any hotel, motel or other facility when the transient occupancy of that dwelling unit or accommodation is subject to a transient occupancy tax; or (6) to impair the obligation of any contract entered into prior to the enactment of this Section 803 or otherwise required by State law. Section 804. CHARTER REVIEW. The City Council shall convene a citizen's Charter Review Commission to conduct a review of the City Charter no less frequently than every ten years. Pro-posed Revised City Charter C-22 jm/kc �� � . � .. .. _�; 4:: ��. � , R, BAM E We, the City of Huntington Beach, California, being a "Charter City," do hereby exercise the privilege of retaining for ourselves, through the enactment of this Charter, the benefits of local government, by enacting the laws, rules, regulations and procedures set forth herein pertaining to the governance and operation of our City.. It is incumbent upon those who govern and make decisions for and on behalf of the City of Huntington Beach to legally, as well as morally, abide by the provisions of this Charter, in its strictest sense, to assure the continued success and well-being of our fair City. BRENDEN We, the people of the City of Huntington Beach, in order to promote an inclusive and culturally diverse community characterized by a shared commitment to economic prosperity, environmental stewardship, and equal civil and political rights for all, governed by responsible and responsive public officials dedicated to protecting public assets, ensuring public safety and promoting citizen participation in the community and local government, do hereby enact this Charter pursuant to the rights granted our city by the Constitution of the United States and the statutes of the State of California. SILVER We, the people of the City of Huntington Beach believe in promoting an inclusive community with shared economic, environmental and cultural prosperity, equal civil and political rights, social harmony and cohesion, and opportunities for all governed by responsible and responsive public officials who promote citizen participation, as well as just and equitable tax and financial policies; and these beliefs are rooted in our desire to enhance the uniqueness of the City of Huntington Beach. We, the people of the City of Huntington Beach, to obtain and retain for ourselves the benefits of local government, do hereby exercise the express right granted by the Constitution,and the statutes of the State of California and enact this Charter for the City of Huntington Beach. AGENDA Tuesday., March 1 , 2010, 6:00 PM City Hall, - 1. Roll Cali: Jerry Bame, Ralph Bauer, Mark Bixby, Patrick Brenden. Shirley Dettloff. Dick Harlow, Gregory Hartnett, Marijo Johnsen, Gary Kutscher, Joe Shaw, Ray Silver, harie Sneddori. Tim Stuart, Dave Sullivan, Shane Whiteside 11. Public Comments: An opportunity for the public to comment on any item of interest, either in general or specific to this agenda, that is within the subject matter or jurisdiction of the Commission. Comments will be limited to no more than 3 minutes. Speakers are encouraged to submit their comments in °Ywi tin g. Each Commission Member will receive a copy of all the submitted comments. Ill. Approval of the Commission minutes from the March 2 meeting. IV. Review and Amend Section 311: City Treasurer Powers and Duties Recommended Action: Amend the Charter Section 311 to change the qualifications for City Treasurer to include the following: To become and remain eligible for City Treasurer, the person elected or appointed shall have a master's degree in accounting. finance, business or public administration; or have a bachelor's degree and certification as a Certified Public Accountant (CPA) or a Certified Treasury Professional (CTP) and a minimum of five (5) years of financial and treasury experience with three (3)years of management experience. V. Continue review of and votes on each section of the Proposed City Charter Amendments. beginning at Charter Section 311 V1. Discuss and take action on the wording for a prq@_mble to_the City Charter- Sonenshein VII. Discuss and take action on Non-Charter Recommendations to the City Council. Vill. Commissioner's Requests: Questions, comments, or suggestions for discussion at a subsequent meeting of the Commission I . Adjournment: Commission to determine whether to schedule an additional meeting date. Attachments: 1. Minutes from the March 2 Commission Meeting 2. Earlier Memos from the City Treasurer and City Clerk regarding qualifications for their office. 3. Updated Legislative Draft of Proposed Charter Amendments 4. Examples of other city's charter preambles 5. List of Non-Charter Recommendation to the City Council 6. Memo from Joan Flynn, City Clerk, regarding the calendar and cost for the November ballot Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. p, a. T�AT� CH F _ r r S .. ... .. .. .... .. ACTION MINUTES Tuesday., March 2 2010, 6:00 P 1. Poll Call; Jerry Same, Ralph Bauer, Mark Bixb , Patrick Brenden, Shirley Dettloff, Dick Harlow, Gregory Hartnett; Mario Johnson, Gary lutscher, Joe Shaw, Ray Silver, Sharie Sneddon, Tim Stuart, Dave Sullivan, Shane Whiteside All present except Sneddon. It. Public Comments: An opportunity for the public to comment on any item of interest, either in general or specific to this agenda, that is within the subject matter or jurisdiction, of the Commission. Comments will be limited to no more than 3 minutes. Speakers are encourage 'to submit their comments in wting ri Each Commission Member will receive a coDv of all the submitted comments, • Mary Urashima spoke in support of language to assure that 15%of the General Fund will be spent on infrastructure. • Blair Farley spoke to the Commission about their recommendations in general. Ill. Approval of the Commission minutes from February 18`meeting. Commissioner Bixby Corrected the minutes from 2118 noting that Commissioner Dettloff had. abstained on the vote on Section 703."Commissioner Dettloff concurred. A motion was made by Commission Stuart and seconded by Commissioner Whiteside to approve the minutes as amended. The motion carried 14-0-1 IV. Charter Section 61 T Infrastructure Public Works Commission Chair, Michael Siersema, spoke in favor of adding language to the Charter Section 617 as follows: (c)The City Council shall by ordinance establish a'`Citizens Infrastructure Advisory Board to conduct an annual review and performance audit of the Infrastructure Fund and infrastructure expenditures and report its findings to the City Council prior to adoption of the following'fiscal-year budget. He also asked that"the Commission recommend to the Council that they add this new Charter language"and infrastructure expenditures"to Municipal Code Section 2.111.030 (i) and add a new subsection (ii) as follows: (ii) conduct a.semi-annual review and performance audit of compliance with Section 617 Infrastructure Fund(b)of the City Charter'and report its findings to the City Council prior to the City Council's adoption of the ensuing fiscal year budget. • Review of the City ttorney's legal opinion on the use of the 15% Infrastructure set aside.. , • Discussion can potential amendments A motion was made by Commissioner Shaw with a second by Commissioner Kutscher to amend Charter Section 617(b) to add language exclude debt service from the 15% Infrastructure Fund. After some discussion the motion was amended to the following: Amend Charter Section 617(b) by adding language to exclude debt service from the 15% Infrastructure Fund phasing it out over four years beginning with the 201112012 budget and by reducing the portion of the infrastructure fund going to debt service by 25%of the base year(2011) each year with 0% of the * Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. Charter Review Minutes-02/18/10 Page 2 Infrastructure Fund going to debt service by the 2015116 budget. The motion carried 8-6-1 (Sullivan, Bixby, Dettloff, Shaw, Johnson, and Brenden-NO) A motion was made by Commissioner Dettloff and second by Commissioner Bixby to forward to the City Council a recommendation that the language requested by the Public Works Commission be added to Section2.111.030 of the Municipal Code as follows: MC 2.111.030 (i) conduct an annual review and performance audit of the Infrastructure Fund and infrastructure expenditures, and report its finding to the City Council prior to the City Council's adoption of the ensuing fiscal year budget. (ii) "conduct a semi-annual review and performance audit of compliance with Section 617(b)- Infrastructure Fund of the City Charter and report its findings to the.City Council prior to the City Council's adoption of the ensuing fiscal year budget. The motion carried 14-0-1 V. Charter Section 612- Staff Presentation and request on a proposed additional amendment to Charter Section 62 (c) to state that Section 61 (a) and 612 ( ) shall not apply: "t renewable energy projects that do not impact open space."_Aaron Klemm A motion was made by Commissioner Whiteside, seconded by Commissioner Stuart to include an exemption under Charter Section 612(c) as follows, .Section 612(a) and 612(b) shall not apply ito renewable energy proiects that do not impact open space The motion carried 7-6-2(Harlow, Shaw, Harnett, Bame, Brenden, Kutscher=.NO;Silver abstained) ® Recommendation y Commissioner Bixby to,amend Huntington Beach Charter Section 612 to.add..new puBlic'vote,tri.gger to the list in section 612(a)when entering into any form of areerr>eritwich results in reduced public recreational opportunities. A motion was made by Commissioner Bixby to add the above to Charter Section 612(a) and seconded by Commissioner Shaw. The motion failed 2-10-2(Bixby, Shaw Ayes;Sullivan abstained) Vl. Review of the City Charter as a whole with legislative draft notation of changes recommended`ttius,far by:a straw vote of the Charter Review Commission- McGrath - onenshein Under Charter Section 300,;Commissioner Sullivan made a motion, seconded by Commissioner Bixby to leave-the structure as is, without directly electing the Mayor. Following discussion the motion carried 8-6-1 (Dettloff, Johnson, Hartnett, Bame, Stuart, Kutscher-NO) Under Charter Section 306 Commissioner Sullivan made a motion, seconded by Commissioner Dettloff, to amend new Charter Section 306(b)3 as follows: Any City Council Member who has served as Mayor within the last five years will not be eligible for election as Mayor Pro Tempore. The motion carried 14-0-1 Under Charter Section 309 -Following some discussion about the added qualifications Commissioner Bauer made a motion, seconded by Commissioner Dettloff, to leave the amendments as submitted in the draft. His motion was failed 2-12-1 (Bauer, Dettloff-Ayes). Charter Review Minutes-02/18/10 Page 2 Following further discussion a motion was made by Commissioner Brenden; seconded by Commissioner Shaw to remove the following language from the end of the first paragraph in Section 309: And have at least three years administrative level experience coordinating and supervising the daily operations of an office. The motion carried 10-4-1 (Dettloff, Kutscher, Stuart, & Bauer-NO) Commissioner Stuart made a motion;seconded by Commissioner Sullivan to amend the wording in Charter Section 309U) as follows: Assist and cooperate with the City Manager in administering the affairs of the city in the most efficient, fiscally responsible, and harmonious manner consistent with the duties as prescribed by law, the City Charter, and by ordinance. The motion carried 14-0-1 (Sections 310(]) and 310(o are to be amended to the same wording in 309 U) (above).] Under Charter Section 310 a motion was made by Commissioner Bauer to accept the language as submitted in the draft. The motion failed due to lack of a second. Commissioner Bame made a motion; seconded by Commission Brenden to amend the draft language to remove the following language from the end of the first paragraph: at least three years administrative level experience coordinating and supervision the daily operations of an office, The motion carried 11-3- 1 (Bauer, Stuart, Dettloff- NO) (Note: Commissioner Bixby noted a language update changing the word "Books"to the word "Records"in Section 310 a, b, & d.) Under Charter Section 311 Commissioner Silver made a motion, seconded by Commissioner Brenden for the Chair and Vice.Chair to meet with the City Treasurer to discuss the qualification for the City Treasurer: A substitute motion was made by Commissioner Stuart;seconded by Commissioner Bauer for the Chair and Vice Chair;to meet with all three elected department heads to discuss qualifications for their respective officer,The motion failed, 3-11-1(Stuart, Kutscher& Bauer- Aye) The original motion above carried 14-0-1. Adjourn to the next regular meeting scheduled for Tuesday Mar 16 at 6 PM in City Hall Room,S 8 Attachments, 1. Minutes frotnthe February 18 meeting 2. Staff report Qn th proposed new exemption to Charter Section 612 . Commissioner Biby's Recommendation for an amendment to Charter Section 612 . Memo from the Public forks Commission dated 2/25/10 with recommendations for amending Charter Section 617. 5. Material on prevailing wage from Commissioner Silver. r x � - R CITE' OF HUNTINGTON BEACH � . V INTERDEPARTMENTAL COMMUNICATION ' OFFICE OF THE CITY T.RFAS JRER. TO: Charter Commission Members CC: Fred Wilson, City Administrator FROM: Shari L Freidenrich, CPA, City`I'reasur DATE: December 15,2009 SUBJECT: CITY TREASURER QUALIFICATIONS ATIONS I have been working with Administration on the qualifications for City Treasurer and any recommendation, which is dust slightly different from Administration*s recommendation. is as fellows: Current Charter: The minimum qualifications for the position of City Treasurer shall be a combination of education and experience in an area relative to fiscal management. (Charter Amendment 12f7184) Proposed Charter changes: The minimum qualifications for the position of City Treasurer shall be a master's degree in accounting, finance, business or public administration. A minimum of five(5) years of financial and treasury experience with three (8)years of supervisory experience required,preferably a Certified Public Accountant(CPA), A bachelor's degree and certification as a CPA or a bachelor's degree and either of the following certifications (which are to be attained within two(2)years of election)may substitute for the master's degree requirement. • Certified California Municipal Treasurer(CCMT) • Certified Professional Finance Officer(CPFO) • Certified Public Funds Investment Manager(CPFIM) • Certified Government Financial Manager(CGFM) City of Huntington Reach 2000 Main Street - Huntington Beach, CA 92648 =� OFFICE OF THE `1" CLERK JOAN L. FLYNN ITT CLERK November 24, 2009 . Charter Review Commission c/o Pat Da kus, Legislative Analyst 2000 Main Street Huntington Beach, Cat 92648 Dear Commissioners- As you review qualifications for the office of the City Clerk, I would like to provide feedback. As i mentioned earlier,3 serve as the President of the Southern California City Clerks Association, and sit on the California City Clerks Association Board of Directors. I interact with hundreds of clerks over the course of a year. I am deeply involved in the education and professional standings discussions for the accreditation of the industry. I feet this exposure to the varying levels that a city clerk can fulfill in an agency affords me a unique perspective. Unlike many in the state,the Huntington Beach City Clerk functions on the Department Head level and, as such, has oversight of a departmental budget, staff, and provides adherence to management and legislative policies and procedures. He/:.she also creates department direction, and is an Executive Team member who provides input on agency-vide issues when participating on committees or in workshops. Currently, the Clerk is the only City management executive position that does not require advanced education or a college degree. As for the other two elected executives, per the Charter, the City.Attorney must have a law degree, and the City Treasurer must have education and experience in an area relative to fiscal manage►nent. It is nay opinion that it would be consistent to require at feast a Bachelor°s degree in a business-related field, with management experience, for the City Clerk. Sincerely, .loan'° . Flynn,CMC, l'+/I Ci 1� lerk Sister Cities: Anjo, Japan Waitakcere, Nekv Zealand (T phon€-,71 -s - 7) ATTACHMENT #3 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS S4ik Draft Charter Language - March 5, 2010 ARTICLE I INCORPORATION AND POWERS OF THE CITY Section 100. NAME. The municipal corporation now existing and known as the City of Huntington Beach shall remain and continue to exist as a municipal corporation under its present name of"City of Huntington Beach." Section 101. SEAL. The City shall have an official seal which may be changed from time to time by ordinance. The present official seal shall continue to be the official seal of the City until changed in the manner stated. Section 102. BOUNDARIES. The boundaries of the City shall continue as now established until changed in the manner authorized by law. Section 103. POWERS OF CITY. The City shall have the power to make and enforce all laws and regulations in respect to municipal affairs, subject only to such restrictions and limitations as may be provided in this Charter or in the Constitution of the State of California. Section 104. CONSTRUCTION. The general grant of power to the City under this Charter shall be construed broadly in favor of the City. The specific provisions enumerated in this Charter are intended to be and shall be interpreted as limitations upon the general grant of power and shall be construed narrowly. If any provisions of this Charter, or the application thereof to any person or circumstance is held invalid, the remainder of the Charter and the application of such provision to other persons or circumstances, shall not be affected thereby. Section 105. INTERGOVERNMENTAL RELATIONS. The City may exercise any of its powers or perform any of its functions and may participate in the financing thereof, jointly or in cooperation, by contract or otherwise, with any one or more states or civil divisions or agencies thereof, or the United States or any agency thereof. ARTICLE 1I FORM OF GOVERNMENT Section 200. COUNCIL- MANAGER FORM OF GOVERNMENT. The municipal government provided by this Charter shall be known as the Council "a...;r:stmatef Manager forin of government. Proposed Charter Revisions 03-05-10 1 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS Slit ;i Draft Charter Language - March 5, 2010 ARTICLE III ELECTIVE OFFICES Section 300. CITY COUNCIL, ATTORNEY, CLERK AND TREASURER. TERMS. The elective officers of the City shall consist of a City Council of seven members, a City Clerk, a City Treasurer and a City Attorney, all to be elected from the City at large at the times and in the manner provided in this Charter and who shall serve for terns of four years and until their respective successors qualify. Subject to the provisions of this Charter, the members of the City Council in office at the time this Charter takes effect shall continue in office until the expiration of their respective terms and until their successors are elected and qualified. Four members of the City Council shall be elected at the general municipal election held in 1966, and each fourth year thereafter. Three members of the City Council shall be elected at the general municipal election held in 1968, and each fourth year thereafter. No person shall be elected as a member of the City Council for more than two consecutive terms and no person who has been a member for more than two years of a term to which some other person was elected a member shall be elected to the City Council more than one further consecutive term. Subject to the provisions of this Charter, the City Clerk, City Treasurer and City Attorney in office at the time this Charter takes effect shall continue in office until the expiration of their respective terms and the qualification of their successors. A City Clerk and City Treasurer shall be elected at the general municipal election held in 1968, and each fourth year thereafter. A City Attorney shall be elected in 1966, and each fourth year thereafter. The term of each member of the City Council,.the City Clerk, the City Treasurer and the City Attorney shall commence on the first Monday following the certification of the hi-s election. Ties in voting among candidates for office shall be settled by the casting of lots. If no candidate meets the qualifications for office of the City Clerk. City Treasurer, or City Attorney, the City Council shall fall that position by appointment until the next municipal general election in which a qualified, candidate is elected. Section 301. POWERS VESTED IN CITY COUNCIL. All powers of the City shall be vested in the City Council except as otherwise provided in this Charter. Section 302. COMPENSATION. The members of the City Council including the Mayor shall receive as compensation for their services as such a monthly salary in the sum of One Hundred Seventy-five Dollars per month. In addition, each member of the City Council shall receive reimbursement on order of the City Council for Council authorized traveling and other expenses when on official duty upon submission of itemized expense accounts therefor. In addition, members shall receive such reasonable and adequate amounts as may be established by ordinance, which Proposed Charter Revisions 03-05-10 2 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS c.f Draft Charter Language - March 5, 2010 amounts shall be deemed to be reimbursement to them of other routine and ordinary expenses, losses and costs imposed upon them by virtue of their serving as City Councilpersons. Section 303. MEETINGS AND LOCATION. (a) Regular Meetings. The City Council shall hold regular meetings at least twice each month at such time as it shall fix by ordinance or resolution and may adjourn or re-adjourn any regular meeting to a date and hour certain which shall be specified in the order of adjoununent and when so adjourned each adjourned meeting shall be a regular meeting for all purposes. If the hour to which a meeting is adjourned is not stated in the order of adjournment, such meeting shall be held at the hour for holding regular meetings. If at any time any regular meeting falls on a holiday such regular meeting shall be held on the next business day. (b) Special Meetings. A special meeting may be called at any time by the Mayor, or by a majority of the members of the City Council, by written notice to each member of the City Council and to each local newspaper of general circulation, radio or television station requesting notice in writing. Such notice must be delivered personally or by mail at least twenty-four hours before the time of such meeting as specified in the notice. The call and notice shall specify the time and place of the special meeting and the business to be transacted. No other business shall be considered at such meeting. If any person entitled to such written notice files a written waiver of notice with the City Clerk, it may be dispensed . with. This notice requirement shall be considered fulfilled as to any person who is actually present at the meeting at the time it convenes. In the event of an emergency affecting the public peace, health or safety, a special meeting may be called as provided in this section with less than twenty-four hours written notice by the Mayor Pro Tem in the Mayor's absence or by any member of the City Council in the absence of both the Mayor and Mayor Pro Tem provided that the nature of the emergency is set forth in the minutes of the meeting. (c) Place of Meetings. All regular meetings shall be held in the Council Chambers of the City or in such place within the City to which any such meeting may be adjourned. If, by reason of fire, flood or other emergency, it shall be unsafe to meet in the place designated, the meetings may be held for the duration of the emergency at such place within the City as is designated by the Mayor, or, if he should fail to act,by a majority of the members of the City Council. (d) Open Meetings. All regular and special meetings of the City Council shall be open and public, and all persons shall be permitted to attend such meetings, except that the provisions of this section shall not apply to executive sessions. Subject to the rules governing the conduct of City Council meetings, no person shall be denied the right to be heard by the City Council. Proposed Charter Revisions 03-05-10 3 KEY INSERTIONS: Bold 14 pt. font,Double underline DELETIONS S4ik� Draft Charter Language - March 5, 2010 e)Dissemination of Information. City Council shall adopt rules to ensure thorough and timely dissemination of information via current technolo3v by resolution. Section 304. QUORUMS,PROCEEDINGS AND RULES OF ORDER. (a) Quorum. A majority of the members of the City Council shall constitute a quorum to do business but a lesser number may adjourn from time to time. In the absence of all the members of the City Council from any regular meeting or adjourned regular meeting, the City Clerk may declare the same adjourned to a stated day and hour. The City Clerk shall cause written notice of a meeting adjourned by less than a quorum or by the City Clerk to be delivered personally or by mail to each Council member at least twenty-four hours before the time to which the meeting is adjourned, or such notice may be dispensed with in the same manner as specified in this Charter for dispensing with notice of special meetings of the City Council.. (b) Proceedings. The City Council shall judge the qualification of its members as set forth by the Charter. It shall judge all election returns. Each member of the City Council shall have the power to administer oaths and affirmations in any investigation or proceeding pending before the City Council. The City Council shall have the power and authority to compel the attendance of witnesses, to examine them under oath and to compel the production of evidence before it. Subpoenas shall be issued in the name of the City and be attested by the City Clerk. They shall be served and complied with in the same manner as subpoenas in civil actions. Disobedience of such subpoenas, or the refusal to testify (upon other than constitutional grounds), shall constitute a misdemeanor, and shall be punishable in the same manner as violations of this Charter are punishable. The City Council shall have control of all legal business and proceedings and all property of the legal department, and may employ other attorneys to take charge of or may contract for any prosecution, litigation or other legal matter or business. (c) Rules of Order. The City Council shall establish rules for the conduct of its proceedings and evict or prosecute any member or other person for disorderly conduct at any of its meetings. Upon adoption of any ordinance, resolution, or order for payment of money, or upon the demand of any member,the City Clerk shall call the roll and shall cause the ayes and noes taken on the question to be entered in the minutes of the meeting. Section 305. PRESIDING OFFICER. At the Council meeting at which any Council member is installed following any general or special municipal election, and at any time when there is a vacancy in the office of Mayor, the City Council shall meet and shall elect one of its members as its presiding officer, who shall have the title of Mayor. The Mayor may make and second motions and shall have a voice and vote in all its proceedings. The Mayor shall be the official head of the City for all ceremonial purposes; shall have the primary but not the exclusive responsibility for Proposed Charter Revisions 03-05-10 4 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS Stf-- ". Draft Charter Language - March 5, 2010 interpreting the policies, programs and needs of the City government to the people, and as occasion requires, may inform the people of any major change in policy or program; and shall perform such other duties consistent with the office as may be prescribed by this Charter or as may be imposed by the City Council. The Mayor shall serve in such capacity at the pleasure of the City Council. Section 306. MAYOR PRO TEMPORE. The City Getineil shall also designate elie of its Eeuneil. The Mayor Pro Tempore shall perform the duties of the Mayor during the Mayor's absence or disability or at the Mayor's request. a) At the City Council meeting following any general or special municipal election at which any council member is installed, or as soon thereafter as the results of the election are certified, the City Council shall elect a Mav®r Pro Tempore. In non-election years, the selection of Mayor Pro Tempore shall be made at the City Council meeting date closest to the anniversary date of the selections in the election years. The Mayor Pro Tempore shall serve a term of one year. (b)The member of the City Council having the longest consecutive City Council service shall become the Mayor Pro tempore. (1) In the event that two City Council Members have the same length of service, then the member who received the greatest number of votes in the last Council election in which such member was elected shall become Mayor Pro Tempore. (2) If any member declines their term as it arises in rotation, that members shall remain in the same place in the rotation cycle as if they had served. (3) Any City Council member who has served as Mayor within the last five years will not be eligible for. election as Mayor Pro Tempore. Section 307. NON-INTERFERENCE WITH ADMINISTRATION. Except as otherwise provided in this Charter, no member of the City Council shall order, directly or indirectly, the appointment by the City Manager, or by any of the department heads in administrative service of the City, of any person to any office or employment, or removal therefrom. Except for the purpose of investigation and inquiry, the members of the City Council shall deal with the administrative service under the jurisdiction of the City AdfflifiistfateT- Manager solely through the Gity Administrator-- Manager, and no member of the City Council Proposed Charter Revisions 03-05-10 5 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS 4ket4 b Draft Charter Language - March 5, 2010 shall give orders to any subordinate of the City ^aminist fate- MVIanager, either publicly or privately. No elected department head or staff of the Office of the elected department head shall be a member of the management negotiation team for the purposes of negotiations of memorandums of understanding with the employee bargaining units. Section 308. OFFICIAL BONDS. The City Council shall fix by ordinance or resolution the amounts and terms of the official bonds of all officials or employees who are required by this Charter or by ordinance to give such bonds. All bonds shall be executed by responsible corporate surety, shall be approved as to form by the City Attorney, and shall be filed with the City Clerk. Premiums on official bonds shall be paid by the City. A blanket bond may be used if it provides the same protection as the required separate bond would provide. In all cases wherein an employee of the City is required to furnish a faithful performance bond, there shall be no personal liability upon, or any right to recover against, the employee's superior officer or other officer or employee or the bond of the latter, unless such superior officer, or other officer or employee is a party to the act or omission, or has conspired in the wrongful act directly or indirectly causing the loss. Section 309. CITY ATTORNEY. POWERS AND DUTIES. To become and remain eligible for City Attorney the person elected or appointed shall, have graduated from a law school accredited by the American Bar Association, be an attorney at law, duly licensed as such under the laws of the State of California, and shall have been engaged in the practice of law in this State for at least tlH;ee &Yk years prior to their election or appointment.. The City Attorney shall have the power and may be required to. (a) Represent and advise the City Council and all City officers in all matters of law pertaining to their offices. (b) Prosecute on behalf of the people any or all criminal cases arising from violation of the provisions of this Charter or of City ordinances and such state misdemeanors as the City has the power to prosecute,unless otherwise provided by the City Council. (c) Represent and appear for the City in any or all actions or proceedings in which the City is concerned or is a party, and represent and appear for any City officer or employee, or former City officer or employee, in any or all civil actions or proceedings in which such officer or Proposed Charter Revisions 03-05-10 6 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS &4i Draft Charter Language - March 5, 2010 employee is concerned or is a party for any act arising out of their employment or by reason of their official capacity. (d) Attend all regular meetings of the City Council, unless excused, and give their advice or opinion orally or in writing whenever requested to do so by the City Council or by any of the boards or officers of the City. (e) Approve in writing the form of all contracts made by and all bonds and insurance given to the City., (f) Prepare any and all proposed ordinances and City Council resolutions and amendments thereto. g) Devote such time to the duties of their office and at such place as may be specified by the City Council. (h) Perform such legal functions and duties incident to the execution of the foregoing powers as may be necessary. (1) Surrender to their successor all books, papers, files, and documents pertaining to the City`s affairs. Assist and cooperate with the City Manager in administering the affairs of the City in the most efficient. fiscally responsible, and harmonious manner consistent with the duties as prescribed by law, City Charter, by ordinance. Section 310. CITY CLERK. POWERS AND DUTIES. To become and remain eligible for City Clerk, the person elected or appointed shall have a bachelors degree in business, public administration, or a related field and hold a certification as a Municipal Clerk or obtain such certification within the first three years in office. The City Clerk shall have the power and shall be required to: (a) Attend all meetings of the City Council,unless excused, and be responsible for the recording and maintaining of a full and true record of all of the proceedings of the City Council in beel-Vs records that shall bear appropriate titles and be devoted to such purpose. (b) Maintain separate beeks records, in which shall be recorded respectively all ordinances and resolutions, with the certificate of the Clerk annexed to each thereof stating the same to be Proposed Charter Revisions 03-05-10 7 KEY INSERTIONS: Bold 14 pt. font, Double wnderline DELETIONS S44,4h, Draft Charter Language - March 5, 2010 the original or a correct copy, and as to an ordinance requiring publication, stating that the same has been published or posted in accordance with this Charter. (c) Maintain separate records of all written contracts and official bonds. (d) Deep all books andrecords in their possession properly indexed and open to public inspection when not in actual use. (e) .Be the custodian of the seal of the City. (f) Administer oaths or affirmations, take affidavits and depositions pertaining to the affairs and business of the City and certify copies of official records. (g) Be ex officio Assessor, unless the City Council, has availed itself, or does in the future avail itself, of the provisions of the general laws of the State relative to the assessment of property and the collection of City taxes by county officers, or unless the City Council by ordinance provides otherwise. (h) Have charge of all City elections. (i) Perform such other duties consistent with this Charter as may be required by ordinance or resolution of.the City Council. (i) Assist and cooperate with the City Manager in administering the affairs of the ity in the most efficient fiscally responsible, and harmonious manner consistent with the duties as prescribed by law, City Charter, by ordinance. The City Clerk may, subject to the approval of the City Council, appoint such deputy or deputies to assist them or act for them, at such salaries or compensation as the Council may by ordinance or resolution prescribe. ogg4 i Section 311. CITY TREASURER. POWERS AND DUTIES. To become and remain eligible for City Treasurer, the person elected or appointed shall have a bachelors degree in accounting finance business or a related field, and at least three years administrative level experience coordinating and supervising the Proposed Charter Revisions 03-05-10 8 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS Draft Charter Language - March 5, 2010 daily operations of an office. The City Treasurer shall have the power and shall be required to: (a) Receive on behalf of the City all taxes, assessments, license fees and other revenues of the City, or for the collection of which the City is responsible, and receive all taxes or other money receivable by the City from the County, State or Federal governments, or from any court, or from any office, department or agency of the City. (b) Have and keep custody of all public funds belonging to or under- control of the City or any office, department or agency of the City government and deposit or cause to be deposited all funds coming into their hands in such depository as may be designated by resolution of the City Council, or, if no such resolution be adopted, then in such depository designated in writing by the City Administrator Manager, and in compliance with all of the provisions of the State Constitution and laws of the State governing the handling, depositing and securing of public funds. (c) Pay out moneys only on proper orders or warrants in the manner provided for in this Charter. (d) Prepare and submit to.the Director of Finance monthly written reports of all receipts, disbursements and fund balances, and shall file copies of such. reports with the City Administrator Manager and City Council. (e) Perform such other duties consistent with.this Charter as may be required by ordinance or resolution of the City Council. (f) Assist and cooperate with the City Manager in administering the affairs of the City in the most efficient, fiscally responsible, and harmonious manner consistent with the duties as prescribed by law, City Charter, by ordinance. The City Treasurer may, subject to the approval of the City Council, appoint such deputy or deputies to assist them or act for them, at such salaries or compensation as the Council may by ordinance or resolution prescribe. Section 312.VACANCIES,FORFEITURES AND REPLACEMENT. (a) Vacancies. A vacancy in the City Council or in any other office designated as elective by this Charter, from whatever cause arising, shall be filled by appointment by the City Council. Proposed Charter Revisions 03-05-10 9 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS S4i-, � Draft Charter Language - March 5, 2010 (b) Forfeiture. If a member of the City Council is absent from all regular meetings of the City Council for a period of thirty consecutive days from and after the last regular City Council meeting attended by such member, unless by permission of the City Council expressed in its official minutes, the office shall become vacant. If an elected City officer is convicted of a crime e€ , or pled no contest, regardless of appeal, to a crime, or ceases to be an elector of the City, the office shall become vacant. The City Council shall declare the existence of such vacancy. Any elective officer of the City who shall accept or retain any other elective public office, except as provided in this Charter, shall be deemed thereby to have vacated the office under the City Government. (c) Replacement. In the event it shall fail to fill a vacancy by appointment within sixty days after such office shall become vacant, the City Council shall forthwith cause an election to be held to fill such vacancy for the remainder of the unexpired term. Section 313. CONFLICT OF INTEREST, NEPOTISM. (a) Conflict of Interest. The City Council shall adopt or approve rules and regulations regulating conflicts of interest and promoting fair dealing in all City business. (b) Nepotism. The City Council shall not appoint to a salaried position under the City government any person who is a relative by blood or marriage within the third degree of any one or more of the members of such City Council, nor shall the City Admiaistr-atar Manager or any department head or other officer having appointive power appoint any relative of such person or of any Council member within such degree to any such position. This provision shall not affect the employment or promotional status of a person who has attained a salaried position with the City prior to the existence of a situation contemplated by this provision; however, Council members or officers with appointive powers in such a situation shall disqualify themselves from all decisions affecting the employment and promotional status of such person. ARTICLE IV APPOINTIVE OFFICES AND PERSONNEL Section 400. CITY ADMINISTRATOR MANAGER. COMPOSITION, TERM, ELIGIBILITY,REMOVAL. (a) Composition. There shall be a City Adfainistfatef Manager who shall be the chief administrative officer of the City. Proposed Charter Revisions 03-05-10 10 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS c...� Draft Charter Language - March 5, 2010 (b) Term. The na,v.:„isti-atef City Manager shall be appointed by the affirmative vote of at least a majority of the members of the City Council and shall serve at the pleasure of the City Council; provided, however, that the person occupying the office shall not be removed from office except as herein provided. (c) Eligibility. The ^dminist- tof City Manager shall be chosen on the basis of executive and administrative qualifications, with special reference to actual experience in and knowledge of accepted practice as regards the duties of the office as herein set forth. No person shall be eligible to be appointed City AdminisifatofManager or Acting City Manager while serving as a member of the City Council nor within one year following the termination of membership on the City Council. (d) Removal. The City ^ari mist.-at f: Manager shall not be removed from office during or within a period of ninety days next succeeding any municipal election at which a member of the City Council is elected. At any other time the City ^a,., mini,-.,, Manager may be removed only at a regular meeting of the City Council and upon the affirmative vote of a majority of the members of the City Council. At least thirty days prior to the effective date of removal, the City ^a,. mini...,, Manager shall be furnished with a written notice stating the Council's intentions and, if requested by the City ^am mist.-,*,. Manager the reasons therefor. Within seven days after receipt of such notice, the City "a,, mist,.. Manager may by written notification to the City Clerk request a public hearing before the City Council, in which event the Council shall fix a time for a public hearing which shall be held at its regular meeting place before the expiration of the thirty-day period above referred to. The City Manager shall appear and be heard at such hearing. After furnishing the City Adlilinistfatef Manager with written notice of the intended removal, the. City Council may suspend the City Manager from duty, but his compensation shall continue until removal as herein provided. In removing the City ^dminis*r^*^f Manager, the City Council shall use its uncontrolled discretion and its action shall be final and shall not depend upon any particular showing or degree of proof at the hearing, the purpose of which is to allow the City Council and the City administrator- Manager to present to each other and to the public all pertinent facts prior to the final action of removal. Section 401. POWERS AND DUTIES. Except as otherwise provided in this Charter, the City AdministfateManager shall be responsible to the City Council for the proper administration of all affairs of the City. Without limiting this general grant of powers and responsibilities, the City Manager shall have the power and be required to: Proposed Charter Revisions 03-05-10 11 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS S*6' gh Draft Charter Language - March 5, 2010 (a) Appoint, promote, demote, suspend or remove department heads, officers and employees of the City except elective officers. u,,. eve no dorm,, ent head shall be appointed O e tinfil the CityNdministfatef shall fifst have r-eviewed sueh appointment of femoval with the City (b) Prepare the budget annually, submit it to the City Council, and be responsible for its administration upon adoption. (c) Prepare and submit to the City Council as of the end of each fiscal year, a complete report on the finances of the City, and annually or more frequently, a current report of the principal administrative activities of the City. (d) Keep the City Council advised of the financial condition and future needs of the City and make such recommendations as may seem desirable. (e) Maintain a centralized purchasing system for all City offices, departments and agencies. (f) Prepare, administer and enforce rules and regulations recommended to and adopted by the City Council governing the contracting for, purchase, inspection, storage, inventory, distribution and disposal of all supplies, materials and equipment required by any office, department or agency of the City government. (g) Be responsible for the compliance by the City with the laws of the State pertaining to the City,the provisions of this Charter and the ordinances, franchises and rights of the City. (h) Subject to policy established by the City Council, exercise control of all administrative offices and departments of the City and of all appointive officers and employees except those directly appointed by the City Council and prescribe such general rules and regulations as he may deem necessary or proper for the general conduct of the administrative offices and departments of the City under his jurisdiction. (1) Perform such other duties consistent with this Charter as may be required by the City Council. (il It shall be the duty of all department heads, whether appointed or elected, to assist and cooperate with the City 1Vlanal!er in administering the affairs of the City in the most efficient, fiscally responsible, and harmonious manner consistent with the duties as prescribed by law, City Charter, by ordinance. Proposed Charter Revisions 03-05-10 12 KEY INSERTIONS: Bold 14 pt. font,Double underline DELETIONS Stfi' r Draft Charter Language - March 5, 2010 Section 402. ACTING CITY MANAGER. During any temporary absence or disability of the City AdminisifatefManager, the C'.+ ity ^dministr-atef shall a3 Aeting City Adminisifator-. Dui-zing any tempefafy absenee or- disability of both the City Administizater, and the Assistant City , the City ^dfniflistf to Manager shall appoint one of the other officers or department heads of the City to serve as Acting City ^ R — Manager. In the event the City AdministfatofManager fails to make such appointment, such appointment may be made by the City Council. Section 403. PERSONNEL. In addition to the City Council, a City Clerk, a City Treasurer, a City Attorney and City Manager, the officers and employees of the City shall consist of such other officers, assistants, deputies and employees as the City Council may provide by ordinance or resolution. The City Council shall establish such reasonable compensation and fringe benefits as are appropriate by ordinance or resolution for such offices, officials and employees except as herein provided. The City Council shall maintain by ordinance a comprehensive personnel system for the City. The City Manager Administfatef, Assistant tfatef, and any officers designated as elective by the Charter shall be exempt. The system shall consist of the establishment of minimum standards of employment and qualifications for the various classes of employment and procedures to be followed in advancement, demotion, suspension and discharge of employees included within the system, as the City Council shall determine to be for the best interest of the public service. The ordinance shall designate the appointive officers and employees who shall be included within the system. By subsequent ordinances the City Council may amend the system or the list of appointive officers and employees included within the system:, ~ We-a, howeye f, that e elude`' within the system, no offieef of empleyee shall be withdrawn thefeffom (tmiess the effle -is eleetion by a majefity of the . ote fs - -t... p sitier The system shall comply with all TIVll. other provisions of this Charter. Section 404. RETIREMENT SYSTEM. The City shall participate in a retirement system. Section 405. BOARDS, COMMISSIONS AND COMMITTEES. The City Council shall establish such boards, commissions and committees as are deemed necessary for the orderly functioning of the City. All such boards, commissions and committees shall report directly to the City Council. Proposed Charter Revisions 03-05-10 13 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS S4ik�n Draft Charter Language - March 5, 2010 ARTICLE V ORDINANCES AND RESOLUTIONS Section 500. REGULAR ORDINANCES. ENACTMENT, ADOPTION, PUBLICATION, AMENDMENT,WHEN EFFECTIVE AND CODIFICATION. (4) Enactment. In addition to such other acts of the City Council as are required by this Charter to be taken by ordinance, every act of the City Council establishing a fine or other penalty, or granting a franchise, shall be by ordinance. The enacting clause of all ordinances shall be substantially as follows: "The City Council of the City of Huntington Beach does ordain as follows:." No order for the payment of money shall be adopted or made at other than a regular or adjourned regular meeting. Upon introduction and seeand ,-o,,difi g, an ordinance shall be read by title only. Unless a higher vote is required by other provisions of this Charter, the affirmative vote of at least four of the City Council shall be required for the enactment of any ordinance or for the making or approving of any order for the payment of money. All ordinances shall be signed by the Mayor and attested by the City Clerk. (b) Adoption. A regular ordinance shall be adopted only at a regular or adjourned. regular meeting held no less than five days after its introduction. In the event that any ordinance is altered after its introduction, it shall be finally adopted only at a regular or adjourned regular meeting held no less than five days after the date it was so altered. The correction of typographical or clerical errors shall not constitute the making of an alteration within the meaning of the foregoing sentence. (c) Publication. The City Clerk shall cause each ordinance to be posted in three places designated by the City Council within the City and to be published by title with a brief summary at least once within fifteen days after its adoption in a daily, semiweekly or weekly newspaper, published in the County or the City and circulated in the City, which is selected by the City Council for that purpose, and via current technology to ensure the widest dissemination. (d) Amendment. The amendment of any section or subsection of an ordinance may be accomplished solely by the re-enactment of such section or subsection at length, as amended. (e) When Effective. Every ordinance shall become effective thirty days from and after the date of its adoption, except the following, which shall take effect upon adoption: (1) An ordinance calling or otherwise relating to an election; (2) An improvement proceeding ordinance adopted under some special law or procedural ordinance relating thereto; Proposed Charter Revisions 03-05-10 14 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS c. Draft Charter Language - March 5, 2010 (3) An ordinance declaring the amount of money necessary to be raised by taxation, or fixing the rate of property taxation, or levying the annual tax upon property. (4) An emergency ordinance adopted in the manner provided in this Charter. (f) Codification. Detailed regulations pertaining to any subject and comprehensive codifications of valid ordinances may be adopted by reference, with the same effect as an ordinance, in the manner set forth herein; however, such regulations and codifications need not be published in the manner required for other ordinances, but not less than three copies thereof shall be filed for use and examination by the public in the office of the City Clerk prior to adoption. Ordinances codified shall be repealed as of the effective date of the codification. Amendments to the code shall be enacted by ordinance. Section 501. EMERGENCY ORDINANCES. Any ordinance declared by the City Council to be necessary as an emergency measure for the immediate preservation of the public peace, health, or safety, and containing a statement of the reasons for its urgency, may be adopted in the manner . provided in Section 500 except that such emergency ordinance may be introduced, enacted and adopted at one and the same regular or special meeting and shall take effect immediately upon adoption if passed by at least five affirmative votes. An emergency ordinance shall repeal automatically after 120 days. Section 502. RESOLUTIONS. The City Council may act by resolution or minute order in all actions not required by this Charter to be taken by ordinance. Section 503. PUBLISHING OF LEGAL NOTICES. The City Council shall cause to be published all legal notices and other matters required to be published by law in a daily, semiweekly or weekly newspaper published in the County or the City and circulated in the City which is selected by the City Council for that purpose and via current technology. No defect or irregularity in proceedings taken under this section shall invalidate any publication where it is otherwise in conformity with this Charter or law or ordinance. ARTICLE VI FISCAL ADMINISTRATION Section 600. FISCAL YEAR. The fiscal year of the City shall be m july 1 io june 30,,,,10�� ether=-vise established by efdin nee as set forth by resolution of the City Council. Section 601. ANNUAL BUDGET, PREPARATION BY THE CITY ADAHNIST- MANAGER. At such date as the City Administfatef1Vlanager shall determine, each board or commission and each department head shall furnish to the City Adfflinistfatef1Vlana�er, personally, or through the Director of Finance, estimates. of the department's, board's or Proposed Charter Revisions 03-05-10 15 KEY INSERTIONS: Bold 14 pt. font; Double underline DELETIONS Sikeg� Draft Charter Language - March 5, 2010 commission's revenue and expenditures for the ensuing fiscal year, detailed in such manner as may be prescribed by the City AdministfatefManager. In preparing the proposed budget, the City Admifiistfate Manager shall review the estimates, hold conferences thereon with the respective department heads, boards or commissions as necessary, and may revise the estimates as may be deemed advisable. Section 602. ANNUAL BUDGET. SUBMISSION TO THE CITY COUNCIL. The City AdministfatoManager shall submit the proposed budget to the City Council at least 4 thirty days prior to the beginning of each fiscal year. After reviewing the proposed budget and making such revisions as it may deem advisable, the City Council shall hold a public hearing thereon at least fifteen days prior to the beginning of each fiscal year and shall cause to be published a notice thereof not less than ten days prior to said hearing. Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least ten days prior to said hearing. Section 603. ANNUAL BUDGET. PUBLIC HEARING. At the time so advertised or at any time to which such public hearing shall from time to time be adjourned, the City Council shall hold a public hearing on the proposed budget, at which interested persons desiring to be heard shall be given such opportunity. Section 604. ANNUAL BUDGET. FURTHER CONSIDERATION AND ADOPTION. At the conclusion of the public hearing the City Council shall further consider the proposed budget and :make any revisions thereof that it may deem advisable and on or before the last day of the fiscal year it shall adopt the budget with revisions, if any, by the affirmative vote of at least a majority of the total members of the Council. Upon final adoption, the budget shall be in effect for the ensuing Fiscal year. Copies thereof, certified by the City Clerk, shall be filed with the City Adffliflistfatef Manager, Director of Finance, City Treasurer and the person retained by the City Council to perform the post audit function, and a further copy shall be placed, and shall remain on file in the office of the City Clerk where it shall be available for public inspection. The budget so certified shall be reproduced and copies made available for the use of the public and of departments, offices and agencies of the City. Section 605. ANNUAL BUDGET APPROPRIATIONS. From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become appropriated to the several departments, offices and agencies for the respective objects and purposes therein named; provided, however, that the City Manager may transfer funds from one object or purpose to another within the same department, office or agency. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered. Proposed Charter Revisions 03-05-10 16 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS S4i �n Draft Charter Language - March 5, 2010 At any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative vote of at least a majority of the total members of the City Council. Section 606. IDETERMINATION OF CITY TAX RATE. The City Council shall prescribe by ordinance for the assessment, levy and collection of taxes upon property which is taxable for municipal purposes. if the City Council fails to fix the rate and levy taxes on or before August 31 in any year, the rate for the next preceding fiscal year shall thereupon be automatically adopted and a tax at such rate shall be deemed to have been levied on all taxable property in the City for the current fiscal year. Section 607. TAX LIMITS. (a) The City Council shall not levy a property tax for municipal purposes in excess of One Dollar annually on each One Hundred Dollars of the assessed value of taxable property in the City, except as otherwise provided in this section, unless authorized by the affirmative vote of a majority of the electors voting on a proposition to increase such levy at any election at which the question of such additional levy for municipal purposes is submitted to the electors. The number of years that such additional levy is to be made shall be specified in such proposition. (b) There shall be levied and collected at the same time and in the same manner as other property taxes for municipal purposes are levied and collected, as additional taxes not subject to the above limitation, if no other provision for payment thereof is made: 1. A tax sufficient to meet all liabilities of the City of principal and interest of all bonds and judgments due and unpaid, or to become due during the ensuing fiscal year, which constitute general obligations of the City; and 2. A tax sufficient to meet all obligations of the City for the retirement system in which the City participates,due and unpaid or to become due during the ensuing fiscal year. (c) Special levies, in addition to the above and not subject to the above limitation, may be made annually,based on City Council approved estimates, for the following specific purposes,but not to exceed the following respective limits for those purposes for which limits are herein set forth, to wit: parks and recreation and human services not to exceed $0.20 per One Hundred Dollars; Libraries not to exceed $0.15 per One Hundred Dollars; promotional interests and cultural affairs not to exceed $0.07 per One Hundred Dollars; and civil defense and disaster preparedness not to exceed $0.03 per One Hundred Dollars. The proceeds of any special levy shall be used for no other purpose than that specified. Proposed Charter Revisions 03-05-10 17 KEY INSERTIONS: Bold 14 pt. font.. Double underline DELETIONS S4ikee 4 ng" Draft Charter Language - March 5, 2010 Section 608. VOTE REQUIRED FOR TAX MEASURES. No tax, property tax, or other measure whose principal purpose is the raising of revenue, or any increase in the amount thereof, shall be levied, enacted or established except by ordinance adopted by the affirmative vote of at least five (5) members of the City Council; provided, however, that any tax levied or collected pursuant to Section 607(b) of this Charter shall be exempt from the minimum voting requirement of this section. This section shall not apply to any license, permit, or any other fee or charge whose principal purpose is to pay or reimburse the City for the cost of performing any regulatory function of the City under its police power in connection with the City's duty to preserve or maintain the public peace, health, safety and welfare. This section shall not apply to any user or service fee or charge provided such fee or charge is directly related to such use or service, is charged to the user or person receiving such service, and is to pay or reimburse the City for the costs of providing such use or service. This section shall not apply to any fee or charge relating to any franchise or proprietary function of the City. Section 609. REAL ESTATE TRANSFER TAX. The City Council shall not levy a tax on the transfer or conveyance of any interest in real property unless authorized by the affirmative vote of a majority of the electors voting on a proposition submitted to the electors to authorize such tax at a general or special election. Section 610. BONDED DEBT LIMMIT. The City shall not incur an indebtedness evidenced by general obligation bonds which shall in the aggregate exceed the sum of 12 percent of the total assessed valuation, for purposes of City taxation, of all the real and personal property within the City. No bonded indebtedness which shall constitute a general obligation of the City may be created unless authorized by the affinnative vote of the majority required by law of the electors voting on such proposition at any election at which the question is submitted to the electors. Section 611. REVENUE BONDS. Bonds which are payable only out of such revenues, other than taxes, as may be specified in such bonds, may be issued when the City Council by ordinance shall have established a procedure for the issuance of such bonds. Such bonds, payable only out of revenues, shall not constitute an indebtedness or general obligation of the City. No such bonds payable out of revenues shall be issued without the assent of the majority of the voters voting upon the proposition for issuing the same at an election at which such proposition shall have been duly submitted to the registered voters of the City. Proposed Charter Revisions 03-05-10 18 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS wik-,� Draft Charter Language - March 5, 2010 It shall be competent for the City to make contracts and covenants for the benefit of the holders of any such bonds payable only.from revenues and which shall not constitute a general obligation of the City for the establishment of a fund or funds, for the maintaining of adequate rates or charges, for restrictions upon further indebtedness payable out of the same fund or revenues, for restrictions upon transfer out of such fund, and other appropriate covenants. Money placed in any such special fund for the payment of principal and/or interest on any issue of such bonds or to assure the application thereof to a specific purpose shall not be expended for any other purpose whatever except for the purpose for which such special funds were established and shall be deemed segregated from all other funds of the City and reserved exclusively for the purpose for which such special fund was established until the purpose of its establishment shall have been fully accomplished. Section 612. PUBLIC UTILITIES AND PARKS AND BEACHES. (a) No public utility or park or beach or portion thereof now or hereafter owned or operated by the City shall be sold, leased, exchanged or otherwise transferred or disposed of unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted. (b) No golf course, driving range, road, building over three thousand square feet in floor area nor structure costing more than $109,088 09 $161,000.00 may be built on or in any park or beach or portion thereof now or hereafter owned or operated by the City unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted after the appropriate environmental assessment, conceptual estimate, and reasonable project description has been completed and widely disseminated to the public. Effective January 1, 2011, and each year thereafter, the maximum cost will be adjusted by the Consumer Price Index for the Los Angeles-Riverside- ®range County area. (c) Section 612(a) and 61.2(b) shall not apply; (1) to libraries or piers; (2) to any lease, franchise, concession agreement or other contract where; - the contract is to perform an act or provide a service in a public park or beach AND - such act was being performed or service provided at the same location prior to January 1, 1989 AND Proposed Charter Revisions 03-05-10 19 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS c.f_: , b Draft Charter Language - March 5, 2010 the proposed lease, franchise, concession agreement or other contract would not increase the amount of parkland or beach dedicated to or used by the party performing such act or providing such service. (3) to above ground public works utility structures under 3,000 square feet- (4) to public works underground structures if park or beach use is not impeded• (5) to any public works construction, maintenance or repair mandated by state or federal law: or (6) to renewable energy projects that do not impact open space. (d) If any section, subsection, part, subpart, paragraph, clause or phrase of this amendment, or any amendment or revision of this amendment, is for any reason held to be invalid or unconstitutional, the remaining sections, subsections, parts, subparts, paragraphs, clauses or phrases shall not be affected but shall remain in full force and effect. (12i7/90) Section 613. EXECUTION OF CONTRACTS. Except as hereinafter provided, the City shall be bound by a contract only if it is made in writing, approved by the City Council and signed on behalf of the City by the Mayor and City Clerk or by a City officer designated by the City Council and only upon the direction of the City Council. Exceptions to this procedure are as follows: (a) By ordinance or resolution the City Council may authorize the City ^,miiiist f to f Manager or other officer to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services or other items included within the budget approved by the City Council, and may impose a monetary limit upon such authority. (b) By ordinance or resolution, the City Council may provide a method for the sale or exchange of personal property not needed in the City service or not fit for the purpose for which intended, and for the conveyance of title thereto. (c) Contracts for the sale of the products, commodities or services of any public utility owned, controlled or operated by the City may be made by the manager of such utility or by the head of the department or City Manager upon forms approved by the City AdffiinistfatefManager and at rates fixed by the City Council. Section 614. CONTRACTS ON PUBLIC WORKS. Except as hereinafter expressly provided, every contract involving an expenditure of more than Twenty five Thettsand Dellafs ($25,0" as Proposed Charter Revisions 03-05-10 20 KEY INSERTIONS: Bold 14 pt. font, Double un erli e DELETIONS c'~' � Draft Charter Language - March 5, 2010 set forth by ordinance of the City Council for the construction or improvement (excluding maintenance and repair) of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds, and each separate purchase of materials or supplies for the same, where the expenditure required for such purchase shall exceed the stim of Twen y five Thousand Dellafs ($5,009)-amount set, shall be let to the lowest responsible bidder after notice by publication in accordance with Section 503 by two or more insertions, the first of which shall be at least ten days before the time for opening bids. The City Council may reject any and all bids presented and may readvertise in its discretion. After rejecting bids, or if no bids are received, or without advertising for bids if the total amount of the contract or project is less than Twenty five Thousand Della�L$25,0 is below the amount set by ordinance, the City Council may declare and detennine that in its opinion, the work in question may be performed better or more economically by the City with its own employees, or that the materials or supplies may be purchased at lower price in the open market, and after the adoption. of a resolution to this effect by the affirmative vote of a majority of the total members of the City Council, it may proceed to have said work done or such materials or supplies purchased in the manner stated without further observance of the provisions of this section. All public works contracts exceeding the sum of T a Palla fs �Q'�,°°°� Lhe amount set by ordinance may be let and purchases exceeding the s, of Tweet five Thousand Dellar-s (S25 nnm the amount set by ordinance-may be made without advertising for bids if such work or the purchase of such materials or supplies shall be, deemed by the City Council to be of urgent necessity for the preservation of life, health, or property and shall be authorized by at least five affirmative votes of the City Council. Projects for the extension, replacetnent or expansion of the transmission or distribution system of any existing public utility operated by the City or for the purchase of supplies or equipment for any such project or any such utility may be excepted from the requirements of this section by the affirmative vote of a majority of the total members of the City Council. Section 615. GRANTING OF FRANCHISES. The City Council shall by ordinance regulate the granting of franchises for the City. Section 616. INDEPENDENT AUDIT. The City Council shall provide for an independent annual audit of all City accounts and may provide for such more frequent audits as it deems necessary. Such audits shall be made by a certified public accountant or firm of such accountants who have no personal interest, direct or indirect, in the fiscal affairs of the City government or any of its officers. The Council may, without requiring competitive bids, designate such accountant or firm annually provided that the designation for any particular fiscal year shall be made no later than thirty days . after the beginning of such fiscal year. As soon as practicable after the end of the fiscal year,a final Proposed Charter Revisions 03-05-10 21 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS c44et� Draft Charter Language - March 5, 2010 audit and report shall be submitted by such accountant to the City Council, one copy thereof to be distributed to each member. Additional copies of the audit shall be placed on file in the office of the City Clerk where they shall be available for inspection by the general public, and a copy of the financial staternent as of the close of the fiscal year shall be published in the official newspaper. Section 617. INFRASTRUCTURE FUND. (a) All revenue raised by vote of the electors or imposed by vote of the City Council on or after March 5, 2002, by a measure which states that the revenue to be raised is for the purpose of infrastructure, as said term is defined in this paragraph, shall be placed in a separate fund entitled "Infrastructure Fund." The term "Infrastructure" shall mean long-lived capital assets that normally are stationary in nature and normally can be preserved for significantly greater number of years. They include storm drains, storm water pump stations, alleys, streets, highways, curbs and gutters, sidewalks, bridges, street trees, landscaped medians, parks,beach facilities, playgrounds, traffic signals, streetlights; block walls along arterial highways, and all public buildings and public ways. Interest earned on monies in the Infrastructure Fund shall accrue to that account. Monies in said Fund shall be utilized only for direct costs relating to infrastructure improvements or maintenance, including construction, design, engineering, project management, inspection, contract administration and property acquisition. Monies in said Fund shall not be transferred, loaned or otherwise encumbered for any other purpose. (b) Revenues placed in the Infrastructure Fund shall not supplant existing infrastructure funding. The average percentage of general fund revenues utilized for infrastructure improvements and maintenance, for the five- (5) year period of 1996 to 2001, is and was 14.95%. Upon adoption of the 2015/2016 budget, eLlxpenditures for infrastructure improvements and maintenance,exeluding debt service , shall not be reduced below 15% of general fund revenues based on a five- (5)year rolling average. Effective upon adoption of the 2011/2012 budget, no additional debt service shall be included in the calculation of the formula identified above. Effective upon adoption of the 2011/2012 budget, the City Council shall reduce the debt service component of the infrastructure expenditures existing in the 2011/2012 budget by no less than 25% each year until adoption of the 2015/2016 budget. . (c) The City Council shall by ordinance establish a Citizens Infrastructure Advisory Board to conduct an annual review and performance audit of the Infrastructure Fund and infrastructure expenditures and report its findings to the City Council prior to adoption of the following fiscal-year budget. Proposed Charter Revisions 03-05-10 22 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONSlce�lrreugli Draft Charter Language - March 5, 2010 ARTICLE VII ELECTIONS Section 700. GENERAL MUNICIPAL ELECTIONS. General municipal elections shall be held in the city on the first Tuesday after the first Monday in November in each even-numbered year. (12/9/82) Section 701. SPECIAL MUNICIPAL ELECTIONS. All other municipal elections that may be held by authority of this Charter, or of any law, shall be known as special municipal elections. Section 702. PROCEDURE FOR HOLDING ELECTIONS. All elections shall be held in accordance with the provisions of the Elections Code of the State of California, as the same now exists or hereafter may be amended, for the holding of municipal elections, so far as the same are not in conflict with this Charter. Section 703. INITIATIVE, REFERENDUM AND RECALL. There are hereby reserved to the electors of the City .the powers of the initiative and referendum and of the recall of municipal elective officers. The provisions of the Elections Code of the State of California, as the same now exists or hereafter may be amended, governing the initiative and referendum and the recall of municipal officers, shall apply to the use thereof in the City so far as such provisions of the Elections Code are not in conflict with the provisions of this Charter. Section 704. NOMINATION PAPERS. Nomination papers for candidates for elective municipal office must be signed by not less than twenty nor more than thirty electors of the City. ARTICLE VIII MISCELLANEOUS Section 800. TRANSITION. Elective officers and elective officers whose offices are made appointive of the City shall continue to hold such offices until the completion of their current terms and the election or appointment and qualification of their respective successors under this Charter. All boards, commissions and committees presently in existence shall continue to act in accordance with their original grant of authority until such time as the City Council adopts appropriate ordinances pertaining to their activities or for one year, whichever occurs first. All lawful ordinances, resolutions, rules and regulations, and portions thereof, in force at the time this Charter takes effect and not in conflict or inconsistent herewith, are hereby continued in force until the same shall have been duly repealed, amended, changed or superseded by proper authority. Proposed Charter Revisions 03-05-10 23 KEY INSERTIONS: Bold 14 pt. font, Double underline DELETIONS C' ii' Draft Charter Language - March 5, 2010 Section 801. DEFINITIONS. Unless the provisions or the context otherwise requires, as used in this Charter: (a) "Shall" is mandatory, and "may" is permissive. (b) "City" is the City of Huntington Beach and "department," "board," "commission," "agency," "officer," or "employee" is a department, board, commission, agency, officer or employee, as the case may be,of the City of Huntington Beach. (c) "County" is the County of Orange. (d) "State" is the State of California. (e) The masculine includes the feminine and the feminine includes the masculine. (f) The singular includes the plural and the plural the singular. (g) 'Person" includes firm and corporation. Section 802. VIOLATIONS. The violation of any provision of this Charter shall . be a misdemeanor and shall b ishauvic—cipvirE6irviction by u—rf'rrne net-exeeedi 1�`� HuMfed @"day,that any su..h . ,.1.,+;Aen eantinues shall eenstitut ielation. Section 803. PROPERTY RIGHTS PROTECTION MEASURE. (a) The City shall not enact or enforce any measure which mandates the price or other consideration payable to the owner in connection with the sale, lease, rent, exchange or other transfer by the owner of real property. Any such measure is hereby repealed. (b) The word "mandates" as used in subsection (a) includes any measure taken by ordinance, resolution, administrative regulation or other action of the City to establish, continue, implement or enforce any control or system,of controls on the price or other terms on which real property in the city may be offered, sold, leased, rented, exchanged or otherwise transferred by its owner. The words "real property" as used in subsection (a) refer to any parcel of land or site, either improved or unimproved, on which a dwelling unit or residential accommodation is or may be situated for use as a home, residence or sleeping place. (c) This Section 803 shall not apply to: (1) any real property which contains serious health, safety, fire.or building code violations, excluding those caused by disasters, for which a civil or criminal citation has been issued by the City and remains unabated for six months or longer; Proposed Charter Revisions 03-05-10 24 KEY INSERTIONS: Bold 14 pt. font,Double underline DELETIONS c4& Draft Charter Language - March 5, 2010 (2) any real property owned by a public entity, and real property where the owner has agreed by contract with the public entity, including the City and any of its related agencies, to accept a financial contribution or other tangible benefit including without limitation, assistance under the Community Redevelopment Law; (3)any planning or zoning power of the City as relates to the use, occupancy or improvement of real property and to any real property which the City or any of its related agencies may acquire by eminent domain,purchase, grant or donation; (4) any power of the City to require a business license for the sale or rental of real property, whether for regulation or general revenue purposes; (5) any dwelling unit or accommodation in any hotel, motel or other facility when the transient occupancy of that dwelling unit or accommodation is subject to a transient occupancy tax; or (6) to impair the obligation of any contract entered into prior to the enactment of this Section 803 or otherwise required by State law. Section 804 CHARTER REVIEW The City Council shall conduct a review of the 01y_Charter every ten years commencing in 2020. Proposed Charter Revisions 03-05-10 25 *Eilm , ����������Q EXAMPLES OF PREAMBLES Los Angeles We the people of the City of Los Angeles, in order to establish a responsive, effective and accountable government through which all voices-in our diverse society can be heard; to provide fair representation and distribution of government resources and a safe, harmonious environment based on principles of liberty and equality, do enact this Charter. Culver City The People of the City of Culver City, by popular vote, have enacted this Charter to establish a responsive, efficient, effective and accountable government through which all voices in our diverse community can be heard; to ensure fair representation and distribution of government resources; to provide a safe and harmonious environment for our mutual well-being; and to promote the principles of liberty, equality and home rule. Leslie A City Charter is the most significant document the people can adopt for their local self- government. It reflects the needs and aspirations of the community. This first revision of the Charter of the City of Leslie is designed to improve the quality of its government. It provides for greater professionalism of municipal office holders and their accountability to the public. The Charter recognizes the need to plan ahead for the challenges of inevitable change, to keep the public informed, to protect environmental resources, to interact with other communities, to enhance cultural amenities, to promote alternative means of dispute resolution, and to encourage sound ethical practices. Through this Charter the citizens of Leslie claim greater opportunities to benefit from the process of government which they have designed for themselves and their posterity. Riverside We, the people of the City of Riverside believe in promoting an inclusive community with shared economic, environmental and cultural prosperity, equal civil and political rights, social harmony and cohesion, and opportunities for all governed by responsible and responsive public officials who promote citizen participation, as well as just and equitable tax and financial policies; and these beliefs are rooted in our desire to enhance the uniqueness of the City of Riverside. We, the people of the City of Riverside, to obtain and retain for ourselves the benefits of local government, do hereby exercise the express right granted by the Constitution and the statutes of the State of California and enact this Charter for the City of Riverside. Fairfield WE, THE PEOPLE OF THE CITY OF FAIRFIELD, in order to assume responsibility for governing ourselves as fully as possible from the restraint of State authority, return government to the local level, give each individual the opportunity for a voice in the government and establish a plan to ensure the health, welfare and quality of life for us and future generations, do adopt this Charter for the City of Fairfield. Orange County: We, the citizens of Orange County, with a desire for self-determination in selecting our county elected officials and to initiate the process to govern our county by charter government, do hereby adopt this charter. ,3i David Rice Voter approval on major General Plan Amendments Measure C There be a process to verify the cost of improvements covered under Measure C by: • The Public Works Dept. retaining an as-needed professional estimating consultant • Requiring project applicants to submit their construction cost estimates to Public Works for review and pay an associated fee • The city developing a procedure for an independent cost estimate to determine if a public or private project would require a Measure C vote • The city developing a process for notifying the public whenever there is a city-owned or city-operated park or beach development project with a cost of over$10,000 and less than $161,000 (not requiring a Measure C vote). • Utilize a notification process similar to that currently used by Community Services and Planning Departments (mail public notice to property owners w/in 300' of site and public notice in newspaper. Public Works Amend Section2.111.030 of the Municipal Code as follows: Commission on the Infrastructure Fund (i) conduct an annual review and performance audit of the Infrastructure Fund and infrastructure expenditures, and report its finding to the City Council prior to the City Council' s adoption of the ensuing fiscal year budget. (ii) conduct a semi-annual review and performance audit of compliance with Charter Section 617 (b)— Infrastructure Fund of and report its findings to the City Council prior to the City Council's adoption of the ensuing fiscal year budget. T TA GK �N`,"� E s: G �1 r CITY OF HUNTINGTON BEACH Interdepartmental Memo TO: Fred Wilson, City Administrator Pat Dapkus, Sr. Analyst, Administration Jennifer McGrath, City Attorney FROM: Joan L. Flynn, City Clerk DATE: March 10, 2010 SUBJECT: Charter Initiative Calendar and Estimated Costs for November 2, 2010, Election In response to requests for costs and deadlines for the Charter Initiative to be placed on the November 2010 ballot, I am providing the following information: Costs According to the ROV's last estimate, which I received on December 21, 2009, the estimate for each initiative is approximately $8,500. Please note that this is for a normal size initiative with a title, 75 word description, an impartial analysis, arguments and.rebuttals. This also includes the translation of the components into Korean, Vietnamese, Chinese, and Spanish (the four languages required by law due to our population mix). Any other languages requested by the city would be an extra cost. The $8,500 estimate includes printing and postage for the sample ballot and canvassing (counting) the votes. This projected cost does not include any costs the city would incur such as advertising in the newspaper (required) and the translations associated with those newspaper ads in four foreign language papers (required by law). It also does not include staff time for the impartial analysis by the City Attorney, or any other city staffer's work on the initiative. The cost would increase if the text of the charter is included. Election Deadlines July 19, 2010 Latest Council Meeting Date for Resolution Calling for Charter Initiative August 2, 2010 Deadline for Arguments For and Against Measures and Impartial Analysis August 3-12, 2010 Public Review period for Measure Text, Impartial Analysis and Direct Arguments August 11, 2010 Last Day to Withdraw Measures from Ballot August 12, 2010 Last Day for Rebuttal Arguments. August 13-22, 2010 Public Review Period for Rebuttal Arguments August 23, 2010 Last Day for Court Ordered Changes. November 2, 2010 Election December 6, 2010 Election Results Certified at City Council Meeting This is a listing of the drop-dead dates. If the Council adopts a resolution calling for the Charter Initiative earlier than July 19th, then the other deadline dates will shift earlier too. There are 14 days between calling for an Initiative and the final date for submittal of Arguments. There is a 10-day period for public review with all Rebuttals due no later than the 10th day. And, there is another 10-day public review period of the Rebuttals and an opportunity for court action, if challenged. -1- 3/11/2010 11:42:00 AM i F r L-..._.._.-...._..._._..___......__._,.._._._....-_.._._--__.___-...._-.__.._..._ _.__.._-_._._._..._,_.._.....__..__._.__.__._.__.._.....___-._-__...�,_.�._.-_-.._._ A Tuesday., March 2 2010, 6:00 PM City Hall, - l. Roll Call: Jerry Bame, Ralph Bauer, Mark Bixby, Patrick Brenden, Shirley Dettloff, Dick Marlow, Gregory Hartnett, Marijo Johnson, Gary Kutscher, Joe Shaw, Ray Silver, Sharie Sneddon, Tim Stuart, [have Sullivan, Shane Whiteside ll. Public Comments: An opportunity for the public to comment on any item of interest: either in general or specific to this agenda, that is within the subject matter or jurisdiction of the Commission. Comments will be limited to no snore than 3 minutes. S eakers are encouracied to submit their comments in writin . Each Commission Member will receive a Copy of all the submitted comments. ill. Approval of the Commission minutes from February 18 meeting. IV. Charter Section 617-- infrastructure— Review of the City Attorney's legal opinion on the use of the 1 % Infrastructure set aside. Discussion on potential amendments V. Charter Section 612— • Staff Presentation and request on a proposed additional amendment to Charter Section 612 (c)to state that Section 612 (a) and 612 (b) shall not apply; "to renewable energy projects that do not impact open space,"—Aaron Klemm • Recommendation by Commissioner Bixby to amend Huntington Beach Charter Section 62 to add new public vote trigger to the list in section 612(a) when entering into any forma of agreement which results in reduced public; recreational opportunities. VI. Review of the City.Charter as a whole with legislative draft notation of changes recommended thus far by a straw vote of the Charter Review Commission—McGrath - Sonensein VIL Commissioner Requests: Questions, comments, or suggestions for discussion at a subsequent meeting of the Commission dill. Adjourn to the next regular meeting scheduled for Tuesday Mar 16 at 6 PM in City Hall Room, B Attachments: 1. Minutes from the February 18 meeting 2. Staff report on the proposed new exemption to Charter Section 612 3. Commissioner Bixby's Recommendation for an amendment to Charter Section 612 . Memo from the Public Works Commission dated 2/25/10 with recommendations for amending Charter Section 617. 5. Material on prevailing wage from Commissioner Silver. * Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. ATTACHMENT # 1 l E . f ACTION MINUTES Thursday., 1 1. Roll Call: Jerry Pgme, Ralph Bauer, Mark Bixby, Patrick Brenden, Shirley Dettloff, Dick Marlow, Gregory Hartnett, Marijo Johnson, Gary Kutscher, Joe Shaw, Ray Silver, Shrie Sneddon, Tim Stuart, Dave Sullivan, Shane Whiteside All present except Brenden, Johnson, Kutscher—Sullivan arrived after taking of the roll. ll. Public Comments: n opportunity for the public to comment on any item of interest, either in general or specific to this agenda, that is within the subject matter or jurisdiction of the Commission. Comments will be limited to no more than 3 minutes. eskers are encoura ed to submit their corn t ents in writin . Each Commission Member will receive a co of all the submitted comments. Doug Mangione thank the Commission for considering the request to include a prevailing wage provision in the Charter. He asked that the Commission reconsider their decision as they make their final recommendations. Ill. Approval of the Commission minutes from February 2 meeting. On motion from Bixby, second by Dettloff the minutes were approved as submitted 12-0-3 IV. Charter Section 302—Compensation The Commission has not made a final determination on amending the Council Compensation section of the Charter. Additional information was requested. After a brief discussion, on a motion by Commissioner Sneddon seconded by Commissioner Dettloff, the Commission voted to keep Charter Section 302 as is. 12-0-3 V. Charter Section 31 —Conflict of Interest A Commissioner request had been made and never resolved on adding language to prohibit elected officials from participating in labor negotiations. Commissioner Dettloff commented that the question of elected department heads taking part in labor negations had been discussed previously, but that the question had not been resolved. The concern she and others expressed was the potential conflict in the fact that the elected department heads receive campaign contributions from labor unions. Following a lengthy discussion and several suggestions, Commissioner Silver made a motion, seconded by Commission Sneddon to add to either Section 313, 307 (Non-Interference) or separately to sections 309, 310, &311 the following provision: Elected Department Heads shall not directly participate as a member of the city's labor negotiating team. The motion carried 8-4-3 (Stuart, Harnett, Bixby. & Shaw—NO) VI. Staff Presentation on Charter Section 612—Measure C VII. Charter Section 612 -The Commission has requested that staff return for the following on Measure C * Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. Charter Review Agenda—02/18/10 Page 2 Optional language for including the City Council action taken on July 11, 1994 (currently at the end of the Charter index) into Section 612 of the Charter A motion was made by Commissioner Bauer, seconded by Commissioner Dettloff to add language to Section 612 of the Charter indicating when a Measure C vote should occur in the process as follows: A Measure C vote is required after the appropriate environmental assessment has been completed. A substitute motion was made by Commissioner Sullivan, seconded by Commissioner Shaw to add to take a Measure C vote after the appropriate environmental assessment has been completed and that the a professionally prepared conceptional estimate of the cost for the project and a description of the project be completed prior to placing it on the ballot. The substitute motion carried 11-1-3 (Bixby— NO) * Optional language for exempting from a Measure C vote repair, replacement., and/or maintenance of sewer, water, water quality, and storm drain facilities * Optional language and a rationale for exempting from a Measure C vote underground city structures Motion by Commissioner Bauer, second by Commissioner Silver to add the following exemptions to Charter Section 612 (c): ® to above ground city [public works] utility structures under 3,000 square feet, and ® to city [public works] underground structures if park or beach use is not impeded; and • to any city [public works] construction, maintenance or repair mandated by state or federal law The motion carried 9-3-3 (Sullivan, Shaw, & Bixby— NO) • Recommendations for an appropriate monetary minimum fora Measure C vote with options for indexing that amount A motion was made by Commissioner Bauer, seconded by Commissioner Dettloff to amend Section 612 (b) of the Charter to change the amount that triggers a Measure C vote from $100,000 to $161,000. The motion carried 10-2-3 (Shaw, Bixby— NO) Commissioner Stuart made a motion, seconded by Commissioner Sullivan to add language to the Charter indexing the trigger for a Measure C to the Consumer Price Index. Wording for a Commission recommendation to the City Council for requiring notification of residents in the surrounding area when a project below the Measure C threshold is planned for a city park or beach. A motion was made by Commissioner Shaw, second by Commissioner Dettloff that a non- Charter recommendation be forwarded to the City Council as follows: The city adopt: 0 A procedure for an independent cost estimate to determine if a public or private project would require a Measure C vote Charter Review Agenda—02/18/10 Page 2 ® A Public Notification processes for every city-owned or city-operated park or beach development project not requiring a Measure C vote, and with a cost of$10,000 to $161,000. • A notification process similar to that currently used by Community Services and Planning Departments (mail public notice to property owners w/in 300' of site and public notice in newspaper) The motion carried 12-0-3. A motion was made by Commissioner Shaw, seconded by Commissioner Bixby that a non- Charter recommendation be forwarded to the City Council as follows: There be a process to verify the cost of improvements covered under Measure C by: ® The Public Works Dept. retaining an as-needed professional estimating consultant - ® Requiring project applicants to submit their construction cost estimates to Public Works for review and pay an associated fee The motion carried 12-0-3. A motion was made by Commissioner Bauer, seconded by Commissioner Dettloff provide an exemption to a Measure C vote for recreation amenity that replaces existing recreation amenity provided it say within the same square footage and as long as it is consistent with the existing use and does not change a passive use to an active use. The motion carried 12-0-3. Commissioner Bixby to bring back his recommendation on Charter Section 612 at the next meeting. gill. Charter Section 61 —Contracts—The City Attorney is to provide feedback on potential issues with requiring a local preference on city contracts. The City Attorney reported that a local preference would not be permissible based on current case law. No action was taken. IX. Charter Section 703—The Commission has requested that staff return with optional language for changing the number of signatures required to place a citizen initiative on the ballot Commissioner Shaw made a motion, seconded by Commissioner Bixby to approve an amendment to Charter Section 703 to change the number of signatures to place an initiative on the ballot to require the number of signatures be set by using the average number of ballots case in the two preceding general municipal elections (one presidential and one non- presidential). The motion failed 3-9-3 (Bixby, Shaw, & Dettloff— NO). X. Commissioner Requests: Questions, comments, or suggestions for discussion at a subsequent meeting of the Commission XI. 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PV LAYOW --t.EX L— _.._. 0Fl�37t3 TA(C LAYOUT FOR NB�fS 6t-0M l?Da+TiD AT 1 MG GOLDtWEST STET _ ;t D LOCA.10N MOUNTING ftOFrVFANFIS . r wa _APTV", rr " ,g TOTAL#OF IPA'PANELS r s r II�YI a ,• x _ s e •MVk ' r,r ...v�,"„a""a �tl�,"Rt�ls�� a o., r ,��5 rn — Y COMMUMTy CEMS LAYOUT �F P7To-a fWc d,{S,Y(5T F I 6R7WiFRDY G0hfi'S'lUNIfY,C ER L"-A,T D A-T 7,016 NORM t 1V, ppyyyy7 y s 4 El, m x � REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 03/02/2010 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner l � SUBJECT: Close the "lease" synonym loophole in charter section 612(a) (Measure C) Statement of Issue: In the past the city has permitted wireless communications facilities to be constructed in parks by calling the agreements "site licenses" in order to avoid the Measure C 612(a) requirement for leasing agreements to be put to a vote of the people. My proposal tightens up this loophole by requiring a vote of the people for "any form of agreement" which reduces public recreational opportunities. Recommended Action: Motion to: Amend Huntington Beach charter section 612 to add new public vote trigger to the list in section 612(a) when entering into any form of agreement which results in reduced public recreational opportunities. Analysis: I first brought this proposal before the commission at the December 15, 2009 meeting. At that meeting, Community Services staff stated that they were not opposed to my proposal, but ultimately no action was taken as all of the Measure C proposals were deferred to a future date. Section 612(a) forces a public vote whenever public utilities, parks, or beaches are "leased" (emphasis added) in whole or in part: "No public utility or park or beach or portion thereof now or hereafter owned or operated by the City shall be sold, leased, exchanged or otherwise transferred or disposed of unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the - 1 - 2/21/2010 11:37 AM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 03/02/2010 electors voting on such proposition at a general or special election at which such proposition is submitted." This finite list of actions leaves a loophole whereby the city can evade a Measure C vote by labeling the action something other than a sale, lease, exchange, transfer or disposal. The city has exploited this loophole to lease portions of certain parks to wireless companies for cell phone towers by calling such agreements "site licenses". It is telling to note that the cell phone company documents for these agreements refer to them as "leases" and not "site licenses". Thus it is obvious that the city is playing semantic games to avoid the word "lease" to avoid Measure C votes. I propose to close this loophole by adding an additional vote trigger to section 612(a) — "...or any form of agreement which results in reduced public recreational opportunities...". It is not my intent to abrogate any existing agreements, or to prevent the renewal of such existing agreements. This will only apply to future agreements. Note that agreements that DO NOT reduce public recreational opportunities are exempt from this vote trigger. Thus, for example it would be permissible to add a cell antenna to an existing lighting pole or other structure (does not impact any recreational opportunities), but it would not be permissible to add a new cell tower in the middle of a grassy play area (reduces recreational opportunities) without a vote. Finally, note that this proposed additional language does not create any new exemptions to the section 612(b) size/cost vote trigger. Any construction or agreement that did not reduce public recreational opportunities would still be subject to the size/cost trigger. -2- 2/21/2010 1 l:37 AM 4 � 4 " ®J CITY OF HUNTINGTON BEACH Interdepartmental Communication TO: FRED WILSON, City Administrator FROM: JENNIFER MC GRATH, City Attorney DATE: February 24, 2010 SUBHCV: Charter Section 617 (RLS 05-199) BACKGROUND In 2002 the City Charter was amended to add new Section 617 thereto, entitled ".Infrastructure Fund." Section 617(b)reads as follows: Section 617. INFRASTRUCTURE FUND. (b) Revenues placed in the Infrastructure Fund shall not supplant existing infrastructure funding. The average percentage of general hind revenues utilized for infrastructure improvements and maintenance, for the five- (5) year period of 1996 to 2001, is and was 14.95%. Expenditures for infrastructure improvements and maintenance, subsequent to 2001, shall not be reduced below 15% of general fund revenues based on a five- (5) year rolling average. In order to implement Section 617(b), the City Council has yearly budgeted at least 15% of General Fund revenues for infrastructure purposes (the "Infrastructure Expenditure"). In past budgets, the Infrastructure Expenditure has included debt service for infrastructure projects. This debt service includes both principal and interest payments. ISSUE Does the inclusion of infrastructure related debt service within the Infrastructure Expenditure violate Charter Section 617? ANSWER No. 05-199 444o; Fred Wilson February 24, 2010 Page 2 ANALYSIS Except-as otherwise provided, the Charter vests all powers of the City in the City Council. (Charter, Section 301.) The adoption of the budget is a legislative function. A court is generally without power to interfere in the budgetary process. (Scott v. San Bernardino, 44 Cal. App. 4th 684, 698, 52 Cal. Rptr. 2d 161 (1996).) Pursuant to the Charter, the general grant of power shall be construed broadly in favor of the City. The specific provisions enumerated in the Charter are intended to be and shall be interpreted as limitations upon the general grant of power and shall be constnued narrowly. (Charter, Section 104.) Since Section 617(b) provides a limitation on the Council's broad power to formulate and adopt the budget set forth in the other sections of the Charter, the Charter itself requires that this limitation be narrowly construed. As the Supreme Court has repeatedly observed, "If the language is clear and unambiguous there is no need for construction, nor is it necessary to resort to indicia of the intent of the Legislature (in the case of a statute) or of the voters (in the case of a provision adopted by the voters). (In re Lance W. (1985) 37 Cal.3d 873, 886; State Board of Education v. Levit (1959) 52 Cal.2d 441, 462.) Since the language of Section 617 is clear and unambiguous, we presume the voters intended the meaning apparent on its face and our inquiry ends there. (Lesher Communications, Inc. v. City of Walnut Creek (1990) 52 Cal.3d 531, 543; Woo v. Superior Court, supra, 83 Cal.AppAth at p. 975.) Section 617(b) contains no ambiguity or conflict. It establishes a single restriction on the Council's budget authority; namely, it mandates that 15% of General Fund revenues, based on a rolling five year average, be earmarked for the Infrastructure Expenditure. There is no further limitation contained in Section 617(b) related to the exclusion of infrastructure related debt service from the Infrastructure Expenditure. Thus, including infrastructure related debt service as a component of the Infrastructure Expenditure is a policy matter within the City Council's budgetary authority to determine, and does not violate the Charter. CONCLUSION Adoption of the budget is a discretionary policy matter within the legislative authority of the City Council. Charter Section 617(b) limits this discretion by requiring that at least 15% of General Fund revenues be spent on the Infrastructure Expenditure. "There is no additional requirement that infrastructure related debt service be excluded from the Infrastructure Expenditure. Such a requirement does not appear in the Charter, and would, in effect, impose a larger restriction on the Council's budgetary authority than the one approved by the voters. As a policy matter, the 44407 Fred Wilson February 24, 2010 Page 3 City Council may choose to exclude infrastructure related debt service from the Infrastructure Expenditure,but such a decision is not required by the Charter. qYY JENNIFERMCGRATTI, City Attorney /pda 44407 CITY, OF -IUNTINGTON BEACE TO:, Chairman Harlow and the Charter Review Commission FROM: Chairman Siersemai and the Public Works Commission BATE: February 25, 2010 SUBJECT: City Charter Section:.617 infrastructure Fund With respect.to the.Charter Commission's direction not to modify paragraph (b) of Section 617 Infrastructure Fund. the Public-Works Commission (PWC) proposes additional language to ensure oversight of the average fifteen percent (15%) expenditure of general fund revenue on infrastructure. As a related action"; the PWC supports additional duties while acting in the capacity of the Citizens Infrastructure Advisory Board. ,CP�ar�ges to the Municipal_Code.will be processed through the City,Attorney`s offite and the City Council Proposed modifications are incorporated in this,'mem`o with italicized and underlined text to show;insertions. City Charter Section 617 INFRASTRUCTURE FUND (c)The:"City CouncIf shall by ordinance establish a Citizens Infrastructure Advisory Board to conduct an annual'(eviEvWlzind.pertorrnahce audit of the Infrastructure Fund and infrastructure e(genditirrs; and report"if +findjrigs o the City Council prior to adoption of the°followipg fiscal- year budget. Municipal al Cade Chaoter 1 I f F►t BL1G R S"C BSI Section 2.1'1'1.030 Duties i) Acting in'the''capacity,of the Citizens Infrastructure"Advisory Board: i) conductan arinuaif"review and performance :audit of the Infrastructure Fund' and report its findings.to.the" City Council prior to:the City Councils adoption of the ensuing",fiscal"year.budget., (NoP C ange) ii)" conduct a serni=annual reiriet�"and";perforrnance audit'of comoliance with Section 617 Infrastrudure Frinc"'h of`M6 City Charter and report its t ndin "s to the City C ouncil prior to the C ty Gounsil°'s adoption of the,..qnsqiqg,-flscat year budget. Representatives, from�Ihe'OWb and;"the ,Public Works Department will attend the scheduled Charter Review Ccirrrxissivn meetings to further discuss this section. Please let us know if you nave questions or requirb j6rther-infbrmation.' i haefSiers ma; Chairman f S1LD:jg Cc: lVlayt�r Creep and City Council : Fred Wilson', City.Administrator -vVM \ \ 2, ENT INFORMATION ON PREVAILING WAGE FROM COMMISSIONER SILVER: 1 . A Rough Estimate of Cost for Paying Prevailing Wage 2. CA Prevailing Wage Study 2004 3. Industrial Labor Board: - Impact of Prevailing Wage 4. Wage Comparison Analysis BTRUCMREaimn. A Rough Estimate of the Costs of Paying Prevailing Wages for Construction of Affordable Mousing DRAFT 2/2005 A "back of the envelope" estimate of the impact of paying prevailing wages on redevelopment financed housing construction was made using an economic impact study commissioned by CRA and studies and cost estimates available on the Internet. No additional research was done. Note that prevailing wage is set regionally,having a varying impact on the cost of redevelopment financed housing construction. The following estimate is for the state of California. The analysis shows that prevailing wage has a significant impact on the cost and production of affordable housing. However, not paying prevailing wage may result in public and private sector costs that significant off-set potential savings realized. I. Estimate of the Impact of Prevailing Wage on Redevelopment Agency housing construction: • The 2004 CED study estimates that RDA construction spending for 2002-03 was $2,293 million.' • According to the same study, 68 percent of redevelopment-financed construction went towards housing in 2002-2003, or$1,559 million. • Cost of affordable housing due to prevailing wage is estimated to have increased by 11%2 to 30%3. • This means from $171 million to $467 million might have been available for affordable housing. • An unknown amount of public funding in the form of various publicly funded incentives were needed to compensate for the higher costs of development to encourage public-private partnerships. One commentator noted that: "Without increased funding from the state, the number of projects redevelopment agencies will be able to fund in the future may drop by two thirds."4 Center for Economic Development,CSU Chico,The Impact of Fiscal 2002-03 Community Redevelopment Agency Activities on the California Economy,December 4,2004. 2"Impact of Prevailing Wage Rate Requirements on The Costs of Affordable Housing In California"The California Institute for County Government,June 9,2004. This research was supported by funds from the California Coalition for Affordable Housing(CCAH). 31-ittle Hoover Commission,Rebuilding The Dream:Solving California's Affordable Housing Crisis,May 2002 11ttD:!/WWN .1hc.ca.gov Ihedii/165rreport165.1)df d Impact Of New Prevailing Wage Law On Development In California by Joseph E.Petrillo KOREK LAND COMPANY,INC. Prepared for CRA by Gus Koehler, Time Structures February 2,.2005 II. Estimated of cost born by developers and the public when prevailing wage is not paid:5 • The payment of prevailing wages often reduces costs because of the increase in productivity, the decrease in job site injuries, and savings derived from significant reductions in future maintenance because of the higher quality of the original construction. • The failure to pay prevailing wages and benefits creates a direct cost to taxpayers because it shifts the cost of health care and pensions from employers to public health systems. • The failure to pay prevailing wages creates direct costs to taxpayers and insurers because of the significant increase in job site injuries created by less- well trained workers. • One study concluded that if the federal Davis-Bacon Act [which requires prevailing wage] was repealed that federal tax revenues would drop by $1 billion per year, and that there would be 76,000 additional workplace injuries in construction annually,with more than 675,000 work days lost each year. These increases would be felt in increased workers compensation costs and costs placed on public health systems by workers without health and pension benefits.6 State Building and Construction Trades Council in California,Prevailing Wages in Construction, http://www.sbctc.org/default.asp?i d=974&pagetype=about 6 Phillips,Peter,Ph.D.,et at,University of Utah,Losing Ground:Lessons from the Repeal ofNine'Little Davis-Bacon'Acts,February, 1995. Prepared for CRA by Gus Koehler, Time Structures February 2, 2005 Impact of Prevailing wage Rate Requirements on The Costs of Affordable Housing In California Prepared by Matthew Newman Shawn Blosser Hilary Haycock The California Institute for County Government June 9,2004 This research was supported by funds from the California Coalition for Affordable Housing (CCAH). Executive Summary......................................................................................3 Introduction........:.......................................................................................... 5 Redefining..Public Works"...................................................... ............................................ .................7 Redefining..Public Funds'.....................................................................................................................7 How Do State and Federal Methodologies Compare?.......................................................................... 10 Implementation Difficulties.................................................................................................................. I 1 OurAnalysis................................................................................................ 12 Higher Wages for Construction Workers............................................................................................. 14 Higher Costs for Developers................................................................................................................ 14 Lower Employment in the Construction Trades................................................................................... 14 ContractorsExiting the Market............................................................................................................ 15 SubstitutionEffects.............................................................................................................................. 15 Existing Literature...................................................................................... 15 Wap_e Differential Analysis ........................................................................ 18 Data Sources for Wage Differential Analysis....................................................................................... 19 Analysisof Wage Data.........................................................................................................................21 California Commercial Prevailing Wage Rates vs.Market Wage Rates............I.......................... .......21 Commercial Prevailing Wage Rates:Davis-Bacon Federal Prevailing Wage Rates vs.DIR State PrevailingWage Rates..........................................................................................................................24 Davis-Bacon Federal Prevailing Wage Rates:Residential vs.Commercial Rates,...................... .......25 Discussion of Wage Differentials................. .......................................................................................27 Depression Analysis..........................:......................................................... 28 Data Sources for Regression Analysis..................................................................................................28 Summary Statistics.for Variables Used in Regression Analysis...........................................................30 RegressionResults................................................................................................................................32 Cost Effects Regression Analysis.........................................................................................................32 Discussion of Regression Results.........................................................................................................36 Deduction in Number of Affordable Units...............................................36 Conclusion ................................ ............37 WorksCited................................................................................................. 39 Appendices...................................................................................................41 Prepared by CICG 2 6/9/2004 Executive Summary On January 1, 2004 California implemented new rules requiring that virtually all affordable housing projects built with public support pay workers a specified minimum wage known as the"prevailing wage." These prevailing wage rates are substantially higher than market wages. In response to these changes, affordable housing advocates, developers, and local goverrunents have expressed concern that the prevailing wage requirements will increase costs and reduce the supply of affordable housing units. In spite of the importance of the prevailing wage issue, relatively little research has been conduced that would allow policy makers to assess the impact of these requirements on bath the costs to construct and the supply of affordable housing units. This study seeks to fill this gap in the research by answering three important questions about the prevailing wage requirements: 1. How do prevailing wages compare with market wages? 2. How much will construction and total project costs increase as a result of prevailing wage requirements, and how will the impact of these requirements vary across the state? 3. How many fewer affordable units will be produced as a result of cost increases stemming from prevailing wage requirements? Our research indicates that prevailing wages are substantially higher than market wages. In fact, California's published prevailing wage rates are about one-third to one- half higher than comparable market wages. Prepared by CICG 3 6/9/2004 Our regression analysis allowed us to directly compare costs for prevailing wage projects to costs for comparable projects built with market wages. We found that the prevailing wage requirements increased overall project costs by about 11 percent, even while controlling for other factors known to influence costs such as regional variations in construction costs and characteristics of the structures themselves. We further found that the impact from these expanded prevailing wage requirements varies across the state, with some areas expected to experience cost increases of as little as six percent while others will likely experience increases of more than 15 percent. Finally, we estimate that, as a result of the cost increases stemming from prevailing wage requirements, significantly fewer affordable units would be produced in California each year. Specifically, we estimate that more than 1,400 fewer units would have been subsidized by the California Tax Credit Allocation Committee(TCAC) in 2003 had the new prevailing wage requirements been in effect at the time. There is some anecdotal evidence of undersubscription to the tax credits and tax exemption programs run by the California Debt Limit Allocation Committee(CDLAC) and TCAC. It is unclear whether that is a result of confusion regarding the transition to prevailing wage requirements for residential construction, or the beginning of a longer term trend of even further decreases in the production of government subsidized affordable housing. Prepared by CICG 4 6/9/2004 Introduction Prevailing wage legislation requires that construction workers building government-funded projects be paid specified minimum wage rates,typically the rates paid to unionized workers for the relevant trade and region. Both the federal government and the state of California have prevailing wage laws on the books. Proponents of prevailing wages argue that these requirements increase wages and ensure a middle class standard of living for workers, while opponents believe that they needlessly increase costs for publicly funded construction projects. Recently California expanded the scope of the state's existing prevailing wage legislation, causing many previously exempt categories of publicly financed affordable housing projects to be governed by prevailing wage requirements. This recent legislation has reopened the debate about the economic and public policy consequences of prevailing wage laws. Although prevailing wage requirements have important, far reaching implications for wages paid, costs incurred, and number of units completed, relatively little research has been conducted that would allow policy makers to assess the impact of these requirements. This report seeks to address several important questions about prevailing wage requirements. First, we discuss the likely effects of prevailing wage requirements on labor markets and affordable housing developers. Second, we identify the wage differential between market wages and prevailing wages. Finally, we analyze the effect of prevailing wages on the costs of building affordable housing units in California and estimate the likely effect on the supply of these units going forward. Prepared by CICG 5 6/9/2004 Background: Origin of Prevailing Wage Laws Congress passed the Davis-Bacon Act, the federal prevailing wage law, in 1931. The purpose of this act was to protect the livelihood of workers during the Great Depression from the bidding process for federal construction projects,which encouraged contractors to lower wages in order to win bids. The Davis-Bacon Act applies to all projects over$2,000, and after 1964 required contractors to provide specified fringe benefits as well. The Secretary of the Department of Labor is responsible for determining both the prevailing wage rates and the minimum fringe benefits to be paid. Following the enactment of the federal law, a number of states passed their.own versions of the Davis-Bacon Act. California passed a state prevailing wage law in 1931, the same year as the federal bill. Administered by the Department of Industrial Relations (DIR), the California statute applies to a broader spectrum of publicly funded projects than the federal bill, including demolition work,job site refuse hauling, street and sewer construction, and building maintenance for public utilities.' Recent Changes to California's Prevailing Wage Laws In 2001 the California legislature passed Senate Bill 975, which expanded the scope of the state's prevailing wage regulations. SB 975 defined the statutory phrase "paid for in whole or part out of public funds',2 even more broadly to encompass indirect financial assistance. Prior to the passage of SB 975,public entities frequently were able to indirectly fund private projects without requiring contractors to pay local prevailing wages. These indirect funding mechanisms included tax credits, gifts of land, and fee waivers, among others. ' See Theiblot 1995. See SB 975 Legislative Counsel's Digest. Prepared by CICG 6 6/9/2004 SB 975 was in part a response to several recent DIR administrative decisions applying prevailing wage requirements to projects receiving indirect funding from public agencies. These decisions were inconsistent with previous DIR decisions exempting such projects from prevailing wage requirements.3 The apparent change in DIR policy lead to confusion among developers, government sponsors of affordable housing projects, and construction workers alike. The California legislature opted to resolve this ambiguity by requiring all projects built directly or indirectly with public support to use prevailing wages. Affordable housing advocates, developers, and local governments opposed this change, arguing that it would increase costs and reduce the supply of affordable housing. The California law was amended again in 2002 with Senate Bill 972, which provided limited exemptions for certain types of affordable housing projects but did not fully address the concerns of affordable housing proponents. Redefining "Public Works" In addition to increasing the number of affordable housing projects that were required to pay prevailing wages, SB 975 expanded the definition of"public works' from "construction, alteration, demolition, or repair work"4to include installation. This change resulted in a larger number of infrastructure projects coming under the jurisdiction of prevailing wage laws. Redefining "Public Funds" The original prevailing wage law required prevailing wages for construction projects"paid for in whole or in part out of public funds."The definition of"paid for 3 SB 975 took effect January 1,2002-SB 972 took effect January 1,2003,and subsequently amended some of the provisions of SB 975. 4 See SB 975 Legislative Counsel's Digest. Prepared by CICG 7 6/9/2004 with public funds"5 generally included projects directly funded with public money. This definition excluded government grants, loans, and other indirect forms of government financial assistance to private projects, creating an exemption in the prevailing wage law which allowed a number of projects receiving indirect public financial assistance to avoid prevailing wage requirements. Under SB 975, each of the following types of public financial assistance triggers prevailing wage requirements: ® Money paid on behalf of public agencies directly to public works contractors, subcontractors, or developers. ® Construction work done directly by public agencies. o Transfer of an asset for less than fair market price.. ® Reduction or elimination of fees, costs,rents, insurance, loans, interest rates or other obligations normally required. ® Money to be repaid on a contingent basis. ■ Credits against repayment obligations.6 Many private redevelopment and affordable housing projects are now required to pay prevailing wages under the broadened definition of what constitutes payment with public funds,as well as most other private projects receiving some public agency assistance. 'See SB 975 Legislative Counsel's Digest. 6 See Goldfarb and Lipman,2001. Prepared by CICG 8 6/9/2004 Table l: Exemptions to Prevailing Wage Requirements Exemptions Provided by SB 975' • The sale of land for fair market values. • If the government reimburses a private developer for normal public costs. In some instances,take-out loans to private Public subsidies that are de mimmis in context of • developers that take place after construction is • the project. completed. The government can also construct public Residential projects undertaken independently of p infrastructure for other types of private projects, public agencies or housing authorities. This allows • cities and counties to build public infrastructure without requiring those private projects to pay with prevailingwages)for.private projects exempt prevailing wages,as long as.the government from prevailing wages) P p J p "maintains no proprietary interest in the overall project.' The construction or rehabilitation of affordable housing units for low-or moderate-income Affordable housing projects financed through • individuals with only specific public funds mortgage revenue bonds,or government low- governed by the Health and Safety Code and other income housing tax credits. [1] private funds. Exemptions Provided by SB 9722 • Self-help housing where homebuyers participate in • Financial assistance to individual homeowners. at least 500 hours of construction work. Nonprofit work on emergency or transitional Rehabilitation or expansion of temporary or • housing operated on at least 50%nonpublic • transitional homeless housing costing under funding. $25,000. Public below market interest rate loans for projects where 40%of units are dedicated for at least twenty years to • low income households(below 80%of area median income)where projects do not receive any government grants or non-loan assistance See Goldfarb and Lipman,2001. See Goldfarb and Lipman,2002. How Are Prevailing Wages Calculated? Prevailing wage rates are determined for each construction trade and region of the state by the Department of Industrial Relations (DIR). In addition, the DIR is responsible for determining separate rates for residential and commercial projects. To determine these prevailing wage rates,the DIR uses a modal method, meaning the prevailing wage is set Prepared by CICG 9 6/9/2004 to equal the wage paid to the majority, or greatest number, of workers. California's Labor Code states: The basic hourly wage rate being paid to a majority of workers engaged in the particular craft, classification, or type of work within the locality and in the nearest labor market area, if a majority of the workers is paid at a single rate. If no single rate is being paid to a majority of the workers, then the single rate being paid to the greatest number of workers, or modal rate, is prevailing.7 In practice the prevailing wage rate often equals the wage rate determined by collective bargaining agreements. Indeed, the California's Labor Code explicitly states that these union wage rates are to be considered in setting the prevailing wage: The director shall establish an alternative rate, consistent with the methodology for determining the modal rate, by considering the appropriate collective bargaining agreements, federal rates, rates in the nearest labor market area, or other data such as wage survey data.8 How Do State and Federal Methodologies Compare? The state methodology for determining prevailing wages is very similar to the federal process outlined in the Davis-Bacon Act. The federal government also uses a modal method to calculate prevailing wages. And in practice, federal prevailing wage rates are very similar to those determined by the state (see the section"Wage Differential Analysis"below). If no one wage rate is found to be prevailing (i.e. paid to 51 percent or more of workers),then a weighted average is used. As the Code of Federal Regulations states: The prevailing wage shall be the wage paid to the majority (more than 50 percent) of the laborers or mechanics in the classification on similar projects in the area during the period in question. If the same wage is not paid to a majority of those employed in the classification, the prevailing 7 California Labor Code,Section 1773.9(b)(1). 8 California Labor Code,Section 1773.9(b)(1). Prepared by CICG 10 6/9/2004 wage shall be the average of the wages paid, weighted by the total employed in the classification.9 Like the DIR generated prevailing wages,the U.S. Department of Labor often finds negotiated wages to be prevailing. The mode wage rate for a particular trade and region is determined based on a survey of voluntary submissions by contractors. Market wages tend to vary slightly within job classifications,but negotiated wages apply to large numbers of workers, making it more likely that a negotiated wage rate will be the most commonly paid, and thus prevailing. See the Wage Differential Analysis below for an m- depth comparison of wage rates, and Appendices A and B for more information on how prevailing wages are calculated at the state and federal levels. Implementation Difficulties Both the state and federal governments determine prevailing wage rates for.a number of classifications of construction jobs within two broad categories: residential construction and commercial construction. Residential construction wages are generally lower than those in commercial construction. The DIR uses the same process to determine prevailing wage rates for both residential and commercial construction.Commercial prevailing wage determinations are blanket determinations for specific localities and worker classifications, and are public information available to all potential bidders. However,unlike federal residential prevailing wage determinations which apply to broad regions,California residential prevailing wage determinations are made on a project-by-project basis and are not made available for public review. 9 Code of Federal Regulations Title 29,Pt. 1.2. Prepared by CICG 11 6/9/2004 Potential bidders for residential projects covered by California's prevailing wage law must request prevailing wage determinations from the DIR. These determinations can take up to 90 days or longer to complete. In the absence of a residential wage determination, (the generally higher) commercial prevailing wage rates must be applied. In addition, the implementation of SB 975 has greatly increased the volume of requested residential prevailing wage determinations,which has increased the time it takes for the DIR to complete requests for prevailing wage rate detenminations. Because of the difficulty in obtaining residential wage rates from the DIR, many builders report that they must in practice rely on commercial prevailing wage rates for the majority of residential projects. Our Analysis This study attempts to identify the cost impact of prevailing wage requirements on government funded construction projects. Specifically, we examine the impact of prevailing wage requirements on the construction of affordable housing units in California, examining the wage differentials between prevailing wages and market wages, the impact of prevailing wage requirements on construction costs, and ultimately, the impact of prevailing wages on the number of affordable units that are produced. Our first analysis is a wage differential analysis, which examines the difference between prevailing wages and market wages. We also examine the difference between California prevailing wage rates and federal Davis-Bacon wage rates. Finally, we analyze the difference between residential prevailing wage rates and commercial prevailing wage rates. Prepared by CICG 12 6/9/2004 In addition to the wage rate differential,however, there are a number of additional influences on construction project costs, which may act to mitigate or exacerbate the effects of wage increases on overall project cost increases. To identify the specific impact of prevailing wage requirements on construction costs, we compare a sample of projects built with prevailing wages to a comparable set of projects not subject to prevailing wage requirements. Specifically, we use ordinary least squares(OLS)regression analysis to compare various cost measures of projects that have paid prevailing wages to those that have not. This approach allows us to control for a number of factors, such as regional variations in construction costs, economies of scale associated with building larger projects, and variations in building characteristics (e.g. number of stories, size of units, etc.).Next, we use the results from our wage differential and regression analyses,to estimate the region-by-region effects of prevailing wage requirements. These results are presented in the section entitled"Regional Variation in Prevailing Wage Impact"below. Finally, we use the estimated cost impact of prevailing wage requirements on construction costs for affordable housing projects to estimate the impact of those requirements on the number of government-funded affordable housing units that will be constructed in the future. Economic Impact of Prevailing Wages There are a number of effects prevailing wage requirements may have on the publicly funded construction market, most related in some way to the potential of prevailing wage requirements to raise construction costs. These effects are briefly discussed in the following sections. Prepared by CICG 13 6/9/2004 Higher Wages for Construction Workers The most immediate impact of prevailing wage requirements is higher wages for construction workers on government-funded projects. This brings an immediate benefit to construction workers employed on publicly funded projects,but there is the possibility that increased wages may put pressure on the reach of available funding,ultimately decreasing the number of construction workers benefiting from wage increases. Higher Costs for Developers Prevailing wage laws will also likely result in higher costs for developers by raising labor and compliance costs. Prevailing wage laws not only mandate wage rates, but it has also been suggested that public construction contracts require work previously done by relatively lower paid laborers to be reassigned to other categories of higher paid workers.10 It is also possible that increases in wages paid for public works projects will lead to increases in wages negotiated by unions and in the labor market,pushing labor costs up for the entire construction industry. Lower Employment in the Construction Trades The payment of prevailing wages at a rate higher than the market rate may serve to attract better workers who are skilled and more productive. Studies have shown a link between unionization, wage increases and increases in productivity." Higher productivity may allow contractors to hire fewer workers, and in particular fewer supervisory positions,as highly trained workers tend to need less assistance and 10 See Fraundorf., 1984. 11 See Allen, 1984. Prepared by CICG 14 6/9/2004 monitoring.12 This increase in productivity would serve to partially offset the cost increases associated with higher wage rates, but it would also reduce the supply of construction jobs. Contractors Exiting the Market Requiring contractors to pay prevailing wages and to comply with the administrative burdens of the prevailing wage laws may act as a disincentive for potential bidders on public works projects. It has been suggested that public agencies are more demanding clients than those from the private sector, further raising costs and discouraging potential bidders.13 Decreased competition for federal construction projects may lead to fewer and possibly worse options, as well as increased costs for government agencies, and thus taxpayers. Substitution Effects One way contractors may act to mitigate the impact of increased wages on construction costs is to "substitute capital or other inputs for labor."14 Contractors may therefore invest in better equipment to make construction labor more productive, or choose to increase the use of prefabricated components in construction as a way to reduce the amount of construction labor needed for a given project. Existing Literature There is a considerable body of academic literature on the impacts of Davis Bacon prevailing wage requirements. Most of these studies, however, focus on non- ' See Allen, 1986. 13 See Prus, 1996. 14 Ibid. Prepared by CICG 15 6/9/2004 residential construction projects, such as schools,hospitals, and other public construction. To quantify the impact of Davis-Bacon on construction costs, these studies used various methods to define control groups. Some studies compared projects within a defined region over time periods with and without prevailing wage requirements. Others compared similar projects in regions with prevailing wages against regions without such requirements. Issues examined included the economic efficiency of such legislation,the impact on wages for construction workers, and their effect on state budgets.None of these studies,however,have focused specifically on California or the prevailing wage requirements of the state. In spite of these differences,previous studies can provide some insight into the impacts of prevailing wages on construction costs in general. Goldfarb and Morrall reviewed a number of the existing empirical studies on the costs associated with the federal Davis-Bacon requirements and concluded that although the studies to date have been faulty in many respects,there are clear indications that the act is"...unattractive on grounds of economic efficiency alone."15 Previous work by these same authors estimated substantial cost savings from using mean wage rates rather than modal rates as is currently done.16 Specific.estimates of the additional costs associated with the use of prevailing wages vary considerably across studies. Thiebolt estimated an increase of about one-half percent for prevailing wage projects.'? Gould and Bit tlingmayer later accounted for 1'See Goldfarb and Morrall, 1981. 16 See Goldfarb and Morrall, 1978, 1'See Thiebolt, 1975. Prepared by CICG 16 6/9/2004 institutional factors and inflation to estimate an increase of between 4 and 7 percent.18 Fisher and Sheehan examined bids for government contracts in a rather simplistic analysis and estimated that prevailing wage requirements in Iowa would raise construction costs approximately I percent for highways and 3.5 percent for buildings.19 Prus used data from the F.W. Dodge Company to compare govermnent construction projects across states and found costs for such projects to be 18 percent higher in states with prevailing wage requirements.20 Fraundorf, et.al. surveyed contractors for 215 randomly selected non-residential rural projects and concluded that costs for prevailing wage projects increased an average of about 26 percent.21 While such studies indicate there may be some impact of prevailing wage requirements on construction costs, their findings vary considerably and, as mentioned above, do not look specifically at residential construction for California. A recent working paper by Sarah Dunn,John M. Quigley and Larry A. Rosenthal at the University of California at Berkeley, however, does look specifically at the impact of prevailing wage requirements on the cost of residential construction in California.22 This study, funded by a grant from the U.S. Department of Housing and Urban Development and by the Berkeley Program on Housing and Urban Policy, examined the effects of recent prevailing wage legislation on the costs of subsidized low-income housing in California. The study examined 205 projects consisting of new dwellings constructed for California Low-Income.Housing Tax Credit(LIHTC)housing projects,where the funding applications were filed after January 1, 1997 and were placed in service prior to May 18 See Gould and Bittlingmayer, 1980. 19 See Fisher and Sheehan, 1985. 20 See Prus, 1996. 2 1 See Fraundorf et.al., 1984. 22 See Dunn et.al..2063. Prepared by C1CG 17 6/9/2004 2002. All of these projects received federal (and some state)tax credits through the California Tax Credit Allocation Committee(TCAC), which administers the federal LIHTC program in California. The authors applied standard econometric techniques to account for differences in building attributes, geography, financing, and developer characteristics, and found that prevailing wage requirements increased construction costs by between 9 and 32 percent. They also estimated that the implementation of such requirements will result in some 2,600 fewer units being built each year from the tax credit program alone. Wale Differential Analysis To understand how prevailing wages impact the combined cost of construction projects, it is important to understand the difference between market wages and prevailing wages. We compared wage rates for five job categories on a county-by-county basis: carpenters, electricians, drywall installers, HVAC/sheet metal workers, and plumbers. For each of these trades, data were collected for(1)market wage rates (combined residential and commercial construction), (2)Davis-Bacon federal prevailing wage rates for residential construction, (3)Davis-Bacon federal prevailing wage rates for commercial construction, and(4)California state prevailing wage rates for commercial construction.23 To calculate aggregate statistics for all of California, two estimates were constructed: (1) an equally-weighted average across all counties and(2) a population- weighted average across all counties,with each county weighted by its 2002 population. Using the data described above,three analyses were performed. The first analysis compared state commercial prevailing wage rates to average market wage rates, and 03 As mentioned above,the DIR determines prevailing wage rates for residential construction on a project- by-project basis and does not publish these rates;thus,they were not available to be used for this analysis. Prepared by CICG 18 6/9/2004 found that for the five trades examined, the commercial prevailing wage rates are, on average, about one-third to one-half more than current market rates. The second analysis compared the same state commercial prevailing wage rates to the comparable federal Davis-Bacon commercial prevailing wage rates and found that these two rates are on average extremely close(within±2%). The third analysis compared the federal Davis- Bacon commercial prevailing wage rates to the Davis-Bacon residential prevailing wage rates, and found that the commercial rates were on average 14% to 53%higher. Data Sources for Wage Differential Analysis California commercial prevailing wage rates were collected from the California DIR's Division of Labor Statistics and Research. The rates used for this analysis represent simple wages without benefits or overtime pay.24 See Appendix A for a more detailed description of the methodology used by the DIR to calculate these wages. Market wage rates used in this analysis are the "Mean Hourly Wage" for 2002, as reported by the California Employment Development Department (EDD). The data are reported for each county, and represent the average wage rate(excluding benefits)for both union and non-union workers. The market wage rate includes both commercial and residential construction workers. The"Mean Hourly Wage" is determined based on a survey of industries and employees, and then a weighted.average of those results. See Appendix C for a more detailed description of the methodology used by the EDD to calculate these wages.25 24 The DIR data used in this analysis were downloaded on May-23,2003 from the DIR website at littl)://www.dir.ca.i,,ov,,,"DLSR,,"PWD'irdex.litii-l. '-'The data for this analysis were downloaded on May 5,2003 from the EDD website at - http:i:'����,w.c<}Imis.ca.�ovihtmitile/subie�t/accupS.l�trn. Prepared by CICG 19 6/9/2004 The population for each county was downloaded from the California Department of Finance website in June 2003.26 The figures used represent estimates of each county's population in 2002. Federal Davis-Bacon prevailing wage rates (residential and commercial) are determined by the U.S. Department of Labor. See Appendix B for a more detailed description of the methodology used by the Department of Labor to calculate these 27 wages. The Davis-Bacon wage rates as downloaded were already divided into residential and commercial wage rates for each trade. When multiple wage rates were given for a specific trade within a county, different rates usually were distinguished by one or more of the following three types of characteristics: ® Geography(e.g., east of the Sierra watershed vs. west of the Sierra watershed) m Size of project(e.g., total project costs over$25 million vs.under$25 million) • Type of work or scope of project (e.g., structures up to and including 4 stories vs. those with 5 stories or more) Whenever more than one wage rate was given in the Davis-Bacon data, care was taken to ensure that the correct rate or rates were used so that valid comparisons could be made with wage rates from the other sources. This usually involved either selecting the single most comparable rate based on the description given, or taking the average of two 26 See http:/iAv«w.dof.ca.go HTNIL;DENIOC RAP/E-5text2.11m. 27 The Davis-Bacon data used for this analysis were downloaded from the GPO-access website (http:/iwww.access.L=rc�ovidavisbzlcon;'ca.litini)on May 25,2003. Prepared by CICG 20 6/9/2004 or more rates. For a complete listing of instances where an average wage rate was calculated, see the notes in Appendix D. Analysis of Wage Data The analysis conducted for this study was done to answer the following three questions: 1) How do the published California commercial prevailing wage rates compare to market rates in general, and are there pronounced regional differences in different parts of California? 2) How do Davis-Bacon commercial prevailing wage rates compare to DIR commercial prevailing wage rates? 3) How do Davis-Bacon commercial prevailing wage rates compare to Davis-Bacon residential prevailing wage rates? As mentioned above, statistics were calculated for each analysis on a county-by- county basis, and then summarized across all counties in two ways: (1) a simple average where each county is weighted equally and(2) a population-weighted average where each county is weighted by its 2002 population. Calculating the population-weighted average provides a more representative estimate to the extent that construction occurs proportionally to the population in a given area. California Commercial Prevailing Wage Rates vs. Market Wage Rates This analysis compares the California prevailing wage rates for commercial construction as published by the DIR with the market wage rate as published by the EDD. The comparison is conducted for each of the five trades on a county-by-county basis. The Prepared by CICG 21 6/9/2004 results of this comparison, as summarized in Table 2 below, indicate that DIR prevailing wage rates are significantly higher than market wage rates,with considerable variation across trades. The DIR commercial prevailing wage rates range from 28%higher for carpenters to 61%higher for HVAC/sheet metal workers when each county is weighted equally, and from 36% for carpenters to 55% for plumbers when each county is weighted by its population. Appendix E presents a more detailed summary of the results of this comparison. Table 2: California DIR Commercial Prevailing Wage Rates vs.EDD Market Wage Rates (Percent by which DIR prevailing wage rate is greater than EDD market rate) Simple Avg. Population-Weighted Avg. Carpenter 28% 36% Drywall Installer 43% 41% Electrician* 41% 40% HVAC/SheetMetal Worker 61% 53% Plumber 56% 55% *Polo County could not be included in the analysis for electricians because the EDD data did not include a market wage rate for electricians for this county. A county-by-county comparison of DIR commercial prevailing wage rates with EDD market wage rates reveals significant variation,both across trades and among regions of the state. In the vast majority of cases, the DIR commercial prevailing wage rate is higher than the market wage rate(although there are a few counties where the prevailing wage rate is lower than the published market rate for a particular trade). In fact, there are a number of instances where the DIR prevailing wage rate is more than 100% greater than the average market rate, with the greatest difference being 149%(see. San Benito County for plumbers). Prepared by CICG 22 6/9/2004 Figure 1: California Commercial Prevailing Wage Rates vs.Market Rates for Carpenters(Percent by which DIR prevailing wage rate is greater than EDD market rate) - 11% Greater 11 - 17% Greater 17 - 24% Greater T� 24 - 30% Greater -SW. 30 - 39% Greater 39 - 51% Greater z 51 - 68% Greater While the variation in wage rates makes it difficult to generalize across counties and trades, Figure 1 above shows a map presenting the difference between commercial prevailing wages and market wages for carpenters in each county in the state.As the map in Figure 1 shows, the largest differential for carpenters generally occurs in the Prepared by CICG 23 6/9/2004 southeastern (50-60% increase) and central (60-70% increase) counties. In contrast, the northeastern counties and coastal Bay Area counties have in general a much smaller differential (10-20%increase).Note that this analysis applies only to carpenters, and other trades may exhibit different patterns of wage differentials. Appendix E contains similar maps for the other trades examined, and a table with the differential between DIR prevailing wage rates and the EDD market wage rates for each county. Commercial Prevailing Wage Rates:Davis-Bacon Federal Prevailing Wage Rates vs. DIR State Prevailing Wage Rates This analysis compares the Davis-Bacon federal prevailing wage rates for commercial construction against the comparable DIR California state prevailing wage rates for commercial construction. Because some of the data series presented in the Davis-Bacon wage rates have not been updated recently, this analysis was conducted in two ways—first using all of the available data regardless of when the wage rate was last updated, and, second, looking only more recent Davis-Bacon data, which for the purposes of this analysis was defined as data that has been updated within the last four years(since June 1, 1999). A summary of the results of this analysis is presented in Table 3 below, with more detailed results for each county given in Appendix F. Prepared by CICG 24 6/9/2004 Table 3: DIR Commercial Prevailing Wage Rates vs.Davis-Bacon Commercial Rates (Percent by which DIR prevailing wage rate is greater than Davis-Bacon prevailing wage rate) Simple Population- Avg. Weighted Avg. Counties/Population Included Using All Available Davis-Bacon Data Series:' Carpenter 3% 2% All Drywall Installer 3% 2% All Electrician 7% 1% All HVAC/Sheet Metal Worker 1% 0% All Plumber 6% 1% All Using Only Recent Davis-Bacon Data Series:- Carpenter 0% 1% (52 counties) (97.9%of Pop.) Drywall Installer 0% 2% (53 counties) (99.0%of Pop.) Electrician 1% 0% (53 counties) (99.0%of Pop.) HVAC/Sheet Metal Worker -2% 0% (53 counties) (99.0%of Pop.) Plumber 1% 0% (53 counties) (99.0%of Pop.) Notes: 'This analysis was performed using all available Davis-Bacon data series,regardless of the date that data series was last updated.All 58 counties had the necessary data for this analysis. 'This analysis was performed using only counties for which Davis-Bacon commercial data series were last updated on 6/I/1999 or later.When this filter is applied,some counties are no longer included in the analysis as shown. As Table 3 shows, Davis-Bacon commercial prevailing wage rates are quite close to the DIR's commercial prevailing wage rates(between I and 7% for the simple average across counties, and between 0 and 2% on a population-weighted basis). When only the recent Davis-Bacon data are used, the differences narrow for the simple average to between 0 and 2%, and remain within that narrow range for the population-weighted average. Davis-Bacon Federal Prevailing Wage Rates:Residential vs. Commercial Rates This analysis compares the Davis-Bacon federal prevailing wage rates for commercial construction against the comparable prevailing wage rates for residential Prepared by CICG 25 6/9/2004 construction. Again, the comparison is conducted for each of the five trades on a county- by-county basis, and the estimates are done both using all of the Davis-Bacon data and then using only the more recent Davis-Bacon data. The results are summarized in Table 4 below, with more detailed county-by-county results presented in Appendix G. Table 4: Federal Davis-Bacon Prevailing Wage Rates:Commercial vs.Residential (Percent by which commercial rates are greater than residential rates) Simple Population- Avg. Weighted Avg. Counties/Population Included Using All Available Davis-Bacon Data Series:1 Carpenter 52% 36% (58 counties) (100.0%of Pop.) Drywall Installer 38% 36% (46 counties) (96.6%of Pop.) Electrician 89% 56% (58 counties) (100.0%of Pop.) HVAC/Sheet Metal Worker 64% 19% (42 counties) (89.7%of Pop.) Plumber 85% 39% (56 counties) (99.9%of Pop.) Using Only Recent Davis-Bacon Data Series:' Carpenter 18% 34% (37 counties) (95.7%of Pop.) Drywall Installer 26% 35% (35 counties) (94.8%of Pop.) Electrician 40% 53% (34 counties) (87.9%of Pop.) HVAC/Sheet Metal Worker 11% 14% (31 counties) (87.4%of Pop.) Plumber 42% 36% (38 counties) (96.8%of Pop.) Notes: This analysis was performed using all available Davis-Bacon data series,regardless of the date that data series was last updated. Some counties did not have Davis-Bacon residential prevailing wage rates for some trades,and could therefore not be included in the analysis as shown above. 'This analysis was performed using only counties for which Davis-Bacon commercial data series were last updated on 6/1/1999 or later.When this filter is applied,more counties are no longer able to be included in the analysis as shown. As Table 4 shows, the simple average difference between commercial and residential prevailing wage rates ranges from 38%to 89%higher when each county is weighted equally, and from 19%to 56%higher when each county is weighted by its population. When only recent data are included, however, the difference between commercial and residential Davis-Bacon prevailing wage rates decreases considerably for Prepared by CICG 26 6/9/2004 the simple-average across counties, and decreases somewhat for the population-weighted average. As the table shows, the minimum average difference goes from 19%to 14% for HVAC/sheet metal workers, and the maximum average difference goes from 56%to 53% for electricians. For all five of the trades examined, the population-weighted figures change by fewer than 5 percentage points, indicating that these estimates are quite robust. Discussion of Wage Differentials The analyses described above indicate that prevailing wage rates differ considerably from market wage rates,that state and federal commercial prevailing wage rates are nearly identical, and that the Davis-Bacon prevailing wage rates differ considerably between commercial and residential construction. While there is a great deal of variation across counties and among the five construction trades examined, three clear patterns emerge when the data are examined for California as a whole: 1) The current prevailing wage rates for commercial construction as determined by the DIR are considerably higher than the average market wage rates for the same trade. Based on this analysis, the DIR rates are on average about 36%to 55%higher. 2) The current Davis-Bacon commercial prevailing wage rates for federally funded construction projects are very close to the DIR commercial prevailing wage rates for state funded construction projects. For the state as a whole,the two rates are on average within 2% of one another, and, for most trades, identical. 3) The current Davis-Bacon commercial prevailing wage rates.are considerably higher than the Davis-Bacon residential prevailing wage rates. When analyzing only the Prepared by CICG 27 6/9/2004 most recent Davis-Bacon data series,the commercial rates range from 14%to 53% higher than the residential rates, with a median difference of approximately 35%. Resression Analysis The wage comparison analysis presented above clearly indicates that prevailing wages are significantly higher than market wage rates. In order to determine the impact of higher wages on the construction costs for affordable housing projects, we compared costs for a sample of affordable housing projects built with prevailing wages to a comparable sample of projects not subject to these requirements. Any analysis that seeks to identify the effect of one factor on an outcome,in this case the effect of prevailing wages on construction costs,must also take into account a number of other factors that together determine the level of construction costs. We used a method called regression analysis, which shows us the effect of an influencing factor (or independent variable)on an outcome(the dependent variable), while allowing us to control for other possible explanatory factors. The approach we followed closely resembled the methodology of the Dunn, et.al. study. Our analysis, however, is based on a substantially larger sample of projects and incorporates several refinements to the earlier methodology. Data Sources for Regression Analysis Our dataset consists of newly constructed multi-family rental-housing projects that received federal Low-Income Housing Tax Credits(LIHTC) from the California Tax Credit Allocation Committee (TCAC).28 Information was collected on 365 projects with 28 Many projects also received state tax credits. Prepared by CICG 28 6/9/2004 applications filed after January 1, 1997, and which were placed in service before December 31, 2003. Two cost variables were used as outcomes in our analysis. "Construction Cost" includes site preparation, materials and labor, overhead and profits for the contractor, and general requirements. "Total Project Cost" is a broader cost measure, including all costs related to the development and construction of the residential portion of a project, including site preparation and land, architect and engineering costs, financing, and other costs, as well as construction costs. We employed two methods to test for the impact of the prevailing wage requirements on project costs. In the first, we included a simple variable indicating whether or not prevailing wages were paid. Analysis of this variable indicates the overall cost increase resulting from prevailing wage requirements. In the second, we constructed a new variable to estimate the percent difference between the market wage rates and the prevailing wage rates,based on our wage differential analysis. For prevailing wage projects we assigned this variable to the value of the average wage difference between market and prevailing wages for that county, and for non prevailing wage projects we assigned this variable to zero. Analysis of this variable allows us to estimate the likely impact on total project costs stemming from a specified increase in wage rates. We collected data on several variables to help explain variations in construction costs and total project costs. These measures included characteristics of the projects such as the inclusion of elevators,below-structure parking or special facilities,the type of structure, location,number of units, density, and affordability. We grouped projects into Prepared by CICG 29 6/9/2004 one of nine geographical areas to ascertain regional cost differentials. Our study included dummy variables for the years 1997 to 2002 in order to account for year-specific factors that may influence construction or project costs. A complete list of variables, and further explanation of our regression analysis methodology is included in Appendix H. Summary Statistics for Variables Used in Regression Analysis Of the 365 projects, 85 (or 23%)paid prevailing wages to construction workers while 280 paid market wages. The average project had 85 units and was just over 80,000 square feet. Over half of all projects were targeted at large families, and approximately 40 percent were at least half composed of units with three or more bedrooms. Figure 2: Location of TCAC Affordable Housing Projects used in Regression Analysis by Region `a IICtI l lv. " c �Mr .: V V . i gyp.` 6 Mlle a Not A Prevailing"Wage Project A Prevailing Wage Project .. Sacramento I Bay Area �. F 3 r N . ter! 01, Cents asY 'San Joaquin Val MU Prepared by CICG 30 6/9/2004 The projects were spread throughout the state. One hundred and twenty three projects were located in Southern California. Ninety-eight, or about one quarter, were located in the Bay Area, and 12 percent in the San Joaquin Valley. The map in Figure 2 above shows the location of all the projects in the sample. In nominal terms, the average prevailing wage project cost nearly $12.6 million while the average market wage project cost just under$10 million. The average cost per unit was$168,088 for prevailing wage projects and $123,435 for market wage projects. Table 5 shows a comparison of prevailing wage and non prevailing wage projects according to several nominal and real (inflation-adjusted) cost measures. As Table 5 indicates, the prevailing wage projects were more expensive on average when compared with the market wage projects for every measure used,both in real and nominal terms. Table 5: Various Cost Measures for Prevailing Wage and Non Prevailing Wage Projects Prevailing Wage Projects Non Prevailing Wage Projects Cost Measures Number Mean Median Number Mean Median Project Costs($Millions) Construction Costs-Unadjusted 85 7.381 6.199 280 6.123 5.460 Construction Costs-Constant 1997 Dollars 85 7.027 5.742 280 5.837 5.256 Total Project Costs-Unadjusted 85 11590 10.594 280 9.953 8.916 Total Project Costs-Constant 1997 Dollars 85 11.972 9.862 280 9.498 8.540 Per-Unit Construction Costs($) Construction Costs-Unadjusted 85 99,678 94,279 280 75,130 71,186 Construction Costs-Constant 1997 Dollars 85 95,206 90,586 280 71,839 68,067 Total Project Costs-Unadjusted 85 168,088 165,429 280 123,435 117,187 Total Project Costs-Constant 1997 Dollars 85 160,361 159,377 280 118,098 110,835 On a regional basis, the difference between prevailing wage projects and non prevailing wage projects varied, although it is difficult to draw definitive conclusions from a regional analysis because some regions had few or no prevailing wage projects to compare. As Table 6 shows,prevailing wage projects were on average more expensive than non prevailing wage projects in every region except for the Northern California Prepared by CICG 31 6/9/2004 region, although it is difficult to draw any reliable conclusions from this due to the small number of projects being compared. Table 6: Regional Comparison of Total Project Costs/Unit in Constant 1997 Dollars Prevailing Wage Projects Non-Prevailing Wage Projects Region Number Mean($) Median($) Number Mean($) Median_($) Northern California 2 90,289 90,289 .2 111,036 111,036 Northern Sacramento Valley 0 n/a n/a 5 109,811 109,868 Central Sierra 0 n/a n/a 2 94,498 94,498 Greater Sacramento 1 108,255 108,255 34 100,103 97,980 Bay Area 52 175,321 179,862 46 130,638 129,950 Central Coast 0 n/a rila 18 124,430 129,876 San Joaquin Valley 3 108,941 117,755 38 92,853 90,702 Southern California 23 146,555 152,183 too 125,903 113,287 Southern Border Region 4 131,897 134,632 35 123,886 118,096 OVERALL 85 160,361 159,377 280 118,098 110,835 Note that due to the limited number of projects in most regions,direct comparisons may be unreliable. Regression Results Using our expanded dataset, we first replicated the regression models presented by Dunn et.al.29 Our results very closely matched those reported in this UCB study. Our analysis showed that projects paying prevailing wages have a total project cost of approximately I I percent more than those not under prevailing wage requirements when controlling for relevant factors that influence cost. These cost effect results were virtually identical to the results reported by Dunn et.al. Cost Effects Regression Analysis We also made several modifications to the Dunn et.al.methodology. First we used a substantially larger dataset, including 365 projects. We also made several adjustments to account for inflation and time-specific factors that may influence construction or project costs. Finally, we built and tested a series of models using the 29 We replicated these models as closely as possible,however,certain data used by Dunn et.al.was not available for our analysis. Prepared by CICG 32 6/9/2004 difference between market and prevailing wages as an independent variable(i.e., a factor that influences construction or project costs). Appendix I shows the results of the four main statistical models we used in our analysis. We found that project costs are affected by project size, developer type, and project type. Projects constructed by nonprofit developers are more expensive, as are projects in the Bay Area. Features such as tenant parking located below the project structure and elevators also contribute to higher costs. All these findings are consistent with our expectations, and with the Dunn et.al. results. Our analysis suggests that even when other factors are taken into account, projects paying prevailing are more expensive to develop. Our models suggest that projects paying prevailing wages are likely to incur 11.0 percent higher total residential project costs, and 11.8 percent higher residential construction costs. Regional Variation in Prevailing Wage Impact Although the TCAC projects used for our analyses were located throughout the state,there were not a sufficient number of prevailing wage projects in many regions to estimate regional differences directly through regression analysis. Indeed, as Figure 2 above illustrates,the prevailing wage projects in our sample were located primarily in the Southern California and San Francisco Bay Area regions. Thus,to estimate the regional variation in the impact of the new prevailing wage requirements,we have applied the coefficient estimate for the average percent wage differential variable(PctDiff Avg) in Table (see Appendix I)to the average wage differential for each county as determined by our wage differential analysis above. In this way,we are able to estimate the impact of the prevailing wage requirement by county. The results of these calculations are Prepared by CICG 33 6/9/2004 presented in Table 7 below. As Table 7 shows, the estimated change in total project cost ranges from a low of 6.4% in Mariposa County to a high of 15.3% in Lake County. Table 7 shows how the total residential construction cost varied between prevailing wage and non prevailing wage projects across regions. Table 7: Estimation of Regional Variation in Prevailing Wage Impact on Total Project Cost Total Project Cost: Avg.Pet Wage Coefficient from Estimated Change: County Difference Regression Analysis Total Project Cost ALAMEDA 45% 0.2366 10.7% ALPINE 39% 0.2366 9.2% AMADOR 43% 0.2366 10.3% BUTTE 58% 0.2366 13.8% CALAVERAS 36% 0.2366 8.5% COLUSA 55% 0.2366 13.1% CONTRA COSTA 45% 0.2366 10.7% DEL NORTE 33% 0.2366 T8% EL DORADO 41% 0.2366 9.7% FRESNO 42% 0.2366 9.9% GLENN 55% 0.2366 13.1% HUMBOLDT 33% 0.2366 7.8% IMPERIAL 56% 0.2366 13.2% INYO 49% 0.2366 1 1.7% KERN 53% 0.2366 12.5% KINGS 31% 0.2366 7.2% LAKE 65% 0.2366 15.3% LASSEN 55% 0.2366 13.1% LOS ANGELES 48% 0.2366 11.3% MADERA 42% 0.2366 9.9% MARIN 30% 0.2366 7.1% MARIPOSA 27% 0.2366 6.4% MENDOCINO 65% 0.2366 15.3% MERCED 50% 0.2366 11.9% MODOC 49% 0.2366 1 1.7% MONO 49% 0.2366 1 1.7% MONTEREY 29% 0.2366 6.9% NAPA 48% 0.2366 1 1.3% NEVADA 56% 0.2366 13.3% ORANGE 40% 0.2366 9.4% PLACER 41% 0.2366 9.7% PLUMAS 55% 0.2366 13.1% RIVERSIDE 58% 0.2366 13.7% SACRAMENTO 42% 0.2366 10.0% SAN BENITO 64% 0.2366 SAN BERNARDINO 59% 0.2366 14.0% SAN DIEGO 38% 0.2366 9.0% SAN FRANCISCO 38% 0.2366 9.0% SAN JOAQUIN 31% 0.2366 7.4% SAN LUIS OBISPO 41% 0.2366 9.6% SAN MATEO 35% 0.2366 8.4% SANTA BARBARA 34% 0.2366 8.0% SANTA CLARA 43% 0.2366 10.1% SANTA CRUZ 32% 0.2366 7.5% SHASTA 55% 0.2366 13.0% Prepared by CICG 34 6/9/2004 Total Project Cost: Avg.Pct Wage Coefficient from Estimated Change: County Difference Regression Analysis Total Project Cost SIERRA 55% 02366 13.1% SISKIYOU 49% 0.2366 11.7% SOLANO 48% 0.2366 11.3% SONOMA 55% 0.2366 13.0% STANISLAUS 39% 0.2366 9.2% SUTTER 52% 0.2366 12.3% TEHAMA 55% 0.2366 13.1% TRINITY 55% 0.2366 13.1% TULARE 45% 02366 10.6% TUOLUMNE 36% 02366 8.6% VENTURA 46% 0.2366 10.8% YOLO 32% 0.2366 7.5% YUBA 52% 0.2366 12.3% To illustrate how the estimated change in total project cost varies by region,we have also constructed a map that plots these values for each county. This map is Figure 3: Estimated Change in Total Project Cost by County p, 6% to 8% Greater a' 8% to 9% Greater 9% to 11% Greater 11% tol3% Greater 13%to 5% Greater spar � ff �w N MEN Prepared by CICG 35 6/9/2004 presented in Figure 3 above. As Figure 3 shows, the regional differences, while not extreme,do indicate that different parts of California will be affected differently by the new prevailing wage requirements. Discussion o f Regression Results Our regression results confine earlier studies and what has long been suspected: prevailing wage requirements increase the costs of building affordable housing. Those cost increases can be expected to have a significant impact on the long-tern funding and availability of affordable housing. The goal of government subsidies for affordable housing construction is to increase the availability of affordable housing, yet the increased costs associated with prevailing wages may serve instead as a greater. disincentive. Increased costs, without snatching increases in public subsidy funding, will most likely lead to fewer low-income housing units being constructed in California. Reduction in Number of Affordable Units Increasing the costs of producing affordable housing is expected to lead to a decrease in the number of low-income housing units produced. Using the estimated total project cost increase from our regression analyses, we can estimate the reduction in affordable units produced. In 2003 TCAC funded 18,779 low-income housing units.30 This number includes both newly constructed and rehabilitated units.31 Based on our dataset,we estimate that 23%of TCAC funded projects were required to pay prevailing wages. Thus in 2003,we estimate that 4,338 units were subject to prevailing wage requirements, and 14,441 were not. Had these additional units been 30 TCAC Annual Report,2003.This number includes units funded through both the 9%competitive tax credit program,and the 4%tax-exempt bond financed program. 31 In estimating the number of reduced units,we are assuming that the cost impact of prevailing wages on new construction will be the same on rehabilitation projects. Prepared by CICG 36 6/9/2004 subject to prevailing wage requirements, total project costs would have increased by 11 percent. Without funding increases,this would have caused a reduction in the number of units that were produced. We estimate that had prevailing wage requirements been in effect for all TCAC funded units in 2003, 1,431 fewer units would have been built. Going forward, we estimate that these same economic forces will act to reduce the number of affordable units produced each year. Conclusion While many public works projects have been subject to prevailing wage requirements since 1931, the expansions to the law provided by SB 975 will impact additional construction sectors. In particular, attention has been focused on affordable housing programs which now fall under the umbrella of prevailing wage laws.Available evidence strongly indicates that prevailing wage requirements increase labor costs and ultimately overall project costs for publicly funded construction projects. The conclusion based on existing evidence is clear: requiring prevailing wages for construction of affordable housing in California will significantly increase construction costs and ultimately reduce the number of units produced unless additional resources are made available. Specifically, our analysis indicates that prevailing wages are approximately one-third to one-half higher than comparable market wages. Furthermore, our comparison of prevailing wage projects to market wage projects reveals that these higher wages increase overall project costs by nearly 11 percent. Because affordable housing developers often piece together funding from multiple small sources, even an I 1 percent construction cost increase could prevent projects from being built at all. Finally, we estimate that the requirement that virtually all affordable projects be built with Prepared by CICG 37 6/9/2004 prevailing wages will reduce the number of units produced by approximately 1,400 annually. Public agencies funding construction projects must accommodate higher project costs in their funding priorities. If they wish to continue funding the same number of projects with the same level of aid impact, larger budget allocations will be needed. Due to the current expectation of ongoing budget deficits at the state and federal levels, it is unclear whether additional funding will be available to maintain the number of publicly funded construction projects. Alternatives to increased budgets include reducing the number of projects funded by public agencies or reducing per-project funding. Reducing per-project funding may place a large burden on private contractors who receive less funding but face higher labor costs. This may decrease the relative attractiveness of public funding for certain projects. Initial examinations of the first funding rounds by CDLAC and TCAC, two top government sources of funding for affordable housing units, suggest there may be undersubscription to their tax credit and tax-exempt bond programs. While this is not unheard of in the history of those programs, it is unclear whether this is short-term economic dislocation resulting from confusion created by the introduction of prevailing wage requirements, or evidence of the beginning of ongoing reductions in publicly subsidized affordable housing. Prepared by CICG 38 6/9/2004 Works Cited Allen, Steven G., "Unionized Construction Workers are More Productive," The Quarterly Journal of Economics,"Vol. 99, Issue 2 (May 1984),pp. 251-274. Allen, Steven G., "Unionization and Productivity in Office Building and School Construction,"Industrial and Labor Relations Review,"Vol. 39, Issue 2 (January 1986),pp. 187-201. California Labor Code, Section 1773.9(b)(1). Dunn, Sarah; Quigley, John M.; and Rosenthal, Larry A.; "The Effects of Prevailing Wage Requirements on the Cost of Low-Income Housing,"Working Paper W03- 003, Institute of Business and Economic Research and the Fisher Center for Real Estate and Urban Economics, University of California, Berkeley, September 2003. Fisher, Peter S. and Sheehan, Michael F., "Economic Impacts of a Prevailing Wage Law for Iowa State Construction Projects,"Prepared for the Iowa State Building and Construction Trades Council, Des Moines, Iowa, February 27, 1985. Fraundorf, Martha Norby ; Farrell, John P.; and Mason, Robert, "The Effect of the Davis- Bacon Act on Construction Costs in Rural Areas," The Review of Economics and Statistics, Vol. 66, Issue 1, February 1984,pp. 142-146. Goldfarb, Robert S. and Morrall, John F. (III), "Cost Implications of Change Davis- Bacon Administration,"Policy Analysis, Fall 1978. Goldfarb, Robert S. and Morrall, John F. (III), "The Davis-Bacon Act: An Appraisal of Recent Studies,"Industrial and Labor Relations Review, Vol. 34, Issue 2 (January 1981),pp. 191-206. The Law Offices of Steven H. Goldfarb and Barry R. Lipman, SB975 Prevailing Wages Memorandum, Oakland,Nov. 28,2001. The Law Offices of Steven H. Goldfarb and Barry R. Lipman,Prevailing Wages "Clean- Up Legislation"—SB972 Memorandum, Oakland, Oct. 2,2002. Gould, John P. and Bittlingmayer, George, The Economic sof the Davis-Bacon Act:An Analysis of Prevailing Wage Laws, American Enterprise Institute for Public Policy Research, Washington, D.C., 1980. SB 975 Legislative Counsel's Digest. "Procedures for Predetermination of Wage Rates." Code of Federal Regulations Title 29, Pt. 1.2. Prus, Mark J., "The Effect of State Prevailing Wage Laws on Total Construction Costs," January 1996. Thieblot,Armand J.,The Davis-Bacon Act, Labor Relations and Public Policy Series, Report No 10,Philadelphia: University of Pennsylvania Press, 1975. Prepared by CICG 39 6/9/2004 Thieblot, Armand J., "State Prevailing Wage Laws,"prepared for Associated Builders and Contractors, Inc., 1995. Prepared by CICG 40 6/9/2004 Appendices Appendix A: California Prevailing Wages 1. Prevailing Wage Definitions A. Prevailing Wage Project Definition: California Labor Code Section 1771 Except for public works projects of one thousand dollars($1,000)or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed as provided in this chapter, shall be paid to all workers employed on public works. Available at: http:/:-`14-ww.leiinfo.ca. :,o-%%'c%' gi- bini(lisplavcode?section=lab&groLip=01001-02000&file_1770-1780 B. Commercial/Residential Project Definitions Commercial Project Definition: All non-residential construction projects including new work,additions, alterations, reconstruction and repairs. This includes residential projects over four stories. Residential Project Definition: Projects consisting of single-family homes and apartments up to and including four stories are subject to payment of prevailing wages when paid for in whole or in part out of public funds, including federally funded or assisted residential projects controlled or carried out by an awarding body. From the DIR's Prevailing Wage FAQs at htt1):. workitout.ca.gov/facl.asp?id=143. 2. DIR methodology for calculating commercial prevailing wage rates The prevailing wage is the wage paid to the majority, or mode,of workers. A. The Director of the Department of Industrial Relations: 1. Ascertains the wage fates established by collective bargaining agreements, and wages for federal public works. 2. If this is not the prevailing wage in the locality, then more information is gathered from labor organizations and employers. Prepared by CICG 41 6/9/2004 3. If this cannot be determined, then the director will establish an alternative rate, based on the methodology of finding the mode. 4. Wage rates change per collective bargaining agreement terms. B. California Labor Code Section 1773.9 1773.9. (a)The Director of Industrial Relations shall use the methodology set forth in subdivision(b)to determine the general prevailing rate of per diem wages in the locality in which the public work is to be performed. (b)The general prevailing rate of per diem wages includes all of the following: (1)The basic hourly wage rate being paid to a majority of workers engaged in the particular craft, classification, or type of work within the locality and in the nearest labor market area, if a majority of the workers is paid at a single rate. If no single rate is being paid to a majority of the workers, then the single rate being paid to the greatest number of workers, or modal rate, is prevailing. If a modal rate cannot be determined, then the director shall establish an alternative rate, consistent with the methodology for determining the modal rate, by considering the appropriate collective bargaining agreements, federal rates,rates in the nearest labor market area, or other data such as wage survey data. (2)Other employer payments included in per diem wages pursuant to Section 1773.1 and as included as part of the total hourly wage rate from which the basic hourly wage rate was derived. In the event the total hourly wage rate does not include any employer payments,the director shall establish a prevailing employer payment rate by the same procedure set forth in paragraph(1). (3)The rate for holiday and overtime work shall be those rates specified in the collective bargaining agreement when the basic hourly rate is based on a collective bargaining agreement rate. In the event the basic hourly rate is not based on a collective bargaining agreement, the rate for holidays and overtime work, if any, included with the prevailing basic hourly rate of pay shall be prevailing. Prepared by CICG 42 6/9/2004 (c) If the director determines that the general prevailing rate of per diem wages is the rate established by a collective bargaining agreement, and that the collective bargaining agreement contains definite and predetermined changes during its term that will affect the rate adopted, the director shall incorporate those changes into the determination. Predetennined changes that are rescinded prior to their effective date shall not be enforced. Available at: 11t ,'V-�vxN,v,, leginfo.ca.t:ovic�;i- bin'dispiavcc>dc`section—lab&;group=0I00l-02000&file=l?7O-1?80 Prepared by CICG 43 6/9/2004 Appendix B: Federal Prevailing Wages 1. Prevailing Wage Definitions A. Prevailing Wage Project Definition: Govermnent Printing Office Davis-Bacon Reference Material Each contract over $2,000 to which the United States or the District of Columbia is a party for the construction, alteration, or repair of public buildings or public works shall contain a clause setting forth the minimum wages to be paid to various classes of laborers and mechanics employed under the contract. Under the provisions of the Act, contractors or their subcontractors are to pay workers employed directly upon the site of the work no less than the locally prevailing wages and fringe benefits paid on projects of a similar character. Available at: http://«ww.access.�4po.�Yoi%(lavisbac.on:I-efereiieemat.htiiii B. Commercial/Residential Project Definitions Commercial Project Determination: 1. Building construction generally is the construction of sheltered enclosures with walk-in access for the purpose of housing persons, machinery, equipment, or supplies. 2. Highway projects include the construction, alteration or repair of roads, streets, highways, runways, taxiways, alleys, trails, paths, parking areas, and other similar projects not incidental to building or heavy construction. 3. Heavy construction is not a homogeneous classification. Because of this catch-all nature, projects within the heavy classification may sometimes be distinguished on the basis of their particular project characteristics, and separate schedules issued. For example, separate schedules may be issued for dredging projects, water and sewer line projects, dams,major bridges, and flood control projects. Residential Project Determination: Residential projects for Davis-Bacon purposes are those involving the construction, alteration, or repair of single-family houses or apartment buildings of no more than four (4) stories in height. This includes all incidental items such as site work, parking areas,utilities, streets and sidewalks. Available at: http://www.labor.gov/esa/programs/dbra/docs/memo- 131.pdf. Prepared by CICG 44 6/9/2004 2. U.S. Department of Labor methodology for calculating Davis-Bacon prevailing wage rates The prevailing wage is the wage paid to the majority of workers, or the weighted average wage. A. The Administrator of the Wage and Hour Division of the Department of Labor: 1. Collects voluntary submissions of wage information in a `survey.' 2. This data may include collective bargaining agreements, state and local prevailing wage rates, wage rates from contracting agencies, and wage rates on recent projects. It may not include wages paid on federally funded projects. 3. Union rates will be used if they are found to be prevailing (51%). Otherwise, a weighted average will be taken and used. Wage rate listings indicate the source of wage rate, survey or which particular union's rates. 4. New `surveys' are conducted every three years to update information, with a . staggered schedule. B. Code of Federal Regulations 29 CFR 1.3 -Obtaining and compiling wage rate information. (Source: Davis-Bacon and Related Acts) For the purpose of making wage determinations, the Administrator will conduct a continuing program for the obtaining and compiling of wage rate information. (a)The Administrator will encourage the voluntary submission of wage rate data by contractors, contractors' associations, labor organizations,public officials and other interested parties, reflecting wage rates paid to laborers and mechanics on various types of construction in the area.The Administrator may also obtain data from agencies on wage rates paid on construction projects under their jurisdiction. The information submitted should reflect not only the wage rates paid a particular classification in an area,but also the type or types of construction on which such rate or rates are paid, and whether or Prepared by CICG 45 6/9/2004 not such rates were paid on Federal or federally assisted projects subject to Davis-Bacon prevailing wage requirements. (b)The following types of information may be considered in making wage rate determinations: (1) Statements showing wage rates paid on projects. Such statements should include the names and addresses of contractors, including subcontractors, the locations, approximate costs, dates of construction and types of projects, whether or not the projects are Federal or federally assisted projects subject to Davis-Bacon prevailing wage requirements, the number of workers employed in each classification on each project, and the respective wage rates paid such workers. (2) Signed collective bargaining agreements. The Administrator may request the parties to an agreement to submit statements certifying to its scope and application. (3)Wage rates determined for public construction by State and local officials pursuant to State and local prevailing wage legislation. (4) In making wage rate determinations pursuant to 23 U.S.C. 113,the highway department of the State in which a project in the Federal-Aid highway system is to be performed shall be consulted. Before making a determination of wage rates for such a project the Administrator shall give due regard to the information thus obtained. (5)Wage rate data submitted to the Department of Labor by contracting agencies pursuant to 29 CFR 5.5(a)(1)(ii). (6) Any other information pertinent to the determination of prevailing wage rates. (c)The Administrator may initially obtain or supplement such information obtained on a voluntary basis by such means, including the holding of hearings, and from any sources determined to be necessary. All information of the types described in Prepared by CICG 46 6/9/2004 Sec. 1.3(b) of this part,pertinent to the determination of the wages prevailing at the time of issuance of the wage determination, will be evaluated in the light of Sec. 1.2(a) of this part. (d)In compiling wage rate data for building and residential wage determinations,the Administrator will not use data from Federal or federally assisted projects subject to Davis-Bacon prevailing wage requirements unless it is determined that there is insufficient wage data to determine the prevailing wages in the absence of such data. Data from Federal or federally assisted projects will be used in compiling wage rate data for heavy and highway wage determinations. Available at: ht!p:- www.labor.goyiesa"orlid%contracts"Idbra.lxtm. Prepared by CICG 47 6/9/2004 Appendix C: EDD methodology for calculating market wage rates The"Mean Hourly Wage" is the estimated total wages.for an occupation divided by its weighted survey employment. The EDD conducts their Occupational Employment Statistics Survey: 1. Establishments are asked to report how many workers they employ in a given occupation in each of several wage ranges. 2. Wages reported are averaged, weighted by survey employment. For more information see http://www.calmis.ca.gov/file/occup$/oeswages/oestechnotes.htm. Prepared by CICG 48 6/9/2004 Appendix D: Additional Notes— The following notes apply to all of the analyses associated with the comparison of various Federal Davis-Bacon prevailing wage rates and California (DIR)prevailing wage rates, as well as market wage rates, for various types of construction occupations. Listing of Sources Used: 1. Federal Davis-Bacon prevailing wage rates: Residential and commercial prevailing wage rates are.determined for each California county by the U.S. Department of Labor and are made available on the federal government's GPO-Access website at http://www.access.gpo.gov/davisbacon/ca.html. The rates used here were downloaded from this site on 5/25/2003. 2. California (DIR)prevailing wage rates: Commercial prevailing wage rates are made available by the California Department of Industrial Relations(DIR)Division of Labor Statistics and Research. The rates used here were downloaded from their website at http://www.dir.ca.gov/DLSR/PWD/index.htm on 5/23/2003. 3. Population statistics: Source: California Department of Finance, 2002 figures, taken from http://www.dof.ca.gov/HTML/DEMOGRAP/E-5text2.htm. 4. Market Mean wage rates (EDD): Market wage rates used are the "Mean Hourly Wage" for 2002, as reported by the California Employment Development Department(EDD). Note that these wage rates include both commercial and residential construction. The information was Prepared by CICG 49 6/9/2004 downloaded from the EDD website at http://www.calmis.ca.gov/htmlfile/subject/occup$.htm(downloaded on 5/5/2003). Notes on Specific Davis-Bacon Wage Rates Used: Whenever possible,the most appropriate Davis-Bacon wage rate was used, based on the description given. Such determinations were usually based on one or more of the following types of descriptions: 1. The type of work performed(e.g., light commercial, industrial, work on certain types of structures, etc.) 2. The size of the project for which the work is performed(e.g.,projects with a total value above or below a certain dollar figure, etc.) 3. The geographic location where the work is performed. When these types of descriptions were given,the rate most consistent with other available sources was selected if it could be determined, in order to ensure consistent comparisons across counties for a given type of construction occupation for commercial or residential construction. If a single rate could not be determined,the simple average of all the potentially appropriate rates was used. See the attached table for a listing of all specific instances where an average of various given rates was used instead of a single rate. Prepared by CICG 50 6/9/2004 Appendix D: Additional Notes-Table of Instances where Average Davis-Bacon Rate was Calculated and Used The following determinations represent all instances when a single Davis-Bacon wage rate was not used,but an average of various given rates was instead used: Residential/ Rate —County Trade Commercial Used Notes I.ALAMEDA HVAC COMMERCIAL $34.56 Rate used represents the average of two rates given: "Work on projects with an HVAC contract price of$270,000 equipped with packaged units or a unitary system,Also,tenant completion work extending from an existing trunk line or an existing water or air loop to registers and/or diffusers,also,remodel or add-on contracts on existing facilities providing the contract price is$165,000 or less;Also,architectural sheet metal contracts of$100,000 or less,Also,pre- engineered and pre-manufactured siding"($31.71)and"All Other Work($37,40) 2.AMADOR PLUMBER COMMERCIAL $20.88 Rate represents average of two rates given, "(northern half)"($19.72)and"(southern half)"($22.03) 3 AMADOR PLUMBER RESIDENTIAL $20.88 Rate represents average of two rates given: "(northern half)"($19 72)and"(southern halt)"($22.03) 4.CONTRA COSTA HVAC COMMERCIAL $34.56 Rate used represents the average of two rates given. "Work on projects with an HVAC contract price of$270,000 equipped with packaged units or a unitary system:Also,tenant completion work extending from an existing trunk line or an existing water or air loop to registers and/or diffusers,also,remodel or add-on contracts on existing facilities providing the contract price is$165,000 or less,Also,architectural sheet inetal.contraets of$100,000 or less,Also,pre- engineered and pre-manufactured siding"($31.71)and"All Other Work($37.40) 5.EL DORADO ELECTRICIAN RESIDENTIAL $26.16 Rate used represents the average of two rates given: "Work on single family homes and apartments up to and including 3 stories"($20.10)and"All other residential work"($32,21) Note also this is only for west of Main Sierra Mountains watershed. 6,EL DORADO PLUMBER COMMERCIAL $25.45 Rate represents average of three rates given: "Lake Tahoe Area only"($23.95),"Excluding Lake Tahoe area(Light Commercial Work)"($21.43); and"Excluding Lake Tahoe area(All Other Work)"($30.97) 7.EL DORADO PLUMBER RESIDENTIAL $19.04 Rate represents average of two rates given: "(Lake Tahoe basin only)"($16.65)and"(Does not include Lake Tahoe area)"($21.43) 8.FRESNO ELECTRICIAN RESIDENTIAL $17.80 Rate used represents the average of two rates given: "Construction,alteration,and/or repair ofall units built solely for family residence,including mobile homes,single family residence,triplexes,quadruplexes and walkup garden type apartments or walkup condominiums not to exceed two stories"($10.00)and"All Other Work"($25.60) 9.IMPEPIAL ELECTRICIAN RESIDENTIAL $19.41 Rate used represents the average of two rates: "Work on single family homes,duplexes,condominiums and apartments that do not exceed three(3)stories"($14.61)and"All other residential construction: Electrical subcontracts of $500,000 or less"($24,21). 10,KERN HVAC COMMERCIAL $27.09 Rate used represents the average of two rates given: "Work on all commercial HVAC for creature comfort and. computers clean rooms,architectural metals,metal roofing and lagging,over insulation(East of Hwy 4395 from Red Mountain to the Inyo County)"($28.99)and"Work on all new construction and remodel work except commercial buildings less than ten thousand(10,000)square feet(excluding that portion cast of highway 395)"($25.18) Prepared by CICG 51 6/9/2004 Appendix D: Additional Notes-Table of Instances where Average Davis-Bacon Rate was Calculated and Used Residential/ �CountyTrade Commercial Rate Used Notes 1 1,KERN PLUMBER COMMERCIAL $25.34 Rate represents average of three rates given- "Encompasses the far eastern side of Kern County,which includes Edwards Air Force Base,Rosamond,Boron,China Lake Naval Weapons Center and RidgecresT"($27.67); "Encompasses all the central valley: Bakersfield,Lamont,Arvin,Frazier Park,Taft,Shafter,Wasco,McFarland and Deleano"($22.67), and"Encompasses Kernville,Tehachapi,Lake Isabella,Mohave,Monolith and Weldon" ($25.67) 12.KERN PLUMBER RESIDENTIAL $25.34 Rate represents average of three rates given: "Encompasses the far eastern side of Kern County,which includes Edwards Air Force Base,Rosamond,Boron,China Lake Naval Weapons Center and RidgecresT"($27,67): "Encompasses all the central valley: Bakersfield,Lamont,Arvin,Frazier Park,Taft,Shaffer,Wasco,McFarland and Deleano"($22,67); and"Encompasses Kernville,Tehachapi,Lake Isabella,Mohave,Monolith and Weldon" ($25.67) 13.LOS ANGELES HVAC COMMERCIAL $29.40 Rate used represents the average of three rates given, (1)"SOUTH OF A STRAIGHT LINE DRAWN BETWEEN GORMAN AND BIG PINES,CALIFORNIA,EXCLUDING THE AREA SOUTH OF IMPERIAL HIGHWAY EAST OF THE LOS ANGELES RIVER,EXCLUDING THE CITIES OF LONG BEACH,CLAREMONT AND POMONA,AND EXCLUDING THE ISLAND OF CATALINA:Work on all new construction and remodel work except residential buildings and commercial buildings less than five thousand(5.000)square feet"($30.60),(2) "SOUTH OF IMPERIAL HWY.TO THE CITY OF LONG BEACH AND THE CITIES OF PONOMA AND CLAREMONT: Work on all commercial HVAC for creature comfort and computers clean rooms,architectural metals,metal roofing and lagging over insulation"($28.60);and(3)"AREA SOUTH OF IMPERIAL HIGHLY AND EAST OF THE 710 FREEWAY INCLUDING THE ENTIRE CITIES OF CLAREMONT,LONG BEACH AND POMONA Work on all commercial HVAC for creature comfort and computer clean rooms,architectural metals,metal roofing and lagging,over insulation"($28,99). 14,LOS ANGELES HVAC RESIDENTIAL $26,58 Rate used represents the average of two rates given: LOS ANGELES COUNTY(south of a straight line drawn between Gorman and Big Pines,including the area south of Imperial highway to the city limits of Long Beach, including the cities of Long Beach,Claremont,and Pomona,and the Island of Catalina): Installation and repair on all general sheet metal,heating and air conditioning,metal fireplace.and solar systems on single family dwellings, multiple family dwellings tract homes and apartment buildings individually conditioned by separate and independent units or systems($24.17)and"All Other Work"($28.99) 15.MADERA ELECTRICIAN RESIDENTIAL $17.80 Rate used represents the average of two rates given: "Construction,alteration,and/or repair of all units built solely for family residence,including mobile homes,single family residence,triplexes,quadruplexes and walkup garden type apartments or walkup condominiums not to exceed two stories"($10.00)and"All Other Work"($25.60) Prepared by CICG 52 6/9/2004 Residential/ Count Trade Commercial Rate Used notes 16.MERCED ELECTRICIAN RESIDENTIAL $23.26 Rate used represents the average oftwo rates given. "Applies to construction,alteration,and/or repair of all units built solely for family residence,including mobile homes.single family residence,duplexes.triplexes, quadruplexes,condominiums apartmentsup to and including three(3)stories"($18.50)and"All Other Residential Construction"($28.02) 17,NAPA PLUMBER RESIDENTIAL $29.90 Rate represents average oftwo rates given: "Work performed on single family residential units,condominiums, townhouses,apartment houses and mobile homes for which the total plumbing bid does not exceed$250,000'.or Any residential project bid in phases shall not qualify unless the total project is less than$250,000 for the Plumbing bill and$250,000 for the heating and cooling bid"($25.90)and"All other work"($33.90) 18. EVADA ELECTRICIAN RESIDENTIAL $26.16 Rate used represents the average oftwo rates given: "Work on single family homes and apartments up to and ncluding 3 stories"($20.10)and"All other residential work"($32.21) 19,NEVADA PLUMBER COMMERCIAL $25.45 Rate represents average of three rates given: "Lake Tahoe Area only"($23,95),"Excluding Lake Tahoe area (Light Commercial Work)"($21.43); and"Excluding Lake Tahoe area(All Other Work)"($30.97) 20. EVADA PLUMBER RESIDENTIAL $19.04 Rate represents average oftwo rates given: "(Lake Tahoe hasin only)"($16.65)and"(Does not include Lake Tahoe area)"($21.43) 2 LORANGE HVAC RESIDL-.NTIAL, $20 58 Rate used represents the average oftwo rates given. Installation and repair on all general sheet metal,healing and air conditioning,metal fireplace,and solar systems on single family dwellings.multiple family dwellings tract homes and apartment buildings individually conditioned by separate and independent units or systems($24.17)and "All Other Work"($28.99) 22.PLACER ELECTRICIAN RESIDENTIAL $26.16 Rate used represents the average oftwo rates given: "Work on single Gvmily homes and apartments up to and including 3 stories"($20.10)and"All other residential work"($32.21), Note also this is only for west of Main Sierra Mountains watershed. 23.PLACER PLUMBER COMMERCIAL $25.45 Rate represents average of three rates given: "Lake Tahoe Area only"($23.95),"Excluding Lake Tahoe area Light Commercial Work)"($21.43); and"Excluding Lake Tahoe area(All Other Work)"($30.97) 24.PLACER PLUMBER RESIDENTIAL $19.04 Rate represents average oftwo rates given: "(Lake Tahoe basin only)"($16.65)and"(Does not include L.akc Tahoe area)"($21.43) 25,RIVERSIDE HVAC RESIDENTIAL $26.58 Rate used represents the average oftwo rates given:Installation and repair on all general sheet metal,heating and air conditioning,metal fireplace,and solar systems on single family dwellings,multiple I'amily dwellings tract homes and apartment buildings individually conditioned by separate and independent units or systems($24-17)and "All Other Work"($28.99) 26.SACRAMENTO ELECTRICIAN RESIDENTIAL $26.16 Rate used represents the average of two rates given: "Work on single family homes and apartments up to and including 3 stories"($20 10)and"All other residential work"($32.21) Prepared by CICG 53 6/9/2004 Appendix D: Additional Notes-Table of Instances where Average Davis-Bacon Rate was Calculated and Used Residential/ County Trade Commercial Rate Used Notes 27.SAN BERNARDINO ELECTRICIAN RESIDENTIAL $23.11 Rate used represents the average of two rates given: "All single family dwellings and multi-family dwellings not exceeding eight units and/or two stories"($16.00)and"All other residential work"($27.25). 28.SAN BERNARDINO HVAC RESIDENTIAL $26 58 Rate used represents the average of two rates given.Installation and repair on all general sheet metal,heating and air conditioning,metal fireplace,and solar systems on single family dwellings,multiple family dwellings tract homes and apartment buildings individually conditioned by separate and independent units or systems($24.17)and "All Other Work"($28.99) 29.SAN BERNARDINO PLUMBER COMMERCIAL $31.46 Rate represents average of three rates given "Fort Irwin Army Base,Marine Corps Logistic Base at Nebo,Marine Corps Logistic Base at Yermo and Twenty-Nine Palms Marine Base"($33.31);"George Air Force Base"($32 06); and"Remainder of County"($29.81), 30.SAN DIEGO ELECTRICIAN RESIDENTIAL $23.61 Rate used represents the average of two rates given: "Work on family residences,single family homes duplexes, condominiums,apartments that do not exceed three(3)stories"($17.00)and"All other residential and building construction"($30.21). 31.SAN DIEGO HVAC COMMERCIAL $26.90 Rate represents average of two rates given: Camp Pendleton($27.90)and"Remainder of County"($25.90). 32.SAN DIEGO HVAC RESIDENTIAL $17.83 Camp Pendleton and Remainder of County) 33.SAN DIEGO PLUMBER COMMERCIAL $30.94 Rate represents average of two rates given: "Camp Pendleton"($32.06)and"Remainder of County"($29,81) 34.SAN FRANCISCO ELECTRICIAN RESIDENTIAL $36.44 Rate used represents the average of two rates given: "Work on residential wood frame remodel and repair in all wood-constructed buildings not to exceed 24 living units;and new wood frame single structure 1 or 2 family houses,or on all wood-constructed buildings not to exceed 20 living units under 1 roof excluding projects or tracts containing more than 2 houses,or more than I building"($27.33)and"All other work"($45.55). 35.SAN MATEO HVAC COMMERCIAL $36.83 Rate represents average of two rates given: "Work with an HVAC contract price of$270,000 equipped with packaged units or a unitary system;Also,tenant completion work extending from an existing trunk line or air loop to registers and/or diffusers;Also,remodel or add-on contracts on existing facilities providing the contract price is $165,000 or less;Also,architectural sheet metal contracts of$100,000 or less,Also,pre-engineered and pre- manufactured siding"($35,10)and"All Other Work"($38.55). 36.SANTA BARBARA ELECTRICIAN RESIDENTIAL $19,49 Rate used represents the average of two rates given: "Vendenberg Air Force Base"($21.36)and"(Excluding Vendenberg Air Force Base)"($17.61). 37.SANTA BARBARA PLUMBER COMMERCIAL $30,49 Rate represents.average of two rates given: "Vandenburg Air Force Base"($32.06)and"Remainder of County" ($28.92) Prepared by CICG 54 6/9/2004 Residential/ County Trade Commercial Rate Used Notes 39.SANTA CLARA HVAC COMMERCIAL $37.65 Rate represents average of two rates given: "Work with an HVAC contract price of$270,000 equipped with packaged units or a unitary system;Also,tenant completion work extending from an existing trunk line or air loop o registers and/or diffusers;Also,remodel or add-on contracts on existing facilities providing the contract price is $165,000 or less;Also,architectural sheet metal contracts of$100,000 or less,Also pre-engineered and pre- manufactured siding"($36.54)and"All Other Work"($38.75) 39 SOLANO PLUMBER RESIDENTIAL $29,90 Rate represents average of two rates given "Work performed on single family residential units,condominiums, townhouses,apartment houses and mobile homes for which the total plumbing bid does not exceed$250,000,or Any residential project bid in phases shall not qualify unless the total project is Tess than$250,000 for the Plumbing bid and$250,000 for the heating and cooling bid"($25.90)and"All other work"($33.90) 40.STANISLAUS ELECTRICIAN RESIDENTIAL $23.26 Rate used represents the average of two rates given: "Applies to construction,alteration,and/or repair of all units built solely for family residence,including mobile homes,single family residence,duplexes,triplexes, quadruplexes,condominiums apartments up to and including three(3)stories"($18.50)and"All Other Residential Construction"($28.02) 41.SUTTER ELECTRICIAN RESIDENTIAL $26.16 Rate used represents the average of two rates given "Work on single family homes and apartments up to and including 3 stories"($20.10)and"All other residential work"($32.21). 42. ULARE ELECTRICIAN RESIDENTIAL $17.80 Rate used represents the average of two rates given: "Construction,alteration.and/or repair of all units built solely for family residence,including mobile homes,single family residence,triplexes.quadruplexes and walkup garden type apartments or walkup condominiums not to exceed two stories"($10.00)and"All Other Work"($25 60) 43.YOLO ELECTRICIAN RI-SIDENTIAL $26.16 Rate used represents the average of two rates given. "Work on single family homes and apartments up to and me uding 3 stories"($20.10)and"All other residential work"($32.21), 44. UBA ELECTRICIAN RESIDENTIAL $26.16 Rate used represents the average of two rates given: "Work on single family homes and apartments up to and including 3 stories"($20.10)and"All other residential work"($32.21) Prepared by CICG 55 6/9/2004 A endix E: Com arison of Commercial Prevai ing Wage Rates with Mean Market Rates (Combined Residential and Commercial Construction) Carpenter Drvwall Installer Electrician IIVA6Sheet Metal Worker Plumber Percent Percent EDD Percent EDD Percent EDD Percent DIR EDD by which DIR EDD by which DIR Mean by which DIR Mean by which DIR Mean by which Commercial Mean Market DIR rate is Commercial Mean Market DIR rate is Commercial Market DIR rate is Commercial Market DIR rate is Commercial Market DIR rate is Count PO I-datlon PW Rate Waize Rate Greater PW Rate Wa e Rate Greater PW Rate Waee Rate Greater PW Rate Wage Rate Greater PW Rate Wage Rate Greater ALAMEDA 1,484,698 $29.75 $23.0 290E $29.75 $23.3 270E $37.00 $31,71 17% $36.59 $17.02 1150E $3551 $25.71 380E ALPINE 1,210 $2327 $18,96 230E $23.77 $18.01 320E $3221 $24.76 301G, $27.37 $16.52 66"/ $29.29 $20,35 44% AMADOR 36,049 $232 $18.86 23% $23.77 $18.01 320E $3221 $24,76 300E $31.05 $16.52 880E $29,29 $20.35 44% BUTTE 207,310 $23.2 $16-73 39% $23.77 $17.29 37'% $32.21 $2020 59% $31.05 $17 33 790E $28.79 $16.25 77% CALAVERAS 41,820 $23.27 $18.86 230E $23.77 $18.01 320E $28.19 $24.76 14% $27.3 $16.52 66% $29.29 $20,35 44% OLUSA 19,341 $2127 $21.11 100E $23.77 $15.08 580E $32.21 $18.32 76% $31,05 $16.91 840E $28.79 $19 is 50'% CONTRA COSTA 980,870 $29.75 $23.0 290E $29.75 $23.3 270E $37.51 $31.71 18% $36.59 $17.02 1 150E $35.21 $25.71 37% DEL NORTE 27,694 $23.27 $18.84 240E $23.77 $14.75 61% $26.12 $23.96 9% $21,92 $20.48 70/ $30.93 $18,74 65% ELDORADO 163,649 $23.27 $20.5 130E $23,77 $16.48 440E $32.21 $21.85 47% $31,05 $21.33 460E $29.40 $19,12 54% FRESNO 827,310 $23.27 $17.43 340E $23.77 $15.48 54-/ $27.10 $18.14 49% $24 80 $1920 290E $28.79 $19,96 44% GLENN 26,747 $23.27 $21.11 10°/ $23.77 $15.08 580E $32.21 $18.32 761!4, $31.05 $16,91 840E $28.79 $19.18 50% HUMBOLDT 127,305 $23.27 $18.84 240E $23,77 $14.75 61"/ $26.12 $23.96 9% $21.92 $20.48 70/ $3093 $18.7 65% IMPERIAL 150,21 $29.00 $19 33 58% $29.00 $15.76 840E $29.00 $21.7 330E $25 90 $20.25 280/ $29.81 $16.88 77% INYO 18,242 $28.43 $18.86 510E $29.00 $18.01 61% $36.35 $24,76 47% $24.76 $16.52 500E $28.17 $20.35 38% KERN 688,875 $28.43 $17.40 630E $29.00 $16,20 790E $28.94 $20,80 39% $24,76 $19.89 24/, $29.17 $17.72 590E KINGS 133,553 $23.2 $22.26 50/ $23.77 $23.24 20/ $27.10 $21.02 290/, $24.80 $15.55 59% $28.79 $18.2 570E LAKE 60,519 $2127 $18.84 = 24°/ $23.77 $14.75 61'% $32.13 $23,96 34% $38.05 $20.49 860E $41.00 $18.74 1190E LASSEN 34,237 $23.27 $21.11 100E $23.77 $15.08 580E $32,21 $18.32 76% $31.05 $16.91 94"/ $28.79 $19.18 50% LOSANGELES 9,817,419 $29.00 $21,04 380E $29,00 $18.63 56 $30.45 $20.22 51% $29.41 $2058 430/ $29.81 $19.69 51% MADERA 130,373 $23.2 $17,43 340E $23.77 $15.48 540E $27.10 $18.14 49%, $24,90 $19.20 29% $28.79 $19,96 44% MARIN 248,490 $29.75 $26.63 120E $29.75 $20.24 130E $32.13 $30.78 4% $38.05 $21 17 800/ $41.00 $28.9S 42% MARIPOSA 17,08 $2327 $18.86 230E $23.77 $18.01 320E $32.02 $24,76 29% $17.5 $16.52 6°/ $29.29 $20.35 44% MENDOCINO 87,552 $23.27 $18.84 24'/d $23.77 $14.75 610E $32.13 $23.96 340E $3905 WAS 86% $41.00 $1 8.74 1190E MERCED 219,554 $23.2 $162 43% $23.77 $19.32 230E $29,02 $20 68 40% $28.19 $15 72 79% $29,29 $17.7 65% MODOC 9,353 $23.2 $21.1 1 10% $23,77 $15.08 580E $26.66 $19 32 46% $31 05 $1691 840E $28.79 $19.18 50% MONO 13,24 $28.43 $18.86 51% $29.00 $18,01 610E $36.35 $24.76 47% $24,76 $16.52 50°/ $28.17 $20.35 38% MONTEREY 40908 $24.62 $21.61 140E $24.62 $26 06 -6/ $33.01 $24.28 36% $30.78 $22.44 37% $31,89 $19-44 640E NAPA - 128,132 $29.75 $22.93 30% $�)2( 75 $19 72 5(i $33.65 $34.86 -3 i $38.05 $'�0.01 901% $33 )0 $1).6 72/ NEVADA 94990 $23.2 7 $21 111 100E $23,77 $15.08 580E $32,21 $18.32 76% $31.05 $1691 84% $29.40 $19.18 530E Prepared by CICG 56 6/9/2004 Carpenter Drvwall Installer Electrician FIVAC/Sheet Metal Worker Plumber Percent Percent EDD Percent EDD Percent F,DD Percent DIR EDD by which DIR EDD by which DIR Mean by which DIR Mean by which DIR Mean by which Commercial Mean Market DIR rate is Commercial Mean Market DIR rate is Commercial Market DIR rate is Commercial Market DIR rate is Commercial Market DIR rate is Count• Population PW Rate Wage Rate Greater PW Rate Wage Rate Greater PW Rate Wage Rate Greater I PW Rate Wave Rate Greater PW Rate Wage Rate Grcater ORANGE 2,930,488 $29.00 $21,55 35% $29.00 $20,85 39% $31.10 $23.46 33% $2241 $21.40 37% $29.81 $19 291 5-5 PLACER 265,683 $23.27 $20.5 13% $23,7 $16.48 44%n $32.21 $21.85 47 $31.05 $21.33 46%n $29,40 $19.12 541/, PLUMAS 20,964 $23.27 $21.11 10% $23.77 $15.08 58°% $32.21 $18,32 76%n $3105 $16.91 84% $28,79 $19.18 50°% RIVERSIDE 1,645,319 $29.00 $18 17 60% $29.00 $19.49 49% $28.58 $22.01 30% $29.41 $18.05 63%n $29.81 $15 84 88% SACRAMENTO 1,280,920 $23.27 $20.5 13% $23.7 $16.48 44 $3221 $21.85 47% $31.05 $21.33 46% $30.9 $19,12 62% SAN BENITO 55,618 $24.62 $22.26 11% $24.62 $23.24 6% $33.01 $21.02 57%n $30,78 $15.55 98% $45.51 $18.29 149% SAN BERNARDINC 1,788,479 $29.00 $18.1 60% $29.00 $19.49 49% $28.35 $22.01 29% $30.00 $18.05 70% $29.81 $15.84 881% SAN DIEGO 2,908,505 $24.60 $17.8 39 $22.05 $17.84 24% $29.00 $20,72 40% $25.90 $18.63 39% $29.81 $20.00 49°% SAN FRANCISCO 789.062 $29.75 $26.63 12% $29.75 $26.24 13/, $45.55 $30 78 481/(, $3Z05 $21 17, 75%n $41.00 $28.95 42% SAN JOAQUIN 596,907 $23.27 $20.92 H,/ $23.7 $18,85 26% $28.19 $22.26 271/,, $2737 $17.90 53°/, $29,29 $21.00 391y" SAN LUIS OBISPO 153,043 $2900 $17.23 68% $29.00 $16,76 73%n $27.25 $23.58 16%, $27.28 $26 10 5% $29.81 $21.00 42% SAN MATEO 714,414 $29.75 $26.63 12%n $29.75 $26.24 13%n $42,3 $30 78 3 S%J $37 74 $21.17 78%n $39.40 $28.95 36% SANTA BARBARA 406,176 $29,00 $22.70 29 $29.00 $18.48 57%0 $30.81 $23,96 29%n $27.28 $20.50 33'%, $29.81 $24.22 23 SANTACLARA 1,716,755 $29.75 $21.86 36% $29.75 $26,65 12°/d $42.57 $27.34 561/, $37,94 $24.83 53% $45.51 $28.95 58% SANTACRUZ 258.399 $24.62 $23,49 5% $24.62 $19.88 24%n $33.01 $27.85 19% $32.32 $20.64 571//,� $31.89 $20.70 54%n SHASTA 169,277 $23.2 $19.84 17% $23.7 $16.69 42% $32.21 $17,29 86%n $31.05 $20.93 48%n $28.79 $16.00 80 SIERRA 3,522 $23.217 $21.11 10% $23.7 $15.08 586G $3121 $18.32 76 $31.05 $16.91 84% $28.79 $19.18 50% SISKIYOU 44,329 $23,27 S21.1 I 10% $23.7 $15.08 58% $26.66 $18.32 46% $31.05 $16.91 84% $28.79 $19.18 50%n SOLANO 405,642 $29.75 $22.93 30% $29.75 $19.72 51./4 $33.65 $34.86 -3% $38.05 $20.01 90% $33.90 $19.6 72% SONOMA 468.583 $2y.75 $22.02 35% $29.75 $18.74 59% $32.13 $23.3 37% $38.05 $20.75 83% $41.00 $25.5 60% STANISLAUS 469,969 $23.27 $17.32 34% $23.77 $20.08 18% $29.02 $20.0 45%n $28.18 $20.26 39%n $29.29 $19 52 58%, SUTTER 81,561 $232 7 514.59 59% $23,77 $12.63 88% $32.21 $23.90 35°/ $31.05 $19.40 60% $28.79 $24.41 18%, EHAMA 56,911 $232 $21.11 10°/ $23.77 $15.08 58% $32.21 $18.32 76% $31,05 $16.91 84% $28.79 $19.18 50% TRINITY 13,059 $23.2 $21.11 10% $23.77 $15.08 58% $3221 $18.32 76% $31.05 $16.91 84 $28.79 $19.18 50% TULARE 378,477 $23.27 $16.14 44% $23.7 $20.90 14% $27.10 $16,86 61% $28,52 $18.91 51% $28,79 $18,09 54% UOLUMNE 55,859 $23.27 $18.86 23°% $23.7 $18.01 32% $29,02 $24.76 17% $27.3 $16.52 66% $29.29 $20,35 44% VENTURA 778,423 $29.00 $17.76 63% $29,00 $22.59 28% $32.60 $23.01 42% $2728 $21.19 29% $29.81 $17,85 67% YOLO 176,280 $23.27 $22.45 4 $23.77 $21.74 9% $32.21 N/A N/A $31.05 $19.58 67% $30.97 $21.18 46% YUBA 61,763 $23.27 $14.59 59% $23.77 $12.63 88% $32.21 $23.90 35% $31.05 $19.40 60% $28.79 $24.41 18'% Simple Avera e: 280/, 43% 41% 61% 56% Population Weighted Avg: 360/ 1 41% 40% 53% 55% Sources: see Appendix D. Prepared by CICG 57 6/9/2004 Appendix E: Figure 1. California DIR Commercial Prevailing Wage Rates vs. EDD Market Rates for Drywall Installers (Percent by which DIR prevailing wage is greater than EDD market rate) -6 - 6% Greater 6 Greater UNN 18 - 28% Greater 28 - 39% Greater 39 - 51% Greater 51 - 61% Greater 61 - 88% Greater Sari B�svc i -: �L q + Prepared by CICG 58 6/9/2004 Appendix E: Figure 2. California DIR Commercial Prevailing Wage Rates vs. EDD Market Rates for Electricians . (Percent by which DIR prevailing wage is greater than EDD market rate) 0 - - 4 fa Greater 4 - 1 °gip Greater 19 - 33% Greater 33 - 42% Greater 42 - 51 v Greater 51 - 61% Greater 81 - 86% Greater e V�u 11 w f; S £3 S - Prepared by CICG 59 6/9/2004 Appendix E: Figure 3. California DIR Commercial Prevailing Wage Rates vs. EDD Market Rates for HVAC/Sheet Metal Worker (Percent by which DIR prevailing wage is greater than EDD market rate) 8 5 - 7% Greater 7 - 33% Greater n 33 - 43% Greater 43 - 57% Greater 87 - 70% Greater 70 - 98% Greater 98 - 115% Greater Soo u aaV Prepared by CICG 60 6/9/2004 Appendix E: Figure 4. California DIR Commercial Prevailing Wage Rates vs. EDD Market Rates for Plumbers (Percent by which DIR prevailing wage is greater than EDD market rate) f. 18 - 23% Greater " 23 - 44% Greater 44 - 51% Greater 4 51 - 601/6 greater 80 - 72% Greater 72 - 88% Greater 88 - 149%.Greater h 5 x y `4.dBd3� F" .'�fi33 B�baPa 'r ` y€a i., Prepared by CICG 61 6/9/2004 Appendix F: Table 1. Comparison of Davis=Bacon Commercial Prevailing Wage Rates with DIR Commercial Prevailing Wage Rates (Includes all Available Davis-Bacon Rates Regardless of Date of Last Update) Carpenter Drywall Installer Electrician HVAC/Sheet Metal Worker Plumber Percent Percent Percent Percent Percent Davis-Bacon DIR by which Danis-Bacon DIR by which D-s-Bacon DIR by which Davis-Bacon DIR by which Davis-Bacon DIR by which Commercial Commercial DIR rate is Commercial Commercial DIR rite is Commercial Commercial DIR rate is Commercial Commercial DIR rate fs Commercial Commercial DIR rate is County - Population PW Rate P,V Rate Greater P\V Rate MV Rate Cicala PW Rate PW Rate Greater PW Ralc PW Kale Greater PW Rate PW Rafe Greater ALAh IEDA 1,484,698 $2975 $29.75 0% $2975 $29]5 01/1 $37.0 $37.0_ 0% $34.56 $365' G% $35.51 $15.51 0% ALPINE 1,21 $23 27 $23 27 0^/ $23]7 $23.77 0% $32 21 $32.21 0"/0 $27 3 $27 37 0"'o $29 21 S29 2' 0^/ AMADOR 36,04 $1858 $23 27 251 $I8.14 $23 77 31% $16_3C $3221 98% $1837 $31.05 69°0 $2088 $29.21 40% BUTTE 207,31 $23 27 $23 27 01 $23 77 $23.77 0% $32 21 $32.21 0"/n $11.55 $31.05 -2",'0 $28.2 $28 7 0% CALAVERAS 41,82 $23.27 $23 27 0% $23.77 $23.77 0% $28.1 q $28.I1 0% $27,37 $27.37 r 0% $2929 $2929 0% COLUSA 19,341 $23 27 $23 27 0% $23 77 $23.77 0% $3Z 2 11 $32.21 0".' $31.55 $3105 -2% $28.7 $28.7r 0% CONTRA COSTA 980,87 $29.75 $29.75 0% $29.75 $29,75 0% $37.51 - $37.51 01/1 $34.5C $36.5( 6% $35 21 $35 21 0% DEL NORTE 27,69 $1908 .$23.27 22% $19,08 $23 77 25% ,$17A1 $26.12 50% $18.65 S2192 1S11/1 516.47 $30.93 88% ELDORADO 163,649 S23 27 $23 27 0% $23 77 $23.77 0% $3221 $32 21 01//1 $3 1 55 $31 05 -2% $25 45 $29 4( 16% FRESNO 827,310 $23 27 $23 27 0% $23.77 $23 77 0% $27,1 C $27 1 ii 0% S2852 $24.8 C, -11", $28.7 S28.7 0% GLENN 26,747 $23 27 $23.27 0% $23 77 $23.77 0"/n $32.21 $3221 0% $.11.55 R11.05 $2921 $287 _­ HUMBOLDT 127.305 $19,08 $23 27 22% $19.08 $23.77 25% .$1741 $26.1' S09'� $18.65 $21.92 18"n 516.47 $30.93 88% IMPERIAL I50,217 $2901 $3900 0"/n $220( $29.(1( 01/ 53021 $29.00 -4% $259f $25.9 0, Orin $2981 $29.81 0% INYO 13,242 $28.42 $28.43 0% $29.00 $2')00 0% $35''25 .$7635 3°% `628.99 $24.76 -Is'�,, $2767 $21,17 2% KERN 688,875 $28.43 S28.41 0% $29.00 $29(1( 0% $2914 S28.84 -24, $2709 $2 70 29r_ $25,34 $28,17 11% KINGS 133,5531 $23 27 $23 27 0% $23 77 $23.77 0% $27 1C, $271 0% $28.52 $24.8 -131/1 $2R.7( $28 7) 01 LAKE 60.51 $19.08 S23,27 22% $19.08 $23 77 2591, $17.4! $3213 95% $27,17 53805 40"S, $29,84 $41 00, 17% LASSEN 34,237 $23 27 $23.27 01/1 $23.77 $23 77 0% $32.21 $3221 0% $31.55 $31.05 5292 $2R.79 -?% LOSANGELES 9,817,41r $220 529.00 0% $29.00 $29.00 0% $29,7 $30 451 3"% $29.41 $29.41 U"/, $2981 $29B1 0% MADERA t3Q373 $23.27 $23.27 0% $23 77 .$13.77 0% $27.1 $27 1 0% $28,52 $24.8 -13'% $2R.7 $28 79 0% MARIN 248,49(l $29.75 $29.75 0% $29.75 $2975 0% $32,13 $32.13 0"/ .538.8( ,S3805 -2% $36.05 S41 00 14% MARIPOSA 17,037 $23 27 $23 27 0% $23 77 $23 77 0% $29.1 $32.02 10% $28.18 $17.57 -38°/ $2929 $29 29 0% MENDOCINO 87,552 $19.08 $23 27 22% $19.08 $23.77 25% $17.41 $3213 85°r' $2717 $35.05 40% $29.84 $41.00 37% . MERCER 219,55 $23 27 $23.27 0% $23 77 $23.77 0% S29.17 $29 02 -1% $-8 18 $28.18 0';6 S29.2.11 $222 0% MODOC 9,353 $23 27 $7327 0% $23.77 $23.77 0r/ $26 26 .$26 GC 2% $31.55 $31 05 -2'% $28.79 $28.7 0% MONO 13247 $2843 $28.43 ()% $29 O( $290 0% $3525 53635 3"n $2R.9 $24.76 -15"n $27b7 $2317 2% MONTEREY 409,608 $24.62 $2462 0% $24'".61 $24.62 0% $32 01 $33.01 34' $31.41 $30.78 -2% $3I.$' $3 1,8 0% APA 128,132 $29.75 $29.75 0% $39,75 $29.75 0% $30.65 $3365 10'% $38,8( $3805 -2"� $339 $339t 0% EVADA - 94,98 $23 27 $23 27 0% $23.77 $23.77 0% $32.21 $32 211 0% $31.55 $31 OS $25 451 $29.4( 16% Table.I Continued Carpenter Drywall Installer Electrician HVAC/Sheet Metal Worker Phtmber Prepared by CICG 62 6/9/2004 Percent Percent Percent Percent Percent Davis-Bacon DIR by which Davis-Bacon DIR by Which Davis-Qacon DIR by which Davis-Bacon DIR I which Dav-Bacon DIR by wch C'onunercial Commercial DIR rate is C'onnnercial Commercial DIR rate is Commercial C'onnnercial DIR rate is C-n c,'cmI Commercial DIR rate is athi Commercial Coonnercial DIR re is Count' Population PW Rate PW Rate Greater PW Rate P\V Rate Greater PW Rate PW Rate <ireatei P\V Ralc PW Rate (neater PW Rate P\V hate Greater ORANGE 2930,488 S29.0 $29,00 0% $21)00 $29.0( 0% $31.85 $31.1 -2% $289 $29.41 1"'„ $29.81 529.81 01/1 PLACER 2G5,683 $23.27 $23.27 0% $23 77 $23.77 0"/ $3221 $32 21 0"/" $?155 $?1.05 -21/1 $25.45 $'_9 4 I PLUMAS 20,76 $23.27 $23.2 0% $2377 S23.77 0% $3121 $3221 01i $3I.55 $?1.05 -_ $21,.71 $2S.71 0% RIVERSIDE 1,645.31 $2200 $39.0 0% $29.00 $29.0 0% $29.23 $2853 -21/1 $29.41 $29.41 n"/ $2e,31 $2981 0% SACRAMENTO 1,280,920 $23.27 $23.27 0'% $2377 $23.77 01/1 $32.21 .$3221 0°% .$31.55 .$31,05 -2"%" $30.97 $1007 0% SAN BENITO S S,GIS $24.62 $24.62 0'X. $24.62 $24.62 0% $32.01 ,$33,01 3% $31.41 $30.73 •?% $45.51 $45.51 0% SAN BERNARDINO 1,788,479 $29,00 $29.00 0% $2900 $29.0 0% $28.25 $28.35 0% $27.41 $30.6 4% $3I.4C $2251 -5% SAN DIEGO 2,908,505 $1.2,90 $24.60 7% $1855 $22.05 19% $3021 .$29.0( -4% $26.9( .$25.9( -4'% $3094 $29.31 -4% SAN FRANCISCO 789,062 $2275 $2275 of $29 75 $2275 ni $asss $45s5 o�� $37 01) $37 m n";" $41.o( $41.00 of SAN JOAQUIN 596,907 $23,27 $2327 0% $2377 $23.77 0% $28.1 $28_I 0"i $27 37 $27.37 0".;, $292 $29.20 oY SAN LUIS OBISPO 253,00.3 $,'9 oo $27.00 D% $29.00 $290 0% $27 25 $2725 0% $2728 $27.2 0"/" $29.81 $29.81 OY SAN MATED 714,41 $29J5 $29.75 0% $29J5 $2975 0% $42.3 $42.37 0°r' $36.83 $37 74 2"/ $4465 $39.40 -3"/ SANTA BARBARA 40e,176 $2e.00 x29.00 oi, $2900 $2e.00 ov $30.83 s3091 0111,1 $27 28 x27.28 a^„ $3041 x2981 -�i SANTA CLARA 1,71 G,755 $29.75 $2275 0% $29.75 $29.75 0% $42.5 $42 57 0"/ $37.65 S37 IM I"•o .$4551 $4551 0"/ SANTA CRUZ 258,398 $24.62 .$24.62 0% $24.62 $2462 0% .$32.01 $33(11 3"., $32.95 10237 _ .$31.81) 0% SHASTA 169,27 $23.27 $23.27 0% $2377 523,77 0% $32.21 $32.21 Oi $31-55 $?I.OS _ $23.71 $29.79 0% SIERRA 3,522 $23.27 $2327 0% $2377 $23.77 0% $322I $3221 0°/n $3155 $31.05 - -2% $28.7 $21S,79 0% SISKIYOU 44,329 $2327 $23.27 0"/ $23.77 $23.77 0% $26.26 $26.66 2% $31.55 $3105 -210 .$28J_ .$28.7 0% SOLANO 405,64 $29.75 $29.75 0% $2275 $29.75 0% $30.65 $33.65 10% $38,96 138.05 -2% 533.90 .$33.90 0% SONOMA 468,583 $2975 $29.75 0% $29J5 $29.75 0"/ $32.13 $32_I3 0% .$3 R_8G .$38105 -2% $36.05 $41 00 141/ STANISLAUS 469,969 $2327 $2327 0% $23.77 $23.77 0% $29.1 $29.02 -I% $28.I8 $28_I8 0% $29,29 $222 0% SUTTER 81,561 $23.27 $2327 0% $23.77 $23.77 0% $3221 53321 0% $31.55 $31.05 -2'!'" $2S.79 $28,7 0% - EHAMA 56,911 $23.27 $23.2 0% $23J $23.77 0% $3221 $32.21 0% $31.55 $3105 -2% $29.2 $28,7 TRINITY 13.05 $23.27 $2327 0"/ $23.77 $23.77 - 0% $32.21 $.32.21 0% $22.3 $31 OS 39"/" $29.7 $28.7 0% ULARE 378,477 $13.36 $2327 74% $23_77 $23.77 0"/ $27,1 $27 10 0% $28,52 $28.52 O% $2879 $28.7 0% UOLUMNE 55,95 $23.27 $2327 0% $23,77 $23,77 0% $2()17 $29.02 -I% $28,18 $27,37 -3% $2929 $292 0% VENTURA _ 778,423 $29,00 $39.00 0% $2900 $29.0 0% $31.60 $32.6 3% $27.28 $2728 $2281 529.81 0"/ YOLO 176,280 $23.27 $23.27 0% $23.77 $23.77 O% $32.21 $32.21 0% $3155 $3 LOS -211/ $30 97 $30.97 0% YUBA 61,763 $23.27 S23.1,71 0"/ $23.77 $23.77 0"/0 $32.21 $3221 0% $31.55 $3105 -2".0 $28 79, $29.7 0% Simple Average: 58 counties) 3%, 58 counties) -3% 58 cwnrties 7% (58 counties 1, (58,( ies) 6'%, Population Weighted Avg 100.0%of POD.) 2% 100.0%of Po 2"/n 100.0%of Po 1% 100.0%of Po 0%, 100.0%of Pn I Sources. see All,mhx 1). Prepared by CICG 63 6/9/2004 Appendix F: Table 2. Comparison of Davis-Bacon Commercial Prevailing Wage Rates with DIR Commercial Prevailing Wage Rates (Includes Only Recent Davis-Bacon Rates, or Those Updated Since June 1, 1999) Carpenter Dr wall Installer Electrician HVAC/Sheet Metal Worker Plumber Percent Percent Percent Percent Percent Davis-Bacon DIR by which Davis-Bacon DIR by which Davis-Bacon DIR by which Davis-Bacon DIR by which Davis-Bacon DIR by which Commercial Commercial DIR rate is Commercial Commercial DIR rate is Commercial Commercial DIR rate is Commercinl Commercial DIR rate is Commercial Commercial DIR rate is County Population PW Rate PNV Rate Greater PW Rate PW'Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Cncaier PW Rate PW Rate Grcater LAMEDA 1,484,698 $29.75 $29.75 m/ $2275 $2275 0% S37,0C $37.0 0% $34.5( $36 59 6% $35.51 S3551 0^/n ALPINE I,21 $23 27 $23 27 0% $23.77 $23.77 0% .$32.21 $32.21 0% .$27.37 $27.37 0% $292' $29.2') AMADOR 36,04' (Jul-85)N/A $23 27 N/A (Jul-85)NI $23.77 N/A (,lul-85)N/A $3221 N/A Clul-RS)N/A $i l_05 N/A 00-35)N/p $2929 N;A BUTTE 267,310 $2327 $23.27 0% $23.7 $23.77 0",' $32.21 $3221 0% $3 L55 $3 LOS -211, $28.71 $28.7() 01,' CALAVERAS 41,820 $23.27 $23.27 0% $23.77 $23.77 0% $28.1 $28.1 00 $2737 $27.37 - 0%i $29.2' $29.21 Or' COLUSA 19,341 1 $23 27 $23 27 0% $23,77 $23.77 0% $3221 $32.21 01/0 $31.55 $31 05 :% $29.7' $28.7' 0% CONTRA COSTA 980,970 $29.75 $2275 0% $2275 $29.75 0% $37,51 $37.51 0% $14 5( $3659 6/, $3521 $35 2 11 01r6 DEL NORTE 27,69 (.tun-86)N/A $23,27 N/ (,tun-86)N/A $23.77 N/A (.tun-86)N/ $26.12 N/A (,Iun-86)N/A $21.92 N/A (Jun-86)N/A $30.93 N/A ELDORADO 163,64' $23.27 $23.27 0% $23,77 $23.77 0% $32,21 $32.21 0% $31.55 $3105 -2% $25.45 $29.40 16"/ FRESNO 827,310 $23,27 $23,27 0% $23,77 $23.77 0% $27.1 C, $27.1 C 0% $28.52 $24_9 -13% $28.7 $2S.7 Oi GLENN 26,747 $23.27 $2327 0% $23.77 $23,77 0^/ $32.21 $32.21 0% $31.55 $31.05 -21/1, $29.2 $28.71 -2l HUMBOLDT 127,305 (Jun-86)N/. $23 27 N/ (Jun-86)N/ $23.77 N/ (Jun-86)N/A $26.12 N/ (Jun-86)N/A $21 92 N/Ai(.tun-86)N/A $30.93 N/A IMPERIAL 150,21 $29.00 $29.0 0% $29.0 $29.0 0% $30.21 $220 -4"/n $25.9( $25.90 0^/ $29.81 $29.81 0% INl'O 18,242 $28,43 $28,43 0% $220 $29.0 0% $35.25 $36.35 3% $28.9' $24 76 -1 5% $27 67 $28 17 2 KERN 688,875 $28.43 $28.43 0^/ $29.00 .$29.0 011/1 $29.34 $28.8 -2% $27.0' $24.76 -9% $25.34 $28.17 I I KINGS 133,5531 $23.27 $23.27 0% $23.77 $23.77 0% $27.1( $27.1 0"/ $28,52 $243 •1311, $287", $28.71 0^r" LAKE 60,51 (,tun-86)N/A $23 27 N/A (Jun-80)N/A $23,77 N/A (Jun-86)N/A $32,13 N/A (,tun-86)NIA $38 05 N/A (Jun-86)WA $41.00 N/A LASSEN 34,237 $23,27 $23.27 0% $23.77 .$23.771 $3221 $32.21 0% $31.55 $31.05 -2% $292 $28.7' -2% LOSANGELES - 9,817,419 $29,00 $29 00 0"/0 $29 OG 0% $29.7 $3045 3% $29.40 $29.41 O S29.81 MADERA 130,373 $23,27 $23 27 0% $23.77 $2377 1)/n - $21I $^-7.1 0% $28.52 $24.3 -13% $23.7 S2R.7 0^,S MARIN 248,49 $2275 $2975 0% $21)75 $2275 0% $3213 $3213 0% $18.86 $3805 -2% $36.05 $41 0 14"./ MARIPOSA 17,08 $23.27 $23 27 0% $23.77 $23.77 0% $221 $32.02 10% $23.18 $1757 -381/1 $2921 $292' 04/ MENDOCINO A7,55^ (,tun-86)N/A $23 27 N/A (Jun46)N/A $23 77 N/A (.Inn-86)N/A $32.13 N/A (Jun-86)N/A $38.05 N/A (lan-86)N/A $41 00 N/A MERCED 219,55 $2327 $23.27 0% $23.77 $23.77 0% $29 I $2902 -I% $28.18 $28.18 0% $292 $29.2' 0% MODOC - 9,353 $23.27 $23.27 0% $23,77 $23,77 0% $2626 $26.6( 2% $31.55 $31.05 -2% $28.7') $28,79 0% MONO 13,247 $28.43 $23.43 0% $220 $220 0% $3525 $36.35 3"/n $28.W- 524.7( -IS% $27.67 $28.17 2% MONTEREY 409,60N $24.62 $24_G2 0% $24.62 $24.62 0% $3201 $3301 3"/0 $31.41 $30.78 -?% $31.8 $31.8 0% NAPA 128,13 $29.75 $29.75 0% $29.75 $2275 0% $30.65 $33.65 10% $38.8( $38.05 -2% $33 1)0 $33,9( () NEVADA 94 9R $23.27 $23.27 0% $23.771 $23.77 - 0",' $3221 1 $3 Z21 0"/0 $31.55 $3I.OS -"% $25 75 $29=!0 I C, Prepared by CICG 64 6/9/2004 Carpenter Dr wall Installer Electrician ❑VAC/Sheet Metal War•ker Plumber Percent Percent Percent Percent Percent Davis-Bacon DIR by which Davis-Bacon DIR by which Davis-Bacon - DIR by which Dmis-Bacon DIR by which Do%is-Bacon DIR by which Commercial Commercial DIR rate is Commercial Commercial DIR rate is Commercial Commercial DIR rate is Commercial C,,mmeicial D1R rate is Commercial Commercial DIR rate is Count- Po elation PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater ORANGE 2,930,499 $29.0 $29,0 0% $29.0 $2900, 0% $31.85 $31.1 -2% $28.9 $29,41 I% $29 RI $228I 0% PLACER -2"r S'-545 .S29.4r 16% 265,683 $23.27 $23.27 0% $23.77 $23.77 0"/. $32,21 0"�$32.21 $31 55 $3 LU5 PLUMAS 20,96 $23.2 $23.27 0% $23.7 $2377 0% $i2.21 $32.21 0% $31.55 $31,05 -2% $2R.71 $^_R 71 09h RIVERSIDE IG4S71 $219,00 $29.0 0% $29.00 $29 0e, 01/1 $2923 $28.58 -21/; $2941 $2241 Oi $29.81 $29.81 0% SACRAMENTO 1,280,92 $23.2 7 $23.27 W/1 S23.771 $23.77 0'% $32 2I $32.21 01/1 $31.55 $31.05 -21! S30.07 $30,97 SAN BENITO 55,6I8 $24,6 $24,6 01V, $24.62 $2462 0% $32,01 $33.01 39/i $31.41 $30.75 -2"i $45.51 .$45.51 (P'/o SAN BERNARDINO 1,788,479 $29.00 $29.0 0% $29.00 $29.0 0"/ $2825 $28.35 D% $29A1 $301,( 4"ro $314( $39_8I -5"/n SAN DIEGO 2,908,505 $2Z90 $24.0 7% $18.55 $22,05 19% $30.21 $29A0 -4""/ $26.9 525.90 -49r S30.Q4 S29.81 -4"r;, SAN FRANCISCO 789,062 $29.75 $29.75 0% $29.75 $29.75 0'% $45.55 $45.55 01/ $37.0' $37.05 0% $41.0() $4I.0 0"1fi SAN JOAQUIN 596,907 $23.2 $23.27 0% $23.7 $23.77 0% $28.11 $28.1 01/. $27 i7 $27.37 0% $29.2' $29?1 0% SAN LUIS OBISPO 253,043 $220 $29.0 0% $220 $2R0 0% $27.25 $27.25 0% $27.28 $2728 0% $29.R1 $2281 0% 'AN MATED 714,41 $29,75 $29,75 0% $29.75 $29.75 0% $42.37 $4237 0"/ $3(,.83 $37.7 2"%ES4 $40.G5 $39,4 -3^/" ANTABARBARA 406,17 $29A( $29.Of 0's'" .$29.0( $29.0 0"ri $30,83 $30.81 0"/ $27.28 $27.25 U"i $30A' $29.81 - SANTA CLARA L716,755 $29.75 $29.75 0"I $29.75 $29.75 0",' $42.5 $42.57 0% $3ZG5 $37.94 I°i5.51 $45.51 0"/nSANTA CRUZ 258,398 $24.6 $24.6 U'Y $2462 S<4.62 0% S32.01 $33,01 3"' $32.95 .$3212 -2% $31.8f $31, 0"/" SHASTA I69,277 $23.2 $23.27 0% $23.7 $23.77 0"/ $322I $12.21 0"r $31.55 $}LUS $29.71 $29 71 SIERRA 3.522 -$23 27 523.27 U"•6 $23.77 $23 77 (1^/ $32.21 $32 21 011 $31.55 $3l f15 S'S Tj $28 T SISKIYOU 44.329 $2317 S23 271 01!n $23.77 $23.77 0% $262t $20 6( $31.55 $3I.0i -2'1," $28 T) $28.71 SOLANO 405,642 $29.75 $29.75 0": $29.75 $29.75 0"r' $30.65 $33.6> 10% $38.86 .$3895 -2"rh $3300 .S33.9() SONOM,4 468,583 $29.75 $29.75 0".' $29.75 $29.75 0% $32.13 $3213 0"/ $38.86 $38.05 -2"I $3605 $41.00 14".'" STANISLAUS 469,96' $23.27 $23.27 0°/" $23.7 $23:77 0% $29.17 $29.02 -I"/ $28.18 $29.18 0".r $29.2' $2221 0% SUTTER 81,561 $23.27 $23.27 0% S21771 $23.77 0% $32.21 $32.21 0% $31.55 $31 05 -tin $28.71 $28 79 01r;, EHAMA 56,911 $23.2 $23 271 01/11 $23,7 $23.77 0% $32.2I $3221 0% $31.55 $31 05 -2"r $291' $28.7 -2% TRINITY 13,059 $23.27 $23.27 0% $23,77 $23.77 0"/ $32 21 $32-21 0% $22.34 $31.05 .39% $28.7 $29 79 0% ULARE 378,477 (Oct-84)N/A $23.27 N/A $23.77 $23.77 0"/ $271 $27.10 0% $28.52 .$28.52 0".4 $28.T $28 7q 0% UOLUMNF.. 55,85' $23.27 $23.27 0"/ $23.77 $23.77 U% $29.17 $2202 .I% - $28.IR $2737 -3"r" $29.2 $29.2 VENTURA _ 778423 $29.0 $29 00 Oi $290 $29.0 0"/ $11.60 $32,60 3% $27.28 427.28 01!6 $29.81 $29.91 0% YOLO 176,2M $23.27 $23.27 0"/0 23.77 $23,77 (1% $32,21 $32.2I 01.' $31.55 $3I.0$ -2% $3097 $30.97 0% YLUBA 61,763 $23.2 $23.27 011/1 $23.77 $23.77 0"/ $32.2I $3221 0'% $31.55 $3 LUS -2i $2R.T $28.71 0%1 Simple Average: (52 counties) 011/. 53 counties 01% (53 counties) 1'% 53 cmmfies -2'% (53 camfies) I'% Population Weighted Av 97,9%of Pop.) 1% 99.0%of Po 2'% 99.()%of pop.) 0'% 99.(1'%of Pu r. 0'% 99.0'%of Poll.) 0'% Soorce,s: see.41yendix U. Also,the filtered Oavis-Macon data ahnre is denoted with an'N A"and the date on it the datu.series e•ere/as/updated. Prepared by CICG 65 6/9/2004 Appendix G: Table 1. Comparison of Davis-Bacon Commercial Prevailing Wage Rates with Davis-Bacon Residential Prevailing Wage Rates (Includes all Available Davis-Bacon Rates Regardless of Date of Last Update) Carpenter Drvwall Installer Electrician IIVAC/Sheol Metal Worker Plumber Dacus-Bacon Davis-Bacon Pet by mhieh Davis-Bacon Danis-Bacon Po by wluch Davu,13aeon Davis-Bacon Pet by which Daws-Bacon Davis-Bacon Pct by which Davis-Bacon Davis-Bacnn Pet by Mhieh Residential Commercial Cmntnorcial Residential Commercial Commercial Residential Cmm�tcrcial Commercial Residential (' n ercial Cbmmerclal Residential Crnnmercial ('ommercial County Po ulation PW Rate PW Rate Rate is Greaten PW Rate PW Rate Rate is Greater PW Rate PW Rate Rate is Greater PW Rate PW Rate Rate is(Beater P\4 Rate PW Rat Rate is Greater ALAMEDA 1,484,698 $284 $29.75 5% $29,0 $20 75 3% $31 94 $37.00 16",' $30 83 $3a.56 12"r. $35,51 5.35 51 0"' ALPINE 1,210 $13,00 $23.2 79% N/A S23.7 N/A $12(1 $32,21 154'% N/A $27.3, N/A $10.25 $292' IRn% AMADOR 31,049 $IR.SR $1958 0% $19,14 SIR I� 011' $16.3( $16.3 0% $18-3 $I9.3 0",4 $20.88 $211.R8 011 BUTTE 207,310 $9.63 $23 27 142% $9,7 $237 143% $1)OC 25RY $1368 S31.55 131"' $14A0 $2971 106% C'ALAVER.AS 41,820 $22.17 $232 5% $23.52 $23 77, I"/1 $28.I $28,19 0% $20,53 .$27.3 33% $31.50 7"/ COLUSA 19,3411 $11.30 $23.2 106% .$16.33 $23.7 46% S9.8 $3121 226% N,A $31-55 N/A NIA $28,79 N/A CONTRA COSTA 980,870 $28.4 $29.75 5% $29,0 $2975 31,' $35.01 $37.51 7, $3().R3 $34SC 12"/ .$2741 %35.21 29% DEL NORTE 27,694 $19.08 $19.08 01G $11)08 $19,08 0% $17.41 $17.41 0% $18.65 S1865 0".' $16.4 $16.4 0% L DORADO 10.649 $22.1 $23,27 $23.52 $23.7 10' S26.1C �$3121 23y $289' S31,55 9"3 $19.(14 $2545 34% PRISNO 827,31 .$2124 $23.2 10% $15.0 $23,7 W, $17.8( $27.1C 52. N/A S'2952 N/A $IISn $29 7 150% GLENN 26,74 $11.3 $23.2 I(16"/ �41633 $23.7 46% $9.Rr $32.21 226"i NIA 53155 N/A N/A $292( NbA iUMBOLDT 127,305 $IR08 $19.08 0'% $19.08 $19.08 0% $1741 S17.41 Wl' NIA $18.65 N'A $164 $10.4 0% IMPERIAL 150,2 1 $18.7 529.00 14% $19(1 $29.0( 53'/,'j $19.41 $31121 56'% $2.5.41 $25.90 2".4 $24.31 $29.81 23 NYO 18,242 $13,0 $28,43 1191/ $1.5.0 $29,0 93% $126 S35.25 178,, N,A S28-91 N/, $1 0.0c 177% KERN 688,875 $212 $29 431 34% $15,0 .$29.0 931/1 $293 $29,34 0% N/A .$27.0' N/A $253 4 $25.34 0% KINGS 133,553 $6.3 $21.27 265% N/A S23,7 N/A $773 $27 101 251°' .$9-00 $28.52 217", $82$ $28.71 249% LAKE 60,51 $7.76 $19.08 146% $7.4 $120R 155% $7.4 $17.41 133i $6 32 S27 17 33 WI/ $7.47 $29,94 299% LASSEN 34,23 $9,86 $23.2 136% N/A $13 77 N/A $6.68 $3221 382% $7.76 $31 55 307% $9.0 $19 2Q 225% OSANGELES 9,917,419 $18.79 $29.0 54% S0,00 $29.0 53% $16.15 $29.70 84""/ $26.59 $29.4( II% $24.31 $29.81 23% ADERA 130,373 $21.2 $23 271 10% $15.0 $23 77 58% $17,80 $27.10 52% N/A S2952 N/ $11.5 $28.79 150% MARIN 248,4901 $28,4 $29,75 5% $29.0 $29.75 3% $20.95 $32,13 53% $31.30 $38.8 24% $27.39 $36.05 32% MARIPOSA 17,087 $22.1 $23.2i 5% $23.5 $23 77 1% $19.0 $29 17 54% $28-18 $28,18 0% $31.5 $222 .7% MENDOCINO 97,552 $7.76 $19.08 146% $7.4 $1908 15591, S7.4 $17,41 133% $632 S27.1 330% $7.4 $29,9 209% - ERCED 219,55 $212 $23.2 10% $15 00 S23.7 58',' $23.26 $29 17 25% N/ $28.18 N/A $11.50 $29.2' .155% MODOC 9,353 $9.86 $23 27 136% N/A $23.7 N/A $6,68 $26.26 293°,, S77(A S31.55 307% $9.0 $28.7r 220% ONO 13,2471 $13,00 $28.43 119% $15.00 $29.0 9 3',',1 $12,67 S35.25 179% N/A $28.99 N/A $10 00 S27 67 177% ONTEREY 409,608 $23.5 $24.62 5% N! $24-62 N/: $174 $32.01 84% $3141 $31.41 (1% $1I.5 $31.81 I% ,4PA 128,132 $28,4 $29.75 5% $29.0 $29.75 3% $18.5 $30,65 - 66% $313 $38.81 24% $29.9( $33.90 11% VADA 94,980 $22.1 $23.27 5% $23,52 $23.7 1% $26.1( $32,21 23% $28.9 $31.55 9% -$120 $25.45 34"' Prepared by CICG 66 6/0/2004 Table 1 Continued Carpenter Drywall Installer Electrician IIVAC/Sheet Metal Worker Plnmher Davis-Bacon Davis-Bacon Pet by which Davis-flacon Davis-Bacon Pei by which Davis-Bacon Davis-Raenn Pet by which Davis-Bacon Davis-Bacon Pet by which Davis-Bacon Davis-Bacon Pet by which Residential Commercial Commercial Residential Commercial Commercial Residential Commercial Conmtercial Residential Commercial Commercial Residential Commercial Commercial County Population PW Rate PW Rate Rate is Greater PW Rate PW Rate Rate is Greater PW Rate PW Rate Rate is Greater PW Rate PW Ram Rote is chats, PW Rate PW Raia Rate is Greater ORANGE 2,930,488 $18.79 $2?0 549,' $19.0 $21)oc 5;^1' $20.0 $31.85 59'%' $2658 S29.9 9% $24.31 $2Q91 23% LACER 265,683 $22.1 $23 27 5% $23.52 $23J 1% $26.1( $3221 231,1 $29.9 $31.55 0% $19.04 .$2S45 341i LUMAS 20,964 $I1.5 $23.2 101% N/A $23 77 N/A $9.0 $32.21 258% N/A $3 1 5 N/A S 14.of, S28.71 IOG% - _ RIVERSIDE _ 1,645,319 $18.7 $2Q 00 54% $1900 $29.0 531/ $170 $2223 72",, $2658 $2941 IPF" S24.31 $29.91 23% SACRAMENTO 1,284920 $2117 $23,27 5% $23.52 $23.7 1 $2e,16 $3221 23G Sg oq .831.55 9 1/1 $21.4.3 $30,9 45% SAN BENITO 55,618 $2352 $24.02 51,1, N/ $24,6 N/A $170. $32A1 84% $31.41 $31.41 oq 525 97 S45.51 76% SAN BERNARDINO 1,788,479 $19J $29.0 54% $19.0 $29.0 53% $23.111 $28,25 22% $26.58 $29.41 II% S24.11 $3,146 29% SAN DIEGO 2,908,505 $1832 $2290 25% $19,00 $18,55 -2% $23,61 $30.21 281G $17.83 $2690 5111, S24.31 $30()4 27% SAN FRANCISCO 789,062 $284 $29.75 5% $29.0 $29.75 3".' $3044 $45.55 25% $33.4 $370 9"1' S27.38 $41.0 50% SAN JOAQUIN 596,907, $21.2 $23.2 101/1 $15.0 $23 77 59% $28,1_ $28.19 01/1 N/A. $273 N/A $115 $2221 155% SAN LUIS OBISPO - 253043 $18.7 $290 54% $19.0 $290 53% $17.6 $2725 55% $27.28 $27.28 0% $24.31 $29.81 23% SAN MATED 714,414 $28.40 $29.75 5% $29.0 $2275 31/, $42.3 $42.37 0% $33,1 $36.83 II% $40.65 $40,65 0% SANTA BARBARA 406,176 $18.7 $220 54% $19.0 $220 530/, $19.49 $30,83 59 $27,28 $27.28 0% $24.31 $30,4' 251/ SANTA CLARA - - 1,716,755 $28.4 $29.75 5% $29.0 $29.75 3% $23.49 $42.57 RI% $34.12 $37.65 Ill"i S25,87 $45.51 769,/, SANTA CRUZ 258,3981 $23,52 $24.62 5% N/ $2462 N/ $17.42 $32,01 84% $32.95 $32,95 0% $31 5q $31.89 I% SHASTA 169,277 S9.91 S23,21, 135% N/A $23 771 N/A $11.0 $3121 193% $9.11 $31 551 246 Slo.0 $29,7 198% SIERRA 3.522 $8.50 $23.2 174% $1200 $23.7 98% $1000 $32,21 222% S9.00 $31.55 251% STO(I $28.79 311, SISKIYOU 44,32 $Q91 $23.2 135% N/ $23 77 N/ $11,0 $26,26 131)% $9.11 $31.55 2461/, $10,0 $19 79 199% SOLANO 405,64 $28A0 $29.75 5% $29.00 $29.75 3% $18.50 $30.65 6ti% $31.30 $39,8 24% $29.90 $33.9 131/ SONOMA 468,583 $28,4 $2275 5% $29.0 $29.75 3% $20.95 $32.13 53% $31.30 S38.86 24% $2738 $36.05 32% STANISLAUS 469,961 $212 $23.2 101/ $15.0 $23 77 581/, $23.26 $29 17 25% N/ $28.I8 N/ $I I.S $29.2' 22031/, SUTTER 81,561 $22,1 $23.2 5% $23.52 $23,7 I% $26.1 $3221 23% $28.9 $31.95 9% $31.5 $28.7 EFiAMA 56,911 $8.5 $23.2 172% N/ $23.7 N/ $10.12 $32,21 218% N/A $31.55 N/A $26 $29.2RINITY 1305 $8.5 $23.2 172% N/ $23,7 N/. $10.1 $3221 218% N/ $22.34 N/A $0,6 $28.7 ULARE 378,477 $21.24 $13,3 -37% S15.0C $23.7 581/, $17,80 $27.10 52% N/. $28.52 N/. $11,5 $197'. 150% UOLUMNE 55,859 $22.17 $23.2 5% $23.52 $23 77 11/1 S19.00 $29.1 54% $2R.18 $2918 011/ $31.59 $29.2' -7% VENTURA 778,423 $IR,7 $29.0 54% $19.00 $29,0 531/, $31,6q $31.6 0% $2728 $27.29 0% $24.31 $29.81 23% OLo 176,28 $22.1 $23,2 5% $23,52 $23,7 1% $26,11 $32.21 23% $289 $31.55 9"' $21.43 $30.9 45% t)BA 61,763 $22.17 $23.27 5% $23.52 $23J 1% $26,1C $32 211 23% $289< S31.55 9% $31.5 $28.7 -9% ina de Average: 58 counties 52'% 46 muatles 38% 58 counties 89% 42 eountie5 64% 56 counties 851/4 Po ulation Wei hied Ay 100.0 U of Pop.) 36% 96.6%of Pap.)- 36% 100.0%of Po 56'% 89.71%of Po 1911/4 99.9%or Po 39%, ,Pourers: .see Append;-,1 Prepared.by C(CG 67 6/9/2004 Appendix G: Table 2: Comparison of Davis-Bacon Commercial Prevailing Wage Rates with Davis-Bacon Residential Prevailing Wage Rates (Includes.Onl Recent Davis-Bacon Rates, or Those Updated Since June 1, 1999) Carpenter Drywall fitmaller I Electrician I HVAC/Sheet Metal Worker - Plumber Davis-Bacon Davis-Bacon Pct by which Davis-Bacon Davis-Bacon Pct by which Davis-Bacon Davis-Bacon Pet by which Davis-Bacon Davis-Bacon Pct by which Daces-Bacon Davis-Bacon Pct by which Residential Cmnmerval Commercial Residential Cmntnercial Commercial Residential Cmnmermal ('omme-al Residential Commercial Commercial Residential Commercial Commercial County Population I PW Rate PW Rate Rate is Greater PW Rate PW Rate Rate is Create PW Rate PW Rate Rate is Greater PW Rate PU'Rate Rate is Greater PW Rate PW Rate Rate is Greater ALAMEDA 1,484,698 $284 $29.75 51/1 $29.0 $29.75 3% $31.94 $37.0 16% $30.83 $34.5( I2°/ $35.51 $35.5I 0% ALPINE 1,21 (Jul-RO)N/A $23.2 N/ N/A $23 77 N/A (Jul-RO)N/A $32.21 N/A N/A $27 17 N/A (.hJ-30)NIA $21)29 Ni AMADOR 36 OA (lul-RS)N/ (Jul-RS)N/ N/A (.hd-BS)N/ (Jul-R S)N/A N/A (Jul-RS)N/A (.htl-85)N/A N/ (lu1-85)N/A (Jul-RS)N/A N/A (lan-97)N// (.lu1-85)N/A N/. BUTTE 207,31 .Ian-88)N/A $23,2 N/. (Jan-89 N/A $23.7 - N/ (.Ian-88)N/A $32,21 N/A (Jan-88)N/A $3155 N/. (,Ian-88)N/ $28 7q N/ CALAVERAS 41,82 $22.1 $23 27 5% $2352 $23 771 I% $28.1 $28,1 0% $20,53 $27 37 33/ $31S $29.2 -71/, COLUSA 79,341 (tan-82)N/ $23 27 N/. (lan-82)N/ $23.7 N/ Jan-82)N/ $32.21 N/ N/A $31.55 N/A N/A $28.7 - N/ CONTRA COSTA - 990,870 $28.4 $29.75 5% $29 0 $2995 3°l $35.01 $37.51 7% $30 R3 $34 5 12% $2Z41 $35.21 28 DEL NORTE 27,69 (Jun-86)N/ Hun-86 N/ N/ (lan-86)N/A Jun-86)N/A N/ Jun-86)N/A Jun-86)N/ N/A .tun-86)N/A(Jun-86)N/A N/A (Jun-R6)N/A(Jun-86)N/A N/ ELDORADO 1 63 64 $22.1 $23.2 5% $23.52 $23,7 1% $26.16 $32-21 23% $28.99 $3 1.5 5 9% $19.0 $2.5 45 34/, FRESNO 827,31 $21.2 $23,2 10% $15,0 $23,7 58% (lan-98)N/ $27.1 N/, N/A $28,52 W $IL5 $28.71 150% GLENN 26,74 (lan-82)N/ $23.2 N/ (Jan-82)N/ $23.7 N/ (Jan-82)N/r $32.21 N/A N/A .$31.55 N/A N/A $29.2 N/, HUMBOLDT 127,305 (lan-86)N/A (.Ian-86)N/ N/ (lan-86)N/. (lan-86)N/ N/A (Jun-R6)N/A (Jun-8( NI N/A N/A lun-R6)N/A N/A (Jun-86)NA Clan-R6 N/ N/ IMPERIAL 150,21 $19.7 $29.0 54% $190 $290 53% $1941 $3021 56% 125.41 $25.9 2% $2431 $29.81 23"l [NYC) 18.24^ Sep-82)N/ $28.43 N/ (Sep-82)N/A $29 00 N/A(Sq-82)N/A $35.25 N/A N/A $28 00 N/A (Se,-82)N/A $27 6 N/N/A KERN 699.975 $2124 $29.43 34% $I S.O $29.0 93% $2934 $29.3 0",' N/A $270 N// $25.34 $253 0% ICINGS 133,553(Nov-82)N/A $232 N/ N/ $23,7 N/. Nov-82)N/A $27,1( N/A(Nov-82)N/A $28 52 N/ Nov-82)N/A $28] N/, LAKE 60,51` Ciao.79)NI (Jun-86)N/A N/A Clan-78)N/v Jun-86)N/A N/ Jan-78)N/A Jun-86)N/. N/A (Jan-78)N/A pun-R6)N/A N/A (.Ian-78)N/, (Jun-86)N/A LASSEN 34,23 A r-8(, N/A $23 27 N/ N/A $23.7 N/ (A r-86)N/A $32.2I N/A(A tr-86)A!/A $31 55 N/. (A r-86)N/A $29.2' N/ LOSANGELES _ 9,817,41- $I9.7 $29.0 541/, $19.0 $2900 5 3%, $16.15 $29 70 84% $26 SR $29,40 II°/ $24l1 $29.81 23% MADERA 130773 $21 2 $23.2 10% $15.0 $23 771 58% (Jun-99)N/ $27.1 N/A WA $28.52 N/A $11.5 $28 79 150% MARIN 248,49 $28 4 $29.75 5% $240 $29.7$ 3% $20.95 $32.13 - 53% $31 3 $38 86 24°/ $27 38 $36 05 31„% MARIPOSA 17,08 $22.1 $23.2 5% $235 $23.7 'I% $19'00 $29 17 541/, $28.I9 $28.18 0% $31.5 $29.2 -7/MENDOCINO 87,552 (Jan-78)N/A (Jtot-86)N/; N/ (4-78)N/A Jun-86)N/A N/ Jan-78)N/A (.Jun-86)N/ N/A (Jan-78)N/A(hm-86)N/A N/A .Ian-78)N/A(Jun-86)N/A N/A - MERCED - 219,55 $21.2 $23.2 10% $15-0( .$23.7 58% $23.26 $29.1 25/, N,'A $28 Is N/ $11.5t $29.2 1559i MODOC 9,353(A)r-86)N/A $23 2 N/ N/ $23.7 N/A(A r-86 N/A $26.20 N/A(A ir.86)N/A $31.55 N/A(A x-R6)N/A $28,7 NG MONO 13,24 Se-82)N/A $28.4.3 N/A Se-82)N/A $29.00 N/A Se,-82)N/.4 $35 25 N/A N/A $28.9 N/A (Se/-82)N/A $27.6 N/r MONTEREY 409,608 $23.52 $24.62 5% N/ $24.62 N/A $17.42 $32.(11 R4% $31.41 $31,4I $3159 $31.8 I't' APA 128,132 $2R 4 $2975 51/1 $1900 $29.75 3% $185C S30.65 66% $11.30 $3R.R( 24" $299 $33.9( 13i, NEVADA 9498 $221 $23-2 5"/, $23.52 $23.7 1% S2616 $3221 23"/ $28.9 $31'55 "1 $'19.04 $25.45 34"5 Prepared by CICG 68 6/9/2004 Table 2 Continued Car ente rvwall Installer Electrician 11VAC/Sheet Metal Wank- Plumber Davis-Bacon Davis-Bacon Po by which Davis-Bacon Davis-Bacon Pet by which Davis-Bacon Davis-Bacon Pet by which Davla-Bacon Davis-Bacon Pet b)which Dads-Bacon Davis-Bacon Pct by which Residential Commercial Commercial Residential Commercial Commercial Residential (-on nnercial Cononerciol Residential Commercial Commercial Rasidential Comawneml Commercial Coun Population PW Rate PW Rate Rate is Greater PW Rate PW Rate Rate is Greater PW Rate PW Rate Rate is Grcater PW Rate PW Rate Rate is Gir"nei PW Ratc PW Rate Rate i.c Greater ORANGE 2,934489 $18.7 $29.00 541, $1200 $29.00 531/, $200( .R31.85 591/1 $26.58 $2S V 9% $2431 $29.81 23% PLACER 265,683 $22.1 $23.2 5% $23.52 $23 77 I% $26.16 $3221 23% $28A $315$ 91i $19 W $25.45 34"i PLUMAS 20196 (A r-86(N/A $23 27, N/A N/A $23 77 N/A(A t,-86)N/A $32 21 N/A N4\ $31.55 N/A A r-8n)N/A $28.79 N/ RIVERSIDE 1,645,31 Q $18 7n $29.00 S4% $19.0 $290 53% .$170 $29,23 72"/ $2658 $29.41 II% $2431 $2291 23% SACRAMENTO -1,280,92 $22-I $23 27 9".' $23.52 $23.7 I% $26 16 R3221 23"-' $28.99 $31.55 9M .$21.43 ,$30 97 4S"% SAN BENITO 55.618 $2352 $2462 S% N/A $246 WA $17421 $32.01 94% $31 411 $3141 011" $25.R. $4551 76% SAN BERN.ARDINO 1,788,471 $I9.7 $2900 541/, $19.00 $2,)nc, 53% (Jun-99)N/ $29.25 N/A $26.58 $2941 II",' $2431 $314C 20% SAN DIEGO - 2,908,505 $I8.32 $2290 29% $140t .$I R.55 -2% $23.61 $30.21 281//, $17.93 $26 9(j 51"r; $2431 $3094 27% SAN FRANCISCO 789.062 $29 4 $2275 5^/ S29 00 $29]5 3% $36.44 $45.55 25"/, $33 9 $37.0 9"1' A27.iR $41 00 50"-i SAN.JOAQUIN 596,90 $2124 $23.2 (0% $I500 $237 58% $28.1 $28.1 0% N/A $273 N/A $11.5 $29.2 155°� SAN LUIS OBISPO 253,043 $187 54$2900 % $1900 $29.0 53% $176 �$2725 55" $2728 $2728 n",' $2431 $2281 SAN MATEO 714,41 $28.4 $29.75 5"� $29 00 $29.75 3% $42.3 $42.3 0'4' $33.14 $36 83 I I% $40.65 $40465 SANTA BARBAR:\ _ 406,171 $1 RJ $29 00 $10.00 $29()fl 53% .819.4' $30.83 53".� $2728 $27 28 0"., $24 i l $30 49 SANTA CLARA 1,716 7c5 $29 40 $29.75 $29,00 $29.75 3".' $23.49 $42.5 RI`S'h $3412 $17 65 IOL $25.8 $4551 76"„ SANTA CRUZ 258.398 $23 52 $2462 511, NIA $24.62 N/A $17.42 $32.01 84"/, $32 OS $32,05 n^,� $3 L5e $31.R' 19f SHASTA 169,27 (Mar-R(>)N/ $23 27 N/ NrA $23.7 N/ (Mai-RG)N/A $32.21 VA(Mar-86)NIA $31.55 NIA(Mar-86)N/A $28.79 N/A SIERRA 3,52' (Jan-82)NIA $23 27 N/r (Jan-82 N/A $23 77 N/A (,Inn-82)N/A $32.21 N/A fan-82t N/A $3I.55 N/. Ian-82 N/A $28,7 NIA SISKIYOU 44,32 (Mar-86)N/ $23 27 N/ N/A $23.7 N/A Mar-86)N/A $26 2 N/A(Mar-86)N/A $31.$$ N/. (Mar-96)N// $29.7 N/A SOLANO 405,642 $2R A $2995 5% $29.0 $29.75 3% $18.5 $30.65 66/� $31.3 $38 RG 24% $21)9 $33 00 13 SONOMA 468.583 $29 4 $29.75 5% $29 0 $29 75 3% $20.95 $32 1.3 S;"/n $.31 30 $38_8 24% $27 38 $36.05 321.= STANISLAUS 469,96 $2124 $23.27 10% $15.0 $23 771 58% $23.2 $29 17 25% N/ $28.19 N/A $II 5 $292 155% St1TTER 81,561 $22.1 $23.2 5% $2352 $23 77 I% $26.111 $3221 23% $28,9 $3I.55 91/1 $315 $28.7 -9! EHAMA 56,9111(A r-86)N/A $23.2 r N/ N/A $23,7 N/A(A r-86)N/A S32.21 N/A N/A $31.55 N/A(A r-86)N/ $29.29 N/ TRINITY 13,05 (A r-86)N/A $23 27 N/ N/A $23.7 N/A(A 1-86 N/A $32,21 N/A N/A $2234 N/ (A r-86)N/A $28,79 N/ ULARE 378,47 $21.24 (Oct-84)N/A N/ $15.0( $23 77 59% (Jun-98)N/A $27 K N/A N/A $28.52 - N/A $11 5 $28 79 150% UOL,UMNE 55,95 $22.1 $23 27 S'Y $23 521 23.7 "1% $19.,0 $29 17 54% $28.18 $29,19 011"o $31 5 $29.2 .7"/ VENTURA 778,423 $18:7 $2900 54% $120 $29.0 53% $31,6 $31 60 0% $27.29 $2728 0% $24.3I $29.91 23"/� - YOLO 176,28 $22.1 $2327 5% $23.52 $23 77 I% $26.16 $3221 23% $28.9 $3 1 55 9%, $2 L43 $30.9 45 YUBA 61,763 $221 $2327 5% $2352 $23 77 I% $261( $32 211 23% $28.9 $31.55 9% $31.5 $287 -91/1 Simple Average: 37 counties IS% 35 it-unties 26% 34 rountiies 40% (31 counties) I 1%. (39 counties) 42 Population Wei hted Avg: (95.7%of P.p.) 34% (94.8%of Pop.) 35% 81.9%of Pot. 53% (97.4%of Po 14% 96.8%of Pa 36 Sbrnws: see Appendix D. Also,the,filtered 1)ari,c-Racan data ed Is dmied with an"NA"and the dale on❑Inch the data series mere last updated Prepared by CICG 69 6/9/2004 Appendix H: Regression Analysis Methods In order to isolate the impact of the prevailing wage requirement on project cost, we needed to control for all factors that may influence costs for residential construction projects. To do this we used a series of regression models and controlled for such relevant factors as regional variation in construction costs, economies of scale associated with building larger projects, and specific characteristics of the buildings themselves. The approach we followed closely resembled the methodology of the Dunn, et.al. study. Our analysis,however, is based on a substantially larger sample of projects and incorporates several refinements to the earlier methodology. Data Sources for Regression Analysis Our dataset consists of newly constructed multi-family housing projects that received federal Low-Income Housing Tax Credits (LIHTC) from the California Tax Credit Allocation Committee(TCAC).32 Information was collected on projects with applications filed after January 1, 1997, and which were placed in service before December 31, 2003. Only rental housing projects are eligible to compete for the limited number of federal and state low-income housing tax credits allocated by TCAC. All projects must use one of two federal set-aside requirements; either 40 percent of units reserved for households earning 60 percent or less of the area median income or 20 percent of units reserved for households earning 50 percent or less of the area median income. Often projects reserve a greater number of units for low-income tenants, as it makes the project 32 Many projects also received state tax credits. 70 more competitive in obtaining tax credits (only the affordable housing units are eligible for tax credits). Low-income units must remain so for fifteen years under federal law. From the TCAC database covering the application years of 1997-2003, we obtained a list of 375 new construction projects that had been placed in service as of December 31, 2003. Data were collected for 365 projects; the remaining projects were either missing relevant portions of their application file,were rehabilitation projects mislabeled as new construction projects, or were in use by TCAC staff and thus unavailable. The final dataset includes information from the TCAC electronic database, from TCAC paper files, and from telephone interviews. The telephone interviews were used to determine whether or not prevailing wages had been paid during project construction; cost measures and other variables were collected from the electronic and paper files. A construction cost index from the Engineering News Record(sponsored by McGraw-Hill Construction)was used to deflate the cost measures to 1997 levels. Two cost variables were used in our analysis. "Construction Cost" includes site preparation, materials and labor, overhead and profits for the contractor, and general requirements. "Total Project Cost" is a broader cost measure,including all costs related to the development and construction of the residential portion of a project, including site preparation and land, architect and engineering costs, financing, and other costs, as well as construction costs. We employed two methods to test for the impact of the prevailing wage requirements on project costs. In the first,we included a simple dummy variable indicating whether or not prevailing wages were paid. Analysis of this variable indicates the overall cost increase resulting from prevailing wage requirements. 71 In the second,we constructed a new variable to estimate the percent difference between the market wage rates and the prevailing wage rates,based on our wage differential analysis. We took the average difference between market and prevailing wages(collected from the EDD and the DIR)for the five construction trades analyzed, and matched those average wage differentials to projects by county. For prevailing wage projects we assigned this variable to the value of the wage differential for that county, and for non prevailing wage projects we assigned this variable to zero. Thus, this variable was used to approximate the percent by which the wages paid on a particular project were above the market wage rate in that area,assuming that prevailing wage projects paid the higher prevailing wage rates and non prevailing wage projects paid the local market rates for construction labor. Analysis of this variable allows us to estimate the likely impact on total project costs stemming from a specified increase in wage rates. This measure was then used to estimate likely region-by-region cost increases stemming from implementation of prevailing wage requirements. We collected data on several variables to help explain variations in construction costs and total project costs. These measures included characteristics of the projects such as the inclusion of elevators,below-structure parking or special facilities,the type of structure, location,number of units, density, and affordability. We grouped projects into one of nine geographical areas to ascertain regional cost differentials. Our study included dummy variables for the years 1997 to 2002 in order to account for year-specific factors that may influence construction or project costs. A complete list of variables is included in Table 1. 72 Table 1: Variable Descriptions and Summary Statistics Variable Name Description Mean StDev PW_Project One if prevailing wages were paid as a result of federal, 0.233 0.423 state or local requirements,else 0 TotUnits Number of units in project 85.566 58.149 UnitsPerAcre Number of units per acre 34.328 41.487 SgFeet Total interior square footage 80,003 55,103 ParkingBelow One if project contains parking beneath the structure,else 0 0.207 0.406 Bldg3Stories One if project contains buildings with three or more stories. 0.141 0.349 else 0 Elevator One if project contains at least one elevator,else 0 0.356 0.480 ThreeBedrooms One if 50 percent or more units have 3 or more bedrooms, 0.403 0.491 else 0 SpecialNeeds One if project contains special needs facilities,else 0 0.039 0.193 Island One if project is on an island,else 0 0.003 0.052 Bond One if project is eligible for tax-exempt bond finance 0.408 0.492 Affordability Fraction of units in project that meet affordability guidelines 0.928 0.156 EnvMitigation One if project required substantial environmental 0.051 0.221 mitigation,else 0 Infill One if development is an inner city infill site,else 0 0.177 0.382 Year YR1997 One if project applied for credits in 1997,else 0 0.208 0.407 YR1998 One if project applied for credits in 1998,else 0 0.197 0.398 YR1999 One if project applied for credits in 1999,else 0 0.208 0.407 YR2000 One if project applied for credits in 2000,else 0 0.200 0.401 YR2001 One if project applied for credits in 2001,else 0 0.134 0.341 YR2002 One if project applied for credits in 2002,else 0 0.038 0.192 YR2003 One if project applied for credits in 2003,else 0 0.014 0.116 Type of Developer DevNonProfit One if developer is a joint venture,else 0 0.447 0.498 DevProfit One if developer is a for-profit organization,else 0 0.156 0.363 DevJV One if developer is a non-profit organization,else 0 0.394 0.489 Targeting Nontargeted One if units are not targeted to a specific population,else 0 0.088 0.283 SRO One if units are single room occupancy,else 0 0.022 0.147 Senior One if units are targeted to seniors,else 0 0.263 0.441 Needs One if units are targeted to special needs populations,else 0 0.063 0.243 Family One if units are targeted to large families,else 0 0.559 0.497 Type of Building Townhouse One if project is a townhouse,else 0 0.025 0.156 Coop One if project is a cooperative,else 0 0.003 0.053 TwoStories One if project has two or more stories,else 0 0.564 0.497 SingleFam One if project is single family detached,else 0 0.000 0.000 GardenApt One if project is garden apartments,else 0 0.406 0.492 Geographic Regions Northern-California One if project is in one of the following counties: Del 0.011 0.104 Norte,Humboldt,Lake,Lassen,Mendocino,Modoc, Nevada,Plumas, Sierra,Siskiyou,Trinity;else 0. 73 Variable Name Description Mean StDev Northern—Sacramento Valley One if project is in one of the following counties: Butte, 0.014 0.116 Colusa,Glenn,Shasta,Tehama;else 0. Central—Sierra One if project is in one of the following counties: Alpine, 0.005 0.074 Amador,Calaveras,Inyo,Mariposa,Mono,Tuolumne; else 0. Greater—Sacramento One if project is in one of the following counties: El 0.096 0.295 Dorado,Placer,Sacramento,Sutter,Yolo,Yuba;else 0. Bay Area One if project is in one of the following counties: Alameda, 0.268 0.444 Contra Costa,Marin,Napa,San Francisco, San Mateo, Santa Clara,Santa Cruz,Solano,Sonoma;otherwise 0. Central—Coast One if project is in one of the following counties: 0.049 0.217 Monterey,San Benito,San Luis Obispo,Santa Barbara; otherwise 0. San—Joaquin Valley One if project is in one of the following counties: Fresno, 0.112 0.316 Kern,Kings,Madera,Merced,San Joaquin,Stanislaus, Tulare:otherwise 0. Southern—California One if project is in one of the following counties: Los 0.337 0.473 Angeles,Orange,Riverside,San Bernardino,Ventura; otherwise 0. South ern—Border—Region One if project is in one of the following counties: Imperial, 0.107 0.309 San Diego;otherwise 0. 74 Appendix I: Regression Analysis and Results Although we followed their basic approach,we did make several modifications to the Dunn et.al. methodology. First we used a substantially larger dataset, including 365 projects. We also made several adjustments to account for inflation and time-specific factors that may influence construction or project costs. Specifically, we adjusted the cost variables to account for inflation in construction costs by using a construction cost index published by McGraw Hill. We also included dummy variables for the year in which the application was submitted to the TCAC in order to account for year-specific factors that may influence construction costs. These factors could include surpluses or shortages in raw materials, regulatory or statutory changes, or one-time events such as elections or unusual weather conditions. Finally, we built and tested a series of models using the difference between market and prevailing wages as an independent variable(i.e., a factor that influences construction or project costs.) Table 1 shows the results of the four main statistical models we used in our analysis. For the results given, the dependent variables were the logarithm of either residential construction cost or total project cost,in constant 1997 dollars. Two sets of regression equations were used: one with the simple prevailing wage dummy variable (PW_Project) and one with the average percent wage differential (PctDiff Avg) described above. 75 Table 1: Regression Results Using Prevailing Wage Dummy Variable Construction Total Project Construction Total Project Cost Model Cost Model Cost Model Cost Model w/PW Dummy W/PW Dummy w/Pet Wage Diff w/Pet Wage Diff Variable from Regression Coeff (T-Stat) Coeff (T-Stat) Coeff (T-Stat) Coeff (T-Stat) Rsquared 0.933 0.913 0.933 0.913 AdjRSquared 0.926 0.904 0.926 0.904 Intercept 9.547 26.271 10.186 24.600 9.549 26.185 10.188 24.546 PW-Project 0.118 4.095 0.110 3.346 PctDiff_Avg 0.254 3.809 0.237 3.115 log units 0.728 16.164 0.692 13.487 0.726 16.068 0.690 13.422 log_UnitsPerAcre (0.051) (2304) (0.045) (1.798) (0.049) (2.223) (0.044) (1.734) log_SgFeet 0.229 5.340 0.216 4.425 0.231 5.355 0.218 4.441 ParkingBelow 0.146 3.753 0.089 2.004 0.147 3.750 0.089 2.008 Bldg3Stories 0.074 1.778 (0.022) (0.471) 0.075 1.794 (0.021) (0.451) Elevator 0.033 1.084 0.112 3.208 0.033 1.065 0.112 3.185 ThreeBedrooms 0.031 1.047 (0.033) (0.969) 0.030 0.996 (0.034) (1.006) SpecialNeeds 0.115 1.747 0.052 0.698 0.116 1.757 0.053 0.709 Island 0.770 4.166 0.553 2.624 0.771 4.154 0.553 2.619 Bond (0.170) (6.745) (0.110) (3.806) (0.170) (6.690) (0,109) (3.771) EnvMitigation 0.112 2.358 0.089 1.637 0.111 2.328 0.088 1.615 Infill 0.113 3.291 0.047 1.199 0.111 3.213 0.045 1.144 Developer Type(excluded. DevProfit) DevNonProfit 0.121 3.725 0.158 4.283 0.123 3.772 0.160 4.323 DevJV 0.037 1.124 0.071 1.914 0.036 1.115 0.071 1905 Targeting(excluded. SRO) Nontargeted 0.319 3.857 0.202 2.138 0.322 3.874 0.204 2.158 Senior 0.136 1.934 0.010 0.131 0.135 1.918 0.010 0.123 Needs 0.188 2.103 0.141 1.389 0.188 2.101 0.142 1.390 Family 0.308 3.967 0.254 2.873 0.310 3.973 0.256 2.882 Year Dummies(excluded: Yr2D03) Yr1997 (0.221) (1.196) (0.130) (0.620) (0.223) (1.204) (0.133) (0.629) Yr1998 (0.152) (0.824) (0.033) (0.157) (0.153) (0.828) (0.034) (0.162) Yr1999 (0.149) (0.810) (0.079) (0.377) (0.151) (0.814) (0.080) (0381) Yr2000 (0.093) (0.503) 0.026 0.126 (0.095) (0.516) 0.024 0.114 Yr2001 (0.017) (0.093) 0.076 0.362 (0.018) (0.I00) 0.074 0,355 Yr2002 (0.018) (0.093) 0.111 0.499 (0.022) (0.113) 0.107 0.481 Regions(excluded: Northern_California) Northern_Sacramento Valley (0.025) (0.197) 0.148 1.027 (0.041) (0.323) 0.133 0.923 Central Sierra 0.110 0.681 0.112 0.607 0.094 0.581 0.097 0.526 Greater Sacramento 0.111 1.098 0.194 1.683 0.096 0.947 0.180 1.561 Bay Area 0.336 3.519 0.484 4.442 0.326 3.398 0.474 4.342 Central Coast 0.073 0.701 0.241 2.038 0.056 0.542 0.226 1.910 San_Joaquin_Valley (0.045) (0.451) (0.005) (0.045) (0.060) (0.597) (0.019) (0.166) Southern California 0.191 1.959 0.276 2.478, 0.174 1.780 0.260 2.334 Southern Border Region 0.118 1.201 0.264 2.350 0.104 1.050 0.250 2.229 As shown in Table 1, our models include an intercept term, 19 project descriptors, six year variables, and eight geographical identifiers. We found that project costs are 76 affected by project size, developer type, and project type. Projects constructed by nonprofit developers are more expensive, as are projects in the Bay Area. Features such as tenant parking located below the project structure and elevators also contribute to higher costs. All these findings are consistent with our expectations, and with the Dunn et.al. results. Our analysis suggests that even when other factors are taken into account, projects paying prevailing wages to construction workers are more expensive to develop. Our models suggest that projects paying prevailing wages are likely to incur 11.0 percent higher total residential project costs, and 11.8 percent higher residential construction costs. The average wage differential variable resulted in coefficients between 0.237 and 0.254. When the coefficients are multiplied by the average wage differentials (prevailing wages are on average approximately 45 percent higher than market wages), the effect of prevailing wages on project costs is again about 11 percent, reinforcing the robustness of our findings. 77 Industrial & Labor Relations Review Volume 59,Issue 1 2005 Article 8 The Effects of Prevailing Wage Requirements on the Cost of Low-Income Housing Sarah Dunn* John M. Quigley l Larry A. Rosenthal, "Berkeley Program on Housing and Urban Policy, tUniversity of California,Berkeley, 'University of California,Berkeley, Copyright ©2005 by the authors. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, elec- tronic, mechanical, photocopying, recording, or otherwise, without the prior written permis- sion of the publisher, bepress, which has been given certain exclusive rights by the author. In- dustrial & Labor Relations Review is produced by The Berkeley Electronic Press (bepress). http://digitalcommons.ilr.comell.edu/ilrreview The Effects of Prevailing wage Requirements on the Cost of Low-Income Mousing* Sarah Dunn, John M. Quigley, and Larry A. Rosenthal Abstract Recent California legislation extends the application of prevailing wage regulations to con- struction workers.building subsidized low-income residential projects. Econometric evidence based on micro data covering 205 residential projects subsidized by the California Low Income Housing Tax Credit since 1996 and completed by mid-2002 demonstrates that construction costs increased substantially under prevailing wage requirements. Estimates of additional construction costs in the authors' most extensive models range from 9%to 37%. The analysis controls for vari- ations in cost by geographical location and for differences in project characteristics,financing,and developer attributes. The authors estimate the effect of uniform imposition of these regulations on the number of new dwellings for low-income households produced under the tax credit program in California. Under reasonable assumptions, the mid-range estimate of the prospective decrease exceeds 3,100 units per year. KEYWORDS:prevailing wages,low-income housing "This research is supported by a grant from the U.S.Department of Housing and Urban Develop- ment and by the Berkeley Program on Housing and Urban Policy.The authors are grateful for the comments of Andrew Blauvelt,Shawn Blosser, Scott Littlehale,Matt Newman,Jeanne Peterson, Scott Smith,and Fran Wagstaff. THE EFFECTS OF PREP%ikILING WAGE REQUIREMENTS O\1 THE COST OF LOAV_INCOME IIOUSING SARAH DUNV.JOHN M. QUIGLEY, and LARRYA. ROSENTHAL* Recent California legislation extends the application of prevailing wage re-ulations to construction workers bnildin< subsidized tote-income residential projects. Econometric evidence based on micro data covering 205 residential projects subsidized by the California Low Income Idottsing Tax Credit since 1996 and completed by mid-2002 demonstrates that construction costs increased substantially under prevailing wage requirements. Estimates of' additional construction costs in the authors`most extensive models range from 9 () to 37`,%o. The analysis controls for variations in cost by geographical location and for differences in project characteristics, financing, and developer attributes. The authors estimate the effect of uniform imposition of these regulations on the number of new dwellings for low-income households produced under the tax credit program in California. Under reasonable assumptions, the mid-range estimate of the prospective decrease exceeds 3,100 units per year. it October 2001,following heated polid- amended section 1 720 of the California cal debate, the California legislature Labor Code,expanding the scope of'`pub- voted to extend the application of the state's lic funds"that trigger prevailing wage obli- "prevailing wage" laws to many construe- gations when used to finance new construc- tion projects not previously covered, in- tion. eluding housing subsidized with public The new law brings to the forefront of' funds and even some private construction. the policy debate concerns about the costs The passage of Senate Bill 975 (SB 975) and benefits of prevailing wage laws. spe- cifically in the context of subsidized lious- ing for low-income households. Since pre- vailing wage rates are almost invariably higher than rnarlket wages,the new law may Sarah Dunn is Research Associate at the Berkelev significantly increase construction costs in Prograrn on Housing and Urban Policy. John \1 affected projects,perhaps to the point that Quiglev is 1. Donald Terner Distinguished Professor they will no longer be financially feasible. and Professor ofEconornics.and Larry A.Rosenthal -although SB 975 and subsequent enact- is Executive Director of the Berkeley Program on (lousing and Urban Policy and Lecturer at the ments exempted some subsidized projects— Goldman School of Public Policy,all at the University of California,Berkeley.This research is supported by a grant from the U.S. Department of Housing and Urban Development and by the Berkeley Program on I lousing and Urban Policy. The authors are grateful for the comments of Andrew Blauvelt,Shawn Biosser. 'the dataset on which this paper is based is avail- Scott Littlehale.Matt Newman,jeanne Peterson.Scott able for download at http://urban polic�-.berkele%. Smith,and Fran Wagstaff'. edu,publist.hnn. Industrial and Labor Relations Review,Vol.59.No_ I (October 2005). U by Cornell University. 0019-5939/00;'5901 $01.00 141 142 INDUSTRIAL AND LABOR RELATIONS REVIEXV such as those already underwae at the time rates is left to the discretion of the director of the new law's passage, as well as certain of the DIR. California's determination of self-help projects and transitional housing "prevailing wages"is similar to the federal for the homeless—prevailing wage require- standard, in that it effectively emplox s the rnents have come to affect more and more modal leage rate. This usualh results in the residential development in California, in- selection of a negotiated wage rate (under eluding mane housing projects targeted a union collective bargaining agreement), toward low-and moderate-income families. since free market wages are unlikeh' to be While SB 975 itself applies only in Cali- identical to the penny. forma,the impact of prevailing wage police Local prerogative on construction wage is of national importance. Several studies regulation varies Within the state. By 1995, have estimated the impact of theprovi.sions uvo California localities had won judicial of long-standing federal prevailing wage approval of ordinances exempting certain laces, the Davis-Bacon and Related Acts,oft projects from p-evailingtv,age requirements. the cost of government contracts,but there A handful of other cities imposed preyail- is little hard evidence on the impact of ing wage obligations on some indusn-ial prevailing wage policy on housing or resi- construction projects v\,holly= outside the den tial construction costs,or on subsidized public sphere (Thieblot 1995). projects in particular. NN'liile some support- Since passage of the Davis-Bacon Act, ers argue that preyailing wage laws increase construction of low-income housing spon- the efficiency or stability of construction sored directly by the C.S. Department of labor markets, these claims retrain unsub- Housing and Urban Development (MUD), stantiated. Rather, redistribution of in- such as public housing and most Section 8 come appears to be the ultimate goal, and New Construction and Substantial Reba- the principal effect. (Allen 1983; Goldfarb bilitation proj ects,has necessitated payment and Mori-all 1981). of"prevailing wages.'" But there has been This paper presents new evidence on some ambiguity about coverage of'hoasing some of these issues. It estimates the effect projects subsidized indirectly through tax of prevailing wage requirements on the credits or federal grants to lower levels of cost of construction of state-subsidized low- government_ The 2001 California law re- income housing in California. The evi- soh•ed this anibiguitn. It extended this dence is based on micro data coveringnewly coverage to subsidized housing construe- constructed units funded in part by the Lion using federal, state, and local public Low-Income Housing Tax Credit Program funding sources such as the Community (I..II-ITC) from 1997 to 2002. Development Block Grant Program <tnd Other common sources of grants for subsi- Prevailing Wage drzed housing. Legislation in California Effects of Prevailing California's prevailing wage law was Wage Requirements passed in 1931, the same year as the Dayis- Bacon Act. A 1995 stud•of state prevailing Effects on Construction and Casts wage laws found it to be one of the most stringent in the nation (Thieblot 1995). A large literature has developed on the The California statute extends to areas be- efficiency and distributional effects of mfni- yond the scope of the federal law, such as demolition work, site and sewer construc- tion,and some janitorial and hauling work. The administration of the California stat- `The application of the Davis-Bacon.act to t1uID- Sponsored construction is subject to a cariet) of de- ute falls folder the jurisdiction of the state's tailed regulations_and HUD has prodded sage sur- Department of Industrial Relations (DIR), vevs to assist the U.S. Department of Labor in its and determination of the regulated wage determination of wage rate.. (see tluD 1981). PREVAILING WAGE REQUIREMENTS AND LOW-I\GOME HOUSING 143 mum wage laws generally (for a review, wage laws in nine states. They found that see Gard and Krueger 1995) and Davis- construction gages declined more in re- Bacon and state prevailing wage legisla- peal states than in non-repeal states, but tion in particular. Goldfarb and Morrall claimed that anvsavings to the government ( 1981) reviewed a nuutber of the early in construction costs was offset by losses in empirical studies of the costs of Davis- income tax revenue. Thieblot (1996) ques- Bacon, and concluded that the legisla- tioned these conclusions on methodologi- tion could hardly be attractive on effi- cal grounds. Bilginsov and Philips (2000) ciency grounds. The same authors used intra-provincial Variation in preyail- (Goldfarb and Mori-all 19718) examined ing wage laws to estimate the impact of the construction wage data to estimate the law on school construction costs,and found large cost savings achievable by using that the introduction of a prevailing wage mean wages (rather than modes) as the law in British Columbia increased construc- regulatory benchmark for defining pre- tion costs by at least 16%u in the,most restric- vailing wages. Metzger and Goldfarb tive model. The robustness of their results (1983) developed an economic model to was limited by a small sample (54 projects). evaluate claims that output quality im- Philips (2001) also examined the impact of proves under a prevailing wage regime, state prevailing wage laws on school con- and concluded that quality may easily struction using intrastate variation,finding decrease as a consequence of the in- a positive but not statistically significant creased costs imposed by regulation. effect of prevailing wage laws on construc- Estimates of increased project costs tin- tion costs. der Davis-Bacon vary considerably, most Other studies have exploited the inter- likely due to the difficulty in finding a state variation in prevailing wage laws. Pros control group unaffected by the Davis-Ba- (1996) used F\1` Dodge data on various con Act with which to compare construc- project types and found construction costs tion costs of Davis-Bacon projects. Two to be 18%, higher in prevailing wage states studies focused on a one-month suspen- than in states without prevailing large laws, sion of the Act in 1971,which forced con- but the unconventional manner in which tractors to rebid for projects in the pre- results were reported makes the level of award phase. "Thieblot (1975) found an statistical significance unclear. Prus increase of about .5% on prevailing wage (1999), Philips (1999), and Azari-Rad, projects. By accounting more fully forinsti- Philips, and Prus (2003, 2002) all used tutional factors and inflation, Gould and the interstate variation and FNN' Dodge Bittliugmayer(1980)estimated the increase data on school construction costs and to be between 4% and 7!c. Using contrac- found positive yet statistically insignifi- tor surveys to compile a sample of affected cant effects of prevailing wage laws on and unaffected projects in rural areas, construction costs. The results of these Fraundorf et al. (1984) concluded that the latter studies are questionable. as the Act increased costs by an average of more authors did not control for many impor- than 26%. tant project characteristics, and some More recent literature has addressed the unmeasured differences among state in- control group problem by exploiting the stitutions may affect the results. variation in state prevailing wage laws Kessler and Katz (2001) examined the among states and over time. A number of impact of repeal of state prevailing wage studies have used intrastate variation in laws on construction wages, comparing prevailing wage laws resulting from the in- variations across states and over time. troduction of a new law-,temporary suspen- The authors found a small (2-4%) but sion of an existing law,or the repeal of the statistically significant decrease in the state's prevailing wage law. Philips et al. average wages of construction workers in (1995) examined the effect on construc- a state after the repeal of its prevailing tion wages of the repeal of state prevailing wage law. 144 INDUSTRIAL AND LABOR RELATIONS REN171EXV Table 1. Rough Estimates of Increased Housing Costs Due to Prevailing Wage Re(lifirement,, For Selected California Cities. Labor,Sho,rf u/ 11c'v'1;1i)1g 11 age PIC,'irc!("04 Loctili(m ("On.,t]uction (';St 1)?l ......Ilial(�"c InnPrisr i 5i"! Major Cities L.osAngeles 13.5 45.9 21.3 Sacramento 44.9 A 1.7 18.7 San Diego .13.6 37.6 16.1 San Francisco 17.2 2,S.7 13.5 Ai vnagc Major Cities 44.8 39.2 17.5 Other Cities Bakersfield 42.G 60.0 25.6 Fresno 42.6 45.2 19.2 45.0 50A 2`2_5 Oxnard 4 3.9 50.1 22.0 Redding 4 3.2 56 5 24.4 San Bernardino 42.6 563 24_0 Average Other-Cities 53.0 23.0 Source: Newman and Blosser(2003'j. See text for assumptions and methods. Effects on Housing Markets Limes the wage premium-are presented in One paper prepared for the President's Table 1. Increases in project cost due to g prevailin wages average 26.8% for the ten Commission on Housing related housing 0 I cities considered. Increases range from construction costs to prevailing wage legis- 1,>.5qi, in Stockton to 25.6%, in Bakersfield. lation (HUD 1981), but that document is \JaJor cities have a lower average increase merely a compendium of assertions. There In project cost.(171.5%) than the six smaller is apparently no other direct evidence ()it the link be�ween prevailing wage regula- cities Included in the table (23' tions and housing costs. Of course, these rough estimates do not However. cost estimators used by house account for a number of influences prevail- ing wage legislation could have on overall builders,and rules of thumb used by lend- ers, may yield rough estimates of the link project cost. For example, affected devel- opers can substitute away from more ex- between prevailing wage requirements and pensive labor inputs by such means as using housing costs. For California. we can Use 1� existing information-on the labor share more prefabricated components, thus re- ducing the costs of on-site assembly. . The of residential construction costs, and on enforcement of wage regulations I 111101-it I the prenii urn of prevailing wages over mar- impose increased administrative cost (I I tie ket wages-to make scrine rough approxi- to more complex reporting requirements. niations. There are likely labor and materials econo- Rough estimates for selected California cities-the labor share in housing output' 211'h e.labor share of consti-tiction cost,available at tistics" suney arid state prevailing wage determina- littp:/,,'i%isA,c.biiilding-cost.iiet. is based on a wood- 20W tions ptiblished by the Department of-Industrial Rela- fraine,single-fainih.home of average quality arid size. tions as compiled in Newman arid Blossei I). Air Percent increases I in mean market wages were ob- average of wages from four constniction oc(upa- rained from the California Emplovinent Develop- tions-Carpenters, Electricians,Plumbers,and Di'y- tnent Department's"Occupational Employment Sta- wall histallers-was used to yield an overall laborrate. f PREVAILING WAGE REQUIREMENTS AND LOW-INCOXIE HOUSING 145 mies present in multi-unit projects forlo«wer- In accordance with program regulations, income families, compared to the single- only rental housing projects are eligible for family basis used in the published wage- credits. The allocation process is competi- share figures, Finally. increased N age ley- tive, so that projects that best fulfill hous- els ma\ attract more productive «orkers, ing needs and public policy objectives (as working fewer hours over the duration of determined by TCAC) have priority-. For an affected project. The subtle interac- newly atnstructed units to be eligible for tion,,of these effects are ignored in these tax credits, they must meet both rent and rough approxitnarions. We now turn to income requirements. The rents charged snore precise econometric models esti- may not exceed 30% of the "imputed in- matinu the cost effects based on the ac- come"for the unit.` At initial occupancy, tual cost of housing projects completed the income of a resident household may in California. not exceed W,'e or 60%ofthe area median income(AMI). Developers choose between Empirical Analysis a "20/50" or "40/60" minimum set aside, meaning that at least 20% (or 40%) of the Our analysis extends the literature on units must be "affordable" to families with the effects of prevailing wages by analyzing incomes at 50% (or 60%) of the median micro data on a large sample of individual income. Only '`affordable" units are eli construction projects, and by relying on gible for tax credits. To increase the attrae- obseryations from a single state. Our con- tiveness of projects in the competition for centration on subsidized housing projects credits,most applicants designate a greater also permits explicit consideration of the proportion than the minimum set aside as tradeoff bet- een the use of public resources "affordable," and many target occupants to benefit two different sets of deserving with incomes lower than the 5Vi, 60`io AMI households—lo��-income housing consum- threshold. Units receiving federal tax cred- ers.and workers within the residential con- its are required to remain "affordable"ac- -truction industry. cording to the above definition for 15 years.' We analze the structure of costs for A number of criteria are considered in newly constructed dwellings for California the allocation process. Federal guidelines Low-Income housing Tar Credit (1,11ITC) grant priority, to those projects that serve housing projects whose applications for the lowest-income tenants and that main- funding were filed after januar-y 1. 1997, twin affordability for the longer periods. and that were placed in service before Mav Other selection criteria include project lo- 1. 2002. All projects were selected to re- cation and the housing needs of that loca- ceive federal (and some state) tax credits by tion (including consideration of public the California Tax Credit Allocation Com- housing waiting lists and target popula- ntitfee (TCAC.-}, the administrator of the tions with special needs), project charac- federal 1,11ITC program in California.' teristics, and projects intended for even- tual tenant ownership. In California, the demand for credits usually exceeds their availability by about four to one;and elabo- The federal LIH'fC program,authorized by(:on- press in 1986 and administered nationally by the IEtternal Revenue Service,enables developers of quali- fying rental housing to raise project equith tln'ough ---------the sale of federal tar credits to investors. TCAC 'Income is imputed assuming an occupancy of 1.5 allocates additional state tax credits to those persons per bedroom,and the area median income projects that are selected to receive federal ci edits. for a family of that size. The rent charged must not TCAC may also authorize tax credits for rehabilita- exceed 30% of this imputed income. tion of low-income housing. Due to their hetero- 't:nitsbenefiting from California state tax credits geneio. housing rehabilitation projects are ex- are generally requited to maintain"affordability-for eluded from this analysis. 55 gears. 146 INDL;STRIAL. AND LABOR REL.NTIONS REVIEi1' Figure 1. Cost Distributions for Sample Two hundred and ninety-two New Con- Projects, 399'-2002, st action Projects were approved by TCAC from the application years 1997 through a.Residential Project Cost 2002 and completed before Mav 1, 2002. ao _,_ We compiled a dataset covering 265 of these project•.including exjtost cost data out each In oject.reflecting certification by external So- auditors upon completion ofconst-uctiorl.' _. I Other project characteristics were as- .;, sembled from the Committee's electronic M v database, i-rom paper files of TCAC. and 20 :. lam=>_ from telephone interviews. Two measures of project costs were corn- to piled based on expenditures reported ex ' ; osl in the final cost certification. The first and most incluske, Residenlial Project Cost, includes all costs associated with residen- 0- 2 6 10 14 IS 22 26 30 34 38 42 tial construction. These costs include land Millions of Dollars acquisition and development,construction (labor, materials, contractor profit, and overhead), survey and engineering costs, Ott b.Site and Structure Cost financing, legal fees, developer fees. and other expenses. Silt, and Structure Cosl in- rj dudes only site preparation and building- 30 a„1 cont n s �uci.io costs (that is. excluding coil- - tractor overhead and profit and general requirements). This measure of cost is 20 most closel)r linked to changes in labor and materials costs. As shown in Figure 1. the distribution of these cost measures is highly Skewed and roughly lognormal.' On a per r unit basis, Site and Structure Cost averages to- about 56% of Residential Project Cost. a ) a :__ We also compiled information on a nttrn- 1 3 9 7 9 11 13 15 17 19 21 23 ber of project characteristic variables: tar- Millions of Dollars geographic regions across the state. Preference fur credit allocal ion is also given to projects that promote certain public policies,such as smart growth,energy rate priorities and guidelines have been efficiency.and community revitalization efforts. established.` 'There were a total of 45d approved projects, of which 162 were classified as Acquisition or Rehabili- tation projects. Project files for 76 of 292 New Con- struction projects were not available at the time of 'For example, both state and federal law require data collection during the fall of2002. (This tvpicalh- that 10%of annnal credit be awarded to projects that meant that the files were in use la-,TCAC staffor other involve non-profit developers. In addition,the state state officials at the time data were collected.) Coin- law requires that at least 20% of the credits be used plete data could not be assembled for I I of the 216 for projects located in rural areas,and at least 2%be remaining projects. set aside for small projects(consisting of Zit or fewer 'In simple linear regressions,the intercept terms units). California also has guidelines to maintain are iusianificantl• different from zero, implying a geographic distribution of the tax credits,awarding a proportional relationship between Residential Project certain percentage of annual credits to each of 12 Cost and Site and Structure Coat_ PREVAILING WAGE REQUIREXIENTS AND LOW-INCOME HOUSENG, 1 I7 get populations(senior citizens and special Table 2 presents summary information needs residents,for example},affordability on the observed projects. levels, and the minimum set aside chosen by the applicant or"40/60"). All The Basic Statistical Models of these indicia are reflected in the criteria for allocating tax credits. In addition, we Table 3 presents results o1 simple ordi- gathered information on project location, nary least squares (OLS) regressions re- special facili ties and features.structureand ]atitrgvariotrs measures of residential con- construction details, the applicant and de- su-uctiou costs to the descriptors listed in veloper, and financing. fable _. Regressions are presented for We also determined whether project Both measures of project cost: `site and developers paid construction workers"pre structure" cost, including all construction wailing wages." Beginning in 1999, appli gage expenditures, and total "residential cants for LIIITC funding were asked to mums I and 2), the dependent variable is project cost. ' In the first specification (col- specifi� whether "use of federal, state or local subsidies requires that higher than the logarithm of cost,and the logarithm of norrna[wages must be paid."' We collected the ntnnber of units is included as a regres- developers' responses to this question in sot. In the second specification {columns,t the project information extracted from and 4),we impose constant -etnrns to stile; TCAC fifes. We then briefly interviewed variable. the logarithm of cost per unit is the depen- dentdevelopers by telephone to verify the pay_ ment of prevailing wages for each project. .As reported in Table 3,project costs vary These interviews determined whether pre b}' type of project, type of developer, and vailing wages were paid on LIHTC projects type of structure. There is also some evi- dence that.projects with larger fractions of alsoconrmed the `higher than normal " fi affordable"units had lower total costs and wages" information extracted from TCAC lower costs per unit. Projects completed I}lesforprojectapplicationsfledafterl99g. more recently tended to be more expert- files identified payment or nonpayment of sive, and those providing beneath-struc- prevailing wages for 175 of the 205 twe parking had higher costs. Irojects projects."' In the analysis below, the pre- with larger dwellings were more costly. as were those constructed o nailing wage indicator variable has a value n urban inf ll sites. of one when we have confirmed that pre- There are some differences in costs by loca nailing wages were paid, and is zero other- tion;projects located in San Francisco,Sac- wise. We have made no independent deter- ramento, and Los Angeles tended to be ruination concerning whether developers' more expensive to build. choices about the payment of prevailing The cost relationships reported in Table wages were legally mandated or, if so, S are generally, consistent for both specifi- cations and both definitions of cost. In whether the requirement arose from led era}, state, local requirements. particular,the simple OLS models indicate that, holding other factors constant, 'The LIHTC application thus clearly refers to re- quirements imposed as conditions for die attainment "In preliminary regressions,eleven project char- of government subsidies. thereby eliminating the acteristics its the TCAC data were individually and pos_dbitity that"higher than normal"wages are inter- jointh statistically insignificant. Excluding thern af- preted by the respondents to be higher-than-market fected the magnitude of the prevailing swage coeffi- union scale. hucniews with developers confirmed cient only negligibly and therefore theywere omitted that builders understood "prevailing wages' to be front these regressions. Fourteen geographical iden- those required by regulators,and hence the term is tillers are retained within the tnodelsbut,for the sal:e not to be considered synonvmouswith"union wages.' of simplicity, are not reported in the tables below. 7'In the remaining thirty cases. the developer 'these results are available from the authors on re- lacked information or could not be reached. quest. 148 INDUSTRIAL AND LABOR RELATIONS REVIENA' Table 2. Variable Definitions and Descriptive SUIIiStiCS. 205 Observations on LHITC, Pro1jects, Completed 1997-2002) Ale,/,, Standard bo,tation PicN,lifing Wage's One if prevailing X\agc,\.,C I, Jim d a,a result of federal.sIaIe,ot I o(a I rcquit cments.Zero ot h(.1 t�ic. 0.20 0.40 Units Number of units in In oicr 1. 82.79 56A 1 Affordability Fraction of units in project that meet Alm(Libilitv gLMICIMCI. 0.93 0.11 Ta)'.et 1;g " I. Non-Fal get ed One it-11161s are not targeted to a specific population,/clo olhcr"iw, 0.09 0.28 Scilior one il'units are targeted to seniors.zero otherwise- 0.28 0.45 SRO One it'linitS are single 1-0011)occupancy.zero otherwise. 0.02 O.IS Needs One if'units are taigt:tcd to special need, populations.zcio otherwise. ().Of 0.21 Time Occupancz date- Elapse(]time in days from _00 376 JuIv 19,1995. Parking One if project contains parking beneath the -wise. 17 structure,zero other 0.17 O.,t> Thice Bedrooms One it'�!50"",of units have'_1 3 bedrooms,zero other vvis- 0.31 0.16 Island On(,if project is on an island.Zero otherwise. o.0o 0,07 Special Facilities One if project contains special in-eck facilities. zero otherwise. 0.03 0.18 Mitigation One il'project]Cfjoires Sklbs[MIMII L'Miromnentai mitigation-zero otherwise. 0.05 0-23 Applicant Non-Profit One if applicant is a non-profit or gani/atioii, zero othenvise. 0.22 0.42 Developer For Profit One if developer is a lor-profit orgmiizatioii_ zero other Avise. 0.22 0.42 No3i Prot-it One if developer is a non-profit 01 gmlization. zero otherwise. O.41 0.49 Fundin', Fraction of project i funding fi-on) public sources. 0.19 0.21 Sources rs Number of different funding sources. 3.63 1.145 Bonds One if project re(ei\(-(t tax-exempt bond finance. 0.40 0.49 Structure Townhouse One if pro'ject is a townhouse_zero otherwise. 0.18 039 Cooperative One if project is a cooperative.zero other wise. 0.00 0.07 Two Stories One if project has tv,o or more stories,zero otherwise. 0,50 0.50 Single Family One if project is single famiIN detached,zero othenvise. 0.01 0.10 Infill One if development is an inner city infill site, zero othemise. 0.1 0.35 Residential Project Cost See text (millions of 9.39 6.54 Site and Structure Cost See text !millions of 5.14 3.50 PRFVAILING N1"AGF. REQUIREyIENTS AND LOW-INCOME HOUSING 149 projecispaving prevail i rig wages were aboLit construction projects is not exogenous to more costlx than otherwise identi- the other factors determining project costs. cal projects not subject to these regula- If projects located in higher-cost areas (for Lions." In columns (Ij and (`_�). the esti- example. in highly urbanized areas) were mated coefficient for the logarithm of the more likely to be required to pa,,prevailing number of units is statisticalh significant) wages (for example, because unions were less than one, suggesting that there were able to exercise more political influence in modest ecolionlies of scale in projects con- these regions), then simple ordinary least raining more dwellings. Despite this_mod- squares regression models would falser e1S using the logarithm of cost per trait as attribute these higher costs to the payment the dependent variable (therebvconstrain- of prevailing wages. Alternatively. lower- ing the model to reflect constant returns to cost areas of California may feature rela- scale) are quite similar: the magnitudes tively more intensive advocacy for prevail- and statistical significance of the coeffi- ing wages adoption and enforcement, in cients are also similar. which case OLS might falsely bias estimates N1'hen the geographic identifiers are re- of regulatory effects downward. movedfrom the specification,the explained Estimation of the models by the method variation is slightly lower, but the magni- of instrumental variables (IV) eliminates tulles of the other coefficients and their this source of bias and yields consistent statistical significance are quite compa- estimates of the effect of prevailing wage rable. IIowever, the e.stilnated coeffi- requirement on construction costs. Appro- cients for the prevailing wage variable priate instruments are variables that are are substantial]y larger, suggesting cost correlated with the regulatory classifica- increases of about l Sic for those projects Lion of projects—that is, identifeing those paving prevailing wages as compared to pavingprevailingwagesasopposedtothose projects for which this requirement was payingmarketwages—andthatdonotthem- not imposed. Results front specifications selves cause construction costs to vary. including interactions between geogra- From computerized voting information, phy and regulation suggest that prevail- we obtained the election results on ten ing wage effects on construction costs statewide California propositions for the did vary bv region within California." cityin which each ofthe 205 sample projects was located. X1'e also measured the party Instrumental Variables Estimates registration of voters in each jurisdiction, and the percentage of workers in highly It is possible that the requirement to pay unionized industries and occupations by prevailing wages imposed on some of these census place." Finally,we tabulated home- ownership rates and age distributions of the population in each jurisdiction,as well '"Since the dependent variable is the natural loga- as union membership in the relevant geo- rithnt of costs,the percentage change in cost due to graphical location, as a fraction of total pavrnent of prevailing N ages is the exponentiated coefficient tau that dutunn variable. 'age and Salary employment. "Geographic idetaifien specifv project location > by metropolitan statistical area (MSA). Geographic differences in cost appeal to halve been significanth greater in certain regions (for example, San Fran- cisco/"Oakland;"San jose.Los Angeles, Sacramento, "1iighly unionized industries and occupations are and Modesto) whether or not the pre ailing wage defined based on Current Population Survey data variable is included in the basic OLS model. t1'hen analyzed bvBarrvT.l lirschand David A.Mac pherson models include interactive variables reflecting both (2003). U;S.Census data on empiovntent by industry geographic and regulatory effects, it appears that and occupation for ernployed persons 16 years and prevailing wage regulation added significantl-greatei- older in each cen3tts place were used to compute the cost in the San Francisco rnetroporitan area than in variables "highly unionized industries-, and "highl}' otherhigh-costconstruction areasin California_These unionized occupations' associated with each of the results are also available from the authors on request_ 20s housing projects. 150 INDUSTRIAL AND L.-NOR RELATIONS REVIENV Table 3. OLS Models of'Construction Costs. (Dependent Variables in Logarithms) (L-ratios in parentheses) 7"wit Cost 'na Variable Sete and Sit, lild Striteluti,Crst Pr(qecl Ctsi sh-11(tilre Cait Pn'ilct Cast 0.103 0.097 0.091 0,091 (2.11) 1- -) (2.22) (2.561 Log Unit. 0.913 0.917 33.39) 11.G 7) - Affi-)i da bi I in -0.,552 -11.144 -0-303 -0.()97 I A W) Targeting Non-Tar-cted -0.15o -0.065 -0.138 -0.0 53 (2-56) (1.311) (2-30) 1.10) Senior- -0.168 -0.2o0 -0-1 S4 -0.215 (5.99) (4-37) (6.2t) SRO -0.541 -0.64 1 -0.57 7 -0.67 5 (5.62) (8.28) (5.88) (8.16) Needs -0.011 -0.091:1 -0.009 -0.091 (0.13) (1.40) f 0-11 1..",2) Time 4-878 6.561 '1.59 7 6.290 (3.01) (5.08) (2.79) f 1.70) Parking 0.173 O.155 0.201 o.182 (3.35) (3.713) (3.87) 1.3 0) Three Bedr-oorns 0.14.1 0.082 0.156 0.0911 (3.86) (2.74) (4-11) (3.04) Island 0.625 0.3 7 9 0.625 0.379 (2.94) (2.22) (2.87) (2.11) Special Facilities -0.223 0.035 -0.257 0.002 (2.19) (0.-12) (2.47) (0-02) Mitigation -0.061 0.053 -0-073 0_011 (0.84) (0.90, (0-9s) (0-68) Coritinved Arguably. these demographic and po- In this first stage,the dependentvariable litical variables affect the propensities of is the duniniv representing whether pre- local government and regional officials \,ailing xvages were required to be paid. to require payment of prevailing wages. Two models are presented, both includ- These demographic and political vari- ing the complete Set of instruments and abler have no direct causal effect on con- including all other variables presented StrUCti0T1 costs. Table 4 surnmarizes these in Table 2. As shown in the table, a measures of political and demographic number of the instruments are individu- variation across the sample of construe- ally significant at about the 0.10 level. AnF- tion projects, reporting the means and test for the joint significance of the instru- standard deviations. The table also re- meats when no other regressors are in- ports the results of the first stage regres- eluded is highly statistically significant. sions of the instrumental variables pro- When the other regressors are included. cedure. the F-ratio is significant at the 0.10 level. PREVAILING WAGE REQUIREMENTS AND LOW-INCOME HOUSING J5 I J'able 3, Continued. ---------- Total Cost Cot'PC) I"I'a Vanabb, Site nmd Site ai,d Styu(tarc Cost P"oly(f Cott Sfrn(Wie Co,( Prolp, (.2's I ppl i(an t Non-Profit -0.005 f).029 -0.008 0,026 A 16) Developer For Profit -O.ol7 -fOW; (0.061" Non Profit 0.115 0.052 0.147 (2.69) 1.',3) (3.46i Funding -0.118 0-142 -0.015 ().241 (1.25) (,1.87" (0.17) (3.2(i) Sources 0.016 0.005 O.n]I (1-39) 10-,1 Bonds -0.065 -0.098 0.0 C, (2A3) 2.0 5i Structure Townhouse 0.155 0.134 0.168 o.146 (3.17) (3.35) (3.571 Cooperative 0.697 0.459 0.871 0.629 (2.81) 2.?,0, (3-51) Two Stones 0.102 0.061 0-106 0-065 (2.65) (1.96) (2.69) (2.01) Single Family 0,371 o.243 0.399 0,1271 (2.13) 1 98'? (2.55) t 2.13) Infill 0.161 0.073 0.179 0.091 (3.15 (3.44) 12.14.1 Constant 6.313 4.951 6.190 4.831 (3.8()) (3.63) (3.48) R 2 0.932 0,955 0.732 0.802 Note: Regressions based on 205 obsen-ations on Ll I H C projects in California completed front 1997to21002. All models include 14 additional COM1701S for geographic location (by MSA1- Table 5 presents instrumental variables using instrumental variables, the coeffi- estimates of the same models reported in cient on the prevailing wage variable is Table 3. The pattern of magnitudes and larger in magnitude and is more pre- statistical significance of the coefficients cisely measured than in the ordinary in Table 5 is nearly identical to that pre- least squares regression. The ITSUIUS in viousIv reported. The coefficient on the Table --) imply that-for otherwise identi- logarithm of the number of units is sig- callow-income projects-prevailing ects-prevailing wage . I J nificantly less than one,again suggesting construction is between 19% and 28% modest scale economies. When the coef- more costly. Importantly, the finding ficient is constrained to one, represent- that prevailing wage legislation increases ing constant returns to scale-in the third housing costs does not arise simply be- and fourth columns of the table-the cause prevailing wages are more likely to substantive results are unchanged. be required in high-cost housing mar- Note that when the model is estimated 1ets. 152 INDUSTRIAL LABOR RELATIONS REVIENN' Table 4. First Stage Instruments in Two Stage Least Squares Models. (Dependent Variable: PreCailing t age) (I-ratios in parentheses) /drat Sty.",Coelfirzrrii 1'(ntable Alool (.Slawiar,r elevwfi(m) .'tlorld 1 t1udE1 2' Number of:Adjacent jurisdictions 7.140 0.002 0.002 0).49) (0.49i Fraction Yes Vote on Pt op. 199 0.386 -O.o13 0.057 Lour-lr:come Rental.Assistance. 199t3 :'0.08) 0.02; t0.lo) Fraction Yes Vote on Prop. 107 0.533 1.090 1.0811 Housing and Homeless Bonds. 1990 0.09) 1.21) (1.23) Fraction Yes role on Prop. 168 O.122 -1.283 -1.306 Low-Rent Hotising Proiects. I'.)93 (0.10) (1.5ti) (1.59) Fraction Yes Vote on Prop. 155 0.196 -0.877 -0.973 School Facilities Bonds. 1992 (it.1 2) )0.93) (1.031 Fraction Yen Vote on Prop. 156 0.483 0.723 0.757 Passenger Rail and Clean Air Bonds, I992 (0.09) (0.82) (0.86) Fraction Yes Vote on Prop. 157 0.330 -0.275 -0.427 Toll Roads and Highways. 1992 (0.13) (0.26) (0.41) Fraction Yes rote on Prop. 160 0.503 1.731 1.762 Project Tax Exemptions, 1992 (0.07) (1.74) (1.77) Fraction Fes Vote on Prop. 161 0.575 -0.617 -0.776 Tetm Limits. 1992 (U.12) (0.72) (0.89;t Fraction Yes Vote on Prop. 167 0.413 -1.730 -1.724 State Taxes, 1992 (0.07) (1-65) (1.64) Fraction Fes Vote on Prop.210 0.6-19 1.769 1.770 N4ltimum Wage Increase. 1996 (O.09) (1.47) (1.47) Percent of Voters Registered as Democrats (097 -1.136 -1.102 0.13) (1-35? (1.31) Percent of'Population over 40 Years Old 0.341 -0-209 -0.I 17 (0.061 i0.34) (0.1t7) Percent of Housing Units Owner-Occupied 0.554 -0.682 -0.717 (0.13) (1.ti0) (1.68) Percent Working in Highh unionized Industries 0.339 0.8111 0.836 (1.31i (1.31) Percent Working in Highh_ Unionized Occupations 0.265 -1.065 -L093 (0.07) (1.57; (1.61) Percent unionized 0.166 1.146 1.667 (o.06) (1-13) (1.28) F-ratio` 1.492 1.492 [p value] 10.1 1 J [O.]l J F-ratio" 2.981 2.981 [p value] I O.00I [0.00) 'Regression includes all observed project characteristics(coefficients not shown). "Regression includes log-units regressor,and all observed project characteristics (coefficients not shown). 'F-test for the joint significance of the instruments. `IF-test for the jo nt significance of the instruments in an equation including no other covariates. Both models include 14 additional controls£or geographic location (by MSA). PREVAILING N AGE REQUIREMENTS AND LOW-INCOME HOUSING 153 Conclusions cisco were more than 20Q7o costlier than elsewhere. There is also clear evidence of N1 e have presented the first s}stematic economies of scale in multifamily housing evidence showing the effects of prevailing construction. wage requirements on the costs of con Table b provides a sutnmary of the re- structing loin-income housing. Asample of' stilts of various econometric specifications 20,5low-income housing projectssubsidized as they pertain to prevailing wage require- bv the California Tax Credit Allocation tnertts. It presents m estimates of thepercent- Copnissicm during the 199i-200`_ period ral definitions of cost certified by TCA(' age increase in construction costs arising formed the basis for the empirical analysis. from theirntposition of prevailing wage regu- era estimated statistical models using AC, lation,boldinigconstantcharaeteristiessucli o as the projects sponsorship,its financing, and by an independent auditor; in tyvo and its location. specifications—one allowing for scale Using the most realistic specifications of economies in construction and the other imposing constant returns costs inhere geographic variation is ac- returns to scale. Finally; counted for,ordinary least squares models we estimated models both by ordinary least imply that prevailing wage requirements squares regression and by instrumental vari increased the cost of low-income housing ables techniques. Celeris fparibus, low-in construction between 9°Io and 114%c.` The come housing projects were significant], instrumental variables models imply that more expensive if developersyrere required Lost increases were higher—between 19�%0 to pay prevailing wages. Importantiv,these and 37(, for the most realistic specifica- cost increases did )iol arise simply because tions." These increases are far greater prevailing wages were more likely to be than those recently reported for construc- required in high-cost housing markets. tion wages (rather pro by The statistical models explain about90% z .her than overall F jects) Kessler and Katz (2001). There are several ofthe variation in construction costs across ways to harmonize our results with theirs. a broad sample of low-income housing First, our studv uses onll California data projects, and about 80`1' of the variation in rather than a 'multistate sample: the en- cost per unit built. The results confirm the forcement of prevailing wages may be more variation in costs by type of project. Single aggressive in California than elsewhere. room occupancy projects were consider- Second.Kessler and Katz reported smaller ably less expensive to build,while projects lc,c.reases in wage levels abler repeal of the targeted toward large families were more regulation. Price effects of wage re rula- expensive.'' Underground parking and g ti 6 greater numbers of three-bedroom units tion,captured more directly by our project- cost analysis, may linger long after repeal. also added significant v significantly to project costs. Finally,it is certainly possible that the pro- Construction costs ntavary by type of' cessof complying with prevailingwageregu- applicant and type of developer. Coopera- lations exacerbates known administrative tives and single-faith-dwellings appear to inefficiencies in tax-credit projects have been more costly to build. Some (Cummings and DiPasquale 1999). differences in construction costs are also apparent by geographical region. In par- ticular,newly constructed units in San Fran- "Alternatively,if tow-incorne housing is subsidized by 9-11�c and if prevailing wage requirements are imposed, these results suggest that developer costs were unchanged, hat income was transferred from 'Single room occtrpancv units lack individual bath- taxpayers to construction workers. rooms,kitchens.and living areas. To consider these "while it is possible that payment of prevailing aspects of housing costs,we also estimated the same wages attracts more productive construction workers, models reported in the text using cost per squarefoot these results indicate that higher wage costs out- as the dependent variable 'ncc results did not differ weighed anv unmeasured productivity gain in those substantially from those reported in the text. housing projects. 154 INDUSTRIAL AND LABOR RELATIONS REVIENV Tabic 5. Instrumental Variables Estimates of Construction Costs. (Dependent Variables in Logarithms) ((-ratios in parentheses) Total(")q I w i,bl, Site(1),f] .)al and Prmr,1 1"pst st'l u, Prevailing Wage 0.225 0.1 T 0.218 0.196 (2.58) 2.5 Log Units 0.910 0.911 33.261) 1.2,70 Allot dabilitN 152 -0.315 -0.105 I_55) (2.58) (1.05) ,largeti lig No,,-,ra,-g,t,-(i -0.187 -0.089 -0A52 -0.081 (208) (1.76) (2.85) (1.62) Senior -0.161 -o-1 95 -0.176 -0.210 (S,87) (5,78) (4.18) lJ;.081 SRO -0.5.54 -0.649 -0-.5 9 5 -0.6 8S (5.75) (8.32) (6.08) (8.59.) Needs -0-0 17 -0.117 -0.053 -0.122 (0.55) 1-fis) (0.61) L70, Time 1-327 6_200 3.900 5.806 (2.61) (4.67) (2.33) 1.211 Parking, 0.169 0.152 0-198 0.1_.IN 0- (3.28) ?,.65) (3.83) 1.25) Three Bedrooms 0117 0.mRz 1 0.161 0.097 (3.94) (2.79) (4.24) N>.13', Island 0.677 0.113 0.689 0.121 (3.16) (2-38) (3.15) (2.36) Special Facilities -0.236 0_026 -0.275 -0.0 11 (2.32) kO.,M,I (2-66) 3", Ccmilmurd Increases in project cost due to prevail- estimate the effect of'applying new prevail- ing wage regulation sit-rely lead to reduc- ing wage requirements to the share of-.in- tions in the number of nearly constructed nual production (about 151,686 units annu- low-income housing units produced ally)`not previously subject to these regu- thl-011011 I)Llll]iC subside. Consider, for ex- lations. If'costs were increased by just 9.5% ample,new dwellings completed under the as a result of prevailing wage legislation 1,11ITC. The federal allocation of tax cred- (the smallest increase predicted bar any of its provided financing for an average of 19,129 low-income housing units per year from 2000 to 2002 (including both new til)si(ii"c)i-tax-exeniptf-iiiicisi,)tii-c(-sliuvoii(I taxcred- construction and rehabilitation)."" W,e can its alone. The two categories are subject to different rules concerning the state's total credit-issuing au- thority. "See California Tax Credit Allocation Commince `On the basis of'our dataset, it appears that ap- Annual Ref)orls (2000-2002). The total credits re- proximately 20%of the LIHTC units,or about 3,443 ported combine those issued at the 9%,and 4%levels, annually,mat-have been governed by prevailing wage the latter being applied to projects using federal prior to the application of SB 975. PREVAILING WAGE REQUIRENIENTS AND LOW-INCOME 110USING, 155 Table 5. Continued. Total Co,t C"S/Pri t it ,Site'and Sill,and stnl(lim cost Protect Cost St rif i iii re(,(,A Project 0,i I Nfitigafimi -0.041 1).066 -0-0 19 0.05R (0.56) (1.11) )0.66) 0.9 1! Applicant Son-Profit -0.0 22 0.018 -0.029 0.011 (0.46) (0.61) (0.28) DcNelopci Noti-Profit o.105 0,0116 0.136 11.076 (2.45) (1-,)2) (1,221) (2.1 S'! 0.1 0.106 (I_7 (1.31) (0.S]) (2 SOL11 CCS 0,015 0.004 0.013 t).002 (1.32) (0.49) 1()) (0.24) Bondq _0.07.i W -0-075 (1.23) (2.70) Sirm ture o i,n h oi i se 0.148 0.121 0.160 u.140 (3.02) (3.2-1) (3.20) (3.43) Cooperative 0.725 0.477 0_9 16 0_659 2.92) (2.37) -7()) (3.25) Iwo Stories 0.090 0.053 0L092 0.055 (2.,':)2) (1.691 (2-32) 1 Jj9l, Single Family 0.118 0.274 o.459 0.312 (2.70) (2.18) (2.90) (2.41) hif-III 0.159 0.072 0.179 0.090 (3.13) 0.71) (3.4G) (2.13) Constant 6.926 5.352 6.943 5.354 (.1.07) (3.88) (4.00) 3.7 6" R 2 0.9.32 0.955 0.736 0.802 Regressions based on 205 observations on LIIf_I`C projects in California(ornplewd from 1997 to 2002. AU models include controls for geographic location (jv NMSM. our statistical models). 1,361 fewer subsi- how the imposition of prevailing wages af- dized dwellings would have been built. A Fects the supplV oflow-inconle housing Pro- cost increase of 25.2%, a mid-range level vided by the federal tax credit program. Of among the estimates presented in Table 6. course, the 1.11-ITC is not the only program would have resulted in 3,157 fewer low- providing low-income housing in Califor- income 110USing unit,-. And at a cost in- nia. In November 2002. California voters crease of 37.2%-our Upper bound esti- approved Pi-ol)ositi(-)i-i46,a$2.1 bill ion bond inate-the imposition of prevailing wage measure dedicated L(.*) affordable housing legislation would have prevented 4,253 low- development and related programs. About income housing units from being devel- half these funds are directed toward new oped. In this way-, state regulation of con- multifamily construction. 11'prevailing wage struction wages conflicts with the federal requirements are applied to dwellings built goal of increasing access to new housing for using proceeds from the tax-exempt bonds California's low-income households. and those from other existing programs- These estimates are illustrative rather the HOME program and the Community than definitive. But they do demonstrate Development Bloc], Grant Program. for 156 INDUSTRIAL AND LABOR RELATIONS REVIEW Table 6. Cost Increases for Loxv-lriconw Housing Projects in California Due to Prevailing Wage Requirements. S,ole S?",and .kIativi(al Mwk/ 1IC(,nl)n,ir,.s,AS,N!I)Iie("? SIrurbsl, (osl Co,t A.Ordiriary Least S(lum-cs E,innafion Extended )T'S 10-I I.0 I"'; NO 10 100 Basic )II:S 10.5 W.2 No 10-2 9-5 B.ljjqi min inal Variable,Estimation Extended YES 33.9 NO 37.2 35.9 Basic W.'s 25.2 19. NO 281 21.7 .Votes: 'Tmendcd" models im-Inde all obser\ud Project characteristics. "Basic" mod(-6 include onk the variables reported in 1aI}lr3. Est i inatt-sai t,based on t fie air i do,of coeffik ter it s on the pre\ailing wagc indicator variable in inultivariate regressions. example-the effect on low-income hosts- come from low-income housing consumers 0 ing production will be much larger. The in California to workers in California's(on- requirement would effeCrivelv transfer in- SISUCtioll in(IUSUV. REFERENCES :Alen. Steven G. 1983. 'Ninch !\(to about Davis- of the First'I en Years.— 11ousing Poliri Dvboir. \'of. Bacon: A Critical ReViCW and Nei% Evidence.' four- 10,No.2.pp.25 1-307- nat of Law and Fconomirs,Vol.26 No.2 (October). Fraundorf,Martha Norbi,john P-Farrell,and lZohert Pp- 707-36 Nla,,on- 1984. "The Effects of the Davis-Bacon Act Azari-Rad. Harnid, Peter Philips, and Mark J. Prus-, on Construction onstruclion Costs in Rural Areas.' Aevirzv of 2002. "Making Hav When It Rains: The Effect E,ronomwn and Statistics, Vol. 66 No. I ffebriiavv). Prevailing XVage Regulations,Scale Economies.Sea- pp. 142-16. sonal.CN-clical,and Local Business Patterns HaN e on General Accounting Officc I-LEFIS-99-2 1. 1999. School Construction Costs," Journal of E-dwalion "Davis-Bacon Act: Labor Now Verifies Wage Data. Finance,Vol.27,No.4 (Spring),pp.997-1012. but Verification Process Needs Improvernunt." 2003. "State Pre%ail ing Wage Laws and School Washington. D.C.,januar). Construction Costs.- lndust?ial Relations, Vol. 42, 1979. "The No.3 auh).pp.4,15-57. Davis-Bacon Act Should Be Repealed.— Xlashiug- Bilginsov.Cilian,and Peter Philips. 2000. "Prevail- ton.D.C..April 27. ing Wage Regulations and School Construction Goldfarb, Robert S., and John F. Muirall 111. 1978. Costs: Evideticef-rojiiBi-itisliColiiiiil)ia.",Iour?i(ilof "Cost Implications of Changing Davis-Bacon Ad- Education Finance-Vol.24,No.3(Winter).pp.415- ministration.- ]"Win,Anal.yiis, Vol. 1,No. 2 (Fall), 32. pp.439-53. California'I as Credit Allocation Committee. 2000- - 1981. "Me Davis-Bacon Act: An Appraisal of 2002,AnnualRelio7t. Sacramento:State Treasurer's Recent Studies." Industrial and Labor Relations Re- Office, MP711.Vol.34,No.2 (January).pp. 191-206. Card. David. and Alan R. Krueger. 1995, :Wyth and 1980. The iVlea,,urement: The New Economics of the Minivium Economics of the Davis-Baron.art: An A uoly%is of 1rc- rt`(rgqe. Princeton.NJ.: Princeton University Press. zwdin, (Page Laws. Washington, D.C,: American ' Curnmings,jean L., and Denise DiPascInale. 1999. Enterprise Institute for Public Policy Research. "The Lore-Income HousingTax Credit: An AnalysisHirsch, Barry T., and David A. Macpherson. 2003. PREVAILING WAGE REQUIREMENTS AND LOW-INCOME HOUSING 157 "Union Membership and Coverage Database from Ilistmv. Purpose. and Effect." University•of Utah the Current Pupnlation Sol-Nev: Note." Industrial Department of Economics.October. and La bur hrlrrnr,lrs R,viru.Vol-5G.Nu.2 Oanuan i. -- 2ofil. "A Comparison of Public School Coil- pp. 349—:5-1. 11-M-6011 ('ostS in Three hfich,estern States "Ihat HUD(U.S,Deparinwrit of Ilousingand Urban Deccl- Ilacr Changed Their Prevailing Wage Laws in the opment,r_ l9s 1. "housing snider the Davis Bacon 1990.: I.et,tu(l.i.Ohio.and Nfichigan," Frbruarc. .act."Mime,). Prepared for the Piesident'sCorioiis- Philips.Peter.Garth'Mangum,Norm Wait/man.and sign on I1011sinL,,NOvenlber. Ann,-Yuag c. "Losing Ground: I_essonsfrum Kentuckc Legislative Research Commission. 200L the Rep,al of\irn,Little Davis-Bacon Acts." 1Vork- ".-An ,Analysis of Kemuckv*s Pievailing Wage Laws ing piper. Univcisity of Utah Economics Depart- and Pro(u(Imes_`ResearchReport No.!,01,Dect-m- nrrut.(e-hrnars. her 13. Pins_ Alark i 16116. `The Effect of Stale Prevailing Kessler.Daniel 1'..and Lavvrencc F.Katz. 2001. -Pre- AA age La:,s on fotal Coiutniction Costs.- State caning Wag(- Lau, and Construction Labor Mar- Limvi,ity of 1cc,fork at Coi tland,,)anuarc. Avail- kets." bidu,trial,rod Labor Relations Revipw.Vol_5 L able m http:;/wcvlv.htircontracting.org. No.2 (I(anuati),pp._>.-)9—;4. ___--= 1999 `Pr evAling Mate Laces and School Con- Metvger. Alichael R.,and Robert S.Goldfarb. 1983. struction Costs_" Prepared for Prince George's "Do Davis-Bak-on Minimum Wages Raise- Product (munn Coinicil,Mareland_jartuarv. Quahtv"' Join nal of Labor Re.wgrch, Vol. 4, No. 1hieblot, Armand J. 1975. The Davis-Bacon Act. (Summer). pp. 'GJ-72. Labor Relations and Public Policy Series, Report Newman. Natihcw. and Shaven Blosser. 2003- "An No. lo. Philadelphia: Unhersity of Pennsxhania ,Analcsis of Market and Prevailing AWage Rates for Press. the Construction Trades in Califui uia.- Nlimeo. _ 1996. ":A Nei% Evaluation of Effects of Precail- Sacramento.C.alifornialnstituteofCouniiGmeru- ingA\agrLacvRepeal."IountalolLaborRev(i?rli.Vol. ment. 17. No. 2 (Spring).pp.297-322. Ohio Le gislatke Sere ice Cummissiou. 2002. "SB 102 _ 1997. -Prevailing Wage Laws and Market Report The Effects of the Exemption of School Recoeerc Strategies of Construction Unions." jour- Construt tion Projects from Ohio"s Preiaihng Wage ual u/Luborlieserrrh.Vul.18.No.I (Wioter),pp.31— Law." Staff Research Report No. 119.May 20. 46. Philips, Peter. 1996. "Kai?sas and Prevailing Wagc 1999. "Prevailing Wage Laces and BIack Em- Legislation." Prepared for the Kansas Senate Labor plovment in the Construction Industry.-journal of and indu_airies Committee. February 20. Aiail-able Lobo,i{va emb,Vol.20,No. I (Winterl.pp,155-59. at htip:,"'u,vw.fair con tracting.oig. 14)95. "State Prevailing\Vage L,aws." Prepared 1999. 'Kentucky's Prevailing Wage Laic: Its for.As ociated Builders and Contractois, Inc. An Analysis of Market and Prevailing wage hates for the Construction Trades in California Prepared by Matthew Newman Shawn Blosser The California Institute for County Government July 28, 2003 Executive Summary This study examines various construction trade wage rates in California. Specifically. it compares wage rates for five job categories on a county-by-county basis: carpenters. electricians, drywall installers, HVAC/sheet metal workers, and plumbers. For each of these trades,data were collected for(1) market wage rates(combined residential and commercial construction), (2) Davis-Bacon federal prevailing wage rates for residential construction. (3) Davis-Bacon federal prevailing wage rates for commercial construction, and (4) California state prevailing wage rates for commercial construction. To calculate aggregate statistics for all of California,two estimates were constructed: (1) an equally-weighted average across all counties and (2) a population-weighted average across all counties, with each county weighted by its 2002 population. Using the data described above, three analyses were performed. The first analysis compared state commercial prevailing wage rates to average market wage rates, and found that for the five trades examined, the commercial prevailing wage rates are, on average,about one-third to one-half more than current market rates(the actual differences range from 36%higher for carpenters to 55%higher for plumbers). The second analysis compared the same state commercial prevailing wage rates to the comparable federal Davis-Bacon commercial prevailing wage rates and found that these two rates are on average extremely close (within 0-2%difference). The third analysis compared the federal Davis-Bacon commercial prevailing wage rates to the Davis-Bacon residential prevailing wage rates, and found that the commercial rates were on average 14%to 53%higher. ' Because California's Department of Industrial Relations(DIR)determines prevailing wage rates for residential construction on a project-by-project basis and does not publish these rates,they were not available to be used for this analysis. Page l Data Sources California commercial prevailing wage rates are published by the California Department of Industrial Relations' (DIR) Division of Labor Statistics and Research. The DIR most often bases its prevailing wage rates directly on existing collective bargaining agreements. See Appendix A for a more detailed description of the methodology used by the DIR to calculate these wage rates. The rates used for this analysis represent simple wages without benefits or overtime pay. The DIR data used in this analysis were downloaded on May 23, 2003 from the DIR website at http:'i«����.d ir.ea.�ov,•DLSIZ:-P W Diindex,l�tm. Market wage rates used in this analysis are the "Mean Hourly Wage" for 2002, as reported by the California Employment Development Department (EDD). The data are reported for each county, and represent the average wage rate (excluding benefits) for both union and non-union workers. The"Mean Hourly Wage" is determined based on a survey of industries and employees, and then a weighted average of those results. See Appendix B for a more detailed description of the methodology used by the EDD to calculate these wages. The data for this analysis were downloaded on May 5, 2003 from the EDD website at http:!/www.calznis.ca.govilitmlfile:°"subject.-"occup$.Iitm. The population for each county was downloaded from the California Department of Finance website (http: txN-�vw.dol'.ca,govii ITMLIDE\<I0(iRAP:'E-5text2.htm) in June, 2003. The figures used represent estimates of each county's population in 2002. Federal Davis-Bacon prevailing wage rates (residential and commercial) are determined by the U.S. Department of Labor. The Department of Labor conducts a survey of contractors, employers and employees, and uses the mode or mean of the survey results to determine the prevailing wage for an area. See Appendix C for a more Page 2 detailed description of the methodology used by the Department of Labor to calculate these wages. The Davis-Bacon data used for this analysis were downloaded from the GPO-access website on May 25. 2003. The Davis-Bacon wage rates as downloaded were already divided into residential and commercial wage rates for each trade. When multiple wage rates were given for a specific trade within a county, different rates usually were distinguished by one or more of the following three types of characteristics: 1) Geography (e.g., east of the Sierra watershed vs. west of the Sierra watershed) 2) Size of project(e.g.,total project costs over$25 million vs. under$25 million) 3) Type of work or scope of project(e.g., structures up to and including 4 stories vs. those with 5 stories or more) Whenever more than one wage rate was given in the Davis-Bacon data, care was taken to ensure that the correct rate or rates were used so that valid comparisons could be made with wage rates from the other sources. This usually involved either selecting the single most comparable rate based on the description given, or taking the average of two or more rates. For a complete listing of instances where an average wage rate was calculated, see the notes in Appendix D. Page 3 Analysis The analysis conducted for this study was done to answer the following three questions: 1) How do the published California commercial prevailing wage rates compare to market rates in general, and are there pronounced regional differences in different parts of California? 2) How do Davis-Bacon commercial prevailing wage rates compare to DIR commercial prevailing wage rates? 3) How do Davis-Bacon commercial prevailing wage rates compare to Davis-Bacon residential prevailing wage rates? As mentioned above, statistics were calculated for each analysis on a county-by- county basis, and then summarized across all counties in two ways: (1) a simple average where each county is weighted equally and(2) a population-weighted average where each county is weighted by its 2002 population. Calculating the population-weighted average provides a more representative estimate to the extent that construction occurs proportionally to the population in a given area. (1) California commercial prevailing wage rates vs. market wage rates This analysis compares the California prevailing wage rates for commercial construction as published by the DIR with the market wage rate as published by the EDD. The comparison is conducted for each of the five trades on a county-by-county basis. The results of this comparison, as summarized in Table I below, indicate that DIR prevailing wage rates are significantly higher than market wage rates,with considerable variation across trades. The DIR commercial prevailing wage rates range from 28%higher for carpenters to 61%higher for H VAC/sheet metal workers when each county is weighted Page 4 equally. and from 36% for carpenters to 55%for plumbers when each county is weighted by its population. Appendix E.presents a more detailed county-by county summary of the results of this comparison. Table 1:California DIR Commercial Prevailing Wage Rates vs.EDD Market Wage Rates (Percent by which DIR prevailing wage rate is greater than EDD market rate) Simple Avg. Population-Weighted Avg. Carpenter 28% 36% Drywall Installer 43% 41% Electrician* 41% 40% HVAC/Sheet Metal Worker 61% 53% Plumber 56% 55% *Yolo County could not be included in the analysis for electricians because the EDD data did not include a market wage rate for electricians for this county. A county-by-county comparison of DIR commercial prevailing wage rates with EDD market wage rates reveals significant variation, both across trades and among regions of the state.In the vast majority of cases,the DIR commercial prevailing wage rate is higher than the market wage rate (although there are a few counties where the prevailing wage rate is lower than the published market rate for a particular trade). In fact,there are a number of instances where the DIR prevailing wage rate is more than 100%greater than the average market rate, with the greatest difference being 149%(see San Benito county for plumbers). While this variation makes it difficult to generalize across counties and trades, Figure I below provides a map presenting the difference between commercial prevailing wages and market wages for carpenters in each county in the state.As the map in Figure 1 shows,the largest differential for carpenters occurs generally in the southeastern (50- 60% increase)and central (60-70% increase) counties. In contrast,the northeastern Page 5 counties and coastal Bay Area counties have in general a much smaller differential (10- 20% increase).Note that this analysis applies only to carpenters. and other trades may exhibit different patterns of wage differentials. Appendix E contains similar maps for the other trades examined. Figure 1: California DIR Commercial Prevailing Wage Rates vs. EDD Market Rates for Carpenters (Percent by which DIR prevailing wage rate is greater than EDD market rate) 0%to 10%Greater 10%to 20%Greater - 20%to 30%Greater 30%to 40%Greater � a 40%to 50%Greater 3` a s 50%to 60%Greater ` 60%to 70%Greater va�k I r � � 0� Page 6 (2) Commercial prevailing wage rates: Davis-Bacon federal prevailing wage rates vs. DIR state prevailing wage rates This analysis compares the Davis-Bacon federal prevailing wage rates for commercial construction against the comparable DIR California state prevailing wage rates for commercial construction.Because some of the data series presented in the Davis-Bacon wage rates have not been updated recently,this analysis was conducted in two ways—first using all of the available data regardless of when the wage rate was last updated, and, second, looking only at more recent Davis-Bacon data, which for the purposes of this analysis was defined as data that has been updated within the last four years (since June l, 1999). A summary of the results of this analysis is presented in Table 2,below, with more detailed results for each county given in Appendix F. Table 2:DIR Commercial Prevailing Wage Rates vs.Davis-Bacon Commercial Rates (Percent by which DIR prevailing wage rate is greater than Davis-Bacon prevailing wage rate) Simple Population- Avg. Weighted Avg. Counties/Population Included Using All Available Davis-Bacon Data Series:' Carpenter 3% 2% All Drywall Installer 3% 2% All Electrician 7% 1% All HVAC/Sheet Metal Worker 1% 0% All Plumber 6% 1% All Using Only Recent Davis-Bacon Data Series z Carpenter 0% l% (52 counties) (97.9%of Pop.) Drywall Installer 0% 2% (53 counties) (99.0%of Pop.) Electrician 1% 0% (53 counties) (99.0%of Pop.) HVAC/Sheet Metal Worker -2% 0% (53 counties) (99.0%of Pop.) Plumber 1% 0% (53 counties) (99.0%of Pop.) Notes: This analysis was performed using all available Davis-Bacon data series,regardless of the date that data series was last updated.All 58 counties had the necessary data for this analysis. This analysis was performed using only counties for which Davis-Bacon commercial data series were last updated on 6/1/1999 or later.When this filter is applied,some counties are no longer included in the analysis as shown. Page 7 As Table 2 shows, Davis-Bacon commercial prevailing wage rates are quite close to the DIR's commercial prevailing wage rates (between I and 7%for the simple average across counties, and between 0 and 2%on a population-weighted basis). When only the recent Davis-Bacon data are used,the differences narrow for the simple average to between 0 and 2%, and remain within that narrow range for the population-weighted average. (3) Davis-Bacon federal prevailing wage rates: residential vs. commercial rates This analysis compares the Davis-Bacon federal prevailing wage rates for commercial construction against the comparable prevailing wage rates for residential construction.Again,the comparison is conducted for each of the five trades on a county- by-county basis, and the estimates are done both using all of the Davis-Bacon data and then using only the more recent Davis-Bacon data. The results are summarized in Table 3 below,with more detailed county-by-county results presented in Appendix G. Page 8 Table 3:Federal Davis-Bacon Prevailing Wage Rates:Commercial vs.Residential (Percent by which commercial rates are greater than residential rates) Simple Population- Avg. Weighted Avg. Counties/Population Included Using All Available Davis-Bacon Data Series:' Carpenter 52% 36% (58 counties) (100.0%of Pop.) Drywall Installer 38% 36% (46 counties) (96.6%of Pop.) Electrician 89°% 56% (58 counties) (100.0%of Pop.) HVAC/Sheet Metal Worker 64% 19% (42 counties) (89.7%of Pop.) Plumber 85% 39% (56 counties) (99.9%of Pop.) Using Only Recent Davis-Bacon Data Series:' Carpenter 18% 34% (37 counties) (95.7%of Pop.) Drywall Installer 26% 35% (35 counties) (94.8%of Pop.) Electrician 40% 53% (34 counties) (87.9%of Pop.) HVAC/Sheet Metal Worker 11% 14% (31 counties) (87.4%of Pop.) Plumber 42% 36% (38 counties) (96.8%of Pop.) Notes: 'This analysis was performed using all available Davis-Bacon data series,regardless of the date that data series was last updated. Some counties did not have Davis-Bacon residential prevailing wage rates for some trades,and could therefore not be included in the analysis as shown above. `This analysis was performed using only counties for which Davis-Bacon commercial data series were last updated on 6/1/1999 or later.When this filter is applied,more counties are no longer able to be included in the analysis as shown. As Table 3 (above) shows,the simple average difference between commercial and residential prevailing wage rates ranges from 38%to 89%higher when each county is weighted equally, and from 19%to 56%higher when each county is weighted by its population. When only recent data are included,however,the difference between commercial and residential Davis-Bacon prevailing wage rates decreases considerably for the simple-average across counties, and decreases somewhat for the population-weighted average.As the table shows,the minimum average difference goes from 19%to 14%for HVAC/sheet metal workers, and the maximum average difference goes from 56%to 53% for electricians. For all five of the trades examined, the population-weighted figures change by fewer than 5 percentage points, indicating that these estimates are quite robust. Page 9 Conclusions The analyses described above clearly show that prevailing wage rates differ considerably from market wage rates.that state and federal commercial prevailing wage rates are nearly identical, and that the Davis-Bacon prevailing wage rates differ considerably between commercial and residential construction. While there is a great deal of variation across counties and among the five construction trades examined, three clear patterns emerge when the data are examined for California as a whole: 1) The current prevailing wage rates for commercial construction as determined by the DIR are considerably higher than the average market wage rates for the same trade. Based on this analysis, the DIR rates are on average about 36%to 55% higher. 2) The current Davis-Bacon commercial prevailing wage rates for federally-funded construction projects are very close to the DIR commercial prevailing wage rates for state-funded construction projects. For the state as a whole,the two rates are on average within 2%of one another. and, for most trades. identical. 3) The current Davis-Bacon commercial prevailing wage rates are considerably higher than the Davis-Bacon residential prevailing wage rates. When analyzing only the most recent Davis-Bacon data series,the commercial rates range from 14%to 53% higher than the residential rates, with a median difference of approximately 35%. While this analysis has not attempted to explain the reasons behind the differences in residential and commercial construction prevailing wage rates,the analyses performed clearly indicate that commercial prevailing wage rates are considerably higher. Thus,the imposition of commercial prevailing wage rates on residential construction projects likely would lead to increased labor costs for these projects, although the magnitude of the increased costs is unclear.Further research is necessary to determine exactly how these increased labor costs could impact the cost of residential construction projects in California. Page 10 Appendix A: DIR methodology for calculating commercial prevailing wage rates The Director of the Department of Industrial Relations determines the prevailing wage for particular crafts or classifications of work within each region (generally a county). The prevailing wage is defined as the wage paid to the majority of workers, or, if nto single wage is paid to the majority then the prevailing wage is that wage most commonly paid (i.e.the Mode wage). The determination process, as outlined by California's labor code is as follows: 1. The DIR determines the basic hourly wage paid to a majority of workers in a particular craft or classification of work in a particular locality. The wage paid to a majority of workers is the prevailing wage. 2. If a majority of workers are not paid one single rate, than the "single rate being paid to the greatest number of workers" or the modal rate, is considered the prevailing wage. 3. The Director may determine the prevailing wage based a review of appropriate collective bargaining agreements, federal prevailing wage rates, or other data. In practice,the most commonly paid(or modal)wage rate will be that rate specified in collective bargaining agreements. 4. If the Director determines that the prevailing wage is the rate established by a collective bargaining agreement, any provisions in that agreement that will change the rate paid to workers will be incorporated into the prevailing wage determinations. For example, if a collective bargaining agreement included a scheduled increase in wage rates paid to employees,the prevailing wage determination would increase at the same time. California Labor Code Section 1773.9 1773.9. (a)The Director of Industrial Relations shall use the methodology set forth in subdivision(b)to determine the general prevailing rate of.per diem wages in the locality in which the public work is to be performed. (b) The general prevailing rate of per diem wages includes all of the following: (1)The basic hourly wage rate being paid to a majority of workers engaged in the particular craft, classification, or type of work within the locality and in the nearest labor market area,if a majority of the workers is paid at a single rate. If no single rate is being paid to a majority of the workers,then the single rate being paid to the greatest number of workers,or modal rate,is prevailing. If a modal rate cannot be determined, then the director shall establish an alternative rate, consistent with the methodology for determining the modal rate,by considering the appropriate collective bargaining agreements, federal rates,rates in the nearest labor market area, or other data such as wage survey data. (2)Other employer payments included in per diem wages pursuant to Section 1773.1 and as included as part of the total hourly wage rate from which the basic hourly wage rate was derived. In the event the total hourly wage rate does not include any employer payments,the director shall establish a prevailing employer payment rate by the same procedure set forth in paragraph (1). Page Ll (3)The rate for holiday and overtime work shall be those rates specified in the collective bargaining agreement when the basic hourly rate is based on a collective bargaining agreement rate. In the event the basic hourly rate is not based on a collective bargaining agreement,the rate for holidays and overtime work. if any, included with the prevailing basic hourly rate of pay shall be prevailing. (c) If the director determines that the general prevailing rate of per diem wages is the rate established by a collective bargaining agreement, and that the collective bargaining agreement contains definite and predetermined changes during its term that will affect the rate adopted,the director shall incorporate those changes into the determination. Predetermined changes that are rescinded prior to their effective date shall not be enforced. Additional information is available at: bin:`clisplavcode`�sectiun=ltl�crc u _ l )t)4-( 2(i(t( tile=l;%7t}-1? ( Page 12 Appendix B: EDD methodology for calculating market wage rates The "Mean Hourly Wage" is the estimated total wages for an occupation divided by the estimated employment for that occupation. Both estimates of wages and employment are based on the Occupational Employment Statistics Survey. This survey uses the Standard Occupational Classification system of occupations (established by the federal government)to determine employment, and wage intervals to determine pay. There are 12 wage intervals, starting with employees paid"Under$6.75 per hour," and going up to 4'$70.00 per hour and over." For more information see .cairrais.ca_gov:Tile.-;occupS,/oesN,af.es%(>estecliiiotcs.htnl. Page 13 Appendix C: U.S. Department of Labor methodology for calculating Davis-Bacon prevailing wage rates The Administrator of the Wage and Hour Division of the Department of Labor determines the Federal Davis-Bacon prevailing wage as follows: I. The prevailing wage is the wage paid to the majority of workers. If no single wage is paid to a majority,then the weighted average wage is determined to be the prevailing wage. 2. Wage data is collected via voluntary submissions of wage information in a 'survey.' 3. This data may include collective bargaining agreements, state and local prevailing wage rates. wage rates from contracting agencies, and wage rates on recent projects. It may not include wages paid on federally funded projects (so that prevailing wage determinations may reflect market wages, not the already existing federal prevailing wage). 4. Union rates will be used if they are found to be prevailing (51%). Otherwise, a weighted average will be taken and used. 5. New `surveys" are conducted every three years to update information, with a staggered schedule. Code of Federal Regulations 29 CFR 1.3 - Obtaining and compiling wage rate information. (Source: Davis-Bacon and Related Acts) For the purpose of making wage determinations, the Administrator will conduct a continuing program for the obtaining and compiling of wage rate information. (a)The Administrator will encourage the voluntary submission of wage rate data by contractors, contractors' associations, labor organizations,public officials and other interested parties, reflecting wage rates paid to laborers and mechanics on various types of construction in the area. The Administrator may also obtain data from agencies on wage rates paid on construction projects under their jurisdiction. The information submitted should reflect not only the wage rates paid a particular classification in an area,but also the type or typs of construction on which such rate or rates are paid, and whether or not such rates were paid on Federal or federally assisted projects subject to Davis-Bacon prevailing wage requirements. (b)The following types of information may be considered in making wage rate determinations: (1) Statements showing wage rates paid on projects. Such statements should include the names and addresses of contractors, including subcontractors, the locations, approximate costs,dates of construction and types of projects, whether or not the projects are Federal or federally assisted projects subject to Davis- Bacon prevailing wage requirements,the number of workers employed in each classification on each project, and the respective wage rates paid such workers. (2) Signed collective bargaining agreements. The Administrator may request the parties to an agreement to submit statements certifying to its scope and application. Page 14 (3) Wage rates determined for public construction by State and local officials pursuant to State and local prevailing wage legislation. (4) In making wage rate determinations pursuant to 23 U.S.C. 113, the highway department of the State in which a project in the Federal-Aid highway system is to be performed shall be consulted. Before making a determination of wage rates for such a project the Administrator shall give due regard to the information thus obtained. (5) Wage rate data submitted to the Department of Labor by contracting agencies pursuant to 29 CFR 5.5(a)(1)(ii). (6)Any other information pertinent to the determination of prevailing wage rates. (c) The Administrator may initially obtain or supplement such information obtained on a voluntary basis by such means, including the holding of hearings. and from any sources determined to be necessary.All information of the types described in Sec. 1.3(b) of this part, pertinent to the determination of the wages prevailing at the time of issuance of the wage determination, will be evaluated in the light of Sec. 1.2(a)of this part. (d)In compiling wage rate data for building and residential wage determinations,the Administrator will not use data from Federal or federally assisted projects subject to Davis-Bacon prevailing wage requirements unless it is determined that there is insufficient wage data to determine the prevailing wages in the absence of such data. Data from Federal or federally assisted projects will be used in compiling wage rate data for heavy and highway wage determinations. Available at: http:/hwwwy.labor.gov,"esa/whd"contractsidbra.htm. Page 15 Appendix Additional Notes The following notes apply to all of the analyses associated with the comparison of various Federal Davis-Bacon prevailing wage rates and California (DIR) prevailing wage rates, as well as market wage rates, for various types of construction occupations. Listing of Sources Used: Federal Davis-Bacon prevailing wage rates: Residential and commercial prevailing wage rates are determined for each California county by the U.S. Department of Labor and are made available on the federal government's GPO-Access website at http://www.access.gpo,gov/davisbacon/ca.htm1. The rates used here were downloaded from this site on 5/25/2003. California (DIR) prevailing wage rates: Commercial prevailing wage rates are made available by the California Department of Industrial Relations (DIR) Division of Labor Statistics and Research. The rates used here were downloaded from their website at http://www.dir.ca.gov/DLSR/PWD/index.htm on 5/23/2003. Population statistics: Source: California Department of Finance, 2002 figures, taken from http://www.dof.ca.gov/HTML/DEMOGRAP/E-5text2.htm. Market Mean wage rates (EDD): Market wage rates used are the"Mean Hourly Wage"for 2002, as reported by the California Employment Development Department (EDD) and downloaded from their website at http://www.calmis.ca.gov/htmifile/subject/occup$.htm (downloaded on 5/5/2003). Notes on Specific Davis-Bacon Wage Rates Used: Whenever possible, the most appropriate Davis-Bacon wage rate was used, based on the description given. Such determinations were usually based on one or more of the following types of descriptions: (1) The type of work performed (e.g., light commercial, industrial, work on certain types of structures, etc.) (2) The size of the project for which the work is performed (e.g., projects with a total value above or below a certain dollar figure, etc.) (3) The geographic location where the work is performed. , When these types of descriptions were given, the rate most consistent with other available sources was selected if it could be determined, in order to ensure consistent comparisons across counties for a given type of construction occupation for commercial or residential construction. If a single rate could not be determined, the simple average of all the potentially appropriate rates was used. See the attached table for a listing of all specific instances where an average of various given rates was used instead of a single rate. Appendix D Additional Notes - Table of Instances where Average Davis-Bacon Rate was Calculated and Used The following determinations represent all instances when a single Davis-Bacon wage rate was not used, but an average of various given rates was instead used: Residential/ County Trade Commercial Rate Used Notes 1. ALAMEDA HVAC COMMERCIAL $34.56 Rate used represents the average of two rates given: "Work on projects with an HVAC contract price of $270,000 equipped with packaged units or a unitary system;Also,tenant completion work extending from an existing trunk line or an existing water or air loop to registers and/or diffusers;also,remodel or add-on contracts on existing facilities providing the contract price is$165,000 or less;Also,architectural sheet metal contracts of$100,000 or less;Also,pre-engineered and pre-manufactured siding"($31.71)and"All Other Work($37.40) 2. AMADOR PLUMBER COMMERCIAL $20.88 Rate represents average of two rates given: "(northern half)"($19.72)and"(southern half)"($22.03) 3. AMADOR PLUMBER RESIDENTIAL $20.88 Rate represents average of two rates given: "(northern half)"($19.72)and"(southern half)"($22.03) 4. CONTRA COSTA HVAC COMMERCIAL $34.56 Rate used represents the average of two rates given: "Work on projects with an HVAC contract price of $270,000 equipped with packaged units or a unitary system;Also,tenant completion work extending from an existing trunk line or an existing water or air loop to registers and/or diffusers;also,remodel or add-on contracts on existing facilities providing the contract price is$165,000 or less;Also,architectural sheet metal contracts of$100,000 or less;Also,pre-engineered and pre-manufactured siding"($31.71)and"All Other Work($37.40) 5. ELDORADO ELECTRICIAN RESIDENTIAL $26.16 Rate used represents the average of two rates given: "Work on single family homes and apartments up to and including 3 stories"($20.10)and"Ali other residential work"($32.21). Note also this is only for west of Main Sierra Mountains watershed. 6. EL DORADO PLUMBER COMMERCIAL $25.45 Rate represents average of three rates given: "Lake Tahoe Area only"($23.95);"Excluding Lake Tahoe area (Light Commercial Work)"($21.43); and"Excluding Lake Tahoe area(All Other Work)"($30.97) 7. ELDORADO PLUMBER RESIDENTIAL $19.04 Rate represents average of two rates given: "(Lake Tahoe basin only)"($16.65)and"(Does not include Lake Tahoe area)"($21.43) 8. FRESNO ELECTRICIAN RESIDENTIAL $17.80 Rate used represents the average of two rates given: "Construction,alteration,and/or repair of all units built solely for family residence,including mobile homes,single family residence,triplexes,quadruplexes and walkup garden type apartments or walkup condonimiums not to exceed two stories"($10.00)and"All Other Work"($25.60) 9. IMPERIAL ELECTRICIAN RESIDENTIAL $19.41 Rate used represents the average of two rates: "Work on single family homes,duplexes,condominiums and apartments that do not exceed three(3)stories"($14.61)and"All other residential construction: Electrical subcontracts of$500,000 or less"($24.21). 10. KERN HVAC COMMERCIAL $27.09 Rate used represents the average of two rates given: "Work on all commercial HVAC for creature comfort and computers clean rooms,architectural metals,metal roofing and lagging,over insulation(East of Hwy #395 from Red Mountain to the Inyo County)"($28.99)and"Work on all new construction and remodel work except commercial buildings less than ten thousand(10,000)square feet(excluding that portion east of Highway 395)"($25,18) Appendix D Additional Notes - Table of Instances where Average Davis-Bacon Rate was Calculated and Used The following determinations represent all instances when a single Davis-Bacon wage rate was not used, but an average of various given rates was instead used: Residential/ County Trade Commercial Rate Used Notes 11. KERN PLUMBER COMMERCIAL $25.34 Rate represents average of three rates given: "Encompasses the far eastern side of Kern County,which includes Edwards Air Force Base,Rosamond,Boron,China Lake Naval Weapons Center and RidgecresT" ($27.67);"Encompasses all the central valley: Bakersfield, Lamont,Arvin, Frazier Park,Taft,Shafter, Wasco, McFarland and Deleano"($22.67); and"Encompasses Kernville,Tehachapi,Lake Isabella, Mohave, Monolith and Weldon"($25.67) 12, KERN PLUMBER RESIDENTIAL $25.34 Rate represents average of three rates given: "Encompasses the far eastern side of Kern County,which includes Edwards Air Force Base,Rosamond,Boron,China Lake Naval Weapons Center and RidgecresT" ($27.67);"Encompasses all the central valley: Bakersfield, Lamont,Arvin, Frazier Park,Taft,Shafter, Wasco,McFarland and Deleano"($22.67); and"Encompasses Kernville,Tehachapi,Lake Isabella, Mohave,Monolith and Weldon"($25.67) 13. LOS ANGELES HVAC COMMERCIAL $29.40 Rate used represents the average of three rates given: (1)"SOUTH OF A STRAIGHT LINE DRAWN BETWEEN GORMAN AND BIG PINES,CALIFORNIA; EXCLUDING THE AREA SOUTH OF IMPERIAL HIGHWAY EAST OF THE LOS ANGELES RIVER, EXCLUDING THE CITIES OF LONG BEACH, CLAREMONT AND POMONA,AND EXCLUDING THE ISLAND OF CATALINA:Work on all new construction and remodel work except residential buildings and commercial buildings less than five thousand (5,000)square feet'($30.60);(2)"SOUTH OF IMPERIAL HWY.TO THE CITY OF LONG BEACH AND THE CITIES OF PONOMA AND CLAREMONT: Work on all commercial HVAC for creature comfort and computers clean rooms,architectural metals,metal roofing and lagging over insulation"($28.60);and(3) "AREA SOUTH OF IMPERIAL HIGHLY AND EAST OF THE 710 FREEWAY INCLUDING THE ENTIRE CITIES OF CLAREMONT,LONG BEACH AND POMONA:Work on all commercial HVAC for creature comfort and computer clean rooms,architectural metals,metal roofing and lagging,over insulation"($28.99). 14. LOS ANGELES HVAC RESIDENTIAL $26.58 Rate used represents the average of two rates given: LOS ANGELES COUNTY(south of a straight line drawn between Gorman and Big Pines,including the area south of Imperial Highway to the city limits of Long Beach,including the cities of Long Beach,Claremont,and Pomona,and the Island of Catalina): Installation and repair on all general sheet metal,heating and air conditioning,metal fireplace,and solar systems on single family dwellings,multiple family dwellings tract homes and apartment buildings individually conditioned by separate and independent units or systems($24.17)and"All Other Work"($28.99) 15, MADERA ELECTRICIAN RESIDENTIAL $17.80 Rate used represents the average of two rates given: "Construction,alteration,and/or repair of all units built solely for family residence,including mobile homes,single family residence,triplexes,quadruplexes and walkup garden type apartments or walkup condonimiums not to exceed two stories"($10.00)and"All Other Work"($25.60) Appendix D Additional Notes - Table of Instances where Average Davis-Bacon Rate was Calculated and Used The following determinations represent all instances when a single Davis-Bacon wage rate was not used, but an average of various given rates was instead used: Residential/ County Trade Commercial Rate Used Notes 16. MERCED ELECTRICIAN RESIDENTIAL $23.26 Rate used represents the average of two rates given: "Applies to construction,alteration,and/or repair of all units built solely for family residence,including mobile homes,single family residence,duplexes,triplexes, quadruplexes,condominiums apartmentsup to and including three(3)stories"($18.50)and"All Other Residential Construction"($28.02) 17. NAPA PLUMBER RESIDENTIAL $29.90 Rate represents average of two rates given: "Work performed on single family residential units, condominiums,townhouses,apartment houses and mobile homes for which the total plumbing bid does not exceed$250,000;or Any residential project bid in phases shall not qualify unless the total project is less than$250,000 for the Plumbing bid and$250,000 for the heating and cooling bid"($25.90)and"All other work"($33.90) 18. NEVADA ELECTRICIAN RESIDENTIAL $26.16 Rate used represents the average of two rates given: "Work on single family homes and apartments up to and including 3 stories"($20.10)and"All other residential work"($32.21) 19. NEVADA PLUMBER COMMERCIAL $25.45 Rate represents average of three rates given: "Lake Tahoe Area only"($23.95);"Excluding Lake Tahoe area (Light Commercial Work)"($21.43); and"Excluding Lake Tahoe area(All Other Work)"($30.97) 20. NEVADA PLUMBER RESIDENTIAL $19.04 Rate represents average of two rates given: "(Lake Tahoe basin only)"($16.65)and"(Does not include Lake Tahoe area)"($21.43) 21. ORANGE HVAC RESIDENTIAL $26.58 Rate used represents the average of two rates given:Installation and repair on all general sheet metal, heating and air conditioning,metal fireplace,and solar systems on single family dwellings,multiple family dwellings tract homes and apartment buildings individually conditioned by separate and independent units or systems($24.17)and"All Other Work"($28.99) 22. PLACER ELECTRICIAN RESIDENTIAL $26.16 Rate used represents the average of two rates given: "Work on single family homes and apartments up to and including 3 stories"($20.10)and"All other residential work"($32.21). Note also this is only for west of Main Sierra Mountains watershed. 23. PLACER PLUMBER COMMERCIAL $25.45 Rate represents average of three rates given: "Lake Tahoe Area only"($23.95);"Excluding Lake Tahoe area (Light Commercial Work)"($21.43); and"Excluding Lake Tahoe area(All Other Work)"($30.97) 24. PLACER PLUMBER RESIDENTIAL $19.04 Rate represents average of two rates given: "(Lake Tahoe basin only)"($16.65)and"(Does not include Lake Tahoe area)"($21.43) 25. RIVERSIDE HVAC RESIDENTIAL $26.58 Rate used represents the average of two rates given:Installation and repair on all general sheet metal, heating and air conditioning,metal fireplace,and solar systems on single family dwellings,multiple family dwellings tract homes and apartment buildings individually conditioned by separate and independent units or systems($24.17)and"All Other Work"($28.99) 26. SACRAMENTO ELECTRICIAN RESIDENTIAL $26.16 Rate used represents the average of two rates given: "Work on single family homes and apartments up to and including 3 stories"($20.10)and"All other residential work"($32.21). Appendix D Additional Notes - Table of Instances where Average Davis-Bacon Rate was Calculated and Used The following determinations represent all instances when a single Davis-Bacon wage rate was not used, but an average of various given rates was instead used: Residential/ County Trade Commercial Rate Used Notes 27. SAN BERNARDINO ELECTRICIAN RESIDENTIAL $23.11 Rate used represents the average of two rates given: "All single family dwellings and multi-family dwellings not exceeding eight units and/or two stories"($16.00)and"All other residential work"($27.25). 28. SAN BERNARDINO HVAC RESIDENTIAL $26.58 Rate used represents the average of two rates given:Installation and repair on all general sheet metal, heating and air conditioning,metal fireplace,and solar systems on single family dwellings,multiple family dwellings tract homes and apartment buildings individually conditioned by separate and independent units or systems($24.17)and"All Other Work"($28.99) 29. SAN BERNARDINO PLUMBER COMMERCIAL $31.46 Rate represents average of three rates given: "Fort Irwin Army Base,Marine Corps Logistic Base at Nebo, Marine Corps Logistic Base at Yermo and Twenty-Nine Palms Marine Base"($33.31);"George Air Force Base"($32.06);and'Remainder of County"($29.81). 30, SAN DIEGO ELECTRICIAN RESIDENTIAL $23.61 Rate used represents the average of two rates given: "Work on familiy residences,single family homes duplexes,condominiums,apartments that do not exceed three(3)stories"($17,00)and"All other residential and building construction"($30.21). 31, SAN DIEGO HVAC COMMERCIAL $26.90 Rate represents average of two rates given: Camp Pendleton($27,90)and'Remainder of County"($25.90). 32. ISAN DIEGO HVAC RESIDENTIAL $17.83 (Camp Pendleton and Remainder of County) 33. SAN DIEGO PLUMBER COMMERCIAL $30.94 Rate represents average of two rates given: "Camp Pendleton"($32.06)and'Remainder of County" ($29.81) 34. SAN FRANCISCO ELECTRICIAN RESIDENTIAL $36.44 Rate used represents the average of two rates given: "Work on residential wood frame remodel and repair in all wood-constructed buildings not to exceed 24 living units;and new wood frame single structure 1 or 2 family houses,or on all wood-constructed buildings not to exceed 20 living units under 1 roof excluding projects or tracts containing more than 2 houses,or more than 1 building"($27.33)and"All other work" ($45.55). 35. SAN MATEO HVAC COMMERCIAL $36.83 Rate represents average of two rates given: "Work with an HVAC contract price of$270,000 equipped with packaged units or a unitary system;Also,tenant completion work extending from an existing trunk line or air loop to registers and/or diffusers;Also,remodel or add-on contracts on existing facilities providing the contract price is$165,000 or less;Also,architectural sheet metal contracts of$100,000 or less;Also,pre- engineered and pre-manufactured siding"($35.10)and"All Other Work"($38.55). 36, SANTA BARBARA ELECTRICIAN RESIDENTIAL $19.49 Rate used represents the average of two rates given: "Vendenberg Air Force Base"($21.36)and "(Excluding Vendenberg Air Force Base)"($17.61). 37. SANTA BARBARA PLUMBER COMMERCIAL $30.49 Rate represents average of two rates given: "Vandenburg Air Force Base"($32.06)and'Remainder of County"($28.92) Appendix D Additional Notes - Table of Instances where Average Davis-Bacon Rate was Calculated and Used The following determinations represent all instances when a single Davis-Bacon wage rate was not used, but an average of various given rates was instead used: Residential/ County Trade Commercial Rate Used Notes 38. SANTA CLARA HVAC COMMERCIAL $37.65 Rate represents average of two rates given: "Work with an HVAC contract price of$270,000 equipped with packaged units or a unitary system;Also,tenant completion work extending from an existing trunk line or air loop to registers and/or diffusers;Also,remodel or add-on contracts on existing facilities providing the contract price is$165,000 or less;Also,architectural sheet metal contracts of$100,000 or less;Also pre- engineered and pre-manufactured siding"($36.54)and"All Other Work"($38.75) 39. SOLANO PLUMBER RESIDENTIAL $29.90 Rate represents average of two rates given: "Work performed on single family residential units, condominiums,townhouses,apartment houses and mobile homes for which the total plumbing bid does not exceed$250,000;or Any residential project bid in phases shall not qualify unless the total project is less than$250,000 for the Plumbing bid and$250,000 for the heating and cooling bid"($25.90)and"All other work"($33.90) 40, STANISLAUS ELECTRICIAN RESIDENTIAL $23.26 Rate used represents the average of two rates given: "Applies to construction,alteration, and/or repair of all units built solely for family residence,including mobile homes,single family residence,duplexes,triplexes, quadruplexes,condominiums apartmentsup to and including three(3)stories"($18.50)and"All Other Residential Construction"($28.02) 41. SUTTER ELECTRICIAN RESIDENTIAL $26.16 Rate used represents the average of two rates given: 'Work on single family homes and apartments up to and including 3 stories"($20.10)and"All other residential work"($32.21). 42, TULARE ELECTRICIAN RESIDENTIAL $17.80 Rate used represents the average of two rates given: "Construction,alteration, and/or repair of all units built solely for family residence,including mobile homes,single family residence,triplexes,quadruplexes and walkup garden type apartments or walkup condonimiums not to exceed two stories"($10.00)and"All Other Work"($25.60) 43, YOLO ELECTRICIAN RESIDENTIAL $26.16 Rate used represents the average of two rates given: 'Work on single family homes and apartments up to and including 3 stories"($20.10)and"All other residential work"($32,21). 44. YUBA ELECTRICIAN RESIDENTIAL $26.16 1 Rate used represents the average of two rates given: "Work on single family homes and apartments up to and including 3 stories"($20.10)and"All other residential work'($32.21). Appendix E Comparison of DIR Commercial Prevailing Wage Rates with EDD Market Rates Carpenter Drywall Installer Electrician HVAC/Sheet Metal Worker Plumber Percent Percent Percent Percent Percent DIR EDD by which DIR EDD by which DIR EDD by which DIR EDD by which DIR EDD by which Commercial Mean Market DIR rate is Commercial Mean Market DIR rate is Commercial Mean Market DIR rate is Commercial Mean Market DIR rate is Commercial Mean Market DIR rate is County Population PW Rate Wa a Rate Greater PW Rate Wage Rate Greater PW Rate Wage Rate Greater PW Rate Wage Rate Greater PW Rate Wage Rate Greater ALAMEDA 1,484,698 $29.75 $23.07 29% $29,75 $23.37 27% $37.00 $31,71 171/o $36.59 $17.02 115% $35.51 $25.71 38% ALPINE 1.210 $23.27 $18,86 23% $23.77 $18.01 32% $32.21 $24.76 30% $27.37 $16.52 66% $29.29 $20.35 44 AMADOR 36,049 $23.27 $18.86 23% $23,77 $18.01 32% $32.21 $24.76 30% $31.05 $16.52 88% $29.29 $20.35 44% BUTTE 207,310 $23.27 $16.73 39% $23.77 $17,29 37% $32.21 $20.20 59% $31.05 $17.33 79% $28.79 $16,25 77% CALAVERAS 41,820 $23.27 $18.86 23% $23.77 $18.01 32% $28.19 $24.76 14% $27.37 $16.52 66% $29.29 $20.35 44% COLUSA 19,341 $23.27 $21.11 10% $23.77 $15.08 58% $32.21 $18.32 76% $31.05 $16.91 84% $28.79 $19.18 50% CONTRA COSTA 980,870 $29.75 $23.07 29% $29.75 $23.37 27% $37.51 $31.71 18% $36,59 $17,02 115% $35.21 $25,71 37% DEL NORTE 27,694 $23.27 $18.84 24% $23.77 $14.75 61% $26,12 $23,96 9% $21.92 $20.48 7% $30.93 $18.74 . 65% ELDORADO 163,649 $23.27 $20.57 13% $23.77 $16.48 44% $32,21 $21,85 47% $31.05 $21.33 46% $29.40 $19.12 54% FRESNO 827.310 $23.27 $17.43 34% $23.77 $15.48 54% $27.10 $18.14 49% $24.80 $19.20 29% $28.79 $19.96 44% GLENN 26,747 $23.27 $21.11 10% $23.77 $15.08 58% $32.21 $18.32 76% $31.05 $16,91 84% $28.79 $19.18 50% HUMBOLDT 127,305 $23.27 $18.84 24% $23.77 $14.75 61% $26.12 $23.96 9% $21.92 $20.48 7% $30.93 $18.74 65% IMPERIAL 150.217 $29.00 $18.33 58% $29.00 $15.76 84% $29.00 $21.77 33% $25.90 $20.25 28% $29.81 $16.88 77% INVO 18.242 $28.43 $18.86 51% $29.00 $18.01 61% $36.35 $24,76 47% $24,76 $16.52 50% $28.17 $20.35 38% KERN 688,875 $28,43 $17.40 63% $29.00 $16.20 79% $28.84 $20.80 39% $24.76 $19.89 24% $28.17 $17.72 59% KINGS 133,553 $23.27 $22.26 5% $23.77 $23.24 2% $27.10 $21.02 29% $24.60 $15.55 59% $28.79 $18.29 57 LAKE 60,519 $23.27 $18.84 24% $23.77 $14.75 61% $32.13 $23.96 34% $38.05 $20.48 86% $41.00 $18.74 119% LASSEN 34,237 $23.27 $21,11 10% $23.77 $15.08 58% $32.21 $18.32 76% $31.05 $16.91 84% $28.79 $19.18 50% LOS ANGELES 9,817,419 $29.00 $21.04 38% $29.00 $18.63 56% $30.45 $20.22 51% $29.41 $20.58 43% $29.81 $19.69 51% MADERA 130,373 $23.27 $17.43 34% $23,77 $15.48 54% $27.10 $18.14 49% $24.80 $19.20 29% $28.79 $19.96 44% MARIN 248,490 $29.75 $26.63 12% $29,75 $26.24 13% $32.13 $30.78 4% $38,05 $21.17 80% $41.00 $28.95 42% MARIPOSA 17,087 $23.27 $18.86 23% $23.77 $18.01 32% $32.02 $24.76 29% $17.57 $16.52 6% $29.29 $20.35 44% MENDOCINO 87,552 $23.27 $18.84 24% $23.771 $14.75 61% $32.13 $23.96 34% $38.05 $20.48 86% $41.00 $18.74 1192 MERCED 219,554 $23.27 $16.27 43% $23.771 $19.32 23% $29.02 $20.68 40% $28.18 $15.72 79% $29.29 $17.74 65% MODOC 9,353 $23,27 $21.11 10% $2177 $15.08 58% $26.66 $18.32 46% $31.05 $16.91 84% $28.79 $19.18 50% MONO 13,247 $28.43 $18.86 51% $29.00 $18.01 61% $36.35 $24.76 47% $24.76 $16.52 50% $28.17 $20.35 381/. MONTEREY 409.608 $24.62 $21.61 14% $24.62 $26.06 -6% $33.01 $24.28 36% $30.78 $22.44 37% $31,89 $19 44 64 NAPA 128,132 $29.75 $22.93 30% $29.75 $19.72 51% $33.65 $34,86 -3% $38.05 $20.01 90% $33.901 $19,67 72% NEVADA 94,980 $23.27 $21.11 10% $23.77 $15.08 58% $32.21 $18.32 76% $31.05 $16.91 84% $29.401 $19.18 53% ORANGE 2,930,488 $29.00 $21.55 35% $29.00 $20.85 39% $31.10 $23.46 -33% $29.41 $21.40 37% $29.81 $19.29 551% PLACER 265.683 $23.27 $20.57 13% $23.77 $16.48 44% $32.21 $21.85 47% $31.05 $21.33 46% $29.40 $19.12 54% PLUMAS 20,964 $23.27 $21,11 10% $23,771 $15.08 58% $32,211 $18,32 76% $31,05 $16.91 84%' $28.79 $19.18 50% RIVERSIDE 1,645,319 $29.00 $18.17 60% $29.00 $19.49 49% $28.58 $22.01 30% $29.41 $18.05 63% $29.81 $15.84 88% SACRAMENTO 1,280.920 $23.27 $20.57 13% $23.77 $16.48 44% $32.21 $21.85 47% $31,05 $21.33 46% $30.97 $19.12 62% SAN BENITO 55,618 $24.62 $22,26 11% $24.62 $23.24 6% $33.01 $21.02 57% $30.78 $15.55 98% $45.51 $18.29 149% SAN BERNARDINO 1,788,479 $29.00 $18.17 60% $29.00 $19.49 49% $28.35 $22.01 29% $30.60 $18.05 70% $29.81 $15.84 881/. SAN DIEGO 2.908,505 $24.60 $17.87 38% $22.05 $17.84 24% $29.00 $20.72 40% $25.90 $18.63 39% $29.81 $20.00 49% SAN FRANCISCO 789,062 $29.75 $26.63 12% $29.75 $26.24 13% $45.55 $30.78 48% $37.05 $21.17 75% $41.00 $28.95 42% SAN JOAQUIN 596,907 $23.27 $20.92 11% $23,77 $18.85 26% $28.19 $22,26 27% $27.37 $17.90 53% $29.291 $21.00 39% SAN LUIS OBISPO 253,043 $29.00 $17.23 68% $29.00 $16.76 73% $27.25 $23.58 16% $27.28 $26.10 5% $29.81 $21.00 42% SAN MATED 714.414 $29.75 $26.63 12% $29.75 $26,24 13% $42.37 $30.78 38% $37.74 $21.17 78% $39.40 $28.95 36% SANTA BARBARA 406,176 $29.00 $22.70 28% $29.00 $18.48 57% $30.81 $23,96 29% $27.28 $20.50 33% $29.81 $24.22 23% SANTA CLARA 1,716,755 $29.75 $21,86 36% $29.75 $26.65 12% $42,57 $27.34 56% $37.94 $24.83 53% $45.51 $28.85 58% SANTA CRUZ 258.398 $24.62 $23.49 5% $24.62 $19,88 24% $33.01 $27.85 19% $32.32 $20.64 57% $31.89 $20,70 54% SHASTA 169,277 $23.27 $19.84 17% $23.77 $16.69 42% $32.21 $17.29 86% $31.05 $20.93 48% $28.79 $16.00 80% SIERRA 3.522 $23.27 $21.11 10% $23,77 $15.08 58% $32.21 $18.32 76% $31.05 $16.91 84% $28.79 $19.18 50% SISKIYOU 44.329 $23.27 $21.11 10% $23.77 $15.08 58% $26.66 $18.32 46% $31.05 $16.91 84% $28.79 $19.18 50% SOLANO 405,642 $29.75 $22.93 30% $29,75 $19.72 51% $33.65 $34.86 -30/ $38.05 $20.01 90% $33.90 $19,67 72% SONOMA 468,583 $29.75 $22.02 35% $29.75 $18.74 59% $32.13 $23.37 37% $38.05 $20.75 83% $41.00 $25.57 60% STANISLAUS 469,969 $23,27 $17.32 34%- $2337 $20,08 18% $29.02 $20.07 45% $28.18 $20.26 39% $29.29 $18.52 58% SUTTER 81.561 $23.27 $14.59 59% $23.77 $12.63 88% $32.21 $23.90 35% $31.05 $19,40 60% $28.79 $24.41 18% TEHAMA 56.911 $23.27 $21.11 10% $23.77 $15,08 58% $32.21 $18.32 76% $31.05 $16,91 84% $28.79 $19,18 50% TRINITY 13,059 $23.27 $21.11 10% $23.77 $15.08 58% $32.21 $18.32 76% $31.05 $16.91 84% $28.79 719.18 50% TULARE 378.477 $23.27 $16.14 44% $23.77 $20.90 14% $27.10 $16.86 61% $28.52 $18.91 51% $28.79 $18.69 54 TUOLUMNE 55.859 $23.27 $18.86 23%. $23.77 $18.01 32% $29.02 $24.76 17% $27.37 $16.52 66% $29.29 $20.35 44% VENTURA 778,423 $29,00 $17.76 63% $29.00 $22.59 28% $32,60 $23.01 42% $27.28 $21.19 29% $29.81 $17.85 67% YOLo 176,280 $23.27 $22.45 4% $23.77 $21.74 9% $32.21 N/A N/A $31.05 $18.58 '67% $30.97 $21.18 46% YUBA 61,763 $23.27 $14.59 59% $23.77 $12.63 88% $32.21 $23.90 35% $31.05 $19.40 60% $28.79 $24.41 18 Simple Average: 28% 43% 41% 61% 56% Po ulation Weighted Avg: 36% 41% 40% 53% 55 Sources: see Appendix D Appendix E Figure 2: California DIR Commercial Prevailing Wage Rates vs. EDD Market Rates for Drywall Installers (Percent by which DIR prevailing wage rate is greater than EDD market rate) -1'0% to 5% Greater 5 o to 20% Greater 20%to 35% Greater yv`Y 35% to 50% Greater 50% to 65% Greater 65% to 80% Greater 80% to 95% Greater SbMaC�- i EenYC � K� S- Appendix E Figure 3: California DIR Commercial Prevailing Wage Rates vs. EDD Market Rates for Electricians (Percent by which DIR prevailing wage rate is greater than EDD market rate) -5% to 10% Greater 10% to 25% Greater 25% to 40% Greater 40% to 55% Greater HM bd CK 55% to 70% Greater 70% to 85% Greater 85% to 100%Greater NIP, Sa aC Ilk, Appendix E Figure 4: California DIR Commercial Prevailing Wage Rates vs. EDD Market Rates for I-IVAC/Sheet Metal Worker (Percent by which DIR prevailing wage rate is greater than EDD market rate) 0% to 20% Greater 20% to 40% Greater 40% to 60% Greater x ?r° 60% to 80% Greater 's 80% to 100%Greater 100%to 120% Greater as Sa i 2 Appendix E Figure 5: California DIR Commercial Prevailing Wage Rates vs. EDD Market Rates for Plumbers (Percent by which DIR prevailing wage rate is greater than EDD market rate) 10% to 30% Greater F77T771 30% to 50% Greater 50%to 70% Greater 70%to 90% Greater 90%to 110% Greater 110% to 130% Greater 130% to 150% Greater Appendix F Table 1: Comparison of Davis-Bacon Commercial Prevailing Wage Rates with DIR Commercial Prevailing Wage Rates (Includes All Available Davis-Bacon Rates Regardless of Date of Last Update) Carpenter Drywall Installer Electrician HVAC/Sheet Metal Worker Plumber Percent Percent Percent Percent Percent Davis-Bacon DIR by which Davis-Bacon DIR by which Davis-Bacon DIR by which Davis-Bacon DIR by which Davis-Bacon DIR by which Commercial Commercial DIR rate is Commercial Commercial DIR rate is Commercial Commercial DIR rate is Commercial Commercial DIR rate is Commercial Commercial DIR rate is County Population PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater ALAMEDA 1,484,698 $29.75 $29.75 0% $29.75 $29.75 0% $37.00 $37.00 0% $34.56 $36.59 6% $35.51 $35.51 0% ALPINE 1,210 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $27.37 $27.37 0% $29.29 $29.29 0% AMADOR 36,049 $18.58 $23.27 251/ $18.14 $23.77 31% $16,30 $32.21 98% $18.37 $31.05 69% $20.88 $29.29 40% BUTTE 207,310 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.551 $31.05 -2% $28.79 $28.79 0% CALAVERAS 41,820 $23.27 $23.27 0% $23,77 $23.77 0% $28.19 $28.19 0% $27.37 $27.37 0% $29.29 $29.29 0% COLUSA 19,341 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2%- $28.79 $28.79 0 CONTRA COSTA 980,870 $29.75 $29.75 0% $29.75 $29.75 0% $37.51 $37.51 0%_ $34.56 $36.59 6% $35.21 $35.21 0 DEL NORTE 27,694 $19.08 $23.27 22% $19.08 $23.77 25% $17.41 $26.12 501% $18.65 $21.92 18% $16,47 $30.93 88% EL DORADO 163,049 $23.27 $23.27 0% $23.77 $2337 0% $32.21 $32.21 0% $31.55 $31.05 -2% $25.451 $29.40 16% FRESNO 827,310 $23.27 $23.27 0% $23.77 $23.77 0% $27.10 $27.10 0% $28.52 $24.80 -13% $28.79 $28.79 0% GLENN 26,747 $23,27 $23.27 0% $23.77 $23,77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $29,29 $28,79 -2% HUMBOLDT 127,305 $19.08 $23.27 22% $19.08 $23.77 25% $17.41 $26.12 50% $18,65 $21.92 18% $16.47 $30,93 887 IMPERIAL 150,217 $29.00 $29.00 0% $29.00 $29,00 0% $30.21 $29.00 -41/ $25.90 $25.90 0% $29.81 $29.81 0% INYO 18,242 $28.43 $28.43 0% $29.00 $29.00 0% $35.25 $36.35 3% $28.99 $24.76 -15% $27.67 $28.17 2% KERN 688.875 $28.43 $28.43 0% $29.00 $29.00 0% $29.34 $28.84 -2% $27.09 $24.76 -9% $25,34 $28.17 11% KINGS 133,553 $23,27 $23.27 0% $23.77 $23.77 0% $27.10 $27.10 0% $28.52 $24.80 -13% $28.79 $28.79 0% LAKE 60.519 $19.08 $23,27 22% $19.08 $23.77 25% $17.41 $32.13 85% $27.17 $38,05 40% $29.84 $41.00 37% LASSEN 34,237 $23.27 $23,27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $29.29 $28.79 -2% LOS ANGELES 9,817,419 $29.00 $29.00 0% $29.00 $29.00 0% $29.70 $30.45 3% $29.40 $29.41 0% $29.81 $29.81 0% MADERA 130,373 $23.27 $23.27 0% $23.77 $23.77 0% $27.10 $27.10 0% $28.52 $24.80 -13% $28.79 $28.79 0% MARIN 248,490 $29.75 $29.75 0% $29.75 $29.75 0% $32.13 $32.13 0% $38.86 $38.05 -2% $36.05 $41.00 14% MARIPOSA 17,087 $23.27 $23.27 0% $23.77 $23.77 0% $29.17 $32.02 10% $28.18 $17.57 -38% $29.29 $29.29 0% MENDOCINO 87,552 $19.08 $23.27 22% $19.08 $23.77 25% $17.41 $32.13 85% $27.17 $38.05 40% $29.84 $41.00 37% MERCED 219,554 $23.27 $23.27 0% $23.77 $23.77 0% $29.17 $29.02 _1% $28.18 $28.18 0% $29.29 $29.29 0% MODOC 9,353 $23.27 $23.27 0% $23.77 $23,77 0% $26.26 $26.66 2% $31.55 $31.05 -2% $28.79 $28.79 0% MONO 13,247 $28.43 $28,43 0% $29.00 $29.00 0% $35,25 $36.35 3% $28.99 $24.76 -15% $27.67 $28.17 2% MONTEREY 409,608 $24.62 $24.62 0% $24.62 $24.62 0% $32.01 $33.01 3% $31.41 $30.78 -2% $31.89 $31.89 0% NAPA 128,132 $29.75 $29.751 0% $29.75 $29.75 0% $30.65 $33,65 10% $38.86 $38.05 -2% $33.90 $33.90 0% NEVADA 94,980 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31,05 -2% $25.45 $29.40 16% ORANGE 2,930,488 $29.00 $29.00 0% $29,00 $29,00 0% $31,85 $31.10 -2% $28.99 $29.41 1% $29.81 $29.81 0% PLACER 265,683 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $25,45 $29.40 16% PLUMAS 20,964 $23.27 $23.27 0% $23.771 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $28.79 $28.79 0% RIVERSIDE 1.645,319 $29.00 $29.00 0% $29.00 $29.00 0% $29.23 $28.58 -2% $29.41 $29.41 0% $29.81 $29.81 0 SACRAMENTO 1,280,920 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32,21 0% $31.55 $31,05 -2% $30.971 $30,97 0% SAN BENITO 55.618 $24.62 $24.62 0% $24.62 $24.62 0% $32,011 $33.01 3% $31,41 $30.78 -2% $45.51 $45,51 0 SAN BERNARDINO 1,788,479 $29.00 $29,00 0% $29.00 $29.00 0% $28.251 $28.35 0%, $29.41 $30.60 4% $31.46 $29.81 -5% SAN DIEGO 2.908,505 $22.90 $24.60 7% $18.55 $22.05 19% $30.211 $29.00 4% $26.90 $25.90 4% $30.94 $29.81 4% SAN FRANCISCO 789,062 $29.75 $29.75 0% $29.75 $29.75 0% $45,551 $45,55 0% $37.09 $37.05 0% $41.00 $41.00 0% SAN JOAQUIN 596,907 $23.27 $23.27 0% $23.77 $23.77 0% $28,191 $28.19 0% $27.37 $27.37 0% $29.29 $29.29 0% SAN LUIS 05ISPo 253,043 $29.00 $29.00 0% $29.00 $29.00 0% $27.25 $27.25 0% $27.28 $27.28 0% $29.81 $29.81 0% SAN MATEO 714,414 $29.75 $29.75 0% $29.751 $29.75 0% $42.37 $42.37 0% $36.83 $37.74 2% $40,65 $39.40 -3% SANTA BARBARA 406,176 $29,00 $29.00 0% $29.001 $29.00 0% $30.83 $30.81 0% $27.28 $27.28 0% $30.49 $29.81 -2% SANTA CLARA 1,716,755 $29.75 $29,75 0% $29.751 $29.75 0% $42,57 $42.57 0% $37.65 $37,94 1% $45.51 $45.51 0% SANTA CRUZ 258,398 $24.62 $24.62 0% $24.62 $24.62 0% $32.01 $33.01 3% $32.95 $32.32 -2% $31.89 $31.89 0% SHASTA 169,277 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $28.79 $28.79 0% SIERRA 3.522 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $28.79 $28.79 0% SISKIYOU 44,329 $23.27 $23,27 0% $23.77 $23.77 0% $26,26 $26.66 2% $31.55 $31.05 -2% $28.79 $28.79 0% SOLANO 405,642 $29,75 $29.75 0% $29.75 $29.75 0% $30.65 $33,65 10% $38.86 $38.05 -2% $33.90 $33.90 0% SONOMA 468,583 $29.75 $29.75 0% $29,75 $29.75 0% $32,13 $32.13 0% $38.86 $38.05 .2% $36.05 $41.00 14% STANISLAUS 469,969 $23.27 $23.27 0% $23,77 $23.77 0% $29.17 $29.02 _1% $28,18 $28.18 0% $29,29 $29.29 0% SUTTER 81,561 $23.27 $23.27 0% $23,77 $23.77 0% $32,21 $32.21 0% $31.551 $31.05 -2% $28.79 $28.79 0% TEHAMA $6,911 $23,27. $23,27 0% $23.77 $23.77 0% $32,21 $32.21 0% $31.551 $31.05 -2% $29,29 $28,79 -2% TRINITY 13,059 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $22.34 $31.05 39% $28.79 $28.79 0% TULARE 378,477 $13.36 $23.27 74% $23.77 $23.77 0% $27.10 $27.10 0% $28.52 $28.52 0% $28.79 $28.79 0% TUOLUMNE 55,859 $23.27 $23.27 0% $23.77 $23.77 0% $29.17 $29.02 _1% $28.18 $27.37 -3% $29.29 $29.29 0% VENTURA 778,423 $29.00 $29,00 0% $29.00 $29.00 0%u $31.60 $32.60 3% $27.28 $27.28 0% $29.81 $29.81 0% POLO 176,286 $23.27 $23.27 0% $23.77 $23,77 07 $32,21 $32.21 0% $31.55 $31.05 -2% $30.97 $30.97 0% YUBA 1 61,763 $23.27 $23.27 0% $23.77 $23.77 0% $32.211 $32.21 0% $31.55 $31.05 -20/61 $28.79 $28.79 0% Simple Average: 58 counties 3% 58 counties 3% 58 counties 7% 58 counties 1% 58 counties 6% Population Weighted Avg: 100.0%of Pop.) 2% 100.0%of Po . 2% 100.0%of Po . 1% 100.0%of Po 0% 100.0%of Po 1% Sources: see Appendix 0. Appendix F Table 2: Comparison of Davis-Bacon Commercial Prevailing Wage Rates with DIR Commercial Prevailing Wage Rates (Includes Only Recent Davis-Bacon Rates,or Those Updated Since June 1,1999) Carpenter Drywall Installer Electrician HVAC/Sheet Metal Worker Plumber Percent Percent Percent Percent Percent Davis-Bacon DIR by which Davis-Bacon DIR by which Davis-Bacon DIR by which Davis-Bacon DIR by which Davis-Bacon DIR by which Commercial Commercial DIR rate is Commercial Commercial DIR rate is Commercial Commercial DIR rate is Commercial Commercial DIR rate is Commercial Commercial DIR rate is County Population PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater ALAMEDA 1,484,698 $29.75 $29.75 0% $29.75 $29.75 0% $37.00 $37.00 0% $34.56 $36.59 6% $35.51 $35.51 0% ALPINE 1,210 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $27.37 $27.37 0% $29.29 $29.29 0% AMADOR 36,049 Jul-85 N/A $23.27 N/A Jul-85 N/A $23.77 N/A Jul-85 NIA $32.21 N/A Jul-85 N/A $31.05 N/A Jul-85 N/A $29.29 N/A BUTTE 207,310 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $28.79 $28.79 0% CALAVERAS 41,820 $23.27 $23.27 0% $23.77 $23.77 0% $28.19 $28.19 0% $27.37 $27.37 0% $29.291 $29.29 0% COLUSA 19,341 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $28.79 $28.79 0% CONTRA COSTA 980,870 $29.75 $29.75 0% $29.75 $29.75 0% $37.51 $37.51 0% $34.56 $36.59 6% $35.21 $35.21 0% DEL NORTE 27,694 Jun-86 IN $23.27 N/A Jun-86 N/A $23.77 N/A Jun-86 N/A $26.12 N/A Jun-86 N/A $21.92 N/A Jun-86 N/A $30.93 N/A ELDORADO 163,649 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $25.45 $29.40 16 FRESNO 827,310 $23.27 $23.27 0% $23.77 $23.77 0% $27.10 $27.10 0% $28.52 $24.80 -13% $28.79 $28.79 0% GLENN 26,747 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 01/. $31.55 $31.05 -2% $29.29 $28.79 -2% HUMBOLDT 127,305 Jun-86 N/A $23.27 N/A (Jun-86)N/A $23.77 N/A Jun-86 N/A $26,12 N/A Jun-86)N/A $21.92 N/A Jun-86)N/A $30.93 N/A IMPERIAL 150,217 $29.00 $29,00 0% $29.00 $29.00 0% $30.21 $29,00 -4% $25.90 $25.90 0% $29.81 $29.81 00/0 INYO 18,242 $28.43 $28.43 0% $29.00 $29.00 0% $35.25 $36.35 3% $28.99 $24.76 -15% $27.67 $28.17 2% KERN 688,875 $28.43 $28.43 0% $29.00 $29,00 0% $29.34 $28.84 -2% $27.09 $24.76 -9% $25.34 $28.17 11% KINGS 133,553 $23.27 $23.27 0% $23.77 $23,77 0% $27.10 $27.10 0% $28,52 $24.80 -13% $28.79 $28.79 0% LAKE 60.519 Jun-86 N/A $23.27 N/A Jun-86 IN $23.77 N/A Jun-86 IN $32.13 N/A Jun-86)N!A $38.05 N/A Jun-86 N/A $41.00 N/A LASSEN 34.237 $23.27 $23.27 0% $23,77 $23.77 0% $32.21 $32.21 0% $31.55 $31,05 -2% $29.29 $28.79 -2% LOS ANGELES 9.817,419 $29.00 $29.00 0% $29.00 $29.00 0% $29.70 $30.45 3% $29,40 $29.41 0% $29.81 $29.81 0 MADERA 130.373 $23.27 $23.27 0% $23,771 $23.77 0% $27,10 $27.10 0% $28.52 $24.80 -13% $28.79 $28.79 0% MARIN 248,490 $29.75 $29.75 0% $29.75 $29.75 0% $32.13 $32.13 0% $38.86 $38.05 -2% $36.05 $41.00 14% MARIPOSA 17,087 $23.27 $23.27 0% $23.77 $23.77 0% $29.17 $32.02 10% $28.18 $17.57 -38% $29.29 $29.29 0% MENDOCINO 87.552 Jun-86 N/A $23,27 N/A Jun-86 IN $23.77 N/A Jun-86 IN $32.13 N/A Jun-86 N/A $38.05 N/A Jun-86 IN $41.00 N/A MERGED 219,554 $23.27 $23.27 0% $23.77 $23.77 0% $29.17 $29.02 -1% $28.18 $28.18 0% $29.29 $29.29 0% MODOC 9,353 $23.27 $23.27 01/. $23.77 $23.77 0% $26.26 $26.66 2% $31,55 $31.05 -2% $28.79 $28.79 0% MONO 13,247 $28.43 $28.43 0% $29.00 $29.00 0% $35.25 $36.35 3% $28.99 $24.76 -15% $27.67 $28.17 2% MONTEREY 409,608 $24.62 $24.62 0% $24.62 $24.62 0% $32.01 $33.01 3% $31.41 $30.78 -2% $31.89 $31,89 0% NAPA 128,132 $29.75 $29.75 0% $29.75 $29.75 0% $30,65 $33.65 10% $38.86 $38.05 -2% $33.90 $33.90 0% NEVADA 94,980 $23.27 $23.27 0% $23,77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $25,45 $29.40 16% ORANGE 2,930.488 $29.00 $29.00 0% $29.00 $29.00 0% $31.85 $31.10 -2% $28.99 $29.41 1% $29.81 $29.81 0% PLACER 265,683 $23.27 $23,27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $25.45 $29.40 16 PLUMAS 20,964 $23,27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $28.79 $28.79 0% RIVERSIDE 1,645,319 $29.00 $29.00 0% $29.00 $29.00 D% $29.23 $28.58 -2% $29,41 $29.41 0% $29.81 $29.81 0% SACRAMENTO 1,280,920 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 D% $31.55 $31.05 -2% $30,97 $30.97 0% SAN BENITO 55,618 $24.62 $24.62 0% $24.62 $24.62 0% $32.01 $33.01 3% $31.41 $30.78 -2% $45.51 $45.51 0% SAN BERNARDINO 1,788,479 $29.00 $29,00 0% $29.00 $29.00 D% $28.25 $28.35 - 0% $29.41 $30.60 4% $31,46 $29.81 -5% SAN DIEGO 2,908,505 $22.90 $24.60 7% $18.55 $22.05 19% $30.21 $29.00 -4% $26.90 $25.90 -41% $X94 $29.81 -4% SAN FRANCISCO 789,062 $29.75 $29.75 0% $29.75 $29.75 0% $45.55 $45.55 0% $37.09 $37.05 0% $41.00 $41.00 0% SAN JOAQUIN 596.907 $23.27 $23.27 0% $23.77 $23.77 0% $28.19 $28.19 0% $27.37 $27.37 0% $29.29 $29.29 0% SAN LUIS OBISPO 253,043 $29.00 $29.00 0% $29:00 $29.00 0% $27.25 $27.25 0% $27.28 $27.28 0% $29.81 $29.81 0% SAN MATEO 714,414 $29.75 $29.75 0% $29.75 $29.75 0% $42.37 $42.37 0% $36.83 $37.74 2% $40.65 $39.40 .3% SANTA BARBARA 406,176 $29.00 $29.00 0% $29.00 $29.00 0% $30,83 $30.81 0% $27,28 $27.28 0% $30.49 $29.81 -2% SANTA CLARA 1.716.755 $29.75 $29.75 0% $29.75 $29.75 0% $42,57 $42.57 0% $37.65 $37.94 1% $45.51 $45.51 0% SANTA CRUZ 258.398 $24.62 $24.62 0% $24.62 $24.62 0% $32.01 $33.01 3% $32.95 $32.32 -2% $31.89 $31.89 0% SHASTA 169,277 $23,27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $28.79 $28.79 0% SIERRA 3.522 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $28.79 $28,79 0% SISKIYOU 44.329 $23.27 $23.27 0% $23.77 $23.77 0% $26.26 $26.66 2%. $31.55 $31.05 -2% $28,79 $28.79 0% SOLANO 405,642 $29.75 $29,75 0% $29.75 $29.75 0% $30.65 $33.65 10% $38.86 $38.05 -2% $33.90 $33.90 0% SONOMA 468,583 $29.75 $29.75 0% $29.75 $29.75 0% $32,13 $32.13 0% $38.86 $38.05 -2% $36.05 $41.00 14% STANISLAUS 469,969 $23.27 $23.27 0% $23.77 $23,77 0% $29,17 $29.02 _1% $28.18 $28,18 0% $29.291 29,29 0 SUTTER 81,561 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31.55 $31.05 -2% $28.79 $28,79 0% TEHAMA 56,911 $23.27 $23.27 0% $23.77 $23.77 0°/ $32.21 $32.21 0% $31.55 $31.05 -2% $29.29 $28.79 -2% TRINITY 13,059 $23.27 $23.27 0% $23.77 $23.77 0% $32.21 $32,21 0% $22.34 $31.05 39% $28.79 $28.79 0% TULARE 378,477 Oct-84 N/A $23.27 NIA $23.77 $23.77 0% $27.10 $27.10 0% $28.52 $28.52 0% $28.79 $28.79 0% TUOLUMNE 55.659 $23.27 $23.27 0% $23.77 $23.77 0% $29.17 $29.02 _1% $28.18 $27,31 -3% $29.29 $29.29 0% VENTURA 778,423 $29.00 $29.00 0% $29.00 $29.00 0% $31.60 $32.60 3% $27.28 $27.28 0% $29.81 $29.81 0% POLO 176,280 $23,27 $23.27 0% $23.77 $23.77 0% $32.21 $32.21 0% $31 55 $31.05 -2% $30.97 $30.97 0% YUBA 61,763 $23.27 $23.27 0% $23.77 $23.77 0% $32.21T $32.211 0% $31,551 $31.05 -2% $28J9 $28.79 0% Sim le Avera e: 52 counties 0% 53 counties 0% 53 counties 1% 53 counties 2% 53 counties 1% Pi ulation Wei hted Av 97.9%of Po 1% 99.0%of Po 2% 99.0%of Po 0% 99.0%of Po 0% 99.0%of Po 0% Sources: see Appendix D Also,the filtered Davis-Bacon data above is denoted with an"N/A"and the date on which the data series were last updated Appendix G Table 1: Comparison of Davis-Bacon Commercial Prevailing Wage Rates with Davis-Bacon Residential Prevailing Wage Rates (Includes All Available Davis-Bacon Rates Regardless of Date of last Update) Carpenter Drywall Installer Electrician HVAC/Sheet Metal Worker Plumber Pct by which Pct by which Pct by which Pct by which Pct by which Davis-Bacon Davis-Bacon Commercial Davis-Bacon Davis-Bacon Commercial Davis-Bacon Davis-Bacon Commercial Davis-Bacon Davis-Bacon Commercial Davis-Bacon Davis-Bacon Commercial Residential Commercial Rate is Residential Commercial Rate is Residential Commercial Rate is Residential Commercial Rate is Residential Commercial Rate is County Population PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater ALAMEDA 1.484,698 $28.40 $29.75 5% $29.00 $29.75 3% $31.94 $37.00 16% $30.83 $34.56 12% $35.51 $35.51 0% ALPINE 1,210 $13.00 $23.27 79% N/A $23.77 N/A $12.67 $32.21 154% N/A $27.37 N/A $10.25 $29.29 186% AMADOR 1 36,049 $18.58 $18.58 0% $18.14 $18.14 0% $16.30 $16.30 0% $18.37 $18.37 0% $20.88 $20.88 0% BUTTE 207,310 $9.63 $23.27 142% $937 $23,77 143% $9,00 $32.21 258% $13.68 $31,55 131% $14.00 $28.79 106% CALAVERAS 41.820 $22.17 $23,27 5% $23.52 $23.77 1% $28.19 $28.19 0% $20,53 $27.37 33% $31.59 $29.29 -7% COLUSA 19.341 $11.30 $23.27 106% $16.33 $23,77 46% $9.89 $32.21 226% N/A $31.55 N/A N/A $28.79 N/A CONTRA COSTA 980,870 $28.40 $29.75 5% $29.00 $29.75 3% $35.01 $37.51 7% $30.83 $34.56 12% $27,41 $35.21 28% DEL NORTE 27.694 $19.08 $19.08 0% $19.08 $19.08 0% $17.41 $17,41 0% $18.65 $18.65 0% $16.47 $16.47 0% ELDORADO 163.649 $22.17 $23.27 5% $23.52 $23.77 1% $26A6 $32.21 23% $28.99 $31.55 9% $19.04 $25.45 34% FRESNO 827.310 $21.24 $23.27 10% $15.00 $23.77 58% $17.80 $27.10 52% N/A $28.52 N/A $11.50 $28.79 150% GLENN 26,747 $11.30 $23.27 106% $16.33 $23.77 46% $9.89 $32.21 226% N/A $31.55 N/A N/A $29.29 N/A HUMBOLDT 127,305 $19.08 $19.08 0% $19.08 $19.08 0% $17,41 $17.41 0% N/A $18.65 N/A $16.47 $16.47 0% IMPERIAL 150,217 $18.79 $29.00 54% $19:00 $29.00 53% $19.41 $30.21 56% $25.41 $25.90 2% $24.31 $29,81 23% INYO 18.242 $13.00 $28.43 119% $15.00 $29.00 93% $12.67 $35.25 178% N/A $28.99 N/A $10.00 $27.67 177% KERN 688,875 $21.24 $28.43 34% $15.00 $29.00 93% $29,34 $29.34 0% N/A $27,09 N/A $25,34 $25,34 0% KINGS 133,553 $6.38 $23.27 265% N/A $23,77 N/A $7.73 $27,10 251% $9.00 $28,52 217% $8.25 $28.79 249% LAKE 60,519 $7.76 $19.08 146% $7.47 $19.08 155% $7.47 $17.41 133% $6.32 $27.17 330% $7.47 $29.84 299% LASSEN 34,237 $9.86 $23.27 136% N/A $23.77 N/A $6.68 $32.21 382% $7.76 $31.55 307% $9.00 $29.29 225% LOS ANGELES 9,817,419 $18.79 $29,00 54% $19.00 $29.00 53% $16.15 $29.70 84% $26,58 $29.40 11% $24.31 $29.81 23% MADERA 130,373 $21.24 $23,27 10% $15.00 $23.77 58% $17.80 $27.10 52% N/A $28,52 N/A $11.50 $28.79 150% MARIN 248,490 $28.40 $29.75 5% $29.00 $29.75 3% $20.95 $32.13 53% $31.30 $38.86 24% $27,38 $36.05 32% MARIPOSA 17,087 $22.17 $23.27 5% $23.52 $23.77 1% $19,00 $29.17 54% $28.18 $28.18 0% $31.59 $29.29 -7% MENDOCINO 87,552 $7,76 $19.08 146% $7.47 $19.08 155% $7.47 $17.41 133% $6.32 $27.17 330% $7.47 $29.84 299% MERCED 219,554 $21.24 $23.27 10% $15,00 $23,77 58% $23.26 $29.17 25% N/A $28.18 N/A $11.50 $29.29 155% MODOC 9,353 $9.86 $23.27 1361/. N/A $23.77 N/A $6.68 $26,26 293% $7.76 $31.55 307% $9.00 $28.79 220 MONO 13.247 $13.00 $28.43 119% $15.00 $29.00 93% $12.67 $35.25 178% N/A $28.99 N/A $10.00 $27.67 177% MONTEREY 409.608 $23.52 $24.62 5% N/A $24.62 N/A $17.42 $32.01 84% $31.41 $31.41 0% $31.59 $31.89 1% NAPA 128.132 $28.40 $29.75 5% $29.00 $29.75 3% $18.50 $30.65 66% $31.30 $38,86 24% $29.90 $33.90 13% NEVADA 94.960 $22.17 $23.27 5% $23.52 $23.77 1% $26.16 $32,21 23% $28.99 $31.55 9% $19,04 $25.45 34% ORANGE 2,930,488 $18.79 $29.00 54% $19.00 $29.00 53% $20.00 $31.85 59% $26.58 $28.99 9% $24.31 $29.81 23 PLACER 265.683 $22.17 $23.27 5% $23.52 $23.77 1% $26.16 $32.21 23% $28.99 $31.55 9% $19.04 $25.45 34% PLUMAS 20,964 $11.57 $23,27 101% N/A $23.77 N/A $9.00 $32.21 258% N/A $31.55 N/A $14.00 $28.79 106% RIVERSIDE 1,645,319 $18.79 $29.00 54% $19,00 $29.00 53% $17.00 $29,23 72% $26.58 $29.41 11% $24.31 $29.81 23 SACRAMENTO 1,280,920 $22.17 $23.27 5% $23.52 $23.77 1% $26.16 $32,21 23% $28,99 $31.55 9% $21,43 $30.97 45% SAN BENITO 55,618 $23.52 $24.62 5% N/A $24.62 N/A $17.42 $32.01 84% $31.41 $31.41 0% $25.87 $45.51 76% SAN BERNARDINO 1,788.479 $18.79 $29.00 54% $19.00 $29.00 53% $23.11 $28.25 22% $26.58 $29.41 11% $24,31 $31.46 29% SAN DIEGO 2.908,505 $18.32 $22.90 25% $19.00 $18.55 -21% $23.61 $30.21 28% $17.83 $26.90 51% $24.31 $30,94 27% TAN FRA CCISCO 789,062 $28.40 $29.75 5% $29,00 $29.75 3% $36.44 $45.55 250/6 $33.94 $37.09 91% $27.38 $41,00 50% SAN JOAQUIN 596.907 $21.24 $23.27 10% $15.00 $23.77 '58% $28.19 $28.19 0% N/A $27.37 N/A $11.50 $29.29 1551/. SAN LUIS OBISPO 253,043 $18.79 $29.00 54% $19.00 $29,00 53% $17.60 $27.25 55% $27.28 $27.28 0% $24.31 $29.81 23% SAN MATEO 714,414 $28.40 $29.75 5% $29.00 $29.75 3% $42.37 $42.37 0% $33.14 $36,83 11% $40,65 $40.65 0% SANTA BARBARA 406,176 $18.79 $29.00 54% $19.00 $29.00 53% $19.49 $30.83 58% $27.28 $27.28 0% $24.31 $30.49 25% SANTA CLARA 1,716,755 $28.40 $29.75 5% $29.00 $29.75 3% $23.49 $42.57 81% $34.121 $37.65 10% $25.87 $45.51 76% SANTA CRUZ 258.398 $23.52 $24.62 5% N/A $24.62 N/A $17.42 $32.01 84% $32.95 $32.95 0% $31.59 $31.89 1% SHASTA 169,277 $9.91 $23.27 135% N/A $23.77 N/A $11.00 $32.21 193% $9.11 $31.55 2461A $10.00 $28.79 188% SIERRA 3.522 $8.50 $23.27 1740/6 $12.00 $23.77 981% $10.00 $32.21 222% $9,00 $31.55 2511% $7.00 $28.79 311 SISKIYOU 44.329 $9.91 $23.27 135% N/A $23.77 N/A $11.00 $26.26 139% $9.11 $31.55 246% $10.00 $28.79 188% BOLAND 405,642 $28.40 $29.75 5% $29.00 $29.75 3% $18.50 $30.65 66% $31.30 $38.86 24% $29.90 $33.90 13% SONOMA 468,583 $28.40 $29.75 5% $29.00 $29.75 3% $20.95 $32.13 53% $31.30 $38.86 24% $27.38 $36.05 32 STANISLAUS 469,969 $21.24 $23.27 10% $15.00 $23.77 58% $23.26 $29.17 25% N/A $28.18 N/A $11,50 $29.29 155% $UTTER 81,561 $22.17 $23.27 5% $23.52 $23.77 1% $26.16 $32.21 23% $28.99 $31.55 9% $31.59 $28.79 _9% TEHAMA 56.911 $8.56 $23.27 172% N/A $23.77 N/A $10.12 $32.21 218% N/A $31.55 N/A $9.67 $29.29 2030 TRINITY 13,059 $8,56 $23.27 172% N/A $23,77 N/A $10.12 $32.21 218% N/A $22.34 N/A $9.67 $28,79 198% TULARE 378,477 $21.24 $13.36 -37% $15.00 $23.77 58% $17.80 $27.10 52% N/A $28.52 N/A $11.50 $28.79 150% TUOLUMNE 55,859 $22.17 $23.27 5% $23.52 $23.77 1% $19.00 $29.17 54% $28.18 $28.18 0% $31.59 $29.29 -7% VENTURA 778,423 $18.79 $29.00 54% $19.00 $29.00 53% $31.60 $31.60 0% $27.28 $27.28 0% $24.31 $29.81 23 Yol.o n6,zeo $22.17 $23.27 5% $23.52 $23.77 1°/ $26.16 $32,21 23% $28.99 $31.55 9% $21.43 $30.97 45 VUBA 61,763 $22.17 $23.27 5% $23,52 $23.77 1% $2-6 $32,21 23% $28.99 $31.55 9% $31.59 $28,79 -9% Simple Average: 58 counties 52% 46 counties 38% 58 counties 89% 42 counties) 64% 56 counties 85 Population Weighted Avg: 100.0%of Po 36% 96.6%of Po 36% (100.0%0,Po 56% 89.7%of Po 19% 99.9%of Po 39% Sources: see Appendix D. Appendix G Table 2: Comparison of Davis-Bacon Commercial Prevailing Wage Rates with Davis-Bacon Residential Prevailing Wage Rates (Includes Only Recent Davis-Bacon Rates,or Those Updated Since June 1, 1999) Carpenter Drywall Installer Electrician HVAC/Sheet Metal Worker Plumber Pct by which Pct by which Pct by which Pct by which Pct by which Davis-Bacon Davis-Bacon Commercial Davis-Bacon Davis-Bacon Commercial Davis-Bacon Davis-Bacon Commercial Davis-Bacon Davis-Bacon Commercial Davis-Bacon Davis-Bacon Commercial Residential Commercial Rate is Residential Commercial Rate is Residential Commercial Rate is Residential Commercial Rate is Residential Commercial Rate is County Population PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater PW Rate PW Rate Greater ALAMEDA 1,484,698 $28.40 $29.75 5% $29.00 $29.75 3% $31.94 $37.00 16% $30.83 $34.56 12% $35,51 $35.51 0% ALPINE t210 (Jul-80)N/A $23.27 N/A N/A $23.77 N/A (Jul-80)NIA $32.21 N/A N/A $27.37 NIA Jul-80)N/A $29.29 N/A AMADOR 36,049 (Jul-85)N/A (Jul-85)N/A N/A (Jul-85 N/A (Jul-85)N/A N/A (Jul-85)N/A Jul-85)N/A N/A (Jul-85)N/A (Jul-85)N/A N/A (Jan-97)N/A (Jul-85)N/A N/A BUTTE 207,310 (Jan-88)N/A $23.27 N/A (Jan-88)N/A $23.77 N/A Jan-88)N/A $32,21 N/A (Jan-88)N/A $31,55 N/A (Jan-88)N/A $28.79 N/A CALAVERAS 41,820 $22.17 $23,27 5% $23,52 $23.77 1% $28.19 $28,19 0% $20,53 $27.37 33% $31.59 $29.29 -7% COLUSA 19,341 Jan-82 N/A $23.27 N/A Jan-82)N/A $23.77 N/A (Jan-82)N/A $32.21 N/A N/A $31.55 N/A N/A $28.79 N/A CONTRA COSTA 980, 770 $28.40 $29.75 5% $29.00 $29.75 3% $35.01 $37.51 7% $30.83 $34.56 12% $27,41 $35.21 28% DEL NORTE 27,694 Jun-86 N/A Jun-86 N/A N/A Jun-86 N/A Jun-86 N/A N/A Jun-86 N/A Jun-86 N/A N/A Jun-86 N/A Jun-86 N/A N/A Jun-86 N/A Jun-86 N/A N/A ELDORADO 163,649 $22.17 $23,27 5% $23.52 $23.77 1% $26,16 $32.21 23% $28.99 $31.55 9% $19.04 $25.45 34 FRESNO 827,310 $21.24 $23.27 10% $15.00 $23.77 58% Jun-98)N/A $27.10 N/A N/A $28.52 N/A $11.50 $28.79 150% GLENN 26747 Jan-82 NIA $23.27 N/A Jan-82 N/A $23.77 N/A (Jan-82)N/A $32.21 N/A N/A $31.55 N/A N/A $29.29 N/A HUMBOLDT 127,305 Jun-86 N/A Jun-86 N/A NIA Jun-86 N/A Jun-86)N/A N/A (Jun-86)N/A Jun-86)N/A N/A N/A (Jun-86)N/A N/A (Jun-86)N/A Jun-86)N/A N/A IMPERIAL 150,217 $18,79 $29.00 54% $19,00 $29,00 53% $19.41 $30.21 56% $25,41 $25.90 2% $24.31 $29.81 23% INYO 18,242 (Se -82)N/A $28.43 N/A Se -82 N/A $29.00 N/A Se -82)N/A $35.25 N/A N/A $28.99 N/A (Se -82)N/A $27.67 N/A KERN 688,875 $21,24 $28,43 34% $15.00 $29.00 93% $29.34 $29.34 0% N/A $27.09 N/A $25.34 $25.34 0% KINGS 133,553 Nov-82 N/A $23.27 N/A N/A $23.77 N/A Nov-82)N/A $27.10 N/A Nov-82)N/A $28.52 N/A (Nov-82)N/A $28.79 N/A LAKE 6o,51s Jan-78)IN Jun-86 N/A N/A (Jan-78)N/A Jun-86 N/A N/A Jan-78)N/A (Jun-86)N/A N/A Jan-78)N/A Jun-86)N/A N/A (Jan-78)N/A (Jun-86)NIA N/A LASSEN 34,237 A r-86 N/A $23.27 N/A N/A $23,77 N/A (A r-86)N/A $32.21 N/A A r-86)N/A $31.55 N/A (A r-86)N/A $29.29 N/A LOS ANGELES 9,817,419 $18.79 $29.00 54% $19.001 $29.00 53% $16.15 $29.70 84% $26.58 $29.40 11% $24,31 $29.81 23% MADERA 1 130,373 $21.24 $23.27 10% $15.00 $23.77_58% Jun-98)N/A $27.10 N/A N/A $28.52 N/A $11.50 $28.79 150% MARIN 248,490 $28,40 $29.75 5% $29,00 $29.75 3% $20.95 $32.13 53% $31.30 $38.86 24% $27.38 $36.05 32% MARIPOSA 17,087 $22.17 $23.27 5% $23.52 $23.77 1% $19.00 $29.17 54% $28.18 $28.18 0% $31.59 $29.29 -7% MENDOCINO 87,552 Jan-78 N/A Jun-86 N/A NIA Jan-78 N/A Jun-86 N/A N/A Jan-78 N/A Jun-86 NIA N/A Jan-78 N/A Jun-86 N/A N/A Jan-78 N/A Jun-86 IN N/A MERCED 219,554 $21.24 $23.27 10% $15.00 $23.77 58% $23.26 $29.17 25% NIA $28.18 N/A $11,50 $29.29 155% MODOC 9,353 A r-86)N/A $23.27 N/A N/A $23.77 N/A (A r-86 N/A $26.26 N/A (A r-86)N/A $31.55 N/A (A r-86)N/A $28.79 N/A MONO 13,247 Se -82)IN $28.43 N/A (Se -82 N/A $29.00 N/A (Se -82)N/A $35.25 N/A N/A $28.99 N/A (Se -82)N/A $27.67 N/A MONTEREY 409,608 $23,52 $24.62 5% N/A $24.62 N/A $17.42 $32.01 84% $31.41 $31 41 0% $31,59 $31.89 1% NAPA 128,132 $28.40 $29.75 5% $29.00 $29.75 3% $18.50 $30.65 66% $31.30 $38,86 24% $29,90 $33.90 13% NEVADA 94,980 $22.17 $23.27 5% $23,52 $23.77 1% $26.16 $32.21 23% $28,99 $31,55 9% $19.041 $25.45 34% ORANGE 2,930,488 $18.79 $29.00 54% $19.00 $29.00 53% $20.00 $31,85 59% $26.58 $28.99 9% $24,31 $29.81 23% PLACER 265,683 $22.17 $23.27 5% $23.52 $23.77 1% $26.16 $32.21 23% $28.99 $31.55 9% $19.04 $25.45 34% PLUMAS 20,964 A r-86)N/A $23.27 N/A N/A $23.77 N/A (Apr-86)NIA $32.21 N/A NIA $31.55 N/A (A r-66)N/A $28.79 N/A RIVERSIDE 1,645,319 $18.79 $29.00 54% $19.00 $29.00 53% $17.00 $29.23 72% $26.58 $29.41 11% $24.31 $29.81 23% SACRAMENTO 1,280,920 $22,17 $23.27 5% $23,52 $23.77 1% $26.16 $32.21 23% $28.99 $31.55 9% $21.43 $30.97 45% SAN BENITO 55,618 $23,52 $24.62 5% N/A $24.62 N/A $17.42 $32,01 84% $31.41 $31.41 0% $25.87 $45.51 76% SAN BERNARDINO 1,788,479 $18.79 $29.00 54% $19.00 $29.00 531/. (Jun-98)N/A $28.25 N/A $26.58 $29,41 11% $24.31 $31A6 29% SAN DIEGO 2,908,505 $18.32 $22.90 25% $19.00 $18.55 -2% $23.61 $30.21 28% $17.83 $26,90 51% $24.31 $30.94 27 SAN FRANCISCO 1 789.062 $28.40 $29,75 5% $29.00 $29.75 3% $36.44 $45.55 25% $33,94 $37.09 9% $27.381 $41.00 50% SAN JOAQUIN 1 596.907 $21.24 $23.27 10% $15.00 $23.77 58% $28.19 $28.19 0% N/A $27.37 N/A $11,50 $29,29 155% SAN LUIS OBISPO 253,043 $18.79 $29.00 54% $19.00 $29.00 53% $17,60 $27.25 55% $27.28 $27.28 0% $24,31 $29.81 23% SAN MATEO 714,414 $28.40 $29,75 5% $29.00 $29,75 31% $42,37 $42.37 0% $33.14 $36.83 11% $40.65 $40.65 0% SANTA BARBARA 406,176 $18.79 $29.00 54% $19,00 $29,00 53% $19.49 $30.83 58% $27.28 $27.28 0% $24,31 $30.49 25% SANTA CLARA 1,716,755 $28.40 $29.75 5% $29,00 $29.75 3% $23.49 $42.57 81% $34.12 $37.65 10% $25.87 $45.51 76 SANTA CRUZ 258,398 $23.52 $24.62 5% N/A $24.62 NIA $17.42 $32.01 84% $32,95 $32.95 0% $31,59 $31.89 1% SHASTA 169,27 Mar-86 N/A $23.27 N/A N/A $23.77 N/A Mar-86 N/A $32.21 N/A Mar-86 N/A $31.55 N/A Mar-86 N/A $28.79 N/A SIERRA 3522 Jan-82)N/A $23.27 N/A Jan-82)N/A $23.77 N/A (Jan-82)N/A $32,21 N/A (Jan-82)N/A $31.55 N/A (Jan-82)N/A $28.79 N/A SISKIYOU 44,329 Mar-86)N/A $23.27 N/A N/A $23.77 N/A (Mar-86)N/A $26.26 N/A (Mar-86)N/A $31.55 N/A Mar-86)N/A $28,79 N/A SOLANO 405,642 $28,40 $29.75 5% $29.00 $29.75 3% $18,50 $30.65 66% $31,30 $38.86 24% $29.90 $33,90 13% SONOMA 468,583 $28.40 $29.75 5% $29.00 $29,75 3% $20.95 $32.13 53% $31.30 $38.86 24% $27.38 $36.05 32% STANISLAUS 469,969 $21.24 $23,27 10% $15.00 $23.77 58% $23.26 $29,17 25% N/A $2818 N/A $11.50 $29.29 155% SUTTER 81561 $22.17 $23.27 5% $23,52 $23.77 1% $26.16 $32.21 _ 23% $28.99 $31.55 9% $31.59 $28.79 -9% TEHAMA 56,911 A r-86)N/A $23.27 N/A N/A $23.77 N/A (A r-86)N/A $32.21 N/A N/A $31.55 N/A A r-86)N/A $29.29 N/A TRINITY 13,059 A r-86 N/A $23.27 N/A N/A $23.77 N/A A r-86 N/A $32,21 N/A N/A $22.34 N/A A r-86 N/A $28,79 N/A TULARE 378,477 $21,24 Oct-84)N/A N/A $15.00 $23.77 58% Jun-98)NIA $27.10 N/A N/A $28.52 N/A $11.50 $28.79 150% TUOLUMNE 55,859 $22.17 $23.27 5% $23.52 $23,77 1% $19,00 $29.t7 54% $28.18 $28.18 0% $31,59 $29.29 -7% VENTURA 778,423 $18,79 $29.00 54% $19.00 $29.00 53% $31.60 $31.60 0% $27.28 $27.28 0% $24.31 $29.81 23% YOLO 176,260 $22,17 $23.27 5% $23.52 $23.77 11% $26.16 $32.21 23% $28.99 $31.55 9% $21.431 $30.97 45% YUBA 61,7631 $22.17 $23.27 5% $23.52 $23,77 -1% $26.16 - $32.21 23% $28.99 $31,55 9% - $31.59 $28.79 -9 Sim le Average: 37 counties 11% 35 counties 26% 34 counties 40% 31 counties 11% 38 counties 42% Po ulation Weighted Avg: 95.7%of Po 34% 94.8%of Po 35% 87.9%of Po 53% 87.4%of Po 14% 96.8%of Po 36% Sources: see Appendix D. Also,the filtered Davis-Bacon data above is denoted with an"NIA"and the date on which the data series were last updated. AGENDA - Thursday., Feb. 1 City Hall, - . Roll Call: Jerry Pame, Ralph Sauer, Mark Bixby, Patrick Brenden. Shirley Qettloff. Dick Marlow, Gregory Hartnett, Marijo Johnson, Gary Ijutscher, Joe Shaw, Ray Silver, Sharie Snddon, Tim Stuart, Dave Sullivan, Shane Whiteside IL public Comments: An opportunity for the public to comment on any item of interest, either in general or specific to this agenda, that is within the subject matter or jurisdiction of the Commission. Comments will be limited to no more than 3 minutes. n writing. Each Commission Member will receive a cool of all the submitted comments. III. Approval of the Commission minutes from February 2 meeting. IV. Charter Section 302—Compensation The Commission has not made a final determination on amending the Council Compensation section of the Charter. Additional information was requested. V. Charter Section 313—Conflict of Interest A Commissioner request had been made and never resolved on adding language to prohibit elected officials from participating in labor negotiations. L Staff Presentation on Charter Section 612—Measure C ll. Charter Section 612 -The Commission has requested that staff return for the following on Measure C • Optional language for including the City Council action taken on July 11, 1994 (currently at the end of the Charter index) into Section 612 of the Charter • Optional language for exempting from a Measure C vote repair, replacement, and/or maintenance of sewer, water, water quality, and storm drain facilities • Optional language and a rationale for exempting from a Measure C vote underground city structures • Recommendations for an appropriate monetary minimum for a measure C vote with options for indexing that amount • Wording for a Commission recommendation to the City Council for requiring notification of residents in the surrounding area when a project below the Measure C threshold is planned for a city park or beach. Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. Charter Review Agenda—02/18/10 Page 2 Vill. Charter Section 614—Contracts—The City Attorney is to provide feedback on potential issues with requiring a local preference on city contracts. X. Charter Section 703 -The Commission has requested that staff return with optional language for changing the number of signatures required to place a citizen initiative on the ballot X. Commissioner Requests: Questions, comments, or suggestions for discussion at a subsequent meeting of the Commission XI. Adjourn to the next regular meeting scheduled for Tuesday Mar 2 at 6 PM in City Hall Room, B 8 Attachments: 1, Minutes from the February 2 meeting 2. Staff report on Section 302 — Compensation 3. Requested language on Section 612 (Measure C) 4. Information from Commissioner Bixby 5. Updated Timeline ATTACHMENT # 1 f { ACTION MINUTES Tuesday., 1 , 6:00 PM 1. Poll Call: Jerry Same, Ralph Bauer, Mark Sixb , Patrick Brenden, Shirley Dettloff, Dick Harlow, Gregory Hartnett, Marijo Johnson, Cary Kutscher, Joe Shaw, Pay Silver, Shrie Sneddon, Tim Stuart, Dave Sullivan, Shane Whiteside All present except Bame and Stuart. Brenden, Johnson, and Sullivan arrived after calling of the roll. lla Public Comments: An opportunity for the public to comment on any item of interest; either in general or specific to this agenda, that is within the subject matter or jurisdiction of the Commission. Comments will be limited to no more than 3 minutes, Speakers are encouraraed to submit their comments in writin€ . Each Commission Member will receive a copy of all the submitted comments. Jim Adams requested that the Commission add language to the Charter requiring the use of the prevailing wage on construction projects. Ill. Approval of the Commission minutes from January 5 and January 21. Commissioner Whiteside offered a correction to the Minutes from Jan. 5. A motion by Commissioner Sullivan was corrected to read: Commissioner Sullivan made a motion to place before the voters repealing this section [Section 607(b) 21 of the City Charter. The motion was seconded by Commissioner Silver. Following a presentation by Commissioner Silver, the motion was amended to add that it should not take effect until July of 2012. The motion carried 10-4-1 (Bixby, Shaw, Johnson, & Dettloff No) The minutes for Jan. 5 were approved as amended, the minutes for Jan. 21 were approved as submitted. (13-0-2) IV. Staff Presentation on Charter Sections 614 Contracts— Public Works and Section 617 Infrastructure Funds Public Works Director, Travis Hopkins, requested that the Commission consider amending the Section 614 of the Charter to increase the threshold for requiring a bid process on public works contracts. V. Discussion and possible action on City Charter Section: m 61 — Execution of Contracts i 614—Contracts on Public Works including a. Increasing or Eliminating threshold for triggering a bid process & possibly indexing that amount Following some discussion, a motion was made by Commissioner Shaw and seconded by Commissioner Bauer to change the charter to allow the threshold for requiring a bid process on Public Works contracts to be set by ordinance. The motion carried 13-0-2 * Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. Charter Review Commission Action Minutes—02-02-2010 Page 2 b. The addition of the financial viability of the bidders c. Discussion on a request to add a prevailing wage requirement 0 617— Infrastructure Fund including discussion on: a. The requirement that expenditures for infrastructure improvements and maintenance not be less than 15% of the general fund revenues Public Works Commission Chair, John McGovern, made a presentation on the 15% infrastructure set aside. The Public Works Commission is concerned about the way the city calculates the 15% and those items that are currently included in the 15%. Following substantial discussion action on this section was postponed until the Feb. 18 meeting so that the City Attorney could provide a opinion on whether the city is currently in compliance with this section of the Charter. Commissioner Shaw made a motion to add to the Charter the following language: The provisions of California Labor Code Section 1779 et seq. regarding prevailing wages on public works and related regulations, as now existing and a may be amended, are accepted and made applicable to the City, its departments, boards, officer, agents and employees. The motion was seconded by Commissioner Dettloff. Follow substantial discussion, the motion failed 4-9-2 (Bixby, Dettloff, Shaw, Hartnett-Yes) Commissioner Bauer asked that a requirement be added to Section 613 of the Charter for checking the financial viability of the selected bidder before issuing a public works contract. Staff described the current process required for determining financial viability bidder. No motion was made. Commissioner Bixby made a motion to modify Section.614 to allow a local preference when consider bids on Public Works contracts. The motion was seconded by Commissioner Shaw. Following some discussion the motion was amended to ask the City Attorney to provide an opinion on whether current law allows a local preference and how that would be integrated with the current requirement that the bid go to the lowest responsible bidder. The motion carried 10-3-2 (Silver, Bauer, Dettloff—No) Commissioner Bixby made a motion to add a language to the Charter to create greater public oversight over city contracts by requiring contract of a duration of 10 years to be approved by ordinance subject to a referendum and requiring contracts greater than twenty-five years to be approved by a majority of the electors of the city. Staff reported that contracts with the city were seldom over three years in duration, and the only contracts that would surpass the twenty-five year threshold would be franchise agreement. Commissioner Bixby withdrew his motion. b. Citizen Infrastructure Advisory Board No action taken. VI. Discussion and possible action on the Charter Review Commission Timeline/Schedule — Dapkus Included in the agenda packet was an updated schedule. The next meeting will be used to reconsider items deferred for further staff input. March 2 the Commission will be considering legislative drafts of the amended sections of the Charter. The goal is to take a final vote on the amended Charter as a whole at the Commission's first meeting in April. Material Related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the Agenda Packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. Charter Review Commission Action Minutes—02-02-2010 Page 3 Vii. Distribution and possible discussion on legislative drafts of some of the Charter Sections on which the Commission has taken straw votes— McGrath City Attorney McGrath explained what the material covered. No action was taken on this item. Mill. Commissioner Requests: Questions, comments, or suggestions for discussion at a subsequent meeting of the Commission Request by Commission Chair Harlow to reconsider the straw vote taken on Charter Section 607(b) 2 - Retirement Tax A motion was made by Commissioner Harlow and seconded by Commissioner Johnson for the Commission to reconsider the action they took on Charter Section 607(b)2—Retirement Tax. Commissioner Harlow express his concerned that staff had not had an adequate opportunity to respond to the issues raised at the Jan. 5 meeting. A presentation on the potential impact of eliminating this section was made by the City's Finance Director, Bob Wingenroth. Facilitator Sonenshein expressed his concerns that the action taken. The motion to reconsider carried 9-4-2 (Brenden, Whiteside, Silver, Sullivan — No) A second motion was made by Commissioner Harlow, seconded by Commissioner Johnson to leave Charter Section 607(b)2 in the Charter. The motion carried 8-5-2 (Brenden,Whiteside, Kutscher, Silver, Sullivan— No) IX. Adjourn to the next regular meeting scheduled for THURSDAY, Feb. 18 at 6 PM in City Hall Room, B 8 1. Memo from City Attorney McGrath & Legislative Drafts of Charter Section 308,6061. 607.608, 610, & 611 2. Information from Commissioner Bixby on amendments to City Charter on contracting and on the prevailing wage 3. PLEASE also refer to information from the Jan. 21 meeting regarding prevailing wage available on the city's website under at: Material Related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the Agenda Packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. r� SUMMARY OF CITY COUNCIL COMPENSATION Section 302 of the City Charter sets City Council Compensation as follows: Section 302. - Compensation. The members of the City Council including the Mayor shall receive as compensation for their services as such a monthly salary in the sum of One Hundred Seventy-five Dollars per month. In addition, each member of the City Council shall receive reimbursement on order of the City Council for Council authorized traveling and other expenses when on official duty upon submission of itemized expense accounts therefor. In addition, members shall receive such reasonable and adequate amounts as may be established by ordinance, which amounts shall be deemed to be reimbursement to them of other routine and ordinary expenses, losses and costs imposed upon them by virtue of their serving as City Councilmen. In May of 1989 the City Council adopted Section 2.28 of the Municipal Code. It set an expense allowance for the City Council at $698 per month with the Mayor to receive $936 a month. Both of these amounts were to be indexed to the Consumer Price Index (CPI). IVIC 2.28.010 Expense allowance. It is deemed reasonable and adequate that in reimbursement of the ordinary and routine expenses, losses and costs imposed upon them by virtue of their serving the city in their official capacity, each Council Member shall receive monthly, during his term of office the sum of$698 per month, and the mayor shall receive the sum of$936 per month, such sums to be adjusted annually by the consumer price index for all urban consumers, all items, 1982-84 equals 100, published by the United States Department of Labor, Bureau of Labor Statistics, for the Los Angeles/Anaheim/ Riverside Metropolitan Area. Further, such expense allowance need not be accounted for by the recipient. in addition thereto, each member of the City Council, including the mayor, shall be reimbursed pursuant to the city's business expense policy for council authorized travel and other expenses when on official.duty upon submission of itemized expense account therefor. This section is intended to meet the requirements of section 302 of the city Charter. Appropriations for the allowance and other expenses provided for herein shall be included in the annual budget approved by the City Council. (1346-9/67, 2079-8/76, 2566-8/82, 2997-5/89) Since the adoption of Municipal Code 2.28 there have been a number of years where the City Council waved the right to increase their expense allowance. Last year, because of budget concerns, the City Council actually approved a 10% reduction in the amount they would have received during the 2009110 Fiscal Year. The current monthly compensation for each Council Member is about $1221.72, and the Mayor receives about$1,709.54 a month. In addition to the above,the Mayor and Council Members are eligible to receive health benefits similar to those received by city department heads. MC2.28.020 Fringe benefits. Each member of the City Council,shall receive all fringe benefits which are granted, and in the future shall be granted, to the department heads of the city of Huntington Beach, and the cost of such fringe benefits shall be included in the annual budget. (2079-8/76) COMPENSATION IN OTHER CITY CHARTERS Anaheim The members of the City Council, including the Mayor, shall receive as compensation for their services as such a monthly salary in such amount as established in accordance with, and limited by, the provisions of law applicable to the salaries of City Council members in general law cities as set forth in Section 36516 of the Government Code of the State of California or any successor provision thereto. In addition, each member of the City Council shall receive reimbursement on order of the City Council for Council authorized traveling and other expenses when on official duty. In addition, members shall receive reimbursement for itemized routine and ordinary expenses incurred in official duty or such reasonable and Last Revised 4/30/2007 Page 8.adequate amount as may be established by ordinance,which amount shall be deemed to be reimbursement to them of routine and ordinary expenses imposed upon them by virtue of their service as members of the City Council. (Amended March 5, 1991, filed by Secretary of State April 18, 1991.) Carlsae� Council Gompegsattanr Fm? ? � (1) Fte compensati on of each merrrber of°the counc P !]be se t owe tte0tisa #ht 4" e hundred and e hty-non Rio{{ars4pe� rn ntt'upon tyre et= 66V date f this dre3� arty��d"i9t t� t�#s'to crty cruncal carrtpt r�satron may:,be Made frt�rn tirr *to'ftrte byldrrrc erre�an 'tFtr�s Ntr s ( 1 �T€ie cornfiensatronfi�establrs ed y thrs=sect a clus re f any c antl e to�ea h a em ber of the c ty counerl is re rribursement for a tual and r eces�ar�t e � � s t cUrre n the a; orrnanoe ofi officral dunes#or the cafyr r 3 � 07 rs ° y Elected-mayor Additional compens'atton the me�r,electedn t�r�ua t e�r� to ARN�34904 rrrcclusrve of the Gavernrrient Cone, hal(rece ad dollars per month rn addrtron to fhescornpensafFon her ee� e �eba r, the3: co � s adelrtrori`al ccimsatron rraa tie�errdedf"Krrorrr tme` brire' the adoptron of art cr` � a end�ncrah#s secygn a Coronado Each Councilmember shall be entitled to a salary in the amount of$435.00 per month (effective November 1996).The Mayor shall be entitled to a salary in the amount of$435.00 per month (effective November 1996). In addition to reimbursement on demand and consistent with existing policies for extraordinary expenses and out-of-county expenses actually and necessarily incurred in the performance of official duties, the Mayor shall receive a monthly expense allowance of$150.00&the Council $75.00 for the normal expenses actually and necessarily incurred in the performance of their official duties within San Diego County. � Effectrtire o the sate the ci council member�to die erected a th ; r u ar otntei ele o �scondrd® gar s a :into office ithe merrrkiers of the crty of i eif"�hatl fs ry rric�r r�lary o ora tkl s d' twt hundred fif#�r dive dQltars and twenty five cets{$ 55 $��rxiilt �cco danceCAW ;.: proVtsr rss of Section if of ttre$Go e rr e e lit a ! t� i�it d d fir counCrt r m I strbsect►on(a)of this sect)on,the�ra r th���� a rt xecer e a r, th� lary'of one theusancl six hundred dollars( I,it3€f OG}),art accorn :yrrr xi �ott` . 651"6. of the Calrfeii naa 61, C Tie sel prt� d d shell r perce the-same ntage set ortwir an ordr�na edo�ed for� norf Huntington Beach The members of the City Council including the Mayor shall receive as compensation for their services as such a monthly salary in the sum of One Hundred Seventy-five Dollars per month. In addition, each member of the City Council shall receive reimbursement on order of the City Council for Council authorized traveling and other expenses when on official duty upon submission of itemized expense accounts therefor. In addition, members shall receive such reasonable and adequate amounts as may be established by ordinance,which amounts shall be deemed to be reimbursement to them of other routine and ordinary expenses, losses and costs imposed upon them by virtue of their serving as City Councilmen. LINK TO THE CALIFORNIA GOVERNMENT CODE : http:// .leginfo.ca.gov/cgi-bin/calawguery?codesection=ciov&codebody=&hits=20 2/11/10 1 loil�: 2, }n the sae oflective%ffcers ho +ever,�astnctiis �tleortsi xa ftftfV �a relating tt�"the corripensation of eli dive officers steal be o served Say cil rn also by iorc roan&provide for anyoaho all such the and additional s S � officers assistants dep ties,cl rks and employees;a s[�htcouu i ra , fio�tira�e fo trtae hereafter"deem necessary,ancf fry their respective pourers;d # s�ic,�e�saor�sTh codnc may appoint any person#�more than oae fce or appoirtrrienf,prcvide�saidcouncit does not x deem the duties of such gfficer :oapntts'to be in conflict or eiodf f by ones person ta'be corit�ary to good pibc pclrcy if an eteitrye ►fFice�of catty un erne aunty hertn giv"en other than the mayor or councrlmen,�3aApoined try ltvl ap €it e � reti herein or'createc!by ociiriance as herein prided, a shad be en�tled re�tv�asiic;l 7 appointive officer the salary or edmper►satrOn attach duo such appi ti ltt� �i�addifiror i without regard to his salary or Op ensation as'an ective r%fficiati pr vrdei tne,€tiifies bf su h appointive office f not suph a001 would reasoi abay be required its pert irr%►as Stich eltwctive offc al Irvine Compensation for Council member is hereby set, and from time to time shall be changed, in accordance with the provisions of the Government Code relating to salaries of Council members in general law cities. Such compensation may be increased or decreased other than as set forth above by an affirmative vote of a majority of the voters voting on the proposition at any election. LOng Beach Salary. ka $ 10 y, x. a (a) Commencing with tFte fast ttayor to assume the"offa�e rif ayor n Or;ft r,l by 1, t988i tli : 1 p - '.. ' Mays�r shall receive anannuat salaryrfSiaa tysewer'�TnouFsaidl=ive utdtdla s�$ ; i which saint snail be automaticalt�adf tell on,tity ; 198a € - ulr ©feachyea�r eafter e trivalent-to the most recent it wrdca e theartnual vera f P ertd� s m published by the United States Departrnen al)oar tote Los Angete riBeah nae� �metrOpolitan area A I h t Fur purpo$ies,of c alc�..rfati-rg the a uat d�s tit lei thi sear t �p ha ` � �yearending withbthe gbater,e i @ecember 3U i1988 ����'' talrs "aai �o Jttiy,l, 998g and annuall � e #ter,basa tin tfi�aririil tyal change fropi the base i ze ? p a' - y �- ' �r I v� � Jk, s�{li Each;mhi ember of the iCitys nral shaft receive a salt �ihsl � � v ercent of - dA �p L iletthat rovided for the Ma or un er ubsecbon"a of,this Orange 2.08.020 Increase in Salaries. A. Upon certification of population increase by the State Department of Finance that the population of the City has increased in an amount which authorizes an increase in salaries, the City Council shall consider the effect of such population increase and shall determine whether to increase salaries of Councilmen to the extent permitted by any formula established by state law. B. Notwithstanding any Council compensation formula contained in the provisions of 36516 of the California Government Code or other State law, the Council hereby determines to study from time to time the compensation of Council members and shall from time to time determine whether to adjust the compensation of Council members to the extent authorized by State Law. C. In accordance with the authority of Subsection (C)of 36516 of the California Government Code, the City Council authorizes the compensation of Council members to be increased from its present level of$600 per month to$690 per month. D. Each member of the City Council shall receive the sum of$690 a month. This salary is payable beginning January 27, 1989, and is payable at the same time and in the same manner as the salaries paid to each of the officers and employees of the City. E. Salaries exclusive of reimbursement. The salaries prescribed by this chapter are exclusive of, and in addition to, any other amount payable to a member of the Council as reimbursement for actual and necessary expenses incurred by him in the performance of his official duties. (Ords. 44- 88; 41-85;41-84) 2.08.030 Compensation. A. Each member of the Orange Redevelopment Agency shall receive the sum of$120.00 a month, based on attendance at four meetings of the Agency each month. The salary shall be charged to the Redevelopment Agency as follows: 20%to Fund 910; 40%to Fund 920; and 40%to Fund 930. This compensation shall be payable beginning October 13, 1989, and is payable at the same time and in the same manner as the salaries paid to each of the Officers and employees of the City. LINK TO THE CALIFORNIA GOVERNMENT CODE : http://www.leginfo.ca.gov/cgi-bin/calawquerv?codesection=qov&codebody=&hits=20 2/11/10 2 Pa€rsi$p3rir�g The members cf#ire city rr� al receive such comperts �r fc than services as ttay be establrslaec#"by€ordrnjn6 Tlte" a crr may r ite compensation in addIt ion to nyf c sr received as a metier of city council,as rray eetatts* h crr# ar ce Thcrs "mern#ers # j+ council in office o WY,the effective elate of this Charter sk alj�brue tt be corrmpeas at t#a"level cif; c mpensabon e t�vel nt edxate#yr pri "ta the effective date oft #s Charter,and shall cciritinue to be; mpe sated;at s cl1,fe�rel;for the remainder of them It e% 5 lVo ordinance of the city".cc#uncil shall increase.thy camensti of ariyr member of„theourrcrl during that rntb �term of c�ffrce provided that nothing herein shall prevent the, itit tz1 ttte corn# r#sati` � a# mernlaers tinc whenever one e .berp of such c6 ic�rvr er lb�cs� es etrg�le .`; fora salary increase by w ue:ti beg#wr ing a e�t'terin of orrice Each memrr�k�er;of the city unc�l . shall receive,reimburses errt ors or of the"c�# council for=cciun i thori e traveling at tl" tlier .. :k .. hw expenseswhen on officil.ttuty: w b Pursuant to an ordinance adopted Pasadena p y the City Council authorizing the formation of a Committee on City Councilmembers'Compensation("the Committee"), each member of the City Council shall nominate one person to the Committee, subject to the approval of the City Council. The duties of the Committee shall be to study, take public input, and make recommendations regarding the compensation paid to members of the City Council and benefits to which the members of the City Council are entitled including, but not limited to, insurance, expense allowances and reimbursement. Each member of the Committee shall be an elector of the City. In making their nominations, City Councilmembers shall consider persons recommended by representatives of the fields of higher education, labor, business, and organizations reflecting the diversity of the City. No person shall be eligible for membership on the Committee who is, or within five years prior to his or her appointment was, an officer or employee of the City; or who has,within five years prior to his or her appointment, had any personal or business-related contractual relation with the City. The nominee of the Mayor shall act as temporary chair of the Committee,with the power to fix the time and place of the Committee's first meeting.At such meeting,the Committee shall elect a Chair and a Vice-Chair, and shall adopt such rules as it deems necessary to conduct its business.The provisions of the Ralph M. Brown Act shall govern the conduct of meetings of the Committee. Records of the Committee shall be maintained as public records as provided by State law.The Committee shall gather such information as it deems necessary to complete its duties, and prior to making its recommendation, shall hold at least one duly-noticed public hearing for the purpose of seeking public input.The City Manager shall provide office space, staff assistance and supplies for the work of the Committee. Committee members shall serve without compensation, other than reimbursement for reasonable expenses pursuant to City ordinance. Not later than October 1 of the year the Committee is appointed,the Committee shall submit to the City Council a report adopted by a majority of the members of the Committee recommending either that no change be made in the compensation paid to members of the City Council, or that change, either an increase or a decrease, be made and the amount thereof. If such report is not timely submitted, or is not adopted by a majority of the members of the Committee, the Committee's recommendation shall be deemed to be a recommendation for no change.The Committee shall cease to exist thirty(30)days after its report is submitted to the City Council. The City Council may take no action on the recommendation,or it may, by ordinance, adjust the compensation paid to members of the City Council by an amount not to exceed the recommendations of the Committee. No action which increases the compensation of City Council in excess of the level recommended by the Committee may be taken without a vote of the people.Any ordinance adopted pursuant to a recommendation of the Committee shall be adopted by a 2/3 majority vote and shall be subject to referendum as provided in this Charter. Once compensation has been initially established as provided in this section, no increase in the annual compensation shall be greater than five percent for each calendar year following the operative date of the most recent change for the compensation. No more than one ordinance establishing the compensation of City Council members may be adopted in any two calendar year period. Any compensation and benefits fixed as a result of this Section shall constitute full compensation for the services of the City Council member and the maximum benefits provided to the City Council member by the City. Until such time as the City Council adopts an ordinance as provided herein, Councilmembers shall continue to receive the compensation in effect as of the effective date of the Section. (Sec. 405 amended by vote of the people 11-3-1998: Sec. 405 amended by vote of the people 3-9- 1993: Sec. 405 amended by vote of the people 11-4-1980, effective May 4, 1981.) LINK TO THE CALIFORNIA GOVERNMENT CODE : http://www.leoinfo.ca.aov/ccii-binicalawg ery?codesection=aov&codebody=&hits=2 2/11/10 3 py E + �fiw f� Cornpets r 6 s �^ Ttt �ter3er €ifhaty Caount $shatt b nti 6o mbu eiaent,for actual andecessair pr s L �aa 3kcre v i .. 3� - exp r3ses:ngbrretl inthe.perfo once ci bt n h ive a�a ich shalt be set. �y' inartce in a or r usir `-�LW0%s►4rts !fit O ?! tfia 5 as it no�nr exists rasybhm r aeneth eStae - gisat�re;m See lit 1 Com " nsai ion of elective afficers other than Ma or and CttCo un�# Ttde[eire�fi o said G h r eivet tat d terries acompensati fortheirseices3 e des ,. five ca a tiesixd ird p tJz tt Tki€ corperat >s3 P- '� az' of � �` C9Li�L'i� for such se esy ot�e fry f asW orcfirri1 1% as a a sit o tciw �e i elect+ grid irtt h to o p 4;e,near wi i in th a sApntar to ttte date wihen nt rr►in�it r�tap rs for the x F s on� r, a feted,prov tied , oweve s h e evenQf �emergency end ire t}t�ent atiy Jaw,: his adoptb�theegistture of tJ�e State of"�atif nib;pernaait#ii :trtCreas d 'rig#Ile nod of,Y airy to got,,_ f the,"salaries f elective offi ers�th€;n antJ In tha#event the t ity o nciJ'rriay by ordinancineaso the salaries of such etect�ufoe iiaccardance with;te pravisiori of the generat a then effect}tn the event%f�arr a poJntrr its fill the3uacancy err tie o faired term f; �.. a : any eler rvr!offic at, the Crt CtSwncit may p�r t �e tune of ch appoint :n adep#an`ordinance, as an emergenc�r ordinaries prOviifiri> €or the ornJae sa i sSU, appc ii ee j ur n tJ e kiaJartce ; _,` ... , t o ch appoirit�ee pirm h su_. ofhe nexe t fre sa cr ctmpe � odep'W tncasede # rneee ru J atJ not be orb eJee iveJttffictals,i San Bernardino The Office of Mayor shall be a full time position and the incumbent shall not engage in any business, professional or occupational activities which interfere with the discharge of the duties of such office. Effective January 1, 2003,the annual salary of the Mayor shall be set at fifty percent (50%)of the salary for a Superior Court Judge, County of San Bernardino,State of California, as of July 1, 2002, and shall thereafter be adjusted and implemented January 1 of each subsequent year at the same fifty percent(50%)figure of the salary for said Superior Court Judge then in effect on said January 1 date. The Council Members shall each receive an annual salary of six hundred dollars($600.00), payable monthly. Santa Ana a rri mt)er©f the pity�0i1 Ct�$4& et g vo t fier s rvio sass sii a monthly Bata i f o undo; d and do ors member eJecterf o F fill the officef riso h t reeeive'the additioraa tin of s ve aY doOQ; t€ir each mtnth said irietier s Dili t tho ice m ' t it. rm of, Council shalt receive reimJaurs` e<�t f x ir�trayld i s�i:: urtt of 'at tisihssafih�tS v y y s a ds�r & ,✓ v � • ' k Fr �asittiized anAJ�p�r 311"H o ,.. Absence.of rrixiber of cun J frcirri re nspe al ee ,gs of ttxe Oi� tx�nct } � � �€fiir►rig are glen ar naort �aJt re de ii r r f e�a�� ly selary for uch a ���- cal�endargrnorith n>e;s k��per�isston tx�th� �i c� o rsse i ci aa!miri�es .- Santa Barbara Beginning July 1, 2005, the members of the City Council, except the Mayor, shall receive an annual salary in the sum equal to eighty percent (80%) of the annual Area Median Income and the Mayor shall receive an annual salary equal to one hundred percent(100%)of the Area Median Income. In addition, the Mayor and each member of the City Council shall receive reimbursement on order of the City Council for Council authorized traveling and other expenses when on official duty upon submission of an itemized expense account therefor, or may receive an advance for such purposes subject to such accounting. In addition, members shall receive such uniform, reasonable and adequate amount as may be established by ordinance, which amount shall be deemed to be reimbursement to them of other routine and ordinary expenses and costs imposed upon them by virtue of their serving as City Councilmen, including the Mayor. Te"Ir member as requ red b f thr� i t e a teary y,.. ccirafbrrriance Wirth sat�la °(Ord 1� � 9 ,�r 1, f r 5i, W . rIQrCf?tetl) ncit Members recei e $$ t per iyymoti d the aitir r rdr�rai oaf #> ,3 B .R f., LINK TO THE CALIFORNIA GOVERNMENT CODE : http://www.leg i nfo.ca,gov/cg i-bi n/calawguerv?codesection=qov&codebody=&hits=20 2/11/10 4 CALIFORNIA GOVERNMENT CODE: Council/Mayor Compensation 36514.5. City council members may be reimbursed for actual and necessary expenses incurred in the performance of official duties. Reimbursement for these expenses is subject to Sections 53232.2 and 53232.3. 36515. The compensation of a city councilman appointed or elected to fill a vacancy is the same as that payable to the member whose office was vacated. 36516. (a)A city council may enact an ordinance providing that each member of the city council shall receive a salary, the amount of which shall be determined by the following schedule: (1) In cities up to and including 35,000 in population, up to and including three hundred dollars($300)per month; (2) In cities over 35,000 up to and including 50,000 in population, up to and including four hundred dollars($400)per month; (3) In cities over 50,000 up to and including 75,000 in population, up to and including five hundred dollars($500)per month. (4) In cities over 75,000 up to and including 150,000 in population, up to and including six hundred dollars ($600)per month. (5) In cities over 150,000 up to and including 250,000 in population, up to and including eight hundred dollars($800) per month. (6) In cities over 250,000 population, up to and including one thousand dollars($1,000)per month. (a) For the purposes of this section the population shall be determined by the last preceding federal census, or a subsequent census, or estimate validated by the Department of Finance. (b)At any municipal election, the question of whether city council members shall receive compensation for services, and the amount of compensation, may be submitted to the electors. If a majority of the electors voting at the election favor it, all of the council members shall receive the compensation specified in the election call. Compensation of council members may be increased beyond the amount provided in this section or decreased below the amount in the same manner. (c)Compensation of council members may be increased beyond the amount provided in this section by an ordinance or by an amendment to an ordinance but the amount of the increase may not exceed an amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted. No salary ordinance shall be enacted or amended which provides for automatic future increases in salary. (d)Unless specifically authorized by another statute, a city council may not enact an ordinance providing for compensation to city council members in excess of that authorized by the procedures described in subdivisions(a)to(c), inclusive. For the purposes of this section, compensation includes payment for service by a city council member on a commission, committee, board, authority, or similar body on which the city council member serves. If the other statute that authorizes the compensation does not specify the amount of compensation, the maximum amount shall be one hundred fifty dollars($150)per month for each commission, committee, board, authority, or similar body. (e)Any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salary under this section provided the same benefits are available and paid by the city for its employees. (f)Any amounts paid by a city to reimburse a council member for actual and necessary expenses pursuant to Section 36514.5 shall not be included for purposes of determining salary pursuant to this section. 36516.1. A mayor elected pursuant to Sections 34900 to 34904, inclusive, of the Government Code may be provided with compensation in addition to that which he receives as a councilman. Such additional compensation may be provided by an ordinance adopted by the city council or by a majority vote of the electors voting on the proposition at a municipal election. 36516.5. A change in compensation does not apply to a councilman during his term of office; however, the prohibition herein expressed shall not prevent the adjustment of the compensation of all members of a council serving staggered terms whenever one or more members of such council becomes eligible for a salary increase by virtue of his beginning a new term of office. LINT(TO THE CALIFORNIA GOVERNMENT CODE : http://www.leginfo.ca.gov/cgi-bin/calawguery?codesection=gov&codebody=&hits=20 2/11/10 5 October 31, 2009 To: City of Huntington Beach Charter Reform Commissioners From: Raphael Sonenshein, Consultant Subject: Council Compensation Compensation for council members is a difficult challenge for California cities. The great majority of councilmembers seine part time. A balance must be struck between the policy role of councilmembers (who shouldn't be spending their time micromanaging city operations) and the increasing expectations of the public for constituency service and responsiveness from their councilmembers. The compensation should not be so great that councilmembers can see themselves as full timers, but must be high enough that a diverse range of people can afford to seek and hold public office. Rules for General Law Cities The California Government Code provides a starting point, since it is the basis for how general law cities compensate their councilmembers. Charter cities do not have to follow these rules, but they often adopt some variant of them anyway. According to the state code, a city council may adopt an ordinance providing for compensation based on population. For the smallest cities (up to and including 35,000 in population)the baseline cannot exceed $300 per month. Huntington Beach is in category#5 of 6 (150,000 to 250,000), and the amount may not exceed $800 per month. The code allows a majority of the voters to make changes to this baseline, either higher or lower. The council may also make changes as long as those changes are no larger than 5% for each calendar year that the initial ordinance has been in effect. This can be a substantial increase if no change has occurred for years. However, the council may not create an automatic increase, such as one pegged to the cost of living. General law cities may pay councilmembers up to $150 per month to serve on other committees authorized by statute (e.g., redevelopment). Councilmembers can also be reimbursed for"actual and necessary expenses." They can be compensated for benefits as long as such benefits are available to city employees. Rules for general law cities tend to be more restrictive than for charter cities. Even so, general law cities can pay significant salaries, offer benefits, reimburse expenses, and pay members to serve on other committees or commissions. Huntington Beach The mixture of compensation in Huntington Beach is not particularly unusual either for general law cities or for charter cities. The basic model, as can be seen in the attachments sent by Pat Dapkus, is a mixture of a monthly salary; a benefits package, reimbursement for official travel, and some funding for expenses deemed part of the work of a councilmember. Actually, the salary for Huntington Beach councilmembers is on the low side. A general law city of the size of Huntington Beach could pay its members up to $800 per month. The actual amount is $175 per month: There is great variety in the baseline salary for councilmembers in other cities. In Fontana, the salary is $1,170 per month; in Fremont, $1,407; in Moreno Valley, $1,101. Other cities, even with charters, defer to the rules for general law cities. Based on the general law population formula, these cities would pay higher salaries than Huntington Beach. Included in this group are Anaheim and Irvine. Possible Proposals for Commission Consideration The Commission may wish to consider consolidating all compensation into a single cash package. A review of other cities that can be seen in Pat's attachments indicates that this would be an unusual approach. Expenses and benefits are unpredictable, and it may be very difficult to estimate their value in cash terms. Furthermore, this might have the unintended effect of making Huntington Beach's compensation package, which at least in salary terms is actually quite modest compared to other cities, seem unusually rich. It is also possible to establish automatic models. This option is available to charter cities, but not general law cities. One of the problems with automatic models is that they can take Huntington Beach out of the "best practices" boundaries of comparable cities, and may not actually reflect the goals of councilmember compensation. An approach that may be more flexible is to establish a mechanism to evaluate council compensation on a regular basis, with comparisons to neighboring and other cities and current economic conditions. This is the model of the salary setting commission. A number of California cities use such commissions to make recommendations for council salaries. So far, I have identified Sacramento, San Jose, Stockton, Oakland, Pasadena, and Modesto as cities that use salary setting commissions to make recommendations. I imagine that further research will uncover more examples. The workings of this model vary from city to city, and I will use Pasadena as a detailed example. On November 3, 1998, Pasadena voters adopted Proposition O to empower the city council to establish a Committee on City Councilmembers' Compensation. The newly created Section 405 of the Pasadena City Charter indicated that such a commission could only be created once every two calendar years. Each member of the council nominates a member of the Commission, subject to the approval of the council. There are restrictions to prevent current or recent city employees or contractors from being selected. The Mayor's nominee serves as the chair. The council must adopt the recommendations by a two thirds vote, and in any case may not adopt any increase larger than that recommended by the commission without a vote of the people. Z� TA A• 3 Section 612.PUBLIC UTILITIES AND PARKS AND BEACHES. (a) No public utility or park or beach or portion thereof now or hereafter owned or operated by the City shall be sold,leased,exchanged or otherwise transferred or disposed of unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affinnative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted. (b) No golf course, driving range,road,building over three thousand square feet in floor area nor structure costing more than$100,000.00 $163,000.00 may be built on or in any park or beach or portion thereof now or hereafter owned or operated by the City unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted after the appropriate environmental assessment has been completed. Effective January 1, 2011, and each year thereafter, the maximum cost will be adjusted by the Construction Cost Index for the Los Angeles area. (c) Section 612(a)and 612(b) shall not apply; (1)to libraries or piers; (2)to any lease,franchise, concession agreement or other contract where; - the contract is to perform an act or provide a service in a public park or beach AND - such act was being performed or service provided at the same location prior to January 1, 1989 AND - the proposed lease,franchise,concession agreement or other contract would not increase the amount of parkland or beach dedicated to or used by the party performing such act or providing such service. (3) to above ground utility structures under 3,000 square feet, but may cost more than $163,000 to construct; (4) to underground structures if park or beach use is not impeded. (5) to any construction, maintenance or repair mandated by state or federal law; (d) 1f any section,subsection,part,subpart,paragraph, clause or phrase of this amendment, or any amendment or revision of this amendment,is for any reason held to be invalid or unconstitutional,the remaining sections,subsections,parts,subparts,paragraphs,clauses or phrases shall not be affected but shall remain in full force and effect. (12/7/90) ATTACHMEN T #4 COMMISSIONER BIXBY'S PROPOSALS: Affached is information submitted by Commissioner Mark Bemby that relates to the Charter sections scheduled for the Commission's Feb. 18 Meeting. REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 11/03/2009 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner i�.v 4 SUBJECT: Amend section 703 (Initiative, Referendum, and Recall). Statement of Issue: Population growth of the city makes it more challenging for grass-roots organizations to gather the required number of petition signatures to qualify ballot measures. This proposal retains the General Law percentage amount and time requirements, but changes the signature metric from the number of registered voters to the number of ballots cast in the previous general municipal election, resulting in a 26% decrease in the number of signatures required based on data from the 11/04/2008 election. Recommended Action: Motion to: Amend Huntington Beach charter section 703 to use the number of ballots cast in the last preceding general municipal election instead of the number of registered voters to determine whether initiative, referendum, and recall petitions have attained the percentage of valid elector signatures as specified by General Law to qualify for the ballot. Alternative Action(s): The recommended action above uses the "last preceding general municipal election" for simplicity. But turnout differences between presidential election years and non-presidential years will lead to wide fluctuations in the required number of signatures. Therefore I present the following alternative actions, either of which would serve to limit signature fluctuation: 1. Use the average number of ballots cast in the two preceding general municipal elections (one presidential, one non-presidential). 2. Use the number of Huntington Beach ballots cast in the last preceding presidential election. - 1 - 10/28/2009 1:16 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 11/03/2009 Analysis: The city's current initiative, referendum, and recall requirements follow General Law. Proponents of such measures must circulate petitions with specified deadlines for collecting voter signatures greater than or equal to 10% of registered voters in order to qualify for the ballot. The number of registered voters tracks closely with city population, thus the number of required signatures increases as the city grows over time. Well-funded proponents can always pay for signature collection no matter how big the city grows, but true grass-roots organizations generally lack the resources to mount paid signature gathering campaigns, and may find initiative, referendum, and recall to be effectively out of reach. The following graph charts city growth from 1910 to 2008. Population counts come from the US Census while election statistics come from the city clerk's archives. Election statistics prior to 04/07/1958 have been omitted for clarity. The graph shows that the first 50 years of the city were marked by very slow population growth, while the second 50 years ushered in explosive population growth which had been leveling off except for a slight uptick since 2000: I -*-Population - Registered Voters --Ballots Cast 250000 _.___..__ 200000 --- - 150000 - i 100000 = ­ . O M N CO O .0 N C0 O V c0 " (fl O 1- W N CO O "t M N CO _O N N M M M It 't u) LO t.C) M M t` tl— t` 00 00 O O M O O I The 04/12/1960 general municipal election serves as the dividing line between the two growth eras. There were 4,043 registered voters and 2,457 ballots cast in that -2- 10/28/2009 1:16 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 11/03/2009 election. If one assumes that current General Law initiative, referendum, and recall requirements were in effect back in 1960 (and I do not know if that assumption is true), then a minimum of 405 signatures would have been required to qualify citizen-circulated petitions. That equates to an average of 3 signatures per day for initiatives and recalls, and 14 signatures per day for referendums. Those numbers would have been easily achievable for all-volunteer grass-roots organizations. Now fast-forward to the present. Based on the 11/04/2008 general municipal (and presidential) election, a minimum of 12,920 signatures are required, which equates to an average of 72 signatures per day for initiatives, 431 signatures per day for referendums, and 81 signatures per day for recalls. That's approximately 32 times as difficult as compared to 1960 (based on the total number.of signatures). The following table summarizes the current and proposed signature requirements based on the 11/04/2008 election. The total number of signatures and the daily average across the entire collection period is provided for each measure type. However, a simple daily average may not be indicative of real-world conditions faced by all-volunteer grass-roots organizations. Most volunteers probably need to work for a living, and so can only collect signatures on weekends. Therefore I provide an alternative pair of daily averages which assumes that 80% of signatures are collected on weekends, and the remaining 20% are collected on weekdays. These alternative averages are for every Saturday and Sunday, plus every mid- week day during the collection period. -3- 10/28/2009 1:16 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 11/03/2009 129,193 registered voters Current Proposed 11/04/2008 election baseline 95,477 ballots cast (registered (ballots voters) east Total signatures required 12,920 9,548 Recall — 10% in 160 days Daill a 81 60 Daily avg (80% Sat-Sun) 225 167 Daily avg (20% Mon-Fri) 23 17 Total signatures required 12,920 9,548 Referendum — 10% in 30 days Daill avg 431 319 Daily avg (80% Sat-Sun) 1,034 764 Daily avg (20%Mon-Fri) 130 96 Total signatures required 12,920 9,548 Initiative— 10% in 180 days Daily avg 72 54 (next general election) Daily avg (80% Sat-Sun) 199 147 Daily avg (20% Mon-Fri) 21 15 Total signatures required 19,379 14,322 Initiative— 15% in 180 days Daily avg 108 80 (forces special election) Daily avg (80% Sat-Sun) 299 221 Daily avg (20% Mon-Fri) 31 23 Note that the above table (and indeed all of the signature numbers everywhere in this document) does not reflect the real-world need to collect some percentage of additional signatures beyond the statutory requirements in order to provide breathing room for the inevitable invalid signatures (people not registered to vote, etc). So the actual signature gathering effort will be greater than listed above. My proposal makes it easier to qualify initiatives, referendums, and recalls for the ballot, but I would not call new the requirements "easy", nor should they be. I feel that I have the bar set low enough such that all-volunteer grass-roots organizations can still utilize these fundamental levers of democracy, but high enough such that only sober-minded measures will qualify. -4- 10/28/2009 1:16 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 12/15/2009 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner SUBJECT: Various amendments to charter section 612 (Measure C) Statement of Issue: Fixes to strengthen Measure C Recommended Action: Motion to: Amend Huntington Beach charter section 612 as follows: • Formally include all of the requirements of the July H, 1994 city council minute action into the body of section 612. • Add new public vote trigger to the list in section 612(a) when entering into any form of agreement which results in reduced public recreational opportunities. Analysis: Incorporate City Council Minute Action of July 11, 1994 On July 11, 1994, the city council approved by a vote of 4-1-2 (ayes: Bauer, Moulton-Patterson, Winchell, Sullivan; noes: Silva; absent: Robitaille, Leipzig) the following minute action to clarify the intent of charter section 612 as noted immediately prior to the preamble of the current charter: "It is the intent of Charter Section 612, the Measure "C" amendment, that a vote of the people be the final approval of projects approved by the city for construction on park land or beaches. Therefore, all projects falling under the criteria of Charter Section 612 must obtain all city approvals prior to being submitted to a vote of the people. The - I - 12/8/2009 4:21 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 12/15/2009 cost for the ballot measure shall be borne by the applicant for the project. If the project requires a lease or other financial consideration, the terms and conditions of the lease and/or financial aspect of the project shall be included in the information provided for the Charter Section 612 vote." On July 3, 2006, when the city council approved placing the Central Park senior center on the ballot for a Measure C vote, the council also exempted the city from complying with the "must obtain all city approvals prior to being submitted to a vote of the people" clause of the minute action. This exemption (specifically from complying with CEQA) became one of the causes of action in the lawsuit of Parks Legal Defense Fund v. City of Huntington Beach. Although the judge dismissed this cause of action from the lawsuit due to the statute of limitations, the judge did rule that the city should have complied with CEQA prior to the Measure C vote. Thus because of this ruling, the city is already obligated to have completed CEQA approvals prior to future Measure C votes. I propose that the charter review commission go one step further and incorporate all of the July 11, 1994 minute action language into section 612. There were . various other city approvals in addition to CEQA that occurred after the senior center Measure C vote, as well as revealing the Pacific City Quimby fee diversion that would be used to fund construction of the senior center. Only by incorporating the minute action language into section 612 would all approvals and financial disclosures be forced to occur before future Measure C votes so that the public will truly understand what they are being asked to vote on. Add Vote Trigger for Agreements that Reduce Public Recreation Section 612(a) forces a public vote whenever public utilities, parks, or beaches are "leased" (emphasis added) in whole or in part: "No public utility or park or beach or portion thereof now or hereafter owned or operated by the City shall be sold, leased, exchanged or otherwise transferred or disposed of unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the -2- 12/8/2009 4:21 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 12/15/2009 electors voting on such proposition at a general or special election at which such proposition is submitted." This finite list of actions leaves a loophole whereby the city can evade a Measure C vote by labeling the action something other than a sale, lease, exchange, transfer or disposal. The city has exploited this loophole to lease portions of certain parks to wireless companies for cell phone towers by calling such agreements "site licenses". It is telling to note that the cell phone company documents for these agreements refer to them as "leases" and not "site licenses". Thus it is obvious that the city is playing semantic games to avoid the word "lease" to avoid Measure C votes. I propose to close this loophole by adding an additional vote trigger to section 612(a)— "...or any form of agreement which results in reduced public recreational opportunities...". It is not my intent to abrogate any existing agreements, or to prevent the renewal of such existing agreements. This will only apply to future agreements. Note that agreements that DO NOT reduce public recreational opportunities are exempt from this vote trigger. Thus, for example it would be permissible to add a cell antenna to an existing lighting pole or other structure (does not impact any recreational opportunities), but it would not be permissible to add a new cell tower in the middle of a grassy play area (reduces recreational opportunities) without a vote. Finally, note that this proposed additional language does not create any new exemptions to the section 612(b) size/cost vote trigger. Any construction or agreement that did not reduce public recreational opportunities would still be subject to the size/cost trigger. -3 - 12/8/2009 4:21 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 02/02/2010 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner iD SUBJECT: Add new charter language allowing the city council to establish by ordinance local preference and prevailing wage requirements for contracts Statement of Issue: Local preference and prevailing wage can be important tools for boosting the local Huntington Beach economy. I propose modifying the charter to allow (not require) the city council to establish local preference and prevailing wage requirements by ordinance. Recommended Action: Motion to: Add new Huntington Beach charter language as follows: The city council may by ordinance adopt prevailing wage, geographic boundaries and other guidelines and restrictions, including local bidding preference, governing public works and other city contracts. Analysis: Local preference and prevailing wage can be important contracting tools for boosting the local Huntington Beach economy, so I propose modifying the charter to give the city council the option to specify such requirements by ordinance. Huntington Beach municipal code section 3.02.180 (http://w wxv.huntinL,tonbedchca.gov;`files;users.city clerk-MC0302.pdf) already provides for local preference for goods & service contracts. However, charter section 614 requires public works contracts to be awarded to the "lowest responsible bidder", which precludes local preference requirements similar to HBMC 3.02.180. My proposal will allow the city council to implement similar local preference requirements for public works contracts. - 1 - 1/26/2010 9:13 PM REQUEST FOR CHARTER REVIEW C®1'dlMISSION ACTION MEETING DATE(S): 02/02/20I0 Current city practice is to pay prevailing wage for non-maintenance contracts. My proposal will allow the status quo to continue, and provides for a greater degree of policy formalization through the ordinance process. My proposal is derived from Lindsay charter section 8.11(K) nearly word for word, differing from the Lindsay language in only providing for such requirements by ordinance, and not also by resolution as is done in Lindsay. I prefer the greater formality of the ordinance process because it also gives the public a chance to exercise the right of referendum. Given the dire fiscal challenges facing the city in the years ahead, I am not comfortable with requiring the city to adopt local preference and prevailing wage. I want to ensure that the city has maximum flexibility to meet these challenges, and so my proposal only allows the city to optionally adopt such an ordinance. Implementing local preference and prevailing wage by ordinance will allow the city to make adjustments given changing fiscal realities, up to and including suspension or repeal if the fiscal situation becomes sufficiently dire. References: ® Lindsay charter section 8.11(K) - httt)::%%r`wNvw.blxb�.o1 L,`charter;charter s'Lindsay.pdf -2- 1/26/2010 9:13 PM ATTACH MENT #5 CHARTER REVIEW COMMISSION TIMELINE: Topic 8/18 9/01 9/15 10/06 10/20,' 11103 11/17 12/O1, „ 12/15 1/05 01/21* 2/02 .211 e ` 3/2 3i16 4/06 S$ tus Consent Items S Sects `101 '105,>>301;;404 405`603, 604, &,B06 Section'200 Council-Adh7inistrator Form of '' N X S Government Section 300,,Elective,Offices Discussion on o X x S Elected Mayor U Section 302 Council Compensator► x X Q R w :'Section 303 Meetings Possitile set by �( o S Ordnance or Resolutions � CN Secf�on 304 Subsecfion.(b) Council control of rv' M X x .o S all''legal business of`fie city o o Section 305 306-Mayors Role Review and 0 X X N S discuss adding language on Mayor's Rotation Section 307 Non-Interference,with x S Administration Q z c Sectiori308 onds B -Compliance with State -_ X M o D Law _ ~ M � Sectio Attorney Discuss Making m X ° S Appointed t, o Section'310 CityC/erk Discuss Making cn x x S Appointed Format for Maintaining Records Section 391—City Treasurer=Discuss`Making X X S Appointed Qualihcations — rr.. (6 2 ;Section 312 Vacancies:-Moral Turpitude X 3 S Section 313 Conflict of Interest Nepotism V'. X S See A"icipat.Code;;and Adm_:Reg 411 0 2/1 1/2010 5:13 PM O Charter Review Timeline Topic8118 9101 9115 10106 10120 11163 11/17 121011 12115 1105 01121" 2102 2118- 312 3116 4106 Status' "Section 400—404 City-,Administrator/Asst. X S City A"dm, ChangelUpdate Titles-HirelFire Dept. Heads -Sections 500-503—Ordinances;Resolutions,` X I S Publication, Legal Notices.-Second Reading of Ordinances - Sections 600-602-City Budget-Change in S Fiscal Year2 Submission tp Council 30 not 60 days Sections 605- City Budget -Allow Capital X S Projects to be Carried forward from one FY to the Next Section 607(b)'2_- Retirement'Tax X D Section 4W, 608 610, 614- Tax s.Update to,: X S conform with State Law Section 609-Estate Transfer Tax'-Possible- X S Elimination ; Section 612-Measure,C-Possibly Increase` R and Index Dollar Amount:, S ections 613-614—Contracts x R Increa*e Iiminate DollarAmount,°& Possibly Index to CPI Financial,Viability_ofBidders Prevailing Wage Discussion Section 615-'6ty Franchises X 1 S Section 616-Independent Audit-Higher Level X S Audit Soct�on 6?17 Infrastructure{c) Update Board x R N' m,e * Meeting Moved to THURSDAY ** 5th Tuesday 2 2/11/2010 5:13 PM Charter Review Timeline TOPIC 8/18 9%{l1 9/15� 16 6 10120 11/03 11/17 .12/01 12115- 1/05 . 01/21* 2/02 "2/18* 3/2 ; 3/16 U0 Status Article ctions Campaign Finance Refohri X X D Sectron 800- Transitions Review after'Election y X X S Sections ; Section 801 Definitions Possibly Elikhate--- X S Subsectign e =Masculine,mcludes Feminine- ,, Section 802 Charter Violations X S Discuss elrmrnatirrg dollar amount"& setting fines by ordrnan.Qp reso - W 5ecf+on 803 Property Rights X S Percy Quest+onCO Proposeds,Mscellaneous Additions to the City X o S Revrew`ofLanguage X X ED Voter Approval of Mbjor,6e'h&6/Plan X S Amendment Re-discussion jtems:,Campaign,Finance X S Reconsideration items X D Vote on pecornmended CharterAmendments X D r� LEGEND x Recommended Date for Discussion C Com leted D Discussion Needed ED Extended Discussion Needed R Reconsider- Decision pending further information for the Commission S Straw Vote taken to authorize preparation of draft ballot measure language * Meeting Moved to TH U RSDAY ** 5rh Tuesday 3 2/11/2010 5:13 PM City of Huntington Beach Staff/City Attorney Recommendations City Cha rter Based Upon Charter Review Committee Meeting of 12/15/09 Charter Review Section 612 Measure C February 18,2010 ISSUE #1: Updating the Section 612 (b) $100,000 threshold Options to Update 1990 Cost Threshold include the No golf course, driving range, road, building over following 2009 figures: three thousand square feet in floor area nor Consumer Price Index(CPI) $161,000 structure costing more than$100,000 may be Building Cost Index(BCI) $175,000 built on or in any park or beach or portion thereof 20-City Average now or hereafter owned or operated by the City Building Cost Index(BCI) $168,000 unless authorized by the affirmative votes of at Los Angeles Area least a majority of the total membership of the Construction Cost Index(BCI) $179,000 City Council and by the affirmative vote of at least 20-City Average a majority of the electors voting on such proposition at a general or special election at Construction Cost index(CCI) $163,000 which such proposition is submitted. Los Angeles Area-recommended ISSUE#2: Charter Review Commission ISSUE#3: Charter Review Commission directed City Attorney to insert appropriate directed City Attorney and Staff to come language relative to 1994 Minute Action: back with appropriate language to add inflation factor for dollar limit of projects: Measure C language doesn't indicate WHEN a vote of the people is required. 1994 City Council minute action indicated the EIR,CUP,construction plans&engineer's RECOMMEND ADDING: "Effective January 1, cost estimate should be prepared before the vote. ,,.......,� 2011, and each year thereafter, the The city would have spent more than$1.5 million for maximum cost will be adjusted by the the above work for the senior center before the vote. Construction Cost Index for the Los Angeles area." RECOMMEND ADDING: "after the appropriate environmental assessment has been completed" Section 612(c): Section 612(a)and 612(b)shall Section 612 (b) not apply.... • Recommended Language (1)to libraries or piers; (2)to any lease,franchise,concession agreement or other No golf course,driving range,road,building over three contract where; thousand square feet in floor area nor structure costing the contract is to perform an act or provide a service in a public more than$100,000 00-$163,000.00 may be built on or in park or beach AND any park or beach or portion thereof now or hereafter such act was being performed or service provided at the same owned or operated by the City unless authorized by the location prior to January 1,1989 affirmative votes of at least a majority of the total and membership of the City Council and by the affirmative - the proposed lease,franchise,concession agreement or other vote of at least a majority of the electors voting on such contract would not increase the amount of parkland or beach proposition at a general or special election at which such dedicated to or used by the party performing such actor proposition is submitted after the appropriate providing such service. environmental assessment has been completed. Ci requesting additional language to address Public Effective January 1,2012,and each year thereafter, q 9 the maximum cost will be adjusted by the Vorks utilities exceptions...... Construction Cost Index for the Los Angeles area. Public Works Infrastructure Exemptions Infrastructure Exemptions (Cont.) Possible Future Project Types: Examples: • Improvements to storm drains,water pipelines,and sewers, 5 • Sewer lift station replacements, — Ellis Station near Baca Park }r' — McFadden Station near Greer Park. # 4 y — Trinidad Station near Conrad Park r ` • Storm drain pump stations, • Park irrigation pump stations, • Storm water treatment,retention,detention,etc..., • State or Federally mandated projects,i.e.soil clean-up, Sewer Lift Station @ Bolsa View Park methane mitigation,etc... Infrastructure Exemptions (Cont.) Infrastructure Exemptions (Cont.) Examples: Examples: - t awe k t �.a Stormwater On-Site Detention &Treatment Structures Talbert Lake Project @ Central Park Section 612 (C) (c) Section 612(a)and 612(b)shall not apply.... To address Public Works concerns, add: (1)to libraries or piers; (2)to any lease,franchise,concession agreement or other • (3)to above ground utility structures contract where; - the contract is to perform an act or provide a service in a public under 3,000 square feet, but may cost park or beach AND such act was being performed or service provided at the same more than $100,000 to construct; location prior to January 1,1989; the proposed lease,franchise,concession agreement or other (4)to underground structures if park or contract would not increase the amount of parkland or beach dedicated to or used by the party performing such act or beach use is not impeded; providing such service; (3)to above ground utility structures under 3,000 square feet, but • (5)to any construction, maintenance or may cost more than$163,000 to construct; (4)to dergr°und structures if park or beach use is not repair mandated by state or federal law. impeded; eded; and (5)to any construction,maintenance or repair mandated by state or federal law Charter Commission Request: Charter Commission Request: Notification Process Cost Estimate Verification Recommendation:City Administration will provide. Proposed PrOC2SS t0 Verify Cost Of Administration Regulation to specify: • Procedure for independent cost estimate to determine if Improvements: a public or private project would require a Measure C vote • Public Works shall retain an as-needed • Public Notification processes for every city-owned or professional estimating consultant city-operated park or beach development project not requiring a Measure C vote,and with a cost of$10,000 • Project applicant shall submit their to$99,999 • Notification process similar to what is currently-used by construction cost estimate to Public Works Community Services and Planning Departments(mail for review and pay associated fee public notice to property owners win 300'of site and public notice in newspaper) City Attorney Assessment of Need for Measure C Vote-- Assumption based onl990"PRO"Ballot Arguments: Normal park/recreation improvements and amenities will continue to not require a Measure CHARTER SECTION 612 C vote. Such amenities include, but are not limited to, ball fields, bike paths, sports fields, Measure C equestrian trails, nature centers, basketball courts, small restaurants, restrooms, showers, picnic tables, and landscaping. Discussion and Questions Additional Assumption for consideration: One recreation amenity can replace another of the same size (example: Worthy Park replacement of racquetball building with a skate park) I MWM OF&I AGENDA Tuesday., Feb. 2 2010, 6:00 City Hall, - 1. Roll Call: Jerry Barre; Ralph Bauer. Dark Bixby, Patrick Brenden, Shirley Dettloff, Dick Harlow, Gregory Hartnett, Marijo Johnson, Gary Iutscher, Joe Shaw, Ray Silver, Sharie Sn ddon, Tim Stuart, Dave Sullivan, Shane Whiteside Il. Public Comments: An opportunity for the public to comment on any item of interest,either in general or specific to this agenda; that is within the subject matter or jurisdiction of the Commission. Comments will be limited to no more than 3 minutes. Speakers are encouracled to submit their comments in wrijbg Each Commission Member will receive a copy of all the submitted comments. Ill. Approval of the Commission minutes from January 5 and January 21. IV. Staff Presentation on Charter Sections 614 Contracts— Public Works and Section 617 Infrastructure Funds V. Discussion and possible action on City Charter Section: • 613 — Execution of Contracts i 1 —Contracts on Public Works including - - - a. Increasing or Eliminating threshold for triggering a bid process & possibly indexing that amount . The addition of the financial viability of the bidders c. Discussion on a request to add a prevailing wage requirement 617—Infrastructure Fund including discussion on: . The requirement that expenditures for infrastructure improvements and maintenance not be less than 1 % of the general fund revenues b. Citizen Infrastructure Advisory Board VI. Discussion and possible action on the Charter Review Commission Timeline/Schedule — Dakus VII. Distribution and possible discussion on legislative drafts of some of the Charter Sections on which the Commission has taken straw votes— McGrath VIII. Commissioner Requests: Questions, comments, or suggestions for discussion at a subsequent meeting of the Commission Request by Commission Chair Harlow to reconsider the straw vote taken on Charter Section 07(b) 2 - Retirement Tax * Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. 1 . Adjourn to the next regular meeting scheduled for THRSAY, Feb. 18 at 6 PIVI in City Hall Room, S Attachments: 1. Minutes from the Jan. 5 and Jan. 21 meetings . Public Works Commission Memo stated December 16, 2009, Curter Section 617- infrastructure Fund , Public Works Commission memo dated January 20 on revisions to Charter Sections 614- Contract can Public Works and 617- infrastructure Puna 4. Staff memo dated January 26 supporting the Public Works Commissions recommendations on Charter Section 614-Contracts on Public Works . Staff memo stated January 28 on Charter Section 617- infrastructure Fund 6. Updated Charter Review Tirnelinei'Schedue 7. Memo from City Attorney McGrath & Legislative Drafts of Charter Section 308,606. 607,608, 610. & 611 8. Information from Commissioner Bixby on amendments to City Charter on contracting and on the prevailing wage g. PLEASE also refer to information from the Jan. 21 meeting regarding prevailing wage available on the city's website under at: httD://wmv.huntincitonbeachca.gov./governmentiboards commissional€iles?01 11OA endaPacket.Ddf * Material Related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the Agenda Packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. ATTACHMENT 7r1 0 C ACTION MINUTES Tues., Jars, 05, 2010, 6:00 1. Roll Call: Jerry Barrie; Ralph Bauer, Mark Bixby, Patrick Brenden, Shirley Dettloff, Dick Harlow, Gregory Hartnett, Marijo Johnson, Gary Kutscher, Joe Shaw, Ray Silver, Sharie Sneddon; Tim Stuart, Dave Sullivan, Shane Whiteside All present except Stuart IL Public Comments: An opportunity for the public to comment on any item of interest, either in general or specific to this agenda, that is within the subject matter or jurisdiction of the Commission. Comments will be limited to no more than 3 minutes. Speakers are encoura-ged fo submit their comments in writing, Each Commission Member will receive a copy cif all the submitted comments, Public Comments were received as follows: ® David Rice spoke in favor of adding a provision to the City Charter requiring a vote of the public on major General Plan amendments. Ill. .Approval of Minutes from the December 15 Commission meetings. Motion Dettloff, second Kutscher to approve the minutes from the Dec. 15 meeting as submitted. IV. Discussion on a request to add language regarding General Plan amendment to the Charter similar to that in Newport Beach Municipal Code 423—Traffic Density. Following discussion on the above request Commissioner Dettloff made a motion that major General Plan amendments should not be addressed'n the City Charter. Her motion was seconded by Commission Bauer, She added that they are currently address through City Council policy,and they should continue to be addressed in that manner. Following further discussion, it was recommended that the recommendation from Rice be forwarded to the City Council as a policy consideration. The motion carried 1.1-3-1 (Bixby, Shaw,&-Sullivan No) V. Discussion:as requested on Section 607b) 2 - Retirement Tax At the Chair's request, the City Administrator provided information on the retirement tax. The retirement property will provide about$4 million this year to the city. It's cost is about $75 on a house evaluated at$500,000. if the revenue from the tax is lost, the city will continue to have its retirement obligation. Commissioner Sullivan made a motion to place before the voters the option to repeal this section of the City Charter. The motion was seconded by Commissioner Silver. Following a presentation by Commissioner Silver, the motion was amended to add that it should not take effect until July of 2012. The motion carried 10-4-1 (Bixby, Shaw, Johnson, &Dettloff No) Vl. under Article Vil of the Charter- Campaign Finance Commissioner Bixby had three recommendations for Campaign Reform: ® Add new charter section to provide safe harbor for prompt refund of improper campaign contributions k Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. ® Add new charter section to regulate surplus campaign funds ® Add new charter section to require electronic filing & Internet publication of Statements of Economic Interests and campaign finance disclosures from elected city officials Commissioner Bauer offered a motion not to include them in the Charter. The motion was seconded by Commissioner Sneddon. The motion carried 12-2-1 (Bixby& Shaw No) Commissioner Bauer made a motion to approve Commissioner Bixby's recommendation to include in the City Charter a requirement that the city council to-determine at least once every 10 years whether charter review is warranted. The motion was seconded by Commissioner Sneddon. The motion carried 12-2-1 (Silver&Sullivan No) Commissioner Bixby's recommendations included a prohibition of the use of eminent domain to transfer property from one private ownewr to another. After some discussion about current city law and practices, a motion was made by Commissioner Silver, seconded by Commissioner Bauer not to recommend this be added to the City Charter. The motion carried 9-5-1 (Hartnett, Bixby, Shaw,Brenden, & Sullivan No). Commissioner Bixby's recommendations also included a Charter amendment to require that the use of the City's transient occupancy tax(TO,T),to`encourage neighborhood improvement districts by funding neighborhood capital improvements selected by residents appointed to a Neighborhood Improvement Program Committee. Following discussion about the current use of the TOT to encourage"tourism a motion not to include this in the City Charter was made by Commissioner Silver and seconded by Commissioner Dettloff. The motion carried 13-1-1 (Bixby No). There was also a recommendation by Commissioner Bixby to add to the City Charter a requirement that parkin-lieu fees to be spent on parkland development whenever the per- capita park acreage ratio is below the requirement specified in the General Plan. Following discussion about current city practice and the General Plan requirements, Commissioner Bauer made a motion not to include;this requirement in the City Charter. The motion was seconded by Commissioner Dettloff. The motion carried 12-2-1 (Shaw& Bixby No). Commissioner Bixby.recommended that the Commission consider adding city tideland to the requirements in Section 612(Measure C) of the Charter. Commissioner Shaw made a motion to add city owned tidelands to this section of the Charter. City Attorney McGrath noted that the city could only identify as city owned tidelands a small area adjacent to the Huntington Beach Yacht Club. Commissioner Shaw withdrew his motion. Commissioner Bauer made a motion not to add city owned tidelands to this section of the Charter. The motion was seconded by Commissioner Sneddon and carried 13-1-1 (Bixby No). II. Commissioner, uests: Questions, comments, or suggestions for discussion at a subsequent meeting of the Commission Recommendations from Commissioner Dark Bixby Commissioner Shaw requested that the Commission receive the staff report on prevailing wage prior to the public meeting scheduled for Jan. 21. Commissioner Bame expressed a concern about forwarding recommendations other than those related to the Charter to the City Council. He noted that the Commission's mandate was to provide recommendations for amending the Charter. Material Related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the Agenda Packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. After some discussion, it was agreed that recommendations other than charter amendments would be offered as a separate list which would be reviewed and approved by the Commission. ill. Adjourn to the next regular meeting scheduled for Thursday, Jan 21 at 6 PM in City Hall Room B 6. Attachments: 1. Letter from !Caren Jackie; President of Huntington Beach Tomorrow 2. Memo from city staff on the city's General Plan Process 3. Memo from city staff on the retirement property tax. . Newport Beach Municipal Code 423 6. H.B. Municipal Cedes Section 2. --Campaign Reform . Summary Report on recent amendments orr.Municipal Cede. 2.07 . Sonenshein Memo dated Oct. 31 on Campaign Finance 6. Matrix of other cities carpaign finance later. 9. Recommendations from Commissioner Bixby on Article VII of the City Charter 10. Recommendations from Commissioner.Bixby on additions to the City Charter 11. better dated 09-14-09 from Ed Kerins'regarding Section 607(b)2 of the Charter 12. Information from avid Rice on his request.teerding the General Plan 3. Minutes from the December 15 Meeting Material Related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the Agenda Packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. 0 , i i ACTION MINUTES Thurs., ,fan. 1. Roll Call: Jerry game, Ralph Bauer, Mark Bixby, Patrick Brenden, Shirley Dettloff. Dick Marlow, Gregory Ftartnett, Marijo,Johnson, Gary.Eutscher, Joe Shaw, Ray Silver, Sharie Snedon, Tim Stuart, Dave Sullivan, Shane Whiteside ll. Public Comments: n opportunity for the public to cornment on any item of interest, either in general or specific to this agenda, that is within the subject matter or jurisdiction of the Commission. Comments will be limited to no more than 3 minutes. Speakers are encouracied to submit their coy menu in writincl. Each Commission !Member will receive a copy of all the submitted comments. PUBLIC COMMENTS WERE RECEIVED AS FOLLOWS: • Daniel Lozano— Support for adding prevailing wage: • Connie Boardman-Support for adding prevailing wage and a request for the Commission to reconsider its straw vote on the retirement property tax. • Karen Jackie— Opposed to add! 'prevailing wage • Bruce Lecair—Support for adding prevailing wage • Bob Douglas-Support for adding prevailing wage • John Carter-Support,for adding prevailing wage • Jim Moreno -Support foradding prevailing-,wage • Derek Spalding`=Support for adding prevailing wage • Robert Felix Support for adding prevailing wage • Peter Nicholas-Support for adding prevailing wage • Bob Kass-Support,for adding prevailing wage • Ken Hurd-;Support for-adding prevailing wage • Kevin Hehl-Support'for adding prevailing wage • Bret Baker-Support for adding prevailing wage • - Nicholas Nicioli-Supporf for adding prevailing wage • Teferi Gebre-Support for adding prevailing wage • Robert Livingston -Support for adding prevailing wage • Hart Keeble-Support;for adding prevailing wage • Vincent,'P,aaker-Support for adding prevailing wage • Rodney Larson-Support for adding prevailing wage • Anthony Burrowes-Support for adding prevailing wage • Jared Shoete-Support for adding prevailing wage • Chris Meyer-Support for adding prevailing wage • Rhett Smallwood-Support for adding prevailing wage • Rob Bryant-Support for adding prevailing wage • Richard Slawson -Support for adding prevailing wage * Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. items received after posting of the agenda will be distributed at the Commission meeting as late communications. • David Ball-Support for adding prevailing wage • Doug Manione-Support for adding prevailing wage • Jim Adams- Support for adding prevailing wage Ill. This meeting has been scheduled to take public testimony on a proposal to add a Section to the City Charter on the use of the prevailing wage. Commission discussion on this item will take place at their next meeting on Tuesday, February 2. IV, Discussion and possible action on the Charter Review Commission Timeline/Schedule Discussion on the Commission's schedule was postponed to the Feb. 2 meeting. V. Adjourn to the next regular meeting scheduled for Tuesday, Feb,. 2 at 6 PM in City Hall Room B-8. Attachments: 1. City staff memo on prevailing wage requirernent 2. Information from Jim Adams on behalf of the,LA/CC building & Construction Trades Council: a. A copy of his original letter containing language i6!be included in the Charter b. A document supporting prevailing wage: Prevailing Wage Laws are Good for America c. The results of eleven studies Elf the:' 'Effects of Prevailing Wage Laws. d. A booklet on Construction Apprenticeship Programs Career Training for the California Recovery. e. A booklet on Prevailing,,Wage and-Government Contracting Costs. f. A California Building,Tiades bulletin Frith respect to"the Supreme Court grants review of Bui-Iding Trades Petition on whether Charter Cities can exempt contractors on their projects from Stiie Law requiring, contractors on Public Works Projects to pay a prevailing wage. 3. Updated Charter,Review Timefihe Material Related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the Agenda Packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. ATTACH MENT #2 CITY OF HUNTINGTON TO: Chairman Harlow and the Charter Review Commission FROM: Chairman McGovern and the Public Works Commission DATE: December 16, 2009 SUBJECT: Revisions to City Charter Section 617 The Public Works Commission wishes to unanimously express our concern over the policy of including debt service for new infrastructure as part of the Charter required 1 % contribution for infrastructure improvements and maintenance Acting as the appointed Citizens Infrastructure advisory Board, we find the current application unacceptable and subject to further review. Please consider the following paints in relation to this critical issue. )PIWe believe the City is not complying with the intent and spirit of the Charter Section 617, The Commission believes the Charter Amendment was intended to provide funds;to maintain existing infrastructure. Members of the Infrastructure Advisory Committee (1AC)and Infrastructure Planning Committee (iPC);who advocated the Charter Amendment to the community presented the amendment as a potential dray to help repair and maintain deteriorating infrastructure facilities. Section 617 should encompass wording to preclude that pqst and future capital projects, requiring-General Fund,indebtedness, should not be considered as infrastructure maintenance car repair. Time Commission disagrees with time General Fund Infrastructure Debt.service for new facilities and does not consider debt servicing a part of infrastructure improvement or maintenance to existing capital assets. v The Commission"requests that the Charter Commission carefully review Section 617, and deVOlo clearwording that directs the Cit 'to allocate minimum general fund (151%) to the Infrastructure and support the care services,required to protect the assets of the City. This action will further the City's goal to fund necessary infrastructure repairs and routine maintenance. 'To support this important and required revision we recommend reference to P City ordinance or resolution. Based on,the 2009110 report, compliance with Section 617 indicates h five-year moving"averarde, excluding debt service, is far below the required 15 J. . Actual Actual Actual Bridget' Budget FY 2005106, FY 2a0610 FY2007/OE FY 20 81Q FY 2009/10 Actual General Fund Revenue "1649;'�`23,710 176 223,745 185,198,52 ,194;689,70 181,345,941 °l of evenue"w/debt service 18,26% '14.491 13.890/, 14_4;m 14.56�10 Avg,from FY 2005/06 (67Year)2 15.13% of Revenue w10 debt servi 13.95% 10 5711 10A811/, 11,211IX 11.08% 'Avg frami`FY 16051€}6(5-Year) 9.2 °lu Adapted General Fund Revenue for. Y 2008109 2 Y 2008109 Expense projected at 9011/b Revisions to City Charter Section 617 December 16, 2009 Page 2 The Commission strongly recommends that a subcommittee of the Public Works Commission members and other citizens be appointed to review this important Charter issue on a regular bads (semi annually) and report compliance to the full Public Works Commission, If no revision or clarification is initiated, the available funds for infrastructure mat.ntenance will continue to erode as the City undertakes future debt service for projects or refinances existing projects with debt. The City is not providing the funds necessary for proper asset management are sustainability. With the acknowledged limited budgets the funds necessary for proper asset management and sustainability are not being,provided. Critical infrastructure such as our streets, drainage system, and public buildings is in desperate need of repair and replacement after years of deferred maintenance. There are always advocates for new parks, new or bigger recreation centers, or more landscaped medians. but not for the underground infrastructure that is out of sight, out of mind. The City needs to protect these assets through good stewardship which requires a commitment to infrastructure funding; not burdened with debt service for new capital projects. As the City moves into an era of environmentally sound choices, we must make the decision to sustain our valuable and essential infrastructure. Adequate funding for infrastructure maintenance must be sustained through annual funding,. supported by the city. charter requirement: The Pt C stands ready and willing to work with the Charter Commission, the City Council and the City Administration in assuring this process is given a priority review.,Our members,look forward to discussing modifications to relevant sections of the City Charter at the scheduled February Charter Review Commission meeting. Please do not hesitate to contact me regarding this important natter. tea: Ile J n Me c`erh Chair Cc: Mayor Green and.City Council Members Fred A,_Wilson, City Administrator Attachments: Memo dated February-21,.2007 Memo dated August 23, 21004 CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION TO: Honorable Mayor Coerper and City Council Members FROM, Public Works Commission ATE. February 21, 2007 SUBJECT: 15%to Infrastructure Calculation The Public Works Commission wishes to unanimously express its concern over the policy of including debt service for the South Beach Improvements and the Central Park Sports Complex as part of the Charter required 15% contribution for infrastructure improvements and maintenance. The Commission believes the Charter Amendment was intended to provide funds to maintain existin infrastructure. Members of the Infrastructure Advisory Committee (JAC) and Infrastructure Planning Committee (IPC) who advocated the Charter Amendment to the community, presented the amendment as an effective way to Delp repair deteriorating infrastructure facilities. Although the inclusion of funds for infrastructure debt service may be legal, it does not represent the intent of the Charter Amendment. It should also be noted that the cost of parr improvements were not included when the 15% set-aside requirement was established. During the Integrated Infrastructure Management Program (IIMP) deliberations,the IAC was advised that parr improvement costs had an identified funding source through Park Acquisition and Development fees. The Commission requests that,for future budget years, the 15% calculation methodology be revised to exclude expenditures for bonded indebtedness and other costs not directly related to existing infrastructure maintenance, repair, replacement, and/or improvement. This action will further the City°s goal to Rand necessary infrastructure repairs. Attached to this letter are two tables setting forth City staffs calculation of the percentage of General Fund Revenue to Infrastructure with and without debt service and how the Debt Service; amount is calculated. As discussed alcove, the Public Works Commission feels strongly that Debt Service should not be a part of the annual percentage calculation of General Fund Revenue to Infrastructure; funding that is required by Section 617 of the City Charter. Accordingly, we respectfully request the following Council Minute;Action to clarify this paint(this is similar to the working in the Charter that clarifies the intent of Measure C regarding parks). It is the intent of Charter Section fit 7, the Infrastructure Fund amendment, that the minimum annual five (5) year rolling average of expenditures for infrastructure improvements and maintenance of 15%of general fund revenues shall include neither expenditures for bonded indebtedness(including principal, interest andlar other expenses) for capital Improvements nor other costs not directly related to existing Honorable Mayor Coerper and City Council Members 15%to Infrastructure Calculation Page 2 e infrastructure maintenance, repair, replacement andlor irpprovement, The intent of th 15% of general fund revenues is to provide a minimum level of annual infrastructure investment which will assure that the state of the City's infrastructure does not degrade to a point that requires major taxpayer investments to correct. The Public Works Commission shall report annually to the City Council an assessment of the methodology for the General Fund budgets 15% infrastructure expenditure calculation. (City Council Minute Action of i. Miphael Siersema, Chair Attachment cc: Penelope Culbreth-Graft, DPA, City Administrator Robert F. Beardsley, PE, Director of Public Works CITY OF HUNTINGTON BEACH 2000 Main Street PO Box 11110 + CA 921648 PUBLIC WORKS COMMISSION August 23, 2004 Honorable Mayor and City Council: At its meeting on August 18, 2004, the Public Works Corninissfoli requested that T prepare the following letter., Background The 200-04(leneral Fand budget for the Public%&,orl(s Departmem kvas reduced by approximately $3 million arid 34 full-time positions over the previous year,a 15 percent reduction in funding and staff s ing. Fhis was the largest reduction of any city department,representing about two-thirds of all city position reductions and the total net charme in the General Fund portion of the city budget, The reduction was accomplished through a rna:or reorganization of staff, creation of alternative service delivery methods and reduction or elimination of specific services. Service level chancres included areduction in park and tree maintenance,post control,arterial weed removal and.sidewalk cleaning and repairs. Other changes included a reduction in facilities preventative maintenance programs and a decrease in graffiti removal response time. The Public Works Department has identified approximately $20 nii1lion in urxfarnded and under funded Public Works programs, Of this amount,approximately.S8.5 million has been identified by -the Departnient as being the most significant,with those protecting property and enhancing safery as being the most critical, in the following priority order: Flood Control and Stoirri,Dram Station Capital Replace-ment-S2.4 million Bridge Repair and Pier Maintenance-$.5 million City Facility Capital Replacement-$1.7 million Sidewalk,Curb and Gutter Repairs-$2.8 million American with Disabilities Act Transition Plan-$50,000 Parks and landscape Maintenance-S350,000, Tree liviaintenance-$432,000 arterial Weed Removal and Sidewalk Cleming-$224,000 Graffiti Removal-$75,000 Downtown Sidewalk Cleaning450,000 'nie Public Works Commission is aware of the financial constraints facing the City ofHuritineton Beach but at the sarrie time is concei ried about possible degradation of the City,slinfrastructure and reduction in services. While it may not be possible to finance all SS.-I million in priority projects in FY 2004-05,we believe that a corunnitment should be made this next Fiscal Year to finance at least some of these projects. Funding will provide needed repairs arid services and get the City back on track of funding infrastructure needs, In addition,al'Aarch, 2002 Charter amendment created the Infrastructure FUnd to receive revenues for infrastructure improvements and maintenance. While a permanent source of funding for the Infrastructure Fund has yet to be established,we believe it approp�riate that the Fund receives priority allocation of unexpected funds received by he City flor the FY 2004-05 Budi-get.Recommendation I - Council provides fLuiding in the FY '2004-05 Budget foi- soi i of I I That the City I I e le $8 million in priority public works pro eats as by the Public Works Department. Thai the Infrastrucmi-e Fund receives priority allocation of inexpected ftinds received by the City for the FY 2004-0513tiduct. Sincerely, Richard'R. Hart, Chair- Public Works Commission RHjg C Public Works Commissioners Robert F. Beardsley,PE, Director of Public Works A A�C: TT HRRENT CITY OF HUNTINGTON BEACH �. INTE' I' DEF' ARTMEN ,rAL t= O .�'t.'IMU .;"aTICATION Chairman Marlow and the Charter Review Commission FROM: Chairman McGovern and the Public Works Commission DATE: January 20, 2010 SUBJECT: Proposed Modifications to City Charter Section 614 Contracts on Public Works and Section 617 Infrastructure Fund The Public Works Commission (PJVC) has reviewed sections of the current City Charter that apply to public works activities. Section 614 Contracts on Public Works, and Section 617 Infrastructure Fund, are relevant to our duties. Proposed modifications are incorporated in this memo with strike-cut for removal and italicized and underlined text to show insertions Section 614 Contracts on Public Works The PWC concurs with all requirements of this section requiring public bids for construction, bid rejection procedure', urgency clause, and utility extensions_ The minimum expenditure amount of twenty-five thousand dollars ($26,000) or more was established in 1962. An increase to one hundred thousand ($100,000) dollars, to be applied consistently in all areas of th Ie section, is proposed. ;This amount is consistent with CaliforniaPublic Contract Code Section 2C132. SECTION 614 CONTRACTS CAN PUBLIC WORKS S Except as hereinafter expressly provided, every contract involvingsn an expenditure of ore than Qc It a $ One'Hundred undre us nd Dollars 100,000 for the construction or it provear ent (excluding maintenance and repair) of public buildings, works, streets drains, sewers, utilities, parks and playgrounds, and each separate purchase cif' materials ear supplies for the same,,where the ;expenditure required for such purchase shall exceed the earn of , One Hundred Thousand Dollars f 0,000L shall be let to the lowest responsible bidder after notice by publication in accordance with Section 6t73 by two or more insertions, the first of -which shall be at least tern days before the time for opening bids. The City Council may reject any and all bins presented and may readvertise in its discretion. After rejecting bids. or if no bids are received, or without advertising for bids if the total amount of the contract or project is less than One Hundred Thousand Dollars 1 Crt thae Csty Council may declare and determine that in its opinion, the work in question may be performed better or more economically by the City with its town employees, or that the materials or supplies may be purchased at lower, price in the open market, and after the adoption of a resolution to this-effect by the majority of the total members of the City Council', it may proceed to have said weary done or.such materials or supplies purchased in the manner stated without further observance of the provisions of this section. All public worms contracts exceeding the sure of TweRty five Thousand Della Hun red Thousand��� may be let and purchases exceeding the sum of T rit-y- One Hundred Thousand Dollars 1 .' 1 may,,be' crude without advertising fear bids�if such work or the purchase of such materials or supplies shall be Memo from Public Works Commission Section 614 and Section 617 deemed by the City Council to be of urgent necessity for the preservation of life, health, or property and shall be authorized by at least five affirmative votes of the City Council. Projects for the extension, replacement or expansion of the transmission or distribution system of any existing public utility operated by the City or for the purchase of supplies car equipment for any such project or any such utility-may,be excepted from the requirements of this section by the affirmative vote of a rrmajority of the total members of the City Council, Section 617 Infrastructure Fund The PWC has expressed extensive concern over preserving funds for infrastructure maintenance. In keeping With our primary focus, we propose a limit to general fund debt service: toward the minimum fifteen percent(1 %)`infrastructure calculation. Section 617 INFRASTRUCTURE FUND (a) All revenue raised by vote of the electors or imposed by vote of the City Council on or after March 6, 2002, by a measure which states that the revenue to be raised is for the purpose of infrastructure, as said.term is defined,in this paragraph, shall"be placed in a separate fund entitled "Infrastructure Fund." The term "Infrastructure" shall mean long-lived capital"assets that normally are stationary in nature'and normally+can be preserved for significantly greater number of years. They include storm drains, storm water pumpstations,:alleys, streets, highways, curbs and gutters, sidewalks, bridges, street trees, 'landscaped medians,, pans', beach facilities, , playgrounds, traffic signals, streetlights, block Walls along arterial htighways, and all public,,.: buildings and public Ways. Interest earned can monies in the Infrastructure Fund shall accrue to that account. Monies in said Fund shall be utilized only for direct costs relating try infrastructure,,; improvements or maintenance,. including ,construction, design, engineering, project management, inspection. contract administration and property acquisition. Monies in said Fund shall not be transferred, loaned or otherwise encumbered1or any,other purpose. '(b) Revenues placed in the Infrastructure Fund shall not supplant,existing infrastructure funding, ma RteRar e. foF th fiv g to, inn °yas z°693 Expenditures for infrastructure improvements and maintenance, subsequent to 2001, shall not be reduced below 15% of general fund revenues based on a five- ( ) year rolling average D_. u n e , (c) The City Council shall: by ordinance establish a Citizens Infrastructure Advisory Beard to conduct an annual review and: performance audit of this Infrastructure Fund and report its findings to the City Council prior to,adoption of the follovaing fiscal-year budget Representatives from the PWC and the Public Works Department will attend the scheduled Charter Review Commission meetings., '1/l#e look'forward tc discussing these proposals. K �f 5" Mi hael Sierserfia, 'lice Chair MS1LDJg Cc. Mayor Green and City l✓oiancil Fred o`ils6n,City Administrator ATT A CHMENT #4 cy - � CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION i TO: Fred Wilson, City Administrator z FROM: Travis K. Hopkins, PE, Director of Publi Works DATE: January 26, 2010 SUBJECT: Charter Section 614 Contracts on Public Works The Public Works Department supports the Public Works Commission proposal to increase the expenditure minimum for publicly bid contracts from twenty-five thousand dollars ($25,000) to one hundred thousand dollars ($100,000). The current minimum i was established in 1982. The increased amount is proposed to apply consistently throughout the section. This limit is in keeping with California Public Contract Code Section 22032. The proposed revision only applies to Public Works construction contracts. Anticipated benefits would include fewer bid bond requirements and shortening the award process by two to three months. A higher minimum can significantly reduce citywide staff time required by the public process. Potentially, more qualified contractors will submit on the smaller jobs, resulting in more competitive pricing. i Current procurement policy would guide bids for under the $100,000 threshold. Formal bids are required for purchases over $30,000 per HBMC Section 3.02. Additionally, we agree with all language in Section 614 requiring public bids for construction, bid rejection procedure, urgency clause, and utility extensions. TKH/LD k z E i k ti i'. {i{ k f E` I_ f: p�p I' i I F I N"I CITY OF HUNTINGTON BEACH 7 INTERDEPARTMENTAL COMMUNICATION TO: Chairman Harlow and the Charter Review Commission FROM: Bob Wingenroth, Director of Finance DATE: January 28, 2010 SUBJECT: Proposed Modifications to City Charter Section 617 Infrastructure Fund In a memo dated January 20, 2010, Chairman McGovern and The Public Works Commission (PWC) proposed modifications to City Charter Section 617. The Finance Department has reviewed the PWC's proposed modifications and concurs with one exception as noted below. We recommend the following insertion shown below at the end of subsection (b), in bold text. Section 617 INFRASTRUCTURE FUND (a) All revenue raised by vote of the electors or imposed by vote of the City Council on or after March 5, 2002, by a measure which states that the revenue to be raised is for the purpose of infrastructure, as said term is defined in this paragraph, shall be placed in a separate fund entitled "Infrastructure Fund." The term "Infrastructure" shall mean long-lived capital assets that normally are stationary in nature and normally can be preserved for significantly greater number of years. They include storm drains, storm water pump stations, alleys, streets, highways, curbs and gutters, sidewalks, bridges, street trees, landscaped medians, parks, beach facilities, playgrounds, traffic signals, streetlights, block walls along arterial highways, and all public buiidings and public ways. Interest earned on monies in the Infrastructure Fund shall accrue to that account. Monies in said Fund shall be utilized only for direct costs relating to infrastructure improvements or maintenance, including construction, design, engineering-, project management, inspection, contract administration and property acquisition. Monies in said Fund shall not be transferred, loaned or otherwise encumbered for any other purpose. (b) Revenues placed in the Infrastructure Fund shall not supplant existing infrastructure funding. maiintenaRee,for the five ed of 1996 to 2001 is and was 14_950,. Expenditures for infrastructure improvements and maintenance, subsequent to 2001, shall not be reduced below 15% of general fund revenues based on a five- (5) year rolling average. Debt service included in the calculation shall not exceed three percent(3%) of-general fund revenue as determined for infrastructure expenditures. If the city's prior year audited financial statements report general fund expenditures in excess of revenues, the City Council may authorize a temporary suspension of this requirement. (c) The City Council shall by ordinance establish a Citizens Infrastructure Advisory Board to conduct an annual review and performance audit of the Infrastructure Fund and report its findings to the City Council prior to adoption of the following fiscal-year budget. Rationale for our recommendation Over the last ten years, the City of Huntington Beach has established a number of financial policies. One of the policies establishes an Economic Uncertainties Reserve. This Economic Uncertainties Reserve can only be used at the direction of the City Council and is intended as a funding source of last resort in an emergency. An emergency may be a natural disaster, a man- made disaster, or catastrophic financial emergency. The Economic Uncertainties Reserve provides resources for the City to continue to operate and provide needed services in an emergency. Without our recommended language, the Economic Uncertainties Reserve could be drawn down to zero in order to fully fund the 15% infrastructure requirement, without the opportunity for public discussion, debate, or Council action. Depending on circumstances, it may be the best decision to draw down the Economic Uncertainties Reserve to invest in needed infrastructure. This insert, however, does not compel it, but allows for an open City Council decision and opportunity for discussion and debate. Thank you for considering our proposed modification. CC" Chairman McGovern and the Public Works Commission Fred Wilson Paul Emery Bob Hall Travis Hopkins 2 i4TTACHMENT #6 UPDATE® CHARTER REVIEW COMMISSION TIMEL.iNE: I Topic8118 9101 911 90106 1012 11/03 "1I17 2/01 12f1,5 1105 01121" 2102 2118 312 3116 4/6 Status' Consent Items X S Sects 101,106 3011 404,.405,'603, 604, & 606,' Section 200 Council-Administrator Form of x S Govern mr ent Section 3Q0 Elective offices Discussion on °_ X X S `iected illaj%or U U Section 302 Council Compensation- 0 R w N p .Section 303 -Meetings Possible set by X U S C7rdinance or Resolutions Section 304 Subsecti,on�(b) Council control of M X X S all legal business of the city, 0 0 0 Section 305-306-Mayor's Rol6--Review and� o x x °�,' �' S discuss adding language on Mayors Rotation co N N Section 307 Non interference with L S AdminCD istration M _ - CD Section 306-Bonds Compliance with State " _ 0 D Law o o ° Section 309 City Attomey-Discuss Making X X - X S Appointed o 0 CL Section 310 City Clerk-Discuss Making cn X x X S Appointed, o Format for Maintaining Records ' Section 3 11-City Treasurer=Discuss)Making X S Appointed Qualifications _ Section 312 Vacancies-Moral Turpitude 0 S 1/26/2010 6:17 PM Charter Review Timeline 7°0 iC 8/18 9101 9/95 � 10/06 10/20 ft/0� �� 79iff �2/09 � ��1Z/15 4/05 01121 2102 2/18 � 3/2 3196 66 � Status Section 313 -Conflict of Interest Nepotism- X S See Municipal Code and Adm. Reg. 411 w _.... _ ------- Section 400-.404 City-Administrator/Asst. ° S City Adm, GHangelUpdate Titles-HiielFire Dept Heads Sections,566-503�—Ordinances,,Resolutions, D S Publication'Legal Notices Second Reading of Ordinances , i U c Sections 600-602 City Budget- Change in V 0 S Fiscat Year as 'Su bmission.to Council;30 not 60=daysCL Sections.605-City Budget -Allow Capital N U S F?rojects to'be Canned forward from one FY to: ° ° the Next o 0 0 Section 607(b) 2 Retirement Tax ) D O i Section , 608, 61"0, 611- Taxes,Update to X o S conform`with State Law _ N Section"669"-' Estate Transfer Tax-Possible a o z 3 S Elimination co o 3 R Section 612—Me'esure,C Possibly Increase ° 0 and Index DollarAmount" Sections 6f -'614-,Contracts 0, ED * IncreaselElirhinate DbllarAmount PossibV Index to CPI • Financial Viability of Bidders Prevailing We Discussion, ° Secti6n�615=City Franchises X �0 S Section 616-Independent Audit=Higher Level ,y� S Audit * Meeting Moved to THURSDAY 2 1/26/2010 6:17 PM Charter Review Timeline T'oprc 8/16 ti 9101 �115. 1al(i6 10120 91103 14/17 12101 12/15 1/05 01121* 2102 2118 312- 3116 416. '.Status'. Section`617=Infrastructure (c) Update'Board x D Name Article 7-Elections- Campaign Finance Reform#,' x x S Section 800 -Transitions;-Review afterEfection X x S Sections S Section 801 Definitions Possibly Eliminate Su6secfipra�ej-Masculine includes Feminine 'Se'cti6n.802-Charter Violations' S piscuss,"etirnmaYing dour amount _ - - setting fines by ordinai7celreso, ;.:. � c c Section.803-Property Rights X 0 E0 f°- S Policy Question", :'Proposed Miscellaneous Additions to,tbe City . ED Charter. Review of Language ED Voter Approval of a Major General<Planx Q Amendment Unresolved Items R LEGEND Recommended Date for Discussion C Completed D Discussion Needed ED Extended Discussion Needed PH Public Hearin Q No Substantive Issue—Possibly Quick Decision R Reconsider S Straw Vote Taken * Meeting Moved to THURSDAY 3 1/26/2010 6:17 PM ATTACHMENT #7 CITY OF HUNTINGTON BEACH Interdepartmental Communication TO: JENNIFER MCGRATH, City Attorney FROM: PAUL D'ALESSANDRO,Assistant City Attorney DATE: January 5, 2010 SUBJECT: Review of Charter Sections 308, 606, 607, 608, 610&611 RLS 09-2312 The City has empanelled a Charter Review Committee to make recommendations regarding the City Charter. You have asked for a review of Charter Sections 308, 606,607, 608,610&611. Section 308. OFFICIAL BONDS. The City Council shall fix by ordinance or resolution the amounts and terms of the official bonds of all officials or employees who are required by this Charter or by ordinance to give such bonds. All bonds shall be executed by responsible corporate surety, shall be approved as to form by the City Attorney, and shall be filed with the City Cleric Premiums on official bonds shall be paid by the City. A blanket bond may be used if it provides the same protection as the required separate bond would provide. Analysis: Under the General Law, City Treasurers, City Clerks, and other officers that may be enumerated by the City Council are required to provide "Official Bonds" in favor of their City. [Gov't Code Section 36518, 36519.) The bonds are conditional upon the officer to well, truly and faithfully perform all official duties then required of him by law, and also all such additional duties as may be imposed on him by any existing law of the State or law enacted subsequently to the execution of the bond. [Gov't Code Section 1501.] Although the City Charter and Municipal Code do not currently require any city official to provide an official bond, the City Council may enact an ordinance that would require such bonds to be provided, in which case this Charter section would apply. Section 606. DETERMINATION OF CITY TAX RATE. The City Council shall prescribe by ordinance for the assessment, levy and collection of taxes upon property which is taxable for municipal purposes. If the City Council fails to fix the rate and levy taxes on or before August 31 in any year, the rate for the next preceding fiscal year shall thereupon be automatically adopted and a tax at such rate shall be deemed to have been levied on all taxable property in the City for the current fiscal year. Jennifer McGrath January 5, 2010 Page 2 Analysis: All cities, whether charter or general law, have the power to tax. Cal Const. art. XI, § 5 (charter cities); Cal. Gov't Code § 37100.5 (general law cities). This section provides the Charter authority for the City Council to impose taxes. Issues most likely to arise in this area are constitutional limitations on taxation, such as Propositions 13 and Proposition 218. A "general tax" is a tax placed into the general fund for any and all municipal purposes. (Neecke v. City of Mill Valley, 39 Cal. App. 4th 946, 46 Cal. Rptr. 2d 266 (1995).) The imposition of general taxes is also subject to the provisions of Propositions 62 and 218 which require, among other things, a two-thirds vote of the legislative body, a majority vote of the voters voting in an election on the tax and the consolidation of such an election with a regularly scheduled general election for members of the city council. Section 607. TAX LIMITS. (a) The City Council shall not levy a property tax for municipal purposes in excess of One Dollar annually on each One Hundred Dollars of the assessed value of taxable property in the City, except as otherwise provided in this section, unless authorized by the affirmative vote of a majority of the electors voting on a proposition to increase such levy at any election at which the question of such additional levy for municipal purposes is submitted to the electors. The number of years that such additional levy is to be made shall be specified in such proposition. (b) There shall be levied and collected at the same time and in the same manner as other property taxes for municipal purposes are levied and collected, as additional taxes not subject to the above limitation, if no other provision for payment thereof is made: 1. A tax sufficient to meet all liabilities of the City of principal and interest of all bonds and judgments due and unpaid, or to become due during the ensuing fiscal year, which constitute general obligations of the City;and 2. A tax sufficient to meet all obligations of the City for the retirement system in which the City participates, due and unpaid or to become due during the ensuing fiscal year. (c) Special levies, in addition to the above and not subject to the above limitation, may be made annually, based on City Council approved estimates, for the following specific purposes, but not to exceed the following respective limits for those purposes for which limits are herein set forth, to wit:parks and recreation and human services not to exceed $0.20 per One Hundred Dollars; Libraries not to exceed $0.15 per One Hundred Dollars;promotional interests and cultural affairs not to exceed$0.07 per One Hundred Dollars; and civil defense and disaster preparedness not to exceed $0.03 per One Hundred Dollars. The proceeds of any special levy shall be used for no other purpose than that specified. Analysis: This section sets forth the City's tax limits for both regular property tax and the certain special levies. It should be noted that specifically as to property tax, the adoption of Prop 13 in 1978 limited ad valorem property taxes to one percent of the full cash value of the property. The one percent tax is collected by the counties and is apportioned to the taxing agencies within the counties. (Cal. Const. art. XIIIA, § l(a); Cal. Rev. & Tax. Code §§ 95 et seq.) 42503 Jennifer McGrath January 5,2010 Page 3 Section 608. VOTE REQUIRED FOR TAX MEASURES_ No tax,property tax, or other measure whose principal purpose is the raising of revenue, or any increase in the amount thereof, shall be levied, enacted or established except by ordinance adopted by the affirmative vote of at least five (5) members of the City Council; provided, however, that any tax levied or collected pursuant to Section 607(b) of this Charter shall be exempt from the minimum voting requirement of this section. This section shall not apply to any license, permit, or any other fee or charge whose principal purpose is to pay or reimburse the City for the cost of performing any regulatory function of the City under its police power in connection with the City's duty to preserve or maintain the public peace, health, safety and welfare. This section shall not apply to any user or service fee or charge provided such fee or charge is directly related to such use or service, is charged to the user or person receiving such service, and is to pay or reimburse the City for the costs of providing such use or service. This section shall not apply to any fee or charge relating to any franchise or proprietary function of the City. Anal: This section provides that a supermajority of the City Council is required for the approval of certain taxes.As mentioned above,it should be noted that the subsequent adoption of several voter propositions, such as Prop 13 and Prop 218, have imposed numerous additional constitutional requirements regarding the imposition of taxes by cities. Section 610. BONDED DEBT LIMIT. The City shall not incur an indebtedness evidenced by general obligation bonds which shall in the aggregate exceed the sum of 12 percent of the total assessed valuation,for purposes of City taxation, of all the real and personal property within the City. No bonded indebtedness which shall constitute a general obligation of the City may be created unless authorized by the affirmative vote of the majority required by law of the electors voting on such proposition at any election at which the question is submitted to the electors. Analysis: This section provides the City's limitation on the amount of bonded debt it may incur. Municipal bonds are typically categorized according to the source of the funds for repayment and generally fall into one of two categories: general obligation bonds and limited obligation bonds. General obligation bonds pledge a city's general funds and "full faith and credit" (i.e., the property taxing power) as security for payment of principal and interest to bond holders. The general framework for issuing such bonds is the Municipal Improvement Bond Act of 1901. Two-thirds voter approval is necessary for the issuance of general obligation bonds and they may be only used to fund the acquisition or improvement of real property. (Cal. Const. art. XIIIA, § 1(b); Cal. Const. art.XVI § 18;Cal. Gov't Code § 43614.) 42503 Jennifer McGrath January _`,2010 Page 4 Section 611. REVENUE BONDS. Bonds which are payable only out of such revenues, other than taxes, as may be specified in such bonds, may be issued when the City Council by ordinance shall have established a procedure for the issuance of such bonds. Such bonds, payable only out of revenues, shall not constitute an indebtedness or general obligation of the City. No such bonds payable out of revenues shall be issued without the assent of the majority of the voters voting upon the proposition for issuing the same at an election at which such proposition shall have been duly submitted to the registered voters of the City. Analysis: Revenue bonds pledge a specific source of revenue (e.g., user fees or charges) as security for the bonds. A city does not obligate other funds or revenues for the payment of the bonds. However,the city may elect to make payments from other sources in the event of default. `typically revenue bond financing avoids the classification as "debt" for purposes of the state constitution since a specific stream of revenues is being pledged and it falls within the "Special Fund" exception to the state constitutional debt limitation. Please contact me at your earliest convenience if I can be of any further assistance in regard to this matter. PAUL D'ALESSANDRO Assistant City Attorney /pd 42503 KEY INSERTIONS: Double underline DELETIONS fourth ARTICLE III ELECTIVE OFFICES Section 300.CITY COUNCIL,ATTORNEY,CLERK AND TREASURER.TERMS. The elective officers of the City shall consist of a City Council of seven members,a City Clerk,a City Treasurer and a City Attorney,all to be elected from the City at large at the times and in the manner provided in this Charter and who shall serve for terms of four years and until their respective successors qualify. Subject to the provisions of this Charter,the members of the City Council in office at the time this Charter takes effect shall continue in office until the expiration of their respective terms and until their successors are elected and qualified. Four members of the City Council shall be elected at the general municipal election held in 1966, and each fourth year thereafter.Three members of the City Council shall be elected at the general municipal election held in 1968, and each fourth year thereafter.No person shall be elected as a member of the City Council for more than two consecutive terms and no person who has been a member for more than two years of a term to which some other person was elected a member shall be elected to the City Council more than one further consecutive term. Subject to the provisions of this Charter,the City Clerk,City Treasurer and City Attorney in office at the time this Charter takes effect shall continue in office until the expiration of their respective terms and the qualification of their successors.A City Clerk and City Treasurer shall be elected at the general municipal election held in 1968,and each fourth year thereafter.A City Attorney shall be elected in 1966,and each fourth year thereafter. The term of each member of the City Council,the City Clerk,the City Treasurer and the City Attorney shall commence on the first Monday following his-the certification of the election.Ties in voting among candidates for office shall be settled by the casting of lots. Section 301.POWERS VESTED IN CITY COUNCIL. All powers of the City shall be vested in the City Council except as otherwise provided in this Charter. Section 302.COMPENSATION. The members of the City Council including the Mayor shall receive as compensation for their services as such a monthly salary in the sum of One Hundred Seventy-five Dollars per month. In addition,each member of the City Council shall receive reimbursement on order of the City Council for Council authorized traveling and other expenses when on official duty upon submission of itemized expense accounts therefor.In addition,members shall receive such reasonable and adequate amounts as may be established by ordinance,which amounts shall be deemed to be reimbursement to them of other routine and ordinary expenses,losses and costs imposed upon them by virtue of their serving as City Ceemerl Council ern sons. Section 303.MEETINGS AND LOCATION. (a) Regular Meetings. The City Council shall hold regular meetings at Ieast twice each month at such time as it shall fix by ordinance or resolution and may adjourn or re-adjourn any regular meeting to a date and hour certain which shall be specified in the order of adjournment and when so adjourned each adjourned meeting shall be a regular meeting for all purposes.If the hour to which a meeting is adjourned is not stated in the order of adjournment, such meeting shall be held at the hour for holding regular meetings. If at any time any regular meeting falls on a holiday such regular meeting shall be held on the next business day. (b) Special Meetings. A special meeting may be called at any time by the Mayor,or by a majority of the members of the City Council,by written notice to each member of the City Council and to each local newspaper of general circulation,radio or television station requesting notice in writing. Such notice 09-2312140865 1 KEY INSERTIONS: Double underline DELETIONS Stril ugk must be delivered personally or by mail at least twenty-four hours before the time of such meeting as specified in the notice. The call and notice shall specify the time and place of the special meeting and the business to be transacted.No other business shall be considered at such meeting.If any person entitled to such written notice files a written waiver of notice with the City Clerk,it may be dispensed with.Stie......:......may be given by telegr-afn:This notice requirement shall be considered fulfilled as to any person who is actually present at the meeting at the time it convenes.In the event of an emergency affecting the public peace, health or safety,a special meeting may be called as provided in this section with less than twenty-four hours written notice by the Mayor Pro Tern in the Mayor's absence or by any member of the City Council in the absence of both the Mayor and Mayor Pro Tem provided that the nature of the emergency is set forth in the minutes of the meeting. (c) Place of Meetings. All regular meetings shall be held in the Council Chambers of the City or in such place within the City to which any such meeting may be adjourned.If,by reason of fire,flood or other emergency,it shall be unsafe to meet in the place designated,the meetings may be held for the duration of the emergency at such place within the City as is designated by the Mayor,or, if he should fail to act, by a majority of the members of the City Council. (d) Open Meetings. All regular and special meetings of the City Council shall be open and public,and all persons shall be permitted to attend such meetings,except that the provisions of this section shall not apply to executive sessions. Subject to the rules governing the conduct of City Council meetings,no person shall be denied the right to be heard.by the City Council. Dissemination of Information. City Council shall adopt rules to ensure thorough and timely dissemination of information via current technology by resolutio Section 304.QUORUMS,PROCEEDINGS AND RULES OF ORDER- (a) Quorum. A majority of the members of the City Council shall constitute a quorum to do business but a lesser number may adjourn from time to time.In the absence of all the members of the City Council from any regular meeting or adjourned regular meeting,the City Clerk may declare the same adjourned to a stated day and hour.The City Clerk shall cause written notice of a meeting adjourned by less than a quorum or by the City Clerk to be delivered personally or by mail to each Council member at least twenty-four hours before the time to which the meeting is adjourned,or such notice may be dispensed with in the same manner as specified in this Charter for dispensing with notice of special meetings of the City Council. (b) Proceedings. The City Council shall judge the qualification of its members as set forth by the Charter.It shall judge all election returns.Each member of the City Council shall.have the power to administer oaths and affirmations in any investigation or proceeding pending before the City Council.The City Council shall have the power and authority to compel the attendance of witnesses,to examine them under oath and to compel the production of evidence before it. Subpoenas shall be issued in the name of the City and be attested by the City Clerk.They shall be served and complied with in the same manner as subpoenas in civil actions.Disobedience of such subpoenas,or the refusal to testify(upon other than constitutional grounds),shall constitute a misdemeanor,and shall be punishable in the same manner as violations of this Charter are punishable.The City Council shall have control of all legal business and proceedings and all property of the legal department, and may employ other attorneys to take charge of or may contract for any prosecution,litigation or other legal matter or business. 09-2312/40865 2 KEY INSERTIONS: DoubLeunderline DELETIONS &Wike� (c) Rules of Order. The City Council shall establish rules for the conduct of its proceedings and evict or prosecute any member or other person for disorderly conduct at any of its meetings.Upon adoption of any ordinance,resolution,or order for payment of money,or upon the demand of any member,the City Clerk shall call the roll and shall cause the ayes and noes taken on the question to be entered in the minutes of the meeting. Section 305.PRESIDING OFFICER. At the Council meeting at which any Council member is installed following any general or special municipal election,and at any time when there is a vacancy in the office of Mayor,the City Council shall meet and shall elect one of its members as its presiding officer,who shall have the title of Mayor.The Mayor may make and second motions and shall have a voice and vote in all its proceedings.The Mayor shall be the official head of the City for all ceremonial purposes;shall have the primary but not the exclusive responsibility for interpreting the policies,programs and needs of the City government to the people,and as occasion requires,may inform the people of any major change in policy or program; and shall perform such other duties consistent with the office as may be prescribed by this Charter or as may be imposed by the City Council. The Mayor shall serve in such capacity at the pleasure of the City Council. Section 306.MAYOR PRO TEMPORE. The City Council shall also designate one of its members as Mayor Pro Tempore,who shall serve in such capacity at the pleasure of the City Council.The Mayor Pro Tempore shall perform the duties of the Mayor during the Mayor's absence or disability or at the Mayor's request. Section 307.NON-INTERFERENCE WITH ADMINISTRATION. Except as otherwise provided in this Charter,no member of the City Council shall order,directly or indirectly,the appointment by the City Administrator,or by any of the department heads in administrative service of the City,of any person to any office or employment, or removal therefrom. Except for the purpose of investigation and inquiry,the members of the City Council shall deal with the administrative service under the jurisdiction of the City Administrator solely through the City Administrator,and no member of the City Council shall give orders to any subordinate of the City Administrator,either publicly or privately. Section 308.OFFICIAL BONDS. The City Council shall fix by ordinance or resolution the amounts and . terms of the official bonds of all officials or employees who are required by this Charter or by ordinance to give such bonds.All bonds shall be executed by responsible corporate surety,shall be approved as to form by the City Attorney,and shall be filed with the City Clerk.Premiums on official bonds shall be paid by the City. A blanket bond may be used if it provides the same protection as the required separate bond would provide. In all cases wherein an employee of the City is required to furnish a faithful performance bond,there shall be no personal liability upon,or any right to recover against,the employee's superior officer or other officer or employee or the bond of the latter,unless such superior officer,or other officer or employee is a party to the act or omission,or has conspired in the wrongful act directly or indirectly causing the loss. Section 309.CITY ATTORNEY.POWERS AND DITTIES. To become and remain eligible for City Attorney the person elected or appointed shall be an attorney at law,duly licensed as such under the laws of the State of California, and shall have been engaged in the practice of law in this State for at least three years prior to*ist e' -election or appointment.The City Attorney shall have the power and may be required to: (a) Represent and advise the City Council and all City officers in all matters of law pertaining to their offices. 09-2312/40865 3 KEY INSERTIONS: Double underline DELETIONS StrIeth augh (b) Prosecute on behalf of the people any or all criminal cases arising from violation of the provisions of this Charter or of City ordinances and such state misdemeanors as the City has the power to prosecute,unless otherwise provided by the City Council. (c) Represent and appear for the City in any or all actions or proceedings in which the City is concerned or is a party,and represent and appear for any City officer or employee,or former City officer or employee,in any or all civil actions or proceedings in which such officer or employee is concerned or is a party for any act arising out of Dist e'r employment or by reason of hisiheir official capacity. (d) Attend all regular meetings of the City Council,unless excused,and give histheir advice or opinion orally or in writing whenever requested to do so by the City Council or by any of the boards or officers of the City. (e) Approve in writine the form of all contracts made by and all bonds and insurance given to the Citys, (f) Prepare any and all proposed ordinances and City Council resolutions and amendments thereto. g) Devote such time to the duties of histheir office and at such place as may be specified by the City Councils (h) Perform such legal functions and duties incident to the execution of the foregoing powers as may be necessary. (i) Surrender to hist eir successor all books,papers,files,and documents pertaining to the City's affairs. Section 310.CITY CLERK.POWERS AND DUTIES. The City Clerk shall have the power and shall be required to: (a) Attend all meetings of the City Council,unless excused,and be responsible for the recording and maintaining of a full and true record of all of the proceedings of the City Council in books that shall bear appropriate titles and be devoted to such purpose. (b) Maintain separate books,in which shall be recorded respectively all ordinances and resolutions,with the certificate of the Clerk annexed to each thereof stating the same to be the original or a correct copy,and as to an ordinance requiring publication, stating that the same has been published or posted in accordance with this Charter. (c) Maintain separate records of all written contracts and official bonds. (d) Keep all books and records in hiss-heir hist—heir possession properly indexed and open to public inspection when not in actual use. (c) Be the custodian of the seal of the City. (f) Administer oaths or affirmations,take affidavits and depositions pertaining to the affairs and business of the City and certify copies of official records. (g) Be ex officio Assessor,unless the City Council,has availed itself,or does in the future avail itself,of the provisions of the general taws of the State relative to the assessment of property and the collection of City taxes by county officers,or unless the City Council by ordinance provides otherwise. 04-2312140865 4 KEY INSERTIONS: Double underline DELETIONS StfilE (h) Have charge of all City elections. (i) Perform such other duties consistent with this Charter as may be required by ordinance or resolution of the City Council. The City Clerk may, subject to the approval of the City Council,appoint such deputy or deputies to assist Itiz rt hern or act for himthem,at such salaries or compensation as the Council may by ordinance or resolution prescribe. The minimum qualifications for the position of City Clerk shall be three years of relevant work experience which demonstrates record management skills and practice of administrative procedures.(12/7/84) Section 311.CITY TREASURER.POWERS AND DUTIES. The City Treasurer shall have the power and shall be required to: (a) Receive on behalf of the City all taxes,assessments,license fees and other revenues of the City,or for the collection of which the City is responsible,and receive all taxes or other money receivable by the City from the County, State or Federal governments,or from any court,or from any office,department or agency of the City. (b) Have and keep custody of all public funds belonging to or under control of the City or any office, department or agency of the City government and deposit or cause to be deposited all funds coming into leis-their hands in such depository as may be designated by resolution of the City Council,or,if no such resolution be adopted,then in such depository designated in writing by the City Administrator,and in compliance with all of the provisions of the State Constitution and laws of the State governing the handling,depositing and securing of public funds. (c) Pay out moneys only on proper orders or warrants in the manner provided for in this Charter. (d) Prepare and submit to the Director of Finance monthly written reports of all receipts,disbursements and fund balances,and shall file copies of such reports with the City Administrator and City Council. (e) Perform such other duties consistent with this Charter as may be required by ordinance or resolution of the City Council. The City Treasurer may,subject to the approval of the City Council,appoint such deputy or deputies to assist hh -them or act for hirnt m,at such salaries or compensation as the Council may by ordinance or resolution prescribe. The minimum qualifications for the position of City Treasurer shall be a combination of education and experience in an area relative to fiscal management.(Charter Amendment 12/7/84) Section 312.VACANCIES,FORFEITURES AND REPLACEMENT. (a) Vacancies. A vacancy in the City Council or in any other office designated as elective by this Charter, from whatever cause arising, shall be filled by appointment by the City Council. (b) Forfeiture. If a member of the City Council is absent from all regular meetings of the City Council for a period of thirty consecutive days from and after the last regular City Council meeting attended by such 09-2312/40865 5 KEY INSERTIONS: Double underline_ DELETIONS &riles member,unless by permission of the City Council expressed in its official minutes,the office shall become vacant.If an elected City officer is convicted of QnIed no contest,regardless of a ep a2 to a crime, r ceases to be an elector of the City,the office shall become vacant. The City Council shall declare the existence of such vacancy. Any elective officer of the City who shall accept or retain any other elective public office,except as provided in this Charter,shall be deemed thereby to have vacated the office under the City Government. (c) Replacement. In the event it shall fail to fill a vacancy by appointment within sixty days after such office shall become vacant,the City Council shall forthwith cause an election to be held to fill such vacancy for the remainder of the unexpired term. Section 313.CONFLICT OF INTEREST,NEPOTISM. (a) Conflict of Interest. The City Council shall adopt or approve rules and regulations regulating conflicts of interest and promoting fair dealing in all City business. (h) Nepotism. The City Council shall not appoint to a salaried position under the City government any person who is a relative by blood or marriage within the third degree of any one or more of the members of such City Council,nor shall the City Administrator or any department head or other officer having appointive power appoint any relative of such person or of any Council member within such degree to any such position. This provision shall not affect the employment or promotional status of a person who has attained a salaried position with the City prior to the existence of a situation contemplated by this provision;however,Council members or officers with appointive powers in such a situation shall disqualify themselves from all decisions affecting the employment and promotional status of such person. 09-2312/40865 6 ARTICLE IV APPOINTIVE OFFICES AND PERSONNEL Section 400.CITY ADMINISTRATOR.COMPOSITION,TERM,ELIGIBILITY,REMOVAL. (a) Composition. There shall be a City Administrator who shall be the chief administrative officer of the City. (b) Term. The Administrator shall be appointed by the affirmative vote of at least a majority of the members of the City Council and shall serve at the pleasure of the City Council;provided, however,that the person occupying the office shall not be removed from office except as herein provided. (c) Eligibility. The Administrator shall be chosen on the basis of executive and administrative qualifications, with special reference to actual experience in and knowledge of accepted practice as regards the duties of the office as herein set forth. No person shall be eligible to be appointed City Administrator or Acting City Administrator while serving as a member of the City Council nor within one year following the termination of membership on the City Council. (d) Removal. The City Administrator shall not be removed from office during or within a period of ninety days next succeeding any municipal election at which a member of the City Council is elected. At any other time the City Administrator may be removed only at a regular,meeting of the City Council and upon the affirmative vote of a majority of the members of the City Council. At least thirty days prior to the effective date of removal, the City Administrator shall be furnished with a written notice stating the Council's intentions and, if requested by the City Administrator,the reasons therefor. Within seven days after receipt of such notice,the City Administrator may by written notification to the City Clerk request a public hearing before the City Council, in which event the Council shall fix a time for a public hearing which shall be held at its regular meeting place before the expiration of the thirty-day period above referred to. The City Administrator shall appear and be heard at such hearing. After furnishing the City Administrator with written notice of the intended removal, the City Council may suspend the Administrator from duty, but his compensation shall continue until removal as herein provided. In removing the City Administrator, the City Council shall use its uncontrolled discretion and its action shall be final and shall not depend upon any particular showing or degree of proof at the hearing, the purpose of which is to allow the City Council and the City administrator to present to each other and to the public all pertinent facts prior to the final action of removal. Section 401. POWERS AND DUTIES. Except as otherwise provided in this Charter, the City Administrator shall be responsible to the City Council for the proper administration of all affairs of the City. Without limiting this general grant of powers and responsibilities, the City Administrator shall have the power and be required to: (a) Appoint, promote, demote, suspend or remove department heads, officers and employees of the City except elective officers. However, no department head shall be appointed or removed until the City Administrator shall first have reviewed such appointment or removal with the City Council and have received approval for such appointment or removal by a majority vote of the full City Council. (b) Prepare the budget annually,submit it to the City Council,and be responsible for its administration upon adoption. (c) Prepare and submit to the City Council as of the end of each fiscal year, a complete report on the finances of the City, and annually or more frequently, a current report of the principal administrative activities of the City. 09-2312/40866 I (d) Deep the City Council advised of the financial condition and future needs of the City and make such recommendations as may seem desirable. (e) Maintain a centralized purchasing system for all City offices,departments and agencies. (f) Prepare, administer and enforce rules and regulations recommended to and adopted by the City Council governing the contracting for, purchase, inspection, storage, inventory, distribution and disposal of all supplies,materials and equipment required by any office, department or agency of the City government. (g) Be responsible for the compliance by the City with the laws of the State pertaining to the City, the provisions of this Charter and the ordinances,franchises and rights of the City. (h) Subject to policy established by the City Council, exercise control of all administrative offices and departments of the City and of all appointive officers and employees except those directly appointed by the City Council and prescribe such general rules and regulations as he may deem necessary or proper for the general conduct of the administrative offices and departments of the City under his jurisdiction. (i) Perform such other duties consistent with this Charter as may be required by the City Council. Section 402.ACTING CITY ADMINISTRATOR. During any temporary absence or disability of the City Administrator,the Asnt e u City Administrator shall serve as Acting City Administrator.During any temporary absence or disability of both the City Administrator, and the Assistant- e u City Administrator, the City Administrator shall appoint one of the other officers or department heads of the City to serve as Acting City Administrator. In the event the City Administrator fails to make such appointment, such appointment may be made by the City Council. Section 403.PERSONNEL. In addition to the City Council,a City Clerk, a City Treasurer,a City Attorney and City Administrator,the officers and employees of the City shall consist of such other officers,assistants, deputies and employees as the City Council may provide by ordinance or resolution. The City Council shall establish such reasonable compensation and fringe benefits as are appropriate by ordinance or resolution for such offices,officials and employees except as herein provided. The City Council shall maintain by ordinance a comprehensive personnel system for the City. The City Administrator, Assist int- e ut City Administrator and any officers designated as elective by the Charter shall be exempt. The system shall consist of the establishment of minimum standards of employment and qualifications for the various classes of employment and procedures to be followed in advancement, demotion, suspension and discharge of employees included within the system, as the City Council shall determine to be for the best interest of the public service. The ordinance shall designate the appointive officers and employees who shall be included within the system. By subsequent ordinances the City Council may amend the system or the list of appointive officers and employees included within the system,provided, however, that once included within the system, no officer or employee shall be withdrawn therefrom(unless the office or position is actually abolished or eliminated)without the approval of such withdrawal at a regular or special election by a majority of the voters voting on such proposition. The system shall comply with all other provisions of this Charter. Section 404.RETIREMENT SYSTEM. The City shall participate in a retirement system. Section 405. BOARDS, COMMISSIONS AND COMMITTEES. The City Council shall establish such boards, commissions and committees as are deemed necessary for the orderly functioning of the City. All such boards,commissions and committees shall report directly to the City Council. 09-2312/40866 2 ARTICLE V ORDINANCES AND RESOLUTIONS Section 500. REGULAR ORDINANCES.ENACTMENT,ADOPTION,PUBLICATION, AMENDMENT,WHEN EFFECTIVE AND CODIFICATION. (a) Enactment. In addition to such other acts of the City Council as are required by this Charter to be taken by ordinance, every act of the City Council establishing a fine or other penalty, or granting a franchise, shall be by ordinance. The enacting clause of all ordinances shall be substantially as follows: "The City Council of the City of Huntington Beach does ordain as follows:." No order for the payment of money shall be adopted or made at other than a regular or adjourned regular meeting. Upon introduction and second reading, an ordinance shall be read by title only. Unless a higher vote is required by other provisions of this Charter, the affirmative vote of at least four of the City Council shall be required for the enactment of any ordinance or for the making or approving of any order for the payment of money. All ordinances shall be signed by the Mayor and attested by the City Clerk. (b) Adoption. A regular ordinance shall be adopted only at a regular or adjourned regular meeting held no less than five days after its introduction. In the event that any ordinance is altered after its introduction, it shall be finally adopted only at a regular or adjourned regular meeting held no less than five days after the date it was so altered. The correction of typographical or clerical errors shall not constitute the making of an alteration within the meaning of the foregoing sentence. (c) Publication. The City Clerk shall cause each ordinance to be posted in three places designated by the City Council within the City and to be published by title with a brief summary at least once within fifteen days after its adoption in a daily, semiweekly or weekly newspaper, published in the County or the City and circulated in the City, which is selected by the City Council for that purpose and via current technology to ensure the widest dissemination. (d) Amendment. The amendment of any section or subsection of an ordinance may be accomplished solely by the re-enactment of such section or subsection at length,as amended. (e) When Effective. Every ordinance shall become effective thirty days from and after the date of its adoption,except the following,which shall take effect upon adoption: (1) An ordinance calling or otherwise relating to an election; (2) An improvement proceeding ordinance adopted under some special law or procedural ordinance relating thereto; (3) An ordinance declaring the amount of money necessary to be raised by taxation,or fixing the rate of property taxation,or levying the annual tax upon property. (4) An emergency ordinance adopted in the manner provided in this Charter. (f) Codification. Detailed regulations pertaining to any subject and comprehensive codifications of valid ordinances may be adopted by reference, with the same effect as an ordinance, in the manner set forth herein; however, such regulations and codifications need not be published in the manner required for other ordinances, but not less than three copies thereof shall be filed for use and examination by the public in the office of the City Clerk prior to adoption. Ordinances codified shall be repealed as of the effective date of the codification.Amendments to the code shall be enacted by ordinance. Section 501.EMERGENCY ORDINANCES. Any ordinance declared by the City Council to be necessary as an emergency measure for the immediate preservation of the public peace, health, or safety, and containing a statement of the reasons for its urgency,may be adopted in the manner provided in Section 500 except that such emergency ordinance may be introduced, enacted and adopted at one and the same regular 09-2312/40867 1 or special meeting and shall take effect immediately upon adoption if passed by at least five affirmative votes. Section 502. RESOLUTIONS. The City Council may act by resolution or minute order in all actions not required by this Charter to be taken by ordinance. Section 503. PUBLISHING OF LEGAL NOTICES. The City Council shall cause to be published all legal notices and other matters required to be published by law in a daily, semiweekly or weekly newspaper published in the County or the City and circulated in the City which is selected by the City Council for that purpose and via current technoloay. No defect or irregularity in proceedings taken under this section shall invalidate any publication where it is otherwise in conformity with this Charter or law or ordinance. 09-2312/40867 2 ARTICLE VI FISCAL ADMINISTRATION Section 600. FISCAL YEAR. The fiscal year of the City shall be established by efdinanee as set forth by resolution of the City Council. Section 601. ANNUAL BUDGET,PREPARATION BY THE CITY ADMINISTRATOR. At such date as the City Administrator shall determine, each board or commission and each department head shall furnish to the City Administrator, personally, or through the Director of Finance, estimates of the department's, board's or commission's revenue and expenditures for the ensuing fiscal year,detailed in such manner as may be prescribed by the City Administrator. In preparing the proposed budget, the City Administrator shall review the estimates,hold conferences thereon with the respective department heads,boards or commissions as necessary, and may revise the estimates as may be deemed advisable. Section 602. ANNUAL BUDGET. SUBMISSION TO THE CITY COUNCIL.. The City Administrator shall submit the proposed budget to the City Council at least s-ixty-th�days prior to the beginning of each fiscal year. After reviewing the proposed budget and making such revisions as it may deem advisable, the City Council shall hold a public hearing thereon at least fifteen days prior to the beginning of each fiscal year and shall cause to be published a notice thereof not less than ten days prior to said hearing. Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least ten days prior to said hearing. Section 603.ANNUAL BUDGET.PUBLIC HEARING. At the time so advertised or at any time to which such public hearing shalt from time to time be adjourned,the City Council shall hold a public hearing on the proposed budget,at which interested persons desiring to be heard shall be given such opportunity. Section 604. ANNUAL BUDGET. FURTHER CONSIDERATION AND ADOPTION. At the conclusion of the public hearing the City Council shall further consider the proposed budget and make any revisions thereof that it may deem advisable and on or before the last day of the fiscal year it shall adopt the budget with revisions, if any, by the affirmative vote of at least a majority of the total members of the Council. Upon final adoption, the budget shall be in effect for the ensuing fiscal year. Copies thereof, certified by the City Clerk,shall be filed with the City Administrator,Director of Finance,City Treasurer and the person retained by the City Council to perform the post audit function,and a further.copy shall be placed, and shall remain on file in the office of the City Clerk where it shall be available for public inspection.The budget so certified shall be reproduced and copies made available for the use of the public and of departments,offices and agencies of the City. Section 605.ANNUAL BUDGET APPROPRIATIONS. From the effective date of the budget,the several amounts stated therein as proposed expenditures shall be and become appropriated to the several departments, offices and agencies for the respective objects and purposes therein named;provided, however, that the City Administrator may transfer funds from one object or purpose to another within the same department,office or agency.All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered. At any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative vote of at least a majority of the total members of the City Council. Section 606. DETERMINATION OF CITY TAX RATE. The City Council shall prescribe by ordinance for the assessment, levy and collection of taxes upon property which is taxable for municipal purposes. If the City Council fails to fix the rate and levy taxes on or before August 31 in any year, the rate for the next 09-2312/40868 1 preceding fiscal year shall thereupon be automatically adopted and a tax at such rate shall be deemed to have been levied on all taxable property in the City for the current fiscal year. Section 607.TAX LIMITS. (a) The City Council shall not levy a property tax for municipal purposes in excess of One Dollar annually on each One Hundred Dollars of the assessed value of taxable property in the City, except as otherwise provided in this section, unless authorized by the affirmative vote of a majority of the electors voting on a proposition to increase such levy at any election at which the question of such additional levy for municipal purposes is submitted to the electors. The number of years that such additional levy is to be made shall be specified in such proposition. (b) There shall be levied and collected at the same time and in the same manner as other property taxes for municipal purposes are levied and collected, as additional taxes not subject to the above limitation, if no other provision for payment thereof is made: 1. A tax sufficient to meet all liabilities of the City of principal and interest of all bonds and judgments due and unpaid,or to become due during the ensuing fiscal year,which constitute general obligations of the City;and 2. A tax sufficient to meet all obligations of the City for the retirement system in which the City participates, due and unpaid or to become due during the ensuing fiscal year. (c) especial levies, in addition to the above and not subject to the above limitation, may be made annually, based on City Council approved estimates, for the following specific purposes, but not to exceed the following respective limits for those purposes for which limits are herein set forth, to wit: parks and recreation and human services not to exceed $0.20 per One Hundred Dollars; Libraries not to exceed $0.15 per One Hundred Dollars; promotional interests and cultural affairs not to exceed $0.07 per One Hundred Dollars; and civil defense and disaster preparedness not to exceed $0.03 per One Hundred Dollars.The proceeds of any special levy shall be used for no other purpose than that specified. Section 608. VOTE REQUIRED FOR TAX MEASURES. No tax, property tax, or other measure whose principal purpose is the raising of revenue, or any increase in the amount thereof, shall be levied, enacted or established except by ordinance adopted by the affirmative vote of at least five (5) members of the City Council;provided, however, that any tax levied or collected pursuant to Section 607(b) of this Charter shall be exempt from the minimum voting requirement of this section. Ibis section shall not apply to any license, permit, or any other fee or charge whose principal purpose is to pay or reimburse the City for the cost of performing any regulatory function of the City under its police power in connection with the City's duty to preserve or maintain the public peace,health,safety and welfare. This section shall not apply to any user or service fee or charge provided such fee or charge is directly related to such use or service, is charged to the user or person receiving such service, and is to pay or reimburse the City for the costs of providing such use or service. This section shall not apply to any fee or charge relating to any franchise or proprietary function of the City. Section 609. REAL ESTATE TRANSFER TAX. The City Council shall not levy a tax on the transfer or conveyance of any interest in real property unless authorized by the affirmative vote of a majority of the electors voting on a proposition submitted to the electors to authorize such tax at a general or special election. 09-2312/40868 2 Section 610. BONDED DEBT LIMIT. The City shall not incur an indebtedness evidenced by general obligation bonds which shall in the aggregate exceed the sum of 12 percent of the total assessed valuation, for purposes of City taxation,of all the real and personal property within the City_ No bonded indebtedness which shall constitute a general obligation of the City may be created unless authorized by the affirmative vote of the majority required by law of the electors voting on such proposition at any election at which the question is submitted to the electors. Section 611.REVENUE BONDS. Bonds which are payable only out of such revenues, other than taxes,as may be specified in such bonds, may be issued when the City Council by ordinance shall have established a procedure for the issuance of such bonds. Such bonds, payable only out of revenues, shall not constitute an indebtedness or general obligation of the City. No such bonds payable out of revenues shall be issued without the assent of the majority of the voters voting upon the proposition for issuing the same at an election at which such proposition shall have been duly submitted to the registered voters of the City. It shall be competent for the City to make contracts and covenants for the benefit of the holders of any such bonds payable only from revenues and which shall not constitute a general obligation of the City for the establishment of a fund or funds, for the maintaining of adequate rates or charges, for restrictions upon further indebtedness payable out of the same fund or revenues,for restrictions upon transfer out of such fund, and other appropriate covenants. Money placed in any such special fund for the payment of principal and/or interest on any issue of such bonds or to assure the application thereof to a specific purpose shall not be expended for any other purpose whatever except for the purpose for which such special funds were established and shall be deemed segregated from all other funds of the City and reserved exclusively for the purpose for which such special fund was established until the purpose of its establishment shall have been fully accomplished. Section 612.PUBLIC UTILITIES AND PARKS AND BEACHES. (a) No public utility or park or beach or portion thereof now or hereafter owned or operated by the City shall be sold, leased, exchanged or otherwise transferred or disposed of unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted. (b) No golf course, driving range, road, building over three thousand square feet in floor area nor structure costing more than $100,000.00 may be built on or in any park or beach or portion thereof now or hereafter owned or operated by the City unless authorized by the affirmative votes of at least a majority of the total membership of the City Council and by the affirmative vote of at least a majority of the electors voting on such proposition at a general or special election at which such proposition is submitted. (c) Section 612(a)and 612(b)shall not apply; (1)to libraries or piers; (2)to any lease,franchise,concession agreement or other contract where; - the contract is to perform an act or provide a service in a public park or beach AND - such act was being performed or service provided at the same location prior to January 1, 1989 AND - the proposed lease, franchise, concession agreement or other contract would not increase the amount of parkland or beach dedicated to or used by the party performing such act or providing such service. 09-2312/40868 3 (d) if any section, subsection, part, subpart, paragraph, clause or phrase of this amendment, or any amendment or revision of this amendment, is for any reason held to be invalid or unconstitutional, the remaining sections, subsections,parts, subparts, paragraphs, clauses or phrases shall not be affected but shall remain in full force and effect.(12/7/90) Section 613.EXECUTION OF CONTRACTS. Except as hereinafter provided,the City shall be bound by a contract only if it is made in writing, approved by the City Council and signed on behalf of the City by the Mayor and City Clerk or by a City officer designated by the City Council and only upon the direction of the City Council.Exceptions to this procedure are as follows: (a) By ordinance or resolution the City Council may authorize the City Administrator or other officer to bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services or other items included within the budget approved by the City Council, and may impose a monetary Iimit upon such authority. (b) By ordinance or resolution,the City Council may provide a method for the sale or exchange of personal property not needed in the City service or not fit for the purpose for which intended, and for the conveyance of title thereto. (c) Contracts for the sale of the products, commodities or services of any public utility owned, controlled or operated by the City may be made by the manager of such utility or by the head of the department or City Administrator upon forms approved by the City Administrator and at rates fixed by the City Council. Section 614. CONTRACTS ON PUBLIC WORDS. Except as hereinafter expressly provided, every contract involving an expenditure of more than Twenty-five Thousand Dollars($25,000)for the construction or improvement (excluding maintenance and repair) of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds, and each separate purchase of materials or supplies for the same, where the expenditure required for such purchase shall exceed the sum of Twenty-five Thousand Dollars ($25,000), shall be let to the lowest responsible bidder after notice by publication in accordance with Section 503 by two or more insertions,the first of which shall be at least ten days before the time for opening bids. The City Council may reject any and all bids presented and may readvertise in its discretion. After rejecting bids,or if no bids are received,or without advertising for bids if the total amount of the contract or project is less than Twenty-five Thousand Dollars ($25,000), the City Council may declare and determine that in its opinion, the work in question may be performed better or more economically by the City with its own employees,or that the materials or supplies may be purchased at lower price in the open market, and after the adoption of a resolution to this effect by the affirmative vote of a majority of the total members of the City Council, it may proceed to have said work done or such materials or supplies purchased in the manner stated without further observance of the provisions of this section. All public works contracts exceeding the sum of Twenty-five Thousand Dollars ($25,000) may be let and purchases exceeding the sum of Twenty-five Thousand Dollars ($25,000) may be made without advertising for bids if such work or the purchase of such materials or supplies shall be deemed by the City Council to be of urgent necessity for the preservation of life, health, or property and shall be authorized by at least five affirmative votes of the City Council. Projects for the extension, replacement or expansion of the transmission or distribution system of any existing public utility operated by the City or for the purchase of supplies or equipment for any such project or any such utility may be excepted from the requirements of this section by the affirmative vote of a majority of the total members of the City Council. 09-2312/40868 4 Section 615. GRANTING OF FRANCHISES. The City Council shall by ordinance regulate the granting of franchises for the City. Section 616. INDEPENDENT AUDIT. The City Council shall provide for an independent annual audit of all City accounts and may provide for such more frequent audits as it deems necessary. Such audits shall be made by a certified public accountant or firm of such accountants who have no personal interest, direct or indirect,in the fiscal affairs of the City government or any of its officers.The Council may,without requiring competitive bids, designate such accountant or firm annually provided that the designation for any particular fiscal year shall be made no later than thirty days after the beginning of such fiscal year. As soon as practicable after the end of the fiscal year, a final audit and report shall be submitted by such accountant to the City Council, one copy thereof to be distributed to each member. Additional copies of the audit shall be placed on file in the office of the City Clerk where they shall be available for inspection by the general public,and a copy of the financial statement as of the close of the fiscal year shall be published in the official newspaper. Section 617. INFRASTRUCTURE FUND. (a) All revenue raised by vote of the electors or imposed by vote of the City Council on or after March 5,2002, by a measure which states that the revenue to be raised is for the purpose of infrastructure, as said term is defined in this paragraph, shall be placed in a separate fund entitled "Infrastructure Fund." The term "Infrastructure" shall mean long-lived capital assets that normally are stationary in nature and normally can be preserved for significantly greater number of years. They include storm drains, storm water pump stations, alleys, streets, highways, curbs and gutters, sidewalks, bridges,street trees, landscaped medians, parks, beach facilities,playgrounds,traffic signals,streetlights, block walls along arterial highways, and all public buildings and public ways. Interest earned on monies in the Infrastructure Fund shall accrue to that account. Monies in said Fund shall be utilized only for direct costs relating to infrastructure improvements or maintenance, including construction, design, engineering, project management, inspection, contract administration and property acquisition. Monies in said Fund shall not be transferred,loaned or otherwise encumbered for any other purpose. (b) Revenues placed in the Infrastructure Fund shall not supplant existing infrastructure funding. The average percentage of general fund revenues utilized for infrastructure improvements and maintenance, for the five- (5) year period of 1996 to 2001, is and was 14.95%. Expenditures for infrastructure improvements and maintenance, subsequent to 2001, shall not be reduced below 15% of general fund revenues based on a five-(5)year rolling average. (c) The City Council shall by ordinance establish a Citizens Infrastructure Advisory Board to conduct an annual review and performance audit of the Infrastructure Fund and report its findings to the City Council prior to adoption of the following fiscal-year budget. 09-2312140868 5 ARTICLE VIII MISCELLANEOUS Section 800. TRANSITION. Elective officers and elective officers whose offices are made appointive of the City shall continue to hold such offices until the completion of their current terms and the election or appointment and qualification of their respective successors under this Charter.All boards,commissions and committees presently in existence shall continue to act in accordance with their original grant of authority until such time as the City Council adopts appropriate ordinances pertaining to their activities or for one year, whichever occurs first. All lawful ordinances, resolutions, rules and regulations, and portions thereof, in force at the time this Charter takes effect and not in conflict or inconsistent herewith,are hereby continued in force until the same shall have been duly repealed,amended,changed or superseded by proper authority. Section 801. DEFINITIONS. Unless the provisions or the context otherwise requires, as used in this Charter: (a) "Shall"is mandatory,and"may"is permissive. (b) "City" is the City of Huntington Beach and "department," "board," "commission," "agency," "officer,"or "employee" is a department, board,commission,agency,officer or employee,as the case may be, of the City of Huntington Beach. (c) "County"is the County of Orange. (d) "State"is the State of California. (e) The masculine includes the feminine and the feminine includes the masculine. (f) The singular includes the plural and the plural the singular. (g) "Person"includes firm and corporation. Section 802. VIOLATIONS. The violation of any provision of this Charter shall be a misdemeanor and shall be punishable apen-eenvietion by a fine of ,.a;..g Five Hundred ;collars-($500)-of—by as set forth by resolution of the City Council, and each day that any such violation continues shall constitute a separate violation. Section 803.PROPERTY RIGHTS PROTECTION MEASURE. (a) The City shall not enact or enforce any measure which mandates the price or other consideration payable to the owner in connection with the sale, lease, rent, exchange or other transfer by the owner of real property. Any such measure is hereby repealed. (b) The word "mandates" as used in subsection (a) includes any measure taken by ordinance, resolution, administrative regulation or other action of the City to establish, continue, implement or enforce any control or system of controls on the price or other terms on which real property in the city may be offered,sold, leased,rented,exchanged or otherwise transferred by its owner. The words "real property" as used in subsection (a)refer to any parcel of land or site, either improved or unimproved, on which a dwelling unit or residential accommodation is or may be situated for use as a home,residence or sleeping place. 09-2312140969 1 (c) This Section 803 shall not apply to: (1) any real property which contains serious health, safety, fire or building code violations, excluding those caused by disasters, for which a civil or criminal citation has been issued by the City and remains unabated for six months or longer; (2) any real property owned by a public entity, and real property where the owner has agreed by contract with the public entity, including the City and any of its related agencies, to accept a financial contribution or other tangible benefit including without limitation, assistance under the Community Redevelopment Law; (3) any planning or zoning power of the City as relates to the use, occupancy or improvement of real property and to any real property which the City or any of its related agencies may acquire by eminent domain,purchase,grant or donation; (4) any power of the City to require a business license for the sale or rental of real property,whether for regulation or general revenue purposes; (5) any dwelling unit or accommodation in any hotel, motel or other facility when the transient occupancy of that dwelling unit or accommodation is subject to a transient occupancy tax;or (6)to impair the obligation of any contract entered into prior to the enactment of this Section 803 or otherwise required by State law. 09-2312/40869 2 ATTACHMENT #8 REQUEST FOR CHARTER REVIEW COMMISSION ACTI®N MEETING DATE(S): 02/02/20I0 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner SUBJECT: Add charter language to give greater public oversight of long-duration contracts Statement of Issue: To create greater public oversight over city contracts by requiring contracts of duration greater than ten years to be approved by ordinance subject to referendum, and requiring contracts of duration greater than twenty five years to be approved by a majority of electors of the city. Recommended Action: Motion to: Add new Huntington Beach charter language as follows: No contract or lease or extension thereof for a longer period than ten years shall be valid unless said contract, lease or extension be made or approved by ordinance which shall be subject to referendum. The City Council shall not have the power to make or authorize any contract or lease or extension thereof for a longer period than twenty-five years unless said contract, lease or extension be approved by a majority of the qualified electors of the City voting on such question at any election. A contract, lease or extension for a longer period than twenty-five years shall be valid without such elector approval if it provides for the acquisition by the City at the end of such period of the real or personal property so leased or contracted for. This Section shall not apply to any franchise granted pursuant to the provisions of this Charter or to any contract for the furnishing, or acquisition of the products, commodity or services of any public utility. Alternative Action(s): 1. Increase the threshold for requiring contract approval by ordinance to something greater than ten years. 2. Increase the threshold for requiring contract approval by the electors to something greater than twenty five years. - 1 - 1/26/2010 9:14 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DA'TE(S): 02/02/2010 Analysis: Long-duration contracts warrant extra oversight by the public to help ensure that such contracts are in the best economic interest of the city and its taxpayers. Downey charter section 518 requires that contracts greater than ten years in duration be approved by ordinance so that the public can have the right of referendum to overturn contracts that are not in the best interest of the city. Newport Beach charter section 420 requires that contracts greater than twenty five years in duration be approved by a majority of the electors of the city. My proposal is a "mashup" of both of these charter sections, and retains the exclusions for franchise contracts and public utility contracts. Franchise and utility, contracts tend to be the contracts with the longest durations, and thus excluding these contracts from my proposal greatly reduces the number of contracts subject to these restrictions. I.am willing to consider alternative duration thresholds. It is my intent that the ordinance-required threshold be triggered infrequently, and the election-required threshold be triggered rarely. References: e Downey charter section 518 (ten year threshold) - http..%`';%� .dog neyca.or�icit charter. ® Newport Beach charter section 420 (twenty five year threshold) - htt :'`/www.code Liblishiii g.com`CA/!New ort each`litml/New oitBeachC 1. html.04.420 -2- 1/26/2010 4:14 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 02/02/2010 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner SUBJECT: Add new charter language allowing the city council to establish by ordinance local preference and prevailing wage requirements for contracts Statement of Issue: Local preference and prevailing wage can be important tools for boosting the local Huntington Beach economy. I propose modifying the charter to allow (not require) the city council to establish local preference and prevailing wage requirements by ordinance. Recommended Action: Motion to: Add new Huntington Beach charter language as follows: The city council may by ordinance adopt prevailing wage, geographic boundaries and other guidelines and restrictions, including local bidding preference, governing public works and other city contracts. Analysis: Local preference and prevailing wage can be important contracting tools for boosting the local Huntington Beach economy, so I propose modifying the charter to give the city council the option to specify such requirements by ordinance. Huntington Beach municipal code section 3.02.180 (f tt :flwNN.Av.hLintingtonbeachca.wv;�fi I esfuserslcity clerk:"MC0302.pdf) already provides for local preference for goods & service contracts. However, charter section 614 requires public works contracts to be awarded to the "lowest . responsible bidder",which precludes local preference requirements similar to HBMC 3.02.180. My proposal will allow the city council to implement similar local preference requirements for public works contracts. - 1 - 1/26/2010 9:13 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DA'TIE(s): 02/02/2010 Current city practice is to pay prevailing wage for non-maintenance contracts. My proposal will allow the status quo to continue, and provides for a greater degree of policy formalization through the ordinance process. My proposal is derived from Lindsay charter section 8.11(K) nearly word for word, differing from the Lindsay language in only providing for such requirements by ordinance, and not also by resolution as is done in Lindsay. I prefer the greater formality of the ordinance process because it also gives the public a chance to exercise the right of referendum. Given the dire fiscal challenges facing the city in the years ahead, I am not comfortable with requirin,-the city to adopt local preference and prevailing wage. I want to ensure that the city has maximum flexibility to meet these challenges, and so my proposal only allows the city to optionally adopt such an ordinance. Implementing local preference and prevailing wage by ordinance will allow the city to make adjustments given changing fiscal realities, up to and including suspension or repeal if the fiscal situation becomes sufficiently dire. References: Lindsay charter section 8.11(K) - htt : ,/-kvNN�,v.bixbN,.oral`charter.,charters"Lindsay. df -2- 1/26/2010 9:13 PM f l AGENDA Thurs., Jars. 21, 2010, 6:00 PM City all, City Council Chambers 1. Roll Call; Jerry Pame.. Ralph Bauer, Mark Bixby, Patrick Brenden, Shirley Pettloff, Dick Marlow, Gregory Hartnett, l4arijo Johnson, Gary bCutscher, Joe Shaw, Ray Silver, Sharie Sneddon, Tim Stuart, Dave Sullivan; Shane Whiteside ll. Public Comments: An opportunity for the public to comment on any item of interest, either in general or specific to this agenda; that is within the subject matter or jurisdiction of the Commission. Comments will be limited to no more than 3 minutes. Smokers are encouraged to submit their comments in writing. Each Commission Member will receive a copy of ali the submitted comments. III. This meeting has been scheduled to take public testimony on a proposal to add a section to the City Charter on the use of the prevailing wage. Commission discussion on this item will take place at their next meeting on Tuesday, February 2. IV. Discussion and possible action on the Charter Review Commission Timeline/Schedule. V. Adjourn to the next regular meeting scheduled for Tuesday, Feb. 2 at f PM in City Ball Room . Attachments: * . City staff memo on prevailing wage requirements . Information from Jim Adams on behalf of the t A/OC Building & Construction Trades Council: a. A copy of his original letter containing language to be included in the Charter b. A document supporting prevailing wage: Prevailing Wage Laws are Good forAmerica c. The results of eleven steadies of the; Effects ofPrevailing Wage Laws. d. A booklet on Construction Apprenticeship Programs Career Training for the California Recovery. e. A booklet on Prevailing Wage and Government Contracting Costs. f. A California State Building Trades bulletin with respect to the Supreme Court grants review of Building Trades Petition on whether Charter Cities can exempt contractors on their projects from State Law requiring contractors on Public Works Project to pay prevailing wages. 3. updated Charter Review Timeline Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. CITY OF HUNTING 'TON BEACH INTERDEPARTMENTAL COMMUNICATION TO: Fred Wilson, City Administrator FROM: Travis K. Hopkins, PE, Director of Public Works DATE: January 14, 2010 SUBJECT: Prevailing Wage Practices Prevailing wage is the rate paid to a majority of workers engaged in a particular craft, classification, or type of work within a locality. In California, the rate is determined by the State Director of Industrial Relations. As a charter city, Huntington Beach is not required to pay prevailing wage on projects that are of a municipal affair, however, it is City Council policy to require these wages for public works construction that was reaffirmed in 2002. Funding source can direct the prevailing wage requirement. Accepting federal and state grants requires the payment of state prevailing wages. Certain local agencies, such as the Orange County Transportation Authority (OCTA), administer federal programs. Grants received through these agencies incorporate the prevailing wage requirement. The current Huntington Beach practice is requires prevailing wage on all publicly bid construction projects. Maintenance activities such as street sweeping are exempt from the prevailing wage requirement. Beginning in 2009, the city implemented a policy to pursue the most cost effective maintenance services. Selected providers must meet the city's insurance, financial, and licensing requirements. The chart below summarizes the current prevailing wage practice. Huntington Beach Prevailing Wage Practices Funding Project Type Projects Prevailing Source Examples Wage Federal Public Works FEMA—Civic Center Yes- required per grants construction EPA— Drainage pipeline granting agency FHWA—Street rehabilitatio State Public Works Caltrans—Traffic signals, Yes - required per rants construction safe routes to school granting agency City Public Works Sewer and water Yes - per current funds construction systems, facilities, City Council pavement replacement policy City Maintenance & Street sweeping, graffiti No -optional on new funds service removal contracts S Rt Los Angeles Orange Counties �4 tl?i Construction 6 'a arrf,'I�a7tta'evaxra 16 Building and Trades Council i 7141817-6791 Executive Srrreta n, iflRialefl with the Building� f`aarrstrrrctir�ra l'F�xcfas!3e}�i..=�11-��1�) January 8, 201. To: Huntington Beach Charter City ReVlew Commission rmw Jim Adams, Council Representati 4e .Re: Information regarding the requested inclusion of revai ng wage language into the new Ckv Charter. Dear Commissioners: This packet of information is being supplied to you to assist you in your decision -with respect to the inclusion of language to continue the requirement that prevailing wages be paid on all City funded construction projects in Huntington Beach. I. A copy of original letter containing actual language to be included in the Charter. . A document supporting prevailing wages; Prevailing Wage e Laws Are Good For America . The results of eleven studies of the; effects of Prevailing Wage Lamv. . A booklet on Construction.Apprenticeship Prpgramv Career Tr irung for California's Recovery. book-let on Prevailing Wagav and Gower meat ntr ctin, Cost . A California state Building .Tradff bulletin with respect to the Supreme Court grants review of Building Trades petition on whether Charter Cities can exempt Contractors on their projects frorn.State Law requiring Contractors on public Works Prgiects to pair prevailing wages, Thank You for our consideration. Ifyou have questions, I can he reaehedky trf ce phone 213 8-3-422 , yell##213 47 - 2 , e+ncatl Adams Information 1 of 65 , , 4 Los An eles / Orange C®unties 1626 !� ,Iy B..1ev. Buildingand Construction Los Angeles, CA 90026-5784 Phone(213)483-4222 Trades Council (714)827-6791 RICHARD N.SLAWSON Fax(213)483-4419 Executive Secretary Affiliated with the Building& Construction Trades Dept.,AFL-CIO 4� - July 15, 2009 Office Of City Clerk City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Dear City Clerk: Please consider this letter a formal request to incorporate the prevailing wage language listed below into the proposed City Charter. We specifically request you forward this letter to the Huntington Beach City Councilpersons as well as the Charter City Review Committee for their consideration into the proposed Charter. The language is as follows: Prevailing Wages The provisions of California Labor Code Section 1770 ex seq. regarding prevailing wages on public works and related regulations, as now existing and as may be amended, are accepted and made applicable to the City, its departments, boards, officers, agents and employees Thank you for your consideration. if 1 can be of any assistance please contact me at Council Offices. You may also reach me by cell #213 479-8283. My email address is j imeadams@sbcglobal.net Sincerely, y o 4 =j .o Jim Adams = cn Council Representative 2t,c n 0 co Adams Information 2 of 65 1 ECTI SU AY y, The, urrenteconomic downturn has caused vast unemNdy'rnent. in California s construction 8 industry. -ln-the year ending in June 2009 the state lost r M almost a fifth(18 6%)of its wy; , construction lobs the greatest T percentage.amongall major ii industries'.betting;workers back on the job is crucial,tt " getting the California economy back its feet on Yet, increased employment is !u not enough for an`,equttable ..., r �r recovery.The construction construction Historically good fobs have been'depl`eteclfbythe` . squeeze on the middle class over,the past 30 years Anti the � . industry is shifting to a green FIB econom uvith a fo_cus.on view ;1 v r y . pstruct on worle has tvvo 3face5 *The joint laborer anagerri�en 'r gams; skills in response to climate r It can rovide stable, mi dl class are rrioresuceessful than uh eral cFiarige and high energy costs �� y, As tHeecoriiamreVives new areers orRtemporaJy hazarpous,� managemerrt programs at removing Y r de end=fobs � iarers tgraclpatrc�rx a'nci therefore construction lobs must antlude ,. have much hi her coin letion rates middle dash career paths and g p *A renticeshr ; ro rams siren then �. � training in•skilis for the green pp p,p g g r communities by providing career paths ', * Local policies are needed.that.encq tAlge j economy aria e risr�tent health into'rarice#nr and supp ort successful apprenticeship,Mlk k ,dp - ' people#turn disadvantagedack grounds programs` These rndude-local.hrinc As.this report demonstrates � a }�Tey al op zbene#it tJe bilildtrilinrls re' uirerraents resit�Jrcesor su rt buile#rng trades apprenticeship r g s � l pK Eby reducing wcirkplace injuries reducing_ , services and using the pulalre� programs provide the best P '` model to keep the"tonstfuctlon turnover and providing a motivated and contracting process to set and enforce wellrarned rkfoce standards , industry on'the hrgl�roacf.and prouide high qualtty�lobs to �cst apprenticeship programs rril a With a proven record of success time benefit o#the industry V Ifcsrnia(82°l�}ark 1otr t labor ir►i prodiJ ing a skilleii v ar force ' �, the�workers and the greater managert programs establisl Qd apprenticeship programs�provide the coin nunaty-17 :, through Collective IargaringTHose best means to kers ii the >. .. W ..3-. �. Galjforrrta Employment©eueloprrient -.. .� rigrams•produc almost alg ,fo)o#: skills needed for lie rter green Depar€ment Lador tviarket- ivislor,.2t3E}9 , ,. f'• � Califom a Empiaymeet HEghligfrts for Ji#y 2009 NMI he states apprerlt�ceship graduates ._ eonorny Current Employment stat�sttcs�(CEsy Program ., ,a r TABLE OF CONTENTS Executive Summary and Key Findings Economic Trends • Shifting to the Green Economy The Truth about Construction • Construction is Hazardous • Construction Jobs are Low-Wage, Temporary and Lack Benefits Registered Apprenticeships: The Basics , • How Apprenticeship Differs From Other Training The Value of Apprenticeships • The Value for Industry Healthcare and Pension Benefits Worker Safety • The Value for Workers Wages and Career Stability Paring PrevaAng Wage Strengthens Farniiies 10 Apprenticeships Succeed Because Labor and Management Work Together • The Vast Majority of California's Apprenticeship Programs are Joint Labor-Management • Joint Programs Have More Graduates and Higher Completion Rates Barriers to Program Completion • Dropouts • Worker StorT Iron Wornan • Poaching 14 Necessary Policies to Support Apprenticeship Programs • Career Ladders— Pathways out of Poverty Recruitment and Case Management Soft Skills Hard Skills Careers Case Study: 'Los Angeles Unified SC-noCii Jfl.t,,;c, ,,vve a�ulid • Local Hire Requirements • Good Jobs in the Green Economy Weatherization Pre-Apprenticeships • Worker Story: From apprentice to contractor 17 Summary 17 Recommendations 18 Appendix: Work Descriptions and Enrollment Requirements for Southern California Joint Labor-Management Apprenticeship Program Occupations Adams Information 4 of 65 R :II j ➢ D D i i • C j � � � ' I!r 9 "s III�I�il�4 11 �41 k 8 C e� ECONOMIC TRENDS An historical look at the middle-class shows that as worker productivity increases, wages also increase. Between 1947 and 1979, worker productivity and income doubled together. Since the 1980s, however, incomes have grown only a quarter as much as worker productivity.Since 2000, middle-class families have experienced a nearly 4% decline in real income while productivity has increased 18.5%.2 The disconnect between wages and productivity means that the benefits of increased productivity have not been shared equally. In fact, half of overall economic growth from 1993 to 2007 went to the top 1% of incomes. In the boom times of 2000-2007, the top 1% of incomes captured two-thirds of the economic growth.3 Besides family-supporting wages, a good, middle-class job encompasses employer-provided health insurance, pensions, paid va- cation and holidays, sick leave and family leave,a safe and healthy workplace, some degree of employment security and opportu- nities for advancement.' The history of "good jobs" over the last three business cycles(1980s, 1990s, and first half of 2000s)shows a sharp deterioration in the provision of benefits.' For Qifiiti on: ` the years 1979-2006, the share of jobs with employer-provided health insurance declined ren,os 5.3% and those with employer-provided pensions declined 6.4%.6 Job s with family suppornnq`� � wages aric#benefifsjm fields Rebuilding the middle class will require reconnecting worker productivity with compensation that cantri6ute sigrificantiy.,` through the creation and support of good jobs. to°preseryirEg or enhancing Shifting to the Green Economy environmental quality' The new, green economy is changing the face of construction, with new types of jobs using new technologies and innovations on current practices. Solar panel installation or energy efficiency auditing are examples of new green jobs that build on skills that trained and qualified construction workers have had for years. Middle Class Task Force(MCTF).The Vice President of the United States.2009.The American Recovery and Reinvestment Act:Helping Middle Class Families. Saez,Emmanuel.2009.Striking it Richer:The Evolution of Top Incomes in the United States.Updated version of an article which appeared in Pathways Magazine.Stanford Center for the Study of Poverty and Inequality,Winter 2008,6-7. 4 Definition taken from Schmitt,John.2007.The Good,the Bad,and the Ugly:lob Quality in the United States over the Three Most Recent Business Cycles.Center on Economic and Policy Research(CEPR)and Sarah White and Jason Walsh.2008.Greener Pathways:lobs and Workforce Development in the Clean Energy Economy.Center on Wisconsin Strategy (COWS),The Workforce Alliance and The Apollo Alliance. Schmitt,John.2007.The Good,the Bad,and the Ugly.-Job Quality in the United States over the Three Most Recent Business Cycles.Center on Economic and Policy Research(CEPR). e Schmitt,op cit. White,Sarah and Jason Walsh.2008.Greener Pathways:Jobs and Workforce Development in the Clean Energy Economy.Center on Wisconsin Strategy(COWS),The Workforce Alliance and The Apollo Alliance. Adams Information 5 of 65 E E a E 5 ID E E E ■ E f REGISTERED APPRENTICESHIP: THE BASICS Apprenticeship is a combination of on-the-job training and related instruction in which workers learn the practical and theo- retical aspects of a highly skilled occupation.19 The apprentice works side-by-side with a journeyworker to attain demonstrable competency in the craft.20 Apprenticeships are time-intensive and require high standards of performance. Oversight of registered programs is provided directly by the U.S. Department of Labor for 25 states and through state-ap- proved agencies in the other 25 states.21 How Apprenticeship Differs From Other Training The strict legislative regulation over apprenticeship programs creates a unique immersion training system and sets it apart from others, such as paid internships. The apprentice and the program sponsor sign an apprenticeship agreement, which contains the terms and conditions of the employment and training of the apprentice.22 Included in the agreement is the graduated wage scale eflttii�ns to be paid to the apprentice throughout the program, the required Corr►petency s.. hours and skills learned in on-the-job training and related technical The attainment of manual;mechanical or technical=skills instruction and performance standards.23 and knowledge as sped to by an occupational'stan " lord and'dernon5trated by an appropriate vsrntten and A registered apprenticeship program must meet government-man- hands-tin°proficiency measurern'ent.;; dated standards of quality and quantity of instruction." Further, 96urneywarker:1 A the sponsor must provide adequate and safe equipment and facili- A wwker!who.has attained a level of skill abilities and ties, and safety training for apprentices on the job and in related �K competencies recognized, 'ithln an rndustrry as having instruction. Most apprenticeship programs require 3-5 years of mastered the skills and competencies required for the training with between 2,000 and 8,000 hours of on-the-job train- occupation. ing and 144 hours of related technical instruction.25 Advancement h fin-the-lob Treirtrtg(01T). depends on the apprentice's work record and progress in related An outline oft. e;work processes in which=the appren instruction,26 tice will receive sup6Nisec work experience and training <onthe"job and"the altocationr� An apprenticeship graduate has completed a specified minimum io oe spent in each mator`,process. number of on-the-job training hours and related technical instruc- Related echnicat Instruction(RTI) tion S hours, and has demonstrated competency in the skills and �,,Ari organized art f systematic form of instructing` knowledge necessary for work at the highest standards.' Each pro- desigdesigned nedao provide the apprentice with knowledge gram evaluates apprentices regularly, usually every 6 or 12 months, of the theoretical acid tedanrcal'subleds"related.to= with both on-the-job performance assessments and written exams. his/her trade. Wage increases and continuation in the program depend on suc- ;"Source:Cade of Federal Regulatioq 79 CFR 179 labor.5tandards:Eor 2$ the Registration ofAppreniip8hrp Programs cessful demonstration of competency. Apprentices emerge from the programs proficient in safety and environmental laws and regulations, first aid and CPR, mathematics, drafting, blueprint reading and other sciences connected with the trade.29 Often included is training in diversity, sexual harass- ment, personal development, environmental remediation and.jobsite management.30 °U.S.Department of Labor.Apprenticeship.http://www.dol.gov/dolltopic/training/apprenticeshii).htm ao California Apprenticeship Coordinators Association.Apprenticeship:Pathways to Success.http://www.calapprenticeship.orQ/ Lerman,Robert,Lauren Eyster and Kate Chambers.2009.The Benefits and Challenges of Registered Apprenticeship:The Sponsors'Perspective.The Urban Institute on Labor,Human Services and Population.http://www.urban.org/UploadedPDF/411907 registered apprenticeship.pdf 29 CFR 29 "Labor Standards for the Registration of Apprenticeship Programs."Code of Federal Regulations. 29 CFR 29,op cit. 24 29 CFR 29,op cit. 75 U.S.Department of Labor.Apprenticeship FAQs.http://www.doleta.gov/OA/fags.dm California Apprenticeship Coordinators Association.Apprenticeship:Pathways to Success.http://www.calapprenticeship.org/ U.S.Department of Labor,Employment and Training Administration.At-a-glance:Three Approaches to Apprenticeship Completion.hhhttp•//www doleta gov/OA/pdf/Three Approaches Apprenticeship Program Completion.pdf IE U.S.Department of Labor,Employment and Training Administration.At-a-glance:Three Approaches to Apprenticeship Completion.htt[)://www.doleta.gov/OA/pdf[Three Approaches Apprenticeship Program Completion.odf 19 California Department of Industrial Relations,Division of Apprenticeship Standards.Minimum industry Training Criteria.http://www.dir.ca.gov/DAS/mitc.htm 31 California Department of Industrial Relations,Division of Apprenticeship Standards,op cit. Adams Information 7 of 65 t f € A 1 � C raft Years tan the ob h+ncrrrs § ? „Ltassranrn hlnrs ar _. .,_ Carpentry 4 4,800 144 i Electrician Residential, 3; 4 800 1 0 Corrlrrlercial/Industrial 5: 8,000 1bO Plumbing 4 7,200 200 a Operating Engineer 4: 6 000 r .144 ., Sheetmetal 4 6,500 160 Laborer- 23,000 .: 216 Painting & Decoration 3.5 7,000 114 Roofers 3.5 4 000 ., ,144 Plumbing 4 7,200 200 P,1r conditioning.&.refrigeration. 5 4 1,500 '215. Carpet, Linoleum & Soft Tile 4 6,400 160 Source:California Department of Industrial Relations,Division ofApprenticeship Standards.Minimum Industry Training Criteria.http://wwwdicca.gov/DAS/mitc.htm THE VALUE OF APPRENTICESHIPS Apprenticeship programs benefit the entire community by providing good wages, health insurance and career stability for dis- advantaged community residents. The stringent training also helps ensure high quality public works projects and cost contain- ment by decreasing turnover, workplace accidents and lost productivity. The Value for Industry Apprenticeship programs provide skilled workers trained to employer specifications, and lead to reduced turnover, improved on-the-job safety and higher FIGURE 1 PRIG AK PQNSORS REPORT THATAPPRENTICESHI quality results, according to a s study commissioned by the U.S. Help-meet-demand - Department of Labor.31 f_or skilled labor ' a- " The value of apprenticeship Reliably describe' training is extolled by the _waeketskilllevels- Construction Users Roundtable Add to'productiut}ror (CURT), comprised of some of high quality of service 1 ' the largest companies in the U.S., including Boeing, Procter Improve safety >t', & Gamble, General Electric, 41 and the U.S. Army Corps of HeI pwi'themployee Engineers. CURT recommends retention and recruitment that end users or owners require the contractors working for them 20 { . to commit to training programs Source tettnan,Robert Lauren Eystet and Kate Ctianihers 2DB9.`The Benefits and Challenges of'Registered,,.' as a re ualification for doin Apprenticeship:the Sponsors Perspedive:Ftie tlr6an lastitute on Lobar,Hurraan Services and Population. P q 9 s business.3z 3i Lerman,Robert,Lauren Eyster and Kate Chambers.2009.The Benefits and Challenges of Registered Apprenticeship:The Sponsors'Perspective.The Urban Institute on Labor,Human Services and Population.http://www.urban.orcl/Ui)loadedPDF/411907 registered apprenticeship.pcif Construction Users Roundtable.2004.Confronting the Skilled Workforce Challenge.White Paper 401. Adams Information 8 of 65 -H|PSSlN|TH H|���� /\���A�� VV/\��� ��ND P��h��TE / JOB �T���L|TYTH��U�H ���LL ��RT|F|�AT1�N �MOP I�T���UTY L ^ The Vaiue for Workers Most apprenticeship programs provide good jobs from the beginning, with fair wages, family healthcare benefits, apendon p|an, paid sick days, a safe work environment and employment stability. Program completion secures these advantages for an entire career. Wages and Career Stability Apprenticeships lead to careers with higher average wages and promote job stability through skill certification and portabi|ity. Apprentice wages start out as a percentage of the journeyworker hourly rate' significantly higher than minimum wage, and increase regularly ascompetency is demonstrated." As Table 2 demonstrates, apprentices in San Diego County begin at a basic hourly rate equal to more than $28,000 per year. Program graduates make a basic hourly wage equating to nearly $60'800annua!|y. Moreover, a certificate of completion signifies attainment of nationally and globally recognized skills." With the portability of credentials a worker can move between projects and employers with a documented set ufskills on their resume, thereby facilitating the hiring process and ensuring the correct pay rate commensurate with skill level. Many apprenticeship programs have formal agreements with 2' and 4'year colleges and universities which offer credits for the education received." A worker can use accumulated credits to pursue college degree later in life,facilitating transition to another career, if desired. O MsIll 1 St *Sourcc California Department wIndustrial Relations,Division ofApprenticeship Standards,Public Works Apprentice Wage Sheets. 33 California Department m Industrial Relations data for end ofzmm.Apprentice wage determinations INS= • « ` o "o« `« o o .•` o • « • ` o • ` « o « • -efirifflo lagc .•' . « « • «. • « « " « Contractors bidding on construction built ` • ,«- « -• `« « .•« - with public subsidy'must compensate all • ® E - : .•- E• - •E a «- " workers or"the•project equally, based on their,occup�ationat classification s6_Federal prevailing W, age was created in 1931 by'the E- « • •. E • • « Davis Bacon Act specifically.torprc test cam-, - munittes acid workers front the economic dis- • .•- -« > « - �• " •- • - • -. • - , - « - s •• ruption�caused bycompetitjon art ig fr©m non-local contractors coming inito art area ` ° ° " ° • ® " ° °` ® « and obtaining federal construction,contracts;,., by un. erbidding'locai wage�levels " ' Healthcare and Pension Benefits Many apprenticeship programs give workers access to health coverage and pension benefits, and when the program sponsor is part of a multiemployer trust, workers have benefits portability between jobs.47 Without that structure, the frequent job changes in construction can result in loss of health insurance and pensions, which generally are accessed through employers in the United States. Multiemployer plans are created through collective bargaining.With this structure, 83% of unionized construction workers had job-based health coverage compared to only 48% in the nonunion sector of the industry in 2005.411 Unionized workers are also 23% to 54% more likely to be in employer-provided pension plans.49 3a California State Labor Code,Div.2,Part 7.Chp.1,Sec.1771. U.S.Department of Labor.2002.Prevailing Wage Resource Book, 1112002.http://www.wdol.gov/dots/WRB2002.1)df "Tenbroeck,Craig.Vista:Unions seek to overturn prevailing wage ruling.North County Times.June 30,2009. and City of San Diego Council Resolution R-298185:A Resolution rescinding Resolution No.R-251555;and authorizing the advertisement of certain public works municipal affair projects as subject to state prevailing wage requirements.Adopted July 14,2003. 'Fiscal Policy Institute.2006.The Economic Development Benefits of Prevailing Wage. htto//wwvvfiscali)olicy org/FPI%2OPrevailing%2OWacie%2OBrief%2OMay%2006.pdf °0 California State Labor Code,Div.2,Part 7.Chp.1,Sec.1773. Q1 California State Labor Code,op cit.,Sect.1777.5(b). °z Mahalia,Nooshin,.2008.Prevailing Wages and Government Contracting Costs:A Review of the Research.Economic Policy Institute(EPI),Briefing Paper 215. httpa/www.ei)i.org/publications/entry/bp215/ 43 Petersen,Jeffery S.2000.Health Care and Pension Benefits for Construction Workers:The Role of Prevailing Wage Laws.Industrial Relations.Vol.39,No.2. " National Alliance for Fair Contracting(NAFC).2003.In Defense of Prevailing Wage Laws:Studies and Reports by The Experts. http://www.lecet.orci/Clearinghouse Public/LECET/NAFC/in defense of prevailing wage laws.pdf a5 NAFC,op cit. °G Philips,Peter Ph.D.1999.Kentucky's Prevailing Wage Law:Its History,Purpose and Effect.University of Utah. °i Philips,op cit_ °S CWPR-The Center for Construction Research and Training.2007.The Construction Chart Book.4th ed. Sect.26.htti)://www.cpwr.com/pdfs/CB%204th%2OEdition/ Fourth%20Edition%20Construction%20Chart%20Book%20final.pdf °O Mishel,Lawrence and Matthew Walters.2003.How unions help all workers.Economic Policy Institute(EPI).Briefing paper#143. http://www.epi.org/publications/entry/briefingpapers bpl43/ Adams Information 10 of 65 e • s o e Basfc H oily P• . o o ® Total.f Wage �o •. Hot4d Wages;F Carpenter $21.00 $3.95 $2.91 $3.30 $0.42 -0- $31.58 Electrician, Inside Wirernan ,;$18.90; $5.12, $2.83 -;0- $0.56 $0.16.. $27.57 Plumber/Pipefitter/Steamfitter $19.97 $6.02 $0.31 $1.79 $0.32 $0.39 $28.80 ;Operating Engineer $28:55' $7.95.,. $5.05 '.$2:82 - $0:5b -$fl"17 : $45.19 Sheet Metal $19.33 $3.42 $2.63 - 0- $0.68 $0.46 $26,52 Laborer: $19.01: $4:26< $0 39 $2.62 $0.64 $0 30" $27.22 Painter $14.21 $4.60 $0.15 $0.30 $0.34 $0.67 $20.27 Roofer $16"02'" $4 76 $1 62 ,", �, :`0 $(}.1" $0:20 $Z2.70 Heating, Ventilation $19.62 $6.38 $1.13 -0 - $0.70 $0.25 $28.08 &Air Conditioning** Carpel $ZO 01 fi,$6 00 $©94 $0.23 $0.45 $0 15 $27.78" r r , i•:, x e a D r s ^ra s r. a r + .r- # D1a p r - r re #° °sr .r• ' +sa .r- r # + r 8. s• r r ,...'"t E A.[.... £1 r ... £ ... r i 3 A t N 1 N G D EC' 9 b".'"", " ','* L.. 3 , -e..D 0 E VV ... $ .4 S _ 1 WENS _ , '° __ s `ice :. . Worker Safety Safety training is highly effective in preventing workplace accidents and injuries, which saves money. A survey of 8,000 construction laborers in Washington Def%nit'on found that health and safety training decreased the likelihood of workers' com Multlernplo)jet.tr rs pensation claims by 12%. Among workers ages 16-24, there were 42% fewer A benefits 61an'that covers the workers" .: claims." of two or m m ore�unrelated copanies accordance wit hsa collective bargaining Apprenticeships in the building trades provide certified and coordinated agreernent 50 In industnes where'seasonal' instruction in building and earthquake codes, environmental laws and or trregulaterrigloyment.and htg( latior `�° mobility-ate common�-like construction, safety, including hazardous materials handling and remediation.sa Minimum few workers woultl qualify under.6 apprenticeship training for all crafts must include safety instruction provided on-single:-company's plan due to, o etigibrlrty m the-job and in the classroom." In California, ost crafts require first aid, CPR, requi'r`eients s". tools and materials safety.ss , 0 Employment Benefit Research Institute(EBRI).2009.Fundamentals of Employee Benefit Programs.61h ed. http://www.ebri.org/publications/books/index.cfm?fa=fundamentals EBRI,op 61- sz Xiuwen Dong,Pamela Entzel,Yuring Men,Risanna Chowdury,and Scott Schneider.2004..Effects of Safety and Health Training on Work-related Injury Among Construction Laborers. Journal of Occupational&Environmental Medicine.46(12),pp.1222-1228. 53 California Department of Industrial Relations,Department of Apprenticeship Standards.Minimum Industry Training Criteria.ham://www.dir.ca.gov/das/mitc.htm 4 29 CFR 29"tabor Standards for the Registration ofApprenticeship Programs."Code of Federal Regulations. "California Department of Industrial Relations,Department of Apprenticeship Standards.Minimum Industry Training Criteria.http://www.dir.ca.gov/das/mitc.htm Adams Information 11 of 65 APPRENTICESHIPS SUCCEED BECAUSE LABOR AND MANAGEMENT WORK TOGETHER Due to the resources required to adequately train workers, the structure of sponsorship plays an important role in the success of the program. Apprenticeship programs can be sponsored by a single employer, a group of employers or a group of em- ployers in cooperation with labor. Sponsors plan the training, review apprentice progress, maintain the records of appropriate progress and pay for the program.5, The total cost can be $40,000 to $200,000 per apprentice, depending on the trade and length of apprenticeship. The sponsor must have the ability to hire and train apprentices in a real work environment. If the sponsors don't provide steady work, the apprentices have fewer opportunities to earn wages and thereby remain in the program. The Vast majority of California's Apprenticeship Programs are .Joint Labor-Management Joint labor-management(joint)pro- ` ° t grams sponsor the majority of appren- ticeship programs offered in California =California State ;Nurnbet dumber of Graduates` and graduate the vast majority of Certified Apprentice c1#Programs (lndividtials) apprentices. The sponsorship structure, Prs grants „r�, e, - 2002 d meaning whether the sponsor is joint or ° ' unilateral management, is a key mgInt ponent to the strength of a program. Asbestos Workers 2 I none 186 none Cooperation and a shared commitment BoIIerrnakers 1t none, 62 none to training unite employers and workers a Bricklayer 3 2 110 16 to create the success of joint programs. .Carpentry 25 .- 3`°: 4;449 337' Carpet, Linoleum 2 1 330 2 In California, 217 registered programs & Soft Tile train apprentices in 23 trades.Joint Cement.Masops 3, none- 520 "` none labor-management programs provide ; Drywall Lather 9 2 1,904 none 82% of those programs and offer train- Drywall ing in all trades. In 10 trades, only joint - Electrical&Electronic 29 _ 9v-_ 4,362 1 1"10 Elevator 2 none 617 none programs are offered. Engir%eer ` 4 3: 2,026 13<n A.. e#initions-, Glazier&Glass Workers 6 none 437 none r, IF Heating,Ventilation 8 2 53.2 246 Sponsor y Any person association committee or Aar.Conditioning or anizattoni'operatingan apprentice i Iron &Steel Workers 8 none 2,116 none ship groggrarn and in v+rhose Hartle the, Laborers;` 8 i 2 11,540 `, 56i program is(or is to be);registered or Lineman 1 2 324 37 approved Nlil}3rvriglt 2 none' 1$5 3 none Joint labor=management(}Dint) ` Painting& Decorating 5 4 1,033 66 Composed©f amp ual"nurnber of repre . P.)asterers non, rtatives of the employers)and of the44. 29 nn Plumbing 29 1 6 2,769 306 ernpiryees represented by a troira ftde ��collective bargaining agent(s)k Roofers 7 2 618 115j Sheet Metal 9 2 1,654 114 t7nitateral Surveytrr'` 2 none 482 noii An appreriticesh�p program sponsor without a bona fide ciilectrve bargainng Tile Layer/Setter 8 none 976 none agnf � Th Total 177 1 40 27,526 2,418 Source:`CadeofFederalRegulatrorrs 19CFR �� Percentage 82% 18% ° 0 2-9,tatror Standards far 9 the Registration bf 92/0 8/0 <- �lppreRt�ces3�p Prdgrams:r Source:California Department of Industrial Relations,Division ofApprenticeship Standards dataset.April2009. 56 29 CFR29"Labor Standards for the Registration ofApprenticeship Programs."Code of Federal Regulations. Adams Information 12 of 65 t 'O x 2 ' fi ' + r • r - r Joint Programs Have More Graduates and Higher Completion Rates Ninety-two percent(92%)of California's nearly 30,000 apprenticeship "FIGURE 2 TOTAL GRADUAT(GN graduates in 2002-2007 were from joint labor-management programs rt= (Figure 2). Since program completion is what secures middle-class ca- Califon la Construction Apprenticeship reer wages and benefits, the ability of apprentices to succeed is vital. Prograims Individual Completions by All Persons;2002-2007 " p Completion rates in joint programs are higher because they are more established and better funded, according a Government Account- ability Office report."Joint apprenticeship training trusts are funded Jomtlabor management ° through collective bargaining, meaning that member workers agree 27526grads ; to have a small part of their 'Untla2era! paycheck deposited by the [^] management `` [lefmi#ia 2 418 rods employer into the trust. 9 Completion gate . The"percentage of an apprentjceship" Joint labor-management cohort vbho receive,a certificate of programs use amulti-em- apprentjceship"coinpietion within one ployer structure,with several year of the projected comple#ion.date. FIGURE 3.'WMEN RADI tATES signatory contractors,to keep apprentices fully employed Apprenticeship Program Cornpietioni by " to fulfill their on-the-job training hours.Joint programs generally take Women fn Caljfornia,2003 2f}8{Irrcifvfduals) responsibility for placing apprentices with employers, rather than requiring the apprentices to look for work and experience intermittent ' Join#iabor unemployment.Through local chapter affiliation and portability agree- management„` ments, apprentices in joint programs keep their benefits and are more likely to find work in other areas with another local.'8 th7ateral '��maiagement� " Ninety-five percent(95%)of women and 92% of people of color 28 grads graduating from apprenticeship programs are in joint labor-management programs(Figure 3 and Figure 4).59 r, = ,;3 Joint labor-management sponsored apprenticeship programs have a PIGUREk MINORITY DUTIES N significantly higher completion rate(49%)than unilateral programs . :. " (33%)across the board. In many of the largest trades, the joint pro- Apprenticeship Program Completl�lns by g gram completion rates are 20-30% higher than unilateral programs Minorities In California;2003 2008(Ir� llvlduals) (Figure 5, Page 12).61 ` �8'�Io"` Jolrr�labor " �nlar�agemen# BARRIERS TO PROGRAM COMPLETION x1b798gradsy ilrrilateral Program sponsorship has two main challenges: failure to complete - `� management; the program and the loss of a trained worker to another employers 1 369gradsK or "poaching.1161 These problems increase the cost of training and threaten continuation of the programs. Dropouts Source for above figures:California Department of Industrial Relations, Apprenticeship programs are rigorous. It is full-time, physically Division ofApprenticeship Standards dataset.April 2009. Government Accountability Office(GAO).2005.Registered Apprenticeship Programs tabor Can Better Use Data to Target Oversight-Report to Congressional Requesters. htip://www.Qao.ciovinew.items/dO5886.[df ss GAO,op cit. . 9 Apprenticeship dataset received from the California Department of Industrial Relations,Division of Apprenticeship Standards,April 2009. eo Apprenticeship dataset,op cit. 61 Lerman,Robert,Lauren Eyster and Kate Chambers.2009.The Benefits and Challenges of Registered Apprenticeship:The Sponsors'Perspective.The Urban Institute on Labor,Human Services and Population.http//www.urban.org/UploadedPDF/411907 registered apprenticeship.pdf Adams Information 13 of 65 p D � 9 4 D 3 II i ■ D � � p � FIGURE 5:CALIF R [A CONSTRUCTION APPRENTICESHI P PROGRAMS COMPLETION',RATE ICY CRAB 2012 007:, ;Trap 10 crafts by number of graduates.Completion rate weighted average 80 '76°l0 78%77% 73°l0'.� loint laboi management 70 "Si62°lo . �M a UnilIV ateral'. 50 management. 50 47°% 48% '48% 42%' 40 37% 31% L- 28% h 29% 30 25°/n 25% 2S°lo 20 _ 3177-1 16% 0 m o w ..2 iC N ro ;O ;c in .d x= 10 Source California Department of Industrial Relations Division oW'prentueship Standards daiaset Apn/09" Methodology Most data used in this report come from.the.California Department ofindustifJ Relation_DiOsion':of .Apprenticeship Standards.One datase#listed individual program,, completions,by sponsor for gendet and ethnicity and was received at the,'end of March 2t?09 The other datasetlisted program completions by sponsor far al persons and was �.n received mid April 2009 leighted averages were created by rr u tiplying'to#al intake of apprentices for each sponsor for 2(302 20rI7•by average completion late after the 1st year„ The results'for each sponsored program wtthiri each trade were added together';This;totalwas then divided by total averageannual intake rate to end the weighted avenge far each trade by type of soc sod demanding work, with classroom instruction and studying after work or on weekends. It can be difficult to juggle time com- mitments or manage the stress of constant training challenges and evaluations. An apprentice needs both personal commit- ment and a support system to be successful.This is even more critical if the apprentice comes from an at-risk background. Social service or support programs within the community can help apprentices succeed by providing needed additional ser- vices, such as substance abuse or mental health counseling, childcare, or small loans for reliable transportation. Using assess- ments and case management to assist apprentices in identifying personal barriers to success and then connecting them to support services can address many of the reasons for dropping Out.62 The most commonly cited reasons for non-completion of a program were:63 36% —personal reasons(family needs, mental health or substance abuse problems, physical illness or legal issues). ® 32% — performance problems on the job or in the classroom. 30%—gained craft certificate or took another job before completion. "The Apollo Alliance,et al.2008.Green-Collar lobs inAmerica's Cities.Building Pathways Out of Poverty and Careers in the Clean Energy Economy http://apolloa I I i ance.org/down loads/greencol lariobsTpdf b3 Lerman,Robert,Lauren Eyster and Kate Chambers.2009.The Benefits and Challenges of Registered Apprenticeship:The Sponsors'Perspective.The Urban Institute on Labor, Human Services and Population,http://www.urban.orci/UpIoadedPDF/411907 registered apprenticeshio.ndf Adams Information 14 of 65 r $ # Poaching The loss of a trained worker to another employer, known as "poaching," can lead to underinvestment in an employer's work- force." In order to maximize profits in the short-term, some contractors may choose to hire others' apprentices or journey- workers rather than make the long-term investment to sponsor their own training programs.6s The focus on selecting the lowest bidder for construction projects can exacerbate "poaching." When bidding, contractors may cut training costs to reduce total overhead as much as possible and win the work. This fierce pressure to contain labor costs and undercut the competition encourages employers to poach workers from other contractors rather than incur the costs of training.66 Joint labor-management programs report less concern with dropouts and "poaching."67 Steady work, higher wages and health insurance may resolve many of the personal reasons for dropping out of a program.A steady paycheck at a family-sus- taining level may allow workers to pay for childcare or other assistance, while health insurance provides treatment for physical illness, substance abuse or mental health issues. Joint programs pool their training costs and resources, creating a "fair playing field" among union contractors,thereby negat- ing the disincentive to provide training and the incentive to poach.6, ea Organization for Economic Co-operation and Development(OCED).1994.The OECD lobs Study:Facts,Analysis,Strategies. http://www.oecd.orci/dataoecd/42/51/1941679.i)df es Kotler,Fred.2009.Project Labor Agreements in New York State:In the Public Interest.Cornell University Industrial and Labor Relations School,Cornell University. ee Kotler,op cit. F'Lerman,Robert,Lauren Eyster and Kate Chambers.2009.The Benefits and Challenges of Registered Apprenticeship:The Sponsors'Perspective.The Urban Institute on Labor,Human Services and Population.htto://www.urban.org/Ui)loadedPDF/411907 registered apprenticeshipjA as Kotler,Fred.2009.Project Labor Agreements in New York State:In the Public Interest.Cornell University Industrial and Labor Relations School,Cornell University. Adams Information 15 of 65 # tl tl M 8 0 W M 0 6 w NECESSARY POLICIES TO SUPPORT APPRENTICESHIP PROGRAMS The success of apprenticeship programs in creating middle-class careers depends on supportive public policies. Effective policy options include funding the programs and support services, requiring contractors to pay prevailing wage and hire apprentices on more projects, and enacting responsible contracting L b initiorh standards. i2esponsable rontracttng pottaes Career Ladders - Pathways out of Poverty Prohibit public cantracting•with,employers who violate workplace tax or.other,laws They can also,provtde-a A career ladder or pathway out of poverty is a succession of training ".mechanism to fauor"employers"who�provide good jobs and support systems that prepare workers for a series of jobs with in- good wage's an"'cli benefits;a safe workplace=and, creasing skill requirements and compensation, providing a bridge from comply wtth workforce stantlards.E9 unemployment or dead-end jobs into middle-class careers.i0 Career ladders focus on community members who traditionally face multiple barriers to employment—low-income, people of color, women, unemployed, homeless, ex-offender, returning veterans or those lacking a high school diploma or GED. A comprehensive career pathway links job seekers, employers, community organizations, educational institutions and the workforce development system, creating "wrap-around" services." Apprenticeship is a key step. Recruitment and Case Management Community-based organizations and workforce.development . providers help connect community members with career ",STEP UP-THE CO'S U ftO CA E R L t}D R;- pathway programs. They provide skills assessments, identify Middle-days careers participant needs and coordinate support services. Some ; community members need case management assistance along the entire pathway out of poverty. Case management assistance is often necessary for ex-offenders or youth, those I Hard skills •union apprenticeship •Pre-apprenticeship with a history of substance abuse, or to help low-income people remain qualified for assistance until they become stably �� •Communtty;calleges - employed.72 Soft skills Nan-profit orgarnzatio' ns;" Soft Skills .Workforce development i Recruitment Nonprofit organizations and community colleges provide soft and case service providers skills, including job hunting skills,workplace etiquette, commu- management •Community-based organizations nication skills, conflict management, as well as assistance with obtaining a driver's license or GED.'a - Community members Hard Skills People of color-(ow-income,,at risk youth veterans under employed unemployed forrrierly trtcarterated Nonprofit organizations, labor unions and employers provide the actual on-the-job skills training for careers through pre- Adapted from The Apollo Alliance,eta{2008.Green-Collar lobs inAmencasCities: apprenticeship and apprenticeship programs.74 Building Pathways Out of Poverty and Careers in the Clean Energy Economy. E'Soon,Paul K.and Tsedeye Gebreselassie.2009.The Road to Responsible Contracting:Lessons from States and Cities for Ensuring That Federal Contracting Delivers Good Jobs and Quality Services.National Employment Law Project(NELP).htip://nelp.3cdn.net/fdlc66786fb98867e7 idm6brs81.pdf Mitnik,Pablo and Matthew Zeidenberg.2007.From Bad to Good Jobs?An Analysis of the Prospects for Career Ladders in the Service Industries.Center on Wisconsin Strategy (COWS).http://www.cows.or /aq bout publications detail.asp?id=399. and The Apollo Alliance,et al.2008.Green-Collar lobs in America's Cities:Building Pathways Out of Poverty and Careers in the Clean Energy Economy.hhttp://apolloalliance.orQ/downloads/Qreencollarjobs.pdf "The Apollo Alliance,et al.2008.Green-Collar lobs in America`s Cities:Building Pathways Out of Poverty and Careers in the Clean Energy Economy. - http:/fapolloa11iance.orci/downloads/Qreencollariobs.pdf 72 The Apollo Alliance,et al,op cit. "The Apollo Alliance,et al,on cit. 4 The Apollo Alliance,et at,op cit. Adams Information 16 of 65 Careers Graduates of apprenticeship programs become journeyworkers.With increasing experience and continuing education, many later become foremen, supervi- Refrptior sors or contractors. fi.. aPr apprenticeship ;' ; A program that provides None of this is cheap. •' °' • * ° contextualized training in,the basic Providing the diverse skills used in the services necessary for mov- ,;prepares students for entrance,intq ing an at-risk community an apprenticeship>prograrrt.Many member to self-sufficiency 3: gnti ro tarns train any smaller a less; • • + `a ° - p requires resources. Some complex construct prdlects,such $ • ° + -. + . ° funds come from govern- as a mod el'structure on the program . a o site,or.ira residential wea"therrza#ion.:,_ ment programs and others of community homes. through nonprofit or charitable organizations. Regardless, programs like these need both policy and financial sup- port, especially in today's economy. Local Hire Requirements tents On-the-job training is the main component of the apprenticeship ` ` + + • ° system. Each apprentice must stay fully employed to complete their program on time. Therefore, a shortage of jobs limits the availability - of apprenticeships for community residents. + •+ - - . # ++ . . ; ° + + Local hire policies provide local jobs and also incentivize the creation ' ' ' + ' • '+ ` ° " of career ladders by moving community members into apprentice- ship programs and into middle-class careers. Local hire policies - require that a certain number of journeyworkers and apprentices who are residents of the local area to be employed on development + : • ° projects. Many local hire policies also require a set participation rate • ¢ a�' by "at-risk" residents or living in poverty. Local hire is a concrete •• ° '°` mechanism to ensure that the investment of public funds into the community helps low-income residents.711 A successful example of local hire policies in action, the City of Los Angeles implemented local hire after an audit of the 1996 City Hall + °- + + + ° •° renovation project showed that less than 2% of project work hours were performed by local residents.79 The City's Department of Public ° • • ° Works now requires that 30-40% of project hours be performed by ` ` ''- City residents. Because of that policy, $41.5 million has been rein- vested in the City through the estimated wages and.benefits paid to 21600 local residents and 2,300 apprentices employed on nine Public Works projects.80 5 Los Angeles Unified School District.We Build.http://www.laschools.orci/contractor/webuild/and "We Build"Program Update&UCLA Labor Center Study Summary.Facilities Committee Report.March 5,2009.Received from We Build program upon request. 7E Los Angeles Unified School District.We Build.http://www.laschools.orQ/contractor/webuild/ 17 Information from the Century Community Training Program website.http://www.centurycommunitZraining.org/ 78 Kathleen Mulligan-Hansel,PhD.2008-Making Development Work for Local Residents:Local Hire Programs and Implementation Strategies that Serve Low-Income Communities. Partnership for Working Families.hitp://www.commu n itybenef its.orcildown loads/Ma k in %20Development%20Work%20for%20Local%20Residents.pdf "City of Los Angeles Bureau of Contract Administration,Project labor agreement documents posted online.http://bca.lacity.org/index.cfm?nxt body_local hiring.cfm so Manny Perez,2009.Local Hire in the City of Los Angeles.City of Los Angeles,Department of Public Works,Bureau of Contract Administration.Presentation to the San Diego Unified School Board,Januar 2009. Adams Information 17 of 65 D l i R D 3 ■ t ® d i z � 4 Good Jobs in the Green Economy The green economy is large and growing rapidly.Ac- cording to the American Solar Energy Society, renew- able energy and energy efficiency generated $970 billion in revenues and 8.5 million jobs in 2006.81 By 2030, ASES estimates that 1 in 4 U.S.workers will have jobs involving renewable energy or energy efficiency.82 With that much of our economy at stake, policy deci- The Green Training Trailer is a mobile classroom that travels nationwide teaching union apprentices the latest in green technologies in the plumbing, sions are needed today to ensure high-road, middle-class heating and mechanical trades. careers for the future. Increasing numbers of state and local governments and agencies are addressing climate change through requiring buildings to be certified "green" and to increase use of renewable energy.The City of Los Angeles,for example, does both.All new buildings over 50,000 square feet must be LEED certified, City buildings over 7,500 square feet must be retrofit to LEED Silver standards and the Los Angeles Department of Water and Power has an aggressive solar incentive program.8' Achieving maximum energy efficiency requires a "whole-building" approach and correct construction and installation.84 Indus- try analysts recommend certification of contractors.as a means to ensuring proper installation.85 Apprenticeship training already incorporates green skills and provides the workforce certified in these skills. Together with a strong foundation in skills of the trades, apprenticeship graduates already are well prepared for most green economy jobs. For example, solar electric systems require electrical training and licensing, and solar water systems require training in plumb- ing.86 Apprentices in the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry(UA) learn how to be green plumbers.81 In the 32-hour, LEED-approved course, apprentices receive training in water conservation technologies such as gray, recycled and wastewater treatment; solar hot water systems; reducing the energy consumption of heating and cooling appliances, and performing energy and water audits. Weatherization Pre-Apprenticeships beft rifon,1 ; For the last 32 years, the Department of Energy Weatherization Assistance Leade'rshii tp r Ene cUy and Program (WAP) has helped low-income families permanently reduce their energy Enuircinentat Eiesin (LEED) bills by making their homes more energy efficient.8" Basic construction skills are A 9reerj burldrng certification system used to address comprehensive energy usage, water consumption and related pr°vtdrng tltrd;-party verifrcatrori that a ltutldrn„g or community was designed aril health and safety improvements. Weatherization workers seal leaks, replace or built using strstegiesafrned at.trnprovmg- repair windows, add insulation and repair duct work, upgrade heating and venti- performance and stewardship of lation appliances, and install water-saving devices, among other tasks.89 resour es and sensitivity to their mpacts.92 ` Since weatherization uses the same basic skills as many of the construction crafts, it is a perfect fit for pre-apprenticeship programs. Community-based organizations and the Laborer's International Union of North America (LIUNA)are creating programs to train community members in weatherization as a pathway into ap- prenticeships and out of poverty.90 Moreover, the American Recovery and Reinvestment Act(ARRA)includes commitments to weatherizing 1 million homes and requires payment of federal prevailing wage to workers.9' Combining ARRA funds for the WAP program with pre-apprenticeship programs will provide good jobs at an early stage of the pathway out of poverty. 81 Bedzec,Roger.2007.Renewable Energy and Energy Efficiency:Economic Drivers for the 21st Century.American Solar Energy Society(ASES). http://www.ases.org/imacies/stories/ASES-JobsRei)ort-Final.odf sz Bedzec,op cit. 63 City of Los Angeles,EnvironmentLA.New Green Building Program.htto://www.lacity�org/ead/environmentla/ureenbuilding/newgreenbuildinQ.htm and City of Los Angeles.Green Retrofit and Workforce Program Ordinance.Administrative Code,Div.7,Chp.3,Art.5. 84 U.S.Department of Energy,Energy Efficiency and Renewable Energy.Building Technologies Program.Commercial Buildings.ham://wwwl.eere.energy.gov/buildings/commercial/ whole building approach.html and U.S.and Green Building Council.LEED Rating Systems.http://www.usgbc.org/displaypage.aspx?CMSPage[D=222 85 Choi Granade,Hannah,et al.2009.Unlocking Energy Efficiency in the U.S.Economy.McKinsey and Company.http://www.mckinsey.com/clientservice/electricpowernaturalgas/ US energy efficiency/ sa Op Cit.and Pollin,Robert,Heidi Garrett-Peltier,James Heintz and Helen Scharber.2008.Green Recovery:A Program to Create Good lobs and Start Rebuilding a Low-Carbon Economy Center for American Progress(CAP)and Political Economy Research Institute(PERT).http://www-americanprogress.org/issues/2008/09/pdf/green recovery.pdf S'GreenPlu bers,�S� Greep Plumbers Course Information.http7/www areenplumbersusa com/training-accreditation/course-information/#climatecare A�ams inormation 18 of 65 • R 0 # t R R�i # Q k i � �� `' SUMMARY Completion of apprenticeship programs creates household self-sufficiency rather than a reliance on taxpayer-supported services. Construction workers are also consumers and taxpayers, so their wages and benefits are reinvested in the community as bills and mortgages are paid, local shops are patronized and workers have the time and health to participate in church, schools and other civic associations. Creating more local jobs for apprentices is the key to a strong local community. Rebuilding the economy means creating and supporting high-road, good jobs through policies that train and reward workers for their productivity. RECOMMENDATIONS 1. State and federal "related technical instruction" funding for apprenticeship programs should increase, and funding should be provided for pre-apprenticeship and support services programs. 2. Projects receiving government subsidy should employ apprentices from registered programs at the highest allowed ratio for all trades. 3. Projects receiving government subsidy should utilize local hire policies that target low-income and/or disadvantaged workers through quality state-certified apprenticeship programs with a proven history of graduating apprentices. 4. Public contracting should give preference to responsible contractors and apprenticeship programs that provide health- care and pension benefits and OSHA safety training certifications. 5. Public contracting should utilize policies that reduce reliance on public assistance and that provide economic benefits to the community. E6 U.S.Department of Energy,Energy Efficiency and Renewable Energy.Weatherization Assistance Program.ham://apgsl.eere.energy_gov/weatherization/ U.S.Department of Energy,Energy Efficiency and Renewable Energy.Weatherization Assistance Program Technical Assistance Center.Core Competencies Document. http://www.war)tac.orQ/sp.asQ?id=1818 90 Laborer's International Union of North America.LIUNA BuildsAmerica.http://www.liunabuildsamerica.org/weatherize and MAAC Project.Green Career Opportunities. httn://www.maacprojeci.org/Weatherization`/`2OTrainee%20Program °'Recovery.gov.The Act.hitn://www.recovery.Qov/?g=content/act and U.S.Department of Energy,Energy Efficiency and Renewable Energy.Weatherization Assistance Program. http://apps l.eere.energy.gov/weatherization/ `z U.S.Green Buildin4 Council.Intro—What LEED Is.http://www.uscibc.orQ/Disi)lavPage.asi)x?CMSPaqelD=1988 Adams Irttormation 19 of 65 APPENDIX; WORK DESCRIPTIONS AND ENROLLMENT REQUIREMENTS FOR SOUTHERN CALIFORNIA JOINT LABOR-MANAGEMENT APPRENTICESHIP PROGRAM OCCUPATIONS 7 TRADE DESCRIPTION,OF WORK REQUIREMENT'S Allied Workers Applying thermal insulation to pipes, Min. 18 yrs.old, H.S.diploma or GED,certified copy of birth ducts, boilers, vessels, etc.,throughout the certificate, CA ID, &SS card. Must pass math, English,& commercial and industrial industries. physical. Boilermakers Buil&&repair boi,l ers,tanks, pipeIinesold,MinI.I 1 ,yrs " S.` I diploma or GED. Dr ug ug1test refineries Bricklayers/ Build with masonry materials, bricks, blocks, Min. 18 yrs. old, CA ID &SS card. Drug test. Stonemasons stone, &marble. Carpenters Erec 0 M I in. 174 tw od framework in buildings, build yrs old w/parental consent,gooq-PhysicaVcbnditi6h ,,:forms for concrete,ll CA erect r)artitions,,,,,stud's,,,,, &mechzinicavaptitude necess -"A CA &5�`ca ary�Also C r joists,'&rafters.. Drug test." Carpenter-Acoustic Installs a variety of factory produced systems& Same as for Carpenter listed above. Drug test. Installer construction material in commercial buildings &public structures. Cement Mason Finishes concrete surfaces of fl&,rS,was, Min' H.S.diploma or GED,good physica streets,driv6wziys;;sidewaIks, curbs, &, ,`gutters.,_- c clitioiji,";'C ID<&SS card Drug test orrn�&sets f &screens f's orall of the above. : Assists Jn preparation ,grading,for pouring,& , I old roweling remova of 6 ohcrete��:bperai�s t h machines,&cirin ers— N Drywall Finisher Prepares drywall surfaces for painting. Min. 17 yrs. old w/parental consent,CA ID, &SS card. Must Individual must sand, prepare,tape, &do have good physical condition &no fear of heights. Drug test. touch-up using hand applied operations or machine applied systems. W -Fints er�ai a above Lather Erect's vvd6d'<or-metaI'frai'hing, fastens"Iffi—eta I Dr, all 56.1i"'e as:16(, k 6 �h&h'66&,to have goo studs,'metal Path,&drywall,wit. tie wires mechanical aptitude Drug g test, screws;-nails, clips,,&st6ples.-Work is,,most! a in oors&in-,high places.' Electrical Apprentices perform all aspects of electrical/ Min. 18 yrs.old, H.S.diploma or GED, CA ID,SS card,& telecommunication wire tasks in commercial, good physical condition. Must show proof of successful industrial, &residential construction. completion of I yr.of H.S.algebra or I semester college algebra&provide sealed transcripts. Must have reliable transportation. Math&aptitude exam given and drug test. Elevator Aptitude,A'e`s­t-'&,_'�,'� lev�,ior.c6n-strLictors:,.:-.,',Install&maintain," 6vat'ors� Min diploma GED. personal ntervievr. I Floor Covering Apprentices learn to prepare sub-flooring Min. 18 yrs. old, CA ID, SS card&good physical condition. &install new, resilient flooring &carpet Drug test. installation. Glazing. ..... 'Re Requires th6:use:of hanc,,t,obls,eldctri� Min 18�`,yrs o,ld ' )r GE&,6"alifi ID S card rills;electrc metal saws;&glass polishing" good physical��ncitio ,Appints sui&6& we od'it.Also re 61 ­d' clotting, .-. . equipmer, requires ueprint,rea ing,, _ issues Drug test -c,,, ing;, -ing cutting &process. glass""of a I sizes,W6rk'-is,',�k various:heiqhts on�,, -p, ladd ers&,scaffol cls.: Ironworker Apprentices are employed in four related Min. 18 yrs. old, H.S.diploma or GED, CA. ID, SS card, segments of the trade: Structural Ironworker, &good physical condition. Must have own reliable E1zMzz=1 MENNEN= Reinforcing Ironworker, ornamental transportation. Drug test. Ironworker,or Riggers&Machine Movers. Laborers;' s, Su service for,con rete a J�'in,stancarj'�v'alu'afibin'&good ph,,y§ica,condition.Dr_bgp , 4 a ape -minin Ak,I nds� ;:pipe ines;,masqn, iry, g' test , 4 _411EIM.; 4 MEMO= MIUMEM i @ i B s 9 E e s g s A Y • i E II ♦ '� A q • k JRADE DESCRIPTION OF eREQUIREMENTS Landscape& Apprentices acquire proficiency in layout, Min. 18 yrs.old, H.S.diploma or GED and good physical Irrigation installation,and testing of irrigation systems. condition. Drug test. Fitters Also requires use of hand tools,power tools,and construction equipment related to the trade. Millwright: Apprentices install&,per#orm"mairitenance.•on Min. 18 yrs old;;go66physical condition"a,nd mechanical machinery"in factories 8 on precision work in " ':aptitude,-pecessary. Drug test and pbysical exam.- nuclear power plants " Operating Engineer: Apprentices are heavy equipment operators Min. 18 yrs. old, H.S.diploma or GED, and strong physical &mechanics for major projects using rock, condition. Must pass 3 part test:verbal, mechanical&math gravel, sand, or dredging operations. skills. Drug test. Painter Apprentices prepare surfaces&apply paint Min 17 yrs o[d W/parental consent and good physlcaf working on floors;wal►s,celI ngs,"&equipment condition.Trans66rtatlo'h required.Drug test. in&outside of buildings:Paint is usually applied via brushes spray"guns,.or„rollers." ` Pile Driver Apprentices work in the early states of Min. 17 yrs.old w/parental consent, good physical construction by driving metal,concrete,or condition, and mechanical aptitude necessary.Drug test. wood pilings into the earth for base foundation. Plasterer Apprentices gain knovvledge skills;& Ji. Min 17 yrs old w7 parenta consent functional reacfIng techniques required for,the plast2r,ing Industry ':,"writing and mathskills requiredAtso,mustnot have fear Skills include:applications of scratch&;brown of heights orkhartlphysrcal3laborlrug test coats finish coats,as well as maintenance &operation.of equipment;machine applied ` Ptaster&`acoustic?materials ' ��. ..' �.. Plaster Tender Tending plasterers in all aspects of interior Min. 18 yrs. Must have a CA drivers license, SS card& &exterior plaster,fireproofing&EIFS reliable transportation. Physical agility,oral interview&drug applications, scaffold building, pump&mixer test. operation of forklifts&other mechanical equipment. Plumber:&Pi efitter A rerifices learn:all as ects'of "lumbiri and rlVTin 1,8 yrs:old H S dt"!om or GED wl sealed t arescri is pP p P g Y p p fi plpefitting for coriimeraal,industrial and" valid pnoto lQ and bath certificate Must pass aptitude test residential construction.'" at cormunity c©I{ege&tfrug testa b Roofers Installation of all types of roofing including Min. 18 yrs.old,valid photo ID,ss card, and ability to lift slate,tile, &composition.Also includes 100 lbs. Functional reading,writing, and math skills needed. waterproofing. Drug test. Sheet metal Apprentices lay out cut,"form,,fi bncafe ;' Min ,18 yrs cild H.S tllpli ma d'1- ,,n goad'physKal assemble;&install sheet metal items Tfiis condition Must pass community college math test&drug trade works.from'blueprints, lays out the"work, test cots and forms the metal,'then welds bolts rivets,and solders as required r Surveyor Surveyors use advanced math to determine the Min. 18 yrs.old, H.S.diploma or GED,strong algebra and proper location of property lines and various geometry skills, and good physical condition. Must pass field&construction survey work. Measure algebra&geometry test&drug test. elevations&distances for preparation of maps showing land surfaces, boundaries, &legal descriptions of property. . w -,Teamstef= Dnving.iock ziuck5�water`irucks,flatbeds Min "18 yrs for�!�r"arehouselcomrnerltal vefflc[e Min 20 yrs. semi tractor trailef&dump trucks for a loss A or Bhcerrst?sirrving position Dn g test. Tile Setters Preparation and installation of tile. Min. 18 yrs. Source:Sa� t 0fT91igrtonstruction Trades Councit.2008.Apprenticeship Matrix. httoa w lwwsdbctc.org/Apprenticeship.htmi 21 of 65 �i lid' 4 r �, j1p fi 1.. W 41 lia c k s ��a Center on Policy Initiatives The Center on Policy Initiatives is a nonprofit research and advocacy 3727 Camino del Rio South, organization formed in 1997 to address issues affecting working people. Suite 100 Through research, advocacy, public education and coalition-building, San Diego, CA 92108 CPl promotes policy solutions that guarantee access to quality 619.584.5744 healthcare, ensure development meets community needs, and www.ontineCPI.org combat economic inequality. I Adams Information 22 of 65 STUDIES OF THE EFFECTS OF PREVAILING WAGE LAWS Prevailing Wages and Government Contract Costs: A Review of the Research,Nooshin Mahalia, Economic Policy Institute, 2008 Findings:A growing body of economic studies finds that prevailing wage regulations do not increase government contracting costs.These studies also show that prevailing wage laws provide social benefits from higher wages and better workplace safety,increase government revenues,and elevate worker skills in the construction industry. Link: litth:/!'w���r.cpi.oruhlicationsientn_�bk2 t i Quality Construction—Strong Communities: The Effect of Prevailing Wage on the Construction Industry in Iowa,Peter Philips,Professor of Economics,University of Utah,2006 Findings: Prevailing wage regulations increase training,productivity and wages. Prevailing wages do not raise costs. Prevailing wage regulations encourage quality construction. In the 31 prevailing wage law states,there is a higher rate of apprenticeship training.Without prevailing wage requirements,nonunion contractors cut their bids by jettisoning training costs. After Kansas' repeal,apprenticeship training fell 38 percent. Link: c�ail i ita<*ecoi�ncil.or� ? a id==24 Lessons for post-Katrina Reconstruction.Peter Philips,Professor of Economics,University of Utah, 2005 Findings:In the case of the Northridge earthquake,there were two benefits from hiring more skilled workers within Davis-Bacon rules.First,their higher productivity per hour largely offsets any difference in labor cost per hour. Second,they can finish the rebuilding more quickly. It is penny-wise and pound- foolish to suspend the act for Gulf Coast reconstruction. Link:xv-�,,\\.e i_orQ/r)ublications,/cntr-,lbp1661 des.Productivity and Highway Construction Costs,Updated Analysis,Construction Labor Research Council, 2004 Findings:A study of highways built from 1994 through 2002 showed that when workers' skills and productivity justify higher wage rates,highways can be built at a lower cost per mile than when lower skilled workers are employed.l4igh wage states showed a$30,000 per mile savings in construction costs compared to low-wage states. Link: x%\Ny .buildri.org!contcntm�Trs /si�o��_dctails.php;`id�20O 4 The Adverse Economic Impact from Repeal of the Prevailing Wage Law in Missouri. Michael Kelsay, L. Randall Way, Kelly D.Pinkham, Department of Economics,University of Missouri, Kansas City,2004 Findings: The repeal of the prevailing wage law would cost the residents of Missouri and their families between$294.4 million and$356.0 million annually in lost income. The repeal of the prevailing wage law would cost the State of Missouri between$5.7 million and $6.9 million in lost sales tax collections annually. The repeal of the prevailing wage law would cost the State of Missouri between$17.7 and $21.4 million annually in lost income tax revenue. Link:ixNNix .smacna.or-,/le islatixe/missouri.i)df Adams information 23 of 65 Four Biases and a Funeral,Michigan's Prevailing Wage Law.Peter Philips, Professor of Economics, University of Utah, 2001 Findings:When you eliminate prevailing wages,you eliminate training;you cut capital investment;you cut wages,and the labor force becomes younger,less experienced,less formally educated and more reliant on non-citizens. In the 1980s,Colorado,Idaho,New Hampshire,Kansas and Louisiana all lost construction jobs after repealing prevailing wage. Link: NxxvN :faircontracting_or&NAFCneNxsite/prevtilin(N-,°aye/neN,_/fow-biast)df Do Higher Wages Raise Labor Costs?Bob Gasperow,Construction Labor Research Council,2001 Findings:A 14 year study of highway construction found that because of the payment of prevailing wages,more skilled workers achieved a cost say_ inQs of$123,000 per mile_ Skills and productivity,not wage rates,are what finally determine actual costs. There is no basis to the claim that lower wage rates result in lower construction costs. Link: wxv-,v_faircontractiiip- orb/NAFCnewsitc/prevailingxNa�c/ne,,x/x,,ai�esi)roductivitNPdf Kentucky's Prevailing Wage Law,Its History.Purpose and Effect.Peter Philips,Ph.D.,Professor of Economics,University of Utah, 1999 Findings:High wage rates,if they induce higher labor productivity,can actually reduce labor costs as a percent of total costs. Low wage rates,if they mean a loss of skills,can result in higher labor costs as a percent of total costs.A study of 6,000 school construction projects in the 1990s found no relationship between prevailing wages and higher costs. Link: NywNN;-prevailinQwave.org//pdf./k-entuck..- reNN ,c._rdf The Effect of State Prevailing Wage Laws on Total Construction Costs,Mark Prus,Department of Economics, SUNY,Cortland, 1996 Findings: There is no measurable cost difference between similar structures as a result of prevailing wage requirements. Consequently,reforming or repealing these laws will not lead to the kinds of substantial savings promised by proponents of repeal. Prevailing wage attracts workers with more experience and training,increased productivity offsets the costs of higher wages. Link: ���N�N faircontractinz.or NAFCn4:site/prcvailinywaceineir/effects davisbacon.vdf Prevailing Wage Laws and the California Economy,Michael Reich,Professor,Institute of Industrial Relations,University of California,Berkeley, 1996 Findings:Reducing prevailing wages,as the Wilson Administration proposed,would have greater harmful effects in California than in other states,would lower tax revenues,reduce productivity, reduce worker training and job safety,and slow California's economic growth.Reducing prevailing wages would cut sales and income tax revenue to the state by a combined$800 million' Link: N,,-M_btiildinec3.com/doc.asr)?id=170 Losint Ground; Lessons from the Repeal of Nine"Little Davis-Macon"Acts Peter Philips,Garth Mangum,Norm Waitzman,Anne Yeagle, University of Utah, 1995 Findings:The repeal of prevailing wage laws resulted in lower wages for all construction workers. This caused the government to lose substantial tax revenues. Cost overruns are a hidden cost of repealing prevailing wage laws. Example: Utah's construction workers lost$58 million in income after prevailing wage was repealed,resulting in a tax revenue loss to the state of$8.2 million.If the federal Davis-Bacon Act were repealed, income tax collections would fall by at least$1 billion per year in real terms every year for the foreseeable future.This is because construction wage levels would decline across all states and—based on the experience of the nine repeal states—construction employment levels would not rise enough to offset this revenue loss. Link: ,,%tvw.faircontractin orvIN.AFCneN�_site/ rp evailingtva_Re/neNv/losing_ground.Vdf Adams Information 24 of 65 k . € syt s � I £„ a E t r � hi INE z c!s 3 F zs , a�`s ..'�S ,z MW All y. ' _ r~ €k �£ •Lr Val IV WA MI vI JIM s e££ S x k .;� 3£ i n�*. 't °a .s ✓ 1 £ Wyk, . -7 ZRI ti .' <9 sir AF. • - `ma's ll Vq al v 5d 3 61 34 41, > . c✓g j� �Iu1 e ��. QY 1-7 son al wAlle vyy Vgs ? fir Wff Ave ,g � € n 4 lot lAM, R I Eel � , 44 a§' i a t �j ti +' x a1 € e till € y G -q'• 'l - 6 $ 3� , oil;1 ,�a ,� 2,1 is g %Nw- � "-`K K, - POW so Z` oil 'sea ;ATQ a € " -_ 1 �� '>��NSF•5 � ��-�� � �� �"? hT �` �� 2 K A t li f MIN M; - " yS : _ gam .•, • • .€ j E i a DAMS-BACONbIll SUMMSS , 1A,"hen the Northridgeearthquake rocked vwthern CaliforMa to carl=,- 1SYA it had a devastating imp act on the 4 �� �, .� ,rate,s economy andinfrastructure. One the buStestroad- Ways, t"l Monica liar 'ally, tllp -. :. -$Q-q }. 1y,gp-�-�a record F+S eq 'S pjg gyp"+}' Ag9,,c l g q g $y y+ R3e�i`" � La within 2'&rF3 KB�.°,i» # :!x+" f$'S93 after �a $��'Fw'£ ''C ` g cua - -the crippled freeway was reopened to traffic.How fir did t1us ha��l.i n� nexperienced ontract, °��-)r r - �t A, k � � K Y in �r theState o ali rnl called on highlyskilled work, Mi ule and under budgeL j at does this have to do with prevailing w g s � � � � the a s-Bac n ,� t' t ' J n actor, t rlief t project managers and g of �s ° a3. % �lcn c ag la werevital -it) this successy The way AM- of able it) hid the job knouinghe could draw firoln a pool well work try�t the n dart . S -414 By hdping to niaintaina decent standard Of livill U-Mon and r'(")n union workers-alikT, A_ d a stabk econoury,for Quality t, ction depends nn well- d n �� titan worker . Workers experienced in their crag and in N health and safety procedures are less likely t 1 any , are n r produ tip` , t .;m� g p So t -),in the wake othe lah . attyy :ern ng, W. -Sid lled construction wrorimrs-%vre called to the site ini dt- t ly to dear away rubble and search for victinas tit the d r- >r � al building. Because they knew Tat they were dog �, thus � � K � � � t workers caused no frtlt r darnageand Nvm not 1 k� darn n hazardous rescue o r . It sho ldn't take: a disaster t.)r us to rect the li n t 2 l a w n het. r 1a t �t are l� round us - l h += _ fro r � and l pt al t t h a t m,�. well-constructed t rjwater treatment planer. Su often . taken for granted,result in part from a ` -Bacol's Prot ti n of prerallirig wags and la or standards nationwide. r aA y t Here's s another success stoat, g a n at .n nee to, � 3 ofl w ells inLouisiana's Pad x ut=J. R Sanctuary,building. AWN � A tn corn stradt con e r ing prev l W!",_M� pl ted the job without _harming surrounding dlt - ° t a. I f rma i PREVAIL! �. P5 ARE GOOD FOR AWERICA y y r y r y dmls, dec�� and fish- -In tht 26_()W-aae refro ge, It was I C-a] tht'. work not disan-In the cokvical tranqnifin,of the Nation�,! imix)rtant U) pi oducc 'ok-; ft-)r iwarl m- communities, flk -'e, () he pre- f .111,,ng wair �s I law", he 'best I)f- sible,%vorkers !ot flie j(A). e= nd Xv "Ilm xv 'IN -nd ianvw ­1 coml,'dex just,ccleh--ar- J v 'It's "IS a U1,11)Ute U) flied conitraction, wmkers. pro- iected b-v fllvl�_Bneon DAVIS-BACON IS 1711pof-hint to allAmericans P11 Prevailing U`ig laws require 'feder-al-project F. h -here the federaflyfurid- e oxvimi xk Jimwenfts contracton. fiy)ri witining federal projects by importing 14)wer- waged worken,into &-mi-, M11111ries 0.1' drivill do.wn 9 tile wag'es of local vvork S The 65-vev-old as -t s ill-Bacon Ac ,wa, stXyh'-wellby R"blican metnbers o((__;nngfe_" and, aqned.hy -pub- hein Pr cskknt F7, of 65 r �{ t pilot ie, iltI'€t federal govemn tl lil3l #.$ }a3€i1c ?Kilci' $s ' k.z"r g e r11iiiri4. t4i 1itiirike F ri rr li � ^t o other words, it ev)—; I ig gro--�rinnent �tnt Haig usiiitess fi-t ��° g 1 €irc 'ri tilr ray =: t`�i t" rlrr il`t:rst' , (: 4 r r and ." 04 a Nitnt tl 1pt vt=t;im as .{T lt' IN of Ri`* t?+ fort_� :`.,, I?rr,,,-tii11 . w,or r," Davis-Bacon py mint ati honest gay% a m 3 an d 01- tr ° t —an this is�whpit tr _ 4 1��, fican t eani about! , a € }" is SH How i ha r ., .tee (. 0 04 s - � F 9 xlS� V ng trc -al conditioots are the touchstonl of -,�aige. laws. On aell pt ije t n6ject to) 3-6sA—T C0ii,'jUSt K x qM YTUII lii`; � .r trllsrtCir e,;.valisl mpecaei iotcY prices for ri'�=CL`I.l:i ',s anti e i prrl rrt they also advise ontr t n Aumt hx it vtigN.and . r fit norms. � n tMtoks �ubani ' € bids', i itig their oop, 1 ttrtr :rirri Aso alr z�r _- l "-t ittl>rrtrtiirrr 4"t tt �$ ffik knelt levils. t"is-Ba �)n tits the lsti pri rt rl rile i t*Tr r '_ir^ W WAM .0111-Me mg that federal cc-nimactf.,)rs Iti up to these standads am Q If f t AGE P _public-pohry seezzise �£ � ,gait r1C xdt'sthe le&�g"e rirtl ��� �. state q ��$ pro g�Iling �ey pq�a2p: laws,do nce kw i.n r< t principles, and protect tai l lair£tr-i it ¢is txgxri lunlY ful effects,of lar- 1V Q003110d comp—,ir° 1 goo w,: t rt tr u do it-, rtius" th andyithoqt prevailing wij gC lips �� Their findings reveal t tat ` a laws dmilt AN6 inflate the cost ofOtt r g gg, q $ $gy $t } } /g gg �y 'g¢ qr�q 9q 'gg 9� g'q g } 5� o 3 s�b� cordi 3 ) a �*��° # A it r3�um 3.:i'8 # dy. ".% L % hngr,T h£g10 lxF 3 f t `' k laws Saw all i 1val l t .i_i :Purr_o: hy r_-il tir irig that t ` t l 01 iti nt does not beaAae2 to such desmb 77pnax- tices" as payir_g leek-,er than prevailing vailing v tg s anti hiring rmmiy IR ANN? too' �`� r" w a ,m y5' { s 3 n tht t d� c la-ws_ there ��Rt�tt � increased y .n ra h Iit, 'n the Construct on, 11lith r m;irk t fiercer C01'tlpe $ro �qq lower } ¢or ��� t=for pt rgy't��gd-e rs n c ig�}t¢-':1�turs, �., 4.,�, 7 t ly, v� �` ; d a �o e �f°s4�3s�.ar, Li living E.-°,�T Rat°e.«�.d i� i&.kA &.h$«X$ land, n X g 11 _, xistL t 1Sy f € �i� ` "its' t1 tlt �'tt�at� act to a$�' Wve.. R PRE VAKINCG WAGE LAWs. a proptal ,. o un MIMI : i y Lhat tht S av 711 Sari Bi_rn t al t iu;ra tes I:Wr fits-v t 40 C3,041, A y � Yk 3' t.i_£LfbxL.'Y R.a p &. "4...cL's4.. #&R'£4"ars spend bE of 3, ftnt8 .P &_&Y.?"# e je in 10CAI shops -and Testa u-ant and:pay x— taxes etch are .' � r� tit�t tt3tt� nit _ �eont : 'Re law�t� r _ n u p f� ad .,nt_ ntp g$hi g g-q gag-pqq�fi that g�g q g�ggg The L3:A 1 � $wb3@t)ha sizes E&id14construction ��.P£ 'e _> F tR.&€a* 'a+ i 33 V4£T b , K" don't receive health irtt other benefirshecome users ttItt ttimmunizes m ��31 g the t progratas Ps " y 3 con i " tc to the com t t s ability to furnis ciallpro ®: d g y� g'$�S pg 3`�yg +¢y.8g y,.' �� y J� F r "•t r WIN, a r '-r #} , = y ID, a _ q UNION $ � .t tale lint! Th � ; �e : t �� Labor t gat i°i ne -ort as p red the rate *.ri.- -ailing wage each b C. 51"ication requi locality. According Itienefits pa d, in-the to L �€ # epa tme t figures, nommi �t� scales rttt� for 7 99 } cent,of wage det 6 a. ernuna max. The ��: �� Congressional Budget g. t]j $�& y °ggpy» #+rj'yg_5 fi'g-� �§t biased �y ap4 g'{p� g ${� >3 �"q gg y?�{� T SA $.+v9�S.d$$� 6 ?gJIC$ i bTa �t3 {A ®t 9Pk�i'2 4 $ Rikb 4'9c @d el& s � 4K"bal 14 �. r ortet t tsar ,mot tend t h � fir K-1 , is areas and %vs ot consuuctiort that are heavily. s uruoruzed, anti n i ) rates are td 1"o tionw,ion �R f tmt-itttr - r t xtta. a l d � F of 3% � . " ... I Q - k sras; r 7 M 40 60 60 Sa �.. so 40 k }\ \ 40 _r to 26 to !t cri Atlanta Laborer This r° r i r sent sage annual irrconie. of wf r'kcr 9 in four cities, "ire wtokers, erg^r it"well CM fidetal week- r fl r irr . ' 4 averag duration f). boor p rweek (the 1994 111r x t av .Ahnic'side° is ri- houwho d income IC)r each nictro area. Vtv 111 tan fedora stand clay.. FiTst,� - ,,,cs ary tie r fr in San Franciscoanct Chilcatzo,than in luvverlcosi Dallas zr-rr ktiant , Second, irr -turfs t4 tits ^idcs do �i�-Bac��r. _-" r l `'4, the oveMv life for a farnily of fbitr was SSI 5,1413 Even in a gtxxt year like 1994, Families c)f ter an lab irers would have -mig d r)_s t aid povecty if thcy srrf; fered the n r c duration of unenipirwmwit,in2 the I rr�ltr�t = Adams Information, 31 of 65 B: gyp r : " MEMO= 40 c a 40 30 10 1 Y ii r* le M� PRIVATE SECTOR AVERAG E ComTRUCTIOt4 DAVIS-RACON onst'ructif)n _ ork-trs are-Among the Amps ()felu jig v- ees hired tii work theiriselves out of Thq, sire twice as 1 t-o Ixt �:.�i}' `-. 1,)t t r workr<�3 ` ��s is d��t tottrs �t�w tItr rtrat ons, -zeat t,r vh n �, t't tar t Bat s � rf �". inevitable tips and d(Av s of constniction life. con tt .rt:t on weir e .s are, inuch less likely to Nve hqlth only K7 Percent, of ctm trr t rt NAror rs' nplov r pon-- - c- ared tas on pl nn, t t t t �tr to r rcat o �r v.te, Se cor %vorkers in other indu tri Aixt On'',l `5 5 percent (if t 011- structi n Nvor t.rs enjoyed eti (-�ve -provided l ldt..nsur- ;tt tr`tl t:rt.c t';tt : :t : :to rt °att - .)r k er rs. Das is-1 act m phivs a 47 rol in pmvvitling stable benefit""', indudiqg hath.insuranm 1misions, k' nd disabd1tv lnsurgi ance, andvacatitm and hobday, pay n,many,caws, ties m— eats 3re offered throt.jghinultiervi doyer plans, which enable Adams Information 32 of 65 OAVISsaON s:ac n enlccaaas.ag skilled wunik r (i st w iii co structiom xpe )nc way I aaa s- laawta elps aac air°,a, dus is, Iry er, a � Mc: � U el f -role, Incenti,e fttr cwitr ct gas a,upj:- _=a --A -mature staa ilmiag thc tems au ti as indusmv, Da"is-13'act"ill aact � saaaFraia tts alId aa ,°r. a :rt ;a , ,se. It sild o saa .c)n wtwkcrs have eft fl-le, irad as ax bcfowc 8 as r a t,ra aa"a ( ; s a cti.)n life.° { clec-fine and skilli-xi workers Nvould crinfilijacra leave the ate - apprenticeship and tral-ru'ng levelsare expecrect to ki aka by 40Qltr s s mment. a ea�mple,ara a a� rt` t Lip!""Ta Uaritar�. ; r rattes p aaaaa nete fTom 95 aaa 15 percent. Thar sute tlmv ce a shortage (A adequate tra aed constr ctum wOr e EWE 19 r` t .` r ,ate :- # 1 Md a � # jY b V AiL1N'da PA'gn ARE GOOD F0R AMEPICA � 3 y 0. � r u " m a mities e - PPoftt a .. ',E.)da va_thanks to Zvi, `Bn0.S,:on, Afiri § me._ca 3, a;nkX a rtc, t 1f xzttI 11 ri er� fairwages ors "ea ral projects, Iti I V)O. i r , l{ i Uv:rogranis was 2_5 percent higher in stvcrg l tree,with op r nno engineer, at 32 pe— e mint r€ " roll e t. r�:)fe�r t 8 per t, y tid cement in £ , j k at - 1 x 4 e t. inor tits are 1`�eav-1 z� l �� � he A"4a " . } yy�y q, {y g ry q�g q�y�,Sg q" �¢ $ f g g y g� >y{ g gp p.t is g^ g' ^e ".. $ 4 t$ .45 '4° 4 -8"S� &'Trb $ k a&'� Rffi2 $,..�3 $ r P,14 gjw n '&. � a. zn Wre T he Congres. a1 Black Congressrecently and r- -scored Davis-Bacon S contributionsin a Ittter to AB a re ex °Yes efirve thatDavis iiwwn, in-blik Wnt t ing the zvage if-p fir fop� � , # dif i v a� � �£-x ° gm &r I tbe fare of detmying ­,vimn imdininoyide,with v importmir too!to mbi i toy n am quity mid 5uM�y to fax � � � l Rea "CUSS t tl . x R - career develo merit tipporvarnues, Some Daxis�Bacon critics -ceping up labor standa, --es 41 opportunities for tinskilled worker willing to work for any toffs 0 r � , 1 t r Alt not i r e into st w— is to increase- prr�tl l � nor t °t rj�tDeesBacon t lr � _> trained in consmuction apprenniCt hp programs w td ic &d their prev a-ilIMU program � t from t 1= p r nt--- ,)r � � try percent their s of&.e �ftrall sr;lte pope ' n�and CAL. OMNIA, CONTRACTORS' ' Y �and t fernale er �rs a entered the strut- A ng �s y _ newest Membersthey are p t l�rl Adams tforrnat h 3 of fir, access to muning opjx)rtttrrtiti s .vou c I r et'oo-d severely, Jj v�«��`�y�� ,� gg �rpf Q.^ �s3-.y.� ��°sx@'pp ,; $q .g y� d'yki F6 a tJ':k�R�'. `z ;5 {4� .r o .�'t r rt a 1$�,'yi S pa,,. 8 o f ���Ei-siwi a°.�.�,�o3�Ft .gip jl- 'qf the Cr,uii#74aki, Imma it . r e V (it ' rider xa, xsh :ta 0ax Burt-au Director, N. AC DAVIS-BACON bows stiljje",ti) Lle/,,- h ei7ltl) A when workers are inf-I a hence * unskilled, or under rc%,-iurte: to cut corners �xi:irk fast. V�ithout �s_ Bacon, tease r s would I e acrr rar d, -cast increase,in Nv o - ate injuries arse illness es N- t t w n at omal IeVd, 10. 11T this law, there could o- Ir r tau ai�;�pY� o- 3 a 3 ql " be an additional 7(iji100 new w(wkplace injuries {,:5di war. < ' more Jtltlt I.° k� It r ill E1t ,d! u tx gr 30,01 it- �� r2 'i dry" 1'igrt kl > S .f4..f` `4, 4i.tl i ginkCarlti > k�' r' }r4"tI t -ii}° tl tlli. [},�d � `� $ l ,, s' € i1I ' IT s kVor ,t-r c�t1 j S� skr:1l t� i t Sf$7t g tt ` t q3n+ ,a s a rt9t $ ,i`a t.ei t 7<E * i �t it i 't tt'ri WA k i3<t. : �)n I'-ti° -t t'r« 1'lrkk't'1 as, ttlt�'C�`�3'�e ' public works' t, �'vs and, ulti— 1t cr ( t ' rtr .3 4 f ra3 the t i Inn, rel 1 .iY razrS.,.R^r are trained g£_F f 3E P�,.safely. 1. ..� R �, t a�3 f, gr.,,,A '`'A53R. gib G4. t s � ualip- ��,�;T wan �°Over risks o t�=,r �� �F�rHIk�rxg. and � � i rs.rvrrs By fps ewmriny shoikly, unsaf work_ mir st ie a �.=4 NOW NOR "10 4 y, _- s i i "Dicre k at stron! in t �t� t� fair ageN ami high ptodu ti�. rt-s The reverse is also true. Without D k f s-Haumi #,g.isumv 1 3� earl Nv i.€ld revert to c w wIge; ``'-t t)€mg _'trt- AT t ry eeot stu ly used e �£ , Federal Highway dnih-Wr on data � rrtti tint i t Y c<), tru tion costs ofirtit ROO A tt y ll £T '*s It # ? f:)rrtat �' r iT; tt a tttlt i _ c r i t them Un rt �fc�� states. ga, a states that Pad workers e bn etti tI ttlr usidt roads Cxp r:t i. 5,0 cwr every t�.e tti t hi i &. 31 ours of IaLx)r. tic= aced prW1i� ��ty of ���g-t r- w)rk: _k ,rs iTlade up 1&r Cc c[» ,,Asurages a°i.e bid down. so are cast overruns nd f r sive c trlve � rd s. st re fir,;nce y j fallowing Aiow—bal— i trim r`e..'11 g 3 L }x G aul 3 U'MIRIV S. a. T x moo i =rz 6 3 �6 opf�65 q f - � ( g -= % (.)Tkcrs---_-bwh union and You, stiff AI ieri Cary ta °ye r` j all of urs would pay BCiu.aitNe ��'�� t�.oul t o.$i bv, a bi u) prctliki thec$`�c:pundabt it of CUt&3Si.i"iDCiion roducv,-, In i"i. 'i.t�$ri. ',vorkers wo,ohi io,c itsa.'ori'ie and g -'ncli£�, gty°ta9ter,1y 41C., iq`su-ItT.lt'i#s1-i"s gu'�'iptxt i 'u l i�a"[��)er 4�"orke`s` crai.3 ga'i"3,�5e?i �}i`$ 1.$�"�*ii.i i_rns, c(m,m °� 1 4 c-ti n ���ms 3a n&i i�''; 6�m! n S 8 5 � cif year" ��r l ! CIA up 3a1.4 ing g i� r S�sii#'.tilt v t°�:�s t {�i1� (x�sr s-hi i:ir!g u l pnv;t itriu anc e an ii�toi°�g:tsv state funds L hospi- tals. And cotninuni6es-,voids lose buyingpnver and LAX 3ISCS. A . 5Airs § - q5 _ - �• fry, "4k,�' Y�' R -fvi } V M X £ g.. � �4 S % a v vx � PP s 3 a Ci - _ z' f_ a y, 5. d k y k} °F � & E � 3 L f le, . y e t �: t rnately > c� t� . wi - �xoproduces s r better IC °fit Mlcafm ����l .�$xt i?rely ��;ise on gt,,)( I T:i�l�3- t x 5 t :t 4r c to kanow the credentials of ini r oc- t+,rs and others with � aorn e t oux ives; w ah, ti c=� t i . . q now the cr dents 5 Elf s c -er r who �31�� 1 � and iristallife-sa'ki lims in our Itiv , NVe deservet behest! f m 7 Davis -Bawn is cruc,i to our countrys economic health. d b F 4, J Y D 33, �3e 19 eV p 2 Du J A, 3� T .Es- x 3 0 3. 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Preva�������'�-��� t������� �M�4 government������ �0��r�r�'�(� iling`—'''^ 'z� ` ^~~��^~~~ ^�^ '^~ cr~~ ~~ ^ '^ ' ^^~^ ^� ^~~~' '= ~~^~�'' `cv costs : A review of the research ByNooshin Mahalia, lU|V 3, 7008 July 8, 2U081EPl Briefing Paper#2l5 Prevailing wages and government contracting costs A review of the research oy Read news release Executive summary For over a hundred years, many state and local governments have required that companies that want to contract for public works must pay their workers a wage that reflects wages commonly received in the area. The federal government adopted its own prevailing wage requirement with the Davis-Bacon Act of1931. At the heart ofthese laws is the conviction that government, as major buyer in the construction sector, should not act to drive down wages. Indeed, the civic- minded reformers who initially pushed for prevailing wage laws believed that the government ought to use its buying power to enhance the welfare of workers and their families. Critics ofprevailing wage laws argue that they inflate government contract costs. But growing body of economic studies finds that prevailing wage regulations do not increase government contracting costs. Some of these studies use a cross-sectional approach' which compares costs of contracts subject to a prevailing wage with costs of contracts that are not during a common time period, and others use a time'seriesapproach' which examine whether contract costs have changed with the adoption or repeal of prevailing wage requirement. These studies also show that prevailing wage laws provide social benefits from higher wages and better workplace safety, increase government revenues, and elevate worker skills in the construction industry. The issue, however, remains contentious. The current research counters the findings of set of (mostly earlier) studies that relied on hypothetical models. The model works like this: the authors calculate a wage increase attributable to the prevailing wage regulation and then, assuming that the entire wage increase is passed through to the government in higher contract costs, calculate the higher contract costs. The wage increase calculation in these studies is typically flawed, but the most notable problem is the unquestioned assumption that higher wages lead to higher contract costs. Obviously, a study that presumes, without examination, that higher wages lead to higher contract costs tells us little about whether that is in fact the case. There are many reasons why higher wages do not necessarily lead to higher contract costs, and the findings of current research suggest that other factors erase much or all of the hypothetical additional costs the earlier models assume. Adams Information 41moo Although a few recent studies have adopted this"wage differential approach," most modern literature has favored econometric approaches to compare situations where prevailing wages are applied and where they are not. These studies, more sophisticated in analytical terms, have found no statistical relationship between prevailing wage laws and contract costs, with only two exceptions. The first exception was a national study by Fraundorf et al. (1984) of construction costs in rural areas. The authors found sizable cost differences between government contracts that were subject to federal prevailing wage rules and private contracts that were not. As the first of the econometric studies, Fraundorf continues to be among the most commonly cited in the literature. But subsequent studies discovered that the authors left out a key variable—differences between public and private building design specifications—that would have controlled for the difference in public versus private construction costs. Once these differences are accounted for, later studies do not replicate the Fraundorf conclusion and find no impact of prevailing wages on contract costs. The second exception in the modern econometric literature is a study of low-income housing construction in California. The study found that affordable housing construction projects subject to prevailing wage laws were substantially more expensive for the government than projects that were not. Because this study is relatively new, scholars have not yet explored the reasons why the findings contradict the rest of the econometric literature. If labor-intensiveness, skill, and material-saving technologies are sufficiently different in the construction of subsidized housing than in the construction of public buildings or highways, then it is possible that prevailing wage regulations would affect this sector differently. However, the study's findings seem implausible, since the cost estimates of the preferred model exceed possible savings in labor costs. Because scholars have not yet replicated the study, it is unclear if the findings relate to idiosyncrasies in the data and methodology, or to the peculiarities of subsidized housing construction. With these exceptions, the modern econometric literature finds no cost impact on public construction associated with the implementation of prevailing wage regulations. The literature suggests a number of possible reasons for the absence of a link between prevailing wage laws and overall contract costs. • Prevailing wage regulations do not, in all cases, increase wages. Public contractors may pay at prevailing wage rates without the regulation. • Average labor costs, including benefits and payroll taxes, are roughly one-quarter of construction costs. Thus, even if a prevai►ing wage regulation raised wages by 10%, the impact on contract costs would be less than 2.5%. Thus, even if there is an increase in contract costs it is likely to be small—to the point of being undetectable. • Improved productivity can offset higher wages. Better-skilled workers attracted by the higher wage might complete the job in less time, or firms looking to reduce their higher labor costs might utilize labor-saving technologies. • Higher wage costs might be offset through"factor substitution," i.e., the substitution of more expensive labor with, say, less-expensive materials. As a practical matter, this point assumes that workers are roughly of the same skill level. But it shows that worker wages are only one of the avenues contractors can use to win project bids. • Contractors might absorb the higher wage costs and pay for them out of their profits rather than pass them on to the government. Adams Information 42 of 65 Some recent studies have expanded the analysis of prevailing wage regulations to determine whether they have indirect costs or benefits for the economy and society. These studies have found that prevailing wage laws can enhance state tax revenues, industry income, and non-wage benefits for workers; lower future maintenance and repair costs; reduce occupational injuries and fatalities; and increase the pool of skilled construction workers—to the benefit of both the public and the construction industry. At this point in the evolution of the literature on the effect of prevailing wage regulations on government contract costs, the weight of the evidence is strongly on the side that there is no adverse impact. Almost all of the studies that have found otherwise use hypothetical models that fail to empirically address the question at hand. Moreover, the studies that have incorporated the full benefits of higher wages in public construction suggest that there are, in fact, substantial, calculable, positive benefits of prevailing wage laws. Introduction Prevailing wage laws require that contractors on public works projects pay their workers at least the locally prevailing wages and fringe benefits paid on similar projects in the area. Kansas was the first state to adopt a prevailing wage law, in 1891, as part of a broad-based effort by the Republican legislature to confront the social costs of 10-12 hour workdays, child labor, and downward wage pressure (Phillips 1998). New York followed suit in 1894, Oklahoma in 1909, Idaho in 1911, Massachusetts in 1914, and New Jersey in 1923. The first and most significant of the federal laws establishing the prevailing wage rule was the 1931 Davis-Bacon Act,1 which requires payment of wages"prevailing" in a local area to workers on federally financed construction projects worth at least$2,000.2 Davis-Bacon gained bipartisan support during the Great Depression, when unscrupulous contractors won bids based on low pay for workers (Gujarati 1967) and then delivered shoddy workmanship. It is named for its two Republican co-sponsors and was signed by President Herbert Hoover. Under Davis-Bacon, the prevailing rate is the rate paid to at least 50% of workers in a construction occupation for a local area. If there is no single rate for at least 50% of workers in that occupation, then the prevailing wage is the average rate paid in the area for that occupation. States, counties, and cities have adopted their own prevailing wage legislation, and policies vary widely. Prevailing wages in states and localities might be set as the local union wage rate, the average wage for construction occupations in the area, or a combination of the two. Thirty-two states and the District of Columbia currently have prevailing wage laws. Nine states. had laws but repealed them, starting with Florida (1979) and Alabama (1980) (Kelsay et al. 2004; Philips et al. 1995).3 Repeals have relied on arguments that prevailing wage rates increase costs on public construction contracts (Philips 1998), and assertions that repeal will save 15-25% on construction costs are commonly echoed in the news media. These claims, however, do not stand up to serious examination of the relationship between prevailing wage laws and government contract costs. Adams Information 43 of 65 A growing body of economic analysis finds that prevailing wage regulations do not inflate the costs of government construction contracts. A simple premise underlies the hypothesis that prevailing wages raise costs: the laws result in higher wage costs for contractors, and contractors pass these costs on to the government. Although this seems like a plausible outcome, there are many reasons why the costs to the government might be the same regardless of the wage differences. For example: • Contractors might pay the wages required under prevailing wage laws even if the law does not require it. • Labor costs are not the dominant costs in government construction contracts. Even including benefits and payroll taxes, labor costs are roughly 20-30% of construction contracts, according to the Census of Construction (Phillips 1998).4 Thus, for example, if labor costs are 25% of total costs and prevailing wage rules raise wages by 10%, the impact on contract costs would be no more than 2.5%. Thus, even if there is an increase in contract costs, it is likely to be small—to the point of being undetectable in some instances and/or by some studies. • Higher wages might be offset by a rise in productivity. Prevailing wages can attract better- skilled, more productive workers, or firms may rely on higher managerial productivity or invest in labor-saving technologies to offset higher labor costs (Philips 1996). • Higher wage costs might also be offset through "factor substitution," i.e., substituting more expensive labor with, say, cheaper materials.5 • Contractors not subject to prevailing wage laws might retain the money they save in wages as higher profits rather than passing the savings on to the government. Alternatively, contractors paying prevailing wages might absorb the higher wage costs, paying for them out of their profits rather than passing them on.6 As with any economic analysis examining the impact of a policy on an economic outcome, the challenge is to isolate the impact of the policy from all of the other factors that might influence the outcome. Take, for example, a study that compares the costs of two sets of construction contracts, one set subject to prevailing wage rules and one set not. The difference in the costs of these contracts is influenced by many factors other than the prevailing wage. If, for example, more of the contracts subject to the prevailing wage happen to be for taller buildings, or are completed during a building boom when construction costs are higher, or use more expensive building materials, those contracts might be more expensive for reasons unrelated to prevailing wage regulations. The studies described below take a variety of approaches to this challenge— ranging from ignoring it to using sophisticated econometric techniques to control for the differences. As scholars have engaged in this work over the years they have learned from their predecessors and refined their techniques for identifying the factors that influence contract costs and improving ways to account for them. The approaches researchers have taken to study this question fall into three main categories: • The wage differential approach. Compare wage levels in contracts subject to prevailing wage laws with wage levels in contracts not subject to the laws, and assume that all additional wage costs are passed through to the government by contractors.7 • Cross-sectional analysis. Compare contracts subject to the prevailing wage and contracts not subject to the prevailing wage in the same time period. Typically these studies compare the costs of government contracts in states and other jurisdictions with prevailing wage laws with contracts in places without prevailing wage laws. Some studies, however, compare public and Adams Information 44 of 65 private contracts. In addition, in some jurisdictions, some public contracts are subject to prevailing wage laws and some aren't. For example, a local school construction contract might be subject to prevailing wage requirements if the state funds over half the cost but not subject to the requirement if the state pays less than half. Some studies have used these situations to compare the costs of public contracts within the same jurisdiction. • Time series analysis. Compare government contract costs in time periods with a prevailing wage requirement and costs in time periods without one. The wage differential approach to evaluating the impact of prevailing wage laws The wage differential approach consists essentially of two steps. First, researchers examine the relationship between prevailing wage regulation and wage rates. Are wages higher on contracts subject to prevailing wage rules? Second, the higher wages that are calculated are then presumed to be passed through to the government in higher contract costs. In 1979 the General Accounting Office (today the Government Accountability Office, or GAO) used the wage differential approach in studying a sample of 30 federal projects subject to Davis-Bacon, estimated to value about $25.9 million (GAO 1979). The GAO concluded that, due to incorrect procedures used by the Department of Labor, wages paid were actually higher than prevailing wage levels in 12 of the projects. Wages on the other 18 projects were lower than the prevailing rate. For the 12 projects set at higher rates, wages were about 36.8% above the prevailing wage rate.8 The higher prevailing wage rate was presumed to have been passed through in higher contract costs, driving up total construction costs by an average of 3.4% and raising federal construction costs by $228 million to $513 million annually. The Mackinac Center for Public Policy (Vedder 1999) employed a wage differential approach to calculate costs of prevailing wages on Michigan government construction. The author used a sample of wages paid in the Detroit area suburbs to calculate a 40% difference between market and prevailing rates, a premium that would, hypothetically, drive up construction costs in Michigan by 10%.9 Applying this 10% to state construction costs and non-construction capital outlays resulted in an estimate of$275 million in additional costs due to state prevailing wages. Keller and Hartman (2001) attributed a 17% wage difference between public and private construction contracts to the state prevailing wage law. The authors compared a mean hourly rate of$17 for school construction projects that paid prevailing wages and $14.13 for private sector projects.10 The authors calculated a 2.25% increase in construction costs by applying the wage and benefit differences to the sample of total project costs, and then used simple accounting to conclude that prevailing wages cost the state an additional $66.8 million over a six-year period. A study by the Beacon Hill Institute found that the Department of Labor's Wage and Hour Division (WHD) incorrectly set hourly wages too high for nine major construction occupations. The authors compared average wages paid under the Davis-Bacon Act with wages for those occupations reported in the Bureau of Labor Statistics Occupational Employment Survey. The WHD set hourly wages an average of$4.43, or 22%, above BLS average wages.11 If these wage differences were applied to federal construction, government costs would increase by 9.9%. The authors estimate Adams Information 45 of 65 these differences to raise government construction costs by $8.6 billion per year (Glassman et al. 2008).12 The Center for Government Research (CGR) estimated that prevailing wage laws increase total construction contract costs by 36% in New York State's metropolitan regions.13 CGR arrived at this estimate by comparing prevailing wage rates with the market rates of construction occupations. Prevailing wage data collected from the Department of Labor were compared with median wages of construction occupations in seven metropolitan areas in New York and outside the state.14 The authors then compared labor costs to total construction using a prototype project, or an imaginary model of average construction costs, and applied the markup rates to total construction costs.15 They concluded that prevailing wages raise total costs of a typical construction project in the New York metropolitan areas by about 36% (CGR 2008). Wage differential studies are prone to two primary areas of criticism. The first is the way in which some of them calculate the additional wages resulting from prevailing wage regulations. The GAO and Beacon Hill studies' results are based on contracts in which, the authors assert, prevailing wages were miscalculated. But miscalculation of wages under prevailing wage laws is an implementation problem that does not reflect the merits of the laws themselves. Further, with regard to the GAO study, the Department of Labor and other critics argued in congressional testimony that the GAO's methodology was fraught with poor scholarship. Why did the agency exclude the 18 projects for which prevailing wages were set too low?The inclusion of these projects might have offered an entirely different picture of the net impact of the Davis-Bacon law. GAO also acknowledged that its sample of projects was too small for its calculations to have statistical validity. Mackinac (Vedder 1999) assumed that a wage differential in the Detroit suburbs would be the same in the rest of the state, but did not test this assumption. The second and more fundamental criticism of these studies is how they allocate the higher wages they estimate to contract costs. These studies assume, rather than empirically examine, the relationship between higher wages and construction costs. In contrast to the other methodological approaches discussed in this review, the wage differential studies do not rely on natural experiments to compare costs of contracts subject to and not subject to prevailing wage regulations. As a result, they are unable to control for other factors that influence construction costs. As outlined above, there are several reasons why higher wages might not be passed through and, thus, assuming that they are is not a safe assumption. The flawed assumptions of the wage differential approach, and the inability to control for other cost influences, limit its ability to determine with much validity whether prevailing wage laws raise government contracting costs. Cross-sectional analysis The existence of prevailing wage laws in some jurisdictions but not others and the fact that in some jurisdictions some public contracts are subject to the regulations but others are not create an opportunity for a natural experiment to study the impact of prevailing wage legislation on government construction costs. The cross-sectional approach used in the studies described here use econometric techniques to compare costs of construction when it is subject to prevailing wage Adams Information 46 of 65 rules with the costs when it is not. This method reduces the need to control for time effects and seasonality concerns within the construction industry, although it is necessary to control for regional differences. In the first econometric cross-sectional study of prevailing wage laws and government construction costs, Fraundorf et al. (1984) collected a sample of construction data from rural counties across the country.16 They employed a multivariate regression model to compare costs of public construction contracts subject to federal prevailing wage regulation with costs of private construction contracts that were not. The model included controls for a range of factors: regional variation, project size, and building type. The results showed that public construction was an average of 26.1% more expensive than private construction. The authors acknowledged that this estimate seemed high. It was unlikely that prevailing wage laws would generate such a dramatic increase in contract costs, since labor costs at the time averaged 30% of total construction costs. However, they were unable to explain the discrepancy. Prus (1996) replicated the Fraundorf model but was better able to isolate the effects of prevailing wages from other influences on construction costs. Rather than compare federal projects with private construction, he compared costs of public and private projects in states where prevailing wage laws existed and places where they did not. He found that, even in non-prevailing wage states, government construction was 32% more expensive than private. This finding suggested that the earlier Fraundorf study had measured price differences between public and private construction attributable to causes other than prevailing wages. Controlling for construction cost differences between states, Prus did not find a statistically significant difference in construction costs in states with prevailing wage laws and those without. In a study of construction costs in the Intermountain and Southwest regions, Phillips (1996) compared construction cost data in five states with prevailing wage laws with four states without prevailing wage laws.17 He found that costs were lower in the states with prevailing wage laws than in the states in the sample without them. The author attributed this finding to higher productivity among workers in states with prevailing wage laws. Phillips (1998) conducted a study of school construction costs in the Great Plains states. New school construction data by school type showed that costs were not statistically different in states with prevailing wage laws than in states without them. Prus (1999) examined both public and private school construction across the mid-Atlantic states with and without prevailing wage laws and across counties in Maryland with and without the laws. The study found that public schools cost more than private, irrespective of prevailing wage laws. In addition to this distinction, Prus identified region, the distinction between new and renovated buildings, building type, building material, and building size as important predictors of construction cost differences, but he found no evidence of an impact of prevailing wage laws.. Azari-Rad et al. (2002; 2003) used a national sample of school construction data to test whether public schools built under prevailing wages cost more than public schools that were not. The studies found that building type, project size, seasonal start times, and whether the school was a Adams Information 47 of 65 private or public building had a significant impact on contract costs. Azari-Rad et al. (2002) found that high schools cost 4.6% more than elementary and middle schools. Azari-Rad et al. (2003) noted that public contract costs were 15.5% higher than private contracts in its sample of new school construction between 1991 and 1999. But controlling for construction costs among states, this study found that construction costs were not statistically different in states with or without prevailing wage regulations. After Fraundorf, only one cross-sectional study has found prevailing wage regulations to be associated with higher government contract costs. A study by.Dunn et al. (2005) concluded that prevailing wage rates in California raised public costs of low-income residential projects anywhere between 9% and 37%.18 In California, some public housing construction is exempt from the prevailing wage statute, so the researchers were able to compare construction costs between projects that were subject to prevailing wage regulation and projects that were not. The researchers used two different models. One model reported prevailing wages leading to an increase in contract costs of 9-11%. The results of the researchers' preferred model, which used voter data, salary data, and union information as instrumental variables across the California region, found that prevailing wage laws raised construction contract costs by as much as 19-37%. Phillips (2006) found that states with prevailing wage laws had higher productivity, with about 1.3% to 15% more value-added per worker. The 31 states with prevailing wage laws had higher rates of construction training programs, and trainees were more likely to complete their programs compared to states without prevailing wage laws. This study suggested that productivity was a key reason why other studies could not find higher contract costs from prevailing wage laws. The weight of the evidence from the cross-sectional studies is that prevailing wage regulations do not impact construction costs. All but two studies found that prevailing wages do not raise costs of government construction and, of those two, the findings from Fraundorf were not replicated when the model was improved, most notably by controlling for differences between public and private construction (other than prevailing wages). Researchers have speculated that the factors causing higher public costs include different building design specifications (Fraundorf 1984; Prus 1996); Azari-Rad et al. (2002) suggested higher public costs might arise from spikes in demand created by government decisions to develop multiple projects. These spikes, referred to as"cost storms," were an example of government's power to affect market conditions in the construction industry through large capital investments. Dunn et al. (2005) is the only study other than Fraundorf to employ modern econometric techniques that show cost effects of prevailing wage laws. Why this one study contradicts the general econometric literature is not yet known.19 It is possible that low-income subsidized housing construction might require less skill, lower costs of materials, and a larger share of labor in total cost compared to overall government construction. Labor-intensiveness, skill, and material-saving technologies involved in affordable housing construction might be sufficiently different from those used in other public building and road construction that the operation of prevailing wage regulations works differently in this sector. If this is the case, then prevailing wage regulations might operate differently in the affordable housing sector, which is a small share Adams Information 48 of 65 of government construction relative to construction on highways, schools, and infrastructure. However, the biggest weakness of the study is that a 19-37% difference in prevailing wage and non-prevailing wage contracts is implausible. Assuming that labor comprises a 25% share of total construction costs, a savings of that magnitude would seem highly unlikely. The Dunn study's unique findings might also be due to idiosyncrasies in the data used or methodology employed that may emerge as scholars attempt to replicate this result. If these results are replicated, then the Dunn study may raise questions about prevailing wages in subsidized housing construction. However, it does not represent the rest of the current literature, which has shown that prevailing wage laws have no effect on contract costs. Time series analysis Another approach is to compare construction costs before and after the passage or repeal of a prevailing wage law. These studies generally account for time trends in the construction industry. Thieblot (1986) used the opportunity of President Nixon's suspension of the Davis-Bacon Act in March 1971 to conduct such a before-and-after comparison. He examined federal construction projects that were re-bid during the 34-day suspension and compared the new bids to those originally submitted. Thieblot initially estimated the re-bids to have resulted in savings on federal construction costs of less than 1% but, once controls for inflation were factored in, the differences in the re-bids suggested a savings of 4.74%. Thieblot acknowledged the possibility of biased results because full disclosures of the original bids were made publicly available before the re-bid process; thus, bidders may just as likely have been responding to what they saw in their competitors' bids as to the rescission of the prevailing wage rule.20 It was unclear if Thieblot's analysis measured the contractors'ability to use information to their advantage, or if the experiment captured the effects of the suspension of the Davis-Bacon Act.21 In effect, this study could not overcome the problem of controlling for the knowledge bidders had about their competitors' prior bids on the outcome of contract costs. In a study of new school construction in British Columbia, researchers looked at six years of contract costs before and after the adoption of a prevailing wage law in 1992. Bilginsoy and Philips (2000) found that, without introducing any controls, prevailing wages correlated with 16% higher construction costs. Once the authors controlled for the business cycle, type of building, the number and size of the contractors, regional differences, and time trends, they found no statistically significant increase in construction costs. This indicated that the cost differences were explained by numerous factors other than the prevailing wage legislation. Phillips (2001a) used a sample of 391 new school construction projects for a pooled cross- sectional time series approach to examine cost effects of prevailing wages in Kentucky, Michigan, and Ohio.22 He noted that urban schools cost 10.5% more than rural schools in the three-state region and that breaking ground in the fall added 10% to the total cost compared to projects started in the spring; such a (perhaps unexpected) finding highlights the importance of proper controls in these analyses. The study found no statistically significant increase in construction costs associated with prevailing wage laws. Adams Information 49 of 65 In summary, with the exception of the 1986 Thieblot study, which faced a critical methodological challenge, time-series studies generally find that prevailing wage laws do not increase construction costs. Do prevailing wage laws have societal costs or benefits? Recent case studies of prevailing wage legislation have analyzed not just costs to government, but also the wider costs or benefits to society. Some of these studies have shown that prevailing wage laws protect a state's economy, and that claims of government savings from the repeat of the legislation would pale in comparison to losses in revenues and income. These studies demonstrate implicit threats to the overall state economy, since income losses could lead to reduced consumer spending. Other studies show that prevailing wage laws discourage unscrupulous contractors who compete by hiring low-skilled labor, cheating on payroll taxes, or risking safety concerns at construction sites. Belman and Voos (1995) concluded that the losses in income and state revenues from repeal of Wisconsin's prevailing wage law would far outweigh potential cost savings from lower wages. The study found that the proposed repeal resulted in $123 million of income loss in construction and a net fiscal loss to the government of$6.8 million after accounting for decreased contract costs and declines in tax revenue. Kelsay et al. (2004) calculated potential economic losses of between $318 million and $384 million with the repeal of the prevailing wage law in Missouri. This estimate included $294 million to $356 million in lost income, $5.7 million to $6.9 million in lost sales taxes, and $17 million to $21 million in lost income taxes. The authors calculated these figures based on low- to high-range annual earnings losses of$1,010 and $1,218 per construction worker. Prevailing wage laws have been shown to have generally positive effects on the construction industry by expanding the pool of construction workers trained through apprenticeship programs. Studies have shown that apprenticeship training programs are fewer in states without prevailing wage laws. In Utah, state apprenticeships plummeted 40% following the 1981 repeal of prevailing wage laws (Philips et al. 1995). In Kansas, apprenticeships dropped 38% after the 1987 repeal. As part of the Kansas study, Philips (1998) conducted a cross-state examination of construction apprenticeships in prevailing wage and non-prevailing wage states. Apprentices were in decline nationwide, but the number of apprenticeships in states with prevailing wages declined 27%, compared to 53% in non-prevailing wage states. Researchers have also examined occupational injuries and prevailing wage legislation. One study showed that construction-related fatality rates were 25% lower among workers in states with prevailing wage laws. Fatality rates were even lower in states where prevailing wages were strongly enforced (Philips 2006). Azari-Rad et al. (2005) found that, between 1976 and 1999, states with prevailing wage laws experienced lower injury rates.23 This was consistent with the hypothesis that injury rates are lower in states regulated by prevailing wage laws because the regulation encourages training and retention of experienced workers. Prevailing wage laws have also been shown to protect the bottom line of a state's construction budget. In the decade following the 1981 repeal of prevailing wages in Utah, cost overruns tripled, Adams Information 50 of 65 and Phillips et al. (1995) attributed the trend in part to a rise in change orders reflecting a shift to a low-skilled workforce and lower productivity. Data limitations have hindered further study of the question of cost overruns; most studies of contract costs use data from F.W. Dodge on the accepted bid prices,24 but these data do not capture change orders associated with cost-overruns (Azari-Rad et al. 2002). The absence of prevailing-wage-certified payrolls also appears to attract bidders who are tempted to evade their obligations to make payments for worker's compensation, Social Security, and unemployment insurance (Philips 2006). Conclusion An overwhelming preponderance of the literature shows that prevailing wage regulations have no effect one way or the other on the cost to government of contracted public works projects. And as studies of the question become more and more sophisticated, this finding becomes stronger, and is reinforced with evidence that prevailing wage laws also help to reduce occupational injuries and fatalities, increase the pool of skilled construction workers, and actually enhance state tax revenues. Endnotes 1. The two other major federal laws are the Walsh-Healey Government Contracts Act of 1936, which covered employers that manufacture or supply materials to the federal government, and the Service Contract Act of 1965, which affects suppliers of personal and business services. 2. Congress extended the definition of"prevailing wage" in 1964 to include fringe benefits. 3. The others are Arizona, Colorado, Idaho, Kansas, Louisiana, New Hampshire, and Utah. Oklahoma's law was invalidated by the courts in 1995. 4. Note that the total cost of construction contracts in this calculation excludes land acquisition; architectural design, or management fees. 5. Factor substitution assumes a homogenous labor pool, or similar skill sets among workers. 6. Belman and Voos cite an unpublished 1990 study for the Arizona District Council of Carpenters. The authors of the report found that, of the $271,000 to $350,000 saved in wages and benefits, only $100,000 was passed on to the contracting agency. 7. Armand Thieblot discussed the wage differential approach in the book, Prevailing Wage Legislation: The Davis-Bacon Act, State "Little Davis-Bacon Acts,"the Walsh Healey Act and the Service Contract Act, University of Pennsylvania, Wharton School, 1986, p. 94. 8. Wage levels on the 12 projects ranged from 5% to 123% higher than the prevailing rate. 9. Labor costs were assumed to be about 25% of total construction. 10. Benefits under prevailing wages paid $6.28 compared to $4.67 in the private sector. Adams Information 51 of 65 11. Wages were weighted according to the number of workers in the occupation and by metropolitan area. 12. This calculation assumes that labor comprises 50% of total construction costs. This determination was made following conversations with construction contractors. The authors do not state whether this estimate excludes profits or other items for contractors. 13. Prepared for the New York Economic Development Council. 14. Median wages were provided by the Bureau of Labor Statistics Occupational Employment Survey. 15. The authors state that productivity, cost of materials, and the labor share.of construction costs would remain constant for purposes of the analysis. 16. The authors collected construction cost data from in-person interviews with contractors across the country, and selected a representative sample of 215 private and public nonresidential construction projects started in 1977 and 1978. 17. The states included in the study were New Mexico, Utah, Texas, Oklahoma, Wyoming, Nevada, Arizona, Colorado, and Idaho. 18. This range included results from variations on two different econometric models. The ordinary least squares model included two variations of the dependent variable, one with a restricted definition of construction costs that included only site preparation and building construction, and one that included all costs, such as site preparation, architect and design fees, and engineering management fees. These same dependent variables were tested in the instrumental variables model. 19. The authors have not yet made their data available. 20. As Thieblot wrote: "A disclaimer to this estimate is necessary, however, because the bid-rebid process was not pure. In addition to the time difference problem, all of-the original bids were disclosed before rebids were made, which points to the high probability that some gamesmanship was at work in the process, independent of the prevailing wage rate elimination" (p. 105). Steve Allen (1983) noted Thieblot's results were not an accurate measure of federal contract cost savings (pp. 716-7). 21. Steve Allen (1983) noted Thieblot's results were not an accurate measure of federal contract cost savings (pp.716-17). 22. All three states had prevailing wage laws for school construction during some portions of the 1991-2000 study period. 23. Injury data were obtained from the Bureau of Labor Statistics, Survey of Occupational Injuries and Illnesses, 1976-99. Adams Information 52 of 65 24. F.W. Dodge bid price data exclude management costs, architectural fees, and land acquisition. Annotated bibliography Allen, Steve. 1983. "Much Ado About Davis-Bacon: A Critical Review and New Evidence." Journal of Law and Economics. Vol. 26, No. 3, pp. 707-36. Allen argues the Wage and Hour Division's wage determinations under the Davis-Bacon Act could affect construction costs, although the costs associated with errors in wage determinations may be lower than previously reported. Enforcement of prevailing wage laws could also affect total costs. Total construction costs would also be affected by factor substitution, although it's difficult to know the precise pattern as wages change. Azari-Rad, Hamid, Peter Philips, and Mark Prus. 2002. "Making Hay When It Rains: The Effect Prevailing Wage Regulations, Scale Economies, Seasonal, Cyclical and Local Business Patterns Have on School Construction Costs."Journal of Education Finance. Vol. 23, pp. 997-1012. In response to anecdotal evidence that school construction costs grew more rapidly than costs in the overall construction market, the authors examine the role of prevailing wage laws and inflationary pressures in school construction. In the model, dummy variables were used to identify public and private schools and the presence of prevailing wage laws. The results showed no significant cost differences in school construction projects related to prevailing wage laws. However, the decision by school districts to build numbers of schools at once creates"cost storms," overwhelming the local construction market by stimulating demand. The implications show that construction costs are strongly related to school district decisions on the size of the school, since economies of scale exist, but at some point the benefits will be offset by the market- crowding conditions associated with the demand for a large-scale project. Other findings showed significant cost effects for the business cycle and economies of scale. For example, the economies of scale statistic showed a 91% increase in cost every time the size of the school doubles. Azari-Rad, Hamid, Peter Philips, and Mark Prus. 2003. "State Prevailing Wage Laws and School Construction Costs."Industrial Relations. Vol. 42, No. 3, pp. 445-47. This 50-state study of school construction from 1991 to 1999 shows that prevailing wage laws have no significant effect on school construction costs. The models included controls for business cycle, building size, school type, the season in which the project broke ground, and public vs. private funding. Controlling for other effects on construction costs, there was no statistically significant increase associated with prevailing wage regulations. The findings showed economies of scale, and that doubling the size of a school raised costs by 93%. New high schools were 5-8% more expensive, possibly because of the increased complexity of science labs, language centers, and recreational specifications. Public schools cost 15.5% more than private schools, independent of prevailing wage regulations. The results counter claims that taxpayers could build additional schools at less cost by repealing prevailing wage laws. Adams Information 53 of 65 Azari-Rad, Hamid, Peter Philips, and Mark Prus. 2005. The Economics of Prevailing Wage Laws. Burlington, Vt.: Ashgate Publishers. This book presents empirical evidence on the effects of prevailing wage laws on government costs and examines whether the laws have broader social costs or benefits. Experts on prevailing wages in the construction industry contributed chapters on construction costs, retention of a skilled workforce, occupational safety in the construction industry, pensions and benefits, and the impact of the repeal of prevailing wage laws on demand for public assistance. Belman, Dale, and Paula Voos. 1995. Prevailing Wage Laws in Construction: The Costs of Repeal to Wisconsin. Milwaukee: Institute for Wisconsin's Future. Belman and Voos found that the direct costs of repealing prevailing wage regulations outweighed the presumed savings in Wisconsin. The state would be faced with a net revenue loss of$6.8 million annually. The calculation includes a loss of$11.6 million in sales and income tax revenues and a full transfer to the state of the presumed savings of$4.8 million. The authors question whether the savings would fully transfer to the government, however, citing evidence that contractors would pocket more than two-thirds of the savings. The authors note that net effects didn't include projected costs to society and harm to the construction industry, such as reduced productivity, the transition to a low-skilled workforce, a rise in occupational injuries, and cutbacks in consumer spending. An estimated 100,000 construction workers and their families would also be expected to lose about $123 million in income across the state. Bilginsoy, Cihan, and Peter Philips. 2000. "Prevailing Wage Regulations and School Construction Costs: Evidence From British Columbia."Journal of Education Finance. Vol. 24, pp. 415-32. Bilginsoy and Philips conducted a six-year analysis of the British Columbia prevailing wage law, established March 30, 1992. Half of the sample of 54 new public school construction projects commenced before the law went into effect, and half began afterward. When all controls were excluded from the model, prevailing wages appeared to raise construction costs by 16%. However, the results show no statistically significant increase in costs once business cycle, type of building, the number and size of the contractors, regional dummy variables, and time trends are factored in. Center for Government Research. 2008. Prevailing Wage in New York State: The Impact on Project Cost and Competitiveness. Prepared for the New York State Economic Development Council. Rochester, N.Y.: Center for Government Research. The Center for Government Research (CGR) estimated that prevailing wage laws raised construction costs by 36% in New York's metro regions. However, the study did not empirically test whether the increase was related to prevailing wage regulations. CGR assumes that the wage differences fully transfer in government costs. The model compared prevailing wage rates with the market rates of construction occupations in several metropolitan areas in New York and several others across the country. The study then compared labor costs to total construction costs using a Adams Information 54 of 65 prototype project, or a model created to mimic typical construction costs. It then applied the markup rates to total construction costs. The calculation assumed that productivity, material costs, and the labor share of construction remained constant. Department of Fiscal Services. 1989. Maryland's Prevailing Wage Law:A Study of Costs and Effects. Annapolis, Md.: Department of Fiscal Services. Maryland's prevailing wage laws were estimated to raise costs of state building construction 5- 15% in metropolitan areas. At the time, public school construction projects were subject to state prevailing wage laws if the state funded at least 75% of the costs. The sample included 20 new and renovated school construction projects in 1987 and 1988, 14 of which were built under prevailing wage laws. Using a multiple regression model, DFS estimated prevailing wages increased costs by $11 per square foot, or about 15%. But this first statewide study of prevailing wage laws and construction costs in Maryland was later found to have methodological problems regarding a small sample size and the lack of controls for new and renovated projects (see Prus 1999). Dunn, Sarah, John Quigley, and Larry Rosenthal. 2005. "The Effects of Prevailing Wage Requirements on the Cost of Low-Income Housing."Industrial& Labor Relations Review. Vol. 59, No. 1, pp. 141-57. In a study of prevailing wage laws and construction costs in the low-income housing sector, the authors used econometric approaches to measure the effect of prevailing wage laws on final project costs across California. The sample of 205 subsidized housing projects undertaken from 1997 to 2002 included a control group of 30 projects that were not subject to prevailing wage laws. Construction data were collected on projects approved and completed over a five-year period through May 1, 2002. Prevailing wage rates were paid on 175 of the 205 new public housing projects, although there was no attempt made to specify whether projects paid federal, state, or local prevailing wages. In California, some public housing construction was exempt from the statute, so prevailing wages were not paid on 30 of the projects. In the model preferred by the authors, instrumental variables (IV) were used to control for endogenous factors that affected prevailing wage laws across regions. The information for this variable was extracted from voter registration information, union membership, homeownership, age, and income data. The authors reasoned that political influences and economic conditions were likely to affect whether a region adopted prevailing wage legislation. The IV model showed that prevailing wage laws raised costs of low-income residential projects 19-37%. The ordinary least squares model showed that prevailing wages raised contract costs 9-11%. The conclusion reports the range of results, rather than a confidence interval on the preferred model. Fraundorf, Martha, and Mason Farell. 1984. "The Effect of Davis-Bacon Act on. Construction in Rural Areas." Review of Economics and Statistics. Vol. 142, No. 6. In the first econometric study of prevailing wages and federal construction costs, the authors used construction data they had collected in 1977 and 1978 from in-person interviews with contractors working on 215 new non-residential buildings in rural areas across the country. About half(113) Adams Information 55 of 65 of the projects were federally funded and built under the Davis-Bacon Act, and the remainder (102) were private construction projects. The results showed that public projects—all of which were subject to the Davis-Bacon Act—were generally 26.1% more expensive than private construction. At the time, labor costs (including wages, benefits, and payroll taxes) comprised no more than 30% of total costs. The authors acknowledged that the estimate of 26.1% was high. Subsequent research (Prus 1996) determined that the authors had inadvertently excluded a key variable controlling for public versus private projects. Consequently, they had captured the differences between public and private costs, but were not able to isolate the effects of prevailing wage laws. General Accounting Office. 1979. The Davis-Bacon Act Should Be Repealed. Washington, D.C.: GAO: This study has been widely cited as evidence against prevailing wage laws, despite later criticisms over its methodology. The GAO argued that the Davis-Bacon Act should be repealed because it was inefficient and unnecessary and raised federal government costs by several hundred million dollars a year. In a sample of surveys collected on 30 federal projects, wages paid were higher than the prevailing rates in 12 of the projects, and lower in others. The GAO targeted the projects with higher wage rates to show a 3.4% increase in total construction costs, which would raise federal construction costs by $228 million to $513 million annually. The study based its findings on simple accounting to show hypothetical savings from the repeal of the Davis-Bacon Act, but it was not able to establish a causal link between prevailing wage laws and government costs. The GAO acknowledged that the sample size was insufficient to calculate construction costs with any statistical validity. However, it stated that the random nature of the sample was representative of federal construction. Glassman, Sarah, Michael Head, David Tuerck, and Pal Backman. 2008. The Federal Davis-Bacon Act: The Prevailing Mismeasure of Wages. Boston, Mass.: Beacon Hill Institute for Public Policy Research, Suffolk University. This paper argues that the Davis-Bacon Act should be repealed on grounds that the wage determinations set by the Department of Labor (DOL) do not reflect the true wage prevailing in a local area. Prevailing wage rates set by the DOL were on average 13% higher than market rates, i.e., the average wages reported for construction occupations by the Bureau of Labor Statistics Occupational Employment,Survey. This difference was then applied to the federal budget to estimate a 9.91% cost increase, or$8.6 billion annually. The authors attributed the wage differences to unrepresentative surveys and measurements that resulted in an upward bias in wage estimates. Gujarati, D.N. 1967. "The Economics of the Davis-Bacon Act."Journal of Business. Vol. 40, No. 3, pp. 303-16. Gujarati's examination of prevailing wages across metropolitan and non-metropolitan counties found that prevailing wages are often set as the union wage for occupations in the construction industry. The author based this finding on 372 wage determinations from 300 counties from 1960 Adams Information 56 of 65 to 1961. The implication of the findings was that the Davis-Bacon Act inflates total contract costs because it favors union contractors who pay higher wages to workers. This study does not reflect the current decision-making process at the Department of Labor, nor does it reflect the present composition of unions in the construction industry. Keller, Edward, and William Hartman. 2001. "Prevailing Wage Rates: Effects on School Construction Costs, Levels of Taxation and State Reimbursements. Journal of Education Finance. Vol. 27, pp. 713-28. The authors showed that prevailing wage rates were an average of 17% higher in the public sector compared to wages in the private sector in Pennsylvania, and suggested that higher wages would result in sizeable cost burdens to the state. The average wage difference of$2.87, and the difference in benefits of$1.62, or 21.5% combined, would result in a total cost increase of$75 million in school construction. The study uses a sample of school construction projects from 1992 to 1997 in which school districts covered 89% of the cost and the state covered the rest. This study examines the differences between wages paid on public and private construction contracts. It does not empirically observe how these costs would be passed through, but it assumes that lower wage costs would mean lower government costs. Kelsay, Michael, Randall Wray, and Kelly Pinkham, 2004. The Adverse Economic Impact From the Repeal of the Prevailing Wage Law in Missouri. Working Paper, Department of Economics, University of Missouri. An input-output analysis using RIMS II multipliers estimated total economic losses of between $318 million and $384 million annually from proposed repeals of prevailing wage laws. The breakdown included $294-356 million in lost income, $5.7-6.9 million in lost sales tax collections, and $17.7-21.4 million in lost income taxes. The low and high numbers were based on estimated annual income losses of$1,010-$1,218 per construction worker. Additionally, the authors calculated societal impacts of better pay and benefit packages for workers under prevailing wage laws. 'The impacts for states without prevailing wage laws include the entry of smaller, less- experienced construction firms into the construction market; higher rates of employee turnover raised the risk that firms might hire unskilled workers more prone to injuries. Kersey, Paul. 2007. The Effects of Michigan's Prevailing Wage Law. Midland, Mich.: Mackinac Center for Public Policy. This report updates the previous Mackinac study but did not address the various criticisms over methodology. The author takes the BLS median and adjusted wages for construction occupations and estimates that 10% of Michigan's construction funding could have been saved if the state's prevailing wage law were repealed. Kessler, Daniel, and Lawrence Katz. 2001. -prevailing Wage Laws and Construction Markets."Industrial and Labor Review. Vol. 54, No. 2, pp. 259-74. The authors examine the time trends of the repeal of state prevailing wage laws on union and race characteristics in construction labor markets. Kessler and Katz use Census and Current Population Adams Information 57 of 65 Survey data and a fixed-effects econometric approach to analyze wages and unionization rates over time. The model compares relative wages for blue-collar construction and non-construction workers in repeal and non-repeal states over a 24-year period. The overall effect of prevailing wage laws on construction labor costs is small (2-4%), although this varies widely across groups. This calculation was based on a 10% estimated decline in union worker incomes. Because union members account for one-quarter of all construction workers, the total impact on labor costs was 2-4%. The results suggest the repeal of prevailing wage laws negatively affects union and white workers, while it may benefit black construction workers. This study is limited to an analysis of wages and does not include total construction costs in the empirical model. Philips, Peter, Garth Magnum, Norm Waitzman, and Anne Yeagle. 1995. "Losing Ground: Lessons From the Repeal of Nine Little Davis-Bacon Acts." Working Paper, Department of Economics, University of Utah. The repeal of prevailing wage laws was found to reduce worker earnings, cut worker training programs, increase occupational injuries, and increase cost overruns. These findings were based on an examination of the effects of prevailing wage laws in nine states that had repealed the legislation, nine other states that never had the legislation, and 32 states with prevailing wage laws. In the nine states that had repealed prevailing wage laws, worker earnings declined $1,477 a year, a drop that would result in substantial losses in income and sales tax revenues to the state. Controlling for downward trends in construction training, state employment rates, and regional differences in training availability, states that repealed prevailing wage laws reduced construction training by 40%. In the case of Utah, declines in training produced a substantial shift to low-skilled workers, declining productivity, and a tripling in cost overruns compared to the previous decade. Occupational injuries rose 15% in states that had repealed the legislation. Worker injuries were responsible for lost workdays and higher government costs for worker's compensation. Philips, Peter. 1996. Square Foot Construction Costs for Newly Constructed State and Local Schools, Offices, and Warehouses in Nine Southwestern and Intermountain States: 1992-1994. Prepared for the Legislative Education Study Committee of the New Mexico State Legislature. This study demonstrated that square foot construction could be less expensive in prevailing wage states compared to states without prevailing wage laws. The study took a cross-section of government construction projects across the Intermountain and Southwestern states, five of which had prevailing wage laws and four of which did not. The states were New Mexico, Utah, Texas, Oklahoma, Wyoming, Nevada, Arizona, Colorado, and Idaho. The data were disaggregated based on building type: offices, warehouses, elementary schools, middle schools, and high schools. Once the data were disaggregated by building type, the average square foot construction costs were shown to be $6 less in the sample of states with prevailing wages laws. The results show that productivity may have played a major role in construction cost outcomes and that it can offset potential wage increases. Philips noted a 1979 BLS study of aggregated school construction costs that showed total labor costs were the same in the South and Northeast, although hourly Adams Information 58 of 65 wages were 50% higher in the Northeast. Productivity could explain why a higher hourly wage on school construction in the Northeast did not result in higher total labor costs. However, total labor costs were the same in the South and Northeast, despite the hourly wage differences. Philips, Peter. 1998. Kansas and Prevailing Wage Legislation. Report prepared for the Kansas Senate Labor Relations Committee. In this case study, school construction costs, worker wages, and other societal costs were examined before and after the 1987 repeal of prevailing wage laws in Kansas and compared with other Great Plains states. Philips used statistical methods to compare mean and median costs of new schools in Kansas and surrounding states from July 1991 to June 1997. Of 365 new elementary schools in the Great Plains states with prevailing wage laws, construction costs were not statistically different from zero controlling for other cost factors. Average construction earnings fell faster in Kansas and other surrounding states without prevailing wage laws after the 1987 repeal. After the repeal, real worker earnings fell 11% in Kansas and in surrounding states without prevailing wage laws, compared to a 2% decline in states with prevailing wage laws. The loss of earnings would have resulted in lost tax revenues to the state. Collective bargaining in construction declined after the state's repeal, and this decline affected worker training, pay and benefits, occupational injuries, and lost time from work. Apprenticeship training programs declined in Kansas and surrounding states without prevailing wage laws from 1973 to 1990. In Kansas, apprenticeships slid 38%, from an annual average of 861 in the 1970s to an average of 530 in the first four years after the law was repealed. In the sample of states with prevailing wage laws, apprenticeships declined an average of 27% during the period, compared to a decline of 53% in states without prevailing wages. Occupational injuries rose 19% in Kansas after the repeal of prevailing wage laws, or from 11 to 13 injuries per 100 construction workers. Philips compared the number of injury cases per worker from 1976 to 1991 using the Bureau of Labor Statistics industry survey of occupational injury and illness. Total injuries rose 26%, from 11 to 14 per 100 construction workers, and serious injuries rose 14%, from 4.7 to 5.3 injuries per 100 construction workers in states without prevailing wage laws. Annual average employer contributions toward pensions and health insurance in Kansas fell 17% after the repeal of prevailing wage laws, according to data obtained from the U.S. Department of Labor for the years 1982-86 and 1987-92. Philips attributes this drop to the shift away from collective bargaining following the repeal in Kansas. Philips, Peter. 1999. Kentucky's Prevailing Wage Law:Its History, Purpose, and Effect. Working Paper, Economics Department, University of Utah. Prevailing wage laws in Kentucky provided a unique sample because some projects were exempt from the law until it was reinstated in 1996. Kentucky did not repeal its law, but it exempted school construction from the statute. In 1982, schools and some city projects were exempt from the 1940 prevailing wage statute. It also exempted city, county, and regional governments from construction projects paid for with less than 50% of state funds. In 1996, it expanded its law to include public schools and most local and county construction projects. The study was in response Adams Information 59 of 65 to charges that prevailing wages discriminate against minority workers and arguments that the legislation reduced the number of entry-level jobs. Philips used statistical methods to analyze the relationship between prevailing wage laws and the racial composition of the construction industry. The results showed no measurable relationship between unemployment rates by race in construction and state prevailing wage laws. Philips, Peter. 2001a.A Comparison of Public School Construction Costs in Three Midwestern States That Have Changed Their Prevailing Wage Laws in the 1990s: Kentucky, Ohio, and Michigan. Working Paper, Economics Department, University of Utah. This study takes advantage of a natural experiment with the judicial suspension of the prevailing wage law in Michigan (1995-97), the adoption of prevailing wages for school construction in Kentucky (1996), and the repeal of prevailing wages for school construction in Ohio (1997). About half of the 391 new schools in the sample were built under prevailing wage legislation in those three states from 1991 to 2000. The study accounted for the problem of building costs climbing faster than inflation during the 1990s, and included controls for rising construction costs for new public schools in all three states from 1991 to 2000. The results showed that prevailing wage regulations did not raise construction costs with any statistical significance. Other findings showed that urban schools cost 10.5% more than rural schools, controlling for other factors such as building size. Ohio schools cost 12.6% less than schools in Michigan; Kentucky schools cost 14.6% less. The decision over when to break ground was shown to affect total cost: projects started in the fall added 10% to total costs compared to projects that broke ground in the spring. Philips, Peter. 2001b. Four Biases and a Funeral. Dr. Vedder's Faulty Experiment Linking Michigan's Prevailing Wage Law to Construction Employment. Economics Department, University of Utah. Examining a study by the Mackinac Center for Public Policy, Philips discovered that the data and structure of the methodology led to internal and external validity problems. Four primary biases were produced by the Mackinac research design, including the fact that results did not hold in other states. The biases were listed as the selection of 30-month-long time periods, a seasonal adjustment that did not reflect construction industry patterns, employment adjustments based on unseasonably warm weather on the end points of the data, and the inability to replicate the results in other states. Mackinac's hypothesis that employment increases after the repeal of prevailing wage laws and declines after their adoption was upheld in the case of Michigan, but Philips attributes this to pure luck. Contrary to Mackinac's findings, looking beyond Michigan employment actually declined in states that repealed prevailing wages. It also declined in Oklahoma, where the law was judicially annulled, and in Ohio, where school construction was exempt from prevailing wages. The states that repealed prevailing wage laws were Louisiana, Kansas, Colorado, New Hampshire, and Idaho. In Kentucky, where the law was applied to schools in July 1996, employment increased. Adams Information 60 of 65 Philips, Peter. 2006. Construction: The Effect of Prevailing Wage Regulations on the Construction Industry in Iowa. Working Paper, Economics Department, University of Utah. Productivity was found to play a major role in explaining why less expensive labor does not always result in lower government construction costs in the absence of prevailing wage laws. Using 2002 Census of Construction data, Philips compared average annual incomes of construction workers and the value-added per construction worker by state. Workers in states with prevailing wage laws earned more income, but they also had higher productivity. In prevailing wage states, construction workers earned an average of 15% more in wages and about 25% more in Social Security, unemployment insurance, and worker's compensation. States with prevailing wage laws showed 13-15% more value-added per worker compared to states without the legislation. The result showed that prevailing wage laws raised productivity, possibly by inducing better management of projects, higher training standards, and more capital investment. Prevailing wage laws also promoted collective bargaining activities that encouraged apprenticeship programs necessary to improve workmanship and expand the pool of skilled workers. On the other hand, states without prevailing wage laws faced higher costs of maintenance and repair and had transitioned to a low-wage, low-skill workforce. Non-prevailing wage states created an environment where contractors would cut corners on safety, training, and payroll regulations in an attempt to offer lower bids. In Iowa, an estimated 2,500 workers were misclassified as independent subcontractors in order to save on payrolls. The misclassification of workers deprives the state of worker compensation and unemployment insurance payments, and allows the contractor to dodge health insurance, pension, and Social Security contributions. Prus, Mark. 1996. The Effect of State Prevailing Wage Laws on Total Construction Costs. Working Paper, Southern University of New York, Cortland. Prus replicated the Fraundorf model and discovered that the study did not control for cost differences between public and private construction. Prus used multivariate analysis to compare construction costs in states with prevailing wage laws, rather than compare federal-level construction projects that were subject to the Davis-Bacon Act with private construction contracts. The data were obtained on offices, hospitals, schools, garages, and warehouses. Controls were included for building material, building type, and building height, and a dummy variable was used to mark new or renovated construction. The results showed that public construction was 32% more expensive than private construction in states without prevailing wage laws. Controlling for differences between public and private construction, there were no statistically significant cost effects related to prevailing wage laws. This study demonstrated that the Fraundorf study had captured the cost difference of public-private construction rather than the effects of prevailing wages. Prus attributes the cost differences to government specifications and building design. Prus, Mark. 1999. Prevailing Wage Laws and School Construction Costs:An Analysis of Public School Construction in Maryland and the Mid-Atlantic States. Prepared for the Prince George's County Council, Maryland. Adams Information 61 of 65 Most of the schools built during the 1990s in Maryland were not subject to the state's prevailing wage laws, in effect since 1969. While the legislation covered most state-funded public school construction in the 1980s, changes in the formula and allocation of prevailing wage determinations in 1989 excluded most school construction from the prevailing wage requirements. The statute required the payment of prevailing wages for public construction projects that received 50% or more funding from the state, and for public school construction that received at least 75% from the state. The law was later changed to reduce the threshold for school construction to at least 50% funding from the state. In Maryland, Allegany County and Baltimore City had enacted prevailing wage laws for school construction and public works. The presence of prevailing wage laws in some places in Maryland and the region, but not others, allowed Prus to empirically examine the effects on government construction costs. First, Prus replicated the methodology of a Maryland Department of Fiscal Services study and discovered that the authors had excluded controls to differentiate between new and renovated projects (see Department of Fiscal Services 1989). If this control were included, then the results did not show statistically significant increases in costs. The DFS model had overestimated costs because it included site preparation in the definition of cost and did not control for regional differences. The author noted that the most expensive school in the sample was built without prevailing wages. In a separate experiment, Prus examined contract costs of schools built in Maryland with and without prevailing wage laws. The results showed no statistically significant effect on costs. The model included controls for building materials, types of school, a marker for new or renovated project, a marker for public or private school, and the height of the building. Public schools were 40.6% more expensive than private schools regardless of prevailing wages, and economies of scale were evident. High schools were 33% more expensive than elementary schools. The results also show a doubling in the building size would raise costs by 68%. A cross-state experiment compared square foot construction costs in Maryland and other mid- Atlantic states. Although construction costs appeared to be higher in prevailing wage states based on descriptive data, a linear regression model showed that the differences were related to regional factors. Prus concludes these considerable cost differences exist because school construction in the South was less expensive than in the northern states of the mid-Atlantic region. In addition to regional differences, building type and specifications also impacted total construction costs. Schools in the sample of prevailing wage states appeared to be 25% more expensive, until the data were disaggregated by school type. Elementary schools were cheaper while middle and high schools were more expensive in prevailing wage states. Costs of construction of public schools in states without prevailing wage laws were 11.3% higher per square foot than costs for private schools. Prus compared square foot construction costs by school type in prevailing wage and non- prevailing wage states. Using linear regression, he compared construction costs controlling for building type, size, and private vs. public schools. Controlling for other factors, prevailing wage laws were shown to have no statistically significant effect on costs. Adams Information 62 of 65 Thieblot, Armand. 1986. The Davis-Bacon Act, State "Little Davis-Bacon-Acts, the Walsh-Healey Act, and the Service Contract Act. Philadelphia: Wharton School, University of Pennsylvania. Thieblot conducted a time-series analysis of contract costs before and after President Nixon's temporary suspension of the Davis-Bacon Act. The author examined new bids submitted by contractors during the 34-day suspension in February and March 1971. The construction contracts that were re-bid were not yet awarded. The re-bids were estimated to save less than 1%, or about $240 million a year on all federal construction contracts, compared to bids that were originally submitted. The inflation-adjusted estimate showed a 4.74%, or about $1.1 billion, difference in the original and new bids. Thieblot acknowledged that results might be biased because full disclosures of the bids were given before the re-bid process and he was unable to control for contractors altering their bids in an attempt to game the system: "A disclaimer to this estimate is necessary, however, because the bid-rebid process was not pure. In addition to the time difference problem, all of the original bids were disclosed before rebids were made, which points to the high probability that some gamesmanship was at work in the process, independent of the prevailing wage rate elimination." It was unclear if Thieblot's analysis measured the contractors' ability to use information to their advantage, or if the experiment captured the effects of the suspension of the Davis-Bacon Act, Vedder, Richard. 1999. Michigan's Prevailing Wage Law and Its Effects on Government Spending and Construction Employment. Midland, Mich.: Mackinac Center for Public Policy. This study assumes prevailing wage laws impose additional costs on the state and lower construction employment in Michigan. The study's methodology relied on simple descriptive statistics and was criticized for numerous shortcomings. The results showed construction jobs grew by 11,000, or 13%, after the prevailing wage law was repealed, but critics cited methodological issues to refute this claim (see Philips 2001b). Using a series of hypothetical calculations and a finding that showed prevailing wage rates were 10% higher in the Detroit area, the study also estimated that prevailing wage laws raised construction costs by $275 million: "If labor costs were 25 percent of the total value of a construction contract, and if average labor costs per hour were increased 40 percent by prevailing wage laws, this would drive up total construction by 10 percent....Assuming a 10-percent differential...the state of Michigan could have saved about $251 million by eliminating prevailing wage provisions."The study did not provide evidence that the wage difference in the Detroit area was representative of the rest of the state. It also did not provide any empirical support to show differences in wage rates would be passed through as government costs. Rather, it allocated wage differences to government costs without controlling for any other factors. About Economic Policy Institute The Economic Policy Institute is a nonprofit, nonpartisan think tank that seeks to broaden the public debate about stragegies to achieve a properous and fair economy. The Institute stresses Adams Information 63 of 65 real world analysis and a concern for the living standards of working people, and it makes its findings accessible to the general public, the media, and policy makers. EPI's books, studies, and popular education materials address important economic issues, analyze pressing problems facing the U.S. economy, and propose new policies. Acknowledgements I would like to thank Michael Ettlinger, Ross Eisenbrey, Peter Philips and Dale Belman for their feedback and assistance with this report. About Author Nooshin Mahalia joined the Economic Policy Institute in 2007. Prior to joining the Economic Analysis and Research Network at EPI, she worked at the Economic Development Institute and previously for news organizations in the metropolitan Atlanta area. Her areas of interest include regional economic development and technology policy. Adams Information 64 of 65 RECEIVED 06/19/2009 316:58 213-483-4419 L4/0C BLDG TRDS CNCL t9l ) 4,u,441 iMA; OF ',"I State Budding& Construrfion Trades Council of California,AFL-CIO Contact Sand,, Harmon, CormuquCations Director f9 16-1443-3302 Fax(916)443-8204 shani (W son ,sbete-org BULLE10IN www.sbctc.ora August 19, 2009 Breakthronh in Vista PrevailiL7g Wage Case! - Supreme Court Grants Review of Building Trades' Petition By,a unanimous 7-0 vote,the California Supreme Court today agreed to bear the SBCTC-s petition in our lawsuit against the City of Vista, on the question of whether charier cities can exempt contractors on their projects from state law requiring contractors on public work-to pay prevailing Ii In wages. The decision to grant review is great news for the building trades because the Supreme Court grants review of only a small fraction of the thousands of petitions it receives each year, Now the Supreme Court will consider the SBCTCs argument that prevailing Nvages must be paid on all public works projects in California. SBCTC filed the lawsuit in 2007 after the Vista City Council passed an ordinance declaring that city construction projects are exempt from state law requiring that contractors must pay prevailing wages and hire apprentices on public Nvorks projects. The SBCfC's lawsuit contends that charter cities may, not exempt contractors from the state prevailing wage laws because the payment of prevailing wages and employment of apprentices are matters of statewide concern,riot purely local matters. Among other things,the payment of substandard Nvag,es in one city can drive doxvri pay scales, depress the economy, and worsen workers quality of life across ail entire region. The SBCTC pointed out that the 1932 precedent allOwnia contractors in charter cities to avoid the prevailing wage law is based on outdated caselaw that has since been overruled. The City of Vista prevailed in the trial court and before a sharply divided court of appeal, where a dissenting justice quoted SBCTC President Bob Balgenorth at length in explaining why the prevailing wage law addresses matters of more than just local concern. The Supreme Court has now unanimously agreed to consider reversing those decisions. Attorneys will file briefs and then the court will hear oral arguments before ruling. A decision is likely to be issued in 12 to 18 months. Adams Information 65 of 65 ATT ACHMENT #3 UPDATED CHARTER REVIEW COMMISSION TIMELINE: T 6/18 9/01 911 10/06 90/20 111Q3 19/17, ; 12I0? 92/18 1/05 "'01/2?* 2/02 2l18 3/1 3%96 4L8 Status Consent,Items X S Sects. 101 105 307, 404 405,'603, 604, ' Z06 Section 200 Council-Administrator S Government 0- •U Section 300,Elective Offices Discussion on S Elected Mayor � U Section 302 Council Compensat+on R a� N W Y sg. '° V Section 303 Meetings Possible set by g °' U S r olco Ordinance o Resutio ns — , s, t i — YSecbon 304 Subsection^(b) Council control of M X X a S all legal b'usiness:of the.city o 0 i c -- -- - -- M u O: Q Section 305 306='Mayor's Role.-Review and o x x °; S discuss"adding"language on.Mayor Rotation i � o — Section 307 Non:Interference with g o S Administration M Section 308 Bonds Compliance with-.State- X N z o 0 D Law o c t- g fir: 0 Section09 C+tyAttomey Discuss Making ': m S Appointed; = o o 0 Suction 310 Crty,Clerk-Discuss Making cn S Appointed' o Format",for°MaintainingRecords °' Section'311 City Treasurer=Discuss.Making X S Appointed Qualifications z Section 312- Vacanc+es"=MG'ral`Turpitude X 0 S 1/14/2010 5:48 PM Charter Review Timeline Topic C g/18 9/01 8/15 10106 10/20: 11/03- 11I17 12/y01 ",a 12/15 . 1105 .01/V1', .2/02 v18;, 312 3/16 416 Status. Section;313 Conflict of Interest . Nepotism- X S See Municipal Code and:Adm :Reg. 4I Section 400 404 Cit AdmrnistratorlAssf: ° S Y X City Adm" CI?ange/Update Titles Hrre/Frye Dept,Heads - U Sectrons 500 503 Ordinances;<Resolufions, X S f'ublicatican, Legal Notices Second"Reading Ordinances` U w U 3 I C Sections 600 602 Crty`Budget Change'in X S Fisca!Year Submission to Council 3g not 60 days C, 06 Sectrons 605 City Budget Allow Capital X N U S CO Protects„tq tie Carried forwaff''frO one FY to'` thek Next o 0 o U U Sectionk6g7(b) 2,- Retireent Tax `; X '� D m o c Section, 608, 610, 611 Taxes Update to X o S :contarm with State taws CO Sectron609 Estate Transfer Wax Possible`` X o = S Eliminat on c a Section 612 Measure C Possibly.lncrease X R ,and Index Dollar Amount _ = C: Sections 613-614 Contracts N �, X ED •j4 `Increase/Eliminate Qollar.Amount&. Possibly Index to CP! Financial Viability of Bidders _ •,.' Prevailing INajb."Biscussion z° Section s15-City Francirses X o S Section 616 Independent Audit' Higher Level X S * Meeting Moved to THURSDAY 2 1/14/2010 5:48 PM Charter Review Timeline 2/0 01I21* �2/02 2/18 3/2. 316 4l6 Staus8118 9/01 9116 10106 10120 11103 11117 Topic Section 61-7-Infrastructure (c)'Update Board . . D Name Article 77 Elections-Campaign Finance Reform x x S Secti6n;800- Transitions-,Review afterElection`, xS Sections' Section 809 Defih tions Possibly Eliminate X S $ubseetion(e) Masculine includes;Feminine �' 0) C7 Section 802 Charter Violations 0 S Discuss eliminat4n dollar-amoun(&` - - - CO setting fines byZ4nance/reso, c = Section 803 Property Rights"',`,,,.' X 0 E°- S Policy Question Proposed Miscetianeous`Additions to the City. ED Charter: R,eiriew of Langaage ED VoterApprovai of a Major General Plan, X Q Amendment 'Unresolved items R LEGEND X Recommended Date for Discussion C Completed D Discussion Needed ED Extended Discussion Needed PH Public Hearin Q No Substantive Issue-Possibly Quick Decision R Reconsider S Straw Vote Taken * Meeting Moved to THURSDAY 3 1/14/2010 5:48 PM AGENDA Tues., Jan. 05, 2010, 6:00 PM City Hall, Room -8 1. Roil Call: Jerry Bame, Ralph Bauer, Mark Bixby, Patrick Brenden, Shirley Dettlo#f, Dick Harlow, Gregory Hartnett, Marijo Johnson, Gary Kutscher, Joe Shaw, Ray Silver, Sharie Sneddon, Tim Stuart, Dave Sullivan, Shane Whiteside II. Public Comments; An opportunity for the public to comment on any item of interest, either in general or specific to this agenda, that is within the subject matter or jurisdiction of the Commission. Comments will be limited to no more than 3 minutes. Speakers are encouraged to submit their comments in writing. Each Commission Member will receive a copy of all the submitted comments. Ill. Approval of Minutes from the December 15 Commission meetings. IV. Discussion on a request to add language regarding General Plan amendment to the Charter similar to that in Newport Beach Municipal Code 423—Traffic Density. V. Discussion as requested on Section 607(b) 2 - Retirement Tax VI. Under Article VII of the Charter- Campaign Finance VII. Commissioner Requests: Questions, comments, or suggestions for discussion at a subsequent meeting of the Commission = Recommendations from Commissioner Mark Bixby Vlll. Adjourn to the next regular meeting scheduled for Tuesday, Jan 21 at 6 PM in City Hall Room B 8. Attachments: 1. Letter from Karen Jackie, President of Huntington Beach Tomorrow 2. Memo from city staff on the city's General Plan Process 3. Memo from city staff on the retirement property tax. 4. Newport Beach Municipal Code 423 5. H.B. Municipal Codes Section 2.07—Campaign Reform 6. Summary Report on recent amendments on Municipal Code. 2.07 7. Sonenshein Memo dated Oct. 31 on Campaign Finance 8. Matrix of other cities campaign finance law. 9. Recommendations from Commissioner Bixby on Article VII of the City Charter 10. Recommendations from Commissioner Bixby on additions to the City Charter 11. Letter dated 09-14-09 from Ed Kerins regarding Section 607(b)2 of the Charter 12. Information from David Rice on his request regarding the General Plan * Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. COMMISSIONER MARK BIXBY ITEMS: 1. Add new charter section to require electronic filing & Internet publication of Statements of Economic Interests and campaign finance disclosures from elected city officials Statement of Issue: Require key disclosure documents to be filed electronically to improve legibility, usability, and timeliness. Require Internet publication of these documents for easy public access. 2. Add new charter section to provide safe harbor for prompt refund of improper campaign contributions Statement of Issue: Current Huntington Beach Municipal Code (HBMC) 2.07 campaign reform ordinances do not provide any means of"curing" inadvertent violations. This proposed charter amendment creates a "safe harbor" time period whereby improper contributions may be refunded promptly without penalty. 3. Add new charter section to regulate surplus campaign funds. Statement of Issue: Prevents elected office holders from carrying forward surplus campaign funds that oculd be used to gain an unfair advantage when running for re- election. 4. Add new charter section to require the city council to determine at least once every 10 years whether charter review is warranted. Statement of Issue: Over time, current city practice has diverged from strict charter compliance as needs have changed in the decades between major charter revisions. This proposal will require the city council to determine at least once every 10 years whether charter review is warranted. 5. Prohibit the use of eminent domain to transfer propriety from one private owner to another private owner for commercial profit-making purposes. Statement of Issue: In the past the city has used eminent domain in redevelopment projects to transfer property from one private owner to another for the purposes of furthering community-wide economic growth. In Kelo v. City of New London, 125 S. Ct 2655 (2005), the US Supreme Court by a split vote of 5-4 upheld such use of eminent domain. Public backlash was swift, and many states and municipalities reacted by passing laws prohibiting Kelo-style eminent domain. 6. Implement Monterey-style Neighborhood Improvement Program (NIP)to allow residential neighborhoods to share the benefits of tourist-oriented development Statement of Issue: Monterey and Huntington Beach both share a common history of being transformed from sleepy coastal towns into major tourist destinations in relatively short periods of time. In addition to bringing in money, tourism also brings negative impacts which reduce residential quality of life. Monterey's solution to restoring balance between tourism and the residential neighborhoods was to implement a Neighborhood Improvement Program that dedicates a portion of the Transient Occupancy Tax (TOT)to funding neighborhood capital improvements selected by residents appointed to a Neighborhood Improvement Program Committee. I propose a similar solution for Huntington Beach. 7. Require park in-lieu fees to be spent on parkland development whenever the per-capita park acreage ratio is below the requirement specified in the General Plan. Statement of Issue: The city's General Plan requires 5 acres of parks(including beaches) for every 1,000 residents. In 1992 the city exceeded this requirement by 49 acres, but by 2009 the city fell short of the requirement by 4.2 acres, and the Beach-Edinger Corridor Specific Plan is poised to dramatically worsen the deficit. My proposal would require that whenever the current per capita ratio falls short of the General Plan, park in-lieu fees shall only be spent on parkland development. 8. Add new charter section to require the city council to determine at least once every 10 years whether charter review is warranted. Statement of Issue: Over time, current city practice has diverged from strict charter compliance as needs have changed in the decades between major charter revisions. This proposal will require the city council to determine at least once every 10 years whether charter review is warranted. 9. City-owned tidelands Statement of Issue: City-owned tidelands provide important, valuable public benefits and should be subject to protections similar to Measure C. � � � �'" k ` a r � �� '� ����: �` z . � +�� .. , HUNTINGTON BEACH TOMORROW P. O. BOX 865, HUNTINGTON BEACH, CA 92648 "Making a difference today,for Huntington Beach tomorrow" Phone: (714) 840-4015 E-Mail: infoohbtomoiTow.org Website: www.hbtomorrow.org December 22, 2009 Charter Review Commission City of Huntington Beach Huntington Beach CA 92648 Subject: Commission - Staff Operating Procedures The staff made their Measure C presentation at the December 15 commission meeting as a late communication. The staff knew when the commission would be having the Measure C meeting months ago. The staff recommendations went uncontested at the meeting because they were a Late communication and not available to the public the previous week. Huntington Beach Tomorrow is concerned that this might happen again. Late communications of substance have the following effects : They deprive the public the ability to respond They do not give the decision makers adequate time to consider the merits of the communication They can give the impression that "someone is trying to slip something by" HBT recommends the commission put staff practices into place that prevent the above from occurring again. Full disclosure and transparency in a timely manner is paramount to retain the trust of the citizens. Thank you for your consideration of this matter. sincerely yours, r � Karen Jackie President Huntington Beach Tomorrow Copy: Fred Wilson, City Administrator �- °` ��:: ' .:'.: ff' C .�� a�. ry _ 1 9� L � $` 4 �. &` � i � �' '2- o, i �, 1 CITY OF HUNTINGTON BEACH Inter-Department Communication Planning Department TO; Fred A. Wilson,City Administrator FROM: Scott I-less, AICP, Director of Planning& Building�44 DATE: December 22, 2009 SUBJECT: INFORMATION FOR CHARTER REVIEW COMMISSION—CITY PROCESS FOR GENERAL PLAN AMENDMENTS The purpose of this memo is to provide information regarding the City of Huntington Beach process for making land use decisions, specifically General Plan amendments. This inemoalso contains information regarding the City of Newport Beach process for approving "major" General Plan amendments. Citv of Huntington Beach process for ametidine,the General Plan The City defines a"major amendment" as one that amends the land use map or changes the text of more than one element of the General Plan. A "minor amendment" is a text change that affccts only one General Plan element. The process for amending the City's General Plan, for both major and minor amendments,requires the following steps: 1. Environmental review in accordance with the California Environmental Quality Act (CEQA) — All potential environmental effects associated with a General Plan Amendment must be evaluated based on specific significance criteria for 17 impact areas. These impact areas include, among others, traffic, noise, air quality and land use and planifing. 1 Staff analysis of the proposed General Plan Amendment An analysis of the proposed General Plan Amendment's consistency with the goals, policies and objectives of the City's General Plan elements is required in addition to any other relevant information that would help the Planning Commission and City Council make an informed decision on the amendment. The analysis is generally provided in a staff report and is made available to the public as well so that the public may make an informed opinion about the amendment,particularly in providing public input or testimony. 3. Planning Commission and City Council noticed public hearings — Notification is required in accordance with the Huntington Beach Zoning and Subdivision Ordinance (HBZSO), which is consistent with California Government Code Section 65090—65091. In general, notification for each public hearing consists of placing an ad in the ne-wspap,.er, mailing to property owners and tenants within the area as well as within a radius of 1,000 feet,and posting on the City's website. (3M,dmUfQ00qU222jv I&doc City of Newport Beach—Charter Section 423 In 2000,the City of Newport Beach approved City Charter Section 423 (Measure S)that requires voter approval of "major amendments" to the City's General Plan. Section 423 states that a "'major amendment" is one that would significantly increase traffic (100 peak, hour trips more than the use allowed under the General Plan), intensity (40,000 s.f more than the use allowed under the General Plan), or density, (100 more units than the use allowed under the Gencral Plan) of allowed and proposed uses. The purpose of Charter Section 423 is "...to give the voters the power to prevent Newport Beach from becoming a traffic-congested city, by requiring their approval for any change to the Cftv's General Plan that may significantly increase allowed traffic: and also to make sure that major changes do not escape scrutiny by being presented piecemeal as a succession of small changes." QLity-__qf�New o�rtBeachPRr(,c--,S_ The procedures for submitting a major amendment to the voters include the following: 1. Environmental review in accordance with the California Environmental Quality Act (CEQA) All potential environmental effects associated with a General Plan Amendment must be evaluated pursuant to CEQA guidelines. 2 Planning Commission and City Council staff reports that contain information related to: - whether the amendment would require voter approval pursuant to Section 423 - any other information relevant to the amendment including associated project or land use approval and environmental analysis that would help the Planning Conunission and City Council make an informed decision as well as help.the public develop informed opinions about the amendment. 3. Planning Commission and City Council noticed public hearings. 4. Determination by the City Council, during the noticed public hearing, if the amendment requires voter approval pursuant to Section 423. COMPARISON OF GENERAL PLAN AMENDMENT PROCESSES AP -idi� Geneof Na i'�'mer a 0ees an�A j S 7, " teq ese b I Public notice in accordance with State Yes law required'? Noticed ning Commission public Yes Yes hearing Plan rNuired? Noticed City Council public hearing Yes Yes wired?re Environmental in accordance Yes Yes with CEQA required? Vote of the people required? No Yes* *Vote of the people required if the amendment meets the criteria specified in Charter Section 423- XC. Bob flall,.Deputy City Administrator Mary Beth Broeren,Planning Manager Herb Fauland.Planning Manager Pat Dapk-us,Senior Administrative Analyst G:1.Adml,Tf:2009A 222jv 1&doc TZ� �y :y\ 4 .. `{:\:. x,,ew a� � . .>.�y. . .�.�NT,�� � . . . ,w... s»� ���� CITY OF HUNTINGTON BEACH INTER-DEPARTMENTAL COMMUNICATION FINANCE DEPARTMENT TO: Fred Wilson, City Administrator FROM: Bob Wingenroth, Director of Finance DATE: December 22, 2009 SUBJECT: LOSS OF THE RETIREMENT PROPERTY TAX The retirement property tax has been levied each year since 1966. Currently, the City's retirement property tax rate is $0.015 per $100 of assessed valuation. The annual tax impact for a parcel with an assessed valuation of$500,000 is about $75. We estimate that the city's general fund will receive $4 million from the tax in the current fiscal year (FY 2009/10). In terms of positions, $4 million supports 31 city jobs. The loss of this revenue would be devastating to the general fund in the current and future years. This revenue represents 2.2% of our$181 million general fund budget. This loss, coupled with the known revenue shortfall of over $3 million will necessitate additional cuts of 4% in the current fiscal year. We are facing a $5 million deficit in FY 2010/11 before accounting for the loss of an additional $4 million. Adding the loss of this tax revenue to our deficit would require us to reduce the FY201 0/11 budget by 5%. -m �... From the City Of Newport Beach's Municipal Code Section 423. Protection from Traffic and Density.* Voter approval is required for any major amendment to the Newport Beach General Plan_A"major amendment" is one that significantly increases the maximum amount of traffic that allowed uses could generate, or significantly increases allowed density or intensity. "Significantly increases" means over 100 peak hour trips(traffic), or over 100 dwelling units (density), or over 40,000 square feet of floor area (intensity); these thresholds shall apply to the total of. 1) Increases resulting from the amendment itself, plus 2) Eighty percent of the increases resulting from other amendments affecting the same neighborhood and adopted within the preceding ten years. "Other amendments" does not include those approved by the voters. "Neighborhood"shall mean a Statistical Area as shown in the Land Use Element of the General Plan, page 89, in effect from 1988 to 1998, and new Statistical Areas created from time to time for land subsequently annexed to the City. "Voter approval is required" means that the amendment shall not take effect unless it has been submitted to the voters and approved by a majority of those voting on it Any such amendment shall be submitted to a public vote as a separate and distinct ballot measure notwithstanding its approval by the city council at the same time as one or more oth er amendments to the City's General Plan.The city council shall set any election required by this Section for the municipal election next following city council approval of the amendment, or, by mutual agreement with the applicant for the amendment, may call a special election for this purpose with the cost of the special election shared by the applicant and the City as they may agree. In any election required by this Section, the ballot measure shall be worded such that a YES vote approves the amendment and a NO vote rejects the amendment; any such election in which the ballot measure is not so worded shall be void and shall have no effect. This section shall not apply if state or federal law precludes a vote of the voters on the amendment. (Added by amendment effective December 15, 2000) : . . : . . .. . _ . . . v NT , {} / \ / � _�ƒ<: � �y� �. \ y� CHAPTER 2.07 CAMPAIGN REFORM (2507-11/81,2721-10/84,2818-3/86,*3220-1/94,3452-3/00,3580-10/02,3599-2/03,3749-9/06.3803-6/08:3830-5/09) *The provisions of this Chapter shall become effective upon adoption,pursuant to Huntington Beach City Charter Section 500(e)(1). (3220-1/94) Sections: 2.07.010 Name 2.07.020 Purpose 2.07.030 Relation to Political Reform Act of 1974 2.07.040 Definitions 2.07.050 Campaign contribution limitations 2.07.060 (Repealed—Ordinance No. 3803-6/08) 2.07.070 Election cycle 2.07.080 Prohibition on multiple campaign committees 2.07.090 Prohibition on transfers 2.07.100 Loans to city candidates and elective city officers and their controlled committee 2.07.110 (Repealed—Ordinance No.3803-6/08) 2.07.120 (Repealed—Ordinance No. 3803-6/08) 2.07.130 Transmittal of campaign contributions in city office buildings 2.07.140 Disclosure of occupation and employer 2.07.150 Reporting of cumulative contributions 2.07.160 (Repealed—Ordinance No. 3803-6/08) 2.07.170 (Repealed—Ordinance No. 3803-6/08) 2.07.180 (Repealed—Ordinance No. 3803-6/08) 2.07.190 (Repealed—Ordinance No. 3803-6/08) 2.07.200 (Repealed—Ordinance No. 3803-6/08) 2.07.210 (Repealed—Ordinance No. 3803-6/08) 2.07.220 Applicability of other laws 2.07.230 Severability 2.07.240 Interpretation of chapter 2.07.250 (Repealed—Ordinance No. 3803-6/08) 2.07.260 Effective date 2.07.010 Name. This Chapter shall be known and may be cited as the "City of Huntington Beach Campaign Reform Law." (3220-1/94) 2.07.020 Purpose. The purpose of this Chapter is to ensure that the financial strength of certain individuals or organizations does not permit them to exercise a disproportionate or controlling influence on the election of City candidates. To achieve such purpose,this Chapter is designed to reduce the influence of large contributions, to ensure that multiple contributions in excess of the contribution limits do not originate from the same source of funds, to ensure that individuals and interest groups continue to have a fair and equal opportunity to participate in electing City candidates, and to maintain public trust in governmental institutions and the electoral process. (3220-1/94) 2.07.030 Relation to Political Reform Act of 1974. This Chapter is intended to supplement the Political Reform Act of 1974. Unless the term is specifically defined in this Chapter, or the contrary is stated or clearly appears from the context, words and phrases shall have the same meaning as when they are used in Title 9 of the California Government Code,in which the Political Reform Act of 1974 is codified, as the same may be, from time to time amended. (3220-1/94) Huntington Beach Municipal Code Chapter 2.07 Page 1 of 5 2.07.040 Definitions. (a) "City Candidate" means any person who is a candidate for the city Council, City Clerk, City Treasurer, or City Attorney of the City of Huntington Beach. (3220-1/94) (b) "Elective City Officer" means any person who is Mayor, a member of the City Council, City Clerk, City Treasurer, or City Attorney of the City of Huntington Beach, whether appointed or elected. (3220-1/94) (c) "Non-elected City Official" means any person who is a member of a City of Huntington Beach board, committee, or commission, and who is not elected to that position. (3220-1/94) (d) "Person" means an individual, proprietorship, firm,partnership,joint venture, syndicate, business trust, company, corporation, association, committee, and any other organization or group of persons acting in concert. (3220-1/94) 2.07.050 Campaign contribution limitations. No person shall make to any City candidate or the controlled committee of any such City candidate, and no such candidate or committee shall accept from any such person, a contribution or contributions totaling more than five hundred dollars($500) in a City Council, City Clerk, City Treasurer, or City Attorney election cycle. Thereafter said contribution limitations shall increase by the October consumer price index(CPI) of Los Angeles, Long Beach, and Anaheim areas, rounded to the nearest $10, effective at the beginning of each new election cycle. (3220-1/94,3452-3/00,3599-2/03,3803-6/08) 2.07.070 Election cycle. (3749-9/06) (a) City Council, City Clerk, City Treasurer, and City Attorney Elections. For purposes of the limits of this Chapter, as applied to elections for City Council, City Clerk, City Treasurer, and City Attorney, the final date for contributions shall be December 31 of the year in which the election for the open position was held. Contributions made after the final date shall be deemed contributions for the next election cycle. Notwithstanding the foregoing, contributions made after the final date to an elected Council Member who is ineligible for a further consecutive term, shall be deemed a contribution for the most recent election cycle in which such Council Member was eligible, and such contributions shall be subject to all other limitations and regulations in effect during said election cycle. (3220-1/94,3830-5/09) (b) Examples of the Election Cycle. January 1, 1987, to December 31, 1990, was the "Election Cycle" for the 1990 election. Pursuant to Section 2.07.070 Election Cycle, the four(4)year period for purposes of applying the interpretation of the Campaign Ordinance Election Cycle 2.07.070(a) shall be as follows: (3220-1/94) Example 1. (3220-1/94) 1992 Election Cycle-Three Council Seats and City Clerk and City Treasurer: January 1, 1989-December 31, 1992. (3220-1/94) (1) The "last election" was November 1988. (3220-1/94) (2) December 31, 1988, was the last or final date for receipt of campaign contributions for the 1988 election. (3220-1/94) (3) January 1, 1989,began the election cycle for the 1992 election. (3220-1/94) (4) December 31, 1992, ended the election cycle for the 1992 election. (3220-1/94) Huntington Beach Municipal Code Chapter 2.07 Page 2 of 5 Example 2. (3220-1/94) 1994 Election Cycle -Four(4) Council Seats and City Attorney January 1, 1991 -December 31, 1994. (3220-1/94) (1) The "last election" was November 1990. (3220-1/94) (2) December 31, 1990, was the last or final date for receipt of campaign contributions for the 1990 election. (3220-1/94) (3) January 1, 1991, began the election cycle for the 1994 election. (3220-1/94) (4) December 31, 1994, ends the election cycle for the 1994 election. (3220-1/94) Example 3. (3220-1/94) 1996 Election Cycle- Three(3) Council Seats and City Clerk and City Treasurer: January 1, 1993 - December 31, 1996. (3220-1/94) (1) The "last election" was November 1992. (3220-1/94) (2) December 31, 1992, was the last or final date for receipt of campaign contributions for the 1992 election. (3220-1/94) (3) January 1, 1993, began the election cycle for the 1996 election. (3220-1/94) (4) December 31, 1996, ends the election cycle for the 1996 election. (3220-1/94) (c) Recalls. For purposes of the limits of this Chapter, campaign contributions made at any time after a committee has been formed,pursuant to the provisions of the Political Reform Act, in support of a recall election or after the City Clerk has approved a recall petition for circulation and gathering of signatures,whichever occurs first, shall be considered contributions during a recall election cycle. A recall election cycle shall end whenever any of the following occur: (3220-1/94) (1) The recall proponents fail to return signed petitions to the City Clerk within the time limits set forth in the California Elections Code. (3220-1/94) (2) All committees formed in support of the recall have been terminated pursuant to the provisions of the Political Reform Act. (3220-1/94) (3) Ten(10) days after a recall election has been held. (3220-1/94) 2.07.080 Prohibition on multiple campaign committees. A City candidate or an elective City officer shall have no more than one campaign committee which shall have only one bank account out of which all qualified campaign and office holder expenses related to that City office shall be made. This section does not prevent a City candidate or an elective City officer from establishing another campaign committee solely for the purpose of running for a state, federal, local, or other City office. This section also does not prevent an elective City officer from establishing another campaign committee solely for the purpose of opposing his or her own recall. (3220-1/94) 2.07.090 Prohibition on transfers. . (a) No funds may be transferred into any city candidate or elective city officer's campaign committee from any other campaign committee controlled by a candidate(including said City candidate)or by an elective City officer(including said elective City officer.) (3220-1/94) Huntington Beach Municipal Code Chapter 2.07 Page 3 of 5 (b) No City candidate and no committee controlled by a City candidate or elective City officer shall make any contribution to any other City candidate running for office or to any committee supporting or opposing a City candidate for elective City office, nor to any committee supporting or opposing a recall of an elective City officer. This section shall not prohibit a City candidate from making a contribution from his or her own personal funds to his or her own candidacy or to the candidacy of any other candidate for elective City office. (3220-1/94) The provision of this section shall not apply to the candidate or elected officer who forms a new committee for purposes of reelection to the same office and, to close out the prior committee, transfers the money or debt from the prior committee to the new committee and, in so doing, complies with all regulations of the political Reform Act of 1974, and as amended. (3220-1/94) 2.07.100 Loans to City candidates and elective City officers and their controlled committee. (a) A loan shall be considered a contribution from the maker and the guarantor of the loan and shall be subject to the contribution limitations of this Chapter. (3220-1/94) (b) Every loan to a City candidate or elective City officer or their controlled committees shall be by written agreement which shall be filed with the candidate's or committee's Campaign Statement on which the loan is first reported. (3220-1/94) (c) The proceeds of a loan made to a City candidate or elective City officer by a commercial lending institution in the regular course of business on the same terms available to members of the public shall not be subject to the contribution limitations of this Chapter if the loan is made directly to the City Candidate or elective City officer or his or her controlled committee. The guarantors of such a loan shall remain subject to the contribution limits of this Chapter. (3220-1/94) (d) Extensions of credit(other than loans pursuant to Section 2.07.100(c) for a period of more than thirty(30) days are subject to the contribution limitations of this Chapter. (3220-1/94) (e) This section shall apply only to loans and extensions of credit used or intended for use for campaign purposes or which are otherwise connected with the holding of public office. (3220-1/94) (f) The monetary limitations or provisions of this section shall not apply to a candidate's loan of his or her personal funds to his or her own campaign committee. (3220-1/94) (g) No City candidate and no committee controlled by a City candidate or elective City officer shall make any contribution to any other City candidate running for office or to any committee supporting or opposing a City candidate for elective City office,nor to any committee supporting or opposing a recall of an elective City officer. This section shall not prohibit a City candidate from making a contribution from his or her own personal funds to his or her own candidacy or to the candidacy,of any other candidate for elective City office. (3220-1/94) 2.07.130 Transmittal of campaign contributions in city office buildings. (a) No person shall receive or personally deliver or attempt to deliver a contribution in any office which the City owns or for which the City pays the majority of the rent where the business of the City is conducted. (3220-1/94,3803-6/08) Huntington Beach Municipal Code Chapter 2.07 Page 4 of 5 (b) For purposes of this section: (3220-1/94) (1) "Personally deliver"means delivery of a contribution in person or causing a contribution to be delivered in person by an agent or intermediary, other than the United States mail. (3220-1194) (2) "Receive" includes the receipt of a campaign contribution delivered in person. (3220-1/94,3803-6/08) 2.07.140 Disclosure of occupation and employer. No campaign contribution shall be deposited into a campaign bank account of a.City candidate or elective City officer unless the disclosure information required by the Political Reform Act, including the name, address, occupation and employer of the contributor, or, if self employed,name of business, is on file in the records of the recipient of the contribution. This information is to be reported on each Campaign Statement required to be filed by the Political Reform Act. (322o-1/94) 2.07.150 I2eportin2 of cumulative contributions. A cumulative contribution for each contributor shall be based on an election cycle and shall be reported on each Campaign Statement required to be filed by the Political Reform Act. (3220-1/94) 2.07.220 Applicability of other laws. Nothing in this Chapter shall exempt any person from applicable provisions of any other laws of this state or jurisdiction. (3220-1/94) 2.07.230 Severability. If any provisions of this Chapter, or the application of any such provision to any person or circumstances, shall be held invalid,the remainder of this Chapter,to the extent it can be given effect, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby, and to this extent the provisions of this Chapter are severable. (3220-1/94) 2.07.240 Interpretation of ebapter. This Chapter should be liberally construed to accomplish its purposes. (3220-1/94) 2.07.260 Effective date. The provisions of this Chapter shall become effective upon adoption, pursuant to Huntington Beach City Charter Section 500(e)(1). (3220-1/94) Huntington Beach Municipal Code Chapter 2.07 Page 5 of 5 . CHIM - CITY OF UUNTINGTON BEACIJ INTERDEPARTMENTAL COMMUNICATION 1701, CHARTER REVIEW COMMISSION FROM: JENNIFER McGRATH, City Attomey DATE: December 24, 2009 SUBJECT: Campaign Reform On August 20, 2007,the City Council created a subcommittee to consider a campaign contribution increase and to review Huntington Be4ich Afunicipal Code Chapters 2,04, 2,06 and 2,07 relating to campaign regu lations. The subcommittee was chaired by Don Hansen, and the other members were Cathy Green and Jill Hardy. The committee reviewed a matrix 'of the campaign regulations of seven cities, the County, and the State of California. Ultimately-,the committee recommended the repeal of Chapter 2.06(mass mailings); no change to Chapter 2.04(Eligibility); and multiple revisions to Chapter 2.07 to avoid duplication of State law, clarify existing law, and increase the campaign contribution limitation. The City Council adopted the recommendations of the subcommittee at its meeting of June 16, 2008, Ultimately, the City Council decided to increase the contribution limit to$500.00 with a CPI adjustment each election cycle. JENNIFE R McGRATH City Attorney JM/ab jnV09 Wrno Campaign ARefomi T NT , October 31, 2009 To: City of Huntington Beach Charter Reform Commission From: Raphael Sonenshein, Consultant Subject: Campaign Finance Local governments often make regulations regarding campaign finance. These provisions may appear in the charter, in the municipal code, or in both. These regulations set boundaries for such activities as raising money, contributing funds, reporting contributions, avoiding conflict of interest and many other matters. Some larger cities have even more extensive rules. Los Angeles voters wrote into their charter a fully developed campaign finance system, an Ethics Commission to enforce it, and a system of partial public financing for local elections. This massive project emerged out of financial scandals at city hall in the late 1980s. Cities in the medium population range, like Huntington Beach, are likely to have campaign finance rules but generally will not have either an Ethics Commission or public financing. In most cities, the provisions for regulating campaign finance do not appear in the charter, as you can see from the list of cities compiled by Pat Dapkus. Glendale is unusual among medium sized cities, in that its system appears in the charter. Anaheim, Modesto, and Irvine have nothing in their charters, but rules appear in their municipal codes. The campaign finance rules may appear to be rather standard, but there are quite a few differences among cities. For example, some restrict the use of surplus (leftover) campaign funds, while others do not. Some address conflict of interest involving contributors, while others do not. All local campaign finance laws are subject to the Political Reform Act of 1974, the most important state law on this subject. Ordinances generally reference the Political Reform Act, and ensure compliance with its provisions. One area of great variety is the contribution limit for campaigns. Population size does not seem to have much to do with the size of the limit. For Anaheim, it is $1,500, but for Chula Vista only $300. Fremont picks $500, while Glendale uses $1,000. Los Angeles, the largest city in the state, limits contributions in council races to $500 per person. A number of cities include provisions to make adjustments in the contribution limit, often based on the cost of living index. Huntington Beach and Campaign Finance The Huntington Beach charter is silent in the area of campaign finance. The municipal code, however, has an extensive section on the subject. The limit for contributions is $500, an amount that had been increased from $300 based on changes in campaign costs and cost of living. The Huntington Beach code includes provisions regarding transfers between campaign accounts, loans, and forbids the delivery or acceptance of campaign contributions within city buildings. Possible Recommendations by the Commission The Commission may consider some changes to the charter regarding campaign finance. One possibility is to place broad language into the charter that sets forth the goals of the campaign finance system. Chula Vista has a small section that directs the council to "adopt reasonable regulations related to campaign contributions which shall be contained in the City Code." Other cities express broader values, such as the importance of maintaining public access and fairness in elections. While this may seem to be an insignificant action, the Charter is more than just a legal guide. It is also an educational document. When ordinances are the only vehicles to inform the public of important values and rules, there may be a gap in public understanding. You may consider placing the contribution limit and the methods of adjusting the limit into the charter. This dollar amount is probably the most visible element of campaign finance. If you take this path, you will enhance the ability of the voters to control the finance system, but you also restrict the flexibility of ordinance to make appropriate adjustments. Huntington Beach is right in the normal range with the dollar amount now, and there has been no indication that this is.about to radically change. Charters and ordinances in other cities have provisions that do not appear in the Huntington Beach municipal code. You may wish to consider specific prohibitions against conflict of interest based on campaign contributions, or new provisions limiting the use of surplus campaign funds. However, these changes will add detail to a charter that currently has nothing at all about campaign finance. Whatever goes in the charter is assumed to have a higher priority than what is in ordinance, and therefore your decision would weigh the relative value of each of these provisions. 9 � � 5; h g ` _r ,.; � _: �:. �s � p , ��� � � �,r CAMPAIGN FINANCE SUMMARY HIGHLIGHTS Anaheim Charter Nothing in Charter • Limits Contributions to $1500 adjusted biennially by the CCPI. • Slate mailers sent out by a third are not subject to this limitation under certain conditions. Chula Vista Charter Charter calls for limitations to be set in the City Code. • Limits contributions to $300 per person to a candidate. Limitation applies to organizations established solely to support a specific candidate. • Contributions cannot be made in the name of another person. • Funds can only be accepted 11 mos. prior to the election. • Candidate is limited to $5,000 of their personal funds. CITY CHARTER/ CHARTER MUNICIPAL/CITY CODE GENERAL LAW Fontana General Law Follow state limitation. Fremont General Law • Limits contributions to $500 increased biennially by CPI • Limit applies to committees which exclusively suppor or oppose a candidate. • Limitation does not apply to candidates personal funds. • Limits aggregate contributions. • Limits loans to a candidate. • Regulates debt retirement committee contributions. Glendale Charter • Limits contribution to $1,000 per person multiplied by Not in Municipal Code the number of council seats on the ballot. Adjusted even years by CPI. • Treats contributions from husband &wife as separate. • Contributions by minor children count against the parent. • Contributions to candidate and committees for the candidate aggregated must not exceed limit. • Loans considered as contributions • Loans by the candidate or their spouse to the campaign cannot exceed $5,000. • No persons who contracts with the city for an amount greater than $25,000 can make a contribution to a city elected official Huntington Charter Not in Charter • Contributions to candidate or controlled committee Beach limited to $500 adjusted each October by CPI. • Limits candidates to one campaign committee. • Prohibits transferring funds from one candidates campaign to that of another candidate. • Loans to a campaign are treated as contributions. • Campaign contributions prohibited in city office buildings. Irvine Charter Not in Charter • Campaign contributions limited to $300 adjusted each Mayor election local CPI. • Treats independent expenditures on behalf of a candidate as a contribution with the above limit. • Personal funds contributed by a candidate to their own campaign are exem t. Los Angeles Charter • Contributions to Council candidate or their controlled • committee are limited to $500 per person. • Contributions to candidates for Mayor, City Attorney or Controller or their controlled committee are limited to $1,000 per person for a single election or$500 per calendar year. • Requires signing a code of ethics • The personal funds of a candidate are exempt. • Limits the aggregate amount donated by any person. • Funds cannot be transferred from one candidate to another. • Loans are treated as contributions. • Personal funds in excess of$30,000 have to be deposited in the candidate's campaign 30 days before the election. • Independent organizations must file a disclaimer. Modesto Charter • Conflict of Interest & Disclosure requirements • Limits on Contributions section was repealed Moreno Valley • Not found Oceanview • Repealed except for contributions by lobbyists, Orange General Law • Contributions to candidate for all elected offices or their controlled committee are limited to $1,000 per person. • Limitation applies to committees formed in suppor or opposition to the recal of an elected City Officer. • Exempts personal funds contributed by a candidate to their own campaign or those from a spouse. ® A majority of the officers of a committee in support or opposition of a candidate cannot serve on any other committee in support or opposition to that candidate. • Contributions by minor children are aggregated with those of their parent. ® A re ates non-monetary contributions San Bernardino Charter San Bernardino does not have expenditure limits at the present time, Information below is taken from their `suspended code." ® Voluntary limit of$1.00 per each resident in the District or Ward or • $1.00 for each resident in the city of city-wide offices. ® Candidates must file a statement accepting or rejecting the voluntary ceiling. ® If they reject the ceiling they are subject to the limitations set forth in the Government Code • IF an independent expenditure committee or committees in aggregate in support or opposition to a candidate for office spends more than 50% of the voluntary expenditure ceiling, the voluntary expenditure ceiling shall be three times the limit specified for any candidate running for the same office. Santa Ana Charter • Mayor & Council required to disqualify themselves • Prohibits use of the city emblem or a facsimile for from decision if the decision relates to a recent purposes of supporting or opposing a nominee for campaign contributor. election to a city or public office. o No contribution or loan can exceed $1,000 per person, per election cycle. ® Limits candidates to one campaign committee and one campaign account. ® Allows adjustment by ordinance Westminster General Law . Not found in Municipal Code • >.. . .:>: �.� . . ..��:��: z. . ..>�y> . ..�y.:�y :�����. .:.:�«< v���x� . ». \: A' �« � w<© �® �: § ° ��\ �? . < . . . \_� � �\ � a \ �� \ v2 � �: <�. :6 a : , . . ��� �k \ } �` \ : �\�® �. , ��� _a v 3 { / 1 �. �� �,��.�\ � � .\ �. �� - �\��� ���\ ����\�� REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 11/03/2009 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner SUBJECT: Add new charter section to require electronic filing & Internet publication of Statements of Economic Interests and campaign finance disclosures from elected city officials Statement of Issue: Require key disclosure documents to be filed electronically to improve legibility, usability, and timeliness. Require Internet publication of these documents for easy public access. Recommended Action: Motion to: Add new Huntington Beach charter section as follows: Statements of Economic Interests and campaign finance disclosures for elected city officials, candidates, and committees shall be filed electronically with the City Clerk and published via the Internet. Analysis: Statements of Economic Interest are currently filed in paper form with the City Clerk and are not published via the Internet. The City Clerk's department will promptly e-mail scanned copies to members of the public who know to ask for such things. Campaign finance disclosures may currently be filed with the City Clerk in either paper form or electronic form. The City Clerk's department manually scans paper filings into the electronic filing system (Netfile). This manual scanning process is labor-intensive and many filings for the final weeks of the 2008 election were not entered into the electronic filing system until long after the election was over. Once disclosures are entered into the electronic filing system, they become publicly available via the Internet. The City Clerk's departnent will also promptly e-mail scanned copies to members of the public who know to ask for such things. - 1 - 10/28/2009 1:24 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(s): 11/03/2009 As part of 2009/2010 budget cuts, funding for the campaign finance disclosure electronic filing system was eliminated. But the system vendor is currently allowing the city to continue to use the system for free. y recommended action above requires the use of electronic filing for both sets of documents. There are still candidates for elected office who file their disclosures in handwritten paper form, with varying degrees of illegibility. Other candidates file typewritten paper forms. But these paper filings, regardless of being handwritten or typewritten, cannot easily be converted into machine-readable formats suitable for bulk analysis. Thus the exhaustive campaign finance analysis that I perform for every election requires me to undertake the herculean, time- consuming and physically exhausting effort of manually typing the data from dozens of pages of paper filings into machine-readable form. Requiring electronic filing of this informationeliminates the most awful part (manual data entry) of the analysis process by members of the public and press. It also reduces the workload of the City Clerk and improves timely access to the information by the public. Candidates also benefit from automated error checking of the electronic data at the time of entry into the filing system, thus reducing the need to submit subsequent error-correction amendments. In short, everybody wins. But filing the information electronically is just half of what needs to be done. The information also needs to be published via the Internet for easy access by members of the public so the public can gain critical insights into their elected officials. There is no better way to distribute information city-wide than the Internet. Publishing these documents via the Internet will also save City CIerk staff time from having to respond to information request queries from the public. There was some reluctance on the part of the charter commission about using the word "Internet" in some of my previous proposals. Based on my 33 years of professional information technology work experience, plus my being on the Internet for nearly 20 years, I feel that such reluctance is unwarranted. The Internet has achieved virtually-metastatic critical mass and is here to stay. The underlying technologies will continue to evolve over time, but the entire global network as a whole will still be called the "Internet' for decades to come. -2- 10/28/2009 1:24 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 11/03/2009 Other city charters are not shy about using "Internet" and other technological words, particularly cities located in the greater Silicon Valley region. The following city charters all mention "electronic", "Internet", "online", and "web" in an information publishing context: • Folsom • Los Angeles • Merced • Oakland • Pasadena • Pomona • Redondo Beach • San Francisco • San Mateo • Santa Cruz • Sunnyvale Good transparency should be considered on a par with holding elections in terms of priority and funding, i.e. mandatory, not discretionary. Only by incorporating strong transparency requirements into the charter can the public be assured that the transparency required for healthy democracy will be a priority for the city. -3 - ]0/28/2009 l:24 PM REQUEST FOR CHARTER REVIEW CO1VIMISSION ACTION MEETING DATE(S): 11/03/2009 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner SUBJECT: Add new charter section to provide safe harbor for prompt refund of improper campaign contributions Statement of Issue: Current Huntington Beach Municipal Code (HBMC) 2.07 campaign reform ordinances do not provide any means of"curing" inadvertent violations. This proposed charter amendment creates a "safe harbor" time period whereby improper contributions may be refunded promptly without penalty. Recommended Action: Motion to: Add new Huntington Beach charter section as follows: Any candidate who receives either personally or through an agent a contribution in violation of this charter or any applicable ordinance(s) shall have ten (10) days from the date of receipt of the contribution violating this charter or said ordinance(s) to return the entire contribution to the donor or donors thereof to avoid prosecution hereunder. Analysis: During the 2007 revision of HBMC section 2.07 on campaign finance reform, it was pointed out that there is no provision in these ordinances for"curing" a violation. The lack of such a provision acts as a disincentive for candidates to self- report inadvertent violations. The recommended action above creates a "safe harbor" provision whereby candidates may cure violations without penalty if the improper contributions are refunded within 10 days of receipt. This creates a positive incentive for candidates to scrutinize their contributions and promptly do the right thing if any problems are fourA - 1 - 10/28/2009 1:27 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 11/03/2009 This proposed amendment is derived from Merced charter section 1056(C) and has been modified to include ordinance violations in addition to charter violations. References: ® Merced charter section 1056(C) - http:/ libral-,V2.nitiiiicode.com/default- testi'I�oc 'ie� -r`16096;' ill /14 -2- 10/28/2009 1:27 PM REQUEST FOR CHARTER REVIEW C®MMISSION ACTION MEETING DATE(S): 11/03/2009 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner SUBJECT: Add new charter section to regulate surplus campaign funds Statement of Issue: Prevents elected office holders from carrying forward surplus campaign funds that could be used to gain an unfair advantage when running for re-election. Recommended Action: Motion to: Add new Huntington Beach charter section as follows: All funds that exceed election campaign expenses for public office, or the repayment of campaign loans, known as "surplus campaign funds" or "surplus funds," shall be turned over to the City's General Fund within ninety (90) days after withdrawal, defeat, or election to office. Analysis: Presently there is nothing to prevent a candidate for elected office from raising funds far in excess of campaign expenses in order to create a large "war chest" of surplus funds that could be used to gain unfair advantage when running for re- election. Instead I think it would be preferable for the money in re-election contests to be based on the candidate's track record in office rather than on prior- term fundraising prowess. My recommended action above does not place any limits on how much money a candidate can raise or spend. But you must spend everything you raise or else any surplus will be turned over to the city's general fund, which ensures that all candidates for the next election cycle will start fundraising from the same zero base. 1 - 10/28/2009 1:28 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 11/03/2009 This proposed amendment is derived nearly word-for-word from Pomona charter section 1402. References: a Pomona charter section 1402 - htt :.:.li rarv'1municodexom default- now ocVieNN-'./1 j'712r`1 `,,1.7 -2- 10/28/2009 1:28 PM ATTACHMENT1 0 QUEST FOR CHARIER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/20I0 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner �fj SUBJECT: Add new charter section to require the city council to determine at least once every 10 years whether charter review is warranted. Statement of Issue: Over time, current city practice has diverged from strict charter compliance as needs have changed in the decades between major charter revisions. This proposal will require the city council to determine at least once every 10 years whether charter review is warranted. Recommended Action: Motion to: Amend Huntington Beach charter to add new section requiring the city council to hold a public hearing and city council vote at least once every 10 years to determine whether charter review is warranted If a majority of the council votes that review is warranted, such review will proceed in a manner of the council's choosing. Analysis: City practice has slowly diverged from strict charter compliance in a number of areas in the decades since the last comprehensive charter revision. Given that the likelihood of divergence increases as the time between comprehensive charter revisions increases, I propose amending the current charter to require the city council to periodically determine whether comprehensive charter review is warranted. Such review on a regular basis will help to keep city practice more in sync with the charter. At least once every 10 years the city council shall hold a public hearing and council vote to determine whether charter review is warranted. If the council votes that review is warranted, the review will proceed in the manner of the council's choosing. This could be via council subcommittee, full council discussion, appointed charter revision commission, elected charter revision commission, etc. -] - 12/22/2009 7:09 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/2010 The review process may or may not result in any ballot measures being submitted to the voters. Such regular, periodic review should help to prevent the charter from becoming stale, as well as to provide opportunities for "scanning the horizon" to make proactive charter amendments to enable the city to cope better with looming future issues. -2- 12/22/2009 7:09 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/2010 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner SUBJECT: Prohibit the use of eminent domain to transfer propriety from one private owner to another private owner for commercial profit-making purposes. Statement of Issue: In the past the city has used eminent domain in redevelopment projects to transfer property from one private owner to another for the purposes of furthering community-wide economic growth. In Kelo v. City of New London, 125 S. Ct 2655 (2005), the US Supreme Court by a split vote of 5-4 upheld such use of eminent domain. Public backlash was swift, and many states and municipalities reacted by passing laws prohibiting Kelo-style eminent domain. I propose a similar prohibition for Huntington Beach. Recommended Action: Motion to: Amend Huntington Beach charter to add new section prohibiting the use of eminent domain for the purpose of acquiring property from a private owner for transfer to another private owner for for-profit purposes. Analysis: A brief chronology of Kelo and its aftermath follows below. Kelo v. City of New London, June 23, 2005 Quoting from Wikipedia (http:/./'en.wikipedia.org/wiki%`Kelo v. City of New London): "Kelo v. City of New London, 545 U.S. 469 (2005) was a case decided by the Supreme Court of the United States involving the use of eminent domain to transfer land from one private owner to another to further economic development. The case arose from the condemnation by New London, Connecticut, of privately owned real property so that it could be used as part of a comprehensive - 1 - 12/22/2009 7:19 PM REQUEST FOR CHARTER REVIEW CO1VIMISSION ACTION MEETING DA'ITE(S): 01/05/20I0 redevelopment plan. The Court held in a 5-4 decision that the general benefits a community enjoyed from economic growth qualified such redevelopment plans as a permissible "public use" under the Takings Clause of the Fifth Amendment. The case was appealed from a decision by the Supreme Court of Connecticut in favor of the City of New London. The state supreme court held that the use of eminent domain for economic development did not violate the public use clauses of the state and federal constitutions. The court held that if an economic project creates new jobs, increases tax and other city revenues, and revitalizes a depressed urban area (even if not blighted), then the project qualifies as a public use. The court also ruled constitutional the government delegation of its eminent domain power to a private entity. The decision was widely criticized. Many of the public viewed the outcome as a gross violation of property rights and as a misinterpretation of the Fifth Amendment, the consequence of which would be to benefit large corporations at the expense of individual homeowners and local communities. In November 2009, Pfizer, the beneficiary of the eminent domain action, announced that it would leave New London." City Councii Meeting, October 3, 2005 In California, efforts to prohibit Kelo-style eminent domain began immediately in the Sacramento legislature in the wake of Kelo. This issue came before the city council on October 3, 2005, in the form of an Intergovernmental Relations Committee item asking the council to oppose SCA 15 (MeClintock/Florez) and ACA 22 (La Malfa), which were nearly identical senate and assembly constitutional amendments to restrict local governments' use of eminent domain. -2- 12/22/2009 7:19 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/2010 Instead of opposing SCA 15 and ACA 22 as recommended, the council ended up supporting both measures to prevent further Kelo abuses. Quoting from the minutes of the October 3, 2005 city council meeting: "Councilmember Hansen stated his reasons for supporting SCA 15 (McClintock & Florez) and ACA 22 (La Malfa) including abuses by government of private citizens and their property. Councilmember Bohr stated his reasons for opposing SCA 15 and ACA 22, including what he stated is a lack of eminent domain abuse in Huntington Beach. Councilmember Cook stated her support for SCA 15 and ACA 22, citing what she perceives as instances of eminent domain abuse in the city. Councilmember Coerper and Mayor Pro Tem Sullivan stated their support for SCA 15 and ACA 22, citing other examples of perceived eminent domain abuses. Councilmember Bohr spoke regarding fair market value paid to property owners. Mayor Hardy stated her reasons for opposing SCA 15 and ACA 22, including her opinion that the legislation is too restrictive. A motion was made by Hansen, second Green to SUPPORT SCA 15 (McClintock & Florez) as amended on 8/23/05 and ACA 22 (La Malfa) as introduced—Restricting local governments' use of eminent domain. The motion carried by the following roll call vote: AYES: Hansen, Coerper, Sullivan, Green, Cook NOES: Hardy, Bohr ABSENT: None" -3 - 12/22/2009 7:19 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/2010 Redevelopment of Under-performing Shopping Centers, June 2007 In January 2007, council member Hansen brought forth an H item directing staff to prepare an inventory of under-performing shopping centers for possible inclusion into an expanded Merged Redevelopment Area. This was approved by a vote of 7-0. At a June 2007 study session on the subject, staff was directed by council to proceed without considering the use of eminent domain. Proposition 99, June 3, 2008 On June 3, 2008, California voters passed Proposition 99 (http /'ballotpedia or faviki/index php/California Proposition 99(2008)) with 62% of the vote to prohibit the use of eminent domain for acquiring an owner- occupied residence for the purpose of conveying it to a private person. This effectively prohibited Kelo-style eminent domain, but only for owner-occupied residences. Critics of this proposition rightfully complained that renters and business owners would still be unprotected from Kelo-style eminent domain. Redevelopment of Under-performing Shopping Centers, March 2009 A preliminary survey of"blighted" shopping centers was presented at the March 2, 2009 city council study session. There was again discussion of eminent domain, but according to the minutes, "Councilmembers provided support to proceed, with the option to discuss inclusion of eminent domain authority later in the process". So it appears the council has backed off slightly on their commitment to avoid using eminent domain for this plan. -4- 12/22/2009 7:19 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/2010 Eminent Domain and Other Charter Cities Several charter cities contain charter provisions to prohibit Kelo-style eminent domain; see References below for a partial list. Note that most of these restrictions were implemented in the year after the Kelo decision. The Anaheim measure passed with 80.3% of the vote, and the Newport Beach measure passed with 76.4% of the vote. It is clear that restricting this type of eminent domain is wildly popular with the voters. The Anaheim and Newport measures share much common language. However, an OC Register news article (http://xN�vw.ocregister.colm'news/"law-43862-measure- newport.html) points out several flaws in the Newport measure, and concludes that the Anaheim measure is the stronger of the two. Huntington Beach Charter Proposal I propose that the Huntington Beach charter be amended with an Anaheim-style restriction on eminent domain, but without the mitigation exception clause. I feel there is sufficient wiggle-room in that clause to allow for gaming the system, and so an amendment without such a clause will offer stronger protections against abuse. References: Anaheim - November 7, 2006 city council measure From http:,.,,",.,,-"xN.,ww.anaheim.net/docs agend/charter.pdf: Section 402. LIMITATIONS ON USE OF EMINENT DOMAIN. Neither the City of Anaheim nor any City-affiliated agency may exercise the power of eminent domain to acquire any property from any private owner thereof, without such owner's consent, when the purpose of the acquisition is the intended conveyance of the property so acquired to any other private party, for the conduct of any for-profit commercial activity or for-profit residential development, sales or -5 - 12/22/2009 7:19 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/2010 leasing. Nothing contained in this section shall be deemed to prohibit acquisitions of property interests by eminent domain for the purpose of either (i) conveying such acquired interests to the owner of other property affected by a public acquisition of property in order to mitigate impacts of the acquisition or the project to be constructed on such other property, or (ii) the development of any facilities to be operated by the City or any facilities of which the City is or shall be an owner. As used in this section, the following terms shall have the following ascribed meanings: "Owner" means the owner of the fee title interest in the property to be acquired, as shown on the last equalized assessment roll, or other more current proof of vesting the City may have. "Property" shall mean any interest in real or personal property otherwise subject to acquisition through the use of eminent domain. "City-affiliated agency" shall mean the Anaheim Redevelopment Agency, Anaheim Housing Authority, and any other entity possessing the power of eminent domain the governing board of which is solely composed of, or is solely appointed by, the members of the City Council of the City of Anaheim. (Added November 7, 2006, filed by the Secretary of State February 13, 2007.) Chuia Vista — June 6, 2006 citizen initiative From httr.):i`',."�ww.cliulavistaca.2ov/Cite Services/Administrative Services/City Clerki"P DFs:CVCharter.pdf: Sec. 305.5 Limitations on Powers of Eminent Domain Eminent domain is not to be used to further private economic development. The City of Chula Vista shall not initiate or participate in any proceedings, or take any action to condemn private property for the purpose of making such property available for private development, nor shall the City participate, directly or indirectly, in such takings. "Participation" means contributing, lending, providing, pledging, or foregoing, any funds, property, credit, in-kind services, or incurring -6- 12/22/2009 7:19 PM REQUEST, FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/2010 any debt or lease obligation, or providing any other thing of value to any agency, organization, or project. Notwithstanding these prohibitions, the City of Chula Vista may participate in proceedings to condemn private property for the purpose of making such property available for private development if such participation is approved by a majority of the voters in the City. Sec. 305.6 Minimum Public Use Period Property acquired by the City of Chula Vista through the use of eminent domain after the effective date of this charter amendment must be held or used for a public use by the City for a minimum ten year period prior to sale, lease, transfer or other disposition by the City. Monterey— predates Kelo? From htp`A\vww.codepubIishin.g.com,='ca:11 ontereN,,'html%"MonterevCH.html-rt2.7: Sec. 2.7 Voter Approval Required for Eminent Domain Actions to Acquire Property for Re-Sale in Redevelopment Projects. In any Redevelopment Project adopted or substantially amended after May 1, 1983, neither the City nor Redevelopment Agency shall by eminent domain proceedings acquire property within a Redevelopment Project for the purpose of re-sale for private redevelopment without first submitting to and receiving the approval of the electorate. This section shall not prohibit either the City or Redevelopment Agency from acquiring property by eminent domain proceedings for any other public purpose nor shall it prohibit either the City or Agency from acquiring property within a Redevelopment Project from a willing seller for any purpose. The proposal to acquire property within a Redevelopment Project for re-sale to private redevelopers shall be placed before the electorate at either a general election or special election called for that purpose. -7- 12/22/2009 7:19 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/2010 Newport Beach — November 7, 2006 city council measure From htt /�.ww.code ublisliili .com/C A/New portBeach/ht1iil "�,eta )o1-tBeachCfi.html" 04.424: Section 424. Limitations on Use of Eminent Domain. The City of Newport Beach and/or any City-Affiliated Agency shall not exercise the power of eminent domain to acquire any property from the owner of the property, without the owner's consent, for the sole purpose of transferring the property to another person to further private economic development. As used in this section of the Charter, the following terms shall have the following ascribed meanings: "Owner" means the owner of the fee title interest in the property to be acquired, as shown on the last equalized assessment roll, or other more current proof of vesting the City may have. "Property" shall mean any interest in real or personal property otherwise subject to acquisition through the use of eminent domain. "City-Affiliated Agency" shall mean the City of Newport Beach and/or any other entity possessing the power of eminent domain, the governing board of which is solely composed of, or is solely appointed by, the members of the City Council of the City of Newport Beach. (Added by amendment effective January 12, 2007) -8- 12/22/2009 7:19 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/15/2010 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner SUBJECT: Implement Monterey-style Neighborhood Improvement Program (NIP) to allow residential neighborhoods to share the benefits of tourist-oriented development Statement of Issue: Monterey and Huntington Beach both share a common history of being transformed from sleepy coastal towns into major tourist destinations in relatively short periods of time. In addition to bringing in money, tourism also brings negative impacts which reduce residential quality of life. Monterey's solution to restoring balance between tourism and the residential neighborhoods was to implement a Neighborhood Improvement Program that dedicates a portion of the Transient Occupancy Tax (TOT) to funding neighborhood capital improvements selected by residents appointed to a Neighborhood Improvement Program Committee. I propose a similar solution for Huntington Beach. Recommended Action: Motion to: Amend Huntington Beach charter to create a new section as follows: a) Purpose: The purpose of the Neighborhood and Community Improvement Program is to insure that a minimum portion of the City's annual budget is expended to improve the residential neighborhoods of the City and to provide for capital projects of community-wide benefit. b) Capital Projects Defined: Capital Projects include, but are not limited to, streets, storm drains, sewers, sidewalks, lighting, traffic control devices, landscaping and beautification, parks, recreational facilities and other public buildings. Capital Projects do not include ordinary services. c) Annual Budget: As part of the annual budget, the City Council shall appropriate at least ten percent (10%) of the Transient Occupancy Tax estimated to be collected during the fiscal year to be expended on - 1 - 12/22/2009 7:25 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/15/2010 Neighborhood and Community Improvements. If the Council determines that there are insufficient funds available to provide for the ordinary and necessary services in any budget year, they may, by an affirmative vote of five (5) members of the City Council, reduce the amount to be appropriated for Neighborhood and Community Improvements. d) Neighborhood Improvement Program Committee: The City Council shall appoint at least one (1) resident from each residential neighborhood to the Neighborhood Improvement Program Committee. The Committee shall recommend a list of capital improvements desired to be accomplished in each neighborhood. Recommendations may include multi-year projects and funding. e) Council Action: From the recommendations of the Neighborhood Improvement Program Committee the Council shall include a Neighborhood Improvement Program in the annual budget. The determination of the projects, priorities and expenditures shall be within the sound discretion of the City Council. Analysis: Please read pages 4 and 5 of the attached Monterey NIP manual (Section 11 A, Program History) to understand the origins of the program. The program was launched in 1985 and after several years of implementation it was enshrined as a charter amendment in 1988.. I propose the same program for Huntington Beach. My recommended action above copies Monterey charter section 6.6 verbatim with the addition of the following modifications: ® Percentage of the TOT is set at 10%to symbolically match the 10% of TOT currently used to fund the HB Marketing and Visitors Bureau. ® In Monterey, it takes a supermajority vote of a least 4 out of their 5 council members to reduce the TOT appropriation. Given that Huntington Beach has 7 council members, I have modified the supermajority vote requirement to be at least 5 council members. -2- 12/22/2009 7:25 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/15/2010 The adopted 2009/2010 HB budget estimates TOT for the current fiscal year at $5.4 million dollars. Thus if an HB NIP were implemented today, the appropriation would be a little over half a million dollars. Presumably the TOT that currently enters the city general fund does fund residential neighborhood improvements, but due to the general nature of the general fund, it is impossible to point this signal or that park and say "that project was built thanks to tourist dollars". A TOT-funded NIP would create direct visibility for the residents of the benefits that tourists can provide. The recent and ongoing bitter debate about the new Downtown Specific Plan has exposed deep fault lines between the tourist-dependent sectors of our local economy and the residents who have to put up with the negative impacts of the tourists. An HB NIP could go a long way towards ameliorating this division by giving the residents some direct say in how tourist dollars will be spent. Note that this proposal does not raise taxes, and that the city council can reduce NIP appropriations during tough economic times. The city council also retains final discretion on the projects to be funded. I realize that this is a non-trivial proposal. But I consider it to be a valuable, innovative idea, and I urge the commission to give it thoughtful consideration. References: • Monterey Neighborhood Improvement Program web page - littp:/..,,"www.inonterey.org/planningen-,ineering/niL) • Monterey charter section 6.6 - http:;��i`ww,,.codepublish.ing.com ca Monterey%html:.,'Montere�,,,C'I- .html}6.6 Attachment(s)• Monterey Neighborhood Improvement Program web page Monterey Neighborhood Improvement Program manual -3 - 12/22/2009 7:25 PM City of Monterey i PEEC i NIP Program Main Page NIP Neighborhood Improvement Program Engineering Office of PEEL 0 Pacific St , Room 7 What is t Monterey, CA 93940 Established in 1985, the Neighborhood Improvement Program '83,1.646.3921`: (NIP)directs tourist-generated dollars directly back into the City's mail residential neighborhoods. Under a Charter Amendment, at least 16 percent of the money collected through hotel taxes(Transient • . Occupancy Tax) must be spent on neighborhood and community SIP Prects Approved FY.:. 00910 , improvements. Each fiscal year, a committee consisting of residents considers all submitted projects and recommends which projects should be funded. Several community wide meetings are held and finally voted on by the NIP committee. NIP Committee Members The program begins each year in the fall with the mailing of the Meetings & Scheduie.. Qity_F6gus newsletter to all residents of Monterey. In the Agendas&''Minutes newsletter, there is an NIP Nomination Form for residents to Video archives from past meeting, propose neighborhood or citywide improvements. These forms are mailed back to the Construction Management office who Pre Nt�rr�Inat�on Eorm= - collects and sorts all the proposed projects. All projects are cost PIF to complete& submit onire estimated and totaled. PDF to print and send in *6c ddres Manual 'r'o°acts What is a Project? A NIP project is any public improvement(not on private property)that improves streets, storm drains, sewers, sidewalks, walkways, lighting, traffic control devices, landscaping and beautification, parks, recreational facilities and other public building improvements. The picture on this page PI I, i9 ti shows a-retaining wall added to a corner in the Fisherman's Flats neighborhood: What happens to projects that are submitted? qp All nomination cards are sorted by type of improvement and neighborhood. Valid project submissions are cost estimated and voted on by the NIP Committee, composed of residents.In fiscal year 2008-09;38 NlP projects were approved. So-look around, see what needs improving and submit a project during the project cycle, see the project submittal form below. Voting on proposed projects usually occurs in April. NIP Committee recommendations are then forwarded to the City Council for approval. Community members are encouraged to propose projects each winter. The deadline to enter submissions is usually the second Friday each February.Click here fora I Project NominationForm. http://www.monterey.org/planningengineering/nip/(1 of 2)(12/19/2009 7:57:15 PM] City of Monterey I PEEC I NIP Program Main Page o coordinates the program? The Planning, Engineering & Environmental Compliance Division (PEEC)defines the scope of NIP construction projects, giving feedback on unusual projects and designing projects once they are approved by the City Council, where they then go to the Capital Projects Division for implementation. For more information contact the Engineering Office of PEEC at 831.646.3921, or reexes'i:ci.moritere f,ca.us. NIP Main Page 1 NIP Form I NIP Projects j CHIP Meefinq Schedule PlannbgAinqilieerin Division e ital;Pr 'e t Oivi ion IBoards Cofrmissio s http://www.monterey.org/planningengineering/nip/(2 of 2)[12/19/2009 7:57:15 PM) NEIGHBORHOOD IMPROVEMENT PROGRAM . - <. �. + . POLICIES AND PROCEDURES MANUAL NEIGHBORHOOD IMPROVEMENT PROGRAM POLICIES AND PROCEDURES MANUAL COUNCIL APPROVED EDITION, February 2009 CITY OF MONTEREY 1 TABLE OF CONTENTS Page I. PURPOSE OF THIS MANUAL..............................................................................4 Il. BACKGROUND AND INTENT OF THE PROGRAM ............................................4 A. Program History........................................................................................... 4-5 B. Charter Amendment .................................................................................... 6-8 C. What is a Neighborhood/Community-wide Improvement? ..............................9 D. Neighborhood Improvement Program Committee Formation..........................9 III. PROGRAM FUNDING ..........................................................................................9 A. Transient Occupancy Tax (TOT)............................................................... 9-10 B. Neighborhood Base Allocation ......................................................................10 C. Base Allocation Carryover.............................................................................10 D. Per Capita Formula .......................................................................................10 E. Contingency Fund.................................................................................... 10-11 F. Preliminary Project Development Fund..........................................................11 G. Projects Charged to the Fund.............................................................11 IV. NEIGHBORHOOD IMPROVEMENT PROGRAM COMMITTEE.........................12 A. What is a Neighborhood?..............................................................................12 Map: City of Monterey Neighborhoods.....................................................13 B. Association Registration ................................................................................14 C. Role of the Neighborhood Improvement Program Committee.......................14 D. Role of the NIP Coordinator, Spokesperson and Alternates .........................14 E. Rules of Proceeding/Changes...................................................... 14-15 F. Special Meetings/Agenda Items ....................................................................15 2 V. THE NEIGHBORHOOD IMPROVEMENT PROCESS........................................15 A. Orientation Meeting .......................................................................................15 B. Project Nomination.......................................................................15-18 C. Preliminary Project Screening Meeting.................................................... 18-19 D. Cost/Information Formulation by Staff...........................................................19 E. NIP Committee Meeting to Review Project Nominations...............................19 F. Van Tour and Committee Discussion Meeting...............................................19 G. Public Discussion Meeting.............................................................................19 H. NIP Committee Meeting to Rank Projects and Prepare Recommendations for City Council .................................................... 20-21 I. Recommendations from the NIP Committee Prioritization Meeting.......................................................................... 21-22 J. Project Implementation/Construction ....................................................... 22-23 K. Schedule of Time Lines with City Budget Process ........................................23 NIP GENERAL ANNUAL SCHEDULE - TENTATIVE................................... 23-25 L. Deappropriation of Approved Projects ..................................................... 25-26 VI. PROPERTY ACQUISITION PROCEDURES......................................................26 A. General..........................................................................................................26 B. Methods.................................................................................................... 26-27 C. Time Model.............................................................................................. 28-29 D. Additional Comment.......................................................................................29 VII. FINAL COMMENT ON THE NEIGHBORHOOD IMPROVEMENT PROGRAM...............................................................................................29 APPENDIX I. Ballot Arguments For and Against Establishing NIP.................. 30-31 3 to PURPOSE OF THIS MANUAL The purpose of this manual is to provide the background, policies and procedures of Monterey's innovative Neighborhood Improvement Program. Publication of this document will provide the members of the Neighborhood Improvement Program Committee ("NIP Committee"), as well as all citizens interested in the Neighborhood Improvement Program, with a set of guidelines in order to understand the functions and rules under which the Neighborhood Improvement Program is planned and implemented throughout each fiscal year. Like any policy and procedures manual, it is a "living document." This means that the document can be revised, altered, or amended at any time upon recommendation of the NIP Committee. All such alterations/amendments will be by affirmative minute action of the Monterey City Council. Ilo BACKGROUND AND INTENT OF THE PROGRAM A. Program History. For many years, the City of Monterey, like most cities in the State of California, did not have a very large discretionary income. While being one of the most beautiful as well as historical locations in the Western United States, Monterey was a working person's city. This was illustrated by the sardine canneries, which operated from the turn of the century through the 1950's. While Monterey became a tourist destination in 1879 with the establishment of the Hotel Del Monte, tourism did not cause the city government to thrive. In fact, for many years, tourism was in direct conflict with the flourishing fishing/cannery industry. Operating canneries did not provide an enticing backdrop until they were depicted by John Steinbeck and later turned into the hostelries, shops and focal points, which they are today. Monterey was a basic service city that catered to local businesses while providing minimal services to residents. With the construction of the Monterey marina in the early 1960's, Monterey became a tourist destination in its own right. However, the California Coastal Act of 1972 limited the supply of coastal facilities for tourists throughout the 1970's, creating a pent-up demand for construction in the City. From 1981 through 1985, various elements of Monterey's local coastal land-use plans were adopted, breaking the logjam of tourist-oriented development. As a result, Monterey's tourist industry experienced explosive growth during that period. We in Monterey experienced a tremendous influx of tourist dollars as well as tourists because of the following factors: (1)the State of California 4 allows local governments to charge a transient occupancy tax on the gross receipts of hotel and motel rooms; (2) the number of such rooms in Monterey doubled from 2500 in 1981 to almost 5000 in 1985; and (3) the occupancy rates for these rooms is quite high. This situation led to a counter-reaction. Many felt that leaving this fragile environment to the action of the free market could destroy the very reason for the market's growth in the first place. Many citizens felt that the City of Monterey had to preserve what was so appealing about it, now. By 1984 this situation reached a climax. The opening of the Monterey Bay Aquarium in October of that year created monumental traffic and parking problems, which no one had been able to predict. Leading a City Council dedicated to preserving the uniqueness of Monterey, then-Mayor Clyde Roberson recommended creating a system that would funnel funds from revenues created by tourism directly into residential neighborhoods while searching for ways to deal with tourism impacts. He hoped that these funds could meet significant and long-standing needs that existed due to the lack of money in the City treasury. This would deal with one side of the problem while the physical impacts of the growth in tourism were being reevaluated. Eventually the transient-occupancy tax was raised from 8% to 10%, creating an additional $2 million per year. (This occurred after an advisory vote was taken in the election of May 1985.) This advisory ballot measure was approved by a two-thirds majority of the voters. (Note: the exact ballot language follows Section B. Charter Amendment, on page 7. Ballot arguments for and against appear in Appendix I attached hereto.) The interest in and approval of this concept as evidenced by this vote, was the underpinning of our Neighborhood Improvement Program funding. To carry out the program, the City Council authorized the formation of a Neighborhood Improvement Program Committee. This NIP Committee was comprised of the various residential neighborhood association presidents or their representatives and was assisted by a City staff member. This group first met in early 1986. At that time, more than $2 million had been set aside for the program. The NIP Committee worked out some rough policies and procedures and commenced constructing a sophisticated tool for improving the quality of life in residential neighborhoods. That tool is Monterey's Neighborhood Improvement Program. The program has grown and become more formal and complicated over the years. This manual is reflective of this maturity. 5 B. Charter Amendment. In the general election of November 8, 1988, Measure B was approved by voters of the City of Monterey. This measure was an amendment to the Monterey City Charter and incorporates the Neighborhood Improvement Program into it. The title of the measure was "Monterey City Charter Amendment Neighborhood and Community Projects Program Measure B." The body of the measure was as follows: "Shall Section 6.16 entitled, Neighborhood Improvement and Community Projects Program, be added to the Monterey City Charter to provide that at least 16% of the annual Transient Occupancy Tax revenue be budgeted for capital projects to improve the residential neighborhoods or projects of community-wide benefit, provided that the City Council may, by a four-fifths vote, reduce said budget below 16%? The Council shall select the specific projects from recommendations of a Neighborhood Improvement Program Committee composed of at least one representative from each residential neighborhood. The Committee shall be appointed by the City Council." 6 70:P E OFFICIAL BALLOT CON IQ,LICA (--'E N E F-YA,L E L E 10N �'4.OWL":S-Lt 9nall hB'am ar by prt9Cin:�!uoarn Marnaer a=hamea r_me"mor. x MEASURES 3UHM I=1 D VOTE OF 510Tr'-'ii S Crr:'OF MON d.?EY � PACK-EREY Gr^!CHAR'Z.Fi AMENDMENT r NEIGH80RHOOD AN11 COMAILIV 4"PRCJE 7S ! PRt1GRAM MEASURE d F t Sb2B Saerion 6.16 endtiee, -Neighbor- . hood LmprrrretMnt ants Community 9 o}zcts Pry rm•• be Saded to Ehe Mon- terey City Charter to prowide rat as teas: L6'o or the aunuai Tramicat Ocrupancy y T2&re+-enur he budgeted for c$pitel projects SS to i=preve thr tX.udendnl rtrigbborhoad-s or : - projects of tnmmanit-y widr beneflg�_ ; NO provided, that [he Ciry Cn neil may. by a ' four-Rfths mxe. reduce said budzet betm* 16%' Tire Council snaLt seicei the spedfke prajrm from reCOntmendihons of$t*60- horhood [miprmetnmnt Program Commituo campased of nt Jrust one represenmriwe from resWenual neip„i��Ir:hOf 4t. Tbc L.OrA- F mittrC 9i1T[L Ae lFhe ChY This amendment was adopted by a wide majority of voters. The resultant codification of the measure, and what currently charters the Neighborhood Improvement Program Committee and the Neighborhood Improvement Program in the Monterey City Charter is as follows: Section 6.16 Neighborhood and Community Improvement Program. a) Purpose: The purpose of the Neighborhood and Community Improvement Program is to insure that a minimum portion of the City's annual budget is expended to improve the residential neighborhoods of the City and to provide for capital projects of community-wide benefit. 7 b) Capital Projects Defined: Capital projects include, but are not limited to, streets, storm drains, sewers, sidewalks, lighting, traffic control devices, landscaping and beautification, parks, recreational facilities and other public buildings. Capital projects do not include ordinary services. c) Annual Budget: As part of the annual budget, the City Council shall appropriate at least 16% of the Transient Occupancy Tax estimated to be collected during the fiscal year to be expended on neighborhood and community improvements. If the City Council determines that there are insufficient funds available to provide for the ordinary and necessary services in any budget year, they may, by an affirmative vote of four(4) members of the City Council, reduce the amount to be appropriated for neighborhood and community improvements. d) Neighborhood Improvement Program Committee: The City Council shall appoint at least one resident from each residential neighborhood to the Neighborhood Improvement Program Committee. The Committee shall recommend a list of capital improvements desired to be accomplished in each neighborhood. Recommendations may include multi-year projects and funding. e) Council Action: From the recommendations of the Neighborhood Improvement Program Committee, the City Council shall include a Neighborhood Improvement Program in the annual budget. The determination of the projects, priorities, and expenditures shall be within the sound discretion of the City Council. "Neighborhood and Community Improvement Program" and "Neighborhood and Community Improvement Committee" has been shortened by usage and history to Neighborhood Improvement Program and Neighborhood Improvement Program Committee. The Charter Amendment indicates that community-wide and neighborhood projects can be nominated and recommended to the City Council for approval in each fiscal year's program. 8 C. What is a Neighborhood/Community-wide Improvement? As indicated in the Charter excerpt above, a neighborhood/community- wide improvement must be a capital project which has a public benefit. Section 6.16.b contains a description of the types of projects envisioned in the program. The program provides for capital projects only and not for the burden of the maintenance and operations costs those projects impose. For example, under the Charter, funds could not be used for police services to a particular neighborhood nor could they be used for park maintenance or beach cleaning. The City Council has, however, accepted the reforestation/landscaping/tree planting (but not maintenance) of City greenbelts and open spaces as capital projects. This was confirmed by minute motion at a City Council meeting. D. Neighborhood Improvement Program Committee Formation. The Charter specifies the composition and functions of the Neighborhood Improvement Program Committee. The NIP Committee itself will be formed under the following rule: Prior to January of each year, the neighborhood associations will submit the names of their Presidents, representatives, and/or designated alternates to the Neighborhood Improvement Program Committee designated staff coordinator ("NIP Coordinator"). The NIP Coordinator will forward these recommendations to the City Council for their recognition and approval. If the City Council wishes to reject any of the names on the list, the NIP Committee recommends that the Council not substitute names but rather request other names from the applicable neighborhood. The City Council shall approve any change of NIP Committee members during the calendar year. After approval, new representatives and alternates must file all applicable forms with the City Clerk within 10 days of their first meeting. The list of all NIP Committee members and their phone numbers will be distributed to the balance of the Committee. 111. PROGRAM FUNDING A. Transient Occupancy Tax (TOT). The Charter indicates that a "minimum" of 16% of the annually estimated TOT will be allocated to the "Neighborhood and Community Improvement Program." These funds are transferred to a Neighborhood Improvement Fund which 9 is a separate fund of the City and administered by the Finance Director. While not so stated in the Charter, accrued interest on the balance of these funds, as indicated by the average percent return on investments accrued through the City's overall investment portfolio, may be credited to the fund as well. B. Neighborhood Base Allocation. The Neighborhood Improvement Fund will have an element called the "Neighborhood Base Allocation." This will be a separate revenue account for each neighborhood. The neighborhood base allocation will consist of an amount equal to $7.50 per capita per year. These neighborhood base allocations will accrue interest in the same manner as indicated above. The formula for the base allocation can be changed from year to year by the City Council upon a recommendation of the Neighborhood Improvement Committee ("NIP Committee"). Neighborhoods may use their base allocation to provide funding for any Neighborhood Improvement project. The NIP Committee shall vote on each project separately that is proposed for full funding from Neighborhood Base Allocation. C. Base Allocation Carryover. The Neighborhood Base Allocation for any neighborhood that has an active neighborhood association may be carried over for no more than two years unless approved by the NIP Committee. Base allocations may not accumulate for unrepresented areas. D. Per Capita Formula. The population for each neighborhood will be calculated by the Monterey Community Development Department. United States Census figures will be used. Major additions/deletions to a neighborhood, such as new subdivision/apartments that greatly affect these population figures, will cause a population adjustment. Any neighborhood can submit proposed revisions in their population figures to the NIP Committee for consideration and concurrence between census periods. E. Contingency Fund. Unanticipated costs within the original scope of the project(i.e. costs that were unknown when project cost was estimated) are covered by the "Contingency Fund." The NIP Committee will consider the creation and maintenance of a Contingency Fund annually. The goal is 10% of the budget, but the NIP Committee has the right to adjust this amount as applicable each year. City staff is allowed to use the Contingency Fund for individual project construction cost estimate overruns of a maximum of 10% and land acquisition cost estimate overruns of a maximum of 5%. If an individual project cost exceeds these contingency authorizations, staff must get authority from the NIP Committee and the City Council to commence work. The NIP Committee can set a dollar cap on individual 10 land acquisitions exclusive of the 5% contingency. If it does so, the motion approving the land acquisition will indicate the same. F. Preliminary Protect Development Fund. Costs associated with NIP project development at the preliminary estimate phase prior to account numbers being assigned. Preliminary Project Development may include, but is not limited to, cost of preparing project estimates, neighborhood consensus meetings, field visits, budget set-up, general staff support and other project related expenses. Overhead or Administrative costs not directly attributable to submitted NIP projects are not charged to the Preliminary Project Development fund. The NIP Coordinator shall submit to the NIP Committee an amount for the Preliminary Project Development Fund based on the current balance in the fund, the prior year's activities and anticipated costs for the next year. The NIP Committee shall discuss and recommend an amount for the Preliminary Project Development Fund that becomes part of the NIP budget that is recommended to the City Council. Any increase to the recommended or approved Preliminary Project Development Fund amount shall be brought back to the NIP Committee for approval prior to incurring those expenses. G. Projects Charged to the Fund. All projects charged to the Neighborhood Improvement Fund or any sub-element of it(Neighborhood Base Allocation) must have the prior approval of the NIP Committee. Proposed changes to project cost estimates previously approved by NIP Committee, Contingency Fund, or Preliminary Project Development Fund are subject to this requirement. 11 IV. NEIGHBORHOOD IMPROVEMENT PROGRAM COMMITTEE A. What is a Neighborhood? Webster defines a neighborhood as "the people living near one another" or "a section lived in by neighbors and usually having distinguishing characteristics." For NIP purposes, an area must be eligible for NIP-funded projects within its boundaries to qualify as a neighborhood. Currently, Monterey has sixteen (16) distinctive neighborhoods. These neighborhoods are: NEIGHBORHOOD POPULATION - 2000 1 Aguajito Oaks 102 2 Alta Mesa 337 3 Casanova-Oak Knoll 1852 4 Deer Flats 540 5 Del Monte Beach 523 6 Del Monte Grove-Laguna Grande 1276 7 Downtown 158 8 Fisherman's Flats 481 9 Glenwood 1246 10 Monterey Vista 4116 11 New Monterey 5320 12 Oak Grove 1658 13 Old Town 3220 14 Skyline Forest 786 15 Skyline Ridge Estates 166 16 Villa Del Monte 911 ' Revised FY00/01 A map showing the above neighborhoods follows on the next page. 12 CITY OF MONTEREY NEIGH H 11 13 1 10 2 � 1. Acuajito Oaks g. Glenwood I Alta Mesa 10: Monterey Vista 3. Casanova-0alk Knoll 1 t: New Monterey4. Dear Ftats 1 Z Oak Grove 5. Del Monte Beach 13, Did To-n 6. Del Monte Gro,*- aguna Grarfde 14, Skyline Forest 7. Downtmn 15. Skyline Ridge 8: Fisherman's Flats 16, Villa Del Monte With the exception of Downtovm and Glenwood,these neighborhoods all have some,form of Mighborhoorl or homeowners association. 13 B. Association Registration. Each calendar year all neighborhoods are required to have on file in the City Clerk's office a current copy of neighborhood association bylaws and a list of the officers selected for that year. By the third Friday of September, each neighborhood association must submit a letter signed by an officer of the association board to the NIP Coordinator with the names of proposed representatives and alternates and the date of the General Meeting or Board Meeting when the nominations were formally acted upon by the Association. Nominees may be interviewed by a subcommittee of the City Council prior to formal City Council approval of the NIP Committee and alternates in December. New and returning representatives and alternates must have Conflict of Interest Forms 700 on file with the City Clerk prior to participation on the NIP Committee. Completed forms and documentation are maintained by the City Clerk and by the NIP Coordinator of the Neighborhood Improvement Program. C. Role of the Neighborhood Improvement Program Committee. The role of the Neighborhood Improvement Program Committee is to "recommend a list of capital improvements desired to be accomplished in each neighborhood" (MCC 6.16d)to the City Council. The role of the NIP Committee is advisory in nature. The City Council is responsible for all final decisions. Each member of the NIP Committee represents the interests of all residents and property owners within their neighborhood. They do not represent their neighborhood association. D. Role of the NIP Coordinator, Spokesperson and Alternates. The NIP Committee has no Chairperson. Meetings are conducted by the designated Monterey City NIP Coordinator, who is appointed by the Monterey City Manager. The NIP Coordinator acts as a neutral facilitator and not a project advocate. The NIP Spokesperson and alternates are selected by the NIP Committee by vote at the January Kick-off Meeting for a one-year term. The role of Spokesperson/Alternate is to attend City Commission and City Council meetings, the Mayor's Lunch, and any related City gatherings to clarify NIP Committee actions and to raise policy issues as directed by majority vote of the NIP Committee. E. Rules of Proceeding/Changes. Roberts Rules of Order will be used at all NIP Committee proceedings. The NIP Coordinator ensures that minutes are taken at all meetings and that a written record is maintained in City archives. Additionally, each 14 meeting is taped and the tapes stored for future reference (at least two years). Policy Manual Subcommittee. Two or more members are selected by the NIP Committee by vote at the January Kick-off Meeting for a one-year term. The Policy Manual Subcommittee is responsible for drafting revisions and additions to the NIP Policies and Procedures Manual as directed by the NIP Committee. Possible changes to the NIP Policy Manual are discussed by the NIP Committee after the NIP budget has been adopted. Recommendations to add or change any rule or procedure contained in this manual may be noted at NIP meetings or submitted in writing. All revisions and additions are discussed and voted on by the NIP Committee as a recommendation to City Council for adoption. NIP- Committee-approved revisions and additions are taken to the City Council NIP Subcommittee for discussion prior to being taken to full City Council. F. Special Meetings/Agenda Items. Any Representative of the NIP Committee can call a special meeting by sending a written request to the NIP Coordinator. The NIP Coordinator will do everything possible to ensure an appropriate date is scheduled to occur within fourteen (14) days of receiving the request and then inform the membership, in writing, of the time, date, place and subject of the meeting. Any NIP Committee member can place an item on the agenda by communicating with the NIP Coordinator at least two weeks prior to any meeting. Requests for discussion of general topics, other than change of scope, deappropriation or opportunity buying, will be brought to the NIP Committee for approval to agendize at a future meeting. V. THE NEIGHBORHOOD IMPROVEMENT PROCESS A. Orientation Meeting. An orientation meeting shall be conducted within the first forty-five days of each calendar year. New representatives will be advised of the existence of Area Plans, Traffic Calming Studies and other relevant City.documents and told that they may request copies. At that meeting, the NIP Committee will also adopt a proposed schedule for the annual program and conduct a mid-year review of previously approved projects and current `cut-off projects. B. Project Nomination. Nominations for projects may be made by individuals, organizations or City staff. Nominations may be submitted to neighborhood associations or directly to the NIP Coordinator. The proposer's name, address and/or telephone number must appear on the 15 nomination form for the project to be considered. The project nomination form includes a separate section for neighborhood comments. Use this space to note if the project is to be funded in phases. It is preferred that the name of an individual contact person be given on the Proposal Form, rather than an organization. Forms: Nomination forms are prepared by staff and distributed at the orientation meeting. Additionally, nomination forms are made available to the general public through the City Focus newsletter; projects may be nominated throughout the year. Staff may prepare preliminary cost estimates on valid NIP projects throughout the year. Submittal Deadline: The period for making project nominations closes in mid-February. Any project submitted after that time will be considered for the following year. The deadline for nomination of projects is published in local newspapers. Consensus: NIP representatives are required to determine to what extent projects have support within their neighborhood. For projects in the public right-of-way, NIP representatives determine the extent of support from property-owners/residents whose properties are adjacent to or within 300 lineal feet of the physical changes proposed. Neighborhood Association recommendations are encouraged for projects of broader neighborhood impact (e.g. parks). Representatives record the extent of support and the geographic area surveyed, if applicable, on the nomination forms. Support documentation (phone logs, petitions, letters of support from adjacent owners/residents and/or affected owners/residents within 300 lineal feet of the project) shall be provided to the NIP Committee by the "Review of the Projects" meeting (April). For staff-nominated projects in unrepresented neighborhoods, staff shall confirm neighborhood support. Traffic and Traffic-Related: Neighborhoods are urged to contact the City Traffic Engineering Division about proposed roadway configuration or direction changes at the earliest possible date. Traffic Committee and/or Planning Commission may need to review proposals. City Council shall approve proposed changes prior to being eligible for NIP funding. The review process may take several months. A "Traffic Calming Study," conducted in accordance with the policies and procedures of the City of Monterey and the Traffic Division, shall be completed and the resulting "Neighborhood Traffic Calming Plan" shall be approved by City Council prior to any neighborhood traffic calming project being approved by the NIP Committee. A Traffic Calming Study studies traffic circulation within an identified area (an entire neighborhood or part thereof), allowing all owners and residents to work with a traffic consultant to develop a Neighborhood Traffic Calming Plan for that area. The goal of 16 the Traffic Calming Study and resulting Neighborhood Traffic Calming Plan is to increase safety and reduce speed within that area. NIP may fund a Traffic Calming Study and resulting Neighborhood Traffic Calming Plan. Only neighborhood traffic calming-related projects included in a Neighborhood Traffic Calming Plan, defined herein, can be funded by NIP. For any traffic-related project, all properties that front onto the project and any properties within 300 lineal feet are the `affected owners/residents." A petition signed by a majority of"affected owners/residents" is required to show consensus of support. The petition format is available from the NIP Coordinator. Staff will conduct an informational meeting to which all affected owners and residents are invited. That meeting will be held prior to the NIP vote in April. Once a conceptual design has been agreed upon by owners directly adjacent to the project, owners will be asked.to sign the design. Assessment Districts: Projects that require the formation of an assessment district, such as undergrounding utilities, are required to have a petition signed by a majority of the affected property owners, showing that they are willing to financially support the project. The petition format may be obtained from the NIP Coordinator. Out of Jurisdiction Projects: When projects are proposed for property not within the jurisdiction of the City of Monterey or outside the city limits of Monterey, the person or entity submitting the project shall provide documentation as required below: a. If the property is owned by county, state, or federal governments, the submitter shall provide documentation of conceptual approval of the controlling jurisdiction as well as information stating that shared funding has been considered by said board. b. If the property is under the jurisdiction of an independent agency, such as the Monterey Peninsula Unified School District or Airport District, submitter shall provide documentation that the proposed project has received conceptual approval of the board of directors of said agency and joint funding has been considered by said board. Prior to start of construction on projects described in the paragraph above, there must be executed a comprehensive Joint Use Agreement, Funding Agreement and/or Lease to protect the City's investment and ensure use of the completed project by Monterey City residents. 17 Projects on Private Property: Any capital improvement on privately owned property requires a dedicated public easement before funds can be expended. NIP/Council Communication: Whether by joint session with NIP, by Council NIP subcommittee, or by staff, the City Council shall let the NIP Committee know of its project priorities to be undertaken during the upcoming budget cycle, if any. If the City Council has project priorities, the City Council's discussions and communication to the NIP Committee will take place not later than the second (2"d) City Council meeting in January and prior to the project submittal date in mid-February. In March, the preliminary list of proposed projects is taken to the City Council for review. The City Council, at its discretion, may review the list and, by Council NIP subcommittee or by staff, provide the NIP Committee with an advisory list of projects designated as "City Council Priority Projects." Responsibilities of the NIP Coordinator include but are not limited to: 1) ensure that NIP Committee members and alternates have completed all State-required paperwork (Form 700) 2) see that nominations are screened for duplication and consistency 3) ensure that each neighborhood representative receives a complete set of nominations for his/her neighborhood as soon as possible. This allows the neighborhood association the opportunity to gather public comment for prioritizing all projects proposed for their neighborhood. 4) facilitate and coordinate NIP meetings 5) coordinate development and execution of the NIP program. C. Preliminary Project Screening Meeting Soon after the close of the nomination period, staff sends copies of neighborhood project submittals to NIP Committee members for refinement. The NIP Committee then meets to weed out duplicates, projects already funded, proposals that are not capital projects, etc. Early revisions to project scope are noted. Proposals ordinarily funded by other City programs may be referred to those departments. Responsibilities of Representatives: 1) transfer and clarify projects from City Focus newsletter cards onto Project Nomination Forms 18 2) clarify incomplete Project Nomination Forms Cost estimates are based on the scope (the stated purpose or goal) of the project described on the Project Nomination Forms. THE FORMS MUST BE COMPLETED AND PROJECTS FULLY DESCRIBED BY THE PRELIMINARY PROJECT SCREENING MEETING. D. Cost/Information Formulation by Staff. Staff computes preliminary cost estimates and reviews the physical feasibility of projects. Cost estimates are included in the complete set of nominations sent to each neighborhood association. Preliminary cost estimates are extremely important because they influence the voting for final prioritization. Staff will contact the nominator(s) of projects if there are questions. In addition, as the cost estimate process proceeds, staff will gather as much information on each project as possible, including design, construction, and administrative overhead consistent with project requirements. A videotape showing each project will be prepared by staff. E. NIP Committee Meeting to Review Project Nominations. The NIP Committee meets at least once for the purpose of reviewing project nominations. At this meeting, the staff videotape is shown. If there are more than 120 projects nominated, the review will be done in two evenings. Each neighborhood representative may briefly discuss their neighborhood's projects, stating neighborhood priority, describing the degree of consensus for each project and base allocation information if known. F.. Van Tour and Committee Discussion Meeting. The NIP Committee may decide by consensus to have a van tour of selected projects. It is strongly encouraged that a representative or alternate from each neighborhood participate. An evening session for NIP Committee discussion and clarification of project scope follows. G. Public Discussion Meeting. A meeting is dedicated for members of the public to address the NIP Committee concerning projects proposed for funding. The NIP Committee may choose to divide projects into two public discussion meetings if there are a large number of projects proposed for that year. It is advisable that Neighborhood Representatives tell the NIP Committee of their Neighborhood's voting priorities at this meeting. 19 H. Committee Meeting to Rank Projects and Prepare Recommendations for the City Council. This is the most important meeting of the NIP budget cycle. Individual neighborhood representatives can vote only if that representative or alternate (the one voting) attended the April Project Review meetings or reviewed the video and tape-recorded proceedings of missed meetings. The NIP Committee has approved the following check list as a guide for project ranking (This is not to be construed as priority order.) • Project is consistent with City or neighborhood plans. • Project has confirmed neighborhood support. • Project is feasible and can be completed in a reasonable time. • Project provides a health and safety benefit for residents. • Project reduces potential property damage. • Project promotes improvement in traffic/safety flow. • Project addresses a documented neighborhood deficiency. • Project completes or ties together an existing improvement. • Degree of neighborhood improvement and beautification. • Project promotes neighborhood self-help efforts. • High benefit compared to cost. • Water and energy conservation project. • Project reduces operation and maintenance costs of capital assets. • Neighborhood is willing to spend its base allocation on the project. • Availability for public use. To determine relative merit of traffic-related projects, NIP Committee members are urged to refer to the Staff Criteria for Traffic Related Projects. The following procedures will be followed: a. All submitted projects will be considered in the voting process regardless of whether the representative from a given neighborhood is present. b. Each neighborhood representative indicates on the form, as well as in person, whether any part of a neighborhood's base allocation can be used toward the project. C. There are no proxy votes. d. Each registered neighborhood has one vote. e. Any change in the voting method shall be decided by a majority.of the NIP Committee prior to the beginning of the next programming cycle. 20 f. Members of the public remain seated during the voting process. The public is encouraged to comment upon any projects prior to voting. g. Only Staff counts the votes. Two Staff members check the tally. h. A record of the vote on each project is kept. It includes recording the vote count and neighborhoods voting to ensure a neighborhood has not inadvertently put two or more votes on one project. i. After the votes are all recorded, the neighborhood representatives retrieve their voting cards for the next round of votes. Voting continues until available funds are voted. j. The NIP Committee has the discretion to recommend additional unfunded "Cut-off' projects to City Council. As funding becomes available during the fiscal year, staff shall come back to the NIP Committee for approval before proceeding with "Cut-off' projects. City Council approval is also required. Any "Cut-off' projects not funded by the January kick-off meeting will be resubmitted by staff for consideration by the NIP Committee the following year. k. The NIP Program that is recommended for Council approval is comprised of the following_ • a list of recommended projects that includes cost estimates for each project, • estimated cost of ongoing Operations & Maintenance where applicable, • Contingency Fund, and • Preliminary Project Development Fund. Council may choose not to fund one or more projects. Any change to NIP recommended dollar amounts must go back to the NIP Committee for approval prior to adoption by the City Council. NIP representatives are responsible for amending any of their neighborhood's project nomination forms to reflect revisions to scope of project. I. Recommendations from the NIP Committee Prioritization Meeting. The NIP Committee recommendations are presented by the NIP Coordinator to the City Council at the next appropriate Council meeting for comment/discussion. As part of the budget review process and in accordance with California State Law and the City Charter, the prioritized 21 list of recommended NIP projects is sent by the NIP Coordinator to the Planning Commission and Parks and Recreation Commission for conformity with the City's adopted General Plan, Area Plans, Parks Master Plan and other policy documents before being forwarded to the City Council. The NIP Coordinator incorporates the recommendations into the City proposed budget or budget amendment. Throughout the budget review process, the NIP Spokesperson presents relevant information on the project list as a whole and on individual projects which require clarification. Details about a neighborhood project may also be provided by the neighborhood's NIP representative. The NIP fiscal year begins no sooner than July 1 and only after the City Council acts on the final budget. The complete list of the NIP approved projects will be published in the City Focus or a local newspaper for review by the community. J. Project Implementation/Construction. All citizens should understand that the implementation of the projects approved by the City Council under the Neighborhood Improvement Program will occur in conjunction with the balance of the City's Capital Improvement Program (CIP). This will provide for economies of scale and is also the most efficient way to implement the NIP. ® Projects approved in one fiscal year should be completed by the conclusion of that year. This will not always be possible and, in fact, the City Charter Amendment allows for multi-year funding of projects. ® The City staff will use every opportunity to keep the NIP Committee as well as the citizens informed of construction progress. Change of Scope: The NIP Committee shall meet and discuss requests to change the original intent of the scope, to significantly alter the project beyond its initial description, or to significantly increase the cost of an approved/funded project. Prior to that meeting, staff notifies the neighborhood representative who notifies affected neighborhood residents and original submitter, if possible. a. If the project is not feasible as originally approved, the NIP Committee will review the details and documentation with Staff. b. If neighborhood residents want the project scope changed, the neighborhood representative will discuss to what extent there is neighborhood consensus to revise the scope. No action will be taken unless the neighborhood representative or alternate is present for the meeting. C. If a citywide project is brought to the NIP Committee for change of scope, staff will discuss relevant details. 22 d. If a petition signed by affected residents and property owners has been submitted, the petition will be provided to the NIP Committee. Any significant change of scope will be taken back to original supporters. e. If the proposed change of scope is significant enough, the NIP Committee may choose to deappropriate the project. f. The NIP Committee's vote may need to be forwarded as a recommendation to the City Council. The NIP Committee may choose to put a deadline on a specific project, triggering follow-up NIP Committee review and action. City Staff may also bring back for review any project that has encountered unanticipated problems or extenuating circumstances that threaten to delay the project for an extended period of time. Plaques or other modest signage that identifies Neighborhood Improvement Program funding for projects is desired where feasible. K. Schedule of Time Lines with City Budget Process. The following schedule is a proposed time line for the Neighborhood Improvement Program. Please note that these are targeted time lines and general in nature. NIP GENERAL ANNUAL SCHEDULE TENTATIVE The following general schedule is tentative. Each year the NIP Committee sets a specific schedule. 1. SEP 15 Representatives/Alternates Submitted. Names of neighborhood representatives and alternates are submitted to NIP Coordinator. 2. OCT Council NIP Subcommittee may interview nominees for representative and alternates 3. JAN 2 Council Approval of Representatives and 1 st Alternates. Council NIP subcommittee recommends Council names of neighborhood representatives and Meeting alternates to City Council for approval. 4. JAN 15 Submittal of Form 700 to City Clerk's Office. In order to participate, new representatives and alternates must have turned in all required forms to City Clerk's office. 23 5. JAN 16 Council Discusses Budget Priorities Whether by joint session with NIP, by Council NIP subcommittee, or by staff, Council lets NIP know of priority projects being undertaken in the upcoming budget cycle. 6. JAN 22 Orientation Meeting. The NIP Committee holds an orientation each year for members and alternates. The schedule of NIP Meetings is adopted at this meeting. Status of projects is reviewed. 7. FEB 15 Project Nomination Deadline. Project nominations must be submitted to the City directly or through neighborhood associations by this date. 8. FEB 25 Preliminary Proiect Screening Meeting. Projects are reviewed and discussed between NIP Coordinator and NIP Committee to "weed out" projects that are not capital improvement projects or are duplicates, violate area or use plans, or are withdrawn by the project submitter. 9. MAR 15 Council Project Review Council receives the preliminary list of projects. Council comments are taken back to the NIP Committee. 10. MAR 31 Project Review Deadline. Projects nominated for funding have been reviewed by staff, neighborhood associations, Traffic Committee and Planning Commission (as appropriate) and the Parks and Recreation Commission (parks-related items only). Rough cost estimates have been formulated. 11. APR 15 NIP Committee Review Deadline. The NIP Committee will have met to review all projects by this date. A staff produced video and NIP representative presentations are included in the review. More than one meeting may be needed. Projects may be eliminated or reduced in scope at this time. 12. APR 22 Van Tour. A van tour is held to visit specific projects. A meeting following the van tour is held to discuss the projects. Answers to questions from the April 15th meeting are addressed by staff or NIP representatives as appropriate. 24 13. APR 24 Public Discussion. The NIP Committee hears comments from the public in an informal discussion format. 14. MAY 1 Protect Selection Process. The NIP will rank order all projects and compose their final recommendation to the City Council. 15. MAY/JUNE Council Presentation. The NIP Committee recommendation is presented to the City Council along with comments from the Planning Commission and Parks and Recreation Commission as part of the budget process. L. Deappropriation of Approved Projects. In the event that an approved project is not feasible or is no longer wanted, the following procedure shall be followed: 1. The NIP Committee will meet and discuss the project. Prior to that meeting, staff will notify the neighborhood representative who will notify affected neighborhood residents and the original submitter, if possible. If a citywide project, staff will notify the original submitter. a. If the project is not feasible, the NIP Committee will review the details and documentation with Staff. b. If a neighborhood project is no longer wanted, the neighborhood representative will discuss to what extent there is neighborhood consensus to deappropriate the funds. No deappropriation action will be taken if the neighborhood representative or alternate is absent from the meeting. c. If a citywide project is not feasible or no longer wanted, staff will discuss the pertinent facts. d. If a petition signed by "affected residents and property owners" has been submitted, the petition will be provided to the NIP Committee. 2. A vote of the NIP Committee is required to deappropriate funds. The End-of-Year Close-Out List of completed projects is not to include any deappropriated projects. 3. The NIP Committee's vote is to be forwarded as a recommendation to the City Council. 4. Funds deappropriated are transferred to the NIP Ending Balance 25 and neighborhood base allocation, if appropriate. 5. To reinstate a deappropriated project, a nomination form shall be resubmitted for consideration through the standard project nomination process. VI. PROPERTY ACQUISITION PROCEDURES A. General. The acquisition of property for public use is complicated and time consuming. Timeliness, budget, the far-ranging effect on surrounding property owners, and intracommission/committee coordination and communication are all-important elements. S. Methods. There are two basic methods for property purchases under the Neighborhood Improvement Program. These are: 1. Regular Cycle. Properties can be purchased under the regular rules of the NIP Committee as indicated above and in the same manner as for any other project. Additional steps are required, such as appraisal, preliminary title search and usually input from the Parks and Recreation Commission. Nevertheless a property could be nominated for purchase during the regular cycle of events. 2. Opportunity Purchase. Due to the fast-moving real estate market in the City of Monterey, an NIP opportunity purchase is more likely than a regular cycle property purchase. In the past, the NIP Committee has set aside a large sum to be used for opportunity purchases throughout the year. If funds have been budgeted for opportunity purchases, this type of purchase should follow the procedure below. a. An NIP Committee member submits a written nomination for a property purchase to the NIP Coordinator. The written nomination will indicate whatever the neighborhood representative knows about the property's zoning, related discussion in an area plan and/or the Parks Master Plan, and any other pertinent facts or planning issues. The submittal of the project will constitute a request for a Special Meeting as outlined above. b. An NIP meeting will be scheduled by the NIP Coordinator within two weeks of the request. Simultaneously, the NIP Coordinator will forward copies of the nomination to the City Council and Parks and Recreation Commission for review and comment on their next Agendas. Parks & Recreation 26 Commission will review the proposed use and consider its conformity to the Parks Master Plan, City General Plan, and adopted area plans. Operational and maintenance costs are to be identified. It is desirable that the Parks & Recreation comments be available for the NIP meeting and City Council preliminary review, but the process should not be delayed for them. C. The NIP Coordinator will ask the City's real estate consultant to contact the owner or sales agent to determine the asking price and do a preliminary investigation into the ownership of the property, including easements and other conditional aspects that relate to it. The NIP Coordinator will review related zoning and planning issues, identifying any special considerations. d. The NIP Committee shall hold its Special Meeting and determine by vote whether staff is to proceed with the acquisition process. e. The City Council does a preliminary review of the NIP Committee's recommended purchase to be certain that the City is interested in owning the property. A negative vote stops the acquisition process. f. The Property/Housing Manager will obtain a letter of appraisal from the City's real estate consultant for the property. g. The NIP Committee's nomination, the letter of appraisal, and the Parks & Recreation Commission recommendation will be forwarded to the City Council for approval. h. If the City Council approves the purchase, the Property/Housing Manager will request that the real estate consultant begin negotiations for the property. i. The property will be purchased if the negotiations are successful and the City Council approves. j. The acquisition will be placed into the City-owned inventory and be utilized as directed by the City Council. 27 Time Model. A theoretical best time model of this approach is listed below: 1. August 27 (Thursday). NIP Committee member contacts the NIP Coordinator and recommends an opportunity purchase. As soon thereafter as possible: a. NIP Coordinator will: 1) Ask the real estate consultant to Contact sales agent or owner for asking price and other available information. 2) Contact Planning Department for conformity to the City General Plan, adopted Area Plans and Zoning. 3) Contact City Manager's Staff to insure item is placed on next City Council Agenda for preliminary review. 4) Parks and Recreation Commission Staff to insure item is placed on next agenda for discussion/input. 5) Arrange for video of site, time permitting. 6) Set emergency NIP meeting date prior to City Council preliminary review. b. Concurrently Neighborhood Association will: 1) Prepare written proposal for use of parcel and forward to NIP Coordinator immediately. Identify any zoning/planning issues associated with this parcel. 2) Prepare objective survey on the degree of support that exists for the purchase in the entire neighborhood and in the area immediately adjacent to the parcel and state whether the property is a part of the approved Neighborhood Plan. 2. September 1 (Tuesday). Parks and Recreation Commission will review the proposed use and consider its conformity to the Parks Master Plan, City General Plan, and adopted Area Plans. Operational and maintenance requirements of the proposal will be considered. Forward review and recommendation to City Council. 3. September 2 (Wednesday). NIP Committee holds emergency 28 meeting to discuss acquisition and prepare recommendation to the City Council. 4. September 15 (Tuesday). City Council does a preliminary review of the proposed purchase. If the City Council opposes this purchase, the acquisition process is halted. 5. September 16 (Wednesday). The NIP Coordinator notifies Property/Housing Manager to obtain a letter of appraisal from the City's real estate consultant. 6. October 6 (Tuesday). City Council considers the NIP recommendation, the letter of appraisal, and the Parks & Recreation Commission recommendation in deciding whether to purchase the property. 7. October 7 (Wednesday). Property/Housing Manager authorizes the City's real estate consultant to make an offer on the property. D. Additional Comment. All property acquisitions require some type of future cost to the City. An active park (such as a tot lot) or recreation center may require development costs and upkeep in addition to its acquisition costs. Open space will be maintained by the Parks Division. These additional "life- cycle" costs will be identified by the Parks and Recreation Commission and forwarded to the City Council for its consideration. `4/II. FINAL COMMENT ON THE NEIGHBORHOOD IMPROVEMENT PROGRAM The Neighborhood Improvement Program is an extremely innovative and substantive program and unique in its nature. There are very few cities which can afford to fund this kind of program anywhere in the United States. However, money is not the only unique aspect of our NIP. Requesting input from various citizen groups and neighborhood associations on matters of capital improvements, to the degree accomplished in this program, is also very unusual. We in the City of Monterey are extremely proud of this program and will work extremely hard to see that it is a continuing success. 29 APPENDIX 1 30 MrIMT-EREv CiTY CHAR7=Ji APhENDh1Ef€T IMPARTIAL ANALYSIS BY CITY ATTORt4FY IM MSORME AND VOMMUNRY PRU Er1'S FRDGRM h1:ASlIRE Y MEMPE 6 (Fldl TeX'41 M.Razilm) Tbm:r.3a>ure was ctered or.91:.z bshc:n f fie P-v Cauiai-1,-rrcprses Tr a,T,^mc top Mvrr:ar£•F Ouj'Pe-er py Edemi;Stnoo E to erhtrd'hteipr.Dc'- Mr Swzlon E-U't4niO4bu1*:rc+f lr*OYBPten-ari D3MMU4N t"oi 5 Dana enp(,)vomer.and Uni(gwny I'fGY.s".TY:w-.:plea=m tnr'.,ranv ' tG drupe 3°ff»i Animmsw.iur.'r•;ue Wnzer Cam'Ch der=ma,.e: ar,er.sirjU Fraorsmra UUMtUcf calratint•rowma•rt_mr �a^�Ga'r9yh�sr- if'ItrWS: - hauls. SUmr•zl o, .SS. DafLk, Trnraoij Starr'C-E-r W S;,1RA.j sfwer r syshrrc:,ari Prow-of Special hire.,tG ir.=-Esit.9S5 7!1.91 c 11 pus at' '":v;ar. C.1C r,s;v65rhooc IT6nY,Hnne91,one C:rnmunq Prefa.tS Pro- y,,e11115 r.'PJsCM:f acheal D`.Iwt.rr it a:' !e':*is suit a_T"aWrf.�:'.':du= ' prsa i anr athcm oubire tuildings. l a Purpw-: Thcbtraose of the NoirnbeTticotl!m]ravenMl ann CorPrnu- Lacr uuw3ot vu---.35 u'lor..misie'r Occuaarc;lax wit'kE�Lo:aUc i pity RviLCI:Progran isir.insure,1;a:a mnimum oorbon a:the 0my s aviial tE the rm6r lr,b rp--r-,f a-,nnpowe z:A wat om f or blp7pe:G exparoed to nrp'our.bne;tsiaemial mphtrcftaft ;We erd &=n nuivib3MDOC ors.Lr apa3inu:c ar tine aTe Grar ;.Tnis wmnite wll ±c pru•,idp ter Caine[pnnci.,of w nrnuluK,dne Deq& ilic3nmend t3 the CiLv Coh:icp ire pr.,iws tie;wh,:i;Re-JUP.05 Star.d bE b. Cdpi[al P.mje[[s reF leG: Cap el L ttfw inGutlr.G a!?nor rimit9d spur;.-on Leese r3Mmmcrda::ant•tA C.� :nl.nell-.0 seiecl the UD:vt: a-suHg5,storm emrn=.sawem,simewalmG,ugrnr.G,trstfr.cumol opliM 1 9c cc 1sr,rumxed w1L9 tns availabma tunas. sall ' largMmpino and bUJUIPn rks,pa .Wftiitma:ia:ilitiM afl9 DO aubliC Tk.E nve na.pmeumic Inc mt<:available r+' mrit&gs.Cuita:prare:fs cc nc mraua*ordnar'wN'= Jun& Jr:podltiona Mvital rnr:irL-&t81[5.If :n ern''ream year,afhe'MJ- `m C dnD oil F.udgm: JLt ppd of nit apaua.boogel 1h.wty Courai'inah fiinn ut lctg,7r;iumi.;,meettne POErat ivi excens9,1,c'thp:il-,Lle::Juno upwocttnt a:Iw-. 1 ti5_ur To-Transient O--dpanvi Tax sst1mwd tD op. 1ta'.ren9rp the 15�i cscg?L J trbrr ne T;,-Lien-O.:u9Enty Tax 1c a muse' m m ected dummy toe mmiyear le ba xiwndea on Nalphooriloor and:ilnvm: e,Roun. r M. impranmentE. tlh°Commrrdl delermnes niatthet are imilicientiuntls ' avellabe.to prvAjE fix iP-, BrCsner,.,a'IL remvwy;e'vw'In ape tuogel Hff,7aMvP/sup.11ruc, year.th9V M,by an afiimaJve vo±ea'tau-14,mfrrt99r>n=ths QyfaunC+l, f a.-Nt,hrn C tkrsh rRouce t'ms amain[to b• spwoMe:t:s rb�gkDartood and Comnunlrr + At MMey . 1 Irn M"TI ems. l d Wghbomau,11m9rnemeNP-ayramGW,'rMee:TPUMCocla13up1I appoint br taV ene Peeresentriya train earn TmidmlU nelphtrrrhaod m the keghjortubJ Imprnyeerm:ml Prcgrpm Commute` Tty P,wrniaec Shall rae- vmTAnti a W of canbl 1rnp.-ayenref%s Pusan[1b be a6wn;Dl"msned it w.M negI1zwb6l rt=a1mandatlins rd}'.incivae rnty.:-yea•on:leM all;fund• inu. F E.Wow,Act m From the rwDmMftr,=ons W.'fie NdlFnbarhCaG Imi-�I - provernem:'. Prag-M. �urnmiftee th'CgLrnch Stoa,l iremi a Plaignfiartniod :maraeementProFdrnh1115annualaudpe..-fne det•-mirtat an t:heprujec*, pri3rit#n.+am acilfj rdryrra=viah pP wbir the SauRJ dscratimi a.'the"C�y Coune:" AROUNIMT IN FAVOR OF IllEASUNr R toe Netg�bjl?. ?l.rryrovem.6^.Fund was ardall6rter. o:965 fJllomriiq ar.adYn7fy s+OLewhiCP i'IB 1g7mdmims Ovemk'lelrnim,giy ayE11YB�.TM:n1eaSU srdter.Mr.a ooriion of.1e[Rwe.w in the ldtellrlCrM`ra wCtdd lie JSed ror",irirposasasr4mghborhotdandCe:,kimpruvdrfr Ms:;mrreurvpwP ei opan.wre and it--Awr.'rcx-t,Ono eincr municipal'Jrrbli:lacW-'imaro). II MMS.' Sian Ohm. aumrut S1 million a Via'has deer Eper.:,abDV'flE T'e' Of Cartrpl expertMrz-•to:wallfwfly5 And sid9P WKS,Stfe--'imeNweMUNIS.end I bay e:marrsiar WITI'NO TAX UJCRE*F TO RFSIENT5 W.-igrever Mt IOD{ r iP iAonitrer'.,roEea±l e�Votitlpriurr>�ulGrafL9e,�ErGrtaris r0.7 mnm�rnmC(iL4. The Chnzr Amendme 1 Wi':m9ke the NeidMC.'hDor.ImerivernCr:Fear z oumtanou prn t•r etie,:+n'budget and irsure C4ar E parran of-hf nc.9'-riot-_ Tax will Gl enfe�l7!a rsUr r1Clt1hp7rhaodE.l+F CCrl3aleC_n".iI[3::,"since v.ST.C:s ri5.Cf:!ladI?je,orwi oarviR: it is oruy apm.E aria["Mai Vwj.VY Cmeir td-r ft�fP:C:r311ceanr-fi(eDT9tsrdion s;rtmamc road nmainferranu r-ecneprinn , opper(Whes.arrd rthE-aty'b11100 _. :pE Nutt(Amenvmem,'w-ir nelp uS preeen•u Cur;, .T:aslti: a IcaU Itiel o;servicu'a ou`.1tims.end"d Marnerey a bualltibi pta[e t,vlsr K vme:l es Mry are Iruc.' zi Glyec Wpbe:'sor y i.c..mdirlu ue- s;Dan loran i Ma1Nr _i Haiti Vme'ane j i C3UMilrn.•T.oe- g;;prl fmmr fAUnC`ime'r:7P.- i S '179resa Carfta WurtC!maa's8; i I r REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/2010 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner SUBJECT: Require park in-lieu fees to be spent on parkland development whenever the per-capita park acreage ratio is below the requirement specified in the General Plan. Statement of Issue: The city's General Plan requires 5 acres of parks (including beaches) for every 1,000 residents. In 1992 the city exceeded this requirement by 49 acres, but by 2009 the city fell short of the requirement by 4.2 acres, and the Beach-Edinger Corridor Specific Plan is poised to dramatically worsen the deficit. My proposal would require that whenever the current per- capita ratio falls short of the General Plan, park in-lieu fees shall only be spent on parkland development. Recommended Action: Motion to: Amend Huntington Beach charter to add new section as follows: Whenever the current city-wide ratio of park land per 1,000 people is less than the city standard established under the Quimby Act (Gov Code Section 66477), park in-lieu fees collected under the Act shall only be spent to develop new neighborhood or community park or recreational facilities, and the time limit for committing such fees shall be extended by the amount of time that the park ratio is less than the city standard. Analysis: As noted in my attached letter dated August 9, 2009, the city has swung from a surplus of parkland to a deficit of parkland (my letter cites a deficit of at least 10 acres, but the city's subsequent DTSP Final EIR response to my letter cites a revised deficit of 4.2 acres). The reason for this is a city reluctance to require residential developers to provide sufficient on-site parkland for the new residents, in combination with a tendency to - l - 12/22/2009 7:34 PM REQUEST FOR CHARTER REVIEW C®1VIMISSION ACTION MEETING DATE(S): 01/05/2010 spend the resulting park in-lieu fees on maintenance of existing parks rather than developing new parkland to meet the recreational needs of the new residents. The Quimby Act (Gov Code Section 66477) allows cities to require the dedication of parkland or the payment of fees in lieu thereof, or a combination of both, as a condition to the approval of residential developments. For Huntington Beach, the General Plan requires the amount of parkland to be dedicated to be in the ratio of 5 acres per thousand residents pro-rated to the expected population of the new subdivision. Quimby allows developers who do not wish to provide the required amount of on- site parkland to instead pay in-lieu fees. The city can then use the fees either for off-site parkland development or maintenance of existing parks (that would serve the new residents of the subdivision). Any such in-lieu fees must be committed within 5 years (to either development or maintenance) or else be refunded to the residents of the subdivision. As the city approaches build-out, opportunities to develop new parkland become increasingly harder to find. So any in-lieu fees that are collected tend to be spent on maintenance (rather than park development) before the 5 year time limit would force a refund. The end result is that the city slowly falls further and further behind the ratio of parkland the General Plan deems necessary for residential quality of life. My recommended action would require the city to spend park in-lieu fees on park development as long as the current parks ratio is below the ratio required by the General Plan. In recognition that park development may take some time in a city that is nearing build-out, my proposal also stops the 5-year refund clock from ticking during parkland deficits. This will allow the city to bank collected fees until,the cumulative amount is enough to develop new parkland. Huntington Beach was once progressive about requiring sufficient parkland to ensure good residential quality of life. My proposal will help us to end the parks deficit and to make sure that we stay on track as the city grows in the future. Attachment(s)• ® August 9, 2009 DTSP DFIR comment letter re parks acreage -2- 12/22/2009 7:34 PM August 9, 2009 City of Huntington Beach Planning Department ATTN: Jennifer Villasenor 2000 Main St. Huntington Beach, CA 92648 Re: Downtown Specific Plan DEIR No. 08-001 park acreage accuracy Dear Ms. Villasenor, The General Plan requires 5 acres of parks (including beaches) per every 1,000 Huntington Beach residents as referred to on page 4-170 of the DEIR. According to the General Plan on page III-RCS-6 at http://www.surfcity- hb.org/files/users/planning/recreation element.pdf,the city's total cumulative park acreage in 1992 exceeded the 5 acres per 1,000 people standard by 49 acres. But according to the DEIR page 4-170, in 2009 the city now falls short of the standard by 10 acres. The shortfall may be considerably greater than 10 acres. Recently I spot-checked some of the park acreage figures at http://www.surfcity-hb.org/Residents/parks_facilities/parks/index.cfm against city-supplied GIS parks layer data and manual Google Earth area measurements. I only checked a handful of the larger parks, and most of them have actual acreages less than what is reported on the city web page. For example, see attached Exhibit A for a Google Earth Pro screenshot of Greer Park. The city web site says 15 acres, but the other data tell a different story. The yellow boundary line and white shape attributes come from the official city GIS parks layer. According to the GIS data, the two parcels that comprise Greer Park total to a little over 11 acres. But look closer. The north Greer parcel actually extends to the centerline of McFadden, Melbourne, Yorkshire, and Brunswick streets. That street acreage comes to approximately 0.65 acres. So the usable recreational acreage of Greer Park is more like 10.35 acres,NOT the 15 acres on the web site. Note that the web site acreage is about 45% greater than the usable acreage. The web site acreage figures are demonstrably incorrect and this strongly suggests that both the page 4-170 DEIR park acreage total of 100 1.16 acres and the 10 acre shortfall amount are also incorrect. I would like to see the response to comments section of the DTSP Final EIR provide the following information: 1. An itemized list of all parks and beaches in the city and the individual acreages for each location verified against city or independent GIS data(i.e. Google Earth or any other GIS tool)that only counts usable recreational space and which excludes parcel acreage extending into public streets. The current city-wide park shortfall should be computed against this acreage total. 2. DEIR page 4-170 asserts without substantiation that"The City has met park requirements within the DTSP". Please provide an itemized list of the park/beach acreage being claimed for the DTSP area, as well as the current population of the DTSP area. DEI R Section 4.9(Population and Housing) only gives the anticipated DTSP population increase,not the current base population. Sincerely, .EJ Mark D. Bixby 17451 Hillgate Ln Huntington Beach, CA 92649-4707 714-625-0876 mark@bixby.org Attachment: Exhibit A—Greer Park acreage measurements Exhibit A — Greer Park " Greer Acres-11.0737 ddfcss=6900 fAc.Fadden=sre GISSymbol Nm-Greg .. . Shape_area=48254E Shape ten=4269.5 Ow w, b 3. �a � 3 yyI f i �i ate. ��z �"��3"✓ 4 ^, � i�� i �IlVlli„i�1���y REQUEST FOR CHARIER REVIEW COMMISSION ACTION MEETING DATE(S): 0I/05/2010 SUBMITTED TO: HB Charter Review Commission SUBMITTED BY: Mark D. Bixby, Charter Review Commissioner SUBJECT: City-owned tidelands Statement of Issue: City-owned tidelands provide important, valuable public benefits and should be subject to protections similar to Measure C. Recommended Action: Motion to: Add Huntington Beach charter section(s) as follows: It shall be unlawful to grant, sell, convey, alienate, transfer or otherwise dispose of, except as herein provided, any part of or any interest in tidelands, or submerged lands thereto belonging, owned, controlled, possessed, held or hereafter acquired by the City; provided that grants of such lands may be made to the State of California, or to the United States of America, for public purposes, when authorized by a majority vote of the qualified voters of the City, voting upon the question of authorizing any such grant at an election. The Council may lease tidelands or submerged lands belonging, owned, controlled, possessed, held or hereafter acquired by the City for public recreational purposes for a term not exceeding ten (10) years. The Council may lease such property for any other purpose and for such term as it deems reasonable if the proposed lease provisions are approved by a majority vote of electors voting thereon. - 1 - 12/22/2009 7:44 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/2010 Analysis: The city owns various tideland parcels in Huntington Harbour. Most of these parcels are located adjacent to Sunset Beach as shown from city GIS data imported into Google Earth: i 77 F' � y � i F t •, ,- ., - -: .. .p, " +gay � g 3 �n 4 S a � r' � M —2— 12/22/2009 7:44 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/2010 And there are two additional city-owned tideland parcels in the vicinity of the Huntington Harbour Yacht Club: � f v. a ar r a• "There are three additional city-owned parcels in the harbor (Seabridge Park/Beach, Humboldt Beach, Davenport Beach) that extend into tidelands (maps omitted from this proposal for brevity). The first paragraph of my recommended action is a modified subset of Long Beach charter section 1207(a), and the second paragraph a modified version of Ventura charter section 1301. -3 - 12/22/2009 7:44 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/2010 Note that my proposal does not conflict with Measure C for the park/beach parcels. Measure C would apply to dry land and the beach, and my proposal would apply to the tidelands.and submerged lands beyond the beach. My proposal also does not conflict with the Huntington Harbour Yacht Club. The yacht club contract approved by the city council on July 20, 2009, leases the city- owned docks to the club, not the tidelands themselves. There was some brief discussion at a previous charter commission meeting about whether the residential docks in the city-owned tideland parcels constituted illegal encroachment. Further research I have conducted since then suggests that these docks are not encroachments but rather deed conditions from when the tidelands were conveyed to the city. For example, consider the Tract 4677 map for Gilbert Island (attached). Lots A, B, C, and D are designated "City of Huntington Beach Channel". These lots were deeded to the city (see attached deed) and accepted at the December 17, 1962 city council meeting. As the deed notes, easements and rights of way have been reserved for constructing, maintaining, and using docks and related structures. Thus none of the docks you see on the Tract 4677 city-owned parcels are illegal encroachments. The same situation applies for the Admiralty Island Tract 4499. Lots B and C on the tract map (attached) were deeded to the city (see attached deed) and accepted at the June 4, 1962 city council meeting. As this deed notes, easements and rights of way have been reserved for constructing, maintaining, and using docks and related structures. Thus none of the docks you see on the Tract 4499 city-owned parcels are illegal encroachments. The main city-owned tideland parcel fronting the yacht club also fronts some adjacent residential properties with docks. As of this writing I have not yet been able to obtain either a tract map or a deed that references this parcel. If any illegal encroachments are present on these city-owned parcels, my proposal does not obligate the city to take action regarding the encroachments. My proposal would however prevent the city from selling the parcels to the encroachers, as well as to require a public vote if the tidelands were to be leased to the encroachers. -4- 12/22/2009 7:44 PM REQUEST FOR CHARTER REVIEW COMMISSION ACTION MEETING DATE(S): 01/05/2010 City-owned tidelands are valuable recreational (and habitat) resources. I urge the commission to approve my recommended protections. References: • Long Beach charter section 1207(a) - http:/;Iibrar 2.IIIU ni code.colll/default- test,` ocVie",,-/16854!1'19�-FOC.8 • Ventura charter section 1301 - littp: iNN'NN'Xv,citvofventura.liet,i ilesicit\, nia.na�er;city clerk;'resources/cit��cha rte Attachment(s)• I recognize that these tract maps will be impossible to read without a powerful magnifying glass when printed on 8.5 x 11 paper. Therefore the reader is encouraged to view this document in electronic form in the agenda packet posted on the city web site at http://www.surfcit�L- hb.org/government/boards commissions/charter review commission.cfm. • Tract 4677 map (Gilbert Island) • Tract 4677 deed for city parcels • Tract 4499 map (Admiralty Island) • Tract 4499 deed for city parcels -5 - 12/22/2009 7:44 PM �ssi�4 - - - - SHEET I OF 5 SHEETS TRACT O A8` 77 IN THE CiTY OF HU+NTINGTON BEACH Etw� COUNTY OF ORANGE, CALIFORNIA . . SCALE 1"=5d BEING A SUBDIVISION OF A PORTION OF FRACTIONAL SECTION 110 RESIDENTIAL LOTS 19,TOWNSHIP 5 SOUTH RANGE 11 WEST. AS PER M- M- 51 - 13. 26.169 ACRES RECORDS OF COUNTY OF ORANGE, CALIFORNIA. �. JOHN T. GUTHRIE R-C-E. 8348 Pat JULY, 1962 We The undersigned,being all parties having ong record title interest in the j,John T 6uthrie,hereby certify that I om a Reyistered Civil Engineer land covered by this map da hereby consent to the preporotfon and recordation Ala 8348 of the state of California,and that this map consisf n;of 5 of said map os shown with,,the b/ue colored borer A-and we harehy offer sheets orrecf/y represents a true and complete survey made under my for dedication(/f To the pub/ic use for street purposes Channel Lane Gi/brit dfrecfion /962,'fhoi the monuments are of the character under y Drive,Somerset Lane,Peale Lane,Malden Circ%MeMlle LSrcle,Mariana Circle and We/big- the position i_d._,d or w"beset in position within Two years from t e, ton Drive 5Ta the C4 ofhfmbegfon Beach the vehica/ar access rights fr m Loh M fo 94 dote afrecordm and that said monuments are sufficient in enable The sur- along the perimeter of Somerset lane and Loh 96 fo 106 along the perimeter of Peale Lane,Die vey fo be retraced. 5'easementin Lot 14 for wakrpurposes,the 5'easemenh in Lots 30 and 57fwstorm drain purposes,the 5'easemed in Lol 07 for sewer purposes,Ike domestic water and sewer systems l / together with their appurtenances as shown on the rmp�ow nip/vns,and the sabsurfaw wafer - Registered Civil Engineer No 8348 rights. Huun ntington Horbouur Corporation �/y 0 &"-a' 1 / r�" - / .i I,James R-Wheeler City Engineer of the City of Huntington Beach, California, LW Douglas .,Presi ent George Fk eft eAss f Sec ary do hereby certify that I have examined this map and have found it to besub- stantially the some as the tentative map as filed, amended and approved by i the Huntington Beach Ptanniog Commission,'that a//provisions of the Subdi- vision Mop Act and City Subdivision Regulations hove been complied with and State of California I am sofisfred said map is technically correct. _ County of Orange 5 S. �{ On this�edoy of-V- —,1962, before mew. '//,�,D'ruo�yalloforyPublie Dated this—cloy af,2L�1962 _ in and for said County and State,persona!/y appeared LW Dauylnc Jr, City Engineer - known to me to be the President,and-ben o�;"known to me fo be the L/ Ass't.Secretary of Huntington Harbour Corporation,the corporation that ex- ecuted the within instrument and known to me to be the persons who executed . the within instrument on behalf of said corporation Mario named,and acknow- State of Ca'-f,n/a l /edged fo me that such corporation executed the same. County of Orange I,L.A Wallace, County Clerk of Orange County,do hereby certify to the My Commission expire Je'-�� County Recorder of Orange County that the provisions of the Subdivision d Notary Public in and for CosAnyeles Map Act have been complied with regarding deposits to secure payment of County,California taxes and special assessments on the land covered by this map. Dated this-today of-A,407t962. A3 6'CfrctQr'41- County Clerk State of California l� D2 azz County ofOronge SS City of Huntington Beach Deputy I,Paul C.Jones,City Clerk of said City of Huntington Beach,do hereby cer- tify that this mop was presented for approval,to the City Council ofsoid City " of Huntington Beach of a regular meeting thereof held on the/l rz day of I,W.C Warne, Planning Director of the City of Huntington Beach,California, 1. .1962,and that thereupon said Council dr'd,by an order duly passed- do hereby certify that I have exa-ined this mop and hove found if to be A& " an entered,approve said map and did accept on behalf of the Public the stantially the some as the tentative mop as filed,amended and approved by offer for dedication (1)To the public use for street purposes Channel Lane,0- the Huntington Beach Planning Commission. bed Drive Savursd Lme/tale L-e,.Nal&v Crde,Rdlvil/e Gide,L/ariana Crck arid*111iagtm O ire (ZJTo 0,Cify�Hunfingt n&a h the e*aah,access righh from LolsBnLofrhhrrof h90 ,kwnreiLmewdlah 5.rbO6almyhe/rrmeteraffaleLae,- emetng /4n Dated this,4 doy-&AJ-_1962- purpues,65a5eesenenisintot,;7ard57hYsf rmdrainprrq es 1he3'wv entin LaT/07fa'sewrr - Plonnino Director parposr,ibeabmestic waJrraadsmet-systems feydberwifb WWralpaHenames ss s6owaar the F of the City of Huntington Beach rmpivveYnentp/ans,aa✓the su6surfsee waferrighis. ` Dated fhisty-ctday of T�y 1962-. City Clerk State of California s-s of the City of Huntington Beach County of Orange By r15' f , a---Z- I,Don S d4azley, County Tax Collector and Redemption Officer ofsoid County Drpufy of Orange,do hereby certify thataccording to the records ofmy office there Signature Omissions: are no hens against the land shown on this mop or any part thereof for unpaid The 5ignofure of California Bonk,Trustee,ancf others,owners of State,County or City taxes or special assessments collected for taxes,except Subsurface minern/ri9his as r11 co,in Baok 5456,a gr 4/0,or taxes and special assessments collected as taxes not yet due and payable. OFficio/,Qecords aF Orange County,Was a/nitted pursuant to , 5ection /1587 of the Business and Professions Code- tw Manurrren/Notes: Dated this�.�cloy ofT l962. no- S Mez - County"Tax Co/%cfor and and z All 2.1.P shown os 5e1 are l2"below ground surface;Fitted will, Redemption Officer concret,beor arela/tags sfa_pe, RCE6340,w fh meta/cover of f%nished saWace. By- W I C.�naea.((e.Q¢/ Z.Al/leaded tacky shown as et in bu/khead wo//are se/0 40 Ft in Deputy ' f om bu/khead hr-. - 3 /" LPs filled with concrete and bearing 14tal toys stomp d R6e amined d a fo,..wA.� 1962. 8348 btp-setord/lot cornerr e ccpf where cnrne/s Fa//on bu/khead and on this/ day o" 2K fine-in,sacfr cos s the/at hie bos reaeed tack Ind on to of adjacent bulkhead wail - 4- 0.t F.s .vir/be set r2•below ground soiFace,1,Aed with concrete, - Deputy County Surveyor boar metal toys stamped Rc.E834awithrneta/toyer of fiWZ Y _-- - SurFace at all centerli—i�icrsect4—,z>ylnn:rq arsdendirrg-bf Carves,>rminafiarr of strEef,un�ss'"1h rW S""noted.sk'*h-o' of Beorinas:- 11-ir ties w.%/fr turn/shed ro the City arise rior to the• - Icce Conte or the sfjn-t in vemen{s. p - rfre Bearingq N60�Q4-4¢E of the Southeosfer/y Litre P r �" of Lofs 727076, inclusive,-in Trocf 4099,"M.M./6/ //-15 i-1, - was used as the ham fs of beai:ngs far this m p SCALE: i"=1001 01"GNM SHEET 2 OF 5 SHEETS T RAC T N @ 7 7 IN THE CITY OF HUNTINGTON BEACH, CALIFORNIA - : INDEXEL BOUNDARY SURVEY & INDEX TO MAP SHEETS of t► / v. / �l JOHN T. GUTHRIE R.C.E 8348 - il+ ir / �� / ��� • �`�L— ��/ �) �{tea See Sheet No/ fo/Monomenf ! \`� T l ! y on Roth Chanfleonne/ so y z as 33 1 /-'� .t-•. `L ,y�y/ �\ tali 48 a 1 47 46 OCA 3j 45 lz as s\Q a^ L SHEET 5 J zz 96 43 `o�yo _� 60 94 k3 42. elLa o x O 9 J 41 93 63 40 z 92 39 63 /VG 91 eB < TO4, e> /00 9O 37 69 x zr56-za-w auzl• ` / 3 / \�`\ �—s—� O2 V 110 W ee 35 103 T > a=z aoa SHEET 4 L•l9 az J 7 �f ro as.E I z'-'\ /04 109 O 33 86 1.7 108 W 32 0 W 5 h Cg.s )q •c �' 85 W z SHEET sul N 3 2 1 ¢ -n 78 7g 80 81 - 82 8D 84. N Al 30 O e Q xa GILBERT •\ DRIVE 29 8 s 10 11 12 13 µ IS 16 17 le 19 20 21 22 23 24 28 9 25 26 27 C "3saax9^e 15za G 9�Nunfi onA4xhChonne/ sy cd-V,,x,ng w7 Bench Ch pve/ flOY Of CO/ifo�nio lhonx/ SHEET 3 OF 5 SHE ORIGINAL •- SCALE=1••=5d - �----7� T T N@ IN THE CITY OF HUNTINGTON BEAGH, GALIFORNIA al�xED JOHN T. GUTHRIE R.C.E. 8348 vies JULY, 1962 _ way; See ShecF Na/Foi Morwment and Bari of Beari�Nofrs- Fd Z-✓P.,RCE 8348 Per T-a4499 0 v� i0. 2 o N47-f6.6- q:nO• ./Ye %y 1 ::.y Oiy . `` -- ��` gig• F �'6a. ::�. _ ..I � �` ry��\ 30• o'a yo' '- i } 4 � o oo, :E o o•� � Nal•r6• �aW N V 00_ �3 a H�•3L4fif 320o N 36E 30. 30• oo• 17a z9. agy9s•o<yg*r f' �\`- ae L•44.89` e a T:M 00' (V jam`) '1T9i' 60.69• ,^ T.1220- N \ 6Tea ry Q a L=zz-zo• Query ( 77 zo. o z34.3z 811s r a £ o GILBERT 61'4'' Q s- rs�46of, ._�57.44'z9•E a - 99.�5' T19.47' �b C C.6p4j•.4)•0° r� w\ p �N •44.29'E �7.56' - N7 DRT9I ?o F,��_Q32� tl6 4a0P Pa"f O 8 3 6L5N Moo, o 3 a 0 6&00' 6:.00' 0.4d ___ g -- a O �� 60.00• 55.00• _0 10P. 11 _q 12 A.Z3.35'41 q� _'_� T-mTr �00 a=n6 ea1 13 $ - p L.T.za• sfy Elm w.;„Mau T 15.so• ^ a•so.00'S-� — 14 IS E•21a4' 2 T•a0.65' 16 6&z• 66.99' E•ro1.5a• o(.low 316• I^ _ z 500'EgSFMENT+i 263;k2' 3T-�' (lowI 60A0• 55.00 \Ci}y o}'yun}inyton BCo/,�bann</ �- N.3'4e'r9e 15z°.34.: S/o%r of Co//Fornio Cbannc/. f�i/17 SCALE- l 50' COMNAL SHEET 4 OF 5 SHEETS TFR1 ACT N@ 487 7 13414 IDLTHE CITY OF HUNTINGTON BEACH, CALIFORNIA pCCkPikO ANO P1kEY gEp-$B ili41 /,- 9/L40. JOHN T. GUTHRIE R.C_E. 8346 ii -4as. JULY,I 1962 See �'y/ \ghee! —� See Sncr3 M./F Monument - and Cnru a`Beoim9 Nobs. / :;= // o •:). / Z I ' o {, ' \ s o ~6O o m h o• f / ? 40 6 ?y uz•oo•oo'E 4 zS• o ~ - N MG.- p• ' 41 a 3 �5, �5• hh `CJ.20 00.�.GOC 9 _ 6 g5 '99 39 T,b } o- hh ry J 13'. 4. 23. tz.8' a Soo°;a<,e/yGj Q T sl d 38 2� p R•30_ - °" ���/?",Y _ L-20.5e• 140.55' °T•7p 00• �• - sj e<.20.�.00. �� N35'oB•Zd=['goL- -- 3/-Po 00 ° v2. /00 k600 CTboo°oo: �ER�:_90 s 37 0 0 - ce m ,^� Iis o f 3Cazo-°0 <C/ N v N2.25' Z. z o o / CJ o 010.03' a h - CJ v.a40nv rYa $gyp m 3 0 r 89 o ° 36 /h0� Oo /Q ® -10 - -:y o c•35.5r z5' z3• a 88 35 ai NO oOo0 a-f /03 W o y u � 11.00' m d �� o v ,''00, o° 2•` N •44'2•E 128.I4' 87 34 ,S \\ / O '�3 644•E.�U•`. `O-h��� � N '44'2•E 162.90• 9 W Il.°°'�' Z o \/ /03 c •aj. " - 23• 25• q e'86 1 33 09 / tRaao�o 6' / -N32• r0o+ zy.G6.6• &.47 law 1� V -32•E 4• — R=40'00. \ ` Q. N4I.02'Sq•E _ROl„ / �. 107 - L=2y yq• =0.t6'N29'Oo'00'E y// Q!V og 99.g• 1`// _ _ 108c` im.45' 32 9 14 e 85 N60• E F� j�' ap_'� 5943• 6.0 2.7'N 41.E�.� a. R.q •� N3S4c ,' Sr.iY 0 f - Io 4•f �0.3�`10�50^ 5-00' Z9•E 62,00 �,. = I'— i.a3oo ••e oo a y,�^• a e.�. W U) 31 e•116-u.15. -- 78 '`� o8O - al 82. O 39 83 f;.gO 84 1 70.O1' o•�. A•94'44'29, 5600' R'3o.°5y0' 3O 99.00' 5Eo0' L-49 bt•i--- �n 6200• 54e-95' 57.00' lib.00• 1 - --- - GILBERT 3i.ae• ' uz9•oo'oo-E ,0032' oaoo' DRIVE - - m Sono• — 29 040 m ° 50.00•h 50.00' 55.00 Sze-o• „Q .v•%~ set.Eeoew roc 3 55.00• 5500' 6000• e•9?', n'I N�o —U 3 •_ - 17 18 19 20 �1 3 z a G r'2 2!•E 22 P3 04 26 27 Soon' S0-00. J£ •f - Snoo' 55.00• ''po 55.00• 55.00• 6ulkhea4 Line 60'OO• 65.00• 1'46 eAov LQT°N 33.4s 29•E 1520.34' - ,e.35 66,00' 94•� t `. i - _. - •Z91 ` C ewe.Y Sta1r of Cp/i£o�nio Cl—el sei 4aaee r - __ Cif of H nfin9lon P ach ry aP ut too/As SHEET 5 OF 5 SHEETS - - SCALE! 1°=50' TRACT N 487 O7 IN THE CITY OF HUNTINGTON BEACH, CALIFORNIA JOHN t 6UTHRIE R-G.E" 6348 41.NND0%-' Awd pass JULY, 1962 > t► doses oerae4>� r 9Y97ltli�Ae�,GotnwT 9 ry�LOT D - Sep Sheet No/Po,Monument N �d'ynn/%ng}an 6 fi Ond BQS/S Of��r/!AJ/VOfPS. � nn[/. ��16'R•6a00'Tas . 0.4d pop' Tra RCE Leaded Tack wish teg ` ((e 8348 in Wolf per Trot 4499_ ¢ /'SCT Lca ll w•N+r:x+er b9RCE in.Wall- S/ $o i ReoO a s�"'x R c5 0• G6 N 17-0 G"E 0 46.2V �S N35•Zz RDL. ? a=a l ` ow N6o• - 6• _�49 ooB4 � �3 z3' - J U �:' S3 s� N29•oao0'E for"9' a 48 3 — .\\ 4 y z rCL-_ NSj53 oa- (7pjr _ 23, `3 — o e 47 0 (� 6SS RoC. 2 �q -yam S6 (•�z .^�_° � _ - �y� �'46 3 �3 o WS 9F ee: G`5Jt N ST45 \ 95�Te R'xioo r/ osE� v � ,5'8 v 25•S N26'{I'S4_E RDL._ Y 44 0 Q. 5 o Sg Ao°, zz•E r ul ors. Z o0 00 p .O7' Q o J a- h3 60 86 p oo K 0 0 94 m No 42 o �� •h pryo !.s m O S - N29°W'WE'RUL. � 2 9T 41 6`3 / N6o•a 93 err N rooGa � O 4 See ifs'. fl Sheef t { .. F 7'Jq en Recorded Mail To: ty Clerk, F. 0. Box 190 p' kk [.00 geORDED Al REQUEST OF tin ton Beach California JL5-t&3 f �xuxntt m g t N OFFICIAL ECORDS OF � ` ORANGE COUNTY, CALIF. v` ri ��T� " DEC 19 1962 �V CORPORATION GRANT DEED ^f: �v 1-71,r, i"v ro ct `t� ti RtlBY WFARtANI1 County Recorder FOR VALUABLE CONSIDERATION, receipt of which is hereby FRE p. acknowledged, HUNTINGTON HARBOUR CORPORATION, a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, hereby grants tothe City of Huntington Beach in the County of Orange, State of California all of its right, title and interest in and to that certain real property (hereinafter referred to as "said real property") situated in the County of Orange and described and shown as Lots A, B, C and .D on that certain final map for Tract 4677 in the City of Huntington Beach recorded September 20, 1962 i.n. Book.168 at Pages 14-18, inclusive, .of the Miscellaneous Map Records of the County Recorder, Orange County, California, for use only as a public and navigable channel,. and : no other purpose whatsoever, together with all of Grantor's right, title and interest in and to bulkheads located within bridge and right of way lines shown on said final map. EXCEPTING AND RESERVING, however, unto Grantor, its successors and assigns, easements- and rights-of-way in, over., across, upon and through that portion of said real property shown in hatching on the plat of said Tract 4677 appended. hereto as Exhibit A, which Exhibit is by this reference incorporated herein for all.purposes, for the purpose of constructing, maintaining and using without rental by the City of Huntington Beach the same for . docks, wharves, slips, ramps, floats and other mooring structures, and for footings,,, pilings and ancillary 'atsuctures:far bulkheads located on adjacent property of Grantor.. The easements and rights- of-way herein excepted and :reserved shall be severable by Grantor and shall within such boundaries as shall be designated by Grantor 1.' r-- - in writing and recorded in the Official Records of Orange County, California be appurtenant to and run with the ownership of the . : O� lot to which the same is adjacent. - O3 This Grant is made subject to the followings (1) General and special county taxes and city taxes, CA if any, for the fiscal ,year 1962-1963; (2) Limitations, covenants, restrictions, reservations, encumbrances, easements, conditions, rights, rights-of-way, excep- tions and other matters of record; and (3) Limitations, covenants, conditions, restrictions, reservations, exceptions and terms affecting said real property set forth in that certain declaration dated October 5, 1962 and: . recorded in the. Official Records of Orange County, California on October 9, 1962, the provisions of which are by this reference incorporated herein as though set forth in full. Said City of Huntington Beach by its acceptance. of this deed agrees to be bound by and take title subject to all of the provisions hereof, but reserves all of its right and privilege which it now or may hereafter have under applicable laws. to levy or impose taxes, assessments, permits and other charges against lots in. said Tract 4677 or the owners thereof for. the maintenance and control of the lands transferred to said City hereby. IN WITNESS WHEREOF, Grantor has caused its corporate name and seal to -be affixed hereto and this instrument to be executed by corporate officers thereunto duly authorized. DATEDt October 9, 1962. :HUNTINGTON CORPORATION ATTEST: .tn LY By pr ens Asiflstant. Se5tetary 2.. j s STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) :: On this OS day of Qg =, 1962, before me,. 0) the undersigned, a Notary Public in and for said County and State, personally appeared L. W. DOUGLAS, JR., known to me to be the Go President and GEORGE POTTER, JR., known to me to be the Assistant Secretary of HUNTINGTON HARBOUR CORPORATION, the corporation that executed the within instrument, known to me to be the persons who executed the within instrument pursuant to its. By-laws or a resolution of its Board of Directors. WITNESS.my hand and officia]:,eal. r u n d' or . said and S ate. MARILYN I SNYDER MY Commission Expires Aug.30,3964 STATE OF CALIFORNIA COUNTY OF ORANGE ss CITY OF HUNTINGTON BEACI3 This is to certify that the.interest in real -property conveyed by the deed or grant dated October 9, 1962 from Huntington Harbour Corporation to the City of Huntington,Beach,.,_ a pel tical corporation and/or governmental agency,. is. hereby accepted by order of the City Council -of said .City of Huntington,.Beach'on the 17th day of December 1962, a r -xand the Grantee consents to the recordation thereof by duly authorized officials. DATED: December 19, , 1962. By �Q ity C er a City � = of Huntingfon Beach. 3. 'S1l11 �� ORIGIA1 SHEET I OF 5 SHEETS T R AC T N @ (E�) W THE M Y OF G;IUN PHOTOo N BEACH H COUNTY OF ORANGEF CALOFORMA SCALE 0=s0' BEING A SUBDIVISION OF PORTION OF THE WESTERLY- ONE-HALF OF A 76 RESIDENTIAL LOTS FRACTIONAL SECTION 19,TOWNSHIP 5 SOUTH,.RANGE 11 WEST, AS PER M.M. 3D.674 ACRES - 51-13,RECORDS OF COUNTY OF ORANGE.CALIFORNIA. - JOHN T GUTHRIE R.C.E. 8348 FEBRUARY,1962 We the undersigned,being all parties having any record title interest in the land- I,John T.Guthrie,hereby certify that I am a Registered Civil Engineer No.8348 covered by this map do hereby consent to the preparation and recordation of of the State of California,and that this map consisting of 5 sheets correctly said map as shown within the blue colored border line and we hereby offer,for represents a true and complete survey made under mg direction February 1962; dedication (1)To the public use for street purposes Admiralty Drive Channel that the monuments r of the character and occupy the positions indicated or Lane, bounty Circle, Devon Circle, Easter Circle and Falkland will be set inpositionwithin two years from the date of recording and that said Circle (2)To the City of Huntington Beach the 5'storm drain easement in monuments are sufficient to enable the survey to be retraced. Lot 8,the domestic water and sewer systems together with their appurtenances as shown on the improvement plans,and the subsurface water rights. Registered Civil Engineer No 8348 Hu i gton Harbour Corporation . /i- I,James R.Wheeler,City Engineer of the City of Huntington Beach,California,do L.W.Douglas Jn,Pr. ent George Potter,Ass't.Secreta y hereby certify that I have examined this map and have found it to be substant- ially the same as the tentative map as filed,amended and approved by the Hunting- -ton Beach Planning Commission; that all provisions of the Subdivision Map Act State of California and City Subdivision Regulations have been complied with and I am satisfied said County of Orange �} map is technically correct. On Public in and r llaiti 1 ,1962;before er rnnn r ya Notary' Dated this/6day of e 1 196Z. ( 1-- Public in and for said County and State,personally ppeared rfy Engineer known to me io be the President,and�eorga_potivr,known tome to be the Ass't - Secretary of Huntington Harbor Corporation,the corporation that executed the within instrument and known to me to be the persons o executed the with- State of California in instrument on behalf of said corporation therein n - ,an nowledged County of Orange. to me that such corporation executed the sa I,L.B.Wallace, County Clerk of Orange County,do hereby cerfify to the County Recorder of Orange County that the provisions of the Subdivision Map Act have My commission expires Aver 3o• 19 Notar ublie -L-os- Nu les been complied with regarding deposits to secure payment of taxes and special Coynty,CahFb—rnia assessments on the land covered by this map. Marilyn'd�Snyder - - - p _- State of California Dated fhisLday of 1962- f+ .C3 � County of Orange County Clerk;;. City of Huntington Beach By pap� aG1`Cl . __ �tT I,Paul C.Jones,City Clerk of said City of Huntington Beach,do hereby certify y that this map was presented for approval to the City Council of said City of - -- Huntington Beach at a regular meeting thereof held on the/A�,Yday of Aver.e I, W.C.Warner,Planning Director of the City of Huntington Beach,California,do _ WGF,and that thereupon said Council did,bg an order duly passed and e'ti4tered, hereby certify that I have examined this map and have found it to be substantially approve said map and did accept on behalf of the Public the offer for dedication the same as the tentative map as filed,amended,and approved bg the Huntington (1)To the public use for street purposes Admiralty Drive,Channel Lane,Bounty Beach Planning Commission. Circle, Devon Circle, Easter Circle and -Falkland Circle(2)To the City of Huntington Beach the 5'storm drain easement in Lot 8,the domestic water and sewer systems together with their appurtenances as shown on the Dated thisleday off,/ 1962. improvement plans,and the subsurface water rights. Planning Director of the City of Huntington Beach Dated this_L76day of Amut-1962. City Clerk - Slate of California - of the City of Huntington Beach County of Orange I,Don S-Mozley, County Tax Collector and Redemption Officer of said County of Orange,do hereby certify that according to the records of my office there are no liens against the land shown on this map or any part thereof for unpaid State, County or CitU taxes or special assessments collected for taxes,except" tayeg a..d sp—C. assessments coliecfed ag taxes no+ ye+ out a..d PaJ able, Dated this10Aag of-A brit 196Z- Don 5.onozaJ=� County Tax Collector and Redemption Officer Deputy Examined and approved on this3L.day of _f G196Z. Deputy County Surveyor .Basis of Bearings: The hearing of N.42'43'24°W.for the northeasterly line of Block 415 per map of Tract No.21,M.M.9-22 as per Record of Survey 55-44 was used as the -basis of bearings for this map. All Z I.P.s shown as set are IZ'below ground surface;fitted with concrete and bear metal tags stamped R.C-E.8348. I`I.P.s filled with concrete and bearing metal tags.stamped R.C.E.8348 to be set at all lot corners except where corners fall i:r the water.In such cases the Lot line is chiseled marked on top of adjacent bulkhead wall. Centerline monuments will be set as noted and sketches of their ties will be furnished to the City Engineer's office prior to the acceptance of the street improvements- �w Tea oo�b„tua�naa o 8413 H \ 0 9 °H\asun 0 h\a W C h\ —�L -aid la 4fQ\ pa9Uo\6u\u°H}0 �— r 1 1 y1 yeti q.56' ,o�." P H — S M.cS Wvi Il 1�N 3 y'a r�� yyLL �T��a�N� `.. M4b,44.1tlN ;.'oo 00-07 e'o�Rf7j4B,j, a z < CE O r �" -'(T l4'669 N a \W a 96j a's. o i...---.... Q a ad 09'66e) o �\ \ ` \ (VV•65.S1 N3 +~a�°4ai,v w p ro A I N 01 J m 4G O QD 7VA �i z a Z nLANEA P�U 'Y��' •ef'. W�' N m O Z O Om c�Q' qrn N P 0 N N w g fit v O� H 4i'36'il'W 0314' _ A 4� J m m W CHANNEL -0 Z A e a p � w x y I w o D ^o r 4n °m w C1 01 � � lS 2J u v W A 4.'1 m I N ~ U1 N J ca < r = e J (l A r I r r m m J m m I N m m ro �, N q I rn m N W W O V N N J N o I G Y s5 O O . ep0 Ni N3 � S o � D - "6'49')I'wN Ilee0' See Sheet 3 N � See Sheet 4 4�- • iV O See Sheet B •a.1 '� F+ 1 x N ni oz m N �nN D •a 40•o' 4'.b O2,d' r G W(^ 7n o o`• LOT n Bn I Q m (➢ v n co•oe u's Sm °08• I NA_ o LOT „A„ Q` 'o 0. LOT uCn 0 a1`000' � ' �0 °6 p'eY�, e4.00 Ge.00' Go,00 d6 .o0 40.00' 99.00' G4.Oo' +°➢ " V V I; 3f.5o' 19.Ow 97.lP-°______ d1` c� �1•� e i S gyp.2c4't0�•ya0 9'd 4G V l! de• 1 3d.00' 40.00' 0.00' 44.9 - d2c, tl�4•fp Ifd.9!' rzp \\� r v BOUNTY CIRCLE p4 °nIZ{°p '1_'_-'y1 L ' N 3e'o Q • 1G1.9f /// ybn 63.eG,E 404 Z 4,Jn ,.�10.00' 40.Oo' GO.00' 21.97' Z H 4>la-9d':E.RDL_ i Z 09 x�1 9° N N4 fi"IOQe3 _. Jw ➢ I o/= °S•., r, fT11� a Z: 01.e !p"➢g ' g d N SP/ro N A� (cj�J 2 2B1g .—'_K=B, z 00 Ip� 40.00' 01,00' A VI o r V t �, r �� °8 =p N o io,eo' 090.0o u co•oe'44•b v94,00' r N m �—�J O t° �� oo D o•oe'm's O CS co Qu 00 8 m - � m s ,aD.°°• � !t Ste, y 0 90.00' N G'00'dd"b 294.00' 11 8. 2 sa,00' oe.o9' show lol.o0 4e.m' ^+c➢ VVV moo' m v IN D xg. W ,3,0, ffir N u W (]" P.. . Q W ,C. /h" W O 1 O $ O1 osg ao t °i a g > v Oo°f yn a u oro w•G a o' �.�°r, ° uo o9'avE 190.00 do.00' I - $�?. .c C`4 c+" � �• '>. e p ADMIRALTY ° o px lab pRw x N w•oa.ze.00' ° o• DRIVE. RW Llu r yo2 .!— •' .N o•oe'da a o a49.9z' O w w ° w, to .y }a t/ w ►f' H.Fc• � \ �� I 7 I\ o P@@ Z N 2_?gt➢ c oe snot l9o.P' - �� / i i it I ,��`^_�`•• ➢4 , 6.�1 3DT '\ 1A m 9 rap I 90' 30- -------- ri ,.��. I I r}, m osa I i alo' I, m '1 `E SHEET 4 , • $ S E � , -- 16 1/ 14 SHEET 4 OF 5 SHEETS scALE �"=5O ORIGINAL N O a a T " _ THE CHTY OF MMMTaNGTOM [CACHE C�I°�i�Q��G3M�Q786,� JOHN T. 6UTHRIE R.C.E- 6348 ACCEF-IED AND FILED FEBRUARYR 1962 MAY_34.8 I!T X-jg,Pg C oanrlG�€F7tni ROE st�s tivEnnRAe>q.r—y _ssr $13.OD --------------- BASIS OF BEARfNG: LNE o. k<x•«x<-w Foo ,u� roa.ucns,ERi ai°u ms,iRn�r uo.v,uu's-zz es ace � - v LOT "C" m q°. , o v zaa.00• �r _uz9•ri w �t2.00• ,a.o° t wo-o 49 50 ry> 3 a 48 5 ti / r c a.as 51 36 47 g,oe ,`R_29 as \��•a - �l v 29lo ioo W �.•>35.�52 23' lz I 23' 23' a Y37 z 46 —� o t-___—__W J °o.°o $ 1 Y W wo.00• z J U _ _ _ 1 ?a 5-3 1 _ ✓s r• I �° v t w 38j --------1 45 -- - r---- �, �. 1 — s ti,•5 Aff 54 L of rZo 1 "`s----------� 39 nt = a sa 44 x. m •w o �e db' 40 - 55 - 2 41 ioo.00 m oz•5z'oe' s5°° a -s5o' i•I s - _ 42 - 4 6' _ -1 Laj5.9r x�2.a9 43 e6-� - a:ie•e a o - a=ro•oio52' � �� a 2a 9y -R.3y1cQ 2j-,Y -c a o.'�e°2- - 42 o yip - az• •�'>° e�>e ��e�.�c�'rE°. rt--- 1 °°• _ Iz t 1 I rP.S55_pe b9558 (a99`O K At5 1 E °QidE w B�-OC NO- � i 1 � ao° ^e`er ago Vc�o or -(R PC'T9_22 s��VE d0' d0'I y�.�ioBAN":ioR"dR I J { 41 -E � I _ 02 a5 2 /1 Ali �.e — 161/}5 15 SCALE 1"=5d ORIGINAL SHEET 5 OF 5 SHEETS T A ='l 'E=3i a ONE iP rHi E Cuff Y OF HN N ONNGTOO Nnl o E C'H9 C AL OFOo R r(`vBA JOHN T. GUTHRIE R.C.E. B348 $7 8 6 iN FE5RUARY,1962 wccEr,F /!ND FILED WAY BASIS OF BEARINGS: �•—g N 62•. aibcK s, a",r NR-z�.uM 92¢<s ase L¢br s.R55 a^� - - 29' LOT "C" �•9-a 12.00 129.bp �3.oa Gp 80-00' loe.op 9 Z p 6 0 o�°g 61 h$"is - z•r 70 P 71 o'p of 7 2 b s e 62 69 ep°c °`<s.pp.<.q ? � 73 59 _ \ IG•25gs•nr 68 63 74 �dNi � —9.. v Y VN- d 6• .29 yz9O°51' Ic Ne G.Sa 23'I J23' °°pv _ 58 23' 23' 67 - b. ,po.op W N41 64oV� 75` I- J 66 � Y afrP Y9wow d _ cn§Ua J itJ 57 o Q a¢N-- pR.°° R`iaoa Q 76 a FN z9•st m-w 65 , xz-si�zs•w -' :z9m Ja oe-m z 23' zo or or N p an,p, 23 n m 5_oA• 4G' _ �•rr.9� Zo u �, Aa9'°p'`° e2 O 56 .Rp N¢ ✓D R:so po 9r i y i o x.w �°G io'_L' y_e5�99 LANE b �` n=n•.lpp- :'-s.x v zs9.79• _ 0 p5r K5Nn.w �¢v 9.v.fT}yy.M acG D'i.E N G3ep.00'-O, G a, Ad A i to �g5yes / ,i B1.OGK -140. o MM µw W YV _/ 3654` //116134 DACE 409 CORPORATION GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, HUNTINGTON HARBOUR CORPORATION, a corporation, duly organized and existing under and by virtue of the laws of the :hate of Delaware, hereky grants to the City of Huntington Beach, in the County of Orange, State of Califo nia, all of its right, title and interest in and to that certain real property (herein- after referred to as "said real property"), situated in the County of Orange and described and shown on Lots B and C on that certain final map for Tract 4499 in the City of Huntington Beach, dated May 3, 1962, and recorded in Book 161, at Pages 11-15, inclusive, of the Miscellaneous Map Records of the County Recorder, Orange County, California, for use only as a public and navigable channel and for no other purpose whatsoever, together with all of Grantor s right, title and interest in and to bulkheads located within bridge and right of way lines shown on said final map. EXCEPTING AND RESERVING, however, unto Grantor, its succ- essors and assigns, easements and rights of way in, over, across, upon and through that portion of said real property shown in hatching on the plat of said Tract 4499 appended hereto as Exhibit A. which Exhibit is by this reference incorporated herein for all purposes, for the purpose of constructing, maintaining and using without rental by said City of Huntington Beach the same for dooks, wharves, slips, ramps, floats and other mooring structures, and for footings, pilings and ancillary structures for bulkheads lo- cated on adjacent property of Grantor. The easements and rights of way herein excepted and reserved shall be severable by Grantor and shall within such boundaries as shall be designated by Grantor in writing and recorded in the Official Records of Orange County, California, be appurtenant to and run with the ownership of the 1. lot to which the same is adjaoent. �00K6134 PA.Aio This Grant is made subject to the following: (1) General and special county taxes and city taxes, if any, for the fiscal year 1962-1963; (2) Limitations, covenants, restrictions, reservations, encumbrances, easements,, conditions, rights, rights of way, ex- ceptions and other matters of record; and (3) Limitations, covenants, conditions, restrictions, reservations, exceptions and terms affecting said real property recorded in the Official Records of Orange County, California, con- currently herewith. Said City of Huntington Beach by its acceptance of this deed agrees to be bound by and take title subject to all of the provisions hereof, but reserves all of its rights and privileges which now has or may hereafter have under applicable laws to levy or impose taxes, assessments, permits and other charges against the lots in said Tract 4499, or the owners thereof, for the main- tenance and control of the lands transferred to said City hereby. IN WITNESS WHEREOF, Grantor has caused its corporated name and seal to be affixed hereto and this instrument to be executed by corporate officers thereunto duly authorized, DATED: May 29, 1962, HUNTINGTON> OUR CORPORATION, B !„. 'ATTEST: Y rest t Assistant Secretary f ` FOFFICIAL .RJ.QUEsr OF NTY TITLE CO. RECC)RDS OFUNTY CALFi 1902 ,Cnunly Rr•rorfel 1 r ' STATE OF CALIFORNIA ) ) COUNTY OF ORANGE } ss 800N6134 PACE411 CITY OF HUNTINGTON BEACH } This is to certify that the interest in real property con- veyed by the deed or grant dated May 29, 1962 from Huntington Harbour Corporation to the City of Huntington Beach, a political corporation, and/or governmental agency, is hereby accepted by order of the City Council of said City of Huntington Beach on the `�� day of 1962, by the undersigned officer or agent on behalf of said City Council pursuant to authority conferred by resolution of said City Council adopted on April 16, 1962, and the Grantee consents to the recordation thereof by duly authorized officials. DATED: May 29, 1962. ByS. City Clerk of City of Hunting on Beach, STATE OF CALIFORNIA ) ss COUNTY OF ) LOS ANGELES ) On this .� day of , .1962, before me, the under- signed, a Notary Public in and_ or said County and State, personally appeared L. W. DOUGLAS, JR. , known to me to be the President and GEORGE POTTER, JR., known to me to be the Assistant Secretary of HUNTINGTON HARBOUR CORPORATION, the corporation that executed the within instrument, known to me to be the persons who executed the within instrument pursuant to its By-Laws or a resolution of its. Board of Directors. WITNESS my hand and official seal. Notary Public in and for' ad;`; County and State',. '• N commission pires "_� n s d •f': September 14, 2009 20061 Colgate Circle Huntington Beach CA 92646 Charter Review Commission City of Huntington Beach 2000 Main St. Huntington Beach CA 92648 Subject: Section 607 (b)2 Retirement Tax Provision deletion The 1978 charter update contained an item that provided for property owners to be taxed to pay for pre-1978 retirement system benefits. Voters were unaware in 1978 that by approving the charter update they would also be taxing themselves. There are only a handful of the 470 California cities that fund the retirement system in this manner. The city estimates this tax burden will reach 26 million dollars by the year 2013. This tax obligation has been a controversial irritant to the citizens and council members for years. This is the time to bite the bullet and take care of this unfair property tax. It is recommended this obligation be funded from the general fund rather than the property tax. Thank you for your consideration of this matter. Edward Kerins � � ���\��:����������/- � � ���������q w� ��\ . .x . : �.�. �: ��\ �� . . .> ��, =�. �� y �«������«-_-- < . : _ : ��\ \ � � - �\ �` �< � ��`\ \\ \ � �{ }�d \ �\ �© 2<�" _ � ���������������_ � �������������\�\ INFORMATION SUBMITTED DV DAVID RICE 12/23/09 Page 1 of 9 PROPOSED CHARTER AMENDMENT TO REQUIRE VOTER APPROVAL OF SPECIFIED CHANGES IN ALLOWABLE LAND USE (SUMMARY) This initiative would change the City's Charter by adding new procedural requirements regarding certain land use decisions. This proposed initiative would amend the Charter to require that the voters approve what it terms "major changes in allowable land use" as defined in the initiative. Under the initiative, a "major change in allowable land use" would mean any proposed amendment to the City's General Plan, Specific Plans or specified City zoning ordinances that would have one or more of the following effects: 1) A "significant increase" (as defined in the initiative) in traffic, density or intensity of use above the existing condition in the neighborhood where the major change is proposed; 2) A change from a public land use to a private land use, or 3) A change from non-residential use to residential or mixed uses with a density of greater than 8.8 dwelling units per acre. A. "significant increase" in traffic, density or intensity of use, as defined in the initiative includes: 1) The traffic generated by the project produces more than 150 additional peak hour trips; 2) The density increase generated by the project produces more than 50 additional residential dwelling units; 3) The intensity of use generated by the project produces more than 50,000 additional square feet of residential,office or other nonresidential floor area. If the City Council, after a full public process, approves a land use change it would not take effect unless a majority of the voters of the City vote in favor of the change at the next general municipal election, or at a special election paid for by the applicant. Land use changes not falling within the categories described above would be considered "minor changes" not subject to the voter approval requirements. However, the proposed measure would group together all approved minor and major land use changes within a "neighborhood," defined as properties within 1000 feet of each other, approved by the City within an eight-year period to determine whether those approvals together with a new application would be subject to the requirements of the initiative. The initiative states it would apply to all "major changes in allowable land use" approved by the City Council after the date the proponents publish a Notice of Intent to Circulate an Initiative Petition but would not apply to changes approved by the City Council prior to the effective date of the initiative, if the holder of the approval has acquired "vested rights" to develop under California law. The initiative contains additional exceptions for public school, hospital, and affordable housing projects and for non-conforming residences that are occupied on the date of publication of the initiative. The initiative also would not apply in circumstances where it would violate state or federal law or the U.S. Constitution. Page 2 of 9 PROPOSED CHARTER AMENDMENT TO REQUIRE VOTER APPROVAL OF SPECIFIED CHANGES IN ALLOWABLE LAND USE (DETAILS) Public participation in workshops and public hearings that often run until after midnight has largely proven to be a waste of the People's time and energy. Lately, the City has been breaking land use changes into smaller actions that often convert commercial zoning to residential zoning while ignoring the cumulative impacts of these changes. While the People by and large do not support these actions, they find it difficult to muster the support to challenge each of these smaller land use changes in court or by referendum. Moreover,when people do rally in opposition, our voices are ignored. The people of Huntington Beach, being weary of repeatedly fighting the City's land use actions, find an initiative to be the only effective means to protect their quality of life and the character of their neighborhoods. An initiative is necessary to ensure that major changes in land use conform to the will of the people. The people of Huntington Beach find that: (a) Environmental quality in Huntington Beach, which directly affects quality of life for its residents, workers and visitors, is significantly impacted by excess development which causes severe traffic congestion and gridlock,as well as air, noise and water pollution; (b) The city's traffic circulation system is already oversaturated, and at or near gridlock during rush hours, and, as such, is inadequate to support the city's existing level of development; (c) These existing traffic and traffic circulation system conditions, and their adverse public safety, public health and quality of life consequences, bear testimony to the fact that the city's existing land use and development review and approval procedures do not carefully or accurately consider, nor adequately weigh, the adverse impacts to the local environment and quality of life caused by increased density and congestion resulting from major changes in allowable land use; (d) The standards by which the city evaluates major changes in allowable land use are ill-defined and inadequate to avoid or effectively minimize the adverse effects of those changes; and (e) The people of Huntington Beach, whose quality of life and property rights are at stake, should have the power to decide, after careful, independent evaluation by the city of the adverse environmental effects of major changes in allowable land use, based on clear and consistently applied standards, whether a proposed major change in allowable land use is worth the added congestion and density it will cause. Purpose. It is the purpose of this amendment to: (a) Give the voters of Huntington Beach the power to determine whether the city should allow major changes in allowable land use, as defined below,by requiring voter approval Page 3 of 9 of any such proposed change, and, thereby ensure maximum public participation in major land use and zoning changes proposed in the city; (b) Ensure that the voters of Huntington Beach receive all necessary and accurate environmental information on proposals for major changes in allowable land use, so that they may intelligently vote on any such proposal; (c) Ensure that city officials provide timely, accurate and unbiased environmental review of all proposals for major changes in allowable land use, so that they may minimize their adverse traffic and land use impacts and maximize neighborhood compatibility before the voters decide on any such change; (d) Ensure that all elements of the land use change approved by the voters are implemented; and, (e) Protect the public health, safety and welfare, and the quality of life, for all citizens living or working in the city, and for all visitors to the city. Definitions. The definitions set forth in this section apply to the provisions of this article only and do not affect any other provision of law. (a) ``Aggrieved person" means the proponent of a major change in allowable land use, any property owner or city resident, and any other person entitled to CEQA notice pursuant to Public Resources Code section 21092.2. (b) "As Built Condition'' means the dwelling units, office and other nonresidential units, buildings and baseline traffic conditions existing at the time the city issues the notice of preparation of an environmental impact report for the major change in allowable land use, or, where no such notice is issued, when the city commences environmental analysis for the major change. Illegal dwellings and other conditions that exist in violation of the city°s zoning ordinance or its local coastal program and are subject to the city's power of abatement, may not be accounted for in the as built condition for the purpose of determining a"significant increase," as defined in subdivision(c)below. (c) "Significantly Increase" or "Significant Increase" means any one or more of the following increases over or changes compared to the as built condition of a neighborhood: (1) The traffic generated by the project produces: (i) more than 150 additional morning or evening peak hour trips; or(ii) an increase in intersection capacity utilization (ICU) of 0.01 or more at any critical intersection operating at a level of service (LOS) of"E" or worse or having an ICU of 09 or higher; or (iii) any increase in ICU at any city intersection from less than 0.9 to 0.9 or higher; or (iv) any change in LOS at any critical intersection or on any critical corridor from better than "E"to"E" or worse. For purposes of determining traffic increases attributable to a major change in allowable land use, baseline and projected ICU and LOS conditions shall be determined considering weekday peak hour conditions at such time of the year when local public schools are in session. Page 4 of 9 (2) The density increase generated by the project produces more than 50 additional residential dwelling units. (3) The intensity of use generated by the project produces more than 50,000 additional square feet of residential, office or other nonresidential floor area. The voters declare that dividing a major change in allowable land use that would otherwise require their approval into partial changes that would not by themselves require their approval, frustrates their intent to have control over major changes in allowable land use and is contrary to the purposes of this article. For the purposes of this article, a 'significant increase" occurs if the combination of a proposed minor change in allowable land use with one or more other minor or major changes in allowable land use in the same neighborhood approved within eight years preceding issuance of the notice of preparation of an environmental impact report for the proposed minor change, or, where no such notice is issued, within eight years preceding commencement of the city's environmental analysis for the proposed minor change, meets any increase or change threshold for traffic, density or intensity of use defined in this subdivision. (d) "General Plan"means the General Plan of the City of Huntington Beach. (e) "Major Change in Allowable Land Use" means any proposed amendment, change, or replacement of the general plan, of the city's zoning ordinance (as defined and contained in the Huntington Beach Municipal Code) meeting any one or more of the following conditions: (1) The proposed change in allowable land use would significantly increase traffic, density or intensity of use above the as built condition in the neighborhood where the major change is proposed. (2) The proposed change in allowable land use would change a public use to a private use. A major change in allowable land use in this category shall include a change of use on (i) land designated for a public use or a public right-of-way; (ii) land designated as a utility right-of-way; (iii) land donated, bequeathed or otherwise granted to the city; (iv) land used or designated for Huntington Beach school property; (v) land owned, controlled or managed by the city, including all land and water; (vi) the beaches as defined in the Huntington Beach Municipal Code; and (vii) the tidelands and all other public trust lands, as defined in the Huntington Beach Municipal Code. (3) The proposed change in allowable land use would change a nonresidential use to residential or a mixed use resulting in a density of greater than 8.8 dwelling units per acre whether or not any such unit is used exclusively for residential purposes. (f) "Peak Hour Trips" means the number of peak hour vehicle trips a major change in allowable land use would generate on a daily basis. Peak hour trips generated shall be calculated by using the most recent version of the Trip Generation Manual of the Institute of Transportation Engineers (ITE) in effect on the date the city issues the notice of preparation of an environmental impact report for a major change in allowable land use, or, where no such notice is issued, when the city commences environmental analysis for the major change. Page 5 of 9 (g) "Minor Change in Allowable Land Use" means any proposed amendment to the general plan, the city's zoning ordinance that does not fall within the definition of a major change in allowable land use. (h) "Neighborhood" means all properties located either entirely or partially within 1,000 feet of any parcel or lot that is subject to a proposed change in allowable land use. (i) "Proponent" means any individual, firm, association, syndicate, partnership, corporation, trust or any other legal entity applying with the city for a change in allowable land use. If the city itself initiates the change, it shall be deemed the proponent for the purposes of this article. Vote of the People on Major Change in Allowable band Use. (a) Each major change in allowable land use shall be put to a vote of the people; provided, however, that no such change shall be submitted to the voters unless the city council has first approved it. A major change in allowable land use shall become effective only after approval by the city council and a majority of the voters of the city voting "YES" on a ballot measure proposing such change at either a regular or special municipal election. An advisory election does not satisfy the voter approval requirement. (b) The sample ballot materials mailed to the registered voters prior to an election shall describe any major change in allowable land use in a manner that clearly discloses both the scope and main features of the project (including sequencing or phasing, as may be the case) that the major change in allowable land use consists of or depends on, and the location and the acreage of the project site. The description shall include the text of the proposed amendment to the general plan, to the city's zoning ordinance or to the zoning ordinance for the coastal zone, or of any proposed adoption of, or amendment to, a specific plan. The description shall clearly compare the project and its traffic impacts both to the as built condition, and to existing applicable land use designations and zoning classifications, providing accurate comparative data concerning existing as well as proposed densities (in units per acre) and intensities of use (in square footage, types of use and traffic impacts). If a site-specific development is proposed in connection with a major change in allowable land use, and densities or intensities of use in such site- specific development are less than the densities or intensities the major change proposes, the text of the ballot shall clearly disclose the maximum total residential, commercial,, industrial or other nonresidential buildout potential, and traffic impacts under buildout, compared to the as built condition. Easily readable maps shall be used to assist the voters in the project description. All of the information called for by this subdivision shall be posted on the city's Website no later than 30 days prior to the city council's action on a major change in allowable land use, and such information shall be updated no later than ten days following the city council's approval, if the council has changed the project. (c) For all major changes in allowable land use approved by the city council after the effective date of this article of the city charter, the election required by this article shall be set for the general municipal election next following city council approval of the major change; or, by mutual agreement with the proponent, the city council may call a special municipal election, with the cost of the special election being borne solely by the proponent. For all major changes in allowable land use approved by the city council on Page 6 of 9 or after the date of publication, pursuant to Elections Code section 9205, of the notice of intention to circulate the initiative petition to add this article to the city charter, but before the effective date of this article, the election required by this article shall be set for the general municipal election next following the effective date of this article; or, by mutual agreement with the proponent, the city council may call a special municipal election, with the cost of the special election being borne solely by the proponent. (d) The popular vote required by this article shall be in addition to all other applicable review and approval requirements for such major change, including environmental review in compliance with the California Environmental Quality Act(CEQA). (e) All subsequent city permits and approvals necessary to implement all or part of a major change in allowable land use shall conform to the voter-approved change. Under no circumstances shall any subsequent permit or approval authorize, allow or otherwise accommodate higher densities, intensities of use, or trip generation than the densities, intensities and trip generation approved by the city council and the voters. No certificate of occupancy for any structure built as part of a project that depends on a major change in allowable land use shall issue until all mitigations of traffic impacts, including control signals, increases in right-of-way capacity via widening roads, or other right-of-way or intersection improvements, as may be required by the city council, have been developed :and implemented, and the city engineer has certified completion and operation of all traffic impact mitigations in full compliance with the city council's approval action. Application for Major Change in Allowable Land Use; City Review. (a) To carry out the purposes of this article, any application for a major change in allowable land use shall contain accurate and up-to-date factual data and information, and the subsequent written city review further shall include the following (in addition to all other disclosures required under CEQA and the Huntington Beach Municipal Code): (1) A plot plan or diagram, drawn to scale, showing the arrangement of plots and maximum proposed residential or nonresidential unit buildout per plot. (2) A complete, objective discussion of the potential inconsistencies between the project that consists of, or depends on, the major change in allowable land use, and: (i) surrounding uses in the neighborhood; (ii) the general plan; and (iii) the city's zoning ordinance. To the extent the project differs from existing uses, a full description of the mitigations necessary or recommended for adoption to minimize neighborhood impacts and incompatibility shall be provided. (4) A complete, objective analysis of the traffic circulation and traffic safety impacts of the project that consists of, or depends on, the major change in allowable Iand use. The traffic analysis shall be prepared directly by, or under direct contract to, the city. Unless CEQA disclosure provisions, the Huntington Beach Municipal Code, or other city regulations, policies or standards require selection of a larger traffic impact area, ICU and LOS impact analysis shall be provided for all critical corridors and critical intersections within 3,000 feet of any parcel subject to the major change in allowable land use. LOS analyses shall utilize both "Urban Streets" and "Signalized Intersection" methodologies, as defined in the current Highway Capacity Manual published by the Transportation Research Board, a division of the National Research Council. The traffic analysis shall Page 7 of 9 adequately disclose the direct, the indirect or secondary, and the cumulative impacts of the project, accounting for all relevant factors, such as heavy vehicle traffic, bus stops, intersection and corridor oversaturation (downstream traffic queuing impacts), pedestrian traffic, side street and driveway entrances and exits, ingress stacking and overflowing, and left turn lane queuing and overflow. The traffic analysis also shall identify the mitigations necessary or recommended to reduce the traffic impacts to an ICU below 090 or a LOS better than "E" for the corridors and intersections subject to this analysis. The location, nature and adverse construction-phase impacts of the traffic impact mitigations shall be clearly described. (b) To reduce delay for proponents, the city's decision making bodies may review and conditionally approve discretionary permit applications required for a project prior to the people's vote on a major change in allowable land use on which such project depends; provided, however, that no conditional permit approval will become effective unless the related major change in allowable land use is passed by the voters and has itself become effective. If the related major change in allowable land use is rejected by the voters, such change and all conditional permits shall have no force and effect. Exceptions. (a)This article shall not apply to any major change in allowable land use that is limited to allowing the development of a public school or a hospital. Nor shall this article apply to preclude completion of a site-specific development that depends on a major change in allowable land use approved before the effective date of this article, if before such date, the holder of any permit or other entitlement for use for such development has lawfully and in-good faith acquired a vested right,under state law, to carry out the development to completion. (b) The provisions of this article shall not apply to the extent that they would violate state or federal laws. (c) This article shall not be applied in a manner that would result in the unconstitutional taking of'private property. (d)This article shall not apply to affordable housing projects required by state or federal law. (e)This article shall not apply to any major change in allowable land use of property with non-conforming residential units that were occupied on the date of publication so long as the proposed change in allowable land use meets the following conditions: the existing residential units are rendered conforming under the proposed change;the proposed change does not allow an increase in the number of residential units on the property; and the proposed change does not create a significant increase in traffic or intensity of use. (f)This article shall not apply to affordable housing projects for low and moderate income housing as defined by state law. Page 8 of 9 Relationship to City Charter and Municipal Code. If any provisions of this article conflict with other provisions of the charter or contained in the Huntington Beach Municipal Code, the provisions of this article shall supersede any other conflicting provision. Amendments. No provision of this article may be amended or repealed except by a vote of the people of Huntington Beach. Judicial Enforcement. Any aggrieved person shall have the right to maintain an action for equitable relief to restrain any violation of this article, or to enforce the duties imposed on the city by this article. Construction. This article shall be liberally construed to accomplish its purposes. Nothing herein shall be construed to make illegal any lawful use being made of any land in accordance with city land use and zoning regulations in force before the effective date of this article. Consistency with Other Ballot Measures. If another ballot measure is placed on the same ballot as this measure and deals with the same subject matter, and if both measures pass, the voters intend that both measures shall be put into effect, except to the extent that specific provisions of the measures are in direct conflict. In the event of a direct conflict, the measure which obtained more votes will control as to the directly conflicting provisions only. The voters expressly declare this to be their intent,regardless of any contrary language in any other ballot measure. Severability. If any section, subdivision, clause, sentence, phrase or portion of this article is declared invalid by a court of competent jurisdiction, the remaining sections, subdivisions,dauses, sentences, phrases and portions shall remain valid and enforceable. The voters declare that they would have passed all sections, subdivisions, clauses, sentences, phrases and portions of this article without the section, subdivision, clause, sentence, phrase or portion declared invalid by a court of competent jurisdiction. Page 9 of 9 � � .� \ . d� .: y . . m � y � 2 �«« _ \\ .IE / \ I � ACTION MINUTES Tues., Dec. 15, 2009, 6:00 PM 1. Roll Call: Jerry Bame, Ralph Bauer, Mark Bixby, Patrick Brenden, Shirley Dettloff, Dick Harlow, Gregory Hartnett, Marijo Johnson, Gary Kutscher, Joe Shaw, Ray Silver, Sharie Sneddon, Tim Stuart, Dave Sullivan, Shane Whiteside All present except Hartnett and Whiteside 2. Public Comments: An opportunity for the public to comment on any item of iriterest, either in general or specific to this agenda, that is within the subject matter or jurisdiction of the Commission. Comments will be limited to no more than 3 minutes. Speakers are encouraged to submit their comments in writing. Each Commission MemberWill receive a copy of all!the submitted comments. Public Comments were received as follows: ® Kim Kramer on behalf of the Huntington Beach Downtown Residents Association requesting that the monetary trigger for a Measure,C"vote be variable based on the size of the park and that it not be raised above $100,000 ® Joan Flynn in support of strengthen thequalificationsfor the position of City Clerk. 3. Approval of Minutes from the November 3 aid:,December, Commission meetings. Motion Dettloff, second Brenden to approve he minutes.of Nov. Sand December 1 as submitted. The motion carrie&113-0-2. x: 4. Staff Presentation on Charter,Section 612 Public Utilities and Parks and Beaches {Measure C} as Follow-up to-the Dec. 1 Public Meeting. City staff recommended: 1. No change in'sale, lease';exchange,or transfer of beach or park property, 2. No change in the"restriction against improvements such as a golf course or driving range, 3. --No change in"the building size trigger of 3,000 square feet, The addition"'of an exclusion for repair, replacement, and/or maintenance of sewer, water, and storm`.drain facilities, and 5. The addition of an-exclusion`for underground structures. 5. Discussion and possible action on Charter Section 612 Public Utilities and Parks and. Beaches(Measure C) -e' Following some discussion:Commissioner Silver made a motion, seconded by Commissioner Sneddon for staff to comeback to the Commission with language for a recommendation to the City Council that they adopt a set of procedures to be followed in determining when a project exceeds the requirements triggering a Measure C vote. The motion carried 13-0-2. Commissioner Dettloff made a motion, seconded by Commissioner Shaw to add the July 11 1994 minute action language to Section 612 of the City Charter. Following some discussion, Commissioner Dettloff withdrew her motion * Material related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the agenda packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. Following further discussion Commissioner Dettloff made a motion to have staff look at the current language in Section 612 and where appropriate take language from the July 11, 1994 minute action and add it to Section 612 of the Charter. Her second, Commissioner Shaw noted that those that spoke at the public meeting on Measure C had indicated that they wanted the minute action incorporated into the Charter. The motion carried 13-0-2. Commissioner Bauer made a motion to include language in Charter Section 612 based on staff's recommendation to add an exclusion from a Measure C vote repair, replacement, and/or maintenance of sewer, water, and storm drain facilities within the a 3000 square foot limitation. The motion was seconded by Commission Sullivan. Following some discussion, the motion carried 12-1-2.(Shaw No) Commissioner Sullivan made a motion, seconded by Commission'Bauer to have staff return with language for inclusion in Charter Section 612 an exclusion from a Measure C vote for underground structures. The motion carried 13-0-2. Commissioner Dettloff made a motion, seconded byYCommissioner Brenden to instruct staff to come back with an appropriate monetary minimurmfor triggering a Measure C vote,and a potential cost indexing method to keep it current:in the future .The motion carried 13-0-2 Commissioner Bixby noted that a recent controversy over.,the location of a cell tower in a city park brought to light a potential loopholein Measure C'when an applicant is requesting a site license as opposed to a lease to locate a structure in the park.,,To correct this he suggested language requiring a Measure C vote on any agreement that would result in a reduction in recreational opportunities. Following some discussion Commissioner Bixby made a motion, seconded by Commissioner,Sullivan to ask;staff to ieturri.with language to be incorporate in Section 612 that would require a:Measure C vote before approval of any agreement that would allow a structure such as a"cell tower to be constructed on city parkland or beaches. Commissioner Silver made a motion'`;"second byCommissioner Shaw to return with language for a recommendation;,to.Council that;a_written notification be sent to residents within a specified perimeter whenever a"project below the thresholds for a Measure C vote is going to be constructed1n a city Commissioner Bauer-left,the meeting. 6 -Oiscussion and possible action-"on Article III of the City Charter. Section 300 Elective offices and their terms Motion Brenden, second Johnson to add the following language to Section 300 of the Charter: If no candidate who meets the qualifications shall be elected to the office of City Clerk, City Treasurer, or City Attorney, the City Council shall fill that position by appointment until the next municipal general election in which a qualified candidate is elected The motion carried 12-0-3 f Section 309 - City Attorney - Powers and Duties Motion Sneddon, second Johnson to incorporate the qualifications for the City Attorney as identified in the recommendations from Chairman Harlow,Vice Chair Dettloff and staff with the addition of 3 years of Municipal law experience and a change in Section 0) so it reads as follows: * Material Related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the Agenda Packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications. Cooperate with and assist the city manager in carrying out the manager's responsibilities in administering the affairs of the city most efficiently, economically, and harmoniously, consistent with his or her duties as prescribed by law, the City Charter, and ordinances of the city. ® Section 310 - City Clerk - Powers and Duties Motion by Commissioner Sneddon, 2"d by Commission Johnson to incorporate the qualifications into Section 310 of the Charter as identified in the recommendations from Chairman Harlow, Vice Chair Dettloff and staff with a change in the language in 0) so it reads as follows: Cooperate with and assist the city manager in carrying out the manager's responsibilities in administering the affairs of the city.most:efficiently, economically, and harmoniously, consistent with his or her duties as prescribed by law, the City Charter, and ordinances of the city. Section 311 - City Treasurer - Powers and Duties Motion Sneddon, second Shaw to amend Section 311 to incorporate the qualifications for the City Treasurer as recommended in the memo from Shari Freidenrich and the add a new section (d) to read as follows: Cooperate with and assist the city manager in„carrying out the manager's responsibilities in administering the affairs of the city,most efficiently, economically, and harmoniously, consistent with his or her duties as prescribed by law, the City Charter, and ordinances of the,,city:-: 7. Commissioner Requests: Questions, comments, or suggestions for discussion at a subsequent meeting of the Commission 8. Adjourn to the next-regulaurneeting scheduled for Tuesday, Jan 5 at 6 PM in City Hall Room B 8. z. Material Related to the Charter Sections to be discussed and submitted prior to the posting of the agenda will be included in the Agenda Packet. Items received after posting of the agenda will be distributed at the Commission meeting as late communications.