ALAMEDA COUNTY COMMUNITY DEVELOPMENT AGENCY
Sandra Rivera
Agency Director
224 West Winton Ave
Room 110
Hayward, California
94544-1215
phone
510.670.5333
fax
510.670.6374
www.acgov.org/cda
MEMORANDUM
DATE: May 15, 2023
TO: Procurement and Contracting Committee
Supervisor Miley, District 4
Supervisor Marquez, District 2
FROM: Sandra Rivera, Director, Community Development Agency Michelle Starratt, Housing Director, Housing & Community Development SUBJECT: Program Evaluation and Recommendations for the MA1 Pilot Labor and Contract Compliance Program
The Housing and Community Development Department presented its fourth report on the Measure A1 (MA1) Labor and Contract Compliance Program for Affordable Housing Projects to the Procurement and Contracting Committee at its January meeting. The report includes data from the inception of the program through first quarter 2022/23. The next report will be presented at the July Procurement and Contracting Committee through the third quarter, 2022/23. The MA1 Labor Compliance program continues to meet and exceed its goals, and there are lessons to be learned. The Pilot Labor and Contract Compliance Program tracks two separate types of goals – Hiring Goals and Business Goals.
This special report presents staff findings about Local Hire and Disadvantaged Hire goals, and recommendations for improvement. An additional special report on the lessons learned MA1 Local Business and Small Local Business requirements will be presented in the Fall.
When adopting the MA1 Labor Compliance pilot program the Board of Supervisors stated as its main goals to keep funding local and provide employment benefits for Alameda County residents. The program required the creation of a new database to track progress. While the program has met its goals, there are challenges to hiring local and disadvantaged residents in the construction industry that need to be examined for greater success. Some of these issues are within the Community Development Agency’s purview and will be implemented, and some are not.
Local Hire / Targeted Disadvantaged Hire Goals and Performance The adopted policies and goals for hiring Alameda County residents and the outcomes for the pilot program thus far:
Workforce Category Workforce Goals Attainment
Local Hire 30% of Hours 42% of Hours
Disadvantaged Resident Hire 5% of Hours 8% of Hours
Attachment B: Alameda County Reports
Special Report – Findings and Recommendations for the MA1 Labor Compliance Program for Affordable Housing Projects
March 20, 2023
Local Hire: Local hires on MA1-funded projects exceeded the minimum requirement by over 250,000 hours, with Alameda County residents working 42% of the employment hours. However, there are specific challenges that, if addressed, could result in more employment opportunities for residents, better career pathways for disadvantaged workers, and timelier subcontractor hiring.
Targeted Disadvantaged Hire: The minimum requirement for Targeted Disadvantaged Hires was met and surpassed with over 167,000 hours achieved in 17 completed projects.
The method of employees self-reporting whether they are disadvantaged is currently being analyzed and advancements in data tracking are being studied for Alameda County apprenticeships.
Evaluation and Opportunities for Improvement in Key Areas:
1. Worker Referral System
2. Employment Pipeline
3. Community Based Organizations: Workforce Development Partners
4. Data Collection and Reporting
Feedback was collected from stakeholders, including CBOs, developers, subcontractors, and compliance monitors, as well as other county and state departments. The MA1 Labor Compliance program is successful because many contractors excel and exceed requirements, while other contractors do not follow the rules. Without proper enforcement mechanisms, there is no penalty for not following the requirements. If there were consistent performance, staff believe the program would achieve even higher results. Staff identified barriers and actions that could be taken to create a more successful local hire program. The feedback gathered in this process informed the policy recommendations included in this memo.
This memorandum will report on the results of the evaluation of the MA1 labor and contract compliance program under the four main categories listed above. The report outlines recommendations, staff actions, and items may require further work or Board approval by category.
I. Workforce Referral System
The existing worker outreach and referral infrastructure has resulted in meeting the goals, but higher numbers of referrals could occur with recommended changes. Challenges include concerns from employers regarding utilizing existing workforces (which may not be county residents), ability to fulfill referral requests in a timely way, and limited enforcement mechanisms when goals are not met.
Special Report – Findings and Recommendations for the MA1 Labor Compliance Program for Affordable Housing Projects
March 20, 2023
Evaluation Conclusion #1: Existing Workforce:
Employers prefer to use their existing trained and experienced workforce rather than new hires of local candidates. Subcontractors often face logistical challenges in assigning Alameda County residents to projects, and small businesses may be unable to hire locals without displacing existing employees.
Evaluation Conclusion #2: Outreach/Referral Methods:
Process: When a contractor has an opening, they are required to send a notice through Elations Database to community-based organizations and unions announcing job vacancies and worker requirements. They are required to wait 72 hours for a response. CBO’s then respond with a worker referral. However, the feedback from CBO’s is that few of their referrals are hired. The outreach process is often treated as a formality instead of a process to be followed.
The original worker outreach and referral methods were insufficient to connect MA1 job vacancies with resident job seekers. Employers (both General Contractors and Sub-Contractors), anxious to bring on employees, may not follow the MA1 referral wait times which would allow sufficient opportunity for local hires to submit required information.
Evaluation Conclusion #3: Enforcement:
The MA1 policies do not include enforcement mechanisms (including fines for non- performance) which lead to frequent violations with few consequences for repeat offenders.
Enforcement of policies could delay progress and increase costs, and the outreach process often lacks response to resident referrals.
Recommendations and Actions for Workforce Referral System These actions can improve the outreach and referral system, raise awareness of job opportunities and career paths for residents, and increase the number of resident referrals for MA1 jobs.
Actions that CDA can take
1. Completed: Staff updated the outreach and referral system in Elations, utilizing feedback from CBOs, contractors, and monitors. Manuals were updated and trainings modified to address compliance violations. Monthly meetings with developers and contractors were restructured to highlight outreach issues to bring awareness, and a new tracking system implemented to report on subcontractor local contracting hours.
2. Completed: Staff collaborated with larger contractors to increase local hiring hours and simplify residency verification. Providing technical assistance improved the number of hours worked by resident while accommodating the needs of dispatch teams managing multiple job sites. Staff also gathers information on local hiring incentives, such as, tax credits for hiring unhoused residents and pre-apprenticeship programs, which will be incorporated into MA1 outreach materials.
3. Pending Task: Staff will continue to evaluate and modify the outreach and referral system, utilizing feedback from CBOs, contractors, and monitors.
Special Report – Findings and Recommendations for the MA1 Labor Compliance Program for Affordable Housing Projects
March 20, 2023
Actions outside of CDA’s purview
The pilot labor and compliance program generated valuable data for improving job training and placement programs. This information can be used to create resources for contractors via workforce development agencies.
Pending Task: CDA will set up meetings with the County and City’s Workforce Development Board staff to present the information inform policies and implementation of workforce programs within Alameda County to better serve priority communities.
Recommended Changes to the MA1 Policies Requiring Board of Supervisors Approval
1. Amend the MA1 Labor Compliance Policies to add enforcement penalties, including fines, for violations of the MA1 labor compliance policies. Align our enforcement mechanisms to those used by similar Bay Area programs. Clearly defined penalties are expected to improve local and disadvantaged hire outcomes.
2. Amend the MA1 Labor Compliance Policies to allow certified SLEBs to bypass the referral system if they do not have vacancies within their organization and maintain the targeted and local hire requirements for general contractors. This change to the policy would provide flexibility for contractors, encourages SLEB certification, and helps enforce local hire requirements for larger businesses.
II. Employment Pipeline
The pipeline for Alameda County residents to enter the construction industry is unclear. Equitable access to MA1-funded jobs is needed.
Evaluation Conclusion #4: Workforce Demographics:
Identified in the data is the concern that the construction workforce is not representative of the demographics of county. While the MA1 compliance program can ensure that jobs are created, it cannot address the larger issue of diversifying the existing construction workforce.
Evaluation Conclusion #5: Pipeline Barriers:
Although the MA1 program creates job opportunities, there are specific barriers that prevent Alameda County residents from accessing them in an equitable way. These barriers are from four key areas:
a) effective job postings,
b) clear pathways for pre-apprentices into apprenticeships, c) support for residents pursuing trades which do not have apprenticeship programs, d) lack of necessary safety and skills training certifications for entry level employees.
Evaluation Conclusion #6: Non-Local Union Referrals:
Sub-contractors are responsible for securing a new employee. When they search for employees at Union hiring halls they often receive non-local referrals. For instance, the dispatchers who are assigning employees to many jobs at once, may not have access to information about who is or is Special Report – Findings and Recommendations for the MA1 Labor Compliance Program for Affordable Housing Projects
March 20, 2023
not local, or understand that this particular job requires a local hire preference. In some cases, Contractors have already hired non-residents through the hiring hall process, without knowing or following the MA1-required outreach procedures to subsequently look for new employee through the CBO process.
Recommendations and Actions
The barriers identified in the Employment Pipeline indicate that increase resources for workforce development programs, their partners, and expansion of career opportunities for residents will boost resident referrals to MA1 jobs.
Actions that CDA can take
1. Completed Staff made administrative changes and enhanced communication with CBOs about job openings
2. Completed Communicated with CBOs to identify referral system challenges and barriers to worker placement and included that information in this Pilot Program Evaluation.
3. Completed (and ongoing) Staff researched regional strategies and successful pathways to increase hires of equity priority workers.
4. Completed (and ongoing) Collaborated with stakeholders to redesign the Elation outreach and referral system.
Actions outside of CDA’s purview
1. Expand job training programs targeting underrepresented groups, ensuring clear employment pipelines for graduates.
2. Create a program providing OSHA certifications and other necessary certifications in partner pre-apprentice training programs.
3. Survey CBO referral agencies and subcontractors to identify frequently requested certifications that act as employment barriers.
Recommendations Requiring Board of Supervisors Approval
1. Amend the MA1 Labor Compliance Policies to add a pre-apprenticeship and certification program requirements for trades without apprenticeship programs to the MA1 labor and contract compliance program, in order to insure a pathway to apprentice positions.
2. Amend the MA1 Labor Compliance policies to increase enforcement mechanisms related to Employment pathways including fines, based on Bay Area best practices.
Special Report – Findings and Recommendations for the MA1 Labor Compliance Program for Affordable Housing Projects
March 20, 2023
III. Community Based Organizations: Workforce Development Partners The workforce referral process involves outreach to union and state-certified apprenticeship programs and 4 Community Based Organizations (CBOs); Cypress Mandela Training Center Inc, Rising Sun Energy Center, Tradeswomen, Inc, and West Oakland Jobs Resource Center.
Evaluation Conclusion #7: Participation
Because of the barriers identified in this report, CBO’s experienced low placement rates for workers. This resulted in diminished CBO participation in the latter half of the Pilot Program.
Geographic concentration of CBOs in north county and limited coverage of skilled trades by workforce programs in the balance of the county contribute to these challenges.
Recommendations and Actions
Enhance the CBO referral network, raise construction career awareness for Alameda County residents in other parts of the county, and boost worker referrals for MA1 projects.
Actions that CDA can take
1. Completed: Staff reconnected with CBO referral agencies through interviews and site visits.
2. Completed (and ongoing): Staff collaborated with employers to understand referral needs for better employability.
3. In progress Staff are conducting research to identify more trade training programs within our jurisdiction, with a focus on identifying programs with an equity focus.
Actions outside of CDA’s purview
1. Post job openings on County job boards and industry-appropriate job listing sites for wider reach.
2. Encourage partners like developers/service providers to advertise jobs within MA1- funded housing communities so that residents have access. *No actions requiring Board of Supervisors approval are being recommended at this time.
IV. Data Collection and Reporting
Reporting platform limitations and limited County staff access to basic administrative functions pose challenges for timely and accurate data collection.
Evaluation Conclusion #8: Data Collection:
Material and procedural barriers limited worker participation in the data collection process. The forms were only available in English, and field interviews were conducted only once a month per Special Report – Findings and Recommendations for the MA1 Labor Compliance Program for Affordable Housing Projects
March 20, 2023
job site. Use of the term "targeted Disadvantaged worker" also discouraged self-identification by workers.
Evaluation Conclusion #9: Reporting
Inconsistent coordination and reporting procedures between the County and the City of Oakland, as well as the use of different reporting systems (Elation and LCP), create significant barriers for accurate reporting and project compliance monitoring. Varying definitions and execution of terms and requirements further exacerbate the issue.
Recommendations and Actions
These actions, in tandem, can improve the accuracy and granularity of information reported to the board, increase data collection from a larger pool of residents, eliminate redundancies across jurisdictions, reduce confusion, and decrease barriers for contractors building MA1-funded affordable housing projects.
Actions that CDA can take
1. Completed: Staff translated the first MA1 bilingual forms in Spanish and will collaborate with developers and contractors to determine additional translation needs.
2. Completed: Staff updated the data collection program after identifying holes in data collection and are working to increase the number of workers from whom data is collected.
3. Completed: Staff evaluated the limitations of data reporting systems and made adjustments where possible, while also working with overlapping funding agencies to address access, data limitations, definitions of key terms, Section 3 reporting, manuals, and trainings.
4. In progress: Amend the MA1 Labor Compliance Policies to rename "Targeted Disadvantaged Worker" to "Equity Priority Worker" to increase participation in worker demographic data collection.
5. In progress: Staff collaborated with contractors to create an electronic form for data collection from equity priority communities as an alternative to paper forms and are evaluating additional technological improvements.
Actions outside of CDA’s purview
1. Explore expanding the County's definitions to incorporate Oakland's definitions to allow for consistency and ease of data collection.
*No actions requiring Board of Supervisors approval are being recommended at this time.
ALAMEDA COUNTY COMMUNITY DEVELOPMENT AGENCY
H O U S I N G & C O M M U N I T Y D E V E L O P M E N T D E P A R T M E N T
Sandra Rivera
Agency Director
Michelle Starratt
Housing Director
224 West Winton Ave
Room 108
Hayward, California
94544-1215
phone
510.670.5404
fax
510.670-6378
TTY
510.265.0253
www.acgov.org/cda
MEMORANDUM
TO: Procurement and Contracting Committee
Supervisor Miley, District 4
Supervisor Marquez, District 2
CC: All members of the Board of Supervisors
FROM: Sandra Rivera, Director, Community Development Agency Michelle Starratt, Housing Director, Housing and Community Development
DATE: July 17, 2023
SUBJECT: Report # 5 - Update on the Measure A1 Labor Compliance Program for Affordable Housing Projects
On January 23, 2023, the Community Development Agency (CDA) presented the fourth Measure A1 (MA1) Workforce report for projects both completed and currently in construction through September 30, 2022. This fifth MA1 Workforce report presents data from inception of the pilot program through February 28, 2023. As of February 28, 2023, the County committed funds to 52 projects under the MA1 Rental Housing Development Program.
These projects are in various stages of development: 13 are in predevelopment, 11 are in construction, and 28 projects completed construction and are leasing up or are fully occupied.
For a list of all projects and their status, please see Exhibit A.
Reporting Period Highlights:
52 MA1 Rental Projects as of February 28, 2023
o 28 completed
o 11 in Construction
o 13 still in predevelopment
Nearly 2.7 million (2,669,134) construction worker job hours created in Alameda County.
Equity Priority worker hire is 12% of hours worked, up from 8%, highlighting the efficacy of programmatic changes.
20,322 construction jobs created in the County since inception on projects subject to the full MA1 requirements
$142,270,837 in MA1 investment resulted in $219,127,782 in contracts being awarded to Alameda County businesses, a 154% return on investment. Clarified the definition of priority workers to better capture self-reported data
2 ADOPTED GOALS AND ATTAINMENT
Data for completed projects is static and no longer changing, while projects in construction continue to have fluid data as progress on construction proceeds month over month. Sometimes it can take up to a year for a completed projects data to be final. There is no data on for projects in predevelopment.
The MA1 Implementation Policies adopted by the Board identified the following goals, all of which were exceeded:
Workforce Goals Measured in Hours Attainment
For all completed and in construction projects through 2/28/23 Prevailing Wage All Projects Goal met
Local Hire 30% of Hours 41% of Hours
Equity Priority Worker Hire 5% of Hours 12% of Hours
Business Goals Measured in Dollars
Only completed projects through 2/28/23
Local Contracting 25% of MA1 investment =
$32.1 Million for completed
projects
$219,127,782 million in
construction contracts
awarded to 120 Alameda
County businesses for these
completed projects.
Small Local Contracting 20% of MA1 investment =
$25.6 million for completed
projects
Nearly $74.5 million was
awarded in construction
contracts to 52 Small Local
businesses on completed
projects
Progress on Goal Attainment of MA1 Labor and Contract Compliance Program Attached as Exhibit A is a list of all MA1 projects and their status as of February 28, 2023. The summary data from the MA1 Labor Compliance Program, which tracks data through both the Elation Systems database and Oakland’s LCPtracker database, is below.
As of February 28, 2023, the County committed funds to 52 projects under the MA1 Rental Housing Development Program. These projects are in various stages of development: 13 are in predevelopment, 11 are in construction, and 28 projects completed construction and are leasing up or are fully occupied. The table below tracks the number of projects from each of the first four reports, the value of the MA1 investment, and the status of the projects (Completed Projects with full data, In-Construction Projects with data in progress, and Predevelopment Projects with no data or pending data as of the date of this report).
3 Table 1 – Project Summary
For a summary of the 52 projects, including the completed, in-construction, and predevelopment projects under the program, please refer to Exhibit A of this report.
Local Hire: The program continues to exceed the 30% local hire goal for worker hours on MA1 projects. The combined total local hours for completed and in-construction projects is 42% of approximately 2.7 million total worker hours. While the data is tracked by hours and not jobs, , the combined data for completed and in-construction projects show that the MA1 Rental Housing Development Program created over 2000 new jobs since the last report, bringing the total up to over 20,300 jobs (see Table 2 below). Of the total jobs, almost a third employed Alameda County residents. Additional detail on both worker hours and total jobs is reported in detail for Completed Projects under Exhibit B and In-Construction Projects under Exhibit C.
Table 2– Local Hire Employment Opportunities: Completed & In-Construction Projects
46 47 49 50 52$ Value of Measure A1 Investment to these projects$347,144,801 $352,503,736 $360,252,055 $365,268,055 $367,888,055 Construction Completed14 16 18 27 28In Construction Now13 13 13 9 11In Predevelopment19 18 18 14 13# Subject to Prevailing Wage Requirements46 47 49 50 52# Subject to Full Measure A1 Workforce Policies*# Subject to Project Labor Agreements (estimated)8 8 11 11 11Table 1Report #5 thru2/28/202344Measure A1 Rental Projects*8 Emergency-funded projects started before full Requirements adopted by the BOSCurrent Measure A1 Affordable Housing ProjectsReport #4 thru9/30/202242Report #1 thru3/12/2021Report #2 thru6/30/202138 39 41Report #3 thru4/30/2022 Alameda CountyResident Jobs6,645 32.7%Total20,322100%Table 2Total Number of Jobs CreatedCompleted & In-Construction ProjectsReport #5 - thru 2/28/2331 projects, 20* Elation & 11** LCPData from LW005 in Elation & Local Worker Utilization Report by Project in LCP tracker*Elation data includes 20 projects, #’s referenced in Exhibit A: 9,10,11,12,17,18,19,20,23,25,26,27,28,29,31,32,33,37,38,39**LCP Tracker data includes 11 projects, #’s referenced in Exhibit A: 13,14,15,16,21,22,24,30,34,35,36
4 MA1 Labor Compliance Goals & Attainment - COMPLETED PROJECTS
Since inception of the program, 28 affordable housing projects completed construction including the 8 emergency-funded projects (subject only to prevailing wage requirements) and 20 projects subject to the full MA1 Labor and Contract Compliance policies. Exhibit B reports on the 20 completed projects subject to the full MA1 reporting.
Workforce Outcomes – Exhibit B, Tables B-2 - B-5
Exceeded local hire goal: 41% for completed projects, as compared to goal of 30% Exceeded Equity Priority hire goal: 12% as compared to goal of 5%, up from 8% attainment in the last report.
(Equity data is collected from all workers, though self-reporting priority status is optional.) 5,300 jobs were created and filled by Alameda County residents Almost 1,200 new Alameda County apprentice positions were created, representing over 40% of apprentice positions created overall
Small and Local Business Outcomes – Exhibit B, Tables B-6A, B-6B Exceeded local contracting goal: Supported 120 local businesses that secured 394 contracts with payments of $219 million. This represents 154% for completed projects, as compared to goal of 25% (18 of 20 completed projects reporting under MA1 requirements). Exceeded small local contracting goal: Supported 52 small local businesses secured 139 contracts with payments of nearly $74.5 million.
52% for completed projects, as compared to goal of 20% (18 of 20 completed projects reporting under MA1 requirements).
MBE/WBE Tracking – Exhibit B, Table B-7
The Elations Database initially did not include the correct reporting format for MBWB data, which has been fixed. The data below is an under reported number starting from when the Construction Completed2714 16 18Table 3Report #1 thru3/12/2021Report #2 thru6/30/2021Report #3 thru4/30/2022Report #4 thru9/30/2022Measure A1 Rental ProjectsCompleted Projects subject toPrevailing Wage # of Projects subject to the Full A1 Reporting# of Projects subject to the PLA$ Value of Measure A1 Investment 0147 Elation7 LCP Tracker$165,396,140 $87,459,862 $74,702,541 $54,755,306 67 LCP Tracker12 Elation4 Elation2 LCP Tracker0 0 2168 1027194 LCP Tracker7 Elation9 LCP Tracker4 Elation4 LCP Tracker1816 Elation11 LCP Tracker9 Elation9 LCP Tracker6 Elation2$175,096,140 Report #5 thru2/28/202328282017 Elation11 LCP Tracker13 Elation7 LCP Tracker
5 database was fixed.
MA1 resulted in total payments of $4,733,304 to women-owned businesses (WBE) and $10,420,636 to minority-owned businesses (MBE) for those businesses from which MBE/WBE data is available. New reporting and tracking policies implemented by staff since the issue was identified have improved data collection methods for this metric.
Table 4 below shows the percentage of MA1 new affordable housing development workforce by race and ethnicity compared to the percentage of the full County labor market and then the County construction labor market, which provides context to the reporting. Demographic representation in the Alameda County construction workforce was discussed in greater detail in a supplemental report titled “Program Evaluation and Recommendations for the MA1 Pilot Labor and Contract Compliance Program” presented May 15, 2023.
Table 4 – Workforce by Ethnicity: Completed Projects
Staff have begun identifying additional workforce development partners and are beginning conversations with organized Labor to streamline the outreach and referral system and increase the number of Alameda County residents placed in positions created by MA1 Funding.
Collaboration with the City of Oakland contract compliance staff has stalled due to staffing shortages at the City.
Alameda CountyLabor Workforce*Alameda CountyConstruction Trade Workforce**MA1 Labor Workforce***MA1 Labor WFTotal Hours***African American10.6% 4.5% 3.8% 81,446Asian27.7% 9.5% 3.5% 74,524Caucasian35.9% 22.2% 21.1% 449,152Hispanic / Latino21.1% 60.0% 60.7% 1,295,050Native American orAlaskan0.3% 0.5% 0.3% 7,319Other†4.4% 3.4% 10.6% 225,181As of February 28, 2023, 20 Completed projects, (13) Elation and (7) LCPtracker.* Data from alameLFRace2015.xls Line 43 (https://www.labormarketinfo.edd.ca.gov/geography/demoaa.html). 2010 Census data.*** Data from LW043 and LCWU Zip reports. This data is self-reported.†Due to differences in data collected between the LCPtracker system used in Oakland and the Elation system used for the rest of the County, the Other category for MA1 Labor Workforce includes Arab American, Native Hawaiian, Pacific Islander, East Indian/Pakistani, Filipino, Iranian, and Other. Data collected from Elation and LCPtracker is self-reported, and workers may choose "Other" if they are mixed race or decline to state. Whereas, data from the Bureau of Labor Statistics is pulled from census data.** Data from alameEEO.xls Line 79 (https://www.labormarketinfo.edd.ca.gov/geography/demoaa.html) 2010 Census data.Workforce by Ethnicity - Completed ProjectsTable 4
6 MA1 Labor Compliance Goals - PROJECTS IN-CONSTRUCTION
As of February 28, 2023, 11 projects were in construction and subject to all MA1 policies. Seven of these projects report in Elation and four report in LCPtracker, as required by the City of Oakland. Since that date, 3 additional projects have moved into construction. See Exhibit C for details of projects in construction.
For the projects in construction, the data for both worker hours and small and local business represent progress to-date and not final attainment. These numbers will continue to evolve and therefore capturing data for these projects while they are in construction presents an incomplete picture. Rather than aggregating these data points and combining projects that are in construction to those where complete data is provided, this report separates out Completed Project Data from In-Construction Project Data.
Workforce Goals – Exhibit C, Tables C-1 – C-5
Exceeded Local Hire goal to-date: over 44% as compared to goal of 30% Exceeded Equity Priority Hire goal to-date: almost 22% as compared to 5% goal Race and Ethnicity data of the workforce is included
Both the completed and in-construction MA1-funded projects exceed the 30% Local Alameda County Worker Hire and 5% Equity Priority Worker Hire goals.
Small and Local Business Goals
Not reported on for projects in-construction
PROJECTS IN PREDEVELOPMENT
As of February 28, 2023, 13 projects were in predevelopment, including 6 projects that are anticipated to start construction over the next six months. These projects will produce no data until construction begins, at which time they will move into the “In Construction” section of this report. For details on which projects are in predevelopment see Exhibit A.
Projects In-Construction(partial reporting)# Projects reporting in Elation# of projects reporting in LCPtracker# of Projects subject to the PLA$ Value of Measure A1 Investmentof these projects$110,153,651 Measure A1 Rental ProjectsReport #5 thru2/28/202311743$94,371,814 95435 5 413Table 5Report #1 thru3/12/2021Report #2 thru6/30/2021Report #3 thru4/30/2022Report #4 thru9/30/20222 3 5$110,908,247 $112,793,599 $134,331,918 13 138 8 9
7 Of the 13 projects in the predevelopment phase of February 28, 2023, 3 since closed their construction loans and entered construction. Two more projects expect to close construction financing in the next 6 months, and 1 additional project entered predevelopment, bringing the total up to 53 MA1-funded projects. During this time period, staff conduct pre-construction meetings to explain the program and train the developers, general contractors, and subcontractors who will be engaged on those projects. County staff refined and modified the subcontractor selection process to more accurately forecast attainment of MA1 Labor and Contract Compliance Program goals, which provides the developer and general contractor time to correct any projected deficiencies in goal attainment.
PREVAILING WAGE REQUIREMENT
All MA1 Rental Housing Development Program-funded projects are monitored for applicable local, state, and federal prevailing wage requirements. All projects, both completed and in construction, have met this requirement.
Project Labor Agreements
The MA1 Rental Housing Implementation Policies require new construction projects with 80 or more units to enter into private Project Labor Agreements. The first 2 projects with private project labor agreements (PLA) completed construction. Currently, there are 3 projects in construction subject to the Project Labor Agreement requirement. The total construction contract value of those 5 projects is $543,034,465. Due to the high degree of variation of the individual projects, staff are unable to draw any conclusions regarding the Project Labor Agreement requirement. For further details see Exhibit D.
Estimated # of Projects subject to the PLA$ Value of Measure A1 Investment to these projectsReport #5 thru2/28/2023135$82,638,264 Projects in Predevelopment(no labor reports yet)145$105,500,101 $181,481,248 $165,007,596 $138,460,275 Table 6Report #4 thru9/30/20226 6 619 18 18Report #1 thru3/12/2021Report #2 thru6/30/2021Report #3 thru4/30/2022 Table D-3Projects Combined91,046 - 17%30% Local Hire Goal†217,585 - 41%25% Local Contracting Goal$83,897,400 - 285%Project Labor AgreementsMeasure A1 Attainment*Completed Projects refer to Exhibit A table #19,22Measure A1 Completed PLA Projects*PLA Completed Project Summary†Reflected in hours20% Small Local Contracting Goal$2,318,162 - 81%5% Equity Priority Hire Goal†
8 Labor RequirementsLabor Compliance Status1Camino 23 (SAHA in Oakland) Emergency-FundedMove in Ready2Fruitvale Transit II-A/Casa Arabella (EBALDC in Oakland) Emergency-FundedMove in Ready3Coliseum Connections (UrbanCore in Oakland) Emergency-FundedMove in Ready43706 San Pablo/Estrella Vista (EAH in Emeryville/Oakland) Emergency-FundedMove in Ready5Eagle/Everett Commons (Alameda Housing Authority in Alameda) Emergency-FundedMove in Ready6Grayson Street Apartments (SAHA in Berkeley) Emergency-FundedMove in Ready7Kottinger Gardens Phase II (MidPen in Pleasanton) Emergency-FundedMove in Ready8San Leandro Senior/La Vereda (Bridge in San Leandro) Emergency-FundedMove in Ready9Embark Apartments (RCD in Oakland) - (Additional A1 funds approved by the BOS on February 5, 2019 and project required to comply with full A1 Labor and Contract Compliance Policies)MA1 Move in Ready10 Alameda Point Senior/Corsair Flats (Eden Housing in Alameda)MA1 Move in Ready11Chestnut Square Family Apartments (Eden Housing in Livermore)MA1 Move in Ready12Sunflower Hill @ Irby Ranch (SAHA in Pleasanton)MA1 Move in Ready13Empyrean & Harrison (RCD in Oakland)MA1 Move in Ready14Monarch Homes/3268 San Pablo (SAHA in Oakland)MA1 Move in Ready15Aurora Apartments (Affirmed Housing in Oakland)MA1 Move in Ready16NOVA Apartments (Affirmed Housing in Oakland)MA1 Move in Ready17Bermuda Gardens (Mercy Housing in Ashland)MA1 Move in Ready18City Center Apartments (Allied in Fremont)MA1 Move in Ready192012 Berkeley Way (Bridge in Berkeley)MA1 Move in Ready20Avance - Sunflower Hill (MidPen Housing in Livermore)MA1 Move in Ready21Coliseum Place (RCD in Oakland)MA1 Move in Ready22Foon Lok West (MidPen Housing in Oakland)MA1 Move in Ready23 Alameda Site A Family Apartments (Eden Housing in Alameda)MA1 Move in Ready24Fruitvale Studios (Allied in Oakland)MA1 Move in Ready25Jordan Court - 1601 Oxford Street (SAHA in Berkeley)MA1 Move in Ready26Parrott Street Apartments (Eden Housing in San Leandro)MA1 Move in Ready27Rosefield Village (Alameda Housing Authority in Alameda)MA1 Move in Ready28Granite Ridge Apartments (Eden Housing in Fremont)MA1 Move in Ready Project, Developer and LocationExhibit AMeasure A1 Rental Housing Development Program - Project ListReporting Period: Program Inception (early 2019) through February 28, 2023COMPLETED PROJECTS - 28*
9 29Depot Community Apartments (Allied in Hayward)MA1 Active/monitoring30Fruitvale Transit Village Phase IIB (Bridge/Unity Council in Oakland)MA1 Active/monitoring31Irvington Senior (Allied in Fremont)MA1 Active/monitoring32Vineyard (HCEB in Livermore)MA1 Active/monitoring3334320 Fremont Blvd Family Housing (Allied in Fremont)MA1 Active/monitoring342227 International - Ancora Place (SAHA in Oakland)MA1 Active/monitoring35West Grand & Brush (EBALCD in Oakland)MA1 Active/monitoring367th & Campbell (OAW & MBS in Oakland)MA1 Active/monitoring37Albany Family (SAHA in Albany)MA1 Active/monitoring38Bell Street Gardens (RCD in Fremont)MA1 Active/monitoring39Mission Paradise (EAH in Hayward)MA1 Active/monitoring40Ruby Street Crescent (Eden in Uninc. County)MA1 Pending41Madrone Terrace (RCD in Ashland (Uninc. County))MA1Pre-construction in progress421245 McKay (APC/Mercy Housing in Alameda)MA1Pre-construction in progress43Downtown Livermore Apartments (Eden in Livermore)MA1Pre-construction in progress44Pimentel Place / Matsya Village (EAH in Hayward)MA1Pre-construction in progress45Timber Senior Housing (Eden in Newark)MA1Pre-construction in progress46Amador Station Phase I (BRIDGE Housing in Dublin)MA1 Pending47Lazuli Landing (MidPen in Union City)MA1 Pending48Pacific Avenue Senior Homes (SAHA in Livermore)MA1 Pending49Regional Street (Eden in Dublin)MA1 Pending5015101 Washington Avenue (San Leandro)MA1 Pending518530 Edes Ave (Homekey in Oakland)MA1 Pending528452 Edes Ave (Homekey in Oakland)MA1 Pending* It may take up to 1 year for construction payment data to become final for completed projects.
PRE-DEVELOPMENT PROJECTS - 13IN-CONSTRUCTION PROJECTS - 11
10 Exhibit B – Completed Projects
MA1 Wage and Workforce Report
Reporting Period: Program inception to February28, 2023
Completed Projects Full A1 Labor Contract Compliance Reporting: 20
Table B-1 – Completed Projects: Subject to MA1 Labor Compliance Requirements Of the 28 Completed projects, 20 were subject to full reporting per the adopted policies.
Table B-1 Name of ProjectElationLCP Tracker1 Alameda Point Senior/Corsair Flats (Eden Housing in Alameda) X2 Chestnut Square Family Apartments (Eden Housing in Livermore) X3 Sunflower Hill @ Irby Ranch (SAHA in Pleasanton) X4 Embark Apartments (RCD in Oakland) X5 Bermuda Gardens (Mercy Housing in Ashland) X6 City Center Apartments (Allied Housing in Fremont) X7 Avance - Sunflower Hill (MidPen Housing in Livermore) X8 Alameda Site A Family Apartments (Eden Housing in Alameda) X9 Jordan Court (SAHA in Berkeley) X10 Parrott St. / Loro Landing Apts (Eden Housing in San Leando) X11 Rosefield Village (Alameda Housing Authority in Alameda) X12 2012 Berkeley Way (Bridge in Berkeley) X13 Granite Ridge Apartments (Eden in Fremont) X14 Empyrean & Harrison (RCD in Oakland) X15 Monarch Homes/3268 San Pablo (SAHA in Oakland) X16 Aurora Apartments (Affirmed Housing in Oakland) X17 NOVA Apartments (Affirmed Housing in Oakland) X18 Coliseum Place (RCD in Oakland) X19 Foon Lok West (MidPen Housing in Oakland) X20 Fruitvale Studios (Allied in Oakland) X
11 Table B-2 – Local Hire Employment Opportunities: Completed Projects
Table B-3 – Employment Opportunities: Completed Projects
Report #1 - thru3/12/21Report #2 - thru6/30/21Report #3 - thru4/30/22Report #4 - thru9/30/22Report #5 - thru2/28/23All Jobs / Employees(4 completed projects,Elation)(7 completed projects,Elation & LCP)(10 completed projects,6 Elation & 4 LCP)(19 completed projects,12 Elation & 7 LCP)(20 completed projects,13 Elation & 7 LCP)Total WorkerHours325,509 725,695 857,422 2,040,595 2,143,282Minimum 30%Local Hire Goal97,653 217,708 257,227 612,179 642,985Actual Local HireConstruction Hours110,812 327,624 383,688 861,174 881,351Attainment onCompleted Projects34% 45% 45% 42% 41%Data from Mis250 in Elation & LCWU in LCP trackerTable B-2 Local Hire Employment Opportunities for Completed ProjectsTotal Worker Hours - Goal is 30% Alameda CountyResidents5,300 32.8%Total16,174 100%Data from LW005 in Elation & Local Worker Utilization Report by Project in LCP tracker*Elation data includes 13 projects, #’s referenced in Exhibit A: 9,10,11,12,17,18,19,20,23,25,26,27,28**LCP Tracker data includes 7 projects, #’s referenced in Exhibit A: 13,14,15,16,21,22,24Table B-3Number of Local Jobs CreatedCompleted ProjectsReport #5 - thru 2/28/2320 completed projects, 13 Elation* & 7 LCP**
12 Table B-4 – Equity Priority Hire Goal
Definitions:
“Local Hire” defined as a worker who lives within Alameda County “Equity Priority” defined as a low-income (80% or below AMI) worker who lives within Alameda County and who may also meet additional requirements outlined later in Exhibit E.
Workforce by Local Apprentice & New Hires
New tools developed and implemented by staff have been increasing the granularity and accuracy of data over the last two reporting cycles. The first projects to use these tools for all subcontractors and all workers on the project moved from preconstruction into the construction phase just after the last report, January 2023 report. These tools will be utilized on all projects subject to MA1 reporting requirements moving forward. Data included in this report is beginning to show the results of these efforts regarding Equity Priority hire, including that of apprentices in their first and second years. More work is needed to accurately track apprenticeship levels as they are calculated differently between trades. Staff is working to address this issue.
Total Hire Hours325,509 325,509 899,009 2,040,515 2,143,282Alameda County Equity PriorityHire Hours29,425 34,982 86,618 167,383 257,512Attainment9% 11% 10% 8% 12%Mis250 and Disadvantaged Worker Elation reports; Payroll Details LCPtracker reportReport #5 - thru 2/28/2313 Elation & 7 LCPReport #1 - thru 3/12/214 Elation CompletedReport #2 - thru 6/30/214 Elation CompletedReport #3 - thru 4/30/226 Elation & 4 LCPTable B-4Report #4 - thru 9/30/2212 Elation & 7 LCPEquity Priority Hire Goal 5% - Completed Projects
13 Table B-5 – Workforce by Local Apprentice & New Hires: Completed Projects As of February 28, 2023, 20 Completed projects in (13) Elation and (7) LCPtracker
Earlier coordination with the City of Oakland improved access to some data used for creating these reports. Staff are now able to report on total jobs created for projects located in Oakland, but are not yet able to track new hires, distinguish between certain variables for apprentice classifications, or document compliance with certain aspects of the outreach requirements in LCPtracker. Coordination with Oakland has not progressed recently due to staffing shortages within the City of Oakland but will continue once the positions have been filled.
Table B-6 – Contracting with Local and Small Business: Completed Projects As of February 28, 2023, 18 of 20 completed projects in Elation
Local Apprentice(Alameda County Resident)216,20813 Elation & 7 LCP10.9%119713 Elation & 7 LCP7.4%Total New Hires153,76513 Elation7.8%94913 Elation8.8%Total Apprentice247,02313 Elation & 7 LCP12.5%297113 Elation & 7 LCP18.4%# of Workers Worker %Data from LW043,Local Worker Utilization and Payroll Details reports.Table B-5 Workforce by Local Apprentice and New HiresCompleted ProjectsTotal Hours Hours % Table B-6A120$219,127,782$142,270,837154%Contracting with Local Business- Goal 25%Local Businesses in Alameda CountyTotal Payments to LOCAL BusinessTotal Measure A1 InvestmentAttainmentDefinition: These businesses may include but are not limited to professional service sub-contracts, the prime general contractor and/or any of the construction related subcontractors.Data from BU031 report in Elation 18 projects, #’s referenced in Exhibit A: 10,11,12,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28
14 Many businesses appear to qualify as a small local business but are not certified. Contracts with these uncertified small local businesses can make the difference between attainment or nonattainment of the MA1 small local business contracting and payments goals. Contracts with uncertified small local businesses are not currently counted towards goal attainment. Staff created working partnerships with State SBE certifying agencies and are examining administrative approaches to encourage County SLEB certification and higher utilization of SLEB certified companies in contracting. This topic will be discussed in further detail in a future supplemental report.
Contracting with Minority (MBE) and Women (WBE) Owned Businesses
The MA1 implementation guidelines do not specify goals for contracting with minority and women owned businesses (MBE/WBE), as such would be prohibited under Prop 209. The Board of Supervisors requested HCD staff keep them apprised of total contract amounts and percentage of contract dollars awarded to minority and women owned businesses. The topic of barriers and increasing MBE/WBE participation are discussed in an upcoming supplemental report.
Staff were able to capture MBE/WBE data for some projects in this report; however, limitations in past data collection methods likely resulted in underreporting.
Table B-6B52$74,479,286$142,270,83752%Data from BU031 report in Elation 18 projects, #’s referenced in Exhibit A: 10,11,12,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28Contracting with Small Local Business- Goal 20% * Definition: State Small Business Enterprise (SBE) certification, City of Oakland (SLBE) certification, Alameda County Small, Emerging and Local Business (SLEB) certification, Port of Oakland, California Public Utilities Commission (CPUC) Supplier Clearinghouse, and Alameda County Transportation Commission are all acceptable as verification of “small” status of local businesses.AttainmentSmall Local Businesses in AlamedaTotal Payments to Local SMALL BusinessTotal Measure A1 Investment
15 Table B-7 and B-8
Contracting with Women (WBE) and Minority (MBE) Owned Businesses
Completed Projects: 18 of 20
WBE on MA1Projects% of Businesses on MA1 ProjectsTotal Payments to WBE% of MA1FundsUnique WBE on MA1 Projects14 2.90% $4,733,304 3.33%WBE Contracts on MA1 Projects45 4.16% $4,733,304 3.33%Alameda County Unique WBE on MA1 Projects2 0.41% $1,091,210 0.77%Alameda County WBE Contracts on MA1 Projects10 0.92% $1,091,210 0.77%Women Owned Business (WBE) ReportingAs of 2/28/2023, Data from BU031 report in ElationTable B-7Data includes 18 projects, #’s referenced in Exhibit A: 10,11,12,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28As of 2/28/2023, Data from BU031 report in ElationMBE on MA1Projects% of Businesses on MA1 ProjectsTotal Payments to MBE% of MA1FundsUnique MBE on MA1 Projects23 4.77% $10,420,636 7.32%MBE Contracts on MA1 Projects89 8.22% $10,420,636 7.32%Alameda County Unique MBE on MA1 Projects11 2.28% $5,885,172 4.14%Alameda County MBE Contracts on MA1 Projects49 10.17% $5,885,172 4.14%Minority Owned Business (MBE) ReportingTable B-8Data includes 18 projects, #’s referenced in Exhibit A: 10,11,12,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28As of 2/28/2023, Data from BU031 report in Elation
16 Exhibit C –Projects Currently In-Construction
Measure A1 Wage and Workforce Report
Reporting Period: Program inception to February 28, 2023
In-Construction Projects Full MA1 Labor Contract Compliance Reporting:
These projects are in construction; data is incomplete until construction is finished.
Table C-1 – Employment Opportunities: In-Construction Projects
Table C-2 – Employment Opportunities: In-Construction Projects
Report #1 - thru 3/12/21Report #2 - thru 6/30/21Report #3 - thru 4/30/22Report #4 - thru 9/30/22Report #5 - thru 2/28/23Number of Projects In-Construction8 projects,Elation13 projects,Elation & LCP13 projects,9 Elation & 4 LCP9 projects,5 Elation & 4 LCP*11 projects,7 Elation & 4 LCP4,079 total jobs(2,427 in Elation,1,652 in LCP)232,213 629,747 1,292,949 378,587 525,85230% Local Hire Goal69,664 188,924 387,885 113,576 157,756Actual Local HireConstruction Hours87,103 262,438 521,599 147,220 232,106Final Performance37.5% 42.0% 40.3% 38.9% 44.1%Total Hours - In-ConstructionTable C-1Data from Mis250, LocalWorkerUtilization, LW043, and LCWU Zip reportsTable C-21,345 32.4%4,148 100%Data from LW005 in Elation & Local Worker Utilization Report by Project in LCP tracker*Elation data includes 7 projects, #’s referenced in Exhibit A: 29,31,32,33,37,38,39**LCP Tracker data includes 4 projects, #’s referenced in Exhibit A: 30,34,35,36Alameda CountyResidentsTotalNumber of Jobs CreatedIn-ConstructionProjectsReport #5 - thru 2/28/2311 In-Construction projects, 7 Elation & 4 LCP Employment Opportunities
17 Table C-3 – Equity Priority Hire: In-Construction Projects
Data on Workforce by Local Apprentice and New Hire is pending for in-construction projects.
Table C-4 – Workforce by Ethnicity: In-Construction Projects As of February 28, 2023, 11 In-Construction projects, (7) Elation and (4) LCPtracker.
Local and Small Local Business - In-Construction Projects
Staff continue to monitor payments to local and small businesses during construction, however due to the variability in the phasing of subcontractors’ scopes of work during construction, and the variability in timing for confirmation of payments for any given project within Elation, data for In-Construction Projects are subject to change until projects complete construction.
Table C-3Total Hire Hours209,862 432,687 836,174 255,181 288,286Alameda CountyEquity Priority Hire Hours20,455 39,749 87,163 27,357 39,210Final Performance9.0% 9.0% 10.4% 10.7% 8.2%Report #4 - thru9/30/225 In-ConstructionElationIn-ConstructionProjectsReport #1 - thru3/12/218 In-ConstructionElationReport #2 - thru6/30/2110 In-ConstructionElationData from Mis250, Disadvantaged Worker Elation reports and Payroll Details LCPTracker ReportsReport #3 - thru 4/30/229 In-ConstructionElationReport #5 - thru2/28/237 In-ConstructionElationEquity Priority Hire - 5%Ethnicity BreakdownAfrican American10.6% 4.5% 3.3% 17,540Asian27.7% 9.5% 2.7% 14,143Caucasian35.9% 22.2% 19.6% 102,928Hispanic / Latino21.1% 60.0% 63.1% 331,652Native American orAlaskan0.3% 0.5% 0.5% 2,477Other†4.4% 3.4% 10.9% 57,130* Data from alameLFRace2015.xls Line 43 (https://www.labormarketinfo.edd.ca.gov/geography/demoaa.html)* * Data from alameEEO.xls (https://www.labormarketinfo.edd.ca.gov/geography/demoaa.html)As of February 28, 2023, In-Construction projects, (7) Elation & (4) LCP Tracker†Due to differences in data collected between the LCPtracker system used in Oakland and the Elation system used for the rest of the County, the Other category for MA1 Labor Workforce includes Arab American, Native Hawaiian, Pacific Islander, East Indian/Pakistani, Filipino, Iranian, and Other.* * * Data from LW043 & LCWU Zip reports, data on 29,30,31,32,33,34,35,36,37,38,39.MA1 LaborWFTotal Hours***MA1ConstructionLaborWorkforce***Alameda CountyConstructionTradeWorkforce**Alameda CountyLabor GeneralWorkforce*Table C-4
18 Exhibit D
Project Labor Agreements
MA1 Policy Requirement: all new construction of affordable housing projects that are 80 units or larger and funded by MA1 shall have a Project Labor Agreement.
Table D-1 – In-Construction Projects with a Private Project Labor Agreement (PLA)
Table D-2 - PLA Summary
Table D-1123Depot Community (Allied in Hayward)Irvington Senior (Allied in Fremont)Fruitvale Transit Village IIB (Bridge in Oakland)In-Construction Projects with aPrivate Project Labor Agreement (PLA)Table D-2 **In-Construction Projects refer to Exhibit A table #29,30,31S/LEB contracts in PLA Projects #Measure A1 Rental Projects5Projects with 80+ Units New Construction (subject to PLA)Project Labor AgreementsPLA Summary174 Total126 LBE and 48 SLEB‡HCD staff does not have the ability to monitor PLAs, but can track 1st and 2nd year apprentices for LCP projects.†New Apprentices. One new apprentice shall be hired for each $5 million in Covered Project cost.Requirement: All new construction of affordable housing projects that are 80 units or larger andfunded by Measure A1 shall have a Project Labor Agreement23$543,034,465Completed Projects*In-Construction Projects**Total PLA Construction Contract ValueGoal: 109‡107 Total74 LBE and 33 SLEB$133,097,981New Apprentices in PLA Projects†S/LEB contractors in PLA Projects #S/LEB contractors $ Value in PLA Projects*Completed Projects refer to Exhibit A table #24,26
19 Table D-3 - PLA Completed Project Attainment Summary
Table D-3Projects Combined91,046 - 17%30% Local Hire Goal†217,585 - 41%25% Local Contracting Goal$83,897,400 - 285%Project Labor AgreementsMeasure A1 Attainment*Completed Projects refer to Exhibit A table #19,22Measure A1 Completed PLA Projects*PLA Completed Project Summary†Reflected in hours20% Small Local Contracting Goal$2,318,162 - 81%5% Equity Priority Hire Goal†
20 Exhibit E
MA1 Labor and Contract Compliance Terms and Conditions Overview:
MA1 requires paying State Prevailing Wages, the increased hire of local and local equity priority workers, and increased contracting with local and small local construction businesses. The MA1 policies for local and small local construction businesses incorporates some provisions of the County’s SLEB program, but it is not the same as the SLEB program. The following is an overview of the major terms and conditions of the MA1 Labor and Contract Compliance policies and procedures with which each project is required to comply.
A. State Prevailing Wages Rates
B. Employment of Local and Equity Priority Residents:
1. 30% Local Worker Hire Goal. 30% of all construction hours worked on the project shall be performed by residents of Alameda County.
2. 5% Equity Priority Hire Goal. 5% of all construction hours worked on the p roject.
C. Contracting with Local and Small Local Construction Businesses:
1. 25% Local Contracting Goal: An amount equal to 25% of the amount of the Measure A1 contract shall be paid to Alameda County-based businesses.
2. 20% Small Local Contracting Goal: An amount equal to 20% of the amount of the Measure A1 Contract, shall be paid to certified small Alameda County-based businesses.
D. Requirements for Outreach to Local and Equity Priority Workers and to Local and Small Local Businesses.
E. Reporting on HUD Section 3 requirements for new hire of low-income residents.
F. Reporting on Minority Owned Business Enterprise/Woman Owned Business Enterprise (MBE/WBE) utilization.
G. Project Labor Agreement required for new construction of Rental Housing projects that are 80 units or larger.
21 Definitions
Payment of State Prevailing Wage Rates are required:
Contractors shall ensure they and their employees know the correct prevailing wage rates for every classification employed on the Project and update wages throughout the year when state and federal prevailing wage rates are updated. When Federal Davis-Bacon prevailing wage is also required on the project, both wage rates are monitored. The higher of the two per trade applies.
Equity Priority Workers are residents of Alameda County with incomes below 80% of Area Median Income, and who may also meet any of the following:
a. Are apprentices in any construction trade with two years or less participation; b. Are current or past participants in Apprenticeship Readiness Programs serving Alameda County residents, including but not limited to Cypress Mandela Training Center and Rising Sun Energy Center;
c. Are current or past participants in Pre-Apprenticeship Programs serving Alameda County residents, including but not limited to Youth Employment Partnership, or construction training programs at the community college level; d. Are recipients of public assistance;
e. Belong to any of the target populations in Alameda County identified in the Measure A1 program, including:
i. Re-entry individuals;
ii. Homeless or formerly homeless individuals living in homeless housing; iii. Veterans;
iv. People with disabilities;
v. Seniors; and
vi. Transition-age foster youth.
Local Business:
A business with a verifiable physical fixed office and street address in Alameda County for at least six (6) months prior to the publication date of the bid to which the business responded. The business must also hold a valid business license issued by the County or a City within the County.
MBE/WBE:
Minority Business Enterprise (MBE) means a business enterprise that is at least 51% owned and controlled by one or more minority or socially and economically disadvantaged persons. Such disadvantage may arise from cultural, racial, chronic economic circumstances or other similar causes.
Women’s Business Enterprise (WBE) is an independent business concern that is at least 51% owned and controlled by one or more women who are U.S. citizens or Legal Resident Aliens; whose business formation and principal place of business are in the U.S. or its territories; and whose management and daily operation is controlled by a woman with industry expertise.
To learn more about the Minority Business Enterprise and Women Business Enterprise programs, please contact HUD’s Office of Small and Disadvantaged Business Utilization at 202- 708-1428, or visit their website, located at: https://www.hud.gov/program_offices/sdb
22 Small Local Business:
A Local Business (as defined above) that also possesses Small Business Enterprise (SBE) certification from any of the following agencies at the time of bid submission to the General Contractor.
1. Alameda County SLEB (Small, Local & Emerging Businesses) https://www.acgov.org/sleb_query_app/gsa/sleb/query/slebmenu.jsp
2. Many Alameda County businesses qualify for this SLEB certification, but do not apply.
We highly encourage business owners with a physical location(s) within Alameda County to apply by filling out a simple form. It may take up to 60 days to obtain the certificate, so apply immediately. Having the certification, and keeping it valid, is an excellent way to get access to many Alameda County bid opportunities and the potential to generate new business. There is a weekly SLEB Outreach Event anyone can join to learn more, get help, and ask questions about the program. It’s an online webinar where participants join via Microsoft Teams or by phone.
To see dates and times, and to register click here.
3. City of Oakland SLBE
https://apps.oaklandca.gov/contractcompliance/Contractors.aspx
4. Port of Oakland
https://srd.portofoakland.com/index.aspx
5. California Department of General Services
https://caleprocure.ca.gov/pages/PublicSearch/supplier-search.aspx
6. California Public Utilities Commission (CPUC) Supplier Clearinghouse https://sch.thesupplierclearinghouse.com/FrontEnd/SearchCertifiedDirectory.asp
7. Alameda County Transportation Commission
https://www.alamedactc.org/app_pages/view/4543; click on link under “Certified Firms”
ALAMEDA COUNTY COMMUNITY DEVELOPMENT AGENCY
HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
Sandra Rivera
Agency Director
Michelle Starratt
Housing Director
224 West Winton Ave
Room 108
Hayward, California
94544-1215
phone
510.670.5404
fax
510.670-6378
TTY
510.265.0253
www.acgov.org/cda
MEMORANDUM
TO: Procurement and Contracting Committee
Chair Supervisor Miley, District 4
Supervisor Marquez, District 2
CC: All members of the Board of Supervisors
FROM: Sandra Rivera, Director, Community Development Agency Michelle Starratt, Housing Director, Housing and Community Development
DATE: March 18, 2024
SUBJECT: Report #6 on the Measure A1 Labor Compliance Program for Affordable Housing Projects (2023 Calendar Year Update)
BACKGROUND
The Board of Supervisors approved the Measure A1 (MA1) Implementation Policies for the Rental Housing Development Fund on November 7, 2017. These policies included requirements for prevailing wages, local/disadvantaged workforce hire goals and local and small local business contracting goals.
The Community Development Agency’s (CDA’s) Housing and Community Development Department (HCD) has presented progress towards these goals in reports made to this Committee in five previous Reports: #1 on May 17, 2021 (reporting through March 1, 2021), #2 on September 20, 2021 (reporting through June 30, 2021), #3 on July 18, 2022 (reporting through April 30, 2022), #4 on January 23, 2023 (reporting through September 30, 2023), and #5 on July 17, 2023 (reporting through February 28, 2023).
This Report #6 focuses on the 2023 calendar year, from January 1 – December 31, 2023. As of December 31, 2023, the County has committed funds to 55 projects under the MA1 Rental Housing Development Program. The Annual Report focuses on thirty- one (31) projects that were active during the reporting period. At the beginning of 2023, 13 projects were in predevelopment, of which three (3) began construction and one new project was added. Of the projects that started the year in construction, four (4) completed construction. A total of six (6) projects were fully leased up and transferred to HCD’s Asset Management team for long-term monitoring.
Staff are able to report on labor, workforce, and payments data once projects begin construction; however, due to the certified payment confirmation process, it can take a significant amount of time after the completion of construction for a project’s data to become final. Therefore, data in Reports made to this Committee is always subject to revisions and/or updates in subsequent reports.
For a list of current and upcoming projects and their status as of 12/31/23, please see Exhibit A.
Specific Highlights:
• $248 million of Measure A1 Investment on all projects active during the 2023 calendar year, up from $100M during 2022.
• 1,596 units in 31 projects completed construction, were completed and leased, or were in construction during 2023.
• 50% of total MA1 investment on projects during 2023 went to Alameda County- based businesses, double the 25% Goal set by the Board. • The Measure A1 projects which were completed in 2023 leveraged $46.9 million of MA1 funds into a total of $195.7 million in investment in affordable housing construction in Alameda County.
• On Measure A1-funded projects, over $124 million went to local Alameda County-based businesses from all funding sources (not just Measure A1). This represents over 55% of all payments made this year on these projects. • 36% of construction labor hours were performed by Alameda County residents, surpassing the 30% Goal set by the Board.
• Over 4,900 construction jobs on MA1-funded projects in 2023. • Over 30% of all Journey Person hours and over 50% of all Apprentice hours performed were worked by Alameda County residents.
HOUSING GOALS AND ATTAINMENT
As of December 31, 2023, the 55 Measure A1-funded projects comprise 4,179 units of housing in all stages of development. This exceeds the original Measure A1 goal of 3800 new affordable housing units.
During the reporting period, staff worked on 2,693 units: 434 new units were completed, 238 began lease up and close out, and 924 units were in-construction. 1,097 units are in the pre- development stage.
Progress on Goal Attainment of MA1 Labor and Contract Compliance Program As of December 31, 2023, eleven (11) projects are in predevelopment, fourteen (14) projects are in construction, and six (6) projects completed construction and are occupied.
Table 2 – Project Summary
For a summary of the thirty-one (31) projects, including the completed, in-construction, and predevelopment projects active during the reporting period and their status as of December 31, 2023, please refer to Exhibit A of this report.
ADOPTED GOALS AND ATTAINMENT
Reporting Summary
The County of Alameda utilizes various databases to collect information for MA1-funded projects. City Data Services (CDS) is utilized for all projects to collect information regarding funding. For all data related to business goals (goals measured in dollars) including payments and contracting, the County requires use of Elation Systems. For data collection related to labor and workforce goals (goals measured in hours) including labor hours, workforce diversity information, and apprenticeship information, there are two (2) databases utilized, dependent on funding source.
Most projects which receive MA1 funding use Elation Systems for project reporting. For projects that also receive funding from the City of Oakland, the County has made an allowance for the use of LCPTracker, which the City requires. The City of Oakland has entered into an agreement to share data with the County regarding MA1 funds. As Elation Systems and LCPTracker do not capture the same data, not all information is available for all projects. For the aspects of this
report which touch on aggregate data between both Elation Systems and LCPTracker, some fields have been aggregated or may not be available.
Attached as Exhibit B (Tables B1-B3) is a list of all MA1 projects active during the reporting period and the system utilized for reporting.
Requirements and Goals
Requirements
The MA1 Implementation Policies require the payment of State Prevailing Wages, the increased hire of local and local equity priority workers, and increased contracting with local and small local construction businesses. The MA1 policies for local and small local construction businesses incorporate some provisions of the County’s SLEB program. This is a summary of the major terms and conditions required by the MA1 Labor and Contract Compliance policies adopted by the Board.
• Payment of State Prevailing Wages
• Employment of Local and Equity Priority Workforce
• Contracting with Local and Small Local Businesses
• Reporting on Minority Owned Business Enterprise (MBE) utilization • Reporting on Women Owned Business Enterprise (WBE) utilization • Private Project Labor Agreement required for Rental Housing projects that have 80+ new construction units.
Goals
Measured in Dollars
• Local Contracting Goal: 25% of MA1 funds
• Small Local Contracting Goal: 20% of MA1 funds
Measured in Hours
• Local Hire Goal: 30% of construction labor hours
• Equity Priority Hire: 5% of construction labor hours
For a more complete explanation of MA1 Policies and Procedures Requirements, Goals, and Definitions, please reference Exhibit D.
MA1 Business Goal Attainment of MA1 Labor and Contract Compliance Program MA1 investments are used for the construction portion of a project’s lifecycle. MA1 funds are part of a general funding pool and cannot be tracked separately from the pool. For this reason, staff are not able to report on which portion of funds can be allocated to the 2023 calendar year.
Staff can report on dollar amounts dispersed, the percentage of payments made during the calendar year, and the percentage of the total amount of MA1 investment on a given project. The table below, the final column represents the annual amount of confirmed payments, while the second from the end represents all payments from the inception of the program to the end of 2023.
Table 3 - Contracts and Payments Activity
*Refers to Project Numbers 20, 22, 23, 24, 27, 28 in Exhibit A ** Refers to Project Numbers 24, 28 in Exhibit A
*** Refers to Project Numbers 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, in Exhibit A
Payment data for Completed Projects may take up to a full year to finalize due to payments being confirmed after construction is completed. Since construction can take up to two years, payments (and the confirmations of payments) may be reported in different years, and as a result payments data can fluctuate greatly from year to year.
During the 2023 calendar year, six (6) affordable housing projects completed construction and were turned over to Asset Management, all subject to the full MA1 Labor and Contract Compliance policies. The $46.9 million investment of MA1 funds for projects which completed in the 2023 calendar year was leveraged into $195.7 million in investment in affordable housing construction in Alameda County.
Table 4 – Business Goals
*MA1 funds are allocated as part of a pool of funds and cannot be calculated on an annual basis.
Business Goals, including Local and Small Local Contracting Goals, are based on contracts awarded as a percentage of MA1 funds allocated to a project, and are a requirement of the finished project. Therefore, for active projects, staff can only report on progress, which is usually not linear. The above chart demonstrates achieving double the Local Contracting Goal, while falling short of Small Local Contracting by 8%.
For a more complete breakdown of funds dispersed during the reporting period to Local and Small Local Businesses by project phase, please refer to Tables B-4 – B-4.2 in Exhibit B.
Reporting on Priority Business Enterprises
The MA1 implementation policies do not require specific goals for contracting with minority and women owned businesses; however, the Board has requested HCD staff to regularly report on total contract amounts and percentage of contract dollars awarded to Minority Owned Business Enterprises (MBE), Women Owned Business Enterprises (WBE), and projects owned by other priority business enterprises (MBE/WBE).
The Elation Database initially did not include the correct reporting format for priority business data, which has been updated. Staff were able to capture MBE/WBE data for some projects in this report; however, limitations in past data collection methods likely resulted in underreporting.
The data below represents payments made as of when the database was updated. MA1 resulted in total payments of $5,233,857 to WBE’s and $6,010,491 to MBE’s during the 2023 calendar year. New reporting and tracking policies implemented by staff since the issue was identified have improved data collection methods for this metric.
Table 5 – Priority Business Tracking
*Total MA1 contribution on represented projects
** Emerging Business status had recently started being tracked, though offering the data is voluntary
HCD staff now also tracks Emerging Business Entity status among Small Local Business Entities, with data provision being voluntary. This initiative is part of a broader effort to understand and improve outreach efforts to these priority businesses and increase diversity in contracting, with further analysis and strategies to be discussed in an upcoming supplemental report.
Priority Business Tracking - For a breakdown of funds dispersed in 2023 towards priority businesses by construction phase, please refer to Exhibit B, Tables B-5.1-5.2.
MA1 Workforce Goal Attainment of MA1 Labor and Contract Compliance Program
Prevailing Wage Requirement
All MA1 Rental Housing Development Program-funded projects are monitored for applicable local, state, and federal prevailing wage requirements. All projects, both completed and in construction, have met this requirement.
Table 6– Prevailing Wage Reporting
*4 projects in construction, close out, or completed during 2023 have PLAs. 6 projects in Predevelopment are currently subject t o PLAs
The MA1 Rental Housing Implementation Policies require affordable housing construction projects which include 80 or more new construction units and are funded by MA1 to enter into private Project Labor Agreements (PLA). During the reporting period, 1 project with a private PLA completed construction. Currently, there are 3 projects in construction subject to the PLA requirement, and 6 projects in the predevelopment stage. The total construction contract value of those 10 projects is $102,911,452.
Reporting on Workforce Opportunities and Job Creation
The Board of Supervisors set a requirement of 30% of all construction labor hours to be performed by Alameda County residents. Of projects with construction labor hours performed during the reporting period, aggregated projects surpassed the goal by over 26,000 hours.
Table 7 – Alameda County Employment Opportunities
*Refers to project #28, 29, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42 in Exhibit A
While there is no specific Goal set by the Board of Supervisors regarding job creation, over 30% of jobs created on MA1 funded new affordable housing construction are also going to Alameda County residents. This means that over 30% of both new jobs and of hours performed are directly benefiting the populations MA1 set out to serve and employ in the founding of MA1.
Table 8 – Local Workforce Goals
*Refers to project #28, 29, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42 in Exhibit A
Workforce by Local Apprentice & Journey Persons
New tools developed and implemented by staff have been increasing the granularity and accuracy of data over the last two reporting cycles. The first projects to use these tools for all subcontractors and all workers on the project moved from preconstruction into the construction
phase just after the July 2023 Report to this Committee. These tools will be utilized on all projects subject to MA1 reporting requirements moving forward. Data included in this report is beginning to show the results of these efforts regarding Equity Priority hire, including that of apprentices in their first and second years. Staff are working to improve the reporting of apprenticeship levels, which has been problematic due to differences between trades and reporting software.
Table 9 – Alameda County High Road Employment Opportunities – Hours *Refers to project #28, 29, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42 in Exhibit A
Table 10 – Alameda County High Road Employment Opportunities – Jobs
*Refers to project #28, 29, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42 in Exhibit A
Earlier coordination with the City of Oakland improved access to some data used for creating these reports. Staff are now able to report on total jobs created for projects located in Oakland, but are not yet able to track new hires, distinguish between certain variables for apprentice classifications, or document compliance with certain aspects of the outreach requirements in LCPtracker.
Exhibit B – All Projects
MA1 Wage and Workforce Report
Reporting Period: January 1, 2023, to December 31, 2023
Table B-1 – Completed Projects: Subject to MA1 Labor Compliance Requirements All 6 Completed projects are subject to full reporting per the adopted policies.
Table B-2 - Projects in Construction/Close Out: Subject to MA1 Labor Compliance Requirements
All 14 projects are subject to full reporting per the adopted policies.
Table B -3 – Projects in Pre- Development: Subject to MA1 Labor Compliance Requirements
All 11 projects are subject to full reporting per the adopted policies.
Tables B-4.1 – B-4.2 Local and Small Local Businesses
Tables B-5.1 – B-5.2 Priority Business Enterprises (MBE/WBE)
Contracting with Minority (MBE) and Women (WBE) Owned Businesses The MA1 implementation policies do not require specific goals for contracting with minority and women owned businesses; however, the Board has requested HCD staff to regularly report on total contract amounts and percentage of contract dollars awarded to Minority Owned Business Enterprises (MBE), Women Owned Business Enterprises (WBE), and projects owned by other priority business enterprises (MBE/WBE).
Staff were able to capture MBE/WBE data for some projects in this report; however, limitations in past data collection methods likely resulted in underreporting.
*emerging business status has started being tracked, and offering the information is voluntary
Tables B-6.1-6.3 – Prevailing Wage Reporting by Phase
Exhibit D
MA1 Labor and Contract Compliance
Terms and Conditions Overview:
MA1 requires paying State Prevailing Wages, the increased hire of local and local equity priority workers, and increased contracting with local and small local construction businesses. The MA1 policies for local and small local construction businesses incorporates some provisions of the County’s SLEB program, but it is not the same as the SLEB program. The following is an overview of the major terms and conditions of the MA1 Labor and Contract Compliance policies and procedures with which each project is required to comply.
A. State Prevailing Wages Rates
B. Employment of Local and Equity Priority Residents:
1. 30% Local Worker Hire Goal. 30% of all construction hours worked on the project shall be performed by residents of Alameda County.
2. 5% Equity Priority Hire Goal. 5% of all construction hours worked on the project.
C. Contracting with Local and Small Local Construction Businesses:
1. 25% Local Contracting Goal: An amount equal to 25% of the amount of the Measure A1 contract shall be paid to Alameda County-based businesses.
2. 20% Small Local Contracting Goal: An amount equal to 20% of the amount of the Measure A1 Contract, shall be paid to certified small Alameda County-based businesses.
D. Requirements for Outreach to Local and Equity Priority Workers and to Local and Small Local Businesses.
E. Reporting on HUD Section 3 requirements for new hire of low-income residents.
F. Reporting on Minority Owned Business Enterprise/Woman Owned Business Enterprise (MBE/WBE) utilization.
G. Project Labor Agreement required for new construction of Rental Housing projects that are 80 units or larger.
Definitions
Payment of State Prevailing Wage Rates are required:
Contractors shall ensure they and their employees know the correct prevailing wage rates for every classification employed on the Project and update wages throughout the year when state and federal prevailing wage rates are updated. When Federal Davis-Bacon prevailing wage is also required on the project, both wage rates are monitored. The higher of the two per trade applies.
Equity Priority Workers are residents of Alameda County with incomes below 80% of Area Median Income, and who may also meet any of the following:
A. Are apprentices in any construction trade with two years or less participation; B. Are current or past participants in Apprenticeship Readiness Programs serving Alameda County residents, including but not limited to Cypress Mandela Training Center and Rising Sun Energy Center;
C. Are current or past participants in Pre-Apprenticeship Programs serving Alameda County residents, including but not limited to Youth Employment Partnership, or construction training programs at the community college level;
D. Are recipients of public assistance;
E. Belong to any of the target populations in Alameda County identified in the Measure A1 program, including:
1. Re-entry individuals;
2. Homeless or formerly homeless individuals living in homeless housing;
3. Veterans;
4. People with disabilities;
5. Seniors; and
6. Transition-age foster youth.
Local Business:
A business with a verifiable physical fixed office and street address in Alameda County for at least six (6) months prior to the publication date of the bid to which the business responded. The business must also hold a valid business license issued by the County or a City within the County.
MBE/WBE:
Minority Business Enterprise (MBE) means a business enterprise that is at least 51% owned and controlled by one or more minority or socially and economically disadvantaged persons. Such disadvantage may arise from cultural, racial, chronic economic circumstances or other similar causes.
Women’s Business Enterprise (WBE) is an independent business concern that is at least 51% owned and controlled by one or more women who are U.S. citizens or Legal Resident Aliens; whose business formation and principal place of business are in the U.S. or its territories; and whose management and daily operation is controlled by a woman with industry expertise.
To learn more about the Minority Business Enterprise and Women Business Enterprise programs, please contact HUD’s Office of Small and Disadvantaged Business Utilization at 202- 708-1428, or visit their website, located at: https://www.hud.gov/program_offices/sdb
Small Local Business:
A Local Business (as defined above) that also possesses Small Business Enterprise (SBE) certification from any of the following agencies at the time of bid submission to the General Contractor.
1. Alameda County SLEB (Small, Local & Emerging Businesses) https://www.acgov.org/sleb_query_app/gsa/sleb/query/slebmenu.jsp
2. Many Alameda County businesses qualify for this SLEB certification, but do not apply. We highly encourage business owners with a physical location(s) within Alameda County to apply by filling out a simple form. It may take up to 60 days to obtain the certificate, so apply immediately.
Having the certification, and keeping it valid, is an excellent way to get access to many Alameda County bid opportunities and the potential to generate new business. There is a weekly SLEB Outreach Event anyone can join to learn more, get help, and ask questions about the program. It’s an online webinar where participants join via Microsoft Teams or by phone.
To see dates and times, and to register click here
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3. City of Oakland SLBE
https://apps.oaklandca.gov/contractcompliance/Contractors.aspx
4. Port of Oakland
https://srd.portofoakland.com/index.aspx
5. California Department of General Services
https://caleprocure.ca.gov/pages/PublicSearch/supplier-search.aspx
6. California Public Utilities Commission (CPUC) Supplier Clearinghouse
https://sch.thesupplierclearinghouse.com/FrontEnd/SearchCertifiedDirectory.a sp
7. Alameda County Transportation Commission
https://www.alamedactc.org/app_pages/view/4543; click on link under “Certified Firms”