Attachment C: Stakeholder Comments, Letters, and Reports
Oakland Builders Association – Submitted Via MS Form - 6/10/2024
The process created by the City Council Resolution directing the City Administrator "to develop a future policy on labor standards for Measure U Bond funding for new construction affordable housing projects for Council consideration prior to the next issuance of a New Construction Notice of Funding Availability" has several fundamental flaws, which undermine the very purpose of asking whether labor standards should be "expanded." They are as follows:
1) The City admits that it has never studied or reported on the impacts of its existing labor standards, some of which have been in place since 1978 (prevailing wage). No new "labor standards" should be considered until the effects of the current standards are studied and explained. It should go without saying that it is not prudent to add to something you don't understand. 2) The city admits that it has never studied nor reported on the impacts of its labor standards on local, minority contractors, yet Nikki Bas, a co-author of the resolution has stated that future labor standards are intended to help local, minority contractors. No No new "labor standards" should be considered until the effects of the current standards on local, minority contractors are studied and explained. It should go without saying that it is nonsensical for Bas to claim that the labor standard ware meant to help local minority contractors when the city does not know how the city's current labor standards are impacting local, minority contractors.
3) The building trades pushing for future/new/expanded labor standards refuse to release demographic data on the percentage of minorities, women and local residents make up their ranks. But, it's an open secret that the trades doing work in Alameda are dominated by white men living outside the city. The City's own reports from 2021 and 2023 acknowledge that the very building trades seeking to the City's labor standards expanded for affordable housing, have historically, and still do, exclude women and Black workers.
4) The City has two produced two reports, one from Sept. 2021, and one from Aug. 2023, showing that adding labor standards to affordable housing funding allocations significantly increases the cost of building the affordable housing ($43K per unit several years ago in LA) and decreases the number of units built. Meanwhile, the city reports that it currently costs $900K to build a single unit of affordable housing. Adding additional costs to that figure -- particularly without knowing why the city is doing it -- would be irresponsible at best.
5) From 2022-2024 Oakland's homeless population increased by 9% to 5,490. Adding to the cost of building affordable by imposing additional labor standards without knowing how the current standards are impacting the goals for the standards would, at a minimum, simply be bad government. 6) Bottom line: a) The city's labor standards should remain as they are now unless/until the goals of new/expanded labor standards are reviewed in the context of the studied/known and REPORTED impacts of the city's existing labor standards; b) There should be no additional labor standards that increase the cost of housing whatsoever, particularly given that it is far from clear that they are needed - - when the city's homeless population continues to climb. c) Local minority contractors must be given more city support. Any labor standard that can be proven to achieve that goal should considered.
June 10, 2024
City of Oakland
City Council
1 Frank H. Ogawa Plaza
Oakland, CA 94612
RE: Labor Standards
Dear Honorable Council:
The Oakland Builders Alliance (“OBA”) position on a City Council proposal to impose undefined “labor standards” on taxpayer funds intended to build affordable housing is as follows:
1. The OBA opposes any new regulation – including new labor standards – that would complicate or increase the cost of developing affordable housing in Oakland.
2. The OBA believes that a competitive labor procurement process reduces expenses associated with constructing affordable housing.
3. The OBA supports a significant increase in public funding specifically dedicated to the training of local and small minority contractors, so they can better compete in a competitive bidding environment.
Sincerely,
JAMES HEILBRONNER, President
Oakland Builders Alliance
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Andreas Cluver
Secretary-Treasurer
Greg Bonato
President
Rafael Gonzalez
Vice President
Chuck Leonard
Sergeant in Arms
Auto & Marine Painters, #1176
Boilermakers, #549
Brick & Tile Layers, #3
Carpet & Linoleum, #12
Cement Masons, #300
Electrical Workers, #595
Elevator Constructors #8
Glaziers #169
Insulators & Asbestos Workers, #16
Iron Workers, #378
Laborers, #67
Laborers, #304
Operating Engineers, #3
Painters, #3
Plasterers, #66
Plumbers & Steamfitters, #342
Roofers, #81
Sheet Metal Workers, #104
Sign & Display, #510
Sprinkler Fitters, #483
Teamsters, #853
U.A., Utilities / Landscape, #355
Building and Construction Trades Council
of Alameda County, AFL-CIO 7750 Pardee Lane, Suite 100 Oakland, CA 94621
[email protected] | (510) 430-8664
June 11, 2024
Mr. Jestin Johnson
City Administrator
1 Frank H. Ogawa Plaza
Oakland, CA 94612
Dear Mr. Johnson:
The Building & Construction Trades Council of Alameda County (BTCA) respectfully submits our comments in response to the City of Oakland’s report on Potential Labor Standards Expansion for New Construction Measure U Affordable Housing Funding.
BTCA represents a coalition of over 20 affiliated unions and their workers in various construction trades throughout the East Bay.
BTCA strongly supports the Council’s efforts to address our housing crisis by constructing thousands of homes using Measure U funds. We appreciate the inclusion of prevailing wages and targeted hire provisions in the program but would like to emphasize the need for this work to be covered under a Project Labor Agreement (PLA).
PLAs are critical to ensuring that labor standards and community workforce standards are enforced. PLAs accomplish the following:
• Establish the infrastructure necessary to monitor, enforce, and ensure compliance with prevailing wages and all other labor standards
• Are cost neutral when applied to affordable housing projects • Support the longstanding network of workforce development programs, including pre-apprenticeship programs, apprenticeship programs, and high-road contractors • Create high road union jobs and greater equity for Oakland residents and underrepresented populations
PLAs have a track record of success on affordable housing, as demonstrated by the Measure A1 Labor Compliance Program for Affordable Housing Projects, passed by voters in 2016. In this program, the Alameda County Community Development Agency required projects over 80 units to be covered by a PLA. The goal was 3,800 affordable units, and 3,891 have been built or are in pre -development. To date, Measure A1 has exceeded the goals of units built while also exceeding workforce goals including local hire and local contracting. Those projects covered under a PLA achieved the best workforce goals.
Before taking action on Measure U labor standards, we encourage the City of Oakland to analyze the success of the Measure A1 model and consider how a PLA may be utilized successfully on Measure U projects. We welcome future conversations to meet shared objectives around affordable housing and workforce equity.
Respectfully,
Andreas Cluver, Secretary-Treasurer
Building & Construction Trades Council of Alameda County
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Andreas Cluver
Secretary-Treasurer
Greg Bonato
President
Rafael Gonzalez
Vice President
Chuck Leonard
Sergeant in Arms
Auto & Marine Painters, #1176
Boilermakers, #549
Brick & Tile Layers, #3
Carpet & Linoleum, #12
Cement Masons, #300
Electrical Workers, #595
Elevator Constructors #8
Glaziers #169
Insulators & Asbestos Workers, #16
Iron Workers, #378
Laborers, #67
Laborers, #304
Operating Engineers, #3
Painters, #3
Plasterers, #66
Plumbers & Steamfitters, #342
Roofers, #81
Sheet Metal Workers, #104
Sign & Display, #510
Sprinkler Fitters, #483
Teamsters, #853
U.A., Utilities / Landscape, #355
Building and Construction Trades Council
of Alameda County, AFL-CIO 7750 Pardee Lane, Suite 100 Oakland, CA 94621
[email protected] | (510) 430-8664
July 18, 2024
Mr. Jestin Johnson
City Administrator
1 Frank H. Ogawa Plaza
Oakland, CA 94612
Dear Mr. Johnson:
The Alameda Building and Construction Trades Council strongly supports the City Council’s efforts to address our housing crisis with the construction of affordable housing through Measure U funds. We also support workforce justice and equity, ensuring that the construction of affordable housing also produces quality high road jobs for local and underserved populations. Just as Alameda County did with Measure A1 Bond for affordable housing, the Port of Oakland with the Maritime and Aviation Project Labor Agreement (MAPLA) and the Oakland Unified School District (OUSD) Project Labor Agreement and Local Hiring Policy, the City of Oakland must use these funds to create greater economic equity for Oakland residents and greater opportunity for local, small, and minority contractors by requiring a Project Labor Agreement on projects of more than 40 units.
This requirement will promote greater equity for Oakland’s workforce and also ensure greater worker justice at the job site. When construction workers have the advocacy of their union behind them, workplaces are safer, work rules are applied equally, and wages are paid without distinction due to race or gender.
In addition to promoting equity and workplace justice, PLAs:
• Are cost neutral and will not result in the reduction in the number of units Measure U produces
• Stop the rampant exploitation of workers on prevailing wage jobs due to lack of compliance
• Support the longstanding network of workforce development programs, including pre-apprenticeship programs and high-road contractors, that uplift Oakland’s disadvantaged residents, specifically African Americans, into quality high road construction jobs
• Support participation of small and DBE-owned businesses, including non-union contractors, looking to participate on large publicly-funded construction projects • Ensures a steady supply of skilled construction workers to continue construction of affordable housing
Only by applying a Project Labor Agreement (PLA) on new projects funded by Measure U will we see greater equity and workplace justice for Oakland workers and small contractors, while addressing our affordable housing crisis.
This letter provides further detail on how PLAs promote equity and workplace justice and our recommendation to the City of Oakland.
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Projects Labor Agreements are cost neutral when applied to housing projects.
As the County’s experience with A1 shows, we can gain greater equity for workers and local BIPOC contractors and not see a reduction in the number of units Measure U hopes to build. The goal for the County’s Measure A1 was to build 3,800 units. 3891 have been built or in pre-development with an additional 600 units expected to be built.
Several hundred of these built units were covered under a PLA with six additional PLA projects expected to be built per the County’s 1/23/24 Measure A1 report. As shown below, Measure A1 projects completed under a PLA cost less on average per unit than those without. This analysis was done by Construction Trades Workforce Initiative (CTWI) using Alameda County Community Development Agency’s (CDA) A1 project information posted on the A1 program website.
Average Per Unit Cost - All MA1 Projects
Based on complete and in-construction costs
All MA1 Projects
39 projects
MA1 PLA Projects
5 projects
$751,384 $728,318
Furthermore, the Building Trades Council in their negotiations with the affordable developers agreed to language in the Measure A1 PLA allowing for a developer to seek exemptions to PLA requirements if proven too costly. No developer felt the necessity to exercise this option.
The expectation that the City will not see a reduction in units if PLAs are applied to Measure U funds is also supported by a number of studies. Philips and Littlehale (2015) compared construction cost on nine affordable housing projects under PLAs in Los Angeles with 121 similar non-PLA projects built between 2008 and 2012 and found no increase in cost. Ormiston and Duncan (2012) found no statistical relationship pointing between PLAs and project cost. Most recently, a 2024 study by UC Berkeley Labor Center also found no cost impacts when PLAs were applied to Los Angeles’ Measure HHH funded projects. Attempts by the conservative Rand Corporation to contest these findings have been rebutted by UC Berkeley Labor Center.
A study by Phillips and Watzman (2021), which stands as the only peer-reviewed examination of how PLAs impact bidding competitiveness, found no significant effect on the number of contractors responding to requests to bid.
In letters to the Council, affordable developers claim that there will be a 2-3% increase in cost if PLA are applied to Measure U funds. They have provided no documentation to support these claims nor have they provided any documentation that they would lose a competitive advantage to leverage other funds if they suffered this increase in cost.
Project Labor Agreements help to stop the rampant exploitation of workers due to the lack of compliance of prevailing wage jobs.
Without PLAs, workers are subject to rampant exploitation, including trafficking, lower wage outcomes, underreporting of hours, unsafe working conditions, and other forms of wage theft and safety issues. Lack of enforcement by state and federal regulators makes the exploitation of labor an appealing option for low road contractors.
For example, Sheet Metal Workers Local 104 compliance program has 86 current complaints awaiting review on projects taking place within Alameda County, all of which are on prevailing wage jobs. Many of these complaints are years old but have not been resolved. They are but one of several compliance organizations in the County who have similar numbers, providing a window into the rampant violations of prevailing wage requirements that happen without PLA infrastructure on these projects. Refer to the Appendix for the full letters and more details on worker violations on prevailing wage projects.
This is why workforce standards associated with AB 2011 are insufficient and why it is critical to have PLAs in place on these affordable housing projects. There is no reliable compliance system to stop low road contractors from taking advantage of a largely immigrant workforce who have no worksite protections.
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PLAs are the surest tool to stop the exploitation of the residential construction workforce. First, the workers are covered under labor agreements that contain enforcement mechanisms readily available to the worker. Second, they have a protected status if they raise issues regarding wages and benefits and they have their union as an advocate to resolve any disputes.
Project Labor Agreements support the longstanding network of workforce development programs, including pre- apprenticeship programs, apprenticeship programs, and high road contractors.
PLAs often include community benefits and workforce development initiatives, such as targeted hiring requirements and partnerships with apprenticeship programs and community-based pre-apprenticeship programs. Examples of this can be found in the Measure A1 PLA, MAPLA, and OUSD PLA. Targeted hiring requirements ensure that there is a demand for diverse, local, and skilled workers and apprentices. Pre-apprenticeship programs provide on- ramps to apprenticeship programs for community members and underrepresented populations.
State-approved union apprenticeship programs are industry-aligned training programs that provide paid work experience, safety training, classroom instruction, and nationally recognized industry credentials. Apprenticeship programs provide pathways to high-paying, skilled trades careers. Union apprenticeship programs have demonstrated higher rates of Black representation compared to non-union apprenticeship programs, according to a 2020 analysis by the UC Berkeley Labor Center using Division of Apprenticeship Standards data. The figure below shows apprenticeship numbers and percentages by race for joint (union) and unilateral (non-union) programs in Oakland. Union programs have higher numbers and representation of Black apprentices compared to non-union.
PLAs also ensure that employers are high road, meaning that they pay family-sustaining wages and benefits, provide guaranteed, portable health care for the worker and dependents, contribute to an apprenticeship training fund, and meet targeted hiring requirements.
As shown below, taken from Alameda County CDA reports, the labor standards in Measure A1 succeeded on both these fronts of elevating local and targeted hire for underrepresented populations, providing access to high road construction career opportunities on affordable housing projects. Measure A1 serves as an example of what subsequent affordable housing projects with labor standards and PLAs attached can achieve.
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Workforce Goals
For all completed and in construction projects through 2/28/23 Measure A1 Labor
Standards
Goal Attainment -
All MA1 Projects
Attainment -
MA1 PLA Projects
Prevailing Wage All Projects Goal met Goal met
Local Hire 30% of Hours 41% of Hours 41% of Hours
Equity Priority
Worker Hire
5% of Hours 12% of Hours 17% of Hours
In 2018, the Building Trades Council established their workforce development nonprofit Construction Trades Workforce Initiative (CTWI). Since CTWI was established, they have distributed over $2.5 million to Oakland- based MC3 pre-apprenticeship programs Cypress Mandela and Rising Sun. CTWI also launched a new MC3 pre- apprenticeship program at the county’s Juvenile Hall. Two more new programs are launching at Castlemont High School this fall and Laney College next spring. Other workforce development programs include an Oakland construction test prep class to help job seekers pass the union entrance exam and a childcare stipend program for pre-apprentices and apprentices.
The tables below show the enrollment and outcomes for MC3 programs at adult community-based organizations, collected by CTWI between 2020 and 2023. The data shows greater representation of Black and Latinx participants and the effectiveness of these programs, especially in serving Black/African American job seekers. 40% of MC3 participants are Black. Out of all participants who graduate, 37% have been placed in apprenticeship. This shows the positive potential for apprenticeship placements, but also highlights the need for additional PLA projects to create more placement opportunities into union apprenticeships.
MC3 Enrollment by Race
Group # Individuals Enrolled Percentage of All Individuals Asian 87 9.7%
Black 368 40.9%
Latinx 342 38%
Native American 17 1.9%
White 122 13.6%
All 899 100%
CTWI also assists contractors and employers. They provide free technical assistance and resources for minority and non-union contractors working under PLAs. They also consult on apprenticeship hiring policies to expedite entry of MC3 graduates, including bypassing the entrance exam for the electricians.
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Project Labor Agreements support participation of small business and non-union contractors
Both union and non-union contractors can bid and work on a PLA-covered project. Once awarded the project, non- union contractors are able to access a skilled workforce through the union hiring hall for the duration of the project, which can help contractors grow their business and expand their business by accessing large projects they otherwise would not have the capacity to participate on. In addition, the A1 agreement allows non-union contractors to use their “core” workers. This provides those “core” workers first opportunity to work on a project where they have union protections and collectively bargained wage and employment standards.
In addition, Measure A1’s PLA has language to ensure “carve outs” for small, minority and women contractors to meet the City’s and County’s goals for promoting a diverse contractor base.
In feedback to the Council, some developers claim that there is already an 80-90% participation of unions on non- PLA projects, and that a PLA is not necessary to provide union jobs. While it may be true that on some projects union participation may be as high as 80-90%, there is no data indicating that this is the industry standard.
Anecdotally, feedback from our union subcontractors indicates that participation of unions is significantly lower, below 50%. This means that the benefits we have identified with using a PLA on Measure U funds, such as diversifying the workforce through the region's MC3 programs, can’t be realized.
Project Labor Agreements ensure a steady supply of skilled construction workers
PLAs play a crucial role in ensuring a steady supply of skilled construction workers for affordable housing projects.
These agreements establish pre-hire collective bargaining conditions that set clear expectations for wages, working conditions, and benefits. By standardizing these terms, PLAs create demand for more of these high skilled jobs, which ensures that workers are attracted to these opportunities.
Additionally, as mentioned earlier, PLAs include provisions for apprenticeship programs, which help develop the next generation of skilled labor by providing training and career pathways for underrepresented groups. This structured approach helps to build a long-term pipeline that provides the consistent workforce necessary to complete affordable housing projects.
Alameda Building and Construction Trades Council Recommendation for the City of Oakland
PLAs have a track record of success on affordable housing, as demonstrated by the Alameda County Measure A1 Labor Compliance Program for Affordable Housing Projects. Measure A1 provides a blueprint on how the City of Oakland can achieve the creation of high-road job opportunities for local and priority workers, the development of affordable housing on time and on budget, and uplifting the participation of small, diverse, and local contractors on construction projects.
We recommend the City of Oakland require a PLA based on the A1 framework. This agreement was negotiated between the Building Trades, the affordable housing developers and contractors, and the minority contractor community. Requiring a PLA is in alignment with Resolution Three, to require developers to negotiate a Project Labor Agreement (PLA) with specified labor standards terms for Measure U in order to meet shared objectives around affordable housing and workforce equity.
Respectfully,
Andreas Cluver, Secretary-Treasurer
Building & Construction Trades Council of Alameda County
Appendix:
• Work Preservation Fund Letter
• Sheet Metal Workers Local 104 Compliance Department Letter • Northern California Electrical Construction Industry Letter
I N T E R N A T I O N A L A S S O C I A T I O N O F S H E E T M E T A L , A I R , R A I L A N D T R A N S P O R T A T I O N W O R K E R S S H E E T M E T A L W O R K E R S ’ L O C A L U N I O N N O . 1 0 4
C O M P L I A N C E D E P A R T M E N T
1 See https://norcalcic.org/wage-theft-misclassification; see also https://www.cbsnews.com/sanfrancisco/news/wage-theft- california-cal-matters/.
2 https://www.cbsnews.com/sanfrancisco/news/wage-theft-california-cal-matters/.
To Whom It May Concern:
I want to take a moment to speak about the difference that labor standards make in the procurement process.
Whereas we can intuitively understand why noncompliance might flourish when there is little (or no) oversight, the memorializing of labor standards itself is not always the solution for noncompliance – such as misclassification, underreporting of hours, and other forms of wage theft.
Simply the imposition of labor standards on a project may reduce the prevalence of noncompliance, but sparse enforcement by state and federal regulators makes the exploitation of labor an appealing option for numerous contractors. In California’s construction industry alone, research shows these practices affect as many as one in six workers and costs California taxpayers as much as a billion dollars per year.1 “Even though the Golden State has some of the strongest wage theft laws in the country, it appears state regulators may [are] failing the workers who need help the most.”2 This lax enforcement means that even on state and federal prevailing wage projects, where the government imposes prevailing wage and apprenticeship requirements, there are still countless examples of wage theft and noncompliance with labor laws. To wit, Local 104 alone has 86 current complaints on state public works projects awaiting review on projects taking place within Alameda County, with over 700 among the 49 counties this Local covers. Just within the last year, there have been contractors indicted with felony charges that are currently performing work within Alameda County on public work projects.
In addition to these administrative complaints filed with the Division of Labor Standards Enforcement, the Local has also engaged with multiple District Attorneys’ Offices throughout the state to report on criminal complaints involving violations of the Fair Labor Standards Act, Wage Theft, Bank Fraud, Unfair Business Practices, Labor Trafficking, and Failure to Remit Unemployment and Insurance Taxes for the affected workers. Should you be interested in hearing more about these indictments and investigations, we would be happy to discuss them at a time of your choosing.
I mention all of this to say the following: Project Labor Agreements (PLA) do not only impose labor standards on a project, but they also create the infrastructure to deliver oversight, and provide clear communication channels between workers, unions, and employers, allowing for swift resolution of issues before they escalate into complaints or violations. Of the 700+ projects mentioned above in which this Local filed administrative or judicial complaints, only three took place on projects with a PLA and none of the 86 projects within Alameda County.
3232 Constitution Drive – Livermore, CA 94551 – Phone (925) 208-4905 – Fax (925) 855-1328 Should you have any questions, feel free to reach out. I hope this can provide you with some insight as to why Local 104 is adamant about a Project Labor Agreement being the best approach for the upcoming work to take place within the City of Oakland.
Sincerely,
David Vincent
Director of Labor Compliance
SMART, Sheet Metal Workers’ Local Union No. 104
3232 Constitution Drive, Livermore, CA 94551
Office: (925) 208-4905 | Email: [email protected]
MeasureA1AnalysisReport
Introduction
Theshortageofaffordablehousingunitsforlow-andextremelylow-incomehouseholdsisasharedchallengeacrosscommunitiesthroughouttheBayArea.AstheCityofOaklandlookstopasspoliciestoaddresstheiraffordablehousingshortage,itisimportanttoobserve,analyze,andlearnfromtheeffortsandinitiativesofpeerpublicagencies.AlamedaCounty’sMeasureA1offersinsightsandbestpracticesfortheCityofOaklandastohowincorporatinglaborstandardsandProjectLaborAgreements(PLAs)tothedevelopmentofnewaffordablehousingunitscanhelptheCitytoachievetheirworkforceandbusinessgoals,includingthecreationofhigh-roadjobopportunitiesforlocalandpriorityworkers,thedevelopmentofaffordablehousingontimeandonbudget,andupliftingtheparticipationofsmall,disadvantagedbusinessenterprise(DBE),andlocalcontractorsonconstructionprojects.
Inthisreport,weprovideabriefbackgroundofMeasureA1anditslaborstandards,aswellasananalysisofhowtheMeasureA1PLAachievedworkforceandbusinessgoals.
MeasureA1Background
AlamedaCountyhas a65,000unitshort-fallofhousingaffordabletolow-andextremelylow-incomehouseholds.MeasureA1GeneralObligationBondwaspassedin2016byvoterstoprovide$580milliontowardsnewaffordablehousingopportunities.ThescaleoftheBondwouldempowertheCountytoproduceagoalof3,800unitsofhousingforthemostvulnerableresidentswhilealsoimplementinginnovativeprogramstoaddresstherootcausesofthehousingcrisis,suchasaccesstolending,barrierstohomeownership,andrapidchangesinthehousingmarket.
MeasureA1LaborandContract ComplianceTermsandConditions
MeasureA1includedlaborstandardstiedtoworkforcegoalsandbusinessgoals.Allofthesegoalswereultimatelymatchedorexceeded,asdescribedinthefollowingsection.Specifically,thefollowingwereidentifiedasgoalstiedtolaborstandards:
● PrevailingWage,forAllProjects● Local Hire,30%ofHours● EquityPriorityWorkerHire,5%ofHours● Local Contracting,25%ofMA1investment($32.1Millionforcompletedprojects)● Small Local Contracting,20%ofMA1investment($25.6Millionforcompletedprojects)● Project Labor Agreement,beginningin2018allnewconstructionofaffordablehousingprojectsthatare80unitsorlargerandfundedbyMA1shallhaveaProjectLaborAgreement MeasureA1Analysis
Forthisreport,wereviewedthemostrecentlaborcompliancereport 1 datedJuly15,2023(LaborComplianceReport#5)andprojectsummaries 2 postedontheA1websitebytheAlamedaCountyCommunityDevelopmentAgency(ACCDA). 2 https://measurea1.acgov.org/rental-project-summaries/ 1 Report#5-UpdateontheMeasureA1LaborComplianceProgramforAffordableHousingProjects”postedonMeasureA1CommitteeMeetings July2024 1
As of February 28, 2023, AlamedaCountyhas committedfunds to52projects under theMA1Rental HousingDevelopmentProgram.Outofthe52,39projectsarecompletedorinconstruction.
MeasureA1demonstrates asuccessful model that delivers onkeypriorityareas,includingcreatinghigh-roadjobopportunitiesforlocalandpriorityworkersreceivingprevailingwages,developingaffordablehousingontimeandonbudget,andupliftingtheparticipationofsmall,DBE,andlocalcontractorsonconstructionprojects.
ItshouldbenotedthatforMA1PLAprojects,allmatchedorexceededthegoals.ThissuggeststhattheprojectsdoneunderPLAssupportedorenhancedoutcomes.
Creatinghigh-roadjobopportunitiesforlocal andpriorityworkers Measure A1 has successfully created high-road job opportunities for local and priority workers, fostering morefamily-sustainingcareersintheconstructiontradesandcontributingtothedevelopmentofaninclusiveeconomythatbenefitseveryone.
ThetablebelowshowsthatMA1PLAprojectsexceededtheprogramgoals,andmatchedorexceededtheattainmentforallMA1Projects.Wenotethatareonly2PLAprojectsthathavepublisheddataonworkforcegoalsbecausetheotherthreePLAprojectswererecentlycompletedandwerenotincludedACCDA’sLaborComplianceReport#5.
WorkforceGoalsForall completedandinconstructionprojectsthrough2/28/23 Measure A1 LaborStandards
Goal Attainment -All MA1Projects39projects
Attainment -MA1PLAProjects2 projects (Berkeley WayandFoonLokWest) PrevailingWage AllProjects Goalmet Goalmet
Local Hire 30%ofHours 41%ofHours 41%ofHours
Equity Priority WorkerHire
5%ofHours 12%ofHours 17%ofHours
ACCDAalsocollectsandreportsinformationonworkforceethnicity.Thepublishedinformationisshowninthetablebelow.WehaverequestedworkforceethnicitydataforMA1PLAprojectsfromACCDA;however,thisinformationwasnotavailableatthetimeofthisreport.
WorkforcebyEthnicity- CompletedProjectsForall completedprojectsthrough2/28/23 Ethnicity Alameda County LaborWorkforce
Alameda CountyConstruction TradeWorkforce
MA1LaborWorkforce20projects
2 AfricanAmerican 10.6% 4.5% 3.8%
Asian 27.7% 9.5% 3.5%
Caucasian 35.9% 22.2% 21.1%
Hispanic/ Latino 21.1% 60.0% 60.7%
Native American orAlaskan
0.3% 0.5% 0.3%
Other 4.4% 3.4% 10.6%
Developingaffordablehousingontimeandonbudget
MeasureA1hassuccessfullydevelopedaffordablehousingontimeandonbudget,helpingtoaddressthe65,000unitshort-fallofhousingaffordabletolow-andextremelylow-incomehouseholdsinAlamedaCounty.
Thefirsttablebelowshowsthe5PLAprojectsintheprogramandtheirdevelopmentandper-unitcosts.Inthesecondtablebelow,wecomparedtheaverageper-unitcostofthePLAprojectsagainstallMA1projectsandfoundthatthecostwaslowerforPLAprojects.
Development &Construction- MA1PLAProjectsBasedonin-completeandin-constructioncosts Development Cost #of Units Per-Unit Cost
2012BerkeleyWay, Berkeley $121,671,317 186 $656,292
FoonLokWest, Oakland $110,499,559 130 $849,997
Douglas Ford - Irvington Senior,Fremont
$65,549,178 90 $728,434
Casa Suenos - Fruitvale TransitVillagePhaseIIB, Oakland $142,317,372 181 $786,284
Depot Community, Hayward $77,572,994 125 $620,584
AveragePerUnit Cost - All MA1ProjectsBasedoncompleteandin-constructioncosts All MA1Projects39projects
MA1PLAProjects5projects
$751,384 $728,318
3 Upliftingtheparticipationof small, DBE, andlocal contractors MeasureA1hassuccessfullyupliftedsmallandlocalcontractors,allowingthemtoparticipateontheselargeraffordablehousingconstructionprojects.ThisisespeciallyimportantandimpactfulforDBEcontractors,whotendtobesmallandlocalenterprises.
ThetwotablesbelowshowthatMA1PLAprojectsexceededtheprogramgoals,andexceededtheattainmentforallMA1Projects.Wenotethatareonly2PLAprojectsthathavepublisheddataonworkforcegoalsbecausetheotherthreePLAprojectswererecentlycompletedandwerenotincludedACCDA’sLaborComplianceReport#5.
BusinessGoalsOnlycompletedprojectsthrough2/28/23
Measure A1 LaborStandards
Goal Attainment -All MA1Projects28projects
Attainment -MA1PLAProjects2 projects (Berkeley WayandFoonLokWest) Local Contracting 25%ofMA1investment=$32.1 Million forcompletedprojects 154% = $219,127,782($142,270,837 total MA1investment)
285%=$83,897,400
Small Local Contracting 20%ofMA1investment=$25.6millionforcompletedprojects 52% = $74,500,000approximately($142,270,837 total MA1investment) 81%=$2,318,162
Conclusion
MeasureA1hasproventobeasuccessfulmodelinaddressingAlamedaCounty'saffordablehousingcrisis,settingastandardthatweencouragetheCityofOaklandtofollowinitsownefforts.Theinitiativenotonlymetbutoftenexceededworkforceandbusinessgoals,creatinghigh-roadjobopportunitiesandfosteringaninclusiveeconomy.Thecountyhasmadesubstantialprogress,with28projectscompleted,11inconstruction,and13inpre-developmentasofthelatestreports.Thecommitmenttolocalandpriorityworkers,smallandDBEcontractors,andmaintainingprojectsontimeandwithinbudgetunderscoresMeasureA1'seffectiveness.ThisanalysishighlightshowlaborstandardsandProjectLaborAgreements(PLAs)havecontributedtothesignificantstridesmadeindevelopingaffordablehousing.WeencouragetheCityofOaklandtoconsiderimplementingthesemeasuresintheirowninitiative,andtheBuildingTradesCouncil(BTC)andorganizedlaborstandreadytopartnerwiththeCityondeliveringontheseeffortstoensurethecontinuedgrowthandprosperityofOakland. 4