December 7, 2006

MEDIA RELEASE

CONTACT:

John Jackley, PDC (503) 823-3315

PDC Board Receives Annual Report on Diversity in Contracting; Board Also Directs Staff to Development Construction Wage Policy

Today, the Portland Development Commission (PDC) received the Annual Diversity in Contracting and Workforce Training Report for fiscal year 2005-06. The annual report helps keep the Board apprised of the results of PDC’s minority, women and emerging small business (M/W/ESB) contracting efforts and Workforce Training and Hiring Program.

For fiscal year 2005-06, PDC established 20 percent goals for both its M/W/ESB program and the Workforce Training and Hiring Program (which tracks apprenticeship hours on projects). Results from the report show:

• PDC’s M/W/ESB utilization goal was $14 million, equaling 19.61 percent of PDC funds expended for the applicable projects.
  
  
• The Workforce Training and Hiring Program surpassed its goal with 266,974 hours worked by state registered apprentices, equaling 23.43 percent of the total project hours.

The report also covers the M/W/ESB and workforce diversity efforts underway in the South Waterfront Central District within the North Macadam Urban Renewal Area. Projects finished or underway in the district are a mix of public and private projects and include the Meriwether Condominiums, Oregon Health and Science University’s (OHSU) Center for Health and Healing, the Portland Streetcar, John Ross Condominiums and aerial tram’s lower tower.

The dollar total going to M/W/ESB firms for on-going projects has grown to $33.3 million. This represents 97 separate M/W/ESB contracts. PDC’s Executive Director Bruce Warner sent letters to developers North Macadam Investors, Inc. and OHSU expressing concern over the lack of participation by minority contractors on the condominium projects and Center for Health and Healing.

In October 2005, the PDC Board also established a Workforce Diversity Initiative and strategy for increasing female and minority representation in the construction trades. The initiative established phased goals for increasing diversity on all South Waterfront Development Agreements with a final diversity goal of 35 percent (20 percent minority and 15 percent female participation) by the year 2013. Only one project was subject to this agreement for the fiscal year 2005-06 report and this was the Public Storage Demolition project on SW Moody Street. It is too early to evaluate the success of this program and next year’s report will include more data.

Also at yesterday’s meeting, the Commissioners reaffirmed their intent to increase the opportunity for Portlanders to access family and living wage jobs as an important means to wealth creation.

The Commission passed a resolution which directed the development of a wage policy that clearly identifies a PDC investment threshold which would trigger the application of prevailing wage rates for privately-owned construction projects which are not clearly subject to federal or state prevailing wage rate laws. The Commission expressed strong interest in also identifying methods to expand opportunities for minorities and women in construction.

This action is the initial result of the Construction Wage Study, which the Board began in August 2006. The intent of the Study is to develop a PDC wage policy for privately-owned construction projects which are not clearly subject to federal or state prevailing wage rate laws. The Wage Study included four public work sessions and nearly twenty hours of panel discussions, public testimony and PDC Commission input. Many of the issues raised concerned the impacts and benefits of prevailing wage rates as it pertains to training; construction employment and contracting opportunities; cost and quality of construction; and workforce diversity. Participation included Bureau of Labor Industries leadership, union and non-union organizations and members, developers, contractors, minority-and women- owned business and construction workers, and other jurisdictions.

PDC staff will return on January 10, 2007 or earlier with greater detail on the potential specifics for a wage policy. The Board will also accept public testimony on the approved resolution at their next meeting, December 13 scheduled from 1:00-6:00 p.m. at PDC’s offices, 222 NW 5th Avenue in Old Town/Chinatown.

PDC was created by Portland voters in 1958 to serve as the city’s urban renewal agency as laid out in Chapter 15 of the City’s Charter. PDC provides comprehensive housing, development and economic development programs within the Portland region.

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