January 11, 2007

PDC Adopts Construction Wage Policy
Other City-Wide Issues Discussed at Monthly Meeting

The Portland Development Commission (PDC) met yesterday in St. Johns at the St. Johns Community Center. This regular, public meeting of the PDC Board moved forward several important city-wide initiatives including the adoption of a new construction wage policy.

“Ending the uncertainty around prevailing wage and establishing a floor on wages and benefits are in the long term best interests of the community,” said PDC Board Chair Mark Rosenbaum.

The board adopted a new construction wage policy to ensure that PDC-financed construction projects provide family and living wage jobs for construction workers and to provide clarity for business. PDC has been working on the wage policy with stakeholders since August 2002. The new policy has received the endorsement of union and non-union representatives, contractors, other stakeholders and the PDC Board.

Some important terms of the policy include:

• All projects receiving more than one million dollars in PDC resources will be subject to the new wage policy, which requires wages, fringe rates, and apprentice pay to be identical to BOLI rates for commercial construction and the federal Davis-Bacon rates for residential construction;

• The Oregon Building and Construction Trades Council will submit an annual affirmative action report from each member union. On projects where the policy applies, the report will include usage rates and goals for apprentice and journey workers. This requirement is intended to improve access to family-wage jobs for women and minorities.
  
  
• PDC will appoint a Wage Rate Oversight Group that includes PDC, union and non-union representatives, women in trades, the minority community, the construction industry and other stakeholders to review the affirmative action report and make recommendations;
  
  
• The policy for residential construction will be consistent with the recent agreement between the Building and Construction Trades Council and the affordable housing community;
  
  
• And other provisions in the attached document.

At the January 24, 2007 PDC Board meeting, staff will present a Minority Contracting Initiative to the Board for consideration. This initiative will address issues including prompt payment, insurance and bonding barriers, expanded use of the city’s Sheltered Market Program, and other ways to increase the use of minority and women-owned businesses.

At the January 10 meeting, the PDC Board also discussed the following items:

• PDC is working with City Commissioner Erik Sten to set aside 30 percent of funds in urban renewal areas for the development of affordable housing. The board approved preliminary staff recommendations for income guidelines for the new housing. A public workshop to discuss the proposed income guidelines and solicit input is scheduled for January 24 from 6-8 p.m. at OAME offices, 4134 N. Vancouver Ave.

• Board members received a briefing on current procedures for PDC real property appraisals and procedures as they relate to property transactions. The Board is seeking better understanding and clarity following discussions over property at SW 3rd and Oak.
  
  
• The Board also received a briefing from Daniel Bernstine, President of Portland State University, and Dr. Lindsay Desrochers, Vice President of Finance and Administration for the University on PSU’s Economic and Development Plan. PSU recently completed an economic development study evaluating the university’s impact on the city and region as well as its economic potential projected to 2017. The presentation was intended to foster a discussion between PDC and PSU regarding current and future opportunities for partnership.

Yesterday’s board agenda and all supporting documents can be found on PDC’s web site at www.pdc.us/meetings. The next regular meeting of the PDC board is January 24 from 8-11 a.m. at the Oregon Association of Minority Entrepreneurs, 4134 N. Vancouver Ave.

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.

Attached: Attachment A & B to the Construction Wage Policy.

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