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22
City of Pleasanton
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CITY CLERK
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AGENDA PACKETS
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2016
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100416
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11/30/2016 2:23:44 PM
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CITY CLERK
CITY CLERK - TYPE
AGENDA REPORT
DOCUMENT DATE
10/4/2016
DESTRUCT DATE
15Y
DOCUMENT NO
21
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Community Choice Aggregation Feasibility Analysis Alameda County <br /> proposed CCA renewable capacity in any of the scenarios would indeed be public-funded(as <br /> opposed to power purchase agreements with third party private project developers). The straight- <br /> time48 prevailing hourly"covered"wage rate for FY2016 in the northern counties (including <br /> Alameda County) for Group 3 construction laborers is $49.74 which is 21 percent higher than the <br /> market rate(indicative of the aforementioned 20:80 blend) of$40.96 in the REMI model. <br /> A sensitivity run(Table 20)was conducted just for the macroeconomic impacts that considers <br /> 100 percent union or"covered" labor for the direct effect only. This did not require MRW to <br /> inflate the renewable project costs and then recalculate forecasted CCA electric rates as would be <br /> warranted. Instead—for scenario 1- the fixed(NREL JEDI model derived) labor share on <br /> MRW's initial annual renewable investment would hire fewer but better paid(by 21 percent) <br /> construction laborers. As Table 20 shows, the prevailing wage sensitivity has 13 fewer average <br /> annual direct (Construction)jobs but the gain in direct"covered"jobs means 51 construction <br /> laborers would be paid more. <br /> Table 20. Scenario 1 Sensitivity on Direct Construction Requirements <br /> • Market Wage Prevailing Wage <br /> Y�. (20%covered:80%not covered) (100%covered) <br /> Scenario Direct Jobs 165 152 <br /> As Construction 80 67 <br /> UNION (Covered) 16 67 <br /> Non-UNION 64 0 <br /> Market Wage Prevailing Wage <br /> (20%covered:80%not covered) (100%covered) <br /> Scenario Total Jobs 1343 1321 <br /> As Construction 235 221 <br /> UNION (Covered) 47 98 <br /> Non-UNION 188 123 <br /> The other approach to testing this sensitivity would entail inflating the annual investment cost on <br /> renewable projects by the 21 percent labor premium, restating a higher set of CCA electric rate <br /> projections(from these renewable capacity additions)than the current report is based upon, <br /> leading to a reduced `rate savings' effect. This would more drastically dampen the <br /> macroeconomic impacts than shown in Table 20since the net rate savings have been shown to <br /> account for 76 percent of the county's positive job impacts. <br /> 48 Current Employer Statistics data for 2014 show on average a 40-hour work week in the Construction sector. <br /> July,2016 42 MRW&Associates,LLC <br />
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