Item 3: Ratification of IGR Committee Actions and Direction on Legislative Policy

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approach which helps to fund collaborative multi-agency approaches to solving local problems which might not otherwise be possible financially. HB 2397 Relating Clause: Relating to fabrication of nonstandard items specifically for public works. Title: Includes in definition of 'public works' fabrication or manufacture of nonstandard items produced by contract specifically for public works. Sponsored by: Representative HOLVEY URL:http://www.leg.state.or.us/09reg/measpdf/hb2300.dir/hb2397.intro.pdf RespondentDept Updated Priority Policy Poli Numb Recommendation Contact Eric Jones Eric Jones PW-ADM 1/20/2009 Pri 2 Oppose Comments: Recommend Paul Klope review this legislation to determine potential contract costs and impacts. Agree with Paul's analysis ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Paul Klope PWE 1/16/2009 Pri 2 Yes VIII. B Oppose Comments: This bill would require payment of prevailing wages to workers employed under contracts to fabricate or manufacture nonstandard items. This bill is not in the City's best interest for at least two reasons: 1. it creates a new class of contracts for which prevailing wages must be paid which will be difficult to monitor and enforce; 2. it doesn't define "nonstandard items". Currently, contracts for fabrication and/or manufacture items which may be used for public works fall under law governing procurement of goods and services (ORS279A). These contracts are written for a wide range of items that public works agencies purchase to construct public infrastructure. To require prevailing wage laws to be imposed, monitored and enforced on procurement contracts would be an overwhelming administrative task for BOLI and for public agencies due to the number of contracts and because items being purchased for public works projects may not be manufactured or fabricated in Eugene or even in Oregon. Another concern is that by opening the door to "nonstandard" items, it is a small step with huge consequences to open that door further to "standard" items. Another aspect of the language that would make this new law subject to considerable dispute is the use of the term "nonstandard" without a definition. ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Jerome Lidz ATTORNEY 1/21/2009 Pri 2 Yes II Oppose Comments: I agree with all of Glen's and Paul's insightful comments. In addition to increasing the City's costs in the ways they describe, this bill would create administrative problems for the manufacturer, which may have to pay the same worker at different hourly rates in any given pay period. As a result, we may receive fewer proposals to make items covered by this bill and/or the cost will be higher. ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Glen Svendsen Glen Svendsen CS-FAC 1/16/2009 Pri 2 Oppose Comments: In addition to Paul Klope's comments, this language would create a jurisdictional problem for building and heavy civil construction. The "fabrication or manufacture of non-standard items" may occur outside of the State. It is not clear what liability the City would be under to monitor and report on wages paid by non-Oregon contractors or subcontraactors in this situation. For the most part, "public works" are site specific, and construction activity and personnel are located at the construction location. This proposed change in the definition of a "public work" breaks the connection of the work being done to a location within the jurisdiction of the State. See staff response to HB 2998 last session. My comments at that time were: "This bill would create significant administrative and enforcement problems for local governments, and could increase the cost of public buildings, perhaps substantially. By extending 12