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Item No. 4 (continued) government shouldn't legislate wage policy which is illegal; consumer ultimately pays for higher wages; there are plenty of local contractors who are doing quite well and who insure competition, and cited some non - prevailing wages work done in Redwood Shores and Prometheus, Lincoln Properties and Trammel Crow do not use prevailing wages and many others use mixed crews and submitted a copy of letter to Redwood City Community Development Director 2/27/89, PW EX -3. David M. Cazel, representing Lincoln Properties, 101 Lincoln Drive, Foster City opposed prevailing wages citing: entrepreneurial risk - taking is backbone of competition and provides jobs; construction projects have been all union, 50/50, but no project is totally non - union; full market place should come to bear and use of bid process insures open competition; a rtifical wages will affect affordable housing and other necessities; we turn down many housing projects because of prevailing wages; and last seven projects we built used union subcontractors. Melodie Smith, 735 Industrial Road deferred to Mr. Fletcher. Vince Fletcher,550 Price Avenue, President of Building Industry Association, West Bay Division, spoke in opposition to prevailing wage policy citing: problem is with this policy and not with working relationship with unions in this area; unconstitutional to extend to private construction beyond police powers citing San Francisco Labor Council v. Regents of University of California; this policy would create a monopoly on construction jobs for unions; Redwood City should not regulate private people from doing private work; and these policies have been voted down in other jurisdictions. John Dustin, 26 Pinehu rst Lane, Half Moon Bay, Building Industry Association, spoke in opposition citing: recent case law suggests this policy is unconstitutional; abuse of imported workers is unacceptable and would not be tolerated by the BIA and City should use police powers instead of wage policy to ameliorate this problem; many independent contractors are signatories to collective bargain agreements; not appropriate to compare Boron and Redwood City as Tom Adams did considering the disparate cost of living standards; limiting contracts to prevailing wages removes incentive to bargain in good faith and will engage City in long and costly litigation. Council requested Tom Adams to submit a report regarding the constitution- ality of this policy and Mr. Adams agreed to do so. MEMO 2/28/89 Alan Chen, Project Manager, Paragon Group, 3 Lagoon Drive Suite 220, Redwood City, Northern California Headquarters in Redwood City spoke in opposition to prevailing wages citing: Paragon provides thousands of jobs, currently has $30 million under construction, 3rd project in Redwood City in last 5 years; prevailing wage policy is unnecessary, inflationary, contrary to public policy and limits competition; high labor costs and burdensome paperwork deters smaller contractors which limits competition; question how Redwood City would enforce and pay for enforcement; no other jurisdiction has a prevailing wage policy for purely private projects; distributed PW Ex -3. Scott Strawbridge, Executive Vice President, Mechanical Contractors Association and Residential Plumbers and Mechanical Contractors Association, in favor of policy citing: we have over 200 signatory contractors, employing MINUTE BOOK NO. 48 Reg.Mtg. Page No. 304 2/27/89 Page 5