STATEMENT OF QUALIFICATIONS

Response to Request for Proposals for Economic and Financial Advisors to Evaluate The Citywide Minimum Wage Proposal

Presented to:

City of Los Angeles Office of the Chief Legislative Analyst Office of the City Administrative Officer 200 North Spring Street, City Hall Room 255 Los Angeles, California 90012

Presented by:

Beacon Economics, LLC

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A. SIGNED COVER LETTER

City of Los Angeles Office of the Chief Legislative Analyst Attention: John Wickham 200 N. Spring Street, City Hall Room 255 Los Angeles, California 90012

December 10, 2014

·Dear Mr. Wickham:

Beacon Economics is pleased to submit the following proposal in response to the City of Los Angeles' request for proposal (RFP) for an econq,mic and fiscal analysis of the proposed Citywide Minimum Wage. This submittal details our approach, methodology, experience, staff, and pricing for completing a comprehensive, independent economic impact analysis of the proposed minimum wage ordinance.

Beacon Economics is uniquely qualified to conduct this analysis for the City of Los Angeles. In addition to years of experience performing a wide variety of economic and fiscal analysis, we have been specifically involved in the.analysis of minimum wage related issues in the City, including providing an analysis to the City Counci_i on a recent hotel worker minimum wage initiative.

In accordance with the RFP's requirements, we certify that this proposal shall remain firm for a period of one hundred twenty (120) calendar days following the deadline date for submittal (December 11, 2014). Our company's authorized representative is designated to be Managing Partner Sherif Hanna. Mr. Hanna's contact inforf!!ation Is as follows:

Beacon Economics LLC 5777 west Century Boulevard, Suite 895, Los Angeles, CA 90045 Phone: 424-646·4656~ Email: [email protected]

Beacon Economics is excited at the prospect of working on this project. We look forw;;~rd to hearing frorn you and thank you for your consideration.

Sherif Hanna Managing Partner, Beacon Economics LLC (legally authorized signatory) B. BUSINESS ORGANIZATION

Beacon Economics LLC is an independent economic consulting and research firm located in Los Angeles and specializing in economic impact analysis, economic policy analysis, public revenue and economic forecasting, real estate market analysis, regional economic analysis, labor market analysis, and industry analysis. The firm officially became a business on December 27, 2006 when its articles of incorporation were ratified by the Secretary of State (a copy of our Articles of Organization is included in the Appendices of this proposal). Beacon Economics is owned and managed by its Founding Partner, economist Dr. Christopher Thornberg, and its Managing Partner Mr. Sherif Hanna. Dr. Thornberg holds 60% ownership and Mr. Hanna holds 40% ownership in the firm. Beacon Economics is a Limited Liability Corporation, partnership type.

Beacon Economics is certified as a Small Business Enterprise (Micro) with the State of California Department of General Services (Certification Number: #56256) and currently has a total of 14 employees in addition to its two partners. The firm has three senior staff members, Director of Economic Research Jordan Levine, Director or Business Development Rick Smith, and Director of Communications Victoria Pike Bond. Eight of the firm’s staff members are researchers with varying levels of seniority and who specialize in a variety of economic disciplines. Beacon Economics is also closely affiliated with a variety of top-tier experts from universities and other organizations who participate in its projects and in delivering its services. At most given times, Beacon Economics has student or non-student paid interns working for the firm.

The firm’s business tax license number with the City of Los Angeles is 0002438348-0001-2. Our 2014 business license renewal letter from the City’s Office of Finance is included in the Appendices section of this proposal. The firm’s vendor registration/ID number with the Los Angeles Business Assistance Virtual Network (BAVN) is 25560.

Beacon Economics is not including any subcontractors in this proposal.

The firm’s address is 5777 West Century Boulevard, Suite 895, Los Angeles, CA 90045.

C. PRIOR EXPERIENCE AND QUALIFICATIONS

Led by Dr. Christopher Thornberg, a renowned and highly experienced economist committed to rigorous research and intellectual integrity, Beacon Economics has built a reputation as one of California’s leading economic research, consulting, and data services firms. Almost immediately after its launch, Beacon Economics rose to prominence as one of the earliest and most adamant predictors of the housing bubble crash and of the economic turmoil that has followed. The firm is widely credited as the first forecasting organization on the West Coast to have predicted the recession of 2008-09. Beacon Economics’ partners and staff have wide-ranging and specific experience in economic policy analysis, regional economic analysis, public revenue analysis and forecasting, economic impact analysis, economic analyses for cities’ general plans, ports and infrastructure analyses, real estate market analyses, statistical evaluation, demographic analysis, employment and labor analyses, economic policy analyses, industry cluster analyses, and industrial land use. One key measure of Beacon’s fiscal and economic expertise and experience is our 2008 appointment as chief economic advisor to the Office of the California State Controller, a role the firm held through 2012. Additionally, Founding Partner Christopher Thornberg was Chairman of Controller John Chiang’s Council of Economic Advisors, the main advisory body that advises the Controller on major issues and trends that affect the state’s economy and fiscal health. In these roles, Beacon was responsible for counseling and informing the state’s chief fiscal officer on emerging strengths and vulnerabilities in California’s economy. We served successfully in this leading position for four years, contributing critical analysis to the Controller’s monthly Statement of General Fund Cash Receipts and Disbursements. This includes analyzing the state’s current cash position and providing an analysis of the state’s immediate fiscal future.

Beacon Economics has a long and varied history of working with public sector clients on complex economic projects from revenue/fee forecasting to real estate market analysis to economic impact analysis. Our clients range from some of California’s largest municipalities and counties, to state offices, to special districts. Following is a select list of select public sector clients to whom we have provided services in the past 5 years:

City and County of Los Angeles City and County of Riverside California State Controller City of Ontario County of Santa Clara County of Monterey City of Richmond County of Sonoma Los Angeles Unified School District University of California, Riverside County of San Bernardino Los Angeles Workforce Investment Board City of Oakland Metropolitan Water District of Southern CA East Bay Economic Development Alliance Los Angeles County Metro. Transp. Authority

Following are examples of prior experience specifically relevant to the current RFP. Included are references the City can contact to verify the work.

§ Los Angeles Hotel Living Wage Ordinance Analysis

Client: City of Los Angeles, City Council, Office of Herb Wesson Address: 200 N. Spring Street, Room 430, Los Angeles, CA 90012 Contact: Herb Wesson, 213-473-7010, [email protected] Dates: September 2014

Beacon Economics was one of three firms selected to analyze the potential economic impacts of a recent ordinance to raise the minimum wage for certain hotel employees in the City of Los Angeles. Based on our long and steady track record of unbiased and nonpartisan analysis, Beacon Economics was the one firm selected by both business and labor interests. The analysis came in the form of nine analytic questions delivered to us by the Office of Los Angeles City Council President Herb Wesson. The ensuing analysis included a comprehensive estimate of the number of hotel workers affected by the ordinance, whether the number of workers making

less than a living wage had a significant negative effect on the Los Angeles city economy as a whole, and analytic comparisons to the effects of similar ordinances in the City’s LAX region, in Long Beach, in San Francisco, and in Seattle. This comparative analysis required a thorough examination of the specific components of these other ordinances and of their economic effects. The analysis also included a 5 to 10 year history of sales, payroll, and employment data for the hotel industry within the Los Angeles-Long Beach-Santa Ana Metropolitan Area, an assessment of how a regional tourism authority would affect trends in the local hotel industry, and an examination of overall hotel industry employment trends in the region. Beacon Economics utilized vast datasets to complete this analysis. This includes data from the U.S. Bureau of Labor Statistics QCEW, the California EDD’s QCEW, the U.S. Census’ American Community Survey, tourism data from PKF Consulting and “Visit California,” and extensive literature searches.

§ City of San Jose Minimum Wage “Measure D” Analysis

Client: California Restaurant Association Address: 621 Capitol Mall, Suite 2000, Sacramento, CA 95814 Contact: Jot Condie, President & CEO, 916-431-2735 Dates: September 2012

Beacon Economics conducted a study on the effects of a citywide minimum wage proposal (Measure D) that appeared on the November 2012 ballot in the City of San Jose. The resulting 21-page report included both a summary and comprehensive analysis of existing minimum wage literature, including analyses of both national/state minimum wage laws as well as more infrequent citywide minimum wage laws and policies that exist across the United States. The study also measured the potential net economic impact to the City of San Jose economy due to an increase in the minimum wage from the statewide level of $8.00 per hour to $10.00 per hour. The methodology included an analysis of the population of minimum wage workers in the City, of the direct employment effects, of the increased cost of doing business, of increased consumer spending, and of other potential effects such as the cost to the City itself for implementation and enforcement.

§ City of Los Angeles Comparative Analysis and Forecast

Client: City of Los Angeles, City Administrative Officer Address: 200 N. Main St. Suite 1500, Los Angeles, CA 90012 Contact: Miguel Santana, 213-473-7534, EMAIL Dates: 2012, 2013, 2014

For the past three years Beacon Economics has conducted a comprehensive comparative analysis and forecast for economic indicators and trends in the City of Los Angeles. The most

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recent 23-page report was delivered in May of 2014. These analyses are thorough quantitative examinations of long and short-term economic trends and of key indicators of the economy. The studies include detailed analyses of employment, business activity, residential real estate, commercial real estate, and demographics in the City. These assessments include comparative analyses where comparisons are made to other cities and locations in the region, allowing for a much more accurate and robust picture of the context and condition of the City of Los Angeles. The analyses also include a 5-year economic forecast for the City’s population, employment, taxable sales, and real estate markets. This year-to-year work has allowed Beacon Economics to develop an exceptionally deep understanding of economic conditions and trends in the City of Los Angeles, as well as giving us a wide-ranging understanding of how exactly the City compares to other areas along many measures, and of the external issues and policies that affect the City’s economy.

§ Los Angeles City Council Districts Economic Reports

Client: Los Angeles Area Chamber of Commerce Address: 350 South Bixel Street, Los Angeles, CA 90017 Contact: Gary Toebben, President & CEO, 213-580-7525, [email protected] Dates: 2010, 2011, 2012, 2013, 2014

In 2010, the Los Angeles Area Chamber of Commerce charged Beacon Economics with developing a report that would facilitate a more focused dialogue about economic conditions within the City of Los Angeles and that would present information on underlying trends in each of the City's 15 city council districts. The most recent report is the 5th annual Los Angeles City Council Districts Report and was delivered in September of 2014. The report provides timely economic and demographic indicators for the City of Los Angeles and the various disparate areas within the City. As an annual report, this analysis also tracks ongoing progress, identifying potential challenges and providing important context for economic and policy decisions that help to shape the future of the City. Since the creation of the initial Los Angeles City Council Districts Report five years ago, there have been several improvements to the quantity and quality of data presented on a district-by-district basis. In 2014, Beacon Economics presented two important additions: more detailed employment data and substantial demographic and quality of life indicators. The analysis begins with a broad summary of economic conditions at the national, state, and regional level, and then proceeds to analyze the state of the City of Los Angeles. It concludes with a specific analysis of each of Los Angeles' 15 city council districts.

§ Los Angeles Economic Forecast Book & Conference

Client: Loyola Marymount University, Center for the Study of Los Angeles Address: 1 LMU Drive, Suite 4114, Los Angeles, CA 90045 Contact: Fernando Guerra, Director, 310-338-4565, [email protected]

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Dates: 2014, 2015 (contracted)

Beginning in 2014, Beacon Economics partnered with the Center for the Study of Los Angeles at Loyola Marymount University to develop an annual economic forecast book and conference. The 2014 conference was held very successfully in on February 25 of this year and plans for the 2015 event and book are in progress. For the conference, Beacon Economics authored and produced a 100-plus page Economic Forecast Book. This exhaustive and forward-looking report provided deep analysis and economic modeling of the City of Los Angeles’ economy, the broader Southern California economy, the state economy, and the national economy. The analysis includes thorough examinations of major economic indicators and drivers including, employment, income, demographics, industry, residential and commercial real estate, and quality of life. The book also includes a complete 5-year economic forecast of leading indicators for Los Angeles County, covering personal income, taxable sales, building permits, home prices and sales, population, and others.

To provide additional detail, following are brief descriptions of the broader services Beacon Economics has provided to select public sector clients:

• Transportation Corridor Agencies of Orange County – A comprehensive economic benefit analysis of a proposed extension of the 241 Toll Road to Interstate 5 in Orange County. Our analysis provided estimates of the economic impact the construction activity would have on the local economy in terms of primary and secondary revenue generation for local and state businesses, as well as the number of jobs generated. The work included also examined the impact of time-savings as a result of congestion reduction.

• City of Corona – Ongoing regional economic analysis that identifies current and emerging areas of growth and issues of concern within the local economy. This project also includes delivering analysis and forecasting of the U.S. and California state economy in order to provide context and identify national and state issues that may affect the region. The analysis is delivered in report form and provides a detailed assessment and analysis of major indicators including employment, commercial and residential real estate, business activity, consumer spending, and other areas of the economy.

• Los Angeles Unified School District – A series of assessed valuation forecasts that informed LAUSD of the likely future valuation of its school facilities and other property. Our work included providing the school district with a clear vision of future property valuation within their administrative area to facilitate efficient and successful planning and to facilitate bond service and issuance.

• Riverside County Transportation Commission – A comprehensive economic impact analysis of the planned expansion of the State Route 91 Corridor in Riverside County.

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Our work specifically focused on the economic impact of the investment, time savings the project would generate, and the impact the project would have on future economic growth in the region. Specifically, the analysis evaluated direct and indirect job creation from actual construction work, the value of time savings by commuters, and the indirect impact on retail sales growth along the corridor.

• The City of Oakland – Annual revenue forecasts that identified the likely revenue flows the City could expect in the near-term future. Our work included creating a revenue forecasting model, and building a fully integrated econometric model in order to forecast both economic drivers and revenue streams. The forecasting models were augmented by data sources maintained by the City of Oakland’s Revenue Administration Department and we continually worked with City staff to identify ways in which the basic model could be improved by incorporating additional data sources.

• The County of Tulare – Broad, comprehensive economic analysis and forecast of the County and surrounding region. The analysis covered major aspects of the local economy including agriculture, business activity, employment, real estate, and demographics, providing a solid economic backdrop on which public planning, budgeting, and capital projects could be based.

• Los Angeles County Workforce Investment Board – Evaluate an industry cluster analysis and methodology, identify where the analysis failed, and make recommendations for future cluster analysis. Our work included analyzing assumptions used to create industry clusters and identifying important questions that had been left out of previous methodology. Our evaluation also included a detailed description of how to understand labor market indicators and described the steps in conducting empirical labor market analysis. Ultimately, the report provided a complete understanding of the benefits, limitations, and proper methodologies ascribed to statistical analysis for the WIBs use.

Working extensively in regions across California, Beacon Economics has specifically developed regional economic analysis as one of our core areas of expertise. Regional analysis is unique and our specific expertise and understanding allows us to add critical nuance and relevance to our analysis of conditions and programs within particular regions. Underscoring our focus on regional economies, and their relation to the state and U.S. economies, are Beacon Economics’ regional economic forecast conferences. In the past six years, Beacon has hosted these events in Los Angeles, the Inland Empire, San Diego, San Francisco, the East San Francisco Bay, and the South San Francisco Bay. Each event includes a comprehensive economic forecast for the United States, California, and the region in question. The centerpiece of each event is a 100- plus-page forecast book that contains an exhaustive analysis of a region’s major economic indicators including employment, income, demographics, residential and commercial real estate, and quality of life issues. The event books are authored entirely by Beacon staff,

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including the team members participating in this proposal.

D. KEY PERSONNEL Included below are complete bios/resumes of all Beacon Economics’ personnel who will be assigned to work on the current RFP. The areas of analysis for which each team member is responsible are included.

Dr. Christopher Thornberg PhD, is Founding Partner of Beacon Economics, LLC. Under the current RFP, Dr. Thornberg will be responsible for final and total direction, oversight, review, and quality control of all project data, methodologies, schedules, and deliverables. He will also be a key contact for client communications. Dr. Thornberg is widely considered to be one of California’s leading economists. An expert in economic forecasting, regional economics, real estate analysis, labor markets, and economic policy, he was one of the earliest and most adamant predictors of the subprime mortgage market crash that began in 2007, and of the global economic recession that followed. Since 2006, he has served on the advisory board of Wall Street hedge fund, Paulson & Co. Inc. Between 2008 and 2012, he served as a chief economic advisor to the California State Controller’s Office, and as Chair of Controller John Chiang’s Council of Economic Advisors.

A highly sought after speaker, Dr. Thornberg regularly presents to leading business, government, and nonprofit organizations across the globe. These groups include REOMAC, the California State Association of Counties, Colliers International, State Farm Insurance, and the California and Nevada Credit Union League, among many others. He has testified before the U.S. Congress House Committee on Financial Services on municipal debt issues, and before the California State Assembly Committee on Revenue and Taxation regarding rule changes related to Proposition 13.

Dr. Thornberg has been involved in conducting research and developing analytic products for international clients that explore the trade and economic connections between the United States and the world. This has included analysis and speaking presentations regarding the impact that U.S. trading partners have on U.S. global competitiveness for the Centre for Investor Education in Melbourne Australia, and U.S. and international economic outlooks and their effect on global trade activity for the African Cashew Alliance in Cotonou, Benin. He has also conducted a number of special studies measuring the effect of important events on the economy including the NAFTA treaty, the California electricity crisis, port security, California’s water transfer programs, and the terrorist attacks of September 11, 2001.

Dr. Thornberg serves on the editorial board of the Graziadio Business Report, a peer-reviewed publication of the Graziadio School of Business and Management at Pepperdine University. He is also a panel member of the National Association of Business Economists’ quarterly “Outlook” and a contributor to the “Economic Consensus Outlook” published by the Journal of Business Forecasting.

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Dr. Thornberg also serves on the boards of a number of business and nonprofit organizations including on the Board of Directors of the Los Angeles Area Chamber of Commerce, as a member of the Residential Real Estate Committee at the University of San Diego’s Burnham- Moores Center for Residential Real Estate, as a Business Leader Member of America's Edge, a nonprofit organization focused on strengthening businesses and the economy through public investments in youth and education, and on the Advisory Board of the Asian Real Estate Association of America.

Prior to launching Beacon Economics Dr. Thornberg was a senior economist with UCLA’s Anderson Forecast where he regularly authored economic outlooks for California, Los Angeles, the East Bay, and developed specialized forecasts for a variety of public and private entities. He previously taught in the MBA program at UCLA’s Anderson School, in the Rady School of Business at UCSD, and at Thammasat University in Bangkok, Thailand. He has also held a faculty position in the economics department at Clemson University.

A well-known media commentator, Dr. Thornberg has appeared on CNN and NPR and is regularly quoted in major national dailies including the Wall Street Journal and New York Times.

Originally from upstate New York, Dr. Thornberg holds a Ph.D in Business Economics from The Anderson School at UCLA, and a B.S. in Business Administration from the State University of New York at Buffalo.

Jordan Levine is Economist and Director of Economic Research at Beacon Economics. Under the current RFP, Mr. Levine will be responsible for all day-to-day oversight and management of data, research methods and processes, schedules, client communications, and final deliverables. He will directly oversee the work of all members of the research team. In his role at Beacon Economics he is responsible for running and updating Beacon Economics’ quarterly state and metro area forecast models, and plays a leading role in the firm’s major consulting projects. He also manages Beacon Economics’ EB-5 Visa economic and employment analysis practice. He has conducted economic forecasting and analysis for the Office of the California State Controller, the Los Angeles Chamber of Commerce, the California Bankers Association, and Paulson & Co., Inc., among many others.

Since joining Beacon Economics, Mr. Levine has emerged as a leading authority on the California economy and its many regional economies. He is in growing demand as a public speaker and as a trusted source among major national and state media. He is regularly quoted by print and broadcast media outlets including the Sacramento Bee, San Jose Mercury News, Los Angeles Business Journal, KNX Radio in Los Angeles, and Capital Public Radio in Sacramento. An accomplished presenter, Mr. Levine has regularly delivered information on the state budget and economy to the California State Controller’s Council of Economic Advisors and delivered the state forecast at Beacon Economics’ annual high-profile regional forecast conferences.

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Mr. Levine specializes in analyzing economic indicators such as real output, employment, demographics, home prices, consumer spending, and new construction. He also has extensive experience analyzing the U.S. economy including gross domestic product; international trade; money, credit, and banking sectors; employment and labor force; and real estate markets.

Prior to joining Beacon Economics, Mr. Levine was an analyst with Quant Economics Inc., where he studied and predicted the economic effects alleged in business disputes for a wide variety of clients. Projects he managed while at Quant helped to discover hundreds of millions in monetary damages for his clients.

Mr. Levine’s academic background includes an emphasis in international trade, monetary economics, and micro/macroeconomic analysis. His research on the manufacturing industry resulted in an innovative technique to measure the effect of global trade on U.S. employment. He is a member of the American Economics Association, the Econometrics Society, and the National Association of Business Economics.

Mr. Levine holds an M.A. in International Economics with Merit from the University of Sussex and a B.A. in Business Economics from the University of California, Santa Barbara.

Rafael De Anda is Research Project Manager at Beacon Economics, LLC. Under the current RFP, in addition to conducting data analysis and research, Mr. De Anda will be responsible for ensuring the overall schedule and process for completing the analysis. In his role at Beacon Economics, he plays a key role in the firm's principal research projects including conducting extensive high-level data analysis of leading economic indicators in the Inland Empire, the Central Coast, and other regions across California. He also has significant expertise in performing econometric analysis, maintaining and managing extensive databases, conducting research in support statewide economic forecasts, and assessing the economic impacts of private and public programs, policies, and events. Prior to joining Beacon Economics, Mr. De Anda served as a research assistant with the Los Angeles County Economic Development Corporation Kyser Center where he co-authored numerous reports including analyses of international trade and an annual regional economic forecast and industry outlook. Mr. De Anda has an academic background in global economics and forecasting. Fluent in Spanish, he is highly proficient in a variety of economic and econometric software programs including STATA, EViews, and SPSS.

Mr. De Anda holds an M.A. degree in Economics from California State University, Los Angeles, and a B.A. degree in economics from the University of California at Riverside.

Dustin Schrader is Public Policy Manager at Beacon Economics, LLC. Under the current RFP, Mr. Schrader will be responsible for conducting a literature review of the enactment of alternative minimum wage ordinances and for identifying how these compare to the proposed Los Angeles ordinance. This research will include an analysis of a timeline of implementation options,

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enforcement options, and categorical exemptions, as well as a summary of the findings of other studies that examined these increases and their economic impacts.

Mr. Schrader plays a leading role in Beacon Economics’ principal research projects including performing econometric analysis; studying California's regional economies; assessing the economic impacts of private and public programs, policies, and events; and conducting economic policy analysis. In 2012 he was a lead researcher on a major economic impact study that examined the effect of a large music festival on a regional economy. He recently published a coauthored op-ed on 'NIMBY'ism' at LAX in the Los Angeles Business Journal and he regularly authors the "Demographic" and "Business Activity" chapters in Beacon Economics' regional forecast books, which serve as centerpieces for large, annual forecast conferences held across Southern California.

Mr. Schrader has an academic background in econometrics and research experience in both the public and private sector. Prior to joining Beacon Economics, he served as a research assistant for the Division of Social Sciences at the University of Chicago, examining electorate and demographics data primarily at the municipal and county levels. He has also served as a staffer and policy researcher for two members of Congress in the Illinois Delegation.

Mr. Schrader holds an M.P.P. degree from the University of Chicago and a B.A. degree in Political Science from the University of Illinois, Urbana-Champaign.

Eric Meux is a Senior Research Associate at Beacon Economics, LLC. Under the current RFP, Mr. Meux will be responsible for supporting the overall research process and will contribute to a variety of data and methodological functions. He plays a key role in the firm’s data analysis, modeling, and other research functions including conducting public revenue forecasting, international trade analysis, and managing and organizing the many large and complex databases Beacon Economics employs. His analytic work has been used by clients including the Transportation Corridor Agencies of Orange County and the African Cashew Alliance located in Benin, Africa. He was also instrumental in preparing a cost-benefit analysis for an education proposition that appeared on California’s November 2012 statewide ballot. Mr. Meux has extensive expertise in conducting consumer demand analysis and in applying mathematical and statistical analysis to assess the economic impacts of programs and policies. His professional experience also includes working with a variety of data software and conducting macroeconomic forecasts for labor and commodity markets.

Prior to joining Beacon Economics, he was a research associate with the Department of Agriculture and Resource Economics at the University of California at Berkeley. In that role he managed and enhanced economic models, and managed and analyzed data related to Federal, state, and local revenues and expenditures. He previously served as a research assistant in the department where he oversaw training for an undergraduate research team.

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Mr. Meux holds an M.S. degree in agricultural and resource economics from the University of California at Davis and a B.S. degree in environmental economics and policy from the University of California at Berkeley.

Brian Vanderplas is a Senior Research Associate at Beacon Economics, LLC. Under the current RFP, Mr. Vanderplas will be responsible for supporting the overall research process and will contribute to a variety of data and methodological functions. He is responsible for building and maintaining a wide variety of complex databases that support the firm’s projects and statewide and national economic forecasts. In addition to preparing, cleaning, and seasonally adjusting data, he has extensive experience using a wide array of economic and econometric software programs including STATA, EViews, and SPSS. Mr. Vanderplas conducts regional economic analysis and authors the ‘demographics’ and ‘quality of life’ chapters in Beacon Economics’ regional economic forecast books. His academic focus included transportation economics and international trade and development. He has conducted graduate level research on the educational attainment level of migrant populations and on fuel consumption as it relates to population density.

Mr. Vanderplas holds M.A and B.A. degrees in Economics from California State University at Long Beach.

Maximilian Saia is a Research Associate at Beacon Economics, LLC. Under the current RFP, Mr. Saia will be responsible for creating a demographic and economic profile of the workers potentially affected by the proposed minimum wage ordinance in Los Angeles. To add comparative value, he will also be responsible for creating a similar profile attached to other areas with recently implemented minimum wage increases.

Mr. Saia is responsible for supporting all of the firm’s major research projects and statewide and national economic forecasts. This includes building and maintaining a wide variety of complex databases, running statistical programs, and participating in conducting original analysis. His academic interests include monetary economics, financial economics, macroeconomics, and time series econometrics. He has work experience in the education, manufacturing, and finance industries and has participated in Morgan Stanley’s Financial Training Program.

Mr. Saia holds an M.A. degree in Economics from the University of Southern California and a B.A. degree in Economics from the University of California, Davis.

Alan Hooper is a Research Associate at Beacon Economics, LLC. Under the current RFP, Mr. Hooper will be responsible for cleaning and processing the last two years of confidential data for the City of Los Angeles. He will also be responsible for creating a variety of maps that will be used to illustrate where minimum wage jobs are located in the City.

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Mr. Hooper is responsible for supporting the firm’s principal research projects including conducting econometric analysis, working with Beacon’s proprietary statewide and national forecast models, and managing a wide variety of complex databases. He has extensive experience using economic and econometric software programs including STATA and SPSS. Mr. Hooper previously served as an Assistant Director at Southern Regional Model United Nations where he researched United Nations policy and moderated debates on a wide range of global economic issues. He also conducted graduate level research on Federal government policies related to crop insurance while a Graduate Research Assistant at Clemson University. This work included designing qualitative surveys to assess participants’ use of different risk management techniques.

Mr. Hooper holds M.A and B.A. degrees in Economics from Clemson University.

Christian Cruz is a Research Associate at Beacon Economics, LLC. Under the current RFP, Mr. Cruz will be responsible for supporting the overall research process and will contribute to a variety of data and methodological functions. He plays a key role in supporting the firm's principal research projects including conducting econometric and advanced data analysis. He is highly proficient in a variety of economic impact and econometric software programs including RIMS II, IMPLAN, and EViews, and has significant expertise in performing time series analysis, maintaining and managing large databases, and developing and analyzing complex economic models. Prior to joining Beacon Economics, Mr. Cruz served as a contract economist with ICF International where he performed a wide variety of economic analysis. In his academic career, Mr. Cruz conducted research that used multivariate regressions to determine the effect of policies on educational attainment, labor force participation, and childhood obesity. He also used Federal Reserve Data to accurately forecast GDP growth.

Mr. Cruz holds an M.A. degree in economics from California State University, Fullerton, and a B.A. degree in business management economics from the University of California at Santa Cruz.

E. STATEMENT OF THE PROGRAM Beacon Economics proposes to deliver an economic impact analysis of the proposal to establish a required minimum wage of $13.25/hour by 2017 in the City of Los Angeles, then increase that wage to $15.25/hour by 2019, and then follow those increases with annual increases based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Los Angeles metropolitan area. In the 25 to 30 page report, Beacon Economics will provide a statistics-heavy analysis with charts and tables that will quantify the positive and negative impacts of the proposed minimum wage increase.

The questions Beacon Economics proposes to answer are:

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• What is the actual number of workers who would receive a wage increase under this new structure? How many of these workers can be classified as economically distressed? How many would fall into other categories, including tipped workers, interns or younger workers, or others who live in households with other higher sources of income? How many workers who live outside the City would receive wage increases? How many workers who live inside the City would not receive wage increases?

• Is the proposed timeline of minimum wage increases ideal, or are there better implementation options? Once automatic wage increases take effect, what is the best way to implement them? Do bases and ceilings need to be considered?

• What is the actual wage impact on the City? How many businesses and specifically what kinds of businesses would see their wage bills raised substantially? How might this theoretically impact employment in the City according to mainstream economic thinking? What are the pros and cons of categorical exemptions or other solutions that reduce potential negative impacts of the proposal on specific industries?

• Where are the businesses that would be impacted located? How many operate within 2 or 3 miles of the Los Angeles border, and how much would their costs be cut by moving 2 miles? What might be the fiscal impact of these employers moving?

• How does this minimum wage plan differ from others being enacted around the nation? How does the Los Angeles city economy differ from these other locations? How might this affect the potential positive and negative impacts laid out above? How does the overall labor regulatory environment vary relative to these other places? What options for enforcement of minimum wage ordinances are other municipalities pursuing?

Section 1: Profile of Workers Impacted by the Minimum Wage Ordinance. Beacon Economics will compile data from various sources to estimate and create a profile of workers in the City of Los Angeles who earn between $9/hour and $13.25/hour, as well as workers who earn between $9/hour and $15.25/hour.

This profile will include a full demographic profile, average and median wages, and when applicable, workers’ costs of living. This profile of City of Los Angeles workers who will be impacted by the proposed minimum wage increase will be compared and contrasted with profiles of workers located in other municipalities that have recently passed similar minimum wage ordinances.

The primary source of data will come from the American Community Survey (ACS), which is a self-reported survey administered annually by the U.S. Census Department. Beacon Economics

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will utilize ACS survey responses, made available through the Public Use Microdata Sample (PUMS), to infer the number of workers employed in the City of Los Angeles at various wage thresholds relevant to this study, and extract information about their earnings (including tips and commission), household incomes, daily commuting tendencies, and age.

Beacon Economics will also utilize data from the Current Population Survey (CPS), another self- reported survey that is administered by the U.S. Bureau of Labor Statistics and the U.S. Census Department. The monthly CPS, better known for its headline unemployment rate, provides alternative worker information, such as wages for workers paid on an hourly basis.

A third source for data for this research will be the Occupational Employment Statistics (OES) survey. This data is collected from various businesses and will help identify the occupations of workers affected by the proposed ordinance.

Section 2: Impact of the Minimum Wage Ordinance on Local Businesses. Various research reports show that some workers will be at risk of job loss if the minimum wage is raised as proposed. Beacon Economics will provide a description of the types of businesses that are most likely to face higher wage costs and are thus likely to contract their staffing patterns.

For example, the ordinance could have potentially adverse effects on various industries in several key ways. First, the increased costs – particularly at retail stores, eating and drinking establishments, and hotels – associated with the wage increase could be passed along to consumers, ultimately leading to price increases in the City of Los Angeles. To the extent that these changes are not adopted uniformly across the region, this could impact the City of Los Angeles by making it less competitive with neighboring areas. This would cause business demand to fall in relative terms compared with other areas and could offset the increased spending by workers. In turn, this would reduce the demand for workers, thereby reducing the direct and indirect effects of the wage increase. Secondly, with less spending in the City of Los Angeles as a result of higher hotel room rates, the City could lose some of the economic output that had flowed to the area from visitors before the wage increase. This reduced spending could also reduce the demand for employment throughout the City.

In addition, Beacon Economics will provide a description of the types of businesses most likely to be affected by the ordinance due to their proximity to surrounding cities. This primarily refers to businesses located within two miles of the City’s long and porous borders, who would have to compete with similar businesses located on the outskirts of the City. This data will be obtained from the business-by-business, confidential Quarterly Census of Employment and Wages (QCEW) data from the California Employment Development Department (EDD) and such businesses will be flagged using geographic information software (GIS).

- 16-

Section 3: Literature Review of the enactment of other Minimum Wage Ordinances throughout the United States and how they compare to the proposed Minimum Wage Ordinance in the City of Los Angeles. Several studies of minimum wage/living wage ordinances have been conducted in other areas. Beacon Economics’ proposed report will include a review of these studies as well as a summary of the pertinent findings. This includes establishing an understanding of minimum wage/living wage ordinances passed within Los Angeles as well as other minimum wage/living wage ordinances/issues in Seattle, San Francisco, Santa Monica, Emeryville, Petaluma, Pittsburg (Pennsylvania), and Coney Island in New York. This literature review will compare such ordinances with the ordinance proposed for the City of Los Angeles.

Beacon Economics will also look for literature related to the minimum wage/living wage as it pertains to small businesses (which generally have tighter margins), charity organizations, and other non-profit institutions. Beacon Economics will also examine the potential bureaucratic issues government agencies may face in dealing with multiple overlapping wage bills.

F. FEE FOR SERVICES Beacon Economics LLC’s fully-burdened hourly billing rates for all personnel categories that will be utilized under this RFP are as follows. These rates incorporate direct costs, indirect costs, overhead, and profits. Also provide below are the estimated number of hours that will be spent at each stage of the project. The total fixed price Beacon Economics is proposing is $42,925.

City-Approved Rates ($/Hour)

Partner $300

Director $250

Research Manager/Senior Researcher $150

Research Associate $100

Research Manager/ Senior Researcher Research Task Partner Hours Director Hours Hours Associate Hours Cost

Literature Review/Research 0.00 1.00 10.00 20.00 $3,750

Data gathering 0.00 1.00 20.00 50.00 $8,250

- 17-

Data analysis 5.00 10.00 20.00 60.00 $13,000

Creating graphics 0.00 1.00 10.00 30.00 $4,750

Report writing 2.00 5.00 10.00 50.00 $8,350

Copyediting 0.00 2.50 8.00 16.00 $3,425

Formatting final report 0.00 0.00 4.00 8.00 $1,400

Total $42,925

G. CONFLICT OF INTEREST Beacon Economics LLC certifies that it has no actual or perceived conflict of interest with regard to this project.

- 18-

APPENDICES

• STANDARD PROVISIONS FOR CITY CONTRACTS / CITY INSURANCE REQUIREMENTS

• AFFIRMATIVE ACTION/NONDISCRIMINATION PROGRAM

• AMERICANS WITH DISABILITIES ACT POLICY

• CHILD SUPPORT ORDINANCE

• CONTRACTOR RESPONSIBILITY ORDINANCE

• EQUAL BENEFITS ORDINANCE

• LIVING WAGE STATUTORY EXEMPTIONS

• SERVICE CONTRACT WORKER RETENTION ORDINANCE

• LOS ANGELES RESIDENCE INFORMATION

• NON-COLLUSION AFFIDAVIT

• SLAVERY DISCLOSURE ORDINANCE

• FIRST SOURCE HIRING ORDINANCE

• CITY ETHICS FORM 50 – BIDDER CERTIFICATION

• BEACON ECONOMICS LLC BUSINESS TAX LICENSE

• BEACON ECONOMICS ARTICLES OF ORGANIZATION

- 19- l'orm Gen. 146(Rev, 3/09)

Exhibit I (Continued) Required ln!iurance and Minimum Limits

Name: Beacon Economics, LLC ~- Date: --'--'-'-':::!!.!i"'-'::L------Agreement!Reference: RFP for the Citywide Minimum Wage Evidence of covemges checked below, with the specified minimum limits, must be submitted and approved prior to occupancy/start of operations. Amounts shown are Combined Single Limit$ ("CSLs"). For Automobile Liability, split limits may be substituted fot a CSL if the total per oc~.urrence equals or exceeds the CSL amount.

_x Workers' Compensation Workers' Compensation (WC) and Employer's Liobility (EL) we Stgruwzy EL $1.000,000 D Waiver of Subrogation in favor of City D Longshore & Harbor Workers 0 Jones Act

.._K (leneral LiabUity ------­ . $1,000,000 (]] Products/Completed Operations 0 Sexual Misconduct ___~-- 0 Fire Legal Liability---··- 0 ______~--~------

Notes: EaCh Occurrence ($1 ,000,000)/D;.:~t'i'\age to l"'remtses ($1,000,000)1 Personal arm :z!idv ln.1utY ($1,UOO,UUUft JGJorl!lg;'lte ($1,00rJ,d0UJ

-lL Automobil• Liability (for any and all vehicles used for this Contract, other than commuting to/trom work) SEE NOTE Note: All Yehicles mul$t be pro.e~~Y in31.1red in ol'd~r to park on Ctly property.

-"- Prof.. sional Liability (Errors and Omissions) $1 OQQ OOQ Dl::ioovery Period ~ 12 ~.?~ths After Com.elfrtion of Work or Da!e of Termination

_ Pl"operty lnsuranee (to oover replacement co$t of building- as determined by insurance company)

0 All Risk Coverage D Boiler and Machinery D Flood D Builder's Risk 0 Earthquake D ------

_ Poll~tion Li•bllity o ______

_ Surety Bonds- Perfotm.a.nce and Payment (Labor at"ld M.at~rials) B{:mds 100 % of Contract Price _ Crilne l:osuram:e

Other: ...lJ.-lf..at;otttractor h!J:!!; no employMs and detides to r.ot qwpr be'i'elflhimaetffor II'!!Prkers' compAtJSBfiop ~)lease complete lbe forr» ljmtjtiAd "~quest foe W;;,jyer of Worker§.' ComMMatjon InS! tranee ReqUirement~ lopated at http)JMcjly orgfmpfrjskllnsurantefg!TD& htm ' 2\ In ttw abse,n® of' jm005ft!1 :Mrto ti(jbiljty ffiQllirem~mts an conttaaors ttsjog \(Qhtclu durlng tM coyrse pf th,jr CQt'tlr»qt mual MMI'$ to toe flnancral responsibility laws of the State of California.

STANDARD PROVISIONS FOR CITY CONTAACTS (Rev. 3109) 22 ...... -... I 1-'A'J'E(MMil;!Dfi'Y'f't') ;'\__CC!-Ril CERTIFICATE OF LIABILITY .INSURANCE 12/9/2014 tHIS CI!JlT01CA'I'E 15 ISSUED A$ A MAlTER OF IIIIFORMATION OI\ILY AND CONFERS NO RIGf.41'$ UPON THE cmmRC"A'TE HOLDER. ll'R$ CI!R't'fF:IOA'TEi iJOU NOT Af'FjftMJI.rtVEI.Y Of;. NE

III/IP($1'ANT! It the certltiem ~oldtr 19 liA'I ADDITIONAL INSUru!D, 1M JX~Jit-y(ifl$1) m~i ~ill 'IK!di:!lll;ad. Jf 6UBROGA'rii;)N 13 W~, sub.I8Ct to tbli iclllff!S. 1111'1d oortdiiloi1.S Qf UN policy. ~IQ j)QIIcil!l!'l ri'IIJ,Y Ntquire iM ttl'ldQr'$em&nt A s~men.t ort thl.s ~q:rtj~' do~:~t not QOtlfer l'igtd:il to th& ce~ tK!IIdi:w 1n 11-.!.u d H~:~h ~~~,~). """"u'"" ~~~· G F BROWN lNS SEaVlCE LLC Ll~Nrl-~: (510)524-881.:! lf~.No): (510)524-6662 ttn~versity A~e 1474 PMB# 145 I :

Berkaley, CA 94702 ftiiS'UREit.(tl.) .AI"I'OROIII!G ~lll2 01!'09607 ' 1""""""" Hartford Ce.sualty :tnsuranee '""' '"'""'"' Beacon Economics LLC 1"'""''"; 8art:t:o:iol\<>e:i.dent & Xlld<>tmit:y C:o 5777 W Century Blvd #895 !NSURGR C: Gemini In5u~ance Co L<:ls Ageles , CA 90045 INiiliRER D:

(415) 457-6030 JNII;~RE: !415)488~7195 INSlJRER F: ¢1A't~ 000,000 1-- ' 2 !!f~ODlJ.CTI:1;- C.~.r¢1' AG~ 2,000,000 ,ntAOOREni~:Pun~ ' PQUCY JSQT LOC • AUtOWOI\!1.1! l.WijjU'J'V , ~r.:=nt).SINIJI.E UMIT I 1,000,000 1-- iiOOILY I~URY 0"'«' L'ltr.!(lhl f--'- ANYAuto • AlLO\i\IN!b - :3-I.':Hi!!Q~lll':tD 57SIIAJ:C7970 04/01/:1.4 04/01/15 f:/.OI!IIlY INJURY if'~' ~~r~:.~;k:0111) A AVlB:EAi:;);:. • EA EMPLOYI!!I! 1,000,000 lt.Y"'dl!llotlboi.I!ICklr DE&O~!PTION OF OPEiRA'I'IONe III!IIDW €'·L bi9EASE • POI.J¢V IJM'IT ' 1,000,000 0 • ~ua1 ~egata: $1,000 1 000 c B~~o~ & Qmiaison VC11LOI525.21 2/1/2014 2/1/20:1.!! ll;ach Cla.i.la: $1,000,000 Ded/S!R: $5000 1:10r o1aitn ~lf'TlON Of" Ol"'!:i't.A't"'I~ I LOOAT'IOJII;$/ VEHIDLEa (Atl!l.di ACORD 101, AMitluool RMIIiltb Stt!!!dt!lil, 4f mt>r'.' I;Jia¢o b ~t~ P~oof of Ins~anoe only

C~11FICATE HOLPER CANCeLtJI TION City o£ Los Angeles $HOUlO ANY ¢1= TI-lE ABOve! OESGRIBED POU~IIi:iS BE C.I\NCCLLCO BIEFI..)RE 200 North S~ring street THE ~IAAT.ON (.)ATt:;; THEREOF, NOTICe! INJ!..t. BE clll:LMSR!i:D IN LOI!I Angeles , CA 90012 AeOOfi!DANCE' Wl't'H THE POLICY PROVBIONS.

Aln'HO~~eD Rl f'£

AFFIRMATIVE ACTION PLAN

The following contracts are subject to the City of Los Angeles Afflrnlative Action Program as required by the Los Angelo• A&niniotr•tivo Code (LAAC) Section 10.8.4 et seq.:

• Every non-construction contract of$1 00,000 or more; • Every construction contract of $5,000 or more.

Purp<>S< - An affirm.ative action program is a management tool desigtted to ensure equal employment opportunity. A central premise underlying affirmative action is that, absent discrimination, over time a ~;:ontr~v::tofs workfo~ce, generally, will ret1ect the ge:nd~, racial li:ll)d ethnic profile: of tht: available labor poOl$. Therefore1 as part of its affirmative action progratn, a contractor monitors and examines its employment decisions and compensation systems to ensure equal employment practices, and takes steps to correct underutiJ.jzati.on of women and minorities.

Co.~tra

L.HC Section 10.8.4 (B) The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to their race) religion, ancestry, national origin~ sex, se:xu.al orientation, age, disability, marital status or medical condition.

LAAC Section 10.8.4(K) The platl shall be subject to approval by tho Office of Contract Compliance prior to award of the contract.

LAAC Section 10.!i.4(M) The Aflltttmtive Actlon Plan required to be submitted shall, without limitation as to the subject or :nature of employm~::~nt activity', be concerned with such employment practices as:

I. Apprenticeship where approved programs are functioning, and other on-the-job training for non-apprenticeable occupations; 2. Classroom preparation for the job when not appwnticeable; 3. Pre-apprenticeship education and preparation; 4, Upgrading trai.ni.ng and opportunities; 5. Encouraging the use of contractors, subcontractors, ond suppliers of all racial and ethnic groups, provided, however that any contract subject to this ordinance shall require the contr:actor, subcontractor or $upplic;::r to provide not less tba.n the prevailing wage; 6. The entry of qualified women, minority and all other journeymen into the indu

LflAC Section !0.8.4(Q) All contractors subject to th.e provisions of the section shall include a like provjsion in aU subcontracts ~warded for work tq be pc:rforme::d under the contract with the City and shall impose the same obligations, including but not limited to filing and reporting obligations, on the subcontractors as are applicable to the contractor.

OCC-AA-1 (Rov 6-5-12) CONTRACTOR .DECLARATION ln pursuit of accomplishing the intent of the City's Affi:rmative Action Program, the contractor certifit:::i:i WJd agrees to immediately imp!emetJt good faith efforts, measures to recruit and employ minority, women, and othor potential staff in a nondiscriminatory manner including, but not limited to, the following actions. The contractor shall:

(a) Recruit and make efforts to obtain such employees.

(b) Continually evaluate pe:r.sonnel practicer; to assure that hiri.og, upgrading? p:romotions1 transfers, demotions and layoffs are made in a nondiscriminatory manner so as to achieve and maintain a diverse work force. (c) Utilize training p;og.,.ms and a$sist minodty, women and other employee• in locating, qualifYing for and engaging in such training programs to enhance their skills and advancement. (d) Maintain such records as are necessaty to detennine compliance with equal employment and affirmative action obligations, e.nd making such records available to City~ State and federal atlthorities upon request. (e) Said policies shall be provided to all employees, subcontractors, vendors, unions and all others with whom the contractor may become involved in fulfilling any of it• contracts.

Requirements For Coust.-uction Cont.-actors ONLY

Construction contJ:actors are additionally subject to all provisions contained in LAAC Section l 0.13 et. seq. which c.an be found at hrtv:ffhca.lacitv.\")rg. A:> part of these pNvisions, construction contractors are required to:

!. Submit an Anticipated Employment Util.ization Repo.rt (AEUR) with each new bid tor purposes of effectuating this Affirmative Action Plan for the specific project. The AEUR can be found in the bid documents or at http:/!Qca.lacity.or~.

2. Establish a person at the management level of the contra<:ting entity to bo the Equal Employment Opportunity (EEO) Officer. Such individual must have the authority to disseminate and enforce the compony's Equal Employment and Affinnative Action Policies.

E-MAIL PHONE NUM!!ER.

8y its exec~tion hereof~ th~ tontrac:toJ:' accepts and subnlits the::: foregoing as its Affixroative Actlo.l.l Plan. I certify under penalty of perjury under the laws ofthc State of California that I have r••d and understood the foregoing requirements of LAAC Section 10.8 et seq. Md agree to comply with them while under contract a.s set forth therein. 8 December Executed this day ______,tot . h e year 20----.Jo14 at LO$ Angeles CA (CITY) ,~.

31 0~571 ~3399 I sherJf@bci!l.conecon.com

57?7 West century Bouleval't:l, Suite 895

Sherif Hanna, Managing Partner Los Angolos, CA 90045 ern. coUNTY, STATE,_,Z;;;rro:---- CITY OF LOS ANGELES

NONDISCRIMINA TJON • EQUAL EMPLOYMENT PRACTICES CONSTRUCTION & NON-CONSTRUCTION CONTRACTOR

Los Angeles Admini~tntive Code (LA.AC), Division 10, Ch.:apter l, Article 1, $cctioA J 0.8 ;!' Angeles, hl letting and awarding contracta fol:' tbe provision to it or on its behalf of goods. or sei'Vices of any kiod or nature, intends to deal only \Vith thos~ contractors that COO:l,J)IY ~tith thli!i r:wn~disctimin:~.ti.o~. Md ,IIJ'fimHltivc Action. provislOI'I~ of tb.e; Jaw;S of the UWted S~ate.s Of America, me Slate of Califom.ia .a.o.d the City of Los A.n~ll:$. the City and each of its awarding .authorit.i¢..'5 shall therefore l:'equire that any pet'llon, fiO"rl, corporation, p.a:rtJI.ets.hip or combit1.:t.tio~;~ th.e~f, that contr;:wtr,; w:ith the City fur ,,c.rvi.ce:~5, materials or ~uppJJ~::;, ~h

Notwithstanding any oth!lt provision of any (ll.'diA~Jl.¢e of the City of LOIS Angeles to the CQI)t):'a.J:'y, every' contract which i~S t(!t, awarded or ente~d into with or on behalf of the City of I .os, Ar'IJJ:elet::, shall contain by io$ertJc:m. therein a pr¢vi~~"~ t:JbUg:Eiting the corttractQr j!'). the perfonnauct!l 1).( such con.t:::ra,ct oot tl? discriminate ili his Dr her employment pta¢tices against ao.y employee or applicant fo.~ em.p)(lyment becaus~ oftbe applicant's race, religion, national (Jrig:in, ano::estcy, sex, sexuaf Qriep,Qltion, age, di$ability, roruital status, d¢me:~tjc: p.wtn.er statui!!, or ro~jc:;s.J, t,:OI'ldition. All contractors who etlter into such contracts with the City shal) ~~cb.1de a tike provision jo all subcontracts awarded fol' work to be performed \lnder the con.tr~c:~ '-'"'ith. tOe City. Failure qf th.~ contractor to comply wHh this roquin:;~mcp,l or to obtain the c:a?mpH.,.,ce of it~; ~;ubcom:m.cror:s wJth such obligations shall subject the contractor to the im.pos:itkm of any and an $;).UCtions allowed bY law, in<:tuding but not Uro.i.ted to termination of th!! contt;ae:t:ot~ ~ cQ~ll;;a..:t with the City. II. Los Angeles Administrative Code Section 10.8.3. Equal Employment Practices Provisions

Evtery non~construct:ion. coo.tra.ct with or on b~a1f of the City of .Los Angeles for which the consideration is. $1,000 or more, a.nct every CO!lSLrut::ti.tm t:OI'Itmct for which dl,e COMlderation is $l,OOO or more, shall cof!t:)j:n, th(! following provisioM, whkb :shall be designated as the EQUAL EMPLOYMENT PRACTICES provl$lOn of such contract~

A. Ourin_g tt)e perfotmartc:e of thh contract, thl'l coJ;~.tr=tot:" agrees and r!:'p~::;cnt~ that it will pn;wid.:; Qqval employment pmtices and the cotAtractor and each subcoott"'.u:tor hereunder wHl e:n.su«: that in h,il) or h~r (!mployment pract:lc¢$ p~rsons are employed and employee$ at:e treated equally and wlth0~1t regard to or becau$e of ~::a.cot, nligkm • .ance.o;.try, nationill (lrigil'l, :os.ex, sexual otie~uat.i.IJn, ~,disability, ro.afHal status or medical condition.

l, This provjsjon applies to work oc servi~e perfonned or materials manufactured Qt <~.!>:

2. NQth.i.~ ~~ this sectioo ::shalll,"'!iquire or prohibit t,be: I(!.Stablishment or new (:\a.ssit'ic:ations of employees in any given craft, work or serv-ice c:ategofy.

:3. The COI'ltrac:tor agrees to j)Ost a copy of P.ar-a,gr

B. 1.'b~ contractor \\i.JJ., i.n all solicitation$ or advertisements for employees placed by or on b!:l,half of the contract()(, sl:.~.te t!'ltl.l. ~~~ qualified applicam:$ will receive COU$i<.kration for employment without re.gad to their race, ndigion. ancestJ:)', !')ational origin, se~, $/J!i'!;Uai orientati'o.n., age, disability, marital status or medica) condition.

C. As pm ofth.fi: City's aupplJer rcgist:rat.ll)n. pro.:el!li!i, and/or al Lht:: ~quest of r.he awarding authority, or the Board ofP\lblic Works, Ofl.'ke of Cor\tract Compjja.l)ce, the contractor shall certify io. the specified foUY~at that he rn: sh¢ has not di!:icrlroinated in the perfotrt~anc:e of City .;:DTJtracts agaiw;t n.n.y employee Qr applicam f(lr t::mployment Qn Ill¢ basis or becaus!f\ Of race, rells,i.oo, national orl.@;.io., ancestry, sex, $~ual otieo.tati.on, age, disability, marital status or medical cQUditic:m,

D. The contractQ( shall permit access to aod may be requjr¢d to provide certified copic::s Q{ :Ul of his or he:r re-cords percafrdng to employoo.eut and to ~mployment practices by the aw3fding: authority or the ()ffic:e of C:onttact Compliance for the purpos~ of investigation to ascertain compliance with lh.li!l E-qual Employnu:m• fr~ctices provi~QOS of City oontxul:lt$, On their qr ~!.hll!r of thelt ~u~t the contracror stlilll provide evidence that he Qi' she has or will comply therewith.

E. The failwt: of~ ¢0ntract0r to comply with the Eq\.lul Emp!Qymeo.t hacti~es proviskm.s of this cont{act mey be deemed to be a rnawcial breacn Of City contract:;. Such failll:('e shall only be f".Sta.bHshed upon a fiodhl.g to that el.'f~t by the awardifl,g authority, on tb~ basis of it) >)\vrl investig:atioo (ll." that of th~ Board of Public Wo.\'ks, Office Qf C

Form OCCIND-EEP-1 (7111) 1 :(i'_ Upon a :G11di~g duly made that the Cl)t~tr..\!Ytor hi$ failed to comply whh tbe Eqtlal EmpJcyyrnent Pract,ice~; provisi

G. Notwithstanding a.ll>' other provjsio~i of this cQntr.\ct, the City of Los Angeles .:~hall have any Md all other tetnedies at law or in equity fot .my breach ht!!'Mf.

Q. nu:: .Bo;u;d qf Public WQTk; ~hall J:)rilml.llgate rule~J a.m.l regulations t)1rough the Offlte of Cont1:3ct Compliance, aod provide oece.:;sary form.s ~d R!Quired language to the awarding authorities to be included in City Request for Bids or J'{equest fof Proposal packages or in supplier wgistration ~quin:mcnts f(lr tho: impleme11l

I. Nothing contain.ed it:l this contract shall be constl:\l(>.d in any n).a~ww so as to requl~e or permit .a.o.y act which is prohibited by law.

J. At the time .a $lJ.pptier registei'$ to do business with the City, or ...Wen an individual bid or pi'Qposal is submitted, t}J$ contr.a.ctol." ~>h.o.H agree ro adhere to the .t:qvat EmployroeM Practices specified herein during the perfonnance or condliCt of City Contracts.

1(. Equal Employment Practice::$ shall~ without limitation ~$ to the .subject or nature of employment activity, be concerned 'With .suc\l employment ptaet;kc:.:; M;

l. H.iring practices;

3. Training <~.nd pr.o.q~otiooal opportunities; and

4. Reasonable accomn;odation.s tot persons ,.,,ith dis~bilities.

L. All c:ontractors $\lbje(;t to the pr<.wisionl;l Qf t.bi$ section :;ibaH iflc:lude a like provision in all subcontracts awo\\l'ded for WQ(k to be pclforrn,ed l.lrader the c:cy~I:I:'$.Ct 'Nith the City and shall impose th~ ::~a:m~ obligatloos, including but fjot limited to filing and re,PQt'ti.ng obligations, on the !sot.lbcontractol"$ as are applicable to the contr.actol', Failure of the contract()(' to comply with thi$ ~uirement Ql' to obtain the compliance of jt$ e.ubcon.trooto~ with alt ~uc:h obligation~:~ ~h:.tll .subjec[ tile cor~tractor to t))e: imposition of *.tiY and all sru;~ctiOIJ:5 allowed by law, including but not .lit):)lted to terrn.inatioo of the contr.at::toc's contract with the City.

Equal Employment Practices Provisions Certification - The Contractor by its signature afthed hereto declares under penalty of perjury that:

l. The Contractof has read the Nondiscrimioa.tion Clause in Se¢tion I nbove an.d certifie-s th.a.t it -.viU adhere to the practices in the perfonn.ance of all CQI)tracts. 2. 1he Contra.ct()t hM read the Eq~,~a.l Employment Practices Provisions as contained in Sectioo :U above and c fl~s that it wiiJ adhere to the: prnctic

Beacon Economrcs, LLC t:/J 4....--1.__

COMPANY NA.MS

5777 W~st Century Baurevard, Sulte 695 Sherif Ha.nna, Managing Partner

NAME ANP nTJ..);) (TYI'i!! OR. PR.INT)

Los Angeles, CA 90045 310,571-3$99/ sheti1@b!l!aconecon.com

Crry, COUNTY, SlATS, VI'

Form OCC!ND-EEP·l (7/11) 2 CERTIFICATION REGARDING COMPLIANCE WITII THE AMERICANS wrru DISABILITIES ACT

The undersigned certifies, that to the best of his/her latowledge and belief, that:

1. The Con1ractor!Borrowe:r/Agency (hereafter Contractor) is in oompliance with Md will continue 1D comply with the Americans with Disabilities Act 42 U.S.C. 12101 et ~ and it nnplementing regulations.

2. The Co.ntractor will provide for reasonable aocoJJl!nodaiions 1D alk>w qualified ' . individuals with disabilities to have access to and participate in .its programs, services and activities in accordance with the provisions of the A:tnericans with Disabilities Aot.

3. The Contractor will not discriminate against persons with disabilities nor against persons due to their relationship or associB.tion with a person with a disability.

4. The Contractor will require that the language of this certification be included in the award docnruents :fur all subawards at all till!'s ('mcluding subcontracts, subgrants, and contracts under grants, loans and cooperative ContJ:acts) and that all subrecipients tlhall cettify and disclose accordingly.

5. This certification is a !llaterlal representation of fact upon which reliance was placed when the patties entered into this transac:fion.

ContractNumber_-.:::C:.:.:it:LYW~id:.::e:...:M~in_,_im~uc:,:m~W,_,a""g..,e'-'A'-"--"na"'!I!Lys~i~s-...:...... ____

CONTRACTORffiORROWEWAGENCY Beacon Economics, LLC

mey.REPRESENTATIVE /""'"'"''if_ Hanna, Managing Partner

SIGNATURE__,.~~a~:::=:::::::=:=====------DATE Dec mber 8, 2014

~~819 a~/S:Pfl'p!:C.OO

B.c.v. l/01 ., '

CE~TIFICATION OF COMPUANCE WITH CHILD SUPPORT OBUGATIONS This document must be returned with the Propo!llii!Bfd Response The undemi~Jned hereby agrees that Beacon Economjcs, LLC wtll:

Name of Business/Borrower

1. Fully comply wHh all applicable state and Faderel employment reporting , r.qulremenlol for II& employees. 2, Fully comply with and Implement all lawfully sel'\led Wage and earnings AJ;slgnment ' ' Ordern and Notices of A$$lgnmenl

3. Certify that the principal owner{s) of the business/the Borrower are In compliance wHh any wage and Earnings AS$1gnmerit Ordem and Notice& of Aoslgnment nppUcable to them per110nally.

4. Certify that the businBs!!113orrower will maintain such compliance throughout the tarm of the contract.

5. This certification Is a materiel representation of fallt upon which reliance Willi placed when the parties entered IIlio this transact1011.

B. The undersigned shell require that the language of this Certlflcation be Included In all subcontraota and !hat all subcontractom Bhall certify end dfseloso:: accordingly. To the bm ot my knowledge, I declare under penalty ot peljury that !he foregoing Is true and was executed at : City of Los Angeles I County of Los Angeles I California Oily/County/State December 8 2014 5777 W. Century Blvd, Suite 895, ·Los Angeles, CA 90045 Address Sherif Hanna Signal re of Authorlted Officer or Representative Print Name Managing, Partner 310-571-3399 TIUII TelephOne Number

ltav, l0/01 SERVICE

CITY OF LOS ANGELES RESPONSIBILITY QUESTIONNAIRE RESPONSES TO THE QUESTIONS CONTAINED IN THIS QUESTIONNAIRE MUST BE SUBMITTED ON THIS FORM. In responding to the Questionnaire, neither the City form, nor any of the questions contained therein, may be retyped, recreated, modified, altered, or changed in any way, in whole or In part. Bidders or Proposers that submit responses on a form that has been retyped, recreated, modified, altered, or changed in any way shall be deemed non-responsive.

The signatory of this Questionnaire guarantees the truth and accuracy of all stat.;;ments and answers to the questions herein. Failure to complete and return this questionnaire, any false statements, or failure to answer (a) question(s) when required, may render the bid/proposal non-responsive. All responses must be typewritten or printed in ink. Where an explanation is required or where additional space is needed to explain an answer, use the Responsibility Questionnaire Attachments. Submit the completed form and all attachments to the awarding authority. Retain a copy of this completed form for future reference. Contractors must submit updated information to the awarding authority if changes have occurred that would render any of the responses inaccurate in any way. Updates must be submitted to the awarding authority within 30 days of the change(s).

A. CONTACT INFORMATION

CITY DEPARTMENT INFORMATION Office of the Chief LegislatlW!I Analyst and Office of the City Administrative Officer John Wickham City Department/Division Awarding Contract City Contact Person Phone Request for Proposal: Economic and Financial Advisors to Evaluate the Citywide Minimum Wage Proposal City Bid or Contract Number (if applicable) and Project Title

BIDDER/CONTRACTOR INFORMATION Beacon Economics, LLC Bidder/Proposer Business Name 5777 West Century soulevJ?.rd, Suite 895 CA 90040

424-646-4660 Sharif Hanna, Managing Partne( 310-571·3399 Contact Person, Title Phone Fa.X

TYPE OF SUBMISSION:

The Questionnaire being submitted is: -'f1f An initial submission of a completed Questionnaire. D ·An update of a prior Questionnaire dated /__ _ D No change. I certify under penalty of perjury under the I ws of the State of CalifOrnia that there has been no change to any of the responses since the Ia Respo 1bility Questionnaire dated I ! ___ was submitted by the firm. Attach a y, estionnaire and sign below.

She~it Henna,, Managing Partner Decemba~ s, 2014 Print Name, Title Date

TOTAL Ill UMBER OF PAGES SUBMITTED, INCLUDING ALL ATTACHMENTS: _ _:_7__ _

Responsibility Questionnaire (Rev, 05/10/02) SERVICE B. BUSINESS ORGANIZATION/STRUCTURE Indicate the organizational structure of your firm. "Firm" includes a sole proprietorship, corporation, joint venture, consortium, association, or any combination thereof.

D Corporation; Date incorporated: __/ __;__ State of incorporation: _____ List the corporation's current officers.

President

Vice PtaJ:>ident;

Se:crete~ry;

Treasurer: D ChecK the box only if your firm is a publicly traded corporation. List those who own 5% or mors of the corporation's stocks. Use Attachment A if more space is needed. Publicly traded corporations need not list the owners of 5% or more of the corporation's stocks.

~Limited Liability Company: Date of formation; _D_e_c...~ ___1 _2_oo_6_ State offormation: California List members who own 5% or more of the company. Use Attachment A if more space is needed. Christopher Thornberg

D Partnership: Date formed: State of formation:-,--,---- List all partners in your firm. Use Attachment A if more space is needed.

D Sole Proprietorship: Date started: __/ __/ __ List any firm(s) that you have been associated with as an owner, partner, or officer for the last five years. Use Attachment A if more space is needed. Do not include ownership of stock in a publicly traded company in your response to this question.

D Joint Venture: Date formed: __/ __ ; __ List: (1) each firm that is a member of the joint venture and {2) the percentage of ownership the firm will have in the joint venture. Use Attachment A if more space is needed. Each member of the Joint Venture must complete a sepanate Questionnaire for the Joint Venture's submission to be considered as responsive to the invitation.

Respon::>lbillty Questionnaire (Rev, 05/1 0/02) 2 SERVICE

C. OWNERSHIP AND NAME CHANGES

1. Is your firm a subsidiary, parent, holding company, or affiliate of another firm? DYes llfNo

If Yes, explain on Attachment A the relationship between your firm and the associated firms. Include information about an affiliated firm only if one firm owns 50% or more of another firm, or if an owner, partner or officer of your firm holds a similar position in another firm.

2. Has any of the firm's owners, partners, or officers operated a similar business in the past five years? DYes t'if'No

If Yes, list on Attachment A the names and addresses of all such businesses, and the person who operated the business. Include information about a similar business only if an owner, partner or officer of your firm holds a similar position in another firm.

3. Has the firm changed names in the past five years? DYes -fi'No

If Yes, list on Attachment A all prior names, addresses, and the dates they were used. Explain the reason for each name change in the last five years.

4. Are any of your firm's licenses held in the name of a corporation or partnership? DYes ~Sf'No .

If Yes, list on Attachment A the name of the corporation or partnership that actually holds the license.

Bidders/Contractors must continue on to Section D and answer all remaining questions contained in this Questionnaire.

The responses to the remaining questions in this Questionnaire will not be posted on the internet but will be made available to the public for review upon request. Contact the appropriate Designated Administrative Agency.

Responsibility QI.Jestionnaire (Rev, 05/10/02:) 3 SERVICE

D. FINANCIAL RESOURCES AND RESPONSIBILITY

5. Is your firm now, or has it ever been at any time in the last five years, the debtor in a bankruptcy case? 0 Yes lf'No

If Yes, explain on Attachment B the circumstances surrounding each instance.

6. Is your company in the process of, or in negotiations toward, being sold? DYes ~No

If Yes, explain the circumstances on Attachment B.

E. PERFORMANCE HISTORY

7. How many years has your firm been in business? _a___ Years.

8. Has your firm ever held any contracts with the City of Los Angeles or any of its departments? f!!ves 0 No

If, Yes, Jist on an Attachment B all contracts your firm has had with the City of Los Angeles for the last 10 years. For each contract listed in response to this question, include: (a) entity name; (b) purpose of contract; (c) total cost; (d) starting date: and (e) ending date.

9. List on Attachment Ball contracts your firm has had with any private or governmental entity (other than the City of Los Angeles) over the last five years that are similar to the work to be performed on the contract for which you are bidding or proposing. For each contract listed in response to this question, include: (a) entity name; (b) purpose of contract; (c) total cost; (d) starting date; and (e) ending date. J'Check the box if you have not had any similar contracts in the la.st five years

10. In the past five years, has a governmental or private entity or individual terminated your firm's contract prior to completion of the contract? 0 Yes l'!ifNo

If Yes, explain on Attachment 6 the circumstances surrounding each instance.

11. In the past five years, has your firm used any subcontractor to perform work on a government contract when you knew that the subcontractor had been debarred by a governmental entity? DYes "~!No

If Yes, explain on Attachment B the circumstances surrounding each instance.

12. In the past five years, has your firm been debarred or determined to be a non-responsible bidder or contractor? DYes t:

If Yes, explain on Attachment B the circumstances surrounding each instance.

Responsibility Questionnaire (Rev. 05/1 0102) 4 SERVICE F. DISPUTES

13. In the past five years, has your firm been the defendant in court on a matter related to any of the following issues? For parts (a) and (b) below, check Yes even if the matter proceeded to arbitration without court litigation. For part (c), check. Yes only if the matter proceeded to court litigation_ If you answer Yes to any of the questions below, explain the circumstances surrounding each instance on Attachment B. You must include the following in your re:>ponse: the name of the plaintiffs in each court case, the specific causes of action in each case: the date each case was filed: and the disposition/current status of each case_

(a) Payment to subcontractors? 0 Yes -.¢"No

(b) Work performance on a contract? DYes ~No

(c) Employment-related litigation brought by an employee? 0 Yes r'f"No

14. Do$:;; your firm have any outstanding judgements pending against It? DYes ~o

If Yes, explain on Attachment B the circumstances surrounding each instance.

15. In the past fiV$ years, has yollr firm been assessed liquidated damages on a contract? DYGs f!'No

If Yes, explain on Attachment B the circumstances surrounding each instance and identify all such projects, the amount assessed and paid, and the name and address of the project owner. G. COMPLIANCE

16. In the past five years, has your firm or any of its owners, partners or officers, ever been investigated, cited, assessed any penalties, or baen found to have violated any laws, rules, or regulations enforced or administered, by any of the governmental entities listed on Attachment C (Page 9)? For this question, the term "owner" does not include owners of stock in your firm if your firm is a publicly traded corporation. DYes llfNo

If Yes, explain on Attachment 8 the circumstanc.;,s surrounding each instance, including the entity that was involved, the dates of such instances, and the outcome_

17. If a license is required to perform any 5ervices provided by your firm, in the past five years, has your firm, or any person employed by your firm, been investigated, cited, assassed any penalties, subject to any disciplinary action by a licensing agency, or found to have violated any licensing Jaws? 0 Yes f'INo

If Yes, explain on Attachment B the circumstances surrounding each instance in the last five years_

Responsibility Questionnaire (Rev. 05/10/02) 5 SERVICE 18. In the past five years, has your firm, any of its owners, partners, or officers, ever been penalized or given a letter of warning by the City of Los Angeles for failing to obtain authorization from the City for the substitution of a Minority-owned (MBE), Women-owned (WBE), or Other (OBE) business enterprise? D Yes i:"/No

If Yes, explain on Attachment B the circumstances surrounding each instance in the last five years.

H. BUSINESS INTEGRITY

19. For questions (a), (b), and (c) below, check Yes if the situation applies to your firm For these questions, the term "firm" includes any owners, partners, or officers in the firm. The term "owner'' does not include owners of stock in your firm if the firm is a publicly traded corporation. If you check Yes to any of the questions below, explain on Attachment B the circumstances surrounding each instance.

(a) Is a governmental entity or public utility currently investigating your firm for making (a) false claim(s) or material misrepresentation(s)? DYes J'No

(b) In the past five years, has a governmental entity or public utility alleged or determined that your firm made (a) false claim(s) or material misrepresentation(s)? DYes M'No

(c) In the past five years, has your firm been convicted or found liable in a civil suit for, making (a) false claim(s) or material misrepresentation(s) to any governmental entity or public utility? DYes iY'No

20. In the past five years, has your firm or any of its owners or officers been convicted of a crime involving the bidding of a government contract, the awarding of a government contract, the performance of a government contract, or the crime of fraud, theft, embezzlement, perjury, bribery? For this question, the term "owner' does not include those who own stock in a publicly traded corporation. DYes MNo

If Yes, explain on Attachment B the circumstances surrounding each instance.

CERTIFICATION UNDER PENALTY OF PERJURY

I certify under penalty of perjury under the laws of the State of California that I have read and understand the questions contained in this questionnaire and the responses contained on all Attachments. I further certify that I have provided full and complete answers to each q stion, and that all Information provided in response to this Questionnaire is true and accurate t o y knowledge and belief.

Sherif Hanna, ManQging Partn&~r December 8, 2014 Print Name, Title Signature Date

Responsibility Questionnaire (Rev. 05/1 0/02) SERVICE ATTACHMENT B FOR SECTIONS D THROUGH H

Where additional information or an explanation is required, use the space below to provide the information or explanation. Information submitted on this sheet must be typewritten or printed in ink. Include the number of the question for which you are submitting additional information. Information $1.lbmitted on this Attachment in response to Questions in Sections D through H will not be posted on the internet but will be made available to the public for review upon request. Make copies of this Attachment if addttional pages are needed.

4 Page__

Page 4, Section E., Question 8. (a) Entity name: City of Los Ar'i9eles (acting by and through the Office of the City Admlnisttative Officer) (b) Purpos.e of the contract: to provide a report to estrmate the marKet Impact of en inr.::rease ln tha document transfer tax in the City of Los Angeles. (c) Total cost: $20,000.00 (d) Starting date: Septemb~l' 20,2012 (e) Ending date~ November 1, 2012

Responsibility Questionnaire (Rev. 05/1 0/02) 8 EBO COMPLIANCE City of Los Angeles Department ofpublic Works Bureau of Contract Administration Office of Contract Compliance 1149 S. Broadway, Suite 300, Los Angelos, CA 90015 Phone; (213) 847-2625 E~rnajl.: bc;:u:.voer(l.!IQ.dty.ot'f!

EQUAL BENEFlTS ORDINANCE COMPLIANCE AFFIDAVIT

Prime contractors must certify compliance with Los Angeles Administrative Code (LAAC) SectiQD I 0.8.2.1 et seq. prior to the oxecution of a City agreement subject to the Equal Benefits Ordinance (EBO).

!:iECTION 1. CONTACT INFORMATION

Company Name: __B_e_ac_o_n_E_c_on_o_m_ic_s_, _LL_C~------~BA VN Company Ill # -=="'-----

Company Address: 5777 West Century Boulevard, Suite 895

Lao Angeles . CA 90045 City: ------State: ____ Zip: ------31 0-57"1-3399 [email protected] ContJ;~Ct Person: She(if Hanna Phone: Il·

Approximate Number of Employees in the City of Los Angeles: __13______

SECTION 2. EBO BEO!JIREMENT~

The EBO r<:quiros City Contracto!S who provide benefits to employees with spouses to provide the same benefits to employees with domestic pa:rt:ners. Domestic Part.o.er means any tvvo adults~ of the e:s.me or different se~, who have registered as domesdc partners with a governmental entity pursuant to state or local law authorizing this regil!ltration, or witl:t. an internal registry maintained by tbe employer of at least one of the domestic partners.

Unless otherwise exempt, the contractor is subject to and shall corn.ply with the EBO as follows:

A. The contractor's operations located within the City limits, regardless of whether there are employees at those locations performing work on the City Contract; and B. The contractor's operations located outside of the City limits if the property is owned by the City or the City has a right to occupy the property, and if the contractor's presence at or on the property is co:o:nectl;!d to a Contract with the City; and C. The Contractor's employees located elsewhere in the United States, but outside of the City Limi.ts, if those employees are performing work Oil t})e City Contract.

A Contractor must post a copy of the following statement in conspicuous places at its place of business avoilablo to employees and applic

"Dming the performance of a Con.tract with the City of Los Angeles, the Contractor will provide equal benefits to its employees with $pouscs and its employees with domestic partners."

f

SECTION 3. COMPLIANCE OPTIONS

1 have read and understand the provisions of the Equal Benefits Ordinance and have determi.ned that this company will comply as indicated below: D ...... J have no employees. D ...... I provide no benefits. D ...... I provide benefits to employees only. Employees are prohibited from enrolling their spouse or dome:sti~ patiner . ..J'...... I provide equal benefits as roquired by the City of Los Angeles BBO. D ...... 1 provide employees with a "Cash Equivalent." Note: The "Cash Equivalent" is the amount of money equivalent to what your company pays for spous•l benefits that are unavailable for domestic partners, or vice versa. 0 ...... All or some employees are covered by a collective bargaining agreement (CBA) or union trust fund. Consequently, I will provide Equal Benefits to all non-union represented employees, subject to the J'!BO, and will propose to the affectod unions that they incorporate tho requirements of the EBO in!() their CBA upon amendment, extension, or other modification of the CBA. 0 ...... Health benefits currently provided do not comply with the EBO. However, I will make the 1\

SECTION 4. DECLARATION UNDER PENALTY OF PERJURY

I U!ldersta:nd that I am required to permit the City of Los Angeles access to and upon request, must provide certified copies of all company records pertaining to benefits, p

_B_•_•:..co:..n..,E::;c:.:o_no_m_i'"cs~._L_LC'----- \vill comply with the Equal Benefits Ordinance r0quirerrusnts Company Naro~ as indicat~d ~bove prior to executing a contract V.'ith the Ci.ty ofLo:s Angeles an.d will comply for the entire duration of the contta.ct(s).

l declare under penalty of perjury undor the laws of the State of California that the foregoing is true and correct, and that I am uthorized to bind this entity contractually, __D_e_ce_m_b_•_' __, in the year 20_l.i_, at Los Angeles '~ (City) (Stat€) 57i7 West Century BoUIGvBrd, Suite 895

Ma(li"8 Addr~:s Los AngaJas, CA 90045 N;;ame of Signatocy (please print) City, State, Zip Code Managing Partne( 20-S0i'S7915 RfNf[]N

Form QCC/EBO-Affidavit (Rev 6121/12) !'Jot applicable; we are not applying for non-coverage or exemption

LWO '=XEMPTION APPLICATION CITY OF LOS ANGELES Oepartnlent of Public Works Bureau of Contract Admlnletratlon Office of Oontraot Compliance 1149 S. Broadway: Street, 3rd Floor los Angeles, CA ao015 Phone: (213) B47-1922- Fax': (213) 64H.777 LIVING WAGE ORDINANCE APPLICATION FOR NON-COVERAGE OR EXEMPTION .os Angeles Admlnlstmtlve Code 10.37, the Uvlng Wage Ordlna:noe (LWO), presumes all City contractors (Including 1ervloe oontractora, auboorrtrllctors, flnanclatasslstance recipleot\J, lessees, licensees, sublessees and subfloense!$) are 1ubject to the LWO unless an exemption applies. Contraotors may subm~ thla form w~h their bid or proposal to apply for lXI'Imption. City departments may also use this fonn. Exemptions based on the catllgorles llstoo below must be 1pproved by the Office of Contract Compliance (OCC) to be valid. SECtiON 1: CONTBACTOB INFOBMATION ' .

:OmpanYName: ------~---- Contact Pe!'llon: ------­ lompany Address: :Jty: ------State: ----Zip: ----- Phone: ----~--- li:CTION 2: DEPARlME:Nt AND CONTRACT INFORMATION lapattrnent Awarding Contract: ------Contr>~otii'(Hany): ~-~------~--- lame. of Department Oontaot: ------Department Phone: ~--~------:.:>trtract Amount: -"'------Start Data: ------End Datto: 'urpoas/Sarvloe Provided: ------""7""------

. !f;,gTIPN 3: EXE.MPPPN BASIS (Check one of the options below a~d submit supporting documentation as requested.) ] collective Bargaining Agreemants (LAAC 10.37.12): Contractors who are party to a collective bargaining agreement (CBA) whloh contains spec::ifio language Indicating that the CBA will superoede the LWO may receive an exemption as to the employees coveted under tfle CBA. Required documentation: A r;opy of the CBA With the superseding language clearly marked, or a letter from the union stating thlilt the union has agrl'led to allow the CBA to supersede the LWO must be submitted with this application. ] Occupational License (LAAC 10.37.1 (f)): Only the Individual employees whO are mqulred to possess an occupational license to providE! services to or for the City ar& exempt. · Regulr!ld pooumentatlon: A listing of the employees requi!"Eid to possass occupa;tlonallicen~>ee to perform services to or for the City and copies of their oooupationalllcenses must be submitted with this application. J other. Cite the LWO code section:---~---~------~--~------,..­ Reqyired documenlallon: Subm~ a memorandum explaining the basis for the raquest for applloatlon for exemption. '

.eQIION 4: CONTRACTOR CEftTIEICATION UNQEB PENALTY OF P§BJURY y signing, the contractor cartlfles under penalty of perjury under the laws of tha State of California that the information ubmltt&d In !!Upport of lhls application Is true and correct to the-best of the contractor's knoWledge.

lame of Signatory Signature 11tle Oate ny approval or this applloaUon exempts only the listed contractor from the LWP during the perlormance of this ontraot. A subcontractor performing work on this contram Is not ~>xempt unless the Office of Contract 'Ompllance ha$ approved a separate exempUon for the Individual subcontractor. FOR OCC USE ONLY

~ proved· I Not Approved- Rooson: By OCC Anal1flll: Dat~t

orm OCC/LW-10 (Rev. 6106) Not applicable; we are not applying for non-coverage or exemption SCWRO/CFAR

CITY OF LOS ANGELES Dlllpa.rtmllnt of Public Works, Bureau of Coh\ram Administration Office of ConJract COmpliance 1149 s. Broadway Street, 3' Floor, Los Angeles, CA 90015 Phone: (213) S47-1S22-I"ax: (213) S47-2m . SERVICE CONTRACTOR WORKER RETENTION ORDINANCE (SCWRO) CITY I'JNANGIA!. A5SISTAN!fE.BECIPIENT ("QFAR") APP!.!!;?ATION FOR NO~;CQVERAGE QB jiXEMPTlON A Cfty financial aasi5tance recipient (CFAR), as defined in Los Angeles Administrative Code Section 10.36.1 (c), may apply lor non-coverage or exemption If they meet the criteria described below. Under LAAC 10.36.1 (c), a QFAR means any parson that receives from the City In any one year discreta financial assistance for economic development or job growth totqftng at least $100,000. Service contracts for economic development or job growth are also deemed to be financial assistance once the $100,000 thrashold Is reached. '.

Company Name: Phone:-----~---- Contact Person: ____~----,~---~------Company Address:------,------=---.;__---~----,- City: State:---- Department Awarding Financial Assistance;-:------­ Number of Contracts With the City of los Angeles: ":":-:---.-:--.-::::~::-:----:-=-:7:=::--:=-::"::'=-::-­ (Attach a Jist Identifying the awarding department, contract amount, contract term, and contract pu·rposet.) . Pl~ese check the box lndleatlng the exemption for which you arc applying and follow the lnstructlgns. C Exemptlon 1: A oorporatlon organized under Section 501 (o)(3) of the United States Internal Revenue Service Code, that regularly employs homeless persons, persons who are chronically unemployed, or persons receiving public assistance may apply for this exemption. To qualify: Read and sign the statement thatfollows. Submit this form and a copy of your IRS 501 (c)(S) letter to the awarding department, who will than review it and .submit ~ to the Bureau of Contract Administration, Office of Contract Compliance for final approval. I oertlfy under penalty ofperjury that this corporation t'li/gu/ar/y employs homeless persons, persons who are chronically unemployed, or persons receiving public assistance.

SignatUre:.______Date:~------

[J Exe(llptlon 2: A corporation organized under Section 501 (c)(S) of the United States Internal Revenue Service Coda, with an annual operating budget of less than five million dollars ($5,000,000) may apply far this exemption. To qualify: Submit this form, a copy of your IRS 501 (c)(3) letter and a copy of your operating budget for the ourrent fiscal year to the awarding department, who will then review It and submit It to the Buroau of Contraet Administration for final approval.

AWARDING DEPARTMENT'S RECOMMENDATION: Date: ______Approved: -----~ Not Approved: _____ Department Contact:------Phone:------FOR BCA USE ON I. Y Approved: Not Approvecl (See Attached): Analyst: Date:

Form OCCISCWR0·1. AppllooUon for No...Coverogo or I'Mmpllon (Rev, 06/06) LOS ANGELES RESIDENCE INFORMATION

The City Council In consideration of the Importance of pi"B8EErvlng and enhancing the economic base and weiJ..belnu of lha City encourages businesses to lOcate or remain wll.ltln the City of Los Angel&&, This Is Important because of tlur jobs businesses general8 and for tile business taxes they .remit. The City council on January 7, 1992, adolltfll:l a motion lhet .raqull\'ls proposer& to state fhelr headquarter atldrass as well as the percentage of their workforce rosldlng In the Oily of Los Angelas,

Organization: Beacon Economics. LLC

5777 West Century Boulevard

Suite 895

Los Angeles. CA eOot~;5

16 II. Total Number of Employees In Organization:

Ill. Number and Percentage of Employees In Organization wlto ara Los AngeiN Oily ~sldenl&: . .

4.

25 % NON-COLUI810N AFFIDAVIT

Sherif Hanna '·------~dllptlQandaay that I am of Manafi!ing Partner , Beacon Economics1 LLC ('Pr•ldent• 'Vk:tl-Prealdent.' etc.) (Insert Name and Addreu of 01'1f811lzallgn who aobmlla lhls propoll8l to the Clly of Loa AnUelas, City Attorney's Olllce, 11nd hereby declln that this pmpoil8l IGIJllhUine, end not 11ham or c:alluslve, nor nlllde In lh&lntnst or In behalf of any 1*1011 not hllrilln named and lha PfOPO!IOI had nat dlll!Ctiy Induced or solldted III'IY other p~Upaaer to put In a sham prtlpll8BI, or 11ny other pen~on, tlrm, or CQrpotallan to rd'aln from aubm!Wnga propaeal, and lhal tht1l proposer has not In any manner ll

::-----occ- The Company found records that the Company or its Predecessor Companies bought, sold, or derived Profits from SlavehOlder Insurance Policies during the Slavery Era. The names of any Enslaved Persons or Slaveholders under the Policies are listed on the attachment to this Affidavit and incorporated herein. 6. I declare under penalty of perjury under the laws of the State of California that the representations made herein are true and correct to the best of my owledge.

DEFINITIONS Affidavit means the form developed by the DAA and milly be updated Predecossor Comp.any means an entity whose ownership, title and from timr:~ to time. The Affidavit need not b¢ notarized but mw$t be .signed interest, including all rights. benefits, dUties and !iJ,:~bilities were acquired under pen.alty of perjury. in an uninterrupted chain of succession by the Company. company rneans any person, firm. corporation, part:nersh'ip or Profits means any economic advant.age or financial benefit derived from combination of these. the use of Ensl:av~d Persons.

Contra~:;t mea.ni ;;;my agreemerit, franc;hise, lease Ot concession InclUding SJa.very means the prs.otice of owning En$lavecl Persons. an agreement for ll!lny occasional prof€ssional or technical personal Sl;;~very Era mJ::Jans th~t period of time in the United St~~es of America services. tha performance of any work or service, the provhkm of any prior to 1865. materials or supplies or rende(ir'tg of any service to the City of LOS Angeles or the public, which is let, awarded or entered into with or on Slaveholder means holders of Enslaved Persons, owners of [email protected] bshalf of the City of Los Angeles or any Awarding AuthOrity of the City. enterprises using Enslaved Persons. owner:s of vessels e,'3rrying Enslaved Pen:Jons or other mea~ns of transporting Ensl.:avQd Persons, Enslaved Person means any per$on who was wholly .subject to the will merchants or financiers dealing in the purchase, sale or financing of the: of another and who$e person and services were whOlly under tho control busiMs.S of En.!;llaved Pei'$Ons. of another :and who was in a state of $nfurccd compl.ll.sory ii.'lcrvica to another during the Slavery Era. Slaveholder Insurance Policie$ means policielil issued to or for the benefit of Sla~vehOid~rs to insure them against the death of, or injury to, Investment means to meke use of a,n Enslaved Person for future En;;.laved Persons. benefits or advantages.

Participation mli.l.;&n$ having been l!ll Sl~t~~veholder during: the Slavery Era.

OCC/SD0·1 Affidavit (Rev. 08/12) FSHO COMPLIANCE

City ofLos Angeles Department of Public Works aur~::au of Contract Administration Office of Contract Compliance 1149 S. Broadway, Suite 300, Los Angeles, CA 90015 Phone: (213) 847-2625 E-mail: bca.ccqc:CL:i.llacily.org:

FIRST SOURCE HIRING ORDINANCE COMPLIANCE AFFIDAVIT

Contractors (inch1ding loan or grant recipients) participating on a City contract that is subject to the first Source Hiring Ordinance (FSHO) are required to certifY their compliance prior to contract execution.

As part of thejr obligations und~ the FSHO, Contractor$ must provide the Awarding Deparb:ncnt a list of anticipated employment opportunities that they and their subcontractors expect to fill in order to perfonn the oervices under the contract. The FSH0-1 form (available at i)ttp://bca.lacity.o(~) should be utilized to inform the Awarding Authority of any such opportunities. If no oppo

During the term of the contract, the contractor and their subcontractors shall:

I. At least seven business days prior to making an announcement of a specific employmem opportunity, provide notification of that employment opportunity by submitting the FSH0-3 form to the Cotnt'r)unit~l Development .Depa.rtmeut; 2. Interview qualified individuals referred by the City's referral resources; and 3. Prior to filling any employmem opportunity, infonn the Office of Contract Compliance of the names of the re:fuJ:Tat resourc.~r:~ used, the namc:.s of the individual-s rc::fern::d, and the names of the referred individuals who wero interviewed. If the referred individuals were not hired, the contractor should also provide the reaso:ns they were not :hjred,

DECLARATION UNDER PENALTY OF PERJURY

I an! awm of my obligations under Los Angeles Administrative Code (LAAC) Section I 0.44 ot seq., First Source Hiring Ordinance, and understand that failure to comply may result in contract termination. The City may •iso pursue any and all oth« remedies at law or in equity for any breach. The City may use the failure to comply with the First Source Hiring Ordinance as evidence against the contractor in actions taken pursuant to the provisions of the LAAC Section 10.39 et seq. and 10.40 et seg., Contractor Responsibility Ordinance.

I declare under penalty of pe!juty under the laws of the State of California that the foregoing is true and omreot, and that I am authorized to bind this entity contractually.

day of __D_e_ce_m_b_e_r_--' in the year 20_1_4_, at ___L_os-;;A::cnc'g;..e_t•_• ____,, _cA__ . (City) (State) 5777 West Cent~,.~ry Boutevatd, Suite 895 Maili-n,s Address SMI'if Hanna Loe Angeles, CA 90045 City, State, Zip Codu Man~glng Partner 20-8075796 Titlt::! 25560 [email protected] BAVN r.DNo. E-Mail rr---~- City itw;;c~~ilisi~··· ...... -...... -~ .. -·-~'""··~-.... -=-·-~·""""'"'w ... _.... - .. - ...... , ... _ .... -=-~·-....--·--.------l ~~::'-"!.,"';'.!.. Bidder Certification j lliJ Loo Angel .., CA 90012 c ~ Moil Stop 129 (Z13)978-1960 EC orm 50 . 1 L...__ ·---·--·~-··--·--····~····-······---····-··-····.,··------····------

This form must be submitted to lhG awarding authority with your bid or proposal fur ths contract noted bslow. Please write legibly.

El Original filing D AmE.!nded filing (origin~l signed on · last amen9ment signed on )

6id/Contract/BAVN Number: Awarding Authority (Department): 25560 City of Los Al'lg81e:s, Office of the Chief LegisiJ,i.tive Anaryst and Office of the City Administrattve Officer

IName of !liddor: II Phone: .Beacon Economics, LLC '31 0-571-3399 "]

Address: 5777 West Century Boulevard, Suite 895, Los Angeles, CA 90045

IEmail: [email protected] I CERTIFICATION I certify the following on my own behalf or on behalf of the entity named above, which I am authorized to represent A. l am a person or entity that is applying for a contract with the City of Los Angeles. B. The contract for which I am applying is an agreement for one of the following: 1. The performance of work or service to the City or the public; 2. The provision of goods, equipment, materials, or supplies; 3. Receipt of a grant of City financial assistance for economic development or job growth, as further described in Los Angeles Administrative Code§ 10.40, 1(h); or 4. A public lease or lioen•e of City property where both of the following apply, as further described in Los Angeles Administrative Code § 10.37.1 (l): a. I provide services on the City property through employees, sublessaes, sublicensees, contractors, or subcontractors, and those services: i. Are provided on premises that are visited frequently by substantial numbers of the public; or ii. Could be provided by City employees If the awarding authority had th" resources; or iii. Further the proprietary interests of the City, as determined in writing by the awarding authority. b. l am not eligible for exemption from the City's living wage ordinance, as eligibility ls described in Los Angeles Administrative CodG § 10.37.1 (l)(b ). c. The value and duration of the contract for which I am applying is one of the following: 1. For goods or services contracts-a value of more than $25,000 and a term of at least three months;

2. For financial <;~$s1stance contracts-a value of at least $100 1000 and a tarm of any duration: or 3. For construction contracts, public leases. or licenses-any value and duration. D. l acknowlsdge and agrss to comply with the disclosure requirements and prohibitions established in the Los ::.:~." ""'"" cooo;o, ""'"'~" "' '~"0" ' """""~u,, "'"''" M""'""' '"-" § l certify under penalty of pe~ury under the Iawe of the City o] A'j~l the state of California that the information in this form ls true and complete. ~ ..

Date: December 8, 2014 Signature: ,. Name: Shel'f(Hanna

Title: Managing Partner

R~is~:~d February 2014 L~ AnQele4il Municipal Cod~§ 4$,09(H) 1 of 1 Los Angeles Administr~tiVQ Code fi 10.40.1

(h) "'City Financial Assistance Recipient" means any person who receives from the City discrete financial assistance in th9 amount of OnG HundtsO Thousand Dollars ($100,000.00) or more lor economic development or job growth expressly articulated and identified by the City, as contrasted with generalized financial assistance such as through tax legislation.

Categories of such assistance shall includa, but are not limited to. bond financing, planning assi$tance, tax increment financing exclusively by the City. and tax credits. and shall not includ(d. assistance provided by the Community Development Bank. City staff assistance shall not be regarded as financial assistance tor purposes of this article. A loan shall not be regarded as financia.l assistance. The for'9iveness of a loan shall be regarded as financial assistance. A loan shall be regarded as financial assistance to the extent of any differential between the amount of the loan and the present value of the P

Los Angele$ Administrative Code§ 10.37.1

(I) "Public lease or license",

(a) Except as provided in (i)(b), "Pubi"IC lease or license" means a lease or license of City property on whlch :services are ranaered by employees of the public lessee or licensee or sublessee or sublicensee. or of a. COI'Jtractor or subcontractor, but only where any of tha following appliea:: (1) The services are rendered on premises at least a portion of which is visited by substantial numbers of the public on a frequent basis (including, but not limited to, airport passengGr tl!;!rmlnals, parking lots, golf oourses, tacre€ltional facilitie6)i or (2) Any of the services could feasibly be perronned by City employees if the awarding authority had the requistte financial and staffing resources; or (3) The DAA has determimild in writing that oovel'age would further the proprietal'y interests of the City. (b) A public lessaa or licensee will be exempt from the requirements of this article subject to the following limitations: (1) The Jessee or licensee has anl'lual grass revenues of Jess than the annua.l gross revenue thrnshol~, three hundred fifty thousand dollars ($350,000). from business conducted on City property; (2) The lessee or licensee employs no more than seven (7) people total in the oompany on ana off City property; (3) To qualify for this exemption, the IE!ssee or licem..:ge must provide proof of its gross revenues and number of people it employs in the company's entire workforce to the awarding authority as required by regulation; (4) Whether annual gross revenues are Il than one thcu!lland two~hundred fourteen (1 ,214) hours per month for at least three-fourths (314) of the time period that the tevenue limitation is measuredi (7) Public leases and licenses sholl be deemed to include public subloaoeo and subJicgn:ses; (8) If a public lease or license has a teiTll of more than two (2) years, the exemption granted pursuant to this section .shall expire aftGr two (2) yga.rs bu~ $hall be renewe~ble in two-ye€lr increments upon maating the requirements therefor at the time of the renewal application or such pertod established by regulation. Offica of F'in.anoo Antoinette Christovale 2D1 ~L Marn St, Rn·, 101 CITY OF LOS ANGELES Director of Finari~;;e Los Ange:es CA 900 I 2"480 1 CALJFOf

Eric Garcetti Mayor

6F.ACON ECONOMICS LLC Account Number: 0002438348-000'1·2

5777\N CENTURY BLVD #895 Posr orne~ sox #2431 LOS ANGELES. CA 90045-5678 MILL VALLEY, CA 94942·2431

0411512014

Cas~ number UNP-5502115 is closed with a $0 balance. The ov~rpaym~Jil r:>f$!,779.42 w~s applied to your 201400!\ Renewal.

I i )lOLl have any questions regarding this statenwnt please call 1213) 4 73-590 I. For general business tllX mformation. visit our web site at http;//tlnance.lacity.org.

Sincerely. Office of Finane"

AN EQUAL. £:MPI..-OVMc;.':m" OF~QRT\JNITY- AI"FIRMATI\IE;; ACTION EMPL.QYii:R Fllo# ______State of California Secretary of State

LIMITED LIABiliTY COMPANY ARTICLES OF ORGANIZATION

A $70.00 filing fee must accompany this tonn. ~--···-·· .. ····---~ -~···"·--·-·····---,~··"·'··-- IMPORTANT- Road lnstrur;tions before completing this tonn. This SP

ENTITY NAM_E .,,CE".d tt.e nomo with the """!'do 'Umllro~iationo 'lLC" or 'L.L..:.C.:..:.'l__ 1. NAME OF LIMITEO UASILITY COMPANY Beacon Economics LLC

PURPOSE (The loilowil1g otatomentio tOqulmd by otalu1e Md may nol bo altato

INITIAL AGENT FOR SERVICE OF PRoceSS (If the "'J<)nt ia an lndMd0$1, tile agent mull! .-..!do In Collfornio and bi>th lil>IM 3 and 4 mu$1 bo oomplotOd. If lho agont ts • OOIPCf81ioo, lho agent must hove on filo w1t11 tho Callfomla SoCI'olary of $1;1lo o oerlJf!cate purouant to Coljloralions Code -~on 15M on(! 1t<'~f!_3_~ bo et>mpl_!?d (~~ liam ~~'!~~------~_ ...... _...... _ ... ____ ...... ------·------·--·- 3. NAME OF INITIAl. AGENT FOR SERVICE OF PRDCESS Jon Haveman 4:IF AN INol\ltrn.iAi:. AOD«EssatiNIT.Ai:AGeNTif'c>Rs:Erulicii'ii'"PROOiS·;;;~i~R:W~:~-;;,;:y--·--·-·---;sriif;ArTie~---z_iitPPCicootoel5 ___1 204 Ross Street, San Rafael CA 94901

MAH.AGEMENT {Cilod< only on•) ------~--~------···--·--·-----...... ______~_ .. ,_.. ______5, Tlie LIMITED LIA!lllrtY COMPANY WIU. BE MANAGED BY: DONE MANAGER D MO~e THAN ONE MANAGER [ill Ali LIMITED LIA!lllllY COMPANY MEM6SR(S)

EXECUTION 1. IDE--~... ·~~"'""'=:~;-o/~ --.. ----·---~

Jon Haveman TV1'e OR PRINT NAME OF ORGANIZER

FIRM Beacon Economics LLC

ADOR~SS 204 Ross Street "IMiiED liA!'IIliTY COMPANY OPERATING AGREEMENT CITVJSTA"""''P LSan Rafael, CA 94901 &e.o.CON ecONOMICS LLC J ... EXHIBIT A·