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 '. 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