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Denver Construction Careers Pilot_2021 Mid Year Report

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Denver Construction Careers Pilot 2021 Mid Year Report

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Table of Contents Why we are Here 3 About Denver Construction Careers Program 4 Projects in this Report 5 Program Requirements 6 Building our Construction Workforce 7 Workforce Demographics 8 DCCP Worker Profile 9 Findings To Date 10 Opportunities Next Steps 11 Appendix 12 A 6 Month Project Details 13 18 B WORKNOW Report 19

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Why are we here The Mayor and City Council are committed to ensuring that Denver residents particularly those in economicallydisadvantaged areas and backgrounds benefit from unprecedented investments made in Denver s infrastructure Cent ral to President Bi den s recovery pl a n is a n i nfr a st r uctur e package the size of which w e ve not seen s i nce the Gr e a t Depression To seize thi s uni q ue moment i n hist or y a nd to ensure t hat we really do buil d back bet t er and susta i n t hi s recovery we need t o levera g e t he federa l gover nment s investment We need t o seiz e thi s op p ort unit y t o ki ckst a r t ou r recovery and sust ain it Simp l y put i nfra st r uc t u r e cr ea t es jobs support s communit i es and gr ows t he middl e cl a ss Denver Mayor Michae l B Hanco ck This 2021 mid year report provides a summary of Denver Construction Careers Pilot DCCP and its work data and lessons learned through the first half of year three of the pilot While the pilot was originally planned as a three year term it was extended by one more year Page 3

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About DCCP WHAT WE DO The purpose of the pilot is to test and identify best practices for connecting Denver residents to jobs created by large scale publicly funded construction projects The pilot s focus on 10 million projects allows the City to evaluate and develop best practices for future workforce policies HOW WE DO IT DCCP has focused on more than 15 major projects over the last three years These have included the most iconic venues that make Denver a world class city such as Denver International Airport Denver Museum of Nature Science and Denver Art Museum The projects total more than 900 million in value creating job opportunities for Denver residents and other key populations increasing access to opportunity for those that need it most The City and County of Denver learned a great deal about economic recovery after the Great Recession One of the most important lessons was that not everyone experienced Denver s prosperity equitably The Denver Construction Careers Pilot is one of many solutions we ve developed to ensure Denver residents have access to the prosperity tied to infrastructure development in Denver Eric Hiraga Executive Director Denver Economic Development Opportunity Page 4

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Projects Included in This Report Active Projects January June 2021 Colorado Convention Center DEN Pe a Boulevard Expansion Phase 1 Denver Central Branch Library DEN Great Hall Denver Museum of Nature and Science closed Q1 Denver Center of Performing Arts closed Q1 Project contracts awarded before Pilot requirements were adopted and no contractual obligation for 15 apprenticeship utilization requirement to meet pilot goals This report also includes cumulative program data on the following closed projects for the period including January 2019 to June 2021 Denver Art Museum Denver Botanic Gardens Denver Zoo 47th York Bike Pedestrian Bridge Denver Health Hospitality Authority New DCCP Partnerships Climate Action Sustainability and Resiliency through Building Owners Managers Association International Facility Management Association IFMA Denver Urban Gardens Metro State University Increase pipeline of diverse students Denver Parks Recreation and Civilian Conservation Corps Page 5

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Program Requirements Denver Economic Development Opportunity DEDO works to ensure an inclusive and innovative economy for all Denver residents businesses and neighborhoods DCCP implements the mission by focusing on these key areas for capital improvement projects 1 2 WORKFORCE COORDINATOR Contractor is required to identify a workforce point of contact to ensure the implementation of the Workforce Plan 3 TRAINING STRATEGY 15 of construction hours performed by registered apprentices Of those 25 of hours by residents in target areas or from target populations 25 by first year apprentices OUTREACH ENGAGEMENT Approach and plan for defined target areas and populations Veterans Justice involved formerly incarcerated TANF recipients History of homelessness History with foster care WORKNOW members and graduates of preapprenticeship programs 4 REPORTING TRACKING Contractor is required to document progress on employing target populations through the following systems LCPtracker Prevailing Wage System Connecting Colorado State Workforce System In 2020 alone there were nearly 20 highly publicized incidents of flagrant racism on construction jobsites throughout North America The National Law Review Equity is weaved through everything that is done within the Denver Construction Careers Pilot The Denver Construction Careers Pilot has worked to increase access to quality jobs and exercises a zero tolerance policy for racial or equity injustice Page 6

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Building Denver s Construction Workforce 6 MONTH DATA JANUARY 2021 JUNE 2021 30 MONTH DATA JANUARY 2019 JUNE 2021 30 03 hr 1 696 Average Wage of Workers 9 343 30 76 hr 4 352 28 50 hr Average Wage of Workers 25 22 hr 406 New Hires Average Wage Average Wage New Hires 25 00 hr 117 Apprentices Average Wage 749 24 00 hr Average Wage Apprentices TARGET ZIP CODES WHERE WORKERS LIVE JANUARY 2021 JUNE 2021 82 Workers 61 82 Workers Workers 48 Workers 61 25 48 Neighborhoods Include 25 East Colfax Elyria Swansea Workers Workers Workers Globeville Montbello Workers Northeast Park Hill Sun Valley Valverde Villa Park Workers Workers Workers Workers Workers WorkersWest Workers Workers Colfax Westwood 19 18 19 16 18 16 16 16 Denver Neighborhood Equity Stabilization NEST Target Zip Codes are neighborhoods facing significant economic social and cultural change and are selected based on a variety of economic indicators Page 7

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Workforce Demographics 6 Months 7 increase in female workers since pilot began 66 of workers 8 of workers are Minorities or not specified INC REA SE are Female National Average is 9 Female TALENT SHORTAGE Estimated construction workers needed to complete City planned projects by 2026 IN W OR KFO RC EO VER 89 TIM E 26k 80 50 2019 vs 2021 January June Total Workers New Workers Apprentices Page 8

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DCCP Worker Profile Growth Through Mentorship Zurishalen C is a WORKNOW member and East Denver resident who first connected to coalition partners through a referral from the registered apprenticeship program he was applying to Getting into the trades is not easy at first there were so many moving parts he shares The whole team at WORKNOW helped me manage some of the initial hurdles to getting started Zurishalen is now a successful first year electrical apprentice employed by Sturgeon Electric and working on the DEN Expansion project It s only getting better every day and I love what I do I want to help others connect to these important resources to build a better future Zurishalen C and his journey worker mentor Page 9

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Findings to Date With the Denver Construction Careers Pilot approaching the completion of its third year and the end of the pilot period the team has experienced a series of successes green lights detours yellow lights and roadblocks red lights GREEN LIGHTS Program benefits successes Secured 1 69M to support the WORKNOW collaborative Identified multiple methods to enhance the talent pipeline Engaged with industry to create a new registered apprenticeship program Streamlined collective outreach and awareness opportunities YELLOW LIGHTS Program challenges with workable solutions Hurdles to target hire workforce shortages local housing costs transportation parking and childcare expenses Tracking and validating first year apprentices requires unforeseen resources Construction projects vary and workforce program requirements should not be a one size fits all For example horizontal construction has less apprenticeable occupations than vertical construction RED LIGHTS More challenging issues Tracking target populations and first year apprentices is difficult and data is inconsistent DCCP continues to work on a sustainable solution Wage competition from other industries e commerce gig economy presents challenges for the construction industry A resurgence of COVID 19 could have significant impact on construction industry Page 10

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Opportunities and Next Steps Over the next six months efforts will continue to focus on sustainable workforce solutions for the construction industry Work with students pre apprentice and registered apprentice programs and target populations to identify employment trends on projects Because demographic data is voluntary it is difficult to disentangle program effectiveness for a single population from characteristics of the overall workforce until a reporting solution is identified Enhance pre apprenticeship training along with industry union and nonunion partners through a Center of Excellence Training Center model Continuous improvement of DCCP services to support job seekers agencies and industry workforce efforts including enriching the WORKNOW program Conclusion Over the last two and a half years of the pilot the DCCP team had the unique opportunity to work on some of the City s iconic venues and assets The information in this report depicts the impact of increased engagement with private contractors city services and non profit supportive services Through thoughtful engagement the DCCP team has tackled some of the toughest issues facing construction bolstering the skilled trades by leveraging the City s capital improvement projects as career opportunities for workers Page 11

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APPENDIX Page 12

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APPENDIX A COLORADO CONVENTION CENTER EXPANSION PRIME HENSEL PHELPS Photo Credit Steve Crecelius OVERVIEW This project will create 80 000 square feet of flexible meeting space in the new level on top of the existing Colorado Convention Center The meeting space will be capable of being configured as a single large room for ballroom style events or divided into smaller meeting rooms to host corporate meetings Highlights LEED Gold Certification Enhanced technology and connectivity Workers on Project 135 Denver resident 37 27 Live in target zip codes 20 15 Average wage 29 53 New Hires 48 Denver resident 10 21 Live in target zip codes 5 10 Average wage 26 36 Total Apprentices 8 Apprentice Utilization 9 4 Flexible and unique meeting spaces Page 13

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DENVER CENTER FOR THE PERFORMING ARTS PRIME TURNER Photo Credit Rebecca Todd OVERVIEW When the Bonfils Complex was built Time magazine called it the crown jewel of the Rockies After almost three decades it was time for our theatre and public spaces to be renovated Denver resident 34 23 Live in target zip codes 18 12 Average wage 34 32 Project Highlights New Hires 10 Updating critical fire life safety systems and rebuilding the Stage theatre Increased physical accessibility New seating and finishes state of theart technology and improved egress Advanced energy efficiency by replacing lighting and mechanical systems Workers on Project 151 Denver resident 1 10 Live in target zip codes 0 Average wage 38 31 Total Apprentices 15 Apprentice Utilization 8 4 This project closed in Q1 2021 Page 14

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DENVER INTERNATIONAL AIRPORT DEN GREAT HALL PRIME HENSEL PHELPS Photo Credit DEN OVERVIEW DEN has embarked on a renovation of the Great Hall which is the area under the tents of the airport s Jeppesen Terminal The terminal encompasses 1 5 million square feet Project Highlights Workers on Project 897 Denver resident 255 28 Live in target zip codes 151 17 Average wage 29 07 New Hires 202 Denver resident 57 28 Live in target zip codes 31 15 Average wage 24 62 When complete the project will deliver a safer more efficient Great Hall that serves as a warm welcome to Denver keeps up with passenger demand and leaves a lasting impression for all passengers and visitors Total Apprentices 63 Apprentice Utilization 9 1 Apprentice goal on this project is 5 Page 15

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DENVER MUSEUM OF NATURE SCIENCE PRIME HASELDEN Photo Credit Denver Museum of Nature Science OVERVIEW The Museum is an assortment of buildings that have been constructed by connecting one to another since the first structure opened in 1903 Approximately every decade since 1908 another wing has been constructed In 2014 the Museum moved all collections to the new preservation areas In anticipation of these vacated spaces the Museum initiated a Facility Master Plan for future public and non public uses including improvements required to transition the space use included Major HVAC equipment upgrades and Life safety improvements to replace smoke control systems damper control systems and air control systems in the Central Atrium Workers on Project 21 Denver resident 3 14 Live in target zip codes 2 10 Average wage 33 40 New Hires 4 Denver resident 0 Live in target zip codes 0 Average wage 30 45 Total Apprentices 1 Apprentice Utilization 8 7 This project closed in Q1 2021 Page 16

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DENVER CENTRAL LIBRARY RENOVATION PRIME GH PHIPPS Photo Credit DPL OVERVIEW The Library s critical building systems technology infrastructure and architectural features are over 22 years old and have exceeded their life expectancy Project Highlights The Golden Triangle Partnership has plans Workers on Project 232 Denver resident 59 25 Live in target zip codes 30 13 Average wage 33 19 New Hires 47 Denver resident 12 26 Live in target zip codes 6 13 Average wage 27 74 to improve public programming and other amenities that can be addressed through this renovation The Denver Art Museum and the Central Library envision an educational and cultural Total Apprentices 19 Apprentice Utilization 6 8 campus that is a premier family destination Page 17

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PE A BOULEVARD EXPANSION PHASE 1 PRIME IHC SCOTT Photo Credit DEN OVERVIEW The project intent was to improve safety in both directions of Pe a Boulevard near the airport terminal by relocating the Return to Terminal route Project Highlights Added two new inbound lanes Replaced aging pavement The original project scope was scaled back due to COVID 19 impacts Workers on Project 370 Denver resident 72 19 Live in target zip codes 39 11 Average wage 28 65 New Hires 75 Dener resident 15 20 Live in target zip codes 9 12 Average wage 24 46 Total Apprentices 9 Apprentice Utilization 1 8 Page 18

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APPENDIX B Denver s unique WORKNOW collaboration is a shared commitment across public private and nonprofit sector stakeholders to ensure families living in communities directly affected by construction projects benefit from them The City and County of Denver has supported WORKNOW as a funding partner since 2017 WORKNOW partners known as the Colorado Resource CORE Partners include organizations that bridge construction industry job training with community resource partners to overcome barriers to construction workforce readiness and career success Learn more about WORKNOW JANUARY 2021 JUNE 2021 JANUARY 2019 JUNE 2021 65 WORKNOW Members on City Projects 199 7 New Hires on Projects 102 26 92 Average Wage 26 21 WORKNOW Members Working on Multiple City Projects 1 39 of Apprentices 12 New Hires on from Target Zip Codes 3 026 spent on supportive services 12 88 33 41 614 Top Types of Supportive Services Clothing Boots Tools Apprenticeship Tuition Fees Food Page 19

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