1979 Price Index of Operating Costs for Rent Stabilized Apartment Houses in New York City . ^_ —. . . .. , U S Department of Labor ■ ' Bureau of Labor Statistics Middle Atlantic Regional Office $ 1515 Broadway. New York. NY 10036 Regional Report 63, June 1979 This report is the sixty third in a series of Regional Reports presenting and analyzing data on various aspects of labor and the economy in the Middle Atlantic Region. Earlier reports in this series are the following: No. 1 Profile 90: An analysis of Pockets of High Unemployment in New York City. August 1963* Mo. 2 Wages 1963: Report on a Survey of Wages, Salaries, and Fringe Benefits for the Standard Metropolitan Statistical Area of New York, New York. October 1963* No. 3 Jobs in the New York-Northeastern New Jersey Area. December 1964* No. 4 Employment Statistics for the New York- Northeastern New Jersey Metropolitan Area, 1949-64. July 1965* No. 5 Seasonally Adjusted Employment Statistics for the New York-Northeastern New Jersey Metropolitan Area, 1949-64. August 1965* No. 6 1966 Major Collective Bargaining in the Middle Atlantic States. February 1966* No. 7 Post World War II Price Trends in Rent and Housing in the New York -Metropol i tan Area. June 1967* No. 8 Employment Statistics, 1958-66: A Compilation of Employment Statistics for the Middle Atlantic Region. June 1968* No. 9 Labor Force Experience of the Puerto Rican Worker. June 1968* No. 10 Changing Patterns of Employment, Income and Living Standards in New York City. June 1968* No. 11 Professional, Administrative, and Tech- nical Pay in New York, 1968. March 1969* No. 12 Charting the New York City Economy: A Graphic Summary of Recent Economic Trends. May 1969* Mo. 13 Urban Studies Series: Poverty Area Profiles. The Working Age Population- Initial Findings. October 1969* No. 14 Urban Studies Series: Poverty Area Profiles. Characteristics of the Unem- ployed. May 1970* No. 15 Professional, Administrative, and Tech- nical Pay in New York, 1969. June 1970* No. 16 Wages in the Virgin Islands, 1970. November 1970* N6. 17 A Price Index of Operating Costs for Uncontrolled Apartment Houses in New York City. February 1971* No. 18 Professional, Administrative, and Tech- nical Pay in New York, 1970. February 1971* No. 19 Poverty Area Profiles: The New York Puerto Rican: Patterns of Work Ex- perience. May 1971* No. 20 Changing Patterns of Prices, Pay, Workers and Work on the New York Scene. May 1971* No. 21 Poverty Area Profiles: The Job Search of Ghetto Workers. June 1971* No. 22 Poverty Area Profiles: Working Age Nonparticipants: Persons Not in the Labor Force and Their Employment Pro- blems. June 1971* No. 23 Report on the 1971 Price I*dex of Oper- ating Costs for Uncontrolled Apartment Houses in New York City. July 1971* No. 24 Wages and Benefits of Municipal Govern- ment Workers in the City of Newark. November 1971* No. 25 Work Stoppage Trends in the New York- Northeastern New Jersey Area. November 1971 No. 26 Wages and Benefits of Local Government Workers in the New York Area. December 1971 No. 27 Professional, Administrative, and Tech- nical Pay in New York, 1971. February 1972 No. 28 1972 Price Index of Operating Costs for Rent Stabilized Apartment Houses in New York City. July 1972 Continued on inside back cover. 1979 Price Index of Operating Costs for Rent Stabilized Apartment Houses in New York City U.S. Department of Labor Ray Marshall, Secretary Bureau of Labor Statistics Janet L. Norwood, Commissioner Middle Atlantic Regional Office Herbert Bienstock, Regional Commissioner of Labor Statistics Avery Architectural and Fine Arts Library Gift of Seymour B. Durst Old York Library Material in this publication is in the public domain and may be repoduced, fully or partially, without permission of the Federal Government. Please credit the Middle Atlantic Regional Office of the Rureau of Labor Statistics and cite 1979 Price Index of Operat - Costs for Rent Stabilized Apartment Houses in New York City, i nq Reqional Report 63, Preface This report presents findings from the tenth annual survey undertaken by the Bureau of Labor Statistics for the New York City Department of Housing Preservation and Development to provide a Price Index of Operating Costs for Rent Stabilized Apartment Buildings. In addition to analyzing price changes between April 1978 and April 1979, comparable data for the twelve year period from the April 1967 index base are presented and reviewed. As part of a continuinq review of the survey desiqn to ensure the develooment of the most current and best possible index, components are periodically evaluated and where appropriate necessary modifications made. In 1979, the insurance company and newspaper advertising outlet samples were auampnted. In addition, a statistical technique for improving the samplinq error and measurement of fuel was introduced. The first survey results were presented in Reqional Report No. 17, which provided price indexes for the 1967-70 period together with a descrip- tion of the characteristics and expenditure patterns of stabilized buildings, based on a 1969 survey of operatinq costs. Subseguent findings were presented in a series of annual reports. (See Regional Report Nos. 23, 28, 33, 38, 45, 50, 54 and 58.) Each of the reports includes descriptions of the concepts and techniques used to develop the index. The study was conducted under the overall direction of Samuel M. Ehrenhalt in the Bureau's Middle Atlantic Regional Office. Program planning and evaluation, index construction, analysis of findings and the preparation of this report were completed by Virginia Charonis with the assistance of Celia Kalet, under the direction of Jesse Benjamin in the Division of Program and Analysis. Data collection and tabulation in the Division of Operations were supervised by Shirley Horowitz under the direction of Anthony J. Ferrara. Technical support was also provided by Thomas R. Tibbetts and other members of the staff of the Bureau's Office of Prices and Living Conditions in Washing- ton, D.C. The charts were prepared by the Division of Graphic Services of the Department's Office of Information. The survey could not have been accomplished without the coopera- tion of the many establishments that provided the statistical information needed to compile the index. The Bureau wishes to express its sincere appre- ciation for the cooperation received. Herbert Bienstock Regional Commissioner of Labor-Statistics iii Digitized by the Internet Archive in 2014 https://archive.org/details/1979priceindexof00unit Contents Page Summary 1 Characteristics of the index 13 Price data collection 15 Relative importance of components 18 Study design imorovements 19 Component indexes 22 Over-the-year price changes 23 Taxes, fees and permits 23 Labor costs 28 Fuel and utilities 32 Contractor services 40 Administrative costs 43 Insurance 46 Parts and supplies 49 Replacement costs 53 Tables 1. Price index of operating costs for rent stabilized apartment houses, New York City, April 1967-April 1979 2 2. Price index of operating costs for rent stabilized apartment houses, New York City, April 1979 7 3. Relative importance of components of the price index of oper- ating costs for rent stabilized apartment houses, New York City, April 1967 and April 1979 19 4. Price index of taxes, fees and permits 25 5. Price index of labor costs 31 6. Price index of fuel and utilities 36 7. Price index of contractor services 42 8. Price index of administrative costs 44 9. Price index of insurance costs 47 10. Price index of parts and supplies 51 11. Price index of replacement costs 53 Charts 1. Over-the-year percent changes by component April 1976-1979 3 2. Price index of operating costs for rent stabilized apartment houses in New York City, April 1967-1979 5 3. Price increases and relative importance by component, impact on overall index increase, April 1967-1979 9 4. Price index of taxes, fees and permits, April 1967-1979 27 5. Price index of labor costs, April 1967-1979 30 6. Price index of fuel and utilities, April 1967-1979 37 7. Price index of contractor services, April 1967-1979 41 8. Price index of administrative costs, April 1967-1979 45 9. Price index of insurance costs, April 1967-1979 48 10. Price index of parts and supplies, April 1967-1979 50 11. Price index of replacement costs, April 1967-1979 52 Appendixes A. Reliability of percent changes 56 B. Selected pricing specifications 57 v 1979 Price Index of Operating Costs for Rent Stabilized Apartment Houses in New York City This report presents findings from the latest in a series of annual surveys undertaken by the Bureau of Labor Statistics for the Department of Housing Preservation and Development of New York City to provide an index measuring the change in the price of goods and services purchased to operate apartment buildings that have been continuously subject to rent stabilization since 1969. Data refer to April of each year. The index reference or base period is April 1967. All current operating costs are within the scope of the study, while capital expenditures or financing costs, such as mortgage in- terest, are excluded. The major operating cost groups covered by the survey include: taxes, fees and permits; labor; fuel and utilities; contractor services; administra- tive costs; insurance; parts and supplies; and replacement of appliances and lobby furnishings. The April 1979 price index was computed from over 5,800 price quotations for a sample of about 65 specifically defined commodities and services. Weights for the index were originally developed from 1969 expendi- ture data collected from a representative sample of operators of rent stabil- ized apartment houses. Summary The Price Index of Operating Costs rose 8.2 percent between April 1978 and April 1979. Three-fifths of the net 1978-79 increase resulted from a 43 percent jump in fuel oil prices. Also contributing to the overall 1 index rise was a 10.5 percent increase in the labor component. The labor rise was primarily due to wage increases for workers of Local 32-B, Building Service Employees Union, AFL-CIO, the largest group of workers covered by the index. Partially offsetting the impact of the increases for fuel and labor was a 2.3 percent decline in taxes, fees, and permits, the most important of the cost components studied. (See table 1.) The 1978-79 overall index increase of 8.2 percent compared with a fractional rise of 0.5 percent in the preceding year and a 7.9 percent in- crease for the year ending April 1977. Largely reflecting sharply higher fuel oil prices, the fuel and utilities component rose 24.5 percent between April 1978 and April 1979. The increase over the last year for this component was Table 1. Price index of operating costs for rent stabilized apartment houses. New York City, April 1979 Group 1979 Index (April 1967=100) Percent change from April 1978 All items 238.6 8.2 Taxes, fees and permits.... Labor costs Fuel and utilities Contractor services Administrative costs Insurance costs Parts and supplies Replacement costs 171.1 271.4 473.1 226.1 180.6 316.0 236.4 194.1 -2.3 10.5 24.5 8.2 5.2 4.4 9.0 7.3 2 CHART 1 Over-the-year percent changes by component April 1976-1979 Percent Percent 24 1976-77 1977-78 1978-79 20 16 12 -4 Fuel and utilities 13% -3.9% 24.5% Labor Taxes, fees and permits 1976-77 1978-79 1977-78 8.8% 6.4% 10.5% 5.7% -2.4% -2.3% All other items* 9.7% 5.7% 6.8% *AII other items includes contractor services, administrative, insurance, parts and supplies, and replacement costs. in sharp contrast with a 3.9 percent decline in the preceding year, which largely reflected the impact of then-declining fuel oil prices. The labor index, up 10.5 percent between April 1978 and April 1979, registered the sharpest increase in three years. The 1978-79 rise compared with a 6.4 percent increase in 1977-78 and an 8.8 percent rise a year earlier. (See chart 1 . ) The 1978-79 labor index increase was largely due to higher wages for members of Local 32-B, who are employed in Manhattan, Queens, Brooklyn and Staten Island. These workers received two wage increases between April 1978 and April 1979; one resulted from a deferred increase received in October 1978 and a second from a new contract settlement, retroactive to April 21, 1979. Also contributing to the 1978-79 labor index rise were September 1978 and March 1979 deferred union wage increases for Bronx workers represented by Local 32-E, as well as increases in nonunion wages. The tax component decreased 2.3 percent between April 1978 and April 1979, marking the second consecutive year of decline for this major component. The 1978-79 decline dampened the impact of the fuel and labor increases on the overall index rise. Excluding taxes, all other index groups combined rose by 14.2 percent in the year ending April 1979. The 1978-79 decrease for taxes was about in line with the preceding year's 2.4 percent. The declines of the last two years contrasted with an increase of 5.7 percent between April 1976 and April 1977. The 1978-79 decrease resulted entirely from lower assessments, as the tax rate remained unchanqed. The composite of the other components of the index, excluding fuel and utilities, labor and taxes, moved up 6.8 percent over the year as compared to CHART 2 Price index of operating costs for rent stabilized apartment houses in New York City April 1967-1979 Index, April 1967 = 100 250 1 a 5.7 percent rise in the preceding year and 9<-7 percent between April 1976 and April 1977. The upward movement in the rate of price increase over the last year reflected some acceleration for the contractor services and parts and supplies components. Since the 1967 base period, the all items index has substantially more than doubled, rising 139 percent in twelve years. The largest component increase was for fuel and utilities, up 373 percent, almost three times the overall rate of increase. Among other index components, increases ranged from a hiqh of 216 percent for insurance costs to a low of 71 percent for taxes, fees and permits. A longer term review of index trends indicates that in six of the nine years since 1970, increases have ranged from roughly 6 to 8 percent, averaging 7.1 percent. Three years, 1971, 1974 and 1978, stand out in sharp contrast. In 1971 and 1974, the index rose sharply by 13.4 percent and 19.2 percent, respectively. (See table 2 and chart 2.) In each of these years, higher fuel oil prices accounted for the bulk of the increases. In 1978, the index edged up by 0.5 percent as declines in fuel oil and taxes offset increases in other sectors. Taxes, fees and permits Reflecting declines in assessments, the tax index was down 2.3 percent between April 1978 and April 1979, marking the second decrease on record for this component. The 1978-79 assessment drop followed a 1.9 percent decline in the preceding year, bringing total decreases in assessments to 4.2 percent for the two-year period. Between April 1978 and April 1979, the tax rate remained unchanged after dropping 0.5 percent a year earl ier. 6 Table 2. Price index of operating costs for rent stabilized apartment houses. New York City, April 1967-1979 Percent change i%7 ino.o 1968 103.5 3.5 1%9 107.6 4.0 1970 116.6 8.4 1971 132.2 13.4 1972 139.7 5.7 1973 150.8 7.9 1974 179.7 19.2 1975 191.3 6.5 1976 203.5 6.4 1977 219.5 7.9 1978 220.5 0.5 1979 238.6 8.2 Year (as of Apri 1 ) Index On a lonq term basis, the tax component increase has been moderate as compared with the rest of the index. Since 1967, taxes rose 71 percent, considerably below the 197 percent increase for all the other components of the index combined. Despite exhibiting the slowest average rate of increase among the eight major index groups, taxes have accounted for roughly a quarter of the all-items index rise, reflecting this component's considerable impor- tance in the index. Labor A 10.5 percent 1978-79 rise for the labor index was impacted substantially by compensation changes for workers of Local 32-B, the most important labor group for the housing sector covered by the index. Average pay levels of Local 32-B workers covered by the study rose by roughly 12 percent 7 between April 1978 and April 1979, as a result of a deferred increase received in October 1978 and one effective April 21, 1979 under a newly negotiated agreement . Also contributing to the 1978-79 increase were union wage increases granted in September 1978 and March 1979 to Bronx workers represented by Local 32-E as well as higher nonunion wages. The nonpayroll part of the labor component rose by about 6 percent, with higher employer contributions to social security, union health and welfare benefit funds, and unemployment insurance. Fuel and utilities The 24.5 percent rise in the fuel and utili- ties component between April 1978 and April 1979 was the steepest since the 1974 energy crisis. Sharply higher fuel oil prices, up 43 percent, contrasted with a fuel oil price decline of 11 percent in the preceding year. For the utilities sector, the 1978-79 increase was 5 percent as compared with a 4 percent rise a year earlier. Because of its sharper than average price increase, the fuel and utilities component, which accounted for 13.3 percent of the operating costs included in the index in 1967, now accounts for 26.3 percent. Since 1967, fuel and utilities price increases have been responsible for roughly 36 percent of the index rise, the single largest impact of any index group. (See chart 3. ) Contractor services An 8.2 percent rise in the contractor services index between April 1978 and April 1979 primarily reflected higher prices for plumbinq and repainting. Also contributing to the over the year increase were higher prices for elevator maintenance, roofing and boiler repairs. Since CHART 3 Price increases and relative importance by component, impact on overall index increase April 1967-1979 Percent distribution of relative importance, 1967 Percent distribution of impact on overall price index increase since 1967 11.1% 46.1% Percent increase, April 1967-1979 Fuel and utilities 373.1% All other items* 1 62.0% Contractor services 126.1% 10.1% Administra- tive costs 80.6% Taxes, fees and permits 71.1% 4.8% * All other items includes: Insurance, parts and supplies, replacement costs 1967, the contractor service component has risen by 126.1 percent and ac- counted for about 10 percent of the overall index increase. Administrative costs Between April 1978 and April 1979, the admini- strative cost index rose 5.2 percent, primarily reflecting increases in management fees. Higher accounting fees and office supply prices also contri- buted to the increase. Since 1967, the administrative cost index has risen 81 percent as compared to the overall index rise of 139 percent. The admini- strative cost component, which accounted for 8.3 percent of the operating costs in 1967, has accounted for about 5 percent of the overall index rise since then. Insurance Increases in fire insurance premiums were primarily respon- sible for the insurance index rise of 4.4 percent between April 1978 and April 1979. The 1978-79 rise followed a 6.2 in the preceding year and a 3.9 rise for the year ending April 1977. Increases over the past three years have been moderate as compared to a 32.7 percent rise for the April 1975-April 1976 period. Over the past 12 years, a 216 percent rise for the insurance compo- nent was substantially above the 139 percent increase for the entire index. Increases in insurance premiums have accounted for about 4 percent of the overall index increase since 1967. Parts and supplies Higher prices for buckets, brooms and light bulbs, helped to raise the parts and supplies index by 9.0 percent between April 1978 and April 1979. The 1978-79 increase compared with a 7.3 percent rise in the preceding year and was the sharpest since 1975 when this component rose 17.2 percent. Since 1967, the parts and supplies index has risen 136 percent, at roughly the same rate as the overall index. Replacement costs Prices of appliances and lobby furnishings purchased for replacement were up 7.3 percent between April 1978 and April 1979, follow- ing a 5.3 percent rise in the preceding year. Higher refrigerator and gas range prices were largely responsible for the 1978-79 increase. The replace- ment cost index has risen 94 percent since 1967, at a slower pace than the overall index. Price trends since 1967 The sharpest advances since the 1967 index base period were for the fuel and utilities and insurance indexes, up 373 percent and ?16 percent, respectively. The smallest increases over the same period were for taxes, fees and permits up 71 percent, and for administra- tive costs, up 81 percent. In addition to the rate of price change of an expenditure group, a second variable influences the overall index change, the relative importance or weight of a component. For example, taxes, accounting for close to half of operating expenses in 1967, rose 71 percent over the 12 year period, as compared with an increase of 139 percent for the overall index. Although the tax index increase was only slightly more than half the overall rise, because of the tax component's large weight, it was responsible for roughly a quarter of the all-items rise since 1967. In contrast, with a post-1967 increase triple that of taxes, insurance accounted for only about 4 percent of the all items index increase since 1967. Insurance represented only a minor part of total operating costs in the 1967 index base period of ?.A percent. The fuel and utilities component with the largest increase since 1967, 373 percent, has accounted for 36 percent of the overall index price rise 11 since then. In 1967, this component accounted for 13.3 percent of the operating costs covered by the survey. As a result of its sharp increase since then, in 1979 it accounted for 26.3 percent of the index and was the second most important component next to taxes, fees and permits which accounted for 33.0 percent. 12 Characteristics of the index The price index of operating costs measures the change in price of a constant mix of goods and services reflecting 1969 expenditure patterns of stabilized apartment building operators in New York City. A stabilized apartment house for purposes of this study is defined as a dwelling where the majority of the rental units have been subject to rent stabilization continu- ously since 1969. The index covers price data for eight major expenditure classes: taxes, fees, and permits; labor; fuel and utilities; contractor services; administrative costs; insurance; parts and supplies; and replacement costs for lobby furnishings and appliances. Information on 1969 expenditures, obtained from building operators, was used to develop the index weights for the various goods and services purchased to operate these units. The items priced were selected to be representative of commodities and services used in such opera- tions . The index measures price change of a fixed market basket from a desig- nated reference period, in this case April 1967. In interpreting the index number, an index of 150 would mean that there was a 50 percent increase in prices since the base period; similarly, an index of 90 would mean a 10 percent decrease. Movements of the index from one date to another are typi- cally expressed as percent changes rather than changes in index points; chanqes in index points are affected by the base period, while percent changes are not. The index is a "price" index rather than a "cost" index. That is, index movements are determined by changes in prices of goods and services 13 purchased by building operators rather than by changes in both prices and quantities purchased. The price index, of course, does reflect costs in that it measures price change of items which are costs to the purchaser. To the degree that the base-period market basket becomes less represen- tative because building operators purchase more or fewer units of the same item, the index would to some extent lose its appropriateness as a measure of chanqing costs. During 1974, a study was undertaken to evaluate the adequacy of the current index weights. This test indicated that the expenditure weiqhts used for the index had not chanqed sufficiently since 1969 to signifi- cantly distort year-to-year changes. Another approach to this study could have been to obtain data over time on costs from real estate operators' records. This approach was not taken since the index would be impacted not only by changes in price but by the variability in quality and periodicity of services and repairs which are difficult to measure. It is not feasible or necessary to obtain price data for all the goods and services purchased in order to calculate a valid index of price change. A sample of representative items was selected for inclusion in the "market basket" priced. The content of this market basket, in terms of items, quanti- ties, and quality, is kept unchanged in the year-to-year index calculations so that any movement of the index from one year to the next is due solely to chanqe in prices. Since this index represents the average movement in the price of goods and services used in operating only those New York City dwelling units in buildings under rent stabilization since 1969, it is not directly applicable 14 to any other group of apartment house operators. Similarly, individual rent stabilized operators may find their costs changing differently because of variations in the relative importance of costs or other changes in composition of cost factors. Price data collection Prices used in calculating the index are obtained from a representative sample of about 900 respondents. Personal visits are made to some 500 busi- ness establishments where rent stabilized apartment house operators purchase goods and services. Included among these outlets are union locals; fuel suppliers; hardware and appliance distributors; office supply and stationery stores; service contractors; utility companies; management firms; attorneys; accountants; newspapers; advertising agencies; insurance brokers; appliance, boiler and other types of repair and service shops. Rentals obtained for a sample of about 400 rent stabilized apartments are also used as inputs for measuring changes in management fees. Real estate tax data are collected for a sample of 900 establishments operating some 2,400 rent stabilized buildings. Building characteristics and insured value data for a sample of 100 realty establishments, including both single buildings and apartment house complexes, coupled with rate information for a sample of 18 insurance companies, are used to develop estimates of insurance charges. Specification pricing To insure that the index reflects changes in prices and not changes due to quantity or quality differences, detailed specifications describing the items in the market basket are used. Bureau 15 representatives, who receive classroom and on-the-job training, carefully determine whether the goods and services for which they record prices conform to specifications. "Specification pricing" is a key tool in pricing procedures. It is designed to ensure the comparability of the price index over time by providing a detailed description of the price-determining characteristics of an item. Tracinq price change for a carefully defined product helps to assure that index movements reflect only actual price change and not the effect of com- parisons of high (or low) qualities of a product or service in one year with lower for hiqher) qualities in another year. For a few items, the brand name or the model number, as for ranges and refrigerators, may become part of the defined quality. Care is exercised to assure that a comparable product is priced over time, whether or not brand names or models change. Terms of sale and quantities purchased are also part of the specification. Specifications are regularly evaluated and modified to maintain the currency of the index. Information on market conditions and changes in product lines is used to ensure that the specifications are up to date. Selected specifications developed for this index are presented in Appendix B of this report. Frequency of data collection Since the index measures price change from April to April of each year, it is not necessary to obtain prices for all sample items at more frequent intervals. However, for about half of the 65 specifications in the index, pricinq is undertaken semi-annually to provide a vehicle for experimental pricinq of new or modified specifications, and to minimize reportinq errors. 16 More frequent pricing also provides a better gauge of price movement for evaluation of prices collected for inclusion in the index. Finally, more frequent data collection provides a basis for early identification of changes in products or services which may require modification, allowing more time for needed changes to be tested and incorporated into the current year index. In addition to the April data collection used for index construc- tion, prices are collected in October of each year for the following compo- nents and items: fuel oil; all contractor services except elevator mainten- ance; leqal and accountinq fees; office supplies; janitorial parts and sup- plies; appliance replacements and lobby furnishings. For fuel, which in recent years has been subject to substantial price fluctuation, data are collected in December and February, in addition to April and October so as to maintain a more detailed time series. This additional pricing helps to insure maximum comparability of price data collected from individual respondents. Prices for utilities; elevator maintenance; labor; insurance; manage- ment fees; newspaper advertising rates; and real estate taxes are not sche- duled for semi-annual collection because price information for these items is obtained from public or payroll records and contractual agreements. Since these prices are largely set once a year or at other intervals, more than one update in each index reference period would not provide any improvement in the qual ity of the data. Pricinq for all items in the index is based upon actual goods and services purchased by apartment house operators covered by this study. The sample of vendors used for pricing was drawn from listings of companies servicing these operators. 17 Relative importance of components The relative importance of a component of the index represents its basic value weight from the expenditure survey adjusted for price change. These expenditure weights, expressed as percentages of overall costs, are presented in table 3. The relative importance of a component represents the value of the items priced within it plus the value of unpriced commodities and services assumed to have price movements similar to those of the sample items. Initial value weiqhts were based on actual annual expenditures for the various qroups collected in a survey of apartment house operators' expenditures in 1969. More detail on the relative importance of individual items within the various expenditure classes was published in Regional Report No. 17. Changes in relative importance, 1967-79 Value weights and correspond- ing relative importance ratios are adjusted by different rates of price change among the various items, i.e., relative importance increases over time for an item or group having a greater than average price increase, and decreases for those having a less than average rate. For example, the taxes, fees and permits component rose at a significantly slower pace than all-items, 71 percent over the twelve year period compared to 139 percent; as a result, the relative importance of this group fell from 46.1 percent in 1967 to 33.0 percent in 1979. Althouqh the relative importance of index value weights does not precisely indicate current expenditure patterns, it is useful in analyzing the movement of the index. Table 3 shows the relative importance of major groups in the index for 1967 and 1979. These figures show how operators would have 18 Table 3. Relative importance of components of the price index of operating costs for rent stabilized apartment houses. New York City, April 1967 and April 1979 Group 1979 Index (Apri 1 1967=100) Relative importance 1967 1979 238.6 100.0 100.0 Taxes, fees and permits.... 171.1 46.1 33.0 Labor costs 271.4 15.6 17.7 Fuel and utilities 473.1 13. 3 26. 3 Contractor services 226.1 11.1 10.6 Administrative costs 180.6 8.3 6.3 Insurance costs 316.0 2.4 3.2 Parts and supplies 236.4 2.0 2.0 Replacement costs 194.1 1.2 0.9 allocated their expenditures if they had continued to purchase the same kinds and amounts of commodities and services as they had in 1969, the reference period for the expenditure survey which was the basis for the initial expendi- ture value weights. However, the relative importance of items in 1967 and 1979 does not represent a distribution of actual expenditures for these years, since there may have been some variation in the patterns of purchases of goods and services since the 1969 expenditure survey. Study design improvements As Dart of a program of evaluation and guality improvement built into the desiqn of this as well as other Bureau of Labor Statistics surveys, the index design is reviewed on a continuing basis and modifications made to 19 improve or maintain the quality and currency of the index inputs. In 1979, the outlet samples for insurance companies and newspapers were redrawn and updated. A three year program for augmenting the size of the fuel oil sample was completed and introduced into the index together with the develop- ment of a new procedure for improving the sampling error of grade No. 6 fuel oil. During 1978, the outlet sample for the fuel index was expanded and data from these new outlets were incorporated into the 1979 index. In view of the importance and periodic volatility of fuel prices, improving the reliability of this component also served to improve the reliability of overall index chanqes over time. The decision to expand the fuel outlet sample was an outqrowth of the 1975 introduction of sampling error measures for the index. The development of usable listings of fuel vendors was completed in stages during 1977 and 1978. Some 400 establishments were contacted to identify roughly 100 for possible inclusion in the sample. Of these, 22 were subsequently initiated for pricing in 1978 bringing the overall sample to over 40. Information was also obtained for the new sample members on the relative volume of business done with the apartment house sector. Such data now permit the development of better sampling error estimates. In order to refresh and augment the insurance companies sampled for the rate and discount information needed construct the insurance index, a redrawinq of the insurance company sample was completed in 1979. Informa- tion on insurance companies serving a sample of 100 apartment houses was collected in 1978. To properly represent the 28 companies found to underwrite the policies for these 100 realtors, insurance expenditure data from building operators were used as proxies for volume of business. 20 For the newspaper advertising specification of the administrative cost component, the sample of newspapers priced and the relative importance of sales for apartment rental advertisements assigned to them had been defined through 1978 from circulation data. To better reflect the actual use patterns of the stabilized sector, information on the newspapers with which classified rental advertising is placed was obtained in 1978 from a sample of realtors. Weights were assigned to the newspapers on the basis of advertising costs reported by these building operators. As in earlier years, all commodity and service specifications were evaluated and revised or updated where appropriate. Technical materials designed to assist price data collectors and reviewers were updated during the last year. These materials are based on data collected from trade associa- tions, vendors, and apartment house operators. A specification manual, technical glossary and illustrative brand lists, identifying brands and models which match or deviate from price specifications, were updated. These mate- rials are used in training, to facilitate data collection, and as aids in minimizing reporting error. 21 Component indexes The selection of items for the index is based upon a number of vari- ables, mainly the relative importance of the item as a component of total operating costs as well as the availability of reliable price data over time. For each item selected, price relatives are calculated by dividing the aggre- gate or average price in the current period by the comparable estimate for the precedinq period. The index measures the change in the total price, that is, the total amount the buyer has to pay for the commodity or service purchased. The concept of price is in most cases clear—the price is the amount charged for a carefully defined pricinq unit with specific terms of sale. The price in- cludes related charges or sales and excise taxes which the purchaser is required to pay. The total price utilized for the index is therefore affected by changes in price as well as any changes in the applicable tax rates or other special charges included in the purchase price. Cash, volume, trade and other discounts, as well as delivery charges — important factors in price change for some items — are also included in the purchase price. A modified type of pricing is used for a number of index components where the price paid is administratively determined. For example, real estate taxes are computed by applying the appropriate tax rate to estimates of assessed values. A change in either of these components affects the total tax bill for an apartment house operator. In order to reflect the price actually paid, the total bill for a matched sample of some 2,400 buildings is calcu- lated for the index. 22 Over-the-year price changes The Price Index of Operatinq Costs was up 8.2 percent between April 1978 and April 1979. The rise resulted primarily from sharp price increases for fuel oil as well as increases in the labor sector, principally reflecting higher union wage levels. Some moderation resulted from a 2.3 percent decline in the taxes, fees and permits index, the largest expenditure category covered by the survey. Price increases for all other index groups combined averaged 6.8 percent. The 1978-79 index rise of 8.2 percent compared with a 0.5 percent increase in the preceding year and a 7.9 percent increase between April 1976 and April 1977. The fuel and utilities index, down 3.9 percent in the preceding year, rose sharply by 24.5 percent over the year ending April 1979. The labor index rose by 10.5 percent since April 1978, compared to a 6.4 percent increase a year ago. The sharper 1978-79 labor rise largely resulted from the introduction of a new labor contract which became effective as of April 21, 1979. The taxes, fees and permits index dropped 2.3 percent between April 1978 and April 1979, about in line with a the 2.4 percent decline in the preceding year. For all other items covered by the index (contractor ser- vices, administrative costs, insurance, parts and supplies and replacement costs), an April 1978-79 combined increase of 6.8 percent compared with a 5.7 percent rise in the preceding year. Taxes, fees and permits This index is represented by real estate taxes, which account for virtually all of the expenditure category. There are two variables which 23 determine the price relative for real estate taxes, the tax rate per hundred dollars of assessed value and the assessed value of the property. A change in either of these components affects the amount of tax a property owner is required to pay. The price relative was calculated from tax bills for a sample of about 900 establishments with . about 2,400 buildings. The reporting units in the sample were systematically drawn with probability of inclusion proportional to size. That is, a selection was made at regular intervals from a universe listina of buildinqs arrayed by borouqh and size (number of stabilized apart- ment units), the intervals beinq a constant number of apartment units. One selection was made for each 300 units. Reporters larqer than the selection interval became certainty selections representing only themselves. The weight for each selection was the sampling interval divided by the number of stabil- ized apartment units. The assessed valuation for each property in April 1979 was obtained and compared with the information obtained for April 1978. Changes in assessments were reviewed and where appropriate verified. Assessments were edited to eliminate differences clearly resulting from structural changes in the pro- perty such as additions or improvements. The changes in assessments used in the index reflect comparisons for identical properties. The bill from which the price relative is calculated represents the current amount of tax due based on current assessments and tax rates. To measure chanqes between April 1978 and April 1979, the assessment for each establishment was individually weiqhted to provide representation of all apartment houses covered by the survey. These weighted assessments were 24 aggregated by borough and multiplied by the appropriate tax rates. Borough totals for these matched samples of buildings were summed for each year to arrive at weighted aggregate tax bills for 1978 and 1979. These aggregates were used to develop the price relative for taxes. Price trends The taxes, fees and permits index declined by 2.3 percent between April 1978 and April 1979. The decrease entirely reflected a drop in assessments, as the real estate tax rate remained unchanged over the year. The 1978-79 decrease followed a 2.4 percent drop in the preceding year. Since 1967, the pattern of increase for the tax index has varied. In the years 1968-72, relatively moderate over-the-year increases of 2.3 and 3.7 percent in 1968 and 1969 and 2.5 percent in 1972 were interspersed with better than 7 percent rises in 1970 and 1971. Between 1972 and 1977, sharp Table 4. Price index of taxes, fees and permits Year (as of Apr i 1 ) Index Percent change 1967 100.0 1968 102.3 2.3 1969 106.1 3.7 1970 113.9 7.4 1971 122.7 7.8 1972 125.8 2.5 1973 136.4 8.4 1974 144.3 5.8 1975 153.6 6.4 1976 169.6 10.4 1977 179.3 5.7 1978 175.0 -2.4 1979 171.1 -2.3 25 increases of 8.4 percent and 10.4 percent in 1973 and 1976, were interspersed with increases of 5.8 and 6.4 percent, respectively, for 1974 and 1975, and 5.7 percent for 1977. (See table 4.) Except for 1973 and 1976, the rate of change for taxes has been less than the total index. (See chart 4.) Over the past two years, declines in assessments as well as the tax rate have contributed to decreases totalling 4.7 percent for the overall tax index. The pattern of decline in assessments has been evident for a number of years. As indicated in the table below, the 2.3 percent 1978-79 fall in assessment levels followed decreases of 1.9, 1.6 and 0.8 percent, respec- tively, in the three preceding years and marked the fourth consecutive year of citywide decline. Year Percent change (as of Total Assess- Tax April ) bill ments rates 1976 10.4 -0.8 11.3 1977 5.7 -1.6 7.4 1978 -2.4 -1.9 -0.5 1979 -2.3 -2.3 While assessment decreases were reported throughout all the boroughs in each of the last four years, the pattern of decline, consistent during the entire period, differed between Manhattan and the rest of the City. The four year Manhattan decline was 3.1 percent, less than half the 8.8 percent drop for all other boroughs combined. Rate of assessment decline (percent as of Apr i 1 ) 1975-76 1976-77 1977-78 1978-79 1975-79 New York City -0.8 -1.6 -1.9 -2.3 -6.4 -0.4 -0.2 -1.2 -1.2 -3.1 Al 1 other boroughs -1.1 -2.5 -2.4 -3.0 -8.8 26 CHART 4 Price index of taxes, fees and permits April 1967-1979 Index, April 1967 = 100 250 1 27 The proportion of properties with assessment changes in each of the past four years is presented below. The data point up the prevalence of assessment declines during this period. Between April 1978 and April 1979, among the 1145 block lots in the index sample, 50 percent experienced declines and only 4 percent reported increases. For Manhattan, the corresponding proportions were 21 percent with assessment declines and 10 percent with increases. In the rest of the City, 61 percent were down and 2 percent up. Percent of block/lots reporting changes in assessments 1975-76 1976-77 1977-78 1978-79 Decl ines 28 38 46 50 Manhattan 22 15 20 21 All other boroughs combi ned 30 46 56 61 Increases 4 4 2 4 10 10 5 10 Al 1 other boroughs combined 2 1 1 2 Labor costs Direct payroll costs, accounting for 86 percent of the labor index cost weight, tend to be the predominant factor affecting the labor index change. Other items in this component for which price relatives are computed include employer payments for social security and unemployment insurance, and for union pension, health and other benefit plans. Changes in payroll costs are estimated from changes in wages for workers in both union and nonunion establishments. The 1969 expenditure 28 survey showed that 90 percent of the union workers employed in apartment buildings covered by the study were members of the Building Service Employees International Union, Local 32-E for the Bronx and Local 32-B for the rest of the City. Because of the predominance of membership in Locals 32-B and 32-E, negotiated rate changes for these two unions are used as the best available measure of union wage change. To measure the change in wages for workers in nonunion establishments, chanqes in straiqht-time earnings of superintendents and janitors in stabil- ized buildinqs are obtained. Wage rates for these workers were collected for April 1978 and April 1979 from a sample of respondents in about 50 establish- ments that participated in the 1969 expenditure survey. For payroll costs, separate price relatives and weights were calculated for: (1) all Bronx workers (predominantly unionized and covered by Local 32-E); (2) superintendents in the four other boroughs in unionized buildings; (3) superintendents in nonunion establishments in boroughs other than the Bronx; (4) all other workers in union establishments in all boroughs except the Bronx; (5) all other workers (represented by wage rates for janitors) in the four boroughs in nonunion establishments. Between April 1978 and April 1979, Local 32-E pay levels covering workers in the Bronx rose due to deferred payments which became effective in September 1978 and March 1979 from an agreement reached in October 1976. Local 32-B wages for workers in all other boroughs resulted from two wage increases: a deferred wage increase received in October 1978 based on a contract siqned in May 1976 and a wage increase paid retroactively to April 21, 1979 under a new agreement reached in early May 1979. 29 CHART 5 Price index of labor costs April 1967-1979 Index, April 1967 = 100 275 205 Labor costs. ^ All items J I L I I I 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Over-the-year percent changes, 1969-1979 20 All items Labor costs 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 30 Since 1976, the Local 32-B contract has included a cost-of-living adjustment clause designed to compensate workers for increases in living costs exceeding wage gains. Cost-of-living adjustments are determined each May retroactive to April 21. No escalator adjustment was made in May 1978 since over-the-year wage changes in April 1978 exceeded the increase in the New York-Northeastern New Jersey Consumer Price Index. Chanqes in employer payments for social security are calculated separately for union superintendents in Local 32-B and for all other workers. For these unionized superintendents, the taxable earnings base for social security payments includes the value of rent received as pay in addition to cash waqes while the social security tax for all other workers is based solely on chanqes in pay levels. In 1979, the social security income cutoff rose to Table 5. Price index of labor costs Year Index Percent (as of Apri 1 ) change 1967 100.0 1968 106.3 6.3 1969 111.8 5.2 1970 124.6 11.4 1971 143.3 15.0 1972 154.4 7.8 1973 170.8 10.6 1974 189.0 10.6 1975 208.4 10.2 1976 212.2 1.8 1977 230.9 8.8 1978 245.6 6.4 1979 271.4 10.5 31 $22,900 from $17,700 in 1978 and social security tax rates increased over the year to 6.13 percent from 6.05 percent. Price trend s A 10.5 percent rise in 1978-79 for the labor compo- nent was sharper than increases of 6.4 percent and 8.8 percent respectively, in the two preceding years. The current year rise for labor was the largest since 1975 and about in line with increases during 1973 and 1974. (See table 5 and chart 5. ) The 1978-79 rise of 10.5 percent for labor was primarily based on hiqher payroll costs. Pay scales, up 11.2 percent between April 1978 and April 1979, accounted for over 90 percent of the labor index rise. A 6.0 percent increase for nonpayroll items, particularly employer payments for social security, accounted for the remaining portion of the labor index r i se . Since 1967, the labor index has risen 171 percent as compared with an overall index rise of 139 percent. Except for 1974 and 1976, the labor index has consistently risen at a faster pace than the all items index. Labor, the third largest component of the index, had a relative impor- tance of about 18 percent in 1979 and has been responsible for roughly 19 percent of the total index increase since 1967. Payroll costs, the single most important item in the labor index accounted for some 16 percent of the overall index rise since 1967. Fuel and utilities The specifications for fuel and utilities are representative of actual consumption patterns in New York City rent stabilized apartment buildings. They are derived from an analysis of expenditures and usage levels 32 in establishments covered by the study. Described below are the pricing procedures used to compute the fuel and utilities component relatives. Fuel oil The specifications developed for measuring fuel oil price change were designed to cover buildings of different size. Data on the type and amount of fuel oil consumed annually and amount per delivery were obtained from a sample of apartment house operators and fuel oil distributors. The item sample was desiqned to represent rent stabilized buildings of all sizes in all borouqhs. Coveraae includes prices for fuel oil No. 4 and two delivery sizes of No. 6 residual fuel. Quotations for the lowest delivered price per gal- lon, New York City leqal sulphur limit, were obtained from a sample of 45 distributors for three types of deliveries. The price per gallon, including volume discounts for the three deliveries listed below, was obtained and weighted according to the relative importance of dollar expenditures of each for different types of buildings covered by the study. Number of gallons Number of gallons Grade per delivery purchased annually No. 4 3,000 50,000 No. 6 4,000 100,000 No. 6 5,500 225,000 Beqinning with the 1979 index, an improvement to the method of calcu- latinq price chanqes for fuel No. 6 was introduced. The sample of No. 6 fuel distributors from which price quotations were obtained was weighted by employ- ment size (used as a proxy for sales volume) to represent all vendors of No. 6 fuel to stabilized apartment buildings. Rouqhly 60 percent of the universe 33 of No. 6 fuel suppliers provide price information for the index. This proce- dure, in addition to improving index inputs, serves to reduce sampling variability, thus making the index results more reliable. Electricity Three representative monthly bills covering April usage levels for electricity were calculated for: (1) 2,500 kilowatt hours of enerqy; (2) 35 kilowatts of demand and 15,000 kilowatt hours of energy; and (3) 220 kilowatts of demand and 82,000 kilowatt hours of energy. The two smaller bills were determined by examining usage levels of buildings which only purchase electricity for public areas and hallways, while the larger bill also covers electricity redistributed to tenants' apartments. The three bills were weiahted to represent the relative importance of each bill in total electricity costs reported for rent stabilized apartment houses. The consumption levels shown in the three bills for electricity, and the consumption levels for gas and purchased steam as well, were determined from records of actual usage levels for a sample of 90 buildings. Water and sewerage Charges for water and sewerage for 1978-79 were reviewed for 100 sample establishments. In years when price changes occur, actual bills are collected for each unit from the various borough offices of the New York City Bureau of Water Registry. The 100 establishments in the sample are all unmetered, so that a standard water bill is priced from year to year. These bills are determined by the frontage, number of floors, housing units, and various types of water outlets (such as sinks) in the building. Seweraae charqes are calculated as a flat percentage of each water bill. Purchased steam Two bills representative of April usage levels of purchased steam were priced for the index; (1) for 2,600,000 pounds, typical 34 of usage in noncentrally air conditioned buildings and apartment complexes and (2) for 1,200,000 pounds, typical of usage in centrally air conditioned buildings. In addition, the two steam bills were appropriately weighted to represent the relative importance of each bill. The amount of steam typically purchased was confirmed by an analysis of records of actual usage for a sample of over 30 establishments. Gas Monthly bills covering April usage levels for gas were calculated for: (1) 12,000 cubic feet, (2) 65,000 cubic feet, and (3) 214,000 cubic feet . The number of cubic feet allocated for the smaller bill was determined by examining usage levels of establishments which consume gas for oil burner pilots; for the intermediate bill, gas consumption covers gas for cooking in the superintendent's apartment or for water heating, in addition to the oil burner pilot; while the larger bill also covers gas for cooking in tenants' apartments. As with electricity, the gas bills are weighted to represent the relative importance of each bill. Te 1 ephone Price changes reflect the monthly bill for 75 message units, business service rate. Price trends The fuel and utilities index rose sharply by 24.5 percent between April 1978 and April 1979, following a decline of 3.9 percent in the preceding year. The 1978-79 rise was the sharpest since the 1974 energy crisis and the third largest on record for the twelve year period covered by the index. Since 1967, the impact of fuel and utility price changes on the operat- ing cost price index has varied on a year to year basis. In the late sixties, 35 the rate of fuel and utility price rise was less than half the overall index increase. Between 1967 and 1970, fuel and utilities rose 7.1 percent as compared with an all-items rise of 16.6 percent. In 1971, largely reflecting sharp fuel oil price increases, a 43.9 percent over the year rise for this component was more than triple the total index increase. (See table 6 and chart 6.) In 1972, a 12.5 percent increase was more than double the overall rise. In 1973, at 7.9 percent, the all-items and fuel and utilities index increases were the same. With the onset of the energy crisis, the 79.6 percent over the year rise in 1974 for this component was four times the overall index increase. Table 6. Price index of fuel and utilities Year Index Percent (as of Apri 1 ) change 1967 100.0 1968 99.8 -0.2 1969 100.7 0.9 1970 107.1 6.4 1971 154.1 43.9 1972 173.3 12.5 1973 187.0 7.9 1974 335.9 79.6 1975 345.1 2.8 1976 349.9 1.4 1977 395.4 13.0 1978 380.0 -3.9 1979 473.1 24.5 36 CHART 6 Price index of fuel and utilities April 1967-1979 Index, April 1967 = 100 500 400 300 200 100 Fuel and utilities y — -^t All items J I I L J L 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Over-the-year percent changes, 1969-1979 80 60 40 H All items Fuel and utilities 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 37 Between April 1974 and April 1976, the 4.2 percent rise in fuel and utilities was about a third of the two year overall index increase. For 1976-77, the fuel and utilities component rise of 13.0 percent was more than the all items index increase of 7.9 percent. In 1977-78, the decline in fuel and utilities, coupled with a drop in taxes, served largely to offset in- creases amonn other index components, resulting in the smallest overall index increase on record. The 24.5 percent 1978-79 rise in fuel and utilities accounted for about two-thirds of the net all items index rise of 8.2 percent. All other items in the index excluding fuel and utilities rose 3.4 percent between April 1978 and April 1979, as compared to an increase of 1.8 percent in the preceding year. A 43 percent jump in fuel oil prices accounted for almost 90 percent of the 1978-79 fuel and utilities increase and some three-fifths of the net all items rise. The dramatic fuel oil price hike of the last year contrasted with an 11 percent decline in the preceding year and was nearly double the 1976-77 increase of 22 percent. The 1979 increase was the largest since fuel oil prices soared 134 percent between April 1973 and April 1974. Year Over the year percent changes fas of Fuel and April ) uti 1 ities Fuel Uti 1 ities 1975 2.8 -1 7 1976 1.4 -2 5 1977 13.0 22 4 1978 -3.9 -11 4 1979 24.5 43 -5 Estimates of fuel oil price change include adjustments to compen- sate for changes in heat yield, as measured by BTU's per gallon. Heat 38 yield declines since April 1978 resulted from changes in the country of origin of fuel consumed in New York City. Fuel consumed in 1979 provided slightly less yield than in 1978, resulting in a relatively minor upward adjustment to the 1978-79 estimate of price increase for fuel oil. In the utilities sector, higher charges were reported for the purchased steam, electricity, natural gas and telephone components. Resulting from rate increases as well as the addition of a surcharge to compensate for lost business, the sharpest rise among the utility components was for purchased steam, up 17 percent between April 1978 and April 1979. In contrast, a 3 percent decline was reported for purchased steam in the preceding year. Increases were also reported for gas, up 8 percent over the year following a 16 percent increase in 1977-78. Reflecting rate increases, telephone bills edged up slightly over the year, while water and sewerage bills remained unchanged . The electricity component rose 2 percent between April 1978 and April 1979 reflecting the impact of an April 24, 1979 rate increase. The affect of the rate increase would have been greater but for a downward adjustment in the rate structure which became effective in January 1979. That adjustment was designed to offset increases in summer surcharges intended to discourage usage in the peak consumption period between May 15 and October 15. A reduc- tion in the sales tax was also a moderating factor. Had there been no modi- fication of the summer/winter differential, the all items index percent increase for 1978-79 would have been 0.1 percentage point higher. 39 Contractor services Nine groups of maintenance and repair items are used to compute the index for contractor services. Included are: (1) repainting of a one-bedroom apartment, (2) plumbing repairs to replace a sink faucet and to clear a stoppage, (3) elevator maintenance contracts for three types of buildings, (4) heating repairs, two for boilers and one for burners, (5) appliance repairs for ref r i qerators and ranges, (6) roofing repairs, (7) air conditioning repairs, (8) wood floor refinishing and (9) work clothing rentals. Price auotations for repainting were obtained from 40 contractors selected accordinq to the geographic area they service. The sample of painting contractors was selected from listings of firms actually used by rent stabil- ized apartment house operators. For plumbing repairs, price quotations for each of two jobs were obtained from a representative sample of 25 plumbing contractors selected according to the importance of expenditures of the geographic areas they service, following the same procedure for selection as described for painting contractors . Price quotations for a one-year elevator service and maintenance contract for three different sizes of buildings were obtained from 20 com- panies. As with painting and plumbing contractors, the sample of reporters follows the distribution of expenditures by borough reported by building operators for the contractor service category in the 1969 expenditure survey. Twenty contractors provided price quotations for roof repairs. For the remaininq contractor service specifications, prices were obtained from a sample of 10 contractors per item. All samples were drawn on the basis of 40 CHART 7 Price index of contractor services April 1967-1979 Index, April 1967 = 100 250 J L All items Contractor services J L 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Over-the-year percent changes, 1969-1979 20 i 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 41 Table 7. Price index of contractor services Year (as of Apri 1 ) index Percent change 1967 100.0 1968 107.5 7.5 1969 111.0 3.3 1970 124.6 12.3 1971 133.5 7.1 1972 143.3 7.4 1973 152.3 6.3 1974 165.7 8.8 1975 180.3 8.8 1976 188.3 4.5 1977 198.3 5.3 1978 209.0 5.4 1979 226.1 8.2 the distribution of expenditures by borough reported by building operators in the 1969 expenditure survey. Price trends Between April 1978 and April 1979, the contractor services index rose 8.2 percent, following an increase of 5.4 percent in the preceding year. (See table 7.) The 1978-79 rise largely reflected higher prices for plumber services, painting and heating repairs as well as elevator maintenance. The 8.2 percent rise for 1978-79 compared with increases averag- ing 5.1 percent in the three precedinq years. The 1978-79 rise was more in line with increases of 8.8 percent a year between April 1973 and April 1975. In 1978-79, the rise for contractor services was in line with the 8.2 percent overall index increase. Over the longer run, contractor services have 42 increased somewhat less rapidly, rising 126 percent since 1967, as compared with an overall index rise of 139 percent. (See chart 7.) Price increases for this component have accounted for about 10 percent of the all items index rise since 1967. Administrative costs Manaqement fees are the largest component of administrative costs. In addition, operators of rent stabilized buildinqs reported expenditures for other administrative costs such as accounting and legal services, advertising, and office suppl ies . Manaqement fees, which represent roughly three-fourths of the admini- strative cost index, are most typically based on a percentage of total gross rent collected. These fees are often calculated either as a flat percentage or on a sliding scale in which the percentage declines as gross rent collec- tion increases. Some fees are on a flat fee basis and not related to gross rent changes. Data on changes in apartment rents, management fee rates, and flat fees were used to develop the management fee portion of the admini- strative cost index. Information on management fee rates and flat fees was obtained from a sample of about 25 management companies who provide information on their method of billing charqes to over 50 stabilized apartment establishments. To calculate the manaqement fee index, price relatives of changes in management fee rates were multiplied by the price relative reflecting changes in rents for a sample of about 400 New York City rent stabilized units. For a small number of management companies with negotiated flat fees not based on a 43 Table 8. Price index of administrative costs Year Index Percent (as of Apri 1 ) chanqe 1967 100.0 1968 102.3 2.3 1969 107.8 5.4 1970 112.3 4.2 1971 120.9 7.7 1972 125.6 3.9 1973 129.8 3.4 1974 134.9 3.9 1975 142.5 5.7 1976 151.4 6.2 1977 162.4 7.3 1978 171.6 5.7 1979 180.6 5.2 percentage of gross rents, actual management fees were used after confirming that there was no change in the services being provided to building owners. Price relatives were also developed for accounting and legal fees, advertising, and office supply expenses. The latter are represented by changes in prices for such items as ledger paper, lease forms, and bill payment envelopes. With the exception of advertising fees, 10 price quota- tions for each item and service were obtained from a representative sample of outlets consistinq of 20 office supply and stationery stores, 10 attorneys and 10 accountants. For advertisinq fees, which are determined from chanqes in newspaper classified advertisinq rates, a sample of 10 newspapers as well as 10 advertisinq companies were contacted for fee information. Price trends Higher management fee charges were largely respons- ible for an administrative cost index rise of 5.2 percent between April 1978 44 CHART 8 Price index of administrative costs April 1967-1979 Index, Apri 11 967 = 100 250 All items Administrative costs I I I L I I I I 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 45 and April 1979. Also contributing to the 1978-79 increase were higher ac- counting fees and office expenses. The 1978-79 component increase compared with a rise of 5.7 percent in the preceding year. (See table 8 and chart 8.) Since 1967, the administrative cost index, which represents about 6 percent of the all-items index weight, rose by 81 percent, substantially below the overall index rise of 139 percent. Among the eight major index qroups measured, the twelve year rate of price increase for administra- tive costs was among the slowest. Since 1967, 4.8 percent of the overall index increase has resulted from higher prices for this component. Insurance Changes in premiums for a specific multi-peril policy, including fire and extended coverage, liability and boiler insurance coverage, are used to measure price movement for the insurance index. For fire, extended cover- age, and liability insurance, premiums for a sample of 100 establishments are calculated. Fire and liability insurance premium data are adjusted to remove the extra cost of purchasing insurance because of mercantile occupancy. Fire and extended coverage premiums are affected by changes in rates as well as changes in insured values of properties. Insured values are derived from directly collected actual cash value data for the properties whose construction and neighborhood characteristics are used in the multi-peril policy priced. Eighty percent of actual cash value, defined as replacement cost less depreciation, is the measure of insured value for each property. Actual cash value is collected from insurance policies for a sample of 100 establ i shments . 46 The insurance component is computed from estimated annual payments for a "special multi-peril policy". Policies for fire resistive buildings as well as other construction types, such as joisted masonry, noncombustible masonry, and modified fire resistive are included. The 100 establishments selected are a representative sample of the total number of rent stabilized buildings within the scope of the study. Liability insurance premiums are based on rates for selected geographic districts of the City in which sample establishments are located and the sauare footaqe of buildinqs in these establishments. Liability premiums are developed for a million dollars worth of coverage per incident. To compute the insurance relative, advisory rates for different types of buildings are obtained from various insurance service organizations Table 9. Price index of insurance costs Year (as of Apri 1 ) Index Percent change 1967 100.0 1968 111.5 11.5 1969 133.3 19.6 1970 157.1 17.9 1971 175.5 11.7 1972 182.7 4.1 1973 195.2 6.9 1974 203.9 4.5 1975 206.8 1.4 1976 274.4 32.7 1977 285.0 3.9 1978 302.7 6.2 1979 316.0 4.4 47 CHART 9 Price index of insurance costs April 1967-1979 Index, April 1967 = 100 325 i Over-the-year percent changes, 1969-1979 48 involved in developing basic ratinq schedules for different lines of insur- ance. Insurance carriers then revise or modify these advisory schedules to conform with their rate settinq policies. In 1979, rates from a newly drawn sample of 18 insurance companies were obtained for 1978 and 1979 from records at the New York State Insurance Department. A weighted average of premiums based on these individual insurance company rates and the other inputs des- cribed are incorporated into the index so that the premium calculated reflects discounts and other modifications from service organization advisory rates currently in effect. Price trends Between April 1978 and April 1979, the insurance index rose 4.4 percent following a 6.2 percent rise in the preceding year. (See table 9.) Among the types of coverage included in the multi-peril policy priced, premiums for fire insurance, up about 7 percent, were largely respon- sible for the 1978-79 increase. Liability premiums, another important portion of the policy priced for properties in the index, remained about unchanged over the year. All premiums are adjusted to exclude the impact of rate changes due to mercantile occupancy. The insurance component, which represents 3.2 percent of the total index weiqht, increased by "216 percent since 1967. (See chart 9.) Insur- ance accounted for 3.8 percent of the overall index rise since the base period. Parts and supplies For this component, price relatives are developed for nine specifica- tions—light switches; floor wax; wet mops; electric light bulbs; indoor latex 49 CHART 10 Price index of parts and supplies April 1967-1979 Index, April 1967 = 100 250 220 190 160 130 100 All items Parts and supplies J I I I L I I I 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Over-the-year percent changes, 1969-1979 20 15 10 H All items Parts and supplies -5 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 50 Table 10. Price index of parts and supplies Year Index Percent ( as of Apri 1 ) change 1967 100.0 1968 104.7 4.7 1969 104.6 -0.1 1970 109.2 4.4 1971 119.1 9.0 1972 125.9 5.7 1973 133.6 6.1 1974 155.0 16.0 1975 181.7 17.2 1976 191.9 5.6 1977 202.1 5.3 1978 216.9 7.3 1979 236.4 9.0 paint; detergent; buckets with wringers, push brooms and washers. Price quotations for each specification are obtained from a sample of about 25 distributors and suppliers actually selling to rent stabilized apartment house operators. Ten quotations are obtained for each of the items except light bulbs for which 20 resoondents provide prices each year. The sample of firms was selected in the same manner as described for contractor services. Price trends Between April 1978 and April 1979, prices for parts and supplies increased 9.0 percent as compared to a 7.3 percent rise for this component a year earlier. (See table 10 and chart 10.) Higher prices for buckets, brooms and light bulbs contributed substantially to the 1978-79 rise. Since 1967, the parts and supplies index has risen by 136 percent, about in line with the 139 percent total index rise. 51 CHART 11 Price index off replacement costs April 1967-1979 Index, April 1967 = 100 220 190 160 130 100 All items W Replacement costs I I I I I J I I I I L 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 Over-the-year percent changes, 1969-1979 20 15 H All items Replacement costs m i ii si h i 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 52 Replacement costs For measuring changes in the appliance and lobby furnishings replace- ment index, data are collected for two sizes of refrigerators; two sizes of qas ranqes; two sizes of air conditioners; dishwashers; and lobby floor runners. Ten price quotations for each specification were obtained from a sample of approximately 60 distributors or manufacturers, except for refri- qerators where 20 quotes for each of the two sizes are collected. All supp- liers in the outlet sample sell directly to stabilized apartment house operators . Table 11. Price index of replacement costs Year (as of Apri 1 ) Index Percent change 1967 100.0 1968 103.7 3.7 1969 105.7 1.9 1970 109.3 3.4 1971 114.7 5.0 1972 117.2 2.2 1973 118.8 1.4 1974 126.1 6.2 1975 148.0 17.4 1976 162.4 9.7 1977 171.8 5.8 1978 180.8 5.3 1979 194.1 7.3 53 Price trends The replacement cost index rose 7.3 percent in 1978-79, followinq a 5.3 percent increase in the preceding year. (See table 11 and chart 11.) The 1978-79 increase was primarily attributable to higher prices for ref riqerators and ranges. Since 1967, the replacement cost index has risen 94 percent, substan- tially below the total index increase. Except for 1975, 1976 and 1978 in- creases for this component have been below the overall index rise. 54 Appendixes Appendix A Reliability of percent changes Since the data provided by the index are derived from samples of outlets and items priced, they may differ from figures that would have been obtained had it been possible to take a complete count of all outlets and items, usinq the same procedures. A system of replicated samples introduced into the index structure in 1975 permits an estimate of sampling error for the Price Index of Operating Costs. 1/ The standard error is a measure of sampling variability. It indicates variations that might occur by chance because only a sample of the universe was surveyed. The chances are about two out of three that estimates of percent change would differ from a complete count by less than the standard error of the estimate. The chances are 95 out of 100 that the difference would be less than twice the standard error. The table provided shows standard errors for over-the-year percent changes in the index for all items and seven components. Data for an eighth component, insurance, did not meet criteria for separate issuance, but were sufficiently reliable for inclusion in the estimate of the all-items standard error. Statements of comparison made in the text of this report are statisti- cally significant at a level of at least two times the standard error; that is, the chances are at least 95 out of 100 that a difference identified in the text indicates a true difference between estimates rather than chance varia- tions arising from the use of samples. For example, with an all-items stand- ard error of .15 percent, there is a 95 percent chance that if a complete count were taken the actual change would be within 0.3 percent or double the standard error. In other words, with a sample-based 1978-79 all-items index rise of 8.2 percent, there is a 95 percent probability that a complete count would yield an increase of between 7.9 and 8.5 percent. Standard errors of April 1978-April 1979 percent changes in the Price Index of Operating Costs Component Standard error All items 1/ .15 Taxes, fees and permits .22 .14 Fuel and utilities .62 .69 Administrative costs .48 .78 Replacement costs 1.45 ~T7 Includes data for insurance not separately presented. T7 For a more complete description of the sampling error design see Appendix A, "Measurement of Sampling Error," 1975 Price Index of Operating Costs for Rent Stabilized Apartment Houses in New York City , Regional Report No. 45. 56 Appendix B Selected pricing specifications Labor Page Pay rates for non-unionized apartment house building superintendents 58 Pay rates for non-unionized apartment house building janitors or porters 58 Fuel and utilities Petroleum fuel oil No. 4 (3,000 gallon delivery) 59 Petroleum fuel oil No. 6 (4,000 gallon delivery) 59 Petroleum fuel oil No. 6 (5,500 gallon delivery 59 Electricity (2,500 KWH) 60 Electricity (15,000 KWH, 35 KW) 60 Electricity (82,000 KWH, 220 KW) 60 Gas (12,000 cubic feet) 61 Gas (65,000 cubic feet) 61 Gas (214,000 cubic feet) 61 Purchased steam (1,200,000 pounds) 62 Purchased steam (2,600,000 pounds) 62 Telephone 62 Contractor services Repainting (one bedroom apartment) 63 Plumbing repair (replacement of sink faucet) 64 Plumbing repair (clearing stoppage) 64 Elevator maintenance contract (6 floor, 1 elevator building) 65 Elevator maintenance contract (13 floor, 2 elevator building) 65 Elevator maintenance contract (19 floor, 3 elevator building) 66 Oil burner parts replacement 66 Boiler maintenance (tube replacement).... 67 8oiler maintenance (stay bolt welding)... 67 Refrigerator repair 68 Gas range repair ". 68 Roof repair 69 Air conditioner parts replacement 69 Floor maintenance (325 square foot area). 70 Floor maintenance (515 square foot area). 70 Contractor services (continued) Page Floor maintenance (700 square foot area).. 71 Work clothing rental (polyester blend uniforms) 71 Administrative Management fees 72 Accountant fees 72 Attorney fees 73 Newspaper classified advertisement rates.. 73 Standard lease forms 73 Printed bill payment envelopes 74 Ledger paper 74 Insurance Actual cash value of property for fire and extended coverage insurance 74 Parts and supplies Light bulbs 75 Snap Uimbler light switch 75 Wet mop, head and handle 75 Floor wax 76 Interior latex paint 76 Push broom and handle 76 Detergent 77 Bucket with wringer 77 Washers 77 Repl acements Refrigerator-freezer (9-11 cubic feet).... 78 Refrigerator-freezer (11.5-13 cubic feet) 78 Air conditioner (6,000-8,999 BTU's) 79 Air conditioner (9,000-12,999 BTU's) 79 Floor runner 80 Dishwasher 80 Gas range (20 inch width) 81 Gas range (30-32 inch width) 81 Specification pricing is key to collection of comparable data for the Price Index of Operating Costs for Rent Stabilized Apartment Houses in New York City as well as other Bureau price index programs. A specification is a detailed description of the characteristics which determine the price, quantity, and quality of a commodity or service. As an aid to data collectors and reporters, the specifications include other identifying information in addition to the price determining factors. Data collectors are required to price according to specification, following detailed collection instructions so that the prices for the commodity or service described will be comparable. Specifications are regularly evaluated and modified as is necessary. Information on market conditions and changes in product lines is used to insure that the specifications are up to date. New items are introduced into the index in a fashion that ensures comparability of all published indexes over time. 57 Pay rates for non-unionized apartment house building superintendents DESCRIPTION: Pay rates for non-unionized building superintendents Duties and Responsibilities : To Be classified as superintendent, employee must have other building personnel which he supervises and perform most of the following: A. Hires building personnel B. Trains personnel C. Plans sequence of maintenance work D. Determines alterations or re- pairs required E. Determines work that can be completed by building personnel F. Obtains bids from contractors G. Submits bids and recommend- ations to supervisors H. Supervises contracted projects to verify adherence to specifica- tions I . Purchases building and main- tenance supplies J. Purchases equipment and furn- ishings K. Shows apartments to prospective tenants May also perform : U~. Tends boiler M. Performs other general jani- torial duties PRICING UNIT: Straight-time pay rate covering the first payroll period in April SPECIAL INSTRUCTIONS: Obtain information for each employee if more than one superintendent in build- ing, also Services Provided: ITi Apartment on premises provid- ed as pay O. Uniforms provided SPECIFY: Length of payroll period; hours work- ed in payroll period; duties and re- sponsibilities by letter; services pro- vided by letter; value of apartment received as pay if applicable; other duties or services provided if not list- ed by letter Pay rates for non-unionized apartment house building janitors or porters DESCRIPTION: Pay rates for non-unionized building janitors or porters Duties and Responsibilities : To" Ee classified as Janitor or por- ter, employee must perform most of the following duties and/ or respons- ibilities: A. Keep building in clean and or- derly condition B. Tends boiler to provide heat and hot water for tenants C. Sweeps and cleans hallway and stairs D. Handles trash E. Performs routine touch-up paint- ing, plumbing and electrical wir- ing and other routine mainten- ance activities using hand tools F. Notifies management concerning need for major repairs G. Cleans snow and debris from sidewalk and otherwise main- tains outside of building May also perform : H. Show apartment to prospective tenants I . Take complaints J. Handle emergencies PRICING UNIT: Straight-time pay rate covering the first payroll period in April SPECIAL INSTRUCTIONS: Obtain information for each employee if more than one janitor or porter in building, also Services Provided: Apartment on premises provid- ed as pay L. Uniforms provided SPECIFY: Length of payroll period; hours work- ed in payroll period; duties and re- sponsibilities by letter; services pro- vided by letter; value of apartment received as pay if applicable; other duties or services provided if not list- ed by letter 58 Petroleum fuel oil, No. 4 (3,000 gallon delivery) DESCRIPTION: Fuel oil No. 4, legal sulphur con- tent PRICING UNIT: Lowest delivered cash price per gal- lon within New York City's five bor- oughs excluding taxes and other ad- ditional charges, based on the follow- ing: To a regular customer with good credit rating (payment within 30 days) owning a single building, who plans to purchase 50, 000 gallons per year in lots of 3,000 gallons per delivery, tank size 5,000 gallons SPECIFY: Taxes or additional charges not included in the price per gallon Petroleum fuel oil, No. 6 (4,000 gallon delivery) DESCRIPTION: Fuel oil No. 6, legal sulphur con- tent PRICING UNIT: Lowest delivered cash price per gal- lon within New York City's five bor- oughs excluding taxes and other ad- ditional charges, based on the follow- ing: To a regular customer with good credit rating (payment within 30 days) owning a single building, who plans to purchase 100, 000 gallons per year in lots of 4,000 gallons per delivery, tank size 7,500 gallons SPECIAL INSTRUCTIONS: Confirm with respondent any change in pricing policy for Nc. 6 fuel from pre- vious pricing period if: a. Price same for No. 6 full wagon and split wagon in previous period but currently different or; b. Price for split wagon in previous period differed from full wagon but both deliveries have the same price in current period. SPECIFY: Taxes or additional charges not Included in the price per gallon Petroleum fuel oil, No. 6 (5,500 gallon delivery) DESCRIPTION: Fuel oil No. 6, legal sulphur con- tent PRICING UNIT: Lowest delivered cash price per gal- lon within New York City's five bor- oughs excluding taxes and other ad- ditional charges, based on the follow- ing: To a regular customer with good credit rating (payment within 30 days) owning a single building, who plans to purchase 225, 000 gallons per year in lots of 5, 500 gallons per delivery, tank size approx- imately two separate 10,000 gallon tanks SPECIAL INSTRUCTIONS: Confirm with respondent any change in pricing policy for No. 6 fuel from pre- vious pricing period if: a. Price same for No. 6 full wagon and split wagon in previous period but currently different or; b. Price for split wagon in previous period differed from full wagon but both deliveries have the same price in current period. SPECIFY: Taxes or additional charges not included In the price per gallon 59 Electricity (2,500 KWH) DESCRIPTION: Quantity: 2. 500 KWH of energy PRICING UNIT: Total monthly net bill in April per rate schedule SPECIFY: Identification number and effective date of rate schedule. All other costs in- cluding sales tax -- local. State, and Federal; rate differential taxes, fuel and transfer adjustment costs which are applicable to net bills Electricity (15,000 KWH, 35 KW) DESCRIPTION: Quantity: Ene rgy Demand 15. 000 KWH 35 KW PRICING UNIT: Total monthly net bill In April per rate schedule SPECIFY: Identification number and effective date of rate schedule. All other costs in- cluding sales tax -- local. State, and Federal; rate differential taxes, fuel and transfer adjustment costs -- which are applicable to net bills Electricity (82,000 KWH, 220 KW) DESCRIPTION: Quantity: Energy Demand 82, 000 KWH 220 KW PRICING UNIT: Total monthly net bill in April per rate schedule SPECIFY: Identification number and effective date of rate schedule. All other costs in- cluding sales tax -- local. State, and Federal; rate differential taxes, fuel and transfer adjustment costs -- which are applicable to net bills 60 Gas (1 2,000 cubic feet) DESCRIPTION': Natural gas, manufactured or mixed Quantity: 12.000 cubic feet PRICING UNIT: Total monthly net bill in April per rate schedule SPECIFY: Identification number and effective date of rate schedule. All other costs in- cluding sales tax -- local, State, and Federal; rate differential taxes and fuel adjustment costs -- which are appli- cable to net bills Gas (65,000 cubic feet) DESCRIPTION: Natural gas, manufactured or mixed Quantity: 65,000 cubic feet PRICING UNIT: Total monthly net bill in April per rate schedule SPECIFY: Identification number and effective date of rate schedule. All other costs in- cluding sales tax -- local. State, and Federal; rate differential taxes and fuel adjustment costs -- which are appli- cable to net bills Gas (214,000 cubic feet) DESCRIPTION: Natural gas, manufactured or mixed Quantity: 214, 000 cubic feet PRICING UNIT: Total monthly net bill in April per rate schedule SPECIFY: Identification number and effective date of rate schedule. All other costs in- cluding sales tax -- local. State, and Federal; rate differential taxes and fuel adjustment costs -- which are appli- cable to net bills 61 Purchased steam ( 1,200,000 pounds ) DESCRIPTION: Quantity: 1,200,000 pounds, annual service for power or power and heat PRICING UNIT: Total monthly net bill in April per rate schedule SPECIFY: Identification number and effective date of rate schedule. All other costs including sales tax — local, State, and Federal; rate differential taxes and fuel adjustment costs — which are applicable to net bills Purchased steam ( 2,600,000 pounds ) DESCRIPTION: Quantity: 2,600,000 pounds, heat or power PRICING UNIT: Total monthly net bill in April per rate schedule SPECIFY: Identification number and effective date of rate schedule. All other costs including sales tax — local, State, and Federal; rate differential taxes and fuel adjustment costs — which are applicable to net bills Telephone DESCRIPTION: Rates for business service - 75 message units AREAS: Zones 1-4 Zone 5 Zones 6-10 Zones 11-15 PRICING UNIT: Total monthly net bill in April per rate schedule SPECIFY: Effective date of rate schedule. All other costs including local and State sales taxes and Federal excise tax which are applicable to net bill 62 Repainting one bedroom apartment DESCRIPTION: Charge for repainting of one bedroom apartment (refer to floor plan) . Living room, 12x19x8 feet . Bedroom, 11 x 17 x 8 feet . Foyer, 9x12x8 feet . Kitchen, 8x11x8 feet (wood cabinets) . Bathroom, 6x8x8 feet (tiled walls) . 6 standard size doors plus 2 closet bi-fold doors . 4 windows, double hung, regular size (two in each room) . 5 closets Total, approximately 2,500 square feet surface area Furniture Furniture moved as needed by con- tractor and protected by dropcloths LABOR: (one coat same as previous color) Paint ceilings, sidewalls, closets, win- dow sash and trim, doors and standing trim and baseboards, both sides of 5 doors, one side of entrance door, and one side of 4 windows. Include average pointing up (filling in small cracks and nail holes) per contractor's definition No other work to be done in apartment building MATERIALS: Type of paint for walls and ceilings: a. Flat oil b. Latex Kitchen, bathroom and trim: May be enamel or semi-gloss Grade: Professional or commercial c. First quality or line d. Second quality or line WORKMANSHIP: High quality PRICING UNIT: Charge for repainting a one bedroom apartment to an established customer on a non-volume basis SPECIAL INSTRUCTIONS: Report union status of reporter under Remarks on BLS form 2901 SPECIFY: Type of paint and quality used by letter. Enter by agent originated footnote If sales tax is absorbed by reporter Floor plan Living Room 12'-0" x J9'-0" Chamber 11 '-0" x 1T-0" j Foyer i 9'-0"xl2'-0" CI . CI . CI . Entry Ki tchen . S'-O-xll '-0" Note: Bathroom walls are tiled (4 ft. up) Kitchen walls are not tiled. Broken line indicates cabinets over counters. Cabinets are not to be painttd. 63 Plumbing repair (replacement of tink faucet) DESCRIPTION: Charge for the replacement of a sink faucet with installation conditions and equipment as specified below MATERIALS: Combination (mixing) faucet , swing spout, ledge type (horizontal deck) with: A. Dual controls (separate handles) B. Single lever control Aerator LABOR: Remove old faucet and install replace- ment faucet, a one hour, one-man on the premise job, one hour travel time Replacement conditions: Standard or convenient arrangement of pipes; pipes do not need replace- ment WORKMANSHIP: High quality PRICING UNIT: Charge for replacing of sink faucet SPECIAL INSTRUCTIONS: Faucet priced should be model used to replace faucets in buildings erected a- round 1960-62 Report cost of material and installation charges separately Determine initially whether respondent is a union or nonunion contractor and enter status in Remarks section of BLS form 2901 SPECIFY: Cost of sink faucet and labor separately Brand and model number of faucet Plumbing repair (clearing stoppage) DESCRIPTION: Clearing of stoppage in kitchen sink due to grease build-up LABOR: Removing of stoppage with a power snake or wire; approximately a two-hour job including travel time PRICING UNIT: Charge for clearing stoppage SPECIAL INSTRUCTIONS: Indicate if minimum charge is made per call, and note period of minimum charge; indicate rate for each hour thereafter Determine initially whether respondent is a union or nonunion contractor and enter status in Remarks section of BLS form 2901 SPECIFY: Minimum charge, if any, and hourly charge thereafter. If respondent has a separate charge for the use of power snake, the amount if any 64 Elevator maintenance contract (6 floor, single elevator building) DESCRIPTION: Monthly price paid for a one year con- tract, "regular" shift excluding emer- gency service charges, for 6 floor build- ing with one fully electric elevator, ser- vicing 50 apartments Capacity: 2,000 pounds Speed: 100 feet per minute Traction: A. Overhead B. Basement Landings: 7 Openings: 7 Emergency service is defined as a shut- down that results in no elevator service in the building LABOR AND MATERIALS: Contract to cover charges for labor, repairs, and/ or replacements as fol- lows: 1. Examine, adjust, clean, lubri- cate, furnish lubricants and when conditions warrant, repair or re- place machine, motor, generator and controller parts , including: worms, gears, thrusts, bearings, brake magnet coils, brake shoes, brushes, windings, commutators, rotating elements, coils, con- tacts, resistors, magnet frames, and other mechanical parts 2. Keep guide rails lubricated except when roller guides are used. Re- new guide shoe gibs and rollers when necessary 3. Examine all safety devices and governors and equalize tension on hoisting ropes. Renew all wire ropes as necessary to maintain safety, repair and/or replace con- ductor cables PRICING UNIT: Monthly bill for a one year contract covering work performed during "regu- lar" work hours only SPECIAL INSTRUCTIONS: Determine initially whether union or nonunion and enter name of union and local number in Remarks section of BLS form 2901 SPECIFY: Traction by letter; hours during which time-and-a-half is paid, and hours dur- ing which double time is paid Elevator maintenance contract (13 floor, 2 elevator building) DESCRIPTION: Monthly price paid for a one year con- tract, "regular" shift excluding emer- gency service charges, for 13 floor building with two fully electric eleva- tors, servicing 100 apartments Capacity: 2, 500 pounds Speed: 250 feet per minute Traction: A. Overhead B. Basement Landings: 14 Openings: 28 Emergency service is defined as a shut- down that results in no elevator service in the building LABOR AND MATERIALS: Contract to cover charges for labor, repairs, and/or replacements as fol- lows: 1. Examine, adjust, clean, lubri- cate, furnish lubricants and when conditions warrant, repair or re- place machine, motor, generator and controller parts~ including: worms, gears, thrusts, bearings, brake magnet coils, brake shoes, brushes, windings, commutators, rotating elements, coils, con- tacts, resistors, magnet frames, and other mechanical parts 2. Keep guide rails lubricated except when roller guides are used. Re- new guide shoe gibs and rollers when necessary 3. Examine all safety devices and governors and equalize tei.sion on hoisting ropes.. Renew all wire ropes as necessary to maintain safety, repair and/or replace con- ductor cables PRICING UNIT: Monthly bill for a one year contract covering work performed during "regu- lar" work hours only SPECIAL INSTRUCTIONS: Determine initially whether union or nonunion and enter name of union and local number in Remarks section of BLS form 2901 SPECIFY: Traction by letter; hours during which time-and-a-half is paid, and hours dur- ing which double time is paid 65 Elevator maintenance contract (19 floor, 3 elevator building) DESCRIPTION: Monthly price paid for a one year con- tract, "regular" shift excluding emer- gency service charges, for 19 floor building with three fully electric eleva- tors, servicing 200 apartments Capacity: 2, 500 pounds Speed: 350 feet per minute Traction: A. Overhead B. Basement Landings: 20 Openings: 60 Emergency service is defined as a shut- down that results in no elevator service in the building LABOR AND MATERIALS: Contract to cover charges for labor, repairs, and/or replacements as fol- lows: 1. Examine, adjust, clean, lubri- cate, furnish lubricants and when conditions warrant, repair or re- place machine, motor, generator and controller parts , including: worms, gears, thrusts, bearings, brake magnet coils, brake shoes, brushes, windings, commutators, rotating elements, coils, con- tacts, resistors, magnet frames, and other mechanical parts 2. Keep guide rails lubricated except when roller guides are used. Re- new guide shoe gibs and rollers when necessary 3. Examine all safety devices and governors and equalize tension on hoisting ropes. Renew all wire ropes as necessary to maintain safety, repair and/or replace con- ductor cables PRICING UNIT: Monthly bill for a one year contract covering work performed during "regu- lar" work hours only SPECIAL INSTRUCTIONS: Determine initially whether union or nonunion and enter name of union and local number in Remarks section of BLS form 2901 SPECIFY: Traction by letter; hours during which time-and-a-half is paid, and hours dur- ing which double time is paid Oil burner parts replacement DESCRIPTION: Replace ignition transformer in oil burner; type typically found in an apartment building erected around 1960-62 LABOR: Remove defective ignition transformer; replace with a new unit; check and adjust as necessary; a one-hour, one-man on the premises job; one hour travel time. Work to be completed during "regular" shift Charge for labor determined as follows : A. Portal to portal B. Time spent on premises C. Flat rate D. Other (specify) WORKMANSHIP : High quality MATERIALS: Ignition transformer E. Single pole F. Double pole (dual) PRICING UNIT: Charge for replacing ignition trans- former in oil burner to an apartment house operator, regular customer, on a noncontract basis SPECIAL INSTRUCTIONS: Obtain from respondent size burner serviced most frequently in apartment houses; and price parts and labor for that size. Determine initially whether respondent is a union or nonunion con- tractor and enter status in Remarks section of BLS form 2901. If unionized or partly unionized, obtain union name and type of workers covered SPECIFY: Cost of ignition transformer and labor separately; type of ignition transformer by letter; brand and model of oil burner to which price quoted refers, or brand and model number of transformer Hourly charge for this particular ser- vice which would be used in determining the bill; how labor charge is determined by letter, if (D) specify 66 Boiler maintenance (tube replacement) DESCRIPTION: Charge to regular customer for the re- placement of 1 2 steel boiler tubes, a two-man, 6 hour on the premise job; 1 hour travel time. Work to be completed during "regular" shift Charge for labor determined as follows : E. Portal to portal F. Time spent on premises G. Flat rate H. Other (specify) Conditions : I. Building : Located in a good neigh- borhood; easy access to building, i.e., no major parking problems 2. Boiler : Located in an area of the building readily accessible from the street, i.e., (a) a minimum of difficulty in moving equipment and materials in and out of build- ing; (b) adequate working space; and (c) no safety hazards MATERIALS: Dimension of tubes : Diameter: Tinches Length: 72 inches Place of manufacture of tubes : C. Domestic D. Imported WORKMANSHIP: High quality PRICING UNIT: Charge for replacing tubes SPECIAL INSTRUCTIONS: Determine whether respondent is a union or nonunion contractor and enter status in Remarks section of BLS form 2901. If unionized or has some union work- ers, obtain name of union and if par- tially organized, type of workers covered Report cost of materials and installation charge separately SPECIFY: Cost of tubes and labor separately, place of manufacture by letter; if D, country of origin. How labor charge is determined by letter, if H, specify Boiler maintenance (stay bolt welding) DESCRIPTION: Charge to regular customer for welding of 12 bolts or rods, a two-man, 4 hour on the premise job; 1 hour travel time. Work to be completed during "regular" shift Charge for labor determined as follows : E. Portal to portal F. Time spent on premises G. Flat rate H. Other (specify) Conditions : I. Building : Located in a good neigh- borhood; easy access to building, i.e., no major parking problems 2. Boiler : Located in an area of the building readily accessible from the street, i.e., (a) a minimum of difficulty in moving equipment and materials in and out of build- ing; (b) adequate working space; and (c) no safety hazards WORKMANSHIP: High quality PRICING UNIT: Charge for welding of 12 stay bolts or rods SPECIAL INSTRUCTIONS: Determine whether respondent is a union or nonunion contractor and enter status in Remarks section of BLS form 2901. If unionized or has some union work- ers, obtain name of union and if par- tially organized, type of workers covered For welding stay bolts or rods, indicate if minimum charge is made per call and note period of minimum charge; indicate rate for each hour thereafter SPECIFY: Minimum charge, if any, how labor charge is determined by letter, if H, specify 67 Refrigerator repair DESCRIPTION: Replace thermostatic control in single door, 12-cubic foot refrigerator; model originally placed in buildings erected around 1960-62 LABOR: Remove defective thermostatic control; replace with new unit; check and adjust as is necessary; a one-hour, one-man on the premises job; one hour travel time Charge for labor determined as fol - lows: ' A. Portal to portal B. Time spent on premises C. Flat rate D. Other (specify) WORKMANSHIP: High quality PRICING UNIT: Charge for replacing thermostatic con- trol in refrigerator SPECIAL INSTRUCTIONS: Determine initially whether respondent is a union or nonunion contractor and enter status in Remarks section of BLS form 2901. If unionized or partially unionized, obtain union name and type of workers covered SPECIFY: Cost of parts and installation charge separately; bt and of refrigerator typi- cally serviced, if applicable; brand and stock number of thermostatic control; minimum charge, if any Hourly charge for this particular ser- vice which would be used in determining the bill; how labor charge is determined by letter, if D, specify Gas range repair DESCRIPTION: Replace thermostat in oven of 30 inch gas range originally placed in buildings erected around 1960-62 LABOR: Remove defective thermostat; replace witn new unit; connect wires and tubes; calibrate, check and adjust as is nec- essary; a one-hour, one-man on the premises job; one hour travel time Charge for labor determined as fol - low S : A. Portal to portal B. Time spent on premises C. Flat rate D. Other (specify) PRICING UNIT: Charge for replacing oven thermostat SPECIAL INSTRUCTIONS: Determine initially whether respondent is a union or nonunion contractor and enter status in Remarks section of BLS form 2901. If unionized or partially unionized, obtain union name and type of workers covered SPECIFY: Cost of parts and installation charge separately; brand of range typically serviced, if applicable; brand and stock number of thermostat; minimum charge, if any Hourly labor charge for this particular service which would be used in deter- mining the bill; how labor charge is de- termined by letter, if D, specify 68 Roof repoir DESCRIPTION: Repair 100 square foot area of roof due to water leak Type of roof: Flat, no gravel LABOR: Locate leak; clean area around leak, trowel on roofing compound; apply cap sheet; apply compound around seams. A two-hour on the premises job; one hour travel time Charge for labor determined as fol - lows: ~K. Portal to portal B. Time spent on premises C. Flat rate D. Other (specify) WORKMANSHIP: High quality MATERIALS: 1. Cap sheet (roll roofing, topsheet, etc. ) Weight : E. Light (43 to 45 pounds) F. Medium (55 pounds) G. Heavy (65 pounds and up) 2. Roofing compound (specify type) PRICING UNIT: Charge for repairing 100 square foot area SPECIAL INSTRUCTIONS: Determine initially whether respondent is a union or nonunion contractor and enter status in Remarks section of BLS form 2901. If unionized or partially unionized, obtain union name and type of workers covered Report cost of material and labor sep- arately; indicate if minimum charge is made per call and note period of mini- mum charge; indicate rate for each hour thereafter Exclude extra heavy weight (90 pound) cap sheet (gravel embedded) SPECIFY: Type and weight of cap sheet by letter; type of roofing compound; cost of labor and materials separately Number of men sent out on job; hourly labor charge for this particular service which would be used in determining the bill; how labor charge is determined by letter, if D, specify Air conditioner parts replacement DESCRIPTION: Replace thermostat in room conditioner unit, through the wall, 4-6 year old model typically found in apartment living rooms or in studio units Size : BTU range 9,000 - 11,000, 115 or dual voltage (230-208) LABOR: Locate difficulty ; remove defective thermostat and replace with new one, check and adjust as is necessary; a one- hour, one-man on the premises job; one hour travel time Charge for labor determined as follows : A. Portal to portal B. Time spent on premises C. Flat rate D. Other (specify) WORKMANSHIP: High quality PRICING UNIT: Charge for replacing air conditioner thermostat to an apartment house opera- tor, regular customer, on a noncontract basis SPECIAL INSTRUCTIONS: Determine initially whether respondent is a union or nonunion contractor and enter status in Remarks section of BLS form 2901. If unionized or partially unionized, obtain union name and type of workers covered SPECIFY: Cost of parts and labor charges sep- arately; brand of air conditioner typi- cally serviced, if available; model num- ber; brand and stock number of therm - ostat; minimum charge, if any Hourly charge for this particular ser- vice which would be used in determining the bill; how labor charge is determined by letter, if D, specify 69 Floor maintenance (325 square foot area) DESCRIPTION: Refinishing of wood flooring for a studio apartment; approximately 325 square foot area to be finished, or 1-1/2 rooms LABOR: Scrape and apply 2 coats of synthetic resin and/or vinyl plastic sealer/fin- isher WORKMANSHIP : High quality PRICING UNIT: Charge for refinishing floors including materi als to an established customer on a non-volume basis Basis for fee determination : A~! For entire job including labor and material, determined by price per room B. For entire job including labor and material, determined by price per square foot SPECIAL INSTRUCTIONS: Determine initially whether respondent is union or nonunion contractor and en- ter status in remarks section of BLS form 2901. If unionized or partially unionized, obtain union name and type of worker covered SPECIFY: How billed by letter; if Aor B, price per room or square foot. Cost and quantity of sealer/ finisher included in price, brand name of sealer/ finisher if avail- able Floor maintenance (515 square root area } DESCRIPTION: Refinishing of wood flooring for a one- bedroom apartment; approximately 515 square foot area to be finished, or 2-1/2 rooms LABOR: Scrape arid apply 2 coats of synthetic resin and/or vinyl plastic sealer/fin- isher WORKMANSHIP: High quality PRICING UNIT: Charge for refinishing floors including materials to an established customer on a non-volume basis Basis for fee determination : For entire job including labor and material, determined by price per room B. For entire job including labor and material, determined by price per square foot SPECIAL INSTRUCTIONS: Determine initially whether respondent is union or nonunion contractor and en- ter status in remarks section of BLS form 2901. If unionized or partially unionized, obtain union name and type of worker covered SPECIFY: How billed by letter; if Aor B, price per room or square foot. Cost and quantity of sealer/ finisher included in price, brand name of sealer/ finisher if avail- able 70 Floor maintenance (700 square foot area) DESCRIPTION: Refinishing of wood flooring for a two- bedroom apartment; approximately 700 square foot area to be finished, or 3-1/2 rooms LABOR: Scrape and apply 2 coats of synthetic resin and/ or vinyl plastic sealer/fin- isher WORKMANSHIP: High quality PRICING UNIT: Charge for refinishing floors including materials to an established customer on a non-volume basis Basis for fee determination : A"! For entire job including labor and material, determined by price per room B. For entire job including labor and material, determined by price per square foot SPECIAL INSTRUCTIONS: Determine initially whether respondent is union or nonunion contractor and en- ter status in remarks section of BLS form 2901, If unionized or partially unionized, obtain union name and type of worker covered SPECIFY: How billed by letter; if A or B, price per room or square foot. Cost and quantity of sealer/finisher included in price, brand name of sealer/finisher if avail- able Work clothing rental (polyester blend uniforms) DESCRIPTION: Polyester blend uniforms, dark colors PRICING UNIT: Price for rental, cleaning and main- tenance of two uniform changes per week for five employees SPECIFY: Number of deliveries per week; if price quoted is typically for one man or for five men 71 Management fees DESCRIPTION: Fee charged by management company to apartment building owners Method of fee determination : A. Fee determined by applying fixed percentage to gross monthly rent B. Sliding percentage based on annual gross rent; pro-rated monthly C. Other method (describe) Service included in management fee : D. Renting vacant apartments E. Preparing leases F. Handling evictions G. Handling payroll for building per- sonnel H. Handling payments to suppliers, contractors, etc, I . Collecting rent payments J. Advertising PRICING UNIT: Monthly percentage and/ or fee (dollar amount) charged to building owner SPECIAL INSTRUCTIONS: If fee determined by method A or B en- ter percentage(s) as well as dollar a- mount of fee. If fee determined by method C, enter dollar amount of monthly fee only SPECIFY: Method of fee determination by letter; dollar amount of gross monthly rent; if method B, gross annual rent and dates covered i.e., calendar or fiscal year; services included by letter; other ser- vices provided which are not listed, if applicable Accountant fees DESCRIPTION: Fee per building to an established client with whom the accountant is doing re- curring business Services included in fee : A. Audit owner's books B. Audit owner's bank statements C. Prepare Federal, State and local income tax statement D. Prepare financial statement E. Prepare balance sheet F. Prepare profit and loss state- ment G. Prepare payroll H. Prepare payroll tax records I . Keep financial records (specify type of record) J . Other services (specify) Method of fee determination : K. Negotiated flat fee L. Time spent basis (specify usual amount of time spent) M. Other (specify) Frequency of each service performed ; frequency of payment: N. Monthly O. Quarterly P. Semi-annually Q. Annually R. Other (specify) PRICING UNIT: Annual fee to client SPECIAL INSTRUCTIONS: For each service, enter the service in- cluded and frequency performed by let- ter For method of fee determination, enter the type and frequency of payment by letter SPECIFY: Type of service performed by letter, frequency of service by letter; method of payment by letter; frequency of pay- ment by letter, if I, J, L, M, or R, specify in detail 72 Attorney (ees DESCRIPTION: Fee to a client with whom the attorney is doing recurring business for handling a dispossess notice for non-payment of rent Services usually performed : A. Prepare notice of dispossess B. File notice of petition in court C. Have notice served by process server PRICING UNIT: Fee for handling an individual dispossess notice including all applicable fees, i.e. court filing fee and process server's fee SPECIFY: Indicate average number of dispossess notices handled per month; separately specify (1) attorney's basic fee (2) court filing fee and (3) process server's fee Newspaper classified advertisement rates DESCRIPTION: Advertisement to rent an unfurnished a- partment; rate for placing a three line ad in the classified section of a news- paper. Price is for: A. For 7 day dailies: rate for place- ment in Friday, Saturday and Sun- day editions B. For 6 day dailies: rate for 3 con- secutive days including weekend edition C. For weeklies: rate for one week D. Other (specify) PRICING UNIT: Rate per 3 agate line advertisement SPECIFY: A, B, C or D. If quoted per line, line rate Standard lease forms DESCRIPTION: Standard lease form, 2 or 3 pages, folded (may be the improved Gilsey, Real Es- tate Board, or Blumberg) Quantity : 2 dozen PRICING UNIT: Price for 2 dozen forms, sold: A. Individually B. In package containing 2 dozen forms SPECIAL INSTRUCTIONS: If available in single units, obtain price per unit and enter price for 2 dozen SPECIFY: How sold by letter; which form is being priced (by name and form number) 73 Printed bill payment envelopes DESCRIPTION: Printed bill payment mailing envelopes, white wove, 24 pounds, standard opening with 4 lines printed return mailing ad- dress and printed space for sender's address Quantity : 1,000 envelope order Size : D. No. 9 3-7/8" x 8-7/8" (approximately) E. No. 10 4-1/8" x 9-1/2" (approximately) PRICING UNIT: Price for order of 1,000 envelopes in volume selling size SPECIAL INSTRUCTIONS: Obtain price for size typically sold SPECIFY: Size by letter Ledger paper DESCRIPTION: Tinted, high grade columnar ledger paper, package of 100 sheets, approximately 9-1/4" by 11-7/8", 2 to 24 column, 30 lines PRICING UNIT: Price per package of 100 sheets Actual cash value of property for fire and extended coverage insurance DESCRIPTION: Actual cash value (defined as replacement cost less depreciation) of property used to determine the insured value applied to rates for fire and extended coverage insurance purchased either as part of: A. Special multi-peril policy, or, B. As separate policy for fire and extended coverage only Level of actual cash value and insured value determined by: C. Reappraisal D. Owner set Change in cash value or policy rewritten in connection with: E. Refinancing F. Other reason (specify) PRICING UNIT: Actual cash value for April of each year SPECIAL INSTRUCTIONS: For each pricing period, determine dates current policy in force and how actual cash value was set regardless of whether the actual cash value was changed. Although policies typically run for one year, they can be rewritten or renegotiated more frequently. Therefore, it is important to determine the dating as well as all other Information on the policy at each pricing, SPECIFY: Insured value; co-insurance level (percent); if policy is special multi-peril or separate fire and extended coverage by letter; dates current policy in force; basis for determin- ing actual value by letter; whether in connection with refinancing by letter, if F, explain; name of carrier writing insur- ance policy 74 Light bulbs DESCRIPTION: Incadescent lamp, long life, inside frosted, distributor to user, 60 watts/ 130 volts PRICING UNIT: Lowest price to apartment house op- erators per bulb, in cases of 120 light bulbs SPECIAL INSTRUCTIONS: If supplier typically gives volume dis- counts to apartment house operators, ob- tain discount price per bulb in lots of 120 SPECIFY: Manufacturers brand; average number of hours listed for life of bulb; if discount priced, regular price (if available) Snap tumbler light switch DESCRIPTION: Snap tumbler single pole light switch, bakelite toggle, excluding switch box Ampere rating : A. 10 amps, 120 volts B. 15 amps, 120 volts PRICING UNIT: Lowest price per unit to apartment house operators SPECIAL INSTRUCTIONS: If supplier typically gives volume dis- counts to apartment house operators, obtain price for typical lot and specify number in lot SPECIFY: If discount priced to apartment house owners, lot size, and if available, reg- ular price. Brand, stock number, am- pere rating by letter Wet mop head and handle DESCRIPTION: Heavy duty wet mop; head; and handle Mop head : 8 ply cotton fiber yarn Handle : A. Spring lever B. Screw type C. Clip type PRICING UNIT: Lowest price per unit to apartment house owners SPECIAL INSTRUCTIONS: If supplier typically gives volume dis- counts to apartment house owners, ob- tain price for typical lot and specify number in lot SPECIFY: For mop : Weight of mop; width of mop band in inches; length of strands in inches; price of mop head For handle : Type By letter; material; price of handle Lot size, if discount priced to apartment house owners; and if available, regular price 75 Floor wax DESCRIPTION: Non-skid, water emulsion, floor wax used in heavy traffic areas; 16 percent solids Materials : A. Acrylic B. Polymer C. Other (specify) PRICING UNIT: Lowest price per 5-gallon container to apartment house owners SPECIAL INSTRUCTIONS: If a supplier typically gives discounts to apartment house owners, obtain price per typical size lot and specify number of 5 gallon containers in lot If supplier typically sells a different size container, obtain price and specify size of container and size of lot usually sold SPECIFY: Brand, material by letter; type of mat- erial; if C; lot size; container size if other than 5 gallon; and if discount priced, regular price (if available) Interior latex paint DESCRIPTION: Professional or commercial grade latex interior house paint, matte or flat fin- ish, off-whiie color Exclude : color and semi-gloss finish BRAND: A. Nationally advertised B. Not nationally advertised QUALITY: C. First line or quality D. Second line or quality PRICING UNIT: Lowest price to apartment house opera- tors for a lot purchase of five one-gal- lon cans SPECIAL INSTRUCTIONS: If supplier typically gives volume dis- counts to apartment house operators, obtain discount price per can. If sup- plier typically sells in lots of 5 or more gallons to apartment house operators, obtain price for lot and specify number of gallon cans in lot SPECIFY: Brand; type of brand and quality by let- ter; if discount priced, regular price (if available) Push broom and handle DESCRIPTION: Heavy duty floor sweeping brush with hardwood block, 2-1/2 - 3 inch trim and screw type wooden handle, 3/4" diame- ter threaded end Male rial : (primary fiber of bristles) A. Rattan B. Tampico C. Horsehair D. Polypropylene E. Other (specify) Size of brush : F. 16" x 2-1/2" G. 18" x 2-1/2" H. 24" x 2-1/2" PRICING UNIT: Lowest price per unit to apartment house operators SPECIAL INSTRUCTIONS: If supplier typically gives volume dis- counts to apartment house operators, obtain price for typical lot and specify number in lot SPECIFY: Brand; brush material by letter, (if E, specify); size by letter; if supplier sells brush and handle separately price of brush and price of handle. If discount priced, lot size, and (If available) regu- lar price 76 Deterge nt DESCRIPTION: All purpose liquid concentrate In 5-gal- lon plastic container PRICING UNIT: Lowest price per 5-gallon container to apartment house operators SPECIAL INSTRUCTIONS: If supplier typically gives discounts to apartment house operators, obtain price per typiral size lot and .specify number of 5-gallon containers in lot. If supplier typically sells adifferent size container, obtain price and specify size of container and size of lot usually sold SPECIFY: Brand; lot size; container size (if other than 5 gallon); and if discount priced, regular price (if available) and lot size Bucket with wringer DESCRIPTION: Single galvanized bucket, heavy duty gear and rack type with wringer, 3-4 swivel casters, 16 quart capacity Type of wringer : A. Roller B. Squeeze PRICING UNIT: Lowest price per unit to apartment house operators SPECIAL INSTRUCTIONS: If supplier typically gives discounts to apartment house operators, obtain price for typical lot and specify number in lot SPECIFY: Brand; type of wringer by letter; if dis- count priced, regular price (if available) and lot size Washers DESCRIPTION: Non-metallic bibb washers typically used in sink faucets, assorted sizes (up to 1/4 inch thickness and 5/8 Inch diameter) Quantity : Box of 100 Material : A. Hard rubber B. Neoprene PRICING UNIT: Lowest price perunit to apartment house operators SPECIAL INSTRUCTIONS: If supplier typically gives volume dis- counts to apartment house operators, obtain price for typical lot and specify number in lot SPECIFY: Brand; material by letter; if discount priced, regular price (If available) and lot size 77 Refrigerator-freezer (9-11 cubic feet) DESCRIPTION: Conventional model; single door, sep- arate zero-degree freezer, full width; may have adjustable rollers Defrost : Manual Interior finish : Porcelain enamel, polystyrene, or plastic Exterior finish : White baked enamel or acyrlic Exclude : colored enamel or acyrlic CAPACITY: 9.0 to 11.0 cubic feet Freezer: approximately 35 to 55 pounds EQUIPMENT: Freezer compartment: two ice trays Refrigerator compartment: 2 or 4 shelves; 2 crispers or hydrators (or one full width); racks and/or shelves and butter keeper on refrigerator door; may have cheese keeper PRICING UNIT: The lowest price for the volume selling model to apartment house operators, regular customers, for the quantity most typically sold to them as replace- ments Exclude : installation and sales tax SPECIAL INSTRUCTIONS: Models priced should represent the vol- ume sellers purchased as replacements in studio and 1 bedroom apartment of building erected around 1960-62 SPECIFY: Brand, model number, capacity. Indi- cate the size of order that has to be purchased to obtain the price quoted Refrigerator- freezer (11.5-13 cubic feet) DESCRIPTION: Conventional model; single door, sep- arate zero-degree freezer, full width; may have adjustable rollers Defrost : Manual Interior finish : Porcelain enamel, polystyrene, or plastic Exterior finish : White baked enamel or acyrlic Exclude: colored enamel or acyrlic CAPACITY: 11.5 to 13. cubic feet Freezer: approximately 50 to 65 pounds EQUIPMENT: Freezer compartment: two ice trays Refrigerator compartment: 2 or 4 shelves; 2 crispers or hydrators (or one full width); racks and/or shelves and butter keeper on refrigerator door; may have cheese keeper PRICING UNIT: The lowest price for the volume selling model to apartment house operators, regular customers, for the quantity most typically sold to them as replace- ments Exclude : installation SPECIAL INSTRUCTIONS: Models priced should represent the vol- ume sellers purchased as replacements in studio and 1 bedroom apartment of building erected around 1960-62 SPECIFY: Brand, model number, capacity. Indi- cate the size of order that has to be purchased to obtain the price quoted 78 Air conditioner (6,000-8,999 BTU $| DESCRIPTION: Sleeve type, room size, thermostatic control For placement in bedroom Electrical Rating and Cooling Power : E. 115 voltage; 6,000-6. 999 BTU/hr. F. 115 voltage; 7,000-7, 999 BTU/hr. G. 115 voltage; 8.000-8, 999 BTU/hr. PRICING UNIT: The lowest price for the volume selling model to apartment house operators. regular customer, for the quantity most typically sold to them as replacement Exclude : installation SPECIAL INSTRUCTIONS: Price the volume selling model pur- chased as replacement in buildings erected around 1960-62 SPECIFY: Brand, model number, BTU's and volt- age by letter. Indicate the size of order that has to be purchased to obtain the price quoted Air conditioner (9,000-12,999 BTU's) DESCRIPTION: Sleeve type, room size, thermostatic control For placement in studio or living area of bedroom apartment ELECTRICAL RATING AND COOLING POWER : A. 115 or dual voltage (230-208); 9, 000-9, 999 BTU/hr. B. 115 or dual voltage (230-208); 10,000-10, 999 BTU/hr. C. 115 or dual voltage (230-208); 11.000-11, 999 BTU/hr. D. 230/208 voltage; 12.000-12. 999 BTU/hr. PRICING UNIT: The lowest price for the volume selling model to apartment house operators, regular customer, for the quantity most typically sold to them as replacement Exclude : installation and sales tax SPECIAL INSTRUCTIONS: Price the volume selling model pur- chased as replacement in buildings erected around 1960-62 SPECIFY: Brand, model number, BTU's and volt- age by letter. Indicate the size of order that has to be purchased to obtain the price quoted 79 Floor runner DESCRIPTION: Heavy duty floor runner, foul weather type Dimensions : 36 inch width by 108 inches in length Materials : A. Rubber B. Vinyl C. Nylon; fused piled or molded; ex- cluding nylon carpeting soft goods D. Other (specify) Type of runner : E. Roll goods F. Finished rug PRICING UNIT: Lowest price per yard or running foot for a 3 x 9 foot runner to apartment house operators SPECIAL INSTRUCTIONS: If supplier typically gives volume dis- counts to apartment house operators, obtain discount price per yard or run- ning foot SPECIFY: Brand, material by letter, if D, type of material, type of runner by letter, pric- ing unit, and if discount priced, regu- lar price (if available) Dishwasher DESCRIPTION: Conventional model; under counter; built-in; front load; automatic; standard size; may include power arm Finish : Baked acrylic enamel exterior; por- celain enamel or epoxy coated inter- ior Number of wash cycles : A. Single B. Two C. Three Exclude : models with more than 2 water spray levels (i.e., spray from bottom, from arm and from above), extra racks or baskets PRICING UNIT: The lowest price for the volume selling model to apartment house operators, regular customers, for the quantity most typically sold to them as replace- ment Exclude : installation and sales tax SPECIAL INSTRUCTIONS: The model priced should represent the volume seller purchased as replacement for studio and one bedroom apartments of buildings erected around 1960-62 SPECIFY: Brand, model number, number of wash cycles by letter. Indicate the size of order that has to be purchased to obtain the price quoted 80 Gat range (20 inch width) DESCRIPTION: Conventional model, single oven, four top burners, white vitreous porcelain enamel top, baked enamel or acrylic front and side panels, full porcelain enamel interior EQUIPMENT: Automatic top burner lighter(s) pilot light(s), plastic or metal handles or knobs, four standard top burners Oven : Single, fully insulated, thermostat (heat regulator), "full-width" under oven broiler with pan and grid Exclude : models with glass oven win- dows, automatic clock controlled oven, rotisseries, etc. Size : Stove : 20 inch width Oven : Standard PRICING UNIT: The lowest price for the volume selling model to apartment house operators, regular customers, for the quantity most typically sold to them as replace- ment Exclude : installation SPECIAL INSTRUCTIONS: The model priced should represent the volume seller purchased as replacement for studio and one bedroom apartments of buildings erected around 1960-62 SPECIFY: Brand, model number. Indicate the size of order that has to be purchased to ob- tain the price quoted Gas range (30-32 inch width) DESCRIPTION: Conventional model, single oven, four top burners, white vitreous porcelain enamel top, baked enamel or acrylic front and side panels, full porcelain enamel interior EQUIPMENT: Automatic top burner lighter(s) pilot light(s), plastic or metal handles or knobs, four standard top burners. May have utility compartment Oven : Single, fully insulated, thermostat (heat regulator), "full-width" under oven broiler with pan and grid Exclude : models with glass oven win- dows, automatic clock controlled oven, rotisseries, etc. Size: Stove : 30 to 32 inch width Oven : a. Standard b. Oversize PRICING UNIT: The lowest price for the volume selling model to apartment house operators, regular customers, for the quantity most typically sold to them as replace- ment Exclude : installation SPECIAL INSTRUCTIONS: The model priced should represent the volume seller purchased as replacement for studio and one bedroom apartments of buildings erected around 1960-62 SPECIFY: Brand, model number, and oven size by letter. Indicate the size of order that has to be purchased to obtain the price quoted 81 Regional Reports — continued No. 29 The Economics of Working and Living in New York City. July 1972 No. 30 Social, Economic, and Labor Force Charac- teristics of Residents in New York City's Low Income Aeas. September 1972 No. 31 Wages in New York City, April 1972. January 1973 No. 32 Professional, Administrative, and Tech- nical Pay in New York City, 1972. February 1973 No. 33 1973 Price Index of Ooerating Costs for Rent Stabilized Apartment Houses in New York City. July 1973* No. 34 New York City in Transition: Population, Jobs, Prices and Pav in a Decade of Chanqe. July 1973* No. 35 Wages and Benefits of New York City Municipal Government Workers, April 1972. December 1973 No. 36 Professional, Administrative, Technical and Clerical Pay in New York 1973. March 1974 No. 37 Wages and Benefits of Municipal Govern- ment Workers in Rochester, New York May 1973. April 1974 No. 38 1974 Price Index of Operating Costs for Rent Stabilized Apartment Houses in New York City. July 1974 No. 39 Some Dimensions of World Trade Impact on the New York Labor Market. July 1974 No. 40 A Reqional Profile of Labor Force, Employment, and Unemployment in 1973. September 1974 No. 41 Wages in New York City, April 1973. October 1974 No. 42 Waqes and Benefits of Municipal Govern- ment Workers in Jersey City, New Jersey, July 1973. November 1974 No. 43 Professional, Administrative, Technical and Clerical Pay in New York, 1974. March 1975 No. 44 Wages in New York City, April 1974. June 1975 No. 45 1975 Price Index of Operating Costs for Rent Stabilized Apartment Houses in New York City. July 1975* No. 46 A Socio-Economic Profile of Puerto Rican New Yorkers. July 1975 No. 47 Wages and Benefits of New York City Municipal Government Workers, April 1973 and April 1974. September 1975 No. 48 Professional, Administrative, Technical and Clerical Pay in New York 1975. March 1976 No. 49 Wages in New York City, May 1975. July 1976 No. 50 1976 Price Index of Operating Costs for Rent Stabilized Apartment Houses in New York City. July 1976 No. 51 Wages and Benefits of New York City Municipal Government Workers, May 1975. November 1976 No. 52 Professional, Administrative, Technical and Clerical Pay in New York, 1976. April 1977 No. 53 Wages In New York City, May 1976. April 1977 No. 54 1977 Price Index of Operating Costs for Rent Stabilized Apartment Houses in New York City. July 1977 No. 55 Professional, Administrative, Technical and Clerical Pay in New York, 1977. February 1978 No. 56 Wages in New York City, May 1977. March 1978 No. 57 Wages and Benefits of New York City Municipal Government Workers, May 1976. April- 1978 No. 58 1978 Price Index of Operating Costs for Rent Stabilized Apartment Houses in New York City. July 1978 No. 59 Wages in New York City, December 1978 No. 60 The Job Future in New York-Northeastern New Jersey--Occupat ional Projections to 1985. February 1979. No. 61 Wages and Benefits of New York City Municipal Government Workers, May 1977 February 1979. No. 62 Professional, Administrative, Technical and Clerical Pay in New York, 1978. May 1979. *0ut of print. May be referred to at the Bureau's New York Office. Aj'.S. DEPARTMENT OF LABOR \ ■ \ /;bureau of labor statistics , middle atlantic regional office 1515 broadway T h i rd class mail POSTAGE AND FEFS PAlO US DEPARTMENT OF LABOR NEW YORK, NEW YORK 10036 LAB 441