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HomeMy WebLinkAbouteconomic and demographic proposal, bozeman, mt, xicon economics Proposal Professional Services to conduct Economic & Demographic Analysis Services in support of a Comprehensive Plan Update Land Use Projection DUE: January 31, 2017 Demographic Analysis Xicon. We grow economies. & Submitted to: Robin Crough, MPA City of Bozeman 121 North Rouse Avenue, Suite 202 Bozeman, Montana 59771 United States of America Submitted by: Herbert M Barber, Jr, PhD, PhD Xicon Economics Post Office Box 61478 Savannah, Georgia 31420 United States of America +1 912 536 4182 Economics Research Statistics Economic 2 Date: January 10, 2017 To: Robin Crough, MPA, City Clerk, Bozeman, Montana Re: RFP, Professional Services to Conduct Economic & Demographic Analysis Services in support of a Comprehensive Plan Update, Land Use Projection On behalf of Xicon Economics, please allow this document to serve as our proposal in response to the noted bid solicitation. In developing our proposal, we have made every attempt to comply with mandates established in the solicitation. Any omissions are unintentional oversights. To this end, we are experts in the areas of Economics, Research, and Statistics. Our senior experts average over 30 years of experience, and all have earned research doctorates in engineering, economics, and operations research. As such, the work we produce is scientifically rigorous and econometrically objective, and most often, without equal. In brief, We grow economies. We have conducted over 2,500 studies and provided over 3,500 advisories for clients in both the private and public sectors. We have approximately 20 senior level PhDs, hold 7 patents, speak 10 languages, written 16 books, published hundreds of scientific papers in referred journals, and worked in numerous countries around the world. In so doing, we have fully completed every contract and never exceeded a budget or schedule. We appreciate your considering our proposal. I can be contacted at +1 912 536 4182. Kind Regards, Herbert M Barber, Jr, PhD, PhD Principal Economist Acknowledgements 1. This proposal is made without collusion with any other person or entity submitting a proposal pursuit to this RFP. 2. Xicon Econmics, nor its sub-consultants, discriminate based on race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity, or disability. Xicon Economics and its sub-consultants also recognizes that any eventual contract will contain a provision prohibiting discrimination as described above and that this prohibition on discrimination shall apply to the hiring and treatment of our employees and sub-consultants. Xicon Economics Post Office Box 61478 Savannah, Georgia 31420 United States of America www.xiconeconomics.com +1 912 536 4182 3 Basic Definitions, in Lay Terms 1. Descriptive Statistics – analyses that attempt to describe data through commonly accepted methods, such as those associated with measures of central tendency and the like. As such, descriptive statistics do not rely of mathematical probability theory as a means of explaining data or events. 2. Inferential Statistics – analyses that use inferences, or generalizability, such that future events may be explained or forecasted. Inferential statistics rely on mathematical probability theory. 3. Construct – a non-operationalized variable that serves as a concept or idea that cannot be measured in and of itself. 4. Variable – a construct that has been operationalized into a meaningful phenomenon that can be measured quantitatively or qualitatively as a means of rendering decisions. 5. Correlation – a measure expressing the relationship between variables. Correlation ranges between -1.0 and +1.0, with zero demonstrating that there exists no relationship between variables. 6. Standard Deviation – a measure noting distances from the mean. Under a normal curve, +/-1SD encompasses approximately 68.2% of the population under study, +/-2SD encompasses 95.4%, and +/- 3SD encompasses 99.7%. 7. Standardization – the process of norming data or scores; researchers often use z-scores to standardize data. 8. Significance – an expression attempting to describe whether a relationship or phenomenon is due to chance, most often expressed using alpha levels, such as .1, .05, or .01. An alpha level of .01 means that there exists a 1% probability that an effect, or difference, is due to chance. 9. Statistical Effect – a measure of the differences between two or more variables. Effect can be direct or indirect. 10. Effect Size – a measure of the strength of a relationship or phenomenon; most often expressed as a coefficient thorough Hedges’s g, Cohen’s d, and many other techniques. 11. Practical Effect – a statistic to measure the statistical effect of a relationship of phenomenon against practical application or importance of said statistical effect. 12. Coefficient of Determination – a means of describing mathematically how well data fit a specific curve. 13. Explained Variance – a statistic describing the variance in a dependent variable explained by an independent variable. Explained variance can run parallel with coefficient of determination. 14. Analysis of Variance (ANOVA) – a statistic used to analyze differences in means between variables, compared against levels of significance, e.g., p-values. 15. Linear Regression – a method for describing and forecasting data associated with variables through mathematical models. There are several types of regression, such as simple regression, quadratic regression, multiple regression, and logistic regression. 16. Time Series – data sets having seen or unseen tendencies of seasonal, trend, and irregular characteristics. 17. Time Series Forecasting – a statistical method for projecting series variables having seasonal, trend, and irregular characteristics by coupling smoothing techniques, such as exponential smoothing or moving average smoothing, with various forms of regression modeling (No universally accepted test for significance has been established in the scientific literature). 18. Causality – an occurrence between two of more variables that allows a variable to be explained by another variable. In lay terms, causality is considered to exist during cause-effect occurrences. 19. Structural Equation Modeling – a multivariate analysis technique for testing and analyzing causal relationships. 20. Granger Causality – a method of determining whether a time series model can forecast another time series model. 21. Econometrics – the branch of economics that applies advanced mathematics and statistics to phenomenon in economics such that empirical analyses can be rendered. 22. Internal Consistency – a measure of scale reliability. 23. Cronbach’s Alpha – a measure of internal consistency within an instrument. 4 24. Deterministic Modelling – mathematical techniques containing no elements of randomness. 25. Probabilistic Modelling – mathematical techniques containing elements of randomness. 26. Generalizability – the ability of variables within a sample to mathematically describe, or infer, phenomenon or relationships across a population. 27. Validity – the extent to which a construct, or set of constructs, is operationalized. 28. Reliability – the mathematical extent to which a measure captures its intended data. 29. Real Gross Domestic Product – macroeconomic measure of economic output, adjusted for inflation. 30. Nominal Gross Domestic Product – macroeconomic measure of economic output, without adjustments for inflation. 31. F-statistic – a test for a null hypothesis, often used for determining whether models have been fitted to data correctly. 32. F-value – interpreted differently, but generally represents the ratio of between-groups variance and within-groups variance. 33. Latent Variables – those operationalized constructs existing but hidden, or not readily observed, in data that often are measured through observed variables. 5 Table of Contents Section Page Project Summary ………………………………………………………………………………………………………… 6 Company Description & Capabilities ………………………………………………………………………………………………………… 7 Project Team ………………………………………………………………………………………………………… 10 References ………………………………………………………………………………………………………… 12 Outline of the Study ………………………………………………………………………………………………………… 14 Fee Structure ………………………………………………………………………………………………………… 32 Appendix ………………………………………………………………………………………………………… 33 6 Project Summary Xicon Economics proposes to provide economic and demographic analyses for the City of Bozeman in an effort of preparing city officials and community leaders to render appropriate data-driven decisions. The study will be conducted by Dr. Herbert Barber, principal economist with Xicon Economics, with no subcontracting. Dr. Barber is an engineer and economist and has conducted hundreds of studies such as the study addressed herein, as well as countless studies substantially more complex. With all studies, however, Dr. Barber addresses the constructs associated with each study with rigor and objectivity, coupled with advanced statistical and econometric analysis in an effort of helping clients make appropriate decisions as it relates to growing their economies. The study will be completed in approximately 4 months, presuming some support from City and community leaders. Following completion of the study, a presentation will be developed and conducted as a means of helping city officials and community leaders understand our findings and recommendations, followed by a question and answer period. To this end, initially we will develop a Task Force to serve as content experts to Xicon Economics as the study is conducted; additionally, the Task Force will serve as liaisons to the community. Following appropriate introductory meetings, requirements for the study will be reviewed to ensure that all constructs were captured in the proposal; and changes will be made as appropriate. Next, we will conduct the socio-economic phase of the study, analyzing, modeling, and forecasting variables such as population and demographic characteristics. Next, we will conduct a comprehensive economic analysis regarding numerous variables as it relates to the economy of Bozeman. Among many other variables, for example, we will analyze, model, and forecast economic output generated in each industry sector, such as that output generated through the manufacturing sector, healthcare sector, or retail sector. After synthesizing these findings with those associated the socio-economic phase, we will assess the feasibility of fully developing current and future land use plans associated with growth management in and around the City of Bozeman as it relates to findings of the economic and demographic analyses. With that, we will then develop the narrative to augment and complement the analyses, modeling, forecasting, and findings associated with the study, with such being presented in formal presentation and report formats. Refer below to review the project in detail. 7 Company Description & Capabilities Historical Overview of Xicon Economics General Overview Xicon Economics combines intellectual rigor, objectivity, and real world experience to solve complex issues in industry and infrastructure. Our areas of expertise include economics, research, and statistics; and all work we conduct centers on increasing economic output in cities, states, and countries. In so doing, our work involves measurably increasing revenues, profits, GDP, jobs, personal incomes, tax generation, and similar outputs that contribute to quality of life. Basic information regarding Xicon Economics is noted below: Principal Economist: Dr. Herbert Barber Legal Name: Xicon, Inc. d/b/a Xicon Economics, est. 2010 Legal Structure: S-Corporation, Fed. ID 27-5026939 Services: Economics, Research, Statistics Markets we Serve Economic output is a derivative of multiple endogenous and exogenous variables, not the least of which are those variables associated with infrastructure and industry. At Xicon Economics, we work with entities in the private and public sectors in various economies to ensure that sustainable growth is the rule, rather than the exception such that financial and economic output can continually increase. In our efforts to increase financial and economic output, we capitalize upon our expertise in the following primary sectors. Government Most government and quasi-government systems are struggling to meet their financial obligations. At Xicon, we help governments thrive by helping the private sector thrive. In so doing, we work with various government entities that serve to promote economic development of private sector entities, knowing that government revenue is a derivative of an economically viable private sector. Infrastructure The physical state of infrastructure around the world is in a state of decay. This holds true in many countries, including the United States. Worse, however, economic output is inhibited when such decays exist within an economy’s infrastructure, and while most policy makers promote infrastructure spending as a means of stimulating economic output, such is often not the case. For example, the planning, design, and construction of a new commuter rail may in fact serve as an economic stimulus in one economy while serving as nothing more than superfluous spending in another economy. At Xicon Economics we remove these ambiguities. Before spending occurs on infrastructure, we determine decisively whether such spending will indeed serve as an economic stimulus, and increase economic output, or whether such spending will serve only as wasteful spending. In so doing, we work with entities in the private and public sectors to leverage existing resources to create and maintain viably sustainable infrastructure. Industry Many advanced economies have allowed manufacturing and industry to give way to knowledge-driven professions; this especially holds true in the United States. Unfortunately, outsourcing manufacturing and industry to less developed countries has had a devastating economic effect on the United States. Manufacturing and industry jobs are, in fact, spiraling downward rapidly, seemingly unknown to most policy makers. Such cannot continue in these economies, not if these economies intend to remain economically viable. 8 Based upon years of research we have conducted, our experts recognize that countries such as the United States can no longer serve as a knowledge-driven society while negating output from vocationally oriented entities in manufacturing and industry. Such continuance will only serve as the demise of a country, economically, socially, and politically. As such, our experts render quantitatively driven recommendations to clients such that our economies can regain an economic stronghold, and thrive. Services we Provide The work we conduct at Xicon Economics centers on increasing financial and economic output in individual companies and entire economies. In so doing, our work involves measurably increasing revenue, profits, GDP, jobs, personal incomes, tax generation, and similar outputs that contribute to quality of life. Quite simply, we grow economies. As an example of some recent work we conducted, we delivered a comprehensive economic feasibility and research study along with our findings and recommendations, on a highly controversial one-billion-dollar port deepening project that will allow post-Panamax trade; that project required a minimum investment of $812 million in public monies for engineering and construction of the infrastructure project over six (6) years. Over 15 years, we projected the return on that investment to yield $7.8 billion in direct business revenues in the private sector, not to mention, thousands of jobs, above-average personal incomes, and billions of dollars in tax revenues; which were also calculated and noted in the study. At Xicon Economics, we have, in fact, conducted over 2,500 similar studies. Examples of the type of work we conduct include the following: Expertise of our Experts We bring intellectual rigor, objectivity, and real world experience together to solve complex engineering, economic, and financial problems in an effort of increasing economic output. Whether calculating the economic and financial feasibility of constructing a new manufacturing plant, analyzing policy changes in various regulatory agencies, raising capital for a rail project, mining smart grid data to develop real options valuations, or developing advanced energy algorithms, Xicon Economics stands ready to make a difference. More simply, we leverage our backgrounds in the hard sciences to grow economies. In fact, every decision we render centers around economic and financial output, regardless of the client with which we are working. Our expertise falls broadly into one of three areas though in most cases our approach is holistic, covering all three areas. Economics We have extensive experience in infrastructure economics, energy economics, construction economics, and manufacturing economics. Subsequently, economic analysis is fundamental to all work we do at Xicon. A sample of our expertise in economics includes the following: Econometrics Economic Impact Analysis Economic Forecasting Economic Risk Modeling Uncertainty Analysis Labor Demand Forecasting Decision Modeling Catastrophic Modeling Financial Forecasting Effect and Causality Revenue/Tax Forecasting Policy Analysis Supply Modeling Demand Modeling Research We employ the scientific method to solve complex issues for the clients we serve. Accordingly, our experts are seasoned researchers who are well published in referred scientific and professional journals, regardless of their discipline. To this end, however, the research we conduct for our clients is not merely academic; it is practical; it is Technical & Engineering Studies Complex Cost-Benefit Studies Economic Impact Studies Strategic Planning Studies Financial Studies Econometric Studies Feasibility Studies Survey Research Risk Engineering Studies Market Demand Studies Industry Sector Analysis Analysis, Modeling & Forecasting 9 applied but employs the scientific method. Thus, our research makes a difference. Our research centers on the government, infrastructure, and industry sectors as it relates to increasing financial and economic output. The research expertise we most often provide includes: Research Definition Validity & Reliability Time Series Forecasting Argument Development Sampling & Measurement Inferential Statistics Construct Development Practical & Statistical Effect Knowledge Creation Research Methodology Causal Modeling Research Dissemination Statistics We apply advanced quantitative techniques to solve complex technical, financial, and economic challenges in the markets we serve, ultimately to grow economies. Our work is, in fact, unparalleled, whether the relationships we are investigating are descriptive, exploratory, or causal. A few of the services we provide in this area includes: Inferential Statistics Advanced Algorithms Mathematical Optimization Statistical Effect Financial Engineering Stochastic Modeling Practical Effect Statistical Analysis Simulation Modeling Causal Modeling Decision Science Real Options Analysis Time Series Forecasting Reliability Analysis Neural Networks Risk Engineering Relevant Recent/Current Projects of Xicon Economics (conducted by Dr. Herbert Barber) 1. Demographic & Economic Analysis, Modeling & Forecasting, Coffee County, United States 2. Demographic & Economic Analysis, Modeling & Forecasting, Pierce County, United States 3. Land Use Strategic Planning Studies with Market Analyses, Multiple Developments, United States 4. Demographic& Economic Analysis, Modeling, Impact, & Forecasting, Savannah MSA, United States 5. Fiscal Analysis, Modeling, & Forecasting, Vaden Group, United States 6. Demographic & Multi-Sector Economic Analysis for Maritime Industry, Atlantic Coast, United States 7. Demographic, Market, Economic & Financial Modeling, and Forecasting Feasibility Study for Housing Development, Greystone Arbor, United States 8. Comprehensive Demographic, Economic & Housing Study, City of Grandview, United States 9. Demographic, Market, Financial & Economic Impact Analysis, Modeling, and Forecasting Feasibility Study for Relocation of Downtown and a Large-scale Government, Commercial & Housing Project, Hahira Gateway Community, City of Hahira, United States 10. Demographic, Market & Economic Impact Analysis for Multiple Land Use Developments (Residential, Commercial, Mixed-Use, & Industrial), San Marcos, United States 11. Financial Modeling, and Forecasting Feasibility Study for a Housing Development, Iron Gate, United States 12. Market, Technical, Financial & Economic Impact Study for Maritime Industry, Jacksonville, United States 13. Econometric Analysis and Planning of Infrastructure across South Florida, United States 14. Infrastructure: Engineering Economic Analysis across State of Louisiana, United States 15. Demographic, Market & Financial Forecasting Study for Land Use Planning, United States 16. Economic Impact of the Construction & Manufacturing Sectors, Multiple Studies, United States Ability of Xicon Economics to Manage this Project Xicon Economics has conducted more than 2,500 studies and 3,500 advisories using advanced economics, research, and statistics as a means of helping clients render technical, financial, and economic decisions as they relate to industry and infrastructure. We can confidently state that our techniques regarding demographic and economic analysis will be far more advanced than any other company responding to this RFP. In fact, we have aided numerous corporations and government entities in re-analyzing data after they first hired consultants who simply had no understanding of advanced statistical analysis, modeling, and forecasting, yet claimed they did. Can Xicon Economics manage this project? Refer to the appendix to see what our clients say about our abilities. 10 Project Team Our Senior Experts At Xicon Economics, we are experts in the areas of Economics, Research, and Statistics. Our senior experts average over 30 years of experience, and all have earned research doctorates (PhD) in engineering, economics, and operations research from regionally accredited Research-Intensive universities. Our senior experts include the following:  Dr. Baabak Ashuri, Infrastructure Economics Dr. Pat Naidoo, PE, Energy Economics  Dr. Dr. Herbert Barber, Infrastructure Economics Dr. Saty Satyamuri, PE, Infrastructure Economics  Dr. Peter Bruggink, Educational Economics Dr. Marek Sipko, Infrastructure Economics  Dr. Jackie Eastman, Marketing Research Dr. Bhuvanesh Singh, PE, Infrastructure Economics  Dr. Islam El-adaway, Infrastructure Economics Dr. Paul Sinprasertkool, Transportation Economics  Dr. Ronald Harley, PE, Energy Economics Dr. Dina Vyortkina, Educational Economics  Dr. Youakim Kalaani, PE, Energy Economics Dr. Phillip Waldrop, Manufacturing Economics  Dr. George Zhen, Infrastructure Economics Dr. Stephen Mattingly, PE, Transportation Economics No sub-consultants will be used for completion of this study. However, we reserve the right to utilize any of Xicon’s experts noted above should such benefit this study and be approved by the client, though such is not anticipated. In such a case, the client will not incur additional costs. Economist completing this Project Herbert M Barber, Jr, PhD, PhD Principal Economist, Infrastructure Economics Primary Areas of Expertise Expertise as it Relates specifically to this Study Infrastructure Economics Advanced Measurement & Statistical Analysis Macro/Micro Economics Advanced Statistical & Practical Effect; Causality Advanced Inferential Statistics Advanced Time Series Modeling & Forecasting Advanced Econometrics Advanced Multiple Regression & Forecasting Economic Effect & Causality Complex Financial & Economic Modeling Economic Impact Modeling Construction & Land Use Modeling Career Highlights of Dr. Herbert Barber Author, Advisor, Engineer, Economist & Researcher  Years of Experience: 30  Years of Formal Education: 34 (BS, MS, MS, PhD, PhD)  Years of Experience using Advanced Statistical Analysis: 30  Years of Experience in Engineering, Infrastructure & Construction Sectors: 30  Years of Experience analyzing Large/Mega Projects and Initiatives: 30  Selected Most Valuable Player at Fluor Corporation, largest EPC firm in United States  Total Completed Volume of Technical, Economic, & Financial Analysis: USD100 Billion+  Only economist or analyst to statistically model and predict the 2008 collapse of the US economy using non- traditional infrastructure variables—in 2006 11 Herbert M Barber, Jr, PhD, PhD serves as the chief executive officer of Xicon Economics. He is a respected author, advisor, engineer, economist, and researcher. Over the last 30 years, Dr. Barber has provided advisory and consulting in engineering economic systems as it relates to the implementation of large economic endeavors in industry and infrastructure across multiple countries. He is a seasoned scientific researcher with a keen understanding regarding the statistical and econometric effect and causality large financial and economic endeavors have on companies, governments, and economies around the world in both developing and developed economies. Prior to assuming his role with Xicon Economics, Dr. Barber served in leadership positions with Seminole Southern, Fluor Corporation, and Jacobs Engineering. Over the years, Dr. Barber has developed a reputation for solving highly controversial problems in industry and infrastructure as it relates to increasing financial and economic output. As a recent client noted, “Dr. Barber does not care so much what people think as much as what he can prove econometrically and statistically.” In fact, Dr. Barber was the only economist or analyst in the world to accurately mathematically model and predict the 2008 economic collapse using non-traditional economic variables—in 2006. Dr. Barber earned five academic degrees in engineering and economics that resulted in a bachelor’s degree, two master’s degrees, and two research doctorates from Georgia Southern University, Florida State University, and Mississippi State University. In lay terms, the research for his first master’s degree and his first doctorate focused on the performance of large industrial investments, while the research for his second doctorate focused on the economic impact, including statistical effect and causality, that large infrastructure investments have on economic output, including GDP, jobs, incomes, and tax generation. Recent Work utilizing more Rigorous Methodologies, Statistical & Econometric Analyses (Scopes included simultaneous analyses across both the public and private sectors) Principal Economist: Dr. Herbert Barber Xicon Economics has conducted numerous scientific studies and investigations over the years, many of which used methodologies and analyses similar to those required for this RFP, and many of which used methodologies and analyses substantially more statistically and econometrically rigorous than this RFP. A few of those studies and investigations requiring more sophisticated statistical techniques are offered by title only below:  Financial Analysis & Economic Impact of Harbor Deepening of the Port of Jacksonville, United States  Economic Impact Assessment of Infrastructure Investment on Economic Output, United States  Economic Impact Analysis of the Manufacturing, Construction, Retail, and Healthcare Sectors, United States  Analysis, Modelling, and Forecasting of US Construction Cost Indices, United States  Economic Impact of the Construction Industry in the SEUS, United States  Estimation of the Potential Economic Impact of a Cruise Industry on Savannah MSA, United States  Economic Impact Analysis of Georgia’s International Ports, United States  Economic Effect of Energy Supply & Demand on Economic Output across SS Africa, South Africa  Feasibility Study: Technical, Financial & Economic Impact Analysis, Modelling & Forecasting of a PPP Waste- to-Energy Facilities in the Kingdom, Swaziland  Feasibility Study: Technical, Financial & Economic Analysis of a PPP Commuter Rail System, Mozambique  Economic Impact of the Manufacturing Sector in the Southeastern United States, United States  Economic Impact Analysis of the Construction Industry, United States  Economic Impact of the Local Manufacturing Sector, Bacon County, United States  Econometric Analysis of the World’s Least Developed Nations, South Africa  Economic Effect of Electricity Generation and Consumption on Economies of Scale  Feasibility Study, Waste to Energy, Kingdom of Swaziland  Feasibility Study, Commuter Rail System, Republic of Mozambique  Econometric Analysis for Privatization of the Energy Sector, Nigeria 12 References Xicon Economics works with entities in both the private and public sectors, as well as for entities operating as quasi- public organizations and those operating under Public Private Partnerships (PPP). However, on most studies we conduct, the private and public sectors are both involved. As such, we offer three primary references for consideration, two public and one private, along with a brief description of each study below. Xicon Economics conducted a demographic and economic study for Piece County Industrial Development Authority, with comparative analyses across three other counties. The primary purpose of the study was to determine which industry sectors were serving as economic drivers in Pierce County such that these industry sectors could be leverage as stronger catalyst for driving economic output, e.g. GDP, jobs, incomes, tax generation, as a means of economic growth. After developing a comprehensive analysis of the population data, statistical models (mathematical equations) were developed for all four counties such that population forecasts could be made at 5 year increments; such analyses were conducted using regression and time series analysis. Following population forecasting, per capita income, racial distribution, and educational attainment were analyzed, with models and forecasts being developed for per capita incomes. Xicon Economics then analyzed each industry sector in each of the four counties, including wage averages, wage totals, output (GDP), job growth, inflation, and tax generation using descriptive and inferential statistical analyses. From these analyses, the top ten industry sectors were established, followed by Xicon Economics then calculating the statistical effect each industry sector had on total output (GDP) using an F-test under ANOVA compared against significant alpha levels (p-values), followed by determining practical effect using Cohen’s d; with each sector having significant effects being determined to be economic drivers. Mr. Matt Carter Principal Economist: Dr. Herbert Barber Executive Director Dates of Study: Aug 2013-Nov 2013 Industrial Development & Building Authority Population under Study: 30,000 per county (4) ida@piercecountyga.org Xicon Employees conducting Study: 1 PhD +1 912 670 0016 13 Xicon Economics conducted a highly complex demographic and economic study for the Jacksonville Port Authority, with the purpose being to determine the financial feasibility and economic impact a $1 billion investment involving deepening of the St Johns River by five feet in an effort of capturing post-Panamax container shipping from the Asian market. During the study, we developed numerous complex econometric models coupled against various alpha levels to forecast capture of the Asian market and the impact of such capture to the state of Florida and United States through 2025. Along with some 3,000 jobs that would be created, and taxes, we forecasted returns of $7.8 billion. Xicon Economics conducted a demographic and economic study for Coffee County Industrial Development Authority, with comparative analyses across three other counties. The primary purpose of the study was to determine which industry sectors were serving as economic drivers in Coffee County such that these industry sectors could be leverage as stronger catalyst for driving economic output, e.g. GDP, jobs, incomes, tax generation, as a means of economic growth. After developing a comprehensive analysis of the population data, statistical models (mathematical equations) were developed for all four counties such that population forecasts could be made at 5 year increments; such analyses were conducted using regression and time series analysis. Following population forecasting, per capita income, racial distribution, and educational attainment were analyzed, with models and forecasts being developed for per capita incomes. Xicon Economics then analyzed each industry sector in each of the four counties, including wage averages, wage totals, output (GDP), job growth, inflation, and tax generation using descriptive and inferential statistical analyses. From these analyses, the top ten industry sectors were established, followed by Xicon Economics then calculating the statistical effect each industry sector had on total output (GDP) using an F-test under ANOVA compared against significant alpha levels (p-values), followed by determining practical effect using Cohen’s d; with each sector having significant effects being determined to be economic drivers. Mr. Todd Mullis Principal Economist: Dr. Herbert Barber Former Sr Vice President/Board Member Dates of Study: May 2013-July 2013 First National Bank/Development Authority Population under Study: 35,000 per county (4) todd.mullis@yahoo.com Xicon Employees conducting Study: 1 PhD +1 912 331 3300 Mr. Lynn Fine Principal Economist: Dr. Herbert Barber Vice President Dates of Study: January 2015-March 2015 Formerly Davin, Inc. Population under Study: 21 million lwfine1932@yahoo.com Xicon Employees conducting Study: 1 PhD +1 407 618 3137 14 Outline of the Study Introduction The City of Bozeman has experienced relatively steady growth in recent years, as has Gallatin County. In fact, as a percentage of state population, the population of Gallatin County is outpacing population growth for the State of Montana. In 1970, the population of Gallatin County as a percentage of the population of Montana was only 4.7 percent. However, that same percentage was 9.8 percent in 2015 (SD1969-2015=1.6), meaning in lay terms that an increasing percentage of Montanans are opting to live in Gallatin County. Modeling the population of Gallatin County, we expect the county population to increase to nearly 109,000 residents in 2025, and 116,000 in 2030, using Pop=1466.9x+24909, R2=.964 (p<.01). Refer to the table and figure below to review the model. Regression Statistics Multiple R 0.981975 R Square 0.964275 Adj R Square 0.963481 Std Error 3914.262 Observations 47 ANOVA df SS MS F Sig F Regression 1 18609590396 18609590396 1214.611 3.33E-34 Residual 45 689464991.6 15321444.26 Total 46 19299055387 Coeffs Std Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 24908.99 1160.376189 21.4663048 2.82E-25 22571.87 27246.11 22571.87 27246.11 t 1466.93 42.091268 34.8512656 3.33E-34 1382.158 1551.71 1382.158 1551.71 Population Modeling, Gallatin County Populations, 1969-2017 Source: BEA, 2017 0.0 2.0 4.0 6.0 8.0 10.0 12.0 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 196919711973197519771979198119831985198719891991199319951997199920012003200520072009201120132015Gallatin County Montana %State 15 Population growth such as that experienced by Gallatin County mandates that the City of Bozeman, as well as Gallatin County and surrounding areas, take appropriate steps to manage such growth to ensure proper use of available resources; hence several plans the City has developed. To this end, the findings generated through this study has the potential to not only be incorporated into one or two current or future studies, but several. For example, the socio- economic e.g. population growth and demographic characteristics, are necessary components to most community and economically-oriented studies as population growth drives various variables, such as land demand and housing demand, as well as economic output, e.g. GDP and incomes, from all industry sectors, e.g. healthcare and retail. For the economic and demographic study discussed herein, we will begin the study by developing a Task Force, if such is not in place. The Task Force will serve as content experts to Xicon Economics, and as importantly, as community liaisons to the greater Bozeman area. The Task Force will be expected to attend substantive meetings with Xicon Economics, working with Xicon Economics in a collaborative manner. Following completion of all introductory-type meetings and presentations, the intended approach that will be used during completion of this study will be presented; again, in collaboration with the Task Force—and others as necessary. That said, the actual tasks deriving our intended approach are structed in a manner appropriate to efficient completion of the study objectives described in the RFP. However, some scope changes can occur without changes in the overall fee. We will initially conduct the socio-economic phase of the study, with that phase consisting of us analyzing, modeling, and forecasting, as appropriate, the population and demographic characteristics of the city, county, and state; such information becomes necessary later in the study when we begin reviewing other variables, such as land use; and economic output among the various industry sectors. As we complete the socio-economic phase of the study, we will begin completing the economic phase. In so doing, we will analyze, model, and forecast numerous variables associated with the economic structure of the City of Bozeman, Gallatin County and the State of Montana. This phase will be comprehensive in that we will analyze variables associated with building permits and land use to variables associated with economic output, e.g. GDP and jobs, of each industry sector, e.g. manufacturing and healthcare, while also investigating unemployment, real (un)employment, inflation, and other variables, as well as the impact these variables have on economic output across industry sectors. The culminating analysis will yield the industry sectors in the city, county, and state that econometrically serve as catalysts for economic growth, i.e. economic drivers. Following, we will synthesis our findings across the variables under study such that a qualitative understanding can begin being formed among City officials. All such analysis and synthesis is imperative to sound economic development, so those responsible for economic development in the region can leverage the industry sectors actually driving economic growth while simultaneously improving the remaining industry sectors. Next, we will assess recent and current plans for managing population and economic growth in the city—and county (as the city and county are interdependent). More so than with any other phase of the study, this phase will be conducted under collaboration with the Task Force, remembering that the primary objectives of the Task Force are to serve as content experts and community liaisons. During this phase, we will review each previously developed land- use planning to ensure feasibility with respect to findings (growth patterns, etc.) generated through the demographic and economic study presented herein. Finally, we will synthesize all findings relative to the project holistically, with the project culminating into a draft narrative that will be presented to multiple stakeholders. From comments and suggestions established through these presentations, the final study will be developed, published, and presented to the City in the manner preferred by the city officials. 16 Scope of Work Xicon Economics will perform the following specific tasks, coupled with other tasks as necessary: Task 1 Establish a Task Force, if not already established, of governmental and community leaders who will serve as content experts for this investigation; and in so doing, offer essential insight to Xicon Economics as the study is conducted and serve as community liaisons. Task 2 Analyze, model, and forecast the socio-economic trends of Bozeman/Gallatin County relative to the socio-economic trends of the state of Montana and the United States. a. Analyze, model, and forecast population data for Bozeman/Gallatin County, Montana, and United States at 5-year increments using simple regression, multiple regression, parabolic regression, time series analysis with single independent variables, time series analysis with multiple independent variables, or other statistical technique as appropriate for data fit. Compare all analyses and modeling as appropriate against commonly established measures of statistical significance and practical significance, such as alpha levels calculated through ANOVA (p-values), F-tests, and Cohen’s d. b. Analyze the racial distribution of Bozeman/Gallatin County, Montana, and United States using descriptive statistics, such as measures of central tendency. c. Analyze the educational attainment of Bozeman/Gallatin County, Montana, and United States using descriptive statistics, such as measures of central tendency. d. Analyze, model, and forecast personal income and/or per capita income, and/or household incomes for Bozeman/Gallatin County, Montana, and United States suing regression analysis leveraged against coefficients of determination (R2) and other measures of statistical fit. e. Qualitatively assess the relationships between the socio-economic trends (noted above) of Bozeman/Gallatin County and the socio-economic trends of state of Montana and the United States. Graphical Examples of Task 2 Historical Population, Jacksonville MSA compared to State of Florida, 1970-2014 Secondary Units: Percentage (%) 9.16 8.86 8.59 8.32 8.27 8.09 8.03 7.93 7.84 7.62 7.57 7.41 7.34 7.29 7.28 7.29 7.31 7.29 7.28 7.16 7.15 7.15 7.16 7.11 7.05 7.02 7.09 7.09 7.07 7.04 7.02 7.02 7.02 7.02 7.02 7.00 7.06 7.11 7.14 7.16 7.16 7.13 7.13 7.13 7.02 - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 197019751980198519901995200020052010Jacksonville MSA Population as Precentage of State Population Jacksonville MSA State of Florida 17 Total Population vs Working Population (%), Jacksonville MSA Secondary Units: % Projected Population, Jacksonville MSA 42.0 43.0 44.0 45.0 46.0 47.0 48.0 49.0 50.0 51.0 52.0 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013Population % Wkg Linear (% Wkg) 1,517,296 1,611,946 1,706,595 1,250,000 1,300,000 1,350,000 1,400,000 1,450,000 1,500,000 1,550,000 1,600,000 1,650,000 1,700,000 1,750,000 20152016201720182019202020212022202320242025202620272028202920306.7% 6.2% 5.9% 18 Recent County Populations, 2011-2012 Racial Distribution by County, 2010 Ref: US Census, 2010; 2013 Estimated Educational Attainment, Pierce County (%) Ref: US Census 2005, 2010; 2013 18,597 18,726 36,195 30,305 18,587 18,844 35,821 30,322 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Brantley Pierce Ware Wayne C: 94.4% C: 86.9% C: 64.9% C: 72.3% A: 2.9%A: 8.9% A: 29.6% A: 19.7% O: 2.7%O: 4.2%O: 5.5%O: 8.0%0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Brantley Pierce Ware Wayne -0.05% +0.63% -1.03% +0.06% C: Caucasian A: Africa American O: Other 30.2% 59.7% 6.8% 2.3% 0.7% 0.3% 0 10 20 30 40 50 60 70 Less than High School High School (Diploma, Certificate, AS, AA) Bachelor's Degree (BS, BA) Master's Degree (MS, MA, MEd) Professional Degree (JD, MD, DMin) Doctorate (PhD, EdD, EngD) Georgia Wayne Ware Pierce Brantley 19 Figure 9 Graphical Representation of Unemployment, Coffee, 2013 Note: Lighter shades represent higher unemployment; darker shades represent lower unemployment. Unemployment, Bacon County, 1990-2013 County Model R2 2013 2014 2015 Appling Y=611.56X+361.58 .992 27,270 27,882 28,493 Coffee Y=623.55X+466.36 .986 27,903 28,526 29,150 Tift Y=702.80X-97.91 .993 30,825 31,528 32,230 Ware Y=626.98X+463.99 .990 28,051 28,678 29,305 Mean - - 28,512 29,154 29,795 Table 2 Projected Economic Output per Capita, Coffee County 20 Task 3 Analyze, model, and forecast the economic trends of the residential, commercial, and industrial sectors of Bozeman/Gallatin County relative to the socio-economic trends of the state of Montana and United States. a. In collaboration with the Task Force noted above, establish the specific constructs that will be investigated during this study, especially those constructs that may fall outside, or be in addition to, what we typically analyze for this type work. b. After operationalizing the constructs into variables, collect appropriate data regarding the economic variables associated with the residential, commercial, and industry sector. c. Analyze, model, and forecast economic variables in the residential sector using descriptive and inferential statistics as necessary. Variables will consist of, but not be limited to, the following: i. Building permits ii. Land values iii. Housing costs and/or values iv. Socio-economic variables, such as household income and per capita income per home type v. Housing stock verses housing need based on prior population forecasting vi. Market variables as defined by the Task Force b. Analyze, model, and forecast economic variables in the commercial and industry sectors (manufacturing, construction, retail, wholesale, healthcare, education, etc), such as the following: i. Inflation, using measures of central tendency ii. Unemployment, using measures of central tendency; and time series forecasting to forecast unemployment at 1 year increments iii. Real (un)employment, using measures of central tendency iv. Interaction of unemployment, real (un)employment, and inflation, using measures of central tendency v. Commercial and industry sectors by employment, using measures of central tendency and correlation using the Pearson Product-Moment method vi. Commercial and industry sectors by economic output (wages and/or GDP), using measures of central tendency and correlation using the Pearson Product-Moment method vii. Statistical effect of employment from each commercial and industry sector on total employment using F-tests via ANOVA; and practical effect using Cohen’s d viii. Practical effect of economic output (wages and/or GDP) from each commercial and industry sector on total economic output of all commercial and industry sectors, using F-tests via ANOVA; and practical effect using Cohen’s d ix. Through the above analyses, determine which commercial and industry sectors serve as economic drivers (economic catalysts) for Bozeman/Gallatin County Graphical Examples of Task 3 Building Permits Issued, Lowndes 96 105 115 112 104 0 20 40 60 80 100 120 140 2000200120022003200420052006200720082009201020112012201320142015 21 0 10 20 30 40 50 60 70 80 90 100 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 Year 2012 Year 2013 Year 2014 Year 2015 Year 2016 Year 2017 Units Sold CMA(12)Units Projected Mean Home Cost (USD) Projected New Housing Needs, 2017 Polinomial Model y = -5.3452x5 + 260.03x4 -4360.7x3 + 27987x2 -41920x + 1501620 50,000 100,000 150,000 200,000 250,000 300,000 2000200120022003200420052006200720082009201020112012201320142015Projected 2017 Projections January 69 July 84 February 76 August 80 March 68 September 71 April 70 October 71 May 75 November 69 June 75 December 64 Total: 872 Overall Model Fit: Significant, F(1, 54)=31.0; p<.001 22 0 20 40 60 80 100 120 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Year 2015 Year 2016 Year 2017 Units Year Projected Area Population New Households Projected New Homes Needed Projected New Rental Units Needed Projected Vacancy Cumulative New Homes Needed 2015 2,700 41 24 13 4 284 2016 2,779 40 23 13 4 324 2017 2,859 41 24 13 4 365 2018 2,938 40 23 13 4 405 2019 3,018 41 24 13 4 446 2020 3,097 40 23 13 4 486 Forecasted Housing Needs, Forest Heights Area Projected Housing Occupancy Notes Dependent Variable: Occupancy Independent Variable: Economic Output Explained Variance: 40.8%; r=.639 Degrees of Freedom (df): 1,12 Statistical Effect (ANOVA): Sig @ .05 alpha level Practical Effect (Cohen’s d): large, d >.8 Projected 23 24 Unemployment Rate by Workforce Investment Area Projected Unemployment Rate, Hilton Head Island, South Carolina 25 Industry Sector Employment Distribution, Wayne County Industry Employment Distribution, County compared to State 21.6 20.5 19.6 18.1 15.5 14.6 13.9 7.3 6.3 5.6 44.4 48.4 20.3 35.8 19.0 14.1 35.8 2.223.7 23.9 0.0 10.0 20.0 30.0 40.0 50.0 Retail Healthcare Wholesale Manufacturing Transportation ConstructionHotel/Food Agric/Forestry Public Admin Prof/Tech County Emp/1000 Capita State Emp/1000 Capita 26 Interaction of Total County Wages vs US Inflation, All Industry Sectors Units: Primary Axis: Wages, USD; Secondary Axis: US Inflation Rate, % Relationships across Industry Sectors 3.4 2.8 1.6 2.3 2.7 3.4 3.2 2.8 H 3.8 L -0.4 1.6 3.2 2.1 -1 -0.5 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 - 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 350,000,000 400,000,000 450,000,000 500,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Brantley Pierce Ware Wayne US Inflation Poly. (Brantley) Poly. (Pierce) Poly. (Ware) Poly. (Wayne) 27 Sector GDP as % of MSA Total GDP, Savannah MSA Manufacturing GDP vs GDP as % of MSA Total, Savannah MSA Primary Axis: Savannah MSA Manufacturing GDP Total GDP, Savannah MSA GDP Units: USD Millions, current 18.2% 21.2% 0.0 5.0 10.0 15.0 20.0 25.0 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2001200220032004200520062007200820092010201120122013201420159,2619,4909,90510,74911,67312,74713,25613,17313,14413,44513,74214,33314,93015,80917,030 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Construction Education/Healthcare Manufacturing Retail SAV MSA Total Poly. (SAV MSA Total) 28 Projected Combined Financial and Economic Revenue Units: USD 26,169,25925,850,83925,912,45528,036,45031,568,26234,697,12633,454,87032,885,09332,807,57335,335,34839,612,56443,355,34641,633,45040,764,24940,514,62843,477,18539,446,63839,203,79239,525,89943,002,66148,676,13053,771,58052,097,84251,448,59651,556,20155,766,28462,773,81368,977,72066,490,44265,341,06065,170,49970,174,40150,932,07550,586,13850,971,25555,422,78462,700,46069,227,79767,039,54366,172,61266,280,88471,662,22780,633,65788,567,94685,341,59683,835,54183,587,19789,974,6240 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 Without Deepening Moderate Penetration Aggressive Penetration Poly. (Without Deepening)Poly. (Moderate Penetration)Poly. (Aggressive Penetration) 29 Figure 15 Mean Annual Income, Private Sector vs Public Sector Sector df1, df2 F Sig. F  R2 Agriculture 1, 11 .073 .791 - - Construction 1, 11 7.828 .017 .05 .416 Manufacturing 1, 11 .490 .498 - - Wholesale Trade 1, 11 18.407 .001 .01 .626 Retail Trade 1, 11 2.287 .159 - - Finance 1, 11 8.493 .014 .05 .436 Professional 1, 11 1.106 .316 - - Healthcare 1,11 .068 .800 - - Table 11 Statistical Effect of Sector Income on Total Income Projected Practical Effect of Manufacturing Sector GDP on Total State GDP d=2.34 X1 X2 d > .8, large effect 30 Task 4 Qualitatively assess the relationships between the economic trends (noted above) of the residential, commercial, and industrial sectors of the Bozeman/Gallatin County area relative to the socio-economic trends (noted above) of state of Montana and the United States (Analysis will be conducted through a comprehensive narrative (write-up)). Task 5 Qualitatively analyze and access the conditions necessary to ensure 1) Chapter 3 of the Community Plan (n.d.) and 2) additional subarea plan, such as but not limited to the Downtown Bozeman Improvement Plan (December 14, 2009), are economically viable (Analysis will be conducted through a comprehensive narrative (write-up)). Regarding Task 5, proposal evaluators are reminded that the principal economist for this project, Dr. Herbert Barber, is not only an economist, but a civil engineer who practiced civil engineering for several years along with conducting economic analysis. As such, Dr. Barber has a keen understanding of the planning, engineering, and construction processes associated with the Community Plan and other plans regarding the infrastructure, housing, commercial, industrial, and other sectors. Task 6 Develop the narrative (write-up) for the study, along with recommendations. Also, develop the presentation, and deliver findings in the manner preferred by the Task Force and city officials such that definitive decisions can be rendered in due course. Meetings Xicon Economics will attend and/or lead meetings and presentations as necessary to conduct the study. In general, the required meetings and presentations are anticipated to be the following: 1. Introductory meeting with the Planning Board to discuss and describe the project methodology and application of outcomes 2. Presentation of initial findings to the Economic Development Council (appointed citizen board) 3. Presentation of initial findings to the Planning Board 4. Presentation of draft report to the City Commission 5. Presentation of final report to the Planning Board 6. Presentation of final report to the City Commission Xicon Economics meets with clients as necessary to ensure client satisfaction, without reservation, in person. Schedule Units: Months Note: Meetings with stakeholders will be held as necessary. Task 1 2 3 4 1 Designation of Task Force (if not established) 2 Socio-Economic Analysis 3 Economic Analysis 4 Qualitative Assessment/Synthesis of Economic Analysis 5 Qualitative Analysis/Assessment of Planning Objectives 6 Narrative, Presentation & Deliveries (as necessary) - Final Study Rework/Delivery 31 Support required from City Officials Xicon Economics requests that representatives from the City be available to address questions and review our work in a timely manner as necessary. We further request that data and other resources be made available to us, if such are available. Task Force & Public Engagement Xicon Economics requests that a Task Force be developed the first week of the study, if such is not already in place. The Task Force will consist of city officials and community leaders, preferably approximately 10-15 persons, leaning more heavily toward community leaders; with the purpose of the Task Force being to serve as 1) content experts as it relates to providing valuable insight into the constructs being examined during the study, and 2) liaisons to the community. The Task Force is expected to attend and participate in every substantive meeting led by Xicon Economics. Further, and equally as important, public engagement is necessary for appropriate execution and acceptance of the findings derived through this study. Such will occur through the Task Force and open forum meetings and presentations to the community at large, with appropriate public notice advertising and other marketing activities. Deliverables Xicon Economics will provide the following deliverables in the study within 4 months: 1. Economic & Demographic Study a. Executive Summary b. Introduction c. Methodology d. Socio-Economic Analysis and Findings e. Economic Analysis and Findings f. Planning Analysis and Findings g. Assessments/Syntheses and Findings h. Summary i. Recommendations 2. Presentations (as necessary) a. Delivery b. Answers to Questions c. Study Corrections 3. Project Delivery a. Electronic Copy b. Printed Color Copies All analyses are contingent upon the reasonable availability of sound data, economic and otherwise. 32 Fee Structure Refer to the sealed envelope. 33 Appendix Ability of Dr. Herbert Barber to Deliver work as Promised We offer the following comments from recent public sector clients: Dr. Barber applied mathematical models to forecast profit and loss, economic impact and growth, including GDP, jobs, personal income, and tax revenue to a highly contentious multi‐billion-dollar public sector project. His work is highly complex and very important in our decision to implement what is a huge financial undertaking. Chairman, Infrastructure Project Task Force CEO, Multi‐Billion Dollar Logistics Company Dr. Barber’s study was very difficult to understand because the subject is so mathematically complicated for most of us, but in the end, he made strong recommendations that were based solely on his analyses. Board Member Dr. Barber’s work focuses on mathematical modeling, on the numbers. He does not care so much what people think as much as what he can prove economically and statistically – unlike our last consultant. Co-Chair, Task Force CEO, Multi‐Billion Dollar Real Estate Company He has solved multiple very complicated undertakings, and in so doing, he did not just provide us the positive aspects of our decisions but also the ramifications. Member, Mayor’s Team Lead Counsel Based on Xicon’s study, including several readings of Dr. Barber’s analyses, findings, and recommendations of a very complex subject, I see tremendous value in his work, especially in terms of his data analyses. We need to readily accept his work. Board Member Senior Scientific Researcher As a fellow PhD level researcher, Dr. Barber knows how to address controversial topics with rigorous analyses, stating the positive and the negative, allowing us to ponder many tough questions we had not considered as a committee. Harbor Deepening Task Force Director of Research Dr. Barber’s analyses and forecasting for capturing post-Panamax shipping was more comprehensive than what we have seen in the past; his work will have lasting impressions on US trade. Chair, Harbor Deepening Project Dr. Barber’s job growth and other economic impact projections were much more realistic than what our previous consultant provided. His work focused on statistical analysis that he could prove, not pie in the sky. Director of Engineering Dr. Barber recognizes the complexity of our project as well as the strengths and weaknesses of applying econometric analyses to complex policy issues. We need to take his findings and recommendations – as well as his cited limitations – very seriously, as this is a huge undertaking that will impact the US for generations. Economic Researcher Dr. Barber’s team used time series analyses with multiple independent variables to analyze, model, and forecast technical data in twenty-two markets, while coupling these forecasts with financial and economic variables. Their findings proved more robust than any prior analyses we had ever seen. Chief Financial Officer Transportation Company Dr. Barber knows how to address controversial topics with rigorous analyses, stating the positive and the negative, allowing us to ponder many tough questions we had not considered as a committee. Senior Researcher I will give you this. You are ultimately very definitive with your opinions and recommendations—and they are based on robust analyses. How could anyone argue against you? Executive Director, Economic Development We need to take his recommendations very seriously, whether we like his findings and recommendations or not. Executive Director, Economic Development Xicon took on a very complex topic that would have economic implications across the United States for generations. 34 Ability of Dr. Herbert Barber to complete Projects as Scheduled and Budgeted Xicon Economics has never not completed a project in full, on schedule, and within budget. We offer the following comments from recent projects: I enjoyed working with Dr. Barber and his team. Their work was completed with the utmost quality… and on time. Chair Person, Project Committee He took ownership of the project and ran it as if it was his money he was spending. Member, Project Initiative They provided a down-to-earth approach to our project. Co-Chair, Task Force Xicon is focused on the special needs of its clients. Our team found them to be responsive to the financial constraints of our organization as they conducted their study. Member, Project Task Force We really enjoyed working with Xicon. They were diligent in making sure our project was completed on budget. Councilman We really enjoyed working with the team at Xicon. They did a great job! Chairman, Task Force The only problem we experienced was when we asked them to deliver the study two weeks later than scheduled, and that was purely a political move on our part. Chairman, Task Force Dr. Barber’s team completed the project under budget and ahead of schedule. Project Director