The local-hire stipulation would be phased in, starting with a mandate that 25 percent of the workers live in San Francisco in the first year, and creeping up 5 percent each year until the 50 percent mark is reached in six years.
The proposal would change a good-faith city hiring goal into a strict requirement. A recent report issued by the mayor's office and Workforce Development showed a local-hire rate of 20 percent on 29 publicly funded projects, falling far short of the 50 percent goal already on the books.
Long talked about but never enacted, the proposed mandate comes as unemployment in the construction trades in San Francisco nears 40 percent, said Supervisor John Avalos, chief sponsor of the legislation. With San Francisco expected to spend about $27 billion on public works projects over the next decade, "the city needs to leverage its funding position to ensure that our residents benefit from these investments," Avalos said.
The legislation would carve out exemptions for specialty trades, such as underwater welders, where the pool of qualified local applicants may be limited.
Contractors who exceed the goals will receive incentives while those who fail would face financial penalties.
Under the proposal, the city controller and the Mayor's Office of Economic Development would assess the financial benefits and disadvantages of the law in three years and, if necessary, recommend revisions.
The building trades unions have expressed concern about the proposed law and are expected to request further revisions.
Still unclear is whether Mayor Gavin Newsom will veto the legislation, if the board approves it. An economic analysis by his office shows that once the law is fully implemented, approximately 350 jobs would be created; however, it would cost the city an estimated $9.3 million more a year because of increased labor costs.
Amendments may be made Tuesday to address some of the concerns, which could delay a vote.
- Rachel Gordon
This week's news
Tuesday: The Board of Supervisors will once again discuss selecting an interim mayor at its 2 p.m. meeting at City Hall.
Wednesday: The Board of Supervisors budget committee will discuss at its 11 a.m. meeting the financial impacts of hosting the America's Cup.
By the numbers
$379.8 million The city's projected budget deficit for the next fiscal year.
10 percent Cuts the city's department heads must identify to help save more than $100 million.
5 Candidates who have filed papers to run for mayor in November.
Quote of the week
"In its fundamental form, we're talking about change, and there are always going to be some people who don't like it."
Mark Buell, president of the Recreation and Park Commission, talking about the agency's efforts to bring everything from coffee carts to skating rinks to public parks and plazas
E-mail the City Insider team at cityinsider@sfchronicle.com.
This article appeared on page C - 1 of the San Francisco Chronicle
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