Laserfiche WebLink
File Number: 14-448 <br />perform a minimum of 30% of the hours worked, on a craft by craft basis. The contractors are <br />required to make good faith efforts to reach this goal through the utilization of the Unions' <br />hiring hall procedures. Although well-intentioned, empirical evidence shows that this clause <br />has not impacted local hiring in Berkeley in significant numbers. Out of 1,322 individuals <br />working on qualified projects, only 19 (1.4%) were Berkeley residents. Additionally, according <br />to staff research implementation and monitoring of this requirement created a substantial <br />burden on City of Berkeley staff. <br />The attached draft includes the 30% goal and a requirement that contractors make "good <br />faith" efforts to meet it. The agreement also requires contractors to hire one San Leandro <br />resident as a New Apprentice for the first $1 million of the bid amount. Thereafter, for every $5 <br />million of project monies, the contractor would be required to hire one additional New <br />Apprentice. The intent of the clause is to increase pathways for San Leandro residents into <br />the building trades although staff believes that it is likely to impact a relatively small number of <br />residents. <br />Funding: In Berkeley, to cover the expenses related to the implementation and management <br />of the local hiring program, each contractor must contribute ten cents per hour worked or paid <br />to each employee performing work on any project covered by the Agreement. These local hire <br />funds are deposited in a City account to be used for implementation and management of the <br />CWA. After almost three years, this mechanism yielded only $2,468.00. This requirement is <br />not recommended for San Leandro. San Leandro staff proposed that the Building Trades <br />provide sufficient funding to cover the cost of one Analyst I position in the City's Finance <br />Department; the Building Trades Council is not willing to include that requirement. Thus, <br />funding for implementation and oversight of an agreement (and/or any related policy) remains <br />unresolved. <br />Potential Challenges <br />Impact on Non -Union San Leandro Businesses and Consistency with the San Leandro Local <br />Inclusion Policy: Although the agreement does not prohibit non-union contractors from bidding <br />on projects, some stakeholders' feedback on the current version of the agreement opine that <br />there would be strong limitations on a non-union contractor's ability to use their own <br />employees, which creates an implicit barrier to non-union contractors bidding on such <br />projects. As presently written, a contractor could use no more than five of their own <br />employees and would have to pay into the union trust fund for pension and health benefits for <br />these employees. Staff has received conflicting feedback regarding the feasibility of this <br />provision. Some local San Leandro businesses and contractors have already signaled to City <br />staff that they would not bid on City projects, either as a prime or subcontractor, if an <br />agreement with such a requirement were adopted. Other local San Leandro businesses <br />encourage the City to adopt a CWA, with this requirement as written. <br />In 2014, the City Council adopted a Local Inclusion Policy that gives San Leandro businesses <br />an advantage in competing for City contracts. As noted above, a Community Workforce <br />Agreement would create challenges for non-union contractors, including some San Leandro <br />businesses. If San Leandro businesses opt not to bid on City projects due the existence of a <br />CWA, they would be unable to realize any of the benefits of the Local Inclusion Policy, <br />especially the bid preference that is permitted by ordinance. Some stakeholders have <br />expressed concern that the CWA could negate the benefits of the Local Inclusion Policy for <br />City of San Leandro Page 4 Printed on 2/3/2015 <br />