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File Number: 14-448 <br />non-union contractors. <br />Costs of Implementation and Oversight: Staff costs for implementation include monitoring <br />payroll and other records to oversee and track the impact of the local hiring goal, staffing a <br />Joint Administrative Committee, updating bid documents, and participating in the resolution of <br />disputes if any should arise. The City of Berkeley has devoted a significant share of one <br />full-time position in their Health, Housing, and Community Services Department for <br />implementation and monitoring of the program. Berkeley estimates the annual cost to be <br />$61,000. San Leandro does not have a comparable position on staff at this time and it is not <br />yet clear where the resources to support implementation and oversight would come from. <br />Impact on Project Costs: It is extremely difficult to estimate what, if any, impact a Community <br />Workforce Agreement would have on the cost of City construction projects. Based on its <br />experience so far, Berkeley staff theorized that the policy is most likely to impact the cost of <br />complex projects with multiple subcontractors, because those projects are more likely to have <br />significant administrative costs for contractors related to the implementation of the program. <br />Berkeley identified some instances in which contractors stated that they chose not to bid on <br />City projects due to the requirements of the CWA, which created a smaller pool of bidders that <br />Berkeley staff thinks caused an impact through higher bids. <br />Stakeholder Concerns Alternative Approaches <br />As noted above, several stakeholders, including local contractors and developers, the <br />Associated Builders and Contractors, Inc., and the San Leandro Chamber of Commerce <br />expressed concern about the potential adoption of a CWA. The most common concern is that <br />a CWA is inherently unfair to non-union contractors. In a debate that has taken place in <br />several other jurisdictions, stakeholders on opposing sides of this issue have made <br />contradictory claims regarding the ability of non-union contractors to participate in City <br />projects under a CWA. It is not possible for staff to definitively reconcile these positions. <br />A more fundamental concern expressed by other community stakeholders is that the City <br />would benefit from a discussion of goals related to public contracting prior to determining the <br />best tool to accomplish them. <br />In order to provide an alternative approach for City Council consideration, the Chamber of <br />Commerce submits a proposed addendum to the City's Local Inclusion Policy, which is <br />attached. The Open Hiring Policy Addendum establishes the framework for a local resident <br />training and hiring system, whether a contractor is a union contractor or a non-union <br />contractor. <br />Request for Council Direction <br />Staff requests that the City Council provide direction on next steps. <br />Consideration of Alternative Approaches: City staff met with the Building Trades Council, the <br />Chamber of Commerce, the Associated Building Contractors, private developers, and <br />individual businesses to receive feedback on the proposed policy. However, no consensus <br />has emerged and there is no indication that a compromise exists that would satisfy all parties. <br />City of San Leandro Page 5 Printed on 2/3/2015 <br />