Inter-Departmental Correspondence

Board of Supervisors



June 13, 2011


June 21, 2011







Honorable Board of Supervisors


Supervisor Carole Groom and Supervisor Adrienne Tissier


Adopt a Resolution Ratifying the Memorandum of Understanding With The City and County of San Francisco Regarding the Application of the San Francisco Local Hiring Policy For Construction Located Within San Mateo County



Adopt a Resolution ratifying the Memorandum of Understanding with the City and County of San Francisco regarding the application of the San Francisco Local Hiring Policy for construction located within San Mateo County.



At its December 14, 2010, meeting the San Francisco Board of Supervisors passed an ordinance (the “SF Local Hiring Ordinance”), which established a local hiring policy applicable to San Francisco public works construction projects. That policy effectively requires contractors and their subcontractors performing public works projects for the City and County of San Francisco to have up to 50% of their work force composed of San Francisco residents. The reach of the policy extends to projects at sites located up to 70 miles beyond the jurisdictional limits of San Francisco – thereby covering the entirety of San Mateo County. As a result, the SF Local Hiring Ordinance had the potential to limit or even exclude San Mateo County residents from employment on construction projects located in San Mateo County.


In response, this Board passed a Resolution on December 21, 2010, urging the Mayor’s Office to veto the SF Local Hiring Ordinance, with a strong veto message reflecting concerns about the serious negative impacts to the region’s work force as well as the environment. Instead, the Mayor’s Office neither signed the ordinance nor vetoed it. This non-action allowed the ordinance to become effective as of January 23, 2011, as a matter of course.


Thereafter, the County entered into negotiations with San Francisco in hopes of reaching an agreement that would protect the interests of San Mateo County residents while preserving the goals of the SF Local Hiring Ordinance. The Memorandum of Understanding (“MOU”) presented to the Board for ratification is the result of those negotiations.



The MOU negotiated with San Francisco and now presented to the Board for ratification, effectively ends the distinction between San Mateo County residents and San Francisco residents for contractors seeking to comply with the policy for San Francisco public works projects performed in San Mateo County (e.g., Hetch-Hetchy or San Francisco Airport). That is, by providing for equal status of San Mateo County residents and residents of San Francisco on San Francisco projects within San Mateo County that are covered by the policy, the MOU effectively allows contractors to choose to satisfy the applicable mandatory San Francisco residency participation levels (which levels begin at 20% of the total number of workers on a project and rise to 50% over seven years) by hiring San Mateo county residents instead. Under the terms of the MOU, Contractors will be asked to strive to balance their compliance with San Francisco’s mandatory participation levels by hiring an equal number of San Mateo County residents and San Francisco residents. For example, in seven years when the policy is fully implemented and 50% of all project workers will have to meet the applicable residency requirements, contractors will be asked to meet those requirements by assembling that 50% using of an equal number of San Mateo County residents and San Francisco residents. The MOU also allows contractors to apply for waivers from the percentage requirements if they sponsor apprentices from identified local apprenticeship programs.


The proposed MOU was signed on June 2, 2011, by Board President Groom and San Francisco’s Mayor Lee. This resolution would ratify that execution. The City and County of San Francisco is scheduling its ratification of the MOU for its June 14, 2011, meeting.


County Counsel has reviewed and approved the MOU and the Resolution as to form.


Approval of this action will contribute to the Shared Vision 2025 outcome of a Collaborative Community by recognizing the regional nature of employment opportunities while allowing for increased employment opportunities for San Mateo County residents.



The execution of the MOU will not require the expenditure of any County funds. The execution of the MOU may, however, provide more opportunities for employment for San Mateo County residents.