REPORT TO COUNCIL
SUBJECT
Title
Value-based Policy Statement Encouraging Local Hiring (Information Only)
Report
BACKGROUND
At its February 7, 2014 Study/Budget Issues Workshop, City Council prioritized a study issue to examine opportunities to increase the hiring of local residents (defined at the time as those living in Santa Clara County) for private construction projects. The study was prompted by anecdotal information indicating that some developers might be making heavy use of low paid out-of-state workers, and/or housing out-of-state workers at unfinished business sites.
On November 11, 2014, staff presented Report to Council 14-0818, and recommended the implementation of several actions to encourage local hiring by developers and contractors for local development projects. Council concluded it wanted to explore a more aggressive local hiring program, and directed staff to review programs in other cities and return with a proposed plan for preparing an ordinance and/or program for local hiring requirements on large private and public construction projects. Council asked staff to consider requiring submission of a "local hiring plan" that incudes job projections and outreach plans, requiring contractors and subcontractors on projects to be licensed per state law, and encouraging use of local apprenticeship programs.
On May 19, 2015, staff returned to Council with its recommendations regarding a local hiring program. Following a public hearing, Council directed staff to:
1) Hire an Administrative Analyst for the purpose of monitoring certified payroll submissions related to ensure compliance with state-mandated prevailing wage requirements on both public construction and public maintenance projects, and to add language to existing public project contract specifications (and to those private projects enjoying a public subsidy) to require along with certified payroll submissions documentation regarding the actual number and percent of local workers and apprentices employed;
2) Bring back to Council an ordinance to ensure that large-scale private developments hire, employ and provide on-the-job training to apprentices; and
3) Adopt a value-based policy statement to formally encourage local developers and contractors on public and private projects to make outreach efforts for local hiring, to use state-certified local apprenticeship or jobs training programs, and to pay prevailing wages.
The intent of this report is to share with City Council staff's completion of task number 3 above. The value-based policy statement depicted by Attachment 1 will be shared with developers and contractors doing business with the City, and will be incorporated into Council's Policy Manual as policy 5.1.5 in the Socio-Economic Chapter. Staff will notify Council as progress is made on items 1 and 2 above.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website. Copies of this report were also distributed to members of the public (both the development community and local hiring advocates) who received notification of previous reports to Council on this issue.
Staff
Prepared by: Robert A. Walker, Assistant City Manager
Reviewed by: Joan Borger, City Attorney
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Council Policy 5.1.5 Utilization of Local Workforce in Construction Projects