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Port reports $73.4M to LBEs last fiscal year; OEWD updates local-hire implementation
Summary
Deputy Director Elaine Forbes reported $73.4 million in contract spending to LBEs and year-end LBE subcontractor payments of $12.9 million (18% LBE participation, slightly below the port's 20% goal). OEWD described the mandatory local-hire ordinance (Admin Code 6.22) and CityBuild training pipeline, and said active port projects are meeting or on track to meet local-hire requirements using off-ramps and apprentice sponsorships where needed.
Port staff presented the fiscal-year contracting report and the city's local-hire program update.
Deputy Director Elaine Forbes said Port contracting for FY2012-13 directed $73.4 million to city-certified LBEs and $12.9 million to LBE subcontractors, yielding 18% LBE participation for the year-end snapshot (2% below the Port Commission's 20% policy goal). She said micro-LBE set-asides performed strongly and that staff is working to improve performance in real-estate and maintenance-dredging contracts.
Pat Mulligan of the Office of Economic and Workforce Development (OEWD) outlined the mandatory local-hire ordinance (San Francisco Administrative Code 6.22) requirements: a 20% San Francisco resident-hours-by-trade trigger for covered public-works contracts (posted threshold $400,000) with a phased increase to 50% over seven years, plus apprentice-hour targets. Mulligan described off-ramps (apprentice sponsorship, off-site credit) and said conditional waivers have been used to meet requirements on active port projects. He noted CityBuild and other pipeline programs provide training and pre-apprenticeship pathways with industry-recognized certifications to supply local labor.
Commissioners asked about the ordinance's phased percentages and whether liquidated damages had been assessed. Mulligan said the ordinance includes third- and sixth-year legislative reviews, that off-ramps have been used to avoid penalties to date, and that the city is analyzing pipeline capacity to meet future increments.
