SEC. 82.4. COVERAGE.

(a) Threshold for Public Work and Improvement Projects. This Policy applies to contracts issued by the City with Prime Contractors for Public Works or Improvements estimated to cost in excess of the Threshold Amount set forth in Section 6.1 of the Administrative Code, as that amount may be amended from time to time.

(b) Threshold for Projects Constructed on Property Owned or Sold by the City.

(1) For purposes of this Chapter 82 only, this Policy applies to

(A) all construction projects on real property owned by the City; and

(B) all construction projects on City-owned real property located within the jurisdictional boundaries of the City that is sold to private parties, or their successor in interest, for the purpose of Housing Development, as defined in Section 101.1 of the Labor and Employment Code;

provided that, under either subsection 82.4(b)(1)(A) or subsection 82.4(b)(1)(B), the project is estimated to cost in excess of the Threshold Amount set forth in Section 6.1 of the Administrative Code, as that amount may be amended from time to time, including construction contracts that are issued by an entity or individual other than the City.

(2) The following construction projects are exempt from this subsection 82.4(b):

(A) tenant improvement projects estimated to cost less than $750,000 per building permit, where the project is undertaken and contracted for by the tenant;

(B) projects for special events where the special event is three or fewer consecutive or non-consecutive days within a two-week period;

(C) construction projects for which the construction work is fully funded and performed by a donor or donor’s agent as a gift-in-place donation, where the gift agreement does not require City funds to be used for the construction and where the gift agreement includes a requirement that workers be paid the same prevailing rate of wages as would be required for a Public Work project; and

(D) projects that as of July 19, 2014, the effective date of a prior amendment to the Policy, have a term sheet that has been endorsed by the Board of Supervisors and have findings of fiscal feasibility, to the extent that such projects agree to be bound by a legally enforceable document, enforceable by OEWD, committing the project to Local Hire mandatory participation level of 30% per trade. All grant agreements, leases, development agreements, and other contracts that the City enters into that allow for such non-exempt construction projects on property owned by the City must contain a provision that such construction shall comply with this Policy.

a legally enforceable document, enforceable by OEWD, committing the project to Local Hire mandatory participation level of 30% per trade. All grant agreements, leases, development agreements, and other contracts that the City enters into that allow for such non-exempt construction projects on property owned by the City must contain a provision that such construction shall comply with this Policy.

(c) Projects Constructed Outside the City. Covered Projects constructed outside the jurisdictional boundaries of the City and County of San Francisco shall be governed by the terms of this Policy, except that percentage requirements shall apply in proportion to the City’s actual cost after reimbursement from non-City sources compared to the total cost of the project, and, unless a reciprocity agreement exists, the “local” requirement shall include San Francisco residents, and workers residing within the San Francisco Public Utilities Commission service territory. If a reciprocity agreement with another local agency exists, the terms of that reciprocity agreement shall govern. Awarding Departments shall work with OEWD and regional local hiring programs to comply.

(d) Projects Utilizing Federal or State Funds.

(1) Segregation of Funds and Contract Awards. Where the application of this Policy would violate Federal or State law, or would be inconsistent with the terms or conditions of a grant or a contract with an agency of the United States or the State of California, the City department or agency receiving the grant or contract shall, where administratively feasible, segregate Federal or State funds from City funds, and/or segregate project administration and contracts, so as to maximize application of this Policy to City-funded construction work.

(2) Alternative Terms in Case of Conflict. Where the provisions of this Policy would be prohibited by Federal or State law, or where the application of this Policy would violate or be inconsistent with the terms or conditions of a grant or a contract with an agency of the United States or the State of California, and where segregation of funds pursuant to subsection 82.4 (d)(1) is not administratively feasible with regard to some or all of the project in question, then OEWD, in consultation with the Awarding Department, shall adapt requirements of this Policy into a set of contract provisions that advance the purposes of this Policy to the maximum extent feasible without conflicting with Federal or State law or with terms or conditions of the State or Federal grant or contract in question. The Awarding Department shall include this set of contract provisions in the contract for the Covered Project with regard to the project or portions of the project for which this Policy would conflict with Federal or State requirements.

icy to the maximum extent feasible without conflicting with Federal or State law or with terms or conditions of the State or Federal grant or contract in question. The Awarding Department shall include this set of contract provisions in the contract for the Covered Project with regard to the project or portions of the project for which this Policy would conflict with Federal or State requirements.

(e) Out-of-State Workers. Project Work Hours performed by residents of states other than California shall not be considered in calculation of the number of Project Work Hours to which the Local Hiring Requirements apply. Contractors and Subcontractors shall report to Awarding Departments and OEWD the number of Project Work Hours performed by residents of states other than California.

(Added by Ord. 84-17, File No. 170004, App. 3/30/2017, Eff. 4/29/2017, Retro. 3/25/2017; amended by Ord. 296-24, File No. 240985, App. 12/19/2024, Eff. 1/19/2025, Oper. 2/19/2025)

(Former Sec. 82.4 added by Ord. 148-99, File No. 990433, App. 6/2/99; repealed by Ord. 171-03. File No. 030422, App. 7/3/2003)