EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: April 5, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Jaime M. Fontes, City Manager
BY: Rachel Horst, Housing and Economic Development Manager Amy Chen, Community & Economic Development Director
Patrick Heisinger, Assistant City Manager
SUBJECT: Adoption of the First Source Hiring Ordinance for City Funded Projects and Properties
Recommendation
1. Waive the Second Reading and adopt an Ordinance titled, “First Source Hiring for CityFunded Projects and Properties,” adding Chapter 5.11 to the East Palo Alto Municipal Code;
2. Direct the City Manager to draft and return with Administrative Guidelines; and
3. Direct the City Manager to make comprehensive updates to the City’s procurement processes and construction documents, as necessary, to ensure the First Source Hiring Ordinance is administered correctly.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 2: Enhance Economic Vitality
Priority No. 6: Create a Healthy and Safe Community
Executive Summary
On March 15, 20221, the City Council waived the first reading and introduced an ordinance requiring First Source Hiring for City-Funded Projects and Properties to be effective 30 days after the second reading (Attachment 1).
1 Please see link to City Council agenda item 8.1:
http://eastpaloalto.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=None&MeetingID=1804&MediaPosition=3250.173&ID=2139&Cs sClass=
Prior to introduction, the Council directed City staff to revise the proposed ordinance by changing the definition of “Applicable Projects and Value Threshold” from $100,000 to $250,000, as set forth in the following sections. Please see the highlighted bold and underlined text below, which has been incorporated into the ordinance (Attachment 1):
5.11.030 Scope and Goals.
A. For any public works contracts with the City that have a value of $250,000 or more, a subsidized project with a subsidy from the City of $250,000 or more, or a project sited on property leased from the City, there is hereby established the following goals for employment of East Palo Alto residents:
5.11.040 Definitions
"Subsidized project" means a development project for which a subsidy recipient received one or more subsidies with a total value to the City of $250,000 or more. "Subsidy recipient" means a person or entity that in any twelve-month period receives one or more subsidies from the City with a total value of $250,000 or more; and/or a person or entity that receives written notice that in exchange for the grant or subsidy to that person or entity, such person or entity must abide by the provisions of this chapter.
Additionally, the City Council discussed the need to develop employment opportunities for East Palo Alto residents, regardless of background or barriers faced. The City Council was interested in further refinements to the definition of disadvantaged worker and City staff will do so in the Administrative Guidelines.
The City Council also gave direction to staff to clarify certain issues in the Administrative Guidelines including the infrastructure improvements provided by the City on behalf of a development project that would constitute a subsidy.
The City Council unanimously introduced the attached ordinance.
Fiscal Impact
There is no fiscal impact with the items described in this staff report.
Public Notice
The public was provided notice via publication in the Palo Alto Daily News on March 4, 2022, and by making the agenda and report available on the City’s website and at the San Mateo Co.
Library located at 2415 University Avenue, East Palo Alto.
Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
Attachments
1. Ordinance