AGENDA REPORT
TO: Honorable Mayor & City Council FROM: Councilmember Kevin Jenkins Council District 6
SUBJECT: AN ORDINANCE ADDING CHAPTER
15.80 TO THE OAKLAND MUNICIPAL CODE
TO ESTABLISH CONSTRUCTION
WORKFORCE RELATED REPORTING
REQUIREMENTS FOR DEVELOPMENTS
WITH AT LEAST 100 RESIDENTIAL UNITS OR
100,000 SQUARE FEET OF NEW FLOOR AREA;
AND MAKING APPROPRIATE CALIFORNIA
ENVIRONMENTAL QUALITY ACT FINDINGS
DATE: Thursday, June 13, 2024
RECOMMENDATION
The ordinance aims to establish construction workforce-related reporting requirements for developments with at least 100 residential units or 100,000 square feet of new floor area.
BACKGROUND / LEGISLATIVE HISTORY
On September 26, 2023, the City Council held a duly noticed public hearing to consider the foregoing recommendations of the CED Committee, all of which were passed on the first reading; and October 3, 2023, the City Council held a duly noticed public hearing to again consider the foregoing recommendations of the CED Committee, all of which were passed on the second reading and became final. The requirements would apply to newly constructed buildings with at least 100 residential units or 100,000 square feet of new non- residential floor area at the time of building permit application. This ordinance aims to ensure that new large- scale construction projects contribute positively to the local economy by creating job opportunities and promoting fair labor practices as well as addressing Oakland’s housing scarcity and income disparity in construction trades.
Reporting Requirements:
Developers must certify and provide detailed workforce information at the conclusion of each eligible project, including:
• Percentage of the workforce who are Oakland residents. • Number and percentage of apprentices employed.
• Trades whose craftspersons were paid area standard wages. • Workforce receiving health care benefits.
• Demographics of the workforce (ethnicity and gender). • Percentage of contractors certified under the City of Oakland Small Local Business Enterprise Program.
Additional requirements:
• Quarterly reports must be submitted during construction. • A final report is required upon project completion before any temporary or final certificate of occupancy is issued.
California Environmental Quality Act (CEQA): The City Council finds and determines that the adoption of this Ordinance is (1) not a Project under CEQA; (2) exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) (general rule, no significant effect on the environment); and (3) exempt from CEQA pursuant to CEQA Guidelines Section 15306 (information collection).
Goals and Intentions:
We anticipate thousands of new construction jobs coming to Oakland in the coming years, and we need to incentivize high construction workforce standards, including but not limited to utilizing a skilled construction workforce, providing high-quality health care benefits, investing in apprenticeship training, recruiting from the local workforce, and paying an area standard wage. This ordinance in particular will seek to:
• Address income disparity and promote workforce participation for communities of color. • Increase apprenticeship opportunities.
• Improve health care coverage for construction workers. • Incentivize the use of local contractors to promote economic equality
FISCAL IMPACT
No known fiscal impact beyond staff time.
ACTION REQUESTED OF THE CITY COUNCIL
Councilmembers Kevin Jenkins recommend that the City Council adopt this ordinance.
For questions regarding this report, please contact Dyana Delfin Polk, Policy Coordinator, Office of Councilmember Kevin Jenkins, District 6.
Respectfully submitted,
Kevin Jenkins
Councilmember Kevin Jenkins
District 6
Prepared by: Dyana Delfin Polk
Policy Coordinator, District 6