First Source Hiring Program Update
March 2, 2026
City Council
First Source Hiring Program
2 Adopted in 2004, the program supports local construction hiring and development through financial incentives. Details provided in Municipal Code, Chapter 14.80.
• Mandatory: City-funded private projects must hire labor from Pasadena.
• Voluntary: Projects over $50,000 are eligible for a construction tax rebate of 50% of the salary and benefits paid to each Pasadena resident, up to 75% of the total construction tax paid. For example, a project valued at $15 million would pay a construction tax of $288,000 (construction tax is 1.92% of valuation) and could receive a rebate of up to $216,000. To meet their max rebate, they must pay $432,000 in wages to Pasadena residents.
Other City Projects: The Privileges and Immunities Clause of the United States Constitution imposes restraints on local hire mandates; however, voluntary goals are allowed.
Program Notification
3 Developers and contractors learn about the program through email, the City’s website, as condition the loan agreement, social media, FWDB and marketing materials. Developers receiving City funding are notified by the Housing Department of the local hire requirement. Contractors submitting permits over $50k receive an alert email
.
Sample Email:
How is payroll tracked?
4 Econ Dev staff uses LCP tracker, a cloud-based compliance platform, for payroll compliance tracking. It is considered a leader in security and an industry standard for tracking prevailing wage requirements. LCP can also be used to track certified payroll, construction site compliance, and workforce reporting.
• $150 billion in projects across 33 cities
• Users include public agencies and municipalities, private companies, prime contractors, and subcontractors
• Data tracked by Pasadena: contractor names, employee
names, number of workers, addresses, phone numbers, hours worked, percentage and amount of wages paid.
• EconDev is proficient in LCP tracker, and another staff member has construction experience.
Active First Source Hiring Projects
5 # Developer Description Address Type/Progress
1 Huntington Health
Medical Office
Building
Approx. 100,285 square
feet, four-story medical
office building
786 S Fair Oaks • Voluntary
• 29 Pasadena employees
• $592,115 in Pasadena wages
• 8% to Pasadena workers
2 Adobe
Communities/
Centennial Place
144-unit single room
occupancy complex for
permanent supportive
housing
235 E. Holly • Mandatory
• 39 Pasadena employees
• $454,264 wages to Pasadena
• 18.39 % to Pasadena workers
3 Door of Hope Single-family residential
property for homeless
persons and families
724 N.
Marengo
• Mandatory
• 4 Pasadena employees
• $20,278.60
• 14.84 % to Pasadena workers
4 Heritage Housing
Partners – Walnut
Crossing
58-unit homeownership
condominium complex with
low-income and moderate-
income households
1880 Walnut • Mandatory
• 4 Pasadena employees
• $352,059 in wages
• 58% to Pasadena worker
5 Heritage Housing
Partners
10 units of housing for
transitional age youth
2318 E Foothill • Mandatory - 15% goal
• Construction hasn’t started
6 Hope, Inc. Affordable housing for
persons with intellectual
and/or developmental
disabilities.
940 N Summit
& 760
Worcester
• Mandatory - 15% goal
• Construction hasn’t started
Example of Completed Projects
6 Developer Description Address Type/Progress
USC Keck Medical
Office Building
Project
103,000 sq. ft. medical office
building with four stories and
three levels of underground
parking, featuring an ambulatory
surgery, specialty clinics,
oncology and a rooftop garden.
590 S Fair Oaks • Voluntary
• 17 Pasadena employees
• $1,023,575 in Pasadena wages
• 7.88 % to Pasadena workers
Olivewood North Private development, residential
units.
111 N Madison • Voluntary
• 6 Pasadena employees
• $280,458 in Pasadena wages
• 21.03 % to Pasadena workers
Olivewood South Private development, senior
housing.
88 N Oakland
Ave
• Voluntary
• 7 Pasadena employees
• $126,530.83 in Pasadena
wages
• 10.69 % to Pasadena workers
Heritage Square
South (Bridge
Housing)
70 permanent supportive housing
apartments
710 N Fair Oaks • Mandatory
• 90 Pasadena employees
• $1,038,644 in Pasadena wages
• 19.47% to Pasadena workers
PasCL Lo c a l La b o r
7 The Library Project is not subject to Pasadena’s Local Hire Municipal Code because the US Constitution imposes restraints on local hire mandates; however, the framework and guidelines of the
Pasadena’s Local Hire Program can be useful when tracking local hiring:
• Local Hire (Tier 1): Chapter 14.80 defines “local” as individuals who live within Pasadena’s city limits. Pasadena residents will be tracked separately.
• Foothill Workforce Development Board (FWDB) (Tier 2): This workforce development center serves job seekers in 5 cities - Arcadia, Duarte, Sierra Madre, South Pasadena, and Pasadena, and can support the contractor with finding local workers and PUSD zip codes.
• LCP Tracker: This project can use the City’s payroll tracking system to report all payroll including workers names, craft, total hours workers, and wages paid.
Recommended Next Steps
8 Monitoring Local Hire: Using existing infrastructure (LCP tracker), Econ Dev Staff, and FWDB along with an experienced outside consultant.
Marketing/Outreach: Increase the promotion of the program.
Maintain Accountability: Ensure contractors consistently track payroll.
EconDev dashboard: Include in the EconDev dashboard, data on local hire related to the First Source Hiring Program.
Increase coordination with partners: Improve the collaboration between EconDev and FWDB to better support job seekers.
Increase voluntary participation: Increase number of developers, and local workers hired.
Update guidelines and agreements: Updating program language.
Information will be posted on our webpage. Mandatory
agreements will be included with loan agreement.
Sample Report
9 Economic Impact Plan
• PCL’s Pasadena First Commitment
> Economic Impact Contractual Goal:10%
▪ Local Workforce
▪ Local Trade Partners
▪ Local Suppliers
> $16M Local Economic Investment in Total
▪ Phase 1A and Phase 1 – Limited Impact Opportunities
▪ Phase 2 – Ample Impact Opportunities
10 Economic Impact Plan
11 Phase 1: Local Economic Impact Contractual Goal
Phase 1 Total Contract Value 7,865,764
Phase 1 Local Workforce $256,304 3.61%
Phase 1 Local Trade Partners $220,625 2.80%
Phase 1 Local Supplies &
Materials $63,973 0.81%
Total Phase 1 Local Spend $540,903 6.88%
10%
Contractual Goal
Construction Cost/Spend
Local
Workforce
Local
Suppliers
and
Materials
Procured
Local
Trade
Partners
Economic Impact Plan
10% - 15%
Aspirational Goal
Hours/Headcount
Local
Professiona
l Services
Workers
Local Project
Management
Workers
Local Craft
Workers
10%
Contractual Goal
Construction Cost/Spend
Local
Workforce
Local
Suppliers
and
Materials
Procured
Local
Trade
Partners
Phase 2: Additional Local Workforce Aspirational Goal
Economic Impact Plan
> Expanding the Pipeline into Construction Careers
▪ Sponsor new careers for Pasadena Residents
> Market Analysis: Union Craftworkers
13 Trade SoCal Region Pasadena
Residents
Availability
Carpenters 20,000 44 0
Laborers 9,144 68 4
Ironworkers 5,400 30 0
Mechanical Pipefitters 1,040 7 0
Plumbers 398 7 0
Fire Sprinklers -- 5 0
Sheetmetal Workers 6,287 5 0
Phase 2: Additional Local Workforce Aspirational Goal
Economic Impact Plan
> L o c a l Zip C o d e s
▪ Tier 1: City of Pasadena
▪ *Tier 2: PUSD & Foothill WDB Service Areas
▪ *Tier 3: 10 Mile Radius (Project Site)
> Outreach & Education
▪ New Careers for Pasadena Residents
▪ PCC Internship
▪ K-12 Engagement
> Tracking & Reporting: Hours and Headcount
▪ LCP Tracker
▪ Subcontractor A ccountabi l i ty
14 *Additional
Voluntary
Reporting
Phase 2: Additional Local Workforce Aspirational Goal
Economic Impact Plan
> Eager to get to work! – Timely Local Workforce Opportunities in Phase 2
▪ 1 Local Laborer
▪ 1 Local Carpenter
▪ Murray Plumbing Prime Contractor
» 3 out of 7 total Local Union Plumbers
▪ 3 Local Laborer Sponsorship Candidates (Flintridge Center) ▪ 1 Local Pasadena Intern
▪ Walk-in Jobsite Interviews with Sr. Superintendent
> In the pipeline! – Upcoming Opportunities in Phase 2
▪ PCC Internship
▪ Citywide Survey Responses
▪ Pasadena Public Works Craftworker List
Phase 2: Additional Local Workforce Aspirational Goal