(a) Local Hire Requirement. The City shall include in all real property sales contracts for Housing Development, as that term is defined in Section 23.61(a), and in all City-as-landlord leases that include or contemplate construction of a Covered Project, the requirement that the purchaser or tenant of the real property comply with the requirements of the City’s Local Hiring Policy, as set forth in Administrative Code Chapter 82 and under the standards set forth in subsection 82.4(b). For purposes of this Section 23.62, the terms “Covered Project” and, notwithstanding Section 23.61, “Contractor” and “Subcontractor,” shall have the same meaning as the definitions set forth in Section 82.3.
(b) Mandatory Participation Levels. In the performance of work or labor on a Covered Project, each purchaser or tenant shall comply, and shall require its Contractors and Subcontractors to comply, with the mandatory participation levels set forth in Section 82.5 of the Administrative Code.
(c) City as Third Party Beneficiary. Each applicable construction contract for a Covered Project will (1) require compliance with the local hiring policy, with reference to this Section 23.62; (2) name the City and County of San Francisco as a third party beneficiary for the limited purpose of having the right to enforce the local hiring policy, including the right to file charges and seek penalties against any Contractor or Subcontractor; and (3) require the purchaser or tenant to reasonably cooperate with the City in any action or proceeding against a Contractor or Subcontractor that fails to comply with the requirements of this Section 23.62. A purchaser or tenant that requires compliance with this Section in the construction contract for the Covered Project and reasonably cooperates with the City in any enforcement action shall not be in breach of the applicable sales contract or lease with the City due to a Contractor's or Subcontractor's failure to comply or to meet the mandatory participation levels. So long as the purchaser or tenant complies with the requirements of the previous sentence, any enforcement action by the City, through the Office of Economic and Workforce Development ("OEWD") or otherwise, shall be directly against the Contractor or Subcontractor that failed to meet the mandatory participation levels. Nothing in this Section shall limit the remedies available to a City department, as set forth in the applicable sales contract or lease, for a purchaser's or tenant's failure to require compliance with this Section in a construction contract for the Covered Project or to reasonably cooperate with the City in any enforcement action as set forth above.
(d) Enforcement.
(1) Assessment of Penalties. OEWD shall have the authority to enforce this Section 23.62 against a Contractor or Subcontractor as set forth in Administrative Code Section 82.8. OEWD shall determine whether a Contractor or Subcontractor has failed to comply with the local hiring requirements. If after conducting an investigation, OEWD determines that a violation has occurred, it shall issue and serve an assessment of penalties that sets forth the basis of the assessment and orders payment of penalties under subsection 82.8(f) of this Code.
(2) Remedies for Non-Compliance with Assessment of Penalties. Each Contractor and Subcontractor shall comply with the final assessment of penalties by paying the amounts due for wages as set forth in Administrative Code subsection 82.8(f)(3) no later than 30 days after the determination or decision of the hearing officer is final. The Contractor or Subcontractor shall, in addition, be subject to the penalties set forth in Article V of Chapter 6 of the Administrative Code, including debarment. If any Contractor or Subcontractor fails to pay the amounts required under subsection 82.8(f) of this Code within the required 30 days, the non-complying party shall be subject to the enforcement actions set forth in subsection 82.8(f)(5).
