Attachment #17: PERMANENTWORKFORCEAGREEMENT

Attachment #17: PERMANENTWORKFORCEAGREEMENT

I.PURPOSE.Thepurposesof theOffice ofCommunityInvestmentandInfrastructure(the “Agency”)andtheDeveloper/AffordableDeveloperinenteringintothisPermanentWorkForce Agreementareto ensure:

A.thatSanFranciscoresidentsobtain50percentofthepermanentjobsintheworkforces of the Ownerandtenantsatthe Site.

B.thatSan Francisco residents aregiven firstconsideration for employmentbythe Owner and tenantsfor permanent employmentattheSite.

II.APPLICATION OF THIS SCHEDULE TO TENANTS.TheDevelopershallinclude verbatiminitsleasesandrequiretheincorporationverbatiminallsubleasesforspaceintheSite theprovisionsofthisPermanentWorkForceAgreement.Theleaseshallmaketheincorporated provisionsbindingonandenforceablebytheAgencyagainstthetenanttothesameextentas these provisions are bindingon and enforceable againstthe Developer;exceptthat:

A.Unless agreedotherwisebythe Agency,a tenantwith26ormoreemployees shallsubmit itsworkforceplanthroughtheDevelopertotheAgencynotlaterthan90dayspriorto hiringanypermanentemployeestoworkonthetenant'spremises;ratherthanpursuantto therequirements setforth in SectionV.B.

B.Atenantwith25orlessemployeesshallnotberequiredtosubmitanworkforceplan pursuanttoSectionIV,butinsteadshallundertakeanddocumentinwritingthegood faith efforts itmadetomeetthegoals and firstconsiderationinemploymentrequirements setforthinSectionIII.TheAgency’sContractComplianceDepartmentshalldetermine if such atenanthasexercised good faithefforts.

C.Atenantwithless than 25 employees shallsubmitto the Agencythe reports required by SectionVIIof notlater than 60 days after itopensforbusinessand annuallythereafter.

III.GOALS ANDOBJECTIVES.

A.makegoodfaitheffortstoemploy50percentofitsworkforceattheSiteineachjob categoryfromresidents of the Cityand Countyof SanFrancisco.

B.asprovidedinSectionIV.B.1,givefirstconsiderationforemploymentattheSiteto residents of SanFrancisco.

IV.PERMANENTWORKFORCEPLAN.

A.TheDeveloperandeachtenantwithmorethan26employees,whetherornotitisa federalcontractor,shallprepareand adopta planforitspermanentworkforce atthe Site.

B.The workforce planshallcontain the following:

1.Detailedproceduresfor ensuringthatSan Franciscoresidents whoareequallyor more qualifiedthan other candidates obtain firstconsideration for employment. These procedures shallinclude specific recruiting, screeningand hiring procedures (e.g., phased hiring) whichensurethatqualifiedresidents receive

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offersof employmentpriorto otherequallyor lessqualified candidates. If a candidate(s)whoisentitledto firstconsiderationisnotselected forthe position, the Developerortenantshallhave the burden ofestablishingtothe Agencyand the arbitrator(if the matteris taken toarbitration),thatthe candidate who was selected wasbetter qualified forthepositionthanthe candidate(s) who was entitledto firstconsideration.

2.Whereitisareasonableexpectationthat10percentormoreoftheemployeesin anyjobcategory willregularly work lessthan35hours perweek,detailed proceduresforensuringthatminoritygrouppersons,women,andSanFrancisco residents do notreceive adisproportionate share oftheparttime work.

3.Anagreementthatnotmorethan15percentofthepositionsinanyjobcategory willbefilledbypersonstransferredfromotherfacilitiesoperatedbythe Developer,withoutthepriorapprovaloftheAgency.TheAgencyshallgrant approvaluponashowingthattransfersinexcessof15percentdonot unreasonablyinterferewiththeobjectiveofcreatingnewjobsforSanFrancisco residentsandthatsuchtransfersfurtherlegitimatebusinessneedsoftheOwner. TransfersshallbecountedindeterminingiftheDeveloperhasmetthe employmentgoals foreachethnic groupand women.

4.WhererequiredbytheAgency,detailedproceduresforutilizingOutreach Organizations asmeaningfulreferralsourcesforjobapplicants.

V.ARBITRATIONOFDISPUTES.

ArbitrationbyAAA.AnydisputeregardingthisPermanentWorkForceAgreementshallbe determinedbyarbitrationthroughtheAmericanArbitrationAssociation,SanFrancisco, Californiaoffice("AAA")inaccordancewiththeCommercialRulesoftheAAAthen applicable,butsubjecttothefurtherrevisionsthereof.Thearbitrationshalltakeplacein the Cityand Countyof SanFrancisco.

Demandfor Arbitration.Where the Ownerdisagreeswith theAgency'sNoticeofNon- QualificationorNoticeofNon-Compliance,theOwnershallhaveseven(7)business days,inwhichtofileaDemandforArbitration,unlessotherwisestipulatedbythe parties.TheDemandforArbitrationshallcontainataminimum:(1)acoverletter demandingarbitrationunderthisprovisionandidentifyingentitiesbelievedtobe involvedinthedispute;(2)acopyoftheNoticeofNon-QualificationorNoticeofNon- Compliance;and (3) any writtenresponse totheNoticeof Non-Qualificationor Notice of Non-Compliance.IftheOwnerfailstofileatimelyDemandforArbitration,theOwner shallbedeemedtohaveacceptedandtobeboundbythefindingofNon-Qualificationor thefindings andrecommendationscontainedin the Notice ofNon-Compliance.

Part ies’ Part ici pat ion.TheAgencyand all persons or entities that have a contractual relationshipaffectedbythedisputeshallbemadeanArbitrationParty.Anysuchperson orentitynotmadeanArbitrationPartyintheDemandforArbitrationmayinterveneas anArbitrationPartyandinturnmay name any other such person or entityasan ArbitrationParty,providedhowever,thattheOwnermadeaninitialtimelyDemandfor Arbitration pursuantto SectionV.B. above.

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Agency RequesttoAAA.Withinseven (7)business days after serviceofa Demand for Arbitration,theAgencyshalltransmittoAAAacopyoftheDemandforArbitration,the NoticeofNon-QualificationorNoticeofNon-Compliance,andanywrittenresponse theretofromtheaffectedparty.Suchmaterialshallbemadepartofthearbitration record.

SelectionofArbitrator.Onearbitratorshallarbitratethedispute.Thearbitratorshallbe selectedfromthepanelofarbitratorsfromAAAbythepartiestothearbitrationin accordancewiththeAAArules. Thepartiesshallactdiligentlyinthisregard.Ifthe ArbitrationPartiesfailtoagreeonanarbitratorwithinseven(7)daysfromthereceiptof thepanel,AAAshallappointthearbitrator.Aconditiontotheselectionofanyarbitrator shallbethatperson'sagreementtorenderadecisionwithinninety(90)daysfromthe arbitrator'sfulfillmentofthedisclosurerequirementssetforthinCaliforniaCodeofCivil Procedure Section1281.9.

SettingofArbitrationHearing.Ahearingshallbeheldwithinninety(90)daysofthedateof thefilingoftheRequest,unlessotherwiseagreedbytheparties.Thearbitratorshallset thedate,timeandplaceforthearbitrationhearing(s)withintheprescribedtimeperiods by givingnotice byhanddeliveryor firstclass mailtoeach Arbitration Party.

Discovery.Inarbitrationproceedingshereunder,discoveryshallbepermittedin accordancewith Code ofCivilProcedure§1283.05.

Burdenof Proof.The burdenofproof with respecttoPermanentWorkForcecompliance and/or GoodFaithEffortsshallbeontheOwner.Theburdenofproofastoallotheralleged breachesbythe Ownershallbe onthe Agency.

CaliforniaLawApplies.ExceptwhereexpresslystatedtothecontraryinthisPermanentWork ForceAgreement,Californialaw,includingtheCaliforniaArbitrationAct,CodeofCivil Procedure§§ 1280 through1294.2, shallgovern allarbitration proceedings.

Arbitration Remedies and Sanctions.Thearbitratormayimposeonlytheremediesand sanctions setforth below:

1.Orderspecific,reasonable actions and procedures, in the formof atemporary restrainingorder, preliminaryinjunction or permanentinjunction,to mitigate the effects ofthe non-compliance and/or tobringanynon-compliantArbitration Partyinto compliance.

2.Require anyArbitration Partyto refrainfromenteringinto newcontractsrelated to workcoveredbythe Owneror this PermanentWorkForce Agreement,or fromgrantingextensionsorother modifications toexistingcontracts relatedto services covered bythe Owneror this PermanentWorkForce Agreement,other thanthose minor modifications orextensionsnecessaryto enable compliance withthis PermanentWorkForce Agreement.

3.DirectanyArbitrationPartyto cancel,terminate, suspend orcause to be cancelled,terminated or suspended,anycontractor portion(s) thereofforfailure of anypartyto the arbitration to complywith anyof the Agency’s WorkForce policyrequirements.Contractsmaybe continued uponthe condition thata programfor future compliance is approved bythe Agency.

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4.If any ArbitrationPartyis found tobein willfulbreachof its obligations hereunder, the arbitrator mayimpose a monetarysanction notto exceed Fifty ThousandDollars ($50,000.00) or ten percent(10%) ofthe baseamountofthe breachingparty’s contract,whicheverisless, for eachsuch willfulbreach; providedthat, in determiningthe amountof anymonetarysanction tobe assessed,the arbitrator shallconsiderthefinancialcapacityof the breaching party.No monetarysanction shallbe imposed pursuanttothis paragraph for the firstwillfulbreach ofthis PermanentWorkForce Agreementunlessthe breachingpartyhasfailed to cure after beingprovidednotice and areasonable opportunityto cure.Monetarysanctions maybe imposed for subsequentwillful breachesbyanyArbitrationPartywhetheror notthe breachis subsequently cured. Forpurposesofthisparagraph, "willfulbreach"means a knowingand intentionalbreach.

5.DirectanyArbitrationPartyto produce andprovide tothe Agencyanyrecords, dataorreports which are necessaryto determine if a violationhasoccurred and/or to monitortheperformance ofany Arbitration Party.

Arbi t rat or’sDeci si on.Thearbitratorshallmakehisorherawardwithintwenty(20)daysafter thedatethatthehearingiscompleted;providedthatwhereatemporaryrestrainingorder issought,thearbitratorshallmakehisorherawardnotlaterthantwenty-four(24)hours afterthehearingonthemotion.Thearbitratorshallsendthedecisionby certifiedor registered mailto eachArbitration Party.

DefaultAward;NoRequirementtoSeekanOrderCompellingArbitration.Thearbitrator mayenteradefaultawardagainstanypersonorentitywhofailstoappearatthehearing, providedthat:(1)saidpersonorentityreceivedactualnoticeofthehearing;and(2)the complainingpartyhasaproofofservicefortheabsentpersonorentity.Inorderto obtainadefaultaward,thecomplainingpartyneednotfirstseekorobtainanorderto arbitrate the controversypursuantto Codeof CivilProcedure §1281.2.

ArbitratorLacksPowertoModify.Exceptasotherwiseprovided,thearbitratorshallhaveno powertoaddto,subtractfrom,disregard,modifyorotherwisealterthetermsofthis PermanentWorkForceAgreementoranyotheragreementbetweentheAgencyand Ownerorto negotiate newagreements orprovisionsbetweenthe parties.

Jurisdiction/EntryofJudgment.Theinquiryofthearbitratorshallberestricted tothe particular controversywhichgaverisetotheDemandforArbitration.Adecisionofthearbitrator issued hereundershallbefinalandbindinguponallArbitration Parties.Thenon- prevailingArbitrationParty(ies)shallpaythearbitrator’sfeesandrelatedcostsof arbitration(orreimbursetheArbitrationPartiesthatadvancedsucharbitrationfeesand costs).EachArbitrationPartyshallpayitsownattorneys’fees,provided,however,that attorneys'feesmaybeawardedtotheprevailingpartyifthearbitratorfindsthatthe arbitrationactionwasinstituted,litigated,ordefendedinbadfaith.Judgmentuponthe arbitrator’s decision maybe entered inanycourtof competentjurisdiction.

Exculpatory Clause.OwnerexpresslywaivesanyandallclaimsagainsttheAgencyfor damages,directorindirect,including,withoutlimitation,claimsrelativetothe commencement,continuanceandcompletionofconstructionand/orproviding professionalandconsultingservices(“theWork”).Owneracknowledgesandagreesthat the procedures setforth herein for dealingwith allegedbreaches or failure to complywith

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theobligationsandrequirementsofthisPermanentWorkForceAgreementare reasonableandhavebeenanticipatedbythepartiesinsecuringfinancing,ininviting, submittingandreceivingbidsandproposalsfortheplanning,designandconstructionof the improvementsand in determiningthetimesforcommencementandcompletionof the planning,designandconstructionand/orforprovidingconsulting,professionalor personalservices.

Severability.TheprovisionsofthisPermanentWorkForceAgreementaredeclaredtobe separateandseverable.Theinvalidityofanyclause,sentence,paragraph,subdivision, sectionorportionofthisPermanentWorkForceAgreementortheinvalidityofthe applicationthereoftoanypersonorcircumstanceshallnotaffectthevalidityofthe remainderof thisPermanentWorkForceAgreementor thevalidityoftheirapplication to other persons orcircumstances.

ArbitrationNotice:BYINITIALINGINTHESPACEBELOWYOUAREAGREEINGTO HAVEANYDISPUTEARISINGOUTOFTHEMATTERSINCLUDEDINTHE "ARBITRATIONOFDISPUTES"PROVISIONDECIDEDBYNEUTRAL ARBITRATIONASPROVIDEDBYCALIFORNIALAWANDYOUAREGIVING UPANY RIGHTSYOUMIGHTPOSSESS TOHAVE THEDISPUTE LITIGATED IN COURTORJURYTRIAL.BYINITIALINGINTHESPACEBELOWYOUARE GIVINGUPYOURJUDICIALRIGHTSTODISCOVERYANDAPPEAL,UNLESS SUCHRIGHTSARESPECIFICALLYINCLUDEDINTHE"ARBITRATIONOF DISPUTES"PROVISION.IFYOUREFUSETOSUBMITTOARBITRATION AFTERAGREEINGTOTHISPROVISION,YOUMAYBECOMPELLEDTO ARBITRATEUNDERTHEAUTHORITYOFTHECALIFORNIACODEOFCIVIL PROCEDURE.YOURAGREEMENTTOTHISARBITRATIONPROVISIONIS VOLUNTARY.

WEHAVEREADANDUNDERSTANDTHEFOREGOINGANDAGREETOSUBMIT DISPUTESARISINGOUTOFTHEMATTERSINCLUDEDINTHE"ARBITRATION OFDISPUTES"PROVISION TO NEUTRALARBITRATION.

AgencyOwner

VII.REPORTS.

A.TheOwnerandeachtenantshallprepare,foritsSiteworkforce,reportsforeachjob categorywhichshowbyrace,gender,residence(includingifintheWesternAddition RedevelopmentProjectAreaA-2),and,whererequiredbytheAgency,bytransfer/non- transferand referralsource:

1.Currentworkforcecomposition;

2.applicants;

3.job offers;

4.hires;

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5.rejections;

6.pendingapplications;

7.promotionsand demotions;and

8.employees working, on average, lessthan 35 hours per week.

B.ThereportsshallbesubmittedquarterlytotheAgency,unlessotherwiserequiredbythe Agency.InthisregardtheOwnerandeachtenantagreesthatifasignificantnumberof positionsaretobefilledduringagivenperiodorothercircumstanceswarrant,the Agencymayrequiredaily, weeklyormonthlyreports containingallor someoftheabove information.TheOwnerandeach tenantfurtheragreesthattheabovereportsmay notbe sufficientformonitoringtheOwner'sortenant'sperformanceinallcircumstances,that theywillnegotiateingoodfaithconcerningadditionalreports,andthatthearbitrator shallhave authorityto requireadditionalreportsiftheparties cannotagree.

VIII.TERM. The obligations ofthe Ownerand its tenants with respectto their permanentworkforces assetforthintheDDA,andthisPermanentWorkForceAgreement,shallarisefromthedatethe OwneroritstenantsfirstassignsemployeestotheSiteonapermanentbasisandremainineffect forthree years thereafter.

I, herebycertifythatIhaveauthorityto executethis PermanentWorkForce Agreementon behalf of the business,organizationor entitylisted belowandthatit willuse goodfaith efforts to complywith the Agency’s PermanentWorkForceparticipation goals.Ideclareunder penaltyof perjuryunderthelawsof the State of Californiathatthe above statementistrue and correct.

SignatureDate

PrintYour NameTitle

Company Name and PhoneNumber

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