Toronto is in a similar bind. They amalgamated the the boroughs and other cities of the Metro area into the city of Toronto. The idea was of course to reduce duplication of services and by combining workforces they could reduce the numbers of middle management teams. Well of course that did not happen and in fact workforce like SF has grown. How can that be? Well some how the city managed to keep a lot of people employed even with reduction in offices being used, amazing. Would never happen in private industry, only in government operations.
Rob