From this:

San Francisco City Hall started issuing municipal photo identification cards to city residents on Jan. 15, regardless of their immigration status.

"The SF ID card program is great," said Dr. Carlota Del Portillo, dean of the Mission campus. "It will be available for San Francisco residents only. If you live in Daly City, for example, you will not be able to have one."

Of course, if you're you're an illegal alien who lived in Guatamala until yesterday you can get one, just as long as you prove residency in Frisco.

And, if you're an illegal alien who wants to find work, San Francisco has some good news for you. From their "SF City ID Card - Business Participation" page (sfgov.org/site/countyclerk_index.asp?id=86599):

The card can help businesses streamline their hiring process because employers can use the SF City ID Card as a List B document for verifying identity for a new employee's Employment Eligibility Verification form (also known as an I-9 form).

Taking a look at an I-9 form (PDF link), a "a List B document" is one that proves identity, not employment authorization. However, combined with a fake Social Security card, it can be used to obtain employment.

In other words, the city of San Francisco is facilitating companies hiring illegal aliens.

Note also the list of benefits at sfgov.org/site/countyclerk_index.asp?id=78261, including this:

Serve as a form of identification to open a checking account at participating banks

Aside from misguided liberalism, that appears to be one of the main motivations behind the card; see San Francisco approves ID card; corruption in plain sight; Tom Ammiano?

UPDATE: For those not familiar with the area, Daly City is directly south of Frisco; perhaps residents of that city could protest SF's xenophobia and express their displeasure at SF erecting a virtual border fence between the two cities.