have engaged butler enterprises as our cap manager. the first action i asked him to undertake was to go into 50-51 and create a lessons learned on what was kurng -- occurring there and also work with oeb yashey the contractor and their local participation and the remaining work to be awarded. the group or workshop program and what i believe from what i i hear was received very well. the first one was saturday a week ago. it will take time to benefit from that. the process is set up and i'm moving forward. we have recently awarded blocks 56 and 57 to

cahill construction. it has local knowledge and previous success with these programs. this is aligned with our vision of engaging multiple general contractors and taking the benefit of their best practices forward to increase participation. we will also be on the street for another capital ground manager as additional projects come on and we expect to benefit also from similar best practices exposure. having had many conversations with scott smith from robert sub she, i don't know if he had a chance to get here. he's here now. i'm glad to say that scott has shown greater personal

participation with 53-54 and i believe he's already seeing some successes of that working with local contractors on 53-54 who are not competitive on the 50-51 bid. working with robert sub she we have broken the packages down even smaller than 50-51. partially due to the fact that it allows you to do so because of individual buildings, but we felt that given the lessons learned from 50-51, if we break it further down, we can perhaps increase participation at the local level. we are looking for teaming opportunities between local sbe's and established companies to bring the local contractors, the necessary competitive bidding knowledge

and management expertise. in addition to robert soeb she and butler enterprises and cheryl and terry and patrick, i assure you that lawn ar management are engaged in the community and trying to learn from our lessons of 50-51 and implement procedures from the knowledge we gain from what their issues are and implement procedures going forward. we are open to all reasonable suggestions even as we try to meet our objectives and stay on scale. one point i would like to finally make is that while we

are disappointed so far at the results on 50-51, we are committed to improve them. the fact is that we are very pleased with the local work force participation which as reported is over 41 percent. we feel that the real opportunity even though they maybe out of area contractors engaged, the real message is that local residents are benefitting by this work. they are getting a regular pay slip and taking home money that can help their families and in so doing, we are not here necessarily to benefit from 50-51. this is a

15-year program. we depend upon the success of our local community neighbors to grow and to sustainable companies that can benefit us in the success of our program. at this stage i would like to turn it over to defer. and i will be back if there are any questions. >> thank you mr. cook. director, commissioners, chairperson, johnson. my name is defer butler. we are a small business program management firm in san francisco. we have been in business for 15 years in the city and of that 15 years, 8 of the years of our headquarters has been in district 10. we work with a number of small businesses, dbe and lbe firms.

specifically we were at the inception of the bay project and the redevelopment agency as well as others. we also worked or four seasons, kaiser, medical office building, we are currently on central subway projects. we work on anna ray of different projects, our specialty seems to be master developments because it's so diverse on the challenges of getting the contractors to participate whether it's underground utilities, vertical residential, condominium or biotech. we are a dbe firm and we've been here for 15 years. i would like to say our company was pursued with lan ar to manage the program. we are excited about. we have been

doing this for 15 years and we have never addressed a program to address the community and more importantly given the resources to achieve it. i would like to elaborate a little bit more. we started in august in this cap program. within our proposal, we were required to have a construction liaison there 50 percent of the team of the opening of the office and we were required to have a project administrator. that was budgeted in the program which was very important to understand that our office is opened from 8-5 everyday. from 8:00 to 12:00 we have a professional liaison. in addition, when that particular construction liaison is not there, the office is covered

from 11:00 to 5:00 p.m. with a project administrator and if any one has any issues or blueprints, documents or access to computers or any particular needs that are there. that is totally different than what we've done in the past and it really sets the stage of the commitment of the program, the commitment of this agency. the commitment of the community and commitment of lan ar. and we formed a team for proper components to build capacity with local contractors. we were blessed to have anglo king on our team to do community outreach and help us to develop and flush out the workshops in our community and towns send

management inc. which has worked with us for more than 12 years. he is brought on board to assist us with the contracting and provide the assistance with the guidance of the local contractors and specifically bid review, developing rfi's and understanding the program and how it integrates in your bid to be able to present the project and so on. lastly we were able to bring in a partner called north cal fdc which is a financial development corporation to help us assist the contractors in access to capital which is very critical. there is a number of stages that are very challenging in developing a program like this to make sure that not only folks get an opportunity to payton a project, but more importantly succeed which is what this is really all about. so we've developed a

comprehensive team and started rolling it out in august, the project already started but our team rolled up their sleeves and really engaged not only the community, not only lan ar or the general contractor but the cac and everybody involved to get an understanding of what the challenges were and the expectations of the community and getting everybody moving to make sure there was participation on the project. i would like to add on the outreach, we do outreach for any prebids going out, we set up a system to an e-mail blast and we don't just stop there because some contractors are not that the technology sophisticated. so we make sure

we educate them on what is happening on the shipyard. we do about 60 of these on the 90-day period. under our technical assistance, we noticed in the door that 50-51 already started and local contractors were coming in the office already asking questions and the questions were what is on the controlled insurance, how do i evaluate that in my bid? what is the proper way to do it? we had to mobilize tmi and the rest of the team to put on an owner controlled insurance workshop within a 2-week period to try to give them enough time to identify how they were going to to incorporate it in their bid. there were 17 people that attended and it was an excellent piece. most of the time we like more lead time. this was to give them an

opportunity to build capacity to participate on the project. since then, one of the things that we had to take a hard look at is that there are local contractors that are on 50-51. we anticipate a number of contractors on 53-54. the contractors are getting contracts out there, we had to jump to get together our capital workshop. we needed to identify the issues, the contractors that are in cue and the ones within 90 days and the ones to position themselves in the next 12 months. not only were they workshops where we talked about excess to capitals, we brought inexperienced bankers that did 101 assessment and evaluations of these companies to develop a

capital plan for them in order to participation going forward. this is exciting stuff for us because we've been doing this 15 years and one of the challenges that we've had is being able to identify, put together a program to be able to address access to capital. nor cal has a contract with the state of california where they can guarantee 80 percent of the loan to help local contractors to participate on the project. this is pioneering stuff. you can get the job but if you don't have capital you are setting yourself up for failure. we do not want to see that happen. this is our mantra and our goal is to build capacity for the future. 15-20-year project, let's grow these businesses, not only technologically or financially, but give them a real upper hand on participating and growing the business. finally, our

workshops were spanned throughout the year. we tailor it on the needs. there are some companies that are automatically participating on the project and some need how to do a change order and rfi and what are the processes for that as far as accounting and bookkeeping. so our goal with the cap office is to develop capacity through education and providing whatever resources and assistance that we can. again, we are excited about this. we've done a lot of programs. we have not had the kind of resources allocated to be able to do a real solid complete job. we do here and we can only be excited to come to you guys in the future and say look what we have accomplished collectively because this is something that requires the entire team. not just a general contractor, not just a developer but there is contractors from the community. they have to be honest and look

hard in the mirror and understand there are challenges within their company and they have to grow their business to participate. this is not a handout, but a hand up to participate -- on this project. i'm available for questions. >> thank you. commissioners. >> thank you mr. butler and mr. cook, that concludes the presentation. we are available for any questions you might have. >> thank you very much. i would like to take public comment on this item? questions? >> the first sticker is al norman. >> thank you. >> madam chair, madam director, commissioners, al norms. president of mechanical inc.. i

appreciate you an allowing me to speak here and explain how we feel about lan ar and roberts now. we know that 50 and 51 on this block deal was already on the process before you got this position in now. it was already in the process. the thing we didn't like about 50 and 51 is you had no process the place for a level playing field. it was just business as usual and the same good old boys you use everywhere else is coming to do this project for me. now we have danny cook an butler enterprise and a lot of other things, we know that we have a fair shake at level playing field. we are not asking anybody to give us a dog gone thing. we went here, we put in the position he did. we

expect him to deliver on what they said they were going to deliver. all those meetings and city hall and everywhere else that a lot of you attended. that's all we are asking, a level playing field in our backyard. we don't get a chance in anybody else's backyard. this is our backyard. we just want a level playing field. we don't want to you give us something because we live here or we are a certain color. just provide us with a level playing field. i think we got that with danny cook and butler enterprise and what they brought to the table for this process. we have you. myself as a contractor and my other fellow contractors. all we want is a level playing field. you can come out and see us and tell us about the adjustments we need to make in our business to be a success and all the other things. i have been in

this business for 27 years. the contracting questions, i have done the units for houses or 3rd street but i don't get the same consideration now that i got then. i guess it's a difference dealing with the daddy and then dealing with the son. but with a we see in place now with lan ar we think we got a good shot at a level playing field. i thank you so much for this opportunity. >> james mabme? >> good afternoon madam chair and the rest of the commissioners. my name is james may bree. i'm with janitorial

services. i'm with bayview renaissance and member of the bayview association. i did bid on it and i didn't get awarded the contract because my bid was too high. i make-up 1 percent. i do final phase cleaning. i try to keep my core crew working which is out of the bay point and i'm looking for more opportunities to hiring more young men and women and get them active as employees. the butler enterprise what they are providing to us as small businesses is real significant because we don't have that level playing field as far as having more opportunities at jobs. this opportunity is being provided right in our own neighborhood. as a small business who has all it's i's

dotted and t's crossed. i'm asking you see to it and not just myself and all that have their i's dotted and t's cross at bidding at a competitive process. not where you are making one mistake and you lose. but bid where we can make money to be stable to be able to sustain when these companies leave. we want to be able to stay in business and keep our core employees moving. that's all we are asking for. butler enterprise entity has invited us out to access the money program and blue read. that is significant because as a small business we don't have access

to money. for them to put on, for them to bring in people for us to actually contact and be able to acquire access to money when having a larger contracts because, for me, a small business, i don't have money to float these contracts. so access to the money is very significant and what the butler enterprise is doing in the bayview point and larn ar is awe son. i ask you to see that they do the right thing. thank you. >> washington? >> good afternoon. i'm here very much supporting butler enterprises in particular because i know the young brother for many years from the fillmore genuine above the board and i think he's very, i

think he's a bright person and what the city needs. he's working in the western addition. i'm also here supporting the project in total itself because it must move on. something that's been going in the process of planning for many years way before most of you were involved with the cac. i'm in the process now of trying to and getting ready to submit proposals to document what's going on for the future of our generation to see how a project of this magnitude starts from the beginning. it's upon me to get the paperwork in my neighborhood and i have been so busy. i have got to slow it down. they say what are you going to do? i'm trying to get that together. meanwhile enterprise is taking some other things. it's the main thing i

need to do to document this because this is something that is unique technique that we need to document to bring for our younger generations to see how it was done back here in 2013. so i'm here supporting the project as it stands right now. you have to understand this is an a working process. this project is not going for another 15-30 years. maybe someone after me will be able to take on what i have been doing. i'm here to support the defer enterprises and the project itself. >> angelo king? >> hello, i'm angelo king. i reviewed and co-wrote the epc a

long time ago. how about that. as of right now i'm working with butler enterprise group on the cap project. one of the things with the first workshop that we noticed is a lot of people complain and are we really going to get an opportunity. if we put in our competitive bid, are we really going to get some action? what we were noticing was apathy. these guys have been burned in so many different places where you take the time and effort and resources to put a bid together and you think you put a competitive bid together and all of a sudden you got awarded the bid, you are not called back, nobody tells you. so you feel like you don't really have an opportunity. there's a part of the job that we had to do and if anybody have seen me speak, i'm kind of an optimist.

a part of what we had to do is convince people that the players at the table wanted to see succeed and working in the background to do everything they can to make sure the playing field was leveled. if you put in a competitive bid you should get the bid. this is business. it's not like somebody else said, this is not a handout. these guys can do the job and if they can get a competitive bid within 3 percent. it's our job to make sure they get the opportunity. that being said, we have to spend time to say this is worth your time to bid. please come and bid, this is your work here. we had to convince people to come. so part of the way you need to judge son -- some of this as it moves forward you will know this is a level

playing field by how many locals are bidding particularly african american contractors if i want to call it out from district 10, if you see more of them bidding, then clearly they have been convinced that this is a level playing field and a real opportunity. and with no performance bond, with on-site general liability, with technical assistance at the ready, with people trying to find them ways to get not only long-term funding but cash flow solutions, we are working on their behalf. if all of you who push for this project and people like me and people like coffeeey who i think are honorable folks and cheryl who worked in the community if all of us are not here to make sure those goals are met, then i don't know what's happening. i believe we are getting there. you know, it's starting slow but we are getting there. thank you. >> dr. hann kit?

>> before you go on, can you call like the next two or three people at a time if they are all for this item. is there one more? great. >> good afternoon, commissioners, my name is dr. veronica hanukkah. i'm with the chairman visor committee over seeing the project. for now, members of this group, dedicated volunteers has spent countless hours and efforts and i have been able to carry this project from the conceptual phase to the implementation phase. i'm going quickly because i have a lot of notes to share with you but you know i'm fighting the 3-minute clock. following the san

francisco report on contracting it's very obvious to the cac and members close to the community involved with the shipyard project, the problem with the project, the lan ar's massive community benefits program, basically the whole picture on the ground is not only missing but inaccurate. that blame should be equally shared by your staff an others at cac, we should not let the san francisco chronicle and tell the news media. it's a real wake up call for all of us. we are working on a plan. the board of supervisors and our stake holders to disseminate on the ground. we have your fact and other agencies working with us, we are not pleased that pertinent information is not disseminated

as expected. an i am straegs -- illustration of that when i was interviewed by the station about the cac and the development, the young woman in charge came out and said, i'm so sick of hearing this that lan ar was a rogue agency. by the time i shared with her exactly what lan ar had done, she was shocked. she said wait a minute, we want to make sure that everybody hears this. here are some basic facts. by the way, the cac also hosted supervisor mallia cohen. we made sure we updated her on the progress from the ground and we continue to update her. the main point is lan ar has rose to the challenge to providing the resources for the community. i'm skipping through my notes here. this is what the

cac is recommending. we are recommending the following. we will work with executive director tiffany to coordinate this recommendation. we would like an invitation from your commission for the pull presentation of the cac of the project on the ground and the i c committee and the legacy foundation and from our subcommittee chairs on housing and business to speak on the milestones on the alice griffith project development. that is it. thank you for your time today. i'm grateful that i was able to speak beyond that 3 minutes. >> i will be very brief. my name is parish. we have providing