is that ok with you, commissioners? clerk: commissioners, then we are now on item number six, presentation and discussion of wthe doyle drive bde/sbe utilization program. this is a discussion item. president yee riley: welcomed. >> thank you. i know the gallery quite well. when i was present -- president, they were always stepping up to the plate when they're needed to be support, so congratulations to the commission for understanding how incredible the gallery is. so my name is -- and thank you very much for the opportunity to be with you today. this replacement project which is just over $1 billion in value, has been growing robustly

over the past several years, and more importantly, in the past year since nancy pelosi was able to secure the final funding for that project, what we are here to talk about is the business program, and we want to be brief and to the poinsettia bowl and understand what we are doing, who is doing it, and where we are taking it from here, because we all know that it is now more important than ever that small businesses and disadvantaged businesses, putting them to work and keeping them in business, so our team is pretty unique. i will kick it off to introduce our team, and then mr. butler will take it from there, and i will rounded out. -- round it out. >> good afternoon, commissioners. my name is when kaplan, and it is a pleasure to be here today. -- gwen kaplan.

note i am a two-term past president of this commission, and i was present when the small business commission went to being a full commission in 1998, so i am proud to see the good work that you have continued to do for smoak -- so many small businesses. my business itself is a direct marketing company on 16th street, ace mailing, walking distance from here, and i am pleased to be joined on the team from the buttner enterprise group, who is with us today, and randy, from an industrial company, who is not with us, but he is a native-american-owned business, and another who is very active in the asian american business community. .that person is on our team, as well as rick from a disabled

veteran enterprise, an engineering company, so together, we really do form the rainbow correlation bringing our best to doyle drive. regina has been a tremendous supporter of us of all of our activities, and she has been with us from day one since we started one year ago, making sure san francisco businesses are fully engaged in getting business from the doyle drive reconstruction. she has helped us in activities, such as getting the word out through the database to the upcoming lbe to sbe certification workshops, and office of small business has been critical to the success, so, dirk, i am going to ask you to share with the commissioners

an overview of our four-step process to make sure that as many businesses as possible get to work on doyle driave. -- drive. >> thank you, gwen. our four-step process is very unique. it is basically a straightforward process that is really concentrated on creating results. one of the things that we do is we work with caltrans to take a look at the opportunity to take a look at the various contracts from $1,000 of the way up to $10 million, and once we determine what -- determine what these opportunities are, then we go to the second step, which is when we go to her and bring her entire team in. what is unique about this process is that, one, we take a

look at the national data base. we take a look at the state database and match them up with the opportunities, so we can be able to pair the two together or help so they can sort through who would be the best teams. third, once we actually go through that particular process, our third process -- we go through it basically doing the outreach. $50 million itself. 300 people showed up, small businesses.

we were proud to be a part of a fact that this was a contract, which was forgetting others to participate. finally, and most importantly, the final state of the process, and report of tracking actual dollars. this is unique because most programs, the only track commitments and promises. what we tried is actual payments to small businesses. we are looking to see about the actual commitments and promises that they turn in to things and to see that they have an opportunity to participate on it, and most importantly, we do not just to outreach or identify contracts. we also technically assess these businesses, and, of course, when the contractors are participating, which is very

important to make sure that things go very well and that they can be successful. i would like to turn this over note to paul, -- over now to paul. we are really excited. >> doyle drive is unique. they hold all of the contracts for construction. spicuzza this is headed up by -- this is headed up by jose luis. they are amazingly committed people. we owe them an amount of gratitude, because it is not easy dealing with caltrans from time to time. and because on tolo drive, there are disadvantaged, note there are no local business goals, and we know we cannot do, but we

know we can also do, and they have been really great. 127 different chambers of commerce throughout san francisco. we also believe that these plans are large, they are huge, and if you have to pay for the printing of these, you are going to be putting out $400 just to find out if you actually have an opportunity. we actually got rid of that barrier, a drug san francisco and the bay area, we have paid to have those specs free of charge so that anybody can take a look at what is in those contracts. that has been really successful. the website has been great. we are using some innovations to hear directly from small businesses the are successful so that it is in their own words. note on contract number one, we are right now at 82% small-

business participation. there are environmental contracts and other contracts, building stabilization contracts, so 82% of all go to small businesses. one brothers company has really set the standard. he had a $25 million construction contract to do all of the relocation. he gave 62% of that contract to small businesses, .and a large number of local businesses. statewide, , there are currently on a statewide level. statewide, they are getting to%. so you can see why our numbers are so off the charts. on a contract number three, we have only one hardball to go out.

caltrans, that was 6.5%. contra four is the construction of tunnels, and we have been working very closely with theresa sparks on local participation, and we are currently at 17.56% of all dollars paid that are going to san francisco lbe certified business, and this is construction, and this is unheard of. we really want to push back to jose and the enormous whether

they have engaged this, because it really is putting people back to work, keeping small businesses in, and on july 1, we had an event, and julie, if you could stand up, she is with a view. she and her husband had had an exceptional business. just like two seconds about your business, because this is how the rubber meets the road. >> i thank you for the opportunity to speak briefly about my business. my business is concrete pumping, which seems very odd for a woman to do that, but i love construction. i love seeing things constructed and put together, so i actually

had an opportunity to meet paul at one of the outreach events, and i was one of 1500 people who were looking for work that day, and all of the general contractors where there that were on this particular project, so i had an opportunity to meet with every single one of them face to face and told them how my business could team up with their business, and i was very successful with that outreach event. i was able to get a contract with two, and this gives me as a small business, since i have been able to go to the outreach event, an opportunity to compete. i can now compete with some of the large contractors, where i could never do that before, and as a result of this particular business, the outreach event, and getting some of his business on doyle drivek i have increased my business by 65%, which is unheard of.

we were also able to purchase equipment, so we now have two branyan pieces of equipment that we can place on the project and utilize them there, so it is a wonderful experience, and it has allowed me a great opportunity i would never, ever have had before. thank you, paul. >> well, commissioners, our message here today is for san francisco and to the commission and the board of supervisors. we are truly able to make success for small business, and we're becoming not just statewide but the national model, on how to do a successful program, and it is only because of the assistance of the commission, and we truly hope that -- to put more stuff on the website, it is all about your effort and your leadership, because a lot of these big government agencies do not listen to small businesses, so your voice is so important, and i really want to underscore,

please, keep up the great work, because it truly matters for people like jolie and others, so thank you. are there any questions? -- people like julie. >> by heard what a difference it makes for small business, because of the contracts, but since the project is in san francisco, and i really would like to see more participation. can you share with me but some of your challenges are? >> sure. there were two phases. there is the engineering parts, professional services, engineers, architects, and so forth, and we have a much larger percentage of those contracts because san francisco has a large number of businesses. on construction, for instance, knoxville a lot of big

equipment, very, very large pylons, when we can find them, weather is a challenge is competing price wise. we are paying a lot more. whether it is insurance costs or whatever, san francisco has a larger burden. we are competing against businesses and other parts of the bay area or california. a lot of businesses need a lot

of room. she is on one avenue with a warehouse. then she has to put to her very large -- almost the size of fire trucks. that is how large they are. whether she is bidding on the central subway, mta, her competitors are in different parts of the state or in the bay area, and they can come in with lower rates, so we're trying to push as much as we can korean -- that we can. i am not trying to defend it. we do push as much as we can.

we are only able to make recommendations. more than half of what the engineering estimates are. with say something was going to cost $98 million. a low bid, one came in at $48 million. well, that is great for the taxpayer, really, really great, but in reality, it is tough for the small-business owner. every dollar and every penny makes a difference, so the environment is very tough for small businesses, and i think that we are doing a good job. i think we could use more. i would really recommend it if the commission could even perhaps write a letter to jose, urging continued emphasis on this issue, i think that would

be very helpful. i know that theresa sparks, that would be great. i know she has been doing some great stuff. i would not underestimate the power of your voice, so if you would like to see more, we would be happy to carry that banner for you. president yee riley: commissioner clyde has a question. vice president clyde: are tracking this could >> -- are you trucking this? >> they do not have hiring goals on this, but for the first time ever, caltrans and the mayor's office, they have budgeted and approved a work force devoted program. so rhonda simmons and her folks over there will be working in tandem to get more local hires

on the same. we know there is a natural synergy between work force development and small business, so it is kind of three legs of a store, stool, -- haute three legs of a small -- three legs of a stool. the mechanism is there. they are working with the union and so forth. there is a good flow. >> that information would be very helpful, i believe, to us and also to the general public, as well -- vice president clyde: >> .we look forward to working

with you to create more jobs. >> thank you. thank you, regina. really awesome. thank you. president yee riley: and just a note, in terms of our monthly e- bulletin, we have a highlight of the workshops. in monitoring our click-thropugh ugh rates, that is one of our highest. president yee riley: all right, thank you very much korea next item, please. should we go back to item number five? clerk: commissioners, you are now on item number five, the

discussion and possible action to make recommendations to the board of supervisors on board of supers ivers file number which the board of supervisors by a number100865, an ordinan amending the san francisco administrative code by adding sections 106 through 106.28, to impose a fee and out of a beverage wholesalers and certain other persons to distribute or sell a college beverages in san francisco to recover a portion of san francisco's alcohol attributable and reimbursed health costs and to fund administration costs. the director will be making a presentation. org leading the discussion. we do or leading the discussion. >> the full commission heard this at the july commission meeting.

the legislation and policy committee heard it on july 26 calm and at the full commission meeting in july, supervisor avalos had indicated that he was not going to schedule this as a budget and finance committee meeting until after the legislative recess, which would have been early september. then the commission was informed that he was going to need to schedule at least one hearing before recess, do timing issues regarding a measure on the state ballot but has now basically made a public announcement last wednesday that he was going to have, again, a special hearing, which took place today, to move a piece of legislation out of the budget and finance committee to have its first reading at

the september board of supervisors meeting, and this is with his hope that the legislation gets passed and that it is enacted in the 30 days prior to the november election, of which it needs to be a fee, because what is on the ballot will also require a two-thirds vote. at the state level. so this escalated time frame was not something that i think the commission initially -- we were initially informed that there is going to be a little bit more of a time frame for us to be a to analyze and have some discussions with the supervisor's office. . be able to analyze. so there are some changes that i would want to review with you,

and supervisor of the los introduced -- supervisor avalos introduced three key amendments that were heard at the special committee, so he is change the piece from out of mitigation to a " cost recovery -- alcohol cost recovery, note and then on page 6, the changes are that instead of copulating note it per alcoholic ounce, the treasurer's office in terms of doing collections dot on the matter have asked to have a change but 2 per gallon, and the fee will be established at the pump 0.3 5 cents per gallon for your, $1 per gallon for wine,

and this was per gallon of spirits, and then the other item of note, the first payment will start on april 30 as opposed to january 1. and then, on page 8, 922, the biannual review, beginning with the fiscal year will begin note 2011. " instead of 2012. -- instead of 2012, so that means should a piece of legislation be enacted, there could be a change in the calculation.

this was outlined in the nexus study. so next in your binders, you do have the commission's statement and we supplied to the board of supervisors after the legislation and policy hearing on the 26. a correction on that. the legislation policy committee hearing heard this on august 2. so what we have before us, commissioners, today, the board of supervisors budget and finance committee heard the matter, and i am quite pleased. we had probably close to 50 businesses to come out and speak. we're pleased to have that many businesses.

the key message from these businesses was bottom-line costs and what this would mean in relationship. the budget analyst -- the comptroller has provided an updated report. this report was finalized this morning to reflect the changes in the different calculations. >> commissioners, that report is located in the back of your binder.

so, perhaps maybe then taking the time to go through this in great detail, i know that many of you have had time to review this. do you have any particular questions on this? >> i do not have a question, but an however, it -- i have a comment. vice president clyde: what decreases we are going to experience. the losers on this. i'm very disappointed.

>> it doesn't change not much, does it. vice president clyde: i feel the legislation is really not taking into consideration the very real financial impact.with small businesses, and the loss of employment, and it seems that it is putting a huge burden on the businesses. president yee riley: of the legislation and policy meeting earlier this month, we talked about some of the concerns we had on this legislation, the timetable as well as the cost commitment