supervisor avalos: ok, we are back. i said literally one minute, but it was probably two. but i meant it would be quick. madam clerk, please call item 6, our 11:30 special. >> item 6, hearing on the status of implementation of the local hiring for construction ordinance. supervisor avalos: thank you, madam clerk. passing the local hire ordinance was just the first step of a many-year process to strengthen

local hiring efforts in our construction project, and the implementation part is the one piece that really needs to get hold in on, so we can really make sure we are doing the program effectively. it is going to be an ongoing process. we are learning a lot as we go on, but what has been really exciting is to see how much their lead -- mayor lee has unlimited local hiring and how much work has been done in his administration, for our major departments that do construction work, puc, dpw, mta, and airport, and have done so under the work of niel mckelly, who is now in the -- i'm going to get it wrong -- office of workforce

development? the administrator's office. i'm embarrassed. [laughter] actually, being embarrassed is part of this job, actually. being embarrassed all the time. it is part and parcel all the time. so i want to thank you for all the work you have done. there have been a lot of outside discussions i had been part of. some concerns have come from business leaders, unions, and community members of our the local fire ordinance. there has been a great deal of support, a lot of questions that have been raised. also a lot of questions that have been raised by people from san the tail county in particular about the implementation of how legislation would be affecting residents in san the sale county. i think there has been a lot of disinformation people in san mateo county have had. many elected officials have seen this as having a negative impact

on residents and workers, and we did the work of developing the ordinance into a hearing that was done with the puc back in last april. we have just a lot of concerns about the impact. we are not flooding san mateo county with san francisco workers, especially because there are a lot of ratepayers in san francisco contributed -- contributing as well as relationships that centel has at the airport, so we want to make sure that they can say that there is a benefit to the airport being in san a tail county as well as they're paying into and buying water from the puc, that those investments that they are making, that connection they have to this project means they will have access to the benefits of local hiring. that is how we craft the legislation. i think we are making headway.

we're going to have another meeting with the same two supervisors and with assemblyman jerry hill, to really look at how misunderstandings do not mean that we need to have legislation on a statewide level that would undermine what we are trying to do regionally with our local hire policy. i would love to hear the head way you have made and the great work you have done on implementation of the plan to move forward. march 25 is the day that we will begin in earnest the catholic -- the actual implementation of the ordinance, and i would love to hear how everything is going. >> absolutely. thank you. good afternoon. in the deputy city administrator for the city and county of san francisco -- find -- i am of the

deputy city administrator. as you have eloquently stated, march 25, 2011, is the effective date of the ordinance, which means after march 25, this ordinance will apply to all bids. as you had talked about earlier, with our regional partners, there are -- there's language in the ordinance that exists -- that exempts existing project labor agreements. the ordinance also allows us to enter into reciprocal agreements, and i'm sure you will hear more from -- i'm very happy about the conversations you are having with the board of supervisors down in san mateo county, and i'm sure you will hear from the general manager and director of the air for about their outreach to san

mateo county. we have put together over a 30- person working group team, coming from the departments impacted by this legislation. we have gotten from those departments -- and they have been fabulous -- persons from their engineers, there spec writers, and their contract hires, to come up with most frequently asked questions and answers, and looking at the ordinance so this could be implemented in a fair and transparent way. in addition, other departments working closely with us include the city attorney, the human rights commission, the office of labor standards, and the

controller. the goal of the labor group is to roll of the ordinance so that we can achieve local hire, but also in a way that provides predictability for the contractors, for the department, and to maximize and use existing resources and infrastructure that already exist within the contract the world. predictability is very important. the goal of the department is to build the project and to deliver a project that is on time and on budget. from a contractor standpoint, it is important because they need to know what administrative requirements are required of them, what they are legally responsible for, and they need to know that before they submit their bids, and before they will be able to deliver and know what price they should be submitting. additionally, i think predictability in existing our

cool, and not to drive up the cross in the city. the goal is not to get higher bids. the goal is to not increase the cost of administrators, the cost to the city to run this, and we are making sure this happens. part of that is reaching out to everyone -- the department, the contractors, the labor. we have been meeting with as many people as we can, and we will continue to do that. in our partnership with the human rights commission, we met with lbe contractors. we have been meeting with the association of general contractors. we have been meeting with labor, with community groups. most important, on march 18, this friday, from 1:00 to 2:30 in room 416, we will be having a

public stakeholders meeting, which we are presenting today. i think it has happened already. the draft contract language that we would like to add to all the bids to go out. we need as much public feedback from everyone as possible. again, on march 18, from 1:00 to 2530 here in city hall, we will be having another public hearing. we encourage people to read the draft language and give us as much feedback as possible. supervisor avalos: that is a public hearing or a general meeting? >> it is a general meeting. it is not public, but it is open to the public. we will be advertising on oewd's web site. in addition, citybuild has participated in teaching, and we

want to continue to do that. supervisor avalos: and it to say i wanted to make sure you touch upon this, and we want to focus on three areas and a fourth as well, but the three -- and we have rhonda simmons here to talk about what workers expect. if you are looking for a job, where do you go? you hear me talk about departments, what their questions are, and contractors as well, and the fourth, we can save a little bit of time at the end about enforcement and how that is going to move forward. things are still a question -- if things are still in question, i would love to hear that as well. >> why don't i just move on to the next item? i think they will have a lot of valuable information to share with you. i'm here to answer any questions that you may ask, and i'm here to answer whatever you may need. supervisor avalos: great, thank you.

>> thank you, again. good afternoon. director of public works. i will just touch lightly on where we stand with the things. let me just say that as a department, when we redevelop our strategic plan back in 2009, we identified by providing opportunity -- which identified providing opportunities for local residents as something that was high priority. we firmly believe as a matter policy and department that there should -- there can and should be a dual benefit to the capital funds that the department managers. one is the outcome, of course,

and streets and buildings, the improvement of them, but also in creating jobs and opportunities for local businesses in the process. i have been, at least during my tenure here, fully supportive of this effort. we believe that this ordinance will certainly help us in achieving that objective. we have a number of projects that are going to be coming out shortly after march 25. we will be able to hit the ground running pretty quickly. we have a number of paving and sewer and curb grant projects that will be coming out -- curved ramp projects that will be coming out -- curb ramp projects that will the coming up soon. the challenge is that because we have a number of small projects coming up, we need to make sure that internally between us and

members of the city family and city attorney's office, the people bidding on prospective contracts, a lot of stakeholders in of all, everybody needs to be pretty much up to speed in a very short time. there are trading issues. there are process change and improvement issues that we are going to have the somewhat scramble to get up to speed on. another challenge associated with this type of work, the sewer work we do on behalf of the puc, is that historically, our numbers have been on the lower side. we have largely been around 20% or so on average for those types of contracts, but once we start drilling down, trade by trade, we have some that have performed very well, but we have others that have not. right off the bat, for some of those contractors, employing those trades, to that 20% for each of them is going to be a

challenge, so it will be interesting to see what kind of response we get. i do not know to what extent the contractors have really fig hopt going to see a reduction in the number of bids. we have done a lot of work over the last couple of years to encourage more people to bid, and we have gotten a large number of bidders. in part because of the economy, but even before that happened. but it will be challenging. we have been meeting with paving contractors to discuss many issues that are challenges or opportunities for improvement in working with the city. we have specifically address this issue with them before in terms of understanding what some of the challenges are, looking at local hiring under the old scenario. we discussed when this was in development stages what some of their reactions would be. we have another town hall meeting scheduled either this month or next month to further work with them on this, to share

the data that we have on what the actual performance has been -- >> what are the trace that will be most impacted, that will have to do the largest catch up? >> it varies from project type. on paving and sewer projects, those with a significant number of hours that have not been at 20%. cement masons in 2010 were under 10%. teamsters were right at 20%. i guess the cement masons are a big chunk of the work, and that is where the biggest challenge will be. overall, in 2010, we were about 23% for paving and sewer projects. supervisor avalos: with machinery, who does that work? >> the operating engineers have a good chunk of that.

they were at 38.5% in 2010 on fading and sewer projects. livers were at 20%. not much electrician work, but they were at 64%. within the paving well, it is cement masons -- within the paving realm. they have challenges, and kind of moving from challenges to strategies and solutions, i think that data is a big part of where the opportunity lies, as information with the contract in committee, with the work force advocates, with labor, so that folks know where their shortcomings are and where we are all going to need to focus -- being able to share this information with the contract in community -- contract aning community.

again, there are some trades that are not at the 20% level, so having the data -- i want to commend naomi and rhonda and guillermo and chris for the great work they have done in bringing the city together. they have been working on the technology side with the firm that provides our certify payroll system and enhancing the system so that we will all have good and real-time data. not just for us, but to share with the public. we currently put our certify payroll data of on data sf for use by the community or anyone else, but to be able to start getting down to trade by trade and looking at ours, to be able to share that with contractors and with the public and with labor, i think we will very much help. that is pretty much it. we definitely have a lot of

opportunities. from what i have seen from the work that naomi and her group have done, they are looking at streamlining the front end of the process, so it will actually be easier. we are looking forward, and i think it has been a great effort from the date the law was passed even before that, but up until now, and we will certainly be ready for march 25. supervisor avalos: great. thank you for your presentation. next up, general manager ed harrington. thank you for being here today. >> thank you, members of the board. i'm happy to be here today, actually. wanted to go through a couple of things. what is the implementation of discussion that mr. riskin started. the sec is what we are

internally doing, and the third is lessons we have learned. we thank you for adopting our legislation as a board. we have been concerned about how to implement it, obviously, because we are a large organization, but if you look at the next 10 years of the city and expectations for city spending on capital programs, it was the scene is resisting the largest apartment impacted -- it was the single largest department impacted. during the actual framing of the legislation, we want to thank supervisor avalos and others for welcoming ways to make it more successful. we are happy with that. since it has been adopted, we have been acted -- active in all the work-related discussions. i am on the policy group as set up by naomi, and everyone has been great to work on with this.

i have a number of staff working on the working groups. so we are looking forward to it. and again, not to repeat too much, but taking advantage of this ordinance, streamlining how we do current processes and taking advantage of this to make the whole process even easier and better is something i think we had hoped for, but i think most of us now think it really can happen with this, so that is a wonderful thing to be looking forward to. internally, we have been doing a variety of things. one of the things mr. iglesias is working on is to develop a system of reciprocity, and that is part of our local hire ordinances. we already have relationships with san mateo's county, and

really formalizing that and making that work is something we're looking forward to doing. we have also developed materials. we send out a letter to our wholesale customers describing how that works, that they would not be overly concerned. we have been telling the 26 wholesale customers we have how the process actually will work. we started our educational campaign, and we have been working with contractors who have begun to roll that out. so that we do not have misinformation coming from our department with all the project managers and boats we have working on these departments. we continue to collaborate with the office of economic workforce development. we provided $1.5 million to the office to work on a lot of our local hire issues, and we anticipate having the same amount of money in next year's budget. this week, we are releasing our rfp 4 program manager for the sewer system improvement project, and that will be the single largest program and project we will be doing under this ordinance -- our rfp for

program manager. local hire plan for both construction and professional services that outlines the steps necessary for training, innovative approaches to ensure the local hire policy of constructive first source are realized on all the covered products. hiring plan will include projections of types of crafts, trades, specialty skills that we can set the training process, so that when we get this, we have to be ready, and we need to take those jobs. on current construction projects, we have a lot of data on 525 golden gate, and i wanted to share that with you to show how this can work well and some ways to focus on how to make it even more productive. of 525 golden gate, we are now at about 40% in total hires. taking of the demolition of the old building looking at the new construction work that is done, we are closer to 50% of local

hires. we have about 118,000 hours that have not occurred in the building, so we can really start taking a look at what is going on. there is 17 different crafts that are working on that building. of those, six of the members have 90% of the work. as you start looking at how to make this successful, we want to work with folks to make sure we look at the big places you can get a lot of bang for your buck. out of the six craft that represent 9%, two of them are under 20%. it makes a lot of sense to be focusing on those than focusing on someone that has 112 hours -- supervisor mar: could you identify those? >> the six that represent the 90% -- carpenters at 66%, labors at 41%, plumbers of 41%, iron

workers at 39%. electricians are about 17%, and operating engineers about 15%. just so you know, electricians have about 7500 hours. operating engineers have about 9000 hours, bringing them up, 20% represents a lot more than bringing in a very small group of to get to 20%. again, focusing on the ones that have the most chance to provide physicians. the other thing we look at is -- what that means, i guess, is that the definition of specialty trade, meaning that you really were going to not work as much on ones that have little impact -- you may need to be looking at specialty trades by jobs as opposed to in total for the city. some jobs, you may have a very small amount in one trade. on another job, that is a very big amount. really, how we work with that to make sure that we focus again with the most job opportunities

are is of interest to us. supervisor avalos: 8 you might be able to talk about some of the factors. >> a variety of this. the most obvious is the sum of these trades have been working longer on this. they have apprenticeship programs that have been working on san francisco, so they have the opportunity. they have been actually building that. clearly, the job for all of us is to build in all these, and we have more and more people there. i think there are other things. some unions have larger jurisdictions. in some cases, where the union represents all those in california, and they are picking up the seniority list, it is very different than if the union only represents a smaller geographic area. again, some unions have different ways of doing calls off the list that make it more or less easy.

525 golden gate, even though the ordinance was not in effect, we gave evidence to the general contractor that wanted to have half will hire -- half local hire, and they have been fairly successful. some are more difficult. some have a smaller number of people, so there have been less opportunities in the last five or six years, so you tend to have an older work force. the amount of money you make makes it easier to live in different places. so some of these unions and the people in the make more money. more opportunities to live in different areas as opposed to san francisco. a lot of those things go into it. as people understand it is a focus of ours, and it is important to us, things will start to shift. the other issue that i think we wanted to be focusing on also, reaching through the prime

steps, this is one of the first times the city will start to do that, and again, i think we want to do that in a way that is successful. labor's -- labour's -- laborers represent 40,000 hours. there are 21 companies that provide this. 15 of those 21, they represent less the 1% of the work being done on the building, so there are really six companies that represent the bulk of the hiring, and again, it is important to work with them on it to make sure that these jobs -- that the job has a really robust set of people on that. i'm not sure it is as important to go to every single contractor and every single crack within that contractor. we have contractors that have several thousand hours where they have done over all 50%, and places that did not have