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 a great carpenter out -- or a great plumber one in some cases, but they will have one that is only 10%. overall, labor's at 40%, and the contract in total is 40%. do you really want to go over it them for the 10% of the 10% in their grouping? one of the things we are interested in and hopeful of is working with the mayor's office, the flexibility the ordinance allows for focusing on the things most important to make it most successful. finally, we are identifying projects that are in the pipeline, the sewer projects. where have we not had participation before? how can we get to those and get to the higher percentages? i am happy to answer any

questions you might have. chairperson avalos: i think we are ok right now. we might a little bit later, but thank you mr. harrington. thank you for your presentation. next, we will have mpa. >> good morning, supervisors. chairperson avalos: good morning. thank you for being here today. >> just a second. i have an overhead. i am sure you can -- for those of you that do not know me, and the deputy executive director for the a 78 -- for the sfmta.

we are strongly committed to the local hire ordinance and doing everything to ensure that san francisco residents are provided every opportunity to work on a construction project, which include central subway. to further the spirit of the local hire ordinance, which commit to providing financial support to the office of economic and work-force development and city build, to support such programs as the vocational english as a second language program and the tunnel worker preparedness program, in which the puc has just completed its first successful sponsored class. we will continue to seek guidance from oewd and will fully incorporate and implement the city's employment and work force development provisions, including local hire, first source, and city billed to the maximum amount required under

state law. we'll see guidance on maximizing local hiring on our projects. currently, our executive team is in washington and we will be meeting to discuss the status of federal funding projects. that will include a discussion of the city's new local hire ordinance and the impact that may be effected through capital programs. chairperson avalos: we had controversy about that. the ordinance calls for segregating our local funds and when a project has a mix of local, federal, and state funds. segregate our local funds, and we would apply the local hiring principle where we would not apply it to the federal funds, which could be barred by the constitution. we are getting money for the

central subway and other projects. we can have the most robust implementation of that part of the ordinance. you are mr. rose had mentioned "federal government would not allow that whatsoever, because our local dollars are drawing down a federal match. that is what our staff are going to be talking to the fed's about in d.c.. is that correct? >> that is correct. the guidance and we have been getting verbally is that any project that receives any amount of federal funding, the guidelines have to be adhered to federally. so the segregation would not be allowed. however, we think there are some opportunities. that is what the executive team intends to discuss in their meetings this week. chairperson avalos: i did want

to make sure the ordinance is flexible enough to apply to products. "we're very appreciative that it gives us the flexibility to take a look at where the guidelines allow was the opportunity to segregate -- allows us the opportunity to segregate or do labor agreements that are not specifically mandated by federal law. we are in a process where we are trying to find our boundaries. we are trying to establish a model for contracting requirements that will allow us to implement the to as much of the full intent of the ordinance without violating federal law. we are in the process of taking a look. we do not believe we are in a position right now to say federal guidelines, government

and we are not going to take a look of the opportunities. we think that not only all contracts going forward can be robust enough to include the local hiring policy, but we can even implement requirements into contracts such as the tunnel contract that was advertised. we have opportunities. that. and what is going to depend on the gardens -- federally and the working models are staff are working on to put into our contracts. chairperson avalos: los angeles is doing a lot of work that is funded by the fta and they do have local hiring project labor agreements that will help to generate local hiring. is there a difference that we have here in san francisco that makes it a little more in doubt?

>> i would not say there is any difference right now. the doctrine to cede -- we are trying to see the clue what is happening on other fronts. l.a. has two options for project to be bid, with or without the requirements. they are still trying to fill their way to see what the fta and others would allow. the project liberal agreements -- we understand that if that allows supplemental agreements like project labor agreement -- where we are looking right now it is at the specific question of whether mandated geographical preference would cause us any problems with the funding. chairperson avalos: great. thank you. >> finally, i want to show you a

couple of charts. one is the locally funded construction contract we have coming up for this fiscal year. luckily, our funded construction projects include parking facility construction and $3.90 million in traffic signal construction. these will employ the full extent of contracting requirements for local hiring. we believe we are timely and can put these in our contracts and fully implement those. on the other front, the reminder of the contracts we have in our agency that are federally funded make up a huge amount of dollar value of construction for the agency. federal contracts include $393 million in subway contracts this

year. we also have about $7.26 million in other contract that are federally funded. we are working to develop a contract the model that has requirements that maximize the intent of the local hire ordinance without violating federal law. as we get more guidance on the federal side, we are going to be able to develop that model to as much of the intent and extent that the local hiring law requires. i heard the other departments to think about challenges. we are not as far along in working out the detail focus on the different labor entities. our biggest challenge as an agency, because of the majority of funding coming from the federal side, would be to quickly get to a contract and requirement model than the federally-funded projects. staff are working pretty hard

with oewd, city build, and the community to see what the model might be. the sf mta is fully committed to support this local hiring ordinance to the full extent feasible. i would be happy to answer any questions you might have. chairperson avalos: i appreciate your time being here. next up, director john martin. >> good afternoon, supervisors. john martin, airport director. we have updated in our strategic plan and changed our mission statement. my are recognizing the importance of providing jobs to san franciscans, providing business opportunities to san francisco businesses, and

recognizing that we are an economic engine for the bay area and located in san mateo county and need to be a good neighbor there as well. the airport has $124 million in projects directly subject to the local hiring ordinance in the last five years. $78 million of those projects are in the next 18 months. we have $147 million in additional projects that have grant funding over the next five years. will be seeking to maximize local hiring under those projects, following closely what mta does in being able to segregate the funds. we think there may be ways in our power and safety areas to do the same thing. we are both part of the department of transportation. that will likely set a standard we can follow.

i will be careful not to repeat things my fellow department heads of said. at the basic level, the partnership is really key, the partnership we have with oewd and the working group, and working with partners on the contract inside, labor unions from san francisco and san mateo county, which is a unique as but for the airport. we are drilling down the specific hours required by trade on the upcoming construction projects so we can work together with the working group, reach out to union leaders to develop a strategy in making sure the goals are met. we are making sure labor availability is there to continue to work