now, there is more overtime, and this is more hiring as part of the negotiations, things of that nature, and that was just last year. and then it started back of. we are hiring operators to deal with attrition. we hit a very high level of missed runs, and i think this is a little bit hesitant about what happened in the last quarter. chairman nolan: ok, thank you. members of the board? thank you very much. secretary boomer: mr. chairman, seeing no public comment, item 15, the local hire. >> this will be presented by art director -- deputy director. chairman nolan: miss? >> this will be moving pretty

quickly. this is a response to a board member request. chairman nolan: way to go. we have all of this. maybe we can begin? >> certainly. good afternoon. i am virginia harmon. i am with the sfmta. this is for both are small business programs and other requirements. as you may know, bees are the

principal method that we used to ensure that the local community, both businesses and individuals, are providing the opportunity to work on these. outreach is a key component for opportunity. we are trying to participate in as many outreach programs that we can. we recently held a certification workshop, it in january, we had an event where many participated. we're very excited about the event. we will present -- a specific focus on work force requirements. for a complete list of events,

there was data which was sent to you last week, and there are additional copies on the table. one final thing on outreach, if you become aware, it will be useful. do not hesitate to contact me. we do want to do this as you possibly can. on our contracts, we have our small business program. we all know about some of these programs. i am sure there are many others, and though there are many, it is really not all of that complicated. we have compliance programs on our contract. we receive funding from the sfmta. if we receive funding for aid

projects, we do this person into caltrans. this was recently upheld by the courts. there is the local business enterprise program. this is for the funding source, including local, whether or not they are professional services. i can provide more detail. as you know, as such, we are presently implementing projects. under that program, we look at marketplace availability. in order to be awarded the contracts, they must demonstrate good faith efforts. to receive credit, the

contractors must do things in one of three ways. there is the san francisco human rights commission and the transportation guidelines. this is to determine responsiveness, it provides general oversight and monitors contracts. the contracts that we already bid, what these look like, throughout the bidding of these contracts, there is a significant level of concern was expressed about whether local businesses are provided the opportunity to participate. in spite of the fact that these contracts have been been under which it was that generally prohibits things, we see significant levels of business enterprise and you can see that

for every contract so far, they are committed to achieving the but dissipation bowl -- the participation goal. these are the remaining contracts. the contract went to call your attention to is a country where there is a 6% goal and a requirement that 50% be included. korea to see significant levels when that is bid. on the subway contracts awarded to date, approximately $261.3 million.

38.1%, and another oat -- and another amount. there are 80 subcontractors, and 45 of them are local business owners. there are additional details in the updated memo that you were sent earlier. and then, we move on to the employment requirements. overview, and with respect to wages, minimum compensation ordinance, a fair living wage to employees working on city contracts. it regularly adjusts. on the construction contracts, these are identified by trade

enforced by the office of labor standards and enforcement. the accountability regulations require that vendors provide health care for those that have $50,000 that last for at least one year. there is equal benefits ordinance that provides the same benefits that they provide to their employees with spouses. there are also opportunities and on another contract, the number of entry-level trainees -- a consultant is obligated to place one trainee, and the amount goes up.

these are typically are local residences. we're also implementing in the minority goals and the female goal for each trade. there are requirements which may require an apprentice. there are 51 employees based on the contract. and on the design packages, we are projecting 30 trainees. and this shows a breakdown of

the contract which is still in progress. our participation rate -- it well exceeds what is needed for federal regulations. this despite the short in terms of hours. in terms of local residents, we are nearing the 20% benchmarks and should exceed that level but contract completion. the second relocation contract, this is getting underway. we are, again, exceeding the federal minority goal. the participation in 17 plus%. we do hope to see improvement as

some of you know, on march 25, a new ordinance came into effect. it mandates that 20% -- the amount increases annually in increments. it requires the segregation of local funds to ensure a maximum amount. sfmta leadership, director ford and another, have been involved. while we wait for direction, we continue to express our commitment to doing everything

within our power to make sure that san francisco residents have the opportunity to work, including on the central subway. we will continue our partnership with the work force development with the intention of achieving the 20% local residency.for this year. we will hopefully implement the requirements to the massive extent possible according to lott, and we will continue to maximize these. we will continue to track and report. finally, we are in the process of setting up a trainee program, a program that is modeled on a similar program and we are working to collaborate and expand on the program. the purpose of the training program would be to have the workers have a safe working

conditions in and around the job site, in addition with working on the central, website. that is it for my report. if you have any questions. >> thank you for that report, which was very thorough. i have a couple of questions. are these to the office of work force development? >> yes, that is correct. they come through the first source hiring. and there are additional trainees? >> absolutely. these are allocated to the project. the number of trainees are increased. >> thank you again, not only

from today, but if you could keep me abreast of how that is going? i am very pleased with this report. chairman nolan: thank you, director beach. when we were in washington, this subject was brought up. i assume this is your opinion that the way this is being done here would not bring up objections because there is a local share of this? >> we cannot separate the local match from the federal requirements, so the local money is federalized because it is

matched. however, the program we are running here is not a mandate. we are running it through by encouraging or in getting people prepared to compete for those positions and making those positions available, working with city build and local first source, so we are creating a pipeline that will get us to the 20% without making a mandate with any of the contractors. we believe we're 26 us all. without this ordinance, we are right at the brink of 20% already. the efforts that we put in in the very beginning to make sure that san francisco people had jobs, it could be a bit more aggressive. they do a great job.

this is not just for local hiring but also for small businesses. this is on a local business side and others. chairman nolan: there are other transit areas doing something similar. >> just as an example, we had the deputy secretary here a few months ago, and i understand that there was the work that we have done, particularly as it relates to local businesses and what could be a model program. chairman nolan: thanks for bringing that to our attention. >> there are the local agencies.

for the work that step was put into this, and it is very comprehensive. >> yes, i think the community needs to be aware it. in fact, we have a meeting tomorrow with one of the groups that are supporting local hiring. >> yes, and i think it is important that we know that we support this. chairman nolan: thank you very much. secretary boomer: we actually have members the republican. chairman nolan: good afternoon. >> i am with the bright line defense project. we'll understand there is a request to continue this item so concerns could be expressed directly and off-line. while we are really excited, here are some specific concerns that people in the community

bring up time and time again. first, how much has mta spend to achieve its small-business numbers? second, the hiring performance for small business. third, how much money has mta spend to prepare people to work on the local subway? we understand that this is $0. of for you are, why have they spent nothing on local hiring. 5, how much did mta spend after being shut down due to a lack of residents working on the budget? 6, and finally, how much work force experience doesmta actually have? 84 your time. -- thank you for your time. chairman nolan: next speaker, please. secretary boomer: jenny lamb.

chairman nolan: good afternoon, jenny. >> we wore a co-author with the bright lines defense project, last august, and that report was examining the last five years worth of public projects and how many were put to work on those construction projects, and what we found is that it is just not working. and there are policy recommendations, and we are looking at the importance of building a pipeline in training, which is being raised by beat -- the sfmta staff. really solidifying long-term pathways. in preparing our workers from a different challenge a background, whether that be from immigrants, neighborhoods with stubborn cycles of poverty, et

like south of market and in chinatown, where this project will be going through. so our question is how much has the agency spent previously on work force development dollars and training for the first by korea project, and how much has it's been so far on the central subway? and just with the central subway being such an enormous project company it is our call to invest in training and work force development of san francisco residents for a lasting situation. thank you. chairman nolan: ok, thank you. next item. secretary boomer: the next item is item number 16, a presentation.

there are no members of the public who wish to speak. chairman nolan: seeing none. >> there were some highlights in terms of the program. however, we still have work to do it. chairman nolan: ok, thank you very much. secretary boomer: directors, items 17, a discussion to both pursuant to the administrative code section 67 as to whether to conduct a closed session and invoke the attorney-client privilege. chairman nolan: closed session? and then we will do

>> ok. item 18, announcement of closed session to discuss one case of existing litigation which the board approved unanimously. the board also met in closed session to discuss labor negotiations and public employee appointment hiring and negotiation. the board took no action with the last three items. directors it will be -- >> is there such a motion? >> not to disclose. >> meet suggest adjourned, right? ok. thank you all. >> thank you.