captioned by the national captioning institute --www.ncicap.org-- supervisor mar: good morning, everyone. welcome to the regular meeting

of the transportation authority finance committee. my name is eric mar, chair of the committee. ericka chang is our clerk, i would like to thank sfc tv for providing access to this meeting. -- sfgtv for providing access to this meeting. first item? >> review items from previous meeting. supervisor mar: without objection. please call item no. 3. >> recommend exercising the first one-year option of the professional services contract with pendergast & associates by $275,000, to a total amount not to exceed $875,000, to provide disadvantaged business enterprise/small business enterprise consulting services for the presidio parkway project and authorization for the executive director to

negotiate contract terms and conditions. this is an action item. >> good morning, chairman, members of the committee. i am the director for capital projects. we will be presenting the item on page nine of her packet. july of 2009 the authority entered into a contract with pander raft -- pendergrafast and associates for the small business advantage program. this was not a happy record of small disadvantaged statewide contracts in the past. there was a stronger desire by the authority to make sure that there were opportunities and that those opportunities were fairly promoted, particularly to those based in san francisco. i have a presentation that i

will start with momentarily that provides a brief overview of the results so far of the contract. the authority is recommending extending the contract by one year, exercising the options anticipated originally to both continue to work for an additional year as well as expand the scope of work to include some unique activities in a public private partnership that is being used for phase two of the implementation of the project. this new contract in methodology gives us an opportunity to expand beyond the low on innovation in this area. -- expand the envelope on innovation in this area. we have results today, as well as innovations that we are looking at another p3 -- under

the p3 arrangement and the scope of the extension. the current program has a number of goals. specifically the implementation of numerical goals identified for the project, for small businesses and disadvantaged businesses. also to engage in a level about reached that will provide comfort in confidence to this community. that there were opportunities for them and that they would be able to participate during this implementation. to participate in the process of matching local and disadvantaged small businesses within the various contracts. the work program consists of a number of tasks identified here. basically, it is the promotion

of and participation of small businesses through a series of activities. more or less a conventional outreach activities consisting of workshops and conferences. very aggressive monitoring and data collection programs. perhaps one of the most useful functions is the consultants have been actively engaged and analyzed the prime contracts. identifying specific small and disadvantaged businesses that have the capability of performing that work with prime contractors to ease the burden on the prime contractor. there have been a number of organizations that have participated in various out reache and coordination efforts lifted here -- listed here.

the california department transportation, state services, and a host of other agencies have worked with us to implement the program. some of the major outreach efforts that have occurred, contract 3 and contract four were the two three large contracts implemented in 2009, 2010, to begin construction on doyle drive. including more than 100 firms that participated. the mega-construction connection conference was a citywide event that involved every agency in the city to bring together prime contractors and small and disadvantaged businesses.

we have been running our own certification exercise that allows businesses currently registered as local businesses in san francisco to be certified as a california small business. we did that through real-time workshops in the city. funds were eligible for state, city, and federally funded projects. pendergrast has been very effective in putting together a peer to peer network. one of the challenges was programs run by bureaucracies. the information that ultimately gets to the field is oftentimes met with skepticism. the peer to peer program encourages firms that have been successful on winning work with major projects to interact with their peers. we have used youtube and a

number of other networking media in order to allowed the small businesses that have been successful to tell their story, explaining their successes so that others can emulate. the program was picked up by the federal highway administration and was carried on their web site for about six months. they considered it a wonderful example of local program being implemented locally to achieve national goals. the efforts on precipitation in this day death are based on contracts from the american reinvestment and recovery act program. it has only been 2% for disadvantaged businesses throughout the state. this is not a particularly impressive number. we have been able to do much better on the blow dry project

-- doyle drive project so far and we expect to continue doing so one face to -- on phase two. contract two, again the goal has been a much higher level of achievement and we have seen on national contracts. from even the 25% goal established at the beginning. contract 3 is one of the major construction contracts for phase one. 60% of the goal has been achieved for this project, for under-represented disadvantaged businesses -- which is a federal designation -- 7.4%. supervisor mar: can you explain why you think we are not meeting the goal for the disadvantaged

business enterprises? we are slightly under 4 contract two, significantly 4 contract 1. what are the reasons for that? >> i think that we are meeting the goal. for contract one -- supervisor mar: for the small -- >> these of the disadvantaged businesses. supervisor mar: if you could repeat the goals for the disadvantaged businesses. >> in most cases it has to do with the nature of the work and the availability of disadvantaged businesses to do the work. contract one, as i mentioned, is an environmental contract. it involves a lot of plant collection and nursery activities. it just turns out there are not that many firms doing that

business in san francisco, disadvantaged businesses, that can do that work. there are a number of small businesses that can do the work and we are pleased that we were able to achieve those numbers. we are continuing to push hard on the disadvantaged business side. but is a challenge. looking at contract four, under- utilized business goals for this contract, we are generally on track and expect to meet goals by the time it is completed. phase two is being done as a public-private partnership. it is a different contract in format that has given us an opportunity to create what we think is an innovative program for small and disadvantaged business participation. unlike a typical construction contract, we are requiring the

preparation of a very detailed work plans for the participation of small and disadvantaged businesses. with a whole host about -- and other programs. -- out of reach -- of out reach and other programs. in a public-private partnership , there is a regime of non- compliance that the contractor suffers if they fail to meet performance criteria on the contract. in a means of providing incentives, we are actually consenting the contractor by providing offset regimes for these non-compliance points. ultimately, there is a financial incentive to the contractor to

be much more aggressive in including small and disadvantaged businesses in the program. the structure of the contract allows a great deal more flexibility in implementing the program. it is being implemented in cooperation with caltrans and the federal highway administration. goals of 25% for small businesses and 5% for under- utilized or disadvantaged businesses. there are a number of activities that will be included in the work under face to. specifically what is considered the un-bundling of activities that can be broken apart, specifically identified for small and disadvantaged businesses with continuing assistance for certification, as

well as assisting in doing technical analysis of the work and mentoring and managing their programs going forward. monthly contact is important to make sure that the goals are stipulated at the beginning of the project are actually being met. the extension of the contract will allow for a number of activities, including promotion of phase one utilization for small and disadvantaged businesses. the phase two program is described briefly under the p3 questionnaire. we will be rolling out a technical assistance program that will assist in technical certification into a series of workshops in cooperation with the federal highway administration and cooperative services in continuing to track and report on utilization.

the scope for the extension totals $275,000 with the by-task dollar amounts broken out in this slide. that concludes the presentation. i would be happy to take any additional questions. supervisor mar: colleagues, any questions? let's open this up for public comment. >> i might mention that we have representatives from the consultant here. the lead, as well as a sub who has been very active in the out reach effort. i think gwen is here as well. thank you. supervisor mar: if anyone from the public would like to speak, please come forward.

two minutes per person. >> good morning, supervisors. my name is yolanda jones. i come here as a bayview hunters point local business owner and someone at who is proud of san francisco. i have been working with doyle drive by an order for my company to secure a contract on this important project. because of the team, i have had face-to-face meetings with some of the prime contractors. i attend all of reach meetings. they introduced me to other people that can benefit from the services that my firm provides. my firm provides a unique servants. i do construction -- unique service. i do construction administration. and i also provide construction highway equipment rental.

these are tough times. it has never been more difficult to break into major projects because they want to be performed by primes themselves. as i mentioned earlier, they may fall short because the crimes are not as willing to allow ubde to participate, but you need teams like this group working out on doyle drive, because they do a fantastic job providing out -- and opportunities throughout the city. -- out reach and opportunities throughout the city. they are professional and unrelenting in helping people such as myself break into the field. i am asking you to please extend their contracts. they go over and above to make he talked and make these prime

contractors understand. -- they go over and above to talk to us and make these prime contractors understand. please, renew their contracts. [tone] supervisor mar: thank you. next speaker? >> supervisors, my name is francisco dicostra. we have some complications. if you played -- if you paid attention to what he was saying, when the federal government is involved, there is money set aside for a certain type of training. in the last one year, we have

been involved -- i mean the southeast sector community development corp., of which i am the executive director -- we have been in existence since 2000 -- but we have been in the bayview coordinating council since the early 1980's. [reads names] so on and so forth. the reason that i come here is to explain to you that we need opportunities to train dbe's, lbe's, to understand what it means to get a contract. as a sub or whatever.

even as a sub or a dbe, you can get a contract. but if you do not know how to manage payroll, on the blueprints, if you know nothing about made it plans, it makes it difficult. we didabout -- about native plans, it makes it difficult. $600 million. there are no opportunities given to dbe's and lbe's such that they can participate in that type of work. [tone] what i am here to tell you is that people can come here and say that i have so much -- supervisor mar: your out of time. >> i will wrap up. it is useless. is not creating fde's that can

move forward. supervisor mar: we have a question from maria cohen. >> do you have any suggestions? >> we have created is kno a zonr contractors to have a space. you have to have an office space for six months. you provide every initiative that they need to know about the business. they need a chief financial officer that will work with small businesses to monitor them. what i am here to tell you is that you supervisors, people come here and say that this is what is happening on doyle drive. this is what is happening on some other project where the de