is of people receiving false information. i had expected it would be clear, from the memo that we got, that we needed to provide that to strengthen it. if we provide that record, -- and i am likely to support anyways. but if we can provide that record, i can support that. a record of false advertising. so in a new motion is to send a support without recommendation and provide that evidence of false advertising to the full board next week. can we take that without objection? thank you very much. colleagues, can we take a 10- minute recess before the next

item? thank you. supervisor avalos: please call item three. >> item 3. hearing on the status of the america's cup workforce development plan to include reports from the mayor's office of economic and workforce development, the port, and america's cup event authority on provisions for prevailing wage for temporary and permanent structures, ensuring high labor standards, and maximizing opportunities for local workforce training and employment on end use jobs. supervisor avalos: thank you, mademoiselle clerk.

the border supervisors had approved the america's cup agreement. we have teamed up with the america's cup regatta that will take place in the next two years. there was a lot of preparation for the america's cup and office of economic workforce development. we have been working at great length with the america's cup event a tory to see that the plan comes to fruition. also last year we had passed our local hire ordinance in construction that would mandate rising levels of hiring local san franciscans in the construction industry, funded with our dollars. we just need to make sure that the spirit of local hire ordinance and local letter of the law are apply where they can be. the america's cup is one area where do want to make sure we can put all that promise. that promise came and we had the

america's cup agreement come before us that the board of supervisors and budget finance committee. there was a direct discussion on the number of jobs that would be provided, an economic benefit that would come to san francisco. the economic benefit was about to be $1.4 billion. the number of jobs that were assessed, to be traded, about 800 jobs over all. whenever we have big development prod to come before the board of supervisors, there is a lot of talk about local jobs. it is one of the big selling points we have. i think it is important that we do our work on the board of supervisors to make sure we are maximizing that promise. we want to make sure that local residents will be able to get a job in the industries we create, in this case, the america's cup, construction projects, and other non-construction related

projects. our hiring ordinance has really focused on the construction aspect of this, and we looked -- need to look for the ways of filling the local workforce development plan. what helps us is that, in the agreement for the america's cup, we have language that says there must be a local workforce development plan to buy it -- provided at the time that the er is provided to the planning department, that will be in december. this hearing today is a status update on what efforts are going on so far for the workforce development plan for the america's cup regatta, preparations for the america's cup, and also to hear from the public about concerns, ideas on how to put all the promises as well. i want to thank the office of economic and workforce

development, representatives for the america's cup authority who are here today. thank you for your early work on the workforce development plan. thank you for being here to share with us where we are so far. what we have in place today in terms of presentations is to get a broad overview, a fairly brief, of the whole america's cup, where we are at in terms of the planning, and then delve into the planning, that will be followed by public comment. first we have mike, the project director in office of economic and workforce development, who is overseeing the development plan. >> thank you, chair of the loss. supervisors, good morning. i am the project director from the office of economic work force and development. -- chair avalos.

i have a power point presentation that will give the overview of the broad event and plans, but also, the remarks from the chair more -- resonate in terms of the promise to deliver economic benefits. as you noted, it is very much a challenge to take models we have in different sectors and put them together in a way that hopefully addresses the full range of opportunities in the america's cup events. we will be doing that in a way that hopefully augment, enhances, brings forward legacy is that can help the city move forward and deliver on these benefits on a more permanent basis for its residences and businesses.

quickly, i'm going to a brief event overview, talk about the america's cup economic strategy, which really encompasses, as you noted, the over $1 billion in economic activity, how we are looking at that. in more direct places that we can influence and direct activity, and a more indirect opportunities we have to bring those benefits to san francisco. from there we will move towards the workforce development plan in particular. i would like to ask a couple of speakers to come and join me. first, and carlo pass from the department of public works to talk about the dree project. following that, and deputy martin from the america's cup authority. following that, rhonda simmons from the workforce development

division to talk about the strategies we're looking to include in these conversations, moving forward. quickly, i wanted to give an overview of the events. in 2012, there will be two america's cup world series event. these are 1-off exhibition regattas over the course of nine days. what will happen in august, another in september. these are the same team that will race in 2013 but they are using the smaller 45-foot catamaran. they have had two initial stops on this series. the first was in portugal in august. most recent was a couple of weeks ago in england. they are very exciting and a helpful way to start visualizing what is coming, helping our partners at the authority to see how they will put on this challenge. in 2013, the main event starts

in august and september with the louis vuitton challenger series. challengers will face up to see who will face the defender in the final period as of now, oracle is the only defender entered into the competition. once a competition challenger is selected, then in september, we would have the america's cup final. this slide shows that schedule. moving forward, a key partners. this is always helpful to start out with so people do not get mixed up on who is to. key partners here, all of whom have america's cup in their name. the lead partner is the america's cup event authority. they are the project sponsor who are overseeing the on-land aspects of putting on the event. they will be, for example, the lessee on the port short-term then use where they are putting

on the event activities as well as the permits the of park lands. they are also the party to the host of an agreement that is charged with developing the work force agreement. america's cup race management is the race of the artist's sister organization. they are overseeing the on-water portion of the event. the competition relating to the actual sailing race as well as spectator and events and the traffic on the water. they are intricately involved in the planning process as well. america's cup organizing committee is a locally formed nonprofit organization charged with raising up to $32 million of philanthropic funds to cover the public cost of the events. acoc also provides a key role in convening issues, including community issues, such as the work force plan. they have been a wonderful sounding board, helping us to put together not only the right

approach for san francisco, but the right approach in the way that everyone was promised to when we were first announced as the host city. supervisor avalos: how is the funding going so far? >> i believe we have raised about $2 million. they are well on track to reach the $12 million level. that needs to be reached by a the end of -- other relationships have helped them to realize dollars quicker in getting to that goal. getting back to the slide. this is just to orientate ourselves. a light blue polygon in the middle is where they are proposing the race. to be. the dogged, larger area was

where the race which originally slated for. understand the performance levels of the boats, keeping parts of the golden gate open for shipping traffic, in conversations with the coast guard, this area is likely to be the 2013 race area. along the northern waterfront, some park locations highlighted in yellow, starting west and moving east through the maritime national historic district. those are our key programming menus. they will be basically temporary installations for spectator hospitality, other vip, media uses. along the port waterfront to the east, at the bottom of the race area, you see a triangular area appear that is piers 27 and 29.

that is basically the america's cup village. moving south, in the bottom right hand corner, south of the bay bridge, the other major infrastructure location at piers 30 and 32. this is just to orient ourselves. a mix of more permanent infrastructure and improvements along the waterfront, as well as temporary installations and even activities on the park lands. -- event activities on the park lands. this is piers 30/32. this will be the team-based areas. this is where the vessels would be worked on.

this would also be a location with limited public access, including the brennan street wharf. this is obviously going to be a key place for event the party infrastructure to make it safe for the uses that are there. right now, it is not approved for this level of activity. with approval, it would then make this more habitable and would allow themselves to put their installations on top. as i mentioned earlier, i want to step back and take a look at the broad economic strategy. we mentioned the billion dollar number, the jobs number, over a thousand. those projections are obviously very exciting, but we need to do what we can to deliver on those promises. what we have tried to do is take

a strategical, looking at the different opportunities that are going to arise, how best to access those through public policies, contracts with our partners, just general work with our city constituents. small businesses that work for us, to make sure that they are ready as they can to take advantagethis diagram is a rougt you were a -- ready way to describe what we're looking at. from the center of this it represents the most direct opportunity we have to influence the spending. as you get further and further out, it is a more indirect relationship the city has, so we have to take a different set of strategies on those. you will see in the middle city projects, public spending. we are confident and really

upbeat those will be successful opportunities to really bring san franciscans. i think when we moved one circle out, i think the work force development plan went squarely in the circle. and it becomes an agreement or work force development plan that we then the share with them and targeted at the appropriate types of opportunities relative to the circle. those will be the primary focuses today, but i want to reference the outer circle as representing the racing teams, sponsors, in general spectators. i do not think we want to leave those to allow it to happen as it may. i think we want to tailor strategies to making people aware of the local hire and business opportunities, both on the sales and purchasers side to make sure those transactions happen and deliver on that portion of the projected economic benefit.

so here is 27 and 29 that i was trying to locate earlier. this is the america's cup village. to your right you will see a structure that is the new cruise ship terminal. this is the project we will talk about in a moment with more detail. this is the public infrastructure going in. the remainder of their installations will be put in by the event authority. supervisor avalos: one of the things i forgot to mention and wanted to mention was that we talk about local jobs and want to really emphasize the prevailing wage jobs, living wage jobs, and union jobs to the maximum extent possible. i want to make sure you understand what we want to be

able to have as we go through the work force development. >> that makes sense. and it is helpful to get the feedback at this juncture so we can carry that forward into the plan. we appreciate that. if we could go to the next slide, please. and this shows a bit of a spectrum of what are assigned to describe earlier, the left of the right to the black bar. select bart is the way we have to influence how that opportunities that are coming. obviously city funding carries with it contacting provisions and things better good schools -- good tools and realizing the opportunities. as we move towards the indirect opportunities, we have to look at other tools, whether they be contract requirements such as the work force plan today, but also as the merc further outburst of project sponsors and

spectators. we're working not only with our partners at the event authority and local chambers of commerce to understand ways that we can share information, not only in terms of seeking as many public postings of vendor opportunities as possible, but also developing preferred vendor list of vendors that are interested in participating in the city's work force plans or interested in participating in the local business programs. if we can tie those together and make those opportunities or make those programs -- or well-known to the people looking to spend the dollars, as well as put them forward as the best in francisco has to offer, that that will have about nine effect on what we're doing on a more direct spending opportunities. the last of the indirect tools would be marketing, and that is something we want to work with

local businesses and local economic development organizations to see how we can use the attention and excitement of the america's cup to better market to businesses, get people out in the neighborhoods spending dollars to really enjoy and take a great experience about what san francisco is all about back with them when they leave after the experience. so in terms of the middle circle, city projects, i think the centerpiece of the city- funded projects are the cruise terminal shall. that is what we will talk about the most detailed today. there are other related projects that are either directly referenced in the host and venue agreement or related to the waterfront areas we're talking about. the one mentioned, hosting venue agreement the one at pier 31, the open space area. we also have a project that

we're completing independently. there is another project under way and managed by dpw, but it will have exciting benefits for the way people get around the spectator areas. to go on to the work force development plan itself. -- on to the work force development plan itself. it is due as of the completion of sequence. -- sequa. opportunities that are called out as part of this plan includes infrastructure construction, which is something we have a number of policies and issues that we have had in the other developments projects, but we also have other

projects, including staging. other event-related employment, which would include employees or other activities related but not directly related to even staging. supervisor avalos: question from supervisor mar. supervisor mar: do you go over again how many jobs are permanent versus every? >> we are refining the temporary effect and is now. permanent, if we're referring to them as and use event staging jobs -- event end-use staging jobs. calculating the dollars that are coming in and what does that

relate to in terms of increased economic activity. when we come back with the work force development plan, i think we will try to right size those economic projections based on changes since there were first and last year. -- they were first sent out last year. supervisor avalos: the jobs around stage in would just be around for the america's cup. >> correct. everything we're term -- we're talking about is city spending and by its nature transitory. i think what we're not talking about in today's hearing are the long-term development. that is not part of the work force development plan, but i want to be clear this is focused on events themselves. supervisor avalos: as we build infrastructure that is -- term we will expect jobs to be

created. >> correct. part of the expectation is the indirect spending, so the company or the catering company that ranks of hiring, but maybe there is a long-term benefit. we can go up a couple more slides. we are using public/private partnerships, especially in the development context, but we want to make sure we're taking a thoughtful approach to the other less-well travel pieces of work- force development in terms of event staging and other opportunities so that we can not only build all the great models we have had in other projects but also create a new one for a unique set of opportunities. lastly, i want to run through the timeline ultimate deadline

for the work force development plan is this weee seuqua proces we're planning to post a draft for public review in late october. hopefully use the rest of october and late november to incorporate public feedback and if there are public hearings in describing the broader strategy i have described today as we hone in on what the final contours of the deals looks like. in late december we will put out our revised work force plan in conjunction with the close of the process. that is the schedule we are at now. we are excited, and i think pleased to get the feedback and direction we have already heard today. from here what i would like to do, unless we of questions for

there, is to ask mr. lopez to come up and then rhonda simmons. supervisor avalos: think you fank you. >> ed burkgar lopez. the cruise ship terminal project is a public works contract that is being managed directly by the port and staff. in may of this year we issued a request for qualifications for construction manager and general contractor services. the contract was awarded by the port commission in july of this year. that is one of the first major construction projects that included the 20% local requirements. we are in the pre-construction phase right now.

in addition to the construction contract, i want to mention the design is being done by san francisco-based firms. and they also have a contract for all of that a and these services. they are working with sap on that as well they have doubled participation on that contract. it is up 45%, one of the highest on the construction side we have roughly $60 million. if we were to use a percentage of what we expect to go towards materials and supplies and labor, we would estimate in this contract 60% of those $60 million would go towards labor. that is 24 million in labor that

we expect to spend on this project. we are committed to the 20% goal of the minimum, and we expect to meet and exceed the goals supervisor avalos: to that goal is by trade. what you see as the main trades that you see performing the work? -- that goal is by trade. >> most of the major trade you would see on a construction project. the only place where we would be like is concrete, because we already have a foundation. supervisor avalos: the prime contractor is turner? there will be subcontractors that will be responsible for hiring as well? >> correct. they expect to advertise anywhere from 40 to 45 different trade contracts that will be awarded on an individual basis. >> we are excited about it. and when we put the project out

to bid it was one of the major contracts. supervisor avalos: any specialized trades do not receive city contracts or do not typically work under city contracts? >> there might be a few. the majority of them should have the requirement. we tend to see specialty trade and something like elevators or escalators, but the rest of the major mechanical, electric, plumbing, is your basic type of work for you would expect to see high participation. supervisor avalos: local hiring is definitely a floor, so 20% would be the floor this year. do you expect some trades will go well beyond that to a much higher level of participation? >> i would certainly expect that to be the case. we have a goal of 16 percent signed.