our homeless constituents. supervisor chu: thank you very much. you have a sense of what the value of the sale would be? >> from what we have gathered, it is in the $400,000 range. supervisor chu: ok, thank you. supervisor avalos. supervisor avalos: thank you for your presentation. it is great to have funds like this to support homeless services, and i want to thank the family of leila boroughs in that. to follow our financial policies though, this is one-time monies. so are we waiving our financial policies if we are going to be paying for ongoing -- we have to pay for capital and not for ongoing shelter services? >> no, this is not for shelter services. this is for homeless prevention services, which could be paying back-rent, late on electric

bills, telephone bills. it could be moved-in grants. it is one-time, but if we use it for rental subsidy, it does have an end date for the subsidy. supervisor avalos: our subsidies are generally approved in the budget on an annual basis. >> that is correct. supervisor avalos: this is funding that will not be around on an annual basis. the question for the comptroller is that we have our financial policies and talk about how we receive one-time monies, and how they are going to be used. i am for funding going for our housing subsidy programs peter i am not opposed to that, but i want to make sure we're following what we had approved last year around our financial policies and that we're using it appropriately. >> some of the rental subsidies, it does not have to be ongoing. there can be a gap for people who have lost employment, or it could be to pay back-red. it is homeless prevention services, of which subsidies are

included in there. supervisor avalos: question for the controller. i like the fact that we're putting resources into homeless prevention. i have been a big advocate for the rental subsidy program. as far as receiving these funds and expending them for the rental subsidy program, does that fit our policy? >> an excellent question. i will need to take a minute to talk to the department representative here to understand whether it does or not. supervisor avalos: i am sure there are capital costs that could go to words, you know, our shelter services, our shelter programs, our homeless programs, our health clinics that serve, as people. not saying we do not serve homeless people with it, but i want to make sure we do not come back and say we did not approve this expenditure in an appropriate way.

>> just a point of clarification. when i speak about homeless prevention services, it has an overview of all of the things that you just mentioned. so it could be used for capital, could be used to pay back-rent, it could be used to pay keeping someone's electricity on and the telephone services on. supervisor avalos: i would be supportive -- i am just one person on the committee. i would be supportive of keeping intact in keeping funding for our rental subsidy program for families. supervisor kim: thank you. supervisor chu: i think there is an additional question. then we will go to public comment. supervisor kim: i am happy to hear that we have a fund that citizens can give to to augment our public taxpayer dollars.

just a couple of questions. when did the mayor's fund for the homeless again? when did it open? >> back in 2003, i believe. supervisor kim: how much money is currently in the fund? >> we currently have approximately $235,000 that has not been committed. supervisor kim: there is $235,000 in the fund that has not been committed. >> correct. supervisor kim: how much in the fund that has been committed? >> the total fund, along with the anonymous donation of $500,000 is $1.3 million. supervisor kim: how do people find out about donating to the fund? >> it is on it the city's website.

it has been, like i said, around since approximately 2003. along with the homeless prevention funds, there are funds under park and rec where people can donate. it has been in around for a wild. supervisor kim: since 2003. >> correct. supervisor kim: do you have a policy for how we expend these funds? >> not a written policy, but we do have initiatives that we like to use the funds for. supervisor kim: which initiatives? >> the current one is the homeless family initiative, which we built upon with the donation -- supervisor kim: the one we launched in november? >> that is correct, that we launched in november. supervisor kim: is there a way

we develop these priorities? is it based on federal and state funding? is there a way we prioritize so that these programs do not have -- they do not have funding, so we prioritize them with private funding? i am curious to that process. >> well, you asked the question last year when we got the infusion of private donations which allowed us to expand upon the initiative. we have had the family initiative since 2007, where we wanted to provide rental subsidies to families, but it was not a pot of money that was ongoing, and part of the changes that we made, we made it from at least having from 24 months up to a five-year subsidy, but it was not ongoing, and it was based on whether or not a homeless family could continue on with their program. but, you know, based on the need

that the department carves out, that is basically how we establish our initiatives. supervisor kim: my last question but i am sure this is a public document already. but is it possible to get a list of the donors and how we have expended this money, the $1.3 million? >> yes, except for the anonymous donor part. a question to the controller's office, do we have a policy currently of policy priorities for how we deal with these private funds? i am sure the mayor's program is not the only place where people can donate privately to the city. i am sure other departments have them. i think it is great we are able to raise revenue through charitable and private groups. i wonder if we have an overall policy on how we expend these

dollars? >> good question. regardless of where money is coming from, it requires the board of supervisors to specifically appropriate that money to use you authorize or two, in some cases, designate to a department that, through the creation of a special fund which this is, that those funds are appropriated and can be used for expenses that the board of the rises in that special fund. so the board acts to appropriate the use of the private money coming in and the specific use through the budget or supplemental appropriation for this board or previous boards have established special funds to appropriate those proceeds for even years. this is one example of a special fund. there are others. they are all in article 10 of the admin code where all of our special funds are listed. but there are other special revenue funds. for the purposes of accepting private gifts for other public uses, such as parks, street

cleaning, and we have gift funds for both of our hospitals. in all those cases, the board has specifically appropriated for a specific use or authorized its use for a set of expenditures through the fund. supervisor kim: i know that recently the bennihoff's made an appropriation for the homeless fund. in my memory, there's arctic -- an article about the dave matthews and donated to the mayor's fund. >> that is correct. in this case, this fund is authorized by the board of supervisors to automatically appropriate revenues coming in to eligible uses, as defined in the section. so they do not come back to the board in this case, because the board in establishing the fund in the first instance authorized automatic appropriation bill supervisor kim: so the board authorized this fund in 2003? >> i do not know when the fund

was initially established. i think it was before 2003 that the fund was initially established. but that is one of the rules that the board codified as to the mechanisms of the fund. supervisor kim: thank you. i apologize for all the questions. this is a new to me. i appreciate that the city is proactive about gaining revenue but i am is appreciative to ms. boroughs for donating to our homeless services here in san francisco. supervisor chu: thank you. why don't i open this up for public comments. there is no budget analyst report for this item. if there are any members of the public who would wish to speak on item number one, please come forward. seeing none, public comment is closed. to supervisor avalos's question -- >> the answer is that the one- time and nonrecurring revenue speaks to general fund revenues. it specifically excludes from the revenues that are otherwise

restricted for other legal reasons, state, federal, or local laws, to a different purpose. in this case, we have a legal request. it is binding upon the city on how we can use these funds. it is physically requires us to use it in a certain way. that means it does not flow through the general fund. therefore, it is not subject to the recurring revenue policy adopted. supervisor chu: thank you. it sounds like in some categories of expenses that can be paid for through this fund, there are items are categories within what you can spend it on that can be one-time in nature. paying back payments or utility fees on a one-time basis. >> move-in grants and furniture needs, things of that nature. supervisor chu: ok, thank you for the clarification. if there are no other questions, the item is before us. supervisor avalos: motion to approve. supervisor chu: motion with recommendation.

we will do that without objection. >> item number two, 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 chu: thank you. this was brought to us from supervisor avalos. i know there are a number of speakers. we will have additional america's cup items later on. supervisor avalos for any opening comments. supervisor avalos: great, thank you, chair. i appreciate the opportunity to bring this hearing back. its last appeared on september 25 in the city operations and neighborhood services committee. we provided this committee out of convenience, and i appreciate their work of the office of

economic and workforce development, our labor and community allies, the laborers, carpenters, and we have had some good developments in our discussions around the new work force and small business inclusion plan. that will be discussed today. i appreciate that movement. just yesterday, we were talking about how we can move forward on prevailing wages and local hire. the office of economic workforce development in the event authority were able to come to some concessions and some real benefits that i think are important to note. that is the payment of prevailing wage. subcontractors also be bound by these wage provisions. and there will be a lot of work in bringing the premises of into

line as well. i think it is great progress. i want to say that that movement is very well-appreciated. i think it is going to have really great benefits for residents here in the bay area and locally. i think there is more to go. i believe that our local hire ordinance that we passed in 2010, that was a great partnership between contractors, laborers, and community groups and the city to put together this policy as something that i think can be extended to the private side. right now, the local hire ordinance is extended to -- where there is a city contract for construction, and i think the spirit of the ordinance makes a lot of sense for the america's cup. especially that when we know when the america's cup first came to us in late summer of 2010, while we were talking about about local hire ordinance, there was a great

deal of talk about san franciscans getting jobs in the america's cup rollup and as it was going on as well. that was significant to me. i think that everyone felt that this was going to be an event that was going to be beneficial to so many parts of san francisco and so many communities, from the business community, sailing committee, arts community, construction workers, folks from all different neighborhoods as well. so this hearing is really to get a sense of where we can still get to. to also acknowledged the movement that has happened. i know we have mike martin from the office of economic and workforce development, and i know there is a presentation today. before we start, i know one of the last remaining things that we talked about is extending the spirit of the local hire

ordinance to this event. another has been a great deal of talk about what we have, a goal of hiring local residents, and we have steps to get there. but the goal has been -- it resembles very much our first source program, based on good faith efforts. and the big movement that we had to get to the local hire ordinance was out of the experiment -- experience of filling that the good faith efforts were not something that worked. and if you want to discuss, you know, a program that resembled good-faith efforts and died of is -- when i use the word good- faith effort, i want to move from that to another level. it is about a requirement or looking at h a lookingire ordinance. -- looking at a local hire gordon is. not setting a maximum. i am not sure we can resolve that today, but we also have the

dba coming up before us, and we can discuss that further. we will hear from many people here. the committee has concerns. they want to helping the event authority to be successful in putting on the best event we can. i think that that dialogue can help strengthen the event that is going to happen. mr. martin, are you up first? >> good afternoon, supervisors. mike martin, america's cup director from the oewd. thank you, supervisor avalos. that was agreed description of where we have come to at this point. in the hearing back in september, i sort of had a fairly lengthy presentation about the economic opportunity about the event in san francisco being unique in a lot of ways. i think part of that presentation focused on the the way that the jobs and small business opportunities are really going to come from a lot of different places. not only from the construction

projects, but i think you are referring to the local hi ordinancere , but also to other opportunities in the construction program. yesterday we had the -- another milestone in the cruise ship terminal project, which is a public aspect of this project, and that is moving forward with all of this city contracting provisions as part of it. we are excited to see that go forward. i also sort of take time to appreciate the efforts the event authority has moved forward in terms of really talking about all the other strategies to bring home these economic benefits to san franciscans, not only from their individual spending, which he might see in a larger real-estate development projects, like in a treasure island in candlestick, but in other things like the sponsors that are coming to san francisco and the events they are putting on, all of the spectators coming to san francisco to see this great spectacle on the day.

i think the opportunities that we see and making sure those people see what is great about san francisco and grade about the neighborhoods, the event authority has been a great partner. one of the great things that underscores this is changing the workforce development plan to the workforce development and small business inclusion plan. i've been they have seen the real benefit, not only in their own conduct and with small businesses, but also in having an america's cup connect web site where they can share information about local businesses willing to provide services and connect them with people they are connected with that are coming to san francisco. we look forward to continuing those efforts in a way that will deliver on the economic benefits, the thousands of jobs. it is not going to come at the stroke of a pen. it will require work and efforts, accountability. the event authority has stepped forward. in the time since we met in september, i think the project has come to greater definition,

both in terms of the bricks and nor are -- mortar at the port and what the events will look like on the water. that has helped the event authority build more detail about what they're trying to do. we will hear a lot more about that today. i want to extend my office's an appreciation for their efforts in engaging with the community, city staff, and with everyone that wants to see this event be a success. as you describe it, it upholds the spirit of the leila boroughs corporation -- local hire ordinates and despaired of their broad jobs plan. it is exciting, and want to see the america's cup be a way to kick this into high gear. i think this dialogue today will help us do that. i will hand it over to laura luster. supervisor avalos: thank you.

>> good afternoon, supervisors. my name is dr. laura luster, a consultant to the america's cup event authority. i have been assisting them with crafting the america's cup workforce development and small business inclusion planting. this plan was developed by the event authority in partnership with the office of economic and workforce development. the san francisco human rights commission and the office of small business and other city departments contributed as well. in addition, the event authority got input from communities, business, and labor organizations, all of which provided a very valuable feedback. the entire process over the last several months has produced a solid outcome-driven plan that i believe will put san francisco residents to work and ensure contracting opportunities for

local small businesses. this afternoon, i am going to provide you with a brief description of the main elements of the plan and i light -- review its strategy is and highlight outcomes. there are two primary components to the plan. the first is the small local business inclusion portion, and the second is the local resident hiring portion. speaking first about the small local business inclusion, the event authority worked with the san francisco human rights commission to establish a minimum goal of 25% participation for construction at subcontracting, and it established a 30% for all event activities. all of the vendors and service providers and suppliers. the event authority is and will continue to complete very

proactive steps to make sure that the san francisco business, in general, and small local businesses specifically know about, have access to, and actively participate in the event authorities contracting processes. the event authority is engaged in ongoing business outreach, and it is connecting with firms that reflect the entire makeup of the city. to date, they have met with over 40 different neighborhood merchants associations, the ethic -- ethnic chambers of commerce, stakeholders, and they have established an easy online portal, onto which over 800 businesses have already registered, so the event authority knows about them and their interest in working with the america's cup event. and moving forward, they are creating a procurement planting that is going to identify all of the contacting opportunities, and i am particularly pleased we

will include goals for minority and women-owned business participation. they will also be hosting a vendor fair in which small businesses are going to be able to find out about the opportunities and connect directly with authority staff. the office of small business and the san francisco human rights commission have been assisting the event authority in connecting with san francisco small local businesses. in addition to these steps, the event authority is going to be utilizing social enterprise agencies to involve community organizations in the vending and service opportunities. they are working with the san francisco department of the environment to promote the utilization of local green businesses, and they're working they'resfmay to really engage san francisco's manufacturing sector in meeting america's cups needs -- working with sfmay. i believe the event authority is off to a very small -- a very

positive start. as a contracting opportunity becomes more clearly defined and the procurement plan is finalized next month and as we get closer to the summer, there are two week-long events that will take place in august, these opportunities should begin flowing to local small san francisco businesses. supervisor avalos: if i may stop you for a second. just for clarity, when we say local business enterprise, we're talking about local san francisco business, correct? >> we are talking about local san francisco businesses. supervisor avalos: in the event authority sees it that way? >> yes, absolutely. in construction, their two pier projects, building a back wall on pier 29, and repairing pier 32. the bid document is in process for the projects, requiring advertisement and outreach to lbe. this is certified san francisco

human rights commission with the general contractor has been selected, power engineering. they completed all of the requirements and have committed to meeting or exceeding the 25% lbe goal. power engineering is working with the event authority. and the san francisco human rights commission is at the table. we will be hosting a pre-bid meeting in a couple weeks. we are actively of reaching to lbe contractors to engage them in the bidding, -- process and get them on board. the work on pier 30-32 will begin in april. the other work habits much later on, perhaps next year. now we get to accountability. the event authority has put in place accountability provisions. the plan includes contractual obligations for small local business inclusion for vendors, service contractors, and

suppliers, with contracts of $150,000 and more. for the construction contractors, $350,000 and more. these achievements will be monitored by the san francisco human rights commission. and the event authority will produce quarterly reports on progress. as importantly, the event -- as the entity that is going to be signing the checks, is pressing upon its vendors, suppliers, and all those who wish to do business with the event authority that local small- business inclusion is not optional. it is the way the event authority is doing business. it is the way the vendors and suppliers must also do business. supervisor avalos: and just a question on that. perhaps you are getting to it next. if the authority does not meet its lbe goals, what is the consequence? does not meet the 25% lbe and

the 30% threshold, what is the consequence? >> well, the consequences, of course, are that they are going to -- they are not going to succeed in delivering to the city and county of san francisco what they have promised to deliver. the work force component of the plan spells out the local resident hiring obligation that the event authority contract it the vendors and suppliers must meet. much of what is included in the work force component mirrors city practices and requirements. however, particularly for the construction work, the event authority, which is not bound by the public contacting code, is strategically leveraging its role to exact some additional resident hiring benefits, and i will go over those in a moment. the majority of the hiring opportunities are going to cut from event authority contacted vendors, service providers, and

concessionaires. the goal for these contracts of $150,000 and above is a at least 50% of all new entry-level hires roby san francisco residents. these firms are contractually obligated to fully and proactively participate in san francisco's first source hiring system and work with the oewd. in advance of hiring, they're expected to submit jobs projections of tohires, provide descriptions and announcements, and provide a single point of contact for oewd be there to oppose their jobs on hiresf and ac connect, and there to assist oewd to track their hires. the oewd will be conducting a city-wide outreach to ensure that access to opportunities for residents from all san francisco neighborhoods have access and information about these jobs. oewd will m