the agreement and assess a penalty of $5,000 per contract for failure to do all these, this is where we get into the steps for failure to do all the things they would need to do to achieve the lbe goals. one of the best things as things are marching on, we had our first bid walk for pier 30- 32. because of the combined efforts and the event authority, there were 100 firms who are interested in subcontracting opportunities on the project. many of whom were certified local business enterprises here in san francisco. on page 19, it is the same type of penalties that again, the human rights commission has been authorized to enforce shed the

non-construction businesses, and this is for the event activity. this is where we get into the concessionaire and people like this. if they are not completing all the things they're supposed be doing, hrc has the authorization to enforce the agreement and assess a $5,000 penalty. supervisor avalos: why did we not go ahead with -- not being the goal for the contractors? >> it is a similar question as to why it did not want to adopt the local hiring policy. part of it is because the local hiring policy is set up for public construction. public-works construction. it is set up for a hard bid and

low bid in vernon. despite the event authority being able to operate this as a private project, was not -- did not want to take on the risk and having basically the penalty structure exactly like the local hire ordinance. nor did they think that it was required. one of the reasons it was not necessarily being required is as the private owner, they're not obligated to simply operate in a hard bed in burma and or historically low bid and firman. they have a lot more latitude to include elements of their assessment of the contractors they are selecting and of the -- in reviewing the bid. they cannot operate with a lot more confidence -- they can

operate with a lot more confidence. they can select contractors who have the ability to meet the local hiring goals that are in the workforce plan. supervisor avalos: we had contractors apply for bids for america's cup? >> yes. the general contractor is power engineering. this is only for the first project, pier 30-32. the other project which is the construction of the end wall is not something -- it is a much smaller project. it will not take place until early next year. 30-32, that is the larger projects. that project went out to bid last year. the general contractor was elected not too long ago. and has advertised bids for all

the subcontracting opportunities and that is what that what was about. supervisor avalos: has that contractor also been subject to our local hire ordinance through other works projects in san francisco, to your knowledge? >> that is an interesting conversation. i am not sure if they have been subject to the local ordinance. they have been working with oewd on the export-oriented -- exploratorium pier project. one of the things that was impressive about this general contractor is the came in the door saying, we will meet all the 20% local hiring goals, including in the specialized trades and they had already hired 15 different city build academy graduates that are working on that project. they intend to move over to the

pier 30-32 project and have included their numbers in their projects which they submitted. >>supervisor avalos: it is important to make a case. it looks like they could apply their services for other projects in san francisco. we would have a different standard for america's cup. it would be good if liquidated damages would apply to both. >> there is someone who will talk much more about liquidated damages than i can if we want to continue. i do want to say one of the things that america's cup wanted to do in this agreement is to get to the heart of making sure that citizens got opportunities on the project and if for any

reason there was an inability which they do not anticipate from power which is 75% of the work already, we have the projections for 75% which we shared with you. what would happen is there would be a specific contribution to the pipeline. and in terms of embracing the local hiring in san francisco, san francisco residents would get opportunities to get in -- apprenticeships, to be trained for future work or to work on other projects. so that we were -- this event would be making a significant contribution. at the same time, knobby opening itself up for further brisk --

not the opening itself up for further risk. john " we have gone from 10,000 tunnell gipenalties. i am not sure we have all the references to the change in workforce development and local small business development plans. on page 9, the fourth bullet. it says oewd shall assess penalties for failure to complete the steps to achieve the hiring goals. we have discussed moving that from steps to a meeting of the hiring goals. wondering if -- we want to make sure that every part of this document is going to be -- conform with the change. >> that is probably part of the executive summary and it is possible it was not brought into

alignment with the language on page 21, which is quite explicit. supervisor avalos: as the event authority agreed? >> absolutely. all the way to the top. >> we could approve this and the event authority would not say, this is not part of the agreement. >> mine understanding is once this document is an attachment to the dda, it is binding. >> i could ask a question for our council. the question is about our dda has language about how the workforce development program will be carried out. is this binding, the language that the resolution refers to in the dda, the dda refers to this. with this be binding in making sure we carry out the goal of

the local hiring as pertains to the america's cup? >> the dda incorporates the workforce development plan into the actual documents to a becomes part of the dda and the -- becomes an enforceable document. the remedies are those specified in the applicable underlying ordinances or those to which the authority has agreed in its negotiations with the mayor's office. supervisor avalos: i am assuming those negotiations, the agreements are in this document. that is my ultimate question. >> that would be my understanding as well. supervisor avalos: thank you.

supervisor chu: thank you. we have gone through a number of the adams. let's return to you, mr. rose. >> good afternoon. in terms of a brief overview of the document presented by mr. martin in terms of the response to the recommendations, we have three of our nine recommendations we did not see in the documents i want to call that out to you. one of them was the intent was changed. our recommendation is requiring the return of pier 29 immediately after the event. if it was not going to become a longer-term venue. when we read this recommendation we believed it could be a longer

term venue. there was nothing to address in the timeframe when that would be returned to the port. president chiu: could you ask the port if they could address that point? >> our recommendation was to return pier 29 to the port immediately upon the end of the event. >> i believe mr. martin testified the dates had moved toward and there was a commitment to move it quickly. the date was this calendar year. arbour entering a question about what to do with those peers faster. president chiu: does that need to be in the dda? it was not enumerated in the proposed language changes.

>> would you mind asking the city attorney or mike, whoever? >> through the chair. i do not remember whose question this was. as noted in item six in the chart prepared by the mayor's office, there will be a new schedule which is attached to the dda and inc. that provides the dates by which the court -- pork should deliver and the date by which they should be returned to the poor. >> it refers to piers 19, 19.5, and 29. >> we would amend that as well. to the port. >> we have come to an agreement to taking the development rights out and that would include the interim leases. we would like to talk about this

issue that was not part of that discussion. we will try to come back with a meeting. president chiu: is there anything -- anyone from the event authority who thinks that would be a problem? we do not know what will happen. >> there is a challenge that we have to review with them. pier 29 is part of the america's cup village. as i talked about with the other venues, they were able to assess the break down and timing needs to have. it would be premature to say when they can get out without reassessing what they have to do to get out. if we could have the benefit of that time we could report back. president chiu: how long is that going to take? >> as soon as we can engage in the discussion. would your next meeting -- that is next tuesday. we will have an answer before that. president chiu: ok. supervisor chu: thank you. >> there were two of the

recommendations we made. one that i did not see in this response. one was to required to it -- the event authority to retain piers 26 and 28. the reason is the dda reads that they can be returned to the port. the port would lose the rental revenues. i did not see that in those recommendations. the other one was to -- the with the proposed dda works, they have a basement that was established in the dda. there is a delay and no escalation in the rents by c.p.i.. from the end of the venue

leases to the beginning of the longer-term leases. >> i will take the first one. on pier 26 and 28, they negotiated that options so they could take stock on whether or not they will use -- move forward with using those in the interim. one of the options is interim leases at 26 and 28. they're motivated to keep those locations to burn off their rent credits for the dollars they spent. while we did not have a firm agreement now, it is something that we think there is a self reenforcing dynamic that would allow those to be kept by the event authority if anticipating long term of bell -- developments at those sites. >> as to 26 and 28 in the starting rents, 26 and 28, we

had them assessed in terms of their current value and prospectively, our judgment from that analysis and from our engineering staff are twofold. one is the valuations that we derive from a real-estate economists supported by a team of historic architects and cost estimators is our valuation that we believe is a long-term lease value is slightly under $6 per built square foot. we think the $6 is a fair value. it might even be generous based on their current value. the second comes from the assessment of our engineering staff, which projects these with a ten year lease for life. it assumes there is no more will prepare that would occur. if the long term lease starts at

a later time like fiber 10 years in the future. the current assessment of their condition is the facilities are deteriorating faster than the accrual of cpi or other values. we did not think it was necessary or appropriate to index mechanically with inflation. that $6 will be fair within a 10-year period. supervisor chu: thank you. supervisor campos. supervisor campos: if i could get you to go back to section 7.3 h to i. the issue of the 15% subsequent assignment and sublease. i have heard a different times it was not included in the dda

but as was noted before, it was included in the original host and the new agreement that the board of supervisors approved in december, december 14, 2010. i wanted to make sure that is an item that is identified by something that has been left out of the response. supervisor chu: thank you. we have asked a number of questions of support staff, the oewd staff and a budget analyst. we have heard a number of presentations. we do have a number of people who have come out to speak for public comment on this item. what i would like to do is open the item up for public comment and we can return back to the

issues at hand. i will call from the cards i have received. eddie on, jackie fund, orion willis, josh, if you hear your name, please line up. michael williams, patrick kim, ramon hrernandez. each speaker will have two minutes. we have a few that stepped out of the room. they should be back soon. i would like to ask permission to give some statements. supervisor chu: you can do so if that is from your two minutes. >> this is a statement.

i am the executive director of the a. phillip randolph institution. thank you for ensuring the america's cup event will be economically feasible for the city, beneficial for its residents, and for an overall great event. i support the america's cup but even more, i support the adoption of the local hiring language that is proposed for the dda. i look forward to not only helping to construct and prepare for the event but i will -- look forward to preparing to participating in the event as well. i would like to make a statement on behalf of myself and my organization. i would like to ask if you would support signing of the basic craft agreement that was discussed earlier.

i would also like to ask the porch in the proposed amendment to the dda that contains the local hiring language, we do want to see the america's cup happen and we are willing to find a solution. we're approaching deadlines to finalize this agreement. if this item is continued, i would like to finalize the local hire issue so we can appreciate and enjoy this event. thank you. >> good afternoon. i represent iwu 175. my members guard the shipping terminals as well as the cruise terminals in san francisco. in april may of 2011, local 75 was hired by oracle racing to guard and protect their equipment at pier no. 80. this would -- was welcome new

jobs for our members. there were no incidents reported in this two months. june of 2011, or locals dismissed for a recent -- was dismissed for a reason. when there is no cargo ship at the facilities wide open, there is no security at the main gate or port of entry. the gates are left open. a tractor-trailer with explosives could be driven in, explode, blow of the ships on the dock, and destroy the pier. that would be devastating. i am a native of san francisco, born and raised. the union has been in talks and they have been in -- committed to hiring. there is a problem now. there is a security board that needs to be addressed immediately.

we're asking the pork to acquire -- require america's cup event authority to employ security at the entry points of pierre didi as soon as they signed their lease. thank you. supervisor chu: thank you. i will call a few more names. david santorey, javier florez jach berkowitz, john platt, paul mcdonald, stephanie dalton. >> a lot of issues have been discussed of hard work. one of the issues we worked on for six months now is local hiring and prevailing wage. there has been progress but this is the nagging stepchild of this project that we cannot seem to resolve after 16 or 17, this might be the 18th revision of

its workforce plan. has no support in the community. we have heard from dozens of folks who want to use the local hiring policy. moreover if you can go to the overhead. i will give this a shot. right there, i want to go back to the day when america's cup agreed. there is some great points are returning to this original document. in the original document can see highlighted america's cup open plywood regulations. that is the local hiring a law that passed the week prior. the community's local hire urlacher it is what we want and proposed in a change 24 hours ago. we got a change five minutes ago. 24 hours is a lifetime in this process but we proposed a community amendment to the

development agreement. you may or may not have copies. i will provide them to the supervisors and the committee. this is what we want. this has support of community members. we have that it with our partners in labor. we feel strongly this is the way to go. there is the basic craft from a proposed by the unions that are doing the work that will incorporate the mandatory local hire. we called the city's policy. it is about results. this work force plan, i got the newest copy. it has commercially reasonable steps on page 20. it has a bunch of stuff. it doesn't make sense. we proposed an amendment. if we're not going forward, let's fix this. that put this on the list of something we fix, whatever we do. thank you. >> good afternoon. i worked as a program counselor at the mission hiring hall. we have always supported local hiring and prevailing wage

across the board. one of the main things i do have is i work as a liaison between our out of four construction workers and the contractors that would work with them are trying to meet their local hiring goals. the problem that we run into is that on the contract they're working with if there is language written into those contracts that does not mandate, they hire locally, it is just goals or good-faith effort or whenever. they never hit those goals. that being said, we obviously strongly supports this proposed hiring amendment. -- be put into thed dda. there is a bright way and an easy way to do things. we should go forward with the right way. thank you. >> good afternoon.

there has been a lot of revisions to the workforce development plan. i think some of the revisions are taking a step in the right direction. unfortunately it is not enough. supervisor avalos pointed there is a lack of change on consequences for just failing to be part of the steps to monitor local hire. that was characterized as part of the summary. it goes to show why we should incorporate a local hiring amendment into the this position development agreement to make it legally binding and to make sure it is something we can be clear about, the consequences. the hiring percentage themselves. also the basic agreement as expressed earlier has been a critical way to get to the local hire ordinance. it is the cleanest way to do it. until these issues are resolved, we ask again that this be kept

in committee so that local hiring is guaranteed for san francisco residents on the america's cup event authority predicts. thank you. >> good afternoon, supervisors. our present the industry association. they wanted to give it their 100% support. i have done consensus reports for 1000 districts. i would like to bring out one thing. david chiu was kind enough to come and cut the ribbon at the murrah building. we talked about allocating 2200 of those jobs to veterans. it is not enough to say that we're going to give local hiring priority here. that does not include veterans. local hiring including veterans must be written into the dda.

it would help funding efforts to say they could receive tax benefits for hiring each and every veteran, a vietnam vets or younger bets coming back from iraq and afghanistan. the veteran research center is repaired and ready to go. they have computers and the staff over there now. what i would like to see and what the community would like to see is to write specific sent to this local hiring program that include hiring veterans. veterans it helps in the fundraising, and helps cushion the deficit problem that you talked about earlier, supervisor, and in addition, is good business to hire veterans. there are more than 100 jobs in the military that translate into civilian life, and that includes the trades. i would