expand their market and ask the port to consider an amendment of the agreement to last year. it will enhance tide lines ability to attract investors and grow their fleet and businesses. they believe these changes will allow them to double their revenues in the near term and double their capacity providing services to the port. the proposed amendments are detailed in the staff report but it's an attention of the original term. they asked for an additional five years so it's a ten year deal with a five year option. they have asked -- the port has asked and they've agreed a license fee of $300 per month or 7 percent of sales which ever is greater. we had

attempted to do that $15 per landing but it's easier administratively to make it a $300 per month fee. tide line, if they get what they're asking for, will have to provide a minimum of five paid landings per week to a combination of the three port facilities and most importantly acquire a new verse he will. they have one vessel right now and they'll be able to handle more than 600 passengers. if they are unable to get the new boat or they are unable to meet the minimum standard of average calls this

agreement will be null and void and return to the original term. they have established this market and have financing in order to buy a larger boat and provide more service to san francisco. last week we were able to go to commissioner moyer and i were able to go on tour on their boat. i was in my suit and tie. i didn't get a splash on my. an momosa would have been nice. we're excited about the opportunity. i think their ask is fair. they want to invest a lot of money. boats are not cheap, so i'll be glad to answer any questions you have and the representative of tide line is here as well. >> will you introduce captain and taylor. >> they're the two principals. >> tide lines are founded by

captain taylor lewis coming to the podium. >> good afternoon commissioners. we like to thank the city for its work and effort in helping us get these amendments on the docket. we know how much time and consideration the staff has to put into this so we appreciate the assets and time. any questions we can provide, we're happy to do so. >> thank you. >> comments. >> so move. >> resolution. it's a resolution. resolution number 13. >> we just need a motion. >> make the motion. >> we make a motion first. >> so moved. >> second. >> okay. public comment. i missed one commission meeting and i've forgotten all of my protocol. >> director moyer, veronica

speaking. i'm here on behalf of the captain ship way who regrets that he can't be here and he had back surgery and he's not feeling well as well. we're very happy to be here in support of this amendment and we thank the port staff for working with tide line to develop this amendment and bring it before you. we want to let you know that tide line has been a union company from the very first day that it started operating. and as you know, maritime union jobs are hard to come by and over the last year since you approved this agreement, we've had five members working for this company and with the growth potential and the fleet that is planned we could see those numbers glowing to 15. so we are very strong in support of this amendment. captain ship

way tells our headquarters people in maryland, he explains this as a start up. we're fully behind this start up because we know it's going to produce jobs and we're going to be patient and work with this company and give it every opportunity that we need to provide the cruise. our union has done a great job with this company. it's great being in business with a president that sometimes skate boards to our meetings but it's very refreshing and we're very excited for this opportunity so thank you very much. >> thank you. with or without socks? >> is there any further public comment? any comments or questions before we take a vote from the commissioners? >> all in favor. >> i. >> i.

>> resolution 133 has passed. >> information deports end year report for fiscal year june 2013 and the cities local hire program. >> good evening commissioners, ford. deputy director administration and finance and this evening i'm going to present to you our contracting report that goes over the activities contracting -- contracting activities for last year 12-13. the scope of the report you have is for port

contracts for professional services and construction. we go over the use of our executive directors delegated authority. local business enterprise subcontract, the lbe program and the awards. the local hire program results. i'm joined by jewel who is with the city as contract monitoring and he's a representative of the port and he can answer questions about the program and we have a special guest, mr. pat who is the director of the city bill program and he's joined by ken who is a work force compliance manager. as you recall at the second quarter report, there was questions about the hiring program and we thought that was a good time to discuss the program and its requirement and how it's going. so as a reminder on delegated

authority, it stream lines the contracting process and is consistent with the rules of other city departments and allows our executive director to relate works under $400,000 and service contracts for $120,000. our executive director did sign four contract under delegation, all for professional services. one was four coaching and the other three were for the 150 anniversary. i would like to point out that the 150 anniversary, all three of those contractors are micro lbe's so we've had great success with our lbe program here. i like to note that due to an administrative team, it went out. we've changed our protocol so that won't happen

again. just as an update for those newer commissioners, the lbe program was established to expand city contract opportunities for san francisco's small local base companies and it's based on gross receipts. gross receipts meaning from micro lbe, construction is -- i'm sorry -- construction is 7 million and 14 for lbe. it's $2.5 million for lbe. prime contractors are submitting bids for professional services receive rating bonuses and for construction contracts receive bid discounts. the cities contract monitoring division sets an lbe sub contracting goal for applicable contracts so that there's lbe consulting

opportunities and they set these goals based on the scope of the work and the available pull of lbe. those goals must be met by bidders to be deemed responsive and they must meet the goals by the end of the contract. i'll leave it to mr. mulagin to describe the local hiring project. for the awards we had ten contracts that were awarded. the total amount of 17.4 million. of those six were within 14 b requirements. they have a total requirement of 24 percent, lbe which is quite good and we will see better results next year as having high participation requirements. for those not under 14 b two were under the

fire. that was an unusual circumstance because that was led under emergency prevention and the others were small. awarded to two small contractors under $50,000. one was a micro lbe. in terms of spending on contracts last year. we had a huge year in contract spending as you'll see going up and down the water front with completed projects. $12.9 million to lbe sub contractors. this acquainted to 18 percent of the total contracted expenditures to lbe. it's a million more than the cmd goal which require -- again, they'll determine compliance at contract close out, but we're doing a million dollars better than the goal. it's 2 percent below the port commission goal of 20 percent.

as needed contractors we're trending very well. 22 percent of lbe sub contractor environmental related were strong at 31 percent. engineering work was tracking very closely to the goal. we're working to remedy problems in the economic projek which is detailed in the report. doing these reports quarterly and on an annual basis is a good compliance for the staff. it allows us to see early as the trends look to the intervention. it's above c and d goals f. 17 percent verses 16 percent. it was an unusually low year for professional services spending to lbe. if you look at all open contracts spending to date we're at 41 percent lbe participation and that indicates that looking at contracts spending at any point in time gives key results

because lbe are used later. most contracts are -- we'll provide more goals for our services before that contract is closed. for construction, construction is turning above the emd goals. the vast majority of construction goals are on track. maintenance contract has cmd review and have difficulty meeting their requirements. to highlight our results, the contracts that were let last year have accumulative goal of 20 percent. it's very strong. we made $12.9 million the payments last year to city certified sub contractors which is a record year. most of our contracts

are meeting their goals and the compliance is great for staff to stay on track. we're looking for new opportunities if our lbe program and we're seeing strong results with the public relations work. so with that i'm going to turn it over to mr. mulligan to describe the local hire program. >> thank you. the office of economic and work force development, our mission is to support the ongoing economic vitality of san francisco under the direction of mayor lee, oewd provides work force development, business attract and attention, neighborhood commercial revitalization and business facilitation and development planning. city

building is within the work force with three main objectives. to maximize employment for san francisco resident in the construction industry and support training through opportunities for the purpose of job placement and assist contractors in meeting their requirements. mandatory local hiring ordinance. san francisco administrative code 6.2 g applies to contracts for san francisco, public works at or above $4,000 so that's the flesh hold. 20 percent of total work hours by trade for san francisco resident in the first year with a 5 percent annual increase over 7 years up to 50 percent by trade. and throughout the duration 50 percent of all the hours per trade by san francisco resident. and the percentage

is determined by the date of advertisement not award. so you can see on the left there's a brief over view of the 7 year period. the third and six year are identified as review periods and i'll get into that more later. so the penalties associated with the local high ordinance are equal to the number of hours deficient in each trade multiplied by the wage of that trade as determined by the california determine of industrial relations. contractors and sub contractors are liable for not meeting hiring requirements and if a project is deficient in any trade, dowd will work with a contractor to provide a plan. so with that there's off ramps and exemption. if a contract

can't meet local hire requirements, penalties may be completed by sponsoring a new apprentice and retaining those apprentice or they may receive off site credit by employing san francisco resident on non covered within the bay area. that's exempt in the local requirements if it's less than five percent of the total work hours or included in oewd list and trades. there's a short list that includes marine pile driving, crane operator drivers and the tunnelling craft and stainless steel welding and connecter, utility workers. those are actually the exact trades under the ordinance. so it is currently in its third year. so per the ordinance

it's under legislative review and that means that during this period up to march 25th the board of supervisors can make any adjustment to this by single vote by resolution. in anticipation of this mayor lee makes recommendations to the ordinance. the committee represents are 3. general manager of san francisco public utilities and mu ham mad the director of san francisco of public works. there's three labor representatives, bob, executive secretary treasury, the northern california region council, and oscar and tim who is the secretary of

international brother hood of electrical workers level six. there's three contracting represent tivens. tim, president of limb incorporated. bob of president brothers general contractors, jess peterson, president ceo of web core builders. there's three community builders, con, josh with bright wine defense project, and james bryant, regional director. i believe james is with us today. this body is currently meeting regularly to formulate recommendations to the mayor for consideration as the policy is currently under review. data city wide for projects posted with a 20 percent requirement and a 25 percent requirement and broken down by city department. there's total hours and then on the right

apprentice ship hours. if you look under the 25 percent both for the port and mta, there are no reported projects to date that were advertised or awarded with the a 25 percent requirement. that's why there's that gap there. and then specifically to the port, we have break down by trade for port projects and you can look at the total hours by trade and apprentice works. there's others -- i think there was under 5 percent. there's a reason for that lower percentage. also for pile driving because of the marine pile driving exemption, that's why that's under as well. some

highlights that was stated. valued at 79.4 million that are subject to the local hire with 20 percent. pier 27 brandon street warf, 23.5 and pier 50 le sub structure repairs, all four projects have satisfied local hire are on track to meet their local hire requirements and conditional waivers for off site credit and apprenticeship have been utilized. the pipeline to meet these needs for construction workers are through the apprenticeship program was founed and it was partnered with city college of san francisco, trade apprenticeship program. and its eligible for college credit and financial aid participating in this program. the minimal

requirement are high school diploma, ged, valid driver's license and the ability to pass a drug test and those are industry requirements and those aren't the ones we impose. their curriculum is a general training and hands on training and construction safing, and blueprint labor and life skills, cpr first aid, scaffolded stairway confined spaces and fall lift and traffic control. and then our apprentice ship partners are the carpenters, cement maceers, sheet metal workers and we support the training program founded in 2009. it's an 18

week curriculum, non credit and partner with city college and then local cbo and construction employers. the minimum requirement are high school diploma or ged and microsoft office and quick books and introduction and scheduling contracts and lastly employer partnerships. web core, dpr, camp lemon and company, engineering lab tors and mechanical. any questions. >> any public comment? >> commissioners. >> not yet. >> that's very comprehensive. no questions from the commissioners. thank you. >> i do have one question.

that first slide regarding where the three year period, the one to seven year period, what is the one to seven year based on meaning we're at three years now and we're at a certain percentage so the goal is to get 50 percent over time or -- >> this was a legislative decision. i believe this was a compromise. there was a lot for 50 percent and there was a threshold held out. i think there was a threshold that people held. there was a push back in the industry saying that was unreasonable. they figured there needs to be time to meet this growing demand in the legislative requirements and that's why the review period was built into it so we

can assess it in the third year to see if do with he have sufficient pipelines. what is the direction of this industry. this was a piece of legislation that was put into affect during a recession period where construction work hours were off by 50 percent so it was easy to meet the demands initially. they went to 35 percent just in the first year of i implementation. as we have this rapidly expansion market and the projects are coming by the ordinance, it's dramatic. we're looking at this and we're taking market analysis to make some comprehensive recommendations towards construction work force. also taking into consideration the city's provision for first source hiring which aren't as

restrictive but covers most private developments throughout san francisco. >> and have any penalties been implemented so far? >> the off ramps are very generous so we've been able to utilize those to date to avoid liquid dated damaged. in the third year they'll be difficult to avoid in some situations but employers have every opportunity to utilize these off ramps. our goal is not to penalize contractors but put san francisco back to work. we tried to avoid liquidated damages. we work closely with the city economist. we can see there's been cost impacted the city associated with this city. >> all right. thank you

>> thank you. >> do you have someone else presenting or that's it. regarding the report, i want to thank you. it has been a great year and even though we didn't meet our self imposed goal, we're close to it and i want to thank director moyer and the entire staff for taking these goals serious and trying to make sure that we are doing our part in making sure san francisco are working so thank you so much. thank you. >> item 13 a request one port commission resolution 12-92 endorsement of the za 1,230 term sheet and three authorization to enter into a

negotiation. portland between pier 28.5 and 23rd third street 4110 and block 4200 zero located at 21 and illinois street. >> good afternoon commissioners, brad benson, directors here to present. this is going to be familiar to the commission. port staff presented a term sheet for this important transmission project back in november of 2012. we're back before you today with a revised term sheet and we've been negotiating with our partners represented here with jackson. and have some new public benefits to share associated with with this term

sheet. i'm going to fly quickly through the presentation because you've heard it before but slow me down if you have questions or i questions at the end. >> you can't leave. we have no forum. sorry. >> pg and e maintains the transmission serving the city with the exception of the transbay cable. most of it coming up the peninsula. they have proposed a new 230 kv transmission line to provide

redundant see to downtown san francisco. you remember there were rolling blackouts that affected downtown and we had reliable services for the cities and supervisors got involved and we're looking at a number of transmission upgrades to the city and endorsed upgrades and this is one of the most important upgrades. right now downtown is served by kb system that runs from the patero substation to the embark substation and there's major concerns if there's an earthquake that happens that that transmission line can be severed and it will take some time to get the power surface up to downtown san francisc