>> commissioners, this is a continuation of an item that was on the previous calendar and you asked it to the cal endar on item. those are subject to our development agreements and our equal opportunity policies that are components of those phase one and phase two development agreements. the purpose here is for the staff and for the developer and it's consultants to really report on the progress, talk about the lessons learned so that we can continue to either meet or exceed the goals. i would like to ask the project manager for hunters point to present this item. >> thank you director. good afternoon, my name is -- project manager for the hunters

point shipyard. excuse my voice today. today as you know we'll be providing the community on the workshop on the local contracting for the shipyard project. i will quickly summarize what the project is. go over the role of the office in community and infrastructure staff and contract compliance as well as good faith efforts. we'll give you an update in the contract of hiring numbers of lot 51 which just got under construction this july and give the shipyard the status report on their hiring effort and contract. i want to produce my co-executive, if you don't mind, stand up. danny. butler

of butler enterprises managing the construction assistance program and mr. george bridges from contract compliance of the agency, oci ishs and the chair of the citizens advisory committee. hunters point shipyard is one of three major approved project on the shipyard and candlestick area. it provides over 12,000 homes 32 percent which will below market rate and 250 acres of parks including complete renovation of candlestick point state park. the project will be developed into two stages having the first phase approved in disposition in development agreement in 2003 and second phase 2010. this will produce

12 thousand construction jobs and provide $90 million in community benefits. the project broke ground july of this year. the cda will ensure policy that a number of worker will work on the project. this neighborhood revitalization ideas that deepen local capacity that california training opportunities should be located in the project area. with regard to the policy, the dda work goals and hiring goals for construction work are in the employment contracting policy. the dda contracting goals for professional services an construction contracts are contained in ocii small

business policy. both the policies have 50 percent goals for the first consideration for project area businesses. second, san francisco businesses and residents and third for contracting only, only any sbe roles will satisfy the goals. there is no third goal preference for hiring. both make the effort to meet these goals and provide first consideration. both the bayview hunters point the policy have requirements and processes for the developer and contractor to follow. this will get into the role of the compliance and good faith effort. it reviews the monetary -- on our website

other government certification for our goals. it's our obi policies towards the certification process local hiring and work force goals. compliance reviews contracts and the role of the assistance from project management on going oversight of contracting and hiring. the developer must make good effort to achieve the goals in this policies. the good faith effort to design and maximize and standardize the businesses so local economy benefits including efforts of bidding our contracts to the extent feasible. conduct affirmative outreach to make sure opportunities are advertised and holding questions to bid opportunities. following up with sbe's and providing their

bidding capabilities. the good faith effort also includes assistance to identify any issue that would have caused this are bid to not be competitive to bid their bidding in the future and bid scope information is required to be tract to be sure they are on sbe projects. not part of the good faith efforts is the insurance of bond and assistance to insurance program or oh sip. this is through

>> 78 percent contract with spe with $24 million of contract spe. on the phase one vertical process. more than half of them are s pe. the general contractor. for the local san francisco firms and approximately. these lots

including construction opportunities and all the trade areas with plumbing and electric. these have achieved participation. roofing. sheet metal and glass. only about 50 percent of 51 is complete it's progressing. ground breaking excavation. rating skaefgs 18 ensure. the footings has been poured. it's followed good faith efforts

steps. we expect their numbers to improve since it's not complete. across the 2 blocks so far it's achieved of that 17 percent of item a: authorizing the issuance of tax allocation bonds for the mission bay south redevelopment project area in an aggregate principal amount not to exceed $70,000,000, and approving and directing the execution of an indenture of trust, and a bond purchase contract, and approval of other related documents and actions, mission bay south redevelopment project area. discussion and actionn resolution no. 52-20133 page 3 of 3 bb update on the status of hunters point shipyard local contracting and construction workforce hiring; hunters point shipyard project area. discussionn cc final workshop on the long-range property management plan pursuant to section 34191.5 of assembly bill 1484 'redevelopment dissolution law'". discussionn dd workshop on the streetscape master plan, signage plan and major phase 1 application for candlestick point; candlestick point and phase 2 of the hunters point shipyard project area. 1234 #2450u8 almost 14 percent are minority owned businesses. now switching to the work force hiring slots for construction, part of the project is 15 percent complete. the subcontractors have been following all the required good faith effort steps with only 28 percent. with that i want to invite mr. danny cook up to provide the commissioner with the report from the developer and after him is butler with

the construction program and how it's to be more competitive on the shipyard. thank you. >> thank you. i'm not sure i want to use the speaker since you are so sick. good afternoon, director and president johnson. committee members. my name is danny cook, the executive vice-president. i have worked primarily in the san francisco bay area since 1980. in fact i'm sort of returning to my original campground because my first project was a united states postal service general mill handling facility on evans. i have also worked with the

former redevelopment agencies on the yerba buena gardens and the children's center. i would like to introduce some of my colleagues that have been involved on blocks 50-51. i would ask them to stand as i call their name and stay standing. cheryl smith is the director of community affairs, she is ably assisted by her project manager terry mitchell and patrick banks is our site development manager for blocks 50 and 51 which is a subject of our discussion today. thank you. robert sub she has been selected as the correct county -- contractor for blocks 51,

50, and 54. the blocks are being awarded to 84 percent. there is still some contracting to be done. 53, 54 has just been bid and has 0 awarded yet. in spite of complying with our good efforts, we have not yet met those goals as outlined. we take the responsibility very seriously and evidences with our commitment on our professional hiring that we had a 78 percent grade bond. we are committed to improving the vertical construction participation goad forward, but we must learn from block 50 and

51 because what we can learn there will benefit us in the future. blocks 50 and 51 were the first vertical construction projects out of the gate. for various reasons, they were bid, but did not proceed. we feel that there was this created a bit of complacency in the marketplace. and there was fear that there was another bidding exercise and subsequently did not go forward. we believe the fact that construction has started, the mitigates are concerned. the lesson learned for us is that schedules communicated must be schedules delivered. our communication process on the multilayered

facet of it really needed to be improved. we have had discussions with all of the projects stake holders, i have had many meetings personally with the president of oeb yashey, our general contractor and we have insisted on improved communication, prebid, during the bidding process and most importantly post bid. we understand that our success is totally dependent by engaged a local work force and increased local opportunities. why the market is hot right now, and that serves to our advantage in different aspects of development. actualary --

it is a disadvantage to local participation. you may ask why, but the circumstances are that established local sb's we have created a legitimate business presence. are probably already enjoying the capacity with the work that is going on in this side of the city which is very act ever. so we will attempt to forward, accelerate the learning curve of those that need some business help. and bring them to viable business enter -- enterprises. we have

butler of butler enterprises of the construction assistance program and he will talk later about the specific of our program. now that we learned some of the issues on 50-51. what steps are we going to implement going forward? we have in instructed our general contractor to accept all bids regardless of whether they hit the profile of how they intend to contract because sometimes you receive bids with exclusion and exceptions and we intend to accept those rather than just exclude them. as i mentioned we have engaged butler enterprises as our cap manager. the first action i asked him to undertake was to go into 50-51 and create

a lessons learned on what was kurng -- occurring there and also work with oeb yashey the contractor and their local participation and the remaining work to be awarded. the group or workshop program and what i believe from what i i hear was received very well. the first one was saturday a week ago. it will take time to benefit from that. the process is set up and i'm moving forward. we have recently awarded blocks 56 and 57 to cahill construction. it has local knowledge and previous success with these programs. this is aligned with our vision of engaging multiple general

contractors and taking the benefit of their best practices forward to increase participation. we will also be on the street for another capital ground manager as additional projects come on and we expect to benefit also from similar best practices exposure. having had many conversations with scott smith from robert sub she, i don't know if he had a chance to get here. he's here now. i'm glad to say that scott has shown greater personal participation with 53-54 and i believe he's already seeing some successes of that working with local contractors on 53-54

who are not competitive on the 50-51 bid. working with robert sub she we have broken the packages down even smaller than 50-51. partially due to the fact that it allows you to do so because of individual buildings, but we felt that given the lessons learned from 50-51, if we break it further down, we can perhaps increase participation at the local level. we are looking for teaming opportunities between local sbe's and established companies to bring the local contractors, the necessary competitive bidding knowledge and management expertise. in addition to robert soeb she and butler enterprises and

cheryl and terry and patrick, i assure you that lawn ar management are engaged in the community and trying to learn from our lessons of 50-51 and implement procedures from the knowledge we gain from what their issues are and implement procedures going forward. we are open to all reasonable suggestions even as we try to meet our objectives and stay on scale. one point i would like to finally make is that while we are disappointed so far at the results on 50-51, we are committed to improve them. the fact is that we are very pleased with the local work

force participation which as reported is over 41 percent. we feel that the real opportunity even though they maybe out of area contractors engaged, the real message is that local residents are benefitting by this work. they are getting a regular pay slip and taking home money that can help their families and in so doing, we are not here necessarily to benefit from 50-51. this is a 15-year program. we depend upon the success of our local community neighbors to grow and to sustainable companies that can benefit us in the success

of our program. at this stage i would like to turn it over to defer. and i will be back if there are any questions. >> thank you mr. cook. director, commissioners, chairperson, johnson. my name is defer butler. we are a small business program management firm in san francisco. we have been in business for 15 years in the city and of that 15 years, 8 of the years of our headquarters has been in district 10. we work with a number of small businesses, dbe and lbe firms. specifically we were at the inception of the bay project and the redevelopment agency as well as others. we also worked

or four seasons, kaiser, medical office building, we are currently on central subway projects. we work on anna ray of different projects, our specialty seems to be master developments because it's so diverse on the challenges of getting the contractors to participate whether it's underground utilities, vertical residential, condominium or biotech. we are a dbe firm and we've been here for 15 years. i would like to say our company was pursued with lan ar to manage the program. we are excited about. we have been doing this for 15 years and we have never addressed a program to address the community and more importantly given the

resources to achieve it. i would like to elaborate a little bit more. we started in august in this cap program. within our proposal, we were required to have a construction liaison there 50 percent of the team of the opening of the office and we were required to have a project administrator. that was budgeted in the program which was very important to understand that our office is opened from 8-5 everyday. from 8:00 to 12:00 we have a professional liaison. in addition, when that particular construction liaison is not there, the office is covered from 11:00 to 5:00 p.m. with a project administrator and if any one has any issues or

blueprints, documents or access to computers or any particular needs that are there. that is totally different than what we've done in the past and it really sets the stage of the commitment of the program, the commitment of this agency. the commitment of the community and commitment of lan ar. and we formed a team for proper components to build capacity with local contractors. we were blessed to have anglo king on our team to do community outreach and help us to develop and flush out the workshops in our community and towns send management inc. which has worked with us for more than 12 years. he is brought on board

to assist us with the contracting and provide the assistance with the guidance of the local contractors and specifically bid review, developing rfi's and understanding the program and how it integrates in your bid to be able to present the project and so on. lastly we were able to bring in a partner called north cal fdc which is a financial development corporation to help us assist the contractors in access to capital which is very critical. there is a number of stages that are very challenging in developing a program like this to make sure that not only folks get an opportunity to payton a project, but more importantly succeed which is what this is really all about. so we've developed a comprehensive team and started rolling it out in august, the project already started but our team rolled up their sleeves and really engaged not only the community, not only lan ar or

the general contractor but the cac and everybody involved to get an understanding of what the challenges were and the expectations of the community and getting everybody moving to make sure there was participation on the project. i would like to add on the outreach, we do outreach for any prebids going out, we set up a system to an e-mail blast and we don't just stop there because some contractors are not that the technology sophisticated. so we make sure we educate them on what is happening on the shipyard. we do about 60 of these on the 90-day period. under our technical assistance, we

noticed in the door that 50-51 already started and local contractors were coming in the office already asking questions and the questions were what is on the controlled insurance, how do i evaluate that in my bid? what is the proper way to do it? we had to mobilize tmi and the rest of the team to put on an owner controlled insurance workshop within a 2-week period to try to give them enough time to identify how they were going to to incorporate it in their bid. there were 17 people that attended and it was an excellent piece. most of the time we like more lead time. this was to give them an opportunity to build capacity to participate on the project. since then, one of the things that we had to take a hard look at is that there are local contractors that are on 50-51.

we anticipate a number of contractors on 53-54. the contractors are getting contracts out there, we had to jump to get together our capital workshop. we needed to identify the issues, the contractors that are in cue and the ones within 90 days and the ones to position themselves in the next 12 months. not only were they workshops where we talked about excess to capitals, we brought inexperienced bankers that did 101 assessment and evaluations of these companies to develop a capital plan for them in order to participation going forward. this is exciting stuff for us because we've been doing this 15 years and one of the challenges that we've had is being able to identify, put

together a program to be able to address access to capital. nor cal has a contract with the state of california where they can guarantee 80 percent of the loan to help local contractors to participate on the project. this is pioneering stuff. you can get the job but if you don't have capital you are setting yourself up for failure. we do not want to see that happen. this is our mantra and our goal is to build capacity for the future. 15-20-year project, let's grow these businesses, not only technologically or financially, but give them a real upper hand on participating and growing the business. finally, our workshops were spanned throughout the year. we tailor it on the needs. there are some companies that are autoca