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 impr commucation, 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 automatically participating on the project and some need how to do a change order and rfi and what are the processes for that as far as accounting and bookkeeping. so our goal with the cap office is to develop capacity through education and providing whatever resources and assistance that we can. again, we are excited about this. we've done a lot of programs. we have not had the

kind of resources allocated to be able to do a real solid complete job. we do here and we can only be excited to come to you guys in the future and say look what we have accomplished collectively because this is something that requires the entire team. not just a general contractor, not just a developer but there is contractors from the community. they have to be honest and look hard in the mirror and understand there are challenges within their company and they have to grow their business to participate. this is not a handout, but a hand up to participate -- on this project. i'm available for questions. >> thank you. commissioners. >> thank you mr. butler and mr. cook, that concludes the presentation. we are available for any questions you might have. >> thank you very much. i would like to take public comment on this item? questions? >> the first sticker is al

norman. >> thank you. >> madam chair, madam director, commissioners, al norms. president of mechanical inc.. i appreciate you an allowing me to speak here and explain how we feel about lan ar and roberts now. we know that 50 and 51 on this block deal was already on the process before you got this position in now. it was already in the process. the thing we didn't like about 50 and 51 is you had no process the place for a level playing field. it was just business as usual and the same good old

boys you use everywhere else is coming to do this project for me. now we have danny cook an butler enterprise and a lot of other things, we know that we have a fair shake at level playing field. we are not asking anybody to give us a dog gone thing. we went here, we put in the position he did. we expect him to deliver on what they said they were going to deliver. all those meetings and city hall and everywhere else that a lot of you attended. that's all we are asking, a level playing field in our backyard. we don't get a chance in anybody else's backyard. this is our backyard. we just want a level playing field. we don't want to you give us something because we live here or we are a certain color. just provide us with a level playing field. i think we got that with danny cook and butler

enterprise and what they brought to the table for this process. we have you. myself as a contractor and my other fellow contractors. all we want is a level playing field. you can come out and see us and tell us about the adjustments we need to make in our business to be a success and all the other things. i have been in this business for 27 years. the contracting questions, i have done the units for houses or 3rd street but i don't get the same consideration now that i got then. i guess it's a difference dealing with the daddy and then dealing with the son. but with a we see in place now with lan ar we think we got a good shot at a level playing field. i thank you so much for this opportunity. >> james mabme?

>> good afternoon madam chair and the rest of the commissioners. my name is james may bree. i'm with janitorial services. i'm with bayview renaissance and member of the bayview association. i did bid on it and i didn't get awarded the contract because my bid was too high. i make-up 1 percent. i do final phase cleaning. i try to keep my core crew working which is out of the bay point and i'm looking for more opportunities to hiring more young men and women and get them active as employees. the

butler enterprise what they are providing to us as small businesses is real significant because we don't have that level playing field as far as having more opportunities at jobs. this opportunity is being provided right in our own neighborhood. as a small business who has all it's i's dotted and t's crossed. i'm asking you see to it and not just myself and all that have their i's dotted and t's cross at bidding at a competitive process. not where you are making one mistake and you lose. but bid where we can make money to be stable to be able to sustain when these companies leave. we want to be able to stay in business and keep our

core employees moving. that's all we are asking for. butler enterprise entity has invited us out to access the money program and blue read. that is significant because as a small business we don't have access to money. for them to put on, for them to bring in people for us to actually contact and be able to acquire access to money when having a larger contracts because, for me, a small business, i don't have money to float these contracts. so access to the money is very significant and what the butler enterprise is doing in the bayview point and larn ar is awe son. i ask you to see that they do the right thing. thank you.

>> washington? >> good afternoon. i'm here very much supporting butler enterprises in particular because i know the young brother for many years from the fillmore genuine above the board and i think he's very, i think he's a bright person and what the city needs. he's working in the western addition. i'm also here supporting the project in total itself because it must move on. something that's been going in the process of planning for many years way before most of you were involved with the cac. i'm in the process now of trying to and getting ready to submit proposals to document what's going on for the