also mentioned by ann cervantes, some agencies issue a pre-qualification of firms which are much more complicated, some are five years experience, some are 10 years experience. it can't be supported by local mbes. this allows the primes to import their own local subs instead of outside of san francisco and this money is not awarded to these local companies. thank you very much. >> thank you for the letter. next speaker, please. president chiu, supervisor avalos, first of all, thank you for the sticking with us after a long day. you're the only guy right there now, so we appreciate you hearing us out. my name is julianne summer. [speaker not understood]. i'm also president of the american asian contractors association. i'm part of the talks the various business organizations had about 14b and i just want

to reiterate a point that president chiu made earlier as well as a few other speakers. we know anecdotally there are many stories of lbes being put in awkward situations, possibly being, you know, not in favorable positions under larger gcs and anecdotally we know that there are many situations like that, but we couldn't get them here necessarily to speak or put their name to paper. so, you know, just as the previous speaker spoke about possible retaliation with a project that he's currently negotiating with, we need full protection. it is very important to all of us. as agencies are hope gli going to be held more accountable, hopefully as we begin to mold policy and further developed, they're going to be outliers and they may not want to follow

the rules and so these policy breaker need to be called out. please remember we do need the board protection moving forward. >> before the next speaker, i want to just take a moment and mention i just had a conversation with our deputy controller and given the challenges that we've had in tracking our data, tracking our numbers, i have asked her if the controller's office might be able to work with our contract monitoring division to help bolster some of the analytics and quantitative analyses we need. do you have a comment on that? >> yes, president chiu, supervisor avalos, monique zamuda from the controller's office. we would be happy to have an analyst work with the division to take a look at the data, the source data, the reporting and ensure that you have the kind of information that you are looking for without having to do calculations and so forth. and we can also validate the source data to be sure that it's reliable. >> i appreciate that. for folks who don't know our

controller's office, yes, you should be clapping. clam clap >> our controller is chief financial officer for the city and responsible for managing all of our city's finances and they have a reputation ~ within the city of having the top analyst on the information. i think it would be great if they could help our staff who i know are really just coming up to speed with the new systems we have. so, thank you for that. i know you need to go. i just wanted to say that while you were here. let me hear from the next speaker. let me call a number more names. lena [speaker not understood]. frank fong. nancy doningues. [speaker not understood]. jesus flores. andrew mellon. and those are the cards that i have. thank you. good afternoon, supervisor dado and supervisor avalos. thank you guys for staying and listening to us today. my name is rayana tong, kya, we

are a small architectural firm in san francisco and today i will be speaking about our personal experiences with the lbe ordinance, specifically about the puc headquarters building at 5 25 golden gate avenue. ~ around 2001 ken young & associates was invite today join the joint venture team to design the sfpuc headquarter building. you were included in the architectural team to the prime joint venture design team. after the project started kya was never asked to perform any services. kya, did, however, perform some nominal services for which we were paid about 6 or $7,000 under another subconsultant. and then the project was put on hold. around 2003, the project started up again and the joint

venture prime architectural firm called kya and told kya that we were no longer needed on the project, that kya already had enough work, and that kya should not be bitter about this decision. this decision was verbally reported to the puc director who informed kya that this was not a puc issue and that we should inform dpw instead. so, 2012 near completion of the project, hrc compliance officer called and asked whether payment to kya -- we were allocated $300,000. we informed the officer kya was asked not to participate. the compliance officer said the joint venture could be [speaker not understood]. the joint venture architect

called kya and [speaker not understood] declined serving on the project. we feel like we were treated unfairly. that's basically the point of the story and we hope this solution can be solved in the future. >> thank you. (applause) >> next speaker, please. good afternoon. i appreciate an opportunity to speak here. i have a written statement to read and i will submit it. my name is nina tan, a san francisco resident and [speaker not understood] of construction management, inc., a small asian woman owned construction company. i'm here to thank you in person for maintaining the lbe program for us, the local independent small business. about five years ago when the economy slow down, my office was [speaker not understood]. my company was able to [speaker

not understood] and remain in business. i am a minority san francisco business owner that lbe program to grow my business. we would like to see more program and more lbe participation requirements for the city county. i'm sure i speak for all my [speaker not understood] here tie to the [speaker not understood]. when the city decided to abandon the hrc and related [speaker not understood], i was quite worried that the city is going to abandon us. [speaker not understood]. however, i'm encouraged to see that program still alive and going to be a part of the city cultural policy. i would like the city to continue to maintain the lbe and i want the committee to

guide assistanced to the monitor deletion. we need the lbe program to help us. so, thank you very much. supervisors, frank fong. the small business sector has long been ignored in our city. this is especially true for small minority and women owned enterprises who historically face additional challenges. this is really a policy decision for the board of supervisors and to provide focus on the situation, i would like to share the case study we did recently for one of the larger departments in the city. and this department is probably one of the more supportive departments versus some of those who have not been very supportive historically. in fiscal year 2012-13, they spent on professional architectural engineer services approximately $76 million.

this correlated to approximately 500 million dollars in construction. on the prime level for design, 63.1% of the total amount of fees went to non-lbes. 0.75% of the prime fees went to lbes. on the subcontracting level, 17.9% of the total fee went to non-lbes and 16.8% went to lbes. our question to you is whether 17% local business participation is suitable and appropriate in our city. we ask that you rectify the situation in the upcoming legislative process amending the 13 b ordinance and to set the policy positions for the board of supervisors in enhancing local spending. thank you. >> mr. fong, can you share with us which department that is or is that information -- airport.

>> okay, airport. you point out the statistic we got suggests the 65% is something, but you're suggesting something very different. there may not be a conflict there because what they're doing is aggregating between design and construction dollars. there are more construction dollars being spent to lbes than there are professional services. >> thank you. good afternoon, my name is dana doningues. i'm a local business owner in the bayview district. i own a lumber company. i've been an lbe company about 12 years. i've been involved in the lbe advisory committee about 7. and i have benefited from the 14b in the past. i do work with public works, p.u.c., and i've done a lot of projects. what i'd like to see is more attention given to suppliers, more preference for suppliers. a lot of it has to do with

contractors, subcontractors, but suppliers aren't afforded -- if there is no wording in a lot of these bids for participation for suppliers. i'd like to address the lennar development over at hunters point. there should be a little bit better oversight over there in how local businesses are being used. we're in the bayview. we employ all of our employees live in the neighborhood, and we still struggle to even get any luck or any kind of work from that development. so, i would like to just say that i think suppliers should be -- it should be addressed. the suppliers should be given discounts or contractors should give discounts for using local suppliers because we do employ local people. that's all i want to say, thanks. >> thank you. next speaker, please.

good afternoon. gentlemen, you have done a great job of bringing out a very important item for community folks. let me first say that cmd actually is an improvement over whats was before. let me make that real perfectly clear. let me also say that cmd without the resources of compliance officers they will not be effective. let me also say that 14b should be used to enhance the community and in a lot of ways it's not. clearly we're looking at data where the percentages of not just contracts themselves, but the percentage of hours is a compromising issue. it's not just in one place,

it's in all places. i don't think the department here -- i'm not the usual guy to [speaker not understood] the departments. but i'm going to defend the departments in the city for once and say that we also have to maintain and hold our contractors to whatever agreement that they've agreed to. and you cannot do that without having the proper staffing to do it. and, so, i encourage, you know, all of what has been said, the help, supervisor chiu. i encourage you to step in here because i think they would love to have your help. and, my friend over here, you know, look, if you're going to have local hiring, don't stop with just that piece. finish it off with having the

system with 14b with a system that works. and i want to thank you all for your time and i want you to know i didn't leave all day. thank you. >> we're here. thank you. good afternoon, supervisors. my name is jacquelyn flynn. i'm the executive director of the a. philip randolph institute san francisco. first i would like to thank you, supervisor chiu and supervisor cohen for bringing this item to the city's attention. the city has invested in efforts to create access to small businesses. most importantly, access for minority owned businesses and women owned bynesses through the lbe program. allowing access to city contract for successful small businesses to build capacity and really thrive. over the last three years i've seen changes that came with the lbe program. i think that came with the contract monitoring division. and i myself have seen them

take individuals in and provide one on one services, so, i really applaud those efforts. they've also done a lot of outreach to engage small businesses in the programs. but the city can do more than just get lbes onto the lbe list. they should consider access to the actual contract. so, i think we sort of really actually touched on that with the data that came out. we really need to look at ensuring that these lbes, mbes, wbes receive contracts upon successful bids even in partnership with the large contractors and the monitoring needs to go beyond just the bid package, but the fund are expended, the subcontractors should actually receive it. i just ask you to consider working models. there is a great example called the contract assistance center created by the puc that is in the bayview.

they can -- they've been supporting local businesses in getting through the lbe criteria, but also accessing and unbundling the large and i would use [speaker not understood] to start, modification to be made, to broaden the areas that the lbe program covers. thank you. >> thank you very much. next speaker, please. my name is nancy croft and i'm going to comment, if i can, i'll just say one has to do with the statistics discussed earlier. and another is the silence -- for retaliation for disclosures that you need for handling the

subject matter accurately. on the disclosures, the statistics, there is a mention that if a person has a business as a minority woman relative to whether she's a woman or whether she's a minority, well, this is fussy and it's very uncomfortable to try to do things with it. [speaker not understood] the sequoia high school district in san mateo county by reporting an argument, the statistics of the composition of the counselors and the teachers in the district compared to i guess the population. i have categories. they might be white women, asian women, black women, bi-race, ethnic, colored group, whatever itses was.

not women versus men and then another one women are different colors or racial groups. it's much more intelligible when you get the combination. and retaliation is important and it's the lack of provision for remedy against retaliation shows in the situation in the homeless situation in san francisco. failure to give some remedy to people who are retal indicated by being denied housing because they report what goes on. it is preventing you from knowing how to handle ending homelessness. >> thank you very much. am i cross. next speaker, please.

~ miss cross thank you for this opportunity to speak before you today, supervisors. i'm going to speak to the small criteria for the lbe, specifically the public works and construction area. [speaker not understood] the annual gross receipt. my name is aaron [speaker not understood]. we've been a contractor in the city and county of san francisco since 184 when the original law was put in place. ~ 1984 the program has not expanded under inflationary pressures. i think the construction deals with a lot of regulatory costs that are controlled by the contractor and have a strong trim line above ip flation. it is not expanded, the economic real value has not increased and therefore is diminished.

the screen before us is a screen shot from the bureau of labor statistics showing that there has been over a 124% [speaker not understood] since 184, ~ 1984. if you take the cap since public works, it would be 36.3 million today [speaker not understood]. and i just wanted to show some major cost contributors to the area of public works construction. oil is a major cost contributor and has increased over 32 3% or more than 2.6 time inflation since 1984. concrete another major cost contributor has increased over 287%. and pcc pavement or concrete pavement has increased over 1.63 times inflation. i'm not asking for change, but i want the same program that was in original real terms, maybe some indexing, you know, or just this issue being addressed and i never heard it

addressed before so i want to bring it before you today. of the original 14 million if you take the average annual inflation, costs 565,000 per year. thank you. >> thank you very much. if you want to submit that powerpoint to us, that would be good to see. i'll leave it right here. >> great. next speaker, please. good afternoon. my name is andrew mellon. i'm with shaw pipeline, another lbe here in the city. following on from what aaron was saying there is 124% cpi increase, if you reduce that, a company doing 15 million per year, could be equivalent in size to a company in 1984 to a company doing 1.67 million. a company today could conceivably be above the small lbe initially would have qualified as a microbe.

[speaker not understood] open to reflect company sizes closer to their equivalence at the original start of the program. another factor that is pushing us closer to the cap without any growth in the company is the composition of public works jobs tending to change. whereas you used to have water, sewer, paving job which makes a lot more sense from a practical standpoint, but also means we may get a project worth 5 million, but we'd be subcontracting out 2 million of it. so, three of those contracts in the air would put us at 15 million or we'd only be doing 9 million of it ourselves. lbe programs assisted us, small [speaker not understood]. ideally we feel the companies in the program that are successful and want to expand

could do so and by the time they are going out of the program they have a sufficient size to compete with the larger companies and they benefit from economies of scale. this would also go towards president chiu's point of trying to get more dollars going to the lbes. a lot of the larger projects they are not large enough to be equipped to handle those. thank you for your team. >> thank you, next speaker, please. good afternoon, i am [speaker not understood] construction company. founded my company in 1995. since then [speaker not understood] for city and county of san francisco. for the last 10 years or so, i employed approximately 40 trades men full time, approximately half of whom reside in san francisco. mostly performing sewer and

water work in san francisco [speaker not understood], the actual work performed and number of employees required has not changed. we're not large company in any way. we work out of a store front in the excelsior district. with the help of lbe program, we have been able to keep our employees and working and tax paying part of the community. we believe that lbe communitiv and other [speaker not understood]. all i hope for that is annual receipts limit increase from the 14 mill established years ago, [speaker not understood]. i'm going to be able to keep my employees working and living in san francisco doing the work

that we are best. [speaker not understood]. so that our companies continue to work in san francisco. thank you for allowing me to speak. >> thank you very much. are there any other members of the public who would like to comment? anyone else like to comment? if you want to just line up over by the television by the window. thank you very much for giving me an opportunity to speak. my name is pete [speaker not understood] and i represent national association of minority contractors. president chiu referenced about data, getting access to data immediately. we do have a solution for you. that you can get the data immediately and it's used by the corporate america today, integrating a lot of their system. >> you'll probably have to take a contracting process to be able to use it. yes, i know that, and that's one of the reasons i

haven't approached the city. it's out there. the second reason i'm here i appreciate you looking into the 14b, i think it can be improved. helping local businesses, local businesses will hire more people, provide jobs in the community and i think, you know, if you can do more with the 14 b making clear that the local lbe companies that are in san francisco hire people to work that they get access to contracts and opportunities and that's what i'm here for. thank you. >> thank you very much. i don't believe there are any other speakers. and if there are no other speaker, we'll close public comment. [gavel] >> and give it to president chiu. >> just a final concluding comments. first of all, i appreciate everyone being involved and your patience and waiting for what has been a long day. i think the fact that we had so many members of the community that wanted to wait to speak to us about this is a rereflection

of the fact how important this topic is as i think one of the commenters said, this is not a sexy topic, but it is incredibly important for the future of our local and diverse communities that we get this right. we have a real opportunity every year with hundreds of millions of dollars to use that economic stimulus to good. but my concern is that we are wasting and squandering that opportunity and i do know that everyone in the room today wants to make sure that we do this better. i also want to say that i have a great deal of sympathy for the city staff who have been tackling a new system and i think are under staffed for the task that we need to have to get a handle of where our data is and how we analyze this in a way that gives us future steps forward. i want to thank the controller's office for their offer to work with our cmd office and really figure this out.

it's my hope that we are going to have a lot more information in the coming months, not just through the new system, but with the fact that we have a new lde advisory committee. i want to make sure in the next couple of months we're really focusing on this to figure out how we improve ourselves. what i'd like to do is continue this item to the call of the chair and likely come back in a few months for an update of of where we are, particularly after the next quarter's information ~ we'll have a better sense of how things are working. hopefully with the controllers hopefully be able to under the metrics and some sense of where we want the data to go. and begin to really gather all of the different ideas and how we amend 14b to really work for year 2014 because when this passed in 1984, we've learned a lot over the last 30 years, but there's a long way we need to go. with that, mr. chair, i appreciate your patience here and thank the members of the public and we are all going to

work together hopefully in the coming months to reform 14b, get us in a better footing and really use our city's purchasing power for our community. so, with that, if we could, i'd like to make a motion that we continue this to the call of the chair and we will go from there. >> okay, very good. i want to appreciate the presentation from staff, but more than anything, the people in the community who are here today. i would actually like to get some briefings from members of the community as well. i was working closely hearing from ann cervantes, but i know there are other folk part of the american asian contractors be good to hear from well. as well. perhaps we can have a meeting in my office to get more feedback from people as well ~ and i'll be working closely with president chiu changes that we can make to the 14b program as we make it easier, more accessible and coherent for folks to be able to

participate in and maximize participation in san francisco from our local contractors. okay. so, we'll take that motion to continue to the call of the chair without objection and i think that will end our committee meeting for today. [gavel] >> i want to thank our clerk, linda, for your work and we'll see you next week. [adjourned]