budget analyst recommendations and forward the underlying -- >> to be clear, president chiu's recommend,s? >> yes, to make the amendments that i have circulated. >> correct, okay, supervisor mar. >> so, those amendments have been seconded already? >> yes, i'm supportive. since the public comment brought it up, i wanted to thank the lowe family for over 20 years of running the concession stand at the site and i totally agree with mr. mccatch im about that size. my hope is the new vendors are sensitive not only to garfield school, but the historic significance of the site. i've always had a good experience there, but i see this will make the site so much better as well. i just wanted to make those comments. >> okay, supervisor mar. so, we have a motion on the floor that's been seconded to accept president chiu's amendments. we can take that without objection.

[gavel] >> the other underlying amendment, we can take that as amended? we can take it without objection. gov >> madam clerk, please call item number 6. >> item number 6 is hearing on the city's implementation of administrative code, chapter 14b, the local business enterprise and non-discrimination in contracting ordinance. ~ >> okay, thank you. this is a hearing called by president chiu and also co-sponsored by supervisor cohen. so, i'll turn it over to president chiu. >> thank you, mr. chair, colleague, thank you for your patience as well as the patience of the members of the public that have been waiting for this item. colleagues, i have asked for this hearing on the implementation of chapter 14b of administrative code otherwise known as local business enterprise and nondiscrimination and contracting ordinance. as some of you may know, three decades ago, this board of supervisors passed chapter 14b after acknowledging the history of passive and sometimes active discrimination in our city's contracting policies. in order to fulfill san

francisco's commitment to economic development for all of our diverse communities, this is a law that over the years has had to foster a vibrant network of small and micro diverse businesses throughout san francisco. now, there are three reasons why i called for this hearing. first and foremost we wanted to get a status update on chapter 14b. in 2012 mayor lee by executive order moved our city's contracting compliance staff from the human rights staff to an office under the city administrator. few months ago the contract monitoring division run by core dovish you'd a report on local enterprise participation the past fiscal year. some of you may remember i used to call regular hearings under progress under 14 b. i haven't done so. this is the first report i've used in recent years i think one of the reasons why you want to read today is to get a

picture of data so we can figure out where we need to go. second reason i wanted to call this hearing is our contracting really represents a wonderful opportunity for real economic development. we contract hundreds of millions of dollars on goods and services in city government which is our local version of economic stimulus and our country can process a powerful tool to help disadvantaged, low-income, minority owned and women business enter the economic mainstream. the question we need to ask ourselves is are we doing all we can. i have certainly gotten community feedback there is more we can do and that is what i hope to hear during this hearing. last thing i want to mention is there have been ongoing discussions about whether there are changes to chapter 14b that would be helpful. we know that when our contracting process works, this is a law that ought to level the playing field between our local, small, and diverse business he he and larger businesses that are located

outside of san francisco. since prop 20, we need to ask are there better ways for our city to award and administer contracts? can we be more fair, more effective and more efficient in providing equal opportunity to all local businesses? so, with that, i want to first acknowledge, i know we have many leaders here representing the diversity of our local contracting community, but i would like to ask the head of our contract monitoring division who has been working on this recently to give a report on where we stand and give us a sense of where things are at this point. so, at this point i'd turn it over to the contract and monitoring division. >> thank you, president chiu. thank you, board of supervisors, members of the committee. my name is nadia cordero and i am the director of the contract monitoring division, i've been on this job about a year now. and i appreciate that [speaker

not understood] so, i'm going to go a little faster than most. that is our agenda and we're going to try to give you the mission and history of the contract monitoring division, a 14b overview, certification data, award data of last year's contract, a waiver report and legislative review on how we're going to proceed, hopefully with the help of the supervisors. our mission is the contract monitoring division implements and enforces three ordinances to protect the public interest in equality throughout the sit city of san francisco benefits program. [speaker not understood], chapter 14b local business enterprise, and 14 c [speaker not understood] under the 14 b ordinance.

historical overview, we used to be in the san francisco -- under san francisco human rights commission. and in 1994, san francisco enacted a law to combat discrimination in contracting by increasing opportunities for minorities and women owned firms to secure city contracts. in 2006 because of proposition 209, 14 b was passed to make the law raise and [speaker not understood]. in 2010 the lbe was added to the ordinance. in 2012 the ordinance of 14b was transferred to the city administrator's office. in 2013 the contract monitoring division launched a new contract tracking system to track the payments on contracts and a new online certification program. and recently, about a month ago, the mayor appointed a new lbe advisor.

[speaker not understood] from 2003 to the present time. the present cnd budget is about $4.6 million, and we are entirely work order funded. so, 16 departments funding this are cmd. approximately 45% of the dollars come from general fund department, and 55% comes from enterprise department. and this is just a historical information presentation. the 14b overview, the purpose for the 14b ordinance is to maximize local, as president chiu mentioned, local small business's participation in the city's contracting process. [speaker not understood] contracting opportunities by giving construction prime a 10%

discount and a professional services bidders with a write-in bonus. we also provide subcontracting opportunities and good faith requirements. we have a financial assistance -- funded financial assistance program under the program. we do many, many of our outreach meetings with city departments, with different organizations. and our contract compliance monitors monitor the day to day and the utilization of contracts. we also certify all the firms which i'm going to have a slide on and [speaker not understood]. the contract [speaker not understood] under the type b program, we have 13 b micro

certified, formal certified. the contracts over and under $10 million are treated differently depending on what they are. under each contract there are specific economic pressures that trigger different actions, for example. we have under the informal process, we set every goal at 50,000 and more. we give a 10% bonus discount rating. and the bonus is applied and there's no retirement and then goes on according to the contracts we don't [inaudible]. the compliance officers duties go from monitoring the solicitation process, to setting up the e-gold, providing training to eligible firms that fit this kind of bonus rating to [speaker not understood] pre-and post ward compliance.

we mediate complaints and disputinctiontionv of ~ disputes with anyone in the contract. [speaker not understood], lb participation, and we work with the controller's office to conduct audits yearly, yearly random audits. a little bit of history. in november 2012 the offices moved to 30 van ness to 2030 van ness. in july 13, we launched the [speaker not understood], hopefully we'll be able to streamline the contract monitoring process. and we reduced paperwork and eliminated the need for [speaker not understood] for the contractors which are the 2a, the 7 and the 9 payment form.

in september of 2013 we launched the certification online system which streamlined the certification process, reduce paperwork. we started this in september as i mentioned and the vendor submit applications and they up load the required documentation online which now is the time frame of [speaker not understood] certification application. and last month the [speaker not understood] from the advisory committee and the advisory committee is composed by total of 15 members. there are nine members from the lbe community and five members representing the city agencies. they will be making recommendations in the development, the implementation and monitoring of the policies and practices of the ordinance which you would approve. in october and november, february, and march the

contract monitoring division [speaker not understood], we held in conjunction with the department of public works a micro lbe town hall meeting. we had an open house which was very well attended [speaker not understood] and we also launch a one year business development program. the business development program that we launched about a year ago was designed to provide certified local business he with technical assistance and compete for city contracts. most of the departments have assisted us with this and [speaker not understood] and the process [inaudible]. in contract tracking, the lbts, [speaker not understood], we are going to be -- the wbts was

launched in july 1st and it will be reporting a quarterly report hopefully soon. we will be presenting this to the new lbe to the committee in the near future. on the certification slide i'm going to go a little faster. the certification slide standard is based on the ordinance. it's based on general construction of contractors licensed professional services, architects and engineers. we have three types of certification. the local business and [speaker not understood] certification, puc regional and nonprofit certification. and also we have the sbo [speaker not understood]. certification slide continues. the numbers of certified fund we have right now is 1412. we have both micro lbe certified half the size of the normal threshold. more lbes which is 11% and sba

which is 41 -- i'm sorry, 3% of certified [speaker not understood]. and this is a breakdown on the next chart is the mbes by [speaker not understood]. breakdown. right now we move forward on the wbe because wbes [speaker not understood] they would have to choose whether they want to be listed as minority and women owned. as of today we have 2 96 total firms that are wbe certified. and the next slide is the categories that the certified [speaker not understood] are falling under. our lbes are certified and over 270 different certification categories which are attached to the [speaker not understood] systems, rca system. yet as you can see on the slide, the majority of firms represent the construction industry.

the outreach to under represented industries, [speaker not understood] yellow pages, internet, any kind of tool that is available to us to do the outreach. in addition, we came up with an organization such as minority business women owned agencies, [speaker not understood] program to hold outreach events and targeted industries we need, the city actually need, the department. the next slide is the contracts. this is the data that we issue [speaker not understood] the annual report that we let out for this year. and this is the contract from july 1, 2012 to june 30th, 2013, and the report shows contracts below $20 million. and as you can see, the lbes are somewhat successful in prime contracts at this level.

>> just a question. there is a range here, 65% on the high end it's 100% for the port. this is just for new contracts, 12-13, is that correct? >> yes. >> what would you say would be the cause for the range? you know, it's 35% all together. is there a rule of thumb that you might be able to ascribe for why there is a difference in those figures? they're all generally fairly -- 60%, but -- >> supervisor avalos, are you referring to the port's contracts? >> no, just the difference between the port and, say, the airport and all the other departments. >> it's the amount of contracts that they had. it's significantly less.

the airport is [speaker not understood] a building t-1, that's going to open up a lot of opportunities. the port has very small contracts. there were also very -- they were very busy with america's cup last year. a lot of renovations they may be doing next year, they didn't do last year. that may be an issue. >> got it. yeah, i see the number now, it's a huge range. thank you. >> thank you. >> if i could draw a little on these numbers, this is the one side of the presentation that i think a lot of folks have really come here interested in. let me just first ask, your department has mostly put out quarter numbers. there is a new tracking system as of the middle of last year. when do you expect to put out quarterly numbers, ongoing data that we can review on the website and for the public to be able to analyze? >> we are working as of right now, we're working to develop

the first quarterly based on the, lbts. then we'll be doing it regularly. >> so, you expect to have that information out ~ a few weeks after march 31st? is that the expectation of the public? >> yes, we expect to have it. >> that is good news. as you know, it's been many quarters since we've gotten data. so, i really appreciate that. the data that you've presented here is frankly in a pretty different form from what we used to get a few years ago from hrc. a couple questions. i know your report focuses on five [speaker not understood]. will you be able to provide the city [speaker not understood]? >> right now we're focusing on the major 5. the database, i'm putting a lot of -- i believe that, yes, we will, supervisor chiu. eventually we'll be able to have everybody on the lbts. >> what do you think is the

time frame for getting all the departments, at least top 20? , it takes a lot of training. i would say -- i'm not sure. maybe within the next 5 to 10 years. >> i'm sorry, in the next 5 to 10 years is when we'll get that on all departments? >> every single department, we have 52 departments right now. but [speaker not understood] department and public works department that we report, we have [speaker not understood] personnel in the department. >> if i can suggest, i think you probably appreciate that 5 to 10 years to get data, about [speaker not understood] seems like a long time. >> i appreciate that. we have been tracking manually. we do have manual tracking for the small departments such as the sheriff's department, the public defenders office and the library. we do have data, manual data,

but we will have -- that's one of our goals. >> okay. and by the way i just want to say to the public i know we have in front of us a very hard working public servant and she is very short staffed within her department. so, i do under the concern. this is an area many people want to get transparency in this area. i'm happy to work with you to hopefully work with mayor lee to get more transparency in this area because a lot of people want to know, again, how we spend our money, how the contract decisions are made. let me make a couple other observations about this chart. it does look as supervisor avalos suggested, the ratios awarded to lbes seems high. when i read the report, this is looking at the ratio of contracts that are awarded, but not at the contract dollar awards. for example, for the airport, while it says that 65% of the contracts are awarded to lbes, if i'm reading correctly, the

actual contract dollars is -- in my mind, it is the dollars out to the community that is more important than the actual contracts. could you tell us why you didn't display percentage dollar amounts as opposed to just contract numbers? it seems to me that there are probably a lot of smaller contracts that go to our local businesses, but the larger contracts that involve lots of dollars seem to not be going to our local either primes or subs. >> president chiu, i'm not sure how to answer that question that you posed, but we report it on our data because it was available to us. >> okay. so, i guess the point that i would make is i think it would be helpful to have numbers that let us know the dollars that are going out to our local

communities as opposed to the number of contracts. and in particular, you also talk about the contracts that are awarded as opposed to what actually is getting paid to our contractors. and i think having that information would be helpful as well, i guess my broughter point, this could be helpful to all of us a we analyze how 14b works. i'm happy to work with your office and other stakeholders to figure out the best way to prioritize what we need and in a way that shows us [speaker not understood]. it's difficult from the numbers you have we're making good progores. these numbers from my recollection a few years ago are different from what [speaker not understood] now. again, it's a murky picture. >> i agree. thank you, president chiu. >> yeah, i'm sorry you're at the very end of our long meeting, but i did want to say

that looking at the lbe contracts over time would help me understand if we're making progress or not. and once you get more departments other than the five or so that are on here, i'd be interested. i had a broader, perhaps more political question. i know the human rights commission was formed out of the civil rights movement and the asian american movement and it always had the commission that was overseeing kind of how we were ensuring equality, whether its was through affirmative action or other types of programs like those we developed after prop 209's passage. and i'm just hoping that since we switch over to the city administrator, is there still this kind of oversight? i would hope that the human rights commission or other bodies still have oversight, or is it through that new advisory committee that was just appointed by the mayor? and knowing more information about who is on that committee would help me understand if there's community oversight so

that we ensure that there's equal opportunity and that we're not sliding back and that we're making progress for the micro enterprises to all the different new levels that we've had over the past few years. but that's just my 2 cents on that. >> thank you. , supervisor mar. >> so, president chiu, were there any other presenters? >> i'm not sure if -- did you finish your presentation? >> i have another chart very quickly if you allow me, that would be okay. the data by contracts, that was what was reported on the annual contract -- in the annual report. and this is the [speaker not understood] which is something that the community is very much interested in. i wanted to just present that slide. there are three different types of 14 waivers and there are sole source [speaker not understood] contracting goal waiving.

the idea of the waivers are sole source waivers and the pie chart on the left shows a breakdown of sole source waivers by type and the detail of this information is posted on our website so it's specifically for that reason. going forward, we have -- we are going to -- four contract compliance officer vacancies by the fiscal year. the cmd has set up a process to guide our stakeholder input from 5 subcontractors to the agency staff and elected officials, and we have a community outreach rfp right now posted on our web and on the lca's website that we hope that this process that we will be holding several community

outreach meetings and different communities in san francisco. these meetings will be chaired by the new lbe advisory committee and a report will come out of the process presented to the advisory committee and we hope to have a legislated up to the board of supervisors by may. and that's about it. >> i had a couple of follow-up questions. one, just a comment after what supervisor mar had mentioned, which is part of the reason why i had called this hearing in december was a sense that there was just less accountability around our contracting process without the fact that there is a commission oversight structure over this. i called for this hearing in mid december, and i very much appreciate the fact that mayor lee in january had appointed i would be on the advisory committee. one thing i would say to the community that is here, i think we're all looking forward to seeing if that is a structure that is going to really ensure a connection and an

accountability to the community. on a slightly different point, i know a lot of departments have often asked for more flexibility in meeting the rbe program. i think we under different department work differently, but we also want to make sure departments are held accountable. could you, given that you suggested it's going to take awhile to get data from departments, are there any mechanisms to hold departments accountable for making progress in this area? what can we do to make sure the department heads or the management teams of different departments are helping us meet the goals of chapter 14b? >> president chiu, i think i misspoke. it's not that they're not participating in the program. they are. and they are tracking -- we are both -- the department and the cmd staff are tracking. what i meant to say is that to have them all on board in the lbeuts is going to take us that long to get -- i'm not sure how

long it's going to take. i think it's once the pilot project, once we have about a year's worth of data, we're going to see how much turning it takes for the department to come on board. it may take less than five years, it may take less than five years to get them all on board and tracking. the departments, they are very supportive. starting with seas, there is a mechanism that if somebody is going to publish an rfp and they have not come to cmd to look for lbe goals, there is a mandate that says if you have not contacted cmd, contact them now for a waiver or for [speaker not understood]. so, there is a mechanism there to catch any contracts or any departments that are not aware of the 14b ordinance. >> let me suggest i think five years is just not an acceptable time frame for us to be thinking about this. maybe five months would be more

reasonable. and, again, i'm happy to discuss this with you afterwards. but one of the things i would like to suggest is we probably need to have another check in than a few months on these topics. and the questions that arise from the committee and the public we can have a chance to check in. the fact of the matter is we've invested in this tracking system and we better put it to use to be able to figure out where we're going. let me ask a different question, which is i often am alerted by small local businesses that let me know about allegations of violations in our local business enterprise law. one of the issues that continue to arise is a lot of these small businesses really are concerned about retaliation when they bring up issues with the contract ining process. ~ contracting process. they're worried if they bring this up to the department they'll get blacklisted and not receive a contract or future

contract. what is your perspective on whether we need to build in more protections for so-called whistle blowers that raise these issues? and by the way, i'm raising this because i don't know if contractors here would feel comfortable raising this so it's important for me to ask the question. >> president chiu, we have met with the community-based organizations and they have brought up that issue and we are aware of instances. going forward, we will address that, hopefully with your leadership. >> potentially with legislation or some policy changes? >> it may -- i'm not sure how the city attorney will rule or how we will work towards something that could work for everyone involved. >> okay. one last set of questions and then i do want to move to public comment because we do have a lot of folks here today. there has been a