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] good morning, today

tuesday, february 4th, 2014, this is the special meeting of the building inspection commission. i would like to remind everyone to please turn off all electronic devices. the first item on the agenda is roll call. >> president mccarthy? >> here. >> mar. >> here. >> clinch? >> here. >> lee. >> here. >> mccray. >> present. >> melgar. >> here. >> commissioner walker? >> here. >> we have a quorum and the next item is item two, discussion and possible action on the proposed budget of the department of building inspection for fiscal years 14, 15, and 15, 16. in order to pass, it will have to have a vote of five out of the seven. >> good morning, my name is gale and i am the acting chief

financial officer for dbi and i made the presentation of the budget at the last meeting. i am happy to say that i have not made any changes to. and the only question that i have received between the two meetings was whether or not we had any funds available for promotional activities related to the 25th anniversary of the earthquake, we don't have anything specifically for that event but we do have funds for promotional activities in the department as a whole. and we can definitely do something with the existing funds that are in the budget. but that is the only request that i have received in the last 2 weeks. i do except some minor changes to work orders and i thaneds one of the work orderses is going to go up a little bit and the hsa worker is going to be down and they all come out in the wash and minor charges over all and i have nothing else to present at this time.

>> i think that this might be the quickest meeting, and i just wanted to obviously take you again and the one thing that and we did talk about this last week and more and more the expansion plans and the office, and i know that it is director has talked about a numerous occasions the key for me and you have, and i forgot the dollar amount but i think that it is over a million dollars that you for to do the investigation and how to expand the space and all of that? >> and so in this current fiscal year we have $400,000 to do a facility master plan and so we have partnered with the department of public works and they have hired a consultant and they have looked at our existing staff and space and come back with a recommendation that we need more space and the question now is there is fine tuning that is going to happen

with how many people do you think that bewill grow to the near term and how many conference rooms do we need and we are going to expand that analysis a little bit into, once we determine exactly how much space we need and what spaces or what are our options and that is going to happen this year with the money that is already budgeted. so if we decide that we need the current building is 66,000 square feet, if we decide that we need roughly 95,000 square feet, these are very ballpark numbers, then they will say okay, if you need 95,000 square feet you can add on to your building at this cost, you could move into a building in the civic center plaza which would be about this cost or we can build a new building and it would be about this cost so next year i suspect that they will finish all of that type of analysis and we will be moving forward with whatever option and the consultation with us and the mayor's office and there are a lot of people that

will be involved so we will take the next step next year and starting over towards whatever resolution seems best, so all parties involved. so what we did since we don't really have an idea of what that resolution is going to be, at this time, we put a half a million in next year's budget for general planning for whatever it is that we decide that we want to do and then we know whatever that is going to cost money. and so we put in another million in the following year, a million and a half between the two years. as you guys know, that we have to and you have to approve the budget today, hopefully and, then it goes to the mayor's office at the end of february and the mayor does not actually present the budget to the board until june first and some time between now and june first if they have a better idea they may change those numbers and may say we have this perfect building at the corner of market and van ness and give the exact amount of space for x, money and then we might change what is in the proposal that the mayor will put forward to the board, but we don't really know, so the money in the budget is a place holder.

>> commissioner walker, so they will do that without us approving it or having any say about it? >> i will expect to come back to you guys to have a say. >> that would be good. >> yes. and my understanding is that you guys need to have a say, the mayor's office, well obviously will have a say and so will the capitol planning committee and we have been clear that all players need to have a say before we spend what is likely to be a significant amount of money. >> great. >> is there a time line when the mayor has to get back to us about any changes, for example, if they get the budget in february, do they have to come back to us before by april or march. >> they don't have to come back to this body at all and so they can make changes all the way up to the week before they present the budget in june. and they generally do that in consultation with me and the director. but, it does not necessarily come back to this body. and any large changes we will communicate back to the body

but we may not know when they are and may happen at the last minute. >> but we do as a commission have an opportunity to go to the budget hearings and voice our concerns. >> you always have that opportunity. >> i guess that the big thing and what i am hearing is, even if we were to hire more people, now, which we look like we are going to be constantly building here, we don't have anywhere to put these people, it is not a hiring problem that we have right now, the bigger problem is a space problem. >> that is true. we could add a few more people into the existing space, but we could not add a significant number of people to the existing space. the other part of the discussion that we have been having recently with the department of real estate and the mayor's office is could we do a satellite office? is there another office in the close vicinity to dbi that we could rent for more space? and that is still in discussion and one option that was given to us was too far away and so they are looking for an option that is a little closer as a

possibility for hiring more staff. >> all right. okay. i think that will be our big challenge, when we first, twoiers ago we were trying to get on it three years ago trying to get back on a mode of hiring people now we are catching up now and the next problem is to keep that flow of nutrition, and of good people coming aboard over the years, where are we going to put them. i think that this should be a big focus on that. so, but otherwise, congratulations, well done. >> thank you. >> and hopefully they will not give you too hard of a time at the supervisors, and the budget committee may i say. >> is there any more questions? i see none, and it looks like we can call the motion. >> okay. >> is there public comment on this item? >> seeing none, is there a motion? >> i move to approve the budget. >> i second. >> a motion, and a second. so the roll call vote. president mccarthy? >> yes.

>> vice president mar? >> yes. >> commissioner clinch? >> yes. >> commissioner lee. >> yes. >> commissioner mccray. >> yes. >> commissioner melgar. >> yes. >> commissioner walker? >> yes. >> the budget is approved and passes unanimously. >> and as a reminder, our next regular meeting is on february 19th. >> okay. >> and the next item is adjournment. is there a motion to adjourn? >> move to adjourn. >> second. >> thank you. >> all in favor? >> aye. >> aye. >> aye. >> aye. >> closed and adjourned. >> thank you commissioners for coming in.@@