>> you need to do public comment -- >> i didn't do public comment. my apologies. it's been five hours almost. we'll open up to public comment. anybody wish to comment on item number 5, please step forward? and anybody else who is not up first, please line up against the far wall. everyone has two minutes. thanks for being here. [inaudible]. >> stay there, stay there. good afternoon, my name is sandra sears and i'm here to represent [speaker not understood]. we are fully supportive of this measure and we'd like it to move forward. we actually operate [speaker not understood]. we have a family run business and we've been operating over 30 years and every day we have customers come in and inquire about coit tower and are interested in doing museum

tour. we think it would be fantastic to know we could send our customers there. they would be part of a museum like experience. with a substantial program, they will be educated by knowledgeable information, accurate information about the art historical gem in the coit tower. we can do this process all along and we support it and hope it moves forward. thank you so much. >> thank you. next speaker, please. good afternoon, my name is davey crockett. i'm a san francisco realtor and i've known terry brim for about 15 year. i've had the opportunity to experience his high-level hospitality at both the anchor and ken wood inn. and i can only say what he sets his mind to, he he does a very high quality job in term of visitor experience.

and i'm all for it. so, thank you very much. good afternoon, i'm ann [speaker not understood], long-time resident of telegraph hill and involved in working at coit tower various times over the year including trying to improve the concessions for the last 5 to 10 years and i'm really delighted that the department has been able to put this forward and [speaker not understood] and delighted that terry grim is the person who is going to be responsible for it because i think he is the kind of person who can make this happen well. as you know, coit tower is not only a monument, but it's also a park. and, so, those of us who are in the neighborhood use that park regularly and we rely upon the management of that building to work with the pork as well as. that makes a big difference to the neighbors as well as the

visitors and the city. i urge you to move along this long thought concession agreement and hope it will come to fruition soon. >> ms. hall stead, one question. actually, mihal stead, could i ask you if [speaker not understood] has been part of the discussions ~? because i know it's right down the hill and i know that the families and the teachers that are there, are they a part of the pioneer park? >> i think i'm going to let julie christian son answer that. she's going to follow me. i have not been talking to the [speaker not understood]. i can't answer that question adequately. thank you. love the school. >> i would say i think it would be good for the new vendor to build good neighbor policies to reach out to not only the neighbors, but also the many families. we did the pioneer park renovation in 2001 and worked with the school on a number of

parts of that project. but i don't know what's happening right now. thank you. >> thank you. next speaker, please. do you want me to answer that question before the clock starts? garfield familieses tend to be more focused on the play grounds down the hill than they are the tower. the tower tend to get used more by seniors and single adults than by family because of the terrain. there have been improvements in the park, but their focus has been on joe di maggio playground and north beach library. my name is julie christian here. i'm here to ask your support for the lease [speaker not understood]. i'm one of the founding members of the park project. we were founded 19 years ago this month. we are pro bono engineerses and volunteers, figured out how to make the tower ada accessible and ada compliant without making changes to the structure. it is now one of the prettiest

places at the tower, erosion control, pedestrian safety. we continue to work with the department. at the time of the 2001 project we helped raise over 2-1/2 million dollars towards that renovation. in the last three years we continued to supply as much as $3 million [speaker not understood]. the one thing that has eluded us is an adequate concessioner, someone up to the task and equal to the importance and demands of the building. we believe mr. grim is that person. we are lucky to have him and we thank the department particularly cassandra costello for pushing this rock over the hill. and to ann hall stead's point, a reminder that this tower is surrounded by a park that's actually 60 years older than the tower. and by the laws of physics it needs the same kind of

attention that the tower does to be adequately maintained. thank you. my amazement at your stamina today. >> thank you very much. next speaker, please. my name is ken may lee and i'm here to express my surprise that it's not taken as long as i thought it would to get to this point. i'm sure you all are very familiar with how long it takes between community concern and city departments, but we are at a crucial point and i'm very happy to see this lease come before the committee and i'm hopeful it will go before the board with your recommendation. >> thank you very much. next speaker, please. hi, my name is umberto [speaker not understood]. i have been a tourist at the coit tower and i have taken a bunch of friends to visit the coit tower so i am familiar with the beauty and intoerctiontionv of the tower

and also i'm familiar with the services the tower used to offer. and i have known terry grim for about 20 years. i've seen him do a lot of things during this time from restoring beautiful cars to restoring old houses to improving hotels and [speaker not understood], and i'm sure they will do the same great job with the coit tower. thank you. >> thank you very much. next speaker, please. thank you very much, mr. president. and honorable members of the board of supervisors. my name is ben, and i'm a staff person at japanese tea garden in golden gate park. [speaker not understood] was unable to a tedv today and she asked me and requested me to make this statement. we the japanese tea garden are a proud partner of the city and operation and management of the

japanese tea garden's tea house and gift shop in september of 2009. we have seen how investments in the property have greatly enhanced your overall ontoerctiontionv to this cultural site in the city of san francisco. carol and the team have invested over $450,000 in upgrade to the tea house and to the gift shop. in partnering with the recreation park department, [speaker not understood] to make the tea garden fully enjoyable to all visitors. since taking over management of the concession, and the japanese tea garden, figures show that the revenues increased almost 40%. we provide a welcome tea house experience serving a variety of japanese teas and japanese confessions, high quality, and

unique japanese type gift item at the gift short, and a highly professional run operation ~. we frequently have guests to local residents who express positiveness and their repeat visits to the japanese tea garden. we are confident that the coit tower llc will present a similar positive experience to coit tower. with the proposal, improvements for the concession, educational meal tours, high quality book shop, and a professionally run operation. thank you very much for allowing this time. >> thank you very much. are there any other members of the public who wish to comment on this item? okay, seeing none, public comment is closed. [gavel] >> colleague, first before any comments, could i have a motion to rescind the prior vote on those amendmentses? motion by supervisor mar. we can that without objection now. [gavel] >> president chiu? >> just one final comment. again, i want to thank all the members of my district and the community that worked on this.

like many things in san francisco, particularly in the northeast neighborhoods, this has not been without controversy, but i'm very happy that we are where we are today and i appreciate everyone's patience both today and recent years. with that as i mentioned colleague, i'd like to ask the members of the committee to address mr. rose's point then move this forward with full recommendation. >> thank you, president chiu. supervisor avalos. >> yes, i can make that motion to make the amendment. first i want to say when it comes to buying my california t-shirts and my license plate cover, i'll go to fisherman's wharf and not coit tower. i make the motion to accept the 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