there are getting positions and construction is happening in san francisco. so, the i mpetus behind local hire is to make sure as we're building in san francisco and using our public dollars, we're making sure that the prosperity and the benefits that we create can really find their way to the neighborhood level, not so much as in a trickle, but in larger, a larger river of water that could actually come and support people. and we're looking at prosperity to the lives of everyday people. i've actually had the experience of working with youth programs over the years. one was the san francisco conservation core where i worked 20, 23 years ago and there are many people who came from ~ the excelsior, visitacion valley, i ngleside neighborhoods, bayview hunters point, potrero hill, who were looking for access into -- into building. didn't really feel that they

actually had the access they wanted. i think programs like first shoretion and the local hire ordinance are actually living up to that demand that is coming from our neighborhoods that we can actually create that greater access. ~ source i know that's been made through partnerships with our building trades and i want to thank the building trades for their work. for support at the local hire ordinance from the beginning and now it actually has become more open to it and now supporting it as we've seen the implementation happen three years later. so, i want to thank building trades partners for their participation and their patience and their flexibility in helping to make the local hire work happen in san francisco. today i have amendments to the local hire ordinance as well as, as well as an amendment to our first source hiring program that was established after welfare reform in 1996, i think

it was '98 we established the first source program. i'll start with the first source program. the first source program is actually going to enable us to get a really handle on what developers' plans are for local hiring and paying prevailing wage, [speaker not understood] for a project is starting, where construction begins. we're looking now for this ordinance to establish a relationship with the office of he can economic and workforce development and city build during the entitlement process, and actually that relationship and discussion about local hiring and prevailing wage will enable the city to assist developers in creating a workforce plan and a clear understanding of what we need to do to prepare people for work that will happen a couple years later. that, to me, will make the city much more efficient in doing its work around preparing the

workforce and enable many, many people from our neighborhoods to find access in the jobs on the private sector side through the first source program. so, the first source legislation i believe is going to be ready to go today and we can have a discussion whether to move it forward or not today. the second piece of legislation that i have is extending our local hire provisions that currently right now extend to construction for public dollars to private construction on public land. and i, in the last couple days i've been hearing from many, many city departments concerns about some of the consequences about this legislation. and they just now recently started to look at the legislation, how it's going to work. and they actually have asked for more time to consider some changes around the implementation. and given that the work that we

had done around the original local hire ordinance 3-1/2 years ago -- 3-1/2 years ago was done over the course of many, many months with a lot of relationship building with our city departments and our building trades, i think it makes sense that we continue that process to make sure that we have real clear dialogue to put together an ordinance that is going to be supportive from the get go. so, we'll be hearing public comment on both pieces of legislation. i have a minor amendment for the first source legislation that we have before us, but with the local hire and prevailing wage ordinance on construction projects on city-owned property, i'm going to continue for three weeks so we can get more information from our city departments and we can actually put together some amendments. some of the city departments have asked for three months' time, some have asked for 45

days' time. i think we already have this legislation on a 30-day rule, 30-day hold. i think we can actually accomplish a lot in three weeks and have it come back here then. so, at the end he of this hearing i'll be holding -- i'll be having a motion to continue for three weeks on item number 6. item number 5 i would like to make a minor amendment that my legislative aide will bring to me that we would like to move that forward here today. i also want to thank sheet metal workers for their work on the first source program. it's, you know, based on their participation and connection with our office we were able to put this legislation forward. and overall, the first source item number 5, the first source program is really enabled the city to anticipate what the needs may be on development and how we can prepare our workforce and have a good relationship with developers to make sure that they are aware of the rules around first source so that we can maximize the participation of people in

san francisco on projects covered with first source in the private sector. with that, i don't really have any other things to add to the, you know, legislation or to the discussion unless colleagues have questions about the legislation, how to move forward. we can go on directly to public comment. >> okay. if there are no questions at this time, why don't we take public comment right now. so, if there is anybody who wishes to comment on items 5 or 6. please step forward. good afternoon. my name is anthony urbina, i'm a representative for sheet metal workers [speaker not understood]. proposed changes to our local hire and first source agreements, 15 young men and

women stood with me who were hoping to change their lives by bettering themselves and entering into an apprenticeship program. we are in support of the changes of both the local hire and the first source ordinances. these changes would expand opportunities for those seeking a career pathway into the middle class. the changes proposed for the city's first source ordinance will give an even greater impact because for the first time it declares our city believes construction workers in the private sector deserve a family-supporting wage. it also calls upon developers to have apprentices from the state approved programs on their construction sites. i could tell you with certainty that there are active construction sites in our community being built by workers being paid next to nothing with no health care coverage and few, if any,

additional benefits. on these projects, hundreds of opportunities for our youth, veterans, and ex-offenders to be in a state-approved apprenticeship program are lost since they simply won't use apprentices on these projects. these improvements to the local hire and first source ordinances are not only good for construction workers, it's good for everyone in san francisco because it means tens of millions in wages currently leaving our community will be spent here, generating sales taxes to support the social programs important to us all. i believe a strong economy is dependent on having a healthy construction industry and we must take every he can economic advantage we can out of every construction dollar spent. thank you. >> thanks very much. anybody else in the public wish to comment? afternoon, supervisors. eddy young with bright line defense project. thank you, supervisor avalos, for introducing this

legislation today and the subsequent amendments. the importance of this proposal cannot be emphasized enough. local hire has seen three years of success now with the increase of over 75% in economic opportunities, job opportunities for our communities in san francisco, particularly low-income communities which have created a virtuous cycle of he can economic development throughout the city. and that three years of success would not have been possible without very thoughtful input and broad stakeholder input. and as you pointed out today, it has -- it seem to be appropriate to potentially take more time because that broad input has ensured that local hires had negative cost impact to the city or other departments in implementing opportunities for our residents. so, in that -- recognition of that input, 2 to 3 weeks seems appropriate to perhaps gather more thoughts and to make sure we can i am preempt the best version of local hire possible. thank you. >> thank you. next speaker, please.

~ implement good morning, my name is jacqueline [speaker not understood]. i'm the executive director of the a. philip brand [speaker not understood] institute in san francisco. and i do want to applaud the city's efforts to stimulate the economy while carefully ballet workforce initiative that creates vital opportunities for unemployed and under employed san francisco residents to be able to access work here in the city. and as the city continues to grow, careful and well [speaker not understood] plans are not only essential for the city's budget, but we're also -- in order to take strides for the overall goals for the city to address low-income families that struggle to live here and work, i encourage you as you take a further look at supportive data as well as vital information from our construction advisory committee, just to remember to

take care of our communities. and we're looking forward to hearing back in three weeks. thank you. >> thanks very much. next speaker, please. good afternoon, supervisors. manny flores he, recently retired from the carpenters union, local 22 ~. pleasure to be here. you know, these two ordinances here, they make a lot of sense, especially on the first horse. it holds these developers accountable. exactly what are they paying? what are their plans? what do they plan to do? you know, hold their feet to the fire. and i think it's, it's well written and explains it. second one, it's a no-brainer. you're expanding more work opportunities. supervisor avalos says, you know, on the local hire ordinance, how has it been working? it's been doing pretty good. so, here's an opportunity, you

know, to expand it more. more opportunity, that's what it's about. for our residents here in san francisco. now, obviously more study needs to be done exactly what the cost-effectiveness going to be. but this is going to help level the playing field for everybody. all the developers and say, hey, let's get with it, make the playing field for everybody -- level playing field w. that, i look forward to supporting both of them. thank you very much. >> thank you very much. next speaker, please. ~ with that good afternoon, supervisors. don marcos, director mission hiring hall. been doing the workforce program in the city for the last two decades. equal opportunity has been called many different things in this city, and it's good to know that somebody keeps the focus on equal opportunity for

san francisco residents, especially low-income residents. these two legislations is probably the best job development tool that we have. [speaker not understood] everybody that comes to do work in san francisco, there are people trying to stay in the city. and with the living wage jobs that construction offers, the entry and access that city build provides, it keeps the opportunity going and it keeps the city and its residents in the city. i want to thank supervisor avalos for championing this. it's a great legislation. thank you for your support. >> thank you very much. next speaker, please. hi, my name is army morgan and i'm speaking on behalf of the operating engineers local 3 [speaker not understood] international operating engineers. and we're excited about these two ordinances and we'd like

to, you know, give all our support towards it, with the local hire and prevailing wage. you know, we're definitely on board. me being from, you know, and my family being from the southeast part of the city and that community stands to benefit greatly, you know, by, you know, these middle class jobs that could be created through this legislation. and, you know, it will help, you know, create, you know, a lot of, you know, you know, better, you know, opportunities for the, you know, the community and all the city, you know, and all these communities in the city. and they have a better, you know, standard of living, [speaker not understood] health care and all around the board. so, i just want to get up here and say my little piece and thanks for listening to me. thank you. >> thanks very much. any other members of the public wish to comment on items 5 or 6? okay, seeing none, public comment is closed. [gavel] >> supervisor avalos?

>> thank you, chair farrell. so, colleagues, these two items, 6 we want to keep in committee, make a motion that we continue it to the call -- not to the call of the chair, to appear back in budget and finance on april 16th [speaker not understood]. continued three weeks. >> we have a motion to continue item number 6 to the budget meeting for april 16th. wednesday, april 16th. we can take that without objection. [gavel] >> great. and, so, item number 5, which is the first source hiring program, we want to strengthen our first source program around development projects, residential and commercial development projects. what it will do, require that developers at the time of [speaker not understood] when they come before planning to present plans or how they're going to pay prevailing wage and do their local hiring plans, presenting those to the office of he can economic workforce development city build so that we will have a

real handle on development and expect in terms of local hiring and wages. this will actually enable the city to do a lot of planning of how we're going to prepare our workforce for these projects and also make sure the developers are aware of what rules they will be asked of when they're building. we do have an amendment to this legislation that i think jon givner will be helping us read into the record. deputy city attorney jon givner, i believe it's around the [speaker not understood] apprentice, correct? >> deputy city attorney jon givner. through the chair, yes, two amendments that supervisor avalos is, is introducing today. one would amend page 8 lines 20 and 21st ordinance which is the definition of apprentice level position. ~ 21 of the apprentice level shall mean a

[speaker not understood] a worker endentured in apprenticeship program approved by the state of california industrial relations. i understand the purpose of this amendment is to clarify that, that the definition covers he apprentices who are currently apprenticing, not apprentices who have graduated from an apprenticeship program. so, you capture a wider pool. >> great. >> and the second amendment is on page 13 lines 8 and 9 amending the definition of prevailing wage to make it match up with similar definitions elsewhere in the code. so, if the definition would read prevailing wage shall mean the highest general prevailing wage -- prevailing rate of wage plus per diem wages and wages paid for overtime and holiday work paid in private employment in the county where the work is

performed for various crafts and time of labor, et cetera, et cetera. so, clarifying that the prevailing wage is focused on the county where the work is performed rather than only in the county of san francisco. ~ of that >> great, thank you. and these will be done [speaker not understood]? >> yes, the committee can make these amendments and pass the item to the full board. >> thank you very much. i'd like to motion we accept these amendments. >> we can take that without objection. [gavel] >> and if we can on item number 5 move the underlying ordinance forward with recommendation. >> we take that without objection. [gavel] >> thank you, colleagues. >> okay. madam clerk, do we have any other business in front of us? >> no, mr. chair. >> all right, we are adjourned. see you at 1:00. [gavel]

>> good afternoon, everyone. welcome to the san francisco board of supervisors budget and finance committee meeting for wednesday, march 26, 2014. my name is mark farrell. i will be chairing this committee. i am joined by supervisors london breed and john avalos and will be joined momentarily by supervisor eric mar. want to thank the members of sfgov-tv covering this meeting nona melkonian and jonathan as well as the clerk of this meeting linda wong. madam clerk do we have any announcements? >> yes, mr. chair. please silence a you will phones and electronic devices. completed speaker cards and documents to be included as part of the file should be submitted to the clerk. the items acted upon today will appear on the april 4 2014 board of supervisors agenda unless otherwise stated. >> okay, thanks. can you call item number 1? >> item number 1 is a resolution adopting a fixed two-year budgetary cycle for the airport, the port, the public utilities commission, the library department, the

department of child support services, and the employees' retirement system, defining term, and setting deadlines. >> okay, thank you. we have kate howard, our mayor's budget director to speak on this item. >> good afternoon, chair farrell, members of the committee. kate howard, the mayor's budget director. the item before you today is a resolution adopting two-year fixed budgets for several departments. i thought i would briefly remind the committee as well as members of the public about our two-year budgeting process and background on that and then talk about the item in front of you. if you will recall, in 2009 the voters adopted proposition a, which focused on a number of budgetary reform items including allowing and encouraging the board to adopt financial policies, adopt five-year financial planning process, adopt two-year budgeting and then also fixed our contract deadlines for

which we have to submit labor contracts to the board. for fiscal year 2012 to 2014, the board adopted the first fixed two-year budgets. those included the puc, the airport and the puc. as you recall, the mta is fixed separately by charter as a two-year budget. all our other departments have remained rolling two-year budgets. the item in front of you today would expand our fixed two-year departments. it would continue the puc, the airport and the port and would add two new departments, library, child support services and retirement. our rationale for including these departments is that they are ~ [speaker not understood] revenue and expenditure out looks are fairly predictable. the library has a space line and set aside. child support services receives as you know state funding for all of its budget. and the retirement -- the operating budget of the retirement system is quite predictable. all other departments would remain two-year rolling

budgets, and that is my summary. >> okay, thank you, ms. howard. >> happy to answer any questions. >> colleagues, any questions for ms. howard? okay. seeing none, thank you. mr. rose, can we go to your report, please? >> yes, mr. chairman, and members of the committee. we do recommend approval of this legislation. we have one minor amendment. the word charter should be inserted as we point out on page 4 of our report, referring to charter section 9.101. we recommend you approve the resolution as amended. >> okay, thank you very much, mr. rose. colleague, any questions for our budget analyst? okay, seeing none, we'll open it up to public comment. anybody in the public wish to comment? seeing none, public comment is closed. [gavel] >> all right, colleagues, we have this item in front of us. can i have a motion to approve the amendment as read by mr. rose? >> so moved. >> can we take that without objection? >> do we have a second? thank you. >> we have a second. we can take it without objection. [gavel] >> and the motion to approve

the underlying motion as amended? >> so moved. >> we have a motion and second we can take that without objection as well. [gavel] >> all right. madam clerk, do we have any other business in front of us? >> no, mr. chair. >> okay. we are adjourned. [gavel]