been helpful, and in maintaining our microlbes and in making and helping them to get the contracts with the cities and helping them sustain, an operation here in san francisco because we want to grow the program. and so, part of the analysis that we are doing, and that will hopefully be part of the legislation is also looking into these different programs. >> okay, and shifting to another topic around oversight, as you are aware there are 14 b requirements around the audits at least three prime contracts each fiscal year of 10 percent of joint ventures could you summarize, whether this has been done and what has been the result and what sort of lessons have you learned from these audits? >> what i am going to do is, oh, there she is, okay. >> maria.

>> good morning, regarding the audits, we go through annual audits with the controller's office. and the emphasis of the audits have been taken a little bit of a interdepartmental emphasis and we would like to work with them to change the dynamics and so we are working with the csa unit. >> so you are saying that the audits did not happen? >> yes, they have been happening every year. >> okay, and what have you found through those audits. >> different recommendations for one of the recommendations that happened last year was that we should have a tracking system that was not in place and that was implemented in july, with the lba and uts. >> okay. >> and we are in transition right now, and they, and with the recommendations that we were working with the new recommendations. >> okay, and the audits of the joint ventures have also happened. >> i am so sorry. >> the audits of the joint

venture haves also happened? >> yes, not at this year, but it has happened in the previous years. >> what have you found from the audits? >> from the previous audits one of the changes that happened in the ordinance was that the construction and joint ventures were taken out and because it was found that there were some issues. and so that now does not exist in the ordinance because of the recommendations. >> okay. and then to the question that i pose to the city administrator, and so your office has been working closely with the controller's office? >> yes, it has. >> okay, and what is your sense of how long it will take to collect the data to get a sense of whether the market exists for us to let an over all goal and some of the other ideas that have been floating around? >> and as our city administrator mentioned it is a big undertaking with a lot of

data. and she has been working and monica and several of the people working with us to insure that we have the correct data, and we are trying to look and see, because this, and there is just a lot, and a lot of data. >> okay. >> and from $100, to billions. >> got you, okay. thank you. >> thank you. >> two other categories of questions for miss kelley. >> as you know in the local hiring world we have recently extended the local hiring to the private development project and there is discussion whether the lbe should be expanded and what are your thoughts on that idea? >> i think that is a great conversation to have and we are already, we already are looking into what and now it has moved to a redevelopment area and so that they will have to have lbe goals but we, and we already through vmd and the prior to that hrc have been working with

the public, private developments where they do include the lbe goals and so we are support of that. >> great. and so could you talk a little bit about enforcement of our existing provisions regarding suppliers, brokers and others, what are your thoughts around that world? >> so, it, and i think that, you know, as we have transferred and i think that we should definitely continue the enforcement of that brokers are, and when it comes to commodities are you talking about with suppliers and you want to be sure that we have suppliers that do have a warehouse here in the city and i know that it is difficult and that the city does not yield it self-to warehouse space but we do not want to be paying markups unnecessarily markups and so, the certification process, they go out and confirm that there say

warehouse that is supplied and stacked with the supplies that that vendor is selling. and we can, and we are beefing up the certification process right now. and we will continue along those lines. >> okay. >> thank you. and i know that we have a number of other department representatives here, maybe we can go through them. >> why don't we call up from dpw stacey camille? >> good afternoon, i am the division manager for contracts at public works. so i am going to go over first i have a couple of slides here, the first slide we are going to talk about contracts awarded in 2122 of the past physical year, and if you notice on the left side of the page, of the 34 worded contracts and so the q122 we ordered 34 contracts and it is a combination of construction and professional

services. and of those contracts, 26 were lbe primes, and 8 were not lbe primes and you will see the break out of the categories underneath that list, and so of those 26 primes, 13 were minority business enterprises and five were other business enterprises and seven were women-owned business enterprise and that one was an dbe, lbe. and then if you look to the right on that, and is the monetary awards and the total amount was 51.3 million or 2122 and of that 40 percent went to the lbe primes for 20.4 million and non-lbes got 8.5 and i broke it out to the right to give you an idea over all and then i went down and i specifically did lbe subs of 11.6 million and so of the subof those prime contracts or

non-prime or non-lbe contracts the subcontractors, the bles were 11.6 million and non-lbe subs were 9.1 and you will see the break out below again of the specific mbe and wbe categories. now, that was awards, and so the distinction is awards verses payments. so me the money, so the next slide is the total payments of about 5.4 million dollars. of that, 4.1 million was paid to prime and i mean, lbe primes and subs and so they combined those numbers and 1., approximately, 1.2 million were paid to non-lbe primes and subs and then again, i broke it out by different categories and mbe and wbe to break out the lbe prime subcompliment, okay? and i talk a little bit about

the dpw out reach to the community and we have been partnering and i know that you will hear from the puc about the contractor's assistance center and first of all we participated in the monitoring vendor fair in 2013 and we got a lot of interest and got to interact with a lot of local business enterprises and our focus this year is on microlbes and you will see that in the next slide and we were doing a lot of out reach and focus on educating micros, to be primes because that is a problem, especially in the construction realm a lot are used to be subs and i will talk about that in a second and we conducted that public works, microlbe town hall in november of 2013 and we had a great turn out for that and following up ever since with the microto get them in the mix for the contract awards and i worked with the puc staff on avoiding bidding pitfalls and we did a workshop back in i guess that it was in april, and i believe. april, to talk about or do some education with the contractors

on how to do bid document as a primary children's and so again that is some of the pitfalls that they do especially going from a subto a primary children's. and we are going to conduct another one this summer with the puc at the contractor assistance center and so i have been working with their team and also at public works we are going to conduct additional public management and other trainings targeting to bridge that gap between being sub, to becoming a prime and we are hoping to do that in the fall of this year and i wanted to point out one other metric on the last slide there, is out of 7 possible micro, lbe contract ordered during 2122, 7 of them did go to microlbe and that is great and we have a good trajectory and i wanted to point out that the director made a goal for us to award as a department 25 microlbe contracts and as of today, we

ordered 34. so you will see that of those you have got 15, additional, and i mean, i am sorry, 8 additional contracts that are awarded in q3, to micros, lbe set aside and then we will see on the veteran's building seismic upgrade which is right across the street and you probably see the construction going on and the team focused on targeting the specific micro, lbes to have the grade subcontractor as part of that cmg project and so the construction manager, general contractor, integrated project delivery type of contract, and those were a total of 19 and so you will see about 20 million dollars worth of microtrade subcontractors were awarded for the upgrade. nae. that is all that i v >> thank you. >> why don't we call up miss

force. >> good afternoon members of the committee, my name is elaine ford and i am the port cfo and inside of my difference of it is the administration, it is a small chapter 6 department to give you a sense of scale, last year we awarded ten contracts in the amount of 17.4 million, thanks to the san francisco voters and the parks bonds and our ability to do public projects like the cruise ship terminal, payments were much stronger at 73.4 million last year and 12.9 million of that went to bles and the port commission and our executive director have for a very long time been very focused on the program and getting our opportunities to lbe. and so we focus a lot on out reach. and for many years, four or plus, we have had a reporting requirement to our commission, and quarterly and that shows, contract awards and contract payments and we have also been

expanding the opportunities beyond the requirement of the ordinance to our development partners. so while it is not required now, yet, our development partners through the ena and have entered into the programs or related to the lbe program as well as the local hire. and recently, we have been looking to extend the opportunities to our leases because while the port does not have a very large contracting program, we have a lot of tenants and we have the opportunities through them. and so now, we will get to the numbers and so, in the first two quauters of this year, we awarded two new construction contracts. and both were awarded to lbes and we awarded three as-needed environmental awards and so those are as-needed agreements totally 3 million and one was awarded to a microlbe and the subcontracting goal on all of those is 21 percent. and so, of these contracts

awarded of a value of 4 million, almost half, will go to lbes either through the primes or the subs. and we also awarded three informal contracts, that are not and the ordinance does not trigger subconsulting goals but one was awarded to a micro, lbe and i spoke briefly about our efforts and we are look at all of the contracting opportunities, that are coming up, and tried to do out reach well in advance of the bid going on. and we recently have done the out reach with the chamber of commerce, and the puc's technical assistance center is a wonderful resource which you will hear about more and we have been doing the prebids there and working with cmv and attending the vendor fair and as i mentioned we have a long standing requirement that helps you to see that we are meeting the requirements and finally in terms of expanding the

opportunities, the metro cruise, and the metro cruise services which is the cruise terminal operator while not required by the ordinance has developed an lbe plan, which focuses on some micro, and the concept of a microset aside and getting the word out to business sos that they are provisioning the cruise ships and special events at that facility. and we also have set aside space, leasing space, at pier 33 half to get the opportunities for the small businesses to locate at the port with the technical assistance and then we have an ecocenter at the park and another leasing opportunity where we developed a partnership and have a community based lbe dl and we working now on our parking management opportunities to try to divide the work, and get lbe participation and do more mentoring and partnerships between the prime and the potential lbes. now to the numbereds, for the

first two quarters, we talked about how many awards, 52 percent to non-lbe and 25 percent, lbe and 23 percent lbe subs and there were 348 percent of our awards and the first two quauters of the first two years and, 254,000 and 98 percent of that was paid to lbes and this just happens to be the way that the numbers fell in those contract awards in the first two quarters. and so with that i am available to answer any questions. thank you. >> why don't we now hear from the puc. >> good afternoon, supervisors. i am ivy fine head of the program administration for the is the fpuc which includes the contract administration bureau and i am going to show you three slides that will highlight the lbe participation on sfpuc contracts as well as the contracting initiatives and

around improving lbe contracting opportunities. under the direction of general manager kelley, the puc has made a concentrated effort to unbundle contracts and increase lbe, participation when possible and i think that our numbers will show that we walk the talk. over all sfpuc awarded 150 million dollars of construction and professional services contracts during the first two quauters of the current fiscal year. and total payments to date, have totaled over $28.8 million. of which, just over $22.4 or 78 percent of those payments are to lbe primes and almost two million or seven percent have been to lbe consultants which is consistent with the award data you are about to see. this first slide shows the lbe participation on our construction contracts.

the sfpuc achieved 92 percent, lbe participation on the 17 contracts awarded in q1 and 2 in the current fiscal year and this means that of the 62 million awarded 56 million stays in the hands of the lbes at the primary children's and subcontractor level. this slide is divided into two sides, to show contracts awarded under ten million and over ten million, i think that this distinction is important because of the traditional ten percent of the lbe discount is only available on the contracts under ten million and a smaller two percent sbe the discount is available on the contracts between ten and 20 million, the left side side shows a great story of the 14 construction contracts award under ten million, the lbes are prime on the 13 and participation is over 90 percent, the right-hand shows that we have awarded one construction contract graded at

ten million to the construction and the lbe prime contractor and all of the subcontractor utilized on this contract are lbes. next slide shows professional service contracts. the sfpuc awarded 16 professional services contracts during the first and second quarters of the current fiscal year, totaling nearly 90 million dollars. and these contracts ranged in scope of services from the community out reach and support, real estate and land negotiation and services to engineering and design of the digesters in the south east section of the city. due to the technical and highly specialized nature of the contracts it is challenging to sustain the same level of participation on the professional service contracts as the construction contracts that said, we are still proud to report that 12 out of the 16

awarded contracts went to lbe at the time level and the lbe participation is 63 percent, and the lbe participation is 14 percent on the contract that was awarded over ten million. under the direction of our general manager, the sfpuc continuously strives to create opportunities for the lbes. we have a list of some of our initiatives on there, and i am not going to go through all of them but i am going to highlight a few. the contractor assistance center which opened in december of 2013, you have heard heard from the colleagues that you visit the center for consultants and contractors to connect with the city contracting opportunities and we have partnered with other city departments including dpw and the airport to conduct contracting seminars and post the plans and specifications and in september of 2010, sfpuc was the first department to

launch an ongoing submitting system to submit the invoices electronically and provide it with the real time payment information. the system has increased transparency and enabled us to meet the mayor's prompt director and stream line the over all payment processes and just as an example in the last six months, we processed approximately 300 invoices per month with the payments totally approximately, 44 million dollars. the city administrator kelley mentioned earlier, about the lbe advisory committee and the sfpuc is very proud that my co-worker is co-vice chair of the committee. all of these accomplishments are great, and we know that there is more work to be done, examples of sfpuc's continued effort to increase the lbe contracting opportunities that are in the pipeline, and include that we are working with the cmv to develop a pilot mentor program, the goal was to

foster partnerships with the established previously successful contractors to advance, business, learning and networking opportunities, for perspectives, and the program will enhance the capability of the participants to compete more successfully for the city government contract and contribute to this strength and vigor of our economy, it is also working to establish an lb contractor, advanced payment program that will provide financial assistance to subvendors by increasing the cash flow on the city funded tracks and although it is still in the infancy and the idea is that after the prime and contracting department agrees on the work to be completed the city will advance the payments for those services small, nominal fee will be applied for the stavesing cost and so the programs will cost neutral. >> the one question, the data that you have given were around the contracts that you were awarded this year and i know

that the other departments provided information around of what you actually paid out as far as actual payments? do you have that data and how does that track? >> i spoke to it when i first during the beginning. so, the sfpuc we have aregarded $150 million, of contracts, and we have had total payments of almost $29 million. and $22.4 of those have been to lbe primes and $2 million to lbe subconsultants >> that is the amount on the $150 that you awarded? >> yes. would you like mow to break it down to them. >> just a general comment to all of the department and really to the city administrator and i appreciate that they are on cue to the awards and what was award and what was paid. based on what was awarded this year, what i have not really seen over the last few years is just understanding over time

what was awarded verses what was paid, and it is an issue that continues to be asked by the contracting community and i am wondering if that data exists in a more macro level year by year for various departments. is that the data that we could get? >> absolutely. >> great. >> boris from the monitoring division, the qone 11 report includes payment information and all of faout tur reports will also include both payment and award information. and cumulative as we go forward. >> is that data that we could get for 2012. >> we have award data on a 2012, on a contract by contract, we can look at closed out contracts but not cumulative. >> just really 2013 is the only year that you will have that information. >> yes. >> that is a work in progress, thank you.

>> and our final presentation, sean mcfaden from the rec and park. >> good afternoon, just briefly, that set just a little framework at rec and park and i manage the contracts and we have our relationship with dpw and so, they are our big brother and machine and administer some of the larger contracts and i focus on the smaller, formal professional services and informal contracts. and so briefly, in the first and second quarters, awarded 6, 14 b governed contracts and all of them were awarded to lbe, or lbe jbs for a total of 5.2 million dollars. and 46 percent of the dollars were to lbe primes and 32 percent to the lb subs. and to date, just under a million dollars in payments have been made, and 94 percent

of those payments were made to lbe and at the prime and sublevel. >> just a touch on a few of the other opportunities that rec and park has. we have been very successful in awarding professional service contracts to lbe, and lbe jb firms and currently we have four construction management as-needed contracts and two architectal design for rcre. center and for informal construction, during the last two quauters, rpd used the microset aside program for one informal contract, and jose a second, microset aside was just advertised yesterday and a third is planning to be advertised in the next month or so. and so we are doing well there and there is a lot more opportunities coming for the microset aside program. >> for job order contracting, we have three existing job order contracts all three are

with lbes, and one of the joc contracts was processed through the microset aside program and so i think that we are doing a great job, using the program, and it is a combination of good work with the department and relationship with the cmv. >> great, thank you. >> all right, i just have one global comment which is means that these departments are doing a pretty good job based on these numbers and so 40 percent over ego, what do the folks think? why don't we now go to public comment unless there are any other close out comments from the city administrator's office? >> we can ask the members of the public if you have any questions that you would like to make, each member of the public will have up to two minutes. and let's hear from our first speaker. >> thank you, supervisors. thank you for holding this very important hearing. my name is alex and i am the president of the coalition for

economic equity. and which is a coalition of various minority owned businesses, and trade organizations. and our members consist of the council of asian american business association, which in turn is umbrella organization with the asian american architects and engineers and the american contractor association and i am sorry, the association of asian american attorneys and cpa firms. and the other members, the filipino and the american and the contractors and engineers and also the san francisco african american chamber of commerce and the asian inc and we look forward to continuing our working relationship with the supervisors and with cmd to come up with some changes to the lbe ordinance. and thank you again for holding this hearing. >> thank you.

next speaker. >> president chiu, supervisor tang, my name is julana summer and i own a microlbe business and i also represent the asian american contracting association as the president. and i just wanted to bring up a few points that have been under discussion about the 14 b, and just generally, the contracting community the asian american contracting community favors an increase in the threshold for the businesss that qualify as an lbe, and generally, favored and it is not resounding, and however, there is resounding agreement that the goals for local business utilization are firmed up and increased to 40 percent. and as cao and cmd, we are very interested in seeing what the controller's office has to say about that. there is also strong agreements that a very robust microset aside program be nurtured to

insure that the small companies stand a chance and we would like the board to recognize, that all of of these changes really need to be made in tan tum and personally i would like to see an increase in for example, the threshold to increase the availability of the lbe and that it is not at the expense of any small companies, the program was designed to do and so we want to be sure that it is not at the expense of any microcompanies. and then, finally thank you, president chiu for calling this hearing and the february hearing as well. >> thank you, next speaker. >> good afternoon, supervisors, orrin from the lawyer's committee for the civil rights and also speaking on behalf of the coalition for economy and as he mentioned it is a coalition from various agents ask we were able to pass the original in 1984 and we have worked to strengthen and defend the ordinance we, believe that it is really time for a new

chapter, in this city's thinking on contracting everybody, and as folks know, the original ordinance was intended to remedy exclusion it has focused more to small business inclusion and why that is disappointing that that shift has had to occur because we know that the me and wbs will be disproportion atty excluded and there is a silver lining that from a legal perspective the city can be much more aggressive now in thinking about how to grow and increase opportunities for small, local businesses. and so, for example, city wide goal can be much more aggressive than we used to be in the past that is why had suggested that 40 percent is a goal that is aspirational and