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 that the city should look towards meeting and we certainly appreciate the comments from the cao's office about working to get data to support that goal, but it is

not a goal that needs to be directly tied to availability, as we used to have to do under the old mewb program where legally there has to be availability in order to set a goal, now we can be and we think that we should be much more aspirational about how the goals should be set, where should be we at the city if we want to support our small, local business community, how can we get there? the small business community and the economic engine of this city. and they should recognize that as an asset and work to increase that. we think that there are tools that the departments can have that can do that more. >> thank you. >> thank you. >> very much. >> next speaker. >> good afternoon, supervisors, my name is mcu, and with the

architect and engineers and uls i am a microble structural firm owner. and so, today i want to emphasize one particular item. which is microbusiness as set aside. and we just had some after the presentation, and the limited information and so would i like to have more detailed information about the status of microbusiness set aside for the grant and which department has implemented the program. and how many contracts have been awarded to the service and the microbusiness and in what amount? basically the microowner and like other business owners i would like to stay in the city to do the business. but, in the meantime, i really like to have something, and a little bit and a small share of the city opportunity, thank you very much.

>> are there any other members of the public that wish to speak on public comment? seeing none, >> all right. public comment is now closed. >> i would just have one follow up question for city administrator boris and maybe you can help to answer this. mr. selserm an mentioned that given that the focus is now on the local businesses and the suggestion ta we need to have the complete data is not paramount, what is your thought or your response to that? >> i think that we have engaged in the process currently for an out reach initiative to go out and hear from various stake holders whether they receive the departments prime contractors and subcontractors, on the future lbe legislation, and as we engaged to the community process and we hear from the stake holders we are complying a report and make until that process, the community process is complete, i would like to hear, and we would like to hear from all of

the various stake holders prior from making the decision. >> let me first just start by thanking the city administrator's office and all of the departments for the work that i know that you have done in the last couple of months since the last hearing, as you know there is a lot of frustration about the lack of data and i think that we are moving in a better direction and let me also say that it was four months ago that we had that conversation and i am a little disappointed and i will have a conversation with the controller's office as well and i would hope that we would made a little more headway on collecting that data and i don't want that to get in the way of being able to move forward with proposals and for members of the public as we said at the outset of the hearing there are two additional workshops that we are going to have to gather more information as how we improve the chapter 14 and those will be a hearing, and on wednesday, june the 18th from five to 7 p.m. at the african american art and complex, and the final hearing will be on the west side in the ken set,

and on friday, june the 20th, from 9:30 to 11:30 in the ortega room of the san francisco public library on 3323 ortega street that being said, i do look forward, shortly after this workshops are closed of really pulling all of that information together, and comparing it to the various proposals that are out there and hopefully in the short period of time i would like to along with the city administrator, unveil some initial proposal to move this conversation along. and from my perspective this is my 6th year of having a conversation around this and frankly it has been six years of hearing the frustrations that a lot of the local businesses have, for many of you it has been a couple of decades and i do hope that we will be able to and a collaborativive way to really move this conversation along and it is my hope in the summer months that we will be able to get and once we have the proposals out there and the additional reactions and be

able to move the legislation quickly after that. and so with that, and unless there are any final comments. >> no. just want to thank you, supervisor chiu, for calling this hearing and i know that this program is about as old as i am and i know that it is definitely time for change and i spent some time in my previous role working with supervisor chiu on issues and legislation and dealing with the contracting world and so i heard from the community loud and clear about the need from some improvements and so i want to thank supervisor chiu and all of the department of relative and the community members that have shared with us and kept the offices informed about what is happening out in the real world and so with that, i will be there, at the workshop in the sunset district along with you all to hear what you have to say and with that, supervisor chiu, would you like to continue the hearing to the call of the chair? >> why don't we call this hearing item, likely if we introduce legislation, perhaps later this month, within a month, we could have a hearing on the legislation, that had the least i would like to keep

this hearing open so we can continue to monitor the progress. >> all right, continue to the call of the chair without objection. >> and madam clerk, are there any other items before us today. >> that concludes our business for today. >> thank you. >> the meeting is adjourned.