allowing this practice to continue in the audit took place several years ago. >> yes. >> and it was supposed to be a change and so how is this even possible legally to pay out these unofficial amounts during retirement? >> so, from the legal perspective, i can't answer. and i know when we brought this forward to dhr part of it was the need for the labor contract to be open and at that time it was not opened and they were waiting to reopen it and so i will check back with dhr on their time line with regards to the meet and confer and moving for ward. >> so just for clarity, because it was not my understanding that this was spelled out in the labor contract, and it is not necessarily appropriate city policy, so i am just confused by how it is able to happen in the first place. >> so what i will do is i will, when we go back and talk with

our fire department, and dhr. >> okay. >> and refresh my memory on this particular audit, because there is a reason why the finding is there and it probably is directly, what, the labor contract is saying, and policy. >> yes. >> and i will get back with you. >> and the thing that i know that, there have been a lot of recommendations and there have been a lot of changes, and we will continue to have problems and we will continue as we audit the different departments to have specific requests that we have, but, there should not be a case, where they are allowed to not resolve a particular issue for more than two years. and so, i think that at this point, my goal is to try and close these out, or bring those particular departments before this committee, and hold them accountable, and potentially withhold their ability to actually, you know, pay out in some of these instances, so that this practice, of being

able to circumvent the system that the money that we are issuing to the departments is not abused because that is pretty much what is happening. >> i fully understand. >> okay. >> thank you. >> in 2012, cfa audited human service agencies and the vehicle fleet management and there were four recommendations which remain open. and the recommendation asked hsa to take advantage of the data from its gps system to better monitor compliance with the vehicle usage policies on a regular basis, and hsa reports having developed a continual monitoring system with weekly and monthly monitoring procedures, that went into effect july first, and is in the process of fully implementing the procedures. and csa will consider these recommendations open until hsa, demonstrates its performing the monitoring procedures. >> and, the sfmta has five open

recommendations from cfa's audit of this sustain able street division and two recommendations asked mta to develop, the standard job description and compensation divisions for management parking facilities, reports being in the process of finalizing the job description can the non-profits that manage the parking facility and the other three recommendations asked mta to develop the traffic sign inspections and procedures, and maintain the asset listing of the traffic signs and mta reports that it has implemented a new enterprise, asset management system which is customizing each unit in the department and anticipates rolling out this system to the units responsibility for the traffic signs by the end of 2015. and we were quite aware that the system is being implemented and it is taking some time to procure. and again, once they have implemented the system in a year out we will go back and do auditing and so it is on the

audit plan to go back to this particular project. >> okay. >> and of the 152 recommendations cfa made to the sfpuc in the physical year, 2011 and, 1112, the 14 from the audit reports are unresolved and the open recommendations from the cfa's 2010, audit of the waste management, asked the department to develop procedures to report, inventory discrepancies organizize tools and identify ordering points for tools. and puc reports that it is contracted a consultant to update its written policies and procedures, and it is incorporating important effectiveness and safety parameters into the tool selection criteria, three of the open recommendations of the audit of the crystal springs, golf partners, limited partners and lease the agreement with the puc, asked the department

to connect the late fees and the interest due from the tenant, and some of which he disputes and the three, asked them to improve the disclosure of the water weight changes and puc reports that it is negotiating a full or partial payment of the funds due, during the lease modifications proceedings and it also, intends to have full implementation of the recommendations related to water, rate, completed by the end of the month. so, the puc has made significant systemic changes to the operations and organization of the real estate section to improve the over all lease management and the over all recommendations from the 2011 audit of the puc water enterprise, inventory management asked that the department update and improves the tool inventory management through the technology and solutions and best praks. puc acknowledges that the issues identified in the audit are the department wide, and is implementing the department

wide solutions with broader scope than the reports warehouse specific recommendation and this concludes our presentation, and thank you very much. >> okay. thank you. >> colleagues, are there any questions? >> okay. thank you. and we are going to open this item up for public comment, are there any members of the public that would like to make public comment on this item? please come forward. >> you will have two. >> sir. excuse me. miss jackson could you come forward, please? >> thank you very much. >> dr. jackson again. and you know i came before you, two years ago, and i think that the problems that you all are having, with the different departments is because of the fact that i mentioned to you san francisco is the only city that did not have a state, federal certificated compliance officer. no one in this city is

complying to anything. and that needs to be checked out. why is it, that the city has been getting away with this, for quite some time, so you are not going to get no answers, they are going to come with the excuses and they are still going to be spending money that you don't need to be spending because you don't know where it went, and so i would just like somebody, to find out why is it that this is continued to be happening in this city, without a city certificated compliance officer? and there is not, none, and that is certificated, they got compliance officers. but they are not certificated. and they cannot be certificated. thank you. >> thank you. >> next speaker, please? >> i do appreciate supervisor london breed for you calling about these audits and your question is of two years and how they have not done it

before you got in the office. but let me say to you perfectly clear. that this has been going on for years. and the corruption, and that has been going on here, in the city hall and you need the papers today, and this is the headlines, and the f.b.i. is here, and they have been checking on the mayor, and those are the city hall has been going on for a number of years, corruption. and because of some of the supervisors here, asking that the lobbyist and the king pin and willie brown helps to show the faith, that means that everybody got to come forth, to show their face. what they are doing. now, the rest of the people that you are in the department head supervisor london breed, is other interesting and although the planning commission, oewd and the redevelopment agency and the housing authority, and to name a few. i i think that the f.b.i. needs to come and knock on this and the list of all of the departments. and particularly we deal with

the african american, black negro and how he want to categorize us, and we are in a state of emergency, and if you study to see what happened throughout history, it will be more mystery. so, i am happy that you are there supervisors and i hope that you will continue to and we are here to support you because you know that you are alone, and (inaudible) and we know that you are representing us. and i would never get up here and try to say that we are doing anything, i am supporting you, continue on. but in fact, we need to add some more names to that list, seeing if they... not just two years ago, just go ten years and 20 years, and you will see what i see, it is corruption. from the head to the toe. continue your good work, supervisors queen bee. >> thank you. mr. washington. >> (inaudible) city hall and

the government agent and (inaudible) totally harmless in this (inaudible) >> public comment is the time for... >> to comment and not ask questions. >> all right. >> all right. >> we can get you an explanation. >> thank you. >> okay >> any members of the public, would like to make comment at this time? >> yeah. >> under the member of the san francisco coalition, and it was a agency that was due to the compliance from the center when they were building, the center,

and we made sure that all of the different nationalities who worked on that building, you know it was. and i worked there and i am with the san francisco correlation and the executive director and on this construction going on in the city to date, you don't see no i mean that the people are coming into the city from out of the city, getting the jobs from the residence here and i don't think that there is a compliance officer, looking at the employment of how you assign the people to work on these jobs. i know that is not concerning this matter but i wish that you would look like that too. >> are there any other members that would like to make public comment? >> seeing none, public comment is closed. >> okay. >> colleagues, any other questions? >> all right.

so, can i have a motion to continue this to the call of the chair? >> so moved. >> okay. >> without objection? this item is continued to the call of the chair. >> madam clerk, could you call the next item please? >>hearing on equity and inclusion in the hospitality and travel related industries including the recent report released by the working group on african american inclusion and diversity in travel and hospitality. >> >> okay, before i turn this over to supervisor cohen i just want to make it clear could you silence your cell phones and could you please cut down on the talking in the background. because we can hear it and we are trying to listen, to the folks who are speaking before us. and if you have a conversation that you need to have, could you take it outside? and this is when we open it up for public comment, public comment is the time to comment, and unfortunately we may not be able to answer your questions, right away but we want to be sure that everybody has the opportunity to make public comment on this next item. thank you all so much for being here and with that i am going

to turn it over to supervisor cohen. >> thank you. >> good morning, everyone and having for coming out today. and so i just want to by way of background, just introduce why we are here today. the hospitality and travel industries are some of the largest industries in our city. just last year, in 2013, san francisco benefited from a record of 16.9 million visitors who spent over $9.4 billion dollars in our city on tourism-related activity and we only expect that number to continue to grow in the coming years. hotel tax revenue is up, 8.1 percent, to 607 million dollars and tourism jobs have increased to 3.8 which is a total of 76,834 jobs. and hotel room rates have also risen, 12.8 percent to an average of $207 per night. and even though we see all of

this growth in the millions of dollars, being spent right here in our city. some groups are not seeing, or reaping the benefits overwhelmingly these groups have included specifically the african american community. and earlier this year, a coalition of leaders and businesses, governments and industry, and education, all convened, and lodged the city's first initiative on equity and inclusion in san francisco, tourism and hospitality industry and in this working group issued a report that outlines a framework and tangible commitments that the city can make to enable and support the inclusion of the african american, and the african americans in this respective industry. this hearing is timely and as i introduced and passed with all of high colleagues sponsor ship, legislation to commemorate the freedom trail and to highlight the social,

and the psycho, social and impacts of the african americans, community inside of the city. on education, on entertainment, and as well as civic life and so colleagues and also, san francisco and members of the public, we are here because the people in the african american community are missing out on the employment industries and the booming industry, when as in the african american unemployment rate is close to, close to 3 times that of the other racial dem graphics and so we have a major problem here and we have to begin to turn the tides and so the purpose of the hearing is not only to highlight the important work that the working group has done, but also to discuss the obtain able recommendations within the report with an effort to take another step, or to take the other steps toward

equity in our city and to increase diversity in these important industries. i have a few presenters lined up today to talk about the work that was done, and i am going to call them up one by one and i would recognize theo miller from the mayor's office to give us a brief summary of the work that was done and we will have john from sf travel and a moment from (inaudible) who is a native of local two, and carroll represents the hotel council and fred jordan is the chair of the african american chamber of conference. >> before miller gets started i think that david chiu and i want to just say a few brief words. >> i just want to be brief and we will get started with the presentation, because i know that all of you are anxious to provide feedback with this hearing, and i want to thank, supervisor cohen for her leadership on this matter, this

is definitely very important issue, and i know that there is a number of leaders here from san francisco, black chamber of commerce, and the folks from sftravel, and working together, and i think that we could make sure that the industry is opening its doors to the african americans for employment opportunities and other things that exist, all over. and thanks, for the leadership and i am looking forward to the presentation, and looking forward to the feedback on how we can work together to make this city more open and inclusive to the african american, and president chiu, would you like to say a few words >> thank you. >> i also want to say that i am happy and i want to thank supervisor cohen for calling this hearing, this is actually a topic that we have discussed a number of times over the past year. my district includes our major tourism industries and supervisor said, we talking about an over 16 million

tourists every year and 9 billion worth of revenue and we need to make sure that this economic engine for our city is with all of the folks and as someone who first moved to the tourism neighborhoods that i represent to work for an organization, in this select community, this is a very, very important topic i think for all of us, and i think that i found the stake holders that are here to have the opportunity to have a discussion, both with the tourism, leaders as well as business, and chamber leaders from the african american community and i do know that there have been organizations and we have much more progress to make, and i look forward to new ideas that come out of this and i want to mention a few years ago, the number of leaders from the fisherman's wharf came to my office and wanted to think about the out reach to more diverse job applicants and we worked to kick off a job fair in the day

view and the plaza and we are continuing to do these out reaches throughout the city and but this is just one of many ideas that i know have been discussed and we need to do more and we look forward to the conversation that we have. >> i am giving out the report. >> thank you. >> chair, and supervisor tang, and chair, and cohen, and chiu. we are so excited to be here this morning to present to you what we think is a successful model and we know that we thank you all for your leadership on this issue. and we think that this is a model that can actually work and change the tide and equity and inclusion in this city and in particular with the respect of african americans to participate in the higher wage and growing industries and also, coming out that this has

been a cross racial coalition, and we think that it is a model secondly for that, that it is across a group of stake holders and who are outside of the government. and that have successfully implemented or started the implementation activities for something that is persist ent in the city. and so, we will move to the presentation. and the general structure that supervisor cohen mentioned is that i want to give the different information on the contributers in the background and we will give a little bit of a supervisor breed in particular, less of the data and so we will give the data on the snapshot and what we see is the hospitality, and we will turn it over to the colleagues, and findings that we do have the supervisor's request and the suggestions and the thoughts on those steps to the board of supervisors. >> so, in terms of contributers, as supervisor cohen mentioned, this has been a coalition of over 60 leaders

representing san francisco community faith based community, that is the sf travel and the naacp and the chamber of commerce from the beginning and i am the senior advisor to the mayor. and the african inclusion and i also serve at the public utilities commission as a policy and government affairs advisor and so the city was really second to the party if you will and this was a community-driven, from the very beginning and continues to be implemented in the city. and so these are just some of the stake holders who have come to the table, local two, and the hotel council, and university of san francisco and so many more. in terms of the background and timing, time line, this process started in earnest in september of 2013, showing the community

engagement from the naacp and the president brown, and san francisco african american chamber of commerce and conversations with sf travel on how can we open it up and be more ininclusive and it started out is how can we market more of the diverse community into the growing industry? >> and this, was all of us were in gaged in the mayor's office sxh in the course of january to april, of 2014, there was a formation of the broader coalition, in many ways, and we discussed the coalition of union and hotel, and the government leaders and the stake holders, where through a community process, we formed working groups, and established implementation structure and also because the contracting was key to this process, of the services and inclusion in this growing industry. we really needed to have the leadership of the dpw at the table. >> and over the last, couple of months, or the few months, we have continued to present, the working group findings and the implementation activities and we have had the briefings with

the mayor in the mayor's office and the board of supervisors many of who have been so supportive of this and the formation of an executive steering committee is due out, by the beginning of august. and this will, over see the continued implementation of these recommendations. in terms of the snapshot and why this was such an important opportunity for the city, and many of these data points have been alluded to in terms of the disproportionalty in terms of poverty, and 71 percent of the african americans in the city are extremely poor and low wage working and personality in terms of unemployment and of course the disproportionalty of meeting the households and we know that at migration, but, the city's population has grown, and the wealth has grown, every other ethnic group in the city with the exception of african americans, whose median household income has declined since 70, and we decided that the stat says that

almost 17 million visitors spending 10 billion dollars and generating almost 300 million in hotel tax revenue and we feel that we have many opportunities, and many of our historic african american communities including the bay view and the fillmore. so meeting forward, this process was set up with five working subgroup and committees, excuse me, and the inclusion, and secondly the subcommittees met no less than five times in the period of five months to figure out the implementation of the activities and the cost of neutral way, and we will get to that in terms of the recommendations and this is the development of the technical

assistance. i will return for the closing meants but i would like to give to john, to talk about travel and diversity and inclusion. >> thank you. >> it is a pleasure to be here, john from san francisco travel and thank you for calling the hearing. first of all i would like to thank the naacp, the african american chamber, and the organization as well as all of the other organizations that participate and became our partner and we appreciate the partnership because it is through this collaboration that san francisco has been able to improve our efforts and further our mission of attracting visitors to san francisco.

when we first began in pro-stes about a year ago at our offices of san francisco's travel, we saw that there were two faces of travel, and tourism that needed to be addressed and the first was the external face, and how san francisco is portrayed to the rest of the world and the world that we felt could play a significant role in. and we are blessed in that historically, san francisco has been viewed as an ininclusive and welcoming to all of those, and all walks of life. and examples include, the welcoming of immigrants, and china town, and north beach, and the mission, and these would not be what they are known for today, without the chinese, italy an and the latinos immigrants who were welcomed and we have the assets of the fillmore and the bay view and the western edition to help to celebrate the contributions that the african american community has brought to san francisco.

so, in order to live up to this promise, we need to attract, a diversity of traveler not only to add to the vibrantcy, of the diversity of our city, but also to support the small businesses and attractions that speak to and attract, the multicultural heritage visitors including the african american visitor, and so as a result of this pro-process, san francisco has a commitment to ensure that diversity is celebrated. and when we have taken the steps to actively promote the city assets that appeal to the multty cultural heritage traveler. and to keep us focused and to keep us honest in this effort, we are establishing a diversity of advisory council, which will, be connected directly to our board, with the board participation and the requirement to report to our board. and now the second phase is that we are internal phase,

what would be the workforce in san francisco when it comes to diversity. and it is through this, examination, that we have identified, a role, to help address this issue, and that role, is to help connect tourism to neighbors traditionally known for their ethnic and cultural diversity including the fillmore, western edition and bay view, and some of the steps that we identified are the creation of the supports for the creation of the community benefit district in the fillmore and the support for the products that appeal to the multicultural visitor, such as the freedom trail, which we appreciate your efforts supervisor in create thating and look forward to bring that to fruition, and i will conclude by saying that san francisco travelers are proud of our participation in the working group. and we are encouraged by the work of the working group and we will look forward to implementing the final recommendations that are in the

final report. and happy to answer any questions. >> thank you. >> thank you. very much. >> next speaker, kevin carroll from the hotel council. >> i am sorry. actually, sense you are here, you can go ahead. >> pines, you will be next. >> okay. >> good morning, supervisors thank you supervisor cohen for calling this. and my name is kevin carroll and i am the executive director and impart of the working group that is called that is regarding this report that we are talking about today and i am also a member of the subworking group that has been put together, that includes the hotel council, and 7 of our major hotels and the hr directors and the local to kasey and pines and as well as thomas from the office of economic and workforce development and we have been leading and developing the process, right now. and the first thing that we did was finding way to attracting and having the opportunity for not oebl the community based organizations but the off can

americans to learn about the hotel industries and the jobs available, and so the first thing that we did was developed a show case, that we invited, over 60 community based organizations to, and we held that on may 14th. and at that event, we had both hr directors there, for this community based organization to meet in person to be able to connect with them. 12k3 we had a panel of employees within the hotel industries, and including african american employees that were able to talk about the experience in the industry, and share their insights into the hotel business as well. and pines, from panel, and helped work with the group. and then at the end, we had a networking session to allow all of the groups to interact and that we felt was a great first start to be able to get the individuals into the same room and be able to talk about the programs that are available and make the connections which are already paying off. >> second what we did is we created a second internship program this summer and we planned to repeat it every