>> good afternoon. >> my name is morrah bora, president and ceo of security services. i would like to thank the sf mta commission for an allowing us to provide services to this agency on the contract. black beer has been providing this for san francisco for more than 18 years and in good standing with the contract monitoring division and have been on leb last year. we are enthusiastic to partner with andrew international and providing this service. we have worked on this contract from

november 2010 to 2012. we are very familiar with the sf mta requirements and look forward to providing services for sf maet. >> thank you. >> good afternoon. tompolist council for security. i want to say that rumors leading to this contract. we would like to deny these allegations and if the board wishes we would like the opportunity to respond. >> thank you. next speaker, please. >> jonas ten rooud. >> mr. nolan, members of the board, i'm the chief operating officer for

cypress security. i would like to point out the way this contract was handled. contracts are put out on a cost and merit bases and not on coast alone. we have transit security in the local region and the west coast. to name a few local recent awarded contracts, ac transit and they are all awarded on a base of merit and cost as well. i believe that this is reflected in the fact that only three companies ended up bidding on this $30 million contract whereas you have 20 companies bidding on other contracts. the sf mta security contract following minimal requirements. thank you. >> next speaker, please. good afternoon, chairman

nolan and director. my name is cast nar abused -- budis, we have been providing services for the last eight 8 years and are familiar with the challenges in doing so. at the last board meeting you heard from both employees and union officials of their concern that their wages might be slashed because the contract was going to a low bidder which at the time was a non-union company. over the last two 2 weeks your staff has worked hard to address those concerns and bringing this contract back to you with andrew commitment now paying those union scale wages. a happy ending it would seem. sf near maet t mta gets

services. hardly. when it comes too easy to be true, it usually is. the red flag is flashing a warning here to take a hard look. the time for due diligence is now and not when the problems begin. only three companies submitted a bid which is the largest contract in the bay area. that should have you call for questions. the two union companies, abc security and cyber security who are aware of the wages both bid i dental cal numbers, 6.4 numbers. andrew 8.9 million. 25 percent less. of course at the time andrew submitted it's bid it was not required to pay union scale. andrew has not promised to do

that and it's worth noting that andrew to this day does not know the wages and benefits to this officer as they didn't know this and potential bidders did. this is voodoo map and it requires andrew to demonstrate how they can perform on this contract with those prices which is primarily wages in this industry. we can demonstrate easily to staff and anyone else that it is not mathematically possible. maybe they are prepared to take a loss on this contract. if that's the case, you should know that. once you know that, it is irresponsible to not require financial guarantees on this contract to protect what is an unviable economical contract. the $800,000 bond is not enough on a

$30 million contract. in fact the information they submitted is not theirs alone. unsecurity needs to provide this. thank you. >> michael molly and he's the last person who turned in a speaker card. good afternoon, my name is michael mali and the security for council vice-president for united service workers west. i would like to thank sf mta for considering secure officers wages, benefits and working conditions and doing all that you could to ensure that we would have a company in there that follows the cba and also that during a contract transition from one security company to another, it is almostways necessary to concern that the wages and benefits are maintained and the union accounts well

over 100 security officers. so united service workers west will be diligent to monitor the services to ensure there are no cuts. we ask the sf mta also be diligent in your oversight of this contract. we hope if there are any issues to come up that you support us in the future. >> thank you. anyone else care to address the board? >> seeing none. the hearing is closed. members of the board, we would like to hear response from staff on this issue? >> i will ask staff to come forward. i will just open by saying that we undertook a fair and open competitive process in accord with the city's administrative code. there are many ways to do procurement process but we chose one that we thought was appropriate for the type

of contract and if you look at the submissionses they are actually quite close but the procurement rules govern what recommendation we bring to you for your approval. the selection of the winning bidder does not all cast any aspersions on any bit biders. it's just the outcome of the process we do our diligence to ensure they are responsible bidders and on that bases are offering the award today. there was an mou assigned between ciu and andrew that encourage the transition that have concerned us and something we'll behind the -- be watching closely. if there is anything you would like to add about the process or substance, i will turn to them. >> good afternoon, chairman

nolan, directors. >> my name is pattel, manager of contracts and procurement at mta. the city has on city contracts done rfp's or ifp. either one is acceptable because it was a faster turn around and we had a time constraint on the contract. knowing that we followed all the loop on the process. it is not exclusively a low bid award. it does have minimum qualification requirements within the document that all bidders must adhere to. it is a qualification base as well as a low price. the city has issued these before of office of contracts and procurement has done so in the past successfully. so other than that, i can

answer any questions. >> thank you. >> thank you, mr. pattel. i would imagine as you went through the procurement process there is a supplier validation process that must include financial stability review of the people who are going to be with the company bidding on the contract. so, the idea that because the wages that they are going to be paying are going to be staying the same, the financial stability review would have uncovered whether that was going to be detrimental to the bidding company. >> that's correct. we required 5 years of financial statements with the first three 3 years being the minimum required amount. so $5 million in revenue. we did check their financials, they were in good standing and net minimum requirements. after the bid did come in we did reference checks successfully. we also communicated back with andrew

international about the relationship that andrew had with u.s. security, what we were told at that time is that u.s. security is operated separately as a non-union company and andrew is operated as a union company. both of those companies are essentially owned by goldman sachs, i believe. they are a large corporation and they have done this kind of work before. we also have performance bond requirements as stated earlier. so if there is a failure on performance and paying wages, there is $800,000 for non-performance with the contract and another 800,000 for non-payment for labor and equipment. >> thank you, that was my second question. you beat me to it. thank you. >> other questions? >> director borden? >> you can't really change the orders. there is no more money after

the contract to get through. >> for the city to get more on the contract? >> no. the amount we are allocating for today, if the cost were higher, we wouldn't be on the hook for that, despite >> we would not pay higher than the bid amount. there are always changes and proifgsz provision to the contract but this is the price we would be paying. >> thank you. >> it seems to me that one of the things that cypress has very eloquently raised and thank you for your input is the concern for the workers and that the vug going to be pulled out from under them and they won't be able to live to this agreement. but the director of aciu is here today. does aciu support this contract? >> as director reiskin pointed out

that sciu that if they award to andrew international. they will be transferring all of the existing employees over. >> i understand that, my question goes a little bit deeper of a level. i think the allegations being raised by cypress is andrew, don't take andrew bid at phase value and this may come back. the question isn't whether it's signed up. it's whether aciu has taken a position on this contract? >> i think that would be a question for aciu. >> mr. mali, you need to approach microphone. >> the official opinion would be we are neutral.

we don't care who gets the contract as long as they play by the rules of the cba. >> very good, thank you. then my second question is in direct response to the cypress concerns. do you think andrew can practically and financially meet the terms of this contract without any problem or any sort of reversal on the workers? >> they have met all the requirements that we have worked in the document. we have checked all of their references, we know they are history. yes. we feel that they can perform the work. i would like to have chris address the director of security with his experience with andrew. >> thank you. thanks, my name is chris, the director of security and enforcement. as mentioned in the bidding process we

developed a scope of work that had very clearly defined minimum requirements particularly with respect to the experience of the winner of the contract. and we are satisfied that andrew has signature -- significant enough experience in managing large security operations to effectively manage the business of sf mta. >> okay. i didn't actually hear cypress putting down the other company as unqualified. i think they maybe redding the in fact they didn't get extra credit for service. thank you. but that's the way the bid was structured. one other thing to respond for someone who has been a good vepd -- vendor for years and deserves an answer to questions raise, are you the presenter, maybe it's possible to meet the terms on the contract.

when you said the numbers are similar so you are quite comfortable. the president of cypress was here and said in his opinion he doesn't think andrew can fulfill this contract with the numbers submitted. i'm sure that's a question that you have given some thought to and i want to make sure we have the answers to that question? >> we don't have reason to believe that they will be unable to do so nor would we recommend to the board for approval if we had doubts about their ability to do so. >> thank you very much. >> thank you, mr. chairman. >> what's your pleasure? >> motion to approve. >> second. >> anymore discussion? >> i just want to say one thing. i don't know enough about this situation other than what i have read. i do think that we always talk about local companies and supporting local companies and putting things on ballot with local companies and

makes it difficult to compete with outside of san francisco that has lower chains and lower cost in other areas. thigh -- i think we need to think about if we want to have local businesses and better employee practices to figure out how to put that in the contracting process. >> do we have a motion on this? motion and second. all in favor say, "aye". >> aye. >> opposed? no. thank you very much. >> motion to conduct a closed session. >> second. all in favor say, all in favor >> we are back from closed section. took no action.

it's ais it appropriate to disclose? >> do not disclose. >> all in favor say, "aye". >> aye. >> none opposed. we are adjourned. [ meeting is adjourned ] >> >>.

>> it is august 19 entertainment commission meeting to order. please turn off or put your phones on vibrate and all recording devises during our meeting and we want like to send sf gov tv for sending us out over the airwaves. can we have a roll call please. >> commissioner perez. >> here. >> commissioner akers intl here. >> commissioner joseph. >> here. >> commissioner lee. >> heir. >> commissioner frost. >> here. >> vice president hide. >> present. >> president tan bryant tan is out of