welcome to the san francisco board of supervisors budget and finance, my name is mark farrell and i will be joined by avalos and mar, i want to thank the committee, and today is september 17th. >> do we have any announcements. >> please silence all cell phones and, completed documents to be part of the file should be submitted to the clerk and the items today will be appear on the september 23rd, board of supervisors agenda, unless others stated. >> could you call, item number one?

>>resolution authorizing the execution, sale, and delivery of a multifamily housing revenue note in an aggregate principal amount not to exceed $25,000,000 for the purpose of providing financing for the construction of a 67-unit affordable rental housing development known as bill sorro community; approving the form of and authorizing the execution of a funding loan agreement and a borrower loan agreement; providing the terms and conditions of the note and authorizing the execution and delivery thereof; approving the form of and authorizing the execution of a regulatory agreement and declaration of restrictive covenants; authorizing the collection of certain fees; approving modifications, changes, and additions to the documents; granting general authority to city officials to take actions necessary to implement this resolution; and ratifying and approving any action heretofore taken in connection with the note and the project, as defined herein. >> thank you very much, do we have the mayor of office of housing here? okay, please come on up >> good morning, chair farrell and supervisor avalos, i am the moh, project manager, and thank you for giving me the chance to submit this resolution for your review and approval. resolution before you is a follow up from the march 2014 enducement resolution, which is this committee unanimously approved, that authorized the mayor's office, to apply to the debt limit committee, and that was approved by 2014, and the current resolution, for you is

now approve the issuance of up to 25 million in the bonds for the development and the bills of the community, which is located at the corner of 6 and howard streets. and it will facilitate the development and will help the developer obtain the financing at 3.1 percent, the project will involve the new construction, of 9 story, 67 unit multifamily, 8 studios, 24, one bedroom and 25 two bedroom and ten, three bedroom units. >> the community will include, the ground floor courtyard, social services space and ground floor commercial space, and 52 will be affordable for houses making no more than 52 percent of the median income and 15 will be for disabled adults under the hud section program that we target to households making no more than 25 percent of median, and one

unit will be an on sight property manager, these are conduit financing that do not require the city to pledge, the city funds as repayment of the bonds, whereas the only recourse is the project revenue itself and credit enhancement, and the mayor's office is pleased to support this 100 percent, affordable housing development which also received considerable community support. we anticipate the closing of this transaction take place on november third, and the project is slated to begin the conjunction after in 2014, and we respectfully ask for your approval of this issuance and we look forward to any questions that you may have and this concludes my presentation on the issuance. and thank you. >> thank you, supervisor mar? >> yeah, i just wanted to thank him for the presentation, and also, to say that bill soro was an amazing person, and his family members as well. and it will be great to go into the building and to remember

his legacy, not only, in the fight against displacement, and for the tenants of the international hotel, but his life long work for labor rights and to unite, the different communities to fight for a better future for everyone, but thank you so much. >> okay. colleagues, if you have no aoe questions, we will open it up to public comment, anyone wishing to comment on one? >> seeing none, public comment is closed. could i have a motion to move this forward. >> so moved. >> we can take that without objection. >> could you call item two? >>resolution approving and authorizing the conveyance of real property located at 1009 howard street from the office of community investment and infrastructure to the mayor's office of housing and community development. >> okay, welcome back. >> good morning, chair farrell and avalos and mar, and again, i am the moe, project manager and thank you for giving me a chance to present this property convey ens and ground lease for

your approval today, this resolution, approves and authorizes the final transfer and acceptance of 1009 howard street, located at the corner of 6 and hoe wart street, from the office of community investment and infrastructure to the mayor's office of housing and community development pursuant to the redevelopment law, passed by brown in 2012. and the property convey ens is memorialized in the quitclaim deed, it was unanimously approved by the ocii commission, 31-304 four, on may sixth, and approved by the oversight poor per resolution, 5-2104, on june nine, 2014, the copies of which are available in your packet. >> this resolution will also authority the mayor's office of housing and community development as successful housing agency to the redevelopment agency to enter into a long term ground lease

with mercy housing california, for the development and operation of 69 units, of affordable housing at 1009 howard street, the term of this lease is 70 years and contemplates an option to extend years of 99 years. and the proposed project will involve the construction of a 9 story 67 unit, multifamily rental comprised of studios one and two and three bedroom units with ground floor courtyard and commercial space, as previously mentioned 52 of these units will be affordable to the households making them more than 50 percent of the income and 14 of the units for disabled adults will be set and targeted to households making more than 20 percent of their median income, and as you might be aware, this project truly represents many years of wait to see this under utilized parcel to be a true asset, the

former redevelopment agency acquired this site during imminent domain and is you had an rvp mercy housing, has made the strides to put together the financing for this project and today they have garn nered the hud funds and the state, oriented development award, and a federal home loan bank, affordable housing funding award and a robust tax credit equity proposal. and the developers currently in possession of its initial premises and is posed to begin the construction in early of november this this year and the project will take 24 months to complete and this concludes the presentation for the resolution, for bill, scommunity and the members are here should you have any questions, thank you. >> thanks very much. >> colleagues, any questions? comments. >> okay, we will open this up

to public comment. anybody wish to comment on item two? >> seeing none, public comment is closed. colleagues, could i have a motion to move this forward. >> so moved. >> motion by supervisor mar, we will take that without objection, will you call number three? >>resolution authorizing the office of contract administration to enter into nine contracts for the technology marketplace (successor to the technology store) purchases between the city and county and en pointe technologies, inc., world wide technology, inc., computerland of silicon valley, xtech jv, technology integration group, central computers, stellar services, robert half technology, and intervision systems technologies, inc., with initial not to exceed amounts of $12,000,000 each, for the term ending september 30, 2017, to commence following board approval, with two options to extend the contracts for up to one year each at the sole and absolute discretion of the cit >>student: okay thank you very much. come on up, jackie. >> good afternoon, supervisors, jackie fong, and the city purchaser. and i would like to briefly talk to you about this item before you. and in october of 2013, the office of contract administration issued a request for proposal.

seeking technology partners to assist the city in maintaining developing, and improving its information systems and processes. we are now seeking approval to award multiple as-needed contracts, as a recall of this rfp process. since the first computer store contract was awarded in the 90s, we have endeavored to improve the business model to meet changes in the city's requirement and the technology, industry. and the multiple as-needed contracts ha resulted from this rfp. >> could we get a limit and could we get the sfgtv to put on the... >> there we go. >> multiple as-needed contracts that resulted from this rfp.

are categorized in three pairs, replacing the contracts formally known as the san francisco technology store. and i would like to briefly summarize a technology store. the first thing is that there were four contract categories, or four contractors in two contract categories. and these were all contracts over ten million dollars. the contractors in those categories were computer land, silicon valley, counter stone, joint venture and en point and xtech, and i would like to thank the vendors for the services that they provided the city over the term of the contract. one of the things that was new in the technology store, was that we added a third category of microlbe set aside programs.

and this is something that we chose in the next store to expand on. it was an experiment to some extent, but i think that overwhelmingly, the feedback that we got from the lbe community, is that they wanted more opportunities in the store. and you will see how we have addressed that in the next rendition and in the contracts that you will see today. the name change reflects some of those changes we needed a wider array, and we desired to expand the number of prequalified vendors available to service the city. our goals. the first one, was to increase

gender diversity and participation for lbes. the second goal, broader vendor out reach, and competition. and one of the other goals was to increase levels of service and expertise. and finally, to provide the best value and technology to service the city's needs. and the rfp was issued on september 27th, 2013. proposers submitted written proposals demonstrating their qualifications. and one of the things to note was that there were numerous opportunities, at different levels, and proposers could submit multiple proposals, to the different contracting tiers. but it was made clear that we would only award one contract and they would be awarded the

highest level of contract that they were ultimately recommended for. tier, one, proposers, which is the subject of today's resolutions, who met the minimum qualifications proceeded to an interview phase, and were scored by an independent panel. the technology market place, here is the overview, the tier one, with contracts over $10,000 and they includes specialists and generalists, and they could submit a proposal as a primary prime or

as a joint venture and also they could submit and they can be submitted as a subcontracting partner by one of prime vendors, and in tier two, they are valued at $2.5 million, and there were, and they could submit proposals as prime contractors and the lbe discounts would apply because of the dollar value of the contracts. and finally in tier three this was an expansion of our micro set aside program. >> supervisor mar? >> could i just, could you go back to that previous slide? >> yes. >> i totally support the microlbes, in the bottom category, and the lbe

opportunitis for tier two and the bid discount applies. why was there no effort to encourage local business enterprises in that top tier? because that our goals for the city are not just for the smaller contracts, for a fair chance for women, and people of color, and local business enterprises, but for all category? s so i am just wondering why there is no effort in the tier one to insure that there is that level of diversety of the vendors. >> we do encourage lbes, to apply and in the top tier and in fact, probably the last time around, xtattoo is maybe one of the biggest success stories that we have had in terms of joint venture and it was two, former bles that now have graduated from the program. and certainly, from a dollar

standpoint, where one of the most successful vendors the last time around they are participating this time around. >> so it sounds like there is some effort with the recruitment and out reach to lbes, but why is not there some other efforts like there are for the bottom tier and the second tier to encourage that level of diversity at that top level? >> we do encourage it. and we do hold prebid conferences so that the different vendors could basically meet and determine whether they would like to partner or not. >> so it sounds like it is, you encourage and you do different or other efforts but i see for the bottom tier, there is a specific set aside, it looks like, and for the middle tier there is a bid preference, and why isn't there more done at that top level like there is for those two tiers? >> because, these are in

accordance with 14 b, rules. and so, we apply the preferences as prescribed in the admin code. and we set up a set aside program as prescribed presently in the admin code. and we actually go above and beyond that in terms of trying to at least provide opportunities for lbes to partner. >> supervisor avalos? >> just a follow up question on that. when you say that we comply with 14 b rules, it is kind of like just saying just because, but what is the rationale on 14 b, that says that we will not have an lbe component at or over 10 million dollars. >> why was 14 b structured that way. it does not make a lot of sense?

>> i will because i was not in the present position when that was determined, and the dollar amounts and i understand that the board will be looking at that again. shortly, that the dollar thresholds will change. and i will decline to answer and i would defer really to the contract monitoring division, who has worked more closely in terms of the legislation itself. >> it seems like a real flaw, especially if we are looking at local business enterprises, you know, when we and they have a contract with the city. and that is fun, and that is money that gets recycled back into the local economy. and you know, we are missing out on big opportunities like that, and i am wondering if anyone in the mayor's office or the controller could explain

anything about the policy rationale and to me it does not make a lot of sense. >> you know, the things that we have in this contract that are not reflected here, is that we do require that all of the vendors have a local presence, so in that way, funds are also funneled back into the community, >> it is not exactly the same. >> pardon me? >> it is not exactly the same. it is not exactly the same. >> no it is not exactly the same absolutely not. okay. next slide please? >> okay.

and so before you today, are contracts that do estimate to exceed the 10 million dollar threshold and we are proposing $12 million dollar contracts for central computer, and computer land, en point, tig, worldwide technology, and xtech, intervision,... let me see. and robert half and stellar services. the estimated lbe subcontracting opportunities under this is $3.7 million. and again, that is because there are product and service components to this tier. and the $3.7 million, is based

on subcontracting opportunities for services. and even though these contracts do not require board approval we would like to familiarize you with the second tier. and this tier again was 2.5 million dollar contracts, and the contracts are being awarded to ameritech which is an lbe bridge micro, and another lbe dynamic systems, sns, sf jv which is a joint venture with an lbe, there are tier, 2 b specialists and academy x, cmpros, and soft net solutions and two of the three are lbes.

and the total lbe contract amount awarded in this tier was $12.5 million. and finally in tier three, there are again, multiple... >> i am sorry to stop you for a second. >> you said 12.5? >> yes. >> that is aggregate. >> aggregate. >> thank you. >> and then in tier three, there is microlbes, there is 14 contracts total, and the amount where the microlbes will be prime is 4.3 million dollars

participate, as primes. also, there were no dollar limits for large projects within the store before and we have placed the dollar almost of 2.5 million dollars through the technology market place.

so, larger projects will go out for bid and in that way, the market place will have the ability basically to bid on all of those larger projects. that concludes... and i am sorry, i would like to address one more thing, also i did receive a protest in may, in response to our notice of intent to award. we have given careful consideration to the concerns raised. and we reviewed the process, and however, we are still recommending that the committee and the full board affirm the selection of the panel's review and approve the contracts that are before you today. we are available if there are any questions. >> okay, supervisor avalos in >> just a follow up question, does the 14 b, program, does it

require that they are not b and lbe bonus for proposals over 10 million dollars. >> yes that is correct. >> it is a requirement. it is not an option. >> i believe that it is a requirement. >> okay. >> thank you. >> >> okay. colleagues, any other questions? at this time, why don't we move to our budget analyst report, mr. rose if you would not mind? >> yes, mr. chairman and, members of the committee on page 4 of our report, it is shown in table two, it actually that so page 3. and each of the nine contracts will be for a not-to-exceed amount of 12 million or 108,690 for the contracts for a term of approximately three years. and as you know, all moneys to purchase the technology

products and services are subject to the appropriation approval to the board of supervisor and we recommend that you approve this legislation. >> okay, thank you, mr. rose. >> just to be clear, mr. rose, did you dig into the selection process, within there, or was this just, or was your scope of your work outside of the process. >> we did not look at this protest issue whatsoever. and we were not there and we are assuming that it was a fair and proper solicitation, process, and we do know, that it was a competitive process. and we rely on the department to report back to us that it was a fair competitive process >> okay, thank you mr. rose, any other questions? >> at this time we will open it up to public comment, if anybody wish to comment on item three, step forward. good morning, chair and

supervisors my name is chester young and i represent central computers and we are one of the intended awardees of the contract and i want to make a specific point and a general point, and one was in a response concerned raised by supervisors mar and avalos, regarding lbe and encouraging lbe participation in the tier one contracts and there is a specific goal that all tier goal one contractors commit to in terms of percentage of service work that must be fulfilled in partnership or through the lbe subcontractors and in that sense, it is very much parallel to the goals that were set aside in the previous contracts. and over all, my experience before and hopefully in the future is that it really does create a sort of community between the larger firms within the city as well as the smaller

ones because there is also regular meetings and is there a lot of partnership in terms of trying to mentor smaller firms and to open up the opportunities that we are able to access for their benefit. and it is not easy. but that is certainly there. and so there is a hard numerical goal to which we need to adhere and i think that it is for the base requirement is around 20 percent and i think that my firm, we pledged 25 percent of the service work and that is the most lucrative and the type of business that most lbes are to perform and compete against the larger firms 6789 do i want to voice my support to the contract in the sense that my company is a family owned and operated store, and we have been in san francisco on howard between 4th and 5th for 20 years now, back when that section and that block was more like 6th street and this

is a tremendous opportunity for our firm to be able to okay ses the type of sales that really large multinational corporations are usually going to dominate. and so i would like to voice my support for approval of this contract. >> thank you, very much. >> supervisor mar? >> mr. young, and so that is where the academy of sciences you are like next to where the academy of sciences. >> we were just down the block and well before they moved in. >> so you mentioned that you are a family-run, i have been in there before on howard but you are not an lbe. >> we are too big to be an lbe, fortunately we are too successful to be an lbe, we are actually otherwise certificated women-owned minority owned but in terms of our gross sales we are too big to qualify for lbe status. >> and miss fong mentioned of

the non-lbes you have contacts in san francisco and could you explain what those kinds of contacts are, like a presence in san francisco? >> the contract requires that all bidders have an actual physical presence in the city in terms of an office as well as show room capability and assembly and etc.. and so, the natural consequence of that is that it benefits employment. for the city in terms of the actual staff for those offices is generally going to be living in staoet and in our store, every single one of our 20-plus employees is a resident of the city and the sales tax implications. >> thank you. >> okay, thanks very much. >> anybody else from the public wish to comment on item three?