>> commissioners, can i just have you take a note -- >> here. >> testing, test your mic to

make sure it has the appropriate one. [testing] >> thank you. the small business commission meeting is called to order and the time is 2:05. the meeting is being televised live by sfgov tv. we also have joshua alexander taking some photos for us as well. and i also like to thank city hall building management media services for making this meeting possible. members of the public, there is the opportunity -- please silence your phones and if you'd like to fill out a speaker card there is a speaker card up front. not mandatory. and additionally, we have sign-in sheets as well. so, with that, mr. president,

shall we call item number 1? >> yes he, item number 1, please. ~ >> item number 1 is roll call. commissioner adams? >> here. >> commissioner dooley? >> here. >> commissioner dwight? >> here. >> commissioner ortiz-cartagena? commissioner tour-sarkissian? >> here. >> commissioner white? >> here. >> commissioner yee riley. mr. president, you have quorum. >> great. next item, please. >> next item is item number 2 which is general public comment. this allows members of the public to comment generally on matters within the commission's purview, and suggest new agenda items for the commission's future consideration. >> and do we have any members of the public who would like to make a comment on any item that is not on today's agenda? okay, seeing none, next item, please.

>> item number 3, presentation of the small business commission certificate of honor recognizing a san francisco small business (mike's locksmith) as part of the sbc "small business recognition program". today is mike's locksmith ~ >> the fun part about this job is we get to honor small businesses in the city, and today we are honoring mike's locksmith. and i've actually known mike for 20 years, and i met mike when he was an apprentice at rocky's locksmith in the castro. and somebody had -- this is before click on car. somebody jambed all my locks in my truck -- ford truck, yeah, you remember. and i didn't know who to call. i opened up the paper and i see this rocky's locksmith and mike

came down and rescued me. and ever since then he had -- right after that he had started his own business here in the city. he's from the excelsior district and that's appropriate during world sear i time. his father worked at candlestick park. excelsior resident, san francisco native, and i'm just going to read some things for -- quotes. you can hire mike, you can hire someone other than mike for your locksmith needs, but i'm sure why would you bother? mike was incredibly responsive and accommodating, not to mention prompt, friendly and fast. and another comment, mike is a genius. he saved me a ton of money by coming up with interesting solutions to my predicament. he was able to use high security cylinders from premium us without charging my entire -- without changing my entire locks, which were specially ordered. other locksmiths couldn't do it and wanted to change everything. not mike. highly recommended. and let me tell you, wherever

you are at in this city, mike is there. i see him in the excelsior, i see him in the sunset, i see him on union street, i see him in north beach, i see you in the financial district. is there any part of the city you're not? ~ yelp so, i want to read the certificate here. and the certificate reads, today, october 27, 2017, the small business commission is honored to recognize michael williams of mike's locksmith and general services for his contribution to the vitality of san francisco and the excelsior neighborhood. mike first starting out in business for rocky's locksmith in the castro district and in 1995 opened mike's locksmith and general services in the excelsior district. mike's services range from basic rekeying lock repair, security checks, analyst, auto locks, both foreign and domestic. mike williams exemplifies the

best of tr* san francisco small businesses, a business that's engaged in the community, demonstrates integrity to the community by constantly providing honest and reliable work to his clients, both business and residential. mike's lock submitctiontion and general services ha been an a-plus better business bureau rated -- has an a-plus better he business bureau rating, 5-star yelp customer rating and lives up to his motto, affordable and dependable. it is for these reasons and many more judge the small business commission is proud to recognize mike williams and general serve is he as a model san francisco business. congratulations. (applause) >> go giants. >> go giants. >> thank you very much. appreciate it. >> we have a couple other

people who want to be in on this picture. >> thank you. >> congratulations. (applause) >> any other comments? great, thanks, mike. congratulations. go giants. [laughter] >> who do you want to win? [pause] >> okay, next item, please. >> item number 4, i'd like to continue this item. the minutes to our next meeting. >> i motion to approve. >> second.

>> all in favor? >> aye. >> okay, next item, please. >> item number 5 is discussion and possible action to make recommendations to the board of supervisors on bos file no. 141001 [administrative code - requiring city contractors to submit equal pay report; creating equal pay advisory board]. this is an ordinance amending the administrative code to require certain city contractors and subcontractors with 20 or more employees to submit an equal pay report regarding compensation paid to employees; and establishing the equal pay advisory board. and today with you you have hillary rhonan, legislative aide from supervisor david campos's office. >> welcome. >> thank you so much. good afternoon, commissioners. thanks for allowing me to be here. supervisor campos's equal pay legislation is modeled after president obama's recent

federal directive that requires federal contractors to report compensation data including data on race and gender of employees to the federal office of contract compliance. supervisor campos's legislation would do something similar but for local contracts -- contractors here in san francisco. the legislation adds a new section to the administrative code's nondiscrimination provisions that requires city contractors with at least 20 employees and businesses he with a grant agreement with the city of over $50,000 to submit an annual equal pay report to the city's human rights commission. the report will include summary compensation information for employees identified by race and sex. the legislation creates an initial save in period during which the director of human rights commission is charged with convening a work group to design a data collection system that is best suited to both

identifying if wage discrimination is taking place at a business, but also that will minimize the burden on city contractors. the board of supervisors, the mayor's office and the commission on the status of women will all appoint representatives to -- at the equal pay advisory commission. after this initial phase-in period, the human rights commission, if they believe that wage discrimination has taken place based on an equal pay report, it can proactively investigate that business to determine whether or not indeed men and women are being paid equally for work. if the human rights commission does determine that an employer has violated equal pay law, the commission can recommend to the city agency that contracts with that business that that department terminator suspend the contract with that business.

the human rights commission under the legislation is directed to report annually to the board of supervisors on any of the data it collects trends in pay discrimination, the number of investigation commenced, based on equal pay reports, and the number of contractors that were penalized for violating equal pay laws. discrimination based on sex and race is already prohibited in the city's administrative code and by federal law. however, the human rights commission only enforces the provisions where an individual file a complaint. it is hard for women to determine whether or not they are victims of wage discrimination because at the 2011 survey the women policy research found about half of worker report the discussion of wage and salary information is either discouraged or outright prohibited in workplaces and/or could lead to punishment. there is a culture of secrecy around compensation in workplaces throughout this country which makes wage

discrimination particularly difficult to unveil. this legislation provides the human rights commission the data it would need to proactively investigate businesses without having to rely on individual worker complaints. tomorrow supervisor campos plans on making an additional amendment to the legislation, additional to the version that you have before you today in your packet. this amendment that he will make tomorrow will make clear and he will add language reading, the city will not disclose any information contained in the equal pay report that qualifies as a trade secret or proprietary information. that was always the intention of the legislation, that the equal pay reports would be confidential, but that wasn't explicitly written into the legislation. and after some feedback at the hearing, we wanted to make that crystal clear. furthermore, from our discussions with experts in new

mexico who put together their equal pay data collection system a the only governmental entity in the country that's currently collecting this data, what they are saying is that the most effective way to identify if wage discrimination is taking place is to collect aggregate data on compensation paid to all employees. and if this is indeed the case, then compensation data related to any one individual employee would be impossible to discern, in case there are any privacy questions or concerns in the legislation. finally, the passage of this legislation, the discussion on what data to collect and how to do so will only just begin. this legislation puts a framework in place to provide actual direction on what data to -- must be presented to the human rights commission and in what format.

before any provisions of the ordinance related to the equal pay report go into effect, the equal pay advisory board must be fully impaneled which will take three months. it will hold several public meetings, and it must ultimately return to the board of supervisors with recommendations on the best data collection methods as well as whether any trimming legislation is necessary to achieve the recommendations. ~ with passage the advisory board has six months from its inaugural meeting to bring its recommendations to the board. therefore, nothing will go into effect until the earliest nine months after passage of this ordinance if it indeed passes and it could take any longer depending on the recommendation of the advisory board. finally, one last note. and this is an update from the information that director [speaker not understood] had put in your packet. in talking to the controller's office, it appears that there are 14,000 vendors with the city and county of san

francisco. that was in fiscal year 2014. and that the controller's office estimates that only 11% of those 14,000 vendors have 20 or more employees, meaning that they would be subject to this ordinance. so, of those 14,000 vendors, we estimate that a little over 1500 of those vendors would be required to the reporting requirements in this law. and with that, i'm happy to take any questions. >> so, commissioners, i just want to make it clear because i had -- relistened to the hearing over the weekend and it sound like supervisor campos said contracts, not contractors. so, it makes a little more sense around that 11% in relationship to contractors, not contracts. >> thank you. sorry. >> any commissioner comments? >> i just want to thank your office for taking the lead on this. i think it's important work and

we'll just have to see how it rolls out and work out the bugs along the way. >> absolutely. thank you. >> all right, thank you for your presentation. [speaker not understood]. i have a question about the report and the privacy that you just mentioned. >> sure. >> so, you'll have two concern. one, the privacy of the employee -- >> right. >> -- as to his or her pay. >> yes. >> and the privacy as it applies to the business and the trade secrets. >> right. >> could you please tell us how is that going to be protected? >> um-hm. >> you just mentioned it and i'm interested in hearing you out again. >> sure. and in talking to the city attorney about this point, the language that they felt comfortable including in the ordinance itself was particularly protecting any data -- sorry, i'm just trying to get the exact language that

i read earlier -- that qualifies as a trade secret or proprietary information. so, that's the language that will be included tomorrow in the ordinance. what the city attorney mentioned is that it's unclear -- that the law is very complicated around what type of information the city can shield from the sunshine ordinance or from other laws that allow all the city information to be accessible to the public. this second point i what trying to make, and i'm not sure if this made sense, is the only other governmental entity that's doing this in the country is the state of new mexico and they've been doing it for sometime. and originally when we were putting this ordinance together we thought, well, the only way to identify if wage discrimination is taking place is if we have individual rights data on every single employee

so we can make apple to apple comparisons and try to figure that out. well, in talking to the experts that put together the new mexico laws, they disagree and they feel like the easiest way to identify wage gaps is by collecting aggregate data, data in the aggregate on all employees and ewing categories that employer are used to reporting. so that eeo1 federal categories, and that's the easiest way to both prevent employers from being able to fudge the data in terms of presenting compensation and job classification, et cetera, to the city, and it's the easiest -- it's least burdensome for employers and it's the aloiest way to identify the gap. after talking to her i realized, wow, this is really complicated, as you mentioned, commissioner dooley. collecting this data and all of the, you know, all of the issues that go into determining

a workers' compensation, years of experience, education, job title, job classification, et cetera, there are many variables. and that in order to do this right we didn't want to legislate exactly what data needs to be collected because we didn't feel that our office, or even the city attorney, or even the board of supervisors had all of that expert knowledge to say exactly how to collect data in the way that was going to be most effective and meaning the [speaker not understood] legislation and least burdensome. so, what we did is we put the equal pay advisory board together and have tasked the board to do this. and if you look at the legislation on page -- on page 9, we have required that experts in quantitative gender analysis, including statistics, a person who work in a small or medium size business that has

contracted with the city and county of san francisco, a person who is responsible for human resources, responsible for diversity, person with expertise on discrimination, against women of color, a person whos ha worked as a discrimination or employment lawyer with emphasis on gender equity, that there be a representative that have all of the requisite knowledge and expertise to be able to put a data collection system together that is going to meet these twin goals of being able to identify whether or not discrimination is taking place, but at the same time minimize burden on businesses he. and, so, that's why he we set it up in this way because we realized that it's complicated. but the experts in new mexico who have already done this and who want through a year long process to get there have told us aggregate data is the best practice in this area. so, if aggregate data is indeed the way we're going to do this -- of course it's the equal pay

advisory board that's going to come with the recommendation, and the individualized pay date aft employees will be protected. we won't know -- we won't have any individualized data so that could never be revealed to the public and we would protect workers privacy. >> so, the content of that report will be set by the people that you just mentioned with the profile? >> that's right. so, the equal pay advisory board will have a six-month, six-month long process where they will have several public meetings where they discuss and figure out what sort of data collection system they're going to figure out and there will be plenty of time, all of those meetings will be public just like your meetings where people can come and give feedback and can express any concerns, et cetera. and then at the end of that six-month period they will report their recommendation to the board and it might be that this enabling legislation isn't sufficient to put their recommendations in action. and, so, we also ask them to

come with recommendation about whether any trailing legislation is necessary. >> and eventually, these reports -- just clarification. the report would have to be submitted to an agency in the city? >> that's right, the human rights commission. >> they have to process that information. >> that's right. >> and that process would keep the information confidential? although they have to make decisions as to whether the law was violated or not, and equal pay -- and that's the balancing issue that i'm -- >> that's right. so -- [multiple voices] >> the only thing the city attorney can guarantee to me, because that's what he we would like. the sunshine laws the city is required to keep any information in these reports that would qualify as a trade secret or proprietary information. that's what they have told me. >> okay, thank you. >> sure. >> commissioner dwight.

>> has there been any assessment of the financial impact on both the contractors that will be affected by this and on the city? because you talk about experts and we're talking about consultants and, so, someone is going to be paying some money for this. >> the short answer is no. every member of the advisory board will be a volunteer. so, there's no compensation paid to the members of the advisory board committee. like yourselves, they're going to be members -- residents of the city who care about this issue and so want to volunteer their time. in terms of the cost to the human rights commission, because this legislation doesn't go into effect until the soonest nine months, we plan to work along with our co-sponsor supervisor kim who we put this legislation together with through the budget process this coming year to adequately staff the department to be able to

adequately enforce this law. >> commissioner riley. >> hi. >> hi. >> you mentioned that you have not determined what kind of data you're going to collect. so, once you decided that, would you come back and show it to us? >> sure, absolutely. after the -- we're happy to do another presentation after the equal pay advisory board comes up with their final recommendations. we can also perhaps ask the board -- the board chair him or herself to come and present that data if that makes sense. >> yes, thank you. >> sure. >> any other questions before we go to public comment? >> and this would be monitored by the human rights commission. so, the office of small business would have no involvement in this? >> not in the -- not in the

receipt and analysis of the equal pay reports, yeah, that's right. and one last thing i'll just add, the real impetus for this which i didn't mention in my comments in the beginning, data showed that even today in 2014 women on average are earning 77 cents for every dollar that a man earns, and that women of color are earning even less. african-american women, the data shows -- this is nationally -- earns 64 cents on the dollar and latino women are earning 56 cents to the dollar to men. this is a pretty serious issue and we thought it was important that san francisco does its small part with at least a portion of the $5.2 billion that we spent last year in contracts, in city contracts to vendors to ensure that at least that taxpayer dollar was compensating women adequately for their work. >> great. >> thank you.

>> okay, let's go to public comment on this. do we have any members of the public who would like to make comment on this item? seeing none, public comment is closed. commissioners, do we have any recommendations? i personally would like to continue this until we hear back from the advisory board on what their actions are going to be. i think this is good. this is something -- and i really respect the supervisor on this. i think this is something we can all get behind, but i really would like to know what the advisory board comes up with before we, as a commission, make a decision. commissioner dwight? >> i agree with you. i think also it's clear here

two important constituencies have not been conculted yet, the lbes that are going to be affected and the chamber of commerce. i think my questions he are what data are we going to collect and what is the cost to the city and what is the cost to the companies. and i think we're here to protect both the city and companies from, you know, or to at least ensure that they know what costs are confronting them. and i think we don't know that. i also would like a little bit of information about whether we have a problem here in san francisco. i think it's interesting that we have sort of national data, but it's not clear to me that this is something that is front and center for our city. so, i'd just like to know that information. >> i would, too. so, do we have a motion to continue this item until we get the data? >> i move to continue. >> i second. >> roll call? >> all right. commissioner, we have a motion

to continue the item until the data is gathered. so, president adams? >> aye. >> kathleen dooley? >> aye. >> commissioner dwight? >> aye. >> commissioner ortiz-cartagena? >> yes. >> commissioner tour-sarkissian? >> yes. >> commissioner white? >> yes. >> and commissioner irene yee riley? >> yes. >> all right, so, commissioner, we have 7 votes to continue to hear the item once the advisory board has put together its recommendation. >> great. thank you. next item. >> next item is discussion and possible action to make recommendations to the board of supervisors on bos file no. 141006 [administrative code - legacy business registry, rebate program, and establishing fees].

ordinance amending the administrative code to direct the small business he commission to establish a legacy business registry, authorize an administrative fee for the registry not to exceed $50, and, for the next five years, provide a rebate to qualified legacy businesses that purchase the real property from which they operate and to qualified landlords that purchase the real property from which legacy business operate if the purchaser extends the term of the legacy business's lease by at least ten years, in an amount equal to the transfer tax levied on the purchase. >> welcome. >> thank you, commissioners. my name is laura lane. i am a legislative aide for supervisor david campos. you're getting quite a bit of our legislative agenda this afternoon. thank you so much for having me today. and to present on our legacy business legislation. i'm sure as many of you know,

so many of our city's valuable businesses, those that have served our neighborhoods and enlivened them for decades are struggling to survive. these businesses have become cultural institutions, created the character of the neighborhoods, for generations thriving business he have played an essential role in defining our communities. [speaker not understood] sky rocketing rents for retail spaces, unprecedented development are causing san francisco small business he to suffer and many of the long established businesses have been force today shut their doors. it is with this spirit that supervisor campos believes that something needed to be done. he believes that the city has a responsibility to protect the successful businesses he that are suffering through these unnatural economic pressures that have created the economic affordability crisis in san francisco and we cannot afford to lose established independent business he. there is no one solution to this. supervisor campos is work tog te