each of those trauchs of goals. we are doing well. on the contractor side $24 million and we have exceeded our small business enterprise goal at the 50 percent mark -- with a great deal of those dollars going with the local workforce contracts. we are shy of the 50 percent goal more at 27 percent, but we'll walk through that as part of the presentation on why that is and why are we getting those local goals up. we have a lot of activity going on in the city. with that, i would like to ask raymond lee to walk you through this quarterly report and we also have the director of the workforce division pat miligan who is here and he is joined by other members of the staff as well. >> thank you director bohee,

chair rosales, commissioners. ray miligan contract compliance supervisor. what i would like to get accomplished today is a walk through the quarterly sbe component, the workforce components and talk about some changes with the city local 14b work performance program and the next steps that i would like to propose for ocie. before i get too far deep into the the presentation, i do want to just preface by saying that there are two significant changes to your reports that you should be an aware of. one is the fact at the request of the commission we started tracking minority female data so when you aggregate minority data and

female data that it sums up the true percentage that you are seeking. the second component is that we have broken off what we consider to be sbe credits towards the 50 percent goal versus the sbe participation that's participated by the small business in reaching our objectives. the credits, let me just explain, deals with how we treat joint ventures in associations and just very briefly as an incentive for developers and general contractors to partner with small businesses and offer opportunities for those business to participate in some unique projects. as an incentive for doing so, we offer the associations joint ventures 100

percent sbe credit as long as it participates in a very meaningful manner. meaningful to be at least 35 percent. you have seen in the presentation some slight additional details that you may not have seen in the past. i will highlight those as we go through the presentation. first a little bit on the small business program. those are projects that are with private developers through owner participation agreements. those are with disposition and

development agreements and direct contracts that ocie led as well. what we seek to do in terms of meeting that 50 percent are great faith efforts exerted by the developers and general contractors. that good faith effort means in terms of soliciting small businesses and answering questions that small businesses may have, timeframe and solicitation and there is a described advocacy and that is part of our policy. first of course we have a first consideration. these are redevelopment projects and we have carried for the principal of first consideration of awarding and considering small businesses that are impacted by a redevelopment project. secondly we look at san francisco businesses if there are no impacted

businesses that can participate and certainly outside of san francisco in terms of meeting that 50 percent goal. a bit of small definition. there is a cap that the revenues that define the small business. the ocie does define small business with caps of $2 million for professional services. $7 million to suppliers and $14 million for construction services. now, i also have placed on the screen the definition of ownership and control and also licensing. what's common with a lot of certification programs and before i talk about that, i do want to preface by saying that ocie no longer certify small businesses but for many of the certification programs is what's looked at by governmental entities and

other parties from small businesses whether a local business, minority or female business. what's looked at are the aspect of local control and operating the firm which is something that the former redevelopment agency have practiced as well. since we no longer certify businesses, what we have done is accept the certification activity of other governmental entities. again, based on the principles of ensuring ownership and control. what is different with many of the certification programs between what was previously done by the former redevelopment agency as opposed to current certification by other government entities by other revenues. if they have already judged the ownership of the firm what we

really need to look at next is the size of the business, the revenues. and as way of example, we do accept the certifications performed by the city and county of san francisco doing the monitoring division with the caveat that a small business meets our size specialist. -- thresholds. you'll -- a little bit about the performance of the quarter. what is on the slides are the contracts awarded for prior to december 31, 2014. we awarded, when i say we, what i'm really talking about ocie administered contracts. so we in the larger sense are general contractors, developers, their rewards that we administer. overall if there

are 11 contracts totaling about $54 million. here are the examples of credits and participation. the total sbe credits granted ventures associations. the participation totals to about $33 million or 62 percent. still above the 50 percent threshold that we have. in terms of a break down between professional services and construction and supplies, as you see later on in the slides, what we have looked at and there are distinct activities between professional services and construction

we have worked those components out. consistently those professional services have exceeded our goal of 50 percent. what you see here is a the total of a half million dollars and that constitutes about 52 percent. construction we typically are either below or at margin with that 50 percent. i have to be quite honest it's rather difficult for construction in the sense for the barriers to entry into the field. if you can imagine professional services what we are really talking about are the accounts of the individuals as opposed to hiring. equipment and maintaining in the construction area. we were fortunate in seeing contracts awarded by our partners that exceeded the 50 percent during this past quarter to about 69 percent. so in an

aggregate bases and these are actual participations by small businesses on an aggregate bases by 62 percent. earlier in the presentation we have broken out the components between minority businesses is what this really means is minority firms and we are tracking women minority firms and women businesses and non-meantime female businesses. so the various percentages provided. i have to say that on an aggregate basis for minority businesses and female businesses that totals about 39 percent. this is a chart that shows the ethnicity that was something requested tampa bay -- by the commission

that shows the ethnic breakdown. these are the breakdowns of the awarded contracts. i won't go through each of the percentages but it's provided for your review. 52 percent for small businesses. the largest component of ethnic make-up is the non-minority small businesses followed by asian american pacifics. after that, african americans, others and latinos. i also prepared a similar chart for a construction and supplies and that's reflected here on an aggregate bases begin -- again and we were

fortunate. an ethnic breakdown for your review. the largest component non-minority business followed by asian and african american and asians and latinos. finally in terms of looking at an aggregate basis, these are the ethnic breakdowns and also the female and woman business breakdowns for all professional and construction services. so on an aggregate bases it's 62 percent to small businesses. what's shown on the right side of the columns are the minority statuses along with the minority female and then female business. and again the aggregate in terms of minorities and female businesses is about 39 percent and these are contracts that are

performed by the specific small businesses. the comparison to prior quarters is of interest i'm sure for many folks. this chart is a representation of the total aggregation of contracts that is currently being over seeing by ocii awarded through december 31, 2014. so on an aggregate bases total sbe credits against those contracts is about $385 million against a total award bases of $1 billion. that comprises on an aggregate bases about 37.5 percent which is a 2

percent improvement over the prior quarter. and this is just a representation of the trend lines from quarter to quarter starting from the first presentation made back in june, i believe that represented the may 31 periods. september and december. what's shown of course is a consistency in terms of exceeding the 50 percent goal on a professional services bases and fortunate trend line for the construction categories. for workforce, as you know the ocii also has a workforce comprised of local workforce administered on a

contract by contract bases, similar with small businesses, first consideration is given to project area residents impacted by redevelopment project. we have currently three major project areas comprised of the hunters point shipyard point and we have entered into an agreement with the economic workforce development to administer our workforce program and executive director bohee mentioned we have representative from oewd respectfully to answer any questions. they do provide the americans -- day-to-day and training component of those to get residents prepared. on a

statistical basis, during the quarter there were about 600,000 hours recorded and this is for the quarter of all active projects. it that, 162 man hours or let me take that back, person hours, [ laughter ] comprised about 27 percent. what's also shown are the breakdown by the various major project areas bayview hunters point which is comprised of the senior housing that ocii administers. along with that, the breakdown for hunters point mission bay and transbay and others noted for your reference comprised of 72 towns and franklin and 680 folsom. on an aggregate basis, what's

shown here is a total of about 2.9 million work hours recorded for all act of projects. this is since it's inception of that particular project. regardless of what the state of that project is if it was active as of december 31st, that's what's recorded here. out of those work hours, approximately 8,000 hours were performed by local residents. this of course is a marginal change of about 3.4 percent from the prior quarter. what's also shown is the breakdown for the project areas. bayview hunters point showing a total agriculture debase of 46.8

percent. the candle stick point is 44 percent. mission bay at 25.7 percent. transbay at 24 percent and others comprised of about 25 percent. as you can see the additional resources that are lent to the specific areas does show an improvement over other areas that are a bit more challenging in the particular respect when you are talking about transbay you are talking about large towers, skyscrapers, more challenging to bring small businesses onto those particular projects. and along with that, the workforce. this chart

shows a bar trend of the work per hour performances over the project areas. as you can see the trend towards workforce is not on an up trend. it has been challenging. the demand for workers are currently extremely high. we'll talk a bit about the workforce challenges as mentioned in the last quarter, workforce remains a challenge. there is an extremely high level of construction activity that is currently taking place within the city of san francisco. it's placed a tremendous demand on local construct labor. the local construction workers is limited as well. as i understand some of the apprenticeship classes such as electric ans

are as local capacity. in terms of looking at corrective measures. of course we continue to work with the general contractors very closely. often times we look at the referrals and submissions of jobs they are requesting. oftentimes there are instances where there is not a referral that can be provided by city build. nevertheless we'll continue to work with the contractors and assist the contractors with the referrals to the greatest extent possible and kicking off the construction of alice griffith. and city building conducting outreach and classes. they are also

looking at holding spshlzed weekend courses that develop the workforce. similarly they are working with the industry and other community partners that build the pipeline. as an example, as i understand it the -- electricians with the apprenticeship. a bit about the changes to the city and county of san francisco ordinance. as some of you may have aware there have been amendments that have been approved by the board of supervisors back in december and signed by the mayor many these changes do

become effective on july 1, 2015. with the exception i believe of two aspects that's currently implemented on an immediate basis with those having to do with studies of preference programs, the remainder of the ordinance will take effect july 1st. some of the significant changes that happened to be taken into effect are an overall 40 percent contracts and these are overall basis with a 20 percent micro lbe subset to that 40 percent. but what impacts certainly ocii significantly are the proposed changed to the definition of a small business by the city and county of san francisco. the chart provided here is the industry classification followed with

the oci standards with construction contractors. we have 14 million size standards. shown from the column there are the size standards, not proposed but will take effect july 1st by the city and county of san francisco. they do certify businesses under three classification those being small be and micro be's and sba under federal standards. what will take effect on july 1st, the size standards for the small businesses for construction will go to $20 million. i believe it's at the 14 current. specialty construction contractors will go to 10, suppliers at 10, professional services will

remain at 2.5 and trucking at 3.5. how we are dealing with discrepancies in terms of the professional services at least on a current basis, the way that we handle lbe certification in our program is we look at lbe's that are certified and take the added level of scrutiny to ask for revenue figures to ensure that the lbe false -- falls below the current threshold. we are in with consistent contractors and with suppliers. but come july 1st because of these particular changes it will be a challenge to reconcile the size of a particular lbe for each and every category that is shown. what we

are proposing as a potential next step is harmonizing the next standards to the city's small lbe classification and really this not only helps the agencies in terms of efficiency and administration but will also help the small businesses and the overall contract community. first and foremost it will lessen the level of confusion and discrepancies that make take place in the marketplace and the harmonizing of the size standards will promote and affect more of a one stop shop certification in the sense that if you are certified by the city and don't of san francisco as a small business you are basic ally accepted by us, ocii without any further effort. we have asked to go back to the small

business, if we harmonize that we won't add that added burden in that small business. what we are proposing is a workshop regarding amending the sbe policy and coming back before the commission for your approval and consideration likely in june of 2015. that concludes my presentation. i'm be happy to answer any questions and also again have the director of city built miligan along with his manager >> thank you. madam secretary, do we have any speaker cards. city clerk: we have mr. ace washington. >> i might as well call this mr. ace show. there is nobody from the community. i have a couple of

challenging questions but i want to say congratulations to your new compliance officer. he took time with me last week and we talked about some challenging things on the western edition. as i speak on the western edition. as a prime example, all of your paperwork state all the other cities and all the departments and different parts of the city, but it seems like somebody in the city erases them and western edition. nobody put it on the paperwork. i'm not an advocate but i show you what i see here. the thing about it is i'm not here advocating as an advocate anymore. i'm trying to be a diplomat. i can't

be a consultant because they will call me a hus you will -- it's outstanding. we don't have that many people in this population. therefore these big giant contractors come to the city and they take all the money outside. we as individuals, african americans i'm talking about city of san francisco, we do not reap the benefits of what they call the 50 percent hiring. we can't even afford to stay in this city let alone working as a city of san francisco. they weren't talking about people like me to benefit from this hiring. if you drag this down, you have some big big challenges. but let's not go into that. let's talk about

how we can change that around. i have a solution to all of this pollution. let's look at local hiring again. i need to take out some of these people like city build, oewb, these got together because they came and filed a lawsuit. there is plenty of jobs in the western edition. we are surrounding by buildings. it's too late now, most of them are built. we still got them but there was nobody monitoring. i have to go there. i don't get paid. what they tell me, go see city build. i go there and find out city build is revamping their leadership. i found out ms. simmons and autumn of those people, they are gone. we need to bring it back to the community. you have all of these agencies. the only thing missing is the community. we'll talk about

that later. >> thank you, do you have a speaker card? that's okay. state your name for the record. >> my name is butler from butler enterprise. i work in workforce development. in 18 years i have done this work, this agency that is best program. i have worked with quite a few agencies in san francisco agencies in the east bay and also some work in los angeles. this agency has been a model as far as small business work as well as workforce. everybody is always going to complain that you are no the doing enough. the fact of the matter is it's been an outstanding job and when i'm working with other agencies i refer this program as a model to get more participation, to get