projects having a high year threshold amount will allow us to perform more of that work, also having a higher tlermd will have the benefits we can allocate more micro lb contracts right now, there is a requirement of 50% contract, set aside for micro lbe's, having a higher threshold will give us an opportunity to set more of those contracts because we have a higher threshold. apologize i didn't cover this point, where here to answer any questions you may have. >> supervisor breed? >> okay are there any other department presentations? okay. i just have one concern colleagues i wanted to talk through this concern in terms of the recommendation made by the budget and legislative analyst. the concern is making changed to the proposed resolution to the

emergency determination that it be submitted to the board of supervisors within 60 days with the department head's emergency declaration. basically hi a concern -- or. >> i'm just realizing she gave the budget analyst. >> report? >> who has several recommendations to give us an opportunity to let us know what they are. >> okay that is fine. >> thank you. >> good morning supervisor yee supervisor christensen and supervisor breed. debra new man from the budget and legislative analyst office. as the departments are concurring with the amendments, i will briefly touch on each one and

specifically highlight the emergency amendments that we're suggesting. to start with, i would say that you probably are all familiar but i just want to set the framework to tell you, in accordance with charter 69.118, construction contracts are not subject to supervisor board approval they're the exception. when we started looking at all of these changes to chapter six, we realized there were likely to be significant fiscal impacts however they're very difficult to quantify. the one real savings we could identify, is the proposed changes departments would not longer be required to notice contracts and proposals, in the newspapers they would now be able to do those on websites, it's certainly the way most contractors find out about the

work we don't have a problem in general with that we have a specific recommendation regarding that. with that change to no longer advertise in the newspapers, we estimate to be $165,000 in savings to the city. going over each of our recommendations for the amendments the first bullet point is under the proposed changes the departments would be able to have under $10,000 threshold. no competitive solicitation requirements, that is with chapter 21 of the administrative code with concur concurrences concurrences -- we're asking that chapter one went with existing procedures read, to add the language however, departments, are encouraged for

bids and quotes from lbe's and response to the lowest bidder. the next recommendation for amendment is regarding what i just described to allow departments to only advertise on the web the current language is to read to the website of the cities, office of contract administration or the department concern. we're recommending that it be "and" so there be a wider outreach on the web. the third bullet is regarding the threshold amount. there will be more discussion about the threshold amount, but basically, if it's under the threshold informal bidding is required or is allowed. and the code currently says it shawl be

posted with three day's notice that language was going to changed to "may" we're recommendationing it stay as shall for the bidding, when it's above threshold and informal bidding is requires ten days is required. the next two bullet points have to do with the emergency procedures, the departments were originally recommending, current contracts must come to the board for approval over $250,000 the department is recommending that go up to the threshold amount but they did pull back on that recommendation so it will continue to be at the $250,000 threshold. the second area about emergency reports -- this is supervisor breed to your question i can elaborate on it

more. they do have a number of recommendations regarding emergency procedures. it is on page ten of our report. and the changes will add a provision, when department heads declared the emergency, the department head must provide a notice to the board of supervisors mayor controller, and board or commission having the jurisdiction. that is a new provision -- >> would that be inserted into the resolution. >> it's currently as proposed by the departments under 6.6. that language is what the departments were proposing. >> i don't -- that's what i think i'm confused. in the language i don't see that, i see the --

>> it was not our additional recommendation it was the language being proposed by the city departments. >> can you specify the section and the resolution? >> yes, section 6.60 and -- let me find it -- on the top of page 79 where it says, other determinations under subsection d, described below the department is responsible declared emergency with immediate notice to the board of supervisors, the mayor, controller and the commissioner having jurisdiction over the area effected by the emergency if any. then it goes on. the

department is responsible for the execute of the repair. that is the new language they're proposing. >> great. >> in addition to that our office is recommendationing, and indicating the departments agree to add that the proposed emergency resolution, that the board needs to approve must be submitted to the board of supervisors within 60 days -- >> now why is it 60 days? >> we basically, based on some of the recent issues, that have surrounded emergency declaration, we were concerned by the time the departments were submitting these declarations six months after the declaration, not only had the work primarily commenced it was almost over. there was no

ability for the board of supervisors to reject or do anything different than approve because of how far the work had already progressed. >> so what is the change from 60 to 30 days do? >> we started with a much lower time frame for them to submit. those departments -- dpw does not have a commission, they only have to go to the mayor, but the other city departments that do have commissions i probably should let them speak for themselves but they felt those commissions that only meet once a month, if they have to bring their emergency resolutions to their commissions, they wouldn't have sufficient time to then bring it to the board and they were also concerned that they may not know the extent and the actual total cost of the emergency until sometimes a little further along. so it was

a bit of a compromise to come up with the 60 days but we felt that would, at least allow some time frame. the current ordinance does not have any time frame for submitting those emergency resolutions to the board. >> but also i notice there is no penalties we just dealt with the situation an emergency situation so where is the incentive to push departments to notify and address these issues shg appropriately? number one. number two in some cases, they may not necessarily be an emergency so with this change i think we're making changes to the checks and balances. so one of the things that i wanted to propose in section 6.60 under d is to include the approval and writing from the mayor or the mayor's designee and the president of the board or commission concern as appropriate to the derpt, and

the president of the board of supervisors i want to include that in the language in terms of approvals, because that is not included. >> deputy attorney john gibner. i don't think there would be a legal problem with requirement approvals, notice to the board is appropriate but requiring that the board president approve is probably not something we can do by ordinance. because, ultimately, the approval authority is for the full board and can be delegated to the board president. >> is there anything we can do other than noticification, obviously we're talking about an emergency i will use the fire station of treasure island, example emergency declared six months later, you know, that was plenty of time, to come back to the board and to you know ask

and go through an aappropriate process of approval. and again there is no penalties there is no anything we have in order to make sure that emergencies are being used for just that; emergencies. so i guess i'm looking for the possibility of another kind of recommendation that could be helpful with this process, that could be inserted into this ordinance. >> through the chair supervisor breed our office wrestled with this quite a bit, i had numerous conversations with city departments, specifically regarding that project on treasure island, i had discussions with the city attorney about how we could compel require city departments to comply with the definition of what an emergency is. the

definition it seems clear the problem is what dependents consider to be an emergency and what our office considered to be an emergency. there were disagreements. we couldn't come up with anything that could compel them to do this. >> so would noiification after there is notification is there a process the board can figure out yes, this is an emergency or no we don't want them to proceed. where is the opportunity to do that? >> potentially in addition to notifying the president of the board maybe it should also be the clerk of the board who would then intern notify all members of the board, that might help -- >> can we add in that section specifically 6.60 line d

potentially the department head like if the estimated cost of the emergency work is less than or equal to the threshold amount the department head may proceed with the work after notifying the board of supervisors rather than additional approvals after notifying the board of supervisors. can we do that? >> okay. >> i realize -- i understand the departments are looking for a way to do work in order to allow for dealing with emergencies which we frequently have i don't want bureaucracy get in the way of progress, but ultimately i want to be sure we are responsible, there is still a process, we don't want situations being abused either in emergencies, and that being

used as a way to get things done quickly i wanted to make sure there say checks and balances i'm happy to approve in order to make the current improvements to the ordinance in addition to including after notifying the board of supervisors and striking the line "without additional approvals". >> supervisor breed on the amended version of the ordinance, what line -- if you are looking at the amended version? >> page 80, line 14. >> hi, deputy city attorney, adera, taylor. that line is for emergency work that is less than

205,000, that is for work that does not require super visors board of approval. >> i realize that. it's just a notification. >> right that notification now occurs immediately at the declaration of emergency. >> so should we include the notification because the notification is only to the president of the board maybe we should include it in that section to specifically, the clerk or to the entire board rather than just the president. >> okay absolutely i think that notification would be appropriate in 6.60 b, perhaps. >> whyokay that is fine. >> it will read -- may declare an emergency with immediate notice to the board of supervisors so the clerk of the board. >> what is appropriate is fine.

so at this point, i would like to make a motion -- >> we will wait until after public comment. >> okay. all right. >> i would say our last two recommendations we're just clarifying to establishing the need for two sections, 6.62 and 6.64, regarding job order contracts, and as needed construction contracts. moving to the policy -- >> would you like to say something to the city attorney? >> sorry to interrupt, deputy attorney. what you are suggestion for the work over $250,000, you want to prohibit the department from continuing the work over 250 until the notice has been provided? >> yes. >> okay. got it. i don't think

we can write that on the fly, but you can make the amendment we can prepare it and provide it to the clerk after the meeting. >> what i'm asking for is just notification. not like to find out way down the line when we're asked to approve. >> okay. >> mr. nuru? >> so i think, if i understand it it's something over 250, the board should be notified. just for my clarification since i declare a number of emergencies, if i have something happen friday night and i need an emergency what is the protocol? >> i think -- i don't want to speak for you supervisor but what the ordinance would say if you have an emergency on friday night and you send notice to the clerk before you spend a quarter million dollars on the

work, if you have to spend $300,000 on the weekend you would send a notice to the clerk on friday or saturday saying i declared an emergency, and proceeding with work section 6.60 this is going forward but provide notice to the board this is happening. >> i wanted to know we have street collapses -- >> could you explain how this would be problematic, or prohibit you from effectively do what you need to do what you need to deliver for emergency purposes? >> a situation like i'm describing, friday night, a street intersection, we have a collapse, me or the other agencies declare an emergency, so we will, and we notify you, and you don't get it or something happens? >> why wouldn't we get it? >> you don't come back to work until monday.

>> it's just a notification it's making us aware of it, we can't approve it we can't do anything to stop the project or the process we just want to be notified. my biggest concern i think the board should be notified eventually, it will come to us to approve of it financially, i don't like surprises, so we know from the beginning what is going on so we can do what is necessary to support it or ask questions or anything else. >> i don't think the proposed amendmentses is going to change your work, we may not see it until monday but give notification. >> that is fine if it's just notification we will find a way to notify. >> yes. >> supervisor christensen. >> director nuru? how many

emergencies over $200,000 do you think public works addresses over a year. >> not too many. i think last year we had 5-10. >> so if we made the notification effective the next business day, would that reduce -- i realize when you havage emergency, you are scrambling to try to address it if the notification came out on the following business day, would that satisfactory? >> that would be great. >> i'm thinking there may not be administrative staff on the department side there is no one on our side to forward it if the notify occurs on the next business day, would that satisfy. >> i'm okay, right now, the way that it's written there is notification but there is no penalties there is no requirement necessarily like if you declare an emergency, you can still begin the work but the other thing is, you get to the notification when you get to the

notification but in my mind the notification needs to be an important part of the puzzle, so you are simultaneously doing what is necessary, but making sure the appropriate parties are notified i'm making sure there is a notification inserted into this process so when the emergency is declared there is an immediate notification to of course the mayor is going to get notification so the board should get notification. and i'm just adding that to the process. it's not going to stop your ability doing the work, it's just saying you have to notify us basically, there issage emergency declared and you are you going to spending a lot of amount of money. >> currently the administrative code has notification to the board within seven days. >> we're changing that. >> if you want it the next business day -- >> which section are you looking

at? are you looking at section d.? >> yeah. >> i'm not proposing to change that, that is a little bit different. we're looking at section b now. >> so supervisor christensen made a suggestion i would be supporting that. >> okay. >> make it the next business day, which is reasonable to me. >> my goal is not to make it more complicated or problematic for you to do your job, mr. nuru, just to make sure there is notification given to the department. i think it's important we're notified rather than when we're asked to approve the money 6-9 months later and we had no idea what was going on, i think a notification is appropriate. >> thank you. so let's move on.

>> okay now moving to the areas of policy consideration. the first area that was outlined by mr. lopez was the sole source contracting. currently, under chapter six, there are no provisions for sole source contracting other than for the emergency provisions. that is allowed under the emergency provisions when there is an emergency, they can select a contractor and go forward. otherwise, currently the department must seek approval from supervisor to wave bidding p they want sole source's specific contract. under the proposed amendment the department would allow sole source department contracts

under the specified provisions outlined here which have to do with proprietary reasons there is only one source available. the follow on contract work, when they award to another contractor would result on substantial cost unacceptable delays, or warrant or statute of government regulation or expedited process to make sure federal or state funding is available. we say this is a policy decision currently under chapter 21, of the code which deals with commodities and services sole source provisions are permitted. and under some federal guidelines, sole sourcing is permits, this would

be another con straks contract in the city. the second area we consider for policy decision to the board is the threshold amount. the threshold amount written in the code is currently 400,000, it does have a cost of living adjustments every five years, as a result. the current threshold is 440,000. they're proposing this go up to 600,000. the threshold amount is used to determine a number of things. one who does the work? currently under the threshold amount either city employees can do the work or the work can be contracted out. above the threshold amount, the work needs to be contracted out. the second area is whether formal or informal bidding requirements are imposed under the threshold, informal bidding, and

above the threshold, formal bidding and the third ayeah, who can accord the contract under the threshold amount, the department head can award the contract above the threshold amount the mayor if it's dpw or the commission is required approval for the other city departments, those are the main areas having to do with the threshold amount, however, there are lots of prosituations in chapter six, that give reference to threshold amount with task force or as needed contracts all of those would go up similarly. on page 22 of our report there is a table where based on data provided by the departments, in 2014, we looked at for public works, puc and the airport contracts if the $440,000 threshold was in effect for

2014, 31 contract would have been under that threshold amount, the dollar value is small, it's only 1.63%, that is because when you get above the threshold, you get a couple of projects you get one project like the rebuild of san francisco general, that is a billion dollars, and it skews all of the numbers but if you look up actually in terms of the number of contracts in comparison if in 2014 if the threshold had been 600,000 40 projects, rather than 31 projects would have been under the threshold. so instead of 22% of the contracts, 29% would be under the threshold. as pointed out before not in chapter six or in chapt ir 14 b, with the city's administrative code of the lbe there is set aside 60%

of contracts under the threshold amount are set aside for micro lbe's therefore increasing the threshold amount would result in potentially more projects be able to be done by city employees more opportunities for micro lbe set aside participation on city contract contract contract contract -- construction contracts and more informal bids, on the other side i would say the threshold amounts currently allow for a cost of living adjustment so they have been able to be increased over time, and would continue to be whether they're the fur hundred 40,000 or the 600,000. it would allow for more informal bids, which would be more efficient, but on the same time may not allow as much exposure because they don't have the amount of

time they are advertised for bidding. currently, chapter 21, with commodities and services has the 440,000, with the procurment of general and other services the other issue, when we asked why 600,000, why not 500,000 or 700,000, there really was no why this specified level so i throw that out. it's not a reason to approve or not approve it. it's just that there was -- we got the data that we show in data on page 22 that shows you what the impact would be then the third area is changing the cost criteria not less that 65% to not less than 40% of the