report here. it will reflect there is nothing in the western addition that will say that anybody is monitoring or anybody give a dam n. my name is ace andime oron the case and looking forward to the agency so we can put the western addition on the map >> thank you. >> are there any other members of the public who wish to make public comment on item 5 d? >> no. [inaudible] i came before you i guess about a month or 2 weeks back concerning the relationship we had on the shipyard site with the [inaudible] project and other situations we had that we were promised [inaudible] and they never came about. mr. lee's report is excellent in

what we brought out but it doesn't range a reflection and special relationship your staff and the developers staff have with certain general contractors. it is not reflected in these reports and how certain contractors have been black listed and discriminated against because we come down here and give you testimony as to really what is taking place. it is not reflected in the reports what all the statistics and numbers. [inaudible] what is the reflection. even some of the people they describe as small business or contractors who graduated from the status of being small contractors because they overstepped the financial boundaries which makes thome a small contractor, but between the developers staff and your staff they are allowed to have

a relationship with the contractor where they give them a past overlooking the smaller contractor who is trying to [inaudible] they may be able to go past the thresh hold and become a larger contractor too so it doesn't show all this discrimination of how we are being black balled and discriminated against because we want to come down here and tell you the truth and maybe hup us be able to do a better job in getting some of the contractors but we still [inaudible] everything else in favor of other major contractors where they get the contracts all the time and the black contractors in bay view huntersion point are still suffering. because of my testimony before you when i was here before concerning the [inaudible] we are being discriminated against and black listed. we are not notified of

bids and not invited to do bids. [inaudible] the owners staff hear about it, nothing is nob mob because they are a part of the problem, not the solution. thank you. >> thank you. my name is [inaudible] and i'm here to represent minority contractor squz suppliers. i'm the president of northern california chapter for national association for minority contractors and supplies. we are members sigtory through a union and there are a lot of in the bay view district surrounding san francisco areas, they are certified and small business and some [inaudible] there is a challenge to what the grouth growth and especially with projects in the bay view, transbay, everywhere around the city opportunity to grow their

business. the biggest concern is 3 things i wanted to talk about while raimened did a great job of putting out the reports, as you can see there is still a lake of par tisitation with ethnicity of all different people of color, contractors and suppliers out of the 54, only 36 small business is in a white owned company and the remainder 18 percent is minority. there is still a gap. as al has spoken about a couple issued being black balled in the marth place we heard from our members the sames they told our organization that lack of participation when they bid on the projects they find that the contractors come and the price is too high. also boo doing business and sustaining a business in san francisco is high. comepeting small

business outside city limit where the cost of doing business is a lot lower than san francisco. [inaudible] to look at san francisco small business first and if the subcontractor is biddingoon a job and the general is told the price is too high they urge them to the meet and discuss why the price is too high because there could be negotiation and collaboration between us in a general contractor because if they are just going by the low bid process, immediately they are out. this goalerize not going to be melt. if they are not going to be met these contractors that are in san francisco will be moving out of the san francisco market area. we'll have to locate to other cities to find-to be able to sustain their growth and provide jobs to the community. second item i wanted to bring

up to your attention is that-can i get additional- >> yes that was early. >> the second item is suppliers. while the construction contractors and supplies [inaudible] we would like to see it separated. there are many small suppliers in san francisco. many of them are minority owned of different ethnicity. it needs to be that the general contractors, the subcontractor usealize the sunchss in order to certified with cmd, a sploier must have a weir house with inventory. if we host inventory and pay all these overhead and not being utilized by the general contractor jz subcontractors that also includes minority contractors. we are talking about all of them. materials should bow bought from smaller businesses, small suppliers out of the city limit. [inaudible] coming in from the outside of

the city limit. that is a big challenge for us so we would like to talk more about that in the future. the third area is with the general contractor [inaudible] 2 big documents for block 53, block 54 where a contractor is not getting paid. contractors-minority contractors could lose their union license. they cannot bid on other projects because robert [inaudible] has not paid the [inaudible] or the change orders. it is constantly back and forth blaming the developer or somebody else rather than meeting with the subcontractors and really discussing what is the key issue here. if there was a change order [inaudible] then they should haneer it and

pay for the invoices due because what happens is these small contractors-some of them can lose their home because they mort gj their house and get a line of credit to sustain the growth to provide job tooz the community. if they are not able to pay the slry and union dues that is the key area they will be out of business. crablth contractors like robertobe aushy and others that practice these types of contracting, must be looked at very strongly or for future reference should not participate on these types of project. today i brought in 2 contractors with me presidio builders is one of them and astrobuilders are both here today and may share their point of view, but i also brought a couple documents i'll hand out to your staff to look at it. thank you. >> thank you.

>> is there anybody else that would like to speak? >> first i want to say good afternoon to the commissioners and all the members of the board here. my name is collide miller. i have vice president of ast ron development corp. we were one of the first subcontractors to work on the hunters point shipyard project. we started i think it was say september 2013. we worked on the project for approximately i would say 8 months working with

robertobe yausy. in working for robert [inaudible] in doing the project or goal was able to-we understood the small company here in san francisco we are given the opportunity to grow our business, that was the goal here. we thought that was the same goal that lunor, robert [inaudible] and the city had. we found out differently. in working the project we put everything we had into make thg project work. we came in with 250 thousand dollar line of credit and line of cash to careo our weight. we didn't want anyone to give us anythingism we carried our weight for 8 weeks. we carried our people and then lunor and robert [inaudible] couldn't pay us. and then it was always this issue and that issue and aortissue. every time it came time to get paid it was a issue about good getting paid. we

sent pay roll and they are not getting us paid. they carry the pay roll until we get paid from lunor. in doing that they-we are trying to work with them scr make the project work so we can have a successful completion and in doing that they are helping us by carrying pay roll, we did our part which is carry our responsibility until we get paid. their issue is they couldn't pay us when they were supposed to. now they carrying the pay roll they didn't pay the federal or state taxes and weoed 90 something thousand dollars in state taxes and don't know how much federal taxes because they didn't pay. at the end of the day they put us off the project saying we didn't perform and our job is-what we are coming here today for is for the ocii or

somebody have teeth saying you can't do this. we need protection. they say sue us in cort. we are is a small company and barely surviving now, we are is a small company. how do we survive to fight these guys in court? we need you to stup in and say you can't come in and do business in san francisco this way. we need your help. we don't need you to say, we can't help you, we need you to step up. we put everything on the line we got to show we can perform. and we did our job. we need someone to step up and say, this is government funding, you cannot do this. this thing is meant for everybody to subseed, not just you to succeed. we need your help in making this robert [inaudible] and other

contractors like them make a change. i do want to make a statement on one thing about the participation that i heard and want to make sure that the participation is good to get participation, but the thing is now we got participation let's make sure the companies on the site can have a successful completion. if you don't get across the goal line nobody knows you were there, you got to be able to complete. we want to complete and don't want anyone to give us anything. we want others to come in behind us. if we don't get the opportunity-why do you think it looks like out there in minority contractors? because we haven't been given the opportunity to complete. we want that opportunity and deserve that opportunity. we are asking you guys to help us to make sure that happens. thank you. >> thank you.

>> i have no other speakers >> this is a work shop so public comment is closed at this moment. it is in the hand of commission for questions of staff. commissioner singh. >> i just, mr. lee. how many business go outside the city? [inaudible] from the outside to or in the city? >> there is no preference given for [inaudible] outside of san francisco. to answer your question about the number of firms, i don't have that statistic but there are quite a few. we can get that number for you. >> i think we should get a preference from people in the city for the outsider. i like

to have these people. >> thank you. commissioner bustos >> look, this whole program that we talk about throughout the city and not just in san francisco, i know the city of oakland has it and many cities around the country that put programs like the sbe's and mbe's, lbe's and it is all about fairness. it is about doing what is right and you know, i appreciate your support i mean your report and i-utilize us because we know you have a tough job because you have to deal with some of these contractors and some staff in trying to get information so know you are not alone in this. i say that out front. these programs are put

in place to really lift up everybody and when i was on redevelopment on that commission , i remember when we were talking to some of the developers and we requested 50 percent i would say this is a hundred percent san francisco resources and all we are asking for is 50 percent. that is a damn good deal, right? we could be asking for 75 or match the 100 percent but we said all we want is 50. all we want is to give people in san francisco an opportunity to work on their city, to build it and so the numbers look promising but there is more work to be done and i think we need to talk to city build. folks from city build that are here, we need to

look at how to be creative and look and think outside the box to get san franciscoan to work in their town? that was the whole thing. i know when we talk about san francisco base sbe and mbe and lbe, there is difference between that and long term san francisco base sbe, mbe and lbe. i'm a broken record because people see what is happening in san francisco as another gold rush and they are coming in and setting up shop and say i'm a san francisco sbe but they just got here. when we have talented, dedicated people who have been here for decades investing in the city, investing in the communities hiring local people and taking care of local talent that is what i want us to capture. not the folks that just showed up yesterday and maybe it isn't good to say that

but i dont care. i think it is important-it goes back to the fairness. these programs were put in place to be fair and help people and so i would love our agency to be the one to lead the way because in some cases the rest of the city is not getting it and us as a small nimble and in my opinion very creative agency i think we can do it. know that you have us because we are passionate about it and committed about it, so i really challenge us to think outside the box on that aspect. you know, i like the idea that was brought up about separating construction versus supplies. i think maybe we should do that to break it down. i think it would add more color and life to your report because we need to know what is really happening and how it really looks on the

ground. you know, going back to fairness, i think we look what we can do in the western addition as mr. washington said and i definitely think and know tiffany you try today set up something withobe aushy and for some reason they were not around, i think we need to sit them down and sit down with lunar and say look-part of the reason they get the contractss is bought of what they promise and if they are not fulfilling their promise then one, that is false advertising in my eyes think maybe we need to look at the city attorney team to say what is going on here and what we need to have conversations with with the companies because we are talking about hundreds of millions of dollars that are at play here. this isn't small chump change, this is a lot of money, so it gives good reason to say wait a minute, you got

the contracts because of what you promised and if they are not fulfilling the promise we need to revisit it and figure out something whether we pay the contractors directly we take it out of what they get and we pay because small businesses are living pay check to pay check and shouldn't be afraid to lose their homes. with that in mind, i would love for us to somehow put together whether it be-staff helps us compile a list of complaints that we are getting from these contractor squz we need to hold them accountable. i say we share this list of complaints with any other city that would like to see this list of complaints because i know lunar urban is headed and wants to do work in oakland and if they are not fulfilling their contract with us and not helping small business other people need to

know that and we need to hold them accountable and with this list you can help us by reporting how knoo we are looking with the complaints, are they getting fixed because it isn't until we get on them they will listen because they'll want all these contractors want to do work in other places in the city. if they are going to lie to us then we need to let the world know they are lying to us and they'll lie to anybody to get business. i know i should shut up, but i just say, you know what, there is a lot at stack here and i think our agency has a history of being creative and trying to lead the way and i think we can do it because this is a city that prides itself in doing the right thing and that is why these programs were created in the first place, to do the right thing, make it fair and help people and go beyond just building a building

but lifting a entire community up. >> thank you. commissioner mondejar >> yes mr. lee, thank you for a very thorough report. my question is do you-2 things, the effort that our office does oryour department does in reaching out to new minority contractors and looking at the average of what you consider a sbe and it is pretty high for a new contractor to qualify, so my question is, what out reach do you do so we can engage more minority contractors to qualify? number 2, i would like to see if there are new contractors being brought in in your reports so we can at least say, yes a certain percentage

or 2 or 1 new contractor that is given a contract or subcontracting contract. >> in terms of outreach we have the developers do use the databasis. they have a number of sources they use as well in terms of advertising to ethnic papers. on our part when we come across firms on the networking sessions or through presubmitted meetings encourage them to seek certification whether they be in san francisco if they are outside of san francisco we tell them to look at the state certifications. in terms of tracking-i think what are talking about is microbusiness. we don't have a particular microprogram in our program but in terms of tracking microbusinesses and newellly formed businesses, that is something we'll have to devise a mechanism to try to capture.

i don't have a particular idea as yell in terms of how that track could take place. i know that the city of san francisco does have a microbusiness category that they use for classification purposes and under that basis we can track some of that data. >> so we really don't have any new contractors so to speak because we don't have a microbusiness program? >> i guess i need to get a clarification in terms of what you mean by new? newly established or new contractor on the project? >> new contractors on the project. i look at the latino community is 1.something and the asian pusichic american community i would like to get that increased but i also as commissioner [inaudible] we would like to give a chance to

some of the businesses out there who would probably like to work with us or do contracting with us but the minimum and averages seem to be very high. i just would like tasee what other efforts we have with your department or you do to tap these resources especially those who are businesses in san francisco. >> sure. if we are looking at new-contracts to business for the first time as a example when you consider new contractors that is easy to do. we have done a brief look at the construction field as a example. there is roughly 325 construction contractors here in san francisco of which 67 participated on ocii contracts.

>> my last question is the question about compliance for example part of compliance, is that is a subcontractor getting paid for example. is that a consideration that we look at, if they don't pay their contractors or employees what has been raised earlier, does that effect the relationship with us? what do we do? >> in our policy as i look there is nothing that speaks to subcontractor relations and payments but that isn't to say we don't get involved. the level of ininvolvement i have to say is somewhat limited in the sense that construction claims, construction disputes, there is construction law surrounding that and what we have done is advocate on behalf

of the smaller subcontractors to the extent we facilitate a meeting between the developer and general contractor we are going to do that. where we can facilitate a meeting to see if they can't come to terms with the disputes and try to find a resolution. unfochinately it isn't a simple black and white in terms of the construction area because of various claims, claim frz extended overhead and delays. different fingers pointing directions. there is construction law in settling those disputes and what i daurm from our policy that isn't is roll we take but we take a odvocase role in making sure there is fairness and these

disputes in some way get resolved >> this will effect the completion of projects and deadlines, right? i wonder if this commission can you know sort of institute some type of guideline when we grant contracts that this could be a item that could be included. i don't know. if it will impact the completion of our projects, we have a goal and deadline jz we penalize them if they don't meet it deadlines but if the workers are effected it is kind of a-the effect is out there. so, it is just something that we as a commission could look at and it is under your purview but this is something that could be discussed as a policy and include it in granting

contracts. >> and think that is something that could be looked at in terms of putting into the sbe policy and that is a matter for your consideration as commissioners. >> discussion item. i'm happy to. the item following this one is on the policy itself and you may be able to raise that >> we can bring that up as a item to be considered by this commission. thank you. >> i just want to say you don't have to go through the by yourself because you got us and i think that when we look at contracts and i complaints, you know, we don't want to say open pandoras box on that, but i think there could be a way we can say in our contracts that there is a certain number of

days subs needs to get paid and provide that and if that doesn't happen then there are fines or something and we can do something. i think you know us enough to know that we are behind you and we seek your advice and creativity to figure this out. >> i welcome that. >> so, i have a lots of points and i'll try not to be repetitive. i agree with the sentiments exspessed by my fellow commissioner squz want to go sthrou questions i have on the presentation and address comment members of the public made. i just want to make sure when we talk about participation numbers, i kasked this before, these are payments or this is at the front end,