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[applause] [applause] >> thank you. >> the comments made earlier by charlie walker are completely false. i've invited him down to our apprenticeship program to see our diversity. he's never taken a step toward that. he's uninvited at this point. with that said, we've moved considerably to address the l.b.e.s. we moved bigtime. we've listened. that's why we've been having these meetings. at least a lot of pushback coming from the lbs, coming from staff, coming from other people with personal vendetta's against the union trade. it's just antiunion sentiment.

we're here to protect the workers, union and non-union workers. we're going to do that. >> thank you. >> honorable supervisors, alex lanesburg. i want to be quick. there's a bunch of information and misinformation. it's on there. i'm sorry this isn't bigger. my computer died. there were numbers being thrown around about apprentices and diversity. i want to share facts. the blue line is ibw local 6. the orange line is sbc. another bad contractor. >> they cannot match the apprenticeship numbers of lb6. number one. when we take a look at

graduation rates, again, we don't see these guys coming anywhere close to what we do. when we take a look at total enrollment over the past 16 years, over northern california, over the entire northern california -- >> it's okay if he can just finish this last slide. >> this is the last slide. local apprentices, blue line, light blue line, women. gold, abc. again, 40 times the number of apprentices done in these union programs. the abc is another bad contractor. >> thank you, mr. lanesburg. [applause] >> good morning, supervisors. mayor elect. john doughty, electrical 6. at least been a really coordinated misinformation campaign coming across to us

today here. the p.l.a. doesn't restrict l.b. contractors from bidding to work, doesn't require that they're no longer eligible to bid this work. it's in the law. we have to do that. local hire is not under threat by this p.l.a. local hire is a success because of the building trades unions in san francisco. based on the slides you just saw from alex, northern california abc who was helping to coordinate this misinformation campaign can't in half of one of the most populous states in the country cannot match the numbers we do in 49 square miles because they don't have a complotmemitm women. they don't have a commitment to african-american -- [applause] >> thank you. >> good afternoon, supervi supe.

thank you for moving this forward. i'm a life-long resident of san francisco. i'm also a representative of liner workers local 377. unfortunately, i'm here about myself because all of our apprentices and journeymen are working. i represent over 3,000 members in the bay area, hundreds of apprentices and journeymen in san francisco. i urge you to move this forward and ignore the false information that's coming out from both sides. we appreciate your help. we look forward to moving this forward. thank you. >> thank you very much. [applause] >> are there any other members that would like to speak on this item before i close public comment? please line up. step up to the mic as soon as possible. >> hello, committee members. i'm here representing the electrical contractors association. our associations members have

served san francisco and the residents since 1909, employing 3,900 electricians and administrators and support staff. the association's practices encourage living wages and coverage and benefits for over 3,000 families. we partner with ibw in journeymen and training. some of the things we ensure are that we meet the local and private requirements, support numerous neighborhood programs, volunteering with rebuilding together projects, offering scholarships and internships to local students. we fully support the p.l.a. and hope you do as well. thank you. >> thank you very much. [applause] >> seeing no other members of the public come up for this item. we'll close public comment on item no. 22.

colleagues, i'm closing comments or questions. supervisor safai. >> thank you, madam chair. i appreciate everyone's comments today, those that kept it within the bounds of kind of focusing on advancing a positive conversation. i think, again, this is not an easy conversation to have. in my short time on the board, this is probably the most difficult issue that i have been involved in. i appreciate, again, supervisor fewer and peskin for engaging in this as well as the city staff along with president breed over the last number of months. i do have a few follow-up questions because i think that base on what i have learned in these conversations over the last few months, i have heard some things that i don't find to be -- things that i find to be true as well as i think it's not helpful for our conversation to

put things forward that i don't think are really factual. one of the things i want to ask directly to our city administrator is: from where we were in our conversations the other day, there's this conversation of l.b.e. discount or a 10% discount, how that kind of plays into the contracting process, i would like you to talk about that a little bit. and this is something we had in our conversations with the l.b.e. city folks as well as the building trades. there's a threshold in terms of contracts that -- and i believe -- correct me if i'm wrong -- 5 million and above, usually the folks that are bidding on the projects in this city, contracts in this city, that are about 5 million or more, they're almost 100% sigtory with the trades. i think this talk about threshold and excluding l.b.e.s, i think in our contracting process -- i would like you to

illuminate. there's a threshold with which we see 100% of the folks that are signatory with our local building trades. can you talk about that a little bit? >> supervisor naomi kelly. let me take the first question you asked about explaining the local business enterprise ordinance quickly in a nutshell. it has evolved as prop 209 was enacted and minority and women owned business ordinance and is now our local enterprise ordinance. we buy many different types of product services in construction from the city, but when it comes to construction, contracting a small local business can be certified to do contracting if they have an average gross receipt of $20 million over three years.

and then in construction, per state law, you bid on these contracts, and the lowest bid wins the award. since then, chapter 6 has different delivery methods, but if you do the traditional low-bid method, then if that dollar amount of that construction contract is under $10 million, then the lowest bid, they happen to be a certified l.b.e., that they can prove they are principally headquartered near san francisco, have the average gross receipts of 20 million or less, and are licensed in that trade that the business is on, then they can get up to a 10% bid discount. with all construction contracts, no matter how big or small, there's a subcontracting goal tied to that contract based on the availability of l.b.e.s that are there. when we're looking at thresholds, we're looking at --

and i don't have the numbers with me. it's something that we can come back to and provide that, but we o-l.b.e.s in the themi construction industry are bidding up to about 5 million. as everyone represented, frankly, we traditionally have been a union town on most of the big contracts that most of the contractors have been signatory, but i can't give you -- i just know the -- i don't have the facts here with me today. >> what you would you say is the percentage generally of the folks -- i mean, how often are l.b.e.s winning or certified, as you said, in that 5 to $10 million range? are they winning a significant share of the contracts in the city? >> i would like to defer that information. we have here in the chamber, romulus --

>> that would be great. >> we have edgar lopez, the deputy director of public works and our city architect and oversees project management. i know phil ginnsburg isere who can talk about the work at brecken park. >> okay. why don't we call up romulus? that would be helpful. i'm trying to build somewhat of a picture of how often, how well l.b.e.s are doing in that range. i think it's a credit to the l.b.e. program in our city and how the discount plays into helping to advance and support that environment. >> so the question was regarding how they're winning from five to ten? >> yes. at five to ten, they are -- i don't have the exact percentage,

but it's definitely not as successful as that below the threshold. certainly you will see a good amount of l.b.e.s. >> so a good amount of l.b.e.s are winning in the contract range. >> correct. >> so through the city administrator kelly, you talked about the subcontracting goals, and you said up to 5 million. can you explain how that plays into our conversation today? >> so we talked about bidding as a prime. many of the micro-l.b.e.s are successful -- >> so five to ten million. >> no matter how big or small the construction contracts are,

the former human rights commission put subcontracting goals on the project, whatever is being bid. no matter if it's a $5 million project or $25 million project or larger. with that, there's no magic number. it's based on the contracting availability. the subcontract can be anywhere from, like, a million dollar or $500,000 to much more than that. that's all negotiated out. >> and so they tend to be less represented -- they're less signatory. correct? >> it all depends on how small. anecdotally, i don't have this evidence. the smaller shops that are what we've seen. other folks could come back. the smaller shops that are, like, four people, five people, they've tended not to be union. the larger shops, a lot of those larger l.b.e.s tend to be

signatory to a union. >> i'm trying to focus the conversation a little bit more for the audience. i want to help disspell some of the information that's out there. we have a program that to your credit and to the credit of the people in the city, we've created over the course of time, as you said, 14b has been in existence, and a major piece of that is the discount. that happens between the five to ten million range. some of those have spoken here today and are represented here today. they're signatory to labor. i'm sure they started out in the mic microrange but they graduated to a signatory. that's all i have for now. also, through the chair, i wanted to call josh back up, director of city build.

mr. arsay, so for the audience, some of these questions i already know, but sometimes i ask questions so we get it on the record. for those listening, the audience. how long have we been in existence and how long has the business been in the city? how does that interface with this conversation? and then i have a follow-up question. >> okay. absolutely, supervisor. josh arsay, city build. city build was established in 2005 and began training candidates in the community starting in 2006. it was an initiative that was cataali cataalized.

it's graduated more than 1,200 graduates going back through what is starting now in the third week of our 29th class. it's an 18-week program. you can do the math in terms of two classes a year, sometimes during the summer. as i mentioned, sometimes we recruit with organizations in our most disadvantaged communities. we're trying to find workers of color, women, limited english-speaking, formerly incarcerated, to help them gain access to the construction industry. our partnerships are with jointly administered apprenticeship programs and the counterparts of the training centers. they're called jtcs. to your point, i think very specifically, which is how it works, when we graduate city

build pre-apprentices who are ready to become apprentices through our partnerships with the building trades -- as i mentioned, they were 49 graduates -- they go in and become apprentices, then the contractors go out, win contracts, it's everything covered under the mandatory local hire ordinance -- >> i'm just going to trust you one second. i'm going to say for the record that as part of the conversations, we made a strong affirmation in this joint agreement to say local hire would in no way, shape, form, be undermined by an alternate agreement in the p.l.a. >> i haven't seen the information in the details. i'm speaking to the general way we do business. if you're a contractor, you have requirements to have a 30% local workforce on every single

classification on workers you bring on the job and 50% local apprentices. in order to reach city build grads, you can think of it honestly. a lot of them are working too. there's 1,200 out at the moment. the only way to bring them on the job is to work with the labor partners we work with to bring them into the apprenticeship. that's the thing about the way it works. >> i know you haven't had a chance to read this, but just in your experience and the time you've been working with city build and i know you were involved with local hire. do you see this as a way to strengthen, as a pathway to enhance and support the work you're doing at city build, potentially? >> i do. i mentioned in a project labor agreement, you have all of the partners together at the table. i do absolutely want to be cognizant of the concerns of the l.b.e. contractors. again, these are a lot of

contractors who are out there who have testified and started with the tools and became company owners, and they benefit from the l.b.e. program that you said is successful and being replicated around the country, most recently san jose. i think a project labor policy that puts everyone together at the same table and addresses these policies, is going to continue to allow us to expand city build like we're going with glen eagle, doing training inside the jail, all these things mean more graduates come out, there are more contractors working with our trainees. all these programs and things, we want to make sure they're sustained under whatever policy

we take, but we're ready to make it work. >> thank you. i don't have any other questions right now. >> thank you, supervisor safe -- supervisor safai. >> supervisor peskin. >> first, i could like to move -- by the administrator. i would like to set out at least where i'm coming from, which is a do-no-harm theory, which is to say that we've done p.l.a.s before. as a matter of fact, they did not only not do harm, they did good. and the question here is: what is the mechanism for independently assessing whether any of the stated fears from the community are actually coming to pass? to that end, i think there's a role for our independent controller to play in making those assessments through an

agreed upon set of metrics and data, what we want to see, whether it's work stoppages, whether it's demographics, whether it's l.b.e.s who have been adversely impacted. so it is in that area -- i just want to be transparent with everybody -- that the negotiations are moving. i really want to thank, actually, ms. troy and mr. garza, who have been very helpful in those negotiations and look forward to some good faith, tough negotiations over the next few days. and if the committee adopts it, there's nothing like having a deadline to move things along. so i would ask that this be scheduled at the next regularly scheduled meeting of the government and audit oversight committee so that the pressure stays on all of us to get this done.

>> thank you so much, supervisor peskin. supervisor peskin has made amendments to items number 22. can we take those amendments without objection? and we can. i just want to take this opportunity to thank all of our stakeholders for engaging in vigorous negotiations over the last couple of weeks. this has been pending for over a year. it's great that we're finally making movement and having a dialogue amongst our building trades, minority contractors, city departments, and naomi kelly, our city administrator. i look forward to these continuing conversations around the scope of the work that a p.l.a. would cover, the source of revenue for the programs that would be covered under the p.l.a., the threshold, and core workers which came up in public comment. i do feel like we're really making a lot of good steps forward.

i look forward to an agreement that we will all be unified around, which will increase worker protections and ensure that we are providing all of our trade workers with the benefits and the wages that they deserve as we continue to grow our city, but to allow our minority contractors to continue doing work with the city and to compete for many of these projects as well. so i do just want to acknowledge everyone's work and also want to give a special thanks to supervisor peskin, fewer, and safai for taking on the leadership for these negotiations. we do have a motion to continue this to the next gao committee. i would suggest that we continue it to the call of the chair because we have only one scheduled committee meeting in july, and we have a number of items for that meeting as well. >> you are the chair. i just want to make one point about the core employee issue, which is -- there was actually

very good negotiations around that where i think the contractor community, the city departments all came together. so part of the reason to have these hearings and not make a vote today is to people can actually sink their teeth into it. i heard comments from a woman-owned business who was worried. the way it's written is at at least two. i actually think that the building trades and the contractors, both of whom are signatories, understood that this would actually get hammered out in the p.l.a. itself. i just want to put that on the table. it's not as onerous as it looks. >> it is my understanding that it's a minimum of two workers that's been reached an agreement by now, which will later get negotiated after we pass this ordinance at the board. so supervisor safai?

>> thank you, madam chair. i just want to re-emphasize some of the points that supervisor peskin said here at the end. there's some important conversations that we had in our negotiations that are not reflected in the updated version that you all get. i know that a lot of reaction today was based on an older version of the legislation. that often happens. unfortunately because of drafting, because of timing, because of where we are in the process of negotiations, what's online and what is available to the public is not what we are actually working on. we may be two or three steps ahead, and it's just based on the legislative process. i want to be clear. i think there was a lot of consensus on both sides about the data driving the conversation further and trying to achieve goals in this legislation, in this overall agreement, based on data. and supervisor peskin touched on those. we're not going to get into the overall details right now, but i

just want to say that will be reflected in the next version when we come back on the 18th in july. there will be agreements around what data we're measuring and how we move the conversation forward based on data. that's a very important point. so i just wanted to overemphasize that a little bit. so thank you, madam chair. >> thank you so much, supervisor safai. are there any other comments from committee members? >> i'm seeing none. we have a motion to amend. i think we passed that objection. i will ask for a motion to continue to the call of the chair. we'll schedule it in july but not at a date certain. we have a motion to do that. we can do that, again, without objection. i want to thank all the members of the public who waited patiently through all 21 items and came to speak at number 22. we look forward to seeing you at the future audit and oversight

committee meeting. mr. clerk, i would like to call up items number 23. -- 23 through 29. -- if members of the public could exit quietly, we're continuing our committee meeting. thank you very much. >> clerk:ing a items are various ordinances authorizing lawsuits against the city and county of san francisco. >> thank you so much. at this time, we'll open up for public comment on items 23 through 29, if any members of the public would like the speak on any of these items, please come up. seeing none public comment is closed. can we have a motion to continue in closed session. we can do that without objection. we're asking the public to leave the room so the committee is continue in closed session.

[ closed session ]

>> clerk: we are now back in session. >> thank you, mr. clerk. we're reconvening in open session. i'm going to call on your attorney. >> during closed session, the committee voted with 2-0 with supervisor breed absent to forward items 23 through 29 to the full board with positive recommendation. >> thank you so much, mr. gibbner. we have that motion. >> and i will make a motion not to disclose. >> we have a motion the move forward with recommendation to the full board. we can do that without objection. motion to not disclose first. we have a motion to not disclose, which we'll do without

objection. and, finally, we have a motion to move these items to the board. we can do that without objection. >> is there any other items before the committee. >> there are no other items. >> thank you very much. meeting is adjourned. .

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