[inaudible] >> -- and information from ocii's web-based reporting tool. [inaudible] >> -- slightly more than $109 million, and the bulk of this money representing spending on the commercial hotel. in terms of -- [inaudible] >> -- total small business participation exceeded 28 million or 26% of total contract dollars. on an accumulated running basis since 2014 and from each

project exception until december 2018, the overall s.b. credit on all ocii assisted contracts is 29.7 which is a decrease of 5% from the prior reporting period. notably contracts s.b.s for contract services remain above the goal. meanwhile, the percentage figured for construction and supply showed a slight decline over the prior six month period, achieving 27.7%, which is a dlaes of .5% from the prior period. when assessing the past four years of activity as the line graph indicates, professional services contracts have increased marginally by .1% while construction was declined by .5%. notice that the construction's

trend line began to drop in december 2016 and again in december 2017 with the commencement of nearly $2 billion in construction contracts for several high-rise structures in the chase arena. just for reference, type one construction is commonly found in high-rise building, containing structural frame and oth other fire resistant structures. [inaudible]

>> meanwhile, type one construction requires deep construction, and consequently affords less opportunities for s.b.s. at the request of the commission, ocii staff gathers minority and women ownership data on s.b. firms participating in ocii-assisted contracts. when analyzing contracts and awards by ethnic and gender i'd fee, over the six-month reporting period, nearly 50% of professional service contracts were awarded to women and minority owned s.b.s. meanwhile, nearly 17% of construction and supply contracts were awarded to women and minority owned s.b.s. the commission had also previously indicated an interest in understanding the distributions of construction

contracts by citizenshzip code of construction contracts were awarded to firms in the southeast sector of san francisco. now i'm going to talk about our joint venture program. in july of 2015, ocii amended its s.b. policy to clarify joint ventures and associations to intensefy small business development. under ocii's policy. sma since july 2015, 36% of s.b. dollars or 110 million were credited to j.b.s and associations. the primary beneficiaries of

this program have been african americans, $36.6 million and non-americans, at $36.9 million. in terms of outreach, staff continues to conduct out reach on -- to local small businesses through community networking as well as various publications and media outlets, including ocii's website and san francisco contract construction website. meanwhile, staff continues dialogue with owners of and small businesses.

moving onto workforce, ociis workforce practice is aggressive and it's unique in that it establishes a local hiring goal of 50% with first consideration for project area residents. it requires contractors to adhere to state prevailing wage requirements even on projects entirely funded with private dollars. we monitor compliance through our web based tracker. pri contractors and subcontractors are required to submit certified payroll reports through this system. the system also tracks employee information such as projects worked on, residents, and in most cases ethnic and gender data. that information is voluntarily submitted and provided by the employee. in addition, ocii has an agreement with the office of

economic and workforce development through that you city build department to provide day-to-day workforce compliance services. city build implements the day-to-day program and works with contractors and subcontractors on worker referrals and compliance. ocii staff meets monthly with city build to discuss and assess progress of ocii's workforce program. during the reporting period from july 1, 2018 through december 30, 2018, contractors logged 2.13 million work hours of which 324,176 hours or 15 is 2% of the total were performed by san francisco residents. although this is a decrease from 17.3% reporting in the last report, this nevertheless

represents 1,096 san francisco residents who worked on ocii-administered projects. this project also reflected the continuing challenge of local labor market within a booming construction industry. for all projects, left lane 8.5 million worker hours have been logged on an accumulating basis as of december 31, 2018. over 1.5 million of these hours or 17.6% were performed by san francisco residents. on average, san francisco residents performed more hours on ocii projects than non-san francisco workers, reflecting the beneficial impact of ocii construction workforce program on san francisco residents.

meeting workforce demands remains challenging. the demand for construction labor not only remains high but also it is higher than the prior year as evidenced by an increase of 37% hours of work performed on ocii projects. despite challenges, ocii and city build staff work closely with contractors and developers to ensure compliance and good faith efforts. meanwhile, city build continues to expand their out reach efforts to create a pipeline of qualified san francisco workers, including youth,

veterans and workers with significant barriers to employment. sfresk efforts have been made to engage the reentry population via referrals from the san francisco adult probation department. city build also works with private industry, the san francisco unified school district to expand out reach and recruitment efforts. most recent, city build cycle 29 produced 49 graduates. [inaudible] >> recent milestones for that project include completion of a third cycle of the chase center academy which graduated 30 participants. city build -- or the chase

center was also able to create 85 local resident sponsorships with different contractors on the project? and in total, 271 local residents have been placed on the chase center project in total. ultimately, what i hope is taken away today is that while s.b. participation and workforce numbers will continue to fluctuate, ocii and our city parters will continue to increase small business opportunities by encouraging supplier participation, encouraging joint ventures and associations, continuing networking and outreach within the s.b. community, expanding l.b.e. certifications through ongoing relations are the contract monitoring division, coordinating with the monitoring division.

promoting advocacy and technical assistance through organizations like bayview business advisory committee and bayview renaissance and working closely with city build to increase local workforce participation. i'm also encouragi-- [inaudible] >> thank you for your time today. >> commissioner mondejar: thank you. do we have any speaker cards, madam secretary? >> clerk: we have one, oscar james. >> commissioner mondejar: on this? none. >> clerk: no more speaker cards. >> commissioner mondejar: i will close public comment. yes, commissioner bustos? any comments or questions? >> thank you for the report. you know, my biggest pet peeve

is local san franciscans being hired to do the work. we only have one shot at this. these projects that we have in the pipeline are the only ones we have left. the governor's been talking about maybe doing a redevelopment 2.0, but we don't have anything in the mix right now, and so we need to make sure that we give folks an opportunity to work and build this city. this is a 100% city resource, so all we're asking for is 50%, which i think is a good deal. and i think our developers and our contractors and unions should realize the importance of the time we have in front of us. so chase, i think, has done a good job of trying to meet that

and exceed those numbers. there's no reason why other contractors or developers can't do the same. and i hate giving people a pass on this because this opportunity for us is not going to come back. so i hope we see the urgency. you tried? no, you've got to get it done. they want to do business with us, they've got to get it done. that's something we've got to make sure happens. we don't want to say ten years from now, you know what? we should have pushed harder because the opportunity's gone. i know on some of the professional services, we're looking at zip codes. you know, there's some businesses, firms that have just opened up shop in some of

these communities and are doing -- getting -- you know, from my friends at planning, i hear some folks are getting business -- they just moved here a few years ago, opened up in the bayview, and they can claim they have a zip code, but yet, there are other people that have been here fore -- for decades, and they survived all of the things happening in san francisco. i figure sher dedicated to san francisco, we should be dedicated to them. i so urge us to really push our partners to do more. i think people depend on this, and it's the right thing to do. we don't have much in terms of what we can offer, but opportunities to help build and create their city is one that we have, and we should cherish and see the importance of it. so thank you for the report, but i will be continuing to

push. and if i have to go talk to some of the developers, let me talk to them. i went, and i spoke to the subcontractors at chase, and you know, i told them my story, which is no different than so many other stories of people who grew up here and are living here. and they did a great job, and their numbers went up. so i hope we can -- like i said, i'll be happy to go talk to somebody. just let me know. >> raymond lee, contractor compliance supervisor. two things. one is the urgency. we certainly do understand the urgency, because there is a lot of construction contracting, there is a lot of opportunity. when the chase arena is completed at the end of the summer, there's going to be 3 million hours that aren't available. we understand the situation and

do understand the urgency. with that being said, there's been a lot of talk behind the scenes to get san francisco residents in particular in the construction industry. the chase center and morris and clark have been very supportive of bringing new entrants into the construction industry. there's been 85 placements or sponsorships. what these are and the significance of the sponsorship, these are individuals that are -- have now gone into the unions with the support of employers, so the employers have made commitments to minimum number of hours that they'll employ these individuals thoot -- i hate to use the -- that -- i hate to use the word indentured, but get them indentured in the unions and in the construction field. a lot of that has to do with you, commissioner bustos, with the talk that you give to

subcontractors. i have to say there was measurable difference in the tone of the subcontractors, and we would love to have you come out to others if your time permits. >> i'd love to. i'm sure there's other commissioners that would love to, too, if their time permits. it's just the right thing to do. it's that simple. you have to have commitment. if you want to do business here, you can't just look at this particular project. their success depends on how well they do and how well they treat our people, so we'll be happy to. >> sure. the second point i'd like to bring up is your observation about new businesses that are opening up in certain neighborhoods. we're cognizant of that, as well. we understand some of the tricks that are played in terms of having -- i'll give you an example of workers that are residing in trailers out at the candlestick and maintaining

residency there, so we see some of that, and we do confront the employers and so forth and certainly make adjustments and whatnot. >> and just on that note, you know, know that, you know let them know that we're asking this, and it's going to be asked once their projects -- i know i'm going to be looking a little bit more carefully and some from -- i think it -- someone from -- i think it may have been in the east bay, they were looking at what we were trying to do because certain things were happening in the east bay, that they started requesting from staff photographs of the offices in their pacts, so you can -- packets, so you can see there's a sense of how long it's been there. maybe we need to do that, too. but we have to -- at least we're on top of it.

>> commissioner mondejar: thank you. commissioner scott? oh, sorry. >> thank you. just quickly. i agree with our vice chair because i've heard comments and conversations on how some of the small business owners are not being given an adequate information and conversation as inform why they're being overlooked or put aside. they're asking if that happens, what do they do? there is a concern, and i would be willing to go and find out more about this. but i want to commend maria, yes, on the report, and thank you so much for what you're doing this for with all of that

work. >> commissioner mondejar: thank you, commissioner scott. commissioner singh? >> mr. lee, we see the asian and african, what about indian? are there people from indian? >> we categorize the people from indian in asian subcontents. >> i would just -- subcontinents. >> i would just request indian contractors be there in the meeting. >> i have to say this. we talked to a lot of the contractors that approached us. we have an open-door policy on that. so if there are issues of contractors that you come across, by all means refer them and have them contact us. we tried our best to get to the root of whatever issues that

there may be and help facilitate meeting if necessary to make sure that there's an understanding of why they weren't accepted or whatever the circumstance might be. so in the instance of your contractors, we'd love to talk them to see what their particular issues are. >> they should contact you? >> yes, please. >> okay. thank you. >> commissioner mondejar: commissioner rosales? >> thank -- thank you for the report. very comprehensive, as always, which is great. just piggybacking a little bit on the comments already, if there are few opportunities in the future, perhaps we need to think as a commission how to be strategy and how to be ensuring that whatever opportunities remain, whether on the contracting side or on the

labor side that we're being strategic about what we're doing. for instance, i see here in the reports the names of the general contractors. as i've said in the past, it's great to see that we're having -- that there's diversity in the names of the general contractors. there was a time when we started early on that we would see one or two or three names, and now we're seeing a lot of general contractors. i would love to see, rather than the names, the names of the subcontractors. because when i see these names for instance in the joint venture slide, there's 108 reported arrangements of joint ventures, but i'm not sure whether they're repeat partners here. so there could be 108 rng108 r

don't know that we need to know the names, but perhaps the zip codes that they're in. i think it's a point well taken that we continuously hear that the commission does really well in a lot of areas, in all of our project areas, but then, there are people that are left behind and there's no answers why their bids weren't accepted -- we're hearing it less. i don't know if you're hearing it more, because there was a time people complained, we competed, and we didn't get it. we want an answer, and we want a debrief, and we're not getting that anymore. again, if we want to make sure we're spreading the wealth that we have lowest, i would suggest that a, we know the projects that are ongoing and upcoming and also an understanding of what the -- kind of a little

bit of a capacity analysis or availability analysis of who could be available for those projects, especially those individuals that are certify today do the work -- certified to do the work and have not yet participated. if we can do that between now and our next report, that would be great. i think this joint venture slide, i've heard a lot of great things about our policy and here it' is. i have to commend our partners and our staff in achieving such an amazing success. $110 million is nothing to sneeze at, right? and on the labor side, i -- again, it seems like there's only so many san franciscans that are in construction that can work because these aren't just our projects, right, these are the city projects, as well. i'm wondering -- this is not a

question for you, ray, but it's a little bit like what can we as a commission do to think through with city build and oewd strategies, on, again -- that allow us to maybe give credit for not necessarily workers but maybe internships or, you know, pipeline approaches, something that allows us to give credit to that 50% because it doesn't seem like we're anywhere near it, right? we're, like, what, 17, 18? >> yeah. unlike the city's program, we don't have an off ramp, per se, off ramp, meaning a contract to cover a shortfall with some other project. but we have started to at least acknowledge the did faith efforts of the contractors such as the sponsorships, the placements into, you know, the unions and whatnot. maybe at some future dates we

could look at possibly formalizing a program to give recognition to those contractors that undertake those efforts in terms of contractors that have participated in joint ventures, you're correct. i think i saw one instance where they participated four times, and that's the maximum. but we could certainly provide you the details. it's not ten. it's greater than ten firms, certainly, but you are correct that there are some repeat participants. in terms of the capacity study, that is something that we've looked at, and we certainly would make a whole hearted effort to undertake. part of that study would be to look at possibly maybe looking at a formal set aside program

as an example. looking at the encouraging developers to put set asides of those amounts -- put carveouts for small businesses, so that is something that we are looking at. >> thank you. >> commissioner mondejar: okay. one more comment, commissioner bustos? >> maybe we can think of a creative way in which, you know, there's always so much construction that happens in the city. you know, and maybe it -- i remember back in the redevelopment days, we actually met with the planning commission for a yearly meeting where we met in the chambers to sort of share and talk about things. but one, there's -- you know, there's a lot of infrastructure work that's going to have to

happen in the future. our city streets and -- you know, you pull up any street in america, and you have 100-plus-year-old infrastructure that needs to be redone. so it's going to happen. i don't know if it's going to come through us, but maybe there's a way we can have a meeting with planning to get us working with ocii. for points where maybe there isn't enough construction work for folks, and -- maybe there's a way to do an apprenticeship that can look at technology or other industries that -- that, you know, we can prepare our people for and looking at high school students and getting

them into -- if they don't want to look at going into construction, then, i still say there's a way we can partner -- because as you said, it's really -- the success is really the support of the contractors, right? so maybe we can get them to support other things. if we can't get the 50%, there may be another way to get some support to get folks 'cause we want people to be able to afford to stay here. in order to do that, they have to have good paying jobs. >> before i hand it over to ken, i just want to say that one thing that we are looking at as an agency is help certainly support the mayor's initiative with opportunities for all. so creating opportunities for youth -- not in construction, but in other areas. >> and i do know that the planning commission, president melgar and i were together recently, and she said we're really using ociis model,

we're -- >> that's great to here. kudos to you, mr. lee. >> before you go, i have a few questions -- oh, can't have -- oh, go ahead. >> go ahead. >> well, again, good afternoon, commissioners. i'm ken nim, acting city build director, and really thank you, commissioner bustos for joining us at the choice to really give a pep talk. i consider us as workforce angels. the people we help every day, it's because of you sitting up there and folks working across the community in making sure we push contractors and employers to hire people from the community, the folks that are really in need. i want to thank you, community sesay, for making sure that

they hire community members. again, our workforce director, joshua orce, apologizes he can't be here. he also wants to thank you for the support you've been providing to the program, and also we have our acting city build compliance manager here, chris begara, who's pushing behind the scenes working numbers, reports. i have a lot of points that i want to address with some of the questions and comments that was provided from commissioners. first is beyond construction, and we've been working with the team and ocii staff in looking at what are other opportunities because one construction is done, it's construction. we're going to begin piloting some of these programs for high school and college students. and not just in the professional services arena, in construct, right? also, we are -- in our office, we work on tech. we have three other sectors nod to construction. we have hospitality, tech, we

have health care. so whatever building that happens in the mission bay or any of the redevelopment area, we have been working in four years, and one of them is with the chase arena, not just on the arena side, but on the office side, what is coming up. our office has been engaged with the developers in pushing for that, designing a program, whether it's retail, hospitality, that have opportunities for folks coming out of our program, out of office, to get those jobs. of course if there's tech companies moving in there, we get them -- uber, we've been talking with uber. drop box, they've been talking about a workforce plan that focuses not just on construction, but any job that comes through. we always have the model, no one left behind. then, on the construction side, whatever building comes up, the

staff -- ocii staff have been introducing us to whatever the companies are, and really engaging us, providing a service to your agency. we're here to help you train your future workforce. that's what we're about. also, ocii, i think this is what a lot of people don't see, you are setting the standard. i get phone calls on almost a monthly basis from around the city. they ask what can they do, and i tell them have an agency like ocii, where we have the training side, the compliance side, but working together in getting the employers and contractors in, right, and looking at ociis policies. some people may see that as a strong, a good faith effort. it's something that we want to push other cities to do, and i've been -- and hopefully, you allow me to do this. i've been advertising ocii, and i've been sent to denver and

new york and washington, d.c., and one of my policiopinions i and how successful it's been. this is where the partnership -- and one of the big things as we look at the future after the project is done is looking at landscaping opportunities. we are looking at putting landscaping opportunities in our portfolio, so folks are not just working on the construction side, but there's other work that's available. the other thing is i have special incompetent have itation for commissioners. cycle build 30. it's been three years since we last had our events. i want to hand this -- it's the 20 -- march 20 from 9:00 to

12:00, and definitely, we'll have program lunch and breakfast is provided. the main target is having developers come. you're going to get a tour to look at the different modules. the students are going to showcase what they're learning. hopefully, the employers when they see it, it'll give them more confidence that we're training highly skilled, qualified local residents. we're based in the bayview. a lot of our training is from the bayview, and whatever you need, if approximate we need to make adjustments, we're going to be here to make those adjustments and make sure that we provide some quality workforce development. so hopefully, i addressed some of those questions. >> thank you. thank you very much. i do have some questions, and mr. barnes, take note, we need to have a facebook release or tweet or press release about it. questions i have about it. number six on your -- let's see, slide number four, page

four, i have a couple of questions on issuance and bonding. is this being put out because it seems like it's a great benefit for our contractors and our subcontractors. i am curious about how many participants have taken advantage of your insurance and bonding that's out there. you help facilitate and let our developers know or subcontractors, especially. >> correct. for public works -- and i'll just draw on public works. with public works, one of the requirements is there must be a performance bond and payment bond posted for that project. and oftentimes, the subcontractor that's participating in that project

must post a payment and performance bond, as well because the general is -- would like to protect themselves. that's an issue for a lot of small businesses because in order to collaboratize that, they need to have a payment home, which a lot of small businesses do not have that. so we've been emphasizing that. surety bonds are an issue for projects. i think the industry has heard it, as well. the natural evolution in terms of ocps and ccps, i don't think we can taken tire credit -- >> no, it's not credit.

are you aware of how many business enterprises have taken advantage of it because i think this is very important. i was just curious about, since this is on your list since, like, certainly a benefit. >> i would say nearly 99% are undertaking this because it just makes sense for a lot of developers, for example. it's one way to control costs, as well. so rather than have 100 subcontractors on a project, each individually posting bonds to that, it's essentially a large umbrella policy that's taken out to cover the subs. it certainly relieves the subs to collaboratize, so it's beneficial in that sense. just one further example, with

the shipyard phase one, we not require a payment for permanentance bond in the project area itself, what they've done is undertaken coverage themselves. yeah, this is a benefit that needs to be promoted some more. this is an item that many many of the subcontractors is aware it's going to cost them a lot of money. number eight on the monitoring, do you do meetings -- you know, increase their chances so that they will apply again. >> on a case by case basis as it comes across, but it's really what the general contractor and their

solicitation effort, we report on that whether it's successful or not successful. when we do on a case by case basis hear of instances, we inject ourselves in terms of facilitating meetings. one of our common talking points is that for a subthat's having difficulty getting communication back is to have them e-mail the general and communicate with us. >> 'cause one of your bidders came to me and said she never was informed what it is that she needed to do when she was rejected -- their bid was

rejected. another question as a follow up, is you say here on page five of your memo, is that ocii assesses whether a contractor's methods were appropriate, sufficient and of the fault, quantity and intensity that should reasonably be expected. so have you -- what -- can you give an

since this is the last item on the agenda. any way, i want to kind of

piggyback on the workforce development 'cause they're doing a -- they've done a tremendous job during the years, and i want to commend them personally. you know, one of the things that kind of tickled my ear when ken was talking about going to the high schools and going to the young peoples, you know, a lot of peoples in these communities, hunders point, potrero hill, sunnydale, and you're talking about, bay and g

in mission bay as a group. because you're going to have one group here, one group here -- if you put them together and don't talk to them before you put them together, there's going to be some problems. we did the same thing when we built the new housing in hunters point. we talked to each person on -- when they got their certificate, how to maintain their houses, how to keep their houses clean, not saying they were nasty or whatever, we talked to the people and say if they had any problems, to deal with them before they go into new housing. that's something i think we need to do, to go and start talking to these peoples on individual basis so they can get into these training

programs. >> commissioner mondejar: thank you. >> they're scared if they go to western addition, they get shot. a bullet don't have no name to it. when somebody shoots, just like yesterday, two people in a family got shot, and they were innocent bystanders, you see what i'm saying? we've got to kind of create that -- a way of -- eliminate that problem, you guys understand what i'm saying? i would like to work with workforce development in my group to get together and start doing some of these things, you know, but it's a good thing to start in the high schools. you can eliminate that stuff before they get out into the streets. so. >> commissioner mondejar: okay. thank you very much, mr. james. >> thank you. >> clerk: no more speaker cards. >> commissioner mondejar: and we'll close public comment.

madam secretary, call the next item of business. >> clerk: the next item is report of the chair. >> commissioner mondejar: i have no report. >> clerk: the next item is item eight, report of the executive director. >> thank you. i want to note that you have a letter in your binder. it's the rescission of the demand to perform obligations under the d.d.a. block eight, the grocery store, as you know. the last meeting, we received a letter from the attorneys related the developer on block eight, and we now have a letter dated january 25, rescinding that notice of default. so wanted to share that with you. and then, additionally, i wanted to give an update. the state department of public health and their work on parcel a-1 in the hunters point shipyard phase one. as you know, they've been doing progressive weekly reports. they issued a workplace,

they've been doing work plans, retesting the soil, and under shipyard phase 1-a-1, and last year they completed and issued a final report. but they were also required to continue to do analysis on the data that they had collected. so finally, on february 5, they released a report saying parcel a is safe and has no geological hazards in shipyard. so that's a good news. and specifically, as you know, there's a-1 and a-2. a-1, they did a work plan, and they're now going through the data of the analysis of the work reflected, and they've released weekly reports. the final report came out saying call

the next item. >> clerk: the next item is item nine, commissioner questions and matters. madam chair? >> commissioner mondejar: any commissioners, questions, matters? i have one. i want to thank mr. barnes for the weekly round up on all the articles that affect ocii and the commission. that has been very helpful because it keeps us informed especially because there's so many obligations that are out there, and it helps commissioners not getting blindsided and not -- you know, when we attend events