that additional 2% that lbe's receive is no longer part of the legislation.also concerns raised by the budget analyst and several of the committee members about how we ensure benefit corporations are doing the right thing, providing the types of benefits to the world and our community that we want. we have included a number of amendments to address that. first of all, there is now a requirement that any business that is applying for this discount need to have been incorporated as a benefit corp. for at least six months preceding the application of the discount. on top of that, this legislation does not go into effect for three months, to give the agencies time to adapt to the possible use of this discount. one thing that was suggested by the budget analyst was to provide hrc with a greater role of ensuring the verification of corporate statuses. there are two additional amendments placed on this legislation to address that. hrc will have a role in not verifying the corporate state. in addition, there would promulgate regulations to insure third-party verify h

i know of two lbe's, veterans, who have the necessary qualifications. i am going to encourage them and other veterans so that they participate in getting jobs with this contract. this contract should not go to someone that lives out the veteran's. towards that end, as i stated, i am going to do whatever it takes to get some of our veterans involved. it is true that sometimes the prime bid is for a certain figure, but what has been happening again and again, and i am not saying anything about this case, is that once the primes get in, then they start the amendments. and before you know that, it becomes a joke. and i am not referring to this case, but again and again this is the way the primes do it. they bit, they low bid, and once they get in and get the necessary amendments, and i know in this case the budget analyst did not state that these amendments are necessary. this also gives me an opportunity to tell the chair of the budget and finance committee that we have to be cognizant of the fact that many crimes low bid, and once they get in, they make t

our lbe's are protected 100% in this legislation, as our san francisco corporations and nonprofits. we support this 100%. happy to answer any questions. supervisor chu: i do have a number of questions, but i would like to ask the budget analyst if he wants to present on any changes made to the reports. >> members of the committee, madam chair, in response to the committee's questions, we had initially looked at construction contracts and give you the estimated impact of that. we also have now looked at professional services contracts and concluded that you really cannot tell what the impact would be by granting discounts, whether the lbe, benefit corporation, or whatever. of professional services contracts, cost is just one factor. therefore, the city cannot track the result of granting any discounts specifically related to what the additional cost would be because of the various other factors that were determined in a sporting professional services contracts. we also, at the committee's request, looked at various commodities. the only one that was applicable -- we did a small sampl

of the committee that we need to go back and work with bae and its contractor to see if there is an lbepotential for this project, we would be happy to do that. supervisor kim: thank you. supervisor chu: thank you, supervisor kim. why do we go to the budget analyst report? >> madame chair, members of the committee, on the bottom of page five of our report, we point out that table 1, which is shown on page 6, shows the total estimated cost at $5.7 million for this project. that excludes the certificates of participation in financing and interest costs. the table there shows the total cost of $5.7 million. then, on page 7, we state that, as shown in table 3 on page 8 of our report, the estimated cost, net of the revenues that the port would receive from the shoreside power project -- that is the equipment usage fees as well as the rebate from the puc -- and this table 3 includes the certificate of participation of finance costs. mr. bentsen stated that the port does not intend -- does intend to continue the usage fee, which we have suggested, on page 8 of our report. we consider approval

i see, from talking to over 50 lbe's, something is not working at the human rights commission. many of the combined processors are stressed. i do not know if we need to address the health department to do something about it, but my concern is that if we have the big operation and they are suffering today, who is going to do the compliance? all i am asking is whether quantity to be sold. if things do not work out, there was the belief that there needed to be a sunset cloud, which i do not see. thank you very much. supervisor chu: thank you. next speaker? >> thank you. i appreciate the opportunity to be here speaking in support of this desolation. i would like to stress the reason that my company changed was to legally protect our commitment and 10% of our gross profits being tent -- being donated to charity. a huge part of being a california benefit organization means giving back to the community. another reason for this legislation is to make sure that there is adequate protection for nonprofit lbe's who are worthy recipients around these contracts. this legislation is in align

the lbe discount is not active with this discount, which i think is an important concept. second, it does not edge out a local business that might be employing a san francisco residence which is an important component. it stands out any subsidiaries to make sure true benefit corporations would be the ones eligible rather than larger corporations that may have a subsidiary. finally, there's a time when it composite so that in three years, the board has to act affirmatively to renew this project. i do have a few reservations. we have worked closely to streamline our contracting process to prioritize local small-business is and i do have some concerns around commodities but i think those will be addressed. with the changes and amendments, i feel comfortable supporting it for this pilot and wanted to articulate a component. thank you. president chiu: will call, please. >> [roll-call] there are 10 ayes. president chiu: this item is passed on first reading. >> item number 18, resolution approving the professional services agreement for the management and operation of the airport

we have a 40% lbe participation. most of the increase is due to design work to increase north point changes which i just discussed previously. all this was not in our scope. most of the scope will move into phase two of the terminal which -- of the project which is non- terminal aspect -- non-cruise terminal aspects. the requirements affecting the northeast wharf plaza design, the north tip design, access from the embarcadero to the north tip and repair 29. fencing and lighting in addition to restrooms. all these items keep adding to our scope without providing funding. the design team will have to provide general architectural services that were provided by the department of public works staff. this will represent an increase to the design team contract and a deep -- a decrease to dpw for their services. dpw as part of an agreement with the civil service commission provided services to the project and they had to pull back their architects to work on their projects. obviously these design changes will have an effect

there wil lbe more town halls. supervisor olague will announce her next, and thank you. >> i would like to thank ed lee, for years i have organized this event. this seat was always empty. i want to thank hom for engaging with all of us and sharing the priority for the district. as promised, there will be more opportunities for you to express your feelings about the budget priorities. we will have this pariapril 25 t the county fair building. there are fliers as you leave. i want to thank you for coming and sharing your priority with us. we will work hard to meet those priorities. thank you. [applause] >> well, we certainly got off to a good start. last year, when we started this, -- i will tell you, one reason why i think there are a lot of programs that are safe is because you conducted yourself in a way we listened very carefully because he represented yourselves well. people often say that we are a very rich city. i think that we are a rich city not just because we have a budget of $6.80 billion, we are rich bec

another reason for this legislation is to make sure that there is adequate protection for nonprofit lbe's who are worthy recipients around these contracts. this legislation is in alignment with the commitments to the business and a strong statement of the types of businesses in san francisco that they want to recruit and do business with. lastly, encouraging more businesses to consider the type of impact they have had as a corporation in giving back to our community and shelve -- shareholders. thank you. >> thank you, supervisors, for allowing me to speak. i wanted to talk quickly again about the advantages as an employee plan working in this organization. i know that amongst youngsters, working for companies that you have a motive with and are more aligned with, it is a great opportunity. for me, personally, it is like be -- it is why i came to san francisco we wanted to encourage this moving forward. i am fully in support of the legislation. thank you so much for your time. supervisor chu: thank you. >> my name is andy and i am the director of community development at b lab. we have a f

it wil lbe at or around

it wil lbe at or around $10 million, and i don't think this is excessive. we had the homicide case that was solved in 48 hours, but cost $80,000 to make the case. it calmed a neighborhood, and a bad guy got put in jail. this is one instnace, nance, ane are at $1.3 million in occupy expense. this gets expensive, when those things go on. all of this added together requires us to move some money from the salary infringed overtime budget. >> supervisor avalos? >supervisor avalos: is there cost recovery? we don't charge the fee for service in that. >> when our people travel they get the same benefit and we are not billed. supervisor avalos: we don't have kings and queens in san francisco. >> it depends on who you talk to. >> i should learn to say -- >> the next slide is on vehicle replacement. when we talk about staffing, we don't want these cars in the station. i want an electronic tablet that acts as a phone so the officers just leave the station and stay out, on a beat or in a car. they are not in the station. to that end, just like civilians are cut out of t

>> i have not seen the language, so i think this is for non-lbe. >> david said he was going to reduce it, but i did not know to what. >> the legislation you will see in the committee meeting is what was originally introduced, and then at the committee, amendments are made, so he sent me this list that is the proposed amendments. goocommissioner o'brien: i wondr if it is going to be after the retreat of we will have the committees again? >> we are going to do that after the retreat. any other questions? next item. >> item 10, president report. but such as want to report we do have a retreat next wednesday -- i just want to report we have retreat next wednesday at 1:00, but the business tax reform roundtable have to do with sand and cisco region with san francisco -- has to do with san francisco. every other city has a gross receipts tax, so the city economist told the round table to see what affects that would have on small business and in the ideas of what would come forth and if there were a change, so we have heard a lot of ideas this evening, and we will be meeting with the control

it wil lbe at or around $10 million, and i don't think this is excessive. we had the homicide case that was solved in 48 hours, but cost $80,000 to make the

having said that, since i know we have a number of companies that are lbe's, went through the process only to find out now that the port is stepping into its general fund, and a budget analyst and controller's office and the board of supervisors they that that type of model where dpw somehow is left out, but our engineering is given more than any other company would ask for and will be able to complete this project. some of you may not understand what i'm saying, but i hope you understand it in three or four months' time. i find it very surprising that nothing came before the land use. we have spent millions of dollars on pier 7. i would like the budget analyst or whoever is in charge to give me some analysis on that contract. having said that again, whatever the port does, this public trust land that belongs to northern california, they should make every opportunity to give us jobs. thank you very much for your time. supervisor chu: thank you. are there other members of the public who wish to speak? seeing none, public comment is closed. >> i believe there was an indication from the

i see, from talking to over 50 lbe's, something is not working at the human rights commission.y of the combined processors are stressed. i do not know if we need to address the health department to do something about it, but my concern is that if we have the big operation and they are suffering today, who is going to do the compliance? all i am asking is whether quantity to be sold. if things do not work out, there was the belief that there needed to be a sunset cloud, which i do not see. thank you very much. supervisor chu: th

i was not able to do that, but i do want to state with respect to this ordinance provision that the lbe requirements of city code, local hire requirements will apply to all of this work, and i can speak to what we have seen, but -- supervisor avalos: if we could follow-up on that would be great. supervisor chu: thank you. we do not have questions, why don't we open up for public comment? are there members of the public who wish to speak on this item? >> good morning, supervisors. i would like to speak in favor of this ordinance. it is obvious this is a world- class event, and i would like to stress two items that relate to the improvements being planned here. one is that, according to my reading, the event will be televised probably around the world, so whatever improvements we make, you have to factor in that there will be a very innovative use of cameras and ankles to cover this event, so we should keep in mind that whoever is going to broadcast this will be needing certain up to date improvements to broadcast it innovatively. second is that whatever improvements we make, we have to c

it is an lbe company. that company has a history of doing construction work on the waterfront, including dredging. we look forward to the opportunity of having our captain man and a ferry charter business that may result from the america's cup, so we urge you to support the resolutions before you. thank you very much. president chiu: next speaker, please. thank you. >> i am martha, a trustee of the park's conservancy, and i also chaired a board committee. i am speaking today about that thousands of donors to contributed towards the restoration and all of the volunteers that work very hard every year, as well as all of the visitors. over six months ago, we met with the feeling of being the authority, the national park service, and the city of san francisco. all parties agreed that chrissie feels should be in better condition as before the events. we were to to make that a true guarantee. after six months of working with the event of 40, we were able to mutually agree to a concept of a letter of credit from