Thank you. Supervisor tang . I dont have a question, i did have a chance to look over all of our summary sheets and i want to thank you you and your team for all of your work and even when we think about all of the contracts that you had to negotiate this year it was a huge headache and so really thank you so much for all of your work and i know that all parties had to come to an agreement, for the best of our city, and so, again, just wanted to express my gratitude. Thank you very much. And i want to express my surprise that you reached an agreement in such a timely manner, before we were. So thank you and your team for your hard work on this and we really appreciate it. Colleagues . Are there any questions . No. Any motions on the table . To make a motion to on ford. You need to take the Public Comment. I apologize, are there any members of the public who would like to make the Public Comment at this time . Seeing none, Public Comment is closed. Colleagues, are there a motion to move these items forward with positive recommendations . So moved. As the Committee Reports . Committee reports . Yes. Okay. So motion to move item 1 through 31 that is the Committee Report to the full board of supervisors. Yes, with recommendations. Yes, thank you. Without objection, without objection, the item moves forward, thank you again. Madam clerk, could you please call. We are just going all over the place today 34. Item 34,resolution authorizing the Mayors Office of housing and Community Development to submit an application to the California Department of housing and Community Development for funding under the calhome program; the execution of a standard agreement, if selected for such funding, and any amendments thereto; and any related documents necessary to participate in the calhome program. Okay, is there someone from the Mayors Office of housing that is presenting today . Good morning supervisors i am the director of the Home Management and the below market rates at the Mayors Office of development and this is simply interesting your permission to apply for cal home funding which we have done for the last, i believe, five years. The cal home funding that we used 1. 5 million and we are requesting to provide down payment assistance to our below market rate, home buyer purchasers. And if there is no fiscal impact to a city, it would allow us to provide 25 loans to, and below market rate, buyers, and it also actually it generates a little income for us to cover the cost of facilitating the program. And a small grant to our nonprofit partners who provide the Home Ownership education and counseling to our bmr buyers. Thank you. Okay. Thank you. We will open this item up to Public Comment, is there any member of the public that would like to make comment . Seeing none, Public Comment is closed. Colleagues, could we take the item without objection . Without objection, this item passes. Madam clerk, could you call item 35 item five,resolution authorizing the Sheriffs Department to enter into a Second Amendment to the existing contract with global tel link for Inmate Telephone Services to extend the Contract Term to may 31, 2015, to reduce the calling rates for inmate telephone calls per fcc regulation, to modify the Commission Paid to the Sheriffs Department, and to modify the additional annual payment to the Sheriffs Department, which will result in an anticipated revenue to the Inmate Welfare Fund of more than 3,000,000 over the fiveyear Contract Term. Earlier we took the item out of order the sheriff came and gave a presentation, and the public defender, jeff made comments on this as well and we notified the members of the public that we would allow Public Comment at this time. And i wanted to open it up to Public Comment at this time. Seeing none, Public Comment is closed. They are all in the hallway enjoying their time here. And i think that again, i want to reiterate that i am really glad to move this item forward. And to the full board with positive recommendation, and definitely, a step in the right direction, and i appreciate the Sheriffs Department and the work on making changes in order to accommodate the inmate and their families. And so, colleagues, or would we like to move this item forward with positive recommendation . So moved. Without objection, this item moves forward with a positive recommendation to the full board. Okay, i think that we are done, except we have one more item, and the city administrator is. Okay. So, madam clerk, could you call item number 33 . Item 33,hearing on the citys implementation of administrative code, chapter 14b, the local Business Enterprise and nondiscrimination in contracting ordinance. Okay, president chiu. Thank you, madam chair and the colleagues for the second hearing this year on the citys implementation on the kham per 14 b and the local Business Enterprise and nondiscrimination and contracting ordinance, this is an ordinance that has been on our books for three decades and our board of supervisors passed chapter 14 b after acknowledging what had been a history of often, passive and active discrimination in our citys contracting policy to make sure that we are fulfilling our citys commitment to the Economic Development for all of our Diverse Communities, over the year it has helped to foster small developments of Small Businesses throughout the city but part of the reason why i had called for this hearing in february was there were a lot of questions about exactly where we were about what data, we were or were not capturing around this and whether we are fully implementing inner City Contracting laws and a real opportunities for the Economic Development and i think members of the community, who are here as well as the City Departments will remember, at that hearing, there were a lot of information that our city i think still needed to get. And there were significant discussions around changes to chapter 14 b. That many members of the community were interested in. Since that time, i want to just report the City Administrators Office working with my office we have kicked off a number of very public workshops throughout the city to gather feedback from our Diverse Communities and how we can improve chapter 14 b. And we have had at this time, two workshops already, one in the bay view in the early part of this month, last night, i joined about a couple dozen Small Businesses in the mission, and we still have in the civic center on june 18 and in the sunset on june 20, a total of four workshops to gather additional feedback and how we move forward and it is our intent working with the citys Administrator Office to hopefully in the coming weeks, roll out some proposals in how we can improve and strengthen chapter 14 b, all that being said, we want to do today was to have a second follow up hearing, on the issues to really build on the last hearing and specifically, we really with the progress that our city has made and reexamining the questions that were not adequately answered in the last hearing. Hopefully with this hearing it will help us better assess our progress in fulfilling our citys antidiscrimination policy and furthering our Economic Development objectives in reviewing the updated data regarding 14 b and revisiting our goals regarding lbe contracting, we were going to kick things off with a presentation from our city administrator, let me ask the representatives from the city office, are you expecting her soon or should we continue on to other presentations . I know that we have a number of departments that we have asked to come here for a brief presentations. So let me see if we have representatives and i know that sandra from the airports, and if you want to come and make some brief comments and what i would say is that the departments who are here represent some of our larger City Departments in this area and, we would love to just get some brief information and data, and since our last hearing, before we go back to the city administrator for her presentation. Okay. Good afternoon. I managed the airport Small Business affairs office. And i am sandra crump and i dont know if you knew that again for the record. On behalf of the airport director, john martin and our commission, we appreciate this opportunity to present our lbe contract awards and business out reach efforts for the past 6 months. I have two slides, and i think you each have it. Okay, thanks. The first slide provides a break down of the sfos contracting activity from july 1, 2013, to december 31, 2013, during this period sfo awarded 15. 5 million for six construction and one professional services contract. Of these 7 contracts, 5 were awarded to certified lbe primes representing 71 percent of the total number of contracts awarded. Of the 15. 5 million dollars, if you can see on the first pie chart, lbe primes received approximately 2. 1 million representing 14 percent of the total dollar amounts. And lbe subs received approximately 13 million, representing 18 percent of the total contract amount. And total, lbes received approximately 32 percent of the contracting dollars. And the second pie chart shows total payments made to lbe or nonlbe which total approximately 1. 5 million and these are tracked by the cmd on site staff and now entered into the citys new lbe utilization tracking system which was effective july 1, 2013. And our second slide shows sfos out reach efforts to the local Small Business communities and coordination efforts with cmd staff and contractors. You want me to read that . And go through it or i dont know how much time . You dont need to. No i was saying the city administrator is now here. Okay. So if you have any questions . I can take them. I dont think that we do. But why dont we hear from the city administrator and then we may have questions after that. Thank you. Appreciate you can here. Miss kelley, thanks for rushing down. Thank you, supervisors. I had the graciously exit out of one of your colleagues office and so thank you for giving me a few minutes to politely leave. And i am the city administrator for the city and county of San Francisco and i am happy to be here today to follow up on the local Business Enterprise hearing that we held in the budget and finance committee on february 5, 2014. At the request of supervisor chiu i am going to update the committee on the initiatives and program cmd is currently working on as we moved towards a revised and modernized lbe enterprise ordinance in the coming months. And supervisors, i want to assure you that we are moving in the right direction. In march, we issued our fiscal year, 2014 quarter one and two, lbe participation reports the reports are posted on cmds website at www. Sfgov. Org cmd and also be releasing the quarter three and four reports in early july. All of the reports are posted on the citys website as they are published. And i want to assure you that we will be as transparent as possible. And in addition to our lbe quarterly reports that are on the internet, the stake holders can access information at sfopen book which has the Payment Information from the city to the prime vendors and additionally cmd can and has given reports on an asneeded basis. For instance, we shared the raw data with the Community Members before we finished our analysis. Supervisors chiu, requested that the specific departments speak drefk directly and i will be turning over the second half of the hearing to the colleagues and you heard from the airport and the department of the public works, the Public Utility Commission and recreation and park who will be reporting on their quarter one and two data along with the specific initiatives they have individually undertaken to create opportunities for our lbes. And i think that the departments have done a great job and i think that you should listen to some of those initiatives that they have created because these have helped to create jobs, and they have also helped with Technical Development initiatives. And as we start drafting legislation, we should really think about Business Development programs to encourage and sustain our small lbes, in this legislation. And also, we need to balance that with some of the legislation, and some of the different requests that we want to make sure that we are not just making a program that is exclusive to a few lbes. The lbe Advisory Committee, in february. The mayor appointed new members to the local Business Enterprise Advisory Committee to advice and make recommendations on development, implementation and monitoring, of the policies and practices related to the lbe program. The 14member body comprises of the city staff and is chaired. And the meetings held on the first thursday of the month at cmd headquarters and the Advisory Committee has reviewed the data and discussed the threshold and interpreted the application of bid discounts for the sba, lbe firms and the members of the committee are truly committed to increasing lbe utilization on the city contracts, and within the confines of the admin code and i appreciate the work and dedication to the lbe program. You have heard about the local Business Enterprise, utilization tracking system or lbe uts and this is an online web, based system developed by the software and the track the lbe compliance on 14 contracts and supervisor chiu will be happy to know that this is one of our enterprise agreements that we got in place that the software is not only used by our Contract Monitoring Division but our economic and Workforce Development system to do the local hire and also our labor standards and Enforcement Division to do the payroll certification. And the system was launched in july to capture data on payments to the lbe and prime and subcontractors. And the lbe uts works by collecting the contracts awarded by the City Department and along with the Payment Information to the city to prime and subcontractors and using the submaition gathered, the cmg generated reports for quarter one and two and as i mentioned was released in march and to date, 23 City Departments have been trained and have active accounts on the lbe uts and cmd, currently offers the training to the city staff and contractor every third and fourth tuesday of each month and so i want to make it clear that this will not take up to five to ten years and we plan to have all of these departments trained by the end of december of this year. And, we are able to do that thanks to the mayors letter that now, the cmd has Contact Information for all City Departments. And as you know, in may, the mayor sent a letter to all City Departments requesting the lbe award and Payment Information outlined in chapter 14 b, and as of today, 37 of the departments have responded or asked for an extension, and onethird of the 37 departments have no contracts to which the lbes subcontracting will apply and most smaller departments have only one or two contracts governed by the lbe ordinance. And with the exception of the departments that you are about to hear from, most of the City Departments have no more than one or two contracts annually and followed in the scope of 14 b. And based on the questions generated by mayor lees letter it is clear that some of the smaller departments do not regularly interact with the lbe ordinance and need the guidance and assistance in the rules and regulations and in the coming weeks we will be working with the City Departments to not only educate them about the process but to verify that all agencies are properly entering into the contracts with the lbe and uts and we are currently and analyzing the data that we received in the department and will issue a report soon. Before we move off of that, could you tell us which departments have not yet provided information or have asked for extensions . Yes, and let me because i dont want to incorrectly say, the wrong department, i am going to have boris come up and give that information. Okay. Good afternoon, supervisors, with the Contract Monitoring Division and a number of departments have asked for an extension and they include the economic and Workforce Development and the Planning Department and the department of Public Health and they have a number of contracts and it is taking a while to get through and the process, and the other departments that have not responded to, and the Asian Art Museum and the children and youth and families and the Health Service system. Okay and i think that i had heard, 37 out of 45, so i thought that i heard that there were eight that had not responded and of the 37 there is some portion that actually had asked for extensions, is that right . Excuse me. There are some that have asked for extensions and four that have not yet replied. Great. What do you expect it all of this data to be completed by . First we want to verify the data, so that is going to take a bit of time and then, we will of course, do the analysis and you know, we want to do it as soon as possible, so boris is working on it every day. Thank you, i know that it is a lot of work and i appreciate your work on this. Okay. So our 14 b out Reach Initiative process, as we worked towards updating and moderizing the 14 b ordinance we have engaged on the lbe contractor to out reach and survey City Departments and vendors on how to improve the lbe program to better support our Small Business community, last month, there were davis and associates began to gather the input and the challenges on the program that will be in a report this summer, the report will provide legislative feedback on how to improve the program. Thank you for supervisor chiu for attending last nights meeting and there are upcoming opportunities to engage in the process and a meeting at the African American cultural in breeds district, june 18th from 5 00 to 7 00 p. M. And a meeting in the sunset at the library on friday june 20th, from 9 30 to 11 30 a. M. And more information on the 14 b can be found at the website. And in conclusion, supervisors in just a few short months, there has been significant lbe up take in compliance and improvements at the departmental level and the Small Businesses and lbe advocates are working collaborativively and productively with my office to insure that this program is robust, transparent and accountable as possible and to have the city Administrator Office i would like to thank, mayor lee and all of the members of the board of supervisors and all of the stake holders in helping to maximize the Economic Opportunity for the small local businesses and also to thank everyone for taking time out of the busy work schedule because this will be a complex and complicated piece of legislation, that in my opinion cannot be rushed or it could have devastating impacts on our small local businesses, for supervisor chius request, the department will present, unless you have any more questions for me. I know that your schedule is busy, there have been a number of proposals that been put out around performing chapter 14 b and one of them have been around a 14 percent over all goal and i am wondering if you could give your perspective on what you think about that goal and do you have data to indicate that is the right goal or too aggressive or not aggressive enough . Well, my initial thoughts as we are working with the Controllers Office right now, with bill and monique and we are going to get together and in order to have an informed decision we need to have the right data and so we are going to work on using their office and their resources, to look at doing an availability analysis, and utilization study and economic threshold and i can tell you that in my entire career in the City Government in 1996 it has always been, we have been based our goals and our mandatory goals based on the contract by contract because we want to make sure that there are lbes that are available in that area, and the goals were set, not just a you know, a high goal, but one that is realistic and achievable and that can be implemented and we want to be sure that we dont, set a goal that excludes some of our mid range lbes or lbes that have just graduated such as our sbas sba, and obes and so we want to make sure that we go into this with the correct data and our eyes wide open. You mentioned that the Controllers Office is starting to work with you . Yes. And so we had our first hearing four months ago and i know that there is a lot of interest in seeing us move this quickly, what is your time frame on when we will be able to get that data . So, we are working throughout the summer on getting as much data as we can. And if we cannot get it, and all of the data that we need, we still are not going to slow down the efforts in moving the legislation forward, but it will help us guide with that legislation, should look like. Okay. Are there other tools that you think that your department or City Departments could use to achieve these goals and i am wondering if they are existing goals that you believe have been effective in increasing lb participation or less effective . We are doing, and in, it seemed to have and in the puc staff and we are looking at in addition and in the contract and compliance, it is very important tool in that we need to stick with that and we should also look at different programs where we are doing the Business Development and that has and it went from my, daytoday interaction with a lot of the lbes and a lot of time, it is, and the Technical Assistance and the development that helps to keep those lbe contractors here sustained in the city and we may start to look at some of the different programs are the federal hub program or the different programs in the different cities, and states that have been helpful, and in maintaining our microlbes and in making and helping them to get the contracts with the cities and helping them sustain, an operation here in San Francisco because we want to grow the program. And so, part of the analysis that we are doing, and that will hopefully be part of the legislation is also looking into these different programs. Okay, and shifting to another topic around oversight, as you are aware there are 14 b requirements around the audits at least three prime contracts each fiscal year of 10 percent of joint ventures could you summarize, whether this has been done and what has been the result and what sort of lessons have you learned from these audits . What i am going to do is, oh, there she is, okay. Maria. Good morning, regarding the audits, we go through annual audits with the Controllers Office. And the emphasis of the audits have been taken a little bit of a interdepartmental emphasis and we would like to work with them to change the dynamics and so we are working with the csa unit. So you are saying that the audits did not happen . Yes, they have been happening every year. Okay, and what have you found through those audits. Different recommendations for one of the recommendations that happened last year was that we should have a tracking system that was not in place and that was implemented in july, with the lba and uts. Okay. And we are in transition right now, and they, and with the recommendations that we were working with the new recommendations. Okay, and the audits of the joint ventures have also happened. I am so sorry. The audits of the joint venture haves also happened . Yes, not at this year, but it has happened in the previous years. What have you found from the audits . From the previous audits one of the changes that happened in the ordinance was that the construction and joint ventures were taken out and because it was found that there were some issues. And so that now does not exist in the ordinance because of the recommendations. Okay. And then to the question that i pose to the city administrator, and so your office has been working closely with the Controllers Office . Yes, it has. Okay, and what is your sense of how long it will take to collect the data to get a sense of whether the market exists for us to let an over all goal and some of the other ideas that have been floating around . And as our city administrator mentioned it is a big undertaking with a lot of data. And she has been working and monica and several of the people working with us to insure that we have the correct data, and we are trying to look and see, because this, and there is just a lot, and a lot of data. Okay. And from 100, to billions. Got you, okay. Thank you. Thank you. Two other categories of questions for miss kelley. As you know in the local hiring world we have recently extended the local hiring to the private Development Project and there is discussion whether the lbe should be expanded and what are your thoughts on that idea . I think that is a great conversation to have and we are already, we already are looking into what and now it has moved to a Redevelopment Area and so that they will have to have lbe goals but we, and we already through vmd and the prior to that hrc have been working with the public, private developments where they do include the lbe goals and so we are support of that. Great. And so could you talk a little bit about enforcement of our existing provisions regarding suppliers, brokers and others, what are your thoughts around that world . So, it, and i think that, you know, as we have transferred and i think that we should definitely continue the enforcement of that brokers are, and when it comes to commodities are you talking about with suppliers and you want to be sure that we have suppliers that do have a warehouse here in the city and i know that it is difficult and that the city does not yield it selfto Warehouse Space but we do not want to be paying markups unnecessarily markups and so, the certification process, they go out and confirm that there say warehouse that is supplied and stacked with the supplies that that vendor is selling. And we can, and we are beefing up the certification process right now. And we will continue along those lines. Okay. Thank you. And i know that we have a number of other Department Representatives here, maybe we can go through them. Why dont we call up from Dpw Stacey Camille . Good afternoon, i am the Division Manager for contracts at public works. So i am going to go over first i have a couple of slides here, the first slide we are going to talk about contracts awarded in 2122 of the past physical year, and if you notice on the left side of the page, of the 34 worded contracts and so the q122 we ordered 34 contracts and it is a combination of construction and professional services. And of those contracts, 26 were lbe primes, and 8 were not lbe primes and you will see the break out of the categories underneath that list, and so of those 26 primes, 13 were minority Business Enterprises and five were other Business Enterprises and seven were womenowned Business Enterprise and that one was