Twere live. Good afternoon, ladies and gentlemen. Welcome back for another session of the land use and transportation committee. My name is malia cohen, chair of this committee and to my right is supervisor scott wiener, the vicechair and to my left is supervisor aaron peskin. Our clerk is victor young, yes. And i also want to recognize Jessie Jim Smith and leo who are televising this meeting on sfgovtv. Mr. Clerk, do you have any announcements for us today . Yes, please science all cell phones and Electronic Devices and completed speaker cards and documents to be completed as part of the file should be submitted to the clerk. Items acted upon will appear on the august 16th, 2016 meeting of the board of supervisors, unless otherwise stated. Thank you. Could you call item 1 . Item no. 1 resolution authorizing the sublease between the city and county of San Francisco, as tenant and sublandlord and the crossroads as subtenant. Of 4124 rentable square feet in the building located at 167 jessie street for an initial term of five years. Thank you. So colleagues, today we have mr. Brian chiu to present on this item. Mr. Chiu, the floor is yours. Thank you, supervisor. Members of the committee, as you may recall back in january of 2015, you approved the city entering into a lease for this space. At a time when we were eagerly looking at opportunities for the city to be able to provide some Additional Space for our nonprofits and as you may seen in todays examiner, were very excited this is one of those opportunities. Back in 2003, the initial landlord for this space, third and Mission Associates entered into agreement with the California Historical society, a 99year lease as part of a restructured deal with what was then sfra and what became the Office Community investment and infrastructure. About ten years later the California Historical society decided that they did not need the entire 15,000 square feet. And was going to return that to the landlord, the ocii commission rightfully was concerned about the loss of nonprofit space. And so as part of that agreement, the landlord agreed to enter into an 87year lease with the city for approximately 4,000 square feet of unimproved space along with that there was a portion of the payment that was going to come to the city, characterized as Community Block grant income, which would allow for the Capital Improvements necessary for that space. So the city agreed to enter into that longterm lease for a dollar a year with the landlord. We then worked with our colleagues at oewd to come up with a process to identify the appropriate nonprofit for that space. We wanted to line it up with the recommendations that came out of working group on nonprofit displacement. And so we issued an rfp in september of 2015. We distributed information about that through the Human Services network and many city departments. 25 different nonprofits indicated interest in utilizing that space. Two different nonprofits completed applications and after review, the city determined that the Youth Organization at the crossroads was the best organization to utilize that space. Since that time, in the fall, at the crossroads has been working to finalizes sublease agreement and we come with you to authorize the lease between the city and at the crossroads and propose to ent near a fiveyear lease with one fiveyear option to extend the term of that sublease. Were very excited about at the crossroads in particular, because of its focus on reaching out to Homeless Youth and young adults. As some of the you may be aware at the crossroads is really a National Leader in services to the Homeless Youth population and they are going to be offering oneonone Case Management services at that site. As many of you may know its becoming increasingly more and more difficult for us to identify spaces for these kinds of direct services, and so were really excited that were able to provide this for at the crossroads. Im here to answer question and were joshua from department of real estate and the executive director of at the crossroads. I would like to ask rob, if you wouldnt mind to come up and make a few comments . Thank you so much. Its incredibly exciting to be here. Two years ago when prada bought the building and let us know they would not be having our lease renewed and we faced an uncertain future terrifying for us and terrifying for our clients. For the last 18 years our organization has been helping young people street San Francisco with the focus on those kids falling out of of services. We dont have the option of moving out of city for cheaper rent. We need to be right where our clients are. When this opportunity presented itself, it was basically like a dream come true. When we were selected we were overwhelmed it was the singlemost important moment in our organizations 18year history. It will allow us to help every year more than a thousand young people in San Francisco get the support that they need to move beyond the streets, and build outstanding lives. A lot of our office use is going to allow us to expand the money that we save with the space will allow us to reinvest in the young people that we work with. I just want to thank a couple of people, josh keen from the department of real estate. I want to thank brian chiu from mohcd and oewd and bill with related the owners of the property, and the nonprofit displacement mitigation fund. But i just want to say thank you for this opportunity. Were really thrilled to have it. Thank you for your presentation. Mr. Chiu, is that it . All right, colleagues, do you have any questions for mr. Chiu . Lets go to Public Comment. Ladies and gentlemen, if you would like to come and speak on item no. 1, please do so. Just by way of reminder you will have two minutes. Will you hear a soft chime indicating that you have 30 seconds remaining. All right, seeing no speakers for item 1, im going close Public Comment at this time. Thank you. [ gavel ]. The matter is in the hands of this committee. I would move that we send this item to the full board with recommendation as a Committee Report. All right. Thank you very much. And without objection, that motion passes unanimously. [ gavel ] mr. Clerk, lets bring up item no. 2. Item no. 2, ordinance amending the administrative code to revise the residential unit conversion ordinance to require hostion platforms to verify that the residential unit is on the city registry prior to accepting a fee for book a shortterm rental transaction and to provide an affidavit of compliance to the city and retain Certain Records authorizing the office of shortterm rentals to issue an administrative subpoena to obtain records provide for civil, administrative and criminal penalties against hosting platforms for violations of their obligation. Supervisor peskin has opening remarks. Thank you, madam chair and supervisor campos who is the lead author of this legislation, which is really a series of technical amendments to the shortterm rental enforcement legislation that supervisor campos authors and coauthored with supervisors mar and avalos and i just wanted to make some remarks about the ordinance. Which is pretty straightforward. Is still to require that hosting platforms do business with lawabiding hosts and ensure that they are not aiding and abetting scofflaws who are further deteriorating our housing stock. Its modest commonsense legislationing and i think its fair for everyone and for lawabiding hosts and fair for San Francisco. Most residents want to give our shortterm rental law a chance to work, but san franciscans wont be played for fools forever if shortterm rental platforms persist in keeping our law unenforceable. After confering with the City Attorney about airbnbs legal amounts that after they filed litigation on the law we passed last month, it is our desire to simultaneously address for this needed regulation or if there real motivation is to continue to flaunt our tourist rental laws with impunity. At the end of the day, the board didnt pass this ordinance to litigate over the scope of federal law. Our intent is to make San Francisco shortterm rental law enforceable and fair. These amendments aim to accomplish exactly that by simply making language more precise by making modest changes in Record Keeping requirements and by tailoring enforcement to work through administrative subpoenas rather than a publication option. I want to thank Carolyn Goosen and she is here from supervisor campos office if you have any questions as is deputy City Attorney jon givner. That is it. Thank you very much. Supervisor peskin, question through the chair, in terms of amendments, i have heard that this will not necessarily apply to all shortterm rental companies because of the way its structured. For example, a company like vrbo, can you comment on this . Because this has been reported to me . Insofar as that it ised at the point of sale is that the argument you are making through the chair . Why dont we defer that to ms. Goosen. Welcome. Carolyn goosen, supervisor campos offices as deputy City Attorney givner wants to add to this, but the way San Francisco defines web [tpaorpt ] one that facilitates advertisement of units, but is involved in any kind of business transaction related to it. So clearly craigslist is one company not included in how we define a web platform, but other companies where there is a business transaction that occurs between the platform, for example the way airbnb does it that company is relevant under this law if there is a business transaction plus the advertising. Supervisor peskin has an answer. If you look at section 41a4 line 4, the definition of booking service, i think it actually would apply to all platforms. A booking service is any reservation and or Payment Service provided by a person or entity that facilitates a shortterm rental transaction between an owner or business entity and a perspective tourist or transient user and for which the person or entity collects a fee in connection with the reservation and Payment Services provided for the shortterm rental transaction. As i understand even these platforms that in essence charge for a listing, i think that they would be covered under that definition, but i will defer that to competent counsel. Deputy City Attorney jon givner. I dont frankly know exactly how vrbo operates. The ordinance as supervisor peskin says would apply to booking services. Which is basically those that collect a fee in connection with reservation or Payment Service. I think ms. Goosen is correct that craigslist does not collect a fee with a booking service. I cant say vrbos business model. Thank you for the clarification, supervisor wiener. I asked the question, because i think its important when regulating shortterm rentals that were regulating as broadly as possible and not regulating some companies and not other companies because different companis have different structures. But they are all facilitiating shortterm rentals and for all the good reasons that we want to regulate them it should apply to all shortterm rentals. This measure that this amended, that i voted for, to try to increase enforcement because we want people to comply with the law, to the extent that the amendments were to contract that and basically exempting out Certain Companies and focusing on other companies; that would be an issue for me. I would be interested in perhaps this is a Committee Report for tomorrow, is that correct . Yes. Perhaps by tomorrow trying to get a better sense for that. Because i know this came up i think 30day waiver and it sort of moved quickly, which i understand why because the litigation, i presume. So i would like to have a clearer answer to that. So maybe we can get deputy City Attorney and supervisor wiener together. Were going to continue to move forward. Ms. Goosen, did you have a presentation prepared . No. Lets go to Public Comment. I have a stack of the cards here. Dale carlson. Jim lazarus, peter quan, ed bell. Dan nu feld. Rodolpho. And karen cansino and if there is anyone who would like to speak, you can do so after the folks that i have called. Thank you. Dale carlson, share better San Francisco. They have traditionally used a subscription model to pay an annual fee to List Properties on their website. They are moving to a model more similar to airbnb and they are too going to be taking a commission, a percentage of every rental. I think its ironic that were here today. Give that airbnb spent 10 million last year telling us how much they hated the idea of neighbors suing neighbors. Here they are suing us. Their hometown neighbors. Portland adopted similar ones on their listings long before San Francisco and airbnb didnt raise a squawk and spent 10 million bragging about the Hotel Tax Revenue that they pay to the city each year and admonished us not to spend it in one place, but now to spend it defending the ordinance that you passed unanimously. They are telling us that they are only in business to help home sharers, legitimate home sharers, simply trying to make ends meet and thrust of the their lawsuit is clearly intended to defend the people violating the law that you passed two years ago, who are not complying with the Registration Requirements and they are using it and they are using the First Amendment to defend their practices. Maybe we should buy some bus shelter ads of the our own . Dear airbnb, the First Amendment does not protect aiding and abetting, love the founding fathers. Thank you very much. Thank you. Next speaker, please. My name is peter quan the cochair of the home shares Democratic Club. Supervisors the reformation of this platform Liability Law that is being considered today attempts to sidestep the legal flaws of the first version, instead of making them liable for posting without a valid registration number, this new iteration instead imposes liability puting aside whether this dodges the bullet regarding federal law. This new version is not achieving the results it seeks. Platforms at home away listed rentals for hosts, a Subscription Service as the previous speaker described it. Many cases the booking itself, the contractual relationship and agreement on dates and rates, these are entirely between the host and guest, home away simply facilitates the transmission of the basic information and payment mechanism. So if platforms at home away dont accept or conclude bookings, they wont be liable under this new version of the law being considered. Hosts who want to avoid legal entanglement will simply migrate away. We think there is a better way ahead. Everybody agrees that the goal is to increase registration rates to maxing maximize the compliant hosts. It is legally flawed as i said and to look at ways that the current Registration System can be improved to remove roadblocks and increase incentives to register. The home share Democratic Club has proposed reforms that we believe is a more productive approach to increasing the registration rates. So we urge the supervisors to consider this approach rather than one that in all likelihood will shift from one platform to another. Thank you. Next speaker. Good day. My name is karen, a registered host that has submitted all required paperwork. Do you recognize me . I have been coming up here for two years and im getting tired of seeing you all. So im hoping that well get this resolved soon. I could have decided not to come, but feel Strong Enough to come to represent registered hosts who cannot be here because of work or family responsibilities. It is quite obvious that each new requirement is an attempt to squash home sharing. Its creating a law by piecemeal the best way. Hosts are not registering; that is a fact no one disputes. They are being unfair to those of us who are. But i can understand their hesitation as the citys reaction. I can envision opponents around the table trying to think up what next can be regulated to discourage home sharing . Our hosts from becoming legal . It is time to give it a rest. Put politics aside, focus on solutions already suggested, applying reservation and giving potential host a tryout period and ferret out abusers. It continues to grow. Citizens defeated prop f, please listen to the majority of San Francisco voters rather than grandstanding politics rather than Civic Responsibility govern your vote. Driving out homeshares will make the city even more only for the wealthy. Thank you. Thank you. Good afternoon. Im jan nu feld in district 8 and im a homesharer and homesharing helps me be able to pay my mortgage and live in the city and place that i want to be. My 18th street merchant neighbors also very much benefit from my guests and many others who come to the area because of the desirability of that territory. It seems clear to me that the proposed amendments would only push bad actors to other platforms. Lets not do that and please read what homesharers have put together and work in that direction, rather than being political as was just mentioned. Thank you. Thank you, next speaker. Jim lazarus, San Francisco chamber of commerce. Last time we were here we raised the very issues that you are trying in a small way with the advice of the City Attorney to correct and legal questions visavis federal law that were challenged in the legislation you approved a few months ago. Getting people registered and having a registration process that works and lets not beat around the bush and come up with 6,7, 8, 9, 10 different amendments. This was cuttingedge legislation three years ago, but where it filed is a process that allowed the average citizen to feel comfortable and understand how to be registered. What the exposures are . How to manage the system . That is what you need to be dealing with. Having multiple pieces of information about your residence. Having to come in in person in an online era just makes no sense. If we want people registered get them registered in a modern 21st century way. That will fix the vast majority of problems. And lastly, that very complicated series of articles in the chronicle yesterday i think the bottomline to that is our housing crisis in San Francisco is not and should not be fought on the back of homesharers in San Francisco. To spend as much time trying to maneuver through zoning changes, density bonuses, some have you have solve, accessory units and some you havent and lets solve those and get on with building San Francisco. Thank you. While the next speaker is coming up, i want to note that the quotes in the piece from the chief economist at zillo to the effect that some of the shortterm rental behavior in San Francisco is exacerbating the housing crisis should not be overlooked. Next speaker. Hi. Ed bell. I live in noe valley and lived in San Francisco for almost 60 years. I am a host and list through airbnb. Last year i told my wife we would have to sell our house in july of this year and leave the city we love and join the hundreds of families that can no longer afford to live in San Francisco. I am happy to tell you my house is not forsale and i have currently no intentions to selling due to the income generated through heir incumbent. Airbnb. I have tried to convince several of my senior friends to become host and almost all afraid to get involved in the computer interaction mandated by the city of San Francisco. Airbnb should be rewarded rather than penalized. Last week i filed my occupancy report the computergenerated report [speaker not understood] and a friend of mine owns a business selling toxic chemicals and doesnt have to report which days his business is own. I share a bed and pillow in my home and why do i have to file these reports when he doesnt . Why is the city changing my requirements . I believe these actions disproportionately affect senior citizens. I hope you keep your senior constituents in mind and vote accordingly. Help people like my wife and i hold on to our homes and stay in the great city of San Francisco. Thank you for letting me speak. Thank you. Next speaker. Hi, im the other cochair of the home sharing group and i want to thank the supervisors who took meetings with us to talk about the improvements. Supervisor peskin did not return our calls unfortunately, but were happy to meet with you still. We produced a 7page report and met with the office of shortterm rentals detailing what we think could make it easier for people to register and maintain registration. In addition, its not just office of shortterm rental, but involves the Tax Collectors Office as with the as Assessors Office and were going to be meeting with the Tax Collectors Office this week. We have a lot of detailed suggestions about improvements. We also think there are a couple of legislative amendments that could make it more inclusive, so that more people could come forth to register. We hold monthly workshops on registration we have tried to share this with the supervisors. We would like to share it with you, too, mr. Peskin and we think that the law could be improved so more people can come forward. Were all about maintaining longterm housing and helping people who really want to stay in San Francisco. I would like to add, because i use vrbo, as well as airbnb and they use a thirdparty for collection. We would be happy to meet with the City Attorneys office to provide more insight on that as well. You were all emailed the report, and unfortunately over the weekend, we didnt realize the process would move to quickly, but you are welcome to call us and invite us for more details. We have a lot of the input on this. Thank you for listening. Thank you. Next speaker. My name is tony robles and i work with seniors and people with disabilities with an Organization Called senior and disability action. Im just taken by all of the talk by the socalled homesharers, and homesharer platforms that ring philanthropy and we have seen the effect on housing stocks and neighborhoods, whole blocks that we have seen evictions and people using these shortterm rentals as a business model. And at the same time, it has had drastic effect only on the health of seniors who are living in stress about whether or not they are going to be able to retain their homes . They live in fear of eviction. And the stresses lead to very negative health impacts. So i think what this really is about is accountability on the part of a multibillion Dollar Corporation that has tried to do anything within its power to thwart regulation of any kind. Were in favor of the amendments and legislation being proposed. Thank you. Next speaker. If anyone else would like to speak, please come up and get in line. Im teresa and im in support of this amendment. Anything that will help make it very clear that if you want to do business in San Francisco as a platform, you are required to follow the rules. You may not advertise illegal activity, if people arent registered that is an illegal activity. Im completely in support of this. Im also excited about this helping planning do what its supposed to do, which is to ensure that a neighborhood is not impacted negatively in terms of the environment, the character of a neighborhood, no rezoning that if you have a picture of 22 units within a block units being used on various websites,. That these platforms in being required to delist if there are too many in the neighborhoods and do something about it. If its really about sharing a home, your home and one room, that doesnt affect our housing, as much as entire units entire buildings being taken off the market. Those people will never register, because they are property they own 8 properties say in scattered throughout the city. They dont live here. They are not living in those buildings. Those people will never register. So its to hold the platforms accountable for the illegal activities that have indeed been go on and people do need to register in person. Its not about 21st century, but to make sure that that person matches the paperwork. Thank you thank you. Next speaker, please. My name is rodolpho and we have one tiny little room we rent out. Were registered. First i would like to comment on the multiplicity of attempts of registering airbnb because of the unregistered hosts and every piece in a units that seems to punish registered hosts and drive away nonregistered hosts. Accomplishing little or nothing while collecting a measly 130,000 for the city and just making people uncomfortable. That and other attempts at regulation also have the obvious taint of single out one platform and encouraging hosts to go to other platforms. This proposed legislation of yours will create a carveout for home away, make it obvious, and also for vrbo and craigslist and did the dpt City Attorney basically say he doesnt know or doesnt necessarily agree with supervisor peskin . How is this legislation how this legislation going to affect home away and vrbo and craigslist, its a carveout. Its been in the making 30, 40 years and not just San Francisco where zoning regulations have slowed or prevented new construction. Dont blame airbnb for the housing shortage. Maybe it exacerbated it slightly or somewhat, but dont believe it as you have for the past two years or month. In trying to finish this off, i would like to comment on the individual who tried to rewrite the First Amendment with his little comment. Thank you, mr. Rodolpho. Please, next speaker. Hi. My name is kathy wu and im a San Francisco voter, and a member of the better housing policy. Our organization is committed to supporting solutions that address the Housing Affordability crisis in San Francisco. Unfortunately we cannot support supervisor campos amendment because it will make things worse. The proposed amendments would Exemption Companies that openly refuse to follow the citys primary residence requirement for shortterm rentals. Rather than working with hosts to make the registration process easier and simple. Supervisor campos has proposed a loophole that will primarily benefit nonresidents, who own second or third homes in San Francisco. This is wrong, and unfair. We could do much better and urge the committee to please oppose these amendments. Thank you. Thank you. Another speaker, come on down. Good afternoon, supervisors and thank you for taking action to put some teeth in the shortterm residential regulation you passed several years ago. These technical fixes blessed by the City Attorney address the companies who are making money illegally in San Francisco by facilitating illegal rentals. They can pay taxes all they want, but if they are facilitating illegal rentals, its illegal. We wouldnt take tax money from drugdealers, from houses of prostitution, and the companis that are claiming to be such civic minded people and yet have hundreds, thousands of units that they are collecting money on, making money on, and its not right. So these fixes are attempting to handle that situation. It may be that there will be one or two other technical fixs that we have to get, but every company that makes money in any way off of an illegal rental in San Francisco should be stopped. Please pass this legislation with recommendations to the board. Thank you for your comments. Is there anyone else that would like to speak on item 2 . None . Okay, Public Comment is closed at there time. [ gavel ] the matter is back into the hands of this committee. Colleagues is there a motion for this item supervisor peskin, do you have a motion . I would like to move this item to the full board as a Committee Report, and given supervisor wieners outstanding question for deputy City Attorney, why went dow with do that without recommendation. Supervisor wiener. Thank you, i was going to recommend that we put it out without recommendation and that makes sense and we can can get answers by tomorrow. This Committee Report goes to full board without recommendation. Thank you. Mr. Clerk the next item is item 3. Item no. 3, resolution aboving the disposition of land located in south one third bounded by howard, spear, folsom and main streets, assessors parcel block no. 3740, lot no. 027 by the office of Community Investment and infrastructure a Successor Agency to the San Francisco Redevelopment Agency to block one property holder l. P. Thank you,. Supervisor kim is the author of this item. But i believe well have a presentation by shane hart from ocii who is here to present. Good to see you again. The floor is yours. Good afternoon, supervisors my name is shane hart and work with ocii as transbay manager and i would like to introduce mr. Campos with our office and Aaron Foxworthy with our office. For the developer, jenny wang and carl shannon. Where is mr. Campos . Oh, in the back. All right. Thank you. The Land Use Committee action is to approve the disposition of ocii owned land within transbay block one to block one property holder l. P. , an affiliate of Tishman Speyer. This slide shows the timing of the transbay redevelopment plan, as well as other area plans that have been approved. Also in bold you can see that in 2003, the former Redevelopment Agency purchased this portion of block one site for Affordable Housing. In april of this year there was a redevelopment plan amendment that came before the board, and was approved. That plan amendment increased the tower height for block one from 300 to 400. In june of this year, the ocii Commission Approved the plan and this shows the overall Transit Center district plan. As i mentioned to you before, ab 812 and redevelopment plan require that 35 of all the units within transbay, within zones one and two be affordable. Ocii has land use jurisdiction over the formerly stateowned parcels, as well as this parcel and you can see that in the lower section of this map that is on the slide. The Planning Department has land use jurisdiction for zone 2. Transbay block 1 is located on folsom street, between main and spear streets. This slide gives you an idea of the Development Program that has been approved. This slide shows the parcelization for block 1. The top portion is the ociiowned parcel which consists of about 34,000 square feet. The lower parcels are the ones that are owned by tishman and those are about 20,000 square feet in total. The project summary is a mixed income homeownership project consisting of 391 units. 40 of the project is affordable, 156 units and theyll be available for households earning between 80120 of ami. The affordable units are dispersed in the first 26 floors of the tower and in the podium and provide protections for owners, there has been included a certain Homeowners Association for the bmr owners, as well as the developer has put up 225,000 dollars for what we call a homeowner associations dues Assistance Fund that could be used by the bmr owners in case there should be special assessments or large dues increases. 156 units are affordable as i said. 80 of those units are in the tower and townhomes, which are all funded by the developer and 76 units are in the podium buildings. And there is a subsidy of 19,180,000 that is being provided by ocii for the podium and remaining costs are funded by the developer. Regarding the fair market value for the ocii parcel, 3343 report concludes that based on the appraisal, and the analysis that was done by kma, 19. 2 million that ocii is receiving for its land is fair market value. And that ocii is receiving an additional 31 million of consideration beyond fair market value based on the current deal terms negotiated with the developer. This is a rendering of the block one tower and podium. This is also a view from the bay bridge. Last friday the ocii executive director and i met with supervisor peskin, and he was concerned about the effect that the construction defect litigation could have on bmr homeowner as the Association Dues and the construction defect litigation is common and as a result we proposed to allow bmr homeowners to access 225,000 bmr homeowner dues Assistance Fund for construction defect litigation costs, and to include in the project ccrs a requirement that the marketrate hoa pay for the cost of construction defect litigation without differentiating between marketrate and bmr units in any settlements. Proposed changes to the resolution are on page 6, lines 1220. And on page 7, lines 2022. The developer has reviewed and agrees with these changes. With that, thank you, and im happy to answer any questions. Thank you, mr. Hart. All right. Colleagues, i think were going to go to Public Comment. Appreciate your presentation. Madam chair, i would like to move those amendments on page 6 and page 7. Okay. I thought we could do Public Comment and talk indepth a little bit about these amendments. We have a stack here. Lets see who is still here . Laura thompson, are you here still . Rudy corpus . I think i saw charlie, danny campbell. Tony rodriguez. Joel coppell. Adrianne simi. All right. Why dont you just all come on down and welcome back, boys. Marcus im sorry, marcus, i cant read your last name. Go ahead, rudy. Welcome. Good afternoon, supervisors. I am here representing united players in support of the project. United players has been an organization that has been serving the city of San Francisco for the last 22 years and 8 months. Were fortunate that were located in a neighborhood where a development is being built. What has been in district 6 with the organization that we have built a great relationship with the project, with the developers, Tishman Speyer who has been helping and assisting us tremendously. Not only just coming to our center, and meeting the kids, but also donating their time with people with books, and mentorships and also helping us support our organization. So we can continue to run and thrive. So im in here in full support of the project and here with people from the community. Im born and raised in district 6, still live there. My kids went to school there and i just want to say this is the type of project that we need in order for people in our neighborhood to survive. We are probably groundzero of gentrification and displacement, but with projects like this help us to stay in the communitis that were born and raised and the amis that were part of helping out is a winwin situation for us. So thank you. Thank you. Charlie. Good afternoon, chair cohen, supervisors wiener and peskin. My name is charlie, the District Representative for the operating engineers in San Francisco and san mateo counties and associated with the Building Trade Council and Labor Councils in both counties. As a representative of labor, i want to thank you all for your Civic Service and hard work on behalf of the citizens of San Francisco. With regard to the agenda item i want to say that tishman he or speyer has been a bluechip partner and we are looking forward to working with them on this exciting project and they have been proactive many their efforts to strike the right balance of retaining neighborhood values and providing units for a wide range of incomes. I want to speak in support of the project. Thank you. Thank you. Next speaker, please. Good afternoon, my name is marcus and im here to show my support for block one, and for more Affordable Housing here in San Francisco. A yearandahalf ago my wife landed her dream job as a flight attendant, as a condition of her employment, we had to relocate to boston. This was a real tough decision to make, to pack up everything that we owned, to leave our rentcontrolled unit in the mission, and to say goodbye to our home. Well, as luck would have it and after a cold boston winter a position became available for my wife at sfo. We were moving back to San Francisco. But now the apartment costs 40 more than we were paying before we left. This exponential rise in the cost of housing made our return to San Francisco seem almost impossible. But thanks to the Mayors Office, a few forwardthinking developers, and the voters of San Francisco, we found a once inalifetime opportunity to actually own a home here in the city. 1400 mission, below market rate had a handful of units left that we qualified for. Although we havent moved in just yet this bmr program has given us hope, hope that we can have a permanent home in the city. Hope that we can raise a family here without worrying how were going to make rent. Hope for the future. I encourage you to share this hope with other working families by approving block one and more Affordable Housing here in the greatest city in the world. Thank you. Thank you. Next speaker, please. Good afternoon, supervisors. Danny campbell, sheet Metal Workers local 104. I, too on behalf of the membership of the sheet Metal Workers put our support behind this project. Its refreshing to see this project building the type of housing that the city has not been building enough of lately and that is for middleincome families. Such as teachers, librarians, firefighters and construction workers. Like i said, its a pleasure to see that, tishman has and continues to be a strong industry partner with the San Francisco building and Construction Trades Council and ask you to move this disposition agreement forward today. Thank you. Next speaker. Good afternoon, supervisors. My name is Tony Rodriguez and im with local 43, fire sprinkler union and were here in support of the project and what charlie and danny said about tishman always providing wellpaying union jobs and benefits is true and i dont really need to go into that. The exciting part is the 156 units. I have mentioned many times that i have three daughters. One is say a nurse and one is a teacher and the other one is going to school to become a nurse. They live at home and cant afford to buy a house. Our construction workers cant afford to buy homes in the city and projects of this nature would help to alleviate the thing of people having to move out. Yesterday i was in sacramento and or friday we went to sacrament and spent the weekend and its amazing the number of people that i know that live in sacramento and work in San Francisco and only do that out of necessity, because they cant afford the rents and to buy a house here. I ask you to help by approving this project. Thank you. Thank you. Good afternoon, supervisors. Chair cohen, joel coppell for electrical workers. Once they need a home to house their kids and their family, sometimes 1520 a year of our members are leaving the city. That is why projects like this are of the utmost importance. Tishman speyer has been more than a responsible developer here in San Francisco with the lumina and infinity towers and south of market and 160 folsom is going to be a great project also because of its proximity to the Transit Center and looking forward to building this project and hope you approve the disposition today. Thank you. Thank you, joel. Next speaker, please. Good afternoon, supervisors. Tom oconnor, president of the San Francisco firefighters. I, too, am here to support this project. This project not only represents a wonderful opportunity for our members to live in San Francisco, but it also allows tishman has helped to us explain the complicated process of applying for these unitss and enabling many of our members to stay in San Francisco and live and walk to work. Quite often when we talk about keeping Public Safety in San Francisco, people they exaggerate and talk about the big one, the earthquake or a Natural Disaster, but what is more important to Public Safety in San Francisco, when a personal Natural Disaster happens. If your kid is hit by a car or your mother falls and breaks her hip, you want your Public Safety partners here. This project and Tishman Speyer are helping us to do that. We speak in support of this project and thank you very much. Thank you. Next speaker. Good afternoon, madam chair and supervisors. My name is adrian with carpenters local 22. Not much i can add that hasnt been said already, but carpenters local 22 does fully support this project and looking forward to working with the long time partner of Tishman Speyer and i think most of all what hits home for me, this will put apprentices to work. Young carpenters, male and female who live in San Francisco, who have a nice job with benefits and in todays world, that is what is needed. Thank you. Thank you. Is there anyone else who would like to speak on this item . Public comment is closed. Thank you, folks. [ gavel ] now the matter is in the hands of this body and supervisor peskin has an amendment he will walk us through. Thank you, madam chair and i have every hope there is no construction defects in the project and no litigation, i think our primary policy concern and the reason that the developer has agreed to a 225,000 contribution for the below market rate 156 units is because we want to make sure as condo dues rise, people like this gentleman will be able to continue to pay those condo dues. That is the fundamental reason for the 225,000 fund. But it is not uncommon, as mr. Hart said, in Residential Condominium Development to have construction defect and a little bit of litigation after these projects are built. So i wanted to make sure that no. 1 insofar as there are going to be under the covenance, conditions and restrictions that the developer has agreed to, three different homeowner associations. A bmr homeowner association, marketrate and master hoa that would require a super majority vote in order to raise annual condominium dues or special assessments, above certain percentages 10 and 5 . I wanted to make sure that we actually were thoughtful about litigation, if it should occur . So i wanted to make sure that the bmr Condo Association was not disadvantaged in that unlikely, but possible, event. So to that end, one, in the second paragraph on page 6, we made it clear that the 225,000 could be used for the affordable unit hoa cost including litigation costs, if she should ever arise. And furthermore, a provision that says that if the marketrate hoa would like to pay for all of the litigation costs, they can do so provided that any settlement would be shared equitably between the marketrate and bmr hoas subject to the relevant governing laws of the state of california and the bureau of real estate. Those are set forth on page 6. I want to say mr. Shannon, i know its never fun to put money into a wellmeaning goodspirited fund that could be used against the developer and hopefully that wont happen, but i want to foresee the unforeseeable here and thank you for agreeing to those and the developer has agreed to those in the sub4 on line 20 to 22 on page 7. Im happy to answer any questions and i want to thank ocii and their director, ms. Boe and mr. Hart for helping craft the language around the suggestions that i made on friday. Thank you for the amendments. Lets go ahead and take a motion to accept someone could make a motion to accept these amendment s. So moved. Thank you. Motion to accept the amendments, moved and without objection passes unanimously. [ gavel ] thank you, on the overall piece of legislation, i would like to make the motion to send as amended ai as a Committee Report with recommendation for hearing tomorrow, july 26th. The motion has been made and without objection this motion passed as a Committee Report with recommendation. Thank you. [ gavel ] mr. Clerk, what do we have next . That completes the agenda for today . Excuse me . That completes the agenda. Thank you, this meet is adjourned. Thank you. [ gavel ] one of the major t was asked to do is Water System Improvement Program and one thing i looked at is about the 4. 8 billion dollars wurthd of work and a lot of the work was regional. We looked at how can we make sure that we provide opportunities for san franciscans and people in the region and so we looked at ways we can expand our local San Francisco lb program. So, we thought about it and worked with general manager at the time to form an advizry committee to talk about how to include local businesses in the region. I was on the First Committee back about 10 years ago and the job changed over time. In the beginning, we just wanted people to know about it. We wanted to attract contractors to come into the system which is a bidding system and bid on some of these projects. Our second job was to help the sfpuc to try to make themselves more user frndly. I like that they go out of their way, have contractors trying to teach and outreach to Small Businesses and lots of creative ways. Help the community as well. There is so much infrastructure going on and repair, new construction that i think is helping to get construction back on its feet. My faiv rlt part of the committee has been that we have played a opportunity for many Small Businesses. [inaudible] Women Owned Business to come in and [inaudible] sfpuc. It is a great opportunity because some are so small they have been able to grow their companies and move up and bid other projects with the sfpuc. Everyone i was talking about with any contractor [inaudible] and super markets and things like that and i realize the transition was on the sfpuc. He got that first job and knows about the paperwork qu schedule and still works on this type of job, but he works with general contractors that also did other things. Pretty soon it is like he did that one and that one. It completely changed his business. My name is nancy [inaudible] the Office Manager and bid coordinator for [inaudible] construction. Worked on 10 plus puc, lbe contracts. Today we are doing Site Maintenance on the [inaudible] chr site and currently the gentlemen behind me are working on every moving and basic specs of plants. In order to be success you need to work hard, bid low and keep a look at the sfpuc website for future bidding opportunity. This is a Successful Program because it provides opportunities to regional communities that might not have opportunities to work for large scale projects. The sfpuc is a fortunate agency we have a lot of Capital Program that span over 7 counties who also to see how some businesses like [inaudible] and bio mass started as small micro businesses grow and expand and stay in the program and work on several projects before they graduate from the program. That is what warms my heart. My name is college willkerson, the principle for bio mass. Bio mass has been in business since 2006. 3 partners. Small businesses fill a niche but apply and being a part of the program helped us be more visible and show the city and county of San Francisco we can also perform services. This program had tremendous impact to the region. In fact, the time we rolled the program out was during the recession. This has h a major positive impact and certified over 150 firms in the rejen and collectively awarded 50 million in contracts, and because of the lbe certification it open many opportunities to work with sfpuc. And, i significantly helped the business. It is one of the major contributors to our success. The office of controllers Whistle Blower Program is how City Employees and recipient sound the alarm an fraud address wait in City Government charitable complaints results in investigation that improves the efficiency of City Government that. You can below the what if anything, by assess though the club Program Website arrest call 4147 or 311 and stating you wishing to file and complaint point Controllers Office the Charitable Program also accepts complaints by email or 0 folk you can file a complaint or provide Contact Information seen by whistle blower investigates some examples of issues to be recorded to the Whistle Blower Program face of misuse of City Government money equipment supplies or materials exposure activities by city clez deficiencies the quality and delivery of City Government Services Waste and inefficient government practices when you submit a complaint to the charitable online complaint form youll receive a unique tracking number that inturgz to detector or determine in investigators need Additional Information by law the City Employee that provide information to the Whistle Blower Program are protected and an employer may not retaliate against an employee that is a whistle blower any employee that retaliates against another that employee is subjected up to including submittal employees that retaliate will personal be liable please visit the sf ethics. Org and information on reporting retaliation that when fraud is loudly to continue it jeopardizes the level of service that City Government can provide in you hear or see any dishelicopter behavior boy an employee please report it to say Whistle Blower Program more information and the whistle blower protections please seek www. clapping. in 2013 San Francisco legislators newsom agreed to allow the reciprocate of our soft Story Buildings those building house one and 20 thousand resident a program of that collect requires extensive outreach and this continuation of that process who is here and bill graham the perfect venue so in 2014 we have the first earthquake retrofit a huge success were repeating this model what weve done it put together venues that are time professionals and contractor are financing institutions a other services that help people comply with the retrofit and as you can see the thousands of members of the public their assessing over one hundred vendors to comply with the ordinance or make improvements on their property i came to get specification information and puck h picking up information if you dont know what twaur doing i take it overwhelming. Were pleased a Critical Mass of people are keying into knowing their relents and understanding what had are the next steps to take and theyre figuring out who to talk to not only the contractor by the mustards and the architect and the Structural Engineers and getting the full picture of what options are necessary and being proacti proactive. So im very pleased to see the soft Story Buildings 99. 9 percent complies the highest of the program of this scale of the history a citywide effort high Blood Pressure in every stretch of San Francisco to understand real risks associated with earthquake and those are universally agreed on. At some point you need to gather information ill be talking to another engineer to come out and take a look at it and basically get a Second Opinion im for second and third opinions it is inspiring to see all the Property Owners that want to do the right thing and for proactively figuring out what the solutions to get them that. What is amazing to me here we are over two years of first retrofit fair and at the time we are rh2 out to contractors to help us and reaching it out to Design Professionals that soft Story Buildings is in any and people understanding how to comply now it is different an industry that springs up as a result of the their professed and gotten the costs down with lower Financing Options and these are defined and now the gene progression and have the buildings are buildings and the compliance we understand the 2020 one and 20 thousand San Franciscos 15 messenger of our population will live in a retrofit building those people buildings or lives in buildings with 5 or more residential building is soft story and wood frame and built before 1978 that house that one and 20 thousand san franciscans. San francisco is being the leader in getting in done and as you may know los angeles passed their retrofit law two months ago at the sort of taken San Franciscos lead on the one and tenth anniversary as the residents San Francisco this is a road map to the city and going to give us us plan are these to keep folks here on a disaster and steps to build a resident waterfront by 2020. This involves more than one and 80 individuals and over 60 nonprofits and other companies this is a huge plan and what are the challenges we realize that people are concerned about climatic change, Sea Level Rise and not only the affiliated hazards but things hike youre our amp infrastructure and consumed by social and other things we see this in society everyday and how we try to mitigate those are ultimately a direct result how resident we are after earthquake other issue out of the strategy of the concept after a major earthquake of keeping 95 percent of population here in San Francisco thats the single best thing to help a equitable recovery to keep people here keep people back to work and kids in school and a residents of normal after a disaster. Alliance energy in our partner undertook comprehensive bid process we interviewed a halfdozen of folks who wanted to have a part of our soft Story Buildings are ordinance so Alliance Energy project programming is a clean assess energy a special financing that is done using the taxed authority of local multiples and one of the interesting features the loan is tied to the property not the vital if an individual didnt have good credit but it is another option for people not able to comply to find another avenue the assessment is actually places on the property and the builds for in that come literally a line item on the tax bill thats how you pay off the segment and tax. 20 or thirty years is all paid up front there are advantages your property tax well it is important to give people on option and many private banks that provide loans over a are shorter term we wanted to create a longer pay back term. I think the next step for Property Owners after at the create themselves to take the plunge and quit the working downey done and have works of work done right of the right rest of the Property Owners can understand this process across the city. We need to do it. It is safety you know thats the bottom line safety. Earthquake safety a everybodys responsibility that is providing the resources that people need to get done if you want to know more of the resources as a san franciscan please visit the this is regular meeting och the commission on Community Investment and infrastructure. Successor Agency Commission to San Francisco Redevelopment Agency for tuesday july 19, 2016. Welcome members the public. Madam secretary please call the first item. Thank you, the first order of business is item one, roll call. Please responds when i call your name. Commissioner pimentel, present. Commissioner bustos, here. Commissioner singh, here. Vice chair mondejar, here. Madam chair rosales, here. Whether members of the commission are present. The next order of business is item 2, announcements. A the next regularly scheduled meeting will be held august 2, 2016 at 1 p. M. At city hall room 416. Announcements of prohibition of sounds producing Electronic Devices during the meeting. Please be advised that the ringing of and use of cell phones, pagers and similar soundproducing Electronic Devices are prohibited at this meeting. Please be advised that the chair may order the removal from the meeting room of any person responsible for the ringing of or use of a cell phone, pager, or other similar soundproducing electronic device. C, announcement of time allotment for Public Comment. Please be advised a member of the public has up to three minutes to make a pertinent Public Comments on each agenda item unless the Commission Adopts a shorter period on any item. It is strongly recommended that members of the public who wish to address the commission should fill out a speaker card and submit the completed card to the commission secretary. The next order of business is item 3 report on action taken at previous closed session meeting if any. There are no reportable business. Ite 784, matters of unfinished business. There are no matters of unfinished business. The next order of business is item 5, matters of new business consisting on consent and regular agenda. First Consent Agenda. Approval of the minutes of june 21, 2016. B, authorizing a Second Amendment to the master lease with the u. S. Department of the navy for parcel b, to extend the term from july 1, 2016 to june 30, 2017 or upon the conveyance of parcel b to the office of Community Investment and infrastructure, whichever is sooner; Hunters Point Shipyard Redevelopment project area. Action, resolution number 312016. Madam chair. Thank you. Do we have speaker cards on Consent Agenda items . I do not have any for consent. Thank you. Commissioners, we have the approval of the minutes of june 21, 2016 and the Second Amendment to the master lease with u. S. Department of navy. Do you have comments . Questions . Motion . Commissioner singh moved and bustos seconded. Please call the roll. Please announce your slote when i call your name. Commissioner pimentel, yes. Commissioner bustos, yes. Commissioner singh, yes. Vice chair mondejar, yes. Madam chair rosales, yes. I have 5 ayes the Consent Agenda is adopted the next item is 5 b, authorizing a personal Service Contract with mjf and Associates Consulting sole propietership to manage ocii Hunters Point shipyard and provide outreach and support service to the mayorss Hunters Point shipyard citizen advisory sxhity, Legacy Foundation and ocii for Contract Term of july 1, 2016 to june 30, 2019 and total contract anount of 997,906. 77 Hunters Point Shipyard Redevelopment project area, discussion and action resolution number 322016. Madam director. Thank you madam secretary. Good afternoon to the commissioners and good afternoon to the members of the mublic. Thank you for joining us. As typical there are a number of administrative matters pursuant to purchase policy. The former Redevelopment Agency and now the commission is continuing the practice of establishing a important physical presence on the shipyard to provide administrative and support Services Given to bayview and southeast and the city so this particular contract is before for review and consideration. All cost associated with this contract are reimburseed by the shipyard master developer. I like to have [inaudible] who is project manager to present the item. Good afternoon. My name is [inaudible] assistant project manager at the ocii Hunters Point Shipyard Area and coming today to seek approval for personal Services Contract for the ocii Shipyard Site office with mjm and Associates Consulting. Quick presentation overview. I will review the frauject area and back pp ground for the site office, the contract solicitation process we went to am to a agreement, proprosed contract we seek to have approved and next steps. In this slide youll see a overview of the Hunters Point shipyard and candle stick project area the consultant will service and probably familiar to all you but this is just a snapshot of candle stick and Hunters Point Shipyard Area. A bit of background about the ocii site office, 1991 u. S. Grass authorizes the navy to transfer the shipyard in phases afterEnvironmental Remediation to sfra which is now ocii. 1995, the Hunters Point shipyard cac formed by to the Mayors Office to advise sfra on redevelopment of the shipyard. And in 1996, sfra now ocii began operations of the Shipyard Site office. More of a backgrounds for the site office. The Shipyard Site office provides Administrative Services and support to cac Legacy Foundation which makes recommendations to ocii commission on the use of phase 1 and phase 2 Community Benefits funs. Dissiminate information to the public regarding the shipyard and candsal stick poichbt area. Provide property Management Services and outreach to the community. The slide details timeline of the rfp process and on february 17, 2016 ocii issued a rfp for the site office Management Services. March 2 ocii staff held a conferenceope toon the public all and walked through the rfp and invited questions from potential proposers. March 21, was a date the proposals were actually due. April 11, a panel interviewed and ranked proposals received. A total of 3 received. April through may 2016 we held contract negotiations. June 16, 2016 we went before the business and employment subcommittee of the cac for review. June 27, twnt 16 will before executive subcommittee. Prior to going to full cac on july 11, we incorporated feedback we received at the previous two meetings into the contract before seeking approval to move forward from the full cac and it was approved july 11, 2016 we should move forward to seek ocii commission approval. Here a brief discrepgz of the scope of services of the requirements that were to be demonstrated in the rfp response and the first was to be able to provide admin straistive support services and that isstuffing and operating the site office, monday through friday from 8 a. M. To 5 p. M. Sufficient staff to be there to staff the office during those office hours. As well as staffing and supporting the cac or Citizens Advisory Committee for legacy meetings held in the evening. Demonstrate they can provide the Outreach Service squz project Area Services which includes badges and reservation system. And additional reporting requirements also detailed in the rfp. Minimum qualifications quickly were a minimum of 3 years of recent experience. Demonstrated ability to work effectively with diverse populations. Demonstrated familiar arty with shipyard and candle stick point area and bayview Hunters Point chunty. Experience work wg Public Sector clients. Knowledge of sth brown act, public records act and applicable Public Agency laws as well as demonstrated ability and work plan to perforum the work scope. This details the proposal evaluation process from the proposals being reviewed, the interviews conducted, the panelist scoring the proposers, the compliance reviewing the fees proposed; putting together a matrix of the score squz finally, ranking the proposers. In this process ocii received 3 proposals after the review and written proposals and interviews the panel recommended in the ord er listed below mjf associates and consulting rsh jbr partners andiolaundas administration and traffic control. In line with our procedures, we negotiated with the top rank proposer and came to an agreement and the contractor mjf and Associates Consulting and outreach subcontractor jbr partners a Contract Term goes from july 1, 2016 to june 30, 2019, 3 Year Contract with a total budget of 997,906. 77. You will also see a year by year break down of the proposed contract. Here you see a break down of the kope of services to be provided by mjf and associates, the top rank proposer which will provide site Office Management service including administrative service, staffing public meetings, the shipyard badging program and site Office Community [inaudible] as well as managing the subcontractor jbr partners who will provide out reach services. Today im here seeking approval of the commission to execute the proposed site Office Contract that is presented. We also just to let you know we have both of the contractors present today, mjf Associates Consulting as well as jbr partners. Thank you. We will need to take Public Comment first before we entertain questions. I do, mr. Oscar james, ace washington and pastor bell. Please come forward. Good afternoon commissioners. It is a pleasure to be here once again to see your bright and happy faces. Im oscar james a native of bayview Hunters Point and served on [inaudible] task force for the close of the shipyard under him and also under honorable phil burton who was the person responsible for having Community Input in the Hunters Point shipyard. One of our concerns on the task force is make sure the community have participation in all aspects of the Hunters Point shipyard during the closures as far as employment, overseeing what is best sfr the community. Mjf have done to me a terrific job. I would really appreciate you guys approving their contract. Anything that the Community Ask or want to know about what is happening in Hunters Point shipyard the office is more than glad to help us, to show eech and every person in our community or the city what is happening in Hunters Point shipyard. We have trust in them as a community residents. I served in many capacities in bayview Hunters Point and have full trust in this particular company, these particular companies. So i support them 100 percent and hope you guys will pass it. This off the record, i want to thank the warriors winning their suit and coming back to San Francisco. Thank you very much. Thank you. Mr. Washington. Good evening commissioners, ace washington, ace on the case. Gives me great honor always to come speak before and people and give me great honor to support a project. Im normally here to tell my feelings on it but have the highest respect for the job they have been doing. And even the legacy coming from [inaudible] they have done a outstanding job and i am a person i love information and quh i call their office and get the information and they have been very, how can you put it . I would strongly suggest you support this. Probably give another 500,000 because they need it. The thing i say for the record, dont repeat what they did to fillmore street. I support the project. Thank you. Good afternoon commissioners. Pastor bell, excuse my voice. Recently i had surgery and not recovering as well as i thought i should. Sound a little like mohammed ali. Im in support of mjf as my previous predecessors have said, they have done an outstanding job and im so glad that they are being retained because of the symbiotic relationship we had with them over the years. The community is supporting them and they are always available to give information, dissiminate information and the Community Gives us that feedback on them. It was to the point i say why do we have another rfp. They are doing such a tremendous job. Im here to offer my support and let you know im a san franciscan and grew up in the old fillmore, relocated to Hunters Point, went away to college and came back and now am a resident of the city that im so happy to be here and im just excited about what is being done at the shipyard. I think it is a tremendous brownie point for us in the city that the community was not left out in this whole transition. So again, i want to offer my support and if there is anything i can do to support you and them im more than willing to do it. Thank you very much. Thank you. Any other Public Comment . Thank you for those comments. Commissioners, anyone have a comment or question . Commissioner singh . I think they are experienced people and want to move this. Okay, any questions . Moved by commissioner singh and second by commissioner bustos. Comments or questions . Looks to me like the process was well done and very transapparent so happy to see that. Happy to support the motion. Please call the roll. Announce your vote when i call your name. Commissioner pimentel, yes. Commissioner bustos, yes. Commissioner singh, yes. Vice chair mondejar, yes and continue the good work. Madam chair rosales, yes. I have 5 ayes the contract is approved. Thank you. Please call the next item. The next item is 5 d, authrising a prnl Service Contract with Langan Treadwell and rollo a new Jersey Corporation for environmental Technical Support services for the Environmental Remediation of Hunters Point shipyard for Contract Term of august 1, 2016 to july 31, 2019 with two one year offices to extend for total contract amount not to exceed 1 mil 1,900,000, Hunters Point Shipyard Redevelopment area. Madam director. Thank you madam screert. Commissioners this is another important administrative matter for the Hunters Point shipyard. As you know, the land is transferred to ocii once the navy and the federal regulators certified it is clean and safe and rend ready for intended use before construction during construction and post construction. A critical step to that transfer is having the right environmental Technical Support services and this contract before you is for just that and mrs. [inaudible] senior project manager for Hunters Point shipyard candle stick point will walk through the contract and compliance. Thank you and good afternoon chair rosales and commissioners. [inaudible] project manager fl personal Services Contract with langan, treadwell and rollo for environmental technical Consultant Services on the ship yards. Presentation overview, very quickly. Ill provide background on the hinters Point Shipyard Environmental Remediation and provide a overview of the environmental Technical Support services proposed in the contract including scopef work and budget and this is a sole source contract so reviewing the Sole Source Justification and providing overview of the equal Employment Opportunities that langan has demonstrated in the past and moving forward if the contract is approved and finally, reviewing the staff recommendations for this contract. Quick overview of just the parties involved in the Environmental Remediation activities at the shipyard. Those include u. S. Department of navy of course who is responsible for the Environmental Remediation activities and their work is overseen by regulators. The lead agency overseeing is u. S. Environmental Protection Agency or u. S. Epa and they are supported in the decisions they make by California Department of toxic substances control as well as Regional Water Quality Control board. Ocii Environmental Team also engages in the oversight of Environmental Remediation and includes ocii staff and staff from San Francisco kapartment of Public Health and City Attorney. Personal Service Contract provides serves to the ocii team. The last party is our development partner, Cp Development and affiliate of lunar. Brief history and background of the shipyard and this Environmental Remediation activity. 1974, the u. S. Navy closed operations of the shipyard and in 1989 the congress placed the shipyard on the National Priorities list under the comprehensive environmental respaunsonse act. The navy and regulatory eejss in 1992 entered into a federal facilities agreement which permitted compleen up work to begin. 1999 the city through department of public works began contract with Langan Treadwell and rollo. In 2000 the Redevelopment Agency through a Letter Agreement with department of public works began our relationship with langan and in 2003 the Redevelopment Agency contracted directly with them for these services. 2004, the navy and Redevelopment Agency is assumed by ocii entered into a conveyance pugrument which permits for transfer of the shipyard as the property is cleaned. That year parcel a which is Phase One Development in the shipyard hill top and hill side was transferred to Redevelopment Agency and Development Work is well under way. It took over 10 years but finally did it with the second transfer of parcels uc 1, uc 2 and d 2. It is anticipated the transfer will start happening more frequently and we are anticipating the remaining parcels will be transferred in the next 5 years. Quick remind er of the development proposed. The phase two of development will have approximately 4200 homes as well as over 3 million square feet of research and development and commercial space along with the preservation of the Artist Community that is currently there. The shipyard also has the navy parcels overlaid on to it. The parcels completed are a, a 1, d 2, uc 1 and 2. These are findsings of suitability to transfer and that is what we anticipate getting for the parcels in the next 5 years. The next tranlzfer we anticipate will come to the Commission Spring of next year and will include b 1, g and ir 718 which are Large Development blocks and allow development to move forward in earnest on the shipyard. A quick if there is a thing of the process. The clean up of the property is governed by documents and agreements relateic to each parcel. The federal facilities agreement and conveyance agreements are agreements between the navy and regulators. The permit for the remediation and conveyance of the property through the circle process. These decision documents are created for each document and it isnt as straight forward a process as i lay out here but the recordf decision is the document that selects the environmental remedy for each parcel and have the record of decision, which is how the remedy will be implemented. It includes lands use control for the site which will be transferred to successive owners including ocii. Examples include maintenance and inspection the durerable cover remedy, growing fruits and vegetables on the site and prohibition of using grounds water. The racker is prepared by the navy and reviewed by the regulators and outlines the work that has been performed on the site and once this is reviewed and approved and regulators and navy confirm all the prefranzfer operations occurred the fineings of pseudoability to transfer happens. The navy opens the conveyance oenough property. We accept the property with restrictions on it post transfer including restrict use of property which carries the lands use restrictions from the what we call the land use control remedial design down to future and successive Property Owners. We also have the Risk Management plan which i identified activities that can be performed post transfer without getting approval from the regulatory agencies, however, for other Development Activities the navy and regulators have to approve restricted activities work plan. There is lots of actirfbties before and after the Environmental Remediation and continued use of the site. This is a more graphic way of representing the process just to show how both community is engaged in this process and it is not as linear as my previous slide suggests. There is always opportunity for new information to come forward about the environmental contaminants on the site or there could be new clean up goals set for the site so you can always go back to a previous stage in the process. And one piece the process that is really important, but wasnt noted on the other slide is post transfer we have a continued oversight at the local level through article 31. This is administered by San Francisco department of Public Health and post transfer requires dbi consult and receive approval before dbi will issue a building permit. Dph role is monitor and enforce compliance with any restricted activities to insure development is occurring consistent with the remediation. So, moving to what the item in front of you today is the personal Service Contract for environmental Technical Support services and this scope of work does support the ocii Environmental Team. The scope of work aids with the process i just out 37 lined through review and evaluation of cercla decision documents and clean up activities. The consultant will advise on post transfer obligations. Really important is consultants ability to provide Public Outreach through presenting to Community Groups and addressing concerns and also prepare white papers for commissions and boards to explain the status. Finally, the consultant assists with amendments to article 31. We have found as we have been implementing the code there are places where clarity could be provided to help in the implementation so well seek to do that with this scope. So, the specific personal Services Contract is with Langan Treadwell and rollo for 3 year term of august 2016 to july 2019. There are two one year extensions that take the contract a full 5 year Contract Term through july 2021 and when we expect the sites to receive suitability for transfer. The base term of 3 years is 1. 22 million and the two years extension would add additional 680 thousand for 5 year term of 1. 9 million. As i mentioned, this is sole source crarkt and didnt go through the solicitation process however staff thinks a sole source is justified because of the contractors extensive history and experience on the project that does make them uniquely qualified. Langan provided this scope of work to ocii for over 17 years and in that they gained Site Specific knowledge. The remediation the shipyard is broken into 50 by five 0 foot grids and contaminates of each grid is understood and reviewed and langan has the Site Specific knowledge. They also gained significant Institutional Knowledge over the course of 17 years which is culminated in the fact there is so much staff turnover with navy and regulators they consult with our consultant. There is very significant work ongoing and need to continue having the consultants assistance with specifically, rad logical restrictions. As the commission may know, there are certain parcels on the shipyard, specifically ir 1718s and portions on the shore line and lands fill that have rad logical restrictions. This is over seen by department of public helths raidation health branch. In their work with ocii Environmental Team, langan has prepared and presented a license exemption request to California Department of Public Health which was the first submitted in the state and that process was successful and as we move forward with the transfer of the other of all of those parcels we are hopeful we can rely on langans expertise in successfully navigated the process again. Lang nl is also the lead author a ocii request to regulators to list residential use restriction on parcel g, which is parcel that will be coming up for transfer in the spring. So, we are hopeful that langan can maintain and continue their work on that process as well. Finally, as stated we are hopeful the transfer of the parcels will come at a steady pace over the next 5 years and spitching consultants at this point can result in a multiyear delay receiving the parcels from the navy and delaying development of the site. I did want to make a quick note of the equal Employment Opportunities langan will embark on for this contract. They seek to enter into Association Agreement with ags. Ags is a minority owned San Francisco based business. They will per sue 3565 split which under our contracting policies will allow the contract to receive 100 percent sbe participation. Langan has undertaken a robust Trainee Program and trained 6 college students. Two of the 6 trainees are full Time Employees and one is a part Time Employee while completing their degree at city college. Moving forward if this suproved langan commitmented to hiring 4 additional trainees and a 5th if the contract extensions were approved. Staff is recommending the commission authorize executive director to enter into the personal Service Contract with Langan Treadwell and rollo for environmental technical consulting service. The 3 year base term of august 1, 2016 through july 31, 2019 and two one year options to extend. The total contract for 5 years is proposed at 1. 9 million dollars. I did want to make note that im joined here today by my colleagues [inaudible] there she is. Colleagueed amy brawno and joined by [inaudible] of Langan Treadwell and rollo and [inaudible] sbe associate from ajf. Thank you. Thank you, well take Public Comment first. Do we have speaker cards . We do, mr. Ace washington and mr. Oscar james. Good evening. I was going over the track record are and history of Hunters Point. I have been around a long time and documented years ago and notice the name here from the contracts. Im very impressed with hiring in the community, which is always good. My only concern is show a parallel of the last group herethis is environmental and i look around and dont see none of the Community People that used to come up and talk and some have passed on. The great mother jackson and others, but i dont see them coming up to advocate forit is not because they dont need it. I am the [inaudible] migration and clearly said we are obsolete in the city and county and you all talk about 5 years from now, from my estimate we will be less than 1 percent here in the city. Therefore, all the good things you are seeing today, in 5 years you might not say that because we as African Americans will probably not be around to benefit and that comes from the population going down. Im the zar of out migration and will lobby from this point out to make sure kids and grand kids are part of it. I would suggest to this company, take heed to the last company in hiring outreach specialists. Somebody that look like people in the community and [inaudible] immediately. Immediately for outreach. Now, speaking on behalf of what the city offered for us black folks, im reluctant to say but the truth the matter, we as African Americans will not be around. As you go through the statistics of the out migration. Certain Department Heads are supposed to work on it, nobody is. This mayor is not. It is budget time. I look at the budget, no where mention anything about African American, none of that. It says every other race. It was handed to him by Lieutenant Governor i may have to knock on his door. It is all most 10 years the out migration and went to the [inaudible] commission the other day, nothing is in the budget for us. We put a hold on all that. Ace is on the case. I want to go through all the projects to find what is going on lt we need to be part of whatever is left. Thank you, mr. Washington. Oscar james again. Hunters Point Shipyard. I was one the first ones to bring up on the Mayors Task Force in 73 about the toxins in Hunters Point shipyard. My father works in the Hunters Point shipyard and helped put a lot the toxics in the Hunters Point shipyard and fair lon islands. My concern is e and e 2, the lan fill that was out there. That is something i have seen been a fill. It once was a water and filled it with lead where they were sand blasting ships and raidation rods and barrels taken from the experimental labs in the Hunters Point shipyards where ucit is by the train tracks. Since the shipyard closed, the 9 Story Building has raidation in there. I dont know if it is d, but what im asking for this commission to look very hard at parcel e and e 2. I want it 100 percent clean. I have been talking to the navy. I havent gone to any meet ingsilately because my mother is sick in the past. I will go to the clean upshipyard clean up meeting i cant go this week, but we need to keep an eye on e and e 2. I feel they did a tremendous job cleaning up the sewage pipes there. They took the old ones out and replaced some of the new ones from the experimental buildings where a lot of the toxins had wnt through the land but they cleaned a lot of that up. Im in favor of a lot of the things they have done, but at the same time when we fought to get it listed as what do you call it . When they listed it as being dirty, superfund we fought to get that because of all the toxins and things that were there. Like i said, the main part to me where the raid augz rods is pier e and e 1 and 2 and like the knhigz to make sure that is 100 percent clean. I know a lot of people in the community are against what im saying in favor of this Company Getting the contract but i do support them. I like the fact that they hired a lot of people from the community and will continue on hiring a lot of the people in the community and that is our goal. I like to see the faces of those people they hired from our community. Some can look like me, but at the same time i was born in raised out there. It was never 100 percent African Americans, we had a Diverse Community and all the people that have been out there have a opportunity to have preference just like myself. We have to get awhen we fought and had a memorandum understanding 5 0e percent oaf the community, it was everybody. Thats not discriminate with race. Sometimes my people dont get the jobs so want people in the community who ever want to work get those jobs. When they hire people from the community, bring some of the people out so we can see their faces. Thank you very much. Thank you. Those are all the speaker cards i have. Okay. Commissioners, any questions for staff . Thank you, madam president. On page number 11, the work is ongoing and [inaudible] user request. How much job is done or needed to be done . So, the one rad logical request on ir 17 is successful and dont know if we will be required to go through a similar process on the other parcels i mentioned. The residential use restriction is currently well underway and the process could take up to a year to resolve for the current parcel, parcel g and we have similar issues on parcels c 1 and d. You think it will be done in 5 years . It has to be done before the transfer of the property so yes, it will be done in the 5 years. Before we entertain a motion, commissioner pimentel. How long has the Training Program been in existence . Let me see if [inaudible] can speak to that. The training requirements have been part of our contracts with the Redevelopment Agency and with ocii, so i think that goes back to 2004. 2004, there has been 6 college trainee students . And then if the contract was to be extended, you would hire one additional . Yes, with the current contract language previously in our first contract there wasnt a clear number of trainees over the contract and actuallyour first trainee we kept over a year as a intern and hired him full time, so now there is clarity for each 0500 thousand there should be a training associate would those dollar amounts. For the first 4 years that is 4 trainees so we would try to get a person in there every 6 months and we sometimes had two trainees at a time. If two folks from the community are available at the same time, we did that for one requirement. We had just two folks at the same time. We tend to often keep them longer than 6 months just to round out their experience dependent on the opportunity we have for folks. Okay. I have a question on the association with ags. How long has the partnership or relationship because it sounds like ags was a subcontractor for a while and this is a proposed prime association . Yeah, and durinda may be better able to speak of history have relationship but know they have done other associations in the past successfully with ags so it is a relationship that is able to grow. If i may to the chair, the commission did amend the purchasing policy last year to clarify the credit for associations, so as a result of that and working with ocii staff including compliance staff we were able to work with the proprosed contractor bumping it up to the prime. This award is to the two companies . The personal Services Contract is awarded to langan, treadwell and rollo and enter into agreement with ags to make sure it meets the policy goals of 35 65 split. I just want to make sure we arei know the answer, but asking on the record that through this Association Process given not just the prior relationship but new relationship which may or may not be very different from had past relationship, we are building capacity in ags to mirror capacity that langan has, yes . Yes. I think that is true. I think previously ags was used as a subconsultant on the contract to admichbster phase 1 esas dont ask what esa stands for. In the future scope of work ags will engage in that scope but additionally reviewing the documents i outlined in the presentation. We have a motion by commissioner bustos, unless you have a question. Seconded by commissioner pimentel. Please call the roll. Please announce your vote when i call your name. Commissioner pimentel, yes. Commissioner bustos, yes. Commissioner singh, yes. Vice chair maunds har, yes. Madam chair rosales, yes. I have 5 ayes. The contract is approved. Thank you. Can you please call the next item, 5 e authorizing a personal Service Contract with mjm management grume California Corporation for praurpt management of mission bay open space system for initial term of 3 years with one year option to extend the contract for a total aggregate Management Fee not to exceed 1 1,215,135 authorizing the initial fiscal year 20162017 operating budget in amount of 1 1,930,935 and authorizing the executive director to approve the subsquents annual operating budgets. Mission day north and south redevelopment project areas, discussion and action resolution number 342016. Madam director. Commissioners, this is another moving to mission bay important administrative matter before you. Certainly in your capacity as implementing the Community Development scope in mission bay and in your capacity as the mellow ruse Community Facilities administration not just for construction including parks but ongoing maintenance so it isnt a burden to general fund and voters are not voting on bond measures to keep upkeep and maintenance. This will provide ongoing Park Maintenance to mission bay system as well as initial approval of the initial operateic budget as typical as you have in years past. With that introduction i like to ask mark [inaudible] our mission bay project manager to walk you through the proposed procurement process in compliance with our purchasing policy, proposed contract scope and review process. With that, mark. Thank you executive director bohee. Mark [inaudible] project manager mission bay. Theite item before you is request for management of mission bay open space and approval of the operating budget for 201617 fiscal year and executive director to apruchb subsequent annual operating budgets. Brief overview, overview oof open space, mellow rooz Community District number 5, current Park Management contract, selection process, property manage contract we are proposing, operating budget for fy 2016 17, mission bay valvement with rfp process and equal Opportunities Program and staff recommendation. Mission bay north and south will include 41 acres of park land developed by master developer. These parks are owned by the city, the port and puc owner par tis pitation agreements ocii manages the park lands and will do so until 2043. The management and maintenance is funding. One of the process is select [inaudible] what you have is a chart of the open space showing different ownerships. The city owns the majority and port and puc has a couple sites in future as well as current projects. Parks are open to the mublic and managed by mjm and include portionoffs Mission Creek park on p 1 and mission bay north parks 15. Along [inaudible] boulevard. Parks on mission bay commons. Open space and the recently opened kids park just the other week. In the next 3 years we expect 12 more parks to open starting with Mariposa Park that will open next month by ucsf. This chart here you get to see a map here you see the open space parks that are ownen are marked with x and darker green will open in the next 3 to 5 years. Total it will be 29 parks and open space parcels. Funding for the open space come from Community District number 5 which is one of the 3 mellow rooz districts formed in 1999 to fund abigation tooz maintain and repair mission bay open space. These taxes apply to all private development in the mission bay accept for block x 3. Ucsf pays inlieu fee for campus processes, Affordable Housing and Government Properties and right of ways do not have to pay a fee. Mjm manages the open space. They were selected in 2009 and at the time had a 3 Year Contract with option for 3 years at the executive directors discretion. That option was exercised through good performance and fulfillment including policy with Small Business enterprisement there areopical amendments to allow for additional parks and gave 6 month extension last december. The contract did expire at the ends of last month. In preparation for the expiration of the existing contract request for qualifications of the services was issued. This is for the Property Management Landscape Maintenance and janitorial, general maintenance, security and other services for the mission bay open space. This included Additional Spaces they were phased in. The services will be reimburseed at cost with fixed Management Fee and funded by cfd number 5. Draft rfp was presents today the commission in october. 2015, the final rfp released october 13, 2015. The due date for response is december 14, 2015. Weonal had one response and that was mjm management. This response was reviewed by the Selection Panelthality included mission bay cac, master developer, public works, department of real estate, the port and ocii staff. All members the Selection Panel found the proposal to fully satisfy the criteria. The proper Management Contract that we are proposing will have a initial 3 year term with executive director having the option to extend additional 3 years. Silicon tract will not exceed 6 years and effective july 1, 2016. Scope is management and general operation, lands scape maintenance, janitorial, security that applies to existing parks and any parks phased in over the Contract Term. Management fee fixed muntly fee per park and only for the parks that are open. You can see in the Center Column it will show the parks that will be opened during the 201617 fiscal year and the total fee for this year is 158, 136. The total fee is 519, 588. If the 3 year extension is given, there will be a 3 percent increase on the e monthly fee starting the 4earth year and total fee is 1, 015, 135. The 201617 fiscal year operating budget includes all completed parks and parks phased in up until june 30, 2017. The rfm estimated for permitting and Services Reimbursement fees for private events. The next slide ill discuss that further but these fees are consistent with formerancy resolutions [inaudible] 18295 which adopted park rules and reg ygzs for mission bay open Space Systems and reg ulations for parks under ocii jurisdictions. The total operating budget is 1 1,930,935. The majority is fl the operating cost which is 1, 651, 159 and that is direct personnel, janitorial, landscaping and [inaudible] we have a linel item for capital cost of 26, 500 for maintenance and site furnishing and site equipment. Since the parkerize new that is low. We have a item for events. We have 2 types of special events. The private permitted events and then 3 public programs. Private events they have to pay a fee to use the open space, plus have to reemburse the expenses associated with the event such as janitorial and security. 95, 140 isnt fund d from cfd 5 but the fees and reimbursements and the fees cover the cost of the special free events such as kite day or easter egg hunts. Finally, the Management Fee will be 1, 58, 136 for total of 1 1,930,935 thousand. Mission day is vaurfbed involved in the rfp process. A member oof the cac was on the panel and Panel Recommendations to select mjm were discussed at the april 16 meeting. Cac has shown strong support by mjm and [inaudible] president of cac is here. The mjm formed the contract with 100 percent sbe participation so exceeding the ociisbe goal of 50 percent. The team meets equal Opportunities Program goals for mission day and mjm and subcontractors are in compliance with all of the purchasing and contracting policies. Mjm and subcontractors are here with us. Mjm madgeagement group is women owned San Francisco business and here today we have mary mu cue the president. Andrew bryant vp of external relations, cathy hickey who is new site manager and very excited to have her and [inaudible] site engineer. With subcontractors landscaping is robert poyas. They are minority owned and San Francisco business and today here we have sol vargs, Catherine Fox and gabriel [inaudible] Janitorial Services will be provided by aimed to please and a minority owned business established in San Francisco and today [inaudible] is here. Finally, a 1 protective services will be the security subcontractor and woman owned and minority owned San Francisco business and [inaudible] is here representing them and here to answer any questions you may have. The staffs recommendation the commission approve and authorize the executive drethder to execute personal Service Contract with mjm Management Group and provide services for mission bay and mission bay north and south for initial term of 3 years with one 3 year option to extend. Contract will be for Management Fee is total of 1, 215, 135. We recommend the initial fiscal year 201617 operating budget in the amounts of 1 million 930 thousand 935. Thank you. We will entertain Public Comment first before we ask any questions. I have mr. Ace washington and curren woods. Ladies and gentlemen, gives me great honor to support mjm because you all may not remember, she started in the Western Addition what 20 years ago . Did a wonderful job. I see a wonderful staff and how it looks. Im really proud of mjm. She has done a wonderful job and glad to be here to give word of support. The only thing i miss her from the fillmore. She was there with ella [inaudible] she started all the programs. Good programs. They hired the community. Slee started of improvements that you knowyou dont know what is going on in the Western Addition but when she was there she had the sameaccountable for everything. No problems and hired people from the community. Im just hoping and praying and can convince her to come back because im in charge of the garage and need a [inaudible] we have problems up and down the fillmore. I know you are busy but maybe you can come back and give inspiration to the fillmore. I call it the fill no mo. I am supporting here and doing a wundserful job. The kind of conditions we are now because we had great workers back there. Contractors. I such wish we could get her back to review and help out in the fillmore because we have no accountability in the programs. Dont know [inaudible] if we something of that napeer i would love to have her back in the community. You all didnt pay her what she is paid now but she is just as [inaudible] i want to give her my sporetd, mjm from ace. Thank you. Thank you. Good afternoon commissioners. My name is curren woods and chair the mission bay cac. Just want to tell you we are very pleased mjm is continuing to work with us on the Mission Bay Park system. I dont know any other entity in San Francisco that can do all the Different Things they do and that is probably why we only got one response to the rfp. We are very pleased to work with them. If you look at the information here we got a lot of new bunch parks coming along. Mariposa park next month. Put august 13 on the calendar, that is when we will celebrate the opening of the kids park at 10 in the morning. We want to be out before the giants come to the neighborhood. We have a lot to look at in the next few years and very pleased mjm is our partner. Thank you. Thank you. There are no other speaker cards. Okay, commissioners, questions . Commissioner mondejar. I just have one question, how long have we had mjm through the years . Ace says like this, so forever. 2004. Okay. This is the third rfp process. Continuing the good work. They seem to be veryno competitor so that means they are doing a great job so thank you. Commissioner singh. On page 14, special events, what type of events do they have . Can you name a few . So, the special free events are like kite day, there is easter egg hunt. [laughter] we have kite day, we have two film nights and circus bella, we have easter egg hunt. There are smaller music and childrens play activities and some poetry. We are hoping to do a swing dance night. How often do you have these . Primarily may through october. I forgot, we have howlowean for the dogs because there are a lot of dog squz come in costium. We usually have doggy day at mission bay and looking to bring that back. Thank you. Are there more dogs that children or are the kids catching up . More dogs than children in mission bay or are the kid catching up . I vote for the kid. The kids are starting to catch up and it is fun and a nice mix because the dogs have the run of everything and the children coming has really ceend of had the dogs more over the dog parks. Commissioner bustos. I just want to congratulate on doing a great job. I remember the last time you were here and congraltulations for keeping it up and sticking there and making sure the Community Gets to benefit from everything you are doing so thank you. I will move this item. Okay. It is moved by commissioner bustos and seconded by commissioner haund har. Maunds har. Commissioner pimentel, yes. Commissioner bustos, yes. Commissioner singh, yes. Vice chair mondejar, yes. Madam chair rosales, yes. Madam chair, i have 5 ayes the contract is approved. Thank you. Howloween, ill remember that. If you can call innext item. The next item is 5 f, workshop on january to june twnt 16 report on ocii Small Business enterprise and local hiring goal practices. Discussion. Madam director. Do we have a moment formake their way. Commissioners, this next item is informational presentation, a workshop everything 6 mupths we take a look how we are collectively performing with respect to our very high goals with respect to Small Businessert enterprise, contracting for professional serves and construction and local workforce hires. I like to ask raimened lee the contract supervisor to walk through the presentation. Thank you director bohe, chair rosales and commissioners. Quhait i like to do is walk you through the past 6 months performance with respect to Small Business engagement and Construction Workforce engagement. To start off, i provide just a brief background in terms of what constitute a Small Business and what our program entails. It is a 50 percent overall Small Business goal. Efts are enforced with respect to insureing sbes have a opportunity to compete in the projects and there is first consideration with projetharea sbes and San Francisco based sbes. A definition of a Small Business, the commission amendsed our policy last july to conform the standards we have with city of San Francisco and the standards are represented there. In terms of looking at a Small Business, often times it is looked a respect to ownership and licensed for a particular task and average 3 year gross receipt average. Afim affiliations are looked at for determining size standards. We have overseen awards of 5 contracts. [inaudible] 5 in stand alone aforeable housing and one in the xhrjs mixed use development. For the prior 6 months for point of reference, there were 11 contracts awarded between july through december for approximately 209 million. The activities are sitting as a 200 million activity level. We expect that to increase with the warriors stadium and rather the mixed use arena and also the candle stick point retail center. In terms of the breakdown between professional services and Construction Services as found in past instances professional services exceeded 50 percent threshold or goal. For the past 6 months approximately 28 million was awarded to Small Business counsituteing 65 percent. For construction that is below the 50 percent but there was a improvement over the past 6 months with respect to construction. 65 million awarded to Small Business which constitute 39 percent, it was 37 percent prior. I like to maybe pause for a moment and talk a bit more about is the distribution of the awards to Small Businesses and also to businesses owned by gender and minorities. This particular chart shows a simple availability utilization analysis. It is by no means a disparity study, but it is useful information in terms of staff and looking at the guidance with respect to any areas of concern or areas we should pay particular attention to. What is provided here is a chart of Small Business awards by ethnicity and gender. In the distribution of those awards. Compared against the number of firms awarded contracts, it is distribution and also the availability of Small Businesses as we determined based off the Contract Monitoring Division database of lbes and Small Businesses outside of San Francisco that have won contracts. Looking at that availability, we see that there is roughly 18 percent in Asian American, 4. 5i look at the rightfar right columns. 4. 5 percent black African American availability. 8 percent for latinos. 8. 4 for other. 1. 1 percent for subcontinent asians. 23 percent for non mitorty female and 36. 6 for non minority males. This is useful looking at comparison how our contracts have been awarded in the past 6 months. As determinedill use the first example with Asian Pacific americans, there were roughly 19 awards constituteing 19 percent of distribution of dollars. It is helpful in the sense of looking whether the awards are relatively i wouldnt say in line but to be expected if there were absence of discrimination or whatever the case may be. What is also of note is that the distribution of dollars so in the Asian American category as a example, while the number of contracts awarded on a relative expected basis, the dollars or size of those awards are what is telling is that it is small. What the big take away from this, i can say is consistently what we have seen is female both non minority and minority females have consistently been not obtaining the type of contracts one would expect with professional Services Contracts. Ill move on to construction activity. I think it is important to look at the awards of our contracts by ethnicity and gender and based on availability. Similar methodology with respect to availability with the Contract Monitoring Division database of local business and awards we recordsed. Primarily for Small Businesses outside of San Francisco. Looking at the distribution of the number of firms and distribution of dollars, what we can tell from this particular slide is there could be additional focus paid for latino owned construction firms, asian owned firms and non minority female. This is by no means a disparity study of any sort but provides guidance in terms of where staff should be looking at in terms of paying any particular attention. I know there were past concerns about a commission with respect to multiple contract awards, firms obtaining repeatedly contracts. What we have kun is took a deeper dive in terms of looking at the past 6 months activity. 42 firms received multiple contracts and multiple contracts in this case is 2 or more. Based on what we determined, only 19 percent of awards were awarded on a multiple basis. 58 percent wept to Small Business. 25 percent of the award to San Francisco based Small Businesses. What we determined is 90 percent of awards that had 3 or more awarded to a particular firm essentially went to Small Businesses, so it is telling there is high motivation among prime contractors to award to San Francisco based Small Businesses. Of those that have been successful they have been successful getting contracts. 81 percent of the awards with 3 or more contracts were to San Francisco based Small Businesses. We also took a different view in terms of looking at the 20 largest contracts this past 6 months constituted 130 million compared to 211 and that constituted 62 percent of all contracts. We determined out of the 20 there were 4 instances of multiple awards of no more than two contracts. In two of the instances it go to Small Businesses constituted 62 percent the dollars. One thing we will also look at is looking at last years activities. We will do that. I know there are concerns about Capacity Building. Building of the capacity of Small Businesses to perform at a prime level. We paid particular focus to that area and have emphasized [inaudible] and associations. Based on the past 6 months activity we had 10 joint vetchers and associations award contracts. The majority of the Partnership Benefit said minority female owned business, 4 of the joints venture associations were to black African American business, 3 to luteenee owned, 1 to Asian Pacific and 1 other and one non minor ity. There were 4 of the partnerships at the prime contracting level. One things in terms of continuing the effort and moving forward, we are looking at Affordable Housing projects and including selection considerations that include developer assisting ocii in meeting the objective of building Small Business capacity and what that means is looking at the developers efforts, and plans in terms of either encouraging joint ventures among the general contractors or things of that nature. We have left the door open a bit to have the developer also proposed to us what it is they think they can do to help us. We certainly have given them ideas with respect to joint ventures. A cumulative basis, not just the past 6 months but all projects that are currently being recorded by us and kept a record by us, currently there is 1. 7 billion in terms of oversight. 684 is to Small Business. Professional services have been above thereat 50 percent and construction is below that. It is represented by the line. What you see based on the general trends is it is relatively stable with a modest uptake. I know the commission have expressed concerns and desires looking at staff recording actual payments to contracts. I have to say the efforts are ongoing in terms of collecting monthly information. For Affordable Housing project we certainly have maintained that with respect to the monthly pay applications but for private development that is a ongoing effort. I have shown here are that there were 3 projects completed in the past 6 months period. First is the [inaudible] Senior Housing or dr. George w davis Senior Housing and center. That is a stand alone Affordable Housing project. Originally committed was 43. 1 percent and recorded 44. 9 percent. Another project was in the Hunters Point shipyard phase 1 block 49, that is inclusionary Affordable Housing project. Originally committed at 57 percent, what resulted is 53. 3 percent. Finally, Mission Bay Block 12 east, arden market bay Housing Project. What was committed at 22. 3 percent resulted in 18. 5 percent. We see with respect to Affordable Housing project and inclusion Housing Project we have a bit more leverage and control in the market rate housing there is a bit more flexibility in that. For outreach, we understand outreach to be a very important aspect. It is very important in terms of developing relationships with the Small Business and minority women communities. What is detailed is the activ tease that have undertaken in the past 6 months. We continue to advertise. All of our bid advertisements we have with developers and general contractor have are advertised on ocii website and oci website which is Cities Office of contract administration. There is a company prebid and proposal meetings with that that we continued ongoing dialogue with bayview subcontractors, the National Association of minorities contractors, womens construction owners and so forth. We will continue certainly ourwhat i consider ongoing and aggressive outreach efforts. In terms of workforce, ill pause and tell you a bit about our Workforce Program. It is also on a 50 percent basis. It is 50 percent of San Francisco workers on a contract by contract basis, similar to sbe there is first consideration that is given to project area residents. We have Hunters Point shipyard candle stick point and mission bay. City build administers the Workforce Program where they provide the date of compliance and referral to San Francisco residents. For the past 6 months, what is shown is that there is roughly 286,000 hours performed by local San Francisco residents against 1. 1 million hours logged, roughly 25 percent. What is also shown are the break out in the various project areas. I mentioned the 3 projects areas and maintain ongoing activities with respect to the hunters view phase two project represented by by view Hunters Point and miscellaneous projects represented by other. What we see from the chart is the additional attention and focus that is paid and the resources that are dedicated within the candle stick point area. It is reflective of the hire local resident percentages. I know there has been past interest looking at the ethnic make up of the workers in our particular projects. What is reflected in this chart are 6 month activity and hours logged by each of the workers. Identified within the ethnicity and i have to beokay, and other is something that we are seeing quite common where folks havent been designated a specific ethnicity so they may be multiple ethnicity. Never the less, what is shown in this particular chart is the total break out of all hours are shown where 12 percent are performed by African Americans, 24 percent by cawitations, 49 percent by latinos, less than 1 half a percent by native americans, 4 percent by Asian Pacifics and a whopping 12 percent by others. As far as San Francisco workers are concerned, there is a distribution. You can see the fair majority of African Americans are San Francisco residents along with that are Asian Pacific. It tells us that a fair majority of the population that are crossing our traveling for construction are predominantly latinos and caucasians. For bayview Hunters Point, you can see that the majority are African Americans at 51 percent and that counsitutes rough ly 83 percent of all San Francisco hours. You can see that theessentially the bulk of the residents within the African American community that do perform reside in the bayview neighborhoods. Along with that is the latino population of 25 percent bayview. That counsitutes 37 percent of all latino hours that are recorded. Overall, 39 percent of the San Francisco hours are performed by bayview Hunters Point residents. A overall basis what i provided are the hours log for all of the active projects on the books, a total of 6 million hours have been logged. About 1. 6 million are performed by San Francisco residents constituted roughly 26. 4 percent. This is a modest decrease from the prior reporting peert of less than a half percent. I do want to just provide context in terms och the hours. What we keep track of is the number of workers and we are not talking about full time, we are talking about the number of hands that have had some part of our projects. 6 million hours constitute roughly 17,000 workers that had a hand in the projects, of which about 3400 were San Francisco residents and over 1330 were bayview Hunters Point residents. One other observation i like to make is average work hours per formed by San Francisco residents are roughly 43 percent higher than non San Francisco residents. San francisco residents performed on average about 425 hours on the projects compared to less than 300 by non San Francisco residents. It tells there is some effect by our program with respect to engaging San Francisco residents. Of those that are maybe let go isnt the right word but of the efforts by the contract to demobilize the force they are looking to keeping San Francisco workers longer than others. I want fooidentify workforce challenges. We saw earlier that the workforce is sitting on 26 and a hlf percent. There is no doubt challenges with respect to workforce. Meeting the workforce demands remains a challenge because of high level of construction activities that resulted with the booming economy in San Francisco in particular. There is a limited form of local resident construction workers particularly within the iron workers and roofers. There is Strong Economy has had an effect in terms of drawing folks to considered employment other than construction and that is a particular challenge. I also provided somea captions from a report performed by a consultant on behalf of economic and Workforce Development for their Strategic Plan and we understand the boomingnot booming but boomers retiring, that has had an effect. 40 percent the workers were 45 or older in 2012. 13 percent of which are 55 and older. In the year 2016, i imagine this percentage would have increased. A bit of statistics, the labor statistics from 2005 to 2015 recorded the number of workers and recorded there is nationally a decrease of about 15. 8 percent of workers in the Construction Workforce. In San Francisco, nearly 19,000 jobs were lost between 2005 and 2015 and that represents about a 20 percent decrease from that 2005 period. It is a challenge. I believe city build does recognize that or oewd recognizes that. There is substantial efforts made in terms of biltding a pipeline of construction workers providing Construction Industry is a attractive industry for great opportunities. So, well continue to work with city build, city build will continue to work with the industry and Community Partners to build the pipeline of construction workers. A little about Alice Griffith residents, i know there is past interest. The urban strategies does have 24 Alice Griffith resident that they are work wg closely on a Case Management basis. 11 are in employed and 13 they are currently working. In terms of summary and next steps, the sbe percentages fluctuation is expected but have to say that fortunately it is modest up trend. We will perform in exercise additional and continuing efforts for sbe with respect to construction. We identify construction as a particular challenge. We will look at the building sbe capacity encouraging joint ventures and associations and at the prime level as well. I have to say wasnt particular our focus in the past but that is moving forward. Encouraging supplier participation. That is a area that could use improvement as well. Certainly, sbe networking. Deepening relationship contractors have with the local community and Small Business. We will continue to increase efforts where we can in looking at the local Construction Workforce and everything opportunity we can we have promote the lbe certification and in partnership with Contract Monitoring Division and have ongoing dialogue with them and at every opportunity we encourage folks to get certified. With that said, i am happy to answer any questions. Thank you. Thank you for the report, very thorough. We need to take Public Comment. We have pete varna, oscar james. Good afternoon commissioners. My name is pete jarma representing nalths association of minority contractors. We see progress, which is great. We have been work wg ocii staff. They have been very diligent working with our association and identifying contractors and supplies that could be subcontractors. While looking at the ovall span, 39 percent, we would like to see especially targeting to majority of our members are in the 94124 area code which are majority of the contractors reside at 1485 bay shore in San Francisco and that is where they are. Looking into the capacity biltding is key to success in increasing some of the goals. For example, if we have a masonary contractor working on one contract and should continue to other projects because there is similar type and scope of projects taking place in San Francisco, that will give him a opportunity to grow and hire more employees and sustain his growth. Otherwise what happens is, these contractors bid on a project when they finish and if they dont win 2 other contracts or 2 other contracts they wait in line to grow their business. One of the challenges for us is there are not many minority owned masonary contractors left in San Francisco. There are very few, maybe one or two. These are the ones we want to be able to provide growth and the way the [inaudible] is coming across is helping them form a joint venture aagreement with company and come up with Financing Options so they can meet the pay role and bonding insurance and so forth. This is getting a little growth. Some the challenges there is for us has been in the mission bay, Western Addition and transbay, which is a mu jrt of the large scope of contracts. We dont see too many folks working in the transbay projects and it is a a challenge. We are working with the general contractor tooz make sure that participation is from our membership on this project and i think if we continue to work with them, we may be able to increase participation and goals. The another area that reaened talked about is increase of supply par tisitation. There are a lot of is supplier Small Businesses in San Francisco still left, it would be great to see more participation. They will increase hiring of more people, as you hire more people you have more contracts and also will allow to increase these supply goals required by ocii. Overall well continue to work with ocii and closely and look at Capacity Building for our members and we hope one day well reach the 50 percent goal. Thank you. Thank you. I am in support of what was said about minority contractors and what have you, but there is a couple things i have concern on. Some of these minority contractors not being able to pay their own workers, building up a record where they can build capacity by paying employees. We need to have the subcontractors and minority contractors to gelt from the general contractors pay in enough time to pay their employees and buy supplies or whatever they need to to continue on doing work. It is very important for minority contractors to have that opportunity to pay so we can build capacity. Most Insurance Companies look at the record of how they are paying, how they build their capacity. They can go from zeeree bonding capacity to 2 or 3 million just by doing pay roll and thinks like that. The other thing, a lot of problems they have in Small Businesses is having a place to house some of their equipment and supplies. They can use a area like the shipyard or port where they can get a weir house and house their equipment and supplies, that would make it more easier for them to be able to bid on bigger contracts because the equipment and supplies they will have on hand in the community so that is another thing i would like for this commission and your Compliance Officer to look at facilities for them to have a place where they can store supplies and those type of things. Another thing i was thinking about and this is kind of different from being a subcontractor, is like when they complete all these housing and what have you, we have a lot of homeless families in our communities and we need to have in these developments when they completed a project, that they bring in some of the homeless families and put them in some of these developments so they can become stable because it is a crying shame for us to have young kids not omgrown folks homeless but young kids homeless and have no where to go. We are building all these developments and look looking at putting them in housing and think that is a concern the xhishz should look at making sure the homeless families are housed in the different projects. I looked at dr. Davis when they completed theirs and have Homeless Housing for seniors and took them off the streets and gave them furch furchture and think it behooves the commission to do the same type of things on different developments. Thank you very much. Thank you. Mr. Washington. Okay. I definitely have to speak about the Western Addition but back and forth. I had spoke to mr. Lee earlier and great job since he has been here. I directed him to bring records to you which he is doing, but i also want to reflect Western Addition a map of the a 2 area Western Addition. This color here is just the fillmore from fulton up there. What im saying is quh i spoke to him, in this community we have 5 Major Projects of work. I asked when he came onhe tells he your agency doesnt monitor the job sites in the Western Addition. We have [inaudible] which is kenied tuckydy which is a senior spot which im a senior. [inaudible] then the sites the first thing they say we work with city build. City build in my community, i congratulate Hunters Point and lunar because they have all the black folks. All these other job sites you dont see us working there. There are not that many of us in the community and we will be left. You talk about all the housing you are building and thousands of people moving in. We wont be living here. My main certain in the city and county, you have to address the diminishing of the black African Americans. You have to do something right away. I dont care if it is set aside. What im saying, going back to Western Addition, it is awful. We dont have no work no where. The contractors come in here and first thing they say is city build. City build says we monitor. You are not monitoring because we are not working there. City build is under oewd which is scrutinized which will have some type of shadow over them. What im saying is, mr. Lees report and he explains what is happening, but wish we could have that all over the city to make sure what is going on. Hunters point is doing a wonderful job, but the rest of the city we dont have no work no where because they say city build is monitoring it. City build is under oewd right now and under scrutiny so there is it. Im just going to close by saying i appreciate mr. Lee and doing a wonderful job under your directionism we can kind of see on paper what is going out there. He did say he would try to talk to other contractors. I can find out what is going on in my community. Thank you. No other comments . Okay, this is a workshop, so any questions . Suggestions . Very good job. Thank you. Yes, please. Commissioner mondejar. Very thorough, thank you very much mr. Lee for the presentation. You had a comment about some of the contractors not indicating the ethnicity of their workforce, could you expand on that . When i say contractors im saying the workers. The workers have provided other ethnicity. We suspect that may be because of multiethnicity backgrounds or those that have declined. So, do you not state not stated on your report . I guess i have to find out from the program what the contractor enters if there is someone that declines. I am all most certain or do not state. It will be interesting to find out how many are not stating because we are trying to monitor compliance. The number of workers we can identify, there is no doubt about that ask can pull that information, but as to why somebody would decline or not state we dont have to ask that question, but it is interesting to fiend out what the numbers are. Sure. So, on your workforce challenges, this is quite a list and that you have and soyou also have the mitigating measures. How elsewhat exactly are you doing to addresscan you be more specific . I havei dont want to put him on the spot about have ken min manager of city build. We recognize workforce is a challenge and know city build since theyre experts more so than the capabilities of internal staff, theyre experts work with unions and industry and know they added classes but ill let ken speak to that. Good afternoon commissioners. Thank you for having me. Ken, the manager of compliance at city build. A couple things we are doing and how we deal with the pipeline of available construction workers is expanded the city build academy. Last year we have two cycles and have about 50 student in each. We expanded a additional cycle to have 3 cycle as year and doing the same this year and one och the key focus is target the Public Housing residents. We have done a lot of outreach and Community Partnership with a lot of organizations providing services in the community and recruitment. I want to address mr. Washington concerns, we are looking at the Public Housing sites in district 5 and as a lot of the work is expanding in the construction work around the city, we need as much bodies as possible. That is a one the biggest challenge is having available workers that can meet the demands. We are looking forward to expanding and kooing more outreach and Big Partnership is working with Public Housing sites with Services Providers particularly on the rental assistance demonstration project including a lot of Public Housing. There is Service Providers within the sites doing the day to day work and recruited from their programs and addition to the academy we also created specialized training certificates. We graduated 12 residents that went through the Training Program and placed them outside not on just ocii projects but projects across there city and with those we are still not meeting demands. As city build as mentioned we monitor the majority the projeblths throughout the city and looking at least 5 projecktds worth a billion dollars or more sothality that is a big drain. As long as there are workers that want to come in construction we are here. We want to provide that services to any community not just bayview or transbay. Do you track retention of the workers after they graduate and you place them . What is the retention rate . We track retention for the past 10 years in the program. A lot have journeyed out and particularly for our program we have 95 percent placement rate. The other 5 percent is individuals realize construction is not for them when they graduate so we help in placement in other jobs. Apprentice we track them year by year and usually have about 80 percent retention rate and the reason is because all the expansion and construction and a lot of workers that are successful and want to continue have been sustaining employment and it is one the strengths is because of the ocii partnership with the work going on transbay and bayview Hunters Point and mission bay. Individuals continue to get employment when they finish with one project to other projects. What type of outreach do you do . We have Community Organizations that work in the target areas. They have servicess directly work wg a lot of the Public Housing residents i mentioned. They are out in the community doing outreach presentations and on top of that city build we provide a biweekly presentation out our one stop sener at Mission Street where individuals can come at the time designated and find out more about the program and how they can work with city build staff on top the Community Organizations we provide contracts to provide that service. Very thorough. Are there stipeened associated with the training . We dont provide stipeened. We believe providing a train where individuals benefit when they graduate from a program we pay the initiation fees and some of the fees can cost up to a thousand and get the basic tools and hard haet and safety boots and all the saelft gear squz all the basic tools the union requires so those can cost up to 3 thousand per person. We dont provide financial stipeened but provide weekly card for grocery or gas cards or fast pass. So there is some support. Exactly. When they graduate they have support rfb services. They graduate 6 months or a year or more and they have challenges in the personal life where they may not be able to keep up union dues. Their car broke down or Service Providers provide Case Management and help them pay for some of their fees to fix their cars so they can go to work. Those are Supportive Services and Retention Services to make sure they are successful in their career in construction. Have you done any studies that assess whether you reached the limits of who is available in San Francisco . We are currently working on that. One of our consultant dr. [inaudible] and associates. We are looking at that in preparation for mandstory local hire and to give bigger context with the city since we have the local hire if you dont meet the requirements there are penalties involved. Those are publicly funded projects by the city and county of San Francisco and to date we published a annual report from the past 5 years we have managed the program and have over 6 million hours and 3 7 percent are local residents so that creates a drain in the ocii projects because contractors dont want to get penalized so they keep the workers employed so they not be able to work on projects ocii is managing. We manage the Mayors Office of housing hud projects in section 3 so that has another requirement under hud regulations. What we are providing and believe is a Business Service we help contractors provide quality workers. Yes. What is the typical profile of yourthose who take your training and then the profile of those who are tracked for retention . Are
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