tv Government Access Programming SFGTV August 2, 2018 7:00pm-8:01pm PDT
three-year phase-in starting in 2021. and ramping up to 2023. and eventually arriving to 3% for retail and 1.5% for everything outside of retail which is also identified as upstream. as you know our limits to ballot initiatives require a continuance. and i appreciate the industry engaging on this issue but given the two-month public process that we have been working through i believe that it's a little bit too late. as a reminder these are just interim rates that will appear on the ballot and the board can revise the intro rates down at any time after passage before this goes into effect. i want to make sure that we consider the options. however, if any of my colleagues believe that this is inappropriate to do so, please, let me know. the amendments today would require that we have a special meeting on tuesday morning, july 31st.
and with that i open up the discussion to colleagues. supervisor fewer. >> supervisor fewer: yes, so after review of what we have received today and actually i am of the belief that the board has the ability to amend this by ordering it to later on. and that it isn't imperative that we conclude this today. i ask the city attorney for his professional opinion on that and whether the legislation proposed allows the board to have the ability to actually make these changes later on. >> deputy city attorney john gibner. as i understand the roposa proco lower the rates for retail and non-retail and scale them up over the course of three years. between 2021 and 2023. >> chair cohen: that's correct.
>> if this ordinance is not amended and you place it on the ballot and it passes the board of supervisors can legislatively lower the rates by adopting an ordinance in the future without going back to the voters. so effectively you can accomplish what this amendment would do after the measure passes by adopting an ordinance at the board. >> chair cohen: okay, thank you very much. that's helpful. supervisor stefani, you have any thoughts? no. okay. all right, seeing that there are no thoughts -- >> i would like to say that i also believe that because it's actually more prudent to actually do it after this has gone on the ballot because then the board would have more data to choose from and to review and to actually make a sound judgment on this. and, actually, the legislation
allows for that as we heard from our city attorney. >> chair cohen: okay, appreciate that. thank you. so we can go ahead and open up to public comment. i see that we have mr. lazarus here who would like to speak on items 15 and 16? >> i am a licensed cannibas distributor in san francisco. and i want to make sure that everyone is clear on what the impact would be on a gross receipt tax. as a distributor i have three responsibilities -- transport, test and tax. i pick it up from the grower. the lab tests it to make sure that it's safe for consumption and i deliver it to the retailer and i collect excise and i collect cultivation and i give it to the state. my business operates on low margins. anywhere from 3% to 10%.
a 10% tax on gross receipts, if i buy something for $900 and i sell it for $1,000, a gross receipts tax means that i make zero dollars. i have two options -- i can charge more or i can go out of business. or i can work somewhere else. i'm just part of the value chain. every other business that i sell or buy from has to do the same thing. gross receipts tax is bad tax policy and it's a depression era policy. there are other ways to gain tax revenue. i'm very grateful for my permit and i'm hiring through the s.f. jobs portal. i know that it will be a very impactful business. please reconsider how you tax with gross receipts.
>> chair cohen: thank you. colleagues, i want to acknowledge that the distribution is exempt from the tax and that we are not discussing or considering a tax at 10%. >> jim lazarus, san francisco chamber and i appreciate your work on this and certainly supervisor cohen. we urge you to proceed with the amendment, proceed with the special meeting next tuesday and to put a measure on that will have the support of the industry and the broader business community. we believe that a tax rate that is excessive comparing the legal cannibas industry to the underground illegal industry will do nothing to move forward the type of changes that we want in this industry and to bring being it out of the shadow -- bringing it out of the shadows and taxing it and regulating it and having it available to the public in the following way. following state of california and following other communities'
misguided tax policies is not what we should be doing here today. this industry pays taxes today, and the city's gross receipts and payroll taxes apply to this industry today. but the rates that you add to that -- and, remember, these are additive, may hurt the legalization of this industry and i know that is not the intention of the board or the industry. so the chamber urges you to take seriously that proposal put forward for a further year delay for a phase-in during the start-up years of this infant legal industry. allowing the board in the future -- we don't want to appear to lower them -- hopefully this is successful enough that under your provisions you will be able in the future to raise these taxes on an healthy industry. that's what we ask you to do. there's time to do it and we request that. thank you very much. >> chair cohen: thank you, next
speaker. speaker.sfgov, can i have the overhead, please. president cohen and supervisor stefani and supervisor fewer, thank you for hearing my comments. i would like to congratulate jim lazarus and myself for being 3-3 and batting a thousand at the budget and finance sub-committee. i am pleased to hear that you are considering additional amendments. i worked with the california growers association and the chamber of commerce to create rates that this industry could get behind and support. the rates as proposed when you look at the rest of california are, in fact, reasonable for a cannibas tax. but not reasonable from a tax of any other industry. so the rates that we propose up here on the overhead, have no tax for 2019-2020 and then phase-in for retail and non-retail. i point out that retail will pay double the tax of non-retail in
our proposal here. because on retail they have a lot more hurdles than us. so consider the amendments that we've requested, consider the special committee hearing, and thank you to everyone for their very hard work on this very important matter. and if anybody is interested in learning more about the retailer alliance, alliance our website. >> chair cohen: thank you. next speaker. >> hello, my name is brandon brown, the treasurer of the sfcra, and i appreciate the board allowing us to speak on this issue. i don't want to sound like a broken record but i want to just remind the board that the reason that we tax cigarettes and alcohol and other drugs is because they kill people and
cannibas hasn't killed anybody, it's actually curing people. and so i'm not going to say that the tax isn't justified but i would love to know more about why we're getting taxes on top when no other industry has a social equity program. thank you, president cohen, for kind of spearheading that. and so compassion programs and the other industries have that. we already have pretty high tax, state tax. there's already a gross receipts tax for businesses. and so i think we're really just asking to be treated like every other business in san francisco. i guess that also the main difference between cannibas and other businesses is that we cure people, we cure ptsd, and we cure cancer and we cure child leukemia and other various basic pain allmentpain ailments that e
quality of life for a number of our elderly and the military coming back from war with a lot of issues. and pharmaceutical companies as we all know are not a big help in that respect. and so i would like to just bring some of those more emotional facts to the table when we talk about who's going to really be affected by this. it's going to be the consumer, like the distributor here pointed out, it's raising the price and they'll go out of business. so the cost will be handed off. >> chair cohen: thank you. and also i want to say, mr. brown, medicinal is not going to be taxed and recreational is what is taxed. thank you, next speaker. >> hi, i am jolene enns and i'm here as a worker in the industry. for the last 12 years i have been supplementing my income or completely supporting myself in the cannibas industry as a
worker, as a trimmer, just doing labor. and for a long time that was enough. those jobs that you used to pay $25 an hour or the equivalent are now gone. i'm fortunate that i got a job with a small cannibas company in the city. we occupy 4500-square-foot facility in soma and we have a 25,000-square-foot cultivation facility that had to be moved to oakland because we just couldn't afford to do business in the city here. i'm here today because i am worried about my job and the jobs of others like me that are going to be squeezed with more taxes on our industry. it was pretty clear before the regulations came into effect that when prices were low for wholesale product and rents were high, the only way for producers
to make up that difference was to lower the rates that they paid for their workers. so i can toitle totally see that happening in this industry too. there's no margin right now and we're really scrambling to get products on the shelf that are compliant with all of the regulations that are, you know, still shifting. so i'm here to speak for the workers that are trying to make a living in this new industry. thank you. >> chair cohen: thank you. next speaker. >> good morning, supervisors. my name is dr. chris emerson, the c.e.o. of the manufacturing company here in san francisco. we operate at a severe disadvantage already against the illicit market and so we can have runway and the state will start enforcing that, the high tax rates are destroying the companies that are trying to be compliant within this. so not only 15% excise tax but
lease taxes that we have to account for. and so upstream and downstream we have a heavy tax burden. there's also 280-even so as a business in san francisco or federally i pay roughly 30% more for taxes because we're not able to take a lot of writeoffoffs tt other businesses are. and we understand as an industry that we'll pay higher tax rates but the tax rates proposed at 1.5% with the ability it go up to 7% over time is untenable for companies to really survive or that want to remain in san francisco. and i would like to draw also to your attention supervisor cohen that there's a very significant possibility that the medicinal market in california is going to be gone in a few years. the state of california doesn't want a two-tiered system and most retailers and operators in this space, almost everything is going to quote/unquote, a recreational market. and it's just that there's too many barriers for the medicinal market to actually survive.
it's something to keep in mind. so as mr. lazarus suggested we urge you to consider this procedural needs to have one more special session so that amendments we propose could be considered, thank you. >> chair cohen: thank you, next speaker. >> my name is elaine brown and i'm here to really talk about something else. we have been trying to reach you, supervisor cohen, for some time and i have gotten emails from my office putting me off and saying you're in budget hearings and i'm here with a number of delegations from your district in hunter's point who are suffering from cancer and so forth because of the radiated land. you chose to not only expand the reach in hunter's point shipyard but said this is a dream to come true to build on that and then put the big scanners out there. i'm here to ask you can we meet with you to tell you what we want to talk about since you won't come to hunter's point and talk to the people there, that the people had to come here. i can't believe that you called all those police to come here.
i watched you text them, two minutes later they're showing up like we're enemies of the people. you have shown yourself to be an enemy if you don't have a meeting with us and give us a date for a meeting. i would like to introduce you to someone that you know well, danielle carpenter, whose husband lost his life because of that radiated land. that's my time. >> two years ago on march 22n 22nd, you and i spoke and we talked about -- you said that you would reopen the case because another whistleblower had come forth. i have not heard anything and now this is going on. we would like to schedule an appointment with you to sit down and figure out what's going on. plain and simple. >> (indiscernible). >> good morning, my name is william dolan and i'm here to speak on behalf of two applicants right now.
i represent and work with two applicants that have applicants in the office of cannibas for retail licenses and i would like to first say that we support the proposal put forward by the san francisco chapter of the california growers association, the san francisco cannibas retailers alliance, to adjust the rate schedule as proposed earlier by the gentleman that put up the schedule on the screen. and we would also like to speak in support of a cap on the tax at 4% instead of 7%. and specifically i'd like to address the issue of how this is going to impact the equity on businesses and after a two-year extremely challenging process of getting license and trying to open up their doors and dealing with the costs associated with that, securing real estate and renovating the real estate and then opening to a very challenge being competitive environment. so i'd like the board to consider the impacts that this will have on equity owners trying to operate in this small
business environment and if there's a potential for an additional grace period that asupplies to equity owned cannibas businesses. something to exceed two to three years. that would make their tax plan kick in around 2023 or 2024. and any type of additional grace period would be greatly be appreciated and extremely helpful for equity applicants trying to open up a business in san francisco. >> chair cohen: thank you. >> good morning, supervisors, my name is ryan ingo-warren and i work in the cannibas industry and a san francisco native. i thank you for your consideration on this issue and as i came in i heard about possible continuations to continue the amendments and i support that. and i apologize in advance if i repeat myself at all. i want to just offer some context. in october 2016, oregon's issues
came in effect and the supply chain backlog was so severe that it brought their cannibas industry to its knees and resulted in temporary layoffs of 70% of their workforce. and it's not that bad here yet, but there are some similarities that are alarming. and that sort is the broader context of the big part of that problem was poorly written statements that were requiring testing accuracies that the labs themselves were not yet certified to meet. unfortunately, that is identical, that particular factor, is identical to what is happening in california. so given that most of that is beyond your control i hope that you will take action where you're able to by reducing the impact of these new regulations on local san francisco businesses, by mitigating the gross receipts tax. as may have been mentioned earlier the proposed taxes are
5% to 50% higher than those leveled against other businesses and we're just proposing a little consideration there. also we have seen higher taxes force patients and consumers back into the unregulated market which may raise public safety concerns with untested product and reduces your overall tax revenue. so i close by echoing the recommendations of pie colleagues and i'll leave information for your reference. reducing the cap to 4%. and encouraging the state to lower both the excise and the cultivation tax. and doing something about the unregulated operations. >> chair cohen: thank you. next speaker. yes. next speaker. >> hi. i am a resident of bayviewpoint. and i'm here with... (indiscernible) i really want
appreciate if you give us a time to meet with you. i have been at hunter's point for a very long time and i now have a clot in my left atrium and i have had a heart transplant and i'm waiting on a kidney. and i do believe that it all came from living up there for 50 years. that's all i wanted to say, thank you. >> chair cohen: thank you. all right, public comment is closed. thank you. so, coa colleagues, i'd like to table item 15 and approve item 16 and move that with a positive recommendation and send this to committee and cent i send it asa committee report. supervisor stefani? indicated yes for the record. and if you have any clarification on anything let us know so that we can get to the
information that you need as well as a timeline and answer whatever questions that may persist about the proposed tax measure. and we will take that without objection. thank you. all right. madam clerk, any other business before us. >> clerk: no other business. >> chair cohen: okay. thank you, we're adjourned.
>> good morning, everyone and thank you for coming my name is rosy form treasurer of the united states and the form of empowerment 2020. >> yeah. >> empowerment 2020 is an initiative to durnl encourage a million women we 2020 to go in leaders positions it is request quality day and the one hundred year of the 19 amendment that
give woman the right to vote joining me on stage a margo the ceo of ma tell. >> (clapping.) >> 74 percent have been girls in middle school express interest in office only girls are expressing an interest in computer science 50 percent less graduating are for girls than thirty years ago i've spent 8 years of the treasurer of the united states to have a portrait on the photo in our public engagement process there were one hundred of women overlooked in the history of our country many tops will be discussed and empowerment 2020 conference everything there empowering young women and girls to be the future leader to encourage women
to get into stem education and getting into nasa and google and making sure that they are part of tech economy. >> the second part of empowerment 2020 is women money and power to put women in so and so positions for the corporate fleet and elected office the third part of empowerment 2020 are the conferences their action oriented women have flatlined at 20 percent on that percentage one and 20 percent women a in congress that is stagnated if we get up to thirty percent fabulous 80 percent would be amazing that conversation is equality will be something we're used to as pair the culture i'd like to that that will be done like to that that will be done in 2020 but if - working for the city and county of san francisco will immerse you in a vibrant and dynamic city
that's on the forefront of economic growth, the arts, and social change. our city has always been on the edge of progress and innovation. after all, we're at the meeting of land and sea. - our city is famous for its iconic scenery, historic designs, and world- class style. it's the birthplace of blue jeans, and where "the rock" holds court over the largest natural harbor on the west coast. - the city's information technology professionals work on revolutionary projects, like providing free wifi to residents and visitors, developing new programs to keep sfo humming, and ensuring patient safety at san francisco general. our it professionals make government accessible through award-winning mobile apps, and support vital infrastructure projects like the hetch hetchy regional water system. - our employees enjoy competitive salaries, as well as generous benefits programs. but most importantly, working for the city and county of san francisco
gives employees an opportunity to contribute their ideas, energy, and commitment to shape the city's future. - thank you for considering a career with the city and county of san francisco. >> shop & dine in the 49 promotes local businesses and challenges resident to do their shop & dine in the 49 within the 49 square miles of san francisco by supporting local services in the neighborhood we help san francisco remain unique successful and vibrant so we're will you shop & dine in the 49 chinatown has to be one the best unique shopping areas in san francisco that is color fulfill and safe each vegetation and seafood and find everything in
chinatown the walk shop in chinatown welcome to jason dessert i'm the fifth generation of candy in san francisco still that serves 2000 district in the chinatown in the past it was the tradition and my family was the royal chef in the pot pals that's why we learned this stuff and moved from here to have dragon candy i want people to know that is art we will explain a walk and they can't walk in and out it is different techniques from stir frying to smoking to steaming and they do show of. >> beer a royalty for the age berry up to now not people know
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steafani. and the broadcast on sfgov-tv and welcome miss linda wong who is the clerk of this committee. madam clerk, any announcements? >> clerk: please silence all cellphones and any documents to be included as part of the file to be submitted to the clerk. and the items appear on the agenda unless otherwise stated. item number one, resolution to retroactively to approve a contract for the management and the operation of the airport's public and employee parking facilities between new south parking and the city not to exceed approximately $125,000 through from a five-year term from july 1, 2018 through june 30,2023. >> supervisor cohen: supervisor yee is just joining us now. kathy widener will discuss item one and we have john newman who
is an attorney at law from the newman group who is here to assist with any other questions. mr. newman, where are you? good morning and welcome. miss widener? >> good morning. the item before you is a proposed new five-year professional services contract to oversee the parking operations and management at sfo with new south parking. the item was before you last week and it was continued while we looked into some location headquarters just to make sure that or to clarify that the companies involved in this partnership are not headquartered in any prohibited states. i can confirm today that new south parking is a general partnership, comprised of two partners. the majority partner is s.p. plus corporation, it's a delaware corporation who is headquartered in chicago, illinois. and the other partner is global parking systems.
which is a louisiana limited liability company with its headquarters in new orleans. neither of those states is prohibited through the 12 acts ordinance. and i also just want to point out that it was brought up last week that there may have been missed opportunities for local businesses. new south parking has also partnered with s.f. parking l.l.c. which is a certified l.b.e. and s.f. parking will oversee s.f.o.'s employee parking program and the long-term parking facility offers a concierge service overseen by this certified l.b.e. and there's representatives from the company here today if you have questions for them. >> supervisor cohen: the interesting thing about l.l.c.s is that many companies and entities can hide behind them. is there a representative today? >> there is. >> supervisor cohen: why don't you come up and introduce yourself. thank you, miss widener.
tell us a little bit about your company. you don't have to be nervous. just make sure that you speak into the mike. >> good morning, supervisors. my name is patricia shardnmp er and the owner of s.f. parking l.l.c. and i'm the only l.b.e. in san francisco's parking street. and i migrated to san francisco as an undocumented 3-year-old with my family from my home country of el salvador and fleeing the savage civil war that claimed several of my family members. as a child i aspired to achieve the american dream and while recall are other little girls dreamt of castles and ponies i dreamt of being a business owner to help to better provide for my family. by the grace of god and hard work and the help of family and friends and organizations like the mission economic development agency and i have fulfilled my dream. >> supervisor cohen: i have a couple questions for you here. how long has the company been
around and established? >> since 2011. >> supervisor cohen: what other contracts do you have? >> well, we have our own parking management sites and we have the s.f.o. parking. >> supervisor cohen: so are you a san francisco-based business? >> yes. >> supervisor cohen: and -- and you said that you're the c.e.o.? >> the owner. >> supervisor cohen: the owner, okay, all right. and how many employees do you employ? >> i have six employees. >> supervisor cohen: okay. colleagues, do you have any other questions, anything else that you want to share? >> can i finish my -- thank you. i just -- sorry, i lost my place. although i have to have an additional job on top of running my business just to live and to be able to raise my two small children in such an expensive city like san francisco i'm optimistic as my future looks bright, especially with the mentorship of few south parking. and i'm getting my certification
outside of the airport contract. i have worked with new south parking since 2012 and since then and through the mentorship i have grown to manage the $12 million of revenue at the airport. >> supervisor cohen: how much? >> it's $12 million. but there's other things they helped me to navigate, like learning how to become an employee and enabling good jobs for my staff. or sharing the passion that i have for my community, like the work that i do in the bayview in have the arthur coleman medical center which thank you, supervisor cohen, for your support and your passion on bringing the legislation to make it an historical landmark. without your support we wouldn't have founded the clinic where it is and the direction that it's headed. new south parking has contributed to the center and they've gone above and beyond by holding job fairs at the clinic during an annual christmas toy drive and even donating a new van in order to provide access
to the clinic for those who are not mobile. in conclusion i'm excited about my future and my partnership with new south parking. thank you, supervisors, for your time and consideration. >> supervisor cohen: how did you become acquainted with new south parking? >> through colleagues in the parking business. >> supervisor cohen: and how long have you been working together? >> since 2012. >> supervisor cohen: all right, thank you. could i speak to the representative of new south parking. mr. newman, you're the attorney for the company? >> i'm their lobbyist, honorable supervisor. >> supervisor cohen: okay. and i'm wonder figure you happen to have their business license with you? >> i do. >> supervisor cohen: could you submit it so we can have it in the record with the clerk. one of the points of discrepancy in last week's committee meeting is whether or not it was a san francisco-based -- yes, san francisco-based company and when it became a san francisco-based
company. mr. newman, do you know how many folks have been hired from the community? miss rodriguez talked about a job fair on third street in the southeast of san francisco and i wonder how many people resulted in the hiring from that job fa fair? >> first of all, let me introduce the representatives of the partnership. >> supervisor cohen: sure, please, why don't you all step up so we can see you. >> jason finch, the senior vice president of west airport from s.p. plus, which is a majority partner. and this is wonderful joy riddle. joy runs all of the airport operations, general manager of all of the facilities and has been part of the airport family for quite a long time. >> supervisor cohen: good morning to you both. thank you. you can be seated. >> i believe that joy was saying
approximately 12 hires. >> supervisor cohen: come to the microphone and just answer about hiring. >> we were seeking security officers and we joined the job fair in an effort to get the people interested in coming to work at the airport, in addition to the security officer positions that we had, and we also had the ability to train them and to get them their guard cards. >> supervisor cohen: and how many people were hired? >> i believe that we had 12 that applied and they had to have a driver's license and so without having a drns driver's license y would not have been able to be candidates. so probably four or five were actually hired. >> supervisor cohen: in this drive function are they required to drive? >> yes, we have golf carts where we assist customers in finding their cars. >> supervisor cohen: i have been that person walking around a parking garage and can't remember where i parked. >> as have i. >> supervisor cohen: that's a very important function. i appreciate that.
>> thank you. >> supervisor cohen: and from your recollection how long have you been in partnership with miss rodriguez's firm is it. >> they joined our firm when we applied for the 2012 contract and jason finch and i went on the web looking for a local business. there were two companies that were eligible. we selected patty's company as the better company, we reached out to them, and they immediately responded and we loved their energy when we got together with them. they have been responsive numerous times when the airport has an urgent demand for additional staffing which we just had in june. we had a need for staffing for the traffic congestion planning that we're doing with uber and lyft and they provided a staff of 30 for us, and responsible and qualified and very customer oriented staff. >> supervisor cohen: thank you very much. you can be seated. mr. newman, i don't think that i have any questions. colleagues, any questions? miss widener can you step back
up for a second, i want to talk to you for a bit. first of all, i think that this is an interesting conversation and i am glad that i was able to tease it out more to find out exactly the details of new south parking. more importantly, if it were not through this whole exercise we would not have known about miss rodriguez and her partnership. i want to encourage the airport to continue to do a stellar job, let me rephrase that -- i would like you guys to continue to better your best. i think that there needs to be more outreach with l.b.e.s and n.b.e. businesses in the san francisco greater bay area, particularly paying attention to san francisco. i think that we need to do a better job of supporting these small businesses and not just throwing contracts to the larger and more dominant firms that have the ability, no disrespect, mr. newman, but to hire lobbyists and to hire lawyers to assist them with the overall negotiations, lobbying, and
contract negotiations that happen. i would like to see more of small businesses being able to profit and prosper when doing business in the airport. with that said the airport does have a very strong program, i think that it's one of the stronger ones when i think about city departments across the entire city and county spectrum but there's no reason to rest on our laurels when we talk about hundreds of millions of dollars of contracts. i have spoken to him on several occasions and has done a fairly decent job on being responsive and answering my questions. so i just wanted to publicly acknowledge him for his leadership and thank you for i'd say going above and beyond to make sure that i had the answers that i would need to move this item forward and out of committee. so thank you to all of the folks that have come to be with us today. we'll get to public comment. colleagues, before we move any further, is there any other questions? all right, thank you, miss cathy and we'll move to public
comment. now i have some cards here, doug parish and i have john nieman, do you want to speak in public comment too? no? and i have patty rodriguez, did you -- no, okay. all right, so if there's any members of the public that would like to come up and you have two minutes for public comment and you will hear a soft chime indicating 30 seconds remaining on the balance of your time. mr. parish? >> thank you very much, supervisors. i met patty here briefly this morning and it's interesting over the years that i have been in business here as a business owner here in san francisco that it always appears that small small businesses are often put in the same basket to compete with major corporations and it seems a little bit unfair how we come up here and battle against each other. i'm here this morning, actually, representing the san francisco
african american chamber of commerce. we have been contacted through our chairman, mr. fred jordan, to express our concern about potential companies that are outside of san francisco capitalizing on our opportunities that are potentially intended for small local minority businesses. so i think that it's just really challenging for us to see the decline of particularly african american businesses not getting these contracts. and, therefore, exiting out of this beautiful city that we claim that is inclusive for everyone to be a part and to stay in this city. it's very challenging to stay in this city if you do not have jobs and contracts. and that's what i'm here t
advocate for our community this morning. thank you very much for your time. >> supervisor cohen: thank you. next speaker, please. >> good morning, madam and distinguished members of this wonderful good hard-working board of supervisors. my name is benny yee and i'm a former commissioner 35 years with the state government and 13 years with the city. and i'm continuing to be a public servant which is i'm now the current active member of the professional association, and i'm the former president. and advisors to several groups
in san francisco chinatown. the my honor to be here today for two things. one, -- and i want to comment that all of you have supervisors have been doing outstanding jobs for a lot of years. and i hate to say that i'm sure that many in the audience here today recognizes the fact that our leader, the president of the board of supervisors, will be elevated out of the city to sacramento. and i hope that you will have a continued success. i'm here -- and another reason is for the minority small group local contractors. and i'm sure that you all members of the board understand how important that the local
minority contractors is and has always been there to emphasiz emphasize... >> supervisor cohen: thank yo you. thank you. next speaker, please. >> good morning, supervisors, i'm with the federation of filipino-americans. as a former executive director of a non-profit here in san francisco, i'm acutely aware of the struggles of small businesses and people of color in our city. and i'm here simply to ask you to please consider rewarding this contract to a company that has been here in the city for the past 23 years. and in that way we can keep the profit in the city and recycle it back to the economy. thank you very much.
>> supervisor cohen: thank you. any other members of the public -- okay, we'll leave it there and we will collect it and put it into the record. thank you, any other members of the public to comment on item one? seeing none, public comment is closed. colleagues, we have had a lot of discussion. i just want to let you know that we've got a copy of the business license for the record, everything seems to be apropos and kosher. i make a motion to move this item before the board as a committee report. may i take this without objection, colleagues? all right, without objection this motion passes. call item 2 and 3 together. >> clerk: the modification to the airport professional services agreement faith group l.l.c. to program manage minute support services for the airport security infrastructure program, not to exceed $15 million for
mother mod ifngdz of the modern siegz program. and item through, approving number 6 to an airport contract between faith groups and the sea for an amount to not exceed $1 $14.6 million for purposes for the airport security infrastructure program. and extending the term by one year and three months and not to exceed an amount of $16 million. >> supervisor cohen: madam clerk, i am informed by supervisor yee that we call item 13 out of order and so we will honor that question. call item 13. >> clerk: for the business and tax regulations code to have validation actions and statute of repose to june 2018. >> supervisor cohen: this is a quick item. so miss cathy widener and thank
you for allowing supervisor yee to present item 13. so this is an item that kickstarts a lawsuit response to the ballot measures c and g. supervisor yee take it away. >> supervisor yee: thank you, chair cohen, and president, chair cohen. and thank you for allowing me to take this out of order here. and this legislation would permit the city to bring suit to validate the proposition c and g which passed on june 5th. the reason for this is that opponents to those measures have expressed their belief that prop c and g needed a two-thirds vote to pass rather than a majority. such lawsuits would permit the city to rely on the funding from proposition c and g much sooner. and the board of supervisors will meet in closed session on july 24th to discuss this
potential litigation. and so i'd like to just end on that and request that this be forwarded to the full board as a committee report for july 24t july 24th. >> supervisor cohen: thank you very much. and i want to pivot to the city attorney to add comment to this particular item. i understand that since the revenue is legally tenuous that initiating this process will accelerate the settling of this matter? >> i wouldn't say that it's tenuous but as supervisor yee said that there's been questions raised by the opponents of the measures and we'll discuss that further in closed session but, certainly, allowing the city to initiate a validation action will lead to the quickest possible judicial resolution of those questions. >> supervisor cohen: all
right, thank you very much, and colleagues do you have any other questions, if not we can go to public comment. public comment is open for item 13, any member of the public to come and comment? public comment is closed. supervisor fewer. >> supervisor fewer: i would like to move it to the full board as a committee report for consideration for the july 24, 2018, meeting. >> supervisor cohen: celebrity. we take that without objection. >> supervisor yee: thank you. >> supervisor cohen: and back to items two and three and you have called them, madam clerk, thank you. so, miss widener, thank you for being patient. the two modifications for the airport is for an additional year, correct? >> correct. >> supervisor cohen: go ahead. >> they're both project management service support contracts. one is for our terminal 3 west and the other is for our acip, which is our -- our airport security infrastructure project. both of these project management
support services contract operate on an annual renewal through the approval of the airport commission and they are now reaching the $10 million threshold where they require the board of supervisor approval. and the modifications before you both on both contracts would extend the contract for a year. and it is also written in a way that would -- because we're so far into the contract, they will be annually renewed at the airport commission but it is at the preference of the committee whether you would like us to come back every year for future analyst. and both modifications and they leave it as a policy recommendation to you whether or not you would like us to come back every year. and it's worth noting that this is one -- sorry, these are two of approximately six to eight project management support services contracts that we have currently to support our capital
plan. and so we would be back quite often on these contracts if you would like us to come back for annual renewals. that is completely at your discretion. >> supervisor cohen: i want to hear from the legislative analyst office. miss campbell? >> good morning, supervisors. item number 2 would approve the fourth amendment to a contract between the airport and w.c.m.e. joint venture and to provide project management services for modification for the terminal 3 west modification project. this is first time that this contract has been before you and it's now slightly less than $10 million so it doesn't meet the charter threshold. and item 4 increases it to $14 million for going through 2019. and we do show the budget for the $14 million on page 8 and page 9 of our report and we recommend approval of that
modification. the future modifications that extend the contract for another four years through 2023, and we do show the budget -- the future budget for those on page 10 of our report. the total increase would be from $14 million to $60 million and we want to raise one issue here which is the original -- the way that the airport does these budgets is they actually do have a budget for the entire project that includes the contract services for project management. and the original budget was $48 million for this contract. it's now been increased up to $60 million. we did talk to them about that and they are saying that regulatory changes from the f.a.a., requests from the airlines, operational restrictions in terminal 3 have resulted in the increase. the total budget has a contingency that would be paid for this. we recommend approval of modification number 4 but
consider the future modifications without board approval to be a policy matter for the board. item number 3 is similar, the modification to a project management services contract between faith group and the airport for their security infrastructure program. this is the first time that this contract has been before the board. it increases the amount from $9.8 million to $114.6 million and we showed the budget for the contract on page 15 of our report in table 2. you will notice that we actually have a recommendation to decrease the want exceed amount by $880,000. and so we recommend the resolution to reduce the contract increase -- not to exceed amount from $14.6 million to reduce to $13.7 million.
and we recommend approval of the modification and we consider the approval of future modifications to be a policy matter of the board. >> supervisor cohen: great. colleagues, if there's no other discussion? >> you know, i think that we should accept the recommendation and fund these two item two and flythree, however, i think thate airport should come back and the charter says anything over $10 million in expenditures should come back for board approval and i think that is good fiscal practice. >> supervisor cohen: thank you. all right. let's take public comment on items 2 and 3, public comment is closed. a motion? >> yes, i make a motion -- items 2 and 3 to send to the board with positive recommendation that requires that the airport comes back with further expenditures. >> supervisor cohen: yes, i agree with that.
miss widener. >> i will amend the resolutions to reflect that we'll be back for current modifications and to accept the rejection of the $888,000 on item number 3. i'll get that to the clerk. >> supervisor cohen: so madam clerk do we need to take a motion to amend item three? >> clerk: correct. >> supervisor cohen: and accept the b.l.a.s recommendation and i am on the record to stand that the airport is on agreement with that recommendation for item 3. and then we'll piggyback on what supervisor fewer says and we'll send to the full board with a positive recommendation and we take that without objection. moving on, please call items 4 through 6 together. >> clerk: item 4 to authorize the office of contract administration to enter into the second amendment city contract agreement between the city and central computers to increase the contract limit to $14 million with no change to the length of the term with the option to extend for up to one
year. and item 5, authorizing the administration to enter into the fifth amendment to the contract agreement between city and the intervision to increase the limit to $32 million with no change to the length of the term with option to extend up to one year. and item 6 to authorization the office administration to enter into the 5th amendment to the agreement between the city and xtech with no change to the length of the term with the option to extend for up to one year. >> supervisor cohen: thank you very much. rob penning, are you here? there you are, front and center. take it away. >> good morning, supervisors, i am rob penning, with the office of contract administration. and we are presenting items 4, 5 and 6 today in connection with three contracts that form part of the technology marketplace and we have a brief presentation to provide you with context for the proposed amendments.
those responsible for overseeing the procurement of information technology products and services, to the same that the department has created a contracting mechanism called the tech marketplace that is used extensively to meet i.t. needs. and within the current marketplace they were selected by a competitive process and all contracts in excess of $10 million were approved by the board of supervisors in 2014. the existing marketplace has been operational for almost four years and during that time o.c.a. has allowed vendors into the framework to enhance the applied diversity and to expand the need for products and services. and it is important to note that the agreements within the marketplace are requirements-based contracts and this means that the vendors must compete against their prequalified peers within the marketplace for sales opportunities and vendors receive no guarantee that they will be awarded work. and all spending within the tech marketplace is goff other thanked by appropriations approved by the board of