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tv   [untitled]    August 15, 2010 9:30pm-10:00pm PST

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he had a $25 million construction contract to do all of the relocation. he gave 62% of that contract to small businesses, .and a large number of local businesses. statewide, , there are currently on a statewide level. statewide, they are getting to%. so you can see why our numbers are so off the charts. on a contract number three, we have only one hardball to go out. caltrans, that was 6.5%. contra four is the construction
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of tunnels, and we have been working very closely with theresa sparks on local participation, and we are currently at 17.56% of all dollars paid that are going to san francisco lbe certified business, and this is construction, and this is unheard of. we really want to push back to jose and the enormous whether they have engaged this, because it really is putting people back to work, keeping small businesses in, and on july 1, we had an event, and julie, if you
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could stand up, she is with a view. she and her husband had had an exceptional business. just like two seconds about your business, because this is how the rubber meets the road. >> i thank you for the opportunity to speak briefly about my business. my business is concrete pumping, which seems very odd for a woman to do that, but i love construction. i love seeing things constructed and put together, so i actually had an opportunity to meet paul at one of the outreach events, and i was one of 1500 people who were looking for work that day, and all of the general contractors where there that were on this particular project, so i had an opportunity to meet
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with every single one of them face to face and told them how my business could team up with their business, and i was very successful with that outreach event. i was able to get a contract with two, and this gives me as a small business, since i have been able to go to the outreach event, an opportunity to compete. i can now compete with some of the large contractors, where i could never do that before, and as a result of this particular business, the outreach event, and getting some of his business on doyle drivek i have increased my business by 65%, which is unheard of. we were also able to purchase equipment, so we now have two branyan pieces of equipment that we can place on the project and utilize them there, so it is a wonderful experience, and it has allowed me a great opportunity i would never, ever have had
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before. thank you, paul. >> well, commissioners, our message here today is for san francisco and to the commission and the board of supervisors. we are truly able to make success for small business, and we're becoming not just statewide but the national model, on how to do a successful program, and it is only because of the assistance of the commission, and we truly hope that -- to put more stuff on the website, it is all about your effort and your leadership, because a lot of these big government agencies do not listen to small businesses, so your voice is so important, and i really want to underscore, please, keep up the great work, because it truly matters for people like jolie and others, so thank you. are there any questions? -- people like julie. >> by heard what a difference it
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makes for small business, because of the contracts, but since the project is in san francisco, and i really would like to see more participation. can you share with me but some of your challenges are? >> sure. there were two phases. there is the engineering parts, professional services, engineers, architects, and so forth, and we have a much larger percentage of those contracts because san francisco has a large number of businesses. on construction, for instance, knoxville a lot of big equipment, very, very large pylons, when we can find them,
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weather is a challenge is competing price wise. we are paying a lot more. whether it is insurance costs or whatever, san francisco has a larger burden. we are competing against businesses and other parts of the bay area or california. a lot of businesses need a lot of room. she is on one avenue with a warehouse. then she has to put to her very large -- almost the size of fire trucks. that is how large they are.
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whether she is bidding on the central subway, mta, her competitors are in different parts of the state or in the bay area, and they can come in with lower rates, so we're trying to push as much as we can korean -- that we can. i am not trying to defend it. we do push as much as we can. we are only able to make recommendations. more than half of what the engineering estimates are.
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with say something was going to cost $98 million. a low bid, one came in at $48 million. well, that is great for the taxpayer, really, really great, but in reality, it is tough for the small-business owner. every dollar and every penny makes a difference, so the environment is very tough for small businesses, and i think that we are doing a good job. i think we could use more. i would really recommend it if the commission could even perhaps write a letter to jose, urging continued emphasis on this issue, i think that would be very helpful. i know that theresa sparks, that would be great. i know she has been doing some great stuff. i would not underestimate the power of your voice, so if you would like to see more, we would be happy to carry that banner for you.
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president yee riley: commissioner clyde has a question. vice president clyde: are tracking this could >> -- are you trucking this? >> they do not have hiring goals on this, but for the first time ever, caltrans and the mayor's office, they have budgeted and approved a work force devoted program. so rhonda simmons and her folks over there will be working in tandem to get more local hires on the same. we know there is a natural synergy between work force development and small business, so it is kind of three legs of a store, stool, -- haute three
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legs of a small -- three legs of a stool. the mechanism is there. they are working with the union and so forth. there is a good flow. >> that information would be very helpful, i believe, to us and also to the general public, as well -- vice president clyde: >> .we look forward to working with you to create more jobs. >> thank you. thank you, regina. really awesome. thank you. president yee riley: and just a note, in terms of our monthly e- bulletin, we have a highlight of
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the workshops. in monitoring our click-thropugh ugh rates, that is one of our highest. president yee riley: all right, thank you very much korea next item, please. should we go back to item number five? clerk: commissioners, you are now on item number five, the discussion and possible action to make recommendations to the board of supervisors on board of supers ivers file number which the board of supervisors by a number100865, an ordinance amending the san francisco
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administrative code by adding sections 106 through 106.28, to impose a fee and out of a beverage wholesalers and certain other persons to distribute or sell a college beverages in san francisco to recover a portion of san francisco's alcohol attributable and reimbursed health costs and to fund administration costs. the director will be making a presentation. org leading the discussion. we do or leading the discussion. >> the full commission heard this at the july commission meeting. the legislation and policy committee heard it on july 26 calm and at the full commission meeting in july, supervisor avalos had indicated that he was not going to schedule this as a budget and finance committee
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meeting until after the legislative recess, which would have been early september. then the commission was informed that he was going to need to schedule at least one hearing before recess, do timing issues regarding a measure on the state ballot but has now basically made a public announcement last wednesday that he was going to have, again, a special hearing, which took place today, to move a piece of legislation out of the budget and finance committee to have its first reading at the september board of supervisors meeting, and this is with his hope that the legislation gets passed and that it is enacted in the 30 days prior to the november election, of which it needs to be a fee,
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because what is on the ballot will also require a two-thirds vote. at the state level. so this escalated time frame was not something that i think the commission initially -- we were initially informed that there is going to be a little bit more of a time frame for us to be a to analyze and have some discussions with the supervisor's office. . be able to analyze. so there are some changes that i would want to review with you, and supervisor of the los introduced -- supervisor avalos introduced three key amendments that were heard at the special committee, so he is change the piece from out of mitigation to a " cost recovery -- alcohol
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cost recovery, note and then on page 6, the changes are that instead of copulating note it per alcoholic ounce, the treasurer's office in terms of doing collections dot on the matter have asked to have a change but 2 per gallon, and the fee will be established at the pump 0.3 5 cents per gallon for your, $1 per gallon for wine, and this was per gallon of spirits, and then the other item of note, the first payment will
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start on april 30 as opposed to january 1. and then, on page 8, 922, the biannual review, beginning with the fiscal year will begin note 2011. " instead of 2012. -- instead of 2012, so that means should a piece of legislation be enacted, there could be a change in the calculation. this was outlined in the nexus study. so next in your binders, you do have the commission's statement and we supplied to the board of supervisors after the legislation and policy hearing
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on the 26. a correction on that. the legislation policy committee hearing heard this on august 2. so what we have before us, commissioners, today, the board of supervisors budget and finance committee heard the matter, and i am quite pleased. we had probably close to 50 businesses to come out and speak. we're pleased to have that many businesses. the key message from these businesses was bottom-line costs and what this would mean in relationship.
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the budget analyst -- the comptroller has provided an updated report. this report was finalized this morning to reflect the changes in the different calculations. >> commissioners, that report is located in the back of your binder. so, perhaps maybe then taking the time to go through this in great detail, i know that many of you have had time to review this.
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do you have any particular questions on this? >> i do not have a question, but an however, it -- i have a comment. vice president clyde: what decreases we are going to experience. the losers on this. i'm very disappointed. >> it doesn't change not much, does it. vice president clyde: i feel the
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legislation is really not taking into consideration the very real financial impact.with small businesses, and the loss of employment, and it seems that it is putting a huge burden on the businesses. president yee riley: of the legislation and policy meeting earlier this month, we talked about some of the concerns we had on this legislation, the timetable as well as the cost commitment and also the competitive disadvantage.
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do you remember any more? vice president clyde: i know we spoke about the concept that this is a pretty broad nut for targeting chronic inebriants, and it could be brought down to focus on certain types of of all that seemed to begin shooting more than their fair share to the problems with chronic inebriants, like beimel liquors -- like the malt liquors. it would not be proceeding forward until other bay area counties would enact similar legislation, therefore making it a more level playing field for all of us. and then the cost containment. we all know what middle, --
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medical costs are like and the fact that every two years, this can be raised, based on the cigarette tax which doubled in one year. that he has been raised. we are very concerned that this could just be a constantly escalating costs for small business. plus, the fact that it does not address in terms of any programming or any money put aside for mitigating chronic inebriants. we would prefer to see at least some kind of part of this money allocated towards alleviating this problem, whether it is sort of just providing cost recovery it without really addressing the causes and how we might be able to address these in a more positive manner. i think those were all things we
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were very concerned about, and we still remain concerned. president yee riley: commissioner clyde, you have some concerns, as well. vice president clyde: at this point, my concerns are pretty well documented. it will be reviewed annually. this is a concern because the allocation of these costs according to the nexus study, it is caused some attributed to alcohol, and if you heard the department presentation, they are saying, and i have heard it echoed in the supervisors' chambers, that they believe that the costs attributable to of all
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are significantly greater, so that leads me to believe that this fee will be increased, and i would like to know about what the increase in costs will be after the givebacks that labor has agreed to, and i believe that is about 18 months. the comptroller's report does not contain the markup that the retailers would have to put on any recovery or their wholesale costs. this was per retailer.
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we are not getting the dollar value that is potentially in the add, i'm paying the state an additional 10% on that markup of the i also have to include my -- markup. i also have to include my costs of financial transactions, i have to include 2% to pay the bank. so, because most of our trngs actions are now on -- our transactions are on --ity and credit cards and those fees are continuing to increase with no sight of really abating. so there are people who say that this is really nominal and we don't understand it.
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why people are so concerned, but what they are not seeing is our having to do cost recovery as well and it is actually higher, so i would like the controller to control, you know, to factor those impacts in. i think we heard from the small business community that they are not -- they aren't -- they are not unconcerned with the impacts and they would like to work with the city. what we -- what -- but what we are facing ised inability to get in on the ground floor, developing policies and legislation. so, this has been ongoing over the past year, year-plus, and the small business community is being given a very short timeline in which to respond. so that is a concern.
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and, let's see, what else, what else do i have? president riley: you mentioned cost containment. vice president clyde: yes, i did, and i think that that is -- again, with the fees we've seen two years ago, fees were increased 25%. they were increased, you know, a year ago about another 10%. just using this structure is, you know, is a concern as well as the health costs. so, you know, a legislation that does not include some containment is, you know, really, you know, i'm not sure how responsible it is, and i am concerned about the jobs creation. i mean, we do have -- we do have what is being referred to as a jobless recovery and the jobs, you know, we are seeing
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that the people will have their incomes impacted. in fact, as i speak to several people who work in the industry, they say, sure, raise the prices, the customer will take it out of my pocket. you see people pull back on their gratuities, you see them pull back on their spending in general and really i think there's such significant economic damage that can be done just to raise a relatively small amount of money. you know, it really -- $17 million is not or $14 million, $15 million is not that much, but the economic impacts will be widespread. it will also drive businesses out, not businesses, but it will drive spending to the big box. i think that's the point that was not made really well in the, you know, as the small businesses spoke on their own behalfs, they didn't really bring this up. but when you look at it on a
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bigger picture, really the larger big box retailers are able to spread the cost of these fees across hundreds or even thousands of items and so they can absorb it and get, you know, and actually enjoy a competitive advantage within san francisco. and, you know, the safe way is the larger retailers. so it will undermine what we are repeating and repeating as a city, that we're supporting our small, locally owned businesses. and the shop local, spend local , you know, trying to really make sure we keep a level playing field, you know, this unintended consequence of actually advantaging the larger retailers and the formula retail is still a significa