Around the warriors stadium, you know, i hope, you know, when we voted for this project, i was the one that moved the item because i believed that it was more than just building a building, but it was lifting up an entire community, and i hope you dont forget that, because thats the reason why i vote for all these projects because its not just voting for something, its like how do you lift this stuff, everybody . By providing jobs and opportunities to people in their city. My dad, who worked in construction, many, many years ago, for dinwiddie, many years ago, he would take us and we would watch these buildings take hips. Im so proud that my dads fingerprints are on these buildings, and i think thats what we need to continue to do, and thats a promise of what was redevelopment and partnerships. Josh, thank you so much for joining us. I do have a couple of questions for you as it refers to the local hire piece, if you can come up. You know, when redevelopment was happening, there were many of us that were here, commissioner breed, commissioner singh, commissioner leroy king, commissioner covington, and one of the things that we pushed during redevelopment was local hire, and i know we got some push back from many people. And my whole response to that was the Redevelopment Agency, this is 100 resource. All were asking is 50 . So as long as you give San Francisco 50 of that opportunity, you can do whatever else you want with that other 50, and thats a good deal. Because remember with 100 city resource, we could ask for 75, 80, 90, but we said were going to meet people halfway. Im a little concerned about the numbers, and i notice in the presentation, we talked about good faith effort. When we worked with contractors and developers, is this 50 local hire goal, is it good faith or is it mandatory . Thank you, commissioner. Again, joshua arce, city build director. Thank you for the question, Commission Commissioner bustos, and to the question. I joined the city build program just over four months, close to five months now, and i can tell you based not only on that experience but having been to this commission several times going back ten years ago, really, and having this exact conversation about good faith versus mandatory, and different approaches to putting san franciscans to work, that the policy that we work with, this body to implement is a good faith policy. Its a good faith goal in contrast to the city goal. The ocii policy, i think is pretty eloquently laid out, and one of the reports is a local hiring goal of 50 , and that is he aa good faith effort to the parties to meet that objective. So but it seems to me that were having a difficult time at times of reaching that 50 . If we were to take good faith and make it a mandatory thing, how would that help us . Well, mandatory always gets peoples attention. Thats for sure. But i think one of the really important things that i want to stress is the positive and the important and the positivetive aspect of all of these things. I come to this field as a civil rights attorneys who had the privilege of working in the labor union, and i think when you look at whats happening with this industry, you dont have to go a whole lot further back to the report that the chief economyist gave last week, when we already have a constrained market for the labor construction, were really at ground zero here in San Francisco for that labor shortage. When you lack baook back at th numbers to date, you have out comes that a lot of city mandatory projects would be proud of. The Hunters Point shipyard is a good example, where youve got approximately 36 local residents. And then, where you have other projects, where you might have lower percentages. One of the things, i went back to this report, and i was struck by something, where you look at lets see. The previous six months, you had 1. 2 million hours of construction. You had 1. 27 million hours of construction in the previous time period. Today, you have 2 million, so whats interesting, we look at where were at today versus where we were six months ago, theres 55 more work. Now, we take that as an opportunity in city build working with ocii, our labor partners, our city build partners, such as abu, community builders, were always looking for new partners to recruit, make sure no San Francisco resident is left behind. These jobs, whether its good faith or mandatory, whatever it is, our job is to identify, recruit, train them with our labor partners and get them on the job. Our academy is kind of our flagship Training Program. Typically, at this time, wed be training 50 disadvantaged San Francisco residents for construction careers. Weve all seen numbers. We know that theres a labor short i cant imagi shortage, and theres two ways to look at it. We know that the city says theres 2. 7 unemployment. We can pat ourselves on the back and say weve done everything we can for unemployed san franciscans, but thats not true. We havent done enough for formerly incarcerated residents, for nonenglish speakers. We now have a partnership with chase, mortensen clark, to train up to another 40 workers. Weve got a partnership that was referenced in mariass presentation at glenn eagles golf course, so were trying to use this labor shortage as an opportunity to bring more san franciscans into the city. So i appreciate that, but i think as a commission, we need to look at good faith versus mandatory, just to make sure that what were asking is the adhered to. Theres a lot to that we can still do, and i think looking at formerly incarcerated individuals, giving them an opportunity, is a good thing, and again, give them pride that theyre helping build this great city. I appreciate your efforts, mr. Arce, and everyone coming here today and sharing your stories, because it is important. Thats what makes this worth it, right . Thats what makes being up here and seeing all of you worth it because were changing peoples living, and i love that. Thank you. Thank you, commissioner. Like i say were here to work for everybody. Were proud of these out comes. We can always do more, and well follow any policy thats put in front of us, commissioner. Thank you. Can i just have a follow onto your question. Hi, josh. Hi. Congratulations on your position. In this last report, and ive seen it consistently through the various reports, it just strikes me that the asian category, and i dont know if these are all San Francisco residents, but given the demographics of asians in San Francisco, 2. 9 in one column, 3. 3 in the other column, 3. 7 in i mean, it just it strikes me, are we doing enough to outreach to the Asian Community . Again, given the demographics of San Francisco, that seems like a short coming on the asian contracts. Well, thats a good thing to point out, commissioner. I was looking at the same thing, as well. I believe at that your attachment, its b3, and that has the race, ethnicity dependency s demographics of the workforce. Now, it does go up when you look at others. Others are who declined to race, ethnicity. Its a large percentage of if it you look at overall. The overall for any category is 30 poi 30. 5 . If you look at projects like the Hunters Point shipyard, candlestick point, its like 38 , so when you solve proportionall proportionately, its less. The point is, i think, to agree with what you said, commissioner, we can always do better, so we are actively doing we did a recruitment down in visitation valley, where we did a recruit for city build academy, without doing a big push, within language, within cantonnese, and mandarin. We did a recruitment with the media, with cbos and language, and about 30 folks came out, a number of whom went into the academy. I think the point being we have strong support from your agencies, george, maria, were all kind of on the same floor together, so were always thinking about again, how do we use the same opportunity, the policy that you have today, tomorrow, whatever it is, we treat it as an opportunity to make sure no ones left behind when it comes to these opportunities. Theyre plentiful, the numbers doebt te dont tell all the story, and like i say, i have nothing to report as [ inaudible ]. Okay. Thank you, mr. Arce. Thank you. Thank you very much. Congratulations on your new job. Im sure were going to be looking forward to some new meetings with you. Just add some color on the employment figures. In the last report, ken nim stated that the Unemployment Rate in San Francisco was about 3. 3 , 3. 2 . I pulled the most recent figures from the Employment Development department with the state of california, and it was reported that as of december 2017, the unemployment for San Francisco, redwood city and south San Francisco is 3. 2 , and there was an increase of about 4100 construction jobs from the december 2016 to december 2017 period, so about a 10 increase in construction jobs. But as josh mentioned and youll find in your reports, during this past six months, theres been an additional increase of 55 construction work that take place, so that just adds some additional color to the disparity between whats currently happening in terms of the actual work and the number of workers. And my only follow up to that and i asked it last time, and i did receive some data in response to my questions, that it wasnt the answers werent crystallized for me, and i dont know that we have the answers, and thats about looking at unemployment by industry, by neighborhood in San Francisco. So, i mean, sitting here today, i dont know whether its 2. 2 is accurate for the Construction Industry in each neighborhood, for example. Right. I tried to pull some figure from the last time, and i provided some strattics. Its rather difficult because it doesnt get that fine in granularity, but its true. Within the Hunters Point shipyard, the rates are higher than the rest of San Francisco, so theres no doubt about that. What proportion is higher, we dont know, but thats immaterial to some extent, because we do pay a large focus, as youll hear from josh, in particular on a lot of residents, and in tisk southeast sector. I dont want to weve already spent sometime on this, thank you for the report, thank you for the testimonials and the feedback because as commissioner bustos said, were policy makers. Were not in the trenches. I just love not hearing the stories, but the individuals coming up and telling the story in their own words. I want to thank our partners. Without our partners on all of our projects, i dont think we could be as successful on a commission. I venture to say we may be more successful in some regards than our very well respected sister agencies. I think its because we have more collaboration, more flexiblity in approximate working with our partners than lets say the airport or puc might. So thank you to all. My questions are just going to be just kind of narrow. I just want us to be thinking kind of forward thinking. One question is and it came up on good faith efforts, but it came up in the context of labor, and are in the presentation that we track or we expect good faith efforts from our partners. Can you quantify for us what it means to be, like, good faith efforts, because some people think, i think, good faith efforts mean making kind of flimsy efforts, but can you give us an overview of what that means in. Sure. I want to first state than from what i can gather in the ocii and the former Redevelopment Agency program is really centered around good faith in this respect. Its really bringing in private contracting into the public realm because if you look at the 3. 5 billion that is currently under our oversight, i can say that 99. 08 of that is in development with private developers. We only have within our portfolio about 6. 8 million thats contracted with ocii. So real so contracts arent just given to the Good Old Boys Network in terms of their friends, but publicly soliciting those contracts for open competition. So for us, good faith does mean an effort and we do religiously work with developers to ensure that their contracting opportunities are made open to the public. We do that by meeting with the contractors before solicitations go out, looking at the types of work that are being planned and the schedule, that type of work; and then, looking at the submittal document, the bid specs, or in the cases of r fq, the request for qualifications so to make sure theres unundue barriers. Maybe an example is excessive insurances or excessive years of experience, that type of thing that might pose a barrier. We help the developers to solicit those documents not only through our website but certainly through the citys website, and again, ensuring that the public has adequate notice of the solicitations. Theres at least a minimum 30day advertisement period so that folks can be made aware of the contracting opportunities. Theres a presubmittal or a prebid meeting that happens in between midway between where, again, you know, in a private contracting realm, that typically wouldnt take place, but under our good faith, its a requirement. And i can say that for certainty as a requirement. Each of the developers do cooperate with us for a presubmittal meeting, a prebid meeting. Questions are entertained, answered; and then, again, afforded enough time for the public to submit bids or proposals to the developers. What we also do afterwards is meet with the developers and the contractors, the general contractors to look at bid tabulations to look to see where bids might have come in or have come in, what the price spreads are. Again, we have a a first consideration for project area businesses thats been built into our program, so we certainly want to ensure that efforts are made towards that end looking, again, at first consideration of San Francisco of project area businesses and San Francisco businesses. And we look at that with respect to the pricing of the bids. I know that theres been mention about articles in terms of kettor not meeting or not receiving an award. I can tell you that what we look at, in terms of bid spreads, are that its within reason, even within our policy we talk about the fact that San Francisco businesses should be awarded if theyre not significantly higher. I can say that what we look at is what the city is a guidance of sorts. We certainly are separate from the city in terms of the sbe program, but we do use the city as a guidance in terms of their bid preference. The city does offer bid preference up to 10 , depending on the size of the contract amount. Whats notable is if the city does grant a contract from 10 to 20 million, their bid spread is only 2 , so we use that as a guidance, as well. [ please stand by ]. About how to increase capacity on the type 1 construction, because what i dont like is to have a report that says the report is basically the same as the type 1 construction because theres so little or so few capacitor availability because its a different type of construction. You know, once or twice, that story fits well with me, but by the fourth or fifth or sixth time, it starts really bothering me, so i think id want us to be proactive in terms of what solutions, bha creati what creative thinking, and we certainly have some creator thinkers in the room. I put that out there for the thought. I do have to acknowledge and thank the commission for looking at the joint venture and association and codifying it within our sbe program, because that has been good in building Small Businesses. Id just like mr. Acre to come up and ask whats your definition of good faith builder. I think that the process that mr. Lee from ocii shared, got a lot of similarities to the local employment side for local hiring. In a lot of ways, the good faith practices starts between the contractors coming onto the project and our compliant team, of whom we have one of our hardest working Compliance Team members here. Its the communication between the contractor and our Compliance Team that says were coming onto an ocii project, and we expect this many workers. Let have a back and forth process about maximizing the opportunities for local residents to strife to achieve at least a goal of a half local workforce. Now i was really surprised when i got on the job and was in the middle of these communications, and i think one of the places just to go, for example, we have a great deal of communications between mortensen clark, warriors, stubs, because i think that is starting a little more later in the pipeline. The creativity that were seeing is even more so elevated, so for example, the challenge you might see on a project thats kind of newer in the pipeline is we get a contractor coming on saying we need this many workers. We say great, lets connect you with some local workers, we call over to our partners with the labor unions, and for the first time with anybodys memory, we started experiencing empty hiring halls in some instances. The good faith is that communication is im coming onto a job, i need this many workers. Later on, i need this many additional workers, and every time we have that conversation with the contractor or city build, thats where the employment liaison side of the city build family gets involved. They living up with the cbos and Union Hiring Halls to identify locals in which case if theyre within the guidelines of their collective bargaining agreement, or local hiring agreement, they can make requests to hire on. So in everything that i just described in that back and forth is grounded in good faith. The creative is what you can added on, stuff that im excited were going to be doing in the summer with everybody back on the arena. Another round of training, which is really exciting and even some training before we get to the summer is kind of the creativity to to do what im saying, which is to identify workers who are still out there, bringing them in, getting the training with our labor and industry partners, getting skills to go out as local hires, and then having the communication to get them on the project. Everything that ive just described is what the good faith process is