Mandelman. Madam clerk, do you have any announcements . Yes. Please make sure to silence all cell phones and electronic devices. Speaker cards and any documents should be submitted to the clerk. Items acted upon today will appear on the october 1, 2f supervisors agenda. Can. Chairwoman item number one. Resolution authorizing the office of Contract Administration to enter into a First Amendment for marketplace purchases between the city and computerland to increase the total contract not to exceed 23 million, with no change to the threeyear term, with two oneyear options to extend. Chairwoman madam clerk, could you always read number two. Authorizing the office of the Contract Association to enter into a First Amendment marketplace purchases between the city and xjv. For a total contract amount not to exceed 44 million, to expire on december 31st, 2021, with two oneyear options to extend. Chairwoman thank you very much. And i believe we have lauren how do you pronounce your last name . Endigraphenfreed. Chairwoman thats a mouth full. Thank you. Is supervisors. Thank you for hearing this item. Im going to give you a brief overview of the tech marketplace, and thats when these contracts come from, and also providing you an overview of the structure, and things like that. Im going to give you an overview of the way weve spent the money so far under those contracts in the tech marketplace, and also providing you a focus on the way that the city and the contact Monitoring Division and my office has been working to get more of the local businesses involved in those contracts, and then in the second half, if you will, of this presentation, ill do more of a deep dive on the to contracts that were asking to be as amended. And so the tech marketplace is whats known as Computer Store in the 1990s. It is made of eight to nine firms, into something that, as my office has been doing, and for several years, has been trying to find ways to grow the tech marketplace, and to increase the number of firms that are actively involved. So i think what youve seen is over the last 15 to 20 years, weve grown the number of firms that are involved in the tech marketplace from what was once eight to nine formers, ifirms,it is now up to, and we have them competing at various different levels. It more or less acts as a prequalify pool of firms that can provide services in certain areas. For example, if you want to buy an h. P. Product, we have have products, and various other products. That includes both local firms and larger firms. Chairwoman so the departments are able to choose from this pool of people, is that correct . Yes. Chairwoman thank you very much. The main thing weve been doing is trying to ad transparency, and were trying to increase the number of local firms that have been involved in that pool. And so, again, this is really as a prequalified pool, that involves a rigorous process, and boo whic by which e firms had to submit a written proposal, and there was a round of oral interviews as well. So it was a very thorough process. At the end of that process, the firms were awarded what is what we call is a term contract, but it is a laymans terms in laymans terms, it is as needed contracts. This contract isnt for any one and specific project because at this point, weve given them as a blanket contract, and the departments will then come to us over the course in the last months, and theyll be doing it in the future, saying hey, we have this project we want to advertise to the firms that have been qualified in the tech marketplace. And so, again, this is used across the city, and were actively engaged with 60 plus departments in trying to address their needs. And, again, this has a range of opportunities that are involved, and there is a competitive and bidding process on all contracts where there is a there is a competitive and bidding process on all projects greater than 25,000. However, we do have it a little more however, we do have as a streamlined process involved when were dealing with the micro and l. B. E. S. And for those, we dont do Competitive Bidding until you get to 10,000. And thats to encourage the departments, if they can, to award the project to the micro l. B. E. S. And the basic structure i was talking about and the levels, the tier one are the larger firms. You have 19 firms in that tier, one of which has a joint venture that involves an l. B. E e. Firm. These contracts are the initial the contract of value was 20 million. The firms in that tier can do all of the products and services in the various departments. However, there is, as a hard cap, on the size of the project. If the project exceeds 2. 5 million, those projects must go outside of the tech marketplace, and we require the department to do as a standalone for those. So this is really intendseintendedfor the smaller. The tier two are the midsized firms, if you will. In that tier two, we have two firms that are primed by every Small Business here in San Francisco. They have because these are smaller firms, they have a smaller contract value, up to 3 million. But, again, it is basically the same. And the services those firms are allowed to provide, with the exception of the cloud services. And the third tier is the micro setaside, and thats are for small and local businesses, firms that have been certified, and the Contract Division we have 14 firms in that tier. And because of the there is, a a hard limit on those contracts, and the adman code says every 600,000, but i can tell you as my office, and partnering with the contract Monitoring Division in the last several months, have been trying to find ways to increase the size. [audio shut off off] in the last nine months, we spent approximately 72 million in the tech marketplace, which includes tier one, two, and three. But, again, there is a limit on the size of those projects, that you cannot spend 2. 5 million per project. But at the same time, we also wanted to highlight that this isnt a bunch of contracts im sorry, the same contracts these are a lot of small transactions. Weve seen 1,600 every 28 individual transactions with an average value of about 44,000. So these are a lot of small transactions, buying computers, buying software, and other things to support the various departments in i. T. And of those transactions, 80 of them have been awarded through some type of a competitive process. Where there was a bid received, there were proposals received, so this isnt just departments giving out the department or the projects to their buddies, their best friends, or the firms they like. There is a competitive process that supports all of those. And then of that of the projects that were awarded, and for 64 of that represents dollars, where theyre going through things where you couldnt have an l. B. E. Subcontracting goal. If, for example, you wanted as a Scheduling Software made by company x, you would thing bring that opportunity through the tech marketplace, go out to bid for it, for someone to procure that for you. And for Something Like that, there is not opportunity to have a subcontracting goal because youre buying a thing. However, if youre going through the tech marketplace, saying we want to buy a particular software, and we also need some services to help us have it be installed and programmed and things like that, if the services portion of that project where we get the l. B. E. S involved. And 35 or so of the spin weve seen so far this year is those opportunities to get the l. B. E. S involved. And that portion of the spend, the Contract Division has set a 15 goal for the l. B. E. S to be involved. Of the 72 million i was referring to before, the services portion of that represents about 25 million, and 15 of that would be 3. 9 million as a goal. The actual that weve been able to achieve so far has been about 12 . So, you know, it is not perfect, and were not quite at the goal yet, but were seeing from the l. B. E. Spend at the subcontracting level, were getting ever close to the goal. Now, the one thing that i would like to emphasize, though, we had 3. 2 million at the subcontracting level, and were achieving the l. B. E. Participation at the prime contracting level, when were dealing with the firms in tier two and tier three. So that being said, weve had as a 5. 2 million going to l. B. E. S in the first nine months of this contract. And weve had 3. 2 million come at the subcontract level for tier one. And 1. 3 million go to l. B. E. S in the tier two, and weve had every 600,00,000 plus go to the l. B. E. S at tier three. If you add all of that together and thats where we get in the total spend to the l. B. E. S over the first nine months of this contract of the 5. 2 million. And so and the contracts that are sorry. Chairwoman eye wantei wantedto ask you, what. Is what percentage of that same spend, from february to september . It would be 5. 2 million and the 70 million im sorry, math is not my strong suit. Chairwoman its kind of crazy. 5. 2 million, divided by 72. 3 million, equals 7. 2 . Chairwoman 7. 2 from the total spend . Yes. Chairwoman is the that up from last year . From the old contracts, i believe it is up. I can confirm that and let you know. Chairwoman okay. And because we increased the size of the contracts that the l. B. E. S were able to be involved in, they were originally on the old set of contracts, and they were capped at 100, and 600,000, so we have more opportunities. Before, the l. B. E. S, when they hit the 110, they were basically put on the bench and they couldnt get more work. Now were finding more ways to get them involved and any have to give credit to my team, who have developed ways to get l. B. E. S more involved. The ideas of saying were not going to have a Competitive Bidding for the micro l. B. E. S up to 110,000 things like that provides all of the incentives for departments to direct funds to the l. B. E. S. Just as a matter of practice, and typically as a contracting standpoint, you try to find the easiest weig way to go forward, and we believe that will have a big impact. Chairwoman thank you very much. So in the contracts that are before us this morning, were requesting an amendment to the contract to start. That contract, weve seen about 19. 9 million spending, and the bulk of that spending is associated it has gone through some type of competitive process. As you can see here, 87 of that, and 46 of that spend is associated with things that are considered passthroughs, which means that you wont see a lot of the l. B. E. Participation on that section of the work. However, there is a portion of that, 7. 10 million, the area in green, which would you see the l. B. E. S involved in. Of the 10. 7 million, there is a 15 goal on that and i think they have done a great job of getting the l. B. E. S involved. To date they have an l. B. E. Participation that is at 14 , which equals 1. 5 million. I also want to point out that x tech was a form her l. B. E. Thats what you want to see, a firm that grows out of the program. I believe because of that, and that the firm believes in the l. B. E. Program, and things like that. The next contract, were asking for an amendment to is the c. C. T t. T. Technologies. Were asked for an amendment because theyre getting close to the 50 spend on that contract today. The bulk of those contracts the bulk of the transactions under that contract were awarded through some type of bidding process. Again, it is the same kind of story where there is a large portion of that work done through passthroughs, but there is 4. 3 million that is available for the l. B. E. Participation. And for for them, it is even a better story. To date, weve seen 18 of the work that is able to be bid out not bid out, but able to be partialed out to the l. B. E. S. So theyre over the goal. I mean, so there is obviously a lot of money being spent with these firms. However, these firms are showing that theyre able to get the l. B. E. S involved. At the end of the die day, the thing were asking for is an amendment to these two contracts. C. C. T. , were asking for an amendment up to 3 million. And for x tech, were asking for an amendment up to 24 million. And thats really just based on the run rates that weve seen to date. However, thats just as an estimate. Because, again, as i was saying before, these projects were going to be bid out under a competitive process. And we dont know, over the next nine months, if it is going to go to x tech or c. C. T. , or some other firm. Thats it. Im available for questions. Chairwoman thank you very much. Lets here from the b. L. A. , please. Good morning, chair and members of the committee. This legislation before you would increase tease two Tier One Technology contracts, c. C. T. Technology would increase by 3 million, not to exceed the amount from 20 million to 23 million, and x tech will increase to 44 million. This is the Spending Authority allowed under these contracts. This would give sufficient Spending Authority through june of 2020. We summarize this in table one on page three of our report, and we recommend approval. Chairwoman thank you very much. This opens it up for Public Comment . Seeing no response, Public Comment is now closed. Any questions or comments from my colleagues . No . Thank youthank you so much. I just want to say thank you for taking the time out to meet with my staff and give us a deeper understanding what of these contracts are about. And i appreciate all of the incentives for the l. B. E. S, and this was something we were very concerned about in january with the 20 million contract. It seems as though were making progress. And im hearing from the b. L. A. That more likely you will come back. That it is more than 72 of the total spend. So maybe you can get that up higher. I would like to make a motion to move items one and two to the board with a positive recommendation. And we can take that without objection. Thank you very much, colleagues. Item number three, resolution to ap priewchg and authorizing the Mayors Office to approve documents to provide financing for predevelopment activities for the construction of a 100 affordable 137unit multifamily renting Housing Project, known as 4840 mission. Chairwoman thank you. We have supervisor safai with us. Im going to say a couple of words. I just want to put a couple of things on the record. This project, 4840, which is right near the balboa bart station, represents the first opportunity in the history of district 1t1 to do 100 of Affordable Housing. Were really excited about this opportunity. When i came into office, the developer had been chosen, and we looked at this site as an opportunity to maximize as much Affordable Housing as possible. Many of you probably know we went through a couple of rend ditions. Therrenditions. We were trying td the number of affordable units by partnering with a private developer on the safeway site, and it would have netted us an additional 75 100 affordable units on top of what you see today. But safeway unfortunately refused just for the record, safeway wanted five years of free rent. They were going to get a brand new store, and they wanted five years of free rent on the new site. The developer proposed two years of free rent, and safeway walked away. So thank goodness for sba 35, because for that legislation, we have not lost any time on the project. The Mayors Office and bridged were ablbridge were ablo back and working with my office, we were able to expand the units, and we netted an additional 123 units. And we were able to expand the footprint of the commercial space, on top of the nonprofit partner, which is Mission Neighborhood health centres. It has about 5,000 square feet, and they will move to this location and almost double their footprint, and include free dental care services, which sa really big deal is a rl four or neighborhood. There isnt that Service Currently available. And the construction type changed. Many of you know supervisor fewer and i were involved immediately in a citywide conversation about project labor agreements and modular housing and so on. Because of the design of this project, it changed from modular to the typical type of construction, that changed the Construction Costs greatly. And, also, over the last three years, and the b. L. A. Will probably note this, Construction Costs and labor costs have gone up over 30 in the last couple of years. So the size of the project, the total number of units, the footprint of the commercial space, the construction type, and, you know, i know this is a bad word to say in this chamber, but we did have to add some parking because in our neighborhood we actually have parking wars, and people get into physical altercations. Weve gone through a yearlong process of instituteding anofinstituting rl parking. Two projects down the street, which are privately developed projects, negotiated the ability to go up to one for one parking. This is far less than one for one. We added about 30 plus i think it is 39 spaces for over 137 units. The idea is that some of these families will have cars, that is a reality, and rather than impact the immediate neighborhood, well have them have this option. So all of those things together added to the cost, the time, the construction cost, the construction type, the size of the project, so we so excited about this. Weve gotten a commitment from the nonprofit partner and the Mayors Office that we should be able to break ground on this if all goes well, some time next year. Weve accelerated that timeline working wit chair anwith thechair and the committ, because there is eraf money that has enabled us to accelerate these projects. 4840 and upper yard are two of the highest priorities. So were ready to go. Were ready to build, and we really appreciate all of the hard work that the Mayors Office of housing and their team, and the mayors budget office, might staff, and everyone has been able to do to get us to this the point. I think the b. L. A. Did a good analysis on the project, and im hopeful that this committee will support this