OCII adopts SBE policy changes after workshop; staff directed to draft dispute and prompt‑payment language

The Commission on Community Investment and Infrastructure on July 7 received a six‑month performance and workforce review for OCII projects and approved amendments to the agency’s Small Business Enterprise (SBE) policy, with additional direction to staff to draft complaint/dispute resolution and prompt payment enforcement language.

Raymond Lee, head of OCII’s contract compliance division, presented SBE performance figures for Jan.–Jun. 2015. OCII oversaw 12 contracts valued at more than $283 million during the reporting period, with roughly $42 million in professional design services and about $241 million in construction and supplies. Professional services met or exceeded OCII’s 50% SBE goal (about 54.8%), while construction and supplies improved during the six‑month period but remain below the 50% target on an aggregate basis (staff reported roughly 38% SBE dollars for construction and supplies across active projects).

Lee reviewed ethnicity and gender breakdowns derived from public databases and noted some data limitations. He also summarized the agency’s workforce local‑hire figures: overall local resident hours were roughly 25.1% for the reporting period, with project‑area variation (Bayview/Hunters Point higher; Mission Bay and Transbay lower). Staff said construction workforce tracking remains a challenge given high local construction demand and the need for more micro‑business outreach.

On policy changes, staff proposed harmonizing OCII size thresholds with the City of San Francisco’s ‘‘small LBE’’ categories (recommended changes include increasing construction thresholds from $14 million to $20 million, suppliers from $7 million to $10 million, and professional services from $2 million to $2.5 million), adding specialty construction and trucking categories, and codifying definitions and eligibility rules for joint ventures and associations (the SBE partner must perform at least 35% of the work and receive a commensurate share of the contract). Staff also proposed minor administrative edits, including conforming prompt payment language to the state requirement (7 days) and renaming references from the former Redevelopment Agency to OCII.

Members of the public — including small contractors and trade‑group representatives — urged stronger protections for subcontractors and described instances where they said general contractors withheld payments or disputed invoicing. Several speakers asked OCII to track payments, protect small contractors from retaliation and consider mechanisms to ensure subcontractors get paid in a timely manner.

Commissioners asked whether OCII could require more frequent payment reporting (rather than waiting until project completion) and whether certified payroll could be used to track subcontractor payments. Staff said construction projects report certified payroll and that payment information is collected at completion, but acknowledged administrative and resourcing limits for earlier, project‑by‑project payment tracking. Staff agreed to evaluate and propose complaint/dispute resolution and prompt payment enforcement language and return with a draft; commissioners asked for a status update and draft language within 30 days if possible.

Commissioner Bustos moved approval of the resolution amending the SBE policy (resolution no. 43), Commissioner Singh seconded, and the commission approved the changes by unanimous roll call vote.