Transcripts For SFGTV Treasure Island Development Authority 20240712

Agenda item up to two minutes and be in a quiet location and speak clearly and slowly and mute computers or radio. Item 1, call to order roll call. Director tsen. Here. Director dunlop . Perhaps you have unmute. Sounds like hes having an issue with his tablet. If hes in the meeting he can see it. Go to the upper left hand corner of the screen theres a circle with an i that says event information and at the bottom theres an attendee i. D. If you dial in and enter that attendee i. D. When prompted you should be able to access the meeting by audio and hopefully it will merge with your panelist i. D. As well. Can staff people perhaps phone him or text him. If he cannot join by video can he join by phone . Yes, theres instructions i just gave where he can use audio to dial into the meeting as a panelist but in order to do that he has to be in the meeting to access the unique attendee i. D. Otherwise hell call in but hell end up as an attendee and appear as a callin user like the public. Those are the options he had because he used a tablet not allowing him to function with the meeting. If i call him on my cell phone and keep him on audio. You condo that. The aud can do that too. The Audio Quality may not be good but thats another option if you wish. Whatever works for you. It depends on how long you think it will be, everybody can stand by and as long as everyone in the public understands were trying to resolve a Technology Difficulty and be patient with us. Thank you for your understanding. We need him for a quorum of the meeting. It is essential he join us otherwise we cannot conduct the meeting because we wont have a quorum. [please stand by]. Commissioner knows joini joining those joining us from the public please be patient. Were working out some technical difficulties. Clerk hes on by phone so eel start roll call again. Item 1, roll call. Director tsen. Here. Director dunlop. Here. Director lai. Present. Director kwon. Director shifrin. Supervisor haney. We do have a quorum. Excellent. Well, welcome to the Treasure Island Development Authority meeting today. I hope everyone has been keeping safe. I know this is a new set up that we have here so i hope that we will all be patient as we work out all the kinks in it. But lets see, we can go on to the next item. Item 2 general Public Comment for all members to address the Treasure Island Development Authority within the subject matter jurisdiction on the board and not appear on the agenda. Public health will be held for each item on the agenda. Members of the public may address the members of the board up to two minutes and those would wish to call 4184911488 and when you are connected dial star 3 to be added to the queue to speak. Moderator, are there callers on the line . There are no callers. Before we go to the next item, i would like to give a welcome marian on the line with us today. We wanted to thank you for your thank you for your years to the Treasure Island Development Authority. You have a years of history i under the you want to retire and want to wish you well into requirement and hope for the best for you. I think others would like to speak as well. Miriam. Well be losing outstanding staff. Theyve been with Treasure Island Development Authority for decade. Its also sweet shes leaving on a high road and after some time we all need to move on to our next endeavors. Miriam, i know we are all sheltering in place but when the time permits we would like to give you a great farewell so residents and city staff and people youve had a chance to work with all these decades can acknowledge your hard work and bid you farewell. Its been an honor working with you and wish you well in your future endeavours. Thank you for your Great Service to the city of San Francisco. I wanted to highlight when miriam came to Treasure Island 14 years ago in the early years of the program when the city took over the base there was a perception the island was going to begin redevelopment very quickly so very little was done on the island other than the residential leaving program. So we had a large number of residents on the island and little else, commercial tenants. The program was also and from the time she arrived to a few years ago miriam was responsible for all on island programs and operations. She did a great deal to develop the community that we have today. As i said when she first arrived there was very little in the way of a commercial Leasing Program and little in the way of revenues. One of our first steps was to generate commercial interest in the island, salvage the buildings still usable in the early years a number of properties were neglected and beyond use at the time she arrived. And as revenues increased to leverage those and increase the services, public works and Capital Improvements that were undertaken here on the island some things instituted were the Summer Camp Program with the boys and girls club and camp mendocino and Resident Leadership Program and also bringing events and recreations to the island, the music festival, the Treasure Island flea market and most significantly for the residents, attracting retail opportunities with the Grocery Store and restaurants we have here on the island. If not for those improvements it would have been a long two decade for residents on the island. And she also took two interim position to lead other departments while they were in the process of searching for new executive directors. For six months in 2014 and 2015 she was the executive director for animal care and control and in 2008 for seven months was the interim executive director nor Housing Authority where amongst other things was the decades old civil suit against the Housing Authority and brought that to a successful resolution. I wanted to highlight for people not recognizing the work in the background thats been done her achievements and benefits shes brought to the island and residents. I believe mark wanted to say something. Can you hear snus hear us . And sharon. Go ahead, mark. [indiscernible]. Yes, we can. [indiscernible] she was truly part of this island. I cant wait to be with her on the opening day of the whole island. Take care. Sharon. You wanted to make a comment . Just a quick one, thank you. Just wanted to say thank you to miriam for all your dedication. It cant be easy for such a large redevelopment effort. Thank you for all your years of service and best of luck. Miriam, do you want to make parting comments . You need to be unmuted. Thank you. Just a couple words. Thank you, bob for [indiscernible] and theres so many people to thank. To my colleagues i want to point out we were able to build a core team and bring advisors sloong the way and there was a great understanding of the residents. [indiscernible] being an important partner. [indiscernible] and peter in charge of Public Safety issues with his background in the arts it was beneficial for the island. What made our Team Effective was we built consensus slooalong thy and we had challenges and issues every day we had to resolve it also provided opportunity to do creative things. We had so much fun along the way. We collaborated and tried and built and kept going. And the City Attorneys Office also supported and understood and help us along the way. Ive had a supportive board focussed on policy and its impact and allowed the team to be flexible and sharing their time and knowing the team was there to deliver for residents. Good luck. The future is here. Thank you, youve made a difference on the island and youll be missed. Good luck to you. Hearing no Public Comment, lets go [indiscernible]. First Public Commenter. This is Vice President of the Treasure Island museum and its with great affection and sadness the museum congratulates you on your environment, youve energized the work of tida and have been effective advocate for the historic heritage which you were honored with the Art Deco Society of california preservation board, their highest honor. In the last few years as part of the outreach and part of the Metropolitan Club and Millennium Tower you had an inspiring presentation of the sustainable plan and vision nor islands future. Its been an honor and inspiration to work with you over so many years. Well miss you deeply and wish you the best in your next endeavor. Caller whos number begins 924407. This is karen eddelman. I wanted to mention how much we appreciate the guidance miriam has provided trying to navigate the thrrs rules andiment and implementation and helping with the layers of decisions and how it will change the course of events on the island. And i appreciate her kindness and thoughtfulness of the people on the island and how every decision means something to them. We thank you for your guidance and for getting us to this point and celebrate with you as you go on to retirement and im sure many new adventures. Thank you for every moment youve given. Are there any other Public Comments . No more callers. Public comment is closed. Item 3. Clerk report by Treasure Island director. Id like to begin during last month we reported a survey of Treasure Island residents and received feedback and id like to give a report on the steps they have taken based on the feedback received and other programs at one Treasure Island. Good afternoon. Thank you for inviting me to share you will the great work during the covid19 pandemic. We created a Questionnaire Survey and it was put out to the residents of Treasure Island and i know you all heard about this and we got results. Based on those results were planning and weve been communicating regularly with our Island Partners to coordinate and collaborate island Wide Services and we continue services and are providing all services virtually and providing tax services and Construction Training Program which will graduate next week. A third of the class being island residents that were excited to put to work shortly after they complete their training. Weve updated our website to include financial and deployment resources in addition to food and other resources and have seen an increase in families and households best s and we i know about support to the Salvation Army with the food box distribution and the program started by supervisor hannys office and have been able to distribute masks also distribute supervisor haneys office as well as hand sanitizer. Were happy to support the Kids Meal Program. Its been pivotal in bringing the program to Treasure Island and continuing to operate it weekly. Shes been running the program and will do so until the end of the july. Thats what weve been doing. Going back to the questionnaire, weve formulated a plan based on the fodeback we got and feedback we got. Im going briefly describe some of the actions were taking and you all should have a copy of the Treasure Island Community Needs questionnaire response in your packet as well. So first and foremost, free food on Treasure Island. Again the food pant try and we pleased to report were entering our second week of the Treasure Island supper club for Treasure Island residents. Its an eightweek pilot providing one supplemental hot meal a week for Treasure Island residents and beginning last week we had 167 requests for meals from about 50 or so households. And theres no fee for the meal but people can pay what they can as far as donation and meals can be reserve the day before and were making arrangement to have meals delivered. Tomorrow well have our second week and i checked today and we already had 124 meal requests. That seems to be a much needed resource on the island. Were also listing city wide free food resources as well as paid delivery resources on Treasure Island. We also have a listing for senior and disabled services through the department of disability and aging and then a Meal Delivery program specifically for seniors were in the process of continuing to deliver household supplies and masks. Were partnering with island cove market who right now has a very nice stock of supplies and will once a month through the food pantry, one thursday a month well be adding extra cleaning supplies to the food that goes along. The first is on july 14th and well be distributing disposable masks, bleach with directions how to make your own clorox bleach wipes and your own disinfectant spray and hand sanitizers. The Housing Provider is also providing residents with supplies as well. Were very excited to announce were working with the department of Public Health to bridge covid19 testing to the island with the goal of bringing it to the island the last week of july. We also have financial and employment links on our website as well and are adding a jobs resource page. For those that may not qualify for our services but also live on Treasure Island theres a resource to get free links to get resume cover letters and link for job leads and job resources. Then we also have fact the internet and a big section on children and summer activities. Im not going to talk too much about that because i know the y will be giving an update and weve been partnering with the y to make sure were one, able to provide students with back to School Support resources and looking looking at what that may lock like and hoping to distribute some of that next month. And then the boys and girls club has camp mendocino but they are taking campers and last but not least they are providing limited services and they will be building up to as much as capacity as they can get. Theyre looking to hire more teachers to open more classrooms. Then we have rental support information on our website for rental assistance and lastly information about electricity and the puc is discussing some improvements. As you can see weve done a lot of work here. I want to shout out supervisor haneys office and tida and staff has been wonderful. Ill stop and see if anybody has any questions. Thank you very much for that report. We want to say how important one Treasure Island is and for the services you provide for residents. Thank you. I also wanted to invite the ymca to give an update on their programs during the summer. Theres things we wanted to do and ill break down the sides and weve been trying to figure out how to support family and residents and advocating for Treasure Island because thats where our home base is. When we first start and went into shutdown we offered essential workers for the ymca. Based on the covid guidelines we were able to serve 12 kids in a cohort with two staff and one main area and one bathroom so the space had to be adequate and so to june we worked with families to provide hot spots and it was for third grade and on and we tried to do something to make sure families had one hot spot or one smart device in the house for the Technology Start up. Families not essential workers who didnt get to go to the pop up locations we had google classrooms where they were able to get online and work with a teacher or whatever it may be. On the flip side we were offering other supports for the families. We created packets that focussed on social Emotional Learning and aligned with the district so if the google classroom and were rushing through the work and didnt have access to print and upload we would do the services for the family. We offered it at the same time as the Kids Meal Program and if the families needed additional printing theyd come to our site after picking up the food in order to make sure they were fully serviced around and getting what they need and that included additional markers or whatever was needed for the students to get their work. And we even uploaded the work to the google classroom for the families who didnt have access at home. We also had staff who would support the Kids Meals Program that happened every tuesday and friday were fortunate at the Treasure Island location to not have to furlough any of our staff because there were things we could continue to do to be active and in ymca and if theyre going to work or listed some restrictions we were able to extend our services to families. So it help lay out facilities where we have three fully functional rooms where we started with one. That alus us to have up to allows us to have 36 kids in the cohort in the building at one time with the staff and cohort. When we start the first one june 15 we started with 12 in the cohort and this current cohort started on july 6 we have 24 and for the one starting on the 27th of july we have the 436 enrolled. Were utilizing all the spaces. Though we have space in the gym its limited to how many rest rooms we have in the facility so we only have three individual spots so at max we can only do 36 per the guidelines. But we have families there and have an academy tied with sfusb and tide to the excel program. Originally was designed to help with the Summer Learning loss. At this point we have credentialed teachers who get on zoom and we set it up and support the kids. We just got 20 new chrome books at the facility well be utilizing with the kids and put in another grant to get that from the district and were trying to figure out technology so they can have something. We are not sure what the Fall Programming is going to look like. Theyre still trying to figure it out but it seems as if theyre going to continue to support this model. The model of having some youth at schools and some theyll lean on the cbos to give them a place to go for additional support. Were setting up one of the youth rooms with brand new chrome books, protected internet ensuring we have the services so the kids can come and get access. If theyre not at school theyll be able to come to the y to get services and support so theyre not missing out on too much more education. We have 24 youth enrolled and averaging 17 a day and if they miss they have to be dropped and with the 17 of the 24 showing up, we provide breakfast, lunch and supper and they get breakfast in the morning, a full lunch and then supper if they need it in the afternoon and the cool thing with the program is were also able to offer it to any youth up to the age of 18. They can come and pick up their hot meals during these lunch times at any point that works with them and they can come and get it. No identification needed just come and get it themselves. Thats a service we have available for any of the youth along with supporting the program and they condition also get a hot meal through the program were currently running. And to piggy back off that, tida is building an a hub where well be doing a full kitchen and theyll be able to continue serving the meal program once its up and running and offer health and wellness classes and Food Education classes and continuing to partner with pcyf so the island can continue to get as much service as possible. We have a program where they can go on an participate in the reading and do some Virtual Tours and Community Service and then the kids are actually getting incentives from that and at the end of the program they can get a brand new ipad to help their learning in the future. Right now theres a total of eight middle schoolers signed up and we have the capacity to serve up for 100. The more the merrier launching for the middle school. And theres options and they want to continue to enhance and tweak the kinks from the virtual Distance Learning and the next meeting for them if you want a preview july 10 and the meeting july 14. We have 20 chrome books and just put in a grant for another 50 so support the families who dont have this in the younger grades. And were currently participating in a Virtual Program where the kids can get on and where they have a skateboard or bike if they can learn how to do it and record themselves riding around the island or doing an activity and at the end theyll be able to get a brand new bike or skateboard. Weve partnered with this Organization Called rob Skateboard Academy for scholarships to be a professional skateboarder so the kids have access to that. Last thing on the youth side were working with looking to support the backpack giveaways. In the past we did School Supplies that were beneficial to programming. Were looking to see what we can add or how we can support potential Virtual Learning throughout the fall. And then when you go to the facility side with the 18 and over young adults or active older adults the ymca launched Virtual Programming anyone has access to. Go to ymca. Sa programming and they have yoga and tai chi and have selfrecorded selfpaced videos to figure out whats beneficial to you and your health journ yo journey and were preparing to reopen and in the meantime were focussing on how to support the youth and families and continuing to connect the community to the services we offer. All in all, thats everything were doing. Thank you, very much. As part of my directors report theres measures one Treasure Island and the ymca are undertaking. Having them report directly this month really highlights how much we lean on them to support us in providing services to the community. And we continue to in addition to the day to day meetings that take place to make that happen, we continue to have phone calls biweekly with all the Housing Providers on Treasure Island with regard to programs. Tida and one Treasure Island continue to provide information to residents and staff to current information from the San Francisco Health Officer on the covid situation and adapting to the most recent guidance for our own functions. We are working on a sitespecific health and safety plan for tida offices well be completing by next week and distribute that to the board when its ready. There was discussion at last months Board Meeting about equity policy and programs and the office of Racial Equity is leading a city wide effort to develop internal policies and programs and tida will be developing our information to add to the information for the city administrators office. In august we anticipate our august Board Meeting will be conducted remotely. And were going to allow the School Program to relocate from the ship shape to the y next month as well as allow the y to host additional programs in the future. A couple incident on the island of note on saturday june 20 there was a fire on the western slope of Yerba Buena Island that clings to the hillside on the western slope of the island. Theres a memo in the package from the summarization of the habitat damage and the report from the tifire department on t incident. And we have access reopened. July 1, the civic Ridge Program projects presented their work under the program to assist one Treasure Island to study the programming and massing of the 360 building to provide badly needed residential treatment and traditional housing programs. And they came up with good insights into how to organize and put that into place. And we continue to work with the office of Public Finance and controller department for the First Issuance of debt and well have an [reading itean item on the regu agenda. On the construction front cidc continues to make progress on the construction of new infrastructure on the island. On ydi the bristol project continues to progress and as does the work on the reservoirs. The San Francisco county Transportation Authority will begin work on the huge gate hill crest interchange between Yerba Buena Island and the west bay bridge and youth headquarters and we received notice this past month on the infrastructure Infill Program which will allow us to improve and widen hill crest between the interchange project and well work with the Transportation Authority on an implementation attorney general. Strategy. Over the last month the causeway traffic was reconstructed to the west side of the causeway and this coming saturday the avenue de palms will move into the planning for the stage 2 3 area working on logistics, demolition and utility relocations as part of that effort and the abatement work will continued this month and the segment along clipper cove has been completed and theyre installing that and theyll continue work through january. Were worked with the puc to distribute updates to residents on the improvements puc is undertaking as well as the progress progress in the switch yard location and the surcharge is complete and theyll complete the civil site work and they can proceed with the switch gear. On the litigation filed last january theres a hearing for august and that con cloud my report. Concludes my report. Do you have questions or comments . I want to congratulation congratulate him i know the board of instructions filled the grant its a big deal our staff and the project continue to define the projects. For people watching theyre residents and we have planting and you heard supervisor haneys office is doing that. And the city has the equity program. Ours is equity plus because if you look at the specific programs ours has been well established before the programs were talking about now in terms of the construction, training and graduation going on for a long time and Treasure Island is a model and you have youth programs. Im impressed the ymca is adding this summer youll add 17 kids. There should not be anyone on the island not aware of the programs here. Theyre well establish. What id like is that you mentioned about this equity report that theyll be submitting to the city, i would love to [indiscernible] and why is that . To make sure that all these wonderful programs that we are having are reflected in the overall umbrella of what we are doing here. Every agency with consultants and everything we need to showcase the wonderful programs here so the city can actually take our plan and some of the initiatives that we have ongoing and become a model for the city and town of San Francisco. I just wanted to say here that i am very impressed with this presentation and we need to have a way on the calendar to bring back some of the presentation because there is something called when you keep hearing it we believe it. We bring people in now and then and then dont hear from that and then have misinformation and misperceptions. This is the time to set the record straight. Thank you all for one Treasure Island and your staff and the ymca and our director and staff that we have from tida and congratulations to the commissioner. Krrgs commissioner you keep commissioner you keep every meeting accentuating on the needs of the Treasure Island residents. Thats what i hear you from and hear from our supervisor also. Congratulations to everyone. Thank you. Thank you. [please stand by]. It is something many families are very concerned about, including my own, certainly without the support of the strong c. E. O. S, families cannot return to work. It sounds like over the summer the y capacity is 36. With the new construction that tida funded, i am wondering if whether or not the expanded facility is anticipated to be able to accommodate the islands children needs in full, are we studying a gap we should address . For me, i think it is based on the the gym reopens because one of the things they are trying to prevent is intergenerational mixing. If the gym reopens, it will limit how many kids are in the facility because it would limit the bathrooms. With covid they want to subpoena par rate it. I know they want to separate it. We can serve more kids than that, but it depends on what that looks like. If we are on phase 3 we have the gym facility side. It would be Creative Planning like monday through friday for the kids, then on friday night a deep cleaning with the fogger machine and then we can open on the weekends. If the kids are there from 9 00 to 4 00 from 5 00 to 8 00, we could have gym time. It depends when phase 3 opens. That is where i am at. We thought about how to serve more, the entire community. We thought about doing something for packtive older adults, having designated times to use equipment and have people come in to keep them active, figuring out what that looks like. It is hard. Every two weeks it changes. First we were slowing down, now it is picking up. We are playing by ear. We can plan but two weeks later it might change again. A lot of other schools are looking at the range, the work case to get is possibilities. I would definitely love to hear continued updates from the y around your planning to the next school year, and also i want to highlight the important work that you are doing and providing and focusing on the social Emotional Wellbeing of children. That is something that has suffered the most, honestly, for kids missing out on school this last year and having social Emotional Development capacity at an early age does lead to well adjusted adulthood and important for longterm success. Thank you for your work. Any other comments from directors . Again, thank you. Your organizations show how important social Service Agencies like yours are for the health and wellbeing of the community. We are lucky at Treasure Island to have your two organizations there to help. I really think that these direct reports to us are really important. I have learned quite a bit from all of the things that you do. This gives us more details. I hope that we reef reports that we receive reports from you regularly. To the moderator. Any Public Comments . There are no callers. Bob, anything else to add . That concludes my report. Thank you so much. We will go to the next item. Thank you. Item 4. Communications from and received by tida. Are there comments from Communications Received . Hearing none, is there Public Comment. Hearing none. Next item. 5. Ongoing business by board of directors. Any items by the Board Members . Mark has a comment. Go ahead. The issue is part of the step down and the difficulty the restaurants are doing. [indiscernable] publishing the name of San Francisco restaurants that still deliver. There are two restaurants down there. It might seem little but these are difficult times so is there something we as a board can do or perhaps or staff . We really need to make sure people realize we are San Francisco, too, and those businesses could use a little boost. Thank you, mark. Marks concern is about ongoing support for the restaurants and Small Businesses which are on the island. Maybe, bob, you can look into it and report to us at the next meeting or do you have comments now . We have been trying to do all we can to support the restaurants during this period. We will certainly look at the chronicles website and try to get publicity we can for our facilities on the island. Any Public Comments on this item . No callers. Hearing none, lets go to the next item. Item 6. Could sent agenda. All matters listed here under are routine by the Authority Board and will be acted upon by a single vote. There will be no separate discussion of these items unless a member of the board so requests in which event the matter shall be removed from the Consent Agenda and considered a separate item. A, minutes of the june 10, 2020 meeting. B, Grant Agreement with the boys and girls club of San Francisco for day camp tuition for all on island youth residents for summer of 2020. C. Resolution authorizing the Treasure Island authority to execute documents necessary to file application under the United States department of Defense Office of economic adjustment defense Pilot Program and accept and expend funds in the Grant Application subject to approval of the board of supervisors and authorizes the Treasure Island director to to execute any documents to accept and extend the grandaunt the ceqa guidelines and chapter 31 of the San Francisco administrative code. So moved. Second by sharon. There was no items that the board wanted to discuss separately so we will act on the concept be agenda. First, moderator, any Public Comment ons the Consent Agenda . No callers. We will go ahead and take the vote. Director tsen. Yes. Director dunlop. Director lai. Yes. Director richardson. Yes. Four ayes. The ayes have it. Thank you. Next item, please. Item 7. Presentation on disclosure responsibilities for Board Members under the federal Securities Laws. Who is presenting on this . Mark from the City Attorneys Office is going to introduce the item and russ from disclosure council will do the presentation. Thank you. Go ahead. Hello, members of the board. Far from my appearance my haircut appointment is tomorrow. I am mark blake. I have been with the City Attorneys Office for about 10 years now. In the real estate and finance team. My area of specialty is Public Finance. I am joined today with russ from rose who will be the disclosure council on the issue answer of special tax bonds for improvement area 1. We thought we would undertake this training because the tida board will be a important link in the development of the Disclosure Documents for the upcoming bond issue. Just to give you a preview without taking too much of russ thunder. While municipal issuers like tida and city of San Francisco arent directly regulated by the securities and Exchange Commission, we are subject to the anti fraud provisions. When we go to borrow money we have to be materially accurate in our representations about our financial position. In this case we are going to borrow money for the first borrowing for the tida redevelopment. We need to make sure our Disclosure Document we develop is accurate and complies with the Securities Law. When local governments have been sanctioned by the securities and Exchange Commission, they have been criticized on two fronts. There are two things that the securities and exchange looks at. One, the substance of your disclosure. The quality of it, whether it was accurate, contained all information, and then whether it omitted Material Information. It will look at the substance of what you disclosed. As well it will look at the process by which you disclosed it. Who did you hire . Who had an opportunity to inform the Disclosure Document . Part of what we are doing today is recognizing that the tida board has Important Information with respect to the development of Treasure Island and your board might have input in the development of the document. The way this is going to roll out is that we will give you training today, provide you with a form of the preliminary official statement. While the board will ultimately approve and authorize going to market, the document will be recirculated to you and you would we would encourage you to, one, look it over to give bob back a call if there are burning issues that you want be to make sure are in that document, and you will have 10 days to peruse it. Anything as a board member that you have a concern about, feel free to call bob and say where is that discussed in this document and show me how we have captured it . That is the kind of import of what we are doing today. With that i will turn it over to russ to walk through the presentation material and feel free at any time if you have questions to stop russ and he will be happy to entertain and give you a competent answer. Thank you, mark. I think the key points of the presentation i want to go through slides and emphasize some of them in context. We will talk about federal Securities Laws, state laws apply as law, anti fraud and criminal law. To emphasize why the training specifically for such a broad group and High Level Group . That is because after the Orange County bankruptcy, the fec has staffed that the disclosure is primarily the issuers responsibility, particularly in the case where the issuers staff and officials themselves are in the best position to know the material facts. In your routine city or School District those are facts relating to the budget and the audit. You are the experts on your own finances. The other reason for doing this training is because it is the Attorneys Office and your outside council and us as special disclosure council we want to make sure if the fcc comes knocking that you have acted reasonably and training establishes the reasonableness of the procedures. As mark mentioned the securities and Exchange Commission doesnt regulate municipalities directly because of the tower amendment. They do regulate the bankers who purchase the bonds for resale to investors. In order for the under writer to feel comfortable in buying the bonds, they want to make sure in the mirror arrangement that the rules they have to comply with are satisfied in the drafting, careful drafting of Disclosure Document. Now having said that, just because the sec doesnt regulate you directly with some limited exceptions for fraud doesnt mean the investor cant come and sue the city to say the city contributed to the disclosure that cost them harm. The direct sec enforcement on the city of San Francisco is through the anti fraud provisions of the federal Securities Laws. What do the professionals do and staff do to ensure there are no problems with disclosure Going Forward . It really boils down to what is a very simple test. Imagine lawyers having a simple test. That is a question which i have on this slide under rule 10b5. The question is this. Is there any Material Information that has been omitted or that has been misstated that an investor would care about in deciding whether or not to purchase the bonds . I think that makes sense. We collectively provide a lot of information that is interesting detail, especially about a wonderful project like Treasure Island and ybi. There is a lot of more than fun facts people will be interested in. Not every fact is material. It is our job together with staff and City Attorney to sort out what do investors care about most and make sure that is not buried or hidden and makes sense. In this case, fortunately, facility district bonds, it is a special tax and risk to the special tax. In a different type of transaction like a sales tax, transportation issue, it would be the decline in sales tax that we are seeing because of the general economic dislocation. Each deal is differentis differo issuer and bond to bond considering what that particular set of investors would consider material. We mentioned anti fraud rules that attach when you produce a official statement to market bonds. They apply to statements made in any reports which are submitted to a National Repository annually. Those are quote rule 15c212 reports. The city has a process for submitting those annually. They are detailed, but the city is disciplined about making those reports timely and in a complete manner. That is because whenever the city files a report or issues bonds it is speaking to the market in an effort to borrow money. It is under the federal Securities Laws. Now, i want to run quickly through the responsibilities at the different level involved. Most importantly for today, the board responsibility. The criticism in Orange County after the bankruptcy from the sec team because the board had specific knowledge regarding its own investments and finances were at issue in that case, and the sec said and this is on the current slide 9 on the screen in paragraph b on the right side. Public officials cannot authorize disclosure known to be false or in reckless disregard of the facts. That would be true even if your disclosure council or staff said dont worry, it is fine. You cant do it. Look down on the page to see something that is wrong and materially wrong, you want to raise your hand and ask a question or say how does this need to be in context to make sure we dont mislead investors. The sec went out of its way because it is full of lawyers and they protect themselves to say the board cant just rely on professional advisers. That is sort of true and untrue. There is a defense of co un sel. It is pardon to prove. It does go to reasonableness if you have taken the appropriate steps, gone through training. We did everything we could, if the disclosure is defective we didnt act negligently or recklessly. So on the next slide in the primary offering process and here we are talking about the official statement put together when the bonds are actually sold. You wayou want a reasonable belf that one the content experts had an opportunity to review the statement. There is a history here. You want to make sure folks have understood what happened with the navy. How did the cleanup go . Is everything the way it is describe understand the official statement . Secondly, make sure the staff is empowered at all level to examine information to be provided by investors. The more they are empowered to do their job, the healthier disclosure process you will have. Then if you are aware of a material negative trend that investors might care about but not in the official statement, you also want to ask a question. Sometimes it may be obvious to you, particularly those who have been living with this development for a very long time and are expert in the development, but not as clear to those of us in other parts of the state or in other places or different knowledge level. For example. The other day we asked ourselves internally is there a plan to get people off the island if there should be damage to the causeway . Is there arrangement with the ferry system . What would they do . That is sort of kind of like one of those things in the shower. There might be some disclosure to talk about. You may have thought through it in detail over the course of many years. I dont know if that is a real example or not, but keep an eye out for trends. Any red flags or things to bring up to staff, dont hesitate to raise your hand. Moving along. I want you to know that staff at the city and all level has undergone Securities Law training. They understand quite clearly especially in the Controllers Office that they have a personal obligation to ensure investors provide complete and accurate information. They dont take it lightly. They havent left or abandoned the board of supervisors or the tida board or outside consultants when it comes to primary disclosure. They are appraised of their responsibilities and know disclosure principles. I will leave this slide with you. It is in your agenda package. Staff has received these key training principles and many others. This question often comes up at city council level. You may have it as well. Can i simply rely on staff and professionals . We understand that. The cost of issuance includes dollars for outside Financial Advisers and lawyers and everyone does the best to serve clients well, at least the teams hired by the city, i believe. And the answer is, yes, if done reasonably. There are caveats listed here that are most relevant to you. Do you have a basis to believe in the integrity of the professional . That is a simple question for the Controllers Office or mark blake. How did you go through the hiring process . Are you comfortable with the firms you retained . Are they known leaders, recognized nationally . I will leave the rest of the slide for you as well. But i do want to emphasize your city has strong internal disclosure procedures, written policies which are available through the controllers website for review. The staff receives regular disclosure training and the citys team is very comprehensive including city and tida staff, City Attorney and his colleagues, municipal advisers. Usually there are several advisers involved on different deals, they are a diverse crowd of advisers. In terms of the size of the firm, experience, race, gender, age. All of that is helpful. Everybody is seeing a differentr side of the market which is 3 trilliondollars. It is a very large market with a lot of disclosures available to review, and this Team Including ourselves, disclosure and bond bondcouncil are experienced. I am at a large firm myself and my colleagues that serve the city only do a lot of disclosure work. I would be happy to take your questions. Thank you very much, russ, for that. One question that i have has to do with the individual liability of tida Board Members. What exposure do we have . It is a very complex project. On this board which is primary policy board we cannot no every detail that goes on in the many projects on Treasure Island. What individual liabilities are there for Board Members on any of these disclosures that go out . You have to unmute yourself. I will start and then maybe mark can jump in as well. Generally speaking, the certificates are signed by the knowledgeable staff that are most closely involved with the development of the disclosure, and in Board Members are insulated to the extent that they took reasonable steps to approve the disclosure along the lines we discussed earlier. Most boards and i assume your board has the insurance as well. I will leave that to staff and mark if you have similar questions for board of supervisors or other city boards, i would like you to weigh in as well. This question has come up from time to time. As a technical matter, Board Members would be subject to as a matter of law, civil and criminal liabilities for Securities Law violations. With that said, to date no board member has been subject to sanction for miss statements or omissions. No legislative body board member has been sanctioned. The reason that we have the processes, we go through the training is to ensure those defenses are availability if it should come to pass. We have, obviously, dnl insurance. To date it is Staff Members not Board Members that have been sanctioned for miss statements and omissions. The sec realizes the real drivers of this prove process ad those close to the representations are Staff Members and so that is to date where the real liability has been. There is technical exposure if we willfully blew through the processes. In the normal course that is not something you need to be terribly worried about. Thank you. Linda. Thank you so much. I, obviously, this is the first time for tida. I spent days just gu digesting. My disclosure you have produced a comprehensive report outlining all the different categories. I have some basic questions to ask you for the City Attorney and also the board council. Three or four questions. Then you can respond to me. Would you like me to ask a question and you respond . How would you want me to do that . Go ahead, linda and ask the question. To piggyback on the liability for individual, it seems to me that the two primary entities are the investors and also the homeowners. From reading of documents those are the two entities that i saw for miss statement or anything would trigger liability. You can help me. The other thing is that i think for the sake of the public that it would be great, maybe one sentence or two to differentiate or educate the Public People that have not had the privilege to look at the depth of information that we have just been presented. Number one, we know that property tax, city and county of San Francisco municipal area have property tax. Now we are talking about facility bonds which are a new type of financing for the project we have on Treasure Island. It would be great to differentiate, to tell the public what we are talking about. For instance, the resident of Treasure Island being San Francisco residents in addition to the special tax facility bond they are also going to be obligated for all of the other bonds in San Francisco, the muni and i think those clarifications would be great. I saw in the table of the principal and the interest in the document that we have there is kind of works in progress that are sometimes that information would be identified what the principal and given that this bond is from 20202050. I would need a little information. Then looking forward to forwardlooking statements, there are a lot of things that we identify, and especially natural disasters. Some we cannot foresee. Metro disaster. I dont know when the next earthquake is going to happen. There are certain conditions. I also saw where covid id is now part of this disclosure. What kind of information are you going to include in those kind of disclosures because it is a new entity because of that . Lastly, i know the city and county of San Francisco in the past at different times have had bond measures or whatever. A lot of the information you disclosed are generic. Is there anything in particular for Treasure Island for this particular bond that isdeviiate from the norm so we have a special category to disclose. Those are my general statements. I want to thank you for that comprehensive document. Thank you. Mark, i can start if you want to give you time to fix anything i miss. With respect to homeowner liability, there is not liability on the bond securities liability. There is responsibility for those who are subject to the special tax to pay their special tax. Those are the revenues that secure the bonds. Not any of the citys other money, which is important. The difference here between this and some of the other city deals that is very important and that is disclosed is the plan. I dont belief this cfd is on the teeter plan. We disclose that. Otherwise the risks that you would see in the city general Obligation Bond issues relating to seismic concerns and other Natural Hazards are important here if they could interfere with the collection of special taxes. One of the citys general risk factors is cyber security, like all major entities and companies. If there is a disruption in computer systems, that can potentially be an issue. Investors are generally aware of the risks. The ones we consider most material, we include specifically in the document. Some of those are forwardlooking statements, statements that folks think are accurate but one thing about a prediction, you are guaranteed to be 100 wrong every time because there are slight differences in the future from what you expect in the present, unfortunately. In terms of the blanks. A good board question. Thank you for asking it. The development of a financing like this proceeds in stages where the authorizing resolutions for the board of supervisors contain not to exceed amounts that apply to Interest Rate level, Principal Amount of bonds and underwriters compensation. The attachments to those have blanks because those final numbers wont be set until we price the bonds, which is that moment in time when the underwriter goes out to the market to find out what people are willing to pay, and after negotiation with those investors they set the Interest Rates. The Interest Rates together with the board set parameters come together to yield a sources and uses of funds, which is what we willewewill add to the disclosue document later in the deal. What did i miss, mark . On the first question about the tax disclosure. There is a and i think russ is distinguishing between disclosure to investors and that is when we disclose to investors source every payment for the bonds and for Property Owners there is a whole another set of disclosures to go to them. If you are a purchaser of real estate in Treasure Island subject to the special tax, the fact your property is subject to the special tax will be disclosed to you as well as your additional obligations for proportion at share of the school and Community College district. That will all be disclosed to you. The developer developers are seo the special tax that has a drag on development. We dont see a lot of cfds in california. We are starting to see them more so. Cfds are a artifact in southern california. All of the property Tax Information will be disclosed to property tax buyers, to buyers of real estate within the district. They will know what the overall burden is, and i think that we have cfd policies to really try to structure the cfd with an upper bound on the overall debt burden or tax burden on taxpayers. The document that has been submitted to you today is a form of the official statement. That document will probably go through two or three or four more drafts before it returns to you. We need the blank and that will be filled in. Everything will be filled in except for pricing information. That is the final. It will be substantially final when it comes to you and we will price the bonds. That information will be filled in. When it comes to you the next time, it will be in the form that will go out. That is the form we want you to peruse to make sure something doesnt jump out at you that you think is materially inaccurate. With respect to forwardlooking statements which you asked about, our obligations in developing the Disclosure Document are to describe what is the contract to investors and to provide a context for investments in the region or in this case the cfd. When you talk about natural disasters we are talking about earthquakes. We give investors a heads up among the things that could be a risk to your repayment or not only the fact this is Real Estate Development so real estate goes up and down, people pay property taxes when times are good and not when times are bad. We describe that but we describe pandemics. We will describe the environmental risks that are a partly cloudare peculiar stor. We will talk about stability of the island and disclose all of those things peculiar to this credit, investment and try to do it as accurately to the best of our ability. That is kind of the structure of the document. I dont know if that is responsive to your question. Thank you. That answers my question. Sharon, do you have a question . Go ahead. I am going to start with the easy one. What is the timing of disclosure review . It sounds like several rounds before it goes to our review. What is the expected current timeline, bob . So at this juncture we plan to close in early october so that the document that will come to you will be around midseptember, that timeframe. The board the board of supervisors will authorize the issue and shortly there after the document will be presented midseptember is when you will see this again. We would have basically a week or two weeks to comment on it . I think we are planning on 10 days. If you think that is too short, give us feedback. We are trying to give enough time for you t to peruse it. We are not saying that you need to read it in detail as much as peruse it and arrange for staff walk throughs to make it easier. Whatever we can do to facilitate it. We will provide a 10 to 15 question answer about the financing. What is the issue . How much are we issuing . What are we financing . What is the repayment . All of that will be in the cover sheet to guide you in your review to make it as easy as possible. That is very helpful. Thank you. It is a new document for us to review with 100 some plus pages. It is a lot of content. I would suggest about lets think about a way to keep with the brown act regulations but some sort of path for tida board to ask questions directly with mark, the City Attorney or whoever is in charge, and then can you advise us a little bit about what is the best way for us to document our questions and comments . Should that happen in the public forum or just in writing . Obviously, it is on the tida board. We have a responsibility to raise questions like you stated. We just want to know the best way to do that. I would say that i think the efficient way to proceed is to direct all of your questions to bob. Then bob to the extent there are questions that are legal in nature, he can refer those to us and we can be response i to the extent they are financial in in nature bob and his team can respond. It is the question and the answer and i think you have discharged your responsibility. Thank you. It there a requirement for an official approval of the offering statement . There has to be an official action or is it enough to review it and give comments . So the board of supervisors will authorize us to proceed with the distribution of the document. It will delegate to bob and the controller of the city to finalize it to make sure it is accurate. We are basically circulating it to you as being in the chain of the disclosure process to give us any last minute this came up, i heard about it, did you disclose it . There is not any official action by the board as a whole . No. Thank you very much for that clarification. Do you have another question, sharon. I want to clarify the role that tida board has to play in this. Are we part of the Financial Institution . It seems like some of those are already in place. The document is pretty far along. I definitely recall bob mentioning to us about the bond issuance timeline in prior updates. I dont recall ever taking action on putting the bond Issuance Team together. I dont know what our responsibility there is in. Here is the how our thinking evolved. The board of supervisors is the governing board for the cfd which these bonds will be. As we were thinking about disclosure process, we were thinking about where does the tida board fit in the development of information . In thinking about it if we had gone to market, issued bonds and there was criticism about disclosure, we would be subject to the question of well you have a tida board, what was their role in your process . We did not put it before you so that you could inform that document. We are trying to close that exposure and so giving you an opportunity to inform the document, i suppose. Then my last we is qualitative. I am trying to understand in the scheme of your bond, Municipal Bond experience relatively speaking. There are a lot of different structures and bond types out there. As it relates to the current version of the structure we are issuing a bond related to the cfd. How risky of a bond is that compared to the spectrum of all of the bond issuance that you see . I will comment and then i will let russ comment. In terms of the order of secure bonds, general obligation are most secure bonds, secured by taxes of the city. The full faith and credit of the city. Then Revenue Bonds associated with enterprises. The water, sewer. Then you get to the airport, which is the next enterprise. To the extent they are uniquely subject to travel. They have their own risk factors. Then we have land secured, Land Development bonds. In an area like San Francisco, typically that has been a good bet. Property values only go up in San Francisco and not down. They call these dirt bonds. Dirt bonds have risk factors associated with Real Estate Development. From that standpoint they are not as secure as general Obligation Bonds, not as secure as the mature enterprises. To the extent that Treasure Island becomes a mature development, housing established, commercial establishments, mature and ongoing. These initial ones are a little more risky than a mature development. I dont know if you want to weigh in. No, i think the only point to mention is that the other bonds mark mentioned arent rated by the National Rating agencies. These cfd bonds when they are new are enterated because there is not a are not rated. There is development, risk. That is why the document is 100 plus pages. There is an awful lot on the quality and how far along they are. Investors in this sector are very familiar with those issues and those risks. They know a developer that just hospitalizehopped up overnight a large shelter. These are unrated bonds and they are based on the story told in the official statement about the development and the people involved. The companies involved. So given the complexity of Treasure Island history and the Development Project itself, is there anything like process wise that you think tida should consider in minnesotaizeing the risk such as preemptive decision or determination by courts or anything like that . That is my last question. Of. There is nothing in the legalstruction tur. I dont know if you have seen the court validation process in other bond issues. That is not typical of niec thee tried and true structures. The credit is Different Development to development. As you dig through the document, a lot of it is summary of legal documents, risk factors which the city develops and in only certain sections focus on tida and information in your knowledge relating to the island itself. An awful lot of it is relating to the developer and development itself and the Technical Details of the bonds. One other thing, one of the metrics we built into our cfd processes is a value to lien ratio. I believe that metric is three to one. That is the conservative metric that at least is the bond holders comfort there is enough value to ensure they are repaid on the levee of special taxes. I was going to add on the question of like the validation action. When we formed this we formed irfd. There are few irfds formed, we did take a validation action to the court to validate the measures we had taken to form the irfd were consistent with the law. We did do that in the case of the irfd. It wasnt felt to be necessary for the cfd. On the role of the tida board and tida on the debt issuance, when we formed the two we came to the tida board for approval prior to submitting that to the board of supervisors for authorization, but as mark alluded to under the cfd it is the city that takes the action to issue the debt. The Controllers Office and the office of Public Finance are the team that put together the consultants and so forth to analyze the debt issuance and administrator it. The lead is really within the office of Public Finance. Tida staff and board are supporting that as they are issuing the debt for our use for the programs use. Thank you very much. Are there any other questions . If not we will take Public Comment. Any Public Comments on this item . No callers. Thank you. We will go to the next item. Thank you for the information. We look forward to commenting on the document as it comes to us. Item 8 resolution authorizing the adjustment of fees for utility users on Treasure Island and Yerba Buena Island. I will hear from bob and then the director and Public Comment. Go ahead, bob. Thank you, directors and members of the board. Bringing this item back with further explanation after our discussion at last months Board Meeting. Tida became responsible for the operation and maintenance of utilities on Treasure Island after the closure of the naval station and the city entered into a caretaker agreement with the navy to operate and maintain the utilities and infrastructure here on the island. That was a mess precursor for the navy then entering into master leases with the city to utilize the Historic Housing on the island, the Historic Buildings like one, two, three, and eventually oner facilities that were leased through the commercial Leasing Program. The caretaker agreement allows tida to collect utility fees if from the coast guard, job core center, navy who maintains offices in building one and utility users on the island to offset costs of providing Utility Services. Tida contracted with the p. U. C. With the crews to perform the physical operation and maintenance of the utility infrastructure. In terms how utility fees are assessed. Many of the properties on the island are metered. Including the coast guard campus and job core campus and most of the commercial buildings and the sfpuc invoices those meters and customers for the recorded usage. The residential units are not individually metered. Housing providers are assessed a fee based on the aggregate use around all of the units. Sfpuc invoices Housing Providers for the number of occupied units that they have. Those utilities or actual residents of Treasure Island utilities are included in rent. Residents of Treasure Island do not pay a utility bill. As the costs of Utility Services are adjusted, Housing Providers are not able to pass those rents through to their tents. Our market rate property manager of the villages, our agreement with them limits the increase in annual rent increases to the amount put forward by the San Francisco rent board. It doesnt provide any passthrough opportunities. In terms of the p. U. C. S operations of the systems. They maintain the gas, water, electrical infrastructure on the island. The primary costs provided the p. U. C. Provides power generated at the dam and other facilities in the system and provides water from the reservoir to the island. The p. U. C. Also procures gas in a contract for citywide demands and that gas is delivered by pg e. The p. U. C. Maintains th the infrastructure on the island. The p. U. C. Operates and maintains the wastewater and stormwater collection systems including the Treatment Plant and 43 pump stations. There is no commodity and the primary operating costs are labor. Also, because the revenues with the p. U. C. Collects from providing service to other users in the city are regulated, they cannot use those revenues to maintain the systems on Treasure Island because they do not own those systems. As we dilled mu infrastructure dedicated to the p. U. C. , the p. U. C. Will become the Utility Service provider to the new homes on yerba bueno. In this time all of the costs for maintaining and operating the systems need tracked separately and reimbursed by users on the island and tida. We meet with p. U. C. Periodically to review costs and recommend adjustments in the fees. As we have adjusted fees over the years, there are certain things that we have not built into the rates but have funded directly out of the tida budget. The cost of emergency repairs, obviously. Emergencies are unpredictable. It would be difficult to build into the rates what those costs would be. Also, we had over more recent years had to undertake a number Rehabilitation Project on the system and to address the age of the infrastructure and building those projects costs into the rates would have increased the rates too much. We have elected to fund those directly. Those include various projects we had to do at the waist water Treatment Plant and pump stations. The environment with wastewater is corrosive to concrete and steel. Those facilities are at this point well beyond useful life. The projects that we are currently under taking to install reclosures on the electrical system and past lighting on the island we have paid the p. U. C. For those costs. All costs associated with the navy work on the island or redevelopment activities are excluded by the rates and would not be appropriate to pass to the users on the island. In terms of past history of fee adjustments, the water, gas and electric are commodity based. These commodities enjoyed a long period of stability until the p. U. C. Began the water system improvement program. Then the cost of building that Capital Financing into the rates has cost water fees to increase steadily since 2015. Also, the cost of providing Sewage Treatment service is driven primarily by labor. Since 1999 when we started operating the system until 2021, the cost of labor has increased continuously over that time. In more recent years the amount of labor in terms of hours to maintain and operate the system has increased as the facilities have aged. The table shows current fees versus current rates in San Francisco and proposed fees. Our current fees are as much as a foot below the current retail rate for water in the city. That means we are paying more to the p. U. C. For water than we are charging users on the island, setting aside costs of maintaining our infrastructure. Our sewer rates are 27 lower than San Francisco rates. Those are two categories where the cost of the commodity and water and operating the plants have continued to increase. We are recommending fairly significant increases in those figures. The proposed water and sewer rates would be approximately 11 higher than comparable rates in San Francisco from the electric fee would be 35 pg e rates in San Francisco. With the p. U. C. They showed us the current costs of operation and the fees required to fully recover those costs. The current fee revenues do not cover the costs of operation. The adjustments in water and sewer are most critical at this time. Although we are recommending a substantial increase in the sewer fee, it is still not funding the full cost of the operation and we will subsidize that cost but we felt that the 11 above the city rate was still commensurate with what other customers are paying. As i mentioned during the Budget Discussion last month, the leasing revenues no longer are sufficient to cover our annual expenses. We dont have surplus leasing revenues to help subsidize utility operations. We will make up to 5. 5 million in payments in fiscal year 20 closeout to offset costs of operations. We are recommending adjustments in utility fees. If approved by tida board, we would provide notice to utility users on the island and implement the rates with the september billing. I am happy to tap questions the board may have. Thank you very much. The concern at the last Board Meeting was impact to residents of the island. The increase does not impact he individual residents of the island. It does impact the Service Providers. This increase will not be passed on to the tenants, that is correct . I want to make sure i understand. Yes, that is correct, director. What i would like to do before i take the questions from the board, i would like to take Public Comment. Do we have anybody who wants to comment on this issue . There are no callers. Then i will open it up to the board. Could i ask you, bob, to turn off your discussion, your sharing of the screen so that i can see the rest of the board. Thank you. I believe linda and sharon have questions. Thank you both. It is important that w echo so e public can hear if you are watching this closely. Yes, the tida board of directors at the last meeting raised concerns because of the covid virus and challenges that a lot of the seniors and everyone might be facing. It is correct in your document you made it clear that this would not lead to any increase to the residents because individual units would not know. It is important that each and every one of us state. I understand the general obligation to pass these things. I will only vote when i know it did not have a direct impact on residents in that aspect. The question is the commercial tenants are going to get this burden and also the federal government there will not. [indiscernable] for providers, Housing Providers they also make sure that at any time there will not be passing to the cost of anything to the rent. Right now the rent is frozen. At some point would the providers down the line after this virus be passing anything we know about . Does that happen that something, it would be great to know. Lastly, we are San Francisco residents. The p. U. C. Is an enterprise agent and taxpayers have to take into consideration. We know that tida has some public incidents. We have tidc and partners. Overall when we negotiate it is double taxation. We are paying taxes for energy for the city. When p. U. C. Issues Revenue Bonds, those are backed by the rates that they collect. Those bond proceeds are restricted to use on elements of their system that serve their customer base. Tida buys water whole same. The improvements made to the systems that transmit water from yosemite to the city, that portion of their debt is passed on not only to customers in San Francisco but wholesale customers. We are in that perspective a wholesale customer, and as are, you know, the city of santa clara, san jose, many communities on the peninsula and east bay receive water to support their operations from the system. Otherwise those bonds couldnt be used to fund a specific project on the island. As the p. U. C. Becomes the Service Provider on the island, costs will be averaged across their operations. If the cost in the future operating the sewage Treatment Plant here on the island is more expensive on a per thousand gallon basis than the operation of the oceanside Treatment Plant, our customers on the island will pay the p. U. C. The same sewer charge as every other sewer customer in the city. They average the cost of their San Francisco customers, not limiting it to just trying to charge different fees to different customers. Thank you very much. I can support this. Sharon. Thank you. I wasnt planning on asking this. Bobby said somethin something interesting. The table shows that the proposed new rates for Treasure Island is above the citywide average. Can you speak to that clarification first . The rate we are proposing for Treasure Islands is unique to Treasure Island because, again, we are not part of the p. U. C. System. At this point in time we have to support the cost here on the island. In the future when the p. U. C. Owns and operates all facilities on the island, then the customers on the island will pay the same as customers elsewhere in San Francisco. As you explained already. Whether we increase rates or not, p. U. C. Will be charging us x amount for utilities. If we do not increase rates what is our recourse in making up that amount . We would have to find it in the budget, is that correct. We would have to find funds in our revenues or pass those costs on at the end of the year to ticd. So i did express quite a bit of concern last time around increasing utility rates or any quality of life basic necessity costs to the island occupants during these unique times. Can you speak a little bit more to the timing aspect of this . Help me understand why we have to do this right now. I think i saw in the materials the Effective Date would be back dated to july 1st. Please check me if i am incorrect. Talk about staff position and thought processes around just on balance with the islands needs and current unemployment situation, measures staff has taken to make the appropriate recommendation here. I think as i recall in past communication, they recommended a higher rate. I think staff had dramatically reduced that may be by half. Can you talk us through more of your logic . Yes, it has been more than a year and a half since we last reviewed rates with the p. U. C. When we sat down with them this spring, they did open their books and show us their costs and had initially recommended we adjust the sewage fee by even more than we are recommending. Adjust the rate per residential unit more than we are recommending. We felt that given the circumstances as you described that was more of an adjustment than was appropriate given the circumstances. But that as i mentioned since we were recovering less for services than our being charged for services in San Francisco, we felt some increase was appropriate even in these difficult times, and since we are in the position for the first time of asking ticd to help balance our revenues at year end that adjusting these rates in some modest amount was appropriate. The timing question, bob. Can you talk about that . The Effective Date. Is there any possibility or what is the scenario if we wish to delay this increase . Can you talk about the impact of that . Well, the Effective Date you may have referred to. We originally drafted the resolution for consideration in june. I think if it said that we would make the ad justments july 1st as we updated staff report this month i may have failed to update that discussion in the staff report or resolution, but the expectation that would be right now would be to make these changes effective in september. If we dont increase rates it will increase the overall budget shortfall. The budget we adopted last month assumed this increase in rates, and yet that budget still anticipates that we will be requiring a payment from ticd in excess of 10 million at the end of the year to help balance revenues and expenses. If we were not to increase rates and this would generate over 1 million in total utility fee revenue, if we were not to increase these rates, and not to find some other source to cover them, then these are costs to be passed to ticd at the end of the year. Then can you talk about because this fee, as linda pointed out, it sounds like staff assured us that it will not be passed to individual residences. The Housing Provider and commercial tenants will have to pay for this. Can you talk about any feedback you have heard from them . We provided information to the Housing Providers in the timeframe that they should anticipate an increase in the utility fees of about 10 , which is what the currently proposed utility fee is. And while no one is, you know, likes to see costs going up, there was not communication that this would be a significant challenge. Yeah, we have tried to socialistically what the residential Housing Providers in terms of utility commercial tenants. We havent discussed it broadly or at least i havent. I am not sure what the conversations are. Commercial leasing manager may have had with them so i cant speak to that. Okay. I think in your report you have clearly laid out it would be 40 utility cost increase for residential Housing Providers per unit. Is there an average for commercial tenants, the burden on commercial tenants . You know, each tenant is different in terms of their use profiles. Some of our tenants like Storage Companies use relatively little water. Other tenants like wineries tend to use more water. The increases are primarily on the water side and would be on the range between 30 to 35 increase. You know, if someone had a 500 a month water bill, then it would be on the order of 150 or so. Thank you. Sharon, are you through with your questions . Yes. Thank you. Linda. I think the primary issue for us if we just i know it is between a rock and hard place. We cannot assume any more shortfall in this particular budget. We know that and the assumption for the budget that we have already passed has to stay in there. I think for me now the fact that the resident and seniors and regular people are going to be accepted. It is a good thing. It is great. Job core, federal government can pay that. I think we also have the latitude because not every commercial tenant is the same, as the director mentioned, that we might work with them and to try to carry everybody along. I think the Economic Situation and the obligations that we have as tida to carry on for the next year or two is very important. As long as the residents are not going to be bothered by this, we can go along and live with it. And then as we move forward we can be asking the directors and again how to help everyone on the island. People are going to do that. We do not do this then. It is going to trigger a lot of shortfalls that i dont think we have the system to absorb. This is a public project. We know that. The city has its own obligations. We are getting 10 million from the private developer and i think we need to be able to manage and fulfill our own obligations as well to make this a truly Public Private partnership. I would go in here that we should go ahead and approve this but keep it on the agenda to mitigate some of these issues as we move forward. [please stand by] citysid and so i was wondering how this works with restaurants and [inaudible] cause we need that. Ill let you answer that. Whats the impact on restaurants . The two restaurants that we have on the island, neither of them, theyre not metered customers, but they pay a cam charge to cover utility expenses, so at this point, for our commercial customers that pay cam charges for utility fees, were not proposing any increase in those cam charges to commercial tenants. And for araceli in particular, who has is operates out of the school, they historically have been a masser lessee for the school site, and we are master lessee for the school site, and we are working on a lease with araceli and the tida, which we will be bringing to the tida next month, where they will be paying no lease, so steps to further decrease the amount. Okay. Thank you, bob. Okay. Sharon, do you happen to have a question . Actually, i would like to propose a motion to amend slightly. I think we need to make sure that we make it clear in the resolution that because of these agreements and limits on passthroughs that residential tenants will not be impacted, so i think it belongs somewhere in the whereas. Is that okay to suggest . And then, also just want to thank you for reminding us that the rate increase will not be until september 1, which hopefully by then the city will reopen to some degree. And i know i havent raised this in the past discussion, but i do feel quite strongly an obligation to try to advocate for delaying the increase as much as possible and would like to propose to amend that we start the new billing on october 1 instead of september 1. Okay. Bob, do you see a problem with this . The proposal is, first of all, to clarify in the resolution that no residential tenants will be impacted, and secondly, that means the new rate would start in october rather than september. Yeah, no, i would be fine with that. I think i would propose to insert a clause on line on page 5, online line 8, where says the residential customers whereas the utilities charges for residential customers are included in their rent, and the leases do not provide for changes in utility fees to be passed through to tenants, and then and, and keep going from there. And then, under the resolved clauses, lets see. It doesnt have a specific date in the resolved clauses, but the further resolved clause specifies the rates to be adjusted to, and we could just end that to say that the adjusted use fees effective october 1. [inaudible] first thing, i would accept amendment to my motion. Okay. So we have a motion. Yes. And do we have a second . Was that my motion or was that lindas motion . Linda has amended the motion, and bob has suggested the language which incorporates your suggestion. Great, thank you. Okay. I will second that, then. All right. So then, we will have a roll call on the vote. All those clerk all right. [roll call] clerk there are four ayes. Okay. So the ayes have it. Thank you very much for this thorough discussion. Thank you. Okay. The next item, please. Clerk item number 9. Were now at 4 00 4 07, so lets try to be, you know, very quick and efficient in our discussion on this matter. Yeah, and this last item is fairly short. I think they only have five slides, but theres been some conversation thats been underway, and i wanted to bring a brief update to the board relevant to the situation siteing of the hotel on the western waterfront. And xing li was going to present the slides. You can give her the control. Clerk she has the controls. Are you able to pull up the presentation . Yes. Clerk okay. Great. Thank you see the screen . Yes, jane. Thank you. This is jane ng with tidc, and im here to give an update on the palms extension. So this site shows the originally designed street grid for t. I. With the street open to cars, bikes, and Pedestrian Access and a roundabout at the end of the avenue. Under this original thinking, it was thought that h lot would be developed along with the parcel lot, and for those two lots to be thought about concurrently. This is the revised public site plan which i believe was discussed and presented to the board. The decision was made to also develop the hotel parcel separately from the residential parcel, and these factors together drove the thinking on eliminating the roundabout and connecting the pump with the resulting avenue street grid. So these next two slides are a close up of the avenue of the palms extension and the changes that are being proposed. And this year here is the orig configuration showing the plan with the roundabout. And this is the revised scheme. So the hotel parcel stays constant at 1. 14 acres, with the north and west boundaries shifted to accommodate the new 66foot rightofway for the extension. The height limit for the hotel parcel within these new areas right here within this dotted area would be 25 feet but would provide ground floor space for the design of the hotel parcels, access, and parking share, and we could think about how this north edge here could engage with the adjacent park. Under the scheme, the geometry for the cycle park and the city site stormwater treatment area would be adjusted for the required size, and ill stop here and turn it over for any questions. Okay. So board, are there any questions about this proposed to the proposed site plan for the connections . If i might, jane, i actually think that this is the better plan, which connects the avenue of the palms more directly to the others, so im not opposed to it. I think this is actually a better alignment of the streets. So board, are there any other questions on this . So hearing none im sorry. Linda . Yes, i didnt see you. Yes, go ahead. Just, director, the old versus the modified, i think it looks better, and in subsequent meetings, well look for more information, and id like to see more of the transportation configuration, but at least for the revised plan, it looks like a better item. When are you going to bring it back . Well, well continue to bring forward continual updates. When we originally mapped this area, we created the parcel as was indicated in the prior slide, so well need to redo the map to configure with the second figure with you know, the map amendments take several months to execute, so during that time, well come back and provide additional discussion. Thank you. All right. Thank you. Sharon or mark, do you have any questions . Okay. Hearing none, operator, are there any Public Comments . Operator there are no callers. Okay. So theres no Public Comment. This is not an action item, i understand, this is informational oh, it is this is just an informational item, yes, so theres no action required at the time. Correct. All right. So hearing no other comments, lets go to the next item, please. Clerk item number 10, discussion of future agenda items by directors. Are there any items that the directors would like to bring up . Bob, just i would like to hear, certainly, from ticd as an update on their plans on the designs on whats happening with their projects on Treasure Island. Its been some time since we last heard from them, and i think all of us would like to be updated, so if you could find an appropriate time for that presentation, i would appreciate it. I will make that invitation. Okay. Thank you. So last item is adjournment. Move to adjourn. Wonderful. And directors, i want to thank you for your dedication to the Treasure Island Development Authority, and to Treasure Island. This is a lot of our volunteer time, but your questions and your comments and your perspectives are really very valuable, and i think it makes for a better product in the end, so thank you very much. We also want to thank you, director tsen, for your ongoing leadership, as well. Well, have a good month until we see you next. I think there is going to be an august meeting, and we will use that time, and it will be remotely, but i look forward to seeing you all in person soon enough. Thank you. Okay. Thank you