Transcripts For SFGTV Citizens Govt Bond Oversight Committee 20240712

Will be muted and in listening mode only. When your item of interest comes up, dial star three to be heard. Speak clearly and slowly and turn down your television or radio. You can also submit your Public Comment by email. It will be forwarded to the committee and will be included in the files. I will go ahead and call roll. [ roll call ]. Clerk at this time we have a quorum and its 9 38 a. M. Can you call the second item. Clerk opportunity for the public to comment on any matters within the committees jurisdiction that are not on the agenda. Members of the public who wish to provide Public Comment should call the number listed with the access code. If you havent done so, please dial star three to line up to speak. A system prompt will prompt you to begin speaking. Please note that you have three minutes. Give me one second as i go to see if we have any Public Comments. We have one hand raised at this. I am dr. Derek kerr, a whistleblower. Later you will hear about the report related to the d. P. W. Corruption scandal. These reports are limited handouts because they fail to address three key questions. Number one, why did the Whistleblower Program miss this . Number two, why does the f. B. I. So often lead the way in these anticorruption efforts . Third, why do city whistleblowers go to the f. B. I. When we have three city agencies that supposedly investigate misconduct . Last year the Whistleblower Program received 600 tips, and of those 108, or 18 , related to the departments of public works, Public Utilities, building inspections, and the city administrators office, all of which were implicated in the f. B. I. Investigation. How many of these 108 complaints pointed to the very corruption that the f. B. I. Unearthed . I have a suggestion. The Whistleblower Program should audit or review the complaints it received over the past five years to determine how many previously warned about this corrupti corruption. If there were none, it tells you something about the reach and the effectiveness of the whis e Whistleblower Program. If there were some, it tells you something about the programs investigative capabilities. Either way, the results would improve avenues for the Whistleblower Program. Thank you very much. Thank you, dr. Kerr, we appreciate your time. Any other Public Comment . My name is francisko de ko a kosta. The last 15 years, ive been monitoring the Bond Oversight Committee reports. This citizens general obligation Bond Oversight Committee does have a lot of authority but has failed us san franciscans. Again and again we see abject corruption of the highest order, millions of dollars wasted, more so by an entity, an Enterprise Department like the San Francisco Public Utilities commission. We have business being given out using favoritism. Millions of dollars linked to Community Benefits are given to a chosen few, all tied to taxpayers money. We have a Sunshine Task force that is important. We have an Ethics Commission that is dysfunctional. We have a Controllers Office that tenders to the City Attorney and the two of them do what they please, mostly kicking the can down the street. Now, if youre a whistleblower and you want to help our city and the taxpayers link to millions of dollars, do you know how long it takes the Controllers Office to look into the matter because we have no [indiscernible] in the Sunshine Task force or in the Ethics Commission . Years. Why would somebody go to the Controllers Office and give them the Empirical Data and do all the heavy lifting if there is no result . I mean, there is an audit there and the audit shows that the Ethics Commissioner deals with [indiscernible] frivolous cases and not the cases that matter because the City Attorney thinks that if he chooses those cases that dont have a monetary value then hes doing the city a favor and allowing crooks of the highest order to do what they please. So im asking the this Oversight Committee to do something and do it on a strong footing. Thank you very much. Clerk thank you. Thank you, mr. Kosta, we appreciate your time. Clerk i do not see any hands raised anymore, so Public Comment is closed. Item three, election of chair and vice chair. I think we need to deal with the minutes first. Clerk that one is item number four, but i can read that. Im sorry, youre right. Members, once a year i think it is, once a fiscal year, we look at the chair and vice chair. So we have to reelect them. I am termed out. I was appointed by the board of supervisors and i think i am termed out. I will or have reached out to the board of supervisors about replacing me. Like brian, im happy to stay on to ensure the work of the organization continues and we have quorum where needed. Having said that, im probably not the best candidate for chair, given that my term could end at any time. If anyone is interested in taking that on, i have talked to shavan about the role and she is willing. So i would like to nominate her as chair going forward. I would like to make that an official nomination, but we dont want to keep anyone from their interest, but were happy to discuss here the role. We are in october now and we will yet again elect another chair next july, just to give everyone perspective on how those roles last in our environment. Comments . Ill second that motion. Id just like to say thank you for the nomination and looking forward to getting the committee back on track. If theres no comment, should we take a vote . Clerk yes. Let me call the role. [ roll call ]. So you are now is the chair. Would you like me to continue running this meeting to give you yes, please. Please dont hesitate to break in at any time. No, thank you. Youve been great. Vice chair, i know that lauren has told me previously that shes willing to stay on. Is there any interest in that . I want to point out one of the weird things about our committee is we all have two, twoyear terms, which is not a long time for us to get up to speed. I would be happy to serve as vice again, but id also be happy in someone else would like to in support of what you just sai said. Either is fine with me. As i recall, christian, youve always been in attendance. But if shavan couldnt attend a meeting, then the vice chair would serve in that role. As well as you and i have worked together on various issues of assigning subjects to various members and various logistics and Planning Issues and setting the agendas for the meeting, we would do that and the work plan. I nominate jane. Im happy to step in and do that and take a shot at it. Im happy to serve in that role if nominated. Ill second that nomination. Anyone else interested . This is my second meeting. Maybe later. If everybody is comfortable, we can call the question. Clerk would you like me to call the role fors vice chair . Yes, please. [ roll call ]. Eight votes. Thank you, jane. Is there any Public Comment on this item . Clerk members of the public who wish to provide Public Comment should call the number listed and use the access code. Then you push pound and then pound again. A system prompt will indicate you have raised your hand. Please wait until the system has unmuted you. I see one caller. Let me unmute this person. Hello, caller. The caller hung up. So we have no Public Comment on this item. Great. Call the next item clerk item four, approval with possible modification of the minutes of the january 27, 2020, meeting. Madam chair, i have a slight amendment thats missing. I was going to put it up but i didnt see my name. Clerk i can make that amendment to the minutes. With that amendment, is there a motion to approve the minutes . Ill make the motion. Ill second. All in favour . Aye. All opposed. Seeing none. I think we need to take Public Comment on that also clerk Public Comment. Members of the public who wish to provide Public Comment on this item should call 4156650001, accewith the acce code and then pound and pound again. There is no Public Comment. Did you want me to read item five . Yes clerk presentation from department of public works about the 2011 road repaving and Street Safety bond program and possible action by the committee in response to such presentation. The presenter is edmund lee. Good morning. Good morning, members of the committee and congratulations to the new chair and vice chair. Im a project manager for the department of public works and i will be presenting a bit on our 2011 repaving Street Safety bond. This should be familiar to most of the committee. The first slide we have is an overview of the original Budget Approved from the 2011 ballot. We have 248 million general Obligation Bond that was distributed amongst six different programs within our department. We have the street repaving and reconstruction, streetscape, bicycle pedestrian safety, material fact signal and street improvements, sidewalk accessibility improvements, curb ramps, and improvements with sidewalk repairs, and also our street structures. On the right we have a couple pictures from some of our more recently completed Streetscape Project projects. Next slide we have an executive summary. One thing to mention is the majority of the scope that was within our bond has already reached substantial completion. We have one project out there thats a Streetscape Project under the highlights and accomplishments. We have 95 of the sewer and water work complete, 95 of the curb ramp work, and 40 of the paving thats complete. We anticipate the substantial completion for this project in march 2021. So the majority were pretty much wrapping up all the scope and implementation of the bond. For the roman numeral iii just to mention the last bond sale was 43. 4 million and that was back in april of 2016. Some of the risks and concerns on the budget scope and schedule, i think its been some time since weve met. Weve been reporting with the bonds that the Financial System posed problems for us in viewing the information from a financial standpoint. Weve kept that up here and definitely made a lot of progress in cleaning up a lot of the data and being able to view good information that we can use for our particular bond towards close out and balancing our budget. The next few slides are going to be each individual program in monitoring all the goals that we had as part of the program. Most of the work has been completed for the changes, but the first is the street repaving and reconstruction. We had 52 projects that were completed and of those projects we yielded 1,346 blocks that were resurfaced. If you look at the bottom right chart, this is a chart thats monitored our p. C. I. Score over the last 10 years. Weve had part of the 10year capital plan, to achieve a p. C. I. Score of 7. 5. There was a significant amount of funding in the first few years of this 10year run. I just wanted to highlight that 2021 is the last of these 10 years. We havent officially hit 75, but all of our projections are pointing that way. It looks like were going to hit it. I just wanted to highlight the contribution that was made for that effort. The next program is the streetscape, pedestrian, and bike safety improvements. To reiterate from the highlights earlier on, that the one project thats currently under construction for the bond, and the majority of the work is completed and substantial completion will has been in march 2021. The next slide we have is the Curb Ramp Program as well as the sidewalks. This is one of the programs the two programs that have been completed for quite some time, a few years, but to review the accomplishments. Its 100 complete. Over 1,000 curb ramps were completed and for the ramps we have 646 blocks that were repaired and square footages of 155,000544 square feet. The last program that we have is our roadway Structure Program, also 100 complete. I believe this was sometimes last year, i believe, but 39 road restructure projects were completed. Within those projects, 41 actual structures were repaired. Sorry, excuse me, Traffic Signals is the last year. We have the Traffic Signals that have also been completed for some time, a couple of years. We have 440 intersections, 10 Traffic Signals at intersections, and then we also have the infrastructure upgrades such as conduits and pull boxes that were upgraded as part of this program here. The last slide that we have is sort of a highlevel overview of just the budget expenditure and balances for each of these programs within the bond. Again, were kind of wrapping up the last Streetscape Project. Some of the other projects in the programs were accomplished in the last year. So the majority of our expenditure is well into the 40 percentile. With a lot of the information thats cleaned up, were able to get a good sense of what our budget expenditure balances are. So were actually in the process of closing out all of the different projects that contributed and utilized the bond funding. To date we probably balanced about 35 to 40 of the bond. Were continuing that effort currently. So we have this breakdown here. If anybody has any questions or would like me to reference a previous slide, i can do that at this time. Thank you, edmund. Any comments from the members . Thanks, president. I want to appreciate all the work the staff has done. I think i met with you back in february or so right before we got locked down and we discussed this lingering issue with the Financial System. So we appreciate the progress thats being made and i think both your side and our side looks forward to these bond programs being closed out and we seem very much in line with the voters. Im proud of the work the city has done, so thank you. Thank you. Its not often that we look through these and we see everything on target. There is not a lot of need to reconfigure how the bond is spent. Not every bond is so fortunate. Ive seen the benefit of many of those streets getting around town and appreciate the hard work there as well. Thank you. Any other comments . Questions . I have a question. In the spirit of the [indiscernible] and coming from a whistleblower perspective, do any of these bond projects or subcontractors or vendors have anything to do with the current investigation of misuse of city funds . Not that im particularly aware of. You know, i havent im maybe not uptodate with all the specifics of all the investigations, but being involved with this particular bond, i have not been approached with any questions regarding any of the specific contractors. None of the big players that i have heard in the news ring a bell of the particular bond, but im not in tune with all the specific investigations. Okay. Thank you. So just so everyone is on the same page with the same knowledge, im not sure who the right person is, but can someone summarize the misuse of city funds related to the d. P. W. In particular or the Current Situation . I know were going to go into it in detail in number nine, but i think its clearly relevant across all the bond programs. I dont think i would do a good job summarizing the situation. [laughter]. I can give an attempt. Honestly, i have not been close to these investigations so im just going to give the most general list and mark de la rosa will be giving his presentation later. There are allegations that bribes were offered to a commissioner. There are allegations that work was done and possibly cash bribes were offered to one or more City Employees in exchange for preferential treatment for participation in these processes. There are allegations that friends of organizations, Nonprofit Organizations, were used to take the funds from private contractors and then to do events and other things for the benefit of city departments. Those are the most broad outlines. Theres been at least one city contractor which has been specifically named in these allegation processes and i think that a procedure has already been enacted on that contractor. I dont know if they are able to [indiscernible] thats all i feel comfortable saying. Those most knowledgeable will be here later. Madam chair, can i ask another question . Yes, please. Maybe mr. De la rosa can answer this. Will he answer if any of the investigations have to do with the bonds . I can go back and take a look at the history of all of our projects and see if azul was a contractor in any of the previous ones. Yeah, i think that thats the spirit of the question is for the bond money that we were overseeing and the projects we were overseeing, was that contractor hired to do any of the work with the bond money thats under our jurisdiction. Im aware that azul hard contract contracts in the park funds. Members of the public can go on the website and do a search for the contractors. There is quite a bit information specific to contractors within the public realm. Great. Any other comments or questions . We will take Public Comment clerk any members of the public wishing to make a comment, call 4156550001, then use the access code and then pound and then pound again. Please wait until the system prompt indicates you have been unmuted. Please note that you would have three minutes. Anyone can make a general presentation and i did see the controller saying something, but from what she said, she means nothing. When we have a situation of this magnitude, someone should give an orientation on the subpoenas. The subpoenas that are available. We have some others who are on a list. Maybe i can find out through the City Attorney and the controller those on the list who are still doling out money hiring people and laughing at our face especially the advocates, more whistleblowers who want this for our citizens and our taxpayers. When we have these huge projects, let me give you an example, the storm sewer project started with 6 billion. 5 of that was supposed to be Community Benefits. Its now 12 billion, double the six. By the time you get finished, its going to be 20 billion. And you Committee Members have no clue what is happening. Im telling you that contractors who rb indicted are working. Im telling you that City Employee employees who are subpoenaed are hiring and firing. So what is happening to our city . What the hell is happening to our city . We are talking about billions of dollar dollars, billions of dollars. Were not talking about millions of dollars. When it comes to the 5 Community Benefits, those should have been spent for our infants, our children, our youth, and its not being spent. There is no due diligence. There is no enforcement. There is a prevailing pandemonium and madness in San Francisco. Thank you very much. Clerk there are no additional callers on the line. Great. Thank you, mr. De costa, for your time. Clerk item six, presentation from the San Francisco Municipal Transportation Authority about the 2014 transportation and road improvement bond and possible action by the committee in response to such presentation. Good morning, Committee Members. Jonathan rewers with the m. T. A. I am on my phone because my computer doesnt work. I hope mary can run my presentation for me and im happy to go through it with you. Just a quick reminder as the presentation is loading, this is the first bond for transportation that San Francisco has made in more than 20 years. Mary, tell me when its up. Clerk im working on it. Give me one second. We have been having technical difficults with it all morning. Prepare your many questions. [laughter]ies with it all morning. Prepare your many questions. [laughte [laughter]. This is what happens when you present during vacation. I specifically wanted to take my Presentation Time to make this presentation. Dont worry, mary, i too have had issues this morning. Clerk there is a lot going on here. Unfortunately, i dont know if i can share it. Mary, ilene husto is also on the call. If you can make her a presenter, she might be able to show the presentations. Clerk what is her name . Ilene husto. Clerk i dont see this person on the call. One thing weve done in the past is we could take item seven and then come back. Sure. Clerk im going to pass the present herbal to rally. Give me one second. You can right click on the persons name and change to presenter. When you got a lot of people like this its hard to drag the ball. Clerk well move on to item number seven at this point. Presentation from the Mayors Office of housing and Community Development about the 2015, 2016, and 2019 housing bonds and possible action by the committee in response to such presentation. Can everybody hear me . Clerk yes. Mary, this is peg. I downloaded the m. T. A. Presentations. When we come back to them, i can try being a presenter as well. Clerk okay, great. Thank you. When you open it just go up to go up to new. I think were all set. Im rally catapang, the finance manager to give an update on the bond. Im also joined by my colleagues. In 2015, San Francisco voters approved proposition a, a 310 million general Obligation Bond to finance the construction, acquisition, improvement, rehabilitation, preservation, and repair of Affordable Housing bonds for low and middleincome households. There were three issuances. In 2016, 2018, and 2019. As of june 2020, weve spent 96 of the First Issuance, 82 of the second issuance, and 4 of the third issuance. In this slide you will see the summary broken down by category. You can also see the recently completed and now fully occupied 1296 chatwell. The first and second issuances are expected to be fully spent by the end of the year, while the First Issuance should be spent by 2022. The last portion of the issuing will be on educator housing [indiscernible] as you will see spending of the third issuance funds will accelerate in 2022. You will see the units produced for the 2015 Affordable Housing bonds have been geographically spread out throughout the city. Over 400 units have been produced, with over 400 in production and 700 in predevelopment. The bond has funded the completion of the first new development in sunny dale and portaro as shown in the previous slides. We have funded over 100 down payment assistance loans. As of june 2020, construction is ongoing at the listed addresses. That was a short update and were happy to answer your questions. Thank you for the short update. Im just curious what updates, if any, there are on the timing of some of these projects, given the impacts of covid . Have they delayed anything . These already have pretty long run times when were looking at how long it takes for them to get built. So im curious what impacts youve seen from that. From speaking to our project managers, there has been very limited impacts in terms of timing, although definitely theres been kind of a little bit more costs related to the procedures that we have to do with regards to having or dealing with covid, but overall theres not been any big delays. Any other member comments . Rally, i think i must have missed, what role do you play in this . I dont think weve met before. Im the finance manager for the bond. And where are are the programmatic people on . [indiscernible] i believe there should be a few, at least one person on. I believe benjamin is here, though hes more finance, and also jonah is on the call. Benjamin mcclosky, Deputy Director for finance and administration. We have on the call lydia eely, the acting Deputy Director for housing and jonah lee. If you have specific programmatic questions, feel free to ask them and well do our best to get them in. Okay. Im sorry. This was 2015 only. Weve got 2016 and 2019 to cover and theyll be covered by different people . Correct. Lets move on to 2016. Thank you and good morning. Im jonah lee director of finance administration. Im pleased to provide this update on the 2016 housing bond. These geo bonds finance loans under the pass program, which is the key component of the citys acquisition, preservation, and antidisplacement strategy. The Bond Authority for the past program originated with the preservation and seize milk Structure Program update. There was a fund to fund loans under the preferred market rate typologies. Over the subsequent 20plus years, the program was under utilized, with only 90 million in bonds issued. The pass program specifically deferred loans that require permanent affordability, to maximize affordability and to minimize the use of public resources, average rent and income is 80 of area median and capped at 120 of area median. To date, the program is largely serving lowerincome households, less than 60 of a. M. I. However, allowing for a mix of affordability levels creates an internal cross subsidy and expands the universe of eligible projects. In the table on the slides, you can see both the rent and Household Income levels for 120 of all units. Next slide. This is a nimble evaluation tool for the city. We have limited other tools to facilitate preservation of Affordable Housing, especially in the current market. It may be a very powerful tool to execute on a cyclical strategy, especially considering the current market environment. Eligible uses are seismic retrof retrofit retrofits and refitting s. R. O. S. The Program Provides lowcost and [indiscernible] that complements the preservation of the antidisplacement work being done by the small sites program, which has preserved 40 projects and over 350 units since inception. The projects illustrate how the combination of pass and small site financing produces a costefficient Capital Stack that allows Affordable Housing developers to develop atrisk properties and preserve them as permanently Affordable Housing with less public resources. In these two cases, pass allowed these city subsidies will come from the s. F. P. Program. Most loans are structured as permanent takeout financing, however, the program may also provide direct financing. To achieve the lowest cost of capital for as many Affordable Housing properties as possible, each project receives a blend of deferred promarket rates. Those loans are structured with a 40year term. Loans funded under this bond series yielded a blended rate of less than 3. 5 , which even in todays historically low Interest Rate environment remains a competitive Interest Rate. With strong continued demand for the pass funding, all of the bonds from the First Issuances have either been closed or committed. Since may of 2019 there was a closure of a little over 36 million to preserve 200 units. More loans are scheduled to close by the end of the calendar year and more than 450 units in aggregate will be preserved. Leading up to the covid19 pandemic, pass loans performed with no defaults, delinquencies. We acted quickly to enact moratoriums on rent increases to keep residents in their homes, to ensure the safety and continuity of these operations, we are providing rent assistance, regulatory relief, and advising on best practices. Part of that Financial Relief was a covid19 Forbearance Program, which included up to 12 months of forbearance, initial sixmonth period would be Deferred Interest and an operational extension with ongoing Monthly Payments as financially feasible. Total for loan payments would be added to the end of the loan term and the assess management will remediate and work out any nonperforming loans within that 12month forbearance period. Based on the conservative bond sizing of the original 2016 issuance, staff determined that 100 forbearance for up to 12 months would not adversely impact the citys budget or tax levy. I would report that loans are already outperforming the initial projection and [indiscernible] for is less than 2,000. So its a minimal impact. This table provides a summary of the projects if forbearance in the program. Seven projects representing roughly 37 of the portfolio are performing and seven projects sponsored representing about 63 of the Loan Portfolio are in forbearance. From the period of april to september, the monthly foreborn debt service was about 76,000. Based on actual performance over that period, the Monthly Service is 15,000 or 14 of the scheduled debt service. So m. E. D. A. Has recently requested to extend the forbearance period and staff are working with them regarding that request. Collections since april supports roughly an 80 Debt Service Payment overall with three of the seven projects that were in forbearance already [indiscernible] stabilization. More time is really needed to evaluate if the remaining projects will require a workout. However, if they do, staff has estimated that the total gap needed would be less than 3 million and could be funded by an increase in mohcd funding. Covid19 remains an ongoing threat. But the citys proactive approach has been facilitating recovery. To mitigate nonperformance of existing loans, mohcd is actively responding to the pandemic. The Forbearance Program and first and foremost ensuring the continuity of Affordable Housing operations, keeping people safely housed, and providing critical Financial Relief. Over the next three years, mohcd is also making strategic capacitybuilding investment, representing 3. 5 million in capacity grants to support operators. Additionally Asset Management staff perform performance monitoring. This will allow us to work with them and execute workouts on an asneeded basis. At the same time, our office is fully mobilized to leverage any new resources that come down in support of the citys recovery efforts, such as emergency reimbursement, section 8 rental assistance, as well as a large amount of emergency solution grants that have been coming to the city. To mitigate nonperformance of new loans, staff are implementing covidrelated underwriting updates to conservatively sized loans based on lower revenue projections, higher expenses, as well as larger upfront capitalized reserves. This repayment risk is also mitigated by the financing structure, which is a permanent takeout financing that requires projects to achieve stabilization prior to closing of mohcd financing, and that includes achievements of the minimum 1. 1 Debt Service Coverage ratio, residential and commercial occupancy and rental achievement levels, as well as the full capitalization of all of the required reserves. New originations are expected as well as Asset Management, performance monitoring, and new resources that San Francisco can leverage to support the overall recovery. The anticipated pipeline for the second issuance of pass bonds in an amount of approximately 101 million includes a pipeline of approximately 34 projects with over 500 units inclusive of commercial spaces. With california currently oversubscrib oversubscribed 221, there is a huge need for preservation finance tools. That need is particularly acute, given the new acquisition opportunities in the current economic climate. The recent unlocking of homeless funding from proposition c, indeed pass funding is uniquely positioned to lock in historically low costs on longterm funding. [indiscernible] this pipeline of projects includes a range of potential projects, both small and large, that achieve the citys goals of financing critical needs as well as supporting priority atrisk acquisition, geographic equity, racial equity, the many core goals of our antidisplacement and preservation program. Thank you for the opportunity to present on the program and give this update. This concludes my remarks. At this time, i would be happy to answer any questions. I have a number of questions. One of my concerns, just for the other members, longstanding concerns about this is around bonds in general, is how do we ensure that the bonds are used within the bond funds are in the in the expectation of what the bond said it was going to do . This for me has been the hardest bond program to understand and ensure that its actually doing what, again, it was intended to do when it was passed by the voters in 2016. So i want to celebrate the flexibility that mohcd has done in these tough times with covid19. What id like to understand is, how did you get the authority to change how these funds are being used when things like the forbearance decision which affects the recovery rate of bond funds, which should i would think affect our ability to be successful with them, the capacity building, preservation, all the different tools that you guys are using, are those all are our bond funds being used in what sounds like an incredibly flexible way . Thats a great question and in my presentation i should have been more explicit about identifying which of those activities is funded by the bond program. To be clear, the bond funds have not changed in the use at all from the eligible uses of funding the loans. The capacitybuilding grants, the other activities and courses that the city is leveraging, i wanted to include because i think theyre relevant to the holistic scope of what the city is able to bear in response to covid19. It does not represent a change of uses of bond funds. The funds are solely going to funds outlined by the voters. The Forbearance Programs and their modifications can be done with approval of the City Attorneys office and the Controllers Office and does not represent a change in uses, but is a change in the actual lending. Really the temporary suspension of the repayment term. But it has a material effect on i mean, i thought we had already agreed on what the Cost Recovery was going to look like and the payments would look like and how that would affect the ability for people to be able to borrow against it. There was a whole cycle and a significant Material Change to it. Well, i think we determined that providing forbearance of up to 100 of the loans for a 12month period would not have a material or a significant effect on the program. Just a reminder that this program, all of the bond holders and the repayments, are city obligations. Its different from a mortgage revenue bond thats structured on the repayment of [indiscernible] although it is of course a portion as replace of employments come in, they do come in and often offset the tax levy thats used. Yes. As a voter and i remember this bond, thats how i was sold on this. Its not a material from a financial perspective, but i think it is a significant change in how decisionmaking is made around this. I would look forward to the approval given by the City Attorney and the Controllers Office. We would appreciate to know about these things as these decisions are being made. Thats why i concluded in this report, in this case this emergent situation of responding to covid19 and ensuring the continuity of operations in these properties, knowing that the pandemic is unfortunately affecting lowerincome households and households of color. Being able to respond immediately was absolutely critical. This is the deputy City Attorney. Im standing in for kim rouge here. I just wanted to speak to the questions you have on the use of bonds and also on the forbearance. So there are two things. One, with respect to the extension of the procedures and with respect to the authority and flexibility, the mohcd consults with our department on those questions. To the extent there are questions that arise, to the extent that they have questions about the use, those are well vetted by the City Attorneys office and we provide advice with respect to programmatic perspectives. With respect to forbearance, the director is right, this is a geo bond. This is the repayment of the bond is not directly tied to the performance of the underlying loans, but it is intended to be an offset. That offset is not affected by the number of loans provided. We can certainly provide a memo to the committee at a Subsequent Committee if the committee would like. Yeah, that would be great. I think, mark, my issue is its a slippery slope to decide this forbearance right now. How are these decisions made in the future, you could say thats a small financial amount, but it is changing the structure here and we could build these assumptions back on top of each other and end up in a different situation. It comes down to what the voters thought they were going to get out of this. Thank you. You talked about compensation s [indiscernible] maybe you can speak to the forbearance is really tacking these payments on at the end, so its moving the payments, but its not eliminating. These are things that we considered and evaluated for a temporary period of time as we got consent from the City Attorney. But we would be happy to call this up at a future meeting. Thank you. To your point, i think we could see how many people actually took advantage of the forbearance because looking at the presentation and the more indepth reports, will the residents who apply for these loans are working people, multifamily working people, who more than likely have continued to work during this shelter in place and are still making their payments because most of the people who make that type of money are people who have jobs where they have to go to their job. That would help us determine how much effect as the chairman made that point. If its a small percentage, then of course there is not a big effect. Just to say we have forbearance and no real number attached, makes it difficult. Thank you, chair, for your comments. I find this incredibly hard to grasp at times, the amount of information, these particular areas of housing. I think as the City Attorney offered to share the memo with us and offered to give us a crash course on what changed and how the decision process was made. We can do that. Thank you. Should we move on to 2019 . I just wanted to give you an update on the First Issuance of the 2019 housing bond. The board has approved the issuance of the bond not to exceed 260 million. This is almost double the 2015 housing bond. The bond allocates 150 million for public housing, 220 million for lowincome housing, 80 million for preservation and middle income. 150 million for Senior Housing and 20 million for Senior Housing. We have an increased need to for the 2019 issuance from 2019 and 20 2022. Im sure ive asked this before about the housing bonds, but id like current and further clarification. As far as getting people into housing, is there any residency requirement . In other words, does the person have to show that he or she has been in San Francisco and housed before being eligible or can they come and get in the queue . They have to be a resident or a worker in San Francisco and theres Different Levels of preferences given to people when they apply for housing. The way that our housing lotteries work for all of our new housing, whether its funded by the bond or not, has a number of layered preferences for the lottery process. And the effect of those preferences is that there is no possibility that someone who lives and works in San Francisco would end up in our units because there are so many people who apply and because we have a live and work preference, everyone who applies and lives or works in San Francisco would be placed in a unit before anyone would be considered who doesnt live or work in San Francisco. So while we allow people who do not live or work in San Francisco to apply, theyre effectively not able to enter the housing. [indiscernible] the department of homeless and Supportive Housing will be handling those funds. I have some comments. We know that theres more money on this years ballot for even more funds. So theres a lot of taxpayer money being pushed into this environment. One of the things that ive always struggled with is whether the bonds whether we can say not just are the bonds on time and on budget, but are they meeting the needs of the voters and the expectations of what the voters are voting on. A lot of these bonds get approved based on the idea that we have a lot of homelessness and putting money into the mayors housing fund, will that change that . I think there is a perception that the effect on our users has not changed. As citizens, theyre incredibly frustrated. How do we measure what a bond will deliver against what it actually delivered. This was in our 2019 work plan. It was a housing Public Perception survey. This idea was that pegs team was going to do some work around putting in place hiring a vendor to do this work. I would love to get some understanding of where we are with that. I understand it had fallen off the agenda from the last meeting way back in january and i definitely want to hear more. This is hard and an even more challenging time now. The questions i have, i dont know if it was the best venue. Im serious, but i want to learn a lot more about how the past seven months have really impacted these programs even more so. [indiscernible] came to a halt with covid. We still have access to the pool of providers that do perception studies and other surveys. Anything that we add to our plate is going to be a [indiscernible] there is a really interesting dynamic created by the covid crisis and by the release of the prop c funds. I can forward and share with you at a future date some of the observations were giving to the Oversight Committees. There are possibly sites and hotels, so there is a lot of opportunity in the housing markets that we think will be created by the pandemic. There is a structured spending plan which tries to address the urgent need to get the shelter in place into placements. There is a very complex structure. This is not exactly hand in hand with affordability programs represented by the housing bonds, but i can say that we can bring you a presentation of how they work together. I know everyone is busy and its an allhandsondeck situation when it comes to housing and the health crisis, but historically speaking, where there is a great state of emergency and a lot of need is present. I think its important that our oversight as a committee is important as every single dollar that is spent. While there is critical need, we need to make sure that all the available funds are going to those in need. So i think we should double down on our effort and make sure those are kept as a priority. Peg, i want appreciate to take you up on your offer. If you for a presentation on how the affordable Bonds Program intermeshes or not with the homeless Funding Program you were describing. Thank you. That would be an interesting sidebyside comparison. We can try to find a way to make that part of your december agenda. Again, our Oversight Committee was just formed for the first time last month. Its meeting tomorrow and were looking to sketch out the plans for the uses of prop c. I recommend that jane takes the question of how do we staff and continue to move forward with adequate resources to do a job, our job, governing the hundreds of millions of dollars of the bond fund in these trying times . I think we can take that offline and have a conversation directly with peg about that. Does that sound acceptable . Yeah, thats great. Shall we take Public Comment . Clerk any members of the comment wishing to comment should call 4156550001 and use access code 1467135673. Dial star three to speak. Please wait until the system indicates you have been unmuted and you can begin your comment. Please note that you will have three minutes. I see one caller on the line. My name is francisco de kosta. We cannot have any old standards just because we shout out pandemic, pandemic. Ive heard a lot about this task force, about a hundred people, for supposedly addressing housing issues, be it not directly building the housing, but losing [indiscernible] and so on and so forth. My main question is during a pandemic we need to have several incident management commander type of positions. Not some folks that need [indiscernible] and supposedly theyre supposed to be working but theyre going shopping and pussyfooting around and theyre making excuses. Regarding forbearance, we need line titem statements so that w can have catability and transparen transparency. This Mayors Office of Economic Development and workforce and the Mayors Office of housing are suspect. Audit after audit, there is 117page report over there for yall to read. Other audits done on the housing and bonding are not brought into the presentation. Again, i know the Controllers Office must do what they have to do. Make no excuses because you are spending time that accountability and transparency is thrown to the wayside. In the interim, there are Food Security issues. Children, infants, our youth, our elders, those with compromised health who are physically and mentally challenged are suffering. Committee members, take your responsibility very seriously. Do not listen to the excuses of the Controllers Office or the other entities who make general statements. Thank you very much. Thank you, mr. Kosta. Clerk there are no additional Public Comments. Great. Shall we move on to number eight . Did you want to go back to the m. T. A. One . I have a colleague who will help me with the presentation. Item 6, presentation with the San Francisco Municipal Transportation Authority about the 2014 transportation and road improvement bond and possible action by the committee in response to such presentation. Good morning, Committee Members. Jonathan rewers from the m. T. A. There is the presentation. Fantastic. Giving you an update on the 2014 transportation road improvement general obligations on. Just to quickly cover what were going to cover today, were going to give a general update on the program. As the committee will call, there are a number of subprograms. We will give a quick update on the third issuance of the bond and Lessons Learned on the obligations of the bond. We will talk about what we hope to be the fourth and final bond issuance which will be sometime in 2021 and then we will give some quick project highlights. To date of the 500 million that was approved by the voters, the city has issued 377 million. The third issuance was 138 million, of which 134 million will be available for projects. That issuance was completed last month. Funds are going into projects as we speak. As the committee may recall, the bond program has a number of subprograms largely related to the work of the m. T. A. Trying to meet the citys goal of zero and implementing the programs including infrastructure improvements, red lanes, and other travel improvement projects in the city. There were also a number of regional projects. Im going to talk about the bart canopies and upgrades to caltrain specifically. Most importantly, i know it is an interest of this committee and also the board of supervisors about the rate of spending the m. T. A. Has been able to have with regard to to the bond program. Definitely we started out slow and this gets to the Lessons Learned. You will see, we did really great back in 2017 when we initially issued the bonds and then you will see very slowly we got towards the end in the First Issuance. We put a lot on the outreach for these projects. Weve used these in each subsequent issuance. Just like you heard recently from the department of public works, one close out on a number of projects, there was small balances left in facilities and in the rapid transportation programs. Most of the funds have been expended and we will move these funds to other programs that can spend them. With the second issuance, you will see that line advance much more quickly than you saw with the First Issuance and that gets to the Lessons Learned. What we did with the second issuance is we worked on projects that were close to ready for construction. A lot of the dollars in the second issuance went to major facilities projects that were ready to go. We had an awarded construction project and we were ready to get them going. You will see that in two years there was aggressive spending, but with the Lessons Learned, again, the m. T. A. Did not have a general Obligation Program in over two decades. Those Lessons Learned have paid off. Youll see again we have some balances. Im happy to report that a lot of those dollars on facilities were savings on projects, where the project ended up being cheaper than we thought. There is a minor negative in major corridor projects. Its transfers and accounting. Were working on cleanup there. Were working to get the funding for the final projects. One of the core Lessons Learned was that we had designated bond funds based on cash flow specific projects. Some had their projects up front but were waiting for the second or the third issuance. Weve learned not necessarily to bridge those dollars. I will talk about those when i talk about the third initiatives. We were working on getting those final dollars expended. The biggest Lessons Learned for the third issuance was the number of projects that we put on the general bond, we worked to reduce that number. If you look at the issuances, we had projects we were funding. We deliver very Large Capital Infrastructure Projects, but also very small in the hundreds of dollars, street improvement projects where were funding a single roll out. Were doing add ones to major Infrastructure Projects. This can result in bond funds lagging and just waiting for the major Infrastructure Projects to be completed. Youll see the list shortly. Weve also worked for larger amounts rather than just a couple hundred thousand dollars. We worked for 5 million or more to get those projects moving and having the bond dollars expended. Lastly, we made it a criteria that none of the projects be in planning or in other areas where we needed Significant Community outreach or to get legislation of the m. T. A. Word. Most of the projects have already awarded construction projects. These were the dollars hoping to pay for the projects. Youll see the list of projects and the bond amounts. Youll see there are significant amounts. The western Traffic Signals will continue on. Of the 21 million for the bart canopies, we are currently reviewing the cash flow of both the public works better Market Street projects, the phase one element of that project, and the bart canopy project. It might turn out that Market Street likes this sooner. We are doing the evaluations now. So it is possible that both the dollars for that category had to do with Market Street and the canopies are on Market Street. We feel like we have the flexibility to spend those dollars on either. The objective is the funds and spending those. Youll see that the art is similar to the art that you saw with the special issuance. We hope to have these bonds [indiscernible] june of 2022 for our next transportation general Obligation Bond. Each of these bond programs is projected to be 10 years, so hopefully we will hope to complete in eight years. We take our Lessons Learned on project delivery and bond spending and accounting for the dollars, and i think those lessons have paid off. On slide 12, these are the larger more significant projects on 19th avenue, 16 street in the mission. We have two very significant Street Project and signal projects. The signal project will run a little bit late. Im going to address that at the premeeting. We did talk a little bit about that. Hopefully that will be in construction shortly. Lastly, the fourth issuance. One of the Lessons Learned was about fewer and fewer projects. The last issuance will be better Market Street and the canopies. Since the fourth issuance will be those two projects, we think we have some flexibility based on cash flow needs. We also have some significance for the safer streets project. Were waiting to see where the bits come in. Were waiting to hear on that project because it may need bond funds. Well look at the overall project when we see where we stand. You will see weve made significant improvements since the last date on the number of projects that are open. We had an investment where we were replacing our underground tanks. Youll see the 19th avenue project in a little bit more detail. Again, it is a full complete Street Project. One of the Lessons Learned is that the m. T. A. Is serious about the policy. As were looking for these larger Infrastructure Projects, weve been working with our departments at the department of public works and the Public Utilities commission to take care of the sewer and water, do repaving along these corridors simultaneously. There has been some Lessons Learned with regard to that and the amount of time it takes. I think it is in the citys best interest to move forward with this. We try to get everything done together. You will see our major Street Projects, the traffic signal upgrade is a significant project. It has been a prior to of the m. T. A. To put in pedestrian signals at a number of locations and try to get every intersection consistent with our commitment to netzero. This is an exciting project. You will see this is an exciting interprize. A lot of the work weve done with regard to vision zero is one of the bigger Infrastructure Project projects we have. On bart there was a Pilot Project done. We have a memorandum of understanding. This is with caltrain for the modernization and electrification of the train that will prepare San Francisco for future highspeed rail. Happy to take any questions that you have. Is this the point where i should give the liaison report . Since i have the floor, ill ask a couple of questions. One question i wanted to ask on friday is have you had any further issues with shifting funds in the programs, the type that we have discussed in the past . Thats a good question. Id love to take advice from the city on this. When the bond program was set up, there are a lot of programs. We tried to appropriate the dollars through street and transit, which are subfunds that allows the flexibility to move dollars based on cash flow needs. I think we really learned the lesson on the second issuance and we did a supplemental appropriation to fix that where we moved a lot of the First Issuance dollars because they were ready to go. Through the program we learned a lot of lessons on project delivery and timing and bond management. It took us a little bit of time to figure out how to work this general Obligation Bond. Good. Regarding the section of the report that you provided and we discussed on friday, there were 10 schedulerelated issues. There was some duplication between some of them. 10 listed. There theres additional pedestrian countdown signals listed. Theres a little bit of a conflict on the numbers. Yeah, i will provide that in i will give you a quick update on the status. Well give you a more specific update. This is around the program where we have issues and a couple of things. Just for the committee to understand, the design for traffic signal projects in the city is exclusively done by city staff, largely done by our transportation Engineering Group at the m. T. A. And any Civil Engineering work is done at public works. When covid19 hit in march, a lot of our staff with the shelter in place went home. While we can provide laptops and other things, there were other things that they didnt have. Were looking at correcting the schedule schedules and the workloads. One other question and then ill get to the liaison report itself. Under the upgrade project and in looking further into the report, i didnt find that. Could that have had reference to the geerie signal upgrade report . It is possible that it is a typo. Either we didnt produce the specific singlepage report or its a typo. Okay, great. Those are my questions. Well give a quick report and then let tim talk because he was involved in the liaison meeting on friday too. First off, it sounds as though things are going well enough, given the covid delays and ill talk about that in a second, but the fact that you are implementing Lessons Learned from the First Issuance as you issue the second, third, and finally the fourth bonds, thats to your credit. Im glad to see that. In reporting, im focusing on the potential delay claims. Those are the sections of the report where there are these 10 issues and the individual reports in appendix c arent on the same timeline as in the report itself. Jonathan im sure will be communicating that further. Because of my background in construction management, i fear delays. Delays are where the owner pays extra money to have their project delivered. M. T. A. Has some exposure in all these covid delays. The city issued a twomonth shutdown and thus caused delays. The city may be able to argue that this was an act of god, that the risk is shared between the contractor and m. T. A. , but given the amount of losses, the value of the losses that the contractor will incur, i wouldnt be surprised if theres some litigation. So i advise that m. T. A. Stay in close touch with the City Attorneys office about this because m. T. A. Will not be the only owner that will have these types of problems. Further, i would like to meet as a liaison a little bit more regularly with the m. T. A. Staff in particular until the covid issues are resolved. It can be really informal. We can do it this way. That way i dont have to wear pants and we can all be as casual as possible. Im focusing on this. [indiscernible]. Any member comments . I have a couple questions. Great. Thank you. Regarding muni and the financial situation, i understand that theyre revaegt all the different projects. I guess my question is, it seems that all these projects are holding during the pandemic. As a frequent muni rider, i welcome that. Are you im sure you are, are there going to be some changes or not. Its anticipated that muni will eventually be back to full service. Full service might not be what it was seven months ago. What is your understanding of that . We are evaluating things month to month. Were giving updates to our board on ridership and where we think our finances are. I think we need to wait for november 3, see how the caltrain issue goes. What comes out of washington in the form of federal relief bills. Its really hard for us to answer questions like that. This is a milestone that could lead us in one direction or the other. With regard to the bond program itself, a lot of the projects in 2014 and even today were designed to make the Transportation System more efficient and safer. More efficient, as an like, there is a state of good repair project that needs to be done and we have been significantly behind on these things. Were enhancing the system at the same time. If you want to realize the travel time, we dont want to slow that down. On the street side, we want to get as much safety work done as possible. As we work with our contractors, we want to get this done so that our contractors can get as much done as possible. Any Capital Investment that can realize operational savings will impact the future, however Enforcement Services we put out there and what we do on the street. And the main project, the eight, 22, the l, the major transit lines, regardless if ridership drops down, i appreciate that. I have another question. In addition to the bart canopies, what are some of the better Market Street Capital Projects for funding, could you remind us . Were in the process of reintroducing the public back to this project. It is led by the department of public works. The phase one project will be improvement projects from fifth to eighth street. Phase two is plans to be improvement improvements to build the f line loop, which will allow us to turn it around sooner. After, its a major enterprise. The project is hundreds of millions of dollars. Those are the first phase planned improvements. You reminded me. Your part of the better Market Street program is transit. Nothing really on the sidewalks. This bond Program Includes a complete part of the street program. There is the signals category of the bond going for the traffic signal replacement. There is an accessibility component of the bond. Those are meant for the canopies. State regulation requires that the portals on Market Street be covered. That allows for the escalators to remain in a state of good repair. Okay. Great. That sounds great. Thank you. Clerk members of the public who wish to provide Public Comment on this item should call 4156550001, access code 14671356 1467135673, then pound and then pound again. If you havent already done so, line star three to line up to speak. A system prompt will indicate you have raised your hand. Please wait until the system indicates you have been unmuted and you can begin your comment. Please note you will have [indiscernible] there are no Public Comments on the line. Okay. Lets call the next item. Clerk item 8, presentation from the City Services auditor regarding the citizens general obligation Bond Oversight Committee scam near 20182019 annual report and possible action by the committee in response to such presentation. Can you see . Good morning, Committee Members. My name is marnie, and i will be sharing my and my colleagues work on the 201819 annual report. We prepared this highlevel overview of the citys general Obligation Bond portfolio. We issued this report in early march and we were scheduled to present at the meeting that was supposed to happen back then. Thank you for being here to share this. We began compiling this in august of 2018 of the prior fiscal year. It has to be a little bit old at this point. Apologies for that. We requested budget schedule and scope data from managing departments, conducted interviews with program staff. Ill try and be brief here because the individual bond summary slides that we had prepared for our lengthier march presentation are in the appendix. This graph is an overview of spending for all programs. With the most recently authorized bond programs first. At the top are the 2016 preservation and seismic safety and Public Health and safety bonds. The graph is a combination of data as of june 30, 2019, from the original report with a bright blue bar added for data as of march 2. We prepared this graph to give a newer picture as of last spring, but the rest of the information in the report is as of june 30, 2019. Throughout the report and in this presentation we focused on remaining bond funds. Across all programs there were 1. 2 million remaining in bond funds as of june 2019. The most recent bond programs at the top of the graph have a large balance as illustrated by the light blue bar. The bright blue shows that spending progressed for some bond program. Overall bond programs are on target with limited change in scope and some have experienced some delay in schedule of play. We heard about the various ways that bond programs are mitigating scheduling delays caused by permitting and other permit approvals. The traffic managers are increasing their coordination with the department of building inspection. The s. F. G. Managers are minimizing the need to get approvals while conducting the works. Programs such as transportation and road improvement blonds appreciated have the flexibility to shift funding across components, as this allowed them to ensure the Timely Delivery of projects and prompt spending of bond funds. However, the drawback of this is that it made oversight a challenge. Capacity in the city was important in highlighting errors and omissions and subsequent delays. Public health and safety, this year we organized the report by subject areas. Public health and safety, transportation, and Affordable Housing, and parks and recreation. Im going to go through each of these subject overviews or areas and well get some highlights across the four bond areas of Public Health and safety. Voters have authorized over 2 billion and there are 434 million in bond funds remaining. The 2016 Public Health and safety and 2014 bonds contain the majority of the remaining funds and work. So the Public Health and safety bond authorized 350 million for six components and has spent 35 of the total budget or 55 of the issued amount and thats of june 30, 2019. Milestones were the demolition. It started on the employment facility. Central Administrative Offices for the department of homelessness and Supportive Housing were completed. The 2014 bond authorized 400 million and has spent 54 of its budget. For the Traffic Company and Forensic Services facility, a large portion of the bond, demolition was completed, foundation permits issued and other permits underway. These milestones were expected to increase spending in the coming years. The fire boat station moved into design and permitting. Across both the transportation and road improvement bonds, the voters authorized 748 million and 305. 9 million remains unspent. The majority of the transportation spending is associated with the 2014 transportation and road improvement bond as weve been hearing about. It authorized their funds and had some remaining. [indiscernible] we reported that four projects were completed over the review period. As we heard, the largest project funded by the bond is the better Market Street project which pulls from six of the bonds different components. Delays of the project plan and completion of the Environmental Impact report contributed to an 18month delay. With eight components, this bond program has more components than other bonds weve covered. This makes tracking a challenge. For Affordable Housing across at the time the two active Affordable Housing programs, voters have authorized 570 million and there were 397 million in bond funds remaining as of june 30. Since we just heard, with more recent updates, im going to move on to parks and recreation. For parks, the city has two active parks geo bonds 2012 in 2008 for which voters authorized a total of 380 million. Across both bonds, 52 million remained. 96 is associated with the 2012 bond. The 2008 bond is nearly complete. As of june 30, the 2012 bond had expended and encumbered 144 million, which is 74 of its budget. 13 projects were completed in the reporting period. Waterfront project completed one of their projects. For the fiscal year 2020 period, were considering two different opti options. Our Office Resources are being deployed to a covid19 response. We would possibly do a twoyear update covering fiscal year 2020 and 2021. This will be decided by our Department Leadership in the coming months. Any comments from members . I had a question about the San Francisco General Hospital rebuild bond and the close out. There had been some claims against that contract and they were settled, but the last i heard on the issue was the city was going to make a claim against the errors and omissions carriers on the settling of that claim. Do you have any update on that . I dont have information to that level. We do a highlevel review and its not as were not as recent as some of those issues may have been. Probably. I would have been surprised if you had. If you were the liaison on that, i would ask. Thats all. Any other member questions . I have one. It would be better to have the 18month rather than two years. Its going to be too overwhelming or a delay for 20182019. I know you guys are working in trying continues. You said its managements decision, but 18 months would be better than two years. Thank you for that input. I would like to second that. Thank you, lauren. Its just so much information. It goes too far if it gets further out. Id prefer to see it sooner than 18 months. Thank you for the second on that. I will communicate this to our leadership. You should also, if you havent reviewed the full report, it has quite a few sections of good information, overview information. I feel like this is valuable even on its own even though its updated. Marnie, can you go back to slide two, please. I did have a question in preparation for our next agenda item. Do you know which ones of these d. P. W. Youre managing directly . Public health and safety, it has some involvement in 2014 transportation and road improvement through the better Market Street bond. 2014 and 2010 bonds and the 2008 Public Health and research bond which is nearly done, but that is d. T. W. As well. Okay. So well over a billion dollars . Yeah, i havent done that calculation, but yes. Any other comments . Just to take that one step further, marnie, do you know which of these sites is managed by p. O. C. . In the 2014 and 2010 bonds, there is the there are two components, one in each year. Those are both managed. There is one component in each year of those bond components. I know weve been hearing in the media about the Community Benefits program. Do you know if theyve done anything on those . I havent heard that and it has not been related to the components listed here. I dont have information about that if that is the case. We can have a conversation so i can find out about your questions. The Community Benefits programs i think are primarily focused on those experiencing Significant Impact at the water. Again, i want to understand your questions better and i can keep the information that is relevant. I think that even if it doesnt affect the projects were governing, to get a presentation from the p. U. C. Representative about what that is and to clarify its not part of the bond money were overseeing. I understand it has to do with some of the other bond money and commissions, i would just like to know if this is used for any of the projects were seeing . Well get you some General Information on this. Oh, sorry, i think i have General Information. I would like specific information. I would like to know if this is used by the [indiscernible] it sounds like you want directly from the p. U. C. , who is ultimately the responsible party. Great. So the lest of us understand what were talking about, what is the Community Benefit program . Do you want me to marnie, do you want to peg, do you want to take this . I actually dont feel qualified to give this overview. It hasnt come up with respect to the geo bond portfolio. Im minimally aware of it. We can do it in the future. Any other member comment . Thank you, marnie. Thank you. Clerk members of the public who wish to provide Public Comment should call 4156550001 with access code 1467135673, then pound and pound again. If you havent already done so, dial star three to line up to speak. A system prompt will indicate you can raised your hand. Please wait until the system indicates you have been unmuted. Please note that you have three minutes. There are no callers on the line. Should we move on to the next item clerk item 9, presentation from the City Services auditor regarding the Public Integrity review and possible action pi the committee in response to such presentation. Before we start, do the members want a fiveminute break . Okay. Awesome. Mark. Good morning, Committee Members. Let me first make is that your i have my presentation up. Can you see my presentation . Yes. Perfect. All right. Good morning again. Chair and vice chair, congratulations, members of the committee, mark de la rosa. Thank you for the opportunity to present to you today. A couple of key deliverables in the audits that weve been working on over the last few months in relation to the Public Integrity reviews we are conducting related to the mohamed nuru investigation. I know there were a couple of investigations earlier on that i hope to give some background on before i go into the findings and recommendations themselves. The first review that we conducted that we issued back in late june relates to the San Francisco public works contracting. Its basically looking at the procedures and activities surrounding the various types of contracts they enter into in completing and conducting their normal business and projects. The second one ill be touching on relates to gifts to departments from noncity organizations. This was something we issued a few weeks ago in september and ill be provided you with background and the key findings and recommendations surrounding these two. Just by way of background and context, in early february was when the mohamed nuru case became public. Thats when we and the Controllers Office set out to conduct a series of assessments and these assessments are really focused on internal controls reviews. By that were looking at key processes, procedures, policies that intersect with some of the key things that were brought about in the f. B. I. Reports. The f. B. I. Report that were referring to included a number of certain allegations that were being investigated by the f. B. I. And have eventually been part of what the citys Attorneys Office is conducting as part of their lead investigation. Really, the goal of what were doing in the Controllers Office through these reviews is to offer recommendations and how we can tighten up these weaknesses, ensure improved transparency, that we ultimately safeguard the funds for the city and county of San Francisco. The citys Attorneys Office, as i mentioned, is leading the investigative part of what the city is doing. What they have been doing is focusing on some of the Key Employees and contractors that have been implicated as outlined in the criminal charges brought against mr. Nuru. Just to give a quick outline for those needing a reminder. I think peg touched on really the key ones. Those are really that mr. Nuru accepted bribes from certain city contractors. Mr. Nuru also provided Insider Information to come soft vendors and his associates that provided them with a leg up in terms of bidding on certain work for the city. Mr. Nuru was also part of a situation where they attempted to bribe an airport commissioner in exchange for information regarding the contracts. This is mr. Nurus acceptance of bribes from certain contractors and providing Insider Information that steered the contract or the work to certain individu individuals. I just wanted to highlight some of the aspects. There were subpoenas issued to many contractors in the city. Just because they received subpoenas doesnt mean theyre charged with anything, but this is to assist with the various aspects of the investigation. They canceled a contract that was associated with mr. Nick beauvis, an associate of mr. Nuru. That amounted to a cancellation of a contract for 171,000 for a portable toilet contract and this is related to the Pit Stop Program that public works administered. They contributed to the release of certain City Employees and officials. As peg mentioned, they initiated the process for barring azun works inc. , which is one of the contractors implicated. That relates to the owner being accused of providing mr. Nuru with certain gifts in exchange for the appearance of pay to play. In conjunction with that, i also wanted to highlight that the Controllers Office also set up our Public Integrity tip line to really aid in the City Attorney investigation. Since early february to last week, we received 61 tips related to the investigation. There has been one more added to this tally since i put this together. What we do with the tips is forward them to the relevant entities and some we took on as our own whistleblower complaints as part of our Whistleblower Program. A certain number of the tips we sent over to the citys Attorney Office as it relates to the various facets of what theyre working on. The findings and recommendations that weve issued, were calling them preliminary because they are technically still drafts. We are going to be compiling one compendium of findings and recommendations. We are finalizing some of our findings and our recommendations just to make sure that we dont overly provide solutions to some of the weaknesses, but to defer to the experts, the certain key leaderships in the city, to come up with recommendations that are definitely more actionable and relevant to the weaknesses that we mentioned. One key thing i also wanted to highlight was to preserve the integrity of the City Attorneys ongoing criminal investigations, there are strict limits to what we in the Controllers Office can disclose as part of that investigation. To the extent they are related to the internal control weaknesses that we have been reviewing, we do have that information. So let me just go through very quick highlights or background and context of the work that we issued. This is to provide you with a snapshot of contracting public works. I think it was you, chair, that added that this was close to a billion. I think that was close and right on. This is basically a tally of all the contracts they have let since 2016. Over half of those are Construction Contracts and those are the ones that, as you all very well know, are the ones that are working on contracts and the various things in public works. That amounted to 1. 2 billion out of the 1. 4 billion. There are also Construction Services and those sorts of professional services that are captur captured. There are also a few nonConstruction Services is he department of public works. This next slide goes through the various methods that public works went through to let those various contracts. As you can tell, the majority of them went through a formal solicitation process. Those are for various Construction Contracts. There are also a few dozen of the contracts that did not go through any solicitation process and there were those that went there an informal solicitation process, which is an abbreviated form of the formal process. Really, the findings related to those that were on the bottom two, the formal solicitation or no solicitation required. Ill go through that a little bit more. I also wanted to emphasize that the last contracting method here is the grants line. Ill talk a little bit about how the city does its procurement for its grantsrelated contracts. Ill go through very quickly just in the interests of time some of our key findings and recommendations. Those we included on our first deliverable, the first being that public works is not overseen by a board or a commission. As you all very well know, chapter 6 of our admin code lays out the authority of what we call our chapter 6 departments. Those are the m. T. A. , p. U. C. , public works, airport, rec and park, and all of the other chapter 6 departments are overseen by a board or a commission except for public works. All the other ones have an external entity that goes through or approves the various contracts that they let. There is an external layer of review that goes through the chapter 6 contracts. Even within that framework of no boarder commission, we also pointed out in our report that back in 2011 the thenmayor lee delegated his authority for approval of the Construction Contracts at public works to the departments director, mr. Nuru, who then delegated, redelegated, the authority to be the final approver of those contracts within public works. The key recommendation here is really for the mayor to delegate to change that setup and for the mayor and the board to amend chapter 6 to prohibit such delegation to the Department Head for such ooift activities. The second one i want to emphasize today is projects related to homelessness. As some of you may or may not know, there were revisions to chapters 21 and 6 of the admin code really providing for the acknowledgement of projects related to homelessness can or are allowed to bypass the competitive solicitation process. This was related to homelessness being an emergency situation in this city. Just by definition, projects addressing homelessness were defined as projects to prevent homelessness through subsidies and project projects to help wi homelessness. What we provided is a quick synopsis of the various concepts of public works that related to the chapter 6 section that was on the projects addressing homelessness. Since the issuance of our report, the interim director of public works has since set out to require any such contracts to go through something very similar to a formal solicitation process that is well documented that has certain criteria that bidders are being held against and there is certain scoring and reporting and documentation of these processes. So our recommendation really is for public works to continue using these new procurement procedures that were implemented in february by the new interim director just to make sure that even though we do have these provisions in chapters 6 and 21 that the solicitation processes should still go through some vetting and documentation process. This next one is related to prequalified contracting pools. As you may or may not not know, chapters 21 and 6 of the admin code allows for departments to set up a prequalified contracting pool, whereby they prequalify a number of potential contractors and vendors that can provide certain types of services and the departments can pick from that pool at any given time. The finding that we lay out is there are no standard procedures for the departments selecting from those pools. The recommendation is for the stakeholders to establish a clearer guidance for departments to select from a prequalified pool to ensure transparency and some sort of a documented set of decisionmaking that was done. The next up is basically grants and what were what we point out here is there is really no guidance in terms of how departments enter into grants. Typically this is with Nonprofit Organizations in the city and for there to be a minimum set of requirements to ensure competitive solicitation for these types of contracts which we call grants in the city. The next one is pointing out that there is no Central Agency that is overseeing all of the contracting in the city. As we all know, all the chapters 21 which are the professional services that are not construction are being administered by the office of contract administration. Thats all the chapter 21 purchases that were doing. As for chapter 6, which is the public works contracts, its really up to the six departments to oversee their patterns and proximation proximations. So the findings and regulations to have a centralized monitoring of the contracting, chapter 6 as well as chapter 21. One thing that we also wanted to note on the first deliverable is the tone at the top which is really most of what we have found on the recommendations report, tone at the top was the root cause for some of the key weaknesses to have happened. Tone at the top was what this was based on. Public works staff, certain people reiterated that mr. Nuru had a tone or an ethical atmosphere that prioritized low cost, expediency, and a lack of transparency amongst staff. This is one we wanted to call out there as one of the key root causes of why certain things happened at public works. Then the last one on our first deliverable relates to gaps in our gift restrictions. Ill talk about this more in the next slide about the deliverables. Its more aligns in terms of closing loopholes in our campaign and government conduct codes. Transitioning now to the second deliverable that we issued back in september, and this is really in relation to noncity organizations and the San Francisco Parks Alliance and their role in what happened at public works. Within the context of our assessments, we really define city organizations here as nonprofits or Third Party Organizations that provide financial or programmatic support to a department in the delivery of government services, in meeting Certain Mission and vision for the department. As part of our field work when we started this back in february, we wanted to get a good sense or basically a general sense of how prevalent these noncity organizations or accounts existed throughout the city. Not really knowing how to define it, we cast a very wide net just to get information from the various of our 56 departments. What we did find is that 33 of those departments had some sort of a relationship or a contract agreement or something that relates to a noncity organization. That translated to about 588 different accounts and subaccounts. Most of these are really legitimate relationships between the departments and the noncity organizations because they entered through a contract, through a grant, having a noncity organization being the fiscal intermediary for the delivery of the different types of circumstances, but we want to hone in on these organizations, given that its the most similar to the public works subaccouns s alliance looked like. Again, by way of background, Parks Alliance is a Nonprofit Organization that provides services as well as support to a number of groups and city agencies within our City Government and beyond. In 2019 can i ask the chair for a time check because the meeting has run long. How many more slides do you have, mark . Probably 10 more slides. Ill go through them very quickly if you like. Yeah, lets get through this quickly. No problem. Basically a quick note too that Parks Alliance did mention that they werent aware of any of the actions being done by the city officials implicated. Again, these were the different accounts held in the Parks Alliance that ultimately benefitted the department of public works operations. Some were reimbursements related to staff appreciation, some were for certain programs they have, including the clean team, giant sweep, and fixit teams. This is to provide you with a background on the difference of accounts and the contribution of the expenses. This next slide is to show you the different donors that were contributing to the different subaccounts in the Parks Alliance. This part of this table is to really show how some of these donors are the same donors that are being contracted with by public works or other city departments and highlighting s. F. Clean city and others on this list. Again, this is for the various expenditure types that they have and employee events and the like. This graphical representation is basically a flow of funds starting from public works, entering into contracts with contractors. Those same contractors are providing donations to the public works subaccounts at Parks Alliance. Those are funding the various activities that the subaccounts are supporting. The first finding on this one is in relation to the payments and how currently Department Heads are not permitted from obtaining behested payments. What we did find was mr. Nuru was involved in soliciting donations for the Holiday Party that they had in 2019 and the majority of those funding were were from restricted sources. So the various organizations that were let included [indiscernible] unless specifically authorized by the board, the compliance with certain requirements on reporting for Department Heads annually to certify reports and other internal control mitigations. The second one is to basically relates to the Interested Party definition, that currently the Interested Party definition in the city does not include contractors. For this to be considered by the Ethics Commission to include city contractors in defining city parties. Anonymous donations is one that we highlighted in our findings. What we did find was that some of the friends of organizations did allow for anonymous donations to ultimately support the departments functions and activities. As you may already know, sunshine ordinance does prohibit any anonymous donations for any city function. So for the recommendations really for the department to comply with such provisions. The next one is about the lack of oversight. Basically what we found was the public works did not have an m. O. U. With the Parks Alliance, even though Parks Alliance indicated they tried to initiate an m. O. U. Back in 2019, but mr. Nuru did not accept that offer. Giving you a sidebyside comparison that there is an m. O. U. With the city organization, they have an accept and spend provision and they comply with certain provisions required by the city. Thats basically the recommendations. The last one is really about how those funds were used and how a lot of the public works subaccounts were used for appreciation [indiscernible] city funds to reflect such efforts. As mentioned, this is just two of the assessments that were still endeavoring and completing. The next one is on ethical standards for commissioners at the airport and others to see what their authorities look like in terms of procurement. Were also showing something on the department process, something related to the department of building inspections, policies, and procedures. And then again additional reviews will be added to this line, as we determine to be necessary. That concludes my presentation. Id be happy to answer any questions that you have. Thank you, mark. To pegs question, can everyone give us another 20 minutes . I know were not going to get the conversation for this completed in that time, but i would like to identify any next steps or action items that we as a committee would like to take to move us forward prior to bringing this thing in, in december. Thank you. I appreciate it. Comments . Or any thoughts on how we want to proceed in the short term . I dont have i have a question for mark, if i may. First of all, i just wanted to tell you, mark, that i thought the report was very informative and interesting. I commend you for all the work do you have done in the past year and particularly in the pandemic. On behalf of the citizens of San Francisco, i thank you for your effort. My question is i loved all the recommendations. Remind us how this comes from a recommendation out of the Controllers Office to codified, executed, monitored, how will any of these happen and in a timely way . Thank you. Good question. Through the chair, this is actually thank you for that question. There are a number of efforts that have been initiated by the board of supervisors. So part of our reporting on this is that we have presented in front of the government audit and Oversight Committee at the board of supervisors and weve also presented the same set of information to the Ethics Commission. So basically what depending on which recommendation youre referring to, but there are those that are definitely revisions to the admin code or some amendment to city law. There are probably a handful of efforts that have been initiated by a number of supervisors in relation to the recommendatio r. One good example is on the behested payment finding, so there is already a legislation introduced to prohibit any nonelected Department Heads to be to not be part of that requirement. So thats one. Theres also one legislation that supervisor stephanie has already put forth that are related to prequalified pools and how there should be more structure and transparency to that. There are other recommendations being endeavored by the Ethics Commission in terms of the definitions. So i think its a multifacetted approach in terms of how these words get turned into an actual action item. [please stand by] to be the squeaky wheel, the pain in the neck, the whatever dont let all of your work just sit on a shelf. I mean, please keep pressing the elected officials and the commissioners to act on your recommendations and to put their money where their mouth is. Thank you. Jane, did you have something . I mean, its actually from my personal experience indiscernible definitely i would love to take a little bit more offline. I think that a lot of these recommendations are really great from the standpoint of like how do we create action. And so i definitely want to stay uptodate and i have been reading these reports before they were even going to be on my calendar and im really interested in this stuff. So happy to chat with you more about some of that. I definitely want to see more how we can make this i mean, youre putting out great reports and great recommendations. How do we make it more than that. Other members . So, you know, i think that one of the things that comes to mind for me is how does this affect our work and, you know, the what weve been, you know, what weve been told over the years, this happening and where we are now. I think that theres quite a bit more to look at this. And we as a committee, you know, so weve always functioned in this the whole committee gets together and addresses pretty long agendas and we sort of have a requirement to hear each of the bonds though the 2011 one was a long time ago and all of the money is spent. So thats the job for the main committee. But we do have well to the chair, we do have the ability to form a subcommittee that could focus on specific areas and spend i some more time in goingn deep and that is something that i would actually recommend. I think that we would need i dont know if mark is still on mark blake i think we would need three people there for i forget what the quorum is. So wed need to engage in more than just as jane had said, just a conversation, but like a full on, you know, hearing thing. But i think that we need some kind of quorum. Im not sure, mark, can you comment on that . You need a quorum for what . If we had a subcommittee, can we have three people . Let me check your bylaws real quick. Okay. Okay, ill get back to you. Thanks. So, kristin, thats a chain of the findings to date and the findings that will probably continue affecting the bondfunded program, right . Because i think i thought that mark pointed out that it seemed that i thought, fortunately, most of whats being uncovered just so far, you know, things that are still ongoing, really hasnt been in these major Capital Projects, in this bond fund. Its in the penny stuff, the holiday parties for staff. Or contracts with private Development Projects that the bond proceeds have nothing to do with. So you just really want to tease out if anything that is uncovered so far, you know, maybe a process, but as things get uncovered and it going forward, are any bond programs affected by that . Yeah, and that is sort of looking forward. But i also want well, its up to us, but what comes to mind for me is looking backwards, you know, i worked closely, as many of us with d. P. W. On the health bonds and i have had complete trust in them in everything that theyve been doing. And so, you know, as a Governance Organization i wonder, you know, would this is this appropriate for me to have, you know, asked different questions and understood things differently than i do today. I mean, you know, what can we learn from what weve done over the years. I dont know, but i first started on this committee not this time but a while ago you know, d. P. W. Didnt control these projects as much as they do, 1. 4 billion of it. So we are we are as a committee going, more, more, more, on d. P. W. To do this stuff. So i would really just like to build that trust and that understanding. With the permission of the chair, this is mark blake. Yes. So getting back to you. Under article 5, section 2, with the approval of five members of the committee, the committee may form special subcommittees so theres no quorum requirement for the creation of these special subcommittees special subcommittees would be subject to the brown act and the public records act but you could just create a special subcommittee with a discreet task and that would be fine. Thank you, mark. This is peg. I hate to be the person who is raining on your parade now twice, but for my part its the supporting of this committee that we want to really get you caught up to hearing the bond programs that you need to hear and the other things that are on your agenda items and serve your needs and interests. The workload involved in supporting the committee is significant. A subcommittee would have to be done in the same way. If i could ask you maybe to, again, well bring this item back on your december meeting and maybe have a little bit more focused discussion about what the intersection is between some of our Public Integrity findings and the bond programs. And see if we can make a decision about a future subcommittee at that time. And im just very anxious about serving your interests but the staff time that is required to support it, i need to be candid. Yeah, thank you. I would support indiscernible i mean, im happy to to look forward to a report in two months on what were just saying any intersection between what theyre finding and then the bond programs specifically. If youre satisfied, kristen, its your call on that. Thank you. Bart . Yeah, so in regards to d. P. W. , they have indiscernible they subcontract out. And thats where a lot of this stuff, you know, can favoritism may have happened. But to add to the deal that we focused on and it gives us still more time, you know, to have a quick presentation because we got pushed for time and, you know, thoroughly process all of this and we can get a handle on it in december and maybe a plan. Thats all. Thank you. Yeah, thank you. Any other thoughts . So the december i mean, peg to your point, the december agenda is packed already so im not sure. My argument is that we need the space to have the conversation and the time to have this conversation. So thats thats my concern about pushing it to december. But we can. And we can take the new chair can take up some of the bonds and stuff and rethink that. Yeah, i just have a comment about about our scheduling. Maybe we just need to add an additional meeting or the subcommittee can take on some of that burden of looking into what has been going on. But i think that what we keep hearing is that the biggest problem well, the tone at the top, and i know that weve focused on on governing the bond money and making sure that its spent on time and as on budget. But i think that transparency and accountability is so important and especially at a time when the public has probably lost a lot of faith in the government oversight or potentially managing these funds without all of the proper oversight. That it should be it should be prioritized. So i dont know if theres more budget to add staff. Well have to ask about how to facilitate it, but i think i think that its a big priority. So, i mean, theres how to staff it and theres the existence of it. Any reason to not vote on the creation of this thing and then figure out how and when to staff it afterwards, like, are those not two Different Things . Because, you know, again, its an emerging issue and its an ongoing issue and waiting another two months is going to push it out. This is peg again. Im just looking at the work plan and the december meeting were bringing back the rest of the bond programs just to try and to get you caught up to your schedule. Were bringing back the Whistleblower Program. A construction audits presentation, if there is a construction audit at that time. And maybe the cssa work plan for the current fiscal year. And then youll sort of being caught up with all of the programs you need to hear and the major subject matters that you hear outside of the bond programs. Again, i guess what im sort of suggesting is that we look and see if we can bring just a very short item that would be added to your agenda item and that would specifically speak to any intersection that were seeing between the findings that are being made by our audits unit and the bond programs specifically. Just to help to answer that question for you. And then we could make a decision at your december meeting about whether or not you wanted to go forward with a subcommittee that, you know, focused more specifically on the reports or looked into the decisions and the recommendations that are being made out of those reports and specifically how they impact the construction compacting processes that are key to the bond programs. Again, so my concerns are multiple. One is just getting you kind of caught up to your web program. And, two, is the significant effort that is required of our office to support meetings. Not that we wont find a way, we will find a way if thats what you choose, but im trying to modulate the workloads in both directions. Yeah, indiscernible . If anybody is interested, you can set a motion and we can vote on it. I think we should create a subcommittee. So thats a motion . Yeah. I would second it. Anybody have any comments or should we take should we vote . Oh, i think mary, do we need to take Public Comment before we vote, dont we . Or is that after . Mark, can you provide guidance on that . Clerk yeah, you should take Public Comment before you vote. Thats kind of how i remember it. Clerk yes. Okay, Public Comment. The members of the public who wish to provide Public Comment on this item should call 1 415 655 0001. Access code, 1467135673. Then pound and then pound again. If you havent done so already, please dial star, 3, to line up to speak. A system prompt will indicate that you have raised your hand. Wait until the system indicates that you have been unmuted and you may begin your comments. Please note that you will have three minutes. We have one person on the line. So, again, my name is francis codacoska and i would like to point out to the committee that the citizens, the constituent, san franciscans matter. And, therefore, Public Comment is very, very important. But as some of you have alluded the public is fed up with what is happening in the city. And so you have to have a chec checklist. What is happening behind the scenes . You passed a bond measure, indiscernible the bond measures, but why is the money wasted . And how is it wasted . If you all do a needs assessment, shame on yall. A lot of the money is given to the machine. You know who belongs to the machine. Why are the same ones guarding the same projects. And i can name some of them. And it can be a light a little bit. indiscernible audit them. Find out why do they make so many change orders. Then find out why are they the panels that choose them and qualified indiscernible who believe in accountability and transparency are not chosen. They again and again and again are not chosen. Crooks, corrupt crimes, are chosen. And you Committee Members have no idea because you dont know whats happening at ground zero. Someone has to give an orientation. Now the subcommittee that you are forming should include people like dr. Kurl, and larry bush, bob bonstock. And i can name some more. Dont name me because none of the meetings go in the right direction because i go for the jugular. Shame on yall. Shame on yall. I have been listening to the Controllers Office, oh, you know, i give you some pointers on how to do this and that. No, no, no, we the people are fed up. We are fed up with the controller because the controller and the City Attorney are taking the indiscernible on the street. We the people are fed up with the controller and the City Attorney. With the Ethics Commission and the Sunshine Task force. Thank you very much. Thank you, mr. Costoff. More Public Comment . Clerk no additional Public Comments. Okay, lets call the question. Clerk would you lick me to call the roll . Like me to call the roll . Yes, please. Clerk [roll call] eight votes. Great. So it passes. So to the chair and vicechair, i dont know i promised everyone 20 minutes and we have about two minutes left. We could ask for volunteers to a subcommittee well, thank you real quick, how about that . Who feels like they could spend a little time on this assuming that we work out the staffing issue that peg has brought up . I can also. Okay. Well, lets start with that. Thank you. And then please reach out to the chair and the vicechair if you were counted today or you change your mind. In the effort of time, is it possible to would everyone be comfortable not doing the last agenda item . I dont know if thats allowed. Remind me what it is. It is the general, for the Committee Members to comment or take action on matters. And the fiscal year, and the work initiatives and the kitchen sink at the end. Maybe just remind anyone that if theres any liaison report its i cant remember, im sorry, on the december agenda to be prepared for that i dont recall the way that brian has us to do it today. Good point. Excellent. If nobody has any questions im not sure that we need to take Public Comment one more time or call this adjourned . You should do Public Comment on this last item. Okay. Yeah. Clerk okay, members of the public who wish to provide Public Comment on this item to call phone foa 1 415 655 0001. Access code 1467135673 and then pound and then pound again. If you havent already done so, please dial star, 3, to line up to speak. A system prompt will indicate that you have raised your hand. Wait until the system indicates that you have been unmuted and you may begin your comments. Please note that you have three minutes. There are no Public Comments. Great. Unless theres anything else i think that we are adjourned. Thank you, everyone, for your time and patience all of these