Transcripts For SFGTV LIVE BOS Budget And Finance Subcommittee 20170420

All right. Ladies and gentlemen, good morning the meeting will come to order this the regularly the Budget Finance Committee excuse me board of supervisors budget finance subcommittee im supervisor cohen chair of this committee and to my left is supervisor katie tang and to my right is supervisor yee and our clerk mr. John carol and linda wong thank you jesse larson and phil jackson from sfgovtv so for assisting us today madam clerk, any announcements . Devices. Completed speaker cards and documents to be included should be submitted to the clerk. Items acted upon today will appear on the may 2 board of supervisors agenda unless otherwise stated. Thank you very much call the first item Revenue Bonds or commercial placing the total Principal Amount of San Francisco International Airport subordinate commercial paper notes for any lawful airport. Thank you id like at a call kathy from the airport to make a brief presentation on this item. Good morning chair cohen im kate hartley with the San Francisco International Airport if i might make a suggestion to call item 2 since the budget Analyst Report addresses both piece of legislation madam clerk, call item number. A aggregate Principal Amount of San Francisco International Airport second series Revenue Bonds to finance and refinance airport capital plan aggregate airport shrina sami vs. The department of building inspection at 555 33rd avenue. Thank you members of the board kathy with the San Francisco International Airport the items before you are requesting approval of the supplemental appropriation one for 4. 8 million consisting of 40. 6 billion in new airport Revenue Bonds bopped authorization and 4 hundred and 74 previously thooshsz capital bonds that request see the authorization to sell in the airport revenue bond and increase the commercial paper by one hundred Million Dollars for Capital Improvement projects sfo use the capital be airport bojdz to finance the capital plan and uses commercial paper a short term Financing Mechanism for cash flow requirement prior to the long term bonds the property resolution will authors the sale of bonds in the amount of 4. 6 billi 4. 6 billion and an additional 100 million in the paper in before you appropriates 4. 8 billion of the airplane capital plan bonds at sfo last fiscal year Airport Passenger levels hit projection for 5 years in the future to fiscal year 2021 led to a demand for public that concludes my remarks and Ground Transportation as well as an increase in security requirements and infrastructure urban designs the airport prepares a 5 year capital plan in order to priorries the essential projects the capital plan is reviewed by the finance staff and the committee and the Controllers Office and is approved by the citys Capital Plan Committee the airport capital plan project to be funds to the legislation before you are focused on projected air traffic and passenger demands Major Projects to be funded by the subject bond precedes are the air excuse me improvements Airport Support improvements and terminal improvements and utility improvements the budget analyst has one hundred reviewed these im joined by the finance director kevin and im available to answer any questions you might have. Thank you very much ms. Wagner appreciate our presentation no questions at that time i suggest go to Public Comment and what is the public has to say all right. I understand all right. Go to the budget Analyst Report but looks like no Public School lets see what hashs say. We note the airport capital plan is the requested 4. 3 billion in new bond authorizations that file and then an additional 4 hundred and 4,832,455,418 in prior airport capital bond which was authorized by the board of supervisors but not sold the sources and use of 4. 8 billion in table 2 on page 5 of the report on page six the major Capital Improvement projects to be opportunity by the subject bond preys are on pages 6 and 7 of the report and also an appendix provided by the airport that shows the budget details beginning on page 9 of the report on page 8 we note the airport estimates total debt service of 10 plus bloinld in principle and in interest annual debt service is three hundred plus Million Dollar a comment ill make as you may know under the airports break even policy the airlines that are required to pay the difference between the budget is whatever the operating expense the difference between the 9 Airline Revenues and the expenses in effect any increase expenditures will be absorbed by the airlines through fees and terminal charges we recommend you approve the proposed ordinance. Thank you well take that under advisement anyone wish to comment on item number two minutes youll hear a soft chime with 30 seconds left seeing none, Public Comment is closed. Make a motion. I make a positive recommendation to the full board. Motion and accepted well take that without objection. Mr. Clerk. Agenda item 3 commission to execute services with mott of the exceed 21,000,000 and with a time from august 1, 2009, through april 14, 2018, pursuant to charter, section 9. 118. Public utilities commission. Welcome. Morning supervisors dan wade the director of capita water projects and programs for the San Francisco public works and here this morning to talk about the amendment that were requesting for a contract with Mott Macdonald for the new irvington tunnel projectconstruction Management Services this project is part of a 4. 8 billion Improvement Program this program is driven by 4 overall goals schematic liability and Water Quality and delivery reliability as well as water supply and these the new irvington tunnel projectconstruction Management Services is a very important link in to water system to provide water to 2. 6 million customers in 2009 the board approved a contract between Mott Macdonald and the city to provide construction Management Services for in project we had 15 million term with a 5 year duration its been amended 4 times since then in october 2016 the board approved a Fourth Amendment actually, the puc for 200 and 50 thousand for 5 and a half months in duration to continue the negotiations with the contractor for some disputes on the contract we resolved all but two of those disputes but have two disputes remaining and so we need additional time and money for the construction manager to assist us with closing out the contract the two disputes are an issue we have harder rock in the tunnels than previously experienced during the design phase or previously anticipated and then we have two repairs in the tunnel that were needed weve mad Good Progress with the contractor on the disputes and anticipate we show be able to resolve that without further legal action but need further time to get this down or done to close out our request to approve easement 5 on the contract increasing that by 3 hundred and 50 thousand and is duration for one additional year. Thank you is there a budget Analyst Report on this item . Yes. Mr. Chairman, and members of the committee on the bottom of page 18 of our report the subject the current total for the construction and related costs for the tunnel is 345 million plus and that is shown in table 4 on page 19 of our report that budget includes the Mott Macdonald construction Management Services contract of 700 million and the proposed request for three hundred and 50 thousand amendment it is a cost of 21 million plus we recommend you approve that resolution. Thank you for your recommendation well go to Public Comment is there any Public Comment on item 3 come up seeing none, Public Comment is closed. All right. Lets take those recommendations from the budget analyst. All right. So ill make a motion to. Send it to the full board with a positive recommendation. Okay without objection. Agenda. Call item 5 and 6 together. I will item no. 4 ordinance amending the administrative and environment codes to require that any new Passenger Vehicles in the city fleet by zero Emission Vehicles by december 31, 2020, and to encourage selection of zero Emission Vehicles in other vehicles classes as technology improves. All right. Thank you. Supervisor tang thank you so today your city family celebrated earth day that is on saturday with our annual breakfast at the city hall and i want to thank the wonderful sf environmental staff we know Everyday Needs to be earth day and if we dont collectively take action to deliberately stop well not to have the earth to celebrate one of the most existing and meaningful issues ive been working on is around sustainability and the protection of our environment one the ways and San Francisco can do our part to evaluate the footprint and change our behavior for the negative declaration negative impact this seeks to change the types of vehicles are City Employees drive the legislation requires all late night will be zero Emission Vehicles unless a waiver or exemption like Public Safety or Emergency Response use requires well have an amendment for this by the year 2022 the light passenger fleets will transition to zero Emission Vehicle and 10 percent to address the range and challenging issues for the department that contemplates future technology and want to encourage the City Departments to adopt Better Technology that is available we also hope that legislation will really cause a shift in the market and lead to the availability of additional zero Emission Vehicle like the light duty trucks and i see that legislation as a huge opportunity for office of Economic Workforce Development so we as a city develops more clean meblgz mechanics a huge program introduce city college that will be wonderful to learn the new skills and adopt to the environment outside of San Francisco and make them competitive with high sought after skill sets with that as is legislation, however, ill be proposing some amendments to address some of the concerns ive heard so number one, and members of the board a summer sheet im allowing for the existing usable fleet by the year 2022 ramp 2020 the reason that every year our city currently off roads one hundred passengers so the contribution of the municipal fleet to 20222022 and that assumes were not were reducing the vehicles we have in the city fleet and then to clarify the purpose of those new vehicles needs to be zero emission under section 40 is the depiction to clarify f we added a definition regarding the light duty Passenger Vehicles to clarify separate and apart in the ordinance which is the health air and transportation ordinance what we mean by this legislation and essentially meaning Passenger Vehicles no trucks are included as part of this analysis we clarify emergency vehicles and is there are existing exemptions for emergency vehicles but into the health air and transportation ordinance we clarify that unless your vehicle is equipped with lights and sirens vehicles use this for administrative function for passenger transplant shall not be considered a zero Emission Vehicle if youre trying not to purchase the zero Emission Vehicle we add existence for general passenger advances advancing and the hybrids and clarify the intent of the legislation only light duty Passenger Vehicles must be zero Emission Vehicle and with the plugin vehicles were allowing 10 percent of nonexempt fleet to be ev for the additional option and plugin vehicles require the level two plug ins so the waiver we clarified the department will submit one waiver requesting the Zoning Administrator to specify all vehicles needs a waiver exemption and the reason rather than forcing a department to submit a waiver for every single vehicle and lastly on page 6 line 10 we actually just clarified that moving forward the city could do recent options rather than pretty much we might want to consider leasing those are the amendments we can adopt or ill make a motion for later after discussion first, id like to turn to our Budget Analyst Office that will report on this after that ill call up jesse if sf environment to speak about the ordinance and some of the overall dream goals in San Francisco followed by admin from the Administration Officer and rogers. Yes. Yes. Madam chair, and members of the committee. Supervisor tang said there are various version and thats what ill recite you should as supervisor tang stated some of this has changed the proposed ordinance will necessitate the difference between seven hundred o. J. On page 24 and 5 hundred and 50 zero Emission Vehicles by december 2020 therefore the total estimated cost of respect procurement will range from 80 million plus to 72 million plus over the next 2 and a half years. On page 25 of our report we note that the total estimated cost purchase 759 between those two numbers new zero Emission Vehicles and install between 636 and 1427 will range from 23 million to 95 million those costs will be occurred through the proposed ordinance and thirty days after approval for december 20, 2020, a period of approximately 2. 5 years we note that the city currently purchases one hundred new Passenger Vehicles a year as it is written weve reviewed it will require the lease of seven hundred and 59 vehicles over the next 2. 5 years or three hundred and 4 vehicles per year on supervisor we have various other policy issues weve brought up our recommendation on page 27 this is a policy matter for the board of supervisors. Thank you, mr. Rose ill speak is about this after the Department Presentations i have questions and issues with the analysis i understand that was a large amount of analysis to be completed over a short period of time ill bring up jesse denver from sf environment that has been helping us lead the charge when it comes to protect ferguson our fleet. Good morning jesse Energy Program manager thank you to supervisor tang for her leadership of zero Emission Vehicle these the department of the environment supports the proposed ordinance and is available to support the Zoning Administrators office and is interdepartments as supervisor tang noted weve heard this morning 45 minutes ago at the mayors breakfast the city will deliver 50 percent of the citywide with Renewable Energy enabling the residents to power their businesses and vehicles with Renewable Energy it is important for the demonstrates of leadership id like to highlight the heather clean air and transportation ordinance and the lead of Zoning Administrator in implementing that and describe how the department of the environment supports the City Administration office it there 0 loading order the city transit first policy insuring that employees are utilizing Public Transportation and or sun power to get where they need to go on city business and reduces the size of vehicle fleet and insures the vehicles are right size for their appropriate case and finally that establishes a vehicle list that dictates the type ofs of vehicles the department can procure here is how we provide the assistance with the implementations of hacking to we work on the development of programs and the implementation of policies to achieve our transit first and retirement and purchasing requirements of this ordinance and annually the city Administrators Office provides a report with an annual review report of implementation of hacking to we help the singlestory for the Green House Gas emissions for the portion of the fleet that is subject to the hack to and changes to the ordinance as needed we fascinate the development of the facilities for alternative fulfills in the privately owned vehicles in the amount not to exceed for Hydrogen Transportation and necessary legislation at the board of supervisors the department of the environment also under hack to acts as guess clearly house for coordinating the applications grants the support zero Emission Vehicles and alternative fuel programs the difference is we assist the departments with grant applications upon requests in the last year that has been quite frequent as new opportunities for funding around zero Emission Vehicles need to spend themselves like the department of transportation were one of the finalist and the department of the environment is responsible for the looms of programs to encourage the private fleet operators to operate the vehicles that have zero Emission Vehicle or High Energy Efficient and the use of alternative fultz with low carbon with the you were recommendation to the board of supervisors a good t sf environment the source of the readiness ordinance that passed this week personally thank you youll for your support in closing as cochair as the mayor of the mayors Ev Working Group the department of the environment supported the city singlestory city administrator to discover that we have a deep interest and the subject experts ready to provide the support as we invest in the zero Emission Vehicles and their infrastructure. Thank you, very much. It was important to bring her up to remind everyone about the health air and ordinance were amending and adding to that for the for the most part so the departments need to refer back to the existing ordinance that is already on the book thank you for your overall so next ill bring up adam from the city administers office. Good morning, supervisors. Im adam finance and planning director for the city Administrators Office thank you supervisor tang the City Administrator Office oversee the Contract Administration both supports the implementation of this proposed change we first welcome friendly policies the two major challenges we would see related would be budget so there are significant budgetary considerations associated with that assuming we had the budget to implement happy to do so the other major considerations for lease Parking Spaces approximately 50 percent of the parking spots are leased we dont have direct authority to electrify or install chargers but perhaps addressed at the lavish the departments have additional concerns about the 10 percent they told her threshold and Zoning District through the Mayors Office there the budget the 10 percent vehicles may not be sufficient from the departments perspective to meet the daily operational needs and respond during disaster dbi for instance, has one hundred vehicles that need parking spots with a significant responsibility during the earthquake we need should the grid go down we may not have the grid to do to respond otherwise the amendments we prop a timeline and concerns. Thank you very much and im wondering i know that supervisor farrell has legislation in june i believe of 2015 regarding you know the vehicles to use data to track our fleet, you know, how many miles are driven by whom and when and ultimately analyzing how we have the city fleet by depended by department and annual reporting what we do im wondering where we are on the process that is important to the process number one, first, we encourage transit first or our own Kinetic Energy as stated do we have too many vehicles in the city fleet we should be down sizing and goat to vision zeros if you can talk about that. Ill be happy to we have thus far installed the devices in the required vehicles 4000 vehicles weve been, of course, taken a year and a half it takes time to do the installations weve been Golden State Warriors the data and observing the behaviors and use of vehicles f around idling and we found thus far with our initial data that there is some opportunity to either more efficiently manage and lifeless the fleet with full installation over the next basically most gather more information to identify vehicles that could be reassigned or toll vehicles to more efficiently have those vehicles used in reduce the size of fleet. How about for the reporting requirement. Weve issued a report if im not mistaken but we plan on doing additional annual reports. When will that be. Ill be happy to check with. So june 30th ill look forward to that report and to the Budget Analyst Office for the analysis for the cost it scary first of all, accounting but secondly, it also assumes were in the reducing our fleet so if we can all communicate about that the amended version of the report that is really important okay. I think your other issues youve spoken to about the lease parking spots well sort through with the departments individually and in terms of Emergency Response were trying to create a shift in the city you know, i know that everyone is here what do we do when we cant use a gallon car there are other solutions that rely on clean and green that can help in an Emergency Response again, we look forward to working with all the departments so alright nothing else to add. I have a question. Sorry supervisor yee. Thank you, supervisor supervisor tang first of all, thank you for championing this issue that is important so i fully am behind the intent of this but some questions i have are fiscally oriented and thank you for mentioning the protective foretelling aromatics last year the vehicles were pretty much seven hundred that are using purely gas and 6 hundred that is hybrid yeah 7 780 using gas so i guess the question i have is currently when our purchasing the vehicles like this year are they are any of these gas vehicles purely gas vehicles or all hybrids were purchasing at this moment. Supervisor thank you for your question typically we have Term Contracts that is available for vehicles a vehicle selector list we try to steer the departments towards the greenest vehicle generally one the fleet the majority are hybrid gallon and battery operated the percentage in the general fleet is very small it is dedicated to gallon some has to do with the fact that we are transitioning our vehicles over time as vehicles age the gasoline vehicles are being replaced with the plug in hybrids. The table im looking as the budget Analyst Report table one for Passenger Vehicles there is seven hundred and 80 gun and 6 hundred and 38 hybrid seems like of the Passenger Vehicles of the 15 hundred 86 approximately half of it are pure gasoline. If you look at the chart needs to be updated but under Police Department that there are 5 hundred and 9 gasoline vehicles and most will have to be exempted. My followup question in regards so lets is the hybrid vehicles whats the Life Expectancy for the purpose of city. We generally consider full life to be 8 years so we have not generally be able to have that our vehicles are replaced at the 10 or 12 year mark. And then in regards to replacing all the vehicles i guess the amended version will be 2000, 22 which is 5 years from now where would the additional funding come to replace the higher rate and weve defer to the board and the Mayors Office to identify the Funding Sources associated with that. Is the estimate correct. The estimate how much by how much it costs the city and since weve gone through the Budget Discussion how tough in the next 3 years wondering where the reserves are put aside for this. Through the chair supervisor yee one clarification im asking the budget Analyst Report to make in their cost analysis didnt take into consideration how much money from the offloading of one hundred or vehicles every year we sell so im speeding up by 50 more vehicles per year to 5 years and so again, no analysis as to how much we get out of it and then what kind of a model will be going upon in the future purchasing or leasing. And then is cost savings no longer using gas. 50 percent is a lot im wondering well and also another cost that the budget analyst mentioned and again, the infrastructure is the cost of creating are putting in the chargers is there any funding for that. That had been from the same sources. Oh, okay. Through the chair to supervisor tang have you thought about what the source of funding will be for this is a bigticket item. Absolutely there are some things well be asking the Budget Analyst Office to look at one thing for example not take into consideration the long term cost benefit analysis for example, if we have a usage of gas what does that mean and according to the legislation in june of 2015 it estimated that 5 percent reduction to a Light Vehicle fleet will result in salesforce of 2009 million over 4 years a 10 percent reduction in 5. 8 reduction over 5 years and fuel reduction will deal 3 had and 63 annual savings and a 10 percent reduction in fuel usage results in seven hundred plus those are not fooshthd into the costs as well as microscopes in terms of electrical vehicles little maintenance involved but as were giving the departments 5 year lease time to include in their capital budgets it is important and also the cost estimate in the report states that each charger costs 16,000 and folks that are here who are you know destroy experts to explain what the costs will actually be and allowing 10 percent of fleet level one chargers youll image the city the socket in our wall for example, there is a lot of fine tuning with the cost analysis and the range were presented the high range of 15 thousand vehicles in the fleet it is actually not we shouldnt be considering that because were not touching any of the light duty trucks again there needs took fine tuning with the cost analysis here well get for about the Board Meeting. Okay. I appreciate our explanation. All right. Thank you have you completed our presentation. I have. Thank you supervisor tang anyone else that. Lastly bring up Planning Department ann marie rogers. Thank you were here and applaud the moving of new Passenger Vehicles to the vision zero emissions and try this for other vehicles Visitacion Valley as well we would ask for one additional amendments that is reinforcing the comments if the department of the environment we suggest that be amended to more clearly require the right sizings the citys fleet in so many ways the city of San Francisco is in a leadership position on the Environmental Standards and new technology here two the city seeks to move employees to transit walking and biking where possible as we work to reduce the impacts of driving right sizings the fleet is the Ongoing Program that will change and reduce the fleet needs in the future the city has many programs were doing right now and should recognize this Initiative Analysis and changes in the infrastructure you mean the mta is involved in a lot of upgrades to the transit city the city has a major change to the bike infrastructure and working on pedestrian improvements and there are new avenues that can be explored like the vehicle pools between multiple departments so in light of these we do believe if we have increased investment in those Ongoing Programs and explored additional programs can be a greener investment in the city vehicle fleet we have specific language well suggest in the committee is open to it that concludes my presentation. Thank you, thank you very much. I guess to clarify i dont know if under hack to and the existing legislation i thought we have requirements of right sizings our fleet i fully agree with the intent not an amendment to this but look at perhaps all right. So may be open up for Public Comment and through that i really hope to better understand the cost for charging infrastructure i think the analysis can be improved here and i have one pshgd and nothing else that wants to speak sir, the floor is yours. Thank you hi, im spencer represent the charge point thank you for the opportunity to voice our support for this proposed legislation charge point is the Worlds Largest charging stations over theo thousand charger spots across the United States and canada we have experience including working with the city and county of San Francisco who is one of our first customers over 8 years ago and thank you for a Long Term Partnership all over the place for helping to advance the migration to electrification of this i dont have a lot of time but my concerns around the budget analysis we found the number of 160,000 per as an average per charger is high in our experience we hope to have a more 0 in depth conversation with the departments of city to lend our expertise to help refine and get to a more accurate number. Can do you suggest is an accurate number. Its complicated there are many factors in the effecting the installation price they fall into 3 buckets the first the construction planning and design we need to understand what the Electrical Capacity at any given site and how to best get the source of power to the station another bucket the hardware and total ownership of that station including the electrical costs and maintenance fees and the third is the financing of incentives the way to purchase those we have expertise across those to lower the costs substantially it is a situationsal base we hope to have a more in depth conversations and better estimate those costs thanks. Thank you under two minutes just one followup question i know the airport recently cherished to charge point for the infrastructure for passenger investigates as well as sorry for the passengers flying out of sfo and future for the employees in terms of 16,000 estimate for example, per my understanding that could mean one of those chargers that could charge up to 2 chargers two cars even the 16,000 costs that was cited in the report can be cut in half. Right. So to future explain we are working with the aircraft on a long term Parking Solution theyre our Current Customer has over one hundred chargers with of the report that mentioned it with the long term Parking Solution we leveraged the technology for less infrastructure to support more cars and the fabulous was lower i dont have the number off the top of my head but can provide that it is sitting less if that situation. Moving forward you know where it through charge points or other city approved vendors that is really important that we engage them to understand the complete cost analysis for charging infrastructure limits and ill say i know that the departments will have issues and challenges trying to abide by this legislation that is important to have this difficult conversation to shift the way that you know in terms of our transportation modes and our clean vehicles and so we are condominium to having our department of the environment to work with all departments to figure this out and changing technologies that improve and can make charging easier and faster using less infrastructure i want to make sure all the departments are aware of it well make sure that each of the departments feel that the ability to k078 apply with the legislation so ill say moving forward again ill share with the budget analyst review all the different aspects i feel we need to finetune the cost analysis for example, no analysis but the federal and tax credits available if we purchase the zero Emission Vehicle by the time this hits the board a more refined sense of cost for this legislation. Thank you, colleagues i dont know if have any other questions. You nailed it ill be looking for more information about the vendor and what the process and the costs associated with getting us to our goal commissioner tang my compliments to you for proposing such a good piece of legislation looks like weve got the the budget analyst has remarks. Come to the microphone please. Yes. Madam chair, and members of the committee. First of all, a clarification we do special projects for the board of supervisors and we manage and it takes considerable time this report a budget and finance committee we basically have a week to had about two more weeks to do this report and number one, and number 2, every single number in this report comes from respected departments the department of public works, the department of Administrative Services and the mta those are the 3 departments that manage the citys fleet and do the implementation of the technical aspects of this proposal thats why we spoke and went to those 3 departments if there are numbers that are wrong in the report it came from the 3 departments i dont on the numbers are wrong if you want us to do an additional work on this report it is going to take considerable time well be happy to do it but not for next tuesday that is superficial and basically impossible and a disservice to the board of supervisors to give you an amend report with some of the aspects that supervisor tang is requesting well be happy to do it but not for next thank you. Through the chair. Sorry supervisor tang i want to close Public Comment. So is there any Public Comment seeing none, Public Comment is closed. Supervisor tang thank you. I fully acknowledge the hard work you have a short turn around time first of all, it is not going to the board next tuesday the following tuesday that will be ill look at my calendar may second when wed like the additional analysis and happy to help to fascinate that information it is for the initial report should have contained that information in the first place. Thank you supervisor tang and supervisor yee has remarks additional to add. Im curious through the chair to supervisor tang of the considering that some of the vehicles hybrids were bought last year and potentially this year would that 10 percent youre talking about that is in i believe in your amendments will that account for those amendments their not the Life Expectancy by the turnover in 2022 with our amendments thats 5 years from now so this possibility those vehicles are in real good shape and can be still used im concurring when you think about the 10 percent was that factored in. The 10 percent for plug in hybrids we have 15 of so this is significantly lower than the 10 percent were allowing the reason why they extended the lead time for 2022 instead of 2020 to account for the vehicle Life Expectancy well be trerment some vehicles earlier than the 10 or 8 years of theyre expected life but extending it further than proposed i think that a great compromise. Okay. Given we supposedly offload one hundred vehicles yeah, well have that up to 50 vehicles every year. My mistake im looking at the hybrid the purchasing the 6 hundred and 38 figure. Yes. What is going to happen did you take into consideration the offloading relating new cars. Yes. I think that you know if you look at this chart for example, you cant tell which ones are exempted from the regulation first of all, knock off vehicles from the list and secondly, the same answer thats why im extending the lead time to comply to the city to 2022 and some cars will be terminated earlier but our goal to wean ourselves off of gasoline powered cars. I guess who what im looking at it i support weaning it all we can wean it off this year im looking at whether or not well be open to amendments for those newer vehicles that has been purchased you know either this year or last year give it at least a year were talking about those hybrids i dont have the analysis which ones are exempt so that is my question which if youre open to amending that piece which will be a small percentage i guess i assume. So i 3r0er7b8 wont consider that amendment today but followup with the city Administrators Office which are exempt that are hybrid and lets talk with the Board Meeting as we head into budget season look at each departments request in terms of how theyll comply with the legislation and a lot of discussion on both points in terms of what well see and they need and what we are able to provide. Right in passing the legislation you know it moved to the full board id like to consider at that point not when they not when they do the budget this way it is clearer in our legislation that we take these things in consideration. My previous answer holds im looking forward to look at the vehicles covered under our light duty passenger and exempted in the Public Safety emergency exemptions and consider it before the full board. All right. Thank you very much that robust discussion i think we are done with this item. Is there a motion or something youd like media to do with that. Ill make a motion to adopt all the amendments i stated on the record. Without objection it passes. Call items 5 and 6 together and would you like then ill multiple voices . To amend and. Send it to the full board with a positive recommendation. As amended. Without objection. 5 and 6 please. With the state department of health care services, in the amount of 128,849,925 for the term of april 15, 2017, through june sign said agreement and to approve amendments for less than 10 of the contracted amount. And drug administrator to sign said agreement and to approve amendments for less than 10 of the contracted amount. Sign said agreement and to approve amendments for less than 10 of the contracted amount. All right. Thank you welcome chair cohen and members of the board thank you for hearing those two items my name is judy martin the medical director for Substance Services for the city and county of San Francisco ive introduced two academies for the resolution have to do with dates the first one delays item 5 the 68 from april 15th to june 15th at the recommendation of our stat medical agency to allow time for the federal cms to review and fine item 5 at the onset of item 5 replaces item 6 item 6 is a multi year Substance Abuse services previous contract and, of course, every year has to be adjusted and amended the amendment for this year for 16, 17 is what you see there id like to really thank the analysis for a deep review of o items and at their suggestion obtained in writing from the department of health that specifics the end date of contract 267 that will be the red line copy will be available with Barbara Garcia signatures and director garcia tomorrow i wanted to also comment that the organized Delivery Service contracted that is number 6 5 on your agenda represents about 2 to 2 and a half years of very hard work by the Substance Abuse disorder my team in terms of some are here and also it represents a tremendous effort by the contracting partners that provide the services in the community to renovate, upgrade and change how theyre planning to deliver care this is to bring a beneficiaries more into line with medical care increases the professionalism a step parts parity a greater step than ive seen in any career aside from that introduction im here to answer any questions. Thank you, dr. Martin lets see supervisors i see your name in the cue. Take it off. Doctor martin well go to the budget Analyst Report hopefully answer questions. Yes. Madam chair, and members of the committee. On page 31 of the report dpw 2016 17 that includes additional reimbursement of 12 million in 16, 17 by the state under the proposed fifth amendment that is sharing shown in table one of page thirty in our report. Our recommendations on page 33 we recommend you amend the file to state that the agreement between dph and the state is effective as of june 2017 and 67 to state the existing contract between dph and the state terms in 2017 and the new agreement between dph and dhs becomes effective and recommend you approve the approved resolutions as amended. Thank you colleagues any other comments seeing none, all right. Well go to Public Comment at this time ladies and gentlemen, if you like to come and speak on items 5 or 6 all right. Seeing none, Public Comment is closed. Thank you, dr. Martin i i think were okay. Is there a motion . I make a motion to adopt the amendments as specified and to the item move forward welcomes to the board. Supervisors item 5 and 6. Items 5 and 6 and oh, item 5 and 6. Thank you all right. Without objection thank you all right. Mr. Clerk. Love for you to call item 7 item no. 7 resolution authorizing an application to the California Debt Limit Allocation Committee to permit the lowand firsttime homebuyers in San Francisco. All right. Thank you fostering with the mayor and amy changing on behalf of the Mayors Office of housing to speak on this item welcome. Amy from the Mayors Office of housing good morning chair cohen and commissioner tang and supervisor yee the item before you authorized the Mayors Office of housing to apply to the depth motion to Strike Committee occupy to 15 million just the low and moderate in case the first time homeowners the certifies allow the homeowners to claim 15 percent tax credits for 40 years and up to two hundred percent ami are eligible to apply and one more time. Households up to 175 to two hundred of ami are eligible to apply for the certificates and board of supervisors in 2010 to apply for 40 million and the last of those certifies were issued last year in october so, now were coming back to the allow to apply for another round of applications the deadline in may coming up soon and planning to submit the next request for 5. 5 million in mortgage considers it requires that we have board approval thats why were asking the committee to remedy the resolution today and my colleagues jena and others are here in case you have questions. Jan if the Mayors Office of housing; right . And sonya from where . Also from the Mayors Office of housing. All right. All right. Thank you very much. One question. Yes. Supervisor yee. So im curious for this type of program is that for people that they have to apply for this program when they first purchasing or how does that work. Correct and ill ask jenny to talk about the eligibility. Hi supervisor im jenny with the Mayors Office of housing and Community Development im the Program Manager this is for people first purchase their property to be eligible to get a tax credit. All right. Thank you so 33 they have to be a first time homeowner not owning a property for 14 years. So if someone purchased a year ago it was too late. Three years ago they own a property and come back 3 years later and dont own property for the last 3 years. Thank you all right. Thank you for your presentation go to Public Comment. No Public Comment Public Comment is closed. Thank you send it to the full board with a positive recommendation. As a Committee Report . All right. Well take that without objection. Item 8 item no. 8 appropriation sales proceeds of City Property for 122,000,000 and proceeds from certificates of participation for 321,765,000 to the General Service agency fy20162017. To fund the retirement the series certificates of participation and to fund the Development Costs of 1500 Mission Street Office Development in relayed San Francisco board of directors sf and places the total of 440 million open controllers reserve. I appreciate that and today weve got many naomi kelly city administrator to report. Today with me is claudia Deputy Director of the real estate and lopez from the department of public works first, i want to say im referring to the budget analyst to a approve the appropriations of one and 22 million in place on the reserve to continue the balance of the three hundred and 215 seven hundred plus from the occupations for 15 hundred mists when we return in may well have further discussion with the budget analyst with the costs and additionally come back and report on the existing stacking plan for 15 hundred mission that is in the finalized and talk about existing out of civic center lazy thought ill talk about 15 hundred mission the conceptual design versus today as a building as weve gotten more programming design over the last 3 years just a couple of things reduced the size of rentable space to 30,000 while at the same time increasing the density of employees going in there the head count if the 3 departments has increased by over 3 percent but in the rentalable area has increased by. 8 percent our permit center has increased since 2014 we wanted to add more departments into the onestop shop permit center as you may know and going to like the Small Business popularity if you opened up a restaurant in San Francisco it would take 20 permits to do so in various location and now we thought in addition to having dbi planning and public works we should add many more other departments into the permit center so it is trowel a onestop shop permit shop the actual fte dbi planning and public works has increased over the past 3 years our projected actives in 2014 with not meetings the active uses of today we are delivering more Service Needs to the san franciscans there is a chart i have that speaks to and shows basically the same information in the budget Analyst Report we anticipated in 2014 and where we are and not popping up sfgovtv. There we go. And we can pass it out to the board of supervisors you can see the increase or where we are in Square Footage and the difference from the different departments the department of public works as you can see the existing with what their existing today with the program on 15 hundred mission again not finalize and please forgive me we dont have a copy of that. Is this one . I dont have it. Thank you. We have it now and. So we are as you can see public works what was anticipated inform 2014 what is conceptually or potentially programmed for 15 hundred mission not finalize we have time to work on it an increase of gone from one and 82 to one 11 thousand Square Footage change planning has gone from 49 to 59 square feet it is a 10 thousand Square Footage change a 22 percent and dbi is 50 thousand or 51 thousand going up to 56 close to 57 an 11 increase and the permit center by 22 to 38 thousand a 76 percent increase i mentioned earlier we decided to increase the center to say a onestop shop there and areas where there is tenants to be determined and also see the weight increased the training and Childcare Centers in the common ear so there is Square Footage there again, we have time to work on this you can see the head counts in the table below what we projected in 2014 what is the active today and again, a lot of the head count more is more of policy called by the mayor and the board of supervisors and how many ftes we have going in there were doing the best we can with the fitting the number of employees and the program and getting out of a very important thing getting out of existing leases it is not something that ill be able to discuss further today and well have more to say in may but a lot of theres a lot of moving parts and valuables in getting out of various lease an example the department of public works is not on on thirty van ness and mission but major divisions at 1155 Mission Street with the management and their Accounting Division and moving out of those spaces into 15 hundred mission well backfill with it is a favorable lease term with other entities out of different areas before city hall or have on south van ness that allows the mta to get out of expensive leases and move to one thousand van ness it is kind of as we call it a project chest were moving multiple areas down stream you then eventually get out of leases it is a worthy conversation and goal we all share and more than willing to come back to you in may and further and continue the dialogue with the board of supervisors around that. Wow. Thank you. Supervisor yee. I think and supervisor tang excuse me thank you for this chart here i mean, i see the 76 percent in Square Footage for the permit center that is something ive been pushing all of the departments on because in terms of Customer Experience with the people getting permits it is challenging to go to different buildings and then they are different timelines and accuses and everything so i know that ohio ive been work with the office of Economic Workforce Development and the Planning Commission i think that is important to go to one place and get our Business Done in one shot i know you said youll come back in may with Additional Information about how it is were getting departments out of expensive leases can you elaborate what are your thoughts of and analysis of the shifting going around in the budget analyst comments last week this is a lot of talk about increasing the Square Footage on 15 hundred mission but reducing the Square Footage for the sub center leases. There was a lot of Different Things we need to look at ill not be able to accomplish in one week there is looking at the existing footprint here in this building that will it takes time and looking at the different leases in the civic center when they expire and the needs and Program Needs what are the different source of funding coming in were doing some analysis now to and have ideas that we would feel better coming back in may and having those conversations. I have a pretty technologies question mr. Rosenfeld if you give me a second can you mr. Rosenfeld can you remind me what was the difference between a controlled reserve and Budget Reserve i think that is simple question. No okay. Turn your mike on. Good morning Ben Rosenfield Controllers Office there are two different ways that the board can place reserves the Controllers Office reserve typically will not require the action to return to the board of supervisors if you want to place something on reserve your clear regarding the criteria to release the be reserve for example, funds on Controllers Office reserve until bones are sold this is a nice bright line to authors this spending but were other examples typically with the Controllers Office reserve is the board places fund on reserve the Controllers Office is authorized to release it using the criteria the board as articulated to us thats one approach and second that you pensions that Budget Finance Committee reserve the appropriation move forward forward but were not authorized to spend those until it returns to the board with a release those are two approaches for reserve. Thank you. I appreciate the clarification and supervisor yee. Thank you. Yes and madam chair. This is along the line of questioning of supervisor tang in regards to the projections of staffing and Square Footage and pretty much the same conversation we had since last week on the same item and it seems like there is hadnt been any further clarification because this will take more time to do a better analysis and even the moving juggling everything around like to see that in on paper it is kind of hard to follow when you talk about it there to there and Something Else will move there. The question i have then is in regards to the three hundred 21 thousand no 3 plus 65 precedes from to develop the new space i guess when is that necessary. I mean as it seems like youll not need that funding for awhile. Well need the funding at the time were in counteracting with the developer related we will need to ratify the 321 million at the same time the purchase of agreement now and when we come back in may that we dont need the entire amount i dont have the cash flows in front of me but need to ratified and this conversation in may if parts are put on reserve thats fine but have it fully rat fiduciary at the time of ratifying the purchase sale agreement. What it the ratification to purchase the Sales Agreement you in the middle of may we think working with the chair may 11 or the following week. I uncomfortable with projections and the hope that the Board Members hope in regards to reducing the lease space in the Civic Center Area and i dont know how much we can push it whether those numbers makes sense or their inflated in terms of the Square Footage that these 3 particular departments needs ill definitely support the permit center if theyre more comfortable in the Square Footage certainly support the childcare piece but what else is there i mean and see because the uncomfort level we are talking about two items that are related i dont know if my colleagues on the committee would be open to an amendment or id like to do is i dont want to hold up the one hundred and it 2 million it seems like that is necessary at this point the other piece is sill time sensitive but have time to give the departments a chance to finalize their numbers or tighten up their numbers so fully understand wherewith he can get to reduce some of the leases in the Civic Center Area so one way to maybe approach this is to duplicate the files, and then for the duplicated foil to amend out the 321 million seven hundred and 65 and go ahead and pass the other piece the other appropriation of one and 22 today and then if the chair can actually put this on the agenda for may 11 and the timing should be still okay give you more time to give us clarity on the space usage so can i just ask i dont have i know that jamie with behind me and ben it is the timing of may 11th we want to make sure that the Controllers Office has enough time to do the work on the certifies of appropriation and rather than to assure i have may 11 to some of the items have not been trod we suggest to the call of the chair to have scheduling on may 11th or 18 we want to make sure about that all the remaining legislation it in front of you were not sure that can happen by the 11. Im open to that. All right. Thank you. Supervisor tang any thoughts you want to share. I think ill submitted. Supervisor yee. Sounds like we have common thinking well go ahead and privet and go to Public Comment so see what the Public Comment has to say seeing none, Public Comment is closed. Thank you supervisor yee i want to make sure i heard you correctly the b l a made recommendations youre proposing to today that is to appropriate one and 22 million ; is that correct all the no, im actually proposing something slightly different. Okay. Which is. Hold that thought i want to that i have privet. Yes. Mr. Chairman, and members of the committee i have the city administrator i dont understand what remedies she didnt agree with. One comment when we return in may to reduce the k o ps my comment ill work with you. Great you basically agree with the recommendations yes. Madam chair, and members of the committee. There are two main concerns or issues in our report project you were told there would be a reduction in led space it turns out the department is recorded theyll windup with the city owned buildings we sold and windup with one and 54,000 Square Footage it seems reasonable a reduction in the spaces and some of the cost savings wed like to found out when it did not comes back, and, secondly, the furniture equipment, the computers and moving costs run up one and 39 percent from 12 millionmillion. Appreciate our willingness to respond to question. Supervisor yee. So i guess to continue the item can do we need to split the file did you want the foil. John gibner, deputy city attorney. So i think what supervisor yee is appropriately did you want the file that is a single supervisors privilege to that can happen without a vote and amend one version to one hundred and 22 million, the method. Send it to the full board with a positive recommendation. And then. Report. The second duplicated version to remove the 122 has the 321 and thats the right number and continue that item to the call of the chair. All right. Thank you for your clarification. Thank you for your clarification. So thats what you want to do. Yes. laughter all right. Supervisor tang how are you all right . . Okay to the clerk do we need to restate that can we accept. Id like to clarify if you want the first version the one and 22 million would you like to full board as a Committee Report. Yes. I would. Thank you. All right. Thank you okay. All right. So theres a theres a motion on the floor and for clarifying that and colleagues, can we take that without objection . All right. That item passes. Unanimously thank you. Thank you, ladies and gentlemen, and im not sure if i closes Public Comment but Public Comment is closed. All right. All right. There any additional business to come before this body . Theres no further business. All right. My friends this meeting is adjourned working for the city and county of San Francisco will immerse you in a vibrant and dynamic city thats on the forefront of economic growth, the arts, and social change. Our city has always been on the edge of progress and innovation. After all, were at the meeting of land and sea. Our city is famous for its iconic scenery, historic designs, and worldclass style. Its the birthplace of blue jeans, and where the rock holds court over the largest natural harbor on the west coast. Our 28,000 city and county employees play an Important Role in making San Francisco what it is today. We provide residents and visitors with a wide array of services, such as improving city streets and parks, keeping communities safe, and driving buses and cable cars. Our employees enjoy competitive salaries, as well as generous benefits programs. But most importantly, working for the city and county of San Francisco gives employees an opportunity to contribute their ideas, energy, and commitment to shape the citys future. Thank you for considering a career with the city and county of San Francisco. [gavel] good afternoon everyone. It is 1 05 pm for this in the regular meeting of the commission on Community Investment and infrastructure. The Successor Agency commission to the San Francisco Redevelopment Agency for tuesday, april 18. 2017. Welcome to members of the public. Mdm. Sec. Please call roll call first item item per sort of business is item 1. Roll Call Commission members please respond when i call your name pimentel cousin, rosales present, singh here, bustos here mondejar here. All members of the commission are present. The next order of business is item 2, announcements. The next regular scheduled meeting will be held on may 2, 2017 at 1 pm at city hall, room 446 think announcement a probation sound producing Electronic Devices during the meeting. Please, be advised the ringing of and use of cell phones pagers and similar sounding producing Electronic Devices are prohibited at this meeting. Please, be advised that the chairman may also order the removal of the meeting room of any person responsible for the ringing of or use of a cell phone pager or other similar sounding producing Electronic Devices. Announcement of time allotment for Public Comments. Please, be advised that the member of the public has up to three minutes to make permanent Public Comments on each agenda item unless the commissioner adopts a shorter period on any items you it is strongly recommended that members of the public who wish to address the commission fill out a speaker card and submit the completed card to the Commission Secretary. The next order of business is item 3, report on actions taken previously closed session meeting, if any. There is no reportable actions. Next order of business is item 4, matters of unfinished business. Theres no matters of unfinished business. The next order of business is item 5, matters of new business. Consisting of consent and regular agenda. First, Consent Agenda. Fivea approval of minutes march 21, 2017. Madman sherman chairman any speaker cards . Keynote speaker cards madam chairman. Hearing no one to speak on this item ill close Public Comments. I will now turn to my Commission Members for comments and questions. Do i have a motion on the Consent Agenda . So moved. The minutes. So moved my commissioner rosales and seconded by commissioner bustos. Please take roll call pimentel aye, rosales aye singh ayebustos aye, mondejar aye the boat is five twin ones so please call the next item item next order business agenda next order business agenda item 5b fiscal year 20172018 draft budget. Operations and debt service. Discussion. Madame interim director thank you good afternoon this is part two of two of the workshops related to the budget for fiscal year 1718. The last Commission Meeting we staff led by the chief Financial Officer and the respective project managers presented on the various programs and project areas of the agency. This meeting is focused solely on the operations and the debt Service Component with that,will be presenting on the item. Speak commissioners good afternoon. Commission is good afternoon. I am the interimtodays our section workshop oon the budget will be focusing on the agencys operations and Debt Service Budget. This workshop builds on the workshop that we had two weeks ago at our last meeting where we spoke in depth about the budgets for our project areas for the Shipyard Candlestick point, mission bay, trans bay, and also Affordable Housing program in our Asset Management and Development Services division. So i just said, on april 4, we discussed the budgets for our three major project areas as well as Affordable Housing and Asset Management and developing services. Today, we are discussing operations and debt service. When you look at the materials and the memo provided for you today, the number pertain only to the areas of the budget that are related to operations and to get service. When you see the final complete budget narrative at our next meeting on may 2, where you will take action on the budget, thats where you see the budget as a whole combining each of the project areas Affordable Housing, Asset Management bellman Services Operations and debt service. Thats also where i will spend time presenting information to you about yearoveryear changes so you can see where growth or any other changes have happened between the 1617 budget and 1718 budget. Following your hopeful approval of the budget at our next meeting in may, the following day we will submit our budget to the Mayors Office where it undergoes about a month of review. We work with the Mayors Office to confirm that our budget meets the mayors policy objective and we are within the financial constraints outlined in the citys fiveyear financial plan, which i will talk about a little bit more in a few minutes. Finally the Mayors Office reviewed the mayor submits on our behalf at the beginning of june to the board of supervisors our proposed budget where the budget undergoes budget and legislative analyst overview. Review. At that time the budget and legislative analyst comes through our budget in great detail in may, or may not, identify areas where they believe that greater efficiency can be achieved and identify areas in our budgetthat they recommend for cuts. If those cuts are accepted by the board of supervisors the board of supervisors, then, has the power to reallocate those dollars to programs that meet the boards policy priorities and then they have a second hearing on our budget in mid june and finally in july the board as a full Committee Takes action on the budget. If at that moment our budget is considered finally passed. So when i talked about our major Budget Officer review attack by the fiveyear financial plan. The citys fiveyear financial plan, the process actually starts the december before the fiscal year in question without means is, i started developing our 1718 budget in december 2016. So over a year ago basically we started talking about the five year plan and with the Mayors Office and comptroller aust oci i to do is to say, how much poverty text we are going to use for each of the next five fiscal years. The reason thats important to the city is because we have according to rita bauman law, we first request a property tax that we can expand to implement our enforceable obligations, and any of the property tax thats left is distributed to the other taxing entities. Primary among which, is the city and county of San Francisco. So without means from their perspective is that the more property taxes increment we use the less property tax increment is available for the mayor and the board to allocate to operate the citys budget. So there is this very direct relationship between our budget in the city and countys budget and so we have to maintain very close contact with the maters Budget Office and controller to make sure that the city understands what our property tax needs are going to be for the next five years. So what i do i present this information to the maters Budget Office, where i talk about what our administrative costs are going to be, what are direct project costs are going to be, direct project costs would be costs that directly related to project area. For example, in this years budget, reimbursements for the fulsome street scape blocks were direct project costs because we are not yet issued bonds. So we pay for them with property tax in this budget. Then eestimated that service. The reason that these three items are in red, is because of these are actually the only three items that can change from year to year. Because the next three items Retirement Benefits, those are calcified their locked in stone because we already owe our retirees pension benefits and their Health Benefits as obligated under our existing memorandums of understanding the labor unions. Our existing debt service is already calcified because we made promises to the debtholders when we issue the bonds that we would make principal and Interest Payments of a certain amount on a certain timeline. So those cannot be changed. Then we have the mission bay pledge and the tj pa pledge which also calcified because those are enumerated in our dba and they say that the permission day, the property tax is generated in motion bay we spent on either reimbursement infrastructure or finding Affordable Housing in mission bay and they can be used for any other purpose. So whatever amount the mission bay pledge is, that amount gets put aside in a separate with essentially an escrow account and held in escrow until theres a mission bay need on which we can spend those pledge dollars. We also have in the trans bay Implementation Agreement he promised to the tj pa that says any property tax thats generated by the state on parcels will be transferred directly to the tj pa to fund the trans bay terminal. So these four line items here, which totaled 2 100,000,000 dollars, or a piece of our budget that cannot be touched. They are the same and they cant change from year to year. The only things i can change our administration, direct project costs, and estimated that service. To some degree, as you will see later in the presentation, our ministry of costs are fairly well locked in as well because we have existing staff salaries and benefits that must be funded in order to maintain our existing organization. So not only do i provide in detail with the next fiscal years expenditures are going to be. I also tell the maters Budget Office where proposed property tax is for the next five years. If you look at this chart, you can see the next five years is 141 million. With that is saying is that we are going to live within our current envelope of property tax increment and we dont expect to draw any more property tax increment then we are now drawing. Those assumptions are what is helping the city keep its budget in balance for the next five years. If you been following any of the citys budget debate, we are actually showing very large budget year and budget year 1 deficits due to existing staff salaries and benefits. As well as our pension and health obligations. For the city is struggling this year to close a budget gap. So they really depend on these numbers and unpredictability of these numbers, to balance their budget. So as a reminder, the next phase in this process, after ive gone to the maters Budget Office and the comptrollers office, provided them with these numbers, which are then integrated into the citys fiveyear financial plan, which is then released to the public, and published and posted on the comptrollers website, in december, we do not start process. This is where oci i tells that apartment a finance what its overall spending is going to be in order to implement the approved enforceable obligations. We told the department of finance in four categories would each of our expenditures are going to be, and with the Revenue Source for each fiscal expenditure is going to be you may not be as familiar with some of the department of finance termsso i will quickly review them. One, Revenue Sources bond proceeds. Thats proceeds from bonds that we have issued to either fund reimbursements of infrastructure that a been already made by developers or to fund Affordable Housing. We have other sources which is kind of a catchall phrase that covers anything thats not property tax and not bond proceeds. For us, it covers things Like Developers payments so when Developers Pay for costs reimburse us for costs that we expend on their behalf, to implant the enforceable obligation, rent from oci i fiscal assets. That could include, lease revenue from your bubbling of gardens that then becomes cdbg income for grants that we receive from outside entities that are then expended in furtherance of our enforceable obligations. Then we have two kinds of property tax and truly important to understand the distinction. The first kind of property tax is property tax thats from the redeveloping trust fund. We refer to it in shorthand as [inaudible] and we can request and expend rp bts only on enforceable obligations. So without means if we have a specific enforceable obligation, for which we have no other funding for, then we can request to spend propeerty tax. Those are very specific line item request their detailed in approximate 400 line long and department of finance approves each of those lines one by one. We may spend 1. 69 to reimburse block six for state improvement. Thats how specific it is. Then we have another kind of property tax which we refer to as ach. Their ministry of cost allowance. That is what the [inaudible] by redevelopment law, all redeveloping agencies can spend and must only spend,we may not spendon a ministry of cost . Our administrative costs . Our administrative costs are are rented salaries to staff that are out working directly on an obligation. The professional services and Legal Services and current expenses and materials and supplies, the go to support the basic operation of the agency. So aca is actually defined by redevelopment law. According to a mathematical form. This law was recodified in sb107 passed in september 2015 and as you can see, without formula is is the prior fiscal years property tax distributional for the amount of property taxes that we received last year, minus, what we spent on our ministration times 3 . In the case of this year, that means that our aca 3. 59 million rounded up to 3. 6. That means we by law may only spend 3. 69 on our administration and you can see that gets a little bit tricky when we go to bridge the presentation. Last year, as you can see our operatingaca was 2. 9 million and this year its 3. 6 million. So thats growth of about 600,000. So 600,000, when you see the numbers, good, lots of fun to be had but wait until you get further in the presentation. You will see some of the limitations we face with his 600,000. Now, weve done the [inaudible] approved our expenditure and now the comptroller and the maters Budget Office as the city is beginning its budget process comes comes back to us and says, hey, lets check in on a five year number. You said you to spend 141 men dollars is that still the number and it really needs to be that number. So in this year, our property tax trial actually went down from 141 to 134 million and the reason for that is you can see the ministration number is exactly the same. 3. 6 million. The direct project costs, exactly the same. The only thing that has changed is our existing debt service. Thats because in december i was showing our existing debt service, plus the projected debt service, for the 2017 issuances of 2017a avoidable housing bonds, 2017be translate into shorter bonds in 2017see Mission Bay Housing bonds. At that time we thought the cost of the Debt Service Cost for those bonds were going to be about 10 million a year. They turned out through the hard work of our Financing Team a since smart structuring choice to be only 6 million. That means our property tax draw is about 4 million less than what we had originally told the city in the fall, but you will notice that even though our debt service went down, or other areas in red do not grow. They remained exactly the way they were when we reported to the maters Budget Office and the controller in the fall. So theres not a lot of fungibility between those lines it works i could to live within the envelope of what we tell the maters Budget Office and control of where expected not to go beyond and if there is reduction in an area that goes to support the other taxing entities. So now that weve checked in with the maters Budget Office and control we begin our own oci i internal budgeting process. Our operating costs today for 1718, r8 . 4 million in existing salaries and benefits. Without means is if we hire no new additional staff, the fund only those staff that are today in our budget, we already are spending 8. 4 million. In addition, theres four pointforming dollars in nonwaiver cost. 3. 2 million in retiree pension and health cost. Which is a total of 18. 2 million. Our overall operating budget to pay for what we are doing today is 15. 2 million, but are a ministry of cost allowance its 3. 59. So you can see the cost to operate the agency far exceeds what is allowed by law. So how do we make the magic happen . How do we pay for everything . What we do is go through in a very detailed way to look at each and every single one of our costs and we say, is this cost been expended in furtherance of an enforceable obligation, or is it being spent to administer the agency. The staff person by staff person, we make an allocation and we say, this amount of this persons time is dedicated to this project area. This amount of this persons time is dedicated to the project area until everyones salaries and benefits are fully allocated across all cost areas and we do the same with all of our nonwaiver cost. At the end of the day, no more than 3. 6 million can be not allocated to a project. Everything has to be allocated out except for 3. 6 million. So if you look at his pie chart you can see by the magic of budgeting, thats exactly what happened in fiscal year 1718. We were left with 3. 59 in cost been funded by our aca. Thats our administrative costs. Then the vast majority of our budget is actually picked up by eitherbecause that is a specific enforceable obligation costs or other, which is primarily developer payments. Some lease revenue, some grant funds and then also bonds. All that 50 million in costs gets allocated out until only the legal amount for administration remains. So from a use perspective, 85 of our budget is already of our operating budget, is already set in stone. Why is that . We already have staff salaries and benefits in Retiree Health and pension costs of 9. 6 million. If we made no other changes there would be 9. 6 million in staff salaries and benefits that would have to be paid on an annual basis. So you can see those are two costs that primarily drive our budget and make up about 85 of our operating budget. Going a little bit more into detail on our operating budget, as i said, a . 4 million of existing staff salaries and benefits. That is 47 fulltime equivalents staff which is a fancy way of saying staff members. Thats the same number as we had in fiscal year 1617 and that is in response will maters directive to all City Departments of which we are not one, but we do really take into consideration the maters budget policy directives. The mayor directed this year City Department should add no new staff that is in direct response to the fact that we are facing pretty large budget year and budget year, plus one, deficits. We have seven limited term assignment positions, which is a fancy way of saying, these are positions that are not budgeted in perpetuity, but have been put into the budget for a limited time based on our estimates of work surges. In our development program, we have times where certain staff expertise is unneeded and different times in development kind of goes in a wave so we use lta to help us ride that wave and add staff when we have really high workload following the cycle and development and then we step away from those lta services as the Cycle Development slows down and we need the specialized staff a little bit less. We also this year have a proposed 3 cola and weve not yet approved our mo you with labor partners. But, the current thinking is that the city has already approved its mo use. That mo you included 3 in fiscal year 1719 an additional 3 cola in 1819 depending on the city needing a number of budget targets. If the study city meets its budget targets in terms of Revenue Growth relative to expenditure, then staff will receive a second 3 increase in 1819. Historically, oci i has always tracked its Labor Agreement against the citys Labor Agreement kind of following in lockstep with the city. So we are currently negotiating with our labor partners about extending our mo you to basically take the mo you, extended an additional twoyear term, with the primary changes being 3 this year and 3 in next year to mirror whats happening with the city. Then, last, we have a 3. 2 million expenditure for Retiree Health and pension obligations. We have two types of retiree obligations. First, the pension to those of the payments you receive in retirement. After you have worked your qualified service and then we have our health obligation to the health obligation is further divided into the Monthly Payments that we make on behalf of retirees for their healthcare in retirement, and then we make a payment towards our longterm health obligations. So we have about 200 retirees who arewe are contractually obligated to provide Retirement Benefits to, and so we do an actuarial analysis to determine how much money thats going to cost us over eight to determine how much money thats going to cost us over 8 3 year time horizon and how much we need to put away each year in order to meet that obligation in perpetuity. In the past, we made a 300 payment towards our longterm obligation. This year, for the first time, we are paying our full actuarial liability which is 800,000. So in a world where we only pay 300,000 against this liability that means the amount that we are going to owe in the future to pay for Retirees Health obligations is growing amount of cash we hand is not growing at pace. So this is the first time that we made at Financial Investment to make sure that we are investing at the same pace that we are creating a liability and this is, i think really shows the organizations commitment to its retirees and also its commitment to just longterm health of the organization. Pension and Retiree Health obligations are a really challenging area of financing in the Public Sector and the fact that we are thinking ahead i think shows a lot of thoughtfulness on the part of the organization. So other budgetary highlights of operating budget. We have in the 1718 budget about 1. 2 million in professional services which is our use of outside consultants to augment the staff that work and oci eye. The majority of that is allocated toward implementation of the cmp and operating why bg transferred to the city and then costs to transfer that to the city and we also have a large number of dollars devoted to temporary salary and general professional services to support staff as we were to implement enforceable obligations. In terms of current expenses, insurance and Technology Infrastructure our largest current expenses. We spend about 400,000 for the year on property insurance Liability Insurance and Workers Compensation insurance. Then we also have a pretty big annual investment in technology to keep our email, our servers, staff computers, copiers, kind of all those basic things you use in your daily work life that you dont think about very much until theyre not there and then youre really sad. We try to invest in those things to support staff in their daily work. Now we will move on to Debt Service Budget our Debt Service Budget is 113 million. That goes to pay principal and Interest Payments on our outstanding debts. As you can see coming this pie chart, the vast majority of that debt is tax allocation bonds. Without means is, those are bonds that we issue against our forward property tax income stream to borrow money today to pay back in the future. To find Affordable Housing and infrastructure thats already been built by our development partners. We do have another of other small types of debt. We use Hotel Tax Revenue thats generated by this hotel tax to pay hotel laws. We have a loan with calboating taking out to help build South Beach Harbor that we are still pain and we will paint off until 2034. Also, we have a loan that was taken out from the cities low and moderate Income Housing fund that whipping back at a rate 2 million a year. So the budget is a constantly evolving process that starts a long long time before the budget actually comes to before you and just as a kind of i guess a metaphor, or real life example of this, we actually got news from the tos yesterday thatthey are concerned about some of our proposed spending to be funded by property tax increment to implement the Property Management plan. So that means that we now have totthey disallowed about 600,000 of our 1. 19 request. So we will need to identify ways that we can think creatively about how to solve that problem and i will be back to share that with you in may. So we will be back in may for your final review and approval of the budget, which will then get sent to the mayors Budget Office, who reviews it to make sure that its in line with the mayors policy goals and that we are within the promises made in the fiveyear financial plan. The mayor then presents it on our behalf to the board of supervisors where it undergoes budget and legislative analyst review with potential cuts in that area. Then the budget and finance Committee Makes a vote to recommend our budget to the full board and then the full board votes in july and it becomes the real deal starting in august. If you have any questions ill be happy to answer them. Before we take questions are there any speaker cards mdm. Sec. . No speaker cards mdm. Chairman. Okay. No request to speak on this item ill close Public Comment and will turn to my fellow Commission Members for their comments and questions. Commissioner pimentel i two questions on page 11. How much is it per staff person for the reduction in longterm Health Benefits, as well as reduction in longterm benefits . We are actually notwe are not reducing the and if its. We are reducing the future liability. So what that means is, when we hire a new staff member in a qualify for their pension benefits, they become vested. Insulin, actuarial table changes and says, according to national statistics, people live by approximately this many years and based at their current rate of pay, we expect that the agency will pay out x number of dollars depending on over that persons lifetime. Little morbid topic. So, our land longterm liability goes up by that amount. Every time we hire a new staff person both our Retiree Health obligation goes up because we will be paying health costs for those individuals in retirement, as well as kind of that sort of the annual cost and the sum of each of those annual costs going on ad infinitum over the amortization period so our goal is to shrink that longterm liability down until it is zero. When it is zero, thats when you would hear a pension is fully funded. Without means is, the amount of money that we have invested today, we can fund all of our obligations for the foreseeable future. We are not there yet. Thats where we want to be. So the benefits are being made at the current level. Its the future unfunded costs that we are bringing down. Was that your question . Okay. Commissioner singh page 11 again. [inaudible] what does that mean . So a limited term assignment, in our budget, we have 47 fulltime staff. Those are stuff that will stay in the budget until they are either passed to Something Else, or their eliminated through some reason. We also have ltas, limited term assignments, which are positions thatwhen people are hired, their offer letter says, your offer this position through this date further. At that time, the agency would reevaluate its work plan and determine whether we have the funding to continue to keep staff on, and whetherthere is an ongoing need. So most of our limited term positions are in specialized fields like compliance or plan review and that is because, right now, we are in a really traumatic cycle where a lot of work is going on but we have developers are submitting a lot of plans that need to be reviewed. A lot of construction is happening in the community and we need to be monitoring that construction to make sure that its meetingthat they are compliant with her lbd and spe goals. So the more building thats going on in the community the more planning and Compliance Services we need. If there were to be a downturn in the Development Cycle and developer started submitting fewer plans and building less, then the need for the Specialized Services would drop and so thats why those services are those of the lta position. [inaudible] that is primarily goes to the city bid department of technology to fund sf cup tv february which is the service that records all these meetings , digitizes and archives them. Webcast them over the cities webtv portal and it is also for production expenses emma for the packets to go out every week and the Courier Service thatthat delivers those packets. So its on thewe spend that much money . Yes. Not you. We spend those dollars to support your very important work. [laughing] [inaudible] correct. On page 15, what is a [inaudible] loans the calvoting loans are debt that we took out in order to build South Beach Harbor. We bring it up to the beautiful standard that you see today. That was alone made to us by the state. Thank you. Commissioner rosales thank you chairman mondejar. On same slide, 15, i heard that once upon a time i am assuming the predecessor commission Redevelopment Agency received a loan for this low income moderate housing funds. For what project was that . You have to go back into the way back time machine and remember a thing called the [inaudible] which was the education wrath. I dont remember with the three letters stand for. Educational Revenue Augmentation yes. That was an obligation that redevelopment agencies had to pay in order to support school funding. There wasso, at one point, we took out a loan in order tofrom that fund, and then put together a loan schedule over time that it would be paid back, and so we have been paying forim sort of picturing the spreadsheet in my head. Weve been making payments of 2 million per lease i would say the last 510 years. So a few more details. When the state legislature requested that redevelopment agencies provided additional monies to the School Districts through thethey were allowed me to roman agencies to tap the low and moderate Income Housing fund, which, in general, for most redevelopment agencies constituted 20 of its total tax increment generated that money was alwaysnot alwaysbut at least in recent history, have been set aside and protected for the exclusive purpose of Affordable Housing so that redevelopment agencies can use it for other purposes. So there was a lot of restrictions placed upon how that fund was managed and segregated, and when the state required additional monies to be contributed to the School Districts, for educational purposes, your loud agencies to access those funds instead of pay for Affordable Housing. So we took advantage of that by issuing debts that otherwise would have been funds that went into the low and moderate Income Housing fund. We took those funds and made the payments to the School Districts and then under state law the agencies had a period of time to pay that money. We did that. Then with dissolution, the funds that had been borrowed are to be, and have been, repaid to the housing successor. Even though we have significant housing obligations still, the general idea for most redevelopment agencies it should be wound down by now and not be doing [inaudible] is certainly not Affordable Housing. So the idea was that the housing successor to the Redevelopment Agency, which obtained all the housing assets in the outstanding loans and all that, would get this, this loan, if you will, to receive the payments from the successor agencies and then use it for Affordable Housing of the housing successor built. So the so the 2 million a years repayment for those prior loans thats now going to the city . Its going to ocd tobacco into their housing fund, Small Sites Program . It goes into a Fund Designated under state law as the Affordable Housing asset fund. Thats created by the dissolution law in its where all of the funds that the former Redevelopment Agency had that had to be transferred to the housing successor went into. There are reporting requirements. There are restrictions on the use that are very similar to what redevelopment agencies restrictions were. So in terms of permanent housing and affordability certain levels of income in as i said, a lot of the Redevelopment Agency. But there is not a specific programmatic requirement. It is programmed by the city to be consistent with the general Affordable Housing requirements. Speak good thats good to know. If i heard you correctly, weve been paying 2 million approximately for the last five years. Payback 10 million . We have about 16 million to go 60 . 16 okay. Got it. Okay. On page 5 of the memo, exhibit 4, with a budget positions and salary ranges are listed, i noticed consistent with what you said that there really is no net increase in budgeted propose positions for 1718, but i do notice decreases in some areas. Im interested, for instance. A looksee or the senior financial analyst, we are losing one senior financial analyst position. We are losing a project manager position. A senior legal secretary position. In management assistant. So these are what we refer to as tx where if the position is vacant, the oci eye has an opportunity to look at that position and say, is this the best use of that position . Is there a classification thats more appropriate for the work that we intend for this position to do . Is there some need that is not being currently met . Is the need that this position is staff to still there . For example in the case of the senior financial analyst, you may recall it was a new position in the 1617 budget, and when it came time to hire that position and we started talking about what was really needed from that position, the agency identified that what we are really looking from that finance person is to be a bridge between the projects and the more nittygritty become someone who can speak accounting to project managers, and project to finance people. When you look at those job descriptions that doesnt really fit within the rubric of the financial analyst. Because the financials analyst position doesnt do a lot of the nittygritty accounting. We change that budget to deposition to a staff associate position so where you see the, plus one, next to Staff Association and the 1, extra the financial analyst, without means is a financial analyst got turned into the staff associate. Because that was a more appropriate classification something similar happened with the management assistant position which then became an executive director to the im sorry executive assistant to the executive director in a legal secretary position which became a Commission Secretary position. So in both of those cases, we lookedwhen it came time to do release the actual job description, we took it as an opportunity to really think more deeply and when we started the budget last december, time moves on. Things evolve. We realize we have some slightly different needs and so thats where tx happen. In the case of the project manager, we have two wonderful assistant project managers who are taking names at shipyard an we arwe have a new kne we talked a lot about the reenvisioning position in the entitlement process. We are realizing we need less of that project manager kind of global vision, and really somebody in the weeds rolling up their sleeves and actually processing plan changes and reviewing plans and working on entitlement and doing Detailed Planning and entitlement work it so that is really changing at Shipyard Project Manager position to a shipyard derailment specialist position. So it is kind of an in and out, which leaves us at net, no change. Speak grea thank you thank you commissioner rosales. No comment . I have a couple of questions. So what is the percentage of the pretext to beget . I know you have the amount but approximately . I would sayit changes from year to year. I would say at a high level its about 6070 . Last year we took 122 and left 70 million on the table for the city somewhere between 70 and 80. Okay. One other question. What is the total value of the funds weve issued so far for last year, actually just last year . We started the year with 96 million in outstanding and we issued withwe just close the bonds in april. So we are still kind of if you recall 2017see alsoincluded refunding bonds. So we have not yet completed all the accounting transactions that would show the exact amount but we are now at about 1101 12 million i believe. Lets see. That was issued from last year but we are still servicing them funds, right . Correct. So in total, im sorry were paying about 112 million in debt service. The actual as any amount, i think before you speak, lemmie look up the exact number and back to you. Okay. I think its 500 millionis myyes. About 500 million . Its about 500 million but i want to get the exact number for you. Can you expand again on the hotel tax on page 14 . Sure. So those bonds were issued in the 80s or 90s, i believe. With Hotel Tax Revenue and i believe they fund must coney tennis connie rusconi north and south. So on behalf of the city we entered into an agreement with the city we would issue on their behalf and they would transfer us hotel tax to pay for the debt service on those bonds in the city uses those breeds to fund the mus coney convention center. But not the current construction . No. You indicated theres about 6000 [inaudible] tos. What particularly were those that were not allowed . Those were staff and professional nonlabor costs. Generally professional services. Related to the implementation of the Property Management plan. The Property Management plan is the plan that says what oci ihow the oci i will dispose the disposition of all its physical assets. So because we are in wind down, we are not to hold any physical assets and those are all to be transfereither transferred to another Government Entity for a government purpose or sold on the open market with the proceeds being transferred to the taxfor the benefit of the taxing entities. So we have a various extensive plan thats is what we will do with each of those properties. The timeline under which that disposition will take place and we estimated it would cost about 1. 19 to implement next year. The vast majority of that 500,000 of that was for professional services for title and escrow work, appraisals, kind of all the things you have to do prior to transitioning an asset from one entity to another. Those were the costs that tos had concerns with. The plan is to transfer all these properties by this year . We had originally planned to transfer a large number of properties in 1617 because of the complexity of real estate transactions and especially large transactions, like your but bueno gardens and the complexity of transitioning those to another Government Entity that has a process on its side thinks of taking longer than we thought and some of the transactions we are actually projecting to close and 1718 rather than 1617. So some of the costs associated with those closings also we are rolling forward from 1670, 27018 okay. To follow up with commissioner rosaless question, i just need to clarify. Are you saying that the executive director did not have an assistant last year . So Commission Secretary was also zero . So did we operate . Its a little bit of hr weeds. We have things called classifications, which are the technical means of each of our positions. So a classification describes a range of duties and a set of knowledge and skills and requirements that person has. The idea is that if, for example, one of our classifications is a management three. Is a general analytical position for someone who does analytical tasks and moves things forward on a daily basis. But we have management three a perform a lot of different capacities. We have a management three that works for the shipyard. We have a management three that works in finance. So those people do Different Things in their daily work, but they have the same classification youre in this particular case, we had a management three was serving as both the executive assistant and the Commission Secretary and as we looked at how we change as an organization over the last year, and looked a little bit back at thehow the former agency operated, sf rda already had two positions. One is the executive assistant to the executive director, and one as the Commission Secretary. We had moved following dissolution, we, the idea everything was getting really contracted, we consolidated those positions into a single management assistant three position. Now that we have posted post dissolution, weve another enforceable obligations approved and we have staffed up to be able to implement those enforceable obligations. As a result were Larger Organization for project staff and we are finding just takes more administrative capacity to support additional project staff. So we went back to the model of having two people. One for theto support the commission in this function, and then want to support not only the executive director but the rest of the executive team and so when we looked at kind of the breath and scope of those two were plans, we decided that needed two different positions. So we separated that management three position. It became the executive assistant to the executive director and we a legal secretary position in last years budget that washad not been filled in as we thought about that position, we realized that the skill set that her legal secretary has in terms of reading legal documents and resolutions and contracts and all the things that come before the commission, we could actually use those skill set in a Commission Capacity as well. So the legal secretary became the commissioner secretary. Okay. Thank you. Yes . Is the Commission Secretary position just for this commission were also for the oversight . The Commission Secretary supports the Financing Authority the commission and the oversight board. So you think the executive assistant position, one position, is sufficient to serve all the executive team . Well, we are counted executive team. [laughing] in a modern age we support our own administrative tasks. We get out there, roll up our sleeves, and file and copy an email and schedule meetings. Kind of, support our selves in furtherance of having more aca dollars available to support other areas of the administration of the organization. Okay. I said this before and i will say it again. I just come from my experience from the airport, where the airport director has not one, but to executive assistance. The Commission Secretary is the Commission Secretary but she has an executive assistant. I was the general counsel and i had one primary, exclusive, executive assistant and then i was able to rely on the other four executive assistance for my other five attorneys if i needed them. So i had access to five staff people as a general counsel so because when youre 247 operation like an airport is, you needwith all the tech tools, etc. , available you need are managers available to basically manage not to administrative test. So i would suggest we might want to look at whether we have enough room in the budget for assistance to the executive assistant. So i think the primary difference between the airport and oci i is that airport is an Enterprise Department and it generates its own revenue and quite a lot of it. So they are actually one of the departments , i would argue, perhaps the department may be aside from the puc that is the most flexibility with regard to their staffing because if they can generate it they can spend it. We are in a different environment where administrative position like the one you mentioned would be truly administrative cost by the definition of the name of the position Administrative Assistant and we have to fund that with our aca and our aca dollars are limited. They are limited to 3. 5 million and certainly, administrative support would make all of our lives a lot easier, but when we look at that 3. 5 million limitation we have to ask ourselves, if that then whatnot else . The executive team Work Together andi just identified other expenditures of that we thought would support us more. For example, use of outside counsel to provide specialized Legal Services. Those are areas where we used Specialized Services that we cannot, ourselves, provide to support our work. So we allocated the dollars to things that we felt we could not provide ourselves. Okay. Followup . Im sorry . Where are the mo you with the city to varmints in here . Is that in a different part of the budget . That, you will find very near to the chart that shows the budgeted positions. Theres a bullet point in the highlight of our staffing that talks about the 3 cola increase for oci i stopped. The second part of that paragraph addresses the oci i staff that are City Employees february and contracted back to oci eye. Though staff will also be receiving 3 cola consistent with the cities mo okay. I think what im referring to is City Department [inaudible] or city administrator controller. Yes. Those arehold on. On slide 12, City Department services, we spent about 100,000 for City Department services but remember, these are services that are unrelated to projects. So for example we have very large mo use with planning, with the mta , with dph, to support the shipyard as well as trans bay and mission bay. The majority of our staff at city mo you sharpen the project budget. Okay. I think they are about 1. 2 million. I think executive director has a comment . I was thinking of responding to commissioner rosales that we will get back to you on a question about administrative support. We will take that into consideration. Thank you. Be sure to commend the executive team to be working with no assistance the last year and now with two assistants. Our own Commission Secretary being loaned to the executive team. So i thank you. Just one last question. Public communication supported does that mean our website is now going to be updated and easieris that what that represents . Yes. The public q medication support represents dollars that we can spend with outside specialists were able to provide web design. In addition we have inhouse staff who are mean mean social media machines. Yes. Okay. 100,000. I hope that we really at least upgrade our image yes commissioner pimentel iva question about social media. With the social media be used as a way witha lot of times when they come to the mission its about [inaudible] and reach. Without be used as a Digital Marketing aspect to get a further reach about what oci does, the projects and opportunities for people in the community that cant come because of the time frames or just might not know what we do and what we offer . So we have website which where we post all our job opportunities. The city has a website where we post all of our contracting opportunities through oca. Our rfps go there. So thats a place where the public can go and look, and all of our Commission Meetings are after they are broadcasted they are archived on the web for people not able to come at that time can log on anytime and watch. I think that over the next year we will be looking to the consultants we hire to help us envision what our digital footprint should look like and that will be a process that the whole organization participates in because the project managers will want to share information about projects and the executive team will want to shape overall look and feel of the website. Its really going to be a full agency list left to envision how we can reach out to the Community Tea and communicate more i like to see that information also been shared on social media. Like [inaudible] and my clients, everything is in that space. Everything is a tweet. Its all about the kpi, how many likes, how many shares and thats how people are getting that information they wanted fast when theyre getting on bart and walking. If theyre on theirfeed and they can click and go to the website but all that information people are getting. We actually live in a digital world. Yes. There certainly a lot of good things that we are doing that the public does not know about. So that would be great that we have 100,000 that will go to this effort this year. Okay. Think that any other comments or questions . Once upon a time we contributed 140,000 to dolly. Are we contributing anything more . Lets see what it was fiscal year1415 i think itknow, 1516 that we contribute it to dahlia. Ocd has moved along a pace with their implementation. They have not indicated to us any additional funding needs so that isnt something in the 1718 budget, but i would be happy to check in with them about how the implementation is going. I believe about a year ago staff came and gave a presentation to you for kind of an update on where the dahlia implementation was and what the next phase they had planned. We can reach out to ocd and refresh that for you. Okay. Thank you. Thank you, bree. That was wonderful. It was good. Can you call the next item mdm. Sec. Next order of business items six Public Comment on nonagenda items. Any speaker cards . One speaker card. Oscar james. Okay. Mr. James. Good afternoon Commission Oscar james. Bayview Hunters Point resident. I really appreciate that lastthe last item on the agenda. It was thorough. I am glad to hear that the community would be informed about Upcoming Events and agenda items. Because a lot of people in the committee have been asking me about, even though the majority of them dont come to the Commission Meetings, which are being getting them on about that, but they still would like to hear whats happening with the commission and when the commissions are having their meetings. One thing ive got to do is to thank the staff for contacting me and letting me know about the housing authoritys project i appreciate that. I also appreciate the director, the acting director coming out to the community excuse me for the cac meeting. I think that was wonderful and thank you very much and hope to see you out there more often. I know ace is not here excuse me. I know ace is not here but i would like for her staff to go and see whats happening in the western addition. So you guys can get that thing finished and done with because i know they have a concern just like we would probably have bayview Hunters Point which you guys lead bayview Hunters Point i think its important to have a Community Meeting to you guys can kind of wrap that up with the concerns in the western addition. X [inaudible] thank you very much. Thank you. Thank you mr. James. Any other Public Comment . I will close Public Comments and please call the next item item seven, report of the chair. Mdm. Chairman. I have no report. Thank you. Item report of the executive director informational memorandum on transmitting the Candlestick Point and Hunters Point shipyard Master Development report on compliance with the Community Benefits program for october to december 2016 and oci i staff analysis. Hunters Point Shipyard and bayview Hunters Point redevelopment project areas. Discussion. Mdm. Interim director good afternoon commission. This is informational memo i think [inaudible] subsequent report youve seen before. The developer is successfully compliant and is a slight improvement from the prior period that was received. Staff has provided memo as well as the developer provided materials as well as a letter to the developer trying to clarify certain areas and improvement with action plan in preparation for the next reporting cycle. [inaudible] mckinney is the Development Specialist thats work on his compliance matter. If there specific questions she can respond to them but most of the materials are in the binder. The next item i also want to just talk about briefly, is i want to clarify and make sure the commissioners received the invitation for the naming ceremony for the [inaudible] some of the commissioners have responded, but not all. If folks are interested in participating and we can get your names that we can make sure we make the appropriate reservation. It is on sunday from one3 pm in city hall in the rotunda. There is also a part two of the Candlestick Point Retail Center meeting that occurred back in december 2016. It will be held in the community as well next thursday just wanted to give you an fyi. Same place . I dont know if its the same place, but will be at the elementary schoolokay . [inaudible off mic] commissioner 10 pencil can someone semithe information. I would like to attend. We will do that. I have no more reports, nothing more to report on. I dont know if just appropriate to take Public Comment on the notice item on the executive directors report. Yes. Mdm. Sec. To have speaker cards . I have one speaker card. Oscar james. Mr. James. This is comment on the executive directors report. Yes. I read through most of this agenda forwell i write through most of the it but my concern isand you know, at one time i served as a commissioner, too. With model cities. We always made sure that the directors or people involved in Different Things, that we were putting money towards came to this type of meeting. Its good to see the directors are people who are getting contracts from the agency but just coming out and hearing the community what use are saying to them directly when theyre asking for funds. So what i am asking for is for this commission to direct the directors, people who are getting funds, to participate in these meetings. To help fill this room up. When you see people from the various agencies, maybe there staff or some other people from the community will come out and participate, too. Because it is sad the only time people come out to a Commission Meeting, or to participate in something, is on a hot item. Then they talk about what has not been done in all this and all that. We need people to come out and see what you guys are doing the terrific work you do on a weekly basis and not getting paid for it. So we need to fill this room up so they can take back to the community and say what is happening. Its one thing to do hard work but its another thing not to get the satisfaction from the communities and the people to recognize what you guys are doingand how this benefits our community. Because of this program was not here, bayview Hunters Point would be in bad bad shape. I know that for a fact. So i dont know what you guys can do, but you need to either send a memo to these different directors people people are getting money. Thats why i come to the minute at least send somebody from their staff so they can bring back information to the rest of the staff. Its one thing to collect the money and its another thing not to give a visual report sitting here in this Commission Meeting. Thank you very much but i hope i made that sensible. Because i get tired of coming out here to see 23 people in the audience. When something hot comes up, you have a whole room full of people coming and tony was what youre not doing. Thats a shame. Im talking to those who are out there who do that. You know. Thank you very much. Thank you mr. James. Noted your suggestion. Are there any more speaker cards speed up no further request to speak we will close Public Comment and fellow commission commissioners, any comments or questions . Yes commissioner singh yes. I just want to know when we are going to make a permanent [inaudible] interim . [laughing] noted. We are working on it. [laughing] instead of calling interim actor of executive director, yes. Any other comments or questions . Okay. You do. Im sorry. On the slidethis is more of a general question but on the slide here, page 10 where box talks about quarter 1020 16 the workforce performance, these numbers sound i think decent. San francisco resident 25 , approximately district 10 residents, approximately 10 . On the district 10 residents, i think weve got in the pasti can remember now because weve got so many reports, about what isor maybe, this is just kind of an open question, could we find out with the 10 of district 10 represents from a data point . For instance, wei am mostly interested are we picking up as many ablebodied available district 10 folks . If not, directly on these projects, through city build or some other communitybased organizations and we have the pipeline in place . It is hard to say 10 . It could be five stars, right . It could be a plus in terms of a gradebut are the people we are leaving behind is 90 , or 80 , then this is not such a great number. Because when you look at the statistics, 10 , that this is 10 of the hours, is a higher number than the population. Course that is not apple and oranges, but i just recall that the gentleman the Mayors Office of workforce economic and workforce development, said once, that there was more capacity, or more room, if you will, in district 10 for potential workers to be brought in. So if we can find that information and we can compare these numbers because you know me. Im always about the numbers unless ive something to compare them to. I will weekend make an attempt to gather that data. We found some of that data point. One thing that weve asked for that is rather difficult and expressed that to you, thats not to say that we wouldnt continue. To look at the total population within San Francisco and in district 10. When i say total population, what im talking about are the total population of construction workers that are registered with, lets say a union, or city build. Its a little bit difficult to gather that information because the unions dont quite share that fully they consider some of that data to be proprietary, i guess. But thats an effort were continuing to look at in terms of what is the total population within the district 10, lets say. We can gauge the statistics in terms of ethnicity, the makeup, and where they actually reside. But in comparison to the totality, that is i think the missing gap you are referring to. Right. I should correct myself you make a good point because not the 10 of district 10 residents are not necessarily all africanamerican. That is correct. Any other questions fellow commissioners . Please, call the next item matter secretary item nine, commissioners questions on matters. Mdm. Chairman any questions, comments . Please, call the next item wait. Just a minute. Hang on. Commissioner singh we wwant some permanent secretary soon. You people are working for the whole year and [inaudible] i dont know why we dont [inaudible]. Mme. Dir. , do you want to respond . Yes. The positions were posted and my team has been reviewing the responses but the executive assistant as well as the Commission Secretary. So we are now working on that. Hopefully, a selection, a recommendation would come from staff for the Commission Secretary and the decision can be made as early as may depending on how the process goes. Good job [inaudible] we need that to continue as a department and we have a budget now for that position. Yes. Okay. Thank you commissioner singh. Please, call the next item matter secretary item 10 close session. Soconference with Legal Counsel anticipated litigation. Significant exposure to litigation pursuant to paragraph two of subdivision d of section 54956. 9 of the california government code. Patricia lovelock versus city and county of San Francisco. Title eight case number 091774008 complaint filed with Us Department of housing and urban development. Initiation of litigation pursuant to paragraph four of subdivision d of section 54 54956. 9 of the california government code. One case. Mdm. Chairman mdm. Sec. Do we have any speaker cards on that item . I have no speaker cards at mdm. Chairman i would ask anyone not directly involved with this item 2, please, leave the room. We are back to open session. There is no report of the closed session. So mme. Sec. Please call the next item next order of business is item 11, a german. So moved. Commissioner bustos moves to a joint and commissioner pimentel seconded. Do we have to call the role . No. Thank you. [gavel] [adjournment]