Sfgovtv test test test test test test test test test test is good morning. The meeting will come to order. Welcome to the thursday, april 16th meeting of the government audit and Oversight Committee. I am the chair of the committee joined by aaron peskin and Committee Member matt haney. Thank you to the clerk, john carroll. I would like to thank sfgovtv for staffing the meeting. Mr. Clerk, do you have any announcements. Yes, due to the covid19 Health Emergency and to protect Board Members the board of supervisors legislative chamber and Committee Room are closed. Members will be participating in this meeting remotely as if they were physically present. Comments will be available for each item on the agenda cable channel 26 and sfgovtv are streaming the number on the screen. Each speaker is allowed two minutes to speak. Comments or opportunities to speak during the Public Comment period are available by calling 888 2045984. Use the access code. That is 3501008. After you have entered the access code you will press the pound symbol and the pound symbol a second time. When you are connected, and then zero to be added to the order in which you dial. While you are waiting the system will be silent. The call in system will notify you when you are in line waiting. All callers will be in mute until open for comment. You must allow for time delays between live coverage and streaming. Call from a quiet location, speak clearly and turn down the television or radio or streaming device. You may submit your Public Comment in either of the following way also. Email john carroll, clerk of the government audit and Oversight Committee john. Carroll at sfgovtv. Org. If you submit Public Comment by email, it will be included in the file and brought to the attention of the members of the board of supervisors. Written comments bab may be seno city hall at room 244 in San Francisco. Items acted upon today will appear on the board of supervisors agenda of april 28 unless otherwise stated. Thank you, mr. Clerk. Please call items one and two together. 1. Resolution authorizing the issuance and sale of special tax bonds for the Community Facilities district 20141 related to the Transbay Transit Center in the amount not to exceed 90 million. Approving related documents including the statement and the supplement. Bond Purchase Agreement and continuing disclosure and determining other matters in connection there with. Agenda item two is resolution approving the issuance of Transbay Joint Powers Authority not to exceed 315 million in Principal Amount of tax allocation bonds to finance costs relating to the transbay terminal project as defined within the resolution. Members of the public to comment on these items call the Public Comment number 888 2045984 and Center Access code 3501008. Press pound twice and press 1 and 0 to speak. Mr. Chair. Thank you. I would like to welcome the director of the office of Public Finance and the chief Financial Officer of the Transbay Joint Powers Authority here to present on these items this morning. Thank you. I am anna from the Controllers Office of Public Finance. I am here today to talk about the two related transbay bond resolutions. The Transbay Transit CenterCommunity Facilities district special tax bond and the Transbay Joint Powers Authority tax allocation bond. Due to technical constraints, i will present on both items. The cfo is available to address any questions you may have. Also, my colleague bridgett and mark from the City Attorneys Office are on the line. Before i get into detail on the financing, i will provide background on the project. Tjpa was established in 2001 to fund the Transbay Program. Current members of the jpa include the city, ag transit. Cal tran and california highspeed rail authority. Tjpa manages the Transbay Program which includes construction of the Transit Center and extension of the caltrain rail tracks to the center to accommodate california highspeed rail and caltrain. The project over the past two decades includes in 2005 the redevelopment project area was formed. In 2009tjpa secured the loan to fund the project. In 2015, the city approved the formation of Community Facilities district and the levee of special taxes to support 1. 4 billion of debt. In 2016 after they identified the funding gap, the city provided bridge financing to close the gap which included the general fund. The takeout for the financing wasnt visioned to be the tax allocation bond proceeds which i will talk about in a minute. Funding for the project was provided by a variety of federal state and local sources including special taxes on the tax bond. Tax increment generated Redevelopment Area which paid debt service on the city bridge loan. Again, the two bond resolutions before you today would authorize the issuance of up to 90 million of Transit Center special tax bonds and related financing documents including disclosure on the city which we have been updating to include the Current Crisis. The second resolution would authorize the issuance up to 315 million worth of tax allocation bonds. Proceeds from the financing would be used to payoff the full Outstanding Balance of the city bridge loan which is 76 million. Refinance the loan for debt service savings, fund project costs including costs for design, construction and related obligations as well as tenant improvements and Program Capital reserves. Here we have provided more detail on the anticipated use of proceeds. The cfd proceedings and jtpa proceeds will be used to pay off the city bridge loan financing. The tjpa proceeds will be used to refinance the federal loan to achieve approximately 20 million in debt service savings. It will Fund Capital Improvement program reserves and capital replacement reserve. Additionally, a portion of the proceeds of both financings will be used to fund bond issuance costs in debt service funds. These final slides show the estimated financing costs for each transaction. For the bonds we estimate 158 million over the 30 year term of the bond. This includes interest of 4. 4 . The bonds will be structured as taxable debt which carry a higher interest cost but offsetting the higher interest cost is the strong expected rating of aaa plus for the bonds which is due to the cfd participation in the citys tr plan. The debt service 587 million for the jtpa tax allocation bonds assumes interest cost of 3. 86 . The lower cost is anticipated because they will be structured primarily as taxexempt debt. This last slide outlines the anticipated financing schedule. I would note that given recent volatility in the Municipal Market we are allowing more time for marketing and sale of the bonds before the closing in may and june. With that, i would be happy to answer any questions as would my colleagues. That you for the presentation. Before we go to Public Comment, colleagues do you have questions or comments . I do, mr. Chairman. There is aaron peskin. Maybe this is a question for the Transbay Joint Powers Authority, but in item 2 why does the city and county of San Francisco need to authorize . Why cant the tj pa do its own financing . I would be happy to answer that question. This is chief Financial Officer at jtpa. The resolution is in front of you because we are joint Powers Authority and all financings have to go in front of the board in which we are doing the construction, the physical construction within or the financing will take place. It is part of state statute for jpa law. We are required to come to the San Francisco board of supervisors so the board can find Public Benefit to the financing. That would be defined as demonstrated savings or economic benefit in terms of job growth. There is another faceto that. That would be so you can find Public Benefit to the financing for jtpa. Thank you for that answer. With regard to the 115 million portion of the tax allocation bonds, that references payments of judgment or settlement obligations. Is that sufficient funds for any and all outstanding payments of judgments or settlement obligations . Yes, it is. So that would be in part what this committee will be discussing later as well as other outstanding claims presumably the web core litigation . Any web core litigation, any litigation between any of our main contractors and subcontractors would be encompassed in any sort of litigation proceeds. The 115 rate is sufficient funds to settle any and all outstanding judgments and claims . Yes, correct. Thank you. Supervisor peskin, if we can move to Public Comment. Mr. Clerk are there any callers on the line . We will check. Are there any callers . I have one caller waiting in the queue. I will call him up. Good morning. You have two minutes. Good morning. My Public Comment was for item 4. I will wait. That sounds good we will ask you enter into the queue for item 4 when we call item 4. Do you have comments for agenda items 1 and 2 . No. Thank you. Are there any other callers . There are no other callers in the queue. Thank you. Hearing no further callers, Public Comment is now closed. I would like to move that we send these items to the full board with positive recommendation. Mr. Clerk please call the roll. On the motion to send the items one and two to full board with positive recommendation. Vice chair peskin. Aye. Member haney. Aye. Chair mar. Aye. Mr. Chair, there are three ayes. Please call item number 3. Agenda item 3. Resolution approving the levy on the secured roll of add valour rum and special taxes on subproject areas g2 through g4 and subproject areas i1 through i13 for city and county of San Francisco infrastructure district 2. 20192 for pier 70 leased property and city and county San Francisco special tax district 20201 for mission rock facilities and services and making findings in connection there with. Members who wish to comment on this item agenda item 3 should call the Public Comment number 888 2045984. Enter the access code 3501008. Enter the pound symbol twice. Then press one and zero to be entered to speak when Public Comment is called for this item. Mr. Chair. Thank you, mr. Clerk. We have the finance team to present on this item. We have rebecca, the port water director available for questions as needed. The floor is yours. Thank you. I am Wyatt Donnelly on behalf of director forbes who is a Disaster Service worker in response to covid19 emergency. I will present on this item. I will pull up the presenttation. Can you see that okay . Yes. Excellent. I will get started. Again, this item number 3 is to levy the taxes. I would like to thank the Assessors Office for work on this item. We have been working closely with them and they are in full support of this item. I will give background on the project. This affects both projects. I will go through the financing structure and why this is a key component and i will talk about the action taken today and impacts on the financing for the project and talk about the requested action and some next steps. The two sites it impacts are mission rock and the pier 70 only. You can see chase center is the reference. Mission rock is the giant parking lot. Pier 70 is a shipping district that has been vacant for several decades. They will be mixed use neighborhoods. We are here because the board of supervisors has the ability under the state revenue and taxation code to direct the assessor to levy taxes on the secured and unsecured role. I will talk about those. Project background. Mission rock is a 28acre site serving as the giants parking lot. At completion over four phases of construction it will create 1200 units of housing, 1 million square feet of office space and 8acres of parks and open space. Housing includes 40 on site affordable. There is a local component. Transportation management program, rehabilitation and historic pier 48 which is on the map to the right, one of the historic piers. We are looking at potential options for that. Ongoing revenue stream for Sea Level Rise protection, planning for the year 2100 and on site child care. Pier 70 is a 35acre site. It will include 1600 to 3,000 units of residential. 1. 1 and 1. 7 million square feet of commercial and 9acres of open space. The range for both projects is flex parcels residential or commercial, depending on what ends up being constructed. Public benefit for the pier 70 project. 30 of the housing on site affordable. It has local labor, prevailing wages, transportation, historic rehabilitation of the entire site including buildings 12 and 21. Similar Sea Level Rise protection facilities. Looking at the year 2100 and ongoing revenue stream for Sea Level Rise protection. 90,000 square foot facility and on site child care. The structure is very similar for both projects. Initial funds is through developer import equity, which is repaid with a return through the land value at the site, and the two tax sources, special taxes or cfd Community Facilities district and i. F. D. Infrastructure financing. Those are the ultimately repayment. The item today is all about maximizing our bond proceeds which will reduce the use of developer capital which is more expensive for the project and preserves the portland value to allow the port to fund other projects on the waterfront. Just four terms to talk about a lot. Possessory interest tax is property tax on the value of the lease use or other private possession of publiclyowned property. Because the port is publicly owned it is taxexempt. When the port leases to private entities for private use, it is taxed by the assessor under the possessory interest. The ad valorem. That is on the assessd value of the property. The property tax is a common form. That is one of the two taxes as sessioned on the secured role. The other is a special Community Facilities district tax which is currently in the process of being formed for mission rock and was formed in january for pier 70. The secured role is more secure including taxes on land and structures. Unsecured role has an insufficient security for the assessor to deem that there is a secure payment of taxes, and the difference between these two roles has bond implications. That is why we are requesting both taxes be assessed on the secured role. What happens is the possessory interests are typically assessed on the unsecured role. However, the board of supervisors can direct the assessor to levee these all on the secured role. This would place the i. F. D. Property taxes and the cfd special taxes on the secured role. The key thing is it has a priority lien which inproofs the bond holders view and will receive better Interest Rates. Pier 70 and mission rock where we issue hundreds of millions of dollars of debt this can mean 10s of millions of dollars over the life of the project. As i mentioned before more bonds will increase the project funding and the portland value and reduce the need for developer capital. Once this is approved, the assessor will place all of these taxes on the secured role for next fiscal year and we will be able to issue bonds with that additional security and receive better Interest Rates in the coming year and we will be coming back with those bond issuance at a later time with more details and a better understanding of the market. That is pretty much everything. I would request positive recommendation for the resolution at hand. I am available and my colleague rebecca, the Waterfront Development director as well as the City Attorney and Public Finance attorney are available for any questions. Thank you so much for the presentation. Before we go to Public Comment, are there any further comments or questions from my colleagues . Mr. Clerk, are there any callers on the line for Public Comment . Thank you, mr. Chair. We will check to see if there are any callers in the queue. I have one caller in the queue. Allow me to call him up. I am francisco lacosta. What i want to