Present. Commissioner scott. Here. Vice chair rosales is absent. And chair bustos. Here. And all members of the commission are present. And item 2 is announcements. A, the procedures. Please be advised that a member of the public has up to three minutes to make Public Comments on each agenda item unless the Commission Adopts a shorter period on any item. Viewers online will be instructed to dial 1 888 5578511. And enter the passcode 7500645. Followed by the pound sign. Press the pound sign again to enter as a participant. And again that number is 1 888 5578511. And then enter the access code which is 7500645. Press pound and then pound again to enter as a participant. The members will show up on the screen during each Public Comment section. When you are connected listen to the instructions and when prompted dial 1, and then 0 to be added to the queue to speak. Youll be lined up in the order that you dial 1 and 0. And you will be placed on mute and it will notify you when its your turn to speak. All callers will remain on mute until their line is open. Everyone must account for the time delays and speaking discrepancies between the live coverage and streaming. It is best to call from a quiet location and speak clearly and slowly and turn down your radio or phone to avoid feedback. And item 3, actions at a previous cloagzed session meeting, if any. And the next order is matters of unfinished business. There are no matters of unfinished business. And the next order of business is matter 5, consent and regular agenda. First the Consent Agenda. 5a, approval of the minutes, regular meetings of may 19, 2020, and june 2, 2020. And 5b, authorizing the executive director to enter into a memorandum of understanding with the city and county of San FranciscoControllers Office for Financial Systems accounting and audit supports on an ongoing basis in an amount not to exceed 245,000 for fiscal year 20202021. And in an amount for future years subject to appropriation discussions, resolution number 112020. And 5c, the director to execute a memorandum of understanding for the San FranciscoPlanning Department for Design Review and Environmental Review services and subject to annual appropriation of funds. Discussion, resolution number 122020. Mr. Chair. Chair bustos do we have anyone from the public that wishes to speak on this item . Your conference is in questionandanswer mode to summon each question press 1 and then 0. Clerk at this time the members of the public who wish to provide Public Comment should call 1 888 5578511. And enter access code 7500645. Followed by the pound sign and then pound sign again. When prompted press 1 and then 0, to be placed in the queue. Let us know if theres callers on the line. There are no callers on the line at the moment. Clerk and there are no members of the public to comment on this item. Chair bustos so hearing theres no request to speak on this item i close Public Comment. Commissioners, these items are routine business items that are coming before the commission and thats why theyre on consent. May i get a second a first motion to move these items . Yes. I move that we would move on the item and approve of the minutes that were read. Chair bustos thank you. I second the motion. Chair bustos thank you, commissioner. Madam secretary, please take roll. Clerk Commission Members please announce your vote when i call your name. Commissioner brackett. Aye. Commissioner scott . Yes. Vice chair rosales is absent. Chair bustos. Yea. The vote is three ayes and one absent. Chair bustos great. Madam secretary, the motion carries. Please call the next item. Clerk the regular agenda 5b, authorizing the executive director to enter into a memorandum of understanding with the city and county of San Franciscos treasure and Tax Collectors Office to perform Investment Funds held by trustee not to exceed 35,000 for fiscal year 20202021. And in an amount for future years subject to appropriation. Discussion and action resolution number 132020. Madam director. Thank you, madam secretary, and to the chair, this item before you is also a routine item where this is a first time to bring an item like this in front of you, the m. O. U. In partnership with the treasury and Tax Collectors Office. And the treasurer and Tax Collectors Office is the citys banker and we typically hold funds within the Treasurers Office as well as by the trustee. And the Treasurers Office is responsible for investment of all funds in the citys pool. We actually have bob shaw, the chief Investment Officer, on the line and available for questions if you have any. And because weve held the funds, we also hold our funds with o. C. I. s instructions for within that fund. The Treasurers Office has done an amazing job with the funds on hand in the pool that would like to actually invest not just the funds within the pool funds but also funds held by the trustee. So what you have before you is a Year Contract and to see this ongoing up to 35,000 full Investment Management services, plus with indiscernible . And also on the line as well is my Deputy Director of finance and administration with respect to questions. And so is bob shaw, the chief Investment Officer for the city and county of San Francisco. And we really appreciate their service as well. Good afternoon, commissioners, i am the Deputy Director for finance and administration. And the executive director said that were here today to talk about an m. O. U. With the treasurer Tax Collectors Office and as the executive director mentioned we hold our funds in two places. Some are the less restricted taxes are held with the city pool and they are invested with the treasurer and the treasurer has done a fantastic job with those funds. We earned in the fiscal year 201920, we earned multiple Million Dollars of investment earnings to now spend on projects. Wed like to apply that same success to the funds that are held in trustee, funds that are held in trustee are generally more legally restricted funds such as bond proceeds or pledged property tax. And we would like the treasurer to invest for us as well. And i should mention that we do have an existing m. O. U. With the treasurer that the commissioner approved in 2014 and its under that authority that the treasurer invests the funds in the pool. So what were here today to talk about is an additional m. O. U. That would extend the same Investment Authority with our funds with trustee. You may recall that in 2014, the Commission Also approved an Investment Strategy and the Investment Strategy is a guidance that the treasurer would use when investing our funds. And our Investment Strategy prioritizes safety first and then liquidity and then returns. So what that means is that the number one thing that we care about is preservation and capital followed by liquidity which means will the funding be available for use when we want to use them. And then only once we have met those two goals do we think about gaining returns. And so the treasurer will ask under our existing policy that was approved by the commission in 2014 and theyll also act in the permission for each of the blond documents. And as said, the expenditure for 20202021 is 35,000 and thats based on actual cost extended on an estimated blended rate per hour. And thats taking all of the rates for the projects as well as any nonlabor costs for systems, etc. , and blend it into a blended rate of indiscernible . And the term of the m. O. U. Would be ongoing which means that they would be automatically renewed each year and we would work out the costs of m. O. U. On an ongoing basis each year as part of the budget process. Specifically the services that is provide side that ocii will provide the cash flow schedule to t. S. S. To know when we thank we need to draw on their funds. They will do the modeling to make sure that the cash is available when we need it. They will recommend and then actually to direct the trustee to make the transactions and to do the settlement and then theyll also make all of the accounting entries to record all of the security transactions. And theyll also be doing credit analysis, looking at the creditworthiness of all of the investments. And making sure that the proposed investments pass muster with the committee. And as the executive director said, i have bob shaw here who is the chief Investment Officer from the treasurer Tax Collectors Office. Bob, you want to video on and give a wave. Hi, everybody. I am here to answer any questions that you might have. I think that nadia and bree have done an excellent job on describe wag we plan to do. But im here to address any questions that i mighquestion y. Chair bustos before we go to Public Comment theres someone who is near a window or is outside, if you could please put yourself on mute, that would be helpful. Great, thank you. Madam secretary, do we have anyone from the public who wishes to speak on this item . Clerk at this time members of the public who wish to provide Public Comment on these items should call on this item should call 1 888 5578511. Enter access code 7500645. Followed by the pound sign. And then pound sign again. When prompted, please press 1, and then 0 to be placed in the queue. An automated voice will let you know when its your turn to withdraw your question press 1, and then 0. For any members of the public who were on the phone before this session came up and if you would like to submit your Public Comment request dial 1, and 0, so you can be placed in the queue. Your conference is now in questionandanswer mode. To summon each question press 1 and then 0. Miss lynn, do we have any callers on the line . Madam secretary, there are no callers on the line. Clerk thank you. Mr. Chair, there are no members of the public on the phone that the time wishing to comment on this item. Chair bustos okay. Just wait a little bit more to see if anyone wants to speak. Hearing that theres no one wishing to speak on this item, i will close Public Comment and ill turn to my fellow commissioners for their comments and questions. And lets start with commissioner brackett. Commissioner, do you have any qhents or a question . Commissioner brackett yes, i have three questions. So my first question is do we know what the aggregate amount of benefits that we received from the 1. 9 return that we got on the investment . So what that actually means in dollars . As a percentage. I can speak to that, and it was about 6 million this past year. Commissioner brackett okay. And then my other question, was there a previous cost for managing these expenditure funds . If so, what were those costs . This is the first time that were entering into a relationship to actively manage these funds. Commissioner brackett so theyve just been sitting and holding . Yeah, theyve been held by the trustee up to this point. Commissioner brackett okay. And my last question is basically what are the proposed earnings for this fund or is there any kind of projection on what the return on investment would be for managing these funds through t. T. S. . Well, you know, i think that the treasurer plans to use a similar strategy, so the strategy that they use for the overall city pool, so i think that you could roughly expect the returns to be similar. But ill let bob speak to that to provide a little bit more color. Thanks, bree. I think that the way to think about the theres really two questions which is, one is always whats the Interest Rate that were going to get . And then what are the cash earnings . The environment has changed dramatically over the last year, if you look where the Interest Rates are right now and what we would be able to get in the market, that 1. 9 that you saw over the past 12 months and Going Forward is not attainable in the market. Were probably somewhere depending upon one of the things that we havent completely reviewed yet is what that cash flow calendar for these bond fund says going to look like. In other words, how far out how long of a maturity can we invest. And if its outwards of one to two years, then were probably talking sorry just about to go into jargon talking about half a percentage point in terms of yield as opposed to 1. 9 . A lot of what has happened in the market in the last six to nine months as the Federal Reserve has taken Interest Rates from close to 1. 5 to 2 , to closer to 0 right now for the u. S. Treasuries. So my estimation of where the yield on the pool funds that were looking at here is between 50 and 75 basis points. Thats my upper end estimate, but, again, once we get the cash flow calendars, well know more. Commissioner brackett and then lastly, about how much of our or what is the aggregate total of the amount of funds that were talking about . It is about 350 million. Commissioner brackett okay, thank you. Thats all. Chair bustos great, thank you. Commissioner scott, do you have any comments or questions . Commissioner ransomscott no questions. Just the comment to thank bree and bob and for your questions you have really satisfied i have no other questions. But thank you for the report. Chair bustos thank you, commissioner scott. Is commissioner rosales on the line . Has she joined us yet . All right. Just want to echo commissioner scott and just thank the staff for providing this presentation. I think that its a good step in the right direction. And im glad that we have our city family helping us to manage these funds. So with that, i will need a motion and a second. Is there a motion . Yes, i motion that we authorize the executive director to enter into a memorandum of understanding with the city and county of San Francisco treasurer and Tax Collectors Office to perform Investment Services for ocii funds held by trustee in an amount not to exceed 35,000 through fiscal year 2021 and amounts for future years, subject to appropriation resolution number 132020. Thank you. Chair bustos thank you, commissioner brackett. Second that motion. Chair bustos thank you for seconding it, commissioner scott. Madam secretary, please take roll. Clerk please announce your vote when i call your name. Commissioner brackett. Commissioner brackett . Yes. Commissioner scott . Yes. Vice chair rosales is absent. Chair bustos. Yes. Mr. Chair, the vote is three ayes and one absent. Chair bustos great, thank you. Motion carried. Madam secretary, please call the next item. Clerk agenda item 5e and 5f related to the budget approval will be presented together but acted on separately. Item 5e approving a budget for the period july 1, 2020, through june 30, 2021, and authorizing the executive director to submit the budget and ratifying and confirming the executive directors submittal of the interim budget to the Mayors Office and the board of supervisors. Discussion and action resolution 42020 approving a budget for Community Facilities districts administered by the Successor Agency for the period july 1, 2020, through june 30, 2021. Discussion and action, resolution number 152020. Madam director. Thank you, madam secretary. I appreciate, through the chair, i appreciate that we have an opportunity to come back to you. If you recall last Commission Meeting we were before you to give an overview of our budget. And we got some feedback where the budget that would be presented before you doesnt have much changes so this is really a recap. But i wanted to also take the opportunity to just kind of highlight what our driving force is in terms of creating new inclusive neighborhoods and shipyard indiscernible and that the budget before you reflects an acceleration of the production of new housing which includes both market rate and Affordable Housing. It requires the investment in disadvantaged and atrisk communities. So funding for lowincome families and Public Housing and seniors, homeless, including then creating not just lowincome family, but low budget services. And creating new Public Infrastructure and open space and prioritizing the connectivity and the ability for resilience and showing that we are building design, neighborhoods, Transportation Networks and environmentalally conscious infrastructure. And also includes the recognizing of the opportunities for local businesses and workers. We continue to strive for the participation of low workers and businesses in all of our projects. We use lowcost Public Financing to ide