>> ellington? >> aye. >> modejar. >> yes. >> singh. >> yes. >> rosales. >> yes. >> johnson. >> the vote is five ayes. >> item 5 e. workshop on the recognized obligation payment schedule for january 1, 2014 to june 30, 2014, rops, 13-14 b, discussion. >> i want to announce that i will to leave soon and if you don't think that it is rude i will turnover to rosales, when i step out. okay. sorry go ahead. >> thank you. commissioners, members of the public, as you are aware, although, you approved the budget, the board of supervisors and the mayor approved our annual budget, in july, of this year, and there are other layers of authority, and per state disillusion laws that provoids for a 6-month

look at proposed expenditures for what is called a recognized payment schedule or the ropses. a number of these have been approved by the over site board over the fiduciary obligations and ultimately the state department of finance has the final say and this is an informational presentation and no action today, but we will come back to you prior to final action, by the over site board and with that, the deputy director, will present this item. >> good afternoon commissioners, my pleasure to be before you once again, with the recognized obligation payment schedule, and director mentioned that this is ropses, 13-14 b and covering the period of january first, 2014 to june 30, 2014. and my agenda for this presentation is i will go over the background and format briefly and it will be familiar to all of us by this point and

go over the time line, of what our next steps are to get to submital. and then to get to an approved rops and do a break out on this funding source and then a break out by program area so you can understand by project area or program what payments are included here and talk about the next steps. and so again just as background, you know as we are aware, we are required by the disillusion law to report all of our payments in six month increments and just recognized the payment schedule, and it has been done five times to date. and so, we are continually evolving with dos. as they change the nomenclature and the formats of all of these and as you recall with the last laps they are starting to use this 13, 14 a, in this fiscal year and then a being the first

half of the year and the period that we are in now july to december and therefore, b as the second half of the fiscal year and confusingly the first half of the calendar year and but b is the second half of the fiscal year and so therefore, here we are and looking at 13, 14, b. and since it is the second half of the fiscal year, it does make our job a little bit easier in that we came before you in 13, 14 a and we have to figure out the fiscal year budget at the same time. and this being the second half of this year, we have an approved budget to work from and it is easier and just continuing that budget plan that you have already seen. >> so, a couple of new things, from the state, they have created a new way to provide the rops. and what they have come up with is the rad app which is the redevelopment agency disillusion application. and basically a web based application that allows us to

download a template and work on it and then up load it back to dop website and it is a more automated way than they have done in the past and they have made a couple of changes to the content of the rops. and there are still five work sheets and they have changed smf the work sheets and a summary work sheet that will total everything out in the end and there is a new report called report of fun balances. that is a summary of all of the different funding source types, and what the balance was at the end of rops three and an estimate of income and expenditures in rops 13, 14, a and that is not included since we are working on that and we are working on that and we can provide that information hopefully by the next meeting and then we have the rops detail which is the traditional rops work sheet and that is mostly the same with a couple of key changes and one thing that is they have added a new

obligation type field and they gave us a list or a menu to choose from to identify each line on the rops as an obligation type and they gave us 25 items on this menu to choose from most of which do not match anything of what we are doing and so most of ours fall within a handful of them, for instance, they have one that is for a dda, or other contracts for infrastructure or something for construction and things like that, obviously administrative items, and we do have some things that we had to pick and we have to refine that as we go through the drafts since this is a new field to find the right match from the 25 choices they now have a retired field and before there was no way to say that we are done with this item and we would like hand strike through for you on your copy so you would see the ones that we were proposing to get rid of now they have a field to indicate that and on your copy i have shaded that gray for you and

those are the ones that we are saying, that we are done and we don't need them any more and they are retired and that they keep, or they will always have that same rops number and so we can't reuse that item number and they are sort of frozen and we don't need to use them any more. and then they deleted and used to have a total year and for some reason they got rid of that. and one other thing is that some of these fields that we have been able to leave blank over each, and some of the total outstanding debt or obligation and some of the contract dates and we have left blank and see the notes if they don't fit and now that we have gone to the web based obligation, we will have the date fields entered into because the web application cannot read a text and so we are filling in some of those blanks and it is just the data that it is going to require and so we are working on that and we have the report of prior period of adjustments and this is similar to the prior period of pavement report that we had

before, and this is different, and it has more calculated fields to show the variances along with the opportunities for the controller to report something there if they choose too. and then the notes is the same as before, optional notes for any items. >> so again, our time line is we have to submit the b rops every year by october first, when we came before you for 13, 14, a our deadline was march first and those are the two dus time lines in a year. 45 days after we submit the dos has to come back with the initial review and determination letter. if they disallow something that we disagreed with, we will submit a request which is five days after they issue their first letter, and then at the end of the day, we are supposed to be through all of the meet and confer, two weeks before our pptf distribution and so for the next distribution will be on january second and so we will be expected to be threw

all by december 18th. >> our local time line is to workshop this here with you today and we are doing a similar workshop for the oversight board on this coming monday on november 9th and then the oversight board will take it on september 9th. and on the third the board will take action and then on november 7th. the board takes action and then they will be getting back to us by november 7th. that is the earliest that we will hear back on the initial determination. >> still the same funding sources and just reordered, and the bond that includes the prior proceeds in hand and any anticipated new bonds which in this case, as we discussed in our budget would be some bond

proceeds from mission bay and reserve the balances that survived the due diligence, and non-tax, and non-proceeds and payments from the developers and federal or state grants and they have now pushed to one side in its own grouping and rtpf the non-admin is the use of the tax increment and the admin is the aca, or the cost allowance, which is the max is 3 percent of the property tax request. >>. if you have a new item, and you have to go all the way to the bottom, and so there are new at the very end of the rop. but i just wanted to highlight for you the totals and these are draft numbers and they may change, and we are continuing to refine but this is where we are right now. and so in terms of rptf request

we are showing 87.7 million dollar request for the period and 85.3 percent of that of the non-admin which includes the debt service which is the largest amount and then 2.4 million. for administrative uses outside of the tax increment, the biggest amount is for existing bonds, about 46 million, the majority of that is in our housing projects which we may recall that are low and moderate housing fund had the existing bond proceeds that are committed to projects and continue to spend those down and mention doing the new mission bay projects and estimating right now, 43 and a half million and refining what that amount will be for mission bay and that will be for reimbursing the infrastructure along with doing the affordable housing. 15.4 million in reserves and 90 in others, sxh terms of

developer payments and etc., the total is 289.8 million. >> here is a break out for you, just of the tax increment request by the sort of the project area, or the program area. and just to give you a flavor of where the dollars are going. and we have about 4.6 million across all of our project staffing or project delivery costs that may be payment to other city agency and retiring medical costs and general operations costs, and about half a million and i am rounding here to the nearest million or half million or so. and so we have the continue to request the tax increments and make our local match for the federal economic development and administration grant in the shipyard for the arts and technology district. requesting some bay view hunter tax increments to go into the public housing project and that will be an item that will come

before you in the period. requesting from the 2113 housing and the project that is under way. and again, the big request in mission bay to reimburse, and existing obligations that we have as well as new obligations. and in the transpay. and 1.6 million, we have asset management costs related to the fillmore site over a half a million and the bulk of this is around the debt service and bond costs and so the total request is 87.7 million. so within each major approved development project on the non-housing side, this gives you a summary of the activities of the payments that are around and so, in the hunter's point in the candle stick point area continue to make the payments related to the cost related to

land transfer and property management and arts and technology district that is funded by the eda grant and the match that we make, the cost associated with securing the federal and state financing and then the consultants and other city services that we pay for. in mission bay, the biggest use is reimbursing the developer for the costs and we are also continuing to work with the city and the controllers oftens about those tax increments corrections and sort of a one-time adjustment for some items that were either misidentified or not caught in the previous distributions and so, we have been working with them, and have gotten approval from the state on 13, 14, a and while we don't know the exact amount of what that payment will be and we should be able to get approval for whatever the city approves we should be able to collect. so we put sort of the biggest amount or estimate that we have and we will see what gets processed by january second. >> and we also need to be paying down the bonds related

to cft number four and then have the funds related to the mission bay public art program and the transbay will work on the open space design. and costs and then the fulsom street off-ramp reconstruction the expenses. and transfer of the tax increment to the power authority to the parcel sales and again, and the major approved on the non-housing, and 900 million worth of payments and all funding sources and this is using outside funds. >> on housing, we have sort of four project areas, that we are focused in in bay view hunter's point, which includes the candle stick point area, as i mentioned hunter's view and the city's first two, projects to continue to fund the

obligations. and then in providing the construction funds and then we will hope to issue in rfp for a new block, 6th east in the fiscal year and it will seek to use the funding for the predevelopment to get that project under way. and we will pay down the preexisting loan on south of market and then in transbay, the block, six and seven projects are under way and we will be providing that predevelopment and construction funding for those, projects and then, block nine, which is just under way in terms of selecting the developer and working in the predevelopment that we will hope to be providing the construction funds by the end of the fiscal year as well. that is 132 million in payments for the housing projects and again a majority of that is for the bond programs in hand and plus the new funds coming in. >> in terms of our asset management areas, this includes the western addition, the

center and gardens and south beach, including the harbor, and i mentioned we have asset management costs related to the fillmore heritage site in terms of operating the garage and the commercial space, and obviously the biggest use of funds is the gardens and so, we have capitol property management, and cultural programming costs. and the jessy square garage and operations and debt services and the payments related to other cultural facilities and the museum of african for capitol and operating costs and then predevelopment funding for the proposed mexican museum project. and in south beach, to continue to fund the operations of the south beach harbor and then there is also a payment that just represents the transferring of the balance of the funds that we have to the port related to the security around ren con park and so that was ten million dollars in total around the asset management costs. and so for the administration operations, and the bond debt

service, we have about 8 million of all funding sources, covering all of our operations that is our staffing, and our retiree costs and other general operations and then it is about 50 million and i am rounding here in terms of debt service and interest payments and in terms of what we pay in january, and then, a reserve to collect the tax increment so that we will have enough to make the next payment in august and i will talk about that in a slide or two and also there are just costs related to the trustee and so that is 58 million, between admin and operation and then the debt service related costs. >> and so more on that timing and so the service is paid through a two step process right now and it is sort of across two fiscal years which makes it confusion and so in june, the june it is transferred to the trustee, but

it does not pay out to the bond holders until august and so that is cross two fiscal years and in rops three, we showed that june transferred to the trustee as an expenditure but it is august and the transfer is not a expenditure and so that is confusing and so what we are trying to do here is sink it up so that we are all just paying everything in august. but for right now, what we want to do is be able to make sure that we have enough across the two rops periods that we can make our debt service payment and so we need to make a payment in january and then we need to collect the funds to have in hand and that is what we collect in the rops 14, 15 a to make the payments in august. so we created the debt service reserve line to spread it across the two fiscal years.

>> here is our time frame with the milestones and i want to highlight a couple of things that are going on in the meantime. so, we are going through our workshops that october first date, in blue that you see there is the statutory deadline and so we have to get something in by october first but we hope to have something by september 23rd. and while we will be in the midst of meeting and confering and pulling that together and to just keep in mind that the long range plan is due in november on that due date and so we will be on working on tracks there. and gun, they should be giving us the final determination no later than december 18th and make the tax distribution on january second. that concludes my presentation. and i am available for any questions, thank you. >> thank you.

>> i think that we have a few questions. >> do you have speakers cards. >> i have no speaker cards. >> oh, there is. >> i apologize. it is washington. >> yes. >> is collects so much water that is just squeezes. and so what i see now is my next project is going up to the rops to stop the rop. and so you, and you all are so bent on making the rops looking so good in sacramento and i will have to take a bus up there and testify, on those halls there so what goes on down here at city hall. you all? this is unacceptable and i have come up here in plenty of times and i ain't got time for errors no more, if you want to sit down and see how we can move forward and what we call the

community reform so that you can report back to jerry, jerry been around twice so that he can report and say that you did it with the community. how in the hel are you going to move on and keep using fillmore or whatever and the way that the agency and the prior agency done to us? okay. bottom line, i am jumping and praying, immediately, that i could sit down and talk with the president and the executive director and the people who are in charge. to find out how we are going to move forward in a way that