contemplated before the sixth amendment to the dda was executed. should there be problems after the land is conveyed, meaning that either the ground lease is not -- never executed or [speaker not understood], then agreements may be terminated and the agency and the developer have a 60-day period to file tentative arrangements to complete the project. if no arrangements are made [speaker not understood], ground lease block 49 to lennar and it will be their obligation to complete the project and enter into agreements that substantially act as vertical lease development agreement and option to ground lease or subsequent ground lease as it is before you today. so, the same terms that amco has. the small business and work force information has not changed since last october's

schematic design presentation and we are still in the design phase of the project. after the information on contracting will be available closer to construction start. but we have block 49 general contractor here today available to answer questions about the efforts to maximize local participation and we also have b.j. bookstore with ycd here today who can speak to work force referral process if you have any questions. there are a few additional milestones that need to be reached before the first affordable housing residents can move into block 49 units. once amco has an approved dodda option to ground lease, they can apply for bond financing and tax credit and as soon as financing is in place, lennar will transfer the land and subsequently a ground lease will be signed. and that will happen right before construction starts in june. approximately six months before project completion development team of said marketing of property in accordance with an agency approved marketing plan,

and [speaker not understood] can submit applications for lottery and slated to take place in july and the lottery will follow the preference -- which gives preference to hunters point certificate holders. as a first priority, western addition priority holders, rent burden and assisted housing [speaker not understood], san francisco residents in general, and the general public after that. [speaker not understood] will be able to move into the units hopefully in late 2015. this concludes my presentation and i'm available to answer any questions. >> thank you very much. any public comment on this item? >> i have one speaker card, doris vincent.

good afternoon. doris vincent. what has been presented before you has been vetted in the community. they were able to, at the charette, change some things if they didn't like. so, i hope that you will approve this because this is community driven. >> one more card, oscar james. oscar james, bayview hunters point, native resident. i support this 100% and i'm also glad the young community developers plan a significant part in this particular development. and i totally support now

lennar corporation for their commitment to do what we've asked for in the beginning and more. so, with that, i approve it and i'm glad it's happening, and i hope it will become a success for the rest of the community. thank you. >> d.j. [speaker not understood]. it's a tough one. good afternoon, commissioners. d.j. brook ter, director of [speaker not understood]. i want to echo what we hear from the community. we've worked tirelessly alongside am cal and ocii. looking at schematics and [speaker not understood], they've been a friend to the community since day one and we support moving forward with this as is. thank you. >> thank you very much. further public comment? okay, thank you very much. questions from fellow

commissioners? commissioner singh. >> yes, it seems like a very good project, but i'm concerned about the parking 60 units, only 45 parking, what they'll do for the other. >> yeah, so, the parking ratio is .75 parking spaceses per unit, which is consistent ~ with the planning code that doesn't allow more than one parking space per unit. and what we did to mitigate the situation a little bit, we included a car share space as is now required by the planning department as well so people have access to a car and to transportation even if they don't own a car themselves. >> so, if they have a car, where will they park? >> well, they can use one of the 45 parking spaces within the building or parking on the street. >> is there lots of street

parking? >> yeah, there is. there is street parking on the entire parcel of the shipyard. >> okay, thank you. >> thank you very much. any other questions? >> i have a question -- >> commissioner ellington. >> sorry. no, just excited about the project because i think, you know, i've seen kind of the work that's been put into this project and, you know, want to actually see it move forward and i'm hlsd we're making this step today. ~ glad >> thank you very much. commissioner [speaker not understood]. >> i have a question about the implementation of our sbe program. i ask this question often and i'd like to get maybe the next, next reports going forward capturing minority women participation in these numbers because from what i can see, we have 52% sbe participation and

professional consultant services, 47 of that number are san francisco based, 29 of that number, i believe, are minority-owned, and then i'm trying to figure out where the 22% from women come in because when i do the math, that's 51%. so, i'm trying to figure out how many minority women are part of the team. so, that's my question. my questions, i want to make sure that there's a robust outreach among all participants in our local business economy. so, that's one question. i don't know that we have any for now. >> well, i don't have anything in addition to kind of like the list of consultants p that was part of your package. but we can break it out more clearly in the future so you can ~ -- so you see the information that you're asking for. which is women owned businesses. >> yes, minority women owned businesses. >> yes.

>> and, so, we only have, of course, numbers for construction, but i guess my -- it's more of a question and comment. how can we be assured that there's going to be this -- a level of diversity among the construction contracting pool? >> so, the general contractor who is on board, cahill, they're familiar with all the sb requirements, the work force expectations that we have. and they will be working with the support structure that has been put in place, for example, the construction assistance program, cap, with an on-site office at the shipyard. and their job is to reach out to local contractors, make sure they are aware, help them prepare and get ready to bid on opportunities that are coming up. so, that's one of our ways to ensure that we have solid local

participation. >> okay, thank you. >> okay, thank you. i do have a quick question. and this was a question that came up for me in light of our discussions on the m-o-u with the mayor's office of housing. so, it's about the marketing plan. a couple things. so, the first is the primary lease out so, you know, the first time the apartments are leased out. it's very prescriptive norte vertical developer in terms of how they're supposed to do their outreach, through news outlets and things like that. what is -- how does that method reach people digitally or through other methods? what i see are print advertisements and the vertical developer specifically is not

required to do anything -- we're not allowed to comment or approve any other method that's not what's laid out in the section, which is just print advertisers. so, very thought given to other methods? like i know, for example, you have vertical developers typically have marketing websites and things like that. so, did you that happen? >> yeah, the vertical developer and the team obviously is not limited by only print advertising and i know that there have been a few questions and suggestions how to improve the marketing and outreach that will be done by the vertical developer in collaboration with the mayor's office of housing. and, so, i asked maria benjamin who is the person on the mayor's office of housing staff who is leading that effort to give you her expert answer. >> thank you. hi, everybody.

we will -- as i spoke about last week, we will be -- we're working on this portal that we'll be able to have information that anybody in the whole city can access about affordable housing developments that are opportunities that are here. it's not going to be ready in july. i really don't think the portal will be up and running in july, but we will advertise on our own website, on the mayor's office of housing website and send out to our e-mail list of like 14,000 people who are -- who sign onto our e-mail list in order to find out whether ~ when these kind of opportunities become available. we have been working with developers and we'll work with lennar on how to make their applications digitally

accessible and be able to meet the digital needs of folks that are serving. so, that's my professional -- >> okay, quick question for you. you said the portal will be ready by july? >> july of next year so more than a year? >> no, it should be ready by july of next year. sorry. ~ >> okay. since you're here, next question is, so, this is a form of lottery, there are a couple ways to do it, but this is the form of lottery the developer actually running the lottery and there are preferences for certificate of preference holders. but i wonder what is the role of the mayor's office of housing in reaching out to certificate of preference holders? i won't necessarily speak to how the lottery is structured because, again, there's only so many ways to do a lottery once you have the numbers or however you're doing it. but how are you going to make sure that certificate holders in the right order are -- their names are entered properly

rather than just having an open portal for none? ~ anyone? >> no, yeah, we have very complex and simple at the same time procedures of about the certificate of preference lotteries. we have staff that monitor, work with the developers and actually monitor that lottery and ellis act housing preference act lottery will come into play with these units as well. and, so, we are hands on working. we attend the lottery to ensure that the certificate of preference lottery is being done. we also -- we do do -- the developer will have to reach out to or actually finance our reaching out to the certificate of preference holders that we have. and when we do reach out to them, we ask them to contact us

if they're intending to apply for a unit so we can make sure we're really working with them. so, when we see the list that comes back from the developer about who is in the lottery, we know who has been -- who intended to apply. if they're not on that list then we make sure they are if they want to be. >> okay. now, i'm happy -- i'm sorry, [speaker not understood], i apologize. if you feel like you need to, please come up. i'm going to ask you another question. it's been a few days? >> yeah. >> so, apologies if you haven't gotten to this part yet [speaker not understood]. the first thing is the ellis act, that's different than certificate of preference, right? how do i phrase this question? i guess -- first of all, everything you said that's not

in the vertical dda, so, where is that covered -- >> it's in the cop [speaker not understood]. it's in the amendment to the ordinance that was done in 2008, that any opportunity that becomes available -- any affordable housing opportunity that the city or the agency has financing followed those rules. >> of the developer having to work with you to reach out to certificate holders and everything you just said? >> um-hm. >> my interpretation of that. >> okay. >> okay. well, i think that's something maybe for staff to follow-up on because i don't necessarily want to hold up the process. we looked at block 49, this project a lot because my commentary is not necessarily on block 49, but we've spoken repeatedly in this commission about marketing and preferences and wherever we can get clarity

is better especially since now the certificate of preference program is technically under the mayor's office of housing which is why you lovely women are standing before us. so, but it's very vague in here how the certificate of preference program coincides with the marketing opportunities for block 49. in fact, it actually says the agency, us, are supposed to do things without certificate of preference marketing. but it's not our program any more. two things. one, [speaker not understood]. and the other thing is i would just be very careful about lumping programs in together

because, you know, the certificate of preference program has a long history with redevelopment projects. i know ellis act has come up in the news a lot lately, but that's a different story. so, i just want to make sure that there is taylored outreach to the different populations and it's not all sort of together ~. >> absolutely, absolutely understood. let me make that very clear. the certificate of preference program still and will, as long as it's in existence, have the top preference and priority and that is the only preference program that we have that -- where the developer is required to reach out to those or is required. so, with the ellis act housing, there is no requirement to reach out to people who have been evicted because of the ellis act. the requirement, the cop program certificate holders still have -- there's three units in a development that are

available and three certificate of preference folks want those three units, they're going to the certificate of preference -- >> okay. sorry to keep everyone -- >> no, okay. >> just the last thing i would say is on the digital methods of reaching out. i know that's what the mayor's office of housing is doing in terms of building the portal and presumably it will be done before the block 49 lottery july 2015. >> yes. >> but i would love to see something about how digital outreach will be done in the dda, not making it necessarily a developer requirement, but every other method of outreach is prescribed, specifically called out like what newspapers you're going to reach out through, what neighborhoods. i would just like that mentioned in the same way that i would like the clarification of the connection between the developer arrow down to the mayor's office of housing for the certificate of preference program.

so; i don't know, in terms of a vote today, i'm looking at executive director. i don't know that what i'm talking about constitutes a change of the agreement itself what the developer is agreeing to. so, i don't know if that could be added as recitals or if we need to adjust the agreement. i don't want to necessarily have that whole approval because there are ongoing questions about how that's supposed to happen. so, i don't know, i'll leave that question to you. >> i think we can clarify the documents speak what you said on the record and go back and clarify the vertical lease disposition development agreement as between oci and am cal, ycd. we can also -- the ground lease will come before you and we can make sure that we vetted those for the ground lease, which would have more detail on the marketing. just the key terms were provided for in the option to ground lesion, the payment terms, the regulatory restrictions, but the full-blown negotiation and spelling out of what actually

happens in the marketing plan is really in the ground lease that will come before you very shortly ~. >> that's why i was thinking if it was recital -- first of all recitals and also there are a couple kolaes in here i need you to clarify, also make sure, for example, certificate of preference program is the authority of the agency, something to that effect and it's not really true any more. so, i want to -- i mean we can look at it later but i don't again what i'm saying here needs to prevent a vote on the document, but i think there are some changes that probably need to be made, some adjustments. any other questions or comments? from anyone? commissioner ellington. i'm sorry, i thought you were looking at me. [speaker not understood]. >> i move that. >> okay, thank you very much. is there a second? >> second. >> thank you very much. madam secretary, please call the roll. >> commission members please announce your vote when i call your name.

commissioner ellington? >> aye. >> commissioner is absent. commissioner sing? >> [speaker not understood]. >> the vote is 4 ayes and one abseptember. >> thank you very much. please call the next item. >> the next item of business is item 5d, update on the draft recognized obligation payment schedule for july 1, 2014 to december 31, 2014 (rops 14-15a). discussion. madam director. >> thank you. good afternoon to the member of the public. thank you for continuing to join us. commissioners. the rops is due, the oversight board will consider this on monday. the final date by which the successor agencies need to turn this in is about a week later in march, but due to the schedule the oversight board meeting, we will do our final mailing to the oversight board tomorrow. since you've last been updated

on the rops, things have come out through the workshop, through the oversight board, and other dialogue with stakeholders as well as other city departments that might be implementers of item on the rops. and there are a couple of items that were left off and then a couple of new changes that we'd like to present to you for your feedback. so, with that, [speaker not understood], deputy director of ocii will present those changes. >> thank you, director. good afternoon, commissioner johnson -- president johnson and fellow commissioners. again, sally orth, deputy director and i have a brief presentation to update you on some changes we've made, some of which are as a result of new information we received from the department of finance and that sort of i patctiontion how we -- the framework we think about what to reflect on the rops. ~ impacts i'm going to go over some instruction they've given us on how to accrue expenditures to various routes, and further

detail how we should be thinking about the use of any reserves we've had. since we had the workshop with you on february 10th, we have also added some excess bond proceeds lines. i'll go over those details in proposed uses. show you our current totals and where we are and go over why certain funding source totals have changed, what sort of driving those changes and again go over our next steps. so, we had a conversation with our analyst at doss last week who provided some additional insight on how we should be accruing expenditures. since the beginning of the lapse, this has long been a question that i know successor agencies and various staff at dos has struggled with the rops on a cash basis or accrual basis. we have gotten a variety of answers over the course of doing the rops. our current analyst, though, feels that it's sort of an in

between cash and accrual basis and is directed us to do the following ~ has. so, basically, any payments that are made after the calendar end date of a rops period, but before you next submit to the department of finance to true up that rops period can be accrued back to that initial rops period. so, i have an example that hopefully will make it easier to understand. for example, we're in rops 13 b which goes from january to june. but let's say you actually made the expenditure related to that item in september. what dos is telling us there is no need to show that again on rops 14, 15 a spending activity. you can treat that as if it was rops 14 b. graphickically, rops 13 14 b [speaker not understood]. we tended to think $80 spent

come july 1st needed to be under [speaker not understood] to capture all our activity. now what they're saying is, well, you have up until october 1st is the next reporting due date with dos. that's when we'll do the rops 1415 b true up report, the prior period adjustment and cash balances report in the fall rops submittal. so, really the january up to that point of when you report can be -- can be counted as the rops 13 14 period. we can accrue expenditures to that. there is no need to continue to roll those forward on rops. clean 14, 15 a makes that more streamlined and we can also report those as fully expended and there's no cash left over to then true up again. the other instructions they gave us were about reserves. so, we had already understood that the reserves column was meant for, you know, reserves you might have to meet debt service payments and then retain balances from your due

diligence reviews. in particular, there were two main buckets. the balances that were approved for restricted funds, bond proceeds, federal state grants, developer fees that were restricted for certain purpose. we also had approval to retain certain balances of unrestricted funds but were needed for an enforceable obligation. for instance, we had an approval to retain balances for alice griffith for mexican museum, african-american museum of diaspora. there were balances retained for rops 2 and 3 at the time due diligence reviews were done. what dos has said they clarified, if you have any of those balances left, you need to show that on rops 1415 a. if it's restricted or needed for enforable obligation [speaker not understood]. they instructed us if you have any money left you said you needed to hang onto for rops 2 and 3, you have the next rops

period to get that out the door. we tried to incorporate that. and then the other thing they clarified is then if you had received rptts in a rops period and you encumbered that to a contract in that same rops period, how do you show that on rops 1415 a? and they did say, well, again, if the expenditure is happening after this now longer accrual period, they did want to sort of see that activity in reserves. so, even though you will have previously reported that amount as expended because you've encumbered it to a contract, it's no longer available to be redistributed anywhere, they do sort of want to see the spending activity to show up in the reserves column. so, it's a bit of a shift on how we were thinking about the reserve column and what we rolled forward and didn't. so, that's sort of driven some changes in our rops.

as i mentioned, we had new item as well. we have excess bond proceeds as well. you recall we can use excess bond proceeds now that we have a finding of completion that's one of the things we're allowed to do. if you have bond proceeds not needed for enforceable obligation you can spend it as long as it's consistent with the original bond covenants. what we have in hand on the nonhousing side, in particular tax exempt born proceeds which have their own other set of restrictions and limitations, they need to pass the public use and private activity test. they're best suited for what i call bricks and mortar hard construction uses. so, we would need to spend those consistent with those restrictionses. you may recall on rops 13 14 b, we have two excess bond proceeds lines. we have 785,000 for the bayview opera house plaza construction work with mta and 450,000 with the mayor's office of housing and community development for their model block streetscape improvement program in bayview hunters point. and we expect that those contracts will then come before

you this spring. so, we put them on the rops for the overall spending authority but then there is a process to actually enter into agreement and come before you to fulfill that agreement. so, we have about 1.1 million remaining in nonhousing tax exempt bond proceeds that we are proposing to put on [speaker not understood] to get that expenditure authority. we're proposing a brood range of uses after conversations with various city departments that range from capital planning program, the office of economic and work force development, the invest in neighborhoods program, and other city stakeholders ~. and, so, the ideas that this provides us some flexibility to then go forth and continue to have those conversations and so when we come before you with the actual contract, it will be for a defined scope of work. but this gives an idea of possible uses. in the south of market area

there's 5 $5 91,000 remaining. what we're proposing this could be for streetscape, pedestrian safety, open space or alley way improvements. in general, these are sort of unfinished business that the agency had. these are things we would have done had we not been dissolved, but we can't. and, so, it would be great to then have these excess bond proceeds go to the appropriate city department to at least continue that work. in western addition, $83,000 remaining, potential uses can include some facade improvement or community center or cultural center improvements or repairs. it bayview hunters point there is another 34,000 remaining on rops 13 14 b and those could go for streetscape, facade improvements, pro tension improvements to the southeast health center. that is a broad category. we would further refine that to the broad scope of work and come before you for the rops 13 14 a period. so, in