golab? >> mm-hm. >> is he here, anybody? >> they are not. the project today is affordable only so the block six project was the combined project with golab but this project is being fully developed by mercy housing . >> have they done any project with us before? >> golab, i don't believe so. block six and seven was the first project, the first rfp that was issued prior to dissolution and that was awarded to the team golab and mercy. they're based out of chicago, although they're fully compliant with our local hiring professional services and hiring goals. >> okay.

>> commissioner mondejar. >> i'd like to hear from mercy housing housing, , do you have any comments? >> good afternoon commissioners, i'm barbara walker with mercy housing. i'd like to tell you we're thrilled to be here before you on transbay. our transbay block six development as elizabeth mentioned is well under construction, scheduled for completion next fall and as soon as that one's finished we hope to start on block seven so i would be happy to answer any questions you might have of mercy that might help you in your decision making. thank you. >> thank you. >> thank you. >> i just had a small question, just one out of curiosity because i don't recall seeing

one of our projects with a daycare center. is this -- are there others with daycare centers that we have under construction? >> there are family daycare centers. actually the mission bay project on fourth street has a family daycare center. previously -- perhaps -- i think this is the first one that's come before you with a -- oh -- before this particular commission, but in the history of the former redevelopment agency in mission bay, commons had a daycare center. we will be programming for a future rfp at mission bay, a daycare center, but this is the first one in transbay. >> i see. yeah, it makes a lot of sense and i like the reference that it would be open to children -- is it the neighborhood or is it -- or for the residents. >> child care center.

>> yeah, who would be eligible? >> we expect it to be a mix and we expect half of the spots to be subsidized. mercy's in the process of selecting a provider for that daycare center so the next time we're before you we'll have that info for you. >> great, excellent. >> would you care to comment on your selection process from mercy housing. , the process that might be underway. >> yeah, we actually worked with city agencies to come up with an rfq so that we could make the opportunity available to all the daycare providers in the city and so we issued that rfq and i think i may need sharon's help, but i think we got quite a broad response. i think we had at least four daycare providers responds and we're in the process of making

the review and selection. >> excellent. >> thanks. >> any other questions? the only comment that i would make is that i see that the developer has achieved a 98.8% sbe participation for services and that the 98% are san francisco based sbes. that's amazing. thank you. no more questions? do i hear a motion? >> i just want to know about the babysitting job, what do you call that? child care senor. how much do you charge per child? do you have any idea? center.

how much do you charge per child? do you have any idea? >> we don't know yet. that will depend on how many slots they can bring in, but it is anticipated to be a blends of both subsidized an market rates so i don't know if that answers your question, but that's what we know so far. >> it's good enough for me. >> do you happen to know what market rate is? i don't want to venture because my children are no longer little, but it was very expensive. >> i actually don't know, but i think it is quite expensive. >> so when you say subsidized, what does that exactly mean? >> i will have sharon -- >> i assume it's more

expensive, but how does it work. >> elizabeth and i have learned a lot about child care this past few months. so based on the responses -- again, as barbara indicated we worked with city staff, the department of early childhood education and representative from the first five program in san francisco and they helped us develop an rfq. the agencies rfp had identified that centers should serve 50% subsidized and 50% market rate so that was our starting point. so the child care providers responded to us on that basis of what we were trying to achieve and base on how big the center was. what we are assuming happens in order to get subsidy spots -- what i understand is when a family is received subsidy they qualify based on their income and they pay a very either

sliding scale or pretty minimal am so i'm not sure what that minimum amount is, but i understand it's very limited, very small amount, or a sliding scale based on what they can afford based on their means daks. and the subsidies are deferred by the first five program in san francisco. they're the ones that control the amount of subsidy and what subsidy goes to which center. >> and, you know, in terms of what the market rate slots will be the market rate slots. the firms the child care providers provided to us are the financial analysis and we received thoiz questioned and we need to review those and it will be part of our selection process to review those and it's not based on how many children they're serveing, but actually the amount of child care improvement based cost, they need to finance because the tenant improvements of the child care space are not included in our budget.

. they need to finance those. >> the provider will develop the space. >> they'll develop the tenant improvement space. >> mm-hm. >> so although they get the subsidies and there's all kiebdz of subsidies to build out the space also from the city available, there's some element of it they're going to have to finance and will be using the market rate spots essentially to -- the cost over there to operate. that's my limited understanding of what i learned about child care in the last -- >> i'm impressed that we're actually becoming children friendly and i hope the idea came from our commission, our office. thank you. >> it did. >> that's very good. especially if we're adding units and there's two, three bedroom units obviously for families with small children makes sense, people got to work, got to have the babies

taken care of. >> got to take care of the kids. nice that it's close to home. okay, so we have two -- >> do you have any list for the affordable housing? you have the list which you are going to -- who can come there? >> to lease up? we'll do a lottery process and then that's how we'll qualify people to move into the project. >> okay. >> this is our lottery. the executive director you know is going to ask those questions. lottery process according to marketing protocols and with our own possible prequalified

list of marketers. >> yeah, so actually jeff white, our housing program mechanicer, we were discussing that very recently and can shed some light on that. >> yes, we're making progress. there is an rfp that's got on element that's access for housing so we're going to be hopefully creating a panel that will result in organizations that will provide the early rental readiness and homeowner ship readiness programs that we are hoping to reach a lot of cop holders very on so we anticipate connecting the doech developers with those providers just after construction starts because that will be a long period of time so that when the lottery comes along the search

will be more qualified to get a unit either rental unit or homeowner ship unit. >> and to that i'd like to add, we also expect through that rfp process, through that panel to be able to get a diverse group of organizations that could market to the diverse communities of the city in san francisco to provide the services that mr. white just described. >> all right, excellent.

>> the vote is three is. >> motion passes. >> next item please. >> thank you. >> thank you. >> the next order of business is item 5i amending ocii's debt policy to reflect redevelopment dissolution law, ocii's responsibilities for community facility district debt and

federal disclosure requirements for issuers of public debt. >> commissioners, the last time we amended our debt policy was well over a decade ago. we have before you a proposed amendment to our debt policy to really reflect the state of where things are today, so with that, i'd like to ask -- looks like john, our senior financial analyst, to walk you through the substance of the proposed amendment

post issuance debt is expandsed to include cfd bonds, follow fcc guidance and to impend the city's disclosure policy appendixes as best practices model to be applied as appropriate. current ocii practice is to have secondary market tables prepared by a fiscal consultant and we've adopted that formally in this policy. the swap derivative policy, which was amended to the 2004 policy was deleted. this revised policy has been reviewed and commented on by the san francisco controllers office of public finance, by jones hall, our current bod counsel, and pfm, our current financial advisor. this concludes my presentation. thank you. >> thank you.

any speaker cards? >> no speaker cards . >> very fascinating subject the public does not want to comment on. i mean that, sincerely. do we have any comments or questions by commissioners? seems pretty straightforward. >> i just want to know what is the difference between previous policy and now? >> do you know? >> i'm sorry, could you repeat that? >> yeah, i said what is the difference between the previous policy and this policy? what are the changes? >> well, basically that was the list i recited, those are all changes.

some are minor, but fund emptily we've changed it to accommodate dissolution law, first of all. previous policy did not mention cfd issuance so we've included that because cfd issuance is governed by our local goals an policies and that's what governed it in the past but we've tidied this up. in the past we have used a fiscal consultant to prepare the tables if used in our secondary market disclosure just as the fiscal consultant prepares a report for bonds offerings. this is considered best practice and gives us -- it's more -- holds more credibility with investors and rating agencies to have a third-party

prepare those crucial tables regarding the revenues that support the bonds. and as i mentioned the swap derivative policy is dropped as we've never used it and we don't anticipate circumstance where we would. few other. >> thank you. >> you're welcome. >> okay. i don't have any questions. do i have a motion? >> yeah, i move that. >> i'll second. >> commissioner singh has moved and commissioner mondejar has seconded. can you please call the roll? >> please announce your vote. >> mondejar. >> yes. >> singh. >> yes. >> rosales. >> yes. >> the vote is three is. >> next item. >> item 5j amending the office

of communicative respite and infrastructure investment pool and to update references to state regulation. discussion and action resolution number 732014. madam director. >> commissioners, this is another important fiscal update or financially related update, a housekeeping matter, but nonetheless still important to update and amend our existing investment policy that's been on the books for some time as well, so with that i'd like to ask leo, the deputy director for finance and administration to walk you through the proposed changes to our investment policy. >> i'm the director of finance administration. as the director mentioned our previous policy dates back a long time to 1989 so it is part

of our practices that we review these policies and update them to reflect current needs and legislation. this one is very minor changes and the impact -- the object -- our first objective is safety, second is liquidity, that we have cash when we need it and third is returned. we're not in the business of playing the markets. we're here to keep the public money safe and available for our work. since dissolution we've been using the treasurer's office as allowed by state law. it's been very advantageous for us. prior to dissolution most of our money we were holding on hand was with the state local funds which gives us a lower yield. they still are able to manage things -- i'm not sure exactly

why it's so much better, but as i mentioned in the memo, the state has about a quarter of a for members of the pool. so our new investment policy rk niezs that arrangement. it was always allowed in the past, but this speckly recognizes it. doesn't require it, but recognizes the arrangement and authorizes the director to enter into that arrangement. if-in the past there was a specific list of authorized states investments that came from the govment code. government code. we've taken out that list. now we just reference the government code and say we can only invest in things the government authorizes local governments to inves in. vest in. in terms of where we are now with our money, almost all is in the treasurer's pool, except

for a few accounts we're required to keep separate l. there's bonds reserves that are with bond trustees. we have a few other cases where there's escrow for certain projects where the agreement required an escrow bank account and we have a few operation bank accounts which will dwindle with time. otherwise the rest of our funds are being held by the treasurer and that has been working very well for us. the treasurer's office has reviewed and concurred with this policy. that's the end of my presentation. happy to answer any questions. >> do we have any speaker cards? >> we have no speaker cards. >> okay. don't have members of the public that i can identify present other than staff. does the commission -- >> commissioner mondejar has a

clarifying question. >> let me clarify. our funds will be separate, will be with the treasurer, but we have a separate restricted fund? is that how it works? >> no. our funds are with the treasurer's pool fund, which means they are currently investing about $5 billion on behalf of the city and county and school district and community college district and other members of the pool. they can do that much more efficiently than we can. what we have is an accounting system just like with your bank. they're like our bank and we have accounts with them that's the famous accounting system that we transitioned to after dissolution. it's actually facilitates things greatly because many of our ordinary checks that we produce everyday are produced from these funds out of the accounting system. it allows us a line of credit because when we have the expenditure authority in our system we can spend these funds

and it just recognizes that we have that authority, we promise to have the cash behind it and automatically any of our accounts without positive amounts in that earn the interest. the controllers office runs that distribution process. any a count that's negative, that particular account just gets the same interest rate on a negative basis, charged interest at that rate. now, on net we still have quite a lot of money sitting with the treasurer including some old funds that we have on hand at any time. >> commissioner mondejar, it may be a -- as i understand you, you wanted -- what about other funds not with the treasury. there are still some funds that are with external bank accounts, some that are mandated and required due to the bond ventures with bond trustees required to hold that and we get reports that we

reconcile with them and then some, perhaps escrow accounts that are required by various development agreements, typically for our affordable housing projects, funds are dispersed pursuant to conditions in the development agreement for the loan for various affordable housing projects and then as john indicated, things such as a retail op roigs, it's just a lot of work to have people with credit cards, checks for south beach harbor and the two garages to work with the treasurer's office so those continue to be in separateback bank accounts. >> we keep very close track of our accounts and they are audited at the end of each year. >> okay. commissioner singh. >> how much money do we have in

the funds, like, we have most of the money in the treasury? i mean, money market funds or what kind of -- where we keep all the money? >> well, as i mentioned we have quite a fair amount of bond research money required by our bonds and that's in the tens of millions of dollars in u.s. bank and bank of new york that manage those. and then with the treasurer right now we have -- it's in the tens of millions of dollars. i didn't come with that exact number right now, but that includes some of the old housing bond proceeds that we haven't yet spent down down that are holding and not in escrow accounts. it includes the tax increment we've received. we have a lot less than we had at dissolution. i know at a certain point we

had about $300 million at the time of dissolution and we are spending that down on the projects we are charged to implement. we still have tens of millions on hand that we are trying to spends. >> [inaudible]. >> sorry? >> she shallly [inaudible]. >> yes. that's set up be the charter. >> who is the member of those committee? >> i think that by the charter it includes the controller, a couple members of the public that are appointed by the controller, the public utilities commission representative, the puc has the largest amount. the airport is also by charter, a member of that. >> do we have a list of those committee members. >> we can provide you that list in a follow up memorandum to the commission.

>> i just wanted to know. >> who signs their checks? >> who signs our checks right now? >> yeah. >> well, checks that go through the accounting system are signed by the controller so -- >> upon approval by the executive director and by you, right? >> well -- >> yes, there's an invoice approval process, there's a conformance process, but the check is cut by the treasurer and signed by the controller. even prior to this when it was wells fargo or bank of america, the executive for checks and balances, the executive director didn't sign the checks. it was always another signature required and separate deputies to make sure there was no potential conflict so it's part of a check and balance to have -- >> for other bank accounts we don't use checks anymore, we do wire transfers from those accounts and there's a very

limited number of people that can approve those wire transfers. usually it's me approving them, submitted by someone else, you can't submit and approve. >> who's our bank? >> who's our bank or banks? >> the treasurer has gone through a big rfp process. we've used wells fargo as our primary operational bank and we still have a couple of accounts that with are -- al wells fargo and our bonds, our major trustees are u.s. bank and bank of new york. >> i think the city has deposits in several banks. >> yeah, i think bank of america is the major. but i know -- i'm not sure where they are with their rfp. they do rfp and then change their relationship. >> how often do they issue an rfp? do you know? >> i don't know that for sure. i imagine every five years.

>> we can include that with the oversight members along with the frequency of the rfp in a brief memo. >> i have a, again, a question of curiosity. i saw a reference to a commercial paper program. do we have one? >> the city does. the city has a major commercial paper program. we do not. we issue long term debt. >> yeah. >> we don't issue paper -- >> i just saw the reference there in the policy for commercial paper. >> i don't think the department of finance would [inaudible] get too creative -- >> the reason i know that is because the airport, especially after september 11, commercial paper program was very useful, but that was very different -- >> yeah, we will be exploring financing options in the future if we are unable to sell bonds for our major projects and transbay and we don't have enough money as a pay as