you this show you how the cost for the prior year and not just the six months of the rops but what we're projecting at this time and we may refine the numbers when we bring the actual budget to you later but this shows a small decline in the bond proceeds. that decline in the other amount of $400,000 is related to our budgeting of how much transbay developer fees we have to support. we had funds coming in that we budgeted fully last year. this year we're spreading money over the time period we're working on those projects so we're assuming somewhat less than that in the other funds compensated for an increase property tax request and you see the addition of the 537 separated for the pension contribution for the unfunded liability for line seven. when you look at the total together it's about 600,000 increase

from the prior here, and we're allowing a small amount of increase for retiree health which is the other agency wide costs i am showing here. we spend a million dollars a year to the commitment for the retirees that we give the support for the health insurance. this is another look at the admin costs. down by the more detailed break out of really the administrative support costs. you can see the salaries increasing by 7.7% partly due to coalace the pension contributions and as i mentioned one additional position and the filling of vacancies. retiree medical insurance. we're allowing for a slight increase in that. other things are fairly constant. we are allowing for a slight increase in rent. we don't

have that charge before you from the city. we've had savings in insurance costs and we're allowing for a small increase in our it costs. that maybe related to refreshing our server and possibly using -- we're still negotiating with the city over we will virtualize our servers with the city or do the work ourselves and we are trying to build in sufficient to maintain the it infrastructure. turning to debt service there's 37 million total of which 25 million is a property tax which i mentioned before. it includes the full years debt service on the new refunding bonds and there's also the non property tax items as we still have the hotel tax bond that is money passed through from the city and we also have south

beach harbor bond that we are getting funds from revenues. we are also include r including in here allowance for this if we can sell bonds on mission bay and we built that into the rops authority and we are building a team for that and bonds and new issuances there. you will see that soon coming before you. yes, as i mentioned the other is -- oh yes, a major part of the 13 million is to [inaudible] tax exempt debt to build jessie's square garage and other funds paying off that debt. for asset management i'm going to turn over to christine our real estate manager. >> good afternoon commissioners. i am the development service manager.

i'm going to highlight the major rops item related to asset management and yes yerba buena and we are working with these areas. we anticipate that these agreements will be terminated in the near future. continuing payments are included on the rops just in case there are delays in the transfer. next shore view park. ocii has obligations of the park until we can transfer it to the city. accordingly rops 15 and 16a includes funds for property management and 1.5 million for capital improvements and deferred maintenance. next the western edition. as you know ocii has continued obligations as a property owner of portions

of the fillmore heritage center. accordingly this rops include $200000 for payments to the operator of the fillmore heritage center garage. $300,000 for operating deficits and capital reserves for the garage. i would like to point out this amount is higher than what's been shown in the past on previous rops given the closure of the largest commercial tenant in the center. there is $90,000 for common maintenance charges for the parcel. again this was increased as a result of the closure of the commercial tenant. next is disposition costs. the rops include 125,000 for costs associated with the ongoing management and ultimately the disposition of ocii's assets assuming that [inaudible] approves the long range property management plan on or before this rops include

and include all of the other costs associated with the disposition process. next is yerba biewn on gardens and as you know we have obligations as a property owner of the jessie square garage and the mexican museum site. both of these properties will be transferred to the developer of the 706 mission mexican museum project under an agreement approved by the commission and the oversight board and (inaudible) in 2013. until that happens which is hopefully this summer ocii must pay costs associated with the jessie square garage. accordingly the rops shows 23.7 million for the garage which represents reimbursements to the operator for expenses, parking taxes to the city and pay off of accumulated debt service on the bonds and

includes 1.8 million for over space and fees from the mexican museum project. now on to yerba buena gardens. as you know we have obligations as a property owner until transfer to the city. the rops includes the following items. $2 million for property management including costs and management firm and legal services and payments to community benefits district. 2.1 million for culture operations and programming which includes the use of restricted lease revenues to pay ongoing payments for the center of the arts and the childrens' creativity museum and yerba buena events and includes 3.2 million for capital improvements and with they will turn it back over to leo. >> okay. you have been approving the grant agreements for excess bond proceeds but not sure if it will dispersed prior

to july 1 so given the state's requirement that we put on the rops what we're dispersing we carried forward these bond proceed items. 384 to 388. some other changes are a few minor increases in hunters point shipyard. they're hoping to spend the full amount on hand for the legacy foundation. some other updated estimates and finally as i mentioned the $900,000 for the [inaudible] ramp and the first stage of the project is not starting until 2016 so we have taken off that payment authority from this particular rops. so the next steps we're going to prepare the other background worksheet for the rops for the oversight board, the cash balances and prior adjustment work sheets. we can report back to you after

that is prepared. the oversight is on the 23rd and with that we will submit to the department of finance and the pns is due by april 10 and in the last rops we had no issues to confer on but if we did we have five days to do that and meet and confer and the final determination. we will be back here with the budget our actual spending authority to spend our money which you will have a chance to approve in april and that will go forward to the board of supervisors on june 1 as a separate action from the rest of the city budget since we're separate but with the same timing as the june 1 departments so we will have further chance to discuss it then. >> great. thank you. do we have any speaker cards? >> i have one speaker card mr. washington. >> i didn't know that was you in back of me. listen case in point may i show you all this

here? can you show this on the board here? hold my time. can i show this since you say i don't know what is going on in western edition. right here you -- you act like you don't know who is in control. that's the meeting tonight with the hoo, the association upstairs. they're meeting in the screen room in which i don't know if you know the lox was changed friday and i will talk about that in public comment and christina i was trying to get a hold of her for two weeks and i thought she was missing in action and they are saying the redevelopment update and i guess you're going to be there tonight because we're going to be there tonight. we want to know who changed the locks on the door that we used the room for six months. that's illegal. you're an attorney. you're an attorney. you're liable. if i had stuff in there and it's

gone and it's the first time you heard you say anything about the western edition, the garage, so i'm going to wait until public comment to see what you got to say and your director got to say because i am adamant and appalled at things going on here and i bet you sit up there and don't know what western edition means and we have the garage. i am employed by the garage. i have been there almost a year. yes, because of my advocacy coming up here and contact with the new people that took over. i'm the only african-american in western edition hooked up to the fillmore heritage. michael johnson has the flu. now people upstairs think they control stuff up there. who is in control? is it you all? the hoa or do we need to take it to the streets? i am asking you all. i am make sure i get some answers today about the management. this is right in

front of you all. it's either the hoa or is it the oci or is it ed lee? who is in control? who can i ask -- i have two minutes. who can i ask who is control in the western edition? let's zero it down to the heritage center. i know i get paid for cleaning their garbage, emptying your garbage, checking your lights. yeah ace washington. i have been doing that for eight months and i just signed another year contract. i am not just there to clean the toilets and i am there to learn the business because it should have been our garage. the cars are ours and the garage belongs to us. you are talking about you're responsible to the state. that's why i want the federal government to come in and i reached the plateau in the

city. i'm going to by pass going to see governor brown and this is the fourth time around and if he doesn't know what is going down. the black population is going down and you have michael johnson and took the money and he's gone [inaudible] my question is -- the timer. i want to know when my time is up because i don't want you calling the sheriffs. who is in control? who gave the authority? who gave the authority to change the locks first thing friday morning after we have been there six months? who has the authority? but damn it. we're going to find out today. i will go to jail today because the people upstairs don't have a right to use our screening room. do they? we're going to find out today. i'm coming to you all and the management report and rda -- i still call you redevelopment like i do. they're going to give an update what the hell is

going on and i hope somebody is there. my name is ace. i am on the case. i am glad i came down today and it will show i'm not hot air. it's to show you all who is in control there? who changed the locks on us? >> thank you mr. washington. do we have any other speaker cards? >> we do not. >> okay. so it's a workshop so commissioners -- yeah. i don't know if we can -- our screens are kind of jittery. do any of the commissioners have a question or a comment? commissioner singh, yes? >> i just want to know transbay workshop number one. [inaudible] $50,000 to [inaudible], the last page. >> i'm sorry which item are

you referencing? >> changes since the first workshop. >> through the chair -- >> [inaudible] >> commissioner singh is referring to page 15, item 26 on the rops and 250 to 29500. >> we have 255,000 in hand for the community benefit program. >> >> i thought they thought that the pace that 250,000 could be dispersed during the period but now the expectation they would like to allow for have the spending authority to disperse the full amount if we are able to disperse it during this time period and it's money that we have on hand. >> through the commission, commissioner singh these are expenditures that would be brought forth for the

consideration and recommendation. >> thank you. >> just as a clarification because maybe i can't remember the hunters point shipyard and legacy and that the community that community benefits are made -- funded? >> the hunters point shipyard phase one disposition development agreement provides for a quasi public entity and that is separate and apart from -- that's an alliance for district 10 where funds run through the san francisco foundation whereas we oci nor the commission has direct purview but does on these funds with the disposition agreement so with the approval of the major phase and other milestones the housing under way lenar made a series of payments. they restructured it and instead of back ended profit sharing model

a more time certain payment requirement that would then be used for the benefit of the bayview hunters point community. things like education, jobs, housing, a broad scope of eligible programs under the phase 1dda. >> okay. is there any other questions before we ask questions about the western edition? commissioner bustos snow? i understand the presentation and it's a workshop but i just want clarification on the western edition items. they obviously stand out because we're iepting more expenses,

shouldering more expenses on our part. i think we need to have -- maybe this is not the right time because this is the rops, but at some point and perhaps this is kind dovetails into we perhaps need to think about that meeting in the western edition because i am actually very concerned about everything that i am hearing that we're losing possible control over the situation in terms of costs, you know, the cost situation. i don't hear there is a end in sight or a mitigation plan. can you answer some of the concerns? >> i can try to answer some of the questions. you're right some of this is not a rops discussion but i can tell you where we're at today. as you know the space went dark in early january and we were notified shortly thereafter that the utilities had been shut off and the alarm system should be shut off. work withing with

the mayor's office and the city was able to get power restored back to the facility and the alarm system reactivated, and then as mr. washington alluded to late last week we were notified that there were some unauthorized use of the property. not sure how secure the space was, so again the building was recued. the commercial space was recued under our authority on the ground lease, so those are the steps that either oci or the city has taken to secure the space and make sure that the life safety system was still operating. in the meantime both agencies are working together to look at what the legal options are both under the ground lease that we have and the loan agreement that the city has,

and again the city's loan is secured against the commercial parcel so we're working closely with them to determine what our legal options are for moving forward. it could be that the ground lease is terminated, that the city takes over the ground lease and steps into the shoes of the operator so there are options we're looking at but in the meantime we are taking steps again because we're liable to make sure that the space is secure and the life safety system is fully functioning. >> is mr. johnson talking to us or anybody? >> yes. we have been in communication with him. when the utilities went off and the locks and we have been in communication with him. he is cooperating with us but again we had to get all of this established in the city's name or oci's name. >> okay. >> i know that western edition

is not our project anymore. >> correct. >> there is one building on fillmore and dove street on the corner. what is happening in that building, brick building? >> [inaudible] >> is that the muni sub station? >> yeah. >> to my knowledge nothing has happened to it after transferring it back to the city but i know the city is looking at ways of to program that space but to my knowledge nothing has happened yet since it was transferred back. >> since western edition is not anymore but still we can help the western edition anyway? >> i think commissioner singh if i may. unfortunately since the western edition both a1 and a2 project areas were finished i think you're right. we have been in a mode of partnering

with our city colleagues or third parties to transition protecting our assets whether they be loans or physical pieces of property to make sure they're in good standing and care and certainly we have been working with our city colleagues and the district supervisor to help strategize how to historically what the redevelopment agency has done what did oci do you but it's in the hands and where the corridor goes next is a decision for the city. i think you saw at our last meeting where we could unspented bond proceeds in the western edition were done [inaudible] and authorized the building of and transferred to the city in 08 08-09 and i think where we can but the role because of disillusion is very limited. we can't initiate new projects,

but more maintain and transition is really our role right now. >> which city departments would be the agency or is there one? >> i think there are multiple agencies. for example the muni sub station that commissioner singh inquired about is transferred to the city's department of real estate, but with sort of project management administration flowing through the ofice of economic and workforce development. it's really the multiple arms of the city whether it be department of real estate, oewd -- >> dpw. >> public works, yes the fillmore bridge and the blue bridge authorized in those improvements. it's really the multiple jurisdictions within the city. it's not a one stop shop like we were. >> invest in neighborhoods. you heard staff talk about the mayor's investment in neighborhoods initiative. in

the district supervisor was looking at land use controls as well to ensure the liviness of the district and appropriate entertainment uses. mayor's office of housing even has a jurisdiction. we transferred assets to them and regulatory restrictions to them. >> okay. i guess my only -- i don't know that it's appropriate to mention it here but at some point if -- maybe i can tie it to our losses. one way to stem our losses seems to engage the city when we're doing but the community. it would be great to have like if you will a proposal spring from the community about some of the issues and it's not just this location. i haven't gone down fillmore street in a little bit but based on what we

heard i am assuming there are jazz clubs and other establishments -- jazz clubs i think most of them are closed. >> [inaudible] >> yeah it's an investment. >> yeah, and we're working with oewd on that aspect. >> is there any timeline when we might know about where the direction is headed? or could we help in some fashion. >> i think at this point the focus is on the legal options and [inaudible] >> yeah. >> and as soon as we have that path figured out we will look how is this [inaudible] and what are the options are. >> okay. yeah that's true. you got to have your strategies in place, absolutely. okay. okay. so there's no action on this item. madam secretary please call the next item. >> the next order of business

is item 6, public comment on non agenda items. i have one speaker card for mr. ace washington. >> [inaudible] when get older say "papa, you're the only one up there with public testimony? what were you doing with the white hat on? grandson, i am faking it until i make it. with this discussion i feel much better. much better. you will see a different ace come back to you. at least you know about it my work is done and the secretary did a wonderful job. i couldn't write that script myself. it's no mystery. all you need to do is check your history. i want to thank you all because you feel the anger in my voice. you have seen the stuff i have to go through the sheriffs and you know it's not me. i wouldn't hurt a fly. i

am not going to lie if it's on my nose i would go like that but listen i appreciate what you're doing. now i can go back to my community and i think they're listening to us now. you are because the record shows that. now, my only question is and i will ask her on the way out but you still haven't told me yet but ultimately you call the department heads. it's the city. it doesn't take a rocket scientific to know. it's room 200. i'm not faulting you all. ed lee has to do something. i have known him longer than you all. and i don't care if it's willie brown. i am not scared of willie brown. i am noted of governor brown. i would like to see obama and come back to the community instead of raising money. he's a community organizer in chicago and come back and look at the people

that are trying to help us instead of getting thousands of dollars from the high rich people. i want to say in closing i am grateful because you all hear what is going on. i am tickled black -- not pink tickled black right now. thank you very much. >> you're welcome. next item please. >> the next order of business is item 7 report of the chair. >> i don't have a report. >> okay. the next order of business is item 8 report of the executive director. madam director. >> commissioners i just have one announcement last tuesday transbay block nine which is the 500 plus unit development along folsom street with the developers and 20% affordable that is 109 units at 50% of median income. that transaction closed. i believe you saw that at your last meeting. you

authorized the schematic design and development in december and right on schedule as predicted and under performance we closed on the ninth and $43 million was transferred to the transbay joint bay authority for the transit center construction so it continues which is a good thing and we expect to bring more of those before you this year so congratulations to the staff. the staff is not here but i do see a number of folk who is are here. deputy director sally wurt, pam simms is a development specialists really carried a lot of the weight in that closing transaction. gwen and jeff whyte and even former agency staff that helped with that transaction so thank you to everybody for the hard work and the work and leadership of this commission so we're right on schedule. >> great. i think i need to ask are there speaker cards

regarding the executive director's report? >> none. >> okay. next item of business please. >> next is item 9 commission matters and issues. >> yes. do we have any matters? >> i want to give a hand. >> yes very good. thank you. okay. next item. >> the next order of business is item 10 closed session. there is none and the next order of business is item 11 adjournment. madam chair. >> yes the meeting is 5d -- adjourned at 230. [gavel]