budget cleared up we have our first working group two woodworks you heard the major project areas and today it the rest of the budget and to look at it one or more one more time as a package on may 5th then we'll submitted to is mayor's office and they'll submit is it in june with the rest of the department this is a separate document this is a resolution rather than an ordinance as it goes through to them and in fact they'll do two budgets like an interim budget so we'll have a budget to work on and simultaneously another budget document in case they have comments they approve in july so on june 15th a scheduled meeting from is board of

supervisors budget committee an opportunity for a second hearing they've not used that in the past in september as is director mentioned we'll be working on is second half of the year that gives us a change to have a second look at the budget by the oversight board and department of finance as long as that doesn't increase is budget it didn't need to go back to the board of supervisors but if it's increased a supplemental back to the board of supervisors. >> so i'm going to talk about the administration budget it table is in the memo i won't keep that on is screen it is on page actually table 4 in the budget extracts on page 9 if

you're looking at the attachment to the memo you can find the same table so is administration budget the total is $11.7 million that is modestly smaller an year 2013-2014 it includes about $4.85 million from the property tax and this is from the cost allowance it is not yet the ma'am, one could request we're trying to keep that controlled and is other property tax increments outside of our retirees that's for the retiree health insurance there is a new lump sum engine payment for the actuary capture for losses by

the cal system and they bill is systems to capture with the funding europe is $87,000 administrative budget is funded towards different cost centers like mission bay and is shipyard some of the fund may come from the bond procedures or other sources looking at the expenditure items the salary and benefit is $7.6 million a reduction from the prior year of $800,000 plus and is cola's you've approved in is labor agreement is a 3 and a half percent cola it is exactly the same for the units they're getting reap for is is real reason for

the reduction is not the cost savings with the tremendous administration costs to be fair and transparent is main reason for the reduction some of the staff we're doing work that the city work transferred to city departments includes is harbor we're assuming first of all there was is choice of employees to accept city status in n some cases we've talked about this this before are coming back and still doing our ocii work that is included if the salary and benefit budget in some cases employees are doing work their - in the case of harbor we're anticipating that very soon the interpretation of the leases you've approved we're awaiting is department of finance final

approval expect to happy before the fiscal year or soon thereafter and is employees have accepted city positions that will come out of our budget so that's 9.6 staff that moved from out of ocii budget and two helping staff that were doing work that transferred from eject to the city after dissolution that accepted city positions and that's helping to reduce our administrative budget so we have a reduction of 11.6 city staff it requests an addition of 5 ftes for ocii work 5 ftes and that's to help with the accelerate based work schedule that is anticipated for the fiscal year 2015-2016 another reduction in is salary and benefit budget is again sort

of technical the calpers the way it is funding for the first time ever you're seeing a reduction in the calpers from 18 to less it is not suddenly reducing is work but how they're doing is fund it is 9 and a half a lump sum which we report separately and finally there's a new another savings in terms of ocii administrative cost part of the labor agreement that is employees great agree to a supplemental contribution to the unless a member of the commission, the public, or staff so requests percent start at 21 percent and rising to 2 plus in october and in the next fiscal year more this is the

contemplation we're trying to make our compensation similar to the city and the city unions agreed to attribute more this is closer to matching that. >> other changes in the administrative budget we are budget with housing authority is 6 hundred reduced from the budget from the previous year i think that is larger due to understanding how much time was being spent that budget was larger than actually being built in this current year this is closer it the 6 hundred and plus thousand dollar is legal services that of which one hundred and 25 to the city attorney and one hundred 40 thousand is non-city attorney

work supporting is agency as a fy that's not our full amount it is over one million dollars but is one hundred 25 is for general questions that the agency has not bill able to a project the other professional budget is unchanged 2 hundred and 75 and there's what we lump together in other current expends 6 hundred and 60 thoits thousand dollars it close to what it was in 611 the major bullets includes insurance and software licensing all our e-mail and cop machines and employee training and oversight expenses information technology supplies we're bithd for the additional staff we're hoping to bring on and server

issues we're really to i trying to accommodate and other expenses i'll be happy to answer any questions at any time or the end of the presentation at our pleasure to look at specifically in the budget position there's a table i didn't reprint the whole table in the power point there is a big table in the memo attachment on page 13 shows did comparison and lists all our positions but in summary we're looking at is request for 45 ftes 45 permeation in that's a decrease but it is really to show it in an increase of six positions if

you take out the positions for transferring those out that's 40 and 45 the new positions reflect is accelerated work plan about 6 new rfps to be accomplished for affordable units this is a fast pace compared to our previous workload they include a deputy general council position one human resources administrative services manager we've used is city on those issues two new senior development specialists for supporting this work plan if you look at our administrative costs alone it is

the dilatation law states on what we can draw from property tax we're in is area and we estimate that if we requested a maximum that's $43 million this request is estimated at $3.3 million it may need to rise in the next we're using diminishing resources we are taxable bond balances that are primarily budget for the housing projects since this is not tax exempt money we have more flexibility we're using it towards is staffing work on is housing project $707,000 unless we have the opportunity to sell new bonds this is a diminishing

cost and one hundred$168,000 from a parking lot in transbay we'll need to stage for construction we estimate this is the last year for revenues we'll have to watch closely as we lose those and either may increase the property tax requests or look for other source of funds debt service is a table in the attachment on page 14 and some things to note it is a reduction in our debt is $6.8 million is due to the pay off of one of the major hotel bonds related to the moscone

center. >> we have one refunded hotel tax bond left that's why it shows it to pay that particular bond our tax allocation are increasing slithering because of the latest 2014 series for mission bay south so we're still at the payrolling $100 million a year for our debt service i want to talk about is budget controls your approving this what flexibility do we have what kinds of things to come back only what the agency can do to deal with contingencies you'll see this in the reduce in may those are the controls if so a project based project proipgsdz can be transferred within

projects and also, we make an estimate to how our staff costs will be allocated to costs we're allowed to change our staffing looked at costs allocations between budget all of this is within what we're approved within the fund we have available to monitor that oar we're proposing that appropriation funds in the budget we talked about last is last session that are related to the potential sale of new bonds provided we get the authority and approval to sell those bonds we're proposing we noting not spend that money until we get that it was implicit in the past but matching city language we have an approval that says don't

spend is money until you get it or a substitute fink becomes available then that could be spent we didn't include the cost of issuance for is bonds that is an expenditure we need the authority there's a wide variety in issuance we might have we proposed a general authorization that is self-appropriately whatever is needed you'll get a chance to approve it but this is just say that you can spend it from bond procedures a minor item related to bond interests our old bond fund that are adding interest to our budget we want to expand that as is same

purpose to the bond some other flexibility we're asking for as we did last year, we make an estimate open mission bay and is money going to the tangle we have regardless of dollars amount a surprise compared to our budget that results in extra increments this will go to the board of supervisors to spend anything extra we get there's a major item happening with the 706 mission we hope that will close soon related to the jessie square garage it will result in major payment to pay off the bond and transfer funds to the city we didn't put those

exact dollars amounts we're proposing this be authorized to expend those fund ina accordance with the agreement and finally this budget doesn't include funding our the jessie garage they're not going to be outdoors it stretches past july 1st ouch we still own the harbor or garage and this is general language we'll keep operating it and spending the revenue even though their not in our listed budget those are all the controls flexibility workplace is budget you'll see in more specific language in the next budget resolution so with that i am sorry to our real estate

manager to talk about the parts of the budget aspects. >> thank you. >> good afternoon, commissioners katrina 10 real estate and development manager i'm going to start off the presentation with a quick overview of the real estate division what we do essentially we're charged with the management of all the ociis existing assets and the seat includes accident management of ocii assets and all existing and expired project areas and for the disposition over time ocii long range property management plan it is anticipated by the end of the 2016 it is the management loan agreement and

leases and operating all the time he can as long as disposition title and escrow work i'll finger on is preservation outside is work it was included in the previous budget workshop first i'll start up with the yerba buena it inspired at the end of 20102010 so we're limited to assets that ocii own is mexican museum and yerba buena land and, of course, the yerba buena gardens yerba buena center plan for

2015-2016 primarily excludes is mexican museum and is mixed use and is paramount apartment and other existing agreement i'm sure you're aware of and as leo mentioned the purchase and sale for the mexican museum project was approved in 2013 staff anticipates that ocii mexican museum and garage will be transferred to the developer in 2015-2016 the purchase price of approximately $34 million will pay off city debt related to the construction of jessie gasping as you recall is developer will have a mexican museum a $5 million endowment 48 percent affordable housing and an ocii share is $55 million and open space contributes staff worked

will include the escrow document and is grant agreement that has a balance of approximately $7.8 million that is held for tenant improvements all staff and costs will be reinforced by is project manager next is the paramount apartment as you recall last fall the bouft by is thinking outside the box has part that of ocii will receive 4 annual payment of approximately $450,000 u thousand dollars we received is first last january that will be transferred to oc d finally a number of there are a

number of developer all the times including that the western hotel and is st. religious any staff time enclosing those agreements will be paid by is cost allowances i apologize it looks like the power point that got loaded is not the most current version so the packet any defer from i don't know if this is what is going on i'll speaking off one that is not going to match one here so next up is is yerba buena gardens i'm sure you're aware of the garden a ociis largest asset

spanning 2 and a half city blocks that includes cultural facilities and performance and recreational areas this asset will be transferred to the city ocii sports is garden capital expenditures using fund from generating projects w b g project is $12.2 million as you can see $8.2 million comes from the marriott and city and restaurant and other places and is developer from the st. regular us is balance will come from capital revenues. >> is $8.2 million will fund

the costs broken on the slide 2 hundred ocii 3 hundred 7 force precipitate management expenses and $4 million for grant to cultural operators like 75 thousand to the yerba buena arts and event 3 about the 3 to the yerba buena for the artists and other million dollars to is arts center we showing one hundred and 10 for legal and risk management services balance of $4 million to fund capital improvements to the garden those include open space improvements equipment replacement both the bowling and ice center for the art and security and fencing at children activity museum and is b and b

restaurant so next up is the western edition i'm sure you're aware of the project area inspired at the end of 2010 and now, one of asset management the largest property that ocii owned is the fillmore heritage center that hesitate ground level space commercial parcels for the fillmore are ftc and houses housing spaces and second restaurant on fillmore i'm sure you're aware of the edition which last year, it closed its doors for a number of reasons including the coloring non-payment of property tax and is maintenance charges ftc is

that in default with its lease agreement with ocii and hud section as well as the $7.5 million in the loan ocii and is mayor's office of housing and county development have been trying to resolve those in the meantime ocii has been paying the cam charges up to $15,000 a month the budget therefore includes one hundred and $80,000 to be paid from property tax increments is fillmore center garage has suffered from the garage it is run by pacific management agriculture with ocii under is agreement the operator is reinforced for operating costs that run about $35,000 a month or $415,000 a year is garage has

covered all the expenses but over the past few months the revenues have fallen even off to cover is garage diversities as well as capital revenues i'm sure you're aware of in the western edition ocii has a existing loan agreement over the years each of the bars has a difficulty making payments consistent with the terms of the loan agreement i know that ocii is working with the bars to restructure the loops finally ocii still has two activity agreement in the western edition mainly is remain 59 franklin street currently under construction and isgymnasium it was by is administrative cost

allowance as needed on the other project areas next up is rooiven beseech that inspires in 2081 because it is larger completed most of is activity a seat i'm sure you're aware of ocii and is port negotiated a memorandum of understanding that will terminate all leases and transfer is improvements to the port mou was approved on march third and the oversight board and submitted to nova the mou is upon approval by the states legislation and it will be germinated fy at relationship. >> ocii has one active owner

participation agreement left in the area which is for the development of 74 condominium unit over a warehouse space on townsend street it is underway and completion it expected this year any staff costs with is implementation of that agreement are reinforced by is pvrlg will and finally they manage district one that pays for additional landscaping on some of the open spaces staff work that includes managing the maintenance and managing the funds is covered by is assessment and that is boyish industrializing triangle that is an active project that spiders in 2030 we receive requests for land use and once is project we're currently working on a mixed use project at 4101 third

street that will likely be wrought before the commission is costs related are reinforced by public defender's. >> next is the south of market project area this project area expires in 2012 c us i has several loan agreement that were executed under the program those loan agreements are still needing staff time this work is paid for ocii mosaic active cost allowance next the shore view park and is hunters point area this fiscal year staff will extend $17 million ordinary person is shore park mor