i's. >> is next item is - commissioner singh as moved is there a second. >> second. >> commissioner bustos seconded that. >> commissioners commissioner mondejar poimg we're voting on is second one i have questions on is second one i thought we were only discussing the first resolution. >> it was open for both but it's fine if i think we - do we have to. >> well, it's been months ago and seconded i have a question on we had a discussion on this on the standard i want to make sure this is ones attachment 21 where was that - there are no

page numbers but second page of the attachment 21st page page the attachment 21st page page 2 the declaration of affordability 21 it's number one the second page under bmr units one .4 okay. mr. white you were ready okay. >> is size and finishes of the unit and i know there was a discussion that the bmr units have the same finishs or finish the size and so on

and is last line says current standard and i was wondering if we can add industry standard. >> yes. we can. >> we can. >> it is allegedable. >> can you expand. >> in section 1.4 in the affordability declaration of restricts for is ad bmr's we're going to revise a a description of the finishes of the bmr unit so that there's consistent instead of just saying with current standards it will say current destroy standards to insure it is a slightly better define when we are talking about finishes in is unit. >> and also i can't remember which area it was about making

sure that is bmr units have is same received the same amenities as is market unit is same door entrance for t smeeldz there a trend in the east coast about the bmr tenants have a different door is market unit are different entrances if some were here we go that indicates such amenities or such things are not amended later. >> for example the schematic assign e design race a shared lobby that is the better part of the schematic design we actually don't have lapsing but the fact we're conditionally approving the schematic design this has is shared elevators and lobby we

feel like staff feels like we're covered yeah. >> and amendments if any redesign or remodeling is staff will cover that we - >> that's right in our conditional language any proposed change orders that kind of thing needs to be approved by ocii we're confident that our partner t n d c will step ♪ the interest of the affordable units and is bmr's as well >> just one other thing i think it is on page it is page 32.2 letter d it did say internet and other media by the time when the buildings are available hopefully social media will be

included in advertising in local newspapers. >> that's a great point we'll add that. >> just to make sure a lot of organizations are making internet and social media affordable or free they'll be a better outreach to potential bmr applications. >> thank you that's great yes. >> you thank you. >> thank you, mr. white. >> thank you i don't think that changes the motions it is clarification and direction to staff so we have a motion and seconded please call the roll on 5 c. >> commissioner mondejar commissioner singh commissioner bustos sxhorlz i have 4 i's. >> thank you so is 5 c passes thank you so much everyone for our comments and good work please call the

next item. >> thank you, madam chair the next is 5 d workshop number two on ocii fiscal year 2015-2016 budget including administration debt service and active management goothsdz outside major project approved the urban bone center and south beach, western edition a-2 south of market arrest hunters point and bayview industrial triangle discussion madam director. >> thank you, madam secretary commissioners that is our second budgeted workshop on fiscal year 2015-2016 our first workshop really covered is enforceable obligations within hunters point shipyard candle stick and mission bay and transbay our so-called infrastructure obligates and parks etc.

this for for lack of a better term covers everything else within our broad portfolio we'll have the model it is blocking my view i see lee deputy director of finance and administration this is his last appearance commissioners he's accepted a position for the department of technology, however, we are vigorously working to backfill the position and fantastic fiscal controls that are implemented assault of mr. levin sons tenure to get us on sound footing and i am happy to report although you do review is entire year's budget the mayor's office and board of supervisors i'm sure you're aware of are the next step after your consideration which we hope on may 5th because of state

dissolution 0 law is process is really a subject to the recognized payment schedule process i'm happy to report as lee's departing gifts we received approval of our first 6 months of our budget certainly the balance of the budget is still pend and certainly i think we have special guest from the state department of the finance i know that cell white is here in the audience >> hello, welcome. >> leo if you will walk us through the budget and joined by your colleague to present the scope of the assets is remain loans and other obligations. >> thank you director bohe and commissioners i'm very glad to

be able to be here for this presentation there is a lot i'll miss not been before you in the future. >> you can always come back. >> in fact we've asked him to come back for this. >> but i was invited and want to be here n for this presentation so as director bohe mentioned this is our 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