. >> good afternoon, it is 1.09pm this is the relg glar meeting on the commission on community infrastructure and instra structure for tuesday, may 3rd, 2016. welcome is to members of the public. madam secretary, can you please call the first item ?oo ?a thank you, madam chair, the first order of business is item 1, roll call. commission members please respond when i cal your name. commissioner pimentel,

present. commissioner bustos is abdomen sepbtd. commissioner singh, here. commissioner bustos is absent and all members of the commission are present. the next order of business is announcements, the next regularly scheduled meeting will be held on may 17, 2016. the prohibition of electronic sound-producing items during the meeting. please be advised that the use of cell phones and similar electronic devices is prohibited at this meeting. please be advised the chair may order the removal of any person responsible for the use of cell phones, pagers or other similar sound-producing advice. c, announcement of time allotment for public comment. a make-up has up to 3 minutes to make xheblts on any printed item unless the commission adau.s a shorter period on any item. it is strongly

recommended that members of the public who wish to address the xlition fill out a speaker card and submit to the commission secretary. the next order of business is item 3, report on actions taken at a previous closed session meeting, if any. there are no reportable action. the next order of business is item 4, matters of unfinished business. there are no matters of unfinished business. the next order of business is item 5, matters of new business consisting of consent and regular agenda. first the consent agenda, 5 a, approval of meeting minutes of april 5, 2016. madam chair. >> yes, thank you. before we consider any action do we have any speaker cards? >> i do not have any. >> does any member of the commission have comments, questions, corrections or motions regarding the minutes of april 5th, 2016? >> i move. no questions.

>> second. >> it's been moved by commissioner mondejar, seconded by commissioner pimentel. please call the roll. >> commissioner pimentel, yes. commissioner bustos is absent. commissioner singh, yes. vice chair mondejar, yes. madam chair rosales, yes. i have 4 yes's and one absent. >> please call the next item. >> the next order of business is reg glr agenda 5b, approving a budget for the period of resolution no. 19-2016. madam director. >> thank you, madam secretary. good afternoon, commissioners and good afternoon to the members of the public, thank you so very much for joining us. commissioners, this is

approval of our budget for fiscal year 16-17. this is the third meeting on the budget for action. we have had two workshops and what we'll focus on this meeting is really the changes since the last meeting and the last workshops really in response to comments from the commissioners and members of the public and we'll walk through the next steps after that process, submital to the mayor's budget office and consideration by the board of supervisors. with that i would like to ask prima hoarder, director of finance and administration and we're here today for our last and final meeting regarding the 16-17 budget, very exciting moment for us all, no one more than me, of course. as you know, we met at the beginning of april on the 5th for our first workshop where we

talked about the project budget and the affordable housing budget. we met again on the 19th where we discussed operations, including debt service and asset management and we're here today for your consideration and approval following your approval we will submit to the mayor's budget office for their review and then we will discuss our budget before the board of supervisors on june 8th and then if necessary a second time on june 16th. so some budget updates, some things that have happened since the last time we talked. one thing that is different about the presentation of the final budget than the prior two vrtions in the final version of the budget we highlight what was prior authority versus new authority in this budget year. the budget resolution for ccii has always authorized expenditure in the prior year,

prior year approvals for affordable housing loans, for capital improvement and for funds that have been placed on reserve for community benefit grants and that is because these kind of expenditures can go on for many years. however, as someone new to our budget, in digging through all of these items and going back multiple years to confirm where the authority originated from, i found it a useful mental exercise for me to understand what was different about prior period authority and current year authority and so i incorporated that into the exhibits for the budget because i think it's an important piece of transparency for the public. so there's quantitative change, more just a change in increasing our transparency and greater public understanding of how we're spending our dollars. in addition, we have updated our excess bond proceed amounts. if you will recall, the commission has approved a number of annual use city departments to expend bond proceeds that have been in the

agency's coffers for a number of years. during the disluetion audits this was identified, entered into memorandum of understanding's with city departments subsequently approved by the commission. we've gone through all the cal amounts, confirmed all the payments that have been made for the year and updated those balances for the final budget. in other exciting news on april 21st we closed 3 of the bonds that the commission authorized this year, 2016a, mission bay north, 2016b and c, which were mission bay south. as you may recall two of those bonds were refunding bonds. we originally projected 13 million dollars in net present value savings, but we hit the market at a really incredible time and also the teamworked really diligently to get two upgrades to our rating. we went from a minus to an a in mission bay

north and from a double b to an a for mission bay sought. this has been a great credit that's never been acknowledged by the rating agencies. we finally got that acknowledgement which is really exciting and as a result of this rather than getting 13 million in net present value, we got 35 million dollars so that's pretty incredible. and what that means in a sense to anyone other than a finance person is that we're now paying less money in debt service and so we have more money to spend on the project. so that means more money for reimbursement, more money for affordable housing and more p money to spend on the things people really care about so that's really exciting. so that exchange is reflected in the budget because it happened on april 21st after we last saw you. also we have an increase in our capital expenditure in yerba buena gardens. following

our april 19th meeting we received word from our partner that some capital work is needed for the ces epbltd pool so we've included that in the budget. also in on-going conversation with our housing partner, mocd, we have increased our work order with them from point 6 fte to 1fte to reflect the need for monitoring of our affordable housing which is under construction and making sure the contractors are abiding by the terms of their contracts. we will have greater coordination between affordable housing and the project management teams, so we'll be using this year to work with mocd to both handle this kind of surge in workload and start transitioning the work back to ccii. in our professional services category, in reconciling the

15-16 budget to the 16-17 budget i would do an extensive process where i compared every line of the 15-16 budget to the 16-17 budget to see if it went up or down and i noticed that the payment for security, which is passed from the developer on to the port, was not in the 15-16 budget because at that time we thought the port would transfer. the port has not, although -- i'm sorry -- we thought south bay harbor would transfer to the port. although the harbor is now being operated by the port, legally it is still an asset of ocii so that expenditure needs to be in our budget and we also included room for a catch-up payment for 15-16. last, based on the feedback from the commission, we have decreased the administrative services administrative fee

from approximately 99,000 to $25,000 and administrative services has agreed to charge us at the end of the year based otd actual number of fte working at adm through the entire fiscal year. we do have one work program update, that's at block 4. as you know we are going before the board of supervisors to enter into an option agreement for block 4. pending the board of supervisors' approval we will be working with the developer on the design concept and the design and development agreement and we anticipate beginning construction not in this fiscal year but in the following fiscal year in 17-18. so, pending the commission's approval again we will submit our budget to the mayor's budget office for their review. we will go before the board to explain all the fabulous work that we're doing on june 8th and, depending on our conversations with the budget analyst we may or may not see the board again on june 16th. if you have any questions or

comments i'm happy to answer those questions. >> thank you. we need to take public comment first. do we have any speaker cards. >> i have no speaker cards. >> no speaker cards. this should be an opportunity for members of the public to come and speak to us. we are proposing a budget of $698 million. we're doing a lot of stuff, right? okay, commissioners, questions for staff? commissioner singh. >> yeah, we increase almost one-third from the previous year and what's the main where we're spending 3 million dollars. >> that's the reflection primarily of the prior period authority. and that's actually exactly why i decided to start reporting the prior period authority, is that there is a

lot of expenditure that is built into our budget from an accounting perspective it's in payments, it's an authorized part of our budget but we haven't been reporting those dollar figures so i think we've been undereftd mating the sheer amount of work we do by not showing the full scope of our work plan, some of which is reflected in authority that was received in prior years. >> okay, what is a couple things is the couple of things. >> those would be any capital improvements, so in yerba buena those would be any prior period bond authority that we're rolling forward. it would be all of the developer payments that are then passed on to cbo's in the shipyard so the

legacy foundation, the dph wellness payment, all of the cash balances that are in yerba buena cbdg funds we are holding on the books. >> (inaudible). >> it's a variety of those things. >> i believe some of that prior period payment is the result of our housing project. >> i'm sorry, yes. actually primarily --. >> affordable housing. >> affordable housing loans, yes. >> okay, thank you. >> it was so big it was like the elephant. >> yeah. >> any other questions? commissioner mondejar. >> just a couple questions. thank you for your presentation. so can you just expand on the construction specialist? >> sure. so one -- this kind of goes back to the former redevelopment agency had a function where if a developer made a change order or -- so we

come to agreement with a developer about what kind of affordable housing we're going to be building, but then to make sure they are meeting the terms of that agreement we need on-going review and checking particularly in the areas of change orders to make sure that everything is being built as was agreed upon. after dissolution because mocd does so much of its own affordable housing building, mocd took on that function for ocii and we did it through a work order but at this tiek there is so much affordable housing in the pipeline and so much pressure in the community to build for obvious reasons that it's difficult for mocd to support their own projects as well as ours and in addition our projects are very particular and complex because of redevelopment and because of what else is going on in the project area. and so we'd like to see a greater synergy and

cooperation between the construction manager who is monitoring the affordable housing within the project area, and the project area management staff. so we think having that fte in house is going to allow us to have more cooperation and more communication flowing between the two roles. >> is this going to be permanent or temporary position? >> it's a permanent position. >> so this is on-going. >> yes. >> then the other question i had, you said mj requested some capital improvements, i can't find it. can you expand upon what are those? >> the crescent pool had some water damage that needs to be repaired. >> and that's what it is? >> yes. >> and what was the amount again? >> 1.2 million. >> okay, thanks. >> any questions? >> two questions. what will

the outreach process be for the construction supervisor to ensure that the diverse pool of candidates but also diversity in terms of the selection pool throughout the city as well, and then can you also go over the security services, what that will entail? >> sure. so i think the question you are asking, correct me if i'm wrong, you are asking about our recruiting process for -- you know, we place a great importance on diversity in our organization and, you know, i'm really pleased to look around my peers and see a very diverse group of peers just like all of our recruitments we will be reaching out to a variety of sources. we've used private recruitment firm, we place notification on our publicly available web site, we do notifications through a number

of employment job searching web sites so that diversity is something that's always on our mind and that we're always seeking to achieve. >> will you consider using, for example, community-based organization listers posting on social media and church bulletins as well? >> i know we have hosted on is it indeed or idea -- indeed, which i know is -- i know we use those kinds of resources, but, yeah, we would certainly be happy to cast the net as wide as possible. >> to see really diverse outreach where you are able to get a diverse pool from and where many people are receptive to getting that kind of information. i know a lot of individuals go through the news letter and it has jobs, internships and opportunities and also shared with a diverse group of people throughout the city as well. >> we are always looking for more ways to get the word out. finding good candidates is hard so we really, we welcome all of

your ideas for helping us get the word out. then i have to apologize, i totally forgot your second question. >> security services. >> yes, security services. lanarr pays for security services is, is it at the bow and arrow? >> we have rincon park as well as south beach harbor there are security services. they really almost operate as enterprise organizations so in both cases the port of san francisco is the c title property owner, we entered into a lease arrangement with the port for south beach harbor, we went through a series of steps with the community and the boaters and certainly the surrounding community and consulted the former cac members. we're pretty much done with rincon point south beach, took that to

the commission but we're still going through the regulatory steps, as miss mulder said, to free that up from state lands. there is security at state harbor and certainly is security at rincon park and in that case we contracted with the port of san francisco for them to pay for maintenance, security for their own park, we actually got a contribution from the gap so the security i believe she is referring to is for south beach harbor. >> yes. >> south beach harbor. so it is existing since day one, it's just part of the expense, janitorial, staffing costs, actually all of the staff from south beach harbor transitioned to the city and became employees of the port of san francisco. >> i just have a question on the mou's with the city. two things. i guess i'm not seeing here quickly how many we have, i mean what are the -- i know

the traditional ones, city attorney, planning, the city administrator or administrative --. >> these mous are slightly different. one mou that was completed was dpw and they did some work on some alleyways in soma for around $75,000. around christmas the commission reviewed a mou with mocd for 8.2 million dollars to complete some elevator work in some of mocd's housing area projects and also that was, if you recall, mocd is releasing a nofa to solicit some more housing services and then we'll be funding those once they complete the nofa and that is set to be released this spring with the decisions being made later this summer. >> and the one with planning?

i guess i'm not seeing it. what is the --. >> that is a slightly different -- these mou's we're talking about here are funded by bond proceeds. the mou with planning is funded through either, depending on the work, so if planning is reviewing plans for, say, the shipyard then we would charge that back to the developer. there is no other funding source because it's a, they were doing work for something outside a project area where there is no developer or they are doing work funded by ocii like in transbay we would use tax increments to pay but these are a specialized set of mou's that were created to dispose of the excess bond proceeds and to make sure they were spent according, in a way that matches with the original bonding venture. >> i just want to make sure we have plenty of funding with planning and whatever city agencies. >> yes, yes. >> because it's sort of my concept of an expansion of

staff approach when you need us, many things can happen in a year, right? if you need the -- if you don't have the staff, the staff is stretched, you can't find someone in the private secondor to step up immediately we at least have someone with private sources the mou to help us out like we do with the city attorney's office. >> we have existing mou's with administrative services, planning, department of public works, puc, sffd, the fire department, the controller, olse, which is actually a part of administrative services, they are our labor standards enforcement. >> oewd >> oewd, thank you, mocd and i think that runs the gamut. >> okay, good. >> any other questions?

commissioners? motions? >> (inaudible). >> thank you. commissioner mondejar has moved, is there a second? >> i second. >> commissioner singh has seconded. please call the roll. >> commissioner members please announce your vote when i call your name. commissioner pimentel, yes. commissioner bustos is absent. commissioner singh, yes. vice chair mondejar, yes. madam chair rosales, yes. the vote is four with one absent. >> the budget is approved. >> good job. >> yes, excellent job. >> the next order of business is item 6, public comment on non-agenda items. madam chair? >> do we have any speaker cards. >> no speaker cards. >> we have very few members of the public with us today. well, there's no public comment so beak move on to the next

item. >> the next order of business is item 7, report of the chair. madam chair? >> i do not have a report. >> the next order of business is item ate, report of the executive director. madam director? >> commissioners, i just have one verbal update. as you are aware, we issued a request for proposals for two housing blocks for over 300 units, two separate blocks in candlestick around the new candlestick retail center. we recently received submitals per the due date last week and i'm just going to let you know the submitals we received we'll be reporting back to you, certainly going through the due diligence and review process, meeting with the teams, interviewing them and then coming back to the commission with a recommendation in a couple of months for selection of a developer or developers for those two blocks. and the 4 teams that we received proposals for for candlestick point block 10a

north and 11a south include tenderloin neighborhood development corporation with young community developers and we only asked for them to bring on an arc tegt and then we would work with them to fill out the rest of their teams, ycd brought on herman colliver architecture, the next team in no certain order, mercy housing with san francisco housing development corporation and paulette taggert architects, the next team with mccore mik barren salazar and hkit architects and the fourth team, integral group with tab err knack he will community development corporation as well as providence foundation for services and ga architects. there was the same set of teams for the next block, candlestick poipbd 11a south, same

architects. the only deviation architects mercy brought on made and stais and the integral group also with tabernacle david baker architects. again we will come back with you with a very strong pool, diverse pool, 4 strong teams certainly for each of these blocks and we'll go through the remaining components of the process and report back to you with our recommendation in a couple of months. that concludes my report. >> thank you. do we have any speaker cards, speakers for the executive director's report? >> no speaker cards. >> are there any questions about the commission on the director's report? >> no. >> okay, please call the next item. >> the next order of business is item 9, commissioners questions and matters. madam

chair. >> does any commissioner have a question or a matter to raise? yes, commissioner. >> this is an update on interns. >> the budget that you just approved does include staffing for temporary assistance. typically we get interns or limited term assignment help, usually they come on during the summer so we do have some head room to provide for temporary help including interns as part of this year's budget and we'll be working with our hr and finance division to go through a process to bring them on board. >> any other questions? i just want to say thank you for some of the material that i haven't gone through entirely. >> i know. >> the demographic, yes, great. >> i did not go through but i read it.