miguel covarrubias mural. 6d, resolution authorizing the treasure island director to execute a fourth amendment to the agreement between the treasure island development authority and langan engineering for environmental engineering consulting and oversight of the navy remediation for the treasure island/yerba buena island development project extending the term throughout december 31, 2022. >> so moved. >> second. >> this is action item. any questions? hearing none, what is the fate of the board? all those in favour say aye? >> aye. >> all those opposed? the ayes have it. >> item number seven, resolution approving and endorsing a term sheet for a 66-year lease agreement between the treasure island development authority and treasure island museum association incorporated a california nonprofit corporation for operation of

the etch treasure island museum. >> good afternoon, madame chairman, members. we're requesting approval of the term sheet for a 66-year lease agreement with the treasure island museum association for the operation of the treasure island museum where san franciscans can learn about the history of treasure and yerba buena islands. since 2007, we lease a portion for office space, museum display, storage and cure rating as well as conducting several educational programmes to the general public. the premises consists of approximately 160 square feet of display space located on the ground floor and approximately 1545 square feet of storage space located in the basement of the administration building. tima needs to invest in its facilities and security in knowing it will be able to

remain on the premises for an extended period of time in order to attract donors for its operations and improvements needed for its goals. tima and project staff have negotiated a term sheet with a 66-year lease, the proposed term sheet allows tima to develop and manage the treasure island museum which, in its new location, can be consistent of 3500 to 4,000 square feet of exhibit space located on the ground floor of the administration building, with an entrance off the lobby and approximately 2,000 to 4,000 square feet of back of the house storage space for storage, exhibit preparation and other items and that will be located in the basement of the administration building. tima proposes to make certain improvements to building one, which will occur in several phases, commencing its first phase within two years, following lease commencement. the proposed lease will be provided to tenant at no-base rent.

upon endorsement of the term sheet, tida and tima will work together to negotiate the proposed lease. the lease will be subject to prior approval of the authority board as well as city board -- the city's board of supervisors following any required environmental review. with that, i'd like to ask the executive director of the treasure island museum association to come up and say a few words about the project. >> thank you, rich. president tsen, directors. i want to thank your board for consideration of this term sheet and for all the support and encouragment that you've given us over the little more than 10-years that we've been back in building one.

i'd also like to thank rich for all the work he did to move this item to your agenda and i'd like to thank rich jack, bob beck, peter sommerville and all your staff members for all the help they've given us the over the last 10 years. i think i should also mention some of our island partners that we collaborated with in that time volunteers from south to job shares, some help with our galleries in island creative. and we haven't collaborated with mercy yet, but we went over there after our last lecture for lunch and it was fantastic. and you'll be hearing from us about a collaboration. [laughter] when i spoke to you in november, i told you who -- what cohorts we were looking at

to serve with the museum. what results we wanted to produce for each of those groups and how we were going to do it. what i didn't talk about was why. and i remembered this morning, better late than never, about a year ago nate levine, our board development consultant told us they won't forgive you for what you're doing, but why you're doing it. so, today i'd like to talk about why. i've been on the board of the museum for 20 years and we have four board members who have been on longer than i have. now the stories of the island draws to the island. and then we get hooked and it is not just the stories that hook us and keep us involved for decades. there is a deeper meaning on treasure island and we knew it

in our hearts. but now that we go out to the sfi in the bay area and tell them why they should help make this museum a reality, we have to move the reasons from our hearts to our tongues. let me give you an example of what we see in the island. and i'll do that by inviting you to come to the lecture a week from saturday in our island-big ideas series. whoops. i'm getting ahead of myself. i always do this. the lecture is called from the magic city to the magic kingdom. and -- ok. why does it do that? let's try this. ok. the lecture is called from the magic city to the magic kingdom. mm. is it on auto or am i doing something wrong?

>> i want to go back and it is automatically scrolling forward every five seconds. ok. the lecture is about walt disney who visited the golden gate international exposition and -- this is not working. and he was inspired -- here. maybe you can figure it out. ok.

walt disney visited the ggie and he was inspired by the innovations that he saw there. around if he had not visited the ggie, disneyland might well never have happened. in other words, before there was fantasiland and tomorrowland, there was treasure i-land. [laughter] and this is one example of the kind of innovation that we see throughout treasure island's history and that is really our themes is innovation. now san francisco is known -- we're not a great financial city. we're not the capital of the state or the biggest city even in the bay area. but san francisco in the bay area is known as a hub of innovation. that is the hallmark. and today's bay area sparkles with innovation.

but before half a century before apple, google and sales force and into the future of, you know p from the construction of the island and the bridges, the fare, the pan am clippers, from the art in action exhibition at the ggie to the treasure island arts master plan, let's go back. yeah. i think i know what it is. and then forward to the sustainable redevelopment of the island as a model of sustainable, urban living. treasure island is a reflection of the bay area as a driver of change. and its continuing legacy of innovation. so, san francisco and the bay area need the treasure island museum. to preserve our heritage of innovation, to inform visitors

and island residents, visitors from the area and all around the world, about our stories. and inspire new generations. with our spirit of innovation. and that is what the treasure island museum aims to do. preserve, in fact, and inspire. thank you for your consideration of the term sheet and for all your support. >> with that, we're here to answer any questions that you may have. >> ok. board members? >> yes. >> this is great. and thank you for the museum. you've been committed. we see you here all the time and this is an easy one for me and i'm only one vote here and i'll make a notion approve. >> any other questions from the board? yes? mark? >> more of a comment. i love history and i'm a history buff. [inaudible].

at how little i knew about the history of [inaudible]. two islands and -- thank you. the importance that they have played in the development of san francisco. you know, supplying mainland with goats and all sorts of wonderful things. of course, the flower, the yerba buena itself, it is just fascinating. and i mentioned before i had a great aunt who actually went to the '39 fair and she always brought back all these great tales of san francisco and i think that's how i somehow ended up here. but it's just a wonderful place. there's so much there. so much history. and so i -- yeah. 66 years. that's great. i'm sure in 66 year, we'll be redoing it.

thank you. >> yes. i'll second the motion. yes. >> any other questions or comments? before we act, i would like to open it up to the public. if there is any comments or questions from the public, please come forward now. ok. hearing none, let me just say i want to also thank the members of the treasure island museum board for all that you've done and it's so important for us to preserve that rich history at treasure island. and i'm very glad to see that you are, at this point, coming to us for that lease and we certainly understand that you need that length of lease in order to be able to secure the financing. so, it's before the board. all those in favour say aye? >> aye. >> all those opposed? the ayes have it. next item.

>> them number eight, resolution approving and authorizing the execution of a second amendment to the professional services agreement between the treasure island development authority and one treasure island to increase the annual scope of services and not to exceed contract amount for fiscal year 2017-2018. >> good afternoon. again, we come seeking your approval of the second amendment with one fraesh island, former the treasure island homeless development initiative, not to exceed contract amount for fiscal year 17-18. on june 14, 2017, the authority board approved the professional services agreement with thidi, one treasure island to co-ordinate training and employment opportunities. on september 13, 2017, the authority board approved the first amendment to a professional services agreement, which commenced on october 1, 2007 team to

increase the endoscope of services to include additional funding for the pilot construction training programme. we went from $300,000 to $le00,000 for the pupser of expanding the scope, to add a second building to be removed and two, providing hazmat abatement and removal of this these buildings and the buildings were buildings 40 and 107. and lastly, developing a hazmat abatement scope of service for eight additional properties. those include buildings 215, 216, 257, 261b, 330, 450, 670 and 671. as the authority would like to demolish a majority if not all of these buildings in the future. either the proposed contract of the second amendment that we're bringing today, project staff and one treasure island, i would like to increase the

annual scope of services from $800,000 to $2.4 million for the purposes of expanding the skoem of work under this pilot construction training programme. and here we would like to move forward with remediating the hazardous materials within buildings 215, 216, 257, and 330 in preparation for demolition of these buildings. treasure island community development, ticd, will then be responsible for demolition of buildings 215, 216 and 330 and affordable self-storage will be responsible for demolition of building 257. again, what this programme is doing is remediating these properties and then the developer is left to remove the -- some of the structures and we also have a new tenant that is willing to remove building 257. funding for the expanded scope of service will be taken from

authorities existing facilities maintenance account and prior year fund balance. pronltz staff has also negotiated and will present later to you a lease with affordable storage, which will commence on june 1, 2018 for approximately 185,000 square feet of space, created by demolishing building 257 and the rent for that land will be $35,000 per month. with that, i'd like to ask sherry williams from one treasure island to come up and talk a little bit about the programme. and i believe we have some folks from eco bay as well here as well. >> thank you, rich. good afternoon again. this project, the first one t pilot that you all approved was tremendously successful and it is really, truly embodies this vision of the community t

private partners and the public working together for the public good. we're getting rid of these eyesore buildings that represent truly a nuisance to the community. we are providing jobs and job training for people with barriers to employment and creating spaces that will eventually be reused for a better and much healthier purpose and so i'm going to invite the one treasure island director of programmes who is going to share some of the results of the first pilot that you all approved. commissioner richardson attended the graduation as did director beck. but he can share some of that. and then echobay, which has been an extraordinary private partner who is really going above and beyond in terms of the training component and the hiring component is also here

to talk about their role and we also have a graduate from one of the first programme that will also be speaking. >> good afternoon. i'm with one treasure island. i'd like the share with you some of the results from our first training cycle. the first training cycle, we had 35 folks who have expressed an interest and we were able to enroll 15 of them. of the 15 of them, 75% of them graduated from the programme, which is 11. of the 11, 75% also got employed by echobay. and so that is about eight of them that got employed by echobay. the other three didn't get employed because they didn't pass the drug tests. however, we continuously work with them and work with in collaboration with city bill and refer them to other jobs so

they did get other placement and other construction jobs. of the eight that were hired by echobay, 90%, which is seven of them, is still currently employed with echobay after 90 days. so, those are some of the datas with regards to the first training cycles. also i'll speak about why the programme has been so successful. sherry had mentioned earlier this is a fantastic community, public-private partnership. they have a social mission to their business and that is they wanted to make sure that they provide opportunities for the disadvantaged folks to be able to turn their life around and to be able to build financial security for themselves and their families. because of that mission, they

were actively engaged in the training of the programme and the first training of the programme and they were also actively engaged with the development of the programme. the other reason why the programme has been so successful is because echobay made a commitment to hire the graduates upon successful training -- when they successfully complete the training along with passing the training test. so, there is a lot of training programmes out there. but you don't necessarily hear that there is employers that have made a commitment to actually hire directly from the programme and people who successfully completed the training programme. we had learned -- our training

programme, we don't want it to be solely about training. we want it to be about working with the families and the individuals to help them build long-term financial security. because of that, we have integrated our training programme with the financial xloep of it. we needed to communicate that message from the very git-go so we change our or yen -- orientation to make sure we communicate that message up front to the clients and understanding that they're not just participating in a training programme. and because of that, this past month, our orientations, we've been hosting it every wednesday. we have seen greater take-up of our financial coaching services. along with the job readiness training workshops. prior to the next cycle starting in march. the other lesson we learned is

that in working with echobay, we needed to do a better screening and assessment of the clients. we had then instituted a physical assessment along with a paper screening assessment and the third piece of assessment that we newly instituted was a tape assessment to account for the client's language, reading and math level. because they needed to at least have 8th grade reading and math level in order to function in the training programme. and then the other lesson that we had learned that during the first cycle, we had some clients, some trainees who had disputed whether or not they came on time and so forth. so we instituted an attendance policy along with a good

standing participation policy to mitigate future disputes around those issues. and lastly, we modified our math training curriculum to be more reflexive of what the construction industry math looks like. so, those were some of the lessons that we learned. so i'm going to turn it over to echobay, our partner. who's going to say a few words from echobay about the partnership. >> good afternoon. i'm dalen rice from ecobay services. first of all i'd like to express out grateful we are to have the opportunity to participate in a programme like this. alex, sherry, they've all done an incredible job. not just with connecting us with these individual, but i'm also preparing them in advance and helping to set the proper

expectations before hand. to be honest, this group of new hires that came in, they're probably more prepared than any other class that we've had in the past. so i think that attests to the level of work that they area doing over there. of course we really appreciate them. as far as the success we've seen from this programme, honestly from our shoe, we feel like it has been a complete success in every aspect. the new hires in the first training class have definitely exceeded our expectations and they have quickly become valuable members of our team. of all the people that we hired in the first class, we've been able to retain most of them. to kind of give you an idea, we work with a lot of different local hire groups and having over 50% retention rate is unheard of from our experience and we've been able to keep most of them on.

and that's allowed us to give them more development tunltzes, not just on public staff, but staffing them on private jobs as well. i also want to say that participating in a programme where the government and the nonprofit organization come together to, you know, clear a path to success for these people has really been a humbling experience for us. i'm watching these people develop from where they were when they came in to where they are now and crossing off some of the personal goals they have set for themselves. it is something we've been proud to be a part of. so, we're looking to get involved in the programme in different ways. the culture we have in ecobay from the president, vice president all the way down the line, dwroun, any opportunity we have to contribute to -- back to the community, we definitely try to take advantage of that. our goal is the next group of

trainees that are coming in, we are planning to be more involved in the selection process to try to help find individuals to bring into the programme. and the group that came in the first time we paired up with the group that's coming in so we can establish a mentor programme. we think that this will allow for the continued development for the first group and also for the second group a partner to ask questions to and get advice from and, you know, just have somebody who's already gone through the same process that they're about to go through themselves. so we're definitely looking forward to the next steps and trying to continue to build on the success that we had the first time around. i also brought son with us. he is one of graduates from the first class.

>> when i was in thidi and taking classes, it was interesting because i've done building maintenance and welding and electrical. this is a league of its own. thidi has offered me opportunities to actually reshape my life. coming from the background that i've come from. they give me the opportunity to excel myself, i guess if you would, in my life. to be more responsible. to be dependent. their cohesive we coebay is just like i would say coffee and creamer go together.

they have been very grateful. the staff at thidi is super, super helpful. they have actually helped me -- taught me how to balance my financial situation as far as spending. i've been tallying up the things i'ves been spending on and said no, i need to cut that out. they helped me out a lot in that area. i like to thank them -- i can't thank them enough for giving me this opportunity. i'm so grateful and so humbled and blessed. and they have given me a sense of self-confidence, of purpose in life. to continue to value my moral sense. i thank them very very much. other companies would not have gives me this opportunity. they understand my situation. i was pretty much honest with them for what my background is.

they allow my voice to be heard. i'm very glad that they have listened and given me this opportunity. hopefully i'll excel and maybe be one of their supervisors one day. [laughter] thank you. >> thank you. >> thank you so much. i just wanted to mention that 100% of the graduates of the programme were indentured into the programme that we're doing this programme w local 267 as well as local 261. that has been really important to us because we're working with folks to permanently move them from poverty to jobs that provide good union wages to move out of poverty permanently. so i wanted to make that other point. >> thank you. >> with that, we're here to answer any questions you may have.

>> directors? >> yes. thank you. this is a public-private partnership where you have ecobay and one treasure island. what can i say? i attended the graduation and i wished all of my directors and people were there. this is what treasure island is all about. we need to continue to get this kind of programmes as fast as we can. all of us here are very active in the various communities and when we leave this office, i'm sorry i'm struggling with my voice here, when we leave this podium, we are actually in the community advocating for workforce development and i'm going to invoke the memory of mayor lee. mayor lee, all of his legacy, really accentuated on what

development actually having all this youth and adult [inaudible] trained and then hiring them. ecobay is the only one in san francisco. that's why we'll be out there talk about ecobay and making sure that the city, we have a success programme here and partnership that they need to adopt. and one thing is going well at the city level is the city build director. he is the man that is going to help the city actually begin to make sure that all these commitments are made so we're very happy about that. and i think this is a model. so i am going to approve this project. it is the direction we all need to do and go more on the soft skills and hard skills for construction. >> we have a second. are there any other questions? yes, mike?

>> yeah. i have a question. in terms of the number of people who will actually be trained, what is the estimate for this contract. >> this contract, i believe it's going to be -- i think it is 30 -- 15 for each class. >> so, in total it would be -- >> i believe it would be 30. correct? >> we're having one coming up in march. [inaudible]. >> so basically each class is 15 participants. >> and that is for the scope of this contract, which is $2.4 million for this portion of it, how many people are we expected? >> it will be 15 new folks as part of the march class. so building 257 will go first and the plan for that is to use

previous class for buildings 40 and 107. that class will continue on with conducting the work at 257. what will go through at the same time simultaneously, we'll have our class in march and include 50 new participant and once they graduate from that class, they move into the remediation work at buildings 215, 216 and 330. >> and the scope is for this here -- >> yes. the work is to be complete by june 30. >> so, we're expecting about 30 people then? >> can you clarify the $2.4 million is for both the class that was already completed as well as what's proposed and kind of divide out the classroom component versus the physical abatement component. >> yes. gotcha. so as bob indicated, as part of the $2.4 million, which is the

total amount that we're spending on the programme, we've already had one class that conducted work at buildings 40 and 107. so, that was 15 participants that participated in that programme. twhauns work is -- that work has been completed, those individuals will be carried forward into the new -- a new class, if you will. not a new class, but will continue on with building 258. and then in march of this year, we'll have a second class of 15 individuals. so, in total with this contract, it will be 30 participants. >> and the $2.4 million, it is for the work to be done. there is a training component. but there is also the actual remediation, which is done by the labour of the trained -- >> so the amount includes not only the classroom participation and all the certificates and credentials, but also includes the actual remediation cost.

remediation work is very expensive to remediate the hazardous materials in buildings. and the environmental assessments. that's true. >> and the disposal so basically all of the remediation work for those buildings will be incorporated in that amount, that contract. the training, the environmental assessment and the disposal of the -- >> yes. >> i just wanted to clarify that. yes, mike? >> just a quick question. and the salaries, you know, others than the [inaudible]. >> yes. they're apprentice salaries, i believe.

>> they're being paid union wages at $20 an hour plus the fringe benefits. >> one more question. >> i know exactly what those buildings are. at least i think i do. [inaudible]. >> so building 258 is locate at 9th and avenue e. so it's the building that is right next to the community service provider trailers. it's been a vai -- vacant building that has been an eyesore for area as well as a haven for folks to break into. buildings 215, 216 and 330 are located at 11th and avenue m between m and n. currently there is tenants in 216 and there is one tenant in

330 that we're relocating. >> [inaudible]. >> talking action building 29? >> yes. >> that is a project that if you -- we listed that as far as doing our environmental study. but we'll probably bring that forward for next year's budget cycle. the reason why we chose 258 at this point is that we have a tenant that is willing to pay us rent to rent us land underneath the building and it is a sizable amount so we'll be able to recover our expenses for the programme within a few years after leasing the property. >> and may i ask of the trainees, are they all from treasure island? have we opened it up to san francisco and beyond or what are the rules?

>> the first round of application, the majority of them came from san francisco, but the people that actually selected, the 15 that got selected of the 15, five of them were treasure island residents. the others were san francisco residents. >> as far as what the actual training cost, our training costs, we calculated and came out to like $5700 per trainee. which is significantly lower than training costs for the city of san francisco or for the state of california. for any fl hard-skills training, they range anywhere between $7500 to $12,000. ours are at $5700. >> our goal that the jobs that

are produced by the development activity at treasure island does help people who were there as well as in san francisco. and then provide them the training so that they can get those jobs. it's very much in our scope. but it would be helpful and this is addressed to staff that when a proposal comes to us withs the request for funds, especially at the end of the year, and if there is the intent to extend the agreement that we have some performance evaluation so that we understand how the funds are being used and how successful those funds are. >> yeah. this is part of one treasure island's professional service agreement. so there is no extension beyond this amendment for this specific contract.

>> thank you. any other questions? we'll open it up to the public if there is any comments or questions from the public. you can come up to the podium now. yes. go ahead.

>> i just want to say -- >> oh, i just wanted to speak in support of sherry and the programme and what thida is doing to support the community and those people that can benefit from that. and we as a restaurant would support that as well. so, thank you. >> all right. the matter is before the board. all those in favour say aye. >> aye. >> opposed? the a ye,s have it. thank you. >> item number nine, resolution approving and authorizing the execution of lease number 1201 with affordable self-storage inc., a california corporation, for land located on avenue a between 9th and 1 1*9 street, treasure island. >> good afternoon. treasure island development authority. footballederable self-storage has been in the sefm storage business for 19 years and is

interested in operating services on treasure island. project staff at affordable storage has identified building 257 located on avenue e between 9th and 11th streets as a potential site for storage facility. over the past 15 year, 257 has been and continues to be an atractive [inaudible] on treasure island. it's an attraction and a haven for squatters, copper thieves and various other trespassers. additionally, s.f. fire department has extinguished three fires that the location within five years. tida has expended considerable resources with these issues. as part of the authority and one treasure island second amendment agreement that was just previously approved and as we stated previously, the hazardous materials within building 257 will be abated through its pilot construction training programme.

building 257 and its adjacent land is in major phase three of the development project and, as a result, it is not anticipated to be developed for several years. the authority is seeking to enter into a new five-year lease agreement with affordable self-storage for approximately 185,000 square feet of land located on avenue e and 9th streets. the new storage facility will generate approximately $420,000 annually. the proposed lease will allow for 277 days of early entry in consideration for expenses related to demolishing building 257, construction and some startup costs for the new facility. affordable self-storage lease will begin june 1, 2018 and end may 31, 2023. with that, i'm here to answer any questions you may have.

>> yes. will the storage be used for the relocation? will it help with any of the low-income tenants in any location at all? are there plans for that? >> we haven't had plans, but we can definitely ask the provider. i know that it's basic general self-storage so we can definitely work with the providers. >> this is an existing operation that is being relocated from port property to the island. >> thanks. >> mm-hmm. >> ok. >> how many storage units will there be? >> i don't have the number of how many storage unit there is will be that i don't know. i don't know if we -- if he's actually maped out, has a diagram of the premises layout yet. we can definitely find that out and let you know in the future. >> but it is revenue -- >> it is $35,000 a month. here again, benefits in that at

this time provides a training component to it. we remove an eyesore and generate revenue to pay for it. and in future years, we'll generate revenue from it. >> thank you. >> i have a question. does it include boat and car storage or r.v. storage? >> yeah. i think initially it is going to be just storage. it could be vehicle and r.v.s storage as well. that is permissible under the lease. but i'm not exactly sure what his plan is. i know in the city he has both. >> that is great need. >> do i have a motion? >> it's -- yes. move. >> i move. >> i second. >> and second. i'll open it before we take action, i'll open it up to the public. any comments or questions? hearing none, all those in favour say aye? >> aye. >> all those opposed? ok. the ayes have it. thank you. >> thank you.

>> item number 10, budget. >> thank you, directors. just wanted to give a quick introduction and preview of this year's budget process. right now we're developing revenue projections and working with city agencies and vendors to project budget requirements for next year and reviewing our prontsed budget with g.s.a. along with all the other departments that report to the city administrator. in april and may, g.s.a. will submit its collective budget to the mayor's office and we'll bring it back to the board for approval. june 1, the mayor is expected

to submit the proposed budget to the board of supervisors and, of course, on june 5, we'll have a new mayor's election. as well. but then the board of supervisors will hold its budget hearings in june and adopt the fiscal year 18-19 budget. in terms of our current fiscal year revenues, slightly under projections. the commercial revenues continue to be strong. however, we've had some impacts on the net residential income. we did complete the last of the environmental programme and as well as the jon stewart company has supported us in some of the probables that we've done, for instance, the new dog park and playground set-up.

total expenditures are projected to be within budget and -- but it does look,based on current projections, that our total expenses will exceed current fiscal year revenues. we do have an accrued fund balance from prior years of several million dollars that we can draw upon. and then ultimately at that point where we have a sustained number of years with revenues -- expenses exceeding revenues, ticd is obligated under the d.d.a. to balance our budget at year end. continuing programmes next year include ymca programmes. again, they have gone now, we made it a modification in this year's budget to extend them to seven days a week and that will continue into next year. d.p.h., one treasure island's

many programmes including shipshape and pantry and others. as well as our facilities maintenance, and operations support from d.p.w. anticipated expenses next year, new budget items or expanded budget items, we are planning to continue the preapprenticeship abatement training programme next year. looking at the building that director dunlop was discussing and building 29 is a building we plan to abate in the fall and we'll look and see if we would potentially have an additional spring class of next year. we do have a one-time payment of just under $1 million that ticd needs to make to independent construction, which is the firm that leases the site where we have the dirt

stockpiled. and so that will be a pass-through payment through our budget to independent construction. we're expecting to see solid revenue figures again next year. with some new tenants and so we're actually projecting even higher commercial revenues next years than this year. and we're adjusting our projected residential revenues slightly downward to reflect some of the costs -- actual revenues realised in the last few fiscal years. but the good news is we don't expect any further tenant relocations to support navy work. and then, again, as has been the case the past several years, we're promising expenses

to exceed revenues, but as i mentioned, this is the first fiscal year where we've actually believed we may exceed revenues. so even though to present a balanced budget outlook for next year, we will include some draw upon reserves. it remains to be seen whether we'll actually need to draw upon those reserves or not. so, next steps going forward, we're going to continue working with the city agencies to update our projected interdepartmental work orders. meet with ticd to review the proposed budget as we're obligated to under the d.d.a. and then fwring detailed budget to the tidal board with updates as we go along and then support the board of supervisors budget hearings in june. so if there are any questions, i'd be happy to answer them. >> any questions by the board? yes, linda? >> yes, bob.

i think this cycle is the first time that we are anticipating a budgets increases can. i think we saw that coming. you know, we're getting to a point now where we are implementing promise and people ask me around town why a budget so low and i'm telling them just wait because we've gone through the entitlements and now we're really doing things. you are going to need staff and everything -- so, let's make sure that this year's budget is set to baseline. we need to cushion everything we get. because what. happens is that we keep shortchanging ourselves. by the time you go to the board of supervise source, they will be confusing saying you will be living within your means when you're not for the last few years and now you are asking for this money and this is something that we talk about before. make sure we get what is due

for treasure island. and with regard to the community programmes, you listed all those nonprofit agencies, that become treasure island and ymca. and girls club. and however the kids also utilize the programme. so, at least i would like to see a notation there. so it is transparent that we are supporting all these kids, you know, whether they are ymca, boys and girls club, that it is a concerned support for the boys and girls club in san francisco. so the board of supervisor, i'm sure they'd like to see it. >> marcus. >> i mentioned this last month and perhaps you already talked about it, but i was curious

about the national budget and recently put out that the infrastructure part of this budget or whatever, we pay 10%. [inaudible]. was there any anticipation from our part for money for that? we had mentioned before that there is some potential impact to the value of the affordable housing development out of the tax deal. out of the infrastructure plan, there are a few area where is

we're potentially going to seek outside funds. the first is to procure the ferries so any local, state or federal programmes that might help with those transit-related costs would be something that we've been seeking. overall, i -- i don't-you know if you look at a lot of historical programmes, for instance federal funding that muni receives for transportation-related projects, federal funding that the city received historically for the clean water projects, clean water programme was in 90% federal participation. most muni transportation-related projects are 80% federal transportation. so, the proposal that was put out that was going to be 20% federal transportation was

going to rely upon federal and private sources to make up the other 80%. it is not really consistent with past major infrastructurer programmes. so, remains to be seen what gets passed by congress. hopefully it will be restructured significantly. overall, our programme doesn't project a heavy reliance upon federal funding for infrastructure. >> [inaudible]. >> we're not considered to have historical value. they were largely barracks that were popped up in the -- particularly in the late 1940s and 50s. the first two projects and part

of the prior abatement class are at 4th and h. so that is building 15 and 29 -- sorry, 104 and -- i'm confusing numbers. anyhow, there are two -- there is the boiler plant with the fuel storage tank and just beside that, there are two of these smaller barak buildings. so, those were abated and will be coming down with in the next month or so. as part of the first training class. and then we'd be doing the building 29 is actually -- has the appearance of being several buildings but it is actually a full contiguous block. and that will be what we want to tackle in the fall. >> ok. thank you. >> ok. >> any other questions? bob, will you be presenting the detailed budget to us in march? is that your plan? >> yeah. i plan to bring the detailed

budget with staff report either in march or potentially appraisal. -- april. and then bring it as an action item in may. >> i see. i would request that when you bring the budget, that we look at not just this year, but also the thinking going forward. particularly because if there is a deficit this year and we're drawing from fund reserves, not knowing what the other expenses will be going into the future, it's difficult to make that decision. so if you would present not only the budget for this fiscal year, but also what other projections for ongoing expenses. and income. >> yeah. and i'm working with michael clark on our staff. we're going to be restructuring the way that we present the budget information.

so that we'll have personnel and administrative expenses separate from our contract and work order expenses, separate from our development-related expense. so you'll be able to see kind of, if you will, the fixed and variable costs so that portion of the budget that we expect to grow as we move deeper into development. and then the other component of that, of course, is the revenue side of the equation and currently we do draw about 20% of our commercial revenues from hangar three and the area around hangar three. and so when that area is impacked by development, if we were to need -- require that to be vacated, that is when we start seeing big hits on our commercial revenue side. that will be part of the next subphase area. but we believe we can keep the building occupied during the

infrastructure build out of that subphase. >> but you will get into it. but the things that i'm most concerned about is that we are in the process of building public parks a marina, there's lots of infrastructure that we have to undertake and tida is going to be responsible for that maintenance and security. we want to make sure we have a plan on how to deal with the operations maintenance once these -- the infrastructure and parks are built. >> absolutely. of course, the c.f.d., the community facilities district, will be a source of funding long-term for the park's mainls nance. as you know, it does accrue slowly at the beginning soft development.