reviewing, providing and considering these project changes. [applause]. >> finally, i again want to echo the director thanks to the amazing team at ocii who worked on this important project. it was really a great example of team work across the agency, so thank you team. and thank you, commissioners for your patience through this. we are here, staff is here, development team members are here to answer any questions you may have. thank you. >> commissioner mondejar: oh, my goodness. thank you. a lot of work. [please stand by for captioner switch]

should be increasing that number.

do not accept the changes without an increase in b.m.r. units. also add when they talk about the ecogrid, a lot of things they talk about, i was told as a visionary of the shipyard would be delivered with my building. i bought before my building was fully constructed. those things are not included in my building. do not believe the ecogrid unless it's written down that lawyers cannot get around, otherwise they will get around it. i will also add that, and this is not necessary five points the navy clean-up is delaying stuff. you have time to make changes, to make sure it's correct and done right. so i encourage you, take one meeting, get higher b.m.r. unit rates for us. and also, north side park is ready to be developed today, basically. i have 18 more seconds. >> ok. >> and so i want to make sure that we are transferring over north side park now rather than waiting, it can be built, it's something that will be an amenity for the bayview-hunters

point as a whole. >> neoala. >> good afternoon, commissioners. my name is neoala ganz, i'm here to say i support the amendments of the hunters point shipyard and candlestick project. i'm excited about the benefit the district will have like housing, education, and jobs, and so again, i wish that you guys approved this amendment. thank you. >> thank you. >> joyce. >> good afternoon, commissioners. joyce armstrong. i'm president, proud president of the public housing tenant association city-wide and a member of the c.a.c. these amendments are not only

good for district ten residents but good for san francisco at large. provide 50% more permanent local jobs for a total of approximately 15,500 permanent jobs, 56% more construction jobs for a total of 10,700 construction jobs, and 47 million in net general fund revenues which is nearly three times that of the 2010 plan. approving the amendments of this plan is the economically responsible thing to do. i support the changes and i am asking you to support them through approving the plan. thank you. >> thank you. >> dorothy, and can i have the following members of the public line up in this order. reverend a. walker, dr. carolyn scott, roberto, and lottie. >> hello, commissioners. dorothy kelly. i'm a proud member of the

bayview-hunters view and these are my friends, we have lived in the bayview most of our lives. and they have been working on this plan over 20 years, over 250 community meetings have been held to receive feedback on the plan and the hunters point citizen advisory committee has vetted the details with the input of community residents. in addition, the voters of san francisco, not just district ten, have approved these amendments twice through approving prop g in 2008 and proposition 0 in november of 2016. for all the reasons i encourage you to approve and support the amendments to this plan. there is no valid reason not to. thank you. >> thank you. reverend a. walker.

>> madam president, honorable commissioners. i pastor the true hope church god in christ at 950 gilman and bayview-hunters point. and representing the tabernacle community development corporation, been around about 25 years. we produce approximately 600 low income housing in the last 25 years. i myself want to let you know these groups that i represent approve the addition after this plan. one is, it's exciting because when this total plan was approved as you know, we start redevelopment agency and lenor, we talked about it there, now it's switched and changed, which

is great, to the o.c.i. and one of the things i'm excited about in the process everywhere i pastor, 504 units developed by the, a group that's in charge of that and tabernacle is working with that. so in terms, i'm looking forward to this extension because one of the points made that -- low income housing, appreciate and looking forward, supporting you and continue this plan to come to fruition. thanks very much. >> thank you, reverend. >> reverend dr. caroline scott. >> good afternoon, commission. i am a native of san francisco

and i serve the community as an inner city missionary, have served since 1969, but a resident of bayview-hunters point 1950, i saw the rise of the community, the decline, and now a witness also of an opportunity to see the revival of this community, the redevelopment of the community, the regeneration and all of the opportunities that have been stated. i also have the dream and see the dream and would hope you catch that with us. join us in that dream and approve of this opportunity. and the project. >> thank you. >> roberta.

>> thank you, madam chairman. in addition to being a ten-year long senior advisor in community development to now five point, formerly lenor, and working ten years on this project in its various refinements and iterations, i want to attest as a san francisco community member the authenticity of the community process that has been undertaken by five point and discharged very faithfully. i have attended more than 1,000 community meetings in my capacity as an advisor to lenor and then five point. as a member of this community,

as a former member of our county board of supervisors, as a former clinton administration housing official, and in many of my former capacities i'm proudest of my current capacity, and that is as a community member working with other community members in the bayview neighborhood trying to rebuild in an authentic and constructive way our proud community. this plan as a revision of the prior plan builds on strengths and makes the approach even stronger and i would urge this commission to adopt this very thoughtful plan as we go forward into the complete revitalization of the bayview neighborhood. thank you very much.

>> thank you. >> lottie, and the following members of the public come up in this order. sheraton, chad, c.c., linda richardson. >> good afternoon. thank you for having me, commission. first i would like to thank you five point and the c.a.c. for allowing the residents to have a voice to listen, and to work closely with us in order for change to occur in a community that we all love so dearly. as a long time community resident i'm excited about the changes to the plan. there is something for everyone. below market rate housing for seniors, marker spaces for microenterprises and small businesses. additional open space and continued delivery of community

benefits such as numerous initiatives and job training, youth development programs for seniors, environmental, health and wellness and the list goes on. i support the plan and i am asking this commission to join me and approve the amendment. thank you for your time. >> thank you. >> sheraton. >> aloha, my name is sheraton, with green action for health and environmental justice. and i notice i'm really grateful there was a reference to historical preservation of the shipyard, because it's history that we are led to remember and to remind everyone in this room that we are talking about a super fund site. that is placed on the national priorities list as one of the most hazardous and contaminated sites in the country. and i take that very seriously.

and for years people were told it's fine, the remediation process is fine. but it is not. millions of dollars were spent only to find out it was a botched clean-up, whistle blowers have come forward and to this date, as of december 27, 2017, the e.p.a. through the navy wrote a letter and said wait a minute, it's more than 40% falsified samples. looking at 90 and 97% of two of those parcels. why am i standing in front of you? we need to make sure before we talk about any amendments approved or redevelopment happening that the entire shipyard is, goes through a comprehensive retesting of all those parcels, including those that have already been transferred to the city, fair for the residents in this room and all of those workers that are currently working there. and i also want to remind

everyone to rethink water. we do not understand sea level rise and when you leave contamination in a site and tap it and then you expect babies and things to crawl over it, that's not ok. we build a wall but it creates a tsunami effect. we need to consider all of these things before we say yes to anything. and that is no -- there is no price, there's no market value, no one should be living on contaminated lands at any cost. >> thank you. >> thank you. >> chad houston. >> good afternoon, my name is chad houston. i work with local 261. i'm sure you have heard of the work we do around work force development in creating jobs for local residents. adopting these amendments helps us do that as we have been working with the developer and

we want to continue to have a pathway to create not just a job but a career for individuals through our apprenticeship program. thank you. >> thank you. >> c.c. lawrence. >> good afternoon. main corporation of the new dog play areas, adult exercise areas, and open space 326.6, and accommodation of families in the shipyard. this in addition to all the other improvements made make the plan better than the last one. we need to move this process along so we can see the concepts realized in our lifetimes. i encourage you to support the amendments to plan. thank you. >> thank you. >> linda richardson and can i

have the following members of the public come up in this order. oscar james, dr. veronica honeycut, and ace washington. >> linda. >> she's not here. who is the next one? >> oscar james. >> mr. james. come on. >> good afternoon, commissioners. my name is oscar james, as you all know. i'm a native resident of bayview-hunters point, been there 71 years. and served on a task force for the close of the hunters point shipyard. you know all of that time, since 73, we have been looking for a developer to come to the hunters point shipyard and develop.

and before i was against lenor project coming to the hunters point shipyard. since that time, in 100% support of them for what they have done to better bayview-hunters point community as a whole. so i support this project 100% but i do have my problems in some areas. one, the native residents in bayview-hunters point lived in the project areas have to have first priority on any opportunities for business opportunities in hunters point shipyard. to supersede anyone who has came into our community in the last, i say, the last 30, 40 years. there's people who have been out there all their lives who have been denied employment, been denied opportunity to start businesses and i think this particular project should make sure those peoples who have been

in those projects, low income housing and what have you, have first preference in training, ok, for set aside anchor bay program to go into now to train them to open businesses for the future. ok. if we don't start now, they won't be ready in the future. also i think it behooves this committee to make sure project managers in these new projects come on at bayview-hunters point. they can be trained, o.c.i.i. has trained peoples before. i know for an example, train people to be property managers and i think that program should come up before. i'm not going to take up no more of your time. i have four more items and i will be back up to continue. >> thank you, mr. james. >> good afternoon, good see all

of you, good afternoon. director sesay, president, and fellow commissioners, always good to see you. i am dr. veronica honeycut, the chair of the citizens advisory committee and i want to remind you that the c.a.c. members for the shipyard have diligently reviewed all of these amendments and related materials. we have been looking at this, one very wise woman said you've been looking at this for 20 years. and it's the truth, because we have some members who go back that far. and certainly a lot of us that are there now have been looking at these matters. we have looked at it for the last eight months intensely in bits and pieces and the final two meetings, opportunities to review everything. the changes and improvements will yield great benefits for the bayview community and for the city and county of san francisco. and namely, talking specifically

about the below market rate, housing opportunities from 0 to 160% of a.m.i. i'm also talking about the educational opportunities. i'm extremely excited about these educational opportunities. you all know that i was a former educator and still educating as life goes on but the opportunity to have a new stem or steam school is critical. rates are not good for african american and latin students in terms of educational opportunities in some of our public schools. we need quality. and so finally, i just want to say to you, as our other c.a.c. members have indicated, we approve this plan. we urge you also to approve this plan and thank you very much for this opportunity. >> thank you.

>> well, well, well. i guess i put my card up there first but i know how y'all fix that stuff, it's ok. i think you did a good job putting me right after dr. honeycut so i could tell what's on my mind. i'm supporting the project, i didn't come up with no script, prescripted, most people come up with prescript or s.m.s., i'm not going to tell you what that means, they know nothing about it. like james, i've been around 20 years, i mean, look, y'all, dog gone it, i'm 64 years old, god gave me another birthday. i'm just about as old as the rest of these old people, been here 20 years. but the bottom line, and let's talk bottom lines. he's talking about bottom line of his money. i'm talking about bottom line for the community.

kofi, i'm supporting you, disregard what i'm saying. i'm supporting, i want y'all to know that. but i got the microphone, one more minute left. like i told y'all before, makes no difference, you are going to see me enough in these meetings, i'm getting gray, blood pressure is coming up because i have to hear the lies, they may not be lies but they think it's the truth and they are telling everybody else. on that c.a.c., i'm going to tell you. c.a.c. needs to be revamped. needs new blood on there. you got people on there 25, 30 years, what the hell are they still doing on there? they don't study this, come up here and rubber stamp something. yes, i'm here, see, they could not do it in the west edition, they closed all those, because we were not going to go for all that b.s. in the field, no more. but i'm y'all on three street, don't y'all repeat what they done do the fillmore street. it's going to happen whether you

like it or not. i can't stop the train. but when they started the pit stop, see who is in the conductor -- hold up, hold up. my name is ace, i'm on the case, i'm with you, kofi. >> i will now close public comment. fellow commissioners, questions, comments? commissioner. >> i have a couple of questions, comments, you know. >> should we bring up stanley? >> yeah, ok. i see that there's a no cost to the agency, 0, right? >> so, are you referring to the changed agency costs? >> uh-huh, uh-huh. >> yes, so, the agency costs are reimbursed by the master developer. the percentage of overhead costs has been adjusted. it has been increased, it did not -- it was 65% of overhead costs were previously reimbursed and then over the next few

years, it will increase up to i believe 185% to cover our overhead costs. >> uh-huh. ok. and what do you mean by parking, less than 1.1. >> so, in -- if a building does not have one parking space for each unit, the way that the b.m.r. housing plan is written now, is that priority for the inclusionary and work force unit tenants or homeowners go first in collecting that parking. in the order of their unit size. so, largest household units go first, so, four bedroom or three bedroom units, then two bedroom, one bedroom, etc. that's an existing requirement. and what we heard through you've been hearing in updates to the commission and our work and understanding the certificate of preference program that parking is a need of that population.

we also understand they tend to be in smaller household sizes. so, without giving them the same preference as a large household size, they would be the lower priority so we are moving them up on that priority list. for parking spaces. >> four bedroom will get 1.1 -- >> it -- each building has its own parking ratio. sometimes it's a .6 to 1, .3 to 1, it depends on which building. if there is less parking spots than units, they need to be allocated among the residents. >> but there are parking lots also, also parking lots. [please stand by for captioning switch]

>> thank you. all right.

>> commissioner mondejar: commissioner rosales? >> commissioner rosales: thank you. i want to congratulate the staff for a very comprehensive report and everyone in the room for coming and sharing your views. this is the kind of feedback that i as a commissioner find important before i make my decision, and it sounds like the process has been in depth, thorough, lengthy. the fact that so many people can come up and speak directly to the issues says something to me, so that gives me comfort. the top issues that i have, they're not new. i just want assurances on the transportation plan. the comment about workforce development starting today or now, i've said that before, and in prior hearings. the construction industry is robust, there's lots of jobs now. we've got to start thinking

about transitions folks who are not in ux skr, particularly, but those who are in construction to other jobs. if folks want to work in their own neighborhood, they should be able to have, in my opinion, first preference, not just for jobs but for training, certainly. and on the business side, small business development, it's one thing to be an entrepreneur in construction and in professional services. it's another thing to be an entrepreneur in retail or neighborhood services. you know, being a local grocers, you know. those opportunities, i think, need to be explored. i don't want -- if i'm around to see it, that this neighborhood doesn't develop in the way that it's being promised. i mean, i'm not a member of the former redevelopment agency, but i carrie, if you will, the weight of that commission's --

i hate to say it, malfeasance, in my opinion. my father played jazz on that street, and i don't have that experience as a san franciscan, anymore, walking the streets of the fillmore, so i want to see the hunters point thrive in all of its glory. so i'm trusting mr. kofi and the developer to do what they say they're going to be doing. with respect to housing, i love the idea of accelerating the housing component for senior housing in particular, and i've said this before, and i'm just repeating myself. we have a population of historically displaced individuals in this city, predominantly african americans, certificate of preference holders. we have a survey. we championed as a commission that survey. i want to sure make we learn from the results of that

survey, and i've mentioned to mr. kofi, and to the star, the desire and the need to connect the population of the certification of preference holders with new and emerging and almost present opportunities for housing. people should stay in their -- in district ten if they want to stay. if they want to come back home to san francisco because they're outside of san francisco, they were displaced, we have got to bring people back home. [applause]. >> commissioner rosales: thank you. i would say that commissioner bustos is the one thatt that enshrined us as the we want you to come back home. we are also home as the committee on community investment, a name that was given to us by our dear late mayor ed lee, focuses on the investment side. neighborhood services, i love the idea of a maker space and

obviously the community space, but i would want to see the maker space also be neighborhood centric. i don't think those two things are mult welly exclusive, yes, there could be outsiders, if you will, to the neighborhood. i know there's a lot of -- sfmade has a lot of vendors who are in the bayview-hunters point already, but that's the kind of activity, if you will, that should be encouraged. and then, last but not least, i continue couto be worried abou the environmental issues. i've asked at least five years in a row about this topic. given that we have some new information, can i -- i'd like to hear a little bit of a reinsurance or commentary by the department of health on that, and then, i can ask a question on the planning -- i'm sorry, on the transportation plan.

>> yes. amy brownel from the department of health will speak to that matter. >> thank you, commissioner. directors, commissioners, good to be here. as you know, i've mentioned many times, i'm an environmental engineer. the san francisco health department has been reviewed the navy's cleanup and the regulatory's agency's oversight of this cleanup for almost 25 years. we have been made aware of the matters in the news. we are very distressed that such fraudulent behavior against all tax payers may have occurred. however, based on briefings from the navy and our own review and consultant's review of the documents from the navy and the regulatory agencies, we have no evidence to contradict the navy's assurance that the safety and health of the residents, tenants, workers or visitors at or near the shipyard remains protected.

the u.s.epa has written in letters that have been on -- there's one on your own web side about these insurances that there are no health and safety issues. we will continue to monitor the situation and protect the health and the residents of san francisco to just get into it a tiny bit because it's very complicated, the list's latest round of news media. it's very exciting for me. they have dove into the details of discussions among regulatory agencies in the navy, and unfortunately when they attempt to do that, they don't necessarily report the bigger picture, and the bigger picture is the navy has already agreed to address the issues that have been brought forward. they're going to do a -- and they have assured us on various occasions, they just assured again, at a public meeting last

wednesday, about a proposed plan for parcel f. they insured the public at a january 31st meeting that they will be relooking at all of the areas with this allegation of falsification, and none of the land that the navy currently owns is going to transfer until this has been resolved. there have been assurances and letters written back and forth from all sides that have assured that. so unfortunately, yes, it is causing a delay in some of the land being transferred, but the assurance that there will be this protection and there are no problems will continue until they have resolved the issues. >> thank you. thank you. so i -- my question on the transportation plan is more on the implementation, because again, you know, without robust multidisciplinary, if you will, transportation networks and connect activi

connectivity, we're not going to be able to connect bayview-hunters point to the rest of the city and folks to go back and forth. so is that a developer function, is that an oversight? do we have oversight we as a staff, of the oversight of that transportation implementation plan? is it designated to sf mta. >> you know, i'd like to ask chris mitchell who is a transportation expert and has been working this plan for many years can answer all your questions. >> okay. great. >> thanks. good afternoon, commissioner and the rest of the commission. so your question is about implementation. again, i'm a consultant, we work very closely with mta and planning department and ocii to come up with an implementation plan to ensure that the level of implementation of transportation including roads and roadways projects but also transit and transit projects correspond to the level ofs improvement so we've got a

about correspondence. in terms of who implements it, there are certain obligations that five point has to fund the construction of some of the infrastructure but mta and department of public works, potentially the city is responsible for essentially constructing and implementing the improvements and enacting the service. >> and they're in conjunction with ocii? >> i'm not sure how ocii works. >> mta is responsible for the oversight of the public transit network, so they are responsible for muni, bus lines, bus rapid transit, etcetera. >> but i guess the question is, in partnership, because this is a development plan, so you leave it to sf mta without any collaboration. >> so the obligations of the developer as written in the transportation plan are a part of our agreement. so for what the developer is obligated to do. >> yes, yes, yes. >> but the overall transit, obviously, mta plays a very

significant role in managing that. >> right. okay. i think that answers. >> thank you, commissioner rosales. commissioner bustos? >> commissioner bustos: >> hallelujah. i want to thank the staff for working so hard with so many different departments and groups and entities. i want to thank the cac for members of the community who have been at this for a very, very, very long time. the promise is on its way. i want to thank kofi and his staff for being open to think about the changes and the change in climate as well as in market forces and to think of things in a creative way to make it work. i understand that there's still issues that's still out there, issues that are of people's concern, whether it be the

environment and will land and all that stuff. and i don't think we're going to forget about that. i think there's still a lot of work that needs to be done, and i think we have professionals, as well as community members that are vigilant about that that want to know that things will be okay. but i think what we're doing today is approving a vision. you know, when it's thinkable, it's doable, and i think that this vision that we're creating is something that the community has asked for for a long time, and that we have promised and in some cases have lagged on that promise. so we're voting on the vision, and i'm excited about this vision. but i'm only excited about this vision if it includes the community. i was in the commission when it was redevelopment that voted for this, and one of the things i said, it's not just about

approving the erection of a building or several buildings, but it's how you lift the community up at the same time, and that's the vision. that's part of this vision of these plans of these grids of these streets of these grids of these mockups of these buildings, is how we're going to get the community involved? because that's the win, win, win, win, and win for everybody. and so i see this vote today as a step getting towards that. you know, oscar james, once again, hits it right on by saying we can't forget the community that was already there. we have heard a lot from people who have just moved in. that's not a bad thing, but it's almost to sort of -- the way some of it's -- not just in this meeting, but it's almost as if there was no one else there. it's like christopher columbus discovering america, and now this is what i want for me. and what i haven't heard from

new people is what the lifelong residents have asked for, and that triggers and tells me that no one is talking to them. and so i say that i know, and i sometimes talk like a nativist, because i am a native san francisco, but when you've been around almost 50 years, and there's some that have been around just a tad longer, you realize what is the most important in life, and the community that has been there, that has struggled deserves to get first dibs. you've heard that from our commissioners here because it's only right. it's not about preference, it's about making up for lost time. and so i think that -- [applause]. >> commissioner bustos: you know, i'm confident that our development partners will understand that and feel that. i know and i'm confident that

our community members will hold all of us, including us accountable, and i'm also confident at the end of the day, this is going to be something we can all be proud of. it's not perfect, but tell me in life what is. as we're moving forward, i'm glad we're here gauze we have a vision that still needs to get little tweaks that need to get through, but if we do it together, let me tell you, there ain't no mountain high enough, so thank you so much. >> commissioner mondejar: thank you, commissioner bustos. wow. i think they've said everything that i wanted to say, so i keep crossing out my cheat sheet here. but first of all, i want to -- i want appointed as a neighborhood commissioner, so i -- and so my heart goes out to the cac, dr. honeycutt because they are the ones who really, point by point, point by point, you have all these meetings. i know because i get the

announcements, and thank you for doing that. because you are the -- you're the group that really makes sure that. things that are needed by that -- by the community are being addressed. i know it's been difficult, it's been a number of years, but to make sure that the vision as commissioner bustos said is carried forward because i believe what we're doing is building community. and so i wawhat i want to do i thank or staff in reaching out to our sister agencies because i know that has been difficult. these are major changes, major change that's have to be really looked into, and make sure that all of the city agencies that we work with, make sure that we

all work together to make sure that all of these changes are implemented effectively. i've been in many of those briefings, and many of my own concerns have been responded to and answered. our developer, kofi, thank you for being here, and i appreciate your openness and listening to the community. it's not perfect, and i know there's still a lot of feedback, but i appreciate the openness and the

i've -- i believe that -- and i'm confident that we can move forward, and that many of these concerns will be responded to and -- and answered. so for now, fellow commissioners, i have many items here, we need to break it up. i need a motion for items 5 b through d, by as -- b as in bo. commissioner singh, you will move and commissioner rosales, seconded, so madam secretary, please take the roll call. [ roll call. ] >> clerk: madam chair, the vote is four ayes.

>> commissioner mondejar: motion carries. [ roll call. ] >> clerk: madam chair, the vote is four ayes. >> commissioner mondejar: the motion carries. [ roll call. ] >> clerk: madam chair, the vote is four ayes 6789 monday mopd t --. >> commissioner mondejar: the motion carries. commissioners, can i get a motion to approve 5-e as moved by commissioner bustos? >> so moved. >> second. >> madam clerk, can we get a

vote? [ roll call. ] >> clerk: madam chair, the vote is four ayes. >> commissioner mondejar: so this motion carries. so now, fellow commissioners -- [ inaudible ] >> commissioner mondejar: whoops, hang on. i need a motion for items 5-f through g, but we will vote separately on each items. >> so moved. >> commissioner mondejar: commissioner abuse toes moved, seconded by commissioner singh? mad madam secretary, please take the role call. [ roll call. ] >> clerk: madam chair, the vote is four ayes. >> commissioner mondejar: the motion carries. [ roll call. ] >> clerk: madam chair, the vote is four ayes. >> commissioner mondejar: motion carries. okay. thank you.

[applause]. >> commissioner mondejar: madam secretary, please call the next item. >> clerk: the next order is business is agenda item 5-h, workshop on ocii's fiscal year 2018-2019 budget discussion. >> commissioner mondejar: let's wait a few minutes for people to exit. we're going to be talking about the budget.

>> no one wants to stay for the budget? mobbed mond >> commissioner mondejar: you don't want to stay for the budget, our money?

except our staff. so thank you, madam secretary, did you call the item? ill a turn it over to the chief financial officer to present on the budget. >> good afternoon, commissioners. my na i am the deputy director of finance and administration, and today we're holding a workshop to talk about our proposed fiscal 18-19 budget. as typical, we always hold a workshop prior to our budget action so that we can take commissioner feedback. today, we'll be talking about

the operations budget, the department service budget, the budget for each of our three major project areas where we'll focus on infrastructure, and then move onto the affordable housing budget and talk about the budget for development services and asset management. following today's discussion, we will incorporate your feedback and see you again on may 1st for the commission action. pending your approval, we will be submitting our budget to the mayor's budget office where they will review during the month of may. subsequent to our negotiations with the mayor's budget office, they will submit the proposed budget to the board of supervisors in june, where we will present to the board of supervisors and the board will take action in july. so before we launch in to talk about the 18-19 budget, i want to spend a brief minute briefing some of the amazing

accomplishments that we've had in the past year. it's been such a great year. it was actually really hard to find a way to fit it onto three short slides. so in the shipyard, as i'm sure you'll remember, we're moving right along. we completed some market rate housing and some inclusionary housing and we also completed our first public open spaces. in shipyard two, we just had the biggest action of the year 30 seconds ago. we passed the documents -- the planning documents necessary for the phase two redesign, and at candlestick point, we completed the construction of alice griffith three, which was very excited. and in addition, we approved some designs for market rate and inclusionary housing which means we'll have some additional market rate and inclusionary coming on next year. in mission bay, we completed 350 residential units on block one, and we completed office space on block 40, which is the kilroy project, and a 250 room

hotel, which is the soma project. in transbay, we began construction at block one, which is the tishman spire project. we completed construction on block seven, which was the mercy project, and we achieved 100% occupancy at block six, which was the gollub mercy project. we're moving right along on our approval of open spaces, we approved the under park ramp schematic designs, and we submitted our designs for the folsom street design construction. in the world of compliance, because remember the fick of year 17-18 isn't over yet, we awarded $91 million in contracts in small businesses enterprises, and we monitored the construction workforce of 8,000 workers performing nearly 2 million hours of work, 18% by san francisco residents. in development and services and asset management, we have a

very large transaction that we anticipate completing before the end of the fiscal year, and that is the much awaiting transfer of yerba buena gardens. in affordable housing, we completed a detailed survey of certificate of preference holders. we increased the outreach and marketing preference to c.o.p. holders, increasing c.o.p. housing by 41%. and most excitingly we moved 1,769 units forward in the housing pipeline. and what that looks like is 720 units entered the predevelopment phase, 596 units came under construction, 213 units entered the marketing and for sale phase, and we completed 240 units for a grand total of 1,769 units, which we

estimate will estimate approximately 4,000 people. so now to talk about what we plan to do next year, our proposed fiscal 18-19 budget 479.9 million. prior authority is authority approved in a prior year, and those are generally financed by bond pros, which we then have to payback over a number of years using property tax. [please stand by for captioner switch] and then any work that

is related to, that is an enforceable obligation but does not fall into shipyard, ybc, they tend to planning in the b.i.t. area or asset management and we'll spend the rest of the presentation going through the budgets for each of these cost centers in a little bit more detail. so, as you can see here, in this chart, if you look at the operations column, we spend in terms of agency costs, $8.6 million and we allocate, if you look at the top row of the uses, $7.7 million of expenditure out across the other cost centers, for a total expenditure of 16.3 million, and we'll go into a little more detail on that now. so, in terms of our operations, our operating budget is

$16.3 million. that's composed of $8.6 million in salaries and benefits for staff, $4.2 million in nonlabor expenses and $3.5 million in retiree, pension and health obligation and we'll talk in more detail about those expenditures later, and funded primarily by property tax or, of which there can be two kinds. there are a.c.a., the property tax that we have to spend, that -- that our operating costs, true administrative costs have to be limited to the property tax that we refer to as a.c.a., which is limited by state statute and we'll talk about that a little bit more next. and then property tax that is related to funding and enforceable obligation rather than administrative cost. for the rest of the budget, those are funded by other revenues, which are primarily other developer reimbursements

or lease. so, just a reminder of the a.c.a., as you know, redevelopment law limits the amount of money that an agency can spend on its own administration. post dissolution, the majority of our funds are supposed to be spent on direct expenditures, enforceable obligations or wind down activities. and state statute says that we look at the prior year's distribution of property tax. subtract the administrative costs from that year, and then multiply by 3%, and that tells the agency the amount that it can spend on operations in the budget year. and this year, that's 4.6 million. so, i'm sure that you have noticed that in a $16.3 million operating budget, $4.6 million does not cover that entire budget, and so obviously we have to identify other sources to cover those costs. and this