Have been less than that. It just depends on the expenditures and what we see in the report. Thank you. Chairman yeah. Im thrilled with this information, and particularly at this level. Thank you. It is really helpful. And understanding the process better is actually really helpful. But since youve got a wealth of experience at other institutions, can i ask a couple of questions about that . Yes. Chairman what are common findings that you see in other bond programs in other cities . And what should we be looking for . I think we tailored this more to what youre looking for. I think the overhead is always a key one that gets put through on the bonds. That was the majority of the findings in this one. So thats really kind of what we looked and focused on. It is similar to other bonds. We see similar findings. Chairman can you explain what overhead is . Um. Is there a definition . Sorry. Yes. So we basically used the definition that is in the bond language itself. So basically anything that is thats salaries for regular staff for the department that are overseeing the bond, is part of the overhead. And anything that is general administrativetype of costs that are not necessarily or directly related to the administration of the bond. What we have found in completing eight audits so far is that departments are very diligent in terms of ensuring that the folks that are actually working on those bond funds, that those bond programs are actually dedicated to them, so there is no mixing of the regular daytoday operational stuff that departments are tasked with, on top of the ones that are specific to the bond. So thats generally how we defined it. Chairman any other questions or comments . Thank you. Is there any Public Comment . Hi, im jerry dratler. I think it is laudable the progress that seago has made in terms of retaining an outside firm to do audibondexpenditure audits. They have been around since 2002, and were finally getting to it. Thats not very good. I would like to see the report include a summary of total bond costs, broken down into what are called hard costs, and commissioner larkin can explain that in soft costs, which are architects, consultants, and project management. And hard costs should be broken down to include change orders and other meaningful subcategories. As you can see from the bond expenditure audit, soft costs are an area for potential abuse, as confirmed by the firm representative. And city departments benefit when theyre able to shift items out of their operating budget into the capital expenditure. So that requires a little higher level of oversight. Thank you. Chairman this is our audit, so if there is any thing you what like to see, now is the time. Call the next item. Item number eight, opportunity for Community Members to comment or take action on any matters within the committees jurisdiction. One is 2019to 2020 seago initiative. Two, other committee business, seago fiscal year 2018 to 2019 report. B, 2019 to 2020 draft port plan. I and your staff person will speak on these yalls, but beforitems,but befor chu, do you want to speak on these items or should i just go ahead . Chairman i have some comments on the second two at the bottom. So the standardized templates, i think weve agreed that were going to this is something weve been thinking about working on for a long time, and we havent. And peg is now going to staff someone on this from her department. Im happy to take that on, if anybody else has any interest, please let me know. And certainly we need to get the public included in that. Thats where were at with that one. And then the expenditures audit, we have the calendar that is in your work plan that reflects when the Audit Department expects to issue the construction expenditure audit, the work that cummings is doing. Well have them on your agenda as soon as they become available. Public finance, upcoming bond issues, anna vendegna is here, who is the head of our office of public finance. She provides a memo, which is something youve had with your forward debt calendar, and tells you what upcoming bond issues are. Ill ask her to comment or see if you had any questions on that item. Chairman thank you. Peg. So we are currently working on a few general Obligation Bond issues. The next two that we see coming in the coming months here or the 2019 sea bonds for clean and safe Neighborhood Parks in the amount of 2. 1 million, and about 93million worth of bonds for Affordable Housing. After that, additional influences that are planned are for the sea wall and Public Health and potentially transportation, as well, following that. Id be happy to answer any questions on our schedule. Chairman so what, generally, is spring 2020 . What month . Its the exact schedule is still t. B. D. , but could be around march. Chairman my only concern with that is that were not in our march meeting hearing about transportation bonds, and theoretically in march, that theyre going out for 150, so im not sure how to solve that. Do you think it will happen . It says t. B. D. It is t. B. D. , and mr. Letty is here and could probably add additional on the schedule, but we can certainly wait until after the march meeting are you running out of money . Chairman good question. So our the only thing that we can really do if a bond is going off the rails is to stop a bond issuance. I dont know if you can say that better than i can, but thats what i would like to know before something is issued, is if we feel comfortable where it is . Ive got no concerns, actually. Im just trying to line it up so that we actually get as much information before it goes out. And 150 million, as you can see with the other ones, there must be something upcoming that you need 150 million in one issuance. Yeah. We work with the project managers to see what their expenditure needs are that they forecast. And before we finally size and prepare the issuance of the bond, we have to make sure that they have a reasonable plan of expenditure for those funds within three years. Thats our standard practice. So we also attempt to try to group the bond sales together with multiple programs issuing. For example, the upcoming sale that director vandegna mentioned was for Affordable Housing and clean and safe Neighborhood Parks and the goal is to group them together to minimize the cost of issuance, and to get multiple programs resofd. Resolved. Typically ill reach out to the Program Managers when we know there is a bond broken, and try to see if there are other programs that also have needs. The plan would be to reach out and validate that. Chairman i get the process. Thats an estimated amount and we find the issuance amount further based on the projected expenditure schedule. And thats a bookmarked amount that i assume would be needed and so well get that further. Chairman good. Sounds good. So that was item c, the bond issuances. And item d, public reception survey, again, for a couple new members, you might recall that during the last fiscal year we worked with you and for you on a survey to test the Public Knowledge of and the approval for and the impressions of two built bond projects. One parks bond project and one street improvement bond project. And we had a lot of good learning out of that and i think that its a really positive experience for you and for our team and the conversation was to do another Public Perception survey of that same type during fiscal year 20192020. I think that at your last meeting or the one before you agreed that youd like to do that test on housing subject to the housing bond. And the the user population, the voter population, the way that those bonds were pitched to the public is different than parks or streets. So what were doing right now is taking some time to understand those dynamics of how those bonds were presented and think what type of questions wed be asking, what user groups we would be testing. How you would test citizen and voter understanding of it since its not as strong a Public Perception probably as either a park or a street use. And so were hoping if we can bring a choice to you before your next meeting and i could do it through the liaison or through the chair, then we might do that. But if we at the latest we would bring you options at your next meeting. So we would choose a couple of built projects from the Affordable Housing bond and bring them to you for discussion and choice about which one youd like to survey on and you could discuss the merits of the different approaches and the choices at your next meeting. Thats where i hope to be. And, again, the way we do this is we write a scope of work, we issue it to a pool of providers that we have who are experts in Public Opinion testing and surveying of a couple of different kinds and let them respond to us, giving us their expertise with sample size, approach, what tools they would use. Wed develop a small contract. They do the work. They deliver us and we help them with analyticals and a report. I would think that the that the population would track, based on the bond, the the areas, lowincome and middleincome housing, you know, those broad categories that we allocated those dollars to from the total bond. Im just thinking out loud. Okay. Um, if theres no other comments on that ill move on to the next item. So other committee business, a, 26r7b a is your annual report. And so this is a report that is issued from the committee that speaks to the work that you completed during fiscal year 20182019. Youve received a draft and i have submissions from several of you as bond liaisons or program liaisons. Content was drafted from my staff to reflect some of your other work. The survey report we just mentioned, the update to your website. You had a draft of this in your packet for your review. Theres a couple of pieces that still need to be corrected, and ill just list them out loud. The road repaving and Street Safety sorry, road repaving and bond and the transportation bond, and the text in your draft is still the last years text. So we need an updated paragraph on that. And the text on Public Safety is still last years text. Since there isnt a current liaison assignment, to that we could just draft a couple bullet points based on the content that was presented to you during the year and leave it at that. Thats one suggestion. Which one are talking about . The Public Health. The 2016 . I think that i provided that. Did you update that one . Yeah, yeah, i didnt change that a lot. Okay. Ill check again. Okay, if not, i can make something work. Okay. And then, lastly, member mcnuty had sent me an updated text on the Whistleblower Program which i neglected to include, im sorry about that. So ill have to switch out with the updated text. And theres a couple items, just line items, that we wanted to put the total amount of bond expenditures under oversight and you have to confirm that number. And theres a couple of links that need to be added. And then, of course, any comments or reflections that you have from your review on it that you want us to change or update, content that youd like to add, edits, please feel free to give me those now and we will work to finalize this report in the next couple weeks. So the draft is completed, but i just want given what i have heard today to make a few changes and ill have it to you by the end of the week. Okay. Okay, just an editorial comment in the in the page that is behind the cover page, when youre listing the Committee Members, miss mckew is listed twice. I also know that theres a place where the fob font changeo it needs to be proofed and, you know, fixed in that way. Chairman any other member comments . No. I followed up and i spotted a couple typos in my own report that i just want to clear up with you. Great. Thank you for your diligence and the text that you provided is really helpful and interesting. So it sounds like, kevin, can you do or brian, sorry can you do the indiscernible the paragraph on the road repaving . Repaving . The 2014. Of course. Okay. Thank you. Hes assigned that. And peg will do the Whistleblower Program and general edits. And then were done. So we can do one of two things. We can either make those edits and bring it back here and then vote on it. But can we vote today, assuming that those five changes or four changes are going to be made . Clerk absolutely. Absolutely. You can chairman i dont want to force anyone into anything. Clerk you can direct the staff to make these changes and then approve it out. Chairman okay. You guys feel comfortable voting that today . I dont. I think we should see the final report before we approve it. Id rather see the final chairman okay. Okay. I dont know if the suggestion was that you delegate that, if thats possible, to somebody on the committee. So that it doesnt have to come back to the full committee. Is that the idea . Chairman would you be comfortable with that . I would not. I would like all members to read the final report before it goes public and to approve it. Im sorry, thats a public document. And, you know, some of us still have to get our reports in and, you know, peg has some things she needs to do. Can we cannot approve it at the october meeting . Chairman thats fine, its completely up to you. Yeah, im looking to the chair as the punish who would give it the final read. But that were only really see something that the chair and the staff feel is pristine and ready to go but im not comfortable having to go public until we all read it. Chairman all right. So we will do that. If i havent received the content that i am promised ill shoot you a reminder whatever you need. The second friday in september at the absolute latest. Great. Chairman thank you. Okay. So and again this is to remind folks that we attached this report, our long report, which is on 18 months bond expenditures which has full information and scope and budget and schedule on all of the programs. So members of the public who are looking to review this subject matter would have, you know, your report in the front and then the long text at the back which is all of the details. Chairman im sorry, can you say that again . We include our report as an attachment to yours. Chairman yes, yes. 2b, your draft work plans. So also including in your packet is the draft work plan that we discussed at the last couple of meetings. And, again, just to remind folks, we set up a calendar of five meetings during the fiscal year and we set up to have a formal bond Program Presentation at one meeting and then in the opposite as much as possible sixmonth mark to that meeting you would have a liaison report on that same bond. So thats the way that the schedule is set up. And we slotted in the Whistleblower Program twice. The c. S. A. Program twice. The city capital plan at your march meeting. And so, again, the floor is open or chair chu or vice chair post might have conditions reflecting on the things that have been presented in the last couple months, suggestions that you would like to make on this. I do. Id like to add the liaison report to the may calendar. Presuming that this calendar will be adopted annually, this will be the set schedule. Thats not on here at all. It needs to go on yes. I propose not voting on this with the set schedule because it tends to for planning. Thats where it belongs, right. And id also like to request specific meeting days, if its the third or the fourth monday of the months listed on the back, august, october, i would like a set day of the third or fourth monday. Yes, they have been scheduled and the room reservations have been made, right, mary . Thats correct. It was made based on five meetings. Right now, do you have them at your fingertips . Yeah, if i can have mary read out the dates. So we have october 21st, january 27th, march 16th, and may 18th. Thank you. I have a question about the whistleblower scheduling. It looks like theres the Program Reports and the liaison reports for both dates. Are we just doing liaison reports on one or both . I think that the process that peg laid out was for bonds. Okay. We have the whistleblower is so important to us that i wanted to have it on there twice if thats okay . Oh, yeah, sure. Its such a rare opportunity for someone to have governance over that particular program. indiscernible . October 21st. Well make sure that you guys get the invitation as well. So regarding the work plan, a couple of housekeeping things. Peter is going to take on the capital plan. So we are going to have the liaison for the capital plan. And peter an will transition the Whistleblower Program from brenda which was very important. We still dont have anyone for the 2011 road paving. Again, im not too concerned about that because everything has been spent, or almost everything. And then all we have left is the park bond. Iis anyone willing to meet with the park bond people between now and october . Because they really are the meat of our october meeting. Anyone . Anyone . Anyone . Okay, thank you. And i also see the seawall in our next meeting and the seawall can you explain the status of the seawall . Ann might know more than i do. Im not much in the meetings on this so if i could ask her to tell us what she knows about the status. The seawall bond has been delayed temporarily due to litigation. You kind of drifted off there location . Litigation. Litigation. So it hasnt been issued, right . Correct. It hasnt been issued and so the projects cant start. Correct. How much notice will we have in the issuance it takes a few months to get this stuff going, right, after the litigation is over . Exactly, yes. So well know, well know that its coming. Awesome. And then, finally, one other housekeeping question and this is if you guys are comfortable our packets include for every bond two things, like the short one thats presented to us and then the big report. Are you guys comfortable with that going out as a link and not being printed for us . But i have to say that brenda did reference it today and so it obviously was useful to have this in the packet. Oh, a hard copy versus electronic . Yes, thank you. Its useful to me as i look at the presentation charts, is there something that i would like to see in more detail, and then i go to the quarterly reports. But, peg, tell us i thought that most of these departments issue quarterly reports anyway. So theyre not specifically doing it for this . I think they do. Im not 100 sure on that. We need to check on the standard oversight reporting of each bond program. But many, if not most of them, do something for commission, for example. And so our thought here, again is that rather than to include a hard copy of every report wed give you a link and you could review it, save paper, you know, on everybodys end. Certainly, as a practical matter at your meeting we could have a hard copy of the latest report if one was wanted. I think that in the distribution packet, i think that mary at least reached out to me to ask if i would prefer a link or a report and i said i wanted a printed report. So you could still have other Committee Members who would not prefer the printed copy to get the link so they can go and to read the detailed quarterly reports. Is that too much work for staff . Id like to suggest then that we all have electronic copies of the report and only have the staff to print and prepare the shorter summaries. Would it really be an inconvenience for us on our computers to refer to the electronic copies . Not saying that we dont want the quarterly reports, the thick ones, with all of the detail. But i think that the electronic copy is sufficient. I dont think that is a matter that we need to vote on. So, mary, can you just take this under advisement when you put these things together . And our materials are posted online and i do plan to eventually, if its comfortable, to move some that are not printed basically. Were trying to save paper. And so if theres a way that folks are comfortable with using some electronic version, that would be helpful in the production world. Chairman great. Awesome. Thats all for the other committee business. Chairman any further comments . Members . Wow. Meeting adjourned. We made it. Chairman are we adjourned . Yes. Okay, thanks. Welcome, everybody. It is such a pleasure to be able to welcome you to our event to commemorate not only the acquisition of 270 turk street and the barcelona apartments, but to recognize the Partnership Among the mayor and city, the San FranciscoHousing Accelerator Fund and others. The barcelona apartment is important, not only because of the accomplishment itself in this building, but also because it represents an important policy direction, and a bigger attempt to address the housing crisis in San Francisco. Please join me in welcoming our mayor and partner, london breed. [applause] thank you, don, and thank you for being an amazing partner in the effort to acquire welding his all over the safety to keep them permanently affordable. Because we know that having Affordable Housing isnt just about new construction, it is about making sure that we preserve existing Affordable Housing, whether its property that we built under the old redevelopment agency, that are in disrepair, or its buildings like this where we are able to acquire it through our small sight Acquisition Program so that we can keep it permanently affordable. Those are the things that are necessary to make sure that San Francisco is a more affordable place for all san franciscans of all income levels. We have work to do, folks. The good news is that in this particular efforts, they basically kept their eyes open and saw that this was an Incredible Opportunity for the small sight Acquisition Program. In fact, even though we are celebrating 86 units here, we know that number one, we have almost we have acquired almost 300 unit so far through this program, theres another 110 in the pipeline, which is absolutely incredible. I am really excited about the future of this program, but a more excited about the 600 milliondollar Affordable Housing bond on the ballot this november. [applause] because it also provides us with an opportunity to acquire more property. I see randy shot in the back. Thank you for coming. We just open the doors to the bristol hotel. Another incredible site here in the tenderloin, and we will continue to do everything we can to ensure that our residents have a safe, affordable place to come home call home. Nothing makes you feel better than to have a roof over your head, to have that kind of security, to know that you will be able to afford to pay your rent. This is not just about acquiring this building, this is about providing a new home for formerly homeless families, it is about providing wraparound supportive services, because we want to not only house them, we want to keep them housed. We want to make sure that they have a thriving existence while they are living in their homes, so sometimes it is just more than a home, it involves making the place feel like home and creating the kind of community that we know we can when we acquire sites like this. So i am very excited because this is like my favorite thing to do, and i think that we need to spread the word more about so many great things that we are doing to ensure affordability for all of our residents in San Francisco, and so i would like to invite you up to say a few words. He is one of the new residents of this incredible establishment come on up and say a few words. [applause] okay, hello, everyone. My name is richard, and i live here at 270 turk street in this building. It is really nice, yeah. I come from cambodia, and i came here quickly and settled down in this building with my family and i feel comfortable. I am happy in this building. I have some people who are from cambodia that live here in the tenderloin, and i am so grateful for this building, for the new owners, for the tndc. Everything, you know, is close, everything. Im so happy, and i will i am comfortable to live in this building. Thank you for everyone coming for today. Thats all i have today. [applause] thank you so much. Thank you. Rebecca foster from the San FranciscoHousing Accelerator Fund. Thank you. Thank you so much. Stories like yours are why we all do this work. My name is rebecca foster, im the c. E. O. Of the San FranciscoHousing Accelerator Fund and we are a nonprofit housing fund that was formed by the Mayors Office and Community Stakeholders like many of you who are in the room. Our job is to innovate smart approaches to Housing Finance that put public, private and philanthropic money to work to fund Affordable Housing. We were created to support important and ambitious projects just like this one. We are a nonprofit developer like our awesome partners at tndc. We are working every day to protect Affordable Housing, but they dont always have the right funding when they need it. When tndc approached us with this project, we immediately understood its importance. A chance to save 86 units and protect 72 current residents in the heart of the tenderloin in an old, beautiful historic building. We knew that if these residents would be displaced, and many of them are longterm teachers, nurses assistance, technicians, restaurant workers, they would likely not find another home that they could afford in San Francisco. To purchase 270 turk, tndc needed 24 million. About 18 million to buy the building, which is still a lot, and about 6 million for improvements to ensure that the building continues to provide a very safe and healthy place for all of the residents to call home. Our partners in the Mayors Office and the great team there will be able to come through with a longterm with the longterm funding for this building, but they didnt have the funds ready in 60 days at tndc needed to compete with market rate buyers to save this building. Deals that are over 10 million are often nonstarters for most lenders, but at the Housing Accelerator Fund, we pride ourselves in being a creative and flexible lender, and even for us, 24 million is very significant, but we knew how important this was, his we rolled up our sleeves and sprinted to raise 50 million in Additional Capital in a few months, working with the Mayors Office, and then working with the Mayors Office tndc and the department for housing for homelessness and Supportive Housing where we structure the partnership that the mayor referenced that is really the first of its kind so that we cannot only prevent the displacement of the current residents here, would also open up 24 units over the next few years so that individuals currently experiencing homelessness can also have really Quality Homes in this building. And not only is that the right thing to do and an amazing way to use the money, it also helped be the piece of the puzzle that helps the financial issue work. We are thrilled that we could step into support tndc and work with the Mayors Office of housing and Community Development to get this project across the finish line. This is really hard work. Deals like this happened really quickly and other small sights projects and they require very significant Capital Resources and a high level of collaboration and creativity and persistence, which is exactly why mayor breed continues to bring together such diverse coalitions of funders like ours to support muchneeded preservation of Affordable Housing. Some of those partners are here. Partners lake city Community Development, thank you, dignity health, the San Francisco foundation, just recently the Betty Ferguson foundation, and Tipping Point communities. We cant do this work without all of those partners, and that we have been able to over the last two years deploy 100 million to enable the preservation and construction of 417 permanently affordable deals permanently affordable units. A very complicated transaction, but like this one at the barcelona apartment projects that are way too important to walk away from. To keep it critical, we are working with the mayor to raise 50 million more in philanthropic and mission aligned capital so when Nonprofit Developers like tndc and the city need a trusted partner for the comp looks project like this, we can continue to stand at the ready. Thank you. [applause] think, rebecca. Thank you, mayor, for your partnership. I want to close with a few observations about why this is so important to tndc and to our community and the tenderloin. The tenderloin, like so much of San Francisco, is gentrifying, and there has been a longstanding fear dating back to the seventies that the tenderloin would someday not to be affordable to people with low incomes. When we buy a property like 270 turk street, one of the things that is really important about it is the fact that it is no longer owned by a forprofit. I want to break that down a little bit in terms of the way rent control works in San Francisco. Of course, under rent control, rent can only go up so much for an existing tenant, however, when a tenant voluntarily vacates, not is displaced, voluntarily vacates, that units rent can float up to market. That means that the next occupant will be higher income household. One can see that when one looks at the rent roll of barcelona apartments, and 80 or so people who live here, the people who moved in recently are paying a lot more rent than the people who moved in ten or 15 or 20 years ago. The key for us is that, number one, tndc can consider we consider ourselves forever owners, so we intend to own this property in perpetuity, and when somebody moves out voluntarily, we wont raise the rent to market. We will essentially freeze the rents and the incomes of the People Living here now for future occupants for generations so over time, this will become more and more and more Affordable Housing. It is a key part of the strategy of the tenderloin housing clinic , the tndc, and a lot of groups here to keep the tenderloin affordable for a group of people with low income. With that, we have a unit open on the seventh floor and i want to welcome people to go open go up to see it. I dont know if you want to take questions, mayor, or if anyone wants to comment. No. Okay. Thank you so much. I really appreciate your being here. Thank you for joining us, mayor. [applause]