Transcripts For SFGTV BOS Budget And Finance Committee 52516

San francisco board of supervises budget and finance Committee Meeting for may 25, 2016. Im mark farrell and clar and joined by supervisor katy tang as well as jane kim. We will be joined by norman yee and scott wiener. Want to thank lichbda wong and jessie [inaudible] Charles Kremenak from sfgtv. Silence cell phones and leck trainic devices. Documents should be submit today the clerk. Items will appear on june 7, board of supervises agenda unless otherwise stated. Colleagues we have a lengthy ajendsa. Item 1, resolution approving agreement between state and city combined city project including pedestrian safety, transit impruchbments andue fillty upgrades. Shannon karen from San Francisco public works. Im here to seek approval for public works to intr into agreement can caltrans to 19th avenue. This project features pedestrian and transit curb extensions as well as water and sewer infrastructure improvements. The project extends along 19th avenue which is state route 1 from [inaudible] to lincoln way. The agreement is prerequisite for caltrans. The agreement specifies the responsibility of the city and caltrans in executing the project. The city is the implementing agency fraall phases of the project. Caltrans is responsible for providing Quality Assurance and permit after accepting the plans, specifications and estimate package, the right of way certification, fundsing certification. No funds are exchanged. Public works order march 21, 2015 dweckter of public work recommends approve the agreement to sign the agreement on behalf of the city. Happy to answer any questions. Thank you very much. Any questions. Moouv to pub lic comment. Anybody wish to comment on item 1 . Seeing none, Public Comment is closed like to send iletm 1 to full board with positive recommendation motion by supervisor tang and second by supervisor kim without objection. Item 2 resolution approving the one permanent easement to mu deso for 35 thousand paid by jwgmic heny to bide nl a portion of mchenry avenue. Thank you very much. Good morning. My name is tony borto the assistant real estate director of San Francisco Public Utilities commission. The action before you have is a resolution a easement to modesto paid by jwg mchenry. In addition the resolution also reflects adoption of several funings include ceqa findings, a findsing the conveyance and respect to code 23. 3 the find thofg sale of ineasement through a Competitive Bidding prauls is impractical. The resolution authorizes the director of property or general manager to execute and modify agreements in furtherance of this resolution. I want to justthere isqul i have a drawing that shows what we are talking about. This is mchenry avenue in modesto. These lines here mark the pucs right of way boundaries. Under subservice the puc has 3 High Pressure water lines and under ground voltage lines. The area is in question is the squiggling box. It is the area the developer needs to expand and widen mchenry avenue. When the city of modesto approved this development which is here and here, they required the developer to widen mchenry avenue. They need a little of our right of way to widen the highway. Sfpuc staff and caltrans and modesto reviewed and approved the plan for street improvements includes a subsurface bridge to protect the pipeline. July 14, 2015 the San Francisco Public Utilities commission authorize said agreement for the sale of the easement. Modesto city manager executed this agroument and the city of mu odesto accepted the improvements and an agreement with caltrans. Jwg mchenry provided an appraisal dated in 2014 and updated june 4, 2016 fair market value at 35 thousand. The appraisal was approved by the cities director of real propertyment we ask the board to adopt this resolution and the related findings. Thank you very much. Colleagues, any questions for the puc . Okay, seeing none move to Public Comment. Anyone wish to comment on item 2 . Seeing none, Public Comment is closed. Entertain a motion . Move with positive recommendation to full board. Motion by supervisor yee and second by supervisor tang and take that without objection. Item 3 resolution [inaudible] authorizing the director of Mayors Office of housing [inaudible] Allocation Committee to permit the revenue baunz in a principle amount not to exceed 50 million 455 fell street. Item 4, [inaudible] no cost for aumgz of 6 months until december 31, 20s 17. Thank you don lusty, senior project manager. Before you today are two resolution related to financing and ground lease for new 100 percent affordable fomly Housing Development located at 455 fell street also known as central freeway parcel o in hayes valley. The first resolution is bonds [inaudible] authorizing the city to submit a application for bond financing not to exceed 56 million used for construction financing. The second resolution authorizes the city to enter into ground lease where the project is built. Provides the terms for ground lease that includes 75 year lease term with extension option for additional 24 years annual rent of 10 percent of fair market value determined by a Third Party Appraisal with annual base rent payments structured as 15 thousand annually and the balance payable to the extent proceeds a available from project cash flows. Approval of both resolutions is required for the [inaudible] bond application [inaudible] june 14, it is important to note the baunz are financing obligations which dont require the city to place any money to repay the bond. Briefly, the project will be located at 455 fell as i mentioned earlier. Will be a new 100 percent affordal rental Housing Development in San Francisco hayes valley neighborhood to be financed with tax ex. Bonds 4 percent tax credits and [inaudible] state department of housing and Community Development and [inaudible] funds from the federal home loan bank, a permanent mortjudge and funding from the city. The development will consist of 180 family units earning betwoot 40 and scith percent of ami included a 30 percent set aside for formally homeless families. To be built on the largest remaining freeway parcel, the project is owned by mercy housing and San Francisco Housing Development corporation and include 1200 square feet of retail space on the ground floor, a large central landsscape court yard, roof top open space, community garden, office space for Supportive Service and on site daycare. Provide housing for low income families and formally homeless. We are available to answer questions. Thank you very much. Any questions on 3 or 4 . We move to Public Comment. Anybody wish to comment . Seeing none, Public Comment is closed. Like to make a motion to send item 3 and 4 for positive recommendation we take that without objection. Item 5, resolution declaring intent the city to [inaudible] directorf Mayors Office of housing and Community Development to Submit Application to Allocation Committee to permit issuance of moorejudge revenue bond not to exseat 140 million for 2070 folsom street. Item 7, [inaudible] locate td at 2070 folsom street thank you very much. Mayors office of housing and Community Development is back. Good morning supervisors. I am ann romarrow project manager. I will present resolutions related to financing and option to ground lease of family Housing Development in the mission located near 17th and folsom street. The first is tax exempt bond which authorizes the silty to submit for bond finances in a amount not to exceed 140 million. The second resolution authorizes the city to enter into ground lease with city owned parcel where the project will be built. Mission Economic Development agency and chinatown Community Development were selected to develop the city and it is ideal for housing, it faces south to a park under construction on 17th and folsom. The project includes up to 139 units of Affordable Housing over ground floor using facing the park and include 20 percent set aside for homeless or at risk transitional age use. Also includes a hub on the ground floor that include license childcare and youth after School Programs and services, Leadership Programs and ground floor cafe with public restrooms. We request approval to authorize the skity to apply for the bond allocation and will return to the board to requestissue the bonds in late 2017 when the project is ready for construction. The bonds a conduit finances only. Apply to the the bond allocation the developer must demonstrate site control which is achieved by a option to ground lease the site. The option leads to the ground lease with Standard City terms. That is the term of 75 years with extension option for additional 24 years and annual rent of 10 percent of fair market value with base rent in the amount of 15,000 a year. The project will provide needed Affordable Housing for families and homeless transitional age youth in the mission with ground floor uses and recommend approval. We have representatives from the sponsor here if and center questions for them. Thank you. Colleagues, any questions . Okay. Seeing none open up to Public Comment. Public comment is closed. Motion to send the item forward . Motion to pass to full board. Motion by supervisor yee and second by supervisor tang. Item 7, resolution declaring intent of the city to expenditures from proceeds of future bond indetedness and Mayors Office of housing and Community Development to submit a application to california debt limit Allocation Committee to permit the issuance of rez sidential bond not to exceed 225 million. Item 8, declaring intent of the city to [inaudible] submit a application to the california debt limit allocation city to permit the issuance of residential bond in amount not to exceed 240 million for 1601 mariposa street. Thank you very much. Good morning, my name is adam cray and Bond Program Manager for housing and Community Development. Here to present resolutions for two Affordable Housing projects. These resolutions authorize the city submit a application to california debt limit Allocation Committee. When bonds are authorized they will be issued as conduit debt and nolt require the city to pledge funds to repay of the bonds. The first project 5th and howard consist of 263 below market rate units and 100 percent affordable and mixed income building located at 921 howard street. The below market rates units serve those not earning more than 50 percent ami. The second project, will be 299 one unit mixed Income Project located at 1601 mariposa. 60 units serve very low income house holds and a portion will be reserved for houses earning no more than 40 percent of ami and the balance is reserved for those earning no more than 50 percent ami. Both of the projects the sponsors plan to submit an application to the california debt limit allocation within 4 weeks. Here is representatives fraup tenderloin development and [inaudible] on behalf of the sponsors like to thank you for the consideration and look forward to your support for the very important projects. Thank you very much. Any question for staff on 7 or 8 . We move to Public Comment . Anybody wish to comment . Seeing none, Public Comment is closed. Motion to move forward item 7 and 8 to full board with positive recommendation. Motion by supervisor tang and take that without objection. Is there a second . Second by supervisor yee without objection. With that, call item number 9 please. Hearing on the cities financial position and requesting the mayors budget director and budget and legislative analyst and controller to report. Okay, thank you very much. This is a item colleagues we have as a standing item and dont have anything to work on this week so we will continue this. Continue to the call of the chair but will take Public Comment. Anyone wish to comment . Seeing none, Public Comment is closed. Motion by supervisor tang and second by supervisor yee without objection. We will do a few out of order, calls item 1214. Item 12, ordinance appropriating 207 million to mta for transportation projects and equipment. 13, resolution authorizing the sale issuance and execution of one or more series mta Revenue Bonds in amount not to exceed 207 million. Item number 14, ordinance appropriating approximately 6 million oo support Planning Design and outreach for Capital Improvement projethwith Golden State Warrior [inaudible] thank you very much. We have [inaudible] good morning, thank you for hearing these 3 items. Item 12 and 13 are related to the next sear as of Revenue Bonds which we are seeking approval of the ordinance and resolution. We propose to seek approval of 190 million fund, lightrail vehicle procurement and [inaudible] mission bay Capital Improvement. The fund is 190 million and 1070 mill ynl for lightrail, 48 million for van ness bart and [inaudible] Capital Improvements. The lightrail vehicle is one of our largest projects and we vavariety of Funding Sources to help fund the new lightrail vehicles. The Revenue Bonds are a portion of the Funding Sources and same is true of van nessbert projth. I want to thank you debia newman from budget analyst, did a great job summarizing the bonds. Dont want to bore you details s, so if you have questions happy to answer them. Any questions right now . Okay, mr. Rose can we go to your reports, please . Yes, mr. Chairman and members. On page 7 of our report we report that the estimated total debt service over 30 years is approximatelyim on item 12the Debt Services is 385. 4 million of which 178. 4 is interest and 207 million principle. The bonds will add between 11 million to 16 million in debt service. On page 8, we note that the sfmta will repay the bonds from gross annual revenues which total 626 million312 thousand in 1516 and that is table 7 on page 8 of the report. We recommend you approve the proposed resolution and ordinance. Regarding item 14 , on page 13 of our report we note that according to the Controllers Office when the warriors purchased the 11 acres from sales force in 2015 the sales transaction generated 3, that results in 3 million 50 thousand to mission bay fund. 350 thousand for sfmta increased base line for total 3. 4 million so that one time transfer provides the source of revenues, 3. 4 million for appropriation for arena Capital Improvement for fy 1516 and that is shown on table 1 of page 5 the report. Sales tax and gross receipts tax totaling approximately 2, 310 thousand are projected to be generated for construction the warriors areney in fy 1718. 270 thousand is base line allocation from the sales and gross receipts tax revenues. Provide a total source of revenues [inaudible] and again that is shown on table 1. All of the revenues in the supplemental if they are not generated by warriors sale tax and gross receipts tax is the city general fund would fund a difference so want to note that is a possibility. On page 14 of our report, over 5 year period as shown in table 2 on that page 14, even with the anticipatedgeneral funds contributions to transfer taxes and construction gross receipts taxes and sales taxes, the sfmta will face a revenue shortfall of 34, 508, 573. Sfmta anticipates funding the sort fall through Revenue Bonds and that was the prior item that we just reviewed. As shown in file 6604 and 160465. Request approval not to exceed [inaudible] which includes 35 million of mission Bay Transportation Capital Improvement. The 35 million in the prior item would funds this 34. 5 million projected shortfall. We note according to the the report from the direct of transportation, sfmta will be able to deliver Transit Service to the the warriors project, sfmta can not guarantee future finding for the Transit Service to the warriors project. Accord toog the director of transportation, sfmta supports the warrior project understanding the city, Golden State Warriors and sfmta dont expect advers