Provide comments both inperson at city hall and remotely through webex. Thank you staff and guests who will also be participating in todays meeting. Madam secretary, can you please call the first item . Thank you, madam chair. The first order of business is item one roll call. Commission members, please respond when i call your name. Commissioner aquino. Present commissioner drew. Present commissioner scott. Present. Vice chair ludlam. Present and chair brackett. Present. All members of the commissioner. Present. Madam chair. We have a quorum. The next order of business is item two announcements. A the next regular meeting is scheduled on tuesday, july 18th, 2023, at 1 p. M. Be announcement of prohibition of sound producing Electronic Devices. During the meeting. Please be advised that the ringing of and use of cell phones, pagers and similar sound producing Electronic Devices are prohibited at this meeting. Please be advised that the chair may order the removal from the meeting room of any persons responsible for the ringing of or use of a cell phone, pager or other similar sound producing electronic device. See announcement of Public Comment procedures. Please be advised a member of the public has up to three minutes to make pertinent Public Comments on each agenda item. Unless the Commission Adopts a shorter period on any item during each Public Comment period. Members of the public attending the meeting in person will have an opportunity to provide their comments. It is strongly recommended that members of the public who wish to address the commission fill out a speaker card and submit the completed card to the commission. Secretary members of the public who are joining remotely will be instructed to follow the following instructions. Please. Dial 415 a6550001 when prompted. Enter the access code, which. Is 25907607128. Press the pound sign, then the pound sign again to enter the call. One prompted press star three to submit your request to speak. When you dial star three, you will hear the following message you have raised your hand to ask a question. Please wait to speak until the host calls on you when you hear your line has been unmuted, this is your opportunity to provide your Public Comment and you will have three minutes. Please speak clearly and slowly you will be placed back on mute once you are done speaking, you can stay on the line and continue to listen to the meeting, but you can also choose to hang up if you if you are planning to provide a Public Comment on any items on todays agenda, its recommend added that if youre part waiting remotely to call the Public Comment line ahead of time to allow you to listen to the meeting live and to prevent you from experiencing delays. Todays meeting materials are available on our website at sf oci org under commission. Then the Public Meetings tab the next order of business is item three report on actions taken at a previous closed session meeting. If any. There are no reportable actions. Next order of business is item four matters of unfinished business. There are no matters of unfinished business. Next order of business is item five matters of new business. Consider ing of consent and regular agenda. First is the consent agenda. Five of a approval of minutes regular meeting of june 6th, 2023 madam chair. Madam secretary, do we have anyone present in the public who wishes to provide Public Comment on the Meeting Minutes at this time . If there are any members of the public who wishes to provide Public Comment on this item, please. Call 415 a6550001 and to access code. 25907607128, followed by the pound sign, then the pound sign again to enter the call, press star, then three to be placed in the queue. If youre already listening to us by phone, please press star three. If youd like to provide a comment, wed like to begin by inviting anyone who joined us in person to come up to the podium to provide their comment. If there are members of the public who joined us online and would like to provide comment again, please press star three and your mobile devices as. Madam chair, does not appear. We have any members of the public wishing to comment on this item. We will now close Public Comment and move over to our fellow commissioners for any questions, comments or motions. Do we have a motion for the minutes . Yes, we do have a motion for the minutes. Madam chair. I move that the minutes be accepted as read with any necessary corrections. I would. I second. We have a first and second. Madam secretary, can you call it for the vote . Commission members, please announce your vote for the consent item when i call your name. Commissioner aquino. Yes, commissioner drew. I abstained since i wasnt at the meeting. Commissioner scott. I vice chair ludlam i and chair brackett, i. Madam chair, the vote is for eyes and one abstention. The motion carries. Madam secretary, can you call the next item, please . Next is the regular agenda. Item number five be confirming the issuance of new money tax allocation on bonds as permitted in sections 34177. 7 a1a and 34177. 7 a1b of the California Health and safety code to finance one Affordable Housing obligation in an aggregate Principal Amount not to exceed 30 million and two infrastructure in the transbay project area. In an aggregate, Principal Amount not to exceed 45 million and approving preliminary and final official statements. A continuing disclosure certificate and other related documents and action. Affordable housing obligations. Transbay infrastructure obligations. Discussion and action resolution number 21 dash 2023. Director koslowski, thank you. Thank you. Secretary cruz. Members of the public commissioners. These are new money bonds for transbay projects. Youve seen these projects previously in their design phase. You also initially approved the bond issuance process at a prior meeting. This is one of the final steps prior to the final bond issuance and this item, i think, john, the series debt manager will do the presentation. Thanks, john. Thank you. Director kozlowski. Good afternoon. Chair brackett, members of the commission. My name is john daigle. I am the senior financial analyst and debt manager for oci. So we have two, two, two bond issues here. Basically under our under the same credit. So they will issue under a single offering document, which is one of the key things that youll be approving today. So its 2023 a which is Affordable Housing and 2023 b, which is transbay infrastructure. Its broken into two pieces because one is taxable. The housing and the other is infrastructure, which is tax exempt. Im sorry, its a little hard to see over here. So the enforceable obligations involved here as briefly headlined by the by director kozlowski, are Affordable Housing, 4434 units. We currently have 140. Im sorry, can you speak into the mic . Were its youre muffled. Is that better . A lot better. Okay thank you. Ill stay close. So we currently of those 4434 units, we currently have under construction 140 units and 981 units in pre developer at the transbay infrastructure obligations are required by the transbay implementation agreement. The enabling authority for the two two issues which are was recited in the title. So California Health and safety code. 34177. 7 a1a and. Three for 1. 77. 7 a1b. The purpose of series a is to construct or move. 537 units of Affordable Housing towards construction. Trans bay two east 184 units trans to west 151 units and then predevelopment in trans bay four for 202 units for a total of 537 series b is the tax exempt series and that will finance trans bay block three park the approval process to this point is as outlined here or laid out. So it started in april 18th of 23 when we approved the budget or you approved budget, which included expenditures related to these bonds and then the conditionally authorization subject to approval of the of the bond issuance in march, oversight of board following approval. And then finally, department of finance approved the bonds in april of 2023, the final step will be the board of supervisors final approval of the oci budget, which also includes a an item approving the issuance of the bonds, specifically, we expect that to be available. Its usually in the last week of july and well go to market after that. This is a layout of the source and uses for the bond proceeds as its pretty clear. With the series of bonds, theres 26, 865, which is actually the expected face amount of the bonds and then the that contribute so 24 million into the project fund. 1. 97 million into the Debt Service Reserve fund cost of issuance of about 200,000 underwriters discount of 96 and bond insurance which currently looks like it would be effective, but we wont know until we actually go to market of 592 and then others. Thats basically a rounding rounding number with the series b bonds or theres an expected premium. And that means basically youre selling. 40,000,490 in Principal Amount of the bonds. But because the Interest Rate on the bonds is a little higher, you you get a premium. In other words, they have to pay extra to get a higher yield. And thats a mathematical computation to figure out thats works for us. If that effectively saves us money and it does or we wouldnt do it. And if the day came to sell the bonds and that didnt make sense, we wouldnt do it. We do that under the advice of our Financial Advisor and investment bankers. So in the case of the bonds, is 37 million into the project fund, 3. 98 for the Debt Service Reserve and cost of issuance 300 underwrite discount. 145 insurance again 955 and then one 1000 in rounding at the bottom Debt Service Reserve, if youre wondering, thats a its a cash credit enhancement for the bonds and its sort of what the market requires of a credit at this level. So what it means basically is theres money there. If we had a shortage of revenue to cover, usually about a years worth of principal and interest. So todays item before you is approved, as the preliminary official statement, this is the key document in selling the bonds, and its the only source that investors are actually supposed to rely on from our side, it has to be as complete as possible. It has to contain everything, any material, information, positive or negative, of course. And no exaggerations. Its not a its not a sales piece. Its very factual and its a great compendium of information that will allow an investor to assess the risk of him not getting repaid. Essentially. And youre following that. So this will go out. This is the document that will go out to the investors. Itll be published. And once the bonds are priced, then we know what the numbers are. The numbers will get filled in and that will be the final os. Its very its pretty rare to have any change at all between the pos and the os. There could its possible there could be some change in circumstance, but we have disclosure counsel and underwriters counsel keeping a close eye on anything that happens materially. So essentially what you approved today, minus the missing numbers, is what the os will be. And finally, continuing disclosure certificate, which is essentially a contract between the oci and the underwriter, by which we will continue to disclose every year certain information in the pos. In other words, there are certain tables that will be updated in various statements and summary items that are required to be in that. We do that in by the end of the year and the calendar year in december. Every year we have to do one of those for each one of our seven credits. So yeah, the final actions and will be sometime in the summer, perhaps in august. It depends on the timing of the tax rolls and whether we need to update for that. We will price the bonds and then the bonds will close about three weeks later. Generally so we have a present today to help with any questions you might have if im unable to handle them. We have our Financial Advisor, Sarah Hollenbeck and nick jones from fm, california, from jones hall. We have our bond counsel, juan galvan. Alex chou is our disclosure counsel, whos the author of this boss, david mealy is here remotely and hes the author of the fiscal consultant report, which is about 40 pages of detailed Financial Information on the project areas thats appended to the os from the lead or underwriter. We have kevin chang. Who is attending remotely. Im sorry, we had a last minute change there and from our co co manager, baxter mccauley, we have vincent mccarley. And that concludes my presentation. Thank you. Thank you, madam. Thank you, madam secretary, can you call for Public Comment at this time if there are any members of the public who wish to provide Public Comment on this item, please. Call 415 a6550001. Ad to access. Code 25907607128. Press the pound sign than the pound sign again to enter the call. Then press star three to be placed in the queue. If youre already listening to us by phone and would like to provide Public Comment, please press star three on your mobile devices. Wed like to begin by inviting anyone who joined us in person to come up to the podium. If youd like to provide a if youd like to provide a Public Comment. And were inviting people who have joined us online. If youd like to provide your comment, please press star. Three madam chair does not appear we have any members of the public wishing to comment at this time. Seeing no Public Comments from the either online or in person, id like to close Public Comments and open it up to my fellow commissioners. If you have any questions or concerns that youd like to ask the staff about this item. Thank you for the presentation. Mr. Daigle. I had a question. The staff memo identified three updated risks that were included in the analysis, one related to Climate Change and hazardous substances. And my understanding is for those two were following precedent thats already set by the city and county and their bond issuances. And the third was identifying a risk in declines of assessed values. I think we all we all read the newspaper and see whats happening in regards to folks returning properties to their their lenders or having trouble selling at previous assessed amounts. Also reading the identified number of folks that have the proposition eight appeals in with our assessor was just hoping that staff could provide some additional commentary on the analysis thats been performed and given this newly identified risk so that we can all understand what your what youre seeing in in the marketplace and why it makes sense to proceed in as far as the analysis, i would refer that to david mealy at urban analytics, whos our fiscal consultant. And as far as the markets attention to that particular issue, i would invite our Financial Advisor to speak or our underwriters. Great. Looking forward to hearing from them. Can they can they come up and address that issue . Sure. Thank you. Sarah, why dont you go first. Hi, good afternoon. Sarah hollenbeck, managing director with pfm california advisors. I would defer to david mealy on the question of the analytics that are behind the tax increment projections in the fiscal consultants report, but i can speak to the market norms relating to the risk disclosure pertaining to Climate Change and the what. As you noted, the dynamics of the Property Valuation on trends in san francisco, we just determined in consultation with the commissions disclosure counsel and following excuse me, the precedent that has been set by the city and county in its recent offering documents that it is appropriate to call attention and call out in the preliminary official statements so that investors have that information. Clearly presented to them in the offering document as theyre considering an Investment Decision relating to these bonds that that that those issues are specifically called out and addressed for their review. And consideration is there anything further that. Yeah, i think its helpful to understand that weve done appropriate disclosures in the in the pos, but did just want to understand a little bit more maybe from the Financial Consultant or the fiscal consultant just about what an analyst, what analysis has been performed and how many. Proposition eight petitions are we are we seeing with the city . And if there is just a just to understand the seemingly rapidly changing financial climate . Yeah. So i would invite david mealy to jump in on that specific analysis question. Sure good afternoon. Weve been tracking we have the assessment appeals as of, i think last month was the date we pulled most recently and, you know, keep on on top of it. So we know the number of prop eight, the filings, you know what buildings they are. We wont know much of substance until the rolls come out. The next roll comes out, which would be sometime in july. As john mentioned, for the projections, we assumed just the standard 2 growth rate, which is the proposition 13 minimum growth, last years av growth for the project areas was nearly 6, 5. 8. Of course, we dont know what thats going to be this coming year with regard to things that the stories that have appeared in the press. Were following those one case was a Union Bank Building that that had recently sold for much less than much less than its i dont remember what the figures were, but the amount of the sale was just slightly less than what its cur