tv [untitled] November 27, 2013 10:00pm-10:31pm PST
and even less. it could be down to $50 million. this could give us the authorization to go up to $70 if rates were at a favorable point. the spending authority however on our latest roster is only $40 million. at the time we were preparing that we weren't anticipating this level of bond capacity. that would mean if the department of finance approves that $40 million we can issue bonds for $70 million and put the remaining proceeds under the following roth period if that's what we have left over. the other part of this resolution is to actually go to the board of supervisors because the bond issuance needs to be approved by the board of supervisors and the budget we only asked for approval of
$58.6. to get the $60 million it would require us to go to the board of supervisors to get approval for the bond capacity. this would also direct staff to prepare that resolution for the board of supervisors to increase that. so, if i mentioned this would be the first to our knowledge new money bonds. there have been refunding bonds that have been approved by success or agencies but were not aware of new money bonds. this is probably the strongest pledge agreement that we have that will make it easy for department of finances to approve it because of the requirements in the agreement with the developer with the issue of bonds and the tax increment is fully pledged for this purpose of infrastructure and issue bonds when it's available. so, in order to check in with department of finance, we did have a meeting
a few weeks ago to make sure that they felt comfortable with the process we are going through. we knew they wouldn't prove it on the spot. they did agree that this process was appropriate and these kinds of documents putting forward through you and the oversight board and there was every indication that they would look positively at this request going through to them. so, i will introduce the team members that we have present in a moment. but with the assistance of our financial advisor, we conducted an rfp for underwriteers, the management dell arose an and company and at the recommended writers for this deal. they were on this pool already and authorized pool for these types of activities. the attached resolution would confirm that recommendation. we also under the executive directors
authority we did an rrp. you approved initially the bond council with steve mall with his firm. at that point we also selected self disclosure council bill lofton and he's here today. so just before i introduce the team, the next steps will be that if you approve this resolution today it will go to the oversight board next week and if they approve it, it will go to department of finances. hopefully it will be sooner to offer their concurrence with this bond sale. and we are also waiting for the approval authority on the rocks to expend any proceeds then we can
finalize it and get it to market. we are going total board of supervisors to increase the authority up to $70 million. with that i would like to point out the finance team members that we have in the audiences. bond council we have steve mall khan, joe watson, bob gamble and from the underwriteers jay chasmsky and della rosa. and that, i or the team would be happy to answer any questions. >> do you have [inaudible] laughed >> thank you so much. before we move on to commentary from commissioners, is there any public comment on this item? i
have no sticker cards. do we have any public comment on this item 5a? okay. >> good afternoon, doctors jackson. i'm sorry i was late coming in. i'm not here today to be disagreement to anything that you are to do. i'm here to ask that you and the audience and those that are listening when i go to the store on the streets people stop me and thank me for coming and supporting their community. and i have never asked anything of anyone. but what i'm asking for all of you today to pray for me as i pray for you. pray for
your neighbors, pray for the seniors, pray for our youth and pray for the city. today will be the last time that i will come before this committee. the only thing that i would like to say is that when the infrastructure committee was set up there was laws that was passed. one of the first laws was that those programs that was under the redevelopment agency back in the 50s and 60s be completed. i would like to say that i have came, i never missed a meeting of redevelopment. i went before redevelopment to talk about my church that was built in 1958 and when the role was built in
oak dale, they built it flat. water, when it rained went through the building. redevelopment was supposed to put that church on the hill on the parking lot. that never occurred. we were here before the mission bay and anything else. i would like for you all please, please, don't forget that redevelopment started in 1968 in bayview hunters point. and the work that was supposed to have been carried out has not, has not. i don't feel as though i need to continue to come before this board any other board to plead for you all to do the right thing for
bayview hunters point. thank you so very much and you have a blessed day and don't forget, pray for me and i will pray for you. i have been under the weather and bless all of you. >> thank you. any other comments today? thank you miss jackson for coming today. sorry you are under the weather. okay. questions on mission bay bonds? start. mr. eleven son, thank you very much for your presentation. i think it's pretty clear. there is a list of expenditures that the commission wants to see it for mission bay south. my question is more of a might be a little bit too detailed oriented. i
noticed a role that i hadn't seen much before in my history of reading bond indentures was for a redevelopment consultant. bond indentures will have often different roles laid out for different types of parties. this one seemed to be specifically for the purposes of having a consultant who would write a report if there is a property that may affect the tax revenue available to repay the bonds. i wanted to ask you, can you expand on that role, am i correcten my reading of what that role is supposed to be and also is there an rfp process or did you think it was going to overlap with the financing team? >> well, i believe we can use our existing fiscal advisor as the redevelopment advisor
consultant. you are right, if anything inside that can impair the ability to repay the bonds such as for example the sale of a large parcel of land from a taxable entity to a tax exempt entity that could materially reduce the amount of tax increment to repay the bonds, we would need to produce a report from the independent couplet -- consultant that would show that we have the covering, the capacity to have more than one and a quarter or more than that what was necessary to repay the bonds. so, i'm not actually sure how if our current arrangements with consultants if this would to happen in the future how this would work. >> it's my, i don't think we need to elaborate on it now especially if it's no the a need at the moment but i wonder, i wanted to ask as we
go into this phase of every 6 months when we do this roth for the foreseeable future, we have a property plan and i wanted to make sure that roll that they are closely trying with that. >> we include on every rops for financing for this kind of thing and for other kinds of reports that are sometimes needed on bonds. this is not a very expensive process. it shouldn't cost that much when it needs to happen. >> okay. thank you very much. anyone else? >> yes, i want to know that increase of $11.4 million, why wasn't it done at the same time? >> at the time that we prepared the budget, we didn't realize how large the assessed
evaluation would come in from the mission bay south when the role was publiced. at that time that was the amount. it was actually $35 million. >> at that time you didn't know how much was going to be increased? what was reason? >> well, it was based on the roles at that time and the interest rate at that time and we had not actually we hadn't engaged a consultant to do a more detailed calculation. it turned out to be low. but $70 million is actually now that we are coming back, this is a very optimistic number. so i would be surprised if we reached the full $70 million. if rates went down, it would be possible. it could be in the 50 or $60 million range. this will determine how much we can issue. >> okay.
>> miss mondejar? >> this is a question of the resolution for the memo from the director. the bond issuance is really based on or pursuant to the mission bay south opa. i was wondering if we can get a copy of that and i couldn't find anything under opa. i'm curious since it's tied to opa. i'm asking because i was involved in another project where the opa was tied to the bonds and there was items there that i wanted to look at. if that can be provided to me. i know we have another opportunity to look at this. >> i certainly can and i believe there are links on the website. at anytime anyone can
look at these documents. >> we can provide you the copies and point you to the relevant sections which is the financing plan and the separate tax allocation pledge agreement. >> okay. thanks. >> okay. commissioner? >> i just want to know what are the interest in all this? >> we had a range that was looked at and i believe, so the current, you never know until you actually go market to see how the market views your risks. but, there was, our fiscal consultant looked at a quarter percent rate and looked at what would happen if we get a rate that was a full percent lens lest than that. even that with over $60 million based on
other assumptions would maximize the bond. >> i asked the same question a few months go that anybody can buy the bond, including us. >> yeah. >> yes, publically issued bonds and the rate is a blended rate. >> right. you might want to consult someone before a commissioner would buy the bonds. >> i think we've already discussed this. i this i the answer is yes. okay. does anyone else have any questions about these bonds? please don't leave it to me. i used to work in public finance. i'm not going ask. do you all understand the whole financing
authority structure? okay. great. do i have a motion for they resolution 52-2013. >> i move. >> is there a second. >> please call the roll. >> [roll call vote taken] >> ellington, mondejar, the vote is 4 ayes. one absent. thank you very much. call the next item. item 5 b: update on the status of hunters point shipyard local contracting and construction work force hiring hunters point shipyard project area. you'll >> commissioners, this is a continuation of an item that was on the previous calendar and you asked it to the cal
endar on item. those are subject to our development agreements and our equal opportunity policies that are components of those phase one and phase two development agreements. the purpose here is for the staff and for the developer and it's consultants to really report on the progress, talk about the lessons learned so that we can continue to either meet or exceed the goals. i would like to ask the project manager for hunters point to present this item. >> thank you director. good afternoon, my name is -- project manager for the hunters point shipyard. excuse my voice today. today as you know we'll
be providing the community on the workshop on the local contracting for the shipyard project. i will quickly summarize what the project is. go over the role of the office in community and infrastructure staff and contract compliance as well as good faith efforts. we'll give you an update in the contract of hiring numbers of lot 51 which just got under construction this july and give the shipyard the status report on their hiring effort and contract. i want to produce my co-executive, if you don't mind, stand up. danny. butler of butler enterprises managing the construction assistance program and mr. george bridges from contract compliance of the
agency, oci ishs and the chair of the citizens advisory committee. hunters point shipyard is one of three major approved project on the shipyard and candlestick area. it provides over 12,000 homes 32 percent which will below market rate and 250 acres of parks including complete renovation of candlestick point state park. the project will be developed into two stages having the first phase approved in disposition in development agreement in 2003 and second phase 2010. this will produce 12 thousand construction jobs and provide $90 million in
community benefits. the project broke ground july of this year. the cda will ensure policy that a number of worker will work on the project. this neighborhood revitalization ideas that deepen local capacity that california training opportunities should be located in the project area. with regard to the policy, the dda work goals and hiring goals for construction work are in the employment contracting policy. the dda contracting goals for professional services an construction contracts are contained in ocii small business policy. both the policies have 50 percent goals for the first consideration for project area businesses.
second, san francisco businesses and residents and third for contracting only, only any sbe roles will satisfy the goals. there is no third goal preference for hiring. both make the effort to meet these goals and provide first consideration. both the bayview hunters point the policy have requirements and processes for the developer and contractor to follow. this will get into the role of the compliance and good faith effort. it reviews the monetary -- on our website other government certification for our goals. it's our obi policies towards the certification process local hiring and work force goals.
compliance reviews contracts and the role of the assistance from project management on going oversight of contracting and hiring. the developer must make good effort to achieve the goals in this policies. the good faith effort to design and maximize and standardize the businesses so local economy benefits including efforts of bidding our contracts to the extent feasible. conduct affirmative outreach to make sure opportunities are advertised and holding questions to bid opportunities. following up with sbe's and providing their bidding capabilities. the good faith effort also includes assistance to identify any issue that would have caused this are bid to not be
>> 78 percent contract with spe with $24 million of contract spe. on the phase one vertical process. more than half of them are s pe. the general contractor. for the local san francisco firms and approximately. these lots including construction opportunities and all the trade areas with plumbing and electric. these have achieved
participation. roofing. sheet metal and glass. only about 50 percent of 51 is complete it's progressing. ground breaking excavation. rating skaefgs 18 ensure. the footings has been poured. it's followed good faith efforts steps. we expect their numbers to improve since it's not complete. across the 2 blocks so far it's achieved of that
17 percent of item a: authorizing the issuance of tax allocation bonds for the mission bay south redevelopment project area in an aggregate principal amount not to exceed $70,000,000, and approving and directing the execution of an indenture of trust, and a bond purchase contract, and approval of other related documents and actions, mission bay south redevelopment project area. discussion and actionn resolution no. 52-20133 page 3 of 3 bb update on the status of hunters point shipyard local contracting and construction workforce hiring; hunters point shipyard project area. discussionn cc final workshop on the long-range property management plan pursuant to section 34191.5 of assembly bill 1484 'redevelopment dissolution law'". discussionn dd workshop on the streetscape master plan, signage plan and major phase 1 application for candlestick point; candlestick point and phase 2 of the hunters point shipyard project area. 1234 #2450u8 almost 14 percent are minority owned businesses. now switching to the work force hiring slots for construction, part of the project is 15 percent complete. the subcontractors have been following all the required good faith effort steps with only 28 percent. with that i want to invite mr. danny cook up to provide the commissioner with the report from the developer and after him is butler with the construction program and how it's to be more competitive on the shipyard. thank you.
>> thank you. i'm not sure i want to use the speaker since you are so sick. good afternoon, director and president johnson. committee members. my name is danny cook, the executive vice-president. i have worked primarily in the san francisco bay area since 1980. in fact i'm sort of returning to my original campground because my first project was a united states postal service general mill handling facility on evans. i have also worked with the former redevelopment agencies on the yerba buena gardens and the children's center. i would like to introduce some of my
colleagues that have been involved on blocks 50-51. i would ask them to stand as i call their name and stay standing. cheryl smith is the director of community affairs, she is ably assisted by her project manager terry mitchell and patrick banks is our site development manager for blocks 50 and 51 which is a subject of our discussion today. thank you. robert sub she has been selected as the correct county -- contractor for blocks 51, 50, and 54. the blocks are being awarded to 84 percent.
there is still some contracting to be done. 53, 54 has just been bid and has 0 awarded yet. in spite of complying with our good efforts, we have not yet met those goals as outlined. we take the responsibility very seriously and evidences with our commitment on our professional hiring that we had a 78 percent grade bond. we are committed to improving the vertical construction participation goad forward, but we must learn from block 50 and 51 because what we can learn there will benefit us in the future. blocks 50 and 51 were the first vertical construction
projects out of the gate. for various reasons, they were bid, but did not proceed. we feel that there was this created a bit of complacency in the marketplace. and there was fear that there was another bidding exercise and subsequently did not go forward. we believe the fact that construction has started, the mitigates are concerned. the lesson learned for us is that schedules communicated must be schedules delivered. our communication process on the multilayered facet of it really needed to be improved. we have had discussions with all of