Community Investment and Infrastructure, Commission - Regular Meeting

And my name is Dr. Carolyn Ransom Scott. And this is a regular meeting of the Commission on Community Investment and Infrastructure for Tuesday, January 20, 2026. I'd like to welcome our new commissioner, Commissioner Massa. And I want to thank you. for answering the call to join us and just tell you to sit with us and become a part of all that's going on with our commission and learning and living and causing the growth and development of this city. So we have our new commissioner, Masa Hakimi. and we're all welcoming her. I'd like to welcome everyone else joining us. Today's meeting is being held in hybrid format. Members of the public can participate and provide comments both in person here at City Hall and remotely by phone. Thank you to the staff. and guests who will also be participating in today's meeting. Madam Secretary, 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 Hakimi. Present. Commissioner Lim.

Here.

Commissioner Shaddix.

Here.

Vice Chair Miller. Here. And Chair Scott. Present. Madam Chair, we have a quorum. All commissioners are present. Next order of business is item two, announcements. Item A, the next regular meeting is scheduled on Tuesday, February 3rd at 1 PM. Item B, 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. Item C, 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 first 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 dial 415-655-0001 And when prompted, enter the access code, which is 2661-315-9615, followed by the number or pound sign, then the number or pound sign again to enter the call. When prompted, please 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. 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, or you can also choose to hang out. If you are planning to provide a public comment on any item on today's meeting, It is recommended that you call the public comment line ahead of time to allow you to listen live and to prevent you from experiencing delays. Today's meeting materials are available on our website at sfocii.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. The 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 consisting of consent and regular agenda. First is the consent agenda. Item A is approval of minutes, regular meeting of January 6, 2026. Madam Chair.

Madam Secretary, do we have anyone from the public who wishes to provide a comment?

At this time, if there are any members of the public who wish to provide a comment on the minutes from January 6, please call 415-655-0001, enter access code 2661-315-9615, followed by the pounder number sign again to enter the call. Press star 3 to be placed in the queue. If you're already listening to us by phone, please press star 3 if you would like to provide a comment. And we'll begin by inviting members of the public here in person. If you would like to comment on this item, you may come up to the podium at this time. Seeing none in person, checking the remote callers, Madam Chair, it does not appear we have any members of the public wishing to comment.

Hearing no further request to speak on the item, I'll close public comment. Commissioners, fellow commissioners, may I get a motion to approve of the minutes?

I'll move approval of the minutes.

May I get a second? Commissioner Hickey, may I second that?

Madam Secretary, please take roll.

Motion by Vice Chair Miller, seconded by Commissioner Hakimi. Commission members, please announce your vote when I call your name. Commissioner Hakimi. Respond with yes or aye. Aye. Commissioner Lim.

Yes.

Commissioner Shaddix. Yes. Vice Chair Miller. Yes. Chair Scott. Aye. Madam Chair, the vote is five ayes.

Motion carries. Madam Secretary, please call the next item.

Next is the regular agenda item number 5B, workshop on the recognized obligation payment schedule for July 1st, 2026 to June 30th, 2027. ROPS 26-27. Discussion. Director Kozlowski.

Thank you, Madam Secretary, and greetings, members of the Commission, members of the Board. This item is the annual workshop on the recognized obligations payment schedule for the fiscal year 26-27, which is for the period of June 2026 through July 2027. The ROPS, as we refer to it, is the State Department of Finance required reporting on our planned expenditures for the upcoming fiscal year. and the expenditures on the ROPS that are proposed will enable us to implement our various agreements and to complete our enforceable obligations in our different project areas, Trans Bay, Mission Bay, Hunters Point Shipyard and Candlestick, and to build vibrant community for all San Franciscans here. And to present this item is Grace Longardino from Finance, and she'll be accompanied by fellow OCII staff to help present. Grace.

Thank you, Director Kozlowski. Good afternoon, Chair Dr. Scott and Vice Chair Miller and commissioners. I'm Grace Longardino, Accountant IV for the OCII Finance Department. I'll be going over our ROPs for the 26-27 fiscal year, and the OCII project managers will present their sections. OCII's mission and strategic goals are to invest in our three major project areas of Mission Bay, Transbay, and Hunters Point Shipyard Candlestick Point. These communities, we will build 22,000 new units of housing, of which 30% will be affordable, 379 acres of parks and open space, and 13 million square feet of commercial space. Our project managers will discuss the work plans as they relate to these goals for the 26-27 year throughout our presentation. In 26-27, our major initiatives will be to complete parks, a pump station, and streets in Mission Bay, secure the permit to construct Under Ramp Park, and complete construction of the streetscape for the Block 2 affordable housing project in Transbay, and complete street acceptance on Hilltop and related shipyard infrastructure in Hunters Point Shipyard, Candlestick Point. In our housing program, we will be funding projects in Transbay, begin pre-development work in Mission Bay, and complete project closeout on projects in Mission Bay and Hunters Point Shipyard. The ROPS requires categorizing these payment sources for each expenditure into the following sources on the slide before you. We have our bond proceeds from our bond issuances. We have our reserve balances, which are property tax increment approved to be retained by the State Department of Finance in prior year for current year use. And we have our other funds, which include various fees, developer payments, and grants. We have three different types of Redevelopment Property Tax Trust Fund, or RPTTF, which is property tax increment generated in our project areas. RPTTF non-admin is requested to fund enforceable obligations and includes property tax increment subject to pledge agreements required to fund projects like infrastructure reimbursements. RPTTF residual is requested to fund the replacement and affordable housing units under SB 593. And these funds are requested from the pool of funds after distribution to the taxing entities. Our PTTTF admin is our administrative cost allowance and is set by formula per dissolution law. In our 2627 ROPs, we are requesting approval for $691 million of funds. The largest source will be bond proceeds. Compared to ROPS 2526, we are requesting an increase of $60.9 million. The primary driver of these changes are an increase in bond proceeds due to the new Mission Bay South bond issuance and the new affordable and replacement housing loans offset by spending down on our existing affordable housing projects. This table shows our ROPS $691 million by use type. Almost half of the funds are used for affordable and replacement housing, followed by our debt program. Our operations budget is 3.8% of our total budget. Compared to prior year, we are requesting $60.9 million more in authority. The increase is primarily due to new replacement housing loans and debt service on our bonds issued for those loans, as well as our associated staff costs. This is offset by our continued spending down on our existing affordable housing loans. We will request $175.8 million in RPTTF. The primary use is to pay for debt service on bonds, followed by our remittance of RPTTF generated in the state-owned parcels to the Transbay Joint Powers Authority. This is required under the Tax Increment and Sales Proceeds Pledge Agreement, which commits all RPTTF to the Transbay Terminal Project. Compared to prior year, we are requesting an increase of $38.9 million in RPTTF. This is due to an increase in our debt service for our new bonds for affordable housing, replacement housing, and infrastructure. I'll now turn the presentation over to Elizabeth Colamello, our housing program manager, to talk about affordable housing.

Good afternoon, Chair, Dr. Scott, Vice Chair Miller, Commissioners, and welcome, new Commissioner Hakimi. I'm Elizabeth Columello, Housing Program Manager, and I'm here to discuss OCII's housing ROPS request for 26-27. Just noting that this is a photo of Doris M. Vincent Apartments, which was completed in 2025, and it's in Hunters Point Shipyard Phase 1. It's 73 units of affordable family housing developed by Mercy Housing and San Francisco Housing Development Corporation and named after longstanding Hunters Point Citizen Advisory Committee member and community advocate Doris Vincent, who passed away in 2024. For OPS 2627, housing is requesting a total of $163.8 million to fund pre-development and construction activities for our affordable housing projects across our three main enforceable obligations of Hunters Point Shipyard and Candlestick Point, Mission Bay, and Transbay, with the highest expenditure being in Mission Bay. Of this amount, approximately $160.4 million is carry-forward funding from prior years. As you can see, the primary sources requested are bond proceeds, and the funds requested will primarily go to continuing to fund permanent and pre-development loans for our existing affordable housing projects under construction and in pre-development, or additional pre-development funds for a project in Candlestick Point that is restarting pre-development after pause. ROPS 2627 also includes the first SB 593 or replacement housing project funding request. As a reminder, the SB 593 replacement housing legislation was signed into law in 2023 by Governor Newsom and it allows OCII to use a portion of tax increment financing to fund and develop up to 5,842 affordable units. The portion of tax increment we are allowed to use per the legislation, with approval from the city via the annual budget process, is what remains after funding our current enforceable obligations in Mission Bay, Transbay, and the Shipyard and Candlestick Point. and after the taxing entities, except the city, receive their distribution. Replacement housing units must be developed following affordable housing standards set forth in state law governing redevelopment agencies, which establishes the following. These units may be built anywhere in San Francisco, They must be restricted to and affordable to households at or below the income categories of people displaced, and in no event higher than 120% of area median income or AMI. Units must have long-term affordability restrictions, which based on our current practice will mean essentially in perpetuity what we call life of the project. And they must be in addition to our existing obligations to build housing. In 2023 and 2024, staff with input from community groups, including our citizen advisory committees in the Shipyard, Transbay, and Mission Bay, as well as our commission, established priorities for the use of these funds. These priorities are intended to be guidelines for staff to use when evaluating potential replacement housing projects and are not requirements of SB 593. The first priority is to add affordable units to our existing project areas where we have land available, such as in Mission Bay South, on a portion of Blocks 4 East and 12 West, and in Hunters Point Shipyard Phase 1. These lands have capacity for additional units that could contribute to the new replacement housing obligation, as well as state-mandated citywide housing production goals for affordable housing, as established by the Regional Housing Needs Assessment. The Mission Bay South Owner Participation Agreement and the Hunters Point Shipyard Phase 1 Disposition and Development Agreement housing programs designate sites for the development of OCII-sponsored affordable housing projects, and they establish maximum number of affordable units, which is 1,218 in Mission Bay and 218 in Hunters Point Shipyard, that may be developed. The former agency and OCII have developed most of the units, and OCII only has authorization to develop the remaining balance of 165 units in Mission Bay and 33 units in Hunters Point Shipyard. Funding for any units in excess of this will be subject to future commission review and approval. Other priorities include developing projects in former redevelopment project areas and in other areas of the city in collaboration with the Mayor's Office of Housing and Community Development, or MOCD. This slide shows the proposed replacement housing expenditures of $171.5 million. The largest expenditure is for a gap loan for Mission Bay South Block 4 East Phase 2. And there's also funding for debt service for the new bonds and administrative expenses for the new bonds. Here you can see all the projects that will be funded under this ROPS, including replacement housing. We'll be spending down our permanent loans for our projects that are under construction or recently completed construction in Transbay and Hunters Point Shipyard Phase 1. We're showing remaining pre-development funds for our two existing Candlestick Point projects that had been on hold due to the revisions in the land use plans that were underway. Since those plans have been approved, we've added pre-development funds to one of those projects, Block 11A, that we'll be restarting. And we've added pre-development funds for a new Candlestick Point project as of fiscal year 25-26, block 7. We've included pre-development loans for Transbay Block 4, which will likely be approved by OCI Commission in the current fiscal year and will be spent throughout fiscal year 26-27. And we'll also be seeking a permanent loan commitment from Commission for Mission Bay South Block 4 East Phase 1 under the current 25-26 ROPS. And we'll begin spending it under ROPS 26-27, which represents the remainder of our obligation to build affordable units as part of our Mission Bay enforceable obligation. As part of our replacement housing budget, we have included the GAP funding commitment for Mission Bay South Block 4 East Phase 2, as I previously mentioned, and pre-development funds for our remaining Mission Bay South parcel Block 12 West. The ROPS also includes $10 million for new projects that conform to the priorities I just described for replacement housing. And with that, I'll turn it over to Nikki Henry to discuss Mission Bay.

Would you say your name again, please? Yes, of course. I didn't catch it.

Good afternoon, commissioners. My name is Nicky Henry, development specialist. I'll be presenting on Mission Bay's upcoming ROPS request along with our work plan. This slide shows the major projects we'll be working on. The top left is the stormwater pump station near the 4th Street Bridge. While the pump station is not visible and sits underground, it is a key piece of infrastructure to finish out the new separated sewer system in Mission Bay. On the right is the Fifth and King intersection realignment and signalization work at the landing of the I-280 freeway. And the bottom left is Park P2P8 along Mission Creek. The small image is the public art. Thank you. Thank you. The small image is the public art we commissioned to go into the park. The bottom right is Bridgeview Way, a pedestrian-focused mid-block between recently completed OCI-sponsored affordable housing at Blocks 9 and 9A. Mission Bay's ROPS request totaled $62.1 million. The majority of the source of funds comes from bond proceeds totaling $44.8 million, reserve balances of $11 million, and $6.3 million other funds, which is from the interest on the bonds. Our work will be focused on the active infrastructure shown on the previous slide. We will also be working on the design of parks P7 and P9 and the redesign of the Mission Bay Commons, where the food truck and miniature golf interim uses are located. In 2005, the former agency commission approved very passive park designs with a large costly water feature. Since then, the community has expressed interest in redesigning the parks and keeping the more active uses. We're in the early stages of that process, and we'll be bringing the schematic design before you early next year. The majority of the funding is funding infrastructure that's been recently completed or under construction. Other sources include $3.1 million for professional services, which goes towards other city departments reviewing and approving construction documents and expecting the work as it is completed. A small amount will go towards the public art I mentioned on the previous slide in Park P2P8. This concludes Mission Bay. Ben Brandon will present on Transbay. Thank you.

Thank you, Nicky. Good afternoon, Chair Dr. Scott, Vice Chair Miller, and Commissioners Lim and Shaddix. Also welcome new Commissioner Hakimi. I am Ben Brandon, Transbay Project Manager, and I'll walk you through the fiscal year 26-27 Transbay Redevelopment Project Area Sources by Uses and Work Program. As reflected by the images on screen, our Transbay work in the coming fiscal year will focus on developing open space and more affordable housing as well as property management. We intend to bid and begin construction of the under-ramp park project and also advance the schematic design of the Block 4 West affordable housing site. Additionally, we will continue to oversee the interim activation of the former Transbay temporary terminal by a third party. In ROPS 2627, OCII will request DOF authority for a budget of up to approximately $123 million to continue our work in the Transbay project area. While infrastructure is the primary use of our Transbay budget funds in the coming fiscal year, it's important to clarify that we do not anticipate expending the full $90 million. The large value includes $13.4 million in existing bond proceeds that are currently funding the construction of the Block 2 infrastructure project and the potential redesign of the Block 3 park. The proposed budget also includes the issuance of another infrastructure bond currently estimated at a not-to-exceed value of about $71 million, which would fund the construction of our Under Ramp Park project. We expect to break ground on Under Ramp Park in late spring or early summer of 2027. Therefore, the largest true expenditure in fiscal year 26-27 will be the Transbay Joint Powers Authority, or TJPA, pledge at $32 million. As Grace mentioned earlier in the presentation, the TJPA pledge is codified by the Tax Increment and Sales Proceeds Pledge Agreement, which irrevocably commits net tax increment and sales proceeds from formerly state-owned parcels in the project area to the Salesforce Transit Project Center. Consistent with this agreement, in ROPS fiscal year 26-27, OCII will transfer pledged RPTTF non-admin to the TJPA to fund the continued development of the Transit Center project. Our primary sources covering our fiscal year 26-27 Transbay work, our bond proceeds, and our PTCF dollars. And again, those sources are covering our major infrastructure projects and the TJPA pledge, respectively. The approximately $7 million in other funds is comprised entirely of Transbay park fees and interest. Regarding the Transbay Work Program in the upcoming fiscal year, the key activities we will be focusing on are permitting, bidding, and beginning construction of Under Ramp Park, seeking community feedback on the future program for the Block 3 Park site, managing the interim activation of the former Transbay temporary terminal site and the Essex Hillside open space, and developing the program and design of the Block 4 West affordable housing projects, while we also monitor the market to determine the best time to release a request for proposals for the Block 4 East project site. To fund these activities, we're requesting nearly $90 million for infrastructure, covering pre-development and construction of Under Ramp Park and pre-development work on the Block 3 park as well. We've requested just under $700,000 to fund the consultants that support our projects and $32 million to fund the TJPA pledge. That wraps up the Transbay portion of this presentation, and I'll now turn things over to my colleague, Laila Hussain, to provide the overview of the Hunters Point Shipyard and Candlestick Point project areas. Thank you.

LILA HUSSAIN- Good afternoon, commissioners, Chair Scott, Vice Chair Miller. I'm Lila Hussain. I'm the senior project manager for Hunter's Point Shipyard Candlestick Point. And today I will be presenting the budget for both the Hunter's Point Shipyard phase one as well as Hunter's Point Shipyard phase two. So the slide you see before you is a large map of both of these projects. Majority of the project has yet to be developed. We have Hunters Point Shipyard Phase 1, which has approximately 776 units completed on hilltop for those who have been out there. But the rest of Hunters Point Shipyard remains undeveloped. And the large portion of Hunters Point Shipyard Phase 2 on this map is currently undergoing remediation and retesting by the U.S. Navy. And the majority of those lands have not transferred to the city as they undergo cleanup. Then we have Candlestick Point, which is also part of the phase two project areas. There are also two different master developers. Hunter's Point Shipyard phase one is Lenar, and Hunter's Point Shipyard phase two is Five Point. And our budget for this upcoming fiscal year is $10.7 million. It's much smaller than the other two projects, but it's dependent on the stage of development of this project area. The majority of the funds are developer reimbursement and not tax increment because the project is not mature enough to to create an RPTTF at this time. So we have a small portion of RPTTF in this particular budget. So the largest category is infrastructure because of the stage of the project. We are working a lot on development plans, mapping, and infrastructure. So that's the largest category, followed by professional services, which are a lot of consultant contracts that we have to support infrastructure as well as CAC support functions and other legal services related to land transactions that we must do before developing further on Candlestick Point. Then we have community benefits, which is $1.4 million, which are developer contributions from phase one and phase two. And finally, the smallest category is lease payments, which are payments We make to the Navy for the artists that also lease. There's a portion of, there's about 90 artists that are on Navy property that have these leases, the release we have with the U.S. Navy, and also SFPD has a facility as well. So now I'll talk about the work plan. So as I mentioned, we are, you know, Hunters Point Shipyard Phase 2 is currently on hold, but we are spending the majority of our time on getting Candlestick restarted. So it's going to be an exciting year because the goal is to start Candlestick Point by summer of this year. So what that means right now is that we are focused a lot with other city departments to get infrastructure plans. Because we're building all new infrastructure, there's a significant amount of detail and review by multiple city departments so that we build infrastructure that can not only support the development, but also will be accepted by the city in the future, the new public roads, the parks and whatnot. So we are in the midst of that right now. And then the second category is on Hunters Point Shipyard Phase 1, which already has a portion built out. We have roads there, but they have yet to be accepted by the city. And what does that mean? The master developer builds streets that they are required to build brand new streets in accordance with city codes as well as city standards that are already established. And then the city needs to review and inspect them. and then take these streets to the board so that they accept them, and then they become part of the public's work city. streets process. So that's a big category we're working on. And then as I mentioned, the community benefits agreement, which we work very closely with the CAC and the legacy to work on implementing and spending these community benefits. There is already a strategic plan in place and where we have allocated where these funds go, various programs. And for example, last year we spent the majority of community benefits fund implementing the strategic plan that we had for scholarships and down payment assistance. We still have more to spend and as Candlestick begins construction, we plan to spend some of those funds for contractor assistance, further scholarship funds, as well as insurance credit support systems for contractors as the project gets started. And then the last item that we spend a lot of time on is working with the Navy, their special CAC subcommittees, or monitoring. Because in the end, the land will transfer to the city. And it is very important that not only the OCII, Department of Public Health, and other stakeholders are very much vested that the cleanup process is done in accordance with how we anticipated and such that by the time the land transfers, we are able to implement the redevelopment plan. So those are kind of the core functions of what me and my team work on related to Candlestick Point. And I'm around for further questions if you have them. Thank you.

Good afternoon, Commissioners, Chair Scott. I'm Nick Jones, Debt Manager. I'll be talking through the slides covering our debt program. So here you can see a table laying out the sources and uses for our bond program. The RPTTF non-admin is the primary source, and debt service for our existing tax allocation bonds is the primary use. The first row on the table shows the debt service for our existing bonds of $87.7 million being paid from RPTTF non-admin. And the second row shows a projection of our new bond debt service. In the first column there, there's $10 million of bond proceeds estimated to be needed to fund transaction costs for those new bonds, and then $20.9 million in the RPTTF non-admin column to fund the estimated debt service on those bonds. And I'll just note that there was a discrepancy from the oversight board memo table, page 12, where $13.3 million was recategorized in this RPTTF non-admin column from debt service on new bonds to debt service on existing bonds. That's described in the commission memo, and that was because Even though that $13.3 million represents new ROPS line items, those bonds have actually already been issued, with the most recent one having been issued just at the end of calendar year 2025. So those are our 2025 Series A, B, and C bonds counted in the existing bonds debt service row. So after the debt service rows, there's another row called Other Debt. That's our 2023 Series A Community Facilities District Bond Series. That's paid from other funds you can see in the column. And that is special tax revenue levied on CFD number six. And then finally, in the refunding row, we have an original debt service reserve fund associated with our 2014 series A bonds of $4.9 million. That's the bond proceeds column. And in the other funds column, that's the interest we've earned on that reserve that will also be contributed as a source when we complete the refunding of our mission-based south bonds, which the commission and oversight board have approved earlier this month. So the grand total there you can see is $133.6 million in sources and uses for our bond program. And I just wanted to note also on the second row, there's two asterisks there that indicate the replacement housing debt, which was previously discussed, is shown in a separate slide, not in this table. It's shown the debt service for that on slide 15. And on the next slide, there's a little bit more detail on our bond issuances. The new issuances in the top table are to fund projects that have been described in prior slides. So we have the tax allocation bonds to fund Under Ramp Park. tax allocation bonds to fund affordable housing in Hunters Point, Shipyard, Camp Stick Point, and tax allocation bonds to fund infrastructure in the Mission Bay South project area. So those first three rows are new issuances that have total debt service that sums to $20.9 million. You can see that in the final column, the first three rows. And that ties to the number that was shown on the prior slide for the new bond debt service estimate. The last row on this table is the estimate for the replacement housing bonds, which were shown on slide 15 in the housing section. And that creates the total rows that you see there of $42.5 million estimated new debt service for the new bonds and the ROPs. In the second table, we have an estimate of the refunding that was approved by Commission Oversight Board earlier this month. So that would be to refund series 2014A, 2016B, and 2016C bonds that are associated with the Mission Bay South project area. The current debt service on those bonds is $11.9 million annually. And we estimate that the refunding debt service on the refunding bonds would be only $11.1 million, so approximately $800,000 a year in debt service savings. And those numbers tie to the memo that came before you previously this month to approve those bonds. So that concludes the debt section. I'll now turn it back over to Grace to discuss operations.

I'll now be going over the operations section of our ROPS. In 26-27, we will spend $26.3 million on operations. Our primary source is other funds. Our operations uses are comprised of $10 million for existing staff salaries and benefits, which includes 54 full-time positions and a cost of living increase of about 4.55%. $11.8 million in non-labor costs and $4.5 million in retiree obligations, which includes $3.7 million in pension costs for current positions and $800,000 in current retiree health benefits. Compared to prior year, our uses increased by about $700,000. On the uses side, this increase is primarily due to an increase in salaries due to the cost of living increase and an increase in our benefits costs, including retiree health and pension costs, which are based on actuarial valuation. On the sources side, the increase is due to an increased use of RPTTF non-admin and other funds offset by a spending down of available reserves. In 26-27, our total request for non-labor is $11.8 million. Our largest use of non-labor is grant agreements and work orders with city departments. This table provides detail on our work orders with city departments. Our largest work orders are with the city administrator for our office rent and with the Mayor's Office of Housing and Community Development for affordable housing services. RPTTF admin is determined by formula, and this shows the specifics of that calculation. It is based on our prior year actual distribution, less prior year RPTTF admin, less any savings to get the base amount of $118.6 million. We then take 3% of this amount to get the 2627 RPTTF admin amount of $3.5 million. So our RPTTF admin is decreasing by $58,000 from prior year. We will be retiring the following lines due to a refunding of the Mission Bay South 2016 D bond, which was refunded into the 2025 A and 2025 B bonds, which have new ROPS lines. The remaining lines are being retired for administrative cleanup due to the timing of the bond issuances. We will be adding new lines due to the following. Lines 455 and 456 are for the refunding for the Mission Bay South 2016 D bond into the 2025 A and 2025 B bonds. Lines 457 through 460 are being added for administrative cleanup to replace the retired lines that are due to the timing of the bond issuances. Lines 461 and 463 are for debt service for the new replacement housing bond issuance and for the new replacement housing project. And line 462 is for the certificate of preference program, which consolidates work previously covered under lines 411, 219, 226, and 237. Our next steps are to incorporate the feedback from both the oversight board workshop and this commission workshop into the oversight board action meeting on January 26. OCII will then submit the final ROPS to DOF by February 1, 2026. This concludes our presentation of the ROPS for the 26-27 fiscal year, and we're here for any questions you may have.

Thank you so much for this presentation. Madam Secretary, do we have anyone from the public who wishes to provide a comment on the presentation?

Members of the public who wish to provide public comment on item 5B should call 415-655-0001, enter access code 2661-315-9615, followed by the pound or number sign, then followed by the pound or number sign again to enter the call, then press star 3 to be placed in the queue. If you're already listening to us by phone and would like to provide a public comment, please press star 3 on your mobile devices and wait for your turn to speak. We'll begin by inviting members of the public here in person. If you would like to provide a public comment, you may come up to the podium at this time.

Good afternoon, commissioners. Thank you again. What a great presentation, especially when we hear about progress being done in the Bayview and with the candlestick and the Alice Griffith area and the, you know, the opportunity to hear about development. I especially want to give a special thanks out to the commissioners and for you guys for hosting this and being a part of it and making sure that people that have these allocated resources and funds actually do something with them instead of just putting them in places that don't need to be. As we know, Bayview has been a cloud around us, and we haven't had an opportunity to see that part of the city grow, as well as other parts of the city that's being looked at. Finally, we're starting to see, after the demolition of Candlestick, that somebody is interested in actually doing some work over in the Bayview and in the Candlestick, Alice Griffith area that's been deprived for so long. We sit back and say, you know, and at Bayview, it's like, when is the resources going to come our way? Finally, you guys are advocating the resources to us. So thank you again to the commissioners. My name is Demetrius Williams, and I'm president of the San Francisco Hyperlocal Building Trades Contractors Collective. We are a bunch of contractors that sit, that works and reside in the Bayview, work in the Bayview. Our kids live in the Bayview, and we have a big interest in the Bayview to see the Bayview actually get the opportunity to grow. So I just wanted to once again say thank you to the commissioners and thank you to the people who's putting together this program. And hopefully we can get those resources to some of the contractors in the community and get involved with the development of the community. Thank you. Thank you, Mr. Williams.

Are there any other members of the public wishing to comment?

Yes, first giving honor to God, to Jesus Christ, who is the head of my life. I want to thank the commissioners for putting this on. My name is Andrew King. I'm retired, plumber from the city and county of San Francisco. I'm also a certificate preference holder. I grew up in the 60s in Hunters Point. And I'm here to thank publicly Dr. Scott. I had something horrible that happened to me three years ago when I came across these crooked lenders. I lost my property, and it was devastating. And unfortunately, I didn't really have the thousands of dollars to fight back. When I needed help, Pastor Lillias Walker Dr. Scott, Dr. Honeygut, and Linda Richardson helped me when I didn't have the funds to help myself. The judge ordered that they return that property back to me. I lived in Hunters Point and Bayview all my life, pretty much. So I'm so grateful for Dr. Honeycutt helping me. When she didn't have to help me, she came and contributed to my finances, for I can fight these crooked lenders. And I'm glad that God gave me favor that they had to return my property back to me. And the young man who just got through speaking, Demetrius, we grew up together. I didn't know I was going to see him. But I'm so proud of him. I'm so proud of him. I worked with his dad. So I just had to share this information with you. Thank you very much for your time.

Thank you, Mr. King. Appreciate your words of expression.

Would anyone else here in person like to come up to comment on this item? Seeing none, moving over to our remote caller. I do see a caller, Madam Chair. Hello?

Hello, can you hear me?

Yes.

OK, excuse me. My name is Dennis Williams, Jr. Principal of DC Williams Development Company, executive director of the Fillmore Community Development Corporation. And first let me say hey to the board. Appreciate everyone listening in the room. My question is today I'm calling about inclusion of micro real estate developers on OCIS projects. um and the deep rooted in california city's historic black communities and extensive experience supporting the community um looking for our aligned aligned development outcomes excuse me um currently there is since we're at the early stages of engagement in community legitimacy um there needs to be pathways for the community i just got um through helping the seniors so I'm looking through my notes real quick, but their contracts alone do not produce community wealth and ownership development leadership. Micro developers participating operationalize equals OCII's equity goals. So what I'm really trying to say is there needs to be a development level participation and partnership throughout the Project with Lenore and five points in the shipyard. And also need other community led entities. And on the community benefits simply because you guys only stated the CAC. And the same thing with the Mission Bay block 2. There's still no pathways for micro real estate developer participation. So I'm proposing that OCII aligns themselves with local developers. I mean, align local developers with the master developers, excuse me, and establish a clear pathway for future development and ownership participation. And again, excuse me, I'm just getting back from helping the seniors in the community. Thank you.

Thank you, Mr. Williams.

Madam Chair, it does not appear we have any other members of the public wishing to speak at this time.

Hearing no further request to speak on the item, I'll close the public comment. And I'll turn now to my fellow commissioners and ask if you have any questions, any comments, or concerns.

A lot of big numbers.

Commissioner Miller, vice chair. Yes, thank you, Chair Scott. A lot of data there. I really appreciate this. Director, and I think that the ROPS represents the real work on the ground here. It's amazing to see all this detail, and it's a lot to go through, but it really focuses on all the work that the OCII is going to be accomplishing. I appreciate all the work that went into this. And does the current budget climate affect our revenue sources or anything that we have to worry about coming forward? Or are we pretty much solid on the funding of all these projects and all the expenditures?

Thank you, Commissioner Miller. Yes, the city's budget and the city's economics always affect formerly redevelopment and, of course, OCII. The first place it shows up is in property tax values. in the different project areas. And we always project fairly conservatively in terms of our estimates. And there's been, of course, significant property increases. Some of those have resulted in appeals over time more recently. And so whenever we do our bond projections, we project very, very conservatively and take into account any existing We can't predict any future ones. In the coming months, we'll be engaging with the mayor's budget office to talk with them about our budget. And we're hopeful that our budget will go through as it is. But we have yet to have those discussions. The mayor's office did indicate that there was just under a $1 billion budget deficit at the city. And so that's what we'll have to be discussing with the mayor's office.

Commissioner Shaddix.

Thank you very much, Chair Scott. Thank you, staff, for a really great presentation. A lot of stuff, and you guys did a lot of work, clearly. So it's greatly appreciated. Really commenting on the last two days, Sunday and Monday, I spent a lot of time in Mission Bay, Trans Bay, did a lot of walking. I clocked in 14,000 steps and 12,000 steps, just in that area. And all I did was zigzag, walk around. just looking at what's been built, what's to come. And then I came home to Third Street, Third and Oakdale, and certainly did a lap around Candlestick before I got home, and just seeing a lot of dirt and a lot of what I hoped to be. And I just want to just say, again, that I'm really looking forward to the Candlestick development starting. And I'm really hopeful that all of those that make public comment and come here in person, which I know is a big deal. Parking, that costs you $30 right there unless you found something out front there. It's really appreciated, and I hope you come every single meeting when we start talking about Candlestick, because I promise you I'm going to be my ears on the ground. I'm on Third Street all the time. Stop me, call me, and let me know. We want to make sure everybody is included in Candlestick and that all of our local folks are building Candlestick. Period so that's just really wanted to make that comment and the Transbay Mission Bay all of that beautiful developments great and the the park there By the chase arena is just incredible. It's really such a beautifully designed park So congratulations to all those that have built that and I'm really looking forward to seeing a whole new candlestick coming to light So, thank you Oops there another

If not, commissioners, this is a workshop. It's an item, and it will not require our action. The ROPS, the recognized obligation payment schedule, will go to the oversight board for their consideration next week. Then it will be submitted to the Department of Finance for approval. Madam Secretary, please call the next item.

The next order of business is item six, public comment on non-agenda items. If there are any members of the public who wish to provide public comment on non-agenda items, please call 415-655-0001, enter access code 2661-315-9615, followed by the pound sign, then the pound sign again to enter the call, then press star 3 to be placed in the queue. If you are already listening to us by phone, please press star 3 to raise your hand virtually, and wait for your turn to speak. We'll begin by inviting members of the public who are here in person. If you would like to provide a public comment on non-agenda items, you may come up to the podium at this time.

Demetrius Williams, San Francisco Hyperlocal Building Trades Contractors Collective president, resident of Bayview Hunters Point, and son of the late Clarence Williams. My father was a plumber for the city for 42 years. then his sons got involved in plumbing, and now all of our sons are plumbers. I just want to say thank you to the commissioners once again, to OCII for hearing our voices, hearing the residents, hearing the community contractors, and being that liaison between GC City and the community. Thank you.

Thank you, Mr. Williams. Is there anyone else?

Are there any other members of the public in person who would like to speak? Seeing none, moving over to our remote participants. We do have a caller, Madam Chair.

How are you doing? Can you hear me?

Yes, we can hear you. Thank you.

Thank you. I'm settled now. This is Mr. Dennis Williams again, principal of D.C. Williams Development Company, executive director of the Fillmore Community Development Corporation. To be clear, my interest is not in construction contracting or SBE procurement, but in development-level participation and partnership modes that strengthen our public trust and our long-term project success. My uncles went to the Navy and then worked in the shipyards. My auntie was a baker at the famous cheesecake factory that they had there. My father, a retired captain of the Sheriff's Department, bought a home our first home on gerald street adjacent to the shipyard i'm familiar and also my mother worked for the redevelopment agency and i interned at candlestick view atop akiska so i have deep roots in the city's historic black communities and extensive experience supporting community-aligned development and our subcontractors ocii must identify a pathway for the local microdevelopers to where the master developers and I and others can explore opportunities, development level alignment. Early stage engagement and community initiatives, like I said, advisory or co-development roles are tied to the community benefit delivery. We must not let that continue to be lost. Let me see. I propose a framework or a pipeline for microdevelopment advancement, community-rooted development leadership, and partnerships between OCII and local emergent developers like myself and so many others. I'm a donor of SPUR, and as you know, they promote local black and minorities building in the communities that they are from. This project, unfortunately, is lacking that I hope we can do more, as it's stated, By one of the panel members that. Everyone should be able to build in the Bayview. Everyone should be able to contribute and let's not continue to leave out our micro developers. I went to college and I worked too hard to be excluded continuously. Thank you.

Thank you Mr Williams.

Madam chair, it does not appear we have any other members of the public wishing to comment at this time.

Hearing no further request to speak on the item, I'll close public comment. Madam Secretary, please call the next item.

The next order of business is Item 7, Report of the Chair. Madam Chair.

I just want to say thank you to the ROPS team for your report. Thank you, Grace and Elizabeth, Lila, Mr. Mickey.

Henry.

I couldn't get that last name, sir. Thank you. Your voices seem to just disappear towards the last, or you mumble and say it, and we can't hear it too well. But thank you so much for the report. Thank you for what you're doing. I'm glad to see that there are finances there for cleanup. It's a hardship in our communities where the tenants suffer because cleanup is not being done. And I'm glad to see that the housing helped because affordable living is needed so in this city. And you're working on that. You're keeping it aboard with the ROPS. And thank you so much for that. I'm grateful to say that CAC, our Mayor's Advisory Committee, continues to do workshops, job fairs, and along with the Legacy Foundation, benefits for the community. And that's a help out of OCII, and I'm grateful that this continues on. The workshops, job fairs, as I said before, the attendance is amazing because the outreach is good. And we're glad to see that sometimes there's barely standing room. And that says that they are reaching us and we're getting information. And I just hope and pray that continues to move forward. I'm thankful for James, Brian, and JPR who is working hard with our community leaders, our workers, business owners, to get them into place and offering. There's a training that he's working with Caltrans. And I've gone to the meetings and working with Mr. Bonnie Inaga. And with Caltrans, they want to make sure and ensure that our people continue working. So I'm hoping that carries on and goes forward, as well as the LG training, which will be a great help to our contractors getting their materials for work so that they're not underbidded. and it'll be at a lower cost. So I'm hoping all those that can sign up, attend that training, which will be held in Sacramento, will happen. But thank you for this meeting. Thank you for the information you've presented. And I applaud you. Thank you for doing so much with less. MADAM SECRETARY.

THE NEXT ORDER OF BUSINESS IS ITEM 8, REPORT OF THE EXECUTIVE DIRECTOR, DIRECTOR KOSLOVSKY.

Thank you, Madam Secretary and members of the Commission, members of the public. Thank you for listening to this ROPS workshop. After this meeting, we'll have a meeting with the Oversight Board, which will consider approval of the ROPS. That is happening on January 26th. The approved ROPS documents then go to the Department of Finance, and they have several weeks to review to either approve the ROPS or ask questions or ultimately deny it. But we have a fairly good track record of them approving the ROPS line items, but I won't jinx it. Just submit it and... YOU KNOW, IT'S A SOLID DOCUMENT. SO IN WHICH CASE WE'LL THEN BE ABLE TO ENTER INTO OUR CITY BUDGET PLANNING PHASE. AS YOU ASKED EARLIER, VICE CHAIR MILLER, ABOUT THE CITY'S BUDGET. THEN WE CAN BEGIN PLANNING FOR THAT. WE'VE ALREADY GOT A LOT OF THE ARCHITECTURE BASED ON THE ROPS DOCUMENTS. SO WE'LL PROCEED THAT. BUT THEN WE'LL HAVE GREATER CERTAINTY ABOUT WHAT THE STATE HAS APPROVED. And I just wanted to make a quick note. The Navy is funding cleanup at the shipyard. The city doesn't contribute any funding. The Navy is responsible legally and responsible financially for the cleanup that is ongoing there. So I wanted to make that note. And I want to welcome Commissioner Masa Hakimi. Thank you so much for joining us and for your service to the city. I know of your record at the Arts Commission and the work you were doing there and the contributions to make sure that this city is a lively and thriving place. So welcome to the commission, and I look forward to working with you. Thank you.

Thank you, Director Keselowski. And again, I'd like to thank you for all that you're doing, and Jim, for being aboard and advising out of a mountain of despair the stones of hope that we need to go forward. Madam Secretary, do we have any questions, I'm sorry, fellow commissioners, on the director's report? Any questions, comments, or concerns?

Thank you again for this detailed work. It really shows what we're up against and what we can accomplish. So it's good to see. And welcome Commissioner Hakimi.

Commissioner Hakimi.

Thank you. I wanted to say what a great way to get to introduce to this commission. What a wonderful presentation. The workshop was a great roadmap for me, both to see the quality of the work that the staff has done and the team, and giving me an opportunity to look for how I'm going to be working with my fellow commissioners. and also just to understand the importance of the community that we're going to be, I mean, I'm joining to serve both the community neighborhood, the residents, and of course the merchants of the neighborhoods that were actually focused in this commission. And I'm very excited. Thank you for all the warm welcome. And I have a lot of learning to do very quickly, and I promise I'll be doing that I'm already doing that.

Thank you so much.

Thank you.

Commissioner Shaddix.

Thank you. And welcome to Commissioner Hakimi. And I am no longer the rookie. So I'm very, very happy to have you over here now. But speaking of your previous post as arts commissioner and speaking of art and speaking of candlestick, you know, I do know that development agreements have art budgets attracted to them or attached to them, excuse me. So at some point down the road, as we start, you know, talking about more candlestick development, I'd really like to hear more about what proposed art is coming to that area, because we have some great art already in the shipyard. We have some beautiful pieces, Mildred Howard sculptures up there and others. And I think having A lot of art is part of the candlestick development and the shipyard, too, by local African-American artists would be super great to talk about. So I'm going to lean on to our new commissioner here for your advice for that, too. And thank you, director, for your report, too, and all that you do.

Thank you. Thank you. And if we're done, Madam Secretary, please call the next item.

The next order of business is Item 9, Commissioners' Questions and Matters. Madam Chair.

Fellow Commissioners, I think... We've given our comments, and I'm grateful to see you all that are here attending and getting the information that's needed and helping us to move forward. It's good to see a couple of the faces I haven't seen in a while, and it warms my heart for your presence. Warms my heart. And so moving forward, if there are no comments, Madam Secretary, please call the next item.

The next order of business is item 10, closed session. There are no closed session items. The next order of business is item 11, adjournment. Madam Chair.

Fellow Commissioners, I will need a motion and a second to adjourn the meeting.

I'll make a motion to adjourn.

Meeting has been moved and second to adjourn.