inspection and therefore are going through the process. so one of the benefits of having that cass is a 120-day stay. and also, there's another section -- there's two sections -- >> yeah. there's a 120-day stay, and then, you can register it with your cass inspection number, property address, all of that. >> so i'm bringing that to your attention just so -- so there's definitely -- i think moving forward, we just -- you know, it's part of this office's effort, you know, regardless to whether i'm here or not here, how we can continue to help really encourage businesses to get their cast inspection, understand, you know, precovid -- i know that there is one coffee shop on valencia street, had an accessible

entryway, but got sued because they had a counter, the top, the milk, and the sugars and all of that was just too high. so any way, we need to encourage businesses to really understand the inside, even for new businesses in addition to businesses that have been open for a while. i want to -- under policy and legislative matters, i do want to note that supervisor safai's legislation on the commercial rent relief that you supported has passed out of the board of supervisors with a total of eight supervisors supporting that. still no information yet as to whether that -- the commercial rent relief will be funded. the resolution that you adopted regarding the employee tax

credit, that has been forwarded, and i think carrie did inform you, has been forwarded to all the key folks in the city and the office of economic and workforce development, so i'll be following up with her this week because she was out last week, so just what the next steps might be in response to the resolution so that i can provide you with that. then, i want to just -- i want to kind of -- as we move -- as you move forward, as we all move forward, legislation is happening, and it's -- you know, as -- i mean, as commissioner adams, and even you, commissioner ortiz-cartagena, have been here for a while, we can see that -- i mean, there's been an

extraordinary difference where the office of small business and the small business community wasn't consulted in drafting legislation, and -- and therefore, you know, the role of the commission in dealing with legislation at the time and having -- there was a lot more nuancing and recommendations for amendments, and fortunately, we're sort of more in a place of office staff having more involvement in advising on drafting of legislation. and so, you know, to give some consider for what's -- what are some additional -- besides making some legislation and recommendations, what else can the commission do? so the commission can take a look at policy or different procedures. we did this -- we took some

initial steps in this -- in taking a look at it, getting presentations from departments. it may be multiple presentations from multiple departments over different meetings than to coalesce a recommendation. this was similar to what was done with the commission working group, so i just sort of laid that out there in terms of you might want to think about moving forward in terms of taking on two or three policy items that you want to take a look on, do some is deep dives, and then have the commission come together to make its policy recommendation. and to kind of follow up with this, we had a -- we start to have a very robust discussion with the formula retail and conditional use. so i want to do just some

policy reminders and then, you know, i don't -- it's not -- it's not agendized for us to have a robust discussion, but just kind of utilizing -- i want to provide you just with some information just kind of give some thought to it. so one is just a reminder, that under the cb3p program, which is the expedited conditional use, formula retailers are permitted to use the cb3p to help our local home-grown businesses. so the other thing to give consideration to is the fact that there are still businesses that have to go through conditional use just like a

formula retailer, and these businesses are not eligible for the cb3p, and that is like a tobacco retail establishment, nighttime bars or restaurants or things that have a full alcohol license. so it's not just places that serve beer and wine, but that they are able to serve spirits, as well. i think it's always important to remember that there are individual businesses who also have to go through that same conditional use process. then, i also -- having gone through my own experience of having worked with a retailer from when they were three stores to -- i think i left

when they had 13 stores, and just being able to see, you know, what a business could do having, you know, a higher number of businesses. and i was an area manager, and what i experienced as an area manager is that sometimes new stores, it would take them a year before they started to break even? and to be able to support that cost, it helped by having other profitable stores. so -- and that was able to sustain that new location, being able to get, you know, off the ground and start generating a profit. so something that -- so when we're talking about formula retail, i just want to make sure, you know, that it's not to say that the expense of going through the conditional

use is not something to be considered, but we have to also remember sometimes who's the messenger, and sometimes the messenger are the retailers, and there's a higher profitability with being able to lease two formula retail. but the greater thing that, i think, needs to be given consideration, and if we kind of look at el faralito situation, and i'm going to say this without being able to absolutely affirm, you know, their schedule of growth? but they opened their first two locations in 1997. they opened a third location in san francisco in 1998. the fourth location in san francisco was opened in 2014. it recently closed in january of 2021, but i think, you know,

some of the conversation that we are hearing in -- regarding our local home grown formula retailers is they -- they may have two or three locations, and then, they leave the city to be able to grow even more and then come back rk and prafg -- come back, and perhaps some of that is being done because you might need to grow your business outside of san francisco in order to come back in order to grow your business. i sort of liken back to when i first moved here, i don't know how much of you remember just desserts.

it was in many neighborhoods, and it was the place to go, and it was a san francisco home grown thing. and i don't think that we quite see that kind of home grown business anymore in multiple neighborhoods, so when we're talking about, you know, kind of growth and expansion, yes, the formula retail costs, but it's a one-time cost. like, once you get through it, it's a one-time cost, and can you afford the cost on an ongoing basis? [please stand by]

>> director: so i just -- i just, you know, as you if the commission's going to give policy consideration in relation to formula retail, i

think just don't forget there are other potential considerations that might affect this as well. so i'll just leave it at that. so with large -- with businesses growing their business through e commerce first and then wanting to do land use and then have a store. so as a reminder and i believe,

commissioner adams, you can correct me and i believe vice president zouzounis, the planning department said it's not within their purview to establish any kind of economic distinction so that is if there's interest from the commission, that can be something that's explored on your behalf -- not your behalf, but you can explore what that could be from a policy perspective. but, again, you know, the planning department did note their role and their purview is regulating land, so anyway. that is why e commerce, we don't have an e-commerce

designation that potentially could be applied for formula retail. and then, also, i just want to remind the commission that the economic mitigation working group did set forward or did produce a set of 15 recommendations and discussion with vice president zouzounis who's the chair of the equity special committee, the racial equity special committee. you know, this is something that the racial equity special committee can look at, but there's a set of recommendations too that can be looked at and discussed. and i think there's kind of a top three that i look at. one is the elimination of the deemed approved use fee to amend the tobacco retail sales

so that it allows for other family members and expands the family member definition if the business is passed on to the family that they're able to retain. the tobacco license and then the cigarette litter abatement fee, but there is a whole host of others. so i'll resend that list to you for you to take a look at. and then lastly, i just want to make a note that i am having carrie work on a resolution regarding ada tax credits because it turns out the annual tax credit and deductions that businesses can take, that hasn't changed since 1998 and it turns out through carrie's research, excellent job on her

part, that she found out that senator duckworth in 2018 and 2019 put forward a bill to increase those tax credits and deductions, but, you know, it was under the trump administration, so those kind of died on the floor. so it's good to know that we have, you know, senators at the federal level who are also thinking about this and so looking to draft a resolution to help our local government encouraging our state -- our federal officials to continue to support and maybe encourage senator duckworth to reintroduce that bill. so with that, i'm happy to take any questions and i will leave it there.

>> vice president zouzounis: thank you, director. commissioners, do we have any questions for director dick endrizzi? commissioner huie. >> commissioner huie: that was a lot. thank you very much. that was a lot to digest. i am wondering in terms of formula retail, what in the past, how has this mission gone about to explore -- like, was there a sub committee. i feel like this was a huge topic like you were saying in terms of all the different policies that have happened and and i feel that our commission's role is so

important because they're in such a disconnect in policy and what actually happens in real life and speaking of other, you know, i guess without bringing up other topics and things, i think we have such an intimate understanding of how a business operates, runs, what we're thinking in terms of how we weigh our decisions and i think that's something that, you know, i wouldn't expect other people to understand unless they've really been in our shoes. like the example you brought up

in your. so how do we then bridge that gap between the idea of land use and the actual economics of running a business today. so i think that conversation is so -- go ahead. >> commissioner: i can jump in because i lived and breathed for the last eleven years and we've had sub committees and out of it we made changes to the cp3 program. we were able to make some changes, but you have to realize this is a voter mandated thing. so we can only do so much you have to go to the voter. she said i was involved in every one of these subgroups

trying to make those changes because i hear your frustration on this. i mean, i'm living it myself and i hear it through others. this isn't an overnight thing. it's going to have to come from changes from the mayor's office, from the board of supervisors. unfortunately, i mean, this commission has tried to do some changes. we've had some division on the commission with this. so, you know, in all fairness, we've had groups that we've met with the planning department. it's a tough thing and without

getting into discussion on this, because we can't, but we've had groups in the past that came out with positives on this. maybe we can have a retreat and talk about and see what we can do. >> commissioner huie: yeah. i don't think we're going to solve this and i don't even know what that solution would look like, you know. i think it's just -- i think is there a way that our commission can help shape the narrative for the present and then the near future? because the landscape looks very different than it did even five years ago at this point. so my hope is that i think putting it on the retreat agenda is a great idea. like having some space to be able to think about it and how do we fit into that narrative? because i think we've -- you have obviously put in a lot of work and other commissioners have obviously dealt with it.

>> commissioner: yeah. and i think the best thing to do going forward and we've done this. i think for people like you and people on the commission to have planning come in and somebody from planning explain it because it's a lot. and it's really important i feel, especially, you know, you've been out on clement street. i mean you know what's going on. your own shop. you're involved with your merchant organization and so i know what you get being involved in a merchant organization and i think there's things as merchant organizations, they may not last -- i mean, they don't know what's really out there and i think the first step is to have somebody come in and explain everything to the commission. >> director: right.

and to add to commissioner adams' comments, sometimes things are department driven, so the 2014 analysis was a department-led effort by the planning department and so therefore they included a representative of small business commission which i think was you, commissioner adams, but then they also had neighborhood representation which is where commissioner dooley and i think vice president zouzounis were involved through that. sometimes things are department driven and you might write a resolution that says, "we request that the department do xyz." i think one thing commissioner adams said is one thing for the commission to get a full briefing on the history.

we'll use formula retail as an example and just get a full history of the formula retail from inception, what changes have taken place, you know, what's there. so, you know, that's why i reiterated that, you know, we do have exceptions for formula retail to at the point them go through the conditional use process just like other small businesses who have to go through conditional use that can derive that benefit. so sometimes that may not necessarily be in everybody's, you know, forefront of their mind. so there's a history and then i think, you know, where the commission can really help weigh in and sort of do some potential sort of recommendations is around the e-commerce side. so, again, you know, that was

2014 and the planning commission city attorney said that this is not an area for them to take leadership in because of, you know, their department, their role, and their function, but that doesn't necessarily mean that the commission can't take the leadership in that. so what would that entail? and that is something that, you know, then working with carrie would be, you know, what is the information we would want to gather to hear to then be able to inform and make a recommendation. or it could be that a special committee is created, though that's a lot of additional work. but to do a deep dive into it as well. but sometimes it benefits to have the full commission to have those presentations.

so, um, so any other questions? >> vice president zouzounis: i was just going to say, i was on the subsidiary as the small business group and i think that was around 2015. it might have been right after the 2014 formal group convened, they had a subsidiary working group. so i know that that had -- i mean, our focus was a little different because it was on formula retailers that were creating adjacent businesses

thoughts. my memory doesn't serve there's been any changes. so i think if it's something that we want to formally request as a body to have a presentation on both the formula retail and the subsidiary codes because i think they are distinct in that sense, yeah. but i think we should take into account everything that the director said that there are policy initiatives. we've already started at the commission that will address some of the economic barriers for small businesses that are, you know, hoping to become expanded businesses with multiple locations. i think fee mitigation is something we have said over and over again and i would love to

see us follow through on some of the policy proposals we've made in those areas and maybe use this as our contribution to the formula retail conversation. so really identifying what we feel like our niche is in that but i'm happy to keep brainstorming around that. >> director: and the last thing i'll say and hopefully we can move into public comment. but the one thing that is different is e-commerce in 2014 is very different than e-commerce now and so that is a particular area that i think is worth exploring.

so i think if there aren't any more commissioner questions, then we should move on to public comment. >> vice president zouzounis: are there any public callers on the line for item number seven? >> clerk: there are no callers in queue. >> vice president zouzounis: thank you. public comment is closed. thank you, director. may we please take the next item. >> clerk: item eight, commissioner discussion and new business. allows president, vice president, and commissioners to report on recent small business activities, make announcements that are of interest to the small business community, and make inquiries of staff and allows commissioners to introduce new agenda items for consideration. this is a discussion item.

>> vice president zouzounis: thank you, carrie. do we have any commissioners who want to give a report at this time? we do the work. we don't always have to talk about it. all right. i'll give a quick one. i was invited by supervisor stefani to join a union street merchant walk as part of the activation. okay. yeah. i'm still commenting for as part of the merchant group and avenue green light projects there. that was really neat. i met some of your clement street colleagues.

commissioner huie, you have a great crew out there. active merchant groups are now helping other merchant groups and i see that as a big benefit from this project as part of the san francisco merchant groups. so that was a really great event on union street. so props to that association and, today, i also joined some of our colleagues as part of the healthy retail program and food trusts that are helping small retailers, small grocers address some of their supply chain needs as it pertains to getting healthy products and more to come on that. commissioner huie, i'll pass it

to you. >> commissioner huie: i don't always like to share the stuff that i do, i guess. not because i'm secretive about it but just because, you know, like all of us, we kind of just do our thing, but one of the things that i'm working on is helping the chinese historical society of america plan a street fair in chinatown and we got our street closure on joyce alley, so joyce street and we're working in partnership with c.c.c. which is i think "chinese cultural center" of san francisco. i may have that totally wrong. but we are partnering with them and they're producing a performance, a day of dance called "dancing on waiverly" and so there are two festivals happening at the same time and it's scheduled for

october 16th. and it's kind of like a marketplace where we've invited vendors who are exploring their a.a.p.i. heritage and bringing forth crafts and art and we'll have different artists with their work and hopefully artists talks and things like that. and the thing that's really significant about this is that we are working in collaboration with others and i find that in this community, it's really important for us to really think about how we can collaborate and create partnerships and, you know, this is -- i guess what you said, vice president zouzounis, was that, you know, merchants associations are collaborating with each other. you know, people in different neighborhoods are collaborating with each other. even in the same neighborhood. i think what we need now is

really the concept of how do we lift all of us up. let's not reinventing the stuff, and that's what we're hoping for with the street fair, is the opportunity to make new connections and bring people into the neighborhood and create something hopefully that will be sustaining. so this is the first of the fair. hopefully, this will continue and i'm kind of helping them make businesses. so, hopefully, if you guys are in chinatown or interested in going to chinatown on october 16th. i think the next day is going to be phoenix day for the whole city, so lots of activities. i know clement street has some things planned. yeah. i'm also excited about fleet

week. that's coming up too. i don't want to be a sitting calendar, but there are a lot of things happening that, you know, i am really excited to see because it's time we celebrate a little bit, you know. so, yeah. i'm open for more collaborations and meeting new people. thanks. >> vice president zouzounis: seeing no more commissioners. i'll take public comment. do we have any commentors for item number eight on the line? >> clerk: we have no callers in queue. >> vice president zouzounis: thank you. public comment is closed for item eight. next item. >> clerk: item nine adjournment. this is an action item. >> commissioner: i move to adjourn. >> vice president zouzounis: second. >> clerk: moved by

commissioner ortiz-cartagena and seconded by vice president zouzounis. okay. motion to adjourn. [roll call] motion passes four to none with three commissioners absent. do we have to read a closing statement before we close? >> director: well, we just -- the office of small business slide should be read before we do adjournment. so we'll just have to bypass that. >> clerk: oh, right.

okay. meeting is adjourned at 6:27 p.m. then. >> director: thank you, commissioners. >> vice president zouzounis: thank you everybody.

shop and dine in the 49 promotes local businesses and challenges residents to do their shopping and dining within the

49 square miles of san francisco. by supporting local services within our neighborhoods, we help san francisco remain unique, successful, and vibrant. so where will you shop and dine in the 49? >> my name is ray behr. i am the owner of chief plus. it's a destination specialty foods store, and it's also a corner grocery store, as well. we call it cheese plus because there's a lot of additions in addition to cheese here. from fresh flowers, to wine, past a, chocolate, our dining area and espresso bar. you can have a casual meeting if you want to. it's a real community gathering place. what makes little polk unique, i think, first of all, it's a great pedestrian street. there's people out and about all day, meeting this neighbor and coming out and supporting the

businesses. the businesses here are almost all exclusively independent owned small businesses. it harkens back to supporting local. polk street doesn't look like anywhere u.s.a. it has its own businesses and personality. we have clothing stores to gallerys, to personal service stores, where you can get your hsus repaired, luggage repaired. there's a music studio across the street. it's raily a diverse and unique offering on this really great street. i think san franciscans should shop local as much as they can because they can discover things that they may not be familiar with. again, the marketplace is changing, and, you know, you look at a screen, and you click a mouse, and you order something, and it shows up, but to have a tangible experience, to be able to come in to taste

things, to see things, to smell things, all those things, it's

>> it was an outdoor stadium for track and field, motorcycle and auto and rugby and cricket located in golden gate park, home to professional football, lacross and soccer. adjacent to the indoor arena. built in the 1920s. the san francisco park commission accepted a $100,000 gift from the estate to build a memorial in honor of pioneers in the area. the city and county of san francisco contributed an additional $200,000 and the stadium was built in a year. in the 1930s it was home to

several colleges such as usf, santa clara and st. mary's for competition and sporting. in 1946 it became home to the san francisco 49ers where they played nearly 25 years. the stayed de yam sat 60,000 fans. many caught game the rooftops and houses. the niners played the last game against the dallas cowboys january 3, 1971 before moving to candlestick park. the stadium hosted other events before demolition in 1989. it suffered damages from the earthquake. it was reconstructed to seat 10,000 fans with an all weather track, soccer field and scoreboards. it hosts many northern california football championship games. local high schools sacred heart and mission high school used the

field for home games. the rivalry football games are sometimes played here. today it is a huge free standing element, similar to the original featuring tall pink columns at the entrance. the field is surrounded by the track and used by high school and college football and soccer. it is open for public use as it is open for public use as

>> chair bustos: this is the regular meeting on the commission on community investment and infrastructure tuesday october 5, 2021. i like to welcome members of the public who are streamlining inor listening to us live as well as the staff and other participants. following the guidelines set forth by local officials at this time, members of the commission are meeting remotely to ensure the safety of everyone including members of the public. thank you all for joining us. madam secretary, please call the first item. >> first order of business is roll call. commissioner brackett is absent. [ roll call ]

all other members of the members are present. next order of business is item 2 announcements. next regularly scheduled meeting will be held remotely on tuesday october 19, 2021 at 1:00 p.m. announcement of public comment procedures, be advised a member of the public has up to three minutes to make public comments on each agenda item unless the commission adopt a shorter period on any item. during the public comment period, you will be instructed to dial 415-655-0001. enter access code 2482 190 7334. when you dial star 3 you will hear the following message. raise your hand and ask a

question. please wait to speak until the host calls on you. you can stay on the line to listen to the meeting or choose to hang up. next order of business is item 3, report of action taken previous closed session meeting. there are no reportable action. next order of business is item 4, matters of unfinished business. there are no matters of unfinished business.

next order of business is item 5, matters of new business consisting of consent and regular agenda. first is the consent agenda. there are no items. next is regular agenda. 5a is authorizing teleconference meetings and making findings and support there of under california government code section 5493e. resolution number 34-2021. >> good afternoon commissioners. this first item relates to the rules around which we are allow to meet remotely during the pandemic and last week we received some guidance from the city on recent changes. >> i'm jim morales.

as you know, the agency is subject to public meeting laws which under state laws refer to as the brown act. brown act requires that the commission meet in person. allow the public to participate and provide maximum opportunities for the public to be part of your deliberation and discussion. there's a section in the brown act that allows for teleconferences because it requires that each location where there might be a teleconference location where commissioners at the location using teleconferencing that they would -- the public will be able to attend those locations. 18 months ago when the state -- when the governor proclaimed

that it was a state of emergency because of the covid-19 pandemic, as part of the governor's executive orders and to protect the public's health and safety, his orders suspended the requirements of the brown act that governing bodies meet in-person and basically lifted the restrictions on teleconference. as a result many other governing bodies around the state were able to meet entirely remotely, still providing for public comment and participation. on september 16th, the legislature passed a law that changed the standards for the remote meetings. the standards are now that the local body that is meeting must adapt a resolution and make

certain findings to continue to meet remotely. those findings are that a public state of emergency continues to exist and that either state and local officials are recommending that social distancing be promoted or enforced or that meeting in person creates imminent risk to public health and safety. you have a resolution before you that makes findings that the state of emergency continues. the governor's state of emergency as well as the mayor's state of emergency continue to remain in effect. also, that our city health officer continues to recommend social distancing as a way of mitigating the risks associated with the pandemic. in addition, the health

department continues to recommend that boards and commissions meet remotely to protect the health and safety. you have before you the resolution, the law also requires that when you hold remote meetings that you abide by certain standards. those are attached as an exhibits. the commission to date has followed those standards for the most part. will continue hopefully to do so in the future. finally, i would note that this is an action that the commission will have to take each month. in other words, every month you'll have to make a finding that the public health emergency continues to exist and that social distancing has been recommended by health officers or that there's an imminent risk for meeting in-person.

this will be the first of perhaps several resolutions that you will see. with that, i conclude my presentation. >> chair bustos: thank you. madam secretary, do we have anyone from the public who wishes to provide a comment? >> clerk: at this time members of the public who wish to provide public comment on it item, should call 415-655-0001. access code 2482 190 7334. press the pound sign. press star 3 to speak. i will allow the public few moments to call in. mr. chair, it does not appear

there are no public comments. >> chair bustos: hearing no request. i will close public comment. i will turn to my fellow commissioners for any comments or questions they may have. commissioners are there any questions regarding this item? >> commissioner: no comment. >> chair bustos: i want to thank our city government for keeping us safe and for keeping in mind the health and safety of our public and constituents as well as the commissioners and staff. i want to thank general counsel morales as well as jaime and sally for keeping us compliant and making sure we're doing what we supposed to be doing. commissioners, may i get a motion for item 5a? >> commissioner: i move that

item 5a be accepted as given. >> chair bustos: may i have a second? >> commissioner bycer: second. >> chair bustos: please take roll. >> clerk: please announce your vote when i call your name. [roll call vote] the vote is 4 ayes one absent. >> chair bustos: motion carries. place call the next item. >> clerk: next is agenda item 5b, amending the community investment and infrastructure debt policy to explain existing practice and document debt management improvements. discussion and action resolution number 32-2021. madam interim director. >> commissioners, the remaining

two items on our agenda have to do with our issuance of debt for our work program. first up is an update to our debt policy. our deputy director will walk you through this item. >> good afternoon commissioners. we are coming here today to look at amending our debt policy. just a refresher, a debt policy is a set of written guidelines that direct the debt issuance practices in compliance with laws and regulations and best practices and management and compliance. the reason in we want to do this is because it gives our investors confidence that we are

managing our debt portfolio according to all the best practices and current legislation and that can translate into a lower cost of borrowing. which of course, is good for the agency and in the long run. we want to pay the least amount possible to borrow debt. as a refresher, ocii death policy was last approved in 2014. this policy was amended in response to a solution. since that time, a few things have happened. in advance of this next issuance, we want to amend our debt policy to incorporate legislative changes that have happened since the debt policy was last approved in 2014. help explain some of our existing practices and highlight some improvements we've made to our debt management program.

the -- this is quite a long process. this is about a year. that's because we really wanted to go and take an in-depth look at our policy and bring it up to the most current and recent standard of best practice. we researched best practices including standard issued by the gsoa or government financial office association. which is like the bible for all things government finance. we reviewed all the debt policy from our sister agencies so that would include the port, the m.t.a., the airport, the p.u.c. we looked at all of those policies and pulled out items that were relevant to us. we reviewed our best practices and other debt policies with our municipal advisor. we identified a number of changes that we wanted to make

to the debt people. -- policy. we made the changes and sent it to the wpta debt certification program. which was a program that uses debt policies according to set of issue standards and those policies that meet those standards receive official certification. we did receive that consideration from the wpta. one of the primary things we're doing in amending the debt policy is incorporating legislative changes. the big one is health and safety code section 34177.7. essentially that legislative change allows ocii uniquely to issue new money debt under certain circumstances. those circumstances to are fund our affordable housing obligation and to fund

infrastructure. we also incorporated legislative changes required by government code section 8855 which sort of overall industry wide move to step up their game. the government code require that all debt policies have address five things. one of the purposes for which debt maybe issue, two the types of debts maybe issue, three the relationship of the debt and budget and four policy goals related to the issue balance and objectives and five internal controls. the response to the legislation were purposes to which debt maybe issued and types of debt that may be issued. in terms of the purposes for which debt may be issued, i think we've always had a shared

understanding of why debt may be issued. to put it in writing for full government, transparency and accountability, the debt policy states the debt proceeds maybe use to finance, environmental review design, acquisition and other predevelopment activities, public improvement, affordable housing and to refund outstanding debt. the types of debt that we can issue are defined by redevelopment. we can issue tax allocation bonds which is property tax revenue. and mello roos bonds. both are allow to issue new money bonds. in terms of existing practice,

what we mostly did in the debt proposed amendment was to make a more complete description of our practices for issuance infrastructure and managing debt including staff role in responsibility and then to clarify the type -- how we think about certain policy and financial consideration. for example, when we would use a cash versus assurety fund reserve. we look at least cost, what is the impact on the cost issue of the debt. under what criteria we would negotiate. debt approval procedure is something you're familiar with. because you are a big part of it. first, we have to get the

approval of the oversight board and we have to have the department of finance approve the issuance. we come before you twice. once with the bond purchase agreement and now to confirm the sale and to approve the preliminary practice. in terms of highlighting our debt management improvement, we've been working really hard over the last two or three years to improve our debt administration. we created a financial information website which is a website that compiles all of the financial information about ocii in a single place and for potential investors to access. we formalized account payable policies and procedure and toen sure bond procedures are spent according to applicable regulations. we updated our disclosure

policy. you proofed that updated policy in the spring. we entered an m.o.u. and t.t.x. to -- [indiscernible] so we can be making the most of our proceeds prior to expenditure. you approved that last year as well. that is the end of my presentation. i welcome any questions. >> chair bustos: thank you. madam secretary, anyone from the public wishing to peek on -- speak on this item. >> clerk: members of the public wishing to provide public comment should call.

to dial 415-655-0001. enter access code 2482 190 7334. press star 3 to submit your request. we'll give them a few moments just to call in. mr. chair, at this time, do does not appear any member of the public wishing to comment. >> chair bustos: i'll close public comment. i'll turn to my fellow commissioners for any questions they might have. commissioner scott? >> commissioner ransom-scott: no question. thank you so much for all of the information you just shared.

it's just a heart beat for me and our fellow commissioners that we stay on top of everything it takes to give affordable housing in the city of san francisco. this great city that so many of us love and want to stay in and making it affordable is the most important thing to help that. so thank you. >> chair bustos: commissioner bycer? >> commissioner bycer: no questions. like commissioner scott, really excited and grateful that staff are dotting their is and crossing their ts. it may same like when talk about issuing debt. debt is the core part what ocii does. thank you for trying to make it simple and understandable as

possible. >> chair bustos: thank you. vice chair rosales. >> vice chair rosales: only question i had is the reference to cost of environmental review that we can issue debt for purposes of financing that cost. does that include legal fees? >> that's a great question. in general, we can -- the process that we use, for every issuance, we issue bond council. we go over the sources as part of the issuance process. i'm actually going to direct that question -- i know we can fund the e.i.r. cost. i will refer that question to

our bond counsel. >> yes, you can finance legal fees related to the cost of issuing the bonds. commissioner rosales, were you thinking of other legal fees? >> vice chair rosales: yes like land use attorneys to review the environmental impact reports. for defensibility, compliance. those kinds of legal costs. >> the short answer is yes. depending on the specifics of the legal fees and the projects and whether they can be capitalized in the project. we may need to be thinking about issuing taxable bonds. it's a question of if you can

issue tax bonds. the answer is yes. >> vice chair rosales: thank you. >> chair bustos: thank you. thank you for the question. i want to echo everybody. thank you so much for being on top of this and making sure that the city resources are maximized and are -- the public deserves it. i want to thank you for that. commissioners, may i get a motion for item number 5b? >> commissioner: mr. chair i move that we confirm the issuance of new money tax allocations bond. >> we're talking about the debt

policy. [indiscernible] >> commissioner: my mistake. >> we updated the number. sorry about that. >> commissioner: i move that we amend the passing of agenda item 5a, resolution number 32-2021. >> chair bustos: thank you commissioner scott. may i have a second? please take roll. >> clerk: commissioner brackett is absent. [roll call vote] the vote is 4 ayes and 1 absent.

>> chair bustos: sorry commissioner scott, i was looking at another page. all right, please call next item. >> clerk: next is 5c, confirming the issuance money tax bond of the california health and safety code to finance affordable housing obligations in an aggregate principle amount not to exceed $130,400,000. approving preliminary and final official statements a continuing disclosure certificate and other related documents and action. discussion and action resolution number 33-2021. >> thank you. as you heard, commission sees bond issuance action. on july 20th of this year you took action to approve the issuance of these bonds to fund affordable housing. since then, we've successfully completed a number of other

approvals including the oversight board and the state department of finance. we now return to you for the final approval of the bond issuance. john daigle will join from the finance team to answer any questions that you have. >> good afternoon chair bustos and commissioners my name is john daigle. i'm debt manager for ocii. this will be the final action of the commission to move us towards the completion of this transaction. issuance of the 2021 affordable housing bonds. basically, we'll go through

previous approval, review of the enforceable obligation. first action is approval of the budget by the commission on april 20th. resolution 13-2021. the budget was ratified and approved by the are board of supervisors and signed by the mayor july 30, 2021. the authorization of the bond issuance was first entertained by the commission on july 20, 2021 and it was approved and a it allowed us to get going in earnest and approve the sub supplement to the bond as well

as bond purchase agreement. our next step immediately afterwards is to go to the oversight board. they approved the issuance as well. we forwarded that to the department of finance who came back and record time with an around around september 3rd. just to review of authority. you all familiar with this and i don't think i need to read through it all.

the current plan is for the 2021 bonds it fund 386 units of affordable housing. which is constituted about 17% of ocii's remaining affordable housing obligation. the projects currently anticipated -- [indiscernible] circumstances change the funding might be reprogrammed to other affordable housing projects.

we want to make sure that we are able to use the money for other projects that's necessary. the proposed action in the resolution before you conforms the issuance of the housing bonds. the preliminary official statement, the p.o.s., is released prior to the bond sale and it informs the investors of the legality revenue source of repayment. it includes information that would affect reasonable investor's decision to buy the bonds. this is said to be the only information they are told to rely on. in the industry, the most

scrupulous attention is making sure nothing material or important is left out. after the bond sale, we have the final official statement, which is 98% preliminary official statement. there are things that aren't known until the bond is actually sold, the amounts for the various maturities, the interest rates and so forth. those all get filled in and few weeks later after the sale, the final statement is provided to investors. this action also approved continuing disclosure certificate. this describes, and specifies the information required to dispose to the market after the initial sale as long as the

bonds are outstanding. this takes part of the annual report that is published. it also requires that we do an interim update, material revamp. legally defined that would affect the repayment of the bonds or the rating. in reviewing the preliminary official statement, the commissioner can consider to the best of their knowledge

accurately inform investors and purpose of the bond. in confirming the issuance of the bonds, the total amount approved will be $130.4 million. [indiscernible] looks like the amount will be -- [indiscernible]. the funs will be spent as described in the uses down

below. it's possible that number may change as the planning process continues. based on marketing conditions as well. the project fund, based on the $123,655,000. it's important that the project funds will be funded with $116,500,000. the scope of the projects or detail of the project change, those numbers will change. the projects will be adequately funded. to summarize, the p.o.s. and o.s. approved. there's the authorization.

we have three times as much money available as we need to make these payments. associated risk factors includes reduction in the tax base and assume values as well as natural disasters. -- other financial matters, this will be our first social bond. they don't differ in their purpose or any other material aspect. it's really just beginning to be used. as far as any international, or designation that is consistent

with sustainability development goals. we don't what this would have material impact on the bonds. we thought it was something you want to participate in and a way to designate our bonds in a way that reflects the actual use and purpose of financing. the disclosure statement, i think i outlined that. it describe the information required and obligated to disclose that annually. it's attached to the p.o.s. it's consistent with the continuing disclosure

certificate for previous bond issues. the final steps are obtain a credit rating. we did obtain our credit rating. the rating of confirmed by s&p at an a. we pushed for an upgrade. that was a bridge too far under the current circumstances with all the uncertainties around the economics of covid. we did uphold our credit rating. fair marketing materials is under way. we're having an investor coming up in the next few days. due diligence has, that's always ongoing. we completed the due diligence process as well.

the next stop will be to release the p.o.s. and then place the bonds and close the bond sale. with that, i will -- before i close my presentation, i would like to introduce the members of our team who are here. they will be available to answer any questions that you might have. we have alexis chu our disclosure counsel and is the primary author of the preliminary official statement. next we have david broadley who

is a municipal advisor. previously called financial advisor. gary kidhada. david neely from urban analyst. david puts together fiscal consultant report which has extensive information at the end of the p.o.s. basically supports all the representations regarding the payments. it's a critical role.

with that, i complete my presentation and invite any questions. >> chair bustos: thank you mr. daigle. do we have anyone from the public who wishes to provide a comment on this item? >> clerk: members of the public who wish to provide public comment on this item should call 415-655-0001. enter access code 2482 190 7334. followed the pound and pound sign again. if you already on the phone and like to provide public comment, please press star 3 and raise your hand. let's allow a few moments.

it does not appear we have members of the public wishing to implement on this item. >> chair bustos: hearing no request to speak, i will close public comment. i will turn to my fellow commissioners for questions and comments. i like to start with commissioner scott. >> commissioner ransom-scott: no questions mr. daigle. thank you for your presentation again. as i said with berea, this is so needed. got many states that are affordable but they still do not do the social work that san francisco stands out nationally with. so thank you for ongoing work towards affordable housing for san francisco. >> chair bustos: thank you. commissioner bycer?

>> commissioner bycer: it's i didn't want to talk about debt. we had lot of people come to us saying the conditions of covid affected their projects and amount of housing they can build. this is a real testament to the ocii team and john, that we're able to maintain our credit rating in this moment. i think that's an important win. i'm excited to move this forward. >> chair bustos: thank you. vice claire rosales? >> vice chair rosales: thank you. i don't have too many questions. i want to a little bit more information on the social bond. this is the first time we're using it.

it's a new product or a new offering in the market. i love it. i think it aligns well with our values. i'm wondering if we can continue using or resorting to the social bonds in the future? john, can you address those? >> as it matures, we're early adopters on this. it doesn't require us to do anything differently with our bonds than we do already. it certainly has no cost to us. i think it's simply makes it clear to the marketplace, it emphasizes that these bonds are consistent with the values and the goals that were stated

earlier. i don't know why we wouldn't continue to do it. >> i would say commissioner rosales, this is a somewhat new product. certainly not cutting-edge in market risky way. we're following little bit in the city path. the city already issued a series of social bonds. these bonds fall under the larger -- [indiscernible] socially responsible investing. green bonds are also in this category. the p.u.c. has had a lot of success issuing green bonds. which is where you're saying that the proceeds will be used to fund products for environmental purposes.

i heard the p.u.c. start talking about this three years ago. what was interesting the first time they were in the market, they didn't see a big differentiation. what they did, they did a test where they you issued two very similar bonds at the same time. one is a green bond, one standard tax-exempt bond. this found that the green bond, because of the interest and socially responsible investing, actually was three times oversubscribed relative to the tax-exempt bond. that market pushed their costs lower than they had not. over time, they've become really starting to leaning into this. really become kind of really built a name for themselves as a green market issuer. they've been going to lot of

conferences and really been on the cutting-edge of this sort of investing. in talking with the financing team and underwriter, we're hopeful by being one of the early adopters that we'll be creating a name for ourselves in this space and that investors will be looking to us as an issuer for socially responsible bonds. some day in the future, it will >> vice chair rosales: excellent kudos to everyone. creative thinking. like said, when i read it, i thought this very much aligns with our values and to the extent that we can, in every decision that we make, where we have the authority and discretion to make to continue to affirm those values. it's not just organization but it sends a message to other agencies like to follow in our

path. thank you. also thank you to the team. i did read -- i have to say that i didn't read every single page. i read most of the pages on the preliminary official statements. there's a lot of due diligence. thank you again. it was well represented in the staff memo to us as well. >> chair bustos: thanks. just echoing all the commissioners implement about this wonderful work team. we are leading the way and walking the talk. that's a beautiful thing. amen to all your work that you doing to make our planet and our communities better. i will need a motion for this item. may i have a motion?

>> vice chair rosales: i will move the item. ransom-scott i second that motion. >> chair bustos: please take roll. >> clerk: please announce your vote for item 5c. commissioner brackett is absent. [roll call vote] the vote is 4 ayes 1 absent. >> chair bustos: motion carries. next item. >> clerk: next order of business is item 6, public comment on non-agenda items. >> chair bustos: do we have anyone from the public who wishes to provide a comment? >> clerk: members of the public who wish to provide public comment on non-agenda item should call, 415-655-0001. meeting access code 2482 190,

7334. if you want to provide public comment, please press star 3 now. it does not appear there are any members was public. >> chair bustos: okay i will close public comment. please call the next item. >> clerk: next order of business is item 7, report of the chair. >> chair bustos: i have two items i want to bring up and the items of thanks. i want to thank commissioner bycer who is on a committee on some of the odd work -- art work

that will be installed in mission bay. he's representing our commission on our committee. we're hoping to have some wonderful art that will be displayed there. commissioner bycer, thank you very much for agree to be part of that committee. second is i want to thank commissioner bivett and commissioner rosales. as you know, especially members of the public, the western edition, which was known as the heart of the west was decimated because of the work of justice hermann and the redevelopment agency. families were given certificate of preference to be able to come back. although that coming back lasted, the wait time was about

40 years. many of those who had the original certificate of preference passed away. many of those kids of those people grew up in other places and actually found a new home. the grandkids and many of those after them were saying they want to come back to their home of san francisco. we did all we could to expand the certificate of preference program, being able to have other people or the next generation inherit it certificate of preference. but our commissioners rosales and brackett took it a step further and worked with david chiu and the state legislature. last wook our governor signed in law extending the program for all descendents. that's a huge deal for write the wrongs of redevelopment of the past. i couldn't be more proud of this

commission and the work that has gone on to preserve the certificate of preference program to do right thing. i want to publicly mention that and want to thank all of the commissioners who worked so harding on doing the right thing. i want to thank you for that. please call the next item. >> clerk: next order of business is item 8, report of executive director. >> thank you. commissioners, my only report is to say i hope that i will see all of you next wednesday at 11:00 at the crossing at east opening ceremony. on the -- we hope to see you there. it should be a fun event. >> chair bustos: thank you.

are there any commissioners that have any questions for our interim director? please call the next item. >> clerk: next order of business is item 9, commissioners questions and matters. >> chair bustos: this is our opportunity if we have any questions or comments? seeing none. commissioner scott? >> commissioner ransom-scott: i cannot hold back. i'm in tears with your announcement. that is so huge and historic. i cannot hold back. i can't. i want to thank you, mara. can't thank you enough. not just because of relatives, friends being a native. 75 years i seen people beg to

come back and a way to come back. it's something that they can come back to. this is so huge. i hope there's a script a way that we can continue to -- this needs to be announced at every meeting going forward. it won't get out with one announcement, one news media. it needs to be an ongoing announcement. this is historic. so thank you. miguel, just every one -- i can't wait to thank assemblyman attorney david chu. this is huge. >> chair bustos: thank you commissioner scott. it's our momentum of doing the right thing. also, within the same week the

governor signed legislation that gave back beach-front property in los angeles. southern california had belonged to a black family. that the city took away. after 100 years, they're getting their land back. it's very exciting times. the cool thing about this, i think hopefully everyone realizes that life is not a zero sum game. there's enough for everybody. we should be celebrating in these wins for communities that have been neglected, marginalized and shut out. i'm very excited. thank you commissioner scott. any other commissioners would like to say anything? okay. please call the next item.

>> vice chair rosales: i want to thank commissioner brackett who is not here. she drove the issue, the staff as well, sally and everyone who basically just pushed forward on this very momentous position, policy. there were some question whether it would be approved by the legislature. here we are. i want to note that our claire -- chair like to call up on occasion. we want you to come back home commission. i think this is a nice touch to that message. to the community. if we can, we should put it on our website. >> chair bustos: definitely try to do that. this is wonderful. i'm glad all of you are --

commission and staff, thank you. next item? >> clerk: next order of business is closedsession next order of business is item 11. >> chair bustos: we need a motion to adjourn. may i have a motion and a second? >> commissioner ransom-scott: i move that we adjourn the meeting. >> chair bustos: thank you commissioner scott. thank you so much. we will adjourn this meeting at 1:58 p.m. thank you.

>> chair haney: i'm matt haney, chair of the budget and finance committee. our clerk is miss linda wong, and i want to thank kalina mendoza of sfgovtv for broadcasting this meeting. miss clerk, do you have any announcements? >> clerk: yes. the board recognizes access to city services is essential and invites public participation in the following ways. public comment will be available on each item