>> director rubke? >> two access disability related items, one the focus of overcrowding and i know just wheelchairs in general and other mobility devices take up more space. so those folks are more likely to be left behind on the platforms and the second thing i want to ask about is the facilities especially in the sunset. i know the platforms, there are not so many accessible stops on the n lines and the other sunset lines. so i know that is a space issue and kind of a streetscape issue, but it does

again kind of affect the service for our people who need level-boarding out in that neighborhood. so i would just be interested in any funding sources to go after in terms of making the facilities happen over the years. i know it's not exactly right in what the presentation is about, but it's related. >> i think we have had funding to put in some of the elevated stops that allow for level-boarding. we have a project now that i think is going to add another three or four of those, which in the big scheme of the number of stops isn't a love. but where we can get them at the key locations we'll do and continue to expand that, so we get more accessible boarding throughout more of the system. >> thank you. it just makes such a difference for the folks waiting for

trains. >> thank you. i think we have public comment. >> one person has turned in a speaker card, john decastro. >> good afternoon again john de[krao-frts/], castro. i used to ride montgomery to mariposa and 35-40 minutes is the meantime. it's kind of ugly, i could work it almost as fast. the cris in potrero hills and dog patch, so you need to pay attention to us and i realize the subway is the backbone of

the system and for bay view through political reasons and parking reasons, and this and that a few years ago and that eliminated the dedicated right-of-way that somebody told me cost 8-10 minutes of travel time through bayview. i think the other thing too on the communications, the thing that commissioner heinicke was talking about, if there is a delay in the subway that is running more than five minutes, someone from the ops center out to come on and say there is a problem and have a train out of service at civic center or whatever, rather than letting us stew in our juices and wondering what the hell muni is up to? the electronic sign board, the tvs in the subway at powell and montgomery are hardly ever accurate. if you look at them, i have

learned how to read them and figure out where the train is, because i don't believe it when it says 2 minutes to the next end or whatever. i am a common rider. so anything you can do to help bring this around and last comment, would i love to get you to 18th with the e line or n line to have better service. >> thank you, mr. decosta. >> mr. reiskin, i know it says signal priority repaired on 3rd street. >> i think some of the points mr. decastro is making and some that folks made a number -- a couple of meetings ago about the t3rd line were valid and that the signal system along 3rd street was not functioning as designed and it was in part a maintenance issue and some other issues that we have since been able to resolve. it's something that i was made aware of when i first came here.

we got things -- we got -- i think more than 90% of them functioning properly. then it fall into disrepair again and they have since been put back into working order and now we have our traffic engineers evaluating to make sure that not only is the hardware working, but the design is work as intend and also looking at places, where we might improve the design to enhance the transit priority. because there are some locations that still have more auto priority because they are intersecting main streets such as cesar chavez, 16th and 3rd, where we might -- where i am eager to make adjustments to give stronger transit priorities. so that the folks on the hill won't choose to drive downtown, but find the t to be more reliable. i think is there lots of opportunity for improvement of the t on 3rd street to get it working. at least as designed, if not

better. >> thank you. i know i for one am eager to support those adjustments along 3rd street. we all rode those and experienced it firsthand. thank you very much. this was not an action item and i think we can move on. i know we have still our next agenda item and people have been waiting for a while. >> item 13, authorizing the establishment of a commercial paper program to temporary finance the design acquisition and construction of sfmta approved projects and for other sfmta-related purposes, apointing state street bank and trust as the letter of credit bank. >> what is maybe less exciting, and what might be a little bit of a dry item here,

but important and apparently also a legal requirement that we walk through an actual presentation is a mechanism that will help us move these projects faster. sometimes projects aren't moving as fast as we would like them to for cash flow issues or waiting for a grant agreement to get executed or wait if anything anew fiscal year to start. this is a very important effective mechanism used by the city, other city agencies, other transit agencies with the authority that we got by voters to issue our own debt. and this is something that i think we previewed for you sometime last year. a very important tool that will help us better, more eventually deliver our capital projects, our great cfo will lead the presentation. >> thank you, director reiskin

and i have a whole team. the department of finance, attorney's office, and two financial advisors, and are public financial management and bond council. so it's taken a lot of effort to get us to this point. so i indulge your patience. we have to go through this to get it on the record and a appreciate it. there is an overhead, if we can get that on. not powerpoint, but overhead. we're in front of you to authorize the issuance and sale of $100 million and to issue one or more tax exempt series and we're asking your consideration to authorize three major documents, and ipa agreement, issuing and payment

agreement with u.s. bank. a formal letter of credit embureau of alcohol, tobacco, reimbursement with state street and agreement with luke capitol and morgan stanley and authorize director of transportation to make necessary modifications. to give you background, proposition a is a really helpful tool for us because the capital intense terri intensive agency [speaker not understood]

a great additional tool to our kit. and commercial paper is really interim financing vehicle and i think we went through that last time, but let me repeat it and it's basically the interim basis where we figure out long-term financing strategy. that has been sorely missing from our portfolio. we have been basically pay as you go and wait for the grant and this will really allow us to stop projects and move on them. it's only issued and funded when they are needed and commercial paper is maturity of 270 days compared to 30-year revenue bonds that you authorized a year-ago. on the maturity date, rolled over and subsequent issuance of subsequent notes and ultimately will be retired either through paying back the commercial paper through an alternative revenue source that we're

waiting for or take-out through long-term revenue bonds and those are the two methods we'll be using to retire the commercial paper. they are all use it to fund capital programs. so we're a little bit behind the curve on that. so the documents before you -- where are we here? let me just talk a little bit about this slide. i am losing myself here. so once again we're diversifying our source of financing and the reason we want to include it in your program we t includes the efficiency of our debt program

by reducing the number of times to go out long and gives us short-term, interim financing vehicle and minimizes and eliminates the need to pay interest while we're doing construction. so basically we don't start paying debt until the construction occurs, because the short-term vehicle, the cp allows to us do that. it also reduces borrowing cost because short-term vehicles are much less costly than longer term and you will see the great rates we got in a little bit and simplify ours tax compliance. these are the four major reasons to incorporate cp into your program. the team behind us helped to pick the bidders and negotiate the agreements.

it's an agreement between mta and the paying agent and the paying agent them to issue paper notes and the agreement includes security interest on the general fund revenues, the revenue fund and create secure by subordinate interest of revenue bond and taking a second tier position on the same set of revenues. the agreement provides the draws and letters ever credit as i mentioned that we'll need on the 270-day basis to secure the paper notes. the reimbursement agreement covers the principal interest. the term is five years. and the interest rate is not to exceed 12% per annum and the

banks require a cap as we do. it is expected that the bank will repaid for the remarketing of commercial paper by the long-term revenue bounds or other sources of revenue that we identified. we could terminate the reimbursement agreement at our option. it's subject to termination fee [speaker not understood] the next agreement -- continuing reimbursement agreement. there are a couple of other risk areas that we want to make sure that you understand. we could -- the reimbursement agreement may be terminated if the bank or counterparty, which is state street, their credit falls below certain thresholds

by investors. this is the way to limit the counterparty risk so the bank goes below that threshold we have the ability to end the agreement. also that the current fee structure assumes that the mta's senior revenue bonds, credits remaining at the rating that standard & poors and moody's. if in event of a default occurs, the fee increases

automatically by 1%, commencing the day of default. we have those provisions that allow us and is there are some remedies and agreement in section 702, if you can't go to sleep and want to read further. the next agreement before you ask a dealer agreement with two banks, luke capital and morgan staney. luke would be the initial bank and we would access morgan if we needed to. the dealer agreement solicits a range -- the sales of cp and it has -- they have to be sold in accordance with the terms in the dealer agreement. it's not less than one year in the term and the cost is not to exceed .05% per annum of the weighted average cost, the average principal cp that is outstanding each quarter.

the next item is commercial paper memorandum that explains the security of the notes, including the bank letter of credit and utilized by the dealer as a disclosure -- and the cp -- the memo has no material disclosure about the mta. lastly, the item -- the commercial paper administration is joint by between us and the office of public finance. since they are already in the business and have the capacity, they will be drawing down on our behalf, but we will be initiating the request. so that is the agreement that we reached which i think works well for both of us. now this is the good news of

our -- we'll basically be paying .535% on the commercial paper; which is very attractive >> and it's about $585,000 a year on $100 million note. so that is a pretty attractive number. we don't expect total fees to exceed $700,000. we had budgeted a little over $1 million, so this will be savings in our budget. and the $700,000 will include the $585,000 that we're expecting to pay, the re-, but are reimbursement letter of credit and other costs. so pending your approval today, the next step will be to the bdr. board of supervisors and the controller will certify that we have the ability to take on this additional financial instrument. with that the team and i are

open for questions. >> thank you. andinging thank you for your patience, wait for almost the very end of the meeting to go through this. director, any questions or clarification [inaudible] >> good. thank you. i think this is great and as you have noted this is really important and we're kind of late to the game on this and it will give us a lot more flexibility. all in favor? >> actually, madame claire, before do you that, just for the record, no member of public has turned into a speaker card and i don't see anyone moving forward. >> moved. >> second. >> all in favor? >> aye. >> anyone against? great, the ayes have it. >> item 14, discussion and vote pursuant to administrative code section whether we conduct a closed session. >> move to close. >> second. >> all in favor? >> aye. >> move to closed session.