are back in closed session. >> item 10, adjournment. president mazzucco: all in favor? thank you.

icycle plant. our work with the mta facilitated activities. we spent considerable amounts of time considering an approving the latest update to the plan, providing clear ride visions for what can be accomplished in the next few decades. we also approved 22 prioritizations in sales of tax dollars for all districts of the city. those prior programs give us a very useful bird's-eye view of the sort of progress that we can expect in each area of the city in our fundamental position to compete successfully for regional, state, and federal funds at a time when competition is tougher than ever. at the end of 2010 we saw a

culmination of a three year long mobility study funded by the federal government in an effort to generate an american vision that has been successful in other parts of the world. we succeeded in asking the right questions, even though some of the answer still await completion. making sure that we close of the $150 million debt on the central son -- central subway funding plan, securing full funding from congress to bring $1 billion to the congress. achieved through the fund swap, becoming another way to leverage the power of this blockade for the benefit of the city's transportation program. this was the year that we had to step up in the congestion management agency.

the interface between the city's network and proposed high-speed rail line to link us with los angeles is an issue of daunting scale. we work through the year to make sure that the city could develop a coordinated position that could be delivered to the camp -- california high-speed rail authority. the sustainable strategy became another area of significant activity as we entered in phase closely with government and municipal transportation authority. this work will not only bear fruit in the next year as the regional transportation plan for infrastructure and investment strategy begins to reflect san francisco's needs and expectations, as well as its competitive position when it comes to projects that deliver performance by an efficiency in an already compact urban environment.

excuse me. i personally spent a significant amount of time working on this issue, reaching out to my colleagues and authorities around the bay area to cultivate the different elements. if this was not enough, we manage to get opportunities in 2010 securing the additional $5 million for san francisco transportation projects in the future. it was our first and only ballot measure to receive the effort. we have finally prepared the authority for the issue that i expect will happen in 2011 with another 100% clean fiscal audit. lots of activity. very rewarding results for everyone here. the pleasure of working with all of you in this collegial manner

with colleagues that have left us with a first-rate transportation authority staff on issues that are significant to the future of this city and helping the city lead the state and the nation. i am especially thankful for the help of the authorities two committees and the dedication of the commission shares -- chairs. i have been honored to have your trust over the past 12 months. thank you. this concludes my remarks. thank you. i called them together. we will do public comment afterwards. >> good morning, commissioners. executive director. i have a power point that i would like to do for you on the annual report. in appreciation for your time i will not give you specific

observations today. i will wait until that moment. i will of course be happy to answer any questions. >> thank you. -- supervisor mirkarimi: thank you. those are the shortest remarks you have ever given. along with the longest remarks i have ever given. [laughter] now, if anyone has any comments -- we welcome public comment for any of these. seeing no one, public comment is closed. please read the next item. >> item #5, election of chair and vice chair. this is an action item. the election of -- supervisor mirkarimi: i believe that we are -- sorry -- supervisor campos pella supervisor campos: -- supervisor campos?

supervisor campos: thank you. it is a short term, only 12 months. a lot has happened over the past 12 months. for purposes of continuity because of the work that is ongoing, it makes sense for us to retain the very important role that the chair has played. so, i supervisor mirkarimi: would -- i would nominate supervisor mirkarimi to continue as the chair of the authority. things to be proud of, like doyle drive, facilitating the environmental appearance drt, the approval of 20 to prop k projects -- 22 prop k projects.

something that is truly unprecedented. it was important for all of our constituents. i think that the work remains something where the continuity is needed. i would hope that the chair continues in that role. supervisor mirkarimi: thank you. supervisor avalos? supervisor avalos: thank you. i would also like to follow-up, backing supervisor campos' motion for supervisor mirkarimi for a second term. serving for only 12 months does not give the full benefit to the city. someone with continuity over a course of many years can achieve better results for the transportation authority. we had a good year in 2010.

i think that we really need to build upon that year. specifically i am encouraged by the work of the chair on doyle drive. as the supervisor mentioned, closing the 7 million service reduction in the mta budget. we also have the bike plan injunction lifted last year. chair mirkarimi was thoughtful and robust in the implementation of that land around the city. i want to encourage colleagues to also backed up supervisor mirkarimi for another 12 months. supervisor mirkarimi: thank you. colleagues? are there any other nominations malaper? nominations, can we do them together? madam clerk?

separately, then. if there are no further nominations, i will close the nominations. thank you very much. do we need to take a vote right now? or do we wait until vice chair? but now. colleagues? it is a roll call necessary? please signify if they will call is necessary. if not -- thank you. so sorry. subject to public comment, of course. any public comment on this item? public comment is closed. public comment is closed. colleagues? can we take this without objection? thank you very much. i look forward to serving you for another 12 months and working with you very closely. nominations for vice chair?

i am going to ask myself to speak, if that is ok. typically we are supposed to step them. if i am violating a rule, shocked me. i am going to ask for the region -- re-selection of the current vice chair, supervisor campos. in his capacity we have worked extraordinarily well together. especially as he has really taken a leaders said position in the plans and programs committee and setting the tone low-quality that we would like for working with the mta, insisting that they work well and in a most collegial of atmospheres with ta. stepping up to the plate strategically. when there was great controversy

about their service reduction, he came to me to talk about how intervened in a way that is not antagonistic but could greater facilitate producing those reductions. i cannot say enough about how well we work together, along with commissioner mar this past year. together i think that synergy speaks for the nomination of supervisor campos. any comments? any public comments on this? seeing no one, public comment is closed. taken without objection -- so sorry. >> for procedure, you need a second. supervisor mirkarimi: ok.

i will rescind that last vote. seconded by supervisor chiu. back to public comment, public comment is closed. taken without objection? so moved. thank you, colleagues. thank you, staff. please read item #6. >> item #6. increasing the amount of the memorandum of agreement with the recreation and park department by $929,380, to a total amount not to exceed $1,000,000, for palace of fine arts parking strategies implementation for the presidio parkway project and authorizing the executive director to modify certain agreement terms. this is an action item. supervisor mirkarimi: if no one has noticed, i am suffering miserably from allergies. i am doing my best to articulate without coughing. bear with me. do we have any comments on this particular item from commissioners?

seeing no one, can we open this up to public comment? if you would like to comment, feel free to do so. >> good afternoon. good morning. my name is [unintelligible] with [unintelligible] recreational parks. supervisor mirkarimi: please speak more into the microphone. >> my comments are fairly brief. we would like to thank lewis and his staff for making sure that this happened. i have worked with this staff to ensure that the impact to our tenants part dealt with and that they are earning important institutions in the city. we would like to thank you and

hope that you would proceed with this item. supervisor mirkarimi: any other public comment? seeing no one, public comment is closed. taken without objection. item number 7. >> award a three-year contract to knn public finance, in an amount not to exceed $250,000, for financial advisory services, with two additional one-year extension options, and authorize for the executive director to negotiate contract terms and bid conditions. this is an action item. supervisor mirkarimi: any discussion, colleagues? any public comments? take your time. the other microphone, please. >> good morning. i am just curious, you know, why

we are hiring what appears to be an outside contractor when we have people within the department that could do this just as well. probably get a cheaper rate. i do not quite understand why we are hiring outside people. people to do things that we should be doing in house. supervisor mirkarimi: thank you. any other public comment? in order to respect those remarks, would staff like to quickly speak to why is that a contract is awarded to someone outside of city hall? >> mr. chairman, it is normal practice at the transportation authority to have the head of financial advisers help us work

through the complexities. particularly getting the agency rated. this is a significant issue that requires due diligence and this is the kind of activity for which it is advisable to have advisers that are very up-to- date on the requirements of the market and ratings agencies. we are simply following through with what has been expected in that regard so that we can move forward with the highest rating, making sure that we do everything in the most appropriate way possible. supervisor mirkarimi: thank you for the explanation. colleagues, i believe that the house has changed. would you please take the roll

call, madam clerk? >> [roll call] supervisor mirkarimi: so sorry, you are here. >> [roll call] the item passes. supervisor mirkarimi: next item, please. >> item #8. accept the audit report for the fiscal year ended june 30, 2010. this is an action item. supervisor mirkarimi: any particular discussion? supervisor chiu: with respect to

the director, there was discussion of doing a similar audit of the county transportation authority because the kind of financial audit that we were reviewing was separate from a management audit. i am wondering if we could get something out in the terms of when we get a performance audit of the transportation authority taking place. >> 24 the question. this came out of the finance committee meeting. i believe that the authority chair asked the same question. scheduled for april so that we can conclude with the other report. that will be happening and you will of course be receiving a draft scope to initiate that process. >> i would imagine that every

member of the authority would be able to make suggestions? >> absolutely. of course, the process and the contractor will come to the full board for approval. the ultimate ability to look at the scope of the audit. supervisor campos: i would like to see that we moved expeditiously to make sure that this agency is subjected to that same review. >> that has been my understanding from the start. this will be the second such audit that the agency has. the first one happened almost one decade ago. supervisor mirkarimi: to that point in your reference, commissioner, i want to make sure that we are on the right path for the audit of the mta as the commission is subsidized.

i know that within programs you have discussed this, but before the new year there was a necessity to bring the auditors and the ta together. i want to understand -- this is ongoing? ironed out to the degree that it can be expected oas an effective audit? >> correct. it is something that we continue to work on and is something that we will have a more in-depth discussion on. supervisor mirkarimi: which meeting? >> we are not sure which state, exactly. supervisor mirkarimi: colleagues? further public comment on this item? seeing no one, public comment is

closed. the item passes. >> item #9,adopt positions on state legislation. this is an action item. supervisor mirkarimi: any further discussion on this? seeing no one, further public comment? public comment is closed. taken without objection. >> #10, allocate $35,000 in prop k funds, with conditions, to the department of public works for construction of a bus bulb at balboa street and 37th avenue, subject to the attached fiscal year cash flow distribution schedule. this is an action item. supervisor mirkarimi: this was the liberated in the planning committee. any public comment? seeing no one, of public comment is closed. so moved. >> item number 11, adopt the 2010 fiscal report. action item.

>> mr. chairman, i have a quick power point presentation on this item. you have a hard copy in your packets. i will be very brief. if i could have the power point? there we go. as was said earlier, this is fulfilled in section 131303, requirements for the public utilities code prompting an adoption by this board, going

beyond what was adopted in the prop k plan. as you know, the authority has other roles. the local sales tax, under the role of complying strategic roles, a program administered by

the bay area air quality management district with two components. one of the regional, administered directly by the district. and a local component for the manager fund, one that you as the authority board administered. and the latest addition mentioned earlier is prop aa the annual vehicle registration fees of with the authority is now the administrator. $5 million per year in revenues for transportation purposes. here is an overview of the allocations and expenditures during the period covered by this report. this report is by one of those vagaries of state legislation, covering the calendar year. of course, your budget is on a

fiscal year. this is essentially january 1 through december 31. this chart looks at allocation'' and expenditures for the calendar year 2010. you can see that there was a total of $143 million in prop k allocated to various categories and products with expenditures of $52 million. you can also see that allocations today are almost $780 million with expenditures on the order of $452 million. four categories approved by voters when prop k was approved in november 2003. transit services, streets and traffic safety, as well as transportation traffic system management. the largest of the