the governor has embraced the coalition perspective which is, let's wrap in the reenact the necessary statute pursuant to proposition 26 so that we save those funds that were adopted a year ago. we think that has a reasonable chance of passing. there were two other notable elements in the bond act -- i am sorry, in the budget for transportation. one is they tried to maintain faith with the amount of transportation assistance to operators, a target pursuant to legislation adopted in 2010. about $350 million to be distributed statewide to operators. due to a shift in the estimate of the source of the revenues, it is probably more like $330 million. nonetheless, this has been a target of previous administrations to redirect the general fund.

they are going to try to finance transportation operations at the minimum acceptable level, which is a change in attitude in sacramento which is welcomed by transit operators across the state. finally, the last point to make is, that the governor has made proposals that would shore of the general bond plans that are earmarked for transportation. they decided to dedicate truck weight fees, in lieu of the general fund, to pay for general obligation debt service that the state would otherwise have to pay for out of the general fund. that is projected to be as much as $700 million in any one given year. so that was money that we were not counting on. that will now be used to shore up transportation general obligation bonds, which is an

important thing in the coming years. commissioner mar: we have a question from commissioner elsbernd. commissioner elsbernd: we have you here, so i went to take advantage of you being in front of us. just to give us a quick primer on what the governor means when he talks about realignment to local government. i know that may not be a specific question to transportation, but it will hit everything that we do. >> there have been factual, direct reallocations of local redevelopment funds. and there is the programmatic part and the underlying part. on the programmatic side -- i did not spend any time mr. looking at the governor's strategy in the realignment area -- but it is looking to shift certain programs from the state to local area, in areas like public safety, child care

provision, and certain medical and mental health services. i do not know the breadth and scope of those. i could probably provide -- commissioner elsbernd: generally shifting from state to local, but maybe we will get some additional revenue? >> correct. by repealing the statutory reauthorization for development agencies, they ceased to exist. by action we take -- the property tax in california would then be available for local expenditures for the state programs. in a nutshell, that is how that would work. it sounds counter intuitive, in contrast to proposition 22, which says you cannot move the money, but they are not moving

the money. they are proposing to eliminate the authority for the blight condition, any incremental financing with property taxes. in addition, i believe certain portions of the taxes that are due to expire, some at the end of this year, some next year, were adopted in 2009. the permanent extension of that was declined by the voters in 2009. some of those funds will find their way to support the transit activities. commissioner elsbernd: my question for staff, transportation, we are talking about redevelopment, but what will be the impact on transbay and the overall transbay plans? i am sure commissioner kim is

very concerned about that. we are doing every development in commissioner cohen's district. it is all going to have a trickle of fact. i know is not specific transportation funding, but it is important. -- effect. if you could let us know, we would be appreciative. >> we are looking and that already. obviously, we have seen the ability to leverage tax increments for infrastructure projects is a key, especially in an urban setting like ours. we want to make sure that remains the case. commissioner elsbernd: just another one to look at, the park merced project. i know that there are some taxes that could be used to improve

the 19th corridor. that will be key to whether the project is approved. >> it is also a fundamental mechanisms for listing the private sector in participating with infrastructure building. we want to see that continue. commissioner elsbernd: it is also my dream financing mechanism for caltrain. commissioner mar: thank you. anything else? colleagues, if there are no other questions, let's open this up to the public. is there anyone from the public that would like to comment on this item? seeing none, public comment is closed. colleagues, can we move the recommendation forward without recommendations? thank you. are there any other items of for us? >> item 7, introduction of new items. this is an information item. commissioner mar: are there any items that colleagues would like to bring? seeing none, let's open this up

to public comment. is there anyone from the public that would like to comment on this item? seeing none, public comment is closed. are there any other items before us? >> item 8, public comment. commissioner mar: is there anyone from the public that would like to comment on this item? seeing none, public comment is closed. thank you. >> item 9. adjournment. commissioner mar: thank you, everyone. meeting is adjourned.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