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 categories is the transit category. the only one where there is a responsibility for funding and operating program to provide special services for people that cannot use things like trans.

let me give you a quick overview of progress on the signature projects. i am going to respect your time and the fact that the chair has already covered several of those key areas in his own report. i do not want to repeat. let me show you a few figures and interesting data about the program. the parkway is the first one with a cost of $1 billion. construction of late 2009, this project received $52 million in american reconstruction recovery act funds. phase two of the project, roughly $500 million, was approved by the transportation commission by the public-private partnership, to which we referred to as p3. that phase of the project will have a cost of $488 million,

reflecting savings on the life cycle of the project at $145 million over procuring new the use of traditional design in the building process. just $173 million on completion of construction, the end of 2014. payments that stretch over 30 years, called disability payments. constituting a 30 year warranty on the project. the consortium that will be doing this will have a responsibility for making this an opportunity as well. we are collating this with caltrans. this project is truly a trailblazer in the state. probably a very interesting model for how the state might be able to incorporate in a very positive and measured way the help of the private sector in terms of -- expertise in

financing. taking advantage of the estate and being able to deliver on the infrastructure needs of the state in the future. there has been significant progress on the transit center as well. the funding for the project, which cost about $1.6 billion, $270 million in prop k as approved by voters. the project was received in 2010 with a $400 million allocation of funds. the component of the terminal that would be underground received rail service once the, was constructed. it was also approved in the early parts of 2010 for $174 million. a long-term, low-interest loan from the federal government. the lead agency for that is the dgta.

progress has been significant, opening a temporary bus terminal for service. there was a groundbreaking ceremony that a number of you attended with speaker pelosi in august. immediately after that the old terminal began demolition, which has been completed. there has been a contract for $180 million for the construction of the initial stages of the transit center also awarded this year. the central subway project with the authority directed funds has resolved a funding gap. as the chair mentioned earlier. largely through prop k. it is 90% designed in terms of

the tunnel portion. station design is that 65% completion. the utility's completion pack has been certified, a major milestone. a project intended to open the service in 2019. the lead agency is the transportation agency. as far as bus rapid transit projects, there has been significant work on those programs as well. small starts, federal funds, which could bring the project to as much as $75 million in federal funds. there has already been a milestone in terms of funding from the climate initiatives program, the draft being

completed will be circulated in the next month, ground-breaking -- completion of projects scheduled for 2012. making progress into one -- throughout 2010. the feasibility study demonstrated that the concept is likely to achieve a 15% reduction in congested levels. there is an authorized section of the study that should take us to a position on whether to implement the pilot in the beginning of 2015. this is of necessity, you can

already see that i could spend a couple of hours here, but i will spare you that. i will check off a few of the subjects that are continuing to move forward. the county land use prioritization plan is a very significant multi-jurisdictional effort that is on the way. completed in 2010, some of the recommendations are moving through the process for implementation. the central freeway boulevard regulations study, we have had significant advances with their own model traffic advances. allowing us to track bicycles so that they can be modeled more effectively. the first of its kind in the country. as the chair mentioned before,

we have been significantly involved in the sustainable community strategy process for the region, where the authority is coordinating improper with it the other san francisco agency families. last but not least we have kicked off our 30-year look at the san francisco transportation infrastructure service program. it promises to be an interesting process this year. also because of the implications of the sustainable community strategy that promises to be at least bringing to san francisco the debate about whether we can absorb more growth, population, and the jobs and what had been anticipated until now.

in order to have a more efficient transportation infrastructure. finally, we just approved the audit report for 2010 without any findings or recommendations for improvement in this case. last but not least, we spent 66% of our direct contract dollars for professional services and all local businesses. as i said, there is a lot more information in the report. let me just remark that several other areas that are not covered in the report are of significance. for example, there is a major volume of transit rehabilitation work that has been done, funded

with state funds and prioritized by the authority. including things that i am sure will come back as special reports to this board. there is also progress being made in bicycle facilities and we should have a special topic on that. at a future meeting. given the injunction of the bicycle plan, it brought out a lot of energy to get those projects. just in 2010 there was more than 8 miles of new bicycle lanes to drive. other bicycle lanes were put in by the project. there were over 750 by cracks installed. i think that a short, annual report does not do justice to that.

i promise you a separate presentation on some of these items. but this does give you a bird's- eye view of the opportunities this year. thank you. supervisor mirkarimi: colleagues, and the question? -- any questions? seeing no one, any public comments? seeing no public comments, public comment is close. can we take this without objection? very good. the item is moved. thank you for a strong year. i look forward to 2011 as we are already under way. madam clerk? >> introduction of new items. supervisor mirkarimi: any discussion on this item? seeing no one, any public comment? seeing no one, public comment is closed. next item, please.

>> item number 13, public comment. supervisor mirkarimi: public comment. public comment is closed. next item? >> item 14, adjournment. supervisor mirkarimi: very good. thank you, colleagues. welcome to the new commissioners that are here. we look forward to working on transit projects with the mta. have a great day and a great rest of your tuesday. meeting adjourned. >> thanks for coming today. we are announcing are temporary

homeowner's property tax reduction program. this is what most assessor's up and down the state are doing. homeowners are reliable -- of all property owners are eligible for a temporary, 1-year property-tax assessment reduction if they believe or if we believe dave -- the assess the value has fallen above their market value, which means that the value would be lower than the market value. in general, homeowners who are eligible, chances are, they purchased homes after 2003. we do get applicants who have owned homes since 1995 or earlier. in general, anybody who is owned their home prior to 2003, they are doing well, which is good news. chances are the market value is higher than the assessed value, meaning the property appreciate it. people we are able to offer little relief for, the sad news is, their homes have

depreciated. there will be a little bit of relief for them. in general, last year, we saw 6400 applicants in comparison to four years ago when we had 248 requests. the form a simple. it is one page. name, telephone number, e-mail, and the address you are applying for. if you can give us sales in formation of similar types of homes, we do hope you can give us that. if you cannot come maternity leave blank and sign it. e-mail or fax it to us -- if you cannot give us that, leave it blank and sign it. e-mail or fax it was. tenderloin downtown, south of market, mission bay, and south beach. those were many of the new high-

rise condominiums that went in to market the last four or five years. we have seen a significant amount of depreciation in those areas. gaviria that has seen the largest value drop is -- the other area that has seen the largest volume drop is the outer mission, amazon, those areas have seen the largest percentage drop. it is where we have been hit hardest with foreclosures. we make sure that we take an extra look. we proactively have been reviewing every home that was purchased after 2000. even though we think eligibility is for people up to 2003, we review any homeowner who purchased after 2000. that was roughly about 15,000 homeowners. of that, reduced -- no one had to apply or call us. we did this on our own. we reduced 10,000 of those homeowners.

roughly, you have 10,000 reductions that we did on our own. 1700 reductions were done through this application process. 5000 time shares is how you get to the 17,000 number. just to give you a comparison, it is quite a bit in san francisco. these are huge numbers, larger than the dot com bust. alameda and santa clara did about 1000 come a tenfold. -- 1000, tenfold. we are doing better than our counterparts in other parts of the bay area. i feel fortunate. the tax reduction was about 21 million in taxes that were not collected. 21 million in taxes were not collected. that is a significant number. it is out of a $6.5 billion budget. overall, the difference to the

city is still rather small compared to what it meant to many of the other counties in other areas. let me stop there and take questions. >> [inaudible] >> 6462. of those, we actually reviewed only 4177. many of those were already reviewed. we have actively reviewed them. some of them were not eligible. >> [inaudible] >> anybody who has gotten a reduction, they don't need to apply. we will look at it again. if you have gotten a reduction through an appeal or through our office, they don't need to apply again. they will be reviewed. they may want to apply because

maybe they want to give us information we don't know. they are free to do that. that will be reviewed as part of that process. in general, they don't need to submit paperwork if they already got a reduction last year. >> [inaudible] >> well, i think because it is just flat, the market has not rebounded and gone up. we will probably see the same number of people deserve reductions last year. i think it will be comparable. traditionally, an economic recovery is like a v. this is more like a u. we're at the bottom of it right now. my feeling is we are going to see, you know, a very unusual

real-estate market in san francisco. it will be flat and not appreciate a whole lot right now. the number people who are eligible is probably similar to last year. i bet we will give about the same number of reductions this year as we did last year. it will not be that much different. >> [inaudible] >> anybody that was reviewed -- everybody in san francisco got a letter from us in july. they were told what their assessed value was. there were told that they got a reduction. if they got a reduction based on the letter, they don't need to reapply. what people do is we will review applicants. the deadline is march 31. all 17,000 who got reductions will be reviewed automatically. everyone will get notified again in july. we will not talk to anybody prior to that. everyone else will be getting the standard notification in july. >> [inaudible]

you review these every year. >> every year. the reductions we review every year. as the market appreciates, we may take their assessments up based on what the market value is. they may go all the way back up to the factor value. it may go up partially higher. obviously, that is what he would see. you would see a step over the years to include the appreciation based on what the market is feeling. right now, we are not seeing a whole lot of appreciation. chances are, the assessment will be a little bit different than last year. the original purchase applies plus whatever the inflation factor was on an annual basis. in general, up to 2%. we had a negative inflation factor for the first time last year. everybody got a reduction last year. >> [inaudible]

>> this year, cpi based on the final number we saw, is. 5% positive. it is still well below 2%. -- is .5% positive. it is still well below 2%. the economy is still rather flat. >> [inaudible] >> everybody who does not get a reduction will get a .5% increase in their assessment. that is just a proximate. it will probably be pretty close to that. we can show you the website. we follow the same website. it is the state cpi. it is a tracking mechanism for the state. >> [inaudible]

>> i think there will vote to finalize in the next month or two. i think the number is done. >> overall, when all is said and done, what is the amount that you're going to receive [inaudible] >> for reductions, it will really just depend on how much your property might have depreciated or appreciate id. some areas where maybe there was a 5% or 3%, the good news in san francisco, we have not seen a few drops we saw in other parts of the bay area, like solano, or properties dropped 50%. you don't want that. you want your property to appreciate. that is the goal. it might be $50, $1ma