we can be collaborative and supporting agency wide collaborative. given their incredible hard work and talent, i am very proud of this team. thank you. and steve wanted to mention a couple of comments, too. quickscat afternoon. steve, manager of sf park. director, others, as you can see, this is really an sf mta effort with regard to the various things, and with your permission, i would like to mention some additional names that i believe these contractors in turns are definitely a part of the team and are no less deserving of recognition. tony, lauren, alex, lisa, jamey,

joseph, hank, cindy, randy, sunjay, sai, sorry, guys, lisa, michael, adam, eric, kevin, and steve. some of these folks are in the room today sorry. surry. definitely everyone played a part in the. with that everyone's contribution, i do not think we would be standing here today. >> thank you. president nolan: it has gotten so much attention, international

attention, so thank you. director brinkman: i attended an event, and congratulations to all of you. it is an amazing program. i thought i knew a lot going in, and i learned a lot and the two days, and it was fascinating to see the others there, as he said, waiting to learn from us and to see what goes on in san francisco, so i want to say thank you. you have a fabulous team. i look forward to supporting the rollout of sf park, because i think if it is a game changer. parking is an incredibly emotional topic, but the way you present it took the emotion out of it and really made it a dated

driven process an idea. that was fascinating, and it will be really interesting to see where it goes. president nolan: director vice chair lee? vice chair lee: you pull up, and you say, "wait a minute. it takes a credit card." that is amazing. director: i throw around the term parking a lot. we need to look at how we are doing parking, and part of the reasons i can do that is because i know we have got all of you to back us up, and whatever is going to, will come out better than we already have. we get packets and some of the materials that we had to look for every meeting and read through and read up on.

there is a lot of stuff that comes our way, but one of the things that have been falling out of the chair was the incredible data that you guys generate, and the smart way you're able to implement these adjustments and everything else. thank you so much. you are already being an inspiration to push harder on what the resources present, but i also know for a fact that some of the city's i am working with are creating models. keep up the great work, and once again, thanks so much. president nolan: thank you all, very much. >> it was great in new york to acknowledge and admit that they were going to be falling, basically, being, what we're doing here in san francisco and starting a pilot in new york. i think we feel sometimes a bit

of a rivalry with new york city, and the folks to have more parking and everything than anyone quietly say they were going to follow the lead of san francisco, it was a good moment. sir just a few brief things to update you on. we did have some in our original schedule that we reported to you that we were looking for some work this weekend, some issues with fabrication. that work is going to be pushed off probably until early in the next year. we will do all of the phone noticing. it will not impact our overall schedule. we are still on schedule. i want to acknowledge that the week that was done a few weeks ago on the whole went well. it went well as planned. the diversion and the

information all generally went pretty well. we did subsequent to that have an issue where we had a two car and train that had a switch move as the train was passing over it. it said some wheels onto a different track. we have been working with mr. haley and his crew in particular around the clock with very minimal service disruptions since that night to make sure that the system is safe, and we have actually gotten some improvements in the conditions out there as a result of this, and we will continue to work in conjunction with the project to make sure that gets the attention that it needs, a very critical intersection in our system. the balboa park station, the pedestrian and bicycle and prevents is moving forward. that work should be done, as i

reported to you, it should be done more or less this week. anyone who has been down there can see it was pretty significant work. we're putting in a crosswalk, but that work is generally progressing well. also, in terms of service enhancements, the transit folks have been focusing on one of our busiest lines this month, 14 and 14 l, so we are doing what was reported previously, at least in committee, talking to drivers, other stakeholders to identify possible improvements. one of the kind of most exciting things to come out of that will be extending the 14 l. mr. haley will be bringing a report to the policy and

government committee. they wanted you to know after focusing on the 28 and 29, we are moving up to the 14, with one and exciting announcement, a connection to bart. the jfk by claims have gone through a lot of work between us, recreation and parks, dpw, and they have gone up through the recreation and parks commission. and the impact they might have on people in the disability community. we are working through those issues with those folks, with a

large internal staff meeting this meeting. we will be meeting with some of the folks later this week. there has been a lot of email and traffic flying around. we what you want to know that we are working diligently to address and resolve any outstanding issues and concerns we have, just a point of information, when the voters passed proposition back in 2007, one of the requirements was that me -- we will meet regularly, and we had the first meeting, where we sat down with the union leadership to talk through some of the intent behind the proposition and where we are relative to it. one of the top items was more money coming from the general

fund to the mta, and there's great interest on the part of labor to nowhere is that money going. service improvements relative to staffing, so we had a good discussion about that. they have basically said that they want the mta board to know that these discussions are happening and that they haven't interest in seeing that the spirit and intent and words of the proposition are carried forward, so i just wanted to let you know that we will be continuing those discussions and, again, in keeping with the requirements of prop a. i did want you to know that the mayor had convened a meeting with me and the bike coalition, and the mayor's transportation policy advisor one month or so ago.

that topic, we have since had some discussions, staff level, between our communications folks, the bike folks, the coalition with the police department along the lines of what you're talking about. from my observation, i agree with you on the acuteness of the need, and it is helpful to get that direction and support from the board. we will make sure to accelerate those efforts, and then finally, just a reminder, we have our workshop coming up on november. 14. it will be an all-day workshop starting at the mason center. the main things we will be covering is we will be giving an update on where we are with the strategic plan for the next six years, to get your feedback on that, and that will help guide our budget process, which is another thing. we will give you an update on the preliminary base line for the next two fiscal years, what it looks like, to also get your

direction as to the budget, said that will be november 14 at mason, and that concludes my report. president nolan: thank you. director heinicke? director heinicke: i do not know if you have had the chance to meet that man from rescue muni, but he has a discussion about that project and what he is happy with and what he wishes would also happen. i think there are some things that may be outside the scope of the project, but i realize as you are coming new to this job and learning this community, it might be helpful for us to give you input. i would suggest that mr. sullivan, who is a thoughtful person with whom i have had some thoughtful discussions when i

was coming up to speed about muni work, i would suggest to you that this might be one topic that you could reach out to him as you get to know him, because he and his organization care a great deal. director nolan: anyone else on this? >> secretary -- secretary bopo -- boomer: there are no speaker cards on this. director nolan: a really informative discussion. at some point, on a day like today, when we do not have a lot, to have a report from them. the director of the project is very impressive. i think it is important for us to know all of this because we would certainly be impacted by

this in the years ahead, so with members consent, do you want to say anything about that? >> i think that is a wonderful idea. eventually, the terminus of california high speed rail is really going to change downtown for the better. it has been an amazing project. i think we are aware of it and ready for it. some of the challenges that are still faced by high-speed rail and the downtown extension. there is a good proposal under way to have a shared alignment between caltrain and others. >> -- director nolan: maybe sometime when we are not too busy, if the directors went to hear it. ok, secretary boomer: item

number eight, the citizens' advisory council report, but he is not here. item nine, public comment. director nolan: will give you the first three minutes. good afternoon. >> i wanted to call your attention to what i consider to be a really wrong turn to some proposed legislation that is going to be coming to you i think in early december. a series of amendments that have been on the table for a long time, and recently inserted into them are provisions that would constitute a huge expansion of

the medallion sales pilot program which is coming to kind of a natural conclusion as the number of sellers in the program has dwindled down. to, you know, next to nothing. and you had to be 70 years old or disabled to participate in the program, and that was a provision that was elaborated over i think it was 150 hours of town hall meetings, and numerous, i think it was five or six meetings of this board about aspects of this program. an intense amount of industry input, and now, the direction it is going under this provision would allow 60-year-old

sell their medallions, healthy 60-year-olds who did not purchase medallions. they would be able to go out and sell them, and this is simply the wrong way to go. what is needed now is a permanent program, a definitive program that defines -- because there are competing rights and competing interests here. there are people on the list to have waited 14, 15, 16 years for their medallions and are seeing the doors shut in front of them, and suddenly we are going to open the door wide to what might be another 300 medallion holders? it ain't right. it ain't right. and just to comment on the process that brought this year, this as it -- was a

recommendation of the taxi advisory council. they had a vote. of those votes, five were medallion holders who would directly benefit from this, and two others were taxicab company managers who depend on medallion holders and medallions to run their business, so this was not any kind of a disinterested decision. i support medallion holders who are disabled being able to sell, and i would support a medallion older who was turning 70 in the meantime to be able to sell, but not reducing to 60. director heinicke: next item. secretary boomer: any other members of the public wish to speak? moving on to the consent calendar, previously, 10.1, not

to 10.2, p to s have been severed, and seeing that no member of the public has asked for another to be severed -- president nolan: all in favor, say aye. all opposed? and we want to thank one person for coming. ms. boomer, next item. secretary boomer: can we call item 11 together? ok, item number 11, a discussion of the disclosure in due diligence. >> a set of bonds. this presentation this afternoon is going to be done by sean tierney, who is the council from a firm, and the reason this is

very important is because we have to make a pledge to the bondholders that we are disclosing all of the mta issues in our document so that their bondholders feel comfortable that we're being honest and forthright about our information, so the two gentlemen are going to walk through the legal requirements of this so you are fully aware of the implications of the bond issuance. we will turn that over. who goes first? mr. blake will go first. president nolan: good afternoon. >> i will take a moment here. i have some preliminary comments first. commissioner, chair, the

responsibilities imposed on the federal securities law on officials in connection of the authorization of debt in the capital market. i also want to thank another person for making this happen today. it is timely. i am mark blake, and i am a deputy city attorney. today, we are very pleasant -- pleased to have sean tierney from a law firm here, a national leader in this area. mr. tierney has an expensive -- extensive resume and the gray hairs to share for it and is an expert in the area of securities law. the law firm is also currently serving as disclosure counsel for the city and its principal adviser to the city and its general fund department for securities law questions. our presentation today is in some sense part one of the board

municipal securities disclosures training. this board has indicated will soon consider the issuance of bonds to achieve certain financial objectives for the s.f. mta, and we will review many of the same principles that we discussed today when that matter is taken up. the overview today concerns legal context in which the as 78 will borrow money from the capital markets -- in which the sfmta will borrow money from the capital markets. they are subject to provisions of the security law. when we offer bonds for purchase to investors, we are going to be deemed as speaking to the market. what this means in plain terms is that the city has potential civil and criminal exposure would security laws.

as well, the sfmta risks its reputation capital. of central relevance of us today is your responsibilities as board members in the chain of approval in the official statement. that is the document that will contain all of the materials, financial and operational information, that an investor will rely upon to make an informed investment decision. let me give you a little context. although municipal securities are not directly regulated by the united states securities and exchange commission, the sec does regulate the municipal market indirectly through its regulation of underwriters, broker-dealers, and other participants. it also does this by way of its enforcement action and through public pronouncements. recently, the chair of the sec

and certain of its commissioners have made an improvement to the securities disclosures packet for the court objected. in a july 15, 2009 s speech, the chairman, mary schapiro, stated more needed to be done to put disclosure of securities on par with the disclosure of corporate. i plan to work to request enhanced sec authority with respect to municipal securities disclosures so that investors in munis have the full complement of information they deserve about their investments. her comments were immediately followed by a more pointed speech on october 29 by commissioner walter entitled "regulation of municipal securities markets, investors are not second-class citizens," where she states investors deserve the same level of high

quality disclosure protection in the municipal market as they currently get in the corporate market and should not have to be forced to rely on good faith voluntary disclosure, and as an added benefit, i believe that improved municipal disclosure will give taxpayers a better idea of what their elected representatives are doing with their tax dollars. since then, there has been a steady drumbeat by the sec and others about perceived shortfalls associated with municipal securities disclosure practices. in the recent dodd-frank wall street consumer protection act, included in that legislation was the creation of an office of municipal securities that will report directly to the chair of the sec, and so what this makes clear is that the sec -- that congress is becoming increasingly receptive to increased regulation by the sec

and that more is certain to follow. to that end, staff, the city attorney's office, and outside disclosure council have established a process to assure the representation and the statements and the bishops' statement is accurate and not misleading. fair or not, the fcc reviews the boards as the final and responsible gatekeepers, so with that, we will go to slide one. the following presentation, we will address the applicable securities law. what is the law here? next, we will look at what the board will approve when it authorized the issuance of bonds, and finally, we will provide guidance to the board in terms of discharging, steps you can take to discharge or legal responsibilities -- your legal responsibilities.

we will answer a question you are all going to ask and give you guidelines to get comfortable with that question. sean will not taking to the first part of a presentation which is about the applicable law here. thank you. president nolan: good afternoon, mr. tierney. >> thank you. i will go back to the documentation. a few opening remarks. i think we're going to familiarize you with the applicable laws and documents in the process. i think that maybe one takeaway piece of advice is as government officials, you are familiar with the requirements for transparency in almost every aspect of what you do, so i think in many ways, disclosure is similar to that.

the securities market, investors. i think some of the ultimate advice is probably to encourage you to promote the culture of the disclosure, the disclosure practices. i think as board members, that is my advice. having said that, we are going to died in to the actual law here. the first slide -- ok. we are going to discuss the different contexts in which disclosure issues arise and the laws apply. the standards that apply, and various enforcement actions that need to be taken by the sec and private investors. ok. thank you. interestingly, the sec has no direct jurisdiction over governmental entities in the same sense it does over private

companies. private companies have to file a registration statement with the sec and are subject to detailed regulations that tell them exactly what they are supposed to disclose. in the municipal securities area, the primary lot you are subject to are the antifraud provisions. there is no detailed guidance, but you are still subject to the basic requirement of telling the truth and the whole truth to investors. however, the sec does have jurisdiction over the underwriters, the investment bankers who underwrite your bonds, and they have over the last decade or two exercised more specific control over municipal underwriting and issuance by way of this jurisdiction.