-- [laughter] >> there is a little bit of that etiquette. we'll work on the etiquette. next one is -- >> you need a vote. >> motion and second? >> we did. >> all in favor say aye. opposed? >> number 13, approving the preliminary official statement for the issueance of the series 2012 a and b revenue bonds including the refinancing of outstanding revenue and lease revenue bonds related to certain parking garages and parking meters and providing funds for certain new projects. you do have a member of the public. >> part of the project was a preliminary official statement and we told you we would come

back to you when we were close to selling the bonds. an official statement has been released. and we are in the midst of the validation period and the mayor signed the legislation. so we will be -- 60-day clock starts ticking april 18 and we expect to issue bonds in june or july. we will give you an update in the changes of the preliminary official statement. >> good afternoon. i'm here in san francisco and we have been serving as your disclosure counsel in connection with this offering of revenue bonds. as disclosure counsel we have been working closely with your staff in terms of putting together the preliminary

official statement for the bonds. the preliminary official statement for the bonds, it's like the prospect us in a registered public securities offering that its purpose is to provide investors what they need to know to make an informed investment decision with respect to the securities, with respect to whether to buy your bonds or not. the preliminary official statement has information on the agency, the agency's operations and financial condition, the terms of the bonds, security for the bonds, tax status and interest on the bonds and other information that's of interest to investors. federal securities law requires that the preliminary official statement contain all of the

information that an investor would want to have or need to have to make an informed investment decision and not contain any material misstatements or omissions. so that involved -- that involves a process of working with the staff. it's a process of investigation to make sure that the agency's story, and particularly the agency's story as it's told to investors and the financial community is complete and accurate. i'm very pleased to report that your staff has worked very diligently and very hard to provide the information and to work with us and the rest of the financing team and putting together the preliminary official statement.

the preliminary official statement is now substantially complete. as the agency story is always an ongoing story and there are always new things to keep up with. there are some items that will be needed to be updated, but it's substantially complete and ready for your approval. also, pleased to report that as your disclosure counsel we really have no concerns with respect to either the content of the document before you or the process or the work done by your staff. i will -- so, so, again, the changes since this has been before you have been further development, refinement of the story and updating to reflect

things that have happened in the last few months. as your counsel, i must advise you that under the federal securities law that you as directors, are responsible for the agency's compliance with federal securities laws and with the adequacy of the disclosures you make. and to that end, i would -- we would encourage you and advise you to speak with staff, to speak with the city attorney if you have any concern that the information in the in the preliminary official statement doesn't fully and fairly present the agency's financial position or if you have any concern that some of the information in it is either incorrect, incomplete or potentially misleading.

in that, we particularly encourage you to focus on things, matters that you as commissioners may know that the staff may not know. so with that, i will be happy to entertain questions on the documents, on the process, our responsibilities. >> i do have a few questions on the process and as members of this board considering the vital role we all have in this, review some of these things, like in preparing your review, did you review all these statements and everything that was necessary, all the documents? were they all made available? >> yes. the general process is from a

working group standpoint is the working group based on our sort of collective experience working in the municipal area and working with -- working with transportation agencies and transportation credits in particular is to determine what sort -- what types of information investors need to know. from that -- so that's a -- it's your story, the story aimed at a particular audience and that needs to be consistent with what you're saying about the agency and its operations to other audiences. but it's a story that is tailored to particular investors. so the process is to start from that collective experience and our experience looking at that

issueance from other agencies. we would review public reports and public information that you have made available. we have -- we review the minutes of these meetings. we have asked to see and asked for review of a great number of documentation to basically do due diligence and do the investigation behind the story. >> you have gotten everything you have asked for? >> yes. we have no concerns with that. >> i assume this involves talking to staff and various officials about what goes in there? >> yes. >> people been cooperative with you? >> the staff has been very helpful and very cooperative. >> do you see any outstanding

issues remaining that we need to be aware of as we go into this? >> i'm not aware of any -- we're not aware if there are any material issues that haven't been fully and adequately addressed. i will say that the bond sail is -- bond sale is still a little bit away and we have to stay on top of developments. and again, we very much encourage you to participate in this process not only to read the document and bring to staff attention a particular matter, any concerns, but also to give some thought from your perspective as to whether the presentation that's being made to investors, that it captures

what ought to be said needs to be said. >> do you think the document as it stands before us is still a work in progress? >> it is substantially final. and yeah. it is substantially final. the om caveat i would have -- the only caveat i would have is as things change. >> members of the board? questions, comments? >> we have had a review by the controller's office as well and to make sure that everything we say is consistent and accurate as well. another set of eyes that have reviewed this. >> this is kind of new territory for us and it's a very big deal and first chance we ever had to do this and make sure -- >> just a couple of other observations. the controller's office and the city attorney's office have been

very helpful and supportive in the process. and also i had mentioned as part of the process is you look at disclosure documents and the stories told by other agencies. since this is the first sort of securities offering done on general revenue credit, it -- we had to start the thinking really from a clean slate and think things through from the bottom up. this wasn't -- sometimes these are processes of looking at the story told before and updating it. here you have not had an occasion or opportunity to tell this story to this audience. so it's been a huge effort. on the part of the financing team in germ and on the part of

your staff in particular and would like to thank the staff for their hard work. >> i appreciate it. >> i will repeat what i have said earlier, we have had the revenue bonds issue before us presented in various ways and we have been to the board of supervisors and acknowledge that we are relativey unique in transit agencies that we have a revenue stream that we actually can offer our own bonds instead of having general revenue bonds from the city. how unique are we in the u.s.? are there other agencies and i'm sure we have gone over this before, but more for educational purposes to anybody who is new to this and hasn't been listening. >> we are probably one of the few who don't. they have sales tax and other streams of revenues. bart has issued.

v.t.a. we are probably the last remaining system, new york all issue debt. >> what is you feek, we have a more diversified set of revenue streams. and in that way, we have a good story to tell because we are both a transit agency and city transportation department, which is unique in the country. we have this will broader range of revenue streams to be able to pledge that many agencies have, they have their fares and one dedicated range. >> we'll know how strong we will be at the end of the month because we are going for our ratings and get the value of the diverseity in our ratings. >> there is sometimes a knee-jerk reaction against issuing debt without the

realization that it is a good way to finance and manage the money that you have available to you. so thank you. >> is there a motion to approve. >> you have a member of the public who would like to address you on this matter. >> i would have said earlier on 10.4 we were assured that no operating budget funds would go into the central subway project, but i assume you approved 10.4 earlier. as to the preliminary official statement, i continue to support the garage work supported by parking revenues and oppose the transit work which should be prioritized over other capital projects. including the capital work will result in less service and/or higher fares in the future. i would approve the garage work and disapprove the transit work. i hope the official statement

will properly disclose the operating and capital budget risks going forward, including the opposition to the central subway project. >> anybody else? >> mr. lee. >> thank you so much. i'm a taxi driver. when i look at this, you are going to offer a lot of bonds and raise a lot of money, that's fine, but remember one story that you put the t-line at the first street. it's not functioning. you are losing $650 million. not that many people take it. basically, i agree with you borrow the money today and use it today and next year will be inflation even if you pay 3%, 4%, whatever it is.

stran is a good credit city. we have a lot of customers coming. we do need the money to operate our system. but before you are doing this offering a lot of bonds and everything, very carefully using your money. i'm asian and chinese and came here with very little money. i very carefully use my money. i hope this is good money for you to raise it and you can use it very carefully for the interest of the whole city. and because today, we are in a lot of debt. everybody on the debt. it's too much debt. big companies are making money because they are us using this and they are borrowing money and raising money. i always think i would use t-line before.

i said only build it only and not the railroad system. takes too much time. you have to count which area you raise money and money is very important. thank you. >> anybody else? is there a motion on this one? >> i would like to move. >> i'll second. >> any further discussion? all in favor say aye. thoped? >> vote to whether to conduct a close session. >> is there a motion? >> motion. >> all those in favor say aye. >> it will take me a mo >> all right. announcement of closed session.

they took no action, directors, it would be appropriate to disclose or not disclose. >> not to disclose. >> meeting is adjourned.

>> sanrio famous for the designs for hello kitty. i thought i would try to make it as cute as possible. that way people might want to read the stories. then people might be open to learn about the deities and the culture. ♪ they reached out to make about five or six years ago because of the book published. they appreciated that my work was clearly driven from my research and investigation. after i contributed my artwork, the museum was really beside themselves. they really took to it. the museum reached out to me to see if i would be interested in my own space inside the museum.

i tell them that would be a dream come true. it is the classical, beautiful indian mythology through the lens of modern design and illustration and storytelling. they're all of these great sketch as i did for the maharajah exhibition. i get a lot of feedback on my artwork and books. they complement. they say how original the work is. i am the first person to say that this is so derived from all of this great artwork and storytelling of the past. the research i put into all of my books and work is a product of how we do things that a-- at pixar. sometimes you will see him depicted monkey-like or as

superman. i wanted to honor his monkey coloring. i decided to paint him white with a darker face. it is nice to breathe new life into it in a way that is reverent and honors the past but also lets them breathe and have fun. it is almost a european notion to bring these symbols and icons from southeast asia. they decorate their deities. it was a god they interacted with every day in a human way. the most important thing has been to create work that is appealing to me. i want to see vishnu to pick did in a modern way.

it dawned on me by reinterpreting the deities in a way that is modern and reverent to the history, i am building a bridge for young and old audiences to make friends with the culture and these icons to learn their stories. ♪