serve the city for many years and they have certain expectations. we as staff want to do as much is possible for them. >> director bridges: -- >> we will be collateralizing the down payment assistance with transfer proceeds from mta funds that otherwise would be in the standard bank account. the level of funding that the credit union will retain will be just the amount of collateral. it will be remitting funds back to the sfmta. the interest will come back to

us. otherwise we would be earning interest through the regular city treasury. >> director bridges: you know the rate structure? >> the credit union is here. they can answer. >> director bridges: that is my question. i appreciate that. >> chairman nolan: will the credit union come forward. >> good afternoon. >> i am rebecca -- with the san francisco federal credit union. >> director bridges: my question was -- the money transferred back to the mta funds. the fun sitting in the credit union, what type of rate structure?

>> it will be against their five year cnt, with 75-100 basis points in addition to the rate. we wanted a good market right. >> director bridges: a good market right, that's correct. thank very much. >> chairman nolan: -- >> can i get clarification on this balloon payment due in five years? >> the example we gave to chris, one choice, a borrower could have, the five-year loan. we want to keep the payment as low as possible. we want to make the term as long as possible. a five-year 30 is fixed for 5 years; at the end the balance is refinanced until paid in full. it could take that to the full 30 years. there is no prepayment penalty.

they can make higher payments anytime and pay the loan down, which is what we have seen over the pilot program. it is a way to bring the loan program for the borrower to keep the payment as low as possible to fit their particular budget. we have programs that range from a three-year fixed program, a lot of people take a 10 year, 12 year program. it's really what the person is most comfortable with that fits within the particular financial circumstances. we try to make as many programs available. we created the 5/30, when the medallion price went up, to keep the loan payment as low as possible to the person borrowing. >> chairman nolan: -- >> i want to clarify a few things and speak to something that carl -- said. important that the drivers that we do value, some people are

suspicious when i say that, but i think it you will realize that when you understand this program better. these are questions for director hyoshi and director reisking. first of all, an important point, 150 qualified applicants. if it stays at 150, how deeply get on the list with folks getting this benefit? >> for 3 applications, 2 will qualify. my math -- >> it sort of a 2-3 ratio. so with 150, we'll get to 225 on the list.

let's talk in tangible terms. there are people who have put their lives in its industry. it is important that we have clarity in tangible terms. the current proposal would generate this benefit to the 225 waiting spot on the list. number two, i want to speak to a comment specifically from bill -- someone but i've known for a long time. i suspect he's not through with my ideas, but i hope he knows that i respect him. he said you cannot get a loan, because if they borrow 150,000 that would not get that loan but we are in a different situation. they are getting this loan free. if someone got the loan, the credit union will give it to them for no down payment. there is no reason to believe that any of these 225 people on

the waiting liswould be unable to secure a loan for this medallion. we have seen no one turned down for a long. >> correct. >> is important to clarify -- and i want to make sure everyone understands it, the debt service, loan payments, mortgage payments, whatever you want to call it, under this proposal is going to be roughly according to your proposal $800 a month. >> $800-$850, yes. >> the difference between what someone would get it we're

stuck with the prop system, the difference between the month revenue stream to one of our long-term value drivers from this sort of the medallion, is about -- a month, because they have to pay the loan service. but the same time, unlike prop k because people drove onto the drop because they don't have any ownership in the medallion, people in this medallion do own it. >> people think the pension is being taken away. i want to correct that perception. the system creates a way for the driver to transfer the medallion and realized the asset value. >> thank you for addressing

that point. i feel a bit of kindred spirit with you today, suffering personal attacks. this is a program that was is explained like that shows that you as a staff showing respect the people will have a long time in industry. while it is tempting at some levels of the mta to reach out and take all this money we have sacrificed determine some of the revenue to create a transition program. and i appreciate your comments. those are my questions. >> chairman nolan: director rubke. >> chairman nolan: i would like to make an amendment, item 11.

>> director rubke: i would like to to make in a amendment to item 11. >> chairman nolan: second of the motion? >> if director rubke's amendment is passed, we'll get to 300 on the waiting list. >> correct. >> chairman nolan: all those in favor? passed, 11 as amended. i would like very much to see that the revenue generated, in fact is back to this industry in a direct, definable way, such as inspectors. that is an important issue. safety is an important issue. i don't know that four more will do it.

i would like to see the drivers fund get substantial increase especially like funds like ms. hyoshi was talking about. >> do we have a motion and a second? >> we do. >> on 11 as amended and on 12. >> chairman nolan: all those in favor? it is so ordered. we will take about a 10 minute break. (break) >> chairman nolan: we are back. good afternoon. we are back in session. will go at this point to the agenda.

back the public comment. we have members of the public who wish to address the board? >> secretary boomer: yes, on matters within the jurisdiction of the board of directors but not on the agenda. >> chairman nolan: two minutes. >> secretary boomer: [indiscernible] >> chairman nolan: mr. malik? [sounds like] >> good afternoon. honorable chairman and directors. -- malik, longtime driver. not on the agenda. mr. chairman, a few months ago you requested or ordered the sfmta to bring up credit card issue again.

a lot of companies are charging five percent or more. forcing the drivers to accept credit card via merchant, we pay the license fee to the city. we are independent contractors. i do now you can forces to accept credit card even though the people go to the clubs and bars. ethey don't accept credit cards. they have to pay cash. the minimum is $21 dollars. if you go to the bar and order $6-$10, you have to pay $21, and if you want another drink, you pay another $21. the same people, for $7 ride, they gave you credit card.

and some people force you to accept credit card. which is very unfair. if you look at the federal law, -- you have to take a position, accept the law or not. allows the charge the minimum of 10 dollars, or allow us to have a signposted, only cash. is up to us. we lose the business. you don't. in the people don't have a credit card, we lose the business. >> marcelo fonseca, followed by --[indiscernible] . >> good afternoon sir. >> good afternoon i want to talk again on the -- illegal operation that ms. hyoshi talk

about. she talk about a lot of things i want to say. i want to urge you to go after them. they are big threat to our industry. if i listen to you mr. [indiscernible] i don't think you can look the other way. they are threatened this industry. if you don't do anything about it, this medallion treasure could become worthless. they are a major threat to the industry. they are everywhere. they do as they please. it is not fair that we have so many rules and regulations to comply with and they roam the streets as they please. please keep the pressure on them. and to the best you can so we can survive in this industry. thank you. >> chairman nolan: speaker please.

>> -- [indiscernible] >> at the last meeting, item 11.7, approved by the board, unilateral action to close [indiscernible] i was disappointed because it was based on false information. mr. heinicke, when he moved to approve this he said i understand the contractor at the full set of recourse available to him if he wants to pursue additional compensation. there is no full set of resources. there is one. the filing of a lawsuit. i have been working on three projects: i am owed for money

and work completed, some in 2010, and i'll tell you how much. this is not like information brought to you. this is accurate, verified by sfmta staff. i am old owed-- 7 million dollars right now. the only recourse is available is to file a lawsuit and that will cost me several hundred thousand dollars and that will cost me money through my notes. i want the board to put themselves in my shoe. modern i give you my business cards and tell me what those recourses are? a small contractor paying 3.7 interest rate on --

and the only recourse is to file a lawsuit. to me what the recourse is. >> chairman nolan: next speaker. good afternoon. >> thank you for your few minutes of your time. i'm here to protest the unilateral change order 20 a contract 50; i work for synergy project management for over seven years, and the acting director of construction. we have completed over 40 s.f. projects, never have to file a claim in an owner until now. we have voluntarily gone out of our way to perform a -- contract, 70 percent ahead of the schedule. after that director reiskin pointed out how sensitive it was for the industry. i have never seen management

abuse powers as i've seen on 1250. this forum does not allow the time to review the details; i asked the board to make the decision to act parties to present the case to a neutral party for decision. we want to clarify that the only recourse is a lawsuit; we have already spent 250,000 dollars on attorney consultant these; we would hate to spend another 200,000. synergy is performing other contracts with sfmta, and his partner with sfmta to deliver context of the community; i

asked that you request reasonable mediation in this issue. >> i am the actual superintendent that built the first two phases of the subway project; i have been present every day. i want to talk to you about the unpaid inefficiency and disruption on the 1250 project; there were over 750 separate force changes. every time we would start to dig, some unforeseen structure would block our work, we found even an entire building foundation on 4 street, buried,

combine this with a six-month archaeological delays and we have major additional costs of this project that have not been addressed. all of the starting and stopping, can be chopped into little sections. the fragmentation that we experience of the base contract work had synergy on this one disruption item over the entire course. the job has been 2 million additional labor and equipment; we put together a simple change order, to make it is easy to understand for sfmta. we compared it to the as-bid hours.

mta has never taken the time to analyze, negotiator comment on the change order. it is not fair or right that management is doing that. you cannot start and stop a job over 750 times and expect workers to finish the same contract work in the same amount of time. synergy has asked over and over for an independent review of the cost and some type of resolution to be set up or third-party evaluation. >> cory lamb - followed by herbert weiner and -- [indiscernible] >> good afternoon chairman nolan. my name is corey -- i am a cab driver. last time we had an important monday night football game. i work those games and special

events; that's how we make money on the slow monday night; it is frustrating. about five towne cars, a few taxis. we get in on -- a big line of buses. [indiscernible] we sat there in gridlock -- you have probably 400-500 people after again did want to go home. we were instructed to not pick up anyone on the line or you will get a ticket. i had to tell a few drunk people now. if you like to go into a combat

situation to service the public. we want to figure this out. either sfpd or everyone involved, it will not have black towne cars using that road, have to have other access. we have buses with people holding on. they stand. at the cab driver, it is frustrating. >> herbert weiner. why does muni have such a crime

rate? because it gets away with murder. [indiscernible] requires physically disabled people to walk quarter of a mile. they ignore the obvious. more buses, more drivers. they propose extravagant solutions. mta is a bully agency the tax taxidrivers, parking meters in the physically frail. if muni passengers a lucky those taking the bus today are lucky if they are home by christmas. i had to acquaint this board with muni etiquette. when you say to someone i will see you in hell, it means i will see you in a muni bus.

>> chairman nolan: next speaker plesae. >> commissioners thank you for letting me speak again. of the record i'm emile lawrence [sounds like]. i want to see what we see the mta is missing by a long mile. technology is superseding your medallions. if you look at the industry in london, they have to separate systems. they have -- taxis and taxes that pick up people on the street which are black cabs. taxis by telephone operate

without any license. people can drive their own car or limousine by filing apps by people like hoover -- what i see is a collapse of your medallion prices coming up in the horizon, defaults from drivers, etc. the industry technologically is the preceding your ability to cope with it. i bring that to your attention because over the past six years or so, on the only taxi driver on the super service directory and i was kicked off for [indiscernible] because he did not like my personality or vocal ability all what i had to say about him or the administration.

i bring it to your attention that you're basically phasing out the whole cabin the street right now with these medallions because it would not need them in five years; they don't need that now to make money. >> chairman nolan: next speaker please. >> good afternoon directors. i want to point out that chris hyoshi is back full-time in her job. the e-mails coming in, better notification of meetings. it would be great if paul rhodes, because he sent public notifications of meetings. [indiscernible] maybe even a front-page announcement was in a while. we did once. thank you mr. reiskin, but it

is not happening on a regular basis. so it is great that she has returned. the problem is, her staff is not attending meetings regarding taxi issues which also relates to passenger service. i want to relate to corey lamb, jarvis is not returning phone calls, answering the phone, e-mail. i work with him regarding the issue of service of major events, particularly 49er games. the supposed higher extra security police to help deal with the illegal operations but it is not happening. let the whole thing go. he won't answer his phone.

this has to do with legal pickups of the ballpark. i had talk mr. murray about hiring these extra people. it is almost the end of november. they are not hired yet. wtf. why are you taking the time dealing with it? promises and promises. you should the man at the next meeting to get a report. thank you. >> chairman nolan: next speaker. >> jean clark. peter webb. tarik mahmoud [sounds like]