street project we have allocation of $2 million for that project in the impact fee revenue down the line. just to make the point that impact fees are not the only funding source for eastern neighborhoods. we have been going out to getting a number of grants for the eastern neighborhood. many came out of the district streetscape plan and others come from other local and state funding sources. and finally these are projects that are moving forward that we expect program funds that are non-impact fee revenue funds but at the same time meet the goal of implementing the eastern neighborhood projects and they come from a -- variety of funding sources, outside grants and streetscape funding and street bonds.

lastly i'm going to talk about other projects on how we identify and move projects forward. we work closely with cac. they meet monthly and basically advise the city on expenditures andal -- allocations of impact fee revenues and working with other agencies and cac to impact these revenues towards the representation that we see the board. we are finishing up this year's report and bringing it to the board in january, i believe. this you for your time. i believe that keith goldstein from eastern neighborhood is here to say a few words at this point. >> great. thank you so much. keith, adam, why don't you come up and present to us briefly on what the cac's role is.

>> good morning, supervisors. as you know the cac is ground zero for development in san francisco and developing presentations and i have lost track of the number of developers and architects who have come to our meetings and told us their grandmother was born in a little house and they would like nothing more than hanging out over a cup of coffee at foaleys. this is for funding and implementing infrastructure improvement and we believe the eastern neighborhoods that receive this attention. we have seen so many

projects come from this area. the neighborhoods and new open space along the center water front. 16 street, folsom street and 22nd street and the eastern neighborhood cac has approved some agreements which appear to be beneficial to the whole community. however we are very concerned about this large gap in funding for infrastructure improvement to accommodate the huge growth. revenues maybe as much as $160 million that is far short of the $250-395 that is included nd needs assessment as muchs $180 million and we have no plans on fixes that

funding gap. now the eac is concerned about the funding for support for transportation. support for shuttle services and better transit is most welcome. we want $20 million of impact fees goes towards the project. maybe it will address our neighborhoods to list affordable housing, green space, park improvement, child care and streetscape and pedestrian and bike improvement. the cac does keep traffic of the funding mechanism the city is considering. we welcome the opportunity to suggest new funding mechanisms. whatever happened to ifd, i thought income hill was going to be for what might occurring in the

eastern neighborhoods. how about tiffs and how about the using the revenue for the infrastructure. what about community development directs. we urge the city to use the increased revenues for this development lot directly for public benefit needs in the eastern neighborhoods. thank you. >> great questions you raise. thank you. we'll get some answered today. next we'll have monique yamamoto to discuss the funding strategies and she'll be focusing on the transportation task force which has laid out the overall transportation strategy for the city. hi monique? >> good morning and members of the board of supervisors committee. the mayor's task force that i think you have heard of preliminary set of recommendations and findings of the mayor's task force. but i'm here this morning to speak to you about how some of those recommendations could apply to

the eastern neighborhood hearing. as you know, the task force is concentrating on infrastructure and not operating expenses nor is it looking at parks and other kinds of concerns within this particular hearing. the task force has been examining the needs for capital programming across the city in light of the kinds of conditions our transportation system is in now as well as the new growth, both in terms of residents and jobs in the city. and so the scope of the task force work does not address the operating deficits nor does it solve all of the problems that have been identified. about $10 billion have been identified as a need

for transportation. and this leaves a gap of 6.3 billion. the task force identified what we believe is required in terms of infrastructure and we'll be proposed some new revenue sources to fund a portion of that gap. so the three recommendations that will be brought forward from the task force is to invest in programs with the greatest impact to first maintain the current transportation system which we found in great disrepair and enhance the system and sfand -- expand the city system to meet new growth and also set to pursue three new revenue

services combined to address that significant portion of that gap and as well as to continue to support and seek additional state and federal funding sources to support policies that will bring in more transportation dollars into san francisco. so, after taking a look at the needs, the task force looked it is needs to repair the core system, to enhance and expand it and is recommending more of the half of the funds be allocated towards core. the reason is we found that the vehicles are in disrepair, the facilities to maintain those vehicles need to be repaired and replaced the rails and overhead fixtures as well as all the signals are also outdated and need to be replaced and if the city attempts to add to the current

transportation system on an infrastructure that is so weak, well not be able to successfully provide the kind of reliable and safe transportation system that the riders expect and deserve. so the investment plans looks and streets and the fleet and add the network enhancements already under way, biking and streets improvement and complete and safe streets as well as providing some funding to our regional partners, cal trans and bart. the streets and signals improvement would benefit the eastern neighborhoods as it would on a citywide basis and

this would greatly improve the pedestrian right of ways and experience as well as bicycle and of course public transit the rehabilitation of the vehicle fleet also would enhance the eastern neighborhood requirements because the plan over the next 15 years together with the mtc lot allotment would rehabilitate in the kind of schedule stated as good repair and replace some of the smaller vehicles with larger ones. rapid network enhancements are focused in the market street as well as gary blvd and funding the transit effectiveness

project improvements mentioned already here for a portion of the eastern neighborhoods. bicycle and pedestrian safety improvements as well is on citywide and many of those improvements are in the neighborhoods and accessibility similarly. a safe and complete street is a great example in some of the newest neighborhoods in san francisco where street trees and more room for pedestrians and bicycles have greatly enhanced the neighborhoods and are very well received by both the residents and the bicycle and pedestrians. and then cal train and bart enhancements coming into downtown areas would also favorably impact the

eastern neighborhoods. this is a chart, i don't know whether people can see it. these are the priority development area neighborhood investments so that includes eastern neighborhoods could apply for these funds and will be programmed in. a note on the transportation task force work, we identified buckets of investments if you will, categories and then it will be up to the city's system capital planning, the mta, public works to see how much funding. about 87 percent of the funds in the investment plans is dedicated to citywide and neighborhood improvements. 46 percent of investment plan is dedicated to enhancing and expanding the current system and many of these projects for the eastern neighborhood plan would fall into these two categories. and

then finally projects that would benefit the eastern neighborhoods includes complete streets and street paving which are street paving in particularly is funded in it's entirety almost to provide a good transportation index. new potential revenues is important to the task force as is as well to the eastern plan to provide resources. this transportation project is foremost. we also believe the money if we are able to raise it for this plan will attract other funding sources, will be seed money or local matches for additional funds. so, in order to make a big dent in the needs and to fund them, the task force is recommending three new revenue

sources, two $500 million in revenue bonds in a year and year after dedicated to improvements. and second vehicle license fee which has been set at 2 persona number of decades and early 2000s to 2.#6 5 and increased the vlf to its full 2 percent cap in reservation for the task force and a couple years later proposing a sales tax dedicated to city improvement. this is the projected plan for the next 15 years. what's happening next year?

>> that's going to depend on the board of supervisors to develop the time to do so. >> your recommendation for new revenue is so far in the future. my question is at least, last year, 5 years ago when we were going through planning did you identify revenue sources that are being utilized today. i'm looking for something more in the short-term. >> as part of the transportation task force work we did look at the existing funds that are available towards transportation and to improve the infrastructure. there are federal grants. some state grants. there is money that comes from the metropolitan transportation commission and there is a general fund subsidy to about $4 hundred million and there is a capital plan within the city

that prior advertises some -- prior advertises some of the fund money. >> i heard from you and others and adam about potential future funding sources, but i think what i'm looking to hear and probably many members in the audience are specifics. you say federal grants. what are specifics, do we have applications pending at this time, have we identified these sources, or is it a big, hey, we are looking for federal grants. what was the focus? >> the mta does receive on going federal grants to do vehicle replacements. paving is a local responsibility. so a lot of the better street work needs to be funded locally. as you know the impact development fees is the beginning of the

pool of funding available for eastern neighborhoods. and this is one of the reasons that the mayor asked the transportation task force to tase a look at what other options are available above and beyond what's already been identified because clearly there is not enough money to meet the needs of both the eastern neighborhoods and the other growth areas as well as the basic system. >> okay. i think we've got someone who is going to chime in here. >> monique is talking about the future and i will talk about the past. i'm john brewer with mta. the question you are asking is 5 years ago is what our plans and what sources we looked at and how we executed on that plan 5 years ago. i think adam got to some of that to each extent. each area develops and certain amount of impact fees which is what we

did with the mta and other transit improvement and the others of the sales tax which supports many projects and you as towards the board enforce those dollars in the eastern neighborhood and planning and design are sources that we use to move those types of projects forward. there is the o bad grants that are released throughout the city. we are recently making improvements in that area and traffic and safety and bicycle improvements. there are funds and federal funds that will apply to this area that we are looking at now. we'll look at other grants such as highway improvement grants as it becomes necessary on data we get throughout the city, there

is numerous grants that we are looking to constantly close the gap as you have noted with the eastern planning area. we use the impact fees to leverage those grants and make it more competitive for those sources and we continue to do that is an example as well as other projects. 16th street where we are going to use development impact fees currently with what we have not enough to fully fund the project but to get the design started, start the community outreach work and figure out what transit improvements are necessary. the grants i talked about as projections for the future as they become available we are first in line to take those. that's the strategic plan. 5 years ago we looked at what we had. as monique noted and the work is how do we try to fill that gap. one example also is a proposition b street bond that was passed in 2011 and road

repaving to get into that infrastructure. things have been done. acknowledge it's not enough, we know that. the assessment and transportation task force report has gotten to that. so there has been a plan, we have been executing on it. and i'm happy to answer any other questions on more specific sources. >> okay. stick around. we may have more questions for you. thank you, monique. yukon with your presentation. >> i just want to point out the transportation commission really responds to the mayor's task force work is proposing $7.4 billion in a charge grant. >> supervisor campos? >> thank you, i happen to serve on the atc and what process will be followed remains to be seen. it's not clear how quickly or not so quickly this

process will go through. i do have some concerns about the transportation task force's recommendation and as it currently stands there is going to be some difficulty in getting a lot of people in some communities to get behind the proposal and i actually think it's going to create some issues in terms of our ability to get some fundings because of that. i hope that there is an effort to understand that many people do feel left out of this process and that the proposal to the extent that it relies on things like sales tax which can be' very regressive tool doesn't necessarily address a lot of the concerns that many of these communities have. so i hope that we get to a point where there is actually a united front as a city. i don't think we are there just yet.

and so, i don't know that this is the focus of the hearing today, but i want to point that out there because i think we have still some ways to go. >> thank you, supervisor. and in conclusion then, the next steps in light of what supervisor campos said the members of the task force are working with stake holders and a number of equity that has come up. the task force is aware of the requirements in those areas, federal grants are awarded based on an analysis of equity. the recommendations in the investment plans that have been made within the task force are consistent with those

proposed by the mta and transportation authority staff but it does not mean that our work is over or the city's work is over. the next steps is to present the updated plan to the task force and to the mayor's, and to the board of supervisors and the mta and the other departments. there will be additional hearings with that as well as in the capital planning process that will begin with respect to transportation. the task force will continue to communicate the goals and the recommendations and to revise the investment plan as needed as these steps are taken. again, the task force hasn't defined exactly which projects there is a proposal for a number of improvement that the eastern neighborhoods would fit

into, and that we do expect that this money if it is raised through the charter changes in terms of the geo bond as well as the additional fees and taxes would make money available to both citywide as well as eastern neighborhoods. >> i have a question for you. could you tell me which projects are identified in the eastern neighborhood plan that have been included in the capital plan? >> in the capital plan, i would ask that of brian strong or someone from the planning department. >> okay i will let you finish your presentation and we'll come back to brian for that answer. >> i have concluded unless you have questions about the process or what's in the investment plan. >> could you talk a little bit more about why you are not in favor of isd?

>> it's not that the controllers office is not in favor, but we do recognize that there are a number of ways that the city can leverage general fund for capital projects. obviously the general obligation bond is the typical way that the city borrows money to fund infrastructure as the lowest cost to the city. it also allows for a process to evaluate and prioritize the ifd is a concept that is still a very new one. there is only two that exist in the state and neither of them leverage debt which is what is needed in order to accomplish many of these projects. it's a complex financing mechanism. it's time consuming, it's administratively difficult to do and again we have general

obligation bonds for participation which is two common ways we raise money for infrastructure as well as within our own capital plan there is pay as you go with general fund money and there are grants and other federal sources that can be leveraged with a portion of a general fund match in order to make infrastructure improvements in transportation and in parks and in other areas. so, it takes a long time to set up and an ifd the money doesn't come inform many many years. the recommendation from the controllers office and the mayor's office is to take a look at the way it's done and before entering into debt in order to satisfy some of those requirement. we are leaving the door open to that but there are other ways of funding the projects and that would be our

proposal or advice to the board and the mayor. >> are there any other projects under way? >> there is one in carlsbad and rincon. >> that is rincon project been successful? >> again, they have more needs than dollars. there is a long pipeline and as the economy is improving and more construction is occurring, more money will come in. similar lateral to -- similarly to the impact development that money will come in. >> i just want to speak to the rincon hill that was

established by the board of supervisors. we haven't used any funding or there haven't been any sale of the bond proceed. it's untested in terms of the selling of the bond. we are going to pro port to start using that pay as you go. we haven't used it to date. >> i understand that. is carlsbad, california the only other city? >> that's to my understanding yeah. >> i just wanted to fill out the conversation more. budget director with the mayor's office. just also on the ifd issue. specifically with rincon hill there have not been sales in the past. we've not been able to use that instrument and

it's basically like one of the benefits of ifd is we thought we would be able to get money immediately and pay it off over time and because this is a new instrument not used very much in california, we haven't seen the ability to bond that resource. i wanted to highlight for ifd and is the equivalent for administrative hurdles. there is other ifd's that the city has looked at and for example with the core ifd there is special legislation which get additional leverage. they get to pull a larger portion of the property tax dollar of the state. that is not we have something available to this area here or in rincon hill. from the city's per expect -- perspective we want to make sure we are leveraging the

funds and we want to make sure we are using the best financial instrument and not get stuck on a single tool when there is better options that might get us better funds. >> why are we not using ifd? >> there are specific parts they are using it and specifically prioritizing areas for that. >> maybe for another conversation but it was communicated to me that the mayor's budget office was against ifd for the redevelopment of pier 70s. which is a statement that we can leverage for money on the state. >> i don't know if i can speak to that, but we've moved forwar