>> the city of san francisco sfgtv meeting of the san francisco transportation

authority occurring january 14, 2014, will begin shortly.

>> hello, everyone and welcome back to the finance committee. let's see here. to my left, far left is katie tang and she is the vice chair and commissioner david chiu, are you? we are off to a rough start already. my notes. >> okay, well you guys know who everyone is, let's just go ahead and get started. i would like to take a moment and thank jessy larson and charles for broadcasting today's meeting, madam clerk are there any announcements? >> no naounsments. >> great. could you call item one? >> items two and three, for the consent calendar. and these items are considered routine, and the staff are not planing to present these and if a member would like to sever an

item for discussion, we can do that. >> all right. >> thank you very much. >> so would anyone like to sever this item? >> would any of the commissioners like to sever an item. >> it looks like there is no interest in that. so we can continue. >> okay. >> thank you. >> is there a motion? >> okay. there is a motion made by tang, and seconded by david chiu and passes. >> number four, to authority executive direct tore execute an amendment to the memorandum of the agreement to the treasure island development authority for the i80 yerba buena island interchange improvement project to did he ever the initial loan payment by one year. and this is an action item. >> good morning, deputy director for finance and administration, we have been working with the treasure

island development authority on the development of i-80/yerba buena island improvement project for five years and, back then we asked the transportation authority in the capacity of the management agency, to lead the efforts to obtain all of the required technical documents for the project in and due to our expertise and funding and due to the fact that we had many opportunities to interact with cal transon the aspects of the project. and back in july of 2008, this committee and the board approved and the agreement between tita and the transportation authority for the project management oversight for the engineer and environmental society, and the project and as you may remember, back in july of 2013, i brought to you the 5th amendment and this is where we were seeking an increased amount on the loan from 10 million to 11 million due to additional funding that we received and we were bringing

this back to you before because of a recent request made by tita, and the current mla states that the balance of approximately 10.4 million right now is to be structured and four equal payments from december 21st, 2013, to december 31st, december, and the first payment game dao on december first, but due to a delay of transfer to the land and they have asked to come before the committee to seek a restructure in the loan agreement. i have today, mr. robert beck from tita here to discuss with you and present to you the reasons for the delay in the project. thank you. >> thank you, chair, cohen and commissioners as you are aware, the disposition of the development agreement and the related documents for the development of treasure ilabed were adopted in july of 2011,

and the current schedule for repayment of the loan was agreed to an amendment four to the current mla that was executed in november of 2011, and that structure at that time, reflected the anticipated schedule for the transfer of the land from the navy to tita and the start of the development activities on the island, as well as the timing of the rams project. the schedule was impacted most significantly by the legal challenge to the eir, and what that has been ruled in favor of the city and kicd. and the developers is prepared to proceed with the development of the project even though that challenge is still an appeal.

the tita is finalizing at this time, the terms of the economic development conveyance memo of the agreement with the navy that will governor the timing of the transfer of land and we currently expect the first transfer to occur in november of 2014 this coming november and the developer in anticipation of the edmcoa and the land transfer advertised for consultant services to prepare the major phase application for the first phase of development and so they are ramping up anticipation of the first quarter, 2015 start of development on treasure island and we are requesting this modification of the agreement with the sfcta to align the first payment under our agreement with the start of development activities next year. so, i can answer any questions that you have about our work with the ticb. or a work with the

transportation authority. >> okay, it seems like there are no questions, oh,, taning? >> just one question, i just wanted to know in the event that the transfer does not occur per our expected time line, what are the plans or what plans do you have in place for that? >> yeah. the over all schedule does provide for the full repayment, and the payment on what was originally due earlier of december of 31, 2013, or the transfer of land to the developer, now we are timing it off of the transfer of land from us to the navy and so if the developer is delayed in completing their major phase application, as long as the transfer of land to the navy to us occurs that is when the payment will be due and along with the developer's payment, and the payments that are required of the developer to the navy for the land value.

okay. >> thank you. >> yeah. >> okay, seeing that there are no other questions. thank you for your presentation. thank you. >> just to mention that this item has not gone before the cdc due to the holiday schedule and in terms of fiscal impacts, i could mention the amount due of december, 31, was 2.6 million, we would be removing this from the adopted annual budget and deferring that into next year's budget and adjusting subsequent budget to reflect this new payment schedule which would be over 3-year period, with the first payment at 50 percent of the balance and second year payment with another 50 percent of that remaining balance and the remaining balance in december 31, 2016. so the schedule would stay approximately the same to the original loan structure. and i am more than happy to answer any questions if you have any. seeing no questions, let's go

to public comment on this item. >> all right. the floor is open for public comment at this time. any members of the public could take two minutes to speak on this item. okay. seeing none. public comment is closed. >> are there any other questions? >> okay. seeing none, is there a motion on this item? >> all right. motion made by supervisor chiu and seconded by supervisor tang, this motion passes. madam clerk, could you call item five? >> state and federal legislative update, this is an information item. >> thank you, welcome back. >> thank you very much and good morning, i was going to report for a few things for you and now that the legislature is back in session things are starting to ramp up and i want to report a little bit on the state budget and the implications that it has for the transportation agencies such as yourself and give you an update on an initiative that is seeking to be qualified

potentially, that would provide several billion dollars for transportation maintenance and rehabilitation including transit system and just a quick update on where things are moving on the high speed rail program. so with respect with the budget, the governor has proposed a new budget that proposes 106, almost 107 billion dollars in expenditures which is up 8 percent from the budget that is in place right now. and the revenues have increased some what more rapidly than folks had anticipated and so it is a bit of a happier place in sacramento in terms of budget and there are still issues that will be sorted out during the budget process and one of the key features of the budget is a pretty healthy reserve, and the reserve totals almost 2 and a half billion dollars and about a billion of that is a regular standing reserve that would be available throughout the year, or to carry forward if it is not needed.

and about a billion six of the reserve is the beginning of the replenishment of the rainy day fund under the current law, although the governor is going to propose an amendment to further strengthen the rainy day fund and i am not up to speed on the details of that. i have not seen the details and we are waiting for the trailer built language to come out that will flush that out and we will be able to report on that in the future if so desired. and so probably one of the most positive development for the transportation agencies was the happy news that the governor is proposing to release the remainder of the prop 1, b transit, and a total of more than 800 million dollars and about 100 of that is for the inner city rail and that will finish up that program under prop one b and the balance of over 700 million dollars to the distributed to the transit agencies across the state. would deplete that program, as well. so, that is something that the transportation and transit agencies pushed for last year and we are happy to see it included in this year's budget and we think that it will go

through fairly well. and so any of the formula funds that were anticipated in san francisco would now flow and once that budget is approved, that portion of the budget is approved, and another key element of the budget is smaller amount but it is an interesting proposal. the governor is attempting to eliminate the wall of debt and one component is 350 million and that was loaned from transportation resources to the againeral fund several years ago and if it is not expected under the current law to be repaid until 2021 and he is advancing that 351 million dollars and he is going to debt dicate it to a program or a series of components and 100 million going into the state for highway maintenance and repair and 100 million dollars to be divided between city and counties in the state. strictly for road maintenance and then pavement repair. and one key element here, i am

not sure how this role, if this will satisfy the folks enough but in the active transportation program, the legislation was approved last summer and there was about 130 million dollars provided and in an appropriation for a wider array of program elements. and he would propose to spend about 9 million of this earlier pay back money to supplement that to enhance the active transportation program by 9 million dollars. probably the more interesting or not or another interesting development was his proposal on cap and trade funding and there are some transportation components in there and so he will briefly describe that and so in the cap and trade, if you recall last summer, the governor had projected about 500 million dollars being available from cap and trade revenues for the extend tur and instead, loan that to the general fund. and he is now saying, i would like to take 100 million of that back and it would be 400

million dollars, and in addition, he anticipates over 700 million in auction revenues in the budget year. and so he is proposing a brand new allocation or an appropriation totaling $850 million. of that, $300 is going into rail modernation, and the rail moderization is the new administration phrase to incapsuleate the upgrading the rail system and funding the high speed rail and from money that he is taking from cap and trade, 250 of that will go for a high speed rail, authority to continue to do some of the phase one planning. as well as to undertake right away acquisition in the central valley, for the next component of the initial construction segment. there is funding for sustain able community, projects and in

other words, infrastructure that enhances the community, and the sustainable community strategy and that could be a range of activities. and he is providing for 140 million dollars in energy efficiency, activities including clean energy, and although they highlighted and they did not want to spend the money on commercial and the passenger vehicle clean energy. last but not least for the first time since 2008, the administration is proposed and state wide infrastructure plan, this one focuses on deferred on main nens and allocates 118 million from a wide range of programs or revenue sources for to fund the infrastructure plan and in the budget year. so that in essence is the highlight overview of what is going on in transportation, we will have to see more details in the coming weeks now that the budget is out. and to see if there is any

other nuggets that we can pull together and secondary we are going to be waiting for and looking for the actual trailer building language which will house these new program proposals will be structured and if there is any weaknesses in there that we may have to address. and i did mention at the top that i was going to provide an update and the transportation californian organization comprised of contractors and labor had submitted back in november and initiative proposal, two versions they are virtually identical with one modest change, the idea was to impose a one percent fee on the price of the vehicles, to be collected just like the vlf has done and it is a new tax. if the voters approved it. the funding will be appropriated or directed in the measure, i want to say, 40, 20 percent to the counties and 20 percent to the cities, and i think that i have got that

wrong. the total is 60 percent goes to local governments so it is 25 for cities and 25 for county and 10 percent to transit with the 40 percent going into the state highway reconstruction. that measure is, it has gone through the legislative analyst review for revenue estimates and impacts. and late last night, the attorney general released their title and summary, it was 100 word summary that goes on the petition and as i understand it, the organization will be going in the field to pull and see if there is anything in that language that either gives them promise that it might pass or conversely, presents a problem and may elect not to succeed. >> and they will know in the next week if that is something that will move forward and finally, on high speed rail, i think that there are a couple of developments and first, the

development in the early fall with the legal decisions that were negative wards the release of the additional state bounds, and based on an inadequate funding plan and so the high speed rail authority is developing a new one and we will take it back to the court for consideration, and that is kind of a hiatus and we get that done and there have been two initiatives introduced to the attorney general's office. within the next week or two. we want to reallocate the existing bonds that remain and spend it on a high new technology infrastructure and it is a tube system that they hope to see voters approve. the second one was just launched this last week by, and republican and someone in the member of the public and

southern member of california who is running for congress and his will bring the program to a halt. so *, i am not sure who is going to back him on that other than it will give him a stake in his campaign. and that is where it stands, the contractor on the first contract will shortly be breaking ground now by north of bakersfield and that project will be funded with the federal aid that was promised and provided to california in lieu of the prop one a bonds, since those are held up right now and so that project will proceed as far as i can tell. and as i indicated the governor is providing additional money, if it is approved by the legislature to continue the right-of-way to get to the next construction segment of that very first phase. so with that, i bring my report to a close and answer any questions. >> well that was very thoughtful report. are there any other questions or concerns? okay. thank you, for your report. >> thank you very much. >> good morning, chair and

commissioners i just wanted to alert you to an e-mail that i had sent last night to your offices to give you a heads up about a conference and this is our annual trip with mtc and our chamber of commerce to washington, d.c. and a trip to sacramento to organize the advocacy for the city and the mayor's office and mtc and the other organization to advise you and we will be bringing to get a legislative platform to you next month and those of you who may be interested, the dates are march 9th, and i believe march 9th through 12th at the mtc trip and followed by the chamber of commerce trip and i encourage you to come and join the delegation. >> thank you. >> all right. madam clerk, you can take public comment on item five. >> let's open the floor for public comment on item five. the information that was

presented. seeing none, public comment is closed. >> madam clerk, could you call item six? >> introduction of new items this is an information item. >> are there any questions? >> comments? introductions? >> none. and are there any members of the public that would like to speak on item six? >> okay. seeing none, public comment is closed. >> madam clerk sh there any other item to call. >> item 7, public comment. >> general public comment at this time. >> okay, public comment is closed. thank you. >> madam clerk, is there any other business before the committee. >> no. item eight adjournment. thank you. >> this meeting is ajournd.