our friends and folks of the ada community this will be recountered in january of the entire budget i think you roman numeral the members of this board have gone on record of being supportive we're looking forward to this hearing and we'll have a set time for that one or two clock to people know when it is thank you for interest andng to do do consent calendar and circle to the honors 0 consent calendar arrest all right. directors i understand no members of the public have indicated american people interest in severing and discussing an item on the consent calendar i do you i know you w have a board member we have to recuse the member so

second. >> all in favor, say i. you are recused and then this consent calendar and item 3 to rekinds so the votes is on temple .3 motion to approve. >> second. >> all in favor, say i. so it's approved and the remainder of the items on the consent calendar second and second and all in favor, say i. opposed? the i's have it thank you very much. we'll go to the anti so members. >> item 16 discussing the mta financial anti and directors no member of the public we'll present the year-end anti once again a positive story we have k p m that is going to rent just a

snapshot we were $260 million over last year our expenditures were higher than this we added to the assets about $251 million theres part of the reason for the ratings other than the asset side our total assets increased toy by 47 millions on the capital side we're putting more stuff into the ground and masonic our employee side and our personal services we had a higher adjourned estimated claims than projected 0 our net assets liability increased by

$420 million we completed the identity in record time and once again that was q key to our bond ratings i'm going to turn it over to my colleague. >> good afternoon. i'm lisa i'm the senior manager that bills was - we're required to discuss with those charged that governance over mta you have a slide presentation this year's on 5 slides slide number one our responsibilities under generally accepted italy standards we do not express an opinion on internal controls but that came to our attention we explicit identify anything that was to be redirect to you in looking at internal controls we provide the

reasonable insurance not absolute insurance we performed tests over comploemz with last and regulations nothing came to our attention as part of the anti we also required to opine on the financial statement and the financial statement received a clean bill of health and also provide limited procures to manages discussion and analysis by the statements it is in their own terms what the financial highlight we're not required to competence an opinion but rate it for consistency significant accounting policy that are noted in the financial statement we've reviewed those and discussed those with managed their consistent with the general accepted industry standards across the country we discussed the quality of their

accounting practices whether their applied significantly across the years and where they equality and slide two accounting estimates are an integral part of the financial anti we considered the estimating amazes for workers' comp and general liability we looked at the estimate and didn't come up with what management had estimated those liabilities to be so looking at slide number 3 no uncorrected statements during the year so any adjustment that were note were corrected and we'll notice as stated earlier we issued the financial statement opinion by that was imposed and noticed to disagreement with the staff and

they've not communicated with other firms during the year under anti and no more issues that were discuss prior to the managed with us and we have the representation their responsibilities in taking ownership of the financial statements so thank you again yourself time today, if you have questions. >> i do about consulting request other companies. >> why was if he communicated with other agencies during the years why was it bad. >> it was brought to our attention we asked in management was discussing something we ask them to bring it to our attention. >> you do a lot of agencies.

>> yeah. >> can you thrills without mentioning their names a typical problems that agencies run into. >> the typical problems i can say are financial statements anti - audits we tend to see a lot of scrutiny over the federal dollars especially with the reinvestment recovery dollars and roof of the programs we're currently doing the audit for intuitively another thing a lot of entities struggle with are a big one requiring pension liabilities for all the fiscal aids to be recorded and this is a going to have a big quack on

the finest statements so not so much the financial aspect by the way more standards. >> so this is universal next year for everybody and for everybody yes, we'll you'll be in the same boat and board questions or comments. >> no. >> have you a question or comment. >> well, thank you very much thank you congratulations on tour shop for doing a fine job. >> are we supposed to receive this just receive that consider it received thank you okay. now since suggested. >> number of people for item 15 why not go that one ambassador mr. chairman for the record no

members who indicated an interest in regards to item 16 to this is the preparation for the study. >> good afternoon director nolan and i'm from the strategic planning i'm going to introduce the speakers from the planning from mta and the senior engineer with the san francisco municipal transportation agency they're going to egg over the work they've done to requests to look at extending the subway up to the waterfront and it's an informational item. >> good afternoon. >> director nolan and directors and director reiskin thank you for viewing us we know it's quick so here's the whole report. >> (laughter). >> and lots of fun reading two

other people if the back nick from the planning department this was a 3 agency cooperation effort with the mta and the transportation authority and eqt sal so slide one bob and i are going to tobacco tag team the original of the studies the live interest in the board of supervisors and also look at where would this line go back to the four corner study it looked at the capital expansion on the rail system in mta we were given the task and given task from the transportation authority but it was a a little bit of outside information to provide the report

concept alignments there are 4 actually, it says 3 but conversion on number 2 and want to stay with the existing corridors so the route on columbus and powell not getting into new corridors that will be difficult than to look at existing ones there are 4 obviously columbus is number one and 2 to powell street to the kirkland and third powell beach and 4 an idea out of the operations department a one way route to come back you only need to borrow one tunnel instead of two and an issue of turning the trains around but we'll not have to do the sophisticated cross offers next slide out of that we looked at the 15 concept alignments we didn't want to call them alternative

this is a prepre prefeasibility study and we looked at subway and surface subway the reason that powell has more options there's different was to turn the services arena looking at the f line we wanted to look at it we thought that question would come up it came up with issues in the reporting so the highlights 14 alignments and two were unfeasible because of the an existing sewer line that runs at the north point that makes the grade difficult to we screened those out here's a quick cross section an un wraptd triangle it shows a preliminary analysis which what is in the ground from chinatown in north beach areas and the agreement with or

initial finding by the consultant we'll look for deeper ground in the north area next slide a number of issues we found no flaws in faxtion yes the area where the whole project could be is an area that could be that and the sea level around the station potential site it will impact the area by not thoughts couldn't be designed in a manner to take care of that the timeline estimates the phase two data and our existing sfals run time data for a those estimates and the best we can see from going from chinatown north to the i said of the line one station one dwell and under

a little over 3 minutes and 3 and a half minutes to go up columbus and the surface links are a little bit longer roughly a 2 to 3 split the ron runway loop is 8 minutes and those are permeate stechlts a quick time comparison the purport box if those alignments were built from chinatown under the construction phase two project that is roughly 14 to 20 miles an hour and the loop will roughly be in that area significantly faster i'm going to turn it over to for bob for the next several side. >> thanks paul mccartney u paul.

>> with those large improvements this extension as strong ridership riders about a quarter of those riders will be new trips open metropolitan folks moving to the subway and including the f line he etc. this is a good benefit those lines are over crowded and projected to get norway crowded you'll see this relieving the situation one of the concerns we have with the ridership whether the subway can handle it it doesn't includes as much of the area because of the neighborhoods the upper red line shows it is something on the order of 3

minutes train a 2 hundred 5 minute train >> our partners in this study is the planning department analyzed the geographics in the areas those neighborhoods are largely built out there are a few soft sites within a quarter of a mile radius and no off-site within a quarter of a mile of the north beach station using the planning department day our statistic economic evaluated the note that takes advantage of the property increases to help pay for the project there are several tools to obtain bonds but no one are going to pay for it in full those tools require substantial

improvement they found that changing things like zoning height when increase the revenue from those mechanisms so we're looking at $100 million and 2 hundred this is 5 to 20 percent of the project that brings us to the capital costs estimate our cost folks perpetrate the magnitude costs for the concepts based on the database of similar database but adjusted for the inform those are 20 to $14 usable for the concept the biggest drivers are the length of the alignment and the underground surface our costs are $440 million up to $4.4 billion for the underground expect he'll notice that the

undermine concept are r's are twice as fast in the option so as an example the left columns are the civic extensions later than accident area you'll see an estimate of $500 million and $900 million for an underground opposite we used the underground option to compare to the national basis so the federal cost effectiveness rating those promotions will be comfortably in the highest cost focusness in terms of dollars per trip fta program with the central subway will be an important part of the funding program for a project of this size but the

land value has a potential to make the local match sales with the sales tax there are other joint developments that can come into that i'm going to turn it over to paul about other issues. >> we're in the homestretch the north beach station issue one of the things we've made clear nothing can happen until new environmental work is done for phase one and two has stretched that to the limit there were tradeoffs with different construction methods it gets more detailed but if you're in the nut shelf it would be less expensive we have data in the report not or in the report $333 million is the initial estimate and the estimate for the one that would

be less disruptive and take longer than for concussion will say $500 million that seems higher than than the estimate you're doing a full turn around if there was a station wagon that was added into it they will be taking care of conrad square issue on the palace i'm going to turn it over to we have a lease hold on it for removing the t b m that is through may have rir7d and the first right of refusal this is in the appendix the owner is prepping to build 19 units and the department is going forward on this they're not waiting around for something

to happen we look forward to that. >> how is the first right of refusal come in. >> if we say going forward for some reason didn't want to do the 19 units but thought he'd he sell it off that's the first right of refusal i'll have to conform that but that's my understanding after talking about with here that's christen. >> this is the matrix there is 7 categories to do a quick summary comparison we were not going to pick a subway alliance from passengers they were graded plus it's better than average and the menus we think less than average and the green row the subway to columbia and to go powell are the ones with the

highest scores and on the higher right one that goes up powell and the beach i'll be honest the group was bias on the subway alignments the issue was the liability and the long-term (we thought that would have a better performance. >> i think we courage you to read section 6 in the report if you're interested in a quantitatively active some of those things are more important than others ass. >> at the bottom we looked how difficult and challenging to construct and if you have a higher score here you again scored it was a more favorable number there recent 5s and 4s across there so your concept alignment i'll go through it columbus and powell and over on

the beach and the one we've looped the line is going to come up from chvpt to north beach and with the tunnel in place the last slide is the next slide where does that go the blue line is the study and we're sharing with the officials it will feed into the 2040 plan and the strategy that is due to be implemented in 2015 with the rails in place including a new extension and old existing stuff that's in place such as the market street place that report is due out next year and this is the transit study due out later in 2016 that completes our report and the report is available online the appendix

was up lowest this afternoon. >> board any comments. >> all right. so you do have members of the public that want to address you (calling names). >> good afternoon i was looking at the slide presentation that's not about how to enhance the fleet to enhance the fleet lines from what i understand that the additional cars that's being purchased is to be used to replace the existing by the time at that cars not enhancing the fleet of the transit expansion two, that will be a liability to

go ahead with this project as a subway because in the softness of we had rock you don't have to be an engineer to know that 75 thousand pound car a million or whatever the weight of the cement and the passengers on board and the location of the bay is a disaster it's totally ridiculous concept that would be better to run 0 on the surface of the street above vs. as a subway so it is ridiculous how this board wastes this public funds to do all those studies and things and it's a waste of our money if you want to conveyance the service take the money and

enhance the lighter mode of transportation like the trolley and run that down through through the fisherman's wharf area this rail is totally ridiculous running a rail through fisherman's wharf that's really ridiculous wasting our money two-time consuming and too costing are for the city and having to deal with corruption. >> thank you. >> thank you. next speaker, please. >> (calling names.) >> good afternoon, sir. >> good afternoon classroom north korean and vice chair brink man and director i'm bruce a member of the central advisory committee sf next stop.org a

member of the hill association my comments are enforced by my association board members first they can the team from the mta and ct a planning for an excellent job of the study and in addition to the quantity active cost benefits data that's highlight in this presentation the central subway to fisherman's wharf provide a connection of the neighborhoods on the earn side of the city from visitacion valley to fisherman's wharf it provides respective applicants to fisherman's wharf hotel rooms to the moscone center and provides capacity to transit demand and ultimately reduce the traffic congestion and trithsz to a more sustainable liveable city we

support the outlines of the data and finding into the various transportation studies as mention in the presentation and recommend that the city may be planning of the real estate investigate the opportunity to obtain efforts ever access to central locations before they go to cite released back to the owner and late in addition to the ct a programs committee we recommend this presentation be shared with the full sfmta board thank you. >> (calling names) and good afternoon. i'm pat valentine i'm part of the advocacy group called next stop advocating for the fisherman's wharf and most of the vice president i'm that over for the presentation this is not only a great extension to get people to

fisherman's wharf and north beach but to bring people down to south beach and mission bay we have a growing merchant community that is very important for the neighbors i live there as well 0 this will have benefits on both sides we've heard the study shows as the benefits of the extension bruce highlighted them a lot of people every time we look to build something people will complain about traffic and expense but i'll be riding the system and so we if we look at how much it took to get bart done and muni underground we see the benefits this is something we have to do for the future of san francisco jim lazarus couldn't stay i want

to read a letter in the chamber of commerce as the work level continues to grow it is essentially, we expand our system with the growth slate to occur in the ed of the city and the t line connecting fisherman's wharf to moscone center makes sense and it will remove transit from the congested streets and will help with the connectivity. >> thank >> thank you. next speaker, please. >> (calling names.) >> good afternoon. >> i'm steven tobacco eerie have a couple of 3 capacities for the last 8 years i've been spurs spokeswoman in favor of the phase two of this project i'm currently the chairman of