campos and we will take that with the roll call vote. >> avalos >> aye. >> campos. >> aye. >> cohen? >> absent. >> kim. >> absent. >> mar. >> aye. >> items passed. >> okay, very good, let's go on to item four. >> recommend the authorizing executive director to replace the transportation authority commercial paper program with the revolving credit and agreement, and enter into an facility and the negotiations on state street are not successful and take on the action and negotiate in the terms and the non-term agreement terms and conditions. >> we have cythia welcome. >> good morning. >> i am here at the transportation authority. and what i have before you, is a request to terminate or commercial paper program, and as you may recall, approximately ten years ago, it is transportation authority started a commercial paper program as of that amount of $200 million and, we have issued $250 million, of the commercial paper outstanding in fiscal year 05 and 06 and as of today we have 135 million outstanding and the program has been running for ten years, and as part of the commercial paper program and we need a letter of credit to support this facility, and what has gone on is over the past years, we have contracted the various banks and the letter of credit and now we are coming upon us an expiration date of the letter of credit that we have at wells fargo, and the expiration is july, 20, 2015 and issued an rpf a few months back asking the various banks to propose another letter of credit or any other facilities and i with like to refer to table one, as which lists out, those six banks that we received proposals from. and at various, levels and facility and we have had the letter of credit and two banks proposing with tax exempt resolvers and those banks that we are suggesting to award the contract to, is the state street, public lending corporation and they proposed with not only a letter of credit but also with a tax accept, and that would the proposal at 40.3, basis points and in terms of the cost of managing over all program. and while, we are currently payin wells fargo, 70 basis points and we are looking to terminate the commercial paper program and it create a new program, that tax exempt that would act more like a lawn for the outstanding, $135 million and growing with this type of facility will reduce the amount of work for the transportation staff is also cut, and some of the middle men such as jp morgan as a remarker and we would not have to pay them as well. and in addition, it would have less risks for the 135 million that we have outstanding and less risk in terms of having investments sit out there for 370 days waiting for the market and waiting to see if the invest tore will pick up this investment and instead we will be working with the streets, and the states bank and they would hold the loan and there would be no need to remarket this type of a facility and every 270 days. and with that, street safe banks has provided various financial vehicles and facilities to the puc here and the city and county of san francisco and the sfmta and the airport and for, the center project. we would be saving 500,000 per year every a three year contract and that is more money for our projects and the cec was presented this item back on april, 22nd and it was a vote for a motion of support for this item. and with that, would i like to open this to any questions? >> commissioner mar? >> yeah. and thank you, deputy director, fong and i wanted to ask, where is the state street bank located? >> well actually located in boston and we have recently created our, or recently started to work with the city and county of san francisco over the last two years and this is an item that have briefed the controller's office and they have obtained the references from the various city staff who are using the bank. >> and i find that is fascinating besides wells fargo who it seems like we used before, three of the banks that put or did sent in and they seem like japanese banks. >> yes. >> yes, they are. >> and is that a trend where we are seeing more foreign banks or foreign capitol bidding on different? >> yes, three years ago, we had six various banks and half of the banks were from japanese, and we are looking to get into the american market. >> if you want additional information. >> no. >> do i have the council and financial advisors ready and willing to answer the questions. >> the other questions and how do we expect and i know that we have a commercial paper, loan, and we will work to pay that down and, how will that program really enable us to work toward that level of debt and paying that down? >> so this will be saving us $500,000 each year and that helps in all different ways and defending for the project and this, and the plan for this facility is to hold, or to start off with 135 million and to start paying it down each fiscal year, or actually each calendar year, and how we do it based on each of them needed for each of the fiscal years and the plan is to pay it down and over the next five years and the outstanding balance, but depending on what the needs are coming from our various departments or various transportation authority who we sponsor the projects with and maybe another road that we need to take and is you the debt and we will refund this loan and that will be off of the expense. >> okay, and at the current rate, now, and then, the next item. and in this agenda, we also have the first look at the transportation authority's fiscal year, 15/16 and it will go more into the levels of the expenditure for the fiscal year. >> okay. >> and any other comments from the committee? and so why don't we go to the public comment, on this item? to the public comment is now open to item four and any member of the public that would like to comment and we will take the time and close the public comment. and this is an action item. >> so, colleagues. do we have a motion? >> it is all, move the approval. >> okay, i second it by the commissioner kim, and we will have a roll call vote? >> on item four? avalos? >> aye. >> campos? >> aye. >> and commissioner cohen. >> aye. >> and kim. >> aye. >> and commissioner mar. >> aye. >> the item passes. >> okay, let's go to the next item >> item five, state and federal legislative up date and this is an action item. >> we have three in support and four in opposition and i would like to go through those and i would note on the further consultation, we are going to revise the recommendation that is in the and so the first measure is simply, the bill 35, by mr. chiu and on page 4 of the matrix. and it will increase the state tax credit, level, for low income housing to $300 million. and at the state level, and which allows access to several 100 million dollars in additional federal funding, by doing so. and this is, and we will recommending support on this measure. and the city and county. >> ab, 1335, on page 18. and this is speaker atkins measure, and dealing with the affordable housing as well. and this is, very similar and drawn from and the senate bill, 391 from the