director heinicke: couple of questions. were the folks in san diego and new jersey covered by -- >> that is a good question. i will try to find that out. i was going to ask mark, and he kind of slipped out. director heinicke: i want to make sure that the recommendation we have for our policy here for $10 million -- when it says dno and public official, i assume that would cover our staff were anything that might be included there? >> that is correct. director heinicke: that raises a question -- i mean, part of this is -- you know, you have insurance policies to protect your staff and make sure you are able to get qualified financial people in the markets and someone might want to come in and work for us, sees we do not have this insurance and might be less likely to work for us. this is not just about protecting current employees. it is about keeping us competitive. my question is -- $150,000 retention, i assume, would be something that would not be put on the individual employee. it would be a situation with the agency wou

director heinicke? director heinicke: a lot of this is just confirmation. i think there were some comments i want to set straight. we're issuing bonds primarily for two purposes. one, we are refinancing existing debt. the borrowing terms are very good. and number two, the other primary component is issuing debt to get funds up front so we cannot build garages but actually sort of rehabilitate an update our existing garage fleet, with the purpose being that they are safe and serviceable for people using them, and that in turn allows us to obtain maximum revenue from the leases that we did with the companies to operate them. is that a fair summary of what we are doing? >> very well said. director heinicke: ok. on that, one further question about what we are not doing today, we are not approving any updating leases. rather, we're putting into place a rehabilitation plan so we can get optimize those leases, but we will have a system where the companies will know and love it more of the state of play before we renegotiate leases. >> the two things that you are n

chairman nolan: director heinicke? director heinicke: did we take 10.5? i want to congratulate the deputy director and his staff. that is working so well. and on those notes, i did want to comment on the public comment section. i do hope that director johnson or debra, that someone from your staff will get back with the hayes valley neighborhood association so we can hear them out on 21 and speak with them, and i think one of the other comments that struck with me was from charles. i think one of the reasons would be to coordinate things like pco compliance. obviously, if it was a situation where a police officer removed a taxicab into a zone, there should not be a ticket. but as we did say quite clearly, taxis are part of our transit, so i would hope we could have some discussion with the taxicab drivers and pco's to make sure that the citations are only being issued when they are warranted and not when transit needs are being served. chairman nolan: thank you. next item. secretary boomer: you are moving on to your regular items. item 11, and 12, acting

director heinicke? director heinicke: i do not know if you have had the chance to meet that man from rescue muni, but he has a discussion about that project and what he is happy with and what he wishes would also happen. i think there are some things that may be outside the scope of the project, but i realize as you are coming new to this job and learning this community, it might be helpful for us to give you input. i would suggest that mr. sullivan, who is a thoughtful person with whom i have had some thoughtful discussions when i was coming up to speed about muni work, i would suggest to you that this might be one topic that you could reach out to him as you get to know him, because he and his organization care a great deal. director nolan: anyone else on this? >> secretary -- secretary bopo -- boomer: there are no speaker cards on this. director nolan: a really informative discussion. at some point, on a day like today, when we do not have a lot, to have a report from them. the director of the projec

director heinicke: my only question is procedure. i think this is clear, but at the beginning, you said we were on the verge of issuing debt. we are on the verge of considering whether to issue debt. >> that was the direction we believe we received at the last board meeting, but before we can issue debt, you have to approve the document. the board of supervisors has to approve the documents, so that is where we believe we are at this point in the process. director heinicke: ok, so, then these are important questions to ask, and i will ask a few more. we're talking of that debt issuance for the parking garage. with talk about the other capital project that we talked about before. it is your understanding that we have told you all to issue this debt but simply review the documents going out? is that where we are procedurally? >> i believe we think we have the authority to proceed with issuing $100 million in new money and a refund existing debt, $100 million to be split between transit -- director heinicke: that is sort of the refinanc

director heinicke? director heinicke: thank you for the park. they call upon me to carry on a legacy. i hope he knows that i am already doing that, and we have already received a report on that, so in case others are interested, my understanding of the status of that is that in the long segment of the twin peaks tunnel, to be determined that the current speed is the optimal speed, but in the year -- occurs, there is currently a slow order awaiting rail improvements which in happen in the next month and is anticipated and has already been presented to us by mr. haley. then the speed would return to what it was before the issue -- the order was issued. if i have the status wrong, please let me know later, but i think that is where it is. i wanted to reiterate that. president nolan: thank you. mrs. stuart? >> they will return to the board with an update on that item with regard to the rieker curve. director -- with regard to the eureka curve. director nolan: next item. secretary boomer: the report. >> thank you to the agency for supporting that. we

. >> [inaudible] director heinicke. [laughter] director heinicke: certainly not. [laughter] that is what we will avoid. if you listen closely, hopefully. >> ok. i am going to touch on just a few of the major recent enforcement actions. i think it is useful just to kind of bring it home. you are probably familiar with these as they occurred. we are going to touch on the orange county, the city of san diego and the state of new jersey, which is the most recent one. as you recall, orange county -- i mean, they ended up going bankrupt, so it was quite a mess. all the bonds, i think, were paid in full. some of the payments may have been delayed, but in some sense, the conclusion of the story was that everyone did eventually get paid. however, at the time, the county was running basically a significant part of its budget off of a derivative scheme, or they were investing in very dangerous investments that were working to generate a lot of revenues -- risky investments. all well and good except that none of it was disclosed. so really, that is what got them in trouble. i