they estimate savings of $48,000 less than the estimated less of 7.8 million toand supplies unde city's regular competitive processes so our recommendations -- we have a recommendation to address that because that is an estimate we think the board should get more information given this is a pilot project which we believe is a good project but we believe there further information and page 69 we recommend that you approve this contract and in the period listed and amend the legislation for the option to extend the two year term is up to three additional one year terms at the director of transportation sole's disresidence and not to exceed amount listed. on recommendation three there is a typo there that we say to amend the report. we amend to say "amend the resolution" to require sfmta to report to the board of supervisors on actual savings realized as a result of the proposed contract based on mta's contract valuation at the end of the year fiscal year and that is the specific recommendation i clarified and we recommend that you approve the legislation as amended. >> okay. supervisor ava

it could push those out of the city run coverage and into the new insurance changes created unde obamacare. south of the city's push and a burden on the federal taxpayers, right? we also have fox news with us. that is exactly what is going on, right? we're not going to provide the federal bailout, not a penny, but they take people guaranteed retirees health care, push them into the obamacare exchanges which means the feds pick up a big portion and that would be us. in essence that is a federal or partial federal bailout. >> 7500 employees over 11,000 in chicago eyeing a similar plan. if the employee up to 400% of the poverty level, you'll end up about $4000 towards the premiums by the fed. that sounds like a bailout for me. that is coming out of the taxpayer pocket. if you arene of these, you say wait a minute, i worked my whole career in the city of detroit and i have to now pay what? i thought my health insurance was fully covered. they will pay the whole thing. if they can afford it. melissa: you agree with that breakdown? it seems like almost everybody los because employees and former

gerri: we have to haveome sympathy for these people, but the city overpromise and und delivered. people are not paying their water bills, their heating bills, athe end of the y the city has ma major mistakes on theay and if anybody was to pay, it has to be the lal government. >> here's where get down to the crux of the probl. not just in califora, but with detroit and even bger cities like los angeles that have a looming pension problem. not that we don't feel for them who have been promed in the past, if t money is not there, somebody will have to renegotiate. that is what bankruptcy allows them to do. if it's a hacut so somebody can get the same kind of penalty in the end we would have a much more successful outcome. gerri: i don't know. this is going to be a big fight. a judge today so this bigoted filing is unconstitutional. yolook back, gm was in bankruptcy for s weeks, how long is this thing going to last r the ci of detroit? >> this is a completely different kettle of fish. chapter for corporations, it is a different thing. the other poini want to make is 18 or $20 billion

city that is losing about 300 people. the population has dropped from 2 milli to und 700,000. this town needs businesses. ds residents. taxing them and regulating the business to drive more of them now. john: darcy, you list three things that all city should do. privatization, water the of a two? >> well, transparency which is a big one. gaithersburg, md., has zero dead and half for 40 years. everything they do, these contracts, all of those contracts, or on line. audi, accounting. it helps. a little bit of sunshine lets people know what's going on and creates a culture of trust which is important for getting people to want to invest and come back into the city. john: before a city can get new debts goldwater says -- >> voters should have to approve it. bonds ve to go before the voters. quite often they say no. that's a great check on curbing these huge liabilities. john: despite all the debt coming to church as the third highest income tax of any major city. after philadelphia and lewisville which are doinghat great either. detroit is in the worst shape. >> detroit, it even taxes and utility bills of res