of power, and I have been doing outreach and talking to families, and the reason that
muni is important to me is that I depend honoraria and it is
very difficult to pay for the
pass.
It is difficult to even provide
a fast pass.
I want to thank the board and
director reiskin, and I would
like to ask that to make the vote as soon as possible.
Chairman Nolan: thank you. Next?
Secretary boomer: [Reading names]
chairman nolan: that afternoon, Mr. Gilbert.
>> good afternoon, director nolan.
i wanted to have a much to discuss some concerns about the
permit medallion program in san
francisco, and after the taxi advisor in council finished its
discussions, staff, in the
persons of deputy director
hayashi, this would over time
give one-third of the service
from the tax services , and I think this would have a
devastating effect on drivers, taxi drivers, and their careers and their futures in the industry, even with the implementation of the medallion
sales program, which I had opposed.
these would still be able to go into driver' s. They would have this
opportunity, and now, one-third
of the medallions are going to
be taken off the table and given
to a cab companies, and given to cap companies on what basis?
this agency is going to pick the winners and losers in this
industry, and by awarding them
permits, is going to decide
which survive, which struggle to
survive, and which are simply going to die.
we have much more to say about it.
Chairman Nolan: next speaker.
Secretary boomer: [Reading names]
Chairman Nolan: good afternoon. >> good afternoon.
My name is barry pearl, I ride
muni, I have been working here for 28 years.
One of the most infuriating and exasperated experiences with the muni in all of the years that i
have ridden the system, dealing with wage works and the credit card that is assigned to city employees.
We used to deal with a computer
check, which was.
I purchased a pass and had a
total of $68 on the credit card.
I needed for additional dollars in order to buy the past.
-- pass.
I started by contacting one group, and they had no clue as
to how I could take this credit card and take $4 in cash in
order to load onto the clipper card. I then called 311. They had no clue.
Finally, I ended up contacting
the clipper card people, and they directed me to the embarcadero station, where I
could actually deal with a human being and present a credit card
and cash to solve the situation.
It was so infuriated.
Then, wage works sends me an on-
line service, and that was equally infuriated because it
had a 250 character limit in the comment I could make. And then they do not have a phone number. You cannot call them, and they do not allow public input.
They did ultimately respond to
my survey, and they did get back to me, and I give them credit for that, but you need to deal
with your fare machine.
All they say is "you contact your bank." is nonspecific. It was an infuriating process.
Chairman Nolan: thank you. Next.
Secretary boomer: [Reading names]
Herbert w iener.
>> [Speaking foreign language]
>> good afternoon, my name is --
with power, and I am here for
the free nuni for youth campaign.
>> [Speaking foreign language]
>> I am fighting for my kids.
I am fighting for young people, so that they have one less worry, so that they do not have to worry about the money to get
on the bus, so they can focus on their schooling.
i am also thinking in the
poorest neighborhoods, the youth
risk hitting on the back when they do not have the money to get on the bus. >> [Speaking foreign language]
>> san francisco is one of the most beautiful cities, and at
the same time, there is a lot of
really low-income families that live here that are just trying to survive on a day-to-day
basis, single mothers that are just trying to make it.
>> [Speaking foreign language]
>> and I just want to ask you can make this decision and vote in support of this program as soon as possible in this month
of March to come. Thank you.
Chairman Nolan: thank you. Next speaker.
Secretary boomer: [Reading names]
>> good afternoon.
On behalf of the 17 youths commissioners, I want to thank you for meeting with us.
You have heard of a lot of compelling stories from young
people directly, not for me, right?
That 16-year-old from the heart of the fillmore who had to walk
from edie to
steiner street.
Another commissioner who I think articulate why the three
fast pass is so important for undocumented young people and the stigma that a free, reduced
lunch qualification means for people.
That upper-middle-class commissioner who goes to st.
Ignatius and what a free press
is so compelling in bridging a
really significant -- why a free
press -- free pass is so compelling.
and the office of supervisor
campos, to schedule of vote as
soon as possible, ideally March 20. We have been extremely grateful
to work with so much staff in such an honest and helpful way,
and we really hope that given how much of this funding depends
on the votes at other outside agencies that this could happen as soon as possible.
I conclude by just saying that
at the youth commission, I get
calls every day from front-line staff at community
organizations, case managers at
homeless shelters, afterschool workers at big organizations
like the ymca, catholic charities, and they keep asking
about the youth lifeline program
that this board had two years
ago, so we really hope we can move forward with something, especially for the low-income people, as soon as possible. [Bell]
Secretary boomer: [Names]
herbert .
>> I am having difficulty on one california mine.
Last week, they had to turn back and not get to their terminal
destination.
On one occasion, I had to wait 15 minutes for the bus that was turned back.
On the second occasion, I asked
the driver why the bus had to be turned back.
She has replied, "because my supervisor told me to." I was not given a full explanation.
I would like an explanation why these buses are being turned back.
I want an explanation as to why these buses get bunched up.
Sometimes there are three or four buses that are bunched
together, and this has been happening for the last six months.
Also, there is the number of the
signs with the destination and the arrival of buses.
Sometimes, I will see a sign
that the bus is going to come 45
to 60 minutes from now, and the
bus is going to, a lot sooner, and actually, I got furious about two things.
now, I realize that there is no free lunch.
I hate to be in the lunch.
-- being the lunch.
And secondly, you are here to
serve the people and not serve yourself. These are my complaints, and i
hope that the motto of muni is
not "every rider left behind."
Chairman Nolan: thank you.
Secretary boomer: [Reading names]
>> I am a community organizer at a center.
There is a group of high school leaders that have been working on this issue for about one
year, 1.5 years, and I am also here to urge that this matter be
brought to a vote as soon as possible, that it be placed on
notice and that we can have a
vote on March 20 so we can move this forward.
i just wanted to echo that.
When we came to you guys, one of the things that came out was this idea that they' re going to
be more youths on the buses and
that there needed to be
education, so I along with the school district have been meeting with the coalition of
folks, the bicycle coalition,
jamestown, power, school
district officials, as well as the mayor' s youth commission and other groups to have been meeting to figure out what it
will mean to roll out an educational campaign along with the free muni for youth.
We met twice at the school
district, which -- once with one group. We were trying to address where
there was rider safety,
a res
ponsible muni rider, where we
create long-term muni riders.
Starting next year, you are
going to see a rise in youths getting to school.
what that means and how they are going to address and deal with
the issues of more youths being
on the buses and being on muni. To get this done. Thank you.
Chairman Nolan: thank you.
David.
[Reading names]
>> I tried to be addressed today.
First, on the operating
structural deficit, it did not
take public comment, so I am providing it to you now.
One was expenditure reductions
with a note that these had been when contract negotiations.
I am not sure that that is the
case, that $30 million in expenditure reductions have been achieved in that way.
If that is true, I think it would be good to detail those
savings and to tell that story,
because I think people here, --
hear frequently that there is a structural imbalance and that we need to fix it.
We need to talk about that more. Really tell that.
the other thing I am finding
really in congress --
incongruent is that we and
actually increase servant --
service on several lines, the n
judah, the 14.
There May be others.
It seems inconsistent to me on the one hand to say the we need
more revenue to continue our baseline when we are adding service that furthers that
deficit, so I am not going to
talk about the youth pass issued today, but I think we need to
reconcile eight the story if we need more revenue, but at the
same time, we are taking this policy actions that tend to make things worse.
Chairman Nolan: thank you. Next speaker.
secretary boomer: [Reading names]
>> barry.
Blondest hardest -- good afternoon.
Not a happy valentine' s day.
it was not a love affair on valentine' s day with the taxi industry. We get this proposal.
The town hall meetings went
well, but the attendance was
horrible, which segues into another issue.
First, chris hayashi did a great report on the busting of the illegal taxicabs and limousines,
and I think you should look at the video that was on the television station channel 5. I can send you the link if you give me your email address. It is a great story. She did a great job.
In terms of letting people know
about these town hall meetings, it has been horrible. Horrible.
I am sorry to say it so loud, but how can people attend if you
do not do widespread posting, at the airport, insisted that it is
posted at the cab companies, it did the emails out. Please schedule another town hall meeting in the future before this goes before you, or you are wasting everyone' s time,
or you will be having hundreds
of cabdrivers here on the 6th or
the 20th.
Do you want to that?
The other thing is, why are you
still looking at this under this category?
You are still looking at this as money generated. Chris hayashi'
s staff, you are making it difficult. Your website still stings in terms of taxicab information.
I am sorry.
give us a hand and made -- make
chris hayashi directly under
director r eiskin.
Chairman Nolan: thank you.
Secretary boomer: [Reading names]
Chairman Nolan: good afternoon.
>> hello, I am -- as you look at reforms coming up here shortly,
there is no way you are going to
be avoiding a lot of drivers and stakeholders here.
I want to remind you folks about what the key for the industry has been.
I purchased desoto cab company last year.
I had a very I opening experience in san francisco, and I want to highlight some things
that I think are seriously accepted as problems in the industry as you try to address them in the weeks and months.
first, there is not enough taxis
in san francisco, and the taxis
that we are using, more than
half of the 1500 plus taxicab' s we have are not picking up any
neighborhood calls, paratransit, disabled communities, some of those we currently have in service, less than half are actually serving the neighborhoods and the public.
The rest are at the airport and taking -- that is one of the serious problems we have in terms of availability.
Second, there is no
accountability in taxi drivers and taxi companies.
In other words, there is an all- time high of taxi drivers to do
not even have a taxi driver' s license. They are leasing from another driver or from a cab company, and this is a serious problem.
Number three, brokers.
These are individuals and not
cap companies, not tax medallion holders that have gotten in the industry and are operating the medallions for a cab company, or a medallion holder, and they have taken over the industry.
They are exploiting taxi
drivers, putting unlicensed drivers beyond -- behind the
wheel, forcing them to drive
beyond the times, and I am
sorry, I thought I had more time, and I will leave it at that.
Hopefully, I can speak with you again soon.
chairman nolan: thank you. Next speaker.
Secretary boomer: [Reading names]
>> I am -- a huge organizer from chinatown. The kids have to commute up to sunset.
their lifelong situation of
being muni riders.
Talking about the proposal, I
think it goes undisputed that the youth are passionate about
this issue, but it is something needed, not just something they are passionate and excited about.
We are healing -- hearing about how families have to piece things together.
To hop on the bus,
and last
week, we had a valentine' s day action. I see you guys got the valentines.
We are urging you to make the
vote happen soon but to also
calendar it during an after- school time in March so that
they can put faces behind those valentine' s and start talking about how we can make this happen. Thank you.
chairman nolan: thank you. Next speaker.
Secretary boomer: [Reading names]
And these are the last two speaker cards that we have.
>> I have been working for about five years here, but this is by
far the most sophisticated and
well thought out effort, advocacy campaign that I have
been around in san francisco and with other work around the country. Folks had a proposal.
They were tasked, and I think they have done it at the city
level, the county level, with a
degree of sophistication, learning what funding pots are available and going out to advocate for those and working really well with the city family, so I want to give everyone an acknowledgement on
that, but unless we go forward soon, I think we risk the
momentum we have built up.
Also, building a movement, a broad enough base movement that will support this agency in the
future for the funds we know
that are necessary, but we need the folks who are transit dependent to be on board for any
kind of future measure that is
going to require for them to look deeper.
It is really important to do steps to build a movement going forward.
Those who have the fun of going
-- the fun of going to
washington, D.C., this is a disaster.
This conversation has a really pernicious effect in terms of what public agencies can do.
Aside from delivering concrete
benefits in san francisco,
building a base of future muni writers, this has the potential
to push back on the notion that public agencies in difficult
times can do things to make things better.
We can do what austerity and plug the holes that are the worst. This is an opportunity to do something positive to really change the way I think folks
feel about muni and to deliver concrete benefits.
We look forward to working with you. Thank you.
Chairman Nolan: thank you. Next speaker.
Secretary boomer: our last speaker.
[Reading name]
>> the situation here has been getting worse and worse.
I have been away intention.
What has been going on, Mr. Ford, he arranged from town hall
meetings, and they came in big
numbers, and whenever they
explained, none of them they want to employment. what they did is brought people,
and a lot of the people are fake, who do not represent the industry.
The electronic waybill and blah,
blah, blah.
day, I am delivering a message.
The protests will be right in
front of city hall, and they are big. In these town hall meetings from
a few weeks ago, they were called names by the taxi drivers.
Even somebody had been sent an
email, and I sent a copy one
time to Mr. Reiskin.
"you are a piece
of [Beep]"
we are ready to talk, but I do not have time here.
five minutes. To solve that issue.
They said, ok, let' s do it online.
The person, the medallion
holder, and he is holding a card
for 18 months, you do not get it for 18 months.
Before that, we used to come to city hall.
There is a lot of trouble.
I amthank you for having the meeting.
>> anyone else?
Seeing no one.
>> moving on to your consent calendar.
>> the item was considered separately. We received the item in a request.
Items 10.4 and 10.5 are to be severed.
>> the consent calendar, as it remains?
10.1 through 10.3, right?
>> motion to approve. >> seconded. >> those in favor? >> aye.
>> 10.4, the transportation code to increase the penalty of the
amount of traffic for riding bicycles on sidewalks.
--
3 02 and 3 03, to increase the penalty amount for obstructing traffic, double parking, and riding bicycles on sidewalks.
>> good afternoon.
My name is barry toronto.
i understand that you are raising their rates, the fines
to be in line with other finds.
And however, the question, as
jerry lee had mentioned, why continue to raise these if there is no enforcement?
It is important to look at, for
example, yesterday was a holiday
and the only enforcement were
the meters.
I think it is important to find
out how many meter tickets they give out yesterday. Many people were surprised.
Holiday, a parking enforcement.
Parking at the meter, others found out that they got a ticket.
So, there is some very poor information out there.
Letters from the editor asked about this, I am sure.
The question is, how much do we break this the rates?
-- do we raise the rates?
is it a problem, with the other finds, that we need to raise the
rates to continue deterrents? I agree that parking is a problem.
Would you rather have them focusing on the meters, rather than double parking?
I think -- I would like to find out the deployment numbers.
How many people do you have
today versus yesterday, sunday, or saturday.
If you do not hire more pco'
s to
handle these issues or focus on certain violations more than
others, I think it is useless to raise fines.
First, we need to review publicly the number of
violations given now for these types of issues.
It is more lucrative to give a
double parking violation.
>> motion to approve. >> is there a second?
On the topic itself, I strongly support this.
It particularly bothers me about bicycles on sidewalks.
after all of the efforts that
this board has made to improve
bicycle safety around town, it is unconscionable.
I hope that a strong message
goes out .
>> I will just remind the board, and the public, that it was referred back at the last meeting.
We had more presentation about
the number of citations on the number of pcl' s.
-- pco' s.
We brought it back to the board.
>> I want to second my support
for this locally, as well as half
through my vote.
I respect the bus benching and feel the effects of double parking when we get stuck behind them.
I hope that when we talk about educating the public in whenever
campaign we go forward with, we
talk about the secret picture of
how these projects, campaigns,
policies, are not just moneymaking policies.
An actual effort to make the overall system better. I appreciate that that is what comes.
>> I think that the important
thing on this is -- I am hoping
that it really has the effect of
changing behavior, changing the behavior of the people that double park.
Unless it does that, unless it
is effective, but just to raise
the parking fines for you
without enforcement, I think that I' d like to see enough pco'
s and officers out there to
enforce double parking -- no double parking.
That creates a change in
behavior of the people who double park.
I see it every single day.
We get stuck behind people who double park.
we are not powerless to do something about it.
I think that we need to find the resources to get enforcement done.
>> we have a motion and a second. All of those in favor? >> aye.
>> all of those opposed?
it is approved. 10.5.
>> 10.5, division to of the transportation code to set standards for advertising and
other displays on the interior
and an exterior of taxicabs, and requiring that the dispatch number for the vehicle displayed on the exterior of the taxicab.
you have a number of members of
the public waiting to speak with you. >> that afternoon.
>> good afternoon, directors. My name is charles.
I am here on behalf of the luxury cab company.
i have an , that this revenue helps us to defray some of the cost.
[Tone]
>> thank you.
>> [ reads names]
>> thank you.
This time I am just speaking on behalf of green cab.
We have over 50 drivers that are members and part owners of the
company in san francisco , running on cooperative principles. Although there is another company that uses cooperative in its name.
>> I wanted to propose
amendments -- I wanted to
propose amendments to section 1c8.
the number that is associated
with -- with the side of the cabinet.
Our green cab number is on the side.
An easy one for the public to remember.
The dispatch service that we
subscribe to, the calls are put out to all of the citywide
drivers.
Likewise, they are put out to all of our drivers. From the public'
s standpoint, it
is steam -- seamless, but it is really important to us to have
our own phone number.
This number is widely used in
the account for 25% of the calls that come in a citywide.
Even though we only have 10% of the cab service.
If you had ever sat through one
of our interview process is, you would understand why.
We need to have our own phone number for our own identity purposes.
Yet that number will still be dispatched number. We are asking for a change in
the language for the phone number to call the dispatch service.
we have discussed this, Mr. Jarvis is in agreement. [Tone]
>> [Leads names]
-- reads names]
>> good afternoon, again.
i appreciate staffed bringing this forward.
I think that the lack of company
managers appearing before you May be saying volumes about
this, unless you receive the
documentation war correspondents from the managers.
I, myself, when they first introduced this to the taxi
commission years ago, I was not
totally in favor, as it made it
difficult for them to recognize the taxicab.
I think that it is important for the company, that the person
calling, that they can recognize
it is the cab that they actually
called, so that there is not a confusion, because the person was not left there as they did
not recognize it as being that persons cab.
However, there are two items that are confusing in the staff report.
It is a huge revenue impact.
Lots of money, thousands of dollars collected over the years from the fact that the
advertising company took a certain amount to a rapt fund.
It is important to know how much has been collected up until this point. Where is the money.
And what do we do with the money? Where is it?
there May be documents that say this, but you do not have those
documents in front of you.
As a result, we do not have those numbers in a crevasse.
I think that it is important to
know that without a direct
benefit to the driver is by having this section wrapped, there might be an indirect benefits.
It was not readily apparent or
transparent.
It is important that this
information is included in the program. I appreciate your time. [Tone]
>> mice to see you. >> that afternoon, directors.
One of the lines on this issue
is inside and outside on the ad display.
Installing into the back seat
terminals,
the cab company and companies were doing it, the
offering cab companies 150 per
month, 1800 per year, to run the ads on their terminals.
The question of this line is inserted in the whole story.
this is the door to open for the back seat revenues.
In this case, I would say that
this matter be prepared and make a proper plan for it.
this way the drivers know, the
companies know, no one speaks in to the situation.
We are wasting time on this
instead of using the time to serve the public.
You might think -- why?
No one is paying attention.
i drive a cab and the 40% of the time. Where are the cars?
I can show you my records. How many days of the week.
Why am I 40% empty?
Very simple question.
the day that the muni was down,
I requested yellow on the phone many times. But the message was that we
needed cabs in that part of the city. Several times by several drivers, no one put it down.
So, please, there are serious issues. This batch is a very big issue that we need to sign first. Thank you.
>> on the point that was made, can someone elaborate that for a little bet for us?
>>
there were a few issues.
the second was the phone number
issue, then the revenue, and the
last point was inside the change to advertising and the inside.
>> good afternoon, commissioners.
first, the simpler issue, as
stated, I did agree.
He brought that in front of me.
He made changes that would amend that section.
The telephone number for calling this bad services.
it was not clear to Mr. Gruber, that his current number, would
fall under the dispatch service definition.
The number that he has worked hard for a few days ago.
It was not the intent of the legislation.
>> the legislation -- the language used tear would be in the form of an amendment that the board had chosen? >> correct.
>> and that is the board recommendation? >> correct. >> one thing in a time.
The worry over this as an
amendment? >> a motion to approve.
>> any discussing and in favor? >> aye.
Let' s ok. Next item.
>> the other issue that you asked about was the driver fund
or the wrap fund.
the mta does not obtain revenue to the advertisement. The money is put into a driver
found, which is for the drivers.
Currently, there is about $80,000 approximately through the driver fund.
When it is done, the company
will pay approximately $170,000
per vehicle for the advertising for a certain amount of time. .
That is where that money is, what it is about.
When the storm -- we will hear
about it but Mr. Michael harris
gives his information on medallion sales.
>> members of the board, questions or comments? If not, thank you.
On the amended recommendation, is there a motion? >> second.
>> a motion to approve the recommendation as amended.
Any further discussion? Those in favor of democratsay.E
-- those in favor? >> aye.
>> thank you.
In the public comment period,
asking about the sales area, touching the comments in the
program, I was hoping we could hear more about that at some point.
If there was anything we could
do to enhance pedestrian safety and vehicle driver training.
That is right. We can meet with the staff.
in the new stations, is that something we can hear about at some point?
>> I will discuss this with the project team before you report back.
Blacks item number 11 on your regular calendar is a
presentation regarding fiscal
year 2013 and 2014 capital operating budgets. >> ok. >> we will do this together.
We have two different presentations to walk you through.
One is on the operating budget. One is on the capital budget.
this is really just an update for you.
We will be having our first public hearing here at the next
meeting, wind up the votes to take place.
This is just to give you an
update of where we are compared to when we last presented the budget to you at the November workshop.
I think that we will start with operating budget.
Those are going to help to drive the power point and answer the difficult questions.
I will walk through an answer them.
so, first we want to start with
just a review of what we presented previously.
As we work to get this up, we will walk through our preliminary budget.
What we have changed, what has
changed in the overall picture,
what changes have been made on the expenditure side.
Just review, again, the revenue options that are out there.
Then, with the timeline, we will
move to the capital budget. Starting with the revenue
texture
, from slide 3 up, $786 million.
As presented in November, I had
revenue projections going to 810-the following year.
Nothing there has changed.
we are still more or less still in the same place.
I know that the general fund
transfer line items remain unchanged. We got good news from the comptroller' s six months for it -- six month report.
the board budget analyst will be seeing that scene. It is likely that there will be
some modestly positive news in
terms of the general fund transfer.
Since we get a proportion of those, we get the benefit of that.
so, the next slide was the one
we saw the last time, which just
shows how we get from our current fiscal year 2012
projection to the increased numbers in 13 and 14.
The big drivers on the plus side
going for next year, and what we have previously anticipated from
the general fund, we expected to
see set a should -- be expected
to see citation revenues with a healthy base line revenue growth in the next couple of years.
on the expenditure side, a little bit of a different story.
We have been working hard since
we met in November to release see where we could whittle down
the baseline expenditures.
I emphasize the bat -- the word baseline.
As we discussed in the november
workshop, there is the baseline
situation in the overall structural situation.
To close the base line gap is really belittling away at
expenditures to deliver the same service that we are
delivering now, and the same quality of service within our
existing base line revenues.
With that, we have made some progress.
From the time of the workshop, we have reduced expenditures for
the next fiscal year by $2 million.
We will walk through what some
of those are.
walking through the proposals for consideration in the budget that we will be bringing forward.
Slide #six shows the major changes from the current fiscal
year projection of $820 million
in the budget going to next year and the following year.
again, most of this are things you have seen before.
A few things about point out.
On the salary benefits line , proposing management reductions
in the current fiscal year, and
the overtime reductions of the
second fiscal year, falling in
it -- falling in it -- following an increase in the next fiscal
year. I think we are chronically
under-budgeted over time. Why we do have some over-
spending over time, we will try to bring the budget up in the
spending down to what we think
is the right level of overtime
for the next fiscal year. Because of a number of initiatives that we are
overtaking, including the prop g
initiatives, they are expected to do better in terms of
bringing the overtime costs down. It is why I am proposing bringing the budget up in the
coming fiscal year, for them to
drop it back down by half in the following fiscal year.
These are pretty ambitious numbers, frankly.
We have been challenged to meet the overtime budgets in the past.
i think that it is a management challenge that we really need to
achieve in order to demonstrate that we can manage our budget well. I will point out in the
insurance claims and the other
payment mind, we have a good sized reduction there. Showing more detail in the
following slide, we are putting a lot of focus on workers'
comp,
which you approved earlier today in the consent calendar.
Managing the workers' comp
program, we are doing that now because of problems with our
current one, but because of the city' s contract with their 30 --
third-party administrator
joining together with the joint purchasing power of the city and
the mta.
But you have been running before
are completely separate workers' comp programs, which I do not think I gives you the best value.
Putting those together, I do not
think that we can reduce workers' comp costs. There are a number of things
where we are resetting, through
the fiscal 2011 actuals, the basic premise being that we are
able to live within these
spending amounts and they should
be more or less good enough for next year.
Those are the highlights.
>> in the work orders, this is the entire change on page 6 here.
>> this is what we understand at this point in time.
The work order budget, there are
some specific increases that we know of.
The public utilities commission
provides very little -- under- cost power to city departments and muni.
they are going to raise that up
by half in the coming year.
In the following year, they will
keep going, stepping up.
The head ceci --
hetchhetchi fund is running dry.
but will be in the proposed budget is what has been increased in the proposed year.
At $1.6 million impact on us incrementally each year. The balance of what is shown in
this line, the work orders that
we know about, there is the
department of human resources that will be a shift of costs currently paid by us through a
contract .
It is not a decrease in mta costs, it is just shifting to thethr.
we are contemplating funding the tax collector for additional
parking tax revenue collection
services that we think will
have a greater than 100% return
on investments.
Igbo rebound $1 back to us in the parking tax.
if in the department of emergency management, there is after hours dispatched for us that we had here to fore not been paying for.
We are working hard to hold the
line, if not increase what we see from other departments. However, the other departments
have not drifted into what they
are proposing in the budget,
which is a follow-through impact to us. City department budgets are due to the mayor' s office this week.
The system would get a sense of whether the baseline numbers
from the other departments will be changing significantly or not.
We have already started to engage conversations with the
other agency to identify ways that we can reduce costs.
Let' s from their perspective, they are likely looking at just the opposite?
>> true in some respects, but they have also been given a
budget cut target from the mayor
when he issued instructions from the department last fall.
Presumably, they are cutting their costs and we should get some closure benefit for us. We will see. It is something that we are
working very hard to hold the line at.
from the members of the board of
supervisors, no one wants to see these work orders increase.
>> it is important to note that
it was six years ago when it was over $80 million.
One of the dynamics of the
thing, are we actually getting the service that we are paying for?
We have certainly made progress in that area through these years.
>> yes, we have made progress.
We are not committing funds until the documentation is available.
>> we always get hit by that in the budget process.
For these numbers. >> agreed.
I am working with the city comptroller to do a deeper analysis on work orders.
The numbers that drive the work
order amounts, to make sure that
we are getting good value, that
we can explain, defend, or
modify if needed each line of the work orders.
>> go ahead.
>> the next slide, number seven,
provides detailed over something I have talked about.
Over what we have been able to
do so far, it is identify net
reduction as $32 million respectively in the next fiscal year. Our challenge will be working
forward and much simpler.
As I mentioned, the reduction of management facts will be
difficult, but necessary.
I mentioned some of the other
costs and payments, of which
really justre-
t re-
baselined the fiscal year 2013 baselines,
which we are using it as a guide. We are looking at ways to get
out of leased space and consolidate the existing building space.
You can see that there are other details here underneath of the lines.
Happy to quickly redirect them.
>> so, I guess I would say that
the good news is in terms of
closing the base line gap, we have been able to identify a
number of areas with potential expenditure reduction that we
would be poised to bring to you.
As I mentioned, in the November
workshop, closing the base line
with the balances the budget under the current service model
whereby, for example in muni,
you are not adequately funding maintenance. The cleaning of the cars, the
training and supervision of the operators would enable us to
close the gap and continue what I think is the inadequacy of the level at which we are funding
all of the supports that should
be making that frontline service
run well, dealing with budget
gaps and training issues.
We are about the breakdown for
the vehicles, funding for the vehicles. But I have mentioned in November
is what I did not want to do, a
budget that keeps us limping
along in the same way, limiting
-- kicking down the road the
decisions to fully address what
we need to in order to make the system worked well.
That issue impacts muni.
It is the same in terms of
parking and traffic operations,
where despite the opportunities to reduce expenditures in the
baseline, we are fundamentally
resources in the operations and, in my estimation although we
have been able to find all of the potential expenditure
reductions, which slide #eight
shows, our additions that I will
likely be proposing in the
budget, all of which we have not
found funding for -- basically,
what this will be doing is, in my mind, right sizing.
These are mostly have your
numbers for fiscal year 2012, --
these are mostly half of the
year numbers for fiscal 2012, 2013.
The basis of this is in muni support services.
Rail maintenance, bus maintenance.
The tracks, the signals, the electronics.
all of these through the Mr.
Haley staff analysis are provided close to the levels
that we would need to properly maintain and run the system.
This is not all of what did it
-- the division directors would say is needed.
this is what would say is a reasonable first caught.
The reason that the numbers are
lower in the first place is that
they are largely included with half years staffing.
>> the issue raised is an interesting one.
That the baseline seems to be
providing more service over the past year.
Is the baseline based on all of those things that we did last year?
Does that become the new baseline?
>> we have been funding those
service improvements basically threw open runs.
But we have, we are missing areas of service throughout the system.
We are capturing those savings
and putting them in the areas that you have mentioned.
M, x, 28, where the capacity and
demands were not able to carry otherwise.
" we are not contemplating in
this budget is a change in the service level.
This is really fully restores in the service level that we have today.
It does not presume significantly increased writer shipped from increased use writer ship.
It is really the baseline level
of service that is properly resource.
>> I assume that this is long term, correct?
>> we will get to that in the next couple of slides.
>> well, quickly.
>> what we have tried to present
to this task force is a basic
understanding of the baseline challenge and are structural challenge.
we have been keeping them up-to-
date on the expenditure side end
they have been focused on the
revenue side in terms of things
that we might want to include in
the budget that we bring forward to you in the coming fiscal year.
and, or, things that might be on
the ballot in subsequent years.
It is not all extremely long term.
You will see it in the next slide.
If you want to add this level of
support service into the system,
we will need some other revenues solutions.
i have been able to close the
base line gap, in theory, but
not with enough room to support these new programs.
Going to the next slide, the net
of where we end up is a 20
million gap next year, with a 33 million gap in the following year.
absent additional expenditures
solutions, which I do not expect
to be able to find it at those
orders of magnitude, we would
need revenue solutions in order
to close some of those gaps.
The numbers on the previous
slide, while not falling but the bird -- division directors
say is what they really need, it
is nonetheless an ambitious task, putting us kind of back
into the red in the expenditure cuts.
This is where it leads us.
The remaining slides are just
kind of reminders of what we
have previously reviewed in November. These were not things that we
are necessarily recommending. I have asked for your
authorization to convene this budget balancing panel.
We started that work in the beginning of January.
their final meeting, their next
meeting is when they are supposed to develop short-term
solutions, of which would be
ready, if not for the meeting
later that day, our next board
meeting, our April budget discussion.
and then they are going to meet
for another three sessions,
four sessions, to develop longer-term solutions.
We should get, for you, in the
next month or so, a more refined
list from this laundry list
based on what this panel is suggesting.
>> are these from the panel?
>> no, with the exception of passes, these are just issues that have been brought up in the
past and brought to you again.
Just to kind of remind you that
this is not the first time that we have all been thinking about what the potential revenue sources could be.
we do ask that you address some of the requests of the public speakers.
Because there are impacts to the huge their policy decision, it
is taking into account the larger context.
It is my recommendation that we
do include the decision about
the youth passed their into the budget process.
-- youth pass
fare into the budget process.
it is only a difference of one
or two meetings, in terms of timeline. And we would all like to get this resolved sooner rather than later.
I guess it does a disservice to consider it outside of the budget process.
We included it here to get a picture of the budget impacts.
these are just ideas that could be included in the budget.
Lax completely balanced.
Do you still come up with a 19.6 and 30.6?
will one of the considerations be a service reduction?
>> that would be an honest option for the board to put on
the table to the sitter.
Additional revenues, additional expenditure cuts outside of cutting service.
I think we have found tens of millions of those already.
it would be to continue doing what we have been doing,
maintaining the frontline
service without fully funding
the maintenance, car cleaning up, and supervision.
or, we write sized the service for the levels of stabbing a we have.
>> when we cut the service by
10% two years ago, how much money was involved?
>> $30 million.
>> 61%?
>> that gives us the range.
I think it is the best option to
have, without people
understanding this, as opposed to what.
I realize that I thought that that was a more honest way of doing it.
>> certainly, I do not want to
be the one to start in a new job in immediately recommend that
the board cut services.
But I do want to bring forward an honest budget. If the resources that we have
available are not responsible
things to bring forward, options accordingly.
>> you mentioned these things in
your letter, about the issues in the other things.
Other virtue options that are left.
>> can I just clarify the numbers we' re seeing on page nine?
The $19 million gap, the $33
million gap, they do not include
the possible new revenue sources. >> that is correct.
all that they assume is the
indexing that is shown on slide 12.
>> all the things that you noted have been brought to the board before, but are now in front of
us again.
They exist in order to close the gap?
>> based on the March 6 public hearing in town hall meetings that I will make reference to later, based on input from this
panel that I have convened, we
will put that all together.
We have proposed a series of
things that would provide for a
balanced budgets at this level of funding.
>> in congress, the house
proposal is a devastating one.
That would not have an impact on
the coming year, would it?
>> not so much an impact on the operating budget.
this is the capital budget we will be getting to in a minute.
>> also, the numbers on page 9,
that we can impact with the
additional revenue sources on
page 10 and page 11, they still
do not really get to the numbers on page 8, the new program.
>>
are the numbers included in slide 9? >> they are. >> thank you.
>> to be clear, slide 9 basically captures what we have
already been able to identify as potential expenditure
reductions, adding in the raid advisory on the expenditure side.
This is a worst-case gap, if we
were to fund everything that we wanted on page 8.
Which is not as much as we would
like to, but it is a reasonable and significant step.
10 and 11 have some of the old ideas. One thing that I should point
out that we have added arm slide
11, the last line, eliminating the free employees transit
passes, except for those for
whom we have a contractual obligation to provide them.
It is not a lot of money and,
obviously, a very unpopular proposal to put forth.
As we listen to public comment
about the difficulty of affording transit, it is
difficult for me to defend why people who are gainfully
employed, with good jobs, should
not be paying their fair share.
>> the total democrats have of a million dollars.
>> this is employees and family? >> everybody.
>> this would only apply to the employees for whom we are not contractually obligated to
provide passes.
That is the biggest chunk right now.
but it is also an estimate of
how many used revenues they would get when they switch from a free pass.
>> do you know how many people take advantage of this, roughly?
>> our estimate is that those
employees that do not have this
bargaining agreement, 25% of purchase passes.
>> how many are actually using it now?
>> everyone gets a free pass. >> the users?
>> everyone uses that. The use it daily.
>> thank you. Ok.
>> #12 just shows the indexing that is largely seen before.
You can see that there will be
transit fare increases, according to the board indexing policy.
Not a single fares, but the way the policy rounding works.
The regular adult fast passage
of go from 62 to 64, then 66.
The discounted one, a unit and
senior, would go from 21 to 23.
This is the indexing policy .
Slide 13 shows some of those
potential revenue solutions and,
therefore, would be available to us at the earliest if they were
on the ballot and approved in November for the second half of the first fiscal year. It would be difficult to budget
for at, as we have no idea if we will get approved.
This is a sample of what the panel is currently considering for the long term.
Finally, the operating budget,
as I mentioned, it will be
coming at the next meeting for
the first public hearing and
budget presentation .
We will use the next meeting for
that opportunity.
We do have a number of town hall
meetings currently set up.
We will put it on our website,
if it -- if it is not there already.
I believe that I mentioned it in
my last report, we want to try
to take an opportunity to
solicit fraud to educate on the state of the budget and get some feedback on the budget.
In addition to this panel that
we get from public comment at
these hearings, in this room, we
have will have a nap -- we will have an opportunity to hear more
from the people of san francisco.
Of course, all meeting locations will be accessible and served by
muni.
The board is -- we will make
sure they have all the time my information.
so, then we will be coming to
you in April to approve the budget.
Or if you need more time in the
middle of April.
Getting to city hall on May 1. I wanted to pause for any
additional questions on the operating budget. >> members of the board?
>> thank you very much.
>> very comprehensive.
Let a lot of good staff work on all of this.
Moving quickly on to the capital budget.
Is this one of those things where we have to have public comment?
>> quickly, to give you an
overview of the capital budget,
you had already approved the
20-year capital plan, unconstrained. Where we are for the next step
forward is the five-year capital
improvement program, constrained, meaning that we have to balance the programs
that we put forthwith the revenues available.
From that five-year picture, we
get to our two year budget, which will come to you along with the operating budget in April.
In terms of sources, this is
where you will see the potential impact from the activity happening right now in
washington, D.C., on us.
We are fairly heavily reliant on federal formula funds, for
example, for much of our transit capital improvements.
If that were to significantly
change, some of those proposals seem to be leaning towards the
back, moving forward to maintain what we have.
You will see that there are a
number of other local state and
funding sources for the proposed city obligation bond.
passed by the voters this past
November, legislating a small portion of which, coming to the
mta, the mta has not generally
been a significant center --
player in the geobond table.
The mta has been seen as independent in its need to generate its own capital improvement money.
This idea actually came from the
budget balancing panel.
That we should consider the
voters at large as a possible avenue for capital revenue for
program where we have a clear investment that we can
articulate in terms of service improvement. We have built in an assumption
of this and have not yet begun to take it through the city process to get it into the capital plan. It is an idea that is worth pursuing.
We are putting it into the five- year plan. The other thing that you will
see on the slide are the revenue bonds that you had previously approved.
so that those lines make for new revenue items.
New revenue items for our capital plan.
Moving to the next slide , we
were kind of walking you through a bill but a change. From projections that we previously showed you on a five-
year side, showing kind of what it works out to on the to your
side, -- two years side.
Things seem to get dwarfed by the central subway, but when you
take it out, jumping to the next
slide began point out the differences from what we had shared you previously.
Because of the way the regional
formula funding works, we have
quite a bit less dollars coming in.
More than we had previously anticipated.
We had been working at
restructuring our plan and
procurement so that we could celebrate purchases.
All to me, we will not be
constrained by the amount of federal money flowing through the region.
The other changes, the traffic signal line that has gone up in
part because of the bond from last year, the other big
changes are the inclusion of
the $150 million proposed bond that we should be ready to implement upon the completion of the eir.
It was the summer of 2013.
so, those are the major changes. Moving forward, we have
developed capital investment in debts.
-- index .
This is reflected in the
unrestrained plan, showing the
allocation of resources across the programs to bring ourselves fully into a state of good repair.
So, the 20-year plan, because of the unconstrained numbers, they
show what the allocation could be.
But we have done now is overlay
the five-year picture, so that you can see proportionally who
the winners and losers are as we start to put the constraints of the reality of revenue on to the program.
That is shown in slide 7.
What you will see on the far
right column, those items that have a negative are in parentheses and in red.
The ones that have a lower percentage of the portfolio
based on the revenue available, more than what we think we
actually need, based on the 20-
year plan, it is based on the revenues available.
they will do a little bit better
as a percentage of total
available and based on what the
total needs are.
It is important to note that we May end up with a higher percentage of the revenue coming
in and what it needs as a result of the overall portfolio.
As opposed to 21% of the overall capital need.
We still will not have the
revenues that we need in that one line item.
This just shows the impact of putting our constraints and how it changes the distribution of the revenues that we would have
to address, agency-wide, capital needs.
You will see that the bottom- line revenues are significantly
last them of what our plan says that we need and what is happening in washington that can
completely exacerbate those proposals to move forward.
so, because we have greater needs and revenues to support
them, slide in priorities.
If that I believe were previously approved by the board.
these are basically the filters to ultimately come up with a
five-year and two-year capital plan is that we will be bringing
to you for approval, so we are taking each one of the projects
that are submitted, and each one
of the program line items, running them through the filter,
and through that process, we
will prioritize to get down to a
two-year budget and a five-year-
budget that is balanced, so
slide 9 then shows the shortfall
that we have to close in terms of the needs relative to the
revenues.
We have gone through one level
of prioritization to get the $2.7 billion need down to just a little over $2 billion, but
because we only have $1.98 billion in revenues, we still
have some gap to close, off -- so we will continue to put projects on that screen that we
can bring to you in April a balanced budget.
We are also looking at existing
projects that have balances, and
considering whether or not we
need to complete those projects
or bring some of those balances forward to address some of these
needs, and we are doing that cleanup now, and we will be bringing to you a balanced capital budget proposal along with the operating budget in April.
So that is our update on where we are with the operating and capital budgets with a lot coming in the next few months.
chairman nolan: ms, members of
the board, any comments? Any members of the public?
Secretary boomer: david pilpell.
>> there is a lot of information here, so let me be
quick, and maybe I will ask a question at the end.
These require a little more detailed explanation, at least to the public.
The $2 million in management reductions, not clear what that
is, the determination of the
leases was not clear what and
where the operating impacts would be.
I want
to be clear, on page 11
of the operating hand out, that charging for transfers I think it' s a bad idea.
similarly,
charging for the clipper, that is bad.
There could be a discount for
multiple rides on the clipper,
similar to tokens, so if
somebody wants to load $40 worth
of cash, I would give them more than 20 rides so there is an
incentive to use multiple rides
using clipper, tokens, but I
would not charge more overtly
for a cash there unless we are
increasing cash fares generally,
and we have had some discussions about ratios between the cash fares and the ratios.
on slide 12, the automatic
indexing, one of the boxes, the
13-dollar fare, I believe
sometimes in the past we were
told that it cannot exceed twice or anything else on the system,
which is cable cars, and the staff May want to look at that.
I look forward for more detail
on the operating budget so I can comment more use only on that. If I can have a moment on the
capital budget, it is only a few dollars billion.
there are 16 program categories here, but this does not list
specific projects , those things that are at or below the line and at risk of not being funded,
that when help understand how
the prioritization plays out, and I have always believed that those projects that save operating and maintenance costs
should be the highest priority, and those that expand the system
or increase operating costs
should be correspondingly a lower priority. It appears that that is
calculated in here, and I
certainly see director reiskin' s
philosophy about breaking down crotchets explained very well
here, so I look forward to more
detail, and a look forward to the budget deliberations before this board.
Chairman Nolan: thank you.
Secretary boomer: mark grueber.
>> mark
grueber.
this was a date that we were
told that we would have discussion of the tax proposals,
which you May have an idea now
that are very controversial, and
I would really hate to see us stopped at the end of a long
meeting, which will then be a very long meeting, and try to
get your attention devoted to
this other issue when you are probably at wit' s end already.
I would say to push this whole thing back to May. There is no need for you to be discussing these tax changes now.
There is another round of the medallion sales that is just
about to get underway, and that
will be the thing that is going to provide your revenues going
forward at this point, so give
us the opportunity to have our issues discussed in an atmosphere where they May make a difference.
secondly, and this is totally
unorthodox, and probably any political consultant will tell
you it is a harebrained scheme beyond any possibility of
passage, but I see you have five revenue solutions in terms of ballot measures, and my thought
was, why not put all of these before the public at once and
say, "take your choice"?
It is very hard to get a tax
measure passed, and if you say
to the public, "we have to have a solution.
You take your pick ." and those that do not get enough votes fall by the wayside.
Only the one that got the highest number of votes would pass.
They would be receptive to that. Just an idea.
Chairman Nolan: interesting thought. There is a conversation going on around the budget proposal.
It is one better than three or four, so interesting.
Mayor brown weighed in on this. Anyone else on this one?
Secretary boomer: there is no one else.
Chairman Nolan: an action item.
How long do you anticipate the closed session?
10 minutes? We have a request for the break.
Secretary boomer:
item number 12, a discussion and vote to go to closed session.
chairman nolan: all in favor? All right, we will be back at 20 after.
secretary boomer: the directors
went into closed session, and I never drove in the discussion to vote to disclose or not to disclose the closed session.
Chairman Nolan: motion to disclose? Not to disclose.
secretary boomer: and as you noted, at today' s meeting will
