what we say we are going to build, so over the next month, we will come back to you to approve the various components men made up to the ultimate approval of the budget. just to give you some background, when we are looking at the project and 20 years ahead, this was a state of good repair. the state of good repair also ties into reliability and to safety and helping to keep out costs. so it is a fairly large buckets, and then there were other categories for security and the end enhancements and expansion. i will talk about that. in summary, the project itself

has a 183 actual projects. in total, we and somewhere in the order of 1000 projects that the agency is agreeing to do. it will be really busy. we have a lot of things to do. the capital needs bimotor, when you look at it from a motor oil perspective, -- the capital needs by mode, when you look at it from day -- a modal perspective, we have basically done a rough order of magnitude analysis and found we need about $24 billion to meet our capital program needs between now and 2030. obviously, this is a wish list.

after the process, we have to figure out what we have. and the idea is to look at strategically expand in the corridors that we need to. we also will be experiencing a latent demand. also, there will be an impact on capacity. and this one we have done more in detail because of the relationship and of the projects we have been working on. the majority of our work is really making sure our actual transit fleet system is working to the best that they can. we also have a need for the

other facility components, including parking and traffic, but beat primary is the system. -- but the primary is the system. this is very important to us, so we are working closely with state and regional and other partners to make sure that this does not impinge on what we have. and then there is the central subway. there are other corridors that we're working on. doing better that we have, they will be instrumental, focusing on the networks there are the

projects we have been talking about. and that is in a nutshell. we are looking to complete and there are the funding opportunities that we expect to see, and then to get this ready for the two-year budget. i gave you a very high-level presentation, and i would be happy to answer any questions. i would be remiss not to introduce the people have been instrumental in gathering the information. it is quite a challenge so i want to thank them. chairman nolan: thank you.

this is the easy part here. we do not have to worry about money. >> that is right. chairmon nolan -- chairman nolan: thank you. any members of the public? secretary boomer: no. chairman nolan: any further discussion? all in favor, say aye. next item. secretary boomer: item i4. >> i am with the affairs. with us is the advocacy program, which we use as a free market for our advocacy at all levels, including federal, in the coming years. a lot of this is assuming in predicting what is going to

happen. we cannot necessarily anticipate every issue, so this is a free- market that happens us -- that helps us to beat able. we do not do this in a vacuum, ever. we work closely with the entire cities family and the board of supervisors, our colleagues at the county transportation authority, and then on up. i think you will see in this program a new component involving regional advocacy. and we also work closely with our congressional delegation as part of the city family. in terms of local legislative priorities, i think a lot of this will unfold in the coming year, and this will keep them apprised with all of the activities.

we will make sure that this is oriented to the activities of the sfmta. these are general priorities, typical priorities. and it is a very busy front. we are constantly taking items to the board of supervisors for approval, and the executive team is very involved in that, as well. so the items that are listed here are most what would be familiar to you. any activity associated with the subway, sf park, and things at the local level. i think what we decided this year was to look at the work that the regional effort entails. i know some of you have anticipated at that level other capacities, but i think it is

important to realize the coordination that goes on. we have two representatives from the city, and we are working closely with them as well as the mayor's office and the board and our staff to make sure that our interests are represented at that level. the issues that come up at this level are high-speed rail, called tran's -- caltrans and the future of this as well as an advocacy for programs that will come up at the regional level. also, as tim mentioned, there is the regional sustainable communities strategy. that is something that drives all of the way down to me -- to the cip level. this is relative to san francisco's interest, said these the kinds of things he decided to include in the program this year as well as bicycle and advocacy. how can we do more in the interests of san francisco as it

relates to the priorities of the region going forward. this is the second year of the session, which is dominated fundamentally by the state's budget situation. i think we will not see a different tenor this year. i think our position will be primarily one of defense. as you know, included in your program last year was the authorization that we deal with the camera program. this was an active, so we will consider that our victory in the session, but as director reiskin mentioned, we are able to make the case that state bond issues are important for some of the issues we have, including the central subway. the money is proposition one a and 1 d. we were successful this year,

but the drum beat has to continue for san francisco to stay in the race. there are a number of statewide issues. we will see how far they get this year, but ceqa reform, there is statewide discussion about potential reform, whether it is thresholds for small-scale projects to do these or other forms of sea " reform which might be of interest -- and other forms of ceqa reform. there is a powerful funding agreement, which we hope is imminent, that we do not take anything for granted, and we hopefully will be getting good news from the government said on the agreement for that central subway project. the other big policy issue will

be transportation reauthorization. there is the current federal law that has been extended nine times now. the last extension takes us through march of 2012, and in an election year, i think it is going to be hard for the administration and congress to come up with new funding mechanisms that will allow for the level of investment that interests are expressing the need for, and so we will watch that. we will be involved in that. we do have a direct stake in the program, but that is the other sort of situation that we see at the federal level, so that is a quick overview on the program, and i am happy to answer any questions that you may have. chairman nolan: thank you. we had intended that they would be a presentation on caltrans -- caltrain, but we decided to

postpone that, and that will be back. thank you. director heinicke? director heinicke: this report was very well done. thank you. there is the vehicle license issue, which i do not see in this, and i want to know whether you feel you do not have enough direction, whether the senator and others are not pushing the issue, but this is something that is noticeably absent, and i wanted to see if that was purposeful. >> not so purposeful other than it has been vetoed four times in a row. i do not have any signal yet from senator leno. he has been staunch. he has been a defender of the concept of a local option, and

if it would be helpful, we could certainly include that. director heinicke: it is not going to be pursued, then it is not worth your effort. chairman nolan: thank you. secretay boomer: yes, mr. chairman, you do have a member of the public to wishes to address you. >> i am bob. i wanted to suggest that some of the remarks that i made earlier seem not to have been addressed. there also needs to be sometimes a defensive look at some actions, the negative legislation that the state legislature can put forward, so in the past two years, there have been successful veto measures.

they would have made injury is more likely. it did not come before the state legislation committee. i met with the mayor in april, and he mentioned possibly having a city lobbyist work on this. nothing happened. there were things that were negative that were passed, and i and various other groups were passed to get it vetoed, but you cannot count on us individually to do your work. watch out for the weasel actions. especially ab909. it started out as an educational measure, and then for process, it became a traffic fine a lessening measure. so it may not show up on an initial screen, but someone needs to carefully monitor all of this stuff to find out the factors that come in. that is what is missing here, the negative, the harm that can come from measures that can

affect a red light cameras enforcement and levels that can deter dangerous driving. it is too late to amend it, maybe staff can give directions in an appropriate way to watch out for this that we do not have a third veto fight next year. chairman nolan: ok, members of the board, we have a resolution before us. director bridges: i move. chairman nolan: drvonfr -- seconded by director oka. ok. next item. secretay boomer: item 15, the clipper card.

chairman nolan: good afternoon. >> i am with the sfmta finance division, and i am here to update you on the clipper card program. the commission began the development of a payments system, regularly named translink and most recently changed to "clipper." this requires coordination between transit operators. it is also intended to streamline customer payments and transfers between agencies. this will review the implementation, the regional and

local level, as well as the performance of the new clipper integrated fair -- fare gate, and we will also touch on next steps for the program. but transitions across all participating agencies, as well as the estimated percentage of passenger boarding that are currently using clipper as the payment. this is as of 2011. sfmta met its transition calls with our monthly pass customers. major transition for bart and another occurred just a few days ago on december 31, and they are expected to complete their milestones by the end of june. at that time, all eight of the participating agencies will have met the deadline.

this next graph demonstrates the tremendous growth in the we did boardings related to clipper. they have increased by more than 50%, from to under 93,000 in december 2010 to 572,000 in november of this year. you will note in the red that muni makes up the largest percentage of those transactions with about 50% across the region. it also represents 45% of transactions on muni each day. to insure a successful transition, over the last year, the agency implemented a comprehensive campaign. we distributed more than 70,000 adult cards, process to senior card applications, and conducted more than 180 community meetings across the city for various customers. between november 2010 and september 2011, 120,000 monthly

pass customers where transitions. we were able -- a limited number of senior and young customers that utilize these passes, one- time use, three nonprofit in social service agencies. we also implemented new hand- held card readers, which allows cable car operators to actually deduct e-cash from the clipper cards. in conjunction with the implementation, we were also able to leverage the additional existing infrastructure.

these tickets are also ballot on bus and trolley outside the metro station by using the clipper card readers, and it automatically calculates the 90- minute transit time. currently, we're distributing about 245 and limited use to get per month. and under this current contract, the vendor is responsible for army and its associated with these. there are problems reported, and they're required to dispatch maintenance staff with an two hours. in reality, we're finding that that response times closer to one hour. the equipment availability rate has been exceptional, exceeding 99%, and with less than 50 hours

of combined downtime for all of the equipment, month. and the reliability of the onboard clipper equipment on the vehicles is one of the highest priorities for the sfmta, consistent collection through clipper. the equipment availability was on the increase in early 2011, reaching its peak in april, approximately 98%. you also noted there was a steep drop the following month by about 10%, which was significant. we worked closely to figure out what the cause of this problem was, and it was determined in part to be determined to be part of a software issue, and an upgrade was implemented in august in order to address that, and you will see that on the chart, where the reliability has gone up since that time.

in addition, we also implemented an upgrade project in the yard to also assist with the availability of the equipment. and as i said, this was a major priority of the asset -- sfmta, and we continue to work to identify alternative to continue to improve this, and just as a note, when the equipment is out of service, operators are instructed to call a central control to notify the staff that are responsible for repairing and replacing the equipment. customers can also called the clipper help desk to report the outages. in terms of proof of payment, the transition, this has been really successful. each has a hand-held card reader that allows them to access the

customer category, their last 10 transactions, and the balance on their card, and the estimate it takes approximately two seconds per customer to check their card. in terms of our revenue projections, i point out that we only finished the transition officially in september, so we do not have a lot of data in terms of revenue to go on since we have completed that. however, early projections for fiscal year 2012 based on the first quarter indicate there has been relatively little change in either the cash share, or monthly pass revenue. and again, this is all it on the first quarter, so we have a lot of time left in the year to see if there are any trends that develop. the total cash revenue has increased 22% over last year from 44% to 66%.

and in terms of the annual cost of the operation of clipper, this includes ticket vending machines and their maintenance, program phase. these are estimated to be approximately $10.40 million for fiscal year 2012. the majority of these are program fees which were negotiated by all of the participating transit agencies during the development of this program over the last 10 years, i would say. because the noted in the previous is live are projected to be offset by a variety of benefits, including increased ridership due to improvements, reduced boarding time, less cash collected in this system, the elimination of fraudulent past years, and reduction of resources required to process and collect revenue and distribute monthly passes. additional data over time will be required to conduct a more in-depth evaluation of the costs

and savings associated with these factors. so, in summary, over the past year, we averaged approximately 330,000 daily and weekly boardings. we have transitioned 120,000 monthly path -- pass customers, gotten fare machines across the system, and also regionally, at eight major agencies have now completed as the debate that portion of their transition, and finally, of their inspection, the equipment of availability and targets appear to be on track -- fare inspection. we will continue to work to a rabbit the feasibility of transitioning additional media over to clipper. these could include passports, cable and card tickets, and we have a significant interest in lifeline passes, and we will continue to collaborate with

others in the region if there are technology changes that can improve the customer experience and also the reliability of the equipment. i do want to recognize andrew from mtc, the director deputies, and we are also an ant -- happy to answer any questions. >> thank you very much. i think the thing that brought clipper to my attention was the experience with not being able to charge my card or to be able to deduct their from my card on several mines, and it probably happened right around april, may, when there was an issue, and also, the experience that my partner was actually having regularly, not even just spontaneously but regularly, on

a vehicle like the 49, that she would ride, and so i was mostly concerned, more than anything else, with our overall responsibilities and things like passenger protocol, like what does happen. i also noticed that a lot of times, people do not seem to know that you're supposed to when and machine is not working to go to dallas operator. i've never seen anybody do that. i do not even know what are passengers know to do that. so i am hoping that we might get a little bit more aggressive in developing some sort of communications system or something with our riders to first of all -- so that everyone knows that there should be protocols to be followed, when

your car is not ted, you just do not go and saddam and give up. you go to another machine, and if another machine is not working, then you telling operator. i do not know if i have does not seen it and my colleagues can correct me, and the other concern i have had, getting back to the fares that we were missing or the revenues that we might be missing, from 1 i understand, asking around, there were some issues with the downloading of the data in the yard, with the machines. or something to that effect. i am hoping that this event in -- and tenet upgrade may have addressed that, but i do want to make sure, i would like to be able to get a little more confidence freckly on how the whole system works and are beginning what is owed to us. i would imagine that there are several sort of places where we can follow the money, so to speak, where it is collected or

not to the system, back into our books, so if we're is any way you might be a to address any of those concerns, i would greatly appreciate it, but i appreciate the report. this is really a step in the direction that i want it to go. those may be three issues, i would love to be a to hear any kind of comments from anyone on this. chairman nolan: director oka? director oka: i have noticed on two or three occasions that people do not necessarily know that they should try it again, and it's still keeps being repeatedly,