federal funding to support improving the m.t. arment. -- m.t.a. at some point we will be bringing back to the board a status update of the funded projects that we have under way so you'll have an update in terms of what's occurring with that funding at a more practical -- more direct level. you've read and heard a great deal of information of our september 4 service restoration at the st. francis circle project comes to an end, we're simultaneously preparing to restore service to the -- to our pre-- to our service modifications that we reduced 10%. we were planning on restoring. we were planning to restore approximately 6%. and based on some of the planning of our staff, we are going to be restoring a bit more than that. we've modified our service planning strategies to restore approximately 61% of the 10%

service that was reduced. and while we have not fully restored the entire 10%, we are going to continue that work and our planning to try and reach a january 1 timeline in conjuncture with the board of supervisors and the mayor's office and the task force that will be created to strive for that target. with that i'd ask john to come before you at this time and present and overview of the service restoration plans. john. >> thank you, mr. ford. mr. chairman, board members, i appreciate the opportunity to come before you to talk to you about our proposed service restoration plan. before we introduce you to the specifics of it, i just wanted to point out that what we've done in putting the restoration plan together is try to follow the policy guidelines and views

you provided us with -- you know, through your leadership over the last several months as we've gone through the budget and service discussions. number one, that as we put back or look to restore service, so in a strategic fashion. we look at the roots, ridership and benefits along those lines. throughout the last several months there have been numerous discussions on audits and our approach to schedule making. of course schedules and the levels of service being the biggest driver. we are following in this particular case and are looking at our plan to restore service, doing everything we can to write and develop more efficient schedules, particularly as we have heard loud and clear that the discussions that have taken place over the last several months to minimize the amount

of stand by time. so that is the second principle . the third principle that we wanted to follow in restoring the service was to make sure that whatever we put back, we have the ability to mana are aw last several months we have gone threw ups and downs in terms of our staffing and manpower. you heard an overview of our entire capital assets and also about our vehicles. so, part of what we are doing here is looking at the service that we can restore and effectively manage at the same time. so, those are the three underlying principles that we followed as we looked at what service to restore. the highlights of what we are restoring, first of all, we talked about as we went through

the difficult decision to curtail service in the first place and where the impact would be. restoring the later hours and the earlier start-ups, particularly on weekends on the community routes. over the last several months monitoring the crowding and bunching on key lines where we spread like the california where we open up the headways a little bit. we looked at following all of those principles. in addition we looked at the way we scheduled the up line, which continues to remain extremely popular and heavyly traveled. the last thing we did is restore l.r.b. with your approval.

so, from a broad brush, that is the approach that we took in order to restore the service. in terms of the second point on the efficiency and where we stand and how much service we are able to put back, you heard this report indicate that we in fact are going a little better than 50% of what was cut. in fact, we are able to get up in terms of hours to just over 6% additional service hours from where we were going from some 2 million in may to almost 2.4 million in september. so, from that standpoint and most of the restoration approaching 5% is on the bus, the remainder is on the rail.

so, in terms of a comparative a nal sis, that is what the hours look like. in terms of how we were able to do this, and the point on the schedule efficiency. i want to draw your attention to a couple of planned numbers that we did for planning purposes. number one, in the drive that you directed us to take to schedule more fulfill, the key indicator there is going down to the bottom under stand by hours, you will see a significant drop. all we have done is being off work and on pay status to on work and in a vehicle. we were able to do that through more effective and efficient scheduling to enable to add some of the tighter headways

back rather than having someone say on the one california be out on the street and go in on a stand by for a couple of hours. to keep the vehicle on the street for the entire time so that allows us to drop stand by number now. the second thing is the number of operators. for the first time we have in several months, i think almost six or five or so. we have an operator class in training right now. we have a second one following. in addition we will have operators from st. francis circle will be available for planing purposes that we should be in relatively good shape in terms of operators. the other thing from the manager's side, i would remind the board that we, beginning of

this month we have a new management tool to control and monitor and plan our day-to-day workforce areas. the point on this is to show that we are able to restore this service through more efficient scheduling. one of the other bigger challenges for us remains our vehicles, both in keeping them in reliable state as well as the numbers themselves. if you take a look, and this goes to where we are following point one of the areas that we will have to watch closely for example. it points to where we are really driving to add the service where the riders would benefit. the trolley coach fleet is the most difficult for us to keep maintained and is the least

reliable. we are going to add a little more service in that area. that is a challenge we have to monitor closely. our numbers show that is the number where the most riders would benefit. we are comfortable. we are looking as an institution to get great support from our colleagues to move this along and that is something else we will watch closely. in terms of where we are at this point, over the last several months when it comes to schedules and service levels, i think we have all become masters of the two-minute drill, if you will. so, once again we are on a very tight and unforgiving schedule to get this to successful execution. at one point perhaps we are concerned about hand offs from st. francis circle. as you have been briefed that

project seems to be proceeding effectively. so, what do we need to do. we will discharge our obligation to meet and confer with t.w. local 250 a. first meetings have been held. we have a deadline of a week from day august 1 to post the sign ups. the sign up needs to be beginning on the 16th of august . and we are looking at engaging and involving the union as part of that effort. we believe as you saw last time that when there are active partners and participants that the exercise goes well. once again we need to keep them involved and engaged. given the complexity and the size and the scope, it is important to keep on the schedule if we have.

with that i would provide you with an overview of our approach to this and make ourselves available for any questions. >> what i would like to do before any questions, as you can see this is something that is hot off of the process in terms of our efforts over the last few weeks and months to try to get to this point. i want to make sure we made the schedules as efficient as possible so that one, we were able to restore the 5% service -- the 50% of the 10% service cut on september 4. we were able to do that because we received money from the m.t.c., we received money from the transportation authority and identified early on approximately $900,000 in service efficiencies. i asked john and his folks to go even further in terms of

looking at our schedules and efficiencies, and we found what appears to be addition 10.1% of the 10% service reduction that we can add back without additional costs. these numbers are rolling all over the place. what it is, is additional efficiencies in the schedule. that 232 hours in terms of stand by on a daily basis is a significant amount of stand by to pull out of this schedule. on a daily basis. 232 hours. >> thank you. >> given the newness of this, have we had a chance to confer with the t.w.u. about their views of these efficiency changes or that not happening yet. >> it happened today.

>> and how do they feel? >> i would say that they were engaged. they raised some issues or concerns with the efficiencies created by the schedules. >> in light of those concerns are you still confident that these can happen and are realistic? >> she could probably give us a more up-to-date and accurate description. >> specifically this was one of a series of meetings in which we more or less laid out our intent to our need to adjust our schedules so that we could restore service to those in the city and county that utilized muni. there was a broad brush understanding of our needs. but as we forge ahead and look

at the schedules going forward, i can sense there will be a difference of opinion about the way we want to do service. i have a strong belief we started out on a good, solid feeling. >> obviously you can paper out efficiencies. but if the troops in the field don't agree with it, i think obviously you have to be aware of what the union is telling us about what they think will and won't work. if we need to adjust accordingly, we will consider that. >> i think we as management are totally open to that, however we do want to make sure that any adjustments are cost neutral in terms of making changes. this schedule allows us to restore 61% of a 10% service cut. we are seeing the overcrowding

conditions out there on the system. it is very important that we all come together. >> i am all for as many efficiencies as you can implement. the key being implementing them. i would note to close my comments, this is not just an efficiency, it is not a restoration born out of efficiencies, it is because we got money from outside agencies and we are thankful for that as well. >> the taxi advisory committee meeting has been rescheduled and we will announce the schedule and time at a future date. >> public comment on the executive director's report. nobody turned in a speaker card.

>> good afternoon i should say board members. i am a yellow cabdriver, 21 years, nailtive san franciscoian. i am here to help and not hurt when it comes to saving money. excuse me for one second. i have done a survey. i do a survey every year. i do 1,000 customers every year. i have done it for 13 years. yet it seems to get discarded. they did approximately 662

people responded to their survey. i believe it was recommended by the federal agency. it says here it was a dirty trick. by staff. how could that happen? you know this will save you money, the survey that i produced. all you have to do is analyze it. it has an over 90% return rate. i don't think their survey is any better than mine. in case you didn't know, you have a mandate. taxis have a mandate for on time service. i believe that is your obligation, unless you changed the rules. i am not a team player. i'm sorry. i am not for m.t.a. i am for my customers and fellow cabdrivers. also for the general public. now, without any taxi advisory

commission or committee you have not had one yet. how can you possibly be making rules without a committee of advisory. >> as mentioned earlier we are now going to item 11. >> just for those that are here for public comment and items on the consent calendar, we will be back after the special order. please sit tight. item 11 on the regular calendar adopting amendments to provision two of the san francisco transportation code to specify obligations and medallion purchasers and lenders that have financed in the event that the board that decides that some or all under the pilot program are no longer transferable clarifying for procedures regarding a lenders perfection of a security interest and for closure of a

medallion loan and provided continue operation of suspended medallions during the period of suspension. mr. chairman, you do have members of the public who indicated their interest in this matter. >> unless the board needs a presentation this item has been before you and was rescheduled to this meeting. >> public comment mr. chairman. two minutes. we only have two people who turned in speaker cards. >> good afternoon. i note that these amendments potentially put the agency on the hook for $25 million to $50 million in the form of repurchase of sold medallions

in case the agency decides to terminate the program. i assume that the same would apply if the court rules that the program was illegal. these provisions are obviously there to protect purchasers of medallions. but i think that they also are there to protect the lenders who are guaranteed to get their money back, and probably there would be no program without these provisions because i doubt the lenders would go forward without it. that being said, this agency is basically now in the business of protecting medallion values. high levels of medallion lease fees, so purchasers can pay their debts.

high level of gates to sustain the lease fees. possibly means higher taxi fares, unless you are going to put it on the driver's back. then there is the severe downside of the agency's liability, $up to 50 million with no reserve. with a lawsuit pending. i think it would be prudent upon you to hold off on selling any medallions until that lawsuit is finally concluded. thank you. >> executive director and fellow board members, one general comment. i think this program has been worked on for a long, long time. a lot of hours put in by your

staff, by people in the m.t.a. and all facets of the cab community. and i think we are at a great point to address the concerns of the previous speaker as far as m.t.a. being on the hook. i am assuming you had time to read the information from the lenders and so forth. i don't know how familiar you are with the cab business, but some people are offering to pay cash for these medallions. those that are financing them, their monthly payments that you speak of, are within the realms of what the companies have paid medallion holders for the use of the medallions. in this regard you basically have a failsafe situation where if someone were to default and couldn't make the payments,

rather than going back to the city, the companies are willing to run the medallions until they find another purchaser and basically cover the payments to the credit union that they would need to secure their loan. certainly this is something that's been researched for a while. i am excited to be where we are. i think it will benefit the community. the drivers have an opportunity now to have a stake in this business. i would ask you to support this before you. >> gosh. after months and months of town hall meetings, careful discussion of all of the items, bringing in partners from the

lenders and so forth and making sure that we have everything tied, we are told now what if there is a lawsuit against you that is successful. as you all know now the taxicab business is extremely lito my knowledgius. and if you waited for to make sure that nobody would sue you you would not be making moves about anything. we would be back with mechanical meters. i urge you to go forward from this. yes, they are trying to hold this over your head as a threat to keep you from going ahead. i think at this point we know that this is going to be a successful program. it will be monitored very carefully all the way through. i urge you to continue your supported.

>> good afternoon. i am speaking on behalf of the san francisco taxi coalition. let me say we are fully supportive of this going forward. it is long overdue. without rehashing the long history of the taxi's need for this type of reform, we have narrowed down a situation where the city can raise revenue on these medallions. those that are older and disabled can have a way to exit the industry. now we are creating far better opportunities to get taxi medallions where is before there were none. also one thing that comes up over and over again, these medallions are extremely valuable. once you get them, if you are lucky to survive until age 70 or whatever, you are getting $2,000 to $3,000 a month just for having it. in this case here, although you

would be purchasing it, the revenue you are getting for medallions more than pays for its loan. what this item does is very important. puts another level of safety where the taxi companies have agreed that if for whatever reason medallion holder defaults on their loan the taxi company will operate their medallion and make an arrangement where they will make the payments until the lender until it goes to another medallion holder. we fully support you supporting this item. thank you. >> good afternoon. thank you. well, one lawsuit disappears as the other one will be pending.

the federal american with disability act lawsuit is just ready to be settled. other than that, i would echo all that kim said. the permitting mechanism and proposition k disintegrated to many of people get the medallion for free. the city does not get any money for it. they are at retirement age and they are forced to work. they can't transfer it. under this program the drivers can now engineer a retirement fund for themselves. it is a big support for the drivers as well.

>> good afternoon directors. i was one of the first person who pursued and made tons of efforts to bring this medallion program online. so much so that nobody knows about the flyers passed all over the town. now she don't know me. anyhow, getting back to the business, i want to ask this. i want truth. i want reality. i don't want a backdoor game. there is a lot going on in this taxi department. i sent an email requesting deborah johnson to hold some type of committee. she refused to get the new york lender, the largest in the country, she delayed it for two months. i meet her. i talk to her in the meeting. she kept them out with a

condition. finally when i sent an email, she start talking to them. they said ok, give us the rules and regulations. she delayed the rules and regulations so much that she wanted the other party to get out the loan application printed up in this much time. i suggested to her that there are other people who are willing to lend money, even $500 million. she doesn't want to talk about it. that is going to reduce the medallion by 20% to 30%. how are you going to tell the buyer, hey, the system is changing at the airport but you still are to pay because this is a medallion sold to you.