drivers. we completely understand the problem of the shortage of staff. right now we have a full house of drivers. there is no immediate crisis. but it can change quickly. there is no way for people to come into the pipeline. we are nervous and hope the situation can be corrected. thanks very much. >> very toronto. -- barely e. -- barry pronto. >> i hope that the new director will open their eyes to the issue of the mta dealing with taxicabs, a semi-independent industry. i think that the city would

like -- would like to act like we are employees. if you want to educate yourself, please avail yourself of asking questions. do not forget to ask lots of questions. the next issue, you have a proposition on the balkans today. i do not want to try to take sides, but i do have a small story. but took the no. 9 bus a couple of months ago. it was a dramatic experience because of how the bus driver treated people. they can act like police, but i am concerned about drivers not helping to make sure that passengers pay their fair share, like i do. that is my concern with that

issue. cabstands, it is important to make that third and king. i was on the committee with jerry robbins. it should be made permanent. because it works. in closing i am consistently did not have representation last of -- concerned that we did not have representation less time regarding traffic and parking issues. they are not going to the meeting because they're dealing with police matters out there rather than administrative stuff. i am concerned. >> mark berger is the last person crew has turned in a speaker card. >> thank you. you may have made note of this

in the paper that millions of dollars are being funneled from the federal government through the mtc for the electric taxi project that i alluded to in the last meeting. this is a project but forward by private companies. it seems to bypass and sidestep the regulatory process where we have had very little input and we are now talking about what could be 50, 75 cabs in san francisco under a completely unproven program with many questions that i cannot get into but i will just mention one that comes to mind. the person involved clean-air programs and the department of

the environment, who probably had a heavy hand in this whole thing, is now working for the private company that is promoting the steel. so, you know, i think that there are questions here to be answered. the other thing that i wanted to allude to in the time that remains is that the credit card processing rules that have now been established are highly unfavorable. the processing fees under the rules, they are the ones that have the merchant accounts. yet the advertising revenue does not go to them. apparently 90% of it goes to cab companies that are not paying a penny for the equipment because the costs are going out of those

revenues. 10% goes into a driver fund. but this raises questions. >> consent calendars? >> you have a member of the public that wishes to have item 11.4 severed. another board member wants an item removed. >> 11.4? >> 11.123. >> motion to approve? >> second. >> those in favor of thema >> -- in favor? >> aye. >> opposing restrictions for certain street segments and fixing the penalties for violation of restrictions and making technical corrections and clarifications.

>> good afternoon. having been a journalist in my career, i'd look for the stories behind certain issues. this item should handing a separate line item on the agenda. this issue has created a lot of news in the past. this has not really made the news and on a slow news day this would be in the news. this is a big deal. my main question is to get clarification as to whether or not there are taxi issues involved in this. some of the larger vehicles to take people. but the agenda item is not clear in the riding. it would be great to get a clarification as to how the taxi is impacted by this. there is also the fact that we

do not know what the changes mean and what is a commercial passenger vehicle. it is not said in the agenda item itself. some of the material in the staff report explains that, but this is another important issue. the side issue of the company buses that have gone on certain streets, the fact that this legislation has been tweaked and cannot because of increasing company vehicles the take their commuting employees to and from the workplaces, particularly on the peninsula and the south bay, it would be great to get some background and clarification for the public. suddenly something happens and of later we wonder -- what happened? why did they do this? or it is great that they did this. it is important that we know that this occurred. thank you.

>> i will call on the director to explain with further clarification on what this resolution is attempting to do. >> mr. chair, good afternoon. we consider this item to be an administrative matter. when it was passed in 2007, the board of supervisors, working with us and the city attorney is, we advise the division's one and two of the transportation code. they used to be a part of a police code. basically what it does is it delineates certain streets that were identified throughout the area from the neighborhoods that there was a preponderant of vehicles that are frequenting -- frequenting those streets. this entire section was intended

to be dropped from the transportation code. and then moved over entirely to division 2 of the transportation code. for some reason there was a clerical error were the item was dropped. now we are just bringing it back to move the entire section from the police code into division two. but there are no new streets added or removed from the group. these have a minimum threshold of nine or more passengers. we would not expect a taxicab in general. further discussion? >> aye. >> moving on to the regular agenda. item number 12, discussion of the first quarter financial report. >> mr. chairman, members of the

board, i would ask terry williams to present that item to you.

>> good afternoon, ms. williams. members of the board, lamus terry williams. i am here to present to you today the status of the financial status for the first quarter of fiscal year 2011. format that you will see today is different from what you have seen in the past. we will be looking at quarter projections. the first quarter is usually the most difficult quarter to present. is transitional. representing the closing of the old fiscal year and the beginning of the new year. this is the first quarter for 2011, which is no exception. the first chart that i am presenting to you represents of

revenue status for the agency. the first column is the final approved a budget that includes all of the technical adjustments. the second is the approved budget amount for the first quarter of 2011, july through the end of september. the third column is the actual revenue collected during the quarter. the fourth is the project -- projected revenue comparison compared to the first budget. the last column represents variance between the first quarter actual revenue collection and first quarter approved budget. during the first quarter, transit fares are coming in better than anticipated by $5.7 million. operating grants are just a little under budget. parking and traffic elections are trailing behind by 7.5 million. the most significant decline of the revenue that we have right now.

remaining revenue categories are slightly below the quarterly budget targets. combined variants for the category shows a decline for the first quarter. this chart is going to depict the explanations for any variants greater than 500,000. the three major increases in the collections pertaining to the $5.7 million surplus pertain to lifeline passes, cash fairs, and special events. parking and traffic revenues decrease as i mentioned earlier. about 7.5 million. mostly due to a decline in parking related citation

issuances. there are several variables that have contributed to this decline. capital projects, such as the st. francis circle that include parking control officers for controls to ensure pageants rather than citations, special events that also use parking control officers for traffic control, such as sunday streets in the series playoffs in the world series. it impacts the second quarter as well. increase bridge tolls and a fair assessment for carpoolers have affected the number of bridge crossings. furlough days, in accordance with the bargaining agreement has affected the citation issues as coverage is not a one-to-one match because of attrition and the sunset of the employee wellness plan at the end of june.

moving to the expenditure side of the agency, column headings are the same as those described for revenue. the first quarter actual results represent those expenditures posted on the books as being paid to the system. salary and benefit makes up more than 60% of budget expenditures by $3.6 million. contract and with other services are spending at a rate that is under-funded. material and supplies spending at a rate under the budget by $11.3 million. ridden buildings are just under $500. insurance payments under a budget by $8.8 million, work orders are under budget by $15.1

million. the first quarter of fiscal year 11 is $48.1 million under budget. you can look at that for now as it is the last time you will see it through here. bringing us back down to reality on the explanation of the charts. for a salary benefits for the first quarter, they do not reflect the following. approximately $800,000 for those expenditures that are charged through operations that are due to expire in france. not reflecting for the first quarter expenditures for the st. francis' first quarter project originally charged as the costs have not been charged to the capital grant for $3.7 million. contracts and other services do not reflect the services

rendered completed through the payment process. material and supplies do not reflect purchases made through the payment process. also, a $1 million credit to reflect the grants for the parts suppliers for vehicle rehabilitation. equipment and maintenance do not regret the purchases made but not completed through the payment process and assurances do not reflect judgment claims of about $8 million not completed to the payment process. most of them attributable to the san francisco general hospital. work orders, as a result of the controllers audit, april of 2010, we were in negotiations with city and county agencies to document the services provided and what would be supporting

documents. on the agenda for today we have a calendar item for the completed memoranda of understanding. payments to other agencies have occurred during this quarter for work orders until that approval is in place. now that i have explained these variances to you, i would like you to look at the next page. since we now know that actual expenditures under the current fiscal quarter is not a true representation of the current status, expenditures on the first quarter if they were incorporated, it is a very different picture. in contrast to what we saw earlier. total variance would be adjusted as the expenditure is $2.8 million. in comparison to the large

surface that we saw before. with this in mind, we can see where we are, financially, and the agency presents the final slide of the representation. quarterly results for the agency in the first quarter is $5.8 million in deficits. but must emphasize that this only represents 2% of the agency's total budget. we are already taking measures to improve the citation process , transit services is working on a plan of action and once it is finalized, mr. haley will be able to comment on the course of action. in addition, the team and staff are looking for ways to curtail expenditures and equipment. we will continue to monitor over time with new safety initiatives in place and are hoping to see fewer claims in the future.

this concludes my presentation. i will be happy to answer any questions you might have. >> one area that would be helpful for the board to understand is a detail of the technical adjustments made to the budget between when the board adopted a between april of 2010 and now. hard to tell where we are at without knowing the details of those technical adjustments. >> we did present that to you on july 13. but would be happy to include that so that [unintelligible] >> you are saying there have been no adjustments since july 13? >> correct. >> i will go back and take a look at it. i noticed that there were no

adjustments made for work orders. we have $15.1 million in work orders that arguably will discuss during later agenda items. >> we are hoping that with an approved a memorandum of understanding and everything going accordingly, if everything is documented the way that it is now, we would be paying through the other agencies. that is the reason for the lack of variants in the line item. it would be the approved amount between both agencies. we never had a memorandum of understanding for both agencies in the staff. >> i know that. i guess my bottom line concern is that we are upside-down now with arguably the work orders not factoring in to that number. do you take that out with a full

year of expenses? we are upside-down $24 million. it is a concern and until we get more information and will be difficult to deal with. >> any other questions? >> that is a good " -- a good point. >> it is a sobering picture of where we are. >> i know that we have been out of the office and with budget continuity for the people examining, it is important. we appreciate the work that you have done. one question around parking and traffic citation decreases, was that because of a decrease in parking control officers, or are they becoming more careful demand law abiding?

>> we do think that there are people who are complying so that they do not pay the higher fees, which makes an impact as well. there are problems with control officers at this point in time that mr. haley is trying to address. like i said, every time that we have a special event, it is time taken away from the issue of citation. >> it was fairly labor intensive with parking control officers that were dealing with that issue. you can see it we are both operators as well as other supervisors who will be reimbursed through the capital part of the budget. but we lost the actual physical pcl for that time frame that was

being redeployed for some other special events that came along during the timeframe. we also have the challenge of peace co + that may have takenpco's p -- co [s -- pco's that may have taken the relegation that gave furloughs for reducing overall salaries. in line with the director is concerned, we will know more over the next few weeks by in terms of actual revenue expenditures. the plan for the first meeting in december is to give you more of a status update and then do a complete year objection. you can see how skewed it is.

expenditures are a bit higher here because of the lag time in the financial reporting system. >> director? what's the concern that i have is that three months ago we had the unfortunate coming to the meeting of the things affecting citations. three months ago we were given basically the same explanation that you just reported. my concern is that we wanted to know, are we properly using these resources properly? you have ballgames here? well, we had the last year as well. the concern is the amount of absenteeism. are we waiting months before we react before going in the wrong direction? >> he has been working with that group to dig deeper into the

solution that can deal with the absenteeism problem. clearly, st. francis circle, from my observation it could have gone through the exact same number of pco's on a regular basis. let 1620, the pending. in terms of what we were seeing in the first quarter, while we owe mr. ford a get well recovery analysis, there is a sense of urgency. i can see two things on the trend in terms of where citations are going. on the one hand, and we will support this where there are numbers in the breakdown categories, but you could say that the actions that this board

and administration have taken from a transit first perspective are working. getting people not to drive as much as they did, regionally with actions that occurred back in july with traffic reductions in the bay bridge crossings, as well as some of the losses on downtown parking as a result of the terminal and other projects , there were indications that we were looking out from a policy perspective over a period of over time -- and we are in the process of working with the finance people to do a price analysis. there has been a steady escalation in the price of various types of finance. we are trying to see if we can come up with some plasticity analysis -- some elasticity

analysis. there are some policy factors contributing to the numbers. on the other hand, things much more in our direct control -- we have not even fill positions, but the key thing for us is the deployment plan has not been changed significantly in a number of years. priority one is taking a look at the deployment plan of the pco's, not just where they are and what time, but whether they match the changes reflected in all our other planning studies in the city, what is taking place in neighborhoods. we have to take that deployment plan and match it to what we see as the revenue trends for this type of citation. for us to come back with what i would call a credible recovery plan, we have to show you where we think we could drive

revenues. will it come from meters? what do we expect to have happen based on these factors? there has been a lot of work done in that regard, but i would commit publicly that we should be in front of you with an analysis of where we are going with this. after the first quarter, the where we are, we need to have a sense of urgency and move forward. >> one of the things i would like you to look at is the complaints i'm starting to hear, in some cases, officers are crisscrossing to where people are getting cited for the same thing 10 minutes apart when a different officer happens to be in the area. >> i would like to 0.1 more thing out also -- during the same timeframe, we had teh trans -- i wou