the department has considered hiring its own social workers or advocates to partner with probation officers so they can better support you as their transitioning out. that may be something that you see in the budget coming out this year or even something that we may try mid-year, to try to get additional support for the youth as they are transitioning. when we started this model, we really did reach out to our stakeholders. we consider this a student program. not just jpd's facility. we need a partnership and support. part of the response to this report is we will continue to meet with stakeholder groups to get their insight and support as we move forward. we will continue to work with them and figure out how we can best partner. supervisor campos: i would encourage you to do that, and not to wait until next year. one of the things that struck me

in the individual conversations i had with the youth, for many of them, this was a concern. they loved the program, the support they had at the ranch, but there was a fear of what happens once they left, back into the world, if you will. being exposed to some of the same challenges, temptations, issues they're dealing with before they went to the ranch. it struck me as something that was very palpable, something that they were worried about. >> absolutely. many of those you are transitional-aged. oftentimes when we have 18-year- old of falling through the cracks of not being eligible for youth employment programs, but not having eligibility there for the adult programs. issues such as vocational programming, transitional housing. these are big problems for the

youth returning to the ranch given their age. we'll try to find solutions city-wide, better programming, more consistent location of programming for kids at log cabin. we certainly welcome -- you may have some insight on that. supervisor campos: thank you. i do not have any speaker cards, but if there is any member of the public that would like to speak, please come forward. you each have three minutes. >> my name is jack. i am a sitting member of the civil grand jury. i just want to say the report from five years ago, which was filled by positive remarks from the stakeholders, followed by the commendatory report, -- has

been destroyed in 48 of the 50 states. usually, by politicians who are embarrassed. thank you. supervisor campos: thank you. is there any other member of the public that would like to speak on this item? seeing none, public comment is closed. colleagues, can we take a motion to file this item? thank you. please call item no. 4. >> item 4. resolution responding to the presiding judge of the superior court on the findings and recommendations contained in the 2010-2011 civil grand jury report entitled "log cabin ranch moving towards positive horizons" and urging the mayor to cause the implementation of accepted findings and recommendations through his/her department heads and through the development of the annual budget. supervisor chiusupervisor farreo the members of this administration of the log cabin

and everyone else who did work on this report. thank you for coming out. i do want to visit as well. i am glad that you did, chair can boast. i look forward to making that happen in the near future. -- chair campos. for me to vote yes on this, i will have to have some tweaks to the other recommendations and findings. it is not indicative of log cabin ranch. i will be doing this on every report. given our fiscal responsibilities next year, i am not sure that we should be approving any line item right now. the other week we had made a report that we could consider pending funding. i would be happy to support that. saying that we need to support this and fund immediately, i would have difficulty supporting that. >supervisor campos: that is consistent with what we have

done in the past. why don't we open it up again to members of the public. is there anyone from the public that would like to comment on this item? seeing none, public comment is closed. supervisor farrell, would you like to make a motion? findings no. 5, 6, recommendations for no. 5 and 6. supervisor farrell: motion approving finding no. 5, recommendation no. 5, i would rephrase it to say the mayor and board of supervisors should provide capital funding for long needed infrastructure needs when and if available. i am open to different language on this. for funding no. 6. the recent programmatic changes i love hearing about, and i think it is a terrific, warrant

maximum capacity when and if available. recommendation #six. the mayor and board of supervisors should consider a third cohort for the 2011, 2012 budget cycle and for a full court for the 2012 cycle, if and when funds are available. supervisor campos: thank you. we have a motion. that is fine with me. i think the when and if available is up to us to make happen. so we -- my office will introduce an item at the next board meeting so that we can have a follow-up hearing on this. we talked about coming back in one month period that should give us enough time to know the status of this item. again, i want to thank the civil grand jury for continuing to bring attention to this important matter, as degenerate into it, it choke -- as the gentleman indicated, there is a

huge benefit to the city in this process. >> good morning, i just want to clarify the motion. the grand jury does instruct for the findings, there needs to be a finding of agree or disagree. for the recommendation, agree or disagree. disagree can be wholly or partially. i just want to clarify with the amendments, how the motion will read. supervisor campos: with respect to the findings, there is agreement. it is the recommendations where the tweak is. supervisor farrell: are you saying, for example, finding number six, warning to expansion

to maximum capacity. that implies funding to the maximum capacity right away. that is the thing i have issue with. you say that we have no ability to change the wording on finding the basics? >> i believe you can it in your response change the wording. we could incorporate that into the revised amendment that goes to the full board, but it needs to stay -- until we can confer on this -- we disagree partially. if you are not in full agreement, i think you have to be in partial disagreement, but then we can reword that when it goes to the full board. adding the language when and if funding is available. supervisor farrell: that is fine by me. supervisor campos: so on the motion, can we take that without objection? thank you. thank you again. please call -- actually, if we

could file this autumn, without objection. again, thank you to the grand jury, department staff, staff of the city, san francisco unified school district for being here. please call item no. 5. >> i would also like to make an announcement. there is an overflow room on the first floor. item 5. resolution urging the san francisco municipal transportation agency to reconsider and abandon the decision to shift the burden of credit card merchant charges to the city cab drivers. supervisor campos: thank you. madam clerk, have you called item five? yes, you have. this is a resolution that i introduced. this was a prayer resolution. the reason this was reintroduced was because at the time you needed a unanimous vote at the

border supervisors because it was without committee reference. so we wanted to make sure this haydn had a full opportunity to be vetted. the purpose of this resolution is to urge the san francisco municipal transportation agency to reconsider -- to abandon its decision of shifting from credit card charges to san francisco taxi drivers. with that, colleagues, unless you have any comments or questions? maybe we can open it up to public comment. i have a number of cards. charles rapone. mark bruberg. john han. brad newshum. any other member of the public

that would like to speak, you have three minutes. >> good morning, supervisors. my name is charles. i am here on behalf of looks her cab company. as one of the speakers said on the shipyard issue, private businesses need a measure of certainty, particularly when we're asked to make substantial investments. luxor cab accepted sfmta's proposals on credit cards. we signed long-term contracts with the vendors. we made substantial investments along with the vendors involved in new equipment in the taxicabs, new communications technologies, software, generally, a lot of i.t. resources. we would ask that you please do not change the rules after we have already made our commitments and investments, and after we have already made it

happen. speaking to some of the specifics of how the resolution, it is true that drivers pay 5% on sunrise, but they gained 18 cent -- 18% to 21% on all rides things to the recent rate increase. dealing with sfmta is proving to be very favorable for cabdrivers. cab companies get none of the 5% charge. it all goes to the credit card processing company. an important consideration is a new federal law requires reporting of credit-card transactions for cabdrivers. part of the 5% charge is for card processors accounting cost associated with the new 1099 k reporting requirement. the driver will also get a valuable new financial benefits in the new credit card arrangements, and that is greatly reduced risk of credit

card charge backs. the new rear seat technology in taxis is part of the deal and that we made with sfmta. it makes transactions faster and more reliable, and these devices also prompt customers to add a generous tip. at luxor, tips on credit-card actions are averaging 21%. for passengers, the rear seat technology means faster and more secure card transactions. for some, they simply tap their card on the device, and that is it. no signature required. i am running out of time, so i was simply wrapped up by saying the sfmta has matched the new cost to drivers with substantial new revenues for drivers. thank you very much. we urge you to vote no. supervisor campos: supervisor

farrell has a question for you. supervisor farrell: i got a letter from luxor, so a few questions about it. you mentioned you implemented a new contract with these companies. could you explain how that money flow works? >> a substantial amount of money involved in putting these devices in the rear seat. that is part of the deal with sfmta. they insisted that credit card charges, if they were going to be passed on to drivers. we are believed -- relieved. supervisor farrell: you for that expense? >> the vendor bear the bulk of the expense. we do have substantial expenses in i.t. resources, communications technology. the credit card company is the one that has purchased the

equipment. we install the equipment, and they are the ones that collect the 5%. we get that of that. supervisor farrell: 18% to 21% rate increase. when does that go into effect? >> i believe it was the beginning of last month. supervisor farrell: a few months before that, for status quo -- taxi drivers received a rate increase, a 18% to 21%, and i will ask for verification on that -- what you said that there were no increases for the cab companies? >> that is correct. the only thing that cab companies got out of the deal is we are relieved from the burden of paying the credit card cost. supervisor farrell: thank you. supervisor campos: next speaker please.

>> good afternoon, supervisors. the mta has changed the policy adopted by the sport 14 years ago prohibiting companies from passing on credit charges to their drivers. this has created a windfall for large companies and has placed a costly and unfair burden on their drivers. the policy allows credit providers to provide it returned driver is exorbitant fees 5%, much more than other merchants pay. this is causing drivers $1,000 to $2,000 a year. it is not just the driver paying these charges. reversal of this policy is in the best interest of the public. many drivers are discouraging the use of credit and some cases refusing to take it. the passenger may have to go to an atm machine at an additional cost of time and money and great inconvenience, and this policy can also lead to nasty disputes. you can see one on you to become

if you like. i am not condoning the practice, but it is happening and will continue to happen. it is human nature. as long as this policy is in place, it is impossible to effectively monitor or police. you have heard it said, drivers have recently gotten a meager increase. that increase was remedial, came after nine years of waiting. in the meantime, gas prices have gone up over 100%. gates and long term lease fees have increased over 20% in that time. inflation has gobbled up another 20% of drivers real earnings. more taxicab's have made their way onto the streets, and even more are being added. companies are right now waiting in the wings to propose another gate increase. these credit charges will permanently impact credit income. as credit continue to expand, it will reduce it more and more. the only fair solution for both

drivers and passengers is to relieve the driver of these charges. by the way, this windfall that cab companies received did not go through operational expenses. these large companies were paying $1,800 to $2,000 a month to medallion holders. after these charges were taken away from them, they are now paying $2,300 to $2,500 to medallion holders. so they passed on the savings to their medallion holders. it had nothing to do with operational costs. frankly, is not your function or the function of the mta to protect these companies against their own in providence. i would urge you strongly to pass this house, thank you. supervisor campos: we have a question from supervisor farrell. supervisor farrell: thank you for being here.

you mentioned a windfall to the cab companies. we heard that the cab company to receive these charges. i try to understand what the reality is here. >> the windfall is they were paying the credit charges. these big companies were paying these credit charges up to the point that the mta said that they did not have to anymore. that is where the windfall comes. they are still not paying the costs of installing the equipment. that is borne by the vendors. supervisor campos: thank you. next speaker please. >> good morning, supervisors. my name is dave schneider, member of united taxicab workers. i have been driving for about 30

years or so. in san francisco now, we have to occupy all straight -- wall street'. in the taxicab industry, we have the occupied reality. who is at the bottom of the pyramid of the food chain at the taxi companies? the drivers. who kicks up to the top all time in terms of tips and other things? the drivers. who is the working labor, the working poor. the drivers usually. with these credit card charges -- perhaps this is not a great

example and subject to attack -- and what would you charge a waitress on every credit card transaction going out on -- at a restaurant? does this make sense? is there something wrong with this picture? and what about the san francisco living wages policy? doesn't the city have a policy of living wages? most cab drivers do not make much more than $20,000 to $25,000 a year. is that a living wage? i hope you take all of these factors it in consideration. lastly, my memory is not so good but i'm going to try to do it. something that president kennedy said. if a society cannot benefit, the

many who are poor, it cannot save, the few who are rich. supervisor campos: thank you. next speaker please. >> i am an owner-operator of yellow cab. the first speaker mentioned -- he purposely skipped one thing. cab companies charge for a logo. $1,200 a month. that has to be factored in. i am paying for a receipt on top of 12 under dollars. this 5% credit card is it an unfair burden for most of us. second, allow us to transfer for the passenger, like las vegas. they charge about $2 as a surcharge when someone uses a credit card, or allow us to say

no. the third option is to set a minimum price from $30, $40 minimum. this is unfair to pass this. thank you. >> hi, john haughn, san francisco yellow cab driver. what i have here is something you will get from yellow cab. management was nice enough to give me a copy of it. just a point of clarity on some of the information that is it here is that on page 2 that under the new regulations companies that wish to charge drivers must also have rear seat processing units. the third-party processor is also paying for those units and

continued maintenance. it is time wording, but what we understand -- fine wording, but a portion of the piper's son is being taken out to pay for the rear pay terminals. a lot of that is not going to the processing fee, it is going to pay for the back seat terminals, and then they carry advertisements and that is split between companies and vendors. i just want you to take note of the wording. also, apparently, according to this information, most cab companies are charging 5 percent signed. apparently sacramento is charging 3%. i also want you to take know that truth out this information there is claims that drivers are looking at offers of 1.5%. most of the drivers that have

been looking for alternatives are going for something like square, that is charging 2.75%, and that is what some drivers would feel is a realistic charge back, if we should be charged at all. thank you very much for your time. supervisor campos: next speaker, please. supervisor chiu: my understanding that 2% to 3% is average. it there are folks that on either side of the issue that can address that, that would be helpful is i think about this issue. >> that is correct. sometimes i get into conversations with passengers, some of which are in finance. when i opened my account, the person at bank america told me i was getting charged too much by a percent. 2.5% to 3% is said to be about right for businesses.

there is mta documentations that shows is not all going to credit card processing, it is going towards the equipment being installed in the back seat. supervisor campos: next speaker, please. >> [inaudible] i am a crowd driver for 15 years. -- cab driver. the back seat terminal is seen at that day and that moment. we do not have time to tell them to use that. it is risky for our passenger, and is not safety at all.

the credit card, when i use my credit card anywhere, i pay my soul. they do not pay. if i use my credit card, i pay the charge. if they decide to have a credit card charge, they need to put somebody use the credit card, not the cab drivers. this is what i would like to tell you. >> take the members of the committee think you for the chance to address you. i was going to thank you for bringing this issue forward. i am speaking as a cab customer. i am very supportive of this resolution. i have taken cabs in this town for 30 years, and i was outraged

when the 5% charge was imposed on our drivers. you now have to just pay 5 percent signed out of your money. the speaker who mentioned waitresses have to pay for the cost of the credit cards that they process and restaurants, of course not. i would just like to urge you to support this resolution. it is extremely important to us as customers. we cannot afford to wait to have a disagreement with our cabdrivers on whether you will pay cash or whether you will pay credit. it is true that the drivers waited for nine years for an increase. i think it is appalling that the mta could impose this on the

drivers without a very full and thorough review. >> next speaker, please. >> i am waiting for supervisor campos, but i will go ahead and speak anyway. i and general manager yellow cab company. i personally look at this as people are resistant to change. the majority of the drivers are doing fine with this. this process, by the way, it seems like we're fighting something in unique in san francisco. every other city in the united