expanding the fleet plan. the same aspects over time is needed to complete inspections. we're shoring that up as well. service, as it relates to special events and major infrastructure projects, we're talking about the cost to be reimbursed. a good example of that was the st. francis circle work whereby we had restitution, and what we did to pay for the cost of operator was charged back for the capital project. we will be a lot more diligent doing that in the future. something that has been a cost driver as of late was redirecting bus routes, calling people and to mitigate the crowd and occupy san francisco as well as we look to move vehicles around to ensure people could get to and fro.

also, a decrease in available staff hours, vacancies. when we entered into the public employee committee concession deal, when we talk about furloughs with some of the elements in the organization, parking control officers, other aspects of mechanics and so forth, that really took a toll on us because we had to backfill on that instance. constantly we have people that are utilizing vehicles, and oftentimes we need to shore that up and make sure they are clean, because that puts out a greater picture in reference to taking care of the system in terms of being accountable and responsible. what we're looking to do is more or less leverage employees to address the fleet the parents. -- appearance. some of the things i reference on the bus side are relevant to the other side.

aging fleet. that will help as we go forward to get the vehicles returned to us, whereby we will not have as many service disruptions. on the flip side what we have done during the peak times, we have deployed meet its grooves. what we're trying to do is be a lot more efficient as opposed to taking something out and calling people into fix something on an overtime basis. the rest of the issues, as indicated before, are prevalent on the bus side, as well as real, so i will lead to greater detail at this time. moving forward, we're going to target capital improvements when we talk about the need for maintenance. the reduction in staffing levels. we will fill in key positions, because that is where we really need when you look at across the

board system with overhead wiring. then when you look at initiation projects. this will be a savior in terms of getting it shored up with track replacement. so we can ensure we have a good operating infrastructure. last but not least, our automatic train control system to upgrade that. so we do not people operating in manual mode causing different problems as we look at the system. when we talk about transit support, as i indicated before, we will modify the budget and police that the management center. with the management center that is located right there, we have supervision that can better trouble suit -- troubleshoot the issues on the street. it folks out there to help mitigate, and that should be a big boom for us as we look to

address the cost we're spending. outside of transit, parking control officers. we do have a cost recovery that is captured separately. almost 50% of the overtime has been recovered. we will have your in train dispatchers and improve attendance. we will work collectively with the union to do that, and we will again right-sized the budget. to summarize, as we know it is a cost-effective strategy to manage the daily service demand. however, we recognize there are strategies that can be leveraged whereby we can better management. we have established a better policy so we can manage overtime. we have developed a budget. we will leverage technology as well.

we will improve the port system. so getting to the crux of the issue while we are here, what are required to do to ensure we manage this over the time and the best way possible? first and foremost, compliance and initial gathering data. we are more less running reports and insuring them with the directors that are responsible for the operating farms where we look at sustainable streets with the traffic engineers, park it -- parking control officers and within transit operation. we are going to ensure that the vision directors get reports whereby they can clearly see who in the division are utilizing overtime. we're going to do audits. they will be generated against the payroll data, so there will be flags when we hit 5%. we will double back with the division directors so they can have a better understanding of where the money is going, and

how we can better utilize resources to help bring that down. we're going to share that information online. we have a new internet systems coming on board in march. prior to that we will probably do it through e-mail. when we talk about implementation, that is what i alluded to before. implementing business process changes, and on completion of the cycle we will redo -- review implementation and overall policy. one thing i would like to add, there will be checks and balances, and we have a policy in place that the director is currently reviewing. it was our intent to take it to the governance committee. we plan to do that next week to share that's with them. and turn share that with the purpose that and organization. once we get feedback from the board, it is our intent to implement this at the beginning

of the calendar year. the last slide of the presentation captures the time line when we talk about phase one and the guideline of establishing the overall policy. then the data collection that we will use to help support the importance of adherence to the overtime policy. phase three, setting the goals and targets. we're talk about reducing anywhere from 10%-15% overtime. that will shore up a great cost saving for the agency. stage four, cost implementation. we will work with the work unit to implement the prophecies. the final stage is reviewing it and on going basis with the director. all of us will be held accountable to make sure we're shoring that up. at this juncture, i will take any questions you may have.

supervisor campos: in terms of the policy, so far there has not been a policy in place? >> i would say yes. it was more or less for paul. there will be a policy. -- it was more or less verbal. supervisor campos: i appreciate that. i think what is troubling about the issue over time with respect to the mta is the magnitude of the problem. as i noted earlier, the budgeted amount for the 2010-2011 fiscal year was 33 million. the actual amount that was spent was actually 54 million. so it is your 164% over budget, and that is $21 million fomore

than what had been budgeted. that is pretty significant. the more immediate question for me is, as you have this written policy, is there a specific target in terms of how much you want to save in overtime? is there a specific percentage you are trying to reduce overtime by? >> as indicated come anywhere from 10 percent signed-15%. for instance, with transit it would be great to say the cookie cutter approach, but it is contingent upon the service needs and so forth, but they are not going to be exempt from that. that could be closer to the 10% vs. 15% for my division, which is more supportive. supervisor compost: this is the concern i have. you have the projections, and

you have some of these items. you have for instance track- aligned maintenance. you are currently budgeted to have 318,000. the year-end production is used in close to 4 million. that is 12 times -- you will spend 12 times what you originally budgeted for. if you look at station -- station agents, you will spend five times what your originally budgeted for. with transit operators you are going beyond what you budgeted bite of about 4 million or so. -- by about 4 million or so. if you look at transit operators, he will spend five times what you budgeted for. -- you will spend five times what you budgeted for. vehicle maintenance, which seems to be a very big issue, you

have 2.3 budget, and you are projected to spend 14 million, so you will spend six times what he budgeted on that. so you will spend about almost twice the total budget that you had originally budgeted for. that is your own protection. in light of that, these are pretty significant changes for the current fiscal year, so how realistic is it to expect some real movement, if you will? >> i think it is realistic as we go forward and planned from of the tory -- budgetary standpoint. i do not want to appear as if i am making excuses and so forth, but when we look at that increase, that has a lot to do

with the infrastructure needs. when i talk about how we are focusing on that aspect by leveraging our grants and investing in the state of the repair to make enhancements to that infrastructure, i do feel confident we can bring that down. would that be 15%? i cannot stand here and say that would be, but i feel confident it would be a significant decrease as it relates to what we have planned for in the current fiscal year. that is something else that was unforeseen when we look at all the different activities that is happening in san francisco and the different events that we need to call people in to direct people accordingly. the same with the front-line supervisors. as we talk about the issues we have had with track signal and 90 minutes, we need the front line supervisors to help direct the service vehicles on the streets to go other places. -- line maintenance, we need the

front-line supervisors to help direct the service vehicles on the streets to go other places. i concur wholeheartedly that we have budgeted hour overtime budget in relation to what we have budgeted, and we're hoping we can short some of that up going forward by right-sizing the budget and doing the other things we have in place, and also by having a mechanism by where we are tracking the overtime and insuring everyone is accountable for said overtime. there is a process by which there will have to be authorization from the division director in the absence of director reskin. for instance, if we had some sort of sick -- circumstance late at night. they will have to call the director and ask. as we go forward, i think those mechanisms that will be in place so everyone is fully cognizant of that will help drive this

down some. supervisor campos: one of the things that has been raised in the past two over -- to explain over time is some of the staffing issues the agency has had. is there a plan for addressing the shortages? >> most definitely. quite appropriately the largest part of this agency is muni. some of the critical components were cut out. as we look at car cleaners and talk about the graffiti and other front-line personnel, that has been a priority for the agency as we go forward to make sure we have those types of provisions in the budget going forward for the two-year process. that is key to making sure we can drive down the overtime. case in point, i was at another

division and week graduated a first-class street inspectors, and the first class that we had. as i stand before you right now, we are graduating another class of operators. we have made strides in going forward, but when we look at the attrition rate as it relates to operators, because this is a progressive process, when we gain street inspectors, they're coming from the ranks of the operators. we are robbing peter to pay paul, assuring that up by having the training class is and resources in place by where we are budgeting more efficiently to the needs for our front-line personnel. supervisor compos: one of the things that we also here is sort of the management of capital projects, and one of the things i want to provide context, we had a hearing presentation at the transportation authority

where we heard the results of the performance of it in terms of how the mta is managing capital projects. as you know, looking at some of the major projects, a number of the key projects that the mta is managing, those projects were delayed on average by more than 500 days. you were above budget in terms of the original budget amount for the key capital projects by $80 million. if you look at over time, the $21 million that you went above the budgeted amount last fiscal year, president chiu talk about something like funding free muni for youth, you could find that more than two times over. these are pretty significant savings. wendy you think we as a committee can have a follow-up

conversation with you to see how you are actually doing in terms of the effectiveness of your plan? >> i would say contingent upon what i outlined, i would want to ensure we have data for the least a quarter to show you to see if there is trend data, so i would say the march-april timeframe if we're looking to go forward in january. president chiu: first of all, i want to thank supervisor compasompos, for his comments, s feels like groundhog day. the mta continues to be the biggest culprit when it comes to overtime. we have passed different pieces of legislation to try to curb overtime, but from our standpoint it has been virtually impossible to manage the situation sideways, so i have a

couple higher-level questions. i know you have implemented a lot of things that you hope to implement overtime. first question, why wasn't this implemented before? >> that is a very good question. this is my opinion, i believe there were strides taken, but we were much more concerned with putting service on the streets and in sharing when people went somewhere, they had a way to get back. there was nothing written, so often times you would hear i was not aware i needed to check in with x before doing y, and i know that does not lead the answer your question, but i would just be speculating for past leadership for why it was not done. president chiu: past leadership definitely do the concerns of the board, but nothing was really addressed.

you believe it might be possible for the next year to bring overtime cost down by 10%-15%? >> yes, i do. president chiu: how much? >> anywhere from 5 million-10 million. president chiu: how do you come up with that number? >> looking at what we are projecting for the end of the year, keep in mind the various mechanisms that we are putting in place to shore this up and the due diligence and the cooperation of those within the organization, and keep in mind some of the projects we have to help us with the vehicle and staffing plans, i do think that is attainable because we will not be spending as much. especially looking at the part- time operators. i think that is where we are going in reference to putting forward the numbers that i just cited. president chiu: my question is,

it is their math involved? why couldn't it be a larger number? >> i think it's having it be a larger number, that would be a goal greatly out of our reach. our overtime is very fast at this point. while we could say we could strive to do 30 percent signed in reference to shoring this up and considering the high hearing will take place in phases, i do not think there is any chance we could get there, so it is more putting forward an attainable goal. that is more or less the overall basis for how we striving -- were striving. president chiu: i appreciate that. and i appreciate that you represent the face of the

agency, but from my perspective i think i want to understand how these goals are determined and how we did at a number that will be real, and hopefully quite substantial. the last question i have is than the private sector in overtime costs continue to be as high as they are, someone would be held accountable and not have their job at this point. who is responsible for managing over time? is there a person? you talk about the fact that everyone is responsible for curbing overtime. i have seen no one is responsible. >> is there a single point of contact for overtime? i would say no in the sense that when you look at our agency, we still have muni budget that used to be department of traffic and so forth. what we're trying to do is put

that in one place. i will say that my team and i have been responsible for putting that in place. when i look at it from an administrative point of view, it seems obtainable, but we're looking at the need of delivering service. i would say the division directors, with support from his direct reports. president chiu: how many people are we talking about? >> the director reskin and five of his division directors. president chiu: again, we tried to figure out who is responsible and it has always been extremely elusive. i appreciate the situation. i would like to be able to say to the director in six months, where has the number gone down and for someone to say we haven't been working on this, we

are responsible in the debris of failed or have not failed. i almost feel like we're wasting our time at times by having these hearings, because we're not seeing results. i certainly hope with the new administration that that will change. supervisor compos: thank you. let me put it this way, every time we raise the issue over time we seek -- we hear a lot of different explanations. this is not directed at you. we know you are trying to address this issue. there are many reasons why overtime is what it is. we know operators conduct for half of overtime being spent, but at the end of the day m uni's manage it is 100% accountable for the overtime. the more i think about where

muni is, whether it is the handling of overtime, the mta handling of work orders, whether it is the way they manage capital projects, i think that the three -- single biggest challenge the mta is facing is not a challenge of lack of funding, but a challenge of mismanagement. that is what i think, and that is not about the current administration, but if you look at why we're here, it is because there has been an effective insufficient management. i think unless we do something about that, these issues will remain issues. i am grateful to mr. reskin, because i know he believes in good management has a track

record of having best practices being followed, so i think that is the single biggest challenge that muni has, and this is not something that we on the board of supervisors, whether it is this committee or other committees that have looked at these issues and are happy with. it is not fun to sit here and have groundhog day. we keep talking about these issues, and yet nothing has been done. we have a lot of hope and faith in mr. reskin that he will address this crisis of management that we see, and i think we have an obligation to continue to monitor this any -- to monitor this and provide results to the public. i am not sure if 10%-50% is the right goal. i think it should be as high as we can possibly get it to go.

i do not know if it is realistic, but i think you have a responsibility on the part of this committee to make sure we keep an eye on this, so we will come back to this item. we will not forget about this item. if you save $5 million, that is $5 billion that could be used to increase services to our writeriders, to restore some ofe cuts that were made in the prior-year years, to fund programs like free muni for you and other initiatives we should be funding. it is a real challenge. if you look at the combination of the savings you can have an overtime and work orders and the way the capital projects are being managed, you were talking about millions and millions of dollars that could improve the service to our riders. that is very significant.

with that, why don't we open it up to public comment -- president chiu: i am curious about the management structure within the mta. when i continue to hear is there are numerous levels of barack receipts that make it difficult for you as senior management to get things down the chain. -- bureaucracy that makes it difficult for you as senior management to get things down the change. you think that is an issue in managing over time? >> yes, i do, in the sense of having a global understanding, because oftentimes the communication can be better. i will freeze it in those terms. as i indicated before, i think collectively with the senior leadership team we can work and forge ahead. i am very confident. i do think one of the barriers before was communication and red

tape and bureaucracy at its finest. president chiu: red tape and bureaucracy at its finest is what we are that in government, and that is what we need to change. we need to reverse the downward spiral that we'll recognize mta performance has been, and i do not think we should tolerate red tape and bureaucracy as it continues. thank you for the honest perspective, and look forward to the conversation. supervisor campos: thank you. we can now open it up to public comment. i know we have at least one speaker. >> good afternoon. my name is dana minute cough, im representing a grass-roots

organization. -- dana minicough. we have been talking for a long about the time of being over budgeted, and it is a problem. san francisco organizing project supports bringing down muni overtime costs in order to save money and make it more efficient. as a personal rider, i am interested in making it as efficient as possible. muni -- the mta needs to negotiate with unions over implementing the provisions and hiring part-time workers without using so much of its overtime. sfop is part of the coalition that is working to provide free muni