that we even have a standard that guides when an action or expenditure is appropriate, that it is an ad hoc decision, and when you look at this, i think that one has to conclude that when it comes to certainly work orders, at the management has been sleeping at the wheel. has been sleeping at the wheel. that is not something you want a transit agency to be accused of. so where do we go from here? because we have had this conversation so many times as president chu indicated. since he and i have been in office for three years, this has been a topic of discussion, and very basic things have not happened. >> i agree with you. i think there is more work to do on our end in terms of making the work orders more robust.

i also think the question you asked about the additional audit, whether you want to consider that or not, but we will revisit the work orders. this is certainly something we need to do. secondly, we happechanged -- wee changed the methodology. i know the director is committed to working on these issues in the near future. supervisor campos: is there a specific target you have? are they going to reduce work orders by 20 percent signed by the end of the year? is there a specific target you have in mind? >> that is a tough question, and i would like to address that wdr.with dr. reskin and get back to you. supervisor campos: ok, we are

here asking, and i know president chu would agree with me in asking the director to follow up on this review and look at the top 10 departments that are receiving work orders and have a closer analysis on whether of not -- whether or not the expenditures are appropriate, that there is enough of a nexus between transit and public expenditures so we do have an area where public dollars are being spent on public transit so that we maximize the use of those dollars. we will do that, and i do not know from the comptroller's office if i could ask the comptroller how long before that review is finalized, because i know as we are talking about the budget process beginning, it is an important for us to get that done sooner rather than later? >> yes, sir. as committed earlier in the

conversation, we will immediately speak with the director, and the comptroller will help us facilitate and navigate, as well as spending time with you of the president and anyone else on the board to make sure we have the relevant questions and we delineate to a place where it is very specific and we can move it forward quickly. supervisor campos: can this be done within 30 days? what is a realistic time line? >> i do not know if it can be done in 30-60 days. what is most important is that we can get together and have a dialogue and move forward with the specific question and make the commitment of a reasonable time. we're willing to discuss that and keep to the commitment once established with all parties involved. supervisor campos: one

suggestion i would make is maybe we can have an internal discussion following this hearing to see what is feasible, and in the next few days we can make an announcement about how long that would take so there is a real commitment made so that we do not wait too long, especially since we know the budget process is already starting. maybe we can figure it out in the next few days and let people know it would be -- when it would be the study is done, and i do hope the mayor's office is paying close attention to this issue, because you have heard the importance of this issue. president chiu: thank you. i certainly agreed that your analogy from many of our perspectives, mta has been asleep at the wheel. i want to thank all the people that have come out, and the trip early the young people that have

been advocating. this morning on cnn there was amazing footage of a 17-year-old who woke up a bus driver with the -- who saw a bus driver asleep at the wheel. i think the young people today are advocating we are making sure we're getting it done. certainly also i know there were folks that commented about the need for free muni. i was part of the majority. i think part of the reason for how quickly we can get this done is over the next six weeks the amount of money that will be spent by the city and work orders will be equivalent to what it would cost to get free muni in san francisco. [applause] and i do not think, and dino

supervisor campos shares that, i do not think we can wait any longer. -- and i know that supervisor campos shares that, but i do not think we can wait any longer. from my perspective i do not understand why it has been so difficult to get an understanding of what is happening with the black folk b. i want to thank the comptroller and other agencies for their work on this, but we have a lot of work to do, and i hope we can get it done quickly. thank you. csupervisor campos: why don't we have this matter be continued to the chair? again, i look forward to the follow-up conversations in the next few days week -- so we can make an announcement as to when the additional review by the comptroller will be completed. we can have a motion. we can take that without

objection. thank you very much. the topic, the overall subject matter of today's hearing, hearings and items basically, how do we bring good government to the mta? how do we make sure we have an effectively run agency as possible. we can call item no. 3. >> item #3, resolution encouraging manageable transportation agency to drop the policy to address -- policy to address overtime over runs in the fiscal year 2011-2012 and subsequent years. supervisor campos: this is an item i introduced with supervisor farrell, who could not be here. i want to thank him for his co- sponsorship of this item. let me say why i think it's

important for us to pay attention to overtime. there are instances when overtime is appropriate, when departments need to spend money on overtime. for me to focus on the issue of overtime is not about questioning over time when the expenditure is appropriate, nor is it about questioning be in very important work that the employees of the mta do for that agency on a daily basis. it is simply about how the agency is managing overtime to ensure that we are indeed using the very limited dollars we have in an effective way. if you look at the issue over time, the city spent millions of dollars in overtime in the last fiscal year for fiscal year 2010-2011. the top-10 overtime departments

spent more than $90 million on overtime. the mta accounted for 36.6% of that total. $33 million in overtime that the mta budget did,, at -- and that figure was revised to $35 million, and if you actually look at the actual in terms of what was spend at the mta for the fiscal year 2010-2011, spent $48 million. that was spent in overtime. that is about 40% of the cities over time. so if we're talking about the mta having to deal with budget deficit, having to balance its books, you cannot do that unless

you address this very important issue, unless we have a sense of what they are doing to look at that issue. the reason why we are here is because one of the things that supervisor farrell and i realize is that agencies have not had a plan, a written plan for how to tackle the issue of overtime. we have asked the mta to come back to us. we did that in september, and they said it would take 60 days to come back to us and present a plan for how they're going to address the issue, and that is why we're here. i want to ask the representatives to please come up and tell us, present to was the plan they have put together for handling and addressing the issue over time -- addressing the issue of overtime. i want to thank you. i want to thank the director for making this a priority. we look forward to your

presentation. >> deborah johnson, director of it ministration. the director offers his apologies because he wanted to be here. first and foremost, looking at the first slide, we have a $780 million budget, and as you can see when you look at personal, salary, the 55% of our budget goes to the line item, but on the flip side we have over time. some of it is scheduled and some of it and schedule. the presentation will delve more deeply into what we mean muni overtime as opposed to what was referred to. going to the next slide, when we talk about the overtime, as i indicated, we have scheduled overtime. the majority is in here to the transit industry whereby a bus operator often has to deadhead,

and they have a certain block of time in which they work. there is a myriad of other things that come into play when we talk about the scheduled overtime. opening up a station, shutting it down, and that is what is included in the whole new lots of scheduled overtime. also, we of special event. there are reoccurring events scheduled every year. we know if there is clear to be some kind of construction you need parking control officers out there to help the facilitating of traffic. that can be planned for. on the flip side we have had staffing shortages. from that we have had to compensate for not having enough employees, and that is because we have not had it allocated in the budget, or had budgeted positions and not killed, or we have had budgeted positions, and people are not at work because of leaguve and things alike.

quite naturally i am sure everyone is aware when we talk about equipment and infrastructure issues, it has to do with us try to strive to have a state of good repair because vehicles are not in the shape we would like. when we talk about having state of the are more reliable equipment -- state of the art and more reliable equipment. going forward, looking at the overtime projections for the fiscal year, to the left we have it itemize byline, relative to station agents, the front lines that come and the underlying point is we're roughly at $32 million in reference to what we budgeted. when you look at the year-end

projection, we are at $57 million. as you indicated before, we have of budget deficit, and it is a major driver of that -- the overtime is a major driver of that. as we know the vast majority is muni. transit officer's account for 2000 of the 5000 employees. the reason time for the staffing of bridge is as we go forward and talk about the plan in which they are leveraging with the recent labor contract that we have for workers union to 38, we have had the ability to hire more operators in utilize part- time operators. sources -- more specifically, we actually graduated a class of part-time employees that are working out of the kirkland division, and that was an instance whereby we had a lot

of overtime in standby pay issues due to the fact that these are limited routes that run during the peak hours and to ensure we had operators readily available, we have them there ready to do that. special event, when we go forward we will right size the budget. we will look at special event and doing due diligence. deferred maintenance, a reference that as well. overall the underlying factor is that we have underbudgeted overtime. as we go forward with preparation for the biannual budget process, that is what we are in the course of doing. moving forward to vehicle maintenance, this is another large driver. the age of the service is beyond the life span. the federal transit

administration has a circular that dictates the light of the vehicle is typically 15 years. as we look at the fleet, we are beyond the mid-life. when we look at what we need to do, we are spending a lot of time trying to shore up for we are, and that requires overtime. we are 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 authorization from the division director in the absence of