there are other critical needs that support the service that have not been adequately funded. maintenance is a primary one of those. where we started those -- the process is there was a gap in the baseline. some work that was done a number of years ago, we had some structural gaps and -- in the system. we were able to provide below service we're providing. we need these levels of funding. 20 to 25 for the other modes. this meanws and dess -- means investing in that support and training and other services to deliver the service plan that we are delivering. last year, the comptroller's

office performed an audit on our sustainable streets division and as a microcosm, identified that we're not renewing the striping in the streets and the signage in the streets at the level that we should be. that is part of what is embedded in the $25 million number. a strategic plan has an explicit goal to close the structural budget gaps over the course of the next six years and we were attempting in this first of three fiscal cycles to take a step in that direction. the overview of the revenues of department, where one-third, that comes at -- comes through parking. both the in the payment of the general fund, its parking meters, parking citations, a quarter of the budget is transit fares and another quarter is the set aside from the general fund. the main levers that we can control in terms of adjusting

our revenues are parking and transit. the baseline projections put us at $800 million in each of the next two fiscal years. the expenditure budget, what is presented here is starting from the baseline, 1st making or proposing a number of cuts which are shown on the right side, the management cuts are cuts that are already made. we just did that a few weeks ago that will have eliminated 12 management positions, 10 of which were filled. there will be a few of those that will be replaced by positions at lower levels but the net annual statement and this is and gold -- an ongoing savings will be $2 million a year. our overtime which you heard a lot about and read a lot about,

while our budget is $32 million, we're running at $55 million or $60 million a year. what i am proposing in the first fiscal year is an overtime budget of $42 million, down from this year's projected at 55 and another $5 million reduction in the second fiscal year. we're working with the city on workers' comp, we run a second workers' comp system from the city so we are joining with them. we're doing the advertising for a third-party administrator anne truitt collaborating more strongly with the city with h.r. but also more actively managing workers' comp, i think we can bring those costs down. we have identified some of our equipment purchases for which we can use capital funds. we have been able to reduce them out of our operating budget. the first thing i did was propose these reductions to

expenditures, really trying to find any efficiencies that i could find. what i am also proposing are investments and this is getting back to what i was talking about in terms of investing in the services that support the front- line service delivery. you can see the bulk of what i am proposing and most of these are funded only half in the first year. these are the second year numbers is maintenance and this is primarily on the muni side. these are-these would be mature -- mechanics that are repairing the vehicles, the buses and that trains as well as the infrastructure, the rail, the switches, the signal, the overhead wires. it is the cleaning of the vehicles and the lack of the adequacy of funding levels for these things in our current budget that leads to a lot of the breakdowns and the failures that then have a very direct

adverse service impacts, all of us who ride muni every day know all too well. a very significant investment we are proposing to make in terms of the minutes of the system. also proposing a small amount of funding for transit effectiveness project, planning and design. the tep is undergoing full review of er which should be complete sometime in mid-2013. once that environmental review and public outreach process is done, the idea is that we will have some of the design worked teed up and complete so we will implement to the extent we have capital funding to do so. it is an investment so we can hit the ground running as soon as the eir is certified. we are living to an all -- all door boarding on all vehicles.

we permit that on the rail vehicles but not on the buses because the queuing up at the front door to pay your fair or = -- or your fare adds to the running time. we can speed of the system. we have pass holders on clipper, we have klipper readers at the back doors. anyone who is not pain with clash -- paying with cash can speed the flow of people getting on to the buses. to facilitate that, we are expanding -- adding more fare inspectors. we do not want to inadvertently sent this signaled that muni is free for everyone now. we want to make sure anyone writing m.u.d. @ -- muni at any

time will be required to show proof that they have paid. we also have a safe to being the no. 1 goal of the plan. because of the focus on pedestrian safety from the mayor and the board of supervisors, we're proposing some enhance staffing of our crossing guard program as well as some enhanced staffing with -- for our safety program. supervisor chu: in terms of the maintenance component and the investment there, do you think the mta will be taking a strategic approach to where you do the maintenance work, so it will -- will be based on the largest failures or the lines that carry the most ridership? is there something you would do to prioritize that? >> we will propose some kind of overall increase in level of maintenance. increasing the frequency of preventative maintenance across the board and that is mileage base. the busier buses will get -- or

at least the ones that are troubling the most will get done sooner but we are also doing what we call campaigns and what we do is we identify the components that are feeling the most -- filling the most and we focus resources on those components, lvr's, for example. we have had a number of us -- of failures of the steps that go up and down because they are fairly complex. we are doing a campaign on the steps which data has shown the mean distance between failures which is our main indicator, after we have campaigned the doors and steps is considerably better. the trains travel much longer. we will be focused with -- our resources not so much on a bus lines but on components that fail as part of this mean in staffing enhancement. supervisor chu: in terms of the

parking control officers, we did not talk about it in any of the investments. that is one area where in muni's operations more could be done and be done better. we had difficulty in the west side of town. not only that, sometimes it might be spotty enforcement that is out there. i wonder if there is more that can be done with pco's helping to alleviate or deal with traffic issues. oftentimes we ask the police department or local station but sometimes they are under- resources as well. >> there is more we can do. the police command staff person who is assigned to the mta is commander -- she oversees the parking and traffic enforcement and the fair inspection. she has -- had been focusing on

the transit fare inspectors, working with them and looking at how they were deployed, modifying how they have been deployed, modifying their work program and as a result without changing staffing has generated something like a 70% increase in productivity. she is now turning her sights to the parking and traffic enforcement and while i do not want to set her up and promised 70% increase of productivity, we have preliminary- -- preliminarily identified working with the control officers and kesse are you -- seiu on how they are employed and how they are used to manage traffic. we will see in this coming fiscal year before it starts, some improvements in that regard. we recognize it as a shortcoming and recognize one of the reasons mta was put together in the first place was the use parking and traffic management

to help muni flow better and i do not think we have realized the benefits of that to date. supervisor chu: thank you. i would love to hear an update as we go forward. >> i would be happy to. back to the slide. what we're trying to achieve in this expenditure plan, are reductions to streamline and make ourselves more efficient but also investments to make transit first work to improve safety and establish accountability for the department. these are things that i believe will start moving us in the right direction. a little bit more specifically, just for those who have not already read through and memorized our strategic plan. a few targets that we have concluded in the plan are listed here. we have a 10% reduction goal for each fiscal cycle.

in crime and workplace injuries and collisions. that is all modes, bike, taxi, a car, bus, train. this service go we are aiming for is what we call bunches and gaps and for the first fiscal cycle, the idea -- the goal is to eliminate them for 25% of the ridership. this would start on the most heavily traveled lines. bunches are vehicles that come within two minutes of each other and gaps are vehicles that are off by more than five minutes of their scheduled time. while we will continue to measure on-time performance, it is a requirement in the charter and it is the one that is publicly reported each quarter. what that is measuring is our performance relative to a schedule, a schedule that nobody knows exists. it is not meaningful as what

people feel when you are star -- standing at the bus stop and you're waiting and you see two buses come, the first being overly crowded and the other is empty. this measure is made to better reflect what people actually see and experience in terms of riding the in the service. a big part of this will improve the minutes of the equipment so it does not have breakdowns which in turn create some of the gaps which lead to the bunching we sail . -- that we see along the line. the big overarching transit first policy goal in the plan is to achieve at the end of the six-years -- six years a 50% improvement in the uses. 50% of the trips in san francisco are by private

automobile. our goal is to drive that down to 50 being the muni means. improving taxi service, eliminate bunches and gaps, work towards structural budget gaps -- causing structural budget gaps. in the 39 years since the transit first policy has been in place, we have not moved the dial on this measure. i do not know that we have good data. most people's sense -- people's sense is we have not shifted modes. that is a significant and ambitious goal for the plan and agency in the city. finally as i mentioned, one of the goals in our plan is to close the structural budget gaps and this proposed -- or the expenditure plan and what i will be proposing to the board next week is a step in that

direction. supervisor chu: thank you. supervisor kim. supervisor kim: thank you. i wanted to go back to your previous item. about reducing collisions and injuries. we talked about how we can reduce injuries for -- that is a huge -- reduce injuries for our employees. that is a futures -- huge expense for the city. [inaudible] >> in terms of the muni side, i am proposed -- proposing some enhanced safety staffing. these are the specialists who are evaluating every mini accident or collision that we have. every collision that we have, to determine the cause, whether it was avoidable or not. more importantly to start using the data and the trends to see what is driving these

collisions. initial data shows that i think it is right turns, hit -- a huge percentage of our accidents or collisions by muni vehicles are right turns. it could be refresher training for operators, it could be evaluating how mairs our position. we're trying to drill down and understand the roots of what is causing these collisions and that is something of this city staff will help with. in regard to pedestrians and bicycles, we're working closely with the police department as well as some of the other stakeholder groups, the pedestrian safety advisory committee, the bike coalition, a senior action network, walk sf. to do some of the similar work, to better use data so we understand where the problems are. the department of public health has been extremely helpful as

the co-lead in the pedestrian safety task force. there is a few dimensions there. there is education and physical engineering changes. that we can make in terms of education, we have been working with some of those partners as well as the da's office in terms of diversion programs and other educational approaches. with some of the funding we got from proposition d, brand and mohammed were talking about, we have the ability to start implementing bike and pedestrian safety projects that in the past we have had not as much funding for. same with the things in our traffic calming program. what we're trying to generally slow traffic around the city, we were two-thirds of the way of

implementing a 50 mile an hour zone and speed limit zounds add to murder schools around the city, that should be done before the start of the next school year. and generally tough trying to improve the project delivery of our programs. now that we have somebody coming in, we can get those projects delivered efficiently. very big focus area the sf mta board was delivered in identifying safety as the no. 1 priority in the plan. the final thing that we are doing is we're working with the police department and the mayor's office on try to identify funding for hand-held units for the traffic co. so that's -- so that when they are dealing with an accident, that the data goes right in electronically and immediately goes back to our traffic engineers. right now there's a big lag

between what is happening on the streets and that data getting back to our folks to identify where we might have a problem intersection or an area that may be just with signage or light sitting change or more capital intensive thing work. there is a solution -- there is a solution, getting hand-helds into the hands of officers, it is a relatively small investment that will have a pretty big payback. supervisor kim: i appreciate the use of the data we have been trying to facilitate more data coming in so we can prevent increases, if we know that there are areas that are prone are certain types of activities that facility that happening. the first time i heard we have been collecting data on what causes -- with pedestrians and others that are sharing the streets. i am glad to see we are collecting data and acting on it. i appreciate that work. thank you. >> definitely i and all aspects

of the operation, trying to go to -- in all aspects of the operation, trying to implement data, going to a comsat process. karl rove just for eliminating the bunches and gaps, is that identifying specific efforts? >> what we are proposing to start trying to focus on is the busiest lines that get us the more bang for the black. to the extent we can improve reliability on those lines, we can do so and benefit the greatest amount of people and from there, we will work our way through. the 25% is the goal for the first fiscal cycle and it extends subsequent to fiscal cycles of the plan. supervisor kim: i would love to hear what mta is doing to

achieve the reduction in crime offline. >> i will note since you gave me entree, we do have one part of our operation we believe has been fairly effective has been a grant funded unit of one sergeant and eight officers, this is the plainclothes unit that has been working on the muni system, that has been successful in making arrests of pickpockets and other types of crime that we see on muni. the grant funding for that unit and at the end of this fiscal year and as of yet, we do not have a backfill or sustainable funding. we're talking with the police -- with the police department and the mayor's unit in terms of reducing crime on muni. crime is down on muni. in all categories except larceny, which is largely

related to theft electronic devices. if you get on muni, 90% of the people are immersed in their devices and it leads to inattention and it is making them vulnerable to that type of crime. overall, crime is down on muni. supervisor chu: thank you. >> even after -- given where our revenues are and our expenditures or after the cuts we made but also the investments on proposing it, it has left us with a little bit of a gap relative to an $800 million budget. it is not huge but it is fairly sizable for us to close. it was last projected at a little under $20 million in the last fiscal year and $34 million in the second fiscal year. so our options are either to reduce revenues, increase revenues to reduce expenditures, or do both. on the expenditure side, i have

done what i think you can do up to this point in terms of identifying ways to reduce expenditures. so what is left are either making reductions in service which we really would rather not do and would work against some of our strategic plan goals that could be reducing muni service, by increasing the frequency, shortening the hours, or eliminating bus lines, or it can be reducing our street maintenance and it would take longer to clean graffiti off the sign or to get striping redone in the crosswalk. these are things that we really do not want to do. the other area, a potential area for expenditure reduction is in labor savings. the unions representing about half of our employees have open contracts right now that we are currently, along with the city, negotiating. the transit workers union, they

are in contracts for the next two years through the next fiscal years but all the rest of the contracts are open. seiu local 21, the machinists that represent half of our employees, those contracts are open so we are negotiating with the city and to the extent that we can secure concessions, or cost savings that would help close our gap. supervisor avalos: all along these lines of reductions we could make in the budget, what work has been done to try and lower the amount of work orders? it is a big hot topic over the years. i know that we have been still maintaining a high level. $6.65 million a year around their. what efforts have been done to constrain that work orders leaving the department?

>> for the most part, work orders are a vehicle used to purchase services from city departments -- we used to purchase services from city departments. -- by city hall essentially. we are paying an allocation of general service or we are paying for a specific level of service that we need. so for us to reduce work orders, there would either need to be a change in the city's allocation methodology which would have likely adverse general fund impact or we would have to purchase our services a different way or perform them ourselves. generally we are buying services from another agency. it is within their core competency to provide them, not ours. if we did not pay dpw to do some of the cleaning that we pay them

to do, we could either do it ourselves or we could outsource it. we would still have those costs. the one i would say -- supervisor avalos: does that fluctuate depending on the kind of work to do to defend the mta, how does that -- >> the bulk of the city attorney work order amount is the amount we're paying out in claims. i am working are starting to work with the comptroller's office, the office of risk management and the city attorney's office to see how if there is a risk management approach we can take to reduce our claims. the majority, i think it might be two-thirds of the city attorney's work order is going, flowing out through litigation. the way to address that is to figure out what are the things that are generating the claims in the first place and then working to reduce those things from happening.

baring, adjusting how we do our financing between departments, that could be one area that based on practices and change in how you do your work could have an impact in increasing safety. >> we do not have enough data. in order to know what that goal could be and quite often, and unfortunately, like other city departments, we are an easy target. we're making payouts just in lieu of litigation costs. there are some claims that are hard to defend against if people are going to make them. there are many liability costs that we're generating because of our actions. overtime would be able to drive the down that number.

it is a goal to do that. i do not have a numerical goal for that in mind. perhaps it is myth or perhaps it is reality. there is an understanding that when i guess it was prop b -- a that was passed, the -- when we created a set aside, the next year the work orders increase. could you see if that is your understanding of whether it is true or not? and there are parts of the city services, police department provide support for muni, part of it has been under the police department budget and the other does the work order that is paid for by the mta. wonder if we can call department services and move forward to how we can find muni with budget and fully fund muni and the

department -- police department from a separate pot of money as well. >> to the first part of the question with regard to what happened after prop a passed, like understanding is there were a number of different things happening. a big one is the economy crashed. one thing that happens, some of the formulas for how the work orders were allocated at changed to minimize the impact on the general fund or to directly allocate costs, that was a result of some of the increase to the mta's work order. there were other things that happened. mta started paying for its real estate once it moved into one south van ness to work order to real-estate versus a rent line item. all the sudden we went up by something like $5 million for the real estate. u