that is $2.70 billion over the first five years and roughly the same amount over the next five years. some of the big drivers of those numbers are the central subway is being included in their capital plan, over $1 billion. we have some other big projects like fleet replacement, a lot of their fleet is reaching the age of its useful life. in the first five years, that is contemplated at half a billion dollars. there are other projects, other- aid projects that people -- high need projects that other people want. next we have the port. we have been here a number of times as of late. part of that is figuring out where things are with the america's cup. their increase was slightly over

the 10 years but they are increasing 2%. they have done a lot of seismic made estimates and so forth. the major projects are the crew ship terminal and you have a lot of the america's cup improvements and so forth. you can see the new terminal. on the right is pure 80. -- pier 80. the next area is the -- the user capital. the next 10 years we're looking at a $7 billion investment. that is 12% over last year's 10- year estimate. they're becoming more aggressive. the commission asked if it wanted to start doing pipes and sewer line replacements. they've raised the amount will be doing per year to keep up with those requests and that is

driving the need for greater investment. again you can see the digest is there. this is large infrastructure that is very expensive to maintain. the sewer system improvement program in our plan is a $5.9 billion effort that you'll be hearing a lot more in the years to come next year. getting back to -- in the capital fund, you will see when the departments get up to you. the red line of what is talk --

come across is the capital plan. we did have some years where we had some surpluses. what the challenges have been our that we are not able to fund some of our renewal programs which is where we would want to drive the money to. you can see the renewal program there which is that great. it is hard to tell on the screen. the first bar up from the black bar, >> those pay for things like maintenance, buildings or facilities, not street resurfacing but fixes to roadways and curbs, when we have things that pullout, sort of ongoing maintenance type

activity. when they pay for street resurfacing, it is happening in the chamber. it is a number of different projects involved. that we're addressing the major liability is something that gets funded this way. we are looking at critical planning efforts. this needs to be put up front so we can go to voters and tell them what it will be costing and where will be located. those are what the program will be about. >> a big shift here from 2011 to

the current year is a significant drop in the streets and right-of-way, pay-as-you-go program. we will it -- is that way we will pay for it with the streets bond? >> that is right. i will show you quickly if you go to slide 14, you can see the map of what is going on with a straight bond and it will give you more of a finite picture of how that is being funded. like i said, we are excited we're moving toward a pci of 70, all our streets being in good condition. if you notice the greenbrier on the far right, those are the ones we need some type of new source of revenue for. that is a big part of our effort is to work on what types of revenue could potentially pay for that. we really want to make sure that we take better care of our streets and we do know that if

the streets are in good condition, it costs the same or less to maintain them if there were in bad condition. this is an opportunity to get to that state of repair. >> osupervisor chu: we have see- that was the result of the reauthorization of prop k, that has changed or we said we would spend the funding so that is a significant change. in terms of funding, the jiabao and covers ester 2014. beyond that unless there's a different source, we will seek a big problem or a big gap. >> that is correct. that is right. going back to -- the other thing if you look at -- go back again, i am sorry. again, we were talking about renewals and what is happening with the renewal. these are the core things that i

mentioned, neb., that things if we do not fix it now, they tend to get worse and more costly. that gives you a more finite picture. this is what we need to invest to keep our buildings in the current state of repair. that is more than we can afford it in our budget. it translates into about 1% of our current replacement value for buildings. the industry standard is for a building you have, you want to reinvest 1.5 or 2% back into the structure every year. that is ideal to make sure that it continues to run well and it is doing your annual checkups or maintenance for your car and so forth. what we're doing is the capital plan is recommending the red line below an estimate of 6% of the current replacement value. i am sorry, 0.6%. that is lower, then we should be

doing. that is -- we're trying to grow that by 10%. that is the most appropriate approach. -- prudent approach. we are funding the annuals less than that, at 0.02% of the current replacement value. this is where we see this upcoming big problem is where we will get emergency repairs, we are starting to see it. we're getting ahead of the curve for start doing these things before they blow up into bigger problems. the last slide here, i live to briefly go over here is the budget preview and what is going on. right now we're working with the mayor's budget office with members of various departments and so forth on the request. we received for 2013, $126

million in requests. we have less than that for 2014. we have $403 million in non- general fund requests, so mark the bonds that are going to be sold. 379 constitutes the money that had been committed. we will come back to sell more bonds for the san francisco general hospital and that will be a big chunk of this dollars. you can see what is recommended in the capital plan. the program for this recommend $64 million. last year refunded if you remember at 43 or $44 million. those are the various things we will be grappling with as we winnow down and prioritize the of requests we receive. supervisor chu: what is the

enhancements, $51 million? what would fall under that category? >> are paid to go program we tend to focus -- our pay to go programs, we focus on things that are -- a handful of improvements that will make improvements to things. things in that area would be funds for various new streetscape improvements, such as jefferson street. i -- there are various other projects. departments of -- department of public health, there interested in moving people out of leased space into owned space. we would have to -- love to have our funds starkly pay to go. there are already of enhancements that are critical. sometimes it could be historical preservation of various sites.

>> -- mission street. supervisor chu: this is not a reflection of what was funded or what we plan to fund. >> that is correct. a lot of the enhancements we end up finding is that project development phase. projects that we think we know we need to have but we need to do some planning to figure what they are going to cost, so. supervisor chu: ok. does that conclude the presentation? >> that concludes the presentation. there is one more slide. are there any questions? >supervisor chu: i wonder if you ever funded granite treatment. i'm just joking. >> i defer that to dpw.

supervisor chu: we were so -- we removed granite from sidewalks were from curbs in the past. we used to have those. ok. why don't we open this up for public comment? are there members of the public who wish to speak on this item? >> ♪ with a little luck with your 10-year plan, i know you can make it all work out ♪ ♪ you can lay the plants down, there can be no misunderstanding ♪ ♪ with all little luck, you can make it work out, you can bring your plane in for landing ♪ ♪ with a little luck, you can

make it dandy, make it like candy, you can make it work out ♪ supervisor chu: thank you. are there other speakers on this item? seeing none, public comment is closed. thank you for working on this capital plan update and we look forward to hearing more about it in the budget. we will continue that item to the call of the chair. we will do that without objection. item three. >> hearing to receive updates on the mend a simple transportation agency's budget for fiscal year 2012-2013 and fiscal year 2013- 2014. supervisor chu: thank you. for this item we have ed rieskin with the npa -- and -- mta.

>> good afternoon. i fully support full general fund support for the department of public works and for the city's capital budget. let the record reflect. supervisor chu: thank you. >> i am going to walk you through a bit of context and where we are in the operating budget and a little bit on the capital budget. both of which will be first considered for approval by the mta board next tuesday, april 3. just to provide context -- supervisor chu: the reason we scheduled this one earlier was the mta board is about to also vote on the final budget they will be submitting to the board and as you know, we did not see the budget last year because mta is truly on a two-year budget

and that is why we did not see it. this year we will see it and pass it to your budget. unless there is specific big changes or criteria met will not see the mta budget again. it is a good opportunity to provide feedback. in addition as you know, we are not able to change line items in the budget when it comes to us. we follow the entire budget, or down. it is important to provide feedback early before it comes to us. the one to think -- i want to thank it for being here and presenting. >> thank you and i appreciate you moving this forward so we did have an opportunity for this hearing to take place before we finalize the budget and submit it for the board's consideration. the first opportunity to consider it will be next tuesday, april 3. they could take action to approve at that meeting or could continue the item for the second meeting in august. even could continue and create a

special may meeting before the end of the month but we need to get the budget back submitted to city hall by may 1. just to settle -- said context, back at the beginning of this calendar year, the sfmta board adopted the six-year strategic plan. if you could go to this line, it is a fairly straightforward plan that establishes a vision which is san francisco, a great city, excellent transportation choices which reflects alesci as the importance of the transportation system to making san francisco a great city and the importance of us providing options so people have good prices they can make in terms of how they get around the city. in order to realize that vision, the mta board has established four goals, with regard to safety, one basically in -- implementing the transit

first policy, one relating to the role that mta and transportation plays in our city's economy and environment, and finally one and were looking at the organization and strengthening the organization so we can deliver on those other three goals. all four of which we believe need to happen in order to realize this vision. on the rich of these goals are speech -- are specific objectives, specific performance measures and targets. we are developing action plans for each of those so that when we start the fiscal year, we can start implementing this plan. this is meant to be a working document that will lead to individual work plans and agency work plans and from which we can hold ourselves accountable, you can hold us accountable, the public can hold us accountable. what you should seek in the pages that follow are really in the budget are steps that are- we're taking toward achieving

the goals that are laid out in this plan. just a little bit more on context. when i first entered the agency, like others, one of my questions is, why does it cost so much to run the mta? that is a lot of money. some of these figures give a sense of what is we are responsible for operating and maintaining in terms of the millions of hours of service we provide on muni, the numbers of street signs, miles of stripping and rails and overhead wires, it is a pri -- pretty significant asset base we're responsible for operating and maintaining. this is what drives the budget of the department. our situation is similar to what you hear from a number of

different city agencies in that our expenditure growth, lagging revenues, the revenue growth is lagging expenditures. expenditures are growing faster than revenues and in order to not reduce service or to limit the amount we reduce service, 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