employees that are exceeding 25% of their regular hours in overtime. and i understand that there may be reasons for each case. but nevertheless, you know, if we're going to have a rule that says you're not supposed to spend a certain percentage of your time in over time, i think we want to get to a point where we are following the rule. even though you're not talking about expanding your budget, you are talking about expanding your overtime budget, even if you are staying within the means of the overall budget. i think having the staffing strategy is very important, and i hope we can get to that point. >> right, and it sounds like i had the support to have these classes because we are at an all-time low. from an operation perspective, and with the anniversary of the earthquake, we want to make sure that operational we have enough staff in the event of a recall and that sort of thing. another thing that i wanted to mention is that come july 1, we

will be re occupy station 35, which we have not staffed for about three -- two years. that will put some pressure on, and until we get more people hired, we will be staffing the station on overtime. with the controller talk about in terms of the exemptions, we have worked very closely, and i appreciate the oversight of the department of human resources. the director and i have had discussions related to overtime. there are members that had exceeded the 25% cap. i believe it is 520 for a 40- hour work week for the firefighters that generally work 48.6 hours. the cat -- you're right, we have people over the cap. we have three exemptions approved by the department of human-resources surrounding the reason why some of those employees are over that cap. supervisor campos: thank you. supervisor chu: thank you,

chief, for your presentation. why don't we go to the next department? >> good morning, supervisors, members of the committee. ed risk in from the mta. i want to first paula -- ed reiskin from the mta. i want to apologize for being unable to attend the last hearing on overtime that was at the gao. i was scheduled to be there but was unable for reasons i cannot control. what i was planning to do here today if it would be helpful is to provide an update from that presentation i messed. there is a lot of detail, so maybe i will move through it quickly. but i think there are a couple of things you will see that i think speak to some of the comments of supervisor campos

in his opening remarks. that over time when you see your running overtime at a certain rate, you have to ask yourself if you have the right level of staffing. i think we have started to ask and answer those questions. the big picture, this is in the current year. we have a $780 million budget, of which the personnel portion is about $462 million get our current overtime budget is 30 two million dollars, of which $22 million is scheduled overtime with and muni. this is over time that is built into our current schedules, which is necessary for us to provide the service. the scheduled overtime is the largest budgeted portion, but some of the other drivers are what are listed on this slide.

special events have continued to be a significant driver of overtime. i will speak a little bit more to that. and to the point that the chief mate and supervisor campos made, we have correctly -- that the chief mate and soubriquet -- supervisor campos made, we have shortages from previous hiring freezes that leave us unable to meet all of the demands that we have on our 24/7 system of regular time work, so we end up back filling those through overtime. they are a combination of these three things. either positions that are not in budget propositions in the budget but not filled, or positions in the budget and feel better not at work because they're on some sort of leave. these are all things we're working on. we also, as anybody who uses the city's transportation system knows, we have significant

amounts of old assets and deferred maintenance which causes the need for us to expend a lot to keep the system running. you will see that in the numbers. these are the numbers. the middle columns are what we reported last time. we were about $25 million over budget on the overtime, so we were trekking towards a $57 million. a little bit better picture as of a month ago, $2 million, almost $2.5 million better. we're continuing the downward trend. but still far in excess of what we are budgeted. you can also see that the single biggest driver is a vehicle maintenance, which is where some of our biggest maintenance deficiencies are. some of this is a reactive. when we had a vehicle breakdowns, but some of this is also a pro-active and a deliberate where we are given the amount of full-time

employees we have, and we are scheduling overtime to focus on vehicle repairs so that we can improve vehicle reliability. in terms of transit operators, we're actually fairly close to our scheduled overtime budget, and that scheduled overtime budget will be coming down in time through the use of part- time operators. then you can see the other components here. down below, the enforcement, which is largely the parking control officers, much of which is driven by special evens. that is the picture today. we expect it to be better by the end of the year. regardless of where it ends up at the end of the year, it will be within our overall budget. so then it just to quickly walk through each at the lion's -- lines. in terms of the transit operators, the single biggest thing -- there are two things that we need to do to reduce

overtime. one is hiring. prop g and the contract was subsequently negotiated negotiated250a, transport workers union enabled us to use part-time drivers, which means that some of that is scheduled overtime or we had to settle in overtime to meet some of our demand, and that can start going away. we have got three or four classes of part timers now training and in place. as fast as we can get them hired and trained in on the road, we're doing so but we're also endeavoring to keep up with our full time operator hiring and training. a number of years ago when that there were cuts to mta service, and then the service was restored, we were not able to ramp up the operator hiring as much. so some of that relied on

overtime to fill. the main thing we're doing is trying to hire and staff and improve attendant -- attendance of dealing with sick leave and workers' compensation issues so that we can deliver a larger part of our service plan through regular time operators. and while we are relatively within budget on the transit operators, i want to point out that that is almost half of the overtime in the agency. to walk through some of the other areas, i mentioned vehicle maintenance is where we are over by the most. you can see a number of things that we have done here. one of the most significant is trying to accelerate our capital fleet plan. the previous fleet plan would not have had a new bus hitting the streets of san francisco for another five years. given that we have some 20-year-

old vehicles, that did not seem acceptable to me or to the agency. so we are trying to redo our fleet plan and work with our funding partners to see how we can get new buses on the road faster. these old vehicles are extremely maintenance and tens of. many of them do not have -- maintenance intensive. many of them did not have parts that are commercially available in the longer. there are parts that are very labor intensive for repair, including circuit boards and other hardware and make it very expensive to give these vehicles on the road. but we have our charter mandates to deliver service. and given limited resources at maintenance, do -- we do use overtime to try to keep the service on the road. what we have done in the budget that was approved by the mta board yesterday and that will be submitted for your consideration next month is significantly

increased the level of maintenance, mechanics, staffing in the agency. this speaks to the point you raised where we see that we are continually coming year-after- year, spending so much on overtime. part of the issue is shifting, bringing more regular time resources online so that we can do the significant amount of vehicle maintenance work and other maintenance work more so with regular time resources. what we're also doing in next year's budget is we are increasing the overtime budget. currently this year, we have a $32 million overtime budget. we're checking at $53 million to $55 million. next year's proposed overtime budget is a $42 million. so it is a big increase in the budget, but it will represent a big decrease in actual spending from the $50 million range in have been in. we will be going from $50 million-7 this year to $42

million next fiscal year, and i hope it meets the spirit of the legislation that you all put in place. more or less, this same story on the rail side. some of the good news that is happening is that we're doing some rehabs of the rail fleet that are reducing the maintenance costs, particularly the doors and step mechanism which had the biggest failures. we have a contract with a vehicle manufacturer where we're putting in all new components. the ones that have come back from that rehab are performing much better. there lasting a lot longer between failures, which reduces the maintenance costs. it is helping to reduce the need on the operating side. we're also -- in the maintenance area, we did have some of vacant funded positions. so we have been working with our hr folks to prioritize those

positions for hiring so we get regular time bodies in place wherever we have funded vacancies. in the right away from muni, the tracks, overhead wires, signals, switches -- again, we're targeting hiring. but a lot of the over expenditure in this area has been deliberate spending for things like the eureka curve. anyone who writes the light rail line from west portal will notice that the trains slow considerably as they come into castro station but that is because the rails there are worn and are not safe to operate at full speed. at night, we send a crew on overtime to replace those rails, which is the most cost-effective way that we can do so, but it does generate overtime.

in terms of the management, the street supervision for muni, we have a pretty significant mismatch between our budgeting and how we are deploying resources. we are planning to change our whole approach to street supervision in a way that will significantly reduce overtime. i should say that this and many of the other steps we're taking our big culture changes for the agency and will not be well- received or popular by those who have been receiving and have been earning the over time but that has been part of their work life, some of whom may find their way to city hall to complain about the way we're doing this, but we believe it is better for the agency fiscally and operationally, but it will be a pretty significant disruption and change of culture for the agency. so i will just warn you in advance of that.

finally on the enforcement side, we're making sure we are recovering our costs. we're trying to do better on cost recovery across the board. nearly half of the pco overtime is reimbursed. this is special event where we have reimbursement. we have also been stepping up on the pco's to make sure any vacancies we have, we can fill and reduce the amount of overtime. finally, in terms of compliance with the admin code, we have put in place in overtime management plan to make sure that we are adequately monitoring and auditing and adjusting for where we have employees that are exceeding the 25% or coming close to exceeding. we're trying to catch this before they happen. we still have far too many of those. and many of the foregoing steps that i mentioned will enable us to reduce those. the slide shows some of the

actions we have initiated that are completed since we last reported on at this. this is the timeline we have for, a kind of, completion and then ongoing management to ensure we are complying with the admin code. finally, going forward, there are a number of steps we're taking. i think we right sized the overtime budget. while an increase in budget well, if met, and i intend to meet its, will represent a significant decrease in spending. we're ramping up our hiring so we can fill regular time positions anywhere where we have funded vacancies so we can rely less on overtime. we have put into place a much more rigorous policy to make sure that we are compliant with the admin code. we're seeking cost recovery

where we can. we're using technology. we're making sure that we're we're dealing capital work thate are charging that work appropriately, and most of all, really make this, thanks to your leadership in the leadership of the board, a very strong focus at the executive level of the agency that we need to comply with. and that we live within the budgets that we set for the next year. that is the presentation, i would be more than happy to answer any presentations. >> i am glad that you walked us through the overtime. i think that is definitely in the right direction. he used " a lot about the operators and the rationale why there were lots of overtime. it seems a little bit surprising, that the budget was only 270, but the other was

significantly higher than what was budgeted. you have a rationale why that was the case? >> i've enclosed a 20% of the station agents got available for work home because of workers coghill horror other types of leave, part of this has been back killing of those positions to keep the station agent occupied. we have started to adjust that to bring down, so you will see more often, in the subways, the second station agent booth will be unoccupied. please see it as a diminished service to the public, but it is a step that we feel we need to take. we're focusing very strongly on workers, and other issues so that we can get folks in the dark in fill the positions have

back to work. supervisor campos: i think it is great to see all the changes that are taking place. there was a time when the board wasn't even -- it was a good thing to see this happening. i think more realistic budget and also makes sense. i know it will not be the last time we are talking about m.t.a. overtime. it is a positive thing to see the direction in which the mta is moving. i want to thank you for jumping into it, hitting the ground running, and to the members of the board for making this a priority. i think the progress shows. >> let's move on to the next department.

gosh morning, supervisors. and the deputy chief of the administration bureau. i will be brief. you will see on the overhead of the fiscal year break down scale of actual fund budget and actual spending. i hope you noticed the downward trend. or we are asking for an appropriation to this year, with some mitigating factors including the overtime increased due to occupations at over 1.3 million didn't carry visits,

256,000, and a greater reliance on overtime. rather than risk limiting the essential services to the neighborhoods, we see to do it otherwise. i will address the individual's name of the comptroller's report of the 520 hour limit. they're both mitigated with federal funding. i would be happy to entertain any questions. >> what of removed to the next department? >> i have a question, that you for being here. another of the general fund overtime has declined over the past several years in the police

department, can you touch on that right now? just how much. i know before, i recall being above $20 million. >> i think it dropped to 13, and we hit a 11.8, a 11.1 over the next two years, and we have done that through using a lot of on- duty resources, and sometimes stripping to unsafe levels. with that, spontaneous events or evidence that call for lots of staffing, we have changed people's hours and brough special risky and it's for those events. >> i am happy to report that we

are under-budgeted in the overtime, and unlike our projection who for the six month report, we're projecting the annual overtime to be 7.9 million, which is lower than the controllers projected. i believe the reason for this is the controllers annualized this the first six months, and then we had a lot of spikes and because of occupying as well as elections. in the second half of the year, we are seeing significant decreases in overtime. >> the production is going a year out if he'll the beginning of the year, that is not exactly a good representation of the trend going forward because

of the other factors of the first part of the year? >> correct. we're projecting to end the year at about $7.9 million of overtime. some of the reasons for that are occupied, some of the special events that have happened, because of the medical ward being closed. we are working to see if we can see some understanding. i like to point out that we have got hired in some time, hot since september of 2010. credit is an issue we're looking at closely with the mayor's office. >> why don't we go to the department of public health?

>> in the morning, supervisors. i don't have a presentation prepared for you, but just to give an overall look of where we are, the bottom line number of the comptroller's report is correct. we have set the dates that those numbers came from. a revised between divisions, and we are essentially where they projected in the supplemental appropriation that you have before you later this afternoon. we will be asking for your approval to appropriate revenues to cover about one point i in additional overtime. there are a couple of reasons for the overtime being > budget. the big who picture for us as a% of the total budget.

our total overtime is relatively small portion of that salary budget. we do have some issues that we have been working through and the current year and the past year, at the crux of the issue is that we have a significant portion of the operations on 24/7 staffing. when we are in a situation where we need to backfill, on some occasions, we are only able to do that through overtime. that has been affected the over the last two years, some of the legal issues and trying to manage the staffing to cover the backfill chefs. for the current year compared the budget, we are over $600,000. 1.3 million at laguna honda hospital. we are working with the comptroller's office and the mayor's office.

we are a good place for the system is in place to hire to fill 247 staffing. we have an agreement on what those are, and remove them through the process very quickly. we are working to control the overall level of cost. >> if there are no questions for the department of public health, i will open it up to general questions overall. >> if i may, i wanted to ask the department of human resources, and many of these questions relate to the department of public health, but the issue is probably more prevalent. and at the outset, let me apologize that i will not be able to stay for the entirety of this hearing. there is a prior commitment that i have to attend to. i want to thank all the members of the public that were here and

the workers that were here on this very important issue. i guess my question to the head of dhr, what is the situation in terms of the use of as-needed employees right now? >> i think that we have been hearing this morning about overtime use, and we have new limits on overtime use. and there is work that must be done in the city, typically 24/7 operations. we have heard from some of the department's, typically with miscellaneous employees, a restriction on the amount of overtime were work must be accomplished will result in an increased use of as-needed employees exacerbated by a reduction of resources available to conduct examinations,

including our own department. and because this was an issue that was raised in negotiations, we spent a number of days looking at polling data out of our systems, and i can share some information with you about that. it has been pointed out, based on the information we provided, that 21% by headcount of the employees are categorized as temporary exemption, which is usually as needed. some are used sporadically, others are filling in for people on leave. some are waiting for it to be completed under the merit system. and there is a variety of reasons. however, of those, 13.8% are in

the latest harold -- payroll period and active in the headcount. in gives you a better picture, and what we found is that 7.3% of the total hours worked as needed. it is not necessarily indicative of widespread abuse. full-time employees are about when house and 93 hours. at the average as needed employee is 395. some of them might be working every