lacks hine site. >> any other members. >> next items. >> we're moving onto the consent calendar. directors you have required that it's severed from the consent calendar and that's the only item. >> members. okay. is there a motion of consent calendar 10.2. >> all in favor say i. >> let's go to 10.6. approving an increase of $505,000 to use the site not to exceed 7.7

million. >> speaker cards. >> yes. >> good afternoon mr. smith. >> good afternoon board members. i apologize that i blurted out the comment. i'm going to quote two people that's in history. relative to what is going on with many mpa, the budget, and the especially the expenditure. one is the spending money mta, like drunken sailors. it is a cliche but it's true. the second one is more refined quote by shakespeare who said, this is for the sound and pure signifying nothing which goes on at all of your meetings that

i attend. i'm glad to try to support you, but i can't. and 10.6 ats $505,000 of a budget of 9.15 million, that goes up to $7.5 million. you avoided this. we brought it up many times. the machines can be extracted in china town are buried underground like many projects around the world, saving anywhere from 21 to $79 million on that 10.6. i don't know if item 12 is allowed to be mentioned. >> this is 10.6. >> thank you. >> next speaker on 10.6.

>> joe karlson. >> mr. chairman and members of the board. i'm not necessarily against this increase you're being asked to support today, however, i want to raise a couple of issues. i think it's relevant to this one and that's back in february of this year, a rep who was a sub contractor to the tunnelling contractor submitted to your staff a scope and budget and their proposal for doing not all the work that's needed for the extension of the subway theater, but part of it was $10.3 million, i believe and your staff has apparently negotiated that down to $5.5 million which sounds like quite an achievement. i won't get into how they did it, but i did want to say a couple of things. let me say a couple of things about what they did. they did it biceps rating the bids into separate bids and

that could be good, but usual ly when you have a number of primes doing tight work, the owner tends to have problems so that's something you should be aware of. they bid it out separately. the other thing was that a rough excluded a number of items from its scope. work items were said, we're not going to do this. which don't have enough information and we won't bid on that. and they excluded a number of risks, normal construction risks that a contractor wouldn't normally take. i don't know if that has been brought out what you're going to do about that excluded work and about those excluded risks. thank you. >> thank you. >> anyone else. if not, members and directors and heinicke. >> there's no bus maintenance used to fund the site. >> i'm not sure what that reference was about. >> okay. the motion, is there

a second. >> second. >> further discuss, all in favor say i. >> okay. thank you. >> onto item 11. >> presentation and discussion regarding the fiscal year 2013 sfmta annual report, which outlines the agency's progress in implementing the goals and objectives from the fy2013-fy2018 sfmta strategic plan. >> presentation and discussion regarding the fiscal year 2013 sfmta annual report, which outlines the agency's progress in implementing the goals and objectives from the fy2013-fy2018 sfmta strategic plan.. >> reiskin. >> what we have prepared for the first time in 15 years, an annual report that highlights the activities of the agency and we've been following the strategic plan, so this is the first of six for this current six year strategic plan cycle. it will continue in subsequent years. it's an obligation that we have under the city's administration code like any other agency of producing a report and wile we've had documented in the past that complied with that requirement, we thought the good work that

you have directed over the last year, means the employees warranted a better treatment which we're manifesting in this report. and i want to at the start acknowledge -- since this is something we haven't done, a tremendous effort by staff in the communications and strategic planning of the agencies, including by january is and our power point guru and advancer. almost all is the great power points you see coming forward to you are her work. so great credit to them and a lot of others in the agency who worked hard to put this together. so i'm going to step through a presentation if we can pull that up. >> moving onto the next slide,

just a reminder that it was 100 years ago that we started this photo as one of the launch of nuni in 1912 onlines on gary street that were heading out to 33rd avenue. it's fitting as we honor our history that we start documenting the good work that we're doing and planning for the future. the next slide, and all of these images really are lifted right from the annual report itself which will not distributing electronically and very few copies. this slide shows what we do here 100 years later from that first car going down gary boulevard. i guess just some

highlights. we have $13 billion worth of assets. nuni boards thousands and we have 217 miles of bike lanes and we do a lot of other things to help people move around including regulating the taxi industry, regulating and managing parking and traffic. when you look at it all on the nearly 5,000 employees on the inside and those on the outside, it's a broad scope that we try to capture the highlights of in that slide. you may recall when we adopted this strategic plan, we adopted these core projects along with it, which i think are things that we probably take for granted but it's good to remember that we have these values of transit first policy of completing green streets of

innovative and clean ones is important. item 13, you'll hear about our title 6 program. but also internally the values of leadership team work and integrity and effectiveness and respect. these are things that we use to guide the work that we're doing everyday. so you'll recall this should be familiar by now. hopefully you've all memorized. if not, i have tattooed on our admission statements and every time that i'm speaking to anyone about the agency, this is really where i start. in terms of implementing the strategic plan, i think one of the things i committed to you that we wouldn't implement a plan that would sit on a shelf. this is meant to be a working documented. we created a

strategic plan that had hundreds of actions that we needed to execute in order to achieve the objectives to align to the four goals of the plan. we identified key performance indicators to go for the objectives and that was approved by you when you adopted the plan and we've been providing updates and we've taking those actions and embedded those in the individual performance plans of employees throughout the agency. in our first year, we got 60 percent of the identified actions either in progress or complete or to be completed by the end of the current fiscal years. some things we won't get 100 percent done, and we focused in the first year of the baseline and you'll see that when we talk about the employee survey. just to walk-through the goals.

goal one, we deliberately -- you deliberately chose safety as the number one goal. it's fundamental to what we do. i have a picture of our parking instructors in front of an at and t park on game day trying to make sure the people going to and from the ball park are safe. some highlights that be were able to achieve under this goal during the last fiscal year and most of what i'm referring to is during the fiscal year that ended this past june. as you know we completed the streets project which is rationalized and what had been a very con have luted rails with charlie buses in a

much safer way. we implemented the 15 mile an hour speed zone that you authorized. nearly 200 hundred of them in front of schools across the street and we beefed up our crossing guard. we also -- as i mentioned the next 50 buses but we're replacing the fleet. increase number of signalized interceptions and signals and the count down signals and we have been focusing on pedestrian safety as we talked about a little bit in my director's report and increased enforcement staff. something you authorized in the budget to make our streets safer. our performance indicators for the three objectives under goal one are shown here. doing well, in terms of injuries, no

improvement in terms of collisions and crime is the one area as we've discussed extensively to government committee and it's stolen property. the rest of the city and across the city, it's an area of crime that continues to be on the rise. we'll be launching a new awareness compain in the next week or so with the police and the da to try to reverse that trend. moving onto goal two, which is the transit first goal. this is making all of the more sustainable goals of transportation more attractive. and you can see the objectives of the goals are listed here. teresa and suzanne lopez are our transportation planners for

sustainable streets and transit division symbolling the partnership of working together to benefit muni and really achieve the goals laid out in the transit first policy first years ago. some highlights some terms of goal two. the red carpet which we've talked about a lot this year that we're proud of. only three blocks that's making a difference and i think a taste of more to come in terms of dedicating more of the public ride of way two transit. a lot of activity in terms of bike plan, implementation, i just talked about oak earlier. we got the jfk drive and bicycle inn and the first bicycle bay which is the turn from out bound market street onto

valencia. taxi medallion, i gave you an update on the full-time medallion and peak hours of medallion and we've made pay phones accessible. i see the data each month and the transaction that's done by pay by phone has been increasing so very well received. a couple of highlights on project goal two. in terms of the goals. our customer satisfaction picking up. nowhere near where we want to be, but moving in the right direction. in terms of bunches and gaps and we're measuring to on time performance, we haven't been able to make much head way there. with improvements such as the red carpet treatment and

the new vehicles, more pacted supervision of this service, we expect to see that start to move up. in terms of what i consider to be the core goals of the entire strategic plan and this is the most shift goal. you recall we had a goal of moving from 38 percent non private trips up to 50 percent. it looks like we got data suggest that we'll achieve that and achieve it sooner so we may need to come to you to reset a higher bar in that realm. i don't know if we know the causality of that. i don't know if we can take credit, but it's good news in any case. the ninal key performance indicator has to do with parking reliability. this is

in areas that we're managing on any given block or a floor of a parking garage that there's one or two spaces available contribute to go the reduction of circling and looking for parking and we're in good shape in that. that has been rising as the price adjustments has gone to play. mixed performance on goal two, but moving in a good direction. goal three, was recognizing our role not just in transportation but in broader environment and quality of life of people in san francisco. we have a lot more people coming to the city. that's part of what you'll hear when we talk about the transportation task force. we need to meet today's needs and tomorrow's needs and be need to do it in a way that's green as possible. we have one of the

greenest taxi. half of our transit fleet being commission vehicles and we one of the clean evident transits in the nation, but the admissions from the sector aren't from the transit or taxi service, but it's for the single use vehicles. we can really make a dent in interpreters of greenhouse submissions. some highlights in terms of goal three. as you know, finally secured our full funded grant agreement from the federal government last fall. as you know the project is underway. they're making their way north on fourth street. it has passed howard and it will cross under bart some time in december. good progress with central subway. we launched all door boarding which is the first in the country to launch

that. so far indications have been successful. every major conference, we're asked to come and present our experience and findings from that. and i know it seems like we talk about this in every item, but what's making your transit director a happier guy is having these new buses roll in. we had the 62 roll in the last fiscal year and we got another 50 this fiscal year and we want to replace more in the next five years. we just issued an rfp to begin thinking of the ralph fleet as well. great progress there. in terms of key progress for goal three, we had five objectives. in terms of greenhouse submissions, making -- we met the 2012 reduction

goal a year early. a little bit ahead of schedule but a lot of work to do. one that we've started measuring is the economic impact delays and we haven't made progress there, but hopefully dr. heinicke suggest that we're starting to making progress. i'll be happy to tell you what we're doing in the underground. the other indicators in terms of capital project delivery, no change yet to report, but our new control system that you supported the implementation of is fully implemented now in the capital division so we're getting much better data to manage our

project. i've seen a lot of projects come in if not on time, certainly under budget. and are improving, i think, on time, on budget, on speck budget of our projects. property cost, no real change, although we did achieve the over time -- overtime reduction of 15 percent, but at the same time we're adding to operating cost by funding those maintenance oppositions that you authorize. which leads to the structural deficits. the main achievements will happen this year and next as you'll hear in the next item with the transportation task force on the capital side and on the operating side, the investments that you made or permitted in maintenance is closing that $70 million gap on the operations side. when we come to you in january with a first over view

of the operating budget, we hope to have a revised number that's hopefully a smaller number because we have started to close the gap on the operator side. and then the final goal, which is about the work environment that we need to create in order to achieve those other goals and we have lauren grasher or our traffic controller pictured here. the folks who do this work are not in the spotlight, but they're working hard out there in the public rights of way everyday to make the system safe and affective and it's our job to support all of our staff to make sure that they can be affective. in terms of the highlights, i'm going to talk about the employee survey because what we did in goal four because this is a little

bit more qualative, we created a baseline and we'll measure how well we're doing in this goal. you have, as you did today,et a number of outstanding employees that we've chosen to honor including mini operator felicia operator who the mayor gave an award for assisting a gunshot victim when she was operating a vehicle. fair inspector cheryl garrison. he fell onto the tracks who was in a wheelchair. she's been one of the largest contributors city wide of the 29,000 employees of the

combined cherry campaign. our very own. and to lee manatello who was awarded an ward for the great work she's done. some highlights of employees that you've been able to recognize and employee recognition being important to support our employees. in terms of performance, all we have is the baseline data in terms of employee information and communications. this is on a one to five scale. we scored a 3.5 on a 5 scale. so work to do there. in terms of overall employee satisfaction, 3.36. on a 1 to 5 scale, in terms of performance planning and appraisal, a lot of work to do here. these numbers should be at 100 percent and our data shows it was 19 percent. 62

percent had performance plans for the following year, so we're on a steep projectry, but the numbers should be 100. in terms of stakeholders, we have post construction surveys and getting some external data. just a little bit in terms of finances. this is showing brian keller who is a new project contractor administrator. his job is to make sure we're maintaining the multi-million dollar contracts on the subway. in terms of where we are in the financial cycle, we're now starting the two year process, two year budget process. looking from this year back on the next slide, you can see modest, but steady increase of revenues and

these actually are closer to budget figures for the current two fiscal years so it came in higher which allowed us to put it in the reserves and if we wanted to spend that money, we don't have the appropriation authority to do that, so they're safe in the reserves. you can see a diverse revenue picture which also is part of what strengthens us when we go to the credit markets that we do have a diverse and steadily growing revenue base. in terms of the operating budget, obviously the personnel are the single biggest and that growth kept pace. i will note, the salary line has been flat and that's in part because or operators which is 40 of the work force are in the mist of their third year of a three

year contract which had no salary increases so that relatively salary level probably won't stay that way, but we continue of course always bring in the fiscal year and balance and working to reduce the structural gap. the highlights in the budget, just to remind you, you increase maintenance and materials and supplies that support maintenance. increase front line staff and enforcement and taxi investigators and staff, and really invested through extra planning and design functioning for the tep and planning for the future and some of the plannings we hear about. in terms of the capital budget, it's a little lumpy depending on the floor of

federal and state and local funds. but it's a healthy budget. our five year cip is $5 million. the rest focused on primarily state of good repair, projects, you can see aside from the subway, it's being transit and fleet. increasing amounts on the streets projects and we'll see more of that as our revenue bonds and more of the property street bonds money and more from the task force comes forward on the capital side. some highlights on the capital side. everything from pet safety improvements, some of which we talked about earlier, it's continuing. overhauls, we've been talking about the new vehicles but you authorized overhaul of 80 or up to 86 of the old plan vehicles to extend

their live. we extend traffic signals. we improve on the corridor and second and manzel. we did our first debt issue znswer. a lot of activity on the capital side and as you'll hear in the next item, even more to come if all continues along and mayor pass for recommendations are adopted and supported. we are not without our challenges. we do have -- we continue to have a gap which is the gap between the resources we would need to support the service that we are meant to deliver through our

service plan and based on the number of assets we have on that. the gap between that and the resources we have in our budget. as you've seen in the board members, this manifest itself and we're competing for a fixed right of away. we're in different modes of transportation and that creates conflict that we're trying to be as sensitive to that conflict but coming from strong policy and technical decisions as we can and opt milliliters -- i noted some gaps and the performance have not consistently reached overtime and that needs to happen. as i