and the parking community to have an agreement wore 80s on sftv vehicles plus to 5 years items and directors there's no member of the public who wishes to address this matter. >> director reiskin. >> yes. gail has been the director on this and will give you a report. >> good afternoon i'll be belief i know you have a lot going on today. this is a contract for advertising on vehicles and other mta property. the current distract expires june thot this is year term with two, 5 years terms to renew. the high birtdz was tighten outside whors our current

contractor it has a annual guarantee. the two main differences in about four or five years when the subway opens we'll be bringing an advertisement electroprogram to you. but those numbers are not before you today. the second is that currently, we have a program of 15 window wraps when i say that the entire body of the vehicle have an ad. we have over a thousand vehicles so the proposed contract would be a minimum of 15 and up to thirty and it will be fixed by the director of transportation. tighten outside has offered to put $325,000 a year extra into the magazine if we keep the

minimum of 15 vehicles. and just finally this contract includes the moved advertising policy that you braufd last year if we were to wrap up all our vehicles that's a small jump (laughter) would advertisers be interested >> we have one that's not smiling. >> there's probably a maximum of what the advertisers could sell their expensive they cost the advertisers but if we put in 40 i think tile outside would agree it that. >> but that raises the question but to ask we're focused on the contract than the advertising

policy but when the full wrap came out there was issues of safety issues but we've heard none correct. >> that's my understanding as well. i want to say there's going to be a limit of the selling. i think we cannot get the market but in terms of the wrapping of the materials the material is porous and better and better every year so you hardly notice it we don't want the wrap but it is incremental revenue for us. plus mr. haley loves the wraps because it avoid graffiti.

director ramos. i - >> i don't appreciate the wraps at all. the regular transit riders it's not fun to get into a car that's wrapped. i appreciate the, you know, the incentive to get the revenues but i really want to make it clear it's not fun and games to ride wrapped cars and to get into something you can't see out the windows this is strangely when people found out i'm a director they talked about the parking. the one thing i would like to - i want to make it clear this is totally like we're happy-go-lucky i didn't thing there's trade offices we should be compensated for.

people wait for cars that are less full the ones they can see out of. the designation sdooinz signs are critical. we're not doing a good enough sign to read a car where it's going when you see it pull up in the front you can see the header but walking up to something that's a streetcar and looking the signs that are on the sides you can't see them when they're wrapped i want to make sure we're addressing that >> the wraps do not cover the insignificant over and over the bus number. >> no, i'm talking about the designation signs on the vehicles and this is the second time i have a problem communicating this i'll just take a picture.

>> but the contract provides that the significant ma. >> if the electronic designation size on the side the ones that role those are the ones you can't see. >> we look forward to the picture. >> i have a question does this include the billboards at the bus stops. >> that's the contracted that's a separate contract. >> so is there any public comment or dispute about this contract. >> public comment. >> i think the reason we're having a long discussion i brought up the window wrapping i saw the video the quality of the material is improving to its easier to see outside. i'm not a huge fan of the wrapping but emphatic the fact

we need the money i'm going to support it i i was in sync power and there was no signage on the vehicles but they get fund from the federal government maybe we'll get to that point >> i'll second it director reiskin but also to thank the partners so thank you to tighten which is ably producing this revenue for us. >> any second all in favor, say i. opposed? the i's have it. members of the board we're at a point we've got to do a break and do the closed session we have a session on labor we can do that because we told the young people we'll start the

budget around 4. would you like to do the closed session now >> moving to item 14 which is appropriate to whether or not t. well, back >> mr. chairman announcement of the closed session the mta board meet in closed session they took no action and there's no litigation it would it be appropriate to disclose. >> members we'll take about a 10 minute break and come back for the budget all right.

>> so director reiskin are you doing a brief presentation on this. so ms. bows is going to start off and i'm going to cover a few things on the table for consideration. on the operating budget side she'll highlight the capital budget and look forward to the public and board discussion >> so thank you director reiskin. we're going to tag team this presentation. hopefully, this the the power point works. okay. so the first couple of slides have not changed from the last presentation. the only thing i want to say we have actually had our first budget hearing last week and i

know you were interested in public outreach so on the eight at the library those who are interested can join us at 11 o'clock at the public library and continuing our discussions with the cac they'll have their representations in front of you soon. so on the overview once again we're projecting a surplus of 22 million fore2014-2015. those are basin and don't include a lot of the items. the capital budget is also 677 million for in revenue projects for 2015-2016.

this is the outreach that i additional mentioned we've had 4 public hearings two before you and two separately and so far as who sense council meetings so the april board meetings either the fourth or the 15 will be before you for approval. banned this will be april 15th for the final approval and the information on our website on this slide it our e-mail address for those of you who are interested in giving us feedback from the public. i want to repeat this slide what is the the baseline we're showing baseline surplus you see on the bottom we don't have any

assumptions for labor contract increases like the overtime we've been exposing the budget special events and equipment and work order reduction and no transit services increases and no now a program to support of the strategic plan you've adapted. once again this slide is our indexing of our fairs and most of them are going up slightly questioning i won't go through this it's been adapted before you several times that he >> we're trying to organ the ideas we've put out a little bit better and not highlighting everything open the list you have that in your staff report but focus on the main ones. so first of all, you'll seen in

the slide previous all the fairs are set to index up and this is based on a policy you adapted in 2009 which i think has been a very good policy that makes fairs increases predictability and avoids the big jumps like prior to that. like this formula the fairs index every year and some rounding to the cash fairs reproduced to the next he quarter they haven't i could in the past years but more than $0.14 80 up to 224 or $0.75 to the dollar for the discount fair the purpose you know for the public's invent the purpose of indexing is to keep the fairs that represents about 25 percent of the revenues of our operating budget to keep it moving in line with general inflation that

applies to our other costs like fuel and salary and benefit costs and equipment costs your expenses go up over time and the purpose of the indexing policy st. is to keeling keep our policy in line with that. we've discussed the xoins of this policy is one of the things cited by credit agencies to get a fair credit rating that provides us a lower cost of capital that makes our dollars go further. so a few different fair options we've put on the table i want to walk through and those are ideas for discussion. they've been put forth in some realms as done deals their none of the above only ideas based on

discussions two years ago. the default is to leave the policy in place and this shows you on the slide that would be our status quo, however, there are options we can deviate from the policy we can increase the fairs beyond indexing to recognize an increased value associated with the service provided. we could adjust the fairs for affordability issues either down or up based on ability to pay and defer some things for cash payments something we've spoken about before. in terms of this briefly. in terms of what i'll call special fairs there are some lines and special routes

vehicles provide agriculture bely a better service than our regular trip on mooning like the special vehicles or our historic streetcars we have a significantly higher fair important our historic occasionally cars or a faster ride like our buses provide. so the thinking behind ray's considering raising those fires the folks who are willfully to benefit from the special service that these lines that maybe less local perhaps an opportunity it are that the first one is the f line to raise the single fair from the counter $2 up to three or four or 5 or 6 up to the cabled car fair. this will not impact the cable

cars monthly pass holders so the people who choose to get a monthly pass will be unaffected but people who pay for each fair they'll pay at the $6 level or below. we've gotten very negative remarks to this proposal. it's been circulated in a way that's slightly misleading that the mta is planning to jump the f line up to $6 which is again those are not proposals optional ideas not proposing a range up to $6 nevertheless, we've gotten negative ideas a little bit unclear where people are but people have made the case there's locals who don't use the

f as a special novelty you tourist fair but do so without a transit pass and have adverse impacts to them. the intent was not to a.d.vesical impact the muni riders. so that's the f line. with express buses a couple of things to consider express buses run from the outsider parts of the city and it's a much different and a faster service than the mooning line to raise the single fair instead of is a quarter itch to a dollar or a different ways to require the a monthly pass the more expensive of the monthly passes that's a pass people purchase to reside bart inside the city it's 11 to

$12 more a month. perhaps people would or should pay more for that. the third idea is the visitor passport we have a one-day passport a 7 and 3 day passport those will be indexing up this idea is perhaps to index them a little bit more than the policy called for. those are ideas will special fairs. we've not gotten feedback from the last two. moving into affordability we've had discussions some of the same people were here two years ago that are here in the room. i granted starting this conversation of affordability to youth one of the things you've asks you to look at was looking

at our fair policies to the extent we currently discount by acknowledge or other factors as opposed to discounting with respectability to pay. we took one step in this direction for moderate and income pilot that i approved two years ago. as you know the issue with regard to that particular program has been somewhat taken off our table thanks to the agreement that the mayor 2340shd with google to funded that program for another two years people want that permanent i i know folks who want to make that permanent. you'll hear from folks the desire to expand that up to 18

years old many of the youths that turn 18 are basically still in high school. so i think we'll hear a little bit that today. another one we heard about to extend the program to other category of riders to whom we currently provide a downtown that's the seniors and folks with disabled to extend that inform moderate income and seniors and he folks would sdabldz. another idea the lifetime fair is 50 percent discounted fair we provide for adults to low income adults. we could choose to not let that fair index or further reduce that fair. and then finally in the spirit

of pricing our fairs based on ability to pay rather than age kind of a compliment to some of the others go above would be to reduce the amount by which we're discounting the fairs by those who don't have free muni so basically, the high income people instead of the 50 percent reduction we have a 67 percent discount. in terms of they're paying a third of of the fair and bring it up to 50 percent again, the high no objection folks with the understanding the balance the low income and middle folks would be paying no fair.

and finally with regard to fairs this is something that i think was mentioned at the last meeting also. was the continued desire to get cash out of the system being operationally and cost wise not a good thing to have cash in the system we're between 40 and 24 percent penetration for the clipper so nearly half which is a lot people on patios were people are using e cash. but we still that means that half the riders are paying in cash that's a lot of boarding time so one idea her and other agencies a g transit i believe is doing this and chicago would be to start creating a

differential fair. we still give you a cash or clipper option to allow the regular cash fair to index up to 224 but to hold the fair for people using clipper to $2 so it provides an incentive for people to use the clipper card which we believe based on experience of other transit agencies will incentivize people to move into clipper. we, of course, need to make sure that clipper cards are available and places to reload i can set up an automatic reload with a credit cards. so we need to make sure that clipper cards are available and their affordability and based on

our title 6 requirements this spirit of the board and city we want to make sure it doesn't create any disproportional impact. moving on our fees also index basically through our policy everything indexes and many of the fees are based on the maximum of what we can charge based on our cost recovery. one thing i wanted to mention because it's been in the public realm not initiated by this board but initiated by the mayor has to do with sunday parking. we actually don't have a different foe for sunday but based on the action by the board two years ago initiated the

enforcement of parking meters on sunday. my mistake i wrote this 14r50id but the purpose you recall for implementing enforcement of mercy on sunday to support the activities and get the congestion off the street. the data suggests we're meeting the goal and i'll also note while this was done with the expectation a pretty mingle to modified increase we're 1y5i9 more income if we undo this wroel have a bigger revenue then we thought. it had also been free from the time the free parking was established 40 or 50 years when commercial activity open sunday was different than saturday but

now they're basically the same but that's changed and it's unpopularity it's under stated but we'll have merchant express hair support for it it creates a availability that lowe's allows people to access the commercial areas. our options with regards to the sunday parking is to eliminate it in some areas and eliminate it citywide like the be mayor proposed or if we don't eliminate it citywide we can reduce the citation fee some of the concerns from the mayor and the public a large amount of revenues were based on citations

reflecting people perhaps were not aware that we were not enforcing on sunday despite the effort. those are options with regards to the sunday parking and the last two things i would say this slide is the most important in the deck with regard to the muni budget. the mta budget is what we - the things are on the table for muni. there's two things that are big things are i think an earlier public comment the first is the structural deficit & those are the supporting services to keep the vehicles clean and maintained to train our operators, to reduce overtime or to adequately budget overtime we need to staff up in order to

deliver the service plan we have today we've made a big dent adding $25,000 for the funding that brought our unanimous deficit down from 70 million down to 45. we want to keep dwindling that. and the most significant one and we'll hear about this on miracle 14 to add more service. the t e p will be recommending a 10 percent service increase based on the changes we've been contemplating as a result of the public feedback from the t pe meetings maybe a little bit larger than 10 percent.

we'll be contemplating that as we look at expenditure changes and closing the deficit as well as putting more muni service on the streets. our two big things within muni. we have similar issues throughout the rest of the agency the controllers do audit of a number of years ago identified inadequate staffing and the signage and some of the other assets and starting making progress there we need more progress we're under budgeting the enforcement overtime. that he there are many other communications that span out that's a big opportunity we've