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 not adequately resources in the past we'd like in this budget to make progress on. we're here a lot today about the revenue side and things were there might be reductions and

wanted to make sure that we kept in mind also the expenditure needs or wants that we want to contemplate to advance our strategic goals particularly the two transit goal. that's what's on the table in summary form for the operating budget now a quick walk through the capital budget and a. on the capital budget i'm going to focus on two slides slide 21 the overall numbers for 2015-2016. the most important thing the numbers assume the voters will approve the g o bond up to two hundred million and the other bond. the last slow down i want to

focus on is our last slide of the presentation which gives us an idea of what might happen in the voters don't approve it similar to what director reiskin did on the operation slide we'll have issues about reliability and implement the t p capital budget and declining infrastructure that's united states a dire picture. also the last bullet is t pc has a grant they match us every dollar for two we could lose the matching program if we can't develop a matching program. with that >> if i can add to that. there was an earlier comment we'll hear more about the

recommendations of the task force which was for capital funding vs. operational funding. the assets we have the buses and trains and switches and signals and overhead wires have in the been maintained at the level to keep them fully in service. the task force will enable us to make strides to bring those assets into a good strategist repair without adding a single bus or driver will effectively help us to increase the vehicles on the street because there will be less in repair shop and spend more on services rather than

relieving a bus that's broken down on the street. there's a relatively relationship brown the operating side and the service side that's the basis for the task force recommendations before we build expands onto the house make sure with the wiring and plumbing is in good shape if we expand the house we'll have more function problems. the - if the measures not got get to the ballet we'll continue to spend more time deterring operating dollars to emergency repairs and addressing crowding because of broken down buses and therefore we might want to think

about the timing of the changes in the budget my think about making some changes in january deferring some of the proposals to january once we know better how much of our operating budget might be freed up from the emergency repairs and the infrastructure vs. the - our need to continue to deferring operating dollars that could be providing service than funding our maintenance needs >> as we go forward i want to ask the city attorney to look into the questions earlier seeing the american act would preclude the means testing. could you look at that for us. that's a significant issue. any other members of the board. i know we have a number of

friends who are here for the free muni for 18-years olds we appreciate you being here today. >> i believe that the budget analysis office is here to present an audit on the topic. >> give me one minute it's not

loading perhaps we should visit the public and come back to this. i'll precede. is your presentation ready. it is short; right? >> chair north korean from the budget analysis office we prepared an analysis on the cost of the fro muni for the youth program at the questioning request of supervisor campos. he asked us to look at the participation in the program and potential revenue sources