should those revenue measures make to the ballot we've been on stronger foots. so the outcome in terms of the operating budget what we'll e really drives the revenues first of all, are indexing policy and we focus a lot on muni fairs but it's all fines fees and fairs the index is up with imagining inflation which is great policy you enacted in 2345079 which gives us some certainty and sustainability we wouldn't otherwise have it bears repeating it's what's nbd us to get strong credit rating so we stretch our money. so optimistic the local and

state revenues come in stronger than expected we get the set side in the budget that represents a quarter of the operating budget so as the economy grows we continue to benefit. on the expense side the 3 things driving the first is the service increases with your support friday morning and the adaptation of the transit effectiveness an increase up to 12 percent in muni service on the street. we're going to try to include as much of that in the budget currently 3 percent in the first year and 7 percent and 3 more to get that's the single biggest

change that we're recommending in the operating budget. we do continue to close 80 that strategical gap in the structural engineers that's more tranquilizers and operators and more car cleaners so all the folks that support of the service you made a big step in closing the fiscal gap and we want to continue that. finally there's other resources in the agency we're looking to realign and invest in communications and technology and some of the positions that support of the outreach that we've heard we need to be providing more technology but also looking for areas to reduce expenditures. i think that some of the progress we've made in making

the system safer have brought you down the exception in terms of the claims for workman's comp and dollars we're going to pay out so we've been able to accommodate some of the services being able to bring down some of the costs. so in terms of the fairs, fees and fines as i mentioned the great majority proposal index according the inflation what i'm going to be proposing subject to our feedback is a few delineations from the index. one is that we increase the a fast pace the bart pass beyond indexing and that's to account for the increases in costs absorbed with the new fast pass

agreement with bart pr they've upping their fares that's a great deal for the people who get the fast past from barhop to glen park through did mission into downtown for just 12 discolors more than the fast pass. we covered the fast pass is among the lowest past cost in the nation so it's a bargain. the one other another deviation would be a slight increase in the visitor pass the 1, 3 and 7 day passes we've got strong demand and when you look at essentially the return on investment you get with the cable car trips their arguably

underpriced. in terms of shifting fairs towards from h based discounts to the ability to pay looking at the following we have the free muni for youth program which thanks to google's generous gift that some of you accepted and approved we've got funding for the next 2 years that's fantastic. what i've heard from you during the discussion we've had to date is the desire to extend that program to include 18-years old and seniors and people with disabilities all again with the same low and moderate income criteria. we've also discussed i failed to include on the slide is the

compliment would be to reduce the amount of discounts on the balance of folks who currently get the fair so instead of the 65 percent their get a 50 percent so emigrate low and moderate folks pie zero and the higher than moderate pay half fair. as mentioned pretty much everything is indexing. i want to suggest that extending the fairs among a number of other things i'll talk about i'll suggest that we make contingent on a review of the allocations fiscal health halfway through the first fiscal year after the impact of the labor negotiation and the november measures we'll see what

happens to the san francisco economic and perhaps require an affirmative action but make sure we feel confident to afford this going forward >> with regard to enrollment there's been discussions thanks to your approval of the parking meter contract we've started the process of upgrading all the metered so all meters in the city will be the smart meter that acceptance credit cards and easier to use and easier to maintain easier for us to remotely gain data and making it easier for people to pay for parking. with regard to enforcement

there's a number of options with regard to the improvement heeding the mayors call that we reduce the amount of certifications that people in san francisco have been receiving on sundays so there's a few different things that we've looked at with regards to that. one is completing restoring the course that you took two years ago in terms of establishing the meter improvement on sunday that was done because sunday afternoons had become like saturday afternoons what the vibrant commercial activities yet the commercials were not ben and it's difficult to assess by car that being the goal of the program found it achieved the program and increased the parking availability so we're

happy with that. but share the mayors concern that a high number of people were getting parking citations so no enforcement on sunday one idea st. is to completely eliminate it or to regulate or composers only the time limits. you recall we made the time limited all 4 hours on sunday but effectively there will be enforcement between 4 and 6:00 p.m. to get the turnover that comes from time limits. the third option which is what i'd like to recommend is that we significantly redeploy our resources away from the sunday

improvement we have higher pressing responsibilities than traffic improvement not change the requirements but really just focus our resources on high priority needs that helps to answer the mayors call of addressing the concerns about sunday parking in prairie the high rate of citations and those have a high revenue impact but given the strength of the mayors resolve and the concerns from the community that pursuing one of the options would be a good faith gesture while preserving the meter. i made reference to that with

discussions about market street and the evening rush hours generally using the beneficiary marks to which is one of the reasons the voters wanted this we want to focus on managing traffic at special events but throughout the city on daily events >> so >> some good news people are safest with the muni and people use the muni not only for work to get around the city. it's good information for us to have it's not at all a suggestion we should sit back in the if many people are unsatisfied but what we can do in the budget by enhancing the service and enhancing

maintenance and enhancing the cleanliness of the vehicle we have the ability to recognize it's an important service for people if you're taking muni 5 to 6 days a work just to get around town that's a critical service but we also found that more than half of our riders are low income so a chunk are low income and 25 borrowed households income that is very low. so we serve the one hundred percent people of the lowest income are a big part of who we serve everyday to as we think about affordability it's

important consideration because many of those people are likely not to have options about how to get around. so in terms of improving service for all who ride muni and especially for muni is not a choice we have what we're calling you muni moving forward which is an umbrella phrase important many things you've approved in recent times that will make muni run better there's operational improvements how we're managing the system to make it run better we're continuing and proposing in this budget so invest more in the appearance of the fleet particularly as we get the new vehicles we want to keep them looking new so people are welcomed onto the bus for a

world-class city like ours. we continue to focus on safety and it's the number one goal and we'll continue to make technology and communications investments to make the system easier to understand, easier to use, easier to get realtime information and easier to get information about the changes like the investments in particular we're including in the budget. as you know we're, of course, vance the service increase that you approved last friday last friday you approved the service with the budget you'll be funding that. just to reminded that service increase increases the frequently on the service to make better connections you'll see the map which what it looks

like really covers the whole city. every one of those lines on that slide will with the funding in this budget will see increased muni service by the end of this fiscal city it's existing a pretty significant increase for the muni riders. there are other sides that are more than the capital budget like the rapid improvements that are the first batch you approved recommended by the dpw we'll have more coming all told 40 miles worth of investments those are making changes to allow muni to run better throughout the city. in terms of the fleet in this capital budget we'll continue the bus replacement we've replaced a hundred and 12 this

will enable us to replace anothers one hundred or so and we'll be expanding the fleet more buses and longer than buses and really popular would fund midlife overhaul of the vehicles this is recommend when you purchase the budget which is why by the end of the vehicles get to the end of their life they're in a decongratulated condition we want to reverse this cycle and then the balance of the infrastructure that the muni system rides upon the facilities in which the vehicles are maintained the signals and switches the radials and overhead wires as well as on the street does the traffic signals

and the i think so signs and the striping the crosswalks that infrastructure maintenance is not sexy stuff but critically important that we invest in that and assuming the revenue measures past we'll moved muni forward. then the safe and complete streets to make sure that the streets are safe for all modes of transportation particularly for people on foot and people on bikes that are the most vulnerable users in our streets. with this budget we'll be able to advance the walk first harassing as part of the pedestrian strategy and enhancing the cooperation with the paving program it's been well fund and we can save money

with other pedestrian improvements in conjunction with the pavement that's more cost-effective and less interrupt to the public and continue on the education part as well as signage and way other simply improvements to make sure that people can get to where they're going safely it's exciting and jump to the next slide in terms of the environmentalist i want to kind of reemphasis with those revenue measures the significant increase in bike and pedestrian funding. i know we've been hearing from some of the folks that advocate for bicycle safety it is not enough i think you can agree

it's never enough but a significant investment we worked to find more ways to put revenue in here i would also point out with the slide that this is only assuming that half the revenues that the transportation task force recommended you recall that the task force recommended two obligation bonds the vehicle license fee increase those revenues represent the assumption that the vehicle listening in the go bonds so if we continue with the task force recommendations next would have the sales tax increase in 2016 we'll be able to fully fund the bike strategies without those you can see a significant

increase in bike and pedestrian fund beyond what we would have been able to do. in terms of pedestrian safety the vision zero initiative or goal which was adapted by this board as well as the board of supervisors is enabled by a few different components walk first is really at the core of that that's the data driven approach to identify where the collisions are happening and but also include our traffic coming program which you recall we've revalued to focus more on aerials and higher injury locations as well as our school safety program like safe routes to school so all those together we can go forward interest those

foekt e together in our 5 year capital budget total 1 one hundred and thirty million about halfway to the $200 million funding the walk first suggested is needs. now the one hundred 31 includes the traffic coming and safe routes to school but note in the first 5 years even in the first 2 years the frame of the walk first program we're going addressing the highest priority and collision areas first. so the biggest gains are at the first years so while we'll agree it's not fully funded over the 10 years we can achieve more than half the benefit because the highest injury locations are

first. you can see in the blue in terms of the first 2 years which is about $40 million again, a significant amount more than we've spent in the past and we're in a better position because of walk first >> in terms of the bike strategy as you recall we're focusing on bringing those l t s three and fours up to 12w5e one and two and focusing in the traffic corridors outlined in black the stream we've brought to you last year. so in terms of the funding we have been able to try to squeeze a little bit of more funding

here. part of the challenge with our goal budget we have a lot of different line items they spill into other lines so we were casing some major corridor improvements that benefit bikes like mosaic streets and other part of the budget to get a complete picture of the bicycle capital program we're showing them here not another 24 million for bicycle share. we don't have the source for that yet but that's a big part of our achieving our 9 percent goal. again while this number may not be as high as we want it's pretty good it's 65 million in the 2 year budget. and just wanted to try to point

out on the slide that's a number of different things that come together here. there are spot improvements that are relatively low-cost like the change at market and val say and the bike sharing and some of the major corridor work whether market street or mosaic there's biking achievement and the standard adding will bike lanes separated like lanes trout the network. so the point is it's not the last bullet but a number of different paths we're following to get to the strategic plan goal of 8 to 10 percent mode share by the end of the strategic cycle.

and then specifically on the transportation system funding needs that the transportation task force identified about $10 billion worth of need identified $3.7 billion from prop k and recommended an additional $3 billion in new local funding. and as i said down at the bottom in red the $500 billion go bond and the license fee goes to the general fund are what the mayor called for and i'm assume in our capital budget. if you all and the board of supervisors approves the capital budgeted they'll approve that assuming all the revenues, however, the controller will take the projects funded and hold those on reserve until the

budget passes and the transit service increase such reductions in customer service fees and the muni program will be offset put off but in terms of the task force they recommend a big chunk towards our unfunded need and to leverage the fund they've pledged another half million dollars if the city of san francisco approves those. there is a significant bum in funding we've not seen no generations in san francisco. i'll point out because the vehicle license fee is a general tax we'll need another chapter

amendment or some sort of other measure to give direction to the board of supervisors or the mayor to dedicate the funding in the unanimous u amount to the transportation system. specifically in terms of our budget in the next 2 years 38 they will bring additional right side to our capital budget that would really be the means to implement the t e p rapid improvements that will allow us to start the offer haul of our vehicles as well as investments in our facilities that will significantly increase the bike and pedestrian safety so really would be a pretty big boon to our capital budget. i did want to note as we're talking about the capital budget biggest project in the capital

budget is the central subway we don't talk about it because most of the contracts have taken place and the construction is just marching forward it's progressing very well. the tunnel contractors has built more than that 11 thousand feet of tunnel and the tunnel boring machines will be popping out this summer and the retrieval shaft completed all 3 stations and the perplex is underway. now that we've hit the hurdle we've forgotten about it. and it's moving under and through the city. so in terms of where we are process wise with regards to the november revenue measures may 20th is the last day for those measures to be introduced at the

board of supervisors. we also not long thereafter will have our know what our labor contract picture looks like and 6 weeks later is the chance to get them on the november ballot. our in an indexing because of some notice and communications requirements are projected to take effect on september 1st. and then, of course, election today. so in terms of the budget we have asked to present it next with work for the preliminary hearing. expect to be back two weeks from today for consideration to approve the mta budget the operating and capital. we've offer got to submit it by

charter by mayor first to the board of supervisors and mayor, we have a budget hearing on the budget in may and then the board has a couple of months to deliberate on the budget. that's where we are negligence of the budgeted there are some additional slides that are back up material i won't go through them if you have any questions, i'll be happy to answer them >> members of the public i want to suggest to my colleagues as we listen to the testimony the only item that has an ass trick with seniors and sdanlts folks i want to consider the fairness of that as opposed to putting all kinds of things it's the services increases and the sunday parking and reflect think