talking about in terms of bike improvements. >> mr. riskin, question for you. the bike and walk. on the education, the only one that you are talking about educating is creating a mandatory driver safety curriculum. i think i have expressed to you is that incorrect? >> that's not all we are funding. that was a specific, i think vision zero objective. it's one example of something that we are doing under education. it's something we are developing for city fleet drivers, for other commercial fleet drivers. for a number of the driver population, but we fund education for cyclist. we are doing awareness campaign for pedestrians. so it's really the education needs to

be all modes that the enforcement needs to be all modes. but there is obviously for both enforcement and education that the drivers are the ones that can really do the greatest amount of damage. so we do have some focus there, but not exclusive by any means. >> okay. that's great to hear. i completely agree about increasing driver education. but i think i have expressed before as well as someone who does rise muni contrary to supervisor wiener i probably drive the most with my little kids, but people drive crazy around now, but bikes are running a muck now and people are driving with their heads down. i think it needs to be in all modes of transportation. i think we need to have that perspective. i agree with you that given the weight that cars have the ability to do the most

damage, if we don't include you that in parts of our discussions, when people look at these things, that's the comment, it's kind of a continued discussion just about the drivers when it needs to be about everybody in our city. >> i think that's a great point. i appreciate that feedback, because education and enforcement needs to be for all modes. that was all meant to be capital budget. but now specifically on the operating budget. from the revenue side what's really driving our budget now in a positive direction is first of all that the mta board put policy in place back in 2009 to index for the most part all fees, fines and fares. so rather than having a year by year every 2-year we've struggled to index inflation so our

revenues are in better position to keep up with the cost of inflation. some of the cost are rising faster than inflation. but having many of our revenues tied to inflation helps us as we look out and do our 5-year financial plans. as i mentioned again, the local and state revenues are complimenting that. so both the revenues that we can generate and control as well as those that flow in externally all of them are turning positively. in terms of what's driving the expenses. supervisor breed made reference to this, the service increases come with an expense. other things that we are trying to do in transit operations even before we talk about service increases and terms of continuing to close that structural gap with not having enough maintenance mechanics and not number car cleaners and not having current operators for the

current service plan, another big expense driver. the labor cost, somewhat we expect that our assumptions of zero and zero in the baseline will probably not hold. 40 percent of our employees. the operators will have zero increase for the last 3 years. everything has been increasing. they have been flat for 3 years. that's something we'll need to address. we are working to contain expenses as well. this is well in terms of what we have. we are seeing some benefits we like to think anyway from safety initiatives we have under taken in terms of lower projections with pay outs for workers comp and less money that we have to pour into our operating reserve because it's now replenished to the 10 percent operating

budget board requirement. so, in terms of fines, fees and fares and specifically with regard to muni fares, generally, the fares are all indexed to inflation as they have been since 2009. for those who have a monthly pass, you have been seeing those go up a dollar or two every year. that will continue. for those who pay single fare because we round to the nearest quarter, that has not gone up. we never got up to tripping that rounding up, but this year we do meet that point. the $2 fare would go to $2.25 and then all the other different fare or products that we have all generally index up. there are a few things that

we are recommending or contemplating that would raise above the index fair rate. one is the monthly pass for muni and bart. that gives unlimited rides on muni for a month and bart within san francisco for that month are our cost to bart have increased and we'll bring the new fast pass agreement to you guys within the next couple of months. we are making a small adjustment of the a fare to account for that increase. we are also proposing because of the strong demand and the relative price in sensitivity a slight index for a pass, 1 day, 2 and 3-day visitor pass primarily for the people riding the cable car which is a $6 fare. we are proposing that a little bit better for inflation. as you all know we are looking at the free muni

for low and moderate income people program. for 5-17-year-olds we did a pilot for these last 20 months or so. that pilot was set to expire in the end of the fiscal year. as you probably know we got a generous gift from google for $6.8 million for the next few years. i think the board has accepted that gift which we are committed to doing that now. we are also contemplating a few expansion of the free muni for low and moderate income riders program. one would be to 18-year-olds, one would be to seniors, one to people with disabilities and one, a very small category would be

special ed students that are older than 18. i believe state law requires the county to provide special education services to kids up to 22 years old. kids in special ed beyond 18, that is a very small population. we are proposing that to bring them into lower to moderate income. we are also evaluating if we do all of those things whether we would reduce the amount of discount that we currently provide to hire than -- higher than moderate income to the scene -- seniors. we currently discount by 5

percent and would reduce to 50 percent. instead of paying the third of the monthly cost you would be paying half of the full monthly cost if you were greater than moderate income. just some context, if you look at the monthly pass cost relative to transit agency in the country we are at the low end. the monthly unlimited pass is on the low end of what most systems cost and our 65 percent discount is greater than most offers. so right now we have a very very deeply discount pass that we are at least discussing raising up to a 50 percent discount if the people who are low and moderate income are riding for free. those things and some things that i will talk about later are things that my board has discussed making contingent on a review of the agency's

fiscal health in january of 2015 when we'll know better what happened with labor negotiations, what happened with anything on the ballot in november and we'll know if any changes happen in the economy. a little bit reserve on the option not to do the expansion should our fiscal situation not support it. generally speaking all will be indexing, we are in the spirit of reducing nickel and diming as the mayor has suggested to do. we are eliminating the customer service transaction fee and we'll make that subject to the review of our fiscal health in 2015. in

terms of transit service we are proposing an increase of 7 percent in the next year. it was approved based on the feedback and the work we did with the community would be recommending a 12 percent increase. so we'll still have another 2 percent to go to fulfill the recommendations and we'd have to do this outside of the budget cycle. it would increase muni service. the frequency of service of more than half the lines including all the most heavily traveled lines and more service which is a populated service offering and looking to increase the amount of money spent to keep the fleet in good physical shape in terms of fleet appearance and people who clean and remove graffiti and we are

grateful for supervisor breed for the graffiti removal. we want to keep our buses good as they roll in. we believe that muni riders deserve that experience. there are other things that we are proposing in our budget, other operational improvements, safety and improvements in technology and communications so we can better communicate not just with muni riders but in terms of outreach. some of these things we are similarly proposing would be subject to the review of the agency's fiscal health. there is a lot of in you stuff we want to do, a lot of expansion that we believe that we'll be able to do, but we want to hedge our bets a little bit to make sure we are able to do so before pulling the trigger on those. >>supervisor scott weiner: back to the potential expansion of the free pass

program, i know we've had a long debate about the free muni for youth program for a long time, but apart from any philosophical arguments on one side or the other, putting that aside, just in terms of the numbers. and i know we are very appreciative of the google gift to extend the low income youth free pass program for 2 years. i think we need to all assume that that money will probably not last forever and eventually muni will deal with the decision whether to continue it or absorb that cost into it's own operating budget. but in terms of if we were to have a free pass program for all low and moderate income youth through 18 disabled and senior, my question is what would that cost. and the moderate income

part of it is definitely a change in the past because moderate income in san francisco for a single person goes up to 87 or in the high 80s, almost $90,000 a year and the moderate family $120,000 a year. the question is what is the total price tag of 5-18-year-olds, disabled, senior, low income and moderate income? >> thank you. to the chair, with regard to the low to moderate when we adopted the pilot 2 years ago it was for low and moderate and that's defined as a hundred percent of area median income. for a family of four it's slightly above $100,000. you are right, it is including moderate. that has been more or less the

discussion since 2 years ago. the original proposal was for all youth what we had proposed was for low and moderate income youth. in regards to the cost, so for youth 5-17 years old is about $3.4 million. if you add the 18-year-olds is $1 million and people with disabilities an additional million dollars. about 8 1/2 million that we project now. it's a little bit hard to do these projections because we are not sure how many people would qualify. that's our best guess at the moment. >> i would be curious to know the basis for that. when you look at the demographics at the muni rider ship, you talked about at the beginning we know there is a sizable

population that relies on the system and disabled people that rely on the system and we need to improve the accessibility but it's more accessible than a lot of the systems and we have a lot of youth that use the system. total fair is about $200 million a year. that seems $8 million to give free fares to all youth up to 100 percent of am i, all seniors and disabled folks, that number seems low to me. >> it's based on 50 percent of the total population groups as qualifying. remember that the base that they are starting from, these are folks that are already paying that deeply discounted fare. it's not a discount from a $66 fast

pass. it's a discount from a $24 fast pass. that's our best estimates. i think in terms of how the pilot played out, i think the revenue law ended out being less than anticipated. it's imperfect in terms of estimating. i think we know how many people are buying the passes but we don't know how many are buying the discounted pass. the estimates on the youth seem to be reasonably accurate. >> quick question for you. how are you determining low income and middle income individuals? >> it's based on 100 percent of median income. what we did for youth which is what we propose to do for anyone else to whom will be expanding is a self certification. we don't

have the means nor do we want to get into business of reviewing people's income tax returns. they basically fill out a form. i don't remember if it says write what your household income is or if we figure it out and we give them the data. they sign a form in terms of whether they meet the requirement or not. >> the complete honor system? >> that's correct. >> in terms of the muni service increase, this map shows how far reaching the proposed increases are that we would about achieving in the next 3 years. it covers the most heavy traveled lines.

this is really first in a really long time if not a generation enhancement of muni service. that's a quantity of service complimented by all the things that we are doing to increase the quality of service. i already touched on this. i don't think i need to repeat it. it's 27 different labor union contracts that covers 90 percent of our employees. there is only one that is not open for negotiations right now. we are in addition to the labor contracts as we talked about before, there are many staffing increases associated with the service increases that are driving our expenditures. so this is just where we are. we are going to our board with the proposed budget next tuesday. if they approve we'll is interested your way on may first. if they don't we'll need to schedule a meeting

because we need to get this by may first. we have a full hearing on our proposed budget here on may 15. if there is any other information other than you referenced already, please let us know. just with regard to some of the other activities that are relevant here, the last day to introduce the legislation for the november ballot is may 20th. our charter deadline for labor contract approval is may 28. we really won't know fully where we are until june. last day for the board of supervisors to place measures on the november ballot is may 22. those effect will take effect november 1st. because we are indexing the single cash fare, that means there is a lot more signage out on

every muni stop. we need to do that change and outreach. and of course election day on november 4th. there is more information for you should there be any interest. i wasn't planning on going through it. that concludes the presentation on item 1. if you want i can jump to item 2. >> why don't we do that colleagues, unless there is any question. i know the fun topic of sunday meters. i just want to know as you go into your board discussions, what's the current proposal. i know mayor lee has come out and so forthwith one suggestion. i know it's up to your commission and the board. what is the idea as of today? >> thanks. i shouldn't have left that out. i know there is interest in that. the mayor made it clear in his state of city speech that he thought

sunday parking was a concern to city san franciscans and issuing citations was a concern. we talked about options. the option is completely rolling back sunday parking to increase availability of parking spaces on sundays. it has achieved that one goal. second option would be to not enforce the meters at all, enforce the 4-hour time limit. eliminate the requirement to feed the meter but keep the 4-hour time limit requirement to try to get some of the turnover goal, desires. >> that would go back to chalking? >> it would go back to chalking and basically means our folks would be out there

chalking at the beginning of the period and after 4:00 starting to issue citations or warnings. so frankly i think that will have pretty limited impact. it's difficult generally for us to enforce 4-hour time limits. then the final solution would be to keep the system in place, but because we don't have all of our new meters in and because there is concern about people that don't understand the requirements, really redeploy our parking meters to more high priority needs. i heard a lot from your colleagues about double parking and traffic control on weekend and weekday rush and there is concerns about blocked drive ways and residential permit parking that we hear from the public that we are not enforcing. the ability to redirect those

other resources and the point of getting the citation on a sunday would be significantly diminished but not lose all the good transportation benefit and the policy that the program provides. that's the three options before my board. >> that would be just no enforcement? >> more or less. >> okay. all right. look forward to seeing where that one comes out. supervisor mar? >>supervisor eric mar: before you start on the other one which i know is 24 slides. thank you for the information and you are so transparent and thanks for the staff for providing this overview and what to look forward in the next 15 years to 2030. i really appreciate it. i did want to say as we start to talk about the service

improvements and other issues, i hope that you are also acknowledging all the seniors that are here from senior and disability action that are here to talk about the tremendous needs in our communities. i know you are really sensitive to that. on the bicycle strategy and plan, let me just say that i'm really appreciative of the breakdown as you are going to present, but i also wanted to say that among the bicycle advocates and street safety advocates i feel there is a tremendous urgency to make our streets safer and have a sustainable plan that is multi- modal and share with bicycles and pedestrians on our streets. there was a great report that there were many

recommendations that came out of it. i hope after our hearing we can talk about what some of those recommendations are and as far as plain for bicycle strategy. i know mr. bruso's report that of our bicycle infrastructure and historically there is less than 1 percent of our mta budget on paper that have been spent on bicycles. even though our goals are lofty. with your planning over time and more revenue coming in that we can start to address that serious weakness in our funding of the bicycle strategy. i also think that the goals of an 8-10 percent mode share are still a very ambitious. i'm hoping as we fund these improvements we can make much more progress than we have in the few years

as well. i did want to acknowledge from mr. bruso's report that we are falling short on goals. some key ones are, i'm looking at the report. the suggestion of the paint shop management of tracking system from the bicycle plan and also a number of other issues that were recommended from the bla report in december. i want to also just thank president david chiu for cosponsoring this because i know he's watching carefully how we are handling the bicycle strategy. with that, thank you for putting all of this information together for us. >> okay. thank you. supervisor mar and thank you for the

opportunity. before jumping into presentation, i support all of what you said and i do want to acknowledge we had a really strong showing from senior and disability action and community tenant association. there has been a lot of free muni for youth coalition and a lot of very strong public support. what i see it as public support for muni for people who want muni and need muni and want it to be working well. i think that's a great thing. i'm hoping we can channel some of that support and hope to get whatever we can for muni and the bicycle and pedestrian. i would love to see more funding in these areas. this is the best in terms of what we can scrape from different parts of the budget. we'll speak a little bit about the operating budget and where we've tried to really be as efficient and effective as we can. i would say that the urgency in the

em -- impetus is on all of us, not just the sf mta budget but the whole family the we want to prioritize more investment. hopefully with the measures we'll be able to do a lot more than we've been able to do with more. i also just want to echo your thanks to my staff. there are a lot of folks in the room and back at the office and out on the field who work really hard to make this stuff happen, not just to put these presentations together but to do the substantive work to make the presentations. a lot of people are very committed to working hard everyday to making the streets safer and finding funds to make the streets

safer. with that, i will try to go quickly. i know i have been talking for a long time. you said it's 24 items. you already touched on a number of items. i want to thank the budget analyst for their great work and help to guide us to be able to do better. the bike strategy which has been before this board or different committees of the board before was developed a couple years ago and we've showed our board directors of draft 2 years ago and worked with a very engaged group of people to work on the 8-10 percent goal to very tangible things to achieve it. one of the things that we did