directors. i'm here with michelle, our lead staffer on the re-authorization. she i believe will present the slides and i'll speak to each. and i appreciate this time on your program and thank you for having me and your leadership and your thoughtful deliberations today and always, particularly at this extremely challenging time. i'll note that the work that you all do and dr. tumlin and the whole staff is really nationally recognized as excellent. and with the t.a. i've been proud to support the sfmta transportation recovery efforts in many ways -- both locally and regionally and now nationally. we look forward to continuing this partnership with the hopeful developments now in washington, d.c. but as hopeful as we are about that, and we are, we do need to continue to focus on the transit funding crisis here at home and position ourselves for those new opportunities so that means looking at self-help.

i do appreciate, therefore, the opportunity to present on our sales tax program and the re-authorization process that our board has asked us to initiate. so, next slide, please. today i'll go through history and the background for the members of the public in particular who may not be familiar of the highlights of our sales tax, known as the prop k measure program. voter approved in 2003. last fall, again, our board asked us to initiate work to chart out a process for seeking voter re-authorization of the sales tax expenditure plan, which is approaching year 20. again, first it was the sales tax was first adopted by voters in 1989 but then re-authorized in 2003. both times we have seemed to be sac cellerated in our delivery of the major investments. so then in 2003, we were in year 13. now approaching 2020, we are in

year 20. so the good news is that the major projects that were in that program are mostly done or under construction. i'll get into those specifics in just a moment. and it's time to renew the plan. some of the categories that pay for investments large and small throughout the city, especially that sfmta leads as our largest sponsor, those categories are starting to run out of funds. so for many reasons it is a good time to be doing this, a necessary time, frankly. and it's also a wonderful tool for leveraging four to seven times its weight in other funds that we have been able to document over 30 years of administering the program. so next slide, please. okay, as far as overview, the voters did approve the prop k

expenditure plan that we're currently administering in 2003. it supersedes the prior prop c program and it set out a 30-year set of investments raising at that time estimated $2.3 billion to $2.8 billion. we collect about $510 million pre-covid as mentioned earlier, and, again, our 30th anniversary year last year we started to put together some sales tax websites and other information that i encourage folks to come to our website to check out. next slide, please. in terms of the structure, the expenditure plan does set out these proportions of funding as well as specific named projects. you will see here that transit is about 65%, 66% of the entire

program. yes, the sales tax itself is regressive, it's a very progressive program of investments that the voters have approved time and again. about half of these funds are maintenance. whether it's a transit or on the street and traffic safety side, para-transit is 8.5%. and that is the operating component of our program. i believe that our para-transit funds are with the sfmta program around the rate of 50%. and all of these, of course, are just, you know, there's so many needs, but we have been able to deliver a lot over the years. you know, matching our funds with sfmta's other funds and then using these as seed funds to prepare projects to compete for grants at the state and the federal levels. our expenditure plans do set caps for the maximum amount of prop k available for each of the

years. we have a 30-year strategic plans that lays out every five years to prioritize these needs and the use of the funds with all of the various sponsors. again, sfmta is our largest sponsor and partner here, but we also work with regional operators such as bart and cal train, and we have the water management authority, known as bay ferry and on the freeway side with the state parks at caltran. next slide. next slide, please, michelle. great, thank you. here's a snapshot -- oops if you don't mind going back -- right. these are just a sample of the many types of investments that we have funded over the years and matching sfmta's other funds and other grant programs, ranging from the big projects such as central subway and the muni forward network. all manner of street projects, we resurfaced -- and the

pedestrian and the bicycle projects. para-transit as i had mentioned. but really importantly the generations of fleet at sfmta. so all of the rubber tire vehicles we have helped to re-invest in and the new l.r.vs a couple years ago. and so, again, it's since 2003 it's $1.9 billion in total allocations. and this is a critical local source. and we are one of the counties that only has one of these half penny measures. some neighboring counties have two or up to three or four, san mateo and alameda and l.a., for example, l.a. metro has i believe that many as well. so it is an important strategic consideration as to how we can make sure that we continue to have this really important source spharsz authorizing it at the current level and to have

the board explore what additional half-penny might gain us as far as the investments and the benefits of the additional half-cent for their consideration. next slide, please. some of the regional investments that i have mentioned, in the bart, the shared muni/bart stations in the city are covered in our plan. caltrain as well as the ferry plaza and the like. so it's definitely a comprehensive and a multimodal, multi-operator program. and it also funds a lot of the invisible things that are so important -- the guideways, the communication systems and the control systems and the wires for the trolleys and the light rail. all of the important bones of a system, if you will, and that is something that is essential to our goals, of course, to operate reliably, safely, and efficiently. next slide, please. so in terms of how it fits in

with all of the other sources, every four years as you know, the m.t.c., the regional funding agency, puts together the plan bay area, our expenditure plan was the heart of our county-wide plan in 2004. and continues to be updated every four years with the plan b area. so, again, the plan has been durable and served us well. all of our priorities are in there, which is good news. and it assumes that our continuation of the half-cent, along with the leveraging of a whole host of other sources. so our county-wide plan is updated as part of the multiagency to connect to the long-range planning program. we are collaborating with sfmta on the transit modal studies and the streets and the freeway studies. all of these culminate in our county-wide plan this fall. and the expenditure plan is

meant to be the anchor of the strategy and consistent with what was adopted as far as the recent blueprint of the area. so it's a financial blueprint for us all. in terms of, again, targeting the measures potentially in june or november as our board will look at this together with you all and m.t.a.'s continuing next steps in terms of revenue measures, this timing is still open but we target a potential june measure. we are looking at just maintaining the current half-cent level, so not an additional level, unless, again, unless that half-cent that is additional becomes realistic for us. and that is a conversation that is still to come. but the idea would be to bring this new expenditure plan to the voters through the fall through an expenditure plan advisory process. we have the citizens sort of

committee that has guided us the last two times that we went to voters and our board will also put that process together with your input and hopefully your involvement as well. next slide. so why are we seeking this at this time? it may be, you know, perhaps evident to some, but it's really important to kind of run through the four areas. there's a number of reasons as we have discussed. all but one of the capital projects in the plan are either complete or under construction. but many of the 20 or so different programs covering all of the different modal areas are starting to run out of funds in the next few years. such as traffic enhancements or upgrades to major arterials and traffic calming and our caltrain capital contribution that we make on behave of san francisco. and establishing the new expenditure plans replenishing these areas and creating jobs, which is crucial to our economic

recovery. but it's true also that these programs represent ongoing essential needs of our residents, our workers throughout the city, and ensuring that we meet our climate safety and equity and transit first goals. there are, of course, new and emerging priorities, some which we have talked about today. and the covid priority is our foremost priority, but ensuring a state of good repair and trying to get to the $20 billion backlog that we already see on the transit side, working on the subway renewal and we're doing that together with the staff right now and also looking to the next generation active transportation network and our vision zero goals, of course, and achieving those through infrastructure, and programs as well as freeway management, which we haven't really done a lot in the past to figure out how we can get more out of our freeway situation, especially with the new 15, hunter's point express and the 8 and the 14

which might take advantage of the shoulder running buses on the freeways, coming into south of market. so a core principle, of course, is to also use the half-cent sales tax as a local match to compete for grants, to leverage the state and other funds. we have been able to show that it's been about on the order of four to seven times the sales tax itself over the years. so those are some of the reasons that we are pursuing this at this time. next please. of course, our approach is to ensure that we are building on the success of this prop k but making refinements and picking up new areas of need and ensuring that resilience, for example, is addressed. and that our vision zero goals and our equity goals are really infusing the next -- the design of the next plan that will very much start with the robust engagement process that we have learned so much through. things like our condition pricing study, so thank you,

director, for asking about that and i'll come back to that. and what the m.t.a. has done, the sfmta done through the bayview community transportation plan. so these are the things that we want to build upon, ensuring that we're hearing from folks as we develop this plan, addressing the immediate and covid recovery needs as i had mentioned that we currently only have about 8.5% of our plan addressing operating needs, mostly in the para-transit program area. but the question would be, should we perhaps build in a few years of operating support here and that will depend, again on all of the other conversation that you just had about how m.t.a. might be pursuing new revenues to address the structural needs and the current needs to restore service. of course long-term needs. so we need to work at all of these levels sort of at the same time strategically. and continuing to maintain our transparency and accountability for how we administer these funds and making sure that --

for example, we're taking care of businesses who if project goes beyond the anticipated schedule, you know, that we have a mechanism to help to be accountable and to help to address those needs. and ensuring the future fund planning for our next generation projects, big and small. so that's the engineering aspect of this work. next slide, please. so here's just a snapshot of our schedule. it's going to have a lot of work throughout the next 18 months or so. and we have started to chart this out, beginning with outreach here today. and we were just at our board last week and we very much seek your guidance and welcome your feed back on how the plan and the administration has been going as well as the priorities for that next plan. either today and/or throughout the next coming year. i'm sure that we're going to be having more conversations and

i'm happy to and back and to report back on our process. but essentially the idea is to check with our planning work and have an expenditure plan advisory committee in place by late summer to the fall. to bring them all of the different information that they may need to design the next plan and then report back to our board. it does need to come to the board of supervisors with our transportation authority board some time in the springtime of next year if we were to make the june 2022 election cycle. next slide, please. so speaking to the process, again, we are starting to do community outreach, looking at stakeholder and community interviews, understanding what the feedback is from folks and if they may not be aware of all of the things that we're doing, and trying to do education and town halls and making sure that we are having good representation for some of the

harder-to-reach communities, multilingual communities and stakeholders and building on the good base of work and learning that we've both had as far as our agencies in the recent period during the pandemic. non-digital means is very important as well. and joining those communities and meeting folks where they are. so i think that we're at the end of my presentation. next slide, please. we do have a wonderful website as i had mentioned called sales tax stories. that was celebrating our 30th anniversary and continuing and it is available for folks, and i encourage you to please visit that. profiles of about 30 projects and real san franciscans who are enjoying and benefitting from those projects ranging from as you can see some of the operators and all of the different folks who are using all of our multimodal investments and it's a really wonderful site to peruse if you

have time. so we're continuing to bead off the need assessment that sfmta has been developing in all of our sponsors and building that into the county-wide plan process and conducting outreach. again, it will be our near-term effort. and then bringing back the re-authorization process for approval it our board this spring. and then really getting going in the summer and the fall with, again, the expenditure plan advisory committee, advising us through the winter. and then hopefully taking some action in the spring to get the measure on the ballot. with that, i'm happy to take your questions. again, i welcome all of your input. and condition pricing as a final note, thank you for also having our team recently at the sfmta board on that. and the plan is to finish our study by late summer. and to bring that to the community and to our board, if they should decide to go forward with a given configuration, they would still need several steps

to go forward from there, including obtaining legislative authority at the state level. and gathering the funding, and seeking grants and doing the design and continued outreach and input on the policies. but the earliest that we're estimating that we could be underway with a program such as that would be in a three to five-year time frame. again, new york city is ready to go and we'll see and learn so much from them with the new administration allowing them to move forward through their environmental process. but the conversations are certainly accelerating i would say within san francisco and the bay area, los angeles, and other places along the west coast. but, again, that's the estimate that i would gauge at this time is a three to five-year period before we could see implementation of that program. thank you. >> chair borden: thank you. thank you so much for being here and i think that this gives us a lot of food for thought and i thought that specifically your point about some other counties have more than one sales tax measure going at the same time.

so with that i'm going to open up to our board of directors and direct hinze you have the first question or comment. >> director hinze: right. i have two questions. one of them is actually building on chair borden's comments where the counties that have multiple sales tax, i would say that each half-cent typically, like, allocated for certain types of projects or they just just one -- creating essentially one big sales tax? >> great question. i would say that for most part -- and there are about 25 sales tax counties, counties that decided to tax themselves in this way throughout the state of california. most of them are a broad program of projects as i have described that we have. a few named projects and then many categories of investments, whether it's transit and bike

and pedestrian and signals and the like. some of them have -- they do have special taxes, so one of the half-pennies in sainta clara, two i believe are for a project, whether on the capital or the operating side. so sometimes counties have proposed and gotten approvals on taxes for a specific project. i think that l.a. metro may have a couple of those operating type taxes as well. but the big one l.a. metro is recently a few years ago was like a huge program, you know. they call it 28-by-28, or 28 projects by 2028. so quite large and ambitious in some cases. but many of the ones around the region are similar to ours i would say. with the exception of the bart dos san jose one.