Transcripts For SFGTV MTA Board Of Directors 20240713

Participating via remote technology, please keep your microphone on mute so we dont get feedback on everything. Id like to thank people who made this meeting possible. Our secretary, roberta boomer, along with shawn, art, jack from sfgtv, the staff at the board of supervisors, carolyn and sophia. A lot of people worked to make this happen at this unprecedented time. I will say to our staff, from jeff tumlin down through the ranks, the response has been remarkable, and well talk more about this as the meeting goes on, but i just want to say thank you. You guys are emblematic about this city. Clerk announcement of prohibition of sound producing meetings at this time. There is no prohibition at this time with respect to this meeting. Item 4, approval of the minutes. This is for the minutes of march 17 regular meeting. Okay. Very good. Board members, as is always, this has been circulated to us in advance. I assume there are no comments, so at this point, i will ask first if there is any Public Comment on item 4. Miss boomer, do you see any comment on item 4 . Clerk thank you. Our moderator will check. So if members of the public would like to comment, please dial onezero if you wish to address the board on the minutes of the march 17 meeting. Moderator, please let us know when you are ready or whether there are any callers who wish to address. Caller there are no members of the public that wish to address the board. Okay. Thank you very much. Seeing that, well close Public Comments. Unless theres a motion from tfrom theres any comments, ill ask for a motion interactive talk mode. All participants are now in listenonly mode. Clerk mr. Director, you may proceed with the meeting. We had a motion from director torres. All those in favor, please say aye. Clerk mr. President , i need to do a roll call vote. [roll call] clerk mr. Chair, that is a unanimous approval. Very good. Would you call go ahead. Item 5. Clerk under communications. Okay. Would you please finish your portion of this . Clerk yes, mr. Chair, i will. All right. So this meeting is being televised by sfgtv. Please be aware that there is a 20to30second time lag, so if members of the public are watching, there will be a lag between what youre seeing on sfgtv and what you are hearing. If members of the public wish to make a comment on the agenda, the phone number is posted on the agenda, on our website, and i will repeat it during the meeting. Please make sure that you are in a quiet location, that you turnoff any t. V. Or radios, and if you are streaming the meeting at sfgtv, that you reduce the sound, and this will reduce any reverberations so that the board can hear you. If you wish to comment on a particular item, the chair will prompt you to press onezero, the chair or i. This will add you to the speaker line. You will be queued up in the order in which you president onezero. There will be an auto mated voice that tells you when it is your turn to speak. When your microphone is unmuted, you will hear us to ask you to state your name and state your comments. I will start timing your comments. When you have 30 seconds, i will say 30 seconds. When your two minutes are up, your microphone will be put on mute. I will repeat these instructions for those joining the meeting after the start. Mr. President , that concludes the introduction. Item 6, items or introduction by Board Members. Members, if you would like to introduce items, you can signal me online. Director. Director eaken directdirecto directdirecto director eaken . Director eaken director eaken i think at a minimum, theres sort of two phases at this challenge, but just wanted to say that ive observed this phase during this crisis. Many cities around the world are creating more space for safe walking and biking to make sure that people have enough space to use those modes of transportation in a way thats also adhering to Public Health guidelines, and its remarkable to see how many cities have made that essential space for walking and biking. The second is as we think about recovery, i talked to a colleague from another city talking about how pollution is down, traffic is down. I havent seen the numbers, but i would presume that vision zero and accidents and fatalities are down. So the thing is, when we go back, how do we get past the largest source of death and Greenhouse Gas pollution in this country . [inaudible] in terms of how do we come back and be more strong and equitable than our Transportation System was before this crisis . Wonderful. Thank you, director eaken. I certainly look forward to watching you push forward those ideas, no pun intended. I see no other comments, so well move onto the directors report. Director tumlin, crazy first couple of months for you. You are unflappable. Very impressed with how youre dealing with this. Thank you for taking care of our professionals and making sure that theyyre in the loo and looked after. Thank you very much. The floor is yours, sir. Thank you, director heinicke. Who would have thought that i as a lifelong transit rider and resident of San Francisco would be, in my first three months on the job, eliminating muni lines and telling people not to ride muni to save those spaces for someone who has a required or necessary trip . So theres a lot of work that weve been doing over the last few weeks that feels like a year and a half because weve done a year and a halfs worth of work in the last few weeks. Were very fortunate in the city of San Francisco under the leadership of mayor london breed and especially under the leadership of the department of health, under the leadership of dr. Grant colfax, we knew what was coming, and the city acted quickly as most other places. And as a result, San Francisco is in better condition than so many other places around the world. Here in San Francisco, we watched what was happening in wuhan, and even what was happening in seattle, who was a week ahead of us. San francisco infection rates tracked neatly in response with those other cities in a similar timeline. This allowed us to do scenario planning and get ahead of the crisis before it hit us. We knew that things could get very dire indeed. Wuhan shutdown their entire system. Our city did its efforts for a sheltering in place that didnt include a complete lockdown, but we didnt know what was coming at us. So we looked at very carefully at where were all the vulnerabilities in our system . So the very first thing we did was shutdown the cable car and histor historic street car lines. We did this to protect our drivers. On the historic street cars and cable cars, theres no separate space for the driver, so we shut those down very quickly and waited for bus replacement. The next step was the decision to shutdown the rail system. This was hard for us because of the capacity offered by our trains and the relative protection that our trains offer our operators, but our trains are not resilient. We were carefully watching as an increasing number of our workforce was being exposed elsewhere to somebody who was covid positive and needing to go into quarantine, and then, we started getting our first positive test cases at the agency. The rail system was unique in that there are a relatively small number of Mission Critical positions where if we missed just one or two of those people, it would have been difficult to meet the maintenance challenge. So as our ridership was plummeting, and as we were preparing for what we knew especially love blacks and latinos, love okay. So that was rude, thank you, sfgovtv. So the decision to shutdown the rail system was also driven by our necessity to increase cleaning crews. We increased them where they were needed. Our crews were cleaning enormous rail stations. Our [inaudible] sfgov, is there a way for restricting access to this call or at least cutting off sound . Hopefully, youll be on that. In any event. Is this system in any way related to zoom . Just having the guy doing me, maybe one or two or three [inaudible] and we can do with respect, too, too these this is david. Ive just unmuted all. Go ahead, jeff, and unmute yourself, please. All right. Thats excellent. That should work. So once again, one of the other critical reasons we shutdown the rail system was to be able to reallocate our car cleaners and station custodians in order to direct them to do more thorough cleaning for our buses and for our facilities. [please stand by]. We knew that we needed to have a system that was going to be resilient to an unpredictable amount of change. We also knew that we had to direct more service to our highest ridership lines because were having having a challenge onlines like the 14 mission, the 38 geary, the 8, and the 9. We were having problems with passenger crowding and social distance. We were leaving people behind, and having more people on our bus than would meet the d. P. H. Guidelines. In order to direct more service at the lines that need it the most, we especially needed to cut basically all of our lower ridership lines. These were painful cuts. So our effort was to look at the data. Weve got great data, and we new the lines that were experiencing cuts, and we knew the lines that were experienced the highest riders. So we stripped Everything Else out and started there. The next set of services were Critical Services. Where are the Frontline Services . Where are the Grocery Stores . Where are the Critical Services . So we wanted to make sure that the lines were served not with a Critical Service right in front, but within a tenminute walk. Next, we wanted to make sure that all neighborhoods were connected at some level, and then, most importantly, we ran the whole muni equity strategy to make sure that we were directing the most service to the neighborhoods with people who have the fewest alternative choices. In a few wealthily neighborhoods, people with limited Transit Services, that means that people can drive. And director heinicke, we gave you permission to drive to our last Board Meeting. Were asking those san franciscans who can drive, please drive, those who can bike, please bike, and those who can walk, please walk, identifying those parts of San Francisco that have the fewest choices. So the map is a map that we released on monday, and that were preparing to put into service tomorrow morning. It is grim, and if we can consider this a sign of success, we have heard from people in every single San Francisco neighborhood complaining why their neighborhood was singled out for stripping away service. So weve cut everywhere but held onto the Critical Service that san franciscans most need. Were now, today, spending a lot of time doing some additional service, particularly for elderly People Living in hilly neighborhoods, where weve removed a lot of service, for people who necessarily havent signed up for our paraTransit Service. Who can walk a block to get to service, but who cant caulk cant walk Transit Services. Were looking at for 6, you can get 30 of cab service, and looking at ways we can expand geographic coverage of those service to Service People who would otherwise be left behind. This would be in a time where were experiencing significant financial losses but a big help to others who are greatly in need, including our taxi drivers. I can also point out that even though were making these Massive Service cuts, these service cuts dont make us money. We continue to pay our operators. We offer very generous sick leave terms to our operators. We want to make sure that our operators that are feeling sick dont show up to work. Our drivers are frontline workers that are continuing to go out there and put themselves at risk for the benefit of our public. Now our service is stripped down, weve got better availability. Our cart cleaners are cleaning more efficiently. Were getting more guidance from d. P. H. On how to do that in the most efficient way, not only for our vehicles but our facilities. Were especially grateful for the advocacy by the citys Emergency Operation center, and particularly mayor london breed, who are seeing Bus Operators and our p. C. O. S and other frontline workers as First Responders, so we are getting our crew on the list for additional personal Protection Equipment as well as access to early coronavirus testing as well as access to overnight hotel rooms or for people who need to people working but not in selfquarantine. Were so grateful to the city to be able to offer these benefits to our workers. One of the struggles in all of this has been communicating the intensity of change both to the public as well as to our workforce. Ive been trying to do a threeminute video directed to our informal or internal workforce every single day. If you all like, we can send you copies of those. Roberta may have been forwarding them to you. They are our best effort at trying to keep up with the essential news as it arises and also to create a standard of deep transparency and truth. One thing we continue to emphasize as an agency is that we can only get through this if we maintain pretty radical transparency and truth because its going to require real trust. Were going to have to trust each other, and theres going to have to be trust up and down the chain of command in the organization in order for us to truly come together and make this work. So thats a summary of our health and service impacts. As all of you know, this Health Crisis is quickly becoming an economic crisis well, its already an economic crisis. Almost all of our sources of revenue, parking fees and fines are down to nearly zero. Transit fares are down by about 90 , and our biggest source of revenue, which is the general fund, is being walloped by the hotel tax and sales tax and business and transfer taxes. So the work that were doing now while at the same time developing this budget is to figure out how do we deal with our Financial Reality while minimizing all impacts to our workforce and preparing ourselves and the city for a very rapid recovery . Thanks Speaker Pelosis office in particular, we will be receiving a fairly significant amount of money from the most recent federal stimulus package. We are now having conversations with m. T. C. About how best to divvy that up, including posing really uncomfortable questions to the regional agency, including to what degree should we divvy up the agencies money, and should each dollar of financial loss be seen the same across all agencies instead of looking at the stimulus package as an opportunity to consider equity and how we spend our money. Specifically, should we be directing more revenue at the agencies that serve passengers who have the fewest choices . All transit properties throughout the region are going to have to make service cuts in order to balance our books. Should we all make the same percentage of service cuts or should Services Like tridelta transit, which carries an overwhelming share of transit dependent riders or a portion of the muni service, like were operating now. Should we look at those as more valuable than Transit Services that are designed to provide an alternative to driving for people who do have a car . So we are leading that conversation at m. T. C. Along with some of our sister agencies, that how do we put the system back together again in a system that is more equitable, more regional, and better connected . Other things that were working on, as two of you directors have already told me, to never waste a crisis, and so theres another opportunity that were taking advantage of in this crisis, which is to further our efforts at cultural change within the agency. Theres nothing like a crisis to bring people together, and t the many of the previous cultural changes in the agency that got in the way up and down across the agency and limited information in silos, that is breaking down. People are having open communication. People are collaborating across silos. People are getting together to offer Creative Solutions to problems rather than just complaining about the problem and blaming someone else for it. Were also seeing many people stepping it up, going above and beyond the call of dutiy. Five of our transit operators, have been have volunteered to transport persons under investigation and covidpositive individuals for the department of Public Health. This is work above and beyond the call of duty that reflects the commitment to Public Service throughout the agency. Taxi driver like corey lamb have been providing essential needs for people with disabilities. Our transit drivers have been helpful in getting people to the hospital and people with disabilities. Our car cleaning crews have stepped up like heros. Myra phillips, who oversees that unit, has been phenomenally adaptive, trying to use her services for the betterment of the agency. Cristina leon is connecting with people in her neighborhood, trying to help people who need help buying groceries. Traffic has rigged up hand washing stations and has m macgyvered up solutions. We are coordinating closely with a whole variety of city departments to help solve problems. Our parking control officers have basically been the handy men handy people for the entire city, being used in all variety of services as essential Disaster Service workers. So thats a very quick summary of whats going on. As director eaken said, were also starting to think about how do we take advantage of the time period between the shelter in place order being lifted and full economic recovery in order to get an enormous amount of work done and get San Francisco ready for rapid recovery and also to be a Better Agency . Were looking forward to that time period where hopefully well be able to get some money out on our streets, where hopefully, well get some money directed at essential projects, and directing some other money at essential traffic systems. We want to make sure that we take advantage of this time period. We want to use this time to educate about reducing Greenhouse Gas emissions and help in what will be an increase in jobs in a more civil San Francisco. Finally, i just want to close by thanking all of you for your hard work, the way youre working together, the way were allowing governance to continue and our public bodies to meet despite the shelter in place order, and i really, really want to thank personally mayor london breed for her efforts to ensure our frontline workers are treated with the respect that they have earned by showing up and fighting for the city in this time of crisis and for the ongoing leadership of the Public Health, in particular, dr. Grant colfax, who saw this coming, who convinced the mayor and all of us rest of the Department Heads that listening to the scientists and doctors early in this scifi movie was going to be a wise decision. So thank you to all of them. Please get the word out, once again, that muni is only for essential riders and people making essential trips. Thank you. All right. Thank you, director tumlin, for all that youre doing and that very comprehensive update. Certainly our mayor and i think the former mayor can be a source of celebration. My understanding, miss boomer, is we have five people who would like to make Public Comment on director tumlins report, is that correct . Roberta, you appear to be muted. Clerk mr. Chair, we have five people on the phone line, they may or may not wish to provide Public Comment, however, at this point, we need a longer pause so our moderator can connect the system in the background, i believe, following the earlier disruptions. Okay. So well wait for that, and Board Members, be advised that once we get Public Comment, well turn it over so if anyone would like to ask director tumlin questions or if you have any comments, you may do so through chat as you always have. Clerk the moderator will let us know when we can go forward. My plan is to wait and not go forward with anything until we have Public Comment. Is that all right . Clerk yes, mr. Chair. Miss boomer, are you in contact with the moderator so you know whats going on . Clerk yes, mr. Chair, i am in communication with him. So he asks for our continued patience. There is an issue on his end. Well, if that issues going to persist for some time, we can proceed with director comments. So is there an e. T. A. On when Public Comment can be opened . Clerk i will ask. Hold on just a moment. All right. Mr. Chair, he needs five minutes. Very good. So director rubke, you have a question for director tumlin, please proceed. Thank you. I was wondering, in connection kind of following up on what director eaken was talking about earlier, if any consideration had been given to opening up our streets, certain streets, select streets for biking, walking . I think certain cities have done so during this shelter in place period, and so i was wondering if staff has looked at that as an option . Yes. So we are looking closely at what is going on around the world, including many of the not just the successes of that, but also the failures. New york had a tragic failure, not surprising, and their most recent efforts had been written about. Some other cities have had success, but in many ways, problematic success in that open streets became an attraction in and of themselves. So here in San Francisco, were been waiting to see if our efforts to manage the problems that weve been experiencing in Golden Gate Park and at ocean beach and marina green to be resolved before expanding that line of thinks. So these are questions right now that were exploring with rec park and the whole Emergency Operations center. Can we learn from the efforts of other cities to create these spaces but manage them in such a way that they dont become too successful, and also manage them, design them in such a way that dont require putting our own workforce at risk or violate the shelter in place order because of the amount of management that is required. So stay tuned on that. Well likely be getting some more answers later this week. Very good. Ive been told that were up for Public Comment. I know that theres some other directors that want to ask questions, but i want to get to Public Comment, reminding the public that this is Public Comment on director tumlins report only. Clerk members of the public who wish to offer Public Comment on director tumlins report, please press onezero, and you will be queued up in the process. Mr. Moderator, would you please let us know when you are ready. If there are members of the public who wish to address the board under these comments by director tumlin, please press onezero now. Caller there are members of the public who wish to address the board. Clerk thank you. First speaker, please. Yhi. Please give us your name, and your two minutes will start when you Start Talking. Hi. My name is hayden miller. First of all, id like to thank you guys for all the work that youre doing during this pandemic, but i just wanted to say, you know, while what were doing is great, i think theres possibly for improvement. Like, a. C. Transit has significantly lower capacity on their buses, and so making sure our operators are safe. And maybe also a physical barrier in the front of the bus. A. C. Transit has used caution tape. So theyre still using wheelchairs to board through the front of the bus and having the seats flipped up and only using those for riders with mobility devices. Thank you, mr. Miller very much. Its good to hear your voice. Miss boomer, the next speaker, please. Clerk next speaker, please. Hi. This is jennifer jorry, and im calling with a suggestion to make the buses safer. In taiwan, they have a clear plastic curtain around the driver of buses, and i have a long time professional manufacturer in San Francisco who is willing to make these plastic coverings for the muni bus drivers to make them more safe, and they would be more of a divided off area. He wanted to get this suggestion out there to make this area safer. Thank you very much for your comment today. Actually, director, if i may, id like to point out, at sfmta, were unique in that we do have a plexiglass barrier for our operators, and weve made the barriers mandatory. Weve also looked at extending the barriers, but theres no way we can do that without endangering the drivers safety. We take safety very seriously. It is our top priority. Clerk okay. Next speaker, and your two minutes will start when you Start Talking. Clerk next speaker, start speaking, your two minutes will start when you start speaking. Moderator . Caller it appears theyve dropped off the call. Clerk thank you. Next speaker, please. Hello. Please state your name. Your two minutes will start when you begin talking. Hi. This is joel kamisher, a School Crossing guard. I understand that you wont fund our 20hour program because of the funding deficit, but i do believe when this is over, our traffic levels will be very high. I hope we can be funded again. I also do believe there are a lot of guards who would want to do that. So thank you and good luck. I dont envy you being in your position, having to make all the cuts that youre making. I hope that someday we can get back to normal. Wonderful. Thank you for participating. You are absolutely a part of the group, and thank you for keeping our children and pedestrians safe. Next speaker, miss boomer, please. Clerk next speaker, please state your name. We will begin your two minutes when you begin talking. Good afternoon. This is aleta dupree for the record. Long time no see. Let the record reflect my pronounces are she and her pronouns are she and her. Im looking at the map, and im concerned because the number 28 which runs along the sunset has been taken out of service. And thats an area with some really steep hills that lead down to sunset boulevard, where the 29 runs. Having lived in that area in the past, its a very difficult climb to gobetween sunset and 19 avenue. So i know that this is a living document, but 19 avenue is a very busy route, and i hope that when we look at this, we can serve 19 avenue to cut down that gap. Other than that, i appreciate all that youre doing, and i look forward to the continuation of this meeting. Thank you. Thank you for your time today. Miss boomer, next speaker, please. [please stand by] Transpo Transpo transpo. Moderator, please close Public Comment. I will let the board know when you can proceed. All participants are now in interactive talk mode. All participants are now in listen only mode. Mr. Chair, you are free to continue with the meeting. A steve, the floor is yours. Thank you, mr. Chairman. I think one of the key questions were all wrestling with is whether were going to go back to normal after this lockdown is over or whether were going to go forward to a new normal. I think the new normal is far more likely if we have more than one of these lockdowns in our future, and we very well might. Jeff, i know youre worried about 10,000 thing, but let me just add one more to the inbox, and that is whether we have succeeded too well in scaring people off the bus because i do worry that when the lockdown is lifted, were going to have difficulty attracting some people back to transit. Theyre going to associate in their minds distance with safety. And look, transit relies on proximity. Thats how it works, so i certainly hope you can do some thinking about that, and ways in which we can encourage people to come back. And whether thats cleaning the vehicles, whether thats masking or other protection on the vehicles, whether thats, you know, maybe buying different kinds of vehicles in the long run. If a new normal is what were exiting to, i think those are really critical conditions for us to think about. Director, you are not adding a new item to the list of things to think about. This is a topic that has been top of mind as we start to think about setting our ourselves up for the recovery. And thats going to require not only taking advantage of the post shelter in place orreder to invest in speed and reliability and Quality Improvements to transit, but also to think about how he tell stories about transit. About how he celebrate proximity again because that is going to be necessary not only in order to attract people back to buses, but also to attract people back to restaurants and bars, right . San francisco thrives because it is social. It thrives because it is fun. How do we bring a sense of sociability and fun back to transit and back to the entire city . It will be an essential element of everyones recovery. Very good. Thank you very much. All right, director torres. Thank you very much. I want to thank the mayor for the tremendous leadership in our city. It takes a leader to be tested in a time of crisis, and weve seen that she has been and continues to be and fulfills her leadership duties so well. Im so proud of her. Im proud of you, malcolm, because of the leadership you provided as chair of our board in keeping us together during this very difficult time. And to jeff, every day im reminded what a great decision so i just want to say thank you to all of our First Responders and clearly to all our staff within the agency. Our doctors, our hospitals, our nurses, our caretakers. Were all pulling this together. I think that the people of San Francisco appreciate that we may not be able to solve all the problems at once, but at least were trying to the best that we can do as they are in trying to survive during this crisis, so thank you. That was very much appreciated and wonderfully said, senator. That is gracious of you, and i think you have echoed the thoughts of the entire board and in our thanks to the mayor and also to the director. Director eaken. Thank you. I will just pile on my thanks to director tomlin for your steadfast leadership during this very, very difficult time and i thought your report was excellent, so thank you for that. My comment actually kind of after and comment and is about open streets and walking and cycling and transport. And the response provided about the concerns of opening the streets and recreational and areas of celebration and coming together and those are valid concerns. And i think were at times talking about what we could do to make especially as building and infrastructure and people come back and i am hearing concerns about keeping transit in the future from young people. And so given the resist and given all of the excellent data that you spoke about where we know where people are riding transit. We know where they want to go. We were able to use that data to prioritize certain routes v we been able to look at the data about where people want to go and think about the parallel bicycling routes and walking routes that we might be able to expand upon, build, strengthen, create, protect, whatever you want to call it, so that if were in a place where we ever cant take as many people who want to ride the transit routes as were able to offer you said people are getting left behind. Or People Choose not to ride transit because of concerns right now, real or perceived, that they would have a safe and comfortable for all ages and abilities and bicycling or walking experience in parallel to that route. I just think this is a really fascinating opportunity right now to think about how we use that data so that when people when we come back or even now, its just as safe and comfort to believe get on a bike or an electric bike to get over the hills that one of the commenters was speaking about as it is to ride the bus. Yes. So weve got good data about travel patterns, not only for existing bike use but also where that pent up demand would be if only there were a safe facility. And in San Francisco, its not hard because of the topography. And in fact, there is its quite fascinating if you think of San Francisco as predominantly a streetcar city, and cable cars shaped a lot of things early, but for the early 20th century, San Franciscos fabric is really late 19 and early 20th streetcar city. And the requirements as streetcars. And so the ideal bike network for the city follows the streetcar network of 1940 really. And so thinking about linking up where our Neighborhood Centers are and all of which are along a former streetcar network and former streetcar street. And how to connect them together and how to connect them together in a way that thinks early on about the conflicts between our desire. And along with the protected bikeway for that is what San Francisco has been doing for decades. What im looking forward is the period of time when we can finally implement the work that my predecessors have done, but where the politics are aligning towards being in favor of, and i am going to be reliant upon all of you to help us with the politics of change, and there will be no better time to do than in the Recovery Period right after shelter in place is lifted and particularly if we have the ability to release the Quick Build Program to make the transit and biking and microability work in San Francisco. Great. Some sort of one final comment on that. To me there is a material difference between a street like Market Street that we have prioritized for walking, biking, and transit and a valencia which is meant to bring people together and congregate. And i think the public concerns are with the valencia type of event. Whey am interested is if there is a way to look at streets that maintain Transit Service and achieve the goal of the core transit routes always out of traffic, but also provide space and very low stress bicycling and walking spaces without necessarily the congregation concerns that the Public Health experts are telling us about. Thank you very much, director eaken. I dont see any other directors who have raised their virtual microphones. And so with that, we will proceed to item number 8. Ms. Boomer. Well, item eight is the citizens Advisory Counsel report. For some reason we cant hear from ms. Boomer, but we have the report in writing very good. Sorry. So mr. Chair, the Citizen Advisory Council did meet last thursday, and they have one recommendation for you today that is the sfmta recommends the fiscal year 2021 and 2022 operating capital and consolidated budget proposed as presented to the cac on that date be adopted. And that is their one recommendation from the meeting. Very good. Okay. Assuming there are no director comments on that, do we have any Public Comment requests for item number 8, ms. Boomer . Members of the public, please dial 1, 0 if you wish to make a comment about the recommendation. When it is your turn to speak t system will prompt you automatically. Your conference is now in question and answer mode. To summon each question, press 1 and then 0. Mr. Moderator, please let us know when you are ready. There are no speakers for this item. Thank you, mr. Moderator. Please close Public Comment. Mr. Chairman, i will let you know when the meeting may proceed. Thank you. All participants are now in interactive talk mode. All participants are now in listenonly mode. Mr. Chairman, the meeting can proceed at this point. Very good. I think well pause on Public Comment on items not on the agenda while we work out some of the technical issues. All right, mr. Chairman. We will return to that item. You are moving on now to the consent calendar. These items are considered to be routine unless a member of the public or a member of the board wishes to sever an item and discuss it separately. I will have to i will read the items and please be advised that we do have a request that item 10. 2 be severed and considered separately. So youre remaining consent calendar actually, mr. Chairman, at this point because we dont know if there is a member of the public who wishes to address the board, i suggest that we pause briefly and ask if there are any members of the public who wish to address the board on a consent cal der item and just take their comments then and there. Very good. All right. So if the moderator can open for Public Comment. This would be Public Comment on any aspect of item 10. Yes, on any consent calendar item. This includes the approval of various parking and traffic modifications. This also includes 10. 2 has been severed. 10. 2 has to do with authorizing the mta to deal with the potrero yard modemization project. And 10. 3 is the Title Vi Service Equity Analysis of eliminating the 83x midmarket express service. 10. 4 adopts the muni equity strategy report for fiscal year 2021 and 2022. If members of the public wish to address the board on any of those items, please dial 1, 0 now. There are members of the public who wish to address the board. All right. First speaker please. You have three questions remaining. All right. First speaker please. Please state your name and we will start your two minute when you Start Talking. These are for items on the consent calendar. First speaker please. An it appears the caller has dropped. All right. Next speaker please. If members of the public you have one question remaining. This is barry in toronto. I tried to get under Public Comment. If i may speak under that item, i thought i hit 1,0. It is not fair and the system is kind of messed up and the first time you are using it under the system. General Public Comment has not been called. This is on the consent calendar. It hasnt . Okay. The chair has postponed general Public Comment, thank you. Members of the public, this is for items on the consent calendar only. Mr. Moderator r there additional speakers . You have zero questions remaining. Thank you. Please close Public Comment on the consent calendar items. All participants are now in interactive talk mode. All participants are now in listenonly mode. Your line is now muted. Mr. Chairman, you are free to proceed. Very good. Okay. We have a request to sever item 10. 2 which we will address in a moment. If i could entertain a motion on the remainder of the consent calendar . So moved. Is there a second . Second. Very good. So mr. Chairman, if i with do a roll call vote, please, for the consent calendar items. What i might do before we go to that, lets go ahead and see where we end up with 10. 2 as well. Who requested the severance of 10. 2 . That is me, mr. Chairman. How am i not surprised . Great see the your face, steve. Floor is your. Thank you. Colleagues this, item is seeking authority for the staff to seek from the board of supervisors a project specific authorization to proceed with a joint Development Procurement strategy for the potrero Modernization Project which includes the bus facility as well as housing at the same site. My question really is whether were asking for too little here. Given the long list of assets that the m. T. A. Has that are i think amen to believe joint development, it would seem to me its worth asking even if were told no that we would like a general grant of authority for m. T. A. To utilize that particular procurement strategy in locations other than potrero. Give us three or five slots to use in procurements around the city. The question is, could we direct staff to seek Broader Authority or more than one project specific authority instead of having to return to the board of supervisors each and every time . So i love this question, if i may join in. So the only project that were ready to move forward on and were actually ready to describe a specific construction strategy is potrero because thats where we have been doing the most work. Our real estate plan, though, does include looking at additional areas and particularly kirkland and prosidio that we would move on to next. So we certainly love to take up later and to bring to you our overall real Estate Strategy as well as get your guidance about how we might be able to advance that strategy more quickly within the staffing constraints that we have as an agency. Now is a particularly good time to take a close look at munys Real Estate Holdings as Construction Costs come down dramaticcally and as the possibility of a capital stimulus package is out there either from the federal government or the state government. This would be a great time for us to literally capitalize upon our Capital Assets in order to help us both create an ongoing operating revenue stream based upon a real estate assets and also help us to address the housing shortage that our own work force experiences. Mayor london breed has asked us to very much consider dedicating the housing that is built above the potrero yard for our work force, which solves multiple problems all at the same time including dealing with the fact that some people even though they know they are moving on top of a bus yard may later complain that bus yards are, in fact, noisy facility where is the buss are coming in very late at night. So i dont know, director heminger, does that answer your question . My preference would be to move forward with this item now so that our project doesnt get stuck, and then have you hear later ant our overall real Estate Strategy and provide us direction there. Director well, jeff, i think i can go along with that because it sounds like were headed in the same direction. I do think it will be worth our while to get a more general or additional projects authorized or were going to get nickel and dimed. And look, we have had a lot of conversation at the board about why does it take so long to do stuff . And one reason it takes so long to do stuff is if you have to go back each time and get a project approved instead of getting five approved or a general grant approved. So lets say i recede on this one and as long as youre committed to coming back with a broader and more aggressive strategy, im all for it. I like that idea and glad you are pushing us to do more, to do it better, aened to do it more quickly. In light of that, unless there is anyone else who wants to comment on the consent calendar, and i dont see raising the virtual microphones, i will ask for a motion on the entire consent calendar so we can do one vote for it. So moved. Second. Very good. Director torres has moved. Director heminger is second. Ms. Boomer, please call the role. Director borden. Aye. Director eaken. Aye. Director heinicke. Aye. A director heminger. Aye. Director rubke. Aye. A director torres. Mr. Chair, you have a unanimous vote. Very good. Moving on to the regular agenda, item 11, presentation and discussion regarding the San Francisco municipal transportation agencys fiscal year 20212025 Capital Improvement program in the amount of 2. 5 billion for 155 projects within 10 Capital Programs including transit reliability, street safety, state of good repair, facility, taxi, system safety, and accessibility. So before i introduce our budget lead, i want to point out that the cap l that budget is very much a part of our resiliency effort in order to weather through the Economic Impacts of the covid19 crisis. Having an adopted Capital Improvement program sets us up very well for any capital stimulus money that might be thrown at us whether thats in the federal government, the state government, or anywhere else. This budget, obviously were not going to spend all this unless the money is in place, but having it adopted provides the framework that allows us to act quickly. So our planning and engineering teams are using this shelter in place time to frantically put together Shovel Ready Projects so that San Francisco can act quickly and grab whatever resources there are available out there. It will be important for us to be ready to receive capital money in order to be able to use that money, in order to save our work force, particularly our planners and engineer who is can be funded through Capital Projects even if our operating resources are scant. So thats this budget is very much a part of our resilience strategy. And with that, id like to turn things over to jonathan who can provide the presentation. Good afternoon, directors. Jonathan ruers, senior budget management director with the agency. I am going to share my screen so you can see the presentation that we have for you today. This is a followup and hopefully it will pop up in a second for you. I will go into present mode. This is a followup to our budget update in march in which you ask for a more detailed presentation on our fiveyear Capital Improvement program. So just very quickly well cover the Transportation System and its needs in the presentation. Well cover Asset Management and how we have taken an Asset Management approach to the development of our fiveyear Capital Improvement program, and i will cover the proposed improvements that are in this current fiveyear c. I. P. Which will come forward to you on april 21 for adoption. Just to bring us back, we always start with the sfmtas 20year capital plan which is a financially unconstrained document. This was reviewed by the mta board last fall, so its really meant to identify the total needs for the system and what we are trying to achieve. At the end of the presentation i will show you we sort of grade ourselves on how well we do in each fiveyear cip cycle. We also do it to give a sense to both the public and the funding partner what is the Transportation System in San Francisco needs so this document also feeds into plan bay area within the region, twn mayors Transportation Task force, and within many other planning documents for our federal partners. Just to remind you, the capital plan and the current one is from 2017 and in september the m. T. A. Board approved an update in 2019 that wasnt a complete redo, meaning we didnt add a lot of new projects or a lot of new program proposals, but we updated the costs and the needs, and we restated some things based on updates that we had within the agency. And moving on to slide five, the 2017 capital plan had a total need of 21. 9 billion identified in the 2019 capital plan, we had a total need of 30. 7 billion, and that was an 8. 9 billion increase between the two years. I will just state for the record that is unusual and so we have got an lot of questions to why it increased so much over two years, so why did that increase happen . Here are the main core reasons with a little bit of detail here. So with regard to vision zero and our project, with an update based on actual costs within the field. And specifically, the cost to do major curb to curb Street Projects. We have done a lot of lowhanging fruit when it comes to vision zero and a lot of the upcoming programs and projects are substantial civil improvements which are higher costs which were updated in the capital plan and with an update to fleet and facility needs, with regard to the converging to an all electric fleet. That was one of the reasons we saw the needs increase. We are seeing costs increase on traffic signal projects of up to 300 , and so based and our experience over the past two years, we wanted to right size the cost of traffic signal project specifically street signal and sign related projects. We increased and looked at our needs with regard to state of good repair for the transit skyway system and that is always something we look at state of the repair and the overall needs. As we have done specific assessments and ultrasonic whale testing that show where is to make improvements on the rail system, we made updates. We didnt want to include, we have not yet completed the correct sf process, but we know that there are going to be a number of recommendations that are going to come out of connect sf. The things we didnt know about, i. E. , the next step in muni forward, we added a total need to account for what we think will be coming forward to you if the future. The next slide, slide seven, shows the total increase, and you will see as i have noted the biggest increases 100 on streets, 158 on Traffic Signals and 31 increase on facilities. I will highlight those for you on slide eight. Again, this is a reflection of the total need. We cannot afford 30 billion. We dont have the resources for that. But this helps us both to prioritize strictly at a policy level to what is important to clearly communicate the physical needs and the Capital Improvement needs of the Transportation System in San Francisco and it helps us grade ourselves on how well were doing using flexibility funds or designated funds to meet the needs of San Francisco. So the capital plan is one component we use in the development of the fiveyear cip and again, financially unconstrained, so and these are the plans that numerous agencies across the city consolidated that we think the system requires to get it to to a system of excellence as i like to say. The second element we use in the development of the Capital Improvement program, and this cycle and post the last federal transportation bill more and more we are using specific Asset Management data to make decisions especially priorization decisions about investments in the Transportation System. When we are in a fiscally constrained environment, we want to use our Asset Management concepts and data to make decisions. And year over year we other Getting Better and better at doing that. As an example, in this fiveyear Capital Improvement program, we implemented a tradition assessment program. This takes us beyond your useful life replacement and total cost, but starts to look at the physical condition of those assets and the operational condition in the field. We have sense developed a 10year Asset Management strategy. We are currently in the prioritized phase to look and using the inventory and the data we have in place, we make decisions about investments, and later we will assess the impact of those specific investments on the Transportation System. Every year the sfmta produces a state of the repair and and when that is completed, we will bring that forward to the m. T. A. Board, but we have completed this report since 2015, and it is i like to say it is the state of the practice. And i think were all very proud of the work we do in this area, but again, its that score card and essentially how are we doing with regard to the state of good repair of the assets in the system . And slide 12 covers the scores. We use term models and the transit equipment requirements model is something developed by the f. T. A. And we have been using this back to 2010. We break assets up into two specific categories, and all other assets for performance management, and all assets to the very left on my screen. You will see between 2014 and 2018 that just regarding all assets, were seeing generally stable and you will see a tip up, but generally the replacement cycles are holding steady. State of good repair is considered generally a term score of 3, 2. 5 to 3. You will never have a score of 5. The only time you have a score of 5 is if you buy something brandnew and it is new on that very day. So 5 is the highest that you can get. But you will see that because we have been focusen on monetary resources on Transit Service critical and actually have moved the assets in the right direction, term score wise, all the other asset have seen the score drop. And that column has grown significantly. The the rich have been getting richer and moving in the right direction, and the poor are getting poorer and poor err lot more quickly. We know that and we have been looking at the data there. Two specific Asset Classes in that area are Traffic Signals, so we are currently doing a Condition Assessment on that, and our facilities and buildings. And i dont know why were implementing and we look at the estimated backlogs and the particular Capital Improvements and assets in backlog. We measure that every sing sooik l so were in the process of updating that cycle. You will see the dark blue on slide 13 reflects the Transit Service critical asset, so you can see the backlog in replacement, meaning replacing the assets on time. You will see that growth curve. We have been flowing it and moving it in the right direction, but again, the other Asset Classes you will see are starting to get bigger and bigger with regard to were late on replacement. So again, the backlog means the asset is at year zero meaning the buses hit year 12 or the piece of rail hits year 25, and we should replace it, but we didnt and were continuing to use that asset. As of 2018, that backlog and how do we close that and how does that work . We did an update to the methodology in the late state of good repair report which we documented and added in an escalation factor. We had been using actual costs for a long time and didnt consider the cost of escalation in the actual year of replacement. That is a very nerdy statement, but we wanted to be sure to be accurate in the way we reflected the agencys needs. When i discuss the capital plan, that reflects all of the agencys Capital Needs, both state of good repair, enhancing capital asset, and expanding the Transportation System. Here you see the measure that we use for strictly state of good repair. We do make a commitment and i think were going to hit it that we invest 250 million per year in the state of good repair in the system. If we replace the transit surge as critical only and replace those on time, we would need 401 million per year. If we didnt want that backlog to grow at all, meaning we would maintain a 3 billion backlog, assets would just circulate in and hout, that would require 600 million a year. To reduce the backlog by 50 , it is 678 million, and if we wanted to get to a full state of good repair on every asset, eliminate the backlog and replace things on time, it would require 756 million per year. So in the area of capital need and state of good repair, we have very good data that we continue to use in the development of our fiveyear capital and the fiveyear cip different from the capital plan is financially constrained and it is a financially constrained fiveyear program of projects. It has two functions. One is to serve as our essential Capital Improvement and project delivery plans for the organization, so we commit phases we will be delivering and and prepare the scope, schedule, and projects. And in addition, a lot of the funding agencies we work with and the metropolitan transcription commission, and the San Francisco Transportation Authority and f. T. A. Want to see, one, how their dollars are being used. Second, how the dollars are being leveraged against other Funding Sources. And again, how much of their dollar cans we use in a particular period of time. So a very clear fundraising document gives us stability and credibility with these organizations, so when we hold this out saying we need this in this year with our project, we are more successful and securing the Additional Capital dollars. The cip on slide 16 is broken up into Capital Programs very similar to the capital plan itself, but the reason we really do this is many of the Funding Sources are restricted to a particular use. The majority of the sales tax is restricted to uses and the federal Transportation Authority and on top of the federal requirements. And we can only use certain dollars in certain ways. And the majority of the c. I. P. And Capital Budget is restricted. While we have the capital plan and that reflects the optimal way to use the resources and break up the pie and direct tow we might use actual dollar. Slide 17 includes the revenues and we include a certain level of revenue on the competitive side of grants. We typically look at the prior to award and assume roughly 80 of the average of the awards over three years and this allows us to leverage local fund, wisely use local match and be more successful to compare those competitive grants. We have included an estimate for regional measure three based on the 140 million expected for San Francisco. We have modified the timing and use of those funds based on the current and we have included proposition d which was the tax passed in 2019. That includes the 15 million now only 10. 8 million that we expected for vision zero related projects. The vision zero related dollars are in Capital Budget. The transit dollars are and we are including an expectation from transit rail of nearly 60 million over the fiveyear period pooh and we anticipate the same and we have included that. And funds through the transit capital priorities are also included in the c. I. P. We did not include the second general Obligation Bond. We will plan for the next oar 00 million, but prs pra and to publicly state in it project intent because ceqa hasnt been completed and the agencys priorities might change over the next 12 months. We are actively working with the San Francisco Transportation Authority to reauthorize the failed sales tax and to eare mind those watching this program and for members of the board, the proposition k sales tax is a perm the men and is exmained explained and we have financed against the majority of the funds to get a new Expenditure Program before the voters. An expenditure plan alone going to the voters would not be a tax increase. It would just be a new expenditure plan. We have held in reserve the amount to do revenue bonds. We do feel we have the Financial Capacity or we did i might not recommend it in the current environment, but we do have the ability to do revenue bonds, but we want to hold that in reserve if absolutely necessary. We didnt make any action on the faster act or the proposed regional measure act, but we have anticipate and continue to plan for it and no project funded in that in the fiveyear c. I. P. Slide 18 is proposed to be 2. 84 billion in the cycle. Again, that is lower than prior cycles to make that clear. We havent really talked about that and this is supposed to be more detail to help you understand there are 50 plus sources of discrete sources that have a specific use at a specific time in the fiveyear c. I. P. , so we have an amazing Budget Office of staff that help develop and to program each dollar to a certain use at a certain time absolutely is an art. We are constantly changing the fund program and we are some of the best in the region, but there are 50 plus sources to plug in the fiveyear c. I. P. Slide 19 is the roll up and where we end up at the 2. 48 billion and broken by fiscal years and Capital Program. The adopted Capital Budget is the first two years of the fiveyear c. I. P. So you will adopt the fiveyear c. I. P. As a program. You will adopt the twoyear budget as part of the consolidated twoyear budget approval. And i do believe we get over that 250 million kind of average we want to have in the fiveyear period over the two years we are close to see and to do the best on the average 250 million. And typically fiveyear c. I. P. We have certain priorities we try to hit with regard to project. One was fully funding the Quick Program and as you recall, that was a recommendation to proceed with that. We want to permanently fund the vision zero Quick Build Program so when we started it just over a year ago, we used onetime temporary funds. We did get some reprogramming and timing changes with the sixth Street Project to fund that and with the proposition attack to make that a Current Program and we can have the staff to support that program and the shop permits. There are major Street Projects in this and this gets back to the streets line in the capital plan increasing. We have that lowhanging out from and now we are getting to extremely complicate and high drar Street Projects. Part of the reason the total number of projects has the shrunk and Street Projects and the street c. I. P. Overall grow year after year. From howard, phase one, and trying to get phase two funded in the future and that will be in the next double digit. 6th, taylor, and high street all significant projects ready to proceed in the next five years. Fully funding and having a Stable Funding for the lrp and the expansion and that is the next billion dollar project. And the staff and the Transit Division and the budget staff have been working to have a stable and complete funding for that. Electric bus procurement is also in the c. I. P. Another one of the recommendations from the muni and fully funding the computerbased train control system is in the c. I. P. Another one of the meaningful recommendations we were able to include. Better Market Street phase 1a and 1b. What we know is a1 is funded in the fiveyear c. I. P. And a significant number of muni forward projects are funded in the fiveyear cip as are accessible pedestrian signals. That was another project we wanted to advance thanks to the voters approving proposition d last fall. Some things that we were not able to fund because i know the board has asked me a couple of times, what can we not do . In the fiveyear c. I. P. When we cant fully fund a project, we have a policy that says if we cannot fund 90 of the project because its fiscally constrained we will not include that, but the alternative is allowing a project to progress and when we have a high level of confidence and know that project supportedly and the planning phase and completing ceqa documentation, maybe beginning drawings up to 30 , these things only help us advocate for additional dollars. As an example, if a federal infrastructure stimulus bill were to arrive, we would have a number of Shovel Ready Projects to receive those dollars and to be able to construct it quickly. And to get it started and have Modernization Project and we will continue on the preliminary engineering project. On prosidio, we received a grant from cal trans and that will proceed. And fullsome howard bid phase two and three and we could not fully fund the construction in the fiveyear c. I. P. , we funded the design work to advance that project and we will do an assessment and figure out what the needs are and the Capital Project and fire light safety. We are finishing phase two of that and so again, were going iteratively. We are not going through every facility but as many as we can. We were i believe to did the best we can and adding to the mid life, we will do a mid life overhaul with. I want to close with kind of the score card. We have this internal analysis called the weatherman. We look at the capital plan and the designated funds and the Capital Improvement funds and see how well are we doing. How much of the needs are we able to fund in any cycle . And to the left and the needs and the next will show the percentage, meaning of the pie, how much of the need does that particular thing take. You will see for the agency, the facilities, the fleet, streets, and transit optimization and expansion are typically the largest Capital Programs. The fiveyear c. I. P. And if we look at five years and we are all in. And the proposed c. I. P. Distributes the funds with what the largely funding and you can see the delicate different between what we want to do and what we can do. And how much of the need we were able to meet in the five years. And Transit Service asset with the dollars. And one of the core state of good repair and able to meet almost 90 of the need. On the fleet minus expansion which is difficult to fund and were partially trying to fund and overhauls and we have never been able to fully fund that and we are able to nearly meet 70 of that need. And to cover about 25 of what we need. And and so far behind in the red and we dont the resources to meet the need t state of good repair data starts flagging that we have a problem. We take all this data and it is what we use to develop the fiveyear Capital Improvement program that we present to the board in each cycle. That is the end of my presentation. I will stop sharing and i am happy to take any questions. Thank you, jon thatten that, very much. Jonathan, up that. I think the plan is to go to Public Comment and ask you from questions and i know from the screen you will have some questions. Ms. Boomer, see if there is Public Comment on this item. Yes, mr. Chairman. The moderator will open for Public Comment on the Capital Improvement program. Please dial 1, 0 now. We will pause for a moment to allow people to do that. I have gotten an email from a member of the public who says the video coverage is behind about a minute. This is true. And sfgtv does lapse some of the actual presentation by 20 or 30 seconds. And so people should be queuing up now. Mr. Moderator, let us know when you are ready. You have two questions remaining. All right. So first caller, give us your name. I am with the concerned citizens for action safety committee. We are invested in a group of tenderloin residents who liver in the tenderloin and are concerned about Traffic Safety issues. I wanted to comment that in the original c. I. P. Before the covid pandemic, the tenderloin neighborhood was a high priority neighborhood with sfmta. And with 15 million in traffic signal upgrades. And this number needs to be upgraded even higher and we need more than 7 million for quick build. This is a neighborhood that is devastated by traffic related deaths, multiple each year. We need more than the 7 million for more than the quick build. We would like to see more money go to raised crosswalks and other things of that nature. So we ask that the tenderloin neighborhood is continued to be a priority for the sfmta even with decrease in the budget because of the virus. So thank you for hearing us. 30 seconds. And please dont forget about the tenderloin. We need more money than what is already planned. Thank you. Next speaker please. You will have two minutes. You will have two minutes from the time that we stay good afternoon, board of directors. This is claire and i am a Community Organizer on staff at the San Francisco Bus Coalition and much of the work is centered on projects in the district so i know firsthand what it is like walking and biking on the streets for and what it is like to get hit by a car crossing the street in front of your own home. I am hear to stand alongside the allies in the Traffic Safety and thank you for the prioritizing the tender loin with 7. 6 million in identified quick builds and the buildout of Taylor Street and folks in the neighborhood would like that to go to raised crosswalks as the tenderloin is ground zero for traffic violence and chronically invested in the streets and we ask that it is a priority for the m. T. A. With the decrease in the budget because of coronavirus. And it is too long of a way and to ask the projects and the quick build happening in 2020 and as part of the vision zero goal. And i know that sfmta and the citys budget is going to change dramatically given the Global Pandemic and reduced revenues and so many needs to keep our city functioning and support recovery. Even if the asks we make today are part of the 30 seconds. The sfmta may not be able to deliver those things. With that said, we know that and pedestrian and bicycle safe are high value and low projects to deliver and to reassess the capital prior tis, we urge you make mart, effective decision to continue funding and building and San Francisco and Bicycle Safety projects and not cutting them. We look forward to doing this work with you. Thank you very much. Mrs. Boomer, is there any other Public Comment . You have zero questions remaining. Thank you. This mr. Chair, there is no more Public Comment. We will wait for the moderator to close the line. If anyone else wishes to address, please dial 1,0. Well wait for a moment. There are no additional speakers for this item. Thank you, mr. Moderator. Please close Public Comment. All right. With Public Comment closed, jonathan, you will be happy hold on, mr. Chairman. Mr. Moderator. All participants are now in listen only mode. Mr. Chairman, you may now proceed. All right, jonathan, plenty of questions for you. Director heminger. Thank you, mr. Chairman. Jonathan, ive got a question and a community on slide 19 of yours. I dont know if you can get that back up on the screen. But it has to do with the percentage of your total, of our total Capital Spending on state of good repair. And on that slide what it shows is that i believe if i am reading it correctly, were spending about half of our capital money on state of good repair. Is that correct . Yeah f you just proportion the 1. 3 billion out of 2. 4, thats about right. Okay. And so my comment is, and maybe its part of a question, too. When it comes to state of good repair, i am probably like an eat your peas guy. And i am wondering whether were eating enough peas here because if were spending half of our capital money on nonstate of good repair activities and weve got deficits as long as your arm on state of good repair, do you think were striking the right balance here . Or would you rather see state of good repair move a little bit higher as probably i would i am an eat your peas person as well. Good man. So i agree with your analysis of the c. I. P. What i will say is that is largely due, again, to how the funding agencies tell us the dollars can be used. So a huge component of what we do not include in state of good repair are the enhancements or Expansion Projects so we have been expanding the fleet a lot lately, so we have been adding more vehicles to the fleet. Most, i would say, and my staff will ping my electronically, but 85 of the streetrelated projects are not state of good repair because they are new enhancements to that civil infrastructure. So thats another component where the funding is sales tax and other dollars are restricted to that and we cant redirect the dollars to other things. We have been doing central subway and that is a component of state of good repair with the overhead and the traffic signal, but a lot of that work, too, is enhancement work. So were on the back end of a high level of enhancement and expansion project in the city. I think you will see in the next state of good repair report that the average we spend on state of good repair is continuing to climb. And we will continue to use that Asset Management data and direct funds and new sources. [please stand by]. Im just wondering if we have a project slated for funding in 2021, and we have a another project slated for funding for a later year thats more flexible thats ready to go, is that something we can move it around because were ready to go, or is that how it works . No, thats a very good question. Im going to give a very technical answer to that. Sometimes, but not always, and it gets to that 50 different Funding Sources that the staff are constantly moving and shaking between projects. So if a project is ready earlier, we will attempt to advance the funds to allow for that. If were restricted, meaning, we really cant like, we cant apply for the funds or the federal appropriation wont show up, were kind of stuck with that. But its the same kind of information i gave director hemminger. What we do not want to do, and we make it an absolute policy to do this, we do not want to make a c. I. P. So that anything slows down. Can i ask one more question . Of course. So i notice it looks like, to me, at least, on page 5 of the full funding document, that projects are funded in 2024 and 2025, and im wondering if thats part of the strategy that were funding projects scheduled earlier or if were just funding projects in 2024 and 2025 . My full answer is that some of it Julie Kirschbaum gave you a presentation focused on that, and she highlighted some specific muni forward projects where equity facts from the muni strategy. We do want to make sure that if theres a recommendation out of the muni equity strategy, that we have the cash available to augment the project in able to advance those recommendations. So if it were that far out, we have typically integrated some of that information into the project. Very good. Thats all i have. Very good. Director eaken. Thank you. Thank you. I wonder if i could start with just a really highlevel question. Today, were looking to make final steps on the onetotwoyear budget Capital Program. I wonder if you could answer what it means for our project to be in this fiveyear plan because it seems like it takes a step towards becoming more real. Once we adopt it in the budget, its much more firm, but whats the significance of being in or out of this fiveyear document . So thats a great question. So we didnt actually, until ten years ago, do a fiveyear Capital Budget. That is strictly the appropriation of dollars under the control of the city and county of San Francisco. Actually, its only a few of those 50 Funding Sources that we do that for. Development impact fees, the general Obligation Bond, our own revenue bond, our city sources, and require it to be appropriated. Were going to start putting in seed money or ceqa or the start. For the sales tax or working with the Transportation Authority, it lays out with project specificity how were going to use the transportation sales taxes we get from the Transportation Authority. It is our delivery program, so being in the fiveyear c. I. P. Means the agency is making that commitment to deliver that project. Okay. Great. And how often is this updated . Is it every few years, well do this again . Yes. Ive already warned my team that in 13 months, well be doing this again. We update the fiveyear c. I. P. As part of every twoyear budget process, so we are constantly updating it. Okay. Great. It just seems that theres a bit of a tension sort of between locking in now what were going to do for the next five years, and then, the world just changing all the time, like with the Current Situation weve been facing. Weve heard director heinicke speak about wall street being at the start of this, and San Francisco being at the end. It seems like there are things that we havent had a chance to talk about as a board that are not currently contemplated as a plan. I wonder if we can consider those, and as we make new priorities, those can come up [inaudible] that is a fantastic question. So in the resolution both for the budget and for the fiveyear c. I. P. , the board delegates technical Adjustment Authority to the director of transportation. On the capital side of the equation, that authority is delegated from the d. O. T. To the agencys transportation capital committee. Because i just told you that its 50 Funding Sources, were constantly moving things around. Like, figure out how to do vision zero quick falls, how to find 6 million. So in that example, lets use the quick fill program. Tom and jamie came to my department and said okay, presentation on quick fill program. And i said, how do we do that . We will look at all the projects in the fiveyear plan on sixth street. We clearly knew that this project didnt need that today, so we made those funds available, and we backfilled this project. So we are constantly reviewing the program on a monthly basis. What we can do is give the board a little more transparency on that. We can give you quality updates. The c. I. P. , i always tell people this, this is a picture of a moment. The board approved the c. I. P. And does mass changes, you know, multiple hundreds of projects. So we essentially add the last two years in any c. I. P. Cycle, so were adding to the back end. We are constantly funding projects, moving projects, removing projects. This is the first time the board has asked for this much detail on the fiveyear c. I. P. , but if you would like a report on that, we can happily track that. Okay. Thank you. And then, my last question is sort of looking at slide 22, where you layout in kind of the fourth column over, you layout the fiveyear plan and how that contrasts with the proposed c. I. P. So im wondering if you could just remind us, how are we defining needs there . Have we i have to ask the question, im sure the answers yes. But are we looking at the most comfortable version of this plan, and is that something that aligns with our states goals around vision zero or is need there defined differently . I would say the need in the 2019 Capital Needs column reflects fully implementing vision zero. Thats what staff thinks will be needed to meet the project goal. The c. I. P. Is more of a reflection of what the funding agencies tell us we can do. So the decisions things we do, decisions we make, when we get a discretionary source, we take this data, and we say hey, we really need it for this. So for example, today, leo and i were having conversations about vision zero, and we were, like, hey, quick fill. We dont have the flexible dollars to do a program like that. The Transportation Authority really likes flexible civil improvement like staffing and paint and why are we funding staffing . So i think its been one of the reasons that we have been so successful at advocating and getting capital resources. We now want to take kind of the same approach on our operating side, which is why weve been so transparent about need, structural deficit. So we really use it as a tool to help us fill those gaps. Thank you. Thank you. All right. Director borden . Thanks for all your work on this. I know its hard to look at a capital plan when we have so much uncertainty lying ahead. You mentioned the prop c sales tax. Are you looking at putting another measure on sooner than that to kind of address some of the needs that we have from the expenditure plan . What are our immediate plans related to that . Yeah. So interestingly enough, i was on a phone call about that today. Our we have been advancing the proposition k sales tax. We work with the Transportation Authority, and we essentially borrow and pay loans to do that today. So we are getting close in many categories in terms of the sales tax to running out of money. Weve used the entire 30 years of sales tax dollars for procurement, so when we start our next replacement cycle, we have no dollars to match, so this is the problem, and were actively working with the Transportation Authority now for a schedule and time to bring a new expenditure plan for 30 years. We have to assess what the impact will be, like, how soon can we get the dollars if we did that . Can we shift dollars from the Current Expenditure plan to meet todays needs . We will be looking at that with all of them probably over the next 12 months. The next election is in june of 2022. Thats when we expect to have a general Obligation Bond on the ballot. That would be a nice, easy election to have an expenditure plan but again, no tax increase, plus a g. O. Bond for our needs. The transportation authorization, and we are also asking if youre going to do that, would you add another half cent like youre trying to do with proposition jk, so over the next few months, we will be laser focused on what were going to do with the sales tax program. Thank you. Director rubke . [inaudible] how much flexibility do we have based on need . Is it based on density, and how much say do we have in terms of deciding where its going to go . So again, the whole budget process has been based on value. Thats been the theme of this budget process. Keeping the Budget System stable and in a state of good repair is pretty much where we start first. And again, a lot of our funds are designated for that purpose, so thats where they standup. With regard to streets specifically, and those are typically the traffic and signals Capital Program and streets program. I know liveable streets and sustainable streets division, they take equity, they take need, they use the data that they get through the vision zero process to prioritize the projects that they want to accomplish. I think another thing that we havent discussed that i do want to bring in there is that we also take project delivery into account. How quickly can we get that improvement out on the street to support those who need it . It is a very difficult discussion, and another theme in this budget process and there will be more and tradeoff decisions. So i think equity, need, decision data, and how soon can we get the information out to the public are the key criteria in the decisions that we make. All right. Thank you very much. I would also let tom mcguire speak to that if hed also like to add anything to the statement i just made. The one thing that i would add, fellow directors, when we look at street or, you know, a partial closure to private automobiles, there are two aspects of that. There are, of course, a very significant Capital Project that goes along with a project like Market Street, but there also are just interim traffic changes that can be made with let significant Capital Investment that can be made with signage paint. As director eaken noted, i think this is something that we can use this circumstance to explore more fully. Jonathan, as others have said, thank you for a wonderful presentation, and thank you for doing it with such enthusiasm. Mr. Chair. Yes . Mr. Mcguire would like somebody to unmute his microphone at this time so that he can contribute to the conversation. Do i get a say in whether we allow that or not . Nobody could hear him. All right, tom. Well wait for you. I believe that director mcguire will have to start and unmute himself. Clerk all right. Thank you, mr. Copeland. I will tell him that. We can hear you, tom. Go ahead, please. Im sorry. I didnt mean to disrupt the flow. Just telling roberta, i couldnt tell him at jonathans prompt, i actually agree with everything jonathan said. Sorry, again, about breaking the flow there. Eloquent as always, mr. Mcguire. I believe that takes us to item 12, does it not, miss boomer . Clerk yes, it does. Presentation and discussion of the fiscal year 2021 and 2022 operating and Capital Budget, including use of the contingency reserve, proposals on fare policy and pricing, review of new and existing fees and fines, authorizing sunday and evening parking meter enforcement and service changes. And again, well turn it over to jonathan turner. Based upon the extensive Public Comments that weve received and at our last Board Meeting. Jonathan . Thank you, director tumlin. So i am not sharing. So i will just queue the slides as they go through. So just today on slide two, we just want to cover a couple things. And just for the record, i was incorrect. It is h. R. 748, and talking about the Capital Funds today, and how those will be plugged into the final budget that we will bring before you on april 21. Today, we just want to cover, as director tumlin noted, on the next slide, the proposal that we brought forward to you through this budget process. Again, i want to start off by saying this was a very iterative and open process. So one, the values of transparency, we were very clear about what the agency wanted to do in january, who our physical status was in january, and what we might be able to accomplish, what the constraints were. That was january. We then had two public hearing, both on fares and fees and fines and Public Parking policy, to have not proposals out there, but to have an open conversation and collaborative conversations with the public about the various proposals that the condition was considered to balance its budget. So today, we want to kind of close that discussion. This was a follow up to what we talked about on march 17. These are the final policy proposals that will be baked into the budget, and ill just quickly cover those. So that is the next slide. That would be slide 4. So here, you will see the original proposals that we had with regard to fares in january. What i do want to note for the board is that the minimal cost programs are built into the budget. I do want to say that homelessness, now housing insecurity is something of note, and that was around value of access to the system. We had covered our fair access and what we wanted to achieve. A lot of these had to do with efficiency, with regard to access for the riders and promoting greater ridership on the system. A lot of these will move forward. One of the things that i do want to talk about is piloting the monthly fare capping. We will study that as part of moving forward with clipper ii. So we will move forward with an actual pilot. We will do our best to make that work. I know thats been a conversation that weve had over the past two months. We will look at that, and thats on the table, but pilot was very specific. I dont know that were ready to do that, but the general remainder of these will be implemented in the coming years. The next slide represents the fare proposals that we brought forward to you. There was debate and discussion at the Board Meeting in march, so it is currently before the board and proposed that we move forward with the equity clipper option. It will reduce the clipper differential, so it will increase fares on the single ride, but again, we will maintain a discount to support people who want to move to electronic forms of payment. The reduced singlefare rides, youll see they stay the same. We have included two programs, free muni for all youth, and free muni for all individuals experiencing homelessness. Free muni for all youth was based on feedback that we received, every from the youth commission. So again, it has to do with opportunity costs, focusing our fare evasion staff on people who should be paying the fare, not creating uncomfortable situations for our youth in San Francisco, and removing the administrative cost of implementing the program. That was feedback we got both from the public and directly from the board, so it just makes sense to implement this. We did maintain there is a slight increase in the muni fast pass that you will also see here. That really has to do with managing discounts across all of our fare media, but we are recommending the equity clipper option. The next slide, this was another reason that we moved forward with that, because tis will see that one of the reasons we moved forward with one of our products, the muni fast pass, you will see that the break even is 30 trips, almost even between both types, depending on the type of fare. We have two. You will see that we still remain eyely competitive within the region, and we are competitive nationally. So the muni fast pass is a fantastic deal for san franciscans, and through this proposal, it is even a better deal. So what we did here was keep the cash fare the same. We did that. We heard, you know, make muni free for youth and remove that Administrative Burden and the uncomfortable feeling for youth riding our vehicles, and fare evasion, we have addressed that issue. We have changed the lifeline issue to be c. P. I. Instead of s. S. I. , focusing on equity and fairness, but also staying true to our indexing policy, mannering, the amount that were incurring is adding to our budget based on cost growing, that integrity has been maintained. We are adding that into the budget. The next slide is the parking proposals. We will move into extended hours, we will move into sunday parking. We will do a specific neighborhood corridorbycorridor approach. Director tumlin and i did meet with the council of district merchants. We mentioned that. We did not get any significant blow back on the proposal. They understand that, and they understand that we will work with them on implementation across the city, so that has been integrated into the budget. Next slide has to do with the tow program. So generally, the agreement was to go with option 2. We covered the data with regard to who gets towed and when they get towed, and we reduced the cost for a tow. So that remains neutral because if somebody is living in their car, we do not want to take their home away from them. A new proposal on the next slide added to the budget, and this is in relation to the Current Situation is we have built into the budget waiving all taxi fees over the next two fiscal years. So the general cost of the fines, if there are fines, will not change, but we have reduced the amount of fees that we have referenced in the budget. It was roughly 1. 6 million in two years in the budget, so thats going to go down to 200,000, just related to enforcement related revenues. This was feedback directly from the taxi industry, so we incorporated that into the budget. Next slide. So again, these were the solutions that we proposed on the 17th. I will tell you that this will change as a final adoption on april 21. We will make some adjustments based on the timing of federal grant we expect to get from the federal relief bill. We do need to set aside an 85 million capital contingency. We do have to fully fund the parking project. When we shifted some of those sustainable longterm funds, like proposition b, the general fund set aside to the operating budget, we did have to fill with onetime funds, and that did require 10 million. Im working with my teams across continued improvement across all of our yards for our workforce. 8 million is probably the minimum to continue a successful Maintenance Campaign program. You saw the state of good repair numbers, and these are the minimum numbers needed to keep our facilities safe for our employees. The next set is the numbers that went forward. So it contains the numbers that we are proposing funding in the budget. So working groups, information technology, the parking control officers. So let me be clear about this. The policies and the programs are going to come forward to the board on the 21st absolutely maintained. The dollar amount and the timing of implementation will change, and we will cover that on the 21st. So today, we want to cover the policies and the programs, which we will build into the budget. We may need to make adjustments on timing and hiring and implementation based on the current economic shock and what we anticipate to be a downturn in future years. So i just want to make that very clear as i close this particular section. So next is just an update on the budget itself. Next slide. So again, we are generally at a balanced budget on 5. 13. The first thing i would like you to note on this slide is that the budget between the two fiscal years actually did not grow all that much. We were pretty stable between the two years, even if you consider c. P. I. And you consider salary growth. We were already, you know, flexes our muscles with regard to what we could fund with regard to the programs and policies that we can included. I can tell you on the 21st, this will go down, but not as much as you would think, and i can explain that. We are working on shifting timing of implementation of programs, maybe being a little more efficient with some of our internal operations. We have built all of that into the budget, so we will, again, on the 21st, have a balanced budget implementing the policies and programs that we have been talking about for three months now, and based on the actual feedback that we have received from the public since january. So we have integrated what we heard from the public and from all of the outreach that we have had. We have taken your feedback and adjusted the budget appropriately. Now we are going into the final numbers job of balancing the budget and making it an implementable program. The next slide addresses the final numbers and the various sources there. What i will tell you now is that we have looked at all Funding Sources in fiscal year 21 and 22. We did go through a process looking through all recessions from 1948 to see what a recession scenario would look like. We did present a recession scenario presentation to the board modelling the 2009 downturn. We considered other types of economic downturn, and those specifically brought on by a shock to the economy. So we do expect a number of our sources to drop, however, the operating grant line that you see there, we do anticipate increasing to offset the losses on our Enterprise Business lines, as weve discussed before, and a reduction in the general fund set aside. We have accounted for new numbers from the Controllers Office, and we have taken the worst Case Scenario into account. The next slide shows just the expenditures. Again, trying to work toward the balanced budget, so there will be some minor adjustments to the budget brought on april 21, again, maintaining the policies and the programs with some workarounds with regards to the numbers. The next slide, again, is just a summary of the various programs that were included, so these are expenditure increases that we expect over the next few years. I do want to stress again that when we discuss the budget on the 17, a core component of it was basing it on future growth. It was built on things anticipating on a new revenue source. So now, its about building and having that foundation in place for the economic recovery we know will eventually come. So the next slide quickly covers again h. R. 748, so again, typo on my part. At least i was consistent on the typo, and where we are currently. I do want to give the public and even our own team at the m. T. A. A sense that we are looking at things right now. We are actively looking at what happens next so there is a shock to the economy going on right now. In the current fiscal year, we have put controls in place so im on the next slide, slide 18. That includes reductions in scheduled overtime, which director tumlin has announced to employees. We are creating and had intended to, any way, a very detailed hiring plan. So we will carefully look at the period and time of position. So as an example, we want civil lists to be developed. We are focusing on those positions that are service critical, so we are considering holding for a quarter or two positions that we are expecting not to start immediately. We are taking all of those things into account to balance the final budget. We are also looking at reductions and nonpurchases of noncritical equipment and supplies. So we know from the information we received from m. T. C. We will get likely close to includes these fiscal controls right even in fiscal year 20, so this gets to how we will manage revenues and expenditures, which is what we talked about in march, before all of this. We had a plan in place to deal with this situation. Ive been told im optimistic. But i feel we have prepared for this situation, and we will give you extensive detail on april 21 to give you comfort in approving the budget. So again, we did look back to recessions back to 19148. We have looked at scenarios. We anticipated losses, and we anticipate maybe a roughly 210 to 295 million loss. This is the loss that we anticipate. With regard to an economic downturn and the period of that, we modelled our work very much after the Controllers Office. I actually think we were more conservative in some cases than the Controllers Office in an extended period of a particular downturn. So were definitely assuming it will go through calendar year 2021, which takes you into part of fiscal year 2022. So at least for a good 60 of the budgetary period that were talking about. The revenue loss and we have different scenarios. Were going with one that were going to talk with you more about on the 21st. Its revising our economic downturn models from 158 158 195 million to a 210 million loss in the fiscal year 20212022 period. So we have anticipated that, and it will be in the budget that will come to you on april 21. So then, the question is how do we close that . So thats the next slide, slide 20. So h. R. 748 was the cares act, and so it did pass. It provides 25 billion appropriated in the current fiscal year based on standard formulas to transit agencies across the united states. Costs are eligible back to january 31, 2020, so this allows us to close our fiscal gap in the current fiscal year. In the bill, both the local match, which is 20 , and the requirement we be in the transportation Improvement Plan within the m. T. C. Region, those were waived. So once we get the programmed amount from the metropolitan transportation commission, the m. T. C. , we will be able to put in a grant to the m. T. A. And start implementing our costs for the fiscal year. The bay area itself expects to get 1. 8 billion from the transit relief bill due to the covid19 emergency. Were expecting the first action on that to be later this month, probably around the same time as the budget adoption, likely in that same week. We are working with m. T. C. And the transit agencies within the region on the formula. Director tumlin may want to add onto that after im done with this presentation, but we expect somewhere, im going to say now, between, like, 170 to 200 million in the First Tranche of funding, which will close that projected funding we have. The second tranche will happen sometime in the summer, and based on many different factors that we have used, we can generally project that we would get between 170 an 170 and 20 million in t million again. We have include thd that in th budget. We still are working through some timing and cost control. We were going to be in that situation any way, and we put the infrastructure in place to implement that operating program, but we will put that in place, ensuring the board feels comfortable in approving that. So today, were covering both the c. I. P. And giving a fiscal status on where we are on the state of the agencys finances. On the 21st, again, were hoping to get approval of the consolidated budget, and approval of the fiveyear Capital Improvement program. There is likely to be an extended budget approval period with the board of supervisors until likely october, when it will become adopted. We will recommend on april 21, during this interim period, we not incur new expenses. So things we expected to start july 1, we would recommend delays one quarter, which reduces costs, and helps us balance the budget overall. So that is my presentation on this situation, and again, im happy to take questions. Mr. Chairman, would you like to go to Public Comment on the budget at this point . Yes, please. Clerk all right. Thank you. If we can ask members of the public who wish to address the board on the operating and Capital Budgets, if you could please dial onezero now. When it is your turn to speak so first speaker, please, as soon as you Start Talking, ill turn the microphone on or turn the timer on, and you will have two minutes. You have three questions remaining. Okay. Thank you, mr. Moderator. Clerk hi. First caller, please. Hi. My name is alex kinerell, and im speaking on behalf of teamsters local 665 in regards to the letter that was submitted earlier to director tumlin. Mr. Tumlin, we ask for your review of pending contracts scheduled to be out to bid in the coming months. These include off Street Parking sfmta facilities, tow services, parking meter collection, and parking meter repair. Each of these have a teamster complement of public and private workers and many are longterm employee. The vast majority are laid off during this emergency shutdown. Additionally, replaci additionally, [inaudible] as teamster representatives, we are requesting stability of return to work after the post covid19 shutdown, continuing and extending these contracts for all the mentioned sectors for an additional 24 months will go far in facilitating projects and services. Hundreds of employees have enjoyed working in these sectors, and they look forward to returning to them once we get back to work. Clerk 30 seconds. All right. Thank you. Next caller, please. Caller you have two questions remaining. Clerk okay. Caller, we will start your two minutes when you state your name, and you Start Talking. My name is peter, and im with somcan. Why does sfmta want to raise fares . We have been saying we dont want a fare increase. We dont want an increase on fare options. We know that all our families were struggling even before covid19, and if sfmta were to raise the fare, itll be a big burden for families that are trying to get back on track. Fare increase will only lead to decrease in ridership. In our experience, increased fares does not lead to increased reliability. We dont need to talk about reliability. Please do not punish families by raising fare options. We already dropped off 1800 postcards and signatures of the families and individuals that utilize muni as their only option for transportation. We dont need fare increase for payment options. Yesterday, the no fair increase resolution by dean preston got adopted in land use and transportation committee. Please look into that. S. F. Thrives because of working class and lowincome families. No increase on fare payment options, especially during this pandemic and very tough times. Thank you. Thank you very much. Next speaker, please. Caller you have two questions remaining. Clerk hello. As soon as you Start Talking thank you. Alita dupree here. I have been looking at pages 4 and 5, and what we call equity clipper, but i fail to see how it promotes equity. I am a person of modest means, and i use clipper for two reasons. One is i get a discount. I need to watch my pennies, and two, its a safer, registered way for me to pay my fare. And as people with disabilities tend to be of lower income, i feel it necessary that the lifeline and the reduced fare monthly passes should be the same. Im also concerned here about when i read on page 4, about eliminating the clipper differential passport. It doesnt indicate what way the clipper fare will go, but if we want to encourage people to use clipper in its safe, registered format, im asking myself why were still selling paper passports . I remember the days in the new york city subways when they had to tokens, and they had to get away from that the same as we need to get away from cards. So we need to bring all of our communities together to participate in the clipper program, and they can participate in the community by loading their clipper® cards instead of having to be tied to only going to the vending machines and to the ticket booths. So selling paper passports is a really expensive way to do business. So not having seen a staff report, some of this is confusing. I do support fare capping. I think fare capping should go onto clipper, as well. Clerk speaker, thank you. Your time is up. Thank you very much. Clerk next caller, please. Mr. Dupree, your time is expired. Thank you, as always. Hi, this is thomas miller. I was saying as we still have a discount in clipper, just making sure that clipper is available in areas outside of the downtown core, which might include putting vending machines as surface rapid bus stops. You guys have set a lot about oh, we need to wait until the next generation, but b. T. A. And h. S. C. Transit already have day passes on clipper, so thank you, mr. Miller, as always. Miss boomer, any other speakers . Caller you have one question remaining. Clerk all right. Member of the public, when you Start Talking, please state your name. We will start your time. Its clear that this pandemic will have unprecedented and rippling effects at the national, state, and local level. According to governor newsome, on march 31, 1. 5 million residents had applied for unemployment, with a singleday record of more than 150,000 people filing on march 30. This number will continue to rise as People Struggle to pay rent, tuition, and put food on the table. The necessity of an equity fare policy becomes even more important in the wake of this pandemic, and i urge the board not to raiincrease fares in an capacity. Thank you very much. Thank you. Miss boomer, do we have anybody else . Caller you have zero questions remaining. Clerk thank you. If you would please close Public Comment. Mr. Chair, youre free to proceed with the meeting. Very good. Director hemminger . Thank you, mr. Chairman. And jonathan, i just wanted to check a couple of numbers with you. It would appear to me that your revenue estimate of losses is almost the same as you expect to get out of the m. T. C. In the next several months, is that correct . Yes. Well, colleagues, Speaker Pelosi offer makes the point that she prays for our president , and i think we ought to pray for her, because these federal funds are saving the day at muni and a whole lot of other places, and i certainly want to applaud her leadership in securing those funds for us and transit agencies around the country. Jonathan, i just wanted to ask you one other question because when you indicated how you were going to deal with the reserve balance, that there might be some changes coming. But based upon what we just agreed to, it doesnt sound like we need to eat very far into that 10 operating reserve, do we . Yeah, so thats a good question. So as of now, and things are changing hourly. They have been for the past two weeks. As of now, the 130 million reserve will be maintained, so we are not projecting that you would need to use that in the next two fiscal years. So it will be available if things get worse than our downturn projections. Thats the first thing. We are going to make a couple other technical adjustments, so we would recommend that we maximize out the federal grant that we get in year one and not use any of the fund balance to balance the operating budget in fiscal year 21. Instead, use it in fiscal year 22 and wait and see how the economy goes. So if we get those federal dollars, it will likely be expected that we use them as quickly as possible, so we should max out what well get in 21 and not use our own fund balance, try to reserve that if theres an extended resession into fiscal year 22 recession into fiscal year 22, so thats what were going to recommend. Yeah. My c. F. O. At m. T. C. Used to say always spend other peoples money first, so i like what youre saying. Jonathan is perhaps more optimistic than i am about how the covid19 will affect the country. Im concerned this is an unprecedented economic event since 1918, and my task is to make sure that our workforce is not impacted. So i am being much more conservative in my judgment than jonathan. I respect his work and holding onto that reserve fund because im concerned that we are going to need to use it in order to hold onto jobs. Very good. Thank you. Director eaken . Thank you. Going onto slide 19, the three scenarios, just confirming, so the 195 to 225 million, thats projected for a little over three months, the last quarter of the fiscal year . Thats correct. Okay. Thanks. Can you share anymore details in terms of the assumptions that youre making when youre generating these three scenarios . Yeah. So we are looking weekly at we actually just started, because march just closed, looking at what we got in march 2019, and what we got today, but generally, the approach is we know and director tumlin can add to this, like, ridership and fare revenue is down, like, 90 . Its nonexistent. So this is why its important to look at it now as an economic shock. We are not just doing business, we are doing zero. The same is true largely with meter and parking revenues. Were down, like, 85 , 90 . As we get more data every week, we can be much more precise about what our revenue losses are, so were just not making anything. We know what were supposed to make, and were assuming 85 to 90 losses because thats what were seeing. We just got an update from the Controllers Office, and we are assuming the worst in our general fund loss from the city, so thats baked into that equation. The thing thats outstanding is our operating grants from the state, which is a huge part of our budget. We still dont know if the state will true us up, using their own reserves. Were certainly advocating for the state Transit Services gap. Its the sales tax on diesel fuel. Usually, you would think thats stable, but right now, sales taxes are crashing, and diesel and fuel taxes are crashing. But were pretty confident about the losses in the current year. So youre assuming the current ridership and revenue and parking revenue losses, what were experiencing now, that is expected to go all the way out to the end of june . Yes. We dont see a dip so my boss thought i was not conservative enough in the first round, so we are not even assuming a dip back up until after june, so this is, like, down until june. Okay. Great. And then, finally, could you just remind us, what are the eligible uses for that transit funding that were going to be receiving through the stimulus . Yeah. So the federal legislature used the existing 5207 formula, so thats an existing transit federal grant for the purposes of Transit Service. So that will it can be used for transit operating costs. So we have to look at ourselves purely as a transit agency. So usually, that part of our budget is roughly 900 million, so it can be used to offset those costs. Okay. Director torres. Yes. Can you hear me . I can. Great. Jonathan, one of the most important issues that were facing in the near term is the cost of health care. Im one of the five members of the board of cover california, and we received some very sobering information, but i dont see that reflected in your estimates in terms of benefits for employees who now project about a 40 increase in health care premiums, and probably what were going to end up spending on covid19 treatment for patients in california will equal what we spend per year on Everything Else in our budget for health care. So where are you figuring in the projected costs of what were going to have to confront for our employees . Thank you for the question. Thats a great question. So what we can show you today is what we think were going to lose on the revenue side. Your question gets directly to the expense side, so the last time we showed you an economic downturn model, we had the revenue loss of roughly 158 million, and maybe some of you will remember, we also had increased retirement and contributions that went upward in that period, making it 200 million total. We are looking at the costs of fringe and health care benefits, assuming increased retirement contribution, so we are working with the Controllers Office now to figure out what that expenditure hit will be. Again, i am attempting to be conservative in our revenue losses. The final budget that will come to you will be less than the 1. 3 billion. We will have to cutback certain things, but those expenses, we are working with the Controllers Office right now to make sure we are accounting for those in the budget fully in the next two years. Good catch. Very good. Does that answer the question, art . I suppose so for the time being. Thank you. Yeah, very good. Director borden . Related to the question about fares and just the economic outlook, are we looking at the issue around social distancing . I mean, im fully not only might we have a decline in ridership, but it seems to me that the virus will not be gone after any time we leave shelter in place. I dont know if theres any talk about whether well have to maintain some degree of social distancing in spaces and being able to employ that and maintain levels of service. So i dont i dont know i was wondering if your economic model was taking that into place into consideration, not just the decline in riders, but the need to augment service significantly to meet the need while providing social distancing . Yeah. So in the in the shock model, the shock model is, like, were just not doing business. We are making zero because theres just no activity. In the economic model of a recession, its actually believe it or not, for those of you that have been on the board for a long period of time, our enterprise this budget, we talked a lot about our enterprise revenues and the general fund support that we get, and we talked about how apt wed be to an economic downturn. In the last downturn, our enterprise revenues typically stayed pretty stable. However, we did account for the fact that where we are going to take the biggest hit and the slowest recovery will be on transit fare revenue. We think that we did account, especially for the first six to eight months of fiscal year 21, that thats where were probably going to lose the most. Thats probably we we do lose the most in our updated revenues that youll see on the 21st, and the period of recovery on that is extended a lot further than on other things. As an example on that, fewer people might ride transit, but more might drive cars on their own because they do want to observe social distancing. We do think that parking revenues are going to recover pretty quickly, so we are going to extend the meter hours to cover that. And yes, we assume that fare revenue and social distancing will continue for an extended period, late into 2020 and probably into 2021. Thats right. And were continuing to look at whats happening in cities particularly like taipei, honk song, and seoul, places that had Great Success in flattening the curve, and looking at what they did in keeping that curve down and not allowing for new increases. In some ways, they are learning from San Franciscos experience in the aids crisis about factors like the critical importance of testing. So if we can let people know that they are asymptomatic but covid positive, we can start accommodating a greater amount of selfquarantine and also lift travel restrictions, right . So the way to get people back to work is to know that theyre not covid positive or that they have the covid antibodies. Were hopeful that we can learn from the asian cities that were hurt first and can learn from their successes and avoid their failures just like weve done in the last six weeks. So i guess youre saying that were going to invest in testing to test our employees . Were so grateful for the mayor mayors announcement yesterday. The piers are going to be set up for testing for employees this week and frontline workers next week. That should help us to start to bring back our workforce both by increasing confidence that our operators are safe but also having to send fewer of our workforce home for quarantine in order to provide out of an abundance of caution, but our workforce isnt spreading unknowingly the coronavirus. And i assume that comes out of our budget . Thats right. Again, its a way that the city departments are partnering with each other to support each other. The city has taught departmented to collaborate with each other, to be more efficient and helpful, looking at the entire city family rather than just our own individual Budget Bottom lines. Just as were continuing to invest in service to make sure that other departments essential workers can get to work. Very good. Okay. Any other directors have questions for jeff or jonathan . I dont see any coming in on my electric board, so i will say thank you very much, jonathan. You very much captured the direction it wasnt always unanimous, but you captured the direction of the board in the last few meetings, and i appreciate that. I am appreciative, also, of the extra effort to accommodate the taxi industry, which was reeling to begin with and is reeling more so now that not hitting our revenue mark, we will start prioritizing and making different decision about the policy and programs that we turn on, so you are correct. If we are going through a procurement process to get a new parking meter vendor to replace the meters, clearly, we would not spend the entire 22 million in year one. We probably would not spend the majority of it in year two. If we need that cash to balance the budget, just like our Capital Projects, we will use that, and we will use our general fund dollars to do that. So one of the shifts that we use will be the balance to cash flow. And we can cover it in more detail on the 21st. Okay. So i will support this, as youve laid it out, and im glad weve maintained the fund balance that we have for this rainy day, and thats sort of a message for the folks that will be serving on this board for sometime as a Good Practice of corporate governance. I will say before we began these discussions, before we knew the extent of this virus and the associated impact, we were talking about using the fund balance for some things and talking about the discussion of well, there may be a rainy day coming. Well, that rainy day is obviously here now. I will support this, but i will request that we keep an eye on that because i dont really want to be in a situation where we get below the 10 . I think that can have a very significant effect on our ability to borrow, the price of borrowing, and i think it sends a real message of where we are as an agency. I like the fact that we have a little bit of a cushion, but im going to take your word that youre going to monitor this, and if we get to the point where theres critical actions that need to be had to balance the budget, id rather we take action to avoid that. Understood. Anyone else with comments on this item . Again, i think were in a nonvoting situation because we have one more meeting on this. All right. That would take us to, unless we go to the public excuse me, to the closed session right now, it would take us to item number 9. Miss boomer, are you okay proceeding to item number 9 before we go to closed session . Clerk yes, mr. Chair, that would be appropriate. This would be an opportunity for members of the public to address matters of jurisdiction for the board but not on todays agenda. Members of the public who wish to address the board, please press onezero. Your conference is now in questionandanswer mode. Clerk the moderator will let us know if there are members of the public who wish to address the board. If you wish to address the board, please dial onezero. Caller there are no members of the public who wish to address the board. Clerk thank you, mr. Moderator. Mr. Chair, there is no one who wishes to address, so if you would like, we will close Public Comment. Okay. So that closes Public Comment and ends item 9, and we will move into closed session now. Do i need a vote to move into closed session . Clerk yes, mr. Chair, and that will need to be a roll call vote. Okay. So can i get a motion and a second to moved into closed session. So moved. I second. So would you call the role on that, and directors, after this rollcall vote, well take a threeminute break while this is set up and just give everybody a chance to get a glass of water. And mr. Chair, just for the record, before you take this vote and a lot of noise. Okay and convene the closed session, the board is going to report out on the closed session, including reporting on any action taken in closed session, and a motion to disclose or not disclose the information discussed at the beginning of its next meeting either on april 21 or if it doesnt meet that day, at the next meeting. So after you convene the closed session, well ask Board Members to exit this meeting and then join the closed session meeting that is on your calendar. I will now read the roll with regard to invoking the attorneyclient privilege and convening the closed session. [roll call] clerk mr. Chair, you have a quorum, and so the board will now go into the closed session. So your instructions are to hang up on this call, essentially, click the red button, and then go into the calendar, the closed session, and then separate log into that meeting. Clerk yes, mr. Chair. Thank you very much. Does anyone have questions on that . Roberta, you may need to change the outlook invitation so that we can start the meeting early. Its not scheduled until 4 30. Clerk okay. Very good. Okay. So look for that, folks, and please log in within, lets say, the next five minutes. So to the members of the public watching, thank you for accommodating this unique format and showing the resilient city that we are. All right. Thank you. Well move into closed session