Clerk we have quorum. Chair peskin thank you, ms. Milton. Do you have any announcements . Clerk yes. Public comment will be available for any item on this agenda by call 8882045987, and entering access code on the screen. Once told, you will be invited to join the meeting as a participant. When prompted, dial star, three to speak. You will be prompted by the system when it is your turn to speak. Please anow for audio alf delays and a 30second lag time during the course of this meeting. That completes my announcement. Chair peskin thank you, ms. Milton, and colleagues, supervisor mandelman is going to be about 30 minutes late fore this meeting. Colleagues, is there a motion . Supervisor walton second. Chair peskin ms. Meltocan that without roll or how do i handle that . Because there is no quorum for this meeting, you dont need to have because there is no quorum for this meeting, you dont have to call roll for that item. Chair peskin thank you. I want to thank supervisor walton and supervisor yee for convening two weeks ago during our oneweek recess to consider and ultimately approve the onecent sales tax for our caltrain. This will provide much needed reforms and a path for long needed funding for this train that will connect San Francisco, san mateo, and santa clara counties. We want to thank supervisor walton serving on the ad hoc govern johnson committee, particularly supervisor send cindy chavez and david cruz, as well as our entire elected official delegation, including our mayor, mayor breed, senator wiener, and representatives chiu and tang. Now we need to educate about the measure and as a measure, it will need two thirds ballot approval to pass. The other thing was the m. T. C. To include the downtown extension or d. T. X. As we call it, strengthening the projects call on near term federal and state funds. This is just the draft reprint stage, but i want to acknowledge and appreciate the milestone and successful joint advocacy by tilly chang and our Transportation Authority staff, as well as the Transbay Joint Powers Authority with the support of our m. T. C. , commissioner ronen, and our other m. T. C. Reps on that body. I also want to thank work for the securing outcome, and youll hear a little bit more about that on our executive directors report. On a related note, im pleased to report that the executive steering committee, which, colleagues, youll remember our deliberations about reform in that agency, held its inaugural meeting in july and adopted our nominee, tilly chang, as its chair. Good luck for more work, and we look forward to the team for more great outcomes. Unfortunately, and we can schedule at our next meeting a hearing on this, but i am extremely disappointed and saddened that after five months of closure of our subway under market street, that we still have problems with splices and got off to a terrible start yesterday. It is extremely disappointing, and i would like to schedule a hearing on that. I know that the director of transportation director tumlin wanted to speak on that, but insofar as its not on the agenda, i was advised by counsel that we cannot discuss it in this meeting. Finally, congratulations are in order for cynthia fong, Deputy Director of finance and her administration, for achieving a certificate of excellence in financial recording by the governor finance officers association. For the third year in a row, ms. Fong, and to your team, congratulations for this Outstanding Award and for your stewardship of our taxpayers dollars, and with that, colleagues, i conclude my remarks. Is there any Public Comment on the chairs report . Clerk chair, let me check. Chair peskin thank you, ms. Milton. Operator you have no Public Comment. Chair peskin Public Comment is closed madam executive director, your report, please. Good morning, and thank you, chair peskin, good morning, commissioners. In addition to chair peskins congratulations, id ask for this meeting to be added to your calendar so we can discuss particularly the budget and work program. So thank you to each of you and your staff. Ill lead off with an update on the state level. State legislation is moving along, and the statutory deadline for bills to be approved is august 31. Weve been tracking these bills, and we dont have an update for your agenda today, but we will in the next meeting. Only a few of the Top Priorities are advancing. Of the bills the t. A. Has taken a position, only a few are still active. Senate bill 288 from senator wiener, from which we currently have a watch position, which has to do with ceqa reform, passed out of legislation next week. There would also be theyve added certain requirements for Public Meetings before and during construction and established a sunset date of january 2023. So those are some updates on that bill. We are also following a budget trailer bill, sb 815, which would allow for gas tax funds that are currently direct via formula to transit agencies to be used for transit operations. These are normally used for state of good repair maintenance Capital Projects, but the state is allowing through this bill to allow for transit operations to use them to avoid cuts in service. So its the regulation that allows federal funds to be used that we talked about last month. So we will provide an update on those of these as well as other bills on the september 15 meeting as well as a federal update that includes updates on representative Ayanna Pressleys freedom to move acts. Acts are due for bicycle and pedestrians projects, including a 220 million statewide program, and a 37 million Regional Program administered by d. T. C. So we will be submitting a package for the yerba buena design pathway. We talked about this at the timma Committee Last month, and other projects are the Fulton Howard streetscape project, which will include best of my knowledge and longterm improvements on those streets. Also, m. T. C. S application with the Alameda County transportation commissioner is also of interest because it included design of improvements connecting the west bay path to oakland. The Water AuthorityTransit Agency and the downtown transit project have created the ferry project, an upgrade to the ferry gates and a beautiful new plaza, including some overhead weather protection, as well as improving Emergency Response capabilities. The project will include future services, including service to Treasure Island and some east bay cities that are included to 2030, and we did contribute about 2. 7 million to that project. Were happy to support that project through design and construction. As you recall, weve been tracking these after the board approved funding for the l. R. B. Funding, the expansion vehicles that came in and were used recently, but also the 151 existing replacement of existing 151 l. R. V. S. I think first vehicle is expected last month. On the downtown rail extension, thank you, chair peskin, for mentioning that. Ill just mention that Deputy Director from m. T. C. Was elected [no audio] as well as early phasing studies, so that will be a monthly meeting, as well as our e. F. C. Meetings, and you can find information on the tjpas website. On a related note, the executive directors of the Water Transit Authority and Municipal Transportation Agency have announced their retirement, so i want to congratulate them. We also appreciate, of course, director mark zabanehs service at the transboy joint powers authority, managing through some tough times but always with transparency and ultimately being able to celebrate with full confidence this beautiful new facility for the region, as well as his shepherding of the d. T. X. Project through the approval stage at the federal level. So best wishes to them in their retirement and their future endeavors. The lifeline Transportation Program at the state level, we have some applications underway. These were reviewed at the t. A. Board, Transportation Authority board last month. For sfmta, these will be utilizing these funds for the lifeline Transportation Program and the folks using that, and the b. A. R. T. Transportation and redundancy project that we mentioned last month. Hopefully, your offices have seen some messages from our agency our news regarding an online game as well as other measures to folks to let them know about the studys progress. Theres an online game called unclog fog city to help understand the different tradeoffs in deciding the level of sea level in our city. We are sponsoring a telephone town hall and virtual town hall on august 26, tomorrow, in fact, and a workshop with s. P. U. R. And the Bicycle Coalition on november 1. We are also working with many, Many Organizations through Small Group Meetings as well as distributing fliers through food bampnks and other ways of getting the word out to folks in the community. I also want to thank and congratulate the sfmta for its outstanding work on the Bayview CommunityTransportation Plan as well as supervisor waltons office, d10 office. Theyve just received the california Planning Association award for excellence in opportunity and empowerment, so congratulations to that team. That was a fantastic project that brought together the community, including participatory budgeting, and d. T. C. Brought funds to support that, and we at sfmta have brought Forward Investments to that plan. Finally, i just want to add my congratulations to Deputy Director cynthia fong and controller carmen hui and the rest of the finance decision staff on the decision of the finance governments award. Chair peskin thank you for that. Are there any comments from members . Seeing none, is there any Public Comment on the executive directors report . Clerk okay. Were checking. Operator you have zero questions remaining. Chair peskin okay. Public comment is closed. Madam clerk, could you please read the next item . Clerk item 4, approve the minutes of the july 28, 2020 meeting. This is an action item. Chair peskin is there any Public Comment on the minutes of our july 28 meeting . Madam clerk . Operator you have zero questions remaining. Clerk there is none. Chair peskin Public Comment is closed. And is is there a motion to approve said minutes . Made by supervisor walton so moved. Chair peskin moved by commissioner walton and seconded by commissioner yee, beat commissioner fewer on that. Roll call please, miss melton. Clerk on the item approval of minutes [roll call] clerk we have ten ayes. Minutes are approved. Chair peskin all right. Next item, please. Chair peskin item 5, covidera congestion tracker and covid19 Recovery Scenario analysis. Chair peskin tilly, do you want to text joe to unmute. Sorry. Production, can you unmute joes mic, please . Chair peskin why dont we go to item 6, is that okay . Clerk sure. Chair peskin and we can circle back to item 5. Madam clerk, why dont you read item 6. Clerk item 6, preliminary fiscal year 202021 budget and pork progr work program. This is an information item. Let me take a moment to pull up my slide. Chair peskin yes, we are. So this is your first look at the fiscal year 202021 budget. Before i begin diving into the numbers, id just like to take a moment to review the t. A. S agency structure. We have 47 approved positions here across six different divisions. The t. A. Administers the prop a sales tax program, the 10 double vehicle prop d Registration Fee, the transbay prop mitigation tax, and we act as the local manager for the Transportation Fund for clean air. We have six different mandated responsibilities, and we have 47 staff approved by this board to carry all those functions out. Id also like to take a moment to recap on the sales tax revenue industry and also a moment how we did for sales tax revenues for fiscal year 1920. Here, we have a past look of fiscal year sales tax revenue. You can see here in 2012, we were collecting about 81 million of revenue each year. This was also the same time the federal department of transportation moved into a new communication system. And then, covid19 impacted all of us. We had collected revenue of 86 million, and we had originally anticipated we would collect 110. Im happy to tell you that we have collected overall 99 million. Now Going Forward in fiscal year 2021, we are anticipating collecting 91 million. We are expecting to continue to shelter in place, and well continue to report back how were doing. Excuse me, cynthia. Do you see the presenting box that keeps flickering on on my . I dont know if anyone else sees it, as well. No, i dont. Okay. Chair peskin and do you want to say how you came up with that . You didnt create a crystal box, you consulted with experts based on modelling, and i think its important to state that. Sure. Lets take a moment to state that. There is no crystal ball behind the curtain here. We are working with consultants in economics in addition to working closely with the Controllers Office, as well. They have a separate economist, so its great to compare two different thirdparty sources. In addition, joes presentation would have taken a look at how we arrived at some of these numbers, along with some tourist and Hotel Occupancy rates, we are looking at other considerations such as percentage of workforce in San Francisco thats able to work from home. Also, restaurants opening sales that impact sales tax in San Francisco. And wayfair collections we started receiving that tax in december, while that was assessed back on april 1 of 2019. There are a lot of different factors that go into these revenue estimates. We try to remain conservative, trying to monitor whats happening in San Francisco, including mayor breeds current orders for San Francisco. All right. Is that good enough . Chair peskin thats great. Okay. Ill go on. We are looking at 20 more revenues as compared to last fiscal year. As you can see on the chart, the gray chart represent the 2021 budget, while the blue represents the projected budget. There is [inaudible] and bridge structure project. Mainly, the south gate realignment project. As you may remember, we had begun construction on that project in june of this year. In addition, vehicle Registration Fee represents 3 . We city a small see a small decrease due to covid19 impacts. Our transportation mitigation tax represented 5 . This is a new tax for the t. A. We began collections on january 1, 2020. We had anticipated collecting, for the first six months, 7. 5 million revenue. We had budgeted 3. 2 and actual collect ended up to 2. 5. So we were estimating with the Controllers Office and sfmta, 7. 4 million for a full 12 months for the are Traffic Congestion mitigation tax. Now interest and other revenues represent less than 1 . Majority of the cash that the t. A. Holds fits with the fits with the treasury pool office citys treasury pool. Let me move onto expenditures now. Just to highlight first, our main source of expenditures are proposition k. This is seeking the largest reimbursement request for the current year. The majority of expenditures, approximately 45 million. Will be going to sfmtas light rail vehicle procurements. Sfmta is the sponsor that receives the most funds from the t. A. S prop k program. In addition, well have large reimbursement from several places, including the San Francisco public works geary resurfacing project. Executive director tan will go more into detail in her presentation of the agencys work plan. Great. Thank you, cynthia. I have one more slide, tilly. So expenditures, this is the last slide. Expenditures, we are looking at an increase of 15. 5 . As you can see, the Capital Project costs thus far are the ones that represent 85. 6 of expenditures. In addition to the expenditures i just indicated on the last slide, we anticipate lower than usual prop k expenditures being carried forward. Our operating cost, this represents about 5 of the t. A. s budget. We are anticipating an increase in personnel costs of approximately 10 . These are related to positions that we had removed from last years budget and now anticipate hiring these positions. They are the real program manager, a senior Transportation Planner, and a Transportation Planner. In terms of operating costs, we have barely a change here. We have less operating costs than last year, and then, we have debt service costs. This represents 10 of the t. A. S budget. Now, this is for fees, principles, and interest for the sales tax revenue bond and in addition to maintaining our 140 million revolving credit loan agreement. This is a line of credit that the agency has had for the last three years. Our debt program has allowed us to be more flexible in delivery of prop k pr