encouraged to apply. thank you again for hosting us. >> thank you for including us in "culturewire." ♪ >> parking authority commission. please read the role. >> frank man. >> present. >> director lee. >> present. >> know land. >> present. >> president -- director ramos will not join us today. sound producing devices, please be advised that the use of cell phone and devices are prohibited at the meeting. any person responsible for one going off, maib may be asked to leave the room. cell phones that are set on vibrate do cause microphone interference, so the board respectfully place that they'll placed in the off position. item 4, approval of the minutes. the the march 4th. >> motion to approve. >> second. >> second. >> all in favor say aye. >> aye. >> thank you. >> item 5, communications. >> members of the board, with your consent i like to rearrange the agenda. and we'll go to the director's report and then public comment. members okay with that. okay. >> please be advised that there will be no discussion of labor negotiation anticipate litigation in closed session today. >> thank you. >> moving on to now to the consent calendar. these items are considered to be routine and will be acted on by a single vote of the board or unless a board member or the public request separately and no peoples of the public have asked that items are severed. >> motion to approved. >> second. >> any further discussion. all in favor say aye. >> aye. >> we move to the regular agenda. item 11. a system wide survey conducted on -- addressing the demographic and travel behavior of mini customers. >> riskin. >> thank you chair noland. >> i'm looking for the staff who is going to present this report who i don't see. >> move to item 12, shall we. >> item 12, presentation and discuss regarding proposed service and route changes as part of the transit effectiveness project including a ten percent increase of rvice and crowdedness and lower ship rideness. >> same comments. >> if you can just give us one minute so we can just check and make sure that staff aren't out there unaware of the change and schedule. >> i guess we could do budget first. >> yeah. or you could start public comment before the presentation. >> no. >> got. >> so are you ready for the budget mr. risken. >> i just sent my budget director out to find the other folks. so we could move to the budget item, maybe our change in schedule caught folks off guard. >> okay. item 13, presentation discussion of the fy 15, 16 operating budget including possible changes to various fairs, fees, rates and charges, possible new revenue sources and new expenditures and expenditure reduction and the discussion of fy 15-16 capital budget. >> so our chief financial officer mrs. pose will walk us through this presentation. i'll probably jump in at a few points. some of it is what you've already seen, so we've move through that quickly and some respond to the questions and comments you made and the operating budget and the initial cut at trying to incorporate some of the things that we heard you say you wanted and not incorporating some of the things that we heard that you didn't want and you'll see what we have ahead of us in the next two weeks to get to a balance budget. >> this is a matter for discussion, presentation? >> correct. actually all of the remaining items on the agenda are informational only for the tep item will be coming back to you on march 28th as an action item and for the budget as early as april 1st and possible april 15th. so these are informational only, really to gather your comments and the comments of the comments on these items. >> good morning, thank you director. i'm going to start on slide 7 which just repeats the baselines where we started several weeks ago just to remember that we had a little bit of a positive balance for the first time, and the positive balance however did not include several big line items. mostly the wage increases for labor contract and travel increases and the structural reface and the request from the department and that's listed in the bottom of slide eight. so at the last board members, several board members asked questions and the last slad answers your questions. and the first question was how -- this slide is hard to read but the answer based on the calendar of 2013, the citations on sunday is 39 percent of the meter revenue plus citation revenue combined. on other days it's in the high 20s, so it's slightly higher but that's expected for a new project as people are adjusting to paying for the meters on sunday. if this continued, we would see the citations on sunny kwaul on any other day. but we reported a high number and we had made an error and we forgot to report the paid revenue numbers. it's 39 percent which is better but it's still higher than any other day at this point. so that's the answer to that question. second question that we were asked is how much could we increase the life land threshold beyond the existing 200 percent poverty level right now. using revenue by the increase and discount of 50 percent for those who can pay. the answer is in the range of 200 to 250 percent which will add individuals to the program if that was the desire of the board. these are all estimates and projections, our best projections, we don't really know how much of it will actually materialize if you were to do that, you that's our best guess. >> thank you. >> the next question we were asked is what will be the impact if we were to increase the cash fair from 250 -- from $225 as originaled proposed to $250 while holding the e-cash down to $2 and if the numbers were based on today, it would be $4.6 million and the revenue will increase from that. if the cash fair were higher than the e-fair, more people will use clipper and more people will navigate to use clipper, it will be less of a revenue. 33 percent in the cash fair, that increment revenue will decline to $2.9 million. this is what the slide shows. and 25 percent, and 75 percent mix would be $2.2 million increments. the next question we were asked is should we increase the parking meter used for indexing. the proposal on the table is to index the fee from $7 per day to $8 in 2015 and 9 in 2016. we had to increase the rates and there's been concern by those so we chose to start at that level: it was $4 when we first implemented it, so we're doubling it if you approve this proposal. we looked at different zones and disregarded that because mostly collected by dpw folks, when they collect this. the average meter across the city for those who pay is 5.75 but there are difference in the zones. the maximum amount we could charge would be about $21.30 a day and that represents a loss meter revenue if every hour is paid at a meter on the average. so the proposal from 7 to 8 to 9 is higher than the average rate but lower than the maximum we could charge. that's for the board to determine. the next question we were asked, should we increase the contract of fee above the index formula. the proposal on the table before you is to raise it from $920 a year -- a month to 929 and 938 in 2016 and that's indexing. the contract permit fees is a combination formula and has been that way since it was implemented and it's a base rrp amount and 50 percent of the parking meter that you see that we just discussed. five-days a week and 52 weeks a year. 2800 permits are issued a year city wide. so fy 14 if we were to charge the maximum amount, the fee would have been $1,019 but the amount we're charging is $920 so we're charging a discount rate off the maximum fee, but once again if you remember, the attempts to have the fees raised did bring concern to the contractors and others using it so we decided to go down the index route. >> can i ask a clarifying question. for that contractor permit fee, what do they get? they can stay longer in rpp zones? >> they could park anywhere in the city of the meeting, but they can't exceed the time limits. >> they can't exceed the meter time limits. >> but they can stay in the rpp zones. >> when they're in the neighborhoods to do work? >> that's correct. >> it was my understanding with the contractors permit, if they're in the yellow zone, they can stay there all day. >> with this permit, it does allow them to stay there all day. if there is a time limit, they have to honor that time limit. there are maybe individuals who are not complying with that, but that's the rule. >> okay. >> this next slide gives the board and the public a look at how our rates on a regular and discounted pass compares to the rest of the city. so we're 2/3 a page down the yellow highlighted area and we are at the proposed rate at $68 a month and $24 for the discounted rate and as you can see we're in the middle to low end of the range of the cities that actually have this -- there's some who don't have a discount fair and those [inaudible]. >> when you say proposed these are the rates if we follow the standard formula. >> that's correct. >> the last three columns are, what is the discount amount for the del fair. we have a 65 percent discount rate, and the other cities have a different variety of discount rates, but the fta proposal is a 50 percent discount. some agencies have fallen within the 50 percent. others are more than 50 percent. and no one is -- >> just to clarify that, the fta rule requires discounting for seniors at a level of 50 percent so we wouldn't be able to do something less than that. i don't think that requirement applies to people with disabilities or youth. >> the director is correct. >> in this slide, this is slide 15 is the daily and weekly pass comparison with the base fairs. one of our recommendations is to increase the daily rate and the difference in our passport and most of the city is our passport allows the cable car ride which is a different animal. we're giving a premium ride on the cable car as part of this and this charge intends to compare or base fair, daily weekly passes with the cable car and regular -- so our proposal is to -- i should say 2.25. it should say $2. it's $2 and $6 for the base service verses a cable car and the one day passport, 3 days and 7 day passport are the proposed amounts and these -- the last three columns, gives you the rides you would need to break even based on that fare rate. many individuals -- transits do have a daily pass, but it's mostly on bus and rail. this is our first next slide is our first stab at balancing the budget. on slide 16, we've included the revenue line items on top of the base revenue plus and minuses, and some of the discussions we've had to date during the last three meeting. the base revenues are on the first row. we have offered out that we could potential use fund balance above the 10 percent threshold because we think we'll have that at the end of this fiscal year because our revenues are stronger. once again, that would be a one time revenue source, so that is an issue. we did get some better news from the city, we expect to see an additional million dollars and new parking tax and we added a goggle gift to the revenue side of the avenue. the next three line items are the policy items we've been having about expanding to 18 year olds and expanding the loan, modern and senior and senior and extending the youth to the teen program. and then the next two are increases on our fares above the indexing, so increasing the youth and disable to 50 to percent and increasing the passport price. a dollar for the 15-16 was best intended to say a one day is a $2 increase and fy 15 and a $3 in fy 16. so overall, $5 increase over the two years and that's what those figures will bring in. the next line item is custom service transaction fees so those who pay us don't have to incur the transaction fee. we had put into that place in 2010 because we had to do bad economic cycle to get through and then the next slide item is to increase the premium between the regular meeting pass and the bar pass by $2 and the premium currently is not $10, so that would go up to $12 if the board implemented this. at the next board meeting, an agreement was barred that you have to approve a bar increasing and provide a fee to us. this is intended to make us whole for this new contract. the last two line items are two policy items, it just creates equity across the system. it's minimal revenue but i think they're good policy choices for the board. next slide is our expenditure slide -- sorry. >> would you prefer to wait for questions or ask as they come up. >> can we go back to the last slide. i promise this will be brief and i know i've said that before. on the last slide, it looks to me like we have the extension of the premium for youth or low income youth as one item and there's another item that's the extension to the 18, are those two different items that one is extending the whole program which will cost $2 million and one is extended it to 18 years old and that's $900,000. >> no, the two different lines from 18 years old is a policy change and that's to change the youth which is 5-17, which will be changed from 5-18. the first line is the revenue lost with those will be dropping from full fare to half fare and the other line is full fare -- it will drop from full fare to discounted fare. the 18 year olds, we raised the youth fare to 18. the low moderate will pay zero and the others will pay a discounted paid. >> we think we're getting over a million dollars in revenue from the 18 year olds. >> from the low income revenue. this is based on the statistics we have access to. >> slide 17 is our expenditure slide: the first slide is a base. the second one as we were able to identify by 4 million in our budget to reduce and redirect to other line items, the third line item on here is a transservice increase of 3 percent and fy 15 and ten percent fy 2016. this is a ramp up over the two years. it's not that we would get a ten percent increase the first calendar 2016. it incorporates hiring and all the other things that has to be in place. there's a ramp up of the service, but at the end of 2016, these numbers are have an increase. the next item is preventive maintenance system and the next one is fleet and this is for graffiti clean up and clean up inside of the buses. in 2010 we had to reduce staffing so we lost the back end and the car cleaners and individuals like this, so it is intended to replace them. on the next line is operators and this is what we need for current service on the street. it's not included in the tp which is expansion, but the additional operators are to continue the existing service. the next line sdd is a streets division and they have the second biggest besides transit. and they have the back end shops and special events and equipment, et cetera. and this line represents their needs. and then the last one and the rest of us who have other needs that we would like to have funded and mostly the communication where we want to expand our efforts, safety where there is additional staff and other needs in that area. hr definitely for in terms of hiring up in the ban over there. what's not in this chart is our cpc or construction department or capital department. and any staff in the departments that charge a capital. this is truly operating. and so the rise expenditures as you could see are the second to the bottom line. once these numbers do not include labor. we did find out yesterday the city is now, instead of carrying a zero zero percent increase on this side, they're carrying a zero in fy 15 and 2.21 percent in fy 16. for us that translates to $9 million. so if we were to get 2.2 fy 16 we would have to add $9 million to our expenditure side of these numbers. there's going to be presentation on service at some point, but this slide in slide 18 summarizes what's in that service increase slide, a three percent increase in fy 15 and ten percent in fy 16. it could be higher as we walk-through the public comment periods. we may not be able to reduce the service that we were thinking, so it may be as high as 12 percent if we add the public basin put. i won't go through the slide but you know what the tp is about. it's trying to make our service stronger and meeting the growing demands of the city. >> mrs. pose i have a question to ask. on the expenditures, are we looking in any of the areas to reduce overtime to shift some of that funding elsewhere? because my concern is that the overtime just seems to be flat line and it matches our service level. i know there's a lot of challenges and equipment needs and so forth, but as some of that improves, the additional drivers come on, are we going to hold that same number or is there a plan reduction number and can that be applied elsewhere? >> our current overtime expenditure is -- we're increasing the overtime budget but fund the operators shown on slide 17 so we're using less overtime to deliver the service plan so it would be a good return on investment and it's a modest amount of operators compared to the amount of overtime that we're spending to back where we're lacking operators. part of the answer is it's not reduce overtime budget, it's reduce budget expenditures by filling in the front line staff. on sustainable streets, we're proposing some adjustment in overtime, representing in part the increase in special events and other activities, however, some of the discussions with regard perhaps to sunday enforcement and making changes there would potentially allow us to redeploy some of that resource that could help offset the other time burden. the overtime is something we're monitoring carefully, a certain amount of overtime can be more cost effective than hiring more staff, so we're trying to balance that need but where we think we can make the big impact in terms of expenditures is through the hiring the operators so we can provide more of the services rather than overtime. >> i understand a certain amount of overtime is needed, but my concern is the amount of overtime we're paying and how the numbers flat line. >> we did from two years ago to last year, came down by 20 percent, so pretty significant reduction. it has crept up this year that the budget for next year would have it coming back down. our budget for next year compares to this year would be a decrease again in overtime. >> okay. >> thank you. >> mrs. pose. >> this slide here, slide 19 is now an updated picture of our bottom line based on the discussion we just had. we're in the red looking at a $6 million deficit if fy 15 and 16.4 deficit in 2016. and in the next couple of weeks, we'll have to balance this number based on your direction. >> i want to move to the capital budget. this slide on slide 22, just on the bottom line, we had additional changes to the bottom line from the last time you saw the numbers, so what's happened sense -- since last time, we added revenues to add to our capital budget. there's a realignment between the years but before we had anticipated $676 million in fy 15. we're anticipated $749 million available for capital project and the number has flipped on the fy-16, so a total has gone up 15, $16 million, but this is a change between the two years. >> i like to share this slide. you haven't seen this. this is a growth. this is slide 24. it shows a growth in the capital side of the house which is significant over the prior five years and current five $24. it shows a growth in the capital side of the house which is significant over the prior five years and current five years. we wrote $2.5 billion when we came with a five year plan and we're a $3.2 billion and if you see the chart on the right side, that's made up of three distinct area, and the ttf and that's the transportation task revenue and the rest of the revenue which we call our base is 1.8 billion of the 3.2. there's been a lot of growth. the growth has been the streets area which is a bicycle and ped program. and the transit opzation has been growing a little bit and a state of good repair. that's good news for our programs on the capital side. this slide here is slide 25. it gives a snap shop of the dollars that's going to the problematic areas. bicycle has gone up over the five year period given our interest of improving those areas and traffic areas are showing large increases. so this is a new slide as well. so this is slide 27. so on safe and complete streets program, if you remember is a combination of a variety of our programs which is bicycle, traffic, our school program, access ability and traffic signals. we're projecting to spend $275 million over the five years gip and $1.9 billion on reality and transportation sub group. and i'm going to turn it over to tim pasendro who is going to walk you through the rest of the presentation. >> thank you. >> good morning mr. dale. >> good morning noland. >> we work

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