tv [untitled] May 18, 2014 7:00am-7:31am PDT
called for in the state of the city speech, the bond and the vehicle (inaudible). and the mta board approved our two-year capital budget and bringing to the mta board next week, that should be publicly available probably today. gives a deep detail on every project in the full cip. just as a mentioned last time, if you look accumulatively over time, what it capital budget represents is a significant increase in investment and bike and pedestrian safety. and i know that has been an interest of many stakeholders and the board. i covered this last time, very significant investment in implementing walk first and implementing vision zero.
significantly investment to continue the bike strategy. and we mentioned of the task force that the mayor got people through the city for the $10 billion need in the next 10 years. what the task force recommended was $3 billion in local revenues. starting in november, the general obligation bond. they thank you for endorsing as it was introduced this week. and as well as the restoration of the vehicle license fee back to 2%. which together would generate $1.5 billion over the next 15 years. >> can you step back to vision zero. what types of staffing structural changes have you made
around project delivery? any other new staffing that has come about with these projects? >> for all of our capital program which is growing as a result of some of the funding that is coming in. we have been staffing up in terms of planners and engineers, construction managers. we have been building the staff capacity to do the design and oversee the construction. we have also been engaging much more closely with the department of public works that does the actual delivery of some of these projects. we are aligning the resources and doing the workforce planning so we can respectfully plan the work and get these things in the ground. i wouldn't say that we have restrur restructure anything but we have staffed up and doing the analysis so we have the resource in place to deliver on this fairly significant increase in
funding. i think -- >> have you hired all the staff that you need for walk first and vision zero? we are in the process of hiring, we don't have all the revenue in place yet. we have to somewhat meter our hiring based on the revenues coming in. we don't want to overhire and have to lay people off, if all the revenues don't come forth. right now we have the staffing in place to advance the projects through planning and design. to get them ready for construction. and then once we know what the revenue picture looks like, we'll be able to staff. the majority of the dollars are going into construction. so what we are doing now, using our staffing to get the projects through planning and design and get them ready.
i do want to remind folks that with these recommendations, with these two measures on the november ballot, it would give us local revenues that would allow us to match regional revenues and bring in additional $550 million into investment and core of muni and infrastructure. so what is at stake here is not just the 1.5 on the ballot. but at least already another half billion that has been identified that we would be able to leverage with these dollars. it's a pretty significant investment we would be able to get assuming we get the measures on the ballot and approved in november. specifically if we look at the two years of the budget, of the $500 million general obligation bond, we would have $120 million coming, that comes through
general supplemental at the time of the sale of the bonds. the first bond sale would be early, 2015, assuming passage in november. in terms of new general fund revenues generated by the vehicle license increase, they are proposed to be split, about $75 million, and in the second year 34 going to dpw and 32 to the mta. and you will see those amounts when the general capital budget comes through, and on the slide you see the improvements that the first years of the dollar would generate. if you look over the 15 years, a couple of big categories of improvement. muni forward. which is implementation of the tdp recommended improvements, and fleet upgrades, and
infrastructure upgrades, over $15 million and over vision zero and improvements towards vision zero, that's half a billion as well. there is a lot of investment in here to make muni better and to make our streets safer. and it probably goes without saying, i think supervisor breed asked at the last hearing what is plan "b". and we don't have a plan "b" at the moment. if we are not able to bring these revenues forward, we will not be able to address the things, supervisor avalos, to make muni service a better option and dealing with the environmental impacts of not having a strong transit system. and as well as not addressing
the bicycle and pedestrian safety issues. we know what to do at each intersection and corridor, it's really having the funding in hand to make the city safer. in terms of the operating budget, this is a breakdown of the revenues. i won't go through the numbers, happy to answer the questions, these are a breakdown of the expenditures, and i said that muni is the line share of the budget. i want to highlight that fares are indexing up as per the policy put forward by the mta board in 2009. proposed 3% transit increase in the first year, and continuation of free muni for low and moderate-income of kids, thanks to the gift of google. and expansion of that program to 18 year olds. i will skip the next bullet
since we covered that. and there is some administrative costs that we are able to reduce. and then some things that we have put kind of in contingent category subject to a fiscal review. there were other things that were raised that did not get recommended or included in the budget. such as a hiring increase for the f-line. such as reducing the line as we discount the senior and youth, and disabled fares. as well as a discount for clipper users. these are things that we had on the table, but were not advanced in the final budget. with regard to the fiscal review, we have a lot of unknowns right now. we are in the midst of labor negotiations, the contract expiring on september 30, and the highway fund runs out of
money this year. the state budget is up in the air, the governor put out his revise, and senator steinberg will have a meeting of impacts that can affect the transit. and our measures that we hope head to the ballot on november. altogether will impact what we are looking at as we look forward with regard to the physical health of the agency. what the mta board did is take some things that we are seeking to do and make them subject to review of the agency's finances in 2015, when we will have a better handle on all of those things they mentioned. what is in that bucket is expansion of the free muni program to seniors with disabilities and of low and
moderate income. further increase of the transit service recommended by the tdp. and funds to clean the vehicles and keep them in good shape. and some fees that we currently charge for certain sorts of transactions. in accepting and adopting this approach, my board did explicitly take action to specify that the expansion of the free muni program will be the top priority. if not able to fund all. and directing staff to work now to get the wheels moving to implement as soon as possible assuming they authorize the funding as result of that review. i mentioned we are currently in labor negotiations, you have a question? >> i do, in fact on the fare increase. how does the increase occur? does the board vote for it?
or is that formula driven by charter? >> it's formula driven by mta board policy. and they adopted the formula result as part of the budget. it's coming to you as part of the budget. >> right, if you don't like the fare, i could vote the budget down, but not the fare down? >> you can vote the whole thing down. >> got it. so what is the 25 cents index or increase, called increase, how much does that bring in this terms of revenue overall? >> the fare revenues overall is $200 million, 20-25% of the budget. in terms of what that quarter, what percentage of those fares come through the cash fare. >> so the incremental 25 cents
in the fare can bring in more cash than years ago. >> okay, what was the cost of the metering? >> the gross cost was $11 million. >> so we eliminated sunday metering but raised fares on riders? >> there are a lot of things that are happening in this budget and those two are two of those things, that's correct. i mentioned we are currently in the final stages of our labor negotiations. and don't know the outcome of those. and point of reference regarding salary, for every 1% across the board salary increase, it costs us $5.5 million. once those negotiations are done, we will have to
incorporate whatever cost in the budget and rebalance. so i guess where we are is just getting our budget finalized through budget and finance committee and the board of supervisors. these are some of the deadlines that are in place, that are relevant to our budget. again assumed in our budget, and with regard to the fares the ind indexing will take place on september 1, to give us outreach and changes. i am happy to take anymore questions. >> okay. colleagues any other questions for mr. ruskin? okay. we are done with our three departments for today. we will open this up to public comment. anyone that wishes to publicly comment on items 1, 2 or 3,
please come forward. >> i filled out a card, mr. chair. gilbert krizwell. new district 8, where did the surplus go? i remember the last time that mr. riskin was here, they had a surplus. the mayor and mta have turned their backs on people living with disabilities and people with h.i.v. making us wait until after the november election, why wait, do it now. reject the mta budget, freeze them out until seniors and people with disabilities ride muni for free. until the mta and the mayor care about seniors and people with disabilities. and people living with aids and h.i.v.
give us some relief now. this crisis of affordability, this crisis of housing, this crisis of transportation has an effect on everyday citizens. this age crisis, let's talk about the give aways already given away, the google buses, gen-tech buses, sunday freebies, a revenue program for the mta that could pay for the program for seniors and those with disabilities. you want people to vote for your november ballot? why don't you give us a free ride. thank you. >> next speaker. >> morning, supervisors, thank you for having this meeting. i am a senior in disability
action. in regards to the mta budget, i first want to acknowledge the great work with riskin and the commissioners and the board. especially the board of supervisors, yee and mar and co compost, and kim. and because of the work we support the mta budget the way it is, based on all the work that is going on. especially with all the issues that came up. that affect seniors and people with disabilities. vision zero. the free muni. equity. there is a lot work that has been done. but also we support it because of the commitment that the mta commissioners that have put further to resolve some of these issues that have not been resolved yet. again the same issues i mentioned. we support it and we very
looking forward and encouraged to continue this work with mta especially start, the holiday season start when everyone is in a good mood, and work on these issues and we can move forward and provide the type of muni service, mta service we look forward to. >> thank you very much. are there any other members of the public that wish to comment on items 1, 2 and 3. seeing none. public comment is closed. supervisor mar. >> i want to thank mr. riskin and mrs. bose and martinson, for the hard work moving forward so many big items to improve our transportation system, and i know like others that the november ballot and future ballot s are critical for fundig for our transportation system. i want to applaud you and i know
that you are balancing and juggling quite a bit. and i wish you luck in the labor negotiations and i know how that impacts the overall budget as well. and in your slides you said there is 24 different bargain g ing -- bargaining units and my hope is that the employees receive something positive. and i hope that in the zero vision and walk and hope that funding for the other bus rapid systems throughout the city is a key part for the future. and like senior and disability action, as we expand free muni for younger people. that we have equity in mind to think about lower and moderate income with disabilities and
seniors as well. and i know that you are working on that as well. i thank you for presenting the budget. i have concerns like supervisor avalos but i feel that you are working in good faith to keep us informed on the moving pieces as well. thank you. >> thank you to all department heads for coming today. colleagues i suggest, i would like to entertain a motion to continue items 1, 2 and 3 to next week's meeting. just quick. before we do that, just in terms of intentions. i think that child support services, my sense that we are going to be okay with their budget. and i don't think they need to come back next week. we are going to make amendments next week to the retirement budget, and director hewitt wants to be back. and mta, we will be in touch. whether there are continued
questions before we pass it out. but we will continue, and that is part of the items for next week as well, but we will be in touch about that. can i have a motion to continue items 1, 2, 3. >> moved. >> motion and second. madam clerk, call item 4. >> item 4, resolution concurring with the controller's certification that services previously approved can be performed by private contractor for a lower cost than similar work performed by the city and county. >> good morning, mr. chair and members of the finance committee. as we spoke to this item yesterday, there are a number of enterprise departments that have ongoing contracted services and the certification is required by the controller that it is indeed less costly to provide the services through contracted out services. rather than for civil service, and before you today is citation
processing, and towing services, and paratransit services, security and shelter, transit services for the mta. >> okay. thank you very much. and to be clear, we can't pass this out today? >> you can pass it out today, you have the public utilities commission next wednesday, however, this item has been agendaized for today, you pass it out today if you wish. >> we have not agendaized this for next week yet. colleagues any preference? i am comfortable to pass it out today unless we want to hold it over to the other departments. good, we will entertain a motion to do so. first open up to public comment. seeing no one left in the chamber. anyone else that wants to publicly comment on this item? seeing none, public comment is closed. with that supervisor breed you want to make a motion to move