[roll call] you have a quorum. Thank you. Next item, please. Item 2, general Public Comment. Allows member of the public to comment on matters that are within the Small Business commissions jurisdiction but not on todays calendar and to suggest new agenda items for the commissions future consideration. Discussion item. I presentedd to on your binders a Public Comment that was received before the start of the meeting. That would be applicable under general Public Comment. Great. Do we have to do anything to recognize that comment . Nope okay. So are there any members of the public who wish to speak on any matter that is not on todays agenda . Seeing none, comments closed. Okay. Please call item 3, 4 and 5 together. Okay. Item 3 board of supervisors file no. 200086, planning code zoning map, bayview industrial triangle cannabis restricted use district. Ordinance in amending the planning code by amending the zoning map to change the use classification of certain parcels in the bayview Industrial Redevelopment project area from m1 Light Industrial and nc3 moderate scale neighborhood commercial to pdr1g and to change the height and bulk classification of certain parcels in the project area from 40x to 65x, affirming the Planning Departments determination under the California Environmental quality act and making findings of consistency with the general plan, discussion and action item. Item 4, board of supervisors file no. 2000087, planning code, zoning map, bayview industrial triangle cannabis use restricted use district to create bayview industrial triangle reschool districted use district, discussion and action item. Item 5, board of supervisors file no. 200144 police code ceasing acceptance of new applications Cannabis Retail permits. Ordinance amending the code to provide that Cannabis Retail permit applications will not be accepted as of the Effective Date of this ordinance, and affirming the Planning Departments determination under the California Environmental quality act. Discussion and action item. I move these items be continued to the march 23 meeting at the request of the supervisors office. I move. Motion by commissioner adams to continue items 3, 4, and 5 to the march 24 meeting. Seconded by commission zouzounis. Roll call vote. [roll call vote] motion passes 50 with two absent and. Item 6, presentation, San Francisco metropolitan Transit Agency fiscal year 2021 and 2022 Budget Discussion item. The presenter is director Jeffrey Tumlin of the s fm ta. Welcome, director. Thank you. Good evening, my name is Jeffrey Tumlin, im the director of transportation for the s fm ta and we are here to present findings on our budget that will go into effect of july 1 this year. I have been at s. F. M. T. A. For just over two months and im wading deep into the data. A lot of the data are not very impressive. If you look at the highlevel indicators of success, everything is going rather poorly. Congestion is increasing significantly. Greenhouse gas emissions from the transportation sector now account for about 50 of San Franciscos total Greenhouse Gas emissions. Fatalities and injuries going up again rather significantly, whereas mode for walking and biking and transit is declining. For many of the things we care most about, things are getting worse, and we understand the causes. One of the core causes for many of our transportation problems is our Regional Housing policies. San francisco and san mateo counties have addedded about 2,000 jobs every month since 2011 while add only 400 housing units. While we in the transportation world have to clean up the mess of failed housing policies where we force people to commute longer distances as opposed to allowing them to live near their work. At the same time we are also creating problems for the medical profession as a result of these transportation failures, adding to injuries and fatalities. We know that as people have shifted towards driving, not only have driving speeds declined, but the ability of our Transportation System to move people is also in decline at the same time we are being asked to deliver more people, that all of this Economic Activity requires greater efficiency out of our Transportation System and our system efficiency is declining. That said, when you look beyond the macrolevel data and look at the work that the s. F. M. T. A. Is actually doing, all of our projects, the things that we are actually investing in are having extraordinarily positive results. Our muni investments in the Muni Forward Program where we are making 100 small improvements to improve bus speed and reliability are significantly increasing travel time, reliability and more importantly ridership. Ridership is up as much as 60 on lines like the five and five rapid. Similarly where we are envicinitying in protected bikeways or other safety improvements, we are seeing huge improvements in bike ridership and very positive results in terms of safety. One of the things we discovered last week is one of the changes we made to the quick build component of Market Street is Market Street has the highest peak period bike and scooter ridership of any corridor in north america. We understand that when we apply these solutions, when we focus on the movement of people rather than the movement of vehicles, and when we prioritize the most spaceefficient modes of transportation, that our streets can move more people, that we can accommodate economic expansion while also improving quality of life. Similarly when we prioritize those investments for the people who need them the most, the people with the fewest choices, we can reduce Household Expenditure and transportation, and we can expand job accessibility, training accessibility and other opportunities for the people with the fewest choices. We understand where the solutions lie. We have demonstrated success in implementing the solutions and unfortunately the thing we need most in order to continue this path is additional resources. And thats really a big part of our challenge. We also have challenges around people trying to understand really the nature of the problem. Here in San Francisco, theres generally broad agreement on progressive goals. When it comes down to doing actual implementation, every bus stop is sacred, every parking space is sacred. As san franciscans, we love our community, and we are deeply resistant to any sign of change on our block. And so change is hard in a city like San Francisco. We also have the same problems that many of your members are experiencing as Small Business owners, the challenges of trying to attract and retain staff as housing becomes far more expensive than its ever been. We as an agency have about 1,000 vacancies in the s fm ta which negatively impacts our ability to deliver basic services to the public. We also operate in a very complicated world where people, because they use the Transportation System every day, think they understand how it works. People believe that adding another lane to a highway actually helps with congestion whereas the data is clear that adding highway lanes worsens congestion. Similarly, people have a hard time understanding the complexity of the Transit System and think what seem to be obvious solutions, in fact dont really work in practice. We also have a lot of common customer frustrations. Everyone who experiences the Transportation System every day has concerns about personal safety and security. Our buses, are very, very crowded. And while we are getting significant improvement in the reliability and quality of service in our bus system, for those of you who take the subway every day, weve got some significant reliability problems as a result of deferred maintenance and aging infrastructure. All of which were trying to solve for. And for many people, while they want to be able to walk or bike or take transit, the fact is weve designed the city, and people have designed their lives such that the only reasonable choice is driving. For those people, the best way to make it possible for them to continue to drive when they need to drive is to make it more practical and more delightful for people like me to do something other than drive. So we know what we need to fix. We have a reasonably good financial basis where were starting off from. But we also have a 66 million structural deficit, because thats how municipal governments are structured in california. Our costs rise with the cost of delivering service. Our expenses are driven entirely by staff, and its critical for us to provide a basic living wage for staff. We dont pay our staff lavishly. But we pay them enough in order to be able to attract people to the job and keep them committed. But the fact is the cost of living in the bay area is rising far faster than our wages are. In the meantime, our revenues are rising with inflation. So here we are, perhaps at the end of a peak boom cycle. And the gap between revenues and expenditures widens, leaving us with a structural deficit. Im going to turn the presentation over to our chief financial officer,ley yo levee le o levinson who will talk about supporting the Small Business economy that is so essential for us to be able to get the revenue we need in order to run the system and make sure that the people of San Francisco dont have to get in their cars and drive so far because the needs of daily life are available within their neighborhood. Leo, please. Thank you, director. Its really been a delight since jeffrey came that we have a director who is not only understands the Transportation System but also the financial challenges of operating within the constraints that we have. And so we have a big challenge here like every City Department in these circumstances as jeffrey said. When we are putting together our next twoyear budget, we are trying to look both at Financial Sustainability for the longterm and resilience in the face of potential downturns and hits in the economy and looking at what service is being demanded from us and are there ways that we can close that gap and go to the public and make a case that its worth it to fund this Transportation System to provide the kind of service that they should expect. As director mentioned, we have a structural deficit, we estimated at 56 million as we were starting to put our budget together this year. Thats the difference between the ongoing revenues that we have and the cost of providing the service we are providing now and looking forward, that was growing over 100 million as we looked forward. These are figures that we provided at our budget workshop with our own board, the mta board, in february. Weve been working on these numbers since then. And we are going to be actually required to close that budget gap on march 17. We are going to our board with a balanced budget proposal, not only to see how we deal with that gap but also the demands for improved service that weve been given. Director mentioned the revenues. This is a quick snapshot that the top line here, we are very fortunate as a Transit Agency, transportation agency, that we are both, we have combined running a Transit System and the parking system for San Francisco. We were formed by the merger of the department of parking and traffic and the old muni. And we have a tremendous public support in San Francisco that provides us with a portion of the general fund in order to make a really highquality Transportation System work. And the general fund has been our savior during these past years of the boom while our other revenues have been flat or declining. Thats the main story of this particular slide is the top revenue is the combination of our parking and traffic fees, our parking meters, parking citations, the garage tax, parking tax, all of those have been flat to declining in recent years. This is something youll see nationwide with parking is a trend that you can see. The second line, the blue line thats going up, thats our general fund transfer. And thats where weve been getting a share of the amazing economy that San Francisco has enjoyed. This projection was made from the Controllers Office prior to this coronavirus. And what we are seeing. So of course we are going to be working very closely with the we city in updating these projections as we look at the Economic Impact. The next line down, the darker blue line, thats our passenger fares. And the decline there is a couple of different things. One is somewhat of an overall system decline in ridership or paid ridership. But we also during this time period, we did introduce a number of equity products to lower the cost of transit for our most vulnerable populations so during this time period we instituted a lifeline fare at half the monthly fare for lowincome individuals and free for lowincome youth during this time. So that is part of the revenue decline. And so more recently, its been sort of flat, not as severe a decline, but thats something that we are actually doing a little better than transit agencies around the country, which have seen a more severe decline as the other options have come up with the Transportation Network companies. And then the final one is the state operating grants where just recently, again, this helped us, there was a bump up in the last years, so the passage of the statewide sb1 that supported transit, but we dont expect the state funding to be continuing to go up in that regard. We also have tremendous Capital Needs in the agency. We estimate we have about 14 billion wort of assets to look not just at our Transit System, our subway stations, also the parking meters, the Traffic Signals and our own facilities. And the Capital Funds that we expect to receive are also declining. We received quite a lot of federal support for the central subway extension that were very excited about, and we are going to be continuing to work on. And that, however in the next period we dont expect that kind of influx of federal funds. So we are aggressively looking for whatever Funding Sources we can get. We dont expect the same level of funds coming in in the next period that we enjoyed during the last fiveyear period. We also do an analysis like the city does of potential for an economic recession and what the impact would be on the s. F. M. T. A. s revenues in particular. We looked at the last major downturn in 2008. And that was a fouryear period to recover. And based on that, the equivalent would be about 160 million worth of lost revenues to make up for plus extra expenditures to keep the Pension System whole. So we are looking overall at 200 million scenario recession. So we are trying to keep that in mind of trying to find adequate reserves without a worse shock to the system. This is probably more detail than you want to see but this is what we presented our board in terms of the requests that were coming in for improved service. So in addition to the 66 million shortfall that we had to start with in our bumming process, we had in our budgeting process, we had a working group, a wonderful working group with the board of supervisors and our own board to brought in experts from around the country in transit to talk about what was needed to improve our service to the level that the public would expect. They have a lot of good recommendations, and basically we needed to fill the staffing holes that were described, improve some of our, we are working on improving our train control systems in order to make the subway more efficient and then basically we need more operators and more service to meet the growing needs of San Francisco. The estimate just for the next two years was about another 70 million, another 90 million after that. So we were scouring for what were our options in the budget in terms of increased revenue. And this one i want to mention, when were looking, from our agency we really are missiondriven lens that we look. And so we arent looking jus for how to raise revenues but how to improve the Transportation System in a way that may also increase revenues. And so one of the items thats been sensitive in the past was the issue of increased hours on our parking meters. With the idea that its targeted at areas where businesses actually were asking for more turnover, where the parking is congested because the hours of the businesses continue into the evening, and when our meters end at 6 00 p. M. , customers cant come. Similarly in neighborhoods on sundays where theres congestion for parking. And so we put forward a proposal for a range of options looking at targeted corridors, and thats something that our board is considering now