FILE NO.

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(FIRST DRAFT)

[Charter Amendment - Municipal Railway Fare Changes.]

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Describing and setting forth a proposal to the voters at an election to be held on November

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3, 2020, to amend the Charter of the City and County of San Francisco to eliminate the San

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Francisco Municipal Transportation Agency’s exclusive authority to fix fares by providing

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for separate Board of Supervisors authority to reject by majority vote Municipal Railway

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fare changes; to establish a policy for Municipal Railway fare increases; to require the

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Agency to submit various strategies in relation to key performance indicators and goals to

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the Mayor and Board of Supervisors every two years; to require the Municipal Railway to

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provide a level of service not less than service hours provided in April 1996; to revise

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minimum standards for on-time performance and service delivery for Municipal Railway

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rail routes, rapid routes, and frequent local and express routes; and to require the

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Controller to conduct an independent Municipal Transportation Quality Review or

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contract with a nationally recognized consulting firm; and affirming the Planning

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Department’s determination under the California Environmental Quality Act.

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Section 1. The Planning Department has determined that the actions contemplated in this

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proposed Charter Amendment comply with the California Environmental Quality Act (California

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Public Resources Code Sections 21000 et seq.). Said determination is on file with the Clerk of

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the Board of Supervisors in File No. ___ and is incorporated herein by reference. The Board

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affirms this determination.

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Section 2. The Board of Supervisors hereby submits to the qualified voters of the City

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and County, at an election to be held on November 3, 2020, a proposal to amend the Charter of

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the City and County by revising Sections 8A.102, 8A.103, 8A.104, 8A.106, 8A.107, and 8.108,

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to read as follows:

Supervisors Peskin. Preston
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NOTE:

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Unchanged Charter text and uncodified text are in plain font.
Additions are single-underline italics Times New Roman font.
Deletions are strike-through italics Times New Roman font.
Asterisks (* * * *) indicate the omission of unchanged Charter
subsections.

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SEC. 8A.102. GOVERNANCE AND DUTIES.

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(a)

The Agency shall be governed by a board of seven directors appointed by the

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Mayor and confirmed after public hearing by the Board of Supervisors. All initial appointments

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must be made by the Mayor and submitted to the Board of Supervisors for confirmation no later

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than February 1, 2000. The Board of Supervisors shall act on those initial appointments no later

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than March, 1, 2000 or those appointments shall be deemed confirmed.
At least four of the directors must be regular riders of the Municipal Railway, and

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must continue to be regular riders during their terms. The directors must possess significant

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knowledge of, or professional experience in, one or more of the fields of government, finance, or

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labor relations. At least two of the directors must possess significant knowledge of, or

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professional experience in, the field of public transportation. During their terms, all directors

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shall be required to ride the Municipal Railway on the average once a week.

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Directors shall serve four-year terms, provided, however, that two of the initial

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appointees shall serve for terms ending March 1, 2004, two for terms ending March 1, 2003, two

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for terms ending March 1, 2002, and one for a term ending March 1, 2001. Initial terms shall be

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designated by the Mayor. No person may serve more than three terms as a director. A director

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may be removed only for cause pursuant to Article XV. The directors shall annually elect a chair.

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The chair shall serve as chair at the pleasure of the directors. Directors shall receive reasonable

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compensation for attending meetings of the Agency which shall not exceed the average of the

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two highest compensations paid to the members of any board or commission with authority over

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a transit system in the nine Bay Area counties.

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(b)

The Agency shall:

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6. Notwithstanding Section 2.109, and except as provided in

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Sections 8A.106 and 8A.108, have exclusive authority to develop a schedule offix the fares

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charged by the Municipal Railway, and fix the rates for off-street and on-street parking, and all

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other, rates, fees, fines, penalties and charges for services provided or functions performed by the

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Agency;
****

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(c)

The Agency's Board of Directors shall:
1. Appoint a Director of Transportation, who shall serve at the pleasure of the

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Board. The Director of Transportation shall be employed pursuant to an individual contract. His

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or herThe Director’s compensation shall be comparable to the compensation of the chief

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executive officers of the public transportation systems in the United States which the Board of

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Directors, after an independent survey, determine most closely resemble the Agency in size,

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mission, and complexity. In addition, the Board of Directors shall provide an incentive

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compensation plan consistent with the requirements of Section 8A.104(k) under which a portion

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of the Director's compensation is based on achievement of service standards adopted by the

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Board of Directors.
****

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(e)

Upon recommendation of the City Attorney and the approval of the Board of

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Directors, the City Attorney may compromise, settle, or dismiss any litigation, legal proceedings,

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claims, demands or grievances which may be pending for or on behalf of, or against the Agency

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relative to any matter or property solely under the Agency's jurisdiction. Unlitigated claims or

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demands against the Agency shall be handled as set forth in Charter Section 6.102. Any

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payment pursuant to the compromise, settlement, or dismissal of such litigation, legal

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proceedings, claims, demands, or grievances, unless otherwise specified by the Board of

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Supervisors, shall be made from the Municipal Transportation Fund.

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****

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(h)

Except as provided in this Article VIIIA, the Agency shall be subject to the

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provisions of this Charter applicable to boards, commissions, and departments of the City and

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County, including but not limited to Sections 2.114, 3.105, 4.101, 4.101.5,

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4.103, 4.104, 4.113, 6.102, 9.118, 16.100, and A8.346. Sections 4.102, 4.126, and 4.132 shall not

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be applicable to the Agency.

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SEC. 8A.103. SERVICE STANDARDS AND ACCOUNTABILITY.
(a)

No later than February 1 of each odd-numbered year, the Agency shall submit to

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the Mayor and the Board of Supervisors a Climate Action Strategy, a Street Safety Action

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Strategy, a Service Equity Action Strategy, and a Transportation Quality Action Strategy, as

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more fully described in subsections 1-4 below. In each Strategy, the Agency shall describe past

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activities and performance in relation to key performance indicators and goals and shall outline

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future actions in relation to those indicators and goals for the two-year period commencing July

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1 of the odd-numbered year. In each Strategy, the Agency shall include any identified budget

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contingencies that may affect implementation of the Strategy. Before submission to the Mayor

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and Board of Supervisors, the Agency shall submit each Strategy to the Citizens’ Advisory

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Council by January 1st. Upon submission to the Board of Supervisors, the Board shall promptly

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hold a public hearing on each Strategy and provide feedback to the Agency.

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1. The Agency shall propose a Climate Action Strategy that describes measures

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taken and progress toward meeting City goals adopted by the Board of Supervisors for reducing

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greenhouse gas emissions from the transportation sector, as well as future plans to meet these

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goals. The Strategy shall address sustainable mode share, transit service, transit fleet, non-

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transit vehicles, Agency maintenance and operations, regional initiatives, and other subjects

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that may be identified by the Agency.
2. The Agency, with active collaboration from the Police Department and the

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Department of Public Health, shall propose a Street Safety Action Strategy that addresses

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measures taken and progress towards meeting City goals to end traffic injuries and fatalities,

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including goals related to safe streets, safe vehicles, and safe people.
3. The Agency shall propose a Transportation Equity Action Strategy to identify

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and correct transportation disparities throughout the City, identify major transportation related

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challenges, and develop methods to address them.
4. The Agency shall propose a Transportation Quality Action Strategy to

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respond to the recommendations from the Municipal Transportation Quality Review conducted

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as required in Section 8A.107, as well as a discussion of any additional initiatives by the

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Agency to improve the overall effectiveness of the City’s transportation system and state of good

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repair that are not already addressed in the Climate Action Strategy, the Street Safety Action

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Strategy, or the Service Equity Action Strategy.
(ab)

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The Municipal Railway shall provide a level of service measured in service hours

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which is not less than that provided under the schedule of service published in the April 1996

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timetable, although not necessarily in that configuration.
(bc)

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By July 1 of each year, the Agency shall adopt milestones toward achievement of

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the goals specified in subsections (cd) and (de). Milestones shall be adopted for each mode of

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transportation of the Municipal Railway, and for the Municipal Railway as a whole, with the

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goal of full achievement of the standards set in subsection (cd).
(cd)

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The standards for the Agency with respect to the services provided by the

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Municipal Railway on rail routes, rapid routes, and frequent local and express routes shall

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include the following minimum standards for on-time performance and service delivery:

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 1. On-time performance: at least 85% percent of vehicles must run on-time,

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where a vehicle is considered on-time if it is no more than one minute early or fourfive minutes

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late as measured against a published headwaysschedule that includes time points; and
2. Service delivery: 98.5% percent of scheduledplanned service hours must be

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delivered, and at least 98.5% percent of scheduled vehicles must begin service at the

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scheduledon time.

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(de)

The Board of Directors shall adopt Agency rules setting additional measurable

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standards for system reliability, system performance, staffing performance, and customer service,

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including:

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1. Passenger, public, and employee safety and security;

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2. Coverage of neighborhoods and equitable distribution of service;

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3. Level of crowding;

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4. Frequency and mitigation of accidents and breakdowns;

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5. Improvements in travel time, taking into account adequate recovery and lay-

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over times for operators;

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6. Vehicle cleanliness, including absence of graffiti;

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7. Quality and responsiveness of customer service;

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8. Employee satisfaction;

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9. Effectiveness of the preventive maintenance program; and

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10. Frequency and accuracy of communications to the public.; and

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11. The Agency's duties related to parking and traffic functions and any other

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functions that may be added to the Agency's responsibilities.
(ef)

The Board of Directors shall adopt Agency rules setting forth the methods by

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which performance shall be measured with respect to each standard established pursuant to

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subsections (cd) or (de) above in accordance with industry best practices to enhance the Agency's

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ability to compare its performance to that of other comparable transit systems. The Agency shall

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regularly publish reports documenting the Agency's performance for each standard. Each

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performance report shall note any changes in the rules governing the methods by which

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performance is measured so as to inform interpretation of performance trends over time. Nothing

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herein shall prohibit the Agency from using additional performance measures.

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(f)

The Agency shall issue a Climate Action Plan to the Board of Supervisors and the

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Commission on the Environment by January 1, 2009, and every two years thereafter. The plan

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shall describe measures taken and progress made toward the goal of reducing greenhouse gas

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emissions from San Francisco's transportation sector to 80% of 1990 levels by 2012 and shall

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further address progress toward the following goals:

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1. Zero greenhouse gas emissions for Municipal Railway transit vehicles;

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2. Lowering energy consumption in Agency facilities and by non-transit

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vehicles;

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3. Maximizing waste reduction in Agency operations;

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4. Increasing transit trips and reducing private vehicle trips within the City;

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5. Increasing the use of bicycling and walking as alternate forms of

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transportation; and
6. Improving regional transit connections to reduce private vehicle use by

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commuters.
No later than January 1, 2010, and no less than every ten years thereafter, the

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Board of Supervisors shall adopt legislation setting goals for reducing greenhouse gas emissions

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from San Francisco's transportation sector, and other climate action measures set forth above,

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for periods after 2012.

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SEC. 8A.104. PERSONNEL AND MERIT SYSTEM.

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****

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(m) In addition to the base pay established in collective bargaining agreements,

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agreements negotiated by the Agency relating to compensation for Agency managers and

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employees in classifications designated by the Agency as "service-critical" may provide

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incentive bonuses based upon the achievement of the service standards in Section 8A.103(cd)

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and other standards and milestones adopted pursuant to Section 8A.103. Such agreements may

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also provide for additional incentives based on other standards established by the Board of

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Directors, including incentives to improve attendance. The Board of Directors may also establish

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a program under which a component of the compensation paid to the Director of Transportation

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and l exempt managers is based upon the achievement of service standards adopted by the Board

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of Directors. Notwithstanding any other provision of Article 8A, all such incentive programs

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shall be at the sole discretion of the Agency Board of Directors, subject to any bargaining

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obligation imposed by state law.

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SEC. 8A.106. BUDGET.

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The Agency shall be subject to the provisions of Article IX of this Charter except:

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(a)

No later than May 1 of each even-numbered year, after professional review,

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public hearing and after receiving the recommendations of the Citizens' Advisory Council, the

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Agency shall submit its proposed budget with annual appropriation detail in a form approved by

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the Controller for each of the next two fiscal years to the Mayor and the Board of Supervisors for

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their review and consideration. The Agency shall propose a budget that is balanced without the

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need for additional funds over the Base Amount, but may include fare increases and decreases,

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and reductions or abandonment of service. The Mayor shall submit the budget to the Board of

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Supervisors, without change. Should the Agency request additional general fund support over the

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Base Amount, it shall submit an augmentation request for those funds in the standard budget

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process and subject to normal budgetary review and amendment under the general provisions of

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Article IX.

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(b)

At the time the budget is adopted, the Agency shall certify that the budget is

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adequate in all respects to make substantial progress towards meeting the strategies in Section

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8A.103(a) and performance standards established pursuant to Section 8A.103(d) for the fiscal

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years covered by the budget.

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(c)

No later than August 1 and subject to Section 8A.108, the Board of Supervisors

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may allow the Agency's budget to take effect without any action on its part or it may reject but

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not modify the Agency's budget by a seven-elevenths' vote. Any fare change, route

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abandonment, or revenue measure proposed in the budget shall be considered accepted unless

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rejected by a seven-elevenths' vote on the entire budget. Should the Board reject the budget, it

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shall make additional interim appropriations to the Agency from the Municipal Transportation

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Fund sufficient to permit the Agency to maintain all operations through the extended interim

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period until a budget is adopted. Any request for appropriation of General Fund revenues in

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excess of the Base Amount shall be approved, modified, or rejected under the general provisions

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of Article IX.

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(d)

No later than May 1 of each odd-numbered year, the Agency shall submit any

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budget amendment that may be required to increase appropriations over those approved in the

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two year budget or as may be required by law, provided that such budget amendment shall

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establish a detailed plan with appropriation detail only for those anticipated revenues and

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expenditures exceeding those approved in the two year budget or as otherwise required by law.

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The Agency may submit to the Board of Supervisors such additional budget amendments or

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modifications during the term of the budget, including but not limited to amendments reflecting

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fare changes, route abandonments and revenue measures, as may be required in the discretion of

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the Agency. Subject to Section 8A.108, Tthe Board of Supervisors may allow any budget

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amendment to take effect without any action on its part or it may reject but not modify the

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budget amendment by a seven-elevenths' vote taken within 30 days after its submission to the

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Board of Supervisors.

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(e)

Notwithstanding any other provisions of this Charter or requirements of the

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Annual Salary Ordinance, the Controller may authorize the Agency to move funds within its

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budget and hire personnel without specific Controller approval so long as the Agency's periodic

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and verifiable projections of spending by the Agency show the Controller that the Agency's

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spending will be within the approved budget. However, should the projections show that the

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Agency spending is likely to exceed its budget, the Controller may impose appropriate controls

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in his or her discretion to keep the Agency within budget.

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SEC. 8A.107. MUNICIPAL TRANSPORTATION QUALITY REVIEW.

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(a)

The ControllerThe Agency shall biennially conductcontract with a nationally

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recognized management or transportation consulting firm with offices in the City and County for

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an independent review of the quality of the Agency’sits operations. The Controller may conduct

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the independent review using City employees and resources, or may contract with a nationally

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recognized management or transportation consulting firm under a contract that has beenshall be

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competitively bid and approved by the Controller and Board of Supervisors. The review shall

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contain:

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1. A detailed analysis of the extent to which the Agency has met the goals,

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objectives, and performance standards it is required to adopt under Section 8A.103(d), and the

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extent to which the Agency is expected to meet those goals, objectives, and performance

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standards in the two fiscal years for which the review is submitted, and independent verification

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of the Agency's reported performance under the performance measures adopted pursuant to

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Section 4 of this measure; and

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2. Such recommendations for improvement in the operation of the Agency as the
Controller or firm conducting the review deems appropriate.

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 (b)

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The results of the review shall be presented promptly to the Citizens' Advisory

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Council, the Agency, the Board of Supervisors, and the Mayor by the reviewing firm; and the

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Citizens' Advisory Council, the Agency, and the Board of Supervisors shall each promptly hold

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at least one public hearing thereon.

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SEC. 8A.108. FARE CHANGES AND ROUTE ABANDONMENTS.

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(a)

Except as otherwise provided in this Section 8A.108, any proposed change in

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fares or route abandonments shall be submitted to the Board of Supervisors as part of the

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Agency's budget or as a budget amendment under Section 8A.106. Route abandonments, and

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may be rejected at that time by a seven-elevenths vote of the Board on the budget or budget

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amendment. Any changes in fares or route abandonments proposed by the Agency specifically to

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implement a program of service changes identified in a system-wide strategic route and service

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evaluation such as the Transit Effectiveness Project may only be rejected by a single seven-

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elevenths' vote of the Board of Supervisors on the budget or budget amendment.
(b)

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Fare increase policy: In order to avoid large fare increases after extended

periods without a fare increase, Municipal Railway fares shall be changed as necessary to:
1. Maintain alignment with increases in capital, operating, and maintenance

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costs by a formula incorporating the Bay Area Consumer Price Index and City labor costs

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according to details established by the Board of Directors;

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2. Maintain the transit system in a state of good repair;

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3. Respond to significant unanticipated changes in City costs or revenues;

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4. Make progress toward meeting the performance standards approved by the

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Agency pursuant to Section 8A.103, as addressed in the most recent Climate Action Strategy,

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Street Safety Action Strategy, Service Equity Action Strategy, and/or Transportation Quality

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Action Strategy; or

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 5. Keep Municipal Railway fares low to encourage maximum patronage,

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particularly among daytime and night-time residents who are transit dependent or have limited

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transportation choices.

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Any Agency budget or budget amendment submitted to the Mayor and Board under

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Section 8A.106 that includes a proposed fare change shall be supported by documentation

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demonstrating why the fare change is necessary according to one or more of these criteria.
(c)

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By no later than February 1, 2021, the Board of Supervisors may by motion by a

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majority of all its members reject any fare changes that became effective between July 1, 2020

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and December 31, 2020, inclusive. If the Board of Supervisors does not act before that time, the

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fare changes shall be deemed approved. The Agency shall make every reasonable attempt to

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return the difference in a fare that resulted from a fare increase that was paid by a member of

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the public prior to February 1, 2021, if the Board of Supervisors rejects the fare change. The

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Board of Supervisors may reject the proposed fare changes by either: (1) appropriating

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additional funds to the Agency to supplement any lost fare revenues for both fiscal years, or (2)

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making written findings, based on the criteria set forth in subsection (b), setting forth the

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reason(s) for rejecting the fare changes. Should the Board of Supervisors reject the fare changes

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by making written findings, the Agency’s budget shall be deemed rejected and the Board of

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Supervisors shall make additional interim appropriations to the Agency from the Municipal

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Transportation Fund sufficient to permit the Agency to maintain all operations through the

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extended interim period until a budget is adopted as set forth in Section 8A.106.
After the passage of the deadline set forth in this subsection (c), the City Attorney shall

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cause this subsection to be removed from the Charter by no later than December 31, 2021, and

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shall causer the subsections of this Section 8A.108 and other sections to be renumbered

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accordingly.

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(d)

After January 1, 2021, for any fare changes submitted by the Agency by May 1 as

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part of its budget or as a budget amendment as provided in Section 8A.106, the Board of

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Supervisors may separately consider and reject by motion and a majority vote any fare changes

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by July 1 for the Agency’s budget or within 30 days for any budget amendment. If the Board of

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Supervisors does not reject the fare changes before that time, the fare changes shall be deemed

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approved. The Board of Supervisors may reject the proposed fare changes by either: (1)

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appropriating additional funds to the Agency to supplement any lost fare revenues for both fiscal

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years, or (2) making written findings, based on the criteria set forth in subsection (b), setting

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forth the reason(s) for rejecting the fare changes. Should the Board of Supervisors reject the

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fare changes by making written findings, the Agency’s budget shall be deemed rejected and the

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Board of Supervisors shall make additional interim appropriations to the Agency from the

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Municipal Transportation Fund sufficient to permit the Agency to maintain all operations

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through the extended interim period until a budget is adopted as set forth in Section 8A.106.

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(b)

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following criteria:
1. The Municipal Railway's need for additional funds for operations and capital

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The Agency shall base any proposed change in Municipal Railway fares on the

improvements and optimal maintenance of assets.

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2. The extent to which the increase is necessary to meet the goals, objectives,

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and performance standards previously established by the Agency pursuant to Section 8A.103.
3. The extent to which the Agency has diligently sought other sources of funding

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for the operations and capital improvements of the Municipal Railway.
4. The need to keep Municipal Railway fares low to encourage maximum

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patronage.
5. The need to increase fares gradually over time to keep pace with inflation and
avoid large fare increases after extended periods without a fare increase.

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 (ce)

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For purposes of this Article VIIIA, a "route abandonment" shall mean the

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permanent termination of service along a particular line or service corridor where no reasonably

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comparable substitute service is offered. If the Agency proposes to abandon a route at any time

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other than as part of the budget process as provided in Section 8A.106, it shall first submit the

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proposal to the Board of Supervisors. The Board of Supervisors may, after a noticed public

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hearing, reject the proposed route abandonment by a seven-elevenths vote of its members taken

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within 30 days after the proposal is submitted by the Agency.

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APPROVED AS TO FORM:
DENNIS J. HERRERA, City Attorney

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By:

/s/ Anne Pearson
ANNE PEARSON
Deputy City Attorney

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Supervisors Peskin. Preston
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