2.5 Farebox Revenue Collection & Control
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This section of the report examines the collection, receipt and deposit of MUNI"s fare revenue by reviewing the operations and procedures of the units involved in these functions, including the Field Collection, Processing and Reconciliation Units of the Revenue Division.
The purpose of this section is to:
- Examine the general procedures of this division, focusing on revenue processing procedures and recommendations to improve upon current operations; Identify revenue equipment that could potentially be a risk to the overall collection process; and,
- Review MUNI"s current transfer fare policy and discuss the Proof of Payment (POP) and the TransLink Project, which both may integrate with MUNI"s current transfer fare policy.
The findings and recommendations in this section are based on observations of revenue collection and processing, and reconciliation operations; a review of many documents related to the revenue function; and discussions with unit supervisors, the revenue manager, the City Treasurer"s Office, and outside transit operators.
Organization of the Revenue Collections Division
The Revenue Collections Division contains the following units: the Field Collections Unit, the Processing Unit, the Reconciliation Unit, and the Public Relations and Administration Unit with a total of 67 staff.
The mission of this division is to provide timely collection and processing of approximately $91 million annually in MUNI fare revenue; to provide timely processing of approximately $13 million annually in parking meter revenue under contract with the Parking and Traffic Commission (PTC); to distribute and collect monthly fast passes and tokens from various vendors; and to provide required sales staff at the War Memorial, Presidio, Powell/Market Koban, and Victorian Park vendor locations.
Of the $91 million in annual fare revenue, 79 percent, or approximately $72 million of fare revenues are collected from cash fares. Twenty-one percent of fare revenues are collected from advance fares.
Development and Enforcement of Procedures
General procedures manuals for the Municipal Railway"s Revenue Division, including the Collection, Reconciliation, and Processing Units, have not been updated in the last 10 years. [1]
Current procedures are incomplete and some are obsolete. Accordingly, 52 percent of the incidents written up in this division"s "Unusual Occurrence" reports relate to situations where staff did not follow procedures, or to incidents when procedures were obsolete. In some cases, when procedures do exist and are either formally or informally communicated to staff, enforcement by management and supervisors could be strengthened.
A total of 106 reports were collected from the above-mentioned units and the supervisors from these units described the types of events that were recorded in these reports. From the information provided by MUNI staff and an examination of these reports, the following categories were developed: (1) employee safety/injury; (2) procedures not followed; (3) obsolete procedures; (4) mechanical failure; and, (5) vandalism/theft. The distribution of causes for unusual occurrences by these categories is provided in the chart below:
Exhibit 2.5.1
Distribution of Causes for Unusual Occurrences
San Francisco Municipal Railway Revenue Division - FY 1995-96
In this analysis, procedures are considered to be an established course of action that are to be followed by those individuals who are responsible for carrying out particular duties. Examples of occurrences written in these reports include:
- Procedures Not Followed
On March 9, 1996, an employee did not record the appropriate revenue processing information regarding coins collected in a specific subway canister. Subsequently, without this information, total collected revenue could not be accurately reconciled.
- Obsolete Procedures
On June 3, 1995, the Revenue Division was overstaffed at the Victorian Park vendor location because, at the time, there was not a sufficient system in place to communicate and account for changes in the staff schedule.
The management of the Revenue Division should revise procedures manuals, effectively communicate changes in procedures, and enforce established procedures to ensure greater efficiency and effectiveness by the employees of the Revenue Division.
Cable Car Pass Collections
MUNI also has not established adequate procedures for staff to safely retrieve and transport revenue from Cable Car pass collection sites to headquarters. Specifically, during the P.M. pickup of revenue at the Powell/Market location, Division staff and a contract security guard are required to carry revenue from the ticket booth to the transport vehicle, which is often parked one to two blocks away from the booth. MUNI does not have a permanent parking spot designated in that location, often forcing staff to park blocks away. (MUNI has even been cited and towed by the City for parking the revenue van on Market Street when retrieving revenue). This situation puts personnel and revenue at risk.
Staff Productivity
Three fundamental functions of MUNI"s Revenue Division include (1) the collection of fare revenue every day except Saturday by the Field Collections Unit, 2) daily sorting and processing of revenue by the Processing Unit, and (3) reconciliation of revenue deposits from vendors, counter sales, and fare revenue by the Reconciliation Unit.
Overall, these units sufficiently perform their duties and effectively coordinate their functions with one another, given their work schedules, the lack of standards, some of the working conditions, and problems with revenue collection equipment. These issues will be further addressed in this subsection.
Work Schedules
On average, MUNI is currently three days behind, and as many as six days behind in processing and depositing revenue as a result of obsolete processing standards, inadequate working conditions and high staff absenteeism. As a result, MUNI is foregoing approximately $36,860 in unearned interest annually.
This unit processes cash revenue from 5:00 A.M. to 1:00 P.M. daily. However, a day"s worth of revenue is typically vaulted at MUNI as a result of its scheduled revenue pick-up time with Loomis, who is contracted with MUNI to deliver the revenue to Brinks, Incorporated, which is located in the City of Oakland. According to MUNI"s Processing Supervisor, the revenue that has been processed on a given day can not be picked up on that day because Loomis must deliver the revenue to Brinks by 3:00 P.M. This schedule does not allow sufficient time if the unit runs over its scheduled 1:00 P.M. finishing time and/or if Loomis is to encounter traffic during its trip to the East Bay. MUNI should investigate the efficiency of changing the collection and processing schedules so that revenue collected the night before can be deposited the following day. For example, revenue is delivered to the Revenue Division vaults during the late evening and early morning hours, well before the scheduled Processing Unit start time of 5:00 A.M. If the Unit were to begin work four hours earlier than the current start time, the revenue collected from the previous day could be delivered to Oakland well before the 3:00 P.M. deadline established by Brinks.
Processing Standards and Availability of Staff
As part of revenue processing procedures, staff are required to unfold and sort a daily average of $95,000 in currency ($67,000 in one-dollar bills) before the currency can be counted electronically. According to a Processing Supervisor, it takes one fare collections receiver approximately one hour to unfold and sort $2,000 in currency. Therefore, nine fare collection receivers, which are scheduled to work a majority of the time (Tuesday through Sunday), must work approximately 5.3 hours to unfold and sort the daily average of revenue. The Processing Unit has a total staff of 11 fare collection receivers to process MUNI revenue.
However, MUNI is contracted with PTC to process revenue from parking meters, which requires two staff to dedicate four hours each to process this revenue (in the form of coins) for PTC on a daily basis-the equivalent of one full-time worker. Accordingly, when this unit is short-staffed, the processing of MUNI"s revenue becomes secondary because MUNI management appropriately believes the Unit must meet the contractual obligation to PTC before accomplishing its own workload. As reported by MUNI management, the Department has purchased two new coin sorters to improve the productivity of the Unit.
Although MUNI has established estimates for individual productivity, the Revenue Division has not consistently implemented this standard as a mechanism to evaluate an individual"s productivity. Neither is this standard used as a performance measure during an individual"s yearly evaluation. The Unit"s supervisor explains that the lack of enforcement occurs because staff are able to bid for the assignment to the Processing Unit, and tend to rotate duties every six months. Therefore, the unit is constantly training staff to perform these duties. Accordingly, it would not be appropriate to apply standards to trainees. Instead, productivity estimates are used primarily as guidelines and targets for employees to achieve.
According to a representative of the American Public Transportation Association"s (APTA) Fare Collection Committee, and an employee of Houston"s Metropolitan Transit Authority of Harris County Texas, many other transit operators have implemented and enforce a performance standard for processing currency. In addition, this representative states that productivity increases when individuals are assigned a specific batch of currency to sort. For example, this representative states that both the City of Atlanta"s Metropolitan Atlanta Transit Authority (MARTA) and the Dallas Area Rapid Transit (DART), which both utilize electronic fareboxes similar to MUNI"s, allocate one mobile safe per staff person to process.
Currently, MUNI processes currency from the electronic fareboxes one mobile vault at a time, and the currency from that vault is sorted by the entire team of fare collection receivers before the next vault is emptied. Accordingly, MUNI cannot easily establish expectations to measure productivity of its fare collection receiver staff.
The APTA representative suggests that allocating revenue sorting responsibilities as done by MARTA and DART, may require working space to be reconfigured in a manner that would allow for dividers to be constructed between staff, or cubicles to be installed in the work area.
For instance, DART"s currency processors each have their own work stations (a 6x6 square foot cubicle that has an overhead security camera). DART"s implemented processing standard is a minimum amount required per processor, and a representative from the agency states that most processors can sort 2,000 bills in an hour. The currency processing area used by DART is separated from the coin processing area in order to reduce excessive noise which emanates from the coin processing machines. The coin processing area is approximately 20x24 sq. ft.
A representative from the Chicago Transit Authority"s (CTA) Treasury Vault Service states that the CTA has implemented a quota system for its currency processor that is based on a weekly average of 11,500 bills per day. The CTA has found that the weekly rate is more effective than a daily rate because processors work at different speeds throughout a day. This system enables processors to pace themselves throughout the week, and eliminates the pressures of accomplishing daily quotas.
With a full staff of nine fare collection receivers, MUNI"s Processing Unit should be able to process both MUNI and PTC revenue. However, this unit has a high absenteeism rate. During January of 1996, this unit only had full staff 42 percent of the time. During a three month period from January 1996 through March 1996, approximately half of the staff in this unit worked less than 90 percent of their scheduled work hours.
A contributing factor toward high absenteeism could be the working conditions faced by the employees of this Unit, and inadequate space to perform their duties. The processing area is approximately 12x7 linear feet (84 square feet), and the fare collection receivers are required to sit side by side at one large table with very little room to perform their duties. Other transit operators and companies that process currency have established similar processing procedures as MUNI. However, the amount of space dedicated to sorting currency is usually greater for each of the employees working in the area, as illustrated in the table below.
Table 2.5.1
Comparison of Currency Processing Standards & Work Space
Surveyed U.S. Transit Properties Compared with MUNI - 1996
| Transit Operator | Processing Standard | Number of Processors | Square Feet of Work Space Dedicated Per Worker |
| Houston Dalls Chicago San Francisco | 1,700 bills/hour 1,600 bills.hour 1,533 bills/hour None | 5.5 3.5 24.0 9.0 | 40.9 36.0 33.0 10.0 |
For instance, Houston"s transit operator dedicates a 15x15 foot area with 5.5 staff processing currency, for an average employee allocation of 40.9 square feet. Brinks dedicates a 12x18 foot area with 8 people processing currency, for an average employee allocation of 27 square feet. As can be seen in the table above, MUNI currently allocates only ten square feet per employee. Although the APTA representative stated that high absenteeism is common among staff who process currency and coins, he also believes that it is imperative to provide adequate space and conditions for staff to perform their functions if absenteeism is to be controlled.
In addition, according to MUNI"s Health and Safety Inspector, the work area used for revenue processing violates fire, building, and CAL-OSHA codes. Two problems that need immediate resolution are updating the electrical and ventilation systems, and providing an accessible fire exit in case of power failure.
In order to correct these deficiencies, the unit and its functions would need to be relocated for six to eight months. MUNI is currently investigating temporary space and the necessary funds to temporarily relocate this unit. However, given the grossly inadequate area and design of the space, MUNI should instead consider a permanent relocation or renovation and expansion of this Unit"s current work space that would be designed to fit the Department and PTC"s needs.
Space usage and the feasibility of developing individual work stations should be fully evaluated by the Department, in conjunction with establishing performance standards. Within the constraints of Civil Service rules, MUNI should also adopt personnel incentives to improve productivity. For instance, MUNI could provide some form of recognition for employees who consistently meet the established performance standards during a three-month period.
Another option for MUNI would be to contract-out for the processing of revenue. For instance, the revenue manager at BART states that BART has previously looked at providing this service to other transit operators, and would be interested in discussing this potential opportunity with MUNI. In addition, MUNI should also investigate contracting with Brinks, Inc., who submitted an unsolicited proposal to perform these services for MUNI in 1994.
Revenue Collection Equipment
By observing the collection of revenue from subway faregates at Embarcadero, Montgomery, Powell, Civic Center, Van Ness, Church, Castro, Forest Hill, and West Portal stations, as well as the collection of revenue from BART-MUNI ticket machines at BART Stations in San Francisco, we determined that the faulty, outdated equipment used to collect subway revenue creates security risks to personnel and revenue, requiring staff to use makeshift procedures to collect revenue. During the observation of the revenue collection, it was noted that the field collection staff competently carried out their responsibilities and duties given the faulty and outdated equipment they are required to work with. The following observations illustrate the conditions under which staff are required to perform their duties:
- At the Embarcadero Station, staff were observed lining the bottom of the flasher unit (mobile repository that holds revenue containers) with a cloth bag in order for the extractable grant vault to fit properly into the flasher unit.
- At the Montgomery Station, a piece of cardboard was wedged between a faregate and the metal bar-lock, ensuring that the faregate door remains completely closed and that the revenue canister is flush against the faregate so that the internal microprocessor will read the revenue. This observation indicates that faulty equipment is used to collect revenue and does not indicate, in this particular situation, a risk to the security of the revenue or to the staff.
- At the Civic Center Station, staff were observed using a crowbar to pry a grant vault out of a flasher unit. Old grant vaults are welded together to collect and temporarily store revenue.
- There are not enough usable grant vaults to collect all the revenue from each faregate. Staff were observed using a cloth revenue bag to collect the revenue out of faregates that have the least amount of revenue (Forest Hill Station). Staff handle revenue directly in this situation. Thus, there is minimal control over the receipt and security of cash in the stations when this occurs.
A survey of the subway revenue collection equipment revealed that there are sufficient numbers of grant vaults to temporarily transport collected revenue. However, this equipment undergoes constant maintenance and frequent modification by the Electronics Shop in order for MUNI to utilize and properly secure revenue.
In April 1996, the MUNI Field Collection Unit"s inventory of subway equipment was short seven grant vaults, which are used to temporarily store and transport revenue. According to staff from MUNI"s Electronics Shop, the Electronics Shop is holding eleven grant vaults that were recently modified to become more technically efficient. However, the modified grant vaults are awaiting new locks, which are on order. Until these locks are installed, the grant vaults cannot be used.
In addition, it is costly to order new equipment from the manufacturer since the equipment is not longer regularly produced. For example, MUNI must pay $829 to replace a revenue canister for a system that requires 54 operating canisters. Furthermore, if new equipment is ordered, it takes the manufacturer six to 12 months to fill the order. MUNI has replaced approximately half of the number of canisters (approximately 28) over the last three years. According to MUNI management, the Department installed locks on the subway faregates in 1994, which has significantly reduced the number of canisters that are replaced as a result of theft or vandalism.
Electronic Fareboxes
The electronic farebox system cost MUNI approximately $5.2 million to purchase and install in 1991, and this system is relied upon to collect 71 percent of MUNI"s total daily fare revenue of approximately $245,000. Approximately 1,131 electronic fareboxes are used to collect revenue on diesel buses, trolley buses and articulated buses (based on an average A.M. pull-out of 862 buses). Eleven technicians provide maintenance on these fareboxes, responding to approximately 480 road calls a month for electronic farebox break-downs during service.
Currently, MUNI conducts preventive maintenance on fareboxes every 90 days rather than every 30 days, as recommended by transportation consultants involved in the purchase of the system. Because MUNI"s electronic farebox equipment does not receive recommended preventive maintenance, it is probable that road calls are higher than necessary.
For example, according to the Vice Chair of APTA"s Fare Collection Committee, and an employee of the Houston"s Metropolitan Transit Authority of Harris County, Texas, preventive maintenance on fareboxes is important. Houston utilizes 1,300 electronic fareboxes (based on a pull-out of 850 buses) which are serviced by 16 technicians, who also provide regular preventive maintenance on the equipment. Houston reportedly receives 350 road calls a month.
When compared with Houston, MUNI responds to 21 percent more road calls for farebox break-downs than does Houston. MUNI"s staff which is dedicated to farebox maintenance is also 31.3 percent less than Houston"s, which suggests that the added preventive maintenance provided by Houston personnel may contribute to lower rates of equipment breakdown. Because MUNI also experiences greater ridership than the Houston property, and thus receives more wear on its fareboxes, it is reasonable to assume that an expanded preventive maintenance program at MUNI would be a critical element in reducing service interruptions because of failed farebox equipment.
A consultants report on MUNI"s farebox system maintenance, [2] states that preventive maintenance needs to be scheduled and performed so that every farebox, cashbox, receiver and mobile vault will receive preventive maintenance once a month. MUNI"s electronic shop, which is also responsible for maintaining the revenue collection equipment for the subway system, currently staffs a total of 11 people whereas this report recommends that 21 people are required to maintain this system. The APTA representative confirms that the recommended preventive maintenance schedule of every 30 days is an adequate standard.
The risks associated with untimely electronic farebox preventive maintenance are the following:
- Lost revenue from malfunctioning fareboxes;
- Excessive depreciation of farebox equipment;
- Reduction in the number of vehicles in service when fareboxes break down;
- Additional staff costs due to increases in road calls;
- Additional travel time required for responding to increases in road calls; and,
- Negative public opinion developed from continuously malfunctioning fareboxes
These risks are significant because they affect both service quality and reliability, and farebox recovery. The Director of Public Transportation should evaluate staffing needs based on previous consultant recommendations and the experience of other jurisdictions, and submit a request for funding to the Public Transportation Commission, Mayor, and Board of Supervisors. An increase in staff by six positions, which is approximately half of the new positions recommended by the consultant, would increase MUNI"s costs by $398,681 per year for a total staff of 17.
Fare Policies
The City"s fare policies will have significant impact on decisions related to procedures, equipment purchases, and staffing of MUNI"s fare collection system. The City is currently testing a Proof of Payment system and investigating the integration of TransLink, a regional fare system which will allow patrons to purchase inter jurisdictional passes.
Transfer Fare Policy
The Municipal Railway has always used a transfer fare system. [3] MUNI provides a single flat rate fare for all passengers, with discounts for seniors and youth. MUNI also offers discounts with the purchase of monthly and weekly Fast Passes and tokens. Zonal pricing, length of travel time, distance traveled, time of day of travel, and day of travel are not used as a criteria to formulate MUNI"s fare structure. However, MUNI has various transfer agreements with other transit operators designed to facilitate regional travel by providing a coordinated fare structure.
In FY 1993-94, passenger fare revenue was MUNI"s single largest revenue source, accounting for 38 percent of total revenues.
MUNI"s transit fares are structured to accomplish the following objectives:
- To generate revenues which are sufficient to provide convenient, effective, safe, and efficient transportation services to meet the needs of all San Francisco residents and visitors.
- To provide equitable and efficient transit service as an effective alternative to the automobile, and thereby reduce traffic congestion, energy consumption, air pollution, and parking problems.
- To provide reasonable discounts to youths, seniors, and disabled persons.
The current fare policy is a sound one. However, with changes in technology and in an effort to control operating costs, MUNI has been examining fare policies and systems which are used by other operators, or are part of a regional effort to provide more of a seamless transit system throughout the Bay Area. Integration of these fare policies could impact the manner and extent to which MUNI will collect and process fares.
Proof of Payment (POP)
MUNI has partially implemented and is currently testing the functionality of the Proof of Payment system on the LRVs. With this system, passengers with proof of payment (monthly pass or transfer/fare receipt) in their possession could enter any Metro car at any door. Passengers needing to pay a cash fare would enter at the front door of the lead car. Operators would issue each paying passenger a fare receipt, valid for a specified length of time. Fare receipts would also be issued at subway turnstiles. Fare inspectors would be deployed randomly on all Metro cars to enforce fare policies. Passengers with no proof of payment would be subject to a fine in the range of $20 to $25 or more.
According to MUNI"s Short-Range Transit Plan (SRTP, October 1995) implementation of a POP system could enable service capacity per employee to become more efficient by eliminating the need for an operator in each car; shorten dwell times due to all-door boarding; improve passenger comfort due to better load distribution with cars; enhance system security due to the presence of a roving fare inspector; and increase passenger convenience due to reduced overall travel times.
If implemented throughout the LRV system, the POP program could impact the operations of the Revenue Division by changing the mix of station and farebox collection systems, and the amount of cash revenue to be counted.
TransLink
TransLink is a regional project that would improve passengers" ability to transfer between various transit systems in the Bay Area. This system would allow for: (1) inter-operator transfers using a TransLink ticket; (2) provide a widely available substitute for cash and tokens; (3) reduce the number of fare instruments used on MUNI; and (4) reduce cash handling.
According to the Department"s Capital Improvement Program (October 1995), MUNI staff has developed a series of options for implementing TransLink on the MUNI system. These options will be presented to the Public Transportation Commission (PTC) for policy direction. All options would provide for inter-operator transfers using TransLink ticket readers at fare gates or in station areas, and on board buses and light-rail vehicles. MUNI is currently examining the following matters in relation to TransLink:
- MUNI"s role with debit cards;
- Potential equipment maintenance problems;
- Funding sources for implementing and operating TransLink; and,
- Interfacing TransLink with current MUNI transit fare systems.
Cost estimates for various options have been made, but they are preliminary and assume the use of existing TransLink magnetic strip technology. The estimated total project capital cost is approximately $29.4 million, according to the Capital Improvement Program, with proposed federal funding of $24.3 million, proposed state funding of $2.2 million, and a proposed local match of $2.8 million.
If TransLink receives approval from the Public Transportation Commission (PTC), the system would supplement the current revenue collection systems, as well as interface with the Proof of Payment system that is currently being tested by MUNI. In order to implement TransLink, the subway faregates would need to be retrofitted to interface with both Subway fares and TransLink. According to MUNI"s Revenue Manager, MTC may cover the cost of retrofitting the subway faregates.
The current subway revenue collection system has a life span of 20 years, and is currently in its 16th year. Presently, the Revenue Collection staff uses makeshift procedures to collect revenue out of the faregates because the machinery is costly to replace and requires labor-intensive repair modifications. MUNI should coordinate its current examination of TransLink with future subway equipment procurement.
Conclusions
Fifty-two percent of the incidents written-up in the Revenue Division"s "Unusual Occurrence" reports relate to situations where staff did not follow procedures or procedures were obsolete. By making procedural, operational, and physical work environment improvements, MUNI could increase productivity and accountability of staff in this division.
For example, MUNI is foregoing approximately $36,860 annually in unearned interest as a result of being, on average, three days behind processing and depositing fare revenue. This is in violation of City Charter Section 6.311 that mandates all moneys and checks received by any officer or employee of the City and County shall be paid or delivered into the treasury not later than the next business day after its receipt. Furthermore, the late deposit of revenue, which is in the form of currency, jeopardizes the safety of City employees and the security of the revenue.
The 15-year-old equipment for collecting revenue from subway faregates is technically inefficient, outdated, and costly to repair. Electronic fareboxes manufactured by Cubic Precision, a system that cost MUNI approximately $5.2 million to purchase and install in 1991, do not receive the required preventive maintenance, causing MUNI to forego revenue as well as incur excessive depreciation costs. Because of this faulty equipment, revenue and staff are placed at risk during the collection process.
Recommendations
The Director of Public Transportation should direct the Director of Enterprise Accounting to:
2.5.1 Update and distribute procedure manuals to indicate current operating procedures by October 1996, which would result in increased efficiency, effectiveness, and security over farebox revenues;
2.5.2 Develop alternative collection and processing schedules so that revenue can be deposited within one day, as required by the City"s Administrative Code.
2.5.3 Develop and implement a performance standard by which to evaluate the productivity of fare collection receivers by October 1996;
2.5.4 Develop program incentives which will increase productivity and morale, and which comply with Civil Service rules, for staff to meet performance standards;
2.5.5 Complete structural improvements of Processing Unit"s area by December 1996, which will ensure the safety of staff;
2.5.6 Coordinate with the Maintenance Division to establish an appropriate preventive maintenance schedule for electronic fareboxes;
2.5.7 Work with the Department of Parking & Traffic to establish a designated parking area for MUNI"s revenue collection unit near the Market/Powell cable car turnaround by October 1996;
2.5.8 Develop a staffing plan which will ensure the timely and secure processing of farebox revenue;
2.5.9 Investigate contracting out for revenue processing services with Brinks, Inc., and BART, and report back to the Transportation Commission on its feasibility and comparison to in-house staffing costs by January 1997;
2.5.10 If the program is to be retained in-house, evaluate the space needs of the processing unit, and investigate the feasibility of developing individual work stations; and,
2.5.11 Coordinate the current examination of the TransLink Project and the issues of concern to MUNI in relation to this project, with the potential procurement of subway fare collection equipment.
Costs and Benefits
The costs for implementing potential staffing, contracting, and structural improvement alternatives cannot be estimated at this time. Other recommendations could be implemented by the Department at no cost.
Implementation of these recommendations would result in increased efficiency and productivity within MUNI"s Revenue Collection Unit. In addition, the security of the staff and revenue would no longer be in jeopardy when procedures are established or updated. MUNI will earn an estimated $36,860 from annual interest income when it begins to comply with the City"s Charter provisions and deposits the revenue by the day after it is collected.
Footnotes
1. The Municipal Railway"s revenue collection system has not been audited for over five years, with the exception of the Cable Car revenue collection system in January 1994 (updated in October 1994) by the Controller. Other than this formal audit, some limited testing has been performed as part of the single audit of federal grants.
2. J.W. Leas & Associates, "Farebox Collection System Maintenance," August, 1991.
3. In July 1993, the Board of Supervisors approved a revised fare schedule for MUNI that left the base adult fare at $1.00, but increased all other cash and pass prices. The Board also eliminated transfers and replaced them with a new day pass and week pass. After a brief trial period, transfers were reinstated in March of 1994.