from the supervisor alioto that she doesn't want to see talioto she doesn't want to see the cal hallow facility go dark. the second issue is we have been negotiating if good faith after a long effort with the -- with the l.i.a. and i think that -- that they are at a drop dead date where they go out of business if they don't have this facility. they have staff and they have services. i think there are some options for city college. i don't think it is going to be at laurel heights but i think julius kahne or the play ground that you just mentioned, phil, offers some great potential. we don't win in this situation. believe me. because -- we're going to make somebody happy and somebody upset here. and i guess that is just the nature of the base. -- business. the fact is we have to make the decision. i think based on those economic factors and the -- and the hard reality. i'm going to say it again and keep saying it, every time we

lose money in this process, we let guardeners go and we let rec directors go. we're under the gun and staff is working hard on this to find alternatives. i -- we may not be perfect in the process of outreach and notification and everything else but the -- the harsh reality is that when we save money, we serve the whole city. we don't serve just the neighborhood by putting guardeners and recreation center directors back to work. i think that we're under that gun. so be that as it may or people that want to call it privatization, which i find to be an offensive word. i would rather say it is revenue generating for site appropriate uses and recreation. it is a reality. we could all use words we like or don't like. these are the decisions. i tip my hand on the way it should go. i like to direct staff to work fast, diligently with city college to find a solution to

try and might not -- try to minimize the impact on their program to this particular part of town where this service has been going for 40 years. >> commissioners? >> i would move approval of staff's recommendation with the change in the lease terms. >> okay. so -- now, we learn robert's rules of order. >> sorry. >> is there a second to that? >> yes. >> you need to know the lease terms. >> commissioner, what would the terms? >> two-year lease with the 12-month notification to -- what? >> it is what i said earlier. two years with the 12-month notification option. >> i don't understand the 12-month notification option. is that notification tottenant

before they have to leave. it is effectly three years? >> yes. so the community could raise the money and they would have an entire year to do that and come to the department. we talked about -- >> commissioners, it is a policy decision for all you've about whether or not you would want -- obviously if after -- if there's another option in 1 months that -- that you think is preferable to the current tenant, you would provide 12-month notice to language and action. and then the lease would skire after two years. as we do with all of our leases, you may want to consider ans on it extend. >> another way of putting that is there's an initial lease for two years with a 12-month notice of termination. you would do year to year there after because you would have a 12-month notice of termination. >> the purpose was that the neighborhood was concerned that five years was simply too long. this may also be to the school's benefit as well.

it may not be a fit for them as well. >> we ask the city attorney to weigh in. >> and we have seen many vareyages on this theme from -- we could just help with phrasing because i can already see that, you know when time comes, there'll be confusion. so, you could -- you could have a term, let's say for example two years. and there would be an option to renew for two years. but -- that's exercised upon -- upon a one-year notice. so that it is very clear that -- if it is going to roll into the omings option there's a notice provision that it takes a year to do that. i use an example of the zoo lease that is for set term. if either side wants to end the lease, it requires a six-month notice to the other side. so that there's a decision that is made, six months prior to when the lease would end. >> thank you. >> so the amendment would be a

-- a two-year lease, with a two-year option with a 1-month notification to exercise that option. >> exactly. after two years, we decide, they decide, it is decided over the -- ev this one year, or we have one year. >> i think -- >> that's a three-year term. >> that's still not right. >> if it is a two-year lease, and they an option for two years, and you have to give them 12 months notification if you're going to exercise that option, it is really at end of the first year you have to make that decision. >> yes. at the end of the first year. >> the reason for 12 months we felt was reasonable for a school. >> for those of us that hope the economy turns around and the budget gets better in that period of time, i got hand in florida. i think it is a tough proposition, but i think it is the responsible thing to do to put the two years. >> i was thinking they should

have at least two years. -- i don't think it is reasonable. initial two years. before -- to think they will know after a year. to think anybody will know in a year is not. >> so herb oher motion would be a two-year lease. >> right. with -- with a two-year option and notification -- then you still have a 12-month notification on the two-year option. you're not terminating after two years. you're not terminating after one year you may terminate after two years. you got to give tchem 12 months notice. the maximum there would be three years. >> four years. >> no. >> minimum. >> two and two. two and two, but 12-month notice -- >> 12-month notice after the first year. >> yes. >> after the first year. >> you give 12-month notice after two years, then three

years. either second or first. >> you got to give a 12-month notice. that's all you could say. is there a -- is that your motion? >> two years. >> two years with a two-year option but you need a 12-month notice to exercise the option. >> you could exercise after the second year. >> well, in theory -- in theory, the second year wouldn't be -- you would be exercising it in the second year, but you get notification 12 months into the he's in the first year. >> makes any sense. >> you could have an initial -- initial two-year lease. >> kii make a suggestion? >> please. >> ask the attorney, is there a simpler way to do this? we want to give the school two

years and one year if we ask them to move to -- to give them a year to find a place. >> then i can draft it that way. the term of the he's is two years, that with -- with option to exercise and -- an extension, the decision will be made at the end of the two-year period. is that -- >> commissioners -- >> the problem with that, if i i may. the problem with that they need to know 12 months out, you would be giving them an automatic third year. >> in which case it would be a three-year lease with a 12-month notification period. >> that's correct. that's the answer to that. a three-year lease with a 12-month note foiks. >> can i give this a shot? >> if it improves on this conversation, you may say

something. doesn't, you may not. >> i think it might. what you want, and i think you picked up on it. i think you picked up on it, commissioner buell is an extension. two-year lease, 12-month notification prior to termination, if we want them out after 12 years, we have to let them know 12 months in advance, two-year lease, with a 12-month notice and it extends year by year thereafter. if we decide not to ask them to leave, if you decide to ask them to leave you give them 12-month notification. you could have two one-year extensions or three or whatever. >> does the motion maker understand it? >> actually -- what i was trying to get at. crea, i think that works. >> we call did a two plus, one, plus one. that way. >> i like that. >> two plus one, plus one. >> yes. >> two plus one, plus one.

with a 12-month notification. >> maybe on a one to one. they would be on a one to one forever. that's unfair. >> two to five-year lease depending on the situation. >> there's a cap at five? >> correct. >> we have that motion. that's an amendment. i think the city attorney will clarify that for us. right. she's going to take the advice of staff on a two-year, one year, one year maximum five years lease. >> what i understand this to be the lease term will be two years. with the option to extend up to five years, and that the exercise of the option to extend requires -- it requires a year notice. >> no. to terminate requires a one-year notice. well, it is equal.

it is either side. i appreciate if the audience didn't try to negotiate this lease at the same time. it is not helpful. the way it usually works is tha1 the way it usually works is that the -- the tenant notifies the department that they wish to extend. then it is up to the department to make a decision. >> right. >> and on the same grounds they would notify if they wanted to terminate. >> exactly. they would have to give 12-month notice. >> we don't need the notification. we could exercise our option not to renew. and then after another year. >> if they needed 12-month notice. >> and two-year. >> and that's the point. >> yeah. right. >> so the point is, that -- that it is a -- a lease for two years, with -- >> vearm, i don't think the community can -- the public can hear you. >> one of them is working. now, try this again. so, that -- this is a two-year -- that this -- it is a two-year

lease, with the option to extend for a maximum of five years, on thereafter on a yearly basis and that the exercise of the option has to be -- because the at any timeant -- at any timeant would say they want to stay and the notice has to happen a year prior. >> right, 12 months prior. >> basically after the first year, a decision will need to be made. >> right. or that's when you could start exercising that option to make the decision. >> to make the decision. >> just a point -- yes. just -- so i'm sure that i understand this if the department wanted to terminate this lease after two years, under the structure, would the department be able to do that? >> that would happen at the end of the second year. >> after the first year. >> right. >> actually, i think you -- to clarify what we would do if they

approached us and said we would like to exercise the extension, this would happen after the first year of that term -- if we decided that we did not want to do that, we would say no and at that point they could stay one more year. >> yes. >> then they're out. >> right. >> that's the way i understand it. >> okay. that's the motion. that's an amendment. >> this is voting on the amendment? first. i think that by protocol i can say is there any objection? to the amendment. hearing none. the -- the amendment is made. now, on the full resolution then as amended, item 10 is before you. is there a motion to approve item 10 as amended? >> it has been moved. seconded. all of those in favor? >> aye. >> all those opposed. hearing none it is unanimous. thank you so much and thank you for bearing with us.

[applause] >> eight, i'm going to recommend a 10-minute recess for the commission and we >> if everyone could please take a seat. president buell: we are going to number eight. >> we are now on item #8. >> let me just get this up. in an ideal world, this presentation would have come before item 10. we took it out of order because some many people were waiting.

this is a reminder for you and for the public and for the community about, frankly, some of the real issues we're facing as a product of our budget. we did remarkably well. we are going to be providing recreational programming, we didn't have to lay off gardners. we got through this budget. but there are some changes that have happened as a result. we want to come back and provide an overview. the resources we were given to not allow us to staff the clubhouses with some exceptions. we are, as you have just participated in, looking for community partners. but that as a context, i will turn it over to nicole who is going to take you through the clubhouse overview, and it should be relatively brief period -- brief.

>> i will set the context for the conversation that will follow about clubhouses. this is just a reminder for a lot of you. the city faced a general fund shortfall at the beginning of the budget process. in order to help close that budget gap, the mayor's office ultimately required the department to reduce our general fund budget by $11.4 million. after many meetings with the public and with staff, we were successful in proposing $8 million in revenue generation to solve 2/3 of this problem, something we're very proud of having done. $3.4 million of our solution had to come through expenditure reduction. $2.5 million of that reductions resulted from the restructure of

recreation and our new recreation service delivery model. that new model focuses almost exclusively on the department's 25 full-service recreation centers and nine aquatics centers. our fiscal year budget simply does not include the funding to staff our clubhouses. there are some very limited exceptions to this. the budget does fund staffing for six clubhouses to maintain existing after-school enrichment programs. the criteria that we used for deciding to maintain these programs included the fact that they are well attended. they are geographically diverse programs. they were not close to other recreation centers providing similar programs, and the club

houses are close to school. a key factor in after school programming. clubhouses that are also exceptions to the rule, those that are near recreation centers that are closed for renovation, like the club houses near the chinese rec center will remain staffed. as of august 16 when we implement our new recreation model, the department will only be providing programming, we will only staff 11 of the 48 club houses. that begs the question, what are we going to do with the remaining clubhouses. nicole was going to walk you through our plan for those. >> thank you, commissioners.

as she stated, our model is based on the fact that many of our clubhouses will be leased to community partners to keep them open and vibrant. this is not a new idea. the department has been working with partners for over 30 years. we have a number of community partners that are in our spaces, but these have included self help for the elderly for over 15 years, the nurseries school that has been there for over 30 years, rainbow montessori preschool that has been there for 25 years, the rocky mountain and a preschool, city college for more than 15 years. others have been there for four years. it is something we have done quite a bit of over the years. this model we are instituting is

not new. all of our partners that we're proposing falls into one of the competency areas. the general manager describes those in a little bit more detail. community services does include early childhood development. the partners we are proposing for the 2010 and 2011 year includes several mergers schools, and rainbow montessori school. and other partners that we think are a good match. the boys and girls club, self- help for the elderly, the inner city youth that you will hear more about, and the tentative partners.

the next step to prevent the other clubhouse closures, in total, 11 will have recreation and park department programming. five will be closed for renovation, and 18 have confirmed partner programming. options for programming include community driven and funded programs such as that that don green mentioned. we have a gardener program, we have a recreation center program, and if a community is interested in coming together, we would be thrilled. the community would be asked to provide services for the four clubhouses.

and more comments that will be done through the pier process. i would like to note a couple of things. we have an number of ongoing public commitments with respect to the clubhouses. playgrounds will remain open to the public. the park will remain open to the public. the exterior restrooms will remain open to the public. as far as indoor space goes, we intend to negotiate with all appropriate partners to allow community meetings and programs to take place during non at occupied hours. our clubhouses will still be available for rental and they will be eligible for a facility scholarship program that i am about to talk to you about. >> is it appropriate for npc to

assist in the out reach of these facilities? >> very much so. a very appropriate. >> we are never going to get it right because somebody will not hear about it, but we have to use all of our allies. any other questions? thank you very much. >> we have public comment. is hiroshi here? anyone else that would like to comment on this item? seeing none, public comment is closed. this was discussion only. we are on item number nine. >> i wanted to talk to you about a proposal to be eligible for a

scholarship program. right now, san francisco residents are eligible for programatic scholarships. eligibility has allowed for clients to receive 60%-100% discounts. it is not allowed for folks to provide scholarship eligibility towards facility rental. in 2008 and 2009, we had 729 families that were eligible for scholarships. of those, 501 took advantage of the eligibility. in 2009 and 10, we had 1045 families eligible for scholarships, 820 of those took advantage. those are terrific numbers, because they show a 64% increase over the last year in the use of

our scholarships. we have got a variety of facilities that take many forms. there are recreation centers with clubhouses, community meetings around -- community meeting rooms, and the fees range from $25 an hour to $75 an hour. there are certain criteria when staff need to be on the premises for events. what we would like to do is amend our scholarship policy to include those individuals that are eligible for scholarships to also be eligible for facility scholarships, and there are couple of things that are to be determined. we will come back to you and ask you to amend the scholarship. just a heads up. the total amount is still to be determined as well as the amount

and the frequency at individual is eligible. when we come back to you in a few weeks to amend the policy, we will have those numbers. i wanted to give you a heads up. president buell: thank you very much. commissioner harrison: you were talking about the cost of the clubhouse. i remember one time my family rented the house down there. there was a custodial person present to make sure that they followed the agreement, you know. is this going to happen in any of the clubhouses? will someone come back to make sure that the folks are closing up and cleaning up, doing whatever they do? >> she permits our clubhouses, so she can tell you

specifically. >> it is a little bit different in terms of the cost. we do have a policy for when you have to have staff on site. basically, events that have children, there is a staff see that would not be scholarships because it is an out of pocket expense that we pay. you would pay the fee for that. if you are using a facility where no one is present, we would have to have somebody there during the event. that person was supposed to be there the whole time. >> they were, upstairs. >> we have staff as an additional fee, but we would be covering the clubhouse ft. if there is staff on duty, it could be highly subsidized. >> commissioners, i know it has been a long meeting, but i want

you to know what we are presenting to you here. we will come back to you with specific amendments. this is a big development for us. we talked a lot about the scholarship program, and the numbers have been release spectacular. for the first time ever, this department will provide scholarship funds for people to use the facility for birthday parties and events. this is a very new and innovative development. i just wanted to make sure that it was not lost in all the discussion. this is very exciting. >> public comment? >> i just wanted to take a couple of seconds to answer your question. yesterday there is a community meeting that i actually organized in terms of planning we are going to do on the land.

i had to absorb the cost of the staff, but the staff person was there. he even arrived before i arrived. he was there before the time on the permit. understand that we had this meeting, we had 18 people, which was lucky, because there were only 19 chairs. anyway, at the end of the meeting, we decided we would test an