pending initiatives include revitalizing the boat house at lake merced. we have an r.f.p. out for that. urban markets, the marina degauzing station, additional mobile food vendors, putting a lease into the mill rights cottage, implementing merchandise carts in our park, and also bringing a zip line to park property. the partnerships and resource development is also working very hard on philanthropy. both on the capital and then more importantly for this presentation on the operations side of the department. they've been very successful in finding people to support park operations. so adopt a park for speedway and marks meadow. endoug a gardener at crocker amazon.

endoug joe lee rec center. we've had a successful fundraiser at the herps theater for camp du jour. we have been enormously successful in donations to our scholarship fund which is very important. we had a successful gala with the san francisco parks trust this past october. we had a fantastic series of events that the partnerships and resource development division found funding for around world cup at civic center. we had a fundraiser for the peter pan experience. we've been working very closely with san francisco parks trust on the gear up campaign to provide furniture, fixtures and equipment for our newly renovated recreation facilities. and as phil mentioned today, we've secured a grant for the soccer field at mission. other philanthropic ventures that we're currently working on include additional fundraising for camp lejure.

looking for someone to endowing a park and a mission rec center. we are working on a fundraiser in conjunction with hardly strictly blue grass. we are also looking for endowed support for our community gardens and for dog play areas. as well as support for the golden gate park tennis complex. while this presentation is primarily about revenue, as we're talking about good news in terms of revenue, i also thought that it would be useful to take a minute to highlight a couple of really great things that are going on in our expenditure budget. we had a couple of key successes we wanted to highlight. the first is we have been working very hard collectively as a staff to reduce our overtime expenditures. and i think this slide

demonstrates we've been very successful in doing that. over the last two years, alone, we've saved $430,000 in overtime expenditures. and between fiscal year 2005-2006 and the current fiscal year, we've saved over $1 million. we're also working very hard to reduce our workers comp costs. and really fantastically in the first six months of this fiscal year, the department has saved $247,000 on our workers comp claims versus the same period last year. and we're working very hard to change the culture in the department and improve safety in the department. we are maximizing transitional work so that people who are available to come back to work can do so. we have a place to put them. that both reduces our costs and it increases people's

productivity. we've created a staff safety advisory committee. as well as a bimonthly safety newsletter. in terms of ideas that we're currently considering for conclusion in next year's budget, they fall into three primary categories. and i just want to pause for a moment and stress that we are -- this is very early in our process. and there's not much here that's going to change between now and when we submit the budget in february, and we will be back with you to really give you the particulars of each of these proposals as well as hard estimates for what the revenue that each of these proposals would generate. as phil mentioned in his general manager's report, we are being very successful in terms of implementation of our new recreation model.

and we actually have a number of initiatives that we began in the current fiscal year that are coming to fruition. we're actually really seeing the fruit of our success. these are all areas where we're earning more revenue in the current fiscal year than we have budgeted. so we will be able to have our budgets reflect that change in the coming fiscal year. and that includes increased revenue from the teagarden, new swim lessons and aadequatics programming. enhanced summer camps and recreation programming. as well as seeing additional revenue from field permits and special events in the current fiscal year. as we did last year, we expect that we will be able to budget revenue from a variety of city sources. including the lease of spaces at civic center garage, the commission approved that lease

in the current fiscal year but there will be more money in coming years. having the downtown park fund support union square again in the coming fiscal year. and then we hope to partner with some of our sister city agencies to offer wellness and recreation services to their staff and to be compensated for those services. we are also looking at a number of new revenue proposals. including continued expansion of recreation and aadequatics programming. -- aadequatics programming. we are looking at some recreation fees that are currently below market to see whether it would make sense to increase those fees somewhat. we are looking at adding additional concessions and park amenities. we are very likely to propose an r.f.p. next year for the golden gate park carousel and

the birthday barn as well as looking to add a miniature golf course to the department's portfolio. and an additional special events. we will look to capture permit revenue for existing commercial activity in our parks. the palace of fine arts will once again be available for weddings. it's been offline for a number of years is the facility has been renovated. it's a fantastic place and would be a really cool place to get married. we generated a pretty significant amount of revenue from the palace before it closed for weddings so i expect that will come back and hopefully be even healthier than it was before the facility was closed for renovation. and then we're reviewing all of the ideas that we received from our staff last year for revenue generation. and i just picked three examples that to me sounded

both interesting and/or fun. having our staff offer gardening classes to the public which i think is a really fantastic idea. looking at parking -- some kind of a parking concession at gildman playground during san francisco 49ers game. and then just a fun idea, i don't think it would be an enormous revenue generator, but dodge ball tournaments. offered by the recreation division. >> i hate dodge ball but we should totally do that. it's the scariest sport on the face of the earth. do it. do it! everything. oh, shut up. give me a break. whatever. [laughter] so that is -- those are some of the early revenue ideas that we're looking at. they said we'll flesh those ideas out. we will have additional ideas

and we'll be back in front of the commission next -- at the next meeting, at the operations committee meeting with more detail and with numbers attached to our proposals. we had an all-staff meeting yesterday to give our staff a heads-up about what's going on with the budget. we wanted to talk to them before we came and talked to the commission. and we have once again asked our staff to participate in finding solutions to our budget problem. so we've asked each program park service area and rec competency to develop a plan in the amount of $25,000. that can be either revenue increases or expenditure savings and i've asked staff to submit those plans to me by february 4. we are also having -- we will initiate labor management

meetings with our staff as we did last year. we were very successful in partnering with our labor partners on budget solutions. we actually have our first meeting with sciu tomorrow morning to start to walk through the budget. and our different proposals. and we will have at least two all-staff meetings. we had one yesterday and as we get further along with our balancing solutions we will have another meeting with staff to keep them up to date on what we're looking at. as we did last year, we will have pretty significant budget outreach. as phil mentioned, at the start of the meeting, we will be having four community budget meetings. one on the 25th, one on the 26th. one february 2 and one on february 3. and we of course from 6:00 to 7:30 and we encourage all of the commissioners to come out

as well as everyone in the neighborhoods, communities, stake holder groups, to come and talk to us about the budget. as i mentioned, we will be having labor management meetings. i have two more rec and park commission meetings to present at for the base budget submission. i will be at prozac on february 1. we will be having meetings with our park partners. and we expect to have conversations, budget conversations during the neighborhood parks council, quarterly, town hall meetings, it just happens that it's scheduled for january 29 which actually the timing is very nice in terms of our budget process. so in terms of key dates, i will be in front of the operations committee with information about the -- an overview of the department's expenditure budget. and some additional revenue and

expenditure reduction items on february 3. we will bring the base budget for the -- to the commission for your approval at our meeting on february 17. and then we will submit the base budget to the mayor's office on february 22. i will be in front of the operations committee on march 3 with a presentation on contingency budget proposals. and then be in front of the commission on march 17 asking for your approval of our contingency budget proposals. and then as always, the maor submits his budget to the board of supervisors on june 1 and the board at that point will hold a series of meetings on our budget and all. other city budgets as well. -- and all of the other city budgets as well. that completes the presentation and i'm here for questions. >> commissioner lee. commissioner lee: the other piece of the puzzle, the funding puzzle is philanthropy.

and our parks partner is the parks trust. and i was wondering if you're going to -- we've been talking about maybe getting a report about how they've been doing in terms of fundraising. and then -- and they've done an audit recently. could we schedule -- can we schedule a presentation about how much they're bringing in and how that's helping us meet this gap, if we can show, you know, it's a little hard to tell what impact they're -- their giving is making on our budget and the numbers that we have here. so i would like to see that perhaps scheduled for future meeting. >> commissioner, they are actually coming in. they are already scheduled for our february meeting to give an overview of their prior year. which i think you're going to be very pleased with. >> and i would like to see that prior versus prior so we could get a gauge of a trend. just not the first -- just not

last year but the year before so we can see where -- are they increasing giving, is increasing in what areas and so forth. the other -- >> i might add to that, commissioner, that it might not be limited to them. because having gone through that fine arts presentation and seeing the $16 million that was raised through the foundation and the state, etc., there's a lot of philanthropic money that helps us that isn't always clear and apparent. >> i think it would help us to have -- as clear of picture as we can. because if philanthropy is making a difference, we would like to definitely tell that story. and encourage it as much as we can. >> i would suggest, commissioners, that if we can pull this who have for the february meeting, that maybe we have nicole provide a general overview of philanthropy, parks trust is -- is one of our very main and strongest

philanthropic partners but not our only one and the other thing to keep in mind is there is a difference between philanthropic support of operations and philanthropic support of capital. but with that said, i think it would make sense for us to do -- as part of my general manager's report, we can agendaize it separately. to provide a little bit of an overview of the philanthropic support that we've gotten from our various park partners in the past year. >> that's certainly a story we should tell. the other question we had, and with one of our big revenue generating events is the outside lands. last year they went from a three to two-day event. and i went both days. and the third day, could we have increased our revenue since we get a piece of the ticket sales. my question is for this year, are we going to go back to the

three-day. that was in the contract. and we have -- we have revenue sharing. and will that -- or are we going to stick to the two-day? it is our biggest fundraiser. so this is something to consider as we get closer. >> sure. >> commissioner harrison. vice president harrison: katie, what was our total department last year, 10-11 fiscal year? >> last fiscal year -- vice president harrison: $117 million was it? >> the operating budget last year was $117.3 million, i think. our operating budget in the current fiscal year is $117.9 million. vice president harrison: so you're looking for fiscal year 11-12, $100 million -- for next year? >> i don't know. i have no idea what next year's is going to be. >> commissioner, one of the interesting things about the way we are operating -- our

operating budget is reported and has to be understood is that our operating budget, we are also always required to absorb all of our owned cost increases. so while our general fund, we're being asked to make cuts. but we're also being asked to absorb cost increases. which is -- which is why it is kind of difficult to sort of calculate the train. we made $12 million of cuts last year. and our overall general fund budget was roughly comparable. and in part, that's because we had to absorb no wage increases, health and pension, increases, increases in work orders from other city departments, increases in various -- from -- in utilities, in water. it makes the story sometimes somewhat convoluted. >> ok. commissioner lee, did you have another comment? commissioner lee: quick one. very quick. on your parking garages. you show $1.5 million increase from the -- from 2010 to 2011.

>> uh-huh. commissioner lee: what accounts for that? >> i would say the single largest, there are ups and downs in all of the garages. but the single most easily identifiable item is the $1.5 million that we received from the p.u.c. for its lease of civic center garage space. commissioner lee: that accounts for $1.5 million. >> thank you very much. >> thank you. >> is there any public comment on this item? seeing none, public comment -- oh, there is. i'm sorry. >> >> ♪ you've had some bad luck with your budget before park and rec it drove you crazy but with it now and fix it right up fix the budget shiny and new

fix the budget up now and i used to see your budget smile and now some people don't even live here anymore and hold this item and take it with care and i hope you really be there and get with it now and fix the budget up fix it up shiny and new park and rec fix the budget up now fix it shiny fix it up, do that's the right thing to do ♪ >> song selection. >> is there any other public comment on this item? seeing none, public comment is closed. this was discussion only.

>> ok. so we're moving to the next item and we're moving item 20 up. >> we are. so item 20 is public comment continued. albert. >> thank you. >> thank you, katie. >> good evening, everybody. al sandoval here from district 10. and i'm happy to be here to try to advocate for my communalt. that's lacking a lot of recreation. the numbers doesn't lie. i came here last time and showed you the book and said it was a shame. it's a shame now and was a shame then. and basically everything in that book, understand, is on the internet and that's correct, right? all the expenditure reports? so i'm going to work together with the new supervisor milaya cohen. the district 10 supervisor and we're going to get together with david campos and john avalos. we're going to do what --

katie, her name is cailt i? ok -- is katie? ok. great presentation by the way. good power point. she does a good job. i'm concerned about this rec and park department capital improvement and the expenditure report, the monthly expenditure report as of november 30, 2010, the capital project plan and the funding sources. we only have five gardeners in mclaren park. i don't know if you're aware of that. if you weren't aware of it you are aware of it now. five gardeners in mclaren park that -- the whole district 10. they can't do it anymore and forced to work overtime. i'm here to let you know we need your help. as our commissioners and as our representatives and you swore in to help san franciscans. we need your help. and we're asking for help. but we need also john avalos' help. we need david campos' help. and we have to get milaya cohen

involved. because i think there's power in numbers. i think that they have what it will take to get this done. so i just want to say that numbers don't lie. i spent a lot of time looking at that book there. i think that once we educate ourselves and see the discrepancy between the rest of the city, recreation, that -- and how many children are inside district 10 and the area-a-around there, the numbers -- and the area around there, the numbers won't lie and will not lie. i don't think anybody has really put it out there. and kind of beat around the bush. come up here and say we need help. but actually don't get down to the hard facts. so i look forward to working with you guys. i know you have a hard budget to deal with. but district 10 has always done without so this is our time. thank you. >> thank you. >> is there anyone else who would like to make general public comment?

ok. being none, we are through with item 20 and we are now on item 14 as 13 was removed from calendar. and 14 is public comment on all matters pertaining to closed session. is there anyone who would like to make public comment on closed session? seeing none, public comment is closed. and i need a motion. to vote on whether to hold closed session or not. >> so moved. >> second. >> moved and seconded. all those in favor. >> aye. >> hearing none. >> hearing none. >> i think to publicly alike

this would reveal what was talked about in closed session. >> got it, so we want a motion not to reveal what was talked about in closed session. >> we are now on item 19, the san francisco forty-niners. >> i am here to describe to you it a term sheet. we have a nonbinding the peak that we negotiated with the san francisco forty-niners. you have that term sheet in front of you. i am here to answer any questions. we have done a number of things. we have extended and amended the terms so that the term that currently ends in 2013 will end in 2016, with a series of one- year options up to 2023. we have not ultimately extended the lease, we have just change

the existing terms and the extension terms. we are suggesting that we would give a number of rent credits and rent reductions to the 49ers, that combined total 32016, $12.8 million. we have to find the city's maintenance obligation for the remainder of the least, and i think in a good way that is sort of based on the work that is complicated through the existing rent credit structure, as well as the $3 million upcoming payment, as the continuing maintenance obligations. we have to find a new term, which is capital repairs, and

dealt differently with those, but in short they essentially they would deal with arbitration if we cannot agree how those are to be handled, and both sides have preserved their arguments as to what the impact of that arbitration would be. our argument route has been if we do not want to do that it would terminate the lease and we have preserved that argument. i don't know if anybody has any questions. >> briefly, can you give us a sense of the time line and how we may move expeditiously and favorably? >> we will be taking to the board of supervisors and resolution that we expect to be voted on tuesday that would allow us to extend the statute of limitations for the 49-to file a lawsuit until june. in that time, we would negotiate and finalize a lease amendment, bring that back to

you for approval, and then bring that to the board of supervisors for approval. nothing is final and binding until both of those approvals have been obtained. >> do we have any reason to believe it will take until june to make this happen? >> i do not believe so. i think just to be safe, so we cannot have to do it again. the statute of limitations requires board action. there is no reason to do it and run back to the board again before the deadline. we just picked a far out bait. we did not have the term sheet finalized yet. i expect we will be done much more quickly. at the from the standpoint of this body, i think there is interest in keeping the momentum that has been achieved today. >> just to clarify, the settlement that will be drafted between our attorneys is based on this nonbinding term sheet.

the hard work here is largely done. >> i got it. >> we have done a very thorough term sheet. >> ok, thank you. >> seeing no other comments from the commission, that we congratulate the city attorney's office, the department of recreation and parks, the work that was put into it. i know this looks like an easy thing to do, but it was long, tedious, complicated, and admirable. >> is there any public comment on this item? seeing none, public comment is closed. >> with that, i will entertain a motion to entertain the non- binding term sheet. >> so moved. >> all those in favor? seeing none, it is unanimous. >> we are on item 21, commissioners matters. anyone? >> only to comment on how

fabulous the fine arts project was. i went to both ceremonies and it is something to behold. we're very lucky to have all of that renovation done by the city, and partnership with the foundation and the state. it was really impressive. >> i have one. at the capitol committee, we heard from staff from another department about some concerns over the new local hire law, ordinance, and how that impacts contracting. i just want to make sure that we get that on the agenda, we get a briefing from the city attorney as to how the new ordinance impacts are contracting, and i would like that to be heard at committee. >> thank you. >> any public comment