i would like to thank you for your support for the asian art museum. without your support we would not have success, and we solve the major obstacle for this wonderful institution. with the city of san francisco as well. and the goals were said very clearly. we needed to do this to achieve financial stability. what is happening now, is immediately after the crisis was solved, we restructured the museum so that we could better streamline the operation with more of a focus on business development.

there was the revenue and the sources that helped to sustain what ever the program was that we wanted to develop further with the mission. looking at the next coming fiscal year starting on july 1, we will show public engagement campaign, in order to boost further awareness of this institution and to develop a new program and last but not least, to initiate what is required of us by the agreement between the museum and the city, but also as a further growth of the museum debt. they have this potential. i would like to share with you some wonderful news. if you look outside of your

window, going back to the office with a wonderful exhibition, we have received spectacular revues. the new york times and the wall street journal and the los angeles times. they say it is a stimulating to look at as it is to look at. we have our very own san francisco chronicle, and this is when we will not mess. the new york area, has a tremendous confirmation. on tuesday, we have a note from

harvey rose, we will increase the attrition level, and i have to respectfully disagree with that proposal, because the nature of this museum is very different, and the situation on the ground is very different. let me know and by the chief operating officer -- >> let me invite the chief operating officer. >> i will be very brief, supervisors. thank you for the opportunity to be in front of you. the government structures of the museum, the asian art museum foundation, this is a private foundation to work closely to

achieve the mission. and in terms of the charter, the asian art museum we will maintain and displayed for the asian art we have a seamless integration of the operations at the museum, and an integrated budget. the budget ranges from $719 million, and we have 54 city employees. the city picks up roughly one-

third. the sources of the finding are threefold. the hotel tax revenue is about 7% in the get some funding. we thought that this was important to give you a high level about how the city funding is spent. $5 million of this -- 60% pace with the security staff. we cover the maintenance cost of the museum. we have a brief overview, and with respect to the budget analysts cuts, i want to reiterate the statement, we do

disagree with the budget analyst recommendation. i think all of you know this. we walked with the mayor's office, and we have a large transition figure that keeps us from the minimum staffing requirements. the past year has been an anomaly. we had multiple retirements, resulting in salary savings. but this relatively small staff goes years without any retirement. we have several critical open positions, and the proposed attrition is equivalent to eliminating -- three of the museum guard positions. we were thrilled to be able to eliminate the full complement of

guards. we expect to come to an agreement, but we hope that we can count on this committee to understand our position and help us maintain our critical staffing needs. thank you. >> that looks like there was a final slide to talk about the five-year plan. we should let the department finish this. >> it will take me multiple this out. this is a challenge for us, balancing the revenues and expenditures over the next five years will be a challenge. it is important understand the city funding carries less than the minimum cost of the city charter obligation to maintain and displayed and provide

security. since we opened in 2003, the museum has sought to curtail the expenditures. we have been driving up attendance from all beijing -- all available sources, contributing to the earned revenue. the ability to maintain the viability and fulfill the public mission is going to remain important with the global financial support. >> we have a few questions. we had come to the board with a restructuring not so long ago. we had a concern -- concentrated effort from the perspective of the board to raise money to be able to supplement that package. >> the process had been going

well. we have the campaign consultant, and we're working with the mayor's office. we need for the mayor to begin -- and meeting with several key stakeholders. we have the face of the capital campaign. >> the sales with the revenue, i appreciate the comments that have been made about this exhibit, and it is great to see high praise for this. this is going to be a large piece of the viability.

>> one thing that we took with the global financial crisis, we are extending the duration of the major exhibitions, and i think that this was a prudent decision to make in terms of cost savings, we have been hurt by this in the most recent fiscal year. the average attendance is roughly 250,000 visitors per year, and a low of about 165. what we are expecting next year, with the new exhibition, we hope to build our way back to about 200,000 in attendance, still short of the average, but

still 40% increase so we think that with the restructuring that he has spoken of, the exhibition's we have in the pipeline, we can build and exceed this level of 300,000, and hopefully sustain in this range with the restructuring. >> and is the strategy to look for attendance from tourism, visitors outside of san francisco. is it to end there. the base at home? how will you coordinate these efforts? >> the strategy has to be successful, and we have one of the most diverse asian-american communities, and they will engage very intensely. we also have the tourists from

all over the world, and we have the mission of the museum, to give a voice to the coaches, and at the same time, people with any aspect of the museum, people will never lose sight of the educational aspect of this. and the community in general, they will look into the richness that asia has to offer. in terms of the asian-american communities. >> we will go to the budget analyst report. >> this department has said that they are different, but all that we're asking for from this department, as we have passed from every department, is documentation to refer to it -- reviewed the recommendation.

the one recommendation that we have made -- we will work with the department assuming that we can clarify this. there is nothing different about providing documentation. this is all we ask. the recommendation is on page 3, $181,000, in attrition savings. this is very easy to document and and we will withdraw or reduce this recommendation if we are provided with the right documentation. >> what i would like for the department to do is get the documentation that we are looking for, and if there is a different hiring schedule, please provide that to the budget analyst,. >> we will be happy to do that. we only receive this on tuesday afternoon.

we look forward to this situation. >> thank you very much. we will see you next week and thank you for your presentation. we will start with the arts commission. >> is this a slide presentation. >> thank you for the opportunity to discuss the budget committee. before i get into the specifics, i thought i would take a second to recognize the importance of arts and culture in helping to really sustain the reputation of the city of san francisco as a cultural destination city.

the 16 million people from outside of san francisco visited us last year. and what will draw them to the region and the city, is the cultural richness that we have here in the city. we see this in public spaces throughout the city. in all disciplines, to the neighborhood cultural centers, this reputation as a cultural city really helps to bring all those people here, to help us to sustain the largest employment sector of the city, the hospitality industry. the hotel taxes and we capture the benefits, the direct benefits to the city of this interest in the city.

and the hotel tax brings in 62% of what, in the current fiscal year, will go to the general fund. and only 20% will go back to the cultural sector. all the different things that we do there. some of this funding also goes to support housing. i think that as the supervisors are now considering all the different challenges that you are faced with in terms of balancing the budget and making decisions, it is important to remember that the cultural sector, this could be a net debt -- and net revenue generator, and an advanced generator of revenue for the city. can we get these slides? this was the slide for what i

just said, and the next slide? this brings into the specifics of the art commission budget, overall, we have been able to, the arts commission has been able to make it through this tough economic time, with minimal reduction. currently, if we examine the committee here, there is a positive variants of over half a million dollars. we will get into what this really means because some of that -- there were some technical adjustments. but the lion's share of why there is a half million dollars -- this has to do with the fact that there is a recognition by the capital committee to support

a critical repair at the opera house. this is one of seven cultural centers that the arts commission maintains throughout the city. this is the only cultural center, in the southeast part of the city. this year it was put on the national register of historic places, and the problem that has been addressed by these capital investments of a half million dollars has to do with the dressing a long-term neglect of physical facilities of the cultural centers, where there was a leak at the opera house that was not discovered for some time, compromising one of the major sustaining walls at the opera house and it has now been determined that this wall will

have to be replaced and a half million dollars in investments that we're happy to see in the proposed budget by the capital committee will help to replace this wall. and this item has been designed and analyzed by the bureau of architecture, and the project is ready to go, waiting for the funding. additionally, there is a negative impact of the cultural centers, specifically to the budget, with the reduction of $50,000 to the cultural centers that are there, and this is -- when we think about the cultural centers, we know about the specific organizations that this constitutes from the mission cultural center, from the latino arts to the bayview opera house, but and a cultural complex in the career cultural center.

at what we do not recognize is that lots of other groups and organizations use these facilities as well. so that when you see a reduction to the cultural center and their budget, the impact of this is that they will try to capture some of the lost revenue by increasing the fees that they charge to other organizations to use their facilities. there will be a reduction in the number of programs offered, a reduction in staff and operating hours. the other area where the commission is sustaining a reduction has to do with the cultural grants program. this is the program that has the greatest reach of all the activities that we have undertaken in the arts commission except for public parks.

the cultural equity grants program is a program that helps, with the historical and underserved communities to really expand their reach and fill their cultural programming. the proposed budget will be reduced by $88,000, and this means that we will probably see seven fewer grants, we will see about 75 different cultural activities, less than the year before. there will be 400 artists that will not be helped, and about 51,000 participants or audience members that will not be able to see. this is the anticipated impact and i wanted to highlight a number for you there, and this is the leverage number. the arts commission is not the only sponsor of many of these

grants that are given. they get the grants from the city and they will leverage other funding, and so, it is very important to note that -- for instance, with the 2 million that the city has invested, there have been at least 7 million that have been leveraged on the part of the different grant recipients. in wrapping up, we receive a modest increase to the collections and the maintenance. for a long time, the arts commission has been having to deal with a $15,000 per year maintenance fund, and the current fiscal year this was increased. they bombed this up to 75,000 of

the proposals go through. what would happen with the maintenance funding is that this is gone within the first few months, dealing with the issues. one thing that is very important for the city to remember is that there are 3500 works of art, and we recognize that the city can take this by themselves, this is a way for private citizens to support the maintenance of these funds. we have the former commissioners, and we are hosting an event at the home, recently. we have the specifics -- the art

collection, and those potential supporters. these are the various variances, and there was a question regarding the five-year outlook for the arts commission. the greatest challenge that we are facing is that this deals with the capital needs of the center, and these have been in the hands of the city for several decades. for different reasons they have sustained the current maintenance period there is the back wall of capital repair. the backlog is about $5 million in capital needs. and the arts commission will

play a greater role in preserving arts education and youth development, with the other programs that we will implement to help with the schools, and the school district is challenged as we all know. we believe that this challenge will not go away. we think the arts commission can play a role in arts and education. and we are working to maintain funding for the cultural equity grants program. this is up -- this is a way to make a wise investment to make certain that the city is attractive and sustained. thank you very much in i am available for questions. >> thank you very much.

the budget analyst as not have a report on the budget. but with regard to your public art program, this is mandatory. this will find the site. can you talk about your program and everything that you are working on. >> this program, the ordinance is one of the earliest ordnances, going back to about 1969. this funded through the capital budget that these projects will take. when the city decides on a major improvement, about 2% of the eligible construction budget is

set aside for the acquisition of works of art. one of the things that we have done, this has been created for the design, and the utilization of the public facilities, we have learned a national reputation for the best practices. the americans for the arts in san diego, there were three installations listed as the best in the country. we have more on the international artists and how they can be put in the fabric of everyday life in the city of san francisco. >> i wonder if you have

considered how we could utilize this to help the projects. understanding that art is an important component, is there a way to work with beautification around certain areas and could we utilize some of this with a particular project? >> one thing that we're looking at is if there are city projects, and there are fewer and fewer resources, this is something we would like to see happen. has your staff and working with the project with the city department and otherwise, to look at how hard will function, with the project design. 2% does not always go on the interior or invisible arts commission.

we have the international airport them balls the floor, for instance, that the users walk into. this is the entire entrance to the hospital. with the facility, this begins with the outside. we are always looking for opportunities for how the improvement -- it is limited to the site, where ever decide improvement is, that is where the 2% gets to be spent, so this includes the approach, the exterior, the public interior of the spaces, so we think of it as a continuing for the user experience. supervisor chiu: