2013--- 2012-2013 and 2013-2014. the mayor's office is projecting a 21 to $62.7 million city-wide deficit. for the following year, $375.3 million deficit. >> why/ >> what are the causes of the deficit? the second year they are seeing fairly significant benefit increases. i think that is a significant impact there. as you know, the major must close the budget before he submits to the board of supervisors. to help close the gap of the mayor has issued budget instructions to all city-funded departments. the mayor's office has asked departments to reduce general

funds support by 5% in fiscal year -- in both fiscal years to absorb all revenue corrections and absorb all non-salary cost increases. as you can see on this slide, the 5% reduction is being pulled to $1.6 million. for next fiscal year i am anticipating revenue correction in the amount of $600,000, and non-salary cost increases in the amount of approximately $900,000. in addition, the 2013 budget will reflect a change to the management structure of the park patrol division as we tried to improve accountability and effectiveness of the unit, and we will need to absorb the cost of that change in next year's budget. altogether we are looking at a

budget reduction right now about $3.3 million, and $2.5 million for the following year. these figures will absolutely changed over the next six weeks as we receive more up-to-date information about work orders in particular, and also on revenue figures. so the one that revenue issue i am working on right now is around parking garage revenue. i have been talking to mta. they told me they do believe budget to budget parking revenue will drop in the coming fiscal year. i am waiting for them to complete analysis on what the reasons for that are, and what the amount is they will give me to budget for the new fiscal year. the budget instructions also are requesting the budget is a 2.5% contingency proposal to the

mayor's office, which is equal to almost $800,000, and finally, the budget instructions are requesting departments to reduce general fund positions by 1%, which is equal to about six fte's. as we work through the process of balancing our budget, we will refer to the seven budget and balancing principles to guide of the trade decisions. as you will recall, we develop these principles in collaboration with the rec and park's that, community stakeholders, and you. just to remind people, principles are as follow. to preserve and promote our mission by creating a financially-sustainable apartment. to protect our ability to provide clean, safe, fun, and well-maintained parks. to preserve our responsibility as environmental stewards.

to protect our mission to provide healthy recreational choices, providing low-cost recreational opportunities and insuring the ability to pay is never a barrier to protect the state -- participation. to work with the community to enhance opportunities to support the department. to preserve our citizens capital investment by identifying dedicated funding for ongoing maintenance, and to invest in user-friendly systems that improve access and finance service delivery come in to train and support our staff. >working in the context of these principles, we are reviewing revenue and expenditure deductions. the department's total budget in the current fiscal year is $127.8 million, and of this, $119.4 million funds are operating budget.

the department has three primary sources of revenue. our revenue budget at its most fundamental level can bring -- can be broken into three components. general fund, subsidy in saving. revenue from the open space funds. and earned revenue. in the current fiscal years you could see the breakdown of these budget is 30% of the general fund, 30 percent signed by open space, and 40 percent signed by earned revenue. -- 30% by open space and 40% by current revenue. property tax continues to show growth in the city thankfully, despite difficult economic times. we have received 37.5 million in the open space funding in fiscal year 2011. that on up to $38.9 million.

we were actually going to do better than that amount in the current fiscal year. the department also benefits from a charter provision that allows us to keep any year in general fund savings, and in the past two years we have supported the next year's budget with a savings. last year in the amount of $5.6 million, and the current year in the amount of $4.4 million. we also receive a subsidy from the city's general fund, which in the past two years harris remained approximately the same. -- past two years has remained approximately the same. we benefit enormously from the property resources that fall under our jurisdiction. in the current year we turned over $50 million to support operations, which i think is pretty phenomenal. these resources include four parking rogegarages, candlestick

park, the teagarden come in many more. these are parks department has earned revenue for for generations. we have improved programming in the past five months or so. the first one supports the general fund budget. the gulf fund is a special fund, as is the marine a fund come in the other category includes support we received from other departments, such as the p.u.c. for services we provide, as well as get funding. -- gift funding. as we face significant general fund challenges in the past several years, we have focused on generating additional fund revenue to meet the challenges. the enormous work we have been doing at the department have

that really paid off, and this slide demonstrates the general fund revenue has been increasing since 2008-2009, and is between fiscal year 2011-2012 we added 1.2 million to the budget. this has come in big ways and small waves. everything from outside plan to break rentals -- outside land to bike rentals. i have slides that illustrate how we allocate our resources. the department spends half of operating budget maintaining parks. this includes gardners, custodians, urban foresters, and integrated pest management staff, among others. the nextthe next two largest are delivery of rec programming in our recreation and swimming

pools at 27%. and it the maintenance of all our facilities by our structure maintenance yard, approximately 12%. we allocate 6% of the budget to administration, which would include the general manager, finance and accounting, human resources, purchasing, partnerships, and property management, and it 3% of the budget supports park safety with our patrol staffing. the two remaining slices of the plate include the marionette yacht harbor and is due and planning services. nearly two-thirds of our budget, 62%, support staff, people. the next largest slice of this pie, 15% of our budget, funds services of other departments. as we have discussed in the past, this includes electricity, sewer, water, city attorney services, workers' compensation,

telephone services, fuel, vehicle repairs, a host of services that we buy from other city departments. 5% of the budget is allocated to materials and supplies and equipment. 5% on a services such as garbage pickup and software licensing. 3% respectively on operating the clubhouse and this is a management agreement. 4% on revenue bond debt service on open space in revenue bonds. 2% on facility maintenance, and 1% on city-wide ever had, including services from the mayor's budget office, the comptroller's office, and other city-wide functions. within the context of those resources and expenditures, we're going to start making decisions for the next two budgets. as we move through the budget

process and start making budget balancing decisions, we are going to reach out to our staff, to stakeholders, the community, labor, and the city's policy makers. this year, for the first time, the department is also planning to implement an online tool for san franciscans to participate in the department's budget process. it will be interesting to see what that looks like at the end of the day. we are, again, planning to focus on revenue as the primary solution to our budget challenges. we will be looking at our existing leases and concessions. one example of with this would be, i think based on a the 49ers performance year to date, they will have enhanced ticket sales next year, better advertising revenue, and we will seek a

portion of that. we will be looking at the possibility of implementing new leases and concessions opportunities in the coming fiscal year. we hope to be able to generate an additional revenue from special events and permits. and to budget the continued revenue growth that we see from the in hands recreation programming that our staff are providing. we also will be looking at operational efficiencies next fiscal year, in the hope that we can generate some savings without affecting service delivery. we will have implemented the reorganization of the aquatics division by the start of the new fiscal year, and that will be reflected in the new budget. we will add a new class to the gardiner apprentice program. we are participating, in partnership with the human services agency in a program that is known as the jobs now 3, which is a job training program.

hssa actually pays for the workers who are in our parks. we have about 100 of these folks right now. they are primarily assisting on the park maintenance side of the department. tremendously helpful, and we hope that this program will continue into the new fiscal year. finally, we may look again at the delay in hiring in the new fiscal year to meet our budget balancing target. knowing that our staff always have good budget balancing ideas, we have asked them for revenue and efficiency proposals. i have asked them to submit them to me by february 6. we're going to do, as i mentioned, a fair amount of outreach around the budget, which is outlined on my budget timeline slide. i am here today with the first of three budget presentations. next tuesday, we're going to

have an all staff meeting about the budget, where we explain to folks what is going on and answer questions and take input. we're having two community budget meetings this year. one on january 31 at moscone the rec center. and one on february 2 at mission rec center. both of those meetings will be from 6:00 p.m. until 8:00 p.m. we strongly encourage the public to come out and talk to us about the budget, hear what we have to say, give us any ideas or concerns. we would be very pleased if you would also attend the meetings. i will be making a presentation to prozac on february 7. i will be back here again on february 2 for an update on where we are in the budget process. and then, in front of the parole commission on february 16 with

what will be our final budget proposal for your approval before we segment to the mayor's budget office. the budget this year is due to the mayor's office on february 21, which is a tuesday. as always, we're operating under a fairly tight timeframe, but i feel very confident that we will get this done. and then the mayor will submit his budget to the board of supervisors on june 1. so that is my summary. as i started with, we're in very early days, still not sure what our numbers are going to look like. obviously, we have a lot of work to do to flesh out what our budget balancing solutions are going to be. and i am happy to answer questions. commissioner lee: ok, this is, what, my 6 4/7 budget, and every

year -- you have to credit the general manager and the staff. i do not know of any administration that has tried as hard as we have to earn our way out of these deficits. it seems like we're back in the same place every year, where we are facing another cut. you know, i was a little disturbed to hear that the mta is reporting that revenue is going to be lower at our garages. at the same time, they're going to charge as a management fee. i do not know commissioners know about this. but the mta is going to charge us a $200,000 management fee for managing our garages that they used to manage for free. part of the city family. if you think about what our general manager and this commission has to do to raise that kind of money through earned revenue, that is a

significant cost to us. and i i urge you to talk to the mta to see if they can reconsider. they are reporting revenues are down in the garages, yet they are excessing a management fee on top of it which we never had to paid before. there are other examples, of course. i would like to ask the larger structural question. in coming years, you're going to -- if the 49ers are able to build a stadium in santa clara, we're going to lose the revenue from the parking. this is a significant source of our revenue. we are going to be faced, potentially, with future losses on our garages if we continue to see declines in parking revenues.

earlier on in past budgets, we talked about the possibility of a parcel tax or some tax to some revenue-generating idea and i can help sustain the operating costs of our department, which is largely a, you know, on the park's site, as we saw from your chart, and so forth. i recognize the bond money cannot be used for those type of operations. bond money is spent strictly for capital projects. have you, general manager, looked at or revisited the idea of a parcel tax or some other revenue mechanism to help with these gaps? >> commissioner, thank you very much for the question put your points are very well-taken. let me start with the smaller parts. we are in conversations with the

mta. they have some charter requirements of their own that are part of the conversation about administrative fees for garage management. we're more concerned about the impact on our revenue line from sfpark and how that is actually operating in our garages and with the impact has been. we have raised the issue with mta, and we're having helped the conversations with them. the mayor's office is also aware of the issue. it is one of our higher priority items in the coming months. there is no question that we're going to face the structural operating challenge if the 49ers and to leave us -- let me rephrase that, if they play their games in a statement other than a candlestick. they will always be the san francisco 49ers.

we are aware of that, and we have raised our concerns. the mayor is very well aware of that. the commission is very well aware of that. members of the board are very well aware of that. i think it is sending this city will have to address in the coming years. to the larger star a short question, we believe that we need more operating revenue and that our revenue lines need to be sustainable. i have said that for as long as i have been in the chair, and we keep saying it. i am thing fall to the parks alliance and organizations like spur, who both agree with us. last year, sparked -- commissioner buell participated with spur and we were $30 million short of a sustainable operating budget, and i recommended some structural revenue enhances for the department.

and action is suggested that we were heading in the right direction by attempting to generate more revenue. and, by the way, the challenges that we have encumbered as a parks department are not unique to our parks department. i spend a couple times a year with the heads of urban park systems around the country, and we're all facing the fate -- the same challenges. frankly, san francisco is leading in many respects in our efforts to develop more revenue. we would like a parcel tax. we would like more revenue, more sustainable support for our operating systems. our staff is working harder than they have ever worked, doing more with less. we note every time we come before you and every time our park maintenance orders are presented that, given the staffing levels that we have, you know, we're performing optimally. and it is going to be hard to provide more services and keep

our parks cleaner than we currently are, given the staffing levels that we have. so we would like to see something happen. the question is, when? commissioner buell: thank you very much. >> thank you. >> is there any public comment on this item? being none, public comment is closed. this was discussion only. we're now on item eight, palega playground renovation. >> good morning, commissioners to vigorously with the capital division. the item before you today is a discussion and possible action

to award a construction contract for the palega playground renovation at to arntz builders for bass bid and alternates one that threw eight in the amount of $10,195,304. with the assistance of the department of public works, we put the bid out in november 2011. we received bids on december 14. received a total of five bids. it was well below our construction of budget. and we had arntz builders. we are recommending an award. the committee is eager to move forward with this project. the team is eager to move forward. i would be happy to answer any questions you have.

commissioner buell: any questions, commissioners? >> is there any public comment? being none, public comment is closed. commissioner buell: let's entertain a motion. >> so moved. >> second. commissioner buell: all those in favor? thank you. >> item number nine, at the helen diller playground. >> good morning, again. the next item is discussion and possible action to amend the construction contract to bauman landscape construction for the helen diller playground project in the amount of $372,977. in april 2011, the commission approved the construction contract to bauman landscape construction. it is approximately about 70%

complete. we have approved about $200,000 to date. some of these changes relate to additional investigation to address unforeseen conditions on the site, to capture some of the water runoff on the project so that foundation work can proceed. the contract amount increase is still within the the overall project budget. we're asking that you approve this amount. i would be happy to answer any questions you may have. commissioner buell: any questions? >> any public comment? being none, public comment is closed. commissioner bonilla: yes, i would like a little clarity here. i am a a little confused. it says that in consideration of the gift that is being provided by the friends of bill flores

park, the playgrounds will be named playground, yet we are referring to it now as the helen diller playground. has that already happened -- >> that has already happened. >> ok, just wanted to be clear. commissioner bonilla: ok, this gave a different impression. thank you. >> my apologies for that. commissioner buell: can i entertain the notion? moved and second. all those in favor? thank you very much. >> item 10, acceptance of a gift from the sacred heart cathedral school.

collected afternoon. i am the assistant director of development for institutional giving with the recreation and parks department. i'd like to prison for your consideration of a gift in place of renovations to create quality skinned softball diamond a profit for girls' softball play at lang field, valued at approximately $17,000 from sacred heart cathedral preparatory. the quality of our community relies on public services that cities provide. high on the list are local programs that can make a significant difference, our quality resources for youth facilities include being ball diamonds, soccer field, basketball courts, and other facilities. i comprehensive study conducted by the women's sports foundation conclude that physical activity in sports are fundamental solutions for many serious social and health problems confronting american girls today, such as sedentary

lifestyles, obesity, and the many help complications associated with obesity. furthermore, in 2004, california passed a law which addresses the need to ensure that any california city does not discriminate against any person on the basis of gender in the allocation of parks and recreation facilities and resources that support or unable youth athletic programs. prompted both by this law and are pigee's interest in providing more regulation softball fields -- fields, rpd conducted an evaluation of its facilities which found that there are a very limited number of fields in this area of the city available for girls recreation softball. given this finding, rpd determined that lang diamond number one was visible field to be converted to a regulation softball diamond, based on

quality and location. current users of the field have been notified of the proposed renovation, and they understand the need to create more complying carell spc of coffield. the have been assured that they will continue to be able to play on the field, even if its is skinned. creation of this requires a significant initial investment to change irrigation, grating, and at infill. financial support provided by cathedral heart makes it possible for rpd to conduct the needed renovation and provide an additional reserves for girls softball in san francisco. our director of permits and reservations is available to speak further to the need should you have any questions along those lines. thank you. commissioner lee: was this a contract awarded through our capital division? >> it is a gift in place, so they are managing the renovation