rejuvenate. there are significant challenges with respect to time unrelated to navigating the regulatory landscape. i will be happy to give you that information. supervisor kim: perhaps we can hold off on questions until the end of the presentation just in the interest of time. >> why don't i jumped right ahead to the two-year budget process. the mayor's office and asked for a 5% base budget reduction. we were asked to absorb revenue changes. the we are constantly analyzing the expectations regarding budget, constantly retooling the revenue projections.

we have been asked the non- salary increases. all told, we have been asked for about $3.7 million and to solve for $3.1 million next year. briefly, i think you have seen the slide at the budget presentations. the department has had some very significant budget challenges, and it has been very important to us with how we go about making policy decisions. for these budget balancing principles, we have been working with them now for a couple of years, they were created in collaboration with park advocates. here they are. our goal is to try to preserve and protect by creating

financially sustainable departments. we want to protect our mission to provide healthy, recreational choices. and to ensure the ability to pay never prevent participation in the system. they gave out $80,000 for the entire year in scholarships. this year, we will exceed $600,000 in subsidized and reduced free programming. supervisor avalos: $80,000? >> correct. supervisor avalos: if you go from 80,000 to 600,000, you were not doing enough before. >> we weren't focusing on that. we go out and raise money

aggressively for scholarship programs, but we were also doing a much better job of communicating with the opportunity and the needs. we did it far simpler. it is linked very much to the school district lunch program. it is easy and promoted everywhere we go. supervisor avalos: i am glad to hear that. especially in the summer months, it is not as diverse as the neighborhood surrounding it. i am glad to hear that we are expanding that. >> you can see the rest of our principles, we want to preserve responsibilities. we want to make sure that we are in close collaboration with the park advocates, and we want to

preserve the citizen capital investment. we now identified dedicated funding, so we have money every year to tackle small challenges. to continue to improve our systems to make them more efficient. the class registration system, we worked very hard on our technology and administrative system to make it easy for people to use our department. i am compelled to offer a little bit of budget context before we offer our solution. since 2008 and 2009, the department has met the budget target and reduced the general fund subsidy by $30 million. during the same time, our

account has been reduced by 60 apiece. by 2003 and 2004, it cost 150 -- it is 15% of the work force. according to a report for finances, they lost 25% of the general funds in the last five years while the general fund overall has grown. it also estimates that we will probably need it $30 million more to meet current operating needs. our motto has been doing more with less. our strategy has been that we don't believe we can cut anymore. we're past the core, so our

strategy has been to grow the amount of revenue we have earned. we have been trying to offset the impact to the community by increasing the earned revenue. that is the approach again for the next two years. we're fortunate because of the san francisco 49ers that we will have some additional revenue from their home playoff games. and the added value on parking special events -- advertising, signage. we also are going to continue to grow revenue from the various concessions.

we are expecting a certain nominal growth each year, but the leases come on at different points during the year. we have had a couple of important leases that have been significantly well. and outside lands have tracked well over budget. it has been helping us keep our staff and our facilities. we are balancing with 1.4 million from the proceeding revenue, additional concessions and leases. without actually raising fees, we've managed to the permit and reservation system.

we're treating everybody the same, and we have seen some good growth there. you're also going to be seeing legislation from laws that will result in an extra $100,000 in revenue for eight variable pricing strategy. the amount we should be charging for playing golf on the weekends is different than charging residents on a wednesday. in terms of variable pricing flexibility, it will maximize the amount of availability. in 13-14, some continued changes. we will rely on long-term payments, the civic center garage. we have an arrangement where they're going to use the civic

center and we will be relying on one of those payments. again, some leases and concessions, a simple assumption that we will see at least 2.5% growth. it was very fortunate. you are wanting some of it in youer two. --year two. this is how we set recreation fees. this is not next year. our recreation fees are listed item by item on park codes, with very little flexibility to adjust to changing market

conditions. they are a far cry from past practices. there is a policy decision about the type of programming and cost recovery subsidy we should be exploring. for some of the senior programs where there is really a strong community benefit, cost recovery is not our goal. we always make scholarships available. we need to distinguish between a program of public benefit or community benefit. we are now doing some really great stuff that is outdoor adventure type programming.

we would try to recover more of the recreations so we can continue to provide community services. we have not taken a good look at what public policy rationale is in decades, to my knowledge. there is a little bit of revenue their, but it is a more important public policy function. it would be for implementation in 13-14. supervisor avalos: i also think that if there is any way to let that legislation developed, it

is kind of hard to have a full discussion in the middle of all these different departments. that will be nice. >> that was the revenue side. on the expenditure side, unfortunately, we have been in a position where even though we have vacancies where we're working with the mayor's office , there is basically traditional savings. we have some results from late hiring.

what we started last year, we will make the staffing model more efficient. but we're banking on 170,000. we are creating a work force timeline for the youth that go through the swim program. they will go from the left guard academy class and will be able to help actually staff. we will continue a rather concerted effort to subsidize. most part agencies do this on the capital side. we try for philanthropic

support. we are in the second or third year, the second year of a grant from a foundation that is keeping the rec center open an extra day a week. we received $50,000 with extra gardening support. we continued to try to identify sources for operating. i want to talk about this very briefly, we asked our staff every year on how to reduce costs and the department. one of the park service area managers and his team came up with an idea, instead of having them go through every single

neighborhood park to do trash pickup, our own staff has centralized points. as a result, we have fewer stops. we are piloting this project in one of the service district this year. we expect savings of $50,000. supervisor avalos: that is existing fte's? >> yes. ecology does a lot of our trash pickup. it will be six or seven different locations. we would create a regional system of trash collection. i leave you with this.

a conversation we have not participated. we could be onto something efficient. >> that is with the existing ft e? >> ecology does a lot of our trash pickup. it would rather go to 67 different locations. our own staff would create a regional system of trash collection. this is a conversation we have not participated in. i -- if you think about the

recreation and park department, you get a lot. the $65,000 a year. it is currently closed. $130,000 a year. and on sundays and mondays. $320,000 a year. this adds addressing irrigation breaks. $71,000 an ounce to the custodial pool. these are very -- the reason we point this out is these trade- offs are real for us. the resulted in real and tangible services. with that i will conclude my presentation. >> thank you for the presentation. are there any questions?

>> it is good to have that. this is one for rec and park. the experience has been -- this is ok. this has been assigned and i could follow up. a couple of questions. i'm interested in a couple of questions. this is in san francisco. i am wondering how this was

worked out. there are parts of our parks that access, it might be a good way. i'm wondering where it is around that area. we are in legislation that will follow up. it is a function that is appropriate. we do have 35 communities.

we do have 35 in oil and agriculture. and we do think there are other elements. this would be appropriate to increase the connection. it is something that is consistent. this is something that would be consistent with our mission. quex are wondering.

i like the idea. this has been done recently. tough if people are not aware of

our services, or what we have to offer. it is not a thing we have to offer. we have worked hard. we have community functions and have created outrage. -- outreach. this is the process by which different staff have put together. and this excessively -- the

success of our scholarship grandparents. we do focus every time we have this opportunity where we get a donation or where able to auction something off or whatever. that money is being channeled into our scholarship fund. awhirl the money we do not raise of comes out of our revenue line. we are subsidizing further. we are committed to this this is a principle that no one will be denied access based on an ability to pay. we will give all the information to your offices and on your newsletters. we are proud of ourselves and judging by her proximity, finance has something to say.

>> we thought -- i will give henry al gore is the town of credit. in needed to back up a little bit. through the housing authority there have been fundamental partners for us. every housing authority residents in the city can access our summer camps and like that. >> other waste transportation can be provided if provided for programs? >> we have had some preliminary conversations with our friends from muni. we have the adequate vehicles and inadequate staff and they are certified to manage that

function. i would be open to creative ways. having transportation is a key component. we have four quarterly events. this summer we bring kids from our summer camps, that is the one day we do organize transportation where we bring our summer camps to the marina for the waterfront, rides and games. the only other point i want to plug which is related to the scholarship is jobs. i know you had a hearing on some on summer jobs this morning. we have a program which is an environmental educational program. in district 6, 10, and 11.

we will have 35 kids, they get paid to do work and to go through an environmental education program. that is all through partnerships that we're making some of that stuff happen. >> lastly, i want to say i have noticed a lot of good work around the parks close to my house. it is not related to where i live. it is a combination of rec and park staff and a lot of great volunteers around the parks. saturday i was at cossutter. there is this great work has been done. i just learned that a man who has been growing -- been

dragging out weeds. the way that the rec and park department has been -- [inaudible] things just happened with volunteerism. that flexibility has been helpful in terms of wanting to be participants. i want to acknowledge that works. the rec and park is lacking in that. i want to recognize that. >> culturally we have this as an organization. will -- my staff understands. we understand the importance of building park champions and advocates. the way to do that is to make it easy for people to get involved

and get their hands dirty. i want to credit my staff for that shift and credit the san francisco park alliance. the park's truck has really done an incredible job to create opportunities. >> thank you. i would like to go back to me conversation. i believe if i am not mistaken their reporting the stadium will be built in 2014 which has some breaks, the leads that the niners have with candlestick and that expires in 2015. i would like to know how you began to consider the impact of

the niners pulling out after 2015 and what exactly will that mean for our city, specifically for our budget? >> thank you for the question. while there has been some short term. as we have these challenges. obviously we're going to have to and we will lead the city's help in -- when the lease expires in solving that challenge when the niners leave. they have been public that their new studio will be ready in 2014. should that happen that the department and the city would be made economically whole. that would have to be p