impressionist on theit will celn francisco's mounting of the america's cup. the fine arts museum as continue to identify and has secured equally superb exhibitions through fiscal year 2014. during the past fiscal year, the education program of the museum serve approximately 250,000 persons, including 58,000 k-12 students. we had the young and art festival with the san francisco unified school district with over 1500 students who displayed their to visual art and 800 students performed as part of the festival. the museum continues to hire over 70 district high school students each year to teach in our museum ambassador program. this year marks our eighth season of friday nights, and the number of artists and

collaborating partners continue to increase and represent the diverse cultural landscape of the san francisco bay area. next week, the community is encouraged to celebrate their inner frida, a fashion event presented by partnership with the consulate general of mexico in san francisco and the mexican museum. we expect 35 attendees and an average of 2,000 attendees each friday night. our educational programs provide bilingual partnerships with their multi-cultural community. the fine arts museums continue to offer access day for visitors with disabilities. this past monday, 211 visitors toward the gaultier exhibition. there were 25 hearing appear attendees who were led by a deaf gallery lecturer using american

sign language. a popular activity is art slam, a presentation of art with 240 artists with disabilities. the event attracts 1000 disabled visitors and guests. fiscal year 2011-2012, we initiated and are already expanding a program of gallery sessions for visitors with early stage alzheimer's. programs such as access days and open house of brought over 12,000 disabled visitors to the museum in the past three years. i am looking forward over the next three to five years, the fine arts museums face several key challenges and/or opportunities. one, maintaining and elevating the quality of our programs and exhibitions to sustain the great public interest we have generated. two, the opportunity to maintain and make the much- needed repairs of both museum facilities -- thank you very

much. and third, to continue to expand the accessibility and availability of our artistic assets to the broadest segment of the general public. do you have any questions? supervisor chu: thank you very much for your presentation. supervisor kim? supervisor kim: thank you. i know in the budget analyst report, there was a discussion about what is currently going on with security guards and around the discussion of your permanent security guards -- you know, the report said 32% are often off on any given day given sick leave and vacation. i was hoping you can discuss that challenge. >> sure. since january, we have appointed hour director of facilities and operations to manage our security staff, and she has implemented several cost-savings

scheduling , as well as encouraging our security staff to be present at work. as of july 1, our new scheduling will be implemented, which also encompasses taking the 27 security guards that were at 35 hours per week that are now reinstated to 40 hours per week and working them into the schedule, which should help alleviate the overtime and temporary staffing. supervisor kim: ok, so one kind of way that is being addressed is with the change in the labor agreement, which is that some of the overtime was due to the fact that working at 35-hour week, you would often extend your day basically to work 40 hours a week. the contract will take care of that over time. i know there has also been some issues around your ability to hire temporary which might be more cost-effective than

overtime. will this be addressed by the new labor agreement? >> yes. there has been a discussion of the side agreements with the union that in the past of not allow us to staff temporary security guards in positions such as the doors as well as other locations in the museum. hopefully we have addressed that and we will be a will tohire temporary security to those position posts. supervisor kim: i know you're increasing your request of the general fund, a 22% more than last year. how much of that is related to the new labor agreement? >> pretty much all of it. supervisor kim: the full $1.3 million? >> there is also capital projects money. supervisor kim: i am curious about the breakdown between capital apartments in the labor agreement. >> $639,000 of that is capital

projects. we have note -- we have one new position at least requested. supervisor kim: so the remaining is for the new negotiated labor agreement. >> as well as a marginal increase in our insurance on the art. supervisor kim: thank you. supervisor chu: thank you very much. a quick clarification. in terms of salaries in mandatory fringe, it went up by just over $1 million, and i imagine that is because of the addition of the hours for the museum guards and standard increases in fringe benefits. >> as well as union agreements, mou's. >supervisor chu: and no other new positions? >> correct. supervisor chu: it looks like there is an additional $600 investment in the capital projects. can you speak to that? >> yes, that is improvements and repairs on our legion route, as

well as rebuilding our boilers and chillers. the following year, we have another additional $800,000 which will continue to address the legion roof as well as masonry, and additional boiler and chiller work. >supervisor chu: compared to the fiscal 12-year, ic admission revenues is expected to go down by $700,000. i am trying to understand -- is that something the museum is concerned with? do we expect this trend to continue? is it cyclical? >> it is cyclical. it is based on our exhibition two the number i submitted for this coming fiscal year may be conservative, but we were not hitting our budgeted number for the current fiscal year. supervisor chu: do you expect this trend to continue or with the exhibits do you think there will be an increase in admissions? >> for the next fiscal year, the line of exhibitions we have

slated should be very helpful to our admissions revenue. and the following year, although i cannot say what we have got wind up, is another exciting exhibition here which i believe will probably push our admissions revenue higher. supervisor chu: ok, thank you very much. is there anything you would add to the presentation? >> no, i think he might be curious about the director search. we have a committee the comprises 25% of the board, a very diverse committee in every way. we have, i think, seven finalists. the search is going to be suspended over the summer because it is summer and i cannot find part of my committee. they're all on vacation in various places. many of them are very young and they have little children and off they go. starting labor day we will

the bringing in the final candidates, and i hope we have a new director by the full board meeting which is the end of october. we're scheduling wonderful exhibitions. as it was said, a couple of them we cannot announce yet because we have not signed papers, but they will be the blockbuster kind of shows. i hope our revenue will be back up, and we're all very excited about it. supervisor chu: thank you. thank you for that update. and we want to thank the board of trustees for stepping in during this difficult time. thank you. to the budget analyst, i believe there are no recommendations. is there anything, mr. rose, that he would add to the presentation? mr. rose? is there anything you would add? >> no, there is not, madam chair. we have no recommendations, but we're happy to respond to questions. supervisor chu: ok, great. no questions and no recommendations.

thank you for your presentation and for being here. we will not need you to come back next week. thank you. our next department is the academy of science. >> -- others from the city. i am greg fairing tin, and i have a great pleasure of being the head of the california academy of sciences. it is a pleasure to talk to you today. i come on behalf of about 38,000 fish, because the aquarium, that is our partnership with the city, also a dozen or two pangolins, 400 full-time equivalents, 11 city engineers that we love, particularly the head of our city engineers jimmy kirk. we love him so much we hope he will work there forever. if you can influence him on that, we hope you will.

and i am here on behalf of one of san francisco's all those cultural institutions, about 160 years old, and at the same time, one of san francisco's young as having been reinvented over the last four or five years. we're still reinventing ourselves. our goal is simple, to be the best institution of its sort in the nation, and then take over the world. san francisco deserves no less. this year, we will have welcomed the about dollars -- 1.4 million visitors to the academy, and one of the wonderful aspects is the breadth of ages of people that come to the academy. i used to talk about birth to death, but that is a donor, so we say it is everything from birth to the journeeternity. infants to nightlife. we had pride night life. and all the way to very old people like them to museums.

it really is the people's academy of sciences. within that context, the part that you in the city have been wonderful partners in since 1923, of course, is the aquarium, which is, if we have to identify one single attraction that is most popular in the institution, it is the aquarium. everyone loves the living world and the fish, and everyone loves the new aquarium. artnership which we appreciate very much. you might be interested that generally the budget of the institution, 60% of our budget is money we earn from membership sales, to get cells, and other sources. about 35% of our budget comes from our best friends. that is, our supporters and donors between the annual reminders that we give them about why they should be generous. and about 5% from the city,

which we appreciate very much. of course, we would like a larger, but we appreciate it very much. one thing we have a reputation for, besides being a the most-- coolest place in town in terms of science, life, and sustainability, we also have a reputation for printing money. when you talk to people about the california academy of sciences, they think of lines and they say, you must be making a lot of money. in fact, we're not printing money. i want to clarify that. if we could, we would. it is a wickedly expensive place to operate, and that is because it is a museum of living creatures in the living creatures are expensive to operate. a few more statistics about the academy of your recent audit of cultural institutions in the city said very accurately that

we provide the most robust the ready of exclusive benefits to residents and students of san francisco. we do it for a simple reason, san francisco is our home. that includes school groups, and if you come to the academy in the morning during the school year, you'll notice that the average height of the visitors is rather short, and they tend to run around your legs. well, those are all school kids. if you want to see some, visit us. we also have evening programs and paying internships. quite a marvelous army of young educators themselves. as well as all of our programs for students and teachers focused, for the most part, on the city of san francisco. again, because it is our home. our programs include programs and specific lessons in spanish and chinese as well. if you look at attendance at the academy, there was a time when coming to the academy was

risking long lines but that was in the beginning. there was such a pent-up demand for the institution. as we expected and projected, our attendance is settling down to about1.4 million visitors per year, and we expect that level to be characteristic in the coming years. we have attracted over 6 million people since we opened three years ago. i remember the day and i remember the lines, but now it is said to come to the academy. just come on a nice week day in the afternoon, and you probably will not have to stand in a long line. and the whole issue of how to balance the cost of operating this very expensive institution and the money that we can make and the money we can raise is, you might say, and existential challenge. we do not want a smaller academy. we believe all the parts of our current academy are essential to its success. the steinhardt aquarium is is

this a the partnership we have with the city since 1923, since the brothers set to the city, we will build an aquarium if you put on in the city charter the obligation of funding the operating expenses. well, we build a new aquarium falling on their legacy, and that relationship continues. most of our direct expenses for the aquarium have to do with labor, as you might expect between biologists and our 11 city engineers who are absolutely essential to the institution, because they're the people who make sure that all the water keeps running. if you are a fish, that matters a lot. and if it stops running, they tend to float to the surface and it is a very bad sign. the total aquarium direct expenses are shown in this chart to the total aquarium

direct expenses, that is what it really costs to run the aquarium in just direct expenses, not even including indirect expenses, versus the funding that we receive from the city, you'll notice that our direct expenses have been rising over the last several years. several things have been going on. one, we are actually learning how to use this new facility and what it requires. that is inevitable with such a transformation. the other is something you'll never guess, and that is we design the aquarium to rely on it seawater, that it comes from the beach. after all, you would think if you're half a mile from the pacific ocean, you might be able to take advantage of your natural resources. the only problem is the pacific ocean is too polluted, and if we pomps the water directly into our tanks, our fish become exceedingly unhappy and think

about floating, as i said. so we have to make our own seawater. this is a reflection of issues having to do with the sustainability and issues with the environment and so forth. 100 years ago, we would have pumped water from the pacific in our fish would have been happy. 100 years later, the runoff from the land police the ocean near the beach where we can actually access water. we cannot do that. so we may see water. for a while we were purifying the pacific ocean. we cannot do that anymore. now we have to make our own seawater, and that costs money. that is why expenses have been rising. one thing that is a slight downer is that in recent years, the amount of direct city funding for the aquarium has been trending down words, as people say delicately, 17% over the last five years. and that is a trend that we, of

course, would prefer to see go in either direction. because, already, that is about two-thirds of the cost of running the aquarium. at the same time, for all sorts of very good reasons, city engineer salaries have been, by agreement, rising. so the fraction of that funding that goes to actually running the aquarium beyond the city engineers has been decreasing faster. i showed a little picture, by the way, up here of our newest aquarian exhibit. i hope you have all been to animal attraction. it is downstairs. it is wildly popular. it uses ipads, because we discovered that kids were writing and touching everything and expecting something to happen, so we had to get with the program. this has been wildly successful. it is an example of something we're trying to emphasize, and that is we're emphasizing the

academy as its own producer of the exhibits. we have wonderful people, wonderful scientists, and wonderful biologists, and wonderful content. our goal is to make wonderful programs for the city of san francisco. our newest exhibit of by the way, the we just opened -- i will do a little advertising, is earthquake. you might wonder what that has to do with san francisco, but i think you know the answer to that question. so do come to the academy and the quaked. check out the ostriches. it is wildly popular. our visitors aren't joining in. something like 95 of those who have seen it earthquake say it is terrific. if you have not, unless you are in the 5%, you are in for a terrific experience. we have a major project for fy 2013 that we have to implement, and it is a capital project that

has to do with creating a new and expanded animal care conservation facility. we need that to continue. that is sort of the zoo world good housekeeping seal of approval. that will cost several million dollars. we hope to be talking with you about that at some level. our goals, of course, are to get on a trajectory in which a larger fraction of the strident -- steinhardt aquarium funding comes from the city and not a smaller. ultimately, of course, in time, to fund the aquarium as was agreed with the steinhardt brothers, from the city income. that would still be relatively small fraction of the royal academy of sciences, but it is a critically important fraction because san francisco's aquarium

is one of its most popular destinations. regarding the specific proposed budget for the coming year, we would love if we could have restored $39,000 that represents the extent to which the required increase in the city engineering compensation it eats into the and additional money to feed the fish. on behalf of the fish, i beseech you to think -- hungry fish are not happy fish. beyond that, of course, we would love to be on a trajectory to have far more of the $6.5 million in direct costs, from our partnership with the city and county of san francisco. with that, here are some of my fish. they are waiting. you just cannot see them through the resolution of the screen.

but they generally are waving. thank you for the partnership. it has been going on for a long time. this institution, like the fine arts museum, is one of san francisco true genuine gems. we're determined to make it an even brighter gem. supervisor chu: thank you very much. supervisor avalos? supervisor avalos: thank you for your presentation. my family and i are big fans of the academy of sciences. my son calls at the academy award of scientists, which says a lot, i think it is expensive and expensive to run. i realize that. and this new building with the aquarium and exhibits i imagine are expensive to run. we learned that the members is the most economical way for san francisco residents to enjoy the museum and be able to go back, and it pays for itself. i know in the past we have had

days where admission -- it probably still continues, but we have had days where admission is free for san francisco residents by neighborhoods. if you can go over that schedule, that will be important. maybe we can get the schedule in our offices to weeso we can shat with our residents as well. >> we would be very happy to provide that information. we would be eager to go beyond that and actually help you in your district to get the information about our free days and other opportunities people have to visit the academy. it is really seriously important. what you may know about our program for fourth and fifth grade students, we invite all fourth and fifth grade classes in the city and county of san francisco from all schools to the academy every year.

we provide preparatory material, follow-on material, teacher training material, and most important, we provide a bus. that is one of the critical issues. we also provide every student a chip that is the student's family in for free. supervisor avalos: that is great to hear. my wife is actually a fourth grade teacher, so she will be taking advantage of that. >> i hope she's taking advantage of it. there's one other thing we're doing with that, and we experimented it the past year and would like to expand it, particularly if we can find a donor to help, that is that we set aside and experimented evening in which were invited -- like i said, the students were given a chip for their families. well, not all people take advantage of that. matter of fact, few people do. we set aside a night in which we invited the family is from the fourth and fifth grade from a specific school and a specific

district to come and the place was open for the. we provided chinese translation that night. it was appropriate to the neighborhood. and it was a wild success. people who never would have felt comfortable, perhaps, coming to the academy, and transportation. they had a ball. i was there. my wife was there. we had a ball, too. supervisor avalos: that sounds really great. i will talk to my wife and her school for that as well. my kids go to the same school. so do we have days of the year designated as free for san francisco residence? is there material about that? >> we will give it to you. we have neighborhood freak days. and we have global free days. we switched those from the on wednesdays, which was not really necessarily friendly for families, to being on sundays, which is much better for families.

then we have the neighborhood days ago district-by-district. supervisor avalos: where can we find that information? >> on our website. >> we will send it to you. it is a great site. , and welcome people at the front door. supervisor chu: thank you so much for your presentation. i want to appreciate the strong partnership with the academy of sciences has with the san francisco unified school district. it is an incredible thing to the our fourth and fifth graders. i know that partnership is appreciated by our teachers and surly by me as well. -- and certainly by me as well. i had a quick question regarding the 5%, and also, i just wanted to say it is really incredible how much the academy of science its revenue from a fund raising.

95% is outstanding. we provided a small portion. in a small portion, do you include in-kind services? whether it is rec and park, city attorney, or the puc? >> no, we do not. sometimes i think we provide services to the park. >> you may. and you prove -- you clearly provide a ton of benefits. >> early in the morning, you can see we with a lawn mower out there. i try to get up very early. >> ok. >> and we have a great partner in that, and he has been a great partner in the academy. supervisor chu: we love to get the free weekend for our residents as well. we did get them last year. we thank you for that. we would like to continue advertising for that. >> we will love it if you would,

because the partnership is genuine. it is the most important, to have my soap box, the single most important resource for the future of the city and the country is also its greenest, and that is kids. and the extent to which we do not educate kids well is the extent to which we fail them. that is why our fourth and fifth grade programs are so important. supervisor chu: thank you very much, supervisor kim, and thank you for your presentation, a doctorfarrington. i know there are challenges with running the academy. i look forward to the conversations continuing forward. i know there'll be more challenges as the facility begins to age more and more. to the budget analysts, is there anything you would add? >> madam chair, members, no recommendations, nothing else to add. supervisor chu: thank you very much. no other questions, so thank you for your presti