supervisor chu: welcome to the expanded budget and finance committee. i'm joined by supervisor avalos, supervisor kim and supervisor cohen. supervisor winner will be joining us shortly. are there any announcements? >> please find also phones and electronic devices. complete the speaker cards to be included and should be submitted to the clerk. supervisor chu: would you call items one through 15?

>> item #1 -- this item was corrected yesterday -- proposed budget and annual appropriation or inappropriate all estimated receipts and estimated expenditures for the departments of the city and county of san francisco as of may 31, 2004 fiscal years ending june 20, 2013 and june 30, 2014. item #2, ordnance for the fiscal years ending june 30, 2013 and june 30, 2014. item #3, amending the san francisco park "-- park code to consolidate golf courses provisions into a single series of new sections and increase certain fees at san francisco and its local courses. item #4, ordinance amending the san francisco park code to increase rates for protect -- for professional tennis lessons on park property and making an

arm of the findings. item #5, ordinance amending the san francisco of code to set patient rates and other services provided by the department of public health. item number six, or did its amending the san francisco business and tax regulations code and the san francisco health code relating to fees for food product and marketing establishment licenses issued by the part of public health. item number seven, a resolution authorizing acceptance at expenditure of state grant funds by the sentences department of public health. item #8, resolution approving a contract modification between the city and county of san francisco and the children's council to provide top care services for the time of july 1, 2012 to june 30, 2017. item #9, resolution approving the san francisco unified school

district expenditure plan for the public education enrichment fund. item number 10, a resolution approving the san francisco children and families commission expenditure plan for the public education enrichment fund. item number 11, a resolution approving the expenditure plans for human services care fund for fiscal year 2012-2013 and 2013- 2014. item number 12, resolution retroactively approving the contract between the city and county of san francisco and conrad house to provide master lease house under its housing first program to formerly homeless single adults and money management services to frail and elderly senior citizens. item number 13, resolution improving the administration of direct aid payments to clients of the san francisco human services agency. item no. 14 car resolution

approving the contract between the city and county of san francisco episcopal community services to provide various safety net services to homeless, formerly homeless, and frail and elderly senior citizens for the time of july 1, 2012 through june 30, 2013. item number 15, resolution approving the contract between the city and county of san francisco and st. vincent de paul society to provide emergency shelter services to homeless citizens in san francisco. supervisor chu: thank you for calling all the items on the agenda today. there are related to the budget we have our third day of hearing from departments today. if there are any members of the public in the audience with us today, we want you to feel free to stay and listen to as much of the presentations as you like, however we will not be taking public comment today. we will not be taking public comment today. we will be hearing all of the

department budget public comment on friday, tomorrow, beginning at 10:00 in the morning. if anybody wants to stay and it intends to speak for public comment, we will not be hearing public comment today. we will be hearing all public comment on the budget tomorrow beginning at 10:00. in terms of the way we will go forward, we usually take a break around noon. we will just play it by ear to see how the department to get too bad weather there is a good stopping point. one other state -- i do intend to call a few departments a little bit out of order today. supervisor weeder is interested in being part of the recreation and parks department -- supervisor winner is interested in being part of the recreation and parks department. we will wait for him before getting it till -- before getting into the recreation and parks department. we'll go to dcyf first, and we do want to hear of the reconfiguration because that

will impact at number of departments, including dcyf and human services agency. because of that, we will call human services out of order because of dcyf. why don't we begin with the asian art museum?

if we can have the projector. >> good morning, supervisors. i'm the chief operating officer

and cfo for the asian art museum. we are pleased to be here today. we'll give you a very brief presentation on the two-year outlook for the museum. before i get started, i would like to thank the supervisors, the budget analyst office, the mayor's budget office and the comptroller's office for all of your support over the last year. we really appreciate it. the image that you are looking at now is an image for our current exhibition on view. we hope everyone has the opportunity to come across the street to see this great contemporary show. as you all know, we have an integrated operating budget, the department that operate under the city charter is funded by city funds in part and in part by the asian art museum foundation which exists to raise funds to support the state department. the typical annual budget breaks

down roughly two-thirds supported by the foundation and one third by the city. supervisor chu had asked us to drill down a bit and provide accessibility on the sources of funds that drive revenue for the museum. the slide you are looking at here shows a high level for the operations of the museum. i am pleased to announce that for fiscal year 12, we expect to have a balanced budget and we project a balanced budget for 13 and 14 as well. if you look at the revenues, you can see the city component at 7.8 million for fiscal year 13. the $13.5 million the foundation raises breaks down into three high-level components, one would be fund-raising, the other earned revenue and the third

being other, comprised primarily of the payout from our restricted endowment. if you look at the fund-raising component, that is comprised of funds we raise from our trustees, friends of the museum, foundations, corporations, government entities like the national endowment of the arts and national endowment of the humanities that support programs and exhibitions on behalf of the museum. the other key revenue component is our current revenue, which is highly correlated to attendance. supervisor chu asked about some of the challenges for the museum and to grow the fund-raising in support of the museum as well as producing the kinds of exhibitions and programs that generate the public appeal and

drive the current revenue line. breaking down the city revenue, primarily general fund revenues, about 70% of our revenue comes from the general fund. 28% from hotel tax revenue with a smidgen from utilities me to dance. in terms of how we spend of the city funds, 70% is labor. 30% is not labour. the non-labor components cover things like are fine arts insurance at about 40% of the maintenance costs with the balance of may the 10th covered by the foundation funds. on the labor side, roughly 5.5 million for next year's budget at 60% of that is security staff, the largest component of our city-funded labor source. i am now going to turn this

over to the doctor will talk about some of the great things we have done and some of the things we anticipate over the next few years. >> i compliment mark for a sink report on our financial situation and i would like to echo his gratitude on both sides of the house. four wonderful leadership, guiding us to maintain a top notch institution as well as for visitors from near and far. some of the major accomplishments the museum has accomplished over the course of the last fiscal year, not only visitors facing but the infrastructure, for example, we refreshed the museum's brand. it was very well received and public as well as critics and we developed new programs to

broaden and deepen audiences which is a key effort of our activity, and we competed in a consulting study as part of the effort of restructuring our debt and the next step, we are right in the middle of a five- year to 20-year business plan. we want to make sure we now have very strong strategic plans but a detailed road map to guide the museum's sustainability and growth in the next five to 10 years. of course, the core program we offer in the museum is our exhibition program. several major exhibitions have been planned a, one of which is right in front of city hall, symbolized by korean artists,

and it is a breathing flour. it's not only a symbol of our museum and exhibition, but a symbol of our city. a lot of people really enjoy it and i'm very pleased to hear many of you also liked it as well. after that, the exhibition that really cuts into the artistic expression of china -- chinese learning is huge in the bay area and we want to connect to that phenomenon as well. next year, starting from 2013, it will be the 10th anniversary of the museum's relocation from golden gate park to it city center home. we'll celebrate through three exhibitions. the first is with the china terracotta soldiers -- it has been praised as the seventh wonder of the world. in that time when the city -- we

will present a major japanese exhibition that will be very significant. the third exhibition in the fall will work with the national museum of korea for an unprecedented large-scale exhibition. we are through our 10th anniversary by enhancing the services to the public and after that, in 2014, which we are already planning, we will do a yoga show. i just saw a picture of people practicing yoga in times square and i could easily imagine we will do the same in the civic center square. i would like all of you to be able to participate in the yoga practice in the spring of 2014. there is of course our

educational programs. we're very proud of that. it is a major platform of education. this is the first thing that comes to my mind. our museum is always a platform -- this is the best place to learn about asia, through its arts and culture. we serve children each year from k to 12 and we will increase that in the next fiscal year. in terms of the people who really put this all together to serve the public, the museum has a total workforce of approximately 147 full-time equivalents, they break down will be 58 on the city side of the foundation side is 89. in the summer, the whole city is immobilized to encourage use to participate in jobs and learn about jobs so we accepted three

teams -- to be able to deal with the public all the time -- the other one is the museum install, to learn that not only how to participate in business by how to interact with people at large. we also hired as an intern and offer volunteer opportunities fourteens throughout the summer. in terms of language access, i think all of you care deeply about that. people from a matter which cultural background will be able to take advantage of our offering. in addition to english, we have 64 languages we provide

discounts in sixth foreign- language newspapers if that is the presentation we have prepared for you. you have any questions, please let us know. supervisor chu: thank you. i believe the budget analyst does not have any recommendations for this time. we had conversations around the asian art museum of around a year-and-a-half ago that have a lot to do with the restructuring of debt. the commitment to work through in -- internal practices and your fund raising efforts, could you provide a brief effort -- a brief bit about your effort their quest for >> that was

really led by our city leaders, particularly in the city comptroller's office. thank you very much. there is an ongoing effort to form a business planning committee, that was the business plan i was speaking about. right now, we are in the very middle of the business planning that is projected to be concluded by the end of september. a big component of that plan is about fund raising and how the museum can continue to address its ongoing debt as well as sustaining and the growing its operation. we have been closely in touch with the office to keep them in the mayor's office informed and we should be able to give a full report by the end of september. supervisor chu: the report is to

be completed by september of this year? >> yes. supervisor chu: are there any recommendations? as the controller's office have anything to add to the conversation? >> then rosenfield, controller. we have the first project completed and we look forward to receiving the second, the multi-year business plan the foundation is committed to completing by september. i'm hoping the document provides a long view of the foundation and museums finances over the horizon, including the debt that continues to need to be paid off in the structure agreement. there will be a funding gap remaining that will likely

require a capital campaign. but the intent of the plan is that it informs the city's financial arrangement going forward and are around which the capital campaign can be structured. the proposed budget i have reviewed for the coming year does begin implementation of a number of the recommendations in the first daddy that was completed coming out of the agreement a year-and-a-half ago, including resources in that development office at the foundation. >> i want to add that the plan as looking at the institution holistic way. we want to be able to address any issues in the context of the overall growth of the institution. >> thank you very much. we look forward to hearing back from you when you finalize the report in september. we're very interested in making

sure the asian art museum is sustainable in the long term. we look forward to that report. >> thank you very much. once again, we would like to see you all at the museum. supervisor chu: given that there are no other presentations, we will not be requiring the asian art museum to return next week. >> it is the arts commission. >> i'm the new director of cultural affairs at the san francisco arts commission. thank you for your time in hearing our budget presentation in your ongoing commission to see in the arts as a critical part of building a good quality of life in san francisco for all of our citizens. if we could get the monitor to show our presentation -- thank you.

i believe you all have copies of the presentation. i'm the new director of cultural affairs and i began on january 9. i came just prior to our budget submission. i was got -- i got caught up to speed with our deputy director in getting our first two-year budget proposal in. the proposal came off a controller's audit and review from november, 2011 that highlighted a number of means the organization both in terms of financial system, and controls and issues around staffing structure and morale. our first priority was to correct those issues and build the appropriate systems as well as build an organizational chart that was responsive to community needs and it built the security our staff deserved. that is why you see reflected in the proposal today.

we are about to embark on a planning process to tie to the four-year tenure of the mayor and provide a vision for our new leadership and to engage the community in needs assessment so that we understand the role arts and our neighborhoods and how the art commission can partner with our small and midsize arts organizations to build a healthy ecosystem and improve the quality of life for all systems. -- for all citizens. we have secured $75,000 to match our efforts from this. we will be spending time across all of our districts and we hope to use this opportunity to investigate friends of the arts commission so we can build on our fund-raising efforts to bring in support to partner with the city as we think the private sector is very interested in seeing the arts become an integrated part of our

neighborhood. this planning process will establish a much needed capital plan for our facilities as well as our civic art collection, currently valued between $90 million and $93 million, but without a plan for maintenance and storage. our sources of revenue breakdown to general funds, hotel tax recoveries through partnership with the public utilities commission, the library at department of public works. our license and fees remaining flat for our licensing program and our civic designer the process and other revenues. in this revenue source, every dollar is granted out as a critical lifeline to our small and mid-sized nonprofit all under the million-dollar mark. this is critical at a time when state and federal dollars are at an all-time low for the arts and

our private philanthropy continues to struggle with the economic downturn. you will see a portion of the general fund goes out in grants to the cultural center as well as the cultural equity grants program. the recovery supports number of efforts in the youth services arena. they support our writer's corps program as well as our street smarts and where it lives program. supervisor chu: there is a program administered by the arts commission that the percentage of construction projects. where is that within your sources of revenue? >> that is actually off budget. it is all off budget because it does not aligned with the fiscal year. it projects, the of the good to

be over multiple years. there is a 2% fee on all public develop that goes through that project -- goes to that process. as of this current year, 71% of those contracts went to local arts providers or contractors. the vast majority of those funds are going to local artists. >> will you be speaking about this program later in the presentation or are you not mentioning it in other places? >> i do have a few more points about that in terms of this year's excesses. >> how large is the program? how many people are involved? >> it varies year to year based on the pipeline of projects that come to us. the budget can range depending on the project allocations between this past year and i'm going to -- it was

approximately 8 million for this year. these are off budget due to the nature of that program. supervisor chu: in the future, i would appreciate more information about that program even though it is considered off budget. it's a significant part of your budget being worth $8 million. >> absolutely. you're speaking to a point in our redevelopment of the accounting program. this has historically lived off budget, but we are working on systems that would bring the reporting structure so have a more aligned way to bring this to you at the board of supervisors and are commission on a quarterly basis. >> thank you. moving on to expenditures by program, you see a breakdown here of the expenditures. the two largest programs are

the community arts and education program and the cultural equity grants programs. these are primarily grant-making programs. this includes the bayview opera house and the mission cultural center for latino arts and includes too awful -- to work roll -- to the virtual centers. these are all supported to the community arts and education program. it is also where the writer's corps lives and our youth development programming and building central market to be a thriving arts and culture district as well as working on issues of economic development throughout the city. cultural equity grants is a core program for the agency and will be a key focus for our strategic planning. it serves well over 150 small and midsize nonprofits, a majority of which have historically been