live within 10 minutes of a park. we also operate 24 full recreation centers in our nine swimming pools and offer 600 recreation programs in arts and cultural community services and athletic services. over 500 sessions of 83 different day camps are going on right now. pretty amazing. accessibility is one of our most important principles. this year we will have offered $1.1 million in scholarships. up from $80,000 five 5 years ago. $1.1 million in programs to communities in san francisco. on the park maintenance side, thanks to the supported of the controllers office and this board over the last few years even in difficult budget times we've been able to maintain

our park maintenance functions and in partnership with the controller we actually keep very careful data on the work that we do and i think you can see here that we've made significant progress in the last 6 or 7 years with respect to park maintenance. we operated parks on a quarterly basis and the numbers speak for themselves. also on the recreation side, where over the last 4-5 years we've gone from being the recreation provider to our last resort to the recreation provider and that's something we are very proud about. you can see even in the last resources thanks to in partnership with the recreation staff and sciu, we reinvented how we deliver recreation and able to provide more programs, more opportunities, more hours of programming frankly with less

staff. turning to our budget, the department dwoets half devotes half of our operating budget to staff for maintenance and staff. the next two is the delivery of recreation programming in our rec's centers and swimming pools and structural maintenance yards. we allocate just 7 percent of our budget for administration which includes financing and accounting, human resources, project managing and over a thousand about 850 fp's and summer and temporary employees over 1,000 people and a budget of $140 million. we are a big organization. three percent 3 percent of the budget supports park safety which is a topic where i think we need to take a look at to invest more and keep our parks safe and land

use park conflicts as we get more density in the city and more people visiting our parks. the two remaining parts of the pie are the volunteer services. looking at our budget a different way, nearly two-thirds of the budget supports staff. the next largest slice of the pie for services from other departments. this is a big part of our work including light, heat, power, water, sewer, telephone, vehicle repairs, among other things. we spend five percent of the budget on materials and supplies. we need to invest more. four percent in our services such as garbage pick up and three percent in our clubhouse, 5 percent on debt services and maintenance and citywide overhead. we are really pleased and very grateful that our operating

budget is increasing over the next few years including recreation and park structural maintenance. you see a slight decrease in capital budget in 2014-2015. a one time payment for mta for union square garage we received a lump sum last year. for golden gate park, this is more of an accounting issue. the moving of the staff to recreation. we put them in a different category. turning to some of our strategic budget priorities. we developed these through lots of community conversations with park advocates, neighbors, a variety of different parks groups and other stakeholders. these are the four areas where they seem to be the most consensus to reinvest. first

being park assessment we've -- safety. we've been to this board in the past couple of years to talk about the additional tools to combat vandalism, bad behavior in our parks that resulted in some legislation where we joined every other major urban parks to have park hours now which is something we never had before. and again as the city gets more dense and more people come to visit our parks, having park patrol and park rangers on-site really helps us make sure that everybody gets to enjoy their parks as they want to enjoy them. on any park any day, you see a variety of different uses in our parks. we need a little bit more support to make sure that we have sort of a presence on-site to ensure that everyone wan -- can use the parks. environment and

sustainability the park safety and hazardous trees and the vast majority of our trees in our park system were all planted around the same time. the larger parks in our system were created over 140 years ago. the trees planted around that time have a life span of approximately 140 years. it's time to start paying closer attention to managing our urban forest. we love our trees and we have a tree replacement ratio of 2 .1. anybody who tells you we should not be managing our urban forest or not be occasionally removing a sick or failing tree or remove a

tree in fact for biodiversity in the program, any urban and park system has the responsibility to manage it's canopy. it's something we need to pay closer attention to. active living. this is a very passionate issue for us making sure that all san franciscans are engaging in healthy and robust. many people are obese. many people spend seven 1/2 hours a day on a computer styrene screenn screen or tv or iphone. we have the responsibility to make sure our kids are getting outside

and getting the physical activity they need. lastly, can ustomer service. we like to say we have 880,000 bosses because so many people in san francisco really rely on and use and need our parks. we have a responsibility to make sure that we are doing all we can, not just to be efficient, but also to make sure to interfacing with our park system for the average park user is as easy as it can be. one of our biggest challenges is actually filling the vacancies that we have. we are short staffed. we have been short staffed for many years and we can ill afford to not have the human resources to fill this capacity. you see a little bit of hr support in this column in terms of how we balance the budget and you see another big investment in technology. we need to kind of keep track with a variety of

system of up grades for program registration and for interfacing with our parks in a variety of ways. i think these slides actually just get into a little bit more detail about our investments under park safety. in this particular budget, we have asked for two additional patrol officers and removal of hazardous trees and an additional elect electric an and our own ability to respond to a major disaster is up to snub. you see our specifics here in environmental sustainability. we have over

130,000 trees in our can me. -- canopy. we have 10 arborist. we should be maintaining our trees once every 5 years. we are not going to get there in this budget, but it's something we need to think more about. we are proposing to do four arborist and to help us move forward with respect to managed tree care and we have funding for hazardous tree removal which is different from maintenance in a different category. we have funding for increased signage, this is about resolving park user conflicts and some increases in m and s. materials and supplies. which we currently golden gate park

has $124 of materials supply per acre. the rest has $167 per acre which is still less than required. i think i laid out in fashion our investments. it's primarily for hr and it. we have a little bit of money here for planning for purposes for the pan pacific exposition. it will be the centennial exposition. before there were airplanes san francisco welcomed many to the shores to celebrate the international ex-position and completion of panama canal. we are partnering with other

agencies. we have some great activities planned at the palace to celebrate the year. that's much a summary of where we are investing our resources. >> thank you, mr. ginsberg and for all your work. if we have no questions, mr. rose, we can go to your report. >> mr. chairman and members of the committee, are you considering item 14? >> that is part of the budget so that will continue along with the rest of the budget. >> so should i comment? >> yes. >> let me just say that we recommend you approve the ordinance on item 14. our recommended reductions fortd budget total 788, 914. our

recommended reduction 107, $968, in 15-16. we are still working with the department and we'll report back to you next week on our final recommendations. >> thank you. mr. ginsberg we understand we are still working on the budget. we'll see you back next wednesday. colleagues, no other comments or questions? thank you very much. up next we have the war memorial. mr. clerk? it's part of our budget. could you call items 12 and 13, please. city clerk: sf sf 12 item

126789 ordinance appropriating an additional $14, 496, 0112 for the veterans building seismic upgrade and improvement project of the department of war memorial for fy 2014-2015. item 13: [issuance of tax exempt and taxable lease revenue commercial paper notes - war memorial project - not to exceed $14,500,000] 13. 140641 sponsor: mayor resolution authorizing the execution and delivery, from time to time, of tax-exempt and/or taxable commercial paper notes in a aggregate principal amount not to exceed $14,500,000 to provide interim financing for the costs of seismic upgrade of and improvements to war memorial project and authorizing other related actions.1234 >> thank you. thanks for holding off for parks and recreation. >> thank you. i'm beth murray for the war memorial performing arts center. i would like to thank the mayor's budget office and the controller and the budget analyst for their help in putting together our budget this year. on the first slide that has shown some activity

milestone for the year. this is a significant time in the war memorial's history. on october 10th we are going to dedicate the war veterans memorial in the courtyard. that construction began monday. not that we needed another construction project, but it is under way. we will dedicate that memorial on october 10th. that has been a true partnership throughout the city with the arts commission, dpw and sf puc. it is a privately funded project. on december 12th we are exciting that we'll be opening the rehearsal hall which is also a public assembly facility. the san francisco sympathy put $1 million into that facility to get it #3er789d -- permitted for public assembly for rehearsals

and performances. the next one is april 30, 2014 , of the seismic upgrade and improvements project. we will actually fully 100 percent complete that job on july 1st, of 2015. in july 2015, the war memorial will relocate back and as well as the sf arts commission. on september 1, 2015, the opera will complete their $18 million improvement project to the veterans building fourth floor which will include two new venues on the fourth floor. these are going to be small venues that we will make available to small arts groups and we do plan to do that in partnership with the arts commission again now that they will be in our building. also, on september

1st, the herbs theatre and green room activities will commence following construction. with the veterans building closure which occurred on july 1st of 2013, we did have a reduced budget for both 13-14 and 14-15. we will restore eliminated positions in 15-16, as well as resume some cost for the veterans building we are not having in the two 2 years especially utilities. you can see the usesfer funds for the next year and of course a big change in our budget will be the budget debt services as part of our expenditures. i have also included on this page a summary where we did diminish

staffing levels for 13-14 and 14-15 and we will restore those levels for 15-16. on the next page a highlight update on performance. you can see our performance levels for 13-14 and 14-15 are reduced due to the closure of the veterans building. we will in 15-16 have a record number of events taking place and that's not including a full year of the veterans building 4th floor. as far as the items no. 12 and 13, this is legislation that will allow a budget increase of $14, million.

there are three areas of the shortfall. one is the construction budget is adjusted upwards by $6.5 million. this is due to unforeseen conditions, higher than expected bids on trade packages and limited number of bids. the construction contingency will be adjusted up by $7.9 million. this will bring the contingency to 17 percent which is just short of the average percentage used for historic renovations. i would note that the current exposure with 46 percent of the construction completed is $7.5 million. there is also an associated construction management general contract or contingency fee of $60 million. as you know the board of supervisors previously

approved legislation in january allowing the war memorial to sell development rights and tdr is supposed to pay this appropriation. i will let you know that we have our dpw project manager here and i have additional slides to go through on the veterans building if you would like more detail on that. otherwise i will just show you our picture of herbs theatre construction in progress. you have any questions, i'm happy to answer them. >> thank you. it looks beautiful right now. i'm sure it will look more beautiful later. okay, why don't we go on to the budget analyst report. thank you for your presentation. >> mr. chairman, members of the committee. shall i comment, mr. chairman on

items 12 and 13 which i think have been called? >> please do. 13 is issuance of commercial paper and 12 is the appropriation for that. >> exactly. it's a $14.5 million request for the seismic upgrade project. we've analyzed it and we recommend that you do approve both of those ordinances. regarding the budget on page 256 -- 25 report. a one time savings a million, 6 in the 14-15 budget. we have no recommended budgets for 15-16 budget. it is shown in our report. >> thank you is there any

ponlt -- possibility of that reduction staying with the general fund? >> our understanding is that -- go ahead. >> supervisors ben rowsen field, the war memorial is funded from a different sources and revenues in general fund report. as a legal matter the committee can make a choice whether or not to return the savings or to the general fund. that would be a discussion. >> then on that basis, we would recommend, i don't know how the department feels it would be general fund. >> i would, thank you. i appreciate the recommendation. i would concur with that and i know that we are making

serious investments in the memorial building and will continue to do so. i would expect that we wouldn't have any funds where they weren't needed. we would fill that when the time would come. i would like to recommend if we approve the recommendation we approve the recommendation that these funds stay in the general fund. >> the department concurs? >> yes, we do concur. we had understood from the mayor's budget office that it was a technical correction to be submitted with an offset to fund balance. we will have to look with the mayor's budget office to see if that is going to affect our fund balance for fiscal 15-16. >> okay. >> if that money is to go to the general fund. >> you are thinking not

14-15, but 15-16? >> yes. >> i would like to think when it comes to next year we can work out those issues when they do come. okay. mr. rose? >> the only question is the department requesting they come back next week or is the committee wanting to consider this as the general fund. we'll do whatever the committee states. if you take it as a general fund reduction, you would not hear the department next week. if there is still a question, we will be happy to report again on this matter. >> okay. thank you. i would like to motion that we take it at the general fund or addition to the general fund. colleagues, if you are okay with that, the department won't have to come back next week. ms. breed. >>supervisor london breed: i'm definitely okay with that,

but it was my understanding we weren't going to take any motion without public comment. we can do this today? >> we have been taking budget analyst recommendations. it will be final after. >> okay i'm okay with that. thank you. >> great. we can accept the budget recommendation and the funds be returned to the general fund and that will be pending after public comment, final votes on the budget. okay. >> i think i'm okay with that. can i say what are the in terms of what are the ram if ification of doing that? >> as i understand ms. murray's concern she's concerned that there is an error in the budget and it may leave her with inadequate fund balance. we can validate that in the week ahead in the extent that it does become an

issue. we can report to the committee on that. >> how confident are you that there is an error that led this recommendation by the budget analyst? >> i'm not 100 percent confident. i know that the error was supposed to be submitted by the mayor's office as a technical correction. the back filling or moving it out of the general fund as opposed out of fund balance is a new concept for me today. i have understood the correction is part of the correction and fund balance. >> can i ask the mayor's office to respond to that? department has indicated there is some technical adjustment by the mayor's office. i just want to make sure we know exactly what the

ramifications might be. >> supervisor, kate howard, through the chair, as we know the mayor's office makes technical corrections to the budget during the board's phase. we have been working with the war memorial department to address this particular issue and as you know their budget is funded by both fund balance. essentially a general fund transfer as well as the revenue. and i think we've been working with director murray to kind of create to make sure the department has a stable set of funding sources over the coming years. we would be happy to work with her, with the controllers office over the next week to identify what amount could be returned to the general fund if there is, if not this whole amount. we were intended to company a whole technical correction later today on this issue.

>> what would that technical correction later today be? >> it would be to return those funds to the war memorial on the fund balance. >> the entire balance? >> that's correct. >> so if we were, obviously any vote we take today is tentative. it's really not a real vote. >> deputy city attorney gibner. this committee is not voting. the controller is tracking the greelts of -- agreements of the department and you can ask mr. murray to come back next week or not. either way the committee can consider the war memorial budget as part of the entire budget. >> i know this is an outstanding issue and we would like to move this $400,000 into the general fund for to be able to reallocate that money. i also want to make sure we are being respectful

of the fact that the department is stating there is an error and over the next week that will be figured out. i don't know -- >> since we are not making a decision, it doesn't matter. it's been noted an it's out there. either there was a mistake or there wasn't. >> you can make the reductions today which isn't an argument and we can simply outline the choice here and the issue here and the committee can consider this choice of whether to leave it in fund balance or take it to the general fund with that information in hand as part of next week and part of your final deliberations. >> why don't we do that. everything is tentative right now anyway in spite of public comment. ms. breed? >>supervisor london breed: the budget and analyst report because the expectation that it would go to the fund

balance and not the general fund? >> okay. colleagues, any further questions or comments? >> we'll see you back next wednesday. thank you very much. okay. up next we have our children and families commission. madam clerk, can you call items 10 and 11, please. city clerk: item 10: [approving expenditure plan - san francisco children and families commission - public education enrichment fund - fy2014-2015] 10. 140636 sponsor: mayor resolution approving the san francisco children and families commission expenditure plan for the public education enrichment fund for fy2014-2015. 6/3/14; received and assigned to the budget and city clerk: sf 101234 item 1: 14069: [proposed annual budget and appropriation ordinance for selected departments - fys 2014-2015 and 2015-2016] 1. 140619 sponsor: mayor proposed annual budget and appropriation ordinance appropriating all estimated receipts and all estimated expenditures for selected departments of the city and county