Good afternoon. Welcome to the a special meeting of the government audit oversight for today wednesday, october 265, 2016, im the brunt chair aaron peskin joined by board president london breed our clerk clerk erica major madam clerk, any announcements . Yes. Documents to be included should be submitted to the clerk. Items acted upon today will appear on the please read the brunt first item. May we make a motion. Id like to make a motion to excuse vice chair supervisor norman yee can we take that without objection . That will be the order. And madam clerk the first item on a resolution urging the employee richard to hold a public hearing and issue a report thank you. The sponsor of that report has asked that we we mr. Unexcuse supervisor yee he showed up and supervisor yee we called item fundi have been informed this to the to postponed without objection. Supervisor yee is excused any any Public Comment on item one without objection well continue that item through the chair. Madam clerk the brunt final item. The oversight processes for the Fine Arts Museum of San Francisco and its board of trustees thank you, ms. Major colleagues as you recall on september 1st, we held a hearing looking at the governor structure and oversight of the city funding processes with regards to our cherished Fine Arts Museum and timed to continue that our new director of Fine Arts Museum couldnt be with us i wanted the brunt opportunity for us to meet him in public as a stewards that institution forwarded and followup on a few items the original impetus for the brunt hearing came around resolutions having to do with things in the newspaper but an opportunity for us as a board of supervisors to reengage with the Fine Arts Museum which is an asset of the brunt people of San Francisco and has a very interesting governance structure whereas, the gentleman is familiar although apparently seen other structures in piss past we have a city does in the Fine Arts Museums of San Francisco a nonprofit side in cofamily the 5013 nonprofit orientation all over the place a third organization a foundation for the brunt museum and some of those city puts in approximately 18 million at the last meeting believe that is incorrect 19. 2 in the current fiscal year about 25 percent we believe approximately of the brunt annual operating budget of the two museums known as the legion of honor and the young museum so i wanted the an opportunity to talk about some of the things we might be able to improve over time particular as transparency there are certain things that are transparent to the public and to the Decision Makers like ourselves and heretofore are not taint with that, i want to give the brunt gentleman an opportunity to speak to us and for us to get to know him and to followup on our last hearing we raised a number of issues if there are no questions im going to turn it over to mr. Hotline and welcome were delighted that youve joined us you have a long history in stewardship museums around the brunt global with that, please come on up. Well, thank you very much supervisor peskin and supervisor president breed and supervisor yee im here able to lay out some thoughts but i guess those structures and outcomes about the organization of the Fine Arts Museums of San Francisco and respond probably to some of the questions that have been raised at the first meeting and those are kind of at a briefly to prepare for to hearing pr ive prepared a presentation that covers this and tends ill show pictures it is nice to show you some things to kind of yeah. Oh, i can see that thanks. Okay. All right. Okay so. Good. Just quickly as a general remark i as it supervisor peskin mentioned alluded to identify been running museums no frankford in the last few years ago ive got experienced 40 in running different kinds of institutions one was a private institution private foundation no germany and this was a limited Liability Company but as one that run as a Nonprofit Institution i have a fair amount of experience with those institutions in fact, quickly address kind of a general thoughtful the brunt Fine Arts Museums i think what youll see in the next couple of years more emphasis on the identities and the brunt beyond especially at the legion of honor nothing really bringing in more to the attention of a broader audience and a bigger role internationally as well being really one of the defining institutions for the brunt city and i think i can see this as a someone coming from germany or as a European Focus on San Francisco and some of it it obviously building on the whole development of the Tech Industry and other sectors i think the brunt culture history of San Francisco is extremely important to understand what this city it is something that brings me here and be able to participate in this environment i know you dont want to hear about great plans arrest advisements about the brunt museums but hear a little bit more about the brunt details and data about this institution so i kind of threw sorry so the second slide shows you one the challenges of this institution and basically makes a difference ill say if you accountability compatible institutions or participating institutions in the u. S. You compare the brunt finances of San Francisco so new york or the museum of fine arts in boston or if you look at philadelphia or cleveland you have a steady small endowment you see this as a red triangle basically about 3 percent of our total operating budget is covered by endowment that basic means the brunt other areas of income to balance the budget on the wooden revenue part in the Blue Triangle which is our income and other aspects like membership you, of course, go have the very important support participation from the brunt city which covers 27 percent of our total costs that is being invested in the city in security and maintenance of the building but then a fairly large portion with the green sector of contributions that is the major nominations support for the exhibit shuns and the General Organization and to one of the tasks ill say of every director especially right now for me is to be able to enlarge that particular sector that means we need to portray an institution that is organization alley sound and transparent and really taken care of of funds in essence in a prudent way that is part of story of that institution and on the other hand, i want to make sure when we move forward that ill see with the public eye and the preservation about the brunt museum the art and education that is bringing about so i think that is a core element of that if you look at what the Cultural Assets it depends on how you define that but the brunt core part would define that the context thee were called a Nonprofit Organization is the brunt Permanent Collection ill talk about that in a minute that has to do with with the brunt city and the core part of it the exhibitions we bring about but, of course, the two buildings that we maintain that are landmarks building and profit savings accounts and the brunt whole program in the area of education, scholarship and outreach so talking about the entire layout of the the spaces the legion of honor has in total 4 hundred and 10 thousand square feet if i look at how much Square Footage is dloftd to excellenttion space noted about only one quarter of our total Square Footage is for exhibition the brunt rest is actually Storage Space where we must maintain and keep our collection of art bring in artwork conserve them and treat them conservatism space in that context the total number of objects in our collection and i mean that total number we have a total nuke but sometimes difference on how you calculate i dont know if you have a whole set of prints or 10 but in total we know we have numbered one and 26 thousand plus objects those kind of if you spread them out to the departments as you can see beyond thirty thousand objects in the legion about one and almost like 90 thousand that basically has to do with with the brunt large prints and drawings collection as the brunt legion of honor but this is a fairly large and complex and diverse collection other thing i need to make you aware of a different to what you have a painting gallery or even if you have a museum of contemporary art were keepers of costumes and at that point tries, objects, of different kinds, furniture and painting and drawing, etc. To keep and maintain those objects we need skills and also needs different storage amenity and temperatures to keep them photography at different temperatures it is a way to maintaining the culture archive of the achievement of humankind we display our special exhibitions and definitely only one thousand person of the collection is on display but a collection it all about being the brunt keeper even if cultural artifacts or of artwork that used for different exhibitions one the bay area we have those objects and wanted to do something and lends them to them but we do about 20 major art exhibitions a year at the legion of honor a lot of time are based on a core on the collection and moving forward in our program is to concept lists we really want to show the brunt strongholds of the institution and boys and girls club build on that ambitious but internationally Exhibition Program right now at the legion of honor very a celebrated show on 7 century french painting and recorded on that we hope youll have the possibility to visit it in the next couple of months one of the contemporary american artists of his generation and then benny the photographer for which will get his largesca largescale retrospective of his art i know you dont have time but see how far ahead were planning our Exhibition Program is quickly stitched together no, but requires planning and budgeting three to four years ahead so im just giving you a quick synopsis of the exhibitions of the legion of honor and early shawn and other sculpts turns and work from our collection of art 1906 and then f d young will open in april of next year a picture on the brunt sum of life on the history of the city during that particular time then smog really different happening at the same time in other galleries about the brunt marilyn projects from new zealand and from many mexican considerations is here then a show on precision our development of the 1920s ones last name the different and challenging evolution showing african objects again another show in africa and another show of missouonet the building i challenge for upkeep it is important for you to know because the buildings have owned by the brunt city so and this city money and locations help us to maintain those buildings to improve them to the way to preserve the collection within those institutions so we have done a different kind of arrest chief and work to give you as you may know any of those houses about all sorts of the brunt necessities to maintain the brunt buildings and someones o sometimes the brunt projects we have may is here we have a real issue right now because our whole system broken down and it is something that is challenging we dont have temperature control that is a risk to very valuable work we need the brunt citys report to replace the brunt exchange of honor but then, of course, the brunt notion of the museum is not solely a reapostrophe for artwork but all about outreach and education it is about coming together it is a community not sole a place to visit but a place that radiates and takes on tasks in schools it is about cultural and education of a different kind for example, the internet especially for Old School Well be completely prepared to concerts and performances of different kinds that kind of speak to different audience but then i think one of the question is supervisor peskin has raised is how do we do as a administrators and make sure that city assets are properly kept in this institution now i have to say this is one part i really feel confident the my name is performing at perfect amongst its peers and one of the proof of that is what we call the the American Association of basically like a selfimposed audit to the American Association of museum comes from time to time and basically checks how we keep and what our procedure that is the brunt same way that is Industry Standard we have evaluations continually amongst ourselves among the brunt museums to be on par with what is happening and theres a whole series of other elements that reilly make sure that the assets a properly managed and give you a quick overview the brunt departments taking care of different areas a quick synopsis and the staffing for the brunt staff theyre not solely there to produce exhibitions but really keepers of the collection keepers in this case of the city assets and here images of our conservatism department that certainly one in the brunt best in the country and wellequipped and show you some examples of kind of how we can keep and treat the artworks i have to say in my quick overview of the one and 26 objects in the collection almost everything the brunt city owns is a couple of arts within the foundation it is really one of the smallest seethsd so here youll see the brunt work in the conservatism labs and thats what ive spoke about beforehand different storage areas have different kind of efforts of maintaining this work so and here you see the brunt complexity of the documenting of artwork and basically a question of storage from puck you transport it to a special area then photograph it and dig its it and bring it back weve done that for 80 percent of our total collection that is fairly good the collection management again one and 26 thousand objects we get z hundred to one thousand loans has to do with with the brunt restaurant and Exhibition Program by one. 5 million visitors a year that requires a loan process and sending loans out to other major institutions about one hundred loans go out between one and one and 50 the ambassadors the strong collection here collections to have the Fine Art Museums a strong symbol in paris from us at the major shows i can only encourage the brunt city of San Francisco and its representatives to make use of that and i will be pleased and ive done it in frankford i know that sometimes the negotiations between the brunt city and other city about becoming sibling cities we can move that platform were representing the brunt cultural power within the this institution and within the city in general so the overview of the collection management and the acquisitions of bringing negative impact new work to the majority of the nations is financial but the parts though the money that is funded to the museum is only being used for other artworks coming in not other operational needs storage and lending and borrowing ive talked about the brunt transport and this is the transfer of the objects over the challenge with any institution youll find insurance kind of through the brunt city right now covers a kind of damages i dont know what the proper english word but 200 million so dont. Dont we have a lords of london policy on top of that. Insurance that covers busy our institutions bus the brunt Asian Art Museum and one more institution. But kind of i think. The in memoriam. Yes. Exactly but that is something that we might have to evaluate from time to time total expenses just again get an idea about it you kind of allocate how much staff time and you spend about 3. 3 million a year just for collection care. So whats really important for us on the other hand, prove that the brunt museum that very well respected and monitored by the brunt Government Agencies is near received 3 indemnity programs for the brunt last major check and balancetion through the u. S. Government indemnity this is basically, if i look at the brunt total insurance value it is over 2 billion a major figure and major help for kind of operating budget. Now acquisitions that is the commodity how much into the brunt collection and finally into the city holding and what is that follows the brunt American Association of Museum Guidelines it functions as a commodity so it is recommends gifts and that is prepared, of course, with the brunt different total departments within the institution. And director is that a committee of the board of the Fine Arts Museums of San Francisco or the corporation. It is a Foundation Board so and it is comprised of the scholars and other members of the transition of the comedy. I believe it was spoken to on the first hearing. Quicken acquisitions weve done our 200 and 70 in the fiscal year but almost one thousand nine hundred workers depended upon in the at the same time an idea of the donations. I will say one of the challenges as a lot of institutions is we have, of course, the brunt Collections Management Software and that is something that is developed over the course of years and given the brunt whole development of Software Area in general and the magnitude of our digital files the objects in particular this is a strong need for us to improve that particular software i mean, thats working and sound but that will require a significant amount of investment to kind of come to the next level of collection Management Software so i thin