rate per unit currently paid by dph for other similar hotel operations. we recommend you approve this resolution. supervisor avalos: thank you, mr. rose. if we could open this up for public comment. >> we have had a dream about leasing the land it is time you give us a grand then we could settle down in this city and town i know it is going to be on eddy street you are trying you are trying now i am glad we are going to lease some land. give us a grand and we can

settle down in this quiet town give it the best you got i think it is going to be on eddy street you are trying you are trying, budget committee now supervisor avalos: thank you very much. if there are no other members of the public that would like to comment, we will close public comment. move forward without objection. >> >> item 4. resolution authorizing the director of public works to execute an amendment to a professional construction management services agreement for the san francisco general hospital rebuild program from $8,000,000 to $16,400,000. >> good afternoon. my name is ron alameda, project manager for the seventh is good general hospital rebuild program. i have a short power point and some hard copies to hand out, if

he would likyou would like. we are seeking the approval to increase the construction management project to $16.4 million. supervisor avalos: is that microphone on? >> sorry, i will lead into it. we are seeking to increase the contract in order to continue to

support and add additional support to the rebuild program that has been advancing nicely over the last couple of years. we are also adding support to end adjusted generator project, which you may recall has been absorptive the project recently. this will also allow us to continue our current forecast of 27% lbe participation, as opposed to the contract goal of 28 -- 14%. two years ago, by way of rfq, jacobs engineering was initiated into the sfgh rebuild team, including the design team, executive andof construction manager. jacob has been a great asset to

the team. so much so that we continue to tap him in additional capacity is. as we progressed and grew into a team, the roles and responsibilities of jacobs team members have expanded. we had created in 2007, began to formulate the delivery method of this project. what we based the original contract on was participation by jacobs on a more periodic validation rule. as we move forward, we found the need to continue to use more in a full-time capacity for cost and schedule of validation, as well as adding a $20 million emergency generator project.

you may recall, that is a predecessor project which we began to realize was going to impact our schedules, in so much that it was trending not to be complete in time for us to do the rebuild. so we melded the two projects together and we were able to preserve the schedule by way of melding those two projects. supervisor avalos: i was told a big part of the delay was getting permiting through sacramento and there was still lives on the part of the contractor, but there was a backlog, and furloughs in sacramento led to delays. is that your understanding? >> there are a number of things in play. important on both projects is the existence of furloughs. we have experienced delays in

design and review, permitting of all the project increments included in the emergency generator. i am happy to announce that we have the permit in hand as of two weeks ago. so we're moving forward with the emergency generator project. in terms of the rebuilt, we have parsed it up such that there are a building permits required between the city, seven from the state. we have five out of eight in hand. now we are focusing on the remaining three, which are advancing as planned, but the worry of furloughs continues to haunt us. another element that touched on the emergency generator is, it was a predecessor project and it took time to identify funding and initiate the project. we were getting pushed even before we went to oshpod.

that is why i suggested we meld the two and do the efforts concurrently. it is a bit of both. at any rate, between 2010 and 2008., we have monitored our use of jacobs and have readjusted in light of these forces. that is what is driving the increase in contract. i do want to underscore, the over all approved budget is sufficient to take care of this increase. so we are not looking for any additional funds, just contract and capacity, since we are over the $10 million threshold.

when we did this forecast, we also looked at what was happening in the market and benchmarks similar hospital projects. i have listed a number of similar projects. they have similar needs. supervisor elsbernd: i have a question, a more general principle that i am concerned about. this chart brings it forward. we have webcor as our general contractor, and now we have someone overseeing them. and then we have you and other city employees overseeing everyone else. nowhere on this chart is laguna honda. when we did that, we had turner. i do not remember having somebody other than city staff keeping an eye on turner. why do we need yet another layer of people watching?

>> there was a three-fold balance developed. again, i am committed to having a third-party cost estimates in this schedule review. that is principally what they were brought in for. as well as adding the generator , which was not even contemplated in 2008. at laguna honda, i know their makeup and mix was a little bit different. it evolved over time. i think they went in as a

design-build and then migrated into more of a cmgc model. it is kind of the same but different. where i was trying to drive the recent benchmarking is, we are continuing -- one, this is a common function in the makeup of the team. to that end, we have continued to drive toward the lower end of the ratio. with the increase, we have a ratio of 2.24%, ratio fee versus construction. it is continuing to be on the lower end of the spectrum. my last slide, in summary, we

did commit to balance out the city staff as well as consulting staff. this diagram illustrates the makeup of the different roles for construction management. simply put, the blue boxes are city staff, graieen, jacobs. each stream of activity is coupled with city staff, their skill sets, as well as jacobs' expertise in these projects. it would meet our commitment of expanding cities that as well. in summary, we have built a strong team of designers, contractors, construction managers, and panting the program at an aggressive pace to accomplish much. jacobs has been instrumental in

rounding out the team with talent, experience, and data unavailable from other sectors. as we said earlier, we have balanced out the construction management with city employees, that of consultants, needing to grow the broader experience. with that, i will take questions. supervisor elsbernd: i have one for you. a source of funds, dollars to be used to pay for this increase, are what? could you explain this to me? revenue from some sort of police? -- of lease? >> members of the committee, and

these are the san francisco general obligation bond funds as originally authorized. >> to address this need, we had originally had a budget item. we are still looking at the soft costs. we are also tapping the lease finance funds that came to. the emergency generator projects. yes, we have identified savings on the construction side of the balance of the budget, but we

are not tapping that to take care of this. supervisor elsbernd: what i am reading from the report is that you are using $1.2 million from the emergency generator project and $7.2 million in cost savings. is that not accurate? again, the more fundamental point, and this is based on the city's experience with laguna honda, one of the ways that we sold this to the electorate, the general hospital, we did all kinds of preconstruction work, we learned our lessons with laguna honda for failing to do that. hopefully, with general, we have done our due diligence. we are not even one year into the project and we have already found that -- we have found $60

million in savings? what does that say about our original cost estimates? >> the market shifted on us considerably. supervisor elsbernd: so it is all market? >> there are a number of factors. the market is favorable right now. we are diligently reviewing all the models. we are incrementally developing -- we did the original budget of of schematic drawings, which is further than other projects have sprung up in terms of depth of information. as we progressed to the design element and construction documents in permitting, we are always revisiting the budget, revisiting how we are utilizing team members to try to optimize and recognize where things are running long, where things are running short. supervisor elsbernd: remind me, have we already issued the total

bonds, are we doing it in pieces? >> in pieces. there have been two bond sales. we are assessing the size and timing of the third bond sale. that is some time next year. supervisor elsbernd: so even though the voters have authorized us to issue bonds up to a certain number, if the market continues to perform as it currently is, there is a chance we may not even need to go to that number? >> it is a question of timing. we are looking at buying out the entire job by next summer and then having a better idea where it will come in. then there are some other costs as well. we will have a firmer no. then, to see where the project is trending. supervisor elsbernd: summer of 2011, ok. supervisor avalos: mr. rose, anything else you want to share? >> we did, of course, raise a

question as to why this contract is going up 105%, from $8 million to $16.4 million. on the top of page five of our report, we state that we received a memorandum on page one. thethat the justification pertaining to what they referred to as changed physicians is conditions. that is for the requested $8.4 million including emergency generator projects at the san francisco general hospital as well as other conditions that they have put in writing. we also raised the question of

why not conduct a new competitive process. on page 4-5 the patient -- the statement from mr. alameda in his memorandum attachment stated that it would be detrimental to the project given the terms of synergy that would be lost and the impact in scheduling. the additional work impact is best addressed with jacobs as they have become a valuable member of the research team with the data that is to attributable to the savings that we just referenced in the project. for those reasons the responses to our questions, we recommend approval of this resolution. supervisor avalos: thank you,

mr. rose. we can go on to public comment. >> budget and finance committee. ♪ i was filled with despair my dreams turned to ashes now they are gone and i looked at general hospital it was barren and gross without a good hospital in hell i have nothing at all without a good building in good health i have nothing without a good hospital building i have nothing at all you might have conquered the world you might have millions of dollars without a good building and good health

you might have nothing nothing at all ♪ please consider the item. supervisor avalos: ok. any other members of the public? of we will close public comment. colleagues? supervisor mirkarimi: motion. supervisor avalos: taken without objection. mr. young, if you could please call items 5 and 6. >> item #5. resolution approving amendment no. 1 to domestic terminals food and beverage lease no. 03-0178 with lori's diner international; no. 03-0179 with andale airports; no. 03-0181 with meyers holdings, llc; and no. 03-0188 with h. young enterprises, and the city and county of san francisco, by and through its airport commission. item no. 6.

resolution approving the terminal 2 specialty store lease between melshire dfw, l.p. dba natalie's candy jar, and the city and county of san francisco, acting by and through its airport commission. supervisor avalos: welcome. >> thank you. good afternoon. cathy wagner with the san francisco international airport. i will start with item number five, the first modification to four leases allowing for the determination of four security food court locations [listsl stores] in the first terminal. sales have dropped 20% as a result in changes of tsa regulations and things that you can bring through the security

checkpoint that have impacted customer and passenger behavior pretty significantly. the modification would allow for determination that these locations, reducing the food and beverage square footage at the airport by 3500 square feet. the budget analyst has estimated that the loss in revenue is around $400,000 per year. our concessions staff has looked at this and believes strongly that the majority of that money would simply be shifted from pre-security to post-security, more than made up for in the budget with our opening of the second terminal and all of the new food and beverage concessions that will begin their in the spring of 2011. i would be happy to answer any specific questions you might have.

supervisor avalos: thank you. that was both items? >> no. item number six? speaking of turmoil to -- terminal two, this is the last retail and beverage concession program you will approve in terminal two. they will operate a candy concession in the second terminal for approximately 928 square feet. the lease contains a guarantee of $141,000 or a structured percentage of rent based on gross revenues, whichever is greater. this location has already been through the finance committee and the board and was approved in 2010 as charles chocolates. however, the operator was not able to secure financing. the new lease before you would

replace that lease and is the result of a new competitive bid process. supervisor avalos: thank you. mr. rose? >> on item 5, as stated, we had estimated reduce revenues of $418,000. the department states that it will be made up to the tune of about 70%. in any event, because of the airport's break-even policy, and will not have any direct fiscal impact on the airport's. revenues needed will come from the airlines. we recommend approval of that resolution. under item #6 there was a process where nosirdfw had the highest annual minimum guaranteed to be paid if the

gross percentage of sales and we recommend approval of the resolution. supervisor avalos: thank you. we can open these up for public comment. items five and six. >> ♪ lori's diner where are you now fly away from here i do not think so i think that you are here taking our hunger away think of the diner and give it a try. i know that they would like it that way a diner is a friend of a friend who is a friend through the 50's and that is the kind of place that is. they will be there for you. give the diner a try in the

airport. i know that they would wanted that way. ♪ supervisor avalos: seeing no one else, we will close public comment. we have a motion to approve these items with recommendations moving forward? please call item no. 7. and item number 8. >> item #7. ordinance authorizing the san francisco planning department to accept and expend a grant in the amount of $250,000 from the california department of transportation, division of transportation planning for the fy 2010-2011 environmental justice grant for the chinatown broadway streetscape improvement design plan, and amending ordinance no. 191-10 (annual salary ordinance, fy2010-2011) to reflect the addition of one (1) limited duration job class 5293 planner iv, grant funded position (0.06 fte), in the planning department. item #8. ordinance authorizing the san francisco planning department to accept and expend a grant in the

amount of $250,000 from the california department of transportation, division of transportation planning, for the caltrans community-based transportation grant for the central corridor growth strategy and design plan, and amending ordinance no. 191-10 (annual salary ordinance, fy2010-2011) to reflect the addition of one (1) limited duration job class 5293 planner iv, grant funded position (0.15 fte), in the planning department. >> good morning, my name is tom desanta with of the planning department. amending the established. of a limited term grant funding, funding from the grant will be used to develop a vision for the subway rail corridor with an outcome that will produce a growth strategy and design plan that coordinate's support land

uses with land use recommendations, urban design guidelines, and enhance public rail. it requires a $27,000 match being per -- provided through the municipal transit agency. item #8 post board approval for accepting and spending grants that amend an established 0.06 limited term grant fund physician. the planning department applied for this grant in partnership with community development centers. funding for the grant will be used to develop a streetscape improvements designed plan for revitalization of the former freeway corridor that was knocked down. the goal of the plan is to develop and design commercial corridors that encourage job, housing, transportation linkage,

fostering and modeling on merchants that are under- represented in transportation planning with developed community partnerships in alternative modes to reduce carbon footprints and greenhouse gas emissions. this grant has a matching requirement of 16,000 coming from the planning department and the chinatown committee development center and $33,000 from the mta. staff and planning of parliament are here to answer any questions you might have. supervisor avalos: thank you for the presentation. public comment? items 7 and 8. >> ♪ i see you walking down a street scape in chinatown