realize a net gain in revenues -- from $521,000 to $1.2 million. that depends upon which options the pga tour and looks for holding the tournament at harding park. we also point out, there has been no economic analysis to date quantifying the economic benefits of holding the pga tournament tour events at harding park, including increased tourism and the resulting economic activity. we are economic activity. we are simply stating that there is no study documenting the precise amount of the benefits. on page 10 of our report, we estimate that the, as i stated, although we do estimate that there will be a net gain between those $500,000.10 $0.2 million, for the additional tournaments' to be held from

2013 through 2021, there are no assurances that these gains will be realized by the city. any loss to the fund made directly impact general funds in the city. first of all, approval is a matter for the board of supervisors, but we also recommend that you request the department to submit a written report to the budget finance committee at the conclusion of the tournament that they would hold at hardy park in order to report on the games, losses, or any measures that could be taken if a loss was reported. supervisor chu: thank you. if there are no questions from the committee, -- for the committee, let's open this up to public comment. i have two public comment cards.

if there are other members of the public of wish to speak, please lineup in the center aisle. >> good morning, supervisors. my name is tom clark, executive director of the events held here in the park. we have had a great relationship. phil and his team, we have learned a lot and, in long way. the golf course is in spectacular condition. rounds of golf continue to increase. as of today we are 12% above last year at this time. overall, gulf is on the upswing at harding park. the pga tour, really, having

events here at harding park has been fantastic, because it has, as phil mentioned, it is our largest international event for these four day events. as you move forward with charles schwab cup events, the champions tour that they mentioned, it will also continue with our pga tour events as well, as you can see on the proposed amendment. on behalf of the pga tour, we are looking forward to providing additional financial assistance on the first tee of san francisco, allowing us to showcase san francisco to millions of golf fans on the golf channel, nbc, and provide an impact for the city. supervisor chu: thank you. just a quick question for mr. clarke. one of the things that harvey

the budget analyst mentioned would be for you to perhaps share with us some of the economic benefits to the city larger than the tax revenue that comes in directly from fees. it would be interesting to understand the economic impacts in what they might be. offline, if you could share that information, that would be helpful. >> absolutely. thank you. >> my name is sandy tatum. i have been involved in the whole process of resuscitating and renovating harding park. in my 55 years in the city, i was satisfied that it was one of the most available, most effective assets the city could possibly have. i saw it turn into a patch of weeds. i could not bear the thought that that asset was literally going to go down the drain.

we were able to, one way or the other, resuscitate and renovate that golf course so that it stands today as a priceless asset. its value has two basic elements. one is as a recreational resource. gulf, as i have experienced it, as well as millions of others, is a priceless recreational asset. it is a life and cancer and extender. it is a fact that people who play golf live substantially longer than people who do not. and it has another very important factor, this renovation. it created a facility for a headquarters for the first tee program here in san francisco.

that program uses gulf and uses the attraction of learning to play golf to instill in these people, particularly these kids the core values that they are going to need to be effective, constructive human beings. what we have done with that program is we have gone into schools in visitation valleys, on to huge, and used playgrounds, and we have established satellite programs that are absolutely incredible. it has worked very effectively. 5000 kids in this city are getting the benefit of that development. thank you very much. supervisor chu: thank you. are there other members of the public at which to speak on this item? seeing no one, public comment is closed. colleagues, the item is before us. supervisor kim?

supervisor kim: i had some follow-up questions. i was happy to hear the pga is increasing the number tournaments' it wants to hold in san francisco. i understand, from talking to stafford art pd, there are kickups as we learn how to manage a golf course on par with tournament courses. it is good to see that in the future we project revenue funds on top of potential tourism and increased fees that may have at harding park. obviously, there is no study, perce, but from your perspective, what have you seen? >> we have seen a couple of things. as tom made note, we have seen

this year a 12% increase in the rounds being played, which means we are seeing the benefit of the extra attention out there. gulf generally dovetails with the economy. over the last few years it was down around the country. you are seeing what is happening in particular, where we are tracking quite well. more importantly, for the average city -- san franciscan who plays golf, they are able to enjoy a truly unique experience. it is very rare that anyone around the country has the ability to utilize a public golf course of this quality. harding has achieved that level of quality where we have had some of the greatest golfers in the world who have publicly talked about how fantastic the

golf course has become. i with the one to credit my staff. we have a variety of trades out there doing a fantastic job. they are very inspired and have done a fantastic job keeping this the jewel that it is. but the partnership with the tour that is not stated in any of the reports, it was part of the letter of the agreement attached to the master, which is that we were provided with free economic support. the pga has given us a full-time person to help us to learn better practices, keep the golf course where it is, and ultimately reduce maintenance costs. over time you will see as hosting these tournament more efficiently. the advantage of having more tournaments', one every couple of years, is that we will be able to keep the golf course at a level that is special for san

francisco to use year round. supervisor kim: what are the fees as in relation to other golf courses? is there a comparable private golf course? >> it ranges from $15 for a junior resident, up to $47 for a san francisco resident. senior play is $32 and on the weekend it is a bit more. $17 for a junior -- $21 for a junior. supervisor kim: those other fees at harding golf course? >> those are higher than lincoln in glen eagle, but significantly lower than a private golf course. supervisor kim: how much would it charge for a compatible course?

>> andy? [inaudible] >> [inaudible] we can certainly get that information for you. there are various extremes. but private golf courses are going to be significantly higher. more than a few hundred dollars to play a round of golf for a non-resident. many of the clubs have memberships that you pay up front for the privilege of playing golf. it is tougher to tease out a daily round. supervisor kim: i do not play golf. in glad that we have these affordable courses of this caliber. that it is one of the benefits of this.

by the way, i am a huge fan of the first tee program. i remember when it opened in that empty, concrete space, of which i think became better utilized with this investment. it is a great resource in that area. i know that at the time the principal was very excited to have this additional program in his school. i am glad to see that the investment will continue. supervisor chu: colleagues, is there a motion to send the item for board of recommendation? we have a motion to send forward with recommendations. done without objection. thank you. ok, item number eight, please. >> item #8. resolution authorizing the lease amendment with sixth street baldwin house, llc, of approximately 1,932 rentable square feet of ground space located at 72-6th street for the san francisco police department. supervisor chu: this item is

brought to us by the mayor and supervisor kim. supervisor kim, did you have any opening comments? supervisor kim: i know that bill barnes is here from the supervisor's office to speak on this item. i know that i spoke on this when i introduced it a couple of weeks ago at the full board. this has been a long coming from the city and redevelopment agency's 2/6 street and amid market in the market community. i know that we have tons of community support to have a substation on sixth street from a range of constituents, whether it is our tenants or new residence in the south of market wanting to make sure that the city is actually investing in public safety efforts, where we have seen a lot of crime. i think that this was a key portion of the redevelopment

plan. unfortunately, as we all know, the agency was dissolved at the end of last year, which was an unexpected challenge for us to take on. as is in harvey's report, the loan that was initially going to be used from redevelopment to the landlord of the site is no longer an option for us and we are looking for other ways to fund this. it is definitely a party of our office and the mayor's office, and i appreciate the mayor's office working diligently on the many funding gap issues. >> bill barnes, on behalf of the city administrator. in trying to figure out how to move this project forward in the wake of product development resolution, we have done a good job on behalf of the police

department in figuring out how to bring folks together. the lowest cost in both cases, the project can be delivered within a few months. how do we move this forward in the proposal before you? with that, i will turn it over to the city administrator. we hope that this proposal will meet with [unintelligible] >> thank you. good afternoon.

john updike, i am heartened to hear that i will hear i have a longer life as a golfer. that was wonderful news this morning. this item is an amendment to least less than 2000 square feet for a police substation. the board originally approved 50911, which authorized the initial lease that we are now amending before you today. construction of the project, as noted, was to be funded through the forgivable loan fund redevelopment agency. since the issues created challenges to staff, we went to work to analyze the scope of the improvements to the building, then worked with the landlord on amendments to the least to facilitate a change in how the project would be delivered, as well as to reduce leasing

expenses going forward. we had some additional challenges here. reducing the least amount in the first three years by 50% to just $14.49 per month on an annualized basis. that is fixed for the initial three years. rates for increases are set in limited using the consumer price index calculation. in multi-department team of consultants took the opportunity that we had to make adjustments to the scope of the improvement project. it has been refined to meet the needs of the police department. after some considerable value engineering we have arrived at a firm construction cost of

$775,000. half of that amount is related to the ballistic protection of the facility through the use of kevlar, glass, and other measures. one of the large costs is the mechanical commitment inducting. it has a public safety element to it to prevent access and tampering. a bit more complicated than in normal improvement you might find for normal office retail. we believe in scope changes from the time it was originally released until today. accounting for the difference in the price of the program, noted with in the report. sources for funds are a mixture of the police department's operating budget and real-estate operating savings achieved this fiscal year, accounting for roughly 85% of the cost before

you today. since the lease was previously approved and payments already anticipated, the item today simply reduces our commitment by $50,000 over three years. police amendment is also structured to allow for interior improvements. it permits occupancy of the facility by the police department. we anticipate that scheduled to result in a summer occupancy. there is flexibility built into it so that we can occupy immediately upon availability. as bill mentioned, we are joined by a host of folks to address these questions. supervisor chu: thank you very much.

why do we not go to the budget analyst report? >> madam chair, page 5 of the report, as mr. updike indicated, the proposed amended lease of a monthly base rent of 1449, a 15% reduction would be for the first three years. it was negotiated with the landlord because the city's general fund will now be paying for 775,000 tenant improvements for the police substation. as shown in table 2 on page 6 of our report, the total paid by the city on the sixth street house llc over the nine year term of the least is added to the options of exercise that were up to $297,000. we stayed -- stated on page 6 that we considered this matter to be a policy matter because

the lease now requires $775,000 to be paid by the city's general fund to construct the needed improvements to the substation, whereas as you know under the original lease, it was going to be paid for through sfra through forgivable loan, $500,000. supervisor chu: thank you. i had a few questions and i was hoping that staff would be able to respond to it. i think that, previously, when the item was approved before, the idea was that the improvements would be coming from redevelopment agencies to the amount of $500,000. now we are looking at a level that is significantly higher. we're looking at $775,000. not only that, it is coming from the general fund. can you speak to why this level has changed in the short period of time?

>> i think i am the person responsible for putting this out. redevelopment had asked for construction bids at that time. in the process of doing the biddingwork, subsequent to the board's approval with redevelopment updating procedures, it was similar to what we found here. in addition, there were additional scoping issues. there is an attachment 3 in your packet that shows the reduced cost of the project. as we move forward, it became clear that as we clarify the scope, there would be a bit of an increase. we do think that the increase is justified. the director of public works and the police department have signed off. the dissolution of redevelopment has brought unexpected costs in

challenges to the city. supervisor chu: with regards to the policing activity expected from the substation, this might be a police department question, but what is the intention for staffing this facility? many of us a look at the area of sixth street and understand that there is a need for more police presence in the area with additional resources. i do not think that any of us disagree with that. my understanding is that this substation acts like an administrative facility, where officers are going to complete reports and etc.. this is intended to allow the officers not to have to return to their main headquarters to fill out police reports. they can actually stay on the streets longer, of which i think we also all agreed with. my question is, is it in the best interests of the city to enter into this long-term lease,

pay $775,000 to upgrade this facility to create a substation? an administrative place. you might be able to accomplish this with technology for different protocols, pilots, or strategies' the police department could use to allow the officers to report back more efficiently rather than having to go back. >> supervisor, partially what you covered was the use in the space. the goal is two services on the street as much as possible. increased business presence, safety for the community.

to keep them on the street, for the beat officers walking down a hall of justice, doing follow-up investigations, other types of things, looking forward to 2014 in the public safety campus by at&t park, it just becomes -- the idea was to create a place where officers could go and do those follow-up investigations and administrative functions, creating a presence along the market corridor so that there would be officers coming and going at various times of the day. looking out two or three years, the public safety building. as far as a long-term lease goes mr. updike did a fabulous job negotiating a three-year

term with auctions afterwards. when the term is done in three years, there may be other technological solutions that can be employed and we can abandon the least. at this point, working with the director, they are committed to finding a platform that would work to provide the technology that i think all of us want. last week it was not there. doing those kinds of things, it would keep the presence in the street. i know the chief has been trying to find a solution, but once you find out the platform, it will still require some period of time to allow the officers in the street to do that. access in terms of standard for

encryption and wireless devices used by officers going back and forth, those are mandated in required by the state. supervisor chu: what is it about reporting? can an officer complete reports at the end of a shift? do they have to submit them immediately after an incident? why does it have to be done that way? >> some of them have to be reported immediately. they have to get into the state system and reported immediately. the sooner, the better. not just liability issues for san francisco, but certainly reporting for missing persons have to be reported, by law, within a very short time period. other reports can wait until the end of the watch. officers, if they go back to the

station after eight hours to complete reports, it may not be as effective and productive as we would like to be. there is also a sense that officers getting backed up on four or five reports, waiting until the end of the day to complete the mall before an officer goes home, sometimes the quality might suffer as they try to rush through their fifth or sixth report. so, there are several vintages of doing this. one, you never know what is following. suddenly you get stuck on something? the quality of the reports improves. it becomes more efficient if they can be done throughout the watch. supervisor chu: what is the strategy for staffing this substation? there is a question that i have about lack of clarity.

it is really, primarily, for the beat officers in the area to have a place to complete their reports and perhaps issue citations or other opportunities. and do you plan to having non- officer presence? is this a resource that people in the community will have? will the subspace be closed for part of the day? >> it will not close for the night, that is the intention at this point as a result of staffing. we are down approximately 200 officers. as staffing increases, their bill be re-evaluation of the ability to staff on a more regular basis, as technology allows. for the near term, there is no intention to staff it on a full- time basis.