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 bidding work, 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. supervisor chu: if that is the case, we are practically paying for a fancy administrative building for people to do it -- to do their reports. >> i would not characterize it that way. i've said this is a place for officers to conduct reports and create a presence on the street to provide public safety supervisor chu: board -- safety. supervisor chu: regarding the place, did we have alternatives? other strategies where if we had invested in them it might be a single facility? >> when the search began some time ago, led by redevelopment, there was an analysis done of public assets and whether those

could afford us the opportunity. none were as strategically located like this, at the key corner of influence. nor did they have the right sizing or timing of availability is. it would have required similar capital investments. the focus was then moved to privately owned space, resolved to be the best opportunity for a good lease that was favorable to the city, with reasonable conditions in terms of improvements. supervisor chu: we may not have had a city facility at that location, but did we have one close by that would have still been able to accommodate the officers? >> unfortunately, not with a street presence. we may have been able to find a location in an office building in an upper floor, but then you do not get the synergy that you have with a store from vacation

and benefits that that brings to the neighborhood. supervisor chu: thank you. supervisor avalos? supervisor avalos: where do we have existing substations in san francisco? what we find in terms of how successful they are on the street? >> there are two facilities with similar store fronts on broad street and -- i cannot think of the other, but mostly public housing is where they have been used. they have been very successful because the officers come and go. there is a place where they come and go. because of the random nature of their coming and going, there is a greater sense of public safety in the surrounding area. it gives the chance to sit down and then go back out in the street. the officers coming and going, it becomes that familiarity.

creating a presence in the area that the chief is committed to. supervisor avalos: what is happening there right now? >> same kind of thing. in about regard? -- in what regard? supervisor avalos: is a closed? >> officers are going in there. supervisor avalos: from that experience, how does that inform -- i can see the real point of having a substation on sixth street, and i can see why the community would want to have one, especially those folks who live there up and down the corridor and who have experienced the danger there. >> our belief is that the impact on sixth street will be even greater. there is more foot traffic, more pedestrian traffic.

there is greater motor vehicle traffic, going up and down. it is all about creating a presence that makes the community develop a perception of safety. supervisor avalos: most of the time i am on broad street, i do not see the presence of officers. i would like to see that we are creating a substation with general fund dollars where we actually do see the presence that will provide a meaningful sense of safety. >> again, there are many more beat officers in the mid market core area. >> thank you. >> supervisor kim? supervisor kim: i know that

there are concerns about the cost of this project and the use of federal funds. looking at some of the items in the plan, i was hoping someone could walk us through why these are necessary for an administrative office. is it as simple as the panels in the basement ceiling? could someone just walk us through a low bid by these can become part of the administrative office. >> certainly. this was a process of getting a staff of real-estate police and others in a room look at but we were proposing and where could be made so, facilities were

scaled down considerably. you just heard how this facility will be used. in that regard, and those other things were scaled out conceivably and both of the cost in you see in the red sheep relate his safety of the facility. i am a hardening in terms of ballistic projection. -- protection. that is the lion's share. an item that we have to be realistic about. the location that could be a

target for bad behavior. it could be expensive. dtw affected a great job in the alternatives to get to a certain ballistic level that is set up to national standards. we have some standards to meet to -- that drove the kind of kevlar but the other biggest item was mechanical equipment, induction, and the protection of that here, we need to be sure that the air flow was protected and i appreciate that.

and in the future i hope we can expand of what the substation is a about -- could read occasionally have desk times? office times to be there for the community balance of neighborhoods could know how to be stronger and safer? public safety as well, for other uses that are a benefit to the community, on top of having police officers in an increased police presence. supervisor chu: thank you. mr. goldberg, can i ask -- is there something i am missing with these tides of uses? and it would require the officers to be cut -- to be kept closer to their beats.

as doing that, they would have to stay in the street to be better visible supervisor chu: chu what does that -- better. supervisor chu: is that a function? visibility? >> you could get them off the street in inclement weather. but it depends on the circumstances, how close they are to the substation in a place where they're trying to do and we would be used for office type functions and we have all the kinds of things that might be a

part of the office returning to the station. >> >> try to do that. it was a mobile home. >> can you speak to that experience? >> the van is that when it is plot to their, you cannot be his and this is really for emergencies or special moment

all those kinds of things that bill be put into the station. supervisor chu: is there a reason why we would not want to continue purses this investment? that is what i am asking. >> the reason he would now want you that and throughout rest of the city. and if you have a van and throw in a function to be like a substation, we would have to make this level of investment $705,000. we are currently looking at technology to address these issues and understand if there is something that did the work

in the interim. -- >> in was used as a tristate present. to a degree, we and a two or three year commitment to parking the van there is not something you probably wish to pursue. supervisor chu: is there some reason it is not secure, besides the fact it is out of service somewhere else? >> it was parked there, but the issue did not move it. the issue was directed to be utilized as a command post for emergencies and other special events.