>> welcome to the july 18th meeting of the budget and finance subcommittee. items acted upon today will appear on the july 24th board of

supervisors agenda unless otherwise stated. o7y&q>> please call item number. >> the ordinance appropriating $155 million of certificates of participation proceeds for the department of war memorial in fiscal year 2011-2012. >> thank you so much. for this item, we have the project manager. >> thank you, good afternoon. we are before you today to request the approval of the appropriation of the last amount of funding/#z upgrade and improvements project. that is a really exciting thing to say to you today.

i do have a brief power point. i will walk you through it one more time. of course, we are talking about the veterans building which is across the street on van ness ave. this is the home of a number of very historic of fenc events in. history. we have a number of current programs that go on this building. i importantly, the theater which has over 300 performances each year. the green room host about 200 events each year. we currently have a temporary city offices on the third and fourth floor.

the building has a large number of deficiencies. there is a lack of a fire alarm system and sprinkler system on the entire first through third floors. we have an aging building system. they are dated 1917. our building systems of electrical and mechanical are an adequate for today's activities. the project that we are undertaking certainly first and foremost is the seismic earthquake and seismic damage repair. we will also be materials mitigation, accessibility of grades, code- mandated upgrades, and replacement of water, piping, and drinking water systems.

the war memorial will be making upgrades to all of the veteran'' offices and the meeting room. we will be expanding the backstage area and making improvements to the stage rigging and also updating kitchen facilities for the green room. we do have a private partner in this project, the san francisco opera, which would be making an investment. they will be constructing two new facilities on the fourth floor of the veterans building that will be used by the opera and which will be available to other parts organizations six months of the year and they will be managed by the war memorial. we have a partner with the arts commission his plan is to move

their offices tuesday veterans building, expand the gallery, and provide new storage for the art collection. >> thank you, sorry to interrupt. it just a question about the opera. i know that they're making major investments in the facilities that you just described. they're also using the heater, the piping system, the water system. the funds they are raising, are they covering those within the building? >> there are $15-20 million in improvement. we run the service is up to the fourth floor. their cost takes over from there. >> got it, thank you. >> on the sources of funds, certainly, we have the

sophisticates of for dissipation which were approved last july providing 132.4 million for this project. the war memorial will be providing a total of $6.3 million which includes some appropriated capital funds and a gift funds. this is a charitable trust department and we do have a gift fund. we are anticipating financial contributions from the arts commission of up to $1 million. , as you can see, the hard costs or the construction costs are currently estimated at $102 million. we then have our soft costs for fees, projects, all of the design process, architectural services, commercial paper, accrued interest, and

relocation for the total funds that come to us of $132.4 million. >> just a quick question. in our budget deliberations, there was about a billion dollars put into the relocation of the law library and then in this protected uses, there is another million to relocate existing buildings. i am wondering if this is to cover the other tenants in that facility. >> i cannot answer that question. i was not aware that you had a perforated additional funds. >> the mayor's budget office. >> i am happy to talk with the understanding is that this is not a duplicate, the million dollars is appropriated in 13,

14 budget in associated with additional costs related to improvements for the law library relocation. >> this is for other tenants then? >> that is my understanding. >> continuing on the use of funds,ó('s the 6.3 million at e war memorial fund will fund the those additional improvements that are not covered including a the theater, the veterans room, and the green room and then we have the arts commission and the opera fund for their tenant improvement portion of the project. finally, we are well under way. these will be starting the construction documents today in august. we are planning to have construction began in july 1st,

2013. it will be a two-year construction time. >> do you have any questions, our project manager and i are happy to answer this. >> i do have one question in the analyst report. this talks about how the project is supposed to be floated with the commercial paper in the initial stage and then later is taken out with the issuance which is anticipated by the public finance department, december, 2012. this is a question perhaps for anthony. this will not be completed until 2015. >> good afternoon, members of the budget and finance committee.

this is for the financing building. this was the largest construction contract and the needs for funds. we will monitor the progress. for now, our assumption is that this will be issued in december, 2012. >> the intention was not to use the rolling paper program to fund the construction project. >> if you recall, the board approved the commercial paper program of 150 million. we have the capacity for 150 million with the letters that

were provided. there would be not enough commercial paper authority to that are using the project. >> the capacity is not enough to do that? >> not with this construction. >> do you think that they would come back to increase the size of the commercial paper program? >> i justú the current tenants for the war memorial building. my understanding is that the staff of the war memorial, the san francisco opera will have some when they return. i am curious as to what the plan is for the other tenants.

the law library is a separate issue. is there going to continue to be a meeting space for the department of the environment now that they have new dedicated space of 1445 market? i am most curious about the2s75 office exhibit and meeting space for the san francisco post of the american legion and the plan there. >> i will defer your question on the apartment to the real estate department. i know he has been working with them and the mayor's office on disability which currently occupies space in the veterans building, with regard to the american legion post, which are trust beneficiaries, we are planning on providing temporary relocation space for the office and meeting activities. we will be providing temporary 4g their veterans trophy

room. it is plan that those will go into storage and we have been working with the real estate department on identifying appropriate space. >> what is the plan when the war memorial reopens? >> they will have upgraded and new office space and meeting rooms and of course the veterans trophy room. >> so, they will stay new -- they will still continue to have exhibit space? >> absolutely. >> will there be a reduction in the future of that space? >> not in the exhibit space. there will be a reduction in total square footage that they currently occupy right now. instead of having nine meeting rooms, they will have seven. it will have more office areas but they will not be so generous in space.

>> so, they will have more office area. >> more office workstation areas. right now, some of the offices v that is for one desk. we are actually providing more workstations but not in such a generous area. >> ok, so this will be reducedd. this is an anticipated increase in staff? >> no, in fact, they have no staff. these are desks that are used by members of the american legion post and they are not there necessarily every day, they may come once or twice a week or maybe every other week but each post has a desk and then some of them have two desks

and they also provide some desks for the vfw or other veterans' organizations. >> what will the additional tasks to be used by or used for? >> i cannot answer that. we did work in conjunction with their office on the number of workstations they said they needed. >> the next was on the exhibit space. our offices have gone so many e- mails about this issue. will there be a reduction of the current exhibit space? >> no, it will be the exact same space. >> so, perhaps a concern mainly is in the two years of relocation that they will not be able to showcase the trophies because they will be in storage. >> that's right. >> ok. >> that's very helpful. >> the mayor's office on

disability. they are moving to the same building if i'm remembering that correctly. >> the mayor's office of disability in the approved budget for the general services agency, inclusive was an anticipated increase in their rental expense. this assumes a made calendar year moved to a new space. the actual identified space has not been formally determined yet. that will actually be a lease agreement that will come before you for recommendation to the full board in the future. we do have a preferred site and we are negotiating the terms of that new lease for the mayor's office on disabilities. with respect to the department of environment. in the item approved 455 market street, that consolidates their

space from 11 growth as well from the war memorial and they will not have any spaces outside of the footprint and inclusive in their adopted budget are the relocation expenses for the move anticipated in the coming months. >> thank you so much. thank you. >> thank you for your questions. why don't we go to the budget analyst report? >> thanks. madame chair, members of the committee, on page 5 of our report, we show the budget for the total project amount of $170 million which is shown on table two on page 5 on page four. we show the uses of the supplemental for just 155 million of that 7 million. that is in table 1 of page 4. we recommend that you amend this to have fiscal year 2002, 1112,

with fiscal year 2012, 13. >> thank you. why don't we open this up for public comment? are the members of the public that wish to speak on this item? >> [singing] in the summer of 2012, you gave a budget to the war memorial. there was a time they needed the budget the time you drove the budget down to them. they will remember you for that. the time they drove the budget down and all the bells were ringing >> are there any other members of the public that wish to comment?

seeing none, public comment is closed. >> just a motion to except the recommendations and to move forward with recommendations. >> we have accepted the recommendation to move forward. please make copies of that this is timely scheduled for tuesday's board meeting. >> item number 80, resolution approving the food and beverage lease number03-0185.