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Mr. Fialho noted there were several other components in the presentation that would address her question. Staff had also attempted to identify in the staff report costs that were important from an operational standpoint beginning with the area of soft costs, which are associated with the start up of the project, and the figures the project consultants have submitted to Council are pure capital costs. Soft costs consist of items such as office computers and office furniture and because most of the equipment is being constructed as part of the project, items such as office computers and furniture are not and staff estimated these costs to be approximately $9,091 , which are items that would have to be budgeted as part of the operating budget. He noted improvements to Lions Wayside Park were mentioned at the workshop. He reminded Council that the Downtown Trails Master Plan eventually contemplated having Lions Wayside Park improved. He believed the proposed design for the improvements to Lions Wayside Park complimented the Firehouse and the cost for this project is roughly estimated at $1.5 million dollars, which he would consider to be basic improvements including grading, undergrounding the existing drainage channel, irrigation, and turf seeding, in order to create grass spaces and simple paving surfaces to draw the connection between the Park and the Firehouse. The estimate did not include costs related to the relocation and improvement of the Chan Henderson Bandstand, parking, actual acquisition of the Transportation Corridor, etc. He noted that funds have been set aside for the acquisition of the Corridor and staff is in active negotiations and discussions with the County. As part of the 2005-2006 operating budget, staff did not contemplate in the cash flow analysis the addition of any new facilities; staff has attempted to estimate the operating cost associated with the Firehouse Arts Center which would total approximately $300,000 annually and include staffing, which would primarily be temporary in nature, and day-to-day equipment and operating expenses that are typically a part of a facility's activities. The $300,000 figure does not include any City related overhead, facility maintenance, or replacement funds for equipment that would be purchased for the use of this facility. There were some general programming costs associated with the Art Gallery estimated between $45,000 to $75,000 per year. He believed Council should generally estimate the total cost of operations, excluding the items mentioned previously, at approximately $400,000. He mentioned that agency permit fees, traffic impact fees, public facility fees, and plan check fees are included in this cost and funding for these types of fees would need to be set aside; the cost of which is roughly estimated at $200,000. He mentioned that the cost estimates provided this evening did not include any construction contingencies; however, the cost estimates included a 10 percent contingency for design costs only. Staff believed this was an achievable project both from a capital and operating perspective and it attempted to break out the cost of the facility in such a way that it would allow Council the opportunity to proceed. Staff also attempted to provide a road map for the City as well as the cultural arts groups so that it could initiate and proceed with its fund raising activities which would also allow the project to be packaged and designed in a such a way that as November 2006 approaches, if Council believed there was sufficient revenue to build the entire project, it could do so, or if it chose for an incremental approach to the construction and only build the shell and the theater, it could so as well. Staff was asking Council whether it generally supported the concept of a phased design approach with the ultimate decision as to whether or not it bids the entire project, or just a phased project to be made in the early fall timeframe of this year. Greg Reznick, President of the Pleasanton Cultural Arts Foundation, provided an update regarding the Foundation's fund raising efforts. He said the Foundation is in the early stages of a major campaign and has hired a professional firm to assist the Foundation in accessing, strategizing and planning its fundraising efforts over a period of time. The Foundation is currently working on community outreach in a variety of ways including contacting each Pleasanton City Council Minutes 17 01/17/06