GRADES AND SALARIES FOR NEW POSITIONS

Mr. NATCHER. We would like for you to explain to the committee the grades and salaries for these particular positions.

Mr. MCCALLISTER. The first position is a realty officer, grade-14, the Chief of the Division. He will be a man experienced and qualified as a professional appraiser as well as one with background in administration and supervision of personnel in this field.

The two GS-11 appraisers will be used for the review and verification of the fee appraisals submitted by our contract appraisers.

We employ from a panel of about 20 appraisers and most of the best, or the best, appraisers in the city. We obtain very detailed and documented appraisals from them and some of them are quite complicated as is all city work.

PROPERTY VALUES

Property values vary according to location. One I would like to show is the case of a school where one can be more selective as to price. However, once you start a highway, you must keep going and to get into the Foggy Bottom area, we have gone up as high as $47 a square foot. When we are spending money like that, you can see what happens.

We have just made an offer for a filling station at 19th and New York Avenue of $526,000. The filling station was not worth anything but the land is.

In Foggy Bottom, we have spent some $9 million and we are using the best men in town. We are going to court for a great deal of this expensive property. The same people come in as expert witnesses and in the case of one trial, concerning Foggy Bottom, it lasted 2 weeks.

ADDITIONAL POSITIONS CONSIDERED IN SUPPLEMENTAL

Mr. NATCHER. Are these positions a part of the supplemental? Were they considered in the supplemental?

Mr. LowE. Yes, Mr. Chairman. They are part of the second supplemental and have been allowed by the Senate.

Mr. NATCHER. As I understand it, the five are a part of the supplemental at the present time which is in conference, is that correct? Mr. LowE. That is correct, Mr. Chairman.

Mr. NATCHER. Proceed.

Mr. McCALLISTER. These appraisers will work, as I said, on the review of the appraisals and in addition they will be utilized in effecting and improving our public relations with the firms and families who own and occupy the property we are taking. This is a subject of great concern to the Commissioners and we are trying to improve our public relations and trying to improve the conditions for those dislocated or for those who must be relocated due to the construction of this big highway program.

CONTRACTUAL SERVICES AND SUPPLIES

Mr. NATCHER. You have another item on page 2-10, Contractual Services and Supplies. It is a small item of $1,565 and why is this necessary?

Mr. McCALLISTER. This is for the usual items of purchase, such as office equipment and supplies. We will need two more typewriters and several desks and the $1,565 is for that purpose; this is to purchase the necessary supplies that go with more employees, as well as more furniture, two electrical typewriters.

BUDGET AMENDMENT

Mr. NATCHER. Mr. Lowe, at this point, explain the amendment to the committee which was submitted subsequent to the regular budget. Mr. Lowe. Mr. Chairman, this amendment is for the sole purpose of converting a very large office we have for our Public Assistance Division of the Welfare Department over to an air-conditioned facility. At the time we moved in, we were unable to envision getting air conditioning and we thought it would be more comfortable than it is. It is a converted warehouse and it is practically unbearable there in the summer, so we have been negotiating with the owner of the property. If we go to a long-term lease with him, he will fully air condition the property for the additional rental of $14,000 for the last 3 months of the forthcoming fiscal year and $55,000 for each full fiscal year thereafter.

This does require a language change giving us authority to enter into a long-term lease. This committee previously gave us a language change on this.

Mr. NATCHER. Mr. Lowe, off the record.

(Discussion off the record.)

Mr. LowE. In 1959, the appropriation act increased our authority from 1 year to 5 years, and since that time General Services Administration has gone to a 20-year basis on their leases. It has put us in a position where we are just incapable of getting office space here in the city and that is our dilemma, sir. The property is miserable and sorely in need of air conditioning. As far as the owner is concerned, the decision must be made in the next few months in order for him to order the equipment and get it installed even for the summer of 1963.

BUILDING TO BE AIR CONDITIONED

Mr. NATCHER. What is the space involved here?

You have an overall request of $55,000 annually for the air-conditioning benefits to be received, but what space is involved?

Mr. McCALLISTER. This is a very large, two-story warehouse at 1291 Taylor Street NW. It presently houses some 580 employees and the Public Assistance and the Child Welfare Division of the Department of Public Welfare.

We rented this building several years ago. It was brand new and completely vacant. It was improved and modified with the installation of lighting, acoustical ceilings, and suitable and adequate toilet facilities and so forth.

Mr. NATCHER. What is the square footage?

Mr. McCALLISTER. 73,000 square feet in two stories.

RENTAL COST

Mr. NATCHER. What is the total rental paid for the building at the present time?

Mr. McCALLISTER. $197,000.

We have a very good rental in that we had this building including heating and light at $2.50 a foot. This building was a warehouse and, as a result, it had a very large floor space. The windows are only in certain sections of the building and they are up rather high. Our engineers have been in there and they know precisely what the problem is, and the price will go up. We have a 5-year lease which expires in 1965 and we will renegotiate at $3.25 and then we will go from 1965 to 1975 for about $4 or $3.75. We will still have a very good price for this operation.

BREAKDOWN ON RENTAL SPACE AND COST

Mr. NATCHER. Mr. Lowe, at this point in the record we would like for you to submit a document showing the rental space, the lease, the square footage, and the amounts paid at the present time by the District of Columbia.

Mr. LowE. We have that, Mr. Chairman, and we will provide it. (The document follows:)