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HomeMy WebLinkAbout1998-05-26 City Council (9)TO: City City of Palo Alto Manager’s Report, HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE SERVICES DATE:MAY 26, 1998 CMR:246:98 SUBJECT:AMENDMENT NO. 1 TO LEASE BETWEEN CITY OF PALO ALTO AND FRIENDS OF THE CHILDREN’S THEATRE FOR PHASE 2 OF THE PROJECT TO IMPROVE THE THEATRE RECOMMENDATION Staff recommends that Council: 1) a~pprove the attached Amendment No. 1 to the lease between the City of Palo Alto and the Friends of the Children’s Theatre (Friends) to provide for a gitt of additional improvements to the Theatre; and 2) waive any fees required under the Municipal Fee Schedule, as part of the City’s contribution to the public/private partnership. The improvements consist of the installation of additional air conditioning and the refurbishment of the auditorium seats and floor. BACKGROUND On July 22,1991, Council approved the Preliminary Agreement granting options to lease to the Friends for its development and gitt to the City of improvements (Phase 1 and 2) to improve the Children’s Theatre. Phase 1 of the project, consisting of the installation of air conditioning in the auditorium only and the addition of a Theatre library, was completed and accepted by the City on April 16, 1993. The lease for Phase 2 of the project, the addition of an outdoor stage and production area adjacent to the theater, commenced in February 1997, and construction of the project is nearly complete. DISCUSSION In December 1997, the Friends received a grant in the amount of $150,000 from The David and Lucille Packard Foundation for the purpose of installing air conditioning throughout the remainder of the Theatre and refiarbishing the seats; and refinishing the floor in the Theatre auditorium. To provide for the Friends’ gift to the City of these additional Theatre renovations and upgrades, it is necessary to amend the lease for improvements. CMR:246:98 Page 1 of 3 Under the existing lease, the Friends’ improvement project is limited to the outdoor stage and production area as shown on the development plans approved by the City under the Preliminary Agreement (option to lease). The attached amendment expands the improvement project to include the installation of the air conditioning throughout the Theatre and refurbishing of the seats and refinishing of the floor in the auditorium. It also provides for required City approvals of the Friends’ improvement plans and fmancial security prior to construction of the project. In addition, to allow sufficient time to complete the additional improvements, the amendment extends the term of the lease from 18 months to 24 months. beginning March 1, 1997. All other requirements and conditions of the lease either have been or will be met prior to the Friends beginning construction of the proposed renovations and upgrades. The City permit fees required under the Municipal Fee Schedule for the Friends’ proposed improvements are estimated to total approximately $450. Staff recommends that Council waive these fees, as it did for the Phase 1 and 2 improvements, based on City policy as described below under Policy Implications. RESOURCE IMPACT The proposed improvements will be undertaken at Friends’ sole expense. proposed to be waived will total approximately $450. Permit fees POLICY IMPLICATIONS The recommendation is consistent with past Council action and Policy and Procedures 1-25, "Public/Private Partnerships." This policy encourages the development of public/private partnerships for public benefit and provides for Council waiver of City fees which are associated with construction or capital projects resulting in new or improved public facilities owned or controlled by the City. TIMELINE ’Following execution of the attached amendment, Friends will obtain the required City approvals of its plans and financial security for the proposed improvements. It is anticipated that installation of air conditioning will be completed in June 1998, and refurbishment and refinishing of the auditorium seats and floor will be completed next fall when the Theatre is closed for the season. : ENVIRONMENTAL REVIEW As minor alterations to an existing structure, the proposed improvements are categorically exempt from the requirements of the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment A:Amendment No. 1 to Lease Between City of Palo Alto and Friends of The Children’s Theatre for Project to Improve Theatre (Phase 2). CMR:246:98 Page 2 of 3 PREPARED BY: Janet Freeland, Senior Financial Analyst APPROVED BY: CARL YEATS,/g)i-rector Administrative’Services CITY MANAGER APPROVAL: EM~ILY HARRISON Assistam City Manager CC: Friends of The Children’s Theatre CMR:246:98 Page 3 of 3 ATTACITMENT A AMENDMENT NO. 1 TO LEASE BETWEEN CITY OF PALO ALTO AND FRIENDS OF THE CHILDREN’S THEATRE FOR PROJECT TO IMPROVE THEATRE (PHASE 2) THIS AMENDMENT to the Lease Between the City of Palo Alto and Friends of the Children’s Theatre for Project to Improve Theatre (Phase 2), dated February 3, 1997, hereinafter referred to as the "Lease", is made and entered into this day Of ., 1998, by and between the CITY OF PALO ALTO, a municipal corporation of California, hereinafter referred to as "CITY," and the FRIENDS OF THE CHILDREN’S THEATRE, hereinafter referred to as "FRIENDS"; RECITALS: WHEREAS, the lease provides for the gift from FRIENDS to CITY of additions and improvements to the Children’s Theatre Phase II (the "Project"), as described in Attachment C to the Lease; and WHEREAS, Friends has completed a significant portion of the Project, and FRIENDS and CITY agree it is appropriate, reasonable and desirable that FRIENDS presem CITY with an additional gift of improvemems to the Children’s Theatre consisting of the installation of air conditioning and refurbishment of the auditorium seats and floor; and WHEREAS, the parties may agree to amend the LEASE from time to time and both parties now desire to amend the Lease as set forth herein; and ¢ WHEREAS, FRIENDS and CITY desire to amend the Lease to provide for the construction of the installation of air conditioning and refurbishment of the auditorium seats and floor; NOW THEREFORE, in consideration of their mutual covenants, the parties hereto agree as follows: SECTION 1. The following portions of the Lease are here.by amended to read as follows: a.RECITALS, Paragraph 2, Second Sentence. Accordingly, under this Lease FRIENDS desires to construct an addition to the Children’s Theatre consisting of an outdoor platform and production area adjacent .to the theatre; and install air conditioning and refurbish the auditorium seats and floor within the theatre, at FRIENDS: sole expense and as described in Exhibit "C" and "C-1" attached hereto and incorporated herein by this reference (the "Project"). Once complete, FRIENDS inte.nds to give the improvements constructed under the Project to CITY. b.Paragraph 5, TERM, First Sentence. The term of this Lease shall continue until the completion of the Project as provided under Clause 9 (G) hereof, but in no event longer than twenty-four (24) months. c.Paragraph 9 (A) Minimum construction and Timing. Commencing on or about January 31, 1997, or as otherwise approved by CITY, FRIENDS shall in an efficient and workmanlike manner cause the Project, as previously approved by CITY, to be constructed on the Premises, in substantial compliance with the approved schedule for construction of the Project. d.Paragraph 9, (B), Development Plan and Construction Standards, First Sentence. All design and construction of the Project by FRIENDS shall conform with the "Development. Plans" and "Construction Drawings", as defined and previously approved by CITY, and shall meet all other requirements contained in this Lease. eo Paragraph 10, FRIENDS’ ASSURANCE OF CONSTRUCTION COMPLETION, First Sentence. Prior to construction of the Project, FRIENDS shall furnish CITY’s Director of Administrative Services with a specific construction schedule and evidence that assures CITY that sufficient funds will be available to complete the project. SECTION 2. The following section is added to the Lease: 8(a).PRE-CONSTRUCTIONREQUIREMENTS FRIENDS may not begin construction of the Project until the following conditions have been satisfied: Project Manager. FRIENDS shall have engaged the services of a professional project manager for installation of the air conditioning (the "Project Manager"), who may be FRIENDS’ contractor’s designer for the installation of the air conditioning, and CITY’s Director of Public Works or his designee shall have reviewed and approved FRIENDS’ contract with the Project Manager. CITY’s approval of the contract is required prior to the commencement of the construction of the Project, provided that CITY will not unreasonably withhold or delay its approval of the Project Manager’s contract so long as it sets forth the Project Manager’s responsibilities as follows: (I)To serve as the point of contact for CITY staffs coordination with FRIENDS and FRIENDS’ contractor conceming the installation of the air conditioning, throughout construction and the term of this Agreement; (ii)To generally oversee installation of the air conditioning, including conducting on-site inspections from time-to-time, as appropriate; (iii)To monitor the conformance of the installation of the air conditioning with the Construction Drawings (as hereinafter defined); and to conduct testing of the completed system to assure proper functioning. Bo Construction Drawings Approvals. FRIENDS shall have obtained approval of the construction drawings for the air conditioning installation (the "Construction Drawings") from CITY’s City Engineer and Chief Building Official. Review of the Construction Drawings by the City Engineer shall have included those aspects of design pertaining to whether the air conditioning can be effectively maintained after it is completed and given to CITY for operation and maintenance. The Construction Drawings shall include: (i) (ii) (iii) (iv) Complete structural calculations; Complete construction specifications,; Complete construction contract form; and Proposed construction schedule. Permits. FRIENDS shall have provided to CITY’s Manager of Real Property evidence that all permits and approvals from any and all agencies having pre-construction jurisdiction over the Project, including but not limited to building permits, have been authorized and are available. Do Certification to Chief Building Official. FRIENDS shall have submitted to CITY’s Chief Building Official certification that the plans for any .. proposed building construction comply, in all respects, with current building codes and energy conservation requirements as set forth in the California Code of Regulations, Title 24, for nonresidential construction. The form and content of said certifications shall conform with the requirements of said Title 24. SECTION 3. Except as herein modified, all other provisions of and exhibits to the Agreement shall remain in full force and effect. 3 IN WITNESS WHEREOF, the parties hereto have executed this Amendment,the day and year first above written. ", ’ ’ CITY OF PALO ALTO FRIENDS OF THE CHILDREN’S THEATRE Mayor ATTEST: Its:/ City Clerk APPROVED AS TO FORM: City Attorney APPROVED: Director, Administrative Services Director of Public Works Director of Planning and Community Environment Director of Community Services