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HomeMy WebLinkAbout1998-06-08 City Council (20)TO: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE:JUNE 8, 1998 CMR:249:98 SUBJECT:REQUEST FOR COUNCIL DIRECTION REGARDING TERMINATION OF THE TEN-YEAR LEASE WITH THE PACIFIC SKYLINE COUNCIL/BOY SCOUTS OF AMERICA; SEA SCOUTS FOR THE SEA SCOUT FACILITY AT THE END OF EMBARCADERO ROAD IN THE PALO ALTO BAYLANDS REPORT IN BRIEF This report recommends that Council authorize the City Manager to extend for one year the lease with the Pacific Skyline Council (formerly Stanford Area Council)/Boy Scouts of America, Sea Scouts (Sea Scouts) for the Sea Scout facility at the east end of Embarcadero Road in the Baylands. The ten-year lease ends on June 30, 1998, and there is no provision in the lease which would allow Sea Scouts to occupy the building beyond that date. Additionally, Sea Scouts is not prepared to relocate. CMR:2~9:98 Page 1 of 4 RECOMMENDATION Staff recommends the Council authorize the City Manager to extend the lease for one year, . and that Sea Scouts be advised to find a new location, given the damaged condition of the Sea Scout facility floor and foundation, and the infeasibility of repair. To assure that Sea Scouts will follow through, the extension would require that Sea Scouts make quarterly reports to the City Manager on its progress in finding a new location. BACKGROUND The Baylands Master Plan, adopted by Council in 1978, established a final plan for the harbor. The Plan called for the removal of the berths and buildings, returning the harbor to its natural state. The Master Plan was reaffirmed by the voters on November 4, 1980, when a ballot measure to continue operation of the harbor was defeated. On February 10, 1986 (CMR: 142:6), staff presented Council with a Yacht Harbor Building Assessment Report that recommended the demolition of the Sea Scout building, as part of the harbor reclamation project. On October 24, 1988 (CMR:495:8), Council delayed the demolition by authorizing the Mayor to execute a five-year lease with a conditional five-year extension option in order to give Sea Scouts adequate time to find new facilities. The five- year extension option was subject to the condition that Sea Scouts remove the piers and existing dock and relocate its five largest vessels during the primary lease term. The Sea Scouts removed the piers and dock and moved the vessels to the Port of Redwood City within the allotted time period, and its request to exercise the option for an additional five years was granted. The lease Will expire on June 30, 1998, and there is no provision in the lease which would allow Sea Scouts to occupy the facility beyond that date. Under the current terms and conditions of the lease, it would be unlawful for Sea Scouts to use the facility after June 30, 1998. The demolition of the Sea Scout building is scheduled to occur in the last stage of the harbor restoration.. Volume 2 of the Adamson Building Management System Infrastructure Management Study, dated November 8, 1996 and reviewed by the Council Finance Committee on November 19, 1996, estimates the cost of demolition at $30,000. The Capital Improvement Program (CIP) project for the final phase of the harbor restoration has yet to be established and was not included as part of the 1998-99 Council-approved projects. The Adamson Report made the following assessment as to the condition of the building: "This facility is in a tidal zone and is periodicallyinundated with water. The structure appears to be damaged. Repair of the structure would require elevating the building, providing new foundations, floor and roof structure, interior finishes and mechanical and electrical systems. The cost of this work would approach the cost of a new facility constructed elsewhere. CMR:249:98 Page 2 of 4 "However, the building is in the airport flight path, and therefore elevating the structure is not permitted. No feasible solution appears appropriate." While the purpose of the lease was to allow Sea Scouts ten years to find a new location, it appears Sea Scouts has no intention of vacating the facility. In fact, Sea Scouts has approached the Historic Resources Board (HRB) in an attempt to have the building designated a historic structure. Most recently, at Sea Scouts’ request, the Christmas in April organization made minor repairs, painted and re-roofed the building. However, no work was done on the foundation. On May 12, 1998, a formal notice of termination was hand ’ delivered and mailed to the Executive Director of the Pacific Skyline Council (attached). DISCUSSION Staff has determined five overriding reasons why the terms of the lease are still valid: ¯Removal of the Sea Scout building is scheduled as part of the final phase of the Baylands Restoration Project. °The foundation and the flooring of the building have been damaged by continuous tidal action since a break in a sea wall in Winter 1971. The building cannot be elevated because it already encroaches into the airport safety zone. If the building could be repaired, the cost of the repairs would approach the cost of constructing a new facility. Sea Scouts meets in Palo Alto, but its boats are in the Port of Redwood City. A few years ago, the Port of Redwood City staff suggested that it would be willing to discuss donating a site and consolidating all of Sea Scout activities in its harbor to one location. This information was passed on to the Sea Scouts, but it is not known at this time if the concept were pursued or if the harbor staff would still be willing to discuss this option. City of Palo Alto staff feels strongly that this concept should be explored fully. It also appears that Sea Scouts has not determined what it would cost to build a new facility and what alternatives might be available to fund those costs. Staff believes that, for all the reasons stated above, the lease for the Sea Scout building should be terminated. However, because Sea Scouts is not prepared at this time to relocate, and the CIP project for the final phase of the harbor restoration has yet to be established, staff CMR:249:98 Page 3 of 4 recommends a one-year extension of the lease, conditioned upon the Sea Scouts providing quarterly reports to the City Manager on its progress in finding a new location. ALTERNATIVES If the Council chooses not to extend the lease, Sea Scouts will have to vacate the building on June 30, 1998. Council may also choose to extend the lease for a period shorter or longer than one year. Staff believes the one-year extension is limited enough not to interfere with the City’s plans to restore the harbor and is generous enough for Sea Scouts to find a new location. RESOURCE IMPACT Funding for the demolition of the Sea Scout building will be requested as part of a future CIP request. POLICY IMPLICATIONS Due to the fact that the City is not yet ready to fund the removal of the facility, extending the lease would be consistent with City policy and the original intent of the ten-year lease to give Sea Scouts enough time to find a new location. ENVIRONMENTAL REVIEW ’- The one-year lease extension represents a continuation of the same use of existing facilities; therefore, it carries a Class I facility exemption under Section 15301 of CEQA. ATTACHMENT Attachment A: Attachment B: Notice of Termination letter dated May 12, 1998 Pacific Skyline Council/Boy Scouts of America letter to Carl Yeats, May 26, 1998 PREPARED BY: APPROVED BY: William W. Fellman, Manager, Real Property CAd mAl~ni sY~aAtiTveS~e l~cC:~r EMI~ HARRISON - Assistant City Manager CC: Pacific Skyline Council/Boy Scouts of America, Sea Scouts Related CMR’s:CMR:142:6 CMR:495:8 CMR:249:98 Page 4 of 4 ATTACHMENT A City of Palo Alto Administrative Services Department Divisions Administration 650.329.2692 650.323.1741 fax Budget 650.329.2260 650.323.1741 fax Information Technology 650.329.2313 650.617.3109 fax Real Estate 650.329.2264 650.323.1741 fax Finance 650.329.2182 650.323.1741 fax Accounting 650.329.2182 650.323.8356 fax Purchasing 650.329.2271 650,329.2468 fax Investments 650.329.2182 650,323.8356 fax Revenue Collections 650.329.2317 650.617,3122 fax Parking Citations 650.329.2252 May 12,1998 Tim Gorman Chief Executive Officer Pacific Skyline Council P.O. Box 5005 San Mateo, California 94402 Hand Delivered and mailed on May 12, 1998 Re: Notice of Termination of the December 19, 1988 lease between the City of Palo Alto and the Stanford Area Council/Boy Scouts, for the Sea Scout Building. Dear Tim: The purpose of this letter is to give notice that the above referenced lease for the Sea Scout building at the Palo Alto Harbor will expire on June 30, 1998 and there is no hold over. Clause II, Subparagraph C and Exhibit A Clause 23 of the lease, require that the Pacific Skyline Council (successors in interest to the Stanford AREA Council/Boy Scouts of America, Sea Scouts) execute a quit claim deed at the termination of the lease. Please have the enclosed quit claim deed properly signed, notorized and returned to me. The effective date of the quitclaim deed will be July 1, 19.98, and the building must be vacated by that date. Thank you for your cooperation in this matter. If you have ~.ny questions please call me at 329-2472. Sincerely, William W. Fellman Manager, Real Property EO.Box 10250 Palo Alto, CA 94303 Recorded at no charge in accordance with Government Code Section 6103 at the Request of, and when recorded Return to: CITY OF PALO ALTO REAL ESTATE DIVISION P.O. Box 10250 250 Hamilton Avenue Palo Alto, CA 94303 A.P. No.: Parcel No.: Project : IQUITCLAIM DEED I Portion of 8 - 6 - 01 Palo Alto Yacht Harbor FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the Stanford Area Council Boy Scouts of America does hereby remise, release and quitclaim to the CITY OF PALO ALTO, amunicipal corporation, all right, title and interest to the improvements and property described in Exhibit "B" and shown in Exhibits "C" and "D", attached hereto and made a part hereof, located in th~ City of Palo Alto, County of Santa Clara, State of California. (DOC10/88) Dated:By: Council Executive ALL-PURPOSE ACKNOWLEDGEMENT STATE OF CALIFORNIA ) COUNTY OF SANTA CLARA ) On , 1998, before me, (NOTARY) personally appeared s IGNER ( S )personally known to me -or- proved to me on the basis of satisfactory evidence to be the person(s) whose name is/are subscribed to the within instrument ~and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. NOTARY’ S SIGNATURE This is to certify that the interest in real property conveyed by the within deed or grant to the City of Palo Alto, a municipal corporation, is hereby accepted by the undersigned officer or agent on behalf of the Council of the City of Palo Alto, pursuant to authority conferred by resolution of the said Council adopted on March 15, 1971, and the City of Palo Alto consents to recordation thereof by its duly authorized officer. Dated By: Assistant City Manager APPROVALS Approved as to Form Approved as to Content Sr. Asst. City Attorney ASD/Real Property Div. By. BY Approved as to Description Public Works/Engineering ALL-PURPOSE ACKNOWLEDGEMENT STATE OF CALIFORNIA ) ) SSo COUNTY OF SANTA CLARA ) On , 1998, before me, ( NOTARY ) personally appeared SIGNER (S) __ personally known to me -or- __ proved to me on the basisof satisfactory evidence to be the person(s) whose name is/are subscribed to the Within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the °° instrument the person(s), or the entity upon behalf o’f which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary’s Signature Exhibit B A.P. NO. PREPARED BY: CHECKED BY : APPROVED BY : DATE: 08-05-01 T. Peters L. Cortes J. Remley 10-14-88 ~ LEGAL DESCRIPTION SEA SCOUT LEASE Parcel 1 Beginning at a 3/4" iron pipe with plug stamped CPA LS5223 being N 51° 55’ 32" 1380.42 feet from a monument in the centerline of Embarcadero Road. Said monument being N 51° 37’ 00" E 1558.72 feet from the intersections of the centerlines of Embarcadero Road and Faber Place. Thence N 48° 45’ 42" E 246.11 feet to a 3/4" iron pipe with plug stamped CPA LS5223; Thence N 42~ 04’ 53" W 34.27 feet to a 3/4" iron pipe with plug stamped CPA LS5223; Thence S 45~ 23’ 46" W 247.34 feet to a 3/4" iron pipe with plug stamped CPA LS5223 ; Thence S 45° 02’ 06" E 19.79 feet to the point of beginning. Containing 0.153 agres of land more or less. Being pa~ of that ce~ain 29.66 acre parcel recorded January 14, 1921 in volume 532 of deeds at page 59 of Santa Clara County Official Records. parcel 2 Beginning at a 3/4" iron pipe with plug stamped CPA LS5223 being N 53~ 44’ 04" E 1492.79 feet from a monument in the centerline ofEmbarcadero Road. Said monument being N 51~37’ 00" E 1558.72 feet from the intersections of the centerlines of Embarcadero Road and Faber Place. Thence S 54~ i0’ 44" E 77.29 feet to a wooden hub; Thence N 33~ 10’ 40" E 30.82 feet to a 3/4" iron pipe with plug stamped CPA 125223; A.P. No. 08-05-01 Sea Scout Lease 10-14-88 Page 2 Thence S 520 52’ 02" E 17.56 feet to a 3/4" iron pipe with plug stamped CPA LS5223; Thence N 420 52’ 37" E 122.12 feet; Thence S 460 36’ ii" E 44.92 feet; Thence N 430 23’ 49" E 16.10 feet; Thence N 46° 36’ Ii" W 45.06 feet; Thence N 42° 52’ 37" E 29.58 feet to a nail set in a concrete sea wall; Thence N 45° 08’ 45" W 78.14 feet to a 3/4" iron pipe with plug stamped CPA LS5223; Thence S 450 49’ 01" W 212.41 feet to the point of beginning. Containing 0.399 acres of land more or less. Being part of that certain 29.66 acre parcel recorded Janua.%-y 14, 1921 in volume 532 of deeds at page 59 of Santa Clara County Official Records. SAN FRANCISCO 532 O.R. SS LS5223. W. OO£~EN HUB rMENT $,T ~ EMBARCADERO MAP CITY OF PALO ALTO. CALIF~~ .....~ ATTACHMENT B PACIFIC SKYLINE COUNCIL BOY SCOUTS OF AMERICA P.O. BOX 5005 SAN MATEO, CALIFORNIA 94402 May 26, 1998 Carl Yeates, Director, Admin. Serv. City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 Dear Mr. Yeates: I am sending you the enclosed information in lieu of Bill Fellman’s absence. It is our understanding that at the June 8 meeting of the Palo Alto City Council, there will be an agenda item concerning the Sea Scout building (located on the bay at the end of Embarcadero) lease which expires on June 30, ! 998. The Pacific Skyline Council would like to request an extension of the lease from the City Council for the reasons outlined in the enclosed material. I hope this information will assist you in making a decision. If you have any questions, prior to the June 8 meeting, please feel free to give us a call. Sincerely, Tim Gorman Scout Executive Je Enclosures FALO ALTO SERVICE CENTER 1305 MIDDLEFIELD ROAD, PALO ALTO, CA 94301 TEL. 415-327-5900, FAX: 415-327-1905 PACSKY@aol.com SAN MATEO SERVICE CENTER 1300 S. AMPHLE’FI’ BLVD., SAN MATEO, CA 94402 TEL. 415-341÷5633, FAX: 415-341-4527 PACSKY@aol.com Pacific Skyline Council Boy Scouts of America Palo Alto/Boy Scout- Sea Scout Building Background For years the Pacific Skyline Council (successor to the Stanford Area Council) of the Boy Scouts of America, has occupied what has become known as the Palo Alto Sea Scout Base. The Base has been a meeting and activity area for our Sea Scout-ships along with providing storage facilities. Originally, the Base also provided a berthing area for the Sea Scout vessels. During the last 10 years the vessels and docks have been removed. Over the years, the site and building have been in various degrees of repair with today finding us with a facility probably in the best state of repair in recent memory. Through the efforts of Christmas in April over $20,000 in new paint, sea wall and roofing repairs have been made just a month ago. At the current time, six ships with a membership totaling 150 young men and women take advantage of the facility for such activities as meetings, training, competitions, etc. In a meeting with a few members of the City’s Historical Buildings Commission and real estate manager, Bill Feldman, a discussion was held regarding the historical significance of the "Birge Clark" building and possible steps to move or demolish the structure. We believe the sentiment at that time was to do all possible to somehow retain the facility but probably at another location. To date, neither the Boy Scouts of America nor the City has pu~ together a proposal for either moving or financing a full repair. The Boy Scouts of America would be interested in preserving the building either at its original site or a location suitable to the Boy Scouts of America and City of Palo Alto. Pacific Skyline Council Boy Scouts of America Our Request The Pacific Skyline Council would like the Palo Alto City Council to consider a two-year extension of the current lease. The purpose of this extension would be for us to: 1. Explore possibility of moving the building to another site: 2. Determine the cost of such a move, the location of the new site, and financing of the move. 3. If the above proves impossible, we agree to vacate the property by June 30, 2000.