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HomeMy WebLinkAboutStaff Report 136-07TO: City HONORABLE CITY COUNCIL City of Palo Alto Manager’s Report FROM:CITY MANAGER DEPARTMENT: COMMUNITY SERVICES DATE: SUBJECT: FEBRUARY 12, 2007 CMR: 136:07 UPDATE ON THE PUBLIC/PRIVATE PARTNERSHIP WITH FRIENDS OF HERITAGE PARK LIMITED LIABILITY COMPANY This is an informational report and no Council action is required. BACKGROUND On June 5, 2006 the City Council approved a Council Colleagues Memorandum directing staff to work with the Friends of Palo Alto Parks and the neighbors of Heritage Park to explore the creation of a public/private partnership that would culminate in the construction of a playground at the park site. This report provides an update to this effort. DISCUSSION Staff and a neighborhood team have been working on developing a public/private partnership agreement that wilt lead to the construction of a playground at Heritage Park. The Heritage Park neighbors have made excellent progress towards their goal, including the formation of a limited liability company entitled Friends of Heritage Park, LLC (LLC) and the conceptual development of playground designs using a local landscape architect. They have had outstanding success in reaching most of their fundraising goals. A more detailed summary, as authored by the LLC, is contained in Attachment A, "Heritage Park Playground Project." Also attached is the signed Letter of Intent outlining the process by which this project is to be guided (Attachment B). Objectives yet to be completed are the development and approval of the playground design, a memorandum of understanding and option to lease, and a park improvement ordinance. Should playground design work be completed as anticipated, in March, the project will come back to Council for approval in April 2007. The LLC estimates that construction can begin as early as May 2007. RESOURCE IMPACT The LLC estimates the total cost of the playground to be $211,000. Of the estimated cost, the LLC needs to raise $26,000. The City has pledged $75,000 towards the project from the park development impact fee account. As of January 29, 2007 the balance of uncommitted funds in the account is approximately $873,000. ATTACHMENTS Attachment A: Heritage Park Playground Project CMR: 136:07 Page 1 of 2 PREPARED AND APPROVED BY: Services Department CITY MANAGER APPROVAL: Assistant City Manager CMR: 136:07 Page 2 of 2 (Attachment A) HERITAGE PARK PLAYGROUND PROJECT History The land for Heritage Park was a requirement of the development agreement between SummerHill Homes and the City for the development of the former Palo Alto Medical Foundation property. Minimal design and budget were given to Heritage Park by the City when it was developed in the summer of 2005 because of the expectation at the time that a City cistern might be placed underground in the park. The thought was that if this were to occur, revenue would be generated to provide for the further development of the park. The idea for a cistern in this location was later abandoned by the City and Heritage park was left as an underdeveloped park.. Interested neighbors, under the leadership of the Friends of Palo Alto Parks, had raised funds to provide for benches, drinking fountains and a bicycle rack when the park was first developed. At the same time, the Friends of Palo Alto Parks had in mind a strong desire to create a playground in the park. Knowing that the list was long for building or replacing playgrounds throughout the City of Palo Alto and that as a new park, Heritage Park would not come up on that list for years into the future, the Friends recruited leadership within the immediate neighborhood of the park to lead an effort ~o develop this playground. Public-Private Partnership This playground project is a partnership between the City of Palo Alto and the Friends of Heritage Park, LLC (FHPP.) The City will lease the defined property to the LLC for the duration of the construction of the project. When the playground is completed the LLC will gift the playground to the City and the City will maintain the playground. The City has pledged to match up to $75,000 for the project and the FHPP will fund raise the additional cost. The ability of the FHPP to obtain significant pro bono donations to cover the expense of legal work, landscape design, construction expertise and the assembly of the playground equipment under professional supervision provides a unique oppommity for a citizen group to take the lead in creating their neighborhood park amenities in an exceptionally cost effective way. The City has been excited about this partnership and very helpful in facilitating the forging of a new process. The City’s partnership with the Friends of the Children’s Theater was the model we used to begin our planning. Design The design you see before you is a collaborative design between the LLC and the landscape architect, Linn Winterbotham. The neighborhood community was invited to view playground equipment and express opinions about equipment, age levels, colors and location within the park. City staff had previously identified the current designated location as the preferred location from the City’s perspective and the community agreed. Budget/fundraising The budget for the playground is currently $211,000. This number is co~asiderably lower than it would be as a City developed playground given the pro bono opportunities that this partnership allows. The City has pledged to match up to $75, 000 of that amount and the LLC has pledged to fundraise all additional funds needed. Fundraising has been conducted by the Friends of Heritage Park under the 501.c3 status of the Friends of Palo Alto Parks which acts as the fiscal agent for the fundraising and all expenses. Fundraising was begun with a $25,000 gift from SummerHill Homes. Additional funds have been raised by offering donors "naming" opportunities on equipment and landscape elements. Significant funds have been raised from donations by individuals and organizations in exchange for personalized ceramic tiles which will be mounted on the entry posts to the playground area. These are primarily handprint tiles of children with their names and ages. There are a few remaining "naming" opportunities in the new playground which will complete the Friends fundraising effort. The Heritage Park Friends have raised approximately $114,000 and have about $22,000 yet to raise. An additional handprint tile opportunity may be added in the spring. Timeline The fn’st efforts on the playground were begun in Spring of 2006. By the summer 2006 we had a working understanding with the City for our partnership and the City Council authorized staff to proceed with creating a Letter of Intent with the LLC at their meeting in early July. Fundraising was conducted by the FHPP in the summer and fall, design and legal work were accomplished in the fall. Review by the Parks and Recreation Commission, neighbors and neighboring museums is being conducted in January 2007, with City staff review expected in February/March. Final documents are expected to come to the City Council in April for their approval and construction to begin in mid May. Dedication of the playground is planned for surmner. Office of the City Manager January 5, 2007 Friends of Heritage Park LLC c/o John Tarlton 1027 Bryant Street Palo Alto, CA 94301 Attention: Kristine Erving/Roger Smith/John Tarlton RE: Heritage Park Playground and Play Structure Dear Messrs. Erving, Smith and Tarlton: The City of Palo Alto (the "City") and Friends of Heritage Park LLC ("Friends") wish to collaborate in bringing to Heritage Park (the ~Park") a playground and associated playground equipment. The City is interested in providing to Friends for a limited period of time a certain amount of land (the "Premises") within the Park, in order that Friends may develop the Premises as a playground and construct or otherwise install a playground structure thereon (the "Project"). The City understands that Friends has an interest in signing a contract with the City in regard to Friends’ commitment to complete the Project,on mutually acceptable terms and conditions, as follows: The Premises shall be generally located in the TBA portion of the Park and shall, be approximately TBA square feet in area. °The term of any lease, license or other contract shall be for twelve (12) months, or as otherwise may be agreed to by the parties. °Friends will not pay rent to the City but, in lieu thereof, it will contribute funds (over and above the amount to be contributed by the City, as described in paragraph i0 below) to be used to acquire the services of a landscape architect, a project manager and/or other professional(s) with respect to the design and execution of the Project and defray Project-related costs and expenses. The services of consultants may be procured in accordance with competitive selection processes as determined by Friends. 070105 gk 0072733 P.O. Box 10250 Palo Alto, CA 94303 650.329.2563 650.325.5025 fax Friends of Heritage Park LLC January 5, 2007 Page 2 Friends will submit the final plans and specifications and working drawings for the construction, erection or installation of the Project to the City’s Departments of Community Services, Planning and Community Environment and Public Works for review and to the City’s boards and commissions, including but not limited to the Parks and Recreation Commission, and the City Council for review and approval. Friends will obtain and maintain all required City permits and other authorizations and furnish any financial and non-financial security, during the construction, as appropriate and upon request, to the City, including but not limited to insurance, indemnity, lien waivers, performance and payment bonds and covenants. Friends will furnish a copy of its articles of organization and other information relating to its corporate status to the City for its review and approval. o Friends will undertake a community outreach and fund-raising program to garner the Park community’s input and support for the Project. Friends will coordinate construction efforts in Heritage Park with the Palo~Alto History Museum, Palo Alto History Museum Committee and/or the Palo Alto Historical Association in connection with its/their refurbishment of the Roth Building at 300 Homer [at Bryant], Palo Alto, adjacent to Heritage Park. o Friends will surrender possession of the Premises and transfer title to the Project, upon completion thereof, to the City. The City will provide staff support and other assistance, upon request, to Friends in connection with the execution of the Project. i0.The City wi!l contribute funds in an amount not to exceed $75,000, to ~be applied to the costs referred to in paragraph 3 above. 070105 gk 0072733 Friends of Heritage Park LLC January 5, 2007 Page 3 Ii.The City will waive Friends’ obligation to pay Project-related fees and charges that are due and payable to the City’s General Fund. Friends will be obligated to pay all fees and charges that are due and payable to the City’s Enterprise Fund in connection with the Project. 12.The contract between the parties will be subject to the approval of the City Council and the approval as to form by the City Attorney. The Council will be required to adopt a Park Improvement Ordinance in connection with the Project. This letter is not intended to be a binding contract between the parties with respect to the Project. It is intended to facilitate discussion of the Project and is only an expression of the basis on which the parties would enter into a contract regarding the Project and the rights and obligations of the parties. The City requests Friends’ execution of this letter of intent below in order that the City may proceed to develop a draft contract concerning the Project for Friends’ consideration. The City does not undertake any obligation or other commitment to a realtor or real estate professional in connection with any services rendered concerning this matter. Sincerely, CITY OF PALO EM~r,Y HARRISON"-. Assistant City Manager Friends of Heritage Park LLC hereby acknowledges the foregoing proposed general terms and conditions of a contract between the parties pertaining to the Project. 070105 gk 0072733