HomeMy WebLinkAboutStaff Report 465-086
City
City of Palo Alto
Manager’s Report
TO:HONORABLE CITY COUNCIL~-[
FROM:CITY MANAGER DEPARTMENTS: COMMUNITY SERVICES
AND PUBLIC WORKS
DATE:DECEMBER 15, 2008
’ REPORT TYPE: CONSENT
CMR:465:08
SUBJECT:Approval of Amendment No. One to Contract Number C08126592 with
the Palo Alto Art Center Foundation in the Amount of $78,580 for a T6tal
Not to Exceed Amount of $368,580 for the Planning and Design Phase for
the Renovation and Capital Improvements to the Palo Alto Art Center,
Capital Improvement Program Project PF-07000
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or his designee to execute
Amendment No. One to Contract No. C08126592 with the Palo Alto Art Center Foundation
(Attachment A), in the amount of $78,580, to complete tl],e design development phase for the
proposed renovation and capital improvements to the Palo Alto Art Center, PF-07000. The original
contract amount was $290,000. With the addition of Amendment No. 1, the total not to exceed
amount would be $368,580.
BACKGROUND
In April 2006, a colleague’s memo was approved by the City Council directing staff to work with the
Palo Alto Art Center Foundation (Foundation) in drafting a Memorandum of Understanding to
expand and renovate the Art Center as a public/private partnership.
In July 2007, the Council approved a Letter of Intent outlining mutually acceptable terms and
conditions for the collaboration between the City of Palo Alto (City) and the Foundation for Phase I
construction of improvements and alterations to the Palo Alto Art Center (CMR:288:07). The
proposed improvements include creation of a children’s wing, improvements to the existing gallery
space, and replacement of mechanical and electrical systems.
In September 2007, the Foundation er]tered into an agreement with Mark CavagneroAssociates, to:
1) design the project through schematic design and design development phase; 2) submit preliminary
estimates of construction costs based on schematic design and adjustments to preliminary estimate of
construction costs based on the design development; 3) prepare construction documents setting forth
CMR:465:08 Page 1 of 3
in detail the requirements for the construction of the project, based on the design reviewed and
approved by the Foundation and City; and 4) provide construction administration services during the
construction phase of the project.
In March 2008, Council approved an agreement with the Foundation allowing for City payment to
the Foundation for the City’s portion of the schematic design, design development, construction
documents, and construction administration services (CMR:107:08). The City’s financial
responsibility, as specified in Capital Improvement Program Project PF-07000 (Art Center Electrical
and Mechanical Upgrades) is to replace original mechanical and electrical equipment and systems to
meet current occupant need, provide code compliance, and optimize operational and energy
efficiency.
DISCUSSION
During the schematic design phase, the Foundation’ s architect identified several issues that required
resolution prior to completion of the design development phase. The issues included compliance
with green building requirements, accessibility codes, seismic upgrades, hazardous materials
removal, and determination of the extent of required electrical system upgrades.
The cost of addressing these is-sues could not be accurately determined until the design developnient
phase was in process. These issues have now been resolved, and will require additional design work,
resulting in increased design expense. The Foundation’s consultants will provide additional design
services to meet the City’s green building requirements, and address building code requirements for
seismic upgrade and accessibility. Addendum #1 requests the additional services funding for
completion ofthe design development phase only. Staff will return to Council following the design
development phase with an updated cost estimate for construction and a request for additional funds
to complete the construction documents and the construction phase of the project.
RESOURCE IMPACT
Funds for this project are available in Capital Improvement Program Project PF-07000, Art Center
Electrical and Mechanical Upgrades.
ENVIRONMENTAL REVIEW
This project is categorically exempt from California Environmental Quality Act review pursuant to
CEQA Guidelines Section 15301 as it consists of maintenance, repair and minor alteration to an
existing public facility that involves no expansion of the existing use.
ATTACHMENTS
Attachment A: Amendment No. 1
PREPARED BY:
Manager, Division of Arts and Sciences
Community Services Department
CMR:465:08 Page 2 of 3
DEPARTMENT HEAD:
DEPARTMENT HEAD:
KAREN SMITH
.Manager, Facilities Maintenance and Projects
Public Works Department
GREG BETTS
Acting Director of Community Services
GLENN S. ROBERTS "~
Director of Public Works
CITY MANAGER APPROVAL:
CMR:465:08 Page 3 of 3
ATTACHMENT A
AMENDMENT NO. 1 TO CONTRACT NO. C08126592 BETWEEN
THE CITY OF PALO ALTO AND THE PALO ALTO ART CENTER
FOUNDATION FOR THE DESIGN OF CAPITAL ]M_PROVEMENTS
RELATING TO THE RENOVATION OF THE PALO ALTO ART
CENTER
This Amendment No. 1 to Contract No. C08126592 ("Amendment No.
1") is entered-into , 2008, between the CITY OF PALO
ALTO (the "City") and the PALO ALTO ART CENTER FOUNDATION (the
"Foundation")(individually, a "Party" and, collectively, the "Parties"), in reference to the
following facts and circumstances:
RECITALS
1. On March 10, 2008, the Parties entered into the Design of Capital
Improvements Relating to the Renovation of the Palo Alto Art Center agreement (the
"Design Agreement").
2. The Parties wish to amend the Design Agreement by increasing the
amount of reimbursement to the Foundation for. design services from $290,000.00 to
$368,580.00, for design services rendered in connection with certain changes to the
Schematic Plans, as defined, and to make allowance for payment for additional design
work upon the completion of the design development phase.
NOW, THEREFORE, in consideration of the terms, conditions, and provisions of
this Amendment, the parties agree as follows:
SECTION 1. Section 4.2 of the Design Agreement is amended in its entirety to
read, as follows:
"4.2 As set forth in Recitals 4 and 5, City will contribute to the Project’s
design consultant’s (Architect’s) costs from a part of the City’s General Fund that is
allocated to the Capital Improvement Program Project PF-07000 (Art Center Electrical &
Mechanical Upgrades) in an amount not to exceed three hundred sixty-eight thousand,
five hundred eighty dollars ($368,580.00). The City will provide City staff support and
other assistance, as practicable, to the Foundation, upon request and at no cost or expense
to the Foundation, in connection with the commencement and completion of the design
and planning phase of the Project."
SECTION 2. Section 4.3(A) of the Design Agreement is amended in its
entirety to read, as follows:
"(A) The City will disburse the City’s share of the full Architect’s costs
and expenses, including the bid and construction administration costs and expenses, not
to exceed three hundred sixty-eight thousand five hundred eighty dollars ($368,580.00) in
the aggregate, as follows: (1) within ten (10) days after the execution and delivery of this
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Design.Agreement, the first installment of forty-three thousand five hundred dollars
($43,500.00) for schematic design and costs and expenses, previously incurred by the
Foundation for the design.- of the Project; (2) the second installment of fifty-eight
thousand dollars ($58,000.00) will be paid upon the City’s determination that the Project
has attained the thirty-five percent (35%) schematic design phase and design
development phase completion milestone; (3) the third installment will be paid upon the
completion of the design development phase for additional design work deemed
reasonable and necessary during this phase, and will be based upon the City’s portion of
the fmal design development cost estimate, which shall not exceed seventy-eight
thousand five hundred eighty dollars ($78,580.00); (4) the fourth installment of ninety-
four thousand two hundred fifty dollars ($94,250.00) will be paid upon the City’s
determination that the Project has attained the fifty percent (50%) Construction
Documents phase completion milestone; and (5) the fifth installment of ninety-four
thousand two hundred fifty dollars ($94,250.00) will be paid upon the City’s
determination that the Project has attained the one hundred percent (100%) Coristruction
Documents phase completion milestone. The City will make payment in accordance with
the payment procedures, as described in Exhibit "C." The City’s City Manager (the "City
Manager"), or designee, will make the determination regarding the percentage
completion milestones referred to in the preceding sentence."
SECTION 3. Exhibit "C" Payment Procedures to the Design Agreement is -
hereby amended, to read as set forth in the attachment to this Amendment No. 1, which is
incorporated in full by this reference
SECTION 4. Except as they are herein modified, all other provisions of the
Design Agreement, including any exhibits and subsequent amendments thereto, shall
remain in full force and effect.
IN WITNESS WHEREOF, the Parties hereto have duly executed this
Amendment No. 1 on the day and year first written.
CITY OF PALO ALTO
APPROVED AS TO FORM:
Senior Asst. City Attorney
APPROVED:
City Manager
Director, Administrative Services
PALO ALTO ART CENTER
FOUNDATION
Taxpayer Identification No,
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EXHIBIT "C"
PAYMENT PROCEDURES
A. General Procedures:
1.The Foundation will be wholly responsible .for paying the Architect in a
timely manner in accordance with its contract with that party.
2.The Foundation will deliver to the City all required documentation, specified
below, for the design services work payments to:
City of Palo Alto
Public Works Division
Attention: Karen Smith, Facilities Manager
250 Hamilton Avenue
P. O. Box 10250
Palo 4klto, CA 94303.
o The individual referred to in the preceding paragraph (the "PW. Manager")
will review and approve the submittals and initiate the process of making
payments to the Foundation in a timely manner in accordance with the City’s
usual accounts payable procedures. The PW Manager may refer her approval
of the Foundation’s invoices to the City’s Real Property Manager, who will
forward the approved invoices the City’s accounts payable personnel for
reimbursement, directly, to the Foundation. The City will not assure the
Foundation that reimbursement will occur within any specified time frame
after submittal; provided, however, the City will endeavor to pay the
Foundation in a timely manner.
B.Payments for Design Services:
The City will contribute the maximum sum of $368,580.00 for the design
consultant services costs of the Project, which sum will be paid to the
Foundation in the installments, as outlined in Section 4.3(A) of this Design
Agreement, following the receipt of the Foundation’s documentation in
support of each installment payment request.
The required documentation will consist of copies of the Architect’s contract with
the Foundation, the Architect’s invoices, as submitted to the Foundation for
payment, with documentation of all design and plan development services
rendered to that point in time, together with the Foundation’s proof of
payment of such invoices.
Following its receipt of the documentation submitted by the Foundation, the City
will process each of the installment payments to the Foundation, based upon
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the Architect’s determination that the design has achieved the completion
percentage stages specified in Section 4.3(A) of this Design Agreement.
o Notwithstanding any other provision in this Section B of Exhibit "C" to the
contrary, the City will not be required to make payment of any amount unless
and until Exhibit "F" is executed by the Foundation and the Architect and
submitted to the City Attorney, who will review it for compliance with the
requirements of Section 6.2 of this Design Agreement.
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