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HomeMy WebLinkAboutStaff Report 288-06City of Palo Alto City Manager’s Report TO: FROM: DATE: SUBJECT: HONORABLE CITY COUNCIL~k CITY MANAGER JULY 10, 2006 DEPARTMENT: PUBLIC WORKS CMR:288:06 CREATION OF CAPITAL IMPROVEMENT PROGRAM PROJECT PF- 07011, ROTH BUILDING MAINTENANCE AND APPROVAL OF RELATED BUDGET AMENDMENT ORDINANCE TOTALLING $415,000 RECOMMENDATION Staff recommends that Council: 5 1.Approve creation of Capital Improvement Program (CIP) Project PF-07011, Roth Building Maintenance (Attachment A); and Approve the Budget Amendment Ordinance (BAO) in the amount of $415,000 to provide an appropriation for CIP Project PF -07011, Roth Building Maintenance (Attachment B). DISCUSSION On June 5, 2006, Council approved an appropriation of $415,000 from the Budget Stabilization Reserve for repairs to the Roth Building (Attachment C, CMR 249:06). Interim measures are required to prevent further deterioration of the building until the Palo Alto Historical Association (PAHA) takes over the site. In order to prevent the formation of mildew and deterioration of the structure, waterproofing, perimeter drainage and installation of a temporary ventilation/dehumidification system is necessary. CIP Project PF-07011 will be established to provide required funding for this purpose. RESOURCE IMPACT A Budget Amendment Ordinance in the amount of $415,000 is required to fund this CIP. Funds will come from the Budget Stabilization Reserve. POLICY IMPLICATIONS This recommendation does not represent any change to existing City policies. ENVIRONMENTAL REVIEW This project is categorically exempt from California Environmental Quality Act under Section 15301 as an alteration to an existing facility, and no further environmental review is necessary. CMR:288:06 Page 1 of 2 ATTACItMENTS Attachment A:CIP PF-0701 ! Attachment B:Budget Amendment Ordinance (with BAOs Reserve Approved-To-Date in 2006-07) Attachment C: CMR:249:06 Impacting Budget Stabilization PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: KAREN SMITH Manager, Facilities Maintemance and Projects GLENN ROBERTS Director of Public Works EMI ( m SON -- Assistant City_ Manager CMR:288:06 Page 2 of 2 lP ATTACHMENT A BUILDING MAINTENANCE (PF-0T011) Description: This project provides for window repair, waterproofing of the building foundation walls, installation of electrical service to the building, and a new ventilation system. In addition, roofing repairs will be done on an as needed basis until such time that the building is leased and occupied. Justification: The City acquired the historic Roth Building as part of the South of Forest land use plan. In fiscal year 2003-2004 the City removed the non-historic wings and secured the building. Currently the building is empty waiting for the Palo Alto History Museum to take possession of the building. Funding was provided on a one-time basis for roofing repair and the installation of downspouts. The building’s roof will require on-going maintenance and repair to prevent further leaking. Water is also entering the building through the basement walls. In order to prevent mildew and further deterioration of the building, roof repair, waterproofing, perimeter drainage and installation of a ventilation/dehumidification system is necessary. ClP FACTS: ¯ Project Status: New ¯ Timeline: 2006-2007 ¯ Overall Project Completion: 0% ¯ Percent Spent: 0.00% ¯ Managing Department: Public Works ¯ Comprehensive Plan: Policy C-24 IMPACT ANALYSIS: ¯ Environmental: Categorically exempt from CEQA under Section 15301. ¯ Design Elements: None Pre-Design Costs Design Costs Construction Costs $415,000 Other $415,000 Revenues: Source of Funds:General Fund Budget Stabilization Reserve 2005-06 Budget City of Palo Alto Attachment B ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 2005-06 TO ESTABLISH CAPITAL IMPROVEMENT PROGRAM PROJECT NLIMBER PF-07011, ROTH BUILDING MAINTENANCE AND TO PROVIDE AN APPROPRIATION IN THE AMOUNT OF $415,000 FROM THE GENERAL FUND BUDGET STABILIZATION RESERVE The Council of the City of Pa!o Alto does ORDAIN as follows: SECTION i. The City Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Counci! on June 20, 2005 did adopt a budget for fiscal year 2005-06; and B. In April 2000, the City Council approved the purchase of Roth Building for potentia! development use as a public facility or alternative use if a public facility is not feasible; and C. In acquiring the Roth Building, the City of Palo Alto entered into a development agreement with the Palo Alto Medica! Foundation, which among other conditions, stipulates that the City must complete demolition of the non-historic Roth Building wings by July 19,2003; and D. In the 2002-03 Adopted Budget, the City Council approved the creation of CIP PE-03004 (formerly CIP 10304), Roth Building Wings Demolition and appropriated $930,000 for the Project. Subsequently, during the fiscal year 2003-04, the City Council, through Budget Amendment Ordinance Numbers 4790 and 4785, appropriated additiona! amounts of $275,000 and $30,350, respectively, bringing the total appropriation to $1,235,350; and E. The scope of CIP PE-03004 included design, asbestos abatement, building demolition of non-historic wings, structural bracing and enc!osure of the spine, and dirt backfill of the hole left by the removal of the wings, and all project work were completed in the summer of 2004; and F. In May 2002, the City Council directed City staff to solicit proposals for the lease of the Roth Building. A proposal from the Palo Alto Historical Association (PAHA) was accepted in March 2004. A draft ~Option to Lease and Lease Agreement" (Lease Agreement) was submitted to PAHA, and among the changes that PAHA proposed was the requirement that City maintain and secure the building in water tight condition during the three-year period of the lease option; and G. Before the City can proceed with the negotiations with PAHA, City staff has concerns about the present condition of the building due to heavy rains over the past two seasons. The Roth Building has been impacted by water leakage and moisture, and the removal of the wings and retention of the spine exacerbated the condition of the building. The loss of the building’s electrical and mechanical system resulted to the absence of heat and ventilation which contributed to the moisture build-up in the building interior; and H. Improvements to the building are necessary to protect the building from further deterioration, and until PAHA takes over the site. Improvements to the building would include installation of electrical services, new basement water proofing, window sealing and roof repair; and I. The estimated cost of the improvements is $415,000 and a new CIP project wil! need to be created for the Roth Building maintenance; and J. If General Fund ongoing costs will be incurred, they will be included in the operating budget; and K. City Council authorization is needed to amend the 2005-06 budget as hereinafter set forth. SECTION 2. Capital Improvement Project (CIP) PF-070!I, Roth Building Maintenance, is hereby created. SECTION 3. The sum of Four Hundred Fifteen Thousand Dollars ($415,000) is hereby appropriated to Capital Improvement Project Number PF-070!I. SECTION 4. Revenue in CIP Project Number PF-07011 is hereby recognized by a transfer from the General Fund Stabilization Reserve in the amount of Four Hundred Fifteen Thousand Dollars ($415,000). SECTION 5. The General Fund Budget Stabilization Reserve balance is hereby reduced by Four Hundred Fifteen Thousand Dollars ($415,000) to Twenty Two Million One Hundred Ninety Five Thousand Four Hundred Eighty One Dollars ($22,195,481) as shown in Exhibit A. SECTION 6. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Counci! is required to adopt this ordinance. SECTION 7. The proposed improvements constitute a minor change to an existing facility and are exempt from the California Environmenta! Quality Act (CEQA). SECTION 8. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney APPROVED: Mayor City Manager Director of Services Administrative Director of Public Works Exhibit A Budget Amendment Ordinances Impacting General Fund Reserves Approved-To-Date in 2005-06 Placeholders Impact on theBAO Description ’ ¯ " Already in the General Fund-Cost Revenue 200.05 Adopted~Budget BSR Balance - July 1, 2005 95-06 Net change to reserve-adopted budget 2005-06 Projected ending balance before BAO’s 3AO-Acquisiton of Bressler Property from POST ~.005-06 Midyear Change-Net !BAO- Roth Building S21,066,000 S37,000 $21,103,000 ($!,110,305) $2,617,786 ($415,000) Estimated Futur~ Year Ongoing Costs BSR Balance After BAO’s ] $22,195,481 [ ATTACHMENT City A to City Manager’s Rep r C TO: FROM: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES 12 DATE: SUBJECT: JUNE 5, 2006 CMR: 249:06 APPROVAL OF PROPOSED REPAIRS TO THE ROTH BUILDING, 300 HOMER AVENUE RECOMMENDATION Staff recommends that Council appropriate $415,000 from the Budget Stabilization Reserve for improvements to the Roth Building and w~t[’l return to Council with a Budget Amendment Ordinance if the recommendation is approved. The purpose of the improvements is to prevent further structural deterioration until the building is imprbved and developed for its long term use. BACKGROUND In. April 2000, the City Council approved the $1,957,000 purchase of the Roth Building and its 0.41 acre site for potential development as a "public facility or alternative use if g-public facility is not feasible," in conjunction with the South of Forest Avenue Coordinated Area Plan (SOFA CAP). One of the key proposals in the SOFA CAP was the development of a new neighborhood park at a central location within the SOFA neighborhood. In acquiring the Roth Building, the City entered into a development agreement with the Palo Alto Medical Foundation (PAMF). The development agreement required that the City complete demolition and removal of the non- historic wings of the Roth Building by July 2003. The purpose of the demolition was to provide for additional park space andprovide a buffer of approximately 100 feet between the building and a residential development project being undertaken by Summerhill Homes immediately south of the Roth Building. On March 4, 2002, Council: 1) approved the demolition of the basement/wings associated with the non-historic 1947 addition; 2) approved the temporary retention oft he spine oft he 1947 addition; and 3) reviewed and commented on the summary of a request for proposals for non-profit organizations to lease and renovate the Roth Building. On May 20, 2002, Council approved a Request for Proposals (RFP) and directed staff to solicit proposals for the lease of the Roth Building. Proposals were due November 25, 2003, at which time One proposal was re.ceived, from the Palo Alto Historical Association (PAHA). On May 12, 2003, Council approved the permanent retention of the spine and approved the redirection of infrastructure funds identified for professional park design services and related issues in order to finance the design and construction of an interim landscape plan for the SOFA Park site. On December 8, 2003, Council dedicated the park space, excluding the .41acre Roth Building site. In December 2003, the Roth building non-historic wings were demolished. Seismic bracing of the spine was completed in April 2004. On March 1, 2004, Council accepted the proposal CMR:249:06 Page 1 of 4 submitted by the Palo Alto Historical Association (PAHA), and directed staff to prepare the Option to Lease and Lease Agreement (Option to Lease) and complete the environmental review. On July 12, 2004, Council approved a Budget Amendment Ordinance and contract for construction services to implement the Heritage (SOFA) Park Improvements. The interim park improvements were completed in summer 2004. DISCUSSION Following Council acceptance of the PAHA proposal, staff sent PAHA a draft Option to Lease in April 2004. The draft was in accordance with the terms of the Council-approved Request for Proposal, which was attached to and an integral part of the proposal submitted by PAHA. The Option to Lease provided for a 2-year option term during which time PAHA would fulfil! conditions to exercise the option and enter into the lease. Option conditions include obtaining required City approvals and providing evidence of sufficient funds to develop the property as a history museum. In February 2006, staff received PAHA’s proposed changes to the draft Option to Lease. Proposed changes included extension of the option period from two to three },ears and the requirement that the City maintain and secure the property in water-tight condition during the term of the option. Staff intends to negotiate these and other proposed changes with PAHA and anticipates returning to Council for approval of the Option to Lease in July 2006. However, before proceeding with negotiations, and due to concerns about the condition of the building, staff is seeki.n.g Council approval of funding for certain repairs to the Roth Building necessary to maintain it for another 2 to 3 years until the option is exercised and the building is improved for its long term use. With the heav-y rains over the past two seasons, the Roth Building has been impacted by water leakage and moisture. The impact of the heavy rains on the building has been exacerbated by conditions related to the removal of the wings and retention of the spine, and grading changes made during development of the interim park. Specifically, removal of the wings altered the roof line resulting in a low area that coitects rain water which leaks into the building. Removal of the wings also resulted in loss of the building’s electrical service and mechanical system, so there is no heat or ventilation to prevent moisture build up in the building interior. In addition, grading done during the development of the interim park has damaged a portion of the waterproofing which is attached to the new exterior wall constructed after remova! of the wings. This and grading changes on the site have caused leakage into the building basement. The construction of a permanent SOFA park is unfunded (new capital project) and there was no money available in the budget for the interim park for a subsurface storm drainage system. The only alternative was to dispose of the surface runoff by directing it to low points around the perimeter of the site and allowing the water to percolate down into the ground from these small ponding areas. The area behind the Roth Building was designed to transport the surface flow toward a low spot between the rear comer of the buiIding and the Bryant Street sidewalk and the grading was done accordingly. Subsequent soil settlement along the already shallow swale, coupled with planting of additional trees in the immediate area, l~ave made moving water from the back of the building toward the street virtually impossible, and damp conditions now persist in that area. As a remedy to these conditions and to protect the building from further deterioration until PAHA takes over the site, staff proposes to install a new electrical service to the building so that a ventilation and dehumidification system can be installed. Staff also proposes to seal the CMR:249:06 Page 2 of 4 windows, repair the roof on an annual basis, install new basement waterproofing that comes up higher on the building foundation, install an area drain inlet at the low spot to collect water running off the park and connect the roof gutter downspouts to a pipe that will take the excess water to a sump/drywell outside the building basement or to the storm drain in Bryant Street. The estimated cost of these improvements is $415,000. See Attachment A for itemized improvements and costs. Staff anticipates returning to Council in July 2006 for approval of the Option to Lease with PAHA. Construction of the proposed improvements is estimated to be completed by, early 2007, except for the roof which will be maintained annually. RESOURCE IMPACT The estimated cost of the proposed improvements is $415,000, to be paid for out of the Budget Stabilization Reserve. POLICY IMPLICATIONS This recommendation does not represent any change to existing City’ policies. ENVIRONMENTAL REVIEW The proposed improvements constitute a minor change to an existing facility and are exemp, from the California Environmental Quality Act (CEQA). An environmental review will be included when Staff returns to Council with the Option to-Lease. During the option period, the optionee will also be required to fully comply with all provisions of CEQA as they may apply to the specific development plans. PREPARED BY: WILLIAM W. FELLMAN Manager, Real Property, DEPARTMENT HEAD APPROVAL: CITY MANAGER APPROVAL: CARL Yt Direct~Services EMI’LY HARRISON Assistant City Manager ATTACHMENTS Attachment A:. Proposed Roth Building Improvements CMR:249:06 Pa_e ~ of 4 Palo Alto Historical Association Beth Bunnenberg Gloria Brown Carolyn Caddes Karen Holman Dick Rosenbaum Steve Staiger University South Neighborhood Group CMR:249:06 Page 4 of 4 2 4 5 6 7 8 ATTACHMENT A Proposed Roth Building Improvements Proposed Improvement Ventilation/dehumidification system Electrical service Engineering consultant Window sealing Roof repair (3 years) Repair basement waterproofing Install perimeter drain system Construction contingency Estimated Cost $50,000.00 $75,OOO.OO $ 15,000.00 $10,000.00 $75,O0O.0O $5O,0OO.OO $ 100,000.00 $ 40,000.00 TOTAL $ 415,000.00