HomeMy WebLinkAbout2002-10-21 City Council (17)City of Pale Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: COMMUNITY SERVICES
DATE:OCTOBER 21, 2002 CMR: 406:02
SUBJECT:RELOCATION OF THE FRIENDS OF THE PALO ALTO
LIBRARY TO CUBBERLEY COMMUNITY CENTER
This is an informational report and no Council action is required.
BACKGROUND
Since 1938, the Friends of the Palo Alto Library (FOPAL) has been the volunteer and
funding support organization for the Palo Alto Library system. One element of FOPAL’s
program is a used book selling and recycling operation that collects and sells used books
that come from many sources including City library discards and donations from other
organizations and individuals. Through this operation, FOPAL has been able to
contribute substantial funding to the library. Last fiscal year the FOPAL book selling
operation collected approximately $120,000 for support of the library.
FOPAL has occupied a space in the Terman branch library since its opening in 1985. In
1999, two classrooms in the adjacent wing of the Terman site were vacated and FOPAL
expanded its book selling operation into these rooms. In September 2000, three more
classrooms were vacated and FOPAL again expanded its operation into the entire wing of
five classrooms. With the additional space, FOPAL was able to expand its program and
thus increase its monetary contributions to the library.
In 2001, the Palo Alto Unified School District (PAUSD) purchased the Terman site back
from the City in a land swap deal. FOPAL was given until September 30, 2002 to vacate
and move its operation so PAUSD could begin renovation work. Recently, PAUSD
granted FOPAL a one month extension, allowing the group to stay until October 31,
2002.
D SCUSS ON
For the past year, staff and the members of FOPAL have worked diligently to find a new
home for the book selling operation. Commercial leases were explored, but no viable
space was found. In researching possible solutions using City land, staff found only one
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space that could possibly meet the requirements of the FOPAL book selling operation.
This space is located on the Cubberley Community Center site adjacent to and just north
of the tennis courts. The land had been used as a temporary garden area for one of
Cubberley’s tenants.
The Cubberley site will accommodate a 3,600 square foot re-locatable building. It has
automobile access via a lane that intersects Middlefield Road. Staff is now in the process
of ordering the buildings and preparing plans and documents for the appropriate permits.
It is staffs intent to have the re-locatable building ready for FOPAL occupation by the
end of October.
Staff has also negotiated a letter of understanding with FOPAL for use of the facility.
The main terms of the agreement are as follows:
The City will provide a 3,600 square foot re-locatable building on the Cubberley
Community Center site for use by FOPAL. The City will also provide electrical
service, recycle and trash bins, a handicapped parking space and awnings attached to
the building.
FOPAL will continue its use of space in the Terman Library.
The term of the agreement is eight (8) years. FOPAL shall have the option during the
length of the agreement to terminate its use of the building by giving the City a three
month notice should it decide to end its occupancy.
The City will bear first year costs for building delivery, installation and set-up which
will be approximately $70,000. The City will also pay all current and future electrical
utility charges.
FOPAL will pay rent to the City for use of the facility. Because FOPAL is uncertain
of its revenue earning potential in the new facility a sliding scale has been developed
to help accommodate the possibility of reduced income. FOPAL’s rental costs will be
based on the square footage rental rates paid by the Cubberley visual artists. At the
current rate of $.55 per square foot, FOPAL’s monthly rent for 3,600 square feet of
space will be $23,520 per year.
Should FOPAL’s book selling operation raise more than $100,000 in annual revenue it
will pay 100% of rental cost owed.
For annual revenues under $100,000, each $1,000 under the cap will represent a 2%
reduction in rent.
CMR:406:02 Page 2 of 3
The maximum allowable percentage used to reduce rent payment is 60%.
After eighteen months from the start of the agreement the above rental charges will be
reevaluated by both parties and readjusted based on the history of revenue production
in the new location.
RESOURCE IMPACT
Implementation and set up costs for the re-locatable building are approximately $70,000.
Funding for this amount will be requested from the General Fund Budget Stabilization
Reserve as a mid-year budget adjustment. Additionally, the Library’s budget will be
increased to expend annual lease payments and receive rental revenue. If FOPAL is able
to generate sales approximately equal to those at its Terman operation, the rental charged
to FOPAL will offset the lease payments to the re-locatable company of approximately
$23,000 a year. If FOPAL cannot achieve its revenue goal, the Library budget will be
required to pay the differential in lease costs.
Should FOPAL opt out of the agreement, the City will have an option to continue to use
the building as additional community center program space, or leased or rented space. It
is estimated that annual rent for such a facility could range as high as $80,000 per year.
POLICY IMPLICATIONS
All fire and building code, environmental, and land use policies have been reviewed by
the appropriate departments and staff level ARB approval is forthcoming.
ATTACHMENTS
Attachment A:
PREPARED BY:
Faci
JAMES
Community Services
REVIEWED BY:
PAUL
Din
CITY MANAGER APPROVAL:
City
BENEST
ger
CMR:406:02 Page 3 of 3
Attachment A
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