HomeMy WebLinkAboutStaff Report 3605
City of Palo Alto (ID # 3605)
City Council Staff Report
Report Type: Special Orders of the Day Meeting Date: 3/11/2013
City of Palo Alto Page 1
Summary Title: Memo to Acknowledge Palo Alto Art Center Foundation final
payment of $418,743
Title: Presentation Acknowledging Palo Alto Art Center Foundation Final
Payment of $418,743 for the Palo Alto Art Center Facility Renovation
Expenses, as well as a Gift of $508,057.10 in Fixtures, Furnishings and
Equipment
From: City Manager
Lead Department: Community Services
Executive Summary
This is an informational memo to provide background for the Palo Alto Art Center Foundation’s
final payment of $418,743 for the Art Center renovation project and for the Foundation’s
contribution of $508,057.10 in fixtures, furnishings and equipment.
Background
On February 7, 2011, City Council approved the following (ID 1301):
Approval of a Construction Funding Agreement in an Amount Up to $2 Million between the
City of Palo Alto and the Palo Alto Art Center Foundation For Upgrades to the Palo Alto Art
Center Renovation Project (PF-07000, Art Center Electrical and Mechanical Upgrades)
The Palo Alto Art Center Foundation (Foundation) has played an integral role in the support and
operation of the Palo Alto Art Center (PAAC) since its inception in 1973. On October 4, 2010,
this longstanding relationship was reinforced through the adoption of a public/private
partnership agreement (CMR:350:10).
This construction funding agreement approved in February 2011 represents more than a
decade worth of work, discussion, and Council action toward the goal of a renovated Palo Alto
City of Palo Alto Page 2
Art Center facility. Beginning with a January 19, 1999 letter to the Council, the Foundation
confirmed its intent to initiate discussions on the subject of a public/private partnership to
renovate and expand the Palo Alto Art Center in order to leverage the City’s deferred
maintenance funds.
The Palo Alto Art Center opened its transformed facility, a LEEDs-silver renovation, to the
community on Saturday, October 6, 2012 with a celebration that drew more than 2,000 people.
The City and Foundation are proud of this landmark public/private partnership that greatly
enhanced the safety, aesthetics, and functioning of a City resource for the benefit of the larger
community.
Discussion
According to the terms of the Construction Funding agreement, the payment schedule outlined
in Exhibit C included a deposit of $1,250,000 provided 75 calendar days prior to the award date
of the construction contract (this payment was made in 2011). At the Notice of Substantial
Completion, the lesser of $750,000 or balance of Foundation Project Costs are due. The City of
Palo Alto and the Foundation mutually agreed to the remaining balance of $418,743, which has
been paid to the City.
The City of Palo Alto would also like to acknowledge the donation of $508,057.10 in fixtures,
furnishings, and equipment (including office furniture, lobby and gallery furniture, moveable
exhibition walls, computer equipment for the Art & Technology program of classes, classroom
furniture for children, and two new gas kilns for the adult studio program) for the transformed
building that the entire community will be able to enjoy for decades to come.