HomeMy WebLinkAbout0139.094February 10, ~994
HONORABLE CITY COUNCIL
Palo Alt.o, california
'-.~ .
ULLUV UO'lRTlt 351 IOMJB Aymm-E -goYla,. 70B PIOro SALS
Attention: Policy and Servioes co~ittee
_. of the Council'
'!Jt9t1 " Dri.,
This report requests council direction on the issue of a' Request
tor Propo .. lll (Rl'P) (or an option to lea .. the Willi ..... property at
]5.1 BOIler Avenue ~
On Dee6aher 13, 1'93, council passed • aotion to reter to the
Policy a.">d Service. c.,..ittee {PliSI the issue or a Request for
Propo8al (Rl'P) for the Williams property and a lIlOre precise
definition of the propcsa1 6 and directed staff to return with a
Buclqet .A:aendaent ordinance (BAOj for the appropri.ate funds to
provide for continued. .aiIltenanee ot the property.. On ,January 18,
1993, council approved a BAa for $4,500 in additional funds to
_intain the property.
nrneu ,"V-'t for Propo .. l.
To facilitate discussion o~ the issue of a new RFP and .. aore
precise definition of the proposal, a qeneral dascriptlon of the
.ajor elements of the previous RFP follows.
Attached i. a Blmmary of the RFP (Attaol1llent AJ and the RFP itself
(Attachaent B). TIle RFP co~ists of an Inf~tion Flyer
(su..arioing the offering) and a Proposal Package (including
Proposal taras, Proposal ~estionnaire, form or Option to Lease,
CMR:1l9:94
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and form of Lease). Due-to its; length, copie.s of the Proposal
Package are provided only for COUTICi 1 and Lihrary packets. T~_e
Information Flyer has be~n reproduced tor all packets. complete
cQ~ies of the RFP including the proposal Packaqe are available for
review in the Real Property Office at city Hall as well a6 at all
libraries e~cept Children's. The qoal of the RFP process is to
19ase the property under a lonq-tarm lease to a group or
org&nl:z.a.tion which would improve, maintain and operate the
property, at no cost to the City, as a use which would fit within
the UBe restriotions of Rhona WilliaJl1S 1 will, provide public
bene~it and praserve ana ~aintain the historic significancE of the
property. The requi-'t'ements, conditions and features of the RFP are
ba.aed on the te.rms ot Rhona williams' 'Will, req'.lired iJUprovements,
the Historic Resources Report, the city's Policy and Procedures for
Leased Vae ot City Land/Facilities (Attachment C}, and previous
Council direction.
Os. o( \hI Property and Term' of th' Will
'l'h4 RPP describe.s the requirements of Rhona williams' will that the
property (generally) be usee! for park and/or cultural p'Urposes and
requires the proposer to show how its praposed use satisfies the
conditions of the vill.
IDQ'9ir!14 'prey .. _at. ,nA E.tiut.ad COlt.
The RFP identifies the minimum improvements and related estimated
costs required. tor an.y use of the property. These improvB-lIIents and
ccsts includ.e t..""le cost of the soils investigation that must be
reial>ursed to the Cit:y ($7,850) I!nd the estimated cost ot the
r8lloval ot the underqrollnd tan!< ($12 ,000 to 19,000 J • Total
estlJDated cost of the miniJlUm required 11llprove!IIents is $118, !520 to
$1.25,~20~ These costs do not inclu.de the cos.ts of any cleanup tha.t
may be necessary in conjunction wit.., the removal of the tank.
The RFP also identifies in a general way the additional Significant
improvements that viii be required for conversion of the property
to 6 non-residentia1 use~ The full cost of these improvements is
not possible to estiRl3.te without. knoWing the nature ot the specific
use of the property.
liFteria Pr···ryalioa
The Historic Resources Report includes quidelines and standards for
historic preservation and rehabilitation of the property~
Depending on use, the cost ot complying with these guidelines .ay
);)e significant. To ensure that the requirements of the RFP are not
BO restrictive as to not be feasible for potential tenants, the R.P'P
affords some degree ot tlexibility to tha proposers in addreSSing
CMR:139:94 2
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the historic quidelines and recommendations. However, the city
:maintains the ability to control the appropriAte degree of historic
preservation for the site through its evaluation and selection of
proposals, required review and approval of the use and development
plans durinq the option term and required im.plementation of the
plans under the lease.
The Historic Resou.rt:es Report is attached as Exhibit III to the
option to lease aqreement ~ proposer s are requ ired to shoOW' how
th~ir proposed improvements and modifications meet the ~~idelines
and standards for historic preservation and rehabilitation o! the
property, .as set forth in the Histor-ic l\.;,;sources Report. The.
degree to which proposers meet the historic guidelines and
r~endations is one ot the evaluation criteria for proposals.
Consistent with the City's policy for the Leased Use of City
Land/Facilities, proposers are also required to provide the
followinq information., wh.ich viII be considered in evalul!ltinq
proposals: 1) the extent to which the proposal satisfies .. public
needj 2} the con.istency of the proposed use with City qoals and
objectives as set forth in the Co.prehensive Plan and Zoning
ordinancej 3) the iDpact of the proposea use on the: neighborhood,
comrunity and environment; .) the deqree of puJ:lolic access and fees
to De charqed. to Palo Alto citizens; 5) the monetary and
DOnJIiiOnatary consideration to the City; and. 6J the history and
IlSSealDlent of the proposer's ability to carry out the construction
and operation of the facility and services as proposed.
Proposals will be reviewed and evaluated tor recommendation to the
City council by a proposal evaluation committe.e. coJllprised of
representatives of city statt f"rOll Planninq., Reel Estate and
Ccm.unity Services., as well !!IS & Bember of the Historic Resources
Board (RRS) •
•• yiew 8pO Approval of Ilana Dgrinq Optiop T.r.
OnO$ a successful proposer bas been selected by the City council
and the option to lease has been execu'te4, the optionet!'s plans
8UbIlitted for City review durinq the option period lNiiot include
interior plans, structural plene, exterior elevationEll l interior
elevations and landscaping plans, and .ust indicate specific plans
and details of the historic preservation to be included in
developing the property. These plans .ust be reviewed and approved
by the HRB, the Architectural Review Board l Planning commission and
tbe City Council. Also, durinq the option tertii, the optionee Ilust
.~it and reeeiva approval from the city Manaqer or her designee
of a lonq-term maintenance plan for the buildings and landscaping.
CMR:139,94 3
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RtqUireO %.proyeme~ts .n~ Haintenence Under the Lea ••
Required improvements under the lease are thos~ improvements
identified and shewn in the plans approv6d by the City durinq the
option tentl.. The lease also requires that all maintenance and
repaire to the property be in accordance with the maintenance
proqram approved by ~~e city during the option period ..
eare. KaiiPt'DI'P-and Baaurlty puring tb, Qptiop .... n
The REP requires proposers to submit a plan for the care,
aaintenance and security of the. qrounds and house durinq the period
of the option. This is a bid item along with the proposed public
benefit and/or rent ..
Groups Which have recently notified staff of their interest in
uainq the Williams property are listed in Attachme.nt CoO Statt has
not determined whether any of the listed or'9'anizationa voulcl
~lt!.ately use the property according to the restrictions of Rhona
Williaas f viII, i.e .. , for ~rk and/or cultural purposes.
Staffis experience, not only with the Williams property but other
City-owned sites, is that it is otten the .case that nonprofit
organizations proposing to use City property do not have the
financial resources on hand to cover necessary costs of
~ve.ants and maintenance 8,nd rely on the City or future tund
ra1sing efforts to provide these resources~
... II! -Il t twatt4 !taiDa fOr Preparation, Approyal 'p4
SolicitatiCD of RlI
If Council directs staff to prepare oS neli RFP for an option to
lease the Williams property, the following is an estimated schedule
ror its preparation, approval, and the solicitation and evaluation
of proposals ~
Kie! Karch
Early Kay
Council directs statf to prepare the RFP
RFP i6 approved by council
Early July -proposals due
septelll:>er -
CMR.: 139: 94 •
council reviews the Evalu~tion Committee's
recommendation and awards the option to lease
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"99.0 p4.1;i oll
It council wishes to proceed vith an RFf for an option to lease the
ililliams. property, staff reCOll!lll.ena.a that. Council provide s.taff ..,ith
direction as to what requira.ent~, features and conditions should
be included in the RFP and direct staff tOo prepare an RP'P and
return to Council tor its approval.
Respectfully submitted,
<}~ .. J1:ft(d~
JAImr F1tEELAIID
~~st
\lector of
~=
CC' Groups listed in Attachment D
Historic Resources Board
W. Davis Larsen
Margaret and John Toor
Attaa..ents: AttacblOent A,
Attachment B,
Attacbment C,
Attachment D:
summary of previous REP
Prev! OUS R7P
Policies" Proced.ures for the leased
use o~ City land/facilities
Groups interested in Williams
property
Related staff report .. : 0IR,J26,91
0IR:l0J:92
CMR: 188:92
CMR:208,92
CMR:435,92
CMR'49l,92
CMR:305:93
CKR:332:93
OIR'446:93
CMR:560:93
CMR,60e:9J
CMR:1l3:94
CIIIt: 139:94 5
Attachment A
SUMMARY -RHONA WILLI~~S PROPERrY
REQUEST FOR PROPOSAL
The Request tor Proposal (RFP) consists of I. J the Information
Flyer ~nd II~) the Proposal Package.
I. Information Flyer
The Information Flyer summarizes the offering and will be sent
to interested persons or orqanizations. The. In!'Ormation Flyer
includes the tollowing information:
A~ Minimum bid ($5,OOQ which reflects th~ estimated cost to
solicit proposals) and date the propos~ls are due (June
2, 1992).
B. General description of the property to be leased,
including a location map.
C. Statement of intent of the RFP and require~ents for use.
o. Required i~provements, maintenance and historic
preservation.
E. SWDlDAry of the terms of the Option to Lease and: the Lease
G. Instructions tor obtaininq the Proposal Package.
II. Proposal Packag£
The Proposal package summarizes the prcposal requirements and
proeedure& and lists the eValuation criteria. It includes the
Proposal Forms, Proposal ~e6tionnaire, the Option to Lease
and the Lease.
A~ Option to Lease -The term of the Option is 2 years, and
it may not be exercised \L~til the Optionee has fulfilled
the following conditions:
Paid the purchase
reilllbursed the City
soils investigation.
price of the Option and
for the $7,850 cost of t.he
2. Implemented its proposed plan for the care,
security and JIlaintenance of the house a.nd qrou!'1ds.
3. subJaitted and received approval of its plan for
removal of the underqround tank from City"s Fire.
Marshall.
4. Submitted schematic plans of all proposed
improvements within 6 months of the commencement ot
c
the option.
S. Obtained Historic Re.sources Board, Architectural
Reviev Board, Planning commission and City Council
approval of tne development plans~ Plans must
include historic preservation det~ils and City
review includes interior plans ano landscaping.
E. Obtained the llpprc'lals of the City Engineer and the
Chief Building Official of the construction
dra~ings, includinq a construction schedule.
-, ~ Obtair.ed approval of its lonq term maintenance
plans and schedule fo~ the building and landscapinq
fLom Real Property Manager.
e. Obtained any necessary zone change, permits and
environmental clearances for proposed operation and
improvements.
9. Satisfied the Director of Finance that sUfficient
funds are available to i~plement p18ns approved by
the City.
10. Obtained completion/performance bonds sUfficient to
ensure funds to complate the approved plans.
lL Paid the Security Deposit requirad by the Lease
($lO,OOO).
12. Provided evidence of insurance coverage in the
amounts set forth in the Lease.
B. Leas~ -The key provisions ot the Lease are as follows:
1~ premises: the property ar.d improvements located at
351 Homer Avenue.
2. Required uses: specific use is to be determined,
but any use shall meet the terms of Rhona Williams
will for park and/or cultural use.
3. Term: 20 years.
4. Rent: A minimUli: rent has not b!!en established. The
allount ot any monetary rent will de.pend on the
nature and value of the improvements and the public
benefit (non-~onetary conside~ation) proposed~
S. I'Aprc>'''H!l1I'lents to be made by tenant: Required
improvements are those improvements which are
identified end shown in the plans 6pp~ovea by the
City durinq the option· period.. Requ.ired
improvements include removal of the undergrcund
tank and any necessAry clean-up associated with the
tank and any necessary asbestos abatement or
caontBinment. Minimum cost of impr-ovements iii
$1.50,000.
E. confl.truction or-additional alteration by tena.nt
subsequent to the initial construction~ Tenant may
not make any chanqes to the property without prior
City review and app~oval.
s. Maintenance and Repairs: Tenant shall be
responsible tor all maintenance and repairs in
accordance with ~~e City-approved maintenance
proqram to preserve tl'll!: historic features of the
house and qarden.
e. Assiqnments -Any assiq'nment or encumbrance of the
lease must receive prior City approval.
9. Taxes and Assessments, Utilities: Tenant shall be
responsible for all costs for utilities and taxes
and assessments for the property.
10. Insurance: The Tenant shall maintain insurance
provi4inq the followinq limits and eov~aqe:
POLlCX MINIMUM LIMITS OF LIABILIty
a.
b.
c.
d.
WORKERS'
COMPENSATION Stat-utory
COMPREHENSIVE Bodily Injury
AllTOMOBlLE
LIABILITY Property Oa~age
including OtJr.ed,
Hired., and Non-
OWned A~tomobiles
COIlMERCIJ>.L Bodily Injury
GENERAL
LIABILrTV
including Property Damage
Products oI:lnd
and Completed
Oper~tions., Broad
Form Contractual
and Personal
Injury
$1,000,000 ea person
$1 * 000,000 -ea occurrence
$1, 000. 000 -ea occurrence.
$1,000,000 ea person
$1,000,000 ee; occurrenc_e
$1,000,000 aqqreqate
$1., 000, 000 ea occ:urr.:nce
FIRE AND
EXTENOED
COVERAGE
Not less than 90t of replacement cost.
" i
Rhon3 Williams rroperty rnfo~tion Flyer
L
/
,-,
, . ,
e
INFO~~TION FLYER
SUMMARY OF LE~SE OPPORTUNITY
WR.B.T IS IT?
WHERE IS IT?
WHAT IS THE ZONING?
WHAT USES WOULD BE
PERHITTED?
INSPECTION OF PREMISES:
An opportunity to ob~ain a 2-year option
to lease with a 20-yaar lease to develop
and operate a cultural and/or park
facility on City-owned property
consisting of a 4400 square foot two
story house on two parcels, totaling
30,000 s~uare feet, commonly known as the
Rhona willia~s property (see attached
maps) ~
At 351 Homer Avenue, Palo Alto.
The property is currently zoned RM-30
(Medium Density Multi-family
Residential) .
Cultural and/or park use. Depending en
the nature of the specific use, a
conditional use permit or zone change may
be required.
The property tor lease will be available
to view Monday through Friday, S a.m. to
5:00 p.m., !J.ntil .July 13, 1992. call
Janet Freeland at (415) 329-2662 to
schedule an appointment.
WHEN ARE PROPOS~.LS DUE? Proposals are due before J :00 p.m.
IS Tk~ A MINIMUM BID?
HOW DO I GE"l' A PROPOSAL
PACKAGE?
Tuesday~ July 14, 1992 and should
be submitted to:
Manager# PurchasinqlContract
Administration
City of Palo Alto, First Floor
P.O. Box 10250
Palo Alto, CA 94303
The minimum
purchase of
55,000.00.
acceptable
the Option
bid for the
to Lease i$
If, aftsr reading this flyer# you woule
like to obtain the request for proposals
and proposal package, please conta~:
Janet Freeland
city of Palo Alto/Real Estate Division
250 Hamilton Avenue, P.O. Box 10250
Palo Alto, CA 94303
(415) 329-2662
1
The prcperty fo~ lease consists of two parcels (see attached
site map). The west lot, on ~hich the t~o story residence is
located, is 100' .by 210' and the east lot is 50' by 180'.
Total land area is 30, 000 square feet (~69 acres).. 80th
parcels are cUrl.-ently zoned mlJ.l t.i-fatnili~ resiaentirtl (RM-JO).
The two storz' residence 'Was built. in 1907 and is listed as a
Cateqory 2 Signific~nt Historic Buildinq on the city of Palo
Alto Hist.oric Building Inventory~ The house is two 6"tories
with 2,566 sq~are feet on the first floor, 1,826 square feet
on the second floor, and a 600 square foot basemen~. There ie
a detached garage and carport located at the rear of the
property. A soils/tank inyestig~tion report has revealed the
existence of an undergrour.d fuel tank and associated piping
Which ~ill be th~ sole responsibility of the tenant to remove.
The soils investiqation indicates it is possible there is some
contamination from the tank on the site; however any required
clean-up also will be the sole responsibility of the tenant.
The house is in qeneral.ly good condition~ conversion to non
residential uses will require that the house be upgraded to
meet current code requirements including some structural
improvements, handicapped access. etc.; hoW'ever, the Historic
Building Code could modify some code requir~ments.
The site is adjacent to residential use on the north and west,
medical office use on the east and to the south across Homer
Avenue is the Palo Alto Medical Clinic.
:n:. MOD 1fI.LLIM8 PIlOPERn REQUIRED OSES ~ IMlROVIkIITS
A. GENERAL STATEMENT OF INTENT OF REQUEST FOR PROPOSAL
The property was bequeathed to the City by the late Rhona
Williams. Ms. Williams specified in her will that the
property be used for park 3nd/or cultural purposes, and
jt is the City's desire to lease the property under a
lonq term lease to e group or org~nization which could
improve, :naintain and operate the property "for a use
Which would fit the strict terms of Ms .. Williams' will,
benefit the City and community as e Whole, and preserve
and maintain the historic siqnificance of the p~operty ..
The City seeks a long terM tenant to improve, maintain
and operate the property so that no cost is in~4rred by
the City fer operatinq or upgrading the facility and so
that public benefit is generated for the City~
2
B, RP.ONA WILLIA}1'S ?~OPE;RTY -REQUIREMENTS FOR USE
Ms. williams' will provides that the p~operty shall be
used for par~ and cultural purposes and shall not be sold
by the City, nor leased for any parking lot or purely
commercial venture, In her will Ms. Williams also
recommends consideration of one or more vf the follo~inq
uses: I} a gene~al science library; 2) a park; or 3) a
center fer cultural purposes. She further suggests that
as many of the existing trees as possible be retained on
the property and that the land surrounding any building
be maintained as a small park. The will also requires
that the property be named as a mElmorial to Ms~ Williams'
parents, Or. Thomas M. Williams and Dora Moody Williams.
The terms of M3. williams' will generally require that
the property be used for park or cultural purposes or
some combination thereof. For purposes of this Request
for Proposals} park use will be as de~ined under case
law, which in general means a use that furthers the
publi~'s recreation or enjoyment of the land and is not
limited solely to use by particular individuals or
qroups. cultural use will be as commonly defined in the
dictionary. It will be up to the proposer to show how
the proposed use meets the restrictions on the use of the
property under Rhona Williams' will.
The City will also require that the use of the property
be of benefit to the City and community as a whole} that
it is consistent with City 90~ls and objectives as set
forth in the Comprehensive Plan ana zoning ordinance, and
that the impact of the proposed use will ~ot be
detrimental to the neighborhood, community and
eTlvironment~
C. REQUIREMENTS FOR IMPROVEMENTS, MAINTENANCE AND HISTORIC
PRESERVATION
The tenant
improvements
necessitated
will be responsible tor all
a.nd 'maintenance required by the
by the proposed use.
property
city or
Improvements ~nd aaintenance required by the City are as
follows:
1. Durinq the term of the option, the optionee will be
responSible for the care~ maintenance and security
of the grounds and house (interior and exterior).
The plan for the care~ maintenance and security of
the grounds and house is a bid item ahmg .. ith the
proposed consideration (~onetary or non-monetary).
3
2.
3.
4.
The tenant will be responsible for reirnbur$ing the
City tor the cost of the soils investigation
($7.850.00). The tenar,t will also be responsible
for removing the underground fuel tank. (currently
estim~ted to cost $12,000 to $19,000) and the cost
ot any associated soils clean-up, if necessary.
In adcHtioo l Attachment A lists tha nd nimu!ll
improvements ~nd esti~ated related costs that the
Cit.y ... i11 require for any use~ The City will
require that changes to the envelope and .form of
the houser while not precluded, be kept to a
minimum, that the floors and ~ooQ casework be
preserv~d and that the gardens be restored to the
greatest extent possible. A.dditionel information
concerning historic preser'vation of the property is
included belo'W". The total estimated cost for
required improvements described in this paragraph
and in Attachment A is $l18,520 to $1~5/52C.
Additional significant imp~ovementB and
!Iloclifications that ... 111 be necessitated by a non
resldential use of the property are not possible to
determine precisely wjthout knowing the nature ~f
the specific use. However, Attachment B identifies
in a general way the improvements that viII be
required for conversion of the property to a non
residential use. Because the property is
historically significant, the Historic Buildinq
code could ~odify some code requirements.
The property is architecturally .and historically
significant~ and the City desires to preserve as
much of the historic significance and integrity as
possible. The City has obtained an Historic
Resources Report which describes the historic and
architectural significance of tt,e structures and
grounds, and suggests guidelines and standards for
potential exterior and interior modificaticn(s) in
order to aEisure appropriate: preservation of th.e
property. This report is Attached as Exhicit III
to the option agreement included in the pr-oposai
pac~age. It ~ill be up to the proposer to show how
i~s proposed improve~ent6 ~nd modifications to the
property are responsive to the guidelines and
standards for historic preservation and
rehabilitation of the property as set forth in the
Historic Resources Report.
4
III. SUMMARY OF LEASE AND OP'I'ION TO ~
A. OPTION REQUIRL~ENTS
The .-successftl:l propos;er will be awarded a 24-mont.h Option to
Le:ase the property. _'s reflected unde:-the form of the Option
to Lease Agreement, duri~g the option period the optionee must
care foz:, maintain and be responsible for security of the
house and grounds, maintain insurance coverage acceptable to
the City, reimburse the City for the cost of the soils re!';>Ort
in the amount of $7.850.00, obtai~ plan approvals and permits
required for the proposed i~provements and modifications to
the property. including the removal of the underground fuel
tank, and obtain city approval of any zone change. conditional
use permit or any other discretionary approval that may be
required for the proposed use. City review of optionee" s
plans will include revie .... by the Historic Resources Board,
A:"chitec·tural Review Soard, Planning commission (if
applicable, and City Council vf both interior and exterior
modifications to the house a.nd landscaping plans. The Option
may be exercised at any time within the option period that the
optionee has sati6factc~ily met all of th& Option
requirements.
B. OUTLINE OF LEASE PROVISIONS
Some of the Lease provisions are hiqhlighted below. This
information is net intended to be definite but is in~ended to
provide a basic sumcary of the major lease provisions. It is
the responsibility of each prospective tenant to review the
request for proposals and proposal paCkage, end the documents
contained in the package, includinq both the form of Option to
Lease dOCllm2nt and ~~e form of the Lease, examine the economic
environment, and make such further investigation as necessary
to insure th.at he/she fully understand the natur~ of the
undertaking and the obligations he/she will assume if the
proposal is accepted. The form of the legal docum~nts may also
be subject to change and further negotiation with the City,
once the successful proposer is chosen and based on the
proposed use of the propErty.
1. Term of Lease: 20 to 30 years based on negotiations.
2. Required use: cultural or park use or some combination
thereof, based on the restrictions in R..l'J.on.31 Williams'
will.
3. Rent: A minimum rent has not been established. 'I.'he
amount of any monetary rent will depend on the nature and
value of the improvements and the public benefit (non-
5
..
..
.',.
monetary considerati~~} proposed .
.4. Improvements to bE!: ~ade by the tenant: Required
improvements are those improvements necessary to
accommodate the proposed ~se and to preserve the historic
integrity of the house and grounds and those which are
identified and shown in the plans approved by the City
during the option period. The tenant shall also remove
the underqround fuel tank. and perform any associated
cleanup O~ remediation that ~ay be necessary as a result
of the presence of the tank. In addition i th4 City is
aware that the heating d'~cts located in the basement of
the house located on the premises contain some level of
nonfriable asbestos-containing material" The tenant
shall be responsible ter any asbestos abatement or
containment to the extent required under all applicable
building and safety ~odes and regulations, inclucing any
applicable asbestos notification r~quirements under
California Health and sefety Code section 25915 et seq4
5. Insurance: The tenant shall maintain the following
insurance acceptable to the City in full force and effect
throughout the terms of both the Option to Lease
Agreement and. the l..ease. The policy or policies o,f
insurance maintained by the tenant shall provide the
following limits and cove~age, ~ith the City being named
as additional inst.lred under the policy or policies:
POLICY MINIMUM LIMITS OF LIAB~
0 .•
b.
c.
WORX!RS'
COIIPENSATION Statutor~~
COMPREHENSIVE Bodily Injury
AUTOMOBILE
LIABILITY Propert}o" Oamage
including OWned,
Hi~ed, and Non-
owned Automobiles
COMMERC! ... .L Bod.ily Injury
GENERAL
LIABILITY
including Property Damage
prodUcts and
and Completed
Operati~ns, Broad
Form Contractual
and Personal
Injury
6
$l,OOOfnoo ea person
$l~OOO, 000 ea occurrence
$1,000.000 ea occurrence
$1,000,000 ea person
$1,000,000 ea occurrence
$1,000,000 aq9reqate
$1,000,000 ea occurrence
'lOIRJ'(Y
d. FIRE AND
EXTENDED
COVERAGE
Not less thal"'\ 90'; ot replacement cost.
6. Assignment: Any a~5ignment or encumbrance of the laase
must receive prior City approval.
7. Utilities: The te!"lant shall be. re.soponsible for all
utilities supplied to the premises.
S. Maintenance & Repair: The tenant shall be responsible
tor all maintenance and repairs in accordance with a
City-approved maintenance program to preserve the
historic features of the house and garden.
9. Taxes and Assessments: The te!"l.ant shall be responsible
for all t~xes and assessments {including but not limited
to possessory interest tax).
7
Attachment A
REQUIRED I>lPROVE;MEN'fS
Carage repair/renovation'"
Termite Work
LandscapinC}
Roof patching & skylight flashing
Painting e~~erior , interior
Strip/varnish iiOOd floor
clean and oil finish ~ells
Ceiling , winQow repairs
Doer & driveway repair
Vinyl flooring-
Misc. electrical
SUBTOTAL
+ lot
TOTAL
*!t garage is retained.
8
ESTIMATED COST
.25,000
$10,000
20,000
2,500
13,000
5,000
5.000
2 .. 200
2,000
4,000
1 .. 000
89,'IQO
8,970
$98.670
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~ttacbroent B
ADDITIONAL GENERAL !MPROVEMENTS/MODIFICATIONS REQUIRED FOR
CONVERSION TO NON-RESIDENTIAL USE
1. Provision of on-site parking. The number of required spac~s is
determined by l1S~.
2. Installation of a commerci31 fire sprinkler system.
3. Electrical system brought up to code (Hi~toric Building Code
could modify so~e requlrements).
4~ Addition of second exit from second floor.
s. Existing railings at both sides of the main stairway must be
extended.
5. The b~ilding and at least one toilet room must be accessible
to the handicapped.
6. First floor joists and. foundation plates be bolted to the
conc~ete foundation and there be positive connections at beam
to post and piers.
7. Addition in the basement of a one-hour fire resisti~
construction ceiling ana eithe:-a :self-closing d,col:' or draft
prevention devices.
9
lOCATiOIl flAP
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POLICY AND PROCEDURES 1-11
P!!Ig'e 1 of 6
REV1SED: August 1990
~a pcrpose of this policy is to ensure that decisions re9a~djng
use of City property ~re made in the best interests of the citizens
and taxpayers of Palo Alto. This policy and its implementing
p:!:'Clocedures Were approved by the City council on November 23 1 1981.
The development and cplOrotion of heili ties by ethers (profit
and/or non-profit entities] on City-owned property is appropriate
enly when s\..ch d.evelopment and operAtion will furt.""ler public use or
-provide II. putllic benefit. Such faei'l1ties and operat.ions J:'Iust be
consistent with existing' City policies, plans, se.rvices an/j/or
proce~ures. open c~3petitive and/or bid processes will be used to
solicit proposals or provide opportunities to others prior to
awarding an or ~ior.. to Lease. This policy shall not apply to short
term int.ria leases where no sic;nificant change in u!:'! is proposed.
A. Criteria for Permitting Leased Use of City Propattv by Other?
The proposed leased use must be co~patible with~ incidental
to, and/or supportive of, the primary public use of the city
owned property~ e.q. a anack stand in a district park, or the
pro shcp and coffee shop at the Golt Course.
In the event of park deQic~ted la-neSt the proposed use shall be
consistent with the. provisions set forth in the Charter of the
City of Palo Alto, Article VIII, and the P~lo Altc Municipol
Coda (PAKC), Sections 22.04 and 22.08 et. aeq., vbich require
that uses ot puk dedicated land be park, playground,
recreatien ur conservation related uses.
E. Optipn to Lease
In all cases where there are significant approval requirements
(significant tenant construction and/or rehabilitation),
financinq rsquirements {fundraising drives, obtaining
financing from lending institutions t etc.}, or other tenant
pre-operation conditiDns, the Council shall "ward an Option to
Lease setting forth all pre-construction/operation con~itions
as conditions to the tenant IS obtaining the le.as-e. The opt1o~
term ahell be for a reasonable period of time consistent vith
the nature of the conditiQns of the option.
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I POLl cY AND PROCEDDRES 1-J.l
Page 2 of 6
REVISED: August 1990
Prior to ..alol'ardi:ng en Option to Lease for a specific use,
consideratior. shall be given to particular infcrm~tion.
(Specifi~ applioation and the relative import.nce of each of
the following considerations will vary from $ite to &ite end
by spacific US"" proposed). Applications for le.sed use shall
provide the following information:
1. The extent to which the proposed leased use .atisfies a
public need (e.g., by a significant number of Palo Alto
resident.s and taxpayers) for the prcp~sed services and/or
uses.
2. CensiBten~ of the proposed use with exi£tinS City goals
and objectives (sat forth in the COIr.prehens1ve Plan,
Zoning Ordinance, MuniCipal Code, and general municipal
8~rvic.~ ~bjective.).
3. Consistency of the proposed use with existinq plans tor
the property Dr facility (lO.g., an opproved Master Plan).
Tbe impact of the proposed
uses, traffic impacts,
conservation, etc.) upon:
use (compatlble services and
noise impacts, energy
•• the immediate neighborhood,
b.. the c.ommunity generally: and
c. the environment CThe proposed tenant shall, durin;
the Option period, satisfy t.~e City's environmental
review procB.~.)
5. The degree of public access, includinq City shared use of
the facility cr co-sponsorship of programs ~nd/or
services, i.e., the numbers of p2ople, especially Palo
Alto residants and taxpayers, that will be served by tbe
p~posed use and/or service.. (It is the q~neral intent
of the City to maximl~~ public access to its facilities
and services, especially if park land is involved).
6. Tbit r .. es that ..,ill be charged to Palo Alto citizens. (It
is the intent of th. City to provide public acce~s to it~
f&cili ties at prices and/or fees that are fair and
reasonable to the public. In the case of p.rklands, any
fee. and charqes should be minimum and ccnsistent with
the fees and charges c! comparable city-prov1d@d
aervlc ... )
7. Tbe monetary cDnsideration to be provided to tbe City.
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POLICY AND PROCEDURES 1-11
page J of Ei
REVISED: AUgust 1990
8. The history and assessment of the proposed qroup' S
abi11 ty to ca.;:'"ry out the construction, if any, and
operation of the facility and services as proposed.
9. A five-year pro-forma financial analysis of the propc3e~
use, setting forth the project revenues and expenses for
this period of time.
c~ P~blig Notificatipn
1. prior to awarding an option to Lease (or Lease if there
are no pre-construction or pre-operation conditions), the
city shall provide a reasonable and. appropriate
opportunity to other groups or entities to respoI".d to
possible use. of City facilities. Such reasonable and
appropriate opportunities shall take one of the following
forms:
a~ A Notice of Intent to Award an Option to Lease (or
Lease if there are no pre-construction or pre
operation eonditions) generally outlining the
conditions of the Option and Lease, shall be
published daily tor one week in the Peninsula Times
Tribune and twice in the Palo Alto Weekly. The
Notice shall provide at. least 30 clays notice to the
public prior to a pUblic hearinq fo~ council action
to a~ard the Option to Leese. In addition, copies
of the notice shall be mailed to residential
property owners in accordance with Section
18.90.030 of the Municipal Code. Generally, this
notice and hearing process shall be used when the
proposed user 1& & non-profit entity pr~posinq a
specific use providing a significa.nt. public benefit
and when it appears that there are no other
competing users~
b. A Request for Proposals will be sent to groups or
entities likely to have an intarest in submittinq a
propcsal), subsequent to a public hearing and
Notice of Intent to Request Proposals being
p~11shed in the appropriate media. At ~ minimum,
the Notice of Request for Proposals shall be
announced in the. f.gninsul,a Times Tribune and the
Palo Alto Weekly and copies of the notice mailed to
residential property owners in accordance with
Section 18.90.030 of the Municipo.l Code. The
Notice shall pr~Jid8 at least 30 days notice to the
public prior to the public hearing.
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POLICY AND PROCEDURES 1-U
Pege 4 of 6
RE .... ISED: A'J!ll'st 1990
2. In preparation for public noticing, the applicant must
provide the city Real Estate Division with:
•• ,A Zone of Interest Hap showing the property
proposed to ~. leased ~y the applicant/proposer and
showing all parcels or properties within a distance
of ~1.4 &eter. (300 feet) from the exterior
boW'll!aries of the subject property. This map =
be o~tdne~ from the Planning Department or the
~~lic Works Department, Engineering Division, at
the Civic center, 2S0 Ha.milton Avenue~ If :more
than one aap is req-.z1red to show the zone of
interest, applicant/proposer must combine the maps
into a ein91e map of not ~ore than lsn x lO~ size.
l>. A Hat of atrut addresses, ~y l>loek, for all
pr:>p"rtiBs within the zone o! inte.rest, for
example,
i:$:~&I~ H;ml Ac1~x:t!!Ii§:'s ~~e Codgi
Bryant Street 100 througb 2S1 94301
Hamil ton AVlllll.1e 203 tbrougb 373 94301
c. f%'ha names and addresses, including zip codes for
each parcel or property owner within the 91~' metar
(30el feet) zone of interest properly typed on
adhuive mailing' label ... Tbe Planning Departxoent or
PI.1l:>l1c Works Engineering Division can provide a
.ouree of suCh a~dres5e ••
d. In the event that the City is the project proponent
o~ such leased use, the sponsorinq City
department/division, •. '1. Departxoent of Community
Services, w111 provide this information to the Real
htat. Dividon.
3. To ensura that notices will be ~ailed to tenants as well
.... owners, the Real Estate Division will provide the
Information Res~urce5 Department, Data Processing, with
the list of addre.ses provided in 4~abcve and request
mailing labels for all utility accounts charged to these
addresliea.
4. The mailing lists generated by 8t~ps 2 and 3 above will
be examined ~y the Real Estate Division for accuracy and
to eliminate duplications. Notices will then be &ailed
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POLICY AND PROCEOORES l-l.l
Paqe 5 of 6
REVISED, A~gust 1990
by the Division. In the event t):"t the proj act falls
within the jurisdiction of an operatinq department, the
operatinq City ~epArtment/division, e.q'l Department of
community Services for recreational projects, will
perform these functions.
5~ The newspaper advertise.ment announcing the public hearing
shall be prepared and placed by the Real Estate Division
with the assistance of the operatinq department, it any,
involved with the project.
6. ~he costs ot co~plyinq with the above notice procedures
shall be borne by the &uccess!'"..ll applicant/proposer and
such SWII IShall be due and payable upon the s",,~ardin9 of
the Option of Lease (or Lease, if there are no
significant pre-operation conditions to be satisfied by
the proposer). In the event the city is the project
propon.ant, such costa will be borne by the sponsoring
c!epartment.
D. Ten~nt Improvements
1.. Construction of tenant improveCl.ents shall ta.ke place only
after having received Council approval (as well as
Plenning Commission and Architectural Review Board
approval when otherwise required by city procedures) of
plans for sucn tenant proposed ccnstruction. In t."'e
event of park dedicate~ lanQs, council approval shall be
by O~dinance subject to referendum (PAMC Sections
22.08.005 and 22.08.006).
2. Generally, improvements to the real property shall become
the property of the City upon termination of the Lease ..
Tanant-provided fixtu%"es sh!11l remain the property of the
tena.nt.
E.. TermS of the Uase
1. Tenant shall be required to provide City vith adequate
compensation for t.1te. rights qrante-d by City to the
tenant. Determination of appropriate consideration ShAll
begin with tba estimated fair market ren~al value ot the
lease premises tor the use proposed. consideration
shall, however, be qiven to non-monetary benefits to be
POLICY AND PROCEDURES :t-U
Page 6 of 6
REVISED: August 1990
provid.e'" by the tenant.. 'f}:,ese proposed non-mor..etary
:public benefits must be cle.arly articulated and must
provide an actual bene tit to a significant portion of the
oitizens and taxpayer. of Palo Alto.
2. Tb~ laa •• term shall b. the minimum period of the time
required to.:
B. amortize tenant'. investment in any permitted and
apprcved tenu.t c,-,nstruct1on: and
b. be oonsistent with the nature of the proposed
tenant operation.
NOTE. Question •• ~or clarification of this policy should be
directed to the Kanaqer, Real Property.
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ATTACHME/IT 0
The fDllowinq qroups or individuals have notified the Real Estate
Division of their int~rest in using the Willia~s property.
1. 8andplay Therapy and Training Institute, Inc.
a . Community Impact, Inc.
3. The Ameri~n Heritage Museum
4. The Perham Fo~~ation Electronics Museum
S. Community Breast Health Project
6. 8ay ~..rea Action
7. Konte &ella PresChOOl
8. Pam Marsh et. a1. tor a family resource center.