HomeMy WebLinkAbout0206.094.t~staH W ""'1'01 t __ · ________ -,
Marcll 31, 15194
HONORABL& CITY COUNCIL
palo Alto, california
Attention~ Policy and services CQr.~ittoc
lofernbers of the COUl1ci,l;
The purpose of this report is to propose that, tnrough the
development of three prototype Request for Proposal (Rf'P) packages,
a single RFP be developc-d contai.nlng critoria and a weigh.ting
mechanism for evaluating the criteria, ;"'hich allows t.he council to
select a use tor the WilliaT::1s property, located at 351 Homer
Avenue. staff proposes that Council direct 0, staff COflllllittoo,
composed of representatives from the F.lnancG, Platmin9', C01l'\munity
services and Publ'ic works Departl!l:ents, to pr(!p~l'a the three
prototype 'RFP's; or that counoil appoint ",n ad hoc cOia.·dttee,
composed of repref10ntativee from tho Human Resources Conmissioh
(KRC), HUman ResourCes Board (HRB) and Planning commis,ion. staff
is also r.ccomrnendinq approval of som.€' interim expenditures which
will maintain and protect the house ""hile another RFP procoss is
pursued.
bsltground
On December 13, 1993, Council passed a motion to refer to the
policy and services committee (P&S), the issue of an RFP for the
Williams property and "a more precise definition of-the proposal, II
and directed staff to return with a Budget Arnend~ent Ordinance for
the appropriate funds to provide for continued maintenance of the
property. On January 18, 1993, council approved a Budget Amendment
Ordinance for $4,500 in additional-funds to maintain the property.
On Fehru;:u:y 15, 1994, P&S passed a "frlotion to direct staff to defino:
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an alternative process, which would enable council to ~Gtabllsh a
more precise definition of ",hat it ,'anted for the willi.m.
property.
Iropooed Process tor D.term~~rere~red Usefs'
Staff proposes} through the construction of three prototype RFP
packages', to develop a slngla Rf'P containing criteria and a
weightinq mechanism for evaluating the criteria, ~hich YoUld Dllo~
the council to select a use for the Williams house.
Specifically, staff proposes the construction of three RFP packaq~s
which. reflect the follow:f.ng options: i) relativl) ernphasis on
historical preservation over public use or meeting a defined public
nee.d; 2) relative emphasis on public use or meeting a def,ined
public need over historical preservationj or 3) balancing the
desire for' some lavel of historical preservation with the desiro
for accommodating a public use 01." meeting a define.d public need.
All proposals would have to meet the rcquira~ento of Rhona
Williams' will, which re8;tricts t.he use of the property to park:
and/or cultural uses. The RFP would require any proposer to show
}tow the proposed use meets the conditions of the will. 'the RFP
would also require that those proposing questionable uses may bo
required to submit the opinion of a private attorney as to how the
use ~eets the will requirements.
Once a proposal qualified in terms of meeting the condition~ of the
will, it would then be evaluated using tho following criteria,
which would be weighted differently in each RFP, depending upon tho
main emphasis of the. RFP. (The following criteria includo tho
considerations required under the City's Policy for Leased Use of
City Land/Facilities.)
L .. Historic Preservation
The extent to which the proposal is responsivQ to the
guidelines and standards for r~habilitation for historic
pr&servation of the property, as set out in the Hist.oric
Resources Report and in accordance with the secr~tary of the
Interior' So Standards for Rehabi) itation of 11istoric
properties. Specific historic preservation expectations for
the exterior and interior of the house and the gardens should
be addressed.
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2. Public Benefit/Defined Public Nee'rJ
The extent to which the proposed use provides a public benefit
and satisfies an identif;ied"public need; the degree of public
access" )::6., the. number of people, especially Palo Alto
residents, who wAll be served by the proposed USC; the Caes
that will be charged to Palo Alto citizens, if any. specific
public needs or benefits ~hich are considered important could
be identitied.
3. Financial Viability {of the proposer, as well as the net cost
to the city)
Evidence of the PL"OpOSer's ability to finance or to obtain
flnancinq of the required improvements; the history and
asaessment of the proposer's ability to carry out the proposed
improvements and operate the facility and services as
proposed; the five-year pro fOrJtla analysis of the proposed
usc; the consideration (monetary and non··monetanr ) to be
provided to the city. The degree to which the City will oc
will not participate in costs should also be addressed.
4. Community and Environmental Impact
Consistency of the proposed use with existing City <joals and
objectives (as set forth in the Comprehensive Plan, 20ning
Ordinance, and Municipal Code); th~ impact ot the proposed
usa upon the immediate neighborhood, the community generally
and the environment.
Attachment A provides jE!xarnples of relative weighting for the three
prototype packages. For example, the purpose of Criteria Package
1, w8~9hted to emphasize historic preservation over public benefit,
would be to result in a usa compatible with rninitnal changes to the
o)(isting cnaracter and features of the property, which would
provide publio benefit and access, but 'Which mayor may not meet an
identified ,p:.Jblic need. Such uses might include museum use of the
house, and park use of the garden. The historic preservation
criteria should be specific enough to indicate to a potential
proposer the city's expectations for the preservation of the
property 1n terms of the relative importance of preserving the
exterior of the house, the interior of the house and the gardens.
The purpose of Criteria Package 2, weighted to emphasize public
need and benefit over historic preservation, would he to result in
a use whioh satisfies an identified public need but which might
require more significant changes to the historic features or
character of the property, such as a building addition or the
removal of interior walls. Specific public needs or benefjts which
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th-&: CQuncil considers important could be identified. This package
{as ~ell as packages /1 and 13) should also specifically ~ddreS9
the City's expectations for the preservation of, the properly in
terms Of the relative lfl1portance of pre,!;;erving the exterior of the
houso, the interior of the' house and the gardens.
Package ) vould weight historic preservation and public need more
(lql-tally i its purpose 'Would ba to achieve a balance between the
lovel of historio preservation and accommodating a public need.
In all three packages, the issue of the city's ~xpectation9 for the
tinanciol vlobil1ty of the proposal and the de9ree to which the
City m~y or may not participate in th& costs for development and
op,or.ftition of the property should bo addressed. The city's
~rticipation could depend on the degree of public benefit and/or
h1$toric preservation of the proposed use. The RFP should attempt
to achieve a balftnce betwoen the monetary flnd nonmonetary benefit
provided by a proposed use, Le., t.he less public benefit to the
CitYt tho ~ore ~onetary benefit to the City would be required.
Staft proposer:. t'ttlO options for structuritlg the process for
construction of the RFP packages:
1. staff pl;epares package options and returns to P&S or City
counc.ll.
This option would rely on a staff tcam l comprised of
representatives from various departments, including Finance,
Planning, Public Works and Community services to prepare
package options. This option would most likely require loss
till'e than option '2 (4 to 5 months) j and when staff returns to
Council with the three prototype packages, a public hearing
could be held to provide the opportunity for public input.
2. Council appoints members of an ad hoc 'committee, composed of
two, members .of the HRB, two mere.bars of the }iRe and one me.mber
of the Planning commission, to work wIth staff to develop RFP
package options.
Notices of ll',eetings and aqendas would be provided to all 'Who
express an,: interest in participating in determining the
preferred use tor the Williams property. This option may
require tnoro time than option 1; however, it expands the
opportunities for public involvement early in the RFP
development process.
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&\YAnt_~t..mpotled PrC984'
Ths proposed procesa addresses l!1~ny of the issues and concepts
bro\lght fortt. in diecu8910ns at the February 15, 1994 P&S meeting,
89 folloW's:
1. The conflict batwoon the 90a1s of public benefit and historic
preservation.
2.
Many commonts at the I'lcetinq concerned the necessity for
re801v1n9,~arly on the potential conflict betwe~n qo~ls for
publ1e benefit and h.!ato);"ic proGorvation. For .instance, an
-effort to presll:!r-vo thO' property tirst, before considering
future use, could result in nakinq thO' 'property unsuita.ble for
certain uses ~ootin9 a pOblic benefit objective. By the same
token, it \lse is deterl'linec! first, histo1;ic preservation of
the property could be dirsinishnd duo to the specific interests
and needs of th~ user group.
The proposed procQss \lill result in prototype RFP packages,
eac:h 'Wci(j'ht:inq the conflicting Ilse9 of histot:' lc preservation
and p\lblic usa in a diff(:!rcht way, which can be presented to
th-a Council. council can revic ... • the pack.agee, and by
oelecting one, give a clearer picture of what its specific
objectives are for the property. By enabling the Council to
give l'lore specific direction ~bout 'What it wants to see happen
with the property, this process ma~' prevent the conflict in
903;19 tha,t occurred with the previous RFP.
Monetary burden on the proposers
The cit.y's requirelumt that the property be developed and
operated at no not cost to the City was soon by many as being
onerous for potential proposers, resulting. in the RFP being
exclusive rathar th~n inclusive and resulting in the
hist9rical and financial aspects coming into conflict.
Sugq:estions included exploring City involvernElnt in costs,
related to tho degreo Of public benefit de.rived and the degree
to Which 'the use. would t,ouch a large segmont of ,the community.
In other words, the city;v~uld participate. more in a project
involving wide coml!lunity benefit than one Which did not~ The
proposed process calls tor the issue of the City'S
participation in costs to be addressed in the prototype RFP
packages and rocommends that the participation be related 'to
the degree of ,public benefit received from the proposed use.
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3. More precise definition of the goals for the property
Commonts ware nada at the February 15 P&S meeting concerninq
requirements of the previous RrF being too broad. Thu
p~oposed method will result in a more specific definitiQn of
goals for th~ property, by providing for more definition in
terms of use and historic p~esarvation and by woighting tho
relative import~nce of various criteria.
4. Clear public benefit to the comrounity
One concept ,emphasized .in the ~iscussiollB of I\n altornato
process for determining ~ uso for tho propo~ty was that there
should be a very clear puhlic henefit to the cotMlunity in
whateve.r resulted. This would also be 1n accol"danco with the
emphasis placed on public benefit and access and cot\n\mity
noed in the City's policy for Leased Use of Public f~cillties.
The proposed method includes public benefit as one of the four
major criteria and enables the Council to select the degree to
which it 'Wants to both define and elitphasiz~ this criteria~
5. consistency vith CityJa Policy and Procedures (01' I.oa6od Use
of City Land/Facilities
Members of P&S requested that the city Attorney revie .... any
proposed alternate process to determine \rW'hether tho pt"OGCSS
meets the requirements of the City's Policy and Procedures for
Leased Use of City .Land/Facilities or whether tho process
w~uld require modification of the policy.
The Pl;oposed process meets the requirel!lents of the Clty'G
policy and would require no modification of the policy.
Impact of proposed Process
The e:hort-term impact of procoedinq vith the proposed proc~ss for
the Williams house, as a priority project, will be ~ delay' of at
least one month for Real Estate staff to return to Council with a
recommendation on the Chuck Thompson site proposals (preyiously
scheduled for April 1994)~ Longer~term impacts include the need
for additional resources in the Real Estate DiviSion, should tho-ad
hoc committee be/formed (Process Option 12); and the need to care
for the Willj..ams property while the city seeks a tenant.
If the ad hoc cOllU'llittee option is used, aSGuminq Real Estate
Division staff will be required to act as liaison to the committee,
additional staff assistance may be required, depend"inq upon the
outcome of the Chuck Thompson site proposals a~d Arastradero house
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assignments. Estimated cost of the addition"l staff assistance .is
$7,300 to $10,~OO (part-time clerical staff for 6 to 9 months).
An alternate process" to select a use \or'ill take m.onths, and even
after an option to lease is awarded, the, house will need care and
maintenance during tho two-year option period~ The previous RFP
required the optionee to take responsibility for the c8Ire and
maintenance of the property during the option period. However,
because the process to determine a use ha!i taken longer than
anticipated, staff now recommend's that Council direct staff to
pursue getting a residential caretaker for the property, for
security and to prevent further deterioration. In addition to
providing needed care and security for the property sooner, havil1g
a city caretaker will relieve the optionee of an additional
responsibility during the option period and thereby reduce the
financial burden placed on the proposer. Items necessary to blJ
done to make. the house habitable and to retain a caretaker are
listed on Attach-rrlent B, with the associated esti'r.lated costs. 'rotal
estimatcd cost to g~t a caretaker is $9,700~
Staff also rp-conunends Council approve funds to complete lllinirnal
maintenance and k'epair of the house: and to remove the underground
tank on the property. Due to the unexpected amount of time it has
taken to find a user for the house, sta:r.:: t'ccommends the city not
delay any longer certain minimal T1Iain~.enai1ce and repairs of the
house, which are listen in Attachment C. In addition, staff
re.commends the city remove the underground tank on the property.
Removal of the tank and possible contamination cleanup have been
identified by the previo~ts and potential proposers as being a
particularly onerous requirement because it is a major, but
undetermined, cost associated with the property. In the case o(
both the Peninsula Conservation Center (PCC) and the Lace Museum,
proposers requested thQt a maximum of $25,000 be put on the
tenantls responsibility for the cost of tank removal and any
cleanup that may be necessary. !n hoth cases, the City Council
allowed the $25,000 maximum and agreed to pay any cost over $25,000
up to a maximum of $50,000.
The. city has funds available in a Capital Improvement Project (CIP)
for remova,1 of onderground tanks on C:tty property. These funds
could be utilized for the Williams property. The 1991 soils
investigation report estimated the cost to removo the tank to be
$12,000 to $19,000. The report also indicated it was unlikely, but
possible, that there may be contamination fr9m the tank on the
sitej however, this cannot be detel'mined until thE?! tank is removed.
Total estimated cost for the deferred maintenance and underground
tank removal is $21,250 to $28,250.
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staff recommends that Counoil:
1. Direct staff to proceed with the above-described proposed
processes for determining a use(s) tor tho Williams property
(construction of 3 RFP packages). indicating its preferred
option for structure (committee or staff option);
2. DirElict staff to pursue gotting a resiQ.ential caretaker for the
Williams property;
3. Direct staff to complete necessary short-term maintenance and
repairs to the property ar.-1 remove th·e underground t('l;nlq and
4. Direct staff to return to Council with a Budget Amendment
Ordinance to cover expenses associated with a residential
caretaker, maintena.nce, ant~ removal of the tank.
Respectfully submitted,
(yt~=t"1C~ __ _
cc: Historic Resources Board
W. Davis Larsen
Sandplay Th~rapy & Training Institute
Community Impact, Inc.
Child and Family Resource Center
The Perham Foundation -Electronics Museum
Communit,Y Breast Health project
Museum of American Heritage
Bay Area Action
Monte Bella Preschool
Pacific Art League of Palo Alto
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Attachnnts,
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Attachment A, Examples of Relativ<> Weighting of
Criteria
Attach~ent B: Estimated
Car.etaker
Costs Residential
Attachment C: Estimated Costs -Trash Removal and
Deferred Mainten~nce
R~lated "taCt reporto: CKR,326'91
(HR, 103,92
CKR, 188,92
CKR'208'92
CMR, 435,92
CHR,493,92
CMR,305:93
CMR,332'9J
CMR, 446, 93
CKR,560,93
CHR:608,93
CHR:113:94
CMR,139,94
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Mt.chml>nt A (I of 3)
EXAMPLE or REl~TIV[ WEIGHTING EMPHASIZING
HISTORIC PRESERVATION
Pwposer: _______ • Raw RaUng 11010 (10 I.b •• ,)
-:a:~:;;:~-·--~=,=~~_~~~_~--~-~:~~~---·--r~~o~;.'~--L--~.lrul;~----_
~blf<:Be n:~O~'~ -;:~,~ no;;;;---2.t "'_ '~" '_ ~ _______ ~ I~~ _ -!_~ _~_
Degree or publfc acr,..ess I I
HiSIO(te PfeSClvaticlfl 3.5 . .'i,"-tOlAI
Fee~.ch~.'.ged III
EXlerio; 16',
rnteriOl
GardtJn
~-~---------------------------
r-inanclal Vjabllity
El1d1Jnw or abilily
History & aSSt3 ssmen\
FiV$ ~ea.r pro forma
Conslderalbcn to Ci ly
Community & Envirollmentat fmpaCI
Consfsuml with CiI)' goals
Impact on oaighborhooo elc. ----------------------------
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___ ~ ~ __ 9L!"'_e:_I.9!!r~~_§cOfeL . ___ . ____ . _, ____ _
---------~-----------------
<. r _
\~.iohi,a--
____ §W_ro ___ _
,~tt.chment A (2 of 3l
EXAIIPLE Of RELA'rI VE WE I GHli NG ENPHAS I ZING
PUBlI C BEHf.fI T
PRO~OS~L EVALUATION
P'roposer: _____ _
E .... aluatlon Criler~I.,-___ _
PUblic Benelit
------_._-----------
Mo~ Is public need
Degree 01 public access
Fee s charged
Historic Pmservalion
EKIOrioJ
Interior
Garden --------------------
Pi nanclal Viabi liey
Evidence o~ .ability
History & nssessment
Five year pro forma
Consideration to City
Communily & Erwifonmenlallmpact
C<lnslSl8m wilt! City goars
Impact on nOig;hborhood otc. ---------.-----------------
"."
Raw,RenJog
Weight
3.5..% total
25..%I01al
12X
I 8%
5t
-I 2..0.%lolal
I
1
ZQ.% tot,t
:~:,;,:~"J-...J
--------------.-------------------.-----,--.----
t',
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11010 (10 "0051)
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Attact,ment A (3 of 3)
EXAMPLE OF RELATIVE WEIGHTING BALANCING
PUBLIC BENEFIT & HISTORfc PRESERVATION
PROPOSAL EVALUATION
Propos9'; ___ _
Hfsto;ic Preservation 4.2.% tolal
Exterior 12%
Inter!!}f 8%
Garden 5~ -----------_._-----_ ..
Finantlal Viability
Evidance or abllily
History & aSSeSSm6n1
FJve )'ear pro forma
Consideration to Cily ----.----------------------,-----
C{)mmuni.ty & Environmentaf Impaci
Consistent with City goals
Impact on no:ghborhooo etc . . _--.-------.-------------
tffi % lotal
2,S.%IOlol
TOTAL
OVERAi:U;COR'C'
,,',
Raw Rating 1 1010 (10 Is bosl)
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A't tachment B
ESl'IHATED c()STS lISS0CIA'rED WITH RESIDENTIAL CARETAKER
Garage & house cleanup of trash
Chi~neys checked & cleaned
service water heater
Install sm~ke detectors
Flush water lines & treat sewer line
Toilet repair
Hew furnaco & removal of furnace
fuel oil tank & piping
House & window clt~ning
Clean & bUff wood floors
'.&st1mated CQ~
$1,500
200
100
250
300
50
6,000
850
450
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Attachment C
ESTIHATEJ) COSTS -TANK REJ!OVAL & D&FERRED MAINTENANCE
Re.ltOvaI of undergr<HHld t.'lnk
Roof patching & "sl<yl1ght flashing
Misc. eloctrioal
EstimS'tad Cost
$12,000 -19,OOQA
$ 3,000
1,250
5,000
$ 21,25~ -28,2~
-Estimata does not includo the cost of any clean-up of
contamination that may be rlccessary.