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Home My WebLink About0431.095• t TO: FROM: City of Palo Alto City Manager's Summary Report HONO'RAl>LE CITY CO\JNCIL CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVlCES AGENDA DATE: OCTOBER 11.1995 CMR:431:95 SUBJECf: REQUEST FOR PROPOSALS -OPTION TO LEASE ARASTRADERO PRESERVE MAIN HOUSE Ths report transmits the Request lOr Proposals (RFP) lOr the Arastradero Preserve main house lOr Council approval prioc 10 solicitation of responses, BEroMMENPAll0NS Staff recommends that Council approve !be attached RFP and direct staff 10 solicit proposals lOr the option 10 lease the Araslradero Preserve main bouse, POLICY IMPIJCATJQNS The RFP does not represent any cbrulges 10 existing City policy. EXECIJTM SUMMARY In response \() Council direction given on fune 19. 1995. and in accoolance with the City's Policy and Procedures lOr !be Leased Use of City Land/faciljties, staff has prepared the ."ached RFP for use of the main house located in the Arastradero Preserve, 'The RfP offers a ten-year option to lease and requires that any proposed use must meet the requirements lOr par!< use, the vehicle access fimitatioos of John M3I'Ihens Lane, and provide • public benefiL Improvements and ongoing operation must be at 00 cost to the City. Proposals are due December 15. 1995 and will be reviewed by • staff evaluation committee, composed of repreoentatives Irom the Departments ofPlarullng, Administrative Senices and Community C_:431," ha<lof1 • . . -~ 7 <.: ;:;*---J3j r __ «~ ... ~>--..cii:..~_'."-_'~------:--__ ... ~. " ',.;::,:- ·" " o Services, who will make a J"e('omtne!ldation 10 the City Council. Proposals will be evaluated based on: 1) appropriate park OS< and limjted veruC\llar .cuss; 2) financial viability; 3) comm..ruty and en\iroomenIaI impact; and 4) public benefit. Neighbors of the Araslradero Preser"e and aloog Jobn Martbens Lane will have the opportunity 10 review prOj>OSRls and p!O\ide commenl prior 10 their ",,,iew by tlte Council f1SC.!.J, IMPAcr Nooe. ENVlRQNMF.NTAL ASSFssME.lfi. The Environmental Impact Assessment (ElA). as may be required by the California Environmental Quality Act, will be performed in connection "ith Ibe propcsaIs l.""t staff ultimate!} presents 10 Council. AUACBMENTS PREPARFD BY, Janet Freeland, SenIDr Financial Analyst DEPARTMENTHEADAPPROYAL: b~ (l ,,-,,-,,>-«., MeliSsa Cav.1I<> CITY MAN. ... GER APPROY AL: Related StaIfReports: CMR;434:94 CMR;223:94 Acting Direc!O<, AdminjSlrati1le Services . ". ' CMR.:432:93 CMR:16S:92 CMR:42 1:1 CMR:I12:1 CMR:426:6 CMR;I22:6 CMR;413:S cc; Arastta Citizens Adviso<y C<lmmittre Bay Area ActlOfl Challenge Learning ~!er Cht1<1rens Tree House Internatiooa.l Eq~ine H_ Assoc. Mr. Bill Teny Mr . .rl1ll KeIleman Mr. Robert Bass Mr. & Mrs. Robert DavIs Mr. &: Mrs. Paul Reimer Ms. Artemas Ginztoo Mr. &: Mrs. John Yooug Ms. Marguerite Hanc<>Ck Ms. Dorodly Low Mr. John Dolmet & Ms. Katherine Bank -",. -.- City of Palo Alto City Manager's Report -HQtltfl:S~Tr-I'I'Ot)Il_-PPtlR(j(jrpPOOS1d..S -Of i IOW-ro-LEASE-rHE ARASTRADERO PRESERVE MAIN HOUSE RECOMMENDATIONS Staff recommends !hat Coun<:i1 appro,'e the attached RF P and Olfect stafflo solicit proposals jOr the kase of tho Arastradero Preserve main bouse. BACKGROlJJ\'D The Arastradero Preserve is 610 acres of dedicated pari< !and located on both sides of Arastraderc Road between Page Mill Road and Alpine Road. Located wilhin the park, about one quarter mile from tho end of JOOn Mar1hens Lane, are improvements comprised of. main hoose. a bam and. small boose (caretaker's bouse). On October 3, 1994, Council approved the demolition of the main bouse and lbe caretakers boose. A motion to approve I Budget Amendment Oromance providing funds for the demolition did not receive the required two-thirds majority vOle. On June 19. 1995, Council approved a Finan<:e Committee recommendation !hat staff issue another RFP for low-impact use oCthe ArasIradero PreseNe mam bouse and that the S90,OOO allocated jOr the demolition -. or tho Arastradero Preserve main bouse and the caretaker's bouse remain in the 1995-96 Budget, but Ihat demolition not be coosidcred until after Council had an opportunity 10 study tho respo!ISC1! to the RFP_ POliCY iMPUCAIIONS The RFP does nO! Iepre&:nt any cbat\ge 10 existing policies. DlSClJSS10N The attached RFP includes a description of the Arastradero Preserve main bouse, required information which must be included in any proposal, and • sununilIy oC the major provisions which the City typically includes in its option to lease agreements with community benefit organizations. The intent 0( the RFP is to lease the Arastradero Preserve boose aod sunounding acn: oC land for tea years 10 • group which will improve, maintain and operate · '.' . ~-' -, , . .-" ® 0 !he property, so that DO cost is incurre<l b)-the City and so that income and/or p'Jblli: benefit is generated fu< the City. In addition, any use of tile property must be coosistent with park policy and meet the limited vehicular access requirements imposed by the physical coostrBints of John Marlhens Lane and the legal settlement between the City of Palo Alto and rcsidenu aloog Jobn Marthens l.ane_ Major pr",isioos and requiteiDenls of the RFP and Option 10 Lease are as WkJws: Umjr;ujqns on t TX of the Prgperty The RFP explains the two significant IimRations on the use oft!le Arastradero J>reser.-e main house. First, because the house is located within the Preserve on dcdica~ed park land (reserved fu< park, playground, recreation andiOl" ronservation purposes), any leased facility located in the Preserve must meet the requirements of appropriate parle use and provide. publli: benefit. Soch use may not operate 10 !he exclusion of members of the public, nor interfere with the public', enjo)'mcnt of the parlc. SecOlld, the terms of. legal settlement between the City of Palo Aho and residents along John Ma.-thens l.ane require that ,-ehicle access by any occupant 0( the bouse be limited 10 that 0( a typical single family use, i.e, vehkular access 10 the house is limited 10 the occupants, their guests and the services nonnaIJy provided 10 a single family household. Access fu< conference or hostel use is not perm.tted. Bequirernent5 for Improvements and MajntenWlC( The tenan! will be responsible fu< aD property improvement, and maintenance required by the City or necessitated by the proposed use_ The bouse needs substantial repair a.'1d deferred mainlerumce. estimated 10 cost at least S200,OOO. In addition, cbanging the property to a oon-residential nse will require significant improvements and modifications 10 meet lire and building codes and the requirements 0( the American with Disabilities Act Ahhoogh it is not possible 10 deiermine precisely wbat these improvements ",,11 be without knowiJ::g the nature of the specific use, aD such improvements are anticipated to be the responsibility of the tenant. Regnjred Proposal InfocmaOO.1 and Eyaluatjop of Proposals Proposers will be required 10 provide the infurmation outrmed in Attachment B 10 the RFP. Proposals will be reviewed and evaluated fu< recommendation lo the City Council by • Proposal Evaluation COOlmittee comprised ofCity staff from the Departments 0( Planning, AdministrativeSeruces, and Cooununlty Services. Evaluation ofproposals will include the oppcrtunity fu< neighbors O(lbe property 10 review the proposals a.'!d pr<nide comments 10 CM!t:C3I"'5 Pag. S 01' -~ .- ;' ..... -. o ~j, . ,,'. . , the Evaluation Committee. NoIiees will be sent 10 property owners and residents along John Maztb<,ns Lane and m!hin 300 feet oCthe Arastradero Prc-serve, inviting them 10 review the propo,;al, and provide written comments \<) the Eruuation Committee. Pl'Op<lSals will be evaluated based on the "'flowing "'ur criteria, explained in l!Klre detail in the RFP: I) appropriate pari< = and Iirnitcd vehicular access; 2) financial ,'lability (oCthe proposer as well as the net cost 10 the Cit)·); 3) community and environmental impact; and 4) public benefit/public need. All proposal, must meet criteria I through 3 to be eligible for use oC the house. The Council will select the besI proposal based on its assessment oC the public benefit provided by any eligible proposed use. Qp!ion 10 1,eM" Once a suc<:essfu! proposer has been selected by the City Couru:il, and the option 10 !ease has been executed, the optionee has up 10 two years 10 .. thfy the option <:oodition. prior to exercising the option and entering into the lease. No ckveIopment or use oCthe site ",ill take place until the option cooditions are mel, the option is exercised and the lease is in efleeL During the option period, the optionee mllSt obIain plan approvals and permits required fur any proposed improvements and use ",'Jd must provide evideoce of sufficient finan<:es I<> implement the proposed project. The 1enn of the lease is len years; the minimum rent has 001 been established and will depend on the nature and v..tue oC the improvements and the public benefit (non-~ consideration) proposed. Required improvements unckr the lease are those improvements identifi..>d and shown in the pIans "PP"""ed by the City during the option to lease term. The terum! sball be responsible lOr all utilitiea, maintenance and repair. taxes and assessments, and adequate insunmce ~overage. !'rQw;ed Scbetlu!e K!r SoIjs;itatjoo Upon approval oCthe RFP by Council, staffwilladvertise the RFP in local De"''Papers and send copies 10 I1lose persons and groups which have expressed an interest in kasing the site. Propo,;als will be ""«pled until Friday. ~mber IS, 1995. Proposals will then be reviewed by the Evaluation Committee. llSing the criteria listed in the RFP. Eligible proposals and recommendations for • 5UC;;essful proposer will then be forwarded 10 the City Council for its review and se1ectJoo oC the successful propo,;al. The RFP explains that Cooncil reserves the righllo reject any or an proposals, or 10 ~cepl that proposal which, in its opinion, .. ill best serve the public interest. CMR:431:9S hct'oI' ---_ .. ----, , '. • ."" ..,. • •• ,:; 0 "--~.: ALTERNA1JYES Since the RFP is consistent "'1th prior C<luocil direction. IlO aI!<matives 10 approving the RFP are ~ in this report. FISCAL IMPACT None. ENVIRONMENTAL ASSfS.<iMENT An Environmental Impact As=sment (ElA), as may be required by the California Eavironmental Quality Act, wtll be petfomted in connecrlon v.ith the proposa!. that staff ultimateI)' presents 10 C<luocil. STEPS fOl,I.QWJNG APPROVAl. See "Proposed Schedule foe So!icita600" .bove. rag. 7011 : I 1 ""' 1 " L - ..J , , , I I ! I ~ REQUEST fOR PROPOSALS fOR LEASE OF TIlE ARASTRADERO PRESERVE MAIN HOUSE Th<o City of Palo Alto is requesting proposals fur the improvement and u.se of the Arastradero Preserve Main House in the Palo Alto Foo!luTh. L PROPERTY AND OYfION TO LEASE AJ\cll LEASE The property lor lease: is. S,96S square foot ranch style house buili in the Tale i 940's1early 50's. The house and the surrounding oce acre ofland are Jocated near the northwest comer and about one quartcr of. mile inside the 61O-acre Arnstradero Preserve (see attacOOllDJl!lS} The house has 6 bedrooms, 4 baths, I dini!lg ""d fiving room, maid'. quaru:rs, a .. 1IIk-in refrigerator •• Ibree car garage wi1h wotk room and a swlmming pool. The house has radiant beating and is on a septic tank system. The house and surrounding grounds are in need of maintenance and repair. Esti.mates of the costs of City-required imp",,-ements 1DIa! $200,000. Vehicular access 10 the proper\)l is off of AlaslraderoRoad via • private road known as John Martbens Lan.. John Marthens Lane is a narrow, unpaved, quarter-nule long road which also provides access \0 other =idences adjoining it (see below lor more detal1s regarding access 10 the property). The City is offering. two-yearoprion 10 iease with .10 year lease fur the property. Once the Cay OJuncil has selected its preferred proposal. the specifi<: Ierms of the option 10 lease: will be negotiated with the proposer. Attachment A includes • summary of the maj"o< provisions whiell the City typically includes in its optioo 10 lease agreements wi1h community benefit organiz3tioos. J1I. REQUIRED USES A.'W IMPROVEMENTS A. INTENT Of REQUEST FOR PROPOSAL The ClIy seel<s along term _ 10 improve, maintain and operate the property so !bat no COS! is incuned by the City fur the operation 0< npgrading of the facility and so !bat inoo= aodIOI" public benefit;' generated fur the City. Ile<ause Ille property is dcdicaled par'dand within the Arastradero Preserve, any """ must be consistent .. ith pari< policy. In addition. the proposed use must meet the limlted vehicular access requirements imposed by the physical constraints of John Marthens Lane and the legal settlement betwe<n the City of Palo Alto and residents along John Marthens Lan.. • -. I. ": : ,. 1. '-'. , - ',---.- .>,' : -,-.': -' "~::>l:-.. '-c· B. PARK POLKYJARASTRADERO PRESERVE The park dedication oromance M tile Arastradero Preserve resa ..... the land .. ithin the park h"park. playground, re<:reation andIa< cooscrvation purposes" (FAMe 22.08330). In genora!, aleas<d facility located 00 park-<ledicated land must be an .ppropriat< park use and provide. publk benefit. The use may not oper>t< 10 the exclusion ofmembers of tile pubfic no<interfere with the publk', enjoyment of ihe park. O,lL'1s have upheld the US< of .tmenlle. in pazb fur various purposes as long as the structure is-designed for ccrnnlunity rel..'1'Utkm a.nd enjoyment and some dei!"'" of geoeral pubne access is maintained. C. LIMITED ACCfSSI ARASTRADERO PRESERVE Tenns of. legal setIIemen! between resideol! along Joho Marthens Lane and the City of Palo Alto xequire that the verucle access requirements of any occupant of the Arastradero Pr=ve House be funiI.-d '" that of. typia;! single farruly use. In otller words, vehicular use of .John MartheIl5 Lane SO access the Atastradero Preserve House is Iimite<l1O tile occupants, 1h<i< gue.ts and 1h< s<nices nonnaDy provided '" • single family bousehold. Daily vehicular access by people unfumiliar with t!Je rood is not 10 be pennittc:d. For instance, access for conference, program Of ho5tell.!Se is 00( permitted. There is I gole '" 1h< Preserve at the point Jobn Marthens Lane enters the park (se<: map). This gate mUSl remain locked except for those times that an a.,..boriud per.;on(.) enters or exits from 1h< Preserve. D. REQUIREMENTS fOR IMPROVEMENTS "''ill MAINTENANCE The Ienaol will he responsible fur aD property improvements and mAiJ:tenance required by the City or necessitated by the proposed use. The house is in need of substantial repair and deferred maintenance (estimated 10 cost at least $200,(00). In addition, adaptioo of 1h< property to • non-residential use will require signifi<:ant improvemen!s and modifications '" meet fire and bui1<fmg cod .. and full compEance '9.ith tbe requirements of1h.e American with Disabilities Act (ADA:>-Although it is not possibJ:= 10 detenn1ne precisely '9111at these improvements Wl-U be without knowing the nature of the specific use. any such improvements ~i11 be the responsibility of the t<nanl .... • -.- ' .... • '-. "'-. m PROPOSAL REQlilREMEJloTS AND PROCEDURES A HOW TO S\.JBMlT A PROPOSAL In order 10 submit your proposal you must; J. Provide I "n= doscriplion of the prop<><ed project as indicated in the attached PROPOSED USE A"iD DEVfl.OPMENl OF PROPERTY (Atlachme.tll B). 2. Provide the financial information requi.-.d in the ettacbed fl!'!ANCIAL JNFORMA TJON (Attac!unent c). 3. Return the completed propooal in I sealed envelope befo~ Deccmoo IS, 199510: Bill Fel!man City of Palo AItoIR.eaI Property Di,1slon 2SO Hamiltoo Avenue, PO Bo.10-2SO Polo Alto, CA 94303 (41S) 329-2471 Propo<ab ate doe before 5:00 pm, December J 5, 1995. robe considered proposals must be "",eivod prior to Ihls time. B. REQUIRED PROPOSAL lNFORMA TJON AND EVAWA TJON OF PROPOSALS I'R>posals wiD be reviewed by an Evaluation Committee made up of repres<ntatives of City staff from Planning. Real Estate, and Community Scnices. Evaluation of propo.a!. "ill include the oppcrtuniry lOr neighbor> of the property 10 review the proposals and provide .:omments 10 the 'Ovaluatioo ComnUttee. A review of proposals shall consider many factors, including, but DO( limited 10, the following information v.tkh must be provided in each proposal: I. Approprl* Pan Use &. Limited Veblcular Access The extenIlo which the proposed use is an appropriate park use and meets the Jimited vehicular access requirements of 10hn Marth ... Lane (see above Section IIl, paragraphs B and C). Please 00f< llla~ as S1ated above, 00 private use of the building Wl1! be pennjued, i.e, for purely residential use "ithou! any public accesslbenelit. o 2. Financial Viability (ofth< proposer as weD as !he net cost 10 the City) Evidence ofth< pro_'s ability 10 finance Of 10 obtain financing ~ tbe required improvements; ~ ofth< propo=',long term finandal stability and ability to undertaic.e complete responsibility JOr all costs associated v.ith the improvement and opetaOOn of th;, proposed facility and services; and !he bistO<y and assessment of !he proposer's ability 10 <any out 1M proposed improvements and operate th< facility and services as proposed. 3. Comm<lllity and Environmenlal impact; Consistency of !he proposed use with existing City goals and objectives (as set lOrth in !he Comprehensive Plan, Zoning Or~. and M<lllicipal Coder. 1M impact of !he proposed use upon !he immediate neighbothood, the community generally and !be environment 4. Public BenefitlPub5c Need The extent 10 which !he proposed use provides public benefit and satisfies an identified public need; !he degree of pubnc access, i.e, the number of people. espe<:iaD) Palo Alto residents, who will be served by the proposed use; and !be fees that will be charged, if any. All proposals, Iogelller with (he Evaluation Committee's recommendations IOC. suc<essfuI JllOPO><'. will!ben be forwarded 10 the City Counc~ IOC its selection of!he successful proposal All proposals must meet criteria J lbrough 3 Ie be eligible for use of(he Ara..<traIJcro Preserve House. The Council will select 1M best proposal based on its assessment of !he degree \0 which lilly eligible proposed use provides public benefit or meets I defined pobnc need. The Cily Council ,ese,ves the right \0 >eject any and aD propos3Is, for any reason 0< foe no reason at an. or 10 accept that proposal which. in its opiIUon. ll.ill best sen'e the pubilc interest ] _ ~ 1":J\AA.S!]IA;l ., ATTACHMENT A SI iMMARY OF I,MSt: AND OPTION TO I,Et!,SF, On<:< the City Cloneil has sekct<d its preferr,d proposal. the 'p,dlk temlS of the option to !ease ",ill be negotiated willl the proposer. The IOOowing is • summary ofLOe maio< prov'.sions .. 1Uch the City typkall). includes in its option'" !ease agreement> with «>mmunit) benefit organi:zalions, OPTION REQUIREMENTS '!'be S'xcessfuJ propo<er will be awarded • 24-month Option to Lease the propeny. During the option period the optionee must obWn plan "wrov>1, and permits required fur any propo5ed improvements and modifications 10 the property. and obotin City approval for any conditiooal use pennits 0< any other discre1looaly approvallhat may be required fur the proposed use. City review oflhe optionee's plans will include reviev.l>y the Archit<ctural Review Board, Planning Commission and City Co1,lIl(..-il. DJr.:ng;he option period tbe optiocee m~ also provide evidence of sufficient finance. 10 implement the propt'Std project. Th, oftien may be exercised at any time .. ;!hin the option period that the optiooee has satisfaclorily met all 0( the Option requirements. OUTLINE OF LEASE PROVISIONS Map Lease jlMiisions "0 bighlighted below. '!'his information is not intended '" be comprehensive or definite but is inleDded 10 pro,ide a basic summary of the m>jor lease provisions. I. Tenn of Lease: lOy ...... 2, Boquired we: Park related with Iimlt<d vehicular aocess J. Rent A minlmwn rem bas no! been established. The amount of any mooeta,'Y rent will depend on the nature and value of the improvements and the public ben<fil (non-ID<ln,tary consideration) prop<Yoed. 4. Improvements to be maJe by Ihe T cnant: Required improvements arc those improvements necessary 10 accommodate Ihe prol"J"<d usc and those which are identi£ed and shown in the plans approved by the City during the option period. In addition, th, City is aware that the house cootains some level of non-friable asbestos-containing material. The tenaot shall be respcnsible for any rasbestos abatement or contrlnment 10 the extent required under an applkable building and ..rety codes and regulations, includ"mg any applicaole asbestos notifkatiOD reqUlJ'eIDents WlCer Californi. Health and Safety Code section 25915 et seq. S. Insurance: The tenant shall maintain insur.mce ",overage acceptable \a the City in fun -K>rce and effect throughout the t<nns oflhe uase. o ,. Un1itles', The kMnt stall ~ responsible for all utilitks supplied 10 the premise .. •. MainletlL-.:e A; Rep"ir. The ,."."t shall !Ie responsible foe all mamtco.aoo. and rep.u.. 9. Taxes and Assessments; The tenan! shall be responsibl. fa< all taxes and assessment! (lllCluding but IlQllimited 10 possesSOl)' interest tax}. • ATTACH,\IENT B PROPOSED USE AND DE}'EWPMENI OF PSPPERD" Provide & deocription of~our prcposcd use and improvement ofth. property. This d<scnptioD can be of any length and must irn:Juck all of the foDowing information: I. Proposer'. 1I8l!1e, address and lc1epbone ~CllDber. 2. A descrlption of your ~ plan for improvement and operation of the propos<d "'<e. 3. How your proposed use is appropriak fur pari< dediCO!ed land and provides • public benefit. Sho ... how you< proposed usc and operation .... ill be open and """,,<sible kl the public and will O<J( interfere "ith the public', eny,)OIlelll of the park. 4. How your prnpused nse satisties the condition that vehicular 1nIlfJ<: OD Jobo Marthens Lane be kept 10 I minimum. Descno. in detail the vehicular access requirements of your propu<ed use and IMJw you plan kl keep vehicular access kl the proposed facility 10 4 minimum. S. A de<cription of the improvements and repairs 10 be performed 10 tl-.e P"lP"rt1 as requmd under Section n (0) (2) of the Request for Proposals. 6. How yo<> plan to finance the proposed capital impro~ and oo-going maintenance and operation of the proposed use. 7. How your proposed use is consistent with City goals and is not detrimental to !be neighborhood, C<lmmunity 0< environment. I. How your proposed llSC "ill satisfy a public need and beDenl the City andfO£ community. 9. Describe the duration and exknI of your expcrienc<: ",ith special emphasis upon experience dl=."1Iy related \D the improvement and managemeut of the type of operation proposed for this project. Abo descno. the pertinent experieoce of the persons .. 110 .. ill be directly involved in operatiOD and/or management of the operation proposed tor this project. 10. AD of the information required under Section ill (B) of the Request for Proposal$, ·REQ~.J1RED PROPOSAL lNfORMA TlON AND EV ALUA TlON OF PROPOSALS." 1. ". Q A IT ACHMENT C FINANCIAL INIORMA nON II. FINAJ-<C!AL STATEMENT Attach comple!< financial statements, prepared in accordance with generally """"pled accounting principles, relIecting yoor curmll financial condition and that 0{ the previous th= years. The report must include • balance sheet and income statement and must be prepared by • certified public accountant You must be prepared to sub<lantiate all i.n.J.cormation shown. I I 1 ,. () i ! .. • --........ -.. _.- PRESER,® ~-: ,..,.. """ !FlII'~~ _r ..... ~'W;,-__ ·h • ., th.i; Jolin I'Ibrthe li!!nt , • :--:-'l'.<~:.. .. '~ , .... --