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HomeMy WebLinkAbout11/17/1992, 4A - REQUEST BY THE CHILDREN'S MUSEUM TO EXTEND THEIR CURRENT AGREEMENT FOR USING CITY OWNED PROPERTY LOCATED AT 1010 NIPOMO STREET AND RECEIVE CONCEPTUAL ENDORSEMENT FROM THE COUNCIL FOR A PERMANENT MUSEUM SITE MEEnNG DATE: city Of san .Is OBIspo .11 cfz COUNCIL AGENDA REPORT ITEM NUMBER: FROM: Ken Hampian, Assistant City Administrative Officerl f Prepared By: Deb Hossli, Administrative Analyst-1 SUBJECT: Request by the Children's Museum to extend their current agreement for using City owned property located at 1010 Nipomo Street and receive conceptual endorsement from the Council for a permanent Museum site CAO RECOMMENDATION: 1. Authorize the Mayor to execute a three year agreement extension with the Children's Museum for the continued use of 1010 Nipomo Street. 2. Conceptually endorse 630 Monterey Street (City owned parking lot #14) as a permanent site for the Children's Museum pending: (A) approval of the Downtown Design Plan; (B) a need to relocate triggered by the Little Theatre beginning construction of the community theatre on the Nipomo Street site; and .(C) development of a mutually acceptable agreement for the value and long term use of 630 Monterey Street. DISCUSSION: Background In January of 1990, the City Council entered into two separate agreements with the San Luis Obispo Little Theatre and the Children's Museum for the future use of City owned property located at 1010 Nipomo Street (formally know as the 'old transmission shop"). The agreement with the Little Theatre authorized use of the Nipomo Street property for the construction of a 300 seat community theatre. Because the Little Theatre's construction schedule did not project breaking ground until winter of 1992 at the earliest, the City entered into a second agreement with the Children's Museum. This agreement allowed the Children's Museum to use the Nipomo Street property to operate a "hands on" museum for children until the Little Theatre was ready to begin theatre construction. As previously mentioned, when these agreements were negotiated, it was projected that the Little Theatre would be in the position to begin construction of the theatre in the latter part of 1992, with completion scheduled for July of 1993. As such, the Children's Museum agreement was set up to expire in June of 1992 and included provisions to extend the agreement in three months increments depending on the Little Theatre's fund raising progress. Since execution of the agreements, however, the Little Theatre has concluded that their projected construction schedule was.too ambitious. As a result, Little Theatre representatives have been working with staff to revise their agreement establishing early 1998 as a more realistic ground breaking date (The Little Theatre revised agreement is covered in a separate item on tonight's agenda). ►r�►�ii�iIIIIIIIIP ��llll city o f 'san 1v qs OBIspo COUNCIL AGENDA REAR' Given the Little Theatre's need to forestall their theatre ground breaking date, the Children's Museum has requested (See Attachment 1), with the Little Theatre's concurrence, to extend their agreement for a period of three years, with opportunities for one year extensions, depending on the Little Theatre's fund raising progress. Given the success of the Children's Museum since its opening in September of 1990, staff concurs with this request and has developed an agreement with input from both the Children's Museum and the Little Theatre to accomplish this. Below is a summary of the major provisions of the agreement: i Agreement Terms ■ Term As proposed, the agreement allows the Children's Museum use of the site from November 17, 1992 to December 31, 1995 (slightly over three years). The Children's Museum could then request extensions from the City Administrative Officer, in one year increments, until such time that the Little Theatre could demonstrate that it had met its fund raising goal (as set out in a separate agreement between the City and the Little Theatre) and was ready to begin theatre construction . ■ Coordination Between City, Children's Museum, and Little Theatre To insure that the City, Children's Museum, and Little Theatre efforts are coordinated, the agreement requires the City to arrange a minimum of two meetings annually between all three groups. This provision will help to maximize I planning and coordination efforts and insure that the Children's Museum has ample time to relocate once the Little Theatre is ready to begin construction. ■ Changes to Recreation Department Sponsored Program Status Under the terms of the proposed agreement, the Children's Museum will no longer be a Recreation Department sponsored program. As such, the Children's Museum will fully fund their staffing (in the past, the City contributed toward half of the costs of the Director position), will provide their own insurance coverage in accordance with City required standards (in the past, we have shared the costs of insurance), and will assume all responsibility for complying with the American's with Disabilities Act. ■ Hours of Operation The Children's Museum will guarantee to keep the Museum open to the public a minimum of twenty hours per week (this is consistent with our past agreement). lu�����►►l►►�flllll Ilii' I�IN c1ty of san '� u s oBi spo COUNGn= AGENDA RE&RT ■ Nipomo Street Bridge Replacement Impacts & Agreements The Children's Museum acknowledges and accepts that the Nipomo Street Bridge Replacement project will impact the Children's Museum operation. As such, the agreement sets out the responsibilities of the City and the Children's Museum during the construction period. The Children's Museum has agreed to assume responsibility for realigning the entrance way into the Museum that will be required during the bridge construction process. The City will take responsibility for restoring the original entrance. The Children's Museum has also agreed to allow the City to install temporary fencing along the new entrance walkway so that the City can use the balance of the property as a staging area during the bridge replacement project. ■ Maintenance Responsibilities Consistent with our past agreement, the Children's Museum will continue to be responsible for building interior and exterior (e.g., painting, roof repairs, etc.) maintenance. The City will take responsibility for the continued maintenance of the landscaping which equates to approximately one hour of work per.week. Request for Conceptual Endorsement for a Permanent Children's Museum Site In addition to requesting an extension to the agreement for the interim use of the Nipomo Street property, the Children's Museum has also requested conceptual commitment from the City to designate City owned property located at 630 Monterey Street as a permanent j Museum site (parking lot #14 situated on Monterey Street between Broad Street and Nipomo Street - See Attachment 2). They are further requesting that the Council direct staff to work with the Children's Museum to develop a long term agreement for the use of this property acceptable to the City and the Museum. Last year an extensive site selection analysis was conducted by the Children's Museum to locate an acceptable permanent home for the Museum. A piece of City owned property located at 630 Monterey Street (parking lot #14) emerged as the most desirable site. This selection was found acceptable by the Parking Committee (even though it would displace 16 parking spaces), BIA Board, the Chamber of Commerce and the Planning Commission. In addition, the Downtown Design Plan supports the Monterey Street site. Specifically, the Downtown Design Plan suggests that if the City chooses to j construct a parking structure on this site, the Children's Museum should be incorporated into the frontage of the project (the Museum is supportive of this recommendation). The major advantages to the site include its relative close location to the downtown and Mission Plaza, its proximity to other culturally oriented facilities, and the fact that it may be possible to relocate the existing Museum building to the site. �cu1i�1'��hIIiIIIIIIp�illllh� city of Sant 3 OBISPO COUNCIL. AGENDA REPORT Recommendation In response to this request, staff recommends that the Council conceptually endorse 630 Monterey Street as a permanent location for the Children's Museum, pending: (A) City Council approval of the Downtown Design Plan (which supports this location); (B) a need for the site triggered by the Little Theatre beginning construction of the theatre on the Nipomo Street site; and (C) the development of a mutually acceptable agreement for the value and long term use of the Monterey Street property. Even with these "qualifiers", the Children's Museum feels that a conceptual endorsement from the City would be advantageous at this time in that it will demonstrate the likelihood of continued City support, when they eventually must relocate from 1010 Nipomo Street. In addition, identifying an alternative site will help to establish the program as a more "permanent fixture" in the City, which in turn will assist in fundraising and other program expansion efforts. Assuming Council concurrence, staff would not envision drafting an agreement to accomplish this any time in the near term. Given the number of circumstances that could change over the next five years (the revised ground breaking date for the Little Theatre), and the fact that the City Council is not scheduled to take action on the Downtown Design Plan until Spring of 1993, staff believes that it would be in the best interest of the City and the Children's Museum to wait until circumstances necessitating the agreement draw nearer. Therefore, conceptual endorsement of the site is all that is necessary at this time. CONCURRENCES: Both the Children's Museum and the Little Theatre have reviewed and concur with the contents of the staff report and negotiated agreement extension. I I FISCAL IMPACT: i With respect to the agreement for the continued use of the Nipomo Street property, the Children's Museum has agreed to take on more financial responsibilities than in their prior agreement (e.g., they no longer need a City contribution to fund the Director position, they are fully funding insurance requirements), thus the City will be saving money and avoiding potential costs associated with insurance claims. Future costs associated with i i providing the Children's Museum with a permanent site are unknown at this time and will depend on the type of agreement ultimately reached. I ATTACHMENTS: (1) Letter from Children's Museum (2) Location Maps for Proposed Permanent Museum site (one from Parking Plan, one from Downtown Design Plan) (3) Proposed Agreement r .n nZ. .11. f^ -`Vl-.} �+ .' C. 's�T'F.... l&r. 1010 Nipomo Street PQ,- 6 San Luis Obispo, California 93406 805/544-KIDS September 11, 1992 ScP I " 1992 Mayor and City Council Members A0iVMq;Si;-G;;;UI+i CrIY OF SAN' LUIS OBISFO SAN LUIS oelSDo, Uq. City liall, 990 Palm Street San Luis Obispo, CA 93401 Attention: Mr. john Dunn, CAO SI?BJt:CT: Site far San Luis Obispo Children's Museurr, W-location Dear Mayor and Ci-,r Council Members: The San Luis Obispo Children's Museum currently occupies a 2000 square foot city-owned building at 1010 Nipomo Street as an interim tenant, until the Little Theatre is able to redevelon the site. Recently, the little Theatre requested a time extension for future construction of their facilities, and we are, therefore, asking to remain at this location until after December 31, 1995, by extension of our lease agreement vrith the City. This will give us ample time to continue our fund raising and building program, but it is important that we plan row for our future relocation. On February 15, 19191, we requested your consideration of two city-owned downtown parldng lots in the Niission Plaza area as our preferred site for relocation. The Museum Board of Directors unanimously agrees that there is a mutually beneficial relationship between the Museum and downtown, and that the Museum is a benefit to the City, complementing other park, recreation and cultural facilities and activities concentrated in the Mission Plaza vicinity. The museum has become scif supporting while increasing its public service and reducing its dependence on the City, but still needs City help in providing a suitable site for our future relocation. The matter was referred to staff and several advisory committees for comment and recommendation, but no action by the Council has yet been taken. The site which emerged as best is the Monterey Street frontage of permit parking lot #14 (630 Monterey Street). One major advantage of a site in such close proximity to the existing location is that it would enable or facilitate the possible move of the existing structure as a core for future expansion until the entire site is redeveloped. The museum building and grounds would displace approximately 16 parldng spaces but retain the tree in this front portion of the parking lot, without interfering with the Palm Street access driveway. If and when the City pursues the possible development of a parldng structure on this site, as suggested by the recent Dovmtown Design Plan, the Children's Museum would like to become a tenant of the City's structure. In any event, this site was considered conceptually acceptable to the Parldng Committee and BIA Board, despite the potential reduction of permit parking spaces, and also supported by the Planning Commission. ATTACHMENT 1 Mayor/City Council Mem; -2- September 11, 1992 We recognize that the terms and conditions of a long-term lease of City property, particularly the cost, would require detailed negotiations with staff before an agreement is submitted to the City Council for final approval. We request that this Council, familiar with the museum and already supportive of its- establishment, determine if the City is willing to consider helping the Children's Museum create a permanent home on this Mission Plaza site in downtown by directing staff to work with museum representatives to draft an agreement for its future use by the Museum. Assuming that the Council accepts the long-term lease proposal in concept, the Museum would prepare a development plan, pursue necessary general plan amendments and rezoning applications, ARC and/or Planning Commission approvals. Please feel free to call us if you have any questions or need more information to respond to this request. Thank you for your consideration: We look forward to discussion on your October 6, 1992 agenda. ;Suicer ly, Rob Strong and Candace Havens Co-chairs of Site Selection Committee . SAN LUIS OBISPO CHILDREN'S MUSEUM cc Lois Gall, President o 0 J r KI F W N a Qzm „ tA0� P. S o = NH r SOza c 0 CD O `ct ciz r IL I ' I� ^ J U 0 1 N ~ N N V' o WW N N p _ A ' W SYj crm N V (f lY O UQ^ wca�z W 0 U d �m m o o. a 15 vsO6 v1NV5 n e E�2��� O N J is Soso o O 6�- EloFlE. ___� 'iso ow , - zN NO x n 000 C � . O =Z.S< m � m Y p p d C gGJ v 1�0mnll S © E 3�: d M 7 O01 009 N T ^ ` Pu UU 'ls avoae J •= Om•O- a'roa0 zm: o PI and a n Vh�O .OaO �ia 0 :' r • 1 ` a J� .z a ixa i dl 006 Ol 001L OOZI 00£l OOYI dd 0 n y t S N n W Ki � Sxe. S S�i w 'iT HO 8 IL H 7 " age 1 1 W L° 23 y 0 P 1 J V < 1 O a iy0� IIN h a = ^ 11 E n 1 w d, I I w . es. o,, m z N ei mvh N r- ufl dF �Q Z J J J Orm m P 0 ♦ N P t « Z U � U(II U n OOO ¢ /"V`� w 1 p CL o f ror 6C C� 0 K 46M 3 Il' u•i 2 ZYM Ir Tm Ift Qn A� AT Il Nil q R AWN am 1 @4111 1- I f3l M5 WF At i W-S, 401 _I"IM WE own i,m4mil, WA 7 in ,mo -4- sp 0 I ` • tub 19 11 ail IL fn WIN .7 A p MIZE JLqw AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND SAN LUIS OBISPO'S CHILDREN'S MUSEUM FOR USE OF CITY PROPERTY AT 1010 NIPOMO STREET This Agreement entered into this day of 1992, between the City of San Luis Obispo (herein referred to as "City") and the San Luis Obispo Children's Museum, a non-profit organization (herein referred to as "Children's Museum"). WITNESSETH WHEREAS, the City is the legal owner of the property located at 1010 Nipomo Street in the City of San Luis Obispo as shown on Exhibit "A";. WHEREAS, the City has allowed the Children's Museum to operate a children's museum on this site since September of 1990; WHEREAS, the City considers continued use of this property by the Children's Museum to be in the public interest and an appropriate complement to the Mission Plaza and its activities; WHEREAS, the City is willing to continue to allow San Luis Obispo Children's Museum to use the property until the Little Theater has accumulated sufficient funds (as defined in a separate agreement between the Little Theater and the City) to commence construction of the community theater ultimately planned for the site; NOW, THEREFORE, in consideration of the mutual covenants, conditions, promises, and agreements herein set forth, the City and Museum hereby agree to the following terms and conditions for use of this property: TERMS 1. The City will allow the Children's Museum to use City owned property located at 1010 Nipomo Street in San Luis Obispo to operate a Children's Museum for the term of this agreement. 2. The term of this agreement shall begin on November 17, 1992 and terminate on December 31, 1995, unless both parties mutually agree in writing to an extension, termination, or revision. In addition, with City Administrative Officer approval, the Children's Museum will be able to extend this agreement in one year increments, until such time that the Little Theater can demonstrate that it has surpassed its fundraising threshold as defined in a separate agreement between the City and the Little Theater. This threshold shall be established at a level that assures adequate funds are available to actually construct the theater project. ATTACHMENT 3 U��Q 3. The City will schedule a minimum of two meetings annually between the Children's Museum, the Little Theater and the City to review the Little Theater's fundraising progress and other issues so that future planning among the organizations can be coordinated and maximized. This will also help to insure that the Children's Museum has ample time to anticipate and plan for any necessary relocation. 4. In recognition of the benefits the Children's Museum provides the community, the City agrees to provide the Children's Museum the use of site for $1 per year, payable on the anniversary date of this agreement each year. 5. The Children's Museum agrees to accept the building in its present condition. The costs to remodel or repair the building to maintain the structure as a museum shall be borne solely by the Children's Museum and includes but is not limited to interior improvements, exterior painting, hardscape, deck and fencing, and screening of temporary storage. 6. The Children's Museum agrees to assume full responsibility for insuring that the facility complies with the requirements of the Americans with Disabilities Act. 7. The Children's Museum agrees to obtain permission in writing from the City Administrative Officer before embarking on any remodel activities that exceed $10,000 in value. 8. The Children's Museum agrees to keep the museum open to the public a minimum of twenty hours per week. 9. The City agrees to provide routine weekly maintenance of the exterior grounds (e.g., cleaning parking lot and walkways,.picking up trash and weeding, etc.) and the natural vegetation along the adjacent creek bank. 10. The Children's Museum agrees to maintain the facility in a first class condition at all times. This includes maintaining and cleaning the building interior, exterior, and any landscaping associated with a Children's Museum exhibit (e.g., an herb garden, etc.). 11 . The Children's Museum acknowledges that the City intends to replace the Nipomo Street Bridge at some point during the term of this agreement, and as such, accepts that said replacement may cause disturbances, may impact hours of operation, and will require the Children's Museum at its own expense to reroute the walkway to the existing entrance.for the Museum during the construction phase of the project. In turn, the City agrees at City expense to restore the walkway to Nipomo Street upon completion of the project and make every reasonable effort to minimize the impact of the bridge replacement project on the Children's Museum operation, consistent with the City's need to complete the project expeditiously. In addition, the Children's Museum agrees to allow the City to install temporary fencing at City expense along the revised access walkway to the museum and patio area and allow the City to use the balance of the property as a staging area during bridge construction. 12. The Children's Museum agrees to allow the City to place and maintain a storage facility on the eastern portion of the property to store equipment and supplies for Mission Plaza. 13. The City reserves the right to terminate this agreement by notifying the Children's Museum in writing six months prior to termination should the City need the property for official City business. 14. The Children's Museum agrees to provide proof of insurance in accordance with the requirements established in Exhibit B attached hereto and incorporated herein by reference. 15. The Children's Museum certifies that it is aware of the provisions of the Labor Code of the State of California, which require every employer to be insured against liability for workers compensation or to undertake self-insurance in accordance with the provisions of that Code, and it certifies that it will comply with such provisions throughout the term of this agreement. 16. The Children's Museum hereby agrees to indemnify and save harmless the City, its officers, agents, and employees against: A. Any and all claims and demands which may be made against the City, its officers, agents or employees by reason of any injury or death of any person or corporation caused by any negligent act or omission of the Children's Museum under this agreement or of the Children's Museum's employees or agents; B. Any and all damage to or destruction of the property of the City, its officers, agents, or employees, occupied or used by or in the care, custody, or control of the Children's Museum, or in proximity to the site of the Children's Museum work, caused by any negligent act or omission of the Children's Museum under this agreement; C. Any and all claims and demands which may be made against the City, its officers, agents, or employees by reason of any injury to or death of or damage suffered or sustained by an employee or agent of the Children's Museum under this agreement, however caused, excepting, any such claims or demands which are the result of the negligence or willful misconduct of the City, its officers, agents, or employees; D. Any and all claims and demands which may be made against the City, its officers, agents or employees by reason of infringement or alleged infringement of any patent rights or claims caused by the use of any apparatus, appliance, or materials furnished by the Children's Museum under this agreement; and E. Any and all penalties imposed or damages sought on account of the violation of any law or regulation or of any term or condition of any permit, when said violation of any law or regulation or of any term or condition of any permit is due to negligence on the part of the Children's Museum. The Children's Museum, at its own costs, expense, and risk shall defend any and all suits, actions, or other legal proceedings that may be brought against or for employees on any such claim or demand of such third persons, or to enforce any such penalty, and pay and satisfy any judgement or decree that may be rendered against the City, its officers, agents, or employees in any such suit, action, or other legal proceeding, when same were due to negligence of the Children's Museum. Children's Museum Director Director City of San Luis Obispo Mayor Attest: City Clerk Approved as to content and form: City Administrative Officer t 0 r y , I i I 1 / A ' - --- = m°n#ercy street I �• i _1 to R � 1 p a N T O � � r+ ; .1'•t. �:..:_ .-III t' � � � ^ I I 111 / c N :\ y C GY� ' y M '• C ' 3 • INSURANCE REQUIREMENTS FOR LESSEES (NO AUTO RISKS) Lessee shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Lessee's operation and use of the leased premises. The cost of such insurance shall be borne by the Lessee. Minimtue Scope of insurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. . Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance (for lessees with employees). 3. Property insurance against all risks of loss to any tenant improvements or betterments. Minimum Limits of Imumnce Lessee shall maintain limits no less than: 1. General Liability: $1,000;000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 3. Property Insurance: Full replacement cost with no coinsurance penalty provision. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either. the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Lessee shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The general liability policy is to contain, or be endorsed to contain, the following provisions: 1. The City,its officers,officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of premises owned, occupied or used by the Lessee. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. The Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials,employees, agents or volunteers shall be excess of the Lessee's insurance and shall not contribute with iL 3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers. 4. The Lessee's instirance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended,voided,cancelled by either party, reduced in coverage or in limits except after thirty(30)days' prior written notice by certified mail, return receipt requested, has been given to the City. Amptability of Insuters Insurance is to be placed with insurers with a current A.M. Best's rating of no less than ANII. Verifcation of Coverage Lessee shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. An ons endorsement effecting general liability coverage required by this clause is also to be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before the lease commences. 17 EXHIBIT B `,