HomeMy WebLinkAboutPalm Springs Art Museum - Installation of Three Sculptures - Lighting�V
CITY OF PALM DESERT
CITY MANAGER'S OFFICE
STAFF REPORT
REQUEST: APPROVAL OF PAYMENT IN THE AMOUNT OF $39,915.65 TO
THE PALM SPRINGS ART MUSEUM IN PALM DESERT FOR
INSTALLATION OF THREE SCULPTURES AND ASSOCIATED
LIGHTING COSTS.
SUBMITTED BY: Ryan Stendell, Senior Management Analyst
LESSEE: Palm Springs Art Museum
Elizabeth Armstrong, Executive Director and CEO
101 Museum Drive, Palm Springs, CA 92262
DATE: August 27, 2015
CONTENTS: PSAM Invoice for FY14/15
Internal Correspondence Related to Annual Expenses
Recommendation
By Minute Motion:
1. Approve funding in the amount of $39,915.65 to the Palm Springs Art
Museum (PSAM) for costs related to installation of three sculptures
and associated lighting costs.
Funds are available in FY14/15 budget account number 1104800-4388500 for this
payment.
Discussion
The lease agreement with the PSAM authorized several payments to them on an
annual basis to assist with operations of a museum. The biggest expense incurred by
the City is costs associated with installation of new sculptures. The lease agreement
allows PSAM up to $10,000 per sculpture with an initial ten installations in year one of
operations and up to five installations in each subsequent year. The lease also names
the City as responsible for paying all costs for installation of new art pads, and lighting
costs.
This payment request relates to the sculptures and lighting costs for installation in
FY14/15. The PSAM's expenses exceeded the $10,000 per sculpture, however, they
are only billing us for $10,000 per sculpture plus lighting costs of $9,915.65. Staff does
Staff Report
PSAM 2015 Expenses
August 27, 2015
Page 2 of 2
budget for the annual expenses related to the PSAM lease, and will continue to work
with their staff to ensure compliance with the lease agreement.
Fiscal Analysis
Funding for this request was budgeted in the FY14/15 budget, there is no fiscal impact
related to this request.
Prepared By:
IA�
Ryan Stendell
Senior Management Analyst
Revie and Concur:
Pa S. Gibson, Director of Finance
al:
Jo,(n". Wohlmuth, City Manager
PO BOX 2310
PALM SPRINGS, CA 92263-2310
Phone 760-322-4800 Fax 760-327-5069
Bill To:
Stephan Y. Aryan
Risk Manager
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
DATE: July 16, 2015
INVOICE # 7.16.15.a
Palm Desert Phase 2 Sculpture Installation
I DESCRIPTION I AMOUNT I
TION OF: Plensa 1 Laura
tion-Shipping to LA from Chicago, core drill
Lion -Shipping from LA to Palm Springs Installation
Base
Engineering costs
INSTALLATION OF: Plensa 2 Awilda
Transportation -Shipping to LA from Chicago, core drill
Transportation -Shipping from LA to Palm Springs Installation
Base
neering costs
RELOCATION OF: Shemi
Engineering costs
De -Install
Removal of old base
Base
Installation
INSTALLATION: LIGHTING FOR NEW SCULPTURES
(See attached for backup)
If you have any questions concerning this invoice, contact
Greg Polzin at 760-3224807 or gpoWn@psmuseum.org
THANK YOUI
3,586.23
2,775.81
2,345.00
2,367.81
2,215.40
3,586.23
2,775.81
2.345.00
2,367.81
2,215.40
2.367.81
2,690.05
750.00
2.345.00
2,775.81
9,915.65
Total Cost 1 $ 47,424.82
r
to
T
7
S
3
fA
ONI
cm
M
N
N
O
O
D
m
O
7
11
C
'O
C
ro
W
N
W
M
tD
N
W
lD
N
W
lD
1+
M
w
W
N
W
lD
A
01
N
00
00
W
m
N
00
00
to
01
\
\
\
\
\
\
\
\
\
\
\
\
\
\
\
\
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
O
O
O
O
O
O
O
O
O
d
0
O
O
O
O
O
to
M
to
to
A
A
to
In
In
to
A
to
to
to
to
A
7
G
2.
W
00
W
W
W
00
W
W
00
W
0o
W
4J
W
W
00
w
00
W
W
W
W
m
F+
V
-4
V
w
A
M
N
A
A
0
tD
v
V
to
QM
f+
M
N
A
O
to
V
4
to
M
w
w
N
A
O
tD
a
A
to
V
A
�I
01
111
W
M
V
M
to
to
w
V
m
n
S
ro
w
w
w
w
w
w
�+
+-+
►-+
w
w
w
w
w
w
M
r+
0o
00
w
00
v
v
00
V
.i
00
.i
00
v
.i
co
.i
4
O
V
N
N
Q1
O
cl
cn
-1
(n
O
m
m
V
M
2t
to
N
to
A
to
W
N
W
V
tD
W
N
W
-J
tD
W
Q1
Qti
O
V
V
O
01
O
O
O�
O
Qt
O
O
01
O
D
O
c
to
to
to
.3.
iA
w
t/s
to
tJ1
t/►
w
tJ►
to
to
to
AA
M
{/?
to
to
to
tn•
�
lD
O
N
�J
N
N
W
N
W
N
N
N
W
N
W
N
N
N
y
LD
to
V
W
V
m
W
N
4
(n
N
w
W
N
-.!
In
N
W
W
a
w
"
V
A
to
tD
m
lD
14
00
H+
A
m
tD
V
M
w
A
M
6n
Co
to
to
O
O
V
O
to
Q1
Cn
In
V
O
to
M
to
Ut
V
in
.
in
.
00
.
O
.
O
.
O
.
0o
.
N
.
0o
.
N
.
?
.
O
.
0o
.
N
.
0o
.
N
.
A
.
O
.
00
to
V
w
O
o
to
w
to
w
W
O
O
w
tr
w
W
O
O
M
d
7
S
S
?
S
C
C
O
m'.
N
ro
f(0
tu
°v+'
0,
v+
ro
o0
0
ro
a
LA
ro
0a
o
ro
a
ro
o'a
a
s
o
o
v
v
v
a
5
3
73
3
cm
OA
DQ
0A
Oti
on
ro
j
O
^
O
7
ti"
O
`
3
00
oo
O
3
OD
O
3
5
00
0
0
a
o
o
'"
ro
..
0
3
,y
0
3
o,
s
d
=r
3
a
3cu
-D
o
o
on
0
0t0
3
o_
a
c,
=
a
m
d
o
`o'
0
>
CITY OF PALM DESERT
CITY MANAGER'S OFFICE
INTEROFFICE MEMORANDUM
To: John M. Wohlmuth, City Manager
From: Stephen Y. Aryan, Risk Manager
Date: March 24, 2012
Subject: Palm Springs Art Museum Lease Analysis
On July 1, 2010, the City entered into a lease agreement with the Palm Springs Art Museum
concerning the former Visitor Center located at 72-567 Highway 111. The following is a breakdown
of the fiscal impact associated with this lease.
There are numerous variables outlined below that would make it difficult to place an exact fiscal
impact associated with this lease agreement. However, an approximate estimate of the "Year One"
maximum cost would be $175,000, plus the capital improvement project to install the sculpture
bases/lighting system. In subsequent years the potential costs could be approximately $135,000,
with this amount dropping by approximately $15,000 after the initial twenty (20) honoraria
payments are met.
Again, these costs are a maximum estimate and may not reflect actual expenditures. It was difficult
to provide a more accurate number, as variables exist, with the most significant fiscally being how
often the PSAM will rotate the non-exclusive use sculpture exhibits. I was informed that the
Museum will provide more information on this specific matter at the upcoming City Council Study
Session on April 12, 2012. Please contact me should you have any comments or questions.
CITY RELATED SECTIONS
Lease Item Cost (if applicable)
Section
2.3 Sculptures Up to $10,000 per
(page 3) installation or removal
@ 20 pieces =
$100,000 potential per
year cost.
2.3 Sculptures
(page 3)
2.3 Honorarium
(page 3)
TBD - Based on
specifications provided
and is expected to be a
significant expenditure.
$2,575 per piece @
20 pieces
Comments
The City is responsible for the cost to
transport, install, and remove sculptures, at an
amount up to $10,000 p/installation, as some
pieces may cost less to install. At year one a
maximum of 10 or less sculptures installed and
subsequent years are 5 or less sculptures.
The City is responsible for paying all costs for
the installation of sculpture bases/foundations
and lighting.
This one time honorarium increases by $50 on
the anniversary of the Commencement Date
each year. So subsequent years will have
slightly higher costs. The lease calls for an
initial maximum of 20 honoraria.
PSAM Lease Analysis
March 24, 2012
Page 2 of 3
CITY RELATED SECTIONS (continued
Lease item Cost (if applicable)
Section
2.3 Landscape n/a-Already incurred
(page 3) Maintenance cost
5.2 Lessor's Up to $40,000 plus
(page 7) Obligation future maintenance
responsibilities.
5.4
(page 8)
6.2
(page 10)
9
(page 14)
Ownership
Property
Insurance
Utilities $
Services
Comments
City is still responsible for all landscape
maintenance, landscaping, and other
maintenance, cleaning/trash removal,
irrigation and other related expenses to
maintain the Gardens and Carriage Lane
(current level of maintenance).
The City is responsible for paying to retrofit the
fire protection system and HVAC to meet the
Museum's standards at a cost of up to
$20,000 each. The City is responsible
maintain and replace if needed, the roof, roof
drainage, solar, and the HVAC system, fire
protection systems, exterior painting, and
exterior roadways, parkways, pathways, and
sidewalks.
n/a Any utility installations (e.g. floor/window
coverings, vacuum lines, power panels,
security/fire protection systems, etc) and
alterations will become the City's property
upon lease termination/expiration. The City
may opt to have the Museum remove such
items.
Current Premium for
Non-exclusive Area
Artwork is $10,000 for
ten sculptures.
Additional sculptures
will increase this
premium based on their
full replacement cost
and underwriter
analysis.
Cannot be determined
The City is responsible for covering the
premises and the nonexclusive use area not
only for General Liability Coverage, but the full
replacement cost of the premises and any
statuary or other artwork in the non-exclusive
use area.
The City is required to compensate the
Museum for any increased electricity cost to
the building arising from the reduced efficiency
of the solar panels.
PSAM Lease Analysis
March 24, 2012
Page 3 of 3
MUSEUM RESPONSIBILITIES
Cost (if applicable)
Lease
Item
Section
1.5
Base Rent
$1.00 p/year
(page 1)
2.1
Letting
n/a-supervision
(Page 2)
5.1
Lessee's
Maintenance Costs
(page 6)
Obligation
5.1
Service
Service Contracts
(page 6)
Contracts
9
Utilities &
n/a
(page 14)
Services
Exhibit C
Lease
CAM Charges-$715.58
(pg. C-1)
Terms
& Interior Maintenance
Exhibit C
Lease
Real Property Taxes
(pg. C-2)
Terms
Exhibit C
Lease
Resident Benefit
(pg. C-2)
Terms
Package
Comments
+Lease is for a five year term commencing
11/1/10, with the Museum having an option to
extend it for five successive 5 year periods (25
years). The Museum can terminate the lease
with 365 days notice. The City can terminate
for breach of Contract.
The Museum is responsible for managing and
supervising the Eric Johnson Memorial
Gardens (sculpture Garden, Plaza, Multi -
sensory Garden, & Carriage Lane on a non-
exclusive use basis.
Museum is responsible for plumbing, electrical,
lighting facilities, boilers, pressure vessels,
fixtures, walls (interior/exterior), ceilings, floors,
windows, doors, plate glass, and signs located
on the premises. They are also responsible for
any security system upgrades to the premises.
Museum shall maintain services contracts for
the boiler/pressure vessels, clarifiers, basic
utility feed, and any other equipment that is
their responsibility.
The Museum is responsible to pay all water,
gas, heat, light, power, telephone, trash
disposal, and other utilities and services
supplied to the premises.
The Museum shall pay the current Community
Area Maintenance charge and is responsible
for interior janitorial maintenance.
Both City and Museum are property tax
exempt entities, but any real estate taxes or
assessment against the premises, will be the
Museum's responsibility to pay.
Residents will receive a special benefit
package. No details were provided on what
this packaqe entails.
Attachments: Lease Agreement & Museum Required Operating Days
cc: City Council
Justin McCarthy, Assistant City Manager
Paul S. Gibson, Director of Finance
Mark Greenwood, Public Works Director
Lauri Aylaian, Community Development Director
Deborah Schwartz, Public Art Coordinator