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Home My WebLink AboutAssistance to the McCallum Theatre With Parking Lot RenovationCITY OF PALM DESERT OFFICE OF THE CITY MANAGER STAFF REPORT REQUEST: Consideration of Assisting the McCallum Theatre with Parking Lot Renovations SUBMITTED BY: John M. Wohlmuth, City Manager DATE: May 26, 2011 CONTENTS: January 21, 2011 Letter from President/CEO, McCallum February 9, 2011 Letter from City Manager to McCallum CEO May 6, 2011 Memorandum from Mark Greenwood to City Manager Amendment: McCallum Theatre Recommendation By Minute Motion: (1) Consider funding the McCallum parking lot and parking lot landscape improvements from the Unobligated General Fund Reserve in the amount of $225,000; and, (2) Appropriate $225,000 from the Unobligated General Fund Reserve. Background In January, 2011, the McCallum Theatre requested $976,800 from the Palm Desert Redevelopment Agency for parking lot repairs and re -landscaping. I responded to their request stating the uncertainty of the future of RDA in Palm Desert due to the Governor's budget proposal. In addition, if RDA was not eliminated, the parking lot reconstruction would have to be in the RDA Five Year Plan. If Council/RDA Board desired, the RDA Five Year Plan could be modified in early summer 2012. During the FY 2011/2012 budget discussions, Mayor Pro Tern Spiegel requested that staff look at what is needed to improve the McCallum Theatre parking lot and approximate cost. On April 15, 2011, Spencer Knight, Mark Greenwood, and I reviewed the condition of the parking lot. Please find attached a memorandum from Mark Greenwood indicating the cost of a slurry seal and landscaping at $225,000. Staff Report Consideration of Assisting with the McCallum Theatre Renovation May 26, 2011 Page No. 2 When the City provided a five million dollar cash payment to the McCallum in July, 2001, the agreement stated the Theatre was to maintain a reserve account to pay for maintenance and capital improvements. The agreement required a minimum of $100,000 to start. At this point we remain uncertain about the outcome of the impact on RDA of the Governor's budget proposal or budget legislation in the form of a potential compromise and the requirement to modify our Five Year RDA Plan, unobligated general fund reserve is the only funding available if the Council wishes to assist the McCallum. It appears that the McCallum Board desires more than a slurry seal to improve the parking lot pavement (based on their letter). Public Works staff still believes that total reconstruction of the pavement is not necessary. The landscape requires a full reconstruction. The ultimate project will be the responsibility of the McCallum Theatre. We can condition any funding to meet the City's parking lot tree ordinance. If the McCallum wishes to do pavement other than slurry seal, I would suggest they raise the remaining funds. Fiscal Analysis Appropriate $225,000 from the Unobligated General Fund Reserve. Submitted By: CITYCOUNCMAvON APPROVED DENTED n RECEIVED OTHER hn M. Wohlmuth, City Manager Paul S. Gibson, Director of Finance NOES: .LY ,...,�..,..�,.........�,,, ABSENT: ABSTAINS VERIFIED BYt WIL....,�. Original on File with City rk's Offics * Approved the $225,000 funding and appropriation. 5-0 January 21, 2011 Mr. John Wohlmuth City Manager City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Dear John: CID map II y � V 33 vwc��r v. .. THEI{f IE PALM DESERT, CALIFORNIA To follow up on our recent conversation, the 586 spaced parking lot, landscape and hardscape of the McCallum Theatre are twenty-three years old. Over the years McCallum Theatre has "slurried" the parking lot several times, tended to the landscape and patched the hardscape. However, we are point where major work needs to be done to address the condition of these areas to avoid financial liability and visual blight. In light of the State of California's current budlget proposal, McCallum Theatre would like to work with City of Palm Desert Council Members to direct funds from its Redevelopment Agency to fund the work required for the parking lot, landscape and hardscape. The estimated cost of this project is $976,800. McCallum Theatre is requesting funding in this amount for this project from the City of Palm Desert Redevelopment Agency. Please find attached the current cost estimates for your reference. The McCallum Theatre is one of jewels of the desert and is recognized nationally as one of the most successful theaters in the country. We are proud to be in the City of Palm Desert, and are most grateful for the financial support and good will the City of Palm Desert has extended to the "IMcCallum" over the years. I hope the City of Palm Desert will look favorably on this request. Please do not hesitate to contact me at 760.346.6505, ext. 100 should you have any questions or require additional information. Sincerely ours, Ted' GialEm Pfesid & CEO TG:eps Enclosure 73000 Fred Waring Drive, Palm Desert, CA 92260 • Ph 7(,;: 346-65=,,� • Fax 760-341-9508 • www mccallumtheatre.com J 'r'�2 LC.A 3 Ail" k"I"VA Zr ac THEATRE PALM DESERT, CALIFORNIA ement Project Re -pavement of the parking area, including some concrete drainage work and reconstruction* ............................................. $350.000 New landscaping of the parking lot to desert theme/new irrigation to suit ...................................................... 48,000 New hardscapelconcrete. Removal and re -application of 31,000 square feet of hardscape ...................................... 240,000 Replacement of McCallum Theatre Donor Stars ........................................ 250,000 10% Contingency ................................................................................. 88,800 Total Estimate ......... $976,800 a 1 0 of oil. 73000 Fred Waring Drive, Palm Desert CA9226,,,.Pt,, ?i'.. `14665,','-Fix 76;'-341-9508,wwwmccallumtheatrecom 1 I y Of P H�ti� 73---510 171ZI.:n WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL:76o 346—o6n rnx: 760 340--0574 infi>(0palnrdcscrt.org February 9, 2011 Mr. Ted Giatus, President and CEO McCallum Theatre 73000 Fred Waring Drive Palm Desert, California 92260 Dear Mr. Giatus: Thank you for your correspondence following up on our earlier conversation concerning the proposed capital improvements to the McCallum Theatres' parking lot, landscape, and hardscape. The City of Palm Desert appreciates the wealth of cultural and educational programs the McCallum provides each year. As you are aware, Palm Desert is once again at risk of losing local funds to State revenue raids. The Governor is proposing the elimination of redevelopment agencies statewide. In reaction to this and the overall economy, the City has taken several budget tightening steps to ensure there will not be an extreme negative impact to the quality of life our community is provided. The only projects we can move forward to rapidly construct or otherwise fund prior to the State's potential raid on these funds are projects already identified in our RDA Five Year Plan. Since the State Auditor Controller is auditing our RDA projects this week, we cannot add projects to that list until the appropriate year review period. Therefore, we are currently limited by our available general fund monies and unable to assist in such a worthy project as your own. We are also limited in using redevelopment agency funds because we cannot enter into any contract that would obligate such funds. I am sorry that we cannot assist the McCallum Theatre based upon our current economic situation. Please contact me should you wish to discuss this matter further. t,,thnM. Wohlmuth y nager JMW:SYA cc: City Council Justin McCarthy, Assistant City Manager Paul S. Gibson, Director of Finance/City Treasurer Stephen Y. Aryan, Assistant to the City Manager Rachelle Klassen, City Clerk Luis Espinoza, Assistant Finance Director C.* tRINIFD ON RE(YRaD wER CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT INTEROFFICE MEMORANDUM To: John W. Wohlmuth, City Manager From: Mark Greenwood, P.E., Director of Public Works 4 r__' Date: May 6, 2011 Subject: McCallum Theatre Parking Lot Maintenance and Landscape Renovation In response to your request, the condition of the parking lot at the McCallum Theatre was reviewed. Attached is a site plan showing the area. The parking lot is approximately 204,000 sq. ft. and is shown on the attached aerial photo. The cost to resurface the entire lot using warm -mix asphalt is approximately $2.50 per sq. ft. for a total of $510,000. The cost to seal coat the lot is approximately $0.35 per sq. ft. for a total of $71,400. My recommendation is to continue seal coating the parking lot on a four to five year schedule. The renovation of the parking lot planter landscaping involves removing turf, trees, and stumps; and then reestablishing grade, modifying the irrigation to drip, and installing 90 trees and 25,000 sq. ft. of decomposed granite. The estimated cost for this work is $154,000. If you have any questions, please let me know. Attachment (as noted) /bl Amendments color coded MCCALLUM THEATRE PARTIES RDA; Friends of the Cultural Center, Inc; McCallum Theatre Foundation, Inc.; Desert Community College District AGREEMENT DATE DDA: June 28, 2001; Mmo of As nmt, Lease & Sublease: July 26, 2001 CONTRACT NO. IMPLEMENTATION — March 1, 2049 TIME FRAME STATUS Active BRIEF DESCRIPTION Continued operation & maintenance of performing arts facility LOCATIONS) _ 73-000 Fred Wann Dr PROJECT AREAS PA-1 DEVELOPER / OTHER 1. By 7/31/01, Foundation & Centerto have endowment fund bal of min PARTY $5-mil cash & pledges, exclusive of RDA pmt; Centerto appoint a COMMITMENTS member of COPD Cty Cncl to its bd of dir; Foundation to appoint COPD CM (or designee) to its bd of dir, both w/full voting rights 2. Center to invest $5-mil+int; may draw int + 2.0833%/prncpl once/yr 3. Center to maintain reserve account to pay for maint & cap impvmts min $100K to start 4. Beginning cal yr 2002, maintain sufficient funds to cover future operating shortfalls 5. Centerto have range of programs, youth/student performances/training.. . 6. Centerto maintain bldg, property, landscaping AGENCY 1. Lease Theatre property & building from Center for $5-mil lump sum COMMITMENTS 2. Sublease Theatre prqperty & bbildin to Center for $1.00/ r FUNDING SOURCES Bonds SECURITY FOR Return of Lease payment, prorated (forMula in file); & remedies at law or PERFORMANCE equity AGENCY 1. W/reasonable notice to Center, RDA/City may inspect operations & ADMINISTRATIVE maintenance of building & property DUTIES 2. Approve any successor COMMENTS Building is restricted to use as a cultur I & erformin arts facility EXTERNAL Friends of the Cultural Center, Inc & cCallum Theatre Foundation, Inc CONTACT both same addr/ph: 73-000 Fred W Ong Drive, Ph 760-346-6505, Fx 760- 341-9508; College of the Desert, 43-500 MontereyAve INTERNAL CONTACT Dennis Coleman CERTIFICATE OF COMPLETION N/A FILE LOCATION Cit Clerk: 168-001 & A en Pro-ects DOCUMENT UPDATED 8/23/06 Xref: Friends of the Cultural Center, Inc. McCallum Theatre Foundation, Inc. G:\RDA\RDA group documentslAgreement Abstracts\McCallum Theatre,doc MCCALLUM THEATRE PARKING LOT +/- 203,560 SCLFT VICINITY MAY