HomeMy WebLinkAboutA6447 - PALM SPRINGS ART MUSEUM - MEASURE J FUNDING LETTER AGR City of Palm Springs
David H. Ready, Esq., Ph.D.
City Manager
3200 Ease Tahquiez Canyon Way,Palm Springs CA 92262
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Tel 760.322.8350 • Fax 760.323.8207 • TDD 760.864.9527
David.Ready@palmspringsca.gov • www.palmspringsca.gov
March 26, 2014
Mr. Steven Nash, Executive Director
Palm Springs Art Museum
101 N Museum Dr
Palm Springs, CA 92262-5659
Re: Measure J Funding Disbursement, Uses and Reporting
Dear Mr. Nash:
On November 7, 2013, the City of Palm Springs (the "City") enter into a Letter Agreement with
the Art Museum (the "Museum") for Measure "J" funding for the restoration and
transformation of the former Santa Fe Federal Savings and Loan Building, located at 300 South
Palm Canyon Drive, into the Palm Springs Art Museum Architecture and Design Center,
Edwards Harris Pavilion (the "Center").
The Museum has established the restoration is well ahead of the initial construction schedule
and has requested a stepped-up payment schedule of Measure "J" funds (Attached).
This Amendment to the Letter Agreement will authorize and approve the disbursement for the
second allocation in the amount of$283,000, upon execution by both parties of this letter.
The terms and understanding outlined in the initial Letter Agreement are not altered and shall
stand as written between the City and Museum associated with this financial commitment.
This Amendment and the Letter Agreement will ensure that the funds provided through
Measure J are used in the manner in which the City intended, while providing the Museum
with the continued flexibility it needs to develop, renovate and operate the Center in a fashion
that optimizes its success.
Sincerely, Accepted by:
CITY OF PALM SPRINGS =,V,-
RT MUSEUM
David H. Ready, Esq., Ph. r. Steven Nash
City Manager Executive Director
ATTEST: Approved as to Form:
mes Thompson, City Clerk Douglas C. Holland, City Attorney
PO Box 2743,Palm Springs CA 92263
PALM SPRINGS
ART MUSEUM
March 7, 2014
David H. Ready, Esq., Ph.D.
City Manager
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92201
Dear David:
As you are aware,the Palm Springs Art Museum is well under way with construction of the
Architecture and Design Center located at 300 S. Palm Canyon Drive. We now anticipate
completion of the project and occupancy to take place this June. While that is excellent news,
the completion of construction will require funding final payment to the contractor. To prevent
the museum from borrowing funds and incurring interest charges, we are looking for ways to
advance cash flow from pledges.
Fortunately,the museum was awarded $850,000 of Measure J funding from the City to assist
with the cost of the project. To date, we have received $283,000 and are seeking to accelerate
payment of second installment which is currently scheduled next fiscal year. Pursuant to your
conversation with Harold Meyerman and Greg Polzin, I am requesting an amendment to our
agreement that would provide the second payment of$283,000 in April of 2014.
On behalf of the museum, I wish to thank you for considering this request. We look forward to
seeing you and many other City representatives at our grand opening this November.
t
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Chief Operating Officer
PO Box 2310,101 Museum Drive,Palm Springs,CA 92263-2310 760-322-4800 info apsmuseum.org psmuseum.org
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4 City of Palm Springs
David H. Ready, Esq., Ph.D.
City Manager
D
3200 Eazt Tahquitz Canyon Way,Palm Springs CA 92262
Tel 760.322.8350 • Fax 760.323.8207 • TDD 760.864.9527
David.Ready@palmspringsca.gov • www.palmspringsca.gov
November 7, 2013
Dr. Steven Nash, Executive Director
Palm Springs Art Museum
101 Museum Drive
Palm Springs, CA 92262
RE: Measure J Funding Disbursement, Uses and Reporting
Dear Dr. Nash:
On July 3, 2013, the Palm Springs City Council approved $850,000 for the Palm Springs
Art Museum's (the "Museum") restoration and transformation of the former Santa Fe Federal
Savings and Loan building, located at 300 South Palm Canyon Drive, into the Palm Springs Art
Museum Architecture and Design Center, Edwards Harris Pavilion (the "Center"). The funds are
to be allocated over a three-year period beginning in FY 13/14. Phase I of the construction
commenced August 19, 2013, while the months prior were spent reviewing contractor bids and
"value engineering" for optimum cost containment. Construction on Phase I will be completed
in early 2014.
This letter agreement outlines the City's provisions for uses and reporting associated
with the project and for the Measure J funding disbursement. The following points outline the
understanding between the City of Palm Springs and the Museum associated with this financial
commitment:
Uses
• Pursuant to this Agreement, construction work on Phase I of the Center facility at 300
South Palm Canyon Drive shall proceed as approved by the City's Building Department,
without delay or disruption until completion, under the supervision of Marmol Radziner
Architects, the project architects.
• All work shall be performed by contractors duly licensed in the State of California and
which have an active business license in the City of Palm Springs.
PO Box 2743,Palm Springs CA 92263
Palm Springs Art Museum
November 7, 2013
Page 2
• Substantial completion of Phase I shall be completed in time to host several activities
during Modernism Week 2014.
• Pursuant to this Agreement, fundraising efforts shall continue for the $625,000 needed
for Phase II of the project during the construction of Phase I, and after Phase I of the
Center is operating, until such fundraising is complete.
• The Museum shall operate Phase I and Phase II of the Center and the program
associated with the Museum's Architecture and Design Council, including facilitating
special events, speakers, competitions, permanent exhibitions, shows, developing a
collection of materials and resources, and offering expert guidance in the area of
architecture and design at the Center or the Museum.
• Pursuant to this Agreement, the City of Palm Springs and Measure J shall receive
significant recognition for its contributions to the Center at 300 South Palm Canyon
Drive in all on-site and off-site signage, letterhead, brochures and collateral materials,
website, social media and other electronic references in a manner acceptable to the City
Manager. The City acknowledges that the Center is an activity and facility, and
therefore part of the Palm Springs Art Museum, and already has dedicated the primary
naming opportunity as the Edwards Harris Pavilion, but nevertheless requires the use of
the City seal and name in the locations and media described in this section.
• The funds provided by the City pursuant to this Agreement are to be used by the
Museum solely for the physical improvements at the Center during the fiscal years for
which they are provided.
• Any changes in the use of funds outside the use described above at the Center will
require prior City Council approval.
Disbursement
• The commitment by the City for the Center is considered to be $850,000, which is to be
disbursed over three years for the convenience and cash flow needs of the City and is
not required to match the funding or cash flow needs of the Museum for the Project;
therefore, any funds disbursed to the Museum under this agreement for a fiscal year
can be rolled over into the following fiscal year without additional approval of the City.
• The amounts to be disbursed by the City are: FY 13/14 - $283,000; FY 14/15 - $283,000;
and, FY 15/16 - $284,000.
• In FY 13/14, the full amount of $283,000 will be disbursed to the Museum within 30
days after this Agreement is executed by both parties.
Palm Springs Art Museum
November 7, 2013
Page 3
• In FY 14/15 and FY 15/16, the full amount allocated will be disbursed 30 days after an
Annual Report on the Center is presented to the City Manager, along with an invoice for
the amount of the next funding due.
• The Museum will provide quarterly reports to the City Manager on the use of the
Measure J funds.
Indemnification of City.
Museum, as a material part of the consideration to be rendered to City under
this Agreement, hereby waives all claims against City for damage to equipment or other
personal property, trade fixtures, leasehold improvements, goods, wares, inventory and
merchandise, in, upon or about the Premises and for injuries to persons in or about the
Premises, from any cause arising at any time. Museum agrees to indemnify the City, its officers,
agents and employees against, and will hold and save them and each of them harmless from,
any and all actions, suits, claims, damages to persons or property, losses, costs, penalties,
obligations, errors, omissions or liabilities, (herein "claims or liabilities")that may be asserted or
claimed by any person, firm or entity arising out of or in connection with the negligent
performance of the work, operations or activities of Museum, its agents, employees,
subcontractors, or invitees, provided for herein, or arising from the use of the Premises or the
parking and common areas by Museum or its employees and customers, or arising from the
failure of Museum to keep the Premises in good condition and repair, as herein provided, or
arising from the negligent acts or omissions of Museum hereunder, or arising from Museum's
negligent performance of or failure to perform any term, provision, covenant or condition of
this Agreement, whether or not there is concurrent passive or active negligence on the part of
the City, its officers, agents or employees but excluding such claims or liabilities arising from the
sole negligence or willful misconduct of the City, its officers, agents or employees, who are
directly responsible to the City, and in connection therewith:
(a) Museum will defend any action or actions filed in connection with
any of said claims or liabilities and will pay all costs and expenses, including legal costs and
attorneys' fees incurred in connection therewith;
(b) Museum will promptly pay any judgment rendered against the
City, its officers, agents or employees for any such claims or liabilities arising out of or in
connection with the negligent performance of or failure to perform such work, operations or
activities of Museum hereunder; and Museum agrees to save and hold the City, its officers,
agents, and employees harmless therefrom;
(c) In the event the City, its officers, agents or employees is made a
party to any action or proceeding filed or prosecuted against Museum for such damages or
other claims arising out of, or in connection with, the negligent performance of or failure to
Palm Springs Art Museum
November 7, 2013
Page 4
perform the work, operation or activities of Museum hereunder, Museum agrees to pay to the
City, its officers, agents or employees, any and all costs and expenses incurred by the City, its
officers, agents or employees in such action or proceeding, including, but not limited to, legal
costs and attorneys' fees.
These provisions will ensure that the funds provided through Measure J are used in the
manner in which the City intended, while providing the Museum with the flexibility it needs to
develop, renovate and operate the Palm Springs Art Museum Architecture and Design Center,
Edwards Harris Pavilion in a fashion that optimizes its success.
Sincerely, Accepted by:
CITY OF PALM SPRINGS PA SPRINGS ART MUSEUM
David H. Ready, Esq., Ph . Steven Nash
City Manage Executive Director
ATTEST:
mes Thompson, City Clerk
Approved as tQ Form:
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Douglas C. Holland, City Attorney
APPROVED BY C!7 COUNCIL
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