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SR-906-000 (19) W FER 2 8 2006 EPWM: \Share\STAFF REPORTS\FY 05-06\02 28\415 PCH.doc City Council Meeting: February 28, 2006 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Approval of Refined Schematic Design and Community Use Program for the Rehabilitation of 415 Pacific Coast Highway I ntrod uction This report recommends that the City Council review, provide input and approve the proposed refined schematic design for the rehabilitation and adaptive reuse of the property at 415 Pacific Coast Highway. It further presents a proposed community use program and financial projections for Council review and action. The proposed design refinements and community use program reflect continuing community input as requested by the City Council. Backqround Santa Monica State Beach is owned by the State of California and maintained and operated by the City of Santa Monica under a long-term agreement. The five-acre historic property located at 415 Pacific Coast Highway is directly adjacent to the beach, Santa Monica's most recognized and used open space. The property, which was operated as a private beach club for many years, has been vacant, boarded and fenced for twelve years. A community planning process that resulted in a reuse plan was approved by the City Council in 1999. In 2004, the Annenberg Foundation granted the City $21 M so that the 1 88 FEe 2 8 lW1Fi site could be redeveloped as a public recreation facility. On June 28, 2005, the City Council authorized the City Manager to enter into a design- build contract with Pankow Special Projects for preconstruction services. Its team includes design architect Frederick Fisher and Partners, landscape architect Mia Lehrer Associates, historic consultant Historic Resources Group, and project artist Roy McMakin. On July 28, 2005, a public open house was held on the site. On October 1 and 2, 2005, public workshops were held on-site. The two-day event presented an emerging design and involved participants in small group workshops focusing on specific aspects of the project. A web site (415pch.smgov.net) was established that posted notes from the workshops and continues to provide the public with periodic updates to the project's status. The interactive website allows the public to post comments and provide feedback on the emerging design. Design presentations on the status of the project have been made to California State Parks, the State Office of Historic Preservation, the Annenberg Foundation, Landmarks Commission, Recreation and Parks Commission, Arts Commission, Commission for a Senior Community, Disabilities Commission, Social Services Commission, Pier Restoration Corporation, Santa Monica Convention and Visitor's Bureau, Caltrans, and California Coastal Commission. The response from these bodies has been positive. Meetings have also been held with the Palisades Beach Road Property Owners Association. 2 After hearing public comment, Council approved the schematic design on January 10, 2006. At that time Council requested that the project team return with additional design details and also provide financial projections and potential operating subsidies. The Council also asked City staff to meet with project neighbors to continue the dialogue addressing their concerns related to the development of the site. Staff from the Department of Community and Cultural Services and the City Attorney's office has met with neighbors on three occasions since then, and there have been numerous other communications. Discussion Project Goals The continuing development of the 415 PCH project design is guided by the goals of the reuse plan. The reuse plan envisions an exciting public place that: . Preserves the history of the site . Encourages a "light touch" on the site . Creates a community-oriented destination . Provides public recreational activities . Creates a range of uses . Encourages diverse users . Provides year-round use . Links to the regional open space network Additional Design Detail The following narrative and attached design documents (Attachment 1) respond to the Council request in January to return with additional design detail prior to review by the Planning and Landmarks Commissions. The design includes a series of inter-related 3 indoor/outdoor spaces that encourage public beach recreational use year-round and also provide for targeted event and cultural programming during non-peak periods. Issues of scale, material selection and durability have been developed to achieve a strong public identity for the project. Concrete, concrete block, wood panels and tile will be used to evoke the permanence associated with other important community structures. Window and door systems clad in wood on the interior and aluminum on the exterior and trellis screens will add warmth and detail reminiscent of the construction and scale of the North House and original Mansion while providing durability. Glass walls are planned throughout the project for both their physical and temporal qualities. The site will be identifiable from Pacific Coast Highway by a row of Washingtonian Palms along its boundary. The facility will be accessed from the parking lot to the south through the Entry Pavilion that will contain staff offices, storage, and relocated public restrooms. The number of restroom stalls will be equivalent to those located within the existing public restroom building at the north end of the site and will include family changing rooms. From this point, visitors may enter the controlled pool area or access the beach area to the west or garden area to the north and east. The beach area will be defined and organized by a series of boardwalks and concrete pathways providing universal access and pedestrian circulation from the parking lots to the pool, garden areas, and towards the ocean. The Beach Walk, composed of boardwalks and enhanced concrete paving, will provide access from the parking areas. The alignment 4 of the Beach Walk follows the historic 1921 Mean High Tide Line and historic bulkhead. The Ocean Walk will provide access from the facility to the existing bike path and beyond toward the ocean. Beach volleyball and paddle tennis courts will be located at the north end of the site. The existing beach restroom will be demolished. A new, low slung, 1,000 square foot concession/storage building will be constructed slightly to the west. It will supply beach amenities such as balls, sunscreen, and beach chairs to the public. On the south side of the Ocean Walk, a Children's Play Area will include play equipment and poured-in-place rubber safety surfacing and paths providing universal access to all equipment. Showers and foot washes will be located at the north and south entrances to the beach from the parking lot, the public restroom area, and the intersection of the Beach Walk and Ocean Walk. The facility amenities include the North House, the Event House, and the Pool and Pool House. The historic North House will undergo rehabilitation. The first floor will be dedicated to meeting spaces, an interpretive center, a small catering kitchen and office functions. The second floor will provide space for meeting rooms (two with ocean views) and associated support spaces. The North House Garden, located immediately to the west, will provide an intimately scaled location for small gatherings. The Garden Terrace, located between the Event House and the North House, will be a 5 level landscaped area. A solid masonry or cast-in-place concrete wall at the east side of the Garden Terrace will act as a sound buffer to Pacific Coast Highway. This wall will be articulated with a re-circulating water element. On the north side of the garden, an existing retaining wall will be retained. The existing pathway from the service drive to the North House entrance will be reconstructed to eliminate the current step up to the porch. The western edge of the Garden Terrace will be shaded by a grouping of palm trees and defined by a railing, separating the Beach Walk and the Garden Terrace. The Event House is designed to accommodate recreational, interpretative and cultural programs and classes, meetings and retreats, and small social gatherings and functions. Its amenities include a 100 person meeting room, a 50 person meeting room, and a 50 person multi-purpose room, as well as a food staging area that includes counter space with a sink, electrical outlets and refrigeration. The Pool enclosure will consist of a combination of eight foot high fencing and gates surrounding the Entry Pavilion and Pool House. The Pool House will accommodate men's, women's and family changing rooms, lockers, equipment/chemical storage and office functions. The second level of the Pool House will provide a viewing deck and recreation room for informal activities in the summer and small gatherings and meetings in non-peak periods. The historic Pool and surrounding marble paving will be maintained and restored. The historic concrete deck pavers with tile inserts will be removed for pool rehabilitation and replaced in kind. Deck areas on the west and east sides of the Pool will be expanded 6 for chairs and chaise lounges. A sloping walkway and integrated stairs will provide access to the enclosed picnic and water play areas to the north. The Pool will be heated via a solar collection system. The existing parking lots will be repaved and landscaped. A perimeter wall along PCH will be constructed using durable materials. The design will reflect a rhythm similar to the original, historic fence, yet will be compatible with the contemporary architecture and programmatic needs of the site. Plant materials will be selected for coastal zone compatibility and minimal irrigation requirements. The Draft Environment Impact Report identified a full traffic signal at PCH and the south parking lot as a possible mitigation measure to address. vehicular access to the site. Discussions regarding the installation of this signal are currently underway with Caltrans. In order to minimize delays to through traffic, providing a signal that is demand-activated and integrated into the signal progression along PCH will be pursued. The Project will incorporate several sustainable features with the goal of attaining a Leadership in Energy and Environmental Design (LEED) Silver rating in accordance with the policies articulated in the Santa Monica Sustainable City Program and Green Building Guidelines. Strategies include water efficiency measures, control of light pollution, selection of materials with high recycled content and no or low Volatile Organic Compounds (VOC's), dual flush toilets, waterless urinals, use of natural light and 7 ventilation, solar water heating. Proposed Design Refinements Since Council approval of the schematic design In January, the project team has concentrated on the community use aspects of the project and corresponding design refinements. In addition, continuing discussions with project neighbors have resulted in design responses to address their concerns. These concerns have focused primarily on three key areas: site security and management, event impacts, and traffic safety. Design refinements addressing site security and management include: · Demolition and relocation of existing public restroom to controlled area · Gating of Public Restroom entries · Perimeter railings and fencing · North Parking Lot landscaping · Installation of security cameras · Directed building and parking lot lighting · Closure gates at all parking lots · Gates at all entries to open space areas east of the Beach Walk · Reduction in size of the Event Court and redefinition as the Garden Terrace · Addition of enclosed Family Picnic Area adjacent to Pool · Timers for parking lot safety lighting · Closure gate to North Parking Lot at North House port-cochere · North Parking Lot landscaping to include screening west of North House · South Parking Lot sound wall · Concession Building roof design considerations Design refinements addressing event impacts include: · Reduction of Event House size by up to 1,000 sf · Elimination of physical connection to the Pool House · Elimination of Event House Viewing Deck and exterior stairs · Elimination of large Event Room in Event House and reconfiguration of interior spaces ./ Multipurpose Room (capacity 50) 8 .,/ Meeting Room 1 (capacity 50) .,/ Meeting Room 2 (capacity 100) .,/ Interpretative Gallery Space .,/ Refrigeration, Ice Machine and Counter Space for Catering · Limitation on square footage of individual site meeting rooms, not to exceed 2,000 sf · Location of trash enclosures away from neighbors As to traffic safety, staff and the Annenberg Foundation are working with Caltrans to attempt to secure a traffic light to facilitate left-hand turns in and out of the property. Proposed Community Use Program Guided by the Council-approved project goals, the following proposed community use program will serve as the basis for further design development and begins to more clearly articulate the way in which the site will be operated, once open to the public. The pre- eminent purpose of this site is to promote the Santa Monica beach experience. The site provides a rare opportunity for community members and visitors to enjoy a quintessential Southern California beach experience while at the same time sensing the site's important and colorful history. In the summer, it promotes "an easy day at the beach" by providing typical beach recreation and offering conveniences such as take-out food service, beach concessions and advanced reservations for swimming, picnicking, volleyball, and paddle tennis. In the winter, uses focus on indoor retreats, meetings, social functions and cultural programs while still providing ocean views and access to open spaces designed to complement these activities. At the same time, beach volleyball, paddle tennis, the children's play area and the popular beach cafe will continue to draw those local residents who have already discovered the benefits of this site during the summer season. 9 Key to providing this optimal beach experience is a well-managed operation that balances the desire for an open and accessible public place with the realities that come with intensively used and popular recreational areas. The operation must also be sensitive to the site's neighbors. In developing operating parameters, extensive input was received from neighbors, as well as City staff who operate and maintain public facilities and event managers of private and public retreat and meeting facilities. Neighbor input proved to be extremely valuable in clarifying use issues and developing solutions. The neighbors' operational concerns focused again on the areas of site security and management, event impacts, and traffic safety. Additional concerns centered on the need for formal mechanisms to ensure City compliance with Proposition S (establishing permitted uses within a Beach Overlay Zone) and the operating plan and the need for administrative and legal remedies. All input was evaluated in light of the Council-approved project goals. Proposed operating parameters governing community use that address site security and maintenance include: · Public Restrooms and Sand Area site east of the Bike Path closed at dark - year round · General public parking closed at dark - year round · Public parking fee incentives to use shuttle service during high season from remote lots (under review) · Facilities east of the Beach Walk closed at dark except for booked uses - year round · Priority use of the Garden Terrace for groups booking meeting facilities - weekdays, low season · Public use regulations for the Garden Terrace 10 · Use of Children's Play Area restricted to children and accompanying adults (existing ordinance) · Increased management of adjacent Palisades Bluffs - maintenance and enforcement (under review in the context of the City's Budget) · Year-round program and site maintenance staffing · Nighttime security staffing · Daytime ranger staffing, peak use periods · Fee-based booking for North House and Event House · Priority Reservation System for public use of Pool and Family Picnic Area, and Courts · User fees for Pool and Family Picnic Area · Advanced reservation fee for Courts Proposed operating parameters addressing event impacts include: · Focused Use of Event House ./ High Season (June - September) - Recreation and Fitness, Cultural/Interpretative Programs and Exhibits, Weekday Meetings, No Social Functions ./ Low Season (October - May) - Weekday and Weekend Meetings and Social Functions, Weekend Afternoon Cultural Programs, · Organized food service (limited to 2,000 sf at any given time on site except for existing beach cafe) · Exemption for incidental food service · Limitation on event hours (10 pm weekdays, 11 pm weekends) · Limitation on event parking lot hours (11 pm weekdays, 12 pm weekends); managed and staffed event parking required; event permit passes required for evening events · Organized food service provided by on-site concessionaire and approved offsite caterers under contract with City · Event furniture provided by the City; prohibition against outside furniture rentals · Prohibited use of outdoor spaces for event set up except for designated, limited parking areas · Alcohol use restricted to beer and wine only; staffed bar service only (caterer permit), for booked indoor events only; service to end % hour before end of events · Use of amplified music outdoors, for limited City day-time events only · Enforcement of City noise ordinance limits · Event parking use of middle parking lot before neighbor-adjacent lots 11 Proposed communication strategies include: · Posting of monthly event schedule on the project website · Monthly e-mail event notifications to neighbors · Periodic neighbor meetings with City staff · Annual report and public hearing - City Councilor Recreation and Parks Commission Administrative and Legal Remedies Legal staff advises that numerous possibilities exist for both administrative and legal remedies. As to administrative remedies, neighbors may lodge complaints about the facility's operation with City staff. Additionally, Council may wish to direct staff to report periodically on the operation of the facility and to include information about any complaints received from neighbors and actions taken to address complaints. Such Council review would provide an opportunity for neighbors and others to express any concerns they may have about operation. Alternatively, Council could direct the Recreation and Parks Commission to conduct periodic hearings on the facility's operation. Another possibility for administrative remedies has been suggested and considered. The Palisades Beach Road Property Owners Association (the Association) has suggested the creation of a new public body to oversee the facility in the same way as the Pier Restoration Corporation oversees operation of the Pier. However, staff does not believe that it is necessary or desirable to create a new body to oversee a single recreational facility, particularly in this case since the City's contract with the Annenberg Foundation imposes very high performance standards. As to legal remedies, several potential remedies already exist. For instance, permit conditions may be imposed to reflect aspects of the plan and operating standards which 12 protect neighbors' quality of life. If these conditions are violated, permit revocation is a possible remedy. Also, if, in the future, operation of the Event House changes significantly from what is now proposed to the point that Proposition S constraints become an issue, neighbors could assert claims under that measure. Likewise, if operation of the project were to change and somehow deteriorate to the point that neighbors' quality of life became gravely impacted, civil nuisance remedies might be available to them. However, staff notes that this scenario is not a realistic possibility given the City's commitment to the Annenberg Foundation. Members of the Association have suggested that other legal remedies be created. For instance, they have suggested a contractual agreement with the City or a stipulated judgment, enforceable in court. Given the availability of other administrative and legal remedies, and the necessity of maintaining some level of flexibility in the project's operation, City staff does not believe that it is advisable or necessary to create additional remedies. Most recently, neighbors have suggested establishing a procedure whereby an action to enforce permit conditions could be brought in court to ensure a neutral forum. The City Attorney is assessing the legalities of this proposal. Next Steps Action to certify the Final Environmental Impact Report and consider the project's development review permit and other relevant discretionary actions is scheduled for the March 15th Planning Commission meeting. Subsequently, the Landmarks Commission will 13 take action on the required Certificate of Appropriateness. Coastal Commission review is anticipated in Spring 2006. Staff will return to Council in Fall 2006, at the completion of the design development phase, for approval of the proposed guaranteed maximum price (GMP) and activation of the second phase GMP Amendment of the design-build contract. Construction is scheduled to commence in early 2007 with a projected opening date of January 2009. This ambitious timeline has been developed in order to comply with conditions of the City's Grant Agreement with the Annenberg Foundation. BudqeUFinanciallmpact Construction Cost The proposed refined schematic design achieves a high level of responsiveness to the goals of the reuse plan and to community members and site neighbors who have participated in the recent community design process. Based on this schematic design, the current total estimated project cost is $33.3M which includes previously approved preconstruction and design fees, direct owner costs, construction and furniture, fixtures and equipment (FFE). Approximately $24.6M of the total is for construction related activities which includes construction, contractor's fee, contractor's contingency, bonds/insurance/taxes, permits and a 10% escalation factor. The currently available funding sources total approximately $23.1 M. This includes $21 M in funds awarded by the Annenberg Foundation in December 2004. The City included an additional request of $4M in its original grant request to the Foundation in anticipation of 14 future design elements that would enhance the quality of the project. Recent close conversations with the City have caused the Foundation to strengthen its financial commitment to ensure that the project is community-responsive and is constructed and operated at the highest level of quality. The Foundation is currently considering the release of the additional requested $4M as well as an additional 15% grant contingency of $3.6M for a total grant increase of up to $7.6M. This will reduce the project shortfall to $2.6M. The team is continuing to look for other value engineering opportunities and additional City funding sources. If a funding gap still remains as project estimates are refined during design development, additional value engineering options will include reductions in the square footage of proposed meeting spaces and amenities, and further reductions in outdoor hardscape. Operating Revenue and Expense Projections At its January 10th meeting, the City Council asked staff to provide an operating pro forma for the site with detail on projected operating revenues and expenditures and the possible level of City subsidy that would be required if revenue-producing events were minimized to respond to neighbor concerns. The attached 415 PCH Revenue and Expense Pro Forma (Attachment 2) sets forth a "base program" that is consistent with the operating parameters articulated in this report. This base program conservatively estimates the number of booked, revenue-producing events and limits operating expenses to site and event management, open space and facilities maintenance, site 15 security, and seasonal recreation. The base program is revenue neutral (the attached pro forma reflects positive net revenue of $18,000 annually). A number of "variables" have also been identified in the attached analysis thafwould either result in an annual operating subsidy or an increase in the net revenue generated. These variables continue to assume compliance with the project's proposed operating parameters. Variables are presented that either further enliven the site and maximize public access and use (cultural and interpretative programming, extended pool hours, additional site security, seasonal site shuttle service and reduced event rental rates) or those that increase revenue generation (increased event bookings). These variables have been presented separately to provide information on the financial impact of various policy and program considerations so that Council can provide direction on those variables that should be addressed as the full operating plan is finalized. For instance, adding those variables that enhance public access and further address key goals of the reuse plan result in a total annual operating subsidy of $340,000. Conversely, if only variables that generate additional revenue were applied to the base program, the annual net revenue would be increased to $217,000. If all variables are applied together, the annual operating subsidy would be $141,000. This subsidy increases to $403,000 if current onsite revenues generated from public parking and beach concessions are not attributed to the site. These revenues currently are allocated to the City's Beach Fund to support general beach maintenance costs. 16 Final budget recommendations for 415 PCH operations will be included in the City Manager's Proposed City Budgets in the coming three years. Council comment on the attached financial information will inform those budget proposals. Recommendations City staff recommends that the City Council approve the refined Schematic Design and the operating parameters presented in this report and provide policy direction on the extent to which variables contributing to an ongoing operating subsidy should be considered in developing the final Operating Plan for the site. Prepared by: Craig Perkins, Director Anthony Antich, P.E., City Engineer Lauren Friedman, A.I.A., City Architect Department of Environmental and Public Works Management Barbara Stinchfield, Director Karen Ginsberg, Assistant Director Department of Community and Cultural Services Steve Stark, Director Finance Department Attachment 1: Design Documents Attachment 2: 415 PCH Revenue and Expense Pro Forma 17 (fJ(fJ(fJD.. 1-1-1-:] 0000 WWWa: JI-t::(9 OII(fJ a:OOW D..a:a:o .J<(<(a: :;!;(fJW:::J oa:~O ~~ofiJ (fJf-(fJa: ~a:Oo OO:~O: >CO...JO ZZ(fJf- o:<(~~ a:<( ~o (fJ0 -(fJ LL(fJ >C<( ~ + a: a: Ww Oa: ~m LL.J <( ~ Z<o <( 15 --I N ll.. c5 W '": ~ ~ :> ~ 'oS Z o i= ~ Z W (/) w a: ll.. --I <:5 Z :J J:O Uu ~~ ;<:5 z co ::i ~ ll.. <Xi W N !::: oj (/) ~ I- :> Z ~ ~ ~ a: :J u z o i= ~ z w (/) w a: ll.. --I <:5 Z J::J uo D..U 1Oi:: ;<:5 z ::i ll.. a: o 9 LL l- (/) a: u: (/) (9 z 15 --I :J a:l $: w z .~ :J ~ ". 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