City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Community Services
Meeting Date: December 2, 2024
Report #:2410-3634
TITLE
Master Plan for the Cubberley Site: (1) Approval of Professional Services Contract Number C25192924 with Concordia, LLC in an Amount Not to Exceed $631,966 for Development of a Revised Master Plan for the Cubberley Site for a Period of Two Years; (2) Approve Budget Amendments in the General Fund and Cubberley Infrastructure Fund; (3) Approve a Letter of Intent with the Friends of the Palo Alto Recreation Wellness Center; (4) Approve the Workplan for Pursuit of a Local Ballot Measure for the November 2026 General Election to fund the Purchase of Land and Development of a New Community Recreation and Resource Center at the Cubberley Site; CEQA Status - CEQA review will be conducted on the Master Plan.
RECOMMENDATION
Staff recommends that City Council:
1. Approve and authorize the City Manager or designee to execute Contract No.
C25192924 (Attachment C), with Concordia, LLC, for development of a revised Master Plan for the Cubberley Community Center site for a term of two years, and a total amount not-to-exceed $631,966, including $585,860 for basic services and $46,106 for additional services; and
2. Amend the Fiscal Year 2025 Budget Appropriation for:
a. General Fund by:
i. Increasing the transfer to the Cubberley Property Infrastructure Fund by $631,966; and
ii. Decreasing the Real Property Investment Reserve by $631,966; b. Cubberley Property Infrastructure Fund by (requires 2/3 approval):
i. Increasing the transfer from the General Fund by $631,966; and ii. Increasing the Cubberley Community Center Redevelopment Capital Improvement Project (CB-26000) by $631,966; and
3. Approve a Letter of Intent (Attachment D) with the Friends of the Palo Alto Recreation Wellness Center for the purpose of fundraising for a recreation wellness center (gymnasium) at the Cubberley site; and
4. Approve the workplan for pursuit of a November 2026 local ballot measure to fund the purchase of land and development of a new Community Recreation and Resource Center at the Cubberley site.
EXECUTIVE SUMMARY
In October 2024, both the City Council and Palo Alto Unified School District (PAUSD or District) Board of Education approved a Memorandum of Understanding related to the future of Cubberley site. The Memorandum of Understanding (MOU) outlines key terms and conditions for the purchase and future planning of Cubberley. The land purchase, which would transfer ownership of seven acres from PAUSD to the City, is contingent on voter approval of a bond measure in November 2026 requiring a condensed timeframe to develop a master plan for the site by March 2026, conduct polling and financial analysis, and other critical tasks.
To guide the process, staff have developed a workplan outlining the major tasks that must be completed to meet key milestones. Initial first steps include the staff recommendation for the Council to approve a contract with Concordia to begin community and stakeholder outreach and master plan development for the site, and approval of a Letter of Intent with the Friends of the Palo Alto Recreation Wellness Center to begin fundraising for a Recreation Wellness Center or multi-use gymnasium at the Cubberley site. Additional tasks include evaluating site infrastructure, developing an operating model to identify operating costs, and defining the ballot measure and preparing informative communication materials. Funds were set aside in the Real Property Investment Reserve during the Fiscal Year 2025 adopted budget for costs associated with this effort.
BACKGROUND
The 35-acre Cubberley site, located at 4000 Middlefield Road in Palo Alto, operated as Cubberley High School from 1956 - 1979. Beginning in the late 1980’s, the City began leasing portions of the facilities from the Palo Alto Unified School District at the site. Today, the City operates the areas of Cubberley it controls as a community center, using some of the space for classes and activities in arts, culture and athletics, and sub-leasing additional space at City- subsidized rates to various non-profit and community serving groups. The current lease agreement expires December 2024.
Today, the City owns eight (8) acres of the 35-acre site. PAUSD owns the remaining 27 acres, most of which are leased to the City. There are currently 23 tenants and 24 artists leasing space at Cubberley from the City, and dozens of groups renting the theater, pavilion, classrooms, and athletic fields from the City. Combined, these groups provide the community with programs that support health and wellness, childcare, education, and visual and performing arts. The District uses space for educational purposes and staff offices and has leases with some third- party tenants. The parking lot in the southeast corner of the property houses portable trailers as a temporary site for the Hoover Elementary School during construction at Hoover. A current site map is included as Attachment A.
A facility condition assessment was conducted for Cubberley Community Center in October 2022 by an independent firm to assess the current general physical condition of the developed portion of Cubberley. The area assessed encompasses 18.5 acres and consists of 28 buildings and over 500 parking spaces. The facility condition assessment findings describe Cubberley Community Center as being in poor condition, with over $45 million of maintenance work recommended over the next 10 years. The report compares the 10-year maintenance cost for each individual building to the building’s estimated replacement cost to develop what is called the Facility Condition Index. This analysis concludes that all but three of the Cubberley buildings have reached the end of their useful or serviceable lives.
Memorandum of Understanding
There have been several master planning efforts over the years to reimagine and update the Cubberley site, with the most recent one being completed in 20191, however; none of these plans advanced to implementation. In 2023, the PAUSD Board initiated discussions with a letter inviting the City to make an offer to purchase additional acres at Cubberley. Both parties proceeded by creating Ad Hoc committees. The City’s Ad Hoc committee included Council Members Julie Lythcott-Haims (Chair), Pat Burt and Lydia Kou. Their counterparts from the PAUSD Board were Trustees Jennifer DiBrienza (Chair) and Shounak Dharap. The Ad Hoc committees met jointly over the course of 10 months including once with a mediator before agreeing on terms. Both the City Council and District Board met separately in closed sessions in late September in advance of considering the recommended Memorandum of Understanding in public session. The City Council and Board of Education approved the Memorandum of Understanding on October 7, 20242, and October 8, 20243, respectively. The Memorandum of Understanding (MOU)4 outlines key terms and conditions for the purchase and lease of property at the Cubberley site.
The MOU describes a series of steps the City and District will undertake in a collaborative approach to pursue the sale and redevelopment of the Cubberley site and its positive funding impacts on District schools. Contingent on voter approval of a November 2026 ballot measure, the City will purchase seven acres of land at the Cubberley site from PAUSD in 2027 and redevelop the City’s combined 15-acre site as a Community Recreation and Resource Center.
The District intends to use the proceeds from the sale to develop and improve Palo Alto schools. Attachment B shows the 7-acre purchase area.
1 Cubberley Concept Plan 2019; https://www.pausd.org/about-us/committees-task-forces/archived- committees/cubberley-master-plan
2 City Council, October 7, 2024; Agenda Item #AA1; SR #2409-3500, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14437 3Palo Alto Unified School District Board of Education, October 8, 2024; Agenda Item # 6.A.; https://go.boarddocs.com/ca/pausd/Board.nsf/Public
4 Memorandum of Understanding www.cityofpaloalto.org/files/assets/public/v/1/community- services/memorandum-of-understanding_cubberley-2024_final-signed.pdf
ANALYSIS
The Cubberley Community Center provides recreation and educational programs, and cultural experiences to the community using an operating model that leases exclusive space to nonprofits, artists, and businesses at below market rental rates, and rents non-exclusive space to others on an hourly or daily basis. While the programs and services offered are widely used, the buildings and infrastructure systems are aged and require significant maintenance to keep them functioning. At the end of its useful life, acquiring an additional 7 acres of land at Cubberley provides an incredible opportunity for the City to redevelop the site for community services. Staff’s vision is to build a community hub of recreational, educational, and cultural programming and activities for people of all ages and abilities.
To seize this opportunity, the City will need to work on a condensed timeframe to place a measure on the November 2026 ballot to fund the purchase of the 7 acres and the development of 15 acres – the amount the City will own if the ballot measure is successful. The timeframe to place a bond measure on the November 2026 ballot is short and will require a rigorous and focused effort to be successful. Major elements of work to be completed include:
•Execution of the lease amendment with PAUSD – The current lease expires December 31, 2024 and will be extended for five years through a lease amendment. The City will continue to lease the athletic fields, theatre, pavilion, gyms, and some additional rooms for $2 million per year until the school district vacates the premises and then the lease amount will increase to $2.5 million per year. Approval of the lease is on the December 2, 2024 Council Consent Calendar.
•Master planning of the site with Concordia – To support the ballot measure, a master plan for the Cubberley site will be developed, building on the previous master plan completed in 2019 by Concordia. With the Council’s approval, Concordia will continue their work creating a new master plan with community input. This effort is a critical step to inform and engage the community and ensure support to move the project forward.
The master planning process will begin in December 2024 and be complete by December 2025 and will involve re-engagement of the community through a series of public meetings. The City will also engage Rincon to conduct environmental review under CEQA on the master plan. Additional information on the Concordia agreement is included later in this report.
•Advanced evaluation of infrastructure systems to support construction – The Cubberley site is supported by aging infrastructure that will likely require replacement prior to construction of a new community recreation and resource center facility. The evaluation will identify the existing condition and remaining life of systems such as water, wastewater, storm drains, and electrical. It is crucial that the timing of this evaluation be coordinated to inform full project costs and construction phasing. •Defining the ballot measure – The “what, why, and how” of the project must be carefully and strategically crafted for the ballot measure, requiring a comprehensive approach and Council’s support. Consultant expertise is necessary to conduct stakeholder engagement, polling and developing the ballot measure.
•Coordination and support for Friends of the Palo Alto Recreation Wellness Center – The Friends are interested in fund-raising for a new recreation wellness center (multi- purpose gymnasium) at the Cubberley site. A Letter of Intent is the first step in the fund-raising effort and Council approval is recommended. Additional discussion of the Letter of Intent is included later in this report.
•Naming of a new community recreation and resource center – While the Cubberley site has a long history in Palo Alto and many residents have fond memories of attending Cubberley High School or participating in educational or recreation programs, a new name will be desirable that captures the true value of the new center and the benefits it will bring to all residents. For this report, Community Recreation and Resource Center is used, however; a decision on the timing of name selection will be important to coincide with stakeholder engagement and development of ballot language. •Development of an operating plan for a new community recreation and resource center – An operating model should be developed in order to estimate future operating costs and management needs. Different models could include in-house management and operations of the center or engaging in a public-private partnership for operations. •Development of a financial plan for a community recreation and resource center – A financial plan will outline the forecasted cashflow for acquisition, development, debt service (General Obligation bonds, GO bonds), and on-going operation costs/revenues of the community recreation and resource center. Different models could inform the amount of financing, General Obligation bonds, operating costs and rental revenues.
Similar to the operating plan, this fiscal plan should be developed relatively early to plan for future budgeting needs and stakeholder engagement.
•Stakeholder engagement throughout the project – Engagement with the community and key stakeholders is arguably the most important element of this effort as resident support of the project will be needed for a successful ballot measure. Council support and involvement in the stakeholder engagement process will be crucial for the success of the ballot measure. Key engagement activities include re-affirming programming priorities developed in the 2019 master planning process, master plan site development, and ballot measure polling and stakeholder outreach.
There are several key milestones that must be met to meet the goal of placing a measure on the November 2026 ballot measure. The workplan in Table 1 shows the condensed timeline necessary to meet key dates. The Community Services Department will reinitiate master planning for the site, building on work completed in 2019 with Concordia to meet the milestone of completing a master plan by March 2026. Public Works will conduct an evaluation of utility infrastructure system conditions. The City and District will develop formal agreements such as a purchase and sale agreement and lease agreement to implement the intentions described in the MOU. Making the 2026 ballot will require an expedient process to identify which elements of the Cubberley Concept Plan remain relevant while reengaging the community to build on the previous work and complete the appropriate level of CEQA analysis.
Table 1: November 2026 ballot measure workplan and timeline
SCHEDULE ONGOING WORK AND KEY MILESTONES
DECEMBER 2024 Key milestones:
•Approval of a professional services agreement with Concordia, LLC for master plan development. Following approval, funds will be transferred from the Real Property Investment Reserve to the Cubberley Community Center Redevelopment CIP (CB-26000). •Approval of a Letter of Intent with the Friends of the Palo Alto Recreation Wellness Center.
•Approval of Cubberley lease for a term beginning January 1, 2025. •Approve a professional services agreement with Rincon for CEQA analysis and documentation for the master plan.
JANUARY 2025 Ongoing work:
Phase one of the master planning process begins with a focus on revisiting the previous master planning documents, identifying gaps, and stakeholder and community engagement.
Key milestones:
•Develop professional service agreements for polling and ballot- related stakeholder engagement. Funds in the Real Property Investment Reserve will be used for these services.
•Assign Councilmembers to an expected 2025 Cubberley Ad Hoc.
JANUARY 2025 -
APRIL 2025
Ongoing work:
•Begin community outreach and stakeholder engagement on master plan for the Cubberley site (reaffirm programming and obtain input on site layout and design).
•With PAUSD, initiate development of Option and Purchase and Sale agreement. Expert legal support via outside counsel will be needed for drafting of agreement.
•Develop options for a future operating model for the new center. •Develop a future financial model for the new center.
•Evaluation of utility infrastructure systems begins.
Key milestones:
•Complete a Community Outreach and Stakeholder Engagement Plan for development of the master plan.
•Award professional service agreements for polling and ballot-related stakeholder engagement.
•Award professional service agreements for City’s financial/bond advisor and any other needed professional services.
•Obtain Ad Hoc and Council feedback and direction on operating and financial model.
MAY 2025 –
JUNE 2025
Ongoing work/Key milestones:
•Present results of community engagement efforts to Parks and Recreation Commission and City Council.
•Obtain City Council direction to complete initial polling and initial ballot-related stakeholder outreach.
JUNE 2025 –
OCTOBER 2025
Ongoing work:
•Phase two of the master planning begins with development of conceptual designs, community engagement, and concludes with a final Master Plan for the Cubberley site in December 2025. •Continue work on draft conceptual designs, polling, naming, financing, and other strategy-related tasks.
Key milestones:
•Conceptual designs and the final design are presented to Commissions and City Council.
DECEMBER 2025 Key milestones:
Final Master Plan for the Cubberley site.
DECEMBER 2025 –
APRIL 2026
Ongoing work:
•Continue community and stakeholder outreach, draft required documents for ballot measure, complete polling as appropriate. •Continue bond fiscal analysis (sizing and strategy).
•The Cubberley Ad Hoc and City Council to receive updates as necessary on status check-ins, additional rounds of polling, feedback, and policy decisions.
MARCH 2026 Key milestones:
The Council adopts the Master Plan and associated CEQA document for redevelopment of the Cubberley site.
MAY 2026 – JUNE
2026
Key milestones:
City Council approval of November 2026 ballot measure and specific measure language. Final approval including the ballot measure language will need to be submitted to the Santa Clara County Registrar of Voters in early August 2026. Develop informative communications materials.
Concordia Contract to Develop Master Plan
Staff are recommending approval of a contract with Concordia, LLC in the amount of $631,966 for a term of 24 months to reinitiate master planning for the Cubberley site, building on work Concordia completed in 2019. The Council previously approved an agreement5 with Concordia in June 2018 in an amount no to exceed $565,972 for development of a master plan for the 35- acre Cubberley site. A subsequent amendment6 was approved by the Council in December 2018 to expand the project area of the master plan. The project was cost-shared between the City and the School District.
For continuity, staff recommends that Concordia be reengaged for this work as they have a keen understanding of the Cubberley facility, neighborhood, and community and are well- positioned to build upon their previous plan. Concordia worked closely with the City and Palo Alto community during the original contract term and are well orientated on the history and background of the Cubberley site, neighborhood, and community needs. Making the 2026 ballot will require an expedient process to identify which elements of the Cubberley Concept Plan remain relevant while re-engaging the community and completing the appropriate level of CEQA analysis. An exemption to competitive solicitation pursuant to Palo Alto Municipal Code section 2.30.360 was approved by the City Manager.
Based on the Memorandum of Understanding with PAUSD that was approved by both parties’ governing bodies, the master plan must be completed by March 2026. It is impractical for staff to solicit for a new professional service agreement to potentially work with a new consultant on a master plan that will rely significantly and build upon on the work Concordia has already completed. The previous work included four community co-design meetings that were attended collectively by 462 attendants. This process considered nearly 3,000 comments, requests, and questions as well as over 2,000 votes and rankings about different plan elements.
Much of this information can be used for the new master plan. Starting the process over from the start could lead to community distrust in the process and would impact the overall project timeline and the ability to make the November 2026 ballot. 5 City Council, June 18, 2018; Agenda Item #12; SR #9131, www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2018/id-9131.pdf 6 City Council, December 18, 2018; Agenda Item # 11; SR# 9866, https://portal.laserfiche.com/Portal/DocView.aspx?id=39656&repo=r-704298fc&searchid=ecb98b63-a1c6-46fd- b9db-5d5ac9ddd281
Letter of Intent with Friends of the Palo Alto Recreation Wellness Center Recognizing that the City of Palo Alto does not own any type of gymnasium or dedicated indoor sports and recreation wellness center, on March 7, 20227, the City Council directed “staff and the Parks and Recreation Commission (PRC) to conduct public outreach on a new gym, including location, siting, gym features, cost estimates, funding timeline, demand assessment and prioritization of projects.” The Council also directed the PRC to investigate fundraising. An Ad Hoc of the PRC evaluated several locations throughout Palo Alto and identified Greer Park and Cubberley as options for a new recreation wellness center. Staff and the PRC conducted a community survey and held two community meetings to help inform the preferred location, programming, and amenities. Through that outreach, it became clear that community members identified Cubberley as the preferred location for a Recreation Wellness Center. The Friends of the Palo Alto Recreation Wellness Center8 (Friends) formally organized as a 501c3 nonprofit in December 2022 for the purpose of fundraising and building a gymnasium or recreation wellness center in Palo Alto.
Concurrent with the timeline in Table 1 staff will need to work closely with the Friends to ensure coordination exists between the master planning work and the Friends fundraising efforts. The Letter of Intent (LOI) demonstrates the City’s commitment to provide the land for the facility and the Friends’ commitment to raise donor funds for the construction. The LOI includes key elements to be included in a future agreement.
FISCAL/RESOURCE IMPACT
Funding to advance next steps including a master planning process for the site, needed reviews such as CEQA, drafting of formal agreements, and preparation for the November 2026 ballot measure has been reserved in the FY 2025 Adopted Budget for real property acquisition to support the recommended action in this report. Staff recommends a budget amendment to transfer $631,966 from the General Fund Real Property Investment Reserve to the Cubberley Property Infrastructure Fund Cubberley Community Center Redevelopment Capital Improvement Project (CIP CB-26000), where expenses related to this effort will be consolidated, for the Concordia contract. Additional funding transfers from the Real Property Investment Reserve will be recommended in future reports for other consultant and legal support needed as described in the workplan. Funding for future years is subject to City Council approval through the annual budget process.
7 City Council, March 7, 2022; Agenda Item #6; SR #14077, https://portal.laserfiche.com/Portal/DocView.aspx?id=59373&repo=r-704298fc 8 www.parwc.org
STAKEHOLDER ENGAGEMENT
A robust community and stakeholder engagement effort will be conducted by Concordia to develop the design and future programming of a new community center at the Cubberley site.
Polling and other stakeholder engagement related to the ballot measure will also be conducted.
A project webpage was created to provide background and updates on the progress of the project. Community members may sign up for project updates from the website.9
ENVIRONMENTAL REVIEW
The Master Plan will require CEQA review and a contract with Rincon for that work will be coming to the Council for approval in December 2024.
ATTACHMENTS
Attachment A: Cubberley Site Map as of December 2024
Attachment B: Cubberley Land Purchase Area
Attachment C: Agreement No. C25192924 with Concordia, LLC Attachment D: Letter of Intent with the Friends of the Palo Alto Recreation Wellness Center APPROVED BY:
Kristen O'Kane, Community Services Director
9 https://www.cityofpaloalto.org/Departments/Community-Services/Cubberley-Community-Center-Project