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HomeMy WebLinkAboutAGENDA REPORT 2023 0719 CCSA REG ITEM 09ACITY OF MOORPARK, CALIFORNIA City Council Meeting of July 19, 2023 ACTION APPROVED MOVING FORWARD WITH A 17,500 SQUARE FOOT LIBRARY AND APPROVED PROJECT BUDGET IN THE AMOUNT OF $30,400,000. (ROLL CALL VOTE: 4-1, COUNCILMEMBER MEANS DISSENTING) BY A. Hurtado. A. Consider a Reduction in the Size of the Proposed New Library from 17,500 Square Feet to 14,500 Square Feet; Consider Approval of a Project Budget of $27,682,193; and Consider Amendment No. 2 with LPA, Inc., in the amount of $326,240 for Additional Library Design Services. Staff Recommendation: 1) Approve a reduction in the size of the proposed new Library from 17,500 square feet to 14,500 square feet, approve a project budget of $27,657,193, and authorize using reserve funds, as noted in the staff report, to construct the new Library; and 2) Approve Amendment No. 2 with LPA, Inc. for $326,240 for Additional Library Design Services related to reduction of building size, and authorize the City Manager to sign the Amendment, subject to final language approval of the City Manager. (Staff: Jeremy Laurentowski, Parks and Recreation Director) (ROLL CALL VOTE REQUIRED) Item: 9.A. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Jeremy Laurentowski, Parks and Recreation Director BY: Jessica Sandifer, Deputy Parks and Recreation Director DATE: 07/19/2023 Regular Meeting SUBJECT: Consider a Reduction in the Size of the Proposed New Library from 17,500 Square Feet to 14,500 Square Feet; Consider Approval of a Project Budget of $27,682,193; and Consider Amendment No. 2 with LPA, Inc. in the Amount of $326,240 for Additional Library Design Services SUMMARY Construction of a new City Hall and Library has been one of the City Council’s top ten priorities since 2007. For various reasons the project has stalled over the years, until about 2016 when the City Council included a new Strategic Objective in an effort to move the Library forward: Develop conceptual design proposal for New City Hall and Library including a Civic Center master plan, with Library as initial construction phase. Since 2016, the City Council has approved the Civic Center Master Plan, that confirms the location for the new Library, as well as the architectural style for the Library. The Design Development Plans have been completed and a Program Environmental Impact Report (EIR) for the Civic Center Master Plan is currently underway in order to establish the regulatory framework necessary for the construction of the Library. The purpose of this agenda report is to provide some background to the Library project, provide a status update, seek direction on a proposed reduction in square footage for the proposed new library and establish a budget for the project prior to the development of Construction Drawings. BACKGROUND A new City Hall/Civic Center (Civic Center) has been among the City’s top ten priorities for over twenty years. From 2000 to 2004, the City/Redevelopment Agency of the City of Moorpark was able to acquire enough land for a new Civic Center location adjacent to the Item: 9.A. 156 Honorable City Council 07/19/2023 Regular Meeting Page 2 corner of High Street and Moorpark Avenue. The Civic Center location would ultimately function as a civic “bookend” for the west end of High Street, with the Police Services Center and Ruben Castro Human Services Center being the bookend to the east. The process to design the new Civic Center was started in 2005. In June 2006, a Campus Master Plan (Master Plan) and Building Site Design concept was presented to the City Council. Due to the significance of the project, and the many intricacies associated with the site and proposed architecture, the City Council created an ad hoc committee to work with the architects and staff on preparing a conceptual Master Plan. In January 2007, the City of Moorpark assumed control of the library from the County of Ventura and on May 15, 2007, the conceptual Master Plan was approved by the City Council. The concept included a 35,000 square foot (sq.ft.) two-story City Hall, parking improvements, and improvements on High Street. In addition, the concept included a future option to create a new 25,000 sq. ft. two-story library, south of where the existing library stands today. The concept as designed was estimated to cost $28.4 million (m), with $20m going to the City Hall and associated site improvements, and $8.4m going towards the library. However, at the time the concept was presented, the City was still evaluating the needs for a larger library facility. In July 2007, the library consultant hired by the City completed a space needs study for a future library. The study indicated that in order to provide the amount of space necessary to accommodate the ideal levels of service for current and future patrons, the building would need to be approximately 33,000 sq.ft. in size. This was larger than the size of the building that was provided in the Master Plan. The project stalled as there was not enough funding to build both the City Hall and the Library at the recommended sizes. In 2009, the undergrounding of the open storm drain channel to the west of the proposed Civic Center created additional design opportunities related to the City Hall building, and the potential to construct single-story buildings to save on construction costs. The City was also expected to acquire approximately five acres west of and adjacent to the future Civic Center site as part of the Development Agreement with Essex. The covered channel would allow for potential expanded parking to the west of the site, as well as an opportunity to explore a new approach to the Master Plan and inclusion of the library, particularly since funding would not be available for an expanded library as proposed in the 2007 study. The project Architects were directed to design a Master Plan concept with a single-story City Hall building and incorporating the existing library building, which would be expanded and renovated. The library was proposed to be expanded from its current footprint of about 7,900 sq.ft. to approximately 16,000 sq.ft. Concurrently with these planning efforts, an EIR for the Civic Center Master Plan was being prepared. For many reasons, including design constraints around the historic Tanner Wall and future traffic concerns on High Street and Moorpark Avenue, the EIR preparation turned into a lengthy and time-consuming process. In January 2012, the City Council directed staff to move forward with the expansion of the existing library while the EIR document was being 157 Honorable City Council 07/19/2023 Regular Meeting Page 3 completed. This way the library part of the project would not be further delayed, as the library expansion could be designed and constructed separate from the City Hall. In March 2012, the architect completed a feasibility analysis on the existing library building and the costs associated with renovating the structure versus constructing a new building. The report concluded that the costs to renovate the existing library versus building a new structure were essentially the same. The primary factors that contributed to this conclusion were the grade separation between the existing library parcel and proposed expansion area, as well as the condition of the existing structure, both of which would require substantial construction costs. The expanded library would ultimately become a two-story structure at the grade separation. In addition, the existing library had undergone several expansions and remodels over the years which would require significant funding to bring each remodeled area up to current building codes. At the time, the estimated cost to expand the existing library was $6.7m and the estimated cost to construct a new 16,000 sq.ft. library was $6.85m. In February 2012, the Redevelopment Agency of the City of Moorpark (“Agency”) was dissolved by action of the State. The Agency owned the majority of the property considered for the new Civic Center and therefore the project stalled once again while the issues with the Redevelopment Agency were worked out and the property transfers to the City were completed. In 2016, the issues with the Redevelopment Agency were resolved and ownership of the Civic Center properties were transferred to the City. Additionally, during the development of the City Council’s Fiscal Year (FY) 2017/18 and FY 2018/19 Mission Statement, Priorities, Goals and Objectives, the City Council introduced a new strategic Objective related to the Civic Center in an effort to move the Library forward: Develop conceptual design proposal for new City Hall and Library, including a Civic Center Master Plan, with Library as initial construction phase. The City Council directed staff to move forward with the design and construction of a new Library and considered two locations for a future 18,000 sq.ft. Library on High Street. Both locations were located on property already owned by the City on High Street and neither would require the temporary relocation of the existing library during construction. A location on High Street was a critical component during the selection process in order to maintain civic uses downtown, as libraries can activate a downtown area and contribute to the success of local businesses. Another important component of keeping the library downtown was the proximity of the library to the patrons that utilize it, as well as the proximity to neighborhood schools. Both Chaparral Middle School and Walnut Canyon Elementary School are within walking distance to the downtown area and a large percentage of the patrons that utilize the library are located in nearby neighborhoods. Ultimately, the City Council selected the site on the north side of High Street across from the Post Office, as this location was considered ideal for several reasons: the site is large enough to allow for construction of a single story building, and provide sufficient parking for the new library; the close proximity to the existing library location will make the 158 Honorable City Council 07/19/2023 Regular Meeting Page 4 transition to the new site convenient for library patrons, as well as library staff, and would maintain the library as an integral component of the future Civic Center; the location allows for the expansion of the library if warranted in the future and would allow for uninterrupted service during construction; the library at this location would be a prominent feature on High Street and a major component to the civic bookend referenced earlier in this report; the location directly fronts High Street, providing continuous day and evening pedestrian traffic, and the potential to activate High Street and provide economic support to local businesses. In 2018, the City hired a library consultant to perform a community engagement survey, and space needs assessment to ensure that the ultimate size and layout of the library would meet the community’s needs. Additionally, the City hired an Architect to prepare a master plan for the entire Civic Center site, to guide future development, and also to design the library. The Civic Center Master Plan was approved by the City Council in September 2020, at which time the Architect began preparing the design plans for the new Library. At the same time, the Library consultant began working on the community survey, and community workshops that would inform the library design process and needs assessment. The community input process spanned a little more than three months, received 754 survey responses and yielded a wealth of information regarding the community and its needs for the Library. In March 2021, staff presented two exterior design options for the new Library to the City Council. However, the City Council did not feel that the options were reflective of Moorpark’s character and directed staff to develop an architectural style that was reminiscent of Moorpark’s history and culture. In July 2021, it was evident that a change was needed in order to create the architectural style that would capture the City Council’s and community’s vision, and in December 2021, staff selected LPA, Inc. (LPA) as the new architect for the Library. LPA ultimately prepared two options for the City Council to consider. One option was reflective of Moorpark’s agricultural history (Agrarian Style), and another option was reflective of an early Industrial Style that was noted in some of the existing buildings on High Street, as well as one of the architectural styles proposed for the future High Street Depot project. In June 2022, the City Council approved the Agrarian Style for the new Library, which was confirmed through a community survey that showed a strong preference for this architectural style on High Street. Since the approval of the exterior design, LPA has completed the Design Development drawings, which includes the development of the Library floor plan based on the Library Consultant’s Space Needs Study, the development of the site plan and improvements on High Street, as well as initial studies of all mechanical and electrical systems, including offsite utilities. Additionally, in order to construct the Library, a Program EIR for the Civic Center Master Plan will need to be prepared in order to establish the regulatory framework to construct the Library. A Draft Program EIR was prepared and released for public review and comment on May 22, 2023. The process recently concluded on July 6, 2023, and staff is targeting a date in September or October to take the project to the Planning Commission for consideration. 159 Honorable City Council 07/19/2023 Regular Meeting Page 5 DISCUSSION WHY BUILD A LIBRARY? As mentioned previously, in 2016 the City Council determined that a new Library was warranted due to a variety of reasons. It was apparent that the library could not provide many services essential to the community due to limited space constraints, and the physical building had outlived it serviceable life and was in need of a complete renovation, or replacement. Library visits had increased over 300% under City operation and there was a 600% increase in events and activities. Currently, Library visits exceed 54,000 annually and participation in the various programs offered by the Library are 80% of the State average. Considering the size of the Library is only 31% of the State average, participation at Library events is exceeding capacity. The existing Library was constructed in 1980 and expanded twice over its history, and unfortunately when the Library was transferred to the City of Moorpark from the County of Ventura, the City inherited some deferred maintenance issues. In 2020, during the development of the Civic Center Master Plan, the architect completed a report to determine the viability of maintaining the Civic Center buildings, including the Library. The report confirmed the need to renovate the existing Library due to the life expectancies of all major building systems, as well as substantial Americans with Disabilities Act (ADA) deficiencies. Additionally, staff had a geotechnical report prepared to determine the characteristics of the soil on site. The soils report indicated that the Civic Center soils are susceptible to liquefaction and dry seismic settlement. Since these issues can result in soil settlement of more than two inches the current California Building Code (CBC) requires that this settlement be mitigated through additional ground improvement prior to placing the foundation. The report indicated that ground improvement would be required to a depth of fifty (50) feet for the site. The requirement to improve the soils would add substantial cost to the expansion of the existing building. The existing Library was constructed under the 1976 Uniform Building Code and the expansion of the Library would require soil remediation per the requirements of the current CBC. Prior to 2016, the City considered renovating and expanding the existing structure, however, a feasibility analysis showed that challenges with the site, and bringing the building up to code, made renovation of the existing building only slightly less expensive than constructing a brand-new building. At that time, a 16,000 sq.ft. expansion was being considered and it was determined that the expansion of the existing facility would cost approximately $317/sq.ft., compared to $324/sq.ft. to building new. However, it should be noted that soil liquefaction was not considered in the study, and we now know that renovating and expanding the existing structure would be considerably more expensive due to the remediation work that would be required. Ultimately, in 2016 the City Council directed that a new Library be constructed. It should be noted that in 2022, the City was awarded $4.6m in grant funding through the Building Forward Library Infrastructure Grant (Grant). The Grant was the result of $439m 160 Honorable City Council 07/19/2023 Regular Meeting Page 6 allocated by the California State Budget Act of 2021 to address life-safety and critical maintenance needs of public library facilities across California. Due to the CBC requirements that would need to be addressed to expand the existing Library, in addition to the substantial costs associated with the liquefaction issues, staff had a study prepared to determine the actual costs associated with renovating the existing Library vs. building new. The study confirmed that due to the existing soil conditions, it would cost approximately $937/sq.ft. to renovate the existing building, vs. $725/sq.ft. to build new. These costs only include the construction cost associated with the building and do not include site costs, utilities, furniture, fixtures and equipment (FFE) or any soft costs, such as consultant fees. Additionally, the size of the existing Library is small for a community with Moorpark’s population. At 7,900 sq.ft. it represents about .22 sq.ft. per capita, as compared to the California average of .66 sq.ft. per capita. The current Library does not offer separate spaces for different patron populations, private meeting rooms, or a multipurpose space for library events. Due to the size of the space, the Library can only serve one population of library patrons at a time. For instance, if a children’s program is underway, then the central area of the Library is utilized, making it difficult for anyone who wants to quietly read, study, or use the computers. If the Library hosts an adult program, it is scheduled in the teen area, restricting use of teen computers and collections until the program is over. If two events are scheduled at the same time, or if the Library hosts popular programs that can’t be accommodated in the existing building, the Library schedules the events in the Community Center in order to allow for other uses within the Library. As part of the Library design process, staff initiated an outreach campaign to obtain community input and provide the framework for a Needs Assessment study. The community outreach confirmed the desire for a larger library that provides separated spaces and areas needed to support Library operations. The Needs Assessment study reinforced the need for expanded library services. The responses to the survey were overwhelmingly supportive, with additional responses providing many great ideas for enhanced library services and collections. The review of input and output performance data showed that although Moorpark was in the lowest percentile of square feet per capita, collections per capita, meeting room seats per capita (none), and other input measures, it was significantly higher on the output data. Existing resources and space are strained from heavy use. The library is small but the resources it provides, and programming offered are heavily used despite that size. *statistics gathered based on annual reporting to the California State Library Input per Capita Moorpark California Avg 2022 Var. Square Feet per cap .22 .6882 31% Collections per cap .91 1.9 47% Visits per cap 1.42 2.13 66% Program attendance per cap .1487 .1853 80% Circulation per cap 2.33 5.32 44% Turnover rate (Collection use) 1.61 1.43 112% 161 Honorable City Council 07/19/2023 Regular Meeting Page 7 A copy of the full library space needs assessment can be viewed here: http://moorparkca.gov/DocumentCenter/View/15651/Moorpark-Library-Needs- Assessment--Building-Program Contribute to Vitality of High Street and Economic Development: In addition to providing books, DVD’s, electronic resources, and programming for education and enrichment purposes, the Library can also provide economic benefits and can be important drivers of economic development. Libraries provide resources such as meeting spaces, high speed internet, and training resources for job seekers, entrepreneurs, and inventors. For instance, the Camarillo public library partners with the local Chamber of Commerce to provide a business expo showcasing small business products and services and a panel featuring successful female entrepreneurs that share their marketing expertise. The California State Library has published a report titled “The Value of California’s Libraries”1 https://www.library.ca.gov/wp- content/uploads/2021/09/Value-of-Libraries.pdf. The report lists ten reasons to value libraries and provides an analysis using data and statistics, about how libraries contribute value: 1. Public libraries are community hubs that bring people together and close the opportunity gap by connecting people to essential services and resources. 2. Libraries build and support communities of lifelong learners and help Californians enjoy the social and economic benefits that learning brings. 3. Public libraries deliver a positive return on the funds invested in them. Every $1 invested in a library yields between $2 and $10, with the most common return being between $3 and $6. 4. Libraries are economic engines. They support personal economic development and community development. 5. Books are just the tip of the library iceberg. Through digital labs, makerspaces, career centers and business resources, memory labs, public programs, community partnerships, and online resources, public libraries help communities explore, learn, connect, and have fun beyond their traditional “library” brand. 6. Libraries help individuals and communities stay healthy and well. 7. Public libraries support vulnerable community members, including early learners and families, teens and seniors, veterans, people new to the United States, and people experiencing homelessness or mental illness. 8. Library technology increases digital equity and supports the information needs of a 21st Century society. 9. Library workers are “second responders” in a crisis. Library programs and services build community resilience year-round. 10. Public Libraries are free and open to all. 1 Cole, N., & Stenstrom, C. (2021, August). Welcome to the California State Library - California State Library. California State Library. https://library.ca.gov/wp-content/uploads/2021/09/Value-of-Libraries.pdf 162 Honorable City Council 07/19/2023 Regular Meeting Page 8 The report goes on to discuss the economic benefits of the library by highlighting how libraries support personal economic development by providing opportunities and support for skills development, job seeking, and small business development. Libraries also provide resources for entrepreneurs including market data, business planning services and local business community connections. In addition, they contribute to consumer spending through the “halo spending” effect which gives restaurants, retail, and services that are close to library branches an estimated 23 percent more in spending from library visitors. These are just a fraction of the benefits detailed in the report. Currently the Moorpark City Library can’t fully realize these potential economic benefits due to its size and lack of separate defined spaces to provide these resources. As mentioned previously, in 2022 the Library documented over 54,000 visits by Moorpark patrons, as well as residents from surrounding communities. These numbers are similar to the numbers the Library experienced on an annual basis prior to the COVID-19 pandemic. It is expected that expanding the size of the Library will enable Library staff to increase programming and resources and provide a wider variety of community benefits in general. As Library operations expand, it is anticipated that there will be an increase in the number of daily visits to the Library, providing a continuous source of pedestrian traffic to Moorpark’s downtown and the potential to support local businesses on High Street. Additionally, there is value to investing in High Street. The City has committed to spending funding on enhancing the High Street streetscape, starting with the North Metrolink Parking lot that was completed in 2022. The next phase of this work will include decorative paving, pedestrian calming devices, and streetscape enhancements within the right-of-way directly adjacent to the High Street Depot. In the future, the Hitch Ranch Development will extend High Street west to Gabbert Road, and along the way, will enhance the High Street experience with parks, tree lined streets, and an expansive trail network. Investing in our downtown will promote new business opportunities, solidify the City’s commitment to revitalizing High Street, and develop the civic bookend that has been desired since 2007. LIBRARY CONSTRUCTION COSTS The ability to provide these expanded resources comes at a cost. Since 2016, the cost to construct the library has increased 33%, from a projected $18m to approximately $24m at today’s construction rates. This is a result of natural price inflation, and also the effects of inflation due to the COVID-19 pandemic. In order to move the Library forward, a final construction budget will need to be approved by the City Council. Staff has worked with Balfour Beatty Construction to put together a project budget that moves us forward through the construction of the project. The City has spent several years building up fund balances for major Capital Projects. The fund balances discussed in the below analysis have been collected from one-time development fee revenues and have been set-aside for the construction of major capital 163 Honorable City Council 07/19/2023 Regular Meeting Page 9 facilities, such as the new City Hall and the Library, consistent with City Council objectives adopted to-date. BUDGET Currently, the 17,500 sq.ft. building is projected to cost $30,400,000 inclusive of construction management costs, FFE, contingency, escalation, and permit fees. The City has already allocated $12,856,920 in City project funding, grants, and American Rescue Plan Act (ARPA) funding. There remains a $17,534,079 funding gap. The City has cash reserves in several project funds to close the funding gap, however, at the completion of construction of both the City Hall project and the Library, there will be about $18,250,307 left in the various funds. The graphic below shows how it is proposed that the gap would be funded. Table 1 – Sources and Uses for a 17,500 sq.ft. library COST AND FUNDING ANALYSIS Library Costs Amount NOTES Construction Management $2,000,000.00 Estimated Construction $24,674,294.00 Construction & FFE Contingency $2,467,429.00 10% Escalation $986,972.00 4% Permit Fees $271,305.00 Estimated Sub Total $30,400,000.00 less already allocated -$1,827,122.25 City Hall Improvement Fund less already allocated -$5,688,798.00 ARPA less grant funds -$4,600,000.00 Library Infrastructure Grant less grant funds -$750,000.00 Brownley Grant Funding Gap $17,534,079.75 less Library Facilities Fund -$2,044,328.00 less Endowment Fund -$8,293,080.00 less Special Projects Fund -$7,196,671.75 TOTAL FUNDING GAP $0.00 ESTIMATED FUND BALANCES - POST CONSTRUCTION Fund Name Amount 2004 Library Facilities $ - 2018 Endowment** $ 1,081,000.00 3004 Special Projects $ 21,020,307.25 TOTAL $ 21,020,307.25 Funds needed for City Hall Tenant Improvements $ (7,370,000.00) 164 Honorable City Council 07/19/2023 Regular Meeting Page 10 Fund Balance after Both Projects: $ 13,650,307.25 General Fund (GF) Emergency Reserve $ 4,600,000.00 FUND BALANCES with GF Reserve $ 18,250,307.25 **Endowment Fund Balance Represents Loan Repayment from Police Facilities Fund to be paid back by 2033. . As a sound financial policy for municipalities, the City’s unrestricted Fund Balances should be at least equivalent to the General Fund contribution to the City’s Operating Budget. Notably most municipalities are unable to achieve this level of general fund reserves. At an absolute minimum, three months of operating revenues is recommended. This policy represents a bare minimum amount beyond twenty percent of operating are highly recommended and looked favorably upon by financial professionals. For FY 2023/24, the General Fund (GF) budget is approximately $19.5m. Since the ending GF balance, after completion of the new City Hall Tenant Improvements, is less than the GF contribution to the City’s operating budget, staff determined that a 3,000 sq.ft. reduction of the proposed 17,500 sq.ft. Library is warranted to preserve fiscal sustainability in the City’s reserve funds. In order to reduce the size of the Library and to determine the impacts to the building plan, it will be necessary to enter into an Amendment with LPA to revise the conceptual floor plans, elevations, and ultimately the completed Design Development Plans. The total cost for this work is $326,240. Staff has included an Amendment to LPA’s agreement to reduce the size of the Library from $17,500 sq.ft. to 14,500 sq.ft. In addition, there will be an estimated additional $25,000 for the Library Consultant to revise the building program, and provide additional project related support through construction. Staff will bring an Amendment with the Library Consultant at a future date. Under the reduction scenario, a 14,500 sq.ft. Library is projected to cost $27,682,193 inclusive of construction management costs, contingency, escalation, and permit fees. As discussed previously, the City has already allocated $12,856,920 in City project funding, grants, and ARPA funding. The funding gap in the reduced square footage scenario is $14,791,272. Utilizing the same cash reserve sources, the fund balances at the completion of construction for the smaller library would be $20,993,114, which is more than the City’s FY 2023/24 GF budget and represents a fiscally sound approach toward investing in a new library. 165 Honorable City Council 07/19/2023 Regular Meeting Page 11 Funding scenarios for a 14,500 sq.ft. library is outlined in Table 2 below: Table 2 – Sources and Uses for a 14,500 sq. ft. library. COST AND FUNDING ANALYSIS Library Costs Amount NOTES Construction Management $2,000,000.00 Estimated Construction (3,000 sq.ft. reduction) $21,982,147.00 Construction & FFE Contingency (3,000 sq.ft. reduction) $2,198,215.00 10% Escalation (3,000 sq.ft. reduction) $879,286.00 4% Permit Fees $271,305.00 Estimated Architect/Library Consultant Fees (3,000 sq.ft. reduction) $351,240.00 Library Consultant Fees Estimated Sub Total $27,682,193.00 less already allocated -$1,827,122.25 CH Improvement Fund less already allocated -$5,688,798.00 ARPA less grant funds -$4,600,000.00 Library Infrastructure Grant less grant funds -$750,000.00 Brownley Grant Funding Gap $14,816,272.75 less Library Facilities Fund -$2,044,328.00 less Endowment Fund -$8,293,080.00 less Special Projects Fund -$4,478,864.75 TOTAL: $0.00 ESTIMATED FUND BALANCES - POST CONSTRUCTION Fund Name Amount 2004 Library Facilities $ - 2018 Endowment $ 1,081,000.00 3004 Special Projects $ 23,738,114.25 TOTAL $ 23,738,114.25 Funds needed for CH TI $ (7,370,000.00) Fund Balance after Both Projects: $ 16,368,114.25 General Fund Emergency Reserve $ 4,600,000.00 FUND BALANCES with GF Reserve $ 20,968,114.25 **Endowment Fund Balance Represents Loan Repayment from Police Facilities Fund to be paid back by 2033 166 Honorable City Council 07/19/2023 Regular Meeting Page 12 The 3,000 sq.ft. reduction in the size of the library, allows the City to retain an additional $2.7 million in reserve funds for future Capital Projects, or potential economic downturn. However, it should be noted that there is a high likelihood of future cost increases should the city consider future expansion. The cost to expand the library in the future by 3,000 sq.ft. is likely to cost 30% to 40% more when the expansion project is undertaken ten years or more from now (assuming a steady 4% inflation rate). It is important to note, that in 2016, staff estimated that a new 18,000 sq.ft. Library would use approximately $18 million of the City’s reserve funds. This was based on construction rates at that time and was ultimately determined by an analysis of several libraries that were recently completed or under construction at the time. Since 2016, staff has narrowed the funding gap by over $11m through the two grants awarded to the City, as well as the allocation of ARPA Funds. With the proposed 3,000 sq.ft. reduction and considering the funding that has already been allocated to the Library, the gap proposed to be funded with reserve funds is approximately $16m, which is less than the total Library estimate that was considered in 2016. Additionally, a new City Hall and Library have been on the City Council’s top ten priorities since 2007, and the City Hall has been a priority since approximately 2003. It is worthy to note that both of these high-priority projects will be completed leaving substantial unrestricted reserve funds remaining for future Capital Projects. As we move into FY 2023/24, staff was hopeful to have determined all year-end expenditures in order to determine any additional revenue savings that would support the City’s Special Projects Fund. As a reminder, a substantial portion of the year-end budget savings are typically transferred to the Special Projects Fund to support future Capital Projects. Over the last several years, the transfers to the Special Projects Fund have averaged approximately $1.5 million/year, with significantly more the last two years due to reductions in spending for the economic uncertainty of the effects of the COVID-19 pandemic. It should also be noted that this report does not contemplate future grant funds such as Round II of the Building Forward Library Infrastructure Grant in the amount of $5.4m of which staff has applied for. The first round of funding that staff was able to obtain did not allow for expansion of Library facilities. However, Round II funding does, provided the total grant award from Round I and II does not exceed $10m. Staff is only mildly confident that the City will receive Round II funding since the funding is highly competitive and Moorpark is not in the top tier since we have already received funding during Round I. However, staff is hopeful that the City will receive some additional funding and anticipates receiving notice from the State later this fall. FINANCING There are various ways for cities to finance public improvements. Most of the traditional ways for cities to raise funding (bonds, taxes) require a 2/3 voter approval. There are some other avenues that the City can investigate that do not require voter approval. These other forms of financing include Lease Revenue Bonds and Public Private Partnerships (P3s). Both forms of financing utilize a special purpose entity and a lease 167 Honorable City Council 07/19/2023 Regular Meeting Page 13 structure as a means to pay back the funds used to construct the library over a defined term. However, as with all financing there are added costs associated with issuance of the lease revenue bonds, and the interest rates to pay them back. Recently the City was informed that current interest rates run around 3%. On a hypothetical $15,000,000 revenue bond, the City will have paid over $7,000,000 in interest over the life of the 30- year term. Staff is not recommending financing due to the added interest costs, and the fact that the Library does not have a revenue source to pledge to pay the funds back. The General Fund or other Special Revenue funds would have to be used to cover the debt service payments. ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no further environmental review is required. FISCAL IMPACT Staff is recommending reducing the size of the Library from 17,500 sq.ft. to 14,500 sq.ft. The proposed funding for Library project will utilize $2,044,328 in the Library Facilities Fund (2004). The Endowment Fund (2018) will have a balance of $1,080,000, as this reflects the loan balance from the Endowment Fund to the Police Facilities Fund to pay for the construction of Police Services Center. This loan will be paid back in full in approximately ten years in lease payments from the State of California (Highway Patrol) and receipts from the Police Facilities Fees. The Special Projects Fund (3004) will have a fund balance of $23,763,114. It is anticipated that the City Hall tenant Improvement project will further reduce the Special Projects Fund (3004) by $7,370,000, leaving a Special Projects Fund balance of $16,393,114. Together with the General Fund Emergency Reserve Fund, the City will have $20,993,114 in unrestricted reserve funds at the completion of both projects. Fund Fund Name Current Balance Proposed Expenditure Ending Balance 2004 Library Facilities Fund $2,044,328.00 -$2,044,328.00 $0.00 2018 Endowment Fund $9,374,080.00 -$8,293,080.00 $1,081,000.00 3004 Special Projects Fund* $28,216,979.00 -$11,848,864.75 $16,368,114.25 *proposed expenditure includes City Hall Tenant Improvement estimated cost Staff proposes to use funds already allocated within the Library Project budget (C0056) to pay for the additional design services for the reduction in square footage for the Architect and Library Consultant. No budget amendment is needed at this time. 168 Honorable City Council 07/19/2023 Regular Meeting Page 14 COUNCIL GOAL COMPLIANCE This action is consistent with City Council Goal 1, 1.6: New Moorpark City Library. STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) 1. Approve a reduction in the size of the proposed new Library from 17,500 square feet to 14,500 square feet, approve a project budget of $27,657,193, and authorize using reserve funds, as noted in the staff report, to construct the new Library; and 2. Approve Amendment No. 2 with LPA, Inc. for $326,240 for Additional Library Design Services related to reduction of building size, and authorize the City Manager to sign the Amendment, subject to final language approval of the City Manager. Attachment: LPA, Inc. Amendment No. 2 169 AMENDMENT NO. 2 TO DESIGN PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MOORPARK AND LPA, INC. FOR ARCHITECTURAL DESIGN SERVICES FOR MOORPARK CITY LIBRARY This Amendment No. 2 to the Agreement between the City of Moorpark, a municipal corporation (“City”), and LPA, Inc., a California corporation (“Contractor”), for architectural design services (“Agreement”), is made and entered into on ______________________________. RECITALS WHEREAS, on December 22, 2021, the City and Contractor entered into an Agreement to have the Contractor provide architectural design services; and WHEREAS, on February 2, 2023, the City and Contractor amended the Agreement to increase the compensation for services to be performed by Contractor to one million eight hundred eight thousand one hundred eighty-nine dollars ($1,808,189); and WHEREAS, the City and Contractor now desire to amend the Agreement to increase the compensation for services to be performed by Contractor from one million eight hundred eight thousand one hundred eighty-nine dollars ($1,808,189), by a value of three hundred twenty-six thousand two hundred forty dollars ($326,240), for a total contract value of two million one hundred thirty-four thousand four hundred twenty-nine dollars ($2,134,429), which includes a contingency amount of one hundred fifty-two thousand two hundred fifty-three dollars ($152,253), and document said agreement to amend by jointly approving Amendment No. 2 to the Agreement. NOW, THEREFORE, it is mutually agreed by and between the parties to the Agreement as follows: I. Section 2, SCOPE OF SERVICES, is amended by replacing this section in its entirety as follows: “City does hereby retain Consultant, as an independent contractor, in a contractual capacity to provide architectural design services, as set forth in Exhibits C, D, E, and F. In the event there is a conflict between the provisions of Exhibits C, D, E, F and this Agreement, the language contained in this Agreement shall take precedence. Consultant shall perform the tasks described and set forth in Exhibits C, D, E and F. Compensation for the services to be performed by Consultant shall be on a fixed fee basis in accordance with Exhibits D, E and F. Compensation shall not exceed the rates or total contract value one million nine hundred eighty-two thousand one hundred seventy-six dollars ($1,982,176) as stated in Exhibits D, E and F, plus a contingency of one hundred fifty-two thousand two hundred fifty-three dollars ($152,253), for a ATTACHMENT 170 Amendment No. 2 to Agreement between City of Moorpark and LPA, Inc. Page 2 total contract amount of two million one hundred thirty-four thousand four hundred twenty-nine dollars ($2,134,429), without a written Amendment to the Agreement executed by both parties. Payment by City to Consultant shall be in accordance with the provisions of this Agreement.” II. Section 5, PAYMENT, is amended by replacing the second paragraph as follows: “The City agrees to pay Consultant monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibits C, D, E, and F, on a percentage complete basis. This amount shall not exceed one million nine hundred eighty-two thousand one hundred seventy-six dollars ($1,982,176), plus a contingency of one hundred fifty- two thousand two hundred fifty-three dollars ($152,253), for a total contract amount of two million one hundred thirty-four thousand four hundred twenty- nine dollars ($2,134,429), for the total term of the Agreement unless additional payment is approved as provided in this Agreement.” III. Remaining Provisions: Except as revised by this Amendment No. 2, all of the provisions of the Agreement shall remain in full force and effect. In Witness Whereof, the parties hereto have caused this Amendment to be executed the day and year first above written. CITY OF MOORPARK LPA, INC. _______________________________ _______________________________ Troy Brown City Manager Jon Mills Chief Operating Officer Attest: _______________________________ Ky Spangler City Clerk Attachment - Exhibit F: Library Redesign Fees 171 J:\30500\30647\DOCS\101 Contracts_Proposals\01\Client\SOS Proposals\Library Redesign 23_0621.docx • • • • 172 2 J:\30500\30647\DOCS\101 Contracts_Proposals\01\Client\SOS Proposals\Library Redesign 23_0621.docx 173