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.
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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
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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
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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.
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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
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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%
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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
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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
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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)
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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.
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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
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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
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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.
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Honorable City Council
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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
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