Agenda Item AGENDA STAFF REPORT ASR Control 23-000715
MEETING DATE:	08/22/23
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	1
SUBMITTING Agency/Department:	County Executive Office (Approved)
Department contact person(s):	Thomas A. Miller (714) 834-6019
	Dylan Wright (714) 480-2788

Subject: Garden Grove Main Branch Library Lease

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: Property Tax (100%)	County Audit in last 3 years: No
Levine Act Review Completed: Yes

Prior Board Action: N/A

RECOMMENDED ACTION(S):

Find that the proposed project is categorically exempt from California Environmental Quality Act (CEQA), Class 1, (Existing Facilities) pursuant to CEQA Guidelines, Section 15301.

Approve and execute the proposed Lease with the City of Garden Grove for approximately 21,484 of rentable square feet located at 11200 Stanford Avenue, for the Garden Grove Main Branch Library, for a term of 15 years with an estimated commencement date of September 1, 2023, with the option to renew for two additional ten-year terms.

Authorize the Chief Real Estate Officer or designee to execute subsequent lease amendments and exercise options that make non-monetary changes and or monetary changes, which do not increase County liability, or costs by more than $75,000 per year.

SUMMARY:

Approval of the new lease with the City of Garden Grove and Orange County Libraries at 11200 Stanford Avenue will allow for improvements of the library building and support the continued operation of free public library services for the next 15 years.

BACKGROUND INFORMATION:

Since 1921, the Orange County Public Libraries (OCPL) system has operated branch libraries throughout the County of Orange (County) on behalf of its member cities, which includes the City of Garden Grove (City). The current OCPL Main Branch at Garden Grove is located at 11200 Stanford Avenue (Main Branch Library).

In 1967, the City and County entered into a lease agreement, whereby the County agreed to operate the 21,484 rentable square foot (RSF) Main Branch Library as a part of the OCPL system. This lease agreement was subsequently amended by the City and County in August 20, 1985; October 17,1995; May 20, 1997; and December 12, 2000 (Current Lease).

The City and County have agreed to the new 15-year lease (Proposed Lease) for OCPL to update and continue to operate the Main Branch Library.

This year, OCPL applied for The Building Forward Grant Program, funded by the State of California (State) Budget Act of 2021, that allocates one-time funds in a competitive grant process to address life safety, critical maintenance and infrastructure needs of public library facilities. Qualified projects must meet pre-determined State criteria defined as those addressing significant health and safety risks to patrons or staff. Examples of projects slated for these facilities include accessibility upgrades, roof replacements, repair or replacement of HVAC systems, building automation systems and security and safety systems (OCPL Enhancements).

The State awarded the Main Branch Library $2,718,498 consistent with the grant program and for the above-described OCPL Enhancement upgrades (Grant Funds). On October 4, 2022, the Board of Supervisors authorized the OC Community Resources (OCCR) Director or designee to accept the grant funds, sign documents applicable to this award, and administer the program utilizing said funds.

Subsequently, on November 4, 2022, the California State Library sent OCPL, a complete and final funding package that included final grant award letters and grant funding agreements. In order for the Main Branch Library to receive this funding, the funding package requires the submittal of a signed lease for library services that is effective for a minimum of 10 years commencing after the OCPL Enhancements are completed. The term of this Proposed Lease is fifteen (15) years, consistent with the Grant Funds, commencing on September 1, 2023, and continuing through August 31, 2038. The Grant Funds must be expended no later than March 2026, so the parties have scheduled design to begin in 2023-2024 and construction of the OCPL Enhancements to begin 2024-2025. The County and City will cooperate on developing the design of the ultimate OCPL Enhancements, which will be bid out and constructed by the County.

Based on the continued needs of the City, and its community, and to ensure continuity of library services, CEO Real Estate and OCPL are recommending the Proposed Lease, which is rent-free, includes a 15-year term, and two ten-year renewal options. Under the terms of the Proposed Lease, the City will be responsible for all the library maintenance after completion of the OCPL Enhancements, including the air conditioning units; however, the County will be responsible for the cost of janitorial supplies and replacement of LED lamps and replacement of all equipment and personal property and will pay directly for its own internet, telephone and other data services. The terms of the Proposed Lease are in compliance with OCPL and Library Advisory Board policy regarding major maintenance by the building owner.

The City approved the Proposed Lease during its regular City Council meeting on July 25, 2023.

Compliance with CEQA: The proposed project is Categorically Exempt (Class 1) from the provisions of CEQA pursuant to CEQA Guidelines Section 15301, because it involves leasing a public facility, involving negligible expansion of existing or former use.

FINANCIAL IMPACT:

The Proposed Lease is rent free. Other costs associated with the Proposed Lease include janitorial costs, lighting and utilities and are included in the FY 2023-2024 Budget Fund 120 and will be included in the budgeting process for future years.

STAFFING IMPACT:

N/A

REVIEWING AGENCIES:

OC Community Resources

ATTACHMENT(S):

Attachment A - Lease
Attachment B - Lease Summary
Attachment C - Acquisition Questionnaire