Agenda Report
Fullerton City Council
MEETING DATE: OCTOBER 4, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: ERIC J. LEVITT, CITY MANAGER
PREPARED BY: DAISY PEREZ, DEPUTY CITY MANAGER
TAYLOR SAMUELSON, ADMINISTRATIVE ANALYST II
SUBJECT: HUNT BRANCH LIBRARY PARTNERSHIP OPPORTUNITY INFORMAL RFP UPDATE
SUMMARY
City Council directed staff to produce an informal RFP to identify a potential partner to operate the Hunt Branch Library site with the City on July 19, 2022. The informal RFP process identified key aspects of programming in-line with the results of an ad-hoc committee as well as multiple community visioning sessions and previous work done on the project. The informal RFP was distributed to approximately 60 organizations and posted on our website as well as social media. As of writing this report, three entities have proactively shown interest in the site following the guidelines. Staff is anticipating receiving any proposals prior to the City Council meeting on October 4, 2022.
In addition, the City Manager has received a request from Council Members to have the City work with potential community groups to devise a plan for the City to operate and program the facility.
RECOMMENDATION
Approval of the City Manager to move forward and work with Hunt Ad Hoc Committee in reviewing any proposals.
Alternative Motion.
Approval of the City Manager working with the Library Director and community groups in putting together a City operation proposal for City Council consideration.
CITY MANAGER REMARKS
The City Manager is seeking direction on several elements.
Consideration of authorization to work with the appointed Ad Hoc Committee on evaluating any proposals.
Consideration of authorization to put together a City led proposal with other financial and programming partners.
The City Manager’s goal is to bring back a program that would meet the diversity of activities the communities is interested in, combined with a financially sustainable model. The baseline operation budgets included in the report do not include any programming costs at this time – these would be evaluated based on future direction from City Council.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability.
FISCAL IMPACT
There are potential fiscal impacts if City Council provides direction to provide for certain operations beyond the partnership agreement language. The original site was closed in 2013 due to fiscal constraints relating to operation of the site, and funding would need to be redirected from other programs.
The Fiscal Impact will be more determined when the staff returns after evaluation occurs.
DISCUSSION
The Hunt Library has remained a focus for staff in identifying potential partners for operation and revitalization. As identified in previous staff reports, the City contracted with ArtsOC to survey the community regarding the Hunt. The City created a Library Ad-Hoc Committee which envisioned repurposing the site to provide a variety of compatible and creative uses. The Ad-Hoc Committee envisioned a facility that brought out the community in sharing knowledge and learning, encouraging curiosity and serving as a hub for activities, programs, events and classes. Staff considered the result of 36 stakeholder interviews, three visioning sessions and over 800 responses to surveys in developing the plan for the Hunt. On July 5, 2022, City Council directed staff to return with updates on security, construction and tenancy of the site. On July 19, 2022, staff provided an update and City Council provided direction to pursue an Informal RFP process to identify a viable partner to operate the site.
Update on Informal RFP Status
Since late July, staff has completed outreach to nonprofits, various groups and stakeholders to identify a viable partner. Approximately 60 organizations (Attachment 2) were contacted. These groups range from museums, universities, nonprofits, as well as development firms. Staff sought to assess these groups interest and seek proposals. Each organization was presented with the informal RFP guidelines (Attachment 1) referenced on the July 19, 2022 City Council meeting. Additionally, site visits were offered to all organizations, and social media communications were undertaken.
The informal RFP guidelines address the various community goals as well as security, vandalism mitigation, active programming and financial viability. As of the time of this report, three organizations have shown interest in the site. Any proposals received will be communicated at the October 4, 2022 City Council meeting.
The initial deadline for partnership applications was October 1, 2022. Overall, the intentions behind the partnership are to align with City Council’s direction while also achieving the economically sustainable approach of operating the Hunt facility.
Update on Structural Improvements
The site is currently undergoing structural improvements that will create an ideal location for a partner. Improvements/upgrades include work to the building facade, roof, interior finishes, plumbing, fire suppression system, HVAC, electrical, communication equipment, landscaping, site paving, site lighting and general accessibility. Funding for these improvements has been made possible through two grants provided in 2019 and 2021. The grand total of these grants is approximately $5.25 million.
Improvements are moving forward on the site as the roof phase is completed along with water and sewer systems. At the July 19, 2022 City Council meeting, the immediate need to address fencing was highlighted and staff expedited construction accordingly. The fence is currently under construction and is slated to be completed sometime in November. To mitigate any vandalism in the interim, additional safety measures have been implemented including added security and regular checks from Police units. The building phase has begun and those upgrades will likely be complete sometime in May 2023. The building upgrades include interior improvements as well as Americans with Disabilities Act (ADA) compliance. Upon completion of all City improvements, the site will be ready for a high-quality partner to begin operations.
Hunt Library Site Improvements Status Update
CIP Phase
Description
Current Status
Phase I - Roof
Rehabilitation of Roof, New Installed Foam, Communication Conduits, Flashing, Drainage, Finishes Construction - Closeout
Phase II - Water/Sewer
Installation of New Water Line, Water Meter, Backflow Preventer, Fire Hydrants, Sewer Line Complete
Phase III - Building
Interior Improvements, Compliance with ADA, Finish and Structural Repairs, Mechanical, Electrical, Lighting, Communication, Security, Plumbing Upgrades, Measures to Mitigate Hazards Awarded: Const Sept 26 - May 2023
Phase IV - Fencing
Upgraded Security Fencing & Gates Throughout Property. 8 Foot Steel W/Pickets & Automatic Vehicular Gates at Basque.
Awarded: Const Sept 19 -Nov 30, 2022
Phase V - Site
Modification and Restriping of Parking Lot, Fire Ingress/Egress, Modification to Parking Lot Lighting, Accessibility, Trash Enclosure, Minor Irrigation/Landscape, Additional Fencing In Design: Construction TBD
In addition to the site improvements being undertaken by Public Works, the Library department has also applied for a Universal Services Administrative Company (USAC) grant to upgrade the IT infrastructure within the building to bring it to industry standard levels. This item came before City Council on August 2, 2022.
To fully operate the site, various scenarios could be envisioned which have different fiscal impacts to the City. Depending on the results of negotiations with applicants, clear delineations of costs will be needed for where the City’s costs begin and end. Staff would seek to confer viable proposals to the original Library Ad-Hoc committee which established the community guidelines incorporated into the informal RFP.
The following scenarios do not specifically call out programming uses. The City would likely seek to use a portion of the site for various uses including:
Hunt Site City Programming Costs
Service Type
Responsibility
Description
Library Operations
In-House Cost (Library Staff)
A portion of the library facility for library-like services Event Rental Space
In-House Cost (P&R Coordinator)
Renting portions of the site for special event revenue generation Community Programming
In-House OR Partner
Using portions of the space for various community groups SCENARIO 1 – Cost Share on Operations With Partner
If potential proposals include a clear method for funding the operation of the site through on-site services which are revenue producing, the City will work through the planning and review process to identify if such a plan is viable. The following matrix demonstrates a 70% partner and 30% City cost-share scenario where library staffing is only two FTE’s including an Adult Services Librarian and a Senior Librarian. Staff augmentation for other site services provided by the partner based on their specific needs. (This scenario is based on a 70 - 30% partnership). The percentage split could vary depending on the proposals and review. City Council will receive a more specific financial scenario after review by staff and the Ad Hoc Committee (if authorized to review).
City Potential Operating Baseline Annual Fiscal Impact (Shared Operations) City (30%)
Partner (70%)
Salaries & Benefits (3 Librarians, 1 Sr. Librarian & 1 P&R Coordinator) 215,894.40
503,753.60
Professional Services (Security, Landscaping, Equipment Maint.) 58,410.00
136,290.00
Misc Supplies & Small Equipment Costs
270.00
630.00
Custodial Services (Day porter Service)
3,339.90
7,793.10
Telephone Costs (3 phone lines)
162.00
378.00
Electricity Costs
2,400.00
5,600.00
Sewer Service Costs
1,500.00
3,500.00
Liability Insurance Costs
9,996.00
23,324.00
Building Maintenance Allocation
9,000.00
21,000.00
Facility Capital Repair Allocation
1,662.60
3,879.40
Information Technology Costs (3 Computers & 1 Printer)
7,385.40
17,232.60
Group Insurance Cost
1,222.20
2,851.80
Total Cost Operations
311,242.50
726,232.50
Estimated Potential Facility Rental Revenues
(60,000.00)
(140,000.00)
Total Est. Annual Net Cost Share for Baseline Operation 251,242.50
586,232.50
Site Specific Programming Costs
TBD
TBD
SCENARIO 2 – Full City Site Operational Costs
There are fiscal impacts should the City choose to operate the site in any manner. The fiscal impacts range depending on the obligations through a negotiation with a partner, but such costs would need to be reallocated from other existing programming to address this need. For discussion purposes, city costs to operate a baseline facility would be in the range of $800,000 to $850,000net cost annually after estimated revenues of approximately $200,000. Also, some of the costs (specifically for the Library would be applicable under either scenario).
If City Council directs the City Manager to work on a partnership proposal, the City Manager would seek both financial and programming partners. Some potential partners have indicated that they can contribute from $30,000 to $50,000 annually for a specific number of years, but no commitments have been made as of this date.
Additionally, there are one-time costs associated with operations which include furniture for the site and one-time capital contributions for landscape and screening. The following matrix shows possible costs for year one alone:
City Potential Operating Baseline Annual Fiscal Impact (City Alone) Salaries & Benefits (3 Librarians, 1 Sr. Librarian & 1 P&R Coordinator) 719,648.00
Professional Services (Security, Landscaping, Equipment Maint.) 194,700.00
Misc. Supplies & Small Equipment Costs
900.00
Custodial Services (Day porter Service)
11,133.00
Telephone Costs (3 phone lines)
540.00
Electricity Costs
8,000.00
Sewer Service Costs
5,000.00
Liability Insurance Costs
33,320.00
Building Maintenance Allocation
30,000.00
Facility Capital Repair Allocation
5,542.00
Information Technology Costs (3 Computers & 1 Printer)
24,618.00
Group Insurance Cost
4,074.00
Total Cost Operations
1,037,475.00
Estimated Potential Facility Rental Revenues (City Alone) (200,000.00)
Total Est. Annual Net Baseline Costs
837,475.00
Site Specific Programming Costs
TBD
While the operational costs for the site are significant, staff remains confident that the value of the location, coupled with the improvements to the building should attract a viable partner which is willing to either share in the responsibility or fully accept the operating costs for the site. The location has the potential to be multi-purposed and can be creatively used while still achieving the outlined community goals from the Ad-Hoc committee.
While the informal RFP speaks to market-rate lease rates as well as a CPI based escalator as factors, these costs are negotiable based on the proposals received. The community benefit of an active site which provides services for the community broadly, as well as meeting community needs would be a value add to the City.
City Council consideration should also include the fact that the City does not have any specific budgeted appropriations for the Hunt Branch Library beyond the site improvements. As previous staff communications have indicated, the site was initially closed due to poor fiscal conditions which have not improved significantly.
From a programming perspective, a partner organization would need to fully realize the programming costs or contribute accordingly. There are opportunities for Library staff to support in achieving programming goals. The programming may be broad in nature, but would best fit the goals within the RFP based on the Ad-Hoc recommendations of:
A Creative Community Space
A Welcoming Space for The Public
A Site Which Encourages Curiosity
A Site Which Serves as a Hub for Activities, Programs, Events and Classes A Site Which Facilitates Greater Literacy Throughout the Community.
Based on the scenarios outlined, staff is seeking feedback from City Council as well as the best direction and avenue to proceed as it relates to the future utilization and function of the of the Hunt Branch Library.
Attachments:
Attachment 1 – Informal RFP
Attachment 2 – Listing of All Entities Contacted
cc: City Manager Eric J. Levitt
Hunt Branch Library Update - Page PAGE \* MERGEFORMAT 2 October 4, 2022