City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JANUARY 16, 2024 FROM: RIVERSIDE PUBLIC LIBRARY WARD: 2
SUBJECT: RESOLUTION TO AUTHORIZE THE CITY OF RIVERSIDE TO RECEIVE GRANT FUNDS FROM THE CALIFORNIA STATE LIBRARY BUDGET ACT OF 2022 (AB 178) OR THE STATE OF CALIFORNIA BUDGET ACT OF 2023 (SB 101) BUILDING FORWARD LIBRARY INFRASTRUCTURE GRANT PROGRAM ROUND 2 FOR THE NEW SPC JESUS S. DURAN EASTIDE LIBRARY, IN THE AMOUNT OF $10,000,000; RESOLUTION TO AUTHORIZE THE CITY OF RIVERSIDE TO RECEIVE GRANT FUNDS FROM THE CALIFORNIA STATE LIBRARY BUDGET ACT OF 2023 (AB 102) STATE TARGETED GRANT IN THE AMOUNT OF $4,500,000; APPROPRIATE $3,500,000 FROM GENERAL FUND INFRASTRUCTURE RESERVES – SUPPLEMENTAL APPROPRIATION ISSUE:
Adopt a Resolution to authorize the City of Riverside to receive grant funds and designate an authorized representative to enter into agreements on behalf of the Riverside Public Library for the State of California’s California State Library Budget Act of 2022 (AB 178) or the State of California Budget Act of 2023 (SB 101) Building Forward Library Infrastructure grant program Round 2 for $10,000,000; appropriate the required California State Library grant 25% City match commitment of $2,500,000 from General Fund infrastructure reserves; adopt a Resolution to authorize the City of Riverside to receive grant funds and designate an authorized representative to enter into agreements on behalf of the Riverside Public Library from the California State Library California Budget Act of 2023 (AB 102) State Targeted Grant award in the amount of $4,500,000; approve supplemental appropriations in the actual amount of the grants awarded; and appropriate an additional $1,000,000 from General Fund infrastructure reserves.
RECOMMENDATIONS:
That the City Council:
Adopt a Resolution (Attachment 1) authorizing the City Manager, or designee, to accept awarded grant funds and execute any and all agreements and award documents on behalf of the Riverside Public Library for the California State Library Budget Act of 2022 (AB 178) or the State of California Budget Act of 2023 (SB 101) Building Forward Library Infrastructure Grant Program Round 2 in the amount of $10,000,000 with a California State Library grant required 25% City match commitment of $2,500,000, including making minor and non-substantive changes to documents associated with the grant as necessary; Adopt a Resolution (Attachment 2) authorizing the City Manager, or designee, to accept awarded grant funds and execute any and all agreements and award documents on behalf of the Riverside Public Library for the California State Library Budget Act of 2023 (SB 102) for the State Targeted Grant in the amount of $4,500,000, including making minor and non-substantive changes to documents associated with the grant as necessary; With at least five affirmative votes, and upon receipt of the award, authorize the Chief Financial Officer, or designee, to record an increase in revenues in the amount of $14,500,000, or the sum of the actual grant awards, and appropriate expenditures in the same amount in the Grants and Restricted Programs Fund, SPC Jesus S. Duran Eastside Library Project revenue and expenditure accounts; With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record a supplemental appropriation in the General Fund and interfund transfer in the amount of $3,500,000 from the General Fund Infrastructure Reserves to the Capital Outlay Fund; and With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record a supplemental appropriation in the amount of $3,500,000 in the Capital Outlay Fund, SPC Jesus S. Duran Eastside Library Project account, fully offset by an interfund transfer from the General Fund.
BACKGROUND:
On March 15, 2022, the City Council approved and authorized the City of Riverside to apply on behalf of the Riverside Public Library for the California State Library Building Forward Library Infrastructure grant program for $10,051,333 with a $5,000,000 City match and $1,500,000 contingency, for total funding of $6,500,000 from the Measure Z Fund. The application covered small life safety repairs for three branch libraries, plus a much larger funding request ($10,000,000 with a $6,500,000 Measure Z match and contingency funding) for a new freestanding SPC Jesus S. Duran Eastside Library.
On September 12, 2022, the City of Riverside received notification from the California State Library that three (3) out of the four (4) projects were approved for funding. The roof repairs at Arlington and Arlanza Libraries and HVAC repairs at Orange Terrace Library were identified as urgent life safety upgrades.
The $10 million funding request for the new SPC Jesus S. Duran Eastside library was not considered a priority project under the grant Request For Proposals and was not awarded funding under the first grant round. Staff reapplied to future grant rounds for a new SPC Jesus S. Duran Eastside library, as funding opportunities were offered.
DISCUSSION:
On May 9, 2023, the City Council authorized staff to submit an application to the California State Library for funding from the Building Forward Library Infrastructure Improvements Round 2 for critical infrastructure improvements.
Staff submitted the application for Round 2 funding of the $10 million to build the facility adjacent to the Cesar Chavez Community Center at Bobby Bonds Park. In Round 2, the City’s application qualifies for a special reduced match requirement at 25% ($2.5 million) in City cash match based on the Library’s Local Operating Income Per Capital (LIPC) levels from fiscal year 2021-2022. In addition to the match required for the grant, an additional $5.6 million was requested as the City’s contribution from Measure Z unallocated reserves for construction costs not covered as part of the grant, as well as a 10% contingency of $1,818,182 that would bring the total New SPC Jesus S. Duran Eastside Library project construction budget to $20 million, which is the current construction estimate.
On June 27, 2023, the City Council amended and adopted year two of the Biennial Budget for the Fiscal Year beginning July 1, 2023, and ending June 30, 2024. The amended budget included a $2 million allocation from Measure Z unallocated reserves for architectural and design studies to get the SPC Jesus S. Duran Eastside Library project “shovel-ready” and improve the City’s chances of gaining grant funding for the construction phase of the project.
On July 18, 2023, the City of Riverside received notification from the office of Assemblymember Sabrina Cervantes that the state budget approved by the Legislature and signed by the Governor includes $4.5 million for the Eastside Library project for the City of Riverside. These funds would need to be spent on the project by January 31, 2026. Staff will follow the guidelines in the grant requirements to expend the funds by the deadline. There are no matching requirements for these funds.
On August 1, 2023, the City Council approved a First Amendment to Professional Consultant Services agreement for Architectural Design Services for the New City of Riverside SPC Jesus S. Duran Eastside Library – Phase II – Schematic Design with Cannon/Parkin, Inc., doing business as CannonDesign, to extend the term by five years to July 1, 2028 and increase compensation in the amount of $1,600,000 for a revised total contract amount of $1,694,500; and authorized a 10% contingency in the amount of $160,000 from Measure Z Capital Fund.
On October 12, 2023, staff received notice of intent from the California State Library to award a Building Forward Grant Program Round 2 funding for the new SPC. Jesus S. Duran project for the proposed amount of $10,000,000 with a required 25% City match of $2,500,000 to support the project.
Upon grant award from the California State Library, an authorizing resolution from the City Council is required prior to executing the grant agreement as well as a letter from the City’s Chief Financial Officer verifying the availability to match grant funds. Grant funds awarded must be expended by June 30, 2027.
The Building Forward Library Facilities Infrastructure Grant program disbursed more than $172 million to 34 local libraries to address critical maintenance needs, improve energy efficiency and sustainability, and expand digital and physical access in 29 cities across 18 counties.
In accordance with the City Grant Administration Policy 01.006.00, the Department Director evaluated the grant to determine the benefit to the customers of the City’s Library, long and short-term financial implications, feasibility and compatibility with existing City priorities/goals and services and determined the community and City would benefit with applying for this grant.
Based on current estimates with the architects for the project and General Services staff the total funding for the SPC Jesus S. Duran Eastside Library project is $20,000,000. With receipt of the $10 million grant and its required City match of $2.5 million, the state targeted grant budget allocation of $4.5 million, and the midcycle budget adjustment of $2 million on June 27, 2023, the total funds so far total $19,000,000. An additional $1,000,000 from General Fund infrastructure reserves is necessary to complete the project and bring total funding to $20,000,000. The following table provides the funding sources and amount for reference.
Funding Sources
Amount
State Library Round 2 Grant
$10,000,000,000
City Match 25% for State Library Round 2 Grant – General Fund Infrastructure Reserves Appropriation FY23/24 $2,500,000,000
State Targeted Grant
$4,500,000,000
FY2023-2024 Budget Adjustment City Council 6/27/23 - (Measure Z Capital Projects) $2,000,000,000
General Fund Infrastructure Reserves Appropriation FY23/24 $1,000,000,000
Total
$20,000,000,000
The General Services Director concurs with this report.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority No. 1 Arts, Culture & Recreation: Provide diverse community experiences and personal enrichment opportunities for people of all ages and Goal 1.1 - Strengthen Riverside’s portfolio of arts, culture, recreation, senior and lifelong learning programs and amenities through expanded community partnerships, shared use opportunities and fund development.
This item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – The City of Riverside has identified a priority for the needs of the New SPC Jesus S. Duran Eastside Neighborhood residents in the City. Priority is based on responses from numerous community meetings held in 2017 through 2021 by the Library through Community Ward meetings, Board of Library Trustees meetings, and Parks, Recreation and Community Commission meetings. Riverside is transparent and makes decisions based on sound policy, inclusive community engagement, involvement of City Boards & Commissions, and timely and reliable information. Activities and actions by the City serve the public interest, benefit the City’s diverse populations, and result in greater public good.
Equity – This report provides members of the community with equal access. Riverside is supportive of the City’s racial, ethnic, religious, sexual orientation, identity, geographic, and other attributes of diversity and is committed to advancing the fairness of treatment, recognition of rights, and equitable distribution of services to ensure every member of the community has equal access to share the benefits of community progress.
Fiscal Responsibility – Riverside is a prudent steward of public funds and ensures responsible management of the City’s financial resources while providing quality public services to all. The majority of this project ($14,500,000 of $20,000,000 total project) is funded by State grant dollars.
Innovation – This item will allow the City of Riverside to capitalize on new and changing funding sources in partnership with state programs to meet ongoing and changing needs of the library community. Riverside is inventive and timely in meeting the community’s changing needs and prepares for the future through collaborative partnerships and adaptive processes.
Sustainability & Resiliency – The application describes the specific actions that will be undertaken using the California State Library funds to meet the needs of the present without compromising the needs of the future and ensuring the City’s capacity to persevere, adapt and grow during good and difficult times alike.
FISCAL IMPACT:
The total fiscal impact of the action is $18,000,000, including the California State Library grant award of $10,000,000, a required City match for the California State Library grant of $2,500,000, the State Targeted Grant award of $4,500,000, and additional required project funding of $1,000,000.
With Council approval, the City match of $2,500,000 and additional $1,000,000 in project funding will come from General Fund Infrastructure Reserves. The current balance of General Fund Infrastructure Reserves available for allocation is approximately $10.6 million. If Council approves the request for a $3,500,000 allocation, the remining balance will be approximately $7.1 million.
The table below lists the supplemental appropriations and revenue entries for the above listed funding.
Fund
Project
Account
Amount
Revenue
Grants & Restricted Programs
SPC Jesus S. Duran Eastside Library
9907410-334300
$10,000,000
9907400-334300
$4,500,000
General Fund
9907420-985101
$3,500,000
Expenditure
Grants & Restricted Programs
SPC Jesus S. Duran Eastside Library
9907410-440220
$10,000,000
9907400-440220
$4,500,000
Capital Outlay
9907420-440301
$2,500,000*
9907430-462050
$1,000,000
Total
$18,000,000
*Denotes City match requirement of Grant
Prepared by: Erin Christmas, Library Director
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra Norton, City Attorney
Attachments:
Intent to Award
Draft Resolution State Building Forward Library Infrastructure grant program Round 2 - $10M Draft Resolution State Targeted Budget - $4.5M
California State Library Grant Resolution and State Targeted Resolution ● Page 4