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APPROVE RESOLUTION ACCEPTING GRANT FUNDING FROM THE STATE OF CALIFORNIA BUDGET ACT OF 2021 FOR THE CESAR CHAVEZ CENTRAL LIBRARY REMODEL PROJECT NO. CL22001 IN THE AMOUNT OF $10,000,000
recommended action
RECOMMENDATION
Staff recommends that City Council adopt a resolution to:
1) Authorize the City Manager to accept the State of California Budget Act of 2021 (SB129) - California State Library Building Forward Infrastructure Program Grant for the Cesar Chavez Main Library Remodel Project CL22001 in the amount of $10,000,000 and make all necessary appropriations in compliance with and for the purposes of the grant application; and
2) Authorize the City Manager to execute the Grant Agreement, all grant award document filings, agreements, and amendments, as required by the California State Library, and accept applicable terms and conditions; and
3) Authorize the City Manager or designee to submit any required documents, funding requests, and reports required to obtain grant funding; and
4) Authorize the City Manager or designee to take appropriate and necessary actions to comply with any laws and regulations including, but not limited to, the California Environmental Quality Act (CEQA), legal requirements for building codes, health and safety codes, and the California Labor Code, disabled access laws, and that prior to commencement of the project, all applicable permits will have been obtained; and,
It is also recommended that the City Council authorize the City Manager, or designee, to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The California State Budget Act of 2021 (SB129, Chapter 69, Statutes of 2021) allocated $439 million in one-time funds to the California State Library’s Building Forward Library Infrastructure (BFLI) Program. The program helps address life-safety building issues and prioritizes library facilities in high-poverty areas such as Stockton. The City of Stockton 2021-2026 Capital Improvement Plan (“CIP”) includes the Cesar Chavez Library Remodel (“Project)” CL22001 with a budget of $8,080,000. The CIP budget is insufficient for the current critical needs and deferred maintenance of the Chavez Library.
On March 22, 2022, City Council approved motion 2022-03-22-1209, ratifying the City Manager’s submission of the grant application to the California State Library. The BFLI program had a short application period of fewer than 60 days and closed on March 21, 2022. On September 12, 2022, the Library was notified that the funding request of $10,000,000 was approved (Attachment A - Award Letter & Unallowed Costs). Preliminary grant documents were provided on November 4, 2022. The Grant requires a $5,000,000 match in funds. $4,450,000 is in the Strong Communities Funding Plan and is approved in the current fiscal year budget. The remainder of the funds will be allocated and appropriated from the Measure M - Strong Communities Fund in the FY2023-24 Annual Budget process.
Staff recommends accepting the grant in the amount of $10,000,000; executing all grant agreements and amendments, related grant documents, reports, and filings; accepting associated terms and conditions; and appropriating funds to the Cesar Chavez Library Remodel (“Project)” CL22001. The Project design is anticipated to start in the spring of 2023, and construction will be completed by March 2026.
DISCUSSION
Background
The Stockton-San Joaquin County Public Library System (“Library”) provides free library services at 16 library branches to 781,600 residents in San Joaquin County. The Cesar Chavez Central Library (“Chavez Library”) is a 70,000-square-foot facility first dedicated in 1964 and partially remodeled in 2004. Chavez Library serves as the Central Library, or “hub” of the library system, housing a central library book collection, special historical collections, the Community Services administration department, technical services, and delivery staff who support library operations.
Years of deferred maintenance have affected the practical use of the facility. The building is outdated, and modifications have been hindered by the cost of removing hazardous materials such as asbestos in the floor tiles, spray-on fireproofing, pipe fittings, and roofing. The current layout of the building, deteriorating interior, and outdated systems need updating for modern library patron needs.
In 2016 the Measure M- Strong Communities ballot initiative was passed, and a long-range expenditure plan was created. The Expenditure Plan has earmarked $8,080,000 for the Cesar Chavez Library Remodel Project No CL22001, which is scheduled to begin design development in FY 2022-23. $4,450,000 is in the Strong Communities Funding Plan and is approved in the current fiscal year budget. The remainder of the funds will be allocated and appropriated from the Measure M - Strong Communities Fund in the FY 2023-24 Annual Budget process. Based on feedback from Public Works, the allotted Measure M - Strong Communities funding is insufficient for the critical needs and deferred maintenance of the Chavez Library.
In the fall of 2021, the State Library announced the FY 2021-22 BFLI Grant funded by the State of California and administered by the California State Library. The grant intends to expand library services and program opportunities in underserved communities across California. Guidelines allow a library system of our size to apply for an award not to exceed $10,000,000. The BFLI application period opened on February 4, 2022, and closed on March 21, 2022. Because the application period was short, the City Manager authorized the submission of a grant application on March 21, 2022, followed by a staff report to City Council on March 22, 2022. On March 22, 2022, City Council approved motion 2022-03-22-1209 to ratify the City Manager’s approval of the grant application.
Staff submitted a request for $10,000,000 based on the overall estimated costs of the Project. The BFLI Grant requires a dollar-for-dollar match for the Project; however, the required match is predicated on the Library’s Local Income Per Capita (“LIPC”) level, derived from the California Public Library’s Survey Data. Our Library’s LIPC is considered a Level 2, which reduced the required match by 50%, or $5,000,000.
The California State Library received 275 applications from 86 jurisdictions for requests exceeding $551 million, well above the $439 million allocated to the program. The State Library requested additional information to assist in evaluations, and the City submitted the responsive report in July 2022.
Present Situation
The Library was notified on September 12, 2022, that the grant application was accepted for funding in the amount of $10,000,000 with a reduced match of $5,000,000. The grant funding is restricted to health and safety activities and expenses. It will help fund improvement and modifications to seismic bracing, interior floors, ceilings and doors, HVAC system, electrical distribution, lighting, fire and security systems, life-safety and code compliance, ADA compliance, and hazmat remediation. The grant will also fund design, environmental, permitting, and other administrative costs. A summary of grant activities is provided (Attachment B - Budget).
This grant supports existing CIP Project CL2201. The Request For Proposals CL2201 for design services for the Chavez Library closed on December 16, 2021. The final design award will return to City Council for approval in early Spring, when the RFP scope, now expanded by the proposed grant award, is finalized.
The Library received an award package in November 2022. The package includes a project budget, a final project implementation plan, a draft Grant Agreement and Certificate of Compliance, a letter certifying the availability of match funds, and a fiscal claim. The project design work is anticipated to start in the Spring of 2023. Construction must be completed by March 2026. The Project details and timeline are incorporated into The Implementation Plan (Attachment C - Timeline). To obtain funding, the City Council must pass a resolution to authorize the award, accept the funding, and authorize the City Manager to execute the final Grant Agreement and all related documents.
Of the $8,080,000 in the current CIP, $5,000,000 will be set aside to match funds for specific expenditures identified in the Project Budget. There is currently $4,450,000 available in the Capital Improvement Plan Project CL22001, and the remainder will be allocated and appropriated in the FY2023-24 Annual Budget process. The remaining $3,080,000 in the CIP will be held for contingency, building furnishings and equipment, and other essential construction costs not deemed eligible for grant funding use. The original project budget was established in 2019, and construction costs have escalated, impacting the budget scope. Staff will return to City Council to discuss the additional capital needs of this project. The staff report contains a draft agreement with related terms and conditions. The final agreement will be delivered after the Implementation Plan, Budget, and the City Council-approved resolution are uploaded into the grant portal and can be incorporated into the final agreement.
Staff recommends approval of Grant Agreement BF-1-21-061 for $10,000,000 which will be substantially similar to the draft Agreement (Exhibit 1 to the Proposed Resolution).
Financial Summary
The City of Stockton Public Works Department will coordinate the CIP. Library staff will work with Public Works staff to coordinate grant award requirements. The City of Stockton Measure M - Strong Communities Transaction Tax Project currently has $4,450,000 available, and the remainder will be requested in the FY 2023-24 Annual Budget process. Grant revenue and expenditures will require an increase to appropriate $10,000,000.00 in grant revenues and expenditures for the Chavez Library Remodel Project No. CL22001 to the FY 2022-23 Budget.
Attachment A - Award Letter & Unallowed Costs
Attachment B - Budget
Attachment C - Timeline