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Home My WebLink About2011-05-24 - AGENDA REPORTS - LIBRARY ACQUISITIONS (2)NEW BUSINESS DATE: SUBJECT: DEPARTMENT Agenda Item: 18L CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval Item to be presented by: May 24, 2011 Ken Stripliri PUBLIC LIBRARY ACQUISITIONS City Manager's Office RECOMMENDED ACTION City Council adopt a Resolution approving the acquisition of library facilities, real property, personal property, and collections from the County of Los Angeles, and taking other actions related thereto. BACKGROUND At the August 24, 2010 City Council meeting, staff presented the Council with information on the establishment of an independent municipal public library system for the City of Santa Clarita. The presentation included information on the withdrawal process, service enhancements, fiscal analysis and projections, as well as the purchase of library facilities, furniture, fixtures, equipment, and other start-up costs. California Law provides that any or all of the County Library facilities within the City, and the personal property therein related, may be acquired at "fair market value." As part of the real property negotiations, the Newhall and Valencia Libraries were evaluated via independent appraisals resulting in differing valuations. A provision in the law states that if the initial appraisals have a variance and the parties cannot agree, then a third appraiser would be selected by the two initial appraisers to conduct an appraisal to determine the fair market value of the property. The Valencia Library site includes the current building and an adjacent parking lot consisting of about 71,000 +/- square feet. The Newhall Library site is located on a 13,500 +/- square -foot lot. The final independent appraisals were conducted and concluded the fair market value of properties to be $580,000 for the Newhall Library and $4,720,000 for the Valencia Library site. The Valencia Library building is currently part of the larger County facility complex. A Joint Occupancy Agreement is necessary to characterize the shared amenities and utilities at the site, including mutual ingress and egress and public parking areas. The total estimated cost to purchase these properties is $5,495,250. The purchase price of both libraries is $5,300,000. An additional $75,000 is needed for costs of escrow, title, appraisals, and due diligence activities as required for property acquisition. Furthermore, $120,250 in funding is necessary in escrow for separation costs, including relocation of utility and service connections at the Valencia Library. Appraisals were completed for the existing library collection, and furniture, fixtures, and equipment (FF&E) by the City and the County. The collection includes books, ebooks, paperbacks, magazines, audio CD's, and reference books. The existing FF&E for the three libraries includes a variety of bookcases, book racks, tables, chairs, book carts, whiteboards, trash cans, shelving, and phone system. To bridge the variances between appraisals, both parties negotiated to reach the fair market value of $2 million for the library book and materials collection and $286,000 for existing FF&E from all three libraries. The new FF&E for the Canyon Country Library is related to the expansion of the Library completed earlier this year. The value of the new FF&E for the Canyon Country Library expansion is $300,346. Per the agreement between the City and the County approved by the City Council on November 23, 2010, related to the expansion of the Canyon Country Library, the City will pay the County invoice prices for those items, as they were newly purchased for the expansion/renovation of Canyon Country Library. These acquisitions have been found to be in compliance with Government Code Section 65402 regarding General Plan consistency, and the proposed One Valley, One Vision plan. ALTERNATIVE ACTIONS Other actions as determined by the City Council. FISCAL IMPACT Funds of $8,081,596 will be loaned from the General Fund Capital Projects Reserve to the Public Library Fund (309). The fund will incur interest and be repaid in the future by Fund 309. Appropriate funds in the amount of $8,081,596 as follows: $5,300,000 for the real property purchase of the Valencia and Newhall Libraries to account 12050-5201.004; $75,000 for due diligence costs needed to complete the transaction to account 12050-5201.004; $120,250 for separation costs including relocations of utility and service connections at the Valencia Library to account 12050-5201.008; $2,000,000 for the existing library book and materials collection of the three libraries to account 12050-5111.020; $286,000 for existing FF&E at the three libraries to account 12050-5201.013; and $300,346 for new FF&E as part of the expansion of the Canyon Country Library to account 12050-5201.013. ATTACHMENTS Resolution 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE ACQUISITION OF LIBRARY FACILITIES, REAL PROPERTY, PERSONAL PROPERTY, AND COLLECTIONS FROM THE COUNTY OF LOS ANGELES, AND TAKING OTHER ACTIONS RELATED THERETO WHEREAS, following a duly noticed public hearing conducted on August 24, 2010, in accordance with the requirements of Section 19116(a) of the California Education Code, the City Council of the City of Santa Clarita adopted Resolution 10-71 to withdraw from the county free library system and assume responsibility for providing public library services, effective July 1, 2011; and WHEREAS, Section 19116(c) of the California Education Code provides that if there are one or more county library facilities within the territorial boundaries of the withdrawing city at the time the withdrawing city provides notice that the city no longer desires to be a part of the county free library system, the withdrawing city shall have the right to acquire any or all of those facilities from the county and the county shall, no later than July 1 of the base year ("base year" being the fiscal year commencing on the July 1 following the December 2 following the date of the notice given pursuant to Section 19116(a) of the California Government Code indicating that the city no longer desires to be a part of the county free library system), transfer to the withdrawing city each facility to be acquired and the personal property therein related to the provision of library services; and WHEREAS, pursuant to Section 19116(c) of the California Education Code, and by adoption of Resolution 10-71, the City Council of the City of Santa Clarita determined, and notified the Board of Supervisors of Los Angeles County, that the City of Santa Clarita intended to acquire property pursuant to the provisions of Section 19116(c) of the California Education Code, specifically: the Newhall Library facility, parking area and the personal property therein related; the Valencia Library facility, parking area and the personal property therein related; and the personal property therein related to the Canyon Country Jo Anne Darcy Library; and WHEREAS, the City of Santa Clarita and the County of Los Angeles have engaged in negotiations related to the purchase and sale of library facilities, real property, personal property and collections pursuant to the provisions of Section 19116(c) of the California Education Code and have agreed upon the terms and conditions of a Purchase and Sale Agreement related to the completion of these transactions. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. The foregoing recitals are true and correct, and the City Council hereby so finds and determines. SECTION 2. Approve and authorize the following acquisitions: the Newhall Library, Assessor's Parcel No. 2831009900, for $580,000; the Valencia Library, Assessor's Parcel No. 2861009900 (portion), for $4,720,000; the library book and materials collection of the Canyon Country, Newhall, and Valencia Libraries collection for $2,000,000; the existing Furniture, Fixtures, and Equipment of the Canyon Country, Newhall, and Valencia Libraries for $286,000, and the new Furniture, Fixtures, and Equipment related to the expansion of the Canyon Country Library for $300,346, as detailed in Attachment A attached hereto and made a part hereof. SECTION 3. Appropriate the following amounts: $5,300,000 for the real property purchase of the Valencia and Newhall Libraries to account 12050-5201.004; $2,000,000 for the existing library book and materials collection of the Canyon Country, Newhall, and Valencia ,Libraries to account 12050-5111.020; $286,000 for existing FF&E at the three libraries to account 12050-5201.013; $300,346 to account 12050-5201.013 for the new Furniture, Fixtures and Equipment related to the expansion of the Canyon Country Library; $75,000 for due diligence costs needed to complete the transaction to account 12050-5201.004; and $120,250 to account 12050-5201.008, and authorize to escrow, for separation costs including relocations of utility and service connections at the Valencia Library. SECTION 4. Approve a loan of $8,071,596 for the purchase of library facilities, real property, personal property and collections, and for related transaction costs, from the General Fund Capital Projects Reserve to the Public Library Fund (Fund 309) at an interest rate equal to the rate of return on investments of the City's cash and investment portfolio to be repaid at such time as possible by Fund 309. SECTION 5. The City Manager, Assistant City Manager, Deputy City Manager, and/or their designees are hereby authorized to take such actions as necessary to carry out, effectuate, implement, and fulfill the actions taken and authorized herein by the City Council pursuant to this resolution, including but not limited to the execution of all related documents including a Purchase and Sale Agreement (attached hereto and made a part hereof as Attachment B) and a Joint Occupancy Agreement (attached hereto and made a part hereof as Attachment C), subject to City Attorney review and approval. SECTION 6. This resolution shall take effect immediately upon adoption. PASSED, APPROVED, AND ADOPTED this day of 2011. ATTEST: MAYOR 2 L' CITY CLERK DATE: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Kevin Tonoian, Acting City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of 2011, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK 3 5 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, , City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution 11- adopted by the City Council of the City of Santa Clarita, California on , 2011, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California,. this day of 2011. City Clerk By Deputy City Clerk 4 ,^ W