PREPARED BY: MATT RODRIGUEZ DATE OF SPECIAL MEETING: 06/17/2024
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDED SUBLEASE SUPPLEMENT NO. 7 BY AND BETWEEN THE CITY OF SAN PABLO AND CONTRA COSTA COUNTY FOR A TOTAL OF 52 HOURS PER WEEK OF LIBRARY SERVICES RENDERED AT THE SAN PABLO LIBRARY FOR FISCAL YEAR 2024-25 AT A COST OF $122,250, INCLUDING NEW 5-YEAR SPECIALIZED LEASED EQUIPMENT COST ALLOCATION OF $20,549, FOR A COMBINED TOTAL COST OF $142,799
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
County Library Services is an existing contractual agreement between the City and Contra Costa Library Services since 2017, and is not a specific adopted policy item required to be enumerated in the adopted FY 2023-25 City Council Priority Workplan, effective May 1, 2023.
CEQA Compliance Statement
The execution of Sublease Supplement No. 7 is not subject to environmental review under the California Environmental Quality Act because it would not result in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore are not considered a “project” subject to CEQA review. (Pub. Resources Code, § 21065; 14 Cal. Code Regs.§ 15378.).
BACKGROUND
The City of San Pablo (“City”) has long partnered with County of Contra Costa (“County”) to provide its citizens with a local branch of the County library system. Generally, the City has been responsible for securing space for a local library branch and paying rent, maintenance, and operational costs related to the space, while the County provides all library services at that location. Increasingly, the County has required cities to pay for services beyond a baseline of hours of 35 hours per week established since 2017 in effect.
Operation of the San Pablo Library (“Library”) is governed under a Library Sublease and Service Agreement (“Sublease”) with the County originally executed on May 24, 2017. Under the Sublease, the County Librarian provides a Sublease Supplement (“Supplement”) to the City by March 31 of each year which sets forth (i) the number of weekly baseline hours of library service the County will provide in the upcoming fiscal year; (ii) the number of “extra or supplemental hours” of library service the City has requested the County to provide for the upcoming fiscal year; (iii) the resulting number of actual hours during which library services will be conducted at the Library for the upcoming fiscal year; and (iv) the cost of the extra hours to the City.
FY 2023-24 County Library Services Agreement
On June 5, 2023, per Resolution 2023-081, the City Council authorized the City Manager to execute Sublease Supplement No. 6 which enabled the County to increase base hours per week to 40 base hours for the FY 2023-24 period, with additional supplemental hours (i.e. OPTION B - 12 extra supplemental hours per week at the City’s expense) for a total cost of $124,525 for a total service level of 52 hours per week for FY 2023-24 through June 30, 2024. Since the COVID-19 pandemic, County Library Services continues to provide and sustain 40 base hours per week to the San Pablo Library with a continuance of this service level through the FY 2024-25 period.
FY 2024-25 County Library Services Agreement (Proposed)
For the FY 2024-25 period, County Library Services provided a revised cost estimate to the City on March 29, 2024 totaling $122,250 which requires the City Council to authorize the City Manager to execute the +12 extra supplemental hours per week under OPTION B which increases total service hours to 52 hours per week. A nearly (-2%) cost decrease ($2,275) from $124,525 in FY 2023-24 is being proposed for the FY 2024-25 period at $122,250, effective July 1, 2024.
Therefore, should the City Council authorize OPTION B in the attachment for a total service level hours of 52 hours per week for FY 2024-25, the proposed operating hours of the San Pablo Library remain the same service level provided to the San Pablo community for the upcoming FY 2024-25 period, effective July 1, 2024, as follows:
Mondays: 10:00 a.m. - 8:00 p.m. Fridays: 9:00 a.m. - 5:00 p.m.
Tuesdays: 10:00 a.m. - 8:00 p.m. Saturdays: 9:00 a.m. - 5:00 p.m.
Wednesdays: 10:00 a.m. - 6:00 p.m. Sundays: CLOSED
Thursdays: 10:00 a.m. - 6:00 p.m.
Total FY 2024-25 Weekly County Library Service Level Hours: 52 hours/week
New 5-year Specialized Leased Equipment Cost Allocation
For the FY 2024-25 period, all local cities who contract with County Library Services have agreed through recent Contra Costa Public Manager’s Association deliberations during Spring 2024 to integrate new, leased self-check equipment machines to be acquired for operational use at certain Contra Costa Libraries for the next 5-year period from FY 2024-25 through FY 2028-29. San Pablo Library costs associated with four (4) leased self-check equipment and one-time pedestal costs are proposed at $20,549 to integrate this new, specialized equipment during FY 2024-25 period.
Note: The new, leased self-check equipment is intended to be cost efficient and improve library patron satisfaction. Because the equipment will be leased, the acquisition costs will be spread over the five-year lease term. For equipment leased in FY 2024-25, County Library Services will invoice the City 25% of the estimated annual cost in each of the first three (3) fiscal quarters with a “true-up” amount for the fourth quarter. The fourth quarter invoice will capture any variance between the estimated and actual cost of the lease in FY 2024-25. In subsequent fiscal years during the lease term, the Library will invoice the City 25% of the actual lease cost in each of the four (4) fiscal quarters. The cost of any equipment that is purchased for the San Pablo Library, and the cost of any equipment maintenance agreement, will be payable by the City in four (4) installments the fiscal year in which they are acquired. The estimated cost associated with self-check equipment, related equipment, and maintenance contracts, as applicable, at the San Pablo Library for each year of the self-check lease term is shown in Attachment B (See Attachment).
City Manager Recommendation
The City Manager requests the City Council affirm by majority vote via Resolution, a request for contract service modification to the County’s proposed Supplement No. 7 for FY 2024-25, and authorize the 52 total weekly service hours per week for County Library Services which includes the 40 base hours provided by the County plus the +12 extra supplemental hours at City expense under OPTION B at the San Pablo Library, effective July 1, 2024. Additionally, the City Manager recommends the City Council authorize the City Manager to execute the new 5-year Specialized Leased Equipment Cost Allocation for FY 2024-25 to integrate the new, self-check equipment at San Pablo Library, effective July 1, 2024.
The City Council is thereby sustaining the same operational service level to the community provided by County Library Services, and continuing for the FY 2024-25 period which is consistent with pre-COVID-19 pandemic service levels (See Attachment)
If approved by majority vote via Resolution this evening, the City Council would direct the City Manager (and City Attorney if required) to proceed with a formal contract modification, with permissive language authority (if warranted) to amend Supplement No. 7 and Attachment B (New, Leased Specialized Equipment Costs) appropriately with County Librarian staff before the July 1, 2024 effective date (See Attachment).
FISCAL IMPACT
For FY 2024-25, based on the new County Library service level, the proposed Sublease Supplement No. 7 will obligate the City to pay the County a total of $122,250 which includes the 52 weekly service hours, and includes the +12 extra hours of library services at City expense for the upcoming FY 2024-25 period, effective July 1, 2024, with the City invoiced quarterly. Additionally, the City would also be required to cover the New 5-year Specialized Leased Equipment Cost Allocation of $20,549 for the San Pablo Library for FY 2024-25, for a combined total cost of $142,779.
All operational costs associated with FY 2024-25 County Library Services provided at the San Pablo Library are budgeted under the Adopted Two-Year Biennial GF Operating Budget under the City Council Departmental Budget for FY 2024-25 and FY 2025-26 periods as approved on May 20, 2024 via Resolution 2024-064.
ATTACHMENTS:
Att A - Resolution
Att B - Correspondence from Contra Costa County Library Service dated 03/29/24 re: FY 2024-25 Proposed Costs for County Library Services
Att C - Proposed Sublease Supplement No. 7 and Attachment B (Specialized Lease Equipment Costs) for FY 2024-25, effective July 1, 2024
Att D - Annual County Library Report - 2023