Title
Adopt a Resolution to Authorize the Grant Application, Acceptance, and Execution of the Grant Funds from the State of California Budget Act of 2021 (SB 129), and to Authorize the City Manager to Accept and Execute All Documents Related to the Grant Funds Awarded in the Amount of $4,079,701 by the California State Library’s Building Forward Match Grant to Fund the Mulford-Marina Branch Library Improvements
Staffreport
COUNCIL PRIORITY
• Infrastructure
• Sustainability & Resiliency
• Fiscal Sustainability and Transparency
SUMMARY
The California State Library’s Building Forward match grant is a never-before-seen opportunity to fund library construction projects in the state of California. $439 million was made available by the Budget Act of 2021 (SB 129) in one-time grants to address life-safety and critical maintenance needs of public library facilities throughout California. The maximum grant amount for this competitive grant program was $10 million per public library building. The state received 275 applications. Requests exceeded $1.1 billion.
San Leandro Public Library applied for the Building Forward match grant, requesting $4,597,100 for the Mulford-Marina Branch Library Improvements project. The Library was awarded $4,079,701.
RECOMMENDATIONS
Staff recommends the City Council adopt a resolution that authorizes the submission of the application, approval to implement the awarded project, and to accept the grant award totaling $4,079,701 from Building Forward match grant and authorize the City Manager to execute all documents and appropriate the funds.
BACKGROUND
As part of the original Shoreline Development project, an upgraded replacement Mulford-Marina Library facility was part of the plan. For roughly 20 years, there were various attempts to replace this aging facility that was originally built in 1976. Unfortunately, funding for the project did not materialize. This match grant, along with the dedicated funding the City Council has allocated to not only match the grant but exceed the match to cover expenses that the grant does not, will complete this long-awaited project.
Analysis
For FY 2022-2023, the award letter (Attachment B) provides $4,079,701 in match grant funds for the Mulford-Marina Branch Library Improvements project. Match funds are subject to the same restrictions as the grant funds and may not be spent on any unallowable costs (see Attachment C), and match funds must be spent during the grant period (no later than March 31, 2026) at the same rate as grant funds.
The grant is governed by the Grant Agreement & Certification of Compliance. A draft of the Grant Agreement & Certification of Compliance has been provided (Attachment D). The City will receive the official Grant Agreement & Certification of Compliance through DocuSign after a resolution approving acceptance of the grant has been executed.
The San Leandro Public Library will receive $2,039,851 of the award following the submission and approval of all required documents including a resolution accepting the grant award. The second payment in the amount of $1,631,880 will be made after the submission and approval of the January 31, 2024 report, or sooner with proof of funding. The final payment of $407,970 will be made upon submission and approval of the final interim grant report and financial claim form.
Applicable General Plan Policies
• GOAL CSF-3 Sustain and expand a public library system that provides a destination for exploration and discovery, knowledge and information, leisure and cultural enrichment, and life-long learning opportunities for persons of all ages.
o Policy CSF-3.1 Library Expansion and Upgrades. Support the expansion and upgrading of public library facilities and services to keep pace with changes in information technology and community needs.
§ Action CSF-3.1.A: Library Modernization Continue to pursue the modernization of San Leandro's libraries to incorporate emerging technology and best practices in library design.
§ Action CSF-3.1.C: Equipment Acquisition On an ongoing basis, secure funding for technology improvements, hardware, building furnishings, and other upgrades to ensure that the City’s libraries remain cutting edge and responsive to public needs.
o Policy CSF-3.2 Library Innovation. Consider innovative approaches to generating funds or space for new or upgraded library facilities, including public-private partnerships, colocation with other public facilities, and joint development.,
§ Action CSF-3.2.A: Mulford and South Branch Replacement Continue to explore options for replacing or modernizing the Mulford Branch and South Branch libraries. Opportunities to incorporate modern new branch library facilities as part of future Mulford-Marina Branch Library Improvements mixed-use development at the Shoreline and in the Bay Fair area should be encouraged and supported.
o Policy CSF-3.4 Libraries as Neighborhood Centers. Promote programs and events that affirm the role of the City’s libraries as community and neighborhood gathering places and that reflect the City’s diverse population.
o Policy CSF-3.5 Resources for Self-Improvement. Ensure that San Leandro’s libraries and other community institutions provide a setting for the open exchange of ideas and information and provide an opportunity for residents of all backgrounds to improve their skills and knowledge.
Legal Analysis
The City Attorney has reviewed these documents and agreements and approves them as to form.
Financial Impacts
Sufficient funds are included in the CIP Budget to facilitate the match requirements of this grant. Acceptance of this grant does not impact the Fiscal Year 2022-2023 General Fund budget. State grant funding for FY 2022-2023, FY 2023-2024, and a future fiscal year, if necessary, will be awarded upfront and deposited into the 150-3607 Revenue Account and expended as follows:
FY 2022-2023
• Capital Improvement Fund, Account 210-68-100: $2,039,851
• Building Forward Grant Fund, Account 150-68-100: $2,039,851
• Total $4,079,702
FY 2023-2024
• Capital Improvement Fund, Account 210-68-100: $1,631,880
• Building Forward Grant Fund, Account 150-68-100: $1,631,880
• Total $3,263,760
Remainder of grant period no later than March 31, 2026 (in FY 2025-2026)
• Capital Improvement Fund, Account 210-68-100: $407,970
• Building Forward Grant Fund, Account 150-68-100: $407,970
• Total $815,940
Additional expenses with the project not covered by the grant
• Capital Improvement Fund, Account 210-68-100: $420,299
• Total $420,299
This Council action will not impact fund balance because there are funds available in the FY 2022-2023 CIP adopted budget. Furthermore, grant funds will be awarded up front and expended in the same year they are awarded. In future fiscal years (up to FY 2025-2026 with grant period ending March 31, 2026), the remainder of the grant totaling $407,970 is 10% of the grant total and will be held by the grantor as a reimbursement style grant and payable to the City upon completion of final reporting and claims forms.
ATTACHMENTS
Attachment A: Resolution of the City of San Leandro City Council to Authorize
the Grant Application, Acceptance, and Execution of the Grant Funds from the State of California Budget Act of 2021 (SB 129), and to Authorize the City Manager to Accept and Execute All Documents Related to the Grant Funds Awarded in the Amount of $4,079,701 by the California State Library’s Building Forward Match Grant to Fund the Mulford-Marina Branch Library Improvements.
Attachment B: Mulford-Marina Branch Award Letter
Attachment C: Building Forward Unallowable Items List
Attachment D: Mulford-Marina Branch - Grant Agreement & Certification of Compliance DRAFT
Please note: a fully executed agreement will be attached to this legislative file following approval of this action.
PREPARED BY: Brian Simons, Library Director, Library Services Department