Library & Arts Center

City of Yorba Linda

February 21, 2017

City Council Meeting

PROJECT BACKGROUND RECENT COUNCIL ACTIONS

1. At the January 19, 2016 City Council meeting, staff was directed to come back with possible uses to “maximize resident enjoyment” on the Strawberry Field/Site 13.

2. At the February 16, 2016 City Council meeting, staff was directed to bring back more information on the black box theater and the fiscal impacts of the preliminary concepts.

3. At the March 15, 2016 City Council meeting, staff was directed to explore financial opportunities,

to bring back a full financial report on funding alternatives within the context of the City’s overall financial picture, and to move forward with the architectural selection process.

4. At the April 5, 2016, City Council meeting, staff was directed to return with an updated project

budget and a more detailed financing plan once the architectural design process was underway.

5. At the September 20, 2016, City Council meeting, City Council approved the professional services

agreement with Group 4 Architecture, Research + Planning, Inc. (Group 4) and authorized an interfund loan from the Library Fund to the General Fund.

Kiosks

• At Library, Community Center and online

• 935+ participants to-date

• Goal of 1,000+ participants

Open House & Community Meeting

• 55 participants – very engaged

Commissions

• Joint Library and Parks & Recreation Commission Workshop

• Planning and Traffic Commission representation in joint workshop

• Forming a common voice and direction for project

COMMUNITY PARTICIPATION

COMMUNITY INPUT RESULTS

COMMUNITY INPUT RESULTS

LIBRARY PROGRAM

VISION FOR LIBRARY SERVICES

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1. Over 60% larger than existing Library

2. More space for improved collections

• Physical and Digital

3. Larger spaces for all generations

4. 21st Century technology throughout

5. Efficient operations

ARTS CENTER PROGRAM

VISION FOR NEW ARTS CENTER

1. Fulfill the masterplan vision

2. Complement existing facilities and programs with

arts and performance spaces

3. Fully functional and flexible black box theater

• At least 180 seats (performance)

4. Efficient and flexible

OUTDOOR SPACE PROGRAM

JOINT COMMISSION WORKSHOP RECOMMENDATIONS PROGRAM

Endorsed program outline for the 21st century library including the best of traditional services and future flexibility

Endorsed program outline for the arts center with the black box

theater supporting a rich combination of performing, creative and digital arts

LIBRARY

SEPARATE COMMUNITY FACILITIES

ARTS

CENTER

LIBRARY

CO-LOCATED COMMUNITY FACILITIES

ARTS

CENTER

SHARED PARKING +

OUTDOOR SPACE

“HEART OF COMMUNITY”

CONCEPTUAL OPTION A

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LIBRARY

ARTS CENTER

TWO LEVEL PARKING GARAGE

LAK

EVIE

W A

VEN

UE

LEMON DRIVE

N

SHARED OUTDOOR

SPACE

CONCEPTUAL OPTION A

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CONCEPTUAL OPTIONS B & C

LIBRARY

ARTS CENTER

SURFACE PARKING

LAK

EVIE

W A

VEN

UE

LEMON DRIVE

N

SHARED OUTDOOR SPACE

CONCEPTUAL OPTIONS B & C

LIBRARY

ARTS CENTER

SURFACE PARKING

LA

KE

VIE

W A

VE

NU

E

LEMON DRIVE

N

SHARED OUTDOOR SPACE

JOINT COMMISSION WORKSHOP PREFERRED CONCEPTUAL OPTION

Move forward with schematic design for the co-located Library and Arts Center

Meet parking requirements through economical surface parking

Connect best with Town Center and respect neighbors by locating

buildings along Lakeview Ave.

JOINT COMMISSION WORKSHOP RECOMMENDATIONS SITE

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BUILDING QUALITY

LOW MID-RANGE HIGH

Local References

City Hall, Current Library & Typical Elementary School

Community Center Nixon Library

Interiors School Quality Better Finishes, More Inviting

Exterior More Boxy;

Stucco; Limited Windows

More Articulation; More Accent Materials; More Windows &

Exterior Connections

Outdoor Spaces

Simple Open Spaces & Landscaping; Limited Furniture, Features &

Materials

Diverse Open Spaces, Landscaping & Materials; Varied Integrated Furniture & Interactive

Features

Energy Code Compliant Better Controls & Energy Efficiency

Highly Sustainable & Net Zero

Lighting Code Compliant

& Limited Accents Enhanced Lighting &

Controls

Diverse Lighting Controls &

Management

Flexibility Limited Operable Walls & Flexible Infrastructure

Budget Base + 10-15% + 20-50%

BUILDING QUALITY OPTIONS

BUILDING AREA OPTIONS

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LIBRARY SIZE COMPARISON

SIZE TODAY 28,000 45,000 50,000

Area Increase Undersized +61% larger than today

+79% larger than today

Collections Undersized 9-11% Increase

of Existing 11-13% Increase

of Existing

General Seating ~290 Seats 380 - 415 Seats 415 – 450 Seats

Community Rooms

~375 Seats 450-490 Seats 500- 540 Seats

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ARTS CENTER SIZE COMPARISON

SIZE 13,500 15,000

Black Box Theater 180 – 290 Seats 220 – 310 Seats

Digital Arts None 25-40 Participants

Arts 30-50 Participants

Dance 40-100 Participants

BUILDING AREA OPTIONS

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SURFACE PARKING PARKING GARAGE

Base +$8M

PARKING OPTIONS

TWO LEVEL PARKING GARAGE

LAK

EVIE

W

AV

ENU

E

LIBRARY

ARTS CENTER

SHARED OUTDOOR SPACE

SURFACE PARKING

LAK

EVIE

W

AV

ENU

E

LEMON DRIVE LEMON DRIVE

LIBRARY

ARTS CENTER

SHARED OUTDOOR

SPACE

QUALITY VS QUANTITY

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Isn’t it easy to reduce cost by 10%?

For a given size…

1. Can’t take out 10% of stair treads or make elevators 10% shorter and still make it to second floor…

2. Can’t leave out the foundation under 10% of the building…

3. Can’t take out 10% of columns and still hold up the building…

4. Can’t take out 10% of roof tiles and still keep out the rain…

5. All of the building systems that you can’t reduce make up 75-85% of the overall cost, so…

6. You would need to make a 50-75% reduction in the things you can change which is often the things you see (materials) or functional equipment.

The best way to reduce cost is to reduce overall area.

BUDGET SCENARIOS COST MODEL SUMMARY

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PROGRAM OPTIONS COST BREAKDOWNS

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• The library had $18.5 million of cash reserves on hand as of June 30, 2016

– Design and construction anticipated to be completed no earlier than fiscal year 2018/19

– $22.4 million projected to be on hand at that time

– $2.7 million or more generated from sale of current Library site

– $25.1 million in projected total available reserves

– Recommend $2.0 million remain in reserves

– $23.1 million in cash available to contribute to the project

• Per the City Council’s preliminary direction in April, staff has analyzed the costs associated with funding the balance of the project costs with debt

FUNDING SOURCES FOR THE LIBRARY

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• Cash reserves would fund a little over half of the project costs in Options B and C, and a little less than half in Option A

• Debt would be issued to fund the remainder of the costs for a period of 30 years, with an option to prepay all or a portion of the debt after 10 years

• The Library currently has an operating surplus of approximately $1.3 million per year that should continue to increase gradually

– In Option A, the General Fund would need to assist the Library in paying the debt, at least in the early years

– In Options B and C, the Library would have a small surplus remaining after making the debt payments, which would fund any increased operating costs

FUNDING SOURCES FOR THE LIBRARY

Option Library GSF Garage Library Cost Cash Funding Debt Funding Annual Debt

Payment

Option A 50,000 GSF Yes $50,200,000 $23,100,000 $27,100,000 $1,600,000

Option B 50,000 GSF No $44,100,000 $23,100,000 $21,000,000 $1,200,000

Option C 45,000 GSF No $40,600,000 $23,100,000 $17,500,000 $1,000,000

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• Based on the preliminary direction received from the Council in April, staff has identified the following funding options for the Arts Center

– Potential surplus property sales

– Use of excess General Fund operating reserves

– Debt financing

• Surplus General Fund operating reserves currently total approximately $4.7 million

– General fund budget will continue to grow

– Some additional cushion should be maintained

– A maximum of $2.5 million is recommended based on current reserve levels

– If debt financing is pursued, operating reserve funds could be utilized to decrease the portion of the project funded by debt

FUNDING SOURCES FOR THE ARTS CENTER

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• If debt financing is selected, based on Option C the General Fund impact is $523,000 -$665,000

• Debt would be issued for a period of 30 years, with an option to prepay all or a portion of the debt after 10 years

• The debt payments would likely need to be funded in the second year of the upcoming two-year budget

FUNDING SOURCES FOR THE ARTS CENTER

Option Arts Center

GSF Garage

Arts Center

Cost Cash Funding Debt Funding

Annual Debt

Payment

Option A 15,000 Yes $14,300,000 $0 $14,300,000 $821,000

$2,500,000 $11,800,000 $679,000

Option B 15,000 No $12,400,000 $0 $12,400,000 $717,000

$2,500,000 $9,900,000 $575,000

Option C 13,500 No $11,500,000 $0 $11,500,000 $665,000

$2,500,000 $9,000,000 $523,000

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• Staff is recommending that the Library be funded with a combination of cash reserves and debt – $23.1 million of cash reserves available

– $17.5 million of debt

– Annual payments at $1.0

– Library resources of up to $1.3 million per year available

• Staff is recommending that the Arts Center be funded either with the potential property sale proceeds or a combination of cash reserves and debt – $2.5 million of cash reserves available

– $9.0 million of debt

– Annual payments at $523,000

– Resources would be allocated from General Fund operating budget

PROJECT FUNDING SUMMARY

1. Direct staff to move forward with the architectural design of “Option C”, comprised of a library (approximately 45,000 GSF ) and an arts center (approximately 13,500 GSF ), with surface parking;

2. Concur with staff’s recommended approach for financing the Library component of the project, which is based on the previous direction received from the City Council on April 5, 2016;

3. Direct staff to refine the funding options for the Arts Center and report back to Council at a subsequent meeting; and

4. Direct the Finance Department to issue a request for proposals to hire a financial advisor to assist the City with the issuance of debt for the project.

STAFF RECOMMENDATIONS

NEXT STEPS 1. Schematic Design – Thru June 2017

• Site and Building Design • Materiality Concepts • Outdoor Space Definition

2. Community Outreach Round 2 • Kiosks • Community Meeting • Joint Commission Workshop • Online Survey

3. On-Going Presentations and Updates to Council and Commissions