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Home My WebLink About09 - Establishing the Library Lecture Hall MOU City Council Ad Hoc CommitteeQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report November 28, 2023 Agenda Item No. 9 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Peter Tauscher, Senior Civil Engineer ptauscher@newportbeachca.gov, 949-644-3316 Resolution No. 2023-81: Establishing the Library Lecture Hall MOU TITLE: City Council Ad Hoc Committee FA 739-7±Tl*a At the November 14, 2023 City Council Study Session, the Newport Beach City Council reviewed and discussed the construction bids for the proposed Library Lecture Hall, the overall project cost, and whether to proceed with construction of the project. The Council voted 4-3, via a straw poll, in favor of moving the project forward. The award of the construction contract, and the third amendment to the memorandum of understanding (MOU) between the City of Newport Beach and the Newport Beach Public Library Foundation (NBPLF), will be brought to the Council for its consideration at a future meeting in January 2024. Mayor Noah Blom desires to create a City Council Ad Hoc Committee to negotiate the third amendment to the MOU with the NBPLF. If adopted, Resolution No. 2023-81 would establish a Library Lecture Hall MOU City Council Ad Hoc Committee comprised of three Council Members, appointed by the Mayor and confirmed by the entire City Council, to make recommendations to the entire City Council regarding the terms of the amended MOU. RECOMMENDATIONS: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Adopt Resolution No. 2023-81, A Resolution of the City Council of the City of Newport Beach, California, Creating an Ad Hoc Committee to Make Recommendations to the City Council on the Third Amendment to the Memorandum of Understanding with the Newport Beach Public Library Foundation Related to Funding the Library Lecture Hall; and c) Confirm the Mayor's appointments of Mayor Blom, Council Member Kleiman and Council Member Stapleton to serve on the Library Lecture Hall MOU City Council Ad Hoc Committee. 9-1 Resolution No. 2023-81: Library Lecture Hall MOU City Council Ad Hoc Committee November 28, 2023 Page 2 DISCUSSION: Mayor Noah Blom desires to create a City Council Ad Hoc Committee to negotiate the third amendment to the current MOU with the NBPLF regarding furtherfunding obligations by the NBPLF for the project. The MOU between the City and the NBPLF was originally approved on November 30, 2021, pursuant to City Council Policy A-2. It was amended on September 12, 2022, to modify the timing of the payment for the NBPLF's commitment, provide an additional naming opportunity for the audio-visual booth, refine definitions, and include other non -substantive revisions. The MOU was amended a second time on November 15, 2022, to provide an additional naming opportunity for the auditorium. If the City Council adopts the attached resolution, the Library Lecture Hall MOU City Council Ad Hoc Committee would be established. It would be comprised of three Council Members, who shall be appointed by the Mayor and confirmed by the entire City Council, to make recommendations to the entire City Council regarding the terms of the third amendment to the MOU with the NBPLF. The Ad Hoc Committee would be an advisory committee to the City Council and would expire upon making recommendations to the City Council regarding the terms of the third amendment to the MOU. The Mayor is appointing himself and Council Members Lauren Kleiman and Joe Stapleton to the Ad Hoc Committee. FISCAL IMPACT: There is no fiscal impact related to the formation of this City Council Ad Hoc Committee. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Resolution No. 2023-81 9-2 ATTACHMENT A RESOLUTION NO. 2023- 81 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, CREATING AN AD HOC COMMITTEE TO MAKE RECOMMENDATIONS TO THE CITY COUNCIL ON THE THIRD AMENDMENT TO THE MEMORANDUM OF UNDERSTANDING WITH THE NEWPORT BEACH PUBLIC LIBRARY FOUNDATION RELATED TO FUNDING THE LIBRARY LECTURE HALL WHEREAS, on January 28, 2020, the City Council adopted Resolution No. 2019-9 forming an Ad Hoc Committee to explore private funding of the Library Lecture Hall; WHEREAS, the City Council approved a Memorandum of Understanding ("MOU") between the City and the Newport Beach Public Library Foundation ("Foundation") at the November 30, 2021, City Council meeting to fundraise and equally share in the cost of completion of the Library Lecture Hall which was estimated at $12,800,000; WHEREAS, the City and Foundation entered into a First Amendment to the MOU as of September 12, 2022, that modified the timing of the payment of the Foundation's commitment, provided an additional naming opportunity of the audio-visual booth, refined definitions and other non -substantive revisions; WHEREAS, the City and Foundation entered into a Second Amendment to the MOU as of November 15, 2022, that provided an additional naming opportunity of the auditorium; WHEREAS, the total project cost has increased significantly so that the total cost to complete the Library Lecture Hall is estimated at $23,438,935; WHEREAS, the Foundation currently has $7,000,000 available to be placed in escrow prior to the City Council consideration of whether to award the construction contract; WHEREAS, the Foundation has committed to raise additional funds for a total of $11,719,500 to complete the Library Lecture Hall that will be provided to the City after the construction contract is awarded; and WHEREAS, the City Council wishes to establish an Ad Hoc Committee to make recommendations to the City Council on a Third Amendment to the MOU that increases the Foundation's financial commitment to $11,719,500 and ensures the City will receive those funds after the construction contract is awarded. Resolution No. 2023- Page 2 of 3 NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows.. Section 1: The City Council hereby creates an Ad Hoc Committee comprised, of three Council Members, who shall be appointed by the Mayor and confirmed by the entire City Council, to make recommendations to the entire City Council regarding the terms of the Third Amendment to the MOU. Section 2: The Ad Hoc Committee shall be an advisory committee that shall expire upon the making of recommendations to the entire City Council regarding the terms of the Third Amendment to the MOU. Section 3: The Ad Hoc Committee shall not be subject to the Brown Act; however, the recommendation of the Ad Hoc Committee to the City Council shall be considered at a meeting of the entire City Council noticed in accordance with California Government Code Section 54950 et seq. Section 4: If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 5: The recitals provided in this resolution are true and correct and are incorporated into the substantive portion of this resolution. Section 6: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Resolution No. 2023- Page 3 of 3 Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ADOPTED this 28th day of November, 2023. Noah Blom Mayor ATTEST: Leilani 1. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaro C. HarlY City ttorney 9-5