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HomeMy WebLinkAbout13 - Lecture Hall Building - Amendment to MOU; and Dissolving the Newport Beach Library Lecture Hall DesignQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report January 9, 2024 Agenda Item No. 13 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, 949-644-3316, ptauscher@newportbeachca.gov TITLE: Lecture Hall Building — Approval of Third Amendment to the Memorandum of Understanding with the Newport Beach Public Library Foundation; and Adoption of Resolution No. 2024-3: Dissolving the Newport Beach Library Lecture Hall Design Committee ABSTRACT: At the November 14, 2023 City Council study session, the Council, staff and representatives of the Newport Beach Public Library Foundation discussed the recent bid opening for a new Lecture Hall (LH) building. After much discussion and review, the City Council directed staff to bring a revised Memorandum of Understanding (MOU) with the Newport Beach Public Library Foundation (NBPLF) back to the Council for its review. At the November 28, 2023 City Council Meeting, the City Council established the Library Lecture Hall MOU City Council Ad Hoc Committee, comprised of Councilmembers Noah Blom and Lauren Kleiman, to negotiate revised terms of a Third Amendment to the MOU (Third Amendment) with the NBPLF for the funding and use of the new LH building. The City Council Ad Hoc Committee met with NBPLF representatives and the revised MOU is ready for the full Council's consideration. 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) Review and Approve the Third Amendment to the Memorandum of Understanding between the City of Newport Beach and the Newport Beach Public Library Foundation for the Lecture Hall Building; c) Authorize the City Manager to execute amendments to the existing Donor Agreements that replaces the existing Memorandum of Understanding with this Third Amendment; and d) Adopt Resolution No. 2024-1, A Resolution of the City Council of the City of Newport Beach, California, Dissolving the Newport Beach Library Lecture Hall Design Committee and Repealing Resolution No. 2019-70. 13-1 Lecture Hall Building — Approval of Third Amendment to the Memorandum of Understanding with the Newport Beach Public Library Foundation and Resolution No. 2024-3: Dissolving the Newport Beach Library Lecture Hall Design Committee January 9, 2024 Page 2 DISCUSSION: The Central Library building was built in 1994 and expanded in 2013, to incorporate a second entrance connecting the Central Library to City Hall and the park. Numerous on -going programs and community events are held at the Central Library each year, including those with guest speakers and presentations. Most of the events are held in the Friend's Meeting Room. The Library Services Department reports that annual participation in programming at the Central Library increased from approximately 28,000 participants in FY 2009-10 to over 72,000 participants in FY 2018-19. At the March 12, 2019 City Council study session, the Council expressed support for the LH project and the architect team selection process. At the meeting, the library's supporters agreed to partner with the City of Newport Beach on this project. The City Council directed staff to return with a recommendation for awarding a Professional Service Agreement (PSA) for developing concept and final design plans. On July 9, 2019, the City Council adopted Resolution No. 2019-70, establishing the Library Lecture Hall Design Committee (LLHDC) and appointing then Councilmember Diane Dixon as one of the five committee members. The LLHDC formed to undertake selection of an architect, coordinate and meet with the architect and City staff on the project, and to make recommendations, as needed, to the entire City Council. With the support of the LLHDC, Robert R. Coffee Architect + Associates (RCA) was unanimously selected as the most qualified and responsive firm for this project. On November 19, 2020, RCA was awarded the design contract that includes developing conceptual designs, attending community and LLHDC meetings, and presenting concepts to the City Council. On April 30, 2021, staff and the project architect presented the project concept to The Irvine Company as stipulated in the amended Special Land Use Restrictions approved by the City Council on November 19, 2019. Following some changes and LLHDC approval, the revised concept plan was approved by The Irvine Company on August 18, 2021. The revised building concept will meet the community's use needs and reflects an architectural style supported by The Irvine Company and the LLHDC. On September 28, 2021, City staff and LLHDC members returned to a City Council study session and presented the final revised Conceptual Design, project cost estimate, and tentative funding terms for the MOU with NBPLF. After much discussion and review, the City Council provided direction on the project (with a straw vote approval on the Conceptual Design) for completion of the MOU, including raising the City's funding commitment from $4,000,000 to a 50-50 match, with a maximum City contribution of $6,500,000, and requested that the Conceptual Design and MOU come back to the City Council for consideration and formal approval. On November 30, 2021, the City Council approved the current design concept, a $13,000,000 budget, and an MOU between the City and the NBPLF related to fundraising for the LH building. 13-2 Lecture Hall Building — Approval of Third Amendment to the Memorandum of Understanding with the Newport Beach Public Library Foundation and Resolution No. 2024-3: Dissolving the Newport Beach Library Lecture Hall Design Committee January 9, 2024 Page 3 On September 12, 2022, the City Council approved Amendment No. One to the MOU between the City and the NBPLF related to fundraising for the LH Building. On November 15, 2022, the City Council approved Amendment No. Two to the MOU between the City and the NBPLF related to fundraising for the LH Building. On November 14, 2023, the Council held a study session to review and discuss the construction bids for the new 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 forward with an amendment to the MOU that increases the Foundation's commitment to $11.7 million dollars so that the project could advance. Additionally, at this meeting, then Mayor Blom recommended creating a City Council Ad Hoc Committee to negotiate the third amendment to the MOU with the NBPLF. On November 28, 2023, the City Council approved establishing the Library Lecture Hall MOU City Council Ad Hoc Committee comprised of Council Member Blom and Councilmember Kleiman. After several meetings and much discussion between the members of the City Council Ad Hoc Committee and the NBPLF, Amendment No. Three to the MOU is being provided to the full City Council for its review and consideration. Should the Council desire to move forward with constructing the LH building, staff recommends the City Council first approve Amendment No. Three of the MOU between the City and the NBPLF related to the NBPLF contribution of funds for the LH Building prior to awarding the construction contract for the LH Building. The significant changes to the existing MOU proposed in this Third Amendment include: Update to Total Project Cost: Section 1.3 is revised to reflect the new project cost of $23.5 million. City and NBPLF Financial Commitment and Timing of Payment: Sections 2.1 and 3.1 have been revised to increase the City's financial commitment and the NBPLF's financial commitment to 50% or $11.7 million. In Section 2.4, NBPLF agrees to place $7.1 million into escrow within 10 business days of approval of this Third Amendment. The remainder of NBPLF's financial commitment is due within two years or upon completion of the LH building. In the event of delay in payment of the remainder, NBPLF provides additional assurances set forth in Section 3.6 that the remainder will be repaid to the City. Controls on spending: To limit cost overruns, several provisions of the MOU were revised including Section 1.1.2 (Definition of furniture, fixtures and equipment) (FF&E) which makes clear that FF&E is limited to those fixtures included in the construction drawings, Section 1.5 (Change Orders) which now requires any party requesting an optional change order to cover its cost, and Section 2.5 which previously authorized allowed the NBPLF to request future project enhancements now only allows future project enhancements once the full NBPLF commitment of $11.7 million has been paid to the City. 13-3 Lecture Hall Building — Approval of Third Amendment to the Memorandum of Understanding with the Newport Beach Public Library Foundation and Resolution No. 2024-3: Dissolving the Newport Beach Library Lecture Hall Design Committee January 9, 2024 Page 4 • City Facility/Priority of Use: The priority of use of the LH has been modified significantly as reflected in Section 3.6. Whereas previously, the use of the LH building was governed by Board of Library Trustees Policy NBPL 15, Section 3.6 allocates 50 calendar days each year to NBPLF with the remainder of the programming scheduled by the City. • Fundraising and Future Operational Costs: Additions to the MOU were made in order to facilitate the NBPLF's fundraising, including an amendment to Section 12.3 which provides additional naming opportunities for audience seats subject to compliance with Council Policy B-17, as well as Section 3.6 which authorizes user fees based upon a fee study approved by the City Council for use of the Lecture Hall. Since the purpose and responsibilities of the LLHDC have been satisfied in that the architectural design is complete and the City Council will consider awarding a contract for construction of the Lecture Hall, staff recommends adopting Resolution No. 2024-3 dissolving the LLHDC. FISCAL IMPACT: This Third Amendment to the MOU between the City and the NBPLF if approved, provides for the lesser of either $11,743,968 or 50% of the total project cost, in private funding contributions from the NBPLF for the design and construction of the LH Project. $7.1 million must be placed into escrow within 10 business days of approval of this amendment. The remaining $4.6 million, as it is collected as specified in the MOU, will be deposited into the City's General Fund as a reimbursement to City funds advanced to pay for the design and construction of the LH. ENVIRONMENTAL REVIEW: 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. 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). ATTACHMENTS: Attachment A — Location Map Attachment B — Third Amendment to the Memorandum of Understanding Attachment C — Resolution No. 2024-3 13-4 Attachment A LEGEND = PROPOSED LECTI )EL MAR ZA CITY OF NEWPORT BEACH CENTRAL LIBRARY LECTURE HALL LOCATION MAP CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT C-7444-2 13-5 ATTACHMENT B THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NEWPORT BEACH AND THE NEWPORT BEACH PUBLIC LIBRARY FOUNDATION RELATED TO FUNDRAISING FOR THE LECTURE HALL PROJECT This Third Amendment to Memorandum of Understanding ("Third Amendment") is entered into as of the day of , 2024 ("Effective Date") by and between the City of Newport Beach, a California municipal corporation and charter city ("City") and the Newport Beach Public Library Foundation, a California nonprofit public benefit corporation ("Foundation"). City and Foundation are at times individually referred to herein as "Party" and collectively as "Parties." RECITALS A. The Foundation and City are Parties to that certain Memorandum of Understanding entered into as of November 30, 2021, which was amended by First Amendment to Memorandum of Understanding entered into as of September 12, 2022, subsequently amended by Second Amendment to Memorandum of Understanding entered into as of November 15, 2022, and further amended by this Third Amendment to Memorandum of Understanding (collectively referred to herein as, the "MOU" or "Agreement"). B. As contemplated in Section 2.4 of the MOU, the Project was competitively bid in September 2023 based upon construction drawings prepared by RCA (the "Construction Drawings") and the Estimated Project Costs based upon the lowest responsible bid and other expenses already incurred has nearly doubled. C. To complete the Project, the City's Commitment and Foundation's Commitment must increase from Six Million Five Hundred Thousand Dollars and 00/100 ($6,500,000.00) to Eleven Million Seven Hundred Forty -Three Thousand Nine Hundred Sixty -Eight Dollars and 00/100 ($11,743,968.00) respectively. D. The City has expended approximately Seven Hundred Fifty -Eight Thousand Seven Hundred Dollars and 00/100 ($758,700.00) on design, environmental and permitting for the Project. Additionally, to complete the Project, the City must enter a construction contract without the Foundation's Commitment fully secured. THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 1 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION 13-6 E. As a result, the Foundation and City acknowledge and agree to amend the terms of the MOU to complete the Project, as provided herein. F. The Parties desire to reconfirm that the Library Lecture Hall will be a City owned facility and that it will host a variety of users including the Foundation programming consistent with the Foundation's mission statement and therefore it will hereinafter be referred to as the Lecture Hall ("Lecture Hall"). The Foundation further confirms that the priority of users of the Lecture Hall, other than uses by the Foundation, is not a matter over which the Foundation will have any control other than the Foundation's use of the Lecture Hall as provided in Section 3.6. G. The City and Foundation have conferred as contemplated by the MOU and have concluded that the Low Bid should be accepted and the MOU should be amended to (i) increase the Foundation Commitment and City Commitment in order to fully fund the Project and (ii) reflect the willingness of the City to award the Construction Contract and proceed with construction of the Project subject to the Foundation raising additional funds until the Foundation has met its revised Foundation Commitment and other amendments provided herein. NOW, THEREFORE, for and in consideration of the mutual covenants and promises set forth herein, the City and the Foundation do hereby agree as follows: 1. Section 1.1.2 shall be amended in its entirety to read as follows: "2. Furniture, fixtures and equipment which is limited to chairs, a podium, audio-visual equipment, and physical items identified in the Construction Drawings ("FF&E")." 2. Section 1.3 of the MOU shall be amended in its entirety to read as follows: 1.3 Proiect Costs. The Parties agree that the total Project costs based upon the Conceptual Design prepared by RCA and approved by the City Council is estimated to be Twenty -Three Million Four Hundred Eighty -Seven Thousand Nine Hundred Thirty -Five Dollars and 00/100 ($23,487,935.00) (the "Estimated Project Cost"). The Estimated Project Cost includes all design related costs, including but not limited to the costs of Phases I -IV, and all anticipated costs of obtaining permits, construction of the Project based upon the lowest responsible bid of Nineteen Million Sixty -Eight Thousand Dollars and 00/100 ($19,068,000.00) (the "Low Bid") received from AMG & Associates ("Low Bidder"), management of construction, inspections, other soft costs, FF&E and a contingency of One Million Nine Hundred Six Thousand THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 2 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION 13-7 Eight Hundred Dollars and 00/100 ($1,906,800.00) representing ten percent (10%) of the Low Bid for construction of the Project." 3. Section 1.4 is hereby deleted in its entirety. 4. Section 1.5 shall be amended in its entirety to read as follows: 1.5 Change Orders. The City may unilaterally approve change orders related to construction issues at the Project that occur during construction and that the City deems necessary (a "Necessary Change Order"). If the City or the Foundation desire change orders to the design of the Lecture Hall or FF&E beyond what is identified in the Construction Drawings as of the effective date of this Third Amendment and which would create a cost in excess of the Estimated Project Cost, the Party requesting the Change Order shall notify the non -requesting Party of such desired change and shall provide all additional funds necessary to implement the Change Order over and above the requesting Party's financial commitment set forth in Sections 2.1 and 3.1 respectively within seven (7) calendar days." 5. Section 2.1 shall be amended in its entirety to read as follows: "2.1 The Foundation Commitment. The Foundation expressly agrees that it shall collect donations in the amount of fifty percent (50%) of the Estimated Project Cost or Eleven Million Seven Hundred Forty -Three Thousand Nine Hundred Sixty -Eight Dollars and 00/100 ($11,743,968.00), whichever is less (the "Foundation Commitment") for the Project. The Foundation shall place Seven Million One Hundred Thousand Dollars and 00/100 ($7,100,000.00) in escrow on the date set forth in Section 2.4 below. The remainder of the Foundation Commitment in the amount of Four Million Six Hundred Forty -Three Thousand Nine Hundred Sixty -Eight Dollars and 00/100 ($4,643,968.00) ("Remainder of Foundation Commitment") shall be paid to the City within two (2) years of Effective Date of this Third Amendment or prior to the City Council adoption of the notice of completion of construction of the Lecture Hall in accordance with California Civil Code Section 9200 et seq. ("Remainder of Foundation Commitment Final Payment"), whichever occurs later. The Foundation agrees that it shall take appropriate legal action to collect all outstanding pledges." 6. Section 2.4 shall be amended in its entirety to read as follows: "2.4 Bidding; Payment of Donations. The City completed construction drawings, obtained required permits, placed the Project out to bid as a public works project, notified the Foundation of the date, time and place that the bids received for the Project were opened by the City, invited representatives of the Foundation to attend the bid opening, notified the Foundation of the City Council study session held on THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 3 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION 13-8 November 14, 2023, and the January 9, 2023, meeting wherein the City Council will consider award of the construction contract to the lowest responsible bidder. The Foundation shall place Seven Million One Hundred Thousand Dollars and 00/100 ($7,100,000.00) ("Escrowed Funds") the Foundation Commitment into an escrow account at First American Title Company in Santa Ana, CA or other escrow company agreed to between the Parties ("Escrow Holder") not later than Friday, January 19, 2024. At such time as the City (i) thereafter demonstrates to the Foundation that the City has appropriated the City's Commitment set forth in Section 3.1 and (ii) has awarded the contract, finalized negotiations with the contractor and entered into a construction agreement for the Project wherein the City is legally bound to pay for and construct the Project (the "Release of Funds Conditions"), the Escrowed Funds shall be disbursed to the City. Upon the occurrence of the Release of Funds Conditions, Foundation agrees to promptly execute instructions if requested by Escrow Holder as a condition to the disbursement of the Escrowed Funds to the City. Notwithstanding the foregoing, in the event of the termination or expiration of this MOU prior to the City entering into a construction contract for construction of the Project, the Escrowed Funds shall be returned to Foundation. Upon such termination or expiration of this MOU, the City agrees to promptly execute instructions if requested by Escrow Holder as a condition to the disbursement of the Escrowed Funds to the Foundation. Escrow fees of Escrow Holder shall be paid out of the Escrowed Funds." 7. Section 2.5 shall be amended in its entirety to read as follows: "2.5 Future Project Enhancements. In the event the Foundation believes that certain enhancements or upgrades of the Lecture Hall or Bamboo Courtyard would be worthy of financial support of the Foundation following the Foundation's full payment of the entire Foundation Commitment, the City will work with the Foundation to implement those enhancements or upgrades desired by the Foundation that are reasonably acceptable to the City provided the Foundation pays the entire cost of any project enhancement." 8. Section 3.1 shall be amended in its entirety to read as follows: "3.1 City's Commitment. The City has earmarked, and through this MOU commits to pay up to a maximum of fifty percent (50%) of the Estimated Project Cost or Eleven Million Seven Hundred Forty -Three Thousand Nine Hundred Sixty -Eight Dollars and 00/100 ($11,743,968.00) whichever is less (the "City's Commitment") for the Project." 9. Section 3.6 shall be amended in its entirety to read as follows: THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 4 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION 13-9 "3.6 Use of Lecture Hall. The Lecture Hall shall be owned and controlled by the City. Notwithstanding the foregoing, the Foundation shall have a right of first use of the Lecture Hall not to exceed fifty (50) days each fiscal year which may be exercised by providing the City with not less than six (6) months prior written notice bi-annually on July 1 and January 1. Any additional days requested by the Foundation will be evaluated by the City in coordination with all other requested uses and events. In the event of default in paying the Remainder of Foundation Commitment Final Payment by the deadline set forth in Section 2.1, the right of first use provided herein, excluding any Foundation events already booked, shall be suspended until the Remainder of Final Payment of Foundation Commitment is paid in full ("Cure Period"). During the Cure Period, the portion of the Foundation's annual endowment fund allocated to the Newport Beach Public Library, shall be paid to the City towards the Remainder of Final Payment of Foundation Commitment until the Foundation Commitment is paid in full. The use of the Lecture Hall shall be subject to user fees in accordance with a cost study to be prepared periodically on behalf of the City and approved by the City Council." 10. Section 4 shall be amended in its entirety to read as follows: "Subject to the provisions of Section 11 below, the term of this MOU shall commence upon mutual execution of this MOU and shall continue until the sooner to occur of (i) completion of the Project and full payment of the Foundation Commitment to the City or (ii) five (5) years from the date of this agreement (the "Term"). Provided, however, once construction of the Project has commenced and for so long as it is being continuously pursued, this MOU shall remain in effect until construction is completed and the Foundation Commitment is paid to the City. If at the end of the Term, construction of the Project has not commenced, this MOU shall terminate regardless of any design work already completed or any funds expended by either party. However, the Parties may extend the term of this MOU by mutual written consent and an amendment to this MOU. The provisions of Section 2.5, Section 3.6, Section 11.5 and Section 12 of this MOU shall survive the expiration or earlier termination of this MOU." 11. Section 12.3 shall be amended in its entirety to read as follows: "Other Naming Opportunities. In addition to the naming rights of the Named Donor, the City agrees that the Foundation may offer naming rights to the Bamboo Courtyard, the lobby, the green room, audience seats, and a donor wall subject to prior review and approval of the City Council and execution of a Named Donor Agreement." THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 5 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION 13-10 12. Section 13.1 shall be amended in its entirety to read as follows: "13.1 Compliance With all Laws. Foundation shall at its own cost and expense ensure that the Foundation entering into the MOU and any amendments comply with its obligations under all applicable statutes including, but not limited to, California Business and Professions Code Section 17510.8 or other statutes related to charitable contributions, ordinances, regulations and requirements of all federal, state, county or municipal entities including, but not limited to any interpretations or approvals by the California Attorney General Charitable Trust Division related to its obligations under this MOU." 13. Except as amended by this Third Amendment, the MOU shall remain in full force and effect. 14. This Third Amendment may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute the same instrument. [SIGNATURES ON NEXT PAGE] THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - 6 NEWPORT BEACH PUBLIC LIBRARY FOUNDATION 13-11 IN WITNESS WHEREOF, the parties have caused this Amendment No. Three to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 1 a''L By: 27:,I� Aaro C. Harp as City Attorney 00�a ATTEST: Date: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: Bv: Will O'Neill Mayor FOUNDATION: Newport Beach Public Library Foundation, a California Nonprofit Corporation Date: By: Jerold D Kappel Chief Executive Officer Date: By: Marilyn Krahe Secretary [END OF SIGNATURES] THIRD AMENDMENT TO MEMORANDUM OF UNDERSTANDING - NEWPORT BEACH PUBLIC LIBRARY FOUNDATION 7 13-12 ATTACHMENT C RESOLUTION NO. 2024-3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, DISSOLVING THE NEWPORT BEACH LIBRARY LECTURE HALL DESIGN COMMITTEE AND REPEALING RESOLUTION NO. 2019- 70 WHEREAS, the Council of the City of Newport Beach adopted Resolution No. 2019-70 establishing the Library Lecture Hall Design Committee ("Committee") for the Library Lecture Hall Project ("Lecture Hall"); WHEREAS, the purpose and responsibilities of the Committee include providing a recommendation to the City Council for the selection of an architect, coordinating and meeting with the architect and City staff on the Lecture Hall, and making recommendations, as needed, to the entire City Council in regards to the Lecture Hall; and WHEREAS, the purpose and responsibilities of the Committee have been satisfied in that the architectural design is complete and the City Council will consider awarding a contract for construction of the Lecture Hall. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The Committee is hereby dissolved and all resolutions, including Resolution No. 2019-70, and actions establishing the Committee or extending the terms thereof, if any, are hereby repealed. Section 2: The recitals provided in this resolution are true and correct and are incorporated into the substantive portion of this resolution. Section 3: 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. 13-13 Resolution No. 2024- Page 2 of 2 Section 4: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act (" CEQX) 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. Section 5: 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 91h day of January, 2024. Will O'Neill Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aa n C. Harp City Attorney 13-14