There is no fiscal impact to considering proposals for the sale of County-owned property at 1750 Oak Park Boulevard in Pleasant Hill, other than the cost of staff time.
Keeping the existing Pleasant Hill Library open through June 2022 would require substantial work to be done on the building’s heating, ventilation and cooling (HVAC) system. The estimated cost of keeping the HVAC system operational through June 2022 is over $350,000. In addition, keeping the building open would require critical electrical maintenance to be performed at an estimated cost of $718,000. The estimated cost to repair the roof if it fails before June 2022 is $1.2 million.
The County owns two parcels on Oak Park Boulevard in Pleasant Hill. The property located at 1750 Oak Park Boulevard consists of approximately five acres and is the site of the existing Pleasant Hill Library. The property located at 1700 Oak Park Boulevard is undeveloped and consists of approximately ten acres, eight of which are owned by the County and two of which are owned by the Mount Diablo Unified School District (the School District). The property located at 1750 Oak Park Boulevard is the “5-Acre Property” and the property located at 1700 Oak Park Boulevard is the “10-Acre Property.”
In December 2006, the County and the School District entered into a joint exercise of powers agreement for the purpose of selling the 10-Acre Property and sharing the proceeds of the sale. The County was successful in identifying a potential buyer and, in 2007, entered into an option agreement under which a developer of single-family homes had the right to purchase the property for $22 million following a due diligence period. After the real estate market collapsed in 2008, the potential buyer elected not to exercise the option and the property remained unsold.
Existing Real Property Agreements
On July 24, 2018, the Board of Supervisors took three actions affecting the 5-Acre Property and the 10-Acre Property. First, the Board authorized the execution of a Memorandum of Understanding (MOU) between the County, the City of Pleasant Hill (the City), and the Pleasant Hill Recreation and Park District (the Park District) under which the three agencies would work together to maximize the public benefit of both sites. The MOU gave the agencies the opportunity to explore the following potential uses: The City’s development of a portion of the 10-Acre Property as the site of a new City-owned library; the Park District’s development of a portion of the 10-Acre Property as the site of a new recreational area; and the County’s sale of the 5-Acre Property to a builder for residential construction. These three potential projects, now known as the “Oak Park Properties Specific Plan,” are discussed under the heading “California Environmental Quality Act (CEQA)” below.
Second, the Board authorized the execution of an Amended and Restated Joint Exercise of Powers Agreement between the County and the School District. Under the amended agreement, the County and the School District would share the proceeds of the sale of the 5-Acre Property, rather than the 10-Acre Property. The County took this step to ensure that the School District would receive maximum value for its contribution of two acres to the 10-Acre Property.
Third, the Board authorized the filing of an application with the City of Pleasant Hill for entitlements for the construction of approximately 35 single-family homes on the 5-Acre Property. By obtaining entitlements before selling the property, the County will maximize the value of the property for the benefit of the County and the School District and enable the County to ensure that the resulting development is compatible with the nearby civic projects.
Results of Cooperative Efforts Under the MOU
Since entering the MOU, the County, the City and the Park District have made considerable progress toward achieving each agency’s civic goals. The City, as the lead Agency under CEQA, has adopted a final environmental impact report. The County’s application for entitlements for the 5-Acre Property is nearing final approval, having been unanimously approved by both the City’s Architectural Review Committee and the City’s Planning Commission.
California Environmental Quality Act (CEQA)
The City of Pleasant Hill is the lead agency under CEQA for the Oak Park Properties Specific Plan project (the Project). On February 24, 2020, the City Council held a public hearing, certified the final EIR for the Project, amended its General Plan, and adopted the Oak Park Properties Specific Plan.
The County is a responsible agency under CEQA for the Project. CEQA Guidelines sections 15091 and 15096 require the Board to consider the environmental impacts of the entire project before approving the Project and before approving any conveyance of property that is a subject of the EIR. The EIR concluded that impacts of the Pleasant Hill Library closure are less than significant because library patrons will have access to two alternative libraries less than 3.1 miles away, and some of the library’s collection will be relocated to a temporary space.
The EIR identified one significant unavoidable impact: the demolition of the existing Pleasant Hill Library would cause a substantial adverse change in the significance of a potentially eligible historic resource pursuant to CEQA Guidelines section 15064.5. The EIR recommended mitigation measures for this impact that will be incorporated into the Project. These mitigation measures include preparing a Historic American Building Survey report to record the building through photographs, drawings, and a written description before demolition, and providing a “History of the Libraries of Pleasant Hill” interpretive display at the new library. Even with the implementation of the mitigation measures in the EIR, the impact of the demolition of the Library would remain significant and unavoidable. The benefits of the Project outweigh these unavoidable adverse environmental effects, as specified in the attached Statement of Overriding Considerations.
Request for Proposals for the Sale of the 5-Acre Property
The 5-Acre Property is a valuable County asset. If the City approves the entitlements for the site, (barring an unforeseen change in market conditions) it is estimated that a sale of the property in the second half of 2020 as an entitled 34-unit single-family residential subdivision would generate $12 - $14 million. Of that amount, the School District would receive approximately $1 million, depending on the final sale price.
In accordance with Government Code section 25515.2(f), the attached Resolution No. 2020/81 authorizes the issuance of a request for proposals (RFP) for the sale of the 5-Acre Property and fixes May 12, 2020, as the date for receiving proposals.
Beginning the RFP process now will allow the County sufficient time to evaluate responses. It also allows the selected proposer sufficient time to complete due diligence and close prior to end of this year’s construction period.
Library Closure and Temporary Operations
Approval of the Project will result in the current Pleasant Hill Library being permanently closed and the existing library building being demolished. It will also result in the County providing library services in Pleasant Hill at a temporary location selected by the City of Pleasant Hill until the City completes the construction of the new City-owned library. The City advises that it expects construction of the new City-owned library to be complete in late 2021.
Staff recommends that the Board authorize the County Librarian to (i) permanently close the existing Pleasant Hill Library at 6:00 p.m. on June 3, 2020, (ii) notify the public no less than 30 days prior to June 3, 2020, of the closure of the existing library and the opening of a temporary library in Pleasant Hill beginning Monday, June 22, 2020, at a site selected by the City of Pleasant Hill, and (iii) execute a sublease with the City of Pleasant Hill for the site of the temporary library. Staff’s recommendation is based on the following considerations:
- Safety. Closing the exiting library while construction of the new library and various infrastructure improvements are undertaken nearby will maximize public safety, especially the safety of the students attending neighboring Pleasant Hill Middle School. In the interest of health and safety, exposure to the noise, dust, heavy equipment in operation, traffic congestion and other activities that are inherent in a project of this magnitude, should be avoided as much as possible by staff, library patrons and students throughout the construction period.
- Minimizing Neighborhood Disruption. Closing the existing library during construction of the new library also permits construction of the residential portion of the project to proceed in tandem with the construction of the new library. This will minimize the length of time that the neighborhood is disrupted by the inconveniences that can result from new construction, such as dust, noise, and traffic congestion.
- Financial Implications. The County, the City and the Park District are each expected to contribute to the cost of infrastructure improvements, including improvements to Monticello Avenue, Oak Park Boulevard and drainage improvements. At present, the County expects its contribution to be approximately $3 million, a significant portion of the total cost of the anticipated infrastructure improvements. The only source of funds available to the County for this purpose are funds that result from the sale of property as part of the overall project. In addition, the County has an obligation to maximize the value of the 5-Acre Property for the benefit of ALL County residents. A delay in the sale of the 5-Acre Property could adversely affect the anticipated sales price for the property, which would translate into not only reduced revenue to the County but less money being available to the School District.
It is not uncommon for cities to relocate the library to a temporary facility during renovation or construction of a new library. For example, Brentwood, Martinez, San Ramon and Walnut Creek have all used temporary locations in the past. During Pleasant Hill’s transition to a new library, the City and County are collaborating to ensure continuity of available library services to the greatest extent possible. To that end, the County will provide more programming than usual in a library the size of the anticipated temporary site. At the Senior Center, the County will offer a collection of 10,000 books and DVDs, some seating, print and Wi-Fi services and holds pickup. In addition, the County will provide laptop computers for access to online resources. And story times will be offered weekly at the Teen Center and “family night” programs will be held monthly at the Senior Center.
Potential Cost Savings from Library Closure
The cost of operating the existing Pleasant Hill Library for the two fiscal years that begin July 1, 2020, is projected to be $3,038,969. Included in this figure are salaries and benefits, books and other collections, electronic databases, general office expenses, facility maintenance and shared services allocation (interlibrary delivery, IT, technical services, collection management, reading and literacy programs and administration). The City’s cost is estimated to be an additional $420,868.
By closing the existing library in June 2020, it is estimated that there will be $800,000-$1 million in savings. These savings could be set aside for the Contra Costa County Library collection to be housed in the new Pleasant Hill Library. If the savings were to be used for this purpose, the new Pleasant Hill Library will open with approximately 72,000 books and other items, including the collection from the temporary library. The County will continue to purchase new books and materials while operating the temporary library.
If the proposed actions are not approved, the project will not move forward.
Speakers: Darcy Mathews, resident of Pleasant Hill; Daniel Safran, Keep Our Library Open (KOLO) commentary read into record; Karen Yapp, resident of Pleasant Hill; Teresa LaCombe, resident of Pleasant Hill; Richard Offerman, KOLO; Elaine Hannah, KOLO; Jim Dexter, KOLO; Nancy Evans, KOLO; Howard Weisman, M.D.; Deborah Donovan, KOLO.
Written commentary was received from (attached): Howard Weisman, M.D.; Deborah Donovan, Esq.; Trevor Ward; Dan and Sharon Fisher; Karen Yapp; Inkee; Shira Steinbeck; Barry Mogerman; Dick Offerman; Linda Marie John; Yeh Tung; Hava Kimmel.