In August 1967, the City of Garden Grove and County of Orange entered into a lease agreement for the purpose of establishing a library facility. The original agreement had a lease term of 50 years, and required the City to maintain the building structure, the surrounding landscaping, and the adjacent parking lot. In return, it was agreed upon that the County would pay the City rent for use of the building, as well as monthly amounts to cover the cost to maintain the structure, landscaping, and parking lot.

In August 1985, the lease was amended to provide that the County take over responsibility for repairing the heating/ventilation/air conditioning (HVAC) system. In October 1995, as a result of a funding crisis in the Orange County Public Library System, which threatened to close two Garden Grove branches and substantially reduce hours for the Regional Library, the lease was amended again to provide a waiver of rent for all three Garden Grove library branches. In April 1996, the waiver of rents was extended through June 30, 1997. In May 1997, the agreement was amended a third time to provide that the payment of fees associated with landscaping, parking lot maintenance, and building repair and maintenance also be waived for the six month period from January 1, 1997 through June 30, 1997.

In November 2000, the agreement was amended a fourth time to formally transfer all responsibility for building maintenance and repair, including attached fixtures, appurtenances, and equipment, to the County. In return, the City agreed to forgive the County’s outstanding rental, building maintenance, and landscaping payments dating back to July 1, 1997 and waived all associated payments for the remainder of the lease term through 2018. Under this amendment, the City agreed to continue maintaining the landscaping, parking lot, and paved areas leading up to the library structure at its own expense. Since 2018, the County has operated the Garden Grove Regional Library under the same terms on a month to month basis.

In May 2023, Orange County Public Libraries (OCPL) was awarded $2,718,498 in grant funds from the State Library and $1,359,249 in County library match funds for a total of $,4,077,747 to be utilized toward tenant improvements at the Garden Grove Regional Library building. Improvements, which are anticipated to be completed by 2025, will include ADA improvements, major systems replacement/repairs (HVAC, roofing, plumbing, electrical, data wiring, fire, life and safety), and FFE (furniture, fixtures, equipment) upgrades.

Prior to commencement of any tenant improvements, it is required that a new lease agreement be established between the County and City. The County and City have worked together to draft a new, fifteen (15) year lease agreement for much needed improvements at the regional library and continuation of library services to the community.

The terms of the new lease agreement are as follows:

Premises: The Garden Grove Regional Library facility is 21,484 square feet and includes ten (10) parking spaces.

Term: Expires on June 30, 2038.

Rent: None. Free library services are provided to the community.

Termination: Lease may be terminated at any time by either Party by giving written notice to the other Party at least one hundred and eighty (180) days prior to said termination date.  However, the 180-day termination provision will not be effective for ten years after the completion of the tenant improvements, which is a requirement of the grant funding.

Repairs and Maintenance: The City, at its own expense, will be responsible for all building repair and maintenance including, maintenance of the HVAC system and landscaping, in a manner that is consistent with maintenance levels at other branch libraries within the City. The County will provide janitorial supplies and services, maintain library equipment and personal property, repair damages caused by County patrons, and provide carpet replacement and interior paint as needed.

There is no financial impact in the current fiscal year as maintenance will not start until the completion of the improvements per the new lease agreement.  Once the improvements are completed, the City will evaluate the maintenance needs and allocate the necessary amount in the Building Structure Rehabilitation Fund to address ongoing maintenance costs associated with the GG Main Library branch (current estimate is between $50,000 and $70,000 per fiscal year).  Any unused budget allocation will be designated in a reserves account in the Building Structure Rehabilitation Fund (Library Maintenance Reserves Account), and carried over into the subsequent fiscal years.  Future years' costs related to the GG Main Library branch maintenance exceeding the annual allocation will be funded from the designed Library Maintenance Reserves Account, unless otherwise approved by the City Council.

It is recommended that the City Council:

• Approve the lease agreement with the County of Orange for continued use of the City-owned library facility; and

•  Authorize the City Manager to execute the lease agreement on behalf of the City and approve minor modifications as may be needed.