That the City Council approve and authorize the City Manager to execute a new long-term lease agreement between the City of La Habra and the County of Orange for the County's continued library operation at the City-owned La Habra Branch Library building located at 221 East La Habra Boulevard.

Background
 

The La Habra Library, located at 221 East La Habra Boulevard, is part of the Orange County Public Libraries (OCPL) system. The City owns the building and land, while library services, staffing and operations have historically been provided by the County of Orange. In 2024, OCPL was awarded funding from the California State Library's Building Forward Library Facilities Improvement Program. This equity-based grant program helps pay for major capital projects for public library buildings throughout the state to help address critical maintenance needs, infrastructure improvements, improve energy efficiency and sustainability, extend digital access, and expand physical access to library facilities. According to information provided by OCPL, the County subsequently approved a total construction budget of $6,660,000 to renovate the La Habra Library building. Construction began in 2025 and will take as long as 24 months to complete. The capital improvement project includes Americans with Disabilities Act (ADA) improvements, major systems replacements/repairs (HVAC, roofing, plumbing, energy efficient lighting, electrical, data wiring), fresh paint, fire safety improvements, interior renovations, and new furniture, fixtures and equipment upgrades. The overall goal is to create an updated, welcoming and safe environment in the library that reflects the growing and evolving needs of the La Habra community. 

 

La Habra Library Lease
 

The OCPL currently operates the La Habra Library under a lease that was entered into on December 4, 1980, and is set to expire on December 3, 2035. Due to the extent of the renovations being conducted, along with certain facility enhancements that were requested by the City, the OCPL has requested that the City Council consider and approve an updated, new lease agreement which replaces, restates and supersedes the prior lease agreement and includes updated repair and maintenance obligations, some of which go into effect on January 1, 2036. If approved by City Council, the new rent-free lease will have a term ending on December 3, 2060. 

 

Based on the need to ensure continuity of critical library services, the proposed new lease agreement includes the following notable terms and conditions:

1. Term: A renewed long-term lease commitment (May 18, 2026, to December 3, 2060) that can provide stability for regional library planning and services. Two 5-year renewal options are included in the proposed lease;
2. Maintenance and Repair Responsibilities: A clearer delineation of duties and responsibilities with the City continuing to maintain landscaping around the building, as well as certain building maintenance and future HVAC system maintenance/replacement responsibilities, and the County responsible for interior operations, conditions and specialized library equipment;
3. Facility Improvements: Provisions for future interior updates to meet current and evolving needs of the community and library system;
4. Liability and Insurance: Updated indemnification clauses that align with current risk management standards for both the City and County;
5. Rent: There is no rent proposed due to the 'public benefit' and free library services offered by OCPL;
6. Termination: Lease may be terminated, without penalty, at any time by the City or County after December 4, 2045, by giving written notice to the other Party at least one hundred and eighty (180) days prior to the termination date. It should be noted that the lease may be terminated prior to December 4, 2045, but in doing so, the City will incur a Termination Cost as indicated in the proposed lease agreement.  

The City of La Habra currently leases the library building at no cost to the County of Orange. If approved by City Council, the new proposed lease would continue this no-rent arrangement. The County assumes the significant operational costs of the library, estimated at several million dollars annually, which would otherwise likely fall to the City's General Fund if the facility was owned and operated by the City as a municipal library. There is no immediate impact on the City's current fiscal year budget beyond routine exterior landscaping, which is already included in the City's Public Works budget.  However, if the lease agreement is approved by City Council, the City will be responsible for certain HVAC, plumbing, electrical and other related building maintenance costs starting in 2036. In exchange for this new obligation, OCPL has agreed to fund the full cost to replace the building's roof, including upgrading the roofing materials at the City's request to a red clay Spanish tile style that is found on other City-owned public buildings in the downtown area, such as City Hall, the Police Station and the Community Center. This request was made to ensure the Library building had a well-constructed, long-lasting roof structure and material that would aesthetically match the style found along La Habra Boulevard. OCPL estimated that roof replacement, including approximately $70,000 for upgraded roofing materials, would cost more than $750,000 in total, and agreed to include that cost in their overall building renovation budget, at no cost to the City.