HomeMy WebLinkAbout07/23/1996, C-2 - CHANGE TO CITY/COUNTY LIBRARY JOINT POWERS AGREEMENT council I Z3-qlc
agenda REpoRt
C I TY OF SAN LU IS O B I S P O
FROM: Ken Hampian, Assistant City Administrative Officer {�
Prepared By: Wendy George, Assistant to the CAO `')
SUBJECT: Change to City/County Library Joint Powers Agreement
CAO RECOMMENDATION
1. Approve and authorize the Mayor to execute an amendment to the City/County
Library Joint Powers Agreement reducing the Library's hours of operation from fifty
hours per week to forty-eight hours per week.
2. Approve and authorize the Mayor to sign a letter to the Board of Supervisors
expressing the City's concern that any future reduction of hours will seriously effect
the Library's availability to the public.
DISCUSSION
Background
The City currently holds a Joint Powers Agreement (JPA) with the County of San Luis
Obispo for the operation and maintenance of the City/County Library. Under the
agreement, daily operations are split between the County and the City, with the County
taking responsibility for Library operations and the City taking responsibility for the
Community Room and Conference Room. Ongoing maintenance and liability for the facility
is shared between the County and the City. Any changes to this agreement require the
approval of both the County and the City.
The County has recently advised the City that the Library's overall financial health is
suffering and will steadily decline without corrective action. A recent five-year financial
forecast revealed that the Library has a structural deficit in the range of$300,000 annually.
Revenue losses from State take-aways, coupled with general increases in the "cost of doing
business", have worked to erode the Library's long term financial stability. County Library
staff has proposed several immediate expenditure reductions, including a reduction in hours
of operation, while it works to develop long term plans to balance the budget.
The City/County Library was originally open to the public a total of 54 hours per week.
Due to Library budget constraints in 1993, Council agreed to the County's request for a
reduction of hours to 50 per week. The County is now proposing that the total hours be
reduced to 48 per week effective in early August.
Council Agenda Report - Change to City/County Library JPA
Page 2
Summary of JPA Amendment
Because the amended Library JPA requires the County to keep the City/County Library
open a minimum of 50 hours per week, six days per week, the City must agree to any
reductions to service. As such, the County has prepared an amendment to the Library JPA
that reduces Library hours by 2 hours per week, but maintains the six days per week
requirement, to be effective as soon as executed by both parties. Specifically, the library will
close at 5:00 p.m. instead of 8:00 p.m. on Wednesdays, but will open an hour earlier at 10:00
a.m. on Friday, making the opening hour consistent for all days of the week. The Board of
Supervisors will take action on the amendment at their July 23, 1996 meeting, and the new
hours are to become effective in August.
Concern about Future Reduction in Hours
Staff is concerned that the proposed change in hours is the second time that the County has
requested a reduction since the formation of the JPA in 1989. While we appreciate the
library's new"fiscal realities", and the fact that the County is currently working with Friends
of the Library Groups across the county to formulate options for improving the Library's
long-term health, any additional reduction in hours could significantly impact the public's
ability to access the Library. Accordingly, staff is suggesting that the attached letter be sent
to the Board of Supervisors expressing this concern.
FISCAL IMPACT
The County anticipates that the savings from the reduced hours of operation at the
City/County Library will total $39,000 during the 1996-97 fiscal year if the reductions are
implemented by early August.
ALTERNATIVES
1. Deny approval of the amendment to the JPA agreement with the County. If the
Council were to deny approval, it is likely that the County would request that the
City make up the anticipated $39,000 savings created by the reduction in hours.
Attachments
1 - JPA Amendment
2 - Letter to Board of Supervisors
3 - Proposed Schedule of Library Hours
4 - County Administrator's budget comments and recommendations
AMENDMENT #2
CITY-COUNTY LIBRARY JOINT POWERS AGREEMENT
WHEREAS, the City of San Luis Obispo and the County of San Luis Obispo entered into
a Joint Powers Agreement on October 3, 1989 for the ownership and operation of a City-County
Library; and
WHEREAS, the parties desire to amend said agreement to reduce the required hours of
operation;
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
1. Paragraph five of the existing agreement is hereby amended so that the last
sentence thereof reads as follows:
"The Library will be open to the public at least six days per week and 48 hours
per week".
In all other respects, the existing agreement between the parties remains in full force and effect.
Effective on the last day of execution set forth below.
COUNTY OF SAN LUIS OBISPO CITY OF SAN LUIS OBISPO
Laurence L. Laurent Allen Settle
Chairperson of the Board of Supervisors Mayor
Approved by the Board of Supervisors this _ day of , 1996.
Approved by the City Council this _ day of , 1996.
ATTEST:
Julie Rodewald Bonnie Gawf
Clerk of the Board of Supervisors City Clerk
APPROVED AS TO FORM AND LEGAL EFFECT:
JAMES B. LINDHOLM JEFF JORGENSEN
COUNTY COUNSEL CITY ATTORNEY
By:
Deputy ty Counsel ity AAO*y
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444 r CitySa1� luiS OBISPO
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4� S O 990 Palm Street■San Luis Obispo, CA 93401-3249■ 805/781-7119■ FAX 805!781-7109
July 23, 1996
Laurence L. Laurent, Chairperson,
and Members of the Board of Supervisors
County of San Luis Obispo
County Government Center
San Luis Obispo, CA 34908
Dear Chairperson Laurent and Members of the Board of Supervisors:
The City Council recognizes that revenue losses from the State, as well as general increases
in operational costs, are having an on-going impact on the City/County Library's financial
picture. Consequently, we have approved the County's request for an amendment to our
joint powers agreement to reduce Library hours from 50 to 48 per week.
We also appreciate your efforts to work with Friends of the Library groups and others to
develop plans for long-term financial stability. However, we hope that such plans will not
include further reductions in hours of operation. The current amendment represents the
second reduction that has occurred since the Joint Powers Agreement was signed in 1989.
The first was in 1993 from 54 hours to 50 hours per week. Further reductions would
definitely impact the public's ability to adequately access the Library and should be avoided
if at all possible.
The City Council looks forward to your successful development of a plan to strengthen the
long-term financial health of the library system.
Sincerely,
Allen K Settle
Mayor
c: Bob Hendrix, County Administrator
Brian Reynolds, Library Director
® The City of San Luis Obispo is committed to include the disabled in all of its services,programs and activities. w
Telecommunications Device for the Deaf(805)781-7410 C�
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ATTACHMENT 3
I B.U. NO. 4000
B.U. NO. 4000
f COUNTY ADMINISTRATOR'S COMMENTS AND RECOMMENDATIONS
1 The recommended 1996-97 Library Budget is significantly lower.This is largely due to the fact that the 1995-96 adopted
I budget contained almost $700,000 in one-time funding for capital projects and new reserves that inflated the budget.
These monies aside, the recommended level of funding for library operations is actually comparable to the current year
and will provide adequate funding to operate the new Nipomo Library which is scheduled to open in the summer of
1996.
While it is not readily apparent in the proposed Library budget, it is important to understand that the Library s overall
financial health is suffering and will steadily decline without corrective action. A recent five-year financial forecast
revealed that the Library has a structural deficit in the range of $300,000 annually. Revenue losses from State take-
aways, coupled with general increases in the 'cost of doing business', have worked to erode the Libraryrs long term
financial stability. Fortunately, however, the department has learned of this information in time to develop plans that will
allow the Library to gradually work toward a balanced budget. These plans will likely include a combination of
expenditure reductions and revenue enhancements.
In the short-term, the Library is relying on a strong fund balance to help finance the 1996-97 budget. The fund balance
was created in the current year budget by curtailing all but critical spending and implementing a selective hiring freeze
(e.g.where possible,deferring filling of open positions). In order to preserve the fund balance so that it will be available
to finance future year budgets, the Library Director will need to continue these actions and phase in minor reductions
in hours of operation to libraries across the County during 1996-97.By taking these types of actions, the Library Director
will have more time to develop longer term strategies for permanently balancing the Library's budget.
Recommended funding for the salaries and benefits accounts is 4% higher for 1996-97. All current positions are
recommended for funding. In addition, increased monies for temporary help assistance have been included to lessen
service level reductions to the public in light of the selective hiring freeze.
Services and supplies accounts are down 11% from 1995-96. The reduction is almost exclusively in the reading
materials budget. Even with this reduction, the Library will still retain a $350,000 reading materials budget. The other
charges accounts include funding to transport the Nipomo Library modular building to Santa Margarita once the new
Nipomo Library is opened. No fixed assets are recommended for funding.
The recommendation includes a 5% contingency and $14,000 to create a new designation for computer equipment
replacement.
Recommended revenues for 1996-97 are comparable with the 1995-96 budget. The revenue projections include
$25,000 that will be generated through resuming a 50 cent request fee for books and materials.
ATTACHMENT 4
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