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HomeMy WebLinkAbout05/20/2003, C10 - AMENDMENT #6 TO CITY/COUNTY LIBRARY JOINT POWERS AGREEMENT council j ac,Enaa Repoizt 'mm Number Cio C I T Y O F SAN L U IS O B I S P O FROM: Wendy George,ACAO W Prepared By: Betsy Kiser, Principal Administrative Analyst SUBJECT: AMENDMENT #6 TO CITY/COUNTY LIBRARY JOINT POWERS AGREEMENT CAO RECOMMENDATIONS: 1. Approve an amendment to the City/County Library Joint Powers Agreement a) approving the reduction of hours of operation, including the discontinuation of Wednesday evening service as proposed by the County Library; b) discontinuing City funding for Wednesday evening hours; and c) allocating $10,000 per year to be used for general operating costs associated with the provision of library services at the City/County Library. 2. Authorize the Mayor to execute the agreement. DISCUSSION Background Since 1989, the City has held 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 Library assuming responsibility for the library itself and the City taking responsibility for the Community Room and Conference Room. Ongoing maintenance and liability of the facility is shared between the County Library and the City. Any changes to this agreement require the approval of both the County Board of Supervisors and the City Council. Over the years, five amendments have been approved to the JPA, primarily addressing hours of operation and requests for financial support. The first amendment occurred in 1993 in response to County Library budget constraints and resulted in service hours being reduced from the original 54 to 50 hours/week. In July 1996, the County Library advised the City that the Library's overall financial health was suffering and would steadily decline without corrective action. A five- year financial forecast had revealed that the Library's budget had a structural deficit in the range of $300,000 annually. Revenue losses from State take-aways, coupled with general increases in the cost of operations, had worked to erode the Library's long-term financial stability. To partially remedy this deficit, the County Library requested that it be allowed to reduce the weekly hours of operation to 48 by closing at 5:00 p.m. on Wednesdays instead of 8:00 p.m., and opening an hour earlier, at 10:00 am. on Fridays. Because this reduction followed upon the earlier reduction in 1993,the Council reluctantly agreed to this change in the JPA. Cio-- 1 C- Council Agenda ReportAmendment#6 to City/County Library JPA Page 2 In March 1997, the County Library reported to the City that there had been significant public concern about the loss of Wednesday evening library hours. To reopen the Library for three hours on Wednesday evenings, the County Library requested annual City funding in the amount of $12,500 and $12,900 for the 1997-99 fiscal years. The Council acknowledged that approving this funding request would not address the long-term financial concerns that exist with the Library budget. However, recognizing the community need for more Library hours, the Council did approve the request as part of the 1997-99 Financial Plan and amended the existing JPA to reflect the increased hours of operation. As part of the 1999-01 and 2001-03 Financial Plans,the Council again approved funding for additional payments to the County Library to continue Wednesday evening hours at the library and amended the JPA twice more to reflect the additional funding levels. The last amendment continued the agreement automatically until such time that the contract was terminated or amended by either party, and tied future payment increases to the CPI-U, effective July 1 of each year. County Library Request for JPA Amendment On April 2, 2003, the City received a letter from the County Library Director formally requesting approval to amend the JPA to reflect a reduction of weekly open hours from 51 to 43, including the elimination of Wednesday evenings. (See letter of request, Attachment 1) Reasons for the request included the following: 1. A reduction by the State in Public Library Funds, exceeding $150,000 this year with more cuts threatened. 2. A reduction in the County Library's ability to use temporary help. As the largest single user of temporary help in the County system, the City/County Library must reduce its weekly temporary hours from five full-time equivalents (FTE) to two FTE. 3. Payroll projections exceed the adopted budget for FY 2002-03. 4. Inability to continue to back=fill staff vacancies at the City/County Library with staff taken from other branch libraries without a negative impact on other communities, on the travel/mileage budget, and on the staff themselves. The request also encouraged the City Council to maintain the annual contribution and look at the possibility of funding Monday evenings instead of Wednesday. Proposed Amendment to Current JPA After meeting with County Library personnel, staff requested additional information relative to funding evening hours. On April 18, the City received a letter from the County Library Director describing the actual cost of keeping the library open on Wednesday evenings. (See Attachment 2) Citing adequate service, safety, and security for staff and public as the basis for determining staffing levels and then calculating costs, the actual cost for Wednesday evening service is $56,680, of which only about$14,000 comes from the City under the existing JPA agreement. G:StafMser\Agreements\City-County Library\Ubrary Amendment#6 Report 503.doc (!;I o--a Council Agenda Report—Amendment#6 to City/County Library JPA Page 3 Based upon this input, staff is recommending that City Council: 1. Approve the request to reduce open library hours from 51 to 43 hours, including Wednesday evenings; and 2. Continue to provide a reduced and flat subsidy of$10,000 annually, with no COLA, to be used for general operating costs associated with the provision of library services at the City/County Library. Since the City's contribution is not sufficient to actually support specific hours of operation, it does not make sense to continue this linkage as a component of the contract. On the other hand, given our City's traditional support for Library services, staff feels that it would be appropriate to simply acknowledge that we wish to assist the Library with an annual contribution toward its operating costs. However, because our contribution has ceased to be effective in truly assuring a certain service level, and in light of the City's current financial situation, staff is recommending a reduced contribution level. Even with this reduction, the City remains the only City in the County that directly supports the Library system's operations. Meeting Future Funding Needs Lack of adequate and diversified revenues will continue to prevent the County Library from assuming full financial responsibility for the level of library service first established in 1989 (54 hours/week), unless alternative funding becomes available. Library staff is currently investigating the possibility of sponsoring an election initiative that would, if passed, establish a source of funding dedicated to the Library. Early surveys have indicated a public willingness to support the initiative. Should this funding become available, City staff would work with the County Library to increase the hours of operation, including Wednesday evening hours. CONCURRENCES Staff has discussed the proposed funding change with the County Library Director and, understanding the City's fiscal situation,he is supportive of the proposal. FISCAL IMPACT Currently, $14,200 and $14,700 have been proposed in the 2003-05 Financial Plan for funding extended Library hours (Wednesday evening). If Council approves the proposed amendment to the agreement, there will be no additional fiscal impact to the General Fund; rather there will be a savings of up to $4,700. ALTERNATIVES 1. Maintain current funding level, including COLA,but not tie the funds to the provision of Wednesday evening hours ($14200 and $14,700 for FY 2003-05). This is not recommended because funds were originally allocated to specifically provide G:\Smff\Kiser\Agreements\City-County Ubrary\Ubrary Amendment#6 Report 503.doc a jC) \ � Council Agenda Report—AmeeJendment#6 to City/County Library JPA Page 4 Wednesday evening hours and associated staffing. Since those hours are no longer being continued, the nexus for COLA no longer exists and thus the increased level of funding for potential salary increases is not required. 2. Provide no funding. This alternative is not being recommended because the program is a valued service to the citizens in our community, and because future funding will remain, according to the County Library, "precarious, at best'. As a service to our citizens,some level of funding is encouraged. 3. Select a level of funding in between staff's recommendation and prior funding. ATTACHMENTS 1. County Library Letter of Request, April 2,2003 2. County Library Letter Regarding Impact of City Funding,April 18, 2003 3. Amendment#6 to JPA G:\Staft\Kiser\Agreements\City-County Library\Libmry Amendment#6 Report 503.doc C:ta -4 C ANACHMENT I San Luis Obispo City-County Library P.O. Box 8107, San Luis Obispo, CA 93403-8107 _Y 1, 995 Palm Street (805) 781-5991 Library Administration (805) 781-5784 April 3,2003 Ken Hampian City Administrative Officer City of San Luis Obispo Dear Ken: Please consider this letter a formal request to amend language regarding weekly open hours referred to in the Joint Powers Agreement between the City and the San Luis Obispo City-County Library. Specifically,we ask for permission to reduce weekly open hours from fifty-one to forty-three. I have attached a chart listing the proposed changes,which include: • opening one hour later each day,at I l am instead of l Oam • maintaining only one day,Monday,open until 8pm • closing at 6pm,Tuesday,Wednesday,Thursday,and Friday. Although I am proposing an overall net reduction in weekly open hours,included in the mix is an extension of evening hours on Thursday and Friday from 5pm to 6pm. There are numerous reasons we are proposing these changes,some of which include: • A reduction by the State in our Public Library Funds; exceeding $150,000 this year with more cuts threatened. • A reduction in our ability to use temporary help countywide. As the largest single user of temp help in the system,the SLO City Library must reduce its weekly temp hours from five FTE to two FTE. • Payroll projections that exceed the adopted budget for FY 2002-03. • We cannot continue to back-fill.staff vacancies at the SLO City Library with staff taken from other branch libraries without a negative impact on other communities, on our travel/mileage budget, and on the staff themselves. The City currently contributes about $13,000 annually to SLO City Library staffing in order to provide Wednesday evening service. I would like to encourage the City Council to consider Monday evenings as the City-funded evening. Additionally,the two added open hours on Thursday and Friday could also be considered. To clarify an important point,the proposal to reduce open hours comes from Library Administration; it is not a County proposal. Please consider maintaining the important contribution of$13,000 annually. Open hours funded by the City of San Luis Obispo result in a double benefit-direct services to local residents,and an enduring public relations value to the City itself. The City's continued support of open hours,especially during hard times,would be greatly appreciated. Sincerely, Brian A.Reynolds Library Director cc: Wendy George,Assistant CAO;County Administration;Board of Supervisors enclosure Clo '�7 o MACHMENTI Q LO 0 s � L � C � m U Q CL s`ti•'I m C � y E O 0cc o # m MA o M p L) a N a m s °o rn c c L is om m J i � I co O Ll- M O !C L .Q T J Y V t � l 0 J N m O � L ; 0 O -� "; 75 O OF- CLw a) C10 .O O O CD cc W '(D ,. -o L U O N N N J L L co °° Cio �u ATTACHMENT San Luis Obispo City-County Library g. P.O. Box 8107, San Luis Obispo, CA 93403-8107 995 Palm Street (805) 781-5991 Library Administration (805) 781-5784 April 18, 2003 Ken Hampian City Administrative Officer City of San Luis Obispo Dear Ken: Please consider the following comments in response to Wendy George's questions about the impact of the City's $13,000 contribution to fund Wednesday evening open hours (from 5 to 8 PM). Our current yearly estimate to staff this building for Wednesday evenings, providing adequate service and safety and security for staff and public,is $56,680. This figure was calculated by estimating an average cost to staff this library of$364.00 per hour. As you can see, this figure is much higher than the current contribution and reflects a detailed analysis of minimum staffing levels for all county branches. The substantial difference in is due, in part,to yearly adjustments in salaries and benefits and our commitment to safety and security since the original formula was established. This is a complex building with two floors and four service points (service desks in the children's area on the ground floor, in the reference area on the second floor, in the audio-visual area on the second floor and the circulation desk on the ground floor), which are staffed by at least one person per desk. Reducing your contribution will require the library to absorb this adjustment in other accounts in the Library budget. Reductions are most frequently taken from the materials budget, already below the average for benchmark libraries. Wednesday evening use is usually less than the other evening hours. Evening users are typically Cal Poly students and families with small children. They are frequently independent users of printed materials,users of the online full text resources,browsers in the audiovisual area for materials to include CD's and DVD's and those needing homework assistance in the children's area. A frequently heard comment supporting evening hours is free and more available parking. CAO-r) ATTACHMENT 2 The Library hopes that the City will continue to support evening hours at the San Luis Obispo City-County Library and while we are unable to maintain evening hours on three weekdays, we trust that you will continue to support our open hours on Monday nights. I hope that this answers your questions and I look forward to your response. Sincerely, Brian Reynolds Library Director C�c WendyGeorge—Assistant CAO; County Administration; County Board of Supervisors C(D C' AT[ACHMEW 3 AMENDMENT#6 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 decrease hours of operation, including discontinuing Wednesday evening hours, until alternate funding sources become available; and WHEREAS,the County has requested continued funding from the City for operation of the Library and the City so desires to provide funding at a reduced level. NOW,THEREFORE,THE PARTIES HERETO AGREE AS FOLLOWS: • Paragraph five of the 1989 agreement is hereby amended by the addition of the following sentence at the end of the paragraph: "The Library will be open to the public at least six days a week and 41 hours a week and will discontinue Wednesday evening hours until further notice from the County." In addition, the City will discontinue funding for Wednesday evening hours but will pay the County a sum of $10,000 annually to be used for general operating costs associated with the provision of library services." • Amendment No. 5 approved by the City Council and the County Board of Supervisors on September 18,2001 is hereby superseded by this amendment. In all other respects,the existing agreement between the parties remains in full force and effect. This amendment will be effective on the last day of execution set forth below. CA Amendment No. 6—City/County Library JPA R�RCI IM� Page 2 COUNTY OF SAN LUIS OBISPO CITY OF SAN LUIS OBISPO Mike Ryan David F. Romero Chairperson of the Board of Supervisors Mayor Approved by the City Council this 20'day of May, 2003. Approved by the Board of Supervisors this day of 2003. ATTEST: Julie Rodewald Lee Price Clerk of the Board of Supervisors City Clerk Amendment No. 5 -City/County Library JPA APPROVED AS TO FORM: JAMES B LINDHOLM JONATHAN LOWELL COUNTY COUNSEL CITY ATTORNEY By: � Deputy County Counsel CQyOomey