HomeMy WebLinkAboutAGENDA REPORT 2005 0406 CC REG ITEM 08DNOTICE OF CONTINUANCE OF PUBLIC HEARING
A duly noticed public hearing regarding:
Consider Withdrawal from the Ventura County Library
System.
was held on April 6, 2005, at which time the City Council continued
the open public hearing to the City Council meeting to be held on
June 1, 2005, at 7:00 p.m., in the Community Center located at 799
Moorpark Avenue, Moorpark, California.
Dated: April 7, 2005.
Maureen Benson, Deputy City Clerk
MOORPARK CITY COUNCIL
AGENDA REPORT
ITEM
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CITY OF MOORPARK, CALIFORNIA
City Council Meeting
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TO: The Honorable City Council
FROM: Mary K. Lindley, Director of Community Services, .
DATE: March 21, 2005 (April 6, 2005)
SUBJECT: Consider Withdrawal From the Ventura County
Library System
SUMMARY
The City Council is being
receive public testimony,
until May 4 to provide
feasibility of operating
Library. The Notice of
required by State code.
BACKGROUND
asked to open the Public Hearing,
and continue the Public Hearing
additional time to evaluate the
and funding a separate Moorpark
Public Hearing was posted as
In December 1996, the County completed an extensive study
(Providence Study) of the Ventura County Library System
(Library System) in an effort to address a growing funding
shortage. Leading up to this time, library revenues from
the state were increasingly cut and as a result, the County
reduced operating hours and library collection purchases.
Out of the Providence Study came a recommendation to create
a `Library Service Planning Committee ". The Committee
comprised of elected officials was tasked with creating
service areas, categorizing the libraries by size (small,
medium, large), and setting baseline service levels. The
Committee established service areas, baseline service
levels, budget polices including "return to source ", and
recommended that the cities and the County enter into a
Memorandum of Understanding (MOU).
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In 1998, Moorpark, along with the six Ventura County cities
with county libraries (Camarillo, Fillmore, Ojai, Port
Hueneme, Simi Valley, and Ventura) and the County of
Ventura, approved the MOU for the governance of the Library
System (System) . The cities of Oxnard and Thousand Oaks
operate their own libraries, and the Santa Paula Library is
provided by a special district. A Library Commission
(Commission), comprised of elected officials from the eight
member jurisdictions, was formed to discuss library system
operational and funding issues and make recommendations to
the Ventura County Board of Supervisors (Board). In
response to continued decreasing revenue and operational
cost increases, the Commission undertook an effort to
identify options to fulfill the MOU's obligation to return
property taxes collected in a service area, back to the
service area, and to maintain baseline levels of service.
As funding has decreased, these two policies conflict. To
assist the Commission, it hired a consultant, Andy Belknap
from Management Partners, Inc., to evaluate the current
structure and to present findings and recommendations. In
summary, the consultant's recommendation found in the
"Ventura County Library, Analysis of Service and Fiscal
Position" (Study), dated June 2004, was to discontinue the
return -to- source formula for those unincorporated areas
surrounding cities (Option Four). Under this Option, the
return -to- source provision of the MOU would be revised to
apply only to monies collected within incorporated areas or
within an Area of Interest, which does not include a city
where a library already exists. The Camarillo Service Area
is excluded from this provision and would be allowed to
keep the unincorporated area property tax. The exclusion
was proposed because the County and City of Camarillo
believe that a commitment was made to the state for use of
the property tax monies from the unincorporated areas of
Santa Rosa and Los Posas in securing library bond funding.
This matter took place outside of the Library Commission
process. Additionally, the consultant states that under
Option Four, the idea of service areas based on political
jurisdictions would be replaced with the use of Areas of
Interest. According to the consultant, an important policy
associated with Areas of Interest is that there will only
be one city within each Area of Interest.
The member cities were asked to consider the Study and its
recommendations. The city councils' from the cities of
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Fillmore, Ojai, Port Hueneme, and Simi Valley expressed
support for Option Four. The Moorpark and Camarillo city
councils opposed Option Four. To date, the Ventura City
Council has not taken a formal position.
On February 2, 2005, the Moorpark City Council considered
the Study for a second time and offered an alternative to
Option Four that would have altered the return -to- source
policy for 50 percent of the unincorporated library
property tax within the service area. The 50 percent
proposal included the Camarillo Service Area. The Council
also indicated at that meeting that it would reconsider
supporting Option Four if there was no exclusion for the
Camarillo Service Area. At its meeting on February 3, 2005,
the Commission discussed the Study and they were asked by
Library staff to take action on Option Four. At that
meeting, Mayor Pro Tem Clint Harper presented Moorpark's
recommended alternatives to Option Four. Several
Commissioners expressed interest in the proposed
alternative and requested that library staff provide budget
figures reflecting such a return -to- source formula so that
the alternative could be better evaluated. However, rather
than delay a vote on the Commission's Agenda Item 6
(Library Study and Option Four) until after the requested
information was received, the Commission agreed to take a
formal vote so that the record would reflect the
Commission's stance. Prior to the vote, a number of the
Commissioners present stated their understanding that a
favorable vote on Option Four would fail since it was clear
that there was not unanimous agreement, and unanimous
agreement was necessary under the MOU for moving forward
with a recommendation to the Board of Supervisors. However,
the Commissioners all agreed to vote so that the
Commission's position on the issue could be formally noted
for the record. The final vote was 4 to 3 in favor of
Option Four, with the cities of Fillmore, Ojai, Port
Hueneme, and the County voting in favor, and the cities or
Camarillo, Moorpark, and Ventura voting against. The City
of Simi Valley was not present, but had indicated
previously that it supported Option Four.
On March 1, 2005, the Board of Supervisors held a study
session to discuss the Library Study. In the Library
Director's study session report to the Board she states
that Option Four does not eliminate the existing service
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areas and their boundaries, but separates incorporated city
boundaries from the contiguous unincorporated area. She
characterizes this as a `conceptual overlay to the services
areas." In staff's opinion, in the discussions held at the
Commission level, the concept was characterized as
eliminating the county unincorporated areas with the
exception of those areas of interest with single libraries.
The Director's study session report was not provided to the
Library Commissioners nor to the MOU member cities. It was
also reported to City staff that after the Board study
session, sometime between March 1 and March 15, County
Counsel provided the Board with an opinion that unanimous
approval by the Commission is not necessary for it to make
a recommendation to the Board to revise the service areas
boundaries under the MOU and for the Board to take action
on such a recommendation. City staff has not been provided
with a written copy of said opinion from the County as of
the time this report is being written. However, the Library
Director's position that Option Four does not alter the MOU
service area boundaries and County Counsel's opinion
regarding service area boundary revisions seem to be at
odds.
At its regularly scheduled meeting on March 15, the Board
considered an agenda report from the Library Director,
Starrett Kreissman, describing the Commission's February 3
vote as a recommendation to approve Option Four. The Board
approved the staff recommended action, which amends the
Library System's service area boundaries originally
established in the 1998 MOU and discontinues the return -to-
source budget policy.
The Library MOU, Section 15, Amendments, states that the
MOU may be amended by mutual written agreement of all
parties. The 4 to 3 vote taken by the Commission on
February 3 was not a unanimous vote. In fact, the City of
Ventura has not yet taken a position on the proposed Option
Four. Therefore, staff believes the Board's action is
inconsistent with the MOU.
It is clear from the audio tape of the Commission's
February 3, 2005, meeting that most, if not all, of the
representatives believed that because there would not be a
unanimous vote in support or opposition to Option Four,
efforts to approve Option Four would die. However, the
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Commissioners can be heard stating that it would be
desirable to take formal action for the record. Ms.
Kriessman's report to the Commission states that "The Board
of Supervisors will be advised of Commission action on this
item, as required in the MOU ". In staff's opinion, most if
not all of the Commissioners present at the February 3
meeting did not interpret that to mean that the Board of
Supervisor's would be asked to accept the Commission's 4/3
vote as a formal recommendation, nor that the Board would
be asked to take action to approve Option Four's
implementation.
It is staff's opinion that because of the new information,
i.e., County Counsel's opinion regarding revisions to the
service area boundaries and unanimous votes, the Library
Director should have shared this with the Commission prior
to the March 15 action by the Board of Supervisors. A
special meeting of the Commission should have been called
to ensure that the new information would not have altered
the Commission member votes. This would have also served to
notify the MOU parties (the seven affected cities).
With the Board's March 15 action, it is staff's
understanding that the service area boundaries will be
amended and that the current return -to- source budget policy
will be revised. Libraries within incorporated areas will
no longer receive unincorporated tax revenue as a matter of
policy, with the exception of Camarillo, which will
continue to receive unincorporated property tax from
unincorporated areas including Santa Rosa and Los Posas.
The unincorporated library property tax will be allocated
at the discretion of the Commission with a promise to fund
single libraries in incorporated areas at baseline levels.
In several Commission discussions, it has been represented
that the baseline for the Moorpark Library will be the
current 54 hours per week. If no new action is taken, this
policy will be reflected in the Library System's 2005/06
budget. However, there is still a possibility that the
decision to implement Option Four may be reconsidered. The
City /County Manager's group met on March 28 to discuss the
feasibility of new alternative options. They plan to meet
again on April 7. It may be that the group will be able to
present a recommendation to the Library Commission that
will be acceptable to a majority if not all of the MOU
members, including Moorpark. If this is the case and the
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Commission approves the group's recommendation, it will be
forwarded to the Board for consideration.
As has been discussed previously with the Council, the
amount of library property tax available to operate the
Moorpark Library under the current return -to- source policy
is approximately $553,500 ($490,500 from incorporated areas
and $63,000 from unincorporated areas within the Moorpark
service area). With the implementation of Option Four, that
amount will be reduced by $63,000 (the unincorporated
property tax share). Because the Moorpark Library's
adjusted baseline operating budget (54 hours per week) is
greater than the available incorporated property tax, the
Commission has stated that it will appropriate the
necessary amount of discretionary (unincorporated property
tax) funding to ensure that the Library continues to
operate at its baseline. This would amount to an allocation
of approximately $30,000 annually from the Commission. To
ensure that this proposed action takes place, the
Commission must adopt new budget policies. However, if
funding for the System continues to decrease, which in the
short term is likely to happen, the Commission may have to
reconsider any commitments it has made regarding the
allocation of the discretionary property tax funds.
Therefore, the City of Moorpark may not be able to rely on
the additional funding necessary to maintain its library at
the current service level.
Staff has provided the Council with a binder, under
separate cover, containing additional background
information such as the studies and reports referenced in
this document.
DISCUSSION
The Moorpark City Council has discussed the feasibility of
withdrawing from the Library System and operating the
Moorpark Library on its own or working cooperatively with
Moorpark College and /or MSUD to operate a joint library
system. On March 2, 2005, the Council appointed an Ad Hoc
Committee comprised of Mayor Pro Tem Harper and
Councilmember Mikos to look at the options and feasibility
of such action.
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The obvious advantage of withdrawing from the System is
that the City would have control of the day -to -day
operations, service levels, material collection, programs,
and budget. On the other hand, if there is an economy of
scale in regards to expenditures, that will be lost and the
operational costs of an independent library could be
greater than under the current arrangement. Prior to making
a decision, staff believes that there are a number of
issues the City needs to explore in determining the
advantages and disadvantages of withdrawing from the
Library System and operating an independent library. A
typical assumption is that operating a library within a
system provides economies of scale and is less expensive
than operating independently. The Study undertaken by the
Commission showed that the percent of overhead and internal
service expenditures charged by the County (10.890) to the
overall system, to be at the low end of the range of
similar surveyed counties. However, when comparing the
administrative /overhead charges for the Moorpark Library
between FY 2003/04 ($173,000) and FY 2004/05 ($222,000),
we find an approximate 28 percent increase, which is far
greater than the cost of living. City staff was told that
the increase was largely due to salary increases.
Additionally, in FY 2004/05 administrative /overhead costs
($222,000) comprise approximately 37 percent of the
Moorpark Library's total operating budget. Traditionally,
the City has been able to demonstrate that it can operate
programs with far less administrative /overhead costs.
According to the mid - budget projection figures presented to
the Commission on July 15, 2004, by Library staff, it costs
approximately $610,000 annually (FY 2004/05) to operate the
Moorpark Library. Of that amount, $222,000 is for support
and administrative costs. In FY 2004/05, $137,100 was
budget for the total System's core book purchases. The
amount budgeted for Moorpark Library's core book purchases
was $4,100. Direct personnel costs for the Moorpark Library
were projected to be $313,000 for FY 2004/05. The total
expenditure budget for the Moorpark Library for FY 2005/06
is projected to be approximately $630,000. At this
preliminary stage, staff is not able to determine what it
would cost if the City were to operate the Moorpark
Library, either on its own or jointly. However, the County
operates under a Living Wage provision, which creates
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higher personnel costs than would be experienced under the
City's operation.
In making a final decision to operate its own library, the
City needs to consider available funding sources. In FY
2004/05, it is anticipated that the Moorpark Service Area
will have generated approximately $577,500 in property tax
revenues. This is approximately $50,000 (9 percent) greater
than FY 2003/04. Of the $577,500 in FY 2004/05, it is
anticipated that the incorporated area will account for
$512,000 of the total. If the incorporated portion of
property tax continues to grow at a rate of 10 percent in
FY 2005/06, approximately $563,200 in property tax monies
would be available to operate the Moorpark Library. If
Moorpark were to withdraw from the System, it could
anticipate having this revenue source available to operate
the Library. Additional revenue attributed to the Moorpark
service area in FY 2004/05 includes, $39,000 in Vehicle
License Fees, $17,700 for charges for services, $4,000 in
donations, and approximately $9,000 in miscellaneous
revenue. At this time, staff is uncertain about how much of
the non - property tax revenue would come to the City if it
were to operate an independent library.
Additionally, the City of Moorpark is the only City in
Ventura County with a library fee, known as the Library
Facility Fee, collected on all new developments. The
current fund balance for the Library Fee is approximately
$600,000. The City anticipates receiving an additional
$335,000 in library fees in FY 2005/06. Over the past
several years, the City has spent approximately $120,000
from the Library Fund to purchase library collection
materials. Previously, the Council has identified the
Library Fund as a source to expand the Moorpark Library
building.
If the City were to withdraw from the System, it is
anticipated that some additional revenues would be
available (Public Library Fund), but those revenue sources
would be relatively small. The major funding source would
be property tax and the City's general fund. Staff will
need to perform additional analysis before it can draft an
expenditure and revenue budget for operating an independent
Moorpark Library.
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The Council has established an Ad Hoc Committee to discuss
the possibility of operating the Library jointly with
Moorpark College and Moorpark Unified School District. The
Ad Hoc Committee has not met and the interest of the other
parties and the potential impact of their participation
cannot be determined at this time.
There are issues involving library property tax related to
redevelopment tax increment payments and potential
annexations. If the City were to withdraw, it will need to
join with a library cooperative so that it can access book
collections from other libraries (book loan) . It can join
the Black Gold Cooperative, same as the current System, or
join the Los Angeles Metropolitan Cooperative along with
Oxnard and Thousand Oaks. The City may also want to
consider charging non - residents to check out library
materials as does the Thousand Oaks Library to provide
additional operation revenue. However, the City will need
to research the ramifications of such a policy.
According to the Library System MOU, a member city may
withdraw from the MOU upon thirty days written notice to
all parties. Withdrawal from the Library System is to be in
accordance with the provisions contained in the Education
Code. When a city withdraws, it receives those Library
System property taxes and other Library System revenues
directly attributable to the incorporated area of that
jurisdiction. Additionally, real and personal property,
along with any debt directly attributable to said real and
personal property, shall be transferred under the condition
that the city continues to provide for a public library.
With the exception of system -wide resource books and
materials not available in any other system library, the
withdrawing city will retain books and materials for use in
a public library. The City Attorney is looking into the
withdrawal process provided under the Education and Revenue
and Taxation codes and will provide that information to the
City Council.
Summary
It does not appear that the System will have any new
revenue in the near future and there is always the
potential that the System's revenue will continue to
decrease. Under the current arrangement, the pressure on
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the Library System and the Moorpark Library will continue
to grow. The continued need to redistribute the revenue,
including property tax, between the service areas puts the
City's interest and efforts to update and enhance the
Moorpark Library's collection, materials, and services at
risk. The County's March 15, 2005, action to change the
service area boundaries, in fact amend the MOU, without
unanimous vote of the parties causes serious concern.
Before the City Council makes a decision about withdrawing
from the Library System, staff recommends that additional
time be given to obtain more extensive information on
operational, financial, and legal issues.
In the event the Council wishes to withdraw from the
Library System, staff will need to prepare a resolution for
adoption at the next Council meeting.
STAFF RECOMMNDATION
Open the Public Hearing and receive testimony, and continue
the Public Hearing until May 4, 2005.
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