Santa Cruz County Grand Jury • 2004-2005

2004-05 Interim Final Report

Published: May 31, 2005 33 pages
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Findings 54 findings

F1
Current library system organization balances two conflicting library service issues: • the desire to maintain neighborhood-level branch libraries; and • the economic necessity of maximizing funding resources by centralizing programs and services.8
F2
The Director of Libraries is supervised by the City Manager and has department head status under the City of Santa Cruz’s personnel system. The Director serves as staff to the Library Joint Powers Authority Board.
F3
Although the JPA Board governs the library, the staff are Santa Cruz City employees.
F4
The Joint Powers Board consists of nine members: • Two members appointed by the Santa Cruz City Council from among its members; • Two members appointed by the Santa Cruz County Board of Supervisors from among its members; • One member appointed by the Capitola City Council from among its members; • One member appointed by the Scotts Valley City Council from among its members; and 8 Santa Cruz Public Libraries, The Santa Cruz Library System Facilities Master Plan, 2001/02 – 2005/06, September 2001. - 8 Santa Cruz City-County Library System • Three at-large citizens are appointed by majority vote of the board from the qualified electors of the Library Service Area and represent the geographic diversity of the county.
F5
The JPA Board oversees the operations of the Santa Cruz City-County Library System. It oversees the library budget, adopts and oversees enforcement of rules, regulations and policies necessary for the administration of the library system; sets hours and levels of service for operation of the library system and evaluates the quality of library service. The JPA Board does not concern itself with the day- to-day functioning of the library or the details of the library budget. It relies heavily on staff input to make decisions. The JPA Board duties include conferring with “the City Manager concerning the job performance of the Director of Libraries and any modification or renewal of the contract of the Director of Libraries.”9
F6
The City Manager consults with other administrative heads of member jurisdictions for the director’s personnel reviews (County Administrative Officer, City Manager of Scotts Valley, City Manager of Capitola).
F7
The Director of Libraries was last reviewed in 1999 and initiated a self-review in 2002-2003.
F8
JPA Board members and Santa Cruz City staff could not recollect when the JPA Board was last asked for advice on the performance of the Director of Libraries. Measure B
F9
Measure B, passed by voters in 1996, was a new library tax in the form of a quarter-cent sales tax. Polling data showed that the public valued services to children and seniors, increased open hours and an expanded collection.
F10
The sales tax went into effect March 1997 with funds becoming available in the fiscal year beginning July 1, 1997. The ordinance terminates on April 1, 2013.10
F11
When people voted on Measure B, its purpose was for more open hours and some capital expenditures to expand places like Scotts Valley and Felton branches and to renovate and build when necessary. Measure B did not expressly call for renting additional administrative space.
F12
Measure B commitments included:11 Commitments accomplished: • Youth Service (YS) staff added and collections expanded; 9 Joint Powers Agreement between the City of Santa Cruz and the County of Santa Cruz and the Cities of Capitola and Scotts Valley Relating to Library Services, May 1996. Library Joint Powers Board Bylaws, Article II, g. 10 “Text of Measure B (1996 November),” http://www.santacruzpl.org/libraryadmin/btext.shtml. Director of Libraries, “Measure B Promises and Accomplishments”, December 21, 2004. Santa Cruz City-County Library - 9 • Mobile YS Librarian added; • First 5 Commission Read to Me Grant received; • Bookmobile purchased, staff hired; • Outreach staff for seniors hired and programs developed; • Library Book and Materials budget increased 44 percent in Fiscal Year 97-99, but declined starting after January 2002; • Open hours expanded; • Reopened Live Oak Branch in 1998, County RDA began construction of new facility in 2004; • Scotts Valley Branch doubled in size, homework center added; • Deferred maintenance accomplished at various branches; and • Multiple improvements made in automation and internet access. Items accomplished, not part of original commitment:12 • Opened new branch in Capitola; • Asbestos abatement at Central Branch, new carpet, painting and HVAC repair; • System Services staff moved to 1543 Pacific Avenue in downtown Santa Cruz; and • Bathrooms and other basic facilities added to Garfield Park Branch. Commitments not accomplished:13 • Construct 2,900 square foot addition to the Central Branch (based on further study, library staff states that 32,000 square feet are needed); • Renovate historic structure occupied by Felton Branch (renovation proved to be impractical and expensive); and • Install one-stop kiosk-type information centers with public access computers throughout county – unworkable without 24/7 staffing. Director of Libraries, “Measure B Promises and Accomplishments”, December 21, 2004. Director of Libraries, “Measure B Promises and Accomplishments”, December 21, 2004. - 10 Santa Cruz City-County Library System Lease Negotiations
F13
With the passage of Measure B, the library system increased services, added to its collection and hired additional staff, necessitating more space. As a result of overcrowding due to expansion, Administrative Services, Technical Services and Outreach moved to 1543 Pacific Avenue in October 1997.
F14
The JPA Board directed the Director of Libraries to recommend rental space, including possible location, budget and timeline, to accommodate overflow from the Central Branch.
F15
To accommodate the newly hired staff (due to the passage of Measure B) by October 1997, prompt location of space and timely execution of a lease was necessary. Since the Santa Cruz City Council did not meet in August 1997, library and City of Santa Cruz Redevelopment Agency (RDA) staff requested that the Santa Cruz City Manager be authorized to approve a lease agreement. The lease was subject to the approval of the Santa Cruz City Attorney and the JPA Board.
F16
The recommendation from the Director of Libraries and the Santa Cruz City Director of Redevelopment stated that the new space should be located conveniently to the main branch of the library, should comprise approximately 10,000 square feet and should have a parking area adequate for loading, unloading and parking of book vans. One of the objectives of having library headquarters downtown was to contribute to the city’s recovery from the 1989 earthquake. The building at 1543 Pacific Avenue met the above criteria.
F17
Alternative sites were not considered since there were no other available sites that met the above criteria. City Redevelopment Agency staff recollects that the library director identified this site as meeting the specification.
F18
The lease approval process began with negotiation between the City of Santa Cruz Redevelopment Agency staff and the landlord. The Santa Cruz City Council approved the basic lease terms but was not involved in the details. They relied on the background material prepared by RDA staff.
F19
The original lease, executed in Santa Cruz on September 8, 1997 between Penak J. Ltd. and the Santa Cruz City-County Library System, was signed by the Santa Cruz City Manager. The lease had a five-year term with an additional five-year renewal option.
F20
The JPA Board approved the Director of Libraries’ recommendation that the JPA Board adopt a resolution to renew the lease between the library system and Penak J. Ltd. for Library administrative headquarters at 1543 Pacific Avenue for an additional five-year term that ends September 30, 2007. Library Administrative Headquarters
F21
The lease of library administrative headquarters has cost Santa Cruz County residents millions of dollars. In the eight years leading up to 2005, the cost has Santa Cruz City-County Library - 11 been $1,936,006. That cost increases annually. By the end of the second five-year lease term, more than $2.5 million will have been spent on administrative headquarters. CALENDAR RENT14 NNN15 + TOTAL ELEVATOR HVAC ANNUAL YEAR UTILITIES RENT CONTRACT CONTRACT COST 1997-199816 150,888 33,096 183,984 -0- -0- 183,984 17 1999 174,108 35,292 209,400 -0- -0- 209,400 200018 182,232 41,712 223,944 -0- -0- 223,944 2001 190,800 52,884 243,684 3,000 -0- 246,684 2002 199,392 57,768 257,160 3,166 5,040 265,366 2003 202,044 58,152 260,196 5,040 5,040 270,276 2004 204,060 55,416 259,476 5,040 5,040 269,556 2005 201,576 55,140 256,716 5,040 5,040 266,796 TOTAL 1,505,100 389,460 1,894,560 21,286 20,160 1,936,006 Table 1. Library Administrative Headquarters Rent and Cost History Sources: Lease for 1543 Pacific Avenue dated 8 September 1997 Renewal of Library Administration Building Lease dated 10 April 2002 Chart from Santa Cruz City Manager, 4 April 2005
F22
The Administrative Unit occupies 3,500 square feet in the Pacific Avenue Suite and includes offices, a conference room and an automation training room. Space is adequate but will not sustain growth. It would be hard to add staff for a grant 14 In 2005, rent was reduced by $379 per month. Triple net. See Appendix: Definitions. Dates are from October 1997 through December 1998. A memo confirming the area of the premises was signed on June 25, 1998. The original square footage stated in the lease was 11,770 square feet. In this memo, the area was confirmed actually to be 11,190 square feet. Rents are based on square footage. Adjustments were made to compensate for the overpayment of rent. On May 17, 2000, the library system added another 1,123 square feet of rental space, for a total of 12,313 square feet. - 12 Santa Cruz City-County Library System program or special project. Foreseeable future needs would be met by 4,500 square feet.19
F23
Technical Services occupies 5,500 square feet. Sixty percent is devoted to staff work areas including routing for daily delivery to all branches and the balance to shelving for books and other materials being processed. Seven thousand square feet is required to meet current and future needs.20
F24
The Outreach Program occupies 856 square feet on Pacific Avenue. Sixty percent of the space is devoted to shelving the library materials and other supplies. The Outreach Program staff workspace of 343 square feet for six people, even workers who are in and out of the building, does not meet library standards. “Conditions are absurdly overcrowded.”21
F25
The Outreach Program requires at least 1,500 square feet for workspace and shelving. If staff moved to a stand-alone facility, a bathroom, break room and storage space would be needed. Access to a loading dock and vehicle parking is required. The space could be located elsewhere in the county near major thoroughfares.22
F26
Library staff reported that the heating system does not work well; the boiler is very old, and some offices are often cold. The fire exit from the basement is through The Velvet Underground, a neighboring business. The door was locked in the past, but this has been remedied.
F27
Library staff says that the elevators are small, old, and break down frequently. Since the library system pays for elevator servicing and repair costs, this adds to the expense of leasing administrative headquarters.
F28
Loading docks for Outreach and Routing/Receiving as well as limited staff parking are available. The building meets the load-bearing requirement for books.23
F29
In Outreach, three people shared a desk designed for one. Crates of books were stacked at the end of aisles on the first floor. In contrast to other rooms, one room had empty shelves.
F30
In June 2004, the JPA Board appointed a subcommittee to consider the cost and relocation of library administrative headquarters. No action was taken.24 19 Santa Cruz Public Libraries, The Santa Cruz Library System Facilities Master Plan, 2001/02 – 2005/06, September 2001. 20Santa Cruz Public Libraries, The Santa Cruz Library System Facilities Master Plan, 2001/02 – 2005/06, September 2001. Santa Cruz Public Libraries, The Santa Cruz Library System Facilities Master Plan, 2001/02 – 2005/06, September 2001. Santa Cruz Public Libraries, The Santa Cruz Library System Facilities Master Plan, 2001/02 – 2005/06, September 2001. Memo from Director of Libraries to Library Joint Powers Authority Board regarding Headquarters Space, 26 January 2004. Santa Cruz City-County Library - 13 Location of Library Headquarters
F31
The library system employs 117.98 full time employees. Forty-two people work at administrative headquarters. Twenty-two of them work two four-hour shifts per week on public desks at the Central Branch, and one senior manager works one four-hour shift. This is the equivalent of 2.4 full-time equivalency (FTE) positions on the Central Branch circulation desk and 2.1 FTE positions at Central Reference and Youth Services. Library system administration believes that administrative headquarters must be located within easy walking distance to the Central Branch.
F32
Locating administrative staff close to Santa Cruz City Hall and the County Building is convenient. Administrative staff workers make daily trips to Santa Cruz City Hall that save mail/delivery time and maintain personal contacts with colleagues in the Finance and Human Resources Departments.25
F33
As many staff as possible work on public desks to preserve their contact with the public. Library management believes that keeping in touch with the public allows Technical Services staff and management to do better jobs. Working on a public desk gives the staff involved a sense of the impact of their work on the public and other staff.26
F34
Rotation of shifts was instituted to relieve staff from long hours “on desk” where repetitive motion could lead to stress injury.
F35
According to some staff members, rotation is inconvenient because the worker stops one job in the middle of the day and goes to another. Because staff fill in at branches other than Central, rotation involves travel time. Staff must acclimatize themselves to different and changing work situations if they fill in sporadically.
F36
The library system has an existing courier service that delivers library materials throughout the 10-branch system, including administrative headquarters. Funding
F37
Library funding comes from the following sources: • County Library Fund - Property tax, designated for library service, collected in the unincorporated areas and in the cities of Capitola and Scotts Valley; • Member contributions – The cities of Santa Cruz and Watsonville contribute money from their general funds; • Measure B – a quarter-cent sales tax (approved by voters in 1996); 24 Memo from Director of Libraries to Library Joint Powers Authority Board regarding Headquarters Space, 26 January 2004. Memo to the Joint Powers Authority Board from Director of Libraries regarding Headquarters Space, 26 January 2004. Memo to the Joint Powers Authority Board from Director of Libraries regarding Headquarters Space, 26 January 2004. - 14 Santa Cruz City-County Library System • Library fee and fine revenue; • State of California Public Library Fund grant; and • Income from library bequests and trusts.
F38
According to library staff, Measure B sales tax originally generated sufficient money for library operations but not enough for capital projects. The library has enough revenue to operate the city-county library system. It does not have enough money for updating facilities.
F39
The library budget has been hit by: • Higher expenses for employee benefits such as workers’ compensation; • A recession that reduced sales-tax revenues; and • A state government that took local tax revenues to narrow its budget gap.
F40
In response to a projected $700,000 budget deficit, the JPA Board:27 • increased the library system’s schedule of fees and charges; • shortened hours; • eliminated a cumulative total of 9.13 positions since June 2003; • accepted early retirements from staff; • cut library materials budget by $350,000; and • cut Supplies and Services budget – training, staff travel to conferences, supplies for materials processing.
F41
The Director of Libraries estimated the anticipated library system budget deficit for FY 2005-2006 to be $200,384.28 In May 2005 that figure was revised to $173,000.29 This figure may look insignificant when looking at Fiscal Year 2004-05 expected expenditures of $10.8 million,30 but it was enough for the library system to consider closing a branch. Outcomes
F42
The JPA Board has discussed going to the voters for a bond issue and how to otherwise fund long-term capital needs. There is no contingency plan if a bond 27 Director of Libraries, “The Library Budget Deficit: What’s Going On?” 10 November 2003, http://www.santacruzpl.org/libraryadmin/deficit.shtml. Memo from Director of Libraries to Library Joint Powers Authority Board regarding FY 2005-06 Budget Increases and Revenues, 30 March 2005. Santa Cruz Sentinel, “Library chief’s apology falls short for supervisor,” 4 May 2005. 30Santa Cruz Public Libraries, the Library System’s Revenue and Budget: FY 2004-2005, http://www.santacruzpl.org/libraryadmin/04-05bud.shtml. Santa Cruz City-County Library - 15 issue doesn’t pass. If it doesn’t pass, money may continue to be spent the same way it is spent now. The cost of library administrative headquarters is $266,796. this year and will increase each year.
F43
A minimum of $16.8 million is required for capital improvement. If Scotts Valley and Capitola are included the figure goes up to $24.2 million.31
F44
A bond issue on the ballot would request voters throughout the county to approve a 30-year general obligation bond measure on the order of $20 million to support expansion or replacement of the Central Branch, construction of a new branch at Felton, expansion of the Aptos parking lot, upgrading the automation system and installing new materials handling and security technology. The cost would be roughly $6.30 per $100,000 of assessed valuation, or $30 annually for the typical property taxpayer.
F45
The earliest a bond proposal could be ready for placement on a ballot is 2006.32
F46
Some JPA members feel a bond measure would have difficulty passing. They have stated that if a bond issue is proposed, the public should be polled to see if they would vote for it.
F47
JPA Board members say that administrative headquarters rent is high, but holding a bond election is expensive, and the JPA would probably be responsible for that cost.
F48
In the City of Salinas, voters rejected a ballot measure on November 2, 2004 to boost sales tax to preserve city services.33
F49
The Salinas City Council voted on December 14, 2004 to permanently close all three of the city’s libraries.34
F50
Santa Clara County’s library tax ($33.66 per year for a single home, comprising 20 percent of its operating budget) expires in June 2005. Efforts by its Joint Exercise of Powers Authority to pass a measure to renew and increase the tax failed last year. In May 2005, a mail-in ballot offering two options will be sent out. Measure A will renew the tax at the same amount and will avoid service cuts for the coming year. Measure B will increase the amount by $12 per year per single home to restore some cuts in hours and services. The Santa Clara library district has spent at least $80,000 on an opinion poll. The cost of running the election will be $1.8 million (a third of the $5.4 million the tax would raise annually).35 31 Director of Libraries, Library Capital Improvement Program, 1 September 2004. The Mid-County Post, “Library Expansion,” October 5, 2004-October 18, 2004. Santa Cruz Sentinel, “Cash-strapped Salinas set to close libraries,” 26 December 2004. Santa Cruz Sentinel, “Cash-strapped Salinas set to close libraries,” 26 December 2004. San Jose Mercury News, “Library to try tax vote again,” 24 March 2005. - 16 Santa Cruz City-County Library System
F51
Voters in San Luis Obispo rejected a proposed quarter-cent sales tax hike on November 2, 2004, which would have kept their libraries solvent, necessitating reduced hours and staff layoffs.36
F52
Voters in Berkeley defeated Measure L, a library parcel tax, in November 2004. Supporters of the measure had hoped it would forestall staff layoffs and reduced hours.37
F53
Libraries in 41 states have absorbed more than $50 million in funding cuts last year. At least 10 cities have considered closures.38
F54
At the Santa Cruz City-County Library System JPA Board meeting on May 2, 2005, a proposal was put forth to close the Felton branch to reduce the upcoming fiscal year 2005-06 budget shortfall of $173,000 by $156,355.39 The community strongly opposed the closing, and the JPA Board voted to keep the branch open. Conclusions Library Administration

Recommendations 10