Saving the Branches May Kill the Tree The Fate of the Santa Cruz City/County Public Libraries

Including the three new libraries described below, the Master Plan calls for the construction of over 34,000 square feet of library space over the next several years. • Capitola was without a library from the mid-1970’s, when the original library was closed due to Proposition 13 cutbacks, until 1999, after the passage of the Measure B sales tax for the libraries. The current library is considered an interim library; it’s about 4,300 square feet and is not a permanent building but rather six portable structures tied together by the roof and floor. In 1987 Capitola signed a redevelopment agreement with the County that obligates the city to begin construction by 2018 of a 7,000 square foot facility that the SCPL would operate. Response: Joint Powers Authority Board – PARTIALLY AGREE The Capitola agreement was first signed in 1984. Saving the Branches May Kill the Tree ∫ 147 Response: Santa Cruz City/County Public Libraries – PARTIALLY AGREE The Capitola agreement was first signed in 1974. • The Felton library is a 1,250 square foot deconsecrated church. There is no disabled access, staff workspace, or storage area. There is only street parking. The entrance is up two flights of hillside stairs, making access difficult for parents with young children and seniors. There is little space for comfortable seating or study carrels. Public school class visits are not possible due to the small space. The collection is small, crowded, and inadequate. Nevertheless, the Felton library has a community of fierce supporters. Due to the gross inadequacies of the facility the JPB adopted a resolution in April 2008 identifying the Felton branch as the SCPL’s highest capital project priority, planning an 8,800 square foot facility for the area population of 16,000. However, despite a bequest of $146,000 and the donation of the land for the library, it is estimated that another $5.5 million might be needed to actually build the library. Response: Joint Powers Authority Board – PARTIALLY DISAGREE The area population that will be served by the new Felton Branch is 30,000. This includes all of San Lorenzo Valley and parts of Bonny Doon. There has been no official cost estimate for construction. Response: Santa Cruz City/County Public Libraries – PARTIALLY AGREE We have done a bit of “remodeling” and opened up space. The collections are not crowded anymore. It is also not inadequate for the size building it is and patrons have the system collection at their fingertips. There are book discussion groups and story times that do meet in this facility. Class visits might be possible depending on the size of the class. • Scotts Valley has had a library since 1953. The branch currently occupies 5,300 square feet rented in a shopping center. However, within the next year the library will be moving to a space of about 12,500 square feet in a remodeled building the city of Scotts Valley has purchased through a redevelopment agreement with the County. The Scotts Valley chapter of the Friends of the Library has launched an ambitious campaign to raise $250,000 to outfit the library interior. Response: Joint Powers Authority Board – PARTIALLY DISAGREE The new library will be 13,150 square feet. The base bid will cover a great deal of the interior. The Scotts Valley Redevelopment Agency is covering the new costs of the exterior and interior of the new library except for a fireplace/community art book wall project, media wall and other “extras” being funded by groups such as the Scotts Valley Chapter of the Friends of the Library. Response: Santa Cruz City/County Public Libraries – PARTIALLY DISAGREE The new library is actually 13,150 square feet. The base bid will cover a great deal of the interior and is paid for by The Scotts Valley Redevelopment Agency. The Scotts Valley Chapter of the Friends is fundraising for additional items.

In addition to the capital improvements described in F1 above, there are the routine maintenance and extraordinary repairs required by the library facilities and vehicles. In just the last few months, the library staff had to deal with: 148 ∫ Santa Cruz County Grand Jury Final Report 2009-2010 • a leaky roof affecting a light panel in Capitola, which caused the staff to delay opening the library for the day because of safety concerns • cleanliness and plumbing problems in Branciforte and Capitola • a T1 data line in Capitola malfunctioning for three days, resulting in 42 crates and 6 book trucks of materials needing to be transported to Live Oak for processing • lights and alarms causing problems in Live Oak from October 2009 to January 2010 • the need to install an underfloor water detection system at Live Oak • the heating/air conditioning system in Live Oak is a perpetual problem • irrigation problems at Live Oak that have resulted in high water bills • a leaky window and graffiti in Garfield Park • the bookmobile out of service twice in two months because of transmission problems • electric bills for headquarters that are unexpectedly high No Response Required

The community of La Selva Beach, unhappy with the local branch schedule and concerned that the SCPL’s financial problems might trigger the decision to close the branch altogether, proposed that its Friends chapter might fund the purchase of self checkout equipment and supply volunteers who, after training, would supplement the staff and allow the library to be open more hours. While library policy requires at least two employees to staff any open library, the hope was that administration would agree that one employee, self checkout, and a volunteer might be adequate. Administration did agree and this proposal is under development; union agreement is necessary for implementation. Response: Joint Powers Authority Board – PARTIALLY AGREE The pilot program has been launched as of July 2010. La Selva Branch is now operating 14 hours a week with one SCPL employee and one volunteer provided by the La Selva Beach Chapter of the Friends of the Library. Response: Santa Cruz City/County Public Libraries – PARTIALLY AGREE The Santa Cruz Public Library Friends funded self check machines for the entire system not the local chapter. The only reason La Selva can operate with one staff and one volunteer is because volume of circulation is so low that only one staff member is needed. The volunteer is there for “security” purposes, not to provide direct public service. The Technology Library staff have stated that the SCPL is the last in the country to use the current Integrated Library System (ILS). It was installed in the 1980’s and updated/upgraded twice in the 1990’s. It is an outdated but heavily customized system on dedicated, obsolete hardware (with no support from the manufacturer at this point in time), with only a single employee with the expertise to maintain the system. This means there are multiple points of failure: hardware, software, and personnel.

Technical services staff state that library technology has been under-funded for several years, perhaps by as much as $500,000 to $700,000 per year. Response: Joint Powers Authority Board – DISAGREE Saving the Branches May Kill the Tree ∫ 149 Without specific information regarding the time period and the specific items underfunded, the LJPB cannot comment on the accuracy of this finding. Response: Santa Cruz City/County Public Libraries – PARTIALLY DISAGREE First, I believe this is meant to be Library Information Technology staff not Technical Services. They are two different divisions. I am not sure where that number comes from. We estimate that $100,000 is needed for PC replacement each year. A new ILS is in the neighborhood of $200,000 but is a one time expenditure with annual maintenance fees of about $30,000.

A new ILS, which could cost upwards of $200,000, would enable several improvements in library operations, such as the adoption of the floating collection, now considered a library “best practice”; computer-printed hold slips (library staff handwrite over 200,000 hold slips annually); and automated check in. Response: Joint Powers Authority Board – PARTIALLY DISAGREE Automated check in is not dependent on a new ILS. Response: Santa Cruz City/County Public Libraries – PARTIALLY DISAGREE Floating collections are not considered a best practice. It is something that works in some systems but is not at the level of a best practice. It does hold some promise for a system of our size, however. Automated check in is not dependent on a new ILS.

Only three libraries in the SCPL system currently offer self checkout: Aptos, Live Oak, and Scotts Valley. Sadly, very few people are using it, just about 8 % of patrons compared to 60% in Watsonville and Los Gatos and about 95% at the San Jose libraries. Efforts to convert to self checkout have been handicapped by the need to add barcode labels to outside book covers, a time-consuming and costly exercise; labels originally were put inside the books. Response: Joint Powers Authority Board – PARTIALLY DISAGREE Live Oak self check is currently at 84%. A rollout plan is underway whereby all branches will be using self checkout by December 2010. Rebarcoding is taking place at each branch prior to implementation of self check. Response: Santa Cruz City/County Public Libraries – PARTIALLY DISAGREE Live Oak has achieved 84% self checkout since it was instituted in a serious way in April 2010. There is a rollout plan whereby all branches will be using self checkout by December 2010. Previous attempts to do so had many barriers which are being corrected. Rebarcoding is happening just before each library goes to self check. We are using ARRA paid workers through September and then volunteers. I question the 95% figure. The industry benchmark is 80%. San Jose does have the advantage of an aggressive building program which enabled them to build branches with self checkout integrated into the design. Scotts Valley will be built to this standard.

The SCPL has about 150 computers in the ten branches for public use. This number of computers compares favorably with comparable library systems. The technology 150 ∫ Santa Cruz County Grand Jury Final Report 2009-2010 department is in the process of slowly replacing old equipment with newer refurbished terminals with multimedia capability. Response: Santa Cruz City/County Public Libraries – AGREE

The new Scotts Valley library is anticipated to be the first “real 21st century” library in the SCPL system. There will be lots of computers, with both wired and wireless connection to the internet, lots of bandwidth, and fiber. There will be two large LCD presentation screens and projection equipment. There will be single point of service and four self checkout stations, and space for automated materials handling equipment, although this equipment will not be purchased at this time. Response: Santa Cruz City/County Public Libraries – PARTIALLY DISAGREE All our branches offer wireless capabilities. The LCD screens and projection equipment are dependent on Scotts Valley Friends fund raising. Volunteers Library volunteers are members of the Friends of the Santa Cruz Public Libraries, and in 2008/09 560 volunteers worked over 14,000 hours in the libraries, equivalent to seven FTE. They also gave the libraries more than $200,000 last Friends’ fiscal year and have pledged another $52,000 to buy new self checkout machines. There are branch-specific Friends chapters in Boulder Creek, Felton, La Selva Beach, and Scotts Valley. The Scotts Valley chapter has just begun a capital campaign to raise $250,000 for equipment and furnishings for the new Scotts Valley library, and the parent chapter is beginning an ambitious campaign to raise funds for technology improvements and other needs of the library system. The money will be useful, but library supporters wonder why volunteers cannot be used to keep the libraries open more hours. It appears from comments in the press and on the internet that there would be no shortage of people willing to volunteer their time and efforts to keep the library doors open.

It is library policy that a volunteer cannot check out books to patrons. Government Code Section 6267 is cited as the basis for this policy. However, this code does not explicitly exclude volunteers from checking out books for patrons, nor is there case law which would prohibit their doing so. Code Section 6267 reads: “All registration and circulation records of any library which is in whole or in part supported by public funds shall remain confidential and shall not be disclosed to any person, local agency, or state agency except as follows: (a) By a person acting within the scope of his or her duties within the administration of the library. (b) By a person authorized, in writing, by the individual to whom the records pertain, to inspect the records. (c) By order of the appropriate superior court. Response: Santa Cruz City/County Public Libraries – PARTIALLY AGREE The confidentiality of library patrons is legally protected by the State of California. Staff undergoes background and fingerprint checks before being hired. This is an issue of public Saving the Branches May Kill the Tree ∫ 151 trust and allowing volunteers to access information considered confidential by our patrons and protected thereby by law is an area of great concern. Checking out materials is considered a core and basic service. Libraries, in general, do not entrust this type of service to volunteers. Signing a confidentially agreement is a weak form of protection since there are no sanctions to be taken against a volunteer who violates patron confidentiality. Paid employees risk their livelihood and references to secure another job; volunteers can only be asked to not volunteer anymore.

The SCPL does not have a volunteer organization under the library administration. Instead, volunteers are part of the Friends group, which has a paid member who works 20 hours a week interviewing prospective volunteers and matching them with appropriate library tasks. Volunteers do fill out applications and sign confidentiality agreements. Response: Santa Cruz City/County Public Libraries – PARTIALLY DISAGREE Not all volunteers sign confidentiality agreements.

With the current procedures for recruitment and training, volunteers suffer a bad reputation with library personnel. Some staff consider volunteers to be unreliable, prone to mistakes, or lax in fulfilling their obligations. Nevertheless, library administration states that the more than 14,000 hours of work accomplished by volunteers this past year were greatly appreciated. Response: Santa Cruz City/County Public Libraries – PARTIALLY DISAGREE This is too strongly stated. Volunteers do not have a bad reputation with staff. Staff is too taxed to take on any additional responsibility that using volunteers more than they already do would require. There is also very little support available for when a volunteer isn’t working out.

It is library policy that volunteers can only assist staff; they cannot replace staff. A volunteer can perform one task but not all tasks that constitute a job description. This reflects the library system’s agreement with the unions. Response: Santa Cruz City/County Public Libraries –AGREE This is also library and city policy on the role of volunteers. It is a past practice with the unions more than a formal agreement.

Volunteers need to be trained and they need to be supervised; these needs require staff time and attention, and consequently there are costs associated with the use of volunteers. Response: Santa Cruz City/County Public Libraries –AGREE

The Friends recently expanded the list of current volunteer needs posted on its web site. It does not include checking out books, however, which limits the possibility of using volunteers to keep the libraries open more hours. Response: Santa Cruz City/County Public Libraries – PARTIALLY DISAGREE Thinking that using volunteers to check out is the only way they can help libraries stay open more hours is way too narrow. There are many functions that volunteers can help 152 ∫ Santa Cruz County Grand Jury Final Report 2009-2010 with that might eventually result in being able to be open more hours. We need staff devoted to volunteer coordination as stated in Finding 13 to explore this. Until that happens, even if we were to use volunteers to check out books, we would not be able to do so without staff to manage the volunteer function. Library Services and the Strategic Plan In December 2008, the past library director retired after 25 years of service. There was an interim director for a brief time while the JPB and the City of Santa Cruz recruited and hired a new director, who joined the SCPL system in July 2009. Under new leadership, the SCPL undertook an ambitious series of town hall meetings and focus group sessions with the goal of developing a community-based plan for the next five years. The town hall meetings were centered on the library branches. The focus groups were of assorted demographics (seniors, Latinos, business leaders, teens, educators, the homeless, a lady’s club, et cetera). The data collected through these activities was supplemented with information from about 2,500 surveys gathered over the internet and in person at grocery stores and farmers markets in the county. The result is the 3-5 Year Strategic Plan, 2010-2015, presented to the JPB and the public on Monday, April 19, 2010. The strategic plan that was developed is not intended to solve current budget problems but rather to provide the system with a focused future.

What was discovered through the planning process was not a surprise: library patrons use their local libraries, but they also enjoy visiting other libraries in the system. This is supported by the data in the chart that follows on illustrating where people from each community check out their library materials. These percentages are based on numbers from the 2007/08 fiscal year, before the serious reduction in open hours. The first, second, and third most frequently used libraries (in terms of circulation) for each residential area are color-coded. You can see that patrons from all communities in the county check out books from the Central library, with the Aptos and Scotts Valley branches being second and third most popular. Response: Santa Cruz City/County Public Libraries –AGREE

There was considerable consistency in library service priorities, with reading, viewing, and listening for pleasure; lifelong learning; creating young readers; and connecting with the online world being generally the highest ranked. One notable contrast was the attitude of some among the more mature population who favor local branches and believe libraries must be about books and personal service, while others among the younger population suggest that there will be fewer branches in the future and libraries will be less about books and more about technology. Everyone, regardless of age, wants the libraries open many more hours and on regular schedules. Response: Santa Cruz City/County Public Libraries –AGREE Saving the Branches May Kill the Tree ∫ 153 8002-7002 hcnarB hcaE ta noitacoL emoH reworroB yb stuO kcehC fo egatnecreP 51F hcnarB yrarbiL avleS aL dleifraG redluoB aO eviL notleF lartneC alotipaC etroficnarB sotpA hcaeB kraP keerC %4 %2 %0 %0 %21 %5 %2 %1 %37 sotpA %3 %2 %0 %0 %73 %8 %1 %2 %74 samorA %3 %0 %0 %12 %02 %1 %2 %9 %2 dnomoL neB %1 %0 %0 %3 %41 %0 %1 %86 %1 keerC redluoB %2 %0 %1 %8 %52 %1 %1 %73 %01 eladkoorB %31 %1 %1 %0 %61 %15 %2 %0 %41 alotipaC %3 %1 %0 %0 %21 %6 %2 %0 %57 sotilarroC %1 %0 %7 %1 %38 %1 %3 %0 %2 tropnevaD %2 %0 %0 %63 %42 %1 %2 %2 %1 notleF %1 %1 %51 %1 %04 %2 %2 %0 %73 modeerF %1 %74 %0 %0 %11 %2 %4 %0 %33 hcaeB avleS aL %35 %0 %0 %0 %32 %11 %7 %0 %3 kaO eviL %1 %0 %0 %71 %21 %1 %4 %1 %2 nomreH .tM %2 %3 %0 %0 %8 %3 %1 %0 %28 raM leD oiR %4 %0 %01 %1 %36 %2 %61 %0 %2 ytiC zurC atnaS %7 %0 %3 %1 %04 %11 %81 %0 %4 tuO zurC atnaS %1 %0 %0 %1 %21 %1 %1 %0 %1 yellaV sttocS %1 %0 %0 %0 %5 %3 %1 %0 %88 ffilcaeS %9 %1 %1 %0 %02 %93 %3 %0 %62 leuqoS %3 %0 %1 %2 %63 %6 %6 %0 %4 procninU ytnuoC CS %4 %9 %1 %0 %72 %7 %4 %0 %54 ytiC ellivnostaW %7 %9 %0 %1 %54 %8 %31 %0 %41 tuO ellivnostaW %4 %1 %4 %6 %25 %5 %3 %1 %11 aerA fo tuO noitacoL emoH sttocS k yellaV %1 %0 %14 %21 %61 %2 %2 %2 %13 %0 %1 %1 %16 %1 %2 %61 %28 %1 %1 %24 %2 %4 %41 %31 %01 %1 %4 %3 %43 %8 %8 %4 %51 slatoT noitacol emoh rep stuokcehc fo rebmun tsetaerG noitacol emoh rep stuokcehc fo rebmun ni dnoceS noitacol emoh rep stuokcehc fo rebmun ni drihT morf elpoep erehw setartsulli trahc sihT .metsys eht ni seirarbil rehto gnitisiv yojne osla yeht tub ,seirarbil lacol rieht esu snortap yrarbiL smeti rehto dna skoob rieht fo tnecrep 37 tuo kcehc sotpA ni gnivil elpoep ,ecnatsni roF .slairetam rieht tuo kcehc ytinummoc hcae no desab era segatnecrep esehT .yrarbil alotipaC eht morf tnecrep 5 dna yrarbil lartneC eht morf tnecrep 21 ,yrarbil sotpA eht morf .sruoh yrarbil ni snoitcuder suoires eht erofeb ,raey lacsif 8002/7002 eht morf srebmun 154 ∫ Santa Cruz County Grand Jury Final Report 2009-2010

One important part of the Strategic Plan is the section entitled “Change for the Future,” a description of five current trends in public library services that the SCPL has identified and committed to in the coming years as it pursues its vision of Transforming lives and supporting communities. Succinctly, the five trends are: 1. Patrons get service at the level they want – more self-service in checking out materials, placing and picking up holds, editing own accounts, paying fines; and single point of service, 2. Rebranding and marketing – establishing the library as a relevant resource through evolving services and better marketing of those services, 3. Local focus – providing local content that is unavailable elsewhere and taking library services outside into the community, 4. Remote delivery of services – associated with self-service; downloadable materials, e- books, podcasts; online payment of fees, and 5. User involvement – use of social media like Twitter, Facebook, and Wikis. Response: Joint Powers Authority Board – AGREE Response: Santa Cruz City/County Public Libraries –AGREE

Despite the budget problems, the SCPL offers an amazing range of outreach programs and in-house events. Through the efforts of library employees and Friends volunteers, there are programs for special populations like toddlers and young readers, students of all levels, teens, film and gaming enthusiasts, the elderly, the sight impaired, and the developmentally disabled. There are special holiday events, including pumpkin carving and gingerbread workshops. Programs and Partnerships was begun in September 2009, involving local businesses in library activities. It includes the “Book Wish List” being supported by local bookstores. Other businesses have held fundraisers, and still others have partnered with the library in offering parents and children in-store workshops and story-times. Response: Santa Cruz City/County Public Libraries –AGREE However, the Programs and Partnerships Division was established for more than just involving local businesses. It was established to bring under one roof all library programming and various partnerships with all sectors of the community. The Budget Funding for the libraries comes from five sources: • county property taxes and Santa Cruz and Watsonville city general funds • the ¼ cent sales tax approved by voters first in 1996 and then again in 2008 • library fees and fines • a State of California Public Library Fund grant • income from bequests and trusts The sales tax and monies from the city general funds are allocated to the SCPL and the Watsonville Library each year by a Library Financing Authority; the funds are divided using a population-based formula. The city of Santa Cruz provides administrative, financial, human resources, and legal services to the SCPL; they charge the library system a flat 5.5% of its total revenues for these services. Saving the Branches May Kill the Tree ∫ 155

In March 2009, after two years of generous sales tax revenues, the SCPL had no cash reserves. In April 2009, the JPB set guidelines for the FY 2009/10 budget that included establishing and maintaining ongoing cash reserves of at least 5% of its annual budget and dedicating at least 8% of its operating budget to books and media. These goals were not met in the FY 2009/10 budget, and they are not being met in the budget proposed for FY 2010/11. Response: City of Santa Cruz Director of Finance – AGREE Response: Joint Powers Authority Board – AGREE Sales taxes were projected to increase FY08/09 from FY07/08 by $27,000. In reality, they declined by $344,000. The 8% for materials was established in the Facilities Master Plan adopted in 2008 not in FY 2009/10 as stated above. Response: Santa Cruz City/County Public Libraries –AGREE Sales taxes were projected to[sic] in FY08/09 from FY07/08 by $27,000. In reality, they declined by $344,000. The 8% for materials was established in the Facilities Master Plan adopted in 2008.

Over the last decade, prior and present library administrators have proposed or recommended closing from one to six branches to benefit the balance of the library system. However, in May 2009, the JPB directed library management to develop a balanced budget for FY 2009/10 that did not close any branches. They provided the same direction this April while facing even greater challenges to the system, essentially “kicking the can down the street a bit farther,” in the words of one board member. Response: Joint Powers Authority Board – PARTIALLY AGREE In April 2010 the JPB was presented with several options that all achieved the same goal- a balanced budget for 10/11. They selected the one that reduced hours at all the branches. Response: Santa Cruz City/County Public Libraries –PARTIALLY AGREE In April 2010 the JPB was presented with several options that all achieved the same goal- a balanced budget for 10/11. They selected the one that did not call for closing any facilities.

The SCPL may be able to balance the budget through deep cuts in personnel and services, but there is a cash-flow problem. The City of Santa Cruz loans the library the cash for payroll and other payables; it covers the actual cash deficit between the time expenses are paid and revenues are received. Currently this loan balance averages between $1 million and $1.4 million. The City charges interest at portfolio rates (in April 2010, about 1.4%), but beginning with the 2011/12 fiscal year the interest will rise to portfolio rates plus 2% (about 3.4% if the portfolio rate was still 1.4%); in the meantime the City will cap the loan at $1 million. The additional interest will add to the cost of operating the library system, and staff stated that, with a cap, some bills will not be paid in a timely manner and additional staff time and effort will be required to prioritize payments. 156 ∫ Santa Cruz County Grand Jury Final Report 2009-2010 Response: City of Santa Cruz Director of Finance – PARTIALLY AGREE The average loan balance has not averaged between $1 million and $1.4 million. The loan balance averaged approximately $500,000 in fiscal year 2009 and approximately $400,000 in fiscal year 2010. The loan balance has decreased over the last two fiscal years and there has been no need for a loan during the last 3 months of fiscal year 2010. Response: Joint Powers Authority Board – PARTIALLY DISAGREE The loan balance does not average between $1-1.4 million. These are maximum amounts reached on several days last year not on a regular basis. The Library has also factored into its 5 year projections re-establishing the reserve to handle the cash flow issue. Given the current situation (ending FY0910 in the black) we do not anticipate exceeding the limit. Response: Santa Cruz City/County Public Libraries –PARTIALLY DISAGREE The loan balance does not average between $1-1.4 million. These are maximum amounts reached on several days last year not on a regular basis. The Library has also factored into its 5 year projections re-establishing the reserve to handle the cash flow issue. The line about with a cap, some bills MAY not be paid in a timely manner rather than will. Given the current situation (ending FY0910 in the black) we do not anticipate this issue occurring.

The SCPL has three loans that it must repay, with interest, and substantive rent for headquarters: • First, there is the working capital loan mentioned above, the advance from the City of Santa Cruz to cover the cash requirements on a day-by-day basis. This loan will be outstanding until the SCPL develops the reserves to manage its cash flow. Response: Joint Powers Authority Board – PARTIALLY DISAGREE This is a cash flow loan that is repaid as soon as the monthly payment is received from the County. Response: Santa Cruz City/County Public Libraries –PARTIALLY DISAGREE This is a cash flow loan that is repaid as soon as the monthly payment is received from the County. • Second, there is a loan associated with a Santa Cruz County overpayment, a distribution error discovered in 2005. From August 2005 through August 2013, the SCPL must pay annual principal of $40,293 plus variable rate interest. Response: Joint Powers Authority Board – AGREE Response: Santa Cruz City/County Public Libraries – AGREE • Third, there is a loan from the city of Santa Cruz for improvements to the new headquarters building. Interest is 5%. In September 2008, the principal was $467,303; the current loan balance is about $430,150. The annual payment is $60,518, and this loan will be paid off in 2018. Saving the Branches May Kill the Tree ∫ 157 Response: Joint Powers Authority Board – AGREE Response: Santa Cruz City/County Public Libraries – AGREE • The City of Santa Cruz purchased the building at 117 Union Street in Santa Cruz for use as library headquarters, to house administrative and technical services and outreach. The facility is shared with the Water Department, and building expenses are allocated to each according to the square footage occupied. The library’s portion of the annual rent is $287,189, until 2037 when the City’s loan for the building purchase will be paid in full. Response: Joint Powers Authority Board – AGREE However, it is important to note that the Library was paying $21.89 per square foot for rent and utilities for its Headquarters building on Pacific Avenue and now pays $20.93 per square foot for a building that is being purchased not rented. Response: Santa Cruz City/County Public Libraries – AGREE However, it is important to note that the Library was paying $21.89 per square foot for rent and utilities for its Headquarters building on Pacific Avenue and now pays $20.93 per square foot for a building that is being purchased not rented. Complete Finding Response: City of Santa Cruz Director of Finance – PARTIALLY AGREE The amount of the annual payment to the City of Santa Cruz for use of the building at 117 Union Street is not $287,189; rather the amount varies each year between fiscal year 2010 and fiscal year 2037, from a low of $283,147 in fiscal year 2028 to a high of $312,516 in fiscal year 2035. After 2037, no payments are due under the existing lease.

While the library staff tabulates a wealth of data about the Santa Cruz community’s library use, (visits per capita, books and materials checked out per capita and per active member; busyness and circulation and visits per open hour, et cetera), there are no established cost accounting measures to gauge the cost of operating the individual branches or the cost of specific library services. The library director prepared a one-time memo detailing the monthly and annual costs for the bookmobile in March 2010 upon request from a member of the JPB. Response: City of Santa Cruz Director of Finance – AGREE Response: Joint Powers Authority Board – AGREE Response: Santa Cruz City/County Public Libraries – AGREE This statement is, however, very misleading. Establishing costs per individual branch is very complicated. Fixed costs are easy to calculate and have been. There are variable costs that are much harder to calculate. We would need to come up with a chargeback system for all administrative functions- payroll, computer support, courier service, branch supervision, programming support, acquisitions/cataloging and processing etc. This is further complicated since the smaller branches have been sharing staff with the larger branches so allocating staff time can get very fuzzy. There has really been no value in allocating costs this way since revenues are not branch specific. I am not sure what 158 ∫ Santa Cruz County Grand Jury Final Report 2009-2010 specific library services are being referred to in terms of cost. Once again, there has not been any value perceived in determining the cost of a service such as materials acquisition. It isn’t like we will stop doing it based on cost. We are always looking at ways to be more efficient but quantifying that in terms of service provided is not an appropriate model for this type of organization. The Library is not a business and cannot be run like one.

Currently there are no reserves for technology repairs or improvements or for replacing the several SCPL vehicles, including the bookmobile. There are no reserves to finance facility development. There are no emergency reserves. Response: City of Santa Cruz Director of Finance – AGREE Response: Joint Powers Authority Board – AGREE Response: Santa Cruz City/County Public Libraries – AGREE

In FY 2008/09, personnel costs accounted for 73.6% of the budget, while books and materials accounted for 6.3% and technology accounted for 0.8%. Personnel costs are projected to consume 80% of the budget within a few years. While employees have been furloughed about 10% of the time this year and the furloughs will continue into the next fiscal year, retirement programs through the California Public Employees’ Retirement System (CalPERS) have not been fully funded and health insurance rates are expected to rise significantly. Response: City of Santa Cruz Director of Finance – AGREE Response: Joint Powers Authority Board – PARTIALLY AGREE It isn’t really correct to say that CalPERS has not been fully funded. During the period of the furlough, city and employees have been paying in based on their reduced pay. When current employees retire, the calculation will be made on their non-furlough pay which is higher. There is a slight discrepancy which is why we have decided not to continue the furlough beyond 2 years. Response: Santa Cruz City/County Public Libraries – PARTIALLY AGREE It isn’t really correct to say that CalPERS has not been fully funded. During the period of the furlough, city and employees have been paying in based on their reduced pay. When current employees retire, the calculation will be made on their non-furlough pay which is higher. There is a slight discrepancy which is why we have decided not to continue the furlough beyond 2 years but this amount has been declared not significant enough to be concerned about at this time.

Also in FY 2008/09, the population served per FTE was lower than the State mean (1,735 versus 3,094) and lower than comparable counties’ figures. Expenses per capita were significantly higher than the State mean ($61.90 versus $34.69) and comparable counties’ numbers. Library administration suggested this was “probably because of the relatively large number of branches we have for the population.” The abundance of branches and the reported library policy that at least two employees are required to staff any open library contribute to these outsized numbers. Saving the Branches May Kill the Tree ∫ 159 Population Served Per FTE Staff Total Operating Expenditure Per Capita 3500 $70.00 3000 $60.00 2500 $50.00 2000 $40.00 1500 $30.00 1000 $20.00 500 $10.00 0 $- California Santa Cruz San Luis Santa Barbara Monterey California Santa Cruz San Luis Santa Barbara Monterey Average County Obispo County Average County Obispo County County County Response: Joint Powers Authority Board – PARTIALLY DISAGREE There is insufficient information to verify whether the relatively low population to FTE and the expenses per capita is caused by the relatively large number of branches nor does it preclude that there may be other contributing factors. Without studying all the factors simply closing branches will not achieve the expected goals. The JPB task force will be studying this issue. Response: Santa Cruz City/County Public Libraries – PARTIALLY DISAGREE It was suggested that the number of branches is probably high given the small size of the county. Expenses per capita are also higher because Santa Cruz is an expensive place to live. Staff in Santa Cruz do not earn as much as their colleagues over the hill. Our problem is more that the total square footage in our branches is inadequate for the size of the population. A staffing level of two is considered minimum for personal security reasons. We have never stated that one of those two cannot be a volunteer as long as the workload and assigned tasks are appropriate to the staffing configuration. In general, there is a certain economy of scale that can be reached by having fewer but larger branches. The down side is that neighborhoods lose branches that help identify that neighborhood and serve as cohesion for it as well.

Santa Cruz County has more branches, or outlets, per square mile than the comparable counties of Monterey, San Luis Obispo, and Santa Barbara. With a total area of 436 square miles in the county, the service area per outlet averages about 40 square miles. Service Area per County Population Area in Square Miles Outlet in Square Miles Santa Cruz 209,332 436 40 San Luis Obispo 240,480 3,305 207 Santa Barbara 227,349 1,164 129 Monterey 230,478 3,125 156 160 ∫ Santa Cruz County Grand Jury Final Report 2009-2010 Response: Joint Powers Authority Board – PARTIALLY AGREE This comparison is questionable because it does not factor in the geographical differences among these counties. Also, it doesn’t reflect the library square footage per capita or the library square footage per square mile. Counties with large rural areas will have more square miles per branch. Response: Santa Cruz City/County Public Libraries – AGREE See comment in F26. Conclusions C1. The mission of the Santa Cruz Public Libraries is to provide materials and services which help community residents meet their personal, educational, cultural, and professional information needs. This is the current mission statement for the SCPL. Although library enthusiasts from around the county participated in the strategic planning process and considered what the library might look like in 2020, it’s very hard to know just where technology will take us – and our libraries – in the next ten years. In fact, it is difficult looking just a couple of years down the road. The library system will need a solid financial foundation to enable it to evolve as necessary to meet the needs of the community in this era of swiftly-changing technology. C2. There is not enough money in our current economic climate for everything the JPB and the SCPL needs to do today: • there are three loans to pay off and significant rent for the headquarters building • there are plans to build new libraries in Scotts Valley, Capitola, and Felton; in addition to building and equipment costs, there will be moving expenses and additional ongoing staff and utility expenditures because of the increased square footage • there is routine maintenance and emergency repairs for the ten branches and headquarters • there are major technology improvements that must be funded • there is equipment, including vehicles, that need to be maintained in the short term and that will need to be replaced in the near future • there must be funding to build the collection • there must be savings to build reserves • there are personnel costs that are increasing from year to year while revenues are decreasing C3. A dramatic shift in library priorities and operations is necessary to create a balanced budget while allocating the funds necessary to buy the technology that will allow the library staff to improve productivity and to create a library that will continue to meet the needs of the community as our future is increasingly shaped by technology. Unfortunately, the JPB has been unwilling year after year to make the decisions that are necessary to provide an adequate and stable financial foundation for the Santa Cruz library system. The board, with Saving the Branches May Kill the Tree ∫ 161 elected representatives of the cities and county constituting a majority, seems to lack the political will to make the tough decisions that might be unpopular with constituents. C4. Library administration and staff have failed to expand the use of volunteers to provide more regular open hours for patrons.