Sacramento County Grand Jury • 2007-2008 • Agency Response
Response to: Sacramento Fire Department

Sacramento Public Library Authority’s Response to Grand Jury Report Entitled “the Business of Books” August 6, 2008

Published: August 06, 2008 21 pages
Ver PDF original

Note: Missing finding numbers detected: F2, F4, F5, F6, F7, F9, F12, F13

Findings and Recommendations 6 findings

F1 Page 2
The Joint Powers Agreement (JP A) incorrectly vests excessive discretion for Library operations and issues in one position, that of Library Director. Board’s Response. We disagree with this finding. The Joint Exercise of Powers Agreement, as amended and effective July 1, 2007, establishes a “Governing Board” and the Governing Board appoints the Library Director who, pursuant to the Joint Exercise of Powers Agreement (“JPA”) is the chief executive officer of the Authority and is responsible for the administration of the Authority. (JPA, section 8.) It is not unusual in California that the governing board or legislative body of a local public entity appoints no more than two persons – its manager and its attorney. For example, although county free libraries are under the general supervision of the county board of supervisors and the State Librarian, the supervisors must appoint a qualified county librarian with a demonstrated knowledge of the principles and practices of public administration and who is responsible for managing the library subject to the general rules established by the supervisors. (Education Code, sections 19140, 19160, 19167.) The county librarian reports annually to the board of supervisors, and he or she must authorize and approve all claims against the county free library fund. (Education Code, sections 19169, 19176.) County librarians meet annually with the State Librarian to discuss questions pertaining to the supervision and administration of the county free libraries. (Education Code, section 19168.) There are five other public libraries in California that are joint powers authorities (Belvedere-Tiburon, San Mateo, Santa Clara, Santa Cruz and Sonoma). The boards of all five of these joint powers authorities appoint the library director or chief executive officer and an attorney, just as our Board does. This organizational structure is not unique to libraries. The great majority of California’s 480 cities have adopted so-called “Council/Manager” forms of government pursuant to Government Code, section 34851 et seq.; in those cities, the city manager is hired by the Council and reports directly to the Council. All other employees are retained by the city manager and report to the Council through the City Manager, with the exception of the city attorney, who is also appointed directly by the council (or, in a few cities, elected). Finally, many special districts in California have a similar government structure. Regional parks districts appoint a general manager (Public Resources Code, sections 5538, 5549) as do transit districts (Public Utilities Code, sections 102000-102700 [Sacramento Regional Transit District]; sections 24926-24929 [Alameda/Contra Costa Transit District]; sections 28830-28836 [Bay Area Rapid Transit District]; sections 30330-30336 [Southern California Rapid Transit District]), public utility districts (Public Utilities Code, sections 11501 et seq. [Sacramento Municipal Utility District] and community services districts (Government Code, section 61050, section 61051, including the Rancho Murieta Community Services District). Grand Jury’s
Related Recommendations (2)
R1A
Page 3
The Board does not have the power to amend the joint powers agreement. The Sacramento Public Library Authority is a “joint powers authority.” The joint powers authority was created when Sacramento County and six cities in the County entered into a “joint exercise of powers agreement” to create the Sacramento Public Library Authority. The “joint exercise of powers agreement” was approved by the Board of Supervisors of the County and the city councils of the six cities. The “joint exercise of powers agreement” establishes a “Governing Board” and the Governing Board appoints the Library Director who, pursuant to the Joint Exercise of Powers Agreement (“JPA”) is the chief executive officer of the Authority and is responsible for the administration of the Authority. (JPA, section 8.) The Governing Board cannot amend the JPA, as is recommended. Only the parties to the 2007 JPA can amend it. The JPA requires that the Library Director meet the qualifications of a county librarian provided in Education Code, section 19142, which requires graduation from a graduate library school, among other things. Accordingly, the position description for Library Director requires that applicants have a master’s degree in Library Science and at least eight years of professional public library administration. In addition, it requires that applicants have demonstrated skills in managing financial responsibilities of an organization. Applicants should also possess “well-grounded business acumen” and be able to prepare and administer the Library’s budget. On May 2, 2008, the Authority issued a “request for proposals” for a consultant to conduct a performance audit. At its June 16, 2008, the Board selected MGT of America to conduct the performance audit. The scope of work for the audit includes interviews with focus groups and others to identify key issues and expectations for the Library; a review of the Library’s departments, including Facilities, Finance, Human Resources, and Information Technology; a review of work processes and products and established policies and procedures; a review of staffing deficiencies or surpluses with recommendations for how to correct them; a review of state and national benchmarks for comparable libraries; and a comparison of each department’s cost of services to customer service output. The work will conclude with recommendations on how to improve efficiency and effectiveness of service with real, constructive solutions. The report is due to the Board by December, 2008. Following receipt of the performance audit, the Board will forward any recommendations contained in the audit regarding the powers and duties of the Library Director to the parties to the 2007 JPA (the County and six cities). Grand Jury’s Recommendation lB. Amend the position of Deputy Director for Public Services to create a position of Deputy Director, Library Services. Seek a person for this position with specific Library Science skills to oversee topical and program initiatives critical to a successful library program. This person should report to the redefined CEO. Board’s Response. The recommendation will not be implemented.
R1B
Page 4
Notwithstanding, following receipt of the performance audit which is due in December 2008, the Board will consider implementing any recommendations in the performance audit that relate to this position. Grand Jury’s
F3 Page 9
The JP A failed to create any system of independent checks and balances in the Library for the benefit of the Governing Board when considering issues and rendering decisions. Board’s Response. We disagree with this finding. Pursuant to the JPA, the Board appoints the Library Director and legal counsel. Inasmuch as the Library Director and Authority Counsel are independent of each other, the JPA does provide a person who can report directly to the Board if there is a concern regarding the conduct of the other. The JPA does not specifically provide for standing committees of the Board but clearly provides authority for the Board Chair to establish such committees. (JPA, section 4.) The Board Chair has appointed committees in the past. (See Response to
Related Recommendations (1)
R3
Page 10
The Governing Board should define specific measurable guidelines to operate the Library along established business principles to include: • Criteria for the safeguard and proper use of public funds • Management accountability and reporting systems • Efforts to recoup outstanding balances owing to the Library Board’s Response. The Board will implement
F8 Page 9
) As discussed in our response to
Related Recommendations (1)
R8
Page 15
The Governing Board should publish an annual report which shall include a budget summary, year-end accomplishments, and future plans. Board’s Response. This recommendation will be implemented. The Authority’s fiscal year is July 1 through June 30 and the Board must adopt a budget of July 1 each year. (2007 JPA, section 11.a.) The budget is adopted at a public meeting and any changes to it are made in public. The adopted budget includes information regarding plans for the fiscal year. The Board will publish an annual report, following the close of the 2008-09, 2009-10 and 2010-11 fiscal years and will then assess whether it should publish such reports in future years, given the Library’s resources.. Grand Jury’s
F10 Page 17
The Governing Board failed in its oversight of the Library, the Library Director, and the Library executive team pursuant to the obligations set forth in the Joint Powers Agreement of 1993, as amended in February, 2007. Board’s Response. The Board disagrees with
Related Recommendations (1)
R10
Page 18
The Governing Board should create its own oversight of Library operations by establishing stronger internal controls. Board’s Response. The Board will implement
F11 Page 18
An Accounting Policies and Procedures Manual was to have been implemented under the 2003 Financial Management System Assessment. Three Finance Officers later, this still has not occurred. Further, there is no complete personnel policies manual. Board’s Response. The Library has a number of internal policies and procedures, some adopted by the Board and some implemented at the staff level. Similarly, there are Board approved personnel policies and personnel policies implemented at the staff level. The Board agrees that there is no “Accounting Policies and Procedures Manual” and no manual that contains all personnel-related policies. Grand Jury’s
Related Recommendations (1)
R11
Page 18
The Governing Board should require complete and comprehensive policy and procedure manuals for both the Finance Department and for personnel practices. Board’s Response. The Board will implement
F14 Page 21
Procedures for cash management at Library branches are inconsistent. Some branches retain cash until it accumulates in an amount up to $2,000 before the cash is transferred to the Finance Department for accounting and deposit. No one has been assigned the responsibility of auditing branch library cash accounts. Board’s Response. The Board agrees with the first and second sentences of
Related Recommendations (1)
R14
Page 21
Establish standard procedures for all branches regarding cash management. Board’s Response. The Board will implement

Additional Recommendations 6

These recommendations are not explicitly linked to specific findings.