HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/15/2007 - RESOLUTION 2007-055 AUTHORIZING AN INTERIM INTERGO ITEM NUMBER: 27
AGENDA ITEM SUMMARY DATE: May 15, 2007
FORT COLLINS CITY COUNCIL STAFF: Marty Heffernan
SUBJECT
Resolution 2007-055 Authorizing an Interim Intergovernmental Agreement Between the Fort Collins
Regional Library District, the City of Fort Collins and Larimer County.
RECOMMENDATION
Staff recommends adoption of the Resolution.
FINANCIAL IMPACT
Under the interim intergovernmental agreement(IGA)the City will turn library operations over to
the District on January 1,2008. The District will reimburse the City for the cost of providing library
services in 2007 up to the amount of $3,851,153 and for service improvements or additions
requested by the Trustees. The City would continue to provide support services for library
operations for 2007 and the District will pay for those services, estimated to cost approximately
$500,000.
EXECUTIVE SUMMARY
Last November area voters approved the formation of the Fort Collins Regional Library District and
provided 3 mills of property tax to fund it. Pursuant to State law, on March 6, 2007 the Council
ratified seven candidates to serve as trustees on the governing board of the new District. The County
Commissioners also ratified these candidates at that time. The trustees met on March 7th and the
City provided them with a memorandum outlining the City's position on the various issues to be
addressed in the IGA. The trustees have been meeting regularly and have been diligently working
on the IGA and on a multitude of other matters needing their attention.
State library law calls for an IGA to be in place within 90 days of the appointment of the Board of
Trustees. 90 days does not provide sufficient time to resolve all the issues that must be addressed
in the IGA or sufficient time to craft an IGA that will successfully establish a long-term, effective
working relationship between the parties. The Board of Trustees supports the adoption ofthe interim
IGA and is committed to the adoption of the final IGA in 2007.
May 15, 2007 -2- Item No. 27
BACKGROUND
The draft interim IGA is attached for review. The proposed agreement provides:
1. The City will continue to provide library services to the community for 2007.
2. The District will provide funding to cover the City's costs to provide library services in 2007
up to the amount of$3,851,153. This is the amount originally budgeted by the City for
library services in 2007 and includes funding to reimburse the City for costs already incurred
in providing library services in 2007. The District will pay for the cost of support services
(facility maintenance, custodial, utilities, accounting, human resources, risk management,
tech. support etc.) for all of 2007, estimated at approximately$500,000. The District will
also pay for any other service improvements or additions they would like to see in 2007, as
approved by the City Manager.
3. The City and the District will enter into a final IGA before the end of 2007 with a goal of
having the IGA in place by October 1 st.
4. Operation of the libraries will be turned over to the District on January 1, 2008.
5. The District will reimburse the County for the cost of the election establishing the District.
The final IGA will address all matters relevant to the transition of library services from the City to
the District. These include:
1. The use or conveyance of City real property including the Main Library, Harmony Library,
Southeast Branch Library and the Poudre Creamery properties.
2. The use or conveyance of personal property including the books, materials, shelving,
furniture, computers, etc.
3. Support services the District will purchase from the City, which may include accounting,
payroll, human resources, risk management, purchasing, information technology and
facilities maintenance.
4. The transfer of Building on Basics (BOB) funding for library technology.
5. The possible continuation of library impact fees.
6. The transition of City library employees
libr p oyees to District employees.
7. Appointment process for future trustees
8. Assignment of contracts from the City to the District,particularly the agreement with Front
Range Community College regarding the use and operation of Harmony Library.
May 15, 2007 -3- Item No. 27
ATTACHMENTS
1. Draft of Interim Intergovernmental Agreement Among the Fort Collins Regional Library
District, City of Fort Collins and Larimer County- dated May 9, 2007.
ATTACHMENT 1
[Draft 5/9/07]
INTERIM INTERGOVERNMENTAL AGREEMENT
AMONG
THE FORT COLLINS REGIONAL LIBRARY DISTRICT
CITY OF FORT COLLINS, COLORADO
AND THE COUNTY OF LARIMER, COLORADO
RECITALS
a. The voters within the boundaries established for the Fort Collins Regional
Library District (the "District") approved its formation and a levy of 3.0 mills on all property
within the District at the general election on November 7, 2006.
b. The "legal service area" of the District defined in §24-90-103(4.5), C.R.S., as
amended is described on Exhibit A (the"Service Area").
C. Pursuant to §24-90-107(3)(g), C.R.S. the City of Fort Collins, Colorado (the
"City") and Larimer County, Colorado (the "County") were required to "forthwith establish
such library and provide for its financial support beginning on or before January 1 of the year
following the election."
d. On November 21, 2006, pursuant to the provisions of §24-90-107(3)(g), the
Council of the City of Fort Collins adopted Resolution 2006-118 to establish the District and
appoint two members of the City Council to serve on a committee to select candidates for the
Board of Trustees of the District.
e. Pursuant to § 24-90-108(1), C.R.S., as amended, the City and the County
appointed a seven-member board of trustees in which the management and control of the District
has been vested. The first meeting of the Fort Collins Regional Library District Board of
Trustees (the"Board of Trustees") was held on March 7, 2007. .
f. Pursuant to § 24-90-107(3)(h), C.R.S., the City, the County and the District are
required to enter into an intergovernmental agreement within ninety days of the appointment of
the board of trustees that "shall set forth fully the rights, obligations, and responsibilities,
financial and otherwise," of the City, the County and the District.
g. It is the intent of the City, the County and the District that the transfer of
operation and management of the Fort Collins Public Library (the "City Library") be
effectuated in a manner that serves the best interests of the citizens of the District, the City and
the County.
h. The parties believe that they need more than the ninety day period required by law
to responsibly consider, and fully and deliberately negotiate and reach agreement on, all the
necessary terms of a long-term intergovernmental agreement (the"Final IGA").
i. The parties have agreed that, in the interim, the City will continue to operate the
City Library as the District's contractor at the District's expense, and that the parties will work
together in good faith to provide quality library services to the residents of the Service Area.
j. The parties, therefore, enter into this Interim Intergovernmental Agreement (the
"Interim IGA") to document their respective rights, obligations and responsibilities through
December 31, 2007.
NOW, THEREFORE, the City, the County and the District agree that their rights,
obligations, and responsibilities are as set forth in this Interim IGA.
AGREEMENT
1. Term of Agreement. This Agreement shall be effective on the date last signed below,
and shall remain in full force and effect until midnight, December 31, 2007,unless extended or
terminated sooner, in writing, by mutual agreement of all parties.
2. Obligations and Responsibilities of the Citv.
2.1 Library Operations. The City will operate, maintain and provide the
library services currently provided by the City Library in the same manner and at the same level
as provided for in the City's 2006 fiscal year budget, or at a higher level, on a contractual basis
for the District until January 1, 2008. The City will continue to operate the City Library as a
City Facility, subject to the City's Charter, Code and policies. The City will endeavor to consult
with the District on major decisions affecting the City Library, and the City will be responsible
for making decisions regarding operations of the City Library. Except as required for the
reasonable conduct of the operations and maintenance of the City Library, the City will not
postpone payment of any expenses or fulfillment of any obligations to a later date and shall
satisfy all obligations in the ordinary course of business.
2.2 Library Finances. The City shall continue to collect, account for and use
for library purposes, in the manner required by law and the City's adopted policies and budget,
the Building on Basics library technology tax revenues collected pursuant to Ordinance No. 092,
2005; Library Capital Improvement Expansion Fee revenues collected pursuant to Sec. 7.5-27 of
the City Code; donations, grants and any other funds that, by the terns of their establishment or
conveyance, may only be used for library purposes within the City of Fort Collins.
3. Obligations and Responsibilities of the Library District.
3.1 Powers of Trustees. The board of Trustees shall have all powers and duties
delegated to it under §24-90-109, C.R.S., as amended from time to time, to the extent those
powers and duties are not delegated to the City pursuant to this Agreement.
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3.2 General Obligations. The District shall work with the City to provide library
services for citizens residing within its Service Area through this Interim IGA in a manner
consistent with the Colorado Library Law, § 24-90-101, et seq., C.R.S., as amended, and the
bylaws and policies of its Board of Trustees.
3.3 Reimbursements for County Services. The District will pay to the County from
the proceeds of the mill levy already received by the District in 2007 the sum of$36,379.44 for
the cost of the 2006 election as required by §24-90-107(3)(i), C.R.S. This payment will be made
on or before August 1, 2007.
3.4 Reimbursements for City Services. The District will pay to the City from the
proceeds of the mill levy already received by the District in 2007 the following amounts:
a. $816,139.11 to reimburse the City for costs associated with the operations
of the City Library from January 1, 2007 through midnight, March 31,
2007, plus sufficient additional funds to reimburse the City for costs
associated with the operations of the City Library from April 1, 2007
through December 31, 2007, up to a maximum total amount for 2007 of
$3,851,153.00.
b. $125,500.00 to reimburse the City for administrative services associated
with operation of the City Library from January 1, 2007, through March
31, 2007. This includes the services of the City's Finance, Human
Resources, Operation Services and Management Information Services
Departments.
C. Up to $376,500.00 to reimburse the City for administrative services
associated with operation of the City Library from April 1, 2007 through
December 31, 2007. If the parties agree, this amount may be increased if
requested by the City to cover contingencies or unexpected increases in
the costs of providing the required services under this Interim IGA.
d. Sufficient funds to pay for any additional services, personnel,materials or
equipment requested by the Board of Trustees in writing and agreed to by
the City Manager for the growth, expansion or improvement of library
services beyond those already provided by the City Library, or for
provision of additional administrative or support services by the City to
the District.
3.5 Process for Payments to City. The District shall pay to the City the amounts of
$816,139.11 and $125,500.00 as described in paragraphs 3.4(a) and (b), above, at the time of
execution of this Interim IGA. Thereafter, the City shall provide the District with monthly
detailed cost statements within five(5)business days after the end of the month, showing the
costs incurred by the City for Library operation and administrative services in the preceding
month. The District will reimburse the City for such costs within thirty(30) calendar days after
receipt of a cost statement. The first cost statement issued by the City following execution of
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this agreement may include costs incurred from April 1, 2007 to the end of the month for which
such cost statement is issued.
3.5 Additional Expenditures by District. The District has the right to incur expenses
and spend District revenue for District purposes that are not direct costs of operating the City
Library, to the extent the District has adequate financial resources to do so beyond the
$3,851,153.00 budgeted for Library operations for 2007, and other costs incurred to date.
4. Public Library Fund. Funds received from the District mill levy shall be collected by the
County and remitted to the City as agent for the District. The City has created a "Public Library
Fund." The Public Library Fund, together with all interest income that accrues thereon, must be
used only for library purposes, and shall be expended only after adoption of an approved budget
by the Board of Trustees. Individual expenditures shall be made only in accordance with the
District's bylaws, and for purposes reflected in the adopted budget. .
5. Completion of the Final IGA. The parties will make best efforts to negotiate mutually
acceptable terms for, approve and execute the Final IGA by October 1, 2007, with the goal of
transferring management and operation of the City Library from the City to the Library District
on January 1, 2008.
6. Additional Terms and Conditions.
6.1 Jurisdiction and Venue: The laws of the State of Colorado shall govern the
interpretation, validity, and effect of this Agreement. The City and the District agree that venue
for any disputes arising under this Agreement shall be with the Larimer County District Court,
Colorado.
6.2 Compliance with Laws: In connection with the negotiation and performance of
this Agreement the parties state that they are familiar with § 18-8-301, et seq., C.R.S. (Bribery
and Corrupt Influences), as amended, and § 18-8-401, et seq., C.R.S. (Abuse of Public Office),
as amended, and that no violations of such provisions are present. The parties agree to comply
with the privacy and security requirements of the Health Insurance Portability and
Accountability Act of 1996 (HIPAA) when exposed to or provided with any data or records that
are considered to be "Protected Health Information." The parties agree to comply with any other
federal or state laws concerning the confidentiality or privacy of any information contained in the
records accessed under or in association with this Agreement.
6.3 Assignability: Neither this Agreement nor any rights hereunder, in whole or in
part, shall be assignable or otherwise transferable without the prior written consent of all parties.
6.4 Waiver: Waiver of strict performance or the breach of any provision of this
Agreement shall not be deemed a waiver of any other provision, unless such waiver has rendered
future performance impossible.
6.5 Force Majeure: Except as otherwise provided by Colorado law, no party shall be
liable for any delay or failure to perform its obligations hereunder to the extent that such delay or
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failure is caused by a force or event beyond the control of such party including, without
limitation, war, embargoes, strikes, governmental restrictions, riots, fires, floods, earthquakes, or
other acts of God.
6.6 Notice: Any notices given under this Agreement are deemed to have been
received and to be effective: (1) three (3) days after the same shall have been mailed by certified
mail, return receipt requested; (2) immediately upon hand delivery; (3) the next day, if sent by
commercial overnight courier; or (4) immediately upon receipt of confirmation that a facsimile
or electronic mail transmission was received. For the purposes of this IGA, any and all notices
shall be addressed to the contacts listed below:
For the County:
Board of County Commissioners Larimer County Attorney's Office
200 West Oak Street 200 West Oak Street
Fort Collins, Colorado 80521 Fort Collins, Colorado 80521
ATTN: County Manager
Phone:
Facsimile:
For The Library District:
Board of Trustees Seter& Vander Wall, P.C.
Fort Collins Regional Library Dist. 7400 E. Orchard Rd., Ste 3300
201 Peterson Street Greenwood Village, CO 80111
Fort Collins, Colorado 80524 Phone: (303) 770-2700
Phone: (970) 221-6740 Facsimile: (303) 770-2701
Facsimile: (970) 221-6398 Email: kseternasvwpc.com
For the City:
City Manager Office of the City Attorney
City of Fort Collins City of Fort Collins
City Hall West City Hall West
300 LaPorte Avenue 300 LaPorte Avenue
P.O. Box 580 P.O. Box 580
Fort Collins, Colorado 80521 Fort Collins, Colorado 80521
Phone: (970) 221-6505
Facsimile: (970) 224-6107
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6.7 Integration: This Agreement contains the entire understanding of the parties and
neither it, nor the rights and obligations hereunder, may be changed, modified, or waived except
by an instrument in writing that is signed by the parties.
6.8 Paragraph Headings: Paragraph headings are inserted for the convenience of
reference only.
6.9 Intended Beneficiaries: Nothing expressed or implied in this Agreement is
intended or shall be construed to confer upon or to give to, any person other than the parties, any
right, remedy or claim under or by reason of this Agreement or any covenant, terms, conditions,
or provisions hereof. All covenants, terms, conditions, and provisions in this Agreement are for
the sole and exclusive benefit of the City, the County and the District.
6.10 Severability: If any provision of this Agreement is determined to be unenforceable
or invalid for any reason, the remainder of the Agreement shall remain in effect, unless otherwise
terminated in accordance with the terms contained herein.
6.11 Authorization: Each party represents and warrants that it has the power and
ability to enter into this Agreement, to grant the rights granted herein, and to perform the duties
and obligations herein described.
IN WITNESS WHEREOF, the City, the County and the District have signed this
Agreement to be effective on the date last written below.
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BOARD OF COUNTY COMMISSIONERS
LARIMER COUNTY, COLORADO
Chairman Date
ATTEST: Approved as to form:
Larimer County Attorney
FORT COLLINS REGIONAL LIBRARY DISTRICT
BOARD OF TRUSTEES
President Date
ATTEST: Approved as to Form:
Secretary Seter& Vander Wall, P.C.
CITY OF FORT COLLINS, COLORADO
City Manager
ATTEST: Approved as to Form:
City Clerk Assistant City Attorney
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EXHIBIT A
DESCRIPTION OF DISTRICT SERVICE AREA
(To come)
8
RESOLUTION 2007-055
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING AN INTERIM INTERGOVERNMENTAL AGREEMENT
BETWEEN THE FORT COLLINS REGIONAL LIBRARY DISTRICT,
THE CITY OF FORT COLLINS AND LARIMER COUNTY
WHEREAS, on November 7,2006,the voters approved a citizen initiative to establish and
fund the Fort Collins Regional Library District(the"District")pursuant to Sections 24-90-101 to 606
of the Colorado Revised Statutes (the"Library Law"); and
WHEREAS,on November 21,2006,the Council adopted Resolution 2006-118 establishing
the District pursuant to Section 107(3)(g)of the Library Law and appointing two Councilmembers
to a committee to appoint the initial board of trustees of the District(the"Board"); and
WHEREAS, on March 6, 2007, pursuant to Section 108(1) of the Library Law, the City
Council and Board of County Commissioners for Larimer County ratified the initial appointments
to the Board; and
WHEREAS, Section 107(3)(h) of the Library Law requires the City, the County and the
District to enter into an intergovernmental agreement("IGA")within ninety days of the appointment
of the Board that "shall set forth fully the rights, obligations, and responsibilities, financial and
otherwise,"of the City, the County and the District; and
WHEREAS,the Board has been meeting regularly and on May 2,2007,provided City staff
with a first draft of the IGA; however, City staff and the Board do not believe that the ninety day
period provided for in the Library Law will allow sufficient time to consider,negotiate and resolve
all the issues that must be considered in order to establish a successful, long term relationship
between the parties; and
WHEREAS, City staff and the Board are proposing entering into a simpler, short-term
"Interim IGA" under which the City would continue to operate its libraries for the remainder of
2007, with the costs of such operation to be reimbursed by the District up to a maximum total
amount of$3,851,153.00 for 2007; and
WHEREAS, additional terms and conditions of the Interim IGA include the following:
• the City will continue to operate its libraries as City facilities, as a contractor of the
District;
the District will reimburse the City in an amount up to $502,000.00 for the costs
incurred in 2007 by other City departments,including Finance, Operation Services,
Human Resources and Management Information Services, in providing
administrative services associated with the operation of City libraries;
• the District will also pay for any additional services, personnel, materials or
equipment that it requests to expand or improve library services;
• the District will reimburse the City for the costs of operating the libraries,and related
administrative costs, for the first quarter of 2007, upon the parties' execution of the
Interim IGA; thereafter, the City will bill the District monthly for the previous
month's costs; and
WHEREAS,the City,County and District will continue to work towards having a long-term
IGA completed and in place on or before October 1, 2007„ with the goal of turning over operation
and management of the City's libraries to the District on January 1, 2008; and
WHEREAS, Section 29-1-203, C.R.S., authorizes governmental entities to cooperate and
contract with one another in order to provide any function, service, or facility lawfully permitted to
each if such a contract is properly authorized by each party thereto; and
WHEREAS,the City is authorized to enter into intergovernmental agreements to provide any
function, service or facility, pursuant to Article II, Section 16 of the Charter of the City of Fort
Collins and City Code Section 1-22.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the City Manager is hereby authorized to enter into the Interim IGA with the Fort
Collins Regional Library District for the purpose of providing continued City operation of the City's
libraries for the remainder of 2007,on the terms and conditions described above, and to make such
amendments or modifications to the Interim IGA as the City Manager may,in consultation with the
City Attorney, determine are necessary or appropriate to protect the interests of the City or to
advance the objectives set forth herein.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th
day of May, A.D. 2007.
Mayor
ATTEST:
City Clerk