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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/13/2007 - THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE NEW FO DATE: February 13, 2007 WORK SESSION ITEM STAFF: Marty Heffernan FORT COLLINS CITY COUNCIL SUBJECT FOR DISCUSSION The Intergovernmental Agreement Between the New Fort Collins Regional Library District,the City of Fort Collins and Larimer County. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED The City,County and the new District must enter into an intergovernmental agreement(IGA)within 90 days of the ratification of the District Board of Trustees. City staff intends to draft a proposed IGA to provide a framework for the discussions with the Trustees and the County. Staff is seeking Council direction on how the various issues to be addressed in the IGA should be presented in the draft agreement. BACKGROUND In November 2006, voters approved the creation of the Fort Collins Regional Library District and provided three mills of property tax to fund District operations. A committee comprised of two Councilmembers and two County Commissioners is in the process of selecting the District Board of Trustees. The full Council and the Commissioners must ratify the Trustees. Once the Trustees are ratified, state law requires the City, County and District to enter into an IGA within 90 days setting forth the rights, obligations and responsibilities of the parties. The IGA needs to address a variety of issues to ensure the smooth transition of library services from the City to the new District. What follows is a description of the issues, some options for resolving them and staffs recommended course of action. ISSUE 1: HARMONY LIBRARY AGREEMENT WITH FRCC Harmony Library The City operates the Harmony Library pursuant to an IGA with Front Range Community College. The agreement has a 50 year term which began in 1996. The City does not pay rent. The IGA provides that the City will operate the library for the benefit of the students and the community. The City may assign its rights and responsibilities under the agreement with the College's consent. February 13, 2007 Page 2 OPTIONS: • Assign the agreement to the District with the College's consent along with all of the City's rights and responsibilities under the agreement with the College. • Do not assign the agreement but contract with the District to provide library services for the City as required by the agreement with the College. Staff Recommendation: Assign the City's Harmony Library agreement to the District upon gaining the College's consent on the condition the District uses the facility to provide library services to the students and the community and fulfills all of the responsibilities of the City under the agreement with the College. ISSUE 2: PERSONAL PROPERTY The City owns a variety of personal property currently devoted to library services. This includes the books and materials in the libraries, shelving, computers, furniture, A/V equipment, check out machines and similar assets. The District will need these assets to continue to provide library services to the public. OPTIONS: • Give the property to the District for the purpose of providing library services to the community. • Offer to sell the property to the District. • Keep the property but allow the District to use it to provide library services to the community. Staff Recommendation: Give the property to the District conditioned on it being used to provide library services to the community. This option helps the District provide quality library services to the community and eliminates the City's need to inventory and insure the property. ISSUE 3: SUPPORT SERVICES The City currently provides a variety of support services to the library operation. These include: human resources; accounting; risk management; purchasing; legal; information technology and facilities maintenance. The cost of these services is approximately$400,000 annually. Funding to provide these services is included in the 2007 budget. Council may wish to consider waiving the cost of support services until library operations are turned over to the District after the IGA is in place or for all of 2007. February 13, 2007 Page 3 OPTIONS: • Offer to provide some or all of these support services to the District at cost. • Offer to provide some or all of these support services to the District without charge for all or part of 2007 and at cost thereafter. • Do not offer City support services to the District. Staff Recommendation: Offer to provide any or all of these services, except legal, to the District at cost beginning in 2008, or sooner. Do not offer City legal services because of potential conflict of interest issues and the benefit of having independent legal representation for the District. ISSUE 4: BUILDING ON BASICS LIBRARY TECHNOLOGY FUNDING The Building on Basics (BOB) capital program, approved by the voters in 2005, provided $5,950,000 for library technology. The BOB funding schedule provides the first yearly installment of$744,000 in 2008 with the last installment in 2015. The funding is to be used to provide the library with computers, software, databases and technology maintenance. Options: • Provide the BOB funding to the District on condition that it be used to provide library technology consistent with the BOB ballot language. • Ask the voters to allow the City to use the BOB library technology funding for other City needs. Staff Recommendation: Provide the BOB funding to the District conditioned on it being used to provide library technology consistent with the BOB ballot language. Because BOB funding is primarily provided by City residents (sales tax), require the funding be used to provide the maximum benefit to Fort Collins residents and prohibit the funding from being used to provide technology which primarily benefits non-City residents. ISSUE NUMBER 5: LIBRARY IMPACT FEES The City has collected a library capital expansion(impact)fee on new residential construction since 1996. The current amount of the one-time fee is approximately$500 for an average size dwelling. The fee provides funding for new books and materials and additional facility space to serve the library needs of new City residents. The City has been saving most of these impact fees to build and provide a collection for a new southeast branch library. This library is presently being designed in partnership with the Bayer Properties retail development project. The branch library will likely use February 13, 2007 Page 4 most of the available impact fees. The question is whether the City should continue to collect library impact fees. The District does not have the authority to impose impact fees. OPTIONS: • Continue to collect a library impact fee on new residential development within the City and give the proceeds to the District to provide more books, materials and library space for the benefit of City residents. • Work with the County to create a library impact fee for residents living in the unincorporated areas of the District and continue the City's library impact fee. • Discontinue the library impact fee. Staff Recommendation: Explore with the County the possibility of imposing a library impact fee on residents living in the unincorporated areas within the District boundaries and continue the City's library impact fee. Provide the proceeds to the District to provide more books,materials and library space for the benefit of all District residents. If a fee on residents in the unincorporated areas is not feasible, determine at that time whether to continue the City's library impact fee. ISSUE NUMBER 6: LIBRARY EMPLOYEES City employees working for the library are expecting to become District employees once library operations are transferred to the District. Staff is recommending that the transfer take place after the IGA has been signed by all parties. The City has an interest in ensuring that City library employees become District employees and that their pay and benefits are not diminished by the change in employers. OPTIONS: • Have the District agree to hire current City library employees and agree to provide the employees with a pay and benefits package at least equal in value to the pay and benefits currently provided to the employees by the City. • Let the District decide who it wishes to hire and the pay and benefits it wishes to offer to District employees. Staff Recommendation: Have the District agree to hire current library employees and agree to provide them with a pay and benefits package at least equal to the pay and benefits currently provided to these employees by the City. Recognize the District has the authority to change or eliminate positions and job duties and also has the authority to terminate employees, as provided by law and adopted District policies. February 13, 2007 Page 5 ISSUE NUMBER 7: REIMBURSEMENT FOR 2007 OPERATING EXPENSES The City is providing library services to the community until library operations are transferred to the District. The adopted 2007 City budget does not provide funding for library operations. The adopted budget is based on the City being reimbursed by the District for the City's costs to operate the libraries until operations are turned over to the District. Options: • Ask the District to reimburse the City for costs incurred in operating the libraries in 2007. • Do not ask the District to reimburse the City for library operating costs incurred by the City in 2007. Staff Recommendation: Ask the District to reimburse the City for costs incurred in operating the libraries until operations are turned over to the District. Condition the transfer of assets from the City to the District on being reimbursed. ISSUE NUMBER 8: COUNTY ELECTION COSTS State law provides that the County may seek reimbursement from the District for the County's costs associated with the library district election. The County may wish to include a provision in the IGA for this reimbursement. ATTACHMENTS 1. Chart comparing several Colorado Library Districts. 2. Power Point presentation. Was building ownership transferred? Purchase Were support services provided to Continue to receive county Library District Established Price? If leased, at what cost? new district? Cost? or city funding? Clear Creek County, 2004 No; leased. $ 1 /year Originally paid County. No longer Yes. Georgetown procure from County. East Routt, 1980 No; leased. $ 1 for 20 year lease. Not procured. No. Steamboat Estes Park Public 1988 Building ownership Land leased $1 /year. Contract with Town for employee Town gives annual Urban Library transferred. health benefits, payroll , bookkeeping, Renewal Authority refund of etc. $ 10,000 and check for $27,600 towards building bond. Grand County 1995 All 5 branches were leased $65/mo + utilities for one Not procured. No. from the towns or county. 900 s.f. branch ; $ 1 for 13 years + utilities for another branch . Mesa County Public 1992 Yes; at market price. N/A Not procured. No. Library District, Grand Junction Rangeview Library 2005 Yes; at no cost. N/A Not procured Yes ; mill levy continued . District, Thornton Pueblo City-County 1969 No. $ 1 /year for 99 years. Not procured. No Library District Rampart Library 1976 No. $1 /year. Not procured. No. District Weld Library District, 1986 Building transferred. 1 building leased at County handled HR, IT, finance until No. Greeley $10/year. 2001 under contract but no longer procured. Notes: 1 ) Impact fees cannot be collected by a District. 2 In all cases, collections, furnishings and equipment were transferred to Districts. 01 /26/2007 Intergovernmental Agreement ( IGA ) Fort Collins Regional Library District The City of Fort Collins and Larimer County The City , County and District must enter into an IGA within 90 days of the ratification of the Board of Trustees City staff will prepare a draft IGA to provide a framework for the IGA discussions Staff is seeking direction from Council on how the various issues to be addressed should be presented in the draft IGA Issues for IGA ■ Harmony Library Agreement with FRCC ■ Personal Property ■ Support Services ■ Building on Basics ( BOB ) Library Technology Funding ■ Library Impact Fees ■ Library Employees ■ Reimbursement for 2007 Operating Expenses ■ County Election Costs Harmony Library Agreement with FRCC ■ City has a 50 year agreement with FRCC to use and operate Harmony Library ■ The City operates the Library for the benefit of the students and the community ■ City may assign its rights and responsibilities under the agreement with the College 's consent Harmony Library Agreement with FRCC Options : ■ Assign the agreement to the district with the College *'s consent ■ Contract with the district to provide Library services at Harmony for the students and the community Harmony Library Agreement with FRCC Staff Recommendation : Assign the CmIty "s Harmony Library agreement to the District upon gaining the College "s consent Personal Property City owns a variety of personal property currently devoted to Library services — Books — Materials — Computers — Furniture — Shelving Personal Property Options : ■ Give the property to the District for the purpose of providing Library services ■ Offer to sell the property to the District ■ Keep the Property but allow the district to use it to provide Library services Personal Property Staff Recommendation : Give the property to the district for the purpose of providing Library Services to the communit y Support Services ■ The City currently provides a variety of support services to the Library — Human resources — Accounting — Risk Management — Purchasing — Legal — Facilities Maintenance Support Services ■ Cost approx $ 400 , 000 annually ■ Funding to provide support services included in the 2007 budget ■ Council may wish to consider waiving these costs until Library operations are turned over to the District, or for a I I of 2007 Support Services Staff Recommendation : Offer support services to the District , at cost for 2008 and thereafter Building on Basics Library Technology Funding ■ Building on Basics ( BOB ) voter approved capital program provided $ 5 , 950 , 000 for Library Technology ■ The first installment of $ 744 , 000 is scheduled for 2008 with the last installment in 2015 Building on Basics Library Technology Funding Options : ■ Provide the BOB funding to the District for Library Technology ■ Ask voters to allow the City to use the BOB funding for other city needs Building on Basics Library Technology Funding Staff Recommendation : Provide the BOB funding to the District for Library Technology Library Impact Fees ■ City has collected a Library Capital Expansion ( impact) fee on new residential construction since 1996 ■ The current amount of the one - time fee is approximately $ 500 for an average size dwelling ■ The fee provides funding for new books and library space to serve the needs of new city residents Library Impact Fees Options : ■ Continue to collect the fee on new residential development in the City ■ Work with the County to extend the fee to all district residents ■ Discontinue the fee Library Impact Fees Staff Recommendation : Work with the County to extend the fee to all District residents Library Employees ■ City employees working for the Library are expecting to become District employees ■ The City has an interest in ensuring that City Library employees become District employees and that their pay and benefits are not diminished Library Employees Optionsm ■ Have the District agree to hire current City Library employees — Provide them with a pay and benefits package at least equal in value to what the employees currently receive ■ Let the District decide — Who it wishes to hire — The pay and benefits it wishes to offer Library Employees Staff Recommendation : — Have the District agree to hire current Library employees — Agree to provide them with a pay and benefits package at least equal to what they currently receive — Recognize the District has the authority to change or eliminate positions and terminate employees , as provided by law and adopted District policies Reimbursement for 2007 Operating Expenses ■ The City is providing Library services until operations are turned over to the District ■ The City *'s adopted 2007 budget does not provide funding for Library operations and is based on the City being reimbursed by the District Reimbursement for 2007 Operating Expenses Staff Recommendation : Ask the District to reimburse the City for the cost of operating the Library Condition the Transfer of City assets to the District upon being reimbursed County Election Costs ■ State law allows the County to seek reimbursement from the District for the County 's costs associated with the Library District election ■ The County may wish to include a provision in the IGA for this reimbursement