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HomeMy WebLinkAboutItem 8.4 LibraryFinConsultSvs CITY CLERK File # n~[Q]~-~1aJ . AGENDA STATEMENT CITY COUNCIL MEETING DATE: September 16, 1997 SUBJECT: Library Financial Consulting Services Report Prepared by Bonnie Leonard. REcreation Supervisor EXHIBITS ATTACHED: A.. Draft Consultant Agreement B. Budget Change Form C. Consultants Proposal RECOMMENDATION: -$I ~ 1) Authorize the City Manager to execute the agreement at a cost not to exceed $19,000. 2) Approve Budget Change Form. FINANCIAL STATEMENT: Funds were not included in the Fiscal Year 1997-98 Budget, therefore an appropriation from the City's budgeted contingent revenue will be required. . . DESCRIPTION: One of the 1997 high priority goals adopted by the City Council was to prepare an update to the 1993 Library PI::tnnine; Task Force Report. In order to assist the City in accomplishing this goal, Staff recommends that the City secure the services of an independent consultant with a backgr01md in library and municipal finance. The City solicited a proposal from the consulting :finD of David M; Griffith & Associates, Ltd., which has the experience to accomplish this task. The services provided by David M. Griffith & Associates, Ltd. will enable the City to accomplish the following objectives: A. Infrastructure Costs 1. Determine capital cost associated with those facility expansion options identified by the Library Plannine; Task Force including but not limited to: a Expansion of existing downtown library and development of an additional branch library in Eastern Dublin. b. Closure of the existing library and development of a new larger library designed to serve the entire City. Evaluation should include the Civic Center site location and another site to be determined by the Task Force. 2. Review the iinancial and legal implications to the City of converting the existing library to another use. This review should also include a review of the City's current Public Facility Impact Fee and the ability of the city to use that fee toward library expansion or the development of a new central library. . ------------------------------------------------------------~------ COPIES TO: e.4 ITEM NO. K'1/GI9-16-97/as-dmg.doc 3. What financing mechanisms/options are available to the City to fund library infrastructure expansion costs. B. Operational Costs 1. Determine the operational costs (including building maintenance/repair) associated with those facility options defined by the Library Planning Task Force. 2. Determine the ongoing impacts on the Alameda County Library and the City of Dublin for each option. This analysis should also include a revenue analysis which identifies the amount and timing of County library tax available to support increased operational costs associated with each option. (Note: Planning Staffwill provide development projections). 3. Identify when there would be sufficient operating revenue to support the operating costs associated with the various facility expansion options. Staff recommends that the City Council authorize the City Manager to execute an agreement between the City of Dublin and David M. Griffith & Associates, Ltd. for consultant services for a library financial study at a cost not to exceed $19,000. -;..- . . . . . . AGREEMENT BETWEEN CITY OF DUBLIN AND FOR CONSULTANT SERVICES Library Financial Consulting Senice TIllS AGREEMENT is made at Dublin, California, as of September 16, 1997. by and between the CITY OF DUBLIN, a municipal corporation ("City"), and DAVID M. GRIFFITH & ASSOCIATES, LTD. ("Consultant"), who agree as follows: 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in Exhibit A. Consultant shall provide said services at the time, place and in the manner specified in Exhibit A. 2. PAYMENT. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth in Exhibit B. The payments specified in Exhibit B shall be the only payments to be made to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all billings for said services to City in the manner specified in Exhibit B; or, if no manner be specified in Exhibit B, then according to the usual and customary procedures and practices which Consultant uses for billing clients similar to City. 3. FACHJTIES AND EOUIPMENT. Except as set forth in Exhibit C, Consultant shall, at its sole cost and expense, furnish all facilities and equipment which may be required for furnishing services pursuant to this Agreement. City shall furnish to Consultant only the facilities and equipment listed in Exhibit C according to the terms and conditions set forth in Exhibit C. 4. GENERAL PROVISIONS. The general provisions set forth in Exhibit D are .part of this Agreement. In the event of any inconsistency between said general provisions and any other terms or conditions of this Agreement, the other term or condition shall control insofar as it -is inconsistent with the general provisions. 5. EXHIBITS. All exhibits referred to herein are attached hereto and are by this reference incorporated herein. 6. CONTRACT ADMINISTRATION. This Agreement shall be administered by the City's Parks and Community Services Director ("Administrator"). All correspondence shall be directed to or through the Administrator or his or her designee. 7. NOTICES. Any written notice to Consultant shall be sent to: David M. Griffith & Associates, Ltd Management Studies Group - 02 1633 Bayshore Hwy., Suite 380 Burlingame, Ca 94010-1515 Any written notice to City shall be sent to: Ms. Bonnie L. Leonard, Recreation Supervisor City of Dublin P.O. Box 2340 Dublin, CA 94568 Agreement EXHIBIT 11.. Page 1 of2 Executed as of the day first above stated: CITY OF DUBLIN, a municipal corporation By "City" Attest: City Clerk By "Consultant" Approved as to form: City Attorney Agreement Page 2 of2 . . . . . . EXHIBIT A SCOPE OF SERVICES Based on information provided by Library Planning Task Force and City staff determine the library facility improvement options/alternatives (Options) to be evaluated. Develop projected capital budgets for each option identified. Identify and estimate cost of site acquisition. Project capital costs for each option including: Facility planning Architectural and engineering Site improvement Facility construction Furnishing and equipment Scope and one-time cost of library collection expansion necessary for any expanded facility Prepare progress report on capital plans and projections for review. Analyze issues associated with financing projected library expansion. Potential transfer of ownership of current library from County to City ownership once General Obligation Bonds are retired. Explore: Facility ownership issues which could impact expansion options. Anyone-time costs associated with transfer of ownership. Any limitations on use if and when ownership is transferred. Amounts potentially generated based on sale or conversion of current library facility and - available to support library capital project(s). Potential for receipt of grant funds to support library facility planning and! or construction. Availability of Dublin' s Public Facility Impact Fees to support development and improvement options including: Determining the structure and composition of current fees including relationships of facilities involved in library expansion and improvement options. Explore: Total amount offees currently available and likely to be generated based on projected development. Portion of current and projected fees associated with library facilities. Portion of current and projected fees associated with other public facilities involved in identified options. Based on the provisions of AB 1600 determine likely amounts of Public Facility Impact Fees available to support library development of identified options. Availability of funds from Alameda County Public Library for facility and collection expansion or enhancement. Identify capital funds available to support library development alternatives and previously , analyzed costs. Identify any gaps between funds available and required. Exhibit A Page 1 of3 Consider impact of community growth on capital fund availability and project the following: Funds available to support library improvements. Projected timing for availability of those funds. Total amount likely to be generated. Gaps between funds likely to be available and funds required for each option. Appropriate approaches for funding identified gaps under current law. . Analyze revenue potentially available to fund capital costs and identify funding gaps associated with each option. Develop a pro-fonna operating plan for each option. Using the service hoW' base developed by the Library Planning Task Force and staffing requirements provided by Alameda County Public Library, determine operating costs for each identified option. Identify other operating costs associated with each option including building maintenance and custodial costs; services and supplies; and collections replacement and enhancement costs. Calculate any debt service costs which would be required to fund capital improvements which could not be supported by Public Facility Improvement Fees and other revenue soW'ces identified and quantified above. . Combine the above into a pro- fonnata operating budget for each option and document in a progress paper for review by City staff. Project library related revenues and compare them to the pro-formata operating budgets developed above, and: Identify the scope of any gaps between operating costs and revenues, both currently and as growth oCCW'S. Determine extent of growth need to close any cost-revenue gaps. Meet with City staff and define assumptions related to level of General Fund subsidy which will continue to be provided to support service hours above those currently provided by Alameda County Public Library System. Determine subsidy to be employed for analysis. Meet with City planning staff to document and evaluate current growth projections and the scope and content of growth projection data currently available to support revenue forecasting. Apply the library related property tax rate/proportional share of each property tax dollar generated to project incremental library related revenues to be generated over the planning period based upon growth and value scenarios provided by City planning staff. . Use formula provided by the Alameda County Public Library to determine and define how direct costs and revenues would be apportioned to Dublin library facility options. Exhibit A Page 2 of3 . . . Analyze projected revenues (including property taxes and other direct revenues such as fees and fines) year by year and compare to the pro-forma projected annual operating costs. Quantify cost and revenue gaps. based on the assumptions developed above. by year, for planning period and level of City subsidy necessary to close those gaps to maintain projected facilities and services. Considering growth projections, appreciation in the existing revenue base, and likely cost increases, the amount of growth needed to eliminate cost-revenue deficits above agreed upon City subsidy levels. Prepare a :final feasibility study report to be reviewed by City staff, Alameda County Library staff then presented to the Library Planning Task Force. City will provide: -Options identified by Library Planning Task Force. -Service hour base developed by Library Planning Task Force. -Library staffing requirements as developed by the Alameda County Public Library. -Data on the number of residential units projected for construction by year for the agreed upon planning period and assumptions related to assessed value of new units which can be employed to project library related property tax increase. -Data on the projected number of square feet of commercial and industrial development projected for the planning period, and the average or range of assessed value by square foot and primary type. -Formula used by Alameda County Public Library to determine and define how direct and indirect costs and revenues would be apportioned to Dublin library facility options Exhibit A Page 3 of 3 EXHIBIT B PAYMENT SCHEDULE . A. CITY shall pay CONSULTANT an amount not to exceed the total sum of $19,000 (nineteen thousand dollars) for services to be performed pursuant to this agreement. CONSULTANT shall submit invoices, not more often than once per month, based upon the work completed on each task identified in EXHIBIT A "Scope of Work". B. Invoices submitted by contractor are to be based on a time and material basis using the hourly rate shown below. HOURLY RATE: Direct Personnel Expense Principal $110.00 C. The total sum stated in Section A above, shall be the total which the CITY shall pay for the services to be rendered by CONSULTANT pursuant to the Agreement. CITY shall not pay additional sum for any expense or cost whatsoever incurred by CONSULTANT in rendering services pursuant to this Agreement D. City shall retain 10% of all billings for each task, until the City has determined that the scope of services pursuant to this Agreement have been satisfactorily performed. E. CITY shall make no payment for any extra, further or additional service pursuant to this Agreement unless such extra service and the price therefor is agreed to in a written Change Order . executed by the City Manager, or other designated official of the CITY, authorized to obligate CITY thereto. Said Change Order shall be executed prior to the time such extra service is rendered and in no event shall such change order exceed twenty-five percent (25%) of the initial Contract price stated in Section A. In the event the Change Order exceeds this limitation, City -. Council approval shall be required. F. The services to be provided under this Agreement may be terminated without cause at any point in time in the sole and exclusive discretion of CITY. In this event, CITY shall compensate the CONSULTANT for all outstanding costs incurred as of the date of written notice thereof and shall terminate this Agreement. CONSULTANT shall maintain adequate logs and timesheets in order to verify costs incurred to date. G. The CONSULTANT is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of a:fully executed copy of this Agreement. . Exhibit B . . . PQge 1 of 1 EXHIBIT C City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant's use while consulting with City employees and reviewing records and the information in possession of City. The location, quantity, and time of furnishing said physical facilities shall be in the sole discretion of City. In no event shall City be obligated to furnish any facility which may involve incurring any direct expense, including, but not limiting the generality of this exclusion, long-distance telephone or other communication charges, vehicles, and reproduction facilities. ExhibitC Page 1 of1 EXHIBIT D . GENERAL PROVISIONS 1. INDEPENDENT CONSULTANT. At all times during the term of this Agreement, Consultant shall be an independent Consultant and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement. 2. LICENSES: PERMITS: ETC. Consultant represents and warrants to City that he has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Consultant to practice his profession. Consultant represents and warrants to City that Consultant shall, at his sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for Consultant to practice his profession. 3. .IIME. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary for satisfactory performance of Consultant's obligations pursuant to this Agreement. 4. INSURANCE REQillREMENTS. Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or c1::tm::tges to property which may arise from or in connection with the performance of the work hereunder by the Consultant, his agents, representatives, . employees or Subconsultants. The cost of such insurance shall be included in the Consultant's bid. (a) Minimum Scope ofInsurance. Coverage shall be at least as broad as: 1. Insurance Services Office form number GL 0002 (Ed. 1/73) covering comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability - coverage ("occurrence" form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/78) covering Automobile Liability, code 1 "any auto" and endorsement CA 0025. 3. Workers' Compensation insurance as required by the Labor Code of the State of California and Employers Liability Insurance. (b) Minimum Limits of Insurance. Consultant shall maintain limits no less than: 1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. If commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. 3. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident ( c) Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or . ExbibitD Page 1 of3 . eliminate such deductibles or self-insured retentions as respects the City, its officers, officials and employees; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim. administration and defense expenses. . (d) Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages. a. The City, its officers, officials, employees and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant, premises owned, occupied or used by the Consultant, or automobiles owned., leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations the scope of the protection afforded to the City, its officers, officials, employees and volunteers. b. The Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. c. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officers, officials, employees or volunteers. d. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Worker's Compensation and Employees Liability Coverage. The insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from work performed by the Consultant for the City. 3. Professional Liability. Consultant shall carry professional liability insurance in an amount deemed by the City to adequately protect the Consultant against liability caused by negligent acts, errors or omissions on the part of the Consultant in the course of performance of the services specified in this Agreement. 4. All Coverages. - Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended., voided, canceled by either party, reduced in coverage or in limits ~ except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. (e) Accf<Ptability of Insurers. Insurance is to be placed with insurers with a Bests' rating of no less than A:VII. (f) Verification of Covera~e. Consultant shall furnish City with certificates of insurance and with original endorsements effecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. (g) Subconsultants. Consultant shall include all Subconsultants as insured under its policies or shall furnish separate certificates and endorsements for each Subconsultant. All coverages for Subconsultants shall be subject to all of the requirements stated herein. (h) The Risk Manager of City may approve a variation in those insurance requirements upon a determination that the coverages, scope, limits and forms of such insurance are either not commercially available or that the City's interests are otherwise fully protected. . ExlIibit D Page 2 of3 5. CONSUL T ANT NO AGENT. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. . Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever. 6. ASSIGNMENT PROIDBITED. No party to this Agreement may assign any right or obligation pursuant to this Agreement. Any attempted or purported assignment of any right or obligation pursuant to this Agreement shall be void and of no effect. 7. PERSONNEL. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the removal of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, cause the removal of such person or persons. 8. STANDARD OF PERFORMANCE. Consultant shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices his profession. All instruments of service of whatsoever nature which Consultant delivers to City pursuant to this Agreement shall be prepared in a substantial, first class and workmanlike manner and conform to the standards of quality normally observed by a person practicing in Consultant's profession. 9. HOLD HARMLESS AND RESPONSIBILITY OF CONSULTANTS. Consultant shall take all responsibility for the work, shall bear all losses and damages directly or indirectly resulting to him, to any Subconsultant, to the City, to City officers and employees, or to parties designated by the City, on account of the performance or character of the work, unforeseen difficulties, accidents, occurrences or other causes predicated on active or passive negligence of the Consultant or of any Subconsultant. . Consultant shall indemnify, defend and hold harmless the City, its officers, officials, directors, employees and agents from and against any or all loss, liability, expense, claim, costs (including costs of defense), suits, and d::tm::tges of every kind, nature and description directly or indirectly arising from the performance of the work. This paragraph shall not be construed to exempt the City, its employees and -. officers from its own frau~ willful injury or violation oflaw whether willful or negligent. For purposes of Section 2782 of the Civil Code the parties hereto recognize and agree that this agreement is not a construction contract. By execution of this agreement Consultant acknowledges and agrees that he has read and understands the provisions hereof and that this paragraph is a material element of consideration. Approval of the insurance contracts does not relieve the Consultant or Subconsultants from liability under this paragraph. 10. GOVERNMENTAL REGULATIONS. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program. 11. DOCUMENTS. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda or other written documents or materials prepared by Consultant pursuant to this Agreement shall become the property of the City upon completion of the work to be performed hereunder or upon termination of the Agreement. . Exhibit D Page 3 of3 . . . CITY OF DUBLIN BUDGET CHANGE FORM CHANGE FORM # New Appropriations (City Council Approval Required): Budget Transfers: From Unappropriated Reserves _x From Budgeted Contingent Reserve (1080-799.000) Within Same Department Activity Between Departments (City Council Approval Required) Other .:~:;,:_~~~'.::::::;::_:_:_::.::::':<:~lmltI::::::::::ntl:::::~(,tq~!tltlI:::::::: Name:(GeneraJ Fund) NEW PROJECT Library/Community Activity Center- Professional Svcs t19,,000.00 From New Revenues Name: General Fund Non~Departmenta1 Budgeted Contingent Reserve $ 19,000.00 Account #: 001-1080-799-000 Name: Account #:00l-9JXX 729-000 Name: Account #: Name: Account #: Name: Account #: Name: Account #: Name: Account#: Name: Accooot #: Name: Account #: Account #: City Manager: Date: Signature REASON FOR BUDGET CHANGE ENTRY:The adopted 1997/98 Budget did not include funding for consultant services required by the Library Planning Task Force. Preliminary financial services are required to evaluate alternatives for the project. :: :~{~~;1:]:;:~:~:~:~:;;;: ~:::: ::: ::: ::::::: :::::: :~:~~ ...".. );~~~~:r~:~~r:~r~:~:~:~u:;:t~~~Utt~ ..............-:.. .", . . ,'., ~[~j~j~t~\~;!\~;:(fr:~~ :.:.:.:.:.:.:.; ';-:'. .:. ;.:'~.:.:':':.; -: -:':...".... . . . :.:..:!!:lp;PF~::*~::~::€p;y:::Q9_::~_:98:.."Date: .........9Ji619t....................;.. ......................,'.'..,... '.....n.........,.. ........... dO".'" .........-...-.............'.....',.,',., Mayor: Date: Signature Posted By: Date: Signature ~ EXHlBI1' II SQP-l0-97 03:42P DMG Burl;ngamQ 1 650 259 0546 P.02 DAVIDM. GRIFFITH & ASSOCIATES, LTD. Professional Services forthe Public Sector '633 BaY5hore Highway, Suite 360 Burlingame. Califomia 94010 415-259-1200 FAX415-259.0545 . DMG Richard Ambrose City Manager City of Dublin 100 Civic Plaza Dublin, CA 9456& September 9, 1997 Dear Mr. Ambrose: Beverley Simrntlns and I enjoyed meeting with Bonnie Leonard and you two weeks ago to di,;cus,; your intcre.~l in conducl.ing a study of library development oplions und issues. Ba..ed on our conversation, 1 have prepared a leUer outlining how we would approach the issues we discussed. nlC letter opens with a brief overview of our LlndcfSUl.Oding of the City's issues and objectives. OUR UNDERSTANDING OIl' LIBRARY ISSUES IN DUBLIN Over the Ia..t three to four years, Dublin has considered. expanding libr-drY facilities av(ulable to serve City residents. This includes a slUdy completed about four years ago by . :.J. cilizen'" La,,}: force which identified and evaluated library facility options which the City could consider. With recent increase in development including expansion of East Dublin: thc library i~~ue is again receiving atlention. A Library Planning Task Force has heen fomled to provide advice to the City Council on !ibid!)' improvemenl altemativc..c; and priori lies. The principal issues surrounding the library facility issue in Dublin are as follows: . The currenl 1 :>,000 square foot County owned library facility Itx:ated in [)ublin is perceived as too limited to accommodate ~ervice needs of the community a.. growth continues to occur. . A variety of options have been under consideraLion for improving libmry facilities in Dublin including: Ex.panding the exi!o.-ting library facility and huilding a new hranch IihnlJ)' in the East Dublin urea. Building.a new c..-entral library either lldjucent 10 the Civic Center or at another centrally located site. If is cxpeel.ed that the Library Planning Task Foree will consider these aJld otheT oplion~ in the ncnr fuhrre. Given the issues and alternatjvcs at hand, the City is considering rulaining an ouL"ide consulting firm to refine and evaluate library options identitied by the Library Plunning Ta.<1k force und City ~tnff. SJX'Cific issues to be addressed by the consultant include the rollowing: . SQP-~0-97 03:42P DMG Burl;ngame 1 650 259 0546 P.03 DMG . . . Estimating capital costs a...sociated with each alternative including facility planning and design; construction: and sitc acquisition (ali required) and improvement; and furnishings and colleclion for new and/or expanded facilities. These costs would be estimated based on facility and site configuration information provided by City staff. . Idcntifying alternatives and iS1;ues &...sociated with either fuJly or partially funding capital costs including disposition of the current Librury fucility which is owned hy Alameda County: and lhe extent to which the City'" Public Pacility Impact Pee could be used to fund capital costs associatcd with Lihrary facility options. . Pr~icct operating costs, as part. of the Alameda County Library, for each of the ()plions. . Concurrently, pmject the impact or growth on library service related property tax and other revenues generated from Dublin and compare revenue!>: to projected l)pcrating co!>:t!>: to delennine the following: Gaps betwccn operating costs and revenues which exceed the City's current COnLribution Lo enhance service hours above base levels funded by the Alameda County Public Library. The extent of growth which would need to occur to generate library related property tax revenues which would be sufficicnl to offset Dublin liOTary opemling cusls under the Alameda Count.y :structure. The consul Ling errl)rl would focus on addressing the issues noted abovc and would nOT include: Soliciting community input (m prefeJTed library services through :lucn devices as survey or focus groups. The Library Planning Task Foree is intended to fill this role. Serving as staff III the Library Planning Task rorce which will be accomplished and provided by City staff. Relationship" belween the consultant and the Task Force would he limited to: AnalY7.ing the facility option!' identified by the Task. Force including 'Pf"Oviding input on pmjected facility si....e associated with identified options. . Presenting the reSUIL'i of the con~ultant' s analysis to Lhe Ta..k Force. Detailed facility programming or sit.e anaJysis. Capital and operating costs would lx' evaluated ha...ed on sites identified by City staff (including any siLe Page 2 Sep-lO-97 03:43P OMG Burl;ngame ~ DMG 1 650 259 0546 acquisition costs), and capita.l costs w()uld be bused on fadlity sizes identified by staff and t.he Library Planning Tarok Force. The next section of this letter outlines our proposed work approach. OUR APPROACH TO THE PR.OJECT. The work tasks we would accompli~h to achieve the City's study objectives are descrihed helow: · Bused on information provided fly the Task Force and City staff. determine the library facility improvement options/alternatives to be evaluated during the course of the project This wuuld include the following information which would be provided to the study team by the Ta."\k t'orcc and staff: Cenlr'd.1 and branch library mix. Potential sites. Estimated sire for projected remudeled or newly constructed facjJjties. We would plan Io provide input on optimum facility size for the optionMmixes ldentified by City staff and the Ta...k. rorce. · Develop projected capital hudgets for each of the option~ iut;ntificd <L.'i follows: JdentitY and c,litimaLe the cost of site acquil.ition. Project capital costs including facility planning. architecturul and engineering, site improvement, facility construction. and furnishing and equipment estimatc.c; for elli:h facility option/alt.emativc. C..apital costs would also need to consider and project. the scope and one- tjrne cost of lihrary collection expansion necessary for any new or expanded facilities. Once capital plans and cost projections were developed, wc would document them in progress report form and review them with City staft'. and if appropriate, the Librm)' Planning Task Force. We would also recommend that the Alameda C'..ounty Libf"dI)' Director be included in the review of draft pr~iecti(ms and cost estimates. · Once the capital prqjcdit)n~ have been prepared, we would analyze issue:; w\sociat.ed with financing the PrQjccted library expansion. Thil> would include the following: Potential for lr-.msfer of ownership of the current Lihnlry faciliLy from County to City ownership onCe the General Ohlig'Ation Bond" associated with the current facility are retired. This would include Page 3 'p . 040 . . . S~p-~0-97 03:43P DMG Burl;ngame 1 650 259 0546 P.OS DMG exploring: Facility ownership issues which could impact remodeling and expansion options. Anyone-time costs associaled with Lnmsfer of ownership. Any limitations on use if and when ownership was trdnsfcrrcu. For e.xample, could lho o.xisling fucilily he solu and fundc: reinve!.1:ed in a new facilily, or could the exj~ing racility be put to an alternative use (such as a Senior Citizen's Center) 1lJld funds currenLly anocaled Lo providing the altcrnarive use facility be reallocated to suppan library facility constIuction? . Amount-ll potentially generdLed bascd on sale or conversion of the current library facility and available to support library capiLaJ }Trojecl(S). Potential for receipt of gnmt funds to support lihrary facility planning and/or consrmction incJuding ranges of amounts which might be availahlc. A vailahility of Dublin' s Public Facility Impact Fees to - support library development and improvemenl opli<ms. This would include exploring such questions as: Total amount. of fees currently available and likeJy to be gcnerated ha.lled on projected development in Dublin. Portion of current and projected fees associated with library r aciJities. Portion of current and projected fees a"sociated. with other public facilities which arc involved in the options structured in previou." work steps. For example, this would include exploring amounts allocated for Senior Center development. andasscssing the extent to which a portion could be allocated to library development if the current lihmry facility were converted to use u." a Senior Center. . Based on the provisions of AB 1600 and the results of the above. determine likely amounts of Public Pacility Impact Fees which would be available to support library development. within the context of the vlttious options defined at the beginning ofthe project. Availability of any funds from the Alameda County Public Libmry Page 4 Sep-l0-97 03:43P DMG Burlingame 1 650 259 0546 DMG for facility ex.pam:ion or cnhnm:ement including both facilities and collection expansion. Thc resulLs of this work step would be idenlification of capital funds uvailuhle to support the lihrary dcvclopment alternatives and costs previously analyzed, and identification of any gaps between funds Ilvailable and required. The analysis would also consider lhe impaet of community growth on capital fund availability and project the following: Funds availahle t(.l support library improvement.... Projected timing for availabjJjty of rhose funds. Tot"l amount likely to be generated. Gaps between funds likely to be available and funds required for each option. Appropriate approachcl> for funding identified gups to the extent they arc practically aVID lable to the City under current law, The result of this work step would be an 'analysis of revenues potentiaUy available Lo fund capital costs, and identification of funding gaps as~ocjatcd wilh each developmentlcxpanl>iun alternative. · TIlC next workstep would involve developing a pro-r()nn~ opemting plan for each Iibnrry fac1l1ty alternative defined in preceding work tasks. This would include the followiflg: Using the service hour hase developed by the Library Planning Task Force and slaffing reQuircmcnl~ provided by lhe Alameda County Puhlic Library, determine operating costs for each identified option. Identify olher operating cosL'i H.'\Sociatcd with each facility alternative including building maintenance and custodial costs; uLilities; services and supplies; and collection replacement and enhancement COSL.., Cak:ulale any debt service costs which would be requiTed to fund capital improvcmenl.. which could not be supported by Public Facility Improvement Fees and other revenue sources idenLified and quantified in previous work...'iteps. The results of the nbl)Ye would be combined into a pro-fonna operating budget for each facility alternative which would be uocumented in the form of a Prub"TeSS paper which would be submitted to Ciry sLaff and the Alameda County Lihr.ary Dircc(or 10 enl;Urc accuracy and completeness. Page 5 P.Of5 . . . ;., Sbp-10-97 03:43P DMG Burlingame 1 650 259 0546 P.07 DMG . . . In this tinal workstep we would pmjecl libmry ~lated revenues, compare them lo the pro-forma operating budgets developed above, and: Identify the !<lCOpe or uny gaps between operating co:-;ls and revenues. both currently, and as growth in the community occurs. Determine the extent of growrh which will need tu occur to close any cost - revenue gaps. To cl)mplctc this analysis. we will accomplish the foJlowing: Meet. with City starr and define a..sumpLions related 10 the level of General r'llnd subsidy which wilJ continue to be provided to support service hours above (hose currently provid~ by the Alameda County Public Libr.rr)' System. Will the current suhsidy he assumed for the planning period, or should iln alternativc assumption related to a larger or lesser subsidy 00 developed and employed for the analy~is? Meet with City planning staff and document iUld evaluate current growth projections and the scope and content or growth pTl~eclion data currently available tn KUpport revenue forecf,L<;ting. City Rtaff would be expected to provide the following: Data on the number of residential units projected for c{mSLrUCLion by year for an agreed upon planning period, and assumption!: related to ~~e!:!;ed value of new units Y"hich can be cmploycd to prQicct library related property l.ID:. mcrease_ Dam on the projected number of square feet of commercial and itJduslrial development projected for the planniT)g period. and lhe nVer'dge or range of a.~.!~esscd value by square fool and primary type. Apply the Hbr..uy related property laX r.J.le!pToptlrtional ~hare of e3Ch property tax doHar generated to project. incremental library relatccl Tevenue~ 10 be gcncmtcd over the planning period ha~ed upnn growth and value scenarios provided by City planning staff. Use formula provided hy the Alameda County Public Libraf)' to detenninean defme how direct and indirect costs and revenues would be apportioned to Dublin library facility oplions. Once lhese assumptlcms were developed and quantified. projected revenues (including both pmperty taxes and other direct revenues. such a.. lines and fees) would he projected by year over the planning Page 6 Sep-10-97 03:44P DMG Burl;ngame 1 650 259 0546 ~ DMG period and compared lo the pro~form" annuaJ operating costs prQjccled in a previous work !>.lep. Thi" .analy"js would focus on: Quantifying cost. and reVenue gaps, oilsed on the assumptions Uevcloped above, by year, for the planning period and the level of City ~ubsidy necessary to close lhose gaps to maintain pf(~iCCled facilities and ~ervice levels. Considering growth projections, appreciation in the existing revonue base, und likely cosl incrcaltcs, the amount of growth which will need to OCcur to eliminl1l.e cost-Tevenuc deficits above agreed upon City subsidy levels. The rosulL'i of this worle slep wm be combined wilh the results of the pTCL.'eding work SLeps into>> final feasibility study report. The report, once reviewed by City starr and the Alameda County J .ibrary Director, will he pres.entcd to the Lihrary Planning Task rorce.. We are prepared to complele the analysis as described in this Jetter within 60 days of your authorization to proceed. OUR OUALIFICA TJONS TO CONDUCT THE STUDY. David M. Griffith & Associate~, I..tel. was established nearly 20 YCiln\ i:lgo; and in the intervening years. has grown to be the largest consulting firm in the Uniled Statos which specializes in serving public sector clients. We maintain a national network of 35 offices, including our LibT'cuy Consulting Practice in Burlingame, California. Our client hase includes more than 2,000 city, county, nnd state government clients fmmevcry region of the Uni~ States. The fInn is incorpomled in the State of TIlinois. lnitialJy establiShed 10 provide financial consulting services t.o clients, the Firm's cupabHilios have been cxp2Uldcd 10 include clC;ccutive recruitment and managemem and operations .analysi!i.and most recently, libr..uy services. Al the CUrrent time, we arc the only m~or national consulting fum which provides specialized management consulting services to public Jibmries aeross the Unimd States. The table which follows shows recent. iIIu5trative assignments and CUCOLIt which demonstrare our experience in providing Jihrdry related management and operations analysis and feasibility study services to local government clients. Our Library Practice started in California. hut. is now expanding to provide services throughout the United Statc~. Page 7 P . 08. . . . -". '--+" . -+'." -', . d- Sep-iO-97 03:44P DMG Burlingamg 1 650 259 0546 P.09 .~ DMG Client Name City of fio;cnndirln, CA County of Omnge. CA . Cit (If PJo&-anton. CA City ur Richmund, CA Salt l.ake Cit . lIT Cit uf Sah Jose. CA County of Sha.~tn and RMding, CA County of Son Mmeo. CA eil of south Pasadena. CA Sl.lmilll2lWl Cuunt . CA Cir. nf Temeculn. CA City of Vontun\, CA The Lihrary Practice is organized around :oIcnior :-;taff with DMG, and also draw," on an extensive network of experienced commltants and practitioner" to supply e',l;pertise in such highly technical a.reas as IihrdJ)' technology. We would sLaff our project team to work with Dublin with three senior members of our staff. Thcy arc af: follows: . . John W~ Heiss would also serve as project manager and lead analyst on the projecl. Over the course of his consulting career, Mr. HeisR has managed ~\nd completed over 500 management audits and evaluations of local government services. Mr. Hciss ha~ conducted a library fea~ibiHty ~tudy for Laguna Hills in which he evaluated library service alternatives. lie was tIlc project manager and lead analyst for OMG's libnlfY Rerviccs $mdies for Contra Cn!;ta County Ormtgc County, and San Mateo County. nnd previously was prQ,iccl manager and lead analyst on our . Page g ...' ,. SQP-10-97 03:44P DMG Burl;ngamQ 1 650 259 0546 'p . :r0~ ~ DMG lihrary services study for Onmgc County. He has conducted several management audits of librdries including [he Sl\n Mateo Public Libnl.ry, and the Sail Lake City Public Library. Other recent experience includa.l: conducting library feasibility studies for PIeasantoD and Temecula. PrioT In joining DMG, Mr. Heiss was one of" the founding partners of Hughes. Heiss & Associates. · Jacquelyn Harbert is a senior member of DMG's prufessional staff and has 18 years experience in consulting to and working with public ~ector agencies. She wou Id be TC.")ponsible for cost and revenue foreca.\ting. Ms. Harbert has played a major role in OUT analysis of libnlry services for Contra Costa County including developing plans and COSLq for alternative library !o.'ervice configurations. Her other JiM-ell)' exporience includc., a recenl management audit of the Salt Lake City Public Ubrary. and working with Ms. Simmons in the development of a library ~ervices needs aSSessment and facilitic~ plan for San Buenaventum. . Beverley SlmmoQl'; is 0. senior Iibrury service professional WiTh extensive opemting and consulting experience gained from over 20 years experience in the library service area. Ms. Simmons leads DMG's library service pr'clctice and would provide teclmical assistance to lhe team related to libnn)' facilities' specifications and operating cosL.. of the varioul; alternatives. Her el'{pericnce include... serving as Project Director for the C..alifomia Library Restructuring Project; Director of Librar;c!; for the City of Sunnyvale a... well a.. two cities in Ma..;sachusctL'i. anCl a~ a library services consultant for the state.o-; of MassachuseltJ; and North Carolina. As a library services consultant, she ha~ heen a key member o[ the DMG project teams for the Orange County and Contrd C..osta County Librclry studies. She has also condUCled library f-easibiHty sttJdic~ for Plcasanton, Bel vooere. Tcmcculu. and San Buenftventura. Uefercncc... for recent projects completed by the proposed tearn follow on the. ncxl page: Page 9 . . . ". '. .- SQP-1b-97 03:45P DMG Burl;ngamQ. 1 650 259 0546 P.11 . DMG . . · City of SItQ Buenaventura -- Lihrary Needs ASRessment and Facility Plan Included conducting a number of communiry focus groups to determine community aUitudes toward lib......uy needs nnd ~crvice issues; deveIOprTll..-'Tll of library services goals and oQjectives consistent with community need: mld developmenr of a number of allemative operating and facility plans. Analysis of" demographic and community growth lrends, cconomie development directions, and cultural activities were part of this study. . Donna Landeros City Manager (ROS) 654 - 7800, Ext 1 City of Pleasanton -- Library Feasibility Study Reference: Recently c()mpJeted project to develop and evaluate library scrvice delivery aJtenlative.." for PJea~anton_ Included definition of library service objectives and scrviL-e levels; identification of service delivery altemativcs: development of openlting and capital cost plans for each alternative; and evaluation of the service impact (')f each alternative. Two community meetings were held to ~ulicit t'C!;ident input on library service needs. Extensive evaluation of collections, services, and lihrary facilities were part of this study. Reference: 5to\lon Bocian AfJsistant City Manager (510) 484 - 8008 · Orange Count" Library - Library Systems and Services Study System-wide analysis of all aspect" of library services for Or.mgc County and the member jurisdictions of the County Library System. Included the ~valuation or service levels and costs; projection of service cosls to provide ,1Itcmnlive service levels; Wld feasibility analysjs of altemative approaches for organizing and delivering libmry service.... This included elimination ()f the County system and establishment of individual city libraries; rcgt(mal service groupings; and alternative governance and adminiSlnltive contigurutinns fOr u County-wide sYSTcm. I}ach alternative included developmenl of service, staffing, and upemling pluns including requiremenls for provision of lechnical and support services. Reference: John Adams County Librarian (714) 566-3040 Page J 0 SQP-10-97 03:45P OMG Burl;ngamQ 1 650 259 0546 ~ DMG We would be plea-;ed to provide additional work exampJc~ and references upon request. :pROJECT COST. The tahle which follows !Ohnws nur estimate of the profcssional staff timc required Lo cornplctc the work steps described earlier in this prOptlSaI. Penun lloun Work St~ Meet with CiLY slaIT linu the Ubtnry Plonning TQllk Fnree to define libnlT Jildlil 0 tions. Develop space and enst pTlljccliuns fur facility aIlL-mnlivcs. and conven r.o flrc~ice\tld capital budget fur cut:h 1'111emative set of f:acilit n linn!:. T>evelop operating plans and pm-formn operating bud ets for each facilit () tiun. Idcnlily and evaluate capital financing options and ;NffUCS IInu Pl'ojoot funm: availahle Ln Nupport Jibmry ex liion 8.Ild develo . ment. Project library rclnlct.l ruvcnues and compare to ~ .fo.rmil operatin budgets for clu;h of the n)temativCl>. PI" . e and ">>cot fuull rc on. PROJECT TOTA L Costs associated wiLh lhis level of effort would be as follows: 16 <'to 32 24 32 24 168 Cmrt Com ODeJlt Prlll'c""iOtlsl Staff Tinle -. 16& Hour!: :It nvernge ral~ or$ 110 Auto Travel - 10 Round Tri s -13urli..ta nme/Dublin }( . n Production 1 :1IDllXIfiax PRO.tECT TOTAL Co:st $ 18,480 260 160 100 19 000 Given the above, we are prepared to conduct the project 3.'\ de!:'cribed in this proposal for u nuL 10 ,-~x.cccd contract of $ 19,000. * * * If you require any additional information, plca..;c contact me at (415) 259 - 1200. Sincerely Yours, ~~s~ Director -- Page I I 'P.IZ . . .