AgdaPkt 2021.02.22 Joint SA PFA - Laserfiche WebLink

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6.1. - Page 3 of 20 funding structure supports their ability to provide higher levels of service in terms of open hours per week, which will benefit the community. City and JPA staff have developed an operating agreement designed to enhance services to the community while keeping the City's financial obligations level or slightly reduced. This transition aligns with the City's efforts to reimagine City services. The agreement also includes the transfer of assets, including the library collection, furniture and shelving, and certain technology, from the City to the JPA. If approved, the agreement would be effective March 15, 2021, with all assets transferring and the JPA assuming responsibility for library services at the Fair Oaks Branch Library on that date. County Agreement for Common Use of City and County Facilities The 1995 -Common Use/Shared Facility License Agreement is being revisited in light of the fact that the City will no longer need to use the North Fair Oaks Library facilities. The new First Amended and Restated Common Use Agreement allows for the City and County to continue to share the outdoor facilities, including the common driveway, parking facilities and pedestrian pathways while removing any rights and obligations relating to the library. FISCAL IMPACT The budget to operate the Fair Oaks Library for FY 2020-21 was $833,652, with the most significant costs being library staffing (3.06 FTE), custodial services, library materials, and delivery and network costs from the Peninsula Library System. For most of the forty year cost sharing agreement with the County of San Mateo and the San Mateo County Library JPA, the cost has by design been borne approximately 50/50 by the County and the City, although the JPA contribution escalator based on property tax revenues has been significant the last few years, increasing the JPA's originally budgeted percentage this year to 58% of operating costs. Because of reduced services due to COVID-19, as well as a half-time vacancy currently held open, the Fair Oaks Library's actual expenses to date are less than budgeted. Through the end of February, the Library is projected to cost $471,134, and as part of the transfer agreement, the JPA has agreed to pay half of this cost, or $235,567. Because the Library still needs to pay the current Fair Oaks Branch Library employees for the last four months of the fiscal year, even though they will be reassigned to other positions, the increased net cost to the City for FY 2020-21 will be approximately $100,000, as the reduction in anticipated revenues exceeds the reduction in anticipated expenses. However, the Library will be able to absorb this reduction due to unanticipated savings in casual employee costs during the pandemic, so no additional budget appropriation is necessary. Because the agreement includes the transfer of significant assets to the JPA, including the library collection, furniture and shelving, and certain technology, the agreement does not call for any payments from the City to the JPA during FY 2021-22. This will give the Library one year's time to reduce 3.06 FTE in staffing from the Library budget through attrition. Given existing and anticipated vacancies, no layoffs are expected to be necessary in order to reduce the Library's staffing level by 3.06 FTE before July 1, 2022. Page 3 of 5 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 401