SPECIAL CORPORATE AND ADMINISTRATIVE SERVICES COMMITTEE. Thursday, January 31, 2013 SCRD Boardroom, 1975 Field Road AGENDA

Transcription

1 SPECIAL CORPORATE AND ADMINISTRATIVE SERVICES COMMITTEE Thursday, January 31, 2013 SCRD Boardroom, 1975 Field Road AGENDA CALL TO ORDER - 1:30 p.m. AGENDA 1. Adoption of Agenda REPORTS 3. Treasurer Sechelt Public Library Rent Annex A Pages 1-49 NEW BUSINESS ADJOURNMENT

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3 SCRD STAFF REPORT DATE: January 23, 2013 TO: Special Corporate and Administrative Services Committee January 31, 2013 FROM: Tina Perreault, Treasurer RE: SECHELT PUBLIC LIBRARY RENT RECOMMENDATION(S) THAT the Treasurers report titled Sechelt Public Library Rent be received for information. BACKGROUND At the January 15, 2013 Round 2 Budget meeting, the following recommendation was made, excerpt as follows: Recommendation No. 4 Library Rents The Corporate and Administrative Services Committee recommended that a staff report regarding library rents, be brought to a Special Corporate and Administrative Services Committee meeting to be scheduled as soon as possible and prior to Round 3 Budget Meetings; AND THAT this report includes a history, from at least 2006, of SCRD Board resolutions and correspondence concerning library rents; AND THAT the Sechelt Library Society provide staff any copies of Library Agreements; AND FURTHER THAT the District of Sechelt be invited to attend this meeting. DISCUSSION Staff has pulled together and attached all past documents that were on file regarding the Sechelt Library rent. Staff also met with Sechelt Library Board and Chief Librarian where copies of past Rental Agreements between the Library and the District of Sechelt were provided. In 2009, the Library Board prepared a summary of the rental history titled The Rent Booklet for the SCRD Board and District of Sechelt Council. Many past meeting occurred in a workshop format; therefore, there are a limited amount of formal motions on record on the subject. It appears that the rental sums have derived from the debenture debt for the construction on the building in In 2006, ten years after the initial borrowing, MFA re-set the interest rate on the issue, which resulted in the debt payments to be reduced from $134,678 to $87,803. These amounts have established the basis of the current rental amounts. The last debenture payment is scheduled for June \\scrd.ad\files\networkfiles\finance\1880 Reports, Statistics - Financial\ Reports - General\2013- JAN 31- SPECIAL CAS STAFF REPORT-Sechelt Library Rent Info.docx 1

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5 RENT 0 2 Prepared: August 2009 assist decision makers at the District Municipality of Sechelt and the Sunshine Coast Regional District. This RENT Booklet is prepared by the Sechelt Public Library Board of Trustees to BOOKLET THE

6 grant-in-aid equal to the rent charged. bylaw to borrow up to 1,250,000 for the construction of a new library. When the DoS building that houses the library was built, DoS was both the landlord and primary funder of the Sechelt Public Library. It appears that DoS provided a In 1993, the residents and property owners of the District of Sechelt supported a 3 agreement. The current agreement, effective January 1, 2008, does not set out a specific amount to be paid. The rental amount was $134,700 in the original rental agreement and the 2002 calendar year. grant for this purpose from another local government during the same portion of the rent for which it has received an equivalent amount in a The current rental agreement (dated January 1, 2008) states that DoS will provide a grant-in-aid equal to rent, except that the Licensee will pay any stated that this rent was covered by a DoS grant for an equivalent amount, and $40,000 grant-in-aid for services provided to non-resident users. It was explicitly the requested grant-in-aid monies would not be used for rent. In a letter to the SCRD in December 1996, the Chair of the Library requested a during the same calendar year. the library: equivalent amount in a grant for this purpose from a local government need not pay any portion of the rent for which it has not received an The original rental agreement prepared in 1996 and the 2002 versions state that Historical Background:

7 Sechelt and unchallenged over the years. As the Library has grown in terms of services and the public served the rent has become an inhibitor to these types of growth. The Basically, because of the history, the rent for the library has become entrenched 4 1/6 th the size of our Library. Our library has the worst rent situation in BC. extreme group is a library on Pender Island in the Gulf Islands and it is less than found in column 6 to the very right side of the graph. The only other library in this 97.3% of BC libraries pay less rent than Sechelt Public Library. Sechelt at 26% is their facilities. The provincial mean is 9% and the median expenditure is 8%. these libraries are paying LESS THAN 10% of their operating expenditures for 27 libraries paying 6% to 10%. This means that 51 libraries in BC, or 71.8% of Herein we have produced a graph of the Percent of Total Expenditures on Library Facilities. Of the 71 libraries, there are 24 that pay between 0% and 5%. There are Library pays 26% of its expenditures for its facilities. Look through the other percentages and then please look at: column titled % of Total Expenditures on Library Facilities. Public of 15,174 and our facilities expenditure is presented as $ 160,154 of which You will find Sechelt Public Library on page 2. We have a service area population Total Expenditures column. The purpose of this table is to show you the last Please refer to the data table entitled BC Library Facilities Expenditure $135,000 is rent and the remaining $25, 154 represents the other expenditures for maintenance as mentioned at the top of this data table. Next is the all inclusive Attachment # Attachment #1 throughout BC. The library will demonstrate these facts by providing and discussing them. rent is also factually exorbitant in terms of other libraries and library systems Current Situation:

8 Expenditure $609,397 X 9%=$54,846 minus $25,154 (maintenance) = $29,692 per expenditure for facilities should thus approximate $29,000 per annum. year. Rent for Sechelt Public Library based on the provincial mean percentage 5 suffer with an unreasonable rent situation, that in turn leaves a false impression not. This false impression means that figures become skewed and operationally we This very high rent makes our library appear as highly funded and yet we are Implications: Given the two methods of presentation which resulted in rent in the territory of $29,000 to $39,000 Sechelt Public Library is vastly overcharged and has virtually the worst case rent scenario of any Library in BC. Therefore, if our rent was somewhere near the rent charged other libraries, on a floor area basis we would be paying in the vicinity of $39,000 per annum. Our library is m2 X $60.57 = $39,388. The median rate is $65.60 / m2 paid by Grand Forks Library. The mean can be calculated including Sechelt = $ ! 17=$68.64 / m2, or: Excluding Sechelt = $ /16 = $$60.57/ m2 year. The most expensive rental in the sample of 17 similar sized libraries is Sechelt. Put another way, this calculates out at $1.53 per square foot which is the 16 other libraries closest in size. The basis for comparison is the rent (-i-maintenance) expenditure in dollars per metre squared ($/m2). As the reader can Please look at this attachment. This graph compares Sechelt Public Library and the see from the list there is variance from $2.74 /m2 to a high of $ /m2 per level of commercial rent paid in large shopping malls. Attachment #3 pay a rent at that rate: If the provincial mean (average) is 9% then it makes sense that the library should

9 about our level of operating funds. The current rent of $135,000 cannot be grown over time as the library grows and real costs escalate. Basically we appear to have about $100,000 more than we actually have to spend. It is a well known fact that Sechelt Library is underfunded by more than $70,000 per annum compared to Gibsons and this rental false impression simply exacerbates that difference. If you compare us to Gibsons you will find that the % of Total Expenditures is at 9%, right on the provincial mean. The Gibsons data can be confirmed by looking through the attachments provided. Truly there is a huge inequity right here on the Sunshine Coast. The reader will be aware that the library has cut its hours from 48 to 36 in order to attempt to recover underfunded operating expenses. It has just been announced that provincial grants will be cut by some 22% so the library will need to cut some actual programs. Truly, these may be tough economic times but the exorbitant rent along with the lack of surety of funding makes it extremely difficult to operate a library that meets the needs of our local service population. 6

10 BC Public Library Facilities Expenditure Expenditures related to the operation and maintenance of all buildings or parts of buildings occupied by the library, including lease or rent cost and the cost to the llbraiy of heat, electricity, insurance, janitorial, repairs and maintenance. %oftotai Expenditures Service Area Facilities Total on Library Librarles Population Expenditure expenditure Facilities Alert Bay Public Library 1,289 $1,065 $19,112 6% Beaver Valley Public Library 5,109 $15,167 $171,194 9% Bowen Island Public Library 3,501 $28,290 $168,295 17% Bumaby Public LIbrary 205,477 $453,497 $9,075,520 5% Bums Lake PublicLibrary 6,841 $8,953 $287,041 3% Cárflào Regional District Library 70,849 $237,293 $2,602,717 9% Castlegar & District Public Library 13,275 $31922 $418,398 8% Chetwynd Public Library 5,225 $13,427 $515,353 3% Coqufflam Public LIbrary 119,334 $133,761 $4,183,110 3% Cranbrook Public Library 26,024 $65,162 $672,709 10% Creston Public Library 12,843 $94,005 $403,748 23% Dawsori Creek Municipal Public Library 18,637 $70,603 $445,590 16% Elkford Public Library 2,683 $0 $84,065 0% Fernie Public Library 8,007 $2,220 $257,153 1% Fort Nelson Public Library 6,303 $27,000 $285,601 9% Fort St. James Public Library 4,867 $23,547 $104,235 2% Fort St John Public Library 297 $58,762 $593,618 Fraser Lake Public Library 3,4 $3,123 $84,006 4% Fraser Valley Regional Library 669 $291,628 $20,269,557 1% Gibsons & District Public Library 10,7 4 $47,236 $525,605 9% Grand Forks & District Public Library 8 $35,424 $344,126 10% Granisle Public Library $0 $46,109 0% Greater Victoria Public Library 299,4 $579,326 $11,878,830 5% Greenwood Public Library 90 $3,158 $33,996 9% azelton District Public Library 8,1 $11,602 $126,506 9% ouston Public Library 3,7 $12,667 $132,120 10% Hudson s Hope Public Library 1,1 $8,860 $115,993 8% nverrnere Public Library $9,860 $159,011 6% <asia & District Public Library 2,010 $6,648 $45,655 15% <imberley Public Library 8,29 $0 $236,430 0% itimat Public Library 10, 10 $126,674 $637,489 20%..illooet Area Public Library 4,467 $31,193 $237,354 13% Aackenzie Public Library 5. 8 $33,480 $254,676 AcBnde & District Public Library $5,391 $127,025 4% 4ldway Public Library $1,660 $33,209 5% lakusp Public Library 2,7 $6,140 $116,308 5% 4elson Municipal Library 9 3 $102,277 $567,245 18% law Westminster Public Library 57,64 $184,217 $3,003,495 6% iorth Vancouver City LIbrary 49 7 $149,291 $2,587,353 6% 4orth Vancouver District Public Library 59,132 $197,551 $4,721,952 4% )kanagàn Regional Library 359,952 $2,340,506 $12,244,586 19% emberton & District Public Library 5,382 $8,992 $183,524 5% erider Island Public LIbrary 4,664 $34,811 $118,138 29% enticton Public Library 34,681 $174,522 $1,148,635 15% i9 en,iw, r*j 7

11 %oftotal Expenditures Service Area Facilities Total on Library Libraries Population Expenditure expenditure Facilities Port Moody Public Library 30,120 $15,718 $1,469,803 1% Pouce Coupe Public Library 910 $2,163 $45,096 5% Powell River Public Library 20,967 $26,300 $685,470 4% Prince George Public LIbrary 90,948 $581,440 $3,819,873 15% Prince Rupert Library 17,366 $39,888 $630,151 6% Radium Hot Springs Public Library 921 $599 $12,968 5% Richmond Public Library 176,599 $552,457 $7,566,526 7% Rossland Public Library 3,970 $16,145 $144,823 11% aimo Public Library 2,483 $9,393 $93,578 10% alt Spring Island Public Library 9,279 $18,786 $174,793 11% Sechelt Public Library 15,174 $160,154 $609,397 26%,llers Public Library 8,248 $13,890 $207,926 7%,àiwaád Public Library 4,932 $35,236 $216,458 16% ärnish Public Library 16,927 $71,984 $812,387 9% Stev art Public Libréry 670 $0 $48,136 0% urrey Public Library 402,281 $1,128,148 $11,951,859 9% Taylor Public Library 1. 0 $13,485 $171,125 8% Terrace Public Library 22,0 $52,823 $670,533 8% Thompson-Nicola Regional District Library 130,93 $821,801 $5,368,446 15% Trail & District Public Library 10,776 $39,623 $470,381 8% Tumbler Ridge Public Library 2,698 $341 $245,955 0% Valemount Public Library 2,185 $7,724 $107,231 7% Vancouver Island Regional Library 424,173 $2,702,478 $14,926,970 18% Vancouver Public Library 589,196 $3,395,286 $34,469,727 10% Vanderhoof Public Library 8,293 $21,143 $164,028 13% West Vancouver Memorial Library 46,145 $154,560 $3,609,420 4% Whistler Public Library 9,843 $11,543 $875,578 1% ProvIncial Average 9% 8

12 24 0-5% Percent of total expenditures on Library facilities % 10% or under = 71.8% of Libraries % 97.3% of Libraries pay less rent that Sechelt Public Library % Provincial average (mean) = 9% % Median = 8% % 7c!Hø1/J dz Serlesl Linear (Serie I I I I I Sechelt Public Library is in column 6 9

13 Dawson Creek Fernie 2.74 Fort St. John Gibsons T14CMiIg i3 0 Sechelt Vanderhoof Nelson Prince Rupert Kitimat Lillooet Powell River Salt Spring Grand Forks 65.6 Squamish Creston Chetwynd 19.4 Burns Lake tntthh1l 1234 I I I I I I I I I I I I I

14 by Gad Johnstone) and a novel for having achieved their reading goals. Well done everyone registered for the program, many received the Royal Bank ofcanada reading medals (presented The Sechdr Public Library once again sponsored a Summer Reading Club for children in cooperation with the BC LibrazyAssociazion and with funding assistance from the BC Ministry Debra Mac?ilhiajn from the astronomy dub and puppeteer, AyIa Heeds. Over 100 children with several guests such as the Summer Reading Program s official illustrator, Scot Ritchie, learning and to take part in related crafts and activities. They had the opportunity to meet a vatiety of fun and exciting incentives the children were encouraged to read for fun and ofeduration. The program s theme this year was Follow the Reader - Be a Championi Using FOLLOW THE READER ISA SUCCESS RUG, 2o4 PHO..) BONNIE CREAI< 0 11

15 Sechelt Library "Rent" Cost of building $ 2,052,125 Amount borrowed $ 1,250,000 61% of total project cost Portion of total cost related to SPL $ 985,020 (based on 48% of sq footage) Sq ft for SPL $ 7,637 48% Total Sq footage $ 15,910 Alternate Sq ft for Library $ 6,078 38% Total Sq footage $ 16,150 Amount of debt related to SPL share of library$ 985,020 79% of the overall debt * $1.2mil based on 48% of total building costs Annual Debt Pmts prior to 2006 $ 134,678 SPL portion $ 106,128 79% Other maint & overhead costs $ 18,825 (per DoS) Total SPL $ 124,953 Annual Debt Pmts after 2006 $ 87,803 SPL portion $ 69,190 79% Other maint & overhead costs $ 18,825 (per DoS) Total SPL $ 88,015 12

16 Debt attributable to Sech. Libr. based on square footage/cost Jan 14/05 Sq. Footage at grade nd flr. Sq. footage 7375 Total (as per blueprints) Shared space sq. footage Ist flr toilets 22x S. Vest/lobby 21x Mechanical Rm. 10x Unshared space total minus shared Library only: W. end 32 x Centre 54x56-4x10 (WC) 2984 Children's area+circ 18x Story rm 8x16-5x5 (corners) 103 N. Wing (offices) 33x Electrical Room 10x8 80 DoS only ttl-libr.-shrd sp Library % of unshared space % Library share of shared space shd. Spce x 37.6 % Total sq. ftge. Attr. To libr. line 28 + line Ttl. Libr. Ftge as a & of whole % Total Bldng costs $ 2,052,125 Special Sech. Costs $ 91,560 Two extra tower stories Steel Tower stairs Fire escape stairs and flrspace Clerestory windows and skylights Balconies Estimate of above $ 50,000 Elevator $ 41,560 Library special costs As per DoS Calc $ 32,466 Total of Special Costs $ 124,026 Remaining Building Cost Spcl. Costs out $ 1,928,100 Library portion (37.6%) $ 725,587 $ 12,190 Plus special libr. costs $ 32,466 Total Libr. Cost/portion of debt $ 758,052 $ 12,190 Total debt ,250,000 Libr. Portion of debt./interest As a percentage 59.66% 60.64% Debt - Interest $ 96,876 Interest on Library % $ 58,750 Area B 15% $ 8,812 13

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55 HISTORY OF RESOLUTIONS PERTAINING TO SECHELT LIBRARY RENTS July 23, /09 Recommendation No. 8 Sechelt Library Rent March 26, 2009 THAT the Treasurer s report regarding the Sechelt Library Rent be received; AND THAT a special meeting be scheduled in early September with the Sechelt Public Library, the District of Sechelt and Sechelt Indian Government District Councils and the participating rural-area directors to discuss how the library budget process will be managed; AND THAT this report be referred to the above mentioned library meeting; AND FURTHER THAT minutes be taken and recommendations be brought to a Corporate and Administrative Services Committee meeting for ratification. 126/09 Recommendation No. 31 Roberts Creek Library Service February 26, 2009 THAT the 5 Year Plan, Years , for the Roberts Creek Library Service [646] be received as presented; AND THAT staff report back at a future Corporate and Administrative Services Committee meeting with a history of the rent paid by the Sechelt Public Library to the District of Sechelt. 074/09 Recommendation No. 17 Libraries THAT staff report back with an overview of the history behind the rental rate paid by the Sechelt Public Library to the District of Sechelt; AND THAT staff report back on the possible implementation of a subregional function for library service. 46

56 March 8, /07 Recommendation No. 4 Libraries Funding THAT the Treasurer s report on Libraries Funding be received for information; AND THAT staff incorporate figures per option C into the Budget for Round 3; AND THAT the 2007 Sechelt Library grant be 6% over the 2006 operations portion of the budget, plus rent in the amount of $88,050; AND THAT the contributions be as follows: Area A $19,680 SIGD $ 6,500 Area B 6% over last year AND THAT the Area A Economic Development Function [531], Line Object , Grants Conditional Local Agencies, be reduced by $6,000 to reflect the increase in contribution by the Area A Grant-In-Aid Function [121] to the Sechelt Library total of $19,680; AND THAT staff send a letter to the Sechelt Library requesting that they provide the number of Area A memberships and the number of Area A memberships not used in the previous twelve months; AND FURTHER THAT staff send a letter to the Sechelt Library requesting that they contact the Sechelt Indian Government District to arrange a meeting to discuss the promotion and educational value of library services for the Band Members and that the Sechelt Indian Government District receive a copy of the letter. Recommendation No. 8 Roberts Creek Library Service [646] THAT Area D s contribution be $110,000 (including administration and District of Sechelt rent) with $51,000 for each of Sechelt and Gibsons libraries and $8,000 (an increase of $1,200 for 2007) for the Roberts Creek Reading Room; AND THAT staff draft a letter to the Roberts Creek Reading room explaining that the increased allotment over 2006 is to be split between additional rent to the Community Association and additional insurance on the books in the library; 47

57 AND THAT the money for the insurance will be given to the Reading Room once it has been documented that the insurance has been purchased; AND FURTHER THAT the 5 Year Plan, years , for Roberts Creek Library Service be referred as amended to the third round of budget meetings. November 10, /04 Recommendation No. 1 Sechelt Public Library Overview and Cost Sharing July 8, 2004 THAT the General Manager of Corporate Services Report on Sechelt Public Library Overview and Cost Sharing be received for information; AND THAT the District of Sechelt, Area A and Area B enter into a two year agreement with the Sechelt Public Library; AND THAT the apportionment mechanism be based as follows: Sechelt Indian Government District to be agreed on with the Sechelt Public Library Pender Harbour on Membership District of Sechelt and Halfmoon Bay on circulation; AND THAT Staff pursue clarification on Provincial Grants and devise a method to deal with any potential shortfall; AND FURTHER THAT staff provide options, regarding payments in lieu of rents, based on today s discussions. 428/04 Recommendation No. 5 GM of Corporate Services Sechelt Public Library Funding THAT the General Manager of Corporate Services report on Sechelt Public Library Funding be received; AND THAT the SCRD establish a Sechelt and Area Library service and that the service area include the Sechelt Indian Government District, Area A, Area B and the District of Sechelt and that proportional payment for operating and operating capital be based on membership; AND FURTHER THAT, based on further research, future discussions take place on operating capital and debt for the building and/or rent. 48

58 Recommendation No. 6 Quantity Survey Sechelt Public Library THAT the District of Sechelt be requested to provide the results of the quantity survey for the Sechelt Public Library conducted by the District. Recommendation No. 7 GM of Corporate Services Sechelt Public Library Budget Review Committee Terms of Reference THAT the General Manager of Corporate Services report on Sechelt Public Library Budget Review Committee Terms of Reference be received; AND THAT the Sechelt Public Library Board provide comment back to the General Manager of Corporate Services; AND FURTHER THAT this item be deferred to the September Corporate and Administrative Services Committee meeting when the Director for the District of Sechelt is present. 49