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6A- Library District PresentationCity of Boulder Draft Library District Intergovernmental Agreement and Key Issues from the February 8, 2022, Study Session March 15, 2022 Agenda Introduction by Nuria Rivera-Vandermyde, City Manager Timeline: Library District Discussion to Date Purpose: Council direction on three key issues for the Library District IGA Key Issue1:Lease versus Sale/Deed –Three options Key Issue 2: Library District Board of Trustee Appointment –Two options Key Issues 3:Process for Dissolution of Library District –Two options Next Steps 2018 •Council accepted Boulder Public Library Master Plan. •Implementation included sustainable funding options for the library. 2019 •Library Champions proposed a district by petition, then withdrew after discussions with the City Manager. 2020 •City staff presented background on municipal and district governance and funding options. 2021 •Council directed staff to continue to explore the district by resolution process and to form a committee to discuss IGA terms. Oct. -Jan. 2022 •LDAC met and developed recommendations for the terms of the IGA. Feb. 2022 •LDAC recommendations on the IGA were presented to council. 3 Timeline of Library District Discussion to Date Establishing a Library District by Resolution 4 TABOR Election Voter approval of library district property tax mill levy Joint Public hearing and City Council Resolution / County Ordinance Establish Service Area boundary and proposed Mill Levy Council/County Commission committees appoint Library District Board of Trustees City Council, Board of County Commissioners and Library District Board negotiate an IGA April 2022 November 2022 Within 90 days Library remains a city service TABOR measure fails June 2022 TABOR measure approved Library District forms and transition process begins Intergovernmental Agreement (IGA) Within 90 days of resolution, establishing entities and library district enter an IGA. Terms generally providing for a mutually beneficial relationship and the logistics of separation: •Conveyance of real or personal property for library services; •Transition of library employees from the city to the library district; •Interim funding; •Terms of contract for administrative, maintenance, personnel, procurement, insurance, employee benefits, etc.; •Procedure for future library trustee selection; and •Process if 2022 TABOR measure fails. 5 Key Issue 1: Lease versus Sale/Deed of library facilities and land Question for Council about Key Issue 1 1.Regarding the library facilities, is council interested in transferring ownership or leasing buildings to the library district for the following facilities: •Carnegie Library for Local History (Staff Rec: Transfer land and building) •George Reynolds Branch Library (Staff Rec: Transfer land and building) •New north Boulder Branch Library (Staff Rec: Transfer land and building) •Main Library (Staff Rec: Transfer building) 7 Option A. Lease The city leases one or more of the library buildings to the district.The district is responsible for all maintenance and future capital improvements.​ Considerations •City and library district have landlord/tenant relationship. •Lease term is limited to 20 or possibly 30 years per Charter section 111. •Library district controls investment into facilities. The city and district determine the level of city review or approval to modifications to the building. •City retains ownership of buildings and land. •Library district could not pledge the properties for bond or certificates of participation funding. •As the west bookend of Boulder’s Civic Area, the Main Library land has shared use with other city services. 8 Option B. Transfer of ownership of the buildings/land The city transfers one or more of the library buildings to the district with the land.​ The district is responsible for maintenance of the buildings and land, and future capital improvements to the buildings.​ Considerations •Library district owns assets and controls investment in facilities. City and library district do not have a landlord/tenant relationship. •Library district may pledge the assets for bond or certificates of participation funding. •For Carnegie Library for Local History, the George Reynolds Branch Library, and the new north Boulder branch library, the land is discrete and not used by other city services. •As the west bookend of Boulder’s Civic Area, the Main Library land has shared use with other city services. •The library district will be able to dictate the geographic distribution and diversity of services and facilities through the sale of property. •Colorado law* prevents the library district from using the proceeds from the sale of property for any other purpose than providing library services. 9 * C.R.S. §24-90-112(2)(a) Option C. Combination of Options A and B For one or more of the library facilities, the city transfers only the buildings to the district, and the city owns the land.The district is responsible for maintenance and future capital improvements to the buildings.​ Considerations •Library district owns the buildings. City and library district do not have a landlord/tenant relationship. •The city retains ownership of the land. This could be advantageous in situations where no clear parcel lines exist or the land surrounding asset has a non-library community purpose, such as the Main Library. 10 Key Issue 2: Library District Board of Trustee Appointment Question for Council Key Issue 2 2.What option for the library district board of trustee appointment does council support? 12 Library District Board of Trustee Appointment The initial board of trustees is appointed by a committee composed of two members of each establishing entity (City of Boulder and Boulder County), and then ratified by a two-thirds majority of each legislative body. Colorado Library Law provides two options for the appointment of library district board of trustees as the terms expire after the initial board members are appointed by the establishing entities. 13 Library District Board of Trustee Appointment Option 1: Establishing entities continue the committee to appoint new trustees for board vacancies, and the appointments are ratified* by a two-thirds majority of each legislative body. Option 2:Establishing entities delegate to the board of trustees authority to recommend new trustees, and the appointments are ratified *by a two-thirds majority of each legislative body. *The failure of a legislative body to act within sixty days upon a recommendation shall be considered ratification of such appointment. Colorado Revised Statutes section 24-90-108(2)(c) 14 Key Issue 3: Process for Dissolution of Library District Question for Council Key Issue 3 3.If the TABOR election fails, what option for the timing of dissolution of the library district does council support? 16 Process for Dissolution of a Library District •The process for dissolution is included in the City Council and Board of County Commissioners for Boulder County (BOCC) resolutions to form a library district, respectively. •Through mutual agreement, council and BOCC may determine the process in the IGA for dissolution of the library district if the TABOR ballot item is not approved by voters. •This timeline and approach is fully negotiable, as this is not a defined process in state law. 17 Process for Dissolution of Library District Option 1 •Define what years and how many attempts at funding can occur prior to dissolution. This would look similar to the draft language in the current draft IGA. •If council supports this option, direction is desired on what years and how many. 18 Process for Dissolution of Library District Option 2 •Define a deadline date by which a district must obtain voter approval for tax funding. This would look something like “The electors of the Library District must approve a XX mill levy to fund the District by the Dec. 31, 2025, or the District shall dissolve without further action by the establishing entities and this IGA shall terminate.” •Staff recommends this option, as the language provides a simple yet flexible approach to determine how many times and during what years the measure can be put to vote for approval prior to the established deadline by a board of trustees. •If council supports this option, direction is desired on what date should be included in the draft IGA. 19 Questions for Council 1.Regarding the library facilities, is council interested in transferring ownership or leasing buildings to the library district for the following facilities: •Carnegie Library for Local History (Staff Rec: Transfer land and building) •George Reynolds Branch Library (Staff Rec: Transfer land and building) •New north Boulder Branch Library (Staff Rec: Transfer land and building) •Main Library (Staff Rec: Transfer building) 2.What option for the library district board of trustee appointment does council support? 3. What option for the timing of dissolution of the library district does council support? (Staff Rec: Option 2) 20 Next Steps April 5, 2022 Public hearing and council consider adopting a resolution to form a library district, and appointing a committee of two to appoint the district initial board of trustees. April 7, 2022 BOCC consider adopting a resolution to form a library district. 21 Timeline if a Library District is Formed by Resolution 22 Last June 2022 Meeting Library District Board of Trustees meets to execute final IGA July 2022 Library District Board of Trustees draft TABOR ballot measure and meet election deadlines August 2022 City Council Meeting -Approve final IGA August 2022 BOCC Meeting -Approve final IGA October 2022 City Council Meeting Approval of 2023 budget with library Tuesday, Nov. 8, 2022 TABOR election for library district funding Week of Monday, April 11, 2022 Council/County Commissioner Subcommittee meets to appoint Library District Board of Trustees Tuesday, May 3, 2022 City Council Meeting -Ratification of Library District Board Thursday, May 5, 2022 BOCC Meeting -Ratification of Library District Board Week of May 23, 2022 Library District Board of Trustee deadline for notice to Boulder County of the library district service area boundary map and notice to the County Assessor of the intent to begin collecting property tax in 2022