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SR-850-007 (2) . ~ ~ . gS-O-ff)O r . LI:CAA:vcr City council Meeting of 11/10/87 Santa Monica, California ~ 0 198. TO: Mayor and City council FROM: City staff SUBJECT: Recommendation to participate in Universal Borrowing INTRODUCTION This report presents a recommendation of the Library Board that Santa Monica become a participant in the Universal Borrowing provisions of the California Library Services Act. BACKGROUND The California Library services Act was signed into law by Governor Edmund G. Brown, Jr. in 1978. The Act contains two programs designed to encourage public libraries to loan materials to library patrons who are not residents of their communities, "Equal Access" and "Universal Borrowing." The library as a member of the Metropolitan cooperative Library System (MCLS) now participates in "Equal Access", which reimburses us for direct loans made to holders of library cards from libraries in MCLS. A direct loan is a loan to an individual who comes into the library to check out materials. Under "universal Borrowing" the library would extend direct loan privileges to eligible borrowers from all public libraries in California. In practice, most of our new borrowers would be residents of neighboring areas, such as Malibu and Marina del ~--~ Rey, served by the Los Angeles County Library System, which does V O~81 - 1 - .I . . not belong to MCLS. Libraries in these communities are loaning materials to Santa Monica residents, because L. A. County participates in "Universal Borrowing.1I FINANCIAL ANALYSIS Direct loans are reimbursed on a net basis, that is, we are paid for the number of loans we make over the number of loans made to our residents by other libraries. Our annual reimbursements in the five year period before the Main Library closed averaged $79,100. Should we participate in "Universal Borrowing" we would receive further reimbursements for the net loans we now make to non-resident borrowers from libraries outside MCLS who qualify for a Santa Monica library card by working, going to school, or owning property in Santa Monica, as well as additional non-resident borrowers who previously did not qualify for a Santa Monica card. We estimate the new revenue will be $6,400 per year, and that it will gradually increase to $l2,000. We will also lose the revenue we make selling $25 library cards to non-residents, estimated when Main is open to be $3,700 per year. ADVANTAGES There are two advantages to be gained from participation in Universal Borrowing. First, the City can realize greater revenue than it is currently receiving for serving non-residents, as explained above. The second advantage will be improved public relations and reduced strain on the Library's circulation staff. The present system of issuing library cards on the basis of - 2 - . . . jurisdictional boundaries sometimes results in unpleasant scenes at the registration desk. Most library users are accustomed to unrestricted access to libraries, and they do not understand why Santa Monica refuses them service. The two large systems in our area, Los Angeles city and Los Angeles County, participate in Universal Borrowing, as do 20 of the 29 MCLS libraries. The only potential disadvantage is the impact of the additional borrowers who may use the library. Currently, only 1% or 15,000 of all loans are made to non-residents who are not from MCLS libraries. We estimate that loans to this group will gradually increase under Universal Borrowing, perhaps to 30,000. However, this small increase will have little impact on our overall service. LIBRARY BOARD ACTION The Library Board at its regular meeting of October 2l, 1987 voted to recommend to the City Council that Santa Monica participate in Universal Borrowing. RECOMMENDATION Staff recommends that the City Council approve Santa Monica's participation in the Universal Borrowing provisions of the California Library Services Act. Prepared by: Carol A. Aronoff, City Librarian - 3 - ~/