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SR 05-09-2017 3I Ci ty Council Report City Council Meeting : May 9, 2017 Agenda Item: 3.I 1 of 4 To: Mayor and City Council From: Patty Wong, Director of Library Services , Library Services Department Subject: Authorize the City Manager to negotiate and execute an operating agreement with the Friends of the Santa Monica Public Library Recommended Ac tion Staff recommends that the City Council authorize the City Manager to negotiate and execute an operating agreement with the Friends of the Santa Monica Public Library (Friends) to establish terms and conditions under which the City would continue to pr ovide the Friends with space to operate a bookstore on the premises of the Main Library located at 601 Santa Monica Blvd. Executive Summary The Santa Monica Public Library and the Friends of the Library Board of Directors wish to memorialize the relations hip between the Library and the Friends by adopting an operating agreement that would allow the Friends to continue to operate the bookstore on Main Library property in an independent manner . Allowing the bookstore to operate would continue to bring high quality low cost materials to the community for education and pleasure contributing to the overall wellbeing of the community. Bookstore operations also engage volunteers who wish to connect with others and serve the Library and the City. Additionally, fu nding generated by the bookstore would continue to enrich the Library’s programs contributing to lifelong learning. Background The Friends of the Santa Monica Public Library was founded in 1962 as an organization to support the Library through fundraisin g and volunteer activities. The purpose is to raise funds to enhance the Library’s facilities and services; to encourage gifts, endowments and bequests for the enrichment of the Library’s collections; and to contribute to the cultural life of Santa Monica by offering a variety of programs for all ages. Prior to 2006 the Friends of the Library had storage for materials and workspace in the 2 of 4 basement of the Main Library located at 1343 6 th Street. They also held bi -annual book sales in the parking garage of the Main Library. In 2006 the Friends of the Library began operating a 1,635 square foot bookstore on the premises of the Main Library located at 601 Santa Monica Blvd., which allowed them to be regularly open to the public. Discussion The Friends curre ntly provide approximately $100,000 in annual funding to the Library, and much of that funding is revenue from the sales of material in the Friends bookstore. The bookstore provides the public access to inexpensive books, DVDs, CDs, audiobooks, and other m edia. It is also a resource that encourages the reuse of materials through community donations and library discards. In order to continue to operate the bookstore on Library property, contribute funds to Library programs and services, and enhance the lear ning and thriving of Santa Monica residents , the Library and the Friends Board of Directors wish to memorialize the relationship between the Library and the Friends by adopting an operating agreement. The Friends use the premises to operate a used bookst ore which generally involves coordinating volunteers, processing donated materials it has received (e.g., new and used books, library discards, magazines, CDs, DVDs, audiobooks, and other media appropriate for resale), and storing, sorting, pricing, and se lling said material. Staff have reviewed operating agreements and best practices between Friends of the Library organizations and libraries in neighboring communities. The Friends of the Library Board of Directors voted to accept the operating principles of the agreement at their Board meeting on March 13, 2017. Staff recommends that the City Council authorize the City Manager to negotiate and execute a formal operating agreement with the Friends of the Santa Monica Public Library to establish the follow ing terms and conditions under which the City will continue 3 of 4 to provide the Friends with space to operate a bookstore on the premises of the Main Library: The City has allocated 1,635 square feet of space to the Friends for the book store operation on Li brary premises. The term of the agreement will be for one year and will be automatically extended for additional one -year periods up through 2027, unless terminated for cause or in the event the Library must reclaim the premises for core Library servic es. The Friends will use the premises to operate a used book store, which involves receiving donated materials (e.g., new and used books, magazines, library discards, and other media appropriate for resale), and storing, sorting, pricing, and selling s aid material. The Friends will use all book store net proceeds (i.e., revenue receipts, less bookstore expenses) to support Santa Monica Public Library programming and operations. The Friends shall procure and maintain for the duration of the agre ement a commercial general liability insurance policy with limits of no less than $1,000,000 per occurrence against claims for injuries to persons or damages to property that may arise from or in connection with the operation and use of the premises by the Friends, its agents, representatives, employees, or subcontractors. The City is committed to strengthening partnerships with civic, non -profit, neighborhood and business organizations. The long -standing relationship with the Friends not only provides the Library with significant funding and the amenity of a used bookstore widely enjoyed by Library patrons, it also provides an organized bond between the Public 4 of 4 Library and the public that our libraries serve. An alternative solution would include a hi gher level of staff involvement in oversight and day to day operation of the bookstore. Day to day operation of the bookstore includes establishing policies and procedures, recruitment and training of volunteers, scheduling bookstore volunteers, sales and cash handling, and customer service. Other duties would include overseeing processing, sorting, weeding, pricing, and selling material. This option would allow more staff control of the bookstore , however , it would require Library staffing that does not cu rrently exist. Financial Impacts and Budget Actions There is no immediate, or future, financial impact to the City or budget action necessary as a result of entering into an operating agreement with the Friends of the Library. Prepared By: Rachel Foyt , Senior Administrative Analyst Approved Forwarded to Council REFERENCE:    Agreement  No. 10456   (CCS)