CITY COUNCIL INFORMATION REQUEST

CITY COUNCIL INFORMATION REQUEST NUMBER: IR 635.2017 REQUESTED BY:

Councillor Sheena Hughes

ORIGIN OF REQUEST:

City Council

DATE OF REQUEST:

July 10, 2017

AUTHOR:

Kelly Jerrott / Peter Bailey / Kate Polkovsky

DEPARTMENT:

Cultural Services / Library / Infrastructure Services

DATE RESPONSE DUE: August 10, 2017 DIRECTOR APPROVAL (if not author): GENERAL MANAGER APPROVAL: CFO APPROVAL (if necessary): CITY MANAGER APPROVAL:

DB-August 9, 2017

y/\y

QUESTION: As a follow up to IR 601, please provide category breakdown for how the current location and branch library arrived at the operating costs. Specifically: - List the cost for utilities, books, and other actual items listed for both locations. - List the number of FTEs required for both locations, and where the FTEs are assigned in the current library location and where they would be assigned in the branch library to justify the numbers. Provide the number of the FTEs in the library from 2009 to 2017 - Provide information from the library administration, detailed justification for how the library operating costs estimates for the proposed branch library were reduced substantially since 2009, considering the annual increases the library has experienced. Include with this a list of which staff positions are no longer required in the proposed branch that were listed as required in the 2009 proposal and list what other items are being removed in the new branch proposal that bring down the operating cost by millions.

1 | City Council Information Request Form

RESPONSE: Summary: • Projected 2019 operating costs, with FTEs, for St. Albert Public Library: o Branch location: $1,259,000 13.2 FTEs o Central location: $4,866,000 39.7 FTEs o TOTAL cost: $6,125,000 52.9 FTEs •

FTEs 2009: 32.3, 2010: 32.3, 2011: 33,3, 2012: 33.3, 2013; 37.67, 2014: 38.58, 2015: 38.75, 2016: 39.7, 2017: 39.7

Please note: The Library business case for a new library facility proposed in 2008 for the 2009 budget year was for a different scope and concept than the 2015 OA005 Community Branch Library project charter, as such the operating budget identified in the 2009 business case is not applicable to the current project. Much has changed in the nine years since this conceptual proposal was brought forward to Council. Research and multiple studies by third party experts has meant an evolution and improvement in the project. These studies include the 2009 Library Community Needs Assessment, the 2013 Library Feasibility Update, the 2015 New Facility Predictive Model and the 2016 Branch Library Feasibility Analysis, Functional Program and Concept Design. Background: In October 2015 Council was presented with Project Charter OA005 Community Branch Library. In November 2015 a response to a Budget Information Request, BIR44-2016, from Councillor Hughes on estimated Branch annual operating costs was presented to Council. The bottom line in BIR44-2016 was that annual operating costs for the Branch Library would be approximately $1.3 million. This figure became part of the updated 2016 version of Project Charter OAOQ5. In December 2015 the Community Branch Library project charter was approved by Council, including funding in 2016 for phase one of the project, a comprehensive study. During 2016 independent experts, including David Hewco Planning, DIALOG Architects and Acumen Cost Consulting, worked with City and Library staff to research the Branch Library project. In October 2016 the St. Albert Branch Library Feasibility Analysis was presented to Council. In the 2016 study, the branch operating cost estimate from BIR44-2016 was validated, with projected 2019 operating costs of the Branch Library estimated at $1,307,000. The study noted that "this zero-based budget was developed with the necessary inputs and then compared with six similar-sized libraries in Alberta, and it was determined that the operating costs fall within the average range.... costs are in 2 | City Council Information Request Form

Cultivate Life

line with the comparators." The study also validated assumptions made in developing the costing in 2015: single storey; large enough to accommodate Library Materials Centre staff; highly sustainable building; use made of cost-saving technology. ST. ALBERT PUBLIC LIBRARY Projected Operating Costs 2019 EXPENSES

Branch

TOTAL

Central

$4,471,800

$3,717,300

$898,900

MATERIALS, GOODS, SUPPLIES & UTILITIES

$550,100

$328,500

$221,600

CONTRACTED & GENERAL SERVICES

$358,300

$316,800

$41,500

$673,000

$576,000

$97,000

$6,198,000

$4,939,000

$1,259,000

$73,000

$73,000

$0

$6,125,000

$4,866,000

$1,259,000

SALARIES, WAGES & BENEFITS

COLLECTIONS Print, Audio-Visual, Digital TOTAL COST REDUCTIONS (Closure of LMC) TOTAL (with LMC closure)

Above is the projected operating cost for the St. Albert Public Library in 2019, including the Central facility in St. Albert Place and the proposed Branch Library. 2017 budget numbers were used as the baseline, with 2% inflation added each year. Salaries, Wages and Benefits: Libraries are service organizations, so the biggest financial investment is in people. Below is an itemized budget of staff costs, by department and position, for both Branch and Central locations. Total FTE positions for the Branch: 13.2 Central: 39.7 TOTAL: 52.9. $898,900

SALARIES, WAGES & BENEFITS: BRANCH [Team] Position [Administration] [Public Services] [PS-Adult] [PS - Children's]

Hours/vjk Branch Manager

36

Librarian Library Assistant

36 42

Library Assistant

90 144

[Customer Services]

Library Assistant

[Customer Services]

Senior Page Page

[Customer Services] TOTAL


Positions

PTEs 1 1

1 1

2 5

1.2 2.5

36

8 1

4 1

90

10

474

28

2.5 13.2

$3,717,300

SALARIES, WAGES & BENEFITS: CENTRAL [Team] Position [Administration] CEO/Leadership Team [IT and Library Materials Centre] [PS-Adult]

Librarians/Assistants

5 10 11

320 207

[PS - Children's] Librarians/Assistants [Customer Services] Desk Staff [Customer Services] Senior Page [Customer Services] [Summer Casual]

Positions

Hours/wk 148 303

12 15

294 36 121

Pages

TOTAL

3 12

FTEs 4.1 8.4 8.9 5.8 8.2

236

7

1 3.4 -

1665

75

39.7

Materials, Goods, Supplies and Utilities: Within this area is Building Operations (Utilities and Maintenance). This line includes utilities, building maintenance and repair (inside and out, including landscaping and parking lot maintenance such as snowplowing) and janitorial. For the Central facility this line is $208,600, which is the assigned Library portion of shared building costs for St. Albert Place. For the Branch facility this line is $198,000, which represents a cost of $9 per square foot. TOTAL $550,100

Central $328,500

Branch $221,600

$406,600 $13,800

$208,600 $10,400

$198,000 $3,400

$2,700

$2,200

$500

Staff allowances (Fitness) Employee recognition

$7,800 $7,200

Operating Supplies (Programming) Operating Supplies (Circulation)

$48,700 $7,000

$5,800 $6,200 $37,700

$2,000 $1,000 $11,000

$28,900 $27,400

$6,200 $24,000

$800

Operating Supplies (Collections)

MATERIALS, GOODS & SUPPLIES Building Operations (Utilities and Maintenance)* Operating Supplies (Office) Program Supplies (Volunteers)

Other Materials Goods and Supplies**

$27,400

$4,900 -

*Central Building Operations costs are the Library's share of St. Albert Place shared costs. **Other costs here are costs unique to the Central facility

Books and other collection costs are broken out of Materials, Goods & Supplies below. The opening day collection for the Branch would be purchased as part of the Branch Capital (animation) costs, including the first full year of operation in 2019. However, we have included an estimated annual cost for collections in the interest of clarity. This cost would begin in 2020. COLLECTIONS Print, Audio-Visual, Digital


TOTAL

Central

$673,000

$576,000

Branch $97,000

Contracted & General Services: Includes annual contracts with companies that provide IT and equipment services, such as automated circulation equipment ("sorters"). The Library's experience with the offsite LMC (Library Materials Centre) has shown that delivery can be done cost-effectively by outsourcing it to a local firm.

CONTRACTED & GENERAL SERVICES Staff Development & Training Advertising & Promotion Accounting (Annual audit) Repair & Maintenance (Equipment) Rentals & Leases (LMC space, Equipment) Insurance Courier & Transportation (Interbranch) Maintenance Contracts (IT)

TOTAL

Central

$358,300

$316,800

$41,500

$26,200 $22,800 $11,400

$20,800

$5,400 $2,000

$4,700 $71,900

$20,800 $10,400 $4,200 $70,700

$9,100 $10,600

$6,200 $5,200

Internet service (Move from LMC)

$110,000 $16,100

$88,400 $14,600

Other General Contracted & General Services*

$75,500

$75,500

Branch

$1,000 $500 $1,200 $2,900 $5,400 $21,600 $1,500 -

*Other costs here are costs unique to the Central facility

The 2016 Feasibility Analysis and Functional Program recommended a branch of 22,000 gross square feet for a number of reasons, including enabling operational cost-savings through closure of offsite leased spaces such as the Library Materials Centre (LMC). This annual cost saving has been identified for the Central facility. TOTAL COST REDUCTIONS

$73,000

LMC lease Campbell storage unit lease

$59,500 $5,400

LMC Internet service LMC courier & transportation

$1,500 $5,400 $1,200

LMC rentals & leases (copier)

Please note: Costs identified do not include the long term operating cost variances such as lifecycle and maintenance items, and one time operational expenditures, such as IT or equipment replacement. These expenses would be included as part of future proposed operating budgets for Council's consideration.

CONFIDENTIAL:

No
