To: HONORABLE MAYOR AND From: Jane Light

CITY COUNCIL

Subject: GRANT TO THE SAN JOSE Date: September 17, 2003

PUBLIC LIBRARY FOUNDATION

Council District: Citywide

SNI Area: N/A

RECOMMENDATION

Adoption of a resolution authorizing the City Manager to negotiate and execute, on behalf of the City, a Grant Agreement with the San José Public Library Foundation, through June 30, 2004 in an amount not to exceed $350,000.

BACKGROUND

The mission of the San José Public Library Foundation is to provide advocacy, financial support and innovative leadership to transform San José’s Public Libraries into vibrant learning centers. To this end, the Library Foundation has embarked on a $10 million fund raising campaign for the six new branch libraries being built and 14 being renovated through the branch library bond project. Funds raised through the campaign will be used to support expanded collections, fixtures, furnishings, technology and equipment. These are all expenditures not covered by bond funds.

The Library Foundation has always been a volunteer-run organization and as such has had significant accomplishments, including raising the funds needed to begin Books for Little Hands, and the instructional technology component of Partners in Reading. It also conducted the first citywide reading program, Silicon Valley Reads - One Book. One Community.

A $10 million campaign requires the Foundation to have a higher level of operations, which this grant will make possible. The Foundation will use the grant funds to hire an Executive Director and Development Director, gain campaign expertise from consultants, develop collateral materials to educate the community and prospective donors on the Library and the capital campaign, and make necessary infrastructure purchases such as improved donor database software.

The Library Foundation will raise at least $300,000 in direct contributions and pledges by June 30, 2004. Fundraising for a large capital campaign requires cultivation of donors over a period of several years. This donor identification and cultivation will be a primary focus for the Foundation during the term of this agreement in addition to the fundraising activities that yield immediate results.

ANALYSIS

A fund-raising campaign for the furniture, fixtures and equipment (FF&E) could save the City between $7.5 and $10 million for expenditures in the new library facilities that the Library Bond proceeds do not cover. If a campaign were not conducted, all FF&E costs would need to come from the Construction & Conveyance Tax Fund or the General Fund.

Many libraries and their governing institutions have assisted in the building of successful Foundations by providing the initial seed money for the organization. For instance, Santa Clara City Public Library, Berkeley Public Library, and Sacramento Public Library have used this model. Using the model in San José will establish a Library Foundation that can successfully raise $10 million for the branch libraries and provide substantial annual support for Library programs and new initiatives.

PUBLIC OUTREACH

Not applicable.

COORDINATION

This memo was coordinated with the City Attorney’s Office

BUDGET REFERENCE

Fund: Library Construction/Conveyance Tax Fund -393

Amount: $350,000

Budget Document: Proposed 2003-04 Capital Budget, Page 350 Project #30

CEQA

Not a project

Jane Light

Library Director, Library Department