To:   HONORABLE MAYOR                              From:   Citizen Oversight

                        AND CITY COUNCIL                                                Committee for the Library

                                                                                                              Bond Projects

 

   Subject:   See Below                                                    Date:     November 21, 2003

 

COUNCIL DISTRICT:  City-wide

 

 

SUBJECT:    ANNUAL STATUS REPORT ON THE BRANCH LIBRARY BOND PROJECTS

 

 

RECOMMENDATION

 

That the Mayor and Council accept this report on the library bond projects. 

 

 

BACKGROUND

 

After overwhelming voter approval of the Branch Library Bond Measure in November 2000, the City Council appointed the Library Commission as the Citizen Oversight Committee to conduct an annual public hearing and prepare an annual report informing the Council and public of the appropriateness of bond expenditures, the progress of the various projects, and the results of the annual audit on or before December 31st of each year.

 

On November 12, 2003 the Citizen Oversight Committee for the Library Bond Projects conducted a public hearing regarding the Branch Library Bond Measure approved by voters in November 2000.  Richard Desmond, Director of Branch Library Development, presented information to the Committee regarding the appropriateness of bond expenditures and the progress of the various projects.  Jose Garcia from the Finance Department presented the results of the annual audit.

 

This report to the Mayor and Council provides an update on the status of the branch library bond projects at the end of its third fiscal year (2002-03).

 

 

PROJECT STATUS

 

Work on the Library bond projects was well underway in 2002-03.   Three branches, Vineland, Berryessa, and Tully Road, were under construction and five branches, Alum Rock, Rose Garden, Evergreen, Hillview, and the Almaden joint facility were in design.   The lease agreement relocating the Hillview Branch to Fischer Middle School was approved by the Alum Rock Union Elementary School District and the City Council.  Consultants completed system-wide standards for interior design, fixtures, furnishings and equipment, and interior and exterior signage and these standards are being utilized in the design of the new facilities.  Negotiations for a site for the West Side branch began, and several sites were still under consideration for the Cambrian and Southeast branches.  

In an effort to delay operating and maintenance costs, the construction schedules for the Alum Rock and Berryessa library projects were deferred by one quarter. The design and construction of the Joyce Ellington branch was accelerated one quarter to temporarily provide staff and collections for the new Alum Rock branch.  The design phase of the Hillview branch was accelerated one quarter in order to qualify for potential state grant funding.

 

In summary, eight library projects including three new and five replacement facilities were underway in 2002-03.  Land acquisition for new and relocated projects was continuing.  Additional details and updates on each project can be found at the Branch Library Development website:  www.newsanjoselibraries.com.

 

 

 

PROJECT FINANCING, REVENUE AND EXPENDITURES

 

In 2002-2003, $30 million in General Obligation Bonds were issued to fund library projects.  This second bond issuance for these projects brings the total bond proceeds to $61 million.  The first bond issuance occurred in 2000-01 and totaled $31 million.  Through the fourth quarter of 2002-2003, library expenditures and encumbrances totaled $35.7 million.  Unexpended and unencumbered funds have been reprogrammed and will be expended in 2003-04.  The City expects to issue additional GO bonds under the Branch Library Bond authorization over the next succeeding five to eight years. 

 

The independent accounting firm of Macias, Gini & Company completed the annual audit of all city funds in September 2003 for the fiscal year ended June 30, 2003.  The audited financial statements, known as the Comprehensive Annual Financial Report (CAFR) included an extensive review of the Branch Libraries Bond projects Fund.  As part of the outside auditor’s review, any significant issues are identified and commented upon.  The Finance Department and the City’s independent outside auditors made a comprehensive presentation of the audited financial statements to the City’s Making the Government Work Better Committee on October 8, 2003.  No significant issues were identified in the Branch Libraries Bond Projects Fund. 

 

 

PUBLIC INPUT

 

The Citizen Oversight Committee meeting was advertised in each of the branches, on the library web sites and mailings to individuals that attended past branch development meetings.

 

Two individuals spoke at the Citizen Oversight Committee meeting on November 12, 2003.  One individual spoke in support of locating the Southeast branch on the campus of the Evergreen Valley College. The other speaker expressed disappointment in the selection of a site for the West Side branch and felt that more communication should have been provided earlier in the selection process.

 

CEQA

 

CEQA:  Not a project.

 

 

CONCLUSION

 

There has been significant progress made on the branch library bond projects since passage of Library Bond Measure in November 2000.   Six of our library projects are well underway and two additional projects, the expanded Evergreen and Hillview branches, have begun.  The Bond Program is on schedule and on budget. 

 

 

Timothy J. Karas, Chair

San Jose Library Commission