Loading...
HomeMy WebLinkAboutR-2006-026 Yakima County Commissioners / Yakima Library District No 1 / City of Yakima Agreement of ConsiderationRESOLUTION NO. R-2006- 26 A RESOLUTION authorizing the execution of an Agreement of Consideration between the Yakima County Board of Commissioners, the Yakima Library District No. 1 Board of Trustees and the City of Yakima, setting forth the understanding that the Yakima City Council shall nominate a citizen of Yakima for presentation by the Library District to the Yakima County Commissioners for appointment to the Yakima Library District Board of Trustees. Whereas, the Yakima County Rural Library District No. 1 ("Library District"), presently operating jointly with the Yakima Public Library as the Yakima Valley Regional Library, is a rural library duly organized and existing under the laws of the State of Washington; and Whereas, the City of Yakima ("City") is a first class city with a population of less than one hundred thousand people, duly organized and existing under the laws of the State of Washington, and has continuously been affiliated with Library District providing library service to the City of Yakima and Yakima County as the Yakima Valley Regional Library since February 23, 1951; and Whereas, public library service is an important and essential service to the people of the City, assisting them to meet their information, recreation and self - education needs; and Whereas, present limitations of revenue and taxation have made it increasingly difficult for the City to maintain the present Regional Library relationship with the Library District; and Whereas, the City finds that the public interest of its citizens and the continued operation of the Library District services will be best served by the City terminating its relationship with the Regional Library and annexing to the Library District. Joining the Library District will help maintain, and potentially improve, the present quality of library service for the City; and Whereas, RCW 27.12.010, 27.12.360, 27.12.370, 27.12.380 and 27.12.390 provide a statutory process for the City's annexation to the Library District; and (jc)res/Agreement for Consideration -Library 1 Whereas, annexation would allow City taxpayers to support and utilize library services on the same basis as taxpayers in the unincorporated county; and Whereas, this agreement shall include the Yakima Public Library 4 ••••• evr J.i.. 4I, es 1 'hrearae rtin rie.i 4hn Vnleimn DiIhlin 1 ihran,'e nmm�le+n in+eros+ in 11 al 1.71G111111V 11J 1116 1.1.Ji QIr V1.7111V1 1I IV 1Ga 1.1111a 1 MV/IV 1I1./1 aI7 V VVI 11`/IV LV II1\VIVVI 11 the land and buildings known as the Yakima Downtown Library, the real property of which is legally described as follows: Lot 1 in Block 49 in the City of No. Yakima, according to the plat thereof, etc., situated in the County of Yakima, State of Washington; and Lots 2, 3, and 4, Block 49, of the City of North Yakima, according to the plat thereof on file in the office of the County Auditor of Yakima County, Washington; and Lots 5 and 6, Block 49, Town of North Yakima, now Yakima, according to the Plat thereof, recorded in Volume "A° of Plats, page 10, and re-recorded in Volume "E" of Plats, page 1, records of Yakima County, Washington. V..Lei...... 0..I.lie. 1 :4.r....e Qe...�ed ..d Tr..e.4e.eu. ihn. VnLimn v i i�.i Tiii3' ii ii -i i Q7iiI 1 ii',a -LAIC 6�13J1 ai 7 i vat 4.i JJi . i u✓is vr:i, 11 iv i i�iCGG "s GGi Regional Library Board of Trustees and the Library District Board of Trustees agree that upon the City's annexation to the Library District, there shall always be at least one resident of the City of Yakima who shall be nominated by the Yakima City Council and presented by the Library District to the Yakima County Board of Commissioners for appointment to the Library District Board of Trustees, so long as 14.. 'L.. to 4I.e. Library d ll IC City remains I tains ai hexed to the District; and Whereas, the Library District Board of Trustees and the City of Yakima recognize that the consent of the Yakima County Board of Commissioners is required to provide for the appointment of at least one resident of the City of Yakima, nominated by the Yakima City Council and presented by the Library District to the Yakima County Board of Commissioners for consideration as a member of the Board of Trustees to the Library District ; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The Mayor is authorized to execute the Agreement for Consideration between the parties named herein, recognizing the parties' agreement that upon the City's annexation to the Library District, there shall always be at least one resident of the City of Yakima who shall be nominated by the Yakima City Council and presented by the Library District to the Yakima County Board of Commissioners for appointment to the Library District Board of (jc)res/Agreement for Consideration -Library 2 Trustees, so long as the City remains annexed to the Library District, unless the Yakima County Board of Commissioners have a sound basis for opposing said appointment based upon a reasonable belief that the nominated party is unfit to serve in that position. th ADOPTED BY THE CITY COUNCIL this 28 day of February , 2006. ATTEST: David Edler, Mayor City Clerk (jc)res/Agreement for Consideration -Library 3 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 3 For Meeting Of 2/28/06 ITEM TITLE: Consideration of reports and legislation regarding a Proposed Annexation Election of the City of Yakima Public Library to the Yakima County Rural Library District No. 1, and the Disposition of Property vested in the Yakima Public Library Board of Trustees. SUBMITTED BY: City Administration Finance Department Legal Department CONTACT PERSON/TELEPHONE: Dick Zais, City Manager; # 575-6040 Cindy Epperson, Financial Services Manager; # 575-6070 Jeff Cutter, Assistant City Attorney; # 575-6030 SUMMARY EXPLANATION: History/Background: Because of the trend over the past five years of flattening municipal revenues, voter -approved initiatives that have reduced or severely restricted existing resources and increasing fixed, mandated, and contractual expenses, in 2004 the City Council appointed a committee - the Budget Strategy Team (BST) - to thoroughly review and evaluate City spending and to make recommendations on future altematives to reduce the costs of providing municipal services and to consider alternative revenue sources. The BST examined the Library's budget and the level of library service provided within the City limits as part of their review last year. Their final report was issued in September 2005 and included the recommendation that the City divest itself of the current relationship/contract with the library and place the issue of annexing to the County Library District before the voters, recognizing that this was favorable to both the Library and the City. Continued ... Resolution 1 Ordinance 1 Contract _ Other (Specify) 2 Memorandums of Understanding Funding Source 000 -General Fund—Propertv Tax Revenue APPROVED FOR SUBMITTAL: ���3� Js - City Manager STAFF RECOMMENDATION: Accept the report and enact the applicable legislation BOARD/COMMISSION RECOMMENDATION: The Council's Economic Development Committee approved this report at their February 13, 2005 meeting COUNCIL ACTION: Details regarding this item are located at the end of the agenda statement (after page 3 of 3). Page 2 of �L. Annexation would stabilize the Library's revenue stream from the City; equalize the property tax rates paid by City residents for library services with the rates paid by other County residents; narrow the existing gap between annual revenues and expenditures thereby lessening the risk of future service reductions for both the library and the City and would enable the City to redirect a portion of its levy toward reducing dependency on emergency/contingency cash reserves. Annexation would also allow the citizens to dedicate their taxes directly to library services. Additionally, part of the negotiated agreements includes the requirement that the City of Yakima would have a representative on the 5 - member county Library Board. Council approved a policy issue during the 2006 budget process to bring this issue forward, to be accomplished by meeting with the Council's Economic Development Committee (Ron Bonlender, Norm Johnson and Bill Lover) to coordinate for an election in 2006 with the Library board and management. Additionally, during the 2005 budget process, the Library proposed to buy a portion of the land that the Downtown Library is located on for $100,000 to maintain its contribution level from the City. Part of the research in preparing the legal documents for a property sale included a title search of the property and an appraisal. The title search showed that the City owned 6 of the 8 lots, and one-half of the building. After negotiations with Library management and review of the condition of the building, staff is recommending that the City sell their entire ownership in the Downtown Library for the agreed upon $100,000, even though the.., appraisal indicated the City's share of current frrent mark_t value _I.s wCI `.1 i3UGu! $513,000, so that the City is released from any potentia! cost-sharing of future capital needs of this 49 year old facility. Current Action and Proposed Legislation: At this point in time, the fiscal/legal analysis has been completed; negotiations with the Library board and management are concluded; and the Council's Economic Development Committee met and approved the details of the annexation and property transfer at their February 13, 2006 meeting. The attached documents include reports on both the annexation and sale of property, and legislation to accompboth f t The J-_.. Y a�.�,vl I Ivnai i uvu i vi i,i i�5c, ! !!r_. c��u:ur�!�i!tti iiiu!i,irje; 1. Calendar of actions necessary to complete annexation 2. Draft Fact sheet describing issues regarding library annexation 3. Financial analysis of library annexation 4. Fact sheet describing the downtown Yakima library property disposition 5. Motion ratifying Mayor's appointment of Library trustees 6. Resolution authorizing approval of Memorandum of Understanding, which describes terms of disposition of library property and other economic concems 7. Proposed Ordinance adopting annexation of City to County Rural Library District 8. Resolution of the Yakima City Council to the Yakima County Board of County Commissioners requesting a special election for City annexation 9. Resolution of the Yakima Public Library Board of Trustees recommending the City annexation to the City Council 10. Resolution authorizing an Agreement for Consideration among the City, Library Districts and Yakima Cniinty regarding Library Board representation Because the present Yakima City Council has not addressed the appointment of public library trustees during its tenure, the consideration of the issue of annexation will begin with the Mayor's ratification of the five current members of the Yakima Public Library Board of Trustees. Upon ratification, the full Council will be asked to approve the Mayor's ratification. Following this the Council will review the Public Library Trustees' resolution recommending the proposed annexation to the City Council. The Council will then consider the Ordinance initiating the annexation of the City to the Library District. Page 3 of 3 Upon approving the Ordinance, Council will then consider a Resolution requesting that the Yakima County Board of Commissioners set a special election on April 25, 2006 at which time the citizens of Yakima may vote on the library annexation issue. Finally, the Mayor will be requested to join the three library boards of trustees in signing a Memorandum of Understanding resolving the transfer of the Yakima Public Library property to the Library District for the specified consideration. Part of the negotiated terms included in the above documents is the understanding that the City and the Library will share equally in the cost of the special election regarding annexation, currently scheduled for April 25, 2006. Future Action: If the annexation vote by Yakima's citizens is favorable, the change in property taxes will be effective for the 2007 property tax levy. That levy will be set by separate action of both the Library board and City Council in November 2006 and is anticipated to have the following effects (based on 2006 assessed values): • The City of Yakima's 2007 property tax rate would drop from the current $3.38 p/$1000 assessed value to approximately $3.12 (the City will no longer assess or collect property taxes for library services). • The Library board would assess approximately .48 p/$1000 of assessed value (this includes the 32 cents p/$1000 assessed value previously collected by the City). • It is estimated that the total tax rate for Yakima citizens would increase from the current $3.38 p/$1000 assessed value to the maximum of $3.60; or approximately 22 cents per one thousand of assessed valuation (approximately 15 cents per thousand for the Library and approximately 7 cents per thousand for the City). • This equates to an annual increase of approximately $22 per each $100,000 of assessed valuation (approximately $15 for the Library and $7 for the City). Should the annexation be approved, the resulting effects on the levy rates for both the City and the Library, as described above, would be the same as in every other city in Yakima County that has recently voted to annex into the County Library District. Therefore, future Council action items would include: 1) Setting the property tax levy at the maximum allowed by law when the 2007 levy is before Council in November 2006 to accomplish the BST objective of narrowing the existing gap between annual revenues and expenditures thereby lessening the risk of future service reductions for both the City and the Library and would allow the City to redirect a portion of its levy toward reducing dependency on emergency/contingency cash reserves; and 2) Nominating a Library Board member when necessary, in conjunction with the expiration of current member terms. Recommendation: The Council's Economic Development Committee approved this report at their February 13, 2006 meeting and recommended full Council consideration and authorization of all legal documents herein and action by City Council in November 2006 to set the City's 2007 property tax levy at it's new maximum rate of approximately $3.12 p/$1000 of assessed value (assuming a successful library annexation vote). FEBRUARY 28, 2006 COUNCIL ACTION: A. Calendar of actions necessary to complete annexation Monica Weyhe, Director of the Yakima Valley Regional Library system, advised they are anticipating holding a special election April 25. B. Draft fact sheet describing issues regarding library annexation Monica Weyhe described the annexation strategy as an alternate funding source for the City. Funds would be shifted from the General Fund property tax to the library levy rate (about $.15 per thousand) of assessed property valuation. Without this alternative funding source, the branch libraries at the Southeast Community Center and on Summitview will be at risk for closure. C. Financial analysis of library annexation Cindy Epperson, Financial Services Manager, advised that the City's levy rate would be reduced and the library's rate would increase on assessed property valuation. D. Fact sheet describing the downtown Yakima library property disposition The County library district offers to pay the City $100,000 for the library facility to obtain a clear title on the building and the land. E. Motion ratifying Mayor's appointment of Library trustees Action: Motion ratified F. Resolution authorizing approval of Memorandum of Understanding describing terms of disposition of library property and other economic concerns Action: Resolution adopted. RESOLUTION NO. R-2006-24 G. Proposed Ordinance adopting annexation of City to County Rural Library District Action: Ordinance adopted. ORDINANCE NO. 2006-05 H. Resolution of the Yakima City Council to the Yakima County Board of County Commissioners requesting a special election for City annexation Action: Resolution adopted. RESOLUTION NO. R-2006-25 I. Resolution of the Yakima Public Library Board of Trustees recommending the City annexation to the City Council No action necessary by the City J. Resolution authorizing execution of agreement between the City, Library Districts and Yakima County regarding Library Board representation Action: Resolution adopted. RESOLUTION NO. R-2006-26 At the request of the Library Director, the Council will hold a public hearing on March 21, 2006 to allow them to take a position on this issue, if desired, and permit further public comment. Annexation Calendar (Reverse) for April 2006 General/special election Ballots Mailed County Auditor County Commissioners County Library Board City Council City Council City Library Board YAKIMA Connecting VALLEY people REGIONAL and LIBRARY ideas. Special election on April 25, 2006; certified April 15, 2006 April 5 Ordinance calling for a special election must be received by March 10, 2006. Resolution calling for a special election. The last agenda date is March 7th' request for agenda due March 1; documents and public notice due by March 2"d Review Ordinance from the City requesting the special election; Concurring Resolution passed by the Rural County Library Board no later than February 28 Ordinance stating intent to annex to/ join the Library District and Resolution requesting a special election no later than February 28th. Ratify current Yakima Public Library Board of Trustees no later than Feb. 28th (so they can make recommendations re: a) real property; b) annexation; and c) then sunset upon annexation). Resolution recommending proposed annexation; Public hearing and Resolution to transfer Downtown Library property; Ordinance and resolution before the city must be reviewed and recommended by the City Library Board on Feb. 27th. County Library Board Agreement and Resolutions concurring in property transfer, and t/ appointment of Trustee, annexation Regional Library Board and special election on Feb. 27th. 102 N Third Street • Yakima WA 98901 • 509.452.8541 • Fax 509.575.2093 • www.yvrls.lib.wa.us Buena Granger Harrah Mabton Moxee Naches Nile Selah Southeast Yakima Summitview Sunnyside Terrace Heights Tieton Toppenish Union Gap Wapato White Swan Yakima Zillah Library Annexation Analysis: 2005 2006 2007* $13,660,632 $14,099,086 Assuming Library and City Assess Statutory Maximum $13,030,436 Net Change 2006 vs 2007 City's Levy - Dollar Amount - Rate p/$1000 AV $3.44 $3.38 $3.125 Based on assessed value of: $ 3,971,667,847 $ 4,169,739,611 $ 4,169,739,611 City's Contribution to Library $1,414,107 $1,314,107 n/a Approx. rate p/$1000 AV $0.36 $0.32 City: Net Prop.Tax Rev. Available to City: $12,246,525 $12,784,979 $245,457 Library: Library's Levy - Dollar Amount n/a n/a $1,980,626 $666,519 - Rate p/$1000 AV $0.475 Total Levy Rate to Taxpayers: $3.44 $3.38 $3.60 ( rate p/$1000 AV) Difference in Levy Rate $0.22 $911,977 * This represents the options related to the Library Annexation assuming the same Assessed Valuation and Levy Rates as proposed in 2006. The 2007 levy will likely look different because of changes in these underlying values. 2006 Projects - Library Annexation Library Annex Impact on Property Tax 2/24/2006