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
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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.
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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
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$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
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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