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HomeMy WebLinkAboutBERK Submittal_2018 0511PROPOSAL Port Townsend Public Library Level of Service Analysis SUBMITTED May 11, 2018 May 11, 2018 Melody Eisler, Library Director Port Townsend Public Library SENT VIA EMAIL RE: Port Townsend Public Library Level of Service Analysis - PROPOSAL Dear Melody: Thank you for reaching out to us to discuss this project. Further to our conversation, we have developed a scope of work and budget to support the Port Townsend Public Library (Library) in a level of service analysis. BERK recently completed a similar study for the City of Bellingham and Bellingham Public Library (BPL) through which we identified and evaluated options for a sustainable operating model to preserve, and, where desired, enhance the high quality services that the community expects from BPL. The study answered long-standing questions around the impacts of a merger with the Whatcom County Library System, finding that while costs would not change significantly for Bellingham residents, their level of service and representation related to service planning could be significantly reduced. The final report supported the City of Bellingham (through councilmanic action) and BPL in establishing a clear direction, vision, and funding strategy for library services. The City and BPL are now providing these materials to staff and community for input. Our completion of this recent study is a major advantage in that we bring a deep understanding of the policy concepts around library levels of service and funding options for libraries in Washington to this effort. This means that will be very little “getting up to speed” and we can make the most efficient use of the limited time available. We take pride in delivering level of services and funding analyses that are both comprehensive (considering important lifecycle and capital costs which are otherwise often deferred, where relevant) and forward-thinking (recognizing that a “one year snapshot” may mask the true gravity of structural revenue challenges). We look forward to discussing this project with you in detail. In the interim, more information about our firm, approach, team, and client satisfaction can be found on our website: www.berkconsulting.com. Sincerely, Brian Murphy, Principal Annie Sieger, Project Manager BERK Consulting, Inc. BERK Consulting, Inc. 1 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL The City of Port Townsend is a vibrant community of 9,000 residents on the Olympic Peninsula. The community has a strong artistic and cultural history, with Victorian seaport roots, historic theatres, art galleries, and numerous festivals including the Wooden Boat Festival, Port Townsend Film Festival, and music festivals. The Port Townsend Public Library (Library) is an important part of both the community’s history, having been established by the community itself in 1898, and in supporting the arts and culture there. The Library is now a department of the City of Port Townsend, and augments its operations through thriving partnerships with the Port Townsend School District, Jefferson County Library, and the Northwest Maritime Center and the important work of two non-profit entities dedicated to support it – Friends of the Port Townsend Library and the Port Townsend Public Library Foundation. These non-profits provide support for collections, programming, and capital projects above and beyond the City’s tax supported funding. Prior to 2008, the Library was primarily funded through City general funds, however, in August 2008, Port Townsend residents demonstrated their commitment to the Library through the overwhelming passage (by 64.7%) of a Library-dedicated levy lid lift. This levy lid lift increased Port Townsend residents property taxes by $0.75 per $1,000 of assessed value phased in between 2009 and 2011. Revenues generated at the onset of this levy were sufficient to increase hours of operation, staff presence, and acquisitions, however, because this levy rate has not increased since 2011, the revenues generated by the levy have begun to decrease because of inflation. As such, despite this dedicated levy, Library operating costs are quickly outpacing revenue growth, with operating costs expected to exceed revenues and absorb existing fund balance by 2025. Compounding this challenge is, Port Townsend, like many Washington Cities, is financially constrained by the effect of several tax-limiting measures as well as increases in operating costs that are outpacing revenue growth. Without correction, this structural imbalance will increasingly erode valued citywide services, such as the library, public safety, parks, and others. Project Understanding 2 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL Due to overall General Fund budgetary constraints, it is not expected that current general fund revenues will be available to help the Library keep up with the community’s demand for library services. Total Library funding has also been insufficient to address full capital investment needs, with a bond As a starting place to address this broader citywide challenge and prevent erosion of highly valued Library services, the City desires a strategy or strategies to correct this structural imbalance, by right-sizing library services to balance community demand and willingness to pay. It is expected that there is community desire to at a minimum preserve and likely enhance current Library services, to meet unmet needs to support all members of the community – some of whom may currently be underserved. To develop a sustainable and balanced operating strategy, cost and level of service must be evaluated together, and against the status quo. To develop an actionable strategy, the City and Library will also need to consider issues around administration, personnel, community preferences, and tax burden to fully evaluate strategies. 3 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL Project Approach TASK 1. PROJECT KICKOFF AND ONGOING PROJECT MANAGEMENT BERK staff will participate in a remote (by phone) project kick-off with the City of Port Townsend and Port Townsend Public Library’s core project team. During this kickoff, we will discuss desired outcomes from the effort, discuss relevant context of this project, review a detailed project schedule, and how we will communicate and collaborate effectively through completion of the final library funding strategies report. During this meeting, we will also identify the appropriate staff to be engaged in data collection, informant interviews, and review and vetting of the analysis, throughout the project. We find that identifying this team early and communicating information needs and expectations for all parties supports a more efficient process that is satisfying for everyone. Once identified, BERK will introduce this project and the project schedule to department leads, to determine the best ways to communicate moving forward. BERK will work collaboratively with City of Port Townsend and Port Townsend Public Library staff throughout the project, and actively engage the project team throughout the effort. BERK will also be responsible for project management and coordination to keep it moving on time and on budget, while making the most efficient use of all participants’ time. TASK 2. DEVELOP SITUATION ASSESSMENT A key step in this study will be to develop a shared understanding of the Port Townsend Public Library’s baseline characteristics, including services and fiscal position both separately and within the broader context of the City’s fiscal challenges and other service demands. This task will require collecting budget information from the City of Port Townsend and Port Townsend Public Library, as well as current service demand and provision information from the Library. In addition to reviewing operating costs and revenues, BERK will collect information on capital infrastructure needs identified by 4 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL the Library. BERK will work with the City and Library’s finance departments to ensure that the baseline financial situation is accurately captured by the analysis. BERK will conduct detailed phone interviews with a representative group of six to eight informants to better understand the Library’s fiscal position, its current service demands, how these demands might change over time, and other issues, like administration, personnel, and community preferences, that need to be understood to fully evaluate the alternatives. Using the information collected, BERK will develop a situation assessment for the Library that will clearly articulate the current policy issues and the factors that are driving both costs and revenues. As part of this, BERK will analyze demographic, financial, staffing, and expenditure information to determine relevant trends or significant changes, including service area growth, inflation, technology, and new or augmented services, that could contribute to fiscal balance issues. TASK 3. IDENTIFY LEVEL OF SERVICE OPTIONS AND EVALUATE AGAINST EXISTING FUNDING The situation assessment developed in Task 2 will identify the Library’s existing level of service and the desired level of service (as defined through informant interviews and high-level needs assessment) and compare them to the current budget level using a dynamic financial model. We will also generate an estimate of the level of service that could be maintained at existing budget levels – that is, we will estimate the degree to which revenue erosion will consequently erode level of service. Recognizing that a “one- year snapshot” may mask the true gravity of structural revenue challenges, we will compare the estimated cost of these level of service options to projected revenues over the next 10 years. The modeling will focus in detail on the short-term impacts, and will highlight significant areas of potential long-term impact, including those related to facilities and other capital needs, for the City and Library’s consideration. BERK will work collaboratively with 5 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL the project team in the development of the level of service “end points,” recognizing that there is a universe of options between the level of service possible if the existing revenue level stays the same and the desired level of service. Preliminary results of the financial analysis will be shared with project team, including an assessment of the policy implications and potential tradeoffs. The goal of this discussion will be to ensure that the analysis is reasonably capturing the financial and policy impacts of the revenues needed to implement the levels of service. TASK 4. DEVELOP FINAL OPTIONS, REPORT, AND PRESENTATION BERK will develop a draft and final Library Funding Strategy Study report summarizing findings of this work, and providing options for moving forward. The report will include: ƒServices currently provided ƒLevel of services and programs not being met with current budget ƒComparison of existing revenues against estimated operating expenses at both status quo and desired level of service, approximately 10 years into the future and service area growth, inflation, technology, and new or augmented services, recognizing that there are a universe of options that could be easily calibrated to between those two level of service “end points.” ƒRevenues needed to fill the gap between existing revenues and both status quo and desired level of service options We understand that the level of service options and the supporting analyses will be scrutinized by the interested and affected stakeholders. As such; the product must be highly readable and transparent, while communicating the underlying rigor and objectivity of the analysis. Using information design principles, schematics, color, and well-edited text, our documents are designed to effectively convey the content and findings of complex analysis to busy, non-technical audiences. PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL 6 BERK will present a summary of this study, summarizing the key finding of the analysis and providing a brief overview of contextual information, such as the study background and methodology, to the City Manager, Mayor, City Council, and the Library Advisory Board. Because this project does not include public engagement sufficient to understand the community’s willingness to pay for any of the level of service options beyond that which can be maintained by existing revenues, we’ll use that presentation as an opportunity for a facilitated discussion of the tradeoffs of the various level of service options that can inform future public engagement efforts to determine a preferred option based on the community’s level of service desires and willingness to pay. If desired, we would be happy to design and/or facilitate a community conversation or other public engagement to help determine the community’s preferred option in follow-on to this effort. Schedule TASK 4: Develop Final Options, Report, & Presentation TASK 3: Identify Level of Service Options and Evaluate Against Existing Funding TASK 1: Kick-Off & Ongoing Project Management TASK 2: Develop Situation Assessment 2018 AugustMayJuneJuly September October Final Cost Model Final Report Project Kick-off Ongoing Project Coordination & Communication Presentation Data Gathering & Analysis Develop Situation Assessment Situation Assessment Identify & Analyze Level of Service Options Develop Dynamic Model Report Development Review options with Project Team The schedule below shows the anticipated project elements over a six month timeline. However, we feel that this project could be completed in three months if the Library was interested in a shorter schedule. PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL 7 Cost Proposal We propose a total budget not to exceed $15,000, inclusive of all hourly rates and expenses. Our budget is based on our current understanding of the project and the scope of work described above. Annie Sieger, Senior Associate Natasha Dunlap, Project Associate 2018 Hourly Rate $150 $90 Task 1: Project Kick-off and Ongoing Coordination Kickoff 6 2 Ongoing project management and coordination 2 Subtotal 8 2 10 $1,380 Task 2: Situation Assessment Data collection and baseline analysis 2 6 Informant interviews (6-8)2 12 Draft and final Situation Assessment 8 16 Subtotal 12 34 46 $4,860 Task 3: Funding Strategies Develop dynamic model 16 8 Evauate level of service options 8 2 Subtotal 24 10 34 $4,500 Task 4: Recommendation, Report, and Presentation Draft and final report 10 16 Draft and final presentation 6 2 Subtotal 16 18 34 $4,020 Total Estimated Hours 60 64 124 Cost (Hours*Rate)$9,000 $5,760 $14,760 Subtotal Consultant Cost $14,760 Project Expenses @ ~2% of project budget $240 Estimated Project Total $15,000 Total Hours and Estimated Cost by Task PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL 8 9 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL Firm Qualifications ABOUT BERK CONSULTING, INC. BERK is an interdisciplinary consultancy integrating strategy, planning, and policy development; financial and economic analysis; and facilitation, design, and communications. Founded in 1988, our passion is working in the public interest, helping public and nonprofit agencies address complex challenges and position themselves for success. Our Mission is: Helping Communities and Organizations Create Their Best Futures. We do this by: ƒIntegrating the art of effective decision-making with the science of rigorous quantitative and qualitative analysis; ƒBringing people, ideas, and analysis together to generate understanding and consensus on the best strategies and decisions; and ƒBridging across disciplines to synthesize diverse information and facilitate relationships. A hallmark of our approach is our ability to communicate complex information to a wide range of audiences using words, numbers, pictures, and maps to convey information in accessible, understandable formats. We believe that when participants truly understand the issues and options before them, they are able to make good decisions, and then communicate and explain those decisions to the broader community. Approach to Project Management. Over the years, we have refined streamlined project management processes that help us deliver projects on schedule and budget, and at the highest quality. We have invested in our staff and internal management systems to enable us to plan, execute, and complete complex projects within very constrained schedules. A detailed project work plan, including information on project scope, schedule, timelines, and analyst responsibilities, is established at the outset of each project. The project team holds a kickoff meeting to align team expectations, both regarding project content and the timeline according to which various components will be completed. 10 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL Throughout the course of the project, the team meets on a regular basis to share information, adjust task sequencing as needed, discuss key project challenges, and conduct peer review of work-in- progress. Other quality assurance systems and internal controls we employ include: ƒA robust tracking system to monitor project budget and scope. ƒWeekly meetings to review key project milestones. ƒEmphasis on internal peer review of work products. National Library Experience. BERK is helping libraries across the country adapt to rapid changes in how patrons search, use, and share information and how the fundamental role of libraries is changing as our communities evolve. We combine this expertise with skillful strategic planning, staff, and community engagement and facilitation to ensure that the content of the final product and the process itself are rich, rewarding, and reflective of the unique position of our library clients. Level of Service Analysis Expertise. Cities are increasingly challenged in providing services that the community needs at a price they can afford. The key is that the characteristics of the community drive both the demand for services and provide the tax base that funds the services. The BERK approach leverages our fiscal balance framework, which holds that fiscal sustainability is based on alignment between both factors that drive costs and revenues. Key to achieving this balance is understanding the level of service desired by the community, what it costs, and how it compares to the status quo. We have expertise in assessing level of service, estimating the resources needed to achieve it, and in communicating those findings to diverse audiences, from the general public to elected officials. We bring a level of rigor and expertise to this analysis that will help build the credibility of this level of service assessment and funding study. 11 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL Staff Experience TEAM ORGANIZATION The project team will led by Annie Sieger, a Senior Associate at BERK specializing in municipal funding and financial analysis. She will be supported by Natasha Dunlap, a Project Associate at BERK. As necessary, additional resources would be made available to the project team from our staff of 23 full-time planners and analysts. More information about our Project Team is included in the following section. STAFF QUALIFICATIONS Annie Sieger (Project Manager) is a Senior Associate who focuses on policy and financial analysis, including economic impacts analysis, needs assessments, and stakeholder engagement and facilitation. Her experience includes projects for libraries across the country, as well as regional and local government agencies in the Puget Sound Region and the State of Washington. She enjoys working with communities and organizations to design processes that help answer complex policy questions. Her diverse skillset allows her to marry quantitative and qualitative analytical methods, achieving nuanced answers that respond to the question holistically. Annie recently completed the City of Bellingham on analysis of services and funding models. She worked with both the City and the Library to address questions around governance, level of service, and funding sources. She also served as the lead analyst for the San Francisco Public Library BLIP Economic Benefit Assessment and the Yavapai Library Network Return on Investment Study. Annie is a 2011 graduate of the National Education for Women’s Leadership Puget Sound Leadership Academy and a 2012 graduate of the Center for Women and Democracy’s Leadership Institute. Annie is the Chair of the City of Kent Parks and Recreation Commission. Education & Certifications ƒB.A., Political Economy and Law, University of Washington 12 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL Natasha Dunlap is a Project Associate with strong quantitative and qualitative skills including data analysis, data modeling, survey development and analysis, and project coordination. Natasha served as a supporting analyst on both the Lake Stevens Fire District and Puget Sound Regional Fire Authority Strategic Plans. She also worked with the Alderwood Water & Wastewate District on their strategic planning effort. Other strategic planning experience includes working with the Pierce County Library System, Bellevue Fire Department, and Kirkland Police Department. Natasha recently worked with the City of Bainbridge Island on the development of their Mission, Vision, and Values as part of ongoing strategic planning efforts. She is currently working with Skagit PUD on their Strategic Plan. Natasha supports the project team by taking meeting notes, providing additional facilitation support for project meetings, and developing meeting materials and summaries. Current Workload The BERK team has the capacity to complete this project on time and on budget. While we currently have other projects our team is involved with, we anticipate the team having the following availability for this project: Name May Jun Jul Aug Sept Oct Annie Sieger 35%35%40%40%40%40% Natasha Dunlap 40%40%40%40%40%40% If needed, the Library would have access to our full-time staff of 23 analysts, planners, and facilitators to support this effort. Ability to meet schedules BERK has a track record of delivering projects on time and on budget over our 30-year history. Please contact our references for specific examples of project management on those efforts. Education ƒB.A., Political Science, University of Washington 13 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL LIBRARY STUDIES City of Bellingham Library Services and Funding Models BERK worked with the City of Bellingham and Bellingham Public Library (BPL) to identify and evaluate options for a sustainable operating model to preserve, and, where desired, enhance the high quality services that the community expects from BPL (a City-governed library system). Library service and funding model options were defined through a collaborative process with the Project Team and BPL Board of Trustees after a thorough programmatic and financial assessment of BPL, which identified three main considerations for options: (1) library governance, (2) level of service, and (3) funding source (including share of funding from City of Bellingham general fund). We modeled the impacts of the baseline model (status quo) and four additional options using a custom pro forma cost model, on a 10-year time horizon. BERK also answered long-standing questions around the impacts of a merger with the Whatcom County Library System, finding that while costs would not change significantly for Bellingham residents, their level of service and representation related to service planning could be significantly reduced. We documented our results in a final report, which supported the City of Bellingham, through councilmanic action, whereby the City Council adopted one of the options, and BPL in establishing a clear direction or vision for library services and a funding strategy, that the City and BPL can now take to staff and community for input. San Francisco Public Library A Community and Economic Benefits Study of Branch Library Improvement Program In 2000, San Francisco voters approved the Branch Library Improvement Program (BLIP), a bond program to reinvest in and reinvigorate neighborhood libraries throughout the city. After 15-years and nearly $200 million in capital spending, BERK was asked to evaluate the community’s return on this investment. We evaluated the impacts BLIP had on San Francisco’s neighborhoods and the city as a whole, using both a rigorous quantitative valuation methodology and an extensive stakeholder engagement effort. Relevant Projects 14 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL The study describes benefits in four key areas: Providing a 21st Century library Experience for San Franciscans; Catalyzing Neighborhood Vitality; Preserving Resources and History; and Stimulating Economic Activity. We found that capital investments and additional operating spending associated with BLIP contributed more than $330 Million in indirect and induced benefits to the San Francisco economy. The City shared these finding with their community to communicate the value of these public facilities. Sno-Isle Libraries Capital Facility Plan BERK managed an update of the Library District’s Capital Facilities Plan, including stakeholder outreach and facilitation, demographic analysis, report design and writing, and Board presentations. We assisted the District in forming a new stakeholder group—the Sno-Isle Libraries Capital Facilities Planning Advisory Board—and designed and facilitated the Advisory Board’s meetings. Working collaboratively with staff, we finalized the Plan by synthesizing community, staff, and Advisory Board feedback and analyzing inputs to the Plan, including population projections. The Final Plan included a summary of contextual findings; population and usage trends; clear District policies and goals to guide capital decision-making; a summary of facility needs; and a funding and implementation plan for the identified capital improvements. The Seattle Public Library Foundation and the City of Seattle Office of Economic Development Economic Benefits Assessment BERK provided research, data collection, and analysis of the new Central Library’s impacts on tourism, downtown businesses, and Seattle’s economic development opportunities. The study involved design and fielding of patron surveys, financial and economic analysis of benefits, a review of comparable facilities nationally and internationally, and recommended strategies for maximizing the Library’s economic potential. 15 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL Yavapai Library Network Return on Investment Study and Strategic Plan Yavapai Library Network is a unique consortium of public, academic, K-12, and special libraries that provides technology and collection sharing services, and enhances the ability of member libraries to serve Yavapai County residents through shared resources, collaboration, and operational efficiencies. BERK supported them in developing both a Strategic Plan to provide a strategy and future direction for their organization, and a Return on Investment study to help garner support from their members, stakeholders, and governing authorities in pursuing that strategy. BERK assisted YLN in developing its first Strategic Plan, a unique document which includes a new Vision, Mission, and five-year goals and action strategies, as well as a thorough definition of member roles and responsibilities. These member agreements are helping YLN to formalize its partnerships and provide additional accountability for members. Sno-Isle/Pierce Library Cross Use Study BERK researched the reciprocal borrowing agreement between the two systems. We reviewed February 2008 cross-use data from KCLS and determined how many checkouts and holds came from patrons who live in the service area of the Sno-Isle Library District, and the Pierce County Library District. We determined the checkouts by each system in total and by KCLS branch. We prepared summary materials that included exhibits showing absolute numbers of checkouts and cross-use calculations, maps showing the percentage of cross-use at each branch — for Sno-Isle cross-use and for Pierce cross-use, and presented finding to KCLS staff. King County Library System and Renton Public Library Cross Use Study BERK researched the reciprocal borrowing agreement between the two systems. We completed data collection and application of analytic frameworks to determine levels of patron cross- use between the two systems, and the cost to each system of maintaining the reciprocal borrowing agreement. We created mapping of key findings, developed a report, and presented to library stakeholders. 16 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL OTHER PROJECT EXPERIENCE City of Tukwila Facility Needs Assessment and Feasibility Study BERK, as part of a larger consulting team, conducted the City of Tukwila’s Facility Needs Assessment and Feasibility Study. BERK supported the effort through projecting future facility needs based on population and job growth and developing potential development options to meet those needs to 2040. BERK conducted a baseline fiscal assessment of the City’s operations and is assessing funding strategies for each development option. In addition to fiscal analysis, BERK led the stakeholder engagement efforts which included facilitation of the Advisory Committee, internal engagement with City Staff, and strategic communications for the public. City of Kirkland Long Term Fiscal Analysis BERK developed a 20-year fiscal model for the City of Kirkland and potential annexation areas. Our model started with the current land base and potential future development scenarios at the parcel level. The model was flexible across the tools that cities can use to increase revenues or decrease costs. Revenues were based on tax policies (which could be adjusted by the model-user). The basis for most expenditures were labor costs, and staffing was determined according to then current levels of service. The model examined the impact of annexation on operating and maintenance, facilities, and capital infrastructure. This project also involved coordination with Kirkland Financial Department staff and the Annexation Subcommittee of the Kirkland City Council. LOCAL EXPERIENCE BERK is currently working with Jefferson County to update their 2018 Comprehensive Plan. This process involves reviewing extensive community engagement. BERK also worked with Port Townsend as part of the Washington State Ferries Reservation Pre-design effort, engaging with the community in advance of the successful launch of the system. 17 PORT TOWNSEND PUBLIC LIBRARY LEVEL OF SERVICE ANALYSIS - PROPOSAL PROJECT REFERENCES City of Bellingham Library Services and Fundign Models ƒNancy Kerr, Library Director, Bellingham Public Library, (360) 778-7221, NEKerr@COB.org City of Tukwila Facility Needs Assessment and Feasibility Study ƒDavid Cline, City Administrator, City of Tukwila, (206) 433-1850, David.Cline@TukwilaWA.gov San Francisco Public Library A Community and Economic Benefits Study of Branch Library Improvement Program ƒLuis Herrera, City Librarian, San Francisco Public Library, (415) 557-4236, citylibrarian@sfpl.org