HomeMy WebLinkAboutMINUTES - 08162011 - C.31RECOMMENDATION(S):
WATCH Assembly Bill 438 (Williams): County Free Libraries: Withdrawal: Use of
Contractors, a bill that imposes specified requirements if the legislative body of a city or the
board of trustees of a library district intends to withdraw from the county free library system
and operate the city's or district's library or libraries with a private contractor, as
recommended by the Legislation Committee.
FISCAL IMPACT:
No impact on the County General Fund.
BACKGROUND:
Background and Existing Law
Exactly one century ago, the Legislature authorized counties to establish county free library
systems (SB 289, Hans, 1911). Before Proposition 13 (1978), a county could levy a
separate property tax rate to support its library system. Nearly 30 county free libraries had
separate rates. A county could extend the property tax rate to parcels in a city that wanted to
join the library system and would cease to levy the rate within a city that withdrew from the
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 08/16/2011 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Gayle B. Uilkema, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: L. DeLaney,
925-335-1097
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: August 16, 2011
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C.31
To:Board of Supervisors
From:Legislation Committee
Date:August 16, 2011
Contra
Costa
County
Subject:WATCH AB 438 (Williams): County Free Libraries: Withdrawal: Use of Contractors
system.
After Proposition 13, the Legislature divided the remaining property tax revenues among
local governments. Although they were not separate institutions, state law treated county
free libraries as if they were special districts because they had their own property tax rates
before Proposition 13. The county free libraries received shares of the property tax revenues
and they could receive money from the Special District Augmentation Fund (AB 8, L.
Greene, 1979). In general, to withdraw from a county library system, a city must negotiate
the amount of property tax revenues, if any, that it will receive from the county library
system. Different procedures apply to city withdrawals from county free library systems in
Los Angeles and Riverside counties (AB 1998, Mountjoy, 1996 and AB 927, Thompson,
1997).
Instead of participating in a county free library system, a city can provide library services to
its residents in several other ways: by operating its own libraries, through a library district,
or by contracting with another public agency or private firm. For charter cities, contracting
arrangements with private firms can be governed by their charters. General law cities must
follow the standards and procedures in the state statutes. While general law cities' specific
statutory authority to contract for services is limited, court opinions have recognized general
law cities' authority to enter into contracts to carry out necessary functions, including those
expressly granted and those implied by necessity.
State law requires state departments that contract for personal services to follow specific
criteria: a clear demonstration of cost savings, a clear definition of costs, ensuring that work
will not be contracted out solely on the basis of lower pay or benefits, and justification of
savings based on the contract's size and duration. State law requires school and community
college districts to comply with the same standards that apply to state departments (AB
1419, Alarcon, 2002).
Riverside County and the Cities of Camarillo (Ventura County), Moorpark (Ventura
County), Redding (Shasta County), and Santa Clarita (Los Angeles County) contract with a
private corporation, Library Systems and Services, Inc. (LSSI), for library services. In
response to some cities' recent efforts to contract with LSSI, some library advocates and
labor unions want the conditions that apply to state, school district, and community college
district service contracts to apply to any city that intends to withdraw from a county free
library system and contract with a private firm for library services.
BACKGROUND: (CONT'D)
Proposed Law
If the legislative body of a city or the board of trustees of a library district intends to
withdraw from the county free library system and operate the city or district's library with
a private contractor that will employ library staff to achieve cost savings, Assembly Bill
438 imposes requirements relating to: Public notice, Demonstrated cost savings, Wages
and benefits, Employee displacement, Cost fluctuations, Contract scope and duration,
Competitive bidding, Staff qualifications and hiring, Economic risk, Eligible contractors,
Contract termination, Public interest, Contractor disclosure and performance
measurement
AB 438 specifies that its requirements do not apply if the city or district library or
libraries are funded only by the proceeds of a special tax imposed by the city or district,
pursuant to state law.
I. Public notice. AB 438 requires the legislative body of the city or the board of trustees
of the library district to publish a notice of the contemplated action, giving the date and
place of the meeting at which the contemplated action is proposed to be taken. The notice
must be published at least once a week for four consecutive weeks before the city or
library district acts.
II. Demonstrated cost savings. AB 438 requires the legislative body of a city or the board
of trustees of a library district to clearly demonstrate that the contract will result in actual
overall cost savings to the city or library district, provided that, in comparing costs, all of
the following occur: The city or library district's additional cost of providing the same
services as proposed by the contract must be included. These additional costs include the
salaries and benefits of additional staff that would be needed and the cost of additional
space, equipment, and materials needed to perform the necessary functions of the library.
The city or library district's indirect overhead costs must not be included unless those
costs can be attributed solely to the function in question and would not exist if that
function was not performed by the city or library district. "Indirect overhead costs" means
the pro rata share of existing administrative salaries and benefits, rent, equipment costs,
utilities, and materials.
The cost of a contractor providing a service for any continuing city or library district
costs that would be directly associated with the contracted function must be included.
Continuing city or library district costs include costs for inspection, supervision, and
monitoring.
III. Wages and benefits. AB 438 prohibits city or library district officials from approving
a contract solely on the basis that savings will result from lower contractor pay rates or
benefits. Contracts are eligible for approval if the contractor's wages are at the industry's
level and do not undercut city or library district pay rates.
IV. Employee displacement. AB 438 prohibits a contract from causing the displacement
of city or library district employees. Displacement includes layoff, demotion, involuntary
transfer to a new classification, involuntary transfer to a new location requiring a change
of residence, and time base reductions. Displacement does not include changes in shifts or
days off, nor does it include reassignment to other positions within the same classification
and general location or employment with the contractor, so long as wages and benefits
are comparable to those paid by the city or library district.
V. Cost fluctuations. AB 438 requires that a contract's overall cost savings must be large
enough to ensure that the savings will not be eliminated by cost fluctuations that could
normally be expected during the contracting period.
VI. Contract scope and duration. AB 438 requires that the overall cost savings of a
contract must clearly justify the scope and duration of the contract.
VII. Competitive bidding. AB 438 requires that a contract must be awarded through a
publicized, competitive bidding process.
VIII. Staff qualifications and hiring. AB 438 requires a contract to include specific
provisions pertaining to the qualifications of the staff that will perform the work under
the contract, as well as assurances that the contractor's hiring practices meet applicable
nondiscrimination standards.
IX. Economic risk. AB 438 requires that the potential for future economic risk to the city
or library district from potential contractor rate increases must be minimal.
X. Eligible contractors. AB 438 requires a contract to be with a "firm," which means a
corporation, limited liability company, partnership, nonprofit organization, or sole
proprietorship.
XI. Contract termination. AB 438 requires a contract to provide that it may be terminated
at any time by the city or library district without penalty if the contractor fails to perform
and notice is provided within 30 days of termination.
XII. Public interest. AB 438 prohibits the potential economic advantage of the contract
from being outweighed by the public's interest in having a particular function performed
directly by the city or library district.
XIII. Contractor disclosure and performance measurement. If the contract is for library
services in excess of $100,000 annually, AB 438 requires: A city or library district must
require a contractor to disclose the following information as part of its bid, application, or
answer to a request for proposal:
• A description of all charges, claims, or complaints filed against the contractor with any
federal, state, or local administrative agency during the prior 10 years.
• A description of all civil complaints filed against the contractor in any state or federal
court during the prior 10 years.
• A description of all state or federal criminal complaints or indictments filed against the
contractor, or any of its officers, directors, or managers, at any time.
• A description of any debarments of the contractor by any public agency or licensing
body at any time.
The city or library district must include in the contract specific, measurable performance
standards and provisions for a performance audit by the city or library district, or an
independent auditor approved by the city or library district, to determine whether the
performance standards are being met and whether the contractor is in compliance with
applicable laws and regulations. The bill prohibits a city or library district from renewing
or extending the contract before receiving and considering the audit report.
The contract must include provisions for an audit by the city or library district, or an
independent auditor approved by the city or library district, to determine whether and to
what extent the anticipated cost savings have been realized. The bill prohibits a city or
library district from renewing or extending the contract prior to receiving and
considering the audit report.
Assembly Bill 438 declares that it does not preclude a city, library district, or local
government from adopting more restrictive rules regarding the contracting of public
services.
The Legislation Committee considered this bill at its July 28, 2011 meeting and
recommends a position of "Watch," to the Board of Supervisors.
STATUS: Senate Third Reading File
SUPPORT: Central Coast Alliance United for a Sustainable Economy (co-source),
Ventura Reader's Book Group (co-source), American Library Association Student
Chapter at UCLA, Assistant Director, Public Services for the County of Los Angeles
Public Library, California Professional Firefighters, City of Arcata Councilmember,
Shane Brinton, City of Artesia Councilmember, Michele Diaz, City of Irvine
Councilmember, Steven Choi, Community Coalition Concerned Citizens, Coalition of
Stockton Democratic Alliance for Action, Santa Clarita Democratic Party of the San
Fernando Valley, Friends of Bell Foundation, Friends of the Artesia Library, Treasurer
Friends of the Hollydale Library, Friends of the Huntington Park Library, Friends of the
Nevada County Libraries, Los Angeles Alliance for a New Economy, Los Angeles
County Democratic Party, Los Angeles Youth Council Chapter, The Multi-Taskers,
County Democratic Party, Los Angeles Youth Council Chapter, The Multi-Taskers,
Montebello Friends of the Library, Santa Clara Valley Democratic Club, Santa Clarita
Organization for Planning and the Environment, Santa Clarita Valley Fair Election
Committee
OPPOSITION : Association of California Cities, Orange County, California Contract
Cities Association, California Chamber of Commerce, Cities of Artesia, Bellflower,
Beverly Hills, Brea, Camarillo, Carlsbad, Cerritos, Chino, Cloverdale, Costa Mesa,
Culver City, Danville, Diamond Bar, Galt, Goleta, Fillmore, Healdsburg, Highland,
Holtville, Huron, Imperial Beach, Inglewood, Irvine, La Verne, Lake Elsinore,
Lakewood, Lathrop, Lemoore, Livermore, Livingston, Lodi, Lynwood, Manteca,
Merced, Montclair, Moreno Valley, Moorpark, Mt. Shasta, Murrieta, Norwalk, Palmdale,
Paradise, Rancho Cordova, Redding, Rosemead, San Clemente, San Leandro, San Pablo,
Santa Clarita, Santa Maria, Santa Rosa, Selma, Signal Hill, Simi Valley, South El Monte,
Temecula, Torrance, Tracy, Tulare, Union City, Visalia, Vista, Wasco, West Hollywood,
and Windsor, City of Arcata Councilmember, Mark Wheetley, Friends of Redding
Library, Friends of the Camarillo Library, Howard Jarvis Taxpayers Association, League
of California Cities, Library Systems & Services, LLC Mayor of Fresno, Ashley
Swearengin, Mayor of Pico Rivera, David Armenta, Mayor of Redwood City, Jeff Ira,
Shasta Public Library Foundation
CONSEQUENCE OF NEGATIVE ACTION:
There would be no consequence if the Board chose not to "Watch" this bill other than not
being on record with a position on the bill.
CHILDREN'S IMPACT STATEMENT:
None.
ATTACHMENTS
AB 438 (Williams) bill text
AMENDED IN SENATE JULY 12, 2011
AMENDED IN SENATE JUNE 27, 2011
AMENDED IN ASSEMBLY JUNE 1, 2011
AMENDED IN ASSEMBLY MAY 27, 2011
AMENDED IN ASSEMBLY APRIL 4, 2011
AMENDED IN ASSEMBLY MARCH 29, 2011
AMENDED IN ASSEMBLY MARCH 16, 2011
california legislature—2011–12 regular session
ASSEMBLY BILL No. 438
Introduced by Assembly Member Williams
(Coauthor: Assembly Member Fuentes)
February 14, 2011
An act to amend Sections 19104 and 19116 of, and to add and repeal
Section 19104.5 to of, the Education Code, relating to libraries.
legislative counsel’s digest
AB 438, as amended, Williams. County free libraries: withdrawal:
use of private contractors.
Existing law provides that the county boards of supervisors may
establish and maintain, within their respective counties, county free
libraries pursuant to specified provisions of law. Existing law provides
that the board of trustees, common council, or other legislative body of
any city or the board of trustees of any library district may, on or before
January 1st of any year, notify the county board of supervisors that the
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city or library district no longer desires to be a part of the county free
library system, as specified.
This bill would impose specified requirements if the board of trustees,
common council, or other legislative body of a city or the board of
trustees of a library district intends to withdraw from the county free
library system and operate the city’s or library district’s library or
libraries with a private contractor that will employ library staff to
achieve cost savings, unless the library or libraries are funded only by
the proceeds of a special tax imposed by the city or library district.
These requirements, until January 1, 2014, would include, but not be
limited to, publishing notice of the contemplated action in a specified
manner, clearly demonstrating that the contract will result in actual
overall cost savings to the city or library district, prohibiting the contract
from causing the displacement of city or library district employees, and
imposing specified requirements on contracts for library services in
excess of $100,000 annually. The bill would also provide that its
provisions do not preclude a city, library district, or local government
from adopting more restrictive rules regarding the contracting of public
services.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
The people of the State of California do enact as follows:
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SECTION 1. Section 19104 of the Education Code is amended
to read:
19104. (a) The board of trustees, common council, or other
legislative body of a city or the board of trustees of a library district
may, on or before January 1 of any year, notify the county board
of supervisors that the city or library district no longer desires to
be a part of the county free library system. The notice shall be
accompanied by a statement complying with the requirements of
Chapter 8 (commencing with Section 54900) of Part 1 of Division
2 of Title 5 of the Government Code. The clerk of the board of
supervisors shall file the statement with the county assessor and
the State Board of Equalization. Thereafter the city or library
district shall cease to participate in the benefits of the county free
library system, and the property situated in the city or library
district shall not be liable for taxes for county free library purposes.
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(b) If the board of trustees, common council, or other legislative
body of a city or the board of trustees of a library district intends
to withdraw from the county free library system and operate the
city’s or the district’s library or libraries with a private contractor
that will employ library staff to achieve cost savings, the
requirements of Section 19104.5 shall apply, unless the library or
libraries are funded only by the proceeds of a special tax imposed
by the city or library district pursuant to Article 3.5 (commencing
with Section 50075) of Chapter 1 of Part 1 of Division 1 of Title
5 of the Government Code.
SEC. 2. Section 19104.5 is added to the Education Code, to
read:
19104.5. (a) If the board of trustees, common council, or other
legislative body of a city or the board of trustees of a library district
intends to withdraw from the county free library system and operate
the city’s or the district’s library or libraries with a private
contractor that will employ library staff to achieve cost savings,
all of the following requirements shall apply:
(1) At least once a week for four consecutive weeks prior to
taking any action, the board of trustees, common council, or other
legislative body of the city or the board of trustees of the library
district shall publish, in a newspaper designated by it and circulated
throughout the city or library district, notice of the contemplated
action, giving the date and place of the meeting at which the
contemplated action is proposed to be taken.
(2) The board of trustees, common council, or other legislative
body of a city or the board of trustees of a library district shall
clearly demonstrate that the contract will result in actual overall
cost savings to the city or library district, provided that, in
comparing costs, all of the following occur:
(A) The city or library district’s additional cost of providing the
same services as proposed by the contract shall be included. These
additional costs shall include the salaries and benefits of additional
staff that would be needed and the cost of additional space,
equipment, and materials needed to perform the necessary functions
of the library.
(B) The city or library district’s indirect overhead costs shall
not be included unless those costs can be attributed solely to the
function in question and would not exist if that function was not
performed by the city or library district. For purposes of this
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subparagraph, “indirect overhead costs” means the pro rata share
of existing administrative salaries and benefits, rent, equipment
costs, utilities, and materials.
(C) The cost of a contractor providing a service for any
continuing city or library district costs that would be directly
associated with the contracted function shall be included.
Continuing city or library district costs shall include, but not be
limited to, costs for inspection, supervision, and monitoring.
(3) The contract shall not be approved solely on the basis that
savings will result from lower contractor pay rates or benefits.
Contracts shall be eligible for approval if the contractor’s wages
are at the industry’s level and do not undercut city or library district
pay rates.
(4) The contract shall not cause the displacement of city or
library district employees. Displacement includes layoff, demotion,
involuntary transfer to a new classification, involuntary transfer
to a new location requiring a change of residence, and time base
reductions. Displacement does not include changes in shifts or
days off, nor does it include reassignment to other positions within
the same classification and general location or employment with
the contractor, so long as wages and benefits are comparable to
those paid by the city or library district.
(5) The overall cost savings of the contract shall be large enough
to ensure that the savings will not be eliminated by private sector
and city or library district cost fluctuations that could normally be
expected during the contracting period.
(6) The amount of the overall cost savings of the contract shall
clearly justify the scope and duration of the contract.
(7)
(3) The contract shall be awarded through a publicized,
competitive bidding process.
(8)
(4) The contract shall include specific provisions pertaining to
the qualifications of the staff that will perform the work under the
contract, as well as assurances that the contractor’s hiring practices
meet applicable nondiscrimination standards.
(9) The potential for future economic risk to the city or library
district from potential contractor rate increases shall be minimal.
(10)
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(5) The contract shall be with a firm. For purposes of this
paragraph, a “firm” means a corporation, limited liability company,
partnership, nonprofit organization, or sole proprietorship.
(11)
(6) The contract shall provide that it may be terminated at any
time by the city or library district without penalty if the contractor
fails to perform and notice is provided within 30 days of
termination.
(12) The potential economic advantage of the contract shall not
be outweighed by the public’s interest in having a particular
function performed directly by the city or library district.
(13)
(7) If the contract is for library services in excess of one hundred
thousand dollars ($100,000) annually, all of the following shall
occur:
(A) The city or library district shall require the contractor to
disclose all of the following information as part of its bid,
application, or answer to a request for proposal:
(i) A description of all charges, claims, or complaints filed
against the contractor with any federal, state, or local administrative
agency during the prior 10 years.
(ii) A description of all civil complaints filed against the
contractor in any state or federal court during the prior 10 years.
(iii) A description of all state or federal criminal complaints or
indictments filed against the contractor, or any of its officers,
directors, or managers, at any time.
(iv) A description of any debarments of the contractor by any
public agency or licensing body at any time.
(B) The city or library district shall include in the contract
specific, measurable performance standards and provisions for a
performance audit by the city or library district, or an independent
auditor approved by the city or library district, to determine
whether the performance standards are being met and whether the
contractor is in compliance with applicable laws and regulations.
The city or library district shall not renew or extend the contract
prior to receiving and considering the audit report.
(C) The contract shall include provisions for an audit by the
city or library district, or an independent auditor approved by the
city or library district, to determine whether and to what extent the
anticipated cost savings have actually been realized. The city or
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library district shall not renew or extend the contract before
receiving and considering the audit report.
(8) The term of the contract shall not be more than two years
from the date on which the board of trustees, common council, or
other legislative body of a city or the board of trustees of a library
district approves the contract.
(b) This section does not preclude a city, library district, or local
government from adopting more restrictive rules regarding the
contracting of public services.
(c) This section shall remain in effect only until January 1, 2014,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2014, deletes or extends that date.
SEC. 3. Section 19116 of the Education Code is amended to
read:
19116. (a) (1) Sections 19104 and 19105 are not applicable
to the withdrawal of a city or library district from the county free
library system in Los Angeles County or Riverside County. The
legislative body of a city or the board of trustees of a library
district, whose jurisdiction is within the County of Los Angeles
or the County of Riverside, may notify the board of supervisors
for Los Angeles County or Riverside County, as appropriate, that
the city or library district no longer desires to be a part of the
county free library system. The notice shall state whether the city
or library district intends to acquire property pursuant to
subdivision (c). The board of supervisors shall transmit a copy of
the notice to the Los Angeles County Assessor or Riverside County
Assessor, as appropriate, the Los Angeles County Auditor or
Riverside County Auditor, as appropriate, and the State Board of
Equalization.
(2) If the city’s legislative body or the library district’s board
of trustees intends to withdraw from the county free library system
and operate the city’s or the district’s library or libraries with a
private contractor that will employ library staff to achieve cost
savings, the requirements of Section 19104.5 shall also apply,
unless the library or libraries are funded only by the proceeds of
a special tax imposed by the city or library district pursuant to
Article 3.5 (commencing with Section 50075) of Chapter 1 of Part
1 of Division 1 of Title 5 of the Government Code.
(b) When a city or library district files a notice pursuant to
subdivision (a), it shall remain a member of the county free library
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system until July 1 of the base year or the date on which property
is transferred pursuant to subdivision (c), whichever date is later.
Upon ceasing to be a member of the county free library system,
the city or library district shall not participate in any benefits of
the county free library system, and shall assume the responsibility
for the provision of library services within its jurisdiction. Unless
otherwise agreed by July 1 of the base year in writing by the Board
of Supervisors of Los Angeles County or the Board of Supervisors
of Riverside County, as appropriate, and the withdrawing city or
library district, an amount of property tax revenue equal to the
property tax revenues allocated to the county free library pursuant
to Article 2 (commencing with Section 96) of Chapter 6 of Part
0.5 of Division 1 of the Revenue and Taxation Code in the fiscal
year prior to the base year and that were derived from property
situated within the boundaries of the withdrawing entity shall be
allocated to and used to maintain library services by the
withdrawing entity in the base year and, adjusted forward, in each
fiscal year thereafter at the same time allocations are made pursuant
to Article 2 (commencing with Section 96) of Chapter 6 of Part
0.5 of Division 1 of the Revenue and Taxation Code. This
subdivision shall not apply to property tax revenues that have been
pledged to repay bonded indebtedness of the county free library
system.
(c) If there are one or more county library facilities within the
territorial boundaries of the withdrawing entity at the time the
withdrawing entity provides notice pursuant to subdivision (a),
the withdrawing entity shall have the right to acquire any or all of
those facilities from the county and the county shall, no later than
July 1 of the base year, transfer to the withdrawing entity each
facility to be acquired and the personal property therein related to
the provision of library services. If the facility or personal property
was purchased with bond proceeds or other forms of indebtedness,
acquisition shall only take place if the withdrawing entity assumes
any remaining indebtedness and in no way impairs the repayment
thereof. If the withdrawing entity opts not to acquire any facilities
or personal property, the county at its discretion may dispose of
the facilities or personal property or convert the use of those
facilities or personal property, including transferring collections
and other personal property to other sites and converting facilities
to other purposes. If the withdrawing entity opts to acquire any
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facilities or personal property, the acquisition prices shall be as
follows unless otherwise provided for by statute or contract:
(1) Each county library facility which, for purposes of this
section, shall include the real property upon which the facility is
located and any fixtures therein and shall not include computer
systems and software, shall be transferred for the lesser of:
(A) No cost, if the facility was donated to the county by the
withdrawing entity.
(B) The price paid to the withdrawing entity by the county for
the facility, if the county bought the facility from the withdrawing
entity. However, if the county constructed capital improvements
to the facility after it was bought from the withdrawing entity, the
county’s total out-of-pocket costs for the capital improvement
excluding any costs for routine repairs, restoration, or maintenance,
shall be added to the price.
(C) The fair market value of the facility. However, if any portion
of the facility was donated to the county by the withdrawing entity
or if any moneys were donated by the withdrawing entity toward
the county’s construction or acquisition of the facility or any
portion thereof, the value of the donation shall be subtracted from
the fair market value.
(2) Any personal property within the facility related to the
provision of library services, including books and resource
materials, computer systems and software, furniture, and
furnishings, shall be transferred for the lesser of:
(A) No cost, if the property was donated to the county by the
withdrawing entity.
(B) The fair market value of the personal property. However,
on or before the March 1 preceding the July 1 of the base year, the
county librarian may designate collections of resource books and
materials that are unique in, and integral to, the county free library
system to be special collections. The special collections shall be
acquired by the withdrawing entity only upon mutually agreeable
terms and conditions.
(d) If a facility transferred pursuant to subdivision (c) serves
residents of surrounding jurisdictions, the board of supervisors
governing the county free library system may require, as a
condition of transferring the facility, that the library services
provided by the withdrawing entity to its residents also be available
on the same basis to the residents of the surrounding jurisdictions.
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— 8 —AB 438
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However, if the withdrawing entity contributes to the provision of
library services from other city funds, or through taxes,
assessments, or fees of its residents, the withdrawing entity may
provide additional services to its residents. If the requirement to
provide regional services is imposed and, unless otherwise agreed
in writing by the county and the withdrawing entity by July 1 of
the base year, an amount of property tax revenues equal to the
property tax revenues derived from property situated in the
surrounding jurisdictions that were, in the fiscal year before the
base year, allocated to the county free library system pursuant to
Article 2 (commencing with Section 96) of Chapter 6 of Part 0.5
of Division 1 of the Revenue and Taxation Code shall be allocated
to and used to maintain library services by the withdrawing entity
in the base year and, adjusted forward, in each fiscal year thereafter
at the same time other allocations are made pursuant to Article 2
(commencing with Section 96) of Chapter 6 of Part 0.5 of Division
1 of the Revenue and Taxation Code. This subdivision shall not
apply to property tax revenues that have been pledged to repay
bonded indebtedness. If a surrounding jurisdiction subsequently
provides notice of its intent to withdraw from the county free
library system pursuant to subdivision (a), on the date the
surrounding jurisdiction ceases to participate in the benefits of the
county free library system pursuant to subdivision (b), the
withdrawing entity shall no longer be required to make library
services available to the residents of the surrounding jurisdiction
and property tax revenues derived from property situated in the
surrounding jurisdiction shall no longer be allocated to the
withdrawing entity pursuant to this subdivision.
(e) For purposes of this section, the following terms are defined
as follows:
(1) “Base year” means the fiscal year commencing on the July
1 following the December 2 following the date of the notice given
pursuant to subdivision (a) of this section.
(2) “Fair market value” means:
(A) Any value agreed upon by the withdrawing entity and the
county.
(B) If no agreement as to value is reached by the March 1
preceding the July 1 of the base year, the value assigned by an
appraiser agreed upon by the withdrawing entity and the county.
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(C) If no agreement as to the appointment of an appraiser is
reached pursuant to subparagraph (B) by the April 1 preceding the
July 1 of the base year, the value assigned by an appraiser agreed
upon between the withdrawing entity’s appraiser and the county’s
appraiser.
(D) If no agreement as to the appointment of an appraiser is
reached pursuant to subparagraph (C) by the May 1 preceding the
July 1 of the base year, the value assigned by a state-certified
appraiser designated by the withdrawing entity. The designated
appraiser shall provide the appraisal in writing to the county no
later than the June 1 preceding the July 1 of the base year.
(E) The withdrawing entity shall reimburse the county for any
appraisal costs the county incurs in determining the fair market
value pursuant to this section.
(3) “Surrounding jurisdictions” means cities and library districts
that are adjacent to the withdrawing entity and tax rate areas in
unincorporated areas of the county that are wholly or partially
within the withdrawing entity’s sphere of influence, that are within
the county free library system, and that have no facility within
their territorial boundaries providing library services at the time
the withdrawing entity provides notice pursuant to subdivision (a).
O
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— 10 —AB 438