Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  21-000759

 

MEETING DATE:

11/16/21

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

OC Community Resources   (Approved)

Department contact person(s):

Dylan Wright (714) 480-2788 

 

 

Julie Quillman (714) 566-3086

 

 

Subject:  Adopt Revised OC Public Libraries Fee Schedule

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Resolution to Form

Public Hearing

 

 

3 Votes Board Majority

 

 

 

    Budgeted: Yes

Current Year Cost: N/A

Annual Cost: N/A

 

 

 

    Staffing Impact:

No

# of Positions:

Sole Source: No

    Current Fiscal Year Revenue: See Financial Impact Section

  Funding Source: OC Public Libraries Fund 120: 100%

County Audit in last 3 years: No

 

 

    Prior Board Action: 03/13/2018 #31, 11/19/2002 #15, 06/06/1995 #73, 09/24/1991 #79

 

RECOMMENDED ACTION(S):

 

 

1.

Conduct a Public Hearing

 

 

 

2.

Adopt a Resolution that:

 

 

a.

Rescinds the fee and fine schedule for OC Public Libraries, which was adopted pursuant to Resolution No. 18-039.

 

 

b.

Adopts a fee schedule for OC Public Libraries, which is attached thereto as Attachment A.

 

 

c.

Finds that the fees in the proposed fee schedule fall within the exceptions set forth in Article XIII C, section 1, subdivisions (e)(1) and (2), of the California Constitution and are therefore excepted from the definition of a tax as used in that section. 

 

 

d.

Finds that the fees in the proposed fee schedule do not exceed the reasonable cost of providing the services for which the fees are levied and are not levied for general revenue purposes.

 

 

e.

Finds that the fees listed herein are statutorily exempt from compliance with the requirements of CEQA under California Public Resources Code section 21080(b)(8) and Title 14 of the California Administrative Code, Section 15273 because they are for the purpose of meeting operating expenses, and purchasing supplies, equipment and materials.

 

 

 

 

 

SUMMARY:

 

Adoption of the revised OC Public Libraries Fee Schedule will allow OC Public Libraries to eliminate overdue fines and obsolete fees.

 

 

 

BACKGROUND INFORMATION:

 

The principal focus of the revised OC Community Resources/OC Public Libraries' (OC Libraries) Fee Schedule (Fee Schedule) is to eliminate fines and fees that are no longer valid due to legacy practices within the library community. The original Fee Schedule (Resolution 91-1122) was adopted by the Board of Supervisors (Board) on September 24, 1991, and was revised by the Board on June 6, 1995 (Resolution 95-385). On November 19, 2002, the Board approved a repeal and reduction of the fee schedule. On March 13, 2018, the Board approved a revised fee schedule (Resolution 18-039).

 

The Auditor-Controller's Office conducted a fee study September 13, 2021, to calculate the impact of collecting overdue fines and collection agency referral fees. OC Public Libraries has evaluated the economic and behavioral impacts of collecting these fines and fees and is proposing that eliminating them aligns with the current library philosophy of reducing barriers to access and to reduce staff cost to process the fines.

 

The American Library Association passed a resolution in 2019 that asserts library fines create an economic barrier to access of library materials and services and urges libraries to actively move toward eliminating fines. On March 24, 2021, the California Legislature passed House Resolution 31 that recommends cities, counties and special districts throughout the state consider abolishing late fines, as a way to increase access for people in their communities who need the library the most.

 

In recent years, large urban systems across the state, such as San Francisco Public Library, Los Angeles County Public Library, Los Angeles Public Library and San Diego Public Library, have adopted a fine-free model for patrons. This approach has gained traction in over 200 cities and municipalities, especially during the COVID-19 pandemic.

 

Libraries that have adopted these fine-free policies have seen several positive outcomes including increased patron access to materials and services, reduction of the inequitable impact of overdue fines, improved patron relationships with their library, optimization of library staff time and increased staff efficiency, as well as a growth in library card registrations and a 200 percent increase in returned library materials. Libraries have seen patrons, who had been library users but stopped due to an unpaid fine, welcomed back to their libraries and have contributed to their increased circulation.

 

Collecting fines for overdue library materials was originally implemented as a source of revenue and as an incentive for people to return borrowed items. However, recent studies have shown that charging fines for overdue material does not result in material being returned. Overdue fines make up less than 0.027 percent of OC Public Libraries budgeted revenue.

 

 

The California Poverty Measure (CPM), which is jointly produced by the Public Policy Institute of California and the Stanford Center on Poverty and Inequality, is a best estimate of economic disadvantage across and within California. Higher poverty rates are observed in counties with high housing costs and high costs of living and impact children, immigrants, and older adults at higher rates. The measure for Orange County in 2019 was 20.4 and the measures for cities within the county span from 7.19 to 36.28.

 

Incurring fines creates a financial burden and they are a barrier to services needed by low-income families, fixed-income seniors and those struggling financially. Overdue fines block patrons’ library cards and hinder families from returning to their libraries and utilizing their services. In cities with a higher rate of poverty, OC Public Libraries see more patrons with blocked library cards. As an example, on March 30, 2021, OC Public Libraries had 9,522 patrons blocked from accessing the library due to overdue fines, who could return to using library services when overdue fines are eliminated.  Below you will see the branches with high poverty rates correspond to high percentages of patrons blocked from checking out library materials.

 

Library Branch

Community Poverty Measure (2019)

Percentage Patrons Blocked

Stanton

31.15

9.74%

La Habra

22.13

9.16%

Garden Grove Main

26.67

7.10%

Garden Grove Chapman

32.98

6.79%

Costa Mesa

28.03

6.10%

Westminster

36.28

5.98%

 

OC Public Libraries does not anticipate the elimination of overdue fines to cause an increase in lost or overdue items. There is still an incentive to return library material. Library patrons will still be responsible for lost or unreturned items and will be billed accordingly. OC Public Libraries will increase the number of reminders to patrons to return items that are overdue.

 

OC Public Libraries wishes to reflect its vision of Open Doors, Free Access and Community and welcome back patrons that have refrained from coming to the library due to outstanding fines. The implementation of a fine-free library system offers library patrons a fresh start, with an opportunity to be relieved of any financial obstacles that may prevent them from continued use of library services and positively impacts the continued use of community libraries.

 

In addition, the staffing cost associated with the collection of the fines exceeds the amount collected. Eliminating fines will provide the library with the added benefit of redirecting staff time away from the costly burden of fine collection, allowing more time for direct patron benefit.

 

Eliminating these fines and fees will permit the reduction of Brinks Courier Service with estimated savings at $2,520 annually and the elimination of the contract with Unique Management, the collection agency, estimated at $28,000 per year.

 

Overall, eliminating fines will allow the library to provide more equitable services, bring more patrons to the library, create more efficient operations and is expected to result in more satisfied patrons voicing fewer complaints and fulfilling the goal of OC Public Libraries to enable more use of library materials.

 

Attachment A summarizes the proposed charges to be eliminated and reasons for each change, including current fines that will remain the same.

 

 

Compliance with Proposition 26:

The proposed fee schedule does not fall within the definition of a tax under Proposition 26 because it is excepted by California Constitution Article XIII C, Section 1, Subdivisions (e) (1) and (2).  Subdivision (e)(1) excepts from the definition of a tax, “a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”  Subdivision (e)(2) excepts from the definition of tax, “a charge imposed for a specific government service or product provided directly to the payer that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” These exceptions apply because the fees are established to fund the services for which the fees are charged, or to encourage the return of overdue material.  Additionally, the fee amounts are no more than is necessary to recover the reasonable cost of OC Public Libraries’ fee-related activities.

 

Compliance with CEQA: The subject activity is statutorily exempt from review under CEQA pursuant to Section 21080(b)(8) of the California Public Resources Code and Section 15273 of the CEQA Guidelines (14 CCR § 15273). The proposed fees are exempt because CEQA does not apply to the modification or approval of fees or charges to meet operating expenses or the purchase of supplies, equipment and materials.

 

 

 

 

FINANCIAL IMPACT:

 

The total FY 2021-22 operating budget for OC Public Libraries is $75.4 million and the primary funding source is property taxes. Fines and Fees account for 0.027 percent of the FY 2021-22 anticipated budgeted revenue. This insignificant decrease in revenue of approximately $20,000 will be offset by a decrease in expenses incurred to process overdue fines.

 

 

 

STAFFING IMPACT:

 

N/A

 

 

 

ATTACHMENT(S):

 

Attachment A - OC Public Libraries Proposed Fee Schedule - November 2021
Attachment B - Draft of Resolution
Attachment C - Resolution No. 18-039
Attachment D - Worksheet A
Attachment E - 2021 House Resolution 31