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05/08/2003 - Minutes (2) PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH THURSDAY, MAY 8, 2003 The City Council of Salt Lake City, Utah, met in a Work Session on Thursday, May 8, 2003, at 5:30 p.m. in Room 326, City Council Office, City County Building, 451 South State Street. In Attendance: Council Members Carlton Christensen, Van Turner, Eric Jergensen, Nancy Saxton, Jill Remington Love, Dave Buhler and Dale Lambert. Also in Attendance: Cindy Gust-Jenson, Executive Council Director; Nancy Tessman, Library Director; Tim Campbell, Department of Airports Director; Russell Weeks, Council Policy Analyst; Edwin Rutan, City Attorney; Gary Mumford, Council Deputy Director/Senior Legislative Auditor; Michael Sears, Council Budget and Policy Analyst; Steve Fawcett, Management Services Deputy Director; Alison Weyher, Community and Economic Development Director; Laurie Dillon, Budget Analyst; Lehua Weaver, Council Staff Assistant; Rocky Fluhart, Chief Administrative Officer; Sylvia Jones, Council Research and Policy Analyst/Constituent Liaison; Jodi Howick, Assistant City Attorney; Roger Sandack, Library Board Chairman; Joseph Moratalla, Airport Contract Payments; Jay Bingham, Airport Chief Accountant; Steve Domino, Airport Planning and Environmental Programs Director; and Beverly Jones, Deputy City Recorder. Councilmember Christensen presided at and conducted the meeting. The meeting was called to order at 5:37 p.m. AGENDA ITEMS #1. REPORT OF THE EXECUTIVE DIRECTOR, INCLUDING REVIEW OF COUNCIL INFORMATION ITEMS AND ANNOUNCEMENTS. No report was given. See File M 03-5 for announcements. #2. RECEIVE A BRIEFING REGARDING THE PROPOSED BUDGET FOR THE LIBRARY FUND FOR FISCAL YEAR 2003-2004. View Attachment Nancy Tessman, Roger Sandack, and Russ Weeks briefed the Council from the attached handout. Mr. Sandack said the library was having a difficult time financially. He said the economy was down and taxes were up. He said patrons tended to use public facilities during down times. He said use of the library had increased approximately 180%. He said use in the children' s section had increased over 200%. Ms. Tessman said the library budget was approximately $1 million lower than was intended. She said this reduction compounded on last year's reduction. Councilmember Saxton asked about the cost of a library card to someone from another city. Ms. Tessman said if someone was a non-county user, currently there was a non- resident fee of $40 a year. She said the Board had proposed doubling the fee to $80 next year. She said that would bring in an additional $40,000. Councilmember Buhler said if the Library Board felt reciprocity did not work as it currently existed, maybe County residents could pay $50 or $60 instead of $80 for privileges. He said he wanted downtown business employers to receive consideration for library cards. Ms. Tessman said right now if a business operator wanted a library card for their business, they were entitled to one as long as they accepted responsibility. Councilmember Buhler asked if the Board had considered a property tax increase. Mr. Sandack said they had considered an increase, but felt this was not the right year. 03 - 1 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH THURSDAY, MAY 8, 2003 Councilmember Lambert asked if fundraising was down. Ms. Tessman said the library still had a number of donations that were not yet reflected in this year's budget. She said local foundations had turned the library down for grants this year. She said the foundations felt the grants were needed for life support issues. Councilmember Lambert asked about fund balance. Ms. Tessman said most of fund balance with the exception of approximately $700,000 was saved over the last few years in anticipation of the expansion project. She said part of the money was designed to pay for part of the new main library project. Councilmember Lambert asked about cutting hours on Sunday. Ms. Tessman said Sprague and Day-Riverside Libraries would now be closed on Sundays. He asked if the library had considered renting some of their facilities. Ms. Tessman said they were renting facilities now and the budget included those revenues. Councilmember Love asked about the decrease in programming and publicity. Ms. Tessman said previously the library had sent newsletters to every City resident twice a year. She said the City Library News was produced four times a year at a cost of approximately $10,000 each time. She said the newsletter would only be mailed once this year. Councilmember Love asked if the Board had considered raising fines for overdue materials. Ms. Tessman said if fines were too high, parents would not let children check out materials. Councilmember Jergensen asked about contingency and why the library had gone from approximately $1 million to $100,000. Ms. Tessman said last year' s budget was hard to compare to because one-time monies for one-time costs had been built in. Councilmember Jergensen asked about the $4 maximum late fee. Ms. Tessman said if an average of 10 items were checked out and they were all equally overdue, then it would cost a person $40 in overdue fines. #3. RECEIVE A BRIEFING REGARDING THE MAYOR'S RECOMMENDED BUDGET FOR THE AIRPORT FOR FISCAL YEAR 2003-2004. View Attachment Gary Mumford, Tim Campbell, Jay Bingham and Joseph Moratalla briefed the Council from the attached handout. Councilmember Lambert asked why the airport' s overall operating expenses were up 14.8%. Mr. Campbell said the expenses included a full year's salary for additional personnel hired the middle of last year. Councilmember Lambert asked if the airport was looking at long-term lease agreements with the airlines or if the airline agreements were renewed yearly. Mr. Campbell said they felt short-term agreements were in the City's best interest because airlines were going bankrupt. He said short-term agreements gave the City more control over the carriers' facilities. He said in a few years the uncertainty of the industry would sort itself out. He said then the Airport would be in a position to sit down with the carriers and work through long-term agreements. Councilmember Christensen asked about the move to regional jets (RJ) . Mr. Campbell said they had asked Delta monthly to give the airport an indication as to what their plans were. He said it looked like there was continued growth in the RJ portion of the operation and the Delta connection carriers. He said Concourse E could absorb a few more operations during peak hours. He said they had excess gates available on Concourse B to handle additional growth. Councilmember Saxton asked if parking fee amounts were down because of restrictions on "meeters and greeters" at the gates. Mr. Campbell said restrictions were still the same. He said the airport was beginning to see traffic build back up and more people were traveling. 03 - 2 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH THURSDAY, MAY 8, 2003 #4. RECEIVE A BRIEFING REGARDING THE PROPOSED FAA FLIGHT PATTERN CHANGES. Tim Campbell and Steve Domino briefed the Council from the attached handout and a slide presentation. Councilmember Buhler said west of Redwood Road was zoned light industrial and no homes were located in that area. He said it would be an inconvenience to many people in the valley if flight paths were moved east. He said the County had passed a resolution on the FAA flight pattern changes. He said he wanted the City Council to pass a resolution putting them on record as having concerns. Council Members were in favor of a resolution. Councilmember Jergensen said the issue had a significant increase in air travel throughout the entire City. He said there would be a reduction in property values Citywide. He said if the Council passed a resolution, the resolution needed to request a 60-day extension. Mr. Campbell said a resolution would be appropriate and individual Council Members could send their comments to the FAA. Councilmember Christensen asked staff to prepare a resolution for Tuesday, May 13, 2003. #5. RECEIVE A BRIEFING REGARDING THE LOAN AGREEMENT WITH KUTV. View Attachment Alison Weyher and Michael Sears briefed the Council from the attached handout. Ms. Weyher said the corporate guarantor of the loan would be CBS Television Station, Inc. instead of Viacom. Councilmember Lambert asked if the in-kind payment amount was increased. Ms. Weyher said it was the intent that in-kind money be used first. She said additional language specified that in-kind contributions included production costs. She said in-kind contributions needed the Council's review each year. She said if the television station and the Administration could not agree on a program within two consecutive six month periods, then the City would know they had a problem and could go to arbitration. Councilmember Saxton asked who determined what was advertised. Ms. Weyher said they had agreed that commercials would be developed jointly by the Administration and KUTV with the consent of the Council on the concept. #6. RECEIVE UPCOMING BUDGET SCHEDULE AND IDENTIFY INITIAL ISSUES OF INTEREST/CONCERN. Ms. Gust-Jenson explained the schedule. She said it was difficult to do more than three budget briefings a night. She said on May 27, 2003 some budget items were scheduled along with the Main Street briefing. She said those briefings could be moved to another night. She said budget briefings were planned for May 29, 2003 as well. Councilmember Christensen asked the Council to leave June 24, 2003 open in case the budget needed to be adopted that night. Ms. Gust-Jenson asked if there were any budget items the Council wanted to have looked at. Councilmember Lambert said he was interested in all fee increases. He said he wondered if revenue projections were correct or too conservative and how the City arrived at the projections. Ms. Gust-Jenson said they could invite the Administration to address the Council's questions. Councilmember Buhler said a discussion needed to be held on whether the Council was going to change the policy of taking 9% of general revenue for Capital Improvement Projects (CIP) as opposed to money equaling 9% of general revenue for CIP. #7. REVIEW THE TENTATIVE SCHEDULE FOR THE MAIN STREET PLAZA ISSUE. Ms. Gust-Jenson said the Chair and Vice Chair proposed on Tuesday, May 13, 2003 the Council set the date of June 3, 2003 for a public hearing. She said May 20, 2003 was the latest date the Council could receive paperwork from the Administration. She said at that time staff would coordinate to make sure paperwork was available to the public. 03 - 3 PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH THURSDAY, MAY 8 , 2003 She said May 27, 2003 would be a briefing, May 29, 2003 a follow-up briefing, and final consideration would tentatively be scheduled for June 5, 2003. Mr. Weeks said the timeline was workable. He said the documents were close to being in final draft form for the Council' s review. Councilmember Lambert said the Supreme Court was supposed to announce their decision on May 19, 2003. Mr. Weeks said there was no guarantee. Councilmember Saxton asked Council Members not to vote until the Supreme Court made a decision. She invited each Council Member to attend a special meeting on May 19, 2003 concerning Main Street. Ms. Gust-Jenson said agenda language for the public hearing needed to be advertised stating that the Council was willing to accept comment on all proposals associated with Main Street including but not limited to. She said items submitted formally through the petition process needed to be listed on the agenda. Councilmember Love said she was concerned that misinformation could be given to the public. Councilmember Buhler asked Councilmember Saxton if she would be willing to hand out copies of the Council' s legal counsel' s opinion. Councilmember Saxton said that was her intention. She said the document would be available and someone would be present to give an overview. The meeting adjourned at 8:27 p.m. bj 03 - 4 • SALT LAKE CITY COUNCIL STAFF REPORT Date: May 6,2003 Subject: Proposed 2003-2004 Fiscal Year Budget for the Salt Lake City Library System Affected Council Districts: All Staff Report By: Russell Weeks Administrative Dept. and Contact Person: Nancy Tessman, Library System Director KEY ELEMENTS: • The proposed budget indicates that the Salt Lake City Library System projects that it will collect about$575,000 less in property taxes in the next fiscal year. • • The proposed budget also indicates that large fund balances will not continue and that revenue from interest also will drop. • One revenue category—Fines/Copy Charges/Intergovernmental—is projected to increase due to increased fine collections, increased fees for non-resident library cards, lease revenue, and rental fees for use of meeting rooms. • The proposed budget contemplates a staff reduction of eight full-time equivalent positions. • The proposed budget contemplates reducing costs for employee insurance. • The proposed budget would eliminate merit increases for staff but would retain a 2 percent wage increase in January if revenue is available. • The proposed budget would decrease spending for books,audio and visual tapes and magazine and newspaper subscriptions as well as other items related to purchasing fewer items. • The proposed budget would decrease spending for programming and publicity. • The proposed budget would reduce Sunday service hours at the Day-Riverside and Sprague branch libraries but not the new Main Library. POTENTIAL OPTIONS: • • Adopt the proposed budget. • Do not adopt the proposed budget. • Amend the proposed budget if issues arise during City Council discussion on May 8. I POTENTIAL MOTIONS: • I move that the City Council adopt the proposed budget for the Salt Lake City Library • System for Fiscal Year 2003-2004. • I Move that the City Council not adopt the proposed budget for the Salt Lake City Library System for Fiscal Year 2003-2004. • I move that the City Council adopt the proposed budget for the Salt Lake City Library System for Fiscal Year 2003-2004 with the following amendments: ... MATTERS AT ISSUE/POTENTIAL QUESTIONS FOR CONSIDERATION: • • Is there a way to keep Sunday service at the Day-Riverside and Sprague branch libraries at current levels? • The City Council may wish to discuss parking fees for patrons of the Main Library with Library System and Administration representatives, including whether the level of parking fees is appropriate and whether a validation system for patrons would be workable. DISCUSSIONBACKGROUND CITY COUNCIL POLICY OBJECTIVES AND SERVICE LEVEL INDICATORS Historically,the City Council has had three policy objectives and service level expectations for the Salt Lake City Library System. • • To provide the best library services and resources possible to Salt Lake City residents and visitors. • To provide sufficient and equitable access to library information and services to all members of the community. • To provide economical and efficient library services to meet the needs of the community. It should be noted that the City Council has not reviewed its policy objectives and service level expectations for nine years. It also should be noted that the City Council had a management review of the Library System conducted in 1997,and the System received high marks for service, performance and efficiency. The authority for the City Council to review and act on the City Library System's budget appears in Title 9, Chapter 7 of the Utah Code.The Chapter includes the following sections: 9-7-401. Tax for establishment and maintenance of public library—Library fund. (1)A city governing body may establish and maintain a public library. (2)For this purpose,cities may levy annually a tax not to exceed.001 of taxable value of taxable property in the city.The tax is in addition to all taxes levied by cities and is not limited by the levy limitation imposed on cities by law.However,if bonds are issued for purchasing a site,or constructing or furnishing a building,then taxes sufficient for the payment of the bonds and any interest may be levied. (3)The taxes shall be levied and collected in the same manner as other general taxes of the city and shall constitute a fund to be known as the city library fund. (4)The city library fund shall receive a portion of the uniform fee on tangible personal410) 2 property in accordance with the procedures established in Subsection 59-2-405(5). 9-7-402.Library board of directors—Expenses. (1) When the city governing body decides to establish and maintain a city public library under the provisions of this part,it shall appoint a library board of directors of not less than five members and not more than nine members,chosen from the citizens of the city and based upon their fitness for the office. (2) Only one member of the city governing body may be,at any one time,a member of the board. 9-7-404.Board powers and duties—Library fund deposits and disbursements. (1)The library board of directors may,with the approval of the city governing body: (a)have control of the expenditure of the library fund,of construction,lease,or sale of library buildings and land,and of the operation and care of the library;and (b)purchase,lease,or sell land,and purchase,lease,erect,or sell buildings for the benefit of the library. (2)The board shall: (a)maintain and care for the library; (b)establish policies for its operation;and (c)in general,carry out the spirit and intent of the provisions of this part. (3)All tax moneys received for the library shall be deposited in the city treasury to the credit of the library fund,and may not be used for any purpose except that of the city library.These funds shall be drawn upon by the authorized officers of the city upon presentation of the properly authenticated vouchers of the library board.All moneys collected by the library shall be deposited to the credit of the library fund. 411 9-7-406. Reports to governing body and State Library Board.The library board of directors shall: (1)make an annual report to the city governing body on the condition and operation of the library,including a financial statement;and (2)provide for the keeping of records required by the State Library Board in its request for an annual report from the public libraries,and submit that annual report to the State Library Board. It should be noted that it is an internal City Council policy not to have City Council Members serve on City boards and commissions except in an ex officio capacity. REVIEW OF LIBRARY SYSTEM REVENUE FOR FISCAL YEAR 2003-2004 City Council staff prepared the following table with the intent of showing projected revenue for Fiscal Year 2003-2004. PROPOSED REVENUE BUDGET Adopted Proposed Major Category 2002-2003 2003-2004 Difference Percent Property tax $10,613,202 $10,038,276 ($574,926) -5.42% Interest 280,000 125,000 (155,000) -55.36% Grants/Donations 604,704 347,411 (257,293) -42.55% Fines/Copy Charges/Intergovernmental 358,000 446,626 88,626 24.76% Capital Fund Balances 3,950,000 750,000 (3,200,000) -81.01% TOTAL $15,805,906 $11,707,313 (S4,098,593) -25.93% 3 • One might see from the proposed table that, except for an estimated rise in fines, copy • charges and intergovernmental collections,revenue from other sources are projected to decline in the next fiscal year. The steepest anticipated decline occurs in the capital fund balance category. In the current fiscal year the category includes about$3 million in fund balances for capital projects and—for this report—$950,000 in a line item in the operating budget titled Contingency Savings. The City Council staff report last May for the Library System budget described the revenue budget as one that was cash rich due to healthy fund balances but whose future was uncertain due to anemic"natural growth"in property taxes. The projected budget for Fiscal Year 2003-2004 appears to bear out the previous paragraph. Last year Library administrators said fund balances were large to pay one-time costs associated with construction of the new Main Library and the expansion of the Anderson-Foothill Branch Library. Library Administrators said then that the one-time costs in capital fund balances also were designed to pay for items that could be paid by the$84 million general obligation bond, but the useful life of the items was shorter than the life of the bond repayments.The$950,000 Contingency Savings line item in the operating budget was earmarked to pay one-time costs associated with operating the new Main Library when it opened. Library administrators indicate that expenditures of the fund balances have occurred as anticipated. One also might note that in April the City Council adopted a budget amendment that reduced the capital fund balances by$223,000 and the operating budget Contingency Savings line item by$350,000 to pay for a shortfall in property tax revenue for the current fiscal year. • Revenue from property taxes is projected to decline in the next fiscal year by$574,926— a 5.42 percent decrease.One might note that due to large fund balances in the current fiscal year property tax as a percentage made up about two-thirds of the Library System's total projected revenue. With the depletion of fund balances anticipated revenue from property taxes makes up about 85 percent of total revenue in the proposed budget for the next fiscal year.The percentage of reliance on property taxes as a revenue source is closer to the Library System's historical reliance on property taxes as its main revenue source than the current fiscal year's adopted budget. The proposed budget also projects drops in interest earnings and grants and donations. In previous discussions with the City Council in April,Library System administrators have indicated that interest earnings fell during the current fiscal year due to drops in interest rates nationwide. System administrators also have scaled back anticipated revenue from in the line item titled Donations/Other Grants. Between fiscal years 1994-1995 and 1999-2000 revenue in that category met or exceeded expectations for the operating budget. However, in the last two years revenue has fallen below projections. In the 2000-2001 fiscal year the budget anticipated revenue of$78,718,but the actual amount collected was$34,353.In the 2001-2002 fiscal year the budget anticipated revenue of$80,000,but the actual amount collected was$33,449.The current fiscal year budget anticipated revenue of$300,000. As of the end of March revenue collected was $92,370.The figure does not include an anticipated$40,000 donation from the Friends of the Library. The one category projected to increase—Fines/Copy Charges/Intergovernmental—is expected to increase for four reasons: 4 • 1. Increased circulation—The Library is seeing circulation rising system-wide, • and fines and collections are expected to keep pace. 2. Increased fees for non-resident library cards—The proposed budget includes a hike in the charge for non-resident library cards from$40 a year to$80 a year. It should be noted that"non-resident cards"mean cards issued to people living outside Salt Lake County.The Library System has a reciprocal agreement with the Salt Lake County Library System in which City library cards are honored at County libraries and vice versa. Library administrators estimate that$80 is roughly the same cost City residents pay per year in property taxes. The$80 includes repayment of the$84 million bond issued to build the new Main Library,expand two branches,and build the plaza and underground parking structure.The Library System issues 382 non-resident cards in calendar year 2000;454 cards in calendar year 2001;and 440 cards in calendar year 2002. Between January 1 and April 30,2003,the System issued 649 non-resident library cards. 3. Lease revenue—Since discussions of leasing space in the new Main Library's Urban Room and outside wall began more than a year ago Library System administrators consistently have estimated revenue from those leases at about $60,000 per year. 4. Rental fees for use of meeting rooms—The Library Board of Directors adopted a policy and fee schedule in April to charge for some use of meeting rooms. The center of the policy is a statement that generally the Library System will not charge for use of meeting rooms.However, meetings that run more than four hours and require either food or audiovisual equipment may be considered conferences and be charged fees.Fees also may be charged to groups that request audiovisual equipment set up or assistance or that request food. A copy of the policy and fee schedule is attached to this report. PROPOSED EXPENDITURE BUDGET BY MAJOR CATEGORY Major Category Adopted Proposed Difference Percent 2002-03 2003-04 Change Personal Services $ 7,686,800 $ 7,560,000 $ (126,800) -1.65% Materials/Supplies 1,970,606 1,655,313 (315,293) -16.00% Charges/Services 859,000 684,000 (175,000) -20.37% Capital Outlay&Improvements 4,339,500 1,708,000 (2,631,500) 60.65% Operating Contingency 950,000 100,000 (850,000) -89.47% Total $ 15,805,906 $ 11,707,313 $(4,098,593) -25.93% CAPITAL OUTLAY&IMPROVEMENTS—OPERATING CONTINGENCY The above table indicates that the largest drops in projected expenses would occur in the Capital Outlay&Improvements and Operating Contingency categories.The drops appear to reflect projected drops in capital and contingency fund balances on the revenue side.The proposed budget earmarks $733,000 for the daily maintenance of buildings, grounds and equipment in the next fiscal year. Most projected line items in that category would remain the 5 same as the current fiscal year's adopted budget except for a projected$105,000 decrease in payments for contract services and a projected$3,500 increase in anticipated costs for water. • According to the proposed budget,contract services include computer service and . maintenance, elevator maintenance,security,trash collection,recycling, indoor plant maintenance, elevator maintenance, copier and alarm service contracts, window washing; and fountain maintenance. Of the remaining$975,000 earmarked for the System's capital improvements program, the budget proposes to set aside$700,000 for future allocations for a new branch library in the southwest section of Salt Lake City. Another$150,000 is earmarked for capital repairs, $65,000 for contingency, $50,000 for technology replacement,and$10,000 for vehicle replacement. PERSONAL SERVICES At$7,560,000,the Personal Services category makes up 64 percent of expenditures in the proposed budget, The expenditure table indicates that the$7.56 million targeted for personal services is a 1.65 percent decrease from the current year's adopted budget. The decrease reflects the Library System's effort to cut personnel costs at a time when the System has added personnel at the new Main Library.The current year's adopted budget indicates that at the start of the current fiscal year the Library System employed 232 positions that equaled 154.7 full-time equivalent positions. According to an attached fact sheet,the Library System employed about 275 full-time and part-time workers as of April 2003. To cut personnel expenses,the Library System's proposed budget contemplates cutting eight full-time equivalent positions in the next fiscal year. It also contemplates starting to change • the way employees' health insurance benefits are apportioned. According to System administrators,they hope to reduce the eight full-time equivalent positions through attrition.Three of the positions are vacant,and the remaining five positions may be eliminated by September. System administrators are concentrating on full-time equivalent positions because the positions also include benefit packages. If attrition fails to eliminate the positions,the proposed budget includes a$7,000 increase over the current year's$8,000 allocation for state unemployment compensation. The largest decrease in the category is a 21.5 percent decrease in employees' insurance from$709,446 in the current year's adopted budget to$556,789 in the proposed budget. There are two reasons for the projected decrease. First,the Library System changed from the Public Employees Health Program for Salt Lake City to a different PEHP program. As a result, premiums diminished. Second,the Library System is working toward paying all employees the same benefit, and leaving employees with a partner or family dependents to pay the cost of insuring them.The program will be phased in over three years,but the anticipated savings in the next fiscal year will be close to$200,000,according to administrators. In addition,the proposed budget includes no merit increases for employees but contemplates a 2 percent wage increase in January if there is enough revenue. MATERIALS/SUPPLIES The next largest category involves projected expenditures for materials and supplies. The proposed budget reflects a planned$310,293 reduction in spending for all materials from the • 6 • current fiscal year's adopted budget. Roughly half the projected reduction will come from the purchase of fewer books and reference sources. According to the proposed budget,the System will buy fewer duplicate titles which may mean residents will have to wait longer to check out books in high demand.The budget proposes to cut another$100,000 in allocations for sound and visual recordings. Again,the emphasis will be on buying fewer duplicate titles.The budget also proposes to spend about$30,000 less than the current year's adopted budget on magazine and newspaper subscriptions. Other items such as supplies and outsourcing will be reduced. CHARGES/SERVICES This category includes items such as programming, publicity,the Salt Lake City administrative charge,insurance, and utility charges. The proposed budget projects a 15.2 percent decrease from the current year's adopted budget of$1,183,000 to$1,003,000.The largest decrease appears in anticipated programming costs. The proposed budget earmarks$130,000 for the next fiscal year versus$255,000 in the current year's adopted budget.The proposed budget also would spend about$31,000 less than the current year's budget for publicity. It also would eliminate outsourcing preparing the Library System's books and other materials before they are put on shelves and cut the cost of cataloging the materials. Both reductions are related to proposed spending reductions for books,periodicals and audiovisual items. Anticipated costs for telephone and postage are projected to remain the same as the current fiscal year at$125,000 and$100,000 respectively.The projected cost of insurance is expected to increase from$100,000 in the current fiscal year to$175,000. • OTHER ISSUES SUNDAY BRANCH SERVICE: The proposed budget contemplates reducing Sunday service at the Day-Riverside and Sprague branch libraries.The City Council may wish to determine whether the branches would be closed on Sundays or open for fewer hours.The City Council may wish to explore whether Sunday service at the two branches could remain at the same levels as the adopted budget for the current fiscal years. PARKING FEES AT THE MAIN LIBRARY: When the new Main Library opened the Library System instituted a charge for public parking for patrons in the second level of the parking garage underneath the new library.The charge for parking in the second level is:first half-hour free and 75 cents per half hour after that. The Library System signed a contract with a parking garage operator before the new Main Library opened. According to System administrators,the contract was initiated only after discussions with the City Administration about it,and the City Administration did not indicate that charging for parking would be a problem. The System had contemplated charging for parking as early as the year 2000. According to a flier titled A New Main Library, Questions and Answers Update February 2000,the second question on the flier was,"Will there be parking?Will it be free?"The answer below the question • reads:"An underground parking garage of 600 stalls will be constructed under the New Main Library for both public and employee parking. In order to preserve the parking for library patrons it may be necessary to employ a combination of free validation and fees for parking." 7 According to System administrators,the current charges for parking were designed to • protect parking spaces for patrons and to build a reserve to maintain at least the Library System's patron parking spaces. However, it is City Council staff's understanding that the City Attorney's Office has given an informal opinion that the parking garage belongs to Salt Lake City, and the City is responsible for setting fees for parking. It also is City Council staff's understanding that the Administration is preparing an agreement to establish parameters between the City and the Library System on responsibilities for establishing fees for City-owned property. Library administrators indicated that as of May 1,they had not seen a copy of the agreement. The City Council may wish to discuss the issue with Library System and Administration representatives. The Council also may wish to discuss whether the level of parking fees is appropriate and whether a validation system for patrons would be worthwhile. • Cc: Cindy Gust-Jenson,Nancy Tessman, Rocky Fluhart, Gary Mumford File Location: Salt Lake City Library System • 8 Attachment 1 MTG MEETING ROOM USE • MTG2 REGULATIONS (PROCEDURES) Page 1 MTG2.1 General Provisions 2.1.1 Library meeting rooms are maintained primarily for use by the City Library to accomplish its mission. If a meeting room is not scheduled for a library-related function, members of the public may apply for use of a meeting room. The Library provides meeting rooms for members of the public on an equitable basis, regardless of the beliefs or affiliations of individuals or groups requesting the meeting room (herein noted as applicant or group). 2.1.2 All nonlibrary-related meetings are open to the public. 2.1.3 Generally, there is no fee for the use of individual meeting rooms. Meetings that are more than four hours in length and require either food or audiovisual equipment may be considered conferences (see MTG3). Fees may also apply to those who request audiovisual equipment set up or assistance, or for food. (A fee schedule is available upon request.) 2.1.4 The City Library may deny the use of a meeting room to an applicant if in the Library's opinion: A. The purpose of the meeting or activity is illegal or potentially hazardous; B. The meeting will present health or security risks; C. The conduct of the meeting will interfere with the Library's functioning; D. The purpose of the meeting is promotional for financial gain; E. The applicant has not provided satisfactory adult sponsorship and supervision for the meeting; F. The applicant has failed to comply with these or other library regulations. 04.03 • REVIEWED BY BOARD OF DIRECTORS O4.17.03 MTG MEETING ROOM USE MTG2 REGULATIONS (PROCEDURES) • Page 2 2.1.5 An applicant aggrieved by an administrative decision about the use of a library meeting room may appeal the decision by writing a letter to the Library Board of Directors within five (5) working days of the decision.The applicant, or chosen representative, may appear before the Library Board at a regularly scheduled board meeting to state a position. A library manager may present an opposing view at the same meeting with_ theLibrary Board deciding the matter. 2.1.6 Meeting room accommodations and seating room capacity vary throughout the Library System. Library managers at Anderson-Foothill, Chapman, Day-Riverside,Sprague,and Sweet Branches and the Business Office at the Main Library will accept applications and make arrangements for meeting rooms at their respective locations. (See the application form for location and maximum seating capacity of library meeting rooms as set by Salt Lake City Fire Ordinances.) MTG2.2 Application to Use Library Meeting Rooms 2.2.1 Applicants requesting use of a library meeting room shall make written application for meeting room use on a form furnished by the Library. The form must be signed by the applicant or a designated representative. The applicant will clearly state on the form the purpose of the meeting, date and hour of the meeting, the name of any sponsoring agency, and the subject to be discussed. 2.2.2 The applicant may submit an application for using library meeting rooms on a regular basis by filling out one form for several meeting dates, as long as the specified meetings are for the same purpose and are of the same general character. Applicants can make extended renewals for no more than six months from the first application date and can renew an application for extended use for January through June after November 15`h and for July through December after May 15`h. Where meeting room space is limited at the branches,sequential scheduling of meeting rooms is at the discretion of the library manager based on balancing community needs. 04.03 • REVIEWED BY BOARD OF DIRECTORS O4.17.03 MTG MEETING ROOM USE 4110 MTG2 REGULATIONS (PROCEDURES) Page 3 2.2.3 If two or more applicants request the same room for the same time and date,the City Library will give priority to the applicant who first requests the room, unless the Library has reserved the room to conduct library- related functions or there is a need to ensure a balanced, flexible, and appropriate use of available meeting rooms by all applicants. The Library reserves the right to deny permission to use a meeting room or to substitute facilities. 2.2.4 Library staff will answer public inquiries concerning meeting room use from information provided by the applicant on the application form. 2.2.5 An applicant may make preliminary arrangements for meeting rooms by telephone with the Business Office staff at the Main Library or with a staff member at a branch library but will receive confirmation of the request only upon receipt of the written application signed and approved by a library manager or designated Business Office staff. • 2.2.6 Library staff in the Main Library will open meeting rooms 15 minutes in advance of the time scheduled for the meeting. In branch libraries, groups who wish to enter a meeting room in advance of the time scheduled must make arrangements with the library branch manager at least one week prior to the date of the meeting. All public meetings must end 15 minutes prior to library closing. MTG2.3 Conduct in Use of Meeting Rooms 2.3.1 Applicants using library meeting rooms may not charge an admission or registration fee or take up a collection for entrance to or participation in a meeting or program except for activities sponsored by the Friends of the Salt Lake City Public Library. Groups conducting classes may charge a registration fee if the fee is not collected at the Library. The applicant may not sell any materials or collect any other fees,charges,or donations unless the library manager gives prior written approval of such sales or collections. • 04.03 REVIEWED BY BOARD OF DIRECTORS 04.17.03 MTG MEETING ROOM USE • MTG2 REGULATIONS (PROCEDURES) Page 4 2.3.2 If applicants decide to cancel a scheduled meeting,they shall notify the City Library of the cancellation in a timely manner. If the meeting room is in a branch library, the applicant shall notify the library manager responsible for that meeting room. If the meeting room is in the Main Library, the applicant shall notify the Business Office of the Main Library. Applicants that fail to notify the Library when meetings are_ canceled may be denied future reservations and/or have current reservations canceled. 2.3.3 Approval of the application to use a meeting room is for the room only. Approval for decorations, anything fastened to the wall, special signage, a registration table outside the meeting room, refreshments,etc., must be obtained through prior written consent from the library manager, in the case of a branch library,or from the Business Office of the Main Library. 2.3.4 The City Library may require adult sponsorship for any meetings involving persons of high school age or younger. If adult sponsorship is 40 required, the applicant and the adult sponsor must expressly agree on the application form that the adult sponsor will attend and supervise the meeting, and that the applicant and the adult sponsor will accept responsibility for, and will reimburse the Library for, any damage caused by the group or by members of the group to the meeting room or to the Library. 2.3.5 The applicant shall leave the meeting room in the same condition as it was at the beginning of the meeting. If damage to the room, its furnishings or equipment occurs during the meeting, the City Library may require the applicant to pay for damages. If the applicant is required to pay for damages, the library manager will assess the reasonable cost of repairing the damages caused during the meeting and will notify the applicant of the damage assessment. The applicant shall reimburse the Library for the damages by paying the assessed amount to the Business Office of the Salt Lake City Public Library within thirty (30) days of receiving notice of the damage assessment. The Library shall deny use of meeting rooms until the applicant pays the assessed amount. 04.03 REVIEWED BY BOARD OF DIRECTORS O4.17.03 MTG MEETING ROOM USE • MTG2 REGULATIONS (PROCEDURES) Page 5 MTG2.4 Restrictions 2.4.1 The City Library does not allow the use of the name and address of any of the Library's facilities as the official address or headquarters of a group. 2.4.2 Use of library meeting rooms by members of the public does not constitute endorsement by the Library or its Board of Directors of points of view expressed by program participants or sponsors. No advertisement or announcement implying such endorsement will be permitted. Groups granted permission to use library meeting rooms must avoid any suggestion or implication of endorsement by the Library. 2.4.3 State law prohibits smoking in public buildings, including libraries. 2.4.4 The City Library is not responsible for any items stored at its facilities by • groups using meeting rooms. MTG2.5 Use of Equipment and Fees 2.5.1 Libraries have limited equipment for use in meeting rooms without charge. Applicants may reserve such library equipment when they apply for the meeting room. Applicants will be responsible for operating meeting room equipment. 2.5.2 Additional audiovisual equipment is available for a fee. Applicants may ask the Business Office or branch library staff for a list of equipment available for meeting room use by the public at each library facility. (A fee schedule is available upon request.) 2.5.3 Copyright restrictions apply to the use of library meeting rooms and equipment. Library meeting rooms and equipment cannot be used to duplicate or show material protected by copyright law(Title 17, United States Code). Applicants may be liable for any infringement. • 04.03 REVIEWED BY BOARD OF DIRECTORS 04.17.03 MTG MEETING ROOM USE MTG2 REGULATIONS (PROCEDURES) • Page 6 MTG2.6 Satellite Equipment at Day-Riverside Branch Library The City Library offers satellite equipment at the Day-Riverside Branch Library in recognition of the equipment's great potential for programming, staff development: training, and as a resource for information. MTG2.7 Uses of Satellite Equipment There are many possible uses of the City Library's satellite equipment and these uses include, but are not limited to, the following: A. Library programming for the public; B. Programming requested by patrons; C. Library training and staff development; D. Opportunities for other library systems; • E. Opportunities for government agencies; F. Opportunities for community organizations. MTG2.8 Guidelines for Using the Satellite Equipment 2.8.1 Use of the satellite equipment must be consistent with the Library's mission statement. 2.8.2 Use of the satellite equipment must be consistent with the Library's meeting room policy(e.g., programs must be open to all patrons; neither admission charges nor solicitations are allowed). 2.8.3 The meeting room at the Day-Riverside Branch Library must be available on the date of the satellite telecast. 04.03 • REVIEWED BY BOARD OF DIRECTORS O4.17.03 MTG MEETING ROOM USE • MTG2 REGULATIONS (PROCEDURES) Page 7 2.8.4 An Application for Use of Meeting Rooms form must be filled out and approved by library staff. 2.8.5 The satellite equipment must be requested on the application form. 2.8.6 Staffing resources will be taken into consideration when evaluating a_ request (e.g., staffing needed to set up equipment and to troubleshoot any equipment problems). 2.8.7 When there is a cost associated with the reception of a satellite program: A. For programs generated by library programming and training,the cost must be affordable within the Library's programming and training budgets respectively. B. For satellite program requests generated by the public, the cost must be absorbed by the individual or group requesting use of the meeting room and satellite equipment. Payment must be made at the time that the meeting room application is approved. Sufficient time should be available for library staff to make arrangements for clearing the telecast. C. At the present time, the City Library is not equipped to uplink satellite broadcasts. However, an individual or group may supply the equipment necessary to uplink a particular satellite broadcast to the branch. The individual or group would be responsible for any costs or damages incurred as a result of the uplink. D. The cost cannot be recuperated through an admission charge to the program. E. The appropriate fee that the City Library will charge for support personnel to operate the equipment will be at the entry level hourly wage for a Library Assistant (Grade 135, Step A). • 04.03 REVIEWED BY BOARD OF DIRECTORS O4.17.03 MTG MEETING ROOM USE • MTG2 REGULATIONS (PROCEDURES) Page 8 2.8.8 Requests to tape a program must be specified on the application form. The taping of an approved program can be accommodated provided that: A. There are no copyright restrictions for the given program; B. The individual or group responsible for the program will provide the blank tape(s); C. The applicant is present during the telecast. 2.8.9 Library staff will be exclusively responsible for setting up and operating the satellite equipment. MTG2.9 Technical Difficulties 2.9.1 The City Library shall not be held responsible for technical difficulties that may affect the quality of the satellite transmission. 2.9.2 In the event the telecast cannot be received due to technical or other problems attributed to the sender of the telecast, the City Library will request a refund which, if granted, will be passed on to the applicant. 04.03 • REVIEWED BY BOARD OF DIRECTORS O4.17.03 MTG MEETING ROOM USE MTG3 CONFERENCE AND FACILITY RENTAL Page 1 MTG3.1 Policy Statement The City Library's meeting rooms, including individual conference rooms,are open free of charge to community groups according to the terms outlined in its meeting room use policy. For those organizations needing multiple meeting rooms over extended time periods, the Library's conference facilities are available for a rental fee that covers the_ Library's expenses in making the facility available. The Library's Rooftop Garden and Urban Room can also be rented for a fee. MTG3.2 Facility Availability and Fees Priority in reserving conference and facility space(s) will be given first to City Library- sponsored programs, Salt Lake City-sponsored activities,and the Library's programming partners. Fees for nonprofit organizations, charities, and government agencies are negotiable. • 3.2.1 The City Library makes available the following rentable facilities at its Main Library for conferences and events. Payment is due upon reservation. Generally, there is no fee for use of individual conference rooms (see MTG2.1.3). Base fees listed below are for facilities only and do not include additional costs for staff, security, parking, equipment, etc. Individual, 501(c)(3), Corporate, Charity, or and Corporate Government Nonprofit Agency A. Auditorium, after-hours $2,000/day $500/day B. Auditorium and Conference Center $2,500/day $700/day C. Conference Center only $2,200/day $500/day D. Urban Room $2,200/day $500/day E. Rooftop Garden $2,200/day $500/day • 04.03 REVIEWED BY BOARD OF DIRECTORS 04.17.03 MTG MEETING ROOM USE MTG3 CONFERENCE AND FACILITY RENTAL Page 2 F. All Other Conferences $100/hour $20/hour per room per room 3.2.2 Partial day rates for the Auditorium and Conference Center are not available. 3.2.3 The Urban Room and Rooftop Garden can only be rented when the Main Library is not open. Appropriate security will be determined and provided by the Library at the user's expense. 3.2.4 The cost of renting library facilities does not include free parking. Limited parking passes may be negotiated separately. 3.2.5 After library priorities are met (see MTG3.2), reservations will be given consideration on a first come, first served basis. Each event request will be considered on an individual basis according to the overall number of requests pending, staffing, and other considerations of library priorities. 3.2.6 The use of branch library meeting rooms and facilities when the branch is not open may be negotiated on a case-by-case basis. MTG3.3 Authorization for Conference and Facility Use 3.3.1 The policies outlined in this document shall be implemented by a designated library staff member. 3.3.2 Permission to meet in the Library in no way constitutes endorsement by the City Library of the policies or beliefs of the organization or individual using the facilities. 3.3.3 The City Library, in its sole discretion, will determine the number of events operated simultaneously in its facilities and does not guarantee sole use of a facility. 04.03 • REVIEWED BY BOARD OF DIRECTORS 04.17.03 MTG MEETING ROOM USE • MTG3 CONFERENCE AND FACILITY RENTAL Page 3 3.3.4 If use is approved, a designated library staff member will execute a Contract for conference and facility use with the group. User must agree to abide by the meeting room policies set forth herein and to pay _ appropriate fees upon execution of the Contract for meeting room use. - MTG3.4 Policies Regarding the Use of Conference and Facility Space(s) 3.4.1 It is important that organizations and individuals who use the meeting rooms understand and acknowledge that they are guests of the City Library, able to use library facilities at the discretion of the Library, and their use of the facilities reflects that understanding. 3.4.2 Library facilities and meeting rooms are managed according to city, county, state and/or federal laws governing the protection of public property and fire safety. • 3.4.3 Authorized library staff may enter and remain in a meeting room at any time during a scheduled meeting or event. The City Library reserves the right to attend any meeting held in its facilities (except executive sessions of governmental bodies)to ensure that no unlawful activities are occurring on library premises. 3.4.4 Activities for minors must be supervised by responsible adults. 3.4.5 At any time the Main Library is open for use by a library support group, a community organization or a commercial firm, that facility must be opened by a library employee, and a library employee must remain in the building for the duration of the event. 3.4.6 Authorization for library facilities and meeting room use does not include the use of staff time other than to provide access to the facility or meeting room. The City Library may require its staff be present at some activities to provide appropriate security, technical support, custodial, and maintenance services. The organization using the facility will be required to pay for these staff services in advance. • 04.03 REVIEWED BY BOARD OF DIRECTORS 04.17.03 MTG MEETING ROOM USE MTG3 CONFERENCE AND FACILITY RENTAL Page 4 3.4.7 When library facilities are used by recognized library support groups, partners or other affiliated community organizations, it is the policy that all activities be planned by the group in consultation and cooperation with a library staff member designated as liaison to the group. With this participation, it should be possible to schedule events so they have the least adverse impact on normal work schedules. Staff will make a_ concerted effort to meet the needs of the group within an adjusted work schedule. If this is not possible because of budget restraints, reduced services,vacancies,etc.,the support group may be required to pay a fee to cover costs to keep the library facility open during nonservice hours. 3.4.8 Authorization for library facilities and meeting room use is limited to the furniture and equipment assigned to that facility or room. 3.4.9 All equipment,other than installed equipment, required by user must be provided by them. Delivery and pick up of rentals and other equipment brought in for an event must be coordinated with a designated library staff member. Equipment and supplies may not be stored in the City • Library for subsequent use. If left unclaimed for five (5) days after the end of an event, any equipment and supplies may be sold by the Library at a public or private sale or otherwise discarded or destroyed without notice to the user or liability to the Library. 3.4.10 Staff assistance in the arrangement of chairs and tables in other than the standard arrangement provided will require special written request for permission at the time the Contract for conference and facility use is submitted and requires advance payment of fees as outlined above. 3.4.11 Additional arrangements for staff assistance must be approved and paid for in advance of the date of the event. 3.4.12 The user incurring charges not requested or paid for in advance, including demands on staff time or staying beyond reserved time,will be billed according to the fee schedule set forth above. Failure to pay the fee will result in the group's loss of use of library facilities. 04.03 411/ REVIEWED BY BOARD OF DIRECTORS 04.17.03 MTG MEETING ROOM USE • MTG3 CONFERENCE AND FACILITY RENTAL Page 5 3.4.13 The Library Administration may choose to waive the use fee for a program being offered by another organization if the purposes of the program are closely aligned to those of the City Library. Such a program must be developed and offered by the organization to bring information on a topic of interest to the general public. The event must be free and open to the public. Service fees (if applicable) will be charged to the_ organization. 3.4.14 Handouts may be distributed inside the room, immediately outside the meeting room, or outside the library building. Handouts may not be distributed or posted in the City Library except as approved by a designated library staff member. 3.4.15 A list of vendors with their contact person and telephone number must be given to the City Library two weeks prior to the day of the event. Delivery and arrival schedules for all vendors must be approved by a • designated library staff member. MTG3.5 Meeting Room User Responsibilities 3.5.1 All persons requesting to use library facilities and meeting rooms must agree to abide by these policies and all applicable local, state, and federal laws. 3.5.2 It is the responsibility of the person who signs the Contract for conference and facility use to serve as the authorized representative of the group, to remain on the premises throughout the period for which it is reserved, ensuring the safety and security of attendees and the library facility, as well as ensuring that attendees observe the regulations set forth in this document. 3.5.3 Arrangements for deliveries must be made in advance with a designated library staff member. 3.5.4 Library conference and facility users must agree to restore the area to a reasonable degree of order (e.g., all waste material in appropriate receptacles). Failure to restore facility or meeting room to this condition • 04.03 REVIEWED BY BOARD OF DIRECTORS 04.17.03 MTG MEETING ROOM USE • MTG3 CONFERENCE AND FACILITY RENTAL Page 6 may result in additional charges for the required cleaning and may result in revocation of authorization for future use. 3.5.5 Library conference and facility users agree to pay for any and all damages to library property including, but not limited to, walls, floors, carpets, grounds,equipment, and furniture while property is being used,- Failure to pay for damage will result in revocation of authorization for future use and/or other necessary action. 3.5.6 Designated library staff will conduct a walk-through before and after each meeting. The authorized representative of the group must report to the designated library staff member before set up and also at the end of the meeting. Unless previously scheduled otherwise, meetings must end before the City Library's closing time to allow for cleanup and walk- through. MTG3.6 Indemnification The user shall hold harmless, defend, and indemnify the City Library and its entities from and against any and all claims, losses, causes of action,judgments,damages, and expenses, including, but not limited to, attorneys' fees, because of bodily injury, sickness,disease, or death,or injury to or destruction of tangible property, or any other injury or damage resulting from or arising out of: (a) performance or breach of this Contract by user; (b) suppliers' use of library premises; or, (c) any act, error, or omission on the part of the user or its agents, employees, or subcontractors except where such claims, losses, causes of action,judgments,damages, and expenses result solely from the negligent acts or omissions or willful misconduct of the Library, its officers, employees, or agents. MTG3.7 Insurance 3.7.1 The City Library may require the user/vendor to maintain Commercial General Liability Insurance, to include Liquor Liability Insurance with a minimum of $1,000,000.00 limit per occurrence. If applicable, user shall maintain Commercial Automobile Insurance with a minimum limit of$1,000,000.00 combined single limit. Vendor agrees to maintain and be responsible for all Workers Compensation Insurance for all 04.03 • REVIEWED BY BOARD OF DIRECTORS 04.17.03 MTG MEETING ROOM USE • MTG3 CONFERENCE AND FACILITY RENTAL Page 7 employees on the premises if applicable. In addition,the Library and its entities must be named as additional insured on all liability policies. 3.7.2 If the coverages described above are not in place at the time the application is submitted, the user should be prepared to describe what types and levels of coverage are in place currently, and clearly indicate_ the suppliers'ability and willingness to obtain the above-listed coverages if required by the City Library. The Library reserves the right to require additional coverages from that presented, at the user's expense, for the additional coverage. An insurance waiver may be issued to an applicant that can show proof of being uninsurable - proof that coverage was denied by at least three insurance providers licensed and doing business in the state of Utah, including the current state provider of insurance. MTG3.8 Reservations • 3.8.1 Reservations will be given consideration on a first come, first served basis. Each event request will be considered on an individual basis according to overall number of request(s) pending, staffing, and other considerations of library priorities. 3.8.2 The City Library reserves the right to preempt any event up to two months in advance for a Library or City-sponsored event; in such instances, the Library will assist the group in reserving another date or library facility or meeting room. 3.8.3 Reservations for public use of the conference and facility space(s)will be taken no more than six months in advance of the intended use, except by authorization of the Library Administration. 3.8.4 A fully completed and signed Contract for conference and facility use must be submitted upon acceptance of a reservation by a designated library staff member. 3.8.5 Payment and a signed contract are required to secure and confirm a reservation of library space. • 04.03 REVIEWED BY BOARD OF DIRECTORS 04.17.03 • • MTG MEETING ROOM USE MTG3 CONFERENCE AND FACILITY RENTAL Page 8 3.8.6 Use of conference and library facilities is limited to the type of meeting or activity stated on the Contract for meeting room use. The City Library shall be notified of any changes in the type of activity scheduled for a library meeting room two weeks in advance. Such changes may void prior approval or require the payment of additional fees. MTG3.9 Scheduling 3.9.1 Reservations for use of Main Library facilities conference and facility space(s) are submitted to a designated library staff member in person or via mail or fax. 3.9.2 Although conference facilities may be used any time, the Urban Room and Rooftop Garden are available only when the Library is not open to the public. Approval from the Library Administration is required for the use of any Main Library space(s) outside of public services hours. 3.9.3 Notice of cancellation must be given to a designated library staff III member at least four weeks in advance for a full refund. MTG3.10 Catering 3.10.1 The caterer for any event in a library facility must be approved by a designated library staff member who may request a$300.00 refundable cleaning deposit from caterers. 3.10.2 Caterers must comply with the rules and regulations of a signed agreement and as listed below: A. Catering staff should arrive and exit through locations designated by the City Library. B. Parking for catering must be arranged with the designated library staff member. C. Use of the loading dock and freight elevators must be prearranged with a designated library staff member. 04.03 • REVIEWED BY BOARD OF DIRECTORS 04.17.03 MTG MEETING ROOM USE • MTG3 CONFERENCE AND FACILITY RENTAL Page 9 D. Gas of any kind for cooking is prohibited. Sterno-heated proofing cabinets are subject to approval. No frying is allowed in any space in the City Library. E. Any electrical appliances must be approved by the City Library,- and electrical requirements must be given to the Library at least two weeks prior to the day of the event. F. Set up time for the event will be determined by the City Library. G. All spaces should be cleaned and tables wiped clean. The proper disposal of all refuse is expected, especially liquids. Nothing (including water and ice) can be poured in the drinking fountains, landscaping, fountain, or grass areas. All food, beverages, and trash must be removed from the premises • immediately following the event. Any costs incurred in the removal of undisposed food will be charged back to the caterer. H. No gratuities are to be given to library staff. I. The City Library is not responsible for any property left on the premises by the caterer. Any property which is left on the premises for five (5) days after the end of the event may be disposed of by a designated library staff member, by public sale or destruction, without notice to the user or any other party, and without liability to the Library. ). Alcohol may be permitted provided user adheres to liquor laws as set forth by the Utah Department of Alcoholic Beverage Control. • 04.03 REVIEWED BY BOARD OF DIRECTORS 04.17.03 MTG MEETING ROOM USE • MTG3 CONFERENCE AND FACILITY RENTAL Page 10 MTG3.11 Nonlibrary Equipment 3.11.1 Use of nonlibrary equipment is subject to the approval of a designated library staff member. The City Library will determine the day and hour at which equipment is to be delivered. The Library is not liable for loss or damage to nonlibrary equipment. All nonlibrary equipment must be- removed immediately following the event. The Library is not responsible for any such equipment left on the premises for five (5)days after the event and it may be disposed of by a designated library staff member, by public sale or destruction,without notice to the user or any other party, and without liability to the Library. 3.11.2 All vendors are to arrive and exit only through locations designated by the City Library. 3.11.3 All furniture brought into the City Library must have protective caps to avoid scratching floors. Movement of furniture must be done with the use of rubber wheeled dollies or carts. All furniture must be lifted, not dragged. 3.11.4 Individuals or organizations reserving library space(s)are responsible for ensuring that all necessary safety provisions are observed. MTG3.12 Decor/Floral Decorations 3.12.1 Plans for decor are subject to the approval of a designated library staff member. Decor must not mar or affect the appearance of the library structure and must be removed immediately following the event. No tape, adhesive, nails, screws, metal hooks, or the like may be placed on or driven in any wall or surface of the City Library. 3.12.2 Any additional lighting must be approved by a designated library staff member. The lighting vendor must meet with a designated library staff member at least one week prior to the day of the event to discuss electrical requirements. 3.12.3 Candles must adhere to local fire code standards. 04.03 1111 REVIEWED BY BOARD OF DIRECTORS 04.17.03 MTG MEETING ROOM USE • MTG3 CONFERENCE AND FACILITY RENTAL Page 11 MTG3.13 Music, Entertainment, and Performance Groups The music,entertainment,or performance group must conform to City ordinances and be approved by a designated library staff member. Delivery, set up, and/or rehearsal time will be determined by a designated library staff member. During library hours, music performance is limited to the auditorium unless prior written approval is given_ by a designated library staff member. MTG3.14 Publicity 3.14.1 Individuals and organizations contracting to use library conference and facility space(s) for events are responsible for the event's publicity. 3.14.2 Directional and promotional signs are discouraged and are subject to prior approval by a designated library staff member one week before the event. Only library staff may post signs. Unauthorized signs will be removed. At no time may materials be attached to walls, window, doors, or furnishings. 3.14.3 Neither the name nor the address of the City Library may be used as a mailing address for organizations, groups, or individuals using meeting room facilities. Each group is responsible for handling its own RSVPs. MTG3.15 Liability 3.15.1 The City Library premises must be returned to its original condition,and groups or individuals using library property assume liability and shall be liable for any damage resulting from said usage as assessed by the Library. 3.15.2 The City Library does not assume responsibility for materials,equipment or any other article left by any other organization, group or individual in the Library and will not be liable for loss, theft or damage thereto. If items are left unclaimed for five (5) days after the end of an event, items may be sold by the Library at a public or private sale or destroyed without notice to the organization, group, or individual, and without liability of the Library. • 04.03 REVIEWED BY BOARD OF DIRECTORS 04.17.03 MTG MEETING ROOM USE MTG3 CONFERENCE AND FACILITY RENTAL Page 12 MTG3.16 Rooftop Garden Special Conditions 3.16.1 The City Library is not obligated to provide alternative indoor space if inclement weather prevents the use of terraces. 3.16.2 No smoking is permitted in the Main Library or on its Rooftop Garden 3.16.3 No items are to be thrown from terraces. 3.16.4 Noise is expected to be kept to a minimum and must adhere to city, county, state, and/or federal laws pertaining to such ordinances. • 40 04.03 REVIEWED BY BOARD OF DIRECTORS 04.17.03 Attachment 2 Facts About The City Library • • A dynamic civic resource which has provided 105 years of service to the Salt Lake community • • Free access to 580,000 items at the new Main Library; more than 700,000 items for check-out system-wide, including books, magazines, newspapers, DVDs, CDs, videos, and some 34,000 foreign language materials in 90 different languages • 163 computers for public use in the Main Library; 212 public computers system-wide • An estimated 15,000-20,000 people attended the grand opening of the new Main Library on February 8, 2003 • More than 600,000 items checked-out in February and March 2003; a 35% increase over 2002 • 500% jump in library card applications during the Main Library's first month of operation • Approximately 10,000 people of all ages attended a free library-sponsored 11111 program during the Main Library's first 10 weeks of operation • Over 18,000 people of all ages toured the Main Library during the first 10 weeks of operation • Nearly 1,500 meeting room reservations for programs, events and meetings have been made since the Main Library opened • More than 1.5 million people expected to visit the Main Library in 2003; half-a-million more than visited all six city libraries last year • Annual visits to more than 150 classrooms, conferences, neighborhood festivals, and ethnic fairs expand our reach into the community • Approximately 275 full and part-time employees system-wide; 250 volunteers system-wide(a 400% increase over 2002) • Serious budget shortfall of approximately$1,000,000 this year and into the future April 2003 The Salt Lake Tribune -- Utah's Statewide Newspaper Page 1 of 3 Attachment 3 • hrItkiribunr Utah f t) MONDAY ,1.--"" ` _ '�` si Lor2 for a car, April 28, 2003 ` .--,'- r,— _ ' mie Of RV? t, r®I i I Reader Feedback Learn about our new reader panel here. Quick Search Hip New Library Draws a Today's Headlines: Surplus of Volunteers in SLC •Cassidy PardonSought in Petition Utah Politics Ti Online Poll •Jazz Triumvirate 2002 Olympics By Rhina Nears End of a Two- Front Page Guidon Decade Run in Utah Contents The Salt • Lettuce in tores Past Editions Lake Search May Be Contaminated Tribune Archives F •Salt Lake Wetlands Weather Consensus Still TribTalk In his 1 Elusive Obituaries fifth-floor L - -" of_ l • Today's Page 1 office at - :� •Developers Already Help Desk the new *' ^ ` Casting Wistful Gaze Marketplace Salt Lake Auto Guide Volunteer Wei Chen keeps track of the queue for • Forest Tinderbox Career Guide City Internet terminals at the Salt Lake City Main Foreseen Real Estate Main Library. She is one of 250 unpaid helpers at the RVs, Boats,etc. Library new building, which has just 230 paid staffers. •Roily and Wells: ' (Trent Nelson/The Salt Lake Tribune) Disabled Caught in Grocery Guru volunteer UTA Feud t Shopping Guide coordinator Mike Nordenstrom stares at a 2-inch stack of Utah City Guide Utah Bride Guide applications on his desk. There are 150 of them, and he has Driv•Sfety-Its What He's Classifieds yet to find the time to get through them all. Nation/World His job was a lot easier at the old main library across the • sear take Utah plaza, which had 50 to 60 volunteers at any given time. Becoming a Business Sports Now, in a building more than twice the size of the old one, Real ors or Developers` Editorials - Commentary the number of unpaid helpers has ballooned to 250 since it . - Public Forum opened in early February. •Conservationists Are Concerned forLifestyle Sometimes it just seems like everyone wants a shot at a Bear River II two-hour-a-week gig. "We're fortunate,"Nordenstrom • Bonsai Show Style and Displays Ancient Art Substance says. "The building itself is a •Click here for a magnet. We have more volunteers •Homeless Fear multimedia than staff." Smart Backlash presentation on the new library. Teenagers, senior citizens, • professionals, recent immigrants and •Martinez: Minority Advisers May Not college students are vying for the chance to work for free in Have Community's the$84 million building that boasts mountain views, a cafe BHesteart Interests at in the nwriMlieal QPctinn anti a Znn-Qeat anditnrinm http://www.sltrib.com/2003/Apr/04282003/utah/utah.asp 4/28/2003 I be Salt Lake I ribune -- utan's statewiae Newspaper rage z or "I'm glad I got in early," says Chris Christiansen, who •SIC Ranks No. 1 in greets visitors and patrons in the lobby during his two hours Chad G vi a week. • Motives Sought for • The volunteers direct patrons to books, music or videos Shootings in the six-story, 240,000 square-foot building, register them for Internet use and make sure DVDs and CDs are returned •Zvi aonal Pa Is Venu ioNe forti Earth rk in good condition. Day Family Events Some of them are from Russia, India, Mexico and Japan, and they can help patrons looking for books in their native a Births languages. • For the Record "But the No. 1 question is 'Where's the bathroom?' " Nordenstrom said. (On every floor except ground level.) • More of Today's The volunteer corps has come in handy for the 230 or so Headlines full-and part-time workers whose ranks have scarcely increased even though the new library draws far more • Return to Top traffic than the old one. In March, for example, the library issued 5,000 more cards than in the same month a year ago. "It's a hot spot,"Nordenstrom says. "We're so heavily used. People bring their classes here and they bring their dates here, too." That means librarians have more questions to answer and aides have more materials to put away. Some volunteers have master's or doctorate degrees in library science but can't find jobs in a lean market, • Nordenstrom says, so they are donating their time to do what they love. Even entry-level positions such as library aides have about 40 applicants per opening. "Everybody wants to be here,"Nordenstrom says. That includes people who already have jobs. Helen Katz and Fred Ingram label DVDs for a couple of hours each week. Katz, who works at the post office, came in with the first major wave of volunteers. "I was here all the time," she says, so why not volunteer? So not only does she get the first look at new acquisitions, she gets to meet other people who share her love of books. Nordenstrom says he's glad for all the help during tough economic times, but there is a downside. One day, he recalls, he inadvertently used a sign asking for volunteers to block the sun through an office window, and the phone rang incessantly until he took it down. And while Nordenstrom still hasn't had time to call all the applicants, he still wants to accommodate anyone offering help. "We wanted this to be a community spot," he says. "And now it is." rguidos@sltrib.com http://www.sltrib.corn/2003/Apr/04282003/utah/utah.asp 4/28/2003 ey • THE CITY LIBRARY The Salt Lake City Public Library System OPERATING AND CAPITAL BUDGET • APPROVED BY LIBRARY BOARD OF DIRECTORS APRIL 17, 2003 FISCAL YEAR • 2003-2004 TABLE OF CONTENTS EXECUTIVE SUMMARY 1 • INTRODUCTION TO PLANS AND PRIORITIES 2 INCOME AND REVENUES 3 • Summary of General Property Tax Request 4 • Revenue Sources Operating Fund 4 • Revenue Sources Capital Fund 4 OPERATING BUDGET EXPENDITURES • Summary of Operating Budget Expenditures 7 • Buildings and Grounds 9 • Materials 12 • Personnel 17 • Services 20 CAPITAL BUDGET EXPENDITURES 26 • Summary of Capital Budget Expenditures 27 • Main Library 29 • Anderson-Foothill Branch 29 • Chapman Branch 30 • Day-Riverside Branch 30 • Sprague Branch 31 • Sweet/Avenues Branch 31 APPENDIX Strategic Plan 2002-2005 A • • THE CITY LIBRARY THE SALT LAKE CITY PUBLIC LIBRARY SYSTEM EXECUTIVE SUMMARY The 2003-2004 budget year poses one of the most difficult challenges in the history of the City Library. The opening of the new Main Library and the expansion of branch facilities have prompted record-breaking use of the facilities and services of the Library. The economic downturn and subsequent reduction of over 6%in property tax revenues is now leading to a severe operating shortfall for the Library in tandem with unprecedented demand and use. In the first few months of opening the new Main Library, visits to the building have tripled and circulation of materials has almost doubled. The additional irony is that the Library Board of Directors and the Salt Lake City Council planned effectively to support the new facilities with a tax increase in 1999. Unfortunately, that increase has now been severely reduced and therefore reductions in services, staff and collections will be necessary to live within the expected revenues for the coming year. This budget for 2003-2004 requires: ❖ A reduction in staff of approximately eight benefited employees 46 An 18%reduction in purchasing of new materials A 50%reduction in funding for programs ❖ Closure of Sunday service hours at the Day-Riverside and Sprague Branch Libraries ❖ Elimination of merit increases for staff during 2003-2004. Only the wage adjustment of 2%for employees in January 2004 will be supported ❖ Reduction of employer contribution to insurance premiums for double and family coverage to reduce current subsidies over the next three years ❖ A 15%reduction in the Services budget, such as travel,printing and supplies. Continuing efforts are being implemented for cost containment measures such as self-checkout circulation services, improved maintenance systems to control utility costs and centralized selection of materials, and program planning to reduce labor costs. The City Library will also seek to supplement revenues by increasing fees for nonresident library cards, including new revenue from leases, conferences and after-hours use of facilities. Fund raising efforts will continue, as will efforts to secure grant funding and program partnerships where appropriate. Even with the unexpected and serious decline in revenues, Salt Lake City and the City Library can take justifiable pride in the overwhelming success of the new facilities and the continued growth in use and demand for library services. Every effort will be made in the coming year to manage these reductions responsibly and wisely for the citizens we serve and to respond constructively to the opportunities resented with this renaissance in library service for Salt Lake City. Page 1 4/17/03 INCOME AND REVENUES THE PRESENT The tax rate set for 2002-2003 of.000755 generated $619,480 less in property tax revenues than anticipated. This follows a loss of$105,302 of tax revenue experienced in 2001-2002. Interest revenue has also dropped in proportion to lower investment rates. These reductions have come while the City Library has remodeled one branch library, expanded two branch libraries, and opened the new Main Library. THE FUTURE Difficult as these fiscal constraints are, and in recognition of challenging economic conditions, the City Library Board of Directors is not requesting an increase in the property tax rate for the 2003- 2004 fiscal year. In 1999-2000, the Salt Lake City Council committed to an increase in the tax rate in anticipation of the support necessary for the new Main Library and expanded branches. The shortfalls experienced over the past two years have seriously reduced the revenues necessary to fulfill this intention. Use at every location is increasing with the new Main Library sustaining a pattern of growth of close to double the 2002 circulation numbers. Every effort has been made, however, to supplement and diversify the budget with revenues from leased spaces, fund raising, and fees for after-hours use of library facilities. The City Library instituted cost containment strategies in a variety of areas, including conservative staff growth for expanded facilities, increased use of volunteers, and more efficient mechanical systems. Even with these measures, the level of reductions projected for the next year will necessitate reductions in staff, services, and collections to stay within the projected budget. The Board and staff recommend the following austerity measures for 2003-2004: ❖ Reduce staff by eight full-time employees. ❖ Freeze merit increases for staff during 2003-2004. ❖ Reduce materials expenditures by approximately 18%. ❖ Reduce Sunday service hours at the Day-Riverside and Sprague Branch Libraries. Sunday hours at the Main Library will be supported by staff throughout the System. ❖ Reduce funds for programs throughout the System by almost 50%. ❖ Begin process to eliminate current subsidy for insurance premiums for double and family coverage. Many other budget areas have also been reduced to achieve the required reductions, including supplies and travel. • Page 3 4/17/03 • GENERAL PROPERTY TAX Two years of reduced property tax revenues have prompted careful fiscal planning and resource allocation. The recent reductions came during the most explosive increase in use seen in the history of the Library with the opening of the new Main Library. Circulation at the Main Library has averaged over double last year's use, and all branches show substantial increases as well. Visits to the Main Library have more than doubled in the new facility. The increased operating revenues for new and expanded facilities supported by the Salt Lake City Council with a tax rate increase in 1999-2000 have now been significantly reduced with the changed economic picture. COPY MACHINES AND SUNDRY REVENUE The City Library provides copy machines at each location as a service to the public and to reduce vandalism, destruction, and loss of library materials. This is especially useful in the case of periodicals and reference books which may not be checked out from the Library. Use of copy machines and subsequent revenue continues to decrease due to the provision of more electronic • information services. FINES AND COLLECTIONS Based upon the increased use the City Library is seeing at all locations, we project an increase in fines for 2003-2004. The Library Board of Directors has also determined that an increase in the fee charged for nonresident library cards is necessary under these conditions. We propose that the fee be doubled from $40.00 to $80.00 per year resulting in approximately$10,000 in new revenue. INTEREST Interest rates have dropped significantly and continue to result in decreased revenue for both operating and capital funds. • 4/17/03 Page 5 SUMMARY OF OPERATING BUDGET EXPENDITURES 2001-2002 2002-2003 2003-2004 ACTUAL BUDGET BUDGET BUILDINGS AND GROUNDS Buildings-Maintenance $ 106,133 $ 130,000 $ 130,000 Equipment-Maintenance 36,216 41,000 41,000" Buildings and Equipment-Contract Services 203,863 345,000 240,000 Equipment Purchases 16,102 30,000 25,000 Heating and Fuel 17,565 65,000 65,000 Lights and Power 65,546 195,000 195,000 Motor Equipment-Service and Maintenance 5,454 6,000 6,000 Rent-Property and Equipment 4,575 6,000 6,000 Water 14,771 21,500 25,000 TOTAL BUILDINGS AND GROUNDS $ 470,225 $ 839,500 $ 733,000 MATERIALS Binding $ 12,897 $ 8,500 $ 6,000 41, Books and Reference Sources 1,570,466 1,013,606 858,313 CD-ROMS/Circulating 16,871 6,000 3,000 Computer Reference Sources 84,128 79,000 63,000 Fee-based Reference Services 331 1,000 1,000 Maps - 500 - Periodicals 111,984 135,500 105,000 Prints and Slides 8,467 1,000 - Sound Recordings 365,316 201,500 150,000 Visual Recordings 291,548 200,000 150,000 TOTAL MATERIALS $ 2,462,008 $ 1,646,606 $ 1,336,313 I 4/17/03 _ Page 7 • • 2001-2002 2002-2003 2003-2004 ACTUAL BUDGET BUDGET PERSONNEL Salaries and Wages $ 5,330,544 $ 6,047,076 $6,049,723 Employees' Insurance 562,994 709,446 556,789 Social Security 395,518 454,740 450,053 Retirement 395,957 461,538 482,435 State Unemployment Compensation 9,651 8,000 15,000 Other-Utah Transit Authority 5,311 6,000 6,000.. TOTAL PERSONNEL $ 6,699,975 $ 7,686,800 $ 7,560,000_ SERVICES Cataloging Charges $ 82,098 $ 96,000 $ 80,000 City Administrative Charge 39,524 27,000 27,000 Copier/Printer Supplies 52,219 48,000 59,000 Insurance 95,261 100,000 175,000 Library Supplies 122,258 128,000 120,000 Office Supplies 16,250 18,000 15,000 Outsourcing 205,972 60,000 - Payroll Processing Charge - 14,000 14,000 Postage 96,911 100,000 100,000 0 Professional and Technical 31,402 36,000 36,000 Professional and Technical/Attorney 1,509 7,000 3,000 Programming 76,492 255,000 130,000 Publicity 48,680 81,000 50,000 Staff Training and Development 41,029 30,000 25,000 Sundry Expense 31,105 30,000 25,000 Telephone 106,257 125,000 125,000 Travel 23,171 28,000 19,000 TOTAL SERVICES $ 1,070,138 $ 1,183,000 $ 1,003,000 TOTAL OPERATING EXPENSES $10,702,346 $11,355,906 $10,632,313 COPIER DEBT 11,439 - - CONTINGENCY - 950,000 100,000 TOTAL $10,713,785 $12,305,906 $10,732,313 • 4/17/03 - Page 8 BUILDINGS AND GROUNDS HIGHLIGHTS The public investment in capital improvements for the City Library has been significant. The children's area at the Chapman Branch Library was remodeled in the fall 2002, the new Main Library opened in February 2003, and the expansion of the Anderson-Foothill Branch Library was completed in March 2003. The proposed budget reflects the costs for maintaining these newly enlarged facilities. Designs were developed to conserve resources and reduce utility costs whenever feasible. FUTURE PRIORITIES Priorities for 2003-2004 will include: ❖ Continual use of efficiencies to save costs and provide safe, comfortable buildings. ❖ Continual monitoring of utilities to conserve costs whenever possible. ❖ Develop and sustain creative and complementary partnerships with future tenants of existing Main Library. ❖ Conduct a post occupancy survey of the new Main Library. ❖ Ensure commitment to ongoing capital improvement funding and plan. ❖ Initiate planning process for proposed southwest branch library. ❖ Work in concert with City and other interested parties to complete development of the Library Square block. • Page 9 4/17/03 SALT LAKE CITY PUBLIC LIBRARY BUILDINGS, GROUNDS AND EQUIPMENT BUDGET 2002-2003 2003-2004 BUDGET BUDGET Buildings-Maintenance $ 130,000 $ 130,000 Equipment-Maintenance 41,000 41,000 Buildings and Equipment-Contract Services 345,000 240,000 Equipment Purchases 30,000 25,000 Heating and Fuel 65,000 65,000 Lights and Power 195,000 195,000 Motor Equipment-Service and Maintenance 6,000 6,000 Rent-Property and Equipment 6,000 6,000 Water 21,500 25,000 TOTAL BUILDINGS AND GROUNDS $ 839,500 $ 733,000 BUILDINGS-MAINTENANCE Last year's budget baseline recognized extra costs needed to operate the new Main Library • and expanded branch libraries; therefore, no additional funding is requested this year. The ability to project costs to maintain a much larger Main Library is challenging. With the increased square footage at the branches and the new Main Library,we anticipate no change in this budget center this year. Every effort will be made to control costs. EQUIPMENT-MAINTENANCE This budget supports ongoing maintenance costs of all equipment (not currently on maintenance contracts). BUILDINGS AND EQUIPMENT-CONTRACT SERVICES The City Library routinely contracts for a variety of services when outsourcing is a more efficient and economical solution. This category includes such things as computer service and maintenance contracts, elevator maintenance, security, garbage removal, recycling, indoor plant maintenance, copier and alarm service contracts, window washing, and fountain maintenance. • Page 10 4/17/03 Austerity measures will be implemented to reduce the frequency and scope of some contracts where possible. EQUIPMENT PURCHASES Recent capital improvements will reduce needs in this area for 2003-2004. UTILITIES No increase is requested for utilities. Although the Library does not yet have a full year of experience to confidently project costs of the new Main Library, it is expected that the funds in this budget center should be adequate for this year. Designs were developed to conserve energy and reduce future costs, and the first few months appear to be on track. MOTOR EQUIPMENT-SERVICE AND MAINTENANCE This account covers operational and maintenance costs related to the City Library's delivery and maintenance vehicles. The Library also has one vehicle for outreach services to the community. • RENT-PROPERTY AND EQUIPMENT Current allocation of funds should be adequate for 2003-2004. WATER With increases in water costs, additional funds are needed in this account. Page 11 4/17/03 MATERIALS The City Library continues its commitment to high quality collections by sustaining a significant portion of the operating budget for materials acquisition. Funds authorized by the Salt Lake City Council to operate the new Main Library were devoted to collection development for three years. Thousands of new items were available to patrons on opening day February 8, 2003. Ongoing funds for this budget are approximately 12.45% of the operating budget being devoted to this - critical purpose. HIGHLIGHTS In 2002-2003: ❖ Significantly increased book and audiovisual collections at all locations with particular emphasis on strengthening the Main Library collection. ❖ Improved and increased collections in support of growing and culturally diverse communities. To be responsive to a variety of cultures and literatures, the City Library selected books, periodicals, and audiovisual materials in many languages. Over 90 • languages are now represented in our collection. ❖ Continued to enlarge the popular digital video disc(DVD) collection. •3 Increased the provision of access to on-line resources and collections through Pioneer, a cooperative statewide library and education network, and other web-based informational services. ❖ Centralized collection development for more efficient and effective selection and acquisition of materials. FUTURE PRIORITIES Priorities for 2003-2004 will include: ❖ A substantial and significant cut in dollars available for materials which will preclude an expanded collection for the Main Library and branch locations. The goal this year will be to maintain the integrity and quality of the collections the City Library has developed over the years, a challenge that will be particularly difficult given a huge increase in circulation at the new Main Library(150% over the first two months of operation in 2003). The Library will spend significantly Tess (12.5%) than the 16% of the operating budget called for in the strategic plan. Page 12 4/17/03 ❖ Cuts to the materials budget will be distributed on a fairly even percentage basis. The Library will try to buy as many titles as before but will purchase fewer duplicates. This will maintain the depth and breadth of the current collection but will translate into patrons waiting longer for titles they request while staff work harder to hold requested items and transfer them from one location to another. Because of purchases made in anticipation of strengthening the opening day collection at the new Main Library, we will not purchase maps,prints and slides,but these are not significant savings. ❖ A newly centralized selection team will evaluate and analyze departmental and branch collections to assure that materials are distributed where they are most needed within the System. This coordination of selections saves both time and money. 4110 Page 13 4/17/03 SALT LAKE CITY PUBLIC LIBRARY MATERIALS BUDGET 2002-2003 2003-2004 BUDGET BUDGET Binding $ 8,500 $ 6,000 Books and Reference Sources 1,013,606 858,313 CD-ROMS/Circulating 6,000 3,000 Computer Reference Sources 79,000 63,000 Fee-based Reference Services 1,000 1,000 Maps 500 — Periodicals 135,500 105,000 Prints and Slides 1,000 — Sound Recordings 201,500 150,000 Visual Recordings 200,000 150,000 TOTAL MATERIALS $ 1,646,606 $ 1,336,313 The primary mission of the City Library is to provide access to information and ideas through materials and services for all members of the community. The Library's ability to fund the materials budget at adequate levels is a continual challenge under the most optimal circumstances due to increased fixed costs, the continually rising cost of materials, and increasing demand for materials in a growing variety of formats. The infusion of funds over the past three years has helped greatly to improve the strength of the fundamental core collections at the Main Library. This budget reflects not only a shift in funds from one-time collection development to operating costs for the new Main Library, but a decrease of 22%, or $380,857, from what the Library would normally dedicate to materials,which is 16%of the operating budget. BINDING This budget reflects a minimal amount required to bind back issues of well used magazines. Binding periodicals is vital for the City Library's ability to organize and protect its in-depth magazine collection. Even with the increase in access to back issues of magazines on-line, many patrons prefer the original hard copy edition and binding enables the Library to effectively store and protect the collection. Page 14 4/17/03 BOOKS AND REFERENCE SOURCES Patron surveys and comments continually emphasize the need to place a high priority on library collections and resources. Use of traditional print resources continues to grow, and the City Library strives to sustain book collections while also experiencing exponential demand for other formats. Fewer duplicate titles, especially in audiovisual formats, will translate into patrons waiting longer for titles they request while staff work harder to hold requested items and transfer them from one location to another. CD-ROMS/CIRCULATING This format will be reduced because of decreased demand. COMPUTER REFERENCE SOURCES The City Library faces a continual demand for delivery of information products to the Library, homes, and businesses. This budget requires a reevaluation of current on-line resources to discontinue data bases that are less used or may be similar to other available data bases. Also, the Library will renew licenses for some on-line products for library use only. Fewer resources available on a dial-up basis will be an inconvenience to library users and reverses a longstanding goal. FEE-BASED REFERENCE SERVICES Fee-based reference services provide access to hundreds of data bases containing both bibliographic and primary source information in a wide range of subjects. In recent years, some of this material has been made available over the Internet at no cost, thus allowing a significant cost containment in this budget area. MAPS Acquisition of maps in anticipation of strengthening the collection for the new Main Library allows us to forgo purchases this year. The savings will be about$500. • Page 15 4/17/03 111 PERIODICALS Magazines and newspapers remain a vital source of current and historical information for patrons. Use of the magazine collections throughout the City Library System is already heavy. With improved indexing and access, use will continue to grow. Over the past four years, the Library has attempted to control costs by absorbing subscription increases through the corresponding reduction of less-used titles. New titles have been added in preparation for the move to the new Main Library, and multiple copies of some titles will be added to meet demand for both reference and circulating issues. The Library has also supported the development of"zines," small and independently produced newsletters of particular interest to teen patrons. This budget requires a reevaluation of subscriptions and the elimination of less popular and less-used titles, a considerable loss to those patrons who, though fewer in number, find these publications important and useful. The Library will also use circulating issues from branches to replace lost issues for the Main Library collection and will purchase some newspapers from vendors who are less expensive but cannot deliver the publications as quickly and timely as library patrons are accustomed to. 111, PRINTS AND SLIDES We will purchase no prints and slides in this budget cycle. SOUND RECORDINGS Circulation in sound recordings continues to rise at all locations, especially in the area of compact discs and books-on-tape/compact discs. We will purchase fewer copies, and patrons will have to wait longer for high demand items. VISUAL RECORDINGS Demand for materials in the videocassette format is lessening to a degree as the DVD format becomes more common and popular. However, both formats are very popular and heavily used. With such heavy use, standard titles must be replaced on an ongoing basis. This budget will mean fewer copies and more selective replacement. S Page 16 4/17/03 PERSONNEL HIGHLIGHTS The City Library developed excellent staff and volunteer programs that allow for a high level of reference and readers' advisory service as well as materials and programs that promote open access to information. Library staff delivers outstanding service to all members of the Salt Lake community. During 2002-2003,the Library: ❖ Implemented a revised staffing plan; hired and trained staff and substitutes to support the opening of the new Main Library and the expansion of the Anderson-Foothill and Chapman Branch Libraries. ❖ Vastly increased the size of the volunteer program by using volunteers to assist patrons in the use of technology, performing clerical tasks, support of programming, and serving the homebound patron. ❖ Shifted employee benefit management to the Library from Salt Lake City Corporation, realizing savings in health insurance and payroll costs. jink FUTURE PRIORITIES Priorities for 2003-2004 will include: ❖ Renewed focus on the training plan to increase staff flexibility. Staff will need ever- expanding skills. ❖ Continued growth and expansion of the volunteer program. ❖ Review cost containment of staff benefits and initiate process to eliminate subsidy for insurance premiums for double and family coverage. ❖ Maintain staff utilization data for continuous monitoring of staffing levels. ❖ Strategies to recognize and reward staff for exemplary performance in lieu of merit-based pay raises. S Page 17 4/17/03 SALT LAKE CITY PUBLIC LIBRARY 11111 PERSONNEL BUDGET 2002-2003 2003-2004 BUDGET BUDGET Salaries and Wages $ 6,047,076 $6,049,723 Employees' Insurance 709,446 556,789 - Social Security 454,740 450,053 Retirement 461,538 482,435 State Unemployment Compensation 8,000 15,000 Other-Utah Transit Authority 6,000 6,000 TOTAL PERSONNEL $ 7,686,800 $7,560,000 The City Library has proven to have a strong, well educated, well trained staff. The staff works in an environment where cross training is a given and staff develop additional skills each year. 110 The volunteer program has become extremely important. The role of the volunteer has broadened with the opening of a new, larger main library. The numbers have leapt from over 600 volunteers in 2001 to over 900 volunteers contributing 14,000 hours in 2002, with the program doubling in size the first quarter of 2003. SALARIES AND WAGES The City Library added some new staff due to the new, larger Main Library building, but designed that building to maximize a leaner staff. This budget reflects a loss of salaried positions, and the temporary halt of the Library's merit program. Monies in support of Sunday hours have been deleted leaving Sunday support hours to come from departments throughout the System. Lost service hours will come from all library locations. If funding permits, a 2% wage adjustment will be granted in January 2004 in an attempt to keep library positions viable in the library field. Page 18 4/17/03 EMPLOYEES' INSURANCE The City Library is a new member of the PEHP Utah Local Governments Trust. As a cost I) containment measure, the Library has realigned the staff portion of health insurance premiums. The Library desires to eventually payout an equal amount for each salaried staff member. Corrected over a three-year period, the Library will discontinue the practice of subsidizing staff who select double or family coverage. Retirees' insurance and Workers Compensation costs have risen. SOCIAL SECURITY The City Library will experience a lower Social Security cost due to increased staff use of pretax dollars for health coverage. RETIREMENT The City Library's rate of 8.69% has increased to 9.62% with the Utah State Retirement System. The Library no longer has staff on the more expensive contributory system. STATE UNEMPLOYMENT COMPENSATION The City Library has increased this line in anticipation of reducing salaries by a reduction in force of attrition is not sufficient to reduce full-time employees. UTAH TRANSIT AUTHORITY The City Library will continue to promote its transit pass program to staff to reduce the need for employee parking. O Page 19 4/17/03 SERVICES HIGHLIGHTS Major highlights of 2002-2003: Outreach efforts continue to grow and expand. Our goal is to provide information about the - City Library, its collections, resources, programs, and services to all members of the community, and to promote equity of access for the traditionally underserved populations of Salt Lake City. These include new and nonreaders, people with disabilities, new immigrants and refugees, people in poverty, and the people whose social diversity is based on race, ethnicity, age, or other differences. The Library has participated in such events as Cinco de Mayo celebrations; the Great Salt Lake Book Festival; street fairs in the Avenues, Sugar House and the City's west side; Earth Day celebrations at Hogle Zoo and Tracy Aviary; the Utah Issues Poverty Conference; and the Kids Fair at the Neuropsychiatric Institute. ❖ Attendance at programs is increasing as the City Library broadens the range and depth of topics and speakers. Bilingual reading and discussion programs, concert series, and multicultural holiday programs represent just a few of the many free events hosted by the Library in 2002-2003. A special project entitled We Save Them?/They Save Us? featured • artwork by refugee youth, an Amnesty International Refugee Film Festival and discussions. The theme of the popular summer reading program was "Slide Into Summer With Books." The Salt Lake Stingers, KUTV, Big-D Construction, and the Friends of the Library were sponsors. Teens participated in Make A Racket, a summer series which featured a zine workshop, self-improvement techniques, and a dance workshop. In March 2003, James Burke kicked off the first annual Dewey Lecture Series, drawing an audience of 500. ❖ The City Library collaborated with many other organizations and agencies to leverage funds and develop strategic alliances. We are actively working with groups such as Global Artways, Downtown Alliance, Utah Humanities Council, Utah Science Center, local radio and television stations, local businesses, and Salt Lake City Corporation. The new library logo was unveiled and printed on street banners announcing the opening of the new Main Library. FUTURE PRIORITIES Priorities for 2003-2004 will include: ❖ Continue to develop partnerships with local civic, cultural, and media organizations to enhance the quality of programs and increase the effectiveness of publicity while reducing library funding for such programs significantly. Page 20 4/17/03 ❖ Develop an informational campaign to promote the benefits of owning a City Library card. Our goal is to issue a library card to every Salt Lake City citizen. 411 ❖ Continue the successful Dewey Lecture Series but at a reduced level. Seek community and corporate partners who will help us draw high-caliber speakers and share in the marketing and expense of hosting such a series. ❖ Host the Salt Lake Book Festival at the new Main Library. Working with established festival organizers, broaden the scope and range of authors appearing at this two-day event and increased attendance. S et Page 21 4/17/03 SALT LAKE CITY PUBLIC LIBRARY SERVICES BUDGET 2002-2003 2003-2004 BUDGET BUDGET Cataloging Charges $ 96,000 $ 80,000 City Administrative Charge 27,000 27,000 Copier/Printer Supplies 48,000 59,000 Insurance 100,000 175,000 Library Supplies 128,000 120,000 Office Supplies 18,000 15,000 Outsourcing 60,000 - Payroll Processing Charge 14,000 14,000 _ Postage 100,000 100,000 Professional and Technical 36,000 36,000 Professional and Technical/Attorney 7,000 3,000 Programming 255,000 130,000 Publicity 81,000 50,000 Staff Training and Development 30,000 25,000 Sundry Expense 30,000 25,000 40 Telephone 125,000 125,000 Travel 28,000 19,000 TOTAL SERVICES $ 1,183,000 $ 1,003,000 CATALOGING CHARGES The majority of these expenditures are spent through the City Library's contract with OCLC (On-line Computer Library Center, Inc.), who provides us with the BCR (Bibliographic Center for Research) pricing plans for cataloging library materials. In the past, the Library has taken advantage of BCR's fixed-fee pricing plan, wherein the costs are fixed and determined by the previous year's volume. With a decrease to the Library's materials budget, we will forgo this pricing plan during 2003-2004 and will resume this pricing plan when it again becomes cost effective. In addition to OCLC charges, the Library uses this fund to pay for outsourcing the acquisition and cataloging of many of the 90 international languages represented in the Library's collection. 40 The decrease in this budget center is a result of purchasing fewer materials this budget year. Page 22 4/17/03 CITY ADMINISTRATIVE CHARGE These charges from Salt Lake City Corporation are administrative fees for the City Library's 111 related costs for City Council,budget/policy, and cash management. COPIER/PRINTER SUPPLIES Because of the increased number of computers systemwide and the high volume of Internet use, this budget must be increased which mirrors the increased usage of the new Main Library, as well as the branches. This budget covers the costs of toner and paper for public computer printers and public copiers throughout the City Library System. Due to the popularity of the Internet, use of public printers has increased significantly while copier use has declined. In an effort to reduce toner costs for the public computer printers, the toner cartridges are refilled as many times as possible before new cartridges are purchased. INSURANCE The City Library practices careful application of risk management principles and regular competitive bidding to ensure the best coverage for the lowest cost. Even with careful management, insurance premiums are constantly increasing. The increase of 78% for the Library's insurance coverage for 2003 was reflective of the completed new Main Library, expanded branches, along with increased insurance costs nationwide. The policy includes earthquake and terrorism coverage. LIBRARY SUPPLIES With a decrease in the materials budget,this budget center can be reduced slightly. Supplies are purchased in bulk in order to contain costs and to obtain favorable discounts, but packaging and processing materials in the newer formats (CD-ROMs and CDs)cost more. OFFICE SUPPLIES Every effort will be made to contain costs and seek efficiencies in this area. • Page 23 4/17/03 CITY ADMINISTRATIVE CHARGE 1111 These charges from Salt Lake City Corporation are administrative fees for the City Library's related costs for City Council,budget/policy, and cash management. COPIER/PRINTER SUPPLIES Because of the increased number of computers systemwide and the high volume of Internet use, this budget must be increased which mirrors the increased usage of the new Main Library, as well as the branches. This budget covers the costs of toner and paper for public computer printers and public copiers throughout the City Library System. Due to the popularity of the Internet,use of public printers has increased significantly while copier use has declined. In an effort to reduce toner costs for the public computer printers, the toner cartridges are refilled as many times as possible before new cartridges are purchased. INSURANCE The City Library practices careful application of risk management principles and regular 411 competitive bidding to ensure the best coverage for the lowest cost. Even with careful management, insurance premiums are constantly increasing. The increase of 78% for the Library's insurance coverage for 2003 was reflective of the completed new Main Library, expanded branches, along with increased insurance costs nationwide. The policy includes earthquake and terrorism coverage. LIBRARY SUPPLIES With a decrease in the materials budget, this budget center can be reduced slightly. Supplies are purchased in bulk in order to contain costs and to obtain favorable discounts, but packaging and processing materials in the newer formats (CD-ROMs and CDs)cost more. OFFICE SUPPLIES Every effort will be made to contain costs and seek efficiencies in this area. S Page 23 4/17/03 OUTSOURCING This fund was established in fiscal year 1999-2000 to assist the Technical Services Department in handling the extra load of new materials needed. These services will be curtailed for 2003-2004 with the reduction in purchasing materials. PAYROLL PROCESSING CHARGE The City Library uses independent vendors to process payroll checks and administer the Library's Section 125 Cafeteria Plan. POSTAGE With current postal rates and increased library circulation, which results in more overdue notices, this budget center should be maintained. Mailing The City Library News, the Library's quarterly newsletter, to all Salt Lake City residents twice each year during the spring and the fall has been a powerful tool for informing residents of what is happening at the Library. In order to maintain this budget center, we will reduce the city-wide mailing to once during 2003-2004. PROFESSIONAL AND TECHNICAL 4IP) This budget supports funding for the annual financial audit, attorneys' fees, memberships in professional activities and organizations, and the occasional use of an outside consultant for library projects. The reduction in this area is related to the decrease in attorney consultations. PROGRAMMING This budget center has been reduced significantly in recognition that last year's plan was for a one-time increase for the opening events and programming of the new Main Library. Demand and interest for public programming and interpretive events continue to grow. Plans are in place to stimulate civic dialogue by bringing nationally acclaimed speakers before the community through the Dewey Lecture Series of Distinguished Guests which began in March 2003. A fund-raising campaign is ongoing to fund these programs. • Page 24 4/17/03 PUBLICITY 11) This adjusted budget should be adequate to maintain needed publicity and printing needs for 2003-2004. STAFF TRAINING AND DEVELOPMENT The City Library continues to build an excellent staff and to support a training program that encourages staff to expand their expertise and knowledge in support of library goals. The reduction is necessary to be able to support other budget centers. SUNDRY EXPENSE There are a number of various, small expenses that are not easily categorized, such as advertising for procurement bids, advertising for job openings, staff identification badges, and miscellaneous expenses. This budget center supports these expenses. Other sundry expense items will be monitored in an effort to reduce this budget center. TELEPHONE With the upgrade and expansion of the telephone system, the City Library is better able to serve patrons. Steps will be taken to make the best use of telephone equipment in an effort to maintain the costs. TRAVEL This account pays the travel-related expenses for library staff and board members to attend conferences, meetings, and workshops. In addition, all mileage allowances are paid out of this budget center at the reimbursement rate of 30 cents per mile. Travel will be reduced this year in order to support other needed budget centers. Page 25 4/17/03 CAPITAL BUDGET EXPENDITURES HIGHLIGHTS During 2002-2003,the City Library: ❖ Completed the expansion of the Anderson-Foothill Branch Library. ❖ Completed remodeling of the Chapman Branch Library and the addition of a new, enlarged children's area. ❖ Completed and opened the 240,000 square-foot Main Library. ❖ Began initial discussions for a new, southwest area branch library. FUTURE PRIORITIES During 2003-2004,the City Library will: ❖ Further develop plans for a new southwest area branch library. 11W ❖ Complete post-occupancy evaluation of the new Main Library. S Page 26 4/17/03 SALT LAKE CITY PUBLIC LIBRARY SUMMARY OF CAPITAL BUDGET EXPENDITURES 2003-2004 BUDGET CAPITAL IMPROVEMENTS PROGRAM Branch Building Fund $ 700,000. TECHNOLOGY ENHANCEMENT Systems Replacement Fund 50,000 VEHICLE REPLACEMENT FUND 10,000 BUILDINGS AND GROUNDS Capital Repairs 150,000 PRIOR YEAR/CONTINGENCY 65,000 TOTAL CAPITAL EXPENDITURES $975,000 40 Page 27 4/17/03 CAPITAL IMPROVEMENTS PROGRAM With the completion and opening of the new Main Library in February 2003 and the completion.of the Anderson-Foothill Branch Library expansion in March 2003, the City Library has completed the Capital Improvements Program initiated in 1997. Preliminary plans are now being explored for the development and construction of a new southwest branch library as a part of the Library's Strategic Plan for 2002-2005. Initial funding for this project has been set aside as a part of the capital budget savings. TECHNOLOGY ENHANCEMENT A major expansion and upgrade of the City Library's computer system was completed in 2002-2003. Funds are set aside each year to replace equipment as necessary and develop a long- term savings fund as possible. VEHICLE REPLACEMENT FUND The City Library will need to replace one van during 2003-2004. Savings from previous years will supplement this additional amount to purchase the vehicle. 111, BUILDINGS AND GROUNDS This fund supports ongoing major capital repairs at all locations as necessary. PRIOR YEAR/CONTINGENCY This fund is maintained to deal with carryover projects and emergency or unanticipated needs. 40 • Page 28 4/17/03 NAME Main Library LOCATION 210 East 400 South Salt Lake City,Utah 84111 Anchoring Salt Lake City's civic core, Library Square provides a connection and transition from the Central Business District to the residential neighborhoods adjacent to downtown. One of the most heavily used main libraries in the United States, the new Main Library has become a major attraction for residents and visitors since its opening February 8, 2003. DESCRIPTION A 240,000 square-foot concrete and glass structure with exceptional views of the City and surrounding mountains, the new Main Library features book, periodical and media collections of over 500,000 items; reading galleries; a technology center; 315-seat auditorium and adjoining meeting spaces; small conference rooms; and selected community shops designed to enhance the Library's mission. The adjoining plaza features a reflecting pool, garden and granite fountain. Underground parking for approximately 600 vehicles provides parking for city and library employees as well as library visitors. NAME Anderson-Foothill Branch LOCATION 1135 South 2100 East Salt Lake City,Utah 84108 The Anderson-Foothill Branch has a high profile location on the east bench oriented to take best advantage of its passive solar design. DESCRIPTION The pleasing design of the branch has two unique elements as part of its plan. The first is a passive solar energy design that includes earth berming, window placement for solar heating, and zone supplemental heating/cooling. The second element of this 14,900 square-foot community library built in 1985, expanded in 1992 and in 2002, is a modular design. 4/17/03 Page 29 NAME Chapman Branch 11) LOCATION 577 South 900 West Salt Lake City, Utah 84104 Serving a multiethnic community on the west side of Salt Lake City, the Chapman Branch is located on a major street with a north-south orientation. DESCRIPTION Considered to be one of the finest Carnegie Libraries in the West, this 8,900 square-foot library has two levels. Since its opening in 1918, it has been an important part of city services to Westside residents. The Library was completely renovated, including updated HVAC, following the collapse of the roof during 1993. A major remodel of the basement level meeting space in 2002 resulted in a much improved children's area and expanded service and collection space for adults on the ground level. NAME Day-Riverside Branch LOCATION 1575 West 1000 North Salt Lake City, Utah 84116 This 13,000+square-foot branch library opened in September 1996. DESCRIPTION This beautiful facility was designed to complement the residential neighborhood with sensitivity to its site on the Jordan River Parkway. An open space plan, with a large community meeting room and outside deck area, will accommodate this growing community for many years. • 4/17/03 Page 30 NAME Sprague Branch LOCATION 2131 South 1100 East Salt Lake City,Utah 84106 The Sprague Branch is situated in the very center of the business area of Sugar House. DESCRIPTION The high-gabled English Tudor style building has served the Sugar House community for three generations. The building was selected by the American Library Association in 1935 as the "Most Beautiful Branch Library in America." The two-level facility was renovated in 1989-90. The Reading Room on the first floor was remodeled in 1993-94. A new slate roof was installed in the fall of 1996. An expansion project to add a new, larger meeting room and remodel the building was completed in April 2001, which increased the square footage to 9,700. NAME Sweet/Avenues Branch LOCATION 455 "F" Street Salt Lake City,Utah 84103 The Sweet Branch was expanded and remodeled to meet ADA requirements during 1993-1994. It serves the Avenues neighborhood and is situated in the heart of the community. DESCRIPTION The Sweet Branch is the sister branch of the Anderson-Foothill Branch using the same modular design. The branch contains over 8,000 square-feet of service space, including a community program and meeting space. Page 31 4/17/03 APPENDIX A . STRATEGIC PLAN 2002-2005 SERVICES Improve, Expand, and Enhance Access to Resources and Programs • Empower patrons to use the City Library more effectively by providing them with instruction, beginning with English and Spanish, on how to use the library, the catalog, electronic resources, the Internet, and on-line databases. Develop a monitoring and evaluation system to gauge the success of our instruction. • Implement the Service Evaluation Committee's annual recommendations and continually evaluate all services. • Introduce expanded weekend evening hours at Library Square, providing a gathering place for patrons and a variety of programming options, particularly for teens. 0 • Expand telephone reference hours in 2004. Explore offering on-line reference 24/7 in 2004. • During 2003-2004, evaluate opening all branches on Sundays. Expand and Enrich Outreach to the Community • Evaluate existing, and develop effective, community partnerships targeting areas of the community we are not reaching. • Expand and coordinate Outreach Services, providing more outreach to diverse populations through an annual plan. • Launch library card campaign by August 2002 with the goal of issuing a library card to each City resident. Double library visits in 2003. • Capitalize on opportunities to enhance our image locally, regionally, nationally, and within the library profession through positive media driven by a spectacular new building, logo design, and expanded programming. 411 • Improve services to teens immediately through targeted marketing and more effective outreach. -1- Provide Quality Programs • Continue to offer quality programs and coordinate them more effectively. 111, Establish the Adult Services Committee in 2002. • Create a Programming position focusing on coordinated programs and exhibitions. • Increase effective coordination with existing programs targeted to youth. • Stimulate civic dialogue by bringing nationally acclaimed speakers before the community through the Dewey Lecture Series of Distinguished Guests beginning in March 2003. • Encourage the sharing of ideas and creativity through the Performing Arts program series beginning in April 2003. • Offer quality exhibits throughout the City Library System, including an enhanced traveling exhibit program. • Present the traveling exhibits Surrealist Visions and Dali: The Halsman Photographs in 2003. • Host the national traveling exhibit Frankenstein: Penetrating the Secrets of Nature by 2005. • Develop Literacy Programs and Partnerships • Review and improve existing literacy resources and services in 2003. • Identify potential partners among literacy service providers and improve service coordination. Expand the Library's Role as a Center for Civic Dialogue • Create a venue at Library Square where ideas and opinions can be shared and tested. • Enrich the civic culture of Salt Lake City by hosting, promoting, and facilitating open debates, dialogues, and discussions on current and compelling issues. 411 -2- I1. RESOURCES Collections • Maintain 16% of the operating budget for materials. • Purchase and expand collections in new and on-line formats that are viable and have an extended life span. • Centralize collection development to provide better collections to the public by developing a core group of selectors in 2002. • Increase current Training Plan by including annual collection development and maintenance training sessions in 2003. Technology • Assess and enhance existing and potential software components to improve communication and personalized service, including Web-based information. • Provide training and information for the public related to various uses of technology, including hardware and software. • Dedicate select public computer stations for express electronic mail use. • Redesign and create effective management of the Web page. • Review and potentially upgrade the Integrated Library System (on-line catalog) in 2003. • Offer word processing service at all locations for patrons in 2003. • Convert Main Library materials to the radio-frequency controlled Checkpoint System (security/inventory) by January 2003. • Begin operation of a Technology Center in the new Main Library, including Gates Foundation computers, in 2003. • Expand wireless technology within the City Library System to include all branches by 2004. • Review Centrex Prime phone system in 2004. 111/ • Install Checkpoint System (security/inventory) and convert materials in all branches by 2005. -3- Human Resources • Emphasize the hiring and retention of a well qualified and diverse staff. S • Maintain competitive salaries and benefits by conducting a formal compensation survey in 2003. • Provide ongoing training for all staff, with an emphasis on technology training, through the City Library's comprehensive Training Plan. • Adjust staffing levels annually to reflect strategic plan priorities. • Increase hours in support of programming to manage and coordinate systemwide programs and Library Square events. • Expand the number of volunteers, along with their roles, in anticipation of the move into a new Main Library. • Manage staff allocations to create systemwide collection development positions for improved selection. • Provide adequate staffing for weekend hours at Library Square. Facilities and Capital Planning • • Open new Main Library as the centerpiece of Library Square in January 2003. • Work in concert with City and other interested parties to complete development of Library Square block. • Develop and sustain creative and complementary partnerships with future tenants of existing Main Library. • Acquire City Council approval of 15-Year Capital Improvements Plan during 2002-2003. • Conduct a post occupancy survey of the new Main Library by January 2004. • Ensure commitment to ongoing capital improvement funding and plan. • Develop an ongoing technology upgrade fund in the capital budget to assure the City Library's ability to meet the growing demands of upgrading hardware and software. -4- • Plan a new branch in the southwest area of Salt Lake City by 2005. III. IMPROVED MANAGEMENT Improve and Enhance Communication • Improve delivery of information to staff concerning library directions, decisions, and activities. • Improve the Performance Plan system by providing training to managers on coaching and evaluation, and by including these items as a systemwide standard. • Enhance coordination within library departments so that access to materials and services for teens are improved. Promote a Learning Environment for Staff • Build reciprocal relationships to broaden learning opportunities, both within and outside the City Library System, by encouraging and promoting staff exchanges. • • Develop a cohesive method for staff to report on information and skills gained at conferences and training sessions. Strengthen Our Organizational Structure • Regularly evaluate and modify our management structure to maintain its responsiveness to the dynamic and changing needs of our organization. • Implement staffing structure for new Main Library in 2002. Evaluate effectiveness of staffing structure at new Main Library by December 2003. • Review the committee process and make needed improvements. Develop an evaluation model for committees in 2003. Expand Fiscal Planning • Implement a multifaceted, long-term fund raising plan which focuses on individuals, corporations, and foundations. • Pursue grants and private funding to enhance technological resources. SO -5- • Raise $3 million to support a program endowment fund, operating expenses, and program sponsorship by 2005. • Prepare and submit a $250,000 NEH Challenge Grant Proposal by 2003. • -6- • • • 0 5 2CO3 SALT LAKE CITY DEI'ARTM ENT OF + + �Ilq)ORTS FAA R1e • Federal Aviation Act of 1958 — "Secretary of Transportation is authorized to prescribe air traffic rules and regulations governing the flight of aircraft. . . and for the efficient use of navigable airspace." SALT LAKE CITY DEPARTMENT OF "1"AIIT9RTS Proposed Northern Utah Airspace Initiative • No Action • Alternative A - four corner post with single west downwind • Alternative B - four corner post with unrestricted dual east and west downwinds • Alternative C - four corner post with unrestricted west and restricted use east downwind SALT LAKE CITY DEPARTMENT OF AIR 9RTS FAA Stated Objectives • Avoid degradation of safety • Improve efficiency • Meet future traffic demands • • • SALT LAKE CITY DEPARTMENT OF 04•14 PORTS FAA EIS Schedule 2003 2004 A I MI JI JI AI _SI_ 01 NI D JI FI MI AI MI Jl JI AI SlOI NID JI March 18, 2003 May 16, 2003 ®Scoping Prepare Draft EIS Spring 2004 Spring 2004 60 Day Fall 2004 Prepare Final EIS Public Comment 30 Day Hold Mi Record of Decision Winter 2004/2005 SALT LAKE CITY DEPARTMENT OF AIRPORTS East Downwind Arrival Corridor NATIONAL" 9, Brigham City ' h,rty Plato C.:. • • West Promontory Haven• O 6 t k /Point Hooper �r� • Landing South• Ogde to:< Sunset Clearfield 120 to 150 '�' #• e ��ip •? t ' 'r.�ytsv SALT LAKE CITY ships k * r nt' ' j,,.,: L.uuting North •West ValleyMu '' - •oa • ='` 130to150 ; City • • lta City F antsvhlc• West Jordan •Id Wd,JICt1 o South Jordan' "Sa min sn Tooele Riverton• 1. Midway• OHeber Cit s Blulfdale• ,f 4•H`''• 'Stockton =c tEst Lehi• American • ForkNiT�F•.,.c>„ • Rush Cedar Fort valley Orem• _. •Fair!icld - OProvo • UIN •Springville SALT LAKE CITY DEPARTMENT OF 4; AIR9RTS .. Existing Flight Tracks _. EXISTING,WEST DOWNWIN -D -,.. ""r aj • r :-- _ — =f, sale r-- •. _ aea..00a e 5_ 1-_--.- ' SALT CITY --'" 18 -�I^J! f�E 'n i ls �II .0 r DAVti-C6/M7Y { 11111 ., J� �r \ I� !i I]OOEa PROPOSED __ EAST DOWNWIND • 1 ( L _ Jet Approaches September 8-102000 EXISTING GHT TRACKS ° '" ' Jet Departures Total Tracks:3642 h2 sc4LE.1'-I6.000' SALT LAKE CITY DEPARTMENT OF AIITORTS Proposed Flight Tracks .WEST f�t^ ' - - • JORDAN WEST VALLEY _ JORDAN, , � �.- fO MILE-- aao West. �� ,.�-fi MILE-_ ,- I sis7 ,, �((`�� CITY -� MUf Y SAL • ` - I'. IWO East , _ f co 1 Dui I1)1�` ' '' '. f'.cr'' ,/r r:/:',.-ki\:,n, :,'`,':---' t---.-'- ', ,---;: ---, _ c '14000 -_.- -_ --- 14000 13 000 MSL 12000 _ __ 12000 11 OCO MSC 10000 10000 8000 HO 8,860' - - - - 4200 4200A :Ir • SALT LAKE CITY DEPARTMENT OF op*loi AIIQQRTS 45° Four Corner Post Plan Overview —aa• le f gan j� •••• •• ••• • SALT LAKE CITY • - r • • - • r • west v.,uy'� ra„rr,y-• - ;'-, • ...r a R,. . '�. ewe, en, •/RSA Ore r r. TyajF +' • m Free SALT LAKE CITY DEPARTMENT OF �I PJORTS Department of Airports Response • Hired consultants • Preparing written comments • • • SALT LAKE CITY DEPARTMENT OF AIRPORTS Written Comments: • More data is needed on activity forecasts and capacity assumptions • FAA forecasts may be overly aggressive — 30% growth over 7-10 years or 3.75% annually — Historic growth rate is only 1 .24% annually — FAA forecast conflicts with the most recent Terminal Area Forecast • Airspace capacity may not be needed now • Demand can be accommodated w/o compromising safety — Off peak operations • • • • SALT LAKE CITY DEPARTMENT OF VIA AIRPORTS Written Comments: (con't) • Improving technology may be able to increase capacity w/o airspace changes — GPS and Flight Management Systems • Other alternatives need to be evaluated — Far-east downwind, stacked west downwind • Four-corner post may be acceptable — Separate issues • East downwind may be objectionable — Larger population exposed to single event noise — Should be the last alternative considered • • • SALT LAKE CITY DEPARTMENT OF ► Ilq3O,RTS FAA Contacts Website: http://www2.faa.gov/ats/nar/nw mt/nw mt salt.htm Phone: 801 -325-9626 Address: Northern Utah Airspace Initiative P.O. Box 22867 AMF Salt Lake City, UT 84122 • MEMORANDUM DATE: May 6, 2003 TO: Council Members FROM: Michael Sears RE: Amended Resolution and Loan Agreement with KUTV The Council discussed the proposed loan to KUTV Channel 2 during the January 14, 2003 work session and the Redevelopment Agency of Salt Lake (RDA) Board of Directors' January meeting. Since the briefings in January the Administration has been working with KUTV to finalize the details of the $1.2 million loan. Attached is a revised resolution and contract that contains all of the changes to the version approved by the Council. The Council may wish to note the two changes that have occurred since Council Members were first introduced to the idea of KUTV relocating to the Wells Fargo Building and adopted a resolution authorizing a loan to KUTV. I • The agreement will be between Salt Lake City Corporation and KUTV Holdings, Inc. The agreement will be backed by a Corporate Guarantee from CBS Televisions Stations, Inc. The original resolution included Viacom. • The agreement has been revised to clarify the in-kind repayment portion of the loan. The transmittal from the Administration summarizes the terms of the in-kind portion of the debt and clarifies the changes that have been made since the original resolution was adopted. The Administration is requesting approval from the Council so that the loan agreement can be executed and KUTV can move into the City. OPTIONS Council Members may wish to adopt the proposed resolution authorizing the Mayor to sign the KUTV loan agreement. cc: Cindy Gust-Jenson,Gary Mumford,Dave Oka,Alison Weyher,Russell Weeks and Janice Jardine MAY0 6 2003 gl�,�� 9 �///'''i���� gyp ���}, ALISON WEYHER _�. . . ;...,Q i!all 0 S . PO ,! IONA • _. •. +,., _. � ___ ROSS C. "ROCKY" ANDER5DN DIRECTOR COMMUNITYi ➢j]? ELOPMENT MAYOR (":1th. TO: Rocky Fluhart Date: May 5, 2003 FROM: Alison Weyher , • RE: Amended Resolution and Loan Agreement between Salt Lake City Corporation and KUTV STAFF CONTACT: Alison Weyher 535-7226 In January, Staff briefed the City Council on the proposed 5I?mm loan from the Economic Development Revolving Loan Fund to KUTV. As the Administration and KUTV have worked through the contract, several changes to the Resolution approved by the Council have occurred. Attached is a revised Resolution and the contract, both of which have been approved by the city Attorney's office and the Viacom attorneys. ID Significant changes to the Resolution are as follows: 1. The Agreement will be between Salt Lake City Corporation and KUTV Holdings, and backed by a Corporate Guarantee from CBS Television Stations, Inc. (See Section 3.03 of the Loan Agreement). The original resolution included Viacom however, CBS Television Stations, Inc. is the owner of the television station subsidiary of Viacom, and is thus the appropriate legal entity to enter into the contract. 2. Considerable clarification to the in-kind repayment section of the loan has been added. Specifically, those changes include: a. There shall be no maximum amount of the in-king portion of the debt that can be repaid annually. This change will allow Salt Lake City to maximize the amount of in kind service obtained as we focus on the Downtown area and generate maximum dollar value, rather than depreciation over the fifteen year period of the contract. b. The in-kind commitment will be reviewed every six months, rather than annually. This allows both Salt Lake City Corp. and KUTV to present more timely campaigns responding to market issues. c. In the event that Salt Lake City Corp. and KUTV cannot reach agreement on in-kind services for two consecutive six month periods, a third party mediator shall be employed for non-binding mediation. If no agreement is reached, the City's proposal shall be given preference. or KUTV will make a cash payment for the year. Cash payments will be no more than S33,333.34 annually. III 451 SOUTH STATE STREET, ROOM 404, SALT LAKE CITY, UTAH 641 1 1 TELEPHONE: 801-53S-6230 FAX: 601-535-6005 aeevceo r�Pea RESOLUTION NO. OF 2003 AMENDING RESOLUTION NO. 4 OF 2003 • AUTHORT7ING A LOAN FROM SALT LAKE CITY TO KUTV HOLDINGS, INC. FOR THE RELOCATION OF KUTV'S TELEVISION STUDIO TO DOWNTOWN'S MAIN STREET WHEREAS, Salt Lake City has funds available to stimulate business development and expansion, encourage private investment, and promote economic • development; and WHEREAS, the Salt Lake City Redevelopment Agency Board of Directors has adopted Resolution No. 550.04 approving terms of a loan to Tower Group Holdings, L.L.C. of$2.8 million for building renovation: and WHEREAS, the City Council desires to amend the terms of the loan it previously approved to VIACOM Inc./KUTV; THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah, that Resolution No. 4 of 2003 be, and is hereby, amended to read as follows: 1. The City Council does hereby approve a loan in the amount of$1.2 million • from Salt Lake City to KUTV Holdings, Inc. to purchase equipment needed for the relocation of KUTV to 299 South Main Street, Salt Lake City, Utah. 2. The loan shall be at zero percent interest for fifteen years. $500,000.00 of the loan shall be repaid with annual cash payments of$33,333.34. $700,000.00 of the loan shall be repaid in the form of in-kind services to provide promotional campaigns for the downtown area of Salt Lake City. The in-kind payments shall be made until the $700,000.00 in-kind portion of the debt is repaid. There shall be no maximum amount of the in-kind portion of the debt that may be repaid annually. A schedule establishing the minimum amount and the nature of in-kind services to be repaid shall be deteiiiiined every six months between the City and KUTV, with annual review and comment by the City Council, so long as an in-kind balance remains due. Because it is in both parties' best interests that the in-kind portion be repaid quickly, every effort shall be made to accommodate each party's needs. In the event that proposals are made by either party, but no agreement is reached for two consecutive six month periods, the matter shall be submitted to a third party mediator for non- binding mediation. The costs of retaining the mediator shall be equally borne by the parties. If no agreement is reached after such non-binding mediation, the City's proposal shall be given preference, provided that in no event shall KUTV be required, against its wishes, to provide more than the cash equivalent of$33,333.34 in-kind per year. • • The cash equivalent of any unpaid balance of the in-kind portion of the loan remaining as of the expiration of the said fifteen year teen shall be due and payable upon default or at the expiration of the said fifteen year term, whichever shall first occur, in addition to any outstanding balance due on the $500,000.00 cash portion of the loan. KUTV's in-kind services shall not include any charge for production costs, except for direct out-of-pocket costs, and KUTV shall agree to run downtown promotional spots at two-for-the- price-of-one on the C card rate, the station's current lowest rate, or on the station's then lowest rate when the spots are run. So long as the annual minimum in kind services are paid by KUTV as provided herein, said services shall be made on a time available basis such that the City shall not have priority over KUTV's regular customers. Should the KUTV Television Studio move out of the building at 299 South Main Street or should CBS Television Stations, Inc. cease operating a television station in that building, the balance of the loan, including the balance of the cash owed and the cash equivalent of the balance of in-kind services still owed, shall be immediately due and payable. All payments shall be applied first to late fees, then to service fees, then to interest, if applicable, and then to principal. The loan shall be secured by a first lien on the equipment purchased with the loan proceeds and by a corporate guaranty of CBS Television Stations, Inc. • 3. Ross C. Anderson, Mayor of Salt Lake City, Utah is hereby authorized to execute the requisite loan documents on behalf of Salt Lake City Corporation and to act in accordance with their terms. Passed by the City Council of Salt Lake City, Utah, this day of , 2003. SALT LAKE CITY COUNCIL By: CHAIR Attest: Chief Deputy City Recorder APPROVED AS TO FORM Salt Lake City Attorneys Office Date 1 • G\Resoluu\City Council resolution re KUTV loan-5-1-03 clean 2 • LOAN AGREEMENT THIS AGREEMENT is dated , 2003, by and between SALT LAKE CITY CORPORATION, hereinafter called the "City," and KUTV HOLDINGS, Inc. a Delaware corporation, hereinafter called the "Borrower." WHEREAS, the Borrower has applied to the City for a loan to purchase equipment needed for relocation of Borrower to 299 South Main Street, Salt Lake City, Utah; and WHEREAS, the City has funds available to stimulate business development and expansion, encourage private investment and promote economic development, it is willing to make a loan to the Borrower on the terms and conditions hereinafter set forth; NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows: ARTICLE I THE LOAN SECTION 1.01: THE LOAN, NOTE AND RATE • Subject to the terms and conditions of this Agreement, the City hereby agrees to lend to Borrower, and the Borrower hereby agrees to borrow from the City and repay to City or its assigns, ONE MILLION, TWO HUNDRED THOUSAND AND NO/100 DOLLARS ($1,200,000.00) (the "Loan"). The obligation of the Borrower to repay the Loan shall be evidenced by the Promissory Note (the "Note") of the Borrower in a form satisfactory to the City, dated on the date on which the Loan is made (the "Closing Date"), payable to the order of the City as set forth in Section 1.02 below. SECTION 1.02: THE TERM AND REPAYMENT The loan shall be at zero percent interest for fifteen years. $500,000.00 of the loan shall be repaid with annual cash payments of$33,333.34. $700,000.00 of the loan shall be repaid in the form of in-kind services to provide promotional campaigns for the downtown area of Salt Lake City. The in-kind payments shall be made until the $700,000.00 in-kind portion of the debt is repaid. There shall be no maximum amount of the in-kind portion of the debt that may be repaid annually. A schedule establishing the minimum amount and the nature of In-kind services to be repaid shall be determined every six months between the City and the Borrower, with annual review and comment by the City Council, so long as an in-kind balance remains due. Because it is in both parties' best interests that the in-kind portion be repaid quickly, every effort shall be • made to accommodate each party's needs. In the event that proposals are made by • either party, but no agreement is reached for two consecutive six month periods, the matter shall be submitted to a third party mediator for non-binding mediation. The costs of retaining the mediator shall be equally borne by the parties. If no agreement is reached after such non-binding mediation, the City's proposal shall be given preference, provided that in no event shall the Borrower be required, against its wishes, to provide more than the cash equivalent of$33,333.34 in-kind per year. The cash equivalent of any unpaid balance of the in-kind portion of the loan remaining as of the expiration of the said fifteen year term shall be due and payable upon default or at the expiration of the said fifteen year term, whichever shall first occur, in addition to any outstanding balance due on the $500,000.00 cash portion of the loan. The Borrower's in-kind services shall not include any charge for production costs, except for direct out-of-pocket costs, and the Borrower shall agree to run downtown promotional spots at two-for-the-price-of-one on the C card rate, the station's current lowest rate, or on the station's then lowest rate when the spots are run. So long as the annual minimum in kind services are paid by Borrower as provided herein, said services shall be made on a time available basis such that the City shall not have priority over the Borrower's regular customers. Should the KUTV Television Studio move out of the building at 299 South Main Street or should CBS Television Stations, Inc. cease operating a television station in • that building, the balance of the loan, including the balance of the cash owed and the cash equivalent of the balance of in-kind services still owed, shall be immediately due and payable. All payments shall be applied first to late fees, then to service fees, then to interest, if applicable, and then to principal. All payments shall be made promptly to the City at its address at Room #404, City & County Building, 451 South State Street, Salt Lake City, Utah 84111, or at such other address as it may designate in writing. SECTION 1.03: CORPORATE GUARANTY The City shall have received a duly executed Corporate Guaranty Agreement from CBS Television Stations, Inc. SECTION 1.03.1: SECURITY In addition to the guarantee referred to in Section 1.03 above, the loan shall be secured by a first lien on all the equipment purchased with the proceeds of the loan (the "Equipment."), as evidenced by a Security Agreement (the "Security Agreement") and a UCC Financing Statement to be filed with the Utah Department of Commerce (the "UCC Financing Statement") copies of which are attached as Exhibits "B" and "C" hereto The Equipment securing the loan is more particularly described in said Exhibits "B" and "C." SECTION 1.04: PURPOSE OF LOAN The purpose of the Loan is to purchase equipment needed for a relocation of Borrower to 299 South Main Street, Salt Lake City, Utah. The Borrower agrees that it will apply funds received by it under this Agreement only in accordance with the 2 • purpose stated above. The Borrower further agrees that no application of any funds received from the City hereunder shall be made in violation of federal or state law or Salt Lake City ordinances. SECTION 1.05: DULY ORGANIZED The Borrower certifies that it is a Delaware corporation in good standing. SECTION 1.06: TERMS, COVENANTS, AND CONDITIONS Borrower agrees to abide by and be bound by the attached Terms, Covenants and Conditions, marked as Exhibit "A" and incorporated herein by this reference. Borrower acknowledges that he has received a copy of such Terms, Covenants and Conditions, has read the same, and accepts them as a legal and binding part of this Loan Agreement. SECTION 1.07: FEES Not applicable. IN WITNESS WHEREOF, the parties hereto have each caused this Loan • Agreement to be duly executed as of the day and year first written above. SALT LAKE CITY CORPORATION By: ROSS C. ANDERSON MAYOR ATTEST: CHIEF DEPUTY CITY RECORDER • 3 • KUTV HOLDINGS, INC., a Delaware Corporation By: Its: STATE OF ) : ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2003, by the of KUTV Holdings, Inc., a Delaware corporation. II NOTARY PUBLIC Residing at My Commission Expires: • 4 • ACKNOWLEDGEMENT OF RECEIPT OF COPY OF TERMS, COVENANTS, AND CONDITIONS TO LOAN AGREEMENT COMES NOW the Undersigned, hereinafter referred to as the "Borrower," and acknowledges receipt of a copy of Exhibit "A" to Loan Agreement, Terms, Covenants and Conditions, acknowledge that it has read the same, and acknowledges its agreement to accept them as a legal and binding part of the Loan Agreement. DATED this day of , 2003. KUTV HOLDINGS, INC., a Delaware Corporation By: Its: S G:\Agreements 03\KUTV\KUTVLoanAgrmt-LVS 5-1-03 clean • 5 • SALT LAKE CITY CORPORATION EXHIBIT "A" TO LOAN AGREEMENT TERMS, COVENANTS, AND CONDITIONS It is expressly agreed by the parties that this Exhibit is incorporated in and a part of that certain Loan Agreement, and that all of the terms, conditions and provisions set forth below are to apply to that Agreement and are made a part of that Agreement as though they were expressly rewritten, incorporated and included therein. ARTICLE II REPRESENTATIONS AND WARRANTIES The Borrower Represents and Covenants the Following: SECTION 2.01: DULY AUTHORIZED • The making and performance by the Borrower of this Agreement, and the execution and delivery of the Note, the Corporate Guaranty Agreement, the Security Agreement and the UCC Financing Statement have been duly authorized by all necessary action, including but not limited to corporate or individual action, and will not violate any law, rule, regulation, order, writ, judgment, decree, determination or award presently in effect having applicability to the Borrower or any provision of the Borrower's Certificate of Incorporation or Bylaws or result in a breach of or constitute a default under any indenture or bank loan or credit agreement. SECTION 2.02: LEGALLY BINDING INSTRUMENTS When this Agreement is executed by the Borrower and the City, and when the Note is executed and delivered by the Borrower for value, each such instrument shall constitute the legal, valid, and binding obligation of the Borrower in accordance with its terms. The Security Agreement and the UCC Financing Statement shall constitute legal, valid and binding liens on the Equipment, and the Equipment shall be free and clear of all prior liens and encumbrances except as of record or disclosed in writing to Salt Lake City. SECTION 2.03: NO LEGAL SUITS There are no legal actions, suits, or proceedings pending or, to the knowledge of • the Borrower, threatened against the Borrower before any court or administrative S agency, which, if determined adversely to the Borrower, would have a material adverse effect on the financial condition or business of the Borrower. SECTION 2.04: NO LEGAL AUTHORIZATION NEEDED No authorization, consent or approval, or any formal exemption of any Governmental body or regulatory authorities or mortgagee, creditor is or was necessary to the valid execution and delivery by the Borrower of this Agreement, the Note, or any Security Agreement or Financing Statement. SECTION 2.05: NOT IN DEFAULT The Borrower is not in default of any obligation, covenant, or condition contained in any bond, debenture, note or other evidence of indebtedness or any mortgage or collateral instrument securing the same. SECTION 2.06: TAXES ARE PAID The Borrower has filed all tax returns, or represents that all tax returns have been filed, which are required and payment has been made or provision has been made for the payment of all taxes which have or may become due pursuant to said returns or pursuant to any assessments levied against the Borrower or its personal or real • property by any taxing agency, federal, state or local. No tax liability has been asserted by the Internal Revenue Service or other taxing agency, federal, state or local for taxes materially in excess of those already provided for the Borrower and the Borrower knows of no basis for any such deficiency assessment. SECTION 2.07: NO ADVERSE CHANGE The Borrower certifies that there has been no material adverse change since the date of loan application in the financial condition, operation, or business prospects of the Borrower. ARTICLE III CONDITIONS OF LENDING The obligation of the City to make the Loan shall be subject to the fulfillment at the time of closing of each of the following conditions: SECTION 3.01: EXECUTION OF AUTHORIZATION Not applicable. • SECTION 3.02: EXECUTION AND DELIVERY OF NOTE AND LOAN AGREEMENT The Borrower shall have executed and delivered to the City this Loan Agreement and the Note in a form satisfactory to the City and its counsel. SECTION 3.03: EXECUTION AND DELIVERY OF GUARANTEES AND SECURITY FOR LOAN The Borrower shall have executed and delivered to the City a Corporate Guaranty from CBS Television Stations, Inc., guaranteeing payment of the Note by the Borrower. The Borrower shall have executed and delivered to the City all Security Documents necessary to give the City a first lien on all equipment purchased with the proceeds of the Loan. SECTION 3.04: EXECUTION AND CERTIFICATION OF RESOLUTION OF BOARD OF DIRECTORS OR CERTIFICATE OF PARTNERSHIP The Borrower shall have executed and delivered to the City a duly certified copy of a Resolution of the Board of Directors authorizing the execution and delivery by the Borrower of this Agreement, the Note, a corporate guaranty, and all Security • Documents. SECTION 3.05: CORPORATE OR PARTNERSHIP PAPERS The Borrower shall have delivered to the City if requested, copies of the Borrower's Certificate of Incorporation, Articles of Incorporation, Bylaws, and Certificate of Good Standing or Partnership Agreement or Assumed Name filing, if appropriate. SECTION 3.06: TITLE INSURANCE Not applicable. SECTION 3.06.1: LIABILITY, PROPERTY, AND WORKERS COMPENSATION INSURANCE The Borrower agrees to obtain and maintain during the entire existence of this Agreement a comprehensive general liability policy of insurance with minimum coverage amounts as required by City from time to time, but for the present, a minimum of$1 million per occurrence and $2 million aggregate, with the Borrower as the named insured. Said insurance shall provide for a minimum of thirty (30) days prior written notice of cancellation to the City, but cancellation shall not relieve Borrower of this obligation to provide insurance. On all such coverage, City shall be named as an additional insured. • 3 • Borrower shall maintain fire and casualty insurance upon any property, real or personal, owned or used by the Borrower in its operations in an amount at least equal to all indebtedness against the property and shall maintain business interruption insurance insuring the business against loss. The City shall be named as a "loss payee" on all such insurance. Borrower shall obtain and maintain during the entire term of this agreement workers compensation coverage sufficient to cover all of Borrower's employees pursuant to Utah State statutes. Borrower shall provide to the City a certificate of insurance verifying that Borrower has complied with this requirement. Borrower has furnished to City appropriate certificates of insurance verifying such present and continued coverage as required hereinabove, copies of which are attached hereto. Borrower also agrees to provide additional certificates as changes occur in policies or coverage during the course of this Agreement. All policies of insurance provided shall be issued by insurance companies qualified to do business in the state of Utah and shall be reasonably satisfactory to the City. SECTION 3.06.2: LIFE INSURANCE Not applicable. • SECTION 3.07: GOVERNMENTAL APPROVAL The Borrower shall have secured all necessary approvals or consents, if required, of Governmental bodies having jurisdiction with respect to its business. SECTION 3.08: APPROVAL OF OTHERS The Borrower shall have secured all necessary approvals or consents required with respect to this transaction by any mortgagor, creditor, or other party having any financial interest in the Borrower. SECTION 3.09: OPINION OF COUNSEL The City shall have received the written Opinion of Counsel to the Borrower that the Representations and Warranties are true and accurate on and as of the closing date and the conditions of the Loan have been duly satisfied as of the closing date. SECTION 3.10: SUBORDINATION OF OFFICER DEBT Not applicable. I 4 • ARTICLE IV AFFIRMATIVE COVENANTS OF THE BORROWER The Borrower agrees to comply with the following covenants from the date hereof until the City has been fully repaid, with all applicable interest, unless the City or its Assigns shall otherwise consent in writing: SECTION 4.01: PAYMENT OF THE LOAN The Borrower agrees to pay punctually the principal and all applicable interest on the Note according to its terms and conditions and to pay punctually any other amounts that may become due and payable to the City under or pursuant to the terms of this Agreement or Note. In the event City or its Agent or assignee accepts a late payment after the tenth (10th) day following the date on which such payment is due, the Borrower agrees to pay a late payment charge equal to five percent of the late amount or ONE HUNDRED and NO/100 DOLLARS ($100.00), whichever is greater, as compensation for additional collection efforts, in addition to interest on all sums in default at the rate of eighteen III percent (18%) per annum, compounded monthly, before and after judgment, until paid in full. Payment of the outstanding balance of the indebtedness, in whole or in part, may be made prior to the maturity date of the Note, timing to be arranged with the City. SECTION 4.02: PAYMENT OF OTHER INDEBTEDNESS The Borrower agrees to pay punctually the principal and interest due on any other indebtedness now or hereafter at any time owing by the Borrower to the City or any other creditor. SECTION 4.03: PAY ALL TAXES The Borrower agrees to duly pay and discharge all taxes, assessments, and governmental charges upon it or against its properties prior to the date on which the penalties attach thereto, except that the Borrower shall not be required to pay any such tax, assessment, or governmental charge which is being contested by it in good faith and by appropriate proceedings. SECTION 4.04: MAINTAIN LEGAL EXISTENCE The Borrower agrees to maintain its existence, rights, privilege, and franchises 0 within the state of Utah, and remain qualified to do business in each jurisdiction in which its present or future operations or its ownership of property require such qualification. 5 411/ SECTION 4.05: PROVIDE FINANCIAL INFORMATION The Borrower agrees to provide to the City, within 30 days of the date of filing, a conforming copy of the annual 10(K) reporting form filed by or on behalf of the Borrower with the Securities and Exchange Commission. [Please send a copy of a typical form for our review]The Borrower further agrees to provide written notice to the City of any public hearing or meeting before any administrative or other public agency, which may, in any manner, affect the collateral, personal property, or real estate securing the Loan. SECTION 4.06: RIGHT TO INSPECTION The Borrower agrees to grant the City, until the Note has been fully repaid the right at reasonable hours and upon prior notice to inspect the Equipment used to secure the Loan but no more than twice per year; and the Borrower further agrees to provide the City free access to the Borrower's premises for the purpose of such inspection to determine the condition of the Equipment. SECTION 4.07: NULL AND VOID COVENANTS The Borrower agrees that in the event any provision of this Loan Agreement or any other instrument executed at closing, or the application thereof to any person or circumstances, shall be declared null and void, invalid, or held for any reason to be • unenforceable by a Court of competent jurisdiction, the remainder of such agreement shall nevertheless remain in full force and effect, and to this end, the provisions of all covenants, conditions, and agreements described herein are deemed separate. SECTION 4.08: EXPENSES AND CLOSING COSTS Not applicable. SECTION 4.09: NOTICE OF DEFAULT The Borrower agrees to give written notice to the City of any event, within ten (10) days of the event, which constitutes an Event of Default under this Loan Agreement as described in Article VI herein, or that would, with notice or lapse of time or both, constitute an Event of Default under this Loan Agreement. SECTION 4.10: INDEMNIFICATION Borrower agrees and covenants to hold the City harmless, indemnify and defend it and its officers and agents of and from any and all claims of loss, damages or injury sustained by any person or damage to property and all expenses, including reasonable attorney's fees, incurred or thereby arising from any event of default under Article VI herein, by the Borrower principals, staff, agents, contractors or employees. Nothing • herein shall be construed to require the Borrower to indemnify the City to the extent of the City's negligence or willful misconduct. SECTION 4.11: EXPENSES OF COLLECTION OR ENFORCEMENT If required by the City, the Borrower agrees to pay all fees and charges incurred with respect to the Loan, or its making, or transfer to the City in any way connected therewith, including, but not limited to, the fees and out-of-pocket expenses of local counsel employed by the City, title insurance and survey costs, recording and filing fees, mortgage taxes, documentary stamp, and any other assessments, fees and expenses payable in connection with this transaction and with the enforcement of this Loan Agreement and Note. In the event the processing of the Loan is terminated, for whatever reason, or the Loan is not funded, for whatever reason, Borrower agrees to pay all fees of legal counsel employed by City to assist Borrower at the rate of $100.00 per hour, to a maximum of$3,000.00, plus out-of-pocket expenses, and the fees of the representative of City at the rate of $150.00; per hour, to a maximum of$3,000.00, plus out-of-pocket expenses, within thirty (30) days after billing. Interest shall accrue on unpaid fees at the rate of eighteen percent (18%) per annum compounded monthly. SECTION 4.12: REPRESENTATION REGARDING ETHICAL STANDARDS FOR . CITY OFFICERS AND EMPLOYEES AND FORMER CITY OFFICERS AND EMPLOYEES Borrower represents that it has not: (1) provided an illegal gift or payoff to a city officer or employee or former city officer or employee, or his or her relative or business entity; (2) retained any person to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, other than bona fide employees or bona fide commercial selling agencies for the purpose of securing business; (3) knowingly breached any of the ethical standards set forth in the city's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code; or (4) knowingly influenced, and hereby promises that it will not knowingly influence, a city officer or employee or former city officer or employee to breach any of the ethical standards set forth in the city's conflict of interest ordinance, Chapter 2.44, Salt Lake City Code. ARTICLE V NEGATIVE COVENANTS OF THE BORROWER The Borrower covenants and agrees that, from the date hereof until payment in full of the Note, unless the City or its Assigns shall otherwise consent in writing, it will not enter into any agreement or other commitment the performance of which would constitute a breach of any of the covenants contained in this Loan Agreement, including, but not limited to, the following covenants: 7 • SECTION 5.01: ENCUMBER THE EQUIPMENT The Borrower shall neither create nor suffer to exist any mortgage, pledge, lien, charge, or encumbrance, including liens arising from judgments, on the Equipment. SECTION 5.02: SELL THE EQUIPMENT The Borrower will not sell, convey, or suffer to be conveyed, lease, assign, transfer, or otherwise dispose of the Equipment, unless approved in advance in writing by the City. Borrower may replace the Equipment in the event it is damaged or is being upgraded without the written consent of the City, provided Borrower gives the City written notification within 30 days of such replacement or upgrading. It is agreed that City shall retain the same lien on all replacement or upgraded Equipment as the City previously held on the Equipment so replaced or upgraded. SECTION 5.03: CHANGE OWNERSHIP The principals of the Borrower will not permit, without the written permission of the City, any material change in the ownership structure, control, or operation of the Borrower that will have a materially adverse affect upon the financial condition or operation or the business prospects of the Borrower or upon the ability of the Borrower to fulfill its obligations under this Loan Agreement, including, but not limited to i) merger • into or consolidation with any other person, firm or corporation; ii) significant issuance of any shares of its capital stock having ordinary voting power for the election of members of the Board of Directors or other governing body of the Borrower; iii) changing the nature of its business as carried or at the date hereof; iv) substantial distribution, liquidation or other disposal of the Borrower's assets to the owners, stockholders, members, or partners; v) any change in the officers of the Borrower from the persons in such offices at the time of closing. ARTICLE VI EVENTS OF DEFAULT If any of the following events of default referred to in the subsections listed below shall occur and be continuing at the time of such demand, the entire unpaid principal balance of the Note, and the interest then accrued thereon, shall become and be immediately due and payable within ten (10) business days after written demand of the City or its assigns, without any other notice or demand of any kind or any presentment or protest. The Loan shall be in default whether such default is voluntary or involuntary, with or without limitation, it occurred or was brought about by operation of law or pursuant to or in compliance with any judgment, decree or order of any Court or any order, rules or regulation of any administrative governmental body, provided, however, that such sum shall not be then payable if Borrower's payments have been waived in IP • writing or the time for making the Borrower's payments has been extended in writing by Salt Lake City Corporation. SECTION 6.01: NON-PAYMENT OF LOAN If the Borrower shall fail to make payment when due of any installment of principal on the Note, or if the Borrower shall fail to provide the minimum in-kind services required under this Agreement in any year of the term of the loan prior to the entire in-kind portion of the loan being repaid, and if the default shall remain unremedied for ten (10) days. SECTION 6.02: NON-PAYMENT OF OTHER INDEBTEDNESS If default shall be made in the payment when due of any installment of principal or of interest accrued on any of the Borrower's other indebtedness secured by any or all of the Equipment and if such default shall remain unremedied for ten (10) days. SECTION 6.03: INCORRECT REPRESENTATION OR WARRANTY Any representation or warranty contained in, or made in connection with the • execution and delivery of this Loan Agreement, or in any certificate furnished pursuant hereto, shall prove to have been incorrect in any material respect when made. SECTION 6.04: DEFAULT IN COVENANTS The Borrower shall default in the performance of any other term, covenant, or agreement contained in this Loan Agreement, and such default shall continue unremedied for thirty (30) days after either: i) it becomes known to an executive officer of the Borrower; or ii) written notice thereof shall have been given to the Borrower by the City. SECTION 6.05: VOLUNTARY INSOLVENCY If the Borrower shall become insolvent or shall cease to pay its debts as they mature or shall voluntarily file a petition seeking reorganization of, or the appointment of a receiver, trustee, or liquidation for it or a substantial portion of its assets or to effect a plan or other arrangement with creditors, or shall be adjudicated bankrupt, or shall make a voluntary assignment for the benefit of creditors. SECTION 6.06: INVOLUNTARY INSOLVENCY If an involuntary petition shall be filed against the Borrower under any bankruptcy, insolvency, or similar law or seeking the re-organization of or the • appointment of any receiver, trustee, or liquidator for the Borrower, or of a substantial party of the property of the Borrower, or a writ or warrant of attachment or similar 9 • process shall be issued against a substantial part of the property of the Borrower, and such petition shall not be dismissed, or such writ or warrant of attachment or similar process shall not be released or bonded within sixty (60) days after filing or levy. SECTION 6.07: JUDGMENTS If any final judgment for the payment of money that is not fully covered by liability insurance and is in excess of$10,000 shall be rendered against the Borrower, and within thirty (30) days, shall not be discharged, or an appeal therefrom taken and execution thereon effectively stayed pending such appeal, and, if such judgment be affirmed on such appeal, the same shall not be discharged within thirty (30) days. ARTICLE VII MISCELLANEOUS SECTION 7.01: WAIVER OF NOTICE No failure or delay on the part of the City in exercising any right, power, or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power, or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. No modification • or waiver of any provision of this Loan Agreement or of the Note, nor any consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. No notice to or demand on the Borrower in any case shall entitle the Borrower to any other or further notice or demand in similar or other circumstances. SECTION 7.02: AMENDMENTS The Borrower and the City or its Assigns, with the concurrence of the City, hereby expressly reserve all rights to amend any provisions of this Agreement, to consent to or waive any departure from the provisions of this Loan Agreement, to amend or consent to or waive departure from the provisions of the Note, and to release or otherwise deal with any collateral security for payment of the Note, provided, however, all such amendments shall be in writing and executed by the City or its Assigns and the Borrower. SECTION 7.03: NOTICES All notices, consents, requests, demands, and other communications hereunder shall be in writing and shall be deemed to have been duly given to a party hereto if mailed by certified mail, prepaid, to the City at its address set forth below, and to the • 10 • Borrower at the address set forth below or at such other addresses as any party may have designated in writing to any other party hereto: CITY: Director Department of Community and Economic Development 451 South State Street, Room 404 Salt Lake City, UT 84111 BORROWER: KUTV Holdings, Inc. With a copy to: Viacom, Inc. 1515 Broadway New York, NY 10036 Attention General Counsel SECTION 7.04: PAYMENTS The Borrower will make payments to the City in accordance with the terms, conditions, and instructions contained in the Note. SECTION 7.05: SURVIVAL OF REPRESENTATIONS AND WARRANTIES All agreements, representations, and warranties made by the Borrowers herein, or any other document or certificate delivered to the City in connection with the transactions contemplated by this Loan Agreement, shall survive the delivery of this Agreement, the Note, Trust Deed and the Security Agreements hereunder, and shall continue in full force and effect so long as the Note is outstanding. SECTION 7.06: SUCCESSORS AND ASSIGNS This Loan Agreement shall be binding upon the Borrower, its Successors, and Assigns, except that the Borrower may not assign or transfer its rights without City's prior written consent. This Agreement shall inure to the benefit of the City, its Successors and Assigns, and, except as otherwise expressly provided in particular provisions hereof, all subsequent holders of the Note. SECTION 7.07: COUNTERPARTS This Loan Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. • 11 • SECTION 7.08: GOVERNING LAW This Loan Agreement and the Note and Security Agreements, Financing Statements and Mortgage shall be deemed contracts made in the state of Utah and, for all purposes, shall be construed in accordance with Utah Law. SECTION 7.09: ARTICLE AND SECTION HEADINGS Article and Section headings used in this Agreement are for convenience only and shall not affect the construction of this Agreement. SECTION 7.10: BORROWER DEFINED/USE OF PRONOUNS The word "Borrower" shall be deemed and taken to mean each and every person or party executing this document as a Borrower herein. If there is more than one person or organization set forth on the signature line as the Borrower, their liability hereunder shall be joint and several. If there is more than one Borrower, any notice required or permitted by the terms of this Loan Agreement may be given by or to anyone thereof, and shall have the same force and effect as if given by or to all thereof. The use of the neuter singular pronoun to refer to Borrower or City shall be deemed a proper reference even though Borrower or City may be an individual, a partnership, a corporation, or a group of two or more individuals or corporations. The necessary • grammatical changes required to make the provisions of this Loan Agreement apply in the plural sense where there is more than one Borrower and the corporations, associations, partnerships, or individuals, males or females, shall in all instances be assumed as though in each fully expressed. G:\Agreements 03lKUTV\KUTVExA-LVS's 5-1-03 clean • 12 �• ick iardina Associates, Inc. tility Rate and inancial Consultants May 5, 2003 Ms. Cindy Gust-Jenson Specializing in: Executive Director • Cost of Service Studies Office of the City Council • Impact Fee Studies • Financial Feasibility Analysis City& County Building • Litigation Support 451 S. State Street, Room 304 • Privatization Studies • Mergers and Acquisitions Salt Lake City, Utah 84111 • Management and Organizational Reviews Re: Fiscal and Economic Impact of Nordstrom's Potential Relocation __ Dear Ms. Jenson: Thank you for the opportunity to assist the City in the analysis of the fiscal and economic impact of Nordstrom's potential relocation from Crossroads Mall to the Gateway or close the current Crossroads Mall location. The balance of this engagement letter outlines our data needs, scope of work,proposed budget and schedule. We envision a final report quite similar in content and organization to our analysis of the proposed Grand Salt Lake Mall completed for the City in May of 2000. • We are confident(with data from the City)that we can answer many of your research questions quantitatively. (Questions you sent via e-mail on Monday April 28th.) However, some of the questions require more informed judgment about mall operations than we possess. The scope of work discussion below clearly identifies those questions we can answer using our methodology, and those questions that would need to be answered by a shopping mall expert. Data to be Provided by the City • Most recent City budget to update our 2000 fiscal model. • Estimated square footage and aggregated sales tax performance for Gateway, Crossroads, ZCMI and Main Street shopping district. • If possible,provide the same data as above for the other dozen SLC metro area malls (these other malls were included in the Grand Salt Lake Mall Analysis in 2000). • Detailed sales and property tax data for Nordstrom. In order to meet the presentation deadlines for next week this data must be received by the close of business on Wednesday, May 7th. �300 S.Parker Road Suite 305 Aurora,Colorado 80014 Phone 303 369-3535 Fax 303 369-3540 &A May 5, 2003 Page 2 • Scope of Work The following scope of work is organized according to the e-mailed questions. We have indicated how we could respond to each question. "N/A" signifies that our methodology based on the fiscal impact model,Urban Land Institute (ULI) and Federal Consumer Expenditure Survey(CES) data is not suitable to answer that particular question. • How much sales tax does Nordstrom generate? The City would provide us this data; we could compare it to other flagship anchors nationally using ULI data. This comparison will help us to measure the relative financial health and secondary impact of Nordstrom at Crossroads. • How much property tax does Nordstrom generate? The City would provide us this data; we could compare it to other flagship anchors nationally using ULI data. This comparison will help us to measure the relative financial health and secondary impact of Nordstrom at Crossroads. • What is the potential impact on sales and property tax if Nordstrom moves to Gateway? Using an updated version of our 2000 fiscal model for the City, we could "net out"the change in direct tax revenue against the change in service delivery costs due to potentially different store size and store age. • What is the potential impact on sales &property tax if Nordstrom leaves the City? Using an updated version of our 2000 fiscal model for the City, we could "net out"the direct loss of revenue against direct service delivery costs. • What is the potential impact on the viability of other businesses on Main Street if Nordstrom leaves? Using ULI data and our fiscal model, we could conduct sensitivity analysis on the financial health of businesses and fiscal impact to the City resulting from a potential drop in Main Street sales. • Given experience in other cities,what is the likelihood that another major retail store would move in to replace Nordstrom(Dillard's, etc.)? N/A • &A May 5, 2003 • Page 3 • Given experience in other cities, is there a danger that office and other uses on Main Street could shift to Gateway if retail shifts? The answer to this question is clearly yes; however, our methodology cannot quantify the likelihood of such a shift occurring. • What is the impact on all three malls (i.e., Gateway, Crossroads,ZCMI) if Nordstrom leaves Salt Lake City? Using ULI data and our fiscal model, we could conduct sensitivity analysis on the financial health of the malls and fiscal impact to the City resulting from a potential drop in sales due to the absence of Nordstrom's drawing power. • Can the Salt Lake City market support both the Gateway and the downtown shopping malls (Crossroads &ZCMI) from an economic point-of-view? Using Federal Consumer Expenditure Survey (CES) and ULI sales performance data, we can quantify the size and geographic scope of the market for Gateway and the downtown malls, and opine what type of capture rates will be required for all to survive. • • Economically should these retail nodes be looked at as two individual centers, or should the Gateway be considered a part of downtown? See above answer. • Might Nordstrom have more sales in the long-term in a downtown location or in Gateway? Our methodology cannot answer this question. It is largely dependent on store specific factors (e.g., store size, merchandising etc.) and macroeconomic factors beyond the City's or property manager's control. • What short-term economic impact would there be on Nordstrom if they stayed downtown through a major construction project on the Crossroads Mall, as has been mentioned by the new owners? Using ULI data and our fiscal model, we could conduct sensitivity analysis on Nordstrom's financial health and the fiscal impact to the City of a potential drop in sales due to construction. • &A May 5, 2003 Page 4 • • From an economic point-of-view, is it in Nordstrom's interest to move to the Gateway or stay downtown given the current situation, the planned construction and the planned significant investment in the downtown area by the LDS Church? N/A. • How many of the tenants in the Crossroads Mall have tied their leases to the continued presence of Nordstrom? What is the potential economic impact of this situation? Given experience in other communities, what is the likelihood that other Crossroads tenants will leave and go to Gateway if Nordstrom leaves? The answer to this question depends upon the availability of proprietary lease data from the property manager. We will seek to obtain a list of how many current Crossroads leases are tied to the presence of Nordstrom., If we were able to obtain such data, we could use ULI data to analyze the financial impact of certain stores leaving Crossroads on mall performance. • Gateway is considering adding a Target in addition to Nordstrom. The City has already approved a Wal-Mart at 1300 South and 300 West. Are there economic issues the City should be thinking about relating to this situation as well? Is there likelihood that the Target • and Wal-Mart will have an impact on the downtown? Using Federal Consumer Expenditure Survey (CES) and ULI sales performance data, we can quantify the size and geographic scope of the market for both Wal-Mart and Target, and opine as to the capture rates required for both stores to survive. • If Nordstrom moves to Gateway,what will the economic impact on Gateway be? Is it essential for Gateway to have Nordstrom in order to succeed? N/A • Since the LDS Church now owns both ZCMI and Crossroads Mall, and has announced plans to reconfigure both blocks, adding housing and open space, the"look and feel" of Main Street will change. How will that reconfiguration impact existing retailers? N/A I 1 (, May 5, 2003 • Page 5 • Zions Securities is considering urban"big box"development on the block between State and Second East,between Social Hall and 100 South. What impact would the presence of a major discount retailer at this location have on existing Main Street businesses? Using Federal Consumer Expenditure Survey (CES) and ULI sales performance data, we can quantify the size and geographic scope of the market for this type of development. Budget We can complete this project for a fixed fee of$14,500 including all professional time and expenses for a trip to Salt Lake City by Tom Pippin and me(to present to Council on May 15th) We would submit a single invoice to you on May 15th with the delivery of our final report and payment would be due within 30 days. Schedule We can begin this project immediately upon your notice to proceed. If the City fulfills our data 411 request by Wednesday, May 7t,we can produce a draft report for your review by the close of business—Monday,May 12th. We would then respond to your edits and prepare a final report and overhead-style presentation for a City Council meeting on Thursday,May 15th. If the terms of this engagement letter are acceptable,please indicate so by signing below and returning a copy to me. Thank you for this opportunity to again be of service to the City. Sincerely, &� Richard D. Giardina President Signature: Jill Remington Love Title: City Council Vice Chair • Date: