Title
Consider approving Resolution No. 2013-076 authorizing the City Manager to negotiate and execute the first amended and restated agreement for library services with Library Systems & Services and take appropriate action.
Body
BACKGROUND:
In November 2010, at the direction of City Council, a contract was negotiated for the operation of the Farmers Branch Manske Library for a period of three years beginning January 1, 2011 and ending December 31, 2013. The goal in hiring Library Systems and Services (LSSI) to operate the Manske Library was to provide Library services to the Farmers Branch community in a more cost effective way and maintain or increase service levels to the community.
At the July 16, 2013 Study Session, City Administration gave a presentation discussing the current LSSI contract, cost savings over three years and service levels. City Council gave City Administration direction to negotiate an additional multi-year contract with LSSI.
DISCUSSION:
City Administration will give a brief presentation reviewing the outcome of the initial contract and review the terms of the new contract versus the expiring contract.
The new agreement is a 3 year fixed price agreement that includes an overall 8.5% increase from the previous agreement or $89,917 additional per year. The agreement over the three year period will cost the City $3,426,438 or $1,142,146 per year. Even with the price increase, the new agreement is anticipated to save $302,000 per year compared with the cost of providing library services with city employees.
One change proposed in the new agreement is the transition of responsibility for utility costs back to the City (water/sewer, electricity, gas, custodial, telephone and internet). In the previous agreement this was the responsibility of LSSI. This change is being proposed in order to eliminate reimbursement payments for bills that are already in the City's name which has required administrative time from both LSSI and the City. Taking this transition into account, the overall cost of the contract appears to decrease; however, when the cost of utilities is backed out of the current contract cost and compared to the proposed contract cost which no longer included the cost for utilities, there is an 8.5% increase.
Two other major changes included in the new agreement include the installation of radio frequency identification (RFID) tags and Self Check-Out stations at no additional cost, a $81,917 minimum value, and the elimination of the employee clause which prohibited the City from hiring any LSSI employee for 6 months after termination or expiration of the contract.
RECOMMENDATION:
The Farmers Branch Manske Library Board received a presentation at their June 20th meeting and voted unanimously to recommend to City Council to continue contracting with LSSI.
ACTIONS:
1) Motion to approve Resolution No. 2013-076 authorizing the City Manager to negotiate and execute the first amended and restated agreement for library services with Library Systems & Services.
2) Motion to deny Resolution No. 2013-076 authorizing the City Manager to negotiate and execute the first amended and restated agreement for library services with Library Systems & Services.
3) Motion to modify to meet the needs of the Council.
4) Motion to table the issue for further study or take no action.
ATTACHMENTS:
1. Manske Library Presentation
2. Resolution No. 2013-076
3. Library Services Agreement
4. Email from Pat Edmiston