LIBRARY OPERATING AGREEMENT (January 2014 - December 2016)

LIBRARY OPERATING AGREEMENT

Dated: January 1, 2014

PARTIES TO THIS AGREEMENT:

GREATER VICTORIA PUBLIC LIBRARY BOARD (the BOARD)

CORPORATION OF THE DISTRICT OF CENTRAL SAANICH (CENTRAL SAANICH)

CITY OF COLWOOD (COLWOOD)

CORPORATION OF THE TOWNSHIP OF ESQUIMALT (ESQUIMALT)

DISTRICT OF HIGHLANDS (HIGHLANDS)

CITY OF LANGFORD (LANGFORD)

DISTRICT OF METCHOSIN (METCHOSIN)

CORPORATION OF THE DISTRICT OF OAK BAY (OAK BAY)

CORPORATION OF THE DISTRICT OF SAANICH (SAANICH)

CORPORATION OF THE CITY OF VICTORIA (VICTORIA)

TOWN OF VIEW ROYAL (VIEW ROYAL)

INTRODUCTION

This Agreement is authorized by the Library Act, (RSBC, 1996, Chapter 264) section 48.

The Greater Victoria Public Library is a municipal library under the Act. It was formed by agreement and with the approval of the City of Victoria which established the Victoria Public Library in 1889. This written agreement governs the Greater Victoria Public Library Board and commits member municipalities to cooperate in the provision of library services. See Appendix A for History of Greater Victoria Public Library System.

The parties to this Agreement agree to cooperate in the delivery of library services in the Municipalities of Central Saanich, Colwood, Esquimalt, Highlands, Langford, Metchosin, Oak Bay, Saanich, Victoria, and View Royal. Each Municipality has authorized this agreement.

The Municipalities agree to provide for the joint management, maintenance, improvement, operation, control, and use of Greater Victoria public libraries.

1 INTERPRETATION

1.1. The following appendices form part of this Agreement: Appendix A – History of Greater Victoria Public Library System Appendix B – Ownership/Shared Property

2 TERM

2.1. This Agreement will be in force from January 1, 2014, until December 31, 2016, subject to Sections 9 and 10.

3 SERVICE AREA

3.1. The service area (Service Area) of this Agreement is the combined geographical area of each member Municipality.

4 THE BOARD

4.1. The Board will continue as a Municipal library board under the Library Act.

4.2. The Board will: (a) exercise the powers granted to and fulfill the duties imposed on it by the Library Act; (b) provide library services to each Municipality; (c) make recommendations to the Municipalities concerning potential new parties to this Agreement; (d) maintain insurance coverage for the replacement value of all furniture, equipment, and library materials and public liability insurance coverage; (e) submit to each Municipality every year audited financial statements for the Board; (f) subject to the exercise of a right of appeal or similar remedy, pay any judgment or award against the Board by a court or tribunal having jurisdiction over the Board; (g) develop and report on the strategic plan and submit a copy to the Council of each Municipality by March 1st of each year; and (h) provide a copy of the annual report required under the Library Act to the Council of each Municipality.

4.3. The Board will provide library service to the residents and electors of the Service Area.

4.4. The Board will not adopt rules that differentiate among residents and electors of the Service Area for delivery of library service.

4.5. The Board will have exclusive possession, regulation, control, and management of branches.

4.6. The Board has all the powers contemplated by the Library Act and any additional powers permitted by law.

4.7. The Board may provide certain library services on a contractual fee-for-service basis to persons who are neither residents nor electors of any of the Municipalities.

4.8. Each Municipality will appoint one member from their municipal council and, in addition, appoint one member per 25,000 people using the current Census of Canada as a population base with the exception of Victoria as required by the Library Act section 5(2). Changes to this structure would be made related to population numbers reported in each five-year census report. In the event of amalgamation of Municipalities who are part of this Agreement, appropriate representation will be determined using the latest population numbers and adjustments to the ratio to limit the Board from exceeding 19 members.

4.9. Based on Section 4.8, the Board will consist of: (a) five members appointed by Saanich Council; (b) five members appointed by Victoria Council; (c) two members appointed by Langford Council; and (d) one member appointed by each of Central Saanich, Colwood, Esquimalt, Highlands, Metchosin, Oak Bay, and View Royal.

4.10. Upon admission of a new municipal member or members, the Board composition is to be changed in accordance with Section 4.8 in order to provide appropriate representation for all.

4.11. The appointment, terms of office and qualifications of Board members, requirements as to meetings, and other matters will be as provided in the Library Act, Part 2.

5 BUDGETS

5.1. The Board will submit a Provisional Five-Year Financial Plan to the Council of each Municipality before October 31st of each year for the following year. Each municipality shall use reasonable efforts to respond to the Provisional Five-Year Financial Plan before December 31 of the relevant year, so the Board has time to respond appropriately to input from each municipality.

5.2. The Board will submit an Annual Operating Budget¹ and a Five-Year Financial Plan² before March 1 of each year to the Council of each member Municipality for its approval.

5.3. An Annual Operating Budget submitted by the Board must be approved by Council resolution of Municipalities which together were required to pay in the previous calendar year more than half the operating cost of the Board.

5.4. An Annual Operating Budget must be approved by May 1 of each year in accordance with Section 5.3. If an Annual Operating Budget has not been approved by May 1 in any year, the approved Annual Operating Budget will be the same as the most recent approved Annual Operating Budget.

5.5. The Board will include the following operating costs of the Library in the Annual Operating Budget: (a) salaries, wages, and employee benefit costs of persons appointed by the Board under sections 9(c) and (d) of the Library Act; (b) the cost of buying new books, and other library materials; (c) replacement costs such as replacing signs inside and out; replacing floor and window coverings as necessary; replacing furniture and equipment; (d) payments for the lease of premises for terms not exceeding fifteen (15) years, or for the lease-to-purchase of equipment for terms not exceeding six (6) years; (e) contents insurance, not including building insurance; (f) applicable costs from Section 8.1 associated with the Administration portion of the Central Branch building, which is not a branch. Such costs are determined by deducting Victoria's share of the costs as determined under Section 8.7 and View Royal's share of the costs as determined under Section 8.8 from total costs for the Central Branch as determined under Section 8.1; (g) applicable costs from Section 8.1 associated with the Collection and Technical Services section of the Juan de Fuca Branch, which is not a branch. Such costs are determined by deducting Langford, Colwood, Metchosin and Highlands' share of the costs as determined under Section 8.10 from total costs for the Juan de Fuca Branch as determined under Section 8.1; (h) utilities including heat, light, water, telecommunication, garbage collection, and recycling; (i) the following maintenance and repair costs of the Library: (i) cost of janitorial services including washing windows inside and out and cleaning flooring and window coverings; (ii) painting and decorating the interior of buildings; (iii) maintaining signs inside and out; (iv) repairing furniture and equipment including shelving; and (j) other costs the Board believes to be necessary from time to time.

5.6. Each Municipality will provide in its annual budget a sum sufficient to finance its share of the Board's approved Annual Operating Budget.

5.7. The Board will not expend funds which are not contemplated in an approved Annual Operating Budget, except in an emergency. In a perceived emergency, Library staff shall contact the Board chair, or if that person cannot readily be contacted, the vice-chair, or if that person cannot readily be contacted, the chair of the Finance Committee.

5.8. The Board will not: (a) incur expenditures in a calendar year which in total exceed the approved Annual Operating Budget; or (b) use funds approved for one purpose in an approved Annual Operating Budget for another purpose unless the funds reallocated comprise less than two percent (2%) of the approved Annual Operating Budget.

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¹ "Annual Operating Budget" means the detailed estimate of the sums required by the Board submitted under section 10(1) of the Library Act, together with an estimate of revenue ² "Five-Year Financial Plan" means the Annual Operating Budget combined with annual operating budgets for the four subsequent calendar years

6 OPERATING COSTS – CALCULATION

6.1. Each Municipality will pay a share of the operating cost of the Board each year equal to the Net Operating Cost³ multiplied by the sum of: (a) fifty percent (50%) of the (converted assessment value⁴ for the Municipality divided by the total converted assessment values of all of the member Municipalities); and (b) fifty percent (50%) of (the population⁵ of the Municipality divided by the total population of the member Municipalities).

6.2. For the purpose of this part the assessed value of land and improvements will be converted by adding together the products obtained by multiplying the assessed value for each Class of Property⁶ by the percentage set out below for the class:

6.3. The value of Crown Land⁷ will be: (a) in the case of Crown Land owned by the British Columbia Hydro and Power Authority, the assessed value under the Assessment Act for the calendar year before the previous calendar year; and (b) in the case of Crown Land owned by the Government of Canada or by an agent of the Government of Canada, the value, in the calendar year before the previous calendar year, of land and improvements that would result in a property tax equal to the grant in lieu of taxes if the land and improvements were not Crown Land; and (c) in the case of all other Crown Land, the lesser of the assessed value under the Assessment Act for the previous year and the value which would result in a property tax equal to the grant in lieu of taxes if the land and improvements were not Crown Land.

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³ "net operating cost" means the difference in an Approved Annual Operating Budget between the estimates of:

1. Expenditures; and
2. Revenues, not including revenue from member municipalities. ⁴ "converted assessment value" for a Municipality means, in accordance with the Assessment Act, the total assessment value in the previous calendar year of land and improvements taxed by the Municipality for general municipal purposes according to the property tax roll and the value of crown land under Section 6.3 of this agreement, converted by property class and conversion rates as outlined under Section 6.2 of this agreement. ⁵ "population" for a Municipality means the municipality's most recent population estimate (or census, if available) published by the Province of British Columbia, BCStats, under Demography, Population, Estimates, Municipalities, Regional Districts and Development Regions. ⁶ "class of property" has the meaning defined in the Prescribed Classes of Property Regulation, B.C. Reg. No. 438/81 or similar enactment as it exists from time to time; ⁷ "Crown Land" means land and improvement owned by the Crown or an agent of the Crown in a previous calendar year if the municipality received or is due to receive a grant in lieu of taxes, in respect of the calendar year before the current calendar year;

7 OPERATING COSTS – PAYMENT

7.1. In each calendar year, each Municipality will pay to the Board: (a) on January 1 two-twelfths of A and on the first day of each month from February to November inclusive one-twelfth of A where A equals the Municipality's share of the operating cost for: (i) the previous calendar year if the payment is made before the Annual Operating Budget has been approved; and (ii) the current calendar year if the payment is made after the Annual Operating Budget or amended Annual Operating Budget has been approved under Section 5.3 or determined under Section 5.4.

7.2. In order to adjust the monthly payment required by the preceding paragraph, each Municipality must pay at the same time as the first payment is made after the Annual Operating Budget or amended Annual Operating Budget has been approved an amount calculated by subtracting C from B where: (a) C equals the total amount of the Municipality's payments made or to be made during that calendar year as required by Section 7.1; (b) B equals the Municipality's share of the operating cost for the current calendar year.

7.3. At the end of each calendar year, the Board will reconcile the accounts and will either return any excess payment to each Municipality or apply any excess payment to the subsequent calendar year if approved by the Municipal Treasurer, and each Municipality will pay any deficiency to the Board.

8 BRANCHES

8.1. Each Municipality will either alone or jointly⁸ with one or more of the other Municipalities: (a) provide premises for each branch or branches in the Municipality free of charge, in accordance with the Library facility plan⁹; (b) provide two years' notice to all Municipalities regarding the impact of a new branch on all the partners. Provision for a new branch must be included in the Five-Year Financial Plan unless otherwise authorized by a resolution of the Councils of each municipality; (c) Start up: Provide a well-appointed library building that meets all standards and building codes with adequate parking and shuttle/delivery truck access and furnish and equip the premises with an initial inventory: telecommunication system, computers and other electronic equipment including self-check equipment, millwork or display units, shelving, tables and chairs, floor and window coverings, signage, library collection, book-return systems including chutes and bins, bicycle racks, outdoor benches, and security alarm and monitoring systems including gates, all of which are to a standard or to specifications acceptable to the Board; (d) keep the premises in good and substantial repair and condition including: (i) regular major asset maintenance¹⁰ and ongoing necessary repair or replacement of: the heating and cooling plant; plumbing and plumbing fixtures; inside and outside lighting; structural interior fixtures including doors, handrails, ceilings, book-return systems and chutes, and other integral building features; external structures including roof, windows, and doors; outside painting or varnishing; sidewalks; parking lots; and grounds structures including arbours and sculptures; (ii) snow and ice removal from parking lots and sidewalks; (iii) grounds and sprinkler system maintenance; (iv) provision and maintenance of bicycle racks and benches; (v) maintenance, repair, and replacement of security alarm systems; (vi) provide insurance on the building but not the contents. (e) reimburse the Board for costs that have been jointly approved by the Municipality and the Board of feasibility studies, consulting reports and project management in connection with the purchase, lease, construction, alteration, or relocation of a branch provided by that Municipality;

8.2. Shelving, furniture, and equipment located in a branch will be the property of the Board.

8.3. The Board will not discontinue the operation of a branch without the consent of the Municipality in which the branch is located or the majority of those Municipalities that jointly provided the branch.

8.4. A branch will not be relocated without joint agreement between either a Municipality or the majority of those Municipalities that jointly provided the branch and the Board.

8.5. Each Municipality may either alone or jointly with one or more of the other Municipalities: (a) Enter into an agreement with a building maintenance service provider to maintain library facilities, in accordance with subsection 8.1 (d), with cost shared among municipal branch providers; (b) Establish a Major Asset Maintenance fund¹¹ for the library branch. Major Asset Maintenance funds may be held and administered by the Board if jointly owned, or may be held by the municipality where there is not joint ownership of the branch.

8.6. Victoria and View Royal will fulfill their obligations under Section 8.1 by paying a share of any applicable costs outlined in Section 8.1 related to the Central Branch determined under Sections 8.7 and 8.8.

8.7. Victoria's share of the costs of the Central Branch under Section 8.6 will be the fraction obtained by dividing Victoria's branch floor area by the Central Branch total floor area.

8.8. View Royal's share of the costs of the Central Branch under section 8.6 will be the fraction obtained by dividing View Royal's branch floor area by the Central Branch total floor area.

8.9. Langford, Colwood, Metchosin and Highlands will fulfill their obligations under Section 8.1 by paying a share of any applicable costs outlined in Section 8.1 related to the Juan de Fuca Branch determined under Section 8.10.

8.10. Langford, Colwood, Metchosin and Highlands' share of the costs of the Juan de Fuca Branch under Section 8.9 will be their respective, pro-rata share of the branch floor area, which is deemed to be 80%, calculated as follows:

• Municipality's percentage share of the Annual Operating Budget divided by the sum of Langford, Colwood, Metchosin and Highlands percentage shares of the Annual Operating Budget.

8.11. A Municipality may fulfill its obligations under Section 8.1 by purchasing a portion of an existing branch if approved by the Board, the owners of the building, and by Council resolution of two-thirds of the other Municipalities; and thereafter by paying its proportionate share of the operating costs of that building. The amount to be paid for purchase of a portion of a building shall take into consideration the original cost to the current owners, depreciation over the expected period of ownership or lifespan of the building, and the fair market value of land, as well as leasehold or other rights or obligations which may be attached to it.

8.12. (a) Where a building or a part of a building (other than a branch in terms of Section 8.1) is used by the Board for the benefit of all of its member Municipalities and the building or part of the building was paid for by some but not all of Municipalities (such as the Administration portion of the Central Branch building which is not a branch, and the Collection and Technical Services section of the Juan de Fuca Branch building which is not a branch), then those Municipalities which did not contribute to the initial acquisition of such building or who have not subsequently purchased a portion of such building will pay reasonable rent to those Municipalities which did contribute to the initial acquisition of the building or who have subsequently purchased a portion of such building. (b) For the purposes of subsection (a), reasonable rent shall be at least $10 per square foot per annum, provide a return of eight percent (8%) on the original cost of the building or part of the building, or such other rent as is agreed by Municipalities which together were required to pay in the previous calendar year more than half the net operating cost¹² of the Board. (c) The rent calculated in terms of subsection (b) will be borne by those Municipalities required to pay it in the same proportions as the Annual Operating Budget is shared and distributed to those Municipalities entitled to receive it in the same proportions as the building or part of the building is owned by or was paid for by them.

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⁸ See APPENDIX B for a list of branches with joint ownership information ⁹ Making Space for the Future: GVPL Facilities Plan, including any subsequent updates and implementation plans ¹⁰ "major asset maintenance" refers to maintenance, repair or replacement of major building components to maintain the life of the asset, including, but not limited to, structural, mechanical, electrical, architectural and roofing. ¹¹ "major asset maintenance fund" refers to a reserve fund to be used for maintenance, repair or replacement of major building components to maintain the life of the asset(s), including, but not limited to, structural, mechanical, electrical, architectural and roofing. Contributions to the fund are typically set based on a long-term projection of expenses using the expected life of the various building components. ¹² "net operating cost" means the difference in an Approved Annual Operating Budget between the estimates of:

1. Expenditures; and
2. Revenues, not including revenue from member municipalities.

9 NEW MEMBERS

9.1. The Board will not recommend a potential new party to this Agreement unless: (a) the Board is satisfied that there will be no negative impact on the quality and cost of service for the existing parties; (b) the potential new party together with the Board has developed a service plan which identifies the level of service to be offered in the community of the potential new party, including the branch and collection size; and (c) the potential new party has agreed to pay for or provide a minimum start-up collection which is acceptable to the Board.

9.2. A service plan under subsection 9.1 (b) may provide for implementation of the plan over a period of time.

9.3. The Board will be responsible for long-term growth and development of the collection.

9.4. Within two (2) months of receiving the Board's recommendation to admit a new party to this Agreement, the Council of each Municipality will vote to admit or not to admit the new party.

9.5. A new party will not be admitted without the consent of two-thirds of the municipal members.

9.6. A new party will have representation on the Board according to Section 4.8.

10 TERMINATION AND WITHDRAWAL

10.1. A Municipality may withdraw from this Agreement by notifying the Board and every other Municipality in writing.

10.2. A withdrawal is effective on December 31st in the year following the year in which notice is given.

10.3. A Municipality which has withdrawn: (a) ceases to have rights or obligations under this Agreement or otherwise with respect to the Library, except as provided in this section; (b) will pay to the Board any adjustment necessary under Section 7.3; (c) will pay to the Board the cost, if any, of removing patron and bibliographic records from the records of the Board; (d) will buy out its share of any existing lease to purchase; (e) will continue to be obligated for its share of any uninsured claim or judgment of a court or tribunal having jurisdiction over the Board arising out of circumstances which existed before the date on which the withdrawal of the Municipality is effective; (f) will pay to the Board all employee-related costs of the Board required and as a result of the withdrawal, pursuant to the Employment Standards Act and Collective Agreement then in force.

10.4. The Board will return to, or at the Board's option compensate, the withdrawing Municipality or Municipalities for the depreciated value using the Board's amortization rates of any books or other library materials, shelving, furniture, vehicles or equipment normally located in a branch or its share of such items in the case of a Municipality which jointly provided the branch. Any dispute will be decided under the terms of Section 13 of this Agreement.

10.5. If this Agreement expires and is not renewed or if Victoria adopts a bylaw abolishing the Library under section 13 of the Library Act: (a) the Municipalities and the Board will try to reach an agreement in writing as to the distribution of the assets and liabilities of the Board; and (b) the terms of this Agreement will remain in force until: (i) an agreement is reached under subsection (a); or (ii) a resolution has been reached under Section 13 of this Agreement.

10.6. If the Municipalities do not reach an agreement under Subsection 10.5 (a) within six (6) months of the expiry date of this Agreement, the distribution of the assets and liabilities of the Board will be decided under the terms of Section 13.

10.7. If this Agreement is renewed and the renewed Agreement is approved or executed by some but not all of the Municipalities by the time this Agreement expires, then those Municipalities who have not approved or executed the new Agreement will be deemed to have given the notice of withdrawal referred to in Section 10.1, and the terms of Sections 10.2, 10.3 and 10.4 will apply to them.

11 MISCELLANEOUS

11.1.1. This Agreement replaces the Agreement of January 1, 2009.

12 COUNTERPART CLAUSE

12.1.1. This Agreement may be signed in counterparts that: (a) have the same effect as if the parties had all signed the same document; (b) will be construed together to be an original document; and (c) will constitute one and the same Agreement.

13 DISPUTE RESOLUTION

13.1. In the event of a dispute concerning the terms, interpretation, or application of this Agreement between a member Municipality or Municipalities and the Board or between Municipalities the dispute will be resolved as follows: (a) the parties to the dispute will appoint an independent mediator with experience in the resolution of commercial disputes who will assist the parties to reach a mutually acceptable resolution of the dispute within ninety (90) days. Each party will bear their own costs in relation to the mediation process and the other fees and expenses associated with the mediation process will be shared equally between the parties; and (b) if the dispute is not settled by mediation in accordance with subsection 13.1(a) within ninety (90) days, the dispute will be determined by arbitration pursuant to the provisions of the BC International Commercial Arbitration Centre (bcicac.com). The result of arbitration will be final and binding. Each party will bear their own costs in relation to the arbitration process and the other fees and expenses associated with the arbitration process will be shared equally between the parties.

APPENDIX A – HISTORY OF GREATER VICTORIA PUBLIC LIBRARY SYSTEM

The Greater Victoria Public Library System started as the Victoria Public Library in 1889.

APPENDIX B – OWNERSHIP/SHARED PROPERTY

• Owner share of entire Strata Lot 1 (48,222 square feet) ~ Owner share of Collection and Technical Services area (3,893 square feet) based on building construction paid ratios