Agenda item

Library Review 2016 - Future Support Arrangements for Volunteer Run Libraries

Report of the Executive Director, Communities

Decision:

9.1

The Executive Director, Communities submitted a report in relation to future support arrangements for volunteer run libraries.

 

 

9.2

RESOLVED: That:-

 

 

 

(a)

Cabinet continue support for Associate libraries until 31st March 2020, to assist their viability and stability as follows - a support package to the value of £262k in year 1 that maintains the level of support provided from 2014-2017;  for year 2 the support package will not be less than 80% of £262k; and in year 3, not less than 70% of £262k, subject to identifying the funding as part of the 2017-18 budget process;

 

 

 

 

(b)

the support package to include a grant pot, a new book fund, a small marketing fund, and the operational costs of the Associate libraries remaining on the Library Management System; a breakdown of the support package is listed in the report in Section 1 ‘Proposal’;

 

 

 

 

(c)

continued support be provided for the Associate and Co-delivered libraries until 31st March 2020 where this can be resourced by the Library, Archives and Information Service (LAIS) with existing staff and core budget; this includes support from SCC run Hub libraries, advice and support with local and national initiatives, I.T support and training relating to the Library Management System;

 

 

 

 

(d)

continued support be provided for Co-delivered libraries to 31st March 2020; co-delivered libraries receive the same offer as SCC’s Hub libraries without the staffing and funded from LAIS core funding;  building running costs are paid directly by LAIS;  co-delivered libraries may be re-charged for running costs that are above the budget due to extended non-library usage of the building;

 

 

 

 

(e)

future funding and support for Associate and Co-delivered libraries for years 4 and 5 (2020/21 and 2021/22) will be delegated for decision by the Executive Director, Communities in consultation with the Cabinet Member for Community Services and Libraries.

 

 

 

 

(f)

provision of the Library Management System, I.T., maintenance and related software, supplied via the corporate wide contract, will be free of charge until 2019, when this will be reviewed as part of corporate IT contract negotiations.

 

 

 

9.3

Reasons for Decision

 

 

9.3.1

The current arrangements for Associate and Co-delivered libraries are due to expire on 31st March 2017. 

 

 

9.3.2

Continued support will increase the likelihood of all the volunteer run libraries remaining open and vibrant into the medium and long term as they develop and grow in depth of experience and capability.

 

 

9.3.3

Continued support for Associate libraries will give added confidence to trustees and volunteers, at a point they are taking on-board lease responsibilities.

 

 

9.3.4

By supporting the volunteer run libraries to remain on the Library Management System, all SCC library members can access any library in Sheffield using a single, city-wide library card.

 

 

9.3.5

Continued support will provide a period of financial stability and growth that will attract more volunteers and trustees, and give them additional time to build capacity and develop external funding opportunities. 

 

 

9.3.6

The proposal will ensure the standards and controls relating to the operation of the Council’s Library Management System by volunteer libraries are maintained.

 

 

9.4

Alternatives Considered

 

 

9.4.1

The support arrangements for Associate and Co-delivered libraries are due to end as of 31st March 2017.  There were 4 possible options to consider, with Option 4 being recommended as the preferred option.  The benefits and risks of the preferred option can be found in the Proposal in section 1 of the report.  The other options considered and rejected are outlined below:

 

Option 1

 

LMS provision as agreed to 2019, but no further grant support for Associate libraries, and the cessation of Co-delivered libraries (who may become Associate libraries) as of 1st April 2017.  The provision of the LMS to be resourced through current corporate contracts and current library service staff and library budget.

 

Benefits of Option 1

 

·         The Council will not have to find the additional funding for the support package

·         Library groups can operate independently

·         The Co-delivered libraries are not yet generating sufficient income to meet the income earning target required to meet all the costs of running the library.  This option would mean the library service would not have to find the budget to meet this deficit, thus making a saving.

 

Risks of Option 1

 

·         The Associate libraries can stay on the LMS until 2019 but with limited support from the Library Service.  This could mean standards relating to the LMS may reduce, especially as training and technical support will be minimal. 

·         Van rounds delivering books would either cease or be very limited.  Therefore the length of time it would take for library users to receive a reserved book could significantly increase.

·         Some of the library groups may be unable to meet their financial obligations, leading to closure.

·         The instability of funding could mean volunteers are less willing to get involved and could lead to reduced library hours or library closure.

·         The Co-delivered libraries would be at greatest risk of closure as they may not have accumulated sufficient fundraising capacity to be sustainable as an Associate library.

 

Option 2

 

Continue the existing support arrangements for Co-delivered libraries, with the costs funded by the LAIS service budget for a further period.  The grant provision for Associate libraries would come to an end as of 31st March 2017, with LMS provision to 2019 as Option 1.

 

Benefits of this option 2

 

·         Enable 5 libraries that serve some of the most deprived communities in Sheffield to continue and have stability of service.

·         Financial independence of the Associate libraries may help grant applications.

 

Risks of this option

 

·         Some Associate libraries may not be able to meet their financial obligations, leading to them surrendering their lease and the library closing.

·         The instability of funding for the Associate Libraries may discourage volunteers from running and managing the libraries.

·         The reducing income generated from library fees and charges in the Co-delivered libraries may lead to budget reductions in other LAIS service areas, which may impact on the quality of service that can be delivered.

·         If there is a budget reduction in future years for the LAIS, it may not be affordable for the service to continue to pay for all of the Co-delivered libraries from its core budget.

 

Option 3

 

Continue support for Associate libraries. The current Co-delivery model would cease, with Co-delivered libraries becoming Associate libraries with a grant and lease (or tenancy agreement where a lease is not possible). 

 

The benefits of Option 3 are:

 

·         Simplified model, making clearer distinction between volunteer run libraries and Council run libraries.

·         Co-delivered libraries will not be vulnerable to any potential library service budget reductions in the future.

·         Lease/Tenancy and Grant agreements will provide a clearer framework for engaging with Co-delivered libraries and managing standards.

·         Operating as Associate libraries, rather than Co-delivered, should improve prospects of obtaining grant funding.

·         The Co-delivered libraries would get a grant on the same basis and level as the current Associate libraries.

 

The risks of Option 3 are:

 

·         Potential complications in offering lease or tenancy options. 

·         Staff time and cost in setting up tenancy or lease arrangements.

·         Some of the Co-delivered libraries may find paying running cost bills directly onerous, when they want to concentrate on running the library.

·         The Trustees/Management committees of the organisations running the co-delivered libraries may find the additional liability more onerous.

·         There would be additional cost to the Library service in making a grant available for the Co-delivered libraries.

 

Option 4 (Option Accepted)

 

Option 4 is continued support for Associate and Co-delivered libraries from 1st April 2017 to 31st March 2020. Future funding and support for years 4 and 5 will be delegated for decision by Cabinet Member and Executive Director.

 

The cost of this option from Council funds is £262k for year 1, for year 2 at least 80% of £262k and for year 3 at least 70% of £262k,subject to identifying the funding as part of the 2017-18 budget process. .  The costs of the Co-delivered libraries will be maintained from the core budget of the Library, Archive and Information Service.

 

Benefits and risks of the preferred option:

The benefits of this option are:

 

·         Create a period of financial stability and growth to attract and give confidence to volunteers and Trustees.

·         Extend the period of support whilst the Associate libraries develop their experience and capacity in managing a leased building.

·         Build the viability of the volunteer run libraries, enabling them to remain open.

·         Ensure the relationship between SCC and the volunteer run libraries is clearly defined

·         Ensure the standards and controls relating to the operation of the Council’s Library Management System by volunteer libraries are maintained.

 

The risks of this option are:

 

·         The Council continues to face significant financial challenges due to continued austerity measures.

·         If there is a budget reduction in future years for the LAIS, it may not be affordable for the service to continue to pay for all of the Co-delivered libraries from its core budget.

·         There would be an increased cost to the library service (whilst a support package is in place for Associate libraries) if Co-delivered libraries choose to become Associate libraries. 

 

 

 

9.5

Any Interest Declared or Dispensation Granted

 

 

 

None

 

 

9.6

Reason for Exemption if Public/Press Excluded During Consideration

 

 

 

None

 

 

9.7

Respective Director Responsible for Implementation

 

 

 

Laraine Manley, Executive Director, Communities

 

 

9.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

 

 

 

Safer and Stronger Communities

 

Minutes:

9.1

The Executive Director, Communities submitted a report in relation to future support arrangements for volunteer run libraries.

 

 

9.2

RESOLVED: That:-

 

 

 

(a)

Cabinet continue support for Associate libraries until 31st March 2020, to assist their viability and stability as follows - a support package to the value of £262k in year 1 that maintains the level of support provided from 2014-2017;  for year 2 the support package will not be less than 80% of £262k; and in year 3, not less than 70% of £262k, subject to identifying the funding as part of the 2017-18 budget process;

 

 

 

 

(b)

the support package to include a grant pot, a new book fund, a small marketing fund, and the operational costs of the Associate libraries remaining on the Library Management System; a breakdown of the support package is listed in the report in Section 1 ‘Proposal’;

 

 

 

 

(c)

continued support be provided for the Associate and Co-delivered libraries until 31st March 2020 where this can be resourced by the Library, Archives and Information Service (LAIS) with existing staff and core budget; this includes support from SCC run Hub libraries, advice and support with local and national initiatives, I.T support and training relating to the Library Management System;

 

 

 

 

(d)

continued support be provided for Co-delivered libraries to 31st March 2020; co-delivered libraries receive the same offer as SCC’s Hub libraries without the staffing and funded from LAIS core funding;  building running costs are paid directly by LAIS;  co-delivered libraries may be re-charged for running costs that are above the budget due to extended non-library usage of the building;

 

 

 

 

(e)

future funding and support for Associate and Co-delivered libraries for years 4 and 5 (2020/21 and 2021/22) will be delegated for decision by the Executive Director, Communities in consultation with the Cabinet Member for Community Services and Libraries; and

 

 

 

 

(f)

provision of the Library Management System, I.T., maintenance and related software, supplied via the corporate wide contract, will be free of charge until 2019, when this will be reviewed as part of corporate IT contract negotiations.

 

 

 

9.3

Reasons for Decision

 

 

9.3.1

The current arrangements for Associate and Co-delivered libraries are due to expire on 31st March 2017. 

 

 

9.3.2

Continued support will increase the likelihood of all the volunteer run libraries remaining open and vibrant into the medium and long term as they develop and grow in depth of experience and capability.

 

 

9.3.3

Continued support for Associate libraries will give added confidence to trustees and volunteers, at a point they are taking on-board lease responsibilities.

 

 

9.3.4

By supporting the volunteer run libraries to remain on the Library Management System, all SCC library members can access any library in Sheffield using a single, city-wide library card.

 

 

9.3.5

Continued support will provide a period of financial stability and growth that will attract more volunteers and trustees, and give them additional time to build capacity and develop external funding opportunities. 

 

 

9.3.6

The proposal will ensure the standards and controls relating to the operation of the Council’s Library Management System by volunteer libraries are maintained.

 

 

9.4

Alternatives Considered

 

 

9.4.1

The support arrangements for Associate and Co-delivered libraries are due to end as of 31st March 2017.  There were 4 possible options to consider, with Option 4 being recommended as the preferred option.  The benefits and risks of the preferred option can be found in the Proposal in section 1 of the report.  The other options considered and rejected are outlined below:

 

Option 1

 

LMS provision as agreed to 2019, but no further grant support for Associate libraries, and the cessation of Co-delivered libraries (who may become Associate libraries) as of 1st April 2017.  The provision of the LMS to be resourced through current corporate contracts and current library service staff and library budget.

 

Benefits of Option 1

 

·         The Council will not have to find the additional funding for the support package

·         Library groups can operate independently

·         The Co-delivered libraries are not yet generating sufficient income to meet the income earning target required to meet all the costs of running the library.  This option would mean the library service would not have to find the budget to meet this deficit, thus making a saving.

 

Risks of Option 1

 

·         The Associate libraries can stay on the LMS until 2019 but with limited support from the Library Service.  This could mean standards relating to the LMS may reduce, especially as training and technical support will be minimal. 

·         Van rounds delivering books would either cease or be very limited.  Therefore the length of time it would take for library users to receive a reserved book could significantly increase.

·         Some of the library groups may be unable to meet their financial obligations, leading to closure.

·         The instability of funding could mean volunteers are less willing to get involved and could lead to reduced library hours or library closure.

·         The Co-delivered libraries would be at greatest risk of closure as they may not have accumulated sufficient fundraising capacity to be sustainable as an Associate library.

 

Option 2

 

Continue the existing support arrangements for Co-delivered libraries, with the costs funded by the LAIS service budget for a further period.  The grant provision for Associate libraries would come to an end as of 31st March 2017, with LMS provision to 2019 as Option 1.

 

Benefits of this option 2

 

·         Enable 5 libraries that serve some of the most deprived communities in Sheffield to continue and have stability of service.

·         Financial independence of the Associate libraries may help grant applications.

 

Risks of this option

 

·         Some Associate libraries may not be able to meet their financial obligations, leading to them surrendering their lease and the library closing.

·         The instability of funding for the Associate Libraries may discourage volunteers from running and managing the libraries.

·         The reducing income generated from library fees and charges in the Co-delivered libraries may lead to budget reductions in other LAIS service areas, which may impact on the quality of service that can be delivered.

·         If there is a budget reduction in future years for the LAIS, it may not be affordable for the service to continue to pay for all of the Co-delivered libraries from its core budget.

 

Option 3

 

Continue support for Associate libraries. The current Co-delivery model would cease, with Co-delivered libraries becoming Associate libraries with a grant and lease (or tenancy agreement where a lease is not possible). 

 

The benefits of Option 3 are:

 

·         Simplified model, making clearer distinction between volunteer run libraries and Council run libraries.

·         Co-delivered libraries will not be vulnerable to any potential library service budget reductions in the future.

·         Lease/Tenancy and Grant agreements will provide a clearer framework for engaging with Co-delivered libraries and managing standards.

·         Operating as Associate libraries, rather than Co-delivered, should improve prospects of obtaining grant funding.

·         The Co-delivered libraries would get a grant on the same basis and level as the current Associate libraries.

 

The risks of Option 3 are:

 

·         Potential complications in offering lease or tenancy options. 

·         Staff time and cost in setting up tenancy or lease arrangements.

·         Some of the Co-delivered libraries may find paying running cost bills directly onerous, when they want to concentrate on running the library.

·         The Trustees/Management committees of the organisations running the co-delivered libraries may find the additional liability more onerous.

·         There would be additional cost to the Library service in making a grant available for the Co-delivered libraries.

 

Option 4 (Option Accepted)

 

Option 4 is continued support for Associate and Co-delivered libraries from 1st April 2017 to 31st March 2020. Future funding and support for years 4 and 5 will be delegated for decision by the Executive Director in consultation with the Cabinet Member.

 

The cost of this option from Council funds is £262k for year 1, for year 2 at least 80% of £262k and for year 3 at least 70% of £262k,subject to identifying the funding as part of the 2017-18 budget process. .  The costs of the Co-delivered libraries will be maintained from the core budget of the Library, Archive and Information Service.

 

Benefits of the preferred option:

 

·         Create a period of financial stability and growth to attract and give confidence to volunteers and Trustees.

·         Extend the period of support whilst the Associate libraries develop their experience and capacity in managing a leased building.

·         Build the viability of the volunteer run libraries, enabling them to remain open.

·         Ensure the relationship between SCC and the volunteer run libraries is clearly defined

·         Ensure the standards and controls relating to the operation of the Council’s Library Management System by volunteer libraries are maintained.

 

The risks of this option are:

 

·         The Council continues to face significant financial challenges due to continued austerity measures.

·         If there is a budget reduction in future years for the LAIS, it may not be affordable for the service to continue to pay for all of the Co-delivered libraries from its core budget.

·         There would be an increased cost to the library service (whilst a support package is in place for Associate libraries) if Co-delivered libraries choose to become Associate libraries. 

 

 

 

 

Supporting documents: