AGENDA ITEM: 9

Meeting Date Subject Report of Summary Cabinet 20 February 2012

Page nos. 396 408

Community Library Process Cabinet Member for Customer Access and Partnerships This report provides an update on the process for inviting and assessing proposals from the community to operate community libraries in the Hampstead Garden Suburb and Friern Barnet areas.

Officer Contributors

Bill Murphy AD Customer Services Lauren Doody, Head of Customer Services, Libraries and Local Studies Mike Fahey, Divisional Manager, Library Service Public All 1. Appendix 1 Invitation for expression of interest 2. Appendix 2 - Summary of Proposals Cabinet Executive N/A

Status (public or exempt) Wards affected Enclosures

For decision by Function of Reason for urgency / exemption from call-in

Contact for further information: Lauren Doody (lauren.doody@barnet.gov.uk. Tel: 0208 359 7009) or Mike Fahey (mike.fahey@barnet.gov.uk) Tel: 0208 3593164.

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1. 1.1 1.2 1.3

RECOMMENDATIONS That Cabinet note progress to date Cabinet reaffirms its decision to transfer services from Friern Barnet and North Finchley Libraries to a new Landmark Library based at the Arts Depot The council enter into formal negotiations with Hampstead Gardens Suburb Residents Association to agree a mutually agreeable arrangement for a community library in the existing building.

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2.4 2.5

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2.7

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RELEVANT PREVIOUS DECISIONS Cabinet 12th June 2006 item 6: Approval of the Customer Access Strategy, outlining the authoritys strategy for improving its approach to customer service through the effective use of integrated access channels. Cabinet 26 July 2007 item 8: Approved the library strategy, including the creation of a network of leading libraries, a capital programme to refurbish leading libraries, use of customer self-service technology, and integration with accommodation and customer services strategies. General Functions Committee 8 December 2008 item 14: Approval for a revised staff structure for the library service that will support the implementation of the Library Strategy, increase the services responsiveness to communities and individual customers, and enable a balanced budget to be achieved. DPR 764 - Delivering the Library Strategy: Outlines how the Library Strategy will be delivered, and further service improvements made. Cabinet 6 July 2009 item 5: Agreement that three principles would be adopted as the strategic basis for making future decisions (a new relationship with citizens, a one public sector approach and a relentless drive for efficiency) and a phased approach to delivering the Future Shape Programme. Cabinet 24 October 2009 item 8: Approved plans to implement the Future Shape Programme, including the development of a new relationship with citizens, and development of plans for a Customer Services Organisation. Cabinet 6 September 2010 item 9: Agreement for a strategic library review project, to identify and meet local needs, identify options to modernise the service, provide a sustainable foundation for coming years, and provide better services for less money. The aspiration for the review was to identify options to improve service provision, meet local needs and reduce cost. Cabinet 26 July 2011 item 6: Approval of Strategic Library Review as described in 2.7 above. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS The Councils Corporate Plan 2010 2013 sets out how the authority will respond to the challenges facing Barnet over coming years. The community library process will support the approved Library Strategy by making a significant contribution to deliver the following corporate priorities and strategic objectives. Better Services with Less Money: The community library process is aligned with the strategic objectives to: make sure we get best value from resources across the public sector, including our people and assets maximise improvements and savings in back office functions Sharing Opportunities and Sharing Responsibilities: The community library process aims to develop a new relationship with citizens by providing partnership opportunities for local communities to develop and deliver service offerings relevant to their local communities sessions.

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The Corporate Plan (2010 2013) sets out a range of principles for how Barnet will operate: a one-public-sector approach; a new relationship with citizens; and a relentless drive for efficiency. The community library process aims to support these principles, by establishing a partnership with local people to provide additional services complimentary to the published Strategic Library Review.

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RISK MANAGEMENT ISSUES There are a number of potential risks associated with the community library process, which are outlined below along with measures to mitigate the risks identified. The Strategic Library Review references a proposed move of stock from Hampstead Garden Suburb library to the Hampstead Institute in order to provide community library provision in the area. This option is no longer available. There is a small risk of challenge of breach of statutory duty under the Public Libraries and Museums Act 1964, if a community proposal in the Hampstead Garden Suburb area does not succeed and no alternative method of service delivery in the area is found. This risk can in part be mitigated by continued investigation of alternative community provision, including but not limited to other sites in the locale, mobile library stops and Home Delivery service. Delay to the process does now challenge the potential to announce and achieve the removal of funding from either library by the end of March 2012 and the knock on effect this will have on the Library Service's savings commitments in the 2012/13 budget. This risk can in part be mitigated by a clear transfer of responsibilities plan outlining the steps to be taken to transfer to successful proposers. There is a potential risk to the councils reputation if proposals are accepted that lead to council support of services that are not valued by the community. This risk can in part be mitigated by a careful and thorough evaluation process and an ongoing monitoring and audit process of services provided by community libraries.

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5. 5.1

EQUALITIES AND DIVERSITY ISSUES The Community Library Process is an augmentation of the Strategic Library Review, previously agreed by Cabinet. This paper references the Equalities Impact Assessment presented with the Strategic Library Review.

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USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance & Value for Money, Staffing, IT, Property, Sustainability) Finance: The community library process is a key enabler to delivering savings from the Library Strategy (1,055,000 over the next 3 years). Additional grant funding may be required to support successful community library proposals and community groups may request direct or in kind support. The expected grant funding (from the Libraries budget) is expected to be capped at 10k per annum. Procurement: The community library process has been assessed as not being a procurement exercise Performance & Value for Money: Delivery of the community library process is intended to reduce the cost per library visit, reduce operational costs, maintain the number of visits to libraries, increase book issues, and increase the use of libraries by key groups (e.g. local residents).

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Staffing: All staff and Unions have been consulted on the proposals of the Strategic Library Review. There are no redundancy implications as a result of these proposals as the five posts identified for deletion through the Medium Term Financial Strategy in April 2012 can be managed within through vacancies. The impacted staff are on generic contracts and will be relocated to existing libraries.

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The community library process has potential implications for staffing in that requirement for support services could continue, dependent on the outcome and the form of proposals accepted. IT: The community library process has short term implications for IT in that some support will be required to set-up the new stand-lone libraries management software and ensure that the existing hard-ware is appropriately configured for community use. Property and sustainability: The overall libraries strategy is predicated on assumptions about the reconfiguration and disposal of some assets to fund the creation of a new landmark library in North Finchley. LEGAL ISSUES Pursuant to the Public Libraries and Museums Act (1964), (PLMA) library authorities are under a duty to provide a comprehensive and efficient library service for all persons desiring to make use of such a service. In order to fulfil this duty the council has to make a reasonable assessment of the needs which the library service should meet. Cabinet made the decision in July 2011 with this duty in mind having given detailed consideration to the needs of service users (essentially those who live, work and study in the borough including different groups in the community such as disabled persons and others affected by the equalities legislation and children). Consideration was also given to what impact the proposals might have on different groups in the community and mitigating factors put in train accordingly. The community library process is viewed as a complimentary process to the strategic library review. Members must of course be mindful of these continuing duties and the need to keep under review the impact on protected groups. Detailed consideration must be given to each of the proposals put forward and cogent reasons must be given in reaching a decision.

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8. 8.1

CONSTITUTIONAL POWERS Constitution Part 3, Responsibility for Functions Section 3, Responsibilities of the Executive BACKGROUND INFORMATION

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9.1 On 26th July 2011, Cabinet approved the boroughs new Library Strategy, part of which allowed for the merging and remodelling of library services in North Finchley and Friern Barnet into a Landmark Library in the Arts Depot and the withdrawal of funding from Hampstead Garden Suburb library. In addition, the council agreed that proposals could be made by the community to run community library services in either or both the Friern Barnet and Hampstead Garden Suburb areas. It should be noted that no such undertaking was given for North Finchley library due to the close proximity of the existing site with the new Landmark Library in central Finchley.

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9.2 Recommendation 1.6 set out for the library service to: Proceed to implement the strategy as set out in the report subject to the consideration of the feasibility of any community initiatives that come forward from residents on or before 31 October 2011. In addition, comments from Cllr Rams during the Cabinet debate and public questions confirmed that: Community initiatives should be at no cost to the council or low cost There is no commitment that the proposed community initiative should be based in the current site Proposals may indicate alternative funding streams, depending on the scope of the bid Changes to libraries are deferred until after 31 October 2011, so that proposals can be developed and reviewed

Progress since November 2011 9.3 There was a workshop with three of the four interested potential providers on 16th December 2011 where they were able to ask questions and discuss what would and would not be acceptable to the council. The workshop was run by the Libraries management team and covered areas of stock selection, management considerations, health and safety, estate considerations, customer relations, structuring of proposals and much more. Attendees were given a copy of the slides and a handout on stock management (these items also supplied by email to the non-attending group). Groups in attendance were: Hampstead Garden Suburb Residents Association Save Friern Barnet Library Group Eco Computers

9.4 Feedback provided was good, with representatives indicating they had learned a great deal about the unseen side of library operation that they could then use to improve their proposals. The Eco representative was also able to provide further information to the workshop on the practical experience of running community libraries in Lewisham. Representatives exchanged contact information. 9.5 Potential providers were asked to submit proposals to the council by 10th January 2012. Three formal proposals were received by this date: Two proposals to provide community library facilities in the HGS area from the HGS Residents Association and the Friends of HGS library One proposal from the Save Friern Barnet Library residents group.

9.6 These proposals have now been assessed and discussions are taking place with the potential providers. The following recommendations result from the assessment process. Friends of Hampstead Garden Suburb Library

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This proposal, whilst showing a range of innovative ideas and an enthusiasm for saving the council money, lacks structure and the necessary evidence of governance within the group and support from within the community that would enable the council to enter into an agreement to provide this group with council funds and the control of publicly owned assets. The recommendation is, therefore, that this is not a viable proposal.

Hampstead Garden Suburb Residents Association 9.8 This proposal, as currently constituted, does not deliver the necessary savings. However, it does come from an established group with a membership of over 2,000 local people and provides a basis for a sustainable long term community based service. The council has met with the group and is optimistic that a formal agreement can be reached which is affordable. As part of this agreement the council will continue to pay rent and business rates on the building as this is an on-going cost in any event until such time as a break clause can be negotiated. The recommendation is to continue dialogue with this group, giving their proposal preferred status, with the aims of reducing the proposals reliance on the councils infrastructure and funding. The council will support the group to apply for additional grants from other sources. If this is successful, the council will seek to establish a formal agreement between with the group so they can proceed to the operation of a transitional library service in the Hampstead Garden Suburb area by 1/4/12.

9.9

Save Friern Barnet Library Group 9.10 The groups proposal, whilst showing evidence of local support, advocates what amounts to a continuation of the existing service with volunteer support. The cost of the project to the council in year one must, then, be assessed as requiring the full council budgetary exposure of 124,351.88 (from 2009/10 out turn), plus the lost opportunity cost of the buildings market rental of between 18,500 and 37,000 per annum (dependent on use, new valuation to be commissioned). The recommended action is, therefore, to confirm that the existing library will cease operation on 31/3/12 and preparatory work undertaken to transfer the service into the new Landmark Library to be created in the Arts Depot in North Finchley. Officers met with representative of the Save Friern Barnet Library Group on 8/2/2012 to explain the councils position in relation to the unaffordable nature of their proposal and that the Library will move to the Arts Depot. In relation to the possibly of a community library in the area, discussions are still on-going. A further verbal update may be provided at the meeting if required.

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Finance: MC/JH Legal: HP/CH

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Appendix 1: Invitation for expressions of interest in community library service provision in London Borough of Barnet [Please note that these dates have been updated with the timescales as set out in section 10.3.] Sections 1. 2. 3. 4. 5. 6. 7. 8. Introduction Who can apply Factors to consider when making a proposal How Proposals will be assessed The Timescale for the process How to make an expression of interest How to submit a proposal FAQ

Introduction

Due to cuts in central government funding Barnet Council needs to make changes to the shape of library services in the borough. The Strategic Library Review proposed the merging and remodelling of library services in North Finchley and Friern Barnet into a Landmark Library and the withdrawal of funding from Hampstead Garden Suburb library. The council agreed that proposals could be made by the community to run community library services in either or both the Friern Barnet and Hampstead Garden Suburb areas. The Council is seeking expressions of interest from local groups and organisations interested in providing an independent community library service at low or no cost to the Council in either Hampstead Garden Suburb or the Friern Barnet areas. 2 Who can make an expression of interest?

The process is open to organisations that can demonstrate they meet the following criteria. These are necessary in order that the Council can meet its legal duties to ensure public money is spent appropriately. To apply, your organisation must have the following: a constitution or governing document its own bank account with a minimum of two signatories at least three members on a management committee, board of trustees or equivalent annual accounts which are less than one year old (not applicable for organisations under 2 years old). a local focus OR a sponsoring organisation that has all the above You cannot apply if you are: a statutory organisation applying on behalf of another organisation Partnership working The Council will consider expressions of interest made in partnership.

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Factors to consider when making a proposal

Following the receipt of expressions of interest, the Council will call on interested groups that match the above criteria to make their proposals. A feasible community initiative is likely to cover some of the following areas: Organisational capacity and sustainability: what is your organisation and what do you do? Proposals for the service: what service do you want to provide and to whom? How will you go about providing it? Ambition and future plans: where will your organisation and the service you intend to provide be after 3, 5 and 10 years? How Proposals will be assessed

Proposals will be assessed by council officers and a recommendation made for decision by Councillors. Officers will assess business plans against three key areas: a) Financial, organisational and property considerations the proposal can be delivered at no cost or low cost to the council a workable financial plan and realistic budget clarity on where services are proposed to be provided from and how they will be provided by the community group b) Strategic and community considerations indications that the proposal is supported locally evidence that the facility or services reflects local community needs. c) Services and sustainability the services to be provided and the ongoing benefits that will be delivered a proposal that is realistic in what it proposes to deliver, adequately resourced and with recognition of potential risks, challenges, and identifying some success factors for the proposed services a forward plan

Timescale for the process

The timescale for this process is as follows: Expressions of interest to be invited in week beginning 21/11/11 Expressions of interest to be returned by 5pm on 2/12/11 Evaluation of expressions of interest and invitations to make proposals issued by 5pm 6/12/11 Information packs and invitations to information workshops to be issued to the invited organisations by 5pm 12/12/11 Deadline for proposals to be submitted to the Council - by midnight 8/1/12 Assessment of proposals and dialogue with proposers to take place between 9/1/12 and 22/1/12 Council officers will produce a proposal to be submitted to Cabinet Resources Committee on 28 February for full consideration, leading to development of handover arrangements. Working with successful organisations to finalise leases and transitional support arrangements: January to March 2012 Handover to new arrangements: from 2 April 2012

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Final criteria and guidance for expressions of interest will be published at (website address) on 3 October. 6 How to make an expression of interest

From 3 October, an About Your Organisation form will be available at (website address) or by request from: Mr M Fahey Libraries and Heritage Building 4 North London Business Park Oakleigh Road South London N11 1NP This should be returned to the address above by 5pm on 14 October 2011

How to submit a proposal

Following issue of invitations to make proposals, organisations will be invited to attend an Information Workshop and given background information and a format for their proposal return broken into sections a-c above saying what each should include and giving a maximum length. Proposals and supporting documents should then be returned to the address above by 5pm on 18 November 2011

Frequently Asked Questions

Can we use the current building? Possibly. It depends on the nature of your proposal. The Council needs to make savings and so use of the current building would have to be at low or no cost to the Council. Would a community library have to be in the existing library building? No, not necessarily. You may have an idea for an alternative venue such as a community building or a shared space. Wherever it is, the building must be safe, accessible to all members of the community and suitable for use as public premises. What rent will the Council charge for use of the library building? Barnet Council sets the level of rent related to any leases which it issues by carrying out a valuation process. The valuation takes into consideration a number of factors such as market rental values and what the future use of a space will be. We do not have an up to date rental valuation for the library buildings in question but this is something that we will look to carry out as part of discussions with organisations that express an interest in future use of buildings. Will there be rent and business rate relief available for the buildings? The Council has existing policies on rent relief and discretionary rate relief. These can be found on the Councils website by visiting http://www.barnet.gov.uk/business-ratesreductions-relief The Council can only assess whether an organisation is eligible for rent or discretionary rate relief based on an organisations situation at the time of application. Consideration of rent or discretionary rate relief would take place once an organisation has come forward with an

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expression of interest, as it depends on the type of activity they propose to carry out. The Council will assess applications for rent and discretionary rate relief to see if they meet existing criteria for this kind of support. What will be the relationship with Barnet Library Service in the future? Under the proposals agreed by Cabinet, the two libraries in question will cease to be public libraries. This means that they will no longer be part of the Barnet public library network. What items within the library would remain for the community to use? The Council will consider gifting existing library stock, furniture and IT hardware if this would be useful for the agreed future use of the building. This only applies to existing library stock and equipment. Can we bid for any annual funding? It is possible that the Council would consider providing a successful community library with a small annual grant to purchase stock. Can we bid for any one-off funding? The Council is unlikely to be able to provide one-off funding but will be glad to work with community groups to help identify opportunities for funding. Why do you have to go through this process? The Council is accountable for the spending of public money and the use of public resources. We must be satisfied that we have given due, fair and proper consideration to all proposals. What will the Workshops cover? We are running workshops for organisations interested in finding out more about what is on offer and how to make a proposal. The workshops will cover: background information on the libraries and the library service guidance on what information should be included in proposals details of what the Council could offer to successful organisations Can I get information on how the libraries currently run and what they cost? A full information pack will be made available at the workshops and will be available by request. This will include information on library performance and use, the buildings, the running costs and the stock.

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Appendix 2: Summary of proposals made to operate community library service provision in London Borough of Barnet

Friends of Hampstead Garden Suburb Library Overview The Friends of Hampstead Garden Suburb Library proposal is for a service in the existing library building. It requires the council to continue to pay the lease and annual running costs until at least October 2013, after which it is suggested the new community library might become self-financing through fund-raising activity. Existing council systems and infrastructure would not be required. The proposal is for core library activities to continue to be provided along with an extended palette of community activities, to be run by volunteers under the direction of remunerated staff (to be funded by the groups income-generation). Activities The group propose an offering that expands the use of the library into a small community hub. Existing book, DVD and CD lending services would be retained but the premises would be stripped out, redecorated and reinstated without a counter and with a more flexible space utilising a smaller lending and reference stock. Stock loan Reservations Activities for children Activities for adults Meeting space for community groups Work experience A community information space Partnership activities to be run in other sites Services The library will offer wi-fi, public access computers and printing services. Group The group is a new, unconstituted organisation. No evidence has been presented of membership, entity or support from other organisations. The proposal names 3 individuals but does not indicate their standing within the group. Operations would be carried out with paid staff to be provided for by the groups fund-raising activity, supported by volunteer staff. Funding The proposal requires the council to pay all operating costs for the first 18 months of operation, together with a grant to service purchase of stock and to provide operating capital. Thereafter, the groups fund-raising activity would seek to reduce the level of council support needed for the building and utilities, possibly to nil. There is no structured financial plan shown for either expenditure or income.

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Hampstead Garden Suburb Residents Association Overview The HGSRA proposal is for a service in the existing library building. It requires the council to continue to provide and run a library service within the existing building, utilising existing council infrastructure, equipment and systems and covering all running costs until the break in the lease at 2016. The proposal seeks to continue the existing library service offer but with a more localised focus and with an income generation programme aimed at reducing cost to the council over time. The group is able to demonstrate a strong backing of established volunteer membership and organisation. Activities The group propose an offering that continues the existing use of the library with some small expansion of activities. Existing book, DVD and CD lending services would be retained with additional wi-fi facilities and a partnership with Barnet Library Service to offer extension activities such as Barnet Book Club boxes via the site. Stock loan Reservations Activities for children Activities for adults Services The library will offer Wi fi, public access computers and printing services. Group The group is an established, constituted organisation with a management committee, accounts and governance arrangements. The membership is extensive and active. Operations would be carried out using the organisations existing volunteer staff and a new cadre of library-specific volunteers to be recruited via an advertising scheme (already commenced). Funding There is a structured financial plan. The proposal requires the council to pay all building operating costs at least until the break clause in September 2016. During this time, the groups fund-raising activity would be developed and would seek to reduce the level of council support needed, possibly to nil. Additionally, the proposal requires the council to continue purchase and supply of stock into the site, and for the continuing provision at council cost of the library management system and infrastructure, computer equipment, furniture, fittings, x% of professional librarian support time and all associated support and management services.

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Save Friern Barnet Library Group Overview The SFBL proposal is for a service in the existing library building. It requires the council to continue to provide and run a library service within the existing building, utilising existing council infrastructure, equipment and systems and covering all running costs. The proposal is not particularly clear but suggests that council staff would continue to be required on site, with SFBL volunteers providing support to run core library activities in a pattern of reduced opening hours, with the building space let for other fund-raising activities in closed time. Some community use would be made of the space with endeavour to expand the range of community and fund-raising activities, again using volunteer input. Activities The group propose an offering that continues the existing use of the library with some expansion of activities into a community hub by offering the building for use by complimentary, partner and paying organisations. Existing book, DVD and CD lending services would be retained. Stock loan Reservations Activities for children Activities for adults Meeting space for community groups Services The library will offer ICT training, public access computers and printing services. Group The group is a recently-established, constituted organisation with a management committee and bank account. The membership base is unknown but appears to be active. Volunteer staff would be recruited to match specific operational needs to support existing library activity and to provide new community activity. Funding There is an incomplete financial plan. The proposal requires the council to pay all building operating costs, to supply and manage library stock, computer equipment, furniture, fittings, support and infrastructure costs, an unspecified level of staffing and to provide all current associated support and management services. The group would develop fund-raising activity that would seek to reduce the level of council expenditure needed.

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