1. Presentation on Polling Results and Direction to Staff on November 2008 Ballot Measure July 7, 2008

2. Presentation Overview Review of June 2008 polling results Discussion of LEED Gold building standards and additional design costs Review of potential operating/maintenance costs Council discussion and action

3. Fairbank, Maslin, Maullin & Associates Opinion Research & Public Policy Analysis Santa Monica, CA – Oakland, CA – Madison, WI - Mexico City City of Palo Alto Library Bond Measure Refinement Survey 220-2544 June 2008

4. Slide 4 Palo Alto Library Bond Survey  600 telephone interviews with Palo Alto voters likely to cast ballots in the November 2008 general election  Interviews conducted between June 12- 23, 2008  Margin of sampling error of +/- 4.0%  Selected comparisons to results from February 2007 survey Methodology

5. Slide 5 Palo Alto Library Bond Survey  A solid majority of voters continue to view the City as an excellent place to live and feel the City is doing a good job of providing services to local residents.  A significant number of voters are concerned about the economy and the management of the City’s finances.  Voters use the City’s libraries regularly, and perceive them as having at least some need for improvements.  In this context, though the library bond has solid support from a majority of voters, it falls just short of receiving the required two-thirds supermajority.  While the measure can succeed, additional information about why this approach has been chosen to meet the libraries’ needs will be necessary to increase voters’ understanding. Key Findings

6. Slide 6 Palo Alto Library Bond Survey Issue Context and Mood of the Electorate

7. Slide 7 Palo Alto Library Bond Survey Total Excellent/ Good 93% Total Just Fair/Poor 7% Voters continue to have an overwhelmingly positive view of Palo Alto’s quality of life. 2. Generally speaking, how would you rate the City of Palo Alto as a place to live: is it an excellent place to live, a good place to live, only fair, or a poor place to live? February 2007 June 2008 Total Excellent/ Good 96% Total Just Fair/Poor 4%

8. Slide 8 Palo Alto Library Bond Survey Voters have mixed views of the economy. 9. I am going to read you a list of different aspects of life in Palo Alto. Please tell me if you expect that item to be better or worse twelve months from now. The local economy Your personal economic situation I am going to read you a list of different aspects of life in Palo Alto. Please tell me if you expect that item to be better or worse twelve months from now.

9. Slide 9 Palo Alto Library Bond Survey Total Excellent/ Good 72% Total Just Fair/Poor 26% Total Excellent/ Good 34% Total Just Fair/Poor 44% Voters like the City’s service delivery, but question its financial management. 10. How would you rate the overall job being done by Palo Alto city government in providing services to the City’s residents? 11. How would you rate the job being done by Palo Alto City officials in managing City funds? Providing City ServicesManaging City Funds

10. Slide 10 Palo Alto Library Bond Survey Most voters have visited the Main Library or Mitchell Park within the last year. 17. Which of the following Palo Alto public libraries have you visited within the past year? Which of the following Palo Alto public libraries have you visited in the past year?

11. Slide 11 Palo Alto Library Bond Survey Two-thirds of voters continue to see at least “some” need for additional library funding. 3. I am going to read a short list of public services in the city of Palo Alto. Please tell me if you think it has a great need for additional funding, some need, a little need or no real need for additional funding. Public libraries Public schools Public safety

12. Slide 12 Palo Alto Library Bond Survey Initial Support for a Library Bond Measure

13. Slide 13 Palo Alto Library Bond Survey Language Used to Test Bond Measure Support PALO ALTO LIBRARY IMPROVEMENT BOND. To complete improvements to all branch libraries in the City of Palo Alto by: replacing the existing Mitchell Park Library and community center; upgrading and expanding the Main Library; renovating the Downtown Library; expanding reading areas and facilities for children; and providing room for larger collections and improved information technology; shall the City of Palo Alto issue $75 million in general obligation bonds, subject to independent audits and citizen oversight?

14. Slide 14 Palo Alto Library Bond Survey TOTAL YES 63% TOTAL NO 25% Voters support the measure by a two-to-one margin, but it falls short of a two-thirds majority. 4. If the election were held today, would you vote yes in favor of this potential ballot measure or no to oppose it?

15. Slide 15 Palo Alto Library Bond Survey A general desire for library improvements underlies voter support. 5a. In a few words of your own, why would you vote YES on this ballot measure? (Open-ended; Top responses only; Asked only of “yes” voters) Facilities Improvements/Renovation (General)/More Comfortable Library General Positive/Like Library/Libraries Are Important City/Community Benefits/Libraries Are Backbone Of City Upgrade Library(s)/Long Overdue/More Modern Library(s) Education Benefits/Important Knowledge Resource Personally Use Library(s) Children Benefit/For The Kids Funding/Money/Support Is Needed Facilities Expansion/Larger Library/Relieve Overcrowding

16. Slide 16 Palo Alto Library Bond Survey “No” voters express concerns about the economy and the potential cost impact. 5b. In a few words of your own, why would you vote NO on this ballot measure? (Open-ended; Top responses only; Asked only of “no” voters) Cost/Too Expensive/Can't Afford/Poor Economic Conditions Combination Of Items Included/Not All Libraries Need Improvement Taxpayer/Bond/Public Funding/Usually Vote No On Bond Issues General Negative/Don't Care About/Other Issues Are More Important Facilities Improvements/Renovation/Library(s) Fine As Is Funding Not Needed/They Have Enough Money/Should Spend More Wisely Spending Concern/Don't Know Where Money Will Go

17. Slide 17 Palo Alto Library Bond Survey TOTAL YES 63% TOTAL NO 25% A lower-cost measure excluding improvements to the Downtown branch receives less support. 4. If the election were held today, would you vote yes in favor of this potential ballot measure or no to oppose it? 6. If that were the case, would you vote yes in favor of the bond measure or no to oppose it? $75 Million Bond $71 Million Bond without Downtown TOTAL YES 53% TOTAL NO 31%

18. Slide 18 Palo Alto Library Bond Survey TOTAL YES 58% TOTAL NO 32% Support drops slightly when voters hear the potential cost impact. 7/8. If that were the case, would you vote yes in favor of the bond measure or no to oppose it? $25 per $100,000 of Assessed Value $123 For Median Home TOTAL YES 58% TOTAL NO 33%

19. Slide 19 Palo Alto Library Bond Survey Ensuring that libraries meet earthquake safety standards stands out as a top priority. 12. I am going to read you a list of specific projects that could be funded by the library and community center bond measure. Please tell me how important it is to you that the project be funded: extremely important, very important, somewhat important, or not important. Split Sample (Ranked by Total Extremely/Very Important) Ensuring that all libraries meet standards for earthquake safety Providing a safe place for children and youth to go after school Expanding space for books and other items to accommodate a larger collection at the Library Providing updated facilities for after-school programs such as homework tutoring Improving access for disabled persons at the library and community center

20. Slide 20 Palo Alto Library Bond Survey Continued 12. I am going to read you a list of specific projects that could be funded by the library and community center bond measure. Please tell me how important it is to you that the project be funded: extremely important, very important, somewhat important, or not important. Split Sample Offering a dedicated children’s room at the Mitchell Park Library Upgrading and repairing the Main Library Providing dedicated quiet spaces for reading Replacing and expanding the Mitchell Park Library Building new facilities that meet federal and state standards for environmentally-friendly “green building”

21. Slide 21 Palo Alto Library Bond Survey Continued 12. I am going to read you a list of specific projects that could be funded by the library and community center bond measure. Please tell me how important it is to you that the project be funded: extremely important, very important, somewhat important, or not important. Split Sample Reducing duplication of facilities and allowing more efficient joint use of library and community center space Completing a series of improvements to all of Palo Alto’s branch libraries Expanding children’s reading areas in the library Providing air conditioning at libraries that currently do not have any Improving lighting in libraries to make it easier to locate and read books

22. Slide 22 Palo Alto Library Bond Survey Continued 12. I am going to read you a list of specific projects that could be funded by the library and community center bond measure. Please tell me how important it is to you that the project be funded: extremely important, very important, somewhat important, or not important. Split Sample Adding group study areas for students at the library Expanding the Main Library Offering more computers for public use at the Mitchell Park Library Preserving the historic character of the Main Library Upgrading and repairing the Downtown Library

23. Slide 23 Palo Alto Library Bond Survey Continued 12. I am going to read you a list of specific projects that could be funded by the library and community center bond measure. Please tell me how important it is to you that the project be funded: extremely important, very important, somewhat important, or not important. Split Sample Building a new Mitchell Park Library Building a new community center at Mitchell Park Library Building a new community center Building spaces for community events, programs and meetings

24. Slide 24 Palo Alto Library Bond Survey Messages highlighting current problems at the library offer the most compelling reasons to vote “yes.” 13. Here are some statements from people who support this potential library bond measure. Please tell me whether you find it very convincing, somewhat convincing, or not convincing as a reason to vote yes on the measure. *Split Sample (Ranked by Very Convincing) 80% 79% 75% *Over 2,500 people visit Palo Alto libraries daily. There is increasing demand for Wi-Fi and internet services, and library use overall increased ten percent last year. The Mitchell Park Library was built 50 years ago, and is simply too small to meet today’s needs. Palo Alto libraries have limited space for collections, poor lighting, and need upgrades for earthquake safety or disabled access. This bond measure will address these vital needs. *Increasing the space and capacity of the Main, Mitchell Park and Downtown Libraries will increase library collections available throughout the entire library system. *The library improvements and building upgrades in this measure have been well planned. The Mitchell Park Library will have temporary services in the area during the rebuilding process and the new Mitchell Park Library will not affect existing dedicated parkland. Likewise, renovations and improvements to the Main Library will preserve the historic character of the existing building. 72%

25. Slide 25 Palo Alto Library Bond Survey Continued 70% 73% 71% 71% 68% This measure has tough accountability provisions including, mandatory independent audits, a citizens’ fiscal oversight committee and no money for administrators’ salaries. This measure will make it possible to offer Palo Alto children and teens more safe after-school activities, including tutoring and educational programs. *This bond proposal was carefully reviewed by Palo Alto citizens on the Library Advisory Commission, and citizens in the construction industry say it is the most efficient, cost-effective way to meet the City’s future library needs. *More than one-third of the cost of repaying the bonds authorized by this measure will be paid by businesses, reducing the impact on Palo Alto homeowners. Over the past ten years, the City has been steadily making improvements to all of Palo Alto’s library branches. This bond measure will fund improvements at the last three branches and complete improvements to the library system. 13. Here are some statements from people who support this potential library bond measure. Please tell me whether you find it very convincing, somewhat convincing, or not convincing as a reason to vote yes on the measure. *Split Sample

26. Slide 26 Palo Alto Library Bond Survey TOTAL YES 63% TOTAL NO 25% Support falls just short of two-thirds after the messages. Initial Vote Vote After Positive Arguments TOTAL YES 66% TOTAL NO 27% 4. If the election were held today, would you vote yes in favor of this potential ballot measure or no to oppose it? 14. Would you vote yes in favor or no to oppose the $75 million bond measure to fund improvements to Palo Alto libraries, including Mitchell Park, Main, and Downtown?

27. Slide 27 Palo Alto Library Bond Survey Negative messages are less compelling, but several resonate with voters. 15. Here are some statements from people who oppose this library bond measure. Please tell me whether you find it very convincing, somewhat convincing, or not convincing as a reason to vote no on the measure. *Split Sample (Ranked by Very Convincing) 58% 57% 53% *We should focus our resources on one or two full-service libraries instead of spending money to upgrade 5 different libraries. *There are much higher priorities for our tax dollars than improving libraries – like schools, streets and public safety. With our economy moving into a recession, we simply cannot afford a major tax increase for Palo Alto families that are already struggling to make ends meet.

28. Slide 28 Palo Alto Library Bond Survey Continued 51% 40% 45% *We just passed a school bond to help local kids, and now the City is asking us to approve more borrowing. We cannot trust City government to spend the funds from this bond measure properly. *Nearly all the money from this bond measure will be used to rebuild Mitchell Park Library. Most local residents use other branches that will not benefit as much from this bond measure. 15. Here are some statements from people who oppose this library bond measure. Please tell me whether you find it very convincing, somewhat convincing, or not convincing as a reason to vote no on the measure. *Split Sample

29. Slide 29 Palo Alto Library Bond Survey Overall, the messages have little impact on support. 4. If the election were held today, would you vote yes in favor of this potential ballot measure or no to oppose it? 14/16. Would you vote yes in favor or no to oppose the $75 million bond measure to fund improvements to Palo Alto libraries, including Mitchell Park, Main, and Downtown?

30. Slide 30 Palo Alto Library Bond Survey  Voters continue to use Palo Alto libraries regularly and value them highly; at the same time, they do not view the libraries’ needs as particularly urgent.  There is a broad and solid base of support for a library bond.  However, roughly one-third of voters remain resistant to supporting such a measure.  The community will need additional information about the urgency of the library’s needs – and how a bond measure would be structured to address them – before two-thirds of local voters are likely to cast a vote in favor of such a measure. Conclusions

31. Project Design Costs and LEED Gold Building Standards

32. COSTS – FEB 2008COSTS – MAY 2008 Construction Cost$ 39.5M Project Development Cost (design 11-15%, permits, testing, CM, etc.) $11.4M$9.0M Contingency Design Contingency-10% Construction Contingency-10% $ 3.9M Escalation Cost (for 2-4 years, 8% / yr)$ 16.3M$ 15.3M Equipment and Technology$ 4.3M Temporary Facilities (allowance)$0.6M Total Escalated Project Cost$ 80M$ 77M LEED Gold (14-year payback period)$ 1.2 M (4.3%)$ 1.3 M (4.6%) The above does not include financing costs Libraries (Mitchell, Main, and Downtown) & Community Center Cost Update: May 2008

33. MITCHELL PARK LIBRARY & CC MAIN LIBRARY DOWNTOWN LIBRARY Construction Cost$ 28.1M$ 9.0M$ 2.4M Project Development Cost (design, permits, testing, CM, etc.) $ 6.2M$ 2.3M$ 0.5M Contingency Design Contingency-10% Construction Contingency-10% $ 2.8M $ 0.9M $ 0.2M Escalation Cost (8% per yr) $ 9.6M (3 years) $5.2M (4 years) $ 0.5M (2 years) Equipment and Technology$ 2.6M$ 1.4M$ 0.3M Temporary Facilities (allowance)$0.6M Total Escalated Project Cost$ 52.7M$ 19.7M$ 4.1M Eligible for GO bonds Non-eligible for GO bonds $49.5M $3.2M $18.3M $1.4M $3.8M $0.3M The above does not include financing costs

34. LEED Gold items (incremental cost increase over LEED Silver) HVAC System Upgrade Night Sky Radiant Cooling Solar Domestic Hot Water System Construction subtotal Development costs & contingencies Escalation (8% for 3 years) Total (rounded) Annual Maintenance Costs Payback on incremental improvements $660 $95 $45 $800 $280 $220 $1,300 $42 14 years Dollar amounts given in thousands

35. Potential Operating and Maintenance Costs for Library/Community Center Facilities

36. Components of Operating/Maintenance Costs Custodial/maintenance costs Utility costs Library collection maintenance Furniture and computer replacement Additional library, community center and facility maintenance staffing (up to 5 full time positions) The estimated annual cost for these items could range between $750,000 - $1.1 million pending further evaluation and analysis.

37. Council Action This Evening 1) Should the City proceed with a library/community center bond measure on the November 2008 ballot? If so, should the bond measure include all 3 elements discussed previously (Mitchell Park library/community center, Main and Downtown libraries)? 2) Should the City pursue LEED Gold building standards for the new Mitchell Park library/ community center? 3) Should the City include design costs spent to date ($1.5 million) on the library/community center projects in the bond measure?

38. Council Questions/Public Comment