The LA Weeklyn ran a story about Villarraigosa 
shutting the LA library system several days and 
evenings and laying off staff. Here's the next 
step -- as reported by the NY Times. Where is 
Pacifica on covering this trend? (Forget the LA 
Times, which is moving its book fair from UCLA -- quasi-"public" -- to USC).

September 26, 2010
Anger as a Private Company Takes Over Libraries
By DAVID STREITFELD

SANTA CLARITA, Calif. — A private company in 
Maryland has taken over public libraries in 
ailing cities in California, Oregon, Tennessee 
and Texas, growing into the country’s fifth-largest library system.

Now the company, Library Systems & Services, has 
been hired for the first time to run a system in 
a relatively healthy city, setting off an intense 
and often acrimonious debate about the role of 
outsourcing in a ravaged economy.

A $4 million deal to run the three libraries here 
is a chance for the company to demonstrate that a 
dose of private management can be good for 
communities, whatever their financial situation. 
But in an era when outsourcing is most often an 
act of budget desperation — with janitors, police 
forces and even entire city halls farmed out in 
one town or another — the contract in Santa 
Clarita has touched a deep nerve and begun a round of second-guessing.

Can a municipal service like a library hold so 
central a place that it should be entrusted to a 
profit-driven contractor only as a last resort — and maybe not even then?

“There’s this American flag, apple pie thing 
about libraries,” said Frank A. Pezzanite, the 
outsourcing company’s chief executive. He has 
pledged to save $1 million a year in Santa 
Clarita, mainly by cutting overhead and replacing 
unionized employees. “Somehow they have been put 
in the category of a sacred organization.”

The company, known as L.S.S.I., runs 14 library 
systems operating 63 locations. Its basic pitch 
to cities is that it fixes broken libraries — 
more often than not by cleaning house.

“A lot of libraries are atrocious,” Mr. Pezzanite 
said. “Their policies are all about job security. 
That’s why the profession is nervous about us. 
You can go to a library for 35 years and never 
have to do anything and then have your 
retirement. We’re not running our company that 
way. You come to us, you’re going to have to work.”

The members of the Santa Clarita City Council who 
voted to hire L.S.S.I. acknowledge there was no 
immediate threat to the libraries. The council 
members say they want to ensure the libraries’ 
long-term survival in a state with increasingly shaky finances.

Until now, the three branch locations have been 
part of the Los Angeles County library system. 
Under the new contract, the branches will be 
withdrawn from county control and all operations 
— including hiring staff and buying books — ceded to L.S.S.I.

“The libraries are still going to be public 
libraries,” said the mayor pro tem, Marsha 
McLean. “When people say we’re privatizing 
libraries, that is just not a true statement, period.”

Library employees are furious about the contract. 
But the reaction has been mostly led by patrons 
who say they cannot imagine Santa Clarita with libraries run for profit.

“A library is the heart of the community,” said 
one opponent, Jane Hanson. “I’m in favor of 
private enterprise, but I can’t feel comfortable 
with what the city is doing here.”

Mrs. Hanson and her husband, Tom, go to their 
local branch every week or two to pick up tapes 
for the car and books to read after dinner. Mrs. 
Hanson recently checked out Willa Cather’s 
classic “Death Comes for the Archbishop,” 
although she was only mildly in favor of its 
episodic style; she has higher hopes for her 
current choice, on the shadowy world of North Korea.

The suggestion that a library is different — and 
somehow off limits to the outsourcing fever — has 
been echoed wherever L.S.S.I. has gone. The head 
of the county library system, Margaret Donnellan 
Todd, says L.S.S.I. is viewed as an unwelcome outsider.

“There is no local connection,” she said. “People 
are receiving superb service in Santa Clarita. I 
challenge that L.S.S.I. will be able to do much better.”

As a recent afternoon shaded into evening, there 
were more than a hundred patrons at the main 
Santa Clarita library. Students were doing their 
homework. Old men paged through newspapers. 
Children gathered up arm’s loads of picture 
books. It was a portrait of civic harmony and engagement.

Mrs. Hanson, who is 81 and has been a library 
patron for nearly 50 years, was so bothered by 
the outsourcing contract that she became involved 
in local politics for the first time since 1969, 
when she worked for a recall movement related to the Vietnam War.

She drew up a petition warning that the L.S.S.I. 
contract would result in “greater cost, fewer 
books and less access,” with “no benefit to the 
citizens.” Using a card table in front of the 
main library branch, she gathered 1,200 signatures in three weekends.

L.S.S.I. says none of Mrs. Hanson’s fears are 
warranted, but the anti-outsourcing forces 
continue to air their suspicions at private 
meetings and public forums, even wondering 
whether a recall election is feasible.

“Public libraries invoke images of our freedom to 
learn, a cornerstone of our democracy,” Deanna 
Hanashiro, a retired teacher, said at the most recent city council meeting.

Frank Ferry, a Santa Clarita councilman, 
dismisses the criticism as the work of the 
Service Employees International Union, which has 
87 members in the libraries. The union has been 
distributing red shirts defending the status quo. 
“Union members out in red shirts in defense of union jobs,” Mr. Ferry said.

Library employees are often the most resistant to 
his company, said Mr. Pezzanite, a co-founder of 
L.S.S.I. — and, he suggested, for reasons that 
only reinforce the need for a new approach.

“Pensions crushed General Motors, and it is 
crushing the governments in California,” he said. 
While the company says it rehires many of the 
municipal librarians, they must be content with a 
401(k) retirement fund and no pension.

L.S.S.I. got its start 30 years ago developing 
software for government use, then expanded into 
running libraries for federal agencies. In the 
mid-1990s, it moved into the municipal library 
market, and now, when ranked by number of 
branches, it places immediately after Los Angeles 
County, New York City, Chicago and the City of Los Angeles.

The company is majority owned by Islington 
Capital Partners, a private equity firm in 
Boston, and has about $35 million in annual 
revenue and 800 employees. Officials would not 
discuss the company’s profitability.

Some L.S.S.I. customers have ended their 
contracts, while in other places, opposition has 
faded with time. In Redding, Calif., Jim 
Ceragioli, a board member of the Friends of 
Shasta County Library, said he initially counted himself among the skeptics.

But he has since changed his mind. “I can’t think 
of anything that’s been lost,” Mr. Ceragioli said.

The library in Redding has expanded its services 
and hours. And the volunteers are still showing 
up — even if their assistance is now aiding a 
private company. “We volunteer more than ever now,” Mr. Ceragioli said.



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