They have. But it doesn't look good. from supporting materials for Jan 24, 2011 city council meeting--Item N-10 :
Cathleen Russ is exploring the possibility of the library operating as a private, non-profit 501 (c ) 3 organization. Preliminary results indicate that such an organization would not be sustainable. A legal opinion is also necessary to clarify some issues, such as use of city assets by this organization.