Saturday, December 29, 2007
Mercy Rodriguez and Jim Whitlatch.
President Steve Moberly called the special meeting to order at 10:01 am in Meeting Room 1B. Steve announced that the Board had a quorum for the meeting.
Sara Laughlin presented a printout in the board's packet that is option 15 for insurance (see attached). She explained the slightly lower percentage for the library's contributions for an individual employee and the slightly higher percentage that employees would pay, roughly $20 more per month for insurance coverage.
Sara then presented a comparison sheet of local organizations and other libraries' insurance coverage. While still slightly lower for individual employees and higher for those with dependents, the Library's option 15 moved the Library closer to the other local government units.
In terms of the library budget, Sara reminded the board that they had talked about this issue last time and that while the amount is still a little bit over, the library could make up that difference from the $10,000 in reduced property/liability insurance costs, $10,000 in furniture savings, and the rest through vacant positions and lagging hiring. Sara then referenced a handout in the board's packets (see purple handout). She presented information showing that the employee's 3% salary increase wass higher than the health insurance increase so the employees would not use up all of their increase paying for the higher insurance coverage.
Randy thanked Sara. He said this option was close to what the Board was looking for. Randy asked Sara how close this option was to the staff's vote on insurance. Sara replied that three-fourths of staff who voted indicated they were willing to pay a little more to keep comparable insurance coverage. In her conversations with staff this week, they seemed to be quite pleased with the efforts of the Board and the Library to help the people who would have to pay the most.
Randy indicated that what Sara had come up with made sense. He believed staff would be pleased.
Janice commended Sara and how well Sara's staff worked together on this. Sara responded that it was the staff's efforts, especially Bonnie Estell and Ginger Ziglar-Thomas.
Steve asked Bonnie how many staff members were on the health insurance plan now and asked for confirmation that the current plan did include dental coverage. Bonnie indicated that 84 employees are currently covered and that the current plan did include dental coverage.
Steve asked Jim Whitlatch, the legal counsel present, if he was satisfied with this option or saw any problems with it.
Jim Whitlatch said this option was fine, he saw no problems with it.
Steve asked for any public comment. There was none.
Randy moved the Board approve option 15 for 2008 health insurance. Fred Risinger seconded the motion. All the board members present voted in favor of the motion. The motion passed.
Sara Laughlin presented the contract. She indicated that each Board member had a copy of the contract for their background knowledge.
Sara confirmed that the library's attorney, Tom Bunger, had looked at the contract to make sure that the library would be well protected if things were to go wrong.
Steve asked what the time line was and what would happen next. Sara indicated the next step would be for an architect to draw up a plan. The public will be able to take a virtual tour of the new space and comment on the plans. The Board and staff will see the plans before putting the project out for bid, which should be January or February. Construction will begin in the summer. Sara reminded Steve that the first Capital Projects Fund money will not be available until July 2008.
Randy had a question on Exhibit B, Optional Services. He asked if any of the optional services could be done in house to save any money. Sara said she believes some can be done in house.
Randy asked if the Board would be voting on all of those options today. Bonnie indicated the contract only has the dollar amount, not the options. Sara confirmed and indicated that the library would have to approve any optional services. Linda agreed and said it is only optional services. Randy said right but there is a dollar amount attached to it. Fred said it is still optional.
Randy asked about $400,000. Sara said the construction cost stated is the firm's estimate. The Board has to trust them as professionals to estimate costs correctly. Randy said his experience with this has only been since February, but during that time period, the construction costs for the second floor renovation were grossly underestimated.
Randy asked Sara to confirm that the Board didn't get more than one estimate for the design work. Sara said that was correct, but that multiple bids were not required for architectural services. OMS is familiar with the building because they completed the last remodeling at the Ellettsville Branch and the Library was pleased with their work.
Randy asked if the same individuals from the firm would be working on this project. Sara replied that only one, Matt Mayol, who was involved before would be working on this project.
Mickey Needham asked if she could speak. Steve recognized her. She said Sara was correct. Tom Padgett has died. Cynthia, the interior designer and the main person who worked on the project, has left the firm. In the initial meeting, Mickey and her team generally had positive feelings about the new people in the firm that would be working on the project.
Steve said that the Board does have members who are experienced in the architectural field. He referenced Linda Hunt specifically.
Randy said he had a variety of concerns. He thought the board was making a mistake with this project. Randy asked if OMS's fee was competitive. Sara was not sure. Steve asked if Linda would answer.
Linda responded that she couldn't answer whether the fee of $55 per hour was reasonable.
Randy was concerned about the quarterly rate on C.O.L.A.
Linda said this is a large firm and reputable in this area. She thought their rates were fair. She indicated this firm has been used by the Library before.
Randy said the Library might be dealing with the same firm, but the representatives of the firm are new to dealing with the Library.
Randy said this is the first money the Board is spending from the County Council. And much of their debate was because they have to go back each year. Randy asked if this is how the Board wanted to show the community that the library was using the County Council's money. Randy believed it was irresponsible for the Board to do this without at least getting another bid to compare costs. Board members couldn't confirm these rates. Randy said he had talked to Sara and Bonnie regarding this matter and they both indicated there was no rush on this. Randy said the Board should at least do more to confirm this. He said if this was someone's own money, they wouldn't be so quick to spend it without comparing other rates. He didn't see why the Board didn't get another bid on this.
Steve said on September 12, 2007, Fred Risinger made a motion for Sara and Bonnie to negotiate a contract with OMS. It was approved by the Board.
Steve referred to Linda to express her feelings because of her past experience in that field when working at IU. Steve indicated Randy isn't an expert in this field. Randy responded that he just said he had questions; he didn't have answers.
Linda said that she didn't have any qualms about doing this. If the Board had successes with a firm in past, they wouldn't want to start from scratch with another firm they don't know.
Steve Moberly referred to Jim Whitlatch for his opinion regarding additional bids. Jim responded that the Board has no obligation to accept any more bids.
Steve stated that at some point the board would have to authorize the optional services. He asked Jim to confirm that the Board wasn't authorizing that today though. Jim confirmed that this was correct. If it is an optional service, the Board would have to specifically authorize it.
Linda replies that by statute we do not have to call for bids.
Janice indicated she didn't have a question but did want to express her opinion. She said if the Board wanted to know they were going to get quality work, they should go with a firm they know rather than one they don't know anything about.
Randy said the library doesn't have a history with the people that will be working with this.
Janice said she understood that, but the Board knew the firm they work for; the library does have a history with the firm.
Randy said he doesn't understand why the Board wouldn't want another competitive bid. Randy noted that Steve thanked Sara for shopping around for insurance and saving $10,000. The Board has used that $10,000 and put it to good use for covering health insurance costs. Randy indicated he didn't understand why there was resistance to checking other rates first.
Randy asked how the Board was planning to pay for this when they don't have the money yet. Sara responded that the Board would borrow from the library's Rainy Day Fund. Randy said he can't believe the Board is contemplating this. Steve said the Board is only voting on the Ellettsville addition design at this time.
Randy moved that the Board delay this contract.
Steve said Randy's motion was out of order.
Steve asked Linda if this architect fee is comparable to others. Linda said she believed the percentages were comparable to others she had seen. She continued that if the Board got a construction estimate later and it was too high, the Board could vote it down at that time.
Steve asked if Randy want to make a motion.
Randy moved to table. He said the Board should consider other bids, even if they don't, by law, have to do that.
Steve asked for a second. There was no second. The motion died for lack of a second.
Linda moved the Board approve the contract. Penny seconded the motion. Randy requested a roll call. Sue called the roll. Five members of the board voted in favor of the motion: Janice Stockton; Fred Risinger; Steve Moberly; Linda Hunt; Penny Austin. Randy Paul voted no. The motion passed.
Randy said, during the budget process, the Board talked a lot about the Library's revenue going down in the next few years. He proposed a task force. He asked that the Board work on this in the January work session.
Steve said he assumed Randy had been working on it since Randy had assumed the responsibility to bring a proposal back to the Board. Steve said the Board would put it on the agenda for January.
Steve relayed that Indiana University School of Business professor Jim Grandorf has agreed to do a study that will also help the Library in reference to this fiscal challenge. This will be a class project and of no cost to the library.
Randy said he was proud of the Board and the staff for ending up with a much better health insurance option than it started with.
He proposed creating a task force to work on health insurance and ask that the item be added to the agenda for the next work session.
Randy pointed out that there was no health insurance increase last year. He noted that the Board took that money out of the personnel budget and put it in the Rainy Day Fund. Then the Board didn't want to touch it, which he felt was unfair. He would like to see a special reserve fund set up beyond the Rainy Day Fund that would be used to deposit money when the library has years of below-expected increases in insurance rates. The Board would put that money aside into such an account. Randy asked if this could be put on the agenda in January.
Steve said the Board will ask Bonnie Estell and the library's legal counsel to see if that is possible and appropriate given the rules that govern library accounts.
Steve asked if there were any public comments. There were none.
The meeting adjourned at 10:41 a.m.
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