Wednesday, January 9, 2008
Tom Bunger, Antonia Matthews, and Mercy Rodriguez.
President Steve Moberly called the work session to order at 5:45 pm in Program Room 2B and noted that there was a quorum.
Steve asked the group to move the work session to an earlier hour on February 13 or move the meeting to another date. Most members were available on February 12 at 5:45. Steve will make it an action item for the January Board meeting.
Steve said the Board will be electing new officers at the January Board meeting. He indicated that he would not be a candidate for President.
Sara Laughlin said the signed contract hasn't been returned from the City yet. She hoped it would arrive by the next meeting.
Randy Paul asked if Steve would allow going back to election of officers.
Steve agreed.
Randy asked about the process of electing new officers.
Steve said there would be a process.
Penny proposed that John Walsh be President and she offered to be Vice President.
Randy nominated Fred Risinger.
Fred responded he's sorry, but he couldn't serve right now due to personal and professional commitments.
Randy asked Fred if he would consider the position of President if a Vice President took over. Randy indicated it was nothing against John. Randy stated he recommended Fred because the Presidency is such an important position and Fred has already demonstrated those qualities. Randy asked if Penny would step in as Vice President until Fred could take over in a few months.
Penny and Fred said no.
Steve asked if Fred would be interested in becoming Treasurer.
Fred said maybe if that opportunity came to pass. Fred told Steve that Steve has done a great job and made things easy for him.
The Board members applauded Steve.
Randy said he believes this is the most important thing in front of the Board. He stated there will be a decline in revenue in four years. In the minutes, he found 10 instances where that anticipated decline affected what the Board wanted to do. He indicated it would really be unfair to pass along the problem to a new board. Randy said he was afraid of cuts in personnel. He indicated the Board needs to look at both sides of the balance sheet, revenue and expenses. He proposed that a team with members from inside and outside the library spend the next year working on solutions. Randy said he doesn't mind taking the lead on this, but he felt at least one other Board member should help him.
Steve responded that the Board would need to see what the mission of this group would be. Steve said he had a few possible community participants in mind.
Steve asked Bonnie when we will lose the operating funding and how much exactly would be lost.
Bonnie answered that the funding would decrease in 2012 when the last bond payment was made. She promised to get information on the exact amount to be lost.
Penny said it would not only be a Board impact, but a community impact and a staff impact. The Board might want to consider someone in the community to be on this task force. She said there might also be an interested staff person or someone from the Friends of the Library.
Fred said a committee could be appointed, but then the Board would want a list of other people that might be called upon as experts.
Steve said the individuals he has in mind do not work at the library. He said another thing to think about is the changes proposed in property tax and local government structure. The 2008 session of the General Assembly will be key in determining funding sources. Steve indicated the Board could certainly plan to get the committee assembled, but there might be statutory changes that would determine choices.
Fred said that would be similar to what occurred with telecommunications. In that instance, legislation took away budgetary authority while he was president of the telecommunications council. Fred indicated it is possible that the Library could lose control as well.
Randy said that is a chance the Library takes every year.
Fred said it is highly possible this year and referred to one proposal proposed by Governor Daniels.
Randy asked other Board members to volunteer. Fred said he would help. John said he might consider it if Randy drafted a mission statement.
Randy felt the Board needed to take time to look at health insurance options. He referred to the Board's special meeting at the end of December and indicated the Board got a lot accomplished in a very short time. He reminded the Board they were able to find money to cover the health insurance increase. He believed the Board should work on it and plan for the future now, instead of waiting for the insurance company to give the Library a proposal with a short period for making a decision. Randy indicated he would be willing to be the point person, but thinks this should also be a Board function.
Steve asked if we have an agent who does this for us.
Sara said yes, R.E. Sutton provides the service.
Steve asked for confirmation that we pay that person for the service.
Bonnie and Sara both said no, not directly.
Steve asked Sara for confirmation that the company's representatives are experts.
Sara responded yes.
Randy responded that they are insurance people.
Steve said he would like to see this person at a future work session. He said when we have an expert we should at least hear what that person has to say.
Sara asked if the Board wished to appoint a task force.
Fred suggested the Board hear from the person providing the service before forming a task force.
John said it would help to have the person in as soon as possible.
Sara said Bonnie suggested that the Library use a higher percentage increase for 2009.
Randy asked why the person providing the insurance information doesn't come to the Library's Board well before the time due and advise the Board.
Sara responded that insurance companies were not willing to give a bid or estimate more than 45 days in advance.
Randy said the Library is locked in to taking advice of paid, commissioned consultants, which leaves the Library playing the victim. He felt that was not a strategy, but rather the Library waiting to be victimized.
Fred asked if the company got a commission if the Library followed their advice. He would like to hear the company representative tell the Board why it is better to go through his/her company. If the representative provides the Board with a good reason to do that, it would be great.
Penny would also like to invite the staff to be present to hear the insurance representative. She indicated that staff members have an vested interest. She said the Library has reference librarians who could be involved in helping the Board make a good decision.
Steve said the Board needs to plan further ahead than December for insurance in the future.
Steve asked for public comment. No comments were made.
Sara Laughlin presented initial information regarding the Capital Projects Fund, including a timeline, a list of all funds the Library has available for use, a list of projects included in the Capital Projects Plan already been approved by the County Council. The Board has an opportunity to adjust and/or add 2011 projects. She reviewed maintenance and repair recommendations from the Main Library Renovation Team. Sara asked the team to prioritize repair and maintenance projects, as requested in the Board’s July 2007 motion.
Sara suggested that the Board broaden the discussion to create a capital improvements plan including all funds available from the Building Corporation, Library Improvement Reserve Fund, Rainy Day Fund, and Capital Projects Fund.
She reviewed the calendar, and recommended that the Board hold the public hearing and approve the Capital Projects Fund request at its April meeting, in order to meet the statutory deadline of May 15. She indicated that gives the Board this meeting and February and March work sessions before that date to develop the request. She said the Board could just add new 2011 projects or make adjustments to 2009 and 2010 as well. If the County Council held their public hearing during a regular Council meeting, it would have to occur by May 13. Then they have would have until July 31 to adopt the plan. That leaves time to have discussions between MCPL and the Council. As soon as DLGF notifies the Library, there will then be a 10 day period for remonstrance.
Randy asked what happens if someone does file a petition.
Sara said if that happens, then DLGF holds a hearing and makes a decision to proceed or to disallow the fund.
Steve said the remonstrance usually does not result in stopping the fund.
Sara said that in 2007, there was no remonstrance and she hopes to have a plan that’s favorable to the public.
Penny asked Sara if we need to have an extra work session just to focus on this initiative.
Sara said that might be needed. She suggested that the Board should lay out the timeline and look at the money available from all funds. She doesn’t have prices and estimates and understands there is a lot more work to do.
Sara said that Bonnie had completed the asset analysis; the Library has approximately $28 million in assets. Using a typical 40 year depreciation period, the Library would need to invest an average of $700,000 a year to maintain its assets. She said the Library has been putting approximately $150,000/year into LIRF. She feels that the Library has been under-investing in the past and needs to invest more just to keep its buildings and equipment in tip-top shape.
Steve asked about funds budgeted for LIRF in the 2008 budget. Sara said there is $150,000 in the operating fund budgeted to be transferred to LIRF. She quoted the figures from LIRF, Rainy Day Fund and the Capital Projects Fund.
Randy said he has gotten different amounts when he has asked for the amounts.
Bonnie explained the variance is due to the timing and context of the request.
Randy felt he hadn’t been given accurate information when he asked and said he’s been clear about what he wanted to know.
Steve asked if the funds are still available if they are not all spent at the end of 2008.
Sara answered yes. The Board can choose which fund to use for which expenditure. She explained the Library already has the LIRF and Rainy Day funds and the first year of the Capital Projects Fund; the rest are estimates. She suggested the Library needs to hold some of the LIRF funds in reserve in case the Library needs to make unanticipated repairs in the future. She suggested $1 million be set aside, leaving about $2 million after deducting projects already underway.
John asked if that is after the $1 million in LIRF is set aside.
Sara answered yes.
Penny asked if that is counting what has already been spent.
Sara answered that is not counting what they have already spent.
John said he thinks the Board should use the Rainy Day funds carefully.
Sara stated her understanding that John wants the Board to use that fund last or try not to use it.
Randy recommended that fund should be taken off the list. He suggested if that fund isn’t listed it isn’t tempting for the Board to use that money.
Sara responded that is the Board’s decision to make.
Penny stated the Board had a 2008 Capital Projects Fund plan approved. She asked the other Board members if there would be a tax increase if the Board approved a new fund for 2009 and beyond.
Fred, Sara and Randy explained that the budget projections assumed that the tax rate would stay the same.
Penny clarified that they were saying the Council wouldn’t call it an increase.
Randy and Sara responded that the Council could say no, so the Library does have to go through the process of asking and have it formally approved.
Penny asked if these budget figures assumed the same tax rate.
Bonnie and Sara responded yes.
Randy encouraged the Board not to mislead the Council.
Sara said she doesn’t have any intention of that. She said that the Library Board doesn’t have to seek renewal of the Capital Projects Fund for 2009.
Randy said the Council could say no. He said the Board needs to shoot straight with the Council.
Sara said she thinks the Board has every intention of doing that.
Randy asked what would happen if the Council turned the Library’s request down and the Board has already approved the start of the expansion at the Ellettsville branch.
Sara said the Library would have to take it the remaining expense out of LIRF.
Randy indicated he wants to make sure the Board has a plan and does not wait until the last minute.
Sara said that the Board must plan for what happens if the Library doesn’t get approval from the Council.
Fred stated he thinks the Board will get approval. He believes the Library will make a good case to the council. He added he believes the majority of the County Council strongly supports this.
Penny said she was asking if the taxpayers would pay about the same amount. When presenting the facts to the County Council, the Board wants to provide all positive thoughts. She said MCPL would want to express to the council that they are the community. She urged the Board to work together. She said she knows all Board members want the best service.
Fred said the Board is not going in front of the Council to say this is a tax increase.
Steve agreed.
Randy suggested the Board has to be honest with the Council when the Library goes in front of them.
Steve said the issue at hand is the Capital Projects Fund which is on page 4 of the packet the Board has been looking at. He added the Board is not making any decisions tonight. He said this matter is going to be discussed further at two or three work sessions. Steve said Board members have a lot of information to think about.
Sara spoke about maintenance repair and improvements (page 5). She indicated new flooring is needed and was the second highest priority for staff. She and Bonnie met with a HVAC expert and were informed there are no longer any boxes available for the system, so as the boxes fail they can’t be fixed. Sara estimated it would cost $150,000 to $200,000, but it is not (yet) an emergency.
Penny asked for an estimate on flooring.
Sara said has no idea. She thinks it will cost $100,000 or more, as it will be a huge job and will involve moving stacks.
Fred asked if there is any way Sara can give the Board an estimate for the repairs and improvements.
Sara said yes. She asked which ones the Board wanted to make their priorities.
Fred said he would be willing to go with her and the staff’s recommendations of priority ratings. He said he’s not sure if it is necessary for the Board to discuss all that are listed.
Steve asked what this list has to do with the Capital Projects Fund.
Linda asked if an area or room renovation would be a naming opportunity. She understood the long-term needs for dealing with facilities costs, but she thinks there are some naming opportunities.
Sara presented the drawings from the earlier second floor renovation proposals. Even if there were some pieces of the plan they didn’t like, there might be other pieces that might still be feasible. For example, the Indiana Room area has poorly utilized space and staff are isolated when they work the desk there. In the 2007 plan, the desk would move, and an area with windows would be opened up. She pointed out that the Library’s small Audiovisual Area is generating 40% of the Library’s circulation, and there is inadequate space to shelve all materials. She suggested it is important to think ahead three or four years, so walls aren’t moved before carpet is replaced, for example.
Steve said he believes an air conditioning system that works is the most important.
Sara said a few days without air conditioning could be devastating to our collection.
Sara said she will draft a proposal for the February work session.
Fred responded he would appreciate that. He indicated so many of the topics are interlocked and complicated with long-term financial issues. He added that, if the AV area is generating 40% of the Library’s traffic, that the Board should take a look at it.
Steve said he would not support moving the AV area from the first floor.
Fred said he definitely would like to see a proposal so the Board can look at these things. Fred indicated the air conditioning is more important than carpet.
Penny said the Library will not want to get carpet until it has a plan.
John asked the relationship from the list they have been discussing to the shorter list.
Sara responded that her list is the shorter one and is the compilation of the top staff priorities and her own assessment. She added there is another part to the list: the improvement needs. Sara explained the problems that initiated redesign of the second floor still exist and in some cases have gotten worse. She said the demand for held materials has already grown larger than the area can accommodate. She added that, ten years ago, the Library had viewing rooms, where the Bookstore is located now. The Library doesn’t have the demand for viewing rooms anymore as AV formats have changed. DVD’s cost no more than a book; the format is wildly popular. She indicated this was a trend that was unimagined in 1997. In that time period, the Library has seen probably a 50% increase in circulation, and has made minor furniture changes but no major changes.
She shared the challenges in the Library’s Computing Center. She put together a task force to address the problems there. Over Christmas the Facilities staff moved eight computers from the Computing Center to the Main Floor and rearranged the remaining computers to make them further apart. Staff are coping with space issues in the Library by installing shelves and moving things around.
Sara reminded the Board that she had asked them to bring their bound copies of the Internal Controls Study. She referred the Board to a one-page consultant’s recommendation she provided in the Board packet.
Steve noted that the study was undertaken at the request of Linda.
Sara reported her staff members are actively working to address the recommendations in the report. Bonnie is working on the financial control policies for approval at a later meeting.
Bonnie explained the consultants recommended not cutting checks until after receiving Board approval.
Sara said the consultant also noticed both signatures are on one stamp which was not a secure method. Bonnie and John are currently the signatories. Bonnie is working on adding Sara as a third potential signer.
Sara said the consultants also allow a single signature to be used for recurring expenses, such as utilities, phone and other non-controversial things of that nature. She noted that the Board would need to approve a limited list of expenses that could be paid without a second signature.
Penny asked if patrons being able to pay by credit cards had improved the cash-handling situation.
Sara said patrons are using this online payment option.
Bonnie added that credit card payments are currently only accessible for patrons on the Library’s website. It is not yet available to patrons that come to the Library in person.
Linda stated, if she were continuing on the Board, she would want to have an update on recommendation #6 about data security; she feels the Board should ask for an update on that.
Steve asked if a quarterly update would be okay.
Linda responded yes, it just needs to be on the list.
Steve asked Bonnie to give a description of the Annual Transfer of Appropriations to the Board.
Bonnie explained the transfer is of funds from one account line to another account line and has a net zero effect.
Sara explained the need for transfers results from variations between the budgeted amounts and actual expenditures, when funds are overspent in some areas and underspent in others.
Randy asked what longevity stipends are. He thought the Library had done away with stipends.
Sara responded that that line item was in the 2007 budget and no such stipends would be given in the future.
Bonnie added that it was from the time when Cindy reclassified some positions.
Randy asked if this was all done under the previous administration.
Sara answered yes.
Randy responded that he is fine with the matter then.
Sara explained that this is a routine letter sent in January each year. She indicated if the Library doesn’t submit the letter, then it won’t get its tax funds until July. If the Library submits a letter, it can receive some of the funds each month, borrowing in advance on its tax draw. She indicated the Library has to formally ask in order to receive the advance.
Sara said the Board of Finance will hold its annual meeting immediately following the Board meeting to choose the newspapers for the publication of the Library’s board meetings and to review the investment policy. The Library does not have an investment policy. She added this is not a very creative document; it comes directly out of the Indiana Code. Investment options are very strictly limited.
Steve asked for Tom Bunger’s approval. Tom said it was fine.
Penny asked for confirmation that this was what the Board had always done, now formalized in writing. Bonnie confirmed.
John asked if the Board had to formally adopt the policy. Sara said yes.
Steve asked if Bonnie was comfortable with it. Bonnie said yes.
Penny asked if the Board of Finance was a separate meeting. Sara said yes and explained the meeting would follow the Board meeting.
Steve reminded Sara to have that as a separate agenda item.
Sara said it is separate meeting with an agenda.
Tom Bunger reported that Jim Whitlatch had made contact with Indiana Department of Labor and with ASCFME. He indicated the next thing to do was to make a list of who was eligible for the election. Everything is moving forward.
There was no public comment.
The meeting adjourned at 7:21 pm.
Contact
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Updated:
March 4, 2008
° http://www.monroe.lib.in.us/board/200801wrk.html
