Library Board of Trustees Meeting Minutes for Thursday, February 28, 2013
1. Call to Order: Chair Robert Sochacki called the Regular Meeting to order at 7:30 p.m.
1.1 Roll Call - Present: Trustees Robert Sochacki, Jean Hansen, Paul Snyder, Joe Corriveau and Mike DeFrancesco. Also present: Julie Herrin, Library Director; Anne Mannisto, Assistant Library Director; Carla Eggert, Administrative Assistant. Staff members Suzanne Schimanski-Gross and Patricia Garavoglia were in the audience. Absent: Trustees Alan Somershoe and Jim Morché.
1.2 Approval of the Agenda: MOTION: Mike DeFrancesco made a motion to accept the agenda as presented. Paul Snyder seconded the motion. Motion passed.
1.3 Approval of Meeting Minutes, 01/24/2013: Jean Hansen made a motion to approve the minutes as presented. Paul Snyder seconded the motion. Motion passed.
1.4 Citizen Comments: None.
2. Correspondence: None.
3. Presentation of the 2012 Audit-Plante Moran: Chris Jones from Plante Moran presented the audit of the Library for the 2011-2012 fiscal year, noting that once again the Library has a "clean audit". Jamie Montague from Plante Moran gave an overview of the 2012 audit report. She reported that there were no major changes in regulations from the Governmental Accounting Standards Board (GASB) this year. She asked the Trustees in attendance for any questions they might have about the audit. Jean Hansen asked about the current amount of $32,000 per year being set aside for Retiree Health Care. Mr. Jones reported that the valuation document for Retiree Health Care costs was updated this year. The Library could reduce the amount designated for this to $12,000-$13,000 per year based on the new valuation. Jean Hansen also asked about the phasing out of the personal property tax that is scheduled to go into effect in 2014. Mr. Jones stated that he would recommend continuing to deduct the full amount of estimated personal property tax and amending the budget if necessary when the changes go into effect. Mike DeFrancesco asked about the recommendation in the "Report to the Library Board" section that the Library consider moving to a "paid time off" (PTO) model, rather than providing employees time off specifically for vacation, sick time and personal time. Mr. Jones explained that the Library has over $140,000 in liabilities for compensated absences on its balance sheet. In the PTO model, there are usually fewer carry-over days and fewer "paid out" days when an employee separates from the Library. This reduces the amount of compensated absences due to employees. A benefit to employees of the PTO model is that they are able to utilize all of their allowed time off for whatever purpose they desire. MOTION: Jean Hansen made a motion that the audit for the 2011-2012 fiscal year be accepted as presented. Paul Snyder seconded the motion. Motion passed.
4. Director's Report
Statistics: Julie Herrin reported that circulation was up 3.79% and the door count was up 5.69%. The use of eBooks has increased 74% over last year. Freegal had 110 uses with 712 songs downloaded. Usage of BrainFuse was 533 for the month. Use of the Library wireless access was up to 800 this month which is very high.
Programming: There were 31 programs for youth with 672 children attending. There were 8 programs for adults, with attendance of 262 people. The Foreign Film series continues to be very popular.
Teen Services: Battle of the Books will be held on March 20. There are 32 Battle of the Books teams signed up with 159 students scheduled to participate.
Staff: Julie reported that Vicki Dixon is the new part-time librarian, filling the vacancy in Adult Services. She has started and is doing very well.
Technology: Julie reported that support for Windows XP ends next year, so staff computers are being converted over to Windows 7 and in some instances replaced if the computer is too old to be converted. The support from the Friends for $15,000 has allowed the Library to purchase five new computers for the Youth Services area. These computers are AWE workstations which are very rugged, turnkey, all-in-one digital learning stations, with preloaded educational games and software. They have a three-year warranty and will require much less staff time to maintain than the computers currently in the Youth Services area.
Facilities: Julie reported that the replacement of the light fixtures around the main staircase should be completed tomorrow, with the exception of one damaged fixture. This will be sent back to the manufacturer for repair and will be installed at a later date. The replacement of the carpeting in the circulation work area and main staircase will begin on Friday, March 29 when the Library will be closed. The remaining work areas will be carpeted while the Library is open.
PR: Julie reported that the Donor Recognition Event, the Geek Gala, held on Sunday,
January 27, went very well. She will discuss this further with the Development Committee report. The Taste of Northville will be held on Saturday, March 9. The Library Newsletter that will be mailed on March 1 includes our Annual Giving Campaign insert. Online donations using a credit card will soon be available as well, since Julie has set up an account with Midwest Transaction Group and Authorize.net to handle the processing of online credit card donations. The direct donation page for our website is currently being designed by our staff.
5. Friends Report: Judy DeFrancesco gave the report of the Friends Board Meeting held on February 21. She reported that the Friends have the following new Board Members: Christine Litka, Public Relations; Aleta Hill, Recording Secretary; Joe Oldenburg, Used Book Operations; Regina Mingela, Membership; and Linda Bolam, Corresponding Secretary. The Friends Annual Meeting will be held on March 21 and elections will take place at that meeting. According to the Friends President Carol Oldenburg, the major goals for the group this year will be raising community awareness of the Friends and growing the membership. Various strategies to accomplish these goals are being reviewed. Total members in 2012 were 240. The Friends Budget for 2013-2014 was approved. Mission Based Books (MBB) asked to renegotiate its contract with the Friends. The major changes MBB has requested include the elimination of a minimum price per book to the Friends and a change in the division of profits from 50-50 to 60% to Mission Based Books, 40% to the Friends. The Friends Board approved a one-year contract with these changes but will not sign the contract until Mission Based Books has paid past due monies owed to the Friends. The next Used Book Sale will be held May 31-June 2, 2013 with a Preview Night for Friends members on Thursday, May 30.
6. Budget and Finance Review:
6.1 Bills over $1,000 for approval: Treasurer Jean Hansen presented the List of Bills over $1,000 for February 2013. MOTION: Jean made a motion to approve these bills in the amount of $125,068.86 for payment. Mike DeFrancesco seconded the motion. Motion passed.
6.2 Financial Report: Jean reported that a tax judgment in favor of Toll Brothers for several properties in Wayne County resulted in a large tax refund due from the Library in the amount of $34,991.37. There is $284,065.43 due to other funds in the Operating Fund, of which $200,000 was borrowed from the Reserve Fund and $84,065.43 is the excess of revenue over expenses from last year's budget. MOTION: Jean Hansen made a motion to transfer $284,065.43 from the Operating Fund to the Reserve Fund. Mike DeFrancesco seconded the motion. Motion passed.
At the end of fiscal year 2012 there was $3,808 left in the Private Donations account in the Operating Budget which should be moved to a Fund Balance account. MOTION: Jean Hansen made a motion to create a fund balance account, "Funds-Endowment" and to transfer $3,808 into this account. Paul Snyder seconded this motion. Motion passed.
Jean reported that the amount budgeted for acquisitions are ten percent of revenues. The amount for books and subscriptions needs to be amended to stay in line with projected revenues. MOTION: Jean Hansen made a motion to amend the budgeted amount for the Books and Subscriptions account for 2013 to $195,623. Mike DeFrancesco seconded the motion. Motion passed.
MOTION: Jean Hansen made a motion to add a line item to the budget for Friends-Revenue and another line item for Friends-Expenses, budgeted at zero for 2013. Mike DeFrancesco seconded the motion. Motion passed.
7. Committee Reports
7.1 Development Committee: Julie Herrin reported that the Development Committee met on February 12. Barbara Glover has resigned from the Committee as she is moving to Columbus, Ohio and has sold her home here. She has been instrumental in establishing the Endowment for the Library and will be greatly missed. The internal goals of the committee for next year are to support the Endowment and to increase the Endowment Fund to $500,000 by the end of 2014. The Geek Gala donor recognition party was held on January 27, with about 40 people attending despite poor weather. We will hold this donor recognition event every other year. The annual solicitation for donations went out in the latest Library Newsletter which will be mailed at the beginning of March. There will be a program on Planned Giving on Thursday, May 16 at 2:00 p.m., featuring speakers from Leave a Legacy.
8. Announcements and Comments
8.1 The next Finance Committee Meeting is scheduled for Tuesday, March 26, 2013 at
10:00 a.m. in the Carlo Meeting Room.
8.2 The next Board Meeting will be on Thursday, March 28, 2013 at 7:30 p.m. in the Carlo Meeting Room.
8.3 There was discussion regarding a lawsuit over whether a group of Wayne County communities with TIFs (Tax Increment Financing) can take a portion of tax revenue appropriated for the Detroit Zoo. The City of Northville is party to this lawsuit. There was discussion as to how this relates to a portion of the Library's millage revenue being captured by the City's TIF, the Downtown Development Authority (DDA). The Library is located just outside the DDA.
According to the Library's legal counsel, whom Julie Herrin has contacted, the DDA has outstanding bonds which will not be paid off until 2024, and therefore it is not possible to get out of this annual tax capture. About 9% of the Library's revenue from the City is diverted to the DDA. There was discussion relating to asking the DDA to contribute to the repair of the cement area in front of the Library.
MOTION: Paul Snyder made a motion to adjourn the February Regular Board Meeting. Mike DeFrancesco seconded the motion. Motion passed. The Meeting was adjourned at 9:00 p.m.
Paul Snyder, Secretary