MINUTES OF THE
BAY COUNTY LIBRARY SYSTEM
BOARD OF TRUSTEES
REGULAR BOARD MEETING
May 25, 2005
Ella Jane Martini, Vice Chairperson, called the regular board meeting of the Bay County Library System Board of Trustees to order at 5:20 p.m. on May 25, 2005 in the County Commission Chambers, Bay County Building.
Roll call present: Derald Adcock, James Davison and Ella Jane Martini
Michael Gray and Howard Wetters arrived at 5:25 p.m.
Other: Georgianne Adcock, Norm Bamberger, Rick Bukowski,
Marilyn Kaeckmeister, Steve List, Judy Mullison, Steve Neavling,
Fred Paffhausen, Eileen Schulz, and Sarah Wohlschlag
MINUTES
Motion by J. Davison, seconded by D. Adcock, to approve the minutes of April 27, 2005 Regular Board meeting. Motion carried.
Motion by D. Adcock, seconded by J. Davison, to approve the April 27, 2005 Closed Session minutes, May 4, 2005 Special Board Meeting. Motion carried.
Motion by D. Adcock, seconded by J. Davison, to approve the May 4, 2005 Closed Session minutes. Motion carried.
BILLS PAYABLE
Motion by D. Adcock, seconded by J. Davison, to approve the bills as presented, numbered from 33994 through 34136 and 4188-4206 for a total payment of $285,644.96. Motion carried.
Michael Gray and Howard Wetters arrived at 5:25 p.m.
FINANCIAL REPORT
April 2005 Financial Report
April 2005 Penal Fine Report – Kevin Ayala explained that the Penal Fines have come in below budget for the last several months. To compensate for the approximate $50,000 shortfall, he has put together a recommendation to cover this. The report appears later in the agenda for trustees’ discussion.
Motion by J. Davison, seconded by D. Adcock, to receive the April 2005 Financial Reports and April 2005 Penal Fine Report. Motion carried.
DIRECTOR’S REPORT
Fred Paffhausen announced the wonderful donation to the Capital Campaign Fund made by Jack and Alice Wirt. He stressed how important this gift is to the Bay County Library System and how much it is appreciated. He shared that this family has made generous donations to Bay County by supporting the Women’s Center and scholarship endowments for Delta College and Saginaw Valley State College University; nearly every community effort that comes along, this family has been a major contributor
Michael Gray and Howard Wetters arrived at this time.
Motion by M. Gray, seconded by D. Adcock, to receive the Director’s Report. Motion carried.
M. Gray chaired the remainder of the meeting.
OPEN TO THE PUBLIC
Wirt Capital Campaign Donation – M. Gray asked for a resolution from the board on the Wirt Family donation as it has been offered for a naming opportunity for Central Library. F. Paffhausen requested that the new Central Library be named the Alice and Jack Wirt Public Library, noting the difference that it is not a branch library but a public library.
Motion by H. Wetters, seconded by J. Davison, to name the new Central Library the Alice and Jack Wirt Public Library.
Roll call: D. Adcock – yes; E. J. Martini – yes; J. Davison – yes; H. Wetters – yes; M. Gray – yes. Motion carried.
CORRESPONDENCE
Please Tell Us What You Think – Linda Michalak, Ellen Higgins, Ginny Hughes, and
Mary Kaye Bluhm
M. Gray asked that a follow-up be brought back to the next board meeting on M. K. Bluhm’s comment that the computers are slow in processing and that she continually lost information she was working on.
Motion by J. Davison, seconded by D. Adcock, to receive the correspondence. Motion carried.
COMMITTEE REPORTS
Personnel Committee – James Davison, Chairperson – James Davison shared from the meeting on May 12, 2005 that the committee discussed and reviewed the Personnel Manual. Staff will make the suggested changes and bring them back to the next Personnel Committee meeting.
Bylaws – The bylaws have been sent to attorney Pat Kaltenbach for his review. Once this is completed, they will be presented at the next regular board meeting for trustees’ review.
Director’s Six Month Evaluation – Evaluation forms have been sent to all trustees for their input. J. Davison reported the evaluations have now been returned and a time will be set for the library board chair and him to review. A second review will be done by the Personnel Committee then brought to the full board meeting.
Bay City Branch Managing Librarian position – F. Paffhausen shared there was only one staff person who applied for the position of Managing Librarian at the Bay City Branch. Since her application was submitted, she has accepted another position with the Frankenmuth School System. F. Paffhausen informed the board that in the interim, possibly for the next 5 or 6 months, he intends to cover this vacancy by appointing Sheila Pearsons, Managing Librarian of the South Side Branch, to manage the Bay City Branch as well. Once there is a new Assistant Director hired and or the Managing Librarian position at Bay City Branch filled, she would then go back to managing the South Side Branch full time as she does now. He shared that during his meeting with S. Pearsons, she offered some alternative ideas she would like to suggest to cover this position. He explained that for the present time, until this position is filled, there is the need to have a Branch Manager in place at least part time addressing the day-to-day operations. M. Gray commended the director’s creativity, given the fact the library is less than a year away from closing the Bay City Branch, this decision will help in covering the short fall in Penal Fines and other budgetary concerns the library is facing. F. Paffhausen mentioned that with this move, S. Pearsons would be reclassified from a Librarian I to a Librarian II position. The increase in salary would be approximately $1,500 for this move. He stated the library would save approximately $38,000 in salary and benefits by making this change. He shared that from his meeting with S. Pearsons, he made it clear this position is not permanent; but only until positions are filled or the necessary decisions for staffing Central Library are made. A suggestion was made to combine the Assistant Director’s position with managing the new Central Library, but no decisions have yet been made.
Children’s Librarian Position – M. Gray asked whether board action was needed regarding the impending vacancy of the Children’s Librarian position; given the fact that the Summer Reading and other children programs are beginning. F. Paffhausen commented that Christine Neirink would not be leaving until August 11, which would allow adequate time to hire someone for the position. He said he would first like to post the position internally and if no response then it would be advertised in the paper. He would like to fill this position in time to allow for them to work with C. Neirink before she leaves.
Bay City Times Article – Ella Jane Martini commented on the recent article and the negative comments made regarding staff leaving the Bay County Library System. She pointed out that the ones who have left, have moved onto bigger and better positions. One has retired, and the others have moved onto better jobs; one has gone from an Assistant Director’s position to a Director’s position. Most recently the Children’s Librarian, has taken a job closer to her home. Regarding this same article, M. Gray pointed out that it also stated he had not been available for comment. He found this curious, as he had no voicemail, email, or message that the Bay City Times was trying to reach him either at work or at home. He has contacted the Bay City Times’ editor to discuss this matter.
Finance Committee: - Ella Jane Martini, Chairperson
System wide insurance bid – E. J. Martini shared that at the last Finance Committee meeting trustees listened to presentations from four insurance carriers. At that meeting it had been recommended by a 2-1 vote to hire Bamberger Insurance as the low bidder, contingent upon what the cost would be to add an additional $5,000,000 in Liability coverage. She pointed out that the R.F.P. did request a total of $10,000,000 in liability coverage, which the other three companies did quote on. The Finance Committee gave the low bidder, Bamberger Insurance, the opportunity to submit by Friday, May 20, 2005 at 3:30 pm., the cost for the additional coverage. This deadline was not met and as chair of the Finance Committee, E. J. Martini recommends rejecting all bids and staying with the current insurance provider and once all construction projects are complete, to re-bid the insurance policies. E. J. Martini asked if there were any additional comments from the board. M. Gray pointed out that as the library is currently looking at a projected $50,000 shortfall due to low Penal Fines and understands there was information received from the insurance provider, asked Kevin Ayala for his input. K. Ayala acknowledge he did have several conversations with Norm Bamberger, Bamberger Insurance, regarding stack limits and how they are used and also the cost of the additional coverage. He received an estimated cost yesterday of $20,000 for the additional $5,000,000 liability coverage. M. Gray recalls there was a question about the aggregate in the library’s current coverage and whether the additional coverage was necessary. K. Ayala suggested allowing N. Bamberger to speak on the insurance policy coverage as he was present in the audience. N. Bamberger stated the limits of Liability his company is offering is $5,000,000 per occurrence, per line item, no aggregate, no retentions, and no deductibles. Under the library’s existing policy he understands there are two areas of deductibles and retentions; under Directors and Officers, $25,000 retention, and the umbrella policy where there is $10,000 retention. With these two areas, there is an exposure of $35,000 out of pocket expense, once the $1,000,000 has been used. In addition to this there are aggregates and once reached there is no more coverage available. The policy offered by Bamberger Insurance does not carry a retention requirement and has up to $5,000,000 per occurrence and for multiple times. He shared that his company insures over 100 library systems in the state of Michigan and at this point there are very few with $5,000,000 limits, the reason being that the risk is very minimal for any claim exceeding this amount. After further discussion a roll call vote was called for on the motion.
Motion by E. J. Martini, seconded by J. Davison, to recommend rejecting all insurance bids; remain with the current insurance provider until all construction projects are complete and then at that time to issue R.F.P’s for insurance providers.
Roll call: D. Adcock – yes; E. J. Martini yes; J. Davison – yes; H. Wetters – no; M. Gray – no. Motion carried.
25% Carry Over Monies/Budget adjustment – E. J. Martini recommends approving the 25% Carry Over Monies based on the discussion at the Finance Committee meeting. M. Gray added that this 25% carry over monies is a result from a decision made at the end of last year, where trustees approved to direct the Managing Librarians and the Superintendent of Buildings and Grounds to spend 25% of the savings from their yearly budget to be used in the succeeding year for additional programs.
Motion by E. J. Martini, seconded by D. Adcock, to approve the 25% Carry Over Monies/Budget adjustment. Motion carried.
2004 Encumbered Monies Budget Adjustment – E. J. Martini recommended approval of the 2004 Encumbered Monies Budget Adjustment. K. Ayala commented this money is a result of orders placed at the end of last year, received this year, and need to be paid from the 2004 budget.
Motion by E. J. Martini, seconded by H. Wetters, to approve the 2004 Encumbered Monies Budget Adjustments. Motion carried.
2005 Budget Reduction due to Penal Fines – E. J. Martini recommended approving the 2005 Budget reductions. K. Ayala pointed out that after the discussion on the insurance, the savings anticipated by changing companies cannot be included now. His recommendation is to increase the Personnel Services Category to $18,000, reduce Other Services & Charges Category to $17,000. This still leaves the Total Expenditure reductions at $35,000. Trustees agreed to defer discussion to the next Finance Committee meeting, where additional information could be brought back.
Motion by E. J. Martini, seconded by H. Wetters, to approve the 2005 Budget Reduction due to Penal Fines.
E. J. Martini withdrew her motion.
Motion by E. J. Martini seconded by H. Wetters, to table the discussion for the 2005 Budget Reduction due to Penal Fines. Motion carried.
At 5:55 M. Gray asked for a 5 minute recess
The meeting reconvened at 6:00 p.m. H. Wetters was excused from the meeting at this time.
Transferring 1 Mil Money to the County - E. J. Martini recommended transferring the 1 Mil Money to the County. M. Gray asked to add to the motion that this information will be conveyed to Bob Redmond and the Building Authority to make them aware of the process that will be followed by the library when all of the bond proceeds are spent down, which are currently in the County Treasurer’s account. This notification can be given to the County Treasurer as well.
Motion by E. J. Martini, seconded by J. Davison, to approve the Transferring of 1 Mil Money to the County and to send notification to Bob Redmond, Building Authority Board and the County Treasurer. Motion carried.
MMLC Refund recommended use – E. J. Martini is recommending the MMLC Refund recommended use. F. Paffhausen added this a $9,000 refund from MMLC due to State Aid not being reduced as much as was anticipated, which created a surplus. This money is being refunded along with the caveat that it be used for technology accessibility in the library. Beth McQueen has suggested using this money for purchasing additional equipment to offer computer training at the other branches.
Motion by E. J. Martini, seconded by J. Davison, to approve the MMLC Refund recommended use. Motion carried.
Building and Grounds Funding Needs – E. J. Martini recommended to approve the Building and Grounds Funding needs. Derald Adcock asked if there will be a new bicycle rack installed at the Pinconning Branch. Steve List confirmed that one will be purchased. K. Ayala added the funds will come from $1,700 from the 25% Carry Over Monies, and asked for approval to take the balance of $9,100 from a miscellaneous account, that is in place to cover unforeseen expenses at the time the budgets are set. Referring to the list included in the packet, item 1 for Sage Branch lists ‘Gutter Repair due to Ice Damage’; J. Davison asked why this would not be covered under the warranty. Staff explained this was due to an unusual hard winter, the ice formed on the Northwest side of the building where there is little or no sun exposure which allowed the ice to form above the ice melt system. Trustees asked that staff verify it would not be covered under warranty before going ahead with the repairs. Item 3 under Auburn Branch, Arborvitaes – Replace Dying Bushes, trustees recalled this would be under warranty as well. Staff will check into both of these items and bring back information to the Joint, Building Authority and Library Board meeting next month.
Motion by E. J. Martini, seconded by D. Adcock, to approve the Building and Grounds Funding needs except for item 1 under Sage Branch and item 3 under Auburn Branch Library pending information received. Motion carried.
Contract Negotiations – E. J. Martini stated there would be a meeting scheduled to discuss the Tentative Agreements between management and the two unions, locals 612 and 1203.
NEW BUSINESS
Capital Campaign Co-chairperson – E. J. Martini recommend the appointment of Andreas Teich as the new co-chair of the Capital Campaign and Jane Smith as the Chair of the Community Division, a position vacated by Andreas Teich with his appointment to co-chair the Capital Campaign.
Motion by E. J. Martini, seconded by J. Davison, to appoint Andreas Teich as the new Co-Chair of the Capital Campaign and to appoint Jane Smith as the Chair of the Community Division of the Capital Campaign. Motion carried.
Sell of the Bay City Branch Building – K. Ayala asked for board approval to contact legal council to proceed with the paperwork to complete the sale.
Motion by E. J. Martini, seconded by J. Davison, to accept the bid of $323,000 for the sale of the Bay City Branch building and refer to legal council to proceed with the paperwork.
Roll Call: D. Adcock – yes; E. J. Martini – yes; J. Davison – yes; M. Gray – yes. Motion carried.
CLOSED SESSION
There was no need for Closed Session.
Motion J. Davison, seconded by D. Adcock, to adjourn the meeting at 6:20 p.m. Motion carried.
_____________________ _______________________
Derald Adcock Eileen Schulz
Secretary/Treasurer Recording Secretary