MINUTES OF THE
BAY COUNTY LIBRARY SYSTEM
BOARD OF TRUSTEES
REGULAR BOARD MEETING
September 22, 2004
Michael Gray, Chairperson, called the regular board meeting of the Bay County Library System Board of Trustees to order at 5:20 p.m. on September 22, 2004 in the County Commission Chambers, Bay County Building.
Roll call present: Derald Adcock, James Davison, Michael Gray, Ella Jane Martini, and
Howard Wetters
Other: Georgeanne Adcock, Kevin Ayala, Rick Bukowski, Trish Burns, Shaun Byron,
Bev Humerickhouse, Marilyn Kaeckmeister, Steve List, and Fred Martini
MINUTES
Motion by J. Davison, seconded by D. Adcock, to approve the minutes of August 25, 2004 regular board meeting. Motion carried.
BILLS PAYABLE
Michael Gray questioned check number 32798 made out to the Grace A. Memorial Library for $150. He noted the explanation states it is for a lost interloan item and believes this is an unusually large amount for interloans. Kevin Ayala agreed that it is, however if the item should be returned or the patron pays for it, Bay County Library would then keep the item or the money. Normally interloan items average $15-$20 per item. Trish Burns offered to find out whether this fee covers several items or if it is for a single reference book. T. Burns added that the Bay County Library System also will invoice libraries that have borrowed items for their patrons but have not had the items returned.
Ella Jane Martini requested that in the future, staff record the voucher numbers on the final page of the check register along side the total dollar amount for each check run.
Motion by D. Adcock, seconded by J. Davison, to approve the bills as presented for payment. Motion carried.
FINANCIAL REPORT
August 2004 Financial Report
August 2004 Penal fine Report - K. Ayala reported revenue is coming in as expected; penal fines to date are just under $300 from what has been budgeted. Rick Bukowski referred to the $7,636,068 certificate of deposit and questioned the term of the investment. K. Ayala responded that this is invested out on a short term, 6 month basis. Noting that interest rates are showing an upward swing and therefore not be prudent to have a large amount locked in as a long term investment if interest rates continue to increase. He also noted that the majority of this money is for the construction project and needs to be available.
Motion by H. Wetters, seconded by J. Davison, to receive the August 2004 Financial Report and the August 2004 Penal Fine Report. Motion carried.
OPEN TO THE PUBLIC
There was no public input.
CORRESPONDENCE
Please Let Us Know – Tim Appold – T. Appold commented on the amount of time teenagers use the public computers for playing games on. He believes 90% of the computers are being used for this purpose making them unavailable for tax paying, adult users. He would like this to be changed. In a written response, T. Burns thanked T. Appold for his input and shared with him the library will soon be adding software to the public computers that will set a specified time for each user. She believes this will be available within the next two months. E. J. Martini suggested designating a certain number of computers for games only. T. Burns responded staff would explore this possibility; noting that the computers in the Children’s area are mostly used for games; those in the Computer Lab have a wide variety of use on them. She believes the software that will be purchased will take care of the concerns for many patrons.
Please Let Us Know – Diane Bracher – D. Bracher commented on the Horizon software that has replaced Dynix for the library’s on-line catalog. She is frustrated that as a preschool teacher, doing research on children’s material, she can no longer have the software search for just juvenile materials as she could with Dynix. She listed additional concerns for placing holds; system seems to be much slower; and at times it takes several attempts before the system will accept her library card number. The Auburn Branch Managing Librarian, Paul Lutenske, spoke with D. Bracher to address her concerns and shared with her that many of them are on a ‘to do’ list with the Valley Library Consortium. As VLC becomes more familiar with the system themselves, they will be able to program it with the features patrons and staff have come to depend on with Dynix. She thanked him for his response and shared she is eager for this system to become more user friendly. M. Gray asked T. Burns to comment on the new system compared to the previous one. She believes there has been some loss of functionality from the old to the new; such as the sorting feature is not what was expected. She said that VLC is responding to these issues and is making every effort to make this new catalog software adapt to the needs of library members, although along with answering these concerns from current member libraries, they are also working with new members to VLC and are first time users with a catalog system such as this one. Representatives from Horizon have done some customizing to the software and are continuing to work on other concerns libraries have.
Motion by J. Davison, seconded by D. Adcock, to receive the correspondence. Motion carried.
PROGRESS AND SERVICE REPORT
Pinconning Move
Telecirc Update
Teen SRP Statistics
Motion by H. Wetters, seconded by D. Adcock, to receive the Progress and Service Report. Motion carried.
Library Construction Progress update – Howard Wetters gave a brief update from the library construction project progress meeting held earlier today. Regarding the Auburn Branch Library boiler and the concerns trustees have, H. Wetters shared that he made it known to Skanska that the board will continue to hold 10% of the retainage amount until these issues are resolved. He shared that Bob Redmond, representative for the Building Authority, who was also in attendance at this meeting, added that these issues have been ongoing and need to be resolved. At this meeting, Skanska requested that the architect, FTC&H, look into the life expectancy of the boiler used at the Auburn Branch Library and based on this information; bring back a recommendation regarding an extended warranty for trustees to review. At this point there has been a two year warranty offered but it has been made clear that it is unacceptable. Regarding the Auburn Branch roof, Steve List shared that the materials have been ordered and repairs will begin in the next few weeks. M. Gray pointed out that this is the same information given to the board last month but repairs still have not been made. He believes that if this work has not been completed by the next library board/Building Authority meeting, he would be ready to enter into legal action in order that this work could be bid out so it can be completed. He reminded trustees he attended a meeting in Lansing, Michigan on April 9, 2004, and met with representatives from both FTC&H and Skanska in order to resolve this issue; it is now September 22 and work has not yet started. He asked that it be conveyed to Skanska the disappointment he feels that these repairs have not begun. The construction for the Central Library is underway; workers will begin pouring the concrete for the foundation in the next few days.
Jim Davison asked for an update on the Sage Branch Library. H. Wetters responded he and S. List visited the Sage Branch Library this afternoon; checked on the carpeting that needed to be re-laid due to irregular pattern design; cracking on the front entrance steps needs to be discussed with the CM, other issues such as the concrete floor for the basement is in; outside drainage tile has been completed; fans have been set up in the basement to speed up the drying process of the cement in order to apply the sealer; they expect an additional 1-2 weeks before the sealer can be applied. Handrails are not yet completed; the CM is obtaining bids for them. H. Wetters asked Skanska if the handrails were not installed soon, would it impede the occupancy of the building. Skanska will look into this but does not believe it would delay the opening of the library. Sound barriers around both HVAC systems for the Auburn and Sage Branch libraries are ready to be installed. J. Davison conveyed his disappointment with the contractors as he believes they are purposely dragging their feet regarding the project. There has been at least 4 weeks with nothing going on which makes it very difficult to explain to taxpayers when there is no explanation as to why. H. Wetters responded that he has received email from Skanska stating they were unhappy with a resolution passed by the library board that stated the board would try to recover funds if it was appropriate. The email suggested this was unacceptable to Skanska and that they wanted the resolution changed. H. Wetters responded to this email and told them the resolution would not get changed and the next resolution would be to withhold a percentage of the retainage unless work to correct these problems did not begin soon. Since then, workers have begun the repairs. M. Gray added that he too, had received the same email. M. Gray contacted Jim Cole, principal of Skanska, and made him aware of how disappointed he was over the email. He also reminded him that the Building and Grounds Superintendent reported at the last Building Authority/library board meeting that, based on information from Skanska, the work would begin in 7 days. M. Gray reported this to the media only for it not to happen.
M. Gray asked if there is a projected end date when the work would be completed. S. List anticipates by the end of October the building could be ready to move back into. E. J. Martini is in favor of setting a grand opening date by December 1. M. Gray believes it should be before Thanksgiving. After further discussion trustees agreed to a November 10, 2004 grand opening for the Sage Branch Library. S. List confirmed this is not a ready to move in date but a target date that the library should be open. It was confirmed staff would already be moved back in; that November 10 would be the grand opening of the Sage Branch Library.
Motion by E. J. Martini, seconded by J. Davison, to schedule the grand opening for the Sage Branch Library for Wednesday, November 10, 2004. Motion carried.
Grand Opening for the Pinconning Branch Library - E. J. Martini asked if a date has been set for opening the new Pinconning Branch Library. T. Burns responded a soft opening for the library is planned for October 11, 2004 but there has not been any date discussed yet for a grand opening; staff wanted to wait until the new director was on board and could be part of the planning process.
M. Gray shared that Fred Paffhausen’s board has released him but asked that he not start here until the 13th of October. Trustees were in agreement the date could be set for the grand opening and once the new director comes on board, he could be involved with planning the details for the day. It was agreed that October 20th would be the date for the grand opening of the Pinconning Branch Library.
Motion by H. Wetters, seconded by J. Davison, to hold the grand opening for the Pinconning Branch Library for October 20, 2004. Motion carried.
COMMITTEE REPORTS
Personnel Committee – James Davison, Chairperson
No meeting.
Finance Committee: - Ella Jane Martini, Chairperson - E. J. Martini reported the negotiating committee has received the first draft of the two labor contracts and will be meeting soon to discuss them. A final draft will be brought back to the board before presenting them to the union.
UNFINISHED BUSINESS
Library Director Search Update – M. Gray shared a tentative start date for F. Paffhausen, will be October 13, 2004. K. Ayala has had several phone conversations regarding the fringe benefits offered by the library. M. Gray shared that F. Paffhausen has given notice to his board that he would begin here on October 13; however they have requested he be available for several meetings to close out their building project. M. Gray noted the one issue that does deviate from what the board originally agreed to is that F. Paffhausen has requested a five year instead of a three year contract, which would be subject to satisfactory annual performance reviews, and could be successfully renewed a year at a time. M. Gray shared that he had no concern with increasing the contract to five years.
H. Wetters suggested offering moving expenses for F. Paffhausen. H. Wetters suggested that the board agree to the five year contract instead of the three year contract; offer the top of the salary range of $81,700 as his move to the Bay County Library System will be a $7,000 cut in pay for him from his current position; and to give the chairperson some latitude to work with F. Paffhausen for moving expenses, up to $2,000 on a one time basis. He asked trustees for their input. J. Davison commented that his concern is giving an individual a raise before he begins. Rick Bukowski agreed; stating F. Paffhausen has only asked for an increase to the length of the contract and has not asked for a salary increase. E. J. Martini commented the wage scale was based on years of service; of which F. Paffhausen has. J. Davison believes this decision is different from what was discussed. M. Gray stated he understood that as long as the candidate accepted a salary within the range offered, it was acceptable. He reminded trustees Marianne Hartzell told trustees at the time it would be difficult to have a candidate accept the position for the lower end of the salary range given the environment the library is currently in.
J. Davison stated he is not comfortable voting on an exact salary without it being in a written form and suggested that this be brought back to the next meeting before trustees make the decision on the salary. M. Gray responded he understood the board decided the library board chair would have the latitude to negotiate a deal within the salary range stated in the agreement. M. Gray added that it is his intention to offer the position at the top salary range.
Motion by H. Wetters, seconded by E. J. Martini, to amend the initial authority granted to the board chair, to sign a five year contract, instead of a three year contract with satisfactory performance review each year. Motion carried.
NEW BUSINESS
Proper Records Management/Minutes – E. J. Martini stated that closed session meeting minutes and the notes from those meeting are to be destroyed after one year and one day according to the Open Meetings Act. She has talked with library attorney, Jim Hammond, and understands he has closed session minutes and notes that have not been destroyed. He indicated to her that he would not destroy them without having the direction from the board to do so. E. J. Martini asked what the policy is for the library’s administration regarding closed session minutes. T. Burns explained that the minutes and notes from closed session meetings the library is in possession of, are kept in a locked file for one year and a day, and then destroyed. E. J. Martini suggested the attorney be directed by the board to turn over all closed session minutes and notes to the chairperson of the library board of trustees to be assured these documents are destroyed.
Motion by E. J. Martini, seconded by D. Adcock, to direct the library attorney, to give all closed minutes and notes to the library board chairperson to be destroyed after 366 days. Motion carried.
RFQ for Legal Services – K. Ayala explained that he has received three, Requests for Qualifications, for legal services and that they are being reviewed by the RFQ committee. E. J. Martini added that a recommendation would be ready by the next library board meeting.
Lawn Mowing for the Bay County Library System – M. Gray referred to the Freedom of Information Act filed with the Bay County Library System regarding the lawn mowing at the Auburn Area Branch Library. In addition to the FOIA, he referenced an editorial in last Friday’s Bay City Times which states; ‘library leaders were guilty of approving an overt contract’ for this service. He has spoken with the former director regarding this arrangement and was told that it began in 1997 and also that it is his belief this contract for lawn mowing never came before the board. He believes that at this point, given the publicity this agreement has caused, additional follow up information needs to be gathered in order to determine exactly how it came about. M. Gray submitted to T. Burns a list of questions regarding, not only the arrangement for lawn mowing at the Auburn Branch but since this arrangement is being discussed; the board has recently been made aware of another situation regarding property in Linwood that is used by the bookmobile for one of its stops. The lawn mowing for that property is being mowed by a 15 year old minor. As library trustees who take their fiduciary responsibilities seriously, it is imperative they take a look at exactly who was hired when; by whom; and for what amount of money. In regards to the Linwood property there are issues with OSHA regulations being violated and whether 1099 forms were issued. He believes it is necessary to conduct a systematic examination regarding all arrangements made for all property owned by the Bay County Library System whether it pertains to lawnmowing, snow removal, etc.
E. J. Martini believes this type of work is considered to be the general operations of a library and does not want to get involved with it. She said that whenever staff has an issue or in need of a contract approval, they have come to the board. If the board were to be involved with the general operations of a library they could be accused of micromanaging.
M. Gray agreed with her but said when he is accused of, along with other trustees, of not holding good contracts, he wants to find out exactly what is going on. He shared that Bill Reder who has been mowing the Auburn Library branch lawn, is a good neighbor, noting the extra things he did while the construction was going on but never asked for payment. M. Gray shared a letter he received from B. Reder who offered to continue mowing the lawn at the Auburn Branch Library on a volunteer basis. M. Gray thanked B. Reder for his generous offer and referred his letter to S. List for his review and to defer any decision on grass cutting until more information could be gathered.
H. Wetters responded to E. J. Martini’s comment regarding board involvement with the general operations of the library and he too agrees, that he would not want to get involved in micromanaging the library but believes if what he has learned in the past few weeks is true would confirm the following:
1. There were at least two contracts entered into by the Bay County Library System that were never brought to the board for approval; never written; and did not follow any of the library’s financial procedures or purchasing policy.
2. In one of these instances a minor was operating power equipment, which if true, is a violation of both state and federal child labor laws and is a clear violation of OSHA standards because this
child was under 16 years of age. In addition to this, if what he was told is true, this minor was
paid out of a petty cash fund so it never came to the board’s attention. He pointed out also there
is the question as to whether 1099 forms were issued in accordance with IRS Rules and
Regulations regarding transactions with public money.
H. Wetters stated these issues he listed constitute criminal activity and as a board, now that they have been brought before the trustees and have been made manifest in part of trustees’ knowledge, there are two choices: either trustees ignore them, in which case become part of the conspiracy to do them; or trustees request and require an investigation to sort out the facts. In an effort to sort out these facts H. Wetters has submitted a Freedom of Information Act to T. Burns to request all documents; financial, written, emails, and all records related to these two contracts. He explained the purpose of submitting a FOIA request is to guarantee these documents will not be destroyed. He stated he would like to believe that staff would not destroy documents but is not necessarily confident this to be the case.
Motion by H. Wetters, seconded by E. J. Martini, to direct staff to gather the information requested by the F.O.I.A. and to answer the questions submitted by M. Gray and that this information be put in a secure place. To request as one of the first responsibilities of the new library director would be to review this material and to conduct a thorough investigation of the two contracts; present to the board an acknowledgement of any violations of law, rule or regulation that may have been committed by library staff without board knowledge and to recommend a course of action. Motion carried.
H. Wetters stated he could not condone public corporations violating state and federal law but now finds that the library has done so completely without the knowledge of the board. As a matter of fact he would argue that the staff has systematically taken actions to make sure that the board never knew this was going on.
E. J. Martini suggested looking into whether a volunteer would be covered under the library’s insurance if any type of accident would occur. M. Gray asked S. List to check into this as well while reviewing lawn mowing and snow removal services and report back to the board.
ADJOURN
Motion by H. Wetters, seconded by D. Adcock, to adjourn the meeting at 6:22 p.m.
_________________________________ _____________________________
Derald Adcock Bev Humerickhouse
Secretary/Treasurer Recording Secretary