MINUTES OF THE
BAY COUNTY LIBRARY SYSTEM
BOARD OF TRUSTEES
REGULAR BOARD MEETING
September 28, 2005
Ella Jane Martini, Chairperson, called the regular board meeting of the Bay County Library System Board of Trustees to order at 5:18 p.m. on September 28, 2005 in the County Commission Chambers, Bay County Building.
Roll call present: Derald Adcock, James Davison, Mark Kaplenski, Ella Jane Martini and
Howard Wetters
Other: Georgianne Adcock, Kevin Ayala, Marilyn Kaeckmeister, Steve List,
Fred Martini, Fred Paffhausen, Eileen Schulz, Denise Trudell,
and Sarah Wohlschlag
Ella Jane Martini called for a moment of silence for long time employee, Joann Irvine, who passed away unexpectedly on September 22, 2005.
MINUTES
Motion by J. Davison, seconded by M. Kaplenski, to approve the minutes of August 24, 2005 Regular Board meeting, September 9, 2005 Special Meeting and September 9, 2005 Closed Session Meeting. Motion carried.
BILLS PAYABLE
Motion by D. Adcock, seconded by J. Davison, to approve the bills as presented, numbered: 34609-34761 and 4270-4287, for a total payment of $298,478.57. Motion carried.
FINANCIAL REPORT
August 2005 Financial Report
August 2005 Penal Fine Report – Kevin Ayala reported that finances are in good shape; the anticipated revenue from property tax receipts are coming in as budgeted. The Penal Fines for August came in at $32,248.80 which, although is higher than the adjusted budget of $22,500, are below what they were last year at this time.
Motion by D. Adcock, seconded by H. Wetters, to receive the August 2005 Financial Reports and August 2005 Penal Fines. Motion carried.
Loss of State Revenue – K. Ayala reported he has recently become aware that the State of Michigan will be reducing what the Library receives in state aid down from $.439/capita to $.359/capita. This represents an 18% reduction from this year to next year for State Aid. The state is anticipating additional cuts as they look at their budget process for 2007. In addition to this reduction, K. Ayala has also been monitoring what the State will be doing to replace, if at all, the Single Business Tax as it is already known that it will be phased out soon. The loss in revenue once the SBT is phased out without anything to replace it, along with further possible reductions in State Aid for 2007, could mean a decrease of approximately $140,000 in the next couple of years. Howard Wetters commented that as these anticipated cuts would affect next year’s budget, suggested to wait until the end of the year before any adjustments are made to the budget. K. Ayala agreed; adding that the reductions could be more or less than the anticipated 18%. H. Wetters asked K. Ayala that although it is confirmed that there is enough funds available to finish the construction projects, to bring back to the next Finance Committee meeting, an account of what is intended to be spent on each of the branches and the total funds available through the end of the year.
DIRECTOR’S REPORT
Fred Paffhausen commented that the assistance he received from City Manager, Robert Belleman, Steve Black and others at the City, to get the work done for the Battery Park lease, easements and other approvals, was greatly appreciated. These items will be discussed later in this meeting.
Mark Kaplenski commented on the reports from each of the Managing Librarians and Department Head of the Bookmobile. He shared that he looks forward to reading these reports each month as they help him understand the day to day operations in each of the branches. He pointed out in the Pinconning Branch report that the Lang family donated paintings to the branch and he thanked them for their donation. Also after reading the report from the Bookmobile Department Head and seeing the number of children who took part in the Summer Reading Program, applauded the work the bookmobile does do as an outreach services throughout Bay County. He believes the bookmobile to be a valuable asset to the community.
E. J. Martini questioned the absence of any report on Teen reading programs from that report. F. Paffhausen explained that with summer ending and school just beginning, programs have not gotten underway. He pointed out that the finishers for the Teen Summer Reading Program had been included in last month’s board packet.
Motion by D. Adcock, seconded by J. Davison, to receive the Director’s Report. Motion carried.
OPEN TO THE PUBLIC
Georgianne Adcock requested that some sort of recognition for long time employee Joann Irvine be placed in the Children’s area at the Pinconning Branch Library in memory of her. J. Irvine passed away on September 22, 2005. In response to G. Adcock, the board thanked her for her suggestion and assured her it would be discussed at the next Finance Committee meeting.
CORRESPONDENCE
Please Tell Us What You Think – Lyle Crispen and Lilly Kowalski
Thank You from Pinconning Branch Library Manager – Tracie Compton thanked the board for closing the Pinconning Branch Library in respect for Joann Irvine’s funeral and for offering the empty bank building for the dinner afterward.
Motion by H. Wetters, seconded by J. Davison, to receive the correspondence. Motion carried.
COMMITTEE REPORTS
Personnel Committee – James Davison, Chairperson
No Meeting – No Report.
Finance Committee - Howard Wetters, Chairperson
Increase Mileage Reimbursement and Meal Allowance – H. Wetters asked for a motion to approve the increase for mileage reimbursement and meal allowance for employees. He noted the IRS has increased mileage reimbursement to the end of the year and the Finance Committee is asking to increase the allowance to match, knowing that in January, 2006, there will be another increase to mileage reimbursement. The allowance for meal reimbursement rates have not been adjusted since 2001, the Finance Committee is asking for approval for both of these increases.
Motion by H. Wetters, seconded by J. Davison, to approve an increase for meal allowance and an increase to the mileage reimbursement rate to correspond with that of the IRS rate of $.485/mile through the end of 2005. Motion carried.
Budget Adjustment – H. Wetters asked for approval to increase the budget for line items, Book Supplies to $5,000 and Gas, Oil & Grease to $2,000. This increase will have a net zero effect on the annual budget, as there will be a $7,000 decrease in VLC fees, due to additional libraries joining the coop.
Motion by D. Adcock, seconded by J. Davison, to adopted the budget adjustment. Motion carried.
HelpNet and Health Club Memberships – At the Finance Committee meeting, trustees asked staff to conduct a survey of the staff on their interest for membership. Trustees received a memo of the results, which will be discussed further at the next Finance Committee meeting.
To accommodate the schedule of others, the following agenda item was taken out of order.
Recommendation for Sage Branch Library Sprinkler Head - Steve List reported that after several meetings with the City of Bay City, Fire Department, architects, FTC&H, Skanska, Building Authority and Library staff, a solution was agreed upon to prevent the breaking of sprinkler heads due to cold weather at the Sage Branch Library. Competitive bids were received for this work. S. List is asking for approval to hire Winninger Fire Protection for $1,090 to remove sprinkler heads and cap piping and shorten branches in the dormers. In addition, to hire INS Insulation for $600 to fill concealed locations, exterior walls with cellulose insulation. The remaining work to be done can be accomplished in house for a cost of $50.84 for materials. The recommendation is to proceed with hiring Winninger Fire Protection and INS Insulators for a total cost of $1,740 to be funded from the overall construction contingency. H. Wetters asked that once this work is accomplished, will it prevent the freezing of sprinkler heads in the future at Sage Branch Library. S. List responded he believes it will; it was the best compromise from all parties involved. The cost of this will come from the library’s construction budget, 1 mill money.
Motion by J. Davison, seconded by H. Wetters, to approve hiring Winninger Fire Protection and INS Insulators and that funding will come from the overall construction contingency budget. Motion carried.
Closed Session to consider matters exempt from disclosure under attorney/client privilege (as provided for under PA 267 of1976)
Motion by H. Wetters, seconded by D. Adcock, to adjourn to Closed Session at 5:47 p.m.
Roll call: D. Adcock – yes; M. Kaplenski – yes; J. Davison – yes; H. Wetters – yes;
E. J. Martini – yes. Motion carried.
Trustees took a short recess to await the arrival of attorney Bill Smith. The Closed Session meeting began at 6:10 p.m. All trustees were present.
Trustees took a short recess to wait the arrival of attorney Pat Kaltenbach.
The open meeting resumed at 7:08 p.m. with Library Construction agenda items.
LIBRARY CONSTRUCTION PROJECT
Battery Park Lease – Attorney, Patrick Kaltenbach, shared that after several discussions of how the lease agreement would be structured regarding the language and description of Battery Park, is being presented this evening for approval.
Motion by H. Wetters, seconded by J. Davison, to approve the Battery Park Lease and authorize the necessary signatures. Motion carried.
Vacation of Alley – P. Kaltenbach shared that his firm has reviewed these documents; have discussed them with the City’s attorney Neil Wackerly, and have found them satisfactory.
Assignment of alley from MCI
Motion by J. Davison, seconded by D. Adcock, to accept the assignment of the alley from MCI. Motion carried.
Sidewalk Easement – Westside of Library - P. Kaltenbach stated that the easement agreement is in appropriate form, similar as the lease for Battery Park. H. Wetters verified that this agreement does not affect the American Legion. F. Paffhausen confirmed this.
Motion by H. Wetters, seconded by J. Davison, to accept the easement agreement for the west alley as it is presented and the recommendation from the attorney and to authorize the appropriate signatures. Motion carried.
Bay City Purchase Agreement
Motion by H. Wetters, seconded by J. Davison, to accept the Purchase Agreement with Thumb National Bank for the Bay City Branch Library as it has been presented and to authorize the necessary signatures. Motion carried.
Skanska Letter to Bob Redmond, Building Authority
Motion by H. Wetters, seconded by D. Adcock, to receive the letter received this evening from Skanska addressed to Bob Redmond of the Building Authority. Motion carried.
OTHER
Invoice from A. Pominville – H. Wetters stated he believes the funds for this invoice were spent unnecessarily and spent without board approval; however he will reluctantly approve payment.
Motion by H. Wetters, seconded by D. Adcock, to reluctantly pay the bill from A. Pominville and to send a letter to A. Pominville, Tom Lewand and to the Building Authority stating: (A) Bond money is no longer being spent but now spending library millage money; (B) Reluctantly pay this invoice but in the future the Library will not pay any legal fees incurred by the Building Authority unless the scope of the work and understanding of the work to be done has been pre-approved by the Library Board and (C) send a letter to the attorneys and indicate to the extent that they do, do work and it is not pre-approved they can most likely expect that they will not be reimbursed for their services.
Roll call: D. Adcock – yes; M. Kaplenski – yes; J. Davison – no; H. Wetters – yes; E. J. Martini – yes. Motion carried.
OTHER
Outside Reading Garden – Wirt Library – H. Wetters explained that there has been discussion on purchasing statues for the Wirt Library. He recently was at the East Lansing Public Library and noted the statues they have on display that have been donated by individuals. He believes it would be prudent for the Library to consider something similar for the Alice and Jack Wirt Public Library. He suggested that the board give some latitude to F. Paffhausen, S. List and himself, to see what may be available for the Library to purchase. They would not be purchasing any statues but would bring ideas and pictures of what they found to a meeting for trustees to review. E. J. Martini shared that she is aware of one statue that has been offered to the library but may not be appropriate for the Reading Garden. F. Paffhausen added there may be room at the other branches as well to display statues on the grounds. Trustees will look further into what may be available.
Pension Qualifier – P. Kaltenbach recapped from previous meetings, the draft he is presenting for approval to request an increase to the Pension Qualifier hours from 800 to 1000 per calendar year. This draft requesting this increase will be presented to the County Board of Commissioners.
Motion by H. Wetters, seconded by J. Davison, to accept the resolution for 1,000 hours and make the appropriate communications to the County, Retirement Board and any other entities that the Library Board needs to communicate with for this change to take place. Motion carried.
NEW BUSINESS
Funding the Bay County Employees Retirement System/VEBA – K. Ayala explained the company that the County Retirement Board uses for actuarial studies did a compilation through December 31, 2004. They revalued the assets, breaking it down to each individual groups of the County. Those results show that that the retirement fund is still at an over funded state. Based on new evaluations they have determined there is a need to contribute .68% more than the current 4.0% already being contributed. Beginning in October of 2005, the Library will contribute 4.68%. This increase equates to $14,500, which K. Ayala confirms, can come from the Salary category of the budget. H. Wetters asked K. Ayala to bring back to the next Finance Committee the 20 year projection and what has been built in for retirement costs in terms of what the contributions will be. K. Ayala shared that this actuarial company also shared that the amount being contributed will continue to increase over the next couple of years. It is projected that in 2006 the contribution will be at 8%, 2007 at 10 or 12%.
Motion by H. Wetters, seconded by J. Davison, to adopt the 4% and additional .68% into the regular retirement system and 0% to the VEBA for the next 12 months. Motion carried.
Pension Fund Actuarial Study Participation – K. Ayala recommended that the Board take part in this study that will project out for future years the requirements for the Library. This study will cost approximately $715.
Motion by J. Davison, seconded by H. Wetters, to participate in the Actuarial Study. Motion carried.
Motion by H. Wetters, seconded by J. Davison, to authorize the attorney to proceed as discussed in Closed Session. Motion carried.
ANNOUNCEMENTS
E. J. Martini reminded everyone of the Author’s Day being held October 1, 2005 at the Auburn Branch Library.
Motion J. Davison, seconded by D. Adcock, to adjourn the meeting at 8:00 p.m. Motion carried.
_________________________ _______________________
Derald Adcock Eileen Schulz
Secretary/Treasurer Recording Secretary