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HomeMy WebLinkAbout1997-10-13 MinutesBOARD OF TRUSTEES MEETING Fayetteville Public Library October 13, 1997 Present: Board Members: Mark Burdette, Nancy Hendricks, Maury Roberts, Steve Singleton, and Michael Thomas, Library personnel: Lolly Maxey, Lynaire Hartsell, June Jefferson, Mary Saxon, Mary Jo Godfrey, Anne Prichard, and Carolyn Diemente, ORL Director Karen Duree, and Janice Torbett and Kim Peterson of the Bank of Fayetteville. I. Call to order: Thomas called the meeting to order at 4:00 pm in the meeting room of the Fayetteville Public Library. II. Approval of minutes: Roberts moved to accept the minutes of the meetings on September 8 and September 22 as submitted and Burdette seconded the motion. Thomas stated that he had talked to Minor Wallace about the kids getting on the roof as discussed in the last meeting. Saxon suggested planting bushes with thorns on them in front of the place where the kids are climbing up to the roof. Thomas thought that was a good suggestion and thought we should ask Tina Buxton, the landscaper, about some ideas. There were no changes to the minutes of the previous meeting. All voted AYE to approve the minutes. III. Presentation by Janice Torbett and Kim Peterson of the Bank of Fayetteville. Torbett and Peterson presented an investment proposal for the interest income from the bequest of the Otwell estate. Peterson said that at this point we do not have any structure parameters, limitations, or objectives in place for this investment. The principal amount of $500,000 must remain intact, and the income from this can be used for projects. If this principal amount is not added to, in ten years with inflation it will not be worth nearly as much in terms of buying power. They were looking at putting together a program built on a total return basis. They were proposing that 600 of the return be used for expenditures, and 400 of the return be used to enhance the principal with a mix of investments like mutual funds, retail deposit notes that are FDIC insured, and long-term CD type instruments. This would give about a 6 1/2o annual growth on the $500,000 going forward. Burdette said he felt like instead of taking the $500,000 and putting it in a CD and getting 5% per year and in 20 years have the inflation-adjusted $500,000 be worth $120,000, he would like to get a decent return annually and have some growth so that in 20 years we would have something of substance. He feels like if we could get a return of 50, and take what is left over and put it in investments that will grow over time, the principal amount will grow over the years. The Bank of Fayetteville has looked for stocks with a history of growth and value; and a broad spectrum of funds with a long term track record of a good rate of return. Roberts asked if the fixed income investments were considered conservative? Peterson said they were moderate to more agressive, but since they were well diversified there was less risk. Hendricks said she was familiar with some of the mutual funds and equities and felt they were a good investment. Thomas said there was no stipulation in the will how the money was to be handled. Singleton agreed and said he has seen "conservatively managed" money mean "horrible returns", which ends up diminishing the principal through poor returns. Roberts asked if the 60-40 parameters might change. Yes, they could be adjusted according to market conditions. Thomas said the Board will draw up a resolution stating the goals for the money. Singleton said he would favor stating a 5% growth rate. Burdette said he agreed with that. Hendricks asked how often Bank of Fayetteville gave reports. Torbett said they could set it up however we wanted. Thomas stated that the amount was $500,000 and FDIC only insures for $100,000, and so what happens if the bank goes out of business. He said his understanding was that the $500,000 as it is currently being used is folded into the bank's funds. Torbett said the $100,000 only applies to bank deposits. This is not considered a deposit, but a custodial account. She said if they invest $100,000 in a bank CD, then that is covered, but if they invest in a mutual fund then it is not insured. Singleton said we give up the absolute security for the moderately greater risk of greater returns. Thomas said the $500,000 was deposited on September 26, 1997 in the Bank of Fayetteville in a Federated Money Market Trust for temporary holdings in an instrument signed by Thomas, Burdette, and Hendricks. He said there will be other investment presentations before a decision is made. IV. Correspondence - Correspondence from Harrison will be discussed in an executive session. V. Librarians' Reports: A. Statistical & Financial Reports: Jefferson noted that while circulation numbers may be down a bit, they are actually up in audio -visuals and periodicals. These are the areas where we have new things, more than in the book collection. Jefferson reminded the Board that any presentation that they make to any group as a representative of the library should go on the program attendance form. Thomas said for example when I announce at the Chamber of Commerce about our book sale, that is considered a program. This statistic has not been reported like it should have been. The salaries are up, but this will be reconciled at the end of the year, and is due to duplication of duties. B. Report on CIP funding - Thomas reported he met with Steve Davis and Kevin Crosson, and felt it went well. The budget was presented to the City Council, and the Street Department wouldn't sign off on the CIP, and so it will go to another session. Thomas noted that the unfunded request of the Library was for about $100,000, while all the city functions together requested $50 million. The results of the meeting were (1) the Book Purchases did not change, (2) the carpet replacement is in with no changes, (3) the lighting repair has gone in at $11,000 rather than $22,000 with us paying for the other half, (4) the Atrium renovation project was put off until next year, and they will try to waterproof it now, and (5) the microfilm reader -printer and the shelves will be put off. The agenda session will be tomorrow and, Thomas said he felt the City Council knows we need books. C. Automation: Jefferson reported that to use our old computers we will need to have more local area network ports. We need another $640.00 hub. Burdette moved, and Singleton seconded, and all voted AYE to spend the $640 on a new hub. Barcoding - Hartsell said we are close to having 60,000 books barcoded. Burdette asked when we can go online. Hartsell said we have been waiting for the new hub, and with the approval today we are closer. The estimated date is November 3. Discussion continued about media being here for the event. Jefferson suggested that maybe this could tie in with the birthday of the Library. The Library was born in 1916, and even though we are a senior citizen, we are going into the 21st century with enthusaism. D. ALA meeting: Maxey reported that she, Mary and Sam Saxon, Anne Prichard, and Karin Wiggins went to the meeting, and it was a very positive experience. She said she wishes more of the staff could attend this meeting, because it really makes you feel good about your job. It addressed a lot of issues such as the internet policy. Maxey said they got to tour the new library in Little Rock. Saxon said she felt that our library's childrens department was more welcoming to children, our genealogy collection far outclassed theirs, and that our reference department has as much material as theirs. Burdette said we should increase the Travel and Training part of our budget next year so more people can go to this meeting. E. Report on A & P Grant: Godfrey reported that the request was approved and seconded, but will be voted on later. Godfrey suggested that the Board call the members of the A & P Commission and Mayor Hanna and thank them for the vote of confidence. The meeting will be on the 20th at 2:00 at the Chamber of Commerce and it would be good if some representatives of the Library could be at this meeting. Melanie Stockdell and Marilyn Johnson have discussed making a Genealogical brochure promoting Genealogical tourism in Fayetteville and the area. Since we have gotten the 1920 and 1910 censuses, the number of people coming to the Genealogical collection has increased dramatically. We have seen a 2000 increase in out of town visitors in the first 3 quarters of 1997. Godfrey also stated that with this increase in visitors to the Genealogy department, the reader printer is seeing a lot of use and we need to keep in mind that we really need another one. The cost of a new one that was in the budget was $10,200. Saxon agreed, and said it is important to buy a good machine, because it is a complicated machine and expensive to fix•if it breaks. Godfrey said the Genealogy department has exchanged materials that we need and they don't want with the Mullins Library and the Shiloh Museum. When people come to our department, we give them a sheet which tells them about other Genealogical resources in the area. Jefferson said we are working with other organizations to make sure that what the A & P gives us is used to the best of our ability. VI. Board action confirming acknowledgement and disposition of Otwell estate settlement: Thomas presented a copy of the check for $500,000, deposit receipt, receipt of the distributee which is the attorney, and acknowledgement of receipt. The Board will have to draw up a document of the requirements in handling of this fund. The review committee will be the Board. The money was deposited in a Money Market account at the Bank of Fayetteville as discussed in section III. VII. Board action for Bank of Oklahoma files confirming current investment guidelines and direction: Jefferson said the letter we have is sufficient if the Board agrees, she will type on the letterhead and have the Board sign. Burdette moved that we accept moving the retirement money to the Bank of Oklahoma and name them Trustee of the account, Roberts seconded, and all voted AYE. Thomas said there have been two executive sessions since our last meeting to discuss personnel matters. The first was on October 1 4:00 to 6:00 with Burdette moving to go into executive session, and Singleton seconding the motion. Burdette moved to close executive session and return to regular session, and Singleton seconded. There was no announcement. The second session was on Friday October 10 2:00 to 4:30 with Burdette moving to go into executive session and Singleton seconding the motion. Burdette moved to close executive session and return to regular session and Singleton seconded. Thomas notified the press about these sessions and also stated in his note that from time to time over the next two weeks, two or more board members expect to have informal interviews with candidates for Library Director. These are with out of town candidates, getting to know them, and showing them Fayetteville, and if more information is needed under FOI, please let him know. Any announcement will be given by Thomas within the hour. VIII. Trustee's/Committee Reports: A. Treasurer's Report: Hendricks reported a $75.00 memorial deposit, and a CD which was rolled over into another 7 month CD. This is with Mcllroy and is designated for Long Term Development. B. Alternative fund raising: Singleton reported we finally got a Morningstar subscription from Charles Schwab. He said two of our magazine sponsors have dropped out and he is looking for other sponsors. The staff needs to decide which magazines that we have are worth keeping in terms of patron interest and which should be dropped. C. Long term planning: Roberts asked Duree if we have heard anything about the task force. Duree said the request for proposals for a consultant has gone out, and 14 people have responded, but no one has returned a proposal. The deadline is November 2. D. Volunteers: Burdette reported that the Friends Book Sale is October 23, 24, and 25. Thomas reminded everyone to announce this at any group function they attend. IX. Other Business: Duree reported that 10 libraries are on the system. We hope to have them all up before Thanksgiving. Jefferson said the City Council Tour was good and thanked the Board for arranging it. Duree was asked about how many County employees park regularly in our parking lot. She said she knows of 2 who park there every day and there are about 5 other people who use it on a regular basis. However, when there is jury orientation, the whole lot is full and our patrons cannot find a place to park. Burdette asked if this could be brought up at a full staff meeting. X. Adjournment: Burdette moved to go into executive session, and Roberts seconded, and all voted AYE. Respectfully submitted by Carolyn Diemente.