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HomeMy WebLinkAbout1994-12-12 MinutesMinutes Fayetteville Public Library Board of Trustees Meeting 12/12/94 at 3:00 p.m. Attending: Mark Burdette, Jeff Koenig, Carol Phillips, Anne Prichard, Michael Thomas - Trustees; Linda Harrison - Fayetteville Public Library Director; Karen Duree - Ozarks Regional Library Director; June Jefferson, Lolly Maxey, Susan Sissom - Staff; Michelle Parks - Northwest Arkansas Times President Thomas called the meeting to order at 3:00 p.m. The Board went into a Special Meeting at 3:03 p.m. for the review of Bob E. Hall's report on the Library's Pension Plan - Required Amendment and Restatement, dated 12/11/94. Minutes for the Special Session of 11/29/94 were accepted as presented. (Phillips, Burdette) Dr. Hall presented to the Board the qualified Pension Plan, with its three tax advantages: no income needs to be reported until monies are removed from the plan, no income tax is paid on the earnings from money invested by the trustee, monies in a qualified plan can be rolled over into an IRA when an employee retires. When the Library was ommitted from the revised 1981 City Plan, the Library adopted to have a separate plan. Every provision in the Library Plan is exactly the same as the City Plan since 1981. Every four or five years, some revisions and amendments are required by law but no major changes are made. The Library Plan now needs to be restated and amended again for 1994/1995 to remain qualified. There are no changes that affected the cost to the Library or the City. Since 1981, Hall's firm, Hall, Sloan & Associates, Inc., has administered the plan but in 9/30/92 they sold their pension administration firm to Worthen Trust Co. and since that time have continued to work with the Library and Worthen to enroll employees and help other employees make decisions, if they are retiring, etc. In 1992, the City made some changes not yet made by the Library and in 1993 the City went out of state for their present pension plan. Page two, item five, lists ten provisions to be amended as of 12/31/94 (retroactive to 1/1/89) to keep the Plan qualified. Jefferson noted some eligibility and contribution changes will be made in 1996 so that the Library's 1995 budget will not be affected. The Board voted that eligibility goes to one year effective 1/1/96 and vesting will be 100% upon entry effective 1/1/95 and employer contribution will stay the same 6%. The Non -Qualified Plan, page four, will be added 1/1/95. (Koenig, Burdette) The Board also voted to combine both plans into one bank, Worthen, with the Library Board setting the parameters in its capacity as non -discretionary trustees. (Burdette, Phillips) Jefferson discussed the changes needed in the retirement section, page six, of the Library's Personnel Policy. She will bring that rewritten section to the next meeting. The Board then approved further changes in the Library's Policy Manual. (Koenig, Burdette) At 3:00 p.m. January 9th, the Board will continue these revisions before the regular Board meeting at 4:00 p.m. The Special Meeting adjourned at 4:00 p.m. (Phillips, Burdette) The Regular Meeting was called to order at 4:05 p.m. by President Thomas. Minutes for 11/14/94 were approved with the addition to the end of paragraph seven on page two of: Countywide 34,694 votes were cast but 3,666 or 11% had no vote on the millage. (Koenig, Phillips) 2 Correspondence included a letter of thanks from Maxey (11/11/94) to Ladeana Mullinix of the Fayetteville Friends and a letter from Harrison (11/15/94) to Karen Gosser about the reconsideration of a video. Following a memo from Harrison (11/16/94) to Susan Baerg Epstein about overdues management, Epstein promised to be in touch with Harrison by 12/19/94 possibly with a specific recommendation. Harrison also thanked Charles Bilbe by letter (11/21/94) for his generous contribution to the Library. Thomas has replied for the Board to Charles Bilbe's letter in the Northwest Arkansas Times with a letter to the Editor. There was a brief discussion of the one discretionary mill which the City might assign to the Library. Presently one discretionary mill goes to the police and fire departments. Koenig suggested that if patrons want to contribute their millage share to the Library, they can donate 1% of their assessed property tax. Harrison presented the Statistical and Financial Reports for November 1994. The typo "223,800" was corrected to "23,800" in the right column of the Statistical Report. Thomas reminded the Board to give their volunteer hours to Jefferson before the year-end Statis- tical Report. Almost $600 has been received just from copiers. On page one of the General Ledger, item 1011 records the refund from the Millage Committee. The Reports were approved. (Prichard, Burdette) Harrison provided a checklist for organizing a volunteer program which shows that the (Library has a lot of work to do before;a totally organized program can be in place. Three items on the list have already been accomplished: benefits of the program, volunteer application forms (which will be revised to ask for special areas of interest) and time sheets. Burdette asked about the reimbursement policy and whether other organizations have similar volunteer arrangements in place. No other local libraries have anything as structured as this. Thomas mentioned liability and the interns used by the City. Harrison has already discussed liability issues with the City. If a volunteer is hurt on the job the City is liable. Burdette wondered if a committee should be set up to start on these problems - perhaps a task force of Staff, Board members and volunteers. Thomas knows someone who would be delighted to take over. He felt the Staff must be involved. Harrison has met with the City Prosecutor who is willing to send letters to overdue "delinquents" who ignore all Library efforts to retrieve their overdue materials. The Library will send the offenders names to the Prosecutor's Office which will notify them. Warrants could be issued for the offenders to appear at the Small Claims Court. Concerning the reduction of services and hours in 1995 and the $115,000 shortfall in the 1995 budget, Harrison and Thomas have met with -City officials. Mayor Hanna, after receiving all the 1995 budgets, has found about $67,000 more than expected. He offered about $43,000 to the Library which leaves a new shortfall of about $73,000. Harrison noted that this means the Library still must reduce hours. Staff have recommended closing Monday and Wednesday evenings and all day Saturday. Without a formal poll, it is a general Staff impression that most Saturday patrons come from the County where the millage failed to pass. The Library is not trying to hurt any patrons and this choice of which days to close was already discussed by the Board half a year ago,before the millage vote. Thomas felt the Board should make a motion based on the Staff recommendations subject to further discussions with the City Council about other funding possibilities. Koenig thought this should be presented to the City Council as an alternative, then ask their position. In previous discussions with the Council, he has mentioned the possibility of receiving one mill, discretionary, from the City, provided the Library would be kept open. Harrison recounted some of the history leading up to the closing decisions. Koenig noted that since Fayetteville citizens voted, two to one, for the millage the City Council has the power to place that discretionary mill now which would not be received until 1996. He asked the Board what they are offering the City. If the Library asks the City to dedicate a mill, the City should be given an incentive by taking its reserve funds to use for the 1995 shortfall. Burdette felt that these were two separate issues: one, whether the Minutes Fayetteville Public Library Board of Trustees Meeting 12/12/94 at 3:00 p.m. Attending: Mark Burdette, Jeff Koenig, Carol Phillips, Anne Prichard, Michael Thomas - Trustees; Linda Harrison - Fayetteville Public Library Director; Karen Duree - Ozarks Regional Library Director; June Jefferson, Lolly Maxey, Susan Sissom - Staff; Michelle Parks - Northwest Arkansas Times President Thomas called the meeting to order at 3:00 p.m. The Board went into a Special Meeting at 3:03 p.m. for the review of Bob E. Hall's report on the Library's Pension Plan - Required Amendment and Restatement, dated 12/11/94. Minutes for the Special Session of 11/29/94 were accepted as presented. (Phillips, Burdette) Dr. Hall presented to the Board the qualified Pension Plan, with its three tax advantages: no income needs to be reported until monies are removed from the plan, no income tax is paid on the earnings from money invested by the trustee, monies in a qualified plan can be rolled over into an IRA when an employee retires. When the Library was ommitted from the revised 1981 City Plan, the Library adopted to have a separate plan. Every provision in the Library Plan is exactly the same as the City Plan since 1981. Every four or five years, some revisions and amendments are required by law but no major changes are made. The Library Plan now needs to be restated and amended again for 1994/1995 to remain qualified. There are no changes that affected the cost to the Library or the City. Since 1981, Hall's firm, Hall, Sloan & Associates, Inc., has administered the plan but in 9/30/92 they sold their pension administration firm to Worthen Trust Co. and since that time have continued to work with the Library and Worthen to enroll employees and help other employees make decisions, if they are retiring, etc. In 1992, the City made some changes not yet made by the Library and in 1993 the City went out of state for their present pension plan. Page two, item five, lists ten provisions to be amended as of 12/31/94 (retroactive to 1/1/89) to keep the Plan qualified. Jefferson noted some eligibility and contribution changes will be made in 1996 so that the Library's 1995 budget will not be affected. The Board voted that eligibility goes to one year effective 1/1/96 and vesting will be 100% upon entry effective 1/1/95 and employer contribution will stay the same 6%. The Non -Qualified Plan, page four, will be added 1/1/95. (Koenig, Burdette) The Board also voted to combine both plans into one bank, Worthen, with the Library Board setting the parameters in its capacity as non -discretionary trustees. (Burdette, Phillips) Jefferson discussed the changes needed in the retirement section, page six, of the Library's Personnel Policy. She will bring that rewritten section to the next meeting. The Board then approved further changes in the Library's Policy Manual. (Koenig, Burdette) At 3:00 p.m. January 9th, the Board will continue these revisions before the regular Board meeting at 4:00 p.m. The Special Meeting adjourned at 4:00 p.m. (Phillips, Burdette) The Regular Meeting was called to order at 4:05 p.m. by President Thomas. Minutes for 11/14/94 were approved with the addition to the end of paragraph seven on page two of: Countywide 34,694 votes were cast but 3,666 or 11% had no vote on the millage. (Koenig, Phillips) 2 Correspondence included a letter of thanks from Maxey (11/11/94) to Ladeana Mullinix of the Fayetteville Friends and a letter from Harrison (11/15/94) to Karen Gosser about the reconsideration of a video. Following a memo from Harrison (11/16/94) to Susan Baerg Epstein about overdues management, Epstein promised to be in touch with Harrison by 12/19/94 possibly with a specific recommendation. Harrison also thanked Charles Bilbe by letter (11/21/94) for his generous contribution to the Library. Thomas has replied for the Board to Charles Bilbe's letter in the Northwest Arkansas Times with a letter to the Editor. There was a brief discussion of the one discretionary mill which the City might assign to the Library. Presently one discretionary mill goes to the police and fire departments. Koenig suggested that if patrons want to contribute their millage share to the Library, they can donate 1% of their assessed property tax. Harrison presented the Statistical and Financial Reports for November 1994. The typo "223,800" was corrected to "23,800" in the right column of the Statistical Report. Thomas reminded the Board to give their volunteer hours to Jefferson before the year-end Statis- tical Report. Almost $600 has been received just from copiers. On page one of the General Ledger, item 1011 records the refund from the Millage Committee. The Reports were approved. (Prichard, Burdette) Harrison provided a checklist for organizing a volunteer program which shows that the (Library has a lot of work to do before;a totally organized program can be in place. Three items on the list have already been accomplished: benefits of the program, volunteer application forms (which will be revised to ask for special areas of interest) and time sheets. Burdette asked about the reimbursement policy and whether other organizations have similar volunteer arrangements in place. No other local libraries have anything as structured as this. Thomas mentioned liability and the interns used by the City. Harrison has already discussed liability issues with the City. If a volunteer is hurt on the job the City is liable. Burdette wondered if a committee should be set up to start on these problems - perhaps a task force of Staff, Board members and volunteers. Thomas knows someone who would be delighted to take over. He felt the Staff must be involved. Harrison has met with the City Prosecutor who is willing to send letters to overdue "delinquents" who ignore all Library efforts to retrieve their overdue materials. The Library will send the offenders names to the Prosecutor's Office which will notify them. Warrants could be issued for the offenders to appear at the Small Claims Court. Concerning the reduction of services and hours in 1995 and the $115,000 shortfall in the 1995 budget, Harrison and Thomas have met with -City officials. Mayor Hanna, after receiving all the 1995 budgets, has found about $67,000 more than expected. He offered about $43,000 to the Library which leaves a new shortfall of about $73,000. Harrison noted that this means the Library still must reduce hours. Staff have recommended closing Monday and Wednesday evenings and all day Saturday. Without a formal poll, it is a general Staff impression that most Saturday patrons come from the County where the millage failed to pass. The Library is not trying to hurt any patrons and this choice of which days to close was already discussed by the Board half a year ago,before the millage vote. Thomas felt the Board should make a motion based on the Staff recommendations subject to further discussions with the City Council about other funding possibilities. Koenig thought this should be presented to the City Council as an alternative, then ask their position. In previous discussions with the Council, he has mentioned the possibility of receiving one mill, discretionary, from the City, provided the Library would be kept open. Harrison recounted some of the history leading up to the closing decisions. Koenig noted that since Fayetteville citizens voted, two to one, for the millage the City Council has the power to place that discretionary mill now which would not be received until 1996. He asked the Board what they are offering the City. If the Library asks the City to dedicate a mill, the City should be given an incentive by taking its reserve funds to use for the 1995 shortfall. Burdette felt that these were two separate issues: one, whether the 3 Library will stay open, and obviously not having the money the Library must close and the other issue is to go back to the City over a period of time to negotiate whatever can be negotiated. Koenig responded that if the Board wants to close the Library, there is no rush to negotiate. Phillips observed that the longer the Library waits the longer until any money is received. Koenig again urged the Board to offer the City some purposefu action, to keep the Library open, if the City will make a decision quickly about the discretionary mill which would then replace Library reserve funds used to keep the Library open in 1995. Thomas noted that the Board agreed to wait until the new City Council meets in 1995. Phillips reminded the Board that the Library, during the millage campaign, had told County residents that if the millage failed the Library must close for lack of funds. The millage failed, not in Fayetteville, but at the polls. Koenig was willing to use Library discretionary funds if he knew the City would approve a discretionary mill for the Library, even if the Board is not willing to do this until they see the revenue of a City mill. Phillips talked about the shortfall of about $17,000 from 1994 and about $73,000 from the 1995 budget for a total of about $90,000. Burdette knows that the sense of urgency has been presented to the City a number of times and the Library has been passed over as if the Library were crying wolf. Phillips remembers that Kevin Crosson's comment was that Washington County should be kicking in more money. Thomas called attention to the fact that the City had earlier promised its residents that no more discretionary mills would be levied withouta vote of the people. Now, we have a new City Council and the citizens of Fayetteville are on record over- whelmingly voting for the millage. Thomas knows that the Board feels so strongly about this that they would be willing to commit their own reserve funds if they knew a City mill to be received in 1996 would replace these funds. Koenig noted that the police and fire departments asked for a 2 mill each for additional staff. Each mill presently generates about $273,000 before any property tax reappraisals are made. The Board adopted the previously discussed hours of closing recommended by the Staff. Beginning in 1995, the Library will be open Monday, Wednesday, Friday 9 a.m. to 5 p.m. and Tuesday and Thursday 9 a.m. to 7 p.m. About $73,000 would be saved by the reduction of hours so that the Library can stay within its 1995 budget. (Burdette, Koenig) Phillips thought the Board should hear what the City has to say before committing the Library in any way. Koenig still felt keeping the Library open presents the best good faith effort. Thomas reminded the Board that at the City budget meeting he made a point that the people of Fayetteville spoke for the millage and that the slogan of the State of Arkansas is: The People Rule. City officials know the Library will be asking for more money. Phillips said all Koenig needs to do is to make a motion to use Library unrestricted reserve funds but she strongly felt these monies are an endowment for the future of the Library and should not be used for lights, water and gas. Thomas noted that a mill would more than cover any reserve funds used if the Library keeps on the target budget track. He knows the City has been listening to the Library and is doing what it can to help given their own limitations. The Board approved asking the City to commit a discretionary one mill for the Library if the Library was committed to stay on their budget track. (Phillips, Burdette) Koenig then moved that the Library offer as part of the negotiation that at such time that the City approves the oneiiscretionary mill for the Library, the Library rescind their Monday, Wednesday and Saturday closures and that the deficit would be funded from the Library reserve funds and those funds would be replaced immediately upon receipt of the revenue funds. There was no second to this motion. Harrison and Phillips agreed this issue could not be approached at the Council's first meeting. Jerry Rose, City Attorney, needs to draft a resolution after the Library's initial approach to be on a Council agenda. Duree reported that the Washington County Library Board has agreed to send letters to the Govdhor and the State Legislators from this area to encourage them to increase State Aid to Public Libraries. Local Boards should also send letters to their State Legislators and the Govehor. Thomas will send these letters. Burdette thought the discussions about closing smaller County libraries should be included in these letters. Duree added that the County Board Chairman, Peg Anderson,felt it would be a good idea for the Boards of Elkins, Greenland, Winslow, Prairie Grove, Lincoln and West Fork to meet to talk about Fayetteville Board members suggesting that these small libraries might close or reduce operations. A July 1994 ORL study showed that the Springdale and Fayetteville libraries are subsidizing those libraries' operations,services and materials. About $26,000 is given more than is received from those areas in taxes. $62,500 is now paid out in salary from ORL, plus other Regional expenses. If those six libraries closed, they would not need $30,000 for their children's librarian. About $100,000 would be saved if their delivery truck was stopped and this expense added to the above figures. Circulation for these libraries is about 100,000 a year, mostly from the over 30,000 each from Lincoln and Prairie Grove. West Fork and Winslow were the only areas to pass the millage. All these communities do pay taxes to ORL. The Washington County Library Board will meet January 25th. Phillips understands that the County Board has the responsibility to make decisions about their libraries. Thomas mentioned that all the County Board agreed that we can not ask again for another county millage. Koenig added that it would be a waste of time and money. The Board adjourned at 5:20 p.m. (Koenig, Prichard) Submitted by, ,t Anne Prichard, Secretary Follow-up reports will be given by: Jefferson - revision of page six of the Personnel Policy Harrison - report from Epstein on overdues management Board - volunteer hours to Jefferson ' - letters about State Aid to Public Libraries to the Governor and State Legistators Aagetfetiillr Public `Ciibrarg 217 EAST DICKSON STREET FAYETTEVILLE, ARKANSAS 72701 Board of Trustees Special Session December 12, 1994 3:00 p.m. There will be a special called meeting held at the above time and date to discuss policy revisions. We will need to concentrate on the Retirement Plan portion of the policy. Bob Hall, of Hall, Sloan Associates will be presenting information regarding modifications that must be made to our plan before Dec. 31, 1994. Also, Mr. Hall will be giving us information regarding changes the City made to their plan that used to be identical to ours.