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Home My WebLink About2012-06-11 - Agendas - FinalFAYETTEVILLE PUBLIC LIBRARY Suzanne Clark, President Elizabeth Jordan, Vice President Maylon Rice, Treasurer We inspire imagination and foster learning Board of Trustees June 11, 2012 4 pm AGENDA Regular Meeting Ann Henry Board Room Kim Agee, Secretary Brenda Boudreaux Dan Ferritor Susan Graham I. Call to order II. Special presentation III. Minutes A. Approval of minutes 1. April 16, 2012 regular meeting — page 2-3 B. Signed minutes 1. February 27, 2011 regular meeting -- page 4 IV. Reports A. Management reports 1. Key upcoming events — to be distributed 2. April — May Strategic Plan progress — page 5-6 3. April — May 2012 Performance Measures — page 7 B. Financial reports 1. Profit & Loss Budget vs. Actual through April — page 8-13 2. Profit & Loss Budget vs. Actual through May - to be distributed V. Old business: Nominating Committee Report VI. New business A. GiftWorks revisited B. New accounting software and budget format changes — page 14-15 C. Annual Report D. NEH update — to be distributed E. Gala premiere closing — page 16 F. Accept and appropriate grant and donation funds 1. Schmieding Foundation 2. Dept. of AR Heritage 3. Advertising & Promotion G. Approval of $334,980 transfer from city into FPL budget — page 17-19 H. Benefits brokerage change — page 20 I. Updating records with financial institutions — page 21 J. Retirement Plan changes — page 22-23 K. Bank of Fayetteville Certificate of Deposit — page 24 L. Dunaway estate — page 25-57 VII. Executive Session (Johnson 3 month review) VIII. Adjournment FPL press Fayetteville Public Library Board of Trustees Regular Meeting April 16, 2012, 4 pm Minutes Prepared by S. Daniel, Office Manger Board members present: K. Agee, B. Boudreaux, S. Clark, D. Ferritor, S. Graham and M. Rice. Board member absent: E. Jordan. Staff present: D. Johnson, L. Speer, S. Foley, S. Palmer, L. Yandell, C. Walsh, L. Greenwood, and S. Daniel. Others present: Judge R. Moore, L. Brewer, M. Malone, R. Riley of BKD, and Joel Walsh of the NWA Times. I. The Board of Trustees meeting was called to order at 4 pm. by S. Clark. II. Swearing in of new board members: Judge Rudy Moore swore in B. Boudreaux and S. Graham for 5 year terms. Special presentation of framed photos of FPL to retiring board members L. Brewer and M. Malone IV. Minutes: Approval of minutes: D. Ferritor moved to approve the minutes of 2.27.12; K. Agee seconded. All voted AYE. V. Special recognition of Lynn Yandell named as a "Mover and Shaker" by the Library Journal. VI. Reports A. Management Reports 1. Key upcoming events: For the first time, the SRP calendar combines children, teen and adult programs into one document. The adult SRP, funded in part by an NEH grant, wit be "Ancient Greeks Modem Lives." Children's programming will include Three Penney Acre, Shout Lulu, Chase Missy, a mobile aquarium, Activated Story Tellers, and Tommy Terrific and will conclude with Trout Fishing in America. All youth librarians will be starting school visits promoting SRC sign up. 2. February -March strategic plan progress: Authors Clare Vanderpool and Tracy Kidder drew large audiences. The Otwell Teen Library has received an award; another is possible. IMacs with Adobe Creative Suite have been deployed to the adult computer lab. 3. Performance measures: Digital check-outs are up 82%. Digital items added to the collection are down because prices have become prohibitive. Programs presented are up 50%. IT staff are looking for a way to measure Wi-Fi usage. B. Financial Reports: Legal expenses appear to be high in the March report, but there is an error in our budget line item. It will be corrected by the next Board meeting. VII. New Business A. Memo: Budget adjustments due to grants received: M. Rice moved to approve the staff recommendation; B. Boudreaux seconded. All voted aye. B. NEH update: The reconciliation report, prepared by R. Riley and H. Bradberry, examined assets, expenditures, and balances at Garrison Financial. NEN donations of $1,508,036 have been certified, $400,000 in match has been received from NEH for a total of $1,908,036 in estimated net assets. As of 12.31.11, $247,648 of the bridge money had been spent and there has been a gain of $70,021 for net assets of $1,730,409, Of the $1.73 million, $960,798 is invested at Garrison, and pledges due total $543,000. With defaults, almost $300,000 remains to be raised by 7.31.12. C. "Up Among the Hills" Gala: Plans call for clearing level 300 to hold over 400 people for a ticketed, black tie optional event. The Foundation will front expenses but sponsorships and live and silent auctions will restore costs and turn a profit. Vista Productions will provide audio visual support; Eventures will supply elegant seating, chairs, and a red carpet. There will be a pre -event reception at KUAF. D. Staff raises: Historically, FPL has instituted hiring freezes and raises consistent with the city of Fayetteville. Following 3 years of no raises, this plan provides 4% increases. The plan assumes all positions are filled and new hires come in at the mid range of their salary grade. The proposal is sustainable through 2013; budget projections are not available for 2014. M. Rice moved to approve the 4% raise proposal as recommended; K. Agee seconded. All voted AYE. Discussion: M. Rice noted that FPL has never come close to using the entire personnel budget. There is an unfunded liability resulting from large accruals of sick leave and PTO for several staff members. Question called; all voted AYE. E. Library audit: Audit opinion was clean. Assets increased over 2010 to $24,362,168. Expenses were higher than in 2010 due to the costs associated with transitioning to a new ED, but revenues exceeded expenses by $945,478. The library is in compliance with its investment policy. Adjustments were made to net assets, fixed contributions, accounts payable, depreciation, and disposal of fixed assets. One deficiency was communicated orally to management. Auditors recommended integrating the budget into QuickBooks and using project codes to distinguish revenues and corresponding expenditures to better track spending of grants and other specific revenue sources to ensure they are spent for their designated purpose. 2 F. Foundation Audit: Audit opinion was clean. Net assets are now classified into 5 areas: nonspendable (e.g. Otwell), restricted, committed, (board could decide to set aside), assigned money, and unassigned (to pay general expenses). Net assets and income have gone up; liabilities and expenses have increased a little. The reconciling item, $95,000, represents the NEH film that is not yet completed; it will become a library asset when finished. The foundation was in compliance with its investment policy. Related party notes: The Foundation keeps money at a bank headed by a Foundation Board member; the spouse of a library staffer is a Foundation vendor. A material weakness was noted: GiftWorks, the software which tracks pledges, was not reconciled monthly to the general ledger. G. Open positions update: Stephen Davis has been hired as Manager of Accounting and Human Resource Services. A hiring committee has identified 4 candidates for further consideration for the marketing position. H. Appointment of a nominating committee: D. Ferritor and K. Agee will recommend officers for the coming year. VIII. Adjournment: D. Ferritor moved to adjourn; M. Rice seconded. All voted AYE. Meeting adjourned at 5:22 pm. 3 Fayetteville Public Library Board of Trustees Regular Meeting February 27, 2012, 4 pm Minutes Prepared by S. Daniel, Office Manager Board Members present: K. Agee, L. Brewer, S. Clark, D. Ferritor, M. Malone, and M. Rice. Staff present: D. Johnson, L. Greenwood, L. Speer, S. Palmer, L. Mandell, C. Spaulding, W. Fitzgibbon and S. Daniel. Others present: Joel Walsh of the NWA Times. The Board of Trustees meeting was called to order at 4 pm by M. Rice. 11. Minutes A. Approval of minutes: D. Ferritor moved to approve all the minutes at one time; K. Agee seconded. All voted aye. D. Ferritor moved to approve the minutes. L. Brewer seconded. All voted aye. 111. Reports A. Management Reports 1. Key upcoming events: C. Spaulding distributed copies of the Wanderer, FPL's youth literary magazine. Other youth events include Read across America, Trike Theatre, McCafferty Irish Dancers, a spring break movie festival, Newbery award-winning author Clare Vanderpool and Free Comic Book Day. W. Fitzgibbon noted adult programming including Tracy Kidder, the RFS signature event for 2012. The Civil War Series is concluding in April with programs on researching government documents, a presentation by Crystal Bridges about rare books, and authors Nancy Dane, and Grif Stockley. KUAF is hosting a reception for David Johnson on March 27, 2. D. Ferritor moved to generously and happily welcome the new ED to this meeting - intended to be the first of many, many, many, many more! K. Agee seconded. All enthusiastically voted aye. 3. Strategic Plan progress: All objectives for the previous year have been completed. 4. December 2011 performance measures: D. Johnson noted circulation statistics—digital books in particular - are up 20%. This increase is due partly to the decrease in fines on DVDs and greater turnover due to reduced checkout times. FPL gets new movies out the same day they are available in stores. 5. January 2012 performance measures: no questions or discussion. B. Financial Reports 1. December 2011 budget comparison: no questions or discussion. 2. January — December 2011 profit & loss: no questions or discussion. 3. January 2012 budget comparison: no questions or discussion. 4. January 2012 profit and loss: no questions or discussion. IV. Old Business A. Update on electronic resource statistics: E -resource statistics have shown a decrease due to a glitch with Novelist when FPL upgraded to Polaris 4.0. Also, e -resource companies have changed the way they count items. FPL will re -baseline Novelist and break it out as a separate line in the statistics. V. New Business A. Memo: Budget adjustments from 2011 to 2012: M. Rice moved to approve the staff recommendation; L. Brewer seconded. All voted aye. B. Memo: Purchases with library credit cards: M. Rice moved to approve the staff recommendation. D. Ferritor seconded. All voted aye. C. Change to policy LO — M. Rice moved to approve staff recommendation with the caveat that staff mail a "tracked changes" version for their review; M. Malone seconded. All voted aye. Future policy changes will be presented to the board in the "tracked changes" format. D. 2011 Survey Week Review: The scale of the graph, even though it shows 1-16, is really 1-10. FPL rated higher than 90% in all categories. E. NEH Gala: Deadline for NEH Grant is July 31 with $240,000 left to raise. Bill Clinton has agreed to narrate "Up among the Hills." A gala premiere for 500 will be held Friday, October 19, 2012. F. D. Johnson noted he is in discussion with KUAF about mounting their tower, unobtrusively, on FPL's building. Final plans would be presented to the board for its consideration. D. Ferritor moved that the board consider the installation of the tower at a later date including the possibility of a special meeting, if necessary; M. Rice seconded. All voted AYE. G. D. Johnson thanked D. Ferritor for involving Skip Rutherford in the initiation of cooperative efforts between FPL, the Clinton School in Little Rock, and the Diane Blair Center at the University of Arkansas. VI. Adjournment: M. Rice moved to adjourn; L. Brewer seconded. All voted AYE. Meeting adjourned at 4:54 pm. Sc-- 1'AYETCEVILLE PUBLIC LIBRARY Strategic Plan Progress Report April — May 2012 Purpose: We inspire imagination and foster learning. Programs & Services: We offer inspiring and relevant programs and services that engage the community's curiosity, provide opportunities for education and self-improvement, and serve as the gateway to the library by addressing the diverse needs and interests of our community. a. Programs 1. Hosted Reading with the Razorbacks, Cinco de Mayo, Tas Cru 2. Promoted SRP at Fayetteville elementary and secondary schools 3. Concluded a 9 month preschool programming partnership with Trike Theatre 4. Hosted teen Gamer's Club, Teen Anime, Free Flix, Free Comic Book Day and Teen Advisory Board 5. Presented Sit, Stay, Read! t -shirts to participants at Vandergriff, St. Joseph and Root schools 6. Concluded Let's Talk About 1b Making Sense of the American Civil War 7. Launched the Ancient Greeks Modern Lives program series with Dr. Daniel Levine 8. Completed six-week creative writing workshop 9. Offered Nonprofit Resource Center programming and "Get Your Geek On" computer classes 10. Partnered with Fayetteville Earth Day to offer 3 Green Your Life programs on sustainability. 11. Hosted UA's Arkansas Spring Writers Festival featuring Middle Eastern authors. 12. Partnered with the Walton Arts Center on 10x10 Countdown Conversation The Whiffenpoofs of Yale 13. Partnered with TheatreSquared on Arkansas New Play Festival and Artists' Forum 14. Presented authors Dr. Eve Agee, Vivienne Schiffler and Geoff Oelsner 15. Continued 4 monthly library book clubs. 16. Coordinated Artist Adam Campbell art show and artist's reception 17. Met with three artists to discuss their summer art show b. Services: Provided 2 individual research consultations, proctored 7 exams, updated meeting room contract II. Collections: We will build and support collections that inspire the community with the resources they need to explore topics of personal interest and continue to learn throughout their lives. a. Satisfy your curiosity 1. Checked youth collections against ACLS and YALSA notable audios 2. Began offering theme -based book bundles for quick, easy check-out 3. Completed the relabeling of the biographies in the adult collection; teen's and children's to follow 4. Checked adult collection against Edgar Nominees. III. Access: We will build and expand the ease and convenience of the library experience through virtual and physical reach to all in the community, reflecting the FPL welcoming, convening and destination culture. a. Outreach partnerships: Completed Reading Roadshow and Letter of the Week outreach programs. b. Virtual: Enhanced call handler options for patron ease of use IV. People: We create and maintain a culture of excellence by supporting and inspiring our staff, boards, and volunteers. a. Staff 1. Participated in City potluck, Block Street Block Party; working with City on Community Bike Program 2. Completed United Health Care screening and initiated "Healthy Habits" program for FPL staff 3. Conducted quarterly Page meeting; Rachel Pierce is Page of the Quarter 4. Trained Rachel Pierce to operate conveyor; promoted Randy Canales -Ochoa to Page II 5. Promoted H. Robideaux to Assistant Manager, Adult Services; M. Lockaby to Librarian, Adult Services; and C. Walsh to Assistant Manager, Youth Services 6. L. Greenwood moderated Battle of the Books event for Fayetteville 4th and 5th graders. 7. C. Walsh completed Leadership training through the Fayetteville Chamber of Commerce. 8. A. Low judged Poetry Slam for 5th gra5ers and selected by School Library Journal to review article 9. Working with community partners on grant opportunity Smart Investing @ Your Library 10. Working with OLLI Fayetteville Film Festival planned for May 2-5, 2013 11. Hired Stephen Davis as Manager, Accounting and Human Relations and Brandi Holt as Manager, Marketing and Communications 12. Attended monthly AFP meeting; introduced new marketing manager to local contacts b. Boards: Oriented two new FPL Board trustees and added two new Friends Board members and c. Volunteers 1. Completed tours for over 800 FPS kindergarteners 2. Hosted volunteer appreciation brunch, 55 attendees 3. Trained volunteers on oral history project and Letter of the Week V. Facility: Our consumer-friendly, sustainable facility will be safe, accessible, clean and support the requirements for quality programs, services and collections. a. Facilities 1. Added cooling unit to the server room; installed hands-free soap dispensers in bathrooms 2. Held 1u` of four "Green your Life" programs for earth day b. Technology 1. Began pilot deployment of iPad based library catalog search kiosks 2. Implemented new Enterprise accounting software to library finances 3. Began deploying staff iPads to allow staff to help patrons on the floor and off the desk c. Safety/Security: Conducted Code Adam training VI. Communication: We maximize ongoing communication to increase awareness of the library and understanding of its value and impact on the community. a. Coordinated marketing, AFP sponsorship, Wal-Mart Foundation speaker and donated refreshments for Meet the Funders event for June 13 b. Coordinated Annual Report creation efforts c. Created FPL PowerPoint for Downtown Rotary presentation d. Reviewed FPL brand details with DOXA e. Provided FPL booth at NWA regional volunteer fair, Dogwood dog walk, Fayetteville Job Expo, Block Street Block Party, and Senior Health Fair f. Deployed new web site theme with graphics/color scheme developed by Doxa g. Met with Crystal Bridges Library Director Catherine Petersen to discuss ways to partner in the future h. Met with Terri Trotter and Jodi Beznoska from Walton Arts Center to look for ways to cross-promote each other i. Met with Cyd King, NWA City Wire, to discuss future publicity needs j. Attended Social Media webinar VII. Funding: As good stewards of the public trust, we will pursue diverse, sustainable funding. a. Submitted Schmieding Foundation grant for Lending Hands program; received $2,600 toward the program b. Prepared NEH donor request for the final amount to finish goal c. Coordinated NEH gala effort by creating Save the Date cards, requesting sponsorships (Fay. A&P Commission gave $20,000), creating budget/income spreadsheet, meeting with Vista Productions and Eventures to discuss their details and holding meetings with staff and committee chairs to decide event specifics d. Began work with Friends Board to coordinate NEH Gala Silent Auction solicitation and efforts e. Submitted NEH Gala funding proposal to UA Arts and Programs Committee f. Begin work on new Roberta Fulbright Society booklet and newsletter combo g. Took publicity photo and accepted Genealogy book donation from women of DAR h. Attend new Tyson Charitable Giving presentation at their world headquarters i. Coordinated Smart Funding grant marketing plan effort j. Met with Garrison Financial and they agreed to add NEH grant donation 6 0 CD CD 0 W Q 10 o M N '11`1':- ..r O M W V M1 N z x co — 0o. - U O 0 a E ,t 0 a a w a' 005- 5 CO CA0 M m C8o_ 0 r ^ 5 58 a m3, oo 01 I5 ti �o a '2E E a 8 m p ° o a. V A _ Z a E _ ess statistics are not available until after boar 7 $ Over Budget O 0 o CU 'Q 6 N a+ v d 4 'a L a 03 o 5 en CD C cja U. L O L o_ X W v y ° O D O M v 0 0 rn Total 4300.00 • State & Federal Revenues O O co O O D1 O O N M N N , 0 0 0 0 0 F? 0 0 0 O W V O O OJ Os O(13 O a W rn v n o O W m O O N N d 8 a 0 J 0 D w L 0 LL 00 li csi W 0 LL LL 0 0 0 M v 0 0 0 0 T M co co M O C O M . N M 4770.00 • Realized Gain/Loss Investments 4770.01 • Unrealized Gain/Loss On Invest. m m m (V t� N v d CL r La O t CD CD ® o C as W 00 O Total 4770.01 • Unrealized Gain/Loss On Invest. O r t O O O 00 O O 0 0 o N t� V a N Total 4820.00 • Design 4881.00 Gain/Loss on sale of assets 4990.00 • Miscellaneous Income v N• 4998.00 • Credit and Debit Card to alloc oi Total 4000.00 Revenue & Support 9 m 06 m O E O Gross Profit 5100.00 • Personnel Services 5100.01 • Salaries & Wages c M O N v 0 o ro w O O O O O O O 6 (O 6 of ' 6 M W M to O) V l0 of O OD M N N MO)r (0 V co O NI- 0 ' of 6) O r V ai . m.5omo O V N V N Z() 0 0 (00 N 5100.10 • Administration Youth Services O N '1.73 J � 'U U m Post Employment Disburse Vacation Time Used N M d' 0) Or r W O) 2 0 0 0 0 N N N O O m N N n O rn oPI o a m 00_ 1 g m 0 00 N 4�C coo� Fl O m co M V V CO N M M N 0) 0 ttl W 0 O O W o 2 to O n O 45. O N 0,> 171 pN v « m a' y U E m m m (111.11 i- A rp y U U rn o N W o M w o 0 0 0 0 0 � � C N N Tota N Total 5102.00 • Extra Services/ Work Study 5105.00 • Employee Benefit Expenses m 7 N as II!1I 2 d 5105.10 • Health & Dental Insurance r mIN (O m N � O m nO C N R. 8 3 8 C r N- S' O O 00 o M O co R V 8 N o cp 03N C r 10 Total 5100.00 • Personnel Services 0 roi o -or to ori 5203.00 Cleaning & Maintenance Supplies o co Co Z. 0. 0') e•EE.o0 .P5.6 2 \\\\\\\ 9 \\\\\\\ \ : P,., 5201 \ F -C co oi Total 5201.00 • Library Programming Supplies 5202.30 • Processing Supplies 11 \ 0 5220.00 • On-line Databases 5225.00 • Library Materials 5225.01 • Print Books \\ 2|2 Total 5200.00 • Materials & Supp 0, m To Q .>+ N d Q • 15 d m o d t co to 1) 0 co d J C R 4 LL 4- a. O 0N O W O O co D1 N O N 0) • A V °; n O OW M W C 0 0 C O p v u a' cn oo U z tar, . E • a • m 0 N N ; 0 0 0 C N N O O O O W O = d Ui = m O I!! 0 5310.00 Uti Total 5310.00 O a O O O O O ao6 co" O O O Q a m O W O N '235 c0 h c O O O> O O N� W V co" W V 0 0 0 0 00 o c 0 0 0 a, a} M N N N O M N N N V 12 Total 5300.00 - Services & Charges $ Over Budget N MN m c60 o m M 0) a co coO o O V NO O O. Q of r O 5800.00 • Capital & Depreci 5810.00 • Computer & Technological 5870.50 • Furniture & Equipment LJ Total 5800.00 Capital & Depreciation cv Total 5000.00 • Operating Expenses W o ° 0 0 0 W O O O � O d r r d mM O OOLO M V M O80O 0 O O O O 0 M O N O F2 O M N N O O W M LOO O O N U) o LO o r O) m O 13 Transfer from City CIP 6650.01 • Transfer from FPL Fou Total Inter -Agency Transfers Total Other Income Net Other Income 0 m FAYETTEVIJ TY PUBLIC LIBRARY Memo To: Board of Trustees, Fayetteville Public Library Through: David Johnson, Executive Director From: Stephen Davis, Manager—Accounting & HR Date: May 29, 2012 Re: New Accounting Software and Budget Format Changes Background - New Accounting Software Fayetteville Public Library was using two single licenses of QuickBooks Premier software — one for accounting & payroll purposes and one for purchase order preparation. Neither license of QuickBooks communicated with the other database nor does it appear that any financial reporting combined the two databases. Additionally, Library managers did not have ready access to reporting that compared budgeted expenditures to actual expenditures. Finally, FPL's payroll service subscription was set to expire in early August which would have required a software upgrade. Analysis QuickBooks Premier (QB Premier) as an accounting database platform is reliable software but it has structural issues that limit its use to an organization like Fayetteville Public Library. QB Premier has virtually no capability for inquiry only which means that the number of users has to be very tightly controlled because anyone authorized access for inquiry purposes would also be able to make entries that would impact the Library's financials as well as data integrity. Once staff discovered that the payroll subscription would have to be renewed in early August and the underlying financial software would also have to be upgraded, a review of the governmental/non-profit accounting software marketplace was undertaken. Staff performed an internet search and located a firm that serves to match governmental and non-profit agencies with software companies. The firm is compensated by software vendors for this service. Staff provided the basic software requirements along with a not -to -exceed budget and two software vendors responded with offerings that ranged in price from $10,000 to $15,000 plus conversion cost. Staff also asked Intuit, the publisher of QuickBooks, for a software option that would meet the same criteria provided to the software matching service. Intuit quoted QuickBooks Enterprise (QB Enterprise) 10 User package with a new payroll service subscription for $3,752. Each of the software packages has annual maintenance charges that would be required after the initial year; Intuit's annual maintenance cost for this configuration is approximately $1,600. Action Taken Staff has purchased and installed QB Enterprise software with the capability of having 10 discrete users accessing the software simultaneously. Staff expects to rot -out the inquiry capability before the end of June. 14 Background - Budget Format Changes In reviewing previous Board packets, I rioted that each contained two versions of the monthly financial reports — one directly from QuickBooks without budgetary information and the other from an Excel spreadsheet that emulates the financial statement presentation used by the City of Fayetteville for budgetary reporting. Additionally, the chart of accounts needed reorganizing to provide a more readable financial statement. Action Taken A new chart of accounts has been developed and implemented, budgetary data have been added to the appropriate accounts to match the approved budgets and the financial statement format within the accounting software has been reoriented to reflect the format suggested by the Governmental Finance Officers Association. Beginning with this Board packet, both financial reports will be directly from the accounting software (QuickBooks). * Page 2 15 FAYETTEVILLE PUBLIC LIBRARY Memo To: Board of Trustees, Fayetteville Public Library Through: David Johnson, Executive Director From: David Johnson, Executive Director Date: May 30, 2012 Re: Gala Premier Closing Background On the evening of October 19, 2012 the Fayetteville Public Library wit be hosting a gala premier presentation of Emmy Award winning director Larry Foley's documentary film "Up Among the Hills". This historical presentation of the history of Fayetteville was made possible by FPL's National Endowment of the Arts Challenge Grant. This formal gala event will include dinner for over 350 people, silent and live auctions, musical guests and a viewing of the documentary. With a budget of over $75K, this event will require transforming the Media/Magazine area of the library into a dinning and viewing space. Vista Productions has been hired to handle all of the sound and video production, and Eventures has been hired to handle the food and dining operations. One full day of preparation and set up are required for transforming this space for the premier. Recommendation It is a staff recommendation that FPL Board of Trustees officially approve closing the library during normal operating hours on October 19' 2012 in order for there to be minimal interruptions and delays in preparing for the gala event. 16 FAYETTEVILLE PUBLIC LIBRARY Memo To: Board of Trustees, Fayetteville Public Library Through: David Johnson, Executive Director From: Stephen Davis, Manager — Accounting & HR Date: May 29, 2012 Re: Approval of $334,980 transfer from city into FPL budget Background - Budget There are two related items that converge in this agenda item: 1) The first item is the Fayetteville Public Library Board of Trustees policy regarding approval of the annual budget for the library and budget amendments above a specified threshold; and, 2) The second item is that the City of Fayetteville transfers funds to Fayetteville Public Library for FPL's collection. FPL's policy states that budget amendments in excess of $10,000 have to be approved by the Board of Trustees. I reviewed FPL Board minutes beginning with the June 2011 meeting and could not find where the Board of Trustees added the City of Fayetteville CIP Books to the approved budget for 2012. Analysis The approval of this request will not add any "new" funding to the 2012 Library budget but will provide an audit trail that money was added to the Library budget in compliance with Library policies. Recommendation It is staff recommendation that FPL Board of Trustees officially approve inclusion of the CIP Books to the Library Budget as both a revenue line item and an expenditure line item. The CIP Books transfer is $334,980. 17 Fayetteville Public Library 2012 Budget 1 Annual 1Budget ! Revised 1 Budget Per I QB Account # 1 !__ _ _ Budget 1_ Amendments., Budget_1_Board Packet'', Difference 2012 1I CY 2012 1 2012 1 2012 ' Personnel Services 1 ...__4 _ Salaries and Wages 1 782,000 91,468 1,873,468 [ 1,873 468 0 -_.,- 10,000 10,000 0 Work/Study 10,0001 0 [Salary g 10,0001 1 0 10,000 10,0001 0 Social SecurityTaxes ' __- ___-- 138,000 Insurance - Life/AD&D 6,000, 0 136,000 0 138,000 Ol 6,000l 6,0001 Insurance -Health 148,0001 0, 148,000 148,0001 Insurance - LTD 4,0001 0. 4,0001 4000! 0 Retirement Savings Plan; 180,000' 01 180,000 180,000 0 Unemployment Insurance 1 13,0001 01 13,0001 13,000i 0 1 W ro kro kers Comp 1 7,000 01 7,000[7 000: 0 I Contract Cleaning Services 1 3,000 01 3,0001 3,000; Total Personnel Services 2501,000 91,468 2592,468 2,392,468 1 Materials and Supples _... 1 (Office and Program Supplies ':Processing Supplies Advancement Supplies 5114 [ Software 51141 Software Maintenance 5115[Computer/Tech. Equipment I 51421 Cleaning Supplies 1 56101Drop box pickup I Supplies to be Reimbursed I Total Materials and Supplies 1 Services and Charges 5700! Public Notif. and Relations [Marketing - Development -Vol. City Transfer for Books 7130 :Online Databases Library Materials 56001Travel and Training 52001Postage _ - _ ,Audit Expense 6000, Utilities 6101 Telephone 6250 Insurance - Liability 5800 Other Professional Services _ Programming Legal Services 1 Total Services and Charges 487,030 379,655 866,685 866,685 Maintenance 8100' Building Maintenance 171 500 0 171,500 171,500' 850010ffice Machine Maintenance 25,000 0 25,000 25,000, 81251 Landscape Maintenance' 20,000 0 20,000. 20,000,. 47000 --- --. 0 .�---47,0001 47000. 28,000 28,000 28,0001 7,0001 01 7,000 7,00011 67 000' 0.. 67,000 _----67 0001 136,0001 20,000'': 156,0001 156 0001 18,0001 0 18,0001 18,0001 8,5001 -_, 0 8,500 8,500; - I 01 0, 0 337,500 20,000 357,500 357,500 7,000: 0 7,000 7,000 15,000;.[,,,,,,-0 15,0001 15,000 0 4,980 334,98 0 50,000 0 -- 50;000 0 69530 24,675 94,205 479,185 25,000, 0 25,000 25,0001 20,0001 0 20,000 20,0001 185001 0 18,500 18 500 0 144,0001 0 144,000 144500[, 39,000'. 0 39,000 39,000,_ 7,000! 0 7500 ..±9°Q.. 35,000 18,000 53500 53,000 55,000 2,000 57,000 57,000 2,000 0 2,0001 2,0001 Total Maintenance Capital and Depreciation 0 216,500 0 216,500 216,500 0 18 5/4/2012 Fayetteville Public Library 2012 Budget QB Account# , Annual j Budget I Revised 1 Budget Per 1 Budget j Amendments 1 Budget I Board Packet 2012 1 CY 2012 1 2012 I 2012 Difference Canna] (Fixed Assets)11 ..__ __._120Projects.- -- _ .__ !project listing 2012 Budget (need project listing) Furniture & Equipment] ,, Total Capital Transfers Transfers Out IT Technology Designated Fund Total Transfers Total 20,0001 I 01 20,0001 20,000 34,0051 34,0051 34,0051 20,000 34,005 54,005 54,005 36,9331 36,9331 36,933 0 36,933 36,933 0 36,933 3,362,030 562,061 3,887,158 3,887,158 36,933 19 5/4/2012 FAYETTEVILLE PUBLIC LIBRARY Memo To: Board of Trustees, Fayetteville Public Library Through: David Johnson, Executive Director From: David Johnson, Executive Director Date: May 30, 2012 Re: Benefits Brokerage Change Background Effective May 16, 2012, the City of Fayetteville moved its benefits brokerage account from Stephens, Inc. to Gallagher Benefits Services. Historically, the Fayetteville Public Library has been allowed to "piggyback" onto the City of Fayetteville's account. This has benefited both the library and the city in that the larger demographic pool provides more benefits negotiating leverage. The agreement to allow FPL "piggyback" was never under any contract. As such, the Library was presented with an opportunity to review its benefits brokerage account. Analysis Three options were reviewed: 1. Stay with Stephens, Inc. under a new benefits brokerage contract. 2. Submit a RFP to "shop" for a new benefits brokerage. 3. Continue to "piggyback" onto the City of Fayetteville for demographic pool procurement purposes, but under a formal contract between the Library and Gallagher Benefits Services. Recommendation It is a staff recommendation that FPL Board of Trustees officially approve continuing to "piggyback" onto the City of Fayetteville for demographic pool procurement purposes, but under a formal contract between the Library and Gallagher Benefits Services. 20 FAYETTEVILLE PUBLIC LIBRARY Memo To: Board of Trustees, Fayetteville Public Library Through: David Johnson, Executive Director From: David Johnson, Executive Director Date: May 30, 2012 Re: Updating Records with Financial Institutions Background Staff changes in the administrative team and a reconstituted board of trustees have necessitated the need to update the library's accounts with various financial institutions. Those institutions are Garrison Asset Management, is Security Bank, Arvest Bank and the Bank of Fayetteville. They have requested minutes reflecting those board members authorized to sign checks. In addition, with Stephen Davis now on staff as the Manager of Accounting and Human Resources, we are requesting that his new position be formalized in the minutes. Recommendation It is staff recommendation that the FPL Board of Trustees move to authorize Suzanne Clark, Dan Ferritor, Elizabeth Jordan and Maylon Rice to sign library issued checks and, further, to recognize Stephen Davis as the Manager of Accounting and Human Resources for the Fayetteville Public Library. 21 FAYETTEVILLE PUBLIC LIBRARY Memo To: Board of Trustees, Fayetteville Public Library Through: David Johnson, Executive Director From: David Johnson, Executive Director Date: May 29, 2012 Re: Retirement Plan Changes Background During the 2012 annual review of the Library's Retirement Plan with the Bank of Oklahoma, a couple of retirement plan service enhancements were discussed: • Online Enrollment • Online Contribution Rate Changes • Automatic Rebalancing • Auto Enrollment Online Enrollment and Online Contribution Rate Changes are administrative "paperless" services that help eliminate paper waste and increase efficiency. Automatic Rebalancing is a feature that wit automatically rebalance the participant's account on a quarterly, semi-annual or annual basis back to the original investment election percentages on file. Over time the original election percentages may subtly change as some investments outperform others, and as a result, the original asset allocation may stray from the original targets. Plan participants simply have to select a check -box and select a rebalance cycle for this service to be turned on. Online Enrollment, Online Contribution Rate Changes and Automatic Rebalancing can be implemented without a change to our plan document. Auto Enrollment is a change in plan design. Currently, when a new employee is hired he/she makes the decision to opt "in" to participation in the retirement plan. Conversely, under "Auto Enrollment", all new employees are signed up to participate at date of hire with a 3% contribution and have the choice to opt "out" of the plan. The employee contribution would be invested using one of the Managed Allocation Portfolio (MAP) options based on the employee's age. Of course, the employee would be able to change the investment option at any time. If this option is implemented it will require the services of legal counsel Craig Westbrook with Overbey, Strigel, Boyd & Westbrook, PLC to change the Librarys plan document 22 Analysis Online Enrollment, Online Contribution Rate Changes and Automatic Rebalancing are voluntary services provided to participants that do not have to be used if the participant chooses not to. The Automatic Enrollment is a shift in philosophy designed to increase participation and retirement savings, and providing better benefits has proven to improve employee morale, retain talent and improve recruitment. Recommendation It is the staff recommendation that FPL Board of Trustees officially approve the implementation of all four of the retirement plan service enhancements: • Online Enrollment • Online Contribution Rate Changes • Automatic Rebalancing ▪ Auto Enrollment Page 2 23 FAYETTEVILLE PUBLIC LIBRARY Memo To: Board of Trustees, Fayetteville Public Library Through: David Johnson, Executive Director From: Stephen Davis, Manager—Accounting & HR Date: May 31, 2012 Re: Bank of Fayetteville Certificate of Deposit Background FPL received a notice from Bank of Fayetteville concerning maturity of a certificate of deposit (CD) held by BOF. In reviewing our files, the initial CD appears to have originated in 1997 and has been kept in 6 month CD's since the initial deposit. Analysis The current balance is $102,340.59 and has been reinvested in a new 6 month CD (May 24 to November 22) with a rate offering of 0.25%. The Library has 10 business days to make changes to this CD without incurring a penalty. The 10 days expire on June 8. Recommendation Staff recommends that this CD be cancelled and added to the undesignated Reserves managed by Garrison/Schwab on the next renewal date (November 22, 2012). 24 SIDNEY P. DAVIS,111 CONSTANCE 0, CLARK WM. JACKSON BUTT it KELLY CARITHERS DON A. TAYLOR CASEY D. LAWSON JOSHUA D. McFADOEN COLIN M. JOHNSON DAVIS, CLARK, BUTT, CARITHERS & TAYLOR, PLC ATTORNEYS AT LAW 19 EAST MOUNTAIN ST. P. 0. BOX 1688 FAYIOITEVILLE, ARKANSAS 72702-1688 PHONE (479)521-7600 FAX (479)521-7661 11015://www.davis-firm.com Rev. Lowell Grisham St. Paul's Episcopal Church 224 N. East Avenue Fayetteville, AR 72701 Mr. Tony Uth, CPA, Chair c/o Hogan Taylor, LLP 688 E. Millsap, Ste #203 Fayetteville, AR 72703 Dear Clients: May 21, 2012 J. DAVID DIXON WILLIAM 0 CLARK WRITER'S DIRECT E-MAIL wclari<Q,aavis-0 rm.con, RE: Estate of Bernice Helen Dunaway; Washington County Circuit Court No. I'R.-2009-393-5 Mr. David Johnson, Executive Director Fayetteville Public Library 401 W. Mountain Street Fayetteville, AR 72701 As detailed in Mr. Butt's earlier e-mail to you, on May 7, 2012, Mr. Butt and I attended a hearing in Judge Beth Storey Bryan's court on the separate defendants, Tracy and Rebecca I-Iutchens', Motion to Dismiss. Mr. Bobby Odom, the Hutchens' attorney, argued that the buyers of the Estate property should have been dismissed from the action for failure of the Library and Church to state a claim in their Complaint. With Mr. Butt's assistance, I argued on behalf of the Library and Church that the Complaint sufficiently stated a legal cause of action and therefore the Court should deny the defendants' Motion to Dismiss. After hearing arguments of counsel, the Judge ruled against the I-Iutchens and in favor of St. Paul's and the Fayetteville Public Library Foundation. Specifically, the Court found that the Complaint set forth a valid and legal cause of action against the defendants and, therefore, the Motion to Dismiss must be denied. Although this is a very important ruling and keeps the purchasers of the property in the case, it by no means addressed the merits of our position or the underlying facts in the case. Those matters have been set to be heard in a two-day bench trial beginning on August 29, 2012 and concluding on August 30, 2012. In light of this scheduled trial date, I would ask that each of you please mark your calendars and plan on attending and/or participating in the trial of this cause. 25 Clients May 21, 2012 Page 2 Because their Motion to Dismss was denied, the Hutchens have now filed their Answer to the complaint, combined with a Counterclaim against both the Church, the Library and the Executor of the Estate. In their Counterclaim, the Hutchens' allege that, in addition to paying $35,000.00 for the property, they have spent more than $70,000.00 on the property and they ask for reimbursement of those sums in the event their purchase of the property is set aside. We have replied to the Counterclaim, denying that the Hutchens are entitled to any of the relief sought in their pleading. The Executor has also filed his own similar response. Our next step is to send a set of written discovery to each of the defendants in this matter requesting various information and documentation. Once written discovery has been completed, we will likely schedule a few brief depositions to obtain testimony under oath from the defendants and whomever they intend to call at trial. I enclose with this letter copies of the Order denying the Motion to Dismiss that was filed in the probate matter on May 7, 2012, as well as the Hutchens' Answer and Counterclaim filed on May 16, 2012, the response to the Counterclaim filed by the Executor on May 17, 2012 and our Reply to Counterclaim filed today. If you have any questions or concerns, please do not hesitate to call me and, again, I ask that you please mark your calendars for the above -noted trial date. WFC/1k Enclosure Sincerely, DAVIS, CLARK, BUTT, CARITHERS & TAYLOR, PLC UV% / illiam F. Clark 26 IN THE CIRCUIT COURT OF WASHINGTON COUNTY, ARKANSAS PROBATE DIVISION IN THE MATTER OF THE ESTATE OF BERNICE HELEN DUNAWAY, DECEASED FAYETTEVILLE PUBLIC LIBRARY FOUNDATION AND ST. PAUL'S EPISCOPAL CHURCH v. JULIUS D. GAUDET, JR., PERSONAL REPRESENTATIVE OF THE ESTATE OF BERNICE HELEN DUNAWAY, DECEASED AND TRACY IIUTCHENS AND REBECCA HUTCHENS, HUSBAND AND WIFE NO. PR 2009-393-5 PLAINTIFFS DEFENDANTS TRACY HUTCHENS AND REBECCA HUTCHENS, HUSBAND AND WIFE COUNTER -PLAINTIFFS v. FAYETTEVILLE PUBLIC LIBRARY FOUNDATION; ST. PAUL'S EPISCOPAL CHURCH; AND JULIUS D. GAUDET, JR., PERSONAL REPRESENTATIVE OF TIIE ESTATE OF BERNICE HELEN DUNAWAY, DECEASED REPLY TO COUNTERCLAIM COUNTER -DEFENDANTS Come now the Plaintiffs and Counter -Defendants, the Fayetteville Public Library Foundation ("FPLF") and St. Paul's Episcopal Church of Fayetteville, Arkansas ("St. Paul's"), and for their 27 Reply to the Counterclaim filed against them herein by the separate Defendants and Counter - Plaintiffs, Tracy Hutchens and Rebecca Hutchens ("the Hutchens"), state as follows: (1) With the exception of those allegations admitted herein, FPLF and St. Paul's deny, both generally and specifically, each and every allegation contained and set forth in the Hutchens' Counterclaim filed against them herein. (2) FPLF and St. Paul's admit that the Hutchens paid $35,000.00 to the Estate ofBemice Helen Dunaway for the property which is the subject of this action. The remainder of the allegations of paragraph 1 of the Hutchens' Counterclaim against the plaintiffs are denied. (3) The allegations of paragraph 2 of the Hutchens' Counterclaim against FPLF and St. Paul's are denied. (4) FPLF and St. Paul's deny that the Hutchens are entitled to any relief as prayed for in their Counterclaims filed herein. WHEREFORE, PREMISES CONSIDERED, the plaintiffs and counter -defendants, the Fayetteville Public Library Foundation and St. Paul's Episcopal Church of Fayetteville, Arkansas, pray that the Counterclaim filed against them herein by the defendants and counter -plaintiffs, Tracy Hutchens and Rebecca Hutchens, be dismissed and for any and all other relief to which they may be entitled. 2 28 By: FAYETTEVILLE PUBLIC LIBRARY FOUNDATION and ST. PAUL'S EPISCOPAL CHURCH Wm. ackson Butt, II 4810 Constance G. Clark 479033 William F. Clark 42010142 DAVIS, CLARK, BUTT, CARITHERS & TAYLOR, PLC P.O. Box 1688 Fayetteville, AR 72702-1688 (479) 521-7600 CERTIFICATE OF SERVICE I, Constance G. Clark, hereby certify that I have on this y of May, 2012, served a copy of the within pleading on all counsel of record in the foregoing proceeding by depositing a copy of same in the United States Mail, postage prepaid. Mr. Bobby Lee Odom ODOM LAW FIRM P.O. Box 1868 Fayetteville, AR 72702-1868 Mr. Ronald G. Woodruff WOODRUFF LAW FIRM Post Office Drawer 1866 Fayetteville, AR 72702-1866 3 29 N THE CIRCUIT COURT OF WASHINGTON COUNTY, ARICANSAS PROBATE DIVISION IN THE MATTER OF THE ESTATE OF BERNICE HELEN DUNAWAY, DECEASED 11I 2009- f93-5 c FAYETTEVILLE PUBLIC LIBRARY FOUNDATION AND ST. PAUL'S EPISCOPAL CHURCI-I, V. JULIUS D. GAUDETT, JR., PERSONAL REPRESENTATIVE OF THE ESTATE OF BERNICE HELEN DUNAWAY, DECEASED AND TRACY HUTCHENS AND REBECCA HUTCHENS, HUSBAND AND WIFE TRACY HUTCHENS AND REBECCA HUTCHENS, HUSBAND AND WIFE V. FAYETTEVILLE PUBLIC LIBRARY FOUNDATION AND ST. PAUL'S EPISCOPAL CHURCH AND JULIUS D. GAUDETT, JR., PERSONAL REPRESENTATIVE OF THE ESTATE OF BERNICE [-IELEN DUNAWAY, DECEASED PLAINTIFFS DEFENDANTS COUNTER -PLAINTIFFS COUNTER -DEFENDANTS ANSWER TO CROSSCLAIM OF SEPARATE DEFENDANTS TRACY HUTCHENS AND REBECCA HUTCHENS Comes now Julius D. Gaudett, Jr. and for his Answer to Crossclaim of Separate Defendants Tracy Hutchens and Rebecca Hutchens states: I. That Julius D. Gaudett, Jr. admits the allegations contained in paragraph I of the Crossclaim. 30