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October 16, 2006 Minutes of the Regular Meeting

ANN ARBOR DISTRICT LIBRARY BOARD
MINUTES OF THE REGULAR MEETING
MONDAY, OCTOBER 16, 2006

07-058 I. CALL TO ORDER

President Leary called the meeting to order at 6:39 p.m.

07-059 II. ATTENDANCE

Present: Cahill, Greene, Head, Leary, Murphy, Barney Newman, Surovell
Staff: Nieman, Parker, Pollock (Recorder)
Other: Dave Fisher, Rehman Robson

07-060 III. APPROVAL OF AGENDA

President Leary, supported by Trustee Murphy, moved to approve the Agenda.

Trustee Cahill, supported by Secretary Greene, moved to amend the Agenda to add the item of a Vote to Send Letter of Intent to the Friends of the Ann Arbor District Library under New Business.

A vote was taken to approve the Agenda as amended.

AYES: Cahill, Greene, Head, Leary, Murphy, Barney Newman, Surovell
NAYS: None

Motion passed 7-0.

The original motion was brought to a vote,

AYES: Cahill, Greene, Head, Leary, Murphy, Barney Newman, Surovell
NAYS: None

Motion passed 7-0.

07-061 IV. APPROVAL OF MINUTES OF SEPTEMBER 18, 2006

President Leary, supported by Trustee Cahill, moved to approve the minutes for September 18, 2006.

AYES: Cahill, Greene, Head, Leary, Murphy, Barney Newman, Surovell
NAYS: None

Motion passed 7-0.

07-062 V. CITIZENS’ COMMENTS

There were no citizen comments.

07-063 VI. FINANCIAL REPORT

Associate Director Ken Nieman reported the following:

He reviewed the financials for July, August and September 2006.

We received 9% of our budgeted tax revenue through July 31st. Six items are over budget, and are expected to come back in line throughout the year.

$130,000 expended on the Northeast project during the month of July.

We received 48% of budgeted tax receipts were received for the month of August. We received 81% of budgeted tax receipts through September.

Otherwise, it has been business as usual for the past three months.

07-064 VII. DIRECTOR’S REPORT

In addition to the written report, Director Parker reported the following:

Director Parker shared with the Board the program booklet produced for the Royal Shakespeare Company and made a special commendation to Tim Grimes for his programming and partnership efforts with the University Musical Society.

Director Parker invited the Board to participate in the AADL Annual staff day on Friday, November 10th. The day will close at 3:30 with a musical performance by Common Chords.

07-065 VIII. BUDGET AND FINANCE COMMITTEE REPORT

Treasurer Barney Newman reported the committee met on Wednesday, October 11, 2006.

Dave Fisher of the firm Rehman Robson reviewed the annual audit report with the Committee, commenting favorably on the financial management of the Library.

The Committee recommended the Board comply with the Michigan Department of Treasury regulations governing Board approval of expenditures, in the manner that will be presented to the Board by Administration.

The Committee also discussed the management of donations to the Library held in funds that are treated like endowments. The Committee recommended the approval of the Westerman Fund Resolution as appears under New Business on the Agenda.

07-066 IX. OLD BUSINESS

04-207 A. UPDATE ON PITTSFIELD BRANCH

Associate Director Nieman reported the exterior signage has been installed and is fully functioning.

06-125 B. UPDATE ON NORTHEAST BRANCH

Director Parker reported they received the best bid coverage ever for a library branch project, with 160 total bids were received for all categories. Total original projected cost came in $600,000 over budget. The last three weeks have been spent doing some value engineering. O’Neal Construction was able to work with the contractors on alternates. We are now $200,000 over budget. The cost of concrete was a huge miss in estimations and the cost to retain water is excessive. The green roof and the exterior copper cladding have been eliminated. We are working on negotiating bids down to what the budget allows. It will be another 2-3 weeks before bids will be available for approval. Approval of bids will take place during a special meeting.

Ground breaking will not be ceremonial and will be scheduled after bids are awarded.

Associate Director Nieman clarified the $600,000 over budget did not include the cost for a vegetative roof, and $100,000 of this amount is the design contingency.

Director Parker’s recommendation was to forego the vegetative roof as well as copper cladding to enable us to remain closer to the original budget.

07-024 C. UPDATE ON STATUS OF FRIENDS OF THE ANN ARBOR DISTRICT LIBRARY

Director Parker reported that she along with President Leary, Vice President Head and Phyllis Adams of Dykema met with FAADL Board and their attorney. It was a positive meeting. The Friends have regained their nonprofit status with the State of Michigan. They are committed to having audits performed back to 2000.

While books are continuing to be accepted at the AADL, bookshop sales have not yet resumed.

Director Parker requested the Board authorize her to sign an interim letter of intent to the FAADL to establish a use agreement, which would allow the bookshop to re-open.

07-067 X. NEW BUSINESS

07-068 A. AUDITORS REPORT

Dave Fisher, Rehman Robson

This was discussed in depth during Wednesday’s finance committee meeting.

General fund is the largest operating fund.

Capital outlay was a high expense, which mainly included the Pittsfield Branch. 1/3 of this cost is for the future (new buildings, etc.). This is being done without borrowing money.

Property tax is 92% of revenue. Taxes in Washtenaw County have increased.

There is $4,000,402 left in fund balance at the end of the year. Unreserved balance is $4,000,188. Divide this number by total expenses equals 29% remaining in fund balance.

First part of auditor’s letter explains the purpose of the audit. There were no problems or difficulties in performing the audit.

The auditor would like to see a form developed to tabulate revenue from copier and change machines.

Trustee Cahill discussed a concern about the monitoring resolution. Mr. Fisher explained that regulations have been in place for several years, but now, they are being enforced.

Trustee Murphy thanked Dave Fisher on behalf of the Budget and Finance Committee for being so helpful and accommodating in addressing all of their questions and concerns.

07-069 B. RESOLUTION TO ACCEPT THE AUDITORS REPORT

Treasurer Barney Newman, supported by Trustee Cahill, moved to accept the auditors report.

AYES: Barney Newman, Cahill, Greene, Head, Leary, Murphy,Surovell
NAYS: None

Motion passed 7-0.

07-070 D. RESOLUTION TO ESTABLISH BOARD MONITORING COMPLIANCE OF DISBURSEMENTS

Vice President Head, supported by Treasurer Barney Newman, moved to approve the resolution to establish board monitoring compliance of disbursements.

AYES: Barney Newman, Cahill, Greene, Head, Leary, Murphy, Surovell
NAYS: None

Motion passed 7-0.

07-071 E. DISCUSSION OF WESTERMAN FUND

Director Parker reported the Westerman Fund has grown to over $30,000 from the original gift of $15,000. These monies are designated to children’s programming.

Since Mrs. Westerman’s death, funds have been added from donations. Director Parker recommended the Budget and Finance Committee along with the Development Committee work to establish policies to govern this and other designated funds as funds acting as endowments. This resolution will give Scott Westerman some assurance that his wife’s intentions will be honored.

07-072 F. RESOLUTION TO ESTABLISH WESTERMAN FUND AS FUND ACTING AS AN ENDOWMENT

Trustee Murphy, supported by Secretary Greene, moved to approve the vote to establish the Westerman Fund as Fund Acting as an endowment.

The Board discussed the difference between an “endowment fund” and a “fund acting as an endowment.” The difference being, in an emergency, the Board can choose to make these funds not a fund acting as an endowment, and with a real endowment, we would need permission to use the funds as otherwise designated.

AYES: Barney Newman, Cahill, Greene, Head, Leary, Murphy, Surovell
NAYS: None

Motion passed 7-0.

07-073 G. RESOLUTION TO AWARD CARPETING CONTRACT FOR DOWNTOWN AREAS AND WEST BRANCH

Vice President Head, supported by Trustee Murphy, moved to approve the vote to award the carpeting contract to Decorative Flooring for the downtown areas and West Branch.

AYES: Barney Newman, Cahill, Greene, Head, Leary, Murphy, Surovell
NAYS: None

Motion passed 7-0.

07-074 H. RESOLUTION TO ENTER INTO AN INTERIM LETTER OF INTENT WITH THE FRIENDS OF THE ANN ARBOR DISTRICT LIBRARY

Trustee Cahill, supported by Vice President Head, moved the following:

The board authorizes the Director to enter into an interim letter of intent with the FAADL, which will allow the Friends’ bookshop to open upon the terms and conditions of the letter of intent.

AYES: Barney Newman, Cahill, Greene, Head, Leary, Murphy, Surovell
NAYS: None

Motion passed 7-0.

07-075 I. VOTE FOR EXECUTIVE SESSION AT THE NEXT REGULAR SCHEDULED BOARD MEETING FOR OPINION OF COUNSEL

Trustee Cahill, supported by Trustee Murphy, moved to vote for executive session at the next regularly scheduled Board meeting for opinion of counsel.

A roll call vote was taken:

AYES: Barney Newman Cahill, Greene, Head, Leary, Murphy, Surovell
NAYS: None

Motion passed 7-0.

07-076 XI. ADJOURNMENT

Meeting adjourned at 7:41 p.m.