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November 17, 2017 Minutes of the Regular Meeting

ANN ARBOR DISTRICT LIBRARY BOARD
343 S. FIFTH AVENUE, ANN ARBOR, MI
MINUTES OF THE REGULAR MEETING
MONDAY, NOVEMBER 13, 2017

17-171 I. CALL TO ORDER

President Vander Broek called the meeting to order at 7:04 p.m.

17-172 II. ATTENDANCE

Board Present:  Victoria Green, Jim Leija, Jan Barney Newman, Colleen Sherman, Linh Song, Ed Surovell, Jamie Vander Broek
Board Absent:   None
Staff:  Josie Parker, Eli Neiburger, Karen Wilson (recorder)                 

17-173 III. APPROVAL OF AGENDA
(Item of action)

Trustee Barney Newman, supported by Trustee Sherman, moved to approve the agenda.

AYES:    Green, Leija, Barney Newman, Sherman, Song, Surovell, Vander Broek
NAYS:    None

Motion passed 7-0.

17-174 IV. CONSENT AGENDA
(Item of action)

CA-1 Approval of Minutes of October 16, 2017
CA-2 Approval of October 2017 Disbursements 

Trustee Barney Newman, supported by Treasurer Leija, moved to approve the consent agenda.

AYES:    Green, Leija, Barney Newman, Sherman, Song, Surovell, Vander Broek
NAYS:    None

Motion passed 7-0.

17-175 V. CITIZENS’ COMMENTS

There were no citizens’ comments. 

17-176 VI. FINANCIAL REPORTS
Bill Cooper, Finance Manager

Finance Manager Cooper presented the October 2017 financials in the Board Packet. He noted that $14,882,712 million in property taxes, 95% of the budgeted amount, have been received year to date. Currently year to date expenditures are under budget by $769,417.

17-177 VII. COMMITTEE REPORTS

17-178 A. BUDGET & FINANCE COMMITTEE

Treasurer Leija reported the Budget and Finance Committee met with Old National Bank and reviewed AADL investments with that institution. The committee also reviewed changes to the financial policies being proposed later on in the agenda. Director Parker and Trustee Sherman met with Neel Hajra at the Ann Arbor Area Community Foundation to discuss services they provide. AADL is unusual in that it is a governmental entity and has 501(c)3 status. The committee has discussed endowments and foundations but has no recommendations at this time. Director Parker noted that current endowment/restricted funds include Holtrey, Westerman, Keniston, Schafer, Price and the Ladies Library Association. The committee is reviewing AADL’s endowments and will also be reviewing the financial model for 5th Avenue Press. 

17-179 B. EXECUTIVE COMMITTEE

President Vander Broek reported the Executive Committee will be meeting with John Cavanagh from EPIC-MRA to work on questions for the upcoming 2018 survey. The committee will bring draft questions to the full Board at the December Board meeting. Treasurer Leija noted that the focus of the questions will be on the functions and purpose of the Downtown Library. 

President Vander Broek reported the director’s evaluation process is proceeding and a final report should be ready by the December Board meeting. 

17-180 VIII. DIRECTOR’S REPORT
Josie B. Parker, Director

Director Parker submitted her written report at the meeting and highlighted the following: 

On November 27th AADL will participate in a live-stream from Hill Auditorium of the Congressman John Lewis event in the evening. Also on the 27th author Nate Powell will present at AADL in the afternoon prior to the evening event.  

The 5th Avenue Press launch on November 5th was a great success.

With suspension of MeLCat, traditional interlibrary loan requests have jumped from 20 per week to 150 per week. 

Will Gordon from O’Neal Construction will be presenting later on in the agenda on the Downtown Library.

AADL will be working with John Cavanagh from EPIC-MRA on the upcoming 2018 survey. 

A summary of public comments and library programs were viewed.

17-181 IX. OLD BUSINESS

17-166 A. AADL STRATEGIC PLAN GOAL 3.3: DOWNTOWN LIBRARY BUILDING PRESENTATION
Will Gordon, O’Neal Construction, Inc.

Mr. Gordon presented four scenarios for the disposition of Downtown Library building. 

Scenario number one by Reserve Advisors provided an in-depth analysis of maintaining the current building with basic maintenance over the next thirty years at an anticipated cost of $10.4 million in capital expenses.  This does not account for any improvements or upgrades to the building. Mr. Gordon noted that he has a meeting scheduled with Reserve Advisors as he has concerns that some of the numbers they presented are too low. 

Scenario number two would provide for interior demo and renovations. This would address only cosmetic changes to the building. The core and shell of the building would remain untouched. Anticipated cost for this would be between $17.9 million to $22.4 million. Upgrading this scenario to include some mechanical, electrical and plumbing work would cost between $19.5 million and $25.1 million.

Scenario number three would demolish the current building and build a new 120,000 square foot building on the site at an estimated cost of $42.2 million up to $62.5 million. The current library building is 111,000 square feet. 

Scenario number four would demolish the 1958 portion of the library building, provide for interior demo/renovation of the 1975 and 1991 portions. A new addition would be built in place of the 1958 area of the building creating a complete building of 120,000 square feet. Anticipated cost would be $28.7 million up to $39.4 million. 

Board members expressed their concerns in addressing the sewage issue of the building. 

The Board discussed the various options presented and expressed the need to proceed slowly with more research needed. Trustee Surovell recommend that consideration be given to moving the Library off the current location and that this option also be researched. 

Director Parker stated that a building program is needed to address what you would want to provide in the building. A schematic design would follow that process. Trustee Sherman noted that the EPIC-MRA survey would be the next logical step to help determine what is needed. 

17-163 B. RESOLUTION ADOPTING REVISIONS TO BUSINESS AND FINANCE POLICIES
(Item of action)

Treasurer Leija, supported by Trustee Sherman, moved the Board resolves that the following Library Policies are revised as proposed: 7.4 Investment Policy –General Operating Fund; 7.5 Investment Policy – Strategic Fund Equity; 7.6 Gifts and Bequests Policy; 7.9 Purchasing Policy; 7.11 Identification and Disposition of Obsolete, Surplus, or Salvage Property; 7.16 Library Credit Card Policy; 7.17 Library Policy for Acceptance to Payments Via Financial Transaction Devices; 7.18 Library Policy for Payment of Library Funds Via Electronic Transactions; that all resolutions and parts of resolutions that conflict with the provisions of this resolution are rescinded.

Director Parker noted that updates were necessary to the investment policies after discussion with our financial institutions and law firm. A revised copy of policy 7.5 was distributed to Board members. AADL is acting within the law, but the policies needed to reflect current practice. The remaining financial policies were updated to reflect current staffing titles. The purchasing policy update also reflects 2017 CPI numbers up from 2006. 

AYES:    Green, Leija, Barney Newman, Sherman, Song, Surovell, Vander Broek
NAYS:    None

Motion passed 7-0.

17-164 C. RESOLUTION ADOPTING REVISIONS TO CIRCULATION POLICY 3.1
(Item of action)

Treasurer Leija, supported by Trustee Sherman, moved the Board resolves That Circulation Policy 3.1 is revised as proposed; that all resolutions and parts of resolutions that conflict with the provisions of this resolution are rescinded.

Deputy Director Neiburger reviewed the policy changes with the Board. He noted several changes were made to bring the policy in line with practice and procedure was removed. He reviewed a breakdown of fees and fines. He noted when audio-visual fines are dropped from $1.00 per day to .25 cents per day a 33% decrease in fine revenue is anticipated.  He clarified that the $50 per day fine for tools apply only to those tools which will be bookable for a specific time frame and a form acknowledging this will be required to be signed by the patron. 

Several Board members expressed concerns regarding changes to 3.1O-Payment Policy and 3.lP-Fines. 

Treasurer Leija, supported by Trustee Barney Newman, moved to table the resolution and revisit it in December. 

AYES:    Green, Leija
NAYS:    Barney Newman, Sherman, Song, Surovell, Vander Broek

Motion failed 2-5.

Trustee Sherman moved to accept changes to 3.1 except 3.1P.

Motion failed due to lack of support.

The original motion was voted on and was as follows:

AYES:    Leija, Barney Newman, Sherman, Song, Surovell, Vander Broek
NAYS:    Green

Motion passed 6-1.

17-182 X. CITIZENS’ COMMENTS

There were no additional citizens’ comments. 

17-183 XI. ADJOURNMENT

President Vander Broek adjourned the meeting at 9:13 p.m.