SHAKER HEIGHTS PUBLIC LIBRARY

Board of Trustees

Regular Meeting

Tuesday, March 10, 2009

Attendance

Members Present: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten,

Dr. Whyte

Members Absent: Dr. Hutt

Staff Present: Mr. Dickinson, Ms. Miller, Mr. Piskac, Ms. Switzer

Others: Evelyn Krent, League of Women Voters Representative

Dr. Whyte called the regular meeting of the Shaker Heights Public Library Board of Trustees to order at 6:34 p.m. in the Bertram Woods Community Room.

Approval of Minutes

Dr. Whyte requested a motion to approve the February 10, 2009 regular Board meeting minutes.

2009-24 Mr. McGovern moved and Mr. Miller seconded the motion to approve the February 10, 2009 regular meeting minutes.

Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten, Dr. Whyte

Nays: None. Motion carried.

President’s Report

A. Presentation by Stuart Friedman, Development Consultant for PIRHL

Dr. Whyte introduced Mr. Stuart Friedman, a development consultant, for Partnership for Income Restricted Housing Leadership (PIRHL) to explain the proposed apartment building to be located in front of the library. Mr. Friedman said PIRHL was proposing to build a three story federal tax credit financed apartment building for people over age 55 on City owned property adjacent to the assisted living facility, Sunrise, directly south of the library parking lot on Chagrin Boulevard. He said the City was providing PIRHL an exclusive option to purchase this property for $200,000. He said the apartment building would have 44-60 units consisting of one and two bedroom apartments and serve seniors, age 55 and over, with incomes at or below 60% Area Median Income for Cuyahoga County. Mr. Friedman said PIRLH would be the developer of the property and the Jennings Center for Older Adults would serve as the management company and service provider. He also said PIRHL has applied for housing tax credit financing with the Ohio Housing Financing Agency (OHFA). Mr. Friedman said OHFA receives numerous applications and approves approximately 25-30% of all projects. PIRHL expects a response in July 2009. Mr. Friedman said the apartment building would be architecturally friendly and would be properly maintained to blend with the community. All Board members expressed concern over loss of library parking spaces and library visibility from the street. Mr. Friedman said the current parking lot is poorly designed and PIRHL would redesign the parking lot to maintain at least the same number of parking spaces for library parking and provide additional street signage for the library. In closing, Mr. Friedman asked the library Board for a letter of support for the project to include with their application.

2009-25 Mr. McGovern moved and Mr. Anderson seconded the motion to draft a conditional letter of support for the apartment building as long as the library is held harmless in the number of library parking spaces and the library is an active participant in the planning process.

Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten, Dr. Whyte

Nays: None. Motion carried.

2009-26 Ms. Allen moved and Ms. Shatten seconded the motion to amend the draft letter of support motion to also include planning for security, garbage pickup, street signage, maintenance, traffic and pedestrian flow, and library visibility.

Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten, Dr. Whyte

Nays: None. Motion carried.

B. Letter to the City

Dr. Whyte distributed a copy of the letter she sent to the Mayor and City Council expressing Library Board concerns over communication with the proposed apartment building. Board members agreed the library has taken numerous steps to improve library communication to the City and School and were disappointed in the manner in which the library learned of the proposed apartment building.

C. Change of Board Meeting Dates

Dr. Whyte recommended a temporary change in 2009 Board meetings to the Tuesday following the second Monday due to work scheduling conflicts.

2009-27 Mr. McGovern moved and Mr. Anderson seconded the motion to temporarily change the 2009 regular Board meetings to the Tuesday following the second Monday.

Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten, Dr. Whyte

Nays: None. Motion carried.

Fiscal Officer’s Report

A. Financial Statements

Mr. Piskac reviewed the February 2009 revenue and expenditure financial statements and reported the following:

Revenue Summary

Mr. Piskac reported February 2009 revenues were $1,917,942.68 ($1,742,026.31 – 2008), which is $175,916.37 more than 2008. He reported the Public Library Fund – State Revenue was $314,591.51 for 2009, which was $31,635.46 or 9.1% lower than 2008. He also reported that he learned today that the March distribution would be $18,878.76 lower, or 14.4% less than last year. He said the combined January to March distribution amounts would be approximately 11% lower than 2008. He reported the Real Estate Property Tax revenue was $220,100 higher or 16% higher than 2008 tax revenue due to the replacement levy. He said the library should receive a real estate revenue settlement in March, which would indicate the level of collections. Mr. Piskac said the library investment interest revenue is significantly lower due to low interest rates and lower available cash for longer-term investments. He also reported Meeting Room revenue was $235 lower or 16% lower than 2008.

Expenditure Summary

Mr. Piskac reported February 2009 expenditures were $952,906.64 ($1,047,217.90 – 2008), which is $94,311.26 less than 2008. Mr. Piskac explained approximately $20,400 of the difference is due to the General & Administrative Supplies line item which includes $10,000 for library bags and $8,400 for library cards and $2,000 for Technical Services supplies. He also reported the Books and Pamphlets is less due to discontinuing the $74,000 leased book contract. He commented that expenditures are below the temporary appropriation

Bank Reports

Mr. Piskac reported the month-to-date deposits of $1,060,561.59 exceeded month-to-date withdrawals of $459,176.31 and the library transferred $1,000,000 to Star Ohio because the interest rate was 0.40% compared to Fifth Third Bank’s 0.25%. He also reported the year-to-date deposits of $1,917,942.68 were greater than year-to-date withdrawals of $952,906.64. Lastly, he said the ending bank balance was $1,624,371.85.

Combined Month-to-Date/Year-to-Date Fund Report

Mr. Piskac reported the General Fund had an unexpended balance of $1,527,743.23, $1,385,830.29 in encumbrances, and an unencumbered balance of $141,912.94. He said the high encumbrance balance is due to the library’s annual blanket purchase orders. Mr. Piskac also reported the unexpended balance for all funds was $1,624,371.85, $1,414,341.44 in encumbrances, and $210,030.41 in unencumbered funds.

Investment Report

Mr. Piskac reported the February 2009 investment balance was $1,379,515.15 and the Star interest rate decreased to 0.40% from 0.70% in January.

Mr. Piskac recommended the Board of Trustees approve the February 28, 2009 financial statements as submitted.

2009-28 Ms. Allen moved and Mr. Miller seconded the motion to accept the February 28, 2009 financial statements.

Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten, Dr. Whyte

Nays: None. Motion carried.

B. 2008 Cleveland Foundation Endowment Update

Mr. Piskac reviewed the 2008 Cleveland Foundation Endowment report and said the Endowment received $1,650 in contributions and earned $3,075.25 in income and lost $39,026.50 in value - much of the loss during the fourth quarter. He said the disbursements included $24,021.51 for the library staffing study and organizational assessment with Ms. Jeanne Goodrich. Mr. Piskac said the Endowment Fund annual formula allocation for 2009 is $6,703. He said the library was anticipating $9,000 to cover Mr. Pollock’s consulting services for staff development. He commented the library would include the difference in the operating budget.

C. Unclaimed Fund Agreement

Mr. Piskac reviewed a proposal from The Keane Organization, Inc. regarding an estimated $3,100 unclaimed asset in the Estate of Erma Norville for the library. Mr. Piskac said staff attempted to identify the asset but were not successful. Mr. McGovern asked if the County Prosecutor would be able to help. Mr. Piskac said he would contact the County Prosecutor for assistance. Mr. McGovern said if the County Prosecutor is not able to help then the library should work with The Keane Organization to recover the asset.

Mr. Piskac recommended the Board of Trustees approve The Keane Organization agreement if the County Prosecutor is not able to help locate the asset.

2009-29 Mr. McGovern moved and Mr. Anderson seconded the motion to approve The Keane Organization agreement if the County Prosecutor is not able to help locate the asset.

Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten, Dr. Whyte

Nays: None. Motion carried.

D. Library Banking Agreement

Mr. Piskac reported the library held a bid opening in the Main Library Boardroom on Friday, March 6, 2009. Mr. Piskac said only Mrs. Norma Jean Vaughn, staff member and he were present during the bid opening. Mr. Piskac said he received bids from the following banks.

U.S. Bank

Huntington Bank

Fifth Third Bank (current provider)

First Merit

National City Bank

Charter One

Chase

Key Bank

Mr. Piskac reviewed the results of the banking bids and recommended Fifth Third Bank for banking services and requested authorization to further negotiate credit card services with Fifth Third Bank and National City Bank. He said National City Bank offered a lower merchant fee but did not have enough time to discuss credit card services before the Board meeting.

Mr. Piskac recommended the library approve Fifth Third Bank for library banking services for the five-year period April 1, 2009 to March 31, 2014. He also recommended authorizing him to further negotiate credit card services with Fifth Third Bank and National City Bank.

2009-30 Mr. Anderson moved and Mr. McGovern seconded the motion to approve the five-year banking agreement with Fifth Third Bank starting April 1, 2009 to March 31, 2014 and to authorize Mr. Piskac to further negotiate credit card services with Fifth Third Bank and National City Bank.

Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten, Dr. Whyte

Nays: None. Motion carried.

E. 2009 Final Appropriation

Mr. Piskac reviewed the 2009 General Fund Budget and 4-year projection, Revenue Budget, Appropriation Budget, Capital Budget, Technology Budget.

2009 General Fund Budget and 4-year projection

Revenue

Mr. Piskac said the Public Library Fund was very difficult to estimate due to the current economic uncertainty and said the library anticipates a 6-8% decrease for 2009 with slight future increases. He said the 2009 Real Estate Tax revenue is estimated at a 94.12% collection rate with an estimated 95% collection rate for the projection. Mr. Piskac said the State was considering discontinuing the hold-harmless provision for Tangible Personal Property Tax revenue. He said if the State did not reimburse the library for phased out Tangible Personal Property Tax revenue, the library would lose approximately $50,000. Mr. Piskac said he included the $50,000 in the Other revenue line item but did not appropriate it until a budgetary determination is made by the State. Mr. Piskac also said the Other revenue line item includes approximately $27,000 in cell tower revenue. He said representatives from Alltel contacted the library in December about the Verizon purchase and the possibility that Verizon may not use the library for a cellular tower site, which would result in lost revenue. Mr. Piskac reported the total estimated General Fund revenue is $5,592,735.32 and for all funds $6,446,941.13.

Expenditure

Mr. Piskac reported the 2009 Salary and Leave Benefits line item includes budgetary dollars for full staffing levels for the entire year and projects 2% increases of total salary and leave benefits annually over the next four years. He said the Retirement Benefits is the 14% employers’ portion of OPERS and the Director’s OPERS pickup, which are based on actual employee earnings. Mr. Piskac reported the 2009 Health Insurance renewal was quoted at a 32% increase over 2008 premium levels. He said that Anthem notified the library today that they agreed to reduce the premium to 25% from 32%. Mr. Piskac said that Mr. Dickinson, Mrs. Cullers, and he were working with SEBO on obtaining quotes from other carriers. Mr. Piskac commented that the aggressive increases in health insurance premiums have pushed employer health insurance cost past OPERS employer contributions for all employees and will eventually surpass the entire library material budget. Mr. Piskac said the Other Insurance Benefits line item contains Workers’ Compensation premiums, which will increase substantially due to recent claim activity. Mr. Piskac said the 2009 Materials line item reflects a $74,000 savings from non-renewal of the leased books collection and a $34,000 increase in books to offset the loss of the leased book collection. Mr. Piskac said the Capital Outlay line item includes 36 replacement computers, Evanced Solutions, Inc. meeting room software, furniture for the children and teen departments, and replacement of 14 HVAC actuators in the Main library basement office area. Mr. Piskac reported the Other line item contains purchased services and supplies for the library such as electricity, natural gas, maintenance, etc. Mr. Piskac reported the Transfers to Other Funds is for the repayment of the note to the City for renovations to the library and will be paid in full during 2011. Mr. Piskac said the library uses the zero-based budgeting model and appropriates all available funds. Under this budgetary model, the library is expecting a $444,101 budgetary operating loss, but a $119,018 overall surplus. Mr. Piskac said the library does not expend all budgeted funds and anticipates library operations to at least break even. He commented that the library projection estimates positive ending cash balances over the next four years. Mr. Piskac said the total General Fund appropriation is $6,105,854.90 and for all funds is $6,377,625.37.

Mr. Piskac recommended the Board of Trustees approve the 2009 Revenue Budget, Appropriation Budget, Capital Budget and Technology Budget as submitted.

2009-31 Mr. McGovern moved and Mr. Anderson seconded the motion to approve the 2009 Revenue Budget, Appropriation Budget, Capital Budget and Technology Budget as submitted.

Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten, Dr. Whyte

Nays: None. Motion carried.

Director’s Report

A. Written Report

Mr. Dickinson provided a summary of meetings he attended. He reported the library has been designated a 5-Star library in Library Journal’s new Index of Public Library Service 2009 and received one of the highest ratings within our peer group. He said Shaker Heights Public Library was second only to the outstanding Upper Arlington Public Library. He said spring Staff Day is Friday, March 13 and Dr. Whyte is attending and Board members are invited. He also reported that March 11 is the OLC Legislative Day in Columbus and Ms. Switzer and he are attending. Mr. Dickinson provided a follow up report on the funding loss of the Play & Learn program at the library. He said Play & Learn received a private donation of $6,500 to replace lost grant funding and was able to restore Tuesday morning programs.

B. Architect Contract Update

Mr. Dickinson said he is scheduled to meet March 20 with the Assistant County Prosecutor, Mrs. Joyce Dodrill, school officials, and Mr. Duane Van Dyke to discuss the architect contract.

C. Personnel Policy Revision

Mr. Dickinson recommended the following policy revision (italics) regarding employee responsibilities with library equipment.

753 RESPONSIBILITY OF THE EMPLOYEE

EQUIPMENT PROVIDED BY THE LIBRARY FOR USE OF STAFF IN THEIR DAILY WORK BELONGS TO THE INSTITUTION, HELD IN PUBLIC TRUST. NO LIBRARY EQUIPMENT MAY BE USED FOR INAPPROPRIATE OR ILLEGAL PURPOSES, FOR PERSONAL BENEFIT, TO OPERATE A BUSINESS, OR BE BORROWED FOR USE OFF LIBRARY PREMISES WITHOUT PERMISSION.

EACH EMPLOYEE IS RESPONSIBLE FOR LIBRARY EQUIPMENT IN HIS/HER POSESSION AND MUST EXERCISE REASONABLE CARE FOR ITS SAFEKEEPING. "REASONABLE CARE" IS DEFINED AS MAINTAINING THE UPKEEP OF ANY EQUIPMENT IN AN ACCEPTABLE MANNER, ENSURING THE SECURITY OF ANY EQUIPMENT, AND ENSURING THAT THE EQUIPMENT CAN BE LOCATED AT ANY TIME REQUESTED.

LIBRARY EQUIPMENT THAT IS LOST OR DAMAGED DUE TO AN EMPLOYEE’S NEGLIGENCE, INTENTIONAL ACT, OR FAILURE TO EXERCISE REASONABLE CARE MAY SUBJECT THE EMPLOYEE TO APPROPRIATE DISCIPLINE, INCLUDING FINANCIAL RESPONSIBILITY FOR THE EQUIPMENT.

The library does allow staff to occasionally use the phone, fax machines or workstations for personal reasons in unusual circumstances. However, this use is to be only occasional, done on the employee’s own time, and the library is to be reimbursed for any long distance calls and printing costs. The library reserves the right to retract this permission at any time.

2009-32 Mr. McGovern moved and Mr. Miller seconded the motion to approve the personnel policy revisions regarding employee responsibilities with library equipment.

Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten, Dr. Whyte

Nays: None. Motion carried.

D. 2009-2012 Technology Plan

Mr. Dickinson reviewed the 2009-2012 Library Technology Plan. He commented the library is continuing its computer replacement cycle when funding allows and noted the library is covering more areas of the Main library with wireless connections. After reviewing the technology plan, Mr. Dickinson recommended the Board of Trustees approve the 2009-2012 Technology Plan as submitted.

2009-33 Ms. Shatten moved and Ms. Allen seconded the motion to approve the 2009-2012 Technology Plan.

Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten, Dr. Whyte

Nays: None. Motion carried.

E. 2009 Strategic Plan

Mr. Dickinson said Ms. Switzer and library staff reviewed the service responses and made various clarification revisions and adjusted completion dates to the original service responses. He said a copy of the revisions is included in the Board packet and will be discussed at the April Board meeting.

F. Resolution of Commendation for Pam Ferrazza and Virginia Schoelch

Mr. Dickinson recommended the Board of Trustees approve a Resolution of Commendation for Mrs. Pam Ferrazza for fifteen years of service upon her retirement and Mrs. Virginia Schoelch for twenty years of service with the library as submitted.

2009-34 Ms. Allen moved and Mr. Miller seconded the motion to approve the Resolution of Commendation for Mrs. Pam Ferrazza for fifteen years of service and Mrs. Virginia Schoelch for twenty years of service with the library.

Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten, Dr. Whyte

Nays: None. Motion carried.

New Business

A. Gifts to be accepted and appropriated to the designated funds

Marilyn Kammer Memorial Fund (209-6510)

Randy Kammer

In memory of Dr. Justin MacCarthy $25.00

In honor of Mary Anderson $25.00

In memory of Gene F. Cermak $25.00

In memory of Frederick Hart $25.00

In memory of Jewell Howell $25.00

In memory of Jim Long $25.00

In honor of Adele Sohyoon Aboucher’s birth $25.00

2009-35 Mr. Miller moved and Ms. Allen seconded the motion to accept and appropriate the above gifts.

Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten, Dr. Whyte

Nays: None. Motion carried.

B. Personnel Actions (information only)

None

C. Resolution for Fair Housing Month

Mr. Dickinson explained that the month of April is Fair Housing Month and requested the Board approve the following resolution

WHEREAS, the Shaker Heights Public Library joins with the City of Shaker Heights in deploring discrimination in any form; and,

WHEREAS, the Shaker Heights Public Library supports the City of Shaker Heights in its mission to ensure that every citizen is entitled to safe, accessible, affordable and decent housing; and,

WHEREAS, the Shaker Heights Public Library salutes the City of Shaker Heights for its proud history of working to maintain racial integration and for efforts in fostering a secure and diverse community; and,

WHEREAS, the Shaker Heights Public Library acknowledges the City of Shaker Heights for being “Keepers of the Dream,” when they seek to eliminate illegal housing discrimination against people because of their race, color, religion, national origin, familial status, sex, or disability; and,

WHEREAS, the Shaker Heights Public Library commends the City of Shaker Heights for its 1992 Fair Housing Ordinance and its Fair Housing enforcement program to support and to represent those who believe they have been discriminated against; and,

WHEREAS, the Shaker Heights Public Library applauds the City of Shaker Heights for its establishment of the non-profit Fund for the Future, which provides loans to help homeowners make pro-integrative moves within the city in order to encourage and maintain racially integrated neighborhoods; and,

NOW, THEREFORE, BE IT RESOLVED, that the Shaker Heights Public Library Board of Trustees does hereby celebrate and promote the month of April 2009 as Fair Housing Month and will help the city to promote and to advocate for fair housing for all of its residents. As set forth on this tenth day of March in the year two thousand and nine.

2009-36 Ms. Allen moved and Mr. Anderson seconded the motion to support fair housing month with the above resolution.

Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. McGovern, Mr. Miller, Ms. Shatten, Dr. Whyte

Nays: None. Motion carried.

Announcements

None

Community Comments

None

Adjournment

Dr. Whyte said that there being no further business, Board members unanimously agreed to adjourn the regular board meeting at 8:47 p.m. The next regular meeting of the Shaker Heights Public Library Board of Trustees will be Tuesday, April 14, 2009 at 6:30 p.m. in the Main Library Boardroom.

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Dr. Whyte, President

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David D. Piskac, Fiscal Officer

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Kurt Miller, Secretary