SHAKER HEIGHTS PUBLIC LIBRARY
Board of Trustees
Regular Meeting
Monday, April 14, 2008
Attendance
Members Present: Ms. Allen, Mr. Anderson, Mr. Miller, Mr. McGovern, Dr. Whyte
Members Absent: Dr. Hutt, Ms. Shatten
Staff Present: Mr. Dickinson, Ms. Miller, Mr. Piskac, Mr. Rossman, Mrs. Simon
Others: F. Drexel Feeling, President, Shaker Heights City Schools Board of Education
Evelyn Krent, League of Women Voters Representative
Mr. McGovern called the regular meeting of the Shaker Heights Public Library Board of Trustees to order at 6:30 p.m. in the Main Library Boardroom.
Mr. Feeling administered the oath of office to newly appointed board member Mr. Anderson. He will serve through March 31, 2010 and is serving the unexpired term of Mr. Schorgl.
Approval of Minutes
2008-37 Ms. Allen moved and Mr. Miller seconded the motion to approve the March 10, 2008 regular meeting minutes.
Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. Miller, Mr. McGovern, Dr. Whyte
Nays: None. Motion carried.
President’s Report
A. Revision of Board Bylaws
Mr. McGovern reported that SB 185 was recently passed and one provision of the bill changes the Clerk-Treasurer title to Fiscal Officer. Mr. McGovern asked for a motion to change the Clerk-Treasurer title to Fiscal Officer in the Board’s bylaws.
2008-38 Dr. Whyte moved and Mr. Miller seconded the motion to approve the title change from Clerk-Treasurer to Fiscal Officer in the library bylaws.
Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. Miller, Mr. McGovern, Dr. Whyte
Nays: None. Motion carried.
Mrs. Simon presented a PowerPoint presentation about her department’s role in the library. Afterwards, Mrs. Simon said that her staff consists of two part-time employees. Mrs. Sheri Lawrence does graphics and Mrs. Krystal Dennis performs clerical duties. Mrs. Simon said that she spends a considerable amount of time doing outreach and maintaining the library image in the Shaker community. Mr. McGovern asked Mrs. Simon about her reflections on the recent library levy issue. Mrs. Simon said the library was fortunate because no fund raising was necessary because the Friends of Shaker Library donated funds over the years for this purpose. She said the committee emphasized use and value when marketing the library issue to the public. Ms. Allen asked Mrs. Simon how the Library Board could help in the public relations function. Mrs. Simon responded that Board members are ambassadors of the library and sharing their knowledge about the library to the public would be helpful. In addition, she said the best public relations source is the staff.
Treasurer’s Report
A. Financial Statements
Mr. Piskac reviewed the March 2008 revenue and expenditure financial statements and reported the following:
Revenue Summary
Mr. Piskac said the library received $1,902,441.20 ($2,081,217.56 – 2007) in year-to-date revenue, which is $178,776.36 less than year-to-date 2007 after inter-fund transfers are removed. He explained that $158,758.60 of the revenue shortfall is due to the new LLGSF disbursement formula. He said the library is expecting to receive $1,864,001.25 of LLGSF funding for calendar year 2008 but the monthly disbursement amounts will be different than 2007 especially with February 2008 being a much smaller proportion then last year. He commented that under the new LLGSF formula, the library is approximately $1,106.12 or .24% under estimates, but the library is budgeted to receive .8% more funding than last year.
Expenditure Summary
Mr. Piskac reported March 2008 expenditures of $1,440,866.62 ($1,628,052.48 – 2007) after inter-fund transfers are removed, which is $187,920.46 less than 2007. Mr. Piskac explained the library paid the City $180,734.60 for the lease in March last year and did not receive the invoice for 2008 as of today. He also said the library did not receive a March invoice for April’s $25,870 premium from Anthem for the library’s new health insurance effective April 1. Mr. Piskac said the Salaries and Employee Benefits expenditures line item for the current month (March) is $109,497.52 less than 2007. He said March was a three-pay month in 2007 and February was a three-pay month in 2008. He further said the year-to-date Salaries and Employee Benefits expenditures were in line with budgetary expenditures and only $395.83 more than 2007. Mr. Piskac reported the library spent approximately $18,594.14 more than year-to-date 2007 with these material timing differences in expenditures.
Bank Reports
Mr. Piskac reported the month-to-date deposits of $160,414.89 were less than the month-to-date withdrawals of $393,648.72 due to low real estate receipts, which is common for the month of March. He also reported the year-to-date deposits $1,902,441.20 were greater than year-to-date withdrawals of $1,440,866.62. Lastly, he said the ending bank balance was $1,265,961.02.
Combined Month-to-Date/Year-to-Date Fund Report
Mr. Piskac reported the General Fund had an unexpended balance of $1,094,607.62, $993,116,65 in encumbrances, and an unencumbered balance of $101,490.97. 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 were $1,265,961.02, $1,000,370.50 in encumbrances, and $265,590.52 in unencumbered funds.
Investment Report
Mr. Piskac reported the March 2008 investment balance was $396,267.87 and the Star interest rate decreased to 2.98% from 3.61% in February.
Mr. Piskac recommended the Board of Trustees approve the March 31, 2008 financial statements as submitted.
2008-39 Ms. Allen moved and Dr. Whyte seconded the motion to accept the March 31, 2008 financial statements.
Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. Miller, Mr. McGovern, Dr. Whyte
Nays: None. Motion carried.
B. Employee Health Insurance Changes and HRA Plan
Mr. Piskac said that Mr. Dickinson, Mrs. Cullers, and he met with Mrs. Heather Campbell of Structured Employee Benefits of Ohio (SEBO) earlier this year to discuss the library’s health insurance options. He said Anthem informed SEBO the library’s renewal would be 46.9%. Mrs. Campbell advised library management that the library is not marketable at this time to other health insurance carriers due to the poor rating of its employees. Mrs. Campbell stated that SEBO would revisit looking at health carrier options once the rating of the employee group changes. Mr. Piskac said Mrs. Campbell obtained health insurance plan options from Anthem and said the only option that would maintain the same level of benefits for library employees is the HRA Plan. Mr. Piskac said the primary difference of the HRA plan is the order of paying of claims. Under single coverage, he said the library would pay the first $1,000 of expenditures and the employee would pay the next $1,500 in deductibles and then Anthem would pay claims after the first $2,500. Under non-single coverage, he said the library would pay the first $2,000 of expenditures and the employee would pay the next $3,000 in deductibles and then Anthem would pay claims after the first $5,000. Mr. Piskac said the full cost comparison between the current plan and the HRA plan would increase the library premium by 21.3% ($328,279 vs. $398,260). However, he said that Mrs. Campbell stated, based on her experience, most HRA plans are 25% utilized by the employer. Mr. Piskac said based on Mrs. Campbell’s statement, the library health insurance would increase 8.75%.
Mr. Miller asked about the financial impact on employees with the new plan. Mr. Piskac said the employee out of pocket liability remains the same amount and the library offers a FSA plan, which would help spread the employee liability over the year. He also said the Anthem HRA Plan did not allow any flexibility for the library to increase its share and decrease the employee share.
Mr. Piskac recommended the Board of Trustees approve the employee health insurance changes and new HRA Plan effective April 1, 2008.
2008-40 Dr. Whyte moved and Ms. Allen seconded the motion to approve the employee health insurance changes and new HRA Plan effective April 1, 2008.
Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. Miller, Mr. McGovern, Dr. Whyte
Nays: None. Motion carried.
C. Fifth Third Bank HRA Account
Under the new HRA Plan, the library is required to provide automated clearing house (ACH) access to a bank account for withdraws by Anthem for claims paid on behalf of the library. Mr. Piskac recommended that a separate NOW bank account be established for these withdrawals and maintain a minimum $2,292 balance as required by Anthem. He said the library would receive an invoice from Anthem a few days before the actual ACH. Mr. Piskac said that he would transfer the funds from the library operating account to the HRA account as needed.
Mr. Miller asked Mr. Piskac about the extra workload to transfer funds, which could be a few times every week. Mr. Piskac said he is working with Fifth Third to perform the task on-line to make it easier than calling it in.
Mr. Piskac recommended the Board of Trustees approve the opening of a new NOW bank account with Fifth Third Bank for paying the library portion under the new employee HRA Plan.
2008-41 Ms. Allen moved and Dr. Whyte seconded the motion to approve the opening of a new NOW bank account with Fifth Third Bank for paying the library portion under the new employee HRA Plan.
Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. Miller, Mr. McGovern, Dr. Whyte
Nays: None. Motion carried.
Director’s Report
A. Written Report
Mr. Dickinson provided a summary of meetings he attended. He also said it was the 50th anniversary of National Library Week and the library would incorporate this theme into some library programs. Mr. Dickinson said he attended the March 26-29 PLA conference in Minneapolis. He also said he had the opportunity to preside with former library director, Barbara Luton, over the library’s 9th Annual Art Competition. He discussed the various departments that he worked in over the past few weeks and commented that while working in Technical Services that he found a mistake by the Library of Congress!
B. Strategic Planning Progress Report, First Quarter
Mr. Dickinson reviewed the Responsibility Chart and 1st Quarter 2008 status report on Objectives for the Library’s Strategic Plan. He said that two of the objectives intended to increase attendance for the Teen Center have been eliminated due to recent fire code restrictions on room capacity.
C. Funding Formula for Public Libraries of Cuyahoga County
Mr. Dickinson reported the area library directors were able to meet to discuss the allocation of excess receipts, which are received above the 2007 base year distribution level in the Public Library Fund. Mr. Dickinson said the only allocation method agreed upon was the 2000 U.S. Census population figures. He said the library would receive 2.44% of any excess receipts, which is approximately .4% less than the 2.83520% current base distribution. Mr. Dickinson said the per capita basis for the excess receipts formula affected some libraries favorably and others unfavorably. Mr. Dickinson said the proposed five-year (2009 to 2013) funding formula agreement has to be approved by all participating Board of Trustees to take effect. He recommended the Board of Trustees approve the excess funding formula agreement as proposed.
2008-42 Ms. Allen moved and Mr. Miller seconded the motion to approve the five-year (2009 to 2013) funding formula agreement for allocating excess receipts, which are received above the 2007 base year distribution level in the Public Library Fund.
Roll Call: Ayes: Ms. Allen, Mr. Anderson, Mr. Miller, Mr. McGovern, Dr. Whyte
Nays: None. Motion carried.
D. Legislative Update
Mr. Dickinson said he received an email from Linda Murray of OLC regarding the recent introduction of HB 521, which has the potential to restructure local government. HB 521 includes schools and libraries and is being closely monitored by OLC.
Mr. Dickinson said that May 6 is OLC Legislative Day in Columbus.
E. Youth Development Initiative
Mr. Dickinson said he is working with the Shaker Prevention Coalition as neighborhood council on the Youth Development Initiatives planning grant to be submitted to the Cleveland Foundation. He said the $175,000 grant would be used for a 6-month planning period and then a $350,000 additional grant would provide operating support for 2009-2010.
New Business
A. Gifts to be accepted and appropriated to the designated funds
Bertram Woods Branch – Unrestricted (208-6510)
In memory Mildred Hirshstein
Arlene and Sol Libman $20.00
Kathy Marsh and Dr. Vlad Vekstein $100.00
Esther Meckler $20.00
Ann and Charles Newman $25.00
Marla & Joseph Shafran Foundation $36.00
Penelope and Michael Shemo $100.00
Dorothy Wechsler and Marcy Szabados $100.00
Marilyn Kammer Memorial Fund (209-6510)
Randy Kammer
In memory of Milton Berman $25.00
In memory of Alex Sekine $25.00
B. Personnel Actions (information only)
Pam Tidwell,
promoted from Substitute Librarian to Adult Services Librarian,
Level 111, half-time, effective March 31, 2008
Rachel Babura, Adult Services Associate, Level 109, half-time, hired effective April 14, 2008
Announcements
None
Community Comments
None
Adjournment
Mr. McGovern said that there being no further business, board members unanimously agreed to adjourn the regular board meeting at 7:48 p.m. The next regular meeting of the Shaker Heights Public Library Board of Trustees will be Monday, May 12, 2008 at 6:30 p.m. in the Main Library Boardroom.
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Ken McGovern, President
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David D. Piskac, Clerk-Treasurer
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Jeanne Shatten, Secretary