SHAKER HEIGHTS PUBLIC LIBRARY
Board of Trustees
Regular Meeting
Monday, September 11, 2006
Attendance
Members Present: Dr. Benning, Mrs. Karon, Mr. McGovern, Mr. Miller, Mrs. Shatten, Dr. Whyte
Members Absent: Mr. Schorgl
Staff Present: Mr. Dickinson, Mr. Harchar, Ms. Miller, Mr. Piskac, Mr. Pulver, Mrs. Schiller
Others: Evelyn Krent, League of Women Voters Representative
Jane Wood, This Week in Shaker
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.
2006-55 Mrs. Karon moved and Mr. Miller seconded the motion to approve the June 12, 2006 regular meeting minutes.
Roll Call: Ayes: Dr. Benning, Mrs. Karon, Mr. Miller, Mr. McGovern, Mrs. Shatten, Dr. Whyte
Nays: None
2006-56 Mrs. Karon moved and Mrs. Shatten seconded the motion to approve the June 14, 2006 special meeting minutes.
Roll Call: Ayes: Dr. Benning, Mrs. Karon, Mr. Miller, Mr. McGovern, Mrs. Shatten, Dr. Whyte
Nays: None
2006-57 Mrs. Karon moved and Mrs. Shatten seconded the motion to approve the July 14, 2006 special meeting minutes.
Roll Call: Ayes: Dr. Benning, Mrs. Karon, Mr. Miller, Mr. McGovern, Mrs. Shatten, Dr. Whyte
Nays: None
President’s Report
Mr. McGovern said he spoke with Mrs. Shatten, chair of the Planning Committee about the committee’s interview with Main Stream Enterprises, Inc. regarding their strategic plan proposal. Mr. McGovern said that there was no conclusion at the end of the interview about using Main Stream Enterprises, Inc. Mr. McGovern said that Mrs. Shatten spoke with Ms. Amy Morgenstern of Main Stream Enterprises, Inc. and Ms. Morgenstern said her San Francisco clients’ time commitments have changed and expressed concerns about providing enough time for the library’s strategic planning process. Ms. Morgenstern advised Mrs. Shatten that her company might not be the right choice at this time and encouraged the library to pursue another company. Mr. Dickinson noted that he received legal advice from the County Prosecutor’s office regarding the use of the Shaker Heights - Cleveland Foundation fund for underwriting the library’s strategic plan. He said once the library expends the Shaker Heights – Cleveland Foundation funds for any purpose, the expenditure becomes a public expense and would be subject to public bidding guidelines if it were used for capital improvements costing $25,000 or more. Mr. Dickinson noted the strategic plan would not fall under the public bidding requirements but would fall under the library’s internal requirements. Under the library’s internal purchasing requirements, the library would be required to obtain at least two bids for any expenditure of $15,000 or more and require Board of Trustee approval. Mr. McGovern said that the Planning Committee would look into other area consultants.
Dr. Benning commended the Chair and Planning Committee for their work up to this point.
Special Report – John Harchar, Maintenance Services Manager
Mr. Harchar provided a comprehensive orientation of maintenance and custodial services provided by his department. Mr. Harchar commented on past achievements of his department such as construction of a maintenance storage facility at Bertram Woods and future projects such as the removal of one dead tree along Warrensville Center Road, which the City asked to be removed and the removal of a dying tree in the Bertram Woods Reading Garden. Mr. Harchar commented that the maintenance department was able to save the library approximately $30,000 by painting the interior of the Main Library using maintenance staff. Mr. Harchar also commented that he obtained recycling services for both locations so most books and other paper waste can be recycled. In addition, Mr. Harchar said the new truck purchased by the library this year will be used to snowplow both library parking lots.
A. Financial Statements
Mr. Piskac reviewed the June, July and August 2006 revenue and expenditure financial statements and reported the following:
June 2006 – Revenue Summary
Mr. Piskac reported the library received $280,951.88 for June. He explained the Refunds and Reimbursements revenue line item is significantly higher in comparison to 2005 because of reimbursements received by the Friends of Shaker Library and their generous $5,000 summer reading program allocation. Mr. Piskac said the library received $3,027,065.58 in revenue as of June 30, 2006 and is relatively flat in comparison to 2005.
June 2006 – Expenditure Summary
Mr. Piskac reported the library expended $3,187,781.56 ($2,914,442.28 – 2005) as of June 30, 2006.
June 2006 – Bank Reports
Mr. Piskac reported the month-to-date deposit of $280,973.52 was less than the month-to-date withdrawal of $457,364.62 because the library did not receive any real estate tax advances for the month, which is normal for the library. Mr. Piskac also reported the year-to-date deposits were $2,774,112.65 and year-to-date expenditures were $2,934,806.99.
June 2006 – Combined Month-to-Date/Year-to-Date Fund Report
Mr. Piskac reported the General Fund had an unexpended balance of $1,080,902.50 and encumbrances, which include annual blanket purchase orders of $1,272,617.60 net out to an unencumbered balance of ($191.715.10). He also reported the unexpended balance of all funds was $1,232,381.17 and the ending unencumbered balance was ($46,640.89). Mr. Piskac said the negative unencumbered balance is not a concern and would be eliminated in July after the library receives additional real estate advances.
June 2006 – Investment Report
Mr. Piskac reported the investment balance was $1,81,957.59, which is lower than the May ending balance due to transfers to the operating account to cover payroll and operating expenses.
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July 2006 – Revenue Summary
Mr. Piskac reported the library received $1,235,879.61 for July. He explained the Year-to-Date revenue was $4,262,945.19, which is $137,509.16 higher than 2005 Year-to-Date revenue after interfund-revenue is removed. Mr. Piskac said $118,264.14 of the $137,509.16 of additional revenue was from additional Real Estate Property Tax revenue. Mr. Piskac also reported the Year-to-Date Interest on Investments line item was $43,221.40 compared to $26,347.47 in 2005.
July 2006 – Expenditure Summary
Mr. Piskac reported the library expended $3,574,174.89 ($3,301,065.63 – 2005) as of July 31, 2006.
July 2006 – Bank Reports
Mr. Piskac reported the month-to-date deposit of $1,235,879.61 was significantly more than the month-to-date withdrawal of $386,393.33 because the library received real estate tax advances during the month. Mr. Piskac also reported the year-to-date deposits were $4,009,992.26 and year-to-date expenditures were $3,321,200.32.
July 2006 – Combined Month-to-Date/Year-to-Date Fund Report
Mr. Piskac reported the General Fund had an unexpended balance of $1,930,463.36 and encumbrances, which include annual blanket purchase orders of $1,121,423.74 resulted in an unencumbered balance of $809,039.62. He also reported the unexpended balance of all funds was $2,081,867.45 and the ending unencumbered balance was $954,188.83.
July 2006 – Investment Report
Mr. Piskac reported the investment balance was $1,067,129.49, which is lower than the June ending balance due to transfers to the operating account to cover payroll and operating expenses.
August 2006 – Revenue Summary
Mr. Piskac reported the library received $308,521.58 for August. He explained the Year-to-Date revenue was $4,571,466.77, which is $112,355.99 higher than 2005 Year-to-Date revenue after interfund-revenue is removed. Mr. Piskac said $86,264.14 of the $112,355.99 of additional revenue was from additional Real Estate Property Tax revenue. He also reported the Interest on Investments month-to-date revenue line item included $4,062.50 of bond interest. Mr. Piskac also reported the Year-to-Date Interest on Investments line item was $55,237.84 compared to $32,919.76 in 2005.
August 2006 – Expenditure Summary
Mr. Piskac reported the library expended $4,077,771.72 ($3,758,601.71 – 2005) as of August 31, 2006. He reported the Year-to-Date totals of the Library Materials and Information section of the financial statement were $695,902 ($492,532 – 2005) and $1,139,266.57 was appropriated for 2006. Mr. Piskac said the Year-to-Date actual expenditures were approximately 61% of the annual appropriation assuming an even allocation of the appropriation during the calendar year, which would be 67%. Mr. Piskac said total Library Materials and Information section were approximately $200,000 more than 2005 but under the 2006 calendar year spending estimates.
August 2006 – Bank Reports
Mr. Piskac reported the month-to-date deposit of $308,521.58 was less than the month-to-date withdrawal of $503,596.83 because the library did not receive any real estate tax advances during the month. Mr. Piskac also reported the year-to-date deposits were $4,318,513.84 and year-to-date expenditures were $3,824,797.15 and the ending bank balance was $1,886,792.20.
August 2006 – Combined Month-to-Date/Year-to-Date Fund Report
Mr. Piskac reported the General Fund had an unexpended balance of $1,735,156.04 and encumbrances, which include annual blanket purchase orders, of $1,026,551.01 resulted in an unencumbered balance of $708,605.03. He also reported the unexpended balance of all funds was $1,886,792.20 and the ending unencumbered balance was $849,019.79.
August 2006 – Investment Report
Mr. Piskac reported the investment balance was $822,726.19, which is lower than the July ending balance due to maturity of a $250,000 bond and its proceeds were transferred to the Fifth Third operating account since Fifth Third held the bond.
Mr. Piskac recommended the Board of Trustees approve the June 30, 2006, July 31, 2006 and August 31, 2006 financial statements as submitted.
2006-58 Mr. McGovern moved and Dr. Whyte seconded the motion to accept the June 30, 2006, July 31, 2006 and August 31, 2006 financial statements.
Roll Call: Ayes: Dr. Benning, Mrs. Karon, Mr. McGovern, Mr. Miller, Mrs. Shatten, Dr. Whyte
Nays: None. Motion carried.
B. Capital Expenditures Report
Mr. Piskac reported the Year-to-Date General Fund capital expenditures were $35,234.05 (Budget - $281,530) and the total Year-to-Date Building Fund capital expenditures were $26,172 (Budget - $113,455). Mr. Piskac reviewed the material expenditure line items and requested an increase for the following line item expenditures:
|
Fund |
Department |
Description |
Amount |
|
101 |
Circulation |
10 Step Stools |
$149.91 |
|
|
Maintenance |
Tow Kit |
59.50 |
|
|
Technical Services |
Fax Machine |
199.99 |
|
|
Maintenance |
Repair & Restripe Parking Lot – Bertram Woods |
1,270.00 |
|
|
Business Office |
Line Printer |
469.95 |
|
|
|
Total: |
$1,999.44 |
Mr. Piskac also reported the interior painting at Main was approximately $2,623.40 which is significantly lower than the estimate of $46,000. Mr. Piskac said the library saved approximately $30,000 based on budget by using library personnel. He also reported the library first floor carpeting for Main would be approximately $24,000 less than the estimate. Mr. Piskac said the $20,605 budgeted for the Bertram Woods waterproofing project would not be used this year because new bids would be obtained. Mr. Piskac also reported that he was proposing to re-allocate the $5,000 from the Bertram Woods fund (208) to remove dead trees per Mr. Harchar’s report.
Mr. Piskac recommended the Board of Trustees approve the Year-to-Date expenditure report, to approve the increased appropriations for the above line items, and to approve the re-allocation of the Bertram Woods fund (208) for tree removal. Mr. Piskac noted the increased appropriations would come from the budgetary savings from Main interior painting and the total appropriation for capital expenditures would remain unchanged.
2006-59 Mrs. Shatten moved and Dr. Benning seconded the motion to approve the Year-to-Date expenditure report, to approve the increased appropriations for the above line items, to approve the re-allocation of the Bertram Woods fund (208) for tree removal and to approve the re-allocation of Main interior painting line item to fund the increased appropriations.
Roll Call: Ayes: Dr. Benning, Mrs. Karon, Mr. McGovern, Mr. Miller, Mrs. Shatten, Dr. Whyte
Nays: None. Motion carried.
C. CMI Software Upgrade/ GAAP Reporter Software
Mr. Piskac reviewed the CMI Software Upgrade from the library’s existing character based (DOS) to CMI Client Server (Windows based) software. Mr. Piskac said the proposal includes on-site navigation training in the new software. He said that CMI is no longer providing updates for the character based software and in time would not provide support. Mr. Piskac also reviewed the GAAP Reporter Software from CMI to help the library generate GASB-34 formatted reports, which he believes would be mandatory in time. Mr. Piskac added the library is not mandated to provide annual financial statements in GASB-34 format but would receive a dual opinion if it did not. Mr. Piskac said an entity would receive an adverse opinion if they did not prepare their annual statements in the GASB-34 format. He stated an adverse opinion would invalidate an entity’s federal awards schedule, which could impact federal funding for programs. He said the library is not currently receiving federal funding, but it would be prudent for the library to start preparing annual financial statements in GASB-34 format before it is mandated. Mr. Piskac said the total software cost is $14,850.
Mr. Piskac recommended the Board of Trustees approve the CMI Software Upgrade to Client Server and the GAAP Reporter Software as submitted.
2006-60 Mrs. Karon moved and Dr. Benning seconded the motion to approve the purchase of the CMI Software Upgrade to the Client Server version and the GAAP Reporter Software.
Roll Call: Ayes: Dr. Benning, Mrs. Karon, Mr. McGovern, Mr. Miller, Mrs. Shatten, Dr. Whyte
Nays: None. Motion carried.
D. Cleveland Foundation Financial Report
Mr. Piskac reported the Shaker Heights – Cleveland Foundation balance ending June 30, 2006 is $175,286.21 and the amount of income available for use by the library is $27,966. Mr. Piskac also reported the investment income was $1,469.23 in comparison to fund fees of $1,403.10 which would net the fund $66.13 of income. However, he reported the fund appreciation grew by $7,647.86.
E. TIF Exemption
Mr. Piskac reported that the City of Shaker Heights and Crescendo Properties have reached an agreement for the sale and redevelopment of seven historic retail buildings located on the south side of Chagrin Boulevard opposite the Shaker Towne Centre Shopping Center. Mr. Piskac said the City of Shaker Heights has committed to make improvements to the public parking lot behind the retail buildings not to exceed $450,000 and to provide storefront grants to the Developer of up to $245,0000 ($35,000/building x 7 buildings). The parking lot improvements will be funded with Tax Incremental Financing debt (TIF). In order to service the TIF debt and to facilitate other catalytic commercial redevelopment, the City of Shaker Heights proposes to exempt 75% of the improvement value estimated to $2 million (exempted value equals $1.5 million). In addition, the estimated annual real property tax payments that will be replaced by the TIF payments in lieu of taxes are approximately $50,000 to $60,000. Mr. Piskac reported that the library in not eligible to receive a portion of the TIF revenue because the library is not located within the TIF district. However, if the library was located within the TIF district, the library might receive $1,644 to $1,972 per tax year. Mr. Piskac said the library would receive additional revenue from the non-exempt part of the property improvement value (estimated $500,000) and the $560,000 land sale, which would result in estimated revenue of $1,315 per tax year. Also, he said the TIF payments would be used for repayment of the TIF debt and for infrastructure improvements within the TIF district. Mr. McGovern said that the new landowners would pay the same amount of taxes if the TIF were not part of the redevelopment land deal. Mr. McGovern said the library would benefit indirectly from the investment in the community.
F. Annual Library Budget Hearing
Mr. Piskac reported the annual library Budget Hearing is being hosted by Mr. Steve Wood at Cleveland Heights – University Heights Public Library on September 21, 2006 at 9:00 a.m.
Director’s Report
A. Written Report
Mr. Dickinson reported the following:
B. Staff Day Agenda
Mr. Dickinson reviewed the agenda for September 15 Staff Day at Squire Valleevue Farm in Hunting Valley, Ohio.
C. Bids for Automated Doors and Letter of Recommendation
Mr. Dickinson reviewed the bid tabulation from the August 31 bid opening for the Main Library entrance renovation. The library received three bids for the renovation work. They are as follows:
Contractor Base
bid Alternate #1
Whitehouse Construction $54,500 $2,100
Erie Pointe Construction No bid No Bid
Sterling Group $41,300 $1,400
B.S.C. Construction $48,530 $450
Note: Alternate #1 is the cost to replace the half round glass above the entrance doors pending the contractor’s confirmation of whether the existing round top glass can be cut or not. Alternate #1 is not part of the base bid and would be added if necessary.
Mr. Dickinson referred to the recommendation letter from Mr. Jim Neville, Architect of Christian & Klopper, Inc. indicating the Sterling Group was the lowest responsive and responsible bidder ($41,300) and recommending acceptance of their bid. He added that $50,000 was the not to exceed budget amount in the RFP. Mr. Dickinson added that Alternative #1, which is the replacement of round top glazing, would not be known by the contractor until the glass is removed to determine if it can be cut down or not. He said the cost of Alternative #1 is $1,400 and is not part of the base bid. Mr. Dickinson recommended to the Board of Trustees to accept the bid and Alternative #1 (if necessary) from Sterling Group for the Main Library entrance renovation.
2006-61 Dr. Whyte moved and Mr. Miller seconded the motion to accept the $41,300 bid and Alternative #1 (if necessary) from the Sterling Group for the Main Library entrance renovation.
Roll Call: Ayes: Dr. Benning, Mrs. Karon, Mr. McGovern, Mr. Miller, Mrs. Shatten, Dr. Whyte
Nays: None. Motion carried.
D. Projected LLGSF Distribution
Mr. Dickinson reviewed the estimated 2007 LLGSF projections from the Ohio Department of Taxation. Based on the estimate, Mr. Dickinson noted the library would receive approximately a seven percent (6.7511121%) increase in LLGSF funding. This percentage increase would equal approximately $133,908.80 more funding than under the current LLGSF distribution agreement.
E. Resolutions of Commendation
Mr. Dickinson reported the following Resolutions of Commendation for employees and their years of service with the library.
Joyce Becker 20 years
Margaret Chin 20 years
Eileen Seppelt 20 years
Sara Schiller 30 years
Mr. Dickinson recommended the Board of Trustees approve the above mentioned Resolutions of Commendation for their library service.
2006-62 Mrs. Shatten moved and Mrs. Karon seconded the motion to accept the Resolutions of Commendation for the above mentioned employees and their years of service.
Roll Call: Ayes: Dr. Benning, Mrs. Karon, Mr. McGovern, Mr. Miller, Mrs. Shatten, Dr. Whyte
Nays: None. Motion carried.
New Business
A. Gifts to be accepted and appropriated to the designated funds
Restricted Contribution Individual (101-6110)
Leann Rayburn
Towards purchase of new flagpole $100.00
Unrestricted Contribution Individual (101-6510)
Donald Crone
In memory of James Charles Robinson $30.00
Nicholi Evans
In memory of Laurie Butts $30.00
Bonnie and Abraham Kay
In memory of Alana Kay $15.00
Bertram Woods Branch (208-6510)
Priya Junnar
In appreciation of staff $25.00
Marilyn Kammer Memorial Fund (209-6510)
Randy Kammer
In memory of Beatrice R. Reeves and $50.00
Ross Fredrichs
In memory of Miriam Edwards and Anne Miller $50.00
In memory of Ethel Gilliam $50.00
Frances Belman Fund (210-6110)
Eleanor Kushnick $35.00
Jane and James Littwitz $25.00
Gail and Barry Meyer $25.00
Barbara and Leroy Reed $30.00
Barbara and Jerry Schlanger $25.00
Linda and Tom Strauss $50.00
In memory of Peggy Strauss
2006-63 Mr. Miller moved and Dr. Benning seconded the motion to accept and appropriate the above gifts.
Roll Call: Ayes: Dr. Benning, Mrs. Karon, Mr. McGovern, Mr. Miller, Mrs. Shatten, Dr. Whyte
Nays: None. Motion carried.
None
Announcements
The next regular Board meeting is scheduled for October 9 in the Main Library Boardroom at 6:30 p.m.
Adjournment
There being no further business, Mr. McGovern moved and board members unanimously agreed to adjourn the regular board meeting at 7:47 p.m.
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Ken McGovern, President
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David D. Piskac, Clerk-Treasurer
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Donna Whyte, Secretary