Board of Trustees
Pierce County Library System
Regular Meeting, October 19, 2011
Call To Order
Vice-Chair Stephen Albers called to order the regular meeting of the Pierce County Rural Library District Board of Trustees on October 19, 2011, 3:31 pm. Board members present were Robert Allen, Linda Ishem and Allen Rose. J.J. McCament was excused.
Public Comment
There was no public comment.
Consent Agenda
1. Minutes of the September 14, 2011 Regular Meeting of the Board of Trustees
2. September 2011 Payroll, Benefits and Vouchers in the total amount of $2,716,619.81
a. Payroll Warrants, 3212 - 3225, dated 09/01/11 – 09/30/11 in the amount of $17,577.95
b. Payroll Disbursement Voucher dated 09/06/11 in the amount of $563,945.11
c. Payroll Disbursement Voucher dated 09/21/11 in the amount of $537,898.26
d. Account Payable, dated 09/21/11 in the amount of $2,612.40
e. Accounts Payable Warrants, 615535 - 615809 dated 09/01/11 – 09/30/11 in the amount of $1,594,586.09
Mr. Rose moved for approval of the consent agenda. Ms. Ishem seconded the motion and it was passed.
Board Member Report
Mr. Allen: Mr. Allen visited the University Place Library. His impression was that the interior is amazing. He also noticed that the library was packed. He was impressed with how much activity was going on with people in the business and employment section, lots of teens in the teen center and kids in children’s section. His impression of the exterior was ‘”Wow, this is in the middle of a construction site”. Ms. Parikh noted that a developer will be building an apartment/retail complex next to the library so the area will remain a construction site for some time.
Ms. Ishem: Ms. Ishem was very pleased that the Pierce County Library now offers customers the opportunity to check-out free passes to the Museum of Glass. She asked how many passes were available. There are five passes at larger branches and 3 available at smaller branches. The passes have the same loan period as other library materials. Passes are also available for the Tacoma Art Museum and the Children’s Museum.
Mr. Albers: He stated that he is happy and excited to see the new Fife Library coming together so well.
Officer Reports
1. Public Library Association Conference: Ms. Parikh announced that the Public Library Association conference is scheduled for March 13 – 17, 2012 and will be held in Philadelphia. She encouraged Board members to attend and if they were interested to let her know as soon as possible.
2. Digital Dowload Snapshot: In response to a question about current usage, Lisa Bitney reported that demand and requests have increased since the introduction of materials that are compatible with Kindle.
3. The Lucky Day Collection: Lisa Bitney reported that a new browsing program was initiated. The collection contains current materials that are high demand and have long hold lists. The idea is to encourage customers to come into the branch and ‘reward’ them by having access to these materials immediately. Holds can’t be placed on these items. It has been very popular and the collection is showing good circulation statistics.
4. Comprehensive Plan Amendments: The Pierce County Council postponed the vote on the 2011 Amendments to the Pierce County Comprehensive Plan until October 25th in order to consider the Orton Junction proposal in Sumner. The Library submitted amendments that update existing and future service level guidelines and recommendations for facilities and service improvement within each community. Pierce County Planning staff has recommended approval of the Pierce County Library System section of the comprehensive plan. This is the first year the library was invited to participate in the annual update of the county’s strategic planning process.
5. Literacy: Mr. Albers stated that he was pleased to see the library system involved in the grant award from the Institute for Museum and Library Services for Project Views, an early learning initiative.
6. Management Structure: The Board had been sent information about the re-organization of the Library’s management structure. Mr. Allen asked for more information about “reading advocacy”. Ms. Bitney stated that the intent is to help people find that next great read by connecting with them and learning what they want to read, see, and view. Sally Porter Smith reported that the Customer Services Experience is what had been broadly been called Public Services. The change is basically a re-orientation of branch services, children’s services and adult services to connect them together and align the mission. Mr. Allen asked if the Youth Services Director would have direct managerial oversight of three 3 branches in addition to the children’s services. Ms. Porter-Smith said yes, and noted that the three branches are geographically grouped. Each manager is now responsible for a small, medium and large-sized branch.
Unfinished Business
2. Fife Project Updates: Lorie Erickson, Facilities Director, reported on construction status of the new branch. The building is being sealed, the parking lot has been poured and striped on the east side. Tie-downs on the building are almost complete. Street lights will be installed next week. Gas and power will be hooked up on Monday. A Pierce Transit bus stop will be installed in front of the building. It is expected that the building will be turned over to the library on October 31st. Shelving installation begins on October 31st and computer stations will be installed the 1st week of November.
Executive Session
At 4:04 pm Ms. Ishem moved to enter into executive session as per RCW 42.30.110 for 25 minutes to discuss potential litigation. Mr. Allen seconded the motion and it passed. The session was reopened to the public at 4:30 pm.
Unfinished Business Continued
1. University Place Library:
Construction Status: Ms. Erickson reported that only a few items remained on the completion list. The exterior sign is in place.
Condominium Declaration and Operating Agreement: Ms. Parikh reported that the University Place City Council approved the condominium declaration and operating agreement with the Library System on a vote of 6 to 1. The Councilmember who cast the dissenting vote was concerned about the library having a controlling vote in the condo board.
Bill Holt, Library attorney, reported that the Condominium Declaration presented this date has been approved by both himself and the University Place city attorney. Exhibit C has been revised to list specific ‘limited common elements’. The Operating Agreement has also been reviewed and found acceptable by the attorneys for the library and city.
Mr. Rose moved to authorize Neel Parikh, Executive Director, to sign the Condominium Declaration and Operating Agreement between the Pierce County Library System and the City of University Place, and to authorize such changes as recommended by the Library’s legal counsel. Ms. Ishem seconded the motion and it passed.
Property Closing Procedures: Mr. Holt reported that there are still a number of items to complete before closing is finalized. Ms. Parikh distributed a checklist of outstanding actions. The closing is also delayed due to ‘substantial completion’ issues, such as the exterior elevator being fully operational and the final certificate of occupancy being issued. It was noted that the Library System will not own the University Place Library until the closing is completed and therefore, is not yet responsible for some building operational costs.
3. 2012 Budget: Estimated Revenue and Expenditures:
a. Review of Regular 2012 Draft Revenue and Expenditures: Ms. Parikh reported that this is the third year that the library has had reductions in its budget, but the first year that revenue actually decreased. It is projected that revenue will continue to decrease for the next two to three years.
In preparing a balanced budget, strategic decisions were made based on priorities:
· Maintain the levy promises
· Good stewardship of the taxpayer’s dollar
· Ensure that the library provides up to date and future-oriented services
· Build a customer base for the future.
A decision was also made to not slash services and minimize reductions of staff, while keeping the levy promises. When the library made the levy promises, the goal was to maintain them for six years. 2012 is the 6th year. In addition, the following operational reductions were made:
· No pay increase for managerial staff, except branch managers who took an 11% reduction in pay in 2010.
· Significantly reduced bookmobile services.
· A reduction in the salaries planning budget to match a projected level of unfilled positions.
· Collection processing fees to come out of the materials budget.
· A re-organization of the Human Resources department that reduced staff costs.
· Operational changes in the Communications department to print less.
Bookmobile Services: Ms. Porter Smith reviewed the proposal to significantly reduce bookmobile services. The decision was made after extensive analysis of the service. As part of the evaluation, the library reviewed:
· The number of people using the bookmobile.
· The number of items people checked out on bookmobiles.
· The number of bookmobile customers using branch libraries in addition to the bookmobile.
· Schedules and times allocated to bookmobile stops and how the schedule met their needs.
· The effectiveness and efficiency of bookmobile service delivery for residents in specific communities.
The Board had been sent the analysis and service details prior to the meeting. It was noted that less than 1% of all checkouts are from the family bookmobile. The Library will eliminate 11 bookmobile stops and retain 4. No stops will be eliminated for the Explorer Kids bookmobile.
Ms. Porter Smith reported that all bookmobile customers had been informed by letter of the elimination of stops in January 2012. She also is going to each stop and answering questions. She stated that this is a very difficult and emotional loss for these customers. The comments she most hears are that they are “heart-broken, angry and it’s a loss of community”. Some have indicated that they may use a library branch when they go shopping, but they won’t check out DVDs because they aren’t sure when they will be able to return the item. In addition, Bookmobile staff is upset because they have worked to create the service and establish bonds with their customers and the community.
Mr. Allen asked if there were plans to serve those people who can’t get to the library. Ms. Porter Smith responded that a number of them are homebound and can be served through the library’s homebound service. She is also investigating delivery options for holds pick-up, perhaps with a partnership. Although the library can’t provide a browsing option, different service aspects are being researched. She also cautioned that other Outreach services are being evaluated and hard decisions may need to be made in the future due to negative revenue projections.
Mr. Albers noted that the library has been trying to maintain what it’s doing without any kind of service cutbacks. He said that “no good deed goes unpunished.” He hopes it would be remembered that we’ve made every effort not to cut services. Ms. Porter Smith mentioned that the library was able to transfer two outreach staff members to the Fife Library. The hours of one bookmobile driver have been cut down to the point where it is effectively a lay-off.
Ms. Parikh noted that proposed budget includes efficiencies such as the “Vend to Print,” an online timecard system and media security systems that will greatly reduce loss. At the next Board meeting, she will have a list of efficiencies already accomplished, with their fiscal impact.
It is also her recommendation that the library use $178,000 of cash reserves to fill the remaining budget gap. It is important to retain funding for the first four months of the year before revenue is received, but operational costs will be less for that time period than last year.
2012 Pre-Certification of Property Tax Levy: Mr. Jo reported that he had anticipated a 7.3% drop in revenue, but the preliminary levy certificate indicates a revenue loss of 8.02%, equaling a $1.9 million shortfall for 2012. Estimated revenue for 2012 is $25.7 million.
IPD for 2011 Property Tax Levy: The Implicit Price Deflator (IPD) was reported as 2.755%. The IPD is used for calculating tax levies as required by Initiative 747. As this year’s IPD is higher than 1%, no Board action is required to levy at the statutory limit. In addition, the library has reached its statutory limit of 50¢ per $1,000 assessed value.
Review of 2012 Draft Revenue and Expenditures: Mr. Jo noted that the 2012 budget has not yet been balanced due to a shortfall of $178,000. The total revenue reduction for 2012 is $1.87 million. The 2011 budget was balanced based on a -6.3% decrease. The 2013 budget will have an additional -8.2% decrease in revenue. A balanced budget will be presented at the next Board meeting.
b. Review of Regular 2011Capital Improvement Budget and 2012 Capital Improvement Plan: Mr. Jo reported that construction projects are winding down. The majority of PCLS facilities were built in a 5-year time frame and the library has now finished roofing, HVAC repair and carpet replacement projects so the buildings are in good shape for awhile.
c. 2012 – 2016 Cash Flow: The Board was given a draft of a new format of the cash flow chart, intended to show the effect of revenues and expenditures, anticipated shortfall, available cash and a cash strategy to close the budget gap and how that will impact future cash flow. .
Mr. Albers requested that the cash flow chart include capital improvement figures. Mr. Allen asked that a percentage column be included in the ‘unreserved cash flow’ portion as a percentage of operating budget.
Mr. Albers noted that the big question is what future revenue will be. Current projections show some really bleak numbers and the library needs to tighten up its expenditures as soon as possible. He noted that the recommendation is survey the community and have conversations to evaluate what future service might look like. Ms. Parikh stated that it was vital to know what the community values and determine the vital services.
The Board directed Ms. Parikh to balance the 2012 budget, following the recommendations and outline presented this date, including the use of $178,000 of cash reserves.