Board of Trustees
Pierce County Library System
Regular Meeting, May 11, 2011
Call To Order
Chair J.J. McCament called to order the regular meeting of the Pierce County Rural Library District Board of Trustees on May 11, 2011, 3:34 pm. Board members present were Linda Ishem and Budd Wagner. Steve Albers and Allen Rose arrived later.
Public Comment
There was no public comment.
Consent Agenda
1. Minutes of the April 13, 2011 Regular Meeting of the Board of Trustees
2. April 2011 Payroll, Benefits and Vouchers in the total amount of $2,353,773.06
a. Payroll Warrants dated 04/01/11 – 04/30/11 in the amount of $6,343.93
b. Payroll Disbursement Voucher dated 04/21/11 in the amount of $570,112.40
c. Payroll Disbursement Voucher dated 04/21/11 in the amount of $527,937.50
d. Account Payable, dated 04/21/11 in the amount of $3,512.83
e. Accounts Payable Warrants, 614119 - 614423 dated 04/01/11 – 04/30/11 in the amount of $1,245,866.40
3. Resolution 2011-06: Declare Equipment Surplus to Public Service Needs
Mr. Wagner moved for approval of the consent agenda. Ms. Ishem seconded the motion and it was passed.
Board Member Report
Budd Wagner: Mr. Wagner expressed his congratulations to PCLS staff members newly elected to American Library Association positions: Georgia Lomax, Public Library Association Board of Directors, Elise DeGuiseppi, Association for Libraries Services to Children, 2013 Caldecott Committee, and Judy Nelson, Young Adult Library Service Association, 2013 Non-Fiction Award Committee. He also congratulated staff for the successful Pierce County READS program.
J.J. McCament: Ms. McCament also wished to add kudos for the Pierce County READS program, noting it was a great program and very successful. She reported that she was continuing her visits to PCLS branches and was fortunate to visit the Summit branch on a day that the Daffodil Princesses read to children. It was a wonderful event. She also stated that the Summit branch was packed and is a building that greatly needs to be expanded. Ms. Parikh responded that the Bonney Lake branch has the most critical need for expanded space and parking.
Officer Reports
1. Urban Libraries Council Innovation Initiative: Ms. Parikh announced that the Pierce County Library System had been selected to receive an Innovative Award from the Urban Libraries Council for its project “Our Children Are Ready for Reading”. The project was implemented in partnership with the University of Washington to help the library find an effective way to prepare family child care providers for improving the literacy skills of children in their care. It was a research project testing the impact on the children after training child care providers in literacy skills. The Innovation Award will be presented during the American Library Association conference at the Urban Libraries Council breakfast on June 25th. Judy Nelson distributed a copy of the final report cited in the award: “Emergent Readers Literacy Training and Assessment Program Research Report”.
2. United for Military Families: Ms. Parikh distributed a flyer from United Way on their proposal for a three-year program to serve military families. United Way is proposing placing a levy lid lift request before the voters to fund this effort at a cost of 5¢ per $1,000 of assessed value. Clifford Jo, Director of Finance, reported that if successful, it may cause prorationing as the Washington State constitution has very specific maximum levy limits. If a taxing district is at its maximum and there is a new assessment, pro-rationing kicks in and district levies are reduced to keep the total within the maximum ($10 per $1,000). It doesn’t appear that the United Way measure would have an immediate affect on the library, but if property values remain low or drop, there could be a future impact. Judy Nelson noted that although United Way would be the fiduciary agent, the ballot issue would be Pierce County’s responsibility, under leadership of the Pierce County’s Human Services Department.
3. Query from The News Tribune: Mary Getchell reported that a reporter from The News Tribune called regarding the library’s salary increases over the last 5 years. In responding to the question, Ms. Getchell noted the increase was primarily related to the library’s successful levy lid which expanded services. Increased staffing was needed to meet the levy promises and a great many of the staff hired were higher salaried professional librarians. In addition, the library had completed a comprehensive salary study which showed that 45% of job classifications were 5% to 20.4% under market rate.
4. Balanced Scorecard Report, 1st Quarter: The Balanced Scorecard report had been previously sent to the Board. Georgia Lomax briefly reviewed key elements of the report, noting in particular that the library’s online visits were increasing by leaps and bounds. Mr. Wagner asked about the targets for visits per capita and checkouts per capita, specifically that it appeared that the targets continue to be much higher than the accomplishments. He noted that population growth affects the per capita target and suggested that it be measured by target rather than year-to-date calculation. After a brief discussion, Ms. Lomax agreed the formula she had been using wasn’t providing the data needed and should be changed.
Chair McCament stated that the target for staff turnover is set at under 10% and it is much higher than PCLS’s turnover history. Ms. Lomax responded that she questioned whether the data was even needed and had been considering dropping that measurement. Mr. Albers responded that the measurements should be aligned to “what’s important – what’s important for the customer?” Perhaps measurements related to customer/staff engagement or staff education/training might be better measurements. Ms. McCament stated that she has always been interested in staff turnover figures and its underlying message; does a low turnover rate mean satisfied employees, appropriate pay, etc.?
Ms. Parikh thanked the Board for the thoughtful discussion. She also suggested that the issue should be discussed on the administrative level and before metrics are next set, they should be brought to the Board first for their consideration.
Unfinished Business
1. University Place Library:
a. Construction Projects to be Completed: Lorie Erickson, Facilities Director, reported that the list of tenant improvement items to be completed is getting shorter. The 28 days of the flush-out isn’t yet complete as the TAB report isn’t done. The internal elevator is functioning better. Lights on north wall: The City of University Place will pay for a retrofit to the lights on the north wall. ATS should have testing complete by the end of this week. The Access Panels issue is not yet resolved. She expects that by the end of next week the library may have final certificate of occupancy for the University Place library.
Core and Shell: The leaking roof on the external elevator may be completed. Water continues to seep through the sides of the book drop on Dexler Ave. Rain water is pouring off the front entrance way due to poor design and construction. The city has chosen not to do directional signage to the parking garage. She also noted there is some work required for the design of the library signage in the front of the building.
Ms. Parikh reported that the city has hired a security firm to avoid issues in the garage and will be putting cyclone fencing around the garage. The city has changed the location of the police station from underneath the library to the 2nd floor of the civic building. There will not be a holding cell in the police office space.
b. Status of Condominium Declaration and Operating Agreement: Ms. Parikh reported on progress relating to the operating agreement and condominium declaration. An issue arose related to putting a ‘welcome desk’ in the atrium. The city did not consult with the library, even though we are co-owners. The concept relates to the kind of ‘public forum’ in the atrium. The city has a policy related to limited public forum, and includes city formal partnerships or entities that are located in the city. For the atrium welcome desk, the philosophy was that it was a limited public forum and only the people that satisfied the limited public forum policy could distribute information. The draft operating agreement states clearly that it is not a public forum and the space is only for use by the city and the library. City staff met to discuss the information desk. The representatives of the volunteer center expressed doubt that there would be enough volunteers to staff the desk. As of this afternoon, the city has agreed that only city information would be distributed from the desk.
The library has concerns about the size and location of the desk. The library’s attorney suggested that the operating agreement could define the atrium as a limited public forum, but that the library and city would together set the guidelines for use. Mr. Rose suggested that the library defer to the attorney’s guidance in this matter. Mr. Albers noted that it’s a great space, built with taxpayer dollars and it shouldn’t go to waste. It needs to be used, but with clear guidelines for usage.
c. University Place Campaign: Report: Lynne Hoffman, Development Director, reported on the wrap-up meeting of the University Place Capital Campaign Committee. Ms. Hoffman noted that committee members were pleased to be a part of the campaign and she felt it developed some great library supporters. It’s important to continue talking to donors, prospective donors and community members met during the campaign. The foundation will do a wrap-up mailing by mid-year. She also announced that the Ben B. Cheney Foundation gave a $25,000 donation.
2. 2010 Year-End Financial Review: Mr. Jo presented the 2010 year-end financial review and statements.
Revenue: New revenues came in at .92% more than the original budget. Delinquent property taxes collected are less than anticipated ($162,000 less). Approximately $32,500 was offset by current property tax payments.
Expenditures: Compared to the original 2010 budget, expenditures were $1.46 million under budget. Personnel savings were nearly $1.39 million, due to unfilled positions, lower medical coverage costs and fewer claims paid for unemployment benefits. Collection expenditures were slightly over budget by $76,316, which translated to 16.23% of the total budget (slightly higher than the 16% goal). Maintenance and operations were over budget by $215,499 (7.03%). The increase was primarily due to moving materials processing services back into the maintenance and operations budget line item and purchase of computer equipment and furnishings for the Job and Business Centers project which was offset by receipt of grant funds.
Capital Improvement Fund: New revenues came in at $391,000, generated through investment interest and donations from the University Place Capital Campaign. Transfers to the fund included the standard transfer of 2% of revenue and $1.5 million from 2009 operational savings for a total of $3,375,599. Expenditures amount to $3,623,100.
Cash Reserves: The Library has adequate cash reserves to sustain operations in 2011. In late 2010, the Library revised its strategy to address current fiscal realities and eliminated the standard 1% set aside and now uses a 2% minimum standard for undesignated cash reserve. Cash designated for operations is set at 31%, which pays for the first four months of a fiscal year before receipt of property taxes at the end of April.
In line with the strategy, transfers to the Capital Improvement Project fund have been increased from 2% to 3%. Mr. Jo recommended the budgeted transfer of funds from the General Fund in the amount of $3,000,000, and per the Fiscal Management Policy, unanticipated revenue and expenditure savings in the amount of $1,643,860 to the Capital Improvement fund.
3. Resolution 2011-07: To Transfer in a Portion of the Fund Balance of the General Fund to the Capital Improvements Fund: Mr. Rose moved for approval of Resolution 2011-07, to transfer a portion of the fund balance of the general fund to the capital improvements fund in the amount of $4,643,860. Mr. Wagner seconded the motion and it passed.
4. Fife Project:
a. Fife Update: Lorie Erickson reported that the design work on the modular building is moving forward. The project is on line to meet the scheduled opening date, although it is the library’s desire to open prior to that date. Site work bids were opened and it was Ms. Erickson’s recommendation that the contract be awarded to Beisley, Inc., the responsive low bidder.
Cliff noted that an exhaustive analysis of the Fife Library project and budget was undertaken with the architects. $4.2 million dollars is budgeted for the library, which includes land, building, furnishings, site work costs, fees, and contingencies. The original budgeted amount was $2,579,140. The increase is primarily due to:
· Land costs which was budgeted for purchase in 2010, but did not occur until March 2011.
· Higher cost for the modular building
· City of Fife requirements for street improvements, some of which may be deferred
· Project contingency
· Detention pond
· Legal fees
· Increased costs for design/architectural fees
Funds are available in the capital improvement fund for the project, although it will draw down a significant amount of the fund. The capital improvement fund will be in the positive for at least another year. Mr. Albers expressed concern that the project is hurting the cash position because the library has to draw more money from the general operating budget for the capital improvement fund. He noted that the library has limited resources and money spent today means less funds available in the future. It is worrisome when on one hand the library is looking at future financial difficulties and on the other hand is expending a large amount. Ms. Parikh noted that the fact that the land had to be purchased instead of leasing space indeed raised the Fife budget significantly. Mr. Albers stated that he recognized the library’s obligation to build the branch, but he is concerned about protecting the library’s long-term fiscal health.
b. Resolution 2011-08: To Revise the Capital Improvement Fund Budget of Estimated Expenditures for 2011. Mr. Wagner moved for adoption of Resolution 2011-08 to revise the capital improvement fund balance of estimated expenditures for 2011. Mr. Rose seconded the motion and it was passed.