December 18, 2006 Minutes of the Regular Meeting

ANN ARBOR DISTRICT LIBRARY BOARD
MINUTES OF THE REGULAR MEETING
MONDAY, DECEMBER 18, 2006

07-103 I. CALL TO ORDER
President Leary called the meeting to order at 6:35 p.m.

07-104 II. VOTE FOR EXECUTIVE SESSION TO DISCUSS LABOR NEGOTIATIONS

Vice President Head, seconded by Trustee Cahill, moved to go into executive session for Labor Negotiations.

A roll call vote was taken:

AYES: Cahill, Greene, Head, Leary
NAYS: None

Motion passed: 4-0.

07-105 III. RECESS TO EXECUTIVE SESSION

The meeting recessed for an executive session at 6:37 p.m.

07-106 IV. RECONVENE REGULAR MEETING

President Leary reconvened the regular meeting at 7:08 p.m.

07-107 V. ATTENDANCE

Present: Cahill, Greene, Head, Leary, Murphy, Barney Newman, Surovell
Staff: Nieman, Parker, Pollock (Recorder)

07-108 VI. APPROVAL OF AGENDA

Trustee Surovell, seconded by Trustee Cahill, moved to approve the agenda.

AYES: Cahill, Greene, Head, Leary, Murphy, Barney Newman, Surovell
NAYS: None

Motion passed 7-0.

07-109 VII. APPROVAL OF MINUTES OF NOVEMBER 20, 2006

Trustee Cahill pointed out a discrepancy between the agenda as amended, and the minutes. On page 5, Item X ‘Vote to Amend Agenda’ we did vote to add an item to the agenda to accept or acknowledge the check register. However, the minutes do not reflect a parallel action, under New Business, in which we accepted or acknowledged the check register.

Trustee Cahill suggested changing the language in Item X to reflect that we voted to acknowledge receipt of the check register. The title of Item X will be changed to ‘Acknowledge Receipt of Check Register.’ Within the recorded motion, strike ‘Amend the Agenda’ and add ‘moved to acknowledge receipt of the check register.’ This eliminates the need for a parallel item under New Business.

Vice President Head, seconded by Trustee Murphy, moved to approve the minutes, modified as suggested by Trustee Cahill, for November 20, 2006.

AYES: Cahill, Greene, Head, Leary, Murphy, Barney Newman, Surovell
NAYS: None

Motion passed 7-0.

07-110 VIII. CITIZENS’ COMMENTS

Aileen Hyne
Friends of the Ann Arbor District Library (FAADL) Volunteer

“Hello. I have worked for a number of years with the Friends of the Library and there are books there that don’t go out on the shelves. I would like to make the board aware of some very happy people that have been the recipients of books that have come out of the Friends of the Library collection. These are sent overseas to troops there and I have been gathering up paperback books that aren’t being put out for sale for one reason or another. The volume of the books that come in also makes this permissible. And, the feedback I have gotten from the Veterans group is how very, very much the troops are appreciating the books that have come to them that have come out of the Friend of the Library bookshop. It is no longer a matter of “hey, just send them here, if it’s going overseas, it goes free,” that is not the situation. There have been enough people who have volunteered to pitch in for the postage that is making this available. The feedback they have gotten from our troops overseas has just been wonderful. They are so happy to have the books, and I wanted to make you people aware of that. Thank you.”

07-111 IX. FINANCIAL REPORT

Associate Director Nieman took the floor and reported the following:

Tax receipts 94% of budgeted amount. $5.7 million positive fund balance.
There are currently 6 items over budget for the month of November.
Deferred revenue is at $7.2 million. We recognize the tax revenue at the budgeted amount. This is the difference between what we have received and what we recognize.

07-112 X. APPROVAL OF DISBURSEMENTS

Trustee Cahill questioned the title of the agenda item. Trustee Cahill made a motion to change the language to “Acknowledge the Receipt of the Check Register.” Treasurer Barney Newman seconded.

Trustee Cahill reviewed the language of the resolution passed by the Board at the October 16th meeting relevant to this agenda item. Trustee Cahill explained his reasons to acknowledge or accept the receipt of the check register and his refusal to approve disbursements in the check register.

After discussion, Trustee Cahill moved to postpone action on his original motion to allow time to consult further with the library’s attorneys and auditor. Treasurer Barney Newman seconded.

AYES: Cahill
NAYS: Greene, Head, Leary, Murphy, Barney Newman, Surovell

Motion failed.

Trustee Surovell asked that Associate Director Nieman add clarification to the discussion. Associate Director Nieman reiterated that the attorneys and auditors worked together on the resolution that was passed two months ago. The Board approves the budget at the beginning of the year. Under this new process, the budget becomes a line item budget. The check register needs to be included in the packet and approved to comply with the State regulations, and to satisfy the attorneys and the auditor.

President Leary clarified with Associate Director Nieman that if we were to go back to the attorneys and the auditor and pose the question, we will be told what we were told originally.

Trustee Surovell motioned to approve the disbursements in the check register. Vice President Head seconded.

Trustee Surovell emphasized that staff are hired and empowered to examine the register and if there are irregularities or errors, the Board will address that with the person or persons responsible. The Board is not to examine the work of staff as though Board members are the attorneys or the auditors.

AYES: Greene, Head, Leary, Barney Newman, Surovell
NAYS: None
ABSTAIN: Cahill, Murphy

Motion passed 5-0-2.

07-113 XI. DIRECTOR’S REPORT
Director Parker reported that the report stands as written and submitted.

07-114 XII. COMMITTEE REPORTS

The Finance Committee met on December 5, 2006. Treasurer Barney Newman reported the following:

The committee, Director, and Associate Directors met with representatives from both the Bank of Ann Arbor and United Bank & Trust Washtenaw to review the library’s investment portfolios. The Request for Proposals for an auditor was also reviewed and the RFP will be issued promptly.

07-115 XIII. OLD BUSINESS

06-125 A. UPDATE ON NORTHEAST BRANCH

Associate Director Nieman took the floor and reported the following:

Ground was officially broken on December 18, 2006 at 4:00 p.m. Machinery has been on site for several weeks and we are on schedule to open the branch in late spring or early summer 2008.

07-024 B. UPDATE ON STATUS OF FRIENDS OF THE ANN ARBOR DISTRICT LIBRARY
Director Parker reported the following:

A copy of the interim letter of intent was included in this board packet, as well as an agreement and letter from the FAADL auditor and their financial compilation. Director Parker pointed out that the agreement letter states that the auditing firm acknowledges a conflict because the FAADL treasurer is with the firm. However, the audit will be conducted by an independent auditor.

Director Parker has begun discussions with the FAADL President Eric Owen concerning a Use Agreement. She intends to ask the FAADL to agree to donate 80% of their gross revenue to AADL in lieu of rent. The current space occupied by the FAADL Downtown exceeds 6,000 square feet. The donation of 80% of gross reflects the FAADL mission of supporting AADL regardless of how revenue is generated. The operating costs of FAADL are limited in scope, but entirely within the control of the FAADL Board.

We will continue to work through this with the FAADL Board with an intended deadline of February 28, 2007 which is when they expect to have their audit completed.

07-116 XIV. NEW BUSINESS

07-117 A. RESOLUTION TO SUPPORT GRANT PROPOSAL FOR THE “SIGNAL OF LIBERTY” PROJECT

Treasurer Barney Newman, seconded by Trustee Murphy, moved to authorize the Library Director to commit the Ann Arbor District Library as the Fiscal Agent for the LSTA grant for the “Signal of Liberty” project.

AYES: Cahill, Greene, Head, Leary, Murphy, Barney Newman, Surovell
NAYS: None

Motion passed 7-0.

07-118 B. RESOLUTION TO AUTHORIZE LIBRARY DIRECTOR TO ISSUE AN RFP FOR A SPACE NEEDS/FACILITY STUDY FOR DOWNTOWN LIBRARY

Vice President Head, seconded by Trustee Cahill, moved to authorize the Library Director to issue an RFP for a Space Needs/Facility Study for the Downtown Library.

AYES: Cahill, Greene, Head, Leary, Murphy, Barney Newman, Surovell
NAYS: None

Motion passed 7-0.

07-119 C. VOTE FOR EXECUTIVE SESSION AT THE NEXT REGULAR BOARD MEETING FOR OPINION OF COUNSEL AND LABOR NEGOTIATIONS

Trustee Cahill, seconded by Vice President Head, moved to vote for an executive session at the next regularly scheduled Board meeting for Opinion of Counsel and Labor Negotiations

A roll call vote was taken:

AYES: Cahill, Greene, Head, Leary, Murphy, Barney Newman, Surovell
NAYS: None

Motion passed 7-0.

07-120 XV. ADJOURNMENT

The meeting adjourned at 8:05 p.m.