New Buffalo Township Public Library Board Minutes November 12, 2013
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1 New Buffalo Township Public Library Board Minutes November 12, Call to Order-Roll Call Meeting was called to order at 4:00 pm by President Daniel Donnelly. Members present: Daniel Donnelly, Sandy Sporleder, Nancy Mrozek, Cyndie Spriggs, Mary McPherson, Kate Vyskocil, and Albin Sikora Absent: Leah Aaron 2. Approval of the Agenda Motion made by Sandy Sporleder and seconded by Cyndie Spriggs to approve the agenda. All ayes, motion carried. 3. October regular minutes read and approved. Motion made by Sandra Sporleder and seconded by Mary McPherson to approve the October minutes with one spelling correction. All ayes, motion carried. 5. October Treasurer's Report Albin asked the Board to look at the year to date budget vs. actual report and pointed out that there have been no outstanding changes, or discrepancies to report and we are under budget in expenses. Dan questioned the accrued real estate taxes through October. Julie explained that these were the last taxes paid on the house. Motion made by Cyndie Spriggs to approve the August treasurer s report, seconded by Kate Vyskocil. All ayes, motion carried. The proposed budget for 2014 was read. Albin said he compared 2013 with the proposed budget and looked at the profit vs. loss year to date. He feels that Julie takes a conservative approach and the budget looks fine for The one change Julie made was noting the one third Chikaming penal fines, instead of one half. This is due to the possibility that Bridgman Library is requesting a third of the fines shared by Three Oaks and New Buffalo libraries. We are budgeting at the lower amount in case Chikaming Twp. approves Bridgman s request. Some line items were budgeted low, such as furniture and equipment because these items will be new next year. Julie explained more was put into professional services to cover unknown costs like the elevator maintenance agreement. 6. Privilege of the Audience
2 Janet Hayes gave an update for the Friends Brick Sale. She said the response has been very favorable and while she did not have the exact number sold, they are receiving orders daily. The website is up and running, flyers were handed out at school and community events and a mailer will go out as well. The Board thanked Janet for her help and then Ryan Fellows, assistant City Manager, said he will add the brick sale info on the City s website and will put it in the newsletter as well. 7. Business: Construction update from Mike Kounelis, Scott Snemis and Courtney James: Courtney gave the board the November progress reports that included the budget, timeline and photos of the project. Courtney updated the board on what has been accomplished since last month particularly that the steel beams are in place as well as the main level floor deck. Mechanical, electrical and plumbing are in the lower level and the stone veneer has started on the east side. The board members commented that everyone is impressed with the progress and look of the building. Structural steel will be coming in this month to complete the first floor and slab on grade area, the masonry and stone veneer installation will also be completed. Courtney explained the budget and how change orders work. Since putting in the donation funds we increased our budget. We are 31 % complete on construction and we have used only $20,000 in contingency. Courtney emphasized that this is great news. Mary questioned the increase for book security. Julie explained that when the project began we did not have RFID budgeted, but after getting quotes from 3M and working with the architects and Alyce, she was able to present that option to the board, and they approved it. This was an option that was better done upfront instead of waiting until later. Mike Kounelis stated that this budget represents a total snapshot of the entire project, not just bricks and mortar costs. Courtney also told the board that Julie sends a general ledger report each month so correct totals are represented in the budget. Albin said this is a great help for not only the board, but a tool for explaining the costs to the public. He also reminded Skillman that the board would like to see New Buffalo Township Library listed as the name on all correspondence, as this is the legal name. Sandy asked if conceivably we might come in under budget. Mike said at this point, absolutely. Julie asked what the board would like engraved on the cornerstone. After some discussion, it was suggested that just the initials NBTL 2014 be engraved on the cornerstone. Ryan Fellows, Assistant City Manager gave a presentation on the proposed DDA (Downtown Development Authority). He explained the DDA is a tool the State of Michigan is using to help fund areas that need rebuilding. All cities in Berrien County have established DDAs except the City of New Buffalo. Several Villages also have DDA s, such as Three Oaks and Baroda. The establishment of a DDA would effect Berrien County, Lake Michigan College, the City of New Buffalo and the New Buffalo Twp. Library as they would in effect freeze our income from operating taxes at this point going forward. Any increase in taxes collected from a specific area (downtown area) would go to the DDA to develop and rebuild the downtown area. Ryan explained that by enhancing and rebuilding the downtown area for everyone to enjoy, the community as a whole benefits, develops, and makes more money which in turn benefits the four
3 entities involved. The first step is a public hearing on November 19 th where the City Council will listen to comments from the four entities and the public regarding establishing a DDA. If all are in agreement, the Council would create an ordinance to establish the DDA. This has been published in the local paper and is posted around town in 20 conspicuous areas, so the public has notification. Twenty days after the approval of the ordinance the DDA would take effect. Ryan explained the DDA has been considered for many years, but was never agreed upon by the previous councils. Robert Kemper, the chairman of the New Buffalo Business Improvement District, and hotel/restaurant owner, spoke about the need to improve the downtown area, and how for many years a DDA has been talked about and needed. Robert explained that through surveys and discussions it is known that the residents, City Council and City Manager want the same thing, to have a vibrant downtown area that residents and visitors can enjoy. They have a plan to keep it quaint, special and unique, and not be a copy of Tinley Park, for example. They just need a funding source and that comes back to the DDA. A DDA also makes it possible to receive grants. For example, if the State of Michigan bestows a grant, they want to make sure that the municipality itself can support and sustain that area. So having a DDA makes it much more likely that grants would be awarded. Mr. Kemper stated that Bridgman has a DDA and was able to enhance their downtown area recently, as did Three Oaks. Kemper said the business owners know that our visitor counts are far in access of the other communities that have benefited from DDA s and feel this is needed for our community to remain attractive to residents and visitors. At this time so much needs to be done, such as sidewalk repair, and underground systems. The City plans to participate financially as well, so it will be a partnership. He also said the DDA will have a 9 member board appointed by the City Council. Ryan said that this week s newspaper would have an ad for those interested in applying for a board position. The City Mayor must serve on the DDA board. Andrea asked if a director would be hired and Ryan said because the first few tax captures would be so minimal they would not hire a full time director at this time, and the City Manager or Assistant City Manage might take on the task of the day to day DDA operations. Kemper stated that cities such as St. Joe have a full time director, but it takes time to build up the funds. He also stated that if we have a DDA the stalled construction project downtown might get financing easier and the DDAs are great economic tools for the City Manager to get projects started again. He said it s a 4 million dollar project for the below ground and above ground needs, and the DDA would help get grant money. Albin summarized that all four entities give up their future tax increases, and asked how these entities will make these funds up. Specifically, how will the City make up the funds? Robert Kemper said they are not giving up anything because it is still in their city. Lake Michigan College and Berrien County hope that the values will increase generally from the funds spent in the downtown area and that will benefit all partners. The hope is the property values will go up and create a better tax base for everyone. If values go up but the tax income for the library is capped, how does the library or LMC benefit? Dan explained from the spill over more residents will come in and the library will get these increases. Any tax increase from the specific downtown area would be captured by the DDA. The library can benefit too if they need
4 sidewalk or other repairs because they can tap into the DDA just like any other business. Kemper said the library would gain way more than it stands to lose if a DDA is implemented. Albin said it s a tragedy that everyone else in Berrien County has a DDA and we do not. And it is why our downtown is in the sad shape and looks like a strip mall compared to Three Oaks and other cities that have taken advantage of forming a DDA. He feels LMC should say yes to our DDA since they ve approved everyone else s, and the same with the County. Albin stated that the other libraries in other communities have signed off on the DDA s and have benefited from them. Julie asked if the City Council needed the library s approval, and Robert said no, either no action or a letter of support. If the library board was against the DDA they could voice that at the public hearing meeting but Kemper hoped the board would support it. Dan pointed out that next year, if the DDA passes and there was a 3% growth as predicted, the library would lose $ At this time we are not talking about substantial money as far as the library is concerned. Kate asked who determines how the money from the DDA is spent. Would they have to adhere to the master plan? The DDA has the authority to spend the funds as they want. Also small business might qualify for low or no interest loans or be able to apply for grants. Kemper pointed out that it will take a long time before a significant amount of money would be in the DDA fund. Albin thought this would be a great time to bring in a Township member, and Ryan agreed. Albin felt the board should be positive toward the DDA and Kate asked if the board should send a letter of support. Robert thought that would be wonderful to have support from the library and Albin thanked Robert and Ryan for a great presentation. Sandy asked about the Main street program. Robert explained this would work in tandem with the DDA. Robert said the City s building will be paid off soon and they are willing to bond for the downtown project, so everything is coming together. Dan asked for a motion to send a letter of support for the DDA. Albin made a motion to approve a resolution of support of the DDA and to send a letter of support to the City Council. Nancy Mrozek seconded, all ayes, motion carried. Alyce presented the budget, schedule and procurement for all interiors and furnishings that were approved at the last meeting. Three elements that have not yet been documented: signage that was in bid package might be coming over to interiors, some recessed lighting over the children s desk and donor signage. Alyce has been talking to Courtney about the scheduling, who had stated June occupancy, will be doable. Alyce commented on how impressed she is with Skillman. She did want to mention that a June occupancy date does not mean open to the public. A month of getting the building ready is advised. A grand opening in August might be more accurate. Alyce will bring in the fine tables and chairs at the very end, shelving and millwork will be first. If Alyce procures the pieces everything comes in direct and is installed, noting is warehoused. Alyce s procurement is direct purchase price with deep discounts, if we were to bid out the furniture using Skillman or on our own we would not get the discounts that Alyce can. Alyce explained how the millwork is installed, and how long the different pieces will take. The shelving should take about a week to install. Installation for everything might be around 3 weeks. Sandy asked about the tall chairs and Alyce said the wave chairs in the conference room come in the tall chairs as well. So we will use those.
5 Alyce and Julie spent a day going over each piece and then Alyce priced each piece. Skillman s original budget for interiors was $454,000, but after the board hired Alyce they dropped the budget to $392,000. After adding all the enhancements such as the features in the Children s area and special pieces in the adult area the total interiors budget went to $590, If you add $270,000 of donations for enhancements our budget is now $662,000 which leaves over $70,000 in funds, not including donations not yet recorded. Sandy stated she did not want to spend all the enhancement money and Julie asked what the board would like to pull out of the design. Albin said with more donations expected we have over $100,000 surplus in donations that people gave specifically for the purpose of enhancing the building. Julie also pointed out that we have over $600,000 in capital funds. While we want to keep money for repairs and future needs, people have been giving toward this new building for many years, so the board should be able to use these funds if needed. Mary stated that the money should be used for enhancements, and Kate asked what the point is of asking for donations if we don t use the money. Sandy asked about landscaping and Julie said it will be very minimal. It isn t even in the budget and we will most likely hire a local firm to landscape the small area we have. Dan said this is our one chance to do it right and he doesn t want to come in a year later and have to add to the project when we have the means to do it now. Julie said we still have to develop the donor wall, which will be an added expense but really we won t have to look at big ticket items for years to come. Alyce said this donation wall can be designed as simply or as elaborate as the board wants. Alyce stated that because of the donations and the generosity of the community, she was able to make the additions to the building that will make our selections durable, with less maintenance and beautiful for many, many years. Alyce said she looked at places she could cut costs, such as staff furniture, which is ergonomic, a feature that is really smart for the long run. Alyce went through all the features made possible through the donations. The board agreed that these features make the library more usable for patrons and staff. She also pointed out that the board needed to decide if they wanted her to do the procurement and installation for the extra fee of $5000 that handles freight, installation, purchase orders, etc. Albin asked why this fee was not up front and Alyce explained this fee was to be decided by the board. Julie asked the board to make a decision about the fee for furnishings procurement and if the board wanted to move forward with the budget. Cyndie Spriggs made a motion to approve Alyce to do the procurement package and the fee. Dan Donnelly seconded, all Ayes, motion carried. Albin made a motion to approve the budget of $590, Nancy Mrozek seconded, all ayes, motion carries. Alyce said by the next meeting she will have purchase orders, most will require deposits. Alyce then discussed the info she would need by the board to begin working on the donor wall. Director evaluation: Albin asked Julie to leave so they can discuss her evaluation. When Julie returned the Board said they approved the evaluation. Mary McPherson made the motion to accept the Director evaluation and Dan seconded it. Staff bonuses: Julie presented the spread sheet of last year s bonuses and said it was up to the board to decide on the 2013 bonuses. Sandy asked if they were increased from last year, Julie said they were, especially hers. Mary asked about salary increases. Julie
6 said it is normally a %3 increase. The wages are discussed in December. Albin asked how the staff reacted about the increases, and Julie said they were very excited. Andrea said there should be a formula. Julie thought Andrea and Albin could help create benchmarks for wages and bonuses. Julie also explained there are minimal longevity bonuses that are added after so many years of employment. Albin would like to increase Julie s bonus this year because of extra work on the construction project for this year only. Sandy disagreed on the amount and wondered if other staff member s bonuses increased. Albin said no, just Julie. Sandy felt $2,500 was fair. Albin made a motion to increase Julie s bonus to $3000, Mary McPherson seconded. 7 ayes, one no. Motion carried. Mel Cat Visiting Patron program. This is a component to Mel Cat for those whose libraries participate in the visiting patron program, can borrow materials. Cindy made a motion to accept using Visiting Patron, Andrea seconded. All ayes, motion carries. Julie informed the board that she and the Three Oaks director will meet with the Chikaming Twp. Supervisor on Thursday to discuss Bridgman s request to take a third of the penal fines currently given to New Buffalo and Three Oaks. Julie will keep the board informed. 8. Comments from the Board: 9. Adjournment: Motion made by Albin Sikora to adjourn the meeting, seconded by Cyndie Spriggs to adjourn the meeting at 6:20 p.m. Respectfully submitted, Nancy Mrozek, Secretary
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