REGULAR MONTHLY MEETING
BOARD OF TRUSTEES
ST. CHARLES PUBLIC LIBRARY DISTRICT
OCTOBER 14, 2015
The Regular Meeting of the Board of Trustees of the St. Charles Public Library District was held on Wednesday, October 14, 2015 at 7:00 pm at the Library. Present: President Tory Haines, Vice-President/ Secretary Kimberly Reese, Trustees Anne Francissen, Mike Hill, Karen DeVault and Cynthia Steimle; Director Pamela Leffler, Administrative Assistant Virginia Tsipas. Absent: Treasurer Norm Huntley. Library staff present: Heidi Krueger, Bonni Ellis, Pam Salomone, Nick Petta, Myung Gi Sung, Denise Farrugia, Penny Walsh, Michele Collette. Guests: Brian LeFevre of Sikich, Dan Pohrte and Tiffany Nash of Architecture + Design and Steve Hendrickson of ShalesMcNutt Construction.
WELCOME OF GUESTS
Mrs. Haines read the Library’s Mission Statement, called the meeting to order at 7:00 pm and welcomed guests.
MINUTES: Audit Committee Meeting, September 9, 2015
MINUTES: Annual Meeting, September 9, 2015
MINUTES: Executive Session Meeting, September 9, 2015
Treasurer’s Report: September 2015
Internal Budget Report: September 2015
Year-To-Date Statement: September 2015
Fund Balance: September 2015
Investment Reports: September 2015
The First State Bank and Harris Bank
Motion by Mrs. Reese, second by Mrs. DeVault, to approve the Minutes of the Audit Committee Meeting, September 9, 2015; Minutes of the Annual Meeting, September 9, 2015; Minutes of the Executive Session Meeting, September 9, 2015; Treasurer’s Report: September 2015; Internal Budget Report: September 2015; Year-To-Date Statement: September 2015; Fund Balance: September 2015; Investment Reports for The First State Bank, Harris Bank and IIIT: September 2015. Carried unanimously.
BILLS: September 2015
Motion by Mrs. Reese, second by Mr. Hill, to approve the bills for September 2015 in the amount of $309,107.04. AYES: Huntley, Francissen, Hill, Haines, Reese. NAYS: None. ABSENT: DeVault, Steimle. ABSTAIN: None.
Motion by Mrs. DeVault, second by Mrs. Reese, to take Agenda out of order and move Agenda Item 23 before the Board. Carried unanimously.
23. PRESENTATION OF AUDIT
Brian LeFevre of Sikich discussed the audit of the Library and reported that the Library received an unqualified opinion, which is the highest level. Mr. LeFevre stated the audit was based on two sets of standards; AICPA auditing standards and GASB financial reporting standards. An important note was that all deposits were fully collateralized. Any deposits above $250,000 are insured and covered by collateral. Library is in compliance with investment policy.
Mr. LeFevre reminded Trustees of GASB 68 which is a new standard for reporting of IMRF pension liability on the financial statements. This is an accounting change, not a funding change. The Library did pay off their final mortgage. The total pension liability this year includes both active members and retirees; before, only active members were included. KPMG did an audit of IMRF and found them to be 82.8% funded.
Dr. Steimle arrived at 7:22 pm.
Auditor’s Communication to the Board of Trustees notes there are no disagreements with management; process is going smoothly. No issues were identified. There were a couple recommended adjustments in accounts payable and transfer with Special Reserve Fund, a couple of old cash accounts and cleaning up items. The Auditors discussed recommendations with Mrs. Leffler and Mrs. Kmet, including securing blank check stock, which were addressed.
GASB looks at related entities, i.e., Foundation and Friends and puts onus on Board, to evaluate their financial statements. There is a 5% test if an item is of significance. Mr. LeFevre stated they use a professional judgment with regard to these matters. Mrs. Leffler stated that the Foundation held approximately $300,000 in funds. Mr. LeFevre stated that an audit would be warranted at the $850,000 level.
Note was made to Library’s vacation policy which will be revised because of complexity of accrued vacation time for new staff.
Mrs. Francissen asked if there was an audit of internal controls. Mr. LeFevre said they gain an understanding of internal controls, review procedures of processing cash receipts and accounts payable and conduct a test of transactions to see if the procedures and process are aligned. We did not identify any risks.
Mrs. Haines asked if they were pleased with new payroll system. Mr. LeFevre said yes. The comments from staff concerning payroll acts as a second control. Management can review reports from Paycom. Mrs. Haines asked if work was done on controls in payroll. Mr. LeFevre said yes; we do a lot of work in the payroll area.
Mrs. Haines said the financial statement for the Foundation as of August 31, 2015 shows holdings of $249,000. Mrs. Haines prepares the I-90 for the Friends of the Library.
Motion by Mrs. Reese, second by Mrs. Francissen to approve the Audit. Trustees were directed to contact Mr. LeFevre if they had further questions. Mrs. Haines thanked Mr. LeFevre. Mr. LeFevre left the meeting at 7:24 pm.
DIRECTOR’S REPORT: September 2015
Mrs. Leffler did not have anything to add to the Director’s Report. Mrs. DeVault asked about payments to OSG dated 9/21/15 in the amount of $2,025.00 and dated 9/30/15 in the amount of $13,500.00. Mrs. Leffler said those payments are accurate and she is meeting with Dan Klobnak of OSG and David Macdonald, IT Interim Manager, weekly to discuss status of work to upgrade hardware and software and to work through issues stated in the IT Audit. Mrs. DeVault asked how much longer the Library would need the services of OSG. Mrs. Leffler said we could use their assistance for another 100 hours, depending upon how we choose to move forward with IT Manager position. Motion by Mrs. DeVault, second by Mrs. Reese, to approve the Director’s Report. Carried unanimously.
Intergovernmental Group (Michael Hill)
Mr. Hill suggested the Library consider conducting an annual survey of community. He mentioned the School District conducts one on an annual basis. Mrs. Leffler has talked with other library directors, the City of St. Charles and Park District to consider survey options. We can conduct a casual survey or statistical survey, but need to be sure the survey is relevant.
Foundation (Tory Haines)
There are two new members on the Foundation Board, Claudia Frost and William P. (Mike) Weible. Foundation reviewed their annual financials and Mrs. Haines worked with Treasurer, Mr. Gephart to improve financial reporting. Carol Abel submitted her resignation from the Foundation Board. Donor Event scheduled for October 17, 2015 was canceled due to Fox Valley Repertory abruptly closing their doors. Foundation has requested refund of $1,000.00 from FVR for the purchase of the tickets. Books and Brunch Event is scheduled for April 23, 2016. Friends’ book sale will be held October 30, 2015 through November 1, 2015. Friday, November 13, 2015 there will be a fundraiser at the eastside Panera to benefit the Friends of the Library. The Foundation may hold similar fundraisers at local restaurants in February and March 2016.
Motion by Mrs. Reese, second by Dr. Steimle, to accept the Committee Reports. Carried unanimously.
Communications and Citizen’s Comments: Following Robert’s Rules of Order, there is a 10 minute time limit per issue on testimony with a limit of two (2) issues per meeting.
24. PRESENTATION OF ANNUAL REPORTS
Trustees enjoyed reading the Annual Reports and praised the staff. Mrs. Leffler said that Mr. Huntley, who could not be present at the meeting, wanted the staff to know he felt they were doing very well. Mr. Hill requested summary of Annual Report to distribute at upcoming Intergovernmental meetings. Mrs. Leffler will prepare the Annual Report Summary.
25. BUSINESS OFFICE ASSISTANT POSITION
Mrs. Leffler reported the revised proposed job description addresses the internal control issues raised at the September meeting and recommended that the new job description be adopted by the Board. Motion by Mr. Hill, second by Mrs. DeVault, to adopt the full-time job description for Business Office Assistant. Carried unanimously.
26. TRUSTEE MANUAL REVISION RE: P-TELL AGGREGATE EXTENSION BASE
Mrs. Leffler provided a revised page 10 of the Trustee’s Manual to clarify the levy aggregate extension rate. Mrs. Francissen had questions about the sentence “Because tax income each year is based upon the preceding year, the Library Board must be cautious to levy as close to its legal rate as possible so it will not permanently reduce the amount of taxes it should receive.” Mrs. Haines stated the discussion would be tabled and brought before the Finance Committee with the requested attendance of Attorney Ritzman. Mrs. Leffler will schedule the Finance Committee meeting with Mr. Ritzman.
27. DRAFT ORDINANCE 2015/2016-5: ORDINANCE FOR LEVYING TAXES FOR LIBRARY PURPOSES FOR THE FISCAL YEAR 2015/2016
Mrs. Leffler said the Ordinance will be on the October 2015 Agenda and is the same amount as approved in the budget.
28. PRODUCT ARCHITECTURE + DESIGN AND SHALES MCNUTT CONSTRUCTION PRESENTATION(S)
Dan Pohrte and Tiffany Nash presented the Board with three proposed schemes for the remodel of the Library. The plans came in a little over budget. Highlights of schematics:
• Additional 10,000 square feet – cost $10,900,000
• Use existing southeast staff parking lot
• YS – remove Story Room
• YS – remove large workroom for additional patron seating
• YS staff will use existing Graphics workroom
• Existing Huntley Meeting Room will become Story Room and craft room
• Atrium will be added for natural lighting from main level to lower level with indoor usable space
• Existing main floor lobby will become café area
• Create new entrance, patrons to see Circulation staff upon entry
• New study rooms on main floor
• New training lab and meeting room with two new restrooms
• New meeting room will be closed off for evening events
• Under mezzanine area, teen maker space and new study rooms
• Non-fiction will be housed in new addition
• All collection areas have not been reduced
• Receiving on south side of library to be considered as a second option
• Staff offices on mezzanine level – Administration, Reference, Outreach, Communications & Marketing
• All patron functions on main level
• Outside view along Main Street – more windows in existing building and in new addition
• Lower hedges to see more of library, but will hide receiving dock
• Blend exterior of existing building with addition
• Entrance wide with lots of windows – able to see through building from new entrance into library and out through north side of library
• More decorative fixtures under mezzanine ceiling area
Dr. Steimle asked about safety glass in case of tornadoes. Architects said they do not use a special type of glass.
Budgeted cost of addition is $24 per square foot. There is a design and construction contingency included to allow for issues that may arise or design changes. Throughout construction the construction contingency money will be moved back to the library if not needed. Plan is to keep majority of furniture from most recent renovation.
Scheme 2 – remove atrium from design and addition would be 8,600 square feet.
Scheme 3 – no new meeting room on main floor. Huntley Meeting Room and Helen Gale Story Room remain as is. No atrium.
Several reasons schematic estimates are coming in higher than planned is there is more work to do in Youth Services than initially planned, atrium design was not in original plan, site work is very expensive, topography is dramatic, retention is a problem, and demolishing of houses that may have asbestos and possible asbestos in older part of existing library.
Architects have been meeting with City Building Department to be sure they are compliant. Architects would like to use as much of existing building as possible. City of St. Charles will waive fees on building permits; a savings as another library project has building permit fees of $100,000.
Mrs. Haines mentioned that Scheme 1 is $2.4 million above budget. Architects said $1 million is for site work. Architects are working with civil and landscape engineers with saving as many trees as possible.
Dr. Steimle asked if addition of atrium is costing $1 million. Architects said yes. It will bring natural sunlight into the building and down to Youth Services. With Scheme 1, the new meeting room will be on main level, leaving only children in lower level.
Mrs. Leffler said when set original budget, we did transfer $1 million into Special Reserve Fund. We have available Miller Trust of $630,000 to be used for capital expenditures. We have total available funds of $9,993,017.
Mr. Hill asked how patrons would get to Carnegie Community Room. Architects said by the back elevator. In Scheme 1, new plans show an outside door on west end of building. There could be possible garden seating in front of old Carnegie Building or in new café. Atrium would be glass enclosed on main level and on lower level, children could walk into atrium.
Mr. Hill asked if City was approached about closing off Walnut Avenue to become part of Library property. Mrs. Leffler said she spoke with City and they are thinking about it. However, depending on decision we have not gone further with discussions. The architects will be meeting with Building Department about parking requirements.
Mrs. DeVault asked if collection size remained the same with Schemes 1 and 2. Architects said the footage for Schemes 1 and 2 are the same. Some rows are lengthened from one scheme to another.
Mrs. Haines asked when construction would begin. Architects said in the summer. First the Board needs to vote on the financial matter and then we would obtain the construction estimate. Plan is to have addition up and site work completed prior to cold weather in 2016.
Mrs. Haines said it is irresponsible to go $2.5 million over budget, especially with addition of atrium. We are uncertain about future of property taxes. Mrs. Francissen said she feels we cannot go over budget now. We could possibly look at alternative funding for atrium. Mr. Hill felt the Board could not vote at this time for a certain plan, especially to go that far over budget. Mrs. Reese said she does not want to go over budget for atrium. She does not want to see collection cut. Mrs. Reese felt that Mr. Huntley should be present for vote. Dr. Steimle said if atrium costs $1 million, going with Scheme 2 is doable. Would favor Scheme 2 unless could obtain private funding. Atrium area could be art gallery. Mrs. Haines said we need another month and need to hear what Mr. Huntley thinks. The Foundation may know people who may wish to donate for additional funding needed.
Architects offered to create renderings to use in approaching outside funding donors. Architects want Board to consider whether to place receiving area in the front or back of Library.
29. BUILDING MAINTENANCE AND REPAIR
Nothing to report.
8. CLOSED SESSION FOR DISCUSSION OF THE FOLLOWING SUBJECTS:
a. Acquisition and lease of property [5 ILCS 120/2 (c)(5) and (6)]
b. Litigation [5 ILCS 120/2(c)(11)]
c. Personnel [5 ILCS 120/2(c)(1)]
Closed Session not required.
9. POSSIBLE VOTE ON ITEMS DISCUSSED IN CLOSED SESSION
No vote necessary.
Motion by Dr. Steimle, second by Mrs. Francissen, to adjourn at 8:40 pm. AYES: Francissen, Hill, Haines, DeVault, Reese, Steimle. NAYS: None. ABSENT: Huntley. ABSTAIN: None.
Kimberly Reese, Secretary
Board of Trustees