Allegan District Library
Board of Trustees Meeting
May 17, 2016
Call to Order President Kiella called this regular monthly board meeting to order at 7:02 PM.
Trustees Present: Mike Kiella
Also present: Director Lindsey Dorfman
Assistant Director Sharon Crotser-Toy
Administrative Assistant Evelyn Lyzenga
Not present: Jason Watts
Marjori Cantwell did indicate she would be a late arrival
All present recited the pledge of allegiance.
Corrections/additions to the agenda, excusing of absences
Motion: Trustee Browne moved to excuse Trustees Chris Antkoviak and Jason Watts; Trustee Behm support, passed.
Quorum is present.
Trustee Browne requested to add the personnel committee minutes to the consent agenda; so amended.
Motion: Trustee McLeod moved to accept the consent agenda with addition; Trustee Browne support, passed.
Trustee Behm shared a conversation he had with Tony and Carol Garfalo.
Action on Committee Reports
1. B&F Committee-Recommendation to approve FY 2015/16 proposed amended budget – Action Required
Director Dorfman sought any questions on the proposed amended budget for this year of 2015-2016.
Trustee Cantwell arrived at 7:09 PM.
Motion: Trustee Cantwell moved to accept the 2015-2016 proposed amended budget as given, Trustee McLeod support, passed.
2. B&F Committee FY 2016-2017 Proposed Budget 1st Read – Discussion
Discussion: Director Dorfman reviewed the new budget and asked for any questions.
• She mentioned to the Board that the library’s taxable income dropped by $16,000 due to the personal property tax being repealed. This affects our property taxes now and the millage vote on August 2. Director Dorfman confirmed this drop with the Equalization office.
• At this point Director Dorfman moved over to Expenses. She indicated the various salary items used to arrive at the total salary expense for this budget. Trustee Browne indicated the personnel committee will look in depth over the year at salary expenses.
• President Kiella asked the question about how the library charges off any bad debt; he requested the Director to ask our accountant and our attorney for their input. An operating policy will be the desired outcome.
President Kiella requested the notice for the budget hearing be published 7 days ahead of the date and before the June meeting along with the 30 day notice for the annual meeting in July.
3. B&F Committee FY 2015-2016 and FY 2016-2017 Proposed Capital Building Fund Budget – 1st Read – Discussion
• Director Dorfman stated the Board has to pass a budget for the capital building fund for this year 2015-2016 and a 2016-2017 budget for this fund by June 30th, per advice of our auditor and our accountant.
• This fund accounts for all of the expenses associated with the library improvement plan that can depreciate and can be reimbursed with bond proceeds; such expenses as getting land ready, land purchases, real estate attorney fees, etc.
• The initial transfer into this fund is from the general fund along with all the qualifying invoices paid thus far this year. The balance remaining is what is to be spent next year, 2016-2017.
• Director Dorfman stated this fund has been reviewed by the library’s auditor and accountant and it is a separate budget from the general fund budget.
• She also stated it requires a separate bank account and checks must be signed by two signers.
President Kiella requested to let the record show that this is the 1st reading of the 2015-2016 and the 2016-2017 capital building fund budgets. Director Dorfman stated this budget must be part of the budget hearing as well for next month. President Kiella drew attention to the fact there will be 3 first readings of budgets from this month which will be on the agenda for the June meeting.
Action bills to be paid
Motion: Trustee Browne moved to approve the May bills in the amount of $31,698.97
and May payroll in the amount of $21,493.73 for a total of $53,192.70, Trustee Behm
Director Dorfman mentioned the insurance renewal provides coverage on the 2
additional properties the library now owns and increased the coverage limit from 1
million to 2 million as required in the lease with the city.
Communications – none
1. 327 Exchange agreement draft & update
Director Dorfman stated that we are waiting for the legal description which is being worked on by Abonmarche. Once the library has that, the agreement will be ready to take to the owners of 327 Hubbard. President Kiella informed the rest of the board that Jim Mumby and Scott Hogen are on board with this. He appointed Sharon Crotser-Toy to be the property point person for any response the owners may have.
Motion: Trustee Browne moved to approve the exchange agreement with the appropriate description to be added, Trustee Behm support, passed.
2. USDA Rural Facility Loan Update
Director Dorfman could not finish this before her final day at the library. She reached out to Tony McGhee of Abonmarche to complete this loan application and he responded with a quote. He will get it done before the millage. Trustee Browne recommended that we hire Abonmarche, who have the necessary experience..
Motion: Trustee Behm moved to contract with Abonmarche in the amount of $2150.00 for completion of the USDA Rural Facility Loan application, Trustee Browne support, passed.
Director Dorfman will contact Tony and ask him for a timeline, any publication dates and what he needs and when.
3. and 4. Property Update
Director Dorfman shared the library now owns 315 Hubbard Street and it has been secured. She stated the building will have to be demolished even if the millage does not pass. There was discussion of the next steps. The Board discussed the demolition sequencing work as Jim Mumby suggested, to be pursued by the Facility Committee with the Director. President Kiella needs to have the Facility Committee meeting moved to the second week of June.
The library needs to send a second 1099 form to Mr. Sturgis with proof of receipt for the 319 Hubbard Street property. President Kiella suggested sending a certified letter. He inquired about a bill for the taxes. Director Dorfman said the library will be billed for 2016 year. She stated 315 Hubbard is off the tax rolls but 319 Hubbard will not be until next year.
On 327 Hubbard Street Director Dorfman said the library needs to work with the city and the owners to adjust the historical district to include the owners’ building. The owner would like reassurance that the building is in the historic district. All agreed that the Facility Committee should shepherd this.
331 Hubbard – Director Dorfman has notification from Abonmarche that the corner of the library’s 1976 addition is part of the platted Walnut Street. This could encumber getting clear title to the library building from the city. Tony McGhee of Abonmarche has informed Director Dorfman the required plat change is a lengthy process involving circuit court and this may be necessary. Scott Hogen, the library’s real estate attorney, is still researching the issue but currently does not see a need to take that step, stating that the city has long vacated that portion of Walnut Street. The Director said Attorney Hogan is thoroughly researching this issue.
Director Dorfman spoke with City Manager Rob Hillard who suggested a letter of agreement be presented to the city council. SHPO has the right of first refusal; the city will need to write to SHPO to complete that requirement. At the Director’s request the board approved contacting Attorney Hogan to draft an agreement which can be used for this process, agreed by acclaim.
Director Dorfman stated 329 Hubbard is the library’s current exit drive, part of what the city will give to the library for $1.00.
Director Dorfman stated the site work is done and she had listed all the property contacts as information for future reference, especially for Sharon who will be interim director when Director Dorfman leaves.
Ballot Proposal Strategic Communication Plan update – Polly
Polly shared the election is 11 weeks from this date. She stated that after Memorial Day people will pay attention to the Improvement Plan and the Millage request. She said the library board members will need to be more visible. Polly requested a special meeting next week for a training workshop. The date was set for June 3rd at noon. Polly said the YES committee needs additional help and testimonials from community members. Polly passed out a document with a list of how many ballot proposals are on the August 2 ballot.
New Business – none
Board Member Comments – none
By acclaim the meeting was ended at 9:09 PM. The next meeting is a training workshop on June 3rd at noon.