MINUTES OF THE REGULAR MEETING
OF THE
NORTHLAKE PUBLIC LIBRARY DISTRICT
BOARD OF TRUSTEES
MAY 16, 2013
The regular meeting of the Northlake Public Library District Board of Trustees was called to order at 6:37 p.m. by President Sonya Teets. Present were Board members: Blaskey, Gutierrez, Rivera, Mukite, Teets. Absent Board members: Garcia, Salo. Also present were Steve Larson and John Miller of Ehlers, a financial advisory firm; Sharon L. Highler, Library Director; and Mary Jane Garrett, Head of Technical Services.
The Board meeting scheduled for April 18, 2013, had been cancelled due to flooding in the area.
The Board approved the agenda for the meeting, except the Executive Session, which was not needed. Approval was on a motion by Rivera with a second by Blaskey.
AYES: All.
Minutes of the Board Meeting of March 21, 2013, were approved on a motion by Gutierrez with a second by Rivera.
AYES: All.
The Board read and accepted the following: the Treasurer’s Reports of March 31 and April 30, 2013; the Bills Payable/Paid Report for May 16, 2013; the Revenue and Expense Reports for March and April of 2013; and the Statistical Circulation and Acquisitions Reports for March and April of 2013. Acceptance of the above reports was on a motion by Rivera with a second by Gutierrez. Roll call vote:
AYES: Blaskey, Gutierrez, Rivera, Mukite, Teets.
NAYS: None.
ABSENT: Garcia, Salo.
Total bills payable: $147,186.99.
Total bills paid: $149,689.95.
ADDENDUM: Bills paid report total was wrong, and has since been corrected. The Board voted on the agenda total ($149,689.95), which was correct.
The librarians’ reports for March through May 2013 were read and accepted with the appreciation of the Board. Highler discussed portions of her report in more detail with the Board. A lot of new technology has been added during the past two months. Staff have been trained and are getting accustomed to using it. The new company for computer reservations and other technology, TBS, has been very responsive when any problems have been discovered. The installation of the new technology took longer than expected because of previous computer network settings, but the problems were solved.
President Teets had nothing additional to report.
Vice President Rivera had nothing additional to report.
Mukite reported on the fund development for the Hulk project. The project received a good response at the Chicago Comic & Entertainment Expo (C2E2), held April 26-28. At the time of this Board meeting, almost $2,500.00 had been raised. The project had been featured as a news item in a number of publications and online, and was due to be featured in the Chicago Tribune‘s RedEye that week.
6:53 p.m., Salo arrived.
Highler has encouraged all staff to publicize the Hulk project, especially through email and social media. She encouraged Board members to publicize the project also. Blaskey suggested contacting Northlake City Hall to put the Hulk project on the Comcast local calendar.
7:00 p.m., Steve Larson and John Miller of Ehlers began their presentation to the Board about refinancing the library district’s building bonds. The major advantage of refinancing would be to save taxpayers money. Board members received handouts giving background on the Ehlers firm and on Larson and Miller, and giving information about how the refinancing of the building bonds would be done and factors affecting it. The challenge is figuring the best time to refinance the bonds. The Board would decide what would be the minimum benchmark of savings they will accept, and would adopt an ordinance stating this decision. The financial advisors would then go to work on negotiating the sale of the bonds and the options involved. The district’s financial planning is an important influence on negotiations. Financial planning would include a capital replacement plan. Refinancing can be before, during or after the call option on June 1, 2015.
The Board discussed a number of aspects of refinancing with Larson and Miller. Highler reported that we have recently had our rating review. Our current rating is “A+”, an improvement over our former rating of “A”. What is the probability of, and how long does it take to, improve our rating further? Would it be better to wait for a possible rating improvement, or get the savings that the “A+” rating will give us now? Larson reported that the rating also depends on the socioeconomic factors of the community, etc., not all of which are predictable. If interest rates remain the same, savings increase the closer you get to the call date. In Larson’s “cautious opinion”, interest rates won’t go up within the next six months. He is not pushing to refinance now, but the Board needs to be prepared to refinance within about two years. Part of a financial advisor’s work is to monitor the situation for the client. Professional and additional fees are usually about 1.5%. The next steps and decisions needed were presented. It is recommended that, within the next six months, the Board adopt a Parameters Ordinance that would last between four and six months and have a sunset date. After the sunset date, another Parameters Ordinance would need to be adopted.
7:57 p.m., Larson and Miller were thanked for their presentation and left.
Mukite has been officially elected as Trustee from the April 2013 election. At the June 20, 2013, meeting he will be sworn in and the Board will be reorganized. The May meeting is the last one for Teets. One vacancy remains on the Board. Trustees were reminded to be thinking of people to propose as candidates for appointment as Trustee.
All required Statements of Economic Interests for Cook County by the Board have been filed.
The new poster printer has arrived, and the first training session was done this week. We have chosen a lease program, with option to buy.
The early-bird registration date for the ALA Annual Conference has passed. However, Trustees may still speak with Highler if they wish to attend.
The six-month Treasurer’s Statement of Receipts and Disbursements was accepted on a motion by Rivera with a second by Blaskey. Roll call vote:
AYES: Salo, Blaskey, Gutierrez, Rivera, Mukite, Teets.
NAYS: None.
ABSENT: Garcia.
The Board discussed a plan for a “Letter of Credit” for the district’s U.S. Bank account. Highler stated that our auditor has said that this was an acceptable action for protection of our deposits, in accordance with the recent U.S. adoption of the Basel III rules. The plan was accepted on a motion by Rivera with a second by Blaskey. Roll call vote:
AYES: Salo, Blaskey, Gutierrez, Rivera, Mukite, Teets. NAYS: None. ABSENT: Garcia.
The annual health insurance review was discussed. Our insurance premiums have gone up about 7.2%, which is considered relatively low. Because of changes in health insurance regulations (“ObamaCare”) that occur on January 1, 2014, our contract covers eighteen months and begins July 1, 2013. By law, we can no longer pay percentages of premiums to staff, but we can pay a specific dollar amount, the same amount for each eligible employee. Highler is proposing funding each eligible employee $438.42 per month as part of the premium, which would be 80% of the HMO single rate. Employees can then choose the coverage for which they wish to pay the remaining amount. For example, if HMO coverage is chosen, the employee pays less than if the PPO coverage is chosen. The Board agreed to this proposal. Dental insurance was then discussed. The district has previously paid 100% of the PPO coverage for dental insurance. The Board proposed reducing the library district’s coverage to to 80% of the premium. After further discussion, it was decided that the district’s amount of the premium would be equal to 80% of the PPO coverage. The Board voted to fund employee health insurance at the base rate of $438.42 per month, and employee dental insurance at the base rate of $26.80 per month. Approval was on a motion by Blaskey with a second by Rivera. Roll call vote:
AYES: Salo, Blaskey, Gutierrez, Rivera, Mukite, Teets. NAYS: None. ABSENT: Garcia.
A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is required for our 2014 Per Capita Grant application. Library department heads are doing a SWOT analysis of the library itself. Highler would like the Board members to do a SWOT analysis focusing on the library’s community. The form and explanantion were given to each Board member, to be completed by June 20, the next Board meeting.
Riders and vehicles for upcoming area parades were discussed. The Stone Park Memorial Day Parade is May 27. The Northlake Days Parade is June 30. The library district will provide the candy to throw. We need more volunteers plus vehicles for the parades. May 20 is the deadline for setting up the vehicle and volunteers for the Stone Park parade. We have at least one volunteer from the staff. Highler stated that some Board presence is needed in the parades. After discussion, a vehicle and Board volunteer were arranged for the Stone Park Memorial Day Parade on May 27.
No members of the public were present.
The next regular Board meeting is scheduled for June 20, 2013.
The meeting was adjourned at 8:48 p.m. on a motion by Blaskey with a second by Rivera.
AYES: All.
Barbara Salo, Secretary