Geneseo Public Library District
Board of Trustees Meeting
October 11, 2010
The Board of Trustees of the Geneseo Public Library District met in regular session in the Hammond Room of the Library on October 11, 2010. President Gary ZumMallen called the meeting to order at 6:30 with the following members present: Jeanne Brucher, Barbara Erdman, Dave Johnson, Holly McAvoy, and Gary ZumMallen. Darline Holland and Dr. Jan Dyke were absent. Also attending the meeting were Library Director Claire Crawford, Jim Luikart to present the Financial Report, Susan Pierce and Kim Bollinger representing the Staff, and Linda Altermatt as scribe.
There was a change to the Agenda with the addition of an Executive Session to consider matters of real estate and personnel.
There was no comment from the citizens who were present.
The Board considered the minutes of the meeting held on September 13, 2010. Holly McAvoy made a motion to approve the minutes as presented. Barbara Erdman seconded that motion and in voice vote all present approved the motion.
There were several pieces of correspondence to be shared with Board members. The Geneseo Foundation noted that their pledge of $500,000 will be presented over a period of five years, 20% each year, beginning April 1, 2011. The Chamber of Commerce sent a note thanking the Library for the support of the Trains, Plains, and Automobiles Event which took place in September. Jesse White, who serves as State Secretary for Illinois Libraries, sent a note of thanks to the Library Director, Claire Crawford.
Dave Johnson opened the Financial Report. There were a few large bills. The bill for the new microfiche reader-printer was paid through a grant from GIFT. The cost of the blueprints was another major item; however, expenditures related to the building project are paid from special funds set aside for that purpose in the Building Fund, the Special Reserve Fund, Myers Trust, and the Hammond Trust and do not come out of regular tax-generated funding. Recent checks written to the architectural firm are actually paid through State Grant monies held in reserve for some time. The summary of expenditures for the new building will be increasing as the project progresses and will be listed separately on the Financial Report.
Jim Luikart reported that the Illinois Funds are showing a very low interest return. This account serves mainly as a depository for state funds on a short-term basis. The account shown as SBM is actually Sterling Business Machines. With no further questions before the Board, Dave Johnson made a motion to approve the Financial Report and Bills Paid Prior to the Meeting. Jeanne Brucher seconded that motion and in roll call vote all members present approved the motion.
The architect, Alan Armbrust, has presented a bill for the second payment in the amount of $30,000. The architect’s bill is based on a percentage of the estimated construction cost. After some discussion, the Board took a roll call vote approving payment of the bill; but they turned the matter over to the Library’s attorney, John Bean, for further resolution with a possible adjustment of the last payment to reflect the actual cost of construction.
Building and Leadership
Dana from Paragon continues to inventory the Library’s furnishings and decorations to create a plan for the new building. Holly McAvoy and the “panel” designated by the Board as well as staff members will work together with Dana to finalize the plan. The City has requested that the Library pay for the construction of sidewalks around the library site to join onto the existing sidewalk. However, in the future, the City plans to regrade and/or eliminate the drainage ditch on the east side of the building site. At that time, the Library’s sidewalks will be removed. The water retention plan for the building site has been approved by the City of Geneseo.
Library Director Claire Crawford presented the Librarian’s Report. The ground-breaking ceremony at the new building site and the Style Show fund-raiser were both very successful public relations events. The Staff was scheduled for an In-service Day on Friday, October 22 for a training event. Abilities Plus has given the Library a $500 donation. The Per Capital grant money will probably be received later than usual, possibly January of 2012 instead of April 2011. The new down-loadable audio books have been very popular. Library Director Crawford hopes to expand this program to purchase an addition for children’s books. So far, it is not possible for libraries to make arrangements for books to loan that are readable on the new screen reading devices.
There was no Unfinished Business to consider. Dave Johnson made a motion to move into Executive Session at 7:15 PM. That was seconded by Barbara Erdman. At 7:20 the Board went into Executive Session.
At 7:30, with the arrival of John Bean, Dave Johnson made a motion to leave Executive Session and return to the regular meeting. That was seconded by Barbara Erdman. At 7:31, the Board returned to Building and Leadership.
Building and Leadership, continued
The contracts for the construction of the new library building were dated October 15, 2010 and were signed by representatives from Precision Builders, Inc. Representatives from the Library Board and Central Bank signed the contract at the meeting. Mark Mosbarger signed as a representative from the bank. Vice-President Holly McAvoy and Finance Chair Dave Johnson signed as representatives of the Library Board. Gary ZumMallen had a question regarding the use of local sub-contractors that was forwarded to Precision Builders through John Bean. Under the advice of John Bean, the Library Board passed an ordinance approving the procurement of a construction “bridge” loan in the amount of $850,000. In a roll call vote, all Board members present approved the ordinance. In a second roll call vote, all Board members present approved the procurement of the loan itself. Barbara Erdman made a motion to approve the procurement of the loan and Jeanne Brucher seconded the motion. For a fee of $200 per month, the Attorney Title Guarantee Company will act on behalf of the Library to review all certification from Alan Armbrust on construction completed. ATG will issue all checks, including those sent to subcontractors. Those checks will be sent to Attorney John Bean who will ascertain all liens are clear. It is estimated that this project will be completed with a total of eleven or twelve monthly “draws” on the Library funds. It is not likely that the bridge loan money will be needed in any way until draw eleven or twelve. The process of paying the bills will need to be approved at regular board meetings. Library Director Crawford was asked to check with Jim Luikart for acceptable lead time to ensure inclusion of a bill in the regular monthly meeting business on the second Monday of each month. One copy of the paperwork was provided to the Library, one to the Bank, and one to the lawyer.
In regard to the mortgage itself, the proposed terms were for a loan of $850,000 for twelve months at 4 ½ % monthly interest. This loan is for construction purposes only; any extension of the loan will need to be renegotiated at the end of the year. Existing funds for construction will be used first before any borrowing. This is tax exempt financing and no interest will be charged until funds are actually drawn on this account. The bank will hold a first mortgage on the new construction site and the existing Library building with value of the existing building based on the appraisal done by Hattery Real Estate Appraisal. The Library will be required to maintain insurance on the existing Library and a risk insurance policy at the new building site. The promissory note was signed by Dave Johnson, Holly McAvoy, and Gary ZumMallen and was notarized. It was agreed that John Bean would record the mortgage. In addition an indemnity agreement was signed holding ATG free of risk in acting between the Library and Precision Construction. Gary ZumMallen’s final signature on the construction contract with all questions resolved was to be on Thursday morning, October 14 at 9AM at John Bean’s office. Representatives from Precision will pick up their copy of the contract later that day.
At 8:30 PM Dave Johnson made a motion to leave the regular session and enter into a second executive session with the additional presence of Attorney Bean. At 8:47 the Board left Executive Session and returned to regular session.
Building and Leadership, continued
Holly McAvoy made a motion to direct Claire to gather information from three real estate offices regarding the sale of the current Library building. Possession of the building will be negotiated to accommodate the move to the new building as it is completed.
Central Bank has reported that there is approximately $10,000 in unpaid pledges toward the construction of the new building. Holly McAvoy was asked to compose a letter to be mailed out to all contributors, updating the current status toward completion of the project.
With no further business before the Board, Holly McAvoy made a motion to adjourn. Barbara Erdman seconded that motion. The meeting adjourned at 8:53. The next meeting will be at 6:30 in the Hammond Room of the Library on November 8, 2010.