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Minutes Library Board of Trustees 7 24 08~/'~+ _ ~G //V ~1~ Carnegie-Stout Public Library Board of Trustees' Meeting Minutes of ]uly 24, 2008 The Board of Trustees of the Carnegie-Stout Public Library (C-SPL) met in the Library Board Room at 4:00 p.m. on Thursday, July 24, 2008. Present: President Diann Guns, Secretary Kristen Smith; Trustee Paula Connors; Trustee Becky Hauder; Trustee Beverly Kolz, and Trustee Elizabeth Leeper (participated via conference phone); Library Director Susan Henricks; and Recorder Denette Kellogg. City Staff.• City Manager Mike Van Milligen, 50 W. 13th Street, Dubuque, Iowa Public Present: Jason Burds, 10768 Cox Springs Road, Peosta, Iowa Deborah Fliegel, 1860 Stumptown Road, Platteville, Wisconsin Colleen Kersch, 456 N. Booth, Dubuque, Iowa Ed Vandermillen, P.O. Box 77, East Dubuque, Illinois Daryl Mozena, 900 W. 3rd Street, Dubuque, Iowa Terry Mozena, 900 W. 3rd Street, Dubuque, Iowa Geri Shafer, 1207 Adeline, Dubuque, Iowa Jeff Mozena, 1207 Grove Terrace, Dubuque, Iowa Tim Conlon, 430 Wartburg, Dubuque, Iowa Ed Ritts, 1960 S. Grandview Avenue, Dubuque, Iowa Cinda Welu, 2609 Broadway, Dubuque, Iowa Dick Vorwald, 2921 Washington,- Dubuque, Iowa Fred Miller, 2462 Central Avenue, Dubuque, Iowa Fran Henkels, 890 West 3rd Street, Dubuque, Iowa Mary Rae Bragg ,Dubuque Telegraph Herald Reporter, Dubuque, Iowa 1. Board President Guns called the meeting to order 4:02 p.m. and the agenda was adopted with the addition of a check presentation by the Dubuque Old House Enthusiasts. Guns reported that Board Member Michael Shubatt has resigned due to his recent appointment to Judge for the Iowa Judicial District 1A. The Board expressed its gratitude to Shubatt for his dedicated years of service as Trustee of the Library Board and wished him success in his new appointment. Guns welcomed the members of the public and requested that they sign in for the record. Library Board Trustee Elizabeth Leeper joined the meeting via conference phone at 4:05 p.m. "Moved to adopt the meeting agenda of Thursday, July 24, 2008 with the addition of a presentation of a donation to the Library Renovation Fund by the Dubuque Old House Enthusiasts. " Motion: Kolz Second: Connors Vote: Aye - 6; Nay - 0 2. Presentation by the Dubuque Old House Enthusiasts (DOHE) - Guns welcomed Dick Vorwald, DOHE President and Cinda Welu, DOHE Grants Committee Chairperson. Vorwald reported on the mission of the DOHS and on the efforts of its many volunteers that participate in the Annual DubuqueFest Old House Tour each year. Vorwald reported that for the past 22 years the organization has been conducting an Old House Tour. The funds raised from the house tour are donated to worthwhile preservation related efforts and that this year, the Library renovation project was selected to receive the DOHE Community Grant in the amount of $4,000. Vorwald presented the check to the Library Board on behalf of the DOHS. Welu stated that the DONE is very pleased to be able to give back to the community and to worthwhile projects such as the Library renovation project. Guns received the check and on behalf of the Library Board thanked the DOHE for its donation to the renovation project and for its ongoing hard work and efforts. 3. Library Curtis Collection -Review and Action on Offers Received: Guns reported that prior to this meeting, four offers had been received in regard to the sale of the Library owned Edward Curtis Collection. The Library's Curtis collection is a limited edition set of 20 volumes of ethnographic text about the American Indian, illustrated with high quality photoengravings. Each volume, bound in leather, is accompanied by large size photogravures. Henricks reported that two of the offers received from Andrew Smith Gallery in Sante Fe, New Mexico were withdrawn. Guns reported that two offers remain and reviewed the memo to the Library Board from the Library Director in regard to information about the offers received dated July 21, 2008 and the shortfall in funds needed to move forward with the Library renovation project. The first offer is from James Maroney, Inc. for $1.1 million to be paid in cash in 30 days time. The second offer is from the newly formed Dubuque Cultural Preservation Committee for $500,000, to be paid on or about October 1, 2008. 2 Guns reported on a request received from a group of investors, The Dubuque Cultural Preservation Committee, to present their offer to the Library Board. Jeff Mozena, Premier Bank, addressed the Board and reported on the members of the Committee, a newly formed Iowa General Partnership, as himself, Darryl Mozena, Tim Conlon, Randy Lengeling, and Mark Falb (not present.) Mozena read the letter, dated July 24, 2008, addressed to the Library Board of Trustees that contained information about the newly formed business group, the offer itself, and stated that the collection, if sold to them, would be housed at the Dubuque Museum of Art. He emphasized the group's commitment to the collection's preservation and availability as a community resource. Conlon also addressed the Board and asked to read a letter presented at the meeting from Dubuque Museum of Art Director Edwin Riffs dated July 23, 2008. Point of order was called to hold the letters until public input. Guns accepted the letters into record. Conlon read the letter that addressed the Library's two Martin Johnson Heade paintings. Henricks reported one correction to the letter presented, in that Maintenance Supervisor John Young and Administrative Assistant Denette Kellogg discovered the paintings during the process of an art audit and subsequently moved the paintings to the Special Collections room where Library Director Susan Henricks contacted Riffs for his opinion on the authenticity of the two paintings. Conlon read a second letter from Ritt received dated July 22, 2008 in regard to the Museum's agreement to insure and show the collection, should the Dubuque Cultural Preservation Committee purchase the collection and loan it to the Museum. Connors asked if the ownership would be an outright gift by the Committee to the Museum. Jeff Mozena responded that the Dubuque Cultural Preservation Committee would maintain ownership. Connors expressed a concern that the collection could be sold by the private group. Mozena reported on the group's intent to keep the collection in Dubuque. Smith asked why the offer was so far undervalue in comparison to the value of the collection and less than a verbal offer spoken about a month ago. Mozena reported that they discussed the gap with the City Manager who said he would recommend that the shortfall would be covered in future Capital Improvement Project (CIP) requests. Conlon stated that they only had so much time to raise money. Mozena reported that the collection would remain in public access for Dubuque citizens. Guns reported that the Board's motivation to sale the collection, as a last resort, was driven by the need to fund the Library renovation project to help 3 the project move forward. The Board had hoped and believed that donations from the Community and City support would fund the project without the sale of this special Library asset. Henricks provided a financial summary of the renovation project that included the need to replenish Library Trust funds and increases in materials and construction costs since the last cost estimate 18 months ago. Henricks estimates the shortfall between $1 million and $1.2 million. The sale of the Heade painting, that she included in these funds; was in addition to these estimates and not intended to make up for the shortfall. Kolz reported that the Heade painting might not sell for a period of time. Kolz asked if the City would make up the shortfall should the painting not sell for a while, or not sell at all. Connors asked if the City could make up the shortage, whether $300,000 or $600,000. City Manager Mike Van Milligen assured the Library Board that he would recommend to the City Council that the shortfall be made up in future capital improvement project funding whether or not the Heade painting is sold right away. Van Milligen reported that the project can have alternate bids, which would allow for this funding to occur over a few years time. Smith asked if the City could reconcile its previous position of the funds needing to be in the bank before the bid process could begin. Van Milligen responded yes and that with bid alternates this can be accomplished. Smith asked if the bid process would move forward quickly if this scenario is approved and Van Milligen responded yes. Guns asked Ritts how the Museum would share this cultural resource with the community. Ritts reported that they would hope to have educational programs for the schools. Conlon reported that the group intends to conduct any restoration needed to the collection beginning in the next few years. Smith asked, as point of order, to allow any other input from the public present and public input was invited. Cinda Welu addressed the Library Board. Cinda stated her love for the Library and the Museum. She expressed aconcern/suggestion that the community members interested in purchasing the collection, donate the funds needed for the project and keep the collection at the Library. She expressed a second concern that the Museum is private and charges a fee to citizens to view these items, whereas the Library is free and open to the public. 4 Fran Henkels addressed the Board. As a friend of the individuals of the Dubuque Cultural Preservation Committee, he expressed his support for their offer and for the Committee's intent to preserve this collection in Dubuque. Darryl Mozena addressed the Board. As a Dubuque Cultural Preservation Committee member, he hopes to provide more information about this collection to local colleges and schools. He reported that the Museum has the experience to bring this collection to the Dubuque community. Leeper asked if the collection would be available to the Dubuque community for free. Darryl Mozena responded that they definitely plan on providing "free" days to the public and Ritts agreed. Van Milligen again assured the Library Board that funding would be provided and that the City Council would approve of letting the project out for bid immediately or in a very short time. Hauder asked if the funds are committed or would the City Council need to approve the funds. Van Milligen responded that the City Council has the final word and approval of funds. Guns closed public comment and brought the agenda item back to the table. "Moved to accept the offer for sale of the Library's Curtis Collection as stated in the offer from James Maroney on behalf of the Amon Carter Museum for $1.1 million dollars. " Motion: Kolz Second: Connors Discussion: Kolz explained her reason for the motion. The offer from fhe Dubuque Cultural Preservation Committee (DCPC) is so far below market value and the Board had agreed at its June meeting not to accept any bids lower than the market value. She reported her appreciation to both the Preservation Committee and to the City Manager for their work and support. Kolz reported her support of the Amon Carter Museum as it specializes in this area and has the space and staff to utilize the collection to its fullest value. 5 Connors reported her second to the motion in that she is not conFdent that the City Council will cover the funding shortages the project has. Guns reported that she is not in agreement with this motion. Guns reported her belief in the City Manager's commitment on behalf of the City Council for funding as promised. While she agrees that the collection at Amon Carter Museum would be greatly utilized and viewed, she believes that with the promises from the Dubuque Cultural Preservation Committee the collection will be seen and used more in our .Community. She expressed a concern about creating discord between the Library and art advocates. Leeper reported her support of the offer as this would mean the project could move forward immediately without any delays as construction fees usually increase. Guns asked the other Board members what value keeping the collection in Dubuque would have. Leeper responded that she does realize the value, but the $600,000 difference in the offers is a great deal of money on behalf of the taxpayers of Dubuque. With her other concern being that community members with resources waited until now to become involved, and not showing an interest in the collection throughout all of these years until now, creating an air she described as "opportunistic. " Guns warned of the ramil7cations of this offer being accepted as this group is very influential and not to discount what this could mean down the road to the Library. Guns allowed additional input from the City Manager. Van Milligen promised that there is nothing that would keep or stop the renovation project from moving forward immediately if the Board would accept the offer by the Dubuque investors. He also showed support for sale of the collection to the Dubuque investors. 6 Guns indicated that the Board is not a body unto itself, and if the Council has agreed to fund the project, that the Board give weight to that support. Connors reported speaking with City Council members and not receiving full support of this decision by the City Council for funding and for the project to move forward promptly. Van Milligen reported he has spoken with each City Council member and they support moving forward immediately. Smith and Hauder expressed a concern and a responsibility to the citizens of Dubuque to ensure a fair exchange or price for the asset. Smith reported that the investors had originally offered a higher figure that she was more comfortable with, and now the figure is much lower. Hauder agreed and reported that there was a verbal offer from the investors for $800,000 and she felt more comfortable going to Council to ask for the gap in funding. Kolz expressed a concern that early on in the Library capital campaign, that some campaign partnerships were used to leverage opportunities for other groups instead of partnerships being formed with the Library. Vote: Aye - (3) Hauder, Leeper, Kolz; Nay - (3) Connors, Guns, Smith Motion failed. Guns reported that the motion failed and asked the Board for any other discussion or motions. "Moved to accept the offer for sale of the Library's Curtis Collection as stated in the offer from the Dubuque Cultural Preservation Committee, an Iowa General Partnership, for $500, 000. " Motion: Smith Second: Connors 7 Discussion: Leeper asked for City Manager Mike Van Milligen to clarify the City's assurance for funding. Van Milligen reported that the Board would be doing the Community a favor by passing this motion. Van Milligen stated that if this motion passes it would allow the project renovation project to go to bid immediately, the Heade painting would be sold and the Library Gift Trust Funds would be replenished. Using the balance of the sale toward completing any components of the project that was delayed because of the bidding. Whatever is not done through those mechanisms, he has had discussion with the Mayor and City Council and Van Milligen is committed to making recommendations in the future to fund the rest of the project. Van Milligen reported that once bid, the project may come in less than estimated and additional funding may not be needed. Whatever the result, he is committed to fund the entire project until completed if the Board accepts this offer. Henricks expressed a concern that commitments and Fnancial options discussed did not include the cost increase in the project which could run up to $340,000. The Board may want to contact the architect or Durrant to learn exactly what the increase will be. A large funding shortfall will result in so many alternates that the project may not meet the criteria to be phased in. Van Milligen stated that he commits that if the Heade painting is not sold by the time to award the bids, the City will frnd the $340,000 that would cover that gap until the art work is sold. Vote: Aye - 6; Nay - 0 Motion passed. Cinda Welu expressed a concern that public meeting protocol was not followed. The public present at the meeting exited the meeting. 8 Henricks reported that she is scheduled to meet with the .project Architect and she will be discussing alternates bids. The Board reported on the City Manager's promise that the entire project as designed would be funded and completed. 4. Approval of Library Board of Trustees' Minutes of Tuesday June 24, 2008. "Moved to approve the Board minutes of Tuesday, June 24, 2008. " Motion: Kolz Second: Connors Vote: Aye - 6; Nay - 0 5. Board President's Report A. Nomination of Board Officers -The Board discussed appointments for officers to the Library Board. "Moved to approve the following slate of officers for the coming year: President -Diann Guns, Vice President -Beverly Kolz, Secretary -Kristen Smith. " Motion: Kolz Second: Connors Vote: Aye - 6; Nay - 0 B. Communication with the Dubuque City Council. Guns reported on the summary report of the Board to the City Council from the June 24, 2008 meeting. "Moved to receive and file the Communication with the Dubuque City Council. " Motion: Kolz Second: Connors Vote: Aye - 6; Nay - 0 6. Motion to Receive and File Informational Items: 9 A. Library Director's Report Summary and Update: Henricks provided a written summary of the following items to the Library Board with the additional comments: 1) Library Financial Report -Henricks reported that June marked the end of the fiscal year and the Library came in 2.58% under budget. The Board congratulated Henricks on coming in under budget. 2) Library Use .Statistics -Henricks reported that the end of the year showed a three percent increase in circulation, with the greatest increase in use from Dubuque residents. Both Reference and Directional questions were up for the year (13% and 6% respectively.) 3) Personnel Update -Henricks reported that David March has accepted the position of full-time Custodian. Henricks reported that interviews for the position of Youth Services Manager would begin soon. 4) Library Security -Henricks reported that the while the Library has had its share of behavior issues this summer, this summer has had a significant reduction compared to previous years. Henricks contributes this to both the Police Sub-station located at the Library and zero tolerance for inappropriate behavior. 5) Renovation Update -Henricks reported that on July 30, 2008 a meeting is scheduled at the Library with OPN, Durrant Group, KJWW and City Engineer Steve Brown. Plans for the upcoming bid letting, construction schedule and alternate bids will be discussed. Henricks reported on the Library's portfolios that went with the Curtis collection that the Dubuque Museum of Art discarded. The Board requested Henricks to first try resolving this issue through discussions with the new buyer and the source that has the portfolios for sale and to report back next month. B. Library Comment Cards -The Library Board reviewed the four comment cards received, which included a special poem written about the Library by patron Cinda Welu. 10 "Moved to receive and file the informational update from the Library Director on the Library Financial Report, Library Use Statistics, Library Personnel Update, Security Update, Renovation Planning Update, Proposals for Curtis Collection and four Library Comment Cards. " Motion: Connors Second: Leeper Vote: Aye - 6; Nay - 0 7. Items for Action -Request to Remain Open After Hours: A. Wedding Reception on August 15, 2008 -Henricks reported on a request for anon-alcoholic wedding reception to be held at the Library on August 15, 2008. "Moved to approve opening after hours for a wedding reception on August 15, 2008. " Motion: Smith Second: Kolz Vote: Aye - 6; Nay - 0 B. Library Event on October 3, 2008 -Henricks reported on a Library movie screening for banned books week program scheduled at the Library. "Moved to approve opening after hours for a Library program on October 3, 2008. " Motion: Smith Second: Connors Vote: Aye - 6; Nay - 0 7. Communications/Public Comment -Henricks reported on the receipt of a petition from a group of Dubuque citizens asking that the Curtis Collection be kept in the community. "Motion to receive and file petition from Mark Wahlert and Amy Weber in regard to the Library owned Curtis Collection. " Motion: Smith 11 Second.• Connors Vote: Aye - 6; Nay - 0 8. Library Board Adjournment -The Board adjourned at 5:57 p.m. "Motion to adjourn. " Motion: Connors Second.• Kolz Vote: Aye - 6; Nay - 0 Kristen Smith, Board Secretary 12