CALL TO ORDER
The meeting was called to order by President Mike McNeil, with the following Board members attending: Jane Callahan, Chris Colby, Calvin Guyer, Phil Henoch, Ed Hruska, Mark Neville, Sue Reinke, Elizabeth Ritman, Alan Sessler, Harry Swedlund, Joanne Swenson, and Bill Wiktor.
Staff Present: Audrey Betcher, Library Director; John Hunziker, Communications Coordinator; and Kathy Olson, Administrative Assistant.
APPROVAL OF MINUTES
Motion by Mark Neville, seconded by Bill Wiktor to approve the minutes from the October 22, 2008, meeting as presented. Motion carried.
LIBRARY BOARD AND DIRECTOR'S REPORT
Audrey Betcher reported that the 2009 budget is a 3.2% increase over the 2008 budget. This is a very flat budget; with the majority of the increase in contractual obligations, staffing and utilities.
Library staff has begun discussions about bookmobile replacement which will take place in 2010. Discussions have centered around whether we continue as is or make some changes to ensure that the bookmobile fulfills its mission. The cost of a new vehicle will be around $300,000 and will come from the Vehicle Replacement Fund.
We are working with the County Planning Department to do an analysis of who we reach or don't reach. Once we receive the data, the Board may have to look at how we do things; is our focus in the right place.
COMMITTEE REPORTS
Advocacy: No report.
Finance: The committee met with representatives from Windsor Financial who reviewed the Endowment Fund's performance. The balance has decreased about 20-25% over the past year, but that is better than many other funds. The committee also met to discuss the 2009 budget and discussed whether we should consider invading Endowment Fund principal to support library projects.
The Board discussed how the Endowment Fund was set up. There were no formal documents created governing this fund, although we have operated with the understanding that the target is to disburse 5% of the market value as of September 30, without invading principle.
Jane suggested creating an operating rule that would take into account extraordinary economic circumstances such as we are currently facing.
Calvin stated that some foundations put a spending policy in place to allocate a percentage based on a three year average. We should also define whether capital gains are treated as principle. In a permanent endowment, the money received is to be invested and only the earnings spent. A quasi-endowment functions as an endowment, but retains the ability to spend principal if needed. It appears that we are operating under a quasi-endowment.
Jane volunteered to draft language regarding the endowment fund.
Kathy Olson reviewed the proposed 2009 budget.
Motion by Sue Reinke, seconded by Chris Colby, to approve the proposed 2009 budget. Motion carried.
Development: Foundation representatives met with Karel Weigel to continue discussions on partnering with Mayo on future projects. Their previous commitment was unique in helping build our endowment fund, and such funding would not be considered in the future. Karel indicated that Mayo sees the library as a significant asset to Rochester and Olmsted County. Karel seemed most interested in improvements in the Children's area, although Mayo only provides a maximum of 10% of funding for capital projects.
Since that time John has had follow-up discussions with other organizations such as partnering with First Steps to do storytime kits. It might be possible to work with First Steps to do storytime kit delivery to day care centers or unlicensed neighborhood daycares. The storytime kits program would be vastly enhanced if we could provide delivery service, which would cost about $5,000-$6,000 annually.
Library staff has also met the project manager for the children's hospital at St. Mary's and the Mayo building. He has agreed to come to the library and do a walk through of the children's area and give his thoughts and opinions.
Special Events: Wit, Wisdom & Wine is coming up on January 10. We are asking Board members to either provide or solicit donations for the silent auction.
We are also putting together a romantic evening package for a raffle. The package will include a stay at the Kahler Grand Hotel, champagne, crystal, chocolates, etc.
If Board members have people they want to receive invitations, send the names/addresses to Kathy and she will make sure they are put on the mailing list.
OTHER ITEMS
December 7th is the Friends Holiday Book and Bake Sale.
2009 Officers
The proposed slate of officers for 2009 is as follows: Mark Neville, President; Lois Marris, Vice-President; Harry Swedlund, Treasurer; Phil Henoch, Secretary.
Motion by Chris Colby, seconded by Ed Hruska, to approve the 2009 slate of officers. Motion carried.
Library Director Fund
Audrey brought up a suggestion at the last meeting about creating a separate fund that would be made up of donations which are not ascribed to any specific area of priority. This fund would allow the Library Director the flexibility and ease to take advantage of unexpected opportunities and new initiatives or to supplement an area or program that is restricted due to budget constraints. Donations would have to be designated to that fund and distribution would be at the discretion of the Library Director.
Motion by Jane Callahan, seconded by Joanne Swenson, to create a Library Director's Fund to be administered through the Foundation. Motion carried.
Recruitment of New Board Members
Dan Berndt and Trevor Westrom will be leaving the Board at the end of the year. If anyone has suggestions for new Board members, please submit them to Kathy, John or Mark.
The next meeting is scheduled for Wednesday, January 28, 2009, at 4:45 p.m. in Meeting Room B.
There being no further business, the meeting adjourned at 5:30 p.m.
Respectfully submitted,
Kathy Shimek Olson
Secretary Pro Tem