Friends of AADL operates a used bookstore in the lower level of AADL’s downtown branch at 343 S. Fifth Ave. Proceeds of the store – about $90,000 annually – are given to the library.

This brief was filed from the fourth floor boardroom of the downtown library at 343 S. Fifth Ave. A more detailed report will follow: [link]

One of two video cameras used to record the May 6, 2013 AADL board meeting. (Photos by the writer.)

Nancy Kaplan, chair of the board’s budget & finance committee, said the committee met after the April 15, 2013 board meeting and discussed concerns that had been raised about the proposal to levy a slightly higher millage rate of 1.575 mills. She noted that administration had proposed cuts to allow the rate to remain unchanged.

The main reduction in expenses came from the materials line item, with nearly $100,000 saved by switching from RFID to bar code technology for handling circulation. AADL director Josie Parker stressed that the library is able to secure those savings without impacting the purchase of materials for its collection.

In addition to the budget, the board also approved a one-year extension on the space-use agreement with the nonprofit Friends of the Ann Arbor District Library, which operates a used bookstore in the lower level of AADL’s downtown branch at 343 S. Fifth Ave. Proceeds of the store are given to the library.

The board was briefed on a proposal that they’ll be voting on next month to upgrade the fiber-optic infrastructure for the Pittsfield branch. Eli Neiburger, AADL’s associate director of IT and production, described that location at 2359 Oak Valley Drive as a “bandwidth backwater,” with about 2% of the Internet connectivity speed compared to other AADL locations. The recommendation is to hire the nonprofit Merit Network to build and maintain a connection from the branch to Merit’s existing high-speed network. The contract includes a one-time cost of $112,150 and ongoing annual costs of $2,625.

The May 6 session also included two statements from board president Prue Rosenthal, which she read aloud during the meeting. One was a letter from the board to Parker, following her annual evaluation. The board praised Parker’s work over the past year, including the recognition and leadership of Parker and her staff at the state, national and international levels. At Parker’s request, her salary was unchanged for the fourth consecutive year.

Rosenthal’s second statement, read early in the meeting, was in response to issues raised at previous meetings during public commentary about the board’s compliance with Michigan’s Open Meetings Act. The board is scrupulous about adhering to the letter and spirit of the law, Rosenthal stated.

At the end of the meeting, resident David Diephuis responded to Rosenthal’s statement, urging the board to videotape its meetings and to allow the public to attend the board’s committee meetings. He noted that the board does meet the requirements of the OMA. “My question to you is what is allowed under the act,” he said. “I believe this community wants more than what’s required.”

The suggestion to videotape the monthly board meetings had been proposed two years ago by trustee Nancy Kaplan but had been supported by only one other board member, Barbara Murphy.

A videotaping of the meeting did occur for the first time on May 6, however. Skyline High junior David Kloiber set up two stationary cameras to record the proceedings. He had been hired by the Protect Our Libraries political action committee, which posted the video on YouTube.

FY 2013-14 Budget

The main items on the board’s agenda related to AADL’s fiscal 2013-14 budget. The board was asked to act on three resolutions: (1) set a millage rate of 1.55 mills – unchanged from the current rate; (2) approve the budget for the fiscal year starting July 1, 2013; and (3) designate the budget as a line-item budget with a policy for disbursements. [.pdf of budget summary from AADL board meeting packet]

The $12.328 million budget assumes a 2.1% increase in tax revenues, based on an increase in property values. The approved budget and millage rate are slightly lower than the draft proposal presented at the AADL board’s April 15, 2013 meeting. At that time, trustee Ed Surovell argued strongly against even the slightest increase in the millage rate, which had been proposed at 1.575 mills. The library is authorized to levy up to 1.92 mills, but in recent years the board has set the millage rate at lower levels.

The budget reflects a 3% increase in the merit raise pool for full-time employees and an increase in hourly base rates for part-time workers. The base rate for part-time workers – known as “casual” employees – hadn’t been raised since 2008, and the administration wanted to make sure that the library’s lower-paying jobs started at more than $9 per hour.

Expenses related to employee salaries, benefits and taxes are by far the biggest part of the budget, totaling $7.995 million – up 3.5% compared to the current fiscal year. Of the non-personnel expenses, the largest line item is for materials, at $1.75 million – down 5.4% ($98,931) compared to the current year’s expenditure of $1.848 million.

FY 2013-14 Budget: Public Hearing

Two people spoke during the public hearing on the budget. Lyn Davidge told the board that it was a little daunting to comment on any budget proposal, because she’s fully aware that there’s a lot she doesn’t know about the budget, and that there’s a lot that the board does know about it. Her concern was the proposed cut to the materials budget – about $99,000 less for the purchase of books, DVDs, and other materials. She hoped the board would address the rationale for this cut, and to let her know if she has misunderstood what this line item actually means.

Don Salberg asked about the proposed 3% increase in the merit pool. No doubt employees deserved it, he said, but he wanted to know if the criteria could be provided to the general public.

FY 2013-14 Budget: Board Discussion

Nancy Kaplan, chair of the board’s budget & finance committee, reported that the committee had met on April 26. At the board’s April 15, 2013 meeting, she noted, some concerns had been raised about increasing the millage. [The committee had originally recommended increasing the millage by 0.025 mills. Ed Surovell had argued strongly against any increase, saying that many taxpayers continue to struggle because of the economic downturn.]

The committee had followed up on those concerns with Ken Nieman – AADL’s associate director of finance, HR and operations – as well as AADL director Josie Parker. They discussed ways to find additional efficiencies while still providing the community with the services it expects, Kaplan said. So now the committee was able to recommend leaving the millage at the current rate.

Margaret Leary said she was glad about the committee’s recommendation, because it’s consistent with how the library has operated in the past, and consistent with what the staff can do – providing a good collection and great services, despite limited resources.

Leary noted that there had been interest expressed during public commentary about the changes that had been made. In reviewing the April draft budget with the current proposed budget, Leary identified three line items that had changed: (1) purchased services had been decreased by $10,000 to $133,000; (2) materials had been cut by about $99,000 to $1.75 million; and (3) library programming had diminished by $37,000 to $235,000.

Seated from left: AADL board members Nancy Kaplan, Jan Barney Newman and  Prue Rosenthal.

AADL director Josie Parker elaborated on those items. The $1.75 million line item for materials that’s proposed in the FY 2013-14 budget reflects about $99,000 in savings from the original draft budget. That line item includes not only the items in the collection, but also includes the materials needed to package and circulate the collection, such as labels and bar codes. The savings is being taken from the latter category.

Specifically, the library is dropping the RFID technology it has used to help manage circulation. That technology is expensive and is no longer being supported by the company that developed it for libraries, Parker said, so the library will be using bar code labeling instead. By changing back to bar code circulation only, the library is able to secure those savings without impacting the purchase of materials for the collection.

Leary paraphrased, noting that the cut has come not from the content, but from the physical processing of the collection. Another example in the past was the elimination of “theft strips,” Leary said, which had been extremely expensive. Leary applauded the administration’s ability to make cuts without impacting the funds available for the collection itself.

Barbara Murphy, who also serves on the board’s budget & finance committee, pointed out that the changes Leary had highlighted were a comparison between the draft budget and the final proposed budget. Some of the changes are smaller if you compare the current fiscal 2012-13 budget with the proposed fiscal 2013-14 budget, she said.

For example, the April draft FY 2013-14 budget had called for an increase of the library programming line item to $272,000, compared to the current fiscal year’s $250,601 for that item. The revised draft budget cuts programming to $235,000.

Jan Barney Newman, another member of the budget & finance committee, said the budget doesn’t show a significant increase in the line item for repairs and maintenance, with the hope that it won’t be needed. In fact, she said, some expenses in that category are unforeseen. [The FY 2013-14 line item for repairs and maintenance is $302,000, a 5.5% increase from $286,338 in FY 2012-13.]

Parker added that any unanticipated costs for repairs and maintenance would be paid for out of the library’s fund balance. As of March 31, the AADL’s fund balance was $8.214 million.

Leary described the budget as conservative. Prue Rosenthal added that the library has a very conservative CFO. Kaplan pointed out that copies of the budget are available at all the branches and online as part of the board’s meeting packet.

Outcome: The budget, millage rate and designation of the budget as a line-item budget – with a policy for disbursements – were approved in three separate unanimous votes. Ed Surovell left after the vote on the millage rate, and did not vote on the budget or line-item resolutions. Rebecca Head was absent.

FY 2013-14 Budget: Additional Public Commentary

During the public commentary at the end of the meeting, Lyn Davidge thanked the board for their discussion and explanation of the line item for materials. She said it would have been nice to have similar explanations for all of the line items that had been changed since the draft budget was proposed. “It was a useful discussion, and I hope to hear more of those in the future,” she said.

Friends of the AADL Space-Use Agreement

A resolution to extend the Ann Arbor District Library’s space-use agreement with the nonprofit Friends of the Ann Arbor District Library for one year was on the  board’s May 6 agenda. Friends of AADL operates a used bookstore in the lower level of AADL’s downtown branch at 343 S. Fifth Ave. Proceeds of the store – about $90,000 annually – are given to the library. [.pdf of current FAADL space-use agreement]

Prue Rosenthal noted that she’d had a brief conversation with FAADL board president Pat McDonald, who had told Rosenthal that she didn’t have any concerns about the agreement. There was no other comment on this item.

Outcome: The board unanimously approved the one-year extension for FAADL’s space-use agreement.

After the vote, Nancy Kaplan reported that she had attended a recent Friends luncheon. She described them as a “wonderful, dedicated group,” and encouraged others to join the organization.

Director’s Evaluation

During the meeting, board president Prue Rosenthal read a letter that had been given to AADL director Josie Parker, following Parker’s annual evaluation by the board. [.pdf of board's letter to Parker] The evaluation had been conducted by a board committee, and discussed with Parker and the full board in closed session, at Parker’s request.

The letter praised Parker’s work over the past year, including the recognition and leadership of Parker and her staff at the state, national and international levels. However, “Since your salary is equitable with those in comparable positions, and at your request, we have agreed that, for the fourth year in a row, your salary will remain the same.” [Parker's salary is $143,114.]

The letter only indirectly alluded to a major effort that took place over the past year – a proposal to rebuild the downtown library, which ended when voters rejected a $65 million bond ballot proposal in November of 2012:

The Board is pleased that the Library continues to operate with a balanced budget year after year while developing and providing new services and seeing increased use of the Library’s services. It is particularly proud of the fact that this can be accomplished while meeting the need of additional maintenance to the aging Downtown facility.
…
Each year presents new choices and new demands. Ann Arbor is a special community, founded and built on learning and information. The Ann Arbor District Library has increasingly been central to our community and its growth and prosperity. It is therefore incumbent upon us to pay special attention to the strategic goal of maximizing the efficiency and utilization of the meeting rooms in all facilities to provide what the community deserves.

When Rosenthal finished reading the letter, the board gave Parker a round of applause. Parker thanked the board, but did not make any additional remarks.

Outcome: This was not a voting item.

Director’s Report

Josie Parker highlighted three achievements of AADL staff members during her monthly director’s report.

From left: AADL director Josie Parker and Prue Rosenthal, president of the AADL board.

The library won “best of show” from the American Library Association for AADL’s online annual report. Parker credited Tim Grimes, AADL’s community relations and marketing manager, as well as other staff for this effort. It’s the first time that the library has won for its online annual report. [The video annual report for the library’s 2011-12 fiscal year runs six minutes and features clips from programs and speakers hosted by AADL, as well as describing new online services and content that’s available for circulation.]

Other ALA awards included “best of show” for the 2012 summer game print material for children, and honorable mention for Jump!, a calendar of events for kids. Parker noted that AADL competes with hundreds of other submissions in these categories, and she congratulated everyone who was involved in working on these projects.

Parker also reported that in the fall of 2012, AADL was asked to do a webinar on its “21st century take on reference services.” Reference resources have changed, but instead of forsaking reference, Parker said, AADL decided to recharge it and change it. Celeste Choate – AADL associate director of services, collections and access – was asked along with others from across the country to participate in a webinar. Choate was subsequently asked to do a similar presentation at a Public Library Association conference, and more recently gave it at a meeting of the Massachusetts Library Association.

Finally, Parker noted that Eli Neiburger, AADL’s associate director of IT and production, would be featured on the May 7 edition of On Point, a news analysis show distributed by National Public Radio. Neiburger was on a panel with Tony Marx, the CEO of the New York Public Library, and others talking about the role of libraries in the digital age. Parker said she was very proud that Neiburger is part of that discussion.

Ed Surovell remarked that “any time we share a library podium with NYPL, we have something here to be proud of.”

The board gave the staff a round of applause.

Pittsfield Fiber-Optic Project

The board is considering a proposal to upgrade the fiber-optic infrastructure for the AADL’s Pittsfield branch. A staff recommendation calls for Merit Network to build and maintain a connection from the branch to Merit’s existing high-speed network. [.pdf of fiber-optic proposal]

Merit, a nonprofit based in Ann Arbor, currently provides AADL’s main connection to the Internet. The Pittsfield branch – located at 2359 Oak Valley Drive – is outside of the city of Ann Arbor’s I-Net (Institutional Fiber Network) and currently uses much slower T1 and cable TV connections.

This robot will not be installing fiber-optic cable at the AADL’s Pittsfield branch. It’s a collage by Ava Lowen, a third-grader at Ann Arbor Open. The piece is part of an exhibit of student work that’s on display on the third floor of the Ann Arbor District Library’s downtown building.

Eli Neiburger, AADL’s associate director of IT and production, gave a brief presentation about the project, describing it as an issue of the library’s ability to meet the public’s demand for bandwidth and connections to the Internet. Pittsfield is the only branch that doesn’t have a high-speed connection, he said. A high-speed connection would provide over 100 megabits of bandwidth. As a comparison, a home cable-modem might be about 4 or 6 megabits.

When Comcast and the city of Ann Arbor were building out a fiber network about a decade ago, the Pittsfield branch wasn’t eligible for a fiber run because of its location outside of the city. Fiber runs allow for nearly unlimited bandwidth, Neiburger explained, because you can always upgrade equipment at either end of the fiber.

The speed of the Pittsfield branch’s connectivity to the downtown library and to the rest of the Internet is about 2% of the speed at the other library locations, he said. “In some ways, it’s a bandwidth backwater, because we’re unable to deliver the data as requested out there.” It reaches “up to capacity and beyond” every day, he added.

After exploring different options, the staff arrived at three alternatives, including the option of keeping the current system. The recommended option is to contract with Merit, an organization that since the 1960s has focused on serving the state’s educational market. Neiburger said that Merit proposed building a new fiber run from the Washtenaw Intermediate School District (WISD) on Wagner Road over to Pittsfield. It would be much more expensive to build a fiber run – “literally cables hanging from poles,” he said – from the downtown library to the Pittsfield branch.

Merit has a robust fiber network, he said. It includes providing the downtown library’s Internet connection – originating from city hall at Fifth and Huron, then linking to the nearby Ann Arbor Hands On Museum, where Merit has equipment, then connecting to the AADL building at 343 S. Fifth. Merit also has equipment at the WISD, and is able to offer the library a gigabit of bandwidth – 1,000 megabits. The connection would run from downtown to Pittsfield, via the “wire closet” at the WISD and new fiber between the WISD and Pittsfield, which the library would pay for. In this option, the library would pay $112,150 plus an ongoing yearly cost of $2,625. It gives the library a 1,000 megabit connection, compared to the current 1.5 megabit connection – a 600- to 800-fold increase in performance, he said.

Another option would be to contract with TDS, the library’s current phone vendor, to build a new T-3 connection of up to 45 megabits. It would be faster than the current connection, but still only about 5% of the connectivity at other locations. This option has a very low one-time cost, Neiburger noted, but the annual cost for the service would be $27,000.

Given the cost structure and the established location of the WISD infrastructure, Neiburger recommended proceeding with Merit to build a fiber connection from the WISD to the Pittsfield branch. The initial cost of the build would be paid from the library’s fund balance in the next fiscal year, with ongoing annual costs paid out of the communications line item in the budget.

Pittsfield Fiber-Optic Project: Board Discussion

Margaret Leary addressed the process, saying it’s the perfect example of how the board handles these kinds of recommendations. The matter had been initially reviewed by the facilities committee. Leary, who chairs that committee, had reported on the proposal at the April 15, 2013 meeting. Next, the staff is making a presentation this month, and the board will vote on a formal resolution next month.

Jan Barney Newman told Neiburger that people have asked her why the library needs more bandwidth, “because everybody does everything on their cell phone these days.” But the library does need it, she added, so what’s the best way to respond to these questions?

Neiburger replied that the library is about the only institution in town that offers high-speed wireless connections to the public at no charge. People can bring their laptops to the library and get a connection that’s faster than a coffee shop or any other location, he said, and you don’t need any credentials to use it. A lot of people use it to download large files that would take a long time to download at their home. “In many cases we’re providing connectivity that’s faster than what’s available in their own homes,” he said.

From left: AADL trustees Ed Surovell, Barbara Murphy and Margaret Leary.

People work at libraries, he noted – that’s been true for centuries. Now, working involves “consuming bandwidth.” People also use it for Skype to make calls overseas. The library is providing a critical public service, he said, “and we take that responsibility very seriously.” Every year, the library experiences more and more demand for data service.

Referring to Newman’s comment about cell phones, Barbara Murphy clarified with Neiburger that to have any kind of wireless connection, you also need some kind of wired infrastructure. That’s right, Neiburger said – saying that everything that every device connects to is ultimately connected to a wire. Also, he said, a fast mobile connection on a phone might be 400k, or 4 megabits for a really fast connection. For the fiber network, “we’re talking 250 or 300 times that, so it’s on a different scale.”

Prue Rosenthal wondered whether it would have been cheaper to make the connection from the beginning, when the Pittsfield branch was built. Neiburger replied that it wasn’t an option at the time, although the building was constructed with conduit because staff was “hoping that this would happen someday.”

Nancy Kaplan wondered how technology has changed since the branch was built. Would it have been the same speed then as the current proposal? Neiburger explained that after a fiber run is built, “the technology can advance without building new infrastructure.” New equipment can be upgraded at either end of the fiber, he said, “to get more speed out of the same pipe.” Using a highway analogy, Neiburger said fiber provides an infinite number of lanes that you can add, by upgrading equipment at either end.

The fiber run will bring the Pittsfield branch up to the same standard as the other locations, he said, which is state-of-the-art for public libraries. There are organizations that have 10 gigabit connections, but that’s on a scale for institutions like the University of Michigan, he said. If the equipment to run a 10 gigabit connection comes down in price, it’s possible for the library’s fiber to support that.

Outcome: This was not a voting item. A resolution for the contract will likely be presented at the board’s June 17 meeting.

Response to Open Meetings Act Questions

During the May 6 meeting, board president Prue Rosenthal read a statement that responded to issues raised at previous meetings during public commentary about the board’s compliance with Michigan’s Open Meetings Act. Specifically, complaints have been made that the board’s committee meetings aren’t open to the public.

The board is scrupulous about adhering to the letter and spirit of the law, Rosenthal stated. The board’s bylaws state that all committees are advisory in nature, and don’t have the authority to take final action or set policy on behalf of the full board.

“We do not hold secret meetings,” Rosenthal said. “We do not discuss the library’s business if there are more than three of us in the same place.” All board decisions are made during public meetings, she said, and the committees simply make recommendations to the full board. [Because the committees consist of only three members – that is, less than a quorum of the board – they are not required to be open to the public. There is also no requirement for the meetings to be closed.]

Rosenthal highlighted excerpts from the OMA, which she said she took from the online Michigan Open Meetings Act Handbook. [.pdf of OMA handbook] The OMA requires a public body to give notice of when it meets. “We do this,” Rosenthal said. All decisions must be made at a public meeting that’s open to the public.

She read from the handbook:

All decisions must be made at a meeting open to the public – the OMA defines “decision” to mean “a determination, action, vote, or disposition upon a motion, proposal, recommendation, resolution, order, ordinance, bill, or measure on which a vote by members of a public body is required and by which a public body effectuates or formulates public policy.” The OMA provides that “[a]ll decisions of a public body shall be made at a meeting open to the public,” and that, with limited exceptions, “[a]ll deliberations of a public body constituting a quorum of its members shall take place at a meeting open to the public.”

“We do this,” Rosenthal stated. She then read a section related to advisory committees:

The OMA does not apply to committees and subcommittees composed of less than a quorum of the full public body if they “are merely advisory or only capable of making ‘recommendations concerning the exercise of governmental authority.’”40 Where, on the other hand, a committee or subcommittee is empowered to act on matters in such a fashion as to deprive the full public body of the opportunity to consider a matter, a decision of the committee or subcommittee “is an exercise of governmental authority which effectuates public policy” and the committee or subcommittee proceedings are, therefore, subject to the OMA.

“I believe we do this to the fullest extent of our ability and to comply completely with the law,” Rosenthal said. The board has consulted with lawyers in the past, she added, and will do that again if the need arises. “I hope that will put to rest people’s concern about the Open Meetings Act.”

Response to OMA Questions: Public Commentary

At the end of the meeting, David Diephuis addressed the board, saying he appreciated Rosenthal’s strong statement regarding the state’s Open Meetings Act. He agreed that sometimes people nitpick. But he noted that Rosenthal had addressed the requirements of the act, which the board certainly is following, he said. “My question to you is what is allowed under the act. I believe this community wants more than what’s required.” The OMA doesn’t limit the board, he said. It would allow the AADL board meetings to be filmed, for example, and it would allow the public to attend committee meetings. “That, I think, is the true spirit of the Open Meetings Act.” Allowing the public to attend committee meetings and posting videos of board meetings online would be great ways to increase communication with the community, Diephuis said.

Diephuis pointed out that the AADL’s own philosophy statement states that the library “accepts the responsibility of serving the entire district by providing free and open access to its facilities and services for all members of the community.” Free and open access is a wonderful, worthy value, he said. “I hope that you will embrace that value, and look to open up some of your committee meetings and provide video of this board meeting.”

Public Commentary

Three people spoke during public commentary at the start of the May 6 meeting.

Don Salberg said he wanted to revisit the library’s failed bond referendum. He said he had posed questions during public commentary at AADL’s March 18, 2013 meeting and subsequently received answers. Now he wanted to respond to those answers. He had examined the 2007 report by Providence Associates, which had highlighted needs of the library. One of the premises, he said, was an expectation that there would be a 16% growth in Ann Arbor’s population by 2020. Last year, the Southeast Michigan Council of Governments (SEMCOG) published a forecast of only 6.1% growth in Ann Arbor by 2040, he said. “There’s quite a difference here, and the incremental years have changed the prospects of population growth – this should be considered.” There’s a much less urgent need, he said.

David Kloiber, a junior at Skyline High, was hired by the Protect Our Libraries PAC to videotape the May 6 AADL board meeting.

At the time of the Providence report, there was also a question about how the Internet would impact library services, Salberg said. Since then, when Luckenbach|Ziegelman Architects was hired by the library to develop schematics for a new downtown building, Salberg said the architects stated that very few people were coming to the library to do research because they were using the Internet to do that work.

Salberg said he had attended informational meetings that the library had held last year about the need for a new downtown building, and at those meetings at least three major deficiencies in the existing building had been cited.

One deficiency was that it didn’t have a large enough meeting facility, and that the current basement multi-purpose room only holds about 100 people. When there are large events with overflow capacity, people are directed to another room to watch the event on closed video. But he said he was told there were only 13 instances of this happening last year. “That doesn’t seem like a great demand for additional space by itself,” he said. Although it would be nice to have an auditorium with comfortable seating, there doesn’t seem to be urgency for that. Other issues that were cited about the downtown building included the elevators and outdated electrical facilities, but Salberg felt those issues didn’t present major problems and could be addressed without a new building.

Salberg noted that 55% of the voters had rejected the bond proposal for a new downtown library in November of 2012. One way to look at that is to say that 55% of the voters like the library as it is, he said. There has been some suggestion that the referendum was defeated because voters weren’t property informed, he noted. “I disagree. I think we have an intelligent population and I think they understood what was going on.”

Bob Rorke addressed the board, saying he’d been hired in January by the Protect Our Libraries political action committee to review AADL’s operations and to suggest alternatives for the system’s future direction. From his review, he has concluded that the AADL is well-funded and well-managed. He praised the library staff and management, noting that services have been maintained despite a “substantial” loss in revenues because of the economy.

Rorke said he’s confident of these findings, but less clear about the future direction of AADL. The administration has been proactive in offering new direction and services as the basic functions of lending material and providing reference resources become outmoded, he said. Those new services include podcasts, gaming, ESL programs, and lending of specialized materials like musical instruments and telescopes.

“My question, though, is: Are these initiatives viable in the long term?” Rorke said there seems to be no tactical plan or document that describes why these particular services are being offered, and what their impact has been. Lots of questions remain unanswered, he said, including what the future potential demand for these services will be, what resources are needed to provide these services, and whether there is competition from either new technology or other community organizations.

In November of 2012, voters “resoundingly” defeated a bond issue for a new downtown library, Rorke noted. “Some have suggested that the voters didn’t appreciate the library, and some have questioned whether the communication to the public was adequate. I don’t believe either of these arguments are valid.” Rather, the initiative failed because “the public couldn’t understand how we got from today’s library to the library of the future,” he said. “And after four months of study, I don’t see it either.”

Onna Solomon, left, talks with AADL trustee Barbara Murphy following the library board’s May 6 meeting. Solomon had addressed the board during public commentary.

There is speculation that the library’s future role might be in local media production, local archiving or a public meeting space, but there’s no detailed plan or evidence to support that vision, he said. Rorke said he’s sure the board and administration will challenge this conclusion. Although a vision has been articulated, he concluded, “this is the challenge for the Ann Arbor District Library – to present a factual, realistic plan to support the vision.”

Onna Solomon introduced herself as a new mom with a five-month-old son. She had voted in favor of a new downtown library, and believes that parts of what it represents are very important to the future of Ann Arbor. One of the reasons she settled here is because of the library system. It’s an amazing resource for young families – she uses the library all the time. She also praised AADL’s storytime events, saying it was a wonderful way to meet people that you wouldn’t necessarily meet in your neighborhood. The point of having a larger meeting space is to have a community center that could promote new opportunities. As she raises the next generation of Ann Arborites, Solomon said, “I really see the value in expanding and in changing [the building] in order to meet new needs.”

Present: Nancy Kaplan, Margaret Leary, Barbara Murphy, Jan Barney Newman, Prue Rosenthal, Ed Surovell (left early). Also AADL director Josie Parker.

Absent: Rebecca Head.

Next meeting: Monday, June 17, 2013 at 7 p.m. in the fourth-floor conference room of the downtown library, 343 S. Fifth Ave. Traverwood branch, 3333 Traverwood Drive (at the intersection with Huron Parkway). [Check Chronicle event listing to confirm date]

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Friends of AADL operates a used bookstore in the lower level of AADL’s downtown branch at 343 S. Fifth Ave. Proceeds of the store – about $90,000 annually – are given to the library. [.pdf of current FAADL space-use agreement]

This brief was filed from the fourth-floor conference room of the downtown library at 343 S. Fifth. A more detailed report will follow: [link]

Ingrid Sheldon, a member of the Our New Downtown Library campaign committee, reviews her notes before speaking during public commentary at the Nov. 19 meeting of the Ann Arbor District Library board. (Photos by the writer.)

Two people spoke during public commentary, directly addressing the issue of the downtown building at 343 S. Fifth Ave. Ingrid Sheldon – representing the Our New Downtown Library committee, which had campaigned in support of the bond proposal – told the board that committee members were disappointed but willing to continue supporting the library however they can. Other committee members in attendance included Betsy Jackson and Donald Harrison.

Also addressing the board was Lyn Davidge, who had run for a seat on the library board but had not been elected. During her campaign she had advocated for renovation of the downtown building, not new construction. She volunteered to serve on any citizen advisory group that she hoped the board would form soon, to give input on the building’s future. Davidge also urged the board to add a public commentary slot at the end of their monthly meetings – because she felt it would encourage more participation.

There was scant discussion among board members about the Nov. 6 outcome or next steps for dealing with the downtown building. In a brief report to the board, Prue Rosenthal – chair of the board’s special facilities committee – indicated that the committee members hadn’t yet made any decisions or had any substantive discussions about what to do next. There was no discussion about the possibility of forming an advisory committee.

In other action, the Nov. 19 meeting included an audit report by the accounting firm Rehmann for AADL’s 2011-2012 fiscal year, which ended June 30. The audit was clean, and included a recommendation to start conducting periodic inventories of “moveable capital assets” – items like furniture and fixtures.

During her director’s report, Josie Parker highlighted a financial concern that is outside of AADL’s control: The possible elimination of the state’s personal property tax. PPT legislation will likely be handled in the state legislature’s lame duck session. If the PPT is eliminated and no replacement revenue is provided, the library would lose about $630,000 annually in revenues, Parker said. The library’s annual budget is roughly $12 million.

Parker also related positive news. Again this year, AADL has been ranked with five stars by the Library Journal – the highest ranking awarded by the journal for library use in a community. AADL is the only library system in Michigan that achieved that level. In its category – libraries with budgets between $10 million to $29.99 million – AADL ranked fourth nationwide. 

Public Commentary

Two people spoke during public commentary at the start of the meeting.

Ingrid Sheldon told the board that she was representing Ellie Serras and the rest of the Our New Downtown Library committee, which had campaigned in support of the $65 million bond proposal – she noted that some of the other committee members were attending the AADL meeting too. The committee worked hard and was very disappointed that they weren’t able to convince the majority of voters to invest in a new library, she said. However, they were excited that so many people started talking about this core community asset. No one had negative things to say about the library – everyone loves it, Sheldon said. The Ann Arbor library system has a national reputation, Sheldon observed, but perhaps the community takes that for granted.

She reported on a recent visit she’d made to the Traverwood branch, and the activities she saw there. People were tutoring, working on computers, reading – “someone was even Skyping to China,” she said. The campaign committee had not been able to convey that this kind of demand for services exists at the downtown library too, she said. The downtown library is the “trunk from which the branches draw their nutrients.”

The infrastructure needs for the building haven’t gone away, Sheldon continued, and now the board has heard community input. She wanted the board to know that the committee is ready to help make the library become more than it already is. She thanked them for their vision of making the library an institution to enhance learning for all.

Lyn Davidge, who had run in the Nov. 6 general election for a seat on the library board but was not elected, began by saying “Sorry, ladies!” [The one male board member, Ed Surovell, was absent.] She said she was sure they thought they would be rid of her after the election, but she was back. She observed that her campaign to get people to attend AADL board meetings appeared to be working. She felt she needed to set an example by speaking during public commentary.

Even though she won’t have the opportunity to join the board, Davidge said, she thought her campaign message had resonated with a lot of voters and that she had something to contribute to the ongoing discussion. [Davidge had supported renovating the downtown building rather than constructing a new library.] She wanted to be one of the first people to volunteer to serve on one of the citizen advisory committees that she hoped the board would create soon. She noted that she and board member Nancy Kaplan – and possibly others – had advocated for such committees. As the board selects people to serve in an advisory role, she hoped they would include people from the business community, academia, and others with talent and experience who can provide new options for possible renovation. A lot of details about possible renovation were missing in the pre-election conversation, Davidge said, and she hoped the board and staff would seek advice from knowledgeable engineers, architects and others in the coming months.

Davidge also urged the board to seek more input from the library staff – not just the department heads, but the staff who run the day-to-day operations. She believed that these employees could provide important insights. Davidge concluded by requesting that the board add another opportunity for public commentary at the end of its meetings, so that people could give feedback about board decisions and discussions that had occurred during the meeting. If people could provide immediate feedback to the board, that might encourage more people to attend board meetings. “You never know until you try and I hope you’ll consider trying it.”

Facilities Committee Report

In her report as chair of the board’s special facilities committee, Prue Rosenthal noted that their work will continue to move forward, although she added that they were obviously disappointed in the outcome of the Nov. 6 election, when voters rejected the library’s bond proposal. The committee members are Rosenthal, Nancy Kaplan and Ed Surovell.

Board president Margaret Leary noted that the board had previously voted to amend its charge to the special facilities committee. That change – made at the board’s July 16, 2012 meeting – extended the committee’s work through 2012, and included the charge of recommending “measures needed to maintain the existing building should a bond to replace the downtown facility fail to pass.” The committee had originally been formed in April of 2012.

On Nov. 19, Rosenthal said the committee would be meeting with the “appropriate professionals” and library staff to figure out how best to use the available funding to ensure that the library works as well as it possibly can. The committee hasn’t made any decisions or had any substantive discussions about what to do next, she said.

Kaplan added that board appreciates the community’s input, including ideas and suggestions for how to move forward. The board is listening, she said. Leary echoed those sentiments.

Financial Report

Ken Nieman – AADL associate director of finance, HR and operations – gave a brief financial update to the board. [.pdf of finance report] He described October as a “pretty normal month, as most of them are here.” Through the end of October, the library has received 94.7% of its budgeted tax receipts – or $10.617 million. AADL’s fund balance stood at $7.937 million as of Oct. 31.

Five items were over budget, he said, but are expected to come back in line with budgeted amounts by the end of the fiscal year. Those line items are purchased services (related to an annual payment for Brainfuse, an online tutoring service), communications, software, supplies, and a line item for “other operating expenses.”

Board members had no questions for Nieman about the financial report.

Audit Report: It’s Clean

In reporting from the board’s budget and finance committee, Barbara Murphy said the committee had met earlier in the month with Dave Fisher of the accounting firm Rehmann to review AADL’s audit results. She described it as a very positive meeting.

From left: AADL board members Margaret Leary, Barbara Murphy, and Rebecca Head. Barely visible behind Head is Prue Rosenthal.

Sherry Brubaker, an audit and assurance manager at Rehmann, gave the board an overview of the results later in the Nov. 19 meeting.

The audit gives a clean opinion of AADL’s financial statements for the fiscal year 2011-12, Brubaker said – the same as in recent prior years. The audit also looked at AADL’s internal controls for systems like payroll and cash receipts.

AADL’s fiscal year runs from July 1 through June 30. Total general fund revenues for the year were $11.94 million – about $300,000 less than the previous year. About 91% of revenues ($10.87 million) come from property taxes, Brubaker noted. Total general fund expenses for the year were $11.7 million, leaving a surplus of $236,793 for the year. Expenditures were under budget by about $373,000.

Out of the library’s $8.1 million in combined fund balances, $7.55 million is unassigned and available for spending at the library’s discretion. That amount equates to about 65% of general fund expenditures – representing several months of operating expenses.

The library has about $4.5 million in investments, Brubaker noted. Its cash is invested primarily in short-term certificates of deposit. AADL has no debt. Net assets total $30.96 million.

Brubaker said that during the audit, it was noted that a physical inventory of movable capital assets hadn’t been completed. The firm recommends that such an inventory be conducted every three or four years, she said. That recommendation was discussed with the finance committee, and Brubaker believed that the recommendation would be implemented.

Board president Margaret Leary asked for examples of moveable capital assets. Brubaker replied that it includes assets like furniture and fixtures – items that cost more than $1,000 with an expected life greater than two years.

Outcome: Without further discussion, the board unanimously voted to accept the 2011-12 audit.

Rehmann provided only print copies of its audit to AADL, which in turn provided print and scanned versions to The Chronicle. [.pdf of scanned audit] The Chronicle converted the document to a searchable text version using optical character recognition (OCR), though the process left the text with several scanos. [.pdf of OCR audit]

Director’s Report

AADL director Josie Parker reported that personal property tax (PPT) legislation is headed to the House Tax Policy Committee later this month and will likely be handled in the state legislature’s lame duck session. The Michigan Library Association will continue to lobby for a revenue replacement, she said.

If the PPT is eliminated, the library would lose about $630,000 annually in revenues, Parker said. Proposals to find replacement revenues currently would provide only a fraction of that amount, she added. [For more background on this issue, see Chronicle coverage: "Ann Arbor Library Board Briefed on Tax Issue."]

Parker also reported that the library recently had received a $40,000 donation from the Friends of the Ann Arbor District Library, a nonprofit that runs the bookstore in the downtown library’s lower level. Parker read aloud a letter from FAADL treasurer Mary Borkowski, praising the library for its work.

In the final item of her report, Parker announced that AADL had again been ranked with five stars by the Library Journal – for the fifth year. It’s the highest ranking awarded, and AADL is the only library system in Michigan that achieved that level. In its category – libraries with budgets between $10 million to $29.99 million – AADL ranked fourth nationwide.

Parker also congratulated other Michigan libraries that were ranked: Kent District Library in Comstock Park, Bloomfield Township Public Library, and Plymouth District Library. Those libraries received three-star rankings.

These rankings aren’t about how much money is spent or how many people the library employs, Parker said – it’s about how well the libraries are utilized in the community. Per-capita metrics include circulation, visits, program attendance, and public Internet terminal use.

Parker told the board that the public wouldn’t use the library as much as they do unless there were mechanisms in place to facilitate it. She pointed to a combination of facilities and their design, hours of operation, and the opportunity for the public to give feedback in a variety of ways about the kinds of services and programs they want, such as self-checkout, online renewal, and no limits on the amount of items that can be checked out. Unlike many libraries, Parker said, AADL’s philosophy is that it’s a sign of success when a lot of the collection is being used. The goal is to make the library as easy to use as possible, and there are policies to encourage that.

For the 220 people who work at AADL, these policies and procedures are normal and often goes unremarked, Parker said. But in fact it is remarkable, and she wanted to thank all of the employees for everything they did.

Her remarks were followed by applause from the board and others attending the meeting. Board president Margaret Leary noted that Parker’s motto is “Be generous,” and that’s exemplified by AADL’s policies, Leary said. Users of the library can affect those policies in very direct ways by telling the library staff what they want, she said.

“And they do tell you in Ann Arbor,” Parker quipped.

Present: Rebecca Head, Nancy Kaplan, Margaret Leary, Barbara Murphy, Jan Barney Newman, Prue Rosenthal. Also AADL director Josie Parker.

Absent: Ed Surovell.

Next meeting: Monday, Dec. 17, 2012 at 7 p.m. in the fourth-floor conference room of the downtown library, 343 S. Fifth Ave. [Check Chronicle event listing to confirm date]

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Looking down and to the north from the fourth floor of the Ann Arbor District Library downtown building, overlooking the city-owned underground parking structure being built by the Ann Arbor Downtown Development Authority. The black area in the foreground will be the small road called Library Lane, running between Fifth Avenue and Division. (Photos by the writer.)

In three separate, unanimous votes, the board approved the $12.183 million budget, set a millage rate at 1.55 mills – unchanged from the current rate – and designated the budget as a line-item budget with a policy for disbursements. There were no amendments, and minimal discussion. No one attended a public hearing on the budget.

Several trustees noted that the millage rate is below the 1.92 mills that the district is authorized to levy. If set at that higher rate, the library would see an additional $1.6 million in property tax revenues. The lower rate has been in place since fiscal 2009-10.

Monday’s meeting also included a report on the performance evaluation of AADL director Josie Parker, which was overwhelmingly positive. Parker’s salary will remain unchanged at $143,114.

Board president Margaret Leary read aloud a letter to Parker that praised her accomplishments, and highlighted an upcoming challenge: “The Ann Arbor District Library has increasingly been central to our community and its growth and prosperity. Now AADL has to decide whether its downtown facility is up to providing what the community deserves.”

The reference to a downtown facility reflects a decision by the board and top staff to resume exploring the possibility of a new building, in place of the current four-story structure at 343 S. Fifth Ave. A recent survey commissioned by AADL – and presented to the board at its April 16, 2012 meeting – indicates voter support for a tax increase to pay for major renovations or reconstruction of that building.

In another action item at Monday’s meeting, the board approved a one-year extension to the space-use agreement with Friends of the Ann Arbor District Library (FAADL). The nonprofit operates a used bookstore in the lower level of AADL’s downtown building. Proceeds of the store – about $90,000 annually – are given to the library.

Most of the board’s questions and discussion at the meeting related to a non-action item brought up during Parker’s report on the recent Vision 2012 conference, which drew 400 people from across Michigan and nearby states. The event featured three dozen exhibitors of products and services for the blind and visually impaired. It was hosted by AADL, which administers the Washtenaw Library for the Blind and Physically Disabled. Ed Surovell speculated that there might be an opportunity to grow the event even more.

AADL 2012-13 Budget

The board considered three resolutions related to the $12.183 million budget for fiscal year 2012-13, which runs from July 1, 2012 through June 30, 2013.

Near the start of Monday’s meeting, the board held a public hearing on the budget to seek input, but no one showed up to comment.

A draft budget had been presented at the board’s April 16, 2012 meeting. At that time, the budget had been developed based on a 1% increase in projected tax revenues. That projected increase was subsequently lowered to 0.4% following the April 18 release of Washtenaw County’s equalization report, which is the basis for determining taxable value of property in the county, and in turn indicates how much tax revenue will be collected by local taxing entities.

The final budget projects an estimated $11.132 million in tax revenues – or about $71,000 less than the draft budget had projected. In addition to property taxes, other revenues come from library fines and fees, state aid and fines, interest, non-resident fees and grants.

From left: Administrative assistant Karen Wilson gives documents to AADL board president Margaret Leary to sign after the May 21 meeting.

On the expenditure side, the highest category is salaries and wages, at $5.8 million – an increase from $5.67 million this year. Employee benefits are budgeted to increase 6% from $1.476 million this year to $1.565 million in the next fiscal year. In part, that reflects an increase in the amount that AADL must contribute to the Michigan Public School Employees Retirement System (MPSERS) – from 24.46% this year to 27.37%. The budget also includes a 3% merit raise pool for employees. In recent years, there has been no allocation for merit pay increases. [.pdf of 2012-13 budget summary]

AADL director Josie Parker commented that this is the first time in three years that the library has been able to offer merit raises, and she was pleased that staff who deserve raises would be able to receive them. The library hasn’t faltered in its accomplishments in recent years, she said, and the staff have stepped up and worked hard. Parker said she was grateful, and wanted to thank them publicly.

Outcome: The board unanimously approved the 2012-13 budget.

AADL 2012-13 Budget: Millage Rate

In a separate vote, the board was asked to set a millage rate of 1.55 mills, unchanged from this year. One mill equals $1 for every $1,000 of a property’s taxable value.

Rebecca Head noted that the millage rate is below the 1.92 mills that the district is authorized to levy. That reflects the board’s conservative nature, she said, adding that she appreciated the work of AADL director Josie Parker and Ken Nieman, AADL associate director of finance, HR and operations.

Prue Rosenthal asked how much additional revenues the 1.92 mills would raise. Nieman replied that if the full millage were levied, it would bring in about $1.6 million more in revenues.

Ed Surovell noted that the 1.55 mills is lower than what the library has levied in the past. As recently as 2008-09, the library had levied the full amount. The rate was lowered to 1.55 mills in 2009-10 and has stayed at that rate. From The Chronicle’s report of the May 18, 2009 AADL board meeting:

In the past they’ve levied 1.92 mills but have been operating on 1.55 mills – the difference was set aside and used to pay for building projects, such as the Traverwood branch. Barbara Murphy noted that when she first joined the board, AADL had been operating at 1.65 mills. She said that when Parker and her staff came on board seven years ago, they managed to lower the operating costs while improving service, and that they should be commended for that.

Surovell called it great progress that AADL was levying a lower amount. Jan Barney Newman said it was especially impressive, in light of everything the library has been able to accomplish.

Outcome: Board members unanimously set the millage rate at 1.55 mills.

AADL 2012-13 Budget: Line Item

A third resolution related to the 2012-13 budget designated it as a line-item budget and set a policy for disbursements. [.pdf of line-item/disbursements resolution]

There was no discussion on this item.

Outcome: The board voted unanimously to set a line-item budget and policy for disbursements.

Financial Report

Ken Nieman, AADL associate director of finance, HR and operations, gave a brief financial report for the month of April. At the end of the month, the library had an unrestricted cash balance of $9.7 million, and has received nearly 98% of its budgeted tax receipts for the fiscal year, which ends June 30, 2012.

Two items that are currently over budget – materials and circulation supplies – are expected to come back in line by the end of the fiscal year, Nieman said. [The report indicates that to date, materials are $4,741 over budget, while circulation supplies are over budget by $2,614.][.pdf of financial report]

Neiman said the fund balance of $8.17 million is “pretty healthy” heading into the next fiscal year.

For the current fiscal year, the library finance staff is projecting a surplus of $292,025.

The board had no questions or comments on the financial report.

Director’s Evaluation

At the May 21 meeting, board members gave their annual evaluation to AADL director Josie Parker, which they had discussed with her during an executive session at the start of the meeting. It was overwhelmingly positive.

Board president Margaret Leary read aloud a two-page letter to Parker that had been vetted by all board members. [.pdf of evaluation letter] The letter states that Parker’s salary will remain unchanged at $143,114 and that the board believes her salary to be equitable with comparable positions.

The letter describes Parker’s performance as excellent, and lists several areas of accomplishment, including the attraction and retention of top talent, consistency in presenting a balanced budget, and creativity in providing new services. The letter also points to challenges ahead.

From the letter:

We are aware that AADL’s community relations efforts have succeeded in creating demand beyond what our existing facilities can support. The big challenge to all of us in the coming year – and the biggest challenge for you – is to lead the effort to determine the best path for ensuring that AADL lives up to what our community expects, in all regards. The coming year will present new demands that are not completely foreseeable. Ann Arbor is a special community, founded and built on learning and information. The Ann Arbor District Library has increasingly been central to our community and its growth and prosperity. Now AADL has to decide whether its downtown facility is up to providing what the community deserves.

The reference to a downtown facility reflects a decision by the board and top staff to explore the possibility of a new building, in place of the current four-story structure at 343 S. Fifth Ave.

AADL director Josie Parker.

A recent survey commissioned by AADL – and presented to the board at its April 16, 2012 meeting – indicates voter support for a tax increase to pay for major renovations or reconstruction of that building.

When Leary finished reading the letter, the board gave Parker a round of applause.

Parker responded by saying that 18-year-olds who are graduating from high school this time of year are typically told to choose a career that they love. ”And I do – I love what I do,” she said. “I could do a lot of things, and I chose to do this.”

Parker noted that she’s held this position for 10 years, and plans to continue. ”There isn’t right now a better place to do it.”

Parker also said she enjoys the people she works with, and that makes a huge difference. She concluded by thanking the board for their support.

Outcome: This was not an action item – no vote was taken.

Friends of the AADL Space-Use Agreement

The board was asked to approve a one-year extension to the space-use agreement with Friends of the Ann Arbor District Library.

Friends of the Ann Arbor District Library (FAADL) is a nonprofit that operates a used bookstore in the lower level of AADL’s downtown branch at 343 S. Fifth Ave. Proceeds of the store – about $90,000 annually – are given to the library. At its May 2011 meeting, the AADL board had also approved a one-year extension to the space use agreement. [.pdf file of FAADL space-use agreement] On Monday, essentially the same agreement was proposed for another year.

There was minimal discussion on this item. Board president Margaret Leary said it was wonderful that Friends are using the space and generating revenues for the library.

Outcome: The board voted unanimously to approve the one-year extension of the space-use agreement with FAADL.

Director’s Report

Most of Josie Parker’s report focused on the May 9 VISIONS 2012 Vendor Fair, held at Washtenaw Community College in partnership with WCC and the Michigan Commission for the Blind. The event featured three dozen exhibitors of products and services for the blind and visually impaired. It was hosted by AADL, which administers the Washtenaw Library for the Blind and Physically Disabled.

AADL board members Ed Surovell and Prue Rosenthal after the May 21 AADL board meeting adjourned.

About 400 people attended from across Michigan, Ohio and Indiana, Parker said. Many came for the opportunity to try out technology and devices in person – exhibitors showcased magnifiers, electronic readers, Braille devices, therapy and service dogs, and other support products and services for the blind and physically disabled.

In addition to vendors, there were four speakers, including Neil Bernstein of the National Library Service for the Blind and Physically Handicapped, and the “AT Guys,” who specialize in assistive technology.

Prue Rosenthal asked if there is anything else like this in southeast Michigan. Parker replied that Wayne County Subregional Library for the Blind and Physically Handicapped will host a vendor fair in October, but it will be much smaller.

Ed Surovell wondered if there would be a benefit for the AADL event to be even bigger. Does anyone gain if it’s marketed more broadly? Parker said there’s no downside to AADL – she wants as many people to come as possible. She noted that most people came with a companion – a person or a dog – to help guide them. There were also volunteers to provide that service at the event, so it gets pretty crowded. If more people attend, a larger venue would be needed, she said.

Parker mentioned one other item in her director’s report – the May 12 It’s All Write! Teen Short Story Writing Contest hosted at the AADL downtown building. The guest speaker was Caitlin Horrocks, who published her first short story collection in 2011 – “This Is Not Your City.” Parker noted that Horrocks had won AADL’s teen short story contest in 1997. This year, 350 submissions were received from teens in grades 6-12. A list of 2012 winners in several categories is posted on the AADL website.

Present: Rebecca Head, Margaret Leary, Jan Barney Newman, Prue Rosenthal, Ed Surovell. Also AADL director Josie Parker.

Absent: Nancy Kaplan, Barbara Murphy.

Next meeting: Monday, June 18, 2012 at 7 p.m. in the library’s fourth floor meeting room, 343 S. Fifth Ave. [confirm date]

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Friends of the Ann Arbor District Library (FAADL) is a nonprofit that operates a used bookstore in the lower level of AADL’s downtown branch at 343 S. Fifth Ave. Proceeds of the store – about $90,000 annually – are given to the library. At its May 2011 meeting, the AADL board approved a one-year extension to the space use agreement. [.pdf file of FAADL space-use agreement] Essentially the same agreement was approved on Monday, for another year.

This brief was filed from the fourth-floor boardroom of the downtown Ann Arbor District Library at 343 S. Fifth Ave. A more detailed report will follow: [link]

A sign directing patrons to the Ann Arbor District Library Friends Book Shop, operated by the nonprofit Friends of the AADL in the lower level of the downtown library, 343 S. Fifth Ave. (Photos by the writer.)

Also on Monday, trustees voted down a proposal to videotape monthly board meetings for broadcast. Nancy Kaplan raised the issue at last month’s meeting, and brought forward a formal resolution this month. It was defeated on a 2-4 vote, with support only from Kaplan and Barbara Murphy. No trustees spoke about their reasons for voting against it.

Last month, library staff cited limited resources and quality control as reasons for not videotaping the public meetings, which typically last less than an hour. The governing bodies of most public entities that receive tax dollars from Ann Arbor residents videotape their meetings. Besides the library, the few governing bodies that do not videotape their meetings are the University of Michigan board of regents and Washtenaw Community College board of trustees.

In other action, board chair Margaret Leary reported on the board’s annual evaluation of AADL director Josie Parker. Leary read aloud a letter to Parker that effusively praised her leadership and the library’s success, but noted that because of economic conditions, she would not be receiving a raise in the coming year.

Trustees also had praise for the nonprofit Friends of the Ann Arbor District Library, and unanimously authorized a one-year extension on the space use agreement that allows FAADL to operate its bookstore in the downtown library’s lower level. Proceeds from the store support the library.

2011-12 Budget and Financial Update

The board passed three resolutions related to the budget at Monday’s meeting, in a series of unanimous votes with little discussion. No one spoke during a public hearing on the proposed fiscal year 2011-12 budget, beginning July 1, 2011. [pdf file of FY2011-12 budget]

Though the board is allowed to levy up to 1.92 mills, the $12.034 million budget is based on tax revenues from a 1.55 mill levy, which the board authorized in a separate vote. [In 2009, the board had lowered its millage rate from 1.92 mills to the current rate of 1.55 mills. One mill equals $1 for every $1,000 of a property’s state equalized value, or SEV.] A third resolution adopted the budget as a line item budget and set a policy on disbursements, which the board passes annually. All single disbursements over $28,000 must receive board approval.

Major expenditures include $5.684 million for salaries and wages, $1.51 million for employee benefits and $1.85 million for materials. The $12.034 million budget represents a 2% drop from the current fiscal year’s budget of $12.299 million.

At the board’s April 25, 2011 meeting, AADL staff were still working out details of resolving a roughly $40,000 deficit for the year. On Monday, Ken Nieman, associate director of finance, human resources and operations, told the board staff had decided to take that amount out of employment-related expenditures, which he said typically come in under budget. No layoffs or cuts to salaries or benefits were involved.

Outcome: The AADL board unanimously passed three resolutions to adopt the 2011-12 budget and set the millage rate at 1.55 mills.

Earlier in the meeting, Nieman made a brief report on the year-to-date finances for fiscal 2010-11. He noted that four line items were still over budget – programming, maintenance, legal and employee benefits. While programming and maintenance were expected to fall back in line by June 30, the end of the fiscal year, Nieman said it now seemed likely that both legal expenses and employee benefits would be over budget.

Extra expenses for employee benefits are related to increased health care costs – year to date, that line item is $49,901 over budget.

Legal expenses relate to four issues: Research on tax increment financing (TIF) for both the Washtenaw Avenue corridor project and the Ann Arbor Downtown Development Authority, labor negotiations, and preparation of an amicus brief in a Herrick District Library lawsuit against the Library of Michigan. Year to date, legal expenses are $12,386 over budget.

Nieman also reported that AADL received an additional $15,000 in state aid – AADL had received $30,000 in March, and expects to get additional state funds by fiscal year’s end. [.pdf of April 2011 financial report]

Janitorial Contracts

The board was asked to approve new contracts for janitorial services at the district’s five library buildings. Current contracts – with Pioneer Janitorial and ServiceMaster – expire on June 30.

Ken Nieman, associate director of finance, human resources and operations, described how staff had handled the contracting process. They had sent out a request for proposals to cover services for the next three years, and had asked that bids be given separately for each of the five buildings. They received responses from five companies.

After checking references and evaluating the bids, Nieman said staff were recommending one-year contracts – with options to renew for two additional years – with Pioneer Janitorial and R.N.A. Janitorial. Pioneer would handle the downtown building ($90,483 for year 1, $92,303 for year 2 and $94,149 for year 3); West branch ($10,501 for year 1, $11,026 for year 2 and $11,467 for year 3); and the Pittsfield branch ($21,021 for year 1, $21,452 for year 2 and $21,774 for year 3). R.N.A. would service Traverwood ($16,392 for all three years) and Mallets ($16,908 for all three years).

Outcome: The board unanimously approved contracts for janitorial services with Pioneer Janitorial and R.N.A. Janitorial.

Broadcasting AADL Meetings

At Monday’s meeting the board was asked to consider a resolution to begin videotaping its meetings for broadcast. Nancy Kaplan, the board’s newest member, had proposed the idea at the board’s April 25, 2011 meeting. At that same meeting, AADL staff told the board that limited resources and quality control issues were the reasons why they hadn’t chosen to videotape the meetings to date.

From left: AADL board members Barbara Murphy, Nancy Kaplan and Prue Rosenthal. Kaplan presented a resolution to broadcast board meetings, which garnered votes only from her and Murphy.

Before the vote, Kaplan reminded the board of her reasons for requesting that meetings be broadcast. She said she understood why the library staff had chosen not to do it in the past, but she saw it as a service to the community. With all the changes that will be coming at the library – including new services like electronic books and digital music – it’s a nice way for the community to hear about these things, she said. And as far as she knew, all boards that are getting tax revenue from the community are recorded for broadcast. [Last year, the Ann Arbor Transportation Authority began broadcasting its meetings from the same room where the AADL board holds its monthly meetings. The year before that, the Ann Arbor Downtown Development Authority began video taping its meetings. Videotaped meetings are available online through Community Television Network's Video on Demand service. ]

“For those reasons, I see it as a public service and hope you’ll support it,” Kaplan said.

No other board members commented on the issue.

Outcome: The resolution was defeated by a 2-4 vote, with support only from Nancy Kaplan and Barbara Murphy. Trustees Rebecca Head, Jan Barney Newman, Margaret Leary and Prue Rosenthal voted against it. Ed Surovell was absent.

Friends of the AADL Space Use Agreement

Another item on the board’s agenda was a resolution for a one-year extension on the space use agreement with the nonprofit Friends of the Ann Arbor District Library, which operates a used bookstore in the lower level of AADL’s downtown branch. Proceeds from the store – $100,000 this year alone – benefit the library. The previous agreement, originally signed in 2009, was set to expire on May 18. [.pdf file of FAADL space use agreement]

Several board members praised the FAADL. Board president Margaret Leary said she attended the nonprofit’s luncheon last week honoring volunteers, and that it was great to see so many loyal long-time and new volunteers.

Jan Barney Newman mentioned that FAADL will have a booth at the “nonprofit alley” during this year’s Ann Arbor art fairs, which run from July 20-23. The cost of the booth is being paid for by an anonymous donor, she said, and FAADL volunteers will be promoting the library’s summer reading program. She said the nonprofit is determined to increase its fundraising and membership. “It is a joy to see what they’ve accomplished and what they continue to have ambitions for,” Newman said.

AADL director Josie Parker reminded the board that the Friends would be holding their annual meeting on June 5 at the building where The Ann Arbor News archives are stored, as an incentive for members to attend. [In January of 2010, the library took possession of the archives of The News, which closed in July 2009. See Chronicle coverage: "Library Nears Deal on Newspaper Archives." AADL staff is processing the more than one million items in that collection, now stored in an office park on Green Road.]

Parker also noted that FAADL would be holding a membership drive, coordinating with the library’s summer reading program. She said it’s the first time in her memory that the nonprofit has held such a drive.

In response to a query from Nancy Kaplan, Parker said the library would be adding a link on its “Who We Are” page directly to the FAADL website. The link that already exists on the library’s “Support AADL” page will remain, she said.

Outcome: The board unanimously approved a one-year extension on the space use agreement with the nonprofit Friends of the Ann Arbor District Library.

Director’s Report

During Monday’s meeting, AADL director Josie Parker made some additions to her written director’s report. [.pdf file of May 2011 director's report] She thanked board members Nancy Kaplan and Ed Surovell for attending the May 5 opening reception of the Ben Franklin exhibit that’s currently on display at AADL’s downtown location. She also noted that the library has received a lot of good press – even internationally – regarding its deal with the digital music publisher Magnatune. The board had been briefed on that deal at its April 25, 2011 meeting.

Parker also reported that materials for AADL’s 2010 “Make It Happen” summer reading program had won best of show from the American Library Association. The work was designed by Heidi Woodward Sheffield of The Exclamation Point. In addition, AADL won three honorable mentions in its budget category, including an award for a Reading to Me CD that’s distributed to families with infants, featuring stories and music performed by AADL staff. Parker gave credit to Sheffield as well as Tim Grimes, the district’s community relations and marketing manager, and Eli Neiburger, AADL’s associate director of IT and product development, and their staffs.

Director’s Evaluation

The board had met in executive session earlier in the evening to discuss Josie Parker’s annual evaluation. During the public portion of the meeting, board president Margaret Leary said it was a real pleasure and honor to read the letter that she had delivered to Parker, on behalf of the board. [.pdf of evaluation letter]

From left: AADL trustee Jan Barney Newman, board president Margaret Leary, and AADL director Josie Parker.

Leary read the two-page letter aloud, praising Parker’s financial management skills, administrative capabilities, and leadership within the AADL, the community and the library profession at the state, national and international levels. The letter refers to Parker as “the perfect director for AADL,” but notes that despite her superb work, there will be no change in her compensation. “Your work has earned a raise,” the letter states, “but the economic situation does not allow one.”

Parker earns $143,115 – her salary has been unchanged since 2008. Every year since then she has recommended that the board keep her salary at that level, rather than award a raise.

In responding to her evaluation, Parker said it was important to remember that one person does not run an organization like AADL – there were many who contribute to its success. All staff are being evaluated at this time of year, she said, and it’s one of her pleasures to get to read the documentation for those evaluations, including employees’ self-evaluations. Staff members are proud of their work, she said. They help keep the library safe and clean, she said, doing things like clearing the sidewalk and keeping the library open during one of the worst winters.

Parker said that some of the most demanding jobs, other than janitorial, are handled by people at the information desks and circulation desks – you never know who’ll walk up or what they’ll request, she noted, but you have to respond up to AADL’s standards. Many of these employees are people that aren’t well-known, she said, but their work is essential to the library.

Parker also said that after nine years in this job, she never takes the work of elected officials for granted – she admires and respects it, she said, and is grateful to the board for all they do.

Present: Rebecca Head, Nancy Kaplan, Margaret Leary, Barbara Murphy, Jan Barney Newman, Prue Rosenthal. Also AADL director Josie Parker.

Absent: Ed Surovell

Next meeting: Monday, June 20, 2011 at 7 p.m. in the library’s fourth floor meeting room, 343 S. Fifth Ave. [confirm date]

This brief was filed from the AADL board meeting at the downtown library on South Fifth Avenue. A more detailed report will follow: [link]

Nancy Kaplan, the newest Ann Arbor District Library board member, is introducing a proposal to videotape library board meetings for public broadcast. The board is expected to consider a resolution on that issue at its May 16 meeting. (Photos by the writer.)

The deal – which is getting national attention from library professionals – gives patrons unlimited access to a downloadable catalog of about 12,000 tracks in a wide range of genres. Though it doesn’t include songs by popular artists on major record labels, AADL director Josie Parker told the board that the selection should appeal to a community like Ann Arbor, which values alternative music.

The library is looking for other ways to increase its digital offerings of audiobooks, films, music, and free or open eBooks. Possibilities include tapping collections like Project Gutenberg, which has about 50,000 titles, and working with local authors, musicians and filmmakers who might be interested in making their work accessible to library patrons.

Also at Monday’s meeting, board member Nancy Kaplan advocated for televising the board’s monthly meetings, and said she’d like to bring a formal proposal to the board for a vote on May 16. Other groups like the Ann Arbor Public Schools board and the Ann Arbor Transportation Authority currently hold their meetings in the same location as the AADL board – the fourth floor conference room of the AADL’s downtown building on South Fifth Avenue. AAPS and AATA meetings are televised by Community Television Network. Parker agreed that there are benefits to televising the meetings, but cited issues of quality and control as reasons why they haven’t decided to do that yet.

In other business, board members got a preview of the 2011-12 budget, for the fiscal year starting July 1, 2011. They plan to keep the millage level unchanged – AADL levies 1.55 mills, not its maximum allowable 1.92 mills. There will be no layoffs, but no pay increases. The board will take a formal vote to approve the final budget at their May 16 meeting, which will also include a public hearing on the issue.

And in a discussion about the nonprofit Friends of the Ann Arbor District Library, Parker asked the board to consider putting a direct link to that organization’s website on the front page of the AADL website. The move would be “a pretty public vote of confidence for them, and recognition for everything they’ve done,” she said. The AADL had distanced itself from the Friends several years ago in the wake of financial oversight issues that have since been resolved. The group operates a used bookstore in the lower level of AADL’s downtown branch, with proceeds – $100,000 this year alone – benefiting the library.

Videotaping AADL Board Meetings

As an item for discussion, Nancy Kaplan – the board’s newest member, who was first elected in November 2010 – brought forward a proposal to videotape the monthly AADL library board meetings. She cited a list of benefits, such as enhancing the library’s outreach efforts and providing another way for the public to get information about AADL, its staff and programs. As an example, she mentioned the report by director Josie Parker at last month’s board meeting regarding Parker’s work with the Digital Public Library of America, and the presentation on eBooks that was made at the April board meeting.

Viewers would also learn, along with the board, about the challenges and changes happening at the library, Kaplan said, especially as it shifts to providing more digital services. Those changes might include delivery of services, the physical structure of the library, and the changing financial environment, she said. Kaplan asked the board to consider televising their meetings, saying that she believed it would cost only $50 per month, if even that much.

[By way of background, Community Television Network (CTN) – a unit of the city of Ann Arbor – records and televises a wide variety of public meetings, including several that are held in the same boardroom as the library board meetings – on the fourth floor of the downtown AADL building. Meetings that are currently recorded by CTN in that room include the Ann Arbor Public Schools board, the Ann Arbor Transportation Authority board, and the Ann Arbor Public Market Commission.]

Parker told the board that she couldn’t argue about the benefits. But she asked Tim Grimes, the district’s community relations and marketing manager, to describe how the library allocates its resources, and why they’ve made the decision in the past not to videotape board meetings.

Grimes said his staff includes two part-time employees who videotape and provide technical support for AADL events. He said they did have an initial conversation with CTN, but were told that because the library board meetings fall on the same night as Ann Arbor city council meetings, the library board meetings could not be aired live – they’d have to be taped for broadcast at a later date.

He also said if the board did decide to videotape meetings, his staff would do it – because all of the video on the AADL’s website is done in-house.

In giving an overview of the work his department does, Grimes said they film about 6-8 library events each month to post on the AADL’s website. Talks by authors like journalist Cokie Roberts in 2008 and TV producer Chuck Barris in 2007 had been especially popular, he said. Grimes also highlighted talks held at AADL in partnership with groups like the University of Michigan Depression Center and University Musical Society, and which are available in the AADL’s video-on-demand collection. In addition to videotaping events, his staff also does podcasts and provides technical assistance for AADL events, Grimes said.

Grimes noted that they produce an annual report video, which he said includes much of the information that Kaplan described, and features interviews with staff and patrons.

Another thing to consider is that on some board meeting nights, the library has to schedule author events at the same time, Grimes said. He cited as an example the board’s next meeting on May 16, when Sebastian Junger – author of “A Perfect Storm” – will be speaking at the same time in the library’s multi-purpose room at an event they’ll be videotaping. It’s the only night that Junger was available, Grimes said, so they didn’t have any choice about scheduling.

Grimes concluded by noting that he’s worked at the library for 22 years, and has been in his current job for 18 years. Not once, he said, has a member of the public asked to have library board meetings filmed. “I have lots of requests for other things, including Chuck Barris, but never for this.”

Margaret Leary, the board’s chair, posed a hypothetical question: If the library were to produce a video about a topic that might be touched on at a board meeting – like Parker’s presentation last month on the Digital Public Library of America – would it be more in-depth than a 5-10 minute talk? Certainly, Grimes replied, saying that their films are very polished in terms of quality of picture, sound and content.

Leary then asked Parker if she had any additional comments regarding their strategic thinking on this issue. Parker said they hadn’t really considered making films about their own initiatives. They certainly could, she said, but it’s more likely they’d look for partnerships – for example, the University of Michigan’s Google books project might be a way to discuss issues related to digitization and libraries.

More generally, Parker said it wasn’t an issue of cost. Rather, with CTN, the library would have no control over quality or scheduling, she said – and the video wouldn’t be the AADL’s. It would belong to CTN.

Kaplan said it seemed to be the culture of this community to televise public meetings. She noted that more entities – like the Downtown Development Authority and AATA – are moving in that direction. She said she isn’t looking for something perfect, but that with so many changes coming for AADL, it’s important to bring the community along with them. Even though Parker’s presentation last month had been brief, she said, it was also enlightening and informative. Kaplan also thought it would be possible to request that CTN broadcast the meetings at certain times.

At any rate, Kaplan added, these are logistics that can be worked out. What they really need to decide is the concept – do they want to record their meetings for broadcast? If there are concerns, she said, perhaps they could do it on a trial basis.

Kaplan plans to bring a formal resolution on the issue to the board’s May 16 meeting.

Digital Media at the AADL

A discussion at the board’s March 21 meeting – which focused on how digital books are transforming the publishing industry and, in turn, public libraries – prompted AADL director Josie Parker to offer to give the board an overview of the library’s digital offerings at their April meeting. On Monday, Celeste Choate – associate director of services, collections and access – gave a detailed presentation on the range of digital services that AADL provides its patrons.

Digital Media: Overdrive

Choate began by describing some of the services that the library offers for eBooks and audio books – including one that’s been a frustration for both library officials as well as patrons.

Overdrive is a business that provides electronic books to public libraries – AADL accesses this service through its membership in the Midwest Collaborative for Library Services. Because Overdrive is an outside vendor, AADL doesn’t have control over its offerings, Choate told the board. The service also only allows for one user download at a time per item, so there are long waiting lists to check out the most popular material. A common complaint is that people want to get the books more quickly, she said. And once the period of use has expired, the material is automatically erased from your computer.

There are technical constraints as well, Choate said. Overdrive is only compatible with certain equipment, and requires users to first install software on their computer. Later in the meeting she walked the board through the steps required to use Overdrive – a fairly complicated process.

Celeste Choate, AADL's associate director of services, collections and access.

Recently, 700 animated Disney storybooks were added to the Overdrive collection – those allow for simultaneous use, but can only be downloaded to computers, not electronic readers. Overdrive offers about 5,000 eBooks and 4,000 audiobooks, which are compatible with Nook and Sony electronic readers. Users of Kindle will be able to access the service at some point soon, Choate said, although she added that when more patrons start to use the service because they can read the material on their Kindles, wait lists will likely grow even more.

Over the past 12 months, there have been about 16,000 checkouts of Overdrive material.

Parker later noted that AADL hasn’t publicized Overdrive because it’s not a great service. Even when it’s available via Kindle, that won’t change the problems that patrons face when using it, she said.

Digital Media: eBooks for the Blind, Physically Disabled

Working with the National Library Service, AADL offers over 21,000 books and 48 magazine titles via the Braille and Audio Reading Download service, or BARD. This service allows for unlimited, simultaneous downloads, Choate said, and unlike Overdrive material, users can keep permanently whatever they download.

To provide faster access for patrons, AADL has downloaded all 21,000 books and can distribute them quickly on flashdrives, whenever there’s a request. This is a service that’s just been launched, Choate said, and is being coordinated by Terry Soave, AADL’s outreach and neighborhood services manager.

AADL also offers access to a program called BookShare, which provides more than 90,000 books, textbooks, periodicals and other material.

All of these services require that the users be a patron of the Washtenaw Library for the Blind and Physically Disabled, which is managed by AADL.

Digital Media: Tumblebooks

Tumblebooks is designed for visually impaired children, and allows users to download animated storybooks, audio games and other games to their computers. The service offers unlimited access, and last year there were 75,000 book views by library patrons, Choate said. Based on what AADL pays for the service, it costs the library less than a penny per book view, she said.

Digital Media: Magnatune

One of the most promising new digital offerings is available through Magnatune, a digital music publisher. AADL recently negotiated a deal with the firm for about 12,000 songs – or the equivalent of about 1,200 albums, Choate said. The service offers unlimited, simultaneous downloads with no waiting. The Magnatune page on AADL’s website describes it this way, in what appears to be an oblique reference to Overdrive: “You shouldn’t have to jump through 17 flaming hoops in order to access digital content, so we’ve tried to make the process as simple as possible.”

Since launching about three weeks ago, over 11,000 tracks have been downloaded, Choate said.

Parker noted that these are independent artists – you won’t find music by the current hot performers – but there’s a wide variety of genres, from world music and blues to hip hop, classical and alt rock. She said the music is appealing in a community like Ann Arbor, where alternative music is valued.

The AADL doesn’t pay per download – rather, the library paid a $10,000 flat fee in a licensing agreement that runs through June 30, 2012. So the more times the service is used, the lower the cost is per use. It’s a very cost-effective service for the library to provide, Choate said.

Digital Media: Future Plans

The library is looking for ways to increase its digital offerings, Choate said – audiobooks, films, music, and free or open eBooks. One example, she said, is to look at what’s available from Project Gutenberg, which has been compiling a collection of free eBooks and has about 50,000 titles. [The books are free because their copyright has expired.] AADL also hopes to talk with local authors, musicians and filmmakers who might be interested in making their work accessible to library patrons.

AADL has the infrastructure in place to provide these digital services, Choate said. They’re pursuing deals like the one with Magnatune, with fixed costs, unlimited downloads and annual licenses. The library is interested in getting the most use out of its collections, she said, while containing costs – they don’t want to pay per download.

Responding to a board member’s query, Parker said there’s never enough exposure for what the library offers, but that when they launch something like the deal with Magnatune, there’s no shortage of information about it. Social media networks are playing a huge role in spreading the word about AADL’s deal with Magnatune, and earlier in the day, Parker said, they got a call from Library Journal, which is interested in doing an article about the agreement.

People who are only interested in mainstream music – like the kind licensed by Sony – might not be interested in what’s available via Magnatune, Parker said. But it’s not worth it for the library to strike a deal with Sony – it would cost them almost as much as retail.

Margaret Leary, chair of the board, expressed frustration at the relatively limited material available to the general public. Leary is director of the University of Michigan Law Library, and described how easy it is for her – as an academic librarian – to quickly access any of thousands of electronic books in their system, all at no cost to her as a user. She described how she was researching earthworms as an invasive species, and with only a simple search found two books on the subject – the full texts were available to her online, she said. Leary indicated that resources should be equally available for the general public.

Financial Reports: March Update, 2011-12 Budget

The board heard two financial reports on Monday from Ken Nieman, associate director of finance, human resources and operations. He first gave an update on March 2011 financials. The district’s unrestricted cash balance at the end of March was $10.124 million, down from $11 million in February. Its fund balance stood at $7.924 million as of March 31. The district has received 96% of this fiscal year’s tax receipts, or $10.923 million.

Three line items – employee benefits, legal expenses and library programming costs – are over budget, Nieman reported. As he’s noted at previous meetings, the extra expenses for employee benefits – related to increased health care costs – are not likely to come back in line with the budget by year’s end. Year to date, that line item is $50,543 over budget.

The district spent $21,126 in legal expenses during March, compared to a budgeted amount of $6,250. Those costs related to four issues: Research on tax increment financing (TIF) for both the Washtenaw Avenue corridor project and the Ann Arbor Downtown Development Authority, labor negotiations, and preparation of an amicus brief in a Herrick District Library lawsuit against the Library of Michigan. Year to date, legal expenses are $11,609 over budget.

Library programs, which was $6,107 over budget for March, is expected to come back in line with its budgeted amount by year’s end.

Nieman also pointed out that AADL received $30,264 in state aid during March. Because of uncertainties related to the state’s economy, the district had not included any state aid in its current fiscal year budget – that’s been the district’s practice for several years. The payment is the first installment – typically, the state makes two payments of 50% each, he said. Board member Prue Rosenthal asked whether receiving this first payment means they’ll likely get another $30,000 from the state. Nieman said he thinks so: “We’re as certain as we can be about that.” [.pdf file of March 2011 finance report]

Financial Reports: 2011-12 Budget

Later in the meeting, Nieman returned to the podium to give a briefing on the proposed 2011-12 budget, which the board will vote on at its May 16 meeting. Barbara Murphy, chair of the board’s finance committee, said the committee discussed the budget with staff earlier this month. “It’s another tight budget,” she said. [.pdf file of 2011-12 AADL draft budget]

Nieman began by noting that the budget had been built on the assumption that tax revenues would drop by 3%. However, on April 21, the county’s equalization department released its report on taxable values for jurisdictions in Washtenaw County. [See Chronicle coverage: "Washtenaw County's Taxable Value Falls"] At that point, they learned that AADL’s tax revenues would drop by only 1.7%. “That’s good news,” Nieman said. “We’d always like it to go up, but it’s better than we were predicting.”

In a follow-up phone conversation with The Chronicle, Nieman said the budget presented on May 16 will be revised to reflect those higher-than-expected revenues. Revenues for FY2011-12 are now expected to total $12.034 million, rather than the $11.887 million indicated in the draft budget. The bulk of revenues in the budget – $11.092 million – are from tax receipts.

On Monday, Nieman told the board there will be no layoffs, no pay cuts, and the library’s hours and service levels will remain unaffected – patrons won’t notice any changes. The draft budget shows a $186,000 deficit, he said, but given the change in anticipated tax revenues, that deficit is now closer to $40,o00.

Nieman later told The Chronicle that AADL hopes to shift its union employees over to a similar health insurance plan that non-union workers were shifted to last October, to cut costs. About 50 of the roughly 250 AADL workers are represented by unions. Several line item expenses are lower in the FY2011-12 budget, including custodial, purchased services, utilities, and grants and memorial expenses. The budget includes an $18,000 increase in the line item for repair and maintenance, to $283,000.

For some employees, the AADL will see an increase in the amount it must contribute to the Michigan Public School Employees Retirement System (MPSERS) – from 20.66% this year to 24.47%. Nieman noted that only 18 AADL employees are part of this state-mandated retirement program – they are people who were hired when the library was part of the Ann Arbor Public Schools system, before AADL was spun off as an independent entity in 1996. [For a primer on MPSERS funding, see Chronicle coverage of a February 2010 Ann Arbor Public Schools study session.]

On Monday, Nieman told the board that the administration will be working to present a balanced budget to the finance committee at its next meeting, and to the full board in May. He also pointed out that they’ll achieve the budget at the 1.55 mills that the district currently levies – they won’t be raising taxes.

Margaret Leary, the board chair, noted that they weren’t voting on the budget that evening, and that it would be modified before being brought to the board at their May meeting for approval. She clarified that although it’s possible for the AADL to levy up to 1.92 mills, they’ve chosen not to do that. “We have a track record of sticking to our budget and not overextending,” she said. “In this economy, there are not very many public organizations that are able to do that.”

Leary said that Nieman and AADL director Josie Parker deserve accolades – they set a great example for financial management and the provision of services.

Parker reminded the board that their May meeting will also include a public hearing on the budget.

Director’s Report

In addition to her written report, AADL director Josie Parker briefed the board on two other items. [.pdf file of AADL April director's report]

Josie Parker, Ann Arbor District Library director, at the board's April 25, 2011 meeting.

Parker reported that she had attended the oral arguments at the state court of appeals last week in the lawsuit brought by Herrick District Library lawsuit against the Library of Michigan.

[By way of background, new standards imposed by the Library of Michigan have changed how public libraries qualify for state aid. Those standards – originally proposed as rules – are the subject of a lawsuit against the state library, filed by the Herrick District Library in Holland. The AADL has filed an amicus curiae – or “friend of the court” – brief in support of the Herrick library’s position, which charges that the state library has no authority to set these rules, and is taking away local control from district libraries. Parker has discussed this lawsuit on previous occasions, including the board's March 21 meeting.]

Parker told the board that the three-judge panel had impressed her with their knowledge of the legal issues at stake, and that they were thorough in their questioning. It’s likely to take several months before they hand down a ruling, however. “For now, it’s a waiting game,” she said. In the meantime, she added, hopefully state aid will be dispersed.

Parker also reported that earlier that day, she’d been in Lansing for a meeting of the Michigan Library Association‘s legislative committee, on which she serves, to meet with the MLA’s lobbyist. In terms of state support for libraries, “it’s amazingly good news,” she said, relative to what they had anticipated. The state House proposed budget calls for cutting library funding from $7.25 million to $3.6 million, which she said is barely enough to fund the Library of Michigan and the Michigan eLibrary, known as MeL, for the year. There is no line item for MeL in the House version.

The Senate version holds library funding harmless – at the same levels as the current fiscal year – and includes a separate line item for MeL.

Parker said the House version at least doesn’t eliminate library funding entirely, and that the final budget will likely include funding somewhere between the House and Senate proposals. That’s “far more than we expected,” Parker said. She noted that legislators from the Ann Arbor area have been very responsive to these issues.

Director’s Evaluation

Margaret Leary, the board’s chair, is also chair of the director’s evaluation committee. She reported that all board members had participated in giving feedback about Josie Parker’s performance, and that they had discussed it in executive session earlier that evening. They’ll finish the formal evaluation document in the next month, and she’ll present a public letter regarding the evaluation at the May 16 board meeting. “It’s all good,” Leary said.

Friends of the AADL

Prue Rosenthal gave an update on the Friends of the Ann Arbor District Library (FAADL), a nonprofit that operates a used book shop in the lower level of the downtown AADL building to raise money for the library. They recently gave AADL a check for $20,000 – bringing this year’s total contributions to $100,000.

FAADL is planning a membership drive to coincide with the AADL’s summer reading program, Rosenthal said – she noted that the library is kicking off the summer reading program this year at the Ann Arbor Summer Festival.

Another thing that FAADL is discussing is whether to have a booth at the nonprofit part of the Ann Arbor Art Fairs. Parker had encouraged it, Rosenthal said, because this year it will be difficult to get access to the library from the art fairs. Fifth Avenue is closed between the library and East Liberty, where part of the art fairs are held, so it would be a good year to raise awareness about the bookstore, she said. They’ll need volunteers and $60 for the booth, Rosenthal reported, but it looks like they’ll go ahead with it.

March was down in sales – but overall for the year, the FAADL store is ahead of last year, Rosenthal said. They’ve raised $3,600 selling books online, via Ann Arbor-based Books by Chance and AbeBooks. “They are cooking on all burners,” she said.

Parker told the board that the space agreement between AADL and FAADL is up for renewal in May. At Leary’s request, Parker said she contacted FAADL president Pat McDonald to ask if there are any issues they need to address. McDonald indicated the agreement is fine as it stands, so Parker said she’ll likely ask the board to approve an extension to the agreement at their May 16 meeting.

As another item for the board to consider, Parker noted that several years ago, the library removed the FAADL from the library’s website when the nonprofit was struggling with some financial oversight issues. Now, the FAADL conducts annual audits and they’re clean, Parker said. She attends their meetings and is comfortable suggesting that the library place a link on their homepage to the FAADL website. Right now, the FAADL is only included on the library’s webpage that lists a variety of ways to contribute to AADL. Putting a link on the AADL front page would be “a pretty public vote of confidence for them, and recognition for everything they’ve done,” Parker said.

Rosenthal also noted that the FAADL is looking for board members, particularly people who have graphic design, marketing and public relations experience.

Auditors Approved

Added to the agenda at the beginning of Monday’s meeting was a resolution to approve the accounting firm Rehmann to conduct the AADL’s audit for fiscal years ending June 30, 2011 through June 30, 2014. [Rehmann – formerly Rehmann Robson – conducts audits for several local municipalities, including Washtenaw County. A representative from the accounting firm presented results of the county's audit at the April 20, 2011 county board of commissioners meeting.]

Barbara Murphy, chair of the finance committee, reported that Ken Nieman – associate director of finance, human resources and operations – had issued a request for proposals (RFP) and received four responses. Of those, two were chosen to interview: Rehmann, and Abraham & Gaffney. Murphy said that based on those interviews, it was clear that Rehmann best suited AADL’s needs.

Outcome: The board unanimously approved the selection of Rehmann to conduct the AADL’s audits through 2014.

Present: Rebecca Head, Nancy Kaplan, Margaret Leary, Barbara Murphy, Jan Barney Newman, Prue Rosenthal, Ed Surovell. Also AADL director Josie Parker.

Next meeting: Monday, May 16, 2011 at 7 p.m. in the library’s fourth floor meeting room, 343 S. Fifth Ave. [confirm date]

Traverwood Branch Recognition

During her director’s report, Parker noted that the Traverwood branch had been honored with a design award from the American Institute of Architects (AIA) Michigan, an award that was presented on May 15 at a ceremony at the Westin Book Cadillac Hotel in Detroit. (The branch was designed by InFORM Studio of Northville; O’Neal Construction of Ann Arbor was the contractor on the project.) Parker showed the board a brochure the printer had just returned, which featured the building’s sustainable design elements, including the use of ash trees harvested from the site.

She said the project’s use of ash trees was something that had attracted documentary filmmaker Bill Kubota, who filmed construction of the building. But as he filmed, he became interested in the human element as well, she said, and recorded the different perspectives of the project, from the points of view of the designer, the owner and the builder. “It shows the tensions, it shows the comradrie – it is real,” Parker said. “Up from the Ashes” will air June 11 on WTVS Channel 56 at 8 p.m. The AADL will host a showing of the documentary sometime later in June, Parker said.

Friends of the AADL

The board approved a space use agreement between the AADL and the Friends of the AADL, a nonprofit that operates a used bookstore in the library to raise money for AADL. The board for the FAADL is expected to approve the one-year agreement at its meeting this Wednesday. It replaces a month-to-month agreement under which the Friends have been operating for more than two years. Margaret Leary, the board member who chairs a liaison committee to the Friends, said it’s a step in the right direction for solidifying relations between the two groups.

The document outlines obligations on both the part of the AADL and the Friends. Among other things, it lists the operational issues for which FAADL is responsible, such as getting audited financial statements each fiscal year and remitting applicable sales taxes. The AADL will provide maintenance, repair and janitorial services as well as utilities such as electricity, heat and water – but not phone lines or internet access. The agreement also gives AADL the right to suspend book sales on its premises if FAADL violates terms of the agreement.

Budget & Finance

The board held a public hearing on the 2009-10 budget, but no one came to speak about it. The board discussion was brief. Ken Nieman, AADL’s associate director, was asked what funds would be used if unforeseen major building repairs were needed. Such repairs would be paid from the fund balance, he said. Earlier in the meeting, he had said that the fund balance was expected to be as much as $6.8 million by the end of the year.

The issue of repairs was top of mind because Parker had mentioned in her director’s report that the downtown building’s freight elevator had broken on Friday. They don’t yet know the extent of the problem, she said, or whether it can be repaired. If it needs to be replaced, it would cost a significant amount of money, she said, and would need board approval. When Parker said the elevator was leaking hydraulic fluid, trustee Prue Rosenthal said, “It sounds like my car.” “Only your car can’t plummet four floors,” Parker quipped, quickly adding that they weren’t using the elevator and that she’d been assured it would not fall. Rosenthal noted that the building’s condition had been one reason why they’d decided to tear it down and construct a new facility – a decision they tabled late last year because of economic conditions. Rosenthal said she was still convinced that they’d made the right decision to postpone new construction. Parker noted, “The things we were concerned about happening to this building are happening, and we’ll just have to deal with it.”

Regarding the 2009-10 budget, Parker said it was very tight because they’d decided to levy just 1.55 mills in taxes. (One mill equals $1 for every $1,000 of a property’s state equalized value, or SEV.) In the past they’ve levied 1.92 mills but have been operating on 1.55 mills – the difference was set aside and used to pay for building projects, such as the Traverwood branch. Barbara Murphy noted that when she first joined the board, AADL had been operating at 1.65 mills. She said that when Parker and her staff came on board seven years ago, they managed to lower the operating costs while improving service, and that they should be commended for that.

The board passed the $12.7 million 2009-10 budget unanimously. AADL’s fiscal year begins July 1. In a separate vote, they unanimously authorized the millage rate at 1.55 mills.

Director’s Evaluation

As part of Parker’s annual performance review, board chair Rebecca Head read a letter from the board summarizing their evaluation. The letter cited Parker’s vision, effective management and exemplary performance. Noting that Parker had recommended that her salary remain unchanged because of the need for fiscal prudence, the board agreed to keep her compensation at $143,115 for fiscal 2009-10. “The AADL financial management goals have been met and exceeded,” the letter states. “Josie, you continue to lead the AADL in the right course, carefully & creatively applying taxpayers’ dollars. Your conservative practice includes applying adequate resources to provide excellent services and materials while maintaining ample fund reserves.”

Among other things, the letter also congratulated Parker and her staff for taking on the Washtenaw Library for the Blind and Physically Disabled, calling it a new model for providing a specialized library within a public library.

When Head finished reading the two-page document, Parker received a round of applause from the board and staff members in the audience. Parker thanked the board for recognizing the efforts of her staff as well, saying, ”If this is what we can do in seven years, think about what we can do in 14.”

Present: Rebecca Head, Margaret Leary, Barbara Murphy, Jan Barney Newman, Josie Parker, Prue Rosenthal, Ed Surovell.

Absent: Carola Stearns.

Next meeting: Monday, June 15, 2009 at 7 p.m. in the library’s fourth floor meeting room, 343 S. Fifth Ave. [confirm date]