Board Minutes 2000 06

Minutes of the LION Board Meeting
June 27, 2000

 

Present: Valerie Harrod, DUR, Sandy Long, MAD, Lydia Main, ELY, Bridget Quinn-Carey, ESX, Sandy Ruoff, GUI, Barbara Cangiano, BRB, Karen Smith, MDF, Mildred Hodge, MOC/TVY, Roxanne Moreau, MRD, Howard Einsohn, MXC, Elsie Jenkins, NWC, Linda Rusczek, MDT, Leslie Scherer, WAL, Lew Daniels, WSB, Susan Donovan, STC, Jan Day and Cynthia Huddleston, WBR, Nancy Wardell, Circ, Bill Edge, Mark Hewes, and Rick Widlansky, LION.

Absent: EHP, ELH, LED, MTC, OLY, NLN.

I. CALL TO ORDER: The meeting was called to order by Sandy Ruoff at the Woodbridge Town Library, CT at 9:42 am.

II. ADDITIONS TO ADGENDA: None

III. PUBLIC COMMENT: Bill Edge thanked everyone for a fabulous, wonderful party given in his honor.

IV. APPROVAL OF MINUTES: Karen moved and Lydia seconded a motion to approve the Minutes of May 23,2000 as distributed. All voted in favor.

V. TREASURER'S REPORT: Unusual items this month included the final payment for the latest epixtech upgrade and the annual prepay for software maintenance, which accounts for the negative cash flow. Projected balance June 30,2000 approx. $301,000 is higher than previously predicted.

VI. DISCUSSION/ACTION ITEMS:

  1. Personnel Issues:
    1. Personnel Policy revision: Jan moved and Lydia seconded a motion that Section 2. Benefits subsection c. Sick leave of the LION Personnel Policy be amended by adding: "5). Upon termination in good standing, LION staff who have served at least 5 years shall be compensated for any sick leave balance at the rate of one-fourth of his/her current hourly equivalent pay for each hour of sick leave standing to his/her credit as of the last day on the active payroll."
       

      It was noted that maximum sick leave (120 days) was already covered in the policy. This policy revision works out to a possible maximum of 30 days pay, which it would take ten years for a full time employee to earn, without taking any sick time. The current "worst case scenario" for existing LION Staff through FY01 would be a total possible liability of $9,651. This liability should be calculated each year and added to the benefits section of the budget as sick leave contingency. All voted in favor.

    2.  

    3. Interim Executive Director: As of July 1st, Mark has agreed to serve as Interim Exec. Director and his workload will increase substantially. We did set a precedent for additional compensation in 1998 for a pay differential equivalent to time-and-a-half for ten hours per week. The Personnel Committee recommends that this compensation be paid and that this rate of compensation be continued for two months beyond the hiring of the new Executive Director. The total cost would be $6,573. Susan moved and Elsie seconded a motion to accept the Personnel Committee's recommendation as stated. All voted in favor.
    4.  

    5. TIAA-CREF:
      1. A long-overdue review of the wording and resolutions of the retirement plan and tax-deferred annuity plan has been conducted and is now subject to legal review. After this review, LION will have to make the revisions by formal resolution. These changes are needed due to changes in federal law and do not have any cost or budgetary impact.
      2. During the above review, it was discovered that there has been an error in LION's administration of the plan that has affected contributions made over almost ten years. Bill distributed a document TIAA-CREF Retirement Annuities Contribution dated June 26,2000 to the Board explaining the error and the means recommended to correct it. Basically, through a misinterpretation of IRS wording, LION part-time employees were not included in the plan when they were legally eligible. On the advice of our CPA, the services of Kissel, Kneale & Tobin, Actuaries and Employee Benefit Plan Consultants, were engaged to help resolve the issues. Chuck Tobin was introduced to the Board. He explained that although the mistake occurred over many years, it was only one mistake and it meets the criteria for the IRS Self Correction program, which is the only one that does not carry an IRS penalty. It requires a correction so that the employees would be where they would have been (financially) if the error had not been made. So not only do the contributions that would have been made have to be made, but also a good faith effort to make up the amount of rate of return that these contributions would have earned must be paid. LION needs to document the error and the way the correction was calculated, but no notification of the error needs to be made to the IRS. The estimated LION liability to date is $39,526, and will increase slightly between now and the time the payment is made for two of the five people involved (who are still on payroll part-time). Lydia asked why LION was making the 2% contribution that was really the employee- required contribution and Bill said that was part of the philosophy to be adopted that we make the employees "whole" in advance in a way that we know will stand up in court if challenged and will hopefully not involve any negotiation, litigation, attorneys needed, etc. It was moved by Leslie and seconded by Karen that LION adopt the APRSC method of correction for past errors and adopt the philosophy of making our employees whole. All voted in favor. Lydia moved and Elsie seconded a motion that authorizes the expenditure of up to $3000 for consulting fees to complete the APRSC work and to review the draft plan and participant resolutions. All voted in favor.

       

    6. Bill is leaving this week; Lion and/or Mark may need to consult with him. It was agreed that Mark has approval to use Bill's assistance, Bill to be paid at his current hourly rate on an as-needed basis, not on a contractual basis. The Personnel Committee will monitor and report next month. Sandy thanked the Personnel Committee for a lot of time and work on all of these issues.

     

  2. SNET/SBC Issues: Rick reported that since SNET has been sold they are much more difficult to deal with. An upgrade of East Lyme's circuit was ordered 6 weeks ago and nothing has happened, with no expected date given. A DSL circuit has been ordered and Rick located a router but SNET has not been available to install it. We are not the only ones having these problems.
  3.  

  4. Departure of Community-Technical Colleges: LION has received official notification from Middlesex and both campuses of Three Rivers of their intention to withdraw from LION effective by the end of December 2000. The State of Ct. has chosen the Endeavor system for academic library use and since UCONN already has a contract, the Community Technical Colleges can be added as an addendum and receive the same discount rate, etc. Howard said that the other colleges in Bibliomation and Connect had political concerns motivating them that he and Mildred don't have with LION, as well as a system, Carl, that was totally inadequate for academic libraries. But the colleges really have no choice because they will be billed an estimated $3000 for the system vs. approx. $20,000 if they stayed with LION. (The $3000 does not include Internet service, the telecom and computer center service that is budgeted from some other State source.) The impact on LION's FY01 budget will be a loss of $19,000. Bill distributed a FY01 Budget Summary, which included the impact of this loss as well as the other actions taken today.
  5.  

  6. Insurance: There are 2 policies that the Finance Committee needs to review and recommend or not to the Board, an Errors and Omissions policy and Directors, Officers and Trustees Liability including Employment Practices.

     
    A break was taken from 11:00 am to 11:15.

VII. REPORTS:

  1. LION Staff Reports
    • Executive Director: No further report.
    • Associate Director: Mark distributed his report and talked about WebPAC statistics. He also discussed the statewide library card-barcode issue. Members felt Mark should draft a statement on behalf of LION that shows LION is trying to comply ASAP with the recommendations as soon as our system vendor's software will allow; he will email the draft to all and solicit comments.
    • Systems Manager: All email accounts have been cut over to LION Inc accounts. They are posted on the LION website under staff email accounts.
  2. Committee Reports
    1. PAC Committee – The Committee will meet by early fall.
    2. Bibliographic Committee – No report. There is no meeting in the summer.
    3. Circulation Committee-No report. Committee will meet early fall.
    4. Planning Committee – No report.
    5. "Hit" Committee- A demo of Public Access is to be scheduled for the Brainerd Board.
    6. Search Committee-The deadline for submissions was June 30th in the ads. No further report.

VIII. OLD BUSINESS:

  1. Mark reported that there had been a power failure at the Russell Library on a Saturday evening that provided a great test of our system and all 4 servers. All 4 servers came back on with no losses.
  2. Members discussed methods of producing library cards (typewriter) and who maintained card catalogs and shelf lists.
  3. Susan reported that the Parent Child Workshops were very well received at Blackstone and Stony Creek; the specialists made the difference; parents really want to hear them.

IX. NEW BUSINESS:

  1. Elsie asked about NELINET membership; the mailing of NetLibrary discount info and the switch of service for GAC to CRLC is causing some confusion. In LION, every LION member has a cluster agreement membership to cover the use of cataloging.
  2. Sandy Ruoff reported that there will be Gates money available for CT.
  3. There will not be a July 25th LION Board meeting. There will be a meeting in August, not necessarily the fourth Tuesday.

X. ADJOURNMENT: Lydia moved and Elsie seconded a motion to adjourn at 11:47 am.

Respectfully submitted,

Sandra R. Long, Secretary

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