Strategic Retreat Minutes
10-19-2007
12:00 p.m.
PF Changs; 101 S. Green Valley Parkway, Henderson, NV 89012
Call to Order
Board Chair, Colleen Bell, called the meeting to order at 12:15.
Roll Call
Board Members Present:
Colleen Bell, Robyn Carr, Richard Derrick, Todd Hauge, Herb Hunter and John SimmonsBoard Members Absent:
Jake SnowStaff Present:
Debbie Englund, Tom Fay, Sean Hill, Gayle Hornaday, Michelle Mazzanti and Trudy CaseyApproval of Agenda
The agenda was approved as written.
Approval of Minutes
Todd Hauge made a motion to approve the September 20, 2007 board meeting minutes. Richard Derrick seconded the motion. The vote was unanimous.
New Business
Discussion regarding strategic priorities and planning for the District.
Gibson Library
An agreement with the City of Henderson on the value of the property has not been reached. No decision is expected until the City of Henderson’s Property Management Meeting on October 24th. The deadline from the developer is mid-November to make the last phase of development.
Henderson Libraries would like to receive $5 million dollars for the building and lease on the property. The City is offering just over $2 million dollars. It was pointed out that the library district gave up land for the City’s renovation. As compensation, the library district’s yearly lease amount was reduced from $1,260 to $1 per year. Continued reduction in library and surface city hall parking has resulted. Tom Fay pointed out that the only entrances into the events plaza/city and library parking lots are on library managed property.
Tom Fay said the true value in the property is the lease value for the 78 remaining years of the library district’s lease, along with the City’s need for space. It is written into the lease that the space must be used for a public library; however, once the lease between the City and the library district is void, that is no longer a binding requirement.
It would be unfeasible to move the Gibson Library and secure a lease in the new development for the amount (2 million) the City is offering. The Board will be kept informed of negotiations.
Should the Gibson move take place, The capital infusion may minimize the budget absorption timeline for taking on the Green Valley Library, may accelerate RFID and automated district-wide check-in capabilities to increase efficiencies, or accelerate a warehouse space acquisition. The new Gibson library location will require approximately $300,000 annually in lease payments.
If the Gibson move does not take place, plans will need to be made to improve the Gibson Library: power enhanced HVAC replacement and exterior/ interior improvements (paint/repair).
Revenue
Impacts of development slow down were discussed. It is anticipated that the downturn in the housing market will not improve for at least one year. It may take two years until revenue growth returns. Project M [casino] has been delayed and scaled down. Early library district revenue projections show a shortfall of $270,000.
Colleen Bell asked how the district will deal with the shortfall. Tom Fay replied that budgeted library materials and the Green Valley Library materials may need to be reduced. If the shortfall continues, it may be necessary to cut back on cost of living and merit raises. Library hours may need to be cut.
Budget absorption for the Green Valley Library opening was projected at 18 months. With the current economic forecast that absorption will likely take 36 months, or until 2011. Post Green Valley budget adjustments will affect all operations.
Development slow down will also impact alternate revenue streams. There will be fewer donations and large donations will be even less likely. In fact the district has already seen a slow down in large gifts and corporate giving.
The district is continuing to evaluate leveraging future revenues over 30 years, instead of the traditional 10 years for loans on major capital projects. NRS allows for type of leveraging.
A bond or tax override issue may be considered for 2010 or 2011. It may be possible to align with a Parks and Recreation bond instead of a dissimilar issue such as police as fire.
The Clark County School District will be putting a bond issue to voters in 2008. Henderson Libraries will be closely watching the school bond results to determine how Henderson residents vote. If a school bond doesn’t pass with Henderson voters, a library bond will likely see the same result. During the last valley wide police initiative, Henderson voters, voted no. The initiative passed due to valley wide participation, but the negative Henderson aspect is worthy of note.
If Henderson Libraries decides to put forth a bond/tax override, it will be necessary to reestablish the PAC. A public awareness campaign must be in place for one year prior to putting the issue before voters. The minimum cost to mount such a campaign, approximately $100,000. Fundraising for a PAC competes with library, Library Foundation Fund and Friends of the Library fundraising and an additional PAC volunteer corps must be formed. A decision about whether to proceed with a tax initiative will need to be made in 2009.
Numerous ideas were offered from charging for library cards to for pay premium services. Tom Fay stated that we are a public library and charging for the basic services that we are supposed to offer would be counter productive. As pointed out by Gayle Hornaday, the premium services that would be considered for revenue potential are often not high volume, thus revenue associated with these services would be low. The district will continue to seek alternative revenue streams
Increase in Use
Circulation and other library usage have dramatically increased in the last year. With the addition of the Green Valley Library, the projected five year growth is estimated at nearly 130%.
Circulation FY07 1.065M Base Year
Circulation projection FY08 – 1.21M 13.6% growth in 1 year
Circulation projection FY09 – 1.60M 50.2% growth in 2 years (half year of Green Valley)
Circulation projection FY10 – 2.0M 87.8% growth in 3 years (full year of Green Valley)
Circulation projection FY11 – 2.2M 106.6% growth in 4years
Circulation projection FY12 – 2.45M 130% growth in 5 years
Discussion on Change to District Hours of Operation
As another measure to combat the anticipated revenue shortfall and to address concerns about maintaining adequate coverage to offer our standard of customer service, the Board will be asked to consider closing one day a week. In the next two to three months, various discussions will ensue at the board meetings regarding this proposal. One example of closing revolves around a closed Sunday. While the library is open to the public for 4 hours, the staffing for the day is at 8 hours. Closing on Sunday would place over 120 hours of staff time back into the work week. Colleen Bell recommended having a “talking points” flyer to give to the public explaining the necessity of closing one day per week. This will be an information item at the October and November Board meetings and possibly an action item at the December Board Meeting.
Discussion on Green Valley transition and progress
A building plan was distributed. The Board reviewed where the departments and computer lab will be possibly located in the Green Valley Library. The building will need renovation and the Administration team is reviewing necessary changes to the building. It currently appears that Las Vegas-Clark County Library District will be taking all furniture, books and shelving when they close Green Valley.
The position for manager of the new library has been posted. The new manager will start in March 2008 to complete training by the opening date. Staffing for the library will be a mixture of old and new to ensure Henderson Libraries’ philosophy and mission continue.
Discussion on Staff Day
The 2007 staff day was a success. The classes offered were more general than in the past. Nancy Pearl was the keynote speaker and also conducted a class on the “care and feeding” of book clubs. The staff was appreciative of the classes, speakers and the free time allowed to network with co-workers.
Discussion on Malcolm Expansion
The space previously occupied by Talking Books is being used for ODC [Opening Day Collection] storage. Depending upon budget limitations, Malcolm hours could increase within the next 3-5 years. The square footage of the Malcolm Library may expand to fill its 6,050 square feet. This expansion will likely be post-Green Valley.
Discussion on the Pittman Library
Thanks to the Outreach staff, operations at Pittman have stabilized. The circulation at Pittman is about the same as bookmobile circulation. The hours are limited, however the limited hours allow the Outreach staff to operate the bookmobile and provide regular bookmobile stops to areas that are badly in need of library services. Due to growth in northeast Henderson, a full-service library location is preferable. The new location needs to be along a major transportation corridor, if possible. If and when that location is identified, the current Pittman library would likely be closed. The Henderson Boys and Girls Club could then become a bookmobile stop.
Discussion on Centralized Acquisitions and Materials Processing Center
Opportunities for this facility are still being reviewed. There are current opportunities available, depending on the Gibson Library sale and projected 5 year revenue; however this facility/ function will probably be post-Green Valley. The facility will cost approximately $250,000 annually for a 30,000 square foot facility and $315,000 for a 40,000 square foot facility. Operating costs will be approximately $100,000 annually.
Discussion on RFID
Discussion on RFID
Self-check out has been very successful since implementation. RFID technology would allow library materials to be checked in and sorted automatically. There is also a security feature that could be used along with RFID. RFID will allow faster back room operations as well as faster Acquisitions receipt and final stage electronic processing. Michelle Mazzanti has visited two libraries (Maricopa County, California and Provo, Utah) that have implemented RFID check-in technology. A three-week backload of work has been reduced to 6 hours. Robyn Carr asked about the cost involved. Sean Hill responded initial cost would be $25,000 to $35,000. A 5-bin sorter would cost approximately $100,000. If implemented, the entire collection must be tagged. Estimated cost to implement RFID district-wide is $550,000 to $750,000. Estimated cost for automated check-in equipment is $350,000.
Implementation of RFID would save staff expense: As of this date, approximate 3.5 to 4.0 full time employees are used solely for the purpose of checking in materials. The cost of this task is approximately $130,000 per year. When Green Valley comes on board, the cost of this task will be approximately 6 full time employees at $190,000 to $200,000. Looking at automated check-in devices (3 bin sorters) at approximately $100,000 each, the district could pay for the hardware in approximately 2.5 years.
It is labor-intensive to put RFID tags in the books and move the barcodes, however, major vendors have the capability to send new books with the RFID tags already in place.
The Floating Collection Module timeline appears to be mid 2009.
The meeting adjourned at 4:02 p.m.
Announcements
The next Board meeting will be held on October 25, 2007 at the Paseo Verde Library, 280 S. Green Valley Parkway, Henderson, Nevada.
Public Comment
Note: Pursuant to Nevada’s Open Meeting Law, action may not be taken on matters presented during this period until included on a future agenda as an action item.
Adjournment
The meeting adjourned at 4:02 p.m.
Pursuant to NRS 241.020, written notice of the meeting of Henderson District Public Libraries’ Board of Trustees was posted by Friday, October 12, 2007, at least three (3) business days before the meeting, including in the notice the time, place, location and agenda of the meeting. Details of the agenda may be obtained by calling 492-6584.
Posted at Paseo Verde Library, James I. Gibson Library, Lydia Malcolm Library, Pittman Library, City of Henderson-City Clerk’s Office, and the HDPL website.