(Approved January 17, 2008)
12-18-2007
7:45 a.m.
Paseo Verde Library
Call to Order
Chair Colleen Bell called the meeting to order at 7:49 a.m.
Roll Call
Board Members Present:
Colleen Bell, Robyn Carr, Todd Hauge, Herb Hunter, John Simmons, Jacob SnowBoard Members Absent:
Richard DerrickStaff Present:
Laura Carroll, Carolyn Easterby, Debbie Englund, Tom Fay, Ed Feldman, Orin Fielding, Kathy Franklin, Mae Giaimo, George Greicar, Florica Hagendorn, Sean Hill, Gayle Hornaday, Betsy Johnson, Janet Mastalir, Michelle Mazzanti, Laurie Orton, Joy St. John, Leona Vittum-Jones and Evelyn WalkowiczOthers Present:
Ron Floth, Regional Transportation Commission of Southern NevadaApproval of Agenda
John Simmons made a motion to approve the agenda. Herb Hunter seconded the motion. The vote was unanimous.
Approval of Minutes
Herb Hunter made a motion to approve the November 13, 2007 Board meeting minutes. John Simmons seconded the motion. The vote was unanimous.
Review of Paid Invoices
The paid invoices were accepted without comment.
Director's Report
Gayle Hornaday reported on circulation statistics. This time of year is generally a slow period. There were three closed days in November; circulation was still up 13% over last year and 500,000 circulations are expected by the end of December. Self Check is averaging 44-45% of all checkouts.
There have been no major security incidents. A security guard has been moved inside the building at the Pittman Library; problems inside the building and immediately surrounding it have lessened.
2008 library closing dates were distributed to the Board. The closing dates will be amended later for the addition of staff day.
New Business
Discussion and possible board action regarding the acceptance of the City of Henderson’s offer of 4 million dollars to purchase the Gibson Library.
Tom Fay said the Henderson City Council approved to pay $4 million for the Gibson Library in November. The Henderson Libraries Board may accept that amount and move forward with negotiations with the developer of Lake Mead Crossing. John Simmons asked where we are in the negotiations. Tom Fay responded there are several options; a proposal will be submitted after the first of the year. One option would be a 17,500 square foot building with lease and purchase options. The developer has shown interest in selling; that option would include a 19,000 to 20,000 square foot building. Because the new building is square there will be 3,400-4,000 more usable square feet than in the current building.
The proposed site is on Water Street, facing the development, at the rear of the project. In addition to having a separate entrance off Water Street, there will be 110 parking spots. The free-standing building will have its own front and facing. Unlike the big box stores being built in the development, the library will have its own look and feel.
John Simmons asked if the building will have signage. Tom Fay replied yes, on the building and on at least one of the 24-foot monument signs. There will be an opportunity to display on a large digital sign on the corner of Lake Mead and Water Street. John Simmons asked if the signage is permanent if the building is purchased. Tom Fay replied, it has yet to be negotiated, but yes that is the goal.
John Simmons stated that it seems like a lot of money per square foot. Tom Fay said all negotiations have been verbal and more will be known when a written proposal is received. The developer has an opportunity to look at some charitable giving in reducing the land or building price. The developer is reviewing options with their tax attorney. Once the written proposal is received negotiations can begin. During the next five months the details can be worked out.
John Simmons asked if the offer is accepted, is the library district locked in? Tom Fay said acceptance of the offer to purchase the Gibson Library is contingent upon the development of another site. There will be no escrow or closing date until the decision to move is made. Todd Hauge asked if the city will work with Henderson Libraries by honoring our lease as long as we need it. Tom Fay said yes, the motion needs to be made based on having a development to move into. The city understands the library district has been facing certain time constraints while waiting through the negotiations; it took nine months to complete discussions and negotiations with the city.
Jacob Snow asked how the $4 million dollar price was determined. Tom Fay explained there were dueling appraisals. The City of Henderson’s appraisal appraised the building only at $2 million dollars and many at the city didn’t feel like they should pay anything for land. No one did a lease-hold estate appraisal. Henderson Libraries’ appraisal valued the land at $4.5-5 million dollars and the building at $2.1 million dollars. Tom Fay stressed that the value lay in the 78-year lease value of the property. An appraisal done five to six years ago valued the land and building at $2 million dollars. The negotiations went back and forth until the $4 million dollar price was agreed upon. The city would go no higher; the library district would go no less.
Tom Fay said the opportunities for the new building are tremendous. The development is along a major transportation corridor. There is better parking; the building more spacious. There will be an opportunity to upgrade the IT services. There is room for a drive-thru window. John Simmons agreed and added that buying would be better than leasing; the building will increase in value over the years. Additionally, the site map indicates many anchor-type businesses that will draw people to the library. The usage numbers may go way up. John Simmons added it would be great if the developer can donate part of the expense. Tom Fay said the developer is interested in the possible tax advantages of a donation.
Jacob Snow asked what the City of Henderson will do with the existing Gibson building and land. Tom Fay responded that several departments need additional space and one suggested use would be for utilities. The City has a few options as to where the funds will come from.
Jacob Snow moved for approval. Tom Fay asked that the motion be contingent upon having a suitable in which to move. Todd Hauge interjected that it should be contingent on having a suitable development when available so the library can stay where it is until then. John Simmons requested the word negotiation be added, so Tom Fay can bring negotiations back to the Board. Jacob Snow said that was an acceptable amendment to the motion. Therefore the motion made by Jacob Snow: To accept the City of Henderson’s offer of $4 million dollars to purchase the Gibson Library contingent upon Henderson Libraries having a suitable building to move into and Henderson Libraries’ right per its lease agreement to stay in the current location until said move or until it is determined and mutually communicated to the City of Henderson that moving the Gibson Library cannot be accomplished. John Simmons seconded the motion. The vote was unanimous.
Discussion regarding the Gibson Library and its possible move to the Lake Mead Crossings shopping center.
Tom Fay said most of this was covered in the last item. Colleen Bell asked if there were any questions. Herb Hunter asked if this is a master-planned community with homes. Tom Fay responded no, there is approximately 750,000 square feet of retail. Target is scheduled to open in October of 2008. Most of the other “big box” stores will be open in November 2008 to take advantage of the next holiday shopping season. During the last three weeks the trees came down at the site and the land is being excavated.
Old Business
Discussion and possible board action regarding closing Sundays at Henderson Libraries.
Tom Fay said this has been an agenda item for three months. Closing on Sundays is needed because of the increase of workload vs. ability to bring on new staff. Budgetary concerns also require this consideration. The revenue shortfall is anticipated to continue for at least the next two years.
Closing Sundays infuses an additional 125 hours of staff time into the 6-day work week, allowing Henderson Libraries to maintain quality customer service and allow some scheduling flexibility to due to illness or vacation. Some cash savings will be gained when utilities and janitorial services are cut one day a week. IT staff will have a day to perform major upgrades during a closed period, not affecting operations. Some IT upgrades take more than 10 or 12 hours to complete which causes a public service impact. Because of increased circulation and use in general, the library district has not been able to put more staff on desks to match the increase in growth. Likely, little to no new staff will be added during the next two years, except the Green Valley Library staff.
The library usage numbers will continue to rise. Historically, during economic hard times library use goes up. Besides providing a free service, there is the feeling of home, family and good things. This trend was seen after “9/11” [terrorist attack on September 11, 2001]. When economic times get difficult, library usage goes up: free services, books, video checkouts and computer usage. Henderson Libraries will not be able to bring on staff to help with the increased workloads.
Sunday is a 4-hour open day, an 8-hour staff day. No one is happy about closing a day, but with a 5.59-6% budget shortfall this year this is a reasonable response. John Simmons said it will be easier to explain to the public in relation to the budget shortfall. Tom Fay agreed but said ultimately the library district would have been in the same situation without the budget crunch. Tom Fay agreed, especially with the transfer of the Green Valley Library.
Todd Hauge asked what the recommended effective date would be. Tom Fay recommended February 1, 2008. This time frame allows time to get the word out and February is Food for Fines month; many patrons return to regular library usage at this time of year. Herb Hunter asked how the public will be notified. Tom Fay responded through press releases, library signage and display on our webpage. John Simmons asked how the coffee shop lease will be affected. Tom Fay responded that this has been discussed with Jim Cerrone and hopes the Sunday closure will not affect their business.
Jacob Snow asked where the expense is coming from for the 125 more staff hours infused into the six-day work week. Tom Fay explained there would be no expense; these are the current Sunday work hours redistributed throughout the week.
John Simmons made a motion to approve closing Sundays at Henderson Libraries, effective February 1, 2008. Todd Hauge seconded the motion. The vote was unanimous.
Discussion regarding projected FY08 budget shortfall.
Tom Fay said that according to Debbie Englund’s projections, Henderson Libraries is looking at a 5.59%-6%, $510,000-$600,000, shortfall for the current fiscal year. There may be a revenue increase after the holiday season, but this will not be known until later. Budget planning will be based on the anticipated shortfall. Steps have already been taken to reduce costs. Travel in some instances will be disallowed or revoked. Some savings for the Green Valley Library opening can be used for this year as the collection is already in good shape. New purchases, except for those made with grant funds, will be limited. The FY08 shortfall can be handled without affecting any merit increases for the remainder of the fiscal year. Staff has been informed. Cost of Living raises and merit increases for the next fiscal year may need to be adjusted. Like all government budgets, the shortfall will have a cumulative effect. A $600,000 shortage this year will mean that much and more will be short the next year. This will have a major impact as the Green Valley Library is acquired around January of 2009. The revenue outlook probably will not change over the next two years. If we’re looking at a 2-year shortfall period, it will take 30-36 months to get revenue fully appropriated. This means there is a 36-month window in which the library district will be able to do little from a capital improvement perspective (new additional locations). John Simmons said this will make the Gibson move even more difficult: moving and new purchases - how far will the money go to get in there and really operate? Tom Fay said that while it is a time of great opportunity, it is a contradiction with what’s happening with the budget shortfall. All financial options will be explored. Henderson Libraries will have to be very careful. The library district is already conservative and will continue to be so.
Tom Fay said the library district is trying to get donations but that money has tightened up as well. Money is much harder to get now. At present, everyone is saying the downturn in development will bottom-out next summer (2008) and then there will be a slow recovery.
Announcements
The next Board meeting will be held on January 17, 2008 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 was adjourned at 8:28 a.m.
Pursuant to NRS 241.020, written notice of the meeting of Henderson District Public Libraries’ Board of Trustees was posted by Thursday, December 13, 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.