Regular meeting BELVEDERE-TIBURON LIBRARY AGENCY Belvedere-Tiburon Library, Tiburon, California January 29, 2018 As approved on February 26, 2018

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1 Regular meeting BELVEDERE-TIBURON LIBRARY AGENCY Belvedere-Tiburon Library, Tiburon, California January 29, 2018 As approved on February 26, 2018 Roll Call, Present: Members Absent: Also Present: CALL TO ORDER: Chair Jeff Foran, Vice Chair Thomas Cromwell, Thomas Gram, Fredric Postle, William Smith George Bo-Linn, Niran Amir Doug Norby, Barry Moss, John Scarborough, Glenn Isaacson, Deborah Mazzolini, Ann Aylwin, Bonnie Spiesberger, Kristin Johnson, Jillian Hochstetler, Diane Lynch, Deirdre McCrohan, Susan Rowan Chair Foran called the meeting to order at 5:45 pm. OPEN Forum: Susan Rowan, member of the public, asked questions about how the project would affect the local environment. Director Mazzolini will provide her with the EIR. Diane Lynch, member of the public, spoke in opposition to the expansion and the Agency s choice of a non-local lender. Jillian Hochstetler, member of the public, voiced support for Library Expansion and for the Agency s pursuing a loan. Ann Aylwin, member of the public, voiced support for what the Library will become with the support of the loan and the Foundation s fundraising: Trustee Considerations: 1. CONSIDERATION AND APPROVAL OF RESOLUTION NO AUTHORIZING EXECUTION OF A LOAN PROPOSAL AND NEGOTIATION OF A LOAN AGREEMENT TO BORROW FUNDS TO SUPPLEMENT THE ONGOING LIBRARY FOUNDATION CAPITAL BUILDING CAMPAIGN EFFORTS AND TO ACCELERATE CONSTRUCTION OF THE LIBRARY EXPANSION PROJECT. Chair Foran explained that tonight s meeting was scheduled earlier than usual, and Trustee Considerations were placed first on the Agenda due to Trustee commitments to another meeting this evening. Trustee Gram explained the background of the Agency s exploration and pursuit of a line of credit for the Expansion, and the process and results during the fall of In order to begin the construction process and stay ahead of inflation, the objective was to pursue a loan, which during its term would be affordable under the Library s budget and reserves. Agency January 29, 2017 APPROVED Page 1 of 5

2 collaboration with the Foundation Executive Committee and subsequent consultation with several different banks led to the current loan proposal from Mechanic s bank. The loan would be guaranteed by the Library Foundation. Mechanic s bank has proposed very favorable loan terms for the Agency for a $4 million line of credit: The currently proposed terms were presented in tonight s packet. The Loan would be used for construction purposes only. The Bank has agreed to hold the interest rate at 4.5% until the end of February. It would be to the Library s cost advantage, therefore, to expedite the process. The Library Foundation will continue to raise funds through the construction period and beyond. Once construction begins, the Foundation funds will be used first, with loan draws used last only as needed. Current project costs are estimated at $18 million. The loan proposal in tonight s packet has been signed by the Mechanic s Bank representative. If the Agency approves the loan tonight, Chair Foran will sign the agreement and keep the process moving forward. The final loan documents would be agendized at a future meeting for final approval by the Agency. A condition of deed conveyance by the Town of Tiburon for construction to begin is that the required funds for construction are available. Trustee Gram met with the Town of Tiburon Town Manager, Greg Chanis, and the Town Finance Subcommittee to confirm whether a loan would be in keeping with their requirements for available funds. Town officials confirmed that this would be acceptable. Trustee Gram recommended that the Library Agency pass Resolution No to authorize the execution of the Loan Proposal Letter and the review of formal loan documents and that the Loan proposal be signed by Chair Foran. Trustee Gram asked for questions from the Agency and the Public. As there were no questions, he proceeded to explain the loan proposal as presented in the packet. Trustee Gram emphasized that loan may never be used if the Foundation raises enough money before and during construction. The loan will be the last money used for construction, so the interest cost will not be a large cost factor during construction. The Foundation will provide a quarterly report to the Bank regarding fundraising progress compared to construction cost. Glenn Isaacson has worked out the final project budget for presentation to the Bank, and will represent the Agency during construction, dealing with the construction contractor directly. He will report directly to the Bank on construction progress and cost. Mechanics Bank has agreed to Isaacson s formats for reporting. Bonnie Spiesberger, member of the public, thanked Trustee Gram for his time and effort on this project. January 29, 2017 APPROVED Page 2 of 5

3 Member of the Public, Diane Lynch, asked about the document s requirement for acceptance by February 9. Trustee Gram explained that the final document will not be due until the end of February. Chair Foran read Resolution and asked for a motion to approve. Motion to approve Resolution No authorizing execution of a loan proposal and negotiation of a loan agreement to borrow funds to supplement the ongoing library Foundation capital building campaign efforts and to accelerate construction of the Library Expansion Project made by Trustee Cromwell, seconded by Trustee Smith. Ayes by Chair Jeff Foran, Vice Chair Thomas Cromwell, Trustees Tom Gram, Fredric Postle, and William Smith. Trustees Niran Amir and George Bo-Linn were absent. 2. Chair s Report: Chair Foran thanked Trustee Gram for his hard work on this proposal. He also thanked Glenn Isaacson for his contributions, and Foundation President Doug Norby and Treasurer Barry Moss, for their help and cooperation, and the Library staff for their financial information and advice. 3. Library Director s Report: Director Mazzolini thanked Chair Foran for his collaboration with Library staff on the loan project. She thanked Trustee Gram, and the Committee team, expressing pride the group s accomplishment. The Library Newsletter will, once again, be in process soon, edited and published by Carol Kurland, who has been producing it pro bono for over 15 years. Director Mazzolini asked Trustees to submit any information for articles by February 9 th, and suggested that a report on the loan be included in the newsletter. The Gently Used Art Auction will be held March This event is produced once every 2 years by the Art Committee. On the Wednesday night (March 14) before the official opening, a private Foundation Reception will be held. The Gallery will be opened to the public on Thursday. The art is all donated by local community members. Proceeds from the auction are used to pay for lights, art books, and any other projects related to art at the library. The Children s department started a new Mandarin language story time last week, with full house attendance at the first 2 sessions. A local community member volunteered to take on the storytelling role. In addition to the French story time, this program helps keep children involved in language and new learning. Members of the community are invited to start additional children s language groups. 4. Foundation Report: January 29, 2017 APPROVED Page 3 of 5

4 Foundation President Doug Norby reported that the Foundation s current priority is the Expansion Capital Campaign. The Foundation is looking fill 3 open Foundation Board seats out of 15. Former President John Scarborough retired, and 2 other Board members left for personal reasons. Gary Cookhorn is organizing the recruitment effort. The Foundation has some good candidates, and are interested in members who can help raise money. The Foundation recently hired Michelyn French to handle office support for fundraising. Maxine Epstein, Director of Philanthropy, has raised a substantial amount of money toward the Capital Campaign in her first 3 months with the Foundation. The annual Teddy Bear Tea will be held on February 10. This event is sponsored and run by the Bookmarks fundraising group. The date of the Gently Used Art Auction Foundation preview is Wednesday, March 14. On Thursday, April 26, another Popup will be held at the Corinthian Yacht Club. Former Trustee Ann Aylwin added that the speakers have been lined up for the event. President Norby said that the Foundation had voted to guaranty the loan from Mechanics Bank, and expressed gratitude to Trustee Gram and the Executive Committee for arranging this. This will allow for construction to begin ahead of the game in light of worsening inflation, which has escalated because of the fires in the north. Chair Foran thanked President Norby and the Foundation for their guaranty. 5. Financial Statements: Revenues are right on target with budget. Some December tax monies have been received in January, bringing revenues up to approximately 50% of budget. Expenses are on par with budget. Books, Services, and Supplies appear a little high, simply because the large MARINet bill was paid in full early in the year. Trustee Postle asked what MARINet costs the Library annually. Director Mazzolini said that it was about $77,000 this year, and includes some databases. The Library s portion is 5.2% of Marin County s total cost. The allocation is based on population, size of collection, and size of circulation. An additional $200,000 is available for other books, service, and supplies in the Library s approved budget. 6. Committee Reports: As mentioned above, the Gently Used Art Auction has been scheduled. This is a major event, with weeks of preparation involved. Much art has been donated. Jim Levorsen s family is giving much of his art to the Auction. Susan Norton, Chair of the event, is working closely with the Levorsen family on the best presentation strategy for Jim s work. January 29, 2017 APPROVED Page 4 of 5

5 The Teddy Bear Tea includes arts & crafts and stories along with an elegant tea service. Consent Calendar 7. Motion to approve the minutes of November 20, 2017, made by Trustee Cromwell, seconded by Trustee Postle, passed unanimously by those present. 8. Motion to approve the warrants dated November and December, 2017, made by Trustee Cromwell, seconded by Trustee Smith, passed unanimously by those present. COMMUNICATIONS & ANNOUNCEMENTS 9. Monthly Calendar There was no discussion of the monthly calendar. 10. Schedule of 2018 Meeting Dates Given the upcoming vote on the loan, and the fact that the Library will be closed on February19 th ( President s Day), it may be prudent to change the date of the next Agency meeting from February 12 th to February 26 th. The meeting was adjourned by Chair Foran at 6:45 pm Respectfully Submitted, Kristin M. Johnson, Clerk of the Belvedere-Tiburon Library Agency Board January 29, 2017 APPROVED Page 5 of 5