HomeMy WebLinkAboutAgenda - 05-17-2011- 5tORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 17, 2011
Action Agenda
Item No. 5 " -''
SUBJECT: Dissolution of the Hyconeechee Regional Library System
DEPARTMENT: Library Services PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
INFORMATION CONTACT:
1) Resolution of Hyconeechee .Lucinda Munger, Hyconeechee
Regional Library System on Proposed Regional/Orange County Library
Dissolution. Director, (919) 245-2528
Clarence Grier, Financial Services
2) Proposed Plan of Dissolution with (919) 245-2453
Timeline and Financial Impact
(Exhibit 1)
3) Letter of Support from Mary Boone,
North Carolina State Librarian
Concerning Proposed Dissolution
PURPOSE: To consider approval of the Dissolution Plan for the Hyconeechee Regional Library
System (HRLS) and begin transition to an independent Orange County library system.
BACKGROUND: On April 12, 2011, the BOCC received and discussed the draft of the
resolution and dissolution plan for the Hyconeechee Regional Library system
(http://www.co.orange.nc.us/OCCLERKS/1104123.pdf). To achieve an orderly transition from
region to county system, the Orange, Person, and Caswell library directors recommend a multi-
year approach to assure a continued high level of service to the communities. The plan would
cover FY 2010-11, FY 2011-2012 and FY 2012-2013. During FY 2011-2012 the region would
remain intact, but the libraries would work toward full compliance with State Aid regulations. In
FY 2012-2013 libraries would become independent systems, but selected services as outlined
in the transition plan would remain and would be administered by Orange County. These would
include the courier service, which would rotate among the three counties once per week to
deliver and return requested materials. Beginning in FY 2012-2013, the courier route would be
discontinued and materials would be requested through regular Inter-Library Loan procedures,
including any charges for the service.
At the April 12th work session, the BOCC recommended that no changes be made to either the
draft resolution or the dissolution plan. On April 13, 2011, the HRLS Board formally voted to
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approve the proposal of dissolution and transition plan for the regional library system. The
Person County Board of Commissioners voted on May 2, 2011 to approve the dissolution plan
of the regional system. The Caswell County Board of Commissioners is scheduled to vote on
May 16.
FINANCIAL IMPACT: Beginning in FY 2011-12 Orange County would begin to absorb certain
expenses that are now paid by the regional library system. In FY 2011-12 there would be an
additional expense of $11,896 in personnel costs. In FY 2012-13 the County would assume
another $28,093 in personnel costs and $6,000 in POLARIS (book catalog and patron account
software) maintenance. However, these costs would be off set by elimination of the $18,000 in
fees paid from each county to the regional system. The estimated overall net financial impact to
Orange County following the 1St year of dissolution in FY 2012-13 would be an increase of
$28,500. The increased funding will be included in the library's proposed annual operating
budget for FY 2011-12.
RECOMMENDATION(S): The Manager recommends that the Board approve the Hyconeechee
Regional Library System Dissolution Plan and authorize the Chair to sign.
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HYCONEECHEE REGIONAL LIBRARY SYSTEM DISSOLUTION
Whereas, the Hyconeechee Regional Library was incorporated under Chapter SSA
of the North Carolina General Statutes on November 8, 1948 to establish and maintain
free public libraries in the Counties of Orange, Person and Caswell for the use and the
benefits of the general public; and
Whereas, in 1992, the Hyconeechee Regional Library Board of Trustees and the
governing bodies of Orange, Person and Caswell Counties desired to provide an
unproved level of public services and established county libraries as departments within
each respective county to establish policies and procedures regulating procurement,
personnel, accounting, travel, and facility maintenance activities thereby affording each
local library the rights and responsibilities of department status within their respective
county; and
Whereas, the Orange, Person and Caswell Counties entered into a joint contract
with the Hyconeechee Regional Library to provide joint services, according to the
procedures and provisions of Chapter 160A, Article 20, Part 1 of the North Carolina
General Statutes as provided in the North Carolina General Statutes 153A-270; and
Whereas, Hyconeechee Regional Library continued to receive and distribute to
each County all regional funds from the North Carolina Department of Cultural
Resources and other grants and or donations provided to the Regional Library System;
and
Whereas, in addition the Hyconeechee Regional Library retained the functions of
establishing regional policy and priorities related to public library service, programming,
collection development, materials selection, grant funds, regional budget approval, and
appointment and evaluation of the regional library director, and all other functions not
covered or controlled by the Counties; and
Whereas, over the years Orange, Person and Caswell Counties have developed
into distinct library services areas that require targeted, focused library services based on
each county's unique population, which has been substantiated by the 2009 Technology
Planning Report commissioned by the Regional Board of Trustees; and
Whereas, a recent change in the Administrative Rules and Regulations governing
public libraries would require increased costs to the Regional Library System that could
be more appropriately absorbed by County Departments; and
Whereas, the North Carolina State Librarian met with the County Library
Director's and it was recommended that in light of the changes to the Regional Library
System that it may be in the best interest of the residents to have three independent
library systems; and
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Whereas, the Hyconeechee Regional Library Board of Trustees now believes that
the residents of each county would benefit from three independent library systems that
could develop specific policies, procedures, catalog, electronic resource offerings and
long range strategic plans that benefit each county's unique populations and allow for
greater opportunity to apply for state and federal grants based an each county's individual
needs and demographics.
NOW THEREFORE, we the Board of Trustees of the Hyconeechee Regional Library,
Incorporated pursuant to N.C. Gen. Star. §SSA-14-02, do hereby vote to dissolve the
corporation effective July 1, 2012, conditioned upon the following:
1. That the Counties of Orange, Person and Caswell Board of County
Commissioners vote their intent to withdraw from the Hyconeechee Regional
Library System on June 30, 2012; and
2. That the Plan of Dissolution (Attachment A} put forward by the Hyconeechee
Regional Library Board of Trustees is agreed upon by each County.
NOW THEREFORE, we the Board of Trustees of the Hyconeechee Regional Library,
Incorporated do agree that if the above stated conditions are met, after winding up the
corporation, we shall deliver to the Nortlr Carolina Secretary of State the Articles of
Dissolution of the Hyconeechee Regional Library Incorporated pursuant to N.C. Gen.
Star. §SSA-1404. rr
This the ~~day of t t, 2011
~~
C air, Boar f Trustees
Hyconeechee Regional Libr Inc.
The vote of the Board of Directors of the yconeechee Regional Library Board,
Incorporated took place on ~~`day of , 2011, s Ayes _~No
Attest:
Secretary
AB~,~a
Hyconeechee Regional Library System
Plan of Dissolution
The purpose of this Plan of Dissolution ("Plan") for the Hyconeechee Regional
Library System ("Regional Library") is to establish a comprehensive approach to
dissolving the Regional Library System and the orderly transition of the services and
assets of the regional system to Caswell, Orange and Person County.
Plan Term. This Plan will cover the period from July 1, 2011 through June 30,
2013 and continue in effect so long as there are at least two Parties to the Plan.
II. Effective Date of Transfer. Each County will assume all responsibility for their
separate independent library systems on July 1, 2012. The Counties shall take the
actions provided in this document, or which may otherwise be necessary or
appropriate, to permit the County's assumption of responsibility for their library
system on the effective date.
III. General Operation. The transition of the Regional Library services to the three
counties shall be conducted in a multi-year approach with each library assuming
responsibility for library services as follows:
A. Fiscal Year 2011-12
1. Transition to Separate Systems. Each County will work in
accordance with the North Carolina General Statutes Chapter
153A, Article 14, and any corresponding implementing
regulations, in obtaining status as a separate library system.
2. Regional Library System Board. The Regional Library System
Board will continue to meet until June 30, 2012.
B. Fiscal Year 2012-13
1. Provisional System. Each County library shall operate as a
separate provisional system within the Regional Library System
under the Regional Library System's policies until they have
migrated to their own Integrated Library System ("ILS").
2. Library Advisory Board. By July 1St, 2012 each County will have
their own library advisory board and operational budget in place
for library services.
3. Courier Services. Throughout the Plan Term, each County shall be
responsible for assigning employees, on a weekly rotating basis, to
perform the courier services between the three counties. The
initial rotation shall be:
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Hyconeechee Regional Library System
April 13, 2011
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1. Orange County
2. Person County
3. Caswell County
Courier services shall rotate between the three Counties until the
end of the Plan Term or until each County has migrated to their
own ILS. Each County will use its own vehicle for transportation.
ii. Integrated Library System ("ILS") -Polaris System.
1. Orange County will host the Regional Library System's
ILS Polaris server. The Orange County Library System's
Administrator will be the administrator of the Polaris
System at no charge to Person or Caswell Counties. This is
an in-kind service to the Regional Library valued at
$11,601.
2. The maintenance fees for the software of the Polaris
System and PC Reservation systems shall be divided
between the three Counties' based on their actual use of the
systems.
3. Each County shall begin and complete the migration
process from the Regional Library System's shared ILS to
an ILS of their choice. Once each County has migrated
from the shared ILS, the transfer of materials from one
library to another shall be accomplished through the Inter-
Library Loan System.
iii. Memorandum of Understanding. The Counties will develop a
Memorandum of Understanding to continue selected library
services for the benefit for all residents.
C. Fiscal Year 2013. Each county library shall offer out-of-county library
cards to the residents of the other counties at no charge for a period of five
years, beginning July 1, 2013 through June 30, 2018. This period may be
extended by an additional five years by written agreement of the Counties.
IV. Liabilities and Assets. The Orange County Financial Services Director,
acting as the Regional Library's fiscal agent, shall provide a list of all assets
and liabilities of the Regional Library to each County as of June 30 of each
year during the Plan Term.
A. Liabilities. Each County will assume all liabilities of the Regional Library
System, to the extent permitted by law including, but not limited to, all
liabilities related to the ownership of existing Regional Library System
Hyconeechee Regional Library System 2
Apri113, 2011
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Assets which have accrued of which may accrue prior to the effective date
of transfer.
i. The Counties, however, shall retain their individual liability, if
any, related to their respective use of the Library System both
before and after the Effective Date. of Transfer. The assumption of
liabilities by each County does not include the assumption of
liability for the other Counties indebtedness for library services or
facilities.
ii. The Regional System shall pay any and all known remaining debts
of the Regional Library System prior to June 30, 2013.
iii. The Regional Library shall not incur any additional liabilities that
extend beyond the term of this Plan without the written consent of
the County Board of Commissioners or their designee.
B. Acquire System Assets. In 1991, each County acquired all rights, title and
interest in all Regional Library System assets contained within their
respective library facilities. The remaining assets of the Regional Library
shall be distributed as follows:
i. Technological Assets. The ILS server, which as of July 1, 2013
will have a value, following depreciation, of five thousand dollars
($5,000).
1. During the transition, to offset the value of the server,
Orange County shall continue to provide IT support to the
Polaris System for all three counties as well as provide a
system administrator at no charge to Caswell and Person
Counties. The in-kind cost of Information Technology
support and administrative services are valued at $11,601.
2. At the end of the term of the Plan, the Polaris System shall
become the property of Orange County.
ii. Vehicle. The Regional Library System purchased a Honda Civic
Hybrid for $21,815 in 2006. In December 2010, the vehicle
sustained damages in an accident, which has reduced the value of
the vehicle. As of the date of this Plan, the value of the vehicle has
fully depreciated.
1. During the transition period, the vehicle will remain in
Orange, County and be used to provide courier service.
Orange County shall continue to pay all expenses
Hyconeechee Regional Library System
April 13, 2011
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including, but not limited to, the cost of upkeep,
maintenance, and insurance on the vehicle.
2. At the end of the term, the vehicle can be purchased at fair
market value June 30, 2013 by any of the Counties. Person
and Caswell Counties shall have first right of refusal to the
vehicle.. The County offering the most money for the
vehicle may purchase the vehicle. If no County, wants to
purchase the vehicle the vehicle may be sold and the
proceeds distributed as provided below.
3. Any proceeds from the sale of the vehicle shall be divided
among the Counties on an equal basis.
iii. The Regional Library shall not purchase any additional assets
during the transition period.
V. Policy. During the term of this Plan the Regional Library shall have the
ongoing authority and responsibility to operate and administer the Regional
Library System in accordance with all federal and state laws, as well as the
policies, rules and procedures of the Regional Library.
VI. Compliance with Law. The Counties agrees that the Counties and their
officers, and employees shall be required to comply with all federal, state and
local laws, regulations and policies that relate to the performance of Regional
Library Services during the Plan Term.
VII. Regional Library System Budget. Each County shall continue to share cost
allocation of the Regional Library during the transition period. The cost shall
be allocated as contained in the budget, which is attached as Exhibit 1 and
hereby incorporated by reference into this Plan.
VIII. Amendments. The Plan may be modified or amended only by written
amendments that are approved and signed on behalf of all the Counties.
IX. Notices. All notice or other communications required or permitted by this
Plan must be in writing, addressed as follows:
For Regional Library Services
Name Lucinda Munger
Address 137 W Margaret Lane
Hillsborough, NC 27278
For Orange County
For Caswell County
Name Rhonda Griffin
Address 161 Main Street East
Yanceyville, NC 27379
For Person County
Hyconeechee Regional Library System 4
Apri113, 2011
Name Lucinda Munger
Address 137 W Margaret Lane
Hillsborough, NC 27278
Name Christy. Bondy
Address 319 S. Main Street
Roxboro, NC 27573
X. No Third Party Beneficiaries. Nothing expressed or implied in this Plan
shall give any person other than the Counties any rights to enforce the
provision of this Plan. There are no intended third-party beneficiaries of this
Plan.
XI. Severability. If any provision of this Plan shall be held invalid or
unenforceable by any court of competent jurisdiction, such holding shall not
invalidate or render unenforceable any other provision of this Plan.
IN WITNESS WHEREOF, the parties have hereunto signed this Contract in their official
capacities on the day and year listed below.
HYCONEECHEE REGIONAL LIBRARY SYSTEM
Betsy Watlington, Chair
Hyconeechee Regional Library System
CASWELL COUNTY
Nathaniel Hall, Chair
Caswell County Board of County Commissioners
ORANGE COUNTY
Bernadette Pelissier, Chair
Orange County Board of County Commissioners
PERSON COUNTY
Jimmy Clayton, Chair
Person County Board of County Commissioners
Date
Date
Date
Date
Hyconeechee Regional Library System 5
Apri113, 2011
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Exhibit 1
Financial Transition Plan
Orange County is anticipating absorbing all personnel costs currently charged to the
Hyconeechee Regional Library system.
Hyconeechee Continuing Costs
Personnel
Fiscal Agent
Trustee fees/Travel
Audit fees
Supplies
Total
Orange County Costs
Assumed Costs (increased)
increase in County Personnel
increase in County Personnel
Total Orange County Costs
Share County Costs
Polaris maintenance fees
FY 10-11 and 11-12 fees split 1/3rd per county
FY 12 -13 fees based an usage per county
Caswell County
Person County
Orange County
Total Shared County Costs
Total Costs for Transition Plan
Fiscal Year
FY2010-11 FY2011-12 FY2012-13 Total
$ 39,988 $ 28,093 $ - $ 68,081
3,000 3,000 - 6,000
2,100 2,100 - 4,200
7,000 7,000 - 14,000
500 500 - 1,000
52,588 40,693 - 93,281
- 11,896 - 11,896
- - 28,093 28,093
11,896 28,093 39,989
9,000 9,000 5,250 23,250
9, 000 9,000 5, X50 23, 750
9,000 9,000 14 000 32,000
27,000 27,000 25,000 79,000
$ 79,588 $ 79,589 $ 53,093 $ 212,270
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North Carolina Qepartment of Cultural Rosources
Stutc Library of North Carolina
Beverly Enves Perdue, Governor
Linda A. Carlisle, Secretary
Ms. Betsy Watlington, Chair
Board of Trustees
Hyconeechee Regional Library
137 West Margaret Lane
Hillsborough, NC 27278
Dear Ms. Watlingtan:
Match 29, 2011
Mary L. 8oonc, Stntc Librarian
On behalf of the State Libraty of North Carolina, T atn pleased to write to yotr and
the members of the Board of Trustees as you make plans to dissolve the
Hyconeechee Regional Library. We at the State Libraty support this action, and
look forward to working in future with new county libraries in Orange, Caswett.
and Person counties.
We expecfi that the t•evised North Carolina Administrative Code gavet•ning the
establishment, operations, and dissolution of regional libraries will take effect an
April 1, 201 1. At that time, you may move forward with the dissolution of the
regional library in accordance with these new rules.
We at the State Libraty will be glad to provide any assistance that tray be needed
in the dissolution of the regional library and the subsequent establishtttent.of
county Libraty systems. Please do not hesitate to call upon us at any time.
S Incerety,
~y~
Maly L. oone
State Librarian
cc: Board ofTrustees Members
Lucinda Munger, Library Director
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