NOBLE Executive Board meeting
September 7, 2006
@ NOBLE
Call
to Order: Linda
Hummel-Shea called the meeting to order at 2:15 p.m.
In
Attendance: Dennis
Kelley, Elisabeth Tully, Linda Hummel-Shea, Mary Rose
Quinn, Karen Pangallo Martha Holden
, NOBLE- Executive Director Ron Gagnon.
Approval
of Minutes: A Motion
to approve Minutes of August 24, 2006 Executive Board meeting was forwarded by Dennis
Kelley, seconded by Elisabeth Tully, and unanimously approved.
Contingency fund/Reserves –
Ron explained the history and function of the capital and contingency funds. Ideally the contingency fund should have a balance
roughly equal to 6 months operating funds.
The funds are set aside for emergency purposes when regular operating
funds are unavailable or insufficient.
Ron noted that the capital and contingency funds are split into two
certificates of deposit at Danvers Savings Bank. The two accounts are staggered so that one or
the other matures every six months, for the purpose of better accessibility to
funds when necessary. Ron explained that
the funds cannot be expended without a vote of the Executive Board.
Ron then discussed the
capital fund and some of the larger items that have effected budgeting in past
years such as equipment purchases and hardware and software upgrades. He explained that these major expenses are
often partially reimbursed by the MBLC – generally in the 50-60% range. Ron explained that the cost of major
equipment has gone down substantially.
Whereas the cost of a large server may have been $250,000 years ago, the
same server might now cost in the high $40,000 range. Ron also explained that if NOBLE decides to
retain Innovative, upgrades will cost approximately $50,000 every three years
or so, at a 70-75% reimbursement rate by MBLC.
Ron explained that only if we decide to migrate to a new vendor other
than Innovative, or if NOBLE headquarters were moved, would we have to
anticipate a significant expenditure of capital funds.
Ron explained that the MBLC
provides funds for subsidizing telecommunications and resource sharing. There is an increase of $92,000 (72% increase) this year in state aid to networks. As an added benefit our maintenance costs on
our server have gone down significantly because of new equipment – and a
three-year prepaid maintenance agreement.
These positive aspects are balanced by financial challenges including the
continued cost of providing federated searching if in fact NOBLE members decide
it is a worthwhile investment (appr. $48,000/yr.);
maintenance and upgrade of new more sophisticated software (e.g. EDIFACT,
AirPAC, Customer API, Inventory Express); a trend in declining carryover from
year to year which has resulted in leaner budgeting and better efficiency, but
lower carryover; and, less overhead contribution ($12,000 lower) from NOBLE ILL
services. Ron also reminded the
Executive Board that because NOBLE is a membership-driven organization, any non-renewing
member would greatly impact the overall budget.
This is an unavoidable risk that is always present.
Ron also explained that NOBLE
retains approximately 6 months operating funds for contingency. There have been no recent additional funds
added to contingency. Regular additions
have been made to capital however with the result that with a planned $70,000
contribution to capital and accrued interest, the capital balance would be
approximately $1m in 2008. Dennis Kelly
raised the possibility that NOBLE consider not budgeting for addition to
capital in FY2008. Linda Hummel-Shea added that member assessments have increased every
year, and expressed the desire to offer some relief to members, even if only
for a year. The proposed budget contains
an increase of 2.3% for most members.
The meeting recessed briefly to give Ron an opportunity to rework
numbers. Ron returned with a proposal
for a $45,000 capital contribution with no increase in member assessment.
Ron went on to explain that
the budget as proposed includes a salary package not yet approved, but based on
a previous recommendation by him. A step
increase was added, but not a cost of living increase. Ron also figured in 9% in retirement contributions.
Dennis Kelley questioned the
timing of our evaluation of federated searching and the subsequent decision of
whether or not to renew. Ron explained
that he will generate a grant report with an evaluation of the product on
November 30 and that by the end of April, we will have to decide whether we
want to continue with the Serials Solutions product. We would need several months to explore
different options of we decide to opt for another vendor. Ron explained that once the budget is
approved by members, any subsequent changes have to be offset within other line
items in the approved budget so that the bottom line is always the same.
Dennis Kelley forwarded a
Motion to approve the proposed budget reflecting no increase in member
assessments and reduced capital contribution.
Mary Rose Quinn seconded the Motion that was unanimously approved. The budget as proposed will be presented to
members in September and voted upon at the October members meeting.
Ron then went on to explain
some changes that are necessary in the FY2007 operating budget. Ron explained that the office needs a
copier/printer/scanner unit that will cost roughly $6,000 and that he had
worked that figure into Line Item 65,205 Furniture & Equipment. Elisabeth Tully questioned the $10,000
adjustment to the MARC records line. Ron
explained that his adjustment brings the projected figure back to normal
historical range. Ron had expected that
we would experience a large increase because of an opportunity for direct
purchase from OCLC. It was subsequently
determined to be not a worthwhile opportunity.
Ron requested approval of
$45,275 from capital to purchase software (EDIFACT, Customer API, AirPAC) as a
motion was passed at an earlier meeting to authorize the purchase the software,
though the motion lacked a specific dollar amount. Mary Rose Quinn forwarded a motion to approve
the expenditure of $45,275 from capital funds as requested. The motion was seconded by Linda Hummel-Shea and unanimously approved.
The Executive Board briefly
discussed options for hiring a facilitator for long-range plan
development. Marshall Keys, who
facilitated the last plan, is not available.
The Board agreed to continue the discussion at next month’s
meeting. Also at the next meeting the
Executive Board will discuss personnel and cost of living increases.
Adjournment-
5:00 p.m.
Respectfully
submitted:
Martha
Holden, Secretary