Submission Date:
Question:
I work with a number of municipal public libraries - some are village, others are town. Some libraries use their municipality's employee handbooks, payroll, services like snow blowing and building maintenance, and have the municipalities cut the checks.
It would be helpful to have a clear understanding that the libraries are not a department of the municipality and that the board of trustees is in charge of the library, hiring staff, evaluating staff, approving expenses, and have complete control of the budget.
It would also be helpful if there was a sample MOU that spells out the division of responsibilities clearly.
Answer:
Many of the questions we get at "Ask the Lawyer"[1] relate to this concern. As the priorities cited by the member suggest, the library-municipality relationship is a Big Issue.
I have worked with city, town, and village attorneys, in one way or another,[2] for most of my professional life. So I can understand why sometimes, if they are focusing on reducing liability or overhauling operations, a town board or a city mayor might be tempted to think of the library as "just another department."
But we know that is not the case.
With all that in mind, I am very grateful to have this opportunity to craft a pro-active answer to this issue.
I am going to let the requested sample Memorandum of Understanding—or "MOU"—do most of the talking on this topic. For comments on why I have included certain things, you'll see footnotes and items in italics that should be removed from any final version (unless you have a really fun-loving and tolerant town attorney).
Caveats
Of course, with all things "template," this MOU should only serve as a boilerplate.
Further, libraries with very sensitive or less-than-ideal relationships with their municipalities might want to use this only as an internal guide for discussion. It's not a fun fact, but it remains a fact that some municipal leaders could take a "request for clarity" as an act of aggression.
And as noted throughout, to the greatest degree possible, your library should consult their own attorney about the different considerations in this template.[3] With that in mind, I hope this document is a useful starting place for that attorney, and I welcome calls from lawyers working with this document.[4]
And here we go:
USING THIS TEMPLATE: Any guidance in italics, and the footnotes, should be removed before an MOU using this template is finalized. If at all possible, the MOU and attachments should be reviewed by an attorney before signature. Items in bold are non-negotiable; they are based on the law and are not subject to change.[5]
[PROPOSED] MEMORANDUM OF UNDERSTANDING
Between the [NAME] Library and the [MUNICIALITY]
This memorandum of understanding is between the [NAME] Library (the "Library") and the [INSERT NAME OF MUNICIPALITY] (["GOVERNMENT ENTITY" or "GE"][6]), which both serve the community of [INSERT NAME OF MUNICIPALITY] (the "Community").
This memorandum of understanding ("MOU") is entered into by the Library's Board of Trustees (the "Library Board") and the [AUTHORITY OF THE ENTITY[7]] ("[GE AUTHORITY]"[8]) and is intended to ensure clarity and unified purpose with regard to critical interdependencies between the Library and the GE. Together, the Library and the [GE] are the "Parties" to this MOU.
As a living document this [first] version of the MOU sets forward both items of clarity, will be revisited by the Parties in the month of [INSERT] every [TIME SPAN[9]].
Mission and Shared Purpose
The mission of the Library is [INSERT MISSION].
The mission of the [GE] is to [INSERT MISSION].
The Library and the [GE] share the mission-oriented purpose of serving the Community within the [GE] by [compose and insert "shared purpose"[10]]; this is their "Shared Purpose."
The Parties
The Library is a public library chartered by the Regents of the New York State Education Department on [DATE], as shown in the most recent version of the Charter attached as "A" (the "Charter").[11]
As required by law, the Library is governed by a board whose authority is set by sections 255, 256, 260, and 226 of the New York Education Law, the Not-for-Profit Education Law, the Charter, and the bylaws of the library. A copy of the most current bylaws of the Library is attached as "B."
The [GE] is a Municipal Corporation incorporated under the laws of New York State in [YEAR].
As required by law, the [GE] is governed by [INSERT][12].
A copy of the [GE] Code (the "Code") may be found at [insert code link[13]].
[IF RELEVANT] The provision[s] of the Code pertaining to the Library are attached as "C."
The Relationship of the Parties
As a Regents- chartered entity, the Library is an independent corporation with the ability to own property, enter into contracts, employ a workforce, and maintain its own bank account for the management of library funds.
Further, the Library is required by state law and regulation to employ adequate employees to staff the Library in fulfillment of its Plan of Service, which is attached as "D."[14]
Since the [GE] and the Library are two distinct entities, many of their operations occur independently of the other. However, for the sake of their Shared Purpose, the leadership of the parties have determined that certain "Critical Interdependencies" are in the best interests of the Community.
These "Independent Operations" and "Critical Interdependencies" are itemized below, with comments or additional information in column 3.[15]
|
Operational item
|
Independent Operation or Critical Interdependency? When possible, check your conclusion with your lawyer before making a final determination. |
Important information or attachment |
|---|---|---|
|
Ownership of Library Building
This should specify if the library or the municipality owns the structure housing the library. |
If the GE owns the structure but charges no rent (or $1), it is a "critical interdependency." If the library owns its premises, it is an "independent operation."
|
Attach a survey or schematic of the library's complete property as "F".[16] |
|
Maintenance of Library: capital improvements
This should specify who takes the lead on capital projects and how the parties will work together for remodeling or building a new library.
|
By "take the lead," I mean: who signs the contracts for the work and manages the different factors in the capital project?
If the GE "takes the lead" on capital improvements, it is a "critical interdependency." If the library takes the lead, it is an "independent operation."
|
The library should always have copies of warrantees and contracts related to capital improvements. |
|
Maintenance of Library: emergency repair
This should specify what happens when a pipe bursts and you need to stop the water and fix the pipe, or who makes sure the elevator gets fixed promptly (we'll handle damage to library assets in another section).
|
If the GE is responsible for arranging emergency repair, it is a "critical interdependency."
If the library does, it is an "independent operation."
|
This is a great place to list who to call in the event of a facilities emergency. |
|
Maintenance of Library: landscaping and snow removal
This should specify if the library or the municipality does the work or contracts for it.
|
If the GE is responsible for external routine maintenance, it is a "critical interdependency."
If the library does, it is an "independent operation."
|
This should establish not only the party responsible, but set the expectations for service (for instance, should the driveway be plowed before the employees arrive on a snowy day? That sounds good to me).
If performed by a third party, the library should always have copies of contracts related to grounds maintenance, even if the contract is with the GE. |
|
Maintenance of Library: routine cleaning
This should clarify the line between "routine" cleaning (like weekly vacuuming) and "non-routine cleaning" (like cleaning up when a printer cartridge breaks open near the rare book room), and specify if the library or the municipality does or contracts for the work.
|
If the GE is responsible for routine cleaning, it is a "critical interdependency."
If the library does, it is an "independent operation."
|
If performed by a third party, the library should always have copies of contracts related to routine cleaning, even if the contract is with the GE.
Details such as when the cleaning is, and the levels of access of workers, are important to clarify. |
|
Damage to library structure: insurance coverage
This should specify what insurance covers damage to library structure.
|
If the GE coverage applies, it is a "critical interdependency."
If the library supplies its own coverage, it is an "independent operation."
|
The board should always have a copy of the policy covering the library structure, and the copy should be in the cloud, not just in the library.
Always. This should not be left to chance.
Current insurance policy or amount determined for "self-insurance" by municipality is attached as "F." |
|
Library Security Personnel
This should specify if the library or the municipality supplies any security personnel.
|
If the GE is responsible for security personnel, it is a "critical interdependency."
If the library employs or contracts for its own security, it is an "independent operation."
|
Any discussion of this or contracts relating to security should emphasize rights of access and patron confidentiality, and clearly establish who is "in charge" of the security personnel (who tells them what to do).
|
|
Library Security System, including any cameras
This should establish who pays for, monitors, and owns the system and any content on it.
|
If the GE is responsible for security personnel, it is a "critical interdependency."
If the library employs or contracts for its own security, it is an "independent operation."
|
Any discussion of this or contracts relating to security should emphasize rights of access and patron confidentiality![17]
|
|
Insurance coverage for damage to library assets (collection, furniture, equipment)
This should specify what insurance covers damage to library assets (not the structure). The type and amount of coverage should be assessed on an annual basis by the board of trustees.
|
If the GE coverage applies, it is a "critical interdependency."
If the library supplies its own coverage, it is an "independent operation."
To help with this item, a library should have an inventory of its assets.
|
The board should always have a copy of the insurance policy covering the library assets, and the copy should be in the cloud, not just in the library.
Always. This should not be left to chance.
Current insurance policy is attached as "G." |
|
Employees: who is the employer
|
The employer of the employees is the library, not the [GE].
|
This is not negotiable. |
|
Employees: who processes payroll and tracks leave accruals[18]
|
If the GE issues the paychecks, it is a "critical interdependency."
If the library runs its own payroll, it is an "independent operation."
|
Whatever entity (or third-party contractor) is doing this, it must be done properly and with proper retention of payroll records and paid time off accruals. |
|
Employees: who administers benefits
|
If the library employees get benefits (health insurance, retirement) through the GE this is a "critical interdependency."
If the library arranges its own benefits, it is an "independent operation."
|
Copies of Summary Plan Documents ("SPD's") or other benefit descriptions are attached as "H" |
|
Employees: what coverage applies for workers' compensation, paid family medical leave, and disability?
|
If the library employees are covered through the GE, this is a "critical interdependency."
If the library arranges its own coverage, it is an "independent operation."
|
This is another one to have absolute clarity on!
Your library should have the most recent mandatory postings[19] up in an area accessible to employees, confirming this clarity. |
|
Employees: what employee policies apply, and who is responsible for determining them
|
The employer of the employees is the library, not the municipal entity. While the library may "borrow" some or all municipal policies, within the constraints of applicable law and regulation, the board of trustees determines the employment policies.
|
|
|
Sexual harassment/civil rights complaints, whistleblower complaints, resolving conflict of interest matters
|
These complaints must always be managed by the Library Board per the relevant library policy.
|
|
|
Library Emergency Response Plan(s)
Optional but encouraged
|
The entity responsible for the library's response in an emergency is the Library Board, not the municipal entity. While the library may "borrow" some or all municipal policies, within the constraints of applicable law and regulation, the Library Board determines any emergency response-related policies.
|
|
|
Facility use policies
|
Regardless of whether the library owns the building, or is a "tenant," only the Library Board determines facility use policies of the library (for example, rental or free use of rooms and other library space).
|
A good facility use agreement establishes the rules of use, confirms if/how liability for the use is transferred (hold harmless, indemnification), and addresses if insurance is necessary. |
|
Banking
Who hangs onto the money?[20]
|
Library funds are solely controlled by the library, regardless of where the funds are kept.
Even if the operational funds of the library are held by the GE, this "critical interdependency" should be confirmed as being in aid of separate and distinct library finances solely controlled by the Library Board.
|
Money can be a HUGE source of dysfunction between a library and its municipality. Before picking any battles, the Treasurer, director, and board should have clarity about their expectations and goals for stewarding the funds of the library. This is a good topic to stay in touch with your system, Library Development, and your lawyer on. |
|
Fiscal controls (petty cash, cash handling policy, book-keeping, accounts receivable and payable, use of credit card, tracking restricted funds, tracking capital funds)
|
To the extent needed, and consistent with a public library boards autonomy over library finances, these policies are to be adopted by the Library Board. |
|
|
Audit |
Different libraries will have different audit obligations, but all are subject to audit by the New York State Comptroller.
Any audit of the library should be done with the awareness of the library board.
|
The last 10 years of audits should be accessible for review by the parties. |
|
Procurement and disposal of library assets[21] |
Although controlled to a certain extent by law, procurement and disposal of library assets are solely controlled by the Library Board.
|
|
|
Budget
|
The library budget is passed by the board.
|
|
|
Library System
|
The library board is the entity that decides to sign any Library System membership agreement.
|
A library facing a determination based on any of the factors in this chart should reach out to their System as soon as possible for assistance. Although every system is different, they will be a critical ally in navigating these items. Remember, you are not alone!
|
|
Custom factors special for your library
|
Every library is different. Use this section to track custom factors that impact your library-municipality relationship. |
There are so many cool, odd, special things out there in library world, I am only surprised when a day goes by and I haven't learned about a new one. |
|
Directors and Officers insurance and/or indemnification of library trustees |
If the GE provides coverage and/or indemnification[22], this is a "critical interdependency."
If the library has its own policy, it is an "independent operation."
|
The board should always have a copy of the policy covering the library trustees and directors against assertions of liability in the course of their library duties.
Always. This should not be left to chance.
Current insurance policy is attached as "I." |
Acknowledged on behalf of the [NAME]Library on _______:
BY: _______________________________________________
Acknowledged on behalf of the [NAME of ENTITY] on _______:
BY:______________________________________________
Attachments:
A: Library Charter
B: Library Bylaws
C: Section of municipal code pertaining to library
D: Library Plan of Service
E: Survey or schematic of library property
F: Current Insurance Policy (premises)
G: Current Insurance Policy (assets)
H: Benefit documents
I: Current Insurance Policy ("Directors and Officers Insurance")
[1] For example: RAQ #50; RAQ #62; RAQ #93
[2] My first experience with municipal law was when I worked for attorney Dan Seaman, who has served as the town attorney for many towns and villages in Niagara County, New York. My former partner Daniel Shonn was the town attorney for Akron, NY, and I covered town meetings from time to time. I worked closely with the Town of Lewiston and the City of Niagara Falls attorneys when I was the in-house counsel at Niagara University. And lately, even though I love my city very much, I just can't stop suing Buffalo (on behalf of clients), so they are really getting to know me at the city law department.
[3] Critical difference between an "MOU" and a contract: an "MOU" is, by design, not intended to be enforceable-although it may recite items that are enforceable via other means (for instance, if they simply recite something that is mandatory under the Education Law, which this one will). For libraries seeking to elevate an MOU to an enforceable agreement, it is best to work with a lawyer from the get-go.
[4] (716) 464-3386, or [email protected].
[5] Any NY library system that wants a fillable version of this MOU Template can write to [email protected]
[6] For this item, you will select whatever type of entity you are working with: city, town, or village. For this template, we're going to call it the "GE" (for "government entity"), although that will make it sound like you are trying to make them turn right in the 1800's.
[7] The authority entering into the MOU will vary depending on the entity type.
[8] This name will also be modified to reflect what applies to your municipality: Town Supervisor, Village Board, City Common Council, etc.
[9] This "time span" should be selected to ensure you never have a fresh board of trustees and municipal leaders who don't know how things need to function.
[10] A nice "shared purpose" might be "the service and betterment of those living in our community." It's nice to revisit the "shared purpose" every now and again so leadership is invested in it and it doesn't get stale.
[11] Make sure you use the most recent version of the Charter. An updated copy can be obtained via a request to New York State Education Department, Division of Library Development. If there is enabling legislation, attach that, too, since the legislation can impact some of the variables in the chart.
[12] This is whatever combination of leadership calls the shots for the municipality: town supervisor and board, etc.
[13] I am sure I don't need to tell a library audience that most municipalities have their codes online, but I just love footnotes.
[14] Yes! This MOU will need a binder or a routinely updated database to hold all the attachments! Don't you love it?
[15] From what I have seen—and at this point, it's a lot—every library working with a municipality handles this differently. It's like a Myers-Briggs personality test...endless permutations, even within similar types.
[16] Knowing the exact physical footprint of the library is critical! Among many other things, this is how you set the boundaries for the limit on things such as, for example, smoking near the property.
[17] This is critical for compliance and clarity about patron records under the New York Civil Procedure Laws and Rules (CPLR) 4509.
[18] A not-so-fun, but instructive, read on this topic is found in the NY State Comptroller Audit found here: https://www.osc.state.ny.us/sites/default/files/local-government/audits/2018-09/lgsa-audit-library-2018-brentwood.pdf
[19] A list and copies of most postings is here: https://labor.ny.gov/workerprotection/laborstandards/employer/posters.shtm
[20] Extensive information on this topic is found here: http://www.nysl.nysed.gov/libdev/trustees/handbook/pltreasurer.htm
[21] A good example of this is in Ask the Lawyer RAQ #68
[22] "Indemnification" is when an organization defends a director, officer, or employee in a lawsuit (like a discrimination claim).
Tag:
COVID-19, Emergency Response, Public Libraries, Memorandum of Understanding, Municipal Libraries
