Library tells foundation to clean up its finances

Noaki Schwartz

NEWPORT BEACH -- The trustees of the Newport Beach Public Library,

through a strongly worded letter, have told the Library Foundation to

straighten out its finances -- or else.

Although the impetus for the Oct. 19 letter is unknown, its content is

clear. It demands the foundation reduce the ratio between expenses to run

the organization and funds donated to the library; create a plan for

regular financial reporting; and give greater control of foundation

operations to the city and the library board.

Foundation President David Carmichael could not be reached for comment.

Other officials close to the foundation declined to comment.

In the letter, the library board threatened to dissolve its relationship

with the foundation -- which would require the foundation to cease

fund-raising and “begin the process of vacating the library premises” --

if the group does not comply with the trustees’ requests.

Should this happen, the board would demand the foundation transfer all

the money it has raised in the name of the library to a trust fund

managed by the city.

The board requested the two groups have a meeting -- with a professional

facilitator in attendance -- to attempt to resolve the issues.

According to a letter to the Daily Pilot from Tracy Keys, the

foundation’s administrative director, the foundation is careful and

prudent in how it manages its donations.

The letter, which was written in response to a letter to the editor

published in the Pilot last week, said the costs involved with running

the organization are kept to a minimum with a single staff member. The

letter also says “financial statements are distributed at monthly Board

of Directors meetings and are always available upon request.”

Trustee Patrick Bartolic, who declined to elaborate on the situation,

said he hopes the two groups can work through it.

“There’s an inordinate amount of good people [in the foundation],” he

said. “We trying to make sure there’s not anything misunderstood.”

Trustee Catherine Saar-Kranzley said the board is not accusing the

foundation of any wrongdoing and hopes to resolve the issues, which have

been discussed for more than a year.

The history between the two organizations goes as far back as the

inception of the library itself, Bartolic said. The foundation was

instrumental in raising the money to build the central library on Avocado

Avenue.

Despite the long-standing relationship, a possible separation looms in

the distance if the two are not able to reach an agreement by Nov. 30,

according to the library board’s letter.

“It’s really our duty as trustees to have an understanding of what’s

going on,” Bartolic said.