"We will conduct a financial investigation and we request your cooperation. ... Otherwise, quite frankly, we will not fund the contract again," Sen. Rod Tam, co-chairman of the Senate Education Committee, yesterday told representatives of Baker &Taylor, a North Carolina-based company granted a 51/2-year, $11.2 million contract to select and process all new books for Hawaii public libraries.

Arnie Wight, Baker &Taylor's senior vice president for customized library services, agreed to provide all necessary information. He and other company representatives were at yesterday's Board of Education library services committee meeting to explain what they're doing to correct problems local librarians have complained about for months.

"The ultimate goal of this contract is to satisfy the library patrons and the taxpayers of Hawaii," Wight said after the meeting. "We will meet the performance measures in the contract and we will provide any financial information for review."

Tam (D, Downtown-Nuuanu) said the review would be completed before the end of the legislative session so lawmakers could decide whether the contract was worth funding for another year.

State librarian Bart Kane said he was confident the review would prove what he has maintained all along: that in tight fiscal times an outside company with huge bulk-buying power can provide more books at better prices.

But dozens of library employees and patrons who spoke at yesterday's meeting or submitted written testimony said Baker &Taylor sends too many cheap paperbacks and "shelf-sitters" that nobody checks out.

With the libraries' book-buying budget cut from $3 million to $500,000 over the past three years, careful selection is especially critical.

"Choices ... need to be made by Hawaii's professional librarians who know their community's needs best," wrote librarian Marylu Taylor.

Among the complaints from the standing-room-only crowd:

From July through Jan. 8, the Waianae Public Library has received only eight new nonfiction titles and only one book that retails for more than $50, wrote Gail A. Gomes, president of the Friends of the Waianae Library.

Price is an issue because Baker &Taylor charges $20.94 per book regardless of the list price.

Of 62 videos sent to Kaneohe Public Library, 25 have never been checked out and another 12 have been checked out three times each or less, said branch librarian Deborah Gutermuth.

Bond Memorial Public Library has received 350 items (costing $7,329) from Baker &Taylor, of which 145 (costing $3,036) were not useful, wrote branch librarian Gwen Kraft.

Of 28 books Publishers Weekly selected as the best juvenile titles of 1996, Baker &Taylor sent a total of nine for all Hawaii libraries, wrote Bruce K. Van Brocklin, branch manager of the Thelma Parker Memorial Public and School Library.

Although the company representatives did not address those specific complaints, they did address general concerns about cost and quality.

The main reason the company initially sent so many books that libraries already had was that it lacked access to Hawaii's computer base, said Wayne McDonnell, director of the project for Baker &Taylor.

It has that access now and also has taken other steps "to absolutely stop the duplications," he said.

McDonnell said the flat price rate was a good deal because expensive items balanced out cheaper ones.

About 35 percent of the items selected in the first six months of the contract retailed for more than $20.94 each, he said. Plus, the price includes selecting, buying, cataloging, processing and shipping and it remains fixed throughout the contract, despite inflation.

As for the quantity and types of books, McDonnell said the company had adhered to all specifications in the contract.

Despite the critical testimony, including some blaming him, state librarian Bart Kane said he was encouraged.

"You have to remember that initially they were objecting to outsourcing of any kind. Tonight they're still concerned about selection, but they're acknowledging it's working in other areas."

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Company response

Here is some of what Baker &Taylor said it has done or will do to improve service to Hawaii's public libraries:

Canceled all remaining 1996 selections to ensure there are no more duplicates; reallocated the money to this fiscal year.

Current library holdings will be checked for duplicate titles at the time of selection, and again just before shipping.

A committee including Hawaii librarians will review all proposed selections. But the company will have the final say on what to buy.

The company will use patron satisfaction surveys and circulation data to see if the books it's sending are popular or not, and adjust its selections according to the results.

Weekly conference calls will be used to get feedback so the system can be continuously refined. Company representatives will visit branch libraries starting this spring to refine collection profiles.