A unanimous BOE vote
calls for the end of Baker & Taylor's
buys for libraries

By Debra Barayuga and Gregg K. Kakesako
Star-Bulletin

Hawaii's public librarians and executives of Baker & Taylor are waiting to see if state librarian Bart Kane terminates the controversial book buying contract by the end of the month.

Arnie Wight, Baker & Taylor senior vice president of the North Carolina-based company, said he tried to contact Kane this morning to determine "what the full process will be, what the final recommendation of the attorney general will be and what he (Kane) plans to do."

"Our view is we need to see what the final decision is and what the actual rationale for it (is) before we make a decision on what direction we will take," Wight said.

State Board of Education members voted unanimously last night to terminate the 5-1/2-year, $11 million contract. Kane and the state attorney general will make the decision on when to end the contract and how the termination will be carried out, board chairwoman Karen Knudsen said.

Wight said evidence and testimony has made it clear that the book selection and purchasing procedure, which he pointed out was set forth by the state, "did not meet the needs as the branch libraries saw them, and they had major problems with the intent, content and structure of the contract."

The contract provisions that call for fixed unit pricing and outsourcing of book selections, allowing the company to select all of Hawaii's new book purchases, "were all required by the state," he said.

"Any vendor had to follow those guidelines whether they agreed with the model, if you wanted to bid on the business."

Wight's company is completing its second year of the contract.

Wight said his company questioned those provisions during the bidding process because "we have no other contract or customer that has either complete outsourcing or fixed unit pricing. It's unique in the industry."

He said Baker & Taylor requested changes to the contract, but the state wanted to stay with the outsourcing provision.

"Our view is that we have been making proposals for modifications and changes for the last six months, but never got a final review or approval from the administration or the attorney general. The model clearly doesn't work to meet the needs of the branch libraries, so some change had to be made."

Some librarians are concerned the contract won't end as quickly as they'd like.

"I would have liked the Board of Education to take a stronger stand," said Norman Fitzpatrick, young adults' librarian at Kaneohe Library. "They turned it back into Bart Kane's hands, but his track record has been one of negotiating with Baker & Taylor."

A blue ribbon panel charged with evaluating the firm's performance recommended to the board that the contract be terminated on or before June 30.

"We felt it was important to conclude at the end of this fiscal year, rather than be committed for a longer period of time," said Lee Putnam, chairwoman of the panel.

The panel concluded that Baker & Taylor's performance was deficient, that the Hawaii State Public Library System has not been well served by the contract, and that library collections and the morale of Hawaii's librarians cannot continue to suffer because of Baker & Taylor's poor performance.

"It's surprising at this point of the contract, we're seeing not improvements, but things getting worse," Putnam said.

The state has paid $3.5 million, plus a nonrefundable initial payment of $730,000 to Baker & Taylor for fiscal years 1996 and 1997. But the company still continues to be way behind in deliveries, for both fiscal years 1996 and 1997.

"We can't go into a new fiscal year negotiating with Baker & Taylor," Fitzpatrick said. "(Kane) needs to take action immediately."

Knudsen said Kane has been aware of the difficulties caused by the contract and indicated his dissatisfaction in a Feb. 12 memo to Baker & Taylor. "He will follow through," she said.

"The board gave us clear and concise direction, and we will carry out the board's decision," said John Penebacker, special assistant to Kane.

Upon termination, the library then will have to form a new system of selection with the input of branch librarians, board member Kelly King, said. King is also the chairwoman of the Public Libraries committee.

A new law, signed by Gov. Ben Cayetano yesterday, requires that until the Baker & Taylor contract expires or is terminated, librarians will be involved in purchasing decisions. Once the contract is terminated, selection will be performed by librarians.

The new law also limits the board's authority to enter into any future outsourcing contracts for the state library system.

"We anticipated the BOE would terminate the contract due to public demand," said Sen. Rod Tam, who helped introduce the bill.

The Legislature also set aside $250,000 in the next two years to purchase books if the contract ended. The governor has yet to sign the measure.

If the board hadn't decided to terminate, the governor could have used his authority to withhold payment from Baker & Taylor for the next fiscal year, Tam said. "If no money, no contract."

Baker & Taylor cannot hold the Legislature or governor accountable for breaking the contract, he added.

The state has been most careful in addressing the possibility of termination for fear of being sued by Baker & Taylor.

"I expect (the firm) would see the futility in pushing this issue," said King. "It's not making them look any better" to librarians across the nation.

The outsourcing contract will be the subject of a panel discussion at the upcoming American Librarian's Association conference in San Francisco later this month.

Outcry against the Baker & Taylor contract began last year when librarians began receiving shipments containing duplicate titles and materials they deemed inappropriate or of cheap quality.

The shipments lacked reference and foreign language materials, Hawaiiana and quality children's and young adult titles. An adhoc group of library employees, the Coalition for Improved Libraries, called for greater involvement by librarians in decisions affecting the libraries.

The Hawaii Government Employees Association filed suit last week asking the contract be declared invalid.