NORTH BEND — Questions about a more than 10-year-old trust arose at a city council work session when the  Public Library Board told councilors the city could be misusing funds given to the library by a former donor.

At the North Bend City Council work session, Tuesday, members of the North Bend Public Library Board said they disagreed with the use of the Raymond A. O’Daniell Trust to pay for the cost of replacing the library’s deteriorating roof.

Library Board Chairman Tom Hibbert said O’Daniell’s trust, approximately $578,000 given to the North Bend Library in early 1997, was intended for capital improvements such as a study room, expanded computer room or other element that would enrich the facility, located at 1800 Sherman Ave.

“My concern has always been that it will be seen as an inappropriate use of funds,” Hibbert told the council.

Retired attorney Benton Flaxel, who had represented O’Daniell and his estate, and came to the meeting at the library board’s urging to clarify the intent of O’Daniell’s will and trust, agreed with the board’s interpretation.

“His spirit will be very uneasy if you use this for maintaining the building,” Flaxel said.

Flaxel said O’Daniell, who died in April 1996, was a great patron of the library and had given one of the single largest gifts to an Oregon library. That gift was intended for capital improvements, not operational expenses.

“Mr. O’Daniell would want something special done with the funds to make the library useful in a way it’s not being used now,” Flaxel said.

According to a letter to the council from the board, which Hibbert read aloud, board members do not agree with the city’s interpretation of the will via a memorandum written by Attorney David Koch. Koch’s memo, based on only one page of the will because city staff were unable to locate the entire document, contends that an expenditure to replace a roof would be considered a capital improvement.

“Although we respect the City Attorney’s memorandum stating that it’s permissible to spend O’Daniell funds for replacing the roof, all of our board members view the roof replacement as a city of North Bend responsibility. We believe that using O’Daniell funds may be contrary to the wishes of the donor,” the library board letter states. “We believe Mr. O’Daniell would have wanted his great gift to the library to be spent for more appropriate improvements for the public.”

The board also contends that because the city owns the library building, “the city needs to maintain the library building and must budget for its maintenance and repair.”

The board recommended that if the city cannot provide funds for replacing the roof from its current budget, that it take out a low-interest loan, use money from the city’s urban renewal fund or pay for the roofing project through a bond measure.

Approximately $225,000 remains of the O’Daniell trust, said Library Director Gary Sharp. Allocated to the North Bend Public Library Donation Fund, which contains about $335,000, the money was recently supplemented by a $25,000 grant from the Collins Foundation in Portland, which is specifically for the library roof. He said he has applied for an additional grant and will be submitting an application for a third before the end of the month.  

The O’Daniell funds were tapped in 2001 to expand a portion of the library’s children’s room, to build a bathroom and a staff workroom.

While he understands and appreciates the library board’s concerns, Sharp said he agrees with the city attorney.

“If you look at the language in Mr. O’Daniell’s will, it says it can be used for capital improvements to the library structure or to obtain library furnishings and equipment or both,” Sharp said on Wednesday, adding he believes councilors will respond to the issue at its next work session in February. “I personally knew Mr. O’Daniell myself and I don’t think he would have a problem with us using it for a new roof.”

Plans for the roof include covering it with a polyvinyl membrane that comes with a 20- to 25- year warrantee. It is expected to cost about $204,000, Sharp said, and city officials hope to start repairs this summer.

 “It would be an improvement that would protect all of the books and other resources of the library building,” Sharp said. He noted he believes the issue will be resolved through further discussion.

“I think the board and the city council are trying to do their best for the library to make sure we get a new roof. They have both said it is a very high priority and they want to see it done as soon as possible.”

After Flaxel and board members completed their comments at the work session, Mayor Rick Wetherell said he would take their views under consideration.

“We will debate this thoroughly,” Wetherell said, thanking the board for giving him a different perspective.