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Lawfulness of digitizing VHS commercial movies to DVD

We recently purchased equipment that is capable of converting VHS tapes to DVDs that will be used by staff and patrons. We were initially thinking of it being used for home movies, and such, but then a staff member raised the question about the legality of converting commercial (movies, TV shows) VHS tapes to DVDs. Are there copyrighting issues involved? If it's not legal to convert them, what language can we use in our literature to make sure they are aware that it is not allowed, and any penalty that they may incur if they do? (We won't be watching them when they use the equipment.)

Thank you very much for your response!
Patron Streaming Content and Library as a Contributory Infringer
According to Motion Picture Licensing Corporation, "A library can even be held as a contributory infringer simply for allowing patrons or guests to conduct unlicensed exhibitions on site. Innocuous activities, such as patrons streaming content from Netflix, Hulu, or Amazon Prime on library computers, require a public performance license."
 
There is a lot of variations in how a patron may access these sites - on a public computer; on a personal device; on library wi-fi; on their personal device using a personal data plan... Is this referring to public library computers ONLY, or any patron device that is accessing their private streaming accounts in the public library? We have a lot of people that come in and use our wi-fi, and download episodes to watch at home. We've always treated public computers as a private space.
 
Does this mean that we have to block access to these sites or provide proactive messaging at each computer, and/or monitor their computer use?
 
Should messaging that addresses this issue be included in our wi-fi and/or computer use policy?
 
Is this something that if we provide computer screens or privacy walls we would reduce or eliminate our role as a contributory infringer?
 
Any guidance would be appreciated.
Fair Use and Restrictions of Song Parodies

We are parodying words to a popular song to create a video celebrating our library's anniversary. The song is 50 years old. We will be using the music but changing the lyrics. We will be videoing staff members singing. Can we post this video to our library website? Can we use it in public settings? Are there any restrictions on use? Thank you.
Controlled Digital Lending

I have been reading the legal arguments undergirding the Controlled Digital Lending initiative (controlleddigitallending.org). The legal arguments are outlined in the white paper here: https://controlleddigitallending.org/whitepaper.

Our library has a DVD collection that has been heavily used over the years for teaching, research, and recreational use. Circulation of that collection has been restricted to members of our campus. There are fewer and fewer DVD players available on campus now and so we are facing significant sunk costs with a collection that may become unusable. Hence, I am wondering whether we could reformat DVDs that we have purchased over the years, put those physical copies in a dark archive (i.e., no longer circulating), and stream the digitized copies one user at a time to verified members of our campus (current students, staff, and faculty). Would the doctrines of 1st sale and Fair Use apply, given that there would be a one-to-one relationship between the physical copy purchased and digital copy loaned, as well as noncommercial use?
Fair Use and the Ten Percent Rule

A teacher would like to reproduce an entire article from a published magazine. They state that because it is only 10% of the entire magazine, it falls under fair use. My interpretation has been that it is 10% of the article, since the article is a published work on its own.