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Calibre can't, on its own, convert library books for the Kindle; Calibre can't do anything with DRM'd ebooks. (You may be able to find a third-party plugin for Calibre for this. Otherwise, there are other methods to remove the DRM, and the book can be converted.)
Calibre will convert non-DRM'd epub books to the Kindle format. (Mobi/prc.)
Note that stripping DRM from library books is a contentious issue; some believe it's illegal; many believe it's only ethical if you remove the ebook promptly when the two weeks are up. Some believe it's not legal or ethical, no matter how it's done.
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