The Board of Finance held a regular meeting on Monday, September 12, 2005 in the meeting room at Town Hall South, Main Street, Newtown, CT. Chairman John Kortze called the meeting to order at 7:35 pm.
PRESENT: John Kortze, James Gaston, Harrison Waterbury, Michael Portnoy, Joseph Kearney, Peter Giarratano
ALSO PRESENT: First Selectman Herbert Rosenthal, Schools Superintendent Dr. Evan Pitkoff, Schools Business Manager Ron Bienkowski, Grounds Supervisor Dominick Posca, Board of Education members David Nanavaty and Paul Mangiafico, Board of Education Chairman Elaine McClure (8:30), Hawley School Principal Jo-Ann Peters, seven members of public, three members of press
VOTER PARTICIPATION: Hawley School Principal Jo-Ann Peters, 26 Charter Ridge, stated that there are parents here tonight who are concerned. She realizes that the Board of Finance has a difficult job. She has first-hand experience with concerns that exist in the building. She also served on the climate control committee. She heard the suggestions for improvements to the schools regarding HVAC and learned a lot from those meetings. Hawley is the oldest school building in town. There are significant temperature differences in different parts of the building. On behalf of the students, staff and parents of Hawley, as well as the taxpayers, she urged the Board to move this project forward to the Legislative Council and then to the town meeting.
COMMUNICATIONS: None
ACCEPTANCE OF MINUTES: Mr. Gaston moved to approve the minutes of the 8/25/05 meeting. Mr. Kearney offered a correction to page 2, second paragraph, “Mr. Kearney said we should consider a Charter revision to allow for more borrowing” should read that Mr. Kearney feels that we should consider a Charter revision to take advantage of the reason cited by the bond rating commission when they stated that we might improve our bond rating even more if the Charter allowed more flexibility in managing the surplus.
FINANCE DIRECTOR REPORT: Not present
FIRST SELECTMAN REPORT: First Selectman Rosenthal advised that he has sent a memo to all departments regarding fuel consumption. He is urging employees to double up in town vehicles whenever possible and not to leave vehicles idling. This may be difficult for police officers. He is also asking departments to put off any discretionary projects until we see what is going to happen with fuel costs and whether more will be needed than is budgeted.
NEW BUSINESS
Adoption of Resolution – Hawley Elementary School HVAC System
Schools Business Manager Ron Bienkowski distributed copies of Project Cost Estimates, showing the increases from the original CIP at $2,900,000 to the June 7, 2005 figure of $3,500,000 to the 8/23/05 low bid of $5,460,000. He also distributed a Financing Impact Statement showing the increases in the debt service (copies attached to original minutes).
Mr. Brian Wetzel and Mr. Doug Lajoie of Consulting Engineering Services (CES) were present and distributed their “Opinion of Budget Cost Increases” (copy attached to original minutes). They advised that they can not give an answer on why these bids came in higher than anticipated because the contractor has not yet opened the books to them and they can only speculate.
Mr. Gaston asked if it would be viable to put in ductwork now and add the air conditioning at a later time for a possible savings of $1.1 million? He feels that the additional money for this project could mean less money being available for the upcoming high school project. Mr. Wetzel stated that the air conditioning could be an alternate bid or removed completely. The project would have to be rebid and could not be completed in this fiscal year. Mr. Lajoie pointed out that removing the air conditioning would result in a decrease now but re-bidding the project would result in an incremental increase in all of other costs based on the events that occurred over the past several weeks (hurricane disaster in the South).
Mr. Portnoy asked for an explanation of how costs could increase this much from June to August? Mr. Wetzel stated that he can not explain. The unknown in this project is the amount of overtime that might be required to meet the schedule.
Ms. McClure arrived at this time.
First Selectman Rosenthal is concerned about how far off these estimates were when we have other projects coming down the road. He asked if the Board of Education has considered taking this increase into account in the following year and possibly reconsidering other projects.
Mr. Gaston stated that we have to be looking at what future projects are in light of the fact that there are bonding limits and he feels that this Board (Finance) will hold that limit. By presenting this project, the Board of Ed is prioritizing and when later projects come forward, and we have already hit the bonding limit, this Board (Finance) may say that the Hawley HVAC was prioritized first. The upcoming high school project alone may well put the town over the bonding limit. This Hawley School project will impact what is available for the high school. He has serious concerns and it is not that the Hawley project is not needed. He feels that the Board of Education knows they have other significant projects and they need to make a
decision as to what we can afford and what they want prioritized.
Mr. Mangiafico pointed out that we don’t have detailed information on the high school. Both projects need to be done.
Board of Education members present were asked if they would like to reconsider this project in regard to future projects and come back within 30 to 60 days. Mr. Mangiafico and Mr. Nanavaty replied that they would not. Ms. McClure stated that she feels the high school is her number one priority but Hawley School HVAC absolutely needs to be done. Both are important for different reasons.
Mr. Gason moved to waive the reading of the resolution and that the resolution entitled “Resolution Appropriating $5,460,000 For Renovations To The HVAC System At Hawley Elementary School And Authorizing The Issuance Of $5,460,000 Bonds Of The Town To Meet Said Appropriation And Pending The Issuance Thereof The Making Of Temporary Borrowings For Such Purpose”, a copy of which is attached hereto, be hereby adopted and recommended to the Legislative Council for consideration and action. Motion seconded and upon roll call vote, failed: 4 NO (Kortze, Gaston, Portnoy, Giarratano) – 2 YES (Waterbury, Kearney)
The Board of Finance and Board of Education will hold a joint meeting on September 20, at 7:00 pm in the Reed School band room to discuss the CIP and bonding limits.
At this time, most people left the meeting. After they had left, Mr. Kortze remembered a comment that he wanted to make. He feels that tonight, the Board of Finance was being asked to raise the budget above what the taxpayers authorized to spend and that was inappropriate.
Resolution for Refurbishment of Two Fire Trucks
First Selectman Rosenthal stated that the Board of Fire Commissioners had requested replacement of Truck 111 in the 05/06 Budget and refurbishing Tanker 9. These are both 20 year old vehicles. The Board of Selectmen removed these from the budget and recommended them for bonding. The Board of Fire Commissioners has decided to refurbish both trucks which extends the life of the vehicles 10-15 years, at a significant cost savings over the purchase of new vehicles.
Mr. Gaston moved to waive the reading of the resolution and that the resolution entitled “Resolution Appropriating $344,000 For Refurbishment Of Two Fire Trucks And Authorizing The Issuance Of $344,000 Bonds Of The Town To Meet Said Appropriation And Pending The Issuance Thereof The Making Of Temporary Borrowings For Such Purpose”, a copy of which is attached hereto, be hereby adopted and recommended to the Legislative Council for consideration and action. Motion seconded and upon roll call vote was passed: 6 YES (Kortze, Gaston, Portnoy, Giarratano, Waterbury, Kearney)
OLD BUSINESS
Capital Improvement Plan – It was decided to discuss this at the next meeting.
Having no further business, the meeting was adjourned at 9:30 p.m.
Jan Andras, Clerk
Attachment A: Project Cost Estimates – Hawley HVAC
Attachment B: Financing Impact – Hawley HVAC
Attachment C: Opinion of Budget Cost Increases – Hawley HVAC
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