The Board of Finance held a regular meeting on Monday, October 11, 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 (8:20)
ALSO PRESENT: First Selectman Herbert Rosenthal, Finance Director Ben Spragg (8:00), Board of Education Chairman Elaine McClure, members David Nanavaty and Paul Mangiafico
VOTER PARTICIPATION: None present
COMMUNICATIONS: All members received a copy of a letter from Chairman Kortze to Schools Superintendent Dr. Pitkoff regarding the Hawley School HVAC.
ACCEPTANCE OF MINUTES: Upon motion by Mr. Kearney, the minutes of the 9/12/05 meeting were unanimously accepted as presented.
FINANCE DIRECTOR REPORT: Mr. Spragg had not yet arrived.
FIRST SELECTMAN REPORT: First Selectman Rosenthal reported that the state has received a report that lever voting machines do not meet guidelines of federal legislation for handicapped accessibility because they do not allow the handicapped to vote independently. Also, they are only in one language and have no readily available manual recount. Municipalities may have to purchase new machines for the 2006 federal election. We are not certain yet of the impact because we do not know how much federal funds will be available. It could be $50,000 to $100,000 or possibly up to $400,000 depending on what type of machine we will be required to purchase. The Attorney General has asked for clarification as to whether or not the recommendation has the effect of law and is enforceable in the
state.
OLD BUSINESS
Capital Improvement Plan – Mr. Kortze stated that the Board of Finance now has both the Board of Education and Board of Selectmen CIPs. Board of Education Chairman Elaine McClure stated that they plan to prioritize the schools capital items at the next Board of Education meeting and will have them for the Board of Finance meeting on 10/27. Mr. Nanavaty advised that CES is re-working the project and plans to go back to the bidders. Ms. McClure hopes they are looking at a plan without the air conditioning but that allows it to be added in the future. It will take time but they hope to have the figures for the next Board of Finance meeting.
Mr. Nanavaty stated that the high school expansion committee is meeting on 10/24 and will have architectural drawings and projections. Hopefully, they will have something ready for the next Board of Finance meeting. He pointed out that the Hawley School HVAC project has been in the CIP for the past three years. The last three projects, the Reed School, the Middle Gate School waterline and the Head o’Meadow HVAC came in less than the estimates in the CIP. The Hawley School HVAC is the first time a project has been more than the projection. He is concerned that this Board has taken the position that when the debt service is already in the budget, that is what we have to stay with. The voters have a chance at the town meeting to decide on any additional cost.
We are looking for the Board of Finance to allow this project to go to the Legislative Council and then the town meeting vote.
Mr. Kortze gave his opinions: 1) Having three projects that have come in under projections, doesn’t make it okay for this one to be more than projected. 2) The Building Committee has approved this project twice, as presented. That committee is a part of the process. They are not in tune with the overall town finances and what we are facing. 3) Regarding letting the taxpayers decide on this project, the taxpayers have installed a process with various boards and commissions whose responsibility is to have all the data and make informed decisions.
Mr. Gaston stated that the significance of the differences in the projected and bid costs concern him. He voted for this project as a member of the climate control committee but voted against the expenditure as a member of the Board of Finance. He has questions about why the bid was so much higher than projected. He would feel more comfortable having the high school numbers in order to know what is coming.
Finance Director Ben Spragg arrived at this time.
Mr. Kearney voted for this expenditure originally because he feels that the process was followed and the bids were submitted according to the specifications. We need to let everyone know up front that if bids come in much higher than estimated, we are voting it down. He supports this project with the caveat that the “debt ceiling” is an absolute cap. If the Board of Education wants to spend an extra $2 million on this project, we will have to spend $2 million less on other projects.
Mr. Waterbury also voted for this project, assuming that the additional $2 million was coming out of another project. He feels that this project is well-enough along that it would be too difficult to “re-invent the wheel” and still doesn’t understand where the additional debt service would come from in this budget.
Mr. Portnoy realizes that the Hawley HVAC project has to be done but there is a bigger project coming up at the high school. He feels that should be the number one priority. He realizes the need to look at how Hawley can be done for a lesser amount. He felt that the bid process may have been flawed when CES said they just had the total numbers and had not yet looked at the bids.
Ms. McClure advised that the Board of Education was told that the bids expired the first week in November and that is why they voted to go to the Legislative Council when the Board of Finance did not approve the project. They did not intend to go around the Board of Finance. Mr. Bienkowski went back to the low bidder who will hold the bid until December 1. Mr. Rosenthal has advised that the earliest a town meeting could be held would be November 9.
Mr. Giarratano arrived at this time.
Mr. Nanavaty stated that December 1 gives the contractor time to hire subcontractors so that they can be available to start work during the December school break. They would then be able to finish the project during the summer break.
First Selectman Rosenthal suggested that the Board of Education not bid “lump sum” only. They could go to bid with packages or alternates so that it is easier to see how the bidders reached their bottom line. He was surprised when CES said that they could not analyze the bids because they did not have access to the books until the bids were awarded. Finance Director Ben Spragg suggested “unit cost” bidding which is what the town does for road work bids.
Ms. McClure and Mr. Mangiafico left the meeting at this time.
NEW BUSINESS
Transfer
Mr. Gaston moved to transfer FROM Account 01100-1007 Town Hall Sal. Adj. $33,609.00 TO Various Salary Accounts $33,609.00. Motion seconded and unanimously carried.
This transfer covers non-union employee salary increases of approximately 3.5%.
ADD TO AGENDA – Cost Cap Insurance – Fairfield Hills
Mr.Kearney moved to reconsider the Cost Cap Insurance for Fairfield Hills and add to the agenda. Motion seconded and unanimously carried.
First Selectman Rosenthal advised that the bids have been received for the environmental clean up at Fairfield Hills. The anticipated cost was $3 million, which was part of a bonding resolution, plus $500,000 for cost cap insurance. If the cost exceeded the self-insurance retention of $3.8 million, after that point, the cost cap insurance would pay for any eligible items in the clean up not covered under the environmental insurance. Subsequently, the bids came in two ways – unit price and lump sum. Three bidders had lowest bid on three different parts of the clean up. Fleet Environmental bid the lowest lump sum at $2.7 million. Our environmental consultant feels we should go with the $2.7 million “not to exceed” bid and
not purchase the cost cap insurance, which would be a savings.
Mr. Gaston moved to recommend not to purchase cost cap insurance for environmental clean up at Fairfield Hills. Motion seconded and unanimously carried.
Capital Improvement Plan – Selectmen
First Selectman Rosenthal has submitted the modifications to the Five Year CIP that were approved by the Board of Selectmen. Tonight, he submitted a copy of the prioritization of all bonded projects, as was requested by the Board of Finance (attached).
Chairman Kortze asked that the Board of Finance receive a cost analysis on any future proposed open space property purchases.
Having no further business, the meeting was adjourned at 9:15 p.m.
Jan Andras, Clerk
Attachment A: Bonded Project Prioritization – Board of Selectmen
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