The Board of Finance held a regular meeting on Thursday, May 22, 2008 in the Meeting Room, Town Hall South, 3 Main Street, Newtown, CT. Chairman John Kortze called the meeting to order at 7:30 p.m.
PRESENT: John Kortze, Joseph Kearney, Michael Portnoy, Harrison Waterbury. ABSENT: James Gaston, Martin Gersten.
ALSO PRESENT: Financial Director Robert Tait, Board of Ed Superintendent Dr. Janet Robinson, Board of Ed Director of Business Ron Bienkowski, Board of Ed members Kathy Fetchick and David Nanavaty, Parks & Recreation Commission Chairman Ed Marks, Registrar of Voters LeReine Frampton, one member of press.
VOTER PARTICIPATION.
MINUTES. Upon motion of Mr. Portnoy, the minutes of the regular meeting of March 10, 2008 were unanimously accepted as presented. Upon motion of Mr. Portnoy, the minutes of the regular meeting of March 27, 2008 were unanimously accepted as presented
COMMUNICATIONS. Mr. Kortze introduced Financial Director Bob Tait. Mr. Kortze was a member of the Committee to evaluate and interview candidates to replace Mr. Spragg. He commends Human Resources Director Carole Ross for presenting three very highly qualified candidates. He feels that Mr. Tait is very highly qualified and is the right kind of fit for Newtown.
FIRST SELECTMAN REPORT. Mr. Borst was not present.
FINANCIAL DIRECTOR REPORT. Mr. Tait distributed “Town of Newtown – Budget -05/22/2008” (Attachment A to original minutes). He noted that he plans to prepare financial reports in a new format and used the steam pipe project as an example of this format.
UNFINISHED BUSINESS. None noted.
NEW BUSINESS.
RESOLVED: That the resolution entitled “Resolution Appropriating $3,150,000 For Various Public Improvements And Authorizing The Issuance Of $3,150,000 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, is hereby adopted and recommended to the Legislative Council for consideration and action. Mr. Portnoy moved to waive the reading of the resolution and to move the resolution entitled “Resolution Appropriating $3,150,000 For Various Public Improvements And Authorizing The Issuance Of $3,150,000 Bonds Of The Town To Meet Said Appropriation And Pending The Issuance Thereof The Making Of Temporary Borrowings For Such Purpose” is
hereby adopted and recommended to the Legislative Council for consideration and action. Second by Mr. Waterbury for discussion.
Mr. Bienkowski distributed “Steam Line Replacement Newtown Middle School” (Attachment B to original minutes.).The steam pipe replacement would be funded under this special appropriation in the amount of $850,000. He said that the Board of Ed is doing the best that they can to move this along as expeditiously as possible so that the project can be done over the summer. They would like to have the funding in place in order to award the contract by July 11 and have the project completed by September 20. There will be no heating source for the rest of the building while this is being done. A temporary boiler could be placed outside the cafeteria at a cost of $10,000 to $20,000, but we would like to avoid this situation and its costs. The Board of Ed hired a professional cost estimator who estimates the cost to be
$827,805.
Alternate #1 would be for removal and installation of new concrete pads and pumps at a cost of $32,432.
Alternate #2 is for studs and drywall for soffits in the classrooms at a cost of $9,197.
Alternate #3 is for temporary water heaters and propane for heat that goes into the cafeteria at a cost of $28,387. We will not know the condition of these lines until we are about 30% along,.
Mr. Bienkowski said that if we go beyond November we will probably have to rebid the project. He would like the town meeting set for sometime in June.
If the costs exceed $850,000, Mr. Bienkowski said that the Board of Ed will delay some repairs and maintenance. Some money may be saved because we have not moved into the new Town Hall. Mr. Kearney asked if the $2,800 architectural fees would come out of the project if the bids come in less than $850,000. Mr. Bienkowski said no because the project costs will come out of next fiscal year and the architect’s fees are a cost from this fiscal year.
Mr. Kortze said that the bid plus alternates total $900,000 and does the Board of Ed expect to do all of this for less than $850,000. Mr. Bienkowski said that this depends on the bids. He said that if the bids come in for more than $850,000, the Board of Ed will pick up the tab. Mr. Kortze asked if the money gets there based on the referendum or what we do tonight; Mr. Bienkowski said the town meeting. Mr. Kortze said that the resolution is such so that we cannot go over $850,000.
Mr. Kearney asked why can’t the Board of Ed get a bid in advance of the process. Mr. Bienkowski said that was our goal. He said that we did due diligence and it took a number of weeks to get the construction documents and plans and that the documents are out to bid now and are due back on June 26. Mr. Kortze asked what the harm would be in waiting until we get the bids back? Mr. Bienkowski said that after the bids are reviewed, the Board of Ed must come back to the Board of Finance with a number, then go the Legislative Council, then to the Board of Selectmen. The Board of Ed would like to complete most of the project over the summer. Mr. Kortze noted that this is the process in the Charter. Mr. Bienkowski said that we could forego alternates #1 and #2 if the bids are too high. Mr. Nanavaty asked if the
Town has bids on the other items in the appropriation for $3,150,000 and the one for $500,000, to which Mr. Kortze said no. Mr. Nanavaty said that this project is in the debt service and we are asking for cooperation to move this project along.
Motion unanimously passed by roll call vote YES 4 (Portnoy, Waterbury, Kearney, Kortze.)
RESOLVED: That the resolution entitled “Resolution Appropriating $500,000 For Various Public Improvements And Authorizing The Issuance Of $500,000 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, is hereby adopted and recommended to the Legislative Council for consideration and action. Mr. Waterbury moved to waive the reading of the entire resolution and to move the resolution entitled “Resolution Appropriating $500,000 For Various Public Improvements And Authorizing The Issuance Of $500,000 Bonds Of The Town To Meet Said Appropriation And Pending The Issuance Thereof The Making Of Temporary Borrowings For Such Purpose”. Second by Mr. Kearney and unanimously carried by roll call vote. YES 4 (Portnoy, Waterbury, Kearney, Kortze.)
Request by Parks and Recreation Commission for $25,000.00 from the Surcharge Account to replace the backstop at the Treadwell Park multi-purpose field. Ed Marks, Chairman of the Parks and Recreation Commission, noted that Parks & Recreation needs the authorization of the Board of Finance and Legislative Council to spend funds from the Surcharge Account. He said that repair of the backstop at Treadwell is in the Parks & Recreation operating budget this year. Mr. Tait noted that funds from the Reserve and Capital and Non-Recurring Account will be used for this project. He also noted that he plans to split this account in three ways so that Parks and Recreation has their own funds. The Board of Finance agrees that this is a good plan. Mr. Kearney moved to appropriate $25,000.00 from the Surcharge Account to
be used to replace the backstop at Treadwell Park multi-purpose field. Second by Mr. Portnoy and unanimously carried.
Transfer - Police Account #0020116 Increase Revenue $30,000.00 and Account #001315-1008 Increase Private Duty $30,000.00. Mr. Kearney moved to increase revenue account #002-0116 $30,000.00 and to increase Account #001315-1008 Private Duty $30,000.00. Motion seconded by Mr. Waterbury and unanimously carried.
Transfer – Police FROM Account #01310-1003 Sworn Personnel $35,000.00 to Account #01310-1005 Police Overtime $35,000.00. Mr. Kearney moved to transfer from account #01310-1003 Sworn Personnel $35,000.00 to Account #01310-1005 Police Overtime $35,000.00. Second by Mr. Waterbury and unanimously carried.
Mr. Kearney asked Mr. Tait if we could meet with Moody’s as sooner as possible because we have removed a credit weakness cited by Moody’s by a Charter change that will allow use to be able to manage our surplus. He feels that we should call the rating agency on this. Mr. Tait said tat we will ban and could wait until December to bond for the High School. He said we may have an August time frame for that.
Mr. Tait would like to bring Non-Recurring Funds back into the General Fund by June 30 because the rating agencies will be looking at the General Fund. He agrees that the rating agency should be contacted concerning the new policy.
ADJOURNMENT Having no further business, the meeting was adjourned at 8:30 p.m.
Ann M. Mazur, Clerk
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