The Board of Finance held a regular meeting on September 25, 2008 in the Conference Room in Town Hall South, 3 Main Street, Newtown, CT. Chairman John Kortze called the meeting to order at 7:30 p.m.
PRESENT: John Kortze, James Gaston, Martin Gersten, Joseph Kearney, Harrison Waterbury. ABSENT: Michael Portnoy.
ALSO PRESENT: First Selectman Joseph Borst, Financial Director Robert Tait, Schools Superintendent Dr. Janet Robinson, Schools Director of Business Ron Bienkowski, Schools Director of Grounds and Maintenance Gino Faiella, Board of Education Chairman Elaine McClure and members Kathy Fetchick and Anna Wiedemann, two members of public, two members of press.
VOTER PARTICIPATION. Ruby Johnson, 16 Chestnut Hill Road, distributed “File: FFHfuture” (Attachment A to original minutes). She is concerned about the CIP. She cited statistics from the report prepared by Doug Brennan as well as future FFH expenses that she feels should be included in the CIP. She said that the Fairfield Hills Authority is running out of money.
Ron Bienkowski, Schools Director of Business, said that on December 18, 2006 the Board of Finance established the number of $41,576,000 for the High School and that if this figure had been adjusted for inflation it would now be $48,494,000 and we would not be in this situation. He noted that all the numbers in the Board of Education’s CIP have to be adjusted each year for all projects and that all have been adjusted by 8%. He said that there needs to be a range for each project. Mr. Kortze noted that 3 ½ years ago the Board of Financed asked for the project to begin back then. If we had started back then, we may not have had the costs that we have now.
COMMUNICATIONS. None noted.
MINUTES. Upon motion of Mr. Gersten, the minutes of the regular meeting of September 8, 2008 were unanimously accepted as presented.
FIRST SELECTMAN REPORT. Mr. Borst reported the on September 23, the Board of Selectmen did not vote to approve the additional special appropriation for the High School but voted to call a town meeting on October 1 to adjourn and go to referendum on October 7. He noted that the Town received a check from Strategic Building Solutions for $25,500 for the law suit so that now the Board of Education can pursue additional revenue from the State at 34.5%. He has signed letters of intent for the Town Hall project and the Notice to Start Construction was signed today.
Mr. Gaston asked Mr. Borst if anyone from Queen Street had contacted the Board of Selectmen about sidewalks. Mr. Borst said that Mike Floros had contacted him and Mr. Borst advised Mr. Floros to put his request in writing. Mr. Gaston noted that for eight years there has been a plan for sidewalks to connect Middle School to Reed School. He said that the loop that was put in was a Town project that the Borough contributed to.
Mr. Kortze noted that there are difference in the amounts between similar items in the Town Hall and High School bids. He understands that the majority of the Town Hall project is labor, but he said that the majority of the items that were over in the High School are not consistent in the Town Hall bid (steel, HVAC and electrical). Mr. Gersten said that the escalation factor is out of whack and that the Town Hall was off by 3-4% but the High School was off by 20%.
In response to an inquiry about bid dates by Mr. Kortze, it was noted that the High School went out to bid in June and the Town Hall the end of July. Mr. Tait noted that we do not have the details for the High School bids; Mr. Kearney said that we do not have the unit costs.
FINANCIAL DIRECTOR REPORT. Mr. Tait noted that Mrs. Johnson had reported that a $1.2 million cost for the Town Hall was in addition to the $10.7 million, but he said that the $1.2 million is included in the $10.7 million. He also noted that the interest rate for current bonds is 4% but it may be 4.35%.
NEW BUSINESS.
Board of Education Capital Improvement Plan (CIP). (Attachment B to original minutes). Mr. Bienkowski said that everything has been moved out either one or two years to accommodate the High School project and 8% inflation has been added to each figure. Additions to the plan are $550,000 in Year 1 for portables for the High School and $6,045,000 in Year 2 for additional funds for the High School. He said that everything was moved out to keep under the 10% cap. We moved off the chart the Head o’Meadow water line and High School auditorium.
Mr. Gaston questioned whether 16% rather than 8% was added to the Hawley HVAC. Mr. Kortze agrees and believes that the figure should be $9 million not $9.58 million. Mr. Bienkowski said that we added another 8% because we moved it out another year. Also to anticipate higher costs. Mr. Kortze asked if the Board of Education is comfortable with a bid that is that old. Mr. Gersten asked what is the cost for the High School by moving all other items out another year. Mr. Kortze asked did the Board of Education quantify what the cost would be by moving everything out; there is escalation. Mr. Bienkowski said we did not quantify this. Mr. Kortze said that bonding will be starting out another year. Mr. Kortze asked if when moving things around the Board of Education considered whether some things could be done sooner and
more timely. Mrs. McClure said that the Board discussed leaving the Middle School roof in the same year and it was not approved; Mrs. Fetchick said it was also discussed to move the Middle School roof one year earlier but this did not pass. Mr. Kortze asked if there was discussion about savings and impact to the Plan in moving things forward. Mr. Bienkowski said that these are individual project numbers, not total numbers. Mr. Kortze asked what is the rationale in moving the Middle School roof out another year; is a leaky roof not as important and Hawley HVAC?
Mr. Kortze suggested that the Boards of Education and Finance have a joint meeting to discuss these issues, such as how can the Board of Ed say we will be below the 10% as the Town has large projects coming up. Mrs. McClure said that the Board of Education would be happy to meet with the Board of Finance and that the Board of Ed is operating in a vacuum. Mr. Kortze said that one reason that we are up against it with the High School is because we have not had these discussions. He suggests including the Board of Selectmen in the joint meeting to discuss the CIP and discussing doing things sooner. Mr. Bienkowski said that the roof is a manageable problem that is taken care of; Mr. Kortze suggests stating this in public participation. Mr. Bienkowski said that the Board of Ed feels that this CIP will keep the Town under
the 10% cap because he said it has been the perception for years that the Board of Ed’s projects have been the numbers that pushed the cap.
Funding of the $550,000 for the portables was discussed; bonding or part of the operational budget. Bonding is planned. Mr. Tait said that the bonding schedule will not change if the High School project is approved.
Transfer for Town Hall Salary Adjustment. Mr. Gersten moved to transfer from Account 01100-1073 Town Hall Salary Adjustment $44,248.00 to Various Accounts $44,248.00. Second by Mr. Kearney. Mr. Borst explained that this represents a 3% increase for non-union employees. Motion unanimously carried.
UNFINISHED BUSINESS.
General Fund, Unreserved Fund Balance Policy (Attachment C to original minutes). Mr. Gaston moved to adopt “General Fund, Unreserved Fund Balance Policy’ revised September 10, 2008. Second by Mr. Kearney and unanimously carried.
Current and Proposed Guidelines for adoption or re-affirmation. This item will be carried forward to consider the Reserve for Capital and Non-Recurring Fund Policy.
Mr. Kortze noted that after the Board of Selectmen present their Capital Improvement Plan, we can look forward to a joint meeting between the Boards of Finance, Selectmen and Education to act on the CIP. Dr. Robinson said that a time will be set up.
ADJOURNMENT Having no further business, the meeting was adjourned at 9:25 p.m.
Ann M. Mazur, Clerk
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