The Board of Finance held a regular meeting on Monday, November 10, 2008 in the Conference Room of 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, Michael Portnoy, Harrison Waterbury. ABSENT: Joseph Kearney.
ALSO PRESENT: First Selectman Joseph Borst, Financial Director Robert Tait, Schools Superintendent Dr. Janet Robinson, Schools Director of Business Ron Bienkowski and Director of Grounds and Maintenance Gino Faiella, Parks and Recreation Commission Chairman Ed Marks, two members of public, one member of press.
VOTER PARTICIPATION. Ruby Johnson, 16 Chestnut Hill Road, distributed information concerning the Capital Improvement Plan (Attachment A to original minutes). She suggested that the Town consider a 30 year plan and look at Planimetrics data through 2030. She discussed does economic development lower taxes.
COMMUNICATIONS. None noted.
MINUTES. Upon motion of Mr. Gersten the minutes of October 14, 2008 were unanimously accepted with Mr. Kearney’s changes (Attachment B). Upon motion of Mr. Gaston, the minutes of October 22, 2008 were unanimously accepted as presented.
FIRST SELECTMAN’S REPORT. Mr. Borst reported that the Department of Defense (DoD) is discussing with the Town placing a BRAC (Base Reduction And Closure) facility in Newtown. The DoD would close some facilities in Connecticut and combine them into a facility in Newtown. They are looking at either the east or high meadow of Fairfield Hills. They said that the property must be fence line to fence line with the horse guard facility and feel that this area would be the most appropriate. Mr. Borst suggested the tech park area but the DoD declined to consider that area. Mr. Borst said that this property is on the sole source aquifer. He said that Town Attorney Grogins and Mr. Blumenthal are of the opinion that the DoD could acquire the property under eminent domain. Mr. Gaston feels that Mr. Borst should confront
this at this point and not take time to consider the matter. He noted that a similar situation existed in Rutland Vermont and was not what was it was represented to be. He feels that we must defend this pristine area and that Mr. Borst needs to be aggressive and take the initiative to oppose this. Mr. Borst noted that Selectman Rosenthal and Fairfield Hills Authority Chairman Geckle are opposed to this. He said that the tax assessor estimated a value of $7 million.
FINANCIAL DIRECTOR’S REPORT. Mr. Tait will discuss his report under the Capital Improvement Plan (CIP) discussion.
UNFINISHED BUSINESS
Capital Improvement Plan (CIP). Mr. Tait distributed proposed CIP Plans (Attachment C to original minutes) High School costs as $14.7 million in 2009-10 and $6 million in 2010-11 but noted that this could be adjusted. He presented CIP effect on future debt service with budget increases ranging from 4% to 6% with varying interest rates. His proposals place the first principal and interest payments to be delayed 12 months after bonding rather than in the same fiscal year. Mr. Kortze asked why change this; this may be viewed as extending the payment. He feels that this may be the cornerstone of why we get our bond rating. Mr. Tait said that his proposal is the normal bond procedure for all towns in Connecticut. Mr. Tait prefers the scenario of bonding the $5.380 million over ten years to start in August 2008 with the
first interest payment in February 2009. There would be a large payment the first year and less each following year. Mr. Portnoy would like to see 8% and 9% lines as in the past.
Mr. Kortze asked Dr. Robinson if the Board of Education is amenable to moving project around; she said yes, as long as it does not affect the High School project. She said that the Board of Education decided to rebid the project in March or April. She said that it would be extremely optimistic to have the shovel in the ground in the summer of 2009. She said that Fletcher-Thompson has been asked to submit a request to the State for a waiver to delay relocating the main access driveway. She said that if granted, this would become Phase III of the project. Mr. Bienkowski feels that this might possibly be delayed 2-5 years until the State reconfigures Exit 11. Dr. Robinson said that the Board of Education would plan to ask the Town for more money for Phase III unless the bids come in under $38.8 million. Dr. Robinson said
that Phase II of the project is FF&E and technology infrastructure. She said that the alternates would be the same as before. Mr. Kortze asked Mr. Tait if this would change the timing to which Mr. Tait said yes, it will be pushed out further. Dr. Robinson said that there was no consensus with the Board of Education on whether to ask for another referendum; she said that they will wait and see how the bids come in.
Mr. Kortze asked Mr. Bienkowski if he could get firm figures for the High School for 2009-10. Mr. Bienkowski and Mr. Tait will discuss this. Mr. Kortze asked Mr. Faiella if the Middle School roof is leaking; Mr. Faiella said that it is but not severely and it is not causing a problem in the structure. He noted that mold could become an issue. Mr. Kortze said that we need firmer numbers. He said that the Board of Education added to its CIP items 24% in the first year. He said we are trying to fill a gap created by the High School situation. He asked what can we do for the #2 and #3 items, Hawley HVAC and Middle School Roof. Mr. Gersten feels that we can get three or four more projects done here. Mr. Bienkowski said that the 24% is 15% for petroleum increase and 8% that we added.
Mr. Bienkowski said that we planned to do the Middle School roof with a state grant, but that this means that we need an architect to qualify for the grant. He feels that we could do the project cheaper if we did our own bid specs. He said perhaps we could use some of the Board of Ed debt service money for part of the roof and part for the HVAC. Mr. Kortze suggested that Mr. Bienkowski work with Mr. Tait to obtain more concrete numbers; that he consider where to get cash for the portables; and consider the debt service game plan. He asked that Mr. Bienkowski demonstrate how the roof project would be cheaper without the reimbursement.
Mr. Gaston questioned Mr. Borst on why fire trucks are to be bonded; he feels that they should be in the operating budget as they were in past because he considers them to be rolling stock. Mr. Tait will research whether fire trucks were bonded in the past. Mr. Kortze asked if the fire truck could be pushed back. Mr. Borst said that Board of Fire Commissioners Chairman Kevin Cragin to push one back, but that he wants them both in the same year. Mr. Tait noted that most towns bond fire trucks.
The item Police Radio Enhancement was discussed. Police Chief Kehoe will be invited to the next meeting on November 24.
Mr. Gaston suggested using a rolling average of the last five year’s budget increases to consider next year’s increase. Mr. Portnoy, Mr. Waterbury and Mr. Gersten favor using a lower number.
Mr. Kortze asked Mr. Bienkowski and Mr. Tait to provide the Board of Finance with the figures that represent next year’s contractual obligations for the Boards of Education and Selectmen.
NEW BUSINESS
Schedule of 2009 meeting dates. Mr. Gersten moved to accept the schedule of 2009 meeting dates as presented, second by Mr. Gaston and unanimously carried.
Mr. Portnoy moved to add to the agenda RESOLVED: that the Board of Finance recommends that the Board of Selectmen direct legal counsel for the Town of Newtown to review the agreements (“Agreements”) between the Town of Newtown and each of the construction manager, architects and estimators engaged by the Town of Newtown for the high school renovation and construction project (individually “Professional” and collectively “Professionals”) to determine whether the conduct of one or more of such Professionals I the performance and/or failure of performance by such Professionals of their respective duties and obligations under the Agreements: (2) constitutes a breach of one or more of the Agreements; (b) entitles the Town of Newtown to terminate such Agreement(s) without liability to the
Town; (c) entitles the Town of Newtown to seek recovery of some or all of the fees paid to one or more of the Professionals; and/or (d) entitles the Town of Newtown to see damages from one or more of the Professionals. Second by Mr. Waterbury and unanimously carried.
Mr. Gersten moved RESOLVED: that the Board of Finance recommends that the Board of Selectmen direct legal counsel for the Town of Newtown to review the agreements (“Agreements”) between the Town of Newtown and each of the construction manager, architects and estimators engaged by the Town of Newtown for the high school renovation and construction project (individually “Professional” and collectively “Professionals”) to determine whether the conduct of one or more of such Professionals I the performance and/or failure of performance by such Professionals of their respective duties and obligations under the Agreements: (2) constitutes a breach of one or more of the Agreements; (b) entitles the Town of Newtown to terminate such Agreement(s) without liability to the Town; (c) entitles
the Town of Newtown to seek recovery of some or all of the fees paid to one or more of the Professionals; and/or (d) entitles the Town of Newtown to see damages from one or more of the Professionals. Second by Mr. Portnoy.
Mr. Kortze feels that this is a relevant inquiry to make of the Town Attorney to determine whether this has been done before and what can be done. Dr. Robinson said that the Board of Education has had no public discussions about performance but that the professionals were asked about the discrepancies between the estimates and the actual bids. Mr. Kortze thought that the original contingency amount was larger than the $1.5 million before going out to bid. Mr. Bienkowski said that on February 26 the number was $1,457,000 or 5%. He said there was also a contingency for construction and design of 1%, or $288,000. Mr. Gersten feels that the margin of error was too dramatic. Mr. Gaston opposes the resolution because of potential costs and the legal situation. He feels that this action should be a Board of Education or Board of
Selectman function. He said that this puts Fletcher-Thompson, Morganti, the Board of Education and the Town in an adversarial situation. He said that we would incur attorney’s fees and would need to hire architectural and construction experts. He feels that this is premature in the project as the project may come in under bid. He said this might be appropriate in six months if the project is not done or if the bids come in high. Mr. Gersten feels that the Board of Finance should raise this issue. He feels that this is a limited inquiry and would not be costly at this time. Mr. Portnoy feels that this is asking the attorney to review the agreements and advise us of our rights.
Mr. Gaston moved to table the matter to the next meeting to be discussed in executive session. Second by Mr. Portnoy and unanimously carried.
ADJOURNMENT. Having no further business, the meeting adjourned at 9:45 p.m.
Ann M. Mazur, Clerk
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