The Board of Finance held a regular meeting on Monday, November 24, 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, Joseph Kearney, Michael Portnoy. ABSENT: Harrison Waterbury.
ALSO PRESENT: First Selectman Joseph Borst, Financial Director Robert Tait, Selectman Paul Mangiafico, Town Attorney David Grogins, Schools Superintendent Dr. Janet Robinson, Director of Business Ron Bienkowski and Director of Grounds and Maintenance Gino Faiella, Board of Education Chairman Elaine McClure, Chief of Police Michael Kehoe, Director of Emergency Communications Maureen Will, Board of Fire Commissioners Chairman Kevin Cragin, Fire Marshal William Halstead, approximately eleven members of public, one member of press.
EXECUTIVE SESSION. Upon motion of Mr. Gersten, executive session was entered at 7:35 p.m. to discuss Board of Finance's consideration of action to implement legal relief or legal right as to High School Expansion and consulting architect and construction entity, Fletcher Thompson and Morganti, respectfully. Attorney Grogins and the clerk were invited to attend. Executive session was exited at 8:15 p.m.
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.
Motion failed 1-4 by roll call vote YES 1 (Gersten) NO 4 (Kearney, Portnoy, Gaston, Kortze.)
VOTER PARTICIPATION. None noted.
COMMUNICATIONS. Mr. Kortze received correspondence from Mr. Bienkowski indicating that the Middle School Steam Pipe Replacement Project was completed before the heating season commenced and at $300,000 less than the budgeted allocation (Attachment A to original minutes).
Mr. Kortze received an email from Bruce Walczak (Attachment B to original minutes) concerning freedom of information. Mr. Walczak felt that Mr. Gersten’s motion should have been a part of the regular agenda. Mr. Kortze said that he was not aware of the motion until Mr. Gersten presented it to him at the meeting.
FIRST SELECTMAN’S REPORT. Mr. Borst had no report.
FINANCIAL DIRECTOR’S REPORT. Mr. Tait will present a report concerning theCapital Improvement Plan.
UNFINISHED BUSINESS
Discussion and Possible Action: Town wide Capital Improvement Plan. Police Chief Kehoe explained that the funds requested in the CIP for the radio enhancement project is to change the present system from analog to digital which will make Newtown compatible with neighboring towns who are on the digital system. Also the digital system will be more environmentally friendly and will last longer. Ms. Will said that upgrades will be needed to the channel banks during 2010-2011. Mr. Kortze noted that this amount is below the CIP threshold and asked Mr. Borst if the Board of Selectmen had discussed why this is in the CIP to which Mr. Borst replied that they had not discussed this. Chief Kehoe distributed “Space Needs Assessment for the Newtown Police Department, Newtown, CT. August 2008” (Attachment E to
original minutes) concerning the $800,000 in year 2013-14 for the design of a Police building. Mr. Kortze advised that the Police go back to the Board of Selectmen and advise them that the cost for the design is now $200,000 more than had been estimated.
Board of Fire Commissioners Chairman Kevin Cragin explained that both of the fire trucks in year 2009-10 of the CIP had been pushed out in the past, one for two years and one for three years and that both need to be replaced during that year. One is 20 years old and the other will be 28 years old; one was refurbished in 1995. Fire Marshal Bill Halstead said that there are new requirements for emissions that will add about $20,000 to each truck after 2010. The trucks to be replaced will not have to meet this requirement if they are replaced before that time but will have about $10,000 added to their cost. Fireman Mike Burton distributed “The Apparatus Architect” (Attachment C to original minutes). He said that no new purchases are anticipated after these trucks until 2018.
High School Expansion Project Update. Dr. Robinson said that the Board of Education will discuss the break down of the bid packages with Fletcher-Thompson and Morganti next Tuesday. Ms. McClure said that the Board of Education would like to get the lowest prices. Mr. Kortze noted that Public Building and Site Commission Chair Bob Mitchell as well as Morganti and Fletcher-Thompson recommended waiting 4-6 months to rebid. Mr. Kortze asked Ms. McClure if the Board has entertained doing this sooner; Ms. McClure said that the consensus is to get the right price and that the Board will ask for unit prices. Mr. Kortze noted that the ed specs are determined by the Board of Education and that the timing is determined by the Board of Selectmen.
Mr. Bienkowski said that it will cost about $250,000 to take us forward to the next rebid. He said that we need documentation from the School Facilities Unit (SFU) saying that we can go out to bid again. Mr. Kearney asked if Morganti and Fletcher-Thompson are inextricably tied to the process or could one or both be replaced. Mr. Bienkowski does not know what it would cost to hire another firm with no knowledge of the job. He said that the $250,000 breaks down to $25,000 to $50,000 for printing, re-advertising and new drawings and $184,000 for Fletcher-Thompson. Mr. Bienkowski said that Morganti has been paid $155,500 to date and will receive 2.5% of the total construction costs; he feels that we would lose momentum if we look into hiring someone else. He said there is discussion about reducing the 2.5%
to 2.0% and that we need just cause to terminate the contract.
Ms. McClure said that the original alternates were: track and field, lightning protection, paint blocks to the ground and the Allterton system. The driveway access relocation will be Phase III. New alternates proposed are the tennis courts and the gym basement. Mr. Bienkowski said that the driveway should cost $400,000 with value management. Mr. Kortze said that we were told that all value engineering had been exhausted. Ms. McClure said that we were also told the same thing. Mr. Kortze asked are we paying $250,000 in redesign to get $400,000 in savings? He said that now we are told that there is value engineering but he feels that we are breaking out the project in pieces; how are we going to get down to $38.8 million when we only have found $500,000? He said that we are going back to the public and not
giving them all that they asked for. He asked what is the Board of Education’s rationale to spend $250,000 to save $500,000 and breaking the project into parts. Ms. McClure said that the storage area below the gym is what we took out. Mr. Kortze asked if the Board of Education is going through the exercise or legitimately trying to get to $38.8 million. Dr. Robinson said that she has seen how the Board of Ed is struggling with this. Mr. Kearney said that we need more bidders and that we should get the unit costs. Mr. Gaston said that the public does not believe that this is a $44 million project. Mr. Kortze said that people voted for certain items and expect them. Mr. Gersten suggested building something that is $35 million; Mr. Gaston said that the voters approved $38.8 for the items. Mr. Portnoy asked if the estimate that rebidding would save $2 million has changed; Dr. Robinson said no. Mr. Portnoy feels that it is slight of hand to count Phase III in the $38.8 million.
Ms. McClure said that the Board of Ed is not trying to do this. Dr. Robinson said that a redesign would mean that the project would have to meet LEED standards.
Board of Education CIP. Mr. Bienkowski said that the new figures for the Middle School roof and Hawley HVAC are $300,000 more favorable. Mr. Kortze asked Mr. Bienkowski if he has figures for the cost of having the Town replace the Middle School roof vs. bidding the project as discussed at the last Board of Finance meeting. Mr. Bienkowski would like to use the present figures for accuracy in case we go out to bid. Mr. Tait said that the roof could be in 2010-11 and Hawley HVAC in 2012-13 in the CIP.
Budget increases. Mr. Kearney would like contractual increases only for next year. Mr. Gaston said we could look at the rolling average for the last five years which is 5.75%, or if we used the past four years and use the projection for next year as the fifth year the increase would be 5.25%. Mr. Gersten said that the increase should be dramatically austere. Mr. Portnoy suggested a rolling five year average or 5.75%. Mr. Kortze would like the increase to be the bare minimum with 5.25% as the highest with reduced indebtedness.
NEW BUSINESS
Report on Board of Education strategic planning committee will be tabled.
Discussion and possible action on resolution of timing of re-bid of high school addition will be tabled.
MINUTES. Upon motion of Mr. Gersten, the minutes of the regular meeting of October 23, 2008 were unanimously approved as presented. Upon motion of Mr. Gersten, the minutes of the regular meeting of November 5, 2008 were unanimously approved as amended by Mr. Gaston as follows "After the re-bids come back he would not be opposed to another referendum". To what I recall saying~which was "Depending upon what the re-bids come back~at, I would not necessarily be opposed to another referendum".~ I think my sentiments were similar to Harry Waterbury's~...ie., it is too early to tell whether another~referendum would be advisable. Upon motion of Mr. Gersten, the minutes of the regular meeting of November 10, 2008 were unanimously accepted as amended by Mr. Gaston.
ANNOUNCEMENTS. None noted.
ADJOURNMENT. Having no further business, the meeting adjourned at 10:26 p.m.
Ann M. Mazur, Clerk
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