Minutes from the Regular Meeting of the Legislative Council held in the Municipal Board Room in the Newtown Municipal Center, 3 Primrose Street, Newtown, Connecticut, on Wednesday, January 20, 2010. In the absence of Chairman Jeffrey Capeci, Vice-Chairman Mary Ann Jacob called the meeting to order at 7:30 pm.
PRESENT: Jan Andras, George Ferguson III, John Aurelia Sr., Kevin Fitzgerald, Chris LaRocque, Richard Woycik, Mary Ann Jacob, Benjamin Spragg, Daniel Amaral, James Belden and Gary Davis.
ABSENT: Jeffrey Capeci
ALSO PRESENT: First Selectman Patricia Llodra, Finance Director Bob Tait, 3 members of the public and two auditors from Kostin, Ruffkess & Company, LLC.
PUBLIC PARTICIPATION: none
APPROVAL OF THE MINUTES of January 6, 2010: The motion by Ms. Andras to approve the minutes of January 6, 2010 and the second by Mr. LaRocque were tabled until the next meeting as Mr. Ferguson indicated he was not able to review the minutes as he never received them via email.
COMMUNICATIONS: none
COMMITTEE REPORTS:
Finance Committee - Mr. Spragg, Chairman of the Finance Committee, reported that the Finance Committee met prior to the meeting that evening and went over three items. Two pertained to the audit: the acceptance and the reappointment of the town auditor; and the third item was the budget amendment. According to Mr. Spragg, the budget will be submitted to the Board of Finance by the Board of Selectmen and the Board of Education soon, and noted he request that the chairs of the sub-committees email their recommendations to him on the budget by March 30, 2010 so that the chairs can submit their final recommendations to the council April 6, 2010.
Ordinance Committee - Mr. Ferguson, Chairman of the Ordinance Committee, reported that the Ordinance Committee met on January 11, 2010. He told the council that the committee discussed the modification of Purchasing Regulation #4 and had a preliminary discussion regarding the status of the Newtown Code book. Mr. Ferguson was disheartened to note that the minutes and motions were submitted within the 48 hour period but were apparently not posted. He indicated he was checking to see how the posting slipped through the cracks.
Education Sub-Committee – Mrs. Jacob informed council members that the sub-committee met last week and got organized for the budget planning season. She noted that following a meeting with Superintendent Janet Robinson they identified that some of the drivers of the increase to the school budget were as follows: the owner operator bus contract which was an increase of 4.5% and counts for two thirds of the buses; a low approximate 65% reimbursement for special education this year from the Excess Cost Grant versus the typical annual reimbursement of 90% to 100%; the return of three furlough days which were taken away last year; and a significantly higher insurance rate. Mrs. Jacob noted that Dr. Robinson thinks self insurance might be the way to go. To give insight to her report, Mrs. Jacob provided the
council with a copy of the Newtown Board of Education Monthly Financial Report dated December 31, 2009 answers how they are going to meet budget short fall. She informed the council that the schools put a stop on spending in: building and repair accounts approximately $200,000 and supplies approximately $200, 000; and about $100,000 savings in the workman’s compensation account with some other smaller savings. Mrs. Jacob indicated that the Board of Education approved their CIP and it will be reviewed by the Board of Finance on Monday; and she added that the format was being reworked similar to that used by the Board of Selectman with the only the backup information coming from each source being slightly different. Mrs. Jacob concluded that the superintendent will present her budget to the board January 26 with three deliberations dates on the January 28, February 2 and February 4.
Mr. Davis suggested that for next year it would be great if Mr. Tait would work with business manager to make sure everything is uniform.
FIRST SELECTMAN’S REPORT:
Mrs. Llodra told council members that she had a few items. The first was a microphone lesson in which she coached council members on the most effective way to use the new municipal room’s microphones. The second item she addressed was the need to promote training and support for all the newly elected officials regarding FOI regulations and working with them on parliamentary procedures. The first selectman said that a representative from FOI will be coming on March 11, 2010 to work with elected and appointed official and the regular community members. She noted a lot will be question driven.
To keep things consistent, Mrs. Llodra suggested that the boards and committees work with one template for their agendas.
Subsequently, she alerted the council about the special town meeting on Thursday, January 28, 2010 at 6:30 pm at the Senior Center, 14 Riverside Road, Sandy Hook, regarding the adoption of a resolution providing for a special appropriation of $3.5 million to reimburse Newtown Youth Academy for costs relative to parking facilities; to consider and act upon recommendation to adopt resolution with respect to authorization , issuance and sale of $3.5 million in general obligation refunding bonds; and to transact any other business. The first selectman said she understands the concerns regarding the $3.5 million amount and its origin and said she wants to address that concern and make sure the Town never goes down that road again, but indicates they are not acting on that issue at the meeting on January 28. Mrs. Llodra
said the issue surrounds the fact the town is paying 6% on the bond and has a chance to pay 3.5% ultimately saving the town approximately $1.1 million. She indicated that the Board of Selectmen committed last night to writing the charge for a group that will be constituted to look at the Fairfield Hills Master Plan.
According to the first selectman, the $3.5 million was for the transaction to take down Greenwich Hall at Fairfield Hills and put in a parking lot.
After a brief question and answer session, members of the council and the first selectman agreed that future action to prevent such a situation from happening again was in order.
Finally, Mrs. Llodra passed a sheet to each of the council members regarding the budget review dates for the Board of Selectmen – Tuesday, January 26 at the Senior Center; Thursday, January 28, at the Senior Center; and Monday, February 1, in the Municipal Board Room. She noted that this will allow the Board of Selectmen to spend time where it’s most needed.
COMMITTEE REPORTS (Continued):
Administration Sub-Committee – Mr. Davis, chairman of the Administration Sub-Committee, reported that the committee has been trying to meet and said they are tasked to make sure budget deliberations are videotaped, and broadcast on Channel 17 and possibly on UTube. According to Mr. Davis the control room in the Municipal Board Room is almost complete and indicated that everything should be ready prior to February 3, allowing them time to do a dry run. In addition, he noted that the closed loop for the hearing impaired is now operational. Mr. Davis said he attended a Hearing Loss of America Southwest CT Chapter meeting this weekend and it was very helpful he noted they were very impressed with the work the Town was doing to help the hearing impaired. Finally, Mr. Davis gave kudos to Mrs. Llodra
for moving the communications network along and commended Technology and GIS Director, Scott Sharlow, schools Director of Technology Carmella Amodeo, and Greg Vanantwerp from Charter Communications for all the work they have done. Mrs. Llodra remind Mr. Davis that Feb 8 the Board of Selectman makes their presentation to the Board of Finance and is only the time the whole package is presented. Mr. Davis indicated they would try to have a dry run as well as their first broadcast meeting on Feb 8.
Public Works & Recreation Sub-Committee – Mr. Woycik, chairman of the Public Works & Recreation Sub-Committee, reported that at the last Legislative Council meeting the sub-committee was charged with reviewing the recommendations in the Ad Hoc Sub-Committees report from the previous council. According to Mr. Woycik, the committee looked at 4 specific items: identify software, track maintenance, implementing software at public works, and implementing that same software at Board of Education and Parks & Recreation. He noted that a complete study regarding the consolidation of maintenance would lead to more efficiency. Mr. Woycik concluded by inviting everyone to the next meeting. Mrs. Llodra added that tomorrow, January 21, she was holding a meeting with Superintendent Dr Robinson, the Board
of Education Superintendent of Building and Grounds Gino Faiella and Public Works Director Fred Hurley and said they would begin to develop the template in regards to the consolidation of the school and town maintenance. She concluded by inviting Mr. Woycik to the 9:30 a.m. meeting in her office.
Public Safety Sub-Committee – Public Safety Sub-Committee – Mr. Aurelia, chairman of the Public Safety Sub-Committee, were scheduled to meet in Room 3 at 6:30 pm January 21 with Newtown Police Chief Michael Kehoe, and said he would give their report at the next meeting of the council. He noted that the sub-committee would hold a similar meeting with the Fire Department and EMT’s also.
UNFINISHED BUSINESS:
Discussion and possible action on changes to purchasing regulation No. 4: Mr. Ferguson moved that the Legislative Council of the Town of Newtown modify Regulation 4, Chapter 90, of the Town of Newtown Code Book, the section relating to Purchasing and Bidding Procedures, as follows:
- Striking the following wording from Section 90-4: “provided that such a waiver is approved by the purchasing authority, which shall set forth its reasons in its minutes.”
- Changing the wording of Section 90-4 From: “Nothing herein shall limit the right of the purchasing authority to reject all bids or proposals if it deems it to be in the best interest of the town.” To: “Nothing herein shall limit the right of the purchasing authority to reject any or all bids or proposals if it deems it to be in the best interest of the town.”
Mr. Belden seconded and the motion was unanimously approved following a brief discussion.
Currently, according to Mr. Ferguson, there is no procedure in place for required updating of the code book in its printed or electronic form. He concluded saying a meeting with General Code is in the not too distant future.
Discussion and possible action comprehensive annual financial report for year ending June 30, 2009: Mr. Spragg moved to accept the annual financial/audit report for the fiscal year ending June 30, 2009. Mr. Aurelia seconded and following a presentation by the town’s auditors the motion was unanimously carried.
NEW BUSINESS:
Presentation by town’s auditors Kostin, Ruffkess on the 2008-2009 financials: Town auditors Joseph Centofani and Kristin Brown provide an in depth presentation with several handouts describing the town’s Annual Audit for the year that ended June 30, 2009. Ms. Brown handed out a three page list of recommendations for this year, but was quick to note that there were no significant material weaknesses found.
The recommendations were as follows:
- Investment Policy – expand and document those created so everyone understands what the policies are and they are followed.
- Accounting Policy and Procedure – there are policies in place and it is recommended they are formally drafted
- Journal Entries – not all standard journal entries approved by those making the entries.
- Actuarial Assumptions – the actuarial assumptions used this year should be revisited in light of the economy that has happened in the past.
Mr. Tait followed by commenting on the recommendations. He said that the investment policy was a very good idea and said that the town was following the state statutes for investment funds right now. Regarding the Policies and Procedures manual, Mr. Tait noted that the Town was at 10% and said they were working on that. He said they are working on the pension right now and the pension board is looking at other variables. As far as the journal entries were concerned, the finance director said he signed the journal entries and will review them all quarterly.
Discussion and possible action to designate Kostin, Ruffkess & Company, LLC, to audit the books and accounts of the Town as required by the General Statutes for fiscal year 2009-2010: Mr. Spragg moved to reappoint Kostin, Ruffkess & Company, LLC, as the auditor for the Town of Newtown for the year ending June 30, 2010 for the fee of $63,250 with an additional $3,000 allowance for the work to be done on stimulus grants for a total fee for 2010 audit of $66, 250. Mr. Fitzgerald seconded and following a brief discussion the motion was unanimously approved.
According to Mr. Spragg, the basic audit fee is not changing. He added that they understand the money for stimulus grants are coming in and it will require additional auditing and reporting back to the federal government. Finally he noted that they are not required to go out to bid for professional services. Mr. Tait informed the council that there are only three major firms in the state that provide the services such as Kostin, Ruffkess & Company.
Discussion and possible action Town of Newtown Budget Amendment: Mr. Spragg made the motion that the budget for the year ending June 30, 2010 be amended as follows - the total revenues be decreased by $805,979 and the total expenditures be reduced by $805, 979. Mr. Ferguson seconded and after short discussion the motion was unanimously carried.
Before the vote was cast, Mr. Spragg noted the council went over it at the last meeting passed and sheet out and said that the shortfall of the $805,979 in revenue was a reflection of the state of the economy. He noted that the first selectman and the finance director have found areas in the budget to amass $805,000 that can be reduced and that the budget amendment would remove appropriations from the various budgets. Mrs. Llodra noted that all the department heads were consulted with before making these cuts. She said she was very confident in saying that there would virtually be no impact on delivery of services and conveyed that the Town has never had to make cuts this deep. Furthermore, the first selectman said that Mr. Tait “did an extraordinary job in making that happen” and said that
only three departments said she and Mr. Tait “didn’t get it quite right.”
Discussion and possible action refer to the Legislative Council Finance Committee, the question of whether it is appropriate for the Fairfield Hills Authority and Selectmen to enter into negative leases without following the special appropriation procedures in the Town Charter: Mr. Spragg made the motion to refer to the Legislative Council Finance Committee, the question of whether it is appropriate for the Fairfield Hills Authority and Selectmen to enter into negative leases without following the special appropriation procedures in the Town Charter. Mr. LaRocque seconded and following a very brief discussion the motion was unanimously approved.
Biennial Review of Purchasing Regulation No. 4: Mr. Ferguson moved to refer the Biennial Review of Purchasing Regulation. Mr. Aurelia seconded and the motion was unanimously carried.
PUBLIC PARTICIPATION: none
ANNOUNCEMENTS: none
POSSIBLE EXECUTIVE SESSION AND POSSIBLE ACTION ON LEGAL MATTERS, LAND,
PURCHASES, EMPLOYEE MATTERS: none
ADJOURNMENT: Having no further business, Mrs. Jacob adjourned the meeting at 9:55 pm.
Ted Swigart, Clerk
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