302 Main Street Old Saybrook, Connecticut 06475-1741
BOF MINUTES REGULAR MEETING JANUARY 7, 2014 7:00 P.M. First Floor Conference Room |
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BOF Attendant Members Absent Members
David LaMay, Chairman John O’Brien
Brad Thorpe, V. Chairman Barry O’Nell
Tom Stevenson
Breck Lindley (via phone)
Greg Gernhardt
In Attendance
Carl Fortuna, First Selectman
Steve Gernhardt, Selectman
Lisa Carver, Finance Director
Bob Fish, Treasurer
Michael Spera, Chief of Police
Don Lucas, Building Inspector
Gerri Lewis, Clerk
Mr. LaMay called the meeting to order at 7:02 p.m.
Mr. LaMay led in the pledge.
None
IV. APPROVAL OF MINUTES 12/17/2013
Mr. LaMay asked for a motion to approve the minutes.
A Motion was made by Mr. Stevenson and seconded by Mr. Thorpe to approve the December 17, 2013 minutes.
Discussion: Mr. Gernhardt felt that his comment should be mentioned regarding the importance of “….environmental safety and health standards…” Motion passed.
V. DISCUSSION AND POSSIBLE ACTION ON RECOMMENDING TO TOWN MEETING AN APPROPRIATION OF $80000.00 TO TOWN MEETING FOR HAZMAT REMOVAL AND MASS DEMOLITION OF THE STRUCTURE AT 225 MAIN STREET, FORMERLY KNOWN AS THE OLD SAYBROOK POLICE STATION. ~
Selectman Fortuna gave a brief synopsis of the charge of the past police building committees. He discussed briefly the condition of the old PD and commented that eventually the police building will come down.
Mr. Fortuna reported on the bid specs for demolition of the old police station and noted there were seven (7) bids. He reported that the winning bid is a contractor that does a lot of remediation jobs. The bid was $66,800 for hazmat and demolition. Mr. Fortuna noted that he put in a contingency of $5k, approximately 7%. Downes Construction will be the construction manager, charging $4,490.
Mr. Fortuna explained that part of the money was coming from a bond premium. He explained that a bond premium occurs when the “stated” interest rate on the bond exceeds the “yield” or “market” interest rate on that bond. Bond premium is a frequent occurrence when interest rates are very low. Purchasers often want to purchase the bond with a stated interest rate higher than the market interest rate. They do so to retain the ability to sell their bond in the future if rates go up, when having a higher stated interest rate on the bond makes it more attractive than if the interest rate were at the lower, market interest rate.
Mr. Fortuna noted that when the underwriter purchased the OS bonds in October, 2013, most of the interest rates were higher than the market rates, creating a net premium of approximately $46k paid to the Town at closing. He will use those funds toward the demolition.
Mr. Stevenson inquired regarding local contractors and the possibility of the BOS sending out thank you letters and how to be better bidders. Mr. Gernhardt inquired about the reserve fund. It was noted that the Capital non-recurring fund held $250K and that $125k belonged to the Fire Department. Ms. Lindley inquired regarding the use of the money. She also had questions regarding the bonds. Mr. Fortuna explained the appropriation of monies. Mr. Gernhardt inquired if there were any other uses for the money other than the appropriation to which Mr. Fortuna replied in the negative. He also noted that if there is any money left, it would go into the Undesignated Fund Balance.
There being no further discussion, Mr. LaMay asked for a motion. The following motion/resolution was made by Mr. Thorpe and seconded by Ms. Lindley:
BE IT RESOLVED, that the Board of Finance recommends that the Town appropriate
$80,000.00 for the demolition of the former Police Facility at 225 Main Street, in accordance
with the Old Saybrook Police Department Conceptual Budget Report prepared by Downes
Construction Company dated July 29, 2013 (the "Report"). The appropriation may be expended
for demolition and disposal costs, site restoration and improvements, materials, equipment,
professional fees and other costs related to the project. The appropriation shall include any
federal, state or other grants-in-aid or other funds received for the project. The Board of
Selectmen may reduce or modify the scope of the project, and the entire appropriation may be
expended on the project as so reduced or modified.
FURTHER RESOLVED, that the Town finance the appropriation by (i) using $45,900 of
premium received on the sale of the Town's bonds issued for the new Police Facility and other
capital projects, and (ii) using $34,100.00 of monies available in the Town's Reserve Fund for
Capital and Nonrecurring Expenditures. Motion passed unanimously.
VI. FINANCE DIRECTOR REPORT
Ms. Carver reported on the following:
- Billboard that Heather McNeil had discussed at her meeting with the BOF; Mr. Thorpe had inquired regarding the costs: Cost: $1,100; covered by donations.
- Increase in health insurance; working with Brown & Brown who is seeking other proposals.
- Working on the budget.
Mr. LaMay thanked Ms. Carver for her report.
A motion was made and seconded to add “Selectman’s Report” to the agenda.
VII. SELECTMAN’S REPORT
Mr. Fortuna reported on the union negiations with Police; Supervisors Union and Support Union Contracts were due soon. Mr. Thorpe inquired as to the overall cost. Mr. Fortuna also noted that the town meeting agendawill have the demolition of the old PD; new fire engine; pedaling ordinance; fire alarm ordinance and updates on Land Use ordinances.
Mr. LaMay thanked Selectman Fortuna.
VIII. TREASURER’S REPORT
Mr. Fish presented the monthly report on the general fund operating budgets, noting that we are presently half way thru the year and are on target with expenditures. He noted that the revenue side seemed normal. He reported that taxes were coming in well.
Mr. Fish passed out two documents/books. One being the Federal Single Audit and State Single Audit of the Town of Old Saybrook; the other being the Annual Financial Report of the Town of Old Saybrook. He highlighted, noted and directed the board to the financial statements, balance sheet for all funds; income statement for all funds; schedule of general fund revenues and expenditures; tax collector report; balance sheets for non-budget funds; income statements for non-budget funds. He also noted that there were no material weaknesses or significant deficiencies identified in the Federal and State Single Audits.
These reports can be seen in the Selectman’s Office or the Treasurer’s Office.
VIII. COMMENTS FROM THE CHAIR
Mr. LaMay had no comments. He told the Board that Mr. Maynard, Tax Collector would be at the next meeting. He noted that if there were any department heads they wanted to see, to kindly let him know.
Mr. Lucas, Building Inspector, was at the meeting regarding his memorandum which he noted 4 areas that were over budget. Vacation & sick time; over time; vehicle maintenance; and Personnel. Mr. Lucas noted that he was about $12K over budget. Mr. LaMay invited Mr. Lucas to come to the next meeting. Mr. Stevenson inquired about hiring another person. Mr. Thorpe commented about slow times.
Mr. LaMay asked Ms. Lewis to put Mr. Maynard and Mr. Lucas on the agenda for the next meeting.
IX. ADJOURNMENT
A motion to adjourn was made by Mr. Thorpe at 8:31 p.m. and seconded by Mr. Stevenson and it was so voted unanimously.
Submitted:
Gerri Lewis, Clerk
This meeting in its entirety is recorded on disc in the Town Clerk’s Office.
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