302 Main Street Old Saybrook, Connecticut 06475-1741
BOARD OF FINANCE MINUTES REGULAR MEETING OCTOBER 4, 2016 at 7:00 P.M. FIRST FLOOR CONFERENCE ROOM TOWN HALL |
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BOF Attendant Members Absent Members
David LaMay, Chairman Breck Lindley
Brad Thorpe, Vice Chairman
Tom Stevenson
Barry O’Nell
John O’Brien
Carol Rzasa
In Attendance
Carl Fortuna, First Selectman
Bob Fish, Treasurer
Lee Ann Palladino, Finance Director
Dan Moran, Facilities Manager
Call to order
Mr. LaMay called the meeting to order at 7:00 PM
Pledge of Allegiance
Mr. LaMay led the Pledge of Allegiance.
Minutes:
A motion to approve the minutes of September 20, 2016 was made by Mr. Thorpe, seconded by Mr. O’Nell. Motion passed.
Treasurer Report:
Mr. Fish passed out his monthly report. He discussed the general government budget month ending September 30, 2016. He discussed the bonded indebtedness for the general government budget as well as the board of education budget. Mr. Fish also went through the general fund revenues through September 30, 2016 for the board.
Mr. LaMay thanked Mr. Fish.
Finance Director
Ms. Palladino reported as follows:
Budget performance through September 30, 2016
Budget Fiscal Year 2017
The general government budget for Fiscal Year (“FY”) 2017 presently stands at $ 15,644,049, up $16,341 due to FY appropriations, from the FY17 budget of $15,627,618 approved at the May 2016 budget referendum.
Budget Appropriations
To date in FY17, budgetary appropriations of $16,431 were made to recognize the budget impact of the dispatcher’s collective bargaining agreement
Municipal Reserve Fund Appropriations
During FY17 appropriations against the municipal reserve fund (“MRF”) total $170,000 for the account software system, approved at the Town meeting in August 2016. Of that amount $50,000 has been transferred so far this fiscal year.
The balance of the MRF stands at $1,127,717 as of August 31, 2016, please note that not all of the expenses associated with approved appropriations have been paid.
Unassigned Surplus Fund Appropriations – There have been no appropriations against the Town’s unassigned surplus funds to date in FY17
FY17 budgeted capital outlays totaled $675,000, of which $605,000 has been transferred to various reserve accounts. The difference, $70,000, was not transferred as the projects earmarked for these funds had been identified and will be expensed at some point during this fiscal year. The balance of the various reserve funds is noted below.
Municipal Reserve Fund |
FY 2017 Transfers |
Balance 9/30/2016 |
Capital Non- Recurring Budget |
$230,000 |
$712,717 |
Fire Apparatus |
155,000 |
315,000 |
Public Works |
60,000 |
100,000 |
Catastrophic Illness |
70,000 |
183,010 |
Retirement Payout |
40,000 |
37,705 |
Revaluation |
50,000 |
80,655 |
Total |
$605,000 |
$1,429,087 |
Capital Expenditures FY 2017 has used 27% of the budgeted amount as noted below.
Department Amount Budgeted Amount Used
Fire Department $35,000 $0
Police Department $94,000 $0
IT – Town $25,000 $231
Public Works $315,000 $178,294
Total $469,000 $178,525
Authorized Transfers – none
Fiscal Year 17 Budget Performance
Through September 30, 2016, 3 months or 25% of the budget equates to $3,911,012. Actual expenditures, which are running at 28.3%, are tracking slightly ahead of budget expectations. Actual expenditures through September 30, 2016 for general government equate to $4,432,828 ahead of the three month, straight lined budget figures by $521,816. The budget lines that have expenditures in excess of 30% are attached. All budget overages are explained by timing differences or seasonal activities.
Fiscal Year 2016 vs. Fiscal Year 2015
The general government budget for FY16 was $15,258,527, or $385,522 less than FY17. When comparing the first two months of FY 16 to FY17, the current fiscal year’s budget is tracking the same, at 28%, versus this time last year.
Ms. Palladino reported that everything is in line with expectations and noted that the SunGard contract has been executed and that a training schedule has been set.
Mr. LaMay thanked Ms. Palladino.
Facilities Report:
Summary
The purpose of this memorandum is to recommend that you go to the Board of Finance to request funds to make repairs to the Town Hall (“TH”), The Katherine Hepburn Cultural Arts Center (“KHCAC”), and the Acton Public Library (“Library”).
Beginning this fiscal year, a new Director of Facilities Management, Dan Moran, was hired. As part of his initial review of Town assets, he performed a baseline assessment of each facility. During that investigation he determined that the Town presently faces three high priority projects, which are outlined in more detail on the attached pages. Ultimately, a longer-term capital plan will be created for each Town property; however, these repairs are considered an immediate need, and therefore, funds are requested to protect these assets from further damage.
The grand total of funds requested is $138,000, which is inclusive of the $131,100 estimated costs plus a 5% contingency. Outlined below are the specific funding requests:
To request funds in the amount of $22,500 to repair the HVAC ductwork at two separate locations on the roof of the Town Hall. The first unit is located on the roof above the Park and Recreation game room while the second unit is located on the roof of the Town Hall. Funds are also requested to maintain the painting of the Town Hall.
To request funds in the amount of $71,600. Of that amount, $55,000 will be used to replace the roofs on both the lower and upper sections of the Action Library. This request also includes repairs to the skylight located on the peak of the building and the replacement of two inoperative heat pumps, one in the ceiling of the Archive Room and a second on the upper floor of the building. The cost of replacing two heat pumps and to inspect and repair the remaining heat pumps is $16,600.
To request funds in the amount of $37,000 to complete the portions of the energy efficiency project that are not covered by rebates or NAA tax credits.
Property: Town Hall
302 Main Street, Old Saybrook, CT
Description of the Issues: The Town Hall has three items that need to be remedied: 1) repair of the ductwork on the roof above the Park and Recreation; 2) repair of the ductwork on the roof above the Town Hall and replacement of gutters; and 3) exterior painting of the Town Hall triangle above the front door.
Parks and Recreation Location: Evidence indicates the ductwork on the upper section of the roof over the Park and Recreation game room has been leaking for some time. An inspection of the existing insulation covering the ductwork which supplies air conditioning and ventilation for the gymnasium was found to be waterlogged, rusting and falling off of the ductwork. Apparently over the last several years the ice and water has been falling off the roof, landing on the ductwork and penetrating the existing insulation used to wrap this exterior ductwork that extends from the HVAC unit into the gymnasium. Recently new floor covering costing over $25,000 was installed in the recreational room which is in the area of this leak. It is
recommended that action be taken to permanently fix the water leak. It is estimated that it will cost $4,200 to fix the ductwork.
Town Hall Location: Evidence indicates the ductwork on the upper section of the Town Hall roof is experiencing a similar ductwork problem. The insulation covering the ductwork which supplies air condition and ventilation for the main offices of the Town Hall is damaged and in need of immediate repairs. During the last several years the weight of successive freezing ice ripped the gutter hanger assembly struts and gutter off the building. This gutter system, which was originally installed to collect water and divert it from falling onto the exterior metal ductwork insulation, was rendered useless and has been discarded. It is recommended action be taken to permanently fix the ductwork damage and protect it from future water damage and to reinstall an
industrial strength gutter. The estimated cost for this section of the roof is $7,500 and $1,500 for the gutter.
Exterior Painting of Town Hall: The triangle above the front doors (known as the pediment) and the doors at the Town Hall are in need of painting. These jobs will include scraping, sanding, filling holes and cracks and using rust primer where needed. Labor, materials, and boom lift rental will total $9,200.
Description of the Repairs
The existing damaged insulation must be removed and new insulation installed to maintain the efficiency for the HVAC units; the metal exterior ductwork will be redesigned to shed water, sealed with a new type of metal sealant coating to prevent rusting, and re-wrapped with a newer water-resistant insulation. A new heavy duty metal gutter system is required to protect the new insulated ductwork.
Repair and repaint the triangle above the front doors as well as the front doors of Town Hall.
Quote process
As the ductwork repair is considered an emergency issue, quotes were secured from two vendors that have expertise in this type of repair. When comparing both quotes and work recommendations, the lower bid is stated within this document. Painting of Town Hall is recommended to protect the door/side light and pediment from further damages.
Recommendation
To request total funds in the amount of $22,400, this is inclusive of:
$4,200 to repair the leaks on the roof of the Park and Recreation building,
$7,500 to repair the ductwork located on the roof of Town Hall, and;
$1,500 to install two new heavy duty gutter systems
$9,200 for painting of Town Hall
Property: Acton Library
60 Old Boston Post Road, Old Saybrook CT
Description of the Issues: The Library has three issues that need to be remedied: (1) the replacement of the flat lower roof and repairs to the existing skylight enclosure (2) replacement of the two flat upper roofs; and (3) replacement/repairs to failing heats pumps.
Library Roof and skylight enclosure: With regard to the lower Library roof, it was originally built circa 1989 with the second addition built in 2001. The useful life expectancy of the roof for this building was warranted for 15 years. Consisting of three asphalt rolled sections, the first section, where the HVAC unit is located, is deteriorating (dissolving) and leaking water through the roofing material into the buildings ceiling insulation, ceiling tiles, and lighting fixtures. The lower roof has damage to its slope causing lack of proper water drainage, severe asphalt deteriorated and leaking into the roofing substructure decking support material. This depression of the roof creates ponding and is preventing the water from draining off the lower section of the building. As this freezes during the winter months, it has further hastens the process of expansion and cracking of the roofing material, leaking water into the ceilings and spaces located below. Further, the
scupper/rain baskets system, designed to carry the water off of the roof, are similarly damaged due to the freezing and needs to be repaired. Moreover, freezing is also causing deterioration of the exterior brick and wooden cornice used to support the drainage system. To combat the pervasive issues associated with icing damage, it is also recommended this project include an internal heating system. The estimated cost of repairing this section of the roof is $24,850
The roof has deteriorated at the juncture of the cupola (skylight) and existing roof. Water has been penetrating into the building and needs to be repaired. This project should be done in conjunction with the lower roof as a future remedy for the cupola may cause damage to the lower roof when accessing the cupola for construction purposes. The estimated cost of this repair is $5,150
Finally, the roof cooling tower is in need of repair. The over flow drain pipe tail is draining onto the roof which is normal for tower recycling purposes. Unfortunately this causes rust and algae (mold) debris to accumulate on the roof during the summer months. It is recommended that the roof drain be replaced with a galvanized tail pipe on the HVAC unit and extended with a PVC pipe which would empty into a nearby roof drain to prevent debris from accumulating on the roof.
Temporary repairs to this area of the roof decking and cupola are not recommended because of the advanced age of the asphalt decking material and its worn single ply thickness.
Upper Roofs. Inspection of the remaining two upper flat roof sections, although not leaking water at this time, is experiencing severe bubbling and separating from its under lament support decking. It is recommended this single ply asphalt roofing material used to cover this building be replaced with an EPDM rubber roof system and metal capping to the perimeter of the roof due to these conditions. The estimated cost of repairing this roof is $24,950.
Description of the Repairs
A detailed proposal of the roof repair has been provided by the vendors and includes, at a minimum, removal of the asphalt roofing and siding surrounding skylight structure; installation of insulation and heating structures; replacing the modified drains and scuppers using new copper water baskets and copper rain leaders and connections; Installation of a new cooling tower tail pipe along with an extension to drain water off the roof. The Town will be provided with a manufacturer’s warranty of not less than 15 year NDL labor and material warranty upon completion of the work.
Replacement of Heat Pumps: The existing heating system was installed in the Acton Library in 2001, and currently relies on 34 individual Trane water-sourced heat pumps for heating and air conditioning. Each heat pump costs approximately $7,000 bringing the total heating system cost to approximately $250,000. This equipment, which has a useful life of about 15 years, is beginning to show age and fatigue, requiring frequent repairs. These repairs have included replacement of exhausted blower motors, worn electrical components, installation of replacement compressors and repairs to fix refrigerant leaks. At present, two heat pumps are in immediate need of replacement. Future material and labor cost associated with the replacement of these new heat pumps will
be covered by manufacturer’s warrantees, which include a guarantee on both parts and labor for one year and a 5-year warrantee on the compressor.
Heat Pump #21- Located in the Archive room, it has a refrigerant leak on a reversing valve that is in a difficult spot to make repairs without removing it from the ceiling, and thereby making the repairs and then reinstalling it time consuming. Estimated costs for making field repairs to this unit are over $2,000, and will not result in a new warrantee to repair existing units.
Heat Pump #29-Located on the second floor has a defective fan motor, compressor, compressor contacts, and capacitor. Estimated replacement cost for this 3-ton Trane heat pump unit ranges between $6,800 and $7,300.
Description of the Repairs:
It is recommended to replace both heat pumps with new and more efficient Trane heat pump units, which would come with a guarantee as described above. Assuming a cost of $7,300, the total cost would be $14,600. It is recommended to add $2,000 to this budget ($16,600) to inspect the remaining units and make minor repairs to increase their reliability and efficiency for the upcoming heating seasons. A long term maintenance plan will be developed for the balance of the heat pumps given the fatigue and aging conditions of the system.
Quotes Process
The estimates for the lower roof, skylight, cooling tower and upper roofs were used to determine the replacement cost of $55,000. Three bid proposals will be requested and the Town will follow the bidding requirements as outlined in Chapter 5 of the Town Code.
With regard to the heat pumps, the Town has a maintenance contract in place with NEEC, where the price of labor is contractual and is lower than other pre-approved vendors on the Connecticut Department of Administrative Services vendor list. The equipment will be purchased directly by the Town, and both the cost of labor and equipment is estimated to be $16,600.
Recommendation
To request $55,000 for the replacement of the upper and lower roofs, repair of the cupola and cooling tower.
To request $16,600 for the replacement of two heating pumps; these same funds will also be used to make minor repairs to remaining heat pumps in the building as may be needed.
Property: Katherine Hepburn Cultural Art Center,
300 Main Street, Old Saybrook, CT
By way of background, an energy audit was performed on the KHCAC, which produced four recommendations to improve the efficiency of the facility: 1) comprehensive LED lighting retrofit ($46,816); 2) installation of an energy management system ($47,432); 3) application of solar film to the lobby windows ($4,256); and 4) replacement of the dual boiler system ($39,924). The total of the recommended repairs is approximately $138,000. If these repairs are made, the KHCAC is projected to save $16,000 annually in energy costs ($12,875 in electric savings and $3,150 in gas savings).
As part of this energy audit, the Town has also qualified for $39,518 in direct rebates and $3,952 in a comprehensive rebate that is qualified when all projects are done that will be paid for by Eversource, thus reducing the total project cost to just under $95,000.
To pay for the $95,000, the KHCAC will take advantage of the Connecticut Neighborhood Assistance Act (NAA) Tax Credit Program, which is designed to provide funding for municipal and tax exempt organizations by providing a corporation business tax credit for businesses that make cash contributions to these entities.
The NAA program has two key statutory limits that affect the KHCAC:
A non-profit organization is limited to receiving $150,000 in contributions in the aggregate.
The program has a five million dollar cap, which, if exceeded, results in a proration of approved donations.
The KHCAC has received $144,500 in pledged contributions from four businesses. Assuming that the aggregate amount of contribution is above the $5 million cap, a pro-rata amount will be approved. Therefore, should the contribution be pro-rated to 66%, the KHAC will receive $95,370 which will cover the cost of the balance of the repairs. The pro-rate percentage should be disseminated by the end of October.
When working on the energy efficiency implementation, a few repairs were noted that are not covered by the energy efficiency project work, and therefore a budget of $37 thousand is requested to complete the work at the KHCAC. In essence, $175,000 worth of work will be completed on the KHCAC and the Town’s share will be $37,000, or 21% of the total cost. With a projected annual savings of $16,000, the return on investment period for the Town’s contribution is 2.3 years. An outline of the proposed work is below.
Description of the Issues:
As part of the mechanical repairs to its HVAC equipment under the Eversource Utility Project described above, New England Energy Controls, Inc., (NEEC) completed an exhaustive survey of the remaining equipment in the building which does not qualify as part of the energy assistance project. A summary of the $37,000 in repair recommendations and their estimated costs are listed below.
Replacement of a three way valve in the Concert Hall at an estimated cost of $2,805,
Replacement of an “undersized” manual isolation valve on AHU 6 at an estimated cost of $2,500,
Replacement of one of the three leaking condenser coils on the main 60-ton, air-cooled chiller unit at an estimated cost of $9,200,
Replacement and relocation of the glycol tank make-up valves on both the hot and cold water system at an estimated cost of $672,
Replacement of original heating boiler with two high efficiency NG high-efficiency dual modular fired boilers and flue system at an estimated cost of $16,000, and
Modification of existing lower lobby AHU-5 ductwork to convert from 100% outside air to both outside and return air to reduce seasonal humidity at an estimated cost of $5,980.
Recommendation:
Provide $37,000 in funding to complete the portions of the energy efficiency project that are not covered by rebates or NAA tax credits.
After a long discussion with regard to Mr. Moran’s report the following motion was made:
A motion to recommend to the Board of Selectmen an appropriation of $138,000.00 for repairs outlined in Mr. Moran’s report was made by Mr. Thorpe, seconded by Mr. O’Nell . Motion passed with 1 opposition.
Selectman Report
Mr. Fortuna touched on the following:
- Honda engine & Police Boat sold; 10% commission went to charity;
- Dept. of Public Health proposal with county regional health boards;
- CCM will hire consultant to be proactive with Legislature regarding new taxing system;
- Furniture piece in town hall donated by Dr. and Mrs. Reece; made by Arucana from a tree that was on Historical Society property taken down some years ago;
- In Phase II at Custom Marine;
- 185 Bokum Road: waiting for appraisal; will go to Public Auction;
- LED lights – Selectman will be back to board;
- Study of Transfer Station;
Mr. LaMay thanked Mr. Fortuna.
Public Comment
The following comments were made:
- Roofing materials;
- Transfer Station; Residential?
- Facilities Manager;
- Report of finances for moving out of Custom Drive;
Comments from the Chair
Mr. LaMay thanked everyone for attending and noted he had no comments at this time.
This meeting in its entirety was video taped and can be viewed on Town Website YouTube.
A motion to adjourn was made by Mr. Thorpe, seconded by Mr. O’Nell at 8:58 p.m. and so VOTED unanimously.
Submitted,
Gerri Lewis, Clerk
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