Board of Finance Minutes 06/05/2008
 Minutes of the Special Board of Finance meeting held on Thursday, June 5, 2008 at 8:00 p.m. at Christ the King Parish Hall ~
Present: Regular Members: Mark Diebolt, H. P. Garvin III, Christopher Kerr, Andrew Russell, Wayne Devoe, David Woolley
Alternate Members: Judy Read, Ruth Roach, Janet Sturges
Timothy C. Griswold, ex-officio
Guests:~~John Forbis, Selectman Skip Sibley
Chairman Andrew Russell called the meeting to order at 8:02 p.m.
A motion was made by Mr. Kerr to move agenda item 2 (Christ the King South Chapel Parking Lot Purchase Option) to the June 17 agenda. Mr. Garvin seconded the motion which passed unanimously.
Town Hall Project
First Selectman Griswold distributed four financial statements to the Board of Finance detailing the Town Hall Expansion Project budget and construction costs, furniture costs, and the source and use of funds.
First Selectman Griswold and Mr. Forbis explained statement #1, which listed the total project costs (budgeted, actual & pro-forma), itemized by category.
They explained which items went over what was estimated in the budget and why, and recommended that certain items be eliminated or deferred in order to save money. The builder wants to finish the project by the end of June or July, which would save some money on overhead (architect’s supervision fees, construction fees).
John Forbis explained that the change orders total $235,000, which is 8.3% of the construction budget (5-10% of budget is standard).
Gross construction costs were $3 million, other costs totaled $1.4 million, for a total of $4.4 million.
The bond amount will be $4 million.
Judy Read asked if the town had originally planned to borrow 4.4 million for the project. Mr.
Griswold said no.
Wayne Devoe asked if the town has discussed the terms of final bonding. Mr. Griswold replied not yet, but it will be a level payment serial bond.
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Then Mr. Griswold reviewed statement #2 – the list of items needed to finish the project.
The items are: photovoltaic system, paving (finish course), interior signage, audio visual system, American Legion display cases (cost reimbursed by American Legion), 3 built-in cabinets, emergency generator, meeting hall storm panels, meeting hall acoustic & shades, bond transaction fees, parking lot striping, 10% contingency fund.
The items total $209,500, less $40,000 in reimbursements and photovoltaic anticipated grants, for a net cost to the town of $169,500 (pro-forma).
First Selectman Griswold asked the Finance Board if they will vote on the issue at this meeting or bring it to a town meeting.
Chairman Andrew Russell replied that the board would like to listen to the rest of the information and hear public opinion, and that the board would not vote at this meeting.
First Selectman Griswold went over statement # 3, the Town Hall Expansion Furniture Schedule. $75,000 was budgeted, $55,299.30 has been allocated ( for furniture consulting, purchase of auction furniture, purchase of new office furniture, purchase of 100 auditorium chairs, repair of 32 Windsor chairs, refinishing conference tables,). $19,700 is left available.
First Selectman Griswold then reviewed statement # 4, Town Hall Expansion Project – Source and Use of Funds. The town received $400,000 ($200,000 from the Historic Restoration Fund and $200,000 from the Local Capital Improvement Fund) but did not receive the $600,000 Small Cities Grant from the Dept. of Economic Development. The town contacted government liaisons in an effort to see if there was any way to get the Small Cities Grant, but was not successful. He pointed out that the town did receive a STEAP Grant for $425,000 for the Church Corner project.
First Selectman Griswold suggested that donations from private citizens could help to make up for the lack of the $600,000 grant money. The donations could be given to the Town Clerk who has an account that is used for building improvements, etc.
Chairman Andrew Russell stated his concern that some items had been ordered before the budget was approved.
Public Comment
Bill Foland had 5 comments:
1. He stated that the notice of the Special Board of Finance meeting, although filed with the Town Clerk, was posted on the outside bulletin board at Town Hall, which is in a construction zone and not open to public access.
2. He asked to have a Public Hearing on the Town Hall Expansion issue before having a Town Meeting so that people can get information.
3. He would like the Photovoltaics to be installed and not deferred because they have a good return on investment.
4. He stated that at the May 19 budget meeting the Board of Finance questions should have been asked prior to the meeting, and wondered about the Board of Finance’s oversight of the project.
5. He questioned why contractors were employed by the town to do work that the Town Crew could have done if they were not busy working at the Town Hall.
Peter Garland stated that he would like copies of the financial information that was distributed to the Board of Finance. He asked what role the Board of Finance had in the Town Hall project, and when the town knew it would not receive the Small Cities Grant.
Maggie Ward stated that the taxpayers are upset that the town did not receive the Small Cities Grant. She would like the town leaders to take responsibility for not getting the grant. In January, 2008, a mailing was sent to townspeople stating that the town had applied for the Small Cities Grant; she would like to see the paperwork. She wanted to know why money was spent without approval from taxpayers. She stated that she wants the project to be finished but wants the town to be clear about the finances.
Mary Stone stated that she served on the Old Lyme Board of Education for 7 years and that there must be clear communication about how the Town Hall Expansion funds were spent. The Building Committee should be able to help, but no minutes were kept. She feels decisions were made without people who could use their expertise to help with the project. She is also concerned about the integrity of the building and feels that window quality was compromised by using the Bi-Glass system (for the old windows) because it does not meet the 120mph hurricane code. She is in favor of installing (not deferring) the Photovoltaics because they are cost-effective.
Paul Fuchs stated that he is disappointed and frustrated about the lack of the Small Cities Grant. He also stated that deferred costs still have to be paid, and that he would like to see the expansion project done right, but wants to know what was done. He commented that the financial statements should have been given to the Board of Finance in advance of the meeting.
Joan O’Neil commented that she would like to see the project completed and done right, but does not think it is realistic to expect $600,000 to be raised by donations. She does not want the non-profit organizations in town to lose potential donations.
Mary Jo Nosel urged the Board of Finance not to be like Old Saybrook.
Diana Atwood-Johnson stated that she would like a clear view of the big picture. How much was supposed to be spent versus how much was spent, and where will the extra money come from? What is the Board of Finance’s process to approve $235,000? She asked the Board of Finance to be forthcoming and use a transparent process.
Adjournment
A motion was made by Wayne Devoe, seconded by Mark Diebolt and passed unanimously to adjourn the meeting at 10:38 P.M.
The next Board of Finance meeting is scheduled for Tuesday June 17th at 7:30 pm.
Respectfully Submitted
Martha Hansen
Clerk
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