Old Lyme CT - Board of Finance Minutes 11/16/2010

Board of Finance Minutes 11/16/2010

	Minutes of the Board of Finance meeting held on Tuesday, November 16, 2010 at the Old Lyme Memorial Town Hall
Present:	Regular Members: Andrew Russell, H. P. Garvin, III, Christopher Kerr, Janet Sturges, David Woolley
	Alternate Members: David Kelsey, Judy Read Nicole Stadjuhar, Finance Director
Absent:	Regular Members: Wayne Devoe
	Alternate Members: Maggie Ward Timothy C. Griswold, Ex-Officio
Guest:	Gary Yuknat, President, Shoreline Sanitation
	Mr. Russell called the meeting to order at 7: 30 p.m. Minutes of October 19, 2010 The minutes of October 19, 2010 meeting were reviewed. The corrections were under the Selectman’s Report. First section, change “McCurdy Court” to “McCurdy Road”. Under Church Corner, change “Salem Country Gardens” to “sub-contractors”. A typographical error was noted in the title of “Automated Single Stream Recycling Bid Update”. There being no further corrections noted, a motion was made by Mrs. Sturges, seconded by Mr. Kerr to approve the minutes as modified. Mr. Garvin abstained as he wasn’t present at the October meeting. Motion carried. Chart of Accounts/Financial Reports Mrs. Stajduhar outlined the Financial Report Notes for October 2010. Under the Revenues, Property tax – current levy is 53.7% collected. $15,705 of revenue collected by the Building Department has not been posted which would change the amount remaining to be collected at 63%. $7,900 of revenue collected for Septage has not been posted which would change the amount remaining to be collected at 55%. Mrs. Stajduhar stated that the Town received the following state grants during the month: $32,652 for Pilot State Property, $2,021 for Emergency Management reimbursement, and $3,399 for Pilot Colleges. Under the Expenditures, the Treasurer – contracted services included June 30, 2010 auditor’s progress billing of $4,500. Public Works vehicle fuel is allocated quarterly but in October, $11,000 of fuel includes $3,000 for Public Works vehicles and the remaining amount must be apportioned to Police and Animal Control. It is noted that the Fire Department spent $15,900 on air packs, as budgeted. Capital Expenditure includes $6,000 for R-10 postage and another $3,000 in payroll for the individuals doing the determinations. Public Works small equipment includes a new snow blower for $2,600. The paving of Homestead Circle was completed for $72,060. Ms. Read expressed concern about the paving project of Homestead Circle. Mrs. Stajduhar highlighted the various Trial Balance Fund Report Notes with significant changes from July 1 through October 31, 2010. Within the General Fund, cash increased from $3.6M to $8.6M due to the first installment of taxes collected and the transfer of $320,000 from the Parking Lot fund to the General fund. Due from other funds increased by $205,000 due to Bus Barn and Church Corner projects that are still ongoing. The accounts payable decrease of $310,000 is due to the timing of bills. Other liability decreases are due to the timing of payroll withholdings. The Restricted Fund experienced an increase of activity as donations, private grants and insurance refunds move through this fund. Landfill Closure revenue includes $39,000 for acceptance of glass at the Landfill from Willimantic Waste. All the revenue related to dogs goes into the Dog Fund and a majority of it is remitted back to the State at year end. Other than interest income, there has been no activity for Revaluation, Land Acquisition, Town Woods Park or CRRA. The Parking Lot fund has been zeroed out and transferred to the General Fund. Income for Harbor Management includes interest and fees for moorings while expenditures include the harbor master, clerk fees and mooring R&M. The only revenue in the Town Hall expansion fund is from interest while $29,000 in expenditures have been spent year to date as the project comes to a close. There has been $72,000 in year to date expenditures for the Church Corner Project. Cash due to the Fire Fighting Fund was transferred from the General Fund. In the Social Worker’s fund, $500 in donations were received and almost $900 spent in support services. Performance Bonds - $34,000 withdrawal from cash is for Village Estates which was transferred to the general fund to be spent on specified improvements. Bus Barn Fund received $5,000 of rental income from the bus company. The accounts payable of $41,576 represents retainage payable to Machnik Construction. Due to general fund of $623,000 is the amount to be paid back to the various Town funds from bus rental income. These funds financed all costs related to the construction of the Bus Barn.
	New Business There was nothing to report.
	Old Business Rye Field Tax Abatement: Mr. Kelsey stated that he received a revised Financial Report stating that either Dr. Faniola or his wife were on the Board at Rye Field. He stated that Dr. Faniola supplied the 2009 financial statements as well. Rogers Lake Weed Study: A fast spreading fan wart weed was spotted on Rogers Lake. It is very important to eradicate this weed, as $1,250 of the $2,520 approved on September 21^st was used for this purpose. This must be reviewed in the spring. Single Stream Recycling: Single Stream Recycling: Via Teleconference, Mr. Griswold explained that the single stream recycling was put out to bid and both interested bidders failed to supply all that was requested later. Shoreline did respond with the information requested. After speaking to the attorney, it was decided to reject both bids, which terminated the entire bid process. The Board of Selectmen met last evening to discuss amending the municipal refuse contract to include the recycling function in the contract. This would add $28,000 to the Refuse contract for the two months of May and June and $170,600 for FY2012. Mr. Griswold’s memo highlighted the Automated Single Stream Recycling Cost Differential: Shoreline Sanitation vs. the Town. Within the present system, there are two recycling employees and their combined annual income and benefits cost is $96,306. There are presently two trucks that are used for recycling. The cost of fuel, repairs and replacement amounts to $42,000 a year. Therefore, recycling total costs $138,306. With the proposed system, the Shoreline Sanitation FY12 cost will be $170,600, which is an increase of $32,300. One of our two recycling drivers would be employed by Shoreline and the other would move to the Public Works staff. After including the cost of transferring the recycling employee to Public Works the proposed system would cost $80,447 more than the present system. Mr. Griswold’s memo highlighted Single Stream Recycling annual cost and cost per Ton. Assuming a 400 ton increase in recycling (33% from 1,200 tons to 1,600 tons) after introducing the new system, which corresponds to a 400 ton decrease in refuse, there would be a $27,600 savings in CRRA tip fees. In conclusion, the automated single stream will cost about $32,300 more per year than at present. However, as the recycling rate increases, the cost per ton decreases and the town will save about $7,000 in tip fees per 100 tons. With the present system, the town would have to add a third truck if tonnage exceeds 1,500 tons, however , the automated system can handle up to 3,600 tons before weekly collection or a second unit is needed. The purchase of 4,700 (95 gallon) recycling carts, delivery to Old Lyme, assembly of the carts, home delivery and inventory will cost an estimated $225,000. The Board of Selectmen voted to recommend to the Board of Finance and to a future Town meeting the following: To amend the Shoreline Sanitation contract to include automated single stream recycling to the FY11 budget for the months of May and June at an amount not to exceed $29,000. To amend the Shoreline Sanitation refuse contract to include automated single stream recycling, (an increase of $170,600 in FY12); To appropriate an amount not to exceed $260,000 to cover all costs associated with the purchase of and distribution of 4,700 (95 gallon) recycling carts. Once approved by the Board of Finance, the Automated Single Stream Recycling plan will be scheduled to go before a Town meeting in mid-December. A motion was made by Mrs. Sturges, seconded by Mr. Kerr to recommend to a Town Meeting to appropriate an amount not to exceed $29,000 to fund automated single stream recycling for the two months of May and June 2011. Motion carried. A second motion was made by Mr. Kerr, seconded by Mrs. Sturges to recommend to Town Meeting to appropriate an amount not to exceed $260,000 to purchase 4,700 recycling carts, including shipping, assembly, delivery and inventory, and Motion carried. Town Pension Contribution Proposal: There was a memo from Mr. Griswold explaining that the Town has funded the annual pension contribution to eligible employees once per fiscal year, usually in October. The reason that it was funded early in the fiscal year was to enable employees to benefit from the income and possible appreciation of their contributions for a majority of the fiscal year. In the event an employee left employment during the fiscal year, the Finance Department would instruct The Hartford to withdraw from the employee’s account a proportionate amount of funds equal to the remainder of the fiscal year not worked. Questions have been raised as to whether the Town should withdraw funds from an employee’s account or whether a new funding policy should be adopted. Several options have been considered and the following policy has been proposed. The First Selectman will recommend the pension contribution annually, as part of the budget process. The amount has been based on a certain percentage of an eligible employee’s base compensation or salary and does not include overtime or stipends, etc. Following the Town budget approval, the Finance Department will divide each eligible employee’s pension contribution into four equal installments to be paid on the following dates during the next fiscal year: September 30^th, December 31^st, March 30^th and June 30^th. If an employee were to leave the employment of the Town during the fiscal year, his/her quarterly contribution will be reduced to reflect the time worked during the last quarter. If the employee worked part or all of a given month, he/she would earn the pension contribution for that month. All pension contributions and withdrawals are subject to applicable vesting requirements. This new policy will enable an employee to reasonable benefit from the earnings and potential appreciation of his/her pension contribution during the year as well as improving the way the Town handles contributions for employees who leave employment during the fiscal year. Church Corner A Church Corner Project-Conclusion Source and Use sheet was distributed and is attached to these minutes. Mrs. Stajduhar stated that the uses include $48,383 for American Industries for retainage ($7,996) and $40,387 for the remaining work, including the bluestone walk, 6 aprons and 2 granite curb sections and $5,815 for contingency. The sources included $36,498 of the original $600,000 appropriation, and $17,700 that the Board of Finance appropriated on July 15^th, for a total $54,198. The last task, the bluestone sidewalks, is complete, which means that American Industries has completed its work. At a recent Selectmen’s Meeting, the Selectmen discussed having an as-built survey performed for the Church Corner Project and agreed that it should be done. Cost estimates to have this done ranged from $3,000 to $5,000. There was a discussion about the Rowley/Hendriks billing. The general consensus of the Board of Finance is to not make payment to Rowley/Hendriks until final approval by the Board of Finance.
	Budget Overview Discussion

	Mrs. Stajduhar distributed the budget books and stated that there are several departmental budgets that she is still awaiting. Mrs. Sturges suggested that, when setting up the budget season calendar, the non-profit organizations be placed at the end of the budget process to avoid having them come back to the Board.


	Selectman’s Report Mr. Griswold was not in attendance; therefore, there was nothing to report.




	Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, December 21, 2010 at 7:30 p.m. A motion was made by Mr. Kerr, seconded by Mrs. Sturges to adjourn the meeting at 8:57 p.m. Respectfully Submitted, Michele Hayes-Finn Secretary